CEOMorningBrief FRIDAY, AUGUST 25, 2023 ISSUE 626/2023 theedgemalaysia.com IMF: TOTAL SPENDING ON FUEL SUBSIDIES TOPPED US$7 TRILLION IN 2022 p15 HOME: Cabinet approves progressive wage policy, details to be tabled in Budget 2024 — Rafizi p2 TNB to invest additional RM35 bil over 2025-2030 to beef up grid for energy transition p2 WORLD: Global trade growth poised for 3Q rebound — WTO p14 BRICS invites Saudi, Iran, UAE and others to join developing world bloc p17 Lira rallies as Türkiye stuns with biggest rate hike in years p19 Report on Page 4. Eco World International declares bumper dividend; three shareholders stand to receive RM550 mil Sime Darby makes takeover bid for UMW Holdings, including PNB’s stake, at RM5 per share Report on Page 3. WWW.FREEPIK.COM
friday A UGUST 25, 2023 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] Cabinet approves progressive wage policy, details to be tabled in Budget 2024 — Rafizi TNB to invest additional RM35 bil over 2025-2030 to beef up grid for energy transition KUALA LUMPUR (Aug 24): The progressive wage system policy has been approved at the Cabinet level and the details will be tabled during the upcoming Budget 2024 in October. Economy Minister Rafizi Ramli said the system is expected to be implemented in April or May next year, hence the reason why the policy has to be included in the budget tabling. “The policy has been approved in principal as well as the approach and then we have to go through a series of processes including bringing down to all stakeholders and the level of coverage for specific group. “Thereafter, we will translate it into the financial commitment that the government has to do and we will go through in the budget process,” he told reporters after the signing ceremony of the Executive Digital BALI (Aug 24): Tenaga Nasional Bhd (TNB) plans to deploy an additional RM35 billion between 2025 to 2030 towards upgrading Malaysia’s power grid, to ensure the infrastructure does not become an obstacle in the nation’s energy transition (ET) endeavours. During a session at the ASEAN Energy Business Forum (AEBF) 2023 on Thursday (Aug 24), TNB president and chief executive officer Datuk Baharin Din said this is on top of the national utility giant’s RM54 billion non-ET investment allocation for the grid over the same five-year period. This means that TNB plans to invest a total of RM90 billion into Malaysia’s grid in the coming five-year period. This is nearly double the RM46 billion the group allocated for 2018-2024, Baharin highlighted, which comprises RM40 billion for non-ET and RM6 billion for ET. Bernama home by Izzul Ikram theedgemalaysia.com Elaborating on the rationale behind TNB’s move to ramp up investment in the nation’s power infrastructure, Baharin cited the grid-related issues developed markets faced when they embarked on their respective RE journeys, a problem the utility group hopes to avoid. “Taking cues from more mature markets, we see that the grid is potentially becoming a bottleneck that is delaying the scale-up of renewables. “This can also be observed across the UK, and even the US and others as each country’s connection queues for wind and solar projects [to be plugged into their grids] ranges between a staggering 50GW (gigawatts) and 200GW,” Baharin said. “Therefore, for Malaysia, we want to make sure that we build this grid infrastructure early so that it will not become a bottleneck in the adoption of more RE,” he added. Leadership Programme here on Thursday (Aug 24). He said the government puts more focus on the development of states during the budget in an effort to bridge the economic development gap between states in Malaysia. “We have three categories actually... one that has been given priority (Sarawak, Sabah, Kelantan, Terengganu, Kedah and Perlis); the second is for states with growth that have their own economic development without much injection from the federal government (Penang, Selangor and the Federal Territory of Kuala Lumpur); third is for states in the middle (Perak, Johor, Negeri Sembilan and Melaka). “This is also a change that we are refining because we also need to be fair to certain states such as Perak, Negeri Sembilan and Melaka,” he said. Budget 2024 has been scheduled for tabling in Parliament on Oct 13. Economy Minister Rafizi Ramli said the progressive wage system policy is expected to be implemented in April or May next year, hence the reason why the policy has to be included in the budget tabling in October. the edge
FRIDAY AUGUST 25, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 24): Sime Darby Bhd is buying a 61.18% equity interest in UMW Holdings Bhd from its parent company Permodalan Nasional Bhd (PNB) for RM3.57 billion or RM5 per share. UMW shares were last traded at RM4.62. The offer price of RM5 represents 8.2% premium. The biggest automotive deal in the country will see Sime Darby launch a mandatory general offer (MGO) to buy the remaining shareholding of 38.82% and take UMW private. The MGO is expected to cost roughly RM2.27 billion, the group said in a filing to Bursa Malaysia. The announcement confirms a report in The Edge Malaysia weekly’s Aug 14-20, 2023, edition, which said PNB intends to consolidate its auto business by selling its stake in UMW, according to sources privy to the matter. The deal, which values UMW at RM5.84 billion, will be funded by internal funds and borrowings. The total consideration also translates into an implied price to earnings ratio (PER) for UMW of 14.1 times and price to book ratio of 1.3 times. This compared to Sime Darby’s PER of 13 times as at Aug 23, while its peers like DRB-Hicom Bhd has a PER of 15.2 times, Bermaz Auto Bhd 8.5 times, and MBM Resources Bhd 5.1 times. Subsequently, Sime Darby will double its net gearing ratio to 0.40 times from 0.20 times as at its financial year ended June 30, 2022 (FY2022). Sime Darby also said it does not intend to maintain the listing status of UMW on the Main Market of Bursa Securities. According to the filing, the deal will require shareholders approval through an extraordinary general meeting. CIMB Investment Bank Bhd is the principal adviser, while AmInvestment Bank Bhd has been appointed as the independent adviser for the deal. The acquisition is expected to be completed by the fourth quarter of this year, and the MGO by the first quarter of 2024. Under the listing requirements of Bursa Malaysia, it is mandatory for new shareholders who acquire 33% or more to launch an MGO. UMW’s notable shareholders are the Employees Provident Fund (EPF) at 7.62%, and BY PRIYATHARISINY VASU & CHESTER TAY theedgemalaysia.com Sime Darby makes takeover bid for UMW Holdings, including PNB’s stake, at RM5 per share Retirement Fund Inc (KWAP) at 9.13%. Sime Darby to streamline UMW’s business via divestment of non-core assets Upon the completion of the deal, Sime Darby intends to undertake a comprehensive review of various businesses within UMW Group to determine the strategic plans for the integration of UMW Group into Sime Darby Group. “The key objectives of the integration plan are to ensure continuity of UMW Group’s businesses, formulate action plans to realise anticipated synergies, harmonisation of systems and policies as well as aligning organisational cultures,” the group said in the filing. As part of the comprehensive review, Sime Darby also intends to identify strategic options to streamline UMW Group’s businesses through assets that would be required to be disposed of. “In respect of the foregoing, Sime Darby wishes to highlight that the aforementioned divestments shall be explored at the appropriate time and subject to acceptable terms,” the group said. According to The Edge Malaysia’s report, the reason for the corporate exercise is the valuation of Perusahaan Otomobil Kedua Sdn Bhd (Perodua), which is not reflected anywhere because of its current shareholding structure. “The objective is to list Perodua eventually. Its net tangible assets are about RM2 billion. The market capitalisation of both UMW and MBM Resources Bhd (a public-listed company that owns a stake in Perodua) does not reflect Perodua’s value,” a source said. Perodua is a joint venture between Malaysian and Japanese entities, with no one party holding a controlling stake. Through wholly owned UMW Corp Sdn Bhd, UMW owns 38% of Perodua, while Daihatsu Motor Co and its Malaysian outfit own a 25% stake. Propels Sime Darby as the largest automotive player in Asia Pacific The automotive segment is UMW Group’s largest business, with its subsidiary the sole distributor of Toyota and Lexus car models in Malaysia while its associate, Perodua, in which UMW Group is the largest shareholder, is among Malaysia’s largest automotive manufacturer. The exercise is expected to scale up Sime Darby Group’s operations in Malaysia, positioning Sime Darby as a leading automotive player with more than 50% market share in Malaysia. The group will be able to leverage this stronger foothold in Malaysia to tap into increased market opportunities and customer base and to unlock potential for revenue growth and operational efficiencies. The deal is also expected to accord Sime Darby full presence across the automotive spectrum by adding high-volume mass market brands (Toyota and Perodua) to complement its existing premium to luxury portfolio (BMW, Rolls-Royce, Jaguar, Land Rover and Porsche). “With increased contribution from Malaysia, the revenue mix of Sime Darby Group’s automotive business will be further diversified geographically with more balanced revenue contributions from Malaysia, along with China and Australia, which are currently the key markets of Sime Darby Group,” the group said in the filing. The deal may also yield additional benefits to Sime Darby by adding manufacturing and distribution capabilities to complement its existing assembly and retail businesses. Read also: Sime Darby to pare down UMW’s RM2.7 bil debt by selling healthcare JV, land Taking over UMW will help ‘plug the gap’ in Sime Darby auto business, says CEO Divestment of Ramsay Sime Darby expected to be completed by 1Q2024, says Sime Darby CEO
friday A UGUST 25, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): Contract manufacturer of automated industrial equipment Genetec Technology Bhd has secured approval from the Securities Commission Malaysia to transfer its listing to the Main Market, provided the group enhances its corporate governance by raising the number of independent directors on its board to over 50% and women directors to 30%. The group, whose clientele include suppliers to electric vehicle behemoth Tesla, announced to Bursa Malaysia that the approval is subject to Genetec implementing “appropriate actions to remedy the non-adoption with Practices 5.2 and 5.9 of the Malaysian Code on Corporate Governance (MCCG)”. “Genetec to proceed with the Proposed Transfer upon providing confirmation to the SC on the adoption with Practices 5.2 and 5.9 of the MCCG,” the filing read. Practice 5.2 of MCCG requires at least half of a company’s board to comprise independent directors. “For large companies, the board comprises a majority independent directors,” the code read, and large companies are defined as companies on FBM Bursa Malaysia Top 100 Index or with market capitalisation of RM2 billion and above. Practice 5.9, meanwhile, requires boardrooms to comprise at least 30% women directors. Genetec’s current boardroom consists of seven members, three of them are independent, with only one female on the board. Shares of Genetec gained seven sen or 3.1% to RM2.36 on Thursday, giving it a market capitalisation of RM1.78 billion. Genetec gets nod for Main Market transfer, provided it appoints more independent, women directors KUALA LUMPUR (Aug 24): Eco World International Bhd is giving out a RM792 million dividend or 33 sen per share next month, with three of its largest shareholders entitled to nearly 70% or RM550.76 million. Its largest shareholder Datuk Leong Kok Wah, through his direct holdings, Eco World Capital (International) Sdn Bhd and Sinarmas Harta Sdn Bhd, owns some 728.73 million shares or a 30.3% stake in the real estate developer, entitling him to some RM240.48 million of the total dividend. Tan Sri Quek Leng Chan, through GLL EWI (HK) Ltd, a unit of Singapore-listed Guocoland Ltd, owns a 27% stake or 648 million shares, giving rise to an entitlement of RM213.84 million from the total dividend payout of RM792 million. Meanwhile, Eco World International founder Tan Sri Liew Kee Sin and his family’s 12.2% stake or 292.24 million shares would give rise to an entitlement of RM96.44 million. After deducting these three parties’ share of dividend, there will be RM241.24 million left for the remaining minority shareholders, who collectively own a 30.5% stake. Eco World International declares bumper dividend; three shareholders stand to receive RM550 mil by Chester Tay theedgemalaysia.com by Chester Tay theedgemalaysia.com The dividend, announced on Thursday (Aug 24), comes following the completion of Eco World International’s capital reduction exercise on Aug 3. The group had earlier said it was targeting to make a first tranche dividend distribution of at least RM300 million to shareholders, following completion of its capital reduction exercise. “The significantly higher amount of RM792 million achieved is attributable to the steady progress made to-date on the sale of completed stocks that have generated substantial cash for the company,” said president and chief executive officer Datuk Teow Leong Seng. He added that the group aims to work toward distributing more excess cash back to shareholders, after setting aside the necessary amount for the group’s working capital requirements. Eco World International narrowed its net loss to RM4.56 million or 0.19 sen per share for the second quarter ended April 30, 2023 (2QFY2023), compared with RM67.35 million or a 2.81 sen loss per share a year earlier (2QFY2022). The group attributed the improvement to higher foreign exchange (forex) gain, as the British pound strengthened against the Malaysian ringgit, higher interest income following capital contribution repayments from the UK joint ventures and lower finance costs due to the group’s progressive repayment of loans. Shares of Eco World International, which climbed 64% year-to-date, closed half sen or 0.8% higher at 64 sen on Thursday, giving it a market capitalisation of RM1.54 billion.
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friday A UGUST 25, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): Kuala Lumpur Kepong Bhd (KLK) has proposed to buy 739.2 million shares or 33% and one share in Boustead Plantations Bhd (BPlant) for a total of RM1.15 billion or RM1.55 per share and plans to take the company private via a mandatory general offer (MGO), confirming The Edge’s report. KLK has entered into the tripartite strategic collaboration agreement (SCA) with Boustead Holdings Bhd (BHB) — which holds a 57.42% stake in BPlant — and Lembaga Tabung Angkatan Tentera (LTAT) — which holds a 10.59% stake in BPlant — on Thursday (Aug 24), the group said in a Bursa Malaysia filing. At RM1.55, the offer is at a 19% premium to its net asset per share of RM1.30 as at March 31, 2023 and 13% premium to its closing price of RM1.37 on Wednesday. The group said the objective of the SCA is to work together with BHB and LTAT towards the long term objective of enhancing the operational efficiencies and crude palm oil yields of the plantations of BPlant over the long term. Barring any unforeseen circumstances, KLK assumed the proposed acquisition and proposed offer to be completed in the fourth quarter of 2023, which it believed will enhance the earnings and earnings per share of the KLK Group for the financial year ending Sept 30, 2024 (FY2024). RHB Investment Bank Bhd has been appointed as the principal adviser to KLK for the proposed acquisition and proposed offer. On the details, KLK said its shareholdings in BPlant will increase from nil to 33% and one share upon completion of the proposed acquisition, while BHB and LTAT will collectively retain their remaining equity interest of approximately 35% in BPlant. BHB — involved in the property and industrial, plantation, heavy industries, pharmaceutical, trading and finance businesses — is a 98%-owned subsidiary of LTAT. LTAT provides superannuation and other benefits for contributors made of retiring and retired personnel of the regular armed forces of Malaysia and designated members of the volunteer forces. KLK said both BHB and LTAT shall be joint offerors with KLK, and the joint offerors will be obliged to extend a MGO to acquire all the remaining BPlant shares not already owned by them for a cash offer price of RM1.55 per BPlant share. The offer price values BPlant at RM3.47 billion. The offer is triggered as a direct outcome of the acquisition by KLK as a result of the increase in the shareholding of KLK in BPlant, the group explained. KLK said the purchase consideration and offer price were arrived at on a “willing-buyer willing-seller” basis after taking into consideration the latest audited consolidated net assets attributable to shareholders of BPlant as at Dec 31, 2022 of approximately RM2.97 billion or RM1.33 per BPlant share. It also took account the historical closing prices of BPlant shares for one year up to Aug 23 of between 60.5 sen and RM1.37 and the price-to-book multiple and enterprise value over planted area KLK proposes to buy 33% and one share in BPlant for RM1.15 bil, takes company private by Hailey Chung theedgemalaysia.com multiple of public listed companies predominantly involved in oil palm plantation business. “The purchase consideration and offer price will be funded via a combination of bank borrowings and internally generated funds, the proportion of which will be determined at a later date after taking into consideration, among others, the gearing and operating cash flow requirements of KLK and its subsidiaries,” said KLK. It said that the deposit of RM130 million has been paid to BHB prior to the execution of the agreement and approximately RM99.2 million shall be paid to BHB within three business days. KLK added that the balance of approximately RM916.6 million shall be settled by way of a direct business transaction on the completion date. The group noted that it had a working relationship with BHB since 1986 through Applied Agricultural Resources Sdn Bhd, a joint venture company involved in agronomic advisory and research services as well as the commercial production of oil palm seeds and planting materials. It said that Thursday’s SCA is expected to strengthen the existing cooperation between KLK and BHB and further provide the KLK Group with the long-term growth strategy for its plantation business. BHB, LTAT gets first right of refusal on Balau and Bukit Mertajam estates In a separate press statement, KLK said BHB and LTAT, under the SCA, are granted the first right of refusal to deal with two plantation estates, namely Balau and Bukit Mertajam (Mayfield Division) estates, with a total acreage of approximately 1,800 acres, for the purpose of development of the land hence providing added value to BHB. LTAT chief executive officer (CEO) Datuk Ahmad Nazim Abd Rahman said: “This timely strategic collaboration marks the beginning of the reset strategy for BHB, which will result in significant value enhancement to the group. “We firmly believe that this strategic collaboration with its synergies will unlock greater value for all stakeholders within the business value chain. We are confident that this will put both BHB and LTAT on a firm footing towards a sustainable future.” Read the full story KLK to buy 33% and one share in BPlant for RM1.15 bil, take company private CEOMorningBrief THURSDAY, AUGUST 24, 2023 ISSUE 625/2023 theedgemalaysia.com GLOBAL FUNDS ABANDON CHINA BLUE CHIPS IN US$11 BIL SELLOFF p15 HOME: AGC to represent Dr M, Nor Yakcop in Halim Saad’s suit p2 Hibiscus annual revenue exceeds RM2 bil for the fi rst time; plans dividend, share consolidation p4 Arul Kanda, Irwan Serigar fail in bid to strike out 1MDB’s US$6.59 bil lawsuit p11 WORLD: US economy near stalling point as consumer demand weakens, survey says p16 India set to ban sugar exports for fi rst time in seven years p17 Report on Page 3. THE EDGE FILE PHOTO KLK to buy major stake in Boustead Plantations from LTAT, and to take fi rm private FLASHBACK: Aug 24, 2023
friday A UGUST 25, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): Dayang Enterprise Holdings Bhd marked a return to profitability after notching a net profit of RM64.69 million in the second quarter ended June 30, 2023 (2QFY2023), its highest quarterly profit since its 4QFY2019 result of RM78.23 million. In a year-on-year (y-o-y) comparison, the integrated oil and gas (O&G) service provider’s latest quarterly net profit represents a 54% jump from RM42.02 million, which it credited to higher utilisation rates for vessels with better margin. Dayang Enterprise said net profit rose despite a net realised or unrealised foreign exchange (forex) loss of RM18.7 million in the current quarter versus a net realised or unrealised forex loss of RM4.7 million a year ago. Correspondingly, earnings per share increased to 5.59 sen from the previous 3.63 sen, it reported in a Bursa Malaysia filing on Thursday (Aug 24). Revenue also rose 16% y-o-y to RM305.73 million in 2QFY2023 from RM263.41 million, it said. “Vessel utilisation during the current quarter has improved from 66% to 72%, as compared to 2QFY2022,” Dayang Enterprise said. Besides the higher capacity utilisation of vessels with improved daily charter rates, the group said it bagged more work orders or contracts from oil majors under topside maintenance contracts. It did not declare any dividend for 2QFY2023. Dayang Enterprise’s net profit and revenue for the cumulative six-month period ended June 30, 2023 (1HFY2023) was still below 2HFY2022, which it attributed to unfavourable oil prices in early 2023 as well as the forex loss. Net profit for the period-to-date stood at RM48.75 million, a 13% decrease from RM55.78 million, while revenue fell slightly by 1% to RM418.15 million from RM423.55 million. In terms of prospects, Dayang Enterprise said the positive performance of 2QFY2023 may be sustained in the remaining quarters of 2023. “The earnings visibility remained fair given that quite a few ongoing contracts have been extended until FY2024. In addition, the contract extensions were given with a moderate revision in unit rates to cover a substantial surge in operating cost, especially raw materials and logistics. “At present, we anticipate similar call for work orders from our clients to better maintain their production capabilities with an outstanding estimated call-out contracts of about RM1.19 billion. “We will however remain prudent in managing our business affairs while continuing to deliver outstanding performance,” it said. On Thursday, Dayang Enterprise’s share price closed six sen or 3.97% higher to RM1.57 — the highest since its closing price of RM2.08 on March 6, 2020 — valuing the group at RM1.82 billion. by Hailey Chung theedgemalaysia.com Dayang Enterprise Holdings Bhd 0 50 100 150 200 Jan 2, 2020 Aug 24, 2023 0 1 2 3 Vol (mil) RM RM1.57 RM2.44 RM2.08 Source: Bloomberg DEHB’s closing price on Thursday hit its highest since March 6, 2020 Source: Bursa Malaysia Dayang Enterprise’s quarterly financial performance (RM mil) (RM mil) -300 -100 100 300 500 -300 -100 100 300 500 Net profit/loss Revenue 4Q 1Q 2Q 3Q 4Q FY19 FY20 1Q 2Q 3Q 4Q FY22 1Q 2Q FY23 1Q 2Q 3Q 4Q FY21 78.23 9.33 -0.99 36.08 13.17 -27.54 -21.89 18.98 -288.49 13.76 42.02 52.9 15.56 -15.95 64.69 285.02 172.06 170.95 230.21 158.23 84.06 159.69 223.84 200.15 160.14 263.41 338.34 222.3 305.73 112.42 Dayang Enterprise 2QFY2023 net profit marks highest quarterly earnings since 2019
friday A UGUST 25, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): DRBHICOM Bhd registered an 80.11% plunge in net profit to RM33.7 million million in the second quarter ended June 30, 2023 (2QFY2023), compared with RM169.56 million a year ago, due to the absence of asset disposal gains recorded in the corresponding period. The higher results in the corresponding quarter were mainly due to the group recognising the income arising from the disposal of then subsidiary Lotus Advance Technologies Sdn Bhd amounting to RM119.51 million under other income. Quarterly revenue increased 12% to RM3.98 billion against RM3.55 billion a year prior, driven by the automotive sector — mainly with contributions from PROTON, automotive distribution companies, and manufacturing and engineering companies, DRB-HICOM said in a filing with Bursa Malaysia on Thursday (Aug 24). Earnings per share (EPS) contracted to 1.74 sen compared with EPS of 8.77 sen in 2QFY2022. The group recorded a net profit of RM141.62 million for the first six months of FY2023, a drop from RM143.82 million in H1FY2022. This is on the back of RM8.09 billion in revenue for 1HFY2023 which represents a 22.1% increase against RM6.62 billion recorded in the corresponding period from sustained performance, especially in the group’s automotive and banking sectors, as well as improvements in other sectors. PROTON recorded a 28.6% increase in sales volume or 77,321 units, with the Saga, X50 and Persona contributing more than 80% of PROTON’s total sales volume. PROTON’s first new energy vehicle (NEV), Proton X90, continued to garner strong local demand to become the new D-segment SUV leader. Other marques within the DRB-HICOM group such as the all-new HONDA WR-V, is also taking the lead in in the small SUV market DRB-HICOM earnings shrink in 2QFY2023 on absence of divestment gain KUALA LUMPUR (Aug 24): Genting Malaysia Bhd (GenM) returned to the black in the second quarter ended June 30, 2023 (2QFY2023). The casino operator posted a net profit of RM47.12 million or 0.83 sen per share compared to a RM10.85 million net loss or 0.19 sen loss per share a year ago. Since January last year, GenM has been in the red for four out of six quarters. The group incurred a net loss of RM27.4 million in the preceding quarter 1QFY2023 on revenue of RM2.28 billion. The earnings in 2QFY2023 were mainly boosted by RM182.2 million net gain on disposal of property, plant and equipment. Interest income in the quarter under review soared to RM29.2 million from RM3.3 million, according to its filing with Bursa Malaysia. Quarterly revenue grew by 13.74% to RM2.47 billion from RM2.18 billion a year ago. GenM attributed higher revenue to the increase in volume of business by Resorts World Genting’s (RWG) gaming and non-gaming segments as well as higher contributions from Resorts World New York City (RWNYC) and the improved operating performance of Resorts World Bimini. GenM’s operating profit came in higher at RM327.5 million against RM277.1 million a year earlier. However, the group’s finance costs of RM158.79 million trimmed more than half of its operating profit. GenM declared an interim single-tier dividend of six sen per share, to be paid on Oct 2. For the first half ended June 30, 2023 (1HFY2023), GenM recorded RM19.74 million net profit versus RM137.4 million net loss a year earlier, as revenue grew 22% to RM4.76 billion from RM3.9 billion. On its outlook, GenM said it will leverage its integrated resort offerings to capitalise on the increasing inbound tourist arrivals to Malaysia to drive incremental GenM returns to the black in 2QFY23 after two straight quarters of losses; declares six sen dividend by Syafiqah Salim theedgemalaysia.com by Priyatharisiny Vasu theedgemalaysia.com foreign visitation to RWG. “The group [also] will continue to invest in the infrastructure at Genting Highlands to elevate the customer experience as well as to enhance the safety and wellbeing of guests and the community at RWG,” it said. GenM said it remains cautious on the volatility implicit in the operating environment, particularly in London. It will proactively manage costs and drive operational efficiencies to further improve the overall performance of the group’s operations. “In the US, the group remains focused on strengthening its leading position in the New York State gaming market. The group will continue to intensify marketing efforts and promotional activities to grow the group’s US database whilst leveraging synergies between RWNYC and Empire’s assets to drive visitation and improve the overall returns of the group’s US operations. Meanwhile, the group will continue to closely monitor developments surrounding the New York Gaming Facility Board’s Request for Application to solicit proposals for up to three commercial casinos in New York State,” it added. GenM’s share price gained two sen to close at RM2.62 on Thursday, valuing it at RM15.56 billion. with over 2,500 bookings within a month of its launch. “Overall, demand for the group’s offerings remains healthy. The group will continue to execute plans to enhance product ranges and service levels, including entry into the Malaysian EV market,” DRBHICOM said. Meanwhile, the banking sector recorded a 37.3% increase in revenue in 1HFY2023 to RM806.77 against RM587.69 million a year ago, primarily due to higher financing income led by the growth in financing volume. This was attributed to sustainable growth and expanding customer base as well as the rise in the overnight policy rate to 3% in the current period against 2% in the corresponding period. The group said its postal sector remains on track in its transformation roadmap, leveraging on technology to enhance customer experience and continue to adopt prudent cost control discipline. The group expects a satisfactory financial performance for the financial year ending Dec 31, 2023 compared with the previous year. DRB-HICOM shares were up nine sen or 6.08% to RM1.57, valuing the group at RM3.04 billion.
friday A UGUST 25, 2023 9 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): NCB Holdings Bhd’s controlling shareholder MMC Port Holdings Sdn Bhd, a wholly owned unit of MMC Corporation Bhd (MMC Corp), has proposed to undertake a selective capital reduction and repayment exercise (SCR) involving cash distribution of RM19 million to entitled shareholders at RM4.80 for each share. In a statement on Thursday (Aug 24), NCB said the SCR will provide greater flexibility to MMC Port in the implementation of any business plan of NCB, moving forward. Upon completion of the SCR, NCB will be a wholly owned subsidiary of MMC Port. It said the offer price of RM4.80 took into consideration its independent adviser’s recommendation, and the mandatory takeover offer price of RM4.40 announced in November 2015. It also considered MMC Port’s previous purchase of NCB shares between January 2018 till February 2023 at RM4.40 a piece. NCB’s current issued share capital is RM470.56 million, comprising 470.25 million shares. MMC Port holds 99.16% stake in the port company. Upon successful implementation of SCR, NCB’s issued share capital will be reduced by RM19 million, by way of cancellation of 3.96 million shares held by entitled shareholders. “The proposed SCR will also reduce administrative efforts and costs pertaining to NCB’s obligations to its shareholders, which can be utilised more efficiently in the business [of] NCB. “It will also provide an opportunity for the entitled shareholders to realise their investment, rather than continue to hold unlisted NCB shares,” the company said. Until completion of the SCR, NCB will not be involved in any fundraising exercises, will not acquire or dispose of any assets, and will not pass resolutions in general meetings without prior written consent. NCB Holdings’ major shareholder MMC Corp proposes selective capital reduction, cash repayment at RM4.80 per share KUALA LUMPUR (Aug 24): Malaysia Airports Holdings Bhd (MAHB), which recorded a net profit of RM102.53 million in 2QFY2023, marking its third consecutive quarterly earnings, is hopeful that passenger movements will recover to pre-pandemic levels by the end of the year. For 2QFY2023, it posted a net profit of RM102.53 million against a net loss of RM58.15 million a year ago, as revenue rose 78.61% year-on-year to RM1.23 billion, from RM689.76 million previously, thanks to increased passenger traffic. During the quarter under review, the group’s cost increased due to higher user fees payable under the Operating Agreement and higher revenue share payable under Istanbul Sabiha Gokcen International Airport’s concession, whilst other operational cost moderately increased to meet operational requirements with the increase in passenger traffic. Notably, it saw share of profits from associates at RM2.69 million versus losses of RM40,000 a year ago, while share from joint ventures was at a RM4.08 million loss versus a RM3.5 million profit a year ago. The improved quarterly results also led to MAHB delivering a net profit of RM160.72 million for the cumulative six months ended June 30, 2023 (6MFY2023) versus a net loss of RM162.91 million in the previous Jan-June period. Its 6MFY2023 revenue also jumped 79.79% to RM2.27 billion, from RM1.26 billion previously. As of the end of 1H2023, the group’s passenger traffic recovered by 82.4% against pre-pandemic levels, underpinned by the resumption of airline services and connectivity, reopening of Chinese borders and an increase in the quota for Haj pilgrims this year. MAHB, which operates 39 airports in the country, saw 38.9 million passenger movements in its Malaysia operation for the first half of 2023 (1H2023), an increase of 91.9% from 1H2022, and a 76.1% recovery against pre-pandemic levels. Meanwhile, its Turkish operations saw an increase of 24.4% y-o-y in passenger movements to 17.2 million in 1H2023, surpassing the 17 million passenger movements recorded in the same period in 2019. Its core cost per passenger improved to RM16.50 per passenger compared with RM20.70 per passenger in 1H2022. As a result, its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to RM1 billion in 1H2023, from RM471.7 million a year ago. In a statement, MAHB’s managing director Datuk Iskandar Mizal Mahmood the various initiatives that the group has embarked on in the past couple of years have begun to come to fruition. “We are seeing better cost efficiency across our operations, improved contribution of commercial revenue, and gaining momentum in earnings growth in both Malaysia and Türkiye,” Iskandar said. Meanwhile, he said that several operational improvements and digital solutions to achieve enhanced service delivery have been rolled out, including the self-service check-in and bag drop facility, EZBagz, and an online feedback management platform, STARdesk. “All these and more are being done to not only improve our service offerings for our passengers and stakeholders but will also be the key drivers to propel our airports back to the top-tier global rankings,” he added. MAHB’s share price closed up three sen or 0.43% at RM6.93, giving the group a market capitalisation of RM11.56 billion. Over the past year, the stock has gained 14%. MAHB posts third consecutive quarterly net profit amid continued recovery in travel demand by Justin Lim theedgemalaysia.com by Priyatharisiny Vasu theedgemalaysia.com
friday A UGUST 25, 2023 10 The E dge C E O m o rning brief home news In brie f MSM net loss narrows in 2Q amid higher capacity utilisation and land disposal gain KUALA LUMPUR (Aug 24): MSM Holdings Bhd saw its net loss narrowing by 38.89% to RM20.82 million in the second quarter ended June 30, 2023 (2QFY2023), from RM34.07 million previously. The better quarterly earnings came in on the back of higher capacity utilisation, lower freight cost, as well as gains from the disposal of its Pulau Indah land of RM8.33 million. It was also boosted by the gain from translation of US dollar balances of RM9.67 million and gain from US dollar forward contracts of RM7.09 million, said the country’s largest refined sugar producer in a statement on Thursday (Aug 24). Hence, loss per share shrank to 2.96 sen in 2QFY2023, compared to 4.85 sen previously. Revenue for the quarter rose 19.5% to RM746.23 million — its highest since the fourth quarter ended Dec 31, 2016 (4QFY2016) when it posted a revenue of RM838.31 million — from RM624.20 million a year before. The improved quarterly results also contributed to MSM’s smaller net loss of RM56.69 million for the cumulative six months ended June 30, 2023 (6MFY2023), from RM61.75 million in 6MFY2022. Its 6MFY2023 revenue increased by 9.38% to RM1.33 billion, from RM1.22 billion in the previous JanJune period. — by Justin Lim MISC back in the black with 2Q net profit of RM453 mil KUALA LUMPUR (Aug 24): MISC Bhd registered RM452.9 million net profit for the second quarter ended June 30, 2023 (2QFY2023) versus RM19.1 million net loss a year ago on the back of a smaller impairment of non-current asset in 2QFY2023. This translated into an earnings per share of 10.1 sen against loss per share of 0.4 sen previously. The energy shipping arm’s revenue was RM3.55 billion, a 10.5% higher than RM3.21 billion in 2QFY2022. The increase in revenue was contributed by improved freight rates in the petroleum and product shipping segment as well as higher revenue from ongoing heavy engineering projects. It declared a second tax-exempt dividend of 10 sen per share amounting to RM446.4 million. The dividend, with an ex-date of Sept 11, will be paid on Sept 21. MISC’s bourse filing on Thursday (Aug 24) showed impairment of non-current assets decreased to RM17.4 million from RM309.8 million. Operating profit increased by 15.3% to RM531.3 million from RM460.9 million due to higher margin on freight rates in the petroleum and product shipping segment coupled with higher profit in the offshore business segment. For the cumulative six months ended June 30, 2023 (6MFY2023), MISC’s net profit more than doubled to RM1.07 billion from RM357.3 million in 6MFY2022. Six-month cumulative revenue advanced 9.02% to RM6.63 billion from RM6.08 billion. — by Syafiqah Salim Telcos told to increase internet speed for National Day celebration PUTRAJAYA (Aug 24): Telecommunication service providers (telcos) have been instructed to increase the speed of internet services on Aug 31 for the 2023 National Day celebration in Putrajaya. National Day and Malaysia Day 2023 celebrations working committee secretary Mazlan Abd Mutalib said good internet access was a crucial element in hosting the important national event to ensure a smooth workflow for those on duty. “We do not want their duties to be hampered due to internet problems. The internet is a crucial element,” he said after surveying the 2023 National Day preparations at Dataran Putrajaya here on Thursday (Aug 24). He was told that several telcos had begun installing telecommunication transmitters at the designated locations in Dataran Putrajaya and testing the access speed of their respective internet networks. Mazlan, who is also the communications and digital ministry senior undersecretary (management), said the Malaysian Communications and Multimedia Commission (MCMC) would monitor the situation to ensure good internet service on that day. He was also satisfied with the level of logistical and technical preparations, which had now reached 90%. — Bernama Anwar vows to keep prices of goods in check IPOH (Aug 24): The government will continue to find ways to ensure that the prices of goods in this country are at a level that does not burden the people, Prime Minister Datuk Seri Anwar Ibrahim said. He said these include increasing food production as well as the introduction of additional measures. Anwar said the government does not take the issue lightly despite receiving criticism over the matter from the public, whom he said may not fully understand the problems behind the rising prices of goods. “The best example of that (government measures) is the work of Datuk Seri Salahuddin Ayub (former domestic trade and cost of living minister). He was always thinking about how to negotiate with companies, shops and producers on how to reduce the price [of goods]. “But the whole world is facing this problem and we are still trying to resolve it as best we can. Now, Armizan (acting domestic trade and cost of living minister) is also helping so that this effort can continue. We will continue to take additional measures,” he said. Anwar said this when officiating the Mega@Tambun Rahmah Sales at the Mydin Manjoi parking lot here on Thursday (Aug 24). — Bernama KLK 3Q earnings fall on weaker CPO, PK prices, absence of net gain KUALA LUMPUR (Aug 24): Kuala Lumpur Kepong Bhd’s (KLK) net profit plummeted 84.9% to RM84.10 million in the third quarter ended June 30, 2023 (3QFY2023) from RM558.27 million a year ago, due to weaker average selling prices of crude palm oil (CPO), palm kernel and higher CPO production cost. The weaker quarterly performance was also attributed to a net loss of RM8.7 million, from a net gain of RM96.9 million in 3QFY2022, from fair value changes on outstanding derivative contracts. Quarterly revenue fell 26.5% to RM5.11 billion from RM6.96 billion, dragging earnings per share to 7.80 sen from 51.80 sen a year prior, the palm oil giant said in its filing on Thursday (Aug 24). KLK’s manufacturing segment reported a loss of RM73.7 million due to a drop in revenue to RM4.32 billion and a loss incurred by the oleochemical division, which was impacted by eroded demand and profit margin. However, its property segment’s profit increased to RM19.3 million, aided by higher revenue at RM61.6 million, while its investment segment’s loss narrowed to RM36.8 million from RM54.4 million a year ago, mainly attributable to lower interest expenses arising from a drop in borrowings. — by Priyatharisiny Vasu
friday A UGUST 25, 2023 11 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): Singapore’s largest self-storage operator, StorHub Group, is planning to open up to eight storage facilities in Malaysia over the next two years, targeting key gateway cities nationwide. As part of its expansion exercise, the group has announced its acquisition of a major stake in Malaysian self-storage company, Flexi Storage, leading to the rebranding of all Flexi Storage facilities to StorHub Self Storage Malaysia. StorHub group chief investment officer David Chin said the group is looking at several areas, including Klang Valley, Penang and southern Johor for its expansion. “Malaysia has been identified as a key growth market, as the StorHub Group sees rapid urbanisation changing the way consumers and businesses perceive living space or real estate. “The country has tripled its urbanisation rate over five decades from 28.4% in 1970 to 75.1% in 2020, with Selangor having the largest urban population at 6.7 million,” he said at the launch of the fourth StorHub Self Storage facility here, on Thursday (Aug 24). Singapore’s StorHub Group to open eight selfstorage facilities in Malaysia over next two years KUALA LUMPUR (Aug 24): There is a need to increase local workforce in the construction industry to increase job opportunities for locals and reduce dependency on foreign workers, said Deputy Human Resource Minister Mustapha Sakmud. In his address at the opening ceremony of the Master Builders Association Malaysia (MBAM) Human Resources Conference 2023 with the theme “Investment in Human Capital” at Kuala Lumpur Golf & Country Club, Kuala Lumpur, on Thursday (Aug 24) morning, Mustapha said as Malaysia is a country that prioritises economic progress, it is necessary to emphasise the provision of more local workers in the construction industry. “This step not only provides employment opportunities for our local people, but also helps reduce dependency on foreign workers. In this context, initiatives to improve the skills of local workers become critical to meet the needs of the industry while providing opportunities for local people, including the youth, through Technical and Vocational Education and Training (TVET) to grow in this field,” he said. MBAM President Oliver Wee in his opening speech said many Malaysian youths are still hesitant in pursuing a career in the construction industry till this day. “Construction jobs, which are often known as 3D — dirty, dangerous and difficult — have forced the youth to opt for more intellectually demanding careers or those that are seen as more white-collar. “Construction works which are still subjected to a deeply ingrained stereotype accompanied by issues such as forced labour have made it a non-viable career option. However, we acknowledge the Ministry of Human Resources’ efforts in combating the issues of forced labour through the ratification of the Protocol of 2014 to the Forced Labour Convention and the adoption of the National Action Plan on Forced Labour (2021-2025).” Wee added that TVET programmes are designed to bridge the gap between academic learning and practical application, and the success of TVET in producing jobready professionals in the construction sector hinges on the collaboration between Increase local workforce in construction industry, says deputy HR minister by Chai Yee Hoong theedgemalaysia.com Bernama educational institutions and construction industry players. During the press conference, Mustapha noted that the government is targeting to produce 35% of the skilled workforce in the economy from the current 28% through efforts such as TVET programmes. “We hope more youths will register with TVET institutes near them. The employability for TVET graduates is very high, around 95% will find employment.” MBAM Secretary General Datuk Astaman Abdul Aziz added that a Government-Industry TVET Coordination body has also been set up as a company limited by guarantee to narrow the mismatched skills gap between the demand and supply of the country’s workforce. Meanwhile, the one-day conference will feature topics on mental health in construction, issues and challenges on workforce recalibration programme, claiming and utilisation of contribution by the construction industry, direction of TVET in construction, TVET in Malaysia and interview skills for HR. “Through this conference we’ll be able to enhance the awareness of construction industry players on the latest government policies as well as on the current issues related to the management of human resources in the construction industry, namely managing the foreign workers and attracting new working generation to the construction industry through TVET,” Wee said. Since Flexi Storage began operating in 2015, the company has provided secure and flexible storage for personal and business use to more than 1,600 customers, said Desmond How, StorHub Self Storage Malaysia’s chief executive officer (CEO) and joint founder of Flexi Storage. “In Malaysia, we have observed close to 90% take-up of our facilities, which drives our growth trajectory. “Pandemic hobbies such as cooking and cycling also brought a wave of new customers who then decluttered to make way for a new interest,” he said. StorHub Self Storage Malaysia chief operating officer Alex Lee said the StorHub facility along the Old Klang Road is officially the company’s first facility in Malaysia to be located within a residential building. With the latest facility, he said StorHub Malaysia now offers over 1,000 self-storage units, spanning over 85,000 square feet (sq ft) of gross floor area (GFA), to cater to the self-storage needs of neighbouring communities. Read the full story starhub.com.sg
friday A UGUST 25, 2023 12 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 24): The High Court (Appellate and Special Powers division) has on Thursday (Aug 24) granted leave (permission) to Cekap Urus Sdn Bhd, a joint venture (JV) company owned by tycoon Tan Sri Vincent Tan Chee Yioun’s Berjaya Group and Naza Group, to officially mount a legal challenge over the termination of a vehicle fleet project by the government. Judge Datuk Ahmad Kamal Md Shahid ordered the matter to be heard on its merits after federal counsel Mohammad Sallehuddin Md Ali, who appeared for the Finance Court allows Berjaya-Naza JV to challenge MOF’s termination of vehicle fleet project KUALA LUMPUR (Aug 24): The prosecution in Datin Seri Rosmah Mansor’s second criminal trial where she is facing 17 charges of money laundering and tax evasion told the High Court on Thursday (Aug 24) that she has no independent source of income, yet had large sums of money deposited into her current account in Affin Bank Bhd. Deputy public prosecutor (DPP) Ahmad Akram Gharib said Rosmah was not gainfully employed, but the prosecution noticed that the monies were deposited through Roslan Sohari, who was at the time the residential house manager of Seri Perdana complex in Putrajaya. Akram said the first 12 charges (concerning money laundering) pertain to deposits to this account and they were never disclosed as revenue, and were deposited and utilised by her. The DPP said Rosmah had made false statements concerning the monies paid into her account when she was questioned by Malaysian Anti-Corruption Commission (MACC) officers. “The prosecution will produce as part of its case, statements recorded from the accused under Section 32(3) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). “It is the prosecution’s case that when the totality of the evidence is considered as a whole, the conduct of the accused in all the circumstances of the case fairly supports the irresistible inference that the deposits in question were proceeds of unlawful activity contrary to Section 4(1) (a) of AMLA,” he said The following is the full excerpt of the opening statement: 1. The accused is the wife of Datuk Seri Mohd Najib Bin Tun Hj Abdul Razak (Najib Razak), the former prime minister of Malaysia. At all times material to the charges before the court, the accused was not gainfully employed. She therefore had no independent source of any lawful income. Yet, during the relevant period she caused to be deposited large sums of money into her current account no. 10-002000005-8 (account 0058) at Affin Bank Bhd. The sums deposited are wholly disproportionate to the accused’s means. The accused used the services of one Roslan Bin Sohari’s to make these deposits on her behalf. Roslan was at all material times, the residential house manager of the Seri Perdana Complex in Putrajaya. The monies comprised in these deposits form the subject-matter of the first to 12th charges in this case. For completeness, it must be said that the monies in question were never disclosed [as] revenue as required by written law. Neither was any income tax ever paid on these monies. 2. The monies deposited as aforesaid were subsequently utilised by the accused to pay telephone and credit card bills incurred by the accused and members of her family. She did this through cheques which she signed. 3. The prosecution will prove that the accused when questioned by MACC officers made false statements concerning Prosecution: Rosmah has no independent source of income and made false statements on money used the monies which she had paid into her account. The prosecution will produce as part of its case, statements recorded from the accused under Section 32(3) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). 4. It is the prosecution’s case that when the totality of the evidence is considered as a whole, the conduct of the accused in all the circumstances of the case fairly supports the irresistible inference that the deposits in question were proceeds of unlawful activity contrary to Section 4(1)(a) of AMLA. The evidence that the prosecution will produce will equally establish that the deposits in question can be reasonably believed to be property that are proceeds of unlawful activity. 5. As we have already said, the accused did not declare her deposits as revenue as required by written law. The accused thereby contravened Section 112 of the Income Tax Act 1967, which is a scheduled offence under AMLA. It is therefore a serious offence, the commission of which constitutes unlawful activity and is by definition, money laundering. 6. On the aforesaid facts the prosecution will establish that the accused committed the offence of money laundering as alleged in the charges against her. 7. With the leave of the court, the prosecution will call its first witness. Read also: Witness testifies that he deposited an envelope of cash into Rosmah’s account Apex court fixes Nov 29 to hear Rosmah’s application for leave to nullify graft case by Hafiz Yatim & Tarani Palani theedgemalaysia.com by Hafiz Yatim theedgemalaysia.com Ministry (MOF) and government, did not object to the JV company’s application. Counsel Chuar Kia Lin, who appeared with Liew Wei Shing for Cekap Urus, told Ahmad Kamal that the plaintiff is withdrawing the application for a stay of the government’s decision. Cekap Urus is 51% owned by Berjaya, 29% owned by Naza Corp Holdings Sdn Bhd and 20% owned by Tunku Tun Aminah Sultan Ibrahim Ismail. Read the full story
friday A UGUST 25, 2023 13 The E dge C E O m o rning brief home KUALA PILAH (Aug 24): Six new faces were among 10 Negeri Sembilan state executive councillors (exco) who were sworn in on Thursday (Aug 24) before Negeri Sembilan Yang Dipertuan Besar Tuanku Muhriz Ibni Almarhum Tuanku Munawir. The swearing-in ceremony and presentation of appointment letters began at 10.15am at Istana Besar Seri Menanti here. Also present at the ceremony were Tunku Ampuan Besar Tuanku Aishah Rohani Tengku Besar Mahmud and Tunku Besar Seri Menanti Tunku Ali Redhauddin Tuanku Muhriz. Others present included Undang Luak Sungai Ujong Datuk Klana Petra Datuk Mubarak Dohak, Undang Luak Jelebu Datuk Mendika Menteri Akhirulzaman Datuk Maarof Mat Rashad, and Undang Luak Johol Datuk Johan Pahlawan Lela Perkasa Setiawan Datuk Muhammed Abdullah Also in attendance were Undang Luak Rembau Datuk Lela Maharaja Datuk Muhamad Sharip Othman, and Tunku Besar Tampin Tunku Syed Razman Tunku Syed Idrus Al-Qadri. At the ceremony, Menteri Besar Datuk Seri Aminuddin Harun said six of the exco members were new face,s while four were reappointed. The new members are Datuk Seri Jalaluddin Alias (senior exco), Noorzunita Begum Mohd Ibrahim, Datuk Ismail Lasim, Mustapha Nagoor, Datuk Mohd Faizal Ramli and Tengku Zamrah Tengku Sulaiman. Those reappointed are Teo Kok Seong, Nicole Tan, J Arul Kumar and S Veerapan. The Pakatan Harapan (PH) and Barisan Nasional (BN) alliance formed the state government, after capturing 17 and 14 seats respectively in the Aug 12 state elections, while Perikatan Nasional (PN) took five seats. Six new faces among 10 Negeri Sembilan exco members sworn in PUTRAJAYA (Aug 24): The Election Commission (EC) has fixed Oct 7 as polling day for the Pelangai state seat by-election in Pahang. EC chairman Tan Sri Abdul Ghani Salleh said nomination and early voting for the by-election have been fixed for Sept 23 and Oct 3 respectively. He announced this at a press conference after chairing a special EC meeting at Menara SPR here on Thursday (Aug 24) to decide the important dates related to the Pelangai state seat by-election. The Pelangai state by-election was called, following the death of its incumbent Datuk Seri Johari Harun, 53, who was killed in the plane crash near Bandar Elmina, Shah Alam on Aug 17. Apart from Johari, who was also Pahang Local Government, Housing, Environment and Green Technology Committee chairman, nine others died in the crash involving the Beechcraft Model 390 (Premier 1) aircraft. The Pelangai by-election is the fourth by-election after the 15th general election (GE15) in November last year. Abdul Ghani said the electoral roll (DPPR) that will be used for the Pelangai by-election is up to date until the May 2023 supplementary DPPR, which was updated until Aug 17, 2023. “The DPPR for the Pelangai by-election contains a total of 16,456 voters, consisting of 16,417 ordinary voters, 36 policemen and three overseas absentee voters,” he said. He said the estimated cost of the by-election is RM2.1 million. Abdul Ghani said a total of 312 staffers will be appointed to handle the by-election process and that a returning officer who will be assisted by three assistant returning officers have been appointed to carry out the by-election. He said nine normal polling centres with 30 voting streams will be in use on polling day, while one (polling) centre with a single stream for early voting. Abdul Ghani said the nomination centre and vote tallying centre for the by-election is Dewan Orang Ramai Felda Kemasul. He said the campaigning period has been set for 14 days, starting after the announcement of the candidates running on Sept 23 until 11.59pm on Oct 6, 2023. “Two election campaign enforcement teams have been set up by the EC to monitor campaign activities throughout the official campaigning period,” he said. The teams are made up of representatives from the Royal Malaysian Police (PDRM), local authorities and representatives of candidates contesting. EC: Pelangai by-election on Oct 7 BSKU chief off to Florida to send memory puck in Shah Alam crash for analysis Bernama Bernama Bernama Read the full story KUALA LUMPUR (Aug 24): The Air Accident Investigation Bureau (BSKU) team leader will leave for the US on Thursday (Aug 24) evening, to get the cockpit voice recorder (CVR) memory puck of the Beechcraft Model 390 (Premier 1) extracted and analysed by a laboratory in Florida. Transport Minister Anthony Loke said the data analysis will be processed as early as Monday (Aug 28)morning (US time) because all preparations, including clearance from the original equipment manufacturer (OEM) laboratory, can be obtained within these two days. “The BSKU chief will leave for Florida at 7pm as his visa was just approved this morning and he is expected to be in the US for a few days. “On Monday morning, together with the OEM laboratory team, he will open up the memory puck, extract and analyse the data and then return home to make a report,” he told a press conference here on Thursday. On views by some analysts that the chances of identifying the actual cause of the crash were slim as the CVR was badly damaged, Loke said everyone has their own opinions but the government was doing its best. “Stop making speulations. We are trying our best by going to the OEM lab to extract the data so before we get to the lab, don’t draw conclusions because we are committed to our duties to identify the cause of the crash,” he said. Meanwhile, he said the BSKU chief had assured that the initial report of the incident would be ready within 30 days of the crash. “We have to understand that the report cannot be rushed because it must follow Annex 13-Aircraft Accident and Incident Investigation, International Civil Aviation Organization (ICAO Annex 13) protocol. “So please give us some time,” he said. In the Aug 17 incident, a Beechcraft Model 390 (Premier 1) light aircraft, crashed onto the Guthrie Highway near Bandar Elmina in Shah Alam, killing all six passengers, two crew aboard and two others who were passing through the crash site.
friday A UGUST 25, 2023 14 The E dge C E O m o rning brief world (Aug 24): Nvidia Corp chief executive officer Jensen Huang, fresh off an upbeat quarterly report that sent his company’s shares soaring, dispelled one of investors’ biggest concerns: that chip production won’t keep up with demand. Though Nvidia didn’t give long-term projections Wednesday (Aug 23), Huang said that supply will “substantially increase for the rest of this year and next year.” The company relies on vendors such as Taiwan Semiconductor Manufacturing Co and Samsung Electronics Co for components, and a lack of adequate inventory was seen as a challenge to its growth run. In an interview Wednesday, Huang stressed that the company was doing everything it can to stay on top of surging demand. “We’re focused on increasing our supply,” Huang said. “We have to do that with great urgency, and we are.” Nvidia has a commanding lead in the market for artificial intelligence processors, which handle the heavy workloads needed to power tools like OpenAI’s ChatGPT. Its position has made it the world’s most valuable chipmaker — with a market capitalisation above US$1 trillion (Aug 24): Global trade volumes will grow at a “moderate pace” in the third quarter of the year, continuing the uptick from the prior period after two quarters of decline, the World Trade Organization said. The WTO’s periodic goods barometer jumped to 99.1 from the previous reading of 95.6 announced in May, the Geneva-based organisation said in a report published Thursday (Aug 24). The baseline of 100 indicates growth over the next quarter that’s in line with medium-term trends. Global trade growth poised for 3Q rebound — WTO by Bryce Baschuk Bloomberg High commodity prices, tighter monetary conditions, and anemic import demand have weighed on global trade volumes, the report said. In the first quarter, the volume of world merchandise trade fell 1% from a year earlier and 0.3% from the prior three-month period, it said. Going forward, WTO said that its projected trade growth of 1.7% for 2023, “is still attainable if trade picks up in the second half of the year as expected.” The institution said surging exports of autos have contributed to stronger-than-expected growth in Japan’s gross domestic product. The Japanese economy grew at a 6% annualised pace in the second quarter, with much of that expansion powered by external demand. Despite the WTO’s rosy outlook, leading economic indicators in the US and Europe are showing signs of slowing, partly due to continued interest rate hikes. Last month, Port of Los Angeles shipments fell 26.8% from a year earlier, and shipping companies like AP MollerMaersk A/S and CMA CGM SA warn that trade volumes will likely be depressed for the rest of 2023. Concerns about flagging trade growth may fester as China’s economic engine sputters. Weak Chinese economic data, and a worsening property crisis have compounded China’s sagging consumer demand for cars, chips and electronics. (RM4.6 trillion). The stock hit a record high on Thursday. And the shift to AI is only beginning, Huang said. Accelerated computing, which speeds through specific tasks by breaking them up into smaller parts and working on them in parallel, is taking over, he argues. “The big mega theme is that the world’s computer data centers are transitioning to a new model, from general purpose computing to accelerated computing,” he said. The Nvidia co-founder believes there’s a trillion dollars’ worth of data centre infrastructure around the world that has to make this change. The company reported sales of US$13.5 billion last quarter, more than double from a year earlier. Such broad shifts happen rarely and bring huge opportunities for companies that have the right products to exploit them, Huang said. “Every 15 years, you see a new platform shift,” he said. “It’s happening right now in real time.” Read also: Nvidia CEO’s fortune surges as high as US$46 bil on stock boom reuters Nvidia CEO dispels fears of a chip shortage amid AI boom by Ian King Bloomberg bloomberg
friday A UGUST 25, 2023 15 The E dge C E O m o rning brief world (Aug 24): Meta Platforms Inc, Google and X, formerly known as Twitter, will need to adhere to strict new content moderation rules in the European Union when a new law governing social media platforms becomes legally enforceable from Friday (Aug 25). Alphabet Inc’s Google said Thursday that it’s making several changes to comply with the EU’s Digital Services Act, including expanding access to data on targeting of online ads and disclosing more information about its content moderation operations for services like Google Search. It will also augment risk analysis for its largest platforms. Nineteen companies were designated “very large online platforms” and “very large online search engines” by the EU last spring, which means they had more than 45 million monthly users. These platforms now need to comply with rules that include restrictions on targeting ads to minors and using sensitive data like race or gender in serving ads. They will also be required to have sufficient numbers of content moderators in each EU language. The companies will have to submit risk assessments to the European Commission that detail how they mitigate the impact of harmful content on their platforms. Non-compliance could lead to fines as high as 6% of a company’s annual revenue, or even being banned from operating in the bloc. Nick Clegg, Meta’s president for global affairs, said the company has introduced new steps for Facebook and Instagram, including ending targeting of ads for teenagers based on their app activity. “It is critical that the DSA now maintains its primacy over existing and new national laws, to protect the clarity it has created for services, maintain consistency in the way tech companies are held to account, and preserve the harmonious way people experience our platforms across the region,” Clegg wrote in a blog post. No ‘free pass’ The EU’s internal market commissioner, Thierry Breton, recently met with the heads of Twitter, Meta and TikTok to discuss the rules. He warned these companies that they needed to do more work to get enough content moderators in place, especially ahead of an election in Slovakia. “Europe is now effectively the first jurisdiction in the world where online platforms no longer benefit from a ‘free pass’ and set their own rules,” Breton said Wednesday in a statement. “They are now regulated entities in the same way financial institutions are.” Google, Twitter, Facebook under EU scrutiny as new rules kick in LONDON (Aug 24): Global subsidies for fossil fuels rose by US$2 trillion (RM9.3 trillion) over the past two years to reach a record US$7 trillion in 2022, according to new estimates from the International Monetary Fund. The soaring costs, driven by post-pandemic consumption growth and by rising energy costs stemming from Russia’s 2022 invasion of Ukraine, are straining budgets, adding to pollution and exacerbating global warming, the IMF said in a report. “Subsidies for oil, coal and natural gas are costing the equivalent of 7.1% of global gross domestic product,” the IMF said. “That’s more than governments spend annually on education (4.3% of global income) and about two thirds of what they spend on healthcare (10.9%).” IMF: Total spending on fuel subsidies topped US$7 tril in 2022 by Libby George Reuters by Jillian Deutsch Bloomberg A variety of nations in Africa and elsewhere in the developing world have cut fuel subsidies in recent years due in part to rising debt and borrowing costs. Wealthier nations, where energy consumption is higher, face less financial pressure to cut subsidy costs. Explicit subsidy costs — what governments pay directly to keep electricity or pump prices artificially low — have more than doubled since 2020, to US$1.3 trillion. The IMF said that these costs are likely to fall now that energy prices have eased, which it said was an ideal time to scrap subsidies. “Falling energy prices provide an opportune time to lock in pricing of carbon and local air pollution emissions without necessarily raising energy prices above recently experienced levels,” it said. But an even bigger concern, the IMF said, are implicit subsidy costs, which are likely to keep rising as damage from a warming planet spreads. Consumers did not pay for over US$5 trillion of environmental costs last year, the IMF said. “We estimate that scrapping explicit and implicit fossil-fuel subsidies would prevent 1.6 million premature deaths annually, raise government revenues by US$4.4 trillion, and put emissions on track toward reaching global warming targets,” the IMF said. Subsidies for oil, coal and natural gas are costing the equivalent of 7.1% of global gross domestic product. It warned that implicit subsidies — the cost of damage from air pollution and global warming — account for the bulk of the costs and are likely to keep rising. bloomberg reuters
friday A UGUST 25, 2023 16 The E dge C E O m o rning brief world (Aug 24): US mortgage applications for home purchases dropped last week to an almost three-decade low, indicating residential real estate is reeling from the recent spike in borrowing costs. The Mortgage Bankers Association index of home-purchase applications fell 5% to 142, the lowest level since 1995. The Wednesday (Aug 23) data also showed that the contract rate on a 30-year fixed mortgage increased 15 basis points to 7.31% in the week ended Aug 18 — the highest since late 2000. Including a decline in refinancing activity, the overall measure of mortgage demand dropped 4.2%. Borrowing costs have continued to rise so far this week, and Mortgage News Daily, which updates more frequently, put the 30-year fixed rate at almost 7.5% on Tuesday. Mortgage rates are benchmarked to US Treasuries, and yields on those securities have been climbing as traders increasingly see a resilient economy keeping interest rates higher for longer. Federal Reserve Chair Jerome Powell is set to speak at the central bank’s annual Jackson Hole symposium later this week, and minutes from policymakers’ gathering last month showed most officials still saw significant upside risks to inflation, which could require further rate hikes. That’ll keep mortgage rates elevated and, along with still-high home prices, put further strain on a residential housing US home purchase applications hit lowest since 1995 on rate rise (Aug 24): The number of Americans filing new claims for unemployment benefits fell last week, as labour market conditions remained tight despite the Federal Reserve’s aggressive interest rate hikes. Initial claims for state unemployment benefits decreased by 10,000 to a seasonally adjusted 230,000 for the week ended Aug 19, the Labor Department said on Thursday (Aug 24). The previous week’s level was revised up modestly by 1,000. Economists polled by Reuters had forecast 240,000 claims for the latest week. The labour market is continuing to defy expectations in the face of the Fed’s aggressive interest hikes since March 2022, as employers hoard workers after struggling to find labour during the Covid-19 pandemic. Labour market strength and receding inflation are fanning optimism that the economy could avoid a recession. The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 9,000 to 1.702 million during the week ending Aug 12, the claims report showed. These so-called continuing claims remain low by historical standards, indicating that some laidoff workers are experiencing short spells of unemployment. WASHINGTON (Aug 24): The US Justice Department said on Wednesday (Aug 23) it has seized over US$1.4 billion (RM6.5 billion) in Covid-19 relief funds that criminals had stolen, and charged over 3,000 defendants with crimes in federal districts across the country. The Justice Department disclosed the results of a nationwide enforcement action to combat coronavirus fraud, including federal criminal charges against 371 defendants for offences related to over US$836 million in alleged Covid fraud. “This latest action, involving over 300 defendants and over US$830 million in alleged Covid-19 fraud, should send a clear message: the Covid-19 public health emergency may have ended, but the Justice Department’s work to identify and prosecute those who stole pandemic relief funds is far from over,” US Attorney General Merrick Garland said in a statement. A total of 119 defendants pleaded guilty or were convicted at trial during the sweep, according to the Justice Department. The US is probing many fraud cases pegged to US government assistance programmes. In May 2021, Garland launched a Covid fraud enforcement task force. Last year, the US Justice Department tapped federal prosecutor Kevin Chambers to lead its efforts to investigate alleged fraud schemes targeting pandemic assistance programmes. Over US$200 billion from the US government’s Covid-19 relief programmes were potentially stolen, a federal watchdog said in late June, adding that the US Small Business Administration (SBA) had weakened its controls in a rush to disburse the funds. In September 2022, the inspector general for the US Labor Department said fraudsters likely stole US$45.6 billion from the US’ unemployment insurance programme during the coronavirus outbreak by applying tactics like using Social Security numbers of deceased individuals. Earlier this year, a separate watchdog report said the US government likely awarded about US$5.4 billion in Covid-19 aid to people with questionable Social Security numbers. US jobless claims fall as labour market remains tight US says stolen Covid relief funds seized so far top US$1.4 bil by Safiyah Riddle Reuters by Kanishka Singh Reuters by Augusta Saraiva Bloomberg market that had been showing promise earlier in recent months. The latest housing data further illustrate the trend — homeowners are reluctant to move and take on a higher mortgage rate, so prospective buyers are seeking out new construction instead. A separate report Wednesday showed new-home sales rose last month to the highest level in a over a year after downward revisions to prior months. The MBA’s overall gauge of mortgage applications, which also includes refinancing, fell to 184.8, near the lowest level since 1996. The survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US. bloomberg
friday A UGUST 25, 2023 17 The E dge C E O m o rning brief world DUBAI (Aug 24): Oil power Saudi Arabia’s entry to the BRICS group of nations highlights its ambitious drive to become a heavyweight on the global stage, creating a counter to its decades-old alliance with the United States, once seen as ironclad. The kingdom anticipates more cooperation with BRICS nations, its foreign minister said on Thursday, after the group invited Saudi Arabia, United Arab Emirates, Iran, Egypt and Argentina to join. “We look forward to develop this cooperation to create new developmental and economic opportunities and elevate our relationship to the aspired level,” Prince Faisal bin Farhan told a BRICS summit. Saudi Arabia, one of the most powerful and influential Arab states, and its neighbour the UAE, have increasingly pursued their own paths after concerns that the US is less committed to the strategic region’s security. “We’re seeing Saudi disregarding US interests in several areas: the Saudi-Russian oil market partnership, in Riyadh’s tightening relationship with China, and in the kingdom’s spate of refusals to crank up oil production when Washington asks,” said Jim Krane, research fellow at Rice University’s Baker Institute in Houston. “It’s been a long time now since Saudi Arabia emerged from under the US shadow and the kingdom has been charting an increasingly nonaligned path that puts it at odds with US interests.” China, Saudi Arabia’s biggest oil customer, has led calls to expand the emerging market powers bloc — until now made up of Brazil, Russia, India, China and South Africa — to become a counterweight to the West. Underscoring shifting geopolitics, Saudi Arabia hosted Chinese President Xi Jinping for a visit in December after US President Joe Biden failed on a trip to the kingdom to convince it to boost oil output to tame high US gasoline prices. Krane said pricing oil in non-dollar currencies was Washington’s biggest worry. “China has been pressing Saudi Arabia to price oil in renminbi for some time,” he said. “The Biden administration is pursuing this issue within the Abraham Accords framework. So the kingdom appears to be in the enviable position of “balancing” between Beijing and Washington, going with whichever side offers the biggest prize.” The Abraham Accords were US-brokered deals that normalised ties between Israel and Gulf states the United Arab Emirates and Bahrain. “The leadership sees BRICS as one of the important groupings that merits greater attention from Riyadh, given the importance of China/India in the global order,” said Ayham Kamel, Middle East and North Africa head at Eurasia Group. “However, Riyadh is not exclusively focused on BRICs and is looking at G20 and other forums as key for Saudi Arabia’s strategy of increasing its geopolitical influence.” Saudi Arabia eyes world stage after BRICS invitation JOHANNESBURG (Aug 24): Leaders of the BRICS group of developing nations have invited Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates to join, in a move aimed at growing the clout of a bloc that has pledged to champion the “Global South”. Expansion could also pave the way for dozens of interested countries to seek admission to BRICS — currently Brazil, Russia, India, China and South Africa — at a time when geopolitical polarisation is spurring efforts by Beijing and Moscow to forge it into a viable counterweight to the West. The new candidate members were announced by South African President Cyril Ramaphosa, who is hosting a summit of BRICS leaders. “BRICS has embarked on a new chapter in its effort to build a world that is fair, a world that is just, a world that is also inclusive and prosperous,” he said. The new candidates will be formally admitted as members on Jan 1, 2024. Ramaphosa and Brazilian President Luiz Inacio Lula da Silva left the door open to the possibility of admitting other new members in future. “We have consensus on the first phase of this expansion process and other phases will follow,” Ramaphosa said at a media briefing. Lula said globalisation’s promises had failed, adding that it was time to revitalise cooperation with developing countries as “there is a risk of nuclear war”, an apparent allusion to growing tensions between Russia and the West over the Ukraine conflict. United Arab Emirates’ President Mohammed bin Zayed, whose country is already a member of the bloc’s New Development Bank (NDB), said he appreciated the inclusion of his country as a new member. “We look forward to a continued commitment of cooperation for the prosperity, dignity and benefit of all nations and people around the world,” he posted on messaging platform X, formerly known as Twitter. Pledge to rebalance world order The debate over enlargement has topped the agenda at the three-day summit taking place in Johannesburg. And while all BRICS members publicly expressed support for growing the bloc, there were divisions among the leaders over how much and how quickly. Though home to about 40% of the world’s population and a quarter of global BRICS invites Saudi, Iran, UAE and others to join developing world bloc gross domestic product, BRICS members’ failure to settle on a coherent vision for the bloc has long left it punching below its weight as a global political and economic player. “This membership expansion is historic,” China’s President Xi Jinping said in remarks following the announcement on enlargement. “It shows the determination of BRICS countries for unity and cooperation with the broader developing countries.” More than 40 countries have expressed interest in joining BRICS, say South African officials, and 22 have formally asked to be admitted. They represent a disparate pool of potential candidates motivated largely by a desire to level a global playing field many consider rigged against them. They are attracted by BRICS’ promise to rebalance world bodies dominated by the United States and other wealthy Western states. Indian Prime Minister Narendra Modi said the bloc’s expansion should be an example to other global institutions founded in the 20th century that have become outdated. “The expansion and modernization of BRICS is a message that all institutions in the world need to mould themselves according to changing times,” he said. Read also: Egypt president Sisi looks forward to ‘raising the voice of countries in the south’ by Carien du Plessis Reuters by Yousef Saba & Hadeel Al Sayegh Reuters
friday A UGUST 25, 2023 18 The E dge C E O m o rning brief world MOSCOW (Aug 24): Crash investigators on Thursday picked through the wreckage of a jet said to have been carrying Russian mercenary chief Yevgeny Prigozhin that crashed with no survivors, two months after he led a mutiny against the army leadership. Investigators opened a criminal probe but there was no official word on what may have caused Wednesday evening’s crash, or even official confirmation of Prigozhin’s death beyond a statement from the aviation authority saying he was on board. The Kremlin and the Defence Ministry also made no comment on the fate of Prigozhin, head of the Wagner mercenary group and a self-declared enemy of the army top brass over what he said was its incompetent prosecution of Russia’s war in Ukraine. President Vladimir Putin made a virtual statement to a summit of the BRICS nations in South Africa which his foreign minister, Sergei Lavrov, was attending. Neither referenced the plane crash in which 10 people were said to have been killed. State media gave the disaster low-key coverage. The Embraer Legacy 600 executive jet, which had been flying from Moscow to St Petersburg and was reported to have also been carrying senior members of Prigozhin’s team, crashed near the village of Kuzhenkino in the Tver region north of Moscow. A Reuters reporter at the crash site on Thursday morning saw men carrying away black body bags on stretchers. Part of the plane’s tail and other fragments lay on the ground near a wooded area where forensic investigators had erected a tent. Residents of Kuzhenkino said they had heard a bang and then saw the jet plummet to the ground. One villager, who gave his name as Anatoly, said: “In terms of what might have happened, I’ll just say this: it wasn’t thunder, it was a metallic bang — let’s put it that way.” Unnamed sources told Russian media they believed the plane had been shot down by one or more surface-to-air missiles. Reuters could not confirm that. Mourners left flowers and lit candles near Wagner’s offices in St Petersburg. A Telegram channel linked to Wagner, Grey Zone, pronounced Prigozhin dead on Wednesday evening, hailing him as a hero and a patriot who it said had died at the hands of unidentified people it called “traitors to Russia”. Amid the absence of verified facts, some of his supporters have pointed the finger of blame at the Russian state, others at Ukraine, which was due to mark its Independence Day on Thursday. Whoever or whatever was behind the crash, his death would rid Putin of someone who had mounted the most serious challenge to his authority since he came to power in 1999. Prigozhin’s death would also leave Wagner, which incurred Putin’s wrath in June by staging a failed mutiny against the army top brass, leaderless and raise questions about its future operations in Africa and elsewhere. The plane showed no sign of a problem until a precipitous drop in its final 30 seconds, according to flight-tracking data. Wagner co-founder also on plane. Rosaviatsia, Russia’s aviation agency, published the names of all 10 people on board the downed plane, including Prigozhin and that of Dmitry Utkin, his right-hand man. Read the full story Investigators trawl site of plane crash believed to have killed Wagner boss Prigozhin TOKYO (Aug 24): Japan started releasing treated radioactive water from the wrecked Fukushima nuclear power plant into the Pacific Ocean on Thursday (Aug 24), a polarising move that prompted China to announce an immediate blanket ban on all aquatic products from Japan. China is “highly concerned about the risk of radioactive contamination brought by... Japan’s food and agricultural products,” the customs bureau said in a statement. The Japanese government signed off on the plan two years ago and it was given a green light by the UN nuclear watchdog last month. The discharge is a key step in decommissioning the Fukushima Daiichi plant after it was destroyed by a tsunami in 2011. Plant operator Tokyo Electric Power (Tepco) said the release began at 1:03pm local time (0403 GMT) and it had not identified any abnormalities. However, China reiterated its firm opposition to the plan and said the Japanese government had not proved that the water discharged would be safe. “The Japanese side should not cause secondary harm to the local people and even the people of the world out of its own selfish interests,” its foreign ministry said in a statement. Tokyo has in turn criticised China for spreading “scientifically unfounded claims.” It maintains the water release is safe, noting that the International Atomic Energy Agency (IAEA) has also concluded that the impact it would have on people and the environment was “negligible.” Japan has requested that China immediately lift its import ban on aquatic products and seeks a discussion on the impact of the water release based on science, Prime Minister Fumio Kishida told reporters. Fukushima wastewater released into the ocean, China bans all Japanese seafood Japan exported about US$600 million (RM2.7 billion) worth of aquatic products to China in 2022, making it the biggest market for Japanese exports, with Hong Kong second. Sales to China and Hong Kong accounted for 42% of all Japanese aquatic exports in 2022, according to government data. China customs did not give details on the specific aquatic products impacted by the ban and did not immediately respond to a request for comment. Decades long process The Fukushima Daiichi plant was destroyed in March 2011 after a massive 9.0 magnitude earthquake generated powerful tsunami waves causing meltdowns in three reactors. The first discharge totalling 7,800 cubic metres — the equivalent of about three Olympic swimming pools of water — will take place over about 17 days. Read the full story Read also: How Japan will release treated water from the Fukushima nuclear plant by Sakura Murakami Reuters by Andrew Osborn Reuters
friday A UGUST 25, 2023 19 The E dge C E O m o rning brief world JAKARTA (Aug 24): Indonesia’s central bank kept interest rates unchanged on Thursday (Aug 24), as expected, saying current levels are sufficient to keep inflation in check, while strengthening efforts to stabilise the rupiah currency. Bank Indonesia (BI) plans to issue new rupiah-denominated securities, using its holdings of government bonds as the underlying asset, as a new monetary instrument aimed at attracting foreign portfolio capital flows, Governor Perry Warjiyo said. BI kept the benchmark seven-day reverse repurchase rate at 5.75% for its seventh straight monthly policy review, as widely expected by economists surveyed by Reuters. Its two other main rates were also kept unchanged. BI has been trying to balance currency stability, keeping inflation in check and maintaining growth momentum in Southeast Asia’s largest economy as exports fall amid softening commodity prices and weakening global growth. There have been calls for BI to start considering rate cuts to shore up growth after inflation cooled to within BI’s target earlier than expected, but some economists say further tightening is still necessary to narrow rate differentials with US assets and prevent capital outflows. Guarding the rupiah “is our way to protect the domestic economy, inflation and growth from global spillovers”, Warjiyo told reporters. “All countries are experiencing currency depreciations, our focus is to stabilise the exchange rate through intervention,” the governor said, especially by intervening in the spot and domestic non-deliverable forward markets and relying on its new securities. “We have over 1,000 trillion rupiah of government bonds that we can use as underlying assets for the Bank Indonesia Rupiah Securities,” he said, adding that the notes will have 6-, 9- and 12-month maturities and are to be offered from Sept 15. The new notes can be traded by the public in the secondary market, including by foreign investors. Read the full story Bank Indonesia holds rates steady, plans new way to attract inflows (Aug 24): Türkiye raised interest rates far more than investors expected, triggering a rally in the lira, in the latest sign that a new lineup of central bankers favors aggressive moves to curb inflation running near 50%. The lira reversed losses after the decision and then extended its rally, appreciating as much as 7% against the US dollar. The currency was trading at 25.48 per greenback as of 3.52pm in Istanbul. The Monetary Policy Committee, under Governor Hafize Gaye Erkan, raised the benchmark one-week repo rate to 25% from 17.5%, the sharpest increase since 2018. Most economists polled by Bloomberg predicted a hike to 20%. It’s the latest indication that Türkiye’s new administration is prepared to move away from the unorthodox policies — including ultra-low borrowing costs — that were championed by President Recep Tayyip Erdogan but caused foreign traders to flee the country’s bond and stock markets en masse. Since winning reelection in May to take his rule into a third decade, Erdogan has pledged to shift course to rein in inflation and get investors back. Markets cheered the rate announcement on Thursday. Bank shares surged and the cost to insure Turkish debt against default for five years dropped below 400 basis points. The one week-repo rate is now at the highest since Türkiye started to use it as the sole benchmark. Official borrowing costs were last above 25% in 2004, when the central bank used the overnight borrowing and lending rates to conduct monetary policy. It was the MPC’s first decision since three new deputy governors were appointed late last month. They included a former adviser to the Federal Reserve Bank of New York and the ex-chief economist at one of Türkiye’s biggest private lenders. Piotr Matys, a currency analyst at InTouch Capital Markets in London, said the decision “sends a very strong signal that the central bank is determined to rein in inflation.” “ Türkiye’s central bank has stunned by agreeing a supersized rate hike that we see as a front-loaded move aimed at carrying a strong message of a change of policy from the newly installed MPC members. Looking ahead, we expect the central bank’s policy actions to be focused on further revisions and undoing in its complex set of regulations and practices,” Selva Bahar Baziki, an economist with Bloomberg Economics, said. The MPC said it “decided to continue the monetary tightening process in order to establish the disinflation course as soon Lira rallies as Türkiye stuns with biggest rate hike in years as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior.” Erkan, appointed in June, is bringing to an end an era of ultra-loose monetary policy. The governor has said annual price growth won’t peak until the second quarter of next year at about 60%. Apart from raising policy rates, the central bank has also taken other measures to increase the cost of money. Its latest regulation took aim at a government-backed savings program that protects account holders from any weakening of the lira. Officials now want them to convert to normal lira accounts. On Thursday, the MPC said that the recent regulations would “strengthen the monetary-transmission mechanism” and the committee would continue “to make decisions on quantitative tightening and selective credit tightening.” While Erkan has now brought rates to nearly triple their level when she took over in June, critics continue to question her commitment to tighter policy after two previous decisions underwhelmed traders’ expectations. Türkiye’s inflation-adjusted rates remain well in negative territory and among the lowest in the world. “It’s really hard for me to get excited about this hawkish surprise after two straight dovish surprises,” said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York. “Let’s talk after the next decision September 21 and if it delivers another large hike, perhaps things really have changed.” by Beril Akman Bloomberg by Fransiska Nangoy & Bernadette Christina Reuters
friday A UGUST 25, 2023 20 The E dge C E O m o rning brief world (Aug 24): Boeing has recently identified a new 737 MAX quality problem involving supplier Spirit AeroSystems that has resulted in improperly drilled holes on the aft pressure bulkhead, the planemaker said on Wednesday (Aug 23). Boeing said the defect will delay nearterm deliveries and the company is evaluating whether it could cause it to miss its annual delivery target of at least 400 Boeing 737s this year. Boeing shares were down 2.7% and Spirit shares fell 6.1% in afterhours trading. The new supply-chain snag is the latest issue to impede deliveries of the cash-generating MAX, following Boeing’s disclosure of a problem in April that Spirit had improperly installed brackets joining the aft fuselage to the vertical tail. Boeing confirmed that the latest issue will delay the first MAX 8 delivery to Malaysia Airlines, which had scheduled an Aug 28 arrival event. Spirit said that because it uses multiple suppliers for the aft pressure bulkhead, not all 737 fuselages are impacted by the new “elongated” hole problem. “Based on what we know now, we believe there will not be a material impact to our delivery range for the year, related to this issue,” Spirit said. So far, Boeing believes the defect is limited to a portion of its bestselling MAX 8 model, but the company is evaluating whether older-model 737 Next Generation jets are also impacted. It is unclear as to how many jets will need to be fixed, and how long it takes to complete rework will vary, depending on the condition of the aircraft, Boeing said. “We continue to deliver 737s that are not affected,” said Boeing, which said the issue was “recently” discovered but did not provide further clarification. Spirit said it has implemented changes to its manufacturing processes to correct the issue. The Federal Aviation Administration said it was aware of the issue, which does not affect safety of flight. Trade publication The Air Current first reported that Spirit was responsible for the work on the aft pressure bulkhead. New Boeing 737 MAX supplier defect to delay aircraft deliveries (Aug 24): Internet startup VNG Ltd filed for an initial public offering (IPO) in the US, making it the first Vietnamese technology company to seek a listing in New York and adding to a diversifying roster of companies planning listings, as equity markets thaw. VNG, which plans to offer almost 22 million shares in the IPO, will set a proposed price range in a later filing with the US Securities and Exchange Commission. It said in its filing on Wednesday that VNG will continue to be controlled by its founders, Le Hong Minh and Vuong Quang Khai. VNG will own 49% of VNG Corp, the Vietnamese operating company. VNG aims to raise about US$150 million in the IPO that could take place as soon as September, Dow Jones reported, citing people familiar with the matter. Formerly known as Vinagame, VNG Corp had its start as a game publisher in 2004. It develops and publishes its own titles, as well as local versions of international hits, and has gradually expanded to a wide range of services, such as music sharing, video streaming, messaging, a news portal and mobile payments. It has been exploring going public in the US since at least 2017. Its messaging app, Zalo, has won over Meta Platform Inc’s Facebook Messenger to become the most-used chatting platform in Vietnam since 2020. Zalo has 75 million monthly active users, according to a statement. “We were born after the war, in a nation that had found peace and unity, but was still struggling with under-development and isolation,” VNG’s founders said in a letter to investors, included in the prospectus. “Little did we know how lucky we were when the Internet arrived in Vietnam in the middle of the 1990s. The world magically and suddenly opened the door for us.” VNG Ltd’s IPO would follow this month’s US debut of Vietnamese electric-vehicle maker VinFast Auto Ltd, after Internet startup VNG files to become first Vietnam tech firm to go public in US it completed a merger with blank-cheque company Black Spade Acquisition Co in a deal valuing it at US$23 billion. A listing by VNG would add momentum to an IPO market that has been warming in fits and starts. Chip designer Arm Holdings Ltd, majority owned by SoftBank Group Corp, is planning to go public in September, in what would be the year’s biggest IPO. San Francisco-based grocery delivery firm Instacart Inc, as well as marketing, data automation provider Klaviyo and footwear maker Birkenstock, are also preparing to file for IPOs, Bloomberg News has reported. VNG sees games as the spearhead of its global expansion plans, while also seeking to add revenue from artificial intelligence and cloud computing products, Minh, the company’s chief executive officer, said in an interview last year. Its gaming arm VNGGames has at least nine studios outside of Vietnam, including in Thailand, Singapore, Malaysia, Taipei and China. The offering is being led by Citigroup Inc, Morgan Stanley, UBS Group AG and Bank of America Corp. The company plans for its shares to trade on the Nasdaq Global Select Market under the symbol VNG. Once the listing is completed, the two founders will control 51% of the voting power through a dual-class share structure. Tencent Holdings Ltd will have a stake corresponding to 23% of the votes, while Singapore sovereign wealth fund GIC Pte Ltd will hold 5.4% of the votes. VNG reported a pretax loss of 614 billion dong (US$25.6 million) for the six months ended June 30, according to the filing. Total revenue for the period was 3.96 trillion dong. by Nguyen Xuan Quynh & Michael Hytha Bloomberg by Valerie Insinna & David Shepardson Reuters A listing by VNG would add momentum to an IPO market that has been warming in fits and starts. bloomberg
friday A UGUST 25, 2023 21 The E dge C E O m o rning brief world (Aug 24): The prospect of global interest rates remaining higher for longer is tipping the case for many investors to switch into bonds from stocks. Fixed income offers a 180-basis-point yield premium over the dividend returns from stocks, according to data compiled by Bloomberg. That’s the widest in 15 years, and the gap is likely to persist or even widen as traders bet that the era of low rates has come to an end. Investors willing to make that switch have had to stomach a brutal bond selloff that shows few signs of easing. The latest EPFR Global data suggest that the shift, even if costly in recent months, is happening as debt funds reeled in their 21st consecutive week of inflows, while their stock counterparts recorded outflows of around US$2.2 billion (RM10.2 billion). In major markets, investors expect yields to return to levels seen before the global financial crisis. “Even the investment-grade bonds are giving you equity-like returns,” with half the volatility, Sanjay Guglani, chief executive officer at Silverdale Capital Pte Ltd, a Singapore-based fund manager who manages about US$1 billion of assets, told Bloomberg Television. “This is a dawn of a new era for fixed income, we never had such fantastic yields for almost 20 years.” Global bonds are offering an average yield of 4.0%, data compiled by Bloomberg show, almost twice as much as the 2.2% dividend return for the MSCI ACWI Index. Fidelity International points out that positive real yields make the case for Treasuries even more compelling. The next cue for traders is likely to come when the world’s top central bankers gather at the annual Jackson Hole symposium from Thursday to discuss the outlook for monetary policies. Federal Reserve Chair Jerome Powell is slated to speak Friday. The years following the global financial crisis, when policymakers were looking to juice up economies and combat anaemic price pressures with ultra-low interest rates, were the heyday for stocks, according to the metric comparing bond yields and dividend yields. But the relationship reversed in early 2022, as the Fed kicked off its most aggressive tightening campaign in four decades. That’s because investors are betting higher borrowing costs will stymie economic growth and crimp corporate profits. The prospect that borrowing costs may rise further — with Fed minutes published on Aug 16 showing rate setters remain largely concerned about inflation — has pummelled equities in recent weeks. MSCI’s gauge of developed and emerging market stocks has fallen over 5% so far this month. “We are seeing across regions, some shifts from equity to buy high-quality credit,” said Adam Whiteley, head of global credit at London for BNY Mellon Corp’s Insight Investment. “Under the current environment of higher inflation and economic uncertainty, investors are definitely looking at bonds as a relatively safe asset that can offer an alternative to stocks.” But, there’s still significant debate over where policy rates are headed. Treasury yields took a tumble on Wednesday as US data trailed economists’ forecasts and Citigroup Inc noted that a short squeeze may be emerging after the recent ramp-up in bearish bets. In contrast, equity traders had reason to cheer after a bullish earnings forecast from Nvidia Corp spurred a rally in S&P 500 and Nasdaq 100 futures. The chipmaker’s shares soared 10% in US post-market trading Wednesday after it delivered a third-straight sales forecast that surpassed Wall Street estimates. Sceptics also note that Japan is an outlier. Equity funds recorded a 10th week of inflows in the week ended Aug 16, according to data from EPFR. Meanwhile, debt funds had the biggest inflow in two years in the week ended Aug 9. This came on the heels of a move by the Bank of Japan in July to loosen its grip on bond yields — a decision that’s expected to boost the yen over time and make domestic assets more attractive. The positive sentiment pushed the yield spread between the bonds and stocks to near the narrowest in more than two years. Other than Japan, Asia may offer a value proposition for those arguing the case for equities. Payout ratios in the region are some of the lowest globally, “so the longer-term story for dividend growth for equities here is very compelling”, said Sat Duhra, a fund manager at Janus Henderson Investors. Bond buyers haven’t had it this good since the financial crisis (Aug 24): Singapore will raise S$2.8 billion (RM9.7 billion) of green bonds by reopening an existing 50-year maiden note it sold last year, adding resources to its climate-change efforts. The city-state — which boosted the size from an earlier target of at least S$1.8 billion — is set to raise S$2.75 billion via a placement to institutions and S$50 million through a public offering, according to a person with knowledge of the matter, who asked not to be identified as the information is private. The issuer earlier announced details of the sale on the website of the Monetary Authority of Singapore, or MAS, which is acting as a government agent in the sale. The offering underscores a rush by borrowers to finance projects that will provide environmental benefits and support sustainable development. Singapore joins Hong Kong and countries such as Germany and Italy in selling green bonds this year, pushing global issuance of the environmentally friendly notes by sovereigns and companies to over US$344 billion so far in 2023, up 18% from a year earlier, Bloomberg-compiled data show. Singapore will price the notes to yield 3.04%, inside an earlier target of about 3.15%. The sale is part of an effort, anSingapore joins green bond rush with US$2.1 bil offering nounced last year, to raise as much as S$35 billion of environment-focused financing by 2030. Proceeds from the deal will be used to finance expenditures in support of the Singapore Green Plan 2030, including the development of two routes on its electric rail network, according to a statement on the MAS website on Aug 21. MAS hired Citigroup Inc, DBS Bank Ltd, Oversea-Chinese Banking Corp, Standard Chartered Plc and United Overseas Bank Ltd for the placement to institutions, while DBS, OCBC and UOB are participating banks for the public offering. The note maturing in August 2072 traded above par at about 101 Singapore cents as of 2:11pm local time, according to data compiled by Bloomberg. That’s down from nearly 125 cents in May, but still higher than when priced at 98.976 cents. by Ameya Karve Bloomberg by Tassia Sipahutar & Ameya Karve Bloomberg
friday A UGUST 25, 2023 22 The E dge C E O m o rning brief world (Aug 24): Thailand’s Srettha Thavisin may soon find that winning the prime minister’s job was easier than running a coalition government made up of 11 parties previously seen as sworn enemies. After three months of post-election haggling, Srettha’s coalition — a mix of populist and conservative parties — is likely to be shaky, analysts say, since it was born out of a deal that centred around former prime minister Thaksin Shinawatra’s return from 15 years of exile. Thaksin, who was jailed upon arrival over corruption cases but may get a royal pardon, is the de facto head of the Pheu Thai party leading the coalition. Srettha — a former property tycoon and confidante of Thaksin who leaped from more than 30 years in the private sector to the country’s top political office — seemed to acknowledge the challenge he faces after being formally appointed prime minister. “You have to wait for the formation to be completed first and let us collectively, as a group, try to move this country forward,” the 61-year-old Srettha said. “Then you can judge whether it’s fragile or not.” The stability of the incoming government will be a key metric tracked by foreign investors, who have dumped US$3.8 billion (RM17.64 billion) in Thai stocks this year amid the political uncertainty that followed the May general election. On a positive day for regional stocks, Thailand’s benchmark equity index was up about 0.6% on Thursday (Aug 24), while the baht gained about 0.4%. In a ceremony Wednesday (Aug 23), Srettha vowed to bring change to Thailand at what he called a “critical juncture” for the nation, saying his government’s policies will foster economic development and usher in changes at the macro as well as household levels. Srettha’s success or failure could depend on the final makeup of his ruling cabinet, which will help guide Thailand’s US$500 billion economy, the second-largest in Southeast Asia. That process is expected to be finalised in the coming days or weeks, with the new government in place in September. Thaksin’s return on Tuesday (Aug 22), which came just hours before Srettha won his majority in parliament, was made possible after the Pheu Thai party abandoned a previous alliance with the Move Forward party, the top vote-getter in the election. by Patpicha Tanakasempipat Bloomberg Coalition quagmire awaits new Thai leader after Thaksin’s return 2014 coup Pheu Thai’s move to align with conservative parties it had previously vowed not to work with effectively allowed the military-backed establishment that spent years undermining election wins by Thaksin and, later, his sister, to stay in power. Nearly 10 years after a coup paused democracy in Thailand, Srettha also faces doubts over whether he may be too inexperienced to navigate the nation’s complicated political landscape, which includes the royal family, a politically-active military and the mass of pro-democracy supporters who turned out for Move Forward and are angry at being out-manoeuvred for the prime minister’s post. “Srettha will likely be a fairly weak premier — a puppet serving both Thaksin and key establishment figures,” said Peter Mumford, Southeast Asia practice head at the Eurasia Group. “It seems likely that Srettha’s coalition will collapse before completing a four-year parliamentary term.” Balance of power A rough division of cabinet portfolios hinted at the complex power-sharing arrangement he’s going to balance. According to Pheu Thai, the party is set to install eight ministers, the same number as what’s divided between the three key pro-establishment groups — the Bhumjaithai Party of cannabis champion Anutin Charnvirakul and pro-military parties backed by former junta leaders Prayuth Chan-Ocha and Prawit Wongsuwan. “It’s clear that the ultimate winner of this deal is the establishment, because of the weight of the military and conservative elements in the coalition,” said Napon Jatusripitak, a visiting fellow at the ISEAS-Yusof Ishak Institute. Yet while most of the military-appointed Senate’s votes for Srettha came from members known to be aligned with Prayuth, those linked to Prawit largely abstained. That suggests the establishment may also be divided, which could signal an unstable coalition once governing begins. “If there are stability issues or failure of management, Pheu Thai will be the one that’s held accountable, not the other groups,” Napon said. Level of distrust Questions also remain over whether a coalition with such disjointed party ideologies can really work together. While Pheu Thai said all its partners agreed to implement its campaign pledges, those regarding rewriting the constitution and ending military conscription may become a source of friction. “There will be a high level of distrust between Pheu Thai and the parties that were in the outgoing military-backed administration, regardless of whatever deals have been done by Thaksin and key generals,” Mumford said. A dance to outmanoeuvre each other will set the tone for the incoming governing coalition. A crucial turning point is seen early next year, when the Senate’s power to pick prime ministers will expire under the current constitution, which was written after Prayuth’s coup in 2014 and designed to entrench establishment powers in Thai politics. “That would be a moment for Thaksin or Pheu Thai to reopen negotiations with the conservatives,” Napon said. Thaksin “may be thinking he’s just hanging in there until he emerges with the upper hand.” The stability of the incoming government will be a key metric tracked by foreign investors, who have dumped US$3.8 billion (RM17.64 billion) in Thai stocks this year. Srettha Thavisin, a former property tycoon and confidante of Thaksin Shinawatra who leaped from more than 30 years in the private sector to the country’s top political office, seemed to acknowledge the challenge he faces after being formally appointed prime minister. Bloomberg
friday A UGUST 25, 2023 23 The E dge C E O m o rning brief world Michael Jordan is richest NBA legend with a US$3.5 bil fortune by Amanda Albright & Devon Pendleton Bloomberg (Aug 24): Michael Jordan is the greatest basketball player of all time. And the richest. The National Basketball Association legend’s sale of his stake in the Charlotte Hornets this month cemented his net worth at an estimated US$3.5 billion, according to the Bloomberg Billionaires Index, which is calculating his fortune for the first time. Jordan, who led the Chicago Bulls to six NBA titles and won five MVP awards, is a cultural icon whose likeness, from his silhouette on shoes to his smiling face on US$100 collectible Wheaties boxes, is ubiquitous. The hall-of-fame player became the league’s first Black team owner in 2010 when he bought a majority stake in the Hornets, then called the Bobcats. But it was a licensing agreement with Nike Inc in the 1980s, when Jordan was still relatively unknown, that formed the foundation of his trailblazing fortune. The sale of Jordan’s Hornets stake follows a standout 2022 for sports team transactions and affirms the NBA’s status among the world’s most profitable leagues. Its franchises have soared in value in recent years as billionaires have used their vast wealth to become owners. Mat Ishbia, who founded wholesale mortgage lender UWM Holdings Corp, agreed last year to buy more than 50% of the Phoenix Suns in a record deal that valued the club at US$4 billion. Jordan sold his ownership in the Hornets to a group led by Gabe Plotkin, founder of Melvin Capital Management, and Rick Schnall, co-president of private equity firm Clayton, Dubilier & Rice. As part of the US$3 billion deal, Jordan retains anundisclosed minority stake, according to the team. Bloomberg’s estimate assumes he sold a 65% stake in the team and kept a less than 5% interest. “Now is the right time for me to hand over the reins,” Jordan, 60, said in an Aug 3 open letter to Hornets fans. “I’m excited to see what the future holds, and I look forward to supporting the team and the community in my new role for many years to come.” A spokesperson for Jordan’s family office declined to comment for this story. Mom’s advice Aside from the Hornets, much of Jordan’s wealth stems from his wildly successful Jordan Brand apparel line at Nike, which was the subject of this year’s Ben Affleck-directed film Air. His mother, Deloris Jordan, was integral in securing that deal, Jordan said in The Last Dance docuseries that aired on ESPN and Netflix. “My mother said, ‘You’re going to go listen. You may not like it, but you’re going to go listen,’” Jordan said in the docuseries. In 1984, he signed a five-year contract with Nike for US$2.5 million. The first Air Jordan model was introduced soon after. Last year, Jordan Brand recorded US$5.1 billion in revenue, representing almost 11% of Nike’s total sales, according to company filings. Thilo Kunkel, director of Temple University’s Sport Industry Research Center, said there’s “wild speculation” about how much Jordan has earned from Nike. Typically, such deals feature royalties plus bonus-style payments when certain sales thresholds are met. “If it was its own brand, it would have a pretty decent market cap rivaling some of the Under Armours of the world,” he said. “It’s almost like a luxury sports brand at this point.” The Bloomberg index calculation estimates that he earned a 5% royalty on Air Jordan’s sales as well as income from endorsement deals and his NBA salary. Nike didn’t respond to requests for comment about Jordan’s earnings. Like Mike In recent years, other athletes have pursued their own long-term brand deals with sports apparel lines in the hopes of being “like Mike.” Under Armour Inc announced in March that it reached a long-term deal with NBA star Steph Curry for his Curry Brand that includes an annual cash payment, incentives, royalties and stock. And NBA star LeBron James built up a roughly US$1.5 billion fortune through sponsorships, investments and his own consumer and entertainment business, the SpringHill Co, according to the index. Simeon Siegel, an analyst for BMO Capital Markets, said the Jordan brand has “transcended” him as a player. Many of its customers are too young to have even seen him play professional basketball. “Jordan the person and Jordan the brand have helped shape Nike as well as the entire athletic apparel landscape,” he said. Then there are the other endorsements. He signed a 10-year, US$13.5 million deal with Gatorade, which resulted in a famous 1991 TV ad called “Be Like Mike.” He’s appeared on Wheaties boxes 19 times, more than any other athlete. In 1991, at the height of his career, the New York Times reported that he was earning between US$15 and US$20 million annually from deals with various brands. He’s also made bets on other sports-related businesses. In 2020, he launched Nascar’s 23XI Racing, whose roster includes Bubba Wallace, the circuit’s only black driver. That same year, Jordan was granted an equity interest in DraftKings Inc, where he serves as a special adviser to the board. The size of his stake in the sports-betting company, which started trading publicly in April 2020, is undisclosed. A spokesperson for DraftKings declined to comment. The earnings he received as a player are nothing to scoff at, either. He was paid more than US$90 million during his career with the Bulls and Washington Wizards, according to Spotrac, which tracks sports contracts. Read the full story Last year, Jordan Brand recorded US$5.1 billion in revenue, representing almost 11% of Nike’s total sales.
FRIDAY AUGUST 25, 2023 24 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 268.50 -0.005 0.050 -77.27 255.4 SAPURA ENERGY BHD 119.73 0.000 0.050 42.86 799.0 PERDANA PETROLEUM BHD 98.30 -0.020 0.215 72.00 477.0 RGB INTERNATIONAL BHD 91.00 -0.035 0.375 108.33 577.8 CN ASIA CORP BHD 82.60 -0.010 0.230 -6.12 56.3 VELESTO ENERGY BHD 52.08 0.005 0.240 60.00 1971.7 PARKSON HOLDINGS BHD 50.93 -0.030 0.335 148.15 384.9 SYSTECH BHD 45.14 -0.020 0.370 57.45 128.0 MY EG SERVICES BHD 40.65 0.005 0.810 -6.00 5998.4 GLOSTREXT BHD* 40.61 0.005 0.250 NULL 101.8 SARAWAK CONSOLIDATED 37.40 0.005 0.445 206.90 284.9 BINASAT COMMUNICATIONS BHD 35.95 0.030 0.345 13.11 134.0 WIDAD GROUP BHD 35.62 0.000 0.440 2.33 1362.4 BOUSTEAD PLANTATIONS BHD 34.50 0.000 1.370 112.40 3068.8 BUMI ARMADA BHD 33.62 -0.010 0.500 4.17 2961.3 NEXGRAM HOLDINGS BHD 30.26 0.005 0.015 -78.57 9.7 REACH ENERGY BHD 29.46 0.005 0.040 -11.11 85.2 JAKS RESOURCES BHD 28.78 -0.005 0.200 -14.89 458.0 CLASSITA HOLDINGS BHD 27.21 -0.005 0.070 -80.82 86.3 DOLPHIN INTERNATIONAL BHD 25.48 0.010 0.025 0.00 33.4 Data as compiled on Aug 24, 2023 *Glostrext was listed on Aug 15, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.010 100.00 259.8 100.00 36.8 DOLPHIN INTERNATIONAL BHD 0.025 66.67 25,481.7 0.00 33.4 BCM ALLIANCE BHD 0.015 50.00 452.0 -40.00 30.5 AE MULTI HOLDINGS BHD 0.015 50.00 200.0 -40.00 32.5 AT SYSTEMATIZATION BHD 0.015 50.00 2,880.2 0.00 101.8 METRONIC GLOBAL BHD 0.015 50.00 689.7 -25.00 23.0 NEXGRAM HOLDINGS BHD 0.015 50.00 30,262.6 -78.57 9.7 SMTRACK BHD 0.030 20.00 89.0 -40.00 36.1 TWL HOLDINGS BHD 0.035 16.67 5,668.3 0.00 157.4 TA WIN HOLDINGS BHD 0.040 14.29 1,272.8 -27.27 137.4 FITTERS DIVERSIFIED BHD 0.040 14.29 6,806.5 -42.86 93.7 REACH ENERGY BHD 0.040 14.29 29,462.3 -11.11 85.2 KOMARKCORP BHD 0.040 14.29 539.7 -27.27 46.2 BERJAYA ASSETS BHD 0.285 14.00 417.6 -1.72 729.1 XOX TECHNOLOGY BHD 0.045 12.50 1,550.9 0.00 40.2 MTOUCHE TECHNOLOGY BHD 0.045 12.50 60.0 -10.00 41.7 VIZIONE HOLDINGS BHD 0.050 11.11 77.6 -9.09 102.3 EA TECHNIQUE M BHD 0.265 10.42 20,322.1 55.88 140.6 MBM RESOURCES BHD 4.070 10.30 12,533.3 29.13 1590.9 CITRA NUSA HOLDINGS BHD 0.055 10.00 467.5 -15.38 39.6 Data as compiled on Aug 24, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) LAMBO GROUP BHD 0.015 -25.00 58.4 -72.73 23.1 IQZAN HOLDING BHD 0.020 -20.00 333.7 -42.86 4.4 ASIA BRANDS BHD 0.460 -17.86 4.1 -16.36 107 MQ TECHNOLOGY BHD 0.025 -16.67 444.6 -50.00 34.5 XOX NETWORKS BHD 0.025 -16.67 163 -16.67 28.4 ALAM MARITIM RESOURCES BHD 0.025 -16.67 225 0.00 38.3 HHRG BHD 0.270 -12.90 7,383.1 -43.16 232.6 SC ESTATE BUILDER BHD 0.035 -12.50 306.1 -22.22 37.6 GRAND CENTRAL ENTERPRISES 0.330 -12.00 1.0 -5.71 65.0 HONG SENG CONSOLIDATED BHD 0.050 -9.09 268,492.0 -77.27 255.4 CLASSIC SCENIC BHD 0.510 -8.93 3,724.4 -32.30 193.5 BOUSTEAD HEAVY INDUSTRIES 0.465 -8.82 98.5 12.05 115.5 SERSOL BHD 0.155 -8.82 11,873.3 -32.61 113.4 RGB INTERNATIONAL BHD 0.375 -8.54 90,996.8 108.33 577.8 PERDANA PETROLEUM BHD 0.215 -8.51 98,294.6 72.00 477.0 PAN MALAYSIA HOLDINGS BHD 0.055 -8.33 15,766.7 -21.43 51.1 TFP SOLUTIONS BHD 0.055 -8.33 77.3 -15.38 32.2 PARKSON HOLDINGS BHD 0.335 -8.22 50,934.2 148.15 384.9 PARLO BHD 0.120 -7.69 1,316.2 0.00 71.3 DIGISTAR CORP BHD 0.060 -7.69 84.6 -14.29 27.9 Data as compiled on Aug 24, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) ALLIANZ MALAYSIA BHD 16.140 -0.280 50.2 13.98 2,872.4 HEINEKEN MALAYSIA BHD 25.480 -0.240 214.2 1.11 7,697.5 HONG LEONG FINANCIAL GROUP 18.140 -0.220 79.8 -2.47 20,774.7 NESTLE MALAYSIA BHD 130.700 -0.200 91.4 -6.64 30,649.2 MALAYAN CEMENT BHD 3.850 -0.130 1,009.3 81.60 5,044.3 HARRISONS HOLDINGS MALAYSIA 8.500 -0.120 20.0 28.21 582.0 D&O GREEN TECHNOLOGIES BHD 3.680 -0.120 2,519.6 -14.02 4,556.5 PETRONAS DAGANGAN BHD 21.880 -0.120 745.8 -4.24 21,736.8 KUALA LUMPUR KEPONG BHD 22.400 -0.100 1,694.1 0.18 24,157.0 PETRONAS GAS BHD 17.040 -0.100 343.8 -0.47 33,717.6 ASIA BRANDS BHD 0.460 -0.100 4.1 -16.36 107.0 PANASONIC MANUFACTURING 21.200 -0.080 10.5 -7.42 1,287.8 KOTRA INDUSTRIES BHD 5.370 -0.080 104.9 -18.64 796.4 TROPICANA CORP BHD 1.110 -0.070 929.6 -13.28 2,515.6 YINSON HOLDINGS BHD 2.530 -0.070 903.1 4.12 7,353.9 FAR EAST HOLDINGS BHD 3.530 -0.060 2.0 -4.59 2,096.2 IMASPRO CORP BHD 5.600 -0.050 412.2 -4.27 448.0 CLASSIC SCENIC BHD 0.510 -0.050 3724.4 -32.3 193.5 HAP SENG PLANTATIONS HOLDINGS 1.900 -0.050 834.4 -2.06 1,519.4 CHIN TECK PLANTATIONS BHD 7.700 -0.050 7.0 -9.59 703.5 Data as compiled on Aug 24, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) MBM RESOURCES BHD 4.070 0.380 12533.3 29.13 1590.9 AURELIUS TECHNOLOGIES BHD 2.740 0.230 2158.9 49.73 1079.6 PPB GROUP BHD 15.940 0.180 219.3 -8.60 22,676.2 JCBNEXT BHD 1.570 0.110 35.0 22.66 207.3 EUROSPAN HOLDINGS BHD 1.480 0.110 214.2 30.97 65.7 YNH PROPERTY BHD 5.100 0.100 94.1 20.57 2695.2 RAPID SYNERGY BHD 23.480 0.100 70.7 47.12 2,509.9 MALAYSIAN PACIFIC INDUSTRIES 27.000 0.100 168.7 -6.12 5370.2 KESM INDUSTRIES BHD 7.430 0.090 1.1 5.84 319.6 DRB-HICOM BHD 1.570 0.090 4694.1 -1.88 3035.2 CENTRAL GLOBAL BHD 2.300 0.090 3282.9 154.14 363.5 CELCOMDIGI BHD 4.390 0.090 1803.9 9.75 51501.3 FRONTKEN CORP BHD 3.460 0.080 3686.0 12.34 5,440.5 UMW HOLDINGS BHD 4.620 0.070 4097.9 33.14 5,397.5 TIME DOTCOM BHD 5.690 0.070 1535.4 29.04 10508.5 SIME DARBY PLANTATION BHD 4.390 0.070 1007.2 -5.59 30,360.0 GREATECH TECHNOLOGY BHD 4.620 0.070 458.7 -4.55 5,791.5 GENETEC TECHNOLOGY BHD 2.360 0.070 1966.0 -1.26 1,785.7 UNISEM M BHD 3.280 0.060 531.9 18.84 5290.9 QL RESOURCES BHD 5.480 0.060 505.8 -0.54 13,336.4 Data as compiled on Aug 24, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 34,502.90 29.92 0.09 S&P 500 * 4,436.01 48.46 1.10 NASDAQ 100 * 15,181.28 33.22 0.22 FTSE 100 * 7,320.53 15.65 0.21 AUSTRALIA 7,182.11 33.69 0.47 CHINA 3,082.24 3.84 0.12 HONG KONG 18,212.17 366.25 2.05 INDIA 65,252.34 -180.96 -0.28 INDONESIA 6,899.39 -22.02 -0.32 JAPAN 32,287.21 276.95 0.87 KOREA 2,537.68 32.18 1.28 PHILIPPINES 6,225.78 46.15 0.75 SINGAPORE 3,180.72 6.54 0.21 TAIWAN 16,770.87 193.97 1.17 THAILAND 1,557.41 8.40 0.54 VIETNAM 1,189.39 16.83 1.44 Data as compiled on Aug 24, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,879.00-2.00 OIL US$ 82.41-0.80 RM/USD 4.6460 RM/SGD 3.4312 RM/AUD 2.9951 RM/GBP 5.8868 RM/EUR 5.0403