The Edge - 07 Mei 2024

HOME: Ministry introduces affordable programme to boost solar energy adoption in homes p2 Bursa Malaysia’s 2023 IPOs largely deliver gains without major exits p4 Ho Hup’s Flex project to be suspended, buyers refunded as Exsim buys land for RM110 mil p8 The Edge and its owner cease to be substantial shareholders of Star Media p9 WORLD: At US$2 mil per minute, US treasuries mint cash like never before p24 CEOMorningBrief TUESDAY, M AY 7 , 2 0 2 4 ISSUE 759/2024 theedgemalaysia.com ISRAEL STRIKES GAZA CITY OF RAFAH AFTER EVACUATION ORDER p18 Report on Page 2. Shell in talks to sell Malaysian fuel stations to Saudi Aramco — Reuters Appellate court reverses acquittal of ex-MMM deputy chairman for insider trading Report on Page 3. THE EDGE FILE PHOTO

tuesday may 7, 2024 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe 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] Shell in talks to sell Malaysian fuel stations to Saudi Aramco — Reuters Ministry introduces affordable programme to boost solar energy adoption in homes SINGAPORE (May 6): Energy giant Shell is in talks with Saudi Arabia’s state-owned Saudi Aramco to sell its gas station business in Malaysia, the second-largest such network in the country, four industry sources aware of the discussions said, and a deal could be worth up to US$1 billion (RM4.74 billion). Shell declined to comment on the talks but said Malaysia is an important country to the company. Saudi Aramco also declined to comment. London-based Shell wholly owns around 950 fuel stations across the Southeast Asian country, according to its website, with only Malaysia’s state-owned Petronas operating a bigger network. Talks began in late 2023 and a deal may be finalised in the coming months, one source said. Two sources briefed on the matter put a potential deal size at roughly RM4 to RM5 billion. In addition to its fuel stations, Shell sells industrial lubricants, produces crude oil and natural gas offshore of Sarawak and Sabah SHAH ALAM (May 6): The Ministry of Energy Transition and Water Transformation (Petra) has come up with the affordable “Solar BOLEH!” programme to enable more people to adopt solar energy by installing solar panels in their homes, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also energy transition and water transformation minister, said Petra is collaborating with the AEON Group, Bank Simpanan Nasional and SOLS Energy to implement the programme. He said the programme, under the People’s Solar Transition Initiative (Solar@Petra Initiative), aims to encourage more people to benefit from the national energy transition agenda and that it is specifically designed to expand domestic users’ access to solar installation schemes and available financing facilities in the market. Fadillah said that through this public-private collaboration, solar installation subscriptions can be easily made at Bernama home by Trixie Yap, Yantoultra Ngui & Ron Bousso Reuters states, and is a joint venture partner in two liquefied natural gas (LNG) ventures. The sale is part of CEO Wael Sawan’s efforts to focus the company’s operations on the most profitable businesses. Shell has said it would look to divest 500 gas stations this year and next. It is in the process of selling its Singapore refinery and petrochemical complex. Shell’s effort to sell its Malaysia fuel stations is consistent with its move to sell its refinery on Bukom Island in Singapore, which supplies the network, one of the sources said. Saudi Aramco does not have fuel stations in Malaysia, although it owns 50% of the 300,000-barrel per day (bpd) Pengerang refinery in Johor in a joint venture with Petronas, which sells fuel domestically and for export. Aramco operates petrol stations in Saudi Arabia and also operates fuel stations elsewhere in joint ventures with French major TotalEnergies and South Korea’s S-Oil Corp. AEON branches across the country, with special benefits offered to AEON cardholders, such as earning double reward points. “In the past, residential solar installations were typically done by those who could afford it because the cost was relatively high, but with the ‘Solar BOLEH!’ programme, we believe more people will respond to the call to support the energy transition agenda. “This wider access is also supported by BSN’s solar financing facility for public servants, as well as SOLS Energy’s zero-capital method for domestic users, making solar installation more affordable to the public,” he told reporters after launching the programme here on Monday. Earlier, in his speech, Fadillah said that the “Solar BOLEH!” programme complements the solar rebate programme introduced by the government in early April, the Solar for Rakyat Incentive Scheme (SolaRIS), which is currently being implemented by Tenaga Nasional Bhd (TNB). bloomberg

tuesday may 7, 2024 3 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): Malaysia’s central bank is unlikely to follow its counterparts in Indonesia and Philippines in raising interest rates when its monetary policy committee meets this week, HSBC said. The ringgit has been under pressure though a rate hike is not a “panacea”, HSBC said in a note. In fact, recent experience of some Asian central banks suggests that a rate hike would not necessarily turn the tide for the broad US dollar strength, the research house said. Bank Negara Malaysia (BNM) resisted pressures to raise the overnight policy rate last November, and “we expect the same this week”, HSBC said. The central bank will announce its monetary policy decision on May 9 after the third of six scheduled reviews for the year. BNM is widely expected to keep the rate unchanged at 3%, according to a survey of 18 economists by Bloomberg. In April 2024, Bank Indonesia unexpectedly raised its benchmark seven-day reverse repo rate by 25 basis points to 6.25% to support the tumbling rupiah. Bangko Sentral ng Pilipinas raised its key rate by 25 basis points in an off-cycle meeting in October 2023 amid the surging US dollar. HSBC said that there is little reason to raise or lower interest rates as inflation remains benign amid nascent economic recovery. BNM is expected to continue sounding “cautiously optimistic” and cite the turn in global trade cycle while keeping its wait-and-see approach on inflation pending better policy clarity, HSBC said. Overall, BNM is expected to continue to use “the same language” to reflect that it is comfortable with the current policy rate, HSBC added. Official March data showed milder-than-expected consumer inflation of 1.8% year-on-year due to slower increases in the price of food and healthcare. Government flash estimates, meanwhile, point to the economy expanding 3.9% in the first quarter from a year earlier. Malaysia unlikely to follow in Indonesia’s, Philippines’ rate hike footsteps — HSBC KUALA LUMPUR (May 6): The Securities Commission Malaysia (SC) said that the Court of Appeal has allowed its appeal against the acquittal of former Malaysian Merchant Marine Bhd (MMM) executive deputy chairman Datuk Ramesh Rajaratnam for insider trading offences. This decision reversed the ruling made by the High Court in May 2021, which had granted Ramesh’s appeal and nullified the conviction and sentence imposed by the Sessions Court on all three charges against him. “The Court of Appeal accordingly set aside the High Court’s decision in acquitting Ramesh on the first charge and reinstated the earlier conviction and sentence imposed by the Sessions Court,” the SC said in a statement. “The Court of Appeal further directed that the case be remitted to the High Court and to be heard on the merits before anAppellate court reverses acquittal of ex-MMM deputy chairman for insider trading In delivering the court’s judgment, Wong emphasised the appellate court’s responsibility to assess the appeal’s merits thoroughly after the trial and during the appeal itself. This means the appellate court has to sieve through the appeal records, consider the written submissions and listen to the oral submissions before arriving at a decision regarding the appeal. In addition, the Court of Appeal maintained the same bail conditions initially set by the Sessions Court for Ramesh. This includes a bail sum of RM200,000 with one surety, as well as the requirement for Ramesh to surrender his passport to the court. Ramesh was originally charged with three counts of insider trading at the Kuala Lumpur Sessions Court in April 2015. Per the first charge, it was alleged that he disposed of five million MMM shares in January 2010 while possessing material inside information regarding the proposed downgrade by Malaysian Rating Corp Bhd of its credit rating on MMM’s RM120 million Al-Bai’ Bithaman Ajil Islamic Debt Securities from A-ID to BB+ID. Per the second and third charges, Ramesh was alleged to have disposed of a total of 5,200,800 MMM shares in February 2010, while possessing material inside information regarding the classification of MMM as a Practice Note 17 company. He was sentenced to five years’ imprisonment and fined RM3 million (in default of three years’ imprisonment) for each charge. by Syafiqah Salim theedgemalaysia.com by Syafiqah Salim theedgemalaysia.com other High Court judge,” it said. Judges Datuk Vazeer Alam Mydin Meera, Datuk Ahmad Zaidi Ibrahim and Datuk Wong Kian Kheong ruled that the High Court had erred in acquitting Ramesh without considering the case’s merits, the statement said.

TUESDAY MAY 7, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (May 7): Initial public offerings on Bursa Malaysia have largely delivered share price gains, offering hope to other companies seeking to raise funds while providing confidence to investors to bet on new listings. By the end of April, 21 of the 31 stocks listed on the Main Market and ACE Market in 2023 have racked up gains of between 1.1% and 360% from their listing price, according to data compiled by The Edge. Underwater IPOs, meanwhile, lost 2.0%-43% over the same period. Nationgate Holdings Bhd, an electronic manufacturing services firm, was the biggest winner with its share price more than quadrupling to RM1.75 from just 38 sen when it was listed in January last year. The top loser was golf equipment retailer MST Golf Group Bhd’s 43% decline to 46 sen from its IPO price of 81 sen in July 2023. Even among those that declined, three companies — DS Sigma Holdings Bhd, MYMBN Bhd and KGW Group Bhd — still commanded higher valuations than the time when they were listed, as the trio reported weaker earnings in their latest results. Most of the 21 companies that notched BY CHESTER TAY theedgemalaysia.com Bursa Malaysia’s 2023 IPOs largely deliver gains without major exits gains saw higher valuations along with their share prices, though four of them — Cape EMS Bhd, Vestland Bhd, Daythree Digital Bhd and L&P Global Bhd — saw their valuations decline or stagnant. Cape EMS, a Johor-based electronic manufacturing services company that rose 1.1% since its IPO to 91 sen at endApril, saw its earnings multiple drop to 19.15 times from 31.6 times, based on its listing price of 90 sen. Fortress Capital Asset Management (M) Sdn Bhd had in September last year cut its stake in Cape EMS to 2.4% from 16% upon launch of Cape EMS’ IPO. The fund manager is no longer among CONTINUES ON PAGE 5 Listings in 2023 (sorted by performance since IPO) Issuer name Market Listing date IPO Price Price as at end2023 Price as at end-April 2024 Market cap as at end-April (mil) Performances since IPO Performance in 4M2024 IPO PE ratio Trailing PE Ratio at endApril Remarks RM (%) (times) Nationgate Holdings Bhd ACE Jan 12, 2023 0.38 1.510 1.750 3,608.64 360.53 15.89 6.80 59.39 Promoters’ shareholdings largely unchanged TT Vision Holdings Bhd ACE Jan 18, 2023 0.34 0.825 1.210 552.24 255.88 46.67 15.32 51.08 Promotors’ stake remained, but Khazanah reduced stake from 23% to 14% Wellspire Holdings Bhd ACE Jan 16, 2023 0.23 0.670 0.810 566.14 252.17 20.90 22.98 214.86 French substantial shareholder Besanger Serge Pierre divested entire 7% stake, others remained the same Synergy House Sdn Bhd ACE July 1, 2023 0.43 0.690 1.500 745.00 248.84 117.39 12.93 27.44 Promoters’ shareholdings largely unchanged Autocount Dotcom Bhd ACE May 9, 2023 0.33 0.640 1.000 547.75 203.03 56.25 13.15 43.64 No changes to promoters’ shareholdings yet Critical Holdings Bhd ACE Dec 18, 2023 0.35 0.630 0.795 297.39 127.14 26.19 13.57 15.69 still under moratorium Oppstar Bhd ACE Mar 15, 2023 0.63 1.294 1.250 927.85 98.41 -3.40 19.33 40.85 Promoters made marginal divestment (< 1%) to their shareholdings Evergreen Max Cash Capital Bhd ACE Sept 26, 2023 0.24 0.415 0.470 524.00 95.83 13.25 13.30 27.49 No changes to promoters’ shareholdings yet Panda Eco System Bhd ACE Nov 27, 2023 0.16 0.210 0.310 208.07 93.75 47.62 15.20 41.33 still under moratorium Cloudpoint Technology Bhd ACE May 29, 2023 0.38 0.526 0.650 342.88 71.05 23.57 15.38 21.15 Private vehicle of promoters cut some stake, from 52% to 41% Mercury Securities Group Bhd ACE Sept 19, 2023 0.25 0.656 0.400 352.74 60.00 -39.02 12.63 35.59 Promoters’ shareholdings largely unchanged Edelteq Holdings Bhd ACE June 7, 2023 0.24 0.315 0.335 173.07 39.58 6.35 23.53 42.76 Promoters’ shareholdings largely unchanged

TUESDAY MAY 7, 2024 5 THEEDGE CEO MORNING BRIEF HOME Cape EMS’ top 30 largest shareholders, according to Cape EMS’ latest annual report published on April 30. Apart from Fortress Capital, Cape EMS’ executive director Tee Kim Yok halved his holdings to 6.8% from 13.8% when the group was listed in March 2023, and man- CONTINUES ON PAGE 6 FROM PAGE 4 aging director Tee Kim Chin trimmed his ownership slightly to 38% from 40.6%. Business process management services provider Daythree Digital Bhd’s share price appreciated 20% since launch of its IPO to 36 sen at end-April, but still trades steady at 23.1 times its earnings. Construction company Vestland and industrial packaging firm L&P Global both saw decline in valuations as earnings growth outpaced share price gain since their listings, with no major change in their promoters’ shareholdings. Vestland delivered a 10.6% net profit growth for the financial year ended Dec Issuer name Market Listing date IPO Price Price as at end2023 Price as at end-April 2024 Market cap as at end-April (mil) Performances since IPO Performance in 4M2024 IPO PE ratio Trailing PE Ratio at endApril Remarks RM (%) (times) Kumpulan Kitacon Bhd MAIN Jan 17, 2023 0.68 0.630 0.680 345.00 0.00 7.94 11.00 9.49 Promoter Tan Ah Kee raised stake marginally, substantial shareholder Teow Choo Hing pared stake from 29% to 14% Minox International Group Sdn Bhd ACE Oct 17, 2023 0.25 0.295 0.245 88.20 -2.00 -16.95 10.68 17.50 No changes to promoters’ shareholdings yet Radium Development Bhd MAIN May 31, 2023 0.50 0.381 0.475 1,664.64 -5.00 24.67 17.06 87.27 MD Gan Kah Siong sold some shares, cut direct stake from 15.7% to 14.6%, private vehicle cut stake from 37.5% to 34% KGW Group Bhd ACE Aug 1, 2023 0.21 0.195 0.190 91.73 -9.52 -2.56 6.21 237.50 No changes to promoters’ shareholdings yet DXN Holdings Bhd MAIN May 19, 2023 0.70 0.631 0.625 3,107.98 -10.71 -0.95 15.60 9.95 Promoters raised stake from 65% to 68% MYMBN Bhd ACE July 25, 2023 0.21 0.190 0.175 67.55 -16.67 -7.89 18.75 67.31 Promoters’ shareholdings largely unchanged Plytec Holding Bhd ACE Nov 15, 2023 0.35 0.305 0.280 168.02 -20.00 -8.20 15.49 5.23 still under moratorium SkyWorld Development Bhd MAIN July 10, 2023 0.80 0.538 0.615 615.00 -23.13 14.31 7.55 4.27 Promoters’ shareholdings largely unchanged DS Sigma Holdings Bhd ACE Jan 6, 2023 0.55 0.355 0.335 160.80 -39.09 -5.63 12.56 15.16 Promoters’ shareholdings largely unchanged MST Golf Group Bhd MAIN July 20, 2023 0.81 0.500 0.460 373.50 -43.21 -8.00 27.00 18.57 Promoters’ shareholdings largely unchanged *still loss-making Sources: Bursa Malaysia, Bloomberg L&P Global Bhd MAIN Jan 3, 2023 0.30 0.421 0.380 210.00 26.67 -9.74 11.72 10.16 Promoters’ shareholdings largely unchanged CPE Technology Bhd MAIN Dec 7, 2023 1.07 0.995 1.329 866.00 24.21 33.57 23.49 106.65 Still under moratorium Glostrext Bhd ACE Aug 15, 2023 0.19 0.195 0.235 95.65 23.68 20.51 18.81 50.88 No changes to promoters’ shareholdings yet Daythree Digital Bhd ACE July 26, 2023 0.30 0.370 0.360 175.20 20.00 -2.70 23.10 23.10 No changes to promoters’ shareholdings yet DC Healthcare Holdings Bhd ACE July 17, 2023 0.25 0.395 0.285 273.98 14.00 -27.85 26.10 105.77 Promoters’ shareholdings largely unchanged SSF Home Group Bhd ACE Oct 12, 2023 0.25 0.246 0.270 228.00 8.00 9.76 12.50 173.08 No changes to promoters’ shareholdings yet Vestland Bhd ACE Jan 31, 2023 0.33 0.345 0.350 348.01 6.06 1.45 29.20 11.90 Promoters’ shareholdings largely unchanged Jati Tinggi Group Bhd ACE Dec 20, 2023 0.27 0.270 0.285 111.66 5.56 5.56 11.58 23.55 Still under moratorium Cape EMS Bhd MAIN Mar 10, 2023 0.90 1.064 0.910 942.40 1.11 -14.47 31.60 19.15 MD Tee Kim Chin cut stake from 40.6% to 38%

TUESDAY MAY 7, 2024 6 THEEDGE CEO MORNING BRIEF HOME 31, 2023 (FY2023), while L&P Global earnings grew by 40.4%. Zooming in on the performances for the first four months of 2024, 18 of the 31 stocks listed last year recorded 1.45% to 117% gains while the remaining suffered losses ranging from 0.95% to 39%. Among the year-to-date gainers this year, 14 of them beat KLCI’s gain of 8.3%, with the top performer being Synergy House Bhd, a furniture designer and exporter, which gained 117.4%. At RM1.50 as at end-April, Synergy House, listed on June 1 last year, was trading at 27.44 times price-to-earnings ratio (PER), versus 12.93 times based on its IPO price of 43 sen. Other top performers include accounting software company Autocount Dotcom Bhd’s 56.25% gain and enterprise planning software firm Panda Eco System Bhd’s 47.62% appreciation over the four-month period. Underperformers were Mercury Securities Group Bhd, losing some 39% since the start of 2024, followed by DC Healthcare Holdings Bhd, which was down by 27.85% over the same period. No major exit by promoters Although most 2023 IPO cohorts have exceeded their six-month moratorium period for promoters or substantial shareholders to make divestments, there has been no major exit so far, except for consumer-packaged foods company Wellspire Holdings Bhd, which saw its French shareholder Besanger Serge Pierre sell the entirety of his 7% stake, while other substantial shareholders maintained theirs. FROM PAGE 5 That indicates a high degree of confidence among promoters and substantial shareholders in their companies’ prospects and share price outlook. There were also partial stake reductions, with Khazanah Nasional Bhd paring its shareholdings in automated machine vision solutions provider TT Vision Holdings Bhd to 14% from 23% previously, and one of the substantial shareholders in construction outfit Kumpulan Kitacon Bhd, non-executive director Teow Choo Hing reducing his ownership to 14% from 29%. Even with MST Golf and DS Sigma being the largest losers amongst the 31 IPOs last year, none of their promoters saw significant changes to their shareholdings after the expiry of the six-month moratorium. For companies that launched their IPOs this year, only one out of the 13 newly-listed stocks ended April below its IPO prices. The remaining 12 IPOs posted gains ranging from 1.6% (fertility care company Alpha IVF Group Bhd) to 147% (cable manufacturer Master Tec Group Bhd) as at end-April. The sole loser was logistic company AGX Group Bhd, which fell 5.7% since its IPO on Feb 7 this year. The early success of this year’s entrants provides a shot in the arm for Bursa Malaysia as it aims to host 42 IPOs with a market capitalisation of RM13 billion this year. Still, investors and analysts will be watching this space closely amid growing external risks that include global interest rates uncertainties, escalating geopolitical tension and potential supply chain disruptions. Listings in 2024 (sorted by performance since IPO) Issuer name Market Listing date IPO Price Price as at end-April 2024 Market cap as at end-April (mil) Performances since IPO IPO PE ratio Trailing PE Ratio at endApril Remarks RM (%) (times) Master Tec Group Bhd ACE Jan 29, 2024 0.39 0.965 1,004.70 147.44 20.31 36.08 Still under moratorium KJTS Group Bhd ACE Jan 26, 2024 0.27 0.595 419.68 120.37 26.00 35.26 Still under moratorium Keyfield International Sdn Bhd MAIN Apr 22, 2024 0.90 1.800 1,448.00 100.00 8.70 13.73 Still under moratorium Zantat Holdings Sdn Bhd ACE Mar 27, 2024 0.25 0.490 134.40 96.00 12.90 16.00 Still under moratorium HE Group Bhd ACE Jan 30, 2024 0.28 0.485 211.20 73.21 20.00 15.53 Still under moratorium Topmix Sdn Bhd ACE Apr 23, 2024 0.31 0.470 179.20 51.61 14.29 21.36 Still under moratorium TSA Group BHD ACE Feb 2, 2024 0.55 0.750 235.07 36.36 4.23 1.83 Still under moratorium Wentel Engineering Holdings Bhd ACE Feb 6, 2024 0.26 0.315 362.25 21.15 14.61 25.61 Still under moratorium SBH Marine Holdings Bhd ACE Apr 8, 2024 0.22 0.265 235.32 20.45 14.97 18.77 Still under moratorium Prolintas Infra Business Trust* MAIN Mar 25, 2024 0.95 0.970 1,061.50 2.11 NA NA Still under moratorium Alpha IVF Group Bhd ACE Mar 22, 2024 0.32 0.325 1,579.50 1.56 29.20 30.43 Still under moratorium MKH Oil Palm (East Kalimantan) Bhd MAIN Apr 30, 2024 0.62 0.620 629.51 0.00 20.30 11.89 Still under moratorium AGX Group Bhd ACE Feb 7, 2024 0.35 0.330 138.52 -5.71 11.18 14.18 Still under moratorium *still loss-making Sources: Bursa Malaysia, Bloomberg ZAHID IZZANI/THEEDGE

TUESDAY MAY 7, 2024 7 THEEDGE CEO MORNING BRIEF

tuesday may 7, 2024 8 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): Prime Minister Datuk Seri Anwar Ibrahim on Monday held an online conference with the president and chief investment officer of technology (CIO) giant Alphabet & Google, Ruth Porat. In a post on Facebook, Anwar who is also the Finance Minister said the session was a follow-up to their meeting in the United States last year. The prime minister said during the conference, Porat informed on the progress of the framework areas that Alphabet & Google can expand in Malaysia based on his previous explanation to her regarding the mission and focus of the Malaysian government. “Alphabet & Google very much welcomed the leadership, commitment and speed of facilitation given by the Malaysian government since the previous meeting,” he said. Anwar said the discussions also touched on the importance of cooperation and support of technology and artificial intelligence (AI) related to the education, health and agriculture sectors. “I emphasised that these efforts must eventually bring comprehensive economic and social benefits without leaving out any group or community, especially in terms of technology literacy.” Anwar hopes these efforts will bear fruit particularly in launching the national technology transition planning and creating job opportunities. In November last year, the Malaysian government and Google announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the fast-growing digital economy. Anwar: Alphabet & Google president updates on progress of potential areas of expansion in Malaysia KUALA LUMPUR (May 6): Ho Hup Construction Co Bhd’s RM1 billion mixed development project in Bukit Jalil will be suspended as it plans to sell the project’s 3.09-acre land for RM110 million cash. The disposal deal, inked between Ho Hup’s wholly-owned unit Bukit Jalil Development Sdn Bhd (BJD) and Exsim Development Sdn Bhd’s wholly-owned subsidiary Exsim Persiaran Jalil Sdn Bhd, is aimed to improve the group’s financial position, it said in a bourse filing on Monday. The Bukit Jalil land was approved for the development of the Flex project: two tower blocks (comprising small office-versatile-office units, a hotel, and serviced apartments) to be built on top of an eight-storey podium consisting three retail spaces and 20 retail shops. “In consideration of the disposal, Exsim Persiaran Jalil intends to suspend the existing Flex project and terminate all contracts with the existing consultants and contractor and the existing end purchasers,” Ho Hup said. In addition to the RM110 million disposal consideration, Exsim Persiaran Jalil is to also assume RM10.6 million in outstanding development charges BJD owes. From the RM110 million consideration, Ho Hup has earmarked RM80 million to repay bank borrowings, RM21 million to refund existing end purchasers of the project’s Sovo units, and RM8.5 million to pay consultants and the contractor. The land’s price tag was agreed upon in consideration of the land’s indicative value, with the benefit of the development order and vacant possession, of RM108 million as valued by an independent valuer. Under the group’s audited financial Ho Hup’s Flex project to be suspended, buyers refunded as Exsim buys land for RM110 mil statements as at end-December 2023, the land carried a net book value of RM119.42 million. Ho Hup is expected to record a one-off net loss on disposal of RM9.92 million. Ho Hup said that given the Flex project’s “recent commencement” and substantial capital requirements, the disposal offers an opportunity to improve the group’s liquidity and fortify its financial position. The group noted the disposal is to trim its gearing ratio to 1.31 times (total borrowings of RM429.14 million on net assets of RM328.58 million) from 1.49 times (total borrowings of RM509.14 million on net assets of RM338.48 million). The land sale, subject to requisite approvals from, among others, shareholders at an extraordinary general meeting to be convened, is expected to be completed in the third quarter of 2024. Exsim Development is owned by Exsim’s Lim brothers, namely Lim Aik Hoe, Lim Aik Kiat, and Lim Aik Fu, according to Ho Hup. Shares in Ho Hup ended one sen or 6.67% lower at 14 sen, giving the group a market capitalisation of RM72.56 million. by Izzul Ikram theedgemalaysia.com Bernama

tuesday may 7, 2024 9 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): The Edge Communications Sdn Bhd and its owner Tan Sri Tong Kooi Ong have ceased to be substantial shareholders in Star Media Group Bhd following the latest share sale last week. Tong sold out his direct stake of 0.2%, or 1.45 million shares on May 2 and 3. Meanwhile, The Edge sold 1.5 million shares on May 3, according to Star MeThe Edge and its owner cease to be substantial shareholders of Star Media KUALA LUMPUR (May 6): Pahang-based hypermarket operator TF Value-Mart Sdn Bhd has initiated legal action against GCH Retail (Malaysia) Sdn Bhd, operator of the Giant Hypermarket brand, citing loss of business and non-compliance with a court order to surrender a 180,000 sq ft premises located in Batu Caves. TF Value-Mart, which operates a chain of stores in its own namesake, said it was to take over the lease of the premises after GCG Retail vacates it. It had inked a tenancy agreement in 2023 with the landlord of the premises — Crystal Promenade Sdn Bhd (formerly known as H Land Development Sdn Bhd) — to assume the tenancy once GCH Retail’s lease expired on Jan 31, 2024. But on expiration of its lease, GHC Retail failed to vacate the premises. Instead, it filed a suit against Crystal Promenade for alleged breach of contract and disruption of its operations, said TF Value-Mart in a statement. Crystal Promenade, in a counterclaim, obtained a summary judgment in its favour, which affirmed the expiration of GHC Retail’s tenancy agreement and the absence of any option for GCH Retail to extend the lease beyond Jan 31 this year. The summary judgment further stipulated that GCH Retail was “obligated to surrender vacant possession of the premises to the landlord in accordance with the terms of the initial tenancy agreement”, said TF Value-Mart. But GCH Retail continued to occupy the premises, it claimed. Therefore, TF Value-Mart said it had initiated legal action against GCH Retail to protect its business interest with regards to its Batu Caves operations, which it had intended to start on Feb 1, 2024. GHC Retail, meanwhile, has yet to reply to requests for comments on the matter at the time of writing. TF Value-Mart said it has, between 2016 and 2021, taken over the premises of nine hypermarket stores from GCH Retail when its leases were not renewed by the DFI Retail Group, which sold GCH Retail to Macrovalue Sdn Bhd in 2023. TF Value-Mart sues GCH Retail to get it to vacate Giant Batu Caves premises Foreign buying of local equities surged to RM1.06 bil last week, says MIDF by Chester Tay theedgemalaysia.com by Surin Murugiah theedgemalaysia.com by Justin Lim theedgemalaysia.com dia’s exchange filing. The transaction price was not disclosed. After the latest transactions, The Edge is left with 36 million shares or 4.87% in Star Media, based on its issued share capital of 738.56 million shares. Tong is deemed interested in Star Media via his shareholding in The Edge. In April last year, Tong emerged as a substantial shareholder of Star Media Group after he acquired a direct interest of 1.84 million shares or a 0.25% stake, as well as 37.5 million shares or a 5.17% indirect interest through The Edge. In an internal memo to staff, Tong said the acquisition was purely an investment. Star Media Group publishes the country’s largest English daily The Star. Malaysian Chinese Association (MCA) is its controlling shareholder with a 47.23% equity interest. Star Media closed down half a sen or 1.2% at 40 sen on Monday, giving the company a market capitalisation of RM295 million. The stock has fallen 19% compared with a year ago. KUALA LUMPUR (May 6): Foreign buying of Malaysian equities surged 3.6 times to RM1.06 billion last week from RM292.2 million the prior week, as they net bought every day of the week. In its fund flow report on Monday (May 6), MIDF Research said this was the strongest weekly net buying amount in two years. It said the last time Malaysia saw such heavy inflows was the week ended March 18, 2022 at RM1.18 billion. “Foreign investors net bought RM451.8 million last Monday (April 30), RM184.3 million last Tuesday, RM43.0 million last Thursday and RM376.1 million last Friday. “The sectors that recorded the highest net foreign inflows were utilities (RM443.7 million), financial services (RM277.3 million), and telecommunication and media (RM140.4 million), while the sectors with the highest net foreign outflows were energy (RM22.4 million), (RM mil) Daily average of foreign participation in Bursa Malaysia for the week (RM mil) Sources: Bursa Malaysia & MIDF Research May 2022 May 2023 May 2024 0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 plantation (RM16.9 million), and property (RM10.4 million),” it said. MIDF said local institutions took a breather from their strong support for the local market when they net sold RM943.1 million last week, after net buying for nine straight weeks. “They net sold every day last week. “Local retailers sustained their net selling streak for the eighth consecutive week, totalling RM112.2 million,” it said. MIDF said that in terms of participation, the average daily trading volume saw increases among all investor classes. It said foreign investors led with an increase of 22.0%, followed by local institutional investors at 16.7% and local retail investors at 6.7%.

tuesday may 7, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): National carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is targeting a 79% export growth to 1,960 units this year, compared to 1,094 units in 2023, as it expands its footprint in Brunei with the introduction of new models. In 2023, it sold 300 Bezza 1.0L G to Brunei — Perodua’s first and biggest export market. This year, it expects to sell at least the same number of the Bezza, together with 120 units of the Alza AV and H, and 40 units of the Axia AV and G — which it introduced to Brunei this month — bringing its total anticipated sales to Brunei this year to 460 units. “We foresee 2024 to be our first year of our export expansion, as we are now at a point where the Malaysian automotive ecosystem would be able to cope with the ever-growing demand of our vehicles, both within and outside the country,” said Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad. He expects growth in Perodua’s exports to continue, as the company aggressively expands its operations and its vendors’ production capabilities. “Brunei is the first export market we are expanding to without compromising domestic allocation of our vehicles. In fact, we have significantly reduced the waiting period for most of our popular models and even have ready stock for selected models,” Zainal said. “In addition, our targeted increase in exports will also give greater opportunities for our vendors to grow their sales volume in tandem with the need for spare parts,” he added. Perodua eyes 79% jump in exports this year as it introduces more models in Brunei KUALA LUMPUR (May 6): Proton Holdings Bhd reported on Monday its car sales rose by 17.1% to 11,025 vehicles in April (including domestic and exports) compared to the 9,415 units sold last year. In a statement, the national automaker said that sales for the first four months of 2024 closed stronger with 50,175 units, surpassing the 49,702 units sold from January to April 2023. It added that the total industry volume (TIV) for the Malaysian automotive market also saw growth over the same period, reaching an estimated 59,100 units, with a cumulative total of 261,345 units for the year. In terms of market share, Proton estimates it held around 18.7% in April alone. The year-to-date market share is forecast to be at 19.2%, maintaining its second position in the overall national automotive sales ranking. According to Proton, its best-selling model, the Proton Saga, registered 5,031 units in April. Year-to-date sales are up 8.8% to 23,278 units, making it an attractive proposition to car buyers due to its blend of features, driveability, and value. Meanwhile, sales for the Proton X70 reached 552 units. The company’s B-segment sedan, the Proton Persona, and the flagship SUV registered sales of 1,429 units, while the Proton X90 stood at 312 units. Additionally, Proton’s B-segment hatchback, the Proton Iriz, added 424 units to its April sales volume, bringing the total sales to date to 1,958 units. Proton Edar’s chief executive officer, Roslan Abdullah said the sustained demand for Proton models is bolstered by ongoing efforts in quality improvement, with better Global Customer Product Audit (GCPA) scores since 2019, instilling greater confidence among drivers. On the export market, Proton highlighted that export sales remain a key driver for the company’s performance, having soared 38.5% from 603 units to 835 units yearto-date in April. Roslan emphasised that export sales remain a vital pillar to Proton’s long-term goals. With the Proton S70 ramping up its sales in both the domestic and export markets, he expressed confidence in achieving sustainable export sales growth this year and increasing the contribution of export sales to their annual sales volume. Year to date, Proton’s export sales volume has surged 38.5% to 835 units, compared to 603 units registered in the same period last year. Leading the pack in terms of exports is the Proton Saga, with 427 units sold yearto-date, an increase of 16% from 368 units from the same period last year. The Proton X50 came in second with 176 units sold, while the Proton S70 recorded 89 units in its only export market—Brunei, for the first four months of the year. “This year, we have added Trinidad and Tobago to our export portfolio and reestablished our foothold in Bangladesh. Proton is confident of the market rebounding in the short to medium term as there is still a lot of demand from car buyers,” Roslan added. Proton records sales of 11,025 units in April, higher by 17.1% y-o-y by Luqman Amin theedgemalaysia.com by Justin Lim theedgemalaysia.com Proton Edar’s chief executive officer, Roslan Abdullah said the sustained demand for Proton models is bolstered by ongoing efforts in quality improvement, with better Global Customer Product Audit (GCPA) scores since 2019, instilling greater confidence among drivers. the edge file photo

tuesday may 7, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): Fraser & Neave Holdings Bhd (F&N) shares surged to their highest in five years on Monday, as better-than-expected results buoyed investors’ optimism, while analysts maintained their calls following a briefing. F&N rose as much as 3% or 96 sen to RM32.96, its highest since April 2019, before ending the day at RM32.24 — still up 24 sen or 0.75%, valuing the food-and-beverage company at RM11.83 billion on Bursa Malaysia. Excitement in the market is building up over the company’s dairy farm project, which appears on track for its first milking by early 2025, analysts said. “While not profitable over the near term, the scale of the project implies a sigF&N surges to five-year high on better earnings, outlook KUALA LUMPUR (May 6): Rubber processor and exporter Seng Fong Holdings Bhd’s net profit jumped more than threefold in its third quarter, thanks to higher sales volume and average selling prices. It said its net profit for its 3QFY2024 ended March 31 surged to RM15.14 million from RM4.05 million a year earlier, while revenue jumped 39.2% to RM300.32 million from RM215.72 million. The company declared a third interim dividend of 1.5 sen per share, payable on June 19. Year to date, the company has declared a total dividend of four sen, compared with 2.5 sen in the corresponding period in 2023. The group’s share price hit its all-time high of RM1.22 during trading hours on Monday, before settling at RM1.18, one sen or 0.85% higher from Friday’s close. At RM1.18, the group is valued at RM639 million. Year to date, the counter has gained 42 sen or 55.26%. The strong 3Q results came after the group posted its best quarterly earnings in 2QFY2024 with a net profit of RM17.4 million. For its nine months ended March 31 (9MFY2024), the company reported a net profit of RM40.84 million, double the RM19.62 million it made in the corSeng Fong’s net profit jumps over threefold in 3Q; share price hits all-time high by Hee En Qi theedgemalaysia.com by Luqman Amin theedgemalaysia.com continues on Page 12 responding period in 2023, as revenue grew 15.6% to RM807.35 million from RM698.18 million. There has been higher consumption of natural rubber due to the growth of the automotive industry, led by the growth of electric vehicles in the US and China, Seng Fong said. As such, it expects to expand its annual capacity by 14.5% to 190,000 MTS for FY2024, compared with 166,000 MTS in FY2023, by increasing the production hours across all three of its factories. The group is also planning to install smart rubber manufacturing equipment at a total cost of RM26.1 million in all its factories to automate its manufacturing process. An initial payment of RM2.7 million has been made to its vendor Guangdong Ruobo Intelligent Robot Co Ltd using internal funds, the group said. The balance will be paid using proceeds from its private placement announced in February this year. While flagging that the anticipated US Federal rate cut will affect foreign exchange movements, the group — which saw its revenue come mainly from customers in China, Hong Kong and Singapore — remains cautiously optimistic about achieving sustainable growth and good financial performance for FY2024. Seng Fong charts all-time high since listing Source: Bursa Malaysia July 6, 2022 May 6, 2024 RM/sen 0.4 0.6 0.8 1.0 1.2 67.1 sen RM1.18 nificant footprint into a highly lucrative segment,” UOB Kay Hian said. “Existing brands and an extensive distribution network should see a seamless integration.” Shares of F&N have risen some 25% so far this year as investors seek refuge in companies that sell staple products to weather tough times ahead. The government is set to implement a slew of measures, ranging from trimming subsidies for fuel to imposing new taxes on luxury goods, this year. Analysts covering F&N have issued five “buy” recommendations, while the remaining two have “hold” calls. The consensus 12-month target price is RM35.61, according to Bloomberg data. Fraser & Neave Holdings Bhd 0 0.3 0.6 0.9 1.2 1.5 May 8, 2023 May 6, 2024 20 25 30 35 Vol (mil) RM *RM32.24 RM26.44 *As at market close on May 6, 2024 Source: Bloomberg Analysts’ recommendations for Fraser & Neave Holdings Bhd Research house Recommendation Target price (RM) UOB Kay Hian Buy 39.00 Kenanga IB Outperform 38.25 Macquarie Outperform 37.80 MIDF Amanah Buy 37.00 TA Securities Hold 34.50 CIMB Securities Hold 32.50 CGS International Add 31.70 Source: Bloomberg

tuesday may 7, 2024 12 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): Logistic services provider Sin-Kung Logistics Bhd, which is set to be listed on the ACE Market of Bursa Malaysia on May 15, said its initial public offering (IPO), priced at 13 sen apiece, had been oversubscribed by 26.5 times. By the close of its IPO application on May 2, Sin-Kung said it had received 13,179 applicants for 1.7 billion new shares from the Malaysian public for the 60 million shares it allocated for public subscription — representing an overall subscription rate of 26.5 times. Of this, 7,360 applications for 680.7 million shares were received for the Bumiputera portion, representing an oversubscription of 21.7 times. The non-Bumiputera portion drew 5,819 applications for 971.8 million shares, representing an oversubscription rate of 31.4 times. The 45 million shares it made available for its eligible directors, employees and persons who have contributed to the success Sin-Kung IPO shares oversubscribed by 26.5 times ahead of ACE Market listing KUALA LUMPUR (May 6): Maybank Investment Bank (Maybank IB) on Monday began coverage of SAM Engineering & Equipment (M) Bhd with a counter-consensus ‘buy’ call, betting on the cyclical recovery of the aerospace and semiconductor sectors. Earnings at SAM Engineering, a contract manufacturer that makes aircraft parts and electronic components, will likely grow 20% on average annually over three years, according to Maybank IB. The company’s aerospace end-clients, Airbus and Boeing, have record-high backlog orders, it noted. SAM Engineering also has exposure to both front- and back-end customers in the semiconductor space, and “should therefore recover ahead of most of its other domestic peers”, Maybank IB said. The research house has a target price of RM6.05 for a potential 26% gain within 12 months. Shares of Sam Engineering have surged 32% so far this year, outperforming its industrial sector’s gain and the country’s benchmark index FBM KLCI, thanks to a surge in quarterly profits. The stock has also attracted the attention of the Employees Provident Fund (EPF). In April, the EPF bought one block of 45.09 million shares, equivalent to a 6.7% stake, at an undisclosed value, making the pension fund the largest shareholder in SAM Engineering after Singapore’s sovereign wealth fund Temasek Holdings Pte Ltd. Hong Leong Investment Bank and CGS International, the only other two research houses covering SAM Engineering, have ‘hold’ calls on the stock. Sam Engineering, which derives 23% of its revenue from the aerospace sector, is also expected to consolidate the results of newly Maybank IB joins coverage of SAM Engineering with counter-consensus ‘buy’ call by Jason Ng theedgemalaysia.com by Luqman Amin theedgemalaysia.com acquired Aviatron Sdn Bhd from February onwards, Maybank IB said. Aviatron mainly produces engine nacelle beams for Boeing and Airbus aircraft. The commissioning of its Rojana Plant 2 and Ban Bueng Plant 1 for its equipment segment — which provides services including precision machining and sheet metal fabrication — could generate revenue of about RM800 million annually, according to Maybank IB’s estimates. “We believe that Sam Engineering is well positioned in the right space and will go through a multi-year growth cycle” over the next three to five years, the research house added. Net profit surged 53% in the third quarter ended Dec 31, 2023 to RM29.32 million from RM19.19 million over the same period a year earlier, according to the latest available results. The company will have until the end of May to announce its fourth quarter and full-year results. Read also: Analysts raise SLP Resources earnings forecasts, TPs after strong 1Q performance of the group have been fully subscribed. The 198.5 million shares that were made available for application by way of private placement to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) and selected investors have also been fully placed out. Sin-Kung’s IPO involves a public issuance of 200 million new shares — representing 16.7% of the enlarged share capital of Sin-Kung Logistics — and an offer for sale of 103.5 million existing shares (8.6%). Sin-Kung Logistics currently operates five warehouses in the central and northern regions of Peninsular Malaysia, and owns about 460 commercial vehicles for its logistics business. Its major customers include airlines, sales agents of airlines, local and international freight forwarders, manufacturers and online retailers. It plans to use the RM26 million it expects to raise from the IPO to expand its warehousing and distribution services, repay bank borrowings, buy new commercial vehicles as well as for working capital and to pay for its listing expenses. The sale of existing shares is expected to gross RM13.5 million, which will go entirely to the selling shareholders Sin-Kung managing director Alan Ong and his sister Angeline Ong, who is an executive director. Based on an enlarged share capital of 1.2 billion shares, Sin-Kung Logistics is expected to have a market capitalisation of RM156 million after listing. M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise. from Page 11 F&N is aiming for a production of 100 million litres of milk for its initial phase, with capital expenditure of RM1.7 billion for the next three to six months, according to analysts who attended the company’s briefing. “However, the yield may be affected by the cows’ adaptability to the hot and humid weather in Malaysia,” TA Securities flagged. In the near term, F&N is banking on cost control and targeting higher sales volume, instead of price increases, said MIDF Amanah Investment Bank. The company had already increased prices for ketupat and “gummy bears” in the financial year 2023 (FY2023) and “management does not foresee any price hikes in the near term and, instead, would focus on cost optimisation, with a price hike being considered only as a last resort,” the research house said. F&N is also investing in a manufacturing facility for dairy products in the Suvannaphum Special Economic Zone in Cambodia for US$37.5 million (RM179.5 million), which will produce sweetened beverage creamers by the first quarter of FY2026. For Kenanga Investment Bank, which “came away from the post-results briefing feeling positive” on F&N’s prospects, the venture is “a natural progression, spurred by growing exports to [the] Cambodian” market, which currently contributes an estimated 5% to 7% to F&N’s total revenue.

tuesday may 7, 2024 13 The E dge C E O m o rning brief home news In brie f KKB Engineering secures contracts worth RM37.9 mil KUALA LUMPUR (May 6): Steel fabrication company KKB Engineering Bhd said on Monday that it has secured two contracts worth a combined total of RM37.9 million. KKB’s associate company Edisi Optima Sdn Bhd will build and maintain liquefied petroleum cylinders for Petronas Dagangan Bhd for one year, the company said in an exchange filing. The contract is also extendable for another year until 2026, it noted. In addition, KKB Engineering will also supply mild steel concrete line pipes and fittings to Perbena Emas Sdn Bhd, a wholly-owned subsidiary of Pansar Bhd, according to the same filing. The contract is expected to be completed by the second quarter of 2025. The contracts are expected to contribute to the earnings and net assets of the Sarawak-based company for the duration of the contract and supply period, it added. Shares of KKB Engineering rose three sen or 1.66% to RM1.84, valuing the company at RM531.26 million, ahead of the contracts announcement. — by Luqman Amin EPF initiates legal action against Ireka unit over unpaid contributions KUALA LUMPUR (May 6): Practice Note 17 (PN17) company Ireka Corp Bhd said its wholly-owned Ireka Development (Terengganu) Sdn Bhd (IDTSB) and the unit’s directors are being sued by the Employee Provident Fund (EPF) over unpaid contributions to the fund. In a bourse filing on Monday, the construction outfit said EPF is claiming a principal sum of RM50,196, representing total outstanding contribution from August 2023 to December 2023, along with dividends and late payment charges to be determined upon full settlement of the amount claimed. “IDTSB is currently negotiating a settlement plan with EPF to resolve the amount claimed under the writ,” it said, referring to the writ of summons filed by the EPF. Ireka said there is no major financial impact from the lawsuit as the claimed amount has been recognised in IDTSB’s financial statements. Ireka triggered PN17 criteria in August 2020 due to its auditors’ concerns about its ability to continue as a going concern, as its shareholders’ equity fell below the required threshold. It officially entered PN17 status on March 1, 2022, after Bursa Securities rejected its application for an extension of the relief period that was provided during the pandemic. Since last year, Ireka has been hit by several lawsuits over defaults in payment, including one from AmBank for outstanding debt of RM4.24 million in March 2023 — for which AmBank has petitioned to wind-up Ireka in January this year — and another from RHB Bank for RM6.53 million in February 2024, alleging a default in a revolving credit facility. — by Choy Nyen Yiau RHB names Mohd Najman Isa as CEO of Islamic asset management unit KUALA LUMPUR (May 6): RHB Bank Bhd said on Monday that it has appointed Mohd Najman Isa as the new chief executive officer (CEO) and chief investment officer of RHB Islamic International Asset Management Bhd (RHBIIAM). The appointment took effect on April 8. Before joining RHBIIAM, Najman spent six years with Sumitomo Mitsui DS Asset Management Hong Kong, where he was a lead equity portfolio manager for selected Asia Pacific ex-Japan equity mandates. He also served as its lead analyst for the financial sector of emerging Asia ex-China markets, according to a statement from RHB. Prior to that, Najman was the lead portfolio manager for selected Shariah Asia ex-Japan and Shariah Asean equity mandates at Eastspring Investments Malaysia. Before that, he co-managed various equity mandates at Aberdeen Asset Management. According to RHB, Najman is a chartered financial analyst and has a capital markets services representative’s licence. Datuk Fad’l Mohamed, managing director of RHB Banking Group wholesale banking, said Najman’s appointment as the new CEO of RHBIIAM is a strategic move that underscores the group’s commitment to the continuous growth of RHBIIAM. — by Luqman Amin SC adds six entities to Investor Alert List, four being potential clones KUALA LUMPUR (May 6): The Securities Commission Malaysia (SC) has updated its Investor Alert List. In an alert last Thursday, the commission said the following persons/entities were added to the list: • Potential clone entity — Phillip Wealth Planners • Potential clone entity — Stern • Capitalix • Potential clone entity — NCC Investment • Asvisonomics • Possible clone entity — Saham Mastery The Investor Alert List contains a list of unauthorised websites, investment products, companies and individuals, including those dealing in — or holding themselves out to be involved in — securities, derivatives, fund management, private retirement schemes, and the provision of advice on corporate finance and financial planning, without a licence from the SC. It also includes those operating a recognised market without authorisation, issuing or offering securities without approval, authorisation or recognition, or misusing the SC’s logo and misrepresenting the SC. — by Surin Murugiah Favelle Favco wins four contracts worth RM39.2 mil KUALA LUMPUR (May 6): Construction crane manufacturer Favelle Favco Bhd (FFB) has secured four contracts for the supply of offshore and tower cranes totaling RM39.2 million. Two contracts for offshore cranes were awarded by Hilong Petroleum Offshore Engineering Ltd and CUEL Ltd. The Hilong job is to be delivered in the third quarter of this year, while CUEL’s is to be completed by the first quarter of 2025. The other two contracts, which are for the supply of tower cranes, were awarded by Favco Heavy Industry (Changshu) Co Ltd and GA Caelli Holdings Trust. The first is expected to be delivered in the third of this year, and the second is to be completed in the second quarter. Earlier in January this year, FFB announced securing five contracts worth a combined RM79.4 million for crane supply and machinery replacements, from clients Servizi Energia Italia SpA, Resolution Rigging Services Pty Ltd, E&P O&M Services Sdn Bhd, Petron Malaysia Refining & Marketing Bhd, and Petronas Carigali Sdn Bhd. Shares in Favelle Favco settled four sen or 1.89% higher at RM2.16, valuing the group at RM508.41 million. — by Choy Nyen Yiau www.favellefavco.com rhb-bank-bhd

tuesday may 7, 2024 14 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): Communications Minister Fahmi Fadzil said the World Press Freedom Index produced by Reporters Without Borders (RSF) is not the golden standard but a mere benchmark for the government to consider the actions that can be taken to improve the nation’s media freedom. “The report does not only relate to the Ministry of Communications or media freedom alone but also involves the acts under different ministries, as well as LGBT (lesbian, gay, bisexual and transgender) issues,” he told reporters on Monday, after the opening ceremony of the International Regulatory Conference (IRC) 2024. “We know Malaysia’s stance on the [LGBT] issue and the appropriateness of certain matters within the Asean or Eastern mould,” he said. According to the World Press Freedom Index 2024, Malaysia has slipped 34 places to 107th, compared to 73rd last year. “News sites critical of the government are often blocked in Malaysia,” RSF noted. Across the Asean region, Malaysia remains the second highest, trailing behind Thailand (87th) but ahead of other regional peers such as Indonesia (111th), Singapore (126th), and Vietnam (174th). Fahmi also refuted claims that Malaysia is performing worse than Israel in upholding press freedom. Earlier, Perikatan Nasional’s Member of Parliament Wan Saiful Wan Jan had said that Fahmi had embarrassed the country, as Malaysia was ranked lower than Israel (101st). “We did not kill like what happened in Gaza, and we did not touch any media entities like how Israel raided Al-Jazeera’s office,” Fahmi said. On Sunday (May 5), the Israeli government decided to shut down news channel Al Jazeera’s operations in Israel for as long as the war in Gaza continues. Nevertheless, Fahmi said the government will meet with the international non-profit organisation (RSF) soon, to receive its feedback and suggestions on how Malaysia can improve on its press freedom. “We will also have to consider if RSF’s suggestions are suitable for Malaysia,” the minister added. World Press Freedom Index not the golden standard, says Fahmi as Malaysia’s ranking drops by Hee En Qi theedgemalaysia.com PUTRAJAYA (May 6): Prime Minister Datuk Seri Anwar Ibrahim wants the members of the Cabinet and heads of departments (HODs) to immediately submit the names of the villages they will represent, preferably their own, in order to help uplift the lives of the residents, especially the poor. Cabinet ministers, govt HODs told to submit names of villages to be represented — Anwar KUALA LUMPUR (May 6): Police have recorded the statement of a journalist from an English-language portal to assist investigations regarding the publication of an article alleging talks of a casino licence to revive the Forest City property project in Johor. Inspector General of Police (IGP) Tan Sri Razarudin Husain said the statement was recorded by the Bukit Aman Classified Crime Investigation Unit (USJT) after the media officer who was summoned to appear turned up there at 8.30am Monday. “We will also call a few more individuals to help with the investigation,” he said when asked for comments at the Defence Services Asia (DSA) exhibition and the National Security Exhibition (Natsec) Asia 2024 here on Monday. The investigation is being conducted in accordance with Section 4(1) of the Sedition Act, Section 500 of the Penal Code (for defamation) and Section 233 of the Malaysian Communications and Multimedia Act 1998. Last Friday, Razarudin confirmed that an investigation had been carried out after lawyers of businessman Tan Sri Vincent Tan lodged a report regarding the publication of an article by an international news portal related to the establishment of a casino in Forest City, which allegedly contained false, untrue, unsubstantiated and unverified statements. The portal, which cited sources among others, also linked the names of Prime Minister Datuk Seri Anwar Ibrahim, Berjaya Corporation Bhd (Berjaya Corp) and Genting Malaysia Bhd, but all parties involved have denied the report published by the portal. IGP: Journalist quizzed over Forest City casino report, more to follow Bernama Bernama He said this is a new idea and approach to ensure that long-standing problems in rural areas can be addressed systematically and effectively. “They must listen to every problem and try to solve them. Issues such as unemployment, and dropout rates, for example, can be rectified more promptly. “A Madani nation must start from the grassroots and move upright on the path of change,” he said at the Prime Minister’s Department’s monthly assembly here today. Anwar said the government has allocated over RM22 billion to assist the poor through various ministries and departments based on inputs obtained from village chiefs and headmen from meetings with government representatives. Read also: JPA adopts Pulau Aman as Madani village with RM2.5 mil allocation Sam Fong/The Edge

tuesday may 7, 2024 15 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): The Road Transport Department (JPJ) said that the insurance comparison platform BJAK has not received approval to offer road tax renewal services. BJAK’s claim on its website that the online road tax renewals have been audited, verified, and approved by JPJ is “untrue and misleading,” the department said in a statement. The company also did not receive approval for additional charges to be imposed on their customers for the renewals, it noted. “The department wishes to clarify and emphasise that there is no system integration between the JPJ system MySikap and the system used by BJAK,” the department said. BJAK not authorised for road tax renewal services, says JPJ by Choy Nyen Yiau theedgemalaysia.com The department stressed that it takes seriously BJAK’s advertisement regarding road tax renewal services, including the free road tax programme on its website and social media platforms. Further, JPJ has received complaints from the public over road tax renewals KUALA LUMPUR (May 6): Former 1Malaysia Development Bhd (1MDB) chief executive officer (CEO) Datuk Shahrol Azral Ibrahim Halmi told the High Court here Monday that he has no knowledge as to why the government dropped him as a defendant in 1MDB subsidiary SRC International’s US$1.18 billion (RM5.64 billion) civil suit against former prime minister Datuk Seri Najib Razak and the company’s former chief executive officer Nik Faisal Ariff Kamil. Testifying as a third party in this trial, Shahrol, who was being cross-examined by Najib’s lawyer Harvinderjit Singh, said that he had not made a deal with the government to drop the suit against him, adding that he was not given a reason as to why it was dropped. Initially, the suit also named former 1MDB director Tan Sri Ismee Ismail, and former SRC directors Datuk Mohammed Azhar Osman Khairuddin, Datuk Suboh Md Yassin and Datuk Che Abdullah @ Rashidi Che Omar, as defendants. Though they were later dropped from the case, Najib brought them back again as third parties. A defendant can seek to do so in order to claim contribution, indemnity or any remedy which is claimed by the plaintiff. Harvinderjit: This present case was filed in 2021, notice was served to you and then we have a discontinuance where the suit was dropped against you. Shahrol: Yes. Harvinderjit: Was there a resolution between you and the government? Shahrol: No. Harvinderjit:Then why did they drop the suit against you? Shahrol: I don’t know. Harvinderjit: You didn’t ask them? Shahrol: No. When asked by Harvinderjit if it was because he had testified in Najib’s 1MDB-Tanore criminal trial as a prosecution witness, Shahrol said: “I don’t have knowledge about that.” Previously in 2020, while testifying in the 1MDB-Tanore trial, Shahrol had also denied making a deal with the Malaysian Anti-Corruption Commission (MACC) and the government to testify against Najib to avoid criminal charges. During this SRC trial, Shahrol had also Ex-1MDB CEO Shahrol says doesn’t know why govt dropped US$1.18 bil SRC suit against him by Timothy Achariam theedgemalaysia.com previously stated that he had never been arrested by the authorities for SRC- and 1MDB-related crimes. He was only restricted from travelling out of the country from July 2018 until early 2020. SRC is suing Najib and Nik Faisal (who is currently at large) over a RM4 billion Retirement Fund Inc (KWAP) loan given out to SRC in two tranches — one in the second half of 2011, and the other in the first half of 2012. SRC filed the suit in May 2021. SRC alleges that Najib, who was SRC’s emeritus adviser from May 1, 2012, until March 4, 2019, had abused his power and obtained personal benefits from SRC’s funds as well as misappropriated the funds. SRC, which is now wholly-owned by Minister of Finance Inc, wants a declaration from the court that Najib is liable for the company’s losses due to his breach of duties and trust. SRC claimed that out of the total KWAP loan of RM4 billion, RM3.6 billion was immediately transferred out when the funds came into SRC, of which US$120 million ended up in Najib’s bank account. Hence, SRC is also seeking an order that Najib pays the US$1.18 billion (RM3.6 billion) in losses it suffered, and damages for breach of duties and trust, including an order that Najib compensates the company for the sum of US$120 million that allegedly went into his bank account. SRC has obtained a judgement in default against Nik Faisal, who was named as Najib’s proxy, in the civil suit. Najib, meanwhile, has been jailed since Aug 23, 2022. He was sentenced to serve a 12-year jail sentence and fined RM210 million after being convicted of misappropriating RM42 million of SRC’s funds. But his jail sentence was recently reduced to six years, while the fine was cut to RM50 million by the Pardons Board. The trial will continue on Wednesday before High Court judge Datuk Ahmad Fairuz Zainol Abidin. processed through the BJAK website, citing issues with the validity period not being updated and grievances about additional fees charged for the renewals. The department said it wants to emphasise that the Ministry of Transport or JPJ has never granted approval for any additional charges to be imposed by BJAK on their customers. JPJ encourages the public to renew their road tax at JPJ counters, kiosks, and mobile counters, or through the MyJPJ application, JPJ public portal, and JPJ partner platforms like PosMalaysia, MyEG, and Puspakom. The department also urged caution when dealing with platforms offering unauthorised road tax renewal services. Datuk Shahrol Azral Ibrahim Halmi Low Yen Yeing/The Edge

tuesday may 7, 2024 16 The E dge C E O m o rning brief home KUALA LUMPUR (May 6): The Attorney General’s Chambers (AGC) will be objecting to Muar Member of Parliament Syed Saddiq’s leave application to take legal action against Prime Minister Datuk Seri Anwar Ibrahim and the government over RM730,300 in allocations meant for his constituency. Senior federal counsel (SFC) Ahmad Hanir Hambaly @ Arwi confirmed the matter with The Edge when contacted on Monday. He also confirmed that the leave application will be heard on July 12. The Malaysian United Democratic Alliance (Muda) co-founder filed leave for a judicial review over outstanding allocation for his constituency since September last year. Three local leaders from Muar who were also impacted from the pause in funds are also applicants in the suit. According to court documents, the 31-year-old said that RM500,000 out of a total RM1.7 million previously allocated by the government had yet to be paid to his constituency. The monies were to fund charitable programmes, welfare of the constituents, and natural disaster aid. The constituency had received RM1.5 million up until Sept 10, 2023, he noted. He added that the government had also cancelled a separate allocation of RM230,300 which he had applied for and had had approved under the MyKhas allocation system. These funds were, among others, meant for renovations and repair works of schools and mosques. He also claims that his access as an MP to the MyKhas system to apply for allocations for Muar had been revoked. Among others, he is seeking a court order for the funds to be channelled to the constituency and for his access to the MyKhas system to be reinstated. Syed Saddiq said that the payments had AGC to object to Syed Saddiq’s leave application over unpaid allocations PUTRAJAYA (May 6): Former prime minister Tan Sri Muhyiddin Yassin’s four graft charges, which were reinstated by the Court of Appeal in February, had met all the ingredients of an offence under stipulated laws, and were not ambiguous. In a 32-page written judgment that was released on Monday, the three-member COA bench also ruled that Section 3 of the Malaysian Anti-Corruption Commission (MACC) Act 2009 said an “associate”, as termed in Muhyiddin’s charges, represents a political society or even a non-governmental organisation (NGO) and is not limited to companies. Judge Datuk Hadhariah Syed Ismail, who wrote the unanimous decision, said the panel agreed with the prosecution’s argument that in the MACC Act, there is a specific Section 17 to describe commercial organisations (company or partnership). And if Section 3(c) is meant to only refer to commercial organisations, that would mean an organisation that does not carry business, such as an NGO, that receives gratification cannot be charged under Section 23 for abuse of power. “This could not have been the intention of the Parliament. We agree with the appellant’s (prosecution’s) contention that the word “affairs” in Section 3(c) of the Act is clear and plain, and should be given its ordinary meaning, and therefore, the principle of noscitur a sociss (an unclear or ambiguous word in statute) has no application. “It is observed the High Court judge did not make any finding on the maxis noscitor a sociss,” Hadhariah said, ruling that High Court judge Datuk Muhammad Jamil Hussin had erred in his decision to strike out the charges. The defence had argued that the charges were made under Section 23 of the MACC Act where the term “associate” only refers to business organisations. Subsection (1) of Section 23 of the MACC Act stipulates that an officer of a public body shall be presumed, until the contrary is proved, to use his office or position for any gratification, whether for himself, COA: Charges against Muhyiddin clear enough, unambiguous by Hafiz Yatim theedgemalaysia.com by Tarani Palani theedgemalaysia.com stopped on Sept 10 last year because his party withdrew its support for the unity government, to instead become a “third force” in the opposition. This was in response to the withdrawal of all 47 charges faced by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi in his criminal trial. Syed Saddiq also cited MPs who were formerly with the opposition bloc, but had thrown their support behind Anwar, had received their allocations. Those he named were Datuk Indera Suhaili Abdul Rahman (Labuan), Zahari Kechik (Jeli), Mohd Azizi Abu Naim (Gua Musang), Datuk Iskandar Dzulkarnain Abdul Khalid (Kuala Kangsar), and Datuk Dr Zulkafperi Hanapi (Tanjong Karang). Speaking to the media during a brief press conference on Monday, Syed Saddiq said that the objective of the legal action was to end “vengeful politics” and to ensure that the people who were impacted get their due. “These funds are meant for the needy, for welfare, for repair works, and to get diapers and wheelchairs for the elderly. They are the ones who are impacted the most when funds are allocated within a political lens,” he said. his relative, or associate, when he makes a decision or takes any action in which such officer, or his relative or associate of his, has an interest, whether directly or indirectly. The prosecution argued that the word “associate” includes a society and is synonymous with organisations where Parti Pribumi Bersatu Malaysia (Bersatu) is considered an organisation within the meaning of Section 3(c) of the MACC Act. Charges not ambiguous Hadhariah, who had sat with Datuk Azmi Ariffin and Datuk SM Komathy Suppiah, also said the charges levelled against the Pagoh Member of Parliament were not ambiguous, as claimed by the High Court judge. The High Court judge had said it was not stated in each of the four charges whether Muhyiddin “made any decision” or “took any action” for gratification, and hence the judge claimed the prosecution did not state any offence. The COA found that the respondent (Muhyiddin) was an officer of a public body at the time, and that he had used his position to obtain gratification and used the gratification for himself, his relative, or associate. Read the full story

tuesday may 7, 2024 17 The E dge C E O m o rning brief world WASHINGTON (May 6): US President Joe Biden will meet Middle East ally, Jordan’s King Abdullah II, at the White House on Monday, with prospects for a Gaza ceasefire appearing slim and Palestinian Islamist group Hamas and Israeli officials blaming each other for the impasse. On Sunday, Hamas reiterated its demand for an end to the war, in exchange for the freeing of hostages, and Israeli Prime Minister Benjamin Netanyahu flatly ruled that out. Hamas also attacked the Kerem Shalom crossing into Gaza that Israel said killed three of its soldiers. A Jordanian diplomat told Reuters that Monday’s meeting between Biden and King Abdullah is not a formal bilateral meeting but an informal private meeting. It comes as the Biden administration and Israeli officials remain at odds over Israel’s planned military incursion in the southern Gaza city of Rafah, where it told Palestinians to start evacuating some parts on Monday. Biden last met King Abdullah at the White House in February and the two longtime allies discussed a daunting list of challenges, including the looming Israeli ground offensive in southern Gaza and the suffering of the Palestinian civilians. Jordan and other Arab states have been highly critical of Israel’s actions and have been demanding a ceasefire since mid-October, as civilian casualties began to skyrocket. The war began after Hamas stunned Israel with a cross-border raid on Oct 7 last year, in which 1,200 people were killed and 252 hostages taken, according to Israeli tallies. More than 34,600 Palestinians have been killed and more than 77,000 wounded in Israel’s assault, according to Gaza’s health ministry. Biden last spoke to Netanyahu on April 28 and “reiterated his clear position” on a possible invasion of Rafah, the White House said. The US president has been vocal in his demand that Israel not undertake a ground offensive in Rafah without a plan to protect Palestinian civilians. With pro-Palestinian protests erupting across US college campuses, Biden faces increasing pressure politically to convince Israel to hold off on an invasion. Biden addressed the campus unrest over the war in Gaza last week, but said that the campus protests had not forced him to reconsider his policies in the Middle East. Biden to meet Jordan’s King Abdullah as Gaza ceasefire hopes dim COPENHAGEN (May 6): Disruption to Red Sea container shipping is rising, Maersk said on Monday, forecasting this will cut the industry’s capacity between Asia and Europe by up to 20% in the second quarter. Maersk and other shipping companies have diverted vessels around Africa’s Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher. “The risk zone has expanded, and attacks are reaching further offshore,” Denmark’s Maersk said. “This has forced our vessels to lengthen their journey further, resulting in additional time and costs to get your cargo to its destination for the time being,” it added in an updated advisory to customers. Maersk’s fuel costs on the affected routes between Asia and Europe are now 40% higher per journey, a spokesperson said. Germany’s Hapag-Lloyd, which has said it believes the crisis can be overcome before the end of 2024, is also rerouting vessels for the time being. “The attacks in the Red Sea and the Gulf of Aden are moving further and further out to sea. That is why we are avoiding this area altogether,” Hapag-Lloyd said in e-mailed comments. By routing traffic away from the Suez Canal, Maersk estimated that the container industry’s capacity between Asia and northern Europe and the Mediterranean would be cut by between 15% and 20% in the second quarter. Maersk says Red Sea disruption could cut Asia-Europe capacity by 20% Complex The disruptions cause ripple effects across several other container freight routes, particularly from Asia to the east and west coasts of South America, Maersk’s spokesperson said, adding that the Red Sea situation was complex and continued to evolve. Maersk, viewed as a barometer of world trade, forecast last week that disruptions would last at least until the end of 2024. Meanwhile, France’s CMA CGM is still sending some vessels via the Red Sea escorted by French or other European navy frigates, but the majority of its ships are being rerouted around Africa, CEO and chair Rodolphe Saade told Le Monde. “The problem is that you have to call at ports that are not the final destination and to transship onto smaller vessels,” Saade told the newspaper in an interview published on Monday. “Tangiers is saturated and alternatives need to be found — like (Spain’s) Algeciras or Valencia,” he added. The knock-on effects of voyages around Africa include bottlenecks and vessel bunching, where several ships arrive at port at the same time, as well as equipment and capacity shortages. “We are doing what we can to boost reliability, including sailing faster and adding capacity,” Maersk said, adding that it had so far leased more than 125,000 additional containers. by Stine Jacobsen Reuters by Nandita Bose & Steve Holland Reuters reuters reuters

tuesday may 7, 2024 18 The E dge C E O m o rning brief world RAFAH, Gaza Strip (May 6): Israel’s military carried out airstrikes in Rafah on Monday, residents said, hours after Israel told Palestinians to evacuate parts of the southern Gaza city where more than a million people uprooted by the war have been sheltering. Fears are growing of a full-blown assault in Rafah, long threatened by Israel, against holdouts of the Palestinian militant group Hamas as ceasefire talks in Cairo stall. Hamas official Izzat al-Rashiq said in a statement that any Israeli operation in Rafah would put the truce talks in jeopardy. There was no immediate comment from Israel, which Hamas-affiliated Al-Aqsa TV said had targeted areas in eastern Rafah near neighbourhoods given evacuation orders. Instructed by Arabic text messages, phone calls, and flyers to move to what the Israeli military called an “expanded humanitarian zone” around 20 km (12 miles) away, some Palestinian families began trundling away in chilly spring rain. Some piled children and possessions onto donkey carts, while others left by pick-up or on foot through muddy streets. “It has been raining heavily and we don’t know where to go. I have been worried that this day may come, I have now to see where I can take my family,” one refugee, Abu Raed, told Reuters via a chat app. A senior Hamas official said the evacuation order was a “dangerous escalation” that would have consequences. “The US administration, alongside the occupation, bears responsibility for this terrorism,” the official, Sami Abu Zuhri, told Reuters, referring to Israel’s alliance with Washington. Hamas said later in a statement that any offensive in Rafah would not be a “picnic” for Israeli forces and said it was fully prepared to defend Palestinians there. Aid agencies have warned that the evacuation order will lead to an even worse humanitarian disaster in the crowded coastal enclave of 2.3 million people reeling from seven months of war. “Forcing over a million displaced Palestinians from Rafah to evacuate without a safe destination is not only unlawful but would lead to catastrophic consequences,” British charity ActionAid said. Israel’s military said it had urged residents of Rafah to evacuate in a “limited scope” operation. It gave no specific reasons nor did it say if offensive action might follow. Nick Maynard, a British surgeon trying to leave Gaza on Monday, said in a voice message from the Gaza side of the Rafah crossing into Egypt: “Two huge bombs have just gone off immediately outside the crossing. There’s a lot of gunfire as well about 100 meters from us. We are very unclear whether we will get out.” “Driving through Rafah, the tension was palpable with people evacuating as rapidly as they could.” ‘Biggest catastrophe’ Witnesses said the areas in and around Rafah where Israel wants to move people are already crowded with little room for more tents. “The biggest genocide, the biggest catastrophe will take place in Rafah. I call on the whole Arab world to interfere for a ceasefire — let them interfere and save us from what we are in,” said Aminah Adwan, a displaced Palestinian. Israel has been threatening to launch incursions in Rafah, which it says harbours thousands of Hamas fighters and potentially dozens of hostages. Victory is impossible without taking Rafah, it says. The prospect of a high-casualty operation worries Western powers and neighbouring Egypt, which is trying to mediate a new round of truce talks between Israel and Hamas under which the Palestinian Islamist group might free some hostages. But an unnamed “high-level” source was quoted by Egypt’s state-affiliated Al Qahera news TV as saying on Monday that talks had hit an impasse since Hamas launched an attack in the vicinity of the Kerem Shalom crossing into Gaza on Sunday, killing four Israeli soldiers. Egypt urged Israel to exercise the “highest levels of self-restraint” in Gaza, saying by Mohammed Salem & Nidal al-Mughrabi Reuters Israel strikes Gaza city of Rafah after evacuation order any military operation there would carry grave humanitarian risks. Earlier, security sources said Egypt had raised its military level of preparedness in northern Sinai, which borders Gaza. The Rafah plan has opened an unusually public rift between Israel and Washington, which has repeatedly warned its ally not to attack the city because of potential civilian casualties. On Monday a spokesperson for the US National Security Council said the ongoing talks for a hostage deal were the best way to avoid an invasion of Rafah, adding that President Joe Biden would speak with Israeli Prime Minister Benjamin Netanyahu later in the day. An Israeli broadcaster, Army Radio, said the evacuations were focused on a few peripheral districts of Rafah, from which people would be directed to tent cities in nearby Khan Younis and Al Muwassi. In an overnight aerial attack on Rafah, Israeli planes hit 10 houses, killing 20 people and wounding several, medical officials said. The Israeli military said it had attacked the site of Sunday’s mortar launch that killed the four Israeli soldiers as well as a group of gunmen. The war began after Hamas stunned Israel with a cross-border raid on Oct 7 in which 1,200 people were killed and 252 hostages taken, according to Israeli tallies. More than 34,700 Palestinians have been killed and more than 78,000 have been wounded in Israel’s assault, according to Gaza’s health ministry. The United Nations has accused Israel of denying aid to Gazans, with World Food Programme head Cindy McCain saying in a weekend interview that there was already “full-blown famine” in the north of the territory.

tuesday may 7, 2024 19 The E dge C E O m o rning brief world (May 6): One of China’s most-watched developers has told some investors that it readied cash for an upcoming yuan bond payment, a move that may boost a firm that’s faced concern about its liquidity amid a broader property debt crisis. State-backed builder China Vanke Co told some investors recently that it has readied cash to repay its 1.45 billion yuan (RM953.1 million) note due on May 25, according to people familiar with the matter. The security is indicated at 97.6 yuan, suggesting investors’ high conviction that the issuer will be able to repay the debt at maturity, according to Bloomberg-compiled data. The state-backed developer has become the latest flashpoint in the nation’s property crisis, and sought to assuage concern about its ability to stave off default after a market selloff in recent months. The company will exit non-core operations and divest assets as the developer seeks to boost liquidity amid the sector’s unprecedented downturn, according to a memo from a shareholder meeting in April. Vanke has another offshore bond due this year, a US$600 million (RM2.86 billion) bond that will mature on June 7, according to Bloomberg-compiled data. The bond is traded at 96.9 cents on the dollar, Bloomberg-compiled data shows. But the company’s longer-duration dollar bonds maturing in 2028 and 2029 are still traded below 60 cents on the dollar, a territory usually considered distressed. China Vanke says it has the money to pay upcoming bonds due (May 6): A Chinese programme providing state guarantees to developer bonds will be put to the test this week, when payments come due from one of the most indebted builders. The sum owed by Country Garden Holdings Co is relatively small — 65.95 million yuan (RM43.35 million) for two interest payments. Both notes are guaranteed by China Bond Insurance Co, a stateowned credit-support provider at the heart of a programme introduced by authorities in August 2022 to help private developers avoid liquidity crunches. None of the builders that have used the programme have missed payments on the guaranteed securities. Yet while Country Garden itself recently dodged its first local default on yuan bonds, strains have mounted after it missed payments on dollar notes last year. The builder is fighting a liquidation petition filed by a creditor in a Hong Kong court, and the first hearing is scheduled for May 17. “It is unclear whether Country Garden has the cash and willingness to pay the coupon given the sharp and continued contraction of its contracted sales,” said Zerlina Zeng, senior credit analyst at Creditsights Inc. “However, we expect China Bond to step in if Country Garden misses the payment as failing to do would shake market confidence towards the bond guarantee programme.” So far at least 33 bonds have been issued by private developers via the programme, with 33.7 billion yuan raised in total, according to Bloomberg-compiled data. Because payments on most of these bonds won’t be due until 2025 or 2026, the programme hasn’t faced a real test so far. Country Garden’s sheer size — with more than 3,000 housing projects in mainly smaller cities, according to its 2023 interim report — underscores its importance to the broader economy and the stakes for govCountry Garden deadlines the first big test of bond guarantees ernment if the guarantee programme has to be tapped. Aside from Country Garden, private developers that have issued bonds via the programme include defaulted builder CIFI Holdings Group Co, as well as Longfor Group Holdings Ltd and Seazen Group Ltd, among others. The programme is aimed at shoring up a sector that is still deeply mired in debt. During the boom years, many home buyers paid developers in advance for unfinished apartments. Now Chinese private developers face a four trillion yuan funding gap to complete pre-sold homes, according to a research report by Goldman Sachs Group Inc. Once China’s largest developer by sales, Country Garden has been hit hard by the property crisis and now is saddled with 1.36 trillion yuan of total liabilities, according to its unaudited 2023 interim results. The Foshan-based company reported contracted sales for April of 3.9 billion yuan, compared with 22.7 billion yuan in the same period last year. Bloomberg Bloomberg Country Garden bonds guaranteed by China Bond Insurance Issue date Amount issued (Yuan) Coupon (%) Tenor (years) Sept 19, 2022 1.5 bil 3.2 3 Dec 26, 2022 1 bil 4.3 3 May 9, 2023 900 mil 3.95 2 May 9, 2023 800 mil 3.8 2 Country Garden Holdings Co's bonds guaranteed by China Bond Insurance Co will be put to the test this week when payments come due for two bonds. bloomberg

tuesday may 7, 2024 20 The E dge C E O m o rning brief world (May 6): The US Securities and Exchange Commission warned Robinhood Markets Inc that it faces an enforcement action over its crypto business — the latest sign that the regulator isn’t letting up on its years-long crackdown on digital assets. Robinhood, which is best known for stock trading, said on Monday that the SEC’s enforcement staff had sent the firm a Wells notice, indicating that it made an initial determination to recommend enforcement action. The company’s shares rose as much as 2.8% in New York. The company will have the opportunity to respond to the SEC’s allegations before the regulator takes any action. Sometimes, the response persuades the SEC to back off. If not, then the regulator can sue or settle with Robinhood to resolve the probe. Robinhood’s chief legal officer, Dan Gallagher, said in a statement that the firm was disappointed by the move and that company officials “firmly believe that the assets listed on our platform are not securities.” The SEC declined to comment. CFTC Chairman Behnam Testifies Before House Agriculture Committee The SEC under under Chair Gary Gensler has argued that most tokens are subject to SEC rules and that platforms where they trade should be registered with the agency. The SEC has brought cases against other high-profile crypto brokerages and trading platforms, including Coinbase Global Inc. To decide whether an asset is covered by its securities rules, the SEC relies on a test laid out in a 1946 Supreme Court case. Crypto advocates say many digital assets don’t meet that standard and that the SEC should provide revised rules to take into account the unique characteristics of the asset class. Robinhood previously disclosed that it received an investigative subpoena about its cryptocurrency listings and custody, among other topics. Although the company has stopped offering some tokens, it still offers more than a dozen including Bitcoin, Ether, Litecoin and Aave and Chainlink, according to its website. Digital assets are an important piece of Robinhood’s trading business, though customer enthusiasm has waned. As a share of Robinhood’s trading-based revenue, crypto has been in decline since a pandemic-era boom. Crypto made up less than one-fifth of Robinhood’s transaction-based revenue last year, compared with nearly one-third in 2021. SEC warns Robinhood that its crypto business faces lawsuit (May 6): The Biden administration is opening applications for US$285 million (RM1.3 billion) in federal funding to set up an institute focused on digital twin technology for the semiconductor industry, which uses virtual models of components to help reduce development and manufacturing costs. The funding is part of the 2022 Chips and Science Act, which includes US$11 billion for semiconductor research and development. Officials said they anticipate the investment will help the US pivot to more advanced chip technology as it’s developed, limiting reliance on foreign supply chains. Digital twin technology can leverage artificial intelligence to optimise semiconductor manufacturing, National Institute of Standards and Technology director Laurie E Locascio said on a call with reporters. The Commerce Department has provided almost US$33 billion in preliminary grants to chipmakers to build or expand sites, known as fabs, in the US. Now, the Biden administration is starting to unlock research initiatives. Fab investments are “how we win today,” said director of the White House Office of Science and Technology Policy Arati Prabhakar. “Chips R&D is how we win the future.” Digital twinning can reduce costs by improving capacity planning, production optimization, facility upgrades and provide real-time process adjustments, Locascio said. Project details will depend on applications received by a Sept 9 deadline, a senior administration official said. Awards are limited to institutions that are incorporated and have their principal place of business in the US. US to fund ‘digital twin’ projects for chips with US$285 mil by Alicia Diaz Bloomberg by Rick Green & Austin Weinstein Bloomberg bloomberg

tuesday may 7, 2024 21 The E dge C E O m o rning brief world (May 6): The eurozone’s economy is waiting for a resounding vote of confidence from its own consumers for its long-awaited rebound to finally take shape. With employment at a record, wages rising steeply and inflation not far from 2%, the conditions are there for people to get out and spend. Business surveys have started to offer some hope, and on the ground, Kaweh Nemati, a retail entrepreneur in Frankfurt, reckons it’s just a matter of time before shoppers return in numbers. “You have to remain positive and optimistic — everything else means giving up,” said Nemati, who owns a small boutique in the city’s Nordend district and heads the local neighbourhood’s trade association. “At some point, consumers will have to say ‘we’ve saved long enough’. And when the first domino falls, then hopefully it’ll take others along.” The economic pickup in 2024 marks the euro area’s best chance yet to draw a line on years of disruption, ranging from the pandemic to the cost-of-living crisis that then followed. And with manufacturing still sluggish, policymakers are counting on household spending to drive growth. The evidence so far suggests that didn’t really happen during the first quarter. While data last week showed the region exited a recession and all four of the eurozone’s biggest economies grew more than anticipated, the consumption picture was mixed, with both Germany and Italy still suffering from weak domestic demand. But French households did spend more, and there are some more recent hints that the consumer-driven rebound could be materialising. Services-sector activity in the eurozone reached an 11-month high in April, according to business surveys by S&P Global, with rising orders indicating that this momentum can be sustained. Dutch retailer giant Ahold Delhaize NV, owner of supermarket chain Albert Heijn BV, was upbeat in February about the outlook for European consumer demand after volumes were positive in the fourth quarter for the first time in over two years for various brands of Ahold Delhaize. “We’re at a turning point,” said Antonio Espasa, chief economist for Europe at Santander CIB, who cites wage growth, receding inflation and the prospect of interest-rate cuts by the European Central Bank (ECB) as drivers of demand in the second half and beyond. by Jana Randow Bloomberg Eurozone at turning point needs consumers to get out and spend From his desk in Boadilla Del Monte, a town just west of Madrid, Espasa has a good view of what such a recovery could look like. “Spain has seen stronger employment creation than other countries, real disposal income is growing faster,” he said. “At the same time, Spain’s population is expanding substantially. That’s very important for consumption. More people coming in means more people are spending.” Economists surveyed by Bloomberg predict private consumption in Spain will grow at twice the euro area’s pace, and nearly as much as in the US, where it’s helping the economy to expand at a significantly faster clip. If such effects can replicate across the region, that would amount to a recovery that ECB officials have long awaited, and predicted — having consistently overestimated a pickup in private consumption. Their latest projections, from March, could still be too optimistic. Espasa at Santander predicts an increase of just 0.7% this year and the median of economist estimates is for 1%. Both of those are lower than the 1.2% foreseen by central bank staff. Trying to work out the psyche of the region’s fickle consumers has long been a key obsession for the ECB. President Christine Lagarde recently singled out household behaviour as the biggest difference between the European and US economies, highlighting generous pandemic stimulus checks from Washington and fewer concerns over crises in the Middle East and Ukraine. “It’s fiscal, it’s energy, and it’s the natural tendency of the American consumers to have confidence to spend, not to save so much,” she told CNBC. It’s in Germany, Europe’s biggest economy, where the strength of consumption will make the most meaningful difference. Households there have been among the region’s most cautious, unsettled by the implications of the Ukraine war on the country’s cheap gas business model, and political indecision in a fractious government. Read the full story Read also: ECB rate cut case getting stronger, says chief economist bloomberg

tuesday may 7, 2024 22 The E dge C E O m o rning brief world Australia’s treasurer aims to chart ‘responsible’ middle path with second surplus in reach Buffett says India holds ‘unexplored’ opportunities for future Berkshire leaders Swiss Army Knife goes blade-less as weapons regulations tighten by Preeti Singh Bloomberg by Paula Doenecke Bloomberg by Stella Qiu & Renju Jose Reuters (May 6): Billionaire investor Warren Buffett said there are “load of opportunities” in India, but he’s leaving them to future management. At Berkshire Hathaway Inc’s annual meeting, the legendary chairman noted that his firm could find “unexplored or unattended” areas to invest in the country, which has one of the fastest growing economies in the world. “The question is do we have any advantage, in either insights into those businesses or contacts that will make possible some transaction that parties in India would particularly want us to participate,” Buffett said. He added that Berkshire is now known around the world and that its experience investing in Japanese markets has been “fascinating”. India’s stock market has delivered high returns for investors in recent years, and major figures like JPMorgan Chase & Co chief executive officer Jamie Dimon have expressed optimism about the country’s future. Global private equity firms have also ramped up their investments in India, as wealth managers boost their talent pool there. Berkshire Hathaway was previously invested in India’s One 97 Communications Ltd, which owns the payments company Paytm, but exited it through a US$164 million (RM777.36 million) block deal last year. For future investments in India, Buffett said that it’s “something that more energetic management at Berkshire could pursue”. SYDNEY (May 6): Australian Treasurer Jim Chalmers said on Monday that the government would chart a responsible middle path in the budget that will be handed down next week, putting a second surplus within reach despite more spending measures. The Treasury has said that it would bank 95% of additional revenue to avoid adding to the country’s inflation challenge, but that the spending measures in the budget would be “unavoidable” and “all warranted” amid high costs of living. “This is not the time for scorched-earth austerity. It would not be wise — when people are doing it tough and when the economy is soft — for us to slash and burn in this budget,” Chalmers said at a news conference. “We’re charting a responsible middle path. We’re striking the right balance in the budget that we will hand down in eight days’ time.” The Reserve Bank of Australia (RBA) faces a daunting task to get inflation back on target, and a surprisingly strong first quarter inflation report showed there was more work to do. Markets are wagering that the RBA will keep interest rates steady at 4.35% on Tuesday, but there is a 40% probability that the central bank may have to raise rates to 4.6% by September. The Labor government is expected to report a budget surplus on May 14, which will feature the government’s revamped stage three tax cuts, aimed at giving every Australian some tax relief. It will unveil more spending to fund the “Future made in Australia Act”, a subsidy programme to help the giant commodity exporter bolster domestic manufacturing and promote industries. (May 6): The Swiss Army Knife, the iconic, more than century-old fold-up tool used by whittlers, soldiers and even astronauts, will soon be available without a blade. Victorinox, the company behind the quintessentially Swiss product, is responding to tighter regulations around weapons around the world, Chief Executive Officer Carl Eisner told the Blick newspaper on Monday. Instead, it plans to add tools for cyclists and other functions to a gadget that usually also features scissors and a corkscrew. “We are concerned about the increasing regulation of knives due to the violence in the world,” Elsener said, citing laws in the UK and in Asian countries that permit knife-carrying only for work or outdoor activities. “In some markets, the blade creates an image of a weapon.” Last year, a man with a Victorinox knife in his pocket was fined in Osaka, Japan for carrying a dangerous object, Swissinfo reported in December. In Switzerland, a proposed minor revision to the weapons ordinance in 2016 prompted a member of parliament to ask, “Will the famous Swiss Army knife be banned?” “The increasing regulation of knives in various countries represents a major challenge for the company,” a company spokesman told Bloomberg News, confirming the Blick report. Victorinox’s pocketknives became famous when American soldiers brought them home as souvenirs after World War II. The company has been producing in Switzerland since 1897, supplying gadgets to the Swiss army as well as Nasa. Billionaire investor Warren Buffett noted that Berkshire could find ‘unexplored or unattended’ areas to invest in India, which has one of the fastest growing economies in the world. Reuters

tuesday may 7, 2024 23 The E dge C E O m o rning brief world Hedge funds’ options bets hand green investors a path to predicting returns by Sheryl Tian Tong Lee Bloomberg (May 6): If you want to know how your green stock portfolio is likely to perform next quarter, you should take a look at hedge funds’ options bets. That’s according to a newly published academic paper which looks at a decade’s worth of data from more than 1,900 hedge fund firms through 2022. A key finding of the study is that the buildup of hedge fund managers’ put and call options on a given green equity can be used to “predict the stock’s future returns”, George Aragon, a professor at Arizona State University and a co-author of the paper, said in an interview. The analysis feeds into a wider debate around green investing strategies, which have delivered mixed results in recent years. The S&P Global Clean Energy Index fell more than 20% last year as the impact of higher interest rates pummelled capital-intensive green projects. This year, it’s down another 12%. The S&P 500, by comparison, has gained about 30% since the beginning of 2023. High-profile Republicans have seized on such data to attack green investing as a dereliction of a portfolio manager’s fiduciary duty, leading to legal threats and outright bans on the wider environmental, social and governance (ESG) investing movement. Meanwhile, hedge fund managers are increasingly incorporating ESG metrics in their investments, according to research by analysts at UBS Group AG. Against that backdrop, the hedge fund industry’s approach to green investing is of particular interest. The authors of the paper, titled Are Hedge Funds Exploiting Climate Concerns?, posit that hedge funds have no “non-pecuniary preferences,” meaning their green bets are only made with a fiduciary goal in mind. The study found that hedge funds are generally better than the wider market at predicting changes in sentiment and pricing around green stocks, and of taking advantage of those shifts. For example, when the general level of interest in climate change slips — gauged by looking at the number of news stories on climate — hedge funds use put options to sell at pre-agreed prices as green stocks decline in value. Conversely, when there’s a higher level of general interest in climate change, hedge funds use call options to buy at pre-agreed prices in a rising market. Aragon, who didn’t single out individual hedge funds, said the findings suggest that investment managers using the strategy are consistently “more skilled at reading green sentiment and predicting how it translates to prices around green stocks, and then using sophisticated instruments like options to make bets.” For other investors looking to use this information to help support their own strategies, the clue is in the concentration of options, Aragon said. An increase in the proportion of hedge funds holding put options on green stocks from zero to 10% would predict an almost 17% decline in the stock’s price in the following quarter, he said. The price move is benchmark-adjusted, meaning it measures the excess decline versus other stocks with similar characteristics. Conversely, an increase in the proportion of hedge funds holding call options on green stocks from zero to 10% would predict a benchmark-adjusted increase in the stock’s price of close to 6% over the following quarter. The team of academics behind the research, which also includes Yuxiang Jiang of Southwestern University of Finance and Economics, Juha Joenvaara of Aalto University and Cristian Tiu of University at Buffalo, measured climate concern based on newsflow stemming from major US news media. The academics also explored a few other theses to gauge how hedge funds approach green investing strategies. One involved an analysis of how well hedge funds do with long-only green equity stakes, to see whether they’re simply better at picking the right stocks. By constructing “copycat portfolios” of stocks held by hedge funds (based on the funds’ regulatory so-called 13F filings), the researchers were able to compare how these performed against equivalent portfolios reflecting the holdings of brown hedge funds (defined as funds that historically have earned lower returns when green stocks do well). They also compared their results to a market portfolio of green stocks. The researchers found that the green copycat portfolio’s outperformance versus the market portfolio was “marginally significant” at 1%, Aragon said. However, held up against the brown portfolio, the outperformance was over 5%, he said. What’s more, hedge funds identified by the researchers as green — based on an analysis of their returns rather than client-facing labels or marketing — outperformed brown hedge funds by 7% on an annual basis, Aragon said. “The evidence suggests that certain hedge funds generate alpha from investors’ climate concerns,” he said. “Climate change will be a major subject of debate for investors this AGM season in Japan. The number of climate proposals has been rising and some proposals obtained 20% approval ratios in 2023. Proxy advisory firms and investors have modified their voting policies towards climate change, which may influence approval ratios this year,” said Bloomberg Intelligence’s Yasutake Homma.

tuesday may 7, 2024 24 The E dge C E O m o rning brief world At US$2 mil per minute, US treasuries mint cash like never before by Michael Mackenzie & Liz Capo McCormick Bloomberg (May 6): For the first time in nearly a generation, fixed income is living up to its name. This, at a certain level, is simply the consequence of benchmark rates in the US jumping from 0% to over 5% in a span two years. But at a time when all of Wall Street seems fixated on whether the Federal Reserve will actually cut interest rates this year — and heated arguments break out over whether the 10-year US bond should yield, say, 4.5% or 4.65% — it’s easy to lose sight of one important fact: That after being held hostage by zero-rate policies for almost two decades, US treasuries are finally reverting back to their traditional role in the economy. That is, as a source of income that investors can lock in and rely on, year after year, for years to come — regardless of where yields are at any given moment. The numbers tell the story. Last year, investors pocketed nearly US$900 billion (RM4.3 trillion) in annual interest from US government debt, double the average over the previous decade. That’s set to rise as over 90% of Treasuries carry coupons of 4% or more. In mid-2020, just 5% yielded that much. Because of the higher interest, investors are also better shielded against any jump in yields. Currently, rates would need to go up by over three-quarters of a percentage point over the next year before treasuries start to lose money, at least on paper. Over the past decade, that margin of safety at times virtually disappeared. “With the help of our friends at the Fed, they did put the income back in fixed income,” said Anne Walsh, who oversees about US$320 billion as chief investment officer of Guggenheim Partners Investment Management. “And fixed-income investors, we get to reap the benefits of higher yield. That’s a good thing.” Two recent economic trends have worked their favour. First is that, while inflation is tantalisingly close to the point where the Fed might consider cutting rates, lately, progress toward its 2% goal has stalled. That’s pushed out rate-cut expectations into at least the latter part of the year. Second, and perhaps more importantly, is simply that the economy keeps humming along (despite some signs of cooling in the labour market), which suggests the Fed won’t need to lower rates all that much when it does begin. Fed chair Jerome Powell underscored that wait-and-see approach in his remarks last week after the central bank held rates steady, while the traders currently see just two quarter-point cuts by year-end. At the start of the year, they priced in as many as six. “Nobody is focused anymore on what could go wrong if the wheels come off with the economy,” said Blake Gwinn, head of US interest-rate strategy at RBC Capital Markets. “And every month that goes by is another month that a cut didn’t happen.” As a result, safe assets like treasuries — from one-month T-bills to 30-year bonds — now have something to offer anyone looking for income. Money, money, money In February, the Congressional Budget Office projected that interest and dividends paid to individuals will rise to US$327 billion this year — more than double the amount in the mid-2010s — and keep increasing each year over the coming decade. In March alone, the Treasury Department paid out about US$89 billion in interest to debt holders — or roughly US$2 million a minute. It’s no small irony that the newfound income from treasuries may itself be playing a role in keeping the “higher-for-longer” narrative intact. A small, but growing number on Wall Street argue that, along with the surge in stock prices, the interest paid on treasuries and other bond investments is creating a material wealth effect among Americans, with the extra cash acting like stimulus checks supporting the surprisingly resilient economy. Of course, the whole point of owning US government bonds is that they aren’t supposed to lose money, are less volatile than equities and will provide a fixed rate of return above inflation. There’s no sugar-coating the fact that the very reason treasuries are back in demand as a buy-and-hold option — after years of yielding next to nothing — is because of brutal losses in recent years in the face of rampant inflation and the aggressive rate hikes to combat it. That reset, however painful, has now paved the way for higher future returns and a “more normal” fixed-income market. Investors have responded by piling in. Money-market funds — which invest in short-term securities like T-bills — saw their assets swell to a record US$6.1 trillion last month. Meanwhile, bond funds raked in US$300 billion in 2023 and US$191 billion so far this year, reversing outflows in 2022 that were the biggest in recent memory, according to EPFR data. Direct sales of Treasuries to individuals have jumped, too. All told, the amount of debt held by households and non-profits has surged 90% since the start of 2022 to a record US$5.7 trillion, according to Fed statistics. Read the full story bloomberg

tuesday may 7, 2024 25 The E dge C E O m o rning brief world Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (May 3, 2024) Capesize After an initially sluggish start to the week, the market picked up pace ahead of the impending holidays, particularly in the Pacific, leading to a slight uptick in the C5 index, which nudged up accordingly by 0.385 cents to US$9.965. Conditions in the Atlantic remained challenging as the week got underway, with sporadic improvements. As expected, mid-week was rather subdued with minimal activity, although Thursday marked a significant upswing post-holiday, driving the BCI 5TC up substantially by US$2,117, reaching US$19,670. Positive sentiment emerged particularly in the North Atlantic, with increased cargo enquiry and a tightening tonnage list and substantially stronger fixtures, reflecting a significant rise in the C8 index, which rose today by US$5,215 to US$17,429. As the week comes to an end, there’s a noticeable slowdown in activity, but optimism prevails. In the Pacific, the C5 index inched up by 0.255 to reach US$10.70, while the C3 index saw a more significant rise of 0.905, reaching 26.665. Overall, it has been a positive conclusion to the week, highlighted by the BCI 5TC climbing by US$2,496 to hit US$22,166, marking a substantial increase of US$4,913 for the week. Panamax A week whereby activity was largely fragmented by various holidays spread across the globe. The Atlantic basin saw minimal fresh demand but with a modest tonnage count rates held steady for most part for limited trans-Atlantic and front haul fixtures. A mini grain push came mid-week ex EC South America, rates nudged up for end May arrivals Asia with a host of fixtures concluded in excess of US$20,000 delivery SE Asia/India region for South American round voyages. Asia blighted by various holidays also lacked energy this week despite an obvious increase in Indonesia and Australia coal demand, with the Indonesian round coal trips being the most engaging beginning the week around the US$14,000 mark but increasing to closer to US$16,000 by the close. Unsurprisingly, with minimal support from the FFA market, there returned limited period news, although reports surfaced of an 82,000-dwt delivery in China achieving US$17,150 basis one-year period. Ultramax/Supramax With widespread holidays both in the Atlantic and Pacific regions it was a rather staggered week. The Atlantic generally saw softer tones as demand slipped from the US Gulf and Mediterranean. Mixed feels from the South Atlantic as the week closed some brokers saw increased volumes of fresh cargo. From Asia, rates remand rather flat albeit at reasonable levels. Fresh enquiry was limited from Southeast Asia, but tonnage supply able to keep up. From the Indian Ocean, demand remained again a rather sideways feel to the market during the course of the week. From the Atlantic, a 63,000-dwt fixed delivery Mississippi River to the Continent with wood pellets at US$20,000. Whilst a 60,000-dwt fixed a trip from US Gulf to the Far East in the mid US$20,000s. From Asia, a 53,000- dwt fixed delivery Vietnam for a trip via Indonesia redelivery China at US$17,000. Elsewhere, a 56,000-dwt fixed delivery WC India redelivery Far East at US$16,000. Period activity seen was limited, but a 63,000-dwt open Southeast Asia was heard fixed for 3/5 months trading redelivery Arabian Gulf — Japan at US$20,000. Handysize In a week littered with widespread holidays including Labour Day and the Greek Orthodox Easter, visible activity was muted and the overall sentiment across the handy sector was softer. Tonnage lists were said to have expanded this week across the Continent and the Mediterranean due to the limited visible fresh enquiry. In the South Atlantic, sources spoke of limited enquiry remaining for the first half of May. Whilst the US Gulf also remained under pressure a 43,000-dwt opening in Havanna was linked to fixing from SW Pass to the Eastern Mediterranean with an intended cargo of grains at US$9,250 and a 38,000-dwt fixed from Mobile to the UK-Continent with wood pellets at around US$11,000. Activity was also subdued across Asia, levels were said to have remained more stable with many expecting activity and positivity to return next week once a majority of holidays had concluded and players returned to their desks. Clean LR2 In the MEG this week LR2 freight managed enough activity to hold on from dropping. The TC1 rate for 75,000t MEG/Japan hovered around the WS205 and the 90,000t MEG/ UK-Continent TC20 voyage is currently pegged at US$6.1m, down from US$6.3m West of Suez, Mediterranean/East LR2’s softened again this week seeing the TC15 index drop by US$225,000 to US$3.34m. LR1 In the MEG, LR1 freight weakened a little this week. The 55,000t MEG/Japan index of TC5 lost 15 points to WS223.8. The 65kt MEG/UK-Continent of TC8 lost US$39,650 to US$4.87m. On the UK-Continent, the 60,000t ARA/West Africa has taken a recorrect down this week as the market has been quiet again. The TC16 index has gone from WS179.7 to WS169.2. MR MR’s in the MEG bounced down and back up this week. The TC17 35,000t MEG/ East Africa index bottomed out at WS340 mid-week down from WS411.4 but has since returned to WS360 at time of writing. Read the full report

tuesday may 7, 2024 26 The E dge C E O m o rning brief MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) SNS Network Technology Bhd 206.7 0.075 0.470 100.00 758.0 Ingenieur Gudang Bhd 126.0 -0.005 0.110 -15.38 166.8 Fintec Global Bhd 119.4 0.000 0.005 -50.00 29.6 Eversendai Corp Bhd 96.6 0.070 0.460 178.79 359.3 Dagang NeXchange Bhd 87.8 0.015 0.415 3.75 1,309.9 Iconic Worldwide BHD 87.6 0.010 0.115 8.57 194.0 My EG Services Bhd 78.0 -0.005 0.915 12.27 6,825.0 Powerwell Holdings Bhd 47.6 0.030 0.490 108.51 284.5 Sapura Energy Bhd 40.1 0.000 0.045 0.00 826.9 Velesto Energy Bhd 33.3 -0.005 0.265 15.22 2,177.1 Top Glove Corp Bhd 32.8 0.010 0.905 0.56 7,247.5 Bina Puri Holdings BHD 32.5 -0.005 0.070 -17.65 236.2 Minetech Resources Bhd 29.9 0.005 0.150 3.45 267.7 YTL Corp Bhd 29.0 0.080 3.340 76.72 36,666.5 Jiankun International Bhd 27.0 0.010 0.175 -7.89 86.5 MR DIY Group M Bhd 25.2 0.020 1.700 17.24 16,062.8 IFCA MSC Bhd 23.2 0.020 0.435 52.63 263.3 Topmix Bhd 22.5 0.005 0.470 null 185.1 Public Bank Bhd 22.4 0.080 4.200 -2.10 81,524.9 CAPITAL A BHD 22.1 0.015 0.840 1.82 3,573.9 Data as compiled on May 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Compugates Holdings BHd 0.015 50.00 1,108.0 0.00 82.5 TECHNA-X Bhd 0.015 50.00 4,400.7 0.00 70.5 Metronic Global Bhd 0.020 33.33 416.4 33.33 30.6 ZEN Tech International Bhd 0.020 33.33 399.1 0.00 62.2 Asia Poly Holdings Bhd 0.070 27.27 9,565.0 -12.50 67.1 BSL Corp Bhd 0.030 20.00 598.5 -33.33 57.9 Meridian Bhd 0.060 20.00 0.3 -36.84 13.6 SNS Network Technology Bhd 0.470 18.99 206,734.6 100.00 758.0 Eversendai Corp Bhd 0.460 17.95 96,592.5 178.79 359.3 Chin Hin Group Property Bhd 2.410 11.57 1,756.6 188.62 1,591.6 Inta Bina Group Bhd 0.430 10.26 19,335.8 65.38 233.0 PBA Holdings BHD 2.160 10.20 4,198.1 47.95 715.0 Iconic Worldwide BHD 0.115 9.52 87,592.4 8.57 194.0 Golden Land Bhd 0.305 8.93 32.7 22.00 65.4 Malayan United Industries Bhd 0.065 8.33 2,626.4 8.33 209.7 Widad Group Bhd 0.065 8.33 9,143.8 -86.60 201.3 HE Group Bhd 0.530 8.16 15,932.2 null 233.2 Minox International Group 0.265 8.16 4,324.9 -3.64 95.4 VSTECS Bhd 2.73 7.91 2274.7 106.82 973.4 BTM Resources Bhd 0.07 7.69 101 0 87.95 Data as compiled on May 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Borneo Oil Bhd 0.005 -50.00 9,915.5 -66.67 60.0 EA Holdings Bhd 0.005 -50.00 10.0 -50.00 32.3 Hong Seng Consolidated Bhd 0.010 -33.33 15,073.5 -60.00 51.1 Saudee Group Bhd 0.020 -33.33 2,278.3 -20.00 31.2 TWL Holdings Bhd 0.025 -16.67 13,312.4 -16.67 143.4 XOX Networks Bhd 0.025 -16.67 15.4 -28.57 28.4 Bertam Alliance Bhd 0.110 -15.38 80.0 -26.67 35.5 Wellspire Holdings Bhd 0.675 -12.90 5,391.1 2.27 480.7 Vizione Holdings Bhd 0.035 -12.50 10.3 -41.67 71.6 Classita Holdings Bhd 0.040 -11.11 1,331.4 -11.11 49.3 Hubline Bhd 0.040 -11.11 8,069.2 0.00 171.6 ECM Libra Group Bhd 0.190 -9.52 2.1 0.00 94.1 Mentiga Corp BHD 0.525 -9.48 99.8 -25 36.75 Johan Holdings Bhd 0.050 -9.09 138.1 -23.08 58.4 Y&G Corp Bhd 0.600 -9.09 0.5 -28.57 131.1 Digistar Corp Bhd 0.055 -8.33 596.2 -8.33 26.1 Euro Holdings Bhd 0.055 -8.33 1,544.30 -35.29 73.0 PUC BHD 0.055 -8.33 1,890.9 37.50 135.7 TechnoDex Bhd 0.060 -7.69 0.1 -25.00 50.63 Zelan Bhd 0.060 -7.69 168.9 -25.00 50.7 Data as compiled on May 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Nestle Malaysia Bhd 128.000 -0.300 7.3 8.84 30,016.0 Ajinomoto Malaysia Bhd 20.040 -0.260 549.5 26.04 1,218.4 Petronas Dagangan Bhd 21.660 -0.200 109.2 -0.82 21,518.2 LPI Capital Bhd 12.200 -0.180 47.4 2.01 4,860.3 Ta Ann Holdings Bhd 3.930 -0.160 1051.5 7.38 1,731.0 Malpac Holdings BHD 0.905 -0.125 5.0 -10.40 67.9 Wellspire Holdings Bhd 0.675 -0.100 5391.1 2.27 480.7 British American Tobacco M Bhd 8.470 -0.090 56.9 -8.83 2,418.4 Pertama Digital BHD 2.400 -0.090 11003.2 -8.05 1,051.7 Chin Teck Plantations BHD 7.450 -0.080 109.0 -1.45 680.7 Heineken Malaysia Bhd 23.320 -0.080 86.3 -3.40 7,044.9 Amway Malaysia Holdings Bhd 7.230 -0.070 22.4 29.71 1,188.5 Globetronics Technology BHD 1.250 -0.070 9888.5 -22.28 843.8 Kluang Rubber Co Malaya BHD 4.760 -0.070 6.2 31.49 295.9 Malayan Cement Bhd 5.100 -0.070 1513.5 20.57 6,718.2 IOI Corp Bhd 4.030 -0.060 1272.8 2.54 25,000.9 Lysaght Galvanized Steel Bhd 2.610 -0.060 27.7 17.57 108.5 Oriental Interest Bhd 1.220 -0.060 3.4 0.00 566.8 Supercomnet Technologies Bhd 1.540 -0.060 5,043.1 26.23 1,268.1 Yinson Holdings Bhd 2.420 -0.060 5,148.5 -3.20 7325.51 Data as compiled on May 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Sam Engineering & Equipment 5.540 0.380 3967.4 38.78 3,750.5 Dutch Lady Milk Industries BHD 34.500 0.280 36.6 48.96 2,208.0 Chin Hin Group Property Bhd 2.410 0.250 1756.6 188.62 1,591.6 Fraser & Neave Holdings Bhd 32.240 0.240 147.7 15.17 11,824.9 PBA Holdings BHD 2.160 0.200 4198.1 47.95 715.0 VSTECS Bhd 2.730 0.200 2274.7 106.82 973.4 Mega First Corp BHD 4.790 0.170 630.9 29.81 4,515.8 Frontken Corp Bhd 4.090 0.160 7050.5 26.23 6,433.2 Dufu Technology Corp Bhd 2.350 0.150 8808.4 23.68 1,247.0 Hume Cement Industries Bhd 3.130 0.150 3273.3 39.11 1,966.4 Allianz Malaysia Bhd 21.320 0.140 5.7 15.62 3,794.3 MSM Malaysia Holdings Bhd 3.450 0.130 1866.5 114.29 2,425.3 TIME dotCom Bhd 5.290 0.130 2485.5 -0.72 9,780.3 HeiTech Padu Bhd 2.200 0.120 4592.9 150.00 222.7 Padini Holdings Bhd 3.730 0.120 1264.5 6.27 2,454.0 YTL Power International Bhd 4.910 0.120 20528.8 93.31 39,888.6 Kelington Group Bhd 2.840 0.110 3321.4 30.88 1,889.5 KSL Holdings Bhd 1.850 0.110 5527.9 66.67 1,881.9 Scientex Packaging Ayer Keroh 2.070 0.110 7.7 -7.17 725.8 CIMB Group Holdings Bhd 6.750 0.100 21564.2 16.64 72,089.0 Data as compiled on May 6, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,675.68 450.02 1.18 S&P 500 * 5,127.79 63.59 1.26 NASDAQ 100 * 17,890.79 349.25 1.99 FTSE 100 * 8,172.15 41.34 0.51 AUSTRALIA 7,682.37 53.41 0.70 CHINA 3,140.72 35.90 1.16 HONG KONG 18,578.30 102.38 0.55 INDIA 73,898.26 20.11 0.03 INDONESIA 7,135.89 1.17 0.02 JAPAN 38,236.07 -37.98 -0.10 KOREA 2,676.63 -7.02 -0.26 PHILIPPINES 6,652.49 36.94 0.56 SINGAPORE 3,303.19 10.26 0.31 TAIWAN 20,523.31 192.99 0.95 THAILAND 1,369.92 6.67 0.49 VIETNAM 1,241.58 20.55 1.68 Data as compiled on May 6, 2024 Source: Bloomberg CPO RM 3,861 17.00 OIL US$ 83.57 0.61 RM/USD 4.7393 RM/SGD 3.5099 RM/AUD 3.1405 RM/GBP 5.9622 RM/EUR 5.1052 * Based on previous day’s closing 1,597.39