The Edge - 20 June 2024

ceoMorningBrief Thursday, JUne 20, 2024 Issue 782/2024 theedgemalaysia.com

CEOMorningBrief THURSDAY, JUNE 20, 2024 ISSUE 782/2024 theedgemalaysia.com OIL HITS SEVEN-WEEK HIGH ON DEMAND HOPES, WAR JITTERS p18 HOME: Sarawak discovers RM1.25 trillion worth of ore deposits — report p2 LHDN says has identified individuals, companies involved in crypto trading p2 Amir Hamzah: 100,000 Budi Madani diesel subsidy applications approved p4 Top Glove expects lower costs, US demand shift from China p5 KTI Landmark closes 5% below IPO price on ACE Market debut p9 China eyes plan to connect Southeast Asian rail links, including ECRL Chinese premier Li Qiang also hails Malaysia-China relationship as exemplary and wants closer ties to address global challenges together. See reports on Page 3.

THURSDAY JUNE 20, 2024 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe 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] Sarawak discovers RM1.25 tril worth of ore deposits — report LHDN says has identified individuals, companies involved in crypto trading KUALA LUMPUR (June 19): The Sarawak government discovered some RM1.25 trillion worth of gold, rare earth, bauxite and other precious metals, The Vibes reported, citing Deputy Premier Datuk Amar Awang Tengah Ali Hassan. The state’s Geological Department found the potential resources after a survey covering 32% of Sarawak’s total landmass theedgemalaysia.com Bernama HOME PUTRAJAYA (June 19): The Inland Revenue Board (LHDN) has identified several individuals and companies engaged in cryptocurrency trading as part of efforts to curb tax revenue leakage and enhance national tax administration LHDN chief executive officer Datuk Dr Abu Tariq Jamaluddin said the high frequency of cryptocurrency trading transactions has prompted LHDN to review data for potential tax implications. “We understand that if there are a lot of transactions, profits from cryptocurrency trading are taxable. “Individuals engaged in high-volume transactions are not reporting these activities to us,” he told reporters after presenting certificates to participants of the Tax Corporate Governance (TCG) Programme Wednesday. Recently, LHDN launched Ops Token in collaboration with the police and CyberSecurity Malaysia (CSM) to combat tax revenue leakage in cryptocurrency trading, covering 10 locations across the Klang Valley. Abu Tariq emphasised that individuals engaged in cryptocurrency trading in Malaysia are liable for income tax and those needing clarification on tax matters can reach out to LHDN or access the guidelines here. Earlier in his speech, Abu Tariq highlighted that the TCG programme aims to provide a comprehensive understanding of taxpayer management, tax administration procedures, and tax risk management. It also aims to foster a collaborative relationship between taxpayers and LHDN to resolve tax matters through consultation rather than confrontation. “Through TCG, organisations can deepen their comprehension of tax regulations related to business activities and fortify their internal systems for sustained tax compliance,” he said. LHDN introduced TCG on March 1, 2022, as part of its initiative to bolster voluntary compliance efforts, emphasising cooperation between taxpayers and LHDN as the national tax authority. The programme was launched in two phases: a pilot project running from June 1, 2022, to June 30, 2024, followed by full implementation starting July 1 this year. of 12.4 million hectares, Amar Awang reportedly said, according to the news portal. The government plans to survey another 30% of Sarawak’s land, he noted. “There is enormous potential for more discoveries,” he was quoted as saying. “We… are confident of finding more new mineral deposits.” Gold was initially found only in Bau district, Amar Awang said. “We now have discovered big gold deposits in Sri Aman district and are planning to use Canadian technology to tap the mineral resources in Sarawak,” he added. Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hassan was cited by The Vibes as saying that the state’s government discovered some RM1.25 trillion worth of gold, rare earth, bauxite and other precious metals. BERNAMA

THURSDAY JUNE 20, 2024 3 THEEDGE CEO MORNING BRIEF HOME Chinese premier hails exemplary Malaysia-China relationship, wants closer ties to address global challenges China eyes plan to connect Southeast Asian rail links, including ECRL BY DANIAL AZHAR & ROZANNA LATIFF Reuters Bernama KUALA LUMPUR (June 19): China said it was willing to study a plan to connect Malaysia’s US$10-billion (RM47-billion) East Coast Rail Link (ECRL) to other China-backed railway projects in Laos and Thailand, potentially expanding Beijing’s Belt and Road initiative across Southeast Asia. Chinese Premier Li Qiang, who is on a three-day visit to Malaysia, said on Wednesday the proposal would make the central line of a proposed Pan-Asia Railway, running from Kunming in China to Singapore, a reality. “This will better promote the construction of new international land and sea trade corridors, enhance regional connectivity, and deepen the building of the Asean community,” Li said. Li was speaking during a ground-breaking ceremony at a construction site for the ECRL — a 665km railway that will link Peninsular Malaysia’s east and west coasts by the end of 2026. Malaysia’s government said in March it would consider extending the China-backed project to its border with Thailand. Li is on the third leg of a trip that has included New Zealand and Australia, as China looks to expand influence and investments in the Asia-Pacific region amid an ongoing rivalry with the US. He met Malaysian Prime Minister Datuk Seri Anwar Ibrahim in the administrative capital of Putrajaya, following his arrival in Kuala Lumpur on Tuesday for a visit to mark 50 years of diplomatic ties between the two countries. After Wednesday’s closed-door meeting, Li and Anwar witnessed the signing of more than a dozen pacts, including renewing a five-year programme to collaborate in areas such as trade and investment, agriculture, manufacturing, infrastructure and financial services, a statement after the meeting showed. The programme, which will expire in 2028, was first introduced in 2013. Fresh durian imports China also agreed to allow imports of fresh durian from Malaysia after it meets sanitary requirements, the statement added. Malaysia, one of the world’s biggest producers of the spiky, smelly fruit, was previously allowed to ship only the whole frozen fruit and its products to China, with exports valued at RM1.19 billion in 2023. The two countries also vowed to review visa-free travel arrangements set to expire in coming months. China has been Malaysia’s largest trading partner since 2009, and the foreign ministry said total trade was valued at US$98.9 billion in 2023. Anwar has pledged to remain neutral on China’s geopolitical rivalry with the US. Malaysia has announced large investments by companies from both countries this year, including from China’s ByteDance and US tech giants Google and Microsoft. Anwar has said Malaysia considered China an important trading ally and accusedsome Western powers of “China-phobia”, amid ongoingclashes between neighbouring the Philippines and China in the disputed South China Sea. China claims almost the entire South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam. Anwar and Li on Wednesday agreed that China and relevant countries from the 10-member Association of Southeast Asian Nations (Asean) should independently handle the South China Sea issue, according to a report by Chinese news agency Xinhua. The two leaders also pledged to work towards an early conclusion of a free trade agreement between China and Asean, Xinhua reported. KUALA LUMPUR (June 19): China will continue to work with Malaysia in advancing their friendship and bilateral relations for mutual benefit and a brighter future for both nations, said its Premier Li Qiang. Speaking at a dinner to commemorate the 50th anniversary of Malaysia-China bilateral relations, which was attended by Prime Minister Datuk Seri Anwar Ibrahim here on Wednesday, Li said the relationship is a fine example of relations between countries in the region. Li emphasised the milestone as a new starting point for both nations to chart a stronger and more prosperous shared future together. “Be it in the past, present or future, friendship remains the defining feature of China-Malaysia relations. We have brought this relationship to a new starting point, and we share the aspiration to carry it forward to future generations,” he said. Towards that, Li highlighted four proposals that both countries can focus on to build a stronger relationship going forward. The first, he said is to enhance the traditional friendship and consolidate the foundation for bilateral relations. “It is important to keep to the right direction in growing this bilateral relation, respect each other’s core interests and major concerns, build stronger political mutual trust, and pursue wide-ranging cooperation in the context of building a China-Malaysia community with a shared future,” he said. Secondly, Li said there is a need to synergise development strategies of the two countries while expanding on their mutual interests. Read also: Malaysia, China ink over a dozen deals on digital economy, robotics and agriculture Over 63,000 Malaysian growers to benefit from export of fresh durians to China — minister Malaysia will see full recovery in Chinese tourist arrivals — HSBC Read the full story

THURSDAY JUNE 20, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 19): Malaysia’s upcoming fuel subsidy rationalisation will likely hurt demand for mid-market cars though it would be business-as-usual for the lower-end segment, Kenanga Investment Bank said on Wednesday. That would mean a “two-speed” automotive market for 2024, the research house said in a note, recommending that its client stay “neutral” on the sector. The middle-class may refrain from buying new cars and either settle on smaller ones or switch to electric vehicles with the fuel subsidy rationalisation in mind, it noted. For now, the industry’s earnings visibility is still “good,” Kenanga said. Bookings backlog totalled 200,000 units at the end of May. More than half of the backlog is made up of new models, indicating the appeal of new models to buyers, the house said. “This trend is likely to persist” throughout this year given a strong line-up of new launches, Kenanga said. Data out on Wednesday show that Malaysia’s total industry volume, or new vehicle sales, rose 9% year-on-year and 18% month-on-month to 68,665 units in May 2024. Sales in January-May totalled 328,901 units, an 8% growth when compared to the same period in 2023. Total industry volume will likely fall this year to 740,000 units from the record-high 799,731 units in 2023, according to forecasts of the Malaysian Automotive Association, which represents more than a dozen domestic and foreign brands, assemblers, distributors and retailers. Under the rationalisation announced earlier this month, diesel prices in Peninsular Malaysia will be floated and adjusted weekly, with the price per litre raised to RM3.35 at all retail stations from RM2.15 previously. The subsidy rationalisation for RON95, the most widely-used petrol variant currently capped at RM2.05 per litre, is expected to follow suit. The government has also announced a slew of incentives to spur purchase of electric vehicles. Vehicle sales will also be supported by new battery-powered electric vehicles that enjoy sales tax exemption and other incentives up until next year for imported units and 2027 for locally-assembled cars, Kenanga said. Sales of electric vehicles have jumped from 274 units in 2021 to over 3,400 units in 2022 and 10,159 units in 2023. New registrations totalled 2,703 units for the January-April period, and appear on track to meet the national target for electric and hybrid vehicles of 15% of total industry volume by 2030, Kenanga noted. The government’s pledge to enable charge point operators to secure faster approvals for installation also “provides comfort”, as currently only 3,951 charging stations have been built to-date, the research house added. MBM Resources Bhd (KL:MBMR) is Kenanga’s top sector pick, citing its strong earnings visibility, proxy to mass-market Perodua brand and attractive dividend yield of about 7%. Shares of MBM Resources were up 2.7% to RM5.37 at noon. Read also: TM’s Johor data centre venture to offer new growth driver; analysts stay bullish Malaysia’s mid-range auto slowdown may create two-speed market, Kenanga says KUALA LUMPUR (June 19): The government has to date approved 100,000 applications for cash subsidies on diesel under the Budi Madani initiative, benefiting individual diesel vehicle owners (Budi Individu) and small-scale farmers and smallholders (Budi Agri-Komoditi). Finance Minister II Datuk Seri Amir Hamzah Azizan said the objective of targeting diesel subsidies is to provide focused assistance to eligible sectors and disadvantaged segments of the population. “The monthly cash aid of RM200 is aimed at covering additional diesel expenses for over 80% of individual diesel vehicle owners,” he said. “I urge eligible Malaysians to promptly register for the June diesel cash aid payment. The government is committed to disbursing Budi Madani cash aid starting from the month the application is submitted,” he said in a statement on Wednesday. Amir Hamzah said 30,000 applicants received their cash aid on June 10, with another 46,000 receiving theirs on Wednesday. Applicants submitting by the end of June will receive payments in early July. “Eligible recipients will receive RM200 monthly through their bank accounts or in cash at Bank Simpanan Nasional counters,” he said. The Budi Madani initiative, launched since May 28, serves as a platform to distribute diesel subsidy cash aid to individual diesel vehicle owners under Budi Individu and small-scale farmers and smallholders under the Budi Agri-Komoditi category. About 300,000 individual diesel vehicle owners in Peninsular Malaysia are estimated to qualify for Budi Individu, while nearly 400,000 small-scale farmers and smallholders are eligible for Budi Agri-Komoditi. Amir Hamzah: 100,000 Budi Madani diesel subsidy applications approved Individuals whose applications were unsuccessful can check their status and file appeals on the Budi Madani website at https://budimadani.gov.my. Small-scale farmers and smallholders who are not yet registered with relevant agencies under the relevant ministries are advised to do so before applying for Budi Madani (if not already applied) or submitting their appeals on the Budi Madani website. For more details on Budi Madani eligibility criteria, visit https://budimadani.gov. my or contact the Budi Madani helpline at 1-800-88-2747/03-8882 4565/03-8882 4566, or email [email protected]. Additional information can also be obtained at all Inland Revenue Board offices throughout Peninsular Malaysia. Read also: Domestic trade ministry plans to install CCTV at border petrol stations in Kelantan Refuse lorry owners urge govt to include Rigid Roll-On Roll-Off lorries in diesel subsidy scheme Bernama BY ISHRA KAMISO theedgemalaysia.com

THURSDAY JUNE 20, 2024 5 THEEDGE CEO MORNING BRIEF HOME Top Glove returns to black in 3Q on land sale, forex gain Top Glove expects lower costs, US demand shift from China BY EMIR ZAINUL theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com KUALA LUMPUR (June 19): Top Glove Corp Bhd (KL: TOPGLOV) said it expects the price of its raw materials to soften for the rest of the year, leading to a further improvement in its profit margin. The group also expects to see an increase in glove demand in the coming quarters as the US may switch from China to Malaysia for its imports. Specifically, it expects the natural rubber latex (NR latex) price to come down 6% in June, and nitrile butadiene rubber (NBR) price to be on a moderate downtrend from June to September. Besides that, natural gas tariff is expected to decline by 3% in July. Although raw material costs escalated in its third financial quarter ended May 31, 2024 (3QFY2024), Top Glove managing director Lim Cheong Guan said the group has managed to improve its profitability margin, mainly due to its ability to command selling price, utilising its cost pass-through mechanism. Top Glove’s margin improved from -7% for FY2023 to 11% for the first nine months of FY2024. “The NR latex price has gone up exceptionally higher due to the extreme weather impact, with the current price almost 50% higher than the pre-pandemic level price,” Lim told a virtual press conference on Wednesday. “However, both the NR latex and NBR price is expected to soften in the second half of 2024,” he added. According to Top Glove, raw material prices for 3QFY2024 were on an uptrend quarter-on-quarter, with the average NR latex concentrate price up by 20% to RM6.77/kg, and the average NBR price up 16% to 89 US cents per kg (RM4.19/kg). Raw materials accounted for 41% of Top Glove’s production cost structure in 3QFY2024. Lim said that the group has also reopened temporarily closed factories and one new factory is to commence operations, increasing running capacity by an additional three billion pieces. “The high utilisation rate will improve the production cost efficiency and improve our margin going forward,” he said. Stronger glove demand ahead Lim said Top Glove expects to see stronger glove demand in the coming quarters as demand for gloves from the US may shift from China to Malaysia. This is based on the fact that there are higher cases of Chinese glove manufacturers being added into the US Food and Drug Administration (FDA) import alert list. “As of today, 13 out of 14 cases since January 2024 were glove manufacturers from China,” Lim said. “Even though the tariff by the US on medical gloves from China will only commence in 2026, we believe the US customers will start outsourcing to Malaysian glove manufacturers before the tariff comes into force,” he added. Lim was referring to the announcement by US President Joe Biden last month that the government is raising the tariffs on Chinese rubber medical and surgical gloves from 7.5% to 25%, effective in 2026. The move has been widely seen to be beneficial for Malaysian glove makers. As demand for Malaysian gloves pick up, Lim said Top Glove will be in an even better position to command on the selling price of its gloves, further improving its margin. “We have emerged from the storm, better perhaps, but not broken. We expect even brighter days ahead and [we will be] able to deliver better performance in the coming quarters,” he added. KUALA LUMPUR (June 19): Top Glove Corp Bhd (KL: TOPGLOV) has returned to the black after seven consecutive quarters of losses thanks mostly to land sale and currency gain. Net profit for the third financial quarter ended May 31, 2024 (3QFY2024) totalled RM50.67 million against a net loss of RM130.59 million in the previous year’s corresponding quarter, its exchange filing on Wednesday showed. The company booked RM54.34 million from disposal property, plant and equipment, as well as RM22.33 million from unrealized foreign exchange gain. Quarterly revenue rose 20% to RM636.88 million from RM530.62 million previously, as the growing glove demand enabled the group to share out some of the cost increases with customers through upward revisions in average selling prices (ASPs). “We are pleased to have seen a return to black this quarter as the glove industry turns a corner. This is largely attributed to improving glove demand as customers’ orders resume, alongside intensive efforts to level up our quality and cost efficiency, as well as gains from the sale of excess land,” Top Glove managing director Lim Cheong Guan said in a separate statement. Supported by improvements in its performance from quarter to quarter, Top Glove remains optimistic about industry prospects. Looking ahead, Top Glove anticipates amplified business opportunities in the US market following the impending imposition of steeply increased tariffs by the US government on medical gloves from China. “Customers from the US are expected to start moving away from outsourcing orders to China ahead of year 2026 when tariffs take effect, and Top Glove as a major glove exporter to the US is optimally positioned to capture more market share from the potential trade diversion,” the glovemaker said. For the first nine months of financial year 2024 (9MFY2024), Top Glove was still in the red with a net loss of RM58.24 million, albeit an improvement of 87.4% compared with a net loss of RM463.49 million recorded in the previous year’s corresponding period. However, revenue slipped 5.6% to RM1.68 billion from RM1.78 billion previously. The world’s largest glovemaker by volume did not declare any dividend for the quarter. Top Glove managing director Lim Cheong Guan said the company will be in an even better position to command on the selling price of its gloves, further improving its margin as demand for Malaysian gloves pick up.

thursday june 20, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (June 19): Perak Corp Bhd (KL:PRKCORP), which is 52.9% owned by the Perak State Development Corp, has dismissed allegations that it is losing significant land parcels due to unpaid rent, saying they are “categorically false”. In a bourse filing, the Practice Note 17 (PN17) company stated that when the land confiscation occurred, Perak Corp had already derecognised the assets and liabilities of its wholly owned subsidiary PCB Development Sdn Bhd and PCB Development’s 51%-owned subsidiary Animation Theme Park Sdn Bhd from the consolidated statement of financial position as of Dec 20, 2021. The derecognition, it explained, occurred because PCB Development underwent creditors’ voluntary winding up, during which liquidators assumed control of its business undertakings. As such, the land confiscation has no impact on Perak Corp’s financial standing, Perak Corp affirmed. Perak Corp was responding to a report by The Edge Malaysia weekly published for the week of June 17-23, which stated that the Perak state government had initiated actions in October 2022 to take over six parcels of land owned by PCB Development, due to unpaid quit rent amounting to RM337,177.48. Documents from the Pejabat Tanah and Galian Negeri Perak, cited by The Edge, also revealed that a Notice 8A for land confiscation was gazetted for these parcels in October 2022, according to the report. “The article [also] implies that minority shareholders of Perak Corp were adversely affected. However, the derecognition of PCB Development effectively shielded Perak Corp from any financial repercussions, safeguarding the interests of all shareholders of Perak Corp given PCB Development’s liabilities far exceeded its assets and is in an insolvency position,” it said. “The narrative that PCB Development’s scheme of arrangement was rejected is factually incorrect,” it said, adding both Perak Corp’s and PCB Development’s schemes were duly approved by their respective scheme creditors during the adjourned meetings held on April 19, 2021 and sanctioned by the High Court on May 7, 2021. “This approval has been announced to Bursa Malaysia Securities on May 11, 2022, disclosed in our quarterly reporting, audited statutory financial statements in Perak Corp refutes claims of land losses due to unpaid rent KUALA LUMPUR (June 19): Seremban-based property developer Matrix Concepts Holdings Bhd (KL:MATRIX) has inked a second joint venture (JV) with NS Corp to develop new prime land in Malaysia Vision Valley 2.0 (MVV2.0) into a sustainable township in a deal worth RM435.6 million. In a statement, Matrix Concepts said it had entered into a land development agreement with NS Corp for 1,000 acres (404.69 hectares) of prime land in the MVV2.0 development corridor. Megah Sedaya Sdn Bhd (MSSB), an 85:15 joint venture between Matrix Concepts and NS Corp, is the master developer of the new land. Concurrently, on the same day, NS Corp entered into a sales and purchase agreement (SPA) with Sime Darby Bhd (KL:SIME) to acquire the land. MSSB shall pay for the development rights by way of the settlement of the purchase price amounting to RM435.6 million under the SPA, and NS Corp shall hold the MVV2 land on trust with MSSB Matrix Concepts seals second JV with NS Corp to develop MVV2.0 land in RM436 mil deal by Syafiqah Salim theedgemalaysia.com by Syafiqah Salim theedgemalaysia.com the annual report, and reiterated in various voluntary clarifications. Despite extensive and repeated disclosures on this matter, it appears that the information has continued to be overlooked,” Perak Corp stressed. Further, the company highlighted that Mohamed Shafeii Abdul Gaffoor was the chief executive officer of Perak Corp from August 2018 to June 2020, when the company had been declared insolvent, resulting in its fall into a PN17 position on Feb 11, 2020. “Paradoxically, he later sought to set aside the sanctioned scheme of arrangement of Perak Corp and PCB Development, which aimed to restructure the outstanding financial obligations of these companies,” said the company. “However, on Nov 7, 2023, the High Court of Ipoh ruled that the allegations in support of the originating summons filed by Mohamed Shafeii were not supported by any contemporaneous evidence. Consequently, the court deemed Mohamed Shafeii’s action through the originating summons as frivolous, scandalous, vexatious, and amounted to an abuse of the court’s process. “This ruling reaffirms that these claims were unfounded, intended to mislead, and create unwarranted suspicion,” the company added. Shares of Perak Corp closed down one sen or 0.78% at 35 sen on Wednesday, giving the company a market capitalisation of RM35 million. being the master developer of the project. Matrix Concepts said the project will be funded through a combination of internally generated funds and borrowings. This is the second JV agreement entered between the two parties. In August 2022, Matrix Concepts partnered NS Corp for the development of 1,382 acres of adjacent land in MVV2.0 from NS Corp, which had acquired the parcel from Sime Darby for RM460 million. At that time, Matrix Concepts formed an 85:15 JV company with NS Corp called N9 Matrix Development Sdn Bhd to develop the said land for township development. Overall, Matrix Concepts has secured 2,382 acres of land in the MVV2.0 area, with a combined gross development value of RM12 billion. The development will feature a balanced mix of residential and commercial elements over a 12-year period. Read the full story www.mchb.com.my

thursday June 20, 2024 7 The E dge C E O m o rning brief sustainable construction tomorrow: milestones & opportunities 1. Oceanix Busan: An Answer to Rising Sea Levels Dr. Yang Sung-Min, Associate Principal / Urban Designer, SAMOO Architects & Engineers, South Korea by invitation only For enquiries, email [email protected] 4. PANEL DISCUSSION Sustainability: Now and Beyond Progressing Together Clarisse Loh, Head of Sustainability, YTL Cement Building Merdeka 118: A Paradigm Shift YM Tengku Dato’ Ab. Aziz Tengku Mahmud, Chief Executive Officer, PNB Merdeka Ventures 2. Reality vs Fallacies Datuk N K Tong, President, Real Estate & Housing Developers’ Association (REHDA) Malaysia 3. Journey Towards Sustainable Constructions Dato’ Sr Mohd Zaid Zakaria, Chief Executive, Construction Industry Development Board (CIDB) Malaysia Sustainable Designs: What’s Next? Ar Seah Chee Huang, Chief Executive Officer, DP Architects, Singapore Moderator: Au Foong Yee, Editor Emeritus, The Edge Media Group ExCLUSIvE STUDy TOURTO MERDEkA 118 (Limited to 50pax) 2.30pm - 4.30pm Exemplary Project for Sustainable Constructions YM Tengku Dato’ Ab. Aziz Tengku Mahmud, Chief Executive Officer, PNB Merdeka Ventures organised by knowledge partner real estate matters 31 July 2024 8.00am - 2.00pm JW marriott Hotel Kuala lumpur Delve into the latest advancements, trends and innovations shaping the future of sustainable and responsible construction. The symposium provides a platform to identify industry challenges and opportunities. SuStainable ConStruCtion: tHe next level

thursday june 20, 2024 8 The E dge C E O m o rning brief home After over a decade, LBS Bina exits investment in Zhuhai motor racing circuit for RM124.74 mil cash L&P eyes acquisitions in quest for earnings, revenue growth by Hee En Qi theedgemalaysia.com by Justin Lim theedgemalaysia.com KUALA LUMPUR (June 19): L&P Global Bhd (KL:L&PBHD) said on Wednesday it is eyeing acquisitions to support organic growth as the industrial packaging firm seeks to nearly double its revenue within the next three to five years. To achieve its growth target, the company is also looking at potential acquisitions, chief executive officer Ooi Lay Pheng told The Edge. L&P is currently in talks to acquire a domestic company, she noted. “We are looking into eco-friendly packaging materials that can be applied not just for the packaging industry but also for other sectors such as construction and furniture,” she said. “We cannot depend on organic growth, so we are looking at M&A for cross-sector growth.” L&P, which mainly serves the renewable energy, semiconductor, and electrical and electronics (E&E) industries, was recently transferred to the Main Market in less than two years after its debut on the ACE Market. In the latest quarter ended March 31, 2024 (1QFY2024), net profit rose 6.3% to RM4.32 million from RM4.07 million in 1QFY2023, thanks to improved margins as a result of lower timber prices, coupled with stronger greenback and higher sales of boxes and crates. million in revenue within three to five years on the back of an anticipated technology upcycle, Ooi said at an earnings briefing on Wednesday. “L&P is well-positioned with adequate raw materials and skilled labour to capitalise on the projected recovery of the semiconductor industry by the end of this year,” she said. In 1QFY2024, the company derived 75% of its revenue from the solar energy sector while 16% of the revenue was contributed by the E&E sector. Utilisation rate of its assembly line catering to the renewable energy industry hit 97% for the quarter. Meanwhile, the utilisation rate of its general assembly line — which caters to the semiconductor and E&E industries — was only 23% during the same period. Ooi flagged that geopolitical risks, particularly those surrounding the trade war between the US and China, remain the biggest challenge for the company. “A good thing is that the China Plus One strategy has brought in a new pool of customers for us,” she said. “Packaging is bread and butter,” she continued, “so eventually, they will have to look for us.” Some customers, however, were affected by the tariffs, resulting in a reduction in orders to L&P, “while some had to move out to find another suitable place,” she added. KUALA LUMPUR (June 18): LBS Bina Group Bhd has exited its investment in Chinese motor circuit company Zhuhai International Circuit Ltd (ZICL) after more than a decade, as it sold its stake in Lamdeal Investments Ltd (LIL), which owns a 60% stake in ZICL, for 192.18 million yuan (RM124.74 million) cash. ZICL was formed in 1992 to jointly develop and operate China’s first professional racing track on land measuring some 246.53 acres in Zhuhai City, which is located in the southern part of Guangdong, bordering Macau. For the development, ZICL was granted the right to use the land till 2043. LBS Bina acquired LIL in 2002 as part of a restructuring of Instangreen Corp Sdn Bhd (formerly Instangreen Corp Bhd) approved under the Pengurusan Danaharta Nasional Bhd Act 1998. ZICL was at the time poorly managed and loss-making, so LBS Bina devised a safety plan to sell LIL to a third party with an option to repurchase it back at US$1. LBS Bina exercised this option in 2013, saying it foresaw huge potential in the circuit land as it provided an opportunity for the group to venture into property development. In a bourse filing on Wednesday, LBS Bina said its unit Dragon Hill Corp Ltd had inked an equity transfer and debt repayment agreement with Huafa Urban Operation (HK) Ltd for the proposed disposal. Huafa Revenue, however, declined by 4% yearon-year to RM36.42 million from RM37.93 million amid lower demand for palettes from customers in the renewable energy industry amid overcapacity in China’s solar industry. The company is targeting to hit RM250 L&P Global Bhd CEO Ooi Lay Pheng (right): We cannot depend on organic growth, so we are looking at M&A for cross-sector growth. Sam Fong/The Edge Urban Operation is principally involved in investment holding, asset management, and business management consulting. Besides the cash payment, Huafa will also pay off debts totalling 227.82 million yuan (RM147.88 million) owed by LIL and its subsidiaries to LBS Bina and its subsidiaries. LBS Bina said the proposed disposal would result in a pro-forma disposal gain of about RM80 million, improve its net asset by about 10%, and reduce its gearing from 0.42 times to 0.38 times. As at March 31, 2024, LBS Bina had total borrowings of RM909.51 million, of which RM482.99 million are short term borrowings. LBS Bina said the proposed disposal provides an opportunity to monetise the investment, as ZICL’s right to use the Zhuhai City land will expire in 19 years. The disposal is also because LIL has constantly incurred losses over the years due to land amortisation and the increasing challenges the racing circuit faces in meeting stringent sustainability requirements, it added. The disposal is slated to be completed by end-October 2024. LBS Bina shares were suspended on Wednesday to make way for the announcement. The stock will resume trading on Thursday. LBS Bina made a net profit of RM30.53 million for the first quarter ended March 31, 2024 (1QFY2024), little changed from the RM30.5 million it made in 1QFY2023, even as revenue dipped 11.11% to RM342.1 million from RM384.86 million, thanks to cost management and optimisation. LBS Bina’s largest shareholder is executive chairman Tan Sri Lim Hock San, who holds 39.25% in the company, of which 36.66% is held indirectly. The stock’s last closing price on Tuesday was 89 sen, giving the group a market capitalisation of RM1.4 billion. Year-to-date, the stock has risen 55%.

thursday june 20, 2024 9 The E dge C E O m o rning brief home KUALA LUMPUR (June 19): TA Securities Holdings Bhd has assigned a fair value of 55 sen to Go Hub Capital, which is set to list on the ACE Market on July 3. This valuation represents a 57.1% increase from its initial public offering (IPO) price of 35 sen. In a note, TA Securities expressed optimism about Go Hub’s growth prospects, citing the government’s ongoing efforts to advance digitalisation, which are expected to enhance Malaysia’s public transportation infrastructure and systems. The research firm highlighted that Malaysia’s enterprise information technology (IT) services industry is projected to grow from RM23.5 billion in 2024 to RM29.5 billion in 2028, with a compound annual growth rate of 5.7%, driven primarily by digital transformation across various sectors. “We estimate Go Hub will achieve earnTA Securities sets 55 sen fair value for Go Hub Capital KUALA LUMPUR (June 19): Sabah-based integrated property developer KTI Landmark Bhd (KL:KTI) made a lacklustre debut on Bursa Malaysia on Wednesday, becoming the third company so far this year to close below the initial public offering (IPO) price on the first trading day. KTI closed the day at 28.5 sen, down 5% or 1.5 sen from its IPO price of 30 sen. After opening flat at 30 sen, the ACE Market stock failed to move higher for the rest of the day while its intraday low was 28 sen. It was among the top 20 active counters on the exchange, with 35.01 million shares traded. At the closing price of 28.5 sen, KTI’s market capitalisation stands at RM228 million on an enlarged share capital of 800 million shares. The company had expected to have a market capitalisation of RM240 million upon listing, which would have valued it at 17.4 times its price-earnings multiple — based on its earnings per share of 1.7 sen for the financial year ended Dec 31, 2023. Of the 19 IPOs so far this year on Bursa Malaysia, only three had fallen on their maiden day of trading. Besides KTI, the others are ACE Market-listed Master Tec Group Bhd (KL:MTEC), which closed 7.69% below its IPO price of 39 sen; and Main Market-listed MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP), which finished 0.81% below its IPO price of 62 sen. A research house, Mercury Securities Sdn Bhd, had urged investors to participate in KTI’s IPO, saying the company would offer an attractive investment prospect with growth opportunities in Sabah’s property market, driven by its unique partnership with the Housing and Urban Development Board and a strong project pipeline, which includes a mix of premium property and affordable housing developments. Commenting on the company’s flat debut at a press conference following the listing ceremony, KTI executive director Wilson Loke said the price was acceptable considering the challenging property sector. “We look at the long run. Even though the opening is not fully green, we are okay. The property sector is a more challenging sector among all the other sectors, and we have remained resilient for the past two to five years,” Loke said. “I would say that a property counter, to me, is all about whether the company is trustworthy or not. I think trust is a very notable thing in our industry, especially in property and also in Sabah,” he said. “We just hope to have the chance to build the trust with the investors moving forward.” To date, KTI has delivered projects with a total gross development value (GDV) of RM1.2 billion, of which RM1 billion has come from the provision of designand-build construction projects, with the remaining RM207.6 million from its own property development projects. The company’s notable projects include Taman Wawasan in Beaufort, Taman La Gloxinia in Papar, Taman Seri Lemawang in Tuaran, as well as Taman Nelly, Taman Lavender and The Logg in Kota Kinabalu. KTI Landmark closes 5% below IPO price on ACE Market debut by Anis Hazim theedgemalaysia.com B e r n a m a ings growth of 19.3%, 33.3%, and 21.7%, reaching RM9.7 million, RM12.9 million, and RM15.7 million for the financial years 2024 (FY24), FY25 and FY26, respectively, supported by its unbilled order book of RM35.4 million as of May 10, 2024. “A better outlook for the public transportation sector is also expected, with the domestic market remaining the primary revenue generator,” TA Securities said. Go Hub specialises in providing enterprise IT services, particularly transportation solutions. These include customised software development and the integration of hardware and software systems for the bus and rail segments. KTI’s sale of new shares raised RM48 million, of which RM20.7 million or 43.1% has been earmarked for general working capital. The company also plans to use RM18 million (37.5%) of the proceeds to acquire land for development, with the balance to repay bank borrowings and defray listing expenses. The offer-for-sale, meanwhile, raised RM13.5 million, which will accrue entirely to selling shareholders — managing director Loke Theen Fatt and his wife Chin Mee Lee, who will retire and relinquish all of her directorships and involvement in KTI once the listing is completed. KTI Landmark Bhd 0 2 4 6 8 10 9am 5pm June 19, 2024 27 28 29 30 31 Vol (mil) Sen *28.5 sen *As at market close on first day of listing (June 19, 2024) Source: Bloomberg 30 sen IPO share price: 30 sen KTI Landmark managing director and CEO Dr Gordon Loke (fifth from left) and substantial shareholder Chin Mee Leen (sixth from right) during the company's debut on the ACE Market. Shahrin Yahya/The Edge Read also: KTI Landmark to launch two residential projects in Sabah with GDV of RM600 mil by 2028

thursday june 20, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (June 19): Eco World International Bhd (KL:EWINT) has widened its net loss to RM14.13 million for the second quarter ended April 30, 2024 (2QFY2024) compared to RM4.56 million in the same period a year earlier. The wider net loss was primarily due to a lower gross profit, as most of the stock in its Australian projects has been sold. Additionally, there was an impairment loss of RM10.77 million on the amount owed by its joint venture company, EcoWorld London as well as lower foreign exchange gains as the British pound appreciated against the Malaysian ringgit. Quarterly revenue dropped 99.33% to RM151,000 from RM22.7 million as there were no units sold and handed over to customers of projects in Australia following the sell-out of all residential units, leaving just two commercial units unsold. Nonetheless, the group declared a first interim single tier dividend of six sen per share, which translates to RM144 million, to be paid on July 24. For the cumulative six months ended April 30, the group trimmed its net loss to RM13.95 million from RM35.38 million amid lower finance cost, higher forex gains and lower losses from Eco World London. Revenue for the six months fell by 29.39% to RM31.82 million, compared to RM45.07 million, as all residential units in West Village and Yarra One were sold during the period. In a statement, EWINT’s president and chief executive officer Datuk Teow Leong Seng said that construction costs in the UK have continued to climb despite softening home prices in the recent months. “Given the uncertainties related to policy direction as the UK heads to a general election in July 2024 and market expectations of rate cuts in the later part of 2024, homebuyers will take longer time to transact as they wait for policy clarity and lower mortgage rates. As such, the current environment remains unconducive for the group to undertake launches in the near term,” he said. Teow stated that the group is closely monitoring market conditions and exploring strategies to enhance the profitability of its ongoing projects. “The group will proceed with launches when cost pressures stabilise and the expected returns of undertaking such launches can be forecast with greater certainty”. As of the end of May, the group recorded RM433 million in sales exchanges and EWI reports 2Q loss, declares six sen dividend KUALA LUMPUR (June 19): Electronic manufacturing services (EMS) provider VS Industry Bhd (KL:VS) said its third quarter net profit surged 103% from the year before, mainly due to higher orders as well as a favourable product sales mix in Malaysia. Net profit for the three months ended April 30, 2024 (3QFY2024) rose to RM54.42 million from RM26.77 million a year earlier, while revenue rose slightly to RM1.01 billion from RM996.78 million. Earnings per share rose to 1.43 sen from 0.70 sen, its bourse filing showed. The group declared a third interim dividend of 0.4 sen per share, to be paid on July 26, taking its nine-month dividend payment to one sen per share, down from 1.2 sen per share in the previous year’s corresponding period. In a statement, VS Industry’s managing director Datuk SY Gan said the group has experienced a healthy pickup in sales orders from key customers following improved consumer sentiments and normalisation of its customers’ inventory levels. “In addition, launches of several new product models by certain customers serve to sustain market interests as well. Overall, we anticipate this progressive uptrend to prevail in the near foreseeable future,” he said. VS Industry’s 3Q profit more than doubles on higher orders, favourable product mix by Syafiqah Salim theedgemalaysia.com by Syafiqah Salim theedgemalaysia.com “On another positive note, with the recent successful development of several new processes in-house, we have strengthened our vertical integration capability. Mass production for our key customers has already started for some of these processes,” he said. At the same time, Gan said the group continues to have active engagements with its key customers in Malaysia, Indonesia, Singapore, and China, to explore further opportunities that are value-accretive to both parties. “Aside from that, the ongoing discussions with prospective customers remain in progress and we look forward to expanding our clientele by the calendar year. The board opines that the financial performance of the group for the remaining quarter will continue reflecting improving performance,” he added. For the nine months ended April 30, VS Industry’s net profit increased 1.33% to RM119.41 million from RM117.84 million a year prior, though revenue fell 11.04% to RM3.06 billion from RM3.44 billion. Shares of VS Industry closed one sen or 0.86% lower at RM1.15 on Wednesday, giving it a market capitalisation of RM4.5 billion. Year-to-date, the counter has gained over 36%. More on corporate earnings: Scientex Packaging’s 3Q profit slips on higher tax expenses, declares 2.5 sen dividend Yinson’s net profit dips in 1Q amid lower revenue, increased finance costs reserves of RM85 million, bringing the total to RM518 million. Embassy Gardens led contributions with RM166 million in sales, followed by Wardian with RM153 million, and Millbrook Park with RM41 million. “As at May 31, sales are on track and we have reduced the value of unsold completed stocks to about RM400 million of which the group’s effective share is approximately RM300 million. The board is maintaining our target of generating excess cash of up to RM500 million by selling our completed stocks. “Such excess cash will be distributed to shareholders in tranches over 2024 and 2025, with the first tranche amounting to RM144 million to be paid in July 2024, following the declaration of the six sen first interim dividend to shareholders by the board in 2QFY2024,” Teow added. At Wednesday’s closing bell, shares of EWINT were unchanged at 40 sen, giving it a market value of RM948.29 million. www.vs-i.com

thursday june 20, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (June 19): Binastra Corp Bhd (KL:BNASTRA) said on Wednesday that it had secured a RM313.7 million contract to construct a residential apartment complex in Kota Kinabalu, Sabah. In a bourse filing, the construction firm said that its wholly owned subsidiary Binastra Builders Sdn Bhd had accepted a letter of award from FYT Land (KK) Sdn Bhd for the construction job. The job scope includes external works outside the site boundary, piling works, and main building works for a residential apartment complex comprising two blocks — one with 373 units across 34 storeys and the other with 389 units across 30 storeys, as well as a seven-storey car park podium. The project will commence on June 19, and is expected to be completed by July 31, 2027. Binastra added that the contract is expected to provide an additional income stream for the group over the next three financial years. This is the second construction job Binastra has secured in a month. On June 7, the group announced that it had secured a RM315 million contract from Pembinaan Serta Hebat Sdn Bhd to build two blocks of residential apartments in Bandar Tasik Selatan, Kuala Lumpur. The contract is deemed a related party transaction, as Binastra managing director and major shareholder Datuk Tan Kak Seng has a substantial indirect interest in Pembinaan Serta Hebat. Therefore, it is subject to Binastra obtaining shareholdBinastra secures RM314 mil construction job in Kota Kinabalu by Choy Nyen Yiau theedgemalaysia.com news In brie f ers’ approval in the annual general meeting on July 3. Binastra, formerly known as Comintel Corp Bhd, exited Practice Note 17 status in September last year and underwent rebranding under Tan, who became a shareholder in December 2022 and was previously involved in construction projects. Tan, who is also a substantial shareholder of property developer Maxim Global Bhd (KL:MAXIM), has been Binastra’s managing director since January 2023. For the financial year ended Jan 31, 2024 (FY2024), Binastra’s net profit more than doubled to a record RM40.77 million from RM16.52 million for the previous year, mainly due to increased work activities in the construction segment. Revenue also more than doubled to RM425.2 million from RM184.85 million for FY2023. As of Jan 31 this year, Binastra had 15 ongoing construction projects, with an outstanding order book of RM1.4 billion. Shares in Binastra settled five sen or 3.76% lower at RM1.28 on Wednesday, valuing the company at RM1.39 billion. OCK Group deputy chairman, ED resign amid internal board restructuring KUALA LUMPUR (June 19): OCK Group Bhd (KL:OCK) announced on Wednesday that its deputy chairman Abdul Halim Abdul Hamid and executive director Chang Tan Chin have resigned, with immediate effect, as part of the board’s internal restructuring efforts. Abdul Halim and Chang have been serving on OCK’s board since their appointments in October 2011. Neither of them holds any shares in the telecommunications tower company, according to OCK’s filing. OCK’s largest shareholder is managing director Datuk Wira Ooi Chin Koon, who holds a 0.04% direct stake and a 34.93% indirect stake through Aliran Armada Sdn Bhd. Last month, OCK signed a 15-year tower leasing agreement with Best Telecom Co Ltd, marking its entry into Laos. Best Telecom plans to launch its 5G network there by the end of the year. In October 2022, OCK and the Laos Ministry of Finance (MOF) signed a shareholder agreement to establish a joint venture, OCK Laos TowerCo Co Ltd. OCK holds a 70% majority stake in the venture, while the ministry holds the remaining 30%. Following the agreement, OCK Laos TowerCo was expected to apply for a tower licence in Laos. Shares of OCK closed up half a sen or 0.84% at 60 sen on Wednesday, translating into a market capitalisation of RM636.98 million. — by Syafiqah Salim KLK ends contract with Nepalese worker recruitment agency amid allegations of unethical practices KUALA LUMPUR (June 18): Kuala Lumpur Kepong Bhd (KL:KLK) said on Wednesday that its rubber glove subsidiary is no longer in any contractual relationship with its agent for workers from Nepal, Agensi Pekerjaaan UKHWAH Sdn Bhd, with immediate effect. By extension, any affilation with Nepal-based recruitment agency SOS Manpower Service (SOS) also ceases, the plantation group said in a statement. KLK said the statement served as a final update on the recent independent third-party assessment conducted on allegations of unethical recruitment practices against SOS and its sub-agents in Nepal. Last month, KLK said it was investigating the allegations of unethical recruitment practices made against the sub-agents of SOS, its appointed agent to recruit Nepalese workers for its rubber glove subsidiary, KL-Kepong Rubber Products. The allegations, according to KLK, were made by Sajha Sabal Media, a news portal in Nepal. KLK said the independent third-party assessment made recommendations to improve due diligence, standard operating procedures and grievance management. The group and KL-Kepong Rubber Products are fully committed to implementing the recommendations, said KLK. — by Justin Lim klk.com.my Kuala Lumpur Kepong Bhd said its rubber glove subsidiary has ended contractual relationship with its agent for workers from Nepal, Agensi Pekerjaaan UKHWAH Sdn Bhd.

thursday june 20, 2024 12 The E dge C E O m o rning brief home PUTRAJAYA (June 19): The Court of Appeal on Wednesday partly allowed 1Malaysia Development Bhd’s (1MDB) former president Arul Kanda Kandasamy to amend his statement of defence to include his counterclaim to seek outstanding salary and bonuses from the company, in a suit filed by 1MDB against him and former Treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah. Judge Datuk Azizah Nawawi, who led the bench, allowed the appeal by Arul Kanda to amend his statement of defence to include the counterclaim. Azizah said the bench was unanimous in making the decision, and that there are merits in Arul Kanda’s appeal for this matter to be included in his defence and counterclaim. She made no order as to costs. Azizah sat with appellate court judges Datuk Lim Chong Fong and Datuk Dr Choo Kah Sing. 1MDB was represented by Brendan Navin Siva and Aida Haryani Salamon, while Sanjay Mohan along with Adam Lee and Hing Hong Jer appeared for Arul Kanda. Arul Kanda allowed to include counterclaim for outstanding salary, bonuses from 1MDB KUALA LUMPUR (June 19): Former prime minister Datuk Seri Najib Razak’s fourth criminal trial has been postponed again, following the previous postponement on June 4. The trial where Najib is accused along with former Treasury secretary general Tan Sri Dr Mohd Irwan Serigar Abdullah on six counts of criminal breach of trust (CBT) — over more than RM6.6 billion of government funds to International Petroleum Investment Company (IPIC) — was supposed to start on Wednesday after several postponements. At what was supposed to be the beginning of the trial on Wednesday morning, before High Court judge Datuk Muhammad Jamil Hussin, Irwan’s lead defence counsel Datuk K Kumaraendran said that there were hundreds of documents, which the prosecution had not provided to the defence team, and out of those, some had yet to be declassified. These documents, he said, are pivotal for the accused to come up with a defence and inform the prosecution of the defence’s stance. Among the documents were memos from the Ministry of Finance to Minister of Finance Inc, Cabinet meeting memos, and letters and emails referred to in the witness statements. In this trial, Najib is represented by senior lawyer Tan Sri Muhammad Shafee Abdullah, who has represented Najib in his other criminal trials, including the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) case, which saw the prosecution wrap up its case in May after six years. In this case, the prosecution said that they will call 48 witnesses during the prosecution stage. ‘No more adjournment’ After spending about half an hour to organise dates between the parties, they settled on July 22 for the case to begin. The dates set so far are July 22-25 and 29-31. Shafee then told the judge that they can add more dates when the trial begins on July 22. Shafee explained that his dates are tight, as he has numerous trials in the coming months, most of them involving Najib as his client. After setting the dates, Jamil asked the parties to hand over all documents, and warned against more delays. “I ask the prosecution to pass all documents to the defence before the trial begins, and I hope no more documents need to be given. The excuse that more documents Judge defers start of Najib’s IPIC trial; defence lawyer says yet to receive all documents by Timothy Achariam theedgemalaysia.com by Hafiz Yatim theedgemalaysia.com Read also: Wan Saiful’s corruption, money laundering trial postponed to June 24 Read the full story need to be given or have not been given, I don’t want to hear it anymore,” he said. “How many times have we postponed? Today (Wednesday) also we can’t go on, because of documents that haven’t been given by the prosecution. I don’t want the trial not to start because of documents. It will start on July 22 at 9am,” the judge said. This case has been postponed for approximately six years to make way for Najib’s other criminal trials, such as the SRC International Sdn Bhd trial and the 1MDB-Tanore trial. 1MDB borrowed US$1.2 billion from IPIC in 2015. The sum was repaid by 1MDB under a settlement agreement inked in 2017. 1MDB said at that time that it raised the funds for repayment via asset sales, but did not give details. The subject of the diversion is the subject of the six CBT charges, as the RM6.6 billion government funds were initially allocated for, among others, Bantuan Rakyat 1Malaysia, the East Coast Rail Link project, and funds for the Kuala Lumpur International Airport. There was also a sale of some Bank Negara Malaysia land to repay IPIC. In February 2023, IPIC and its subsidiary Aabar Investments PJS agreed to pay the Malaysian government US$1.8 billion (RM8.26 billion). The settlement was in respect of the legal proceedings in the London Court of International Arbitration and the London High Court. However, it is not known whether the sum has been repaid to the Malaysian government. As for the ‘settlement’ representation letters sent by both Najib and Irwan, the outcome has not been determined until now. On Feb 7, the High Court dismissed Arul Kanda’s application to amend his defence and add the counterclaim over the termination of his contract extension. Arul Kanda, who was acquitted in the 1MDB audit tampering trial with former prime minister Datuk Seri Najib Razak in March last year, is seeking via the counterclaim close to RM57 million in aggravated, exemplary and general damages from 1MDB following his dismissal. Zahid Izzani/ The Edge

tHURSday JUNE 20, 2024 13 The E dge C E O m o rning brief NOW OPEN FOR SUBMISSIONS >>> • Entry forms can be downloaded for free from theedgemalaysia.com and edgeprop.my. • For enquiries, please contact us at 603-7721 8198 or [email protected] SUBMISSION DEADLINE All entries must reach The Edge Communications Sdn Bhd at Level 3, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor, by 5PM, FRIDAY, JUNE 28, 2024 The Edge Malaysia Top Property Developers Awards, the anchor awards of The Edge Malaysia Property Excellence Awards, was established in 2003 to rank Malaysia’s best property players based on their quantitative and qualitative attributes. The Edge Malaysia-PAM Green Excellence Award is an exercise to recognise property developments that demonstrate sustainable design that is innovative and outstanding while contributing positively to the community. The Edge Malaysia Affordable Urban Housing Excellence Award is an exercise to recognise outstanding affordable housing projects for the urban middleincome group undertaken wholly by private sector property developers in Malaysia. The Edge Malaysia-PEPS Value Creation Excellence Award is an exercise to measure the capital appreciation of properties between the property developers’ selling price and the subsequent resale price in secondary transactions. The Edge Malaysia Outstanding Overseas Project Award is an exercise to recognise impressive projects undertaken wholly by Malaysian private sector property developers in other countries. Official Solar Partner Supported By REAL ESTATE MATTERS Presented by

thursday june 20, 2024 14 The E dge C E O m o rning brief home KUALA LUMPUR (June 19): The Malaysian Bar’s challenge of the emergency promulgation in 2020 by then prime minister Tan Sri Muhyiddin Yassin and the government will be heard at the High Court and not at the Federal Court as initially attempted by the plaintiffs. This follows the Federal Court on Wednesday dismissing the six leave questions posed by the Malaysian Bar to the apex court, ruling that they do not satisfy or pass the threshold for the three-member bench to grant leave (permission) for the merits of their application. Court of Appeal president Tan Sri Abang Iskandar Abang Hashim, who led the bench, said the decision was unanimous as the six questions posed do not pass the threshold of Section 96 of the Courts of Judicature Act (CJA). “This follows there is no decision by the courts below on the matter for this apex court to grant leave. Hence, it has not passed the threshold set under Section 96 of the CJA. “The bench made no order as to costs,” Abang Iskandar said. He sat with Federal Court judges Datuk Rhodzhariah Bujang and Datuk Nordin Hassan. With the decision on Wednesday, the 27 questions with regards to the Malaysian Bar’s challenge on the emergency promulgation will be heard and decided by the High Court at another date. The Bar was represented by counsels Steven Thiru, Abdul Rashid Ismail and Gregory Das while senior federal counsels Rahazlan Affendi Abdul Rahim and Liew Horng Bin appeared for the government and Muhyiddin. In May 2022, High Court judge Datuk Ahmad Kamal Md Shahid dismissed both applications by the Malaysian Bar and election watchdog Bersih 2.0 to refer the constitutional questions regarding the emergency proclamation directly to the apex court. “I am of the considered opinion that the subject matter of this application is not within the exclusive jurisdiction of the Federal Court. The jurisdiction to determine the constitutional questions lies within the High Court. “Thus, whether the application to refer questions to the Federal Court should be allowed, I would answer in the negative. Based on the aforesaid reason, this application to refer the questions to the Federal Court under Section 84 of the Courts of Judicature Act is hereby dismissed with no order as to costs,” Ahmad Kamal then ruled. The Court of Appeal subsequently upheld the High Court decision on Oct 28, 2023, ruling that it was bound by the decision made by another appellate bench with regards to the Bersih 2.0 case. Datuk Azizul Azmi Adnan, who wrote the unanimous Court of Appeal decision, said there was no appealable error made by the High Court’s decision in not wanting to refer the 27 questions posed directly to the Federal Court. “This bench considers ourselves bound by the principle of stare decisis (to stand by things already decided), and are constrained to dismiss the appeal (following the Bersih case). “This follows that it is not within the exclusive jurisdiction of the Federal Court to answer the suitable questions posed in these questions (as this matter could be decided by the High Court),” Azizul added. The Malaysian Bar posed 27 questions of law regarding the emergency proclamation, while Bersih is said to have posed similar questions. Malaysian Bar’s challenge of emergency promulgation in 2020 to be heard at High Court KUALA LUMPUR (June 19): Despite being a private company, SRC International Sdn Bhd was run akin to any government department under former prime minister Datuk Seri Najib Razak, the High Court heard on Wednesday. Former company director Datuk Suboh Md Yassin said that Najib had “full and absolute control” over all aspects of running the company, so much so that Suboh, who retired from the civil service in 2009 after 35 years of service, felt that his experience as a non-executive board member in SRC was no different from that of a government employee. “One must understand that even though SRC is a private limited company (Sdn Bhd), the way SRC was run — its corporate governance, setup, [objectives], and operation — were in effect and in reality, an extension of governmental activities of the Ministry of Finance (MOF). “The running of SRC felt just like any other government department under the direction of [Najib], the Prime Minister and Minister of Finance at that material time. [Najib] had full and absolute control over all aspects of the running of SRC, to the exclusion of the board,” the 73-year-old testified.He added that as civil servants, they were used to and were expected to follow directions from “the top”. “If the top required us to do something, we were not in any position to object to or to override any decision that we were instructSRC ran like government dept, Najib had full control, says Suboh ed to implement, and [we were expected] to take all necessary steps to give effect to the underlying transactions of these instructions,” he said. Read the full story by Tarani Palani theedgemalaysia.com by Hafiz Yatim theedgemalaysia.com Former company director Datuk Suboh Md Yassin said at the SRC International Sdn Bhd trial that as civil servants, they were used to and were expected to follow directions from ‘the top’ and ‘we were not in any position to object to or to override any decision that we were instructed to implement.’ Suhaimi Yusuf/The Edge

thursday june 20, 2024 15 The E dge C E O m o rning brief home PUTRAJAYA (June 19): The second disciplinary proceeding against Deloitte auditor, Ng Yee Hong, for possible professional misconduct over his role in signing off on the 1Malaysia Development Bhd audit reports ending March 31, 2013 and March 31, 2014 will proceed. The second proceeding follows a complaint from former Damansara Member of Parliament Tony Pua against Ng over his role in preparing the audit report. The Federal Court on Wednesday dismissed Ng’s leave request to revisit the merits of his appeal to be heard with regards to the second disciplinary committee proceeding by the Malaysian Institute of Accountants (MIA) which had been put on hold since 2019. In civil proceedings, leave (permission) has to be gained first before the merits of an appeal can heard. A three-member bench, led by Federal Court judge Datuk Zabariah Mohd Yusoff, refused to grant leave to Ng to have five questions of law to be heard on its merits. In the unanimous decision, Zabariah said the questions posed before the apex court did not fulfil the threshold under Section 96 of the Courts of Judicature Act. “This court directs the second (disciplinary) proceeding to proceed, and we move on from there. “The motion is dismissed with no order as to costs,” said Zabariah, who sat with Federal Court judges Datuk Seri Hasnah Mohamed Hashim and Datuk Vazeer Alam Mydin Meera. Ng’s counsel, Datuk Malik Imtiaz Sarwar, had argued before the bench that the second disciplinary proceeding was res judicata as the disciplinary committee (DC) had already found his client guilty in the first proceedings with regards to the 2014 1MDB audit report following a complaint lodged by Andrew Anand Solomon Devasahayam. Ng was subsequently suspended for two years and fined RM5,000 for his action in signing or sanctioning the 2014 1MDB audit report. Res judicata is a legal term meaning a matter that had been adjudicated by a competent court and hence may not be pursued further. Imtiaz said the second proceeding, which had been stayed since 2019 after Pua had testified, should not be held as action had already been taken against his client. Imtiaz further argued that the Court of Appeal decision to reinstate the second proceeding did not address the issue of res judicata. Ng asked for proceedings to be separated However, MIA counsel Porres Royan replied that it was Ng who had in the first place asked for the two proceedings to be separated. “It was the applicant (Ng) who sought to defer the second proceeding. They (Ng) had asked for the deferment, whereas both sets of charges were presented at the same time,” he added. The DC, represented by John Matthew, argued that the second proceeding concerns a complaint lodged by Pua over the 1MDB March 31, 2013, and March 31, 2014, audit reports, which was different from the first proceeding. Hence, he argued that the principle of res judicata did not apply as the matters before the two proceedings are on two different charges. On Jan 12 this year, the Court of Appeal reinstated the hearing of Ng’s second proceeding after the KL High Court had allowed Ng’s judicial review to quash the second hearing. by Hafiz Yatim theedgemalaysia.com Deloitte auditor who signed off on 1MDB 2013, 2014 audit reports will have to face second disciplinary proceeding, apex court rules Court of Appeal judge Datuk Azizah Nawawi said the charges levelled against Ng by Pua are not identical or the same as an earlier one lodged by Devasahayam, the first complainant. “The present case (Pua’s complaint) is different from Devasahayam’s case, as they were proffered at the same time and would have been heard together if Ng did not object to the consolidation. “Ng had even requested for Pua’s complaint to be deferred after the hearing of Devasahayam’s complaint. Therefore, there is no issue of the disciplinary committee raising an identical complaint...Ng himself had taken the position that Pua’s complaint is not the same as Devasahayam, that they are not identical,” she said. Azizah said since Ng had conceded that the two complaints are not identical, the issue of res judicata raised by Ng’s lawyers did not arise. Prior to this, the High Court had on May 11, 2022, allowed Ng’s application to strike out Pua’s complaint dated Nov 5, 2015, to bar the DC from hearing Pua’s complaint, resulting in this appeal. Following the two complaints lodged, the investigation committee had on Sept 28, 2017, issued separate reports and proposed three distinct charges to be proffered against Ng on Devasahayam’s complaint, and another three charges following Pua’s complaint.

thursday june 20, 2024 16 The E dge C E O m o rning brief home JOHOR BAHRU (June 19): Five family members suspected of being involved in the Ulu Tiram police station attack last month, which caused the death of two policemen and another injured, were brought before the Sessions Court here on Wednesday on terrorism-related charges. The charges against Radin Imran Radin Mohd Yassin, 62, Radin Romyullah Radin Imran, 34, Rosna Jantan, 59, Farhah Sobrina Radin Imran, 23, and Mariah Radin Imran, 19, were read before Judge Datuk Che Wan Zaidi Che Wan Ibrahim, but no pleas were recorded from the five accused because the case comes under the jurisdiction of the High Court. According to the charges, Radin Imran, who is the father of the suspects, is accused of encouraging terrorist acts by instilling the ideology of terrorism linked to the Islamic State (IS) terrorist group to his wife, Rosna, his two sons, including the suspect Radin Luqman Radin Imran, 21, and Radin Romyullah and his two daughted in a house at No 15, Lot 1288, Jalan Rabani, Kampung Sungai Tiram, here between the end of 2014 and May 17. The offence is under Section 130G(a) of the Penal Code which carries a prison sentence of up to 30 years and a fine; Section 130J(1) of the Penal Code which is life imprisonment or not more than 40 years or a fine and confiscation of the property used; and Section 130JB(1)(a) of the Penal Code which is imprisonment of not more than seven years or a fine and confiscation of the substance, if convicted. Meanwhile, the second accused, Radin Romyullah, who is also the suspect’s brother, was charged with two counts of swearing allegiance to the leader of the IS group, Abu Bakar Al-Baghdadi, and possessing an “external hard disc” containing materials related to IS and the group’s activities in the same location. Read the full story Five family members allegedly involved in Ulu Tiram police station attack charged with terrorism-linked offences KOTA BHARU (June 19): The Nenggiri seat is vacant from Wednesday, said Kelantan State Legislative Assembly Speaker Datuk Mohd Amar Nik Abdullah. He said the decision was made after the state assembly received a written notice under Clause (3) of Article 31A of the State Constitution from Nenggiri assemblyman Mohd Azizi Abu Naim on June 13. The speaker said apart from that, Bersatu on June 12 also informed that Mohd Azizi’s Bersatu membership had been revoked, and subsequently, the seat is vacant. “Therefore, I declare in accordance with Clause 1, Article 31A that there is an unexpected vacancy in the Nenggiri seat represented by Mohd Azizi,” the speaker said at a special press conference at his office in the Kota Darulnaim Complex here on Wednesday. The speaker said that according to Clause 4(4) of Article 31A, the vacant seat must be filled within 60 days from the date the Election Commission (EC) receives the vacancy notice. The speaker added that the matter also involves the development of the Nenggiri seat, after Mohd Azizi, who is also the Member of Parliament for Gua Musang, had previously pledged his support to Prime Minister Datuk Seri Anwar Ibrahim. “In Kelantan, we are confident that we can retain victory in Gua Musang and Nenggiri, while the candidate will be determined by the highest level of the party. “In this context, who is contesting, and where the candidate is from, is usually for the top leadership to decide,” the speaker said. Mohd Amar, the speaker, is a member of PAS. Both PAS and Bersatu are in the Perikatan Nasional coalition. He said his duty as the speaker is to only declare a vacancy, while the EC will determine when the seat will be filled within 60 days from the date the commission receives the vacancy notice. Previously, the media had reported that six MPs and one assemblyman of Bersatu were revoked of their membership with immediate effect, after they failed to respond to a letter from the supreme leadership council to pledge allegiance to the party. They are Bukit Gantang MP Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal, Zahari Kechik (Jeli), Mohd Azizi, Datuk Iskandar Dzulkarnain Abdul Khalid (Kuala Kangsar), Datuk Suhaili Abdul Rahman (Labuan) and Datuk Dr Zulkafperi Hanafi (Tanjong Karang), and Selat Klang assemblyman Datuk Abdul Rashid Asari. Kelantan speaker declares Nenggiri state seat vacant Bernama Bernama ters Farhah Sobrina and Mariah. Radin Imran was also charged with three more counts of supporting terrorist acts by keeping four (home-made) air rifle type firearms to carry out IS activities; pledge allegiance to the leader of the terrorist group, Abu Bakar Al-Baghdadi; and possession of a book related to IS. All the offences were allegedly commitThe vacant state seat must be filled within 60 days from the date the Election Commission receives the vacancy notice, according to the Kelantan speaker. Shahrin Yahya/The Edge

thursday june 20, 2024 17 The E dge C E O m o rning brief world Putin and Kim sign mutual defence pact Philippines demands China to pay for damages, return guns after South China Sea clash ‘Give us the tools and we’ll finish the job,’ Israeli PM tells US by Cliff Venzon Bloomberg by Alisa Odenheimer Bloomberg by Josh Smith & Ju-min Park Reuters (June 19): China’s coast guard “looted” firearms and destroyed Philippine boats during a South China Sea clash this week, military officials said, prompting Manila to demand compensation from Beijing. “They have no right or legal authority to hijack our operations, and destroy Philippine vessels operating within our exclusive economic zone,” Philippine military chief Romeo Brawner Jr said of Chinese forces in a briefing on Wednesday. “They are acting like pirates.” China Coast Guard personnel “illegally” boarded Philippine rubber boats during Manila’s resupply mission on Monday to its military outpost in the Second Thomas Shoal, Alfonso Torres Jr, the head of the Armed Forces of the Philippines’ Western Command, said. They then seized and disassembled the firearms found in the Philippine boats, he said. “The firearms were looted,” Torres said, adding that the Chinese crew also “deliberately punctured” Philippine rubber boats using knives and other pointed materials during the encounter. The details of Monday’s encounter, one of the most serious incidents yet between the two countries in the disputed, resource-rich waterway, were revealed, as the Philippines and other countries denounced China’s latest actions. China on Wednesday maintained that the “law enforcement measures” taken by its coast guard were professional. “It only stopped Philippine vessels from illegal transportation. No direct measures have been taken against Philippine personnel,” China Foreign Ministry spokesperson Lin Jian said at a regular briefing in Beijing, accusing Manila of “smuggling” weapons and construction materials, and attempting to occupy the Second Thomas Shoal. SEOUL (June 19): Russian President Vladimir Putin signed a deal with North Korea’s Kim Jong Un on Wednesday that includes a mutual defence pledge, one of Russia’s most significant moves in Asia for years that Kim said amounted to an “alliance”. Putin’s pledge overhauls Russia’s entire post-Soviet policy on North Korea just as the United States and its Asian allies try to gauge how far Russia could deepen support for the only country to have tested a nuclear weapon this century. On his first visit to Pyongyang since July 2000, Putin explicitly linked Russia’s deepening of ties with North Korea to the West’s growing support for Ukraine and said Moscow could develop military and technical cooperation with Pyongyang. After talks, they signed a “comprehensive strategic partnership” pact, which Putin said included a mutual defence clause in the case of aggression against either country. “The comprehensive partnership agreement signed today provides, among other things, for mutual assistance in the event of aggression against one of the parties to this agreement,” Putin said. Read the full story (June 19): Israeli Prime Minister Benjamin Netanyahu said US President Joe Biden is withholding weapons amid the war against Hamas as his country is “fighting for its life”, an accusation the White House denied. In an English-language video released on Tuesday, Netanyahu said he told US Secretary of State Antony Blinken during his visit to Israel last week that he appreciates Washington’s support, but that it’s “inconceivable” that weapons or ammunition had been held back in the past few months. That video angered the White House, and prompted the Biden administration to cancel a high-level meeting with Israel about Iran that was scheduled for Thursday, Axios reported, citing two US officials. US envoy Amos Hochstein delivered the administration’s frustration directly in a meeting with Netanyahu, according to the report. US officials didn’t immediately respond to a question about the meeting. Earlier, the White House denied that any weapons are being withheld beyond a previous decision to hold back on the delivery of some bombs. “We genuinely do not know what he’s talking about,” Press Secretary Karine Jean-Pierre told reporters. “We just don’t.” Read also: Taiwan president says only military strength can keep the peace with China Read the full story reuters bloomberg Russia’s President Vladimir Putin (left) shakes hands with North Korea’s leader Kim Jong-un at a signing ceremony following bilateral talks in Pyongyang, North Korea on June 19.

thursday june 20, 2024 18 The E dge C E O m o rning brief world LONDON (June 19): Urgent action must be taken in the Red Sea to stop attacks on merchant shipping by Yemen’s Houthis, leading industry groups said on Wednesday, after the sinking of a second ship. Iran-aligned Houthi militants first launched drone and missile strikes on the important trade route in November in what they say is solidarity with Palestinians in Gaza. In more than 70 attacks, they have also seized one vessel and its crew and killed at least three seafarers. “It is deplorable that innocent seafarers are being attacked while simply performing their jobs, vital jobs which keep the world warm, fed, and clothed,” the world’s top shipping associations said in a joint statement. “These attacks must stop now. We call for states with influence in the region to safeguard our innocent seafarers and for the swift de-escalation of the situation in the Red Sea.” The Greek-owned Tutor coal carrier attacked by Yemen’s Houthi militants in the Red Sea last week has sunk, salvagers confirmed on Wednesday. The vessel was struck with missiles and an explosive-laden remote-controlled boat, according to sources. International naval forces have been deployed to provide mainly defensive support for ships still sailing through the Red Sea, but the attacks have increased significantly. Insurance industry sources said on Wednesday there was also mounting concern over the use of attack drone boats by the Houthis. “They are harder to defend against and potentially more lethal as they strike the waterline,” one industry source said. “Missiles have — to date — mainly caused deck and superstructure damage [to ships].” There have been 10 Houthi strikes so far in June compared with five in May, said Munro Anderson, head of operations at marine war risk and insurance specialist Vessel Protect, part of Pen Underwriting. “The first successful use of an unmanned surface vessel represents a new challenge for commercial shipping within an already complex environment,” he added. Insurance industry sources said that additional war risk premiums, paid when vessels sail through the Red Sea, had hovered close to 0.7% of the value of a ship in recent days from around 1% earlier this year. They added that with a second ship sinking and the losses likely to emerge from that, rates are likely to firm up, adding hundreds of thousands of dollars of extra costs to every voyage. Shipping industry urges Red Sea action as Houthis sink second vessel LONDON (June 19): Oil prices hit seven-week highs on Wednesday as summer demand optimism and concerns over escalating conflicts offset an industry report that said US crude inventories unexpectedly rose. Brent crude futures for August LCOc1, due to expire on Thursday, were up 20 cents to US$85.53 a barrel by 1235 GMT, while the more active September contract LCOc2 gained 21 cents to US$84.74. US West Texas Intermediate crude CLc1 was up 3 cents to US$81.60 per barrel. “The current snapshot presents an underwhelming picture but there are green shoots that indicate a more optimistic outlook,” said Tamas Varga of oil broker PVM. The Brent price being US$8 over the lows hit in early June “shows genuine optimism that the global oil balance will eventually tighten,” Varga added. Both benchmarks, having recovered strongly in the last two weeks, gained more than US$1 in the previous session to seven-week peaks after a Ukrainian drone strike led to an oil terminal fire at a major Russian port. In the Middle East, Israeli Foreign Minister Israel Katz warned of a possible “all out war” with Lebanon’s Hezbollah, even as the US attempted to avoid a broader conflict between Israel and the Iran-backed group. An escalating war risks supply disruption in the key oil-producing region. “Any cooling off between both parties seems difficult in the near term, which may keep oil prices well-supported as market participants shrug off pockets of weakness on the economic front, from weaker-than-expected US retail sales to mixed sets of data out of China this week,” said Yeap Jun Rong, a market strategist at IG in Singapore. Oil hits sevenweek high on demand hopes, war jitters by Noah Browning & Deep Kaushik Vakil Reuters by Jonathan Saul Reuters Sailors from the Dwight D Eisenhower Carrier Strike Group assist distressed mariners rescued from the Liberian-flagged, Greek-owned bulk carrier MV Tutor that was attacked by Houthis, in the Red Sea on June 15. reuters

thursday june 20, 2024 19 The E dge C E O m o rning brief world TOKYO (June 19): Japan’s weak yen sharply boosted the value of exports in May but the volume of sales shrank for the fourth consecutive month, highlighting that global demand is still relatively soft and complicating the central bank’s monetary tightening path. The Bank of Japan last week took a step forward to reduce its huge bond purchases as part of plans to exit years of massive stimulus. The soft underbelly in the trade report though adds to the picture of a fragile economy, making future interest rate hikes far from assured. Shipments rose 13.5% year-on-year in value terms in May, driven by US-bound shipments of cars and China-bound chip-making machinery, data from the Ministry of Finance (MOF) showed on Wednesday. That compared with a 13.0% increase seen by analysts in a Reuters poll and an 8.3% gain in April. Exports in terms of volume, however, dipped 0.9% year-on-year in May, reflecting tepid global demand. “The big increase in exports was caused by the weak yen, but actual demand was not that strong,” Takeshi Minami, chief economist at Norinchukin Research Institute, said. “Europe-bound exports are weakening, US-bound shipments are peaking out,” Minami said. “As overall exports are likely to slow down going forward, you cannot expect exports to become a main engine of growth over the next 1-2 years.” Read also: Japan’s flood of tourists prompts call to charge foreigners more Influx of new CEOs in Japan brings shift in generational mindset Weak yen lifts exports, but falling volume highlights soft demand (June 19): Japanese Prime Minister Fumio Kishida defied calls for a general election in the first party leaders’ debate since he came to office, which came as his support hits record lows. Kenta Izumi, leader of the main opposition Constitutional Democratic Party (CDP), urged Kishida to seek voters’ verdict on political funding reform measures that passed parliament on Wednesday, calling them a failure. Other opposition party leaders, including Nobuyuki Baba of the Japan Innovation Party, urged Kishida to step down. Kishida pushed back, saying he wanted to focus on tackling issues including the economy and to fulfil his responsibility as leader to restore trust in politics. The prime minister’s chances of leading his long-ruling Liberal Democratic Party (LDP) into the next election look to be fading, with two polls over the weekend showing voter approval at its lowest since he took office in 2021. Three months ahead of a party leadership race, he’s struggling to mollify a public angered by a series of scandals, despite voter-friendly measures including a tax rebate. No general election needs to be called until 2025, but a poll by the Asahi newspaper conducted June 15-16 found 24% of those surveyed would vote for the LDP if it were held right away, compared with 19% for the CDP. The LDP has suffered losses in special parliamentary elections and a local gubernatorial race and refrained from fielding its Japanese PM defies election calls in debate as support sags own candidate for the July 7 election to pick the governor of Tokyo. Criticism is even beginning to emerge from within the ruling party, with LDP lawmaker Hiroaki Saito this week accusing Kishida of not taking responsibility. Much-criticised legislation meant to clamp down on political slush funds — which Kishida set out as a priority — passed earlier in the day. Another factor playing into the timing of the general election may be the diplomatic agenda. Kishida is widely expected to head to Washington in July for a Nato summit along with South Korean President Yoon Suk Yeol. The two nations and the US are aiming to formalise their security partnership before the US presidential election. Kishida may also visit Germany the same month, public broadcaster NHK reported Tuesday. While no one from the LDP has publicly thrown their hat into the ring to replace Kishida, the Asahi poll found former defence minister Shigeru Ishiba was the most popular candidate to become the next prime minister, with 22% of respondents picking him. Former environment minister Shinjiro Koizumi was second with 16%. Both politicians have distanced themselves from the current government. by Yoshiaki Nohara & Takashi Hirokawa Bloomberg by Tetsushi Kajimoto & Makiko Yamazaki Reuters reuters

thursday june 20, 2024 20 The E dge C E O m o rning brief world (June 19): Thailand’s central bank remains firm in its opposition to a government plan to give nearly US$14 billion (RM65.92 billion) in cash to almost all adult citizens to revitalise consumption activity, saying the prudent thing would be to focus on the needy. With private consumption forecast to expand about 4% this year after a record growth of 7% last year, there’s no need to stimulate demand across the board, Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput said in an interview on Tuesday. The so-called digital wallet programme, which currently promises 10,000 baht (RM1,283) each in cash to 50 million Thai citizens 16 years and older, should only cover the 15 million welfare cardholders, according to Sethaput. While Sethaput’s comments are in line with a view previously articulated by the BOT, the timing of the remarks is bound to rattle the government and deepen a long-running feud between the two over how to handle the economy. Pushing the 500-billion baht cash programme through hasn’t been exactly easy: Prime Minister Srettha Thavisin’s administration has faced numerous questions over its funding and the roll out has been delayed multiple times. Srettha has so far sidestepped opposition to the programme and touted it as a way to lift Thailand’s economy from years of sluggish growth. The digital wallet will have a “whirlwind” impact on stimulating the economy, the premier told the parliament on Wednesday, adding the tax revenue generated from the programme will be used to boost the nation’s competitiveness, he said. “If you want to do the scheme, it is better to do it in a targeted way and also a smaller way,” Sethaput said. “We don’t see the need to try to stimulate consumption across the board.” Even as private consumption boomed with a recovery in tourism, vulnerable and lower income households were still reeling from the pandemic impact and in need of help, according to the governor. Limiting the digital wallet to welfare cardholders — people below a certain level of income and eligible for various state subsidies and allowances — will be “healthier” from a fiscal standpoint, Sethaput said. The main election pledge of the ruling Pheu Thai party, the digital wallet has been dogged by controversies over the government’s shifting stance on how to finance it. After initially proposing to cover about 55 million Thais and financing it through state budget, Srettha’s cabinet decided to exclude affluent Thais and fund it through a one-off borrowing. But potential legal challenges and warnings from the nation’s anti-graft agency prompted the government to rework the funding options. Srettha has pledged to distribute the cash in the final quarter of this year even though uncertainty remains about how it will be funded. As the banking regulator, the BOT has advised the government to ensure that the move to borrow 172 billion baht from the Bank for Agriculture and Agricultural Cooperatives to fund the digital wallet doesn’t hurt the lender’s safety and liquidity, Sethaput said. Thai central bank renews case to limit US$14 bil stimulus BANGKOK (June 19): Thai Prime Minister Srettha Thavisin on Wednesday proposed a 3.753 trillion baht (RM480.8 billion) budget for the 2025 fiscal year to jump-start the country’s sluggish economy as lawmakers began a three-day debate. The budget is aimed at helping the economy grow at its full potential, Srettha told the House of Representatives. Southeast Asia’s second-largest economy is expected to grow 2.5% to 3.5% in 2025, with inflation projected at 0.7% to 1.7%, he said. The government is targeting growth of at least 3% this year, after last year’s 1.9% expansion lagged regional peers. “Deficit budgeting is important and necessary to stimulate a slow economy to grow significantly,” Srettha said. The 2025 budget papers project a 7.8% rise in spending and an increase of 24.9% in the budget deficit to 865.7 billion baht from the 2024 fiscal year. The government earlier said some 152.7 billion baht of the 2025 budget would be used to help finance a signature 500 billion baht “digital wallet” handout scheme. Thai PM proposes US$102 bil budget to parliament to revive economy by Orathai Sriring, Thanadech Staporncharnchai & Panarat Thepgumpanat Reuters by Suttinee Yuvejwattana & Thomas Kutty Abraham Bloomberg reuters

thursday june 20, 2024 21 The E dge C E O m o rning brief world (June 19): The bullish chorus on Taiwan Semiconductor Manufacturing Co is growing even louder as an unstoppable stock rally puts its market capitalisation one step closer to the US$1 trillion (RM4.71 trillion) milestone. TSMC overtook Berkshire Hathaway Inc last week to become the eighth-largest company globally in terms of market capitalisation, based on the firm’s US-listed ADRs. The depository receipts’ 73% gain this year has boosted the firm’s market value to US$932 billion, shy of the US$1 trillion threshold. The foundry sector leader has emerged as a major beneficiary of the widening adoption of artificial intelligence, with its cutting-edge technology and reasonable valuation making it a favorite play among global investors. TSMC has also prospered from being the main advanced-chip supplier of Nvidia Corp — recently crowned the world’s most-valuable company. Wall Street brokerages have lifted their price targets for TSMC this week, citing surging AI-related demand and potential price hikes in 2025 to drive up earnings. JPMorgan Chase & Co raised its AI revenue estimate to 35% of total sales by 2028 while Citigroup Inc lifted its price target by 12% on a stronger earnings outlook. Goldman Sachs Group Inc sees three- and five-nanometre chip manufacturing prices advancing by a “low single digit percentage,” and increased its 12-month price target by 19% to NT$1,160. TSMC ADRs near US$1 tril club amid flurry of target upgrades (June 19): Nvidia became the world’s most valuable company on Tuesday, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence technology. Shares of the chipmaker climbed 3.5% to US$135.58, lifting its market capitalisation to US$3.335 trillion (RM15.7 trillion), just days after overtaking iPhone maker Apple to become the second most valuable company. Microsoft’s stock market value was US$3.317 trillion as its shares dipped 0.45%. Apple’s stock slipped over 1%, leaving its value at US$3.286 trillion. Nvidia’s stunning surge in market value over the past year has become emblematic of a Wall Street frenzy driven by optimism about emerging AI technology. While Nvidia’s rally has lifted the S&P 500 and Nasdaq to record highs, some investors worry that unbridled optimism about AI could evaporate if signs emerge of a slowdown in spending on the technology. “It’s Nvidia’s market; we’re all just trading in it,” said Steve Sosnick, chief market strategist at Interactive Brokers. Nvidia has also become by far the most traded company on Wall Street, with daily turnover recently averaging US$50 billion, compared to around US$10 billion each for Apple, Microsoft and Tesla, according to LSEG data. The chipmaker now accounts for about 16% of all trading in S&P 500 companies. Nvidia’s stock has nearly tripled so far this year, compared with a rise of about 19% in Microsoft shares, with demand for its top-of-the-line processors outpacing supply. Tech giants Microsoft, Meta Platforms and Google-owner Alphabet are competing to build out their AI computing capabilities and add the technology to their products and services. An insatiable appetite for Nvidia’s AI processors, viewed as far superior to competitors’ offerings, has left them in tight supply, and many investors view Nvidia as the greatest winner to date from surging AI development. “Nvidia has been getting a lot of positive attention and has been doing a lot of things very correctly, but a small misstep is likely to cause a major correction in the stock, and investors should be careful,” said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. Tuesday’s gain lifted Nvidia’s stock to a record high and added over US$110 billion to its market capitalisation, equivalent to the entire value of Lockheed Martin. The company’s market value expanded from US$1 trillion to US$2 trillion in just nine months in February, while taking just over three months to hit US$3 trillion in June. Since its blowout forecast about a year ago, the company has consistently breezed past Wall Street’s lofty expectations for revenue and profit, with demand for its graphics processors far outstripping supply as companies rush to embed AI applications. Nvidia eclipses Microsoft as world’s most valuable company by Noel Randewich & Ankika Biswas Reuters by John Cheng Bloomberg reuters Bloomberg

thursday june 20, 2024 22 The E dge C E O m o rning brief world Apple turns to third parties for ‘buy now, pay later’ after sunsetting product (June 19): Huawei Technologies Co is nearing a deal to let Tencent Holdings Ltd’s WeChat super app operate fully on its Harmony mobile platform without sharing any revenue, a concession designed to defend its newfound lead over Apple Inc in China. The deal, in which Huawei will agree not to charge Tencent any fee for in-app transactions within the WeChat universe, comes after months-long negotiations between the two Shenzhen-based tech behemoths, according to people with knowledge of the matter. They declined to be named discussing private corporate information. The arrangement will likely make WeChat a rare exception in Huawei’s plan to start charging a fee for content and services on its app store. Huawei is considering taking a cut of in-app purchases on its Harmony platform, and it has been discussing a fee of about 20% with game developers, Bloomberg News reported earlier this week. In return, Tencent will maintain and update the WeChat app that hundreds of millions of Chinese rely on daily for everything from payment to gaming, the people said. The agreement, once sealed, would also be a boon for Tencent as it looks to drive more sales from WeChat’s mini programmes, its platform for lite-versions of popular apps such as Didi. Tencent generated 1.5 trillion yuan (RM975.8 billion) in gross merchandise value from its mini programs in the September quarter last year. Currently users can download and use WeChat on Huawei handsets, but the two companies do not have a formal arrangement that obligates Tencent to provide regular updates to the app. The deal, which will not create a perceivable change for phone owners, also requires Huawei to continue to host and support WeChat. Huawei, Tencent near deal to exclude WeChat from revenue sharing by Pei Li Bloomberg by Hannah Lang Reuters Bloomberg reuters (June 19): Although Apple is discontinuing its buy now, pay later service launched last year, the company is sticking with the product, with a successor to the offering launching later this year via third-parties like Affirm. Buy now, pay later (BNPL) exploded in popularity as the Covid-19 pandemic forced more shoppers online, and the product has continued to resonate with consumers. BNPL loans drove US$75 billion (RM353.5 billion) in online spending in 2023, up 14.3% from 2022, according to Adobe Analytics. In a statement on Monday, Apple said its new solution “will enable us to bring flexible payments to more users, in more places across the globe in collaboration with Apple Pay-enabled banks and lenders.” It did not comment further about why it was ending its independent BNPL offering. Existing users of the BNPL service, Apple Pay Later will still be able to manage and pay open loans via the Wallet app, the company said. Apple announced last week that Apple Pay users would be able to access new installment loan offerings this fall, including the ability to apply for BNPL loans directly through Affirm when they check out with Apple Pay. Customers will also be able to access installments from credit and debit cards, the tech giant said. Analysts had viewed Apple’s original BNPL product as a competitor to BNPL providers like Affirm. It offered customers the ability to buy products and pay in four interest-free installments for items up to US$1,000. Affirm offers users the option to pay for products in two or four installments, as well as monthly installments for higher-cost items. “To me, this sounds a lot like what we see happening with debit cards,” said Sean Gelles, director of payments intelligence at JD Power. “Regardless of which debit card a consumer has funding their purchases, as long as they use Apple Pay, it’s Apple that owns the experience.” Gelles added that if Apple’s new portfolio of BNPL products are delivered via Apple Pay there would be “minimal risk for Apple as they will thereby retain the relationship with the customer.”

thursday june 20, 2024 23 The E dge C E O m o rning brief world (June 19): The US budget deficit will jump to US$1.915 trillion (RM9 trillion) for fiscal 2024, topping last year’s US$1.695 trillion gap as the largest outside the Covid-19 era, the Congressional Budget Office said on Tuesday, citing increased spending for a 27% increase over its previous forecast. The CBO said in an update to its budget outlook that higher outlays for student loan relief, Medicaid healthcare for the poor, higher Federal Deposit Insurance Corp costs to resolve bank failures and US aid to Ukraine and Israel make up the bulk of a US$408 billion increase in this year’s projected deficit since February, when it forecast a US$1.507 trillion deficit. If realised, the forecast for the fiscal year ended Sept 30 would mean a second consecutive substantial deficit increase for US President Joe Biden after deficits fell substantially in 2022 as Covid spending subsided. CBO forecast that the deficit would climb further in fiscal 2025 to US$1.938 trillion. Asked later about the budget setback, White House spokesperson Karine JeanPierre said she had not seen the CBO update, but added that Biden was working “to do everything that he can to do the right thing when it comes to lowering the deficit.” US$2 trillion jump For the fiscal 2025-2034 decade, the CBO raised its cumulative deficit forecast to US$22.083 trillion, up US$2.067 trillion from the February projection. It said debt held by the public at the end of 2034 would total US$50.7 trillion, or 122% of gross domestic product, compared to the February forecast of 48.3 trillion, or 116% of GDP. Factors pushing up the long-term deficits included US$1.6 trillion in increased outlays related to recent legislative changes, including extensions of the supplemental funding of US$95 billion passed this year for Ukraine, Israel and the Indo-Pacific region, CBO said. A strengthened economic outlook reduced the long-term deficits by US$600 billion over 10 years in the latest forecast, but this was also offset by a US$1.1 trillion deficit increase due to technical revisions, including upward revisions to outlays for debt interest and healthcare costs. CBO now expects net interest costs to reach US$1.7 trillion in fiscal 2034, up from US$658 billion in 2023. Michael Peterson, the chief executive officer of the Peter G Peterson Foundation, which advocates for deficit reduction, said report shows that the US debt challenge was getting worse. by David Lawder Reuters Increased spending pushes 2024 US budget deficit estimate to US$1.9 tril “The harmful effects of higher interest rates fuelling higher interest costs on a huge existing debt load are continuing, and leading to additional borrowing,” Peterson said in a statement. “It’s the definition of unsustainable.” The estimates are based on current tax and spending laws and assume that individual tax cuts passed by Republicans in 2017 will expire on schedule at the end of 2025. Tax experts estimate that making all of these cuts permanent, which Republican presidential candidate Donald Trump has proposed, would add another US$4 trillion to the 10-year deficit. The CBO, Congress’ non-partisan budget referee agency, also updated its US economic projections, increasing its calendar 2024 forecast for real gross domestic product growth to 2.0% from 1.5% in February, amid stronger-than-projected activity, job growth and inflation. The CBO projects a lower unemployment rate for 2024 at 3.9% compared to 4.2% in February and includes no Federal Reserve interest rate cuts this year. It said a significant source of the economic improvement was due to a surge in immigration in recent years, leading to an increase of 8.7 million US residents from 2021 to 2026 over historical levels. Should the trend continue, it said the surge would increase GDP by a total of US$8.9 trillion, or 2.4% over the next decade. Read also: BOE losses on QE over three times greater than Fed, analyst says Congressional Budget Office says debt held by the public at the end of 2034 would total US$50.7 trillion, or 122% of GDP. reuters

thursday june 20, 2024 24 The E dge C E O m o rning brief world (June 19): British inflation fell back to the Bank of England’s (BOE) 2% target for the first time in almost three years, a milestone that likely comes too late to improve the political fortunes of Prime Minister Rishi Sunak before the looming election. Consumer price growth eased in May from 2.3% the month before, the Office for National Statistics (ONS) said on Wednesday. Those figures should keep the central bank on track to cut interest rates in the coming months, even though BOE officials have signalled they are unlikely to announce a policy shift on Thursday due to the election campaign. The slowdown in price growth has allowed Sunak to declare victory over a brutal cost-of-living squeeze, after inflation reached double digits in 2022 because of Russia’s war in Ukraine and the end of Covid-19 pandemic restrictions. The decrease is unlikely to be enough to help UK inflation falls to 2% goal for first time in three years (June 19): Asia is on course to reach pre-pandemic levels of tourism in the first half of next year, according to Fitch Ratings, citing weaker currencies, government efforts to lure visitors, and a jump in outbound travel from China. The Asia and Pacific region had a slower recovery from the pandemic than the rest of the world, the ratings company said in a report, citing data showing the Middle East, Africa, Europe and the Americas have already either exceeded or are on course to beat pre-Covid tourist arrivals in the first half of this year. Thailand this week said foreign tourist arrivals surged 37% to 16.2 million in the year through June 16, with Chinese accounting for 3.2 million of those visitors. Both companies and analysts have said the rebound in travel will help both profFitch sees Asian tourism rebounding to pre-Covid levels by 2025 by Justina T Lee & Pathom Sangwongwanich Bloomberg by Tom Rees & Irina Anghel Bloomberg Read also: Rising UK homelessness keeps housing crunch in front of voters Sunak policies drive up cost of eating out and drinking in UK its and regional economies, particularly in tourist destinations in Southeast Asia. “This year’s expected leap in visitors from abroad could power a double-barrelled growth boost not only to Southeast Asia’s tourism industry but also to its broader economy,” Bloomberg Intelligence analyst Sufianti said in a May 28 note. “Thailand could get the biggest boost given its notable income from foreign visitor receipts.” That’s leading some consumer companies to expand. CP All PCL, which operates of 7-Eleven convenience stores in Thailand, plans to open about 700 new stores in the country and to further expand in Cambodia and Laos, it said in May. Similarly, PT Map Boga Adiperkasa — which operates Starbucks in Indonesia — should benefit from the travel boom, Mirae Asset Sekuritas Indonesia economist and head of research Rully Wisnubroto said in Jakarta on June 4. Singapore earlier this year burnished its image by being the only Southeast Asian nation to host Taylor Swift’s Eras Tour concerts, to the annoyance of some other parts of the region. Swiftmania led economists to upgrade their growth estimates for the city, and drove United Overseas Bank Ltd credit card fees to a record high, while Las Vegas Sands Corp plans more space for live entertainment to complement its casino resort in the city. “Entertainment is a very important part of the mix,” Las Vegas Sands chief executive officer Rob Goldstein said at an investor conference in late May. “We’re proposing to build a very big part of that into our new building in Singapore.” the ruling Conservative Party, which polls show is heading for a defeat to Labour in the July 4 election. BOE policymakers may appreciate the extra month to weigh lingering signs of sticky prices beyond the headline rate. Inflation in the services sector remained higher than expected, registering a 5.7% gain last month after a reading of 5.9% in April. Economists had expected a sharper decline to 5.5%. Forecasters suggest that the headline inflation rate will pick up to 2.4% by year end. reuters reuters

thursday june 20, 2024 25 The E dge C E O m o rning brief world (June 18): HSBC Holdings plc’s Swiss private bank failed to carry out adequate checks on ‘high-risk’ accounts owned by politically exposed persons designed to prevent money laundering, Switzerland’s banking regulator said. HSBC Private Bank (Suisse) SA operated two high-risk business relationships, where it failed to carry out an adequate check of either the origins, purpose or background of the assets involved, Finma said in a statement on Tuesday. The suspect transactions involving more than US$300 million (RM1.41 billion) moved between Lebanon and Switzerland were carried out between 2002 and 2015, according to Finma. “We acknowledge the matters raised by Finma, which are historic,” HSBC said in HSBC’s Swiss private bank violated money laundering rules, regulator says (June 19): Euro-area members must start reducing debt immediately in the face of enormous long-term fiscal risks from ageing populations, defence spending and climate change, the European Central Bank (ECB) cautioned. “These developments will be challenging enough in isolation, and countries will face all of them simultaneously,” it said Wednesday in an article. “Consequently, action needs to be taken today — especially in high-debt countries” grappling with elevated interest rates. According to the ECB, budgetary efforts required in response to these specific challenges could amount to at least 5% of gross domestic product (GDP). “The necessary fiscal adjustment is large by historical standards, but not without precedent,” it said. The warning comes at a time of heightened concern about the sustainability of public finances in the 20-nation bloc — not least in France, where the shock announcement of snap elections has raised doubts about fiscal consolidation, triggering market turmoil. On Wednesday, the European Commission reprimanded France, Italy and several other European Union (EU) nations for running budget shortfalls above the bloc’s 3% limit. “Fiscal-sustainability challenges are low in all EU member-states in the short term, while being elevated in the medium and long term in several countries, due to projected high and/or increasing debt ratios in some member-states,” the commission said. MILAN (June 19): Ferrari’s first electric car will cost at least €500,000 (RM2.5 million), a source familiar with the matter told Reuters, as the luxury automaker prepares to open a plant that will make the model — and could boost group production by up to a third. The Italian brand, famed for its roaring petrol engines, has said it will launch an electric car late next year, and the planned price shows its confidence that ultra-wealthy drivers are ready for it, even as mass-market rivals are slashing electrical vehicle (EV) prices amid faltering demand. The price tag, which doesn’t include features and personal touches that typically add 15-20%, is well above the average sale price of around €350,000, including extras, for a Ferrari in the first quarter of this year, and many rival luxury EVs. In a less exclusive segment, Porsche’s electric Taycan starts at around €100,000. Read also: Boeing CEO blasted in US Senate hearing while apologising for safety woes Eurozone nations’ public finances are major risk, ECB warns Ferrari’s first electric car to cost over US$500,000 by Mark Schroers Bloomberg by Giulio Piovaccari Reuters by Hugo Miller Bloomberg a statement. The bank said it takes its anti-money laundering obligations “very seriously, including complying with all laws and regulations in every market we operate in”. The bank said it plans to appeal against the decision, and therefore won’t comment further. Finma did not name the individuals involved, but ordered HSBC to conduct a review, with regard to anti-money laundering aspects, of all the current high-risk business relationships and business relationships with politically exposed persons. The bank won’t be allowed to enter into any new business relationships with politically exposed persons until such time as completion of the reviews has been confirmed by an outside auditor, according to Finma.

thursday june 20, 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) Top Glove Corp Bhd 164.90 -0.030 1.140 26.67 9,130.8 JAKS Resources Bhd 124.71 0.010 0.190 2.70 484.6 JCY International Bhd 113.54 -0.005 0.825 275.00 1,754.0 MyEG Services Bhd 103.50 -0.010 1.060 30.06 7,906.6 Dagang NeXchange Bhd 90.25 -0.005 0.495 23.75 1,718.6 ATA IMS Bhd 71.83 -0.065 0.450 47.54 541.3 Velesto Energy Bhd 67.08 -0.005 0.260 13.04 2,136.1 Ingenieur Gudang Bhd 63.06 0.000 0.070 -46.15 106.2 WCT Holdings Bhd 59.72 0.020 0.775 56.57 1,098.4 Divfex Bhd 50.15 0.005 0.190 52.00 141.7 Kawan Renergy Bhd 48.19 0.160 0.970 — 533.5 SNS Network Technology Bhd 47.02 -0.010 0.825 251.06 1,330.5 Jati Tinggi Group Bhd 46.04 0.045 0.615 127.78 241.0 Aimflex Bhd 42.13 -0.005 0.180 9.090 265.1 Hubline Bhd 37.85 0.000 0.060 50.00 257.4 KTI Landmark Bhd 35.01 -0.015 0.285 — 228.0 Salcon Bhd 33.05 -0.010 0.415 45.61 420.2 K-One Technology Bhd 32.66 -0.025 0.265 76.67 220.5 Perdana Petroleum Bhd 32.39 -0.010 0.375 87.50 833.6 Techbond Group Bhd 31.89 0.000 0.520 28.40 285.6 Data as compiled on June 19, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Borneo Oil Bhd 0.010 100.00 5633.6 -33.33 119.9 Focus Dynamics Group Bhd 0.015 50.00 602.8 0.00 95.6 XOX BHD 0.015 50.00 2245.7 0.00 77.9 China Ouhua Winery Holdings 0.050 42.86 10816.1 -9.09 33.4 ZEN Tech International Bhd 0.020 33.33 286.1 0.00 62.2 G3 Global Bhd 0.030 20.00 809.5 20.00 113.2 Saudee Group Bhd 0.030 20.00 1068.2 20.00 46.9 Kawan Renergy Bhd 0.970 19.75 48194.2 — 533.5 Thriven Global Bhd 0.155 19.23 10447.5 47.62 84.8 Aldrich Resources Bhd 0.035 16.67 295.1 -12.50 39.0 SMTrack Bhd 0.040 14.29 19195.7 -20.00 52.0 TFP Solutions Bhd 0.040 14.29 1001.4 -27.27 23.4 Toyo Ventures Holdings Bhd 1.480 11.28 1930.3 12.12 196.69 Farm Price Holdings Bhd 0.650 11.11 13959.9 — 292.5 Jadi Imaging Holdings Bhd 0.055 10.00 1880.5 -21.43 77.0 Sapura Resources Bhd 0.440 10.00 30.2 17.33 61.4 Eden Inc Bhd 0.170 9.68 12821.3 -22.73 85.9 Country View Bhd 1.530 9.29 31.2 33.04 153.0 Ecobuilt Holdings Bhd 0.065 8.33 0.1 -27.78 27.4 Rekatech Capital Bhd 0.065 8.33 604.1 0.00 38.5 Data as compiled on June 19, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Hong Seng Consolidated Bhd 0.010 -33.33 2,411.4 -60.00 51.1 Metronic Global Bhd 0.020 -20.00 6,564.7 33.33 30.6 Mercury Industries BHD 1.000 -13.79 223.8 6.38 64.3 Mlabs Systems Bhd 0.190 -13.64 2,295.0 -36.67 13.8 ATA IMS Bhd 0.450 -12.62 71,833.8 47.54 541.3 AppAsia Bhd 0.140 -12.50 8,538.8 47.37 157.1 Pekat Group Bhd 0.835 -11.64 7,519.0 94.19 538.6 Barakah Offshore Petroleum 0.040 -11.11 4,599.7 14.29 40.12 Green Packet Bhd 0.040 -11.11 820.1 0.00 79.8 Euro Holdings Bhd 0.090 -10.00 9,605.8 5.88 119.5 ASTEEL Group Bhd 0.095 -9.52 2,684.8 -9.52 46.1 Quality Concrete Holdings 1.150 -9.45 4.4 4.55 66.7 PUC BHD 0.050 -9.09 5,378.1 25.00 123.4 SHL Consolidated Bhd 2.540 -8.63 59.3 23.90 615.0 K-One Technology Bhd 0.265 -8.62 32,661.4 76.67 220.5 Digistar Corp Bhd 0.055 -8.33 174.3 -8.33 26.1 ECM Libra Group Bhd 0.220 -8.33 11.3 15.79 109.0 Johan Holdings Bhd 0.055 -8.33 180.1 -15.38 64.2 Gagasan Nadi Cergas Bhd 0.280 -8.20 13.0 -3.45 210.8 JAG Bhd 0.350 -7.90 15,588.4 16.67 215.2 Data as compiled on June 19, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Dutch Lady Milk Industries 36.860 -0.740 57.1 59.15 2,359.0 Petronas Dagangan Bhd 17.380 -0.400 555.7 -20.42 17,266.2 SHL Consolidated Bhd 2.540 -0.240 59.3 23.90 615.0 Chin Hin Group Bhd 3.130 -0.210 1474.7 77.34 11,076.5 KESM Industries Bhd 7.420 -0.200 73.6 4.95 319.2 Malaysian Pacific Industries 39.700 -0.200 234.4 40.78 7,897.5 Allianz Malaysia Bhd 21.880 -0.180 9.3 18.66 3894.0 Ge-Shen Corp Bhd 3.050 -0.170 129.1 162.93 383.3 ViTrox Corp Bhd 4.400 -0.170 3938.3 20.71 8324.1 Chin Hin Group Property Bhd 2.280 -0.160 963.5 173.05 1505.7 Mercury Industries Bhd 1.000 -0.160 223.8 6.38 64.3 Tenaga Nasional Bhd 13.860 -0.160 11160.5 38.05 80,212.4 NPC Resources BHD 1.800 -0.150 3.0 0.00 204.1 Unisem M Bhd 4.220 -0.150 551.3 27.49 6807.19 Guan Chong Bhd 3.710 -0.140 4,465.3 102.73 4,357.5 Aurelius Technologies Bhd 3.490 -0.130 1,006.7 34.23 1,512.8 Hartalega Holdings Bhd 3.430 -0.120 6,203.0 27.04 11,707.5 PIE Industrial BHD 6.630 -0.120 1,422.4 104.66 2,546.2 Quality Concrete Holdings 1.150 -0.120 4.4 4.55 66.7 Apollo Food Holdings Bhd 6.690 -0.110 3.2 16.15 535.2 Data as compiled on June 19, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Panasonic Manufacturing 20.260 0.180 18.5 12.56 1,230.7 HeiTech Padu Bhd 2.100 0.160 2810.2 138.64 212.6 Kawan Renergy Bhd 0.970 0.160 48194.2 — 533.5 PGF Capital Bhd 2.330 0.160 1482.8 70.07 422.4 Toyo Ventures Holdings Bhd 1.480 0.150 1930.3 12.12 196.7 Country View Bhd 1.530 0.130 31.2 33.04 153.0 MBM Resources Bhd 5.340 0.110 697.6 25.94 2,087.3 MSM Malaysia Holdings Bhd 2.360 0.100 2662.7 46.58 1659.0 Kuala Lumpur Kepong Bhd 20.300 0.080 1695.2 -6.97 22,257.0 Sunway Construction Group 3.950 0.080 3514.6 103.61 5,093.0 YTL Corp Bhd 3.580 0.080 12439.9 89.42 39,388.4 Farm Price Holdings Bhd 0.650 0.065 13959.9 — 292.5 Mesiniaga Bhd 1.550 0.060 0.2 12.32 93.6 QL Resources Bhd 6.420 0.060 3633.7 12.43 15624.1 Magni-Tech Industries Bhd 2.360 0.050 364.8 26.20 1022.9 Jati Tinggi Group Bhd 0.615 0.045 46037.0 127.78 241.0 Icon Offshore Bhd 1.160 0.040 3095.3 98.29 722.2 LPI Capital Bhd 12.300 0.040 54.9 2.84 4900.1 Notion VTEC Bhd 2.000 0.040 20860.2 525.0 1038.2 Sapura Resources Bhd 0.440 0.040 30.2 17.33 61.4 Data as compiled on June 19, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,834.86 56.76 0.15 S&P 500 * 5,487.03 13.80 0.25 NASDAQ 100 * 19,908.86 6.11 0.03 FTSE 100 * 8,191.29 10.31 0.13 AUSTRALIA 7,769.72 -8.36 -0.11 CHINA 3,018.05 -12.20 -0.40 HONG KONG 18,430.39 514.84 2.87 INDIA 77,337.59 36.45 0.05 INDONESIA 6,726.92 -7.91 -0.12 JAPAN 38,570.76 88.65 0.23 KOREA 2,797.33 33.41 1.21 PHILIPPINES 6,366.03 -2.77 -0.04 SINGAPORE 3,304.00 2.22 0.07 TAIWAN 23,209.54 452.11 1.99 THAILAND 1,303.82 6.41 0.49 VIETNAM 1,279.79 0.29 0.02 Data as compiled on June 19, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,92037.00 OIL US$ 85.330.00 RM/USD 4.7065 RM/SGD 3.4842 RM/AUD 3.1390 RM/GBP 5.9916 RM/EUR 5.0534