The EDGE - 27 October 2023

HOME: E-invoicing implementation would be helpful if GST reintroduced — IRB CEO p4 Malaysia’s PPI back to positive territory for first time since January, with marginal 0.2% uptick in September p5 Loke: Development of open payment system for Prasarana’s rapid rail network to begin in March 2024 p10 WORLD: US-China ties quietly improving even as global turmoil surges p16 Big Tech’s disappointing earnings erase US$200 bil in value p18 CEOMorningBrief FRIDAY, OCTOBER 27, 2023 ISSUE 660/2023 theedgemalaysia.com US’ 3Q ECONOMIC GROWTH SEEN FASTEST IN NEARLY TWO YEARS p15 Wealth is… leaving a secure future as your legacy. If your child’s education fund is what you’re looking for, talk to us. With more than 140 years of global financial services expertise and close to 30 years of local experience, we’ve been helping discerning investors like yourself in Malaysia achieve their long-term retirement goals. Reach out to our Financial Consultants or Bank Distributors for more info. For All It’s WorthSM Conventional and Shariah-compliant solutions: Unit Trust | Private Retirement Schemes www.principal.com.my Disclaimer: The information contained herein is intended for general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. The information contained herein does not consider an investor's investment objectives, particular needs, or financial situation. Investors should understand the risks involved, compare and consider the fees, charges and costs involved, make their own risk assessment and seek professional advice, where necessary. This material has not been reviewed by the Securities Commission of Malaysia. Report on Page 3. Telcos’ subscription to equity in DNB faces delay, but on track to be concluded by year end — Fahmi Report on Page 2. BERNAMA Al-Sultan Abdullah expresses his gratitude to Malay rulers

FRIDAY OCTOBER 27, 2023 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to : [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] Al-Sultan Abdullah expresses his gratitude to Malay rulers KUALA LUMPUR (Oct 26): Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah expressed his gratitude for the support of the Malay rulers on Thursday for enabling the country to overcome various events and challenges since 2019. Al-Sultan Abdullah, who will end his tenure as the nation’s 16th Agong on Jan 30 next year, said despite the many challenges, the Conference of Rulers had always helped to find the best solutions for the well-being of the people. “Whether political turmoil or the Covid-19 pandemic, throughout my reign, I have always upheld the oath I took with utmost sincerity, which is to govern Malaysia fairly and in accordance with the provisions of the Federal Constitution. “I am also grateful for the willingness of the Malay rulers to come to Istana Negara to discuss and seek a solution together for the good of the country and the people,” His Majesty said on the second day of the 262nd edition of the Conference of Rulers’ meeting at Istana Negara on Thursday. Sultan of Johor Sultan Ibrahim Almarhum Sultan Iskandar presided over the two-day meeting, which began on Wednesday. The Agong said that the Malay rulers’ full support throughout his reign had protected the country and its people from avoiding uncertainties and chaos. “The institution of the Yang di-Pertuan Agong is not merely symbolic. It is the protector of democratic practices, the pillar of our country’s peace, and the pulse of our national unity. “It represents the spirit and soul of the country’s final instrument for checks and Bernama HOME balances capable of using discretion to reach a decision when all other methods have failed,” Al-Sultan Abdullah said. In Al-Sultan Abdullah’s view, the Malay rulers collectively act as protectors that defend the people, a bastion for peace and prosperity in the country. His Majesty also reminisced about some events throughout his five-year reign, including the Covid-19 pandemic that had impacted the national economy and the livelihood of Malaysians, resulting in the Proclamation of Emergency and the implementation of the Movement Control Order. Al-Sultan Abdullah goes down in history as the only King to have had four prime ministers, each with their respective Cabinets, during his five-year reign, and helped Malaysia navigate through a hung Parliament for the first time in the country’s modern history, after no coalition won a clear majority in the 15th general election. “I gave the Members of Parliament the opportunity to come to an understanding based on the principle of unity for the future of our country,” the King said. Al-Sultan Abdullah also expresed his gratitude to Deputy Yang di-Pertuan Agong Sultan Nazrin Shah of Perak for his willingness in carrying out the duties of the Yang di-Pertuan Agong during his absence in the country or due to health factors. “I am indeed lucky and grateful, as after 44 years as Tengku Mahkota Pahang, and after 15 days of my being installed as the sultan of Pahang, I was given the opportunity by the grace of Allah SWT to ascend to the position of the Yang di-Pertuan Agong,” he shared. The 263rd (Special) Conference of Rulers will hold its vote to elect the 17th Yang di-Pertuan Agong and his deputy. The institution of the Yang di-Pertuan Agong is not merely symbolic. It is the protector of democratic practices, the pillar of our country’s peace, and the pulse of our national unity.” BERNAMA

FRIDAY OCTOBER 27, 2023 3 THEEDGE CEO MORNING BRIEF HOME Govt expediting talks with telcos to waive charges for migration to 5G, says Fahmi KUALA LUMPUR (Oct 26): The government is expected to seal deals with local mobile network operators (MNOs) for the latter to acquire stakes in Digital Nasional Bhd (DNB) this year, despite the delay caused by the review of “some details”, according to Communications and Digital Minister Fahmi Fadzil. The initial target was to have the MNOs sign the share subscription agreement (SSA) this month. However, it is not known how many MNOs will acquire a stake in DNB, considering a second 5G network is permitted for telecommunications companies (telcos) that are keen to invest. Last month, Fahmi reiterated that all of the five MNOs — CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd — will hold equal stakes in currently government-owned 5G network infrastructure outfit DNB. Speaking to the media after he officiated DNB’s 5G Experience Centre here at The Exchange 106 on Thursday, Fahmi disclosed that the process of reviewing the SSA for stakes in DNB has been completed. “I had hoped that it could be done within the month of October, but there was some slight delay, because there were some details that we had to review. “I’m happy to say that the review is done. So, we can communicate this with the respective MNOs, and then we can, Inshallah (God willing), if everything is okay, we can probably proceed in a short period of time,” Fahmi told a press conference. The minister declined to reveal the specific terms in the SSA that were reviewed by both the federal government and MNOs. “There are some things that have been discussed, and there were some proposals, counter-proposals, some discussions, some analysis that needed to be done, some assessments from the technical point of view, and from the financial aspect. “And these things do take a bit of time, but I am happy to say that we are almost ready to announce a date for signing. I just need to have a quick word with all of the MNOs very soon,” he said. Speculation is rife that some local MNOs are not interested in taking a stake in DNB shares, while waiting to participate in rolling out the second 5G network, dubbed Entity B. Prime Minister Datuk Seri Anwar Ibrahim reportedly said Huawei is slated to play a major role in the second 5G network. It Telcos’ subscription to equity in DNB faces delay, but on track to be concluded by year end — Fahmi is not clear how the Chinese network infrastructure provider was selected, as the government did not seem to have conducted an open tender process for the matter. Different opinions on second 5G network Fahmi acknowledged that there were differences in opinions among the Ministry of Finance (MOF), MNOs, DNB, and the Malaysian Communications and Multimedia Commission (MCMC). “I’m very thankful, to the ministry, MCMC, DNB, the MNOs and MOF, for helping and facilitating, ensuring that the environment is conducive for dialogue, for discussions,” he said. “[There were] some disagreements, but ultimately a way forward for the nation. So, that’s what I can comment on,” he added. In May, the government announced that it will allow a second 5G network to operate from next year, on the grounds that this would help avoid single-point failure when only one entity handles the country’s 5G infrastructure. The single wholesale network (SWN) adopted by DNB aims at expediting the roll-out of the 5G network, and to also reduce the capital expenditure burden on the MNOs as they are not required to invest in 5G infrastructure. The cost savings will be passed to the public in the form of lower tariffs. In short, the retail price for 5G should be lower than 4G service in the SWN model. Nonetheless, with the second network to be rolled out later, this raises uncertainties if the retail tariff of 5G will be lower than 4G eventually. BY ANIS HAZIM & CHESTER TAY theedgemalaysia.com BY ANIS HAZIM & CHESTER TAY theedgemalaysia.com KUALA LUMPUR (Oct 26): Putrajaya is trying to expedite discussions with local mobile network operators (MNOs) to automatically onboard subscribers onto Digital Nasional Bhd (DNB)’s 5G network, said Communications and Digital Minister Fahmi Fadzil. This, he said, is aimed at ensuring that Malaysia’s transition to the 5G network remains accessible to all Malaysians. “We are in some final discussions with the MNOs that are charging [for the migration to 5G services], and to see what we can do to ensure more Malaysians will be able to benefit from the 5G [network] that has been rolled out,” Fahmi told reporters after opening DNB’s 5G Experience Centre at The Exchange 106 on Thursday. “That’s why we want to try and expedite some of the discussions. So, if you wait a little bit, inshallah (God willing), we will have some good news,” he added. Read the full story The current’s biggest MNOs like CelcomDigi Bhd and Maxis Bhd are charging subscribers up to RM20 per month for them to gain access to the 5G network. This is despite the lower wholesale price of 13 sen per gigabyte (GB) they are paying DNB, effectively defeating Putrajaya’s aim of rolling out the new-generation internet with better quality connection at a cheaper price. In his speech at the launching ceremony, Fahmi called on the MNOs to have a dialogue with him on ways to waive the additional charges for the 5G upgrade. “Although the transition to 5G may have challenges and extra costs temporarily, it is the wish of the prime minister, the minister of investment, trade and industry, and myself, and my wife, that we have a discussion to consider certain options. “Because I think it is imperative for the more than seven million devices ready to use 5G, to be able to use that extensively, I think it is in DNB’s interest, it is in the MNOs’ interest, it is in the nation’s interest,” he said.

FRIDAY OCTOBER 27, 2023 4 THEEDGE CEO MORNING BRIEF HOME (Oct 26): Investors are betting Southeast Asia’s central banks will turn more hawkish after Bank Indonesia unexpectedly hiked its key rate last week, with the Philippines seeing the biggest impact to expectations. The spread between the Philippine twoyear bond yield and Bangko Sentral ng Pilipinas key rate widened after BI’s decision, indicating traders are anticipating a greater chance of a rate hike, according to data compiled by Bloomberg. BSP Governor Eli Remolona also flagged the possibility of an increase as soon as Thursday. The chance of a rate hike in Malaysia, where the ringgit remains near the weakest level since 1998, has also increased, as per the data. Rate hike wagers take hold in Southeast Asia after Indonesia’s surprise KUALA LUMPUR (Oct 26): The implementation of the electronic invoicing (e-invoicing) system will be helpful if the government were to consider reintroducing the goods and services tax (GST), according to the Inland Revenue Board’s chief executive officer Datuk Mohd Nizom Sairi. “People are talking about the reintroduction of GST, and if it happens, you don’t have to do anything further. It [e-invoicing] is actually something that can cater to the GST system,” he told reporters after Grant Thornton Malaysia’s seminar on the 2024 budget on Thursday. While there are minimal additional costs associated with the e-invoicing implementation, as businesses need to invest time and resources to adapt their digital infrastructure to align with tax authorities’ requirements, e-invoicing will play a pivotal role in helping the government reach its ambitious 2024 tax collection target of RM185 billion, said Mohd Nizom. It was reported last week that Ayer Hitam Member of Parliament Wee Ka Siong asked in Dewan Rakyat about introducing e-invoicing as part of the GST implementation. “Just bring back the GST; why do we want to spend more on e-invoices when e-invoices are a component of GST? Through GST, everything is more clear and transparent. The problem can be solved with GST,” he was quoted as saying. In Asean, Malaysia is among the few nations that do not impose GST, besides Brunei and Myanmar. Indonesians have been paying GST for 39 years since 1984. Thailand imposed value added tax (VAT) in 1992 and Singapore in 1994. Both Vietnam and Cambodia imposed the broad-based consumption tax in 1999 and the Philippines in 1988. Malaysia replaced the sales and service tax (SST) with GST in April 2015, but it was then scrapped in favour of bringing back the sales and services tax (SST) in September 2018, when the Pakatan Harapan government came into power. Two-month deferment of e-invoicing implementation for companies with annual turnover exceeding RM100 mil is too short On the other hand, Mohd Nizom also acknowledged that the government’s decision to postpone the implementation of e-invoicing for taxpayers with an annual turnover of more than RM100 million by only two months, may not seem sufficient to ensure full compliance. “Two months is short. However, we are confident that both the IRB and the businesses can meet the upcoming deadline. We are not yet considering an extension of the deadline. We are in constant discussion with the businesses to explain the technical complexities and what they should do. “I understand that businesses are a little concerned, but we assure them that we can make it happen,” he said. Mohd Nizom was responding to KPMG Malaysia’s report last week, which said the two-month deferE-invoicing implementation would be helpful if GST reintroduced — IRB CEO BY SYAFIQAH SALIM theedgemalaysia.com BY MATTHEW BURGESS Bloomberg ment from June 1, 2024, to Aug 1, 2024, may prove too short for full compliance, as businesses need more time to assess their readiness to adopt e-invoicing and the resources, as well as the costs involved. Meanwhile, Grant Thornton Malaysia Tax Advisory & Compliance senior executive director Chow Chee Yen clarified that the compliance obligations are from the perspective of the issuance of e-invoices. “In other words, taxpayers are required to issue and submit e-invoices for IRB’s validation, according to the implementation timeline. Any invoice created and issued on or after the implementation date would be required to be an e-invoice. Invoices issued prior to the e-invoicing implementation date applicable to the taxpayers, are not required to be converted into e-invoices,” he said. The timeline for mandatory e-invoicing implementation for taxpayers are as follows: • Annual turnover or revenue exceeding RM100 million, beginning Aug 1, 2024; • Annual turnover or revenue of more than RM50 million to RM100 million, commencing on Jan 1, 2025; • Annual turnover or revenue of more than RM25 million to RM50 million, starting on Jan 1, 2025; • All other taxpayers: Mandatory e-invoicing adoption is required by July 1, 2025. During the tabling of Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim said the use of the tax identification number will be expanded to support the implementation of e-invoicing, to further broaden the taxpayer net (base), following voluntary tax compliance, which in turn reduces revenue leakage. “Each central bank has its own playbook,” said Frances Cheung, a rates strategist at Oversea-Chinese Banking Corp. “That said, BI’s policy action precisely reflects the pressure from higher US dollar rates on the monetary decision making in Asia.” A tighter monetary policy may be one way to support currencies that have slumped to multiyear lows this week, as it would help bridge their interest-rate gap with the US, where bets on higher-forlonger rates have pushed up yields. However, headwinds from China’s slowdown would remain as exports continue to suffer and limit the amount of dollars in those markets. CONTINUES ON PAGE 5

FRIDAY OCTOBER 27, 2023 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): Malaysia’s Producer Price Index (PPI), which measures the prices of goods at the factory gates, returned to positive territory for the first time this year since January, with a marginal year-on-year (y-o-y) growth of 0.2% in September, compared to the 2.2% y-o-y contraction recorded in August, the Department of Statistics Malaysia (DOSM) reported on Thursday. According to DOSM, this is the first increase after seven consecutive months of decline recorded from February, due to the higher base effect and higher prices of primary commodities. Notably, the marginal increase was contributed by all sectors except for the manufacturing sector, DOSM data showed. The agriculture, forestry and fishing sector increased by 3.2% (August: -1%) due to the increase in animal production (5.7%) and growth of perennial crops (3.3%). At the same time, the mining sector rose 6.9% after recording a negative 3.8% in the previous month, supported by higher extraction of crude petroleum (8.1%) and natural gas (2.7%). The two utility sectors, meanwhile, recorded marginal increases, with the electricity and gas supply sector climbing 0.5% and the water supply rising by 0.9%. Meanwhile, the manufacturing sector remained negative for five consecutive months, recording a negative 0.8% (August: -2.3%), affected by manufacturing of coke and reMalaysia’s PPI back to positive territory for first time since January, with marginal 0.2% uptick in September fined petroleum products (-7.1%) and food products (-5.3%). On a month-to-month (m-o-m) basis, Malaysia’s PPI went up by 0.9% in September 2023, which was also an improvement compared with the 0.3% in August and 0.2% in July, pointing to three months of consecutive growth from June’s 0.3% contraction. September’s m-o-m performance was on the back of the growth in mining (5.6%), electricity and gas supply (0.4%), as well as the manufacturing sector, which increased by a slight 0.8% after recording negative changes since May. However, this was offset by declines in agriculture, forestry and fishing, and the water supply sectors. In comparison with some countries, Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that the US recorded a 2.2% y-o-y growth in September against 2% in August, making it the highest growth since April. Japan’s PPI also rose by 2%, slowing from 3.3% in the previous month. Meanwhile, China’s producer prices continued to decline by 2.5% from a drop of 3% in the previous month. Similarly, India’s producer inflation registered a smaller contraction of 0.3%, compared with 0.5% in August. “Overall, Malaysia’s PPI decreased by 2.1% in the first nine months of 2023 as compared to last year, due to the volatility of Malaysia’s main commodities, particularly palm oil products and crude oil,” Mohd Uzir said. “Looking ahead 12 months, oil prices are projected to average US$98 (RM462.56) per barrel after the Opec countries extended their voluntary supply cut of crude oil. Meanwhile, according to the Commodity Research Bureau (CRB) Index, overall commodity prices index increased from around 290 in June to 320 in September 2023, mainly driven by the increase in the price of crude oil. Other factors, such as the shortage of agricultural supplies due to the Russia-Ukraine war and adverse weather patterns, are expected to keep price of commodities unstable in 2023,” he added. BY EMIR ZAINUL theedgemalaysia.com Index (2010=100) Percentage change (%) Sources: Producer Price Index (2010=100) Local Production, Department of Statistics Malaysia (DOSM) PPI Sept 2022 - Sept 2023 Index Year-on-year Month-on-month 0.0 112.0 116.0 120.0 8.0- 4.0- 0.0 4.0 8.0 Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept 2022 2023 0.0 -2.2 0.9 0.2 Rate hike bets are also gaining traction in Southeast Asia as other measures by the region’s central banks fail to lure foreign funds. BI sought to tighten liquidity by selling bills before its shock quarter-point hike last week, and economists aren’t ruling out more increases as the rupiah stays near the lowest since 2020. Traders are also pricing a roughly one in five chance Bank Negara Malaysia will hike interest rates, which is marginally higher than expectations prior to the BI meeting, due to the political sensitivity of a weak ringgit and falling reserves, said Philip McNicholas, Asia sovereign strategist at Robeco Group in Singapore. The case for a rate hike to defend the currency is growing in the Philippines after the nation’s forex reserves dropped to US$98.7 billion (RM471.8 billion) last month, the lowest since December, as authorities intervened to stop the peso from weakening past 57 per dollar. The move may also help ease rising inflation. “If the data says inflation will go up very significantly and there’s a risk of affecting inflationary expectations, then we may go for an off-cycle hike as early as Thursday,” BSP’s Remolona said. The central bank earlier flagged risks of missing its 2%-4% inflation goal for a third year in 2024 amid food supply constraints and higher power and transport costs. “All the central banks are likely to be watching food prices closely given the potential adverse impact of El Nino on crop production, hence they’ll likely continue to flag upside risks,” Robeco’s McNicholas said. FROM PAGE 4

FRIDAY OCTOBER 27, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): Cypark Resources Bhd’s Datuk Daud Ahmad has retired and will not continue as a member of the board of directors, according to a filing with Bursa Malaysia on Thursday. However, when contacted, the company’s spokesperson said Daud still remains as the group chief executive officer. Daud did not respond at press time when contacted. The shareholders of Cypark voted not to re-elect Daud to continue as a member of the board of directors at the company’s 18th annual general meeting (AGM) on Thursday. In the disclosure, Cypark noted that Resolutions 1 to 14 were passed by the shareholders except for Resolution 7, which was not put to vote, and Resolution 11, which was not passed at the AGM. Resolution 11 referred to the re-election of Daud, who was due to retire, into Cypark’s Daud Ahmad retires as board member, still group CEO KUALA LUMPUR (Oct 26): Police arrested four more individuals to help their investigation into a money laundering case involving an airline company. Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf said they comprised two men and two women, all locals aged between 30 and 62. He said three of them were arrested after giving their statements at the CCID headquarters on Jalan Tun Razak between 1pm and 1.30pm, while the fourth person was picked up in Bukit Tunku. The four arrested comprised a treasury assistant, a finance assistant, a research and development manager and a lawyer of a company. On Oct 17, police arrested the co-founder of a local airline, who has a “Datuk” title, along with his wife and son at their residence in Shah Alam to facilitate investigations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). Following that another businessman was arrested. All of them have been released on police bail. Read also: Mavcom orders MYAirline to submit written representation by Oct 27 KUALA LUMPUR (Oct 26): Citaglobal Bhd has acquired a 30% stake in submarine cable systems company iFACTORS Sdn Bhd for RM25.2 million, the infrastructure group said in a statement on Thursday. This confirms a report by The Edge that the group was venturing into submarine cable laying. The stake acquisition comes with a twoyear profit guarantee of RM21 million, and to date, iFACTORS has an order book of RM528 million, the group added. Meanwhile, the group also highlighted Four more individuals detained in connection with MYAirline investigations — Police Citaglobal acquires 30% stake in iFACTORS for RM25 mil Bernama BY SULHI KHALID theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com the company’s board of directors. The filing showed that 76.15% of the shareholders voted against it, while 23.85% voted for the resolution. It is worth noting that Daud, who is also a co-founder of the renewable energy and solid waste management company, recently re-emerged as a substantial shareholder only days after his status ceased. According to a bourse filing, Daud acquired 12 million shares or a 1.5% stake in Cypark on Sept 22 via the company’s employees’ share option scheme, which raised his stake to 6.31%. The company said Daud forked out RM4.56 million to exercise the share options. For the first quarter ended July 31, 2023 (1QFY2024), Cypark made a net profit of RM305,000 against revenue of RM36.52 million. The group said that revenue came mostly from its renewable energy (RE) and waste management and waste-to-energy (WTE) divisions, where income was recurring in nature. The RE division delivered the bulk of revenue for the group, amounting to RM21.7 million for 1QFY2024, while the waste management and WTE division contributed RM10 million in revenue for the quarter. The remaining revenue came from the construction and engineering division, as well as the green tech and environmental services segment. MYAIRLINE that it has an option to purchase another 21% stake in iFACTORS once the profit guarantee of RM21 million has been met. “The board is confident that this venture into the submarine cable business will enable the group to diversify its revenue and earnings streams, enhancing our profitability and creating value for our shareholders,” said Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria. According to the group, iFACTORS has also recently secured a US$60 million (RM287 million) contract for the construction of a subsea fibre optic cable system between Tawau, Malaysia, and Parang, a municipality in the Philippines.

FRIDAY OCTOBER 27, 2023 7 THEEDGE CEO MORNING BRIEF HOME 1MDB-Tanore trial vacated for the day as defence needs more time to gather facts of case BY TARANI PALANI theedgemalaysia.com nesses that they had to comb through to complete the factual matrix of the case. “We have produced this document which is a summary of what we think is relevant for Yang Arif (Your Honour) to decide. We have noticed [that] apart from Datuk Seri Ramli Mohamed Yoosuf Read the full story Former prime minister Datuk Seri Najib Razak (centre) seen at the Kuala Lumpur Court Complex for his 1MDB-Tanore trial on Thursday, Oct 26, 2023. Police: Another individual linked to 1MDB assets identified Bernama ZAHID IZZANI/THE EDGE ual has been identified as owning 1MDB funds,” he said in a special media conference on Thursday. Elaborating further, Ramli said the investigation into Ng is still ongoing with a focus on recovering 1MDB assets. KUALA LUMPUR (Oct 26): Police have identified another individual abroad who has been linked with 1Malaysia Development Berhad (1MDB) assets worth millions of ringgit. Bukit Aman Commercial CID director Datuk Seri Ramli Mohamed Yoosuf said this was a positive discovery following the investigation carried out on former Goldman Sachs banker Roger Ng in a bid to secure the return of 1MDB assets locally and overseas. He said the identity of the individual cannot be revealed as it could jeopardise investigations into the case. “The tracking of assets need not necessary involve Roger Ng and on the other hand it was found that another individBERNAMA people like [former 1MDB chief executive officer Mohd] Hazem [Abdul Rahman], [former Bank Negara Malaysia governor Tan Sri Dr] Zeti [Akhtar Aziz], [former Ambank relationship manager] Joanna yu and [Ambank branch manager] R Uma Devi, there are a few more witnesses that we have to go through to complete the factual matrix,” Shafee told the court. He then asked the court to vacate the trial date on Thursday, so the defence can complete their submissions. Deputy public prosecutor Kamal Baharin Omar told the court that the prosecution had no objections to this and added that they also needed time to prepare their further submissions. Shafee then gave two dates in December as suggestions to make up for Thursday’s missed trial date. In reply, trial judge Datuk Collin Lawrence Sequerah said those dates were not suitable and asked parties to come up with alternative dates. The judge added that he had also taken leave in December but was willing to come back to hear the case during the month. Sequerah added that he will deliver his decision on the prosecution’s amendment of charge application and the defence’s objection to the admissibility of banking documents when the trial continues on Nov 6. In this trial, the imprisoned former prime minister faces a total of 25 charges, comprising four charges of abuse of power (predicate charges) of receiving a gratification of approximately RM2.282 billion (RM 2,282,937,678.40) and 21 money laundering charges. KUALA LUMPUR (Oct 26): The 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial has been vacated to give the defence more time to further compile and prepare facts of the case, which is part of their objection to the prosecution’s application to amend three of the 25 charges that former premier Datuk Seri Najib Razak faces. Addressing the court on Thursday, lead defence counsel Tan Sri Muhammad Shafee Abdullah said that despite their best efforts, the defence team still required some time to compile the information regarding the circumstances, events, and facts of the case. He said that his team has prepared a raw document consisting of what they think is relevant to the prosecution’s application. However, the senior lawyer said there were still records of a few more wit-

FRIDAY OCTOBER 27, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): Lotte Chemical Titan Holding Bhd (LCT) narrowed its net loss to RM55.58 million or 2.44 sen per share for the third quarter ended Sept 30, 2023 (3QFY2023) due to reversal of inventory write-down as well as improved margin spreads resulting from lower feedstock costs. In comparison, LCT posted a huge net loss of RM355.5 million or 15.61 sen per share in 3QFY2022. It has been loss making for six straight quarters. Quarterly revenue fell 17.42% to RM1.96 billion in 3QFY2023 from RM2.37 billion a year earlier amid lower average product selling price. LCT’s filing showed the group’s cumulative net loss for the nine months ended Sept 30, 2023 (9MFY2023) widened to RM593.81 million from RM397.43 million a year earlier while cumulative nine-month Lotte Chemical narrows 3Q net loss due to inventory write-down reversal, improved margin KUALA LUMPUR (Oct 26): Nestle (M) Bhd net profit in the third quarter ended Sept 30, 2023 rose 18.7% to RM133.7 million from RM112.65 million on the back of a 5.3% increase in revenue to RM1.77 billion from RM1.68 billion. In a bourse filing on Thursday, the food and drink processing group said the earnings were supported by sales growth and continuous focus on internal efficiencies and saving initiatives to offset the impact of volatile commodity prices and unfavourable exchange rates. It added that the improved net profit was also supported by the absence of the Cukai Makmur (Prosperity Tax) imposed in 2022. Earnings per share rose to 57.02 sen from 48.04 sen. Nestle declared an interim dividend of 70 sen per share to be paid on Dec 14, 2023. For the cumulative nine months ended Sept 30, Nestle’s net profit rose 5% to RM511.77 million from RM487.48 million on the back of a 7% rise in revenue to RM5.37 billion versus RM5.02 billion earlier. In a separate statement, Nestle (M) chief Nestle 3Q net profit up 18% to RM133.7 mil, declares 70 sen dividend BY SURIN MURUGIAH theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com executive officer Juan Aranols (pic) said innovation was significant in the quarter and the group further expanded its presence in the fast-growing Dairy-Free Drinks space with the launch of Nestlé Goodness, with two initial varieties, Oat and Oat & Almond. “The quarter saw intense brand events and activities, with special efforts continuing to educate communities on the importance of healthy eating and active lifestyles. “We continue to invest year in and year out to keep our industrial assets competitive and efficient, while reducing our environmental impact. Once again, this year we will see good progress in our key published measurements,” he said. On its prospects, Aranols said despite facing an uncertain environment, notably the challenges posed by the weakened Malaysian ringgit and ongoing volatility in commodity and energy prices, the company continues to leverage its strong foundation and proven capabilities in providing relevant product offerings that meet the diverse needs of Malaysians. “Alongside this, our ESG agenda ensures that we remain on the frontlines to help shape a greener future for Malaysia,” he said. revenue declined 27.17% to RM5.79 billion from RM7.95 billion. The group attributed the lower earnings for 9MFY2023 mainly due to weakened margin spreads, higher cost of operation and share of losses from its associate company, Lotte Chemical USA Corporation. Commenting on LCT’s financial performance, its president and chief executive officer Park Hyun Chul said the group’s business environment remains challenging, weighed down by slower economic growth in major economies and the new tension in the Middle East. According to him, the group’s management is vigilantly monitoring the geopolitical situation and the aggregate supply and consumption dynamics to navigate LCT through this volatile environment. Park said, Lotte Chemical Indonesia New Ethylene (LINE) project is slated for completion in 2025, and this new manufacturing facility will increase the group’s total production capacity by 65%. “Given that Indonesia is a net importer of petrochemical products, the project is our strategic initiative to capture the anticipated demand for our products in the country. We believe the project will further strengthen LCT’s market presence and materialise its vision to become a top tier petrochemical company in Southeast Asia,” Park added. LOTTECHEM.MY

FRIDAY OCTOBER 27, 2023 9 THEEDGE CEO MORNING BRIEF HOME TOKYO (Oct 27): It is “business as usual” at Perusahaan Otomobil Kedua Sdn Bhd (Perodua), as there has yet to be any announcement on the national carmaker, following the proposed takeover of its largest shareholder UMW Holdings Bhd by Sime Darby Bhd. Commenting on the matter at a press briefing in conjunction with the Tokyo Mobility Show 2023, Perodua executive director of manufacturing and vice-president of Perodua Auto Corp Sdn Bhd Datuk Ahmad Suhaimi Hashim said there is “nothing significant’ for now, as the corporate exercise had not underlined anything with regard to plans for Perodua moving forward. “For us, it is business as usual. Kita tidak ada rasa apa-apa. Because it’s between UMW and Sime Darby, and there’s no clear statement or anything about Perodua. We’ll wait for that,” Ahmad Suhaimi said, when asked about morale within the company when the news broke. Sime Darby, in announcing the RM5.84 billion deal in August, wants to “unlock the potential for revenue growth and operational efficiencies”, according to group chief executive officer Datuk Jeffri Salim Davidson. Sime Darby has exposure to the automotive sector through its regional distribution business of luxury car brands including BMW, Ford, Land Rover and Porsche, with strong presence in China. In Malaysia, Sime Darby has no footprint in the mass market, where Perodua dominates with 40% of new car sales attributed to the Daihatsu-linked compact car manufacturer. However, Sime Darby is a major electric vehicle (EV) retailer, being the exclusive distributor of Chinese maker BYD in Malaysia. Perodua, meanwhile, has yet to venture into EVs, and has only launched the Ativa hybrid on a subscription basis. Electric push? Malaysia has identified the EV segment as an industry focus in the New Industrial Master Plan 2030. Local carmaker Proton has accelerated plans to come out with its own EV by end-2025, from 2027 previously. This is concurrent with plans to open up the industry, namely to lift the current incentives for EV purchases, and the import restrictions on EV models priced BY ADAM AZIZ theedgemalaysia.com Perodua says business as usual amid UMW takeover by Sime Darby below RM100,000 come 2026. In August, The Edge reported that Perodua chief Datuk Seri Zainal Abidin Ahmad had said that the company is “looking at a variety of ways to bring the Malaysian automotive ecosystem up to speed on how to produce the car and deliver it to the mass market”. Perodua has yet to officially announce its EV target, tracking Japanese carmakers who have been slower than their Chinese counterparts in jumping into the market, in preference of the hybrid model until recently. That is changing as concept EVs took the centre stage at Japan’s rebranded annual motor show, the Tokyo Mobility Show 2023 this week, with carmakers such as Honda, Toyota, and Daihatsu all positioning for electrification and carbon neutrality as the central theme of the exhibition that resumed four years after 2019. Interestingly, BYD partnered with Japanese company Toyota some four years back in 2019 to set up a joint venture (JV) to undertake research and development of EVs. While Sime Darby’s tie-up is with BYD presently, it is worth noting that Daihatsu, which owns 25% of Perodua, is also 100%-owned by Toyota Motor Corp. Toyota is also in a JV with UMW for the manufacturing and sale of Toyota models in Malaysia. Top changes Aside from the synergies or operational strategies that could arise from UMW’s takeover of Sime Darby, all eyes are also on Perodua’s corporate structure moving forward, in light of the fragmented shareholding currently as well as previous speculations on the prospects of listing the carmaker to unlock its value. Aside from Daihatsu’s 25% stake and UMW’s 38% in Perodua, the other shareholders are: Permodalan Nasional Bhd (PNB) (10%), Mitsui & Co (7%), and MBM Resources Bhd (20%). Local-listed MBM Resources’ largest shareholders include the Employees Provident Fund (EPF), with a 5.88% stake, Lembaga Tabung Haji (4.81%), and Med-Bumikar Mara Sdn Bhd (50.07%). On Aug 25, UMW announced that its president and group CEO Datuk Seri Ahmad Fuaad Mohd Kenali will be stepping down from his positions next Tuesday (Oct 31) upon tenure expiry. Separately, MBM Resources CEO Muhammad Fateh Teh Abdullah resigned on Aug 24, the day PNB announced it was disposing of its 61.2% stake in UMW to Sime Darby Bhd. Subsequently, MBM Resources appointed its executive directors to take over the CEO role until a new one is appointed, namely Datuk Zulfikri Osman and Low Hin Choong, both of whom are shareholders of Med-Bumikar, thus sparking potential shareholding changes in MBM Resources moving forward. Read also: Perodua keeps record 2023 sales target amid production boost Aside from the synergies or operational strategies that could arise from UMW’s takeover of Sime Darby, all eyes are also on Perodua’s corporate structure moving forward, amid the fragmented shareholding currently as well as previous speculations on the prospects of listing the carmaker to unlock its value. THE EDGE FILE PHOTO

FRIDAY OCTOBER 27, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): The Ministry of Finance (MOF) has set that due diligence visits must be conducted to determine whether a company is eligible for Bumiputera status and not solely based on documentation to ensure the authenticity of the company’s status. Deputy Minister of Finance Datuk Seri Ahmad Maslan said the applicant company must meet the criteria set by the MOF before Bumiputera status is granted as a control measure, thus supporting the policy of prioritising Bumiputera companies. “As of Sept 30, 2023, a total of 108,870 companies are registered with the MOF, including 57,316 sole proprietorships. “Out of the 57,316 registered sole proprietorships, 27,335 companies or 48% have obtained Bumiputera status,” he said during a question and answer session at Dewan Rakyat on Thursday. Ahmad Maslan said the MOF is committed to simplify the company registration process, in line with the government’s procurement principles — public accountability, transparency, value for money, open and fair competition, and fair dealing. Due diligence visits a must to determine Bumi status company’s eligibility — Ahmad Maslan KUALA LUMPUR (Oct 26): The commencement of design and development work for the open payment system serving the rapid rail network under Prasarana Malaysia Bhd is expected to begin in March 2024, according to Transport Minister Anthony Loke. According to Loke, the infrastructure construction will be completed in 11 months, by February 2025, with 50% of the gantries at each station prepared to accept an open payment mode, and by August 2025, all gantries will be ready to accept such payment. “If necessary, this system will continue to be developed by enabling the use of other payment modes such as QR code in the next phase of implementation,” Loke replied to Wong Chen (PH-Subang) during the oral question and answer session in Dewan Rakyat on Thursday. According to Loke, Prasarana has been planning to implement an open payment system starting with its rail service network in the Klang Valley since the beginning of 2023. Prasarana is currently finalising the implementation plan for the Rapid Rail network, which includes the Kelana Jaya LRT Line, the Ampang LRT Line, the Kajang MRT Line, the Putrajaya MRT Line and the Monorail. This new system will introduce MyDebit and credit cards as additional payment options at the gantry in addition to existing payment methods that use Touch ‘n’ Go or tokens, said Loke. For the Keretapi Tanah Melayu Berhad (KTMB) commuter network in the Klang Valley, Loke said an upgrade on the ticketing system or Automatic Fare Collection (AFC) at 57 KTM stations in the Klang Valley is almost complete and ready to go live by mid-November 2023. “The new system is equipped with scanners on the gantries that support open payment methods, including credit cards, debit cards, Touch ‘n’ Go, and QR code via the mobile application KTMB (KITS). The total cost of the project is RM29 million,” Loke added. KUALA LUMPUR (Oct 26): The government does not intend to abolish the windfall profit levy (WPL) on the palm oil industry at the moment, said the Ministry of Finance (MOF). However, the ministry said the government is always open to studying the method of imposing this levy, including the levy rate and profit threshold level to take into account the industry’s survival and the cost of palm oil production from time to time. The MOF said the WPL on the palm oil industry had been implemented since 1999 using the same calculation formula as it is today, except for the levy rate and threshold value which have been amended several times. “The windfall profit threshold value set for the purpose of imposing the WPL on oil palm fruit has been revised several times since this levy was implemented. “The original threshold value was RM2,000, and the latest threshold value is RM3,000 for Peninsular Malaysia, and RM3,500 for Sabah and Sarawak,” said the ministry in a written reply to a question from Datuk Ngeh Koo Ham (Beruas-Pakatan Harapan) on the possibility of abolishing the WPL, published on Parliament’s website on Thursday. The MOF said the original levy rate for Sabah and Sarawak, which was 1.5%, has been adjusted to the levy rate for Peninsular Malaysia at 3%. “Although the levy rate has been equalised, the windfall profit threshold value for Sabah and Sarawak is set higher than for Peninsular Malaysia to take into account the higher production cost of oil palm fruit in Sabah and Sarawak,” it added. Loke: Development of open payment system for Prasarana’s rapid rail network to begin in March 2024 Govt will not abolish palm oil industry’s windfall profit levy — MOF BY CHOY NYEN YIAU theedgemalaysia.com Bernama Bernama BERNAMA

FRIDAY OCTOBER 27, 2023 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): Genomics and biopharmaceutical company Malaysian Genomics Resource Centre Bhd (MGRC) said it has on Wednesday received a notice from an independent non-executive director on his intention to apply for leave of court to commence derivative proceedings in the company’s name against individual directors and management of the company. The name of the independent non-executive director was not disclosed. The derivative action against individual directors and management is for alleged breaches of fiduciary duties in relation to the transactions involving MGRC and its subsidiaries with external parties. Commercial law firm LegalVision defined a derivative action as a claim or proceeding brought by a person on behalf of a company. It aids in circumstancMalaysian Genomics independent director seeks legal action against directors, management for alleged breaches of fiduciary duties KUALA LUMPUR (Oct 26): Berjaya Corp Bhd (BCorp) founder and adviser Tan Sri Vincent Tan has contended that Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor had full knowledge of the alleged defamatory statements he had made against the tycoon. In his reply to Sanusi’s statement of defence in the RM200 million defamation suit filed by Tan, the businessman said that the fact that Sanusi had made these statements citing particulars showed that he had malice when he uttered the statements. Tan and BCorp’s unit Berjaya Land Bhd (BLand) are demanding a public apology and RM200 million in compensation from Sanusi over his remarks on the RM700 million project involving the rehabilitation of the Klang River. Tan, whose lawyers filed the reply at the Shah Alam High Court, said Sanusi had knowledge of the full terms of BLand’s agreement with Landasan Lumayan Berjaya Sdn Bhd (LLBSB) for the Selangor Maritime Gateway project when he made the alleged defamatory statements at the Kedah state election campaign at Dataran Darulaman, Jitra, on Aug 2. “The fact that Sanusi has knowledge of subscription and shareholders’ agreement dated Jan 27, 2021 entered into amongst LLBSB and BLand show that the defendant (Sanusi) has full knowledge and particulars that the oral defamatory statements are slanderous, false and disparaging of the plaintiffs,” the BCorp founder said in his statement of reply. Sanusi, in his statement of defence, said his comments were taken out of context and denied making any defamatory remarks against Tan. The PAS leader raised the defence of fair comment and qualified privilege in making the comments. However, Tan has countered that by saying that Sanusi had failed to take responsible and fair steps to gather and verify the truth and true facts before making the alleged defamatory statements. Tan further said that Sanusi failed to plead at all on what steps he has taken to gather and verify the truth and true facts before making the statements, and that the menteri besar had not cited sources for his information. Vincent Tan: Sanusi knew he was making defamatory statements against me BY TIMOTHY ACHARIAM theedgemalaysia.com theedgemalaysia.com Tan claimed that Sanusi’s alleged defamatory comments implied that he is a corrupt person, corrupt businessman and a crony to Selangor Menteri Besar Datuk Seri Amirudin Shari. Tan claimed that the comments implied that he had benefited directly or indirectly, or received for free a piece of 600-acre land from the Selangor government. Tan further claimed that Sanusi’s comments implied that he had given benefits to the Selangor government for the land, and as such caused the state to incur losses of RM180 million. “The defamatory statements were completely untrue, extreme, vile and specious/spurious, and had no basis whatsoever,” said Tan. However, Sanusi claimed that the comments he made about the land are true, and that Tan and BLand are being given the land by the state government for a river project. Sanusi said that as a member of the opposition Perikatan Nasional coalition, it is his duty to reveal issues of governance and leakages that took place within the administration held by members of the ruling coalitions, namely Pakatan Harapan and Barisan Nasional. He claimed that he continued to make revelations of issues of governance and leakages despite attacks on him. For the Selangor Maritime Gateway project, LLBSB was formed as a special purpose vehicle via a joint venture between Menteri Besar Selangor Incorporated’s subsidiary Landasan Lumayan Sdn Bhd (with a 45% stake) and Berjaya Hartanah Bhd (55%) to, among others, clean and develop the Klang River. Tan’s lawyers explained that Tan and BLand were never awarded any land measuring 600 acres valued at RM10 billion as alleged by Sanusi. es where the company suffers the loss or damage complained of, rather than the person bringing the claim. In bringing that claim, the person would be taking responsibility on behalf of the company for the proceedings. In a filing with Bursa Malaysia on Thursday, MGRC said the individual directors and management are seeking legal advice on the matter and the status will be updated from time to time. MGRC’s Annual Report 2022 filed with Bursa on Oct 25, 2022 showed that its board of directors previously comprised its non-executive chairman Datuk Seri Dr Chen Chaw Min, independent non-executive directors Ku Chong Hong and Mohd Shakir Shahimi, and executive directors Noor Azri Noor Azerai and Datuk Alvin Joseph Nesakumar. THE EDGE CONTINUES ON PAGE 12

FRIDAY OCTOBER 27, 2023 12 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF Unisem 3Q net profit slumps 70% to RM18 mil, declares two sen dividend KUALA LUMPUR (Oct 26): Unisem (M) Bhd’s net profit in the third quarter ended Sept 30, 2023 slumped 70% to RM18.01 million from RM61.73 million a year earlier, on the back of lower revenue of RM356.19 million versus RM439.69 million. In a bourse filing on Thursday, the semiconductor assembly and test services provider said the decrease in revenue and net profit was primarily attributable to lower sales volume, in line with softer market demand. Earnings per share dipped to 1.12 sen versus 3.83 sen. Unisem declared a third interim dividend of two sen per share to be paid on Nov 24. For the nine months ended Sept 30, Unisem said net profit tumbled to RM51.80 million from RM318.28 million on the back of revenue of RM1.09 billion versus RM1.33 billion. — by Surin Murugiah Pavilion REIT’s 3Q net property income rises 34.5% with the newlyacquired Pavilion Bukit Jalil KUALA LUMPUR (Oct 26): Pavilion Real Estate Investment Trust’s (Pavilion REIT) net property income (NPI) for the third quarter ended Sept 30, 2023 (3QFY2023) rose 34.5% to RM121.35 million from RM90.22 million a year earlier, following the inclusion of income from newlyacquired Pavilion Bukit Jalil. Quarterly revenue gained 43.4% to RM199.21 million from RM138.94 million, mainly due to income from Pavilion Bukit Jalil. Distributable income for 3QFY2023 stood at RM78.31 million, up 23.4% from RM63.46 million a year ago while distribution per unit (DPU) grew to 2.15 sen from 2.08 sen. — by SL Chng Vitrox 3Q net profit drops 34.6% to RM33.25 mil on softer demand KUALA LUMPUR (Oct 26): Vitrox Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) dropped by 34.6% to RM33.25 million compared with RM50.84 million in the corresponding quarter the year before (3QFY2022) due to softer customer demand and unfavourable product mix. Quarterly revenue declined by 19.2% to RM149.97 million from RM185.58 million in 3QFY2022, underpinned by softer demand from Automated Board Inspection. — by Sulhi Khalid DRB-Hicom unit EON invests in auto fintech startup KUALA LUMPUR (Oct 26): DRB-Hicom Bhd’s wholly-owned subsidiary, Edaran Otomobil Nasional Bhd (EON), has made an investment in Genie Malaysia, a subsidiary of Carro, Southeast Asia’s largest online usedcar platform. The investment is aligned to the group’s move to enhance its automotive distribution ecosystem. — by Sulhi Khalid However, the company has seen a slew of changes in its management and board since then. These include the appointments of new independent non-executive directors namely Syed Zulkifli Syed Ismail and Aswath Ramakrishnan in May, Chih Yi May in June and Muhammad Badri Hussin and Mohamad Ruzaini Hamzah in October. Earlier in March this year, Alvin had stepped down as executive director due to personal and medical reasons. In May, Noor Azri was redesignated to the role of executive chairman. He replaced Chen, who had resigned due to other work commitments and personal interest. In the FROM PAGE 11 same month, Ku also resigned from the board, citing other professional commitments. In September, MGRC chief executive officer (CEO) Sasha Omar Firdaus Aamir Nordin had resigned from his position, citing pursuing his personal interest as the reason. Sasha was appointed to the role in September 2020. Prior to his appointment as CEO, he was the chief operating officer since February 2014. In July, MGRC also announced the emergence of Datin Seri Jacqueline Ngu Hia Kee, who was Miss Malaysia World 1993/1994, as a new substantial shareholder of the company after acquiring a 5.1% stake in MGRC through 7 million placement shares. In the same month, Rinani Group Bhd became a substantial shareholder after acquiring a 5.85% stake, equivalent to 7.62 million shares, in MGRC and has increased its stake to 11.21% currently. In the financial year ended June 30, 2023, MGRC slipped into the red, posting a net loss of RM14.25 million compared to a net profit of RM7.21 million in the previous year, mainly due to impairment of receivables and additional business activities which required additional expenditures. MGRC shares closed down 0.5 sen or 0.99% at 50 sen on Thursday, with 257,000 shares traded. Its market capitalisation stood at RM68.6 million. The stock’s share price has declined 35% so far this year. Source: Bursa Malaysia ViTrox Corporation Bhd’s earnings performance 0 20 40 60 100 150 200 Net profit (RM mil) Revenue (RM mil) 3Q 4Q 1Q 2Q 3Q FY2022 FY2023 185.58 50.84 48.60 33.00 37.66 33.25 189.99 149.97 149.39 133.33 Sarawak Plantation secures RM40 mil Islamic facility to develop oil palm plantations KUALA LUMPUR (Oct 26): Oil palm player Sarawak Plantation Bhd has secured a RM40 million Islamic facility to partly finance the development costs of its oil palm plantations throughout Sarawak. More specifically, the facility will be used to partly finance the development cost of oil palm plantations and replanting cost on lands located in Sarikei, Mukah, Sibu, Niah and Miri, upgrading the Niah Palm Oil Mill and Mukah Palm Oil Mill, as well as for the construction of estate building(s) and infrastructure in the oil palm plantations. — by Emir Zainul Fitters Diversified to gain RM12.35 mil from Cameron Highlands land disposal KUALA LUMPUR (Oct 26): Fire protection equipment supplier Fitters Diversified Bhd is disposing of an 8.05-hectare piece of freehold land in Cameron Highlands for RM15 million, with an estimated gain on disposal of RM12.35 million. The disposal of the land to Cameron Highlands Floriculture Sdn Bhd is part of Fitters’ ongoing initiative to rationalise its assets and focus its resources on more promising areas of its operations. — by Emir Zainul

FRIDAY OCTOBER 27, 2023 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 26): The former managing director and former chief executive officer of WRP Asia Pacific Sdn Bhd, Datuk Lee Son Hong, has been barred from filing any winding-up petition against the manufacturer and glove exporter company that he previously led, effective from April 12 this year. This follows High Court judge Atan Mustaffa Yussof Ahmad granting WRP Asia’s application to impose a Fortuna injunction against Lee, to prevent him from issuing a notice of demand against the company for RM10 million. A Fortuna injunction is a court order that prohibits a creditor from filing a winding-up petition against a company. In his written judgement released on Thursday, Atan Mustaffa ruled that the debt claimed by Lee is disputed, and the balance of convenience in this case tilts in WRP Asia’s favour. “The potential damages and losses that WRP Asia may incur as a result of the presentation of a winding-up petition are substantial and, more significantly, irremediable. The mere initiation of a winding-up petition can inflict irreparable harm to a company’s reputation and its ongoing business operations. “In this particular case, the adverse effects on WRP Asia’s business relationships with suppliers, access to banking facilities, and customer confidence are highly probable, given that the winding-up petition is based on an unverified ‘alleged debt’ that raises suspicions of its authenticity. Thus, the balance of convenience unequivocally tilts in favour of the company,” he said in the judgement. It is essential, Atan Mustaffa said, that the court intervenes prior to the commencement of the winding-up petition, to preserve the status quo of the parties, as this measure is crucial in maintaining fairness and justice, particularly in light of the genuine disputes raised concerning the “alleged debt”. The court ruled that the alleged debt of RM10 million sought by Lee, who claimed that he advanced the sum to the company in 2019, was suspicious, owing to lack of internal records pertaining to the alleged debt, and the inability of the company’s auditor in its reports and financial statements for the financial year ended June 30, 2019, to verify its existence or validity. “Lee merely relied on a ‘confirmation of balance’ dated June 17, 2019, purportedly issued by him to the company, which was acknowledged by unknown individuals whose identities were not disclosed by Lee or Datuk Seri Tan Shie Khai (Lee’s appointed representative in the company),” said the judge. History of fraudulent behaviour Atan Mustaffa in his judgement also noted that Lee had a history and pattern of fraudulent behaviour or conduct against WRP Asia, taking into account the findings of fellow High Court judge Adlin Abdul Majid, in a civil suit filed by the company against Lee and his wife Datin Too Sooi Keng for breaching their fiduciary obligations. “The company proved that Lee and Too were in breach of their fiduciary duties, had misappropriated funds, and created a fictitious transaction by transferring RM32.6 million from the company to themselves and a company associated with them. Adlin granted the reliefs sought by WRP Asia, including a declaration of breach of fiduciary obligations,” Atan Mustaffa said. The judge noted that Lee also did not bring up the RM10 million debt issue in the case presided by Adlin, even though the parties have been in extensive litigation since 2019. “I find Lee’s action and alleged demand are merely an afterthought, given that he had not once raised and/or demanded the alleged debt since he was terminated as a company director in 2019, but only did BY HAFIZ YATIM theedgemalaysia.com High Court bars former WRP Asia CEO from filing winding-up proceedings against company so after the judgements against his favour were delivered and other trials against him were approaching,” Atan Mustaffa added. In allowing WRP Asia’s application, Atan Mustaffa noted that Lee has the option to pursue his “alleged debt” claim through a civil action, as the alternative legal procedure offers a more suitable avenue for Lee to seek redress and to address his concerns. Furthermore, the judge said, the intervention of the court serves to safeguard WRP Asia from any perceived injustice, potential oppression, and the significant damages that could arise from the presentation of the winding-up petition. “This preventive action is taken to avoid abuse of the court process. In this context, granting a Fortuna injunction is not only legitimate, but also essential to protect the rights and interests of the company,” the judge said, adding that the most reasonable course of action is to grant an injunction to prevent Lee from initiating winding-up proceedings against the plaintiff (WRP Asia).” WRP Asia was represented by Sean Tan and Seaw Ja Hui from Messrs Thomas Philip, while Lee Lin Jun from Messrs Tee Tai Tzian & Sim appeared for Lee. It is understood that Lee is appealing against Atan Mustaffa’s decision at the Court of Appeal. Prior to this, Lee and his wife were charged at the Sessions Court here in 2020, with eight counts of criminal breach of trust involving RM131.85 million and three counts of false claims of RM8.4 million. The criminal case is ongoing. KLBAR.ORG.MY

FRIDAY OCTOBER 27, 2023 14 THEEDGE CEO MORNING BRIEF

FRIDAY OCTOBER 27, 2023 15 THEEDGE CEO MORNING BRIEF WORLD WASHINGTON (Oct 26): The US economy likely grew in the third quarter at its fastest pace of any quarter in nearly two years, again defying dire warnings of a recession, as higher wages from a tight labour market helped to power consumer spending. The Commerce Department’s advance estimate of third-quarter gross domestic product on Thursday is also expected to show residential investment rebounding after nine straight quarters of declines. Business investment is believed to have slowed as the boost fades from the construction of factories. President Joe Biden’s administration has taken steps to encourage more semiconductor manufacturing in the US. While the anticipated robust growth pace notched last quarter is probably not sustainable, it would demonstrate the economy’s resilience despite aggressive interest rate hikes from the Federal Reserve. Still, growth could slow in the fourth quarter because of the United Auto Workers strikes and the resumption student loan repayments by millions of Americans. Most economists have revised their forecasts and now believe the Fed can engineer a “soft-landing” for the economy, citing expectations that the July-September period will show a continuation of second-quarter strength in worker productivity and moderation in unit labor costs. “We’re seeing the exact opposite (of a recession),” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “The American consumer, the biggest engine of the US economy seems to have had a mid-year resurgence, largely because confidence improved through the summer because of the rally in the stock market and steadier gasoline prices.” According to a Reuters survey of economists, GDP likely increased at a 4.3% annualised rate last quarter, which would be the fastest since the fourth quarter of 2021. The economy grew at a 2.1% pace in the April-June quarter and is expanding at a pace well above what Fed officials regard as the non-inflationary growth rate of around 1.8%. Estimates ranged from as low as a 2.5% rate to as high as a 6.0% pace, a wide margin reflecting that some of the input data, including September durable goods orders, goods trade deficit, wholesale and retail inventory numbers will be published at the same time as the GDP report. Consumer spending, which accounts for more than two-thirds of US economic activity, was likely the main driver, with Americans buying long-lasting goods like motor vehicles as well as going to concerts. Spending on goods appears to have picked up considerably because prices have come down. A strong labour market has supported consumer spending. Though wage growth has slowed, it is rising a bit faster than inflation, lifting households’ purchasing power. Growth in consumer spending is expected to have exceed a 4.0% rate after only rising at a 0.8% pace in the second quarter. Speed bump ahead Student loan repayments resumed in October, which economists estimated was equal to roughly US$70 billion (RM334.6 billion), or around 0.3% of disposable personal income, and could dent spending. Though excess savings accumulated during the pandemic reBY LUCIA MUTIKANI Reuters US’ 3Q economic growth seen fastest in nearly two years main ample, they are largely concentrated among high-income households. Low-income consumers are increasingly relying on debt to fund purchases, with higher borrowing costs boosting credit card delinquencies. As a result, some economists see a sharp slowdown around the corner. Others are not too concerned, noting the labor market continues to churn out jobs at a solid clip. “We see scary headlines about credit card debt rising too fast, but it had fallen quite a bit during the pandemic,” said Luke Tilley, chief economist at Wilmington Trust in Philadelphia. “When you look at it as a share of people’s monthly flow of income, it’s actually fairly normal. I don’t think that we’ve hit a point where it’s a canary in the coal mine.” Labour market resilience should be evident in a separate report from the Labor Department on Thursday, which is expected to show a modest rise last week in the number of people filing new claims for unemployment benefits from the previous week’s nine-month low. The GDP data probably will not affect near-term monetary policy as financial conditions have already tightened with US Treasury yields surging while the stock market sold off. Financial markets expect the Fed to keep interest rates unchanged at its Oct 31-Nov 1 policy meeting, according to CME Group’s FedWatch. Since March, the US central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25% to 5.50% range since March 2022. “I think that (strong GDP report) has already been incorporated into their thinking,” said Yelena Shulyatyeva, a senior economist at BNP Paribas in New York. “This has been our view that we have reached the terminal rate for this business cycle.” Growth last quarter was also seen lifted by a smaller trade deficit, thanks to strong exports and increased inventory investment. No impact was expected from the auto strikes, which started in mid-September. But the labor dispute, which is costing auto makers millions of dollars per week, could weigh on growth in the fourth quarter. “I see a speed bump because of the strikes,” said Brian Bethune, an Economics professor at Boston College. “But I don’t see that suddenly we’ll get thrown overboard.” The American consumer, the biggest engine of the US economy seems to have had a mid-year resurgence, largely because confidence improved through the summer because of the rally in the stock market and steadier gasoline prices.” — Economist

FRIDAY OCTOBER 27, 2023 16 THEEDGE CEO MORNING BRIEF WORLD (Oct 26): With the Israel-Hamas war further dividing a world shaken by Russia’s invasion of Ukraine and elevated inflation, US-China ties are suddenly providing cause for some optimism. President Xi Jinping’s government has engaged with a flurry of US leaders since June, with the Chinese president telling a visiting senator this month there were “a thousand reasons to make US-China relations better, and no reason to make them worse” — some of his most dovish recent comments on the relationship. The arrival of China’s Foreign Minister Wang Yi (pic) in Washington on Thursday will continue that trajectory. The top diplomat will meet with President Joe Biden during his trip, as he smooths the path for an anticipated leaders’ meeting with Xi next month in California. While Beijing hasn’t confirmed Xi’s attendance, the Chinese leader on Wednesday told the governor of that state, Gavin Newsom, that their nations’ “interests are closely intertwined.” The US governor said on Thursday there had been “a demonstrable shift compared to where we were a few months ago.” Both sides have reasons to foster friendlier ties ahead of the Asia-Pacific Economic Cooperation (Apec) forum in San Francisco. Beijing needs a more stable geopolitical environment to woo foreign investors as China’s economy slows, while the US wants to diffuse military and economic threats from the Asian powerhouse. Still, the relationship remains fragile. A better-than-expected meeting between Biden and Xi about a year ago — the last time the two leaders spoke face-to-face — was soon derailed by an alleged Chinese spy balloon that passed over the US, underscoring how fast small gains can be lost. China and the US have taken opposite stances on the wars in Europe and the Middle East, and Washington is tightening trade curbs to kneecap Beijing’s access to cutting-edge tech. Biden on Thursday warned China the US would intervene if Beijing attacks Philippine vessels in the South China Sea. Any meeting between Xi and Biden would mostly be “symbolically important”, according to Dongshu Liu, assistant professor specialising in Chinese politics at the City University of Hong Kong. “Beijing is trying to at least calm down the tension between China and the US and stabilise relations,” Liu said. “But both sides understand that they cannot make a big compromise because of domestic pressure.” Relationship nadir China’s relationship with the US crashed in August 2022, after then-US House Speaker Nancy Pelosi defied Beijing’s warnings and visited Taiwan — the self-ruled democracy China claims as its own. Beijing responded by freezing top-level military dialogue with the US, sparking concern that an accident in the Taiwan Strait could spiral into a conflict between the nuclear-armed powers. Now, there are signs military ties are getting back on track. The US Department of Defense confirmed earlier this month it had accepted an invitation to take part in the Beijing Xiangshan Forum next week, the first time China has hosted the event in person since 2019. Read the full story Read also: Russia says it will build close ties with North Korea ‘in all areas’ US-China ties quietly improving even as global turmoil surges WASHINGTON (Oct 25): President Joe Biden is expected to speak with Wang Yi when China’s top diplomat visits the White House this week, according to two US officials familiar with planning for the visit. Wang, who is set to meet Biden’s national security adviser Jake Sullivan, at the White House on Friday could see Biden in person at that time, according to one of the people. The White House declined to comment. It is unclear how substantial their interaction will be, but even an informal greeting would be Biden’s senior-most interaction with the Chinese government since he briefly met Chinese President Xi Jinping’s No 2, Premier Li Qiang, on the sidelines of the G20 summit in New Delhi. It comes as US and Chinese officials set the stage for a long-sought, one-on-one meeting between Biden and Xi at November’s Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Xi and Biden last met at a summit in Bali last November. Wang is also set to meet Secretary of State Antony Blinken during his trip to Washington this Thursday through Saturday. Several top US officials including Blinken met their Chinese counterparts in Beijing this summer. Wang is the top foreign affairs official in the Chinese Communist Party and also foreign minister since the dismissal of Qin Gang in July. Biden said during a press conference on Wednesday he plans to “compete” with China “according to the international rules Biden set to speak with China’s top diplomat Wang Yi on Friday, sources say — economically, politically, and other ways — but I’m not looking for conflict.” He also warned Chinese officials against aggression toward the Philippines. For his part, Xi said on Wednesday China is willing to cooperate with the United States as both sides manage their differences and work together to respond to global challenges, according to Chinese state media. BY TREVOR HUNNICUTT Reuters Bloomberg REUTERS

FRIDAY OCTOBER 27, 2023 17 THEEDGE CEO MORNING BRIEF WORLD WASHINGTON (Oct 26): The US House of Representatives elected Republican Mike Johnson, a conservative with little leadership experience, as speaker on Wednesday, ending a turbulent three weeks that left the rudderless chamber unable to carry out any of its basic duties. The 220 to 209 party-line vote elevated Johnson to the powerful role that has been vacant since Kevin McCarthy was ousted on Oct 3 by a small group of his fellow Republicans. “We want our allies around the world to know that this body of lawmakers is reportRepublican Mike Johnson elected US House speaker, ending leadership vacuum GAZA/JERUSALEM (Oct 26): Israel said its ground forces had pushed into Gaza overnight to attack Hamas targets as Israeli Prime Minister Benjamin Netanyahu said it was “preparing for a ground invasion” that could be one of several. “I will not elaborate on when, how or how many,” he said in a televised update to citizens on Wednesday evening. The besieged Palestinian enclave is already reeling from almost three weeks of Israeli bombardment, which was triggered by a mass killing spree in southern Israel by the Iranian-backed Hamas militants who run Gaza. Hamas has threatened to kill some of the more than 200 hostages it brought back to Gaza, of whom Israel says more than half hold foreign passports, from 25 countries. Other Iranian-backed groups have since attempted attacks on Israel elsewhere in the region; Western leaders fear that a high death toll among Palestinian civilians, who have already been killed in large numbers by Israeli air strikes, could spark a wider war. US President Joe Biden held a call with Netanyahu, discussing “ongoing efforts to locate and secure the release” of Americans believed held hostage in Gaza, the White House said overnight. It said safe passage for foreigners wishing to leave Gaza, a continuous flow of aid into the narrow coastal strip, which is blockaded by Israel, and a pathway to permanent peace with the Palestinian people were also discussed. “The President reiterated that Israel has every right and responsibility to defend its citizens from terrorism and to do so in a manner consistent with international humanitarian law,” the White House said. The comments reflect a balancing act over US support for Israel’s actions after Biden was criticised for casting doubt on Palestinian casualty figures. BEIJING (Oct 26): The United States does not have the right to get involved in problems between China and the Philippines, the Chinese foreign ministry said on Thursday, as tensions simmer over conflicts in the disputed waters of the South China Sea. “The US is not party to the South China Sea issue; it has no right to get involved in a problem between China and the Philippines,” said ministry spokesperson Mao Ning at a regular press briefing when asked about the US saying it will defend the Philippines. China and the Philippines have had several high-profile confrontations in the South China Sea, most notably in disputed waters around the Second Thomas Israel mounts new sortie into Gaza, hints there may be several ‘invasions’ China says US has no right to get involved in its problems with Philippines BY NIDAL AL-MUGHRABI & HENRIETTE CHACAR Reuters BY EDUARDO BAPTISTA & BERNARD ORR Reuters BY DAVID MORGAN, MOIRA WARBURTON & MAKINI BRICE Reuters ing again to our duty stations,” Johnson, 51, said shortly after winning the speaker’s gavel. His first act was to call up legislation to signal support for Israel, which has stepped up its bombings of Gaza following a cross-border killing and kidnapping spree by Hamas militants early this month. Johnson is best known as the author of an unsuccessful appeal by 126 House Republicans to get the Supreme Court to overturn election results in states that Donald Trump had lost in the 2020 presidential election. First elected in 2016, he is the least experienced House speaker in decades. The Louisiana lawmaker declined to answer a question about the Supreme Court effort shortly after his nomination on Tuesday night, while other Republicans booed and heckled the reporter who asked it. In a letter to colleagues, Johnson has vowed to advance overdue spending legislation and ensure that the US government does not shut down when current funding expires on Nov 17. In his speech, he said he would prioritise border security and establish a bipartisan commission to examine ways to tackle the US$33 trillion (RM157.7 trillion) national debt. Shoal, part of the Spratly Islands. Last Sunday (Oct 22), a Chinese vessel collided with a Philippine boat, with Manila condemning “in the strongest degree” the “dangerous blocking manoeuvres” of the vessel. “The US promise of defending the Philippines must not hurt China’s sovereignty and maritime interests in the South China Sea, and it also must not enable and encourage the illegal claims of the Philippines,” Mao said. A spokesperson for the Philippine foreign ministry did not immediately respond to a request for comment. US President Joe Biden said on Wednesday at the White House that America’s commitment to Philippines defence remains “iron-clad” after accusing China of acting “dangerously and unlawfully” in the South China Sea. “Any attack on the Filipino aircraft, vessels, or armed forces will invoke ... our Mutual Defence Treaty with the Philippines,” Biden said in remarks during a joint meeting with Australia’s prime minister. The United States and the Philippines recently agreed on new guidelines for their 1951 Mutual Defence Treaty. The guidelines now specifically mention that mutual defence commitments would be invoked if there were an armed attack on either country “anywhere in the South China Sea”.

FRIDAY OCTOBER 27, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Oct 26): Oil refiners are finding it harder to secure funding for projects as more banks shy away from fossil-fuel financing, with plant owners now pressed to show their businesses have cleaner-energy goals, executives said. While the business is still profitable, getting financing is increasingly challenging, according to Alwyn Bowden, chief executive officer of Malaysia’s Pengerang Energy Complex. From the point of view of many lenders, “if you have the word ‘refinery’ anywhere in your title, you’re not going to get finance,” Bowden told the Asian Downstream Summit in Singapore. With the threat from climate change growing and the world trying to move towards net-zero emissions goals, Bowden’s comments highlight a growing struggle for the industry. Despite worldwide crude demand hitting an all-time high this year, lenders are more wary of offering funding. That’s left the global refining system stretched, raising the risk of bottlenecks and volatile prices. The apparent mismatch between sustained hydrocarbon demand but a reluctance to invest in capacity, or keep plants open, has spurred global tensions in recent years. When fuel costs spiked last year, Saudi Arabia’s top oil official laid the blame on a refining crunch, not any shortage of crude. Now plant owners will need to show that their business is in the process of transitioning to net-zero emissions goals, Bowden added on Wednesday. For its upcoming refinery, that push includes plans to use the plant’s waste products as fuel, as well as electrifying some operations, he said. Oil refiners struggle for financing as banks shun fossil fuels (Oct 26): The so-called “Magnificent Seven” technology companies that have powered this year’s US stock rally are posting disappointing earnings, wiping US$200 billion (RM957.26 billion) off their market value, and threatening to push the S&P 500 into a correction. Google owner Alphabet Inc, Tesla Inc and Facebook parent Meta Platforms Inc have all slumped since reporting, with Microsoft Corp the only bright spot. Amazon. com Inc publishes results after the close on Thursday, and the options market is implying a one-day move for the stock of 8.1% in either direction — putting about US$100 billion in market value in play. The remaining two — Apple Inc and Nvidia Corp — are due to report next month. The seven companies have been the story of the year in the stock market, with a frenzy of interest around artificial intelligence (AI) fuelling gains for many of them. The optimism is waning because of higher interest rates and war in the Middle East — the S&P 500 has fallen 8.8% from its 2023 peak, putting it within reach of the 10% drop that’s defined as a correction in a bull market. Yet there’s still plenty of euphoria left. The tech-heavy Nasdaq 100 Index, dominated by the Magnificent Seven, remains up 31% for year, meaning there’s plenty of room for the market to fall. Meta’s results are going to weigh on the market when trading opens on Thursday. The stock fell 2.4% in pre-market trading after the social media giant dashed investors’ hopes for a long-term advertising recovery, saying it was at the whim of an uncertain economic environment. This comes on the heels of Alphabet erasing almost US$180 billion in market value on Wednesday, after the company’s cloud unit reported a smaller-than-expected profit. The loss was the biggest single-session market Big Tech’s disappointing earnings erase US$200 bil in value BY SUBRAT PATNAIK Bloomberg BY ELIZABETH LOW Bloomberg value wipe-out for the search giant. Earlier in the month, Tesla’s value shrank by US$72 billion in one day after its results. For now, the only glimmer of hope among the big seven is Microsoft. The Windows software maker rallied to add about US$75 billion in market value on Wednesday, after the software giant reported first-quarter results that beat expectations. Alphabet and Microsoft, which both trail Amazon in cloud infrastructure, have been racing to build up their AI offerings as a way to make their platforms more enticing to customers. Their diverging sets of results raise the bar for cloud computing leader Amazon when it reports earnings on Thursday. Read also: Facebook-parent Meta beats revenue estimates on digital ad strength Indonesia’s state-owned PT Pertamina has been able to attain financing, according to Maria Katryn, senior financing manager at PT Kilang Pertamina. The company has environmental projects, but has yet to fully curb emissions, she said. Banks have placed more restrictions on financing oil and gas, with the expectation that the world will soon need less of them, said Roger Charles, executive director of sustainability at DBS Bank Ltd. A realistic narrative for energy-transition plans is key to accessing financing, he added. But even then, pitching sustainable businesses comes with its own pitfalls. “There are a lot of examples of green-washing where people — due to various pressures — get forced to commit to something which they cannot,” said Mayank Vishnoi, chief financial officer of ChemOne Group. Read also: World’s ghost fleet in focus over US Russian price cap crackdown

FRIDAY OCTOBER 27, 2023 19 THEEDGE CEO MORNING BRIEF WORLD (Oct 26): Derivatives that protect against a default by Country Garden Holdings Co were triggered after the troubled Chinese developer didn’t pay interest on a dollar bond. The Credit Derivatives Determinations Committees, which oversee the credit default swaps (CDS) market, ruled a failureto-pay credit event occurred on Oct 18, according to a notice posted on Thursday. A meeting was held on Wednesday to deliberate on whether Country Garden missing a US$15.4 million (RM73.57 million) coupon payment triggered CDS payouts. The bond’s trustee has deemed China’s former largest developer to be in default on a dollar note for the first time after Country Garden didn’t pay interest by the end of a grace period, Bloomberg News reported on Wednesday. The trustee told the bond’s holders that the delinquency “constitutes an event of default”. Country Garden hasn’t offered fresh comments since saying on Oct 18 it didn’t expect to be able to meet all offshore payment obligations on time and hoped to seek a “holistic solution” to its debt. The grace period to pay US$40 million of interest on a separate dollar bond ends on Oct 27. With US$186 billion of total liabilities, Country Garden is one of the world’s most indebted builders and a symbol of China’s broader property debt woes. It recently hired financial and legal advisers to formulate a plan and evaluate its liquidity. Some creditors have been in discussions Country Garden’s missed bond payment triggers CDS payout LONDON/HONG KONG (Oct 26): StanChart shares fell as much as 17% in London on Thursday before trading was temporarily halted, after it announced a profit slump driven by a combined nearly US$1 billion (RM4.7 billion) hit from its exposure to China’s real estate and banking sectors. The bank said pre-tax profit dropped 33% in the third quarter, far worse than analyst estimates, as it booked a US$700 million (RM3.3 billion) impairment from its stake in China Bohai Bank, and a US$186 million charge from Chinese commercial real estate. By 0713 GMT, Standard Chartered shares were down 9%, set for their largest one-day fall since Feb 24 last year, when Russia invaded Ukraine. The UK-headquartered bank, which earns most of its revenue in Asia, booked July-September statutory pretax profit of US$633 million. That compared with US$996 million a year earlier and the US$1.41 billion average of 16 analyst estimates compiled by the bank. The hefty loss in China, where StanChart has based much of its expansion effort, underlines the challenge it faces to improve returns via exposure to the world’s second-largest economy at a time of slowing growth and widening loss on loans. A raft of government easing measures have done little to allay China’s economic fragility as crisis in its property market deepens with high-profile debt-repayment defaults and the absence of state support in the sector. Domestic banking peers have reported squeezed margins while foreign banks, with smaller exposure, have started to take heftier blows as sentiment worsens and the government guides lenders to lower mortgage rates. StanChart said the hit on its 16% stake in China Bohai, a lender in the eastern coastal city Tianjin, was due to lower forecast interest rates and decreased lending margins reported in the Chinese bank’s half-year results. China Bohai booked a 17.8% fall in January-June net interest income, leading to a nearly 7% decline in its overall profit, according to company filings. StanChart’s Chinese real estate exposure totalled US$2.7 billion, down StanChart shares plummet on almost US$1 bil hit from China exposure BY LAWRENCE WHITE & SELENA LI Reuters BY PEARL LIU Bloomberg with potential financial advisers of their own ahead of a possible offshore-debt restructuring. A messy overhaul by Country Garden risks sending the sector into deeper turmoil and posing a threat to social stability, given its large number of projects and heavy presence in smaller cities. Country Garden’s dollar notes are indicated at just four cents, according to prices compiled by Bloomberg, reflecting how little investors expect to recover. Some of the bonds were near 80 cents in June. Its shares in Hong Kong have plunged 74% this year, and the company’s market value hit a record-low US$2.5 billion in August. Read also: Nomura redraws China strategy, cuts jobs after losses deepen WPP slashes outlook again as China slowdown adds to tech woes US$200 million from the previous quarter. The slump in valuation could potentially renew takeover interest in StanChart, after First Abu Dhabi Bank (FAB) in January this year said it had considered but abandoned a bid. StanChart has recently had “no contact” with FAB, chief financial officer Andy Halford told reporters on a conference call on Thursday. ‘Solid performance’ in other business StanChart said it is confident of hitting its return-on-tangible-equity targets of 10% this year and 11% in 2024, but downgraded some other performance forecasts for the year. “Investors were expecting a clean set of third quarter numbers, and we do not have that today,” said Jefferies analyst Joe Dickerson. The “silver lining” for investors was the bank’s underlying business performance — excluding impairment charges — remained solid, Dickerson said in a note to clients. Net interest margin, a measure of return on lending, will now “approach” 1.7 percentage points rather than be “around” that level, StanChart said. Rate-sensitive businesses received a boost, with income from transaction banking — the bulk in cash management services — increasing 42%. Retail products saw 17% income growth, supported by a 50% rise in deposit product income. In the financial markets trading division, income fell 8% as reduced market volatility curbed client appetite for trading. REUTERS

FRIDAY OCTOBER 27, 2023 20 THEEDGE CEO MORNING BRIEF WORLD (Oct 26): The Philippine central bank resumed tightening monetary policy in an off-cycle move on Thursday, and signalled that it’s ready to deliver “follow-through policy action” if necessary to bring inflation back to the target. The Bangko Sentral ng Pilipinas (BSP) will increase its target rate by 25 basis points to 6.5% effective from Friday, governor Eli Remolona said in a briefing. “The monetary board recognised the need for this urgent monetary action to prevent supply-side price pressures from inducing additional second-round effects and further dislodging inflation expectations,” he said. The move telegraphed by the the governor earlier this week takes the cumulative BSP rate increases since May 2022 to 450 basis points, in the bank’s most aggressive tightening in two decades. Further tightening will be considered in the Nov 16 policy meeting, according to Remolona, who said in his personal view the BSP “fell a little bit behind”, after it decided not to raise the rate in the September meeting, when inflation risks had already increased. “That is the reason for this effort to catch up,” the governor said. The rate panel “deems it necessary to keep monetary policy settings tighter for longer until inflationary expectations are better anchored and a sustained downward trend in inflation becomes evident”. The BSP has raised its “risk-adjusted” inflation forecast for 2024 to 4.7%, from a previous estimate of 4.3%, Remolona said, well above the 2% to 4% target. Inflation risks have risen after global oil prices soared, as the Middle East conflict intensified. The Philippines is the latest to resume tightening, after Indonesia surprised with a quarter-point move last week. The Reserve Bank of Australia’s new governor this week said policymakers won’t hesitate to raise rates if there’s a “material upward” risk to the inflation outlook. Singapore opted to review policy settings quarterly instead of biannually to respond to economic data faster. The Philippine peso held its loss after the decision, with the currency trading 0.2% weaker at 56.97 per dollar as of 3.54pm local time. A rate hike may help bolster the peso, which slid about 4% in the past three months. Philippines signals further tightening after off-cycle hike (Oct 26): The European Central Bank (ECB) left interest rates unchanged for the first time in more than a year, as it gauges whether an unprecedented series of hikes will succeed in subduing inflation. Following last month’s knife-edge decision to lift the deposit rate to a record 4%, policymakers kept it there on Thursday — matching the predictions of all economists surveyed by Bloomberg. They reiterated in a statement that holding borrowing costs at that level for long enough will make a “substantial contribution” to bringing consumer-price gains back to the 2% target. Speaking in Athens, where the Governing Council gathered for one of its regular meetings beyond the ECB’s Frankfurt headquarters, president Christine Lagarde said “we have to be steady”. “Having a discussion on cuts is totally, totally premature,” she told reporters, reiterating her position from September’s meeting. “The fact that we are holding doesn’t mean to say that we will never hike again.” The euro held losses against the dollar, while German bonds edged higher. Italian bonds, which have been a major beneficiary of ECB debt-buying programmes, outperformed as Lagarde said changes to the €1.7 trillion (US$1.8 trillion or RM8.58 trillion) pandemic emergency purchase programme (PEPP) weren’t discussed this week. With the ECB’s statement affirming the existing end-2024 cut-off to cease PEPP reinvestments, Italy’s 10-year yield fell 10 basis points, sending the spread over German peers below 200 basis points. SEOUL (Oct 26): South Korea’s economy fared better than expected in the third quarter with the expansion underpinned by exports, backing the case for the central bank to keep rates on hold for the months ahead. Gross domestic product (GDP) grew 0.6% in the July-September quarter from three months earlier, data from the Bank of Korea showed on Thursday, the same pace as the prior quarter and beating a median 0.5% increase forecast in a Reuters survey. The report points to an economy that is still in a soft patch and undergoing an exports-based recovery after a cumulative 300 basis points of interest rate hikes since August 2021 weighed on indebted households and restrained spending. In the third quarter, exports expanded 3.5% after declining 0.9% in the preceding three months, while private consumption grew 0.3% after contracting 0.1% in the second quarter. Government spending grew 0.1%, and construction investment expanded 2.2% after contracting 0.8% in the second quarter. Facility investment has been a drag, contracting 2.7% on-quarter. On an annual basis, Asia’s fourth-largest economy grew 1.4% in the third quarter, after a 0.9% gain in the second quarter and beating a 1.1% rise expected by economists. South Korea’s central bank held interest rates steady for a sixth straight meeting last week, retaining a tightening bias on monetary policy as it warned of inflationary risks from the Israel-Hamas conflict and global oil prices. In a separate Reuters survey conducted early this month, South Korea’s economic growth was forecast to slow to 1.2% in 2023 from 2.6% in 2022. That is lower than the government and the central bank’s projection for 1.4%. ECB presses pause after barrage of hikes to tame inflation South Korea’s economic growth beats estimates, backing rate pause BY JANA RANDOW, ALEXANDER WEBER & SOTIRIS NIKAS Bloomberg BY CYNTHIA KIM & JIHOON LEE Reuters BY CLIFF VENZON & DITAS LOPEZ Bloomberg

FRIDAY OCTOBER 27, 2023 21 THEEDGE CEO MORNING BRIEF WORLD (Oct 26): Thai Prime Minister Srettha Thavisin’s administration is planning to trim the size of a US$15 billion cash handout plan to address fiscal concerns of investors and economists. A government team working on Srettha’s flagship stimulus measure — a one-time digital wallet payment of 10,000 baht (US$275) each to about 55 million adult Thais — has proposed three options to pare the number of recipients and reduce the program’s cost. One of the proposals is to limit the beneficiaries to about 15 million welfare card holders, which would cut the expenditure by two-thirds to 150 billion baht (US$4.12 billion). The team is expected to present the proposals next week to a committee headed by the premier, Deputy Finance Minister Julapun Amornvivat said late on Wednesday. He also said the implementation of the cash handout may be delayed to the second quarter. The review comes amid growing calls for the government to scrap the cash handout plan, as it risks stoking inflation and widening the fiscal deficit. A petition signed by dozens of Thai economists and analysts, including former central bankers, earlier this month said the program will do more harm than good. Thailand to trim US$15 bil handout to ease fiscal burden (Oct 26): Indonesia’s fiscal deficit is set to come in lower than expected this year, giving the government room to pare back bond sales while still accelerating spending to support growth. The budget balance, which stayed in surplus of 0.32% of gross domestic product in September, will likely end the year below the projected 2.28% deficit, Finance Minister Sri Mulyani Indrawati said on Wednesday. The government has space to lower bond issuance accordingly, said Suminto, the director-general of budget financing and risk management. The comments may lend some relief to investors after the release of a higher-than-expected fourth-quarter bond sale plan earlier this month, which sent the benchmark 10-year yield to the highest level in a year. The smaller deficit also paves way for over 10 trillion rupiah (US$630 million) of incentives to maintain growth at about 5.1% in the third quarter and for the entire 2023, Indrawati said. Very volatile The budget’s solid footing may set deficit as low as 1.5%-1.8% of GDP this year, according to PT Bahana Sekuritas analysts in Jakarta, which “provides the government with greater fiscal flexibility as we approach the upcoming election period and given higher uncertainties in the global economy,” Satria Sambijantoro and Drewya Cinantyan wrote in a note. Indrawati warned that fundraising has become challenging as “very volatile and unpredictable” US Treasury yields are pushing up global interest rates, pressuring currencies and impacting the real sector. Indonesia’s 10-year bond yields have climbed nearly 30 basis points this month, while the rupiah is trading near a three-year low. The ministry is considering all possible debt instruments amid the uncertainties and will be “open-minded” in finding a favorable window for a potential global bond offer, Suminto added. To shore up domestic economic growth, the government will add social assistance for low-income households to offset higher rice prices and the impact of El Nino. It is also reintroducing a government-borne tax on new house purchases through 2024, complementing the central bank’s policy bargain to offset the impact of high rates. The finance ministry expects to have 226 trillion rupiah in cash reserves known as SAL by yearend, which will partly be used for subsidies and capital investment in state-owned enterprises in early 2024. Singapore bank UOB sees stronger 2024 outlook, 3Q net profit trails estimate Indonesia’s narrow budget deficit may allow lower bond sales BY YANTOULTRA NGUI Reuters BY CLAIRE JIAO AND GRACE SIHOMBING Bloomberg BY SUTTINEE YUVEJWATTANA Bloomberg SINGAPORE (Oct 26): Singapore’s United Overseas Bank (UOB) expected a stronger outlook for next year including improved loan and fees growth, as it reported on Thursday a weaker-than-expected 1% drop in third-quarter net profit from a year earlier. UOB, Singapore’s third-largest bank by assets, projected mid single-digit loan growth and double-digit fee growth for its 2024 outlook, versus low-to-mid single-digit loan growth and high single-digit fees growth for this year’s outlook. “The double-digit fee growth projection for its 2024 outlook looks promising, given that net fee income delivered year-on-year contraction for the bulk of last year,” said Yeap Jun Rong, IG Asia’s market analyst. The bank, Southeast Asia’s third-biggest, also projected margins to remain at current levels for 2024, but foresaw credit cost at around 25 to 30 basis points for next year versus just around 25 basis points for rest of 2023. Wee Ee Cheong, UOB’s deputy chairman and CEO, said he believed “the situation in China will stabilise and continue to improve on the back of support measures recently announced.” UOB said July-September net profit dropped to S$1.38 billion (RM4.7 billion) from S$1.40 billion a year earlier, mainly on the back of higher allowances for credit and other losses, as well as Citigroup integration costs. The profit was lower than the mean estimate of S$1.46 billion from four analysts polled by LSEG. Read also: Taylor Swift mania sparks record-breaking jump in UOB card fees Indonesian Finance Minister Sri Mulyani Indrawati

FRIDAY OCTOBER 27, 2023 22 THEEDGE CEO MORNING BRIEF WORLD Japan’s Denso to invest US$3.3 bil to bulk up chips business Bitcoin faces reality check if ETF launches spark ‘sell-thenews’ pivot BY AKSHAY CHINCHALKAR & SUVASHREE GHOSH Bloomberg BY DANIEL LEUSSINK Reuters Chart patterns hint that the Bitcoin rally has become stretched, while options bets signal some speculators see a runway to US$40,000 before the token stalls. (Oct 26:) Bitcoin has jumped on bets that the first US exchange-traded funds investing directly in the token are set to be approved. The question now is whether an actual green light for the products would spur some profit-taking. The largest digital asset is up 16% this week and at one point topped US$35,000 for the first time since 2022. In contrast, global stocks are wilting under elevated Treasury yields and deepening geopolitical gloom. Digital-asset fans argue the spot ETFs planned by the likes of BlackRock Inc will spur wider Bitcoin adoption. But the timing of any approval from a wary Securities and Exchange Commission remains uncertain. Mainstream demand has also been hurt by crypto blowups such as the bankruptcy of the FTX exchange. “Markets have priced in a Bitcoin spot ETF approval and I expect a sell-thenews event if it’s approved,” said Hayden Hughes, co-founder of social-trading platform Alpha Impact. Chart patterns hint that the Bitcoin rally has become stretched, while options bets signal some speculators see a runway to US$40,000 before the token stalls. Bitcoin — which has more than doubled this year following a deep crypto rout in 2022 — was steady at US$34,490 as of 10.14am in London on Thursday, while smaller tokens such as Ether, Avalanche and Dogecoin pushed higher. Technical test Fibonacci ratios — proportions found in nature that are also used to help identify market reversals — indicate a zone just below US$36,000 poses a challenge for the Bitcoin bounce. The zone is delineated by the 38.2% Fibonacci retracement of Bitcoin’s one-year plunge through November 2022. Cici Lu McCalman, founder of blockchain adviser Venn Link Partners, said she expects short-term selling if US spot Bitcoin ETFs are approved but added that the products would be “bullish” for the token longer term. ‘Overbought’ RSI Bitcoin’s weekly relative-strength index, a momentum gauge, topped the 70 level for the first time since 2021. A reading above 70 is viewed as “overbought,” suggesting reduced odds for a repeat of recent furious rallies, such as two separate 10% intraday jumps. “The frenzied speculation about the upcoming ETF approval may be a symptom of other more structural bullish factors, such as the steady clean-up of the previous year’s industry excesses, and a renewed inflation hedge narrative given the macro environment,” said Caroline Mauron, co-founder of digital-asset derivatives liquidity provider OrBit Markets. Derivatives insight Derivatives data from Deribit, the biggest crypto options exchange, show a significant concentration of bullish bets on Bitcoin reaching US$40,000 by the end of the year. That would represent a 16% advance from current levels. JPMorgan Chase & Co strategists including Nikolaos Panigirtzoglou wrote in a note that they expect the SEC to approve multiple spot Bitcoin ETFs by a Jan 10 deadline. “Any rejection could trigger lawsuits against the SEC creating more legal troubles for the agency,” they said. TOKYO (Oct 26): Japanese automotive supplier Denso will invest about 500 billion yen (US$3.3 billion) in semiconductors by 2030, as it aims to triple the scale of its chips business by 2035 from current levels, the company’s president said on Thursday. Denso, a Toyota group supplier and one of the world’s largest makers of auto parts and components, has been ramping up its chip business in recent years, including by forging partnership deals to help it secure more semiconductors. Last year, it said it would take a stake in a chip plant Taiwan Semiconductor Manufacturing Co is building in Japan with Sony, highlighting how the pivot to electric vehicles and so-called “connected cars” has deepened semiconductor demand from auto companies and their suppliers. Read also: Mattel sees challenging economy over holidays for toy industry Unilever’s new CEO lays out plans to simplify operations “To expand production, we must ensure the stable procurement of materials. Thus, we will forge strategic partnerships with various companies,” Denso president Shinnosuke Hayashi said at the Japan Mobility Show, which officially opened on Thursday. The company will hire new employees to specialise in electrification and software and also move staff from mature businesses to electrification and software, he said. BLOOMBERG

FRIDAY OCTOBER 27, 2023 23 THEEDGE CEO MORNING BRIEF WORLD BERLIN (Oct 26): Mercedes-Benz said a “brutal” electric vehicle (EV) market of heavy price cuts and supply chain issues meant it would likely hit the lower end of its 12% to 14% adjusted return on sales forecast for the cars division, as third-quarter earnings fell. The luxury carmaker said it remains committed to its EV targets, but could bolster earnings with better returns from its combustion engine portfolio if margins on EVs remain lower than previously assumed, its chief financial officer said on an analyst call. With some traditional players selling battery EVs below the level of internal combustion engine cars despite their higher production costs, “this is a pretty brutal space”, Harald Wilhelm said. “I can hardly imagine the current status quo is fully sustainable for everybody,” he said. Discounts offered on some models in Germany in the fourth quarter did not represent an overall shift in the carmaker’s pricing strategy of keeping prices high to focus on boosting margins over volume, Wilhelm said. Mercedes-Benz shares had slid more than 6% by 0733 GMT to their lowest in almost a year, and were the biggest fallers on the eurozone blue-chip index. BMW was down 4% and Volkswagen more than 2%. Carmakers from Ford to Tesla have been slashing prices throughout the year in markets from the US to China to stoke demand, but Mercedes-Benz has broadly resisted following suit. The company on Thursday reported a 12.4% adjusted return on sales in its cars division in the third quarter. Earnings before interest and taxes across the group fell 6.8% to €4.8 billion (US$5.1 billion or RM24.23 billion), slightly above the consensus, as its earnings from vans jumped 44% to €715 million, with an adjusted return on sales of 15%. Read the full story Read also: VW vows to drive efficiencies after dismal 3Q returns Mercedes-Benz says ‘brutal’ EV market will pressure car sales margins (Oct 26): South Korean companies are rushing to buy more graphite from China before export controls on electric vehicle (EV) battery ingredient take effect in December. LG Energy Solution Ltd said on an earnings call on Wednesday that it will try and buy more graphite as soon as possible prior to the measures kicking in. Posco Future M Co, a battery-electrode maker, is also making efforts to maintain “the proper levels of stockpiles” before the Dec 1 deadline, it said in an emailed response to questions. China’s Ministry of Commerce said last Friday that it will place some types of graphite under export controls in order to safeguard national security. While the measures don’t necessarily mean shipments will be banned, the announcement unnerved EV makers given the country accounts for about 60% of world’s natural graphite production capacity, and 90% for the synthetic variety. The Chinese controls on graphite come amid increased competition between Beijing and Washington for materials critical to the energy transition and high-tech sectors, and happened just days after the White House stepped up efforts to keep advanced chips out of China. In August, Beijing restricted exports of gallium and germanium — crucial to the semiconductor and telecommunications industries — before resuming some volumes the following month. Gallium and germanium have jumped 20% to 30% since the restrictions, and it’s likely graphite prices could increase by a similar amount, said Steve Man, an analyst at Bloomberg Intelligence. Exports that comply with requirements will be approved, said Shu Jueting, spokeswoman at the Ministry of Commerce, during a press briefing on Thursday, adding that China is dedicated to ensuring the security and stability of global supply chains. “It’s not targeted at any specific country, region, or sector.” South Korean battery manufacturers are heavily reliant on graphite imports. The country’s trade ministry said on Monday it’s looking to African countries — including Mozambique and Tanzania — to address potential shortfalls of the material. The minBattery makers hunt for graphite ahead of China controls istry said it will also seek to bring forward the start of of a domestic synthetic graphite factory scheduled to open next year. Both LG Energy and Posco Future M said they didn’t regard China’s move as an export ban, but rather a new process for approvals. Posco Future M said it has enough graphite stockpiles to last 1.5 months, and the measure will not impact production, adding that it’s seeking to diversify supply by investing in mining rights in Tanzania. “We see the halting of ex-China battery production as improbable, but assuming the status quo remains, natural graphite products will see increased administrative barriers,” said Matthew Langsford, a portfolio manager at Terra Capital, which holds stocks of graphite producers. Graphite is an essential ingredient in EV battery anodes, a terminal inside a rechargeable cell. Battery makers can either use natural graphite extracted from mines to make anodes, or a synthetic material that’s typically more expensive but lasts longer, charges faster and improves safety. Some anode manufacturers outside China may face short-term shortages and not be able to deliver to cell manufacturers in time, but there’s unlikely to be delays in cell manufacturing and packaging for the time being, research firm Sinolytics said in a note. Australian graphite miner Syrah Resources Ltd, which has a graphite mine in Mozambique and an anode material facility in the US, said there were likely to be more inventory purchases by non-Chinese buyers of the material. Uncertainty regarding the impact of the Chinese restrictions is expected to continue into 2024, it said in a stock exchange filing. BY ANNIE LEE & HEEJIN KIM Bloomberg BY VICTORIA WALDERSEE Reuters The Chinese controls on graphite come amid increased competition between Beijing and Washington for materials critical to the energy transition and high-tech sectors.

FRIDAY OCTOBER 27, 2023 24 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) CSH ALLIANCE BHD 335.9 0.000 0.060 50.00 82.9 WIDAD GROUP BHD 88.3 -0.020 0.455 5.81 1,408.9 UEM SUNRISE BHD 65.1 0.070 0.820 221.57 4,148.0 LEFORM BHD 62.5 0.005 0.245 18.70 362.8 VELESTO ENERGY BHD 58.9 0.000 0.260 73.33 2,136.1 SARAWAK CONSOLIDATED 58.3 -0.005 0.540 272.41 345.7 KANGER INTERNATIONAL BHD 57.3 0.015 0.140 250.00 91.0 ASDION BHD 46.7 0.020 0.100 5.26 44.7 EKOVEST BHD 44.8 0.025 0.490 44.12 1,453.1 MY EG SERVICES BHD 37.0 -0.010 0.775 -9.92 5,781.1 SIME DARBY PROPERTY BHD 36.9 -0.015 0.620 37.78 4,216.5 SALUTICA BHD 35.8 0.050 0.715 169.81 302.8 META BRIGHT GROUP BHD 35.5 0.005 0.260 52.94 617.1 KNM GROUP BHD 33.3 0.005 0.105 110.00 424.6 UCREST BHD 31.2 -0.005 0.175 40.00 129.8 CIMB GROUP HOLDINGS BHD 30.1 -0.010 5.680 -2.07 60,577.8 ECONPILE HOLDINGS BHD 29.3 0.020 0.325 91.18 460.7 MALAYSIAN RESOURCES CORP BHD 28.9 0.010 0.425 44.07 1,898.7 YTL CORP BHD 28.8 0.070 1.400 141.38 15,349.7 ISKANDAR WATERFRONT CITY BHD 26.9 0.055 0.655 142.59 603.3 Data as compiled on Oct 26, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) XOX BHD 0.015 50.00 1,035.3 0.00 75.8 ZEN TECH INTERNATIONAL BHD 0.020 33.33 3,274.0 0.00 52.6 ASDION BHD 0.100 25.00 46,698.8 5.26 44.7 XIDELANG HOLDINGS LTD 0.025 25.00 4,458.8 0.00 52.9 XOX NETWORKS BHD 0.035 16.67 1,379.6 16.67 39.7 ZELAN BHD 0.040 14.29 6.1 -42.86 33.8 BSL CORP BHD 0.040 14.29 128.0 -40.83 77.3 TA WIN HOLDINGS BHD 0.040 14.29 1,470.4 -27.27 137.4 ALDRICH RESOURCES BHD 0.040 14.29 1,782.2 33.33 44.5 SC ESTATE BUILDER BHD 0.040 14.29 20.6 -11.11 43.0 TSR CAPITAL BHD 0.290 13.73 260.1 45.00 50.6 SARAWAK CABLE BHD 0.045 12.50 1,612.0 -30.77 18.0 KANGER INTERNATIONAL BHD 0.140 12.00 57,317.1 250.00 91.0 SERSOL BHD 0.145 11.54 2,429.9 -36.96 106.1 REACH ENERGY BHD 0.050 11.11 931.1 11.11 106.4 PAN MALAYSIA HOLDINGS BHD 0.050 11.11 10.1 -28.57 46.4 PERMAJU INDUSTRIES BHD 0.050 11.11 512.1 11.11 97.3 OCB BHD 0.775 10.71 16.5 3.33 79.7 AMTEL HOLDINGS BHD 0.675 10.66 3,584.9 -22.86 64.3 ONE GLOVE GROUP BHD 0.210 10.53 1,081.3 -41.24 92.7 Data as compiled on Oct 26, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.005 -50.00 750.2 0.00 18.4 EA HOLDINGS BHD 0.005 -50.00 5.0 -66.67 32.3 AE MULTI HOLDINGS BHD 0.010 -33.33 70.0 -60.00 21.6 COMPUGATES HOLDINGS BHD 0.010 -33.33 193.0 0.00 55.0 MMAG HOLDINGS BHD 0.010 -33.33 21,672.9 -60.00 24.2 LAMBO GROUP BHD 0.015 -25.00 1,114.5 -72.73 23.1 TALAM TRANSFORM BHD 0.020 -20.00 79.8 33.33 85.9 ANNUM BHD 0.095 -17.39 7,719.7 -70.31 21.6 TWL HOLDINGS BHD 0.025 -16.67 12,720.1 -28.57 121.8 CME GROUP BHD 0.030 -14.29 30.0 0.00 31.0 PERAK CORP BHD 0.265 -10.17 6.1 6.00 26.5 HONG SENG CONSOLIDATED BHD 0.045 -10.00 12,608.0 -79.55 229.9 MTOUCHE TECHNOLOGY BHD 0.045 -10.00 3,607.6 -10.00 41.7 SILVER RIDGE HOLDINGS BHD 0.655 -9.66 8,729.9 385.19 139.9 CHINA OUHUA WINERY HOLDINGS 0.050 -9.09 20.0 -23.08 33.4 MALAYAN UNITED INDUSTRIES BHD 0.055 -8.33 2,338.9 -26.67 177.4 XOX TECHNOLOGY BHD 0.055 -8.33 1,819.0 22.22 49.1 JADI IMAGING HOLDINGS BHD 0.065 -7.14 437.6 -23.53 91.0 PNE PCB BHD 0.065 -7.14 631.0 18.18 36.4 LUSTER INDUSTRIES BHD 0.070 -6.67 971.2 -26.32 211.6 Data as compiled on Oct 26, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 124.900 -1.700 163.6 -10.79 29,289.1 HEXTARTECHNOLOGIES SOLUTIONS 23.700 -0.900 7.5 38.92 3,049.0 RAPID SYNERGY BHD 25.860 -0.400 412.0 62.03 2,764.3 FRASER & NEAVE HOLDINGS BHD 25.980 -0.280 6.4 20.39 9,528.9 KUALA LUMPUR KEPONG BHD 22.200 -0.200 442.2 -0.72 23,941.3 PPB GROUP BHD 15.240 -0.140 603.3 -12.61 21,680.4 HAP SENG CONSOLIDATED BHD 5.180 -0.120 1,608.5 -19.06 12,896.5 RIVERVIEW RUBBER ESTATES BHD 3.090 -0.110 113.0 -10.32 200.4 BATU KAWAN BHD 20.500 -0.100 3.3 -8.07 8,064.3 BLD PLANTATION BHD 10.820 -0.100 1.0 5.46 1,011.7 UNITED PLANTATIONS BHD 16.820 -0.100 107.3 12.05 6,976.7 HEINEKEN MALAYSIA BHD 23.940 -0.100 114.4 -5.00 7,232.2 CENTRAL GLOBAL BHD 2.990 -0.080 1,448.5 230.39 520.8 ALLIANZ MALAYSIA BHD 15.900 -0.080 16.4 12.29 2,829.7 UNISEM M BHD 3.100 -0.080 1,185.3 12.32 5,000.5 AURELIUS TECHNOLOGIES BHD 2.520 -0.080 562.9 37.70 993.1 MALAYAN CEMENT BHD 3.530 -0.070 717.6 66.51 4,625.0 SILVER RIDGE HOLDINGS BHD 0.655 -0.070 8,729.9 385.19 139.9 INARI AMERTRON BHD 2.870 -0.070 4,711.6 9.96 10,744.6 BURSA MALAYSIA BHD 6.680 -0.070 175.1 0.45 5,406.1 Data as compiled on Oct 26, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) AJINOMOTO MALAYSIA BHD 15.500 0.300 21.9 18.50 942.4 SOUTHERN ACIDS MALAYSIA BHD 3.450 0.200 16.8 -5.48 472.4 BINTULU PORT HOLDINGS BHD 5.260 0.160 0.1 9.58 2,419.6 KESM INDUSTRIES BHD 7.010 0.110 6.5 -0.14 301.5 D&O GREEN TECHNOLOGIES BHD 3.320 0.100 1,045.7 -22.43 4,111.1 HONG LEONG FINANCIAL GROUP 17.420 0.080 439.4 -6.34 19,950.2 OCB BHD 0.775 0.075 16.5 3.33 79.7 CHIN TECK PLANTATIONS BHD 7.670 0.070 1.1 -9.95 700.8 YTL CORP BHD 1.400 0.070 28,767.7 141.38 15,349.7 UEM SUNRISE BHD 0.820 0.070 65,135.4 221.57 4,148.0 AMTEL HOLDINGS BHD 0.675 0.065 3,584.9 -22.86 64.3 CARLSBERG BREWERY MALAYSIA 19.900 0.060 18.4 -13.02 6,084.4 NEW HOONG FATT HOLDINGS BHD 3.090 0.060 1.0 7.67 255.5 KOTRA INDUSTRIES BHD 5.200 0.060 2.5 -21.21 771.2 GENETEC TECHNOLOGY BHD 2.510 0.060 2,754.0 5.02 1,942.2 TEO GUAN LEE CORP BHD 1.240 0.060 71.3 12.73 103.5 ISKANDAR WATERFRONT CITY BHD 0.655 0.055 26,896.6 142.59 603.3 WESTPORTS HOLDINGS BHD 3.340 0.050 1,608.6 -12.11 11,389.4 TOMEI CONSOLIDATED BHD 1.230 0.050 345.0 23.00 170.5 SALUTICA BHD 0.715 0.050 35,759.8 169.81 302.8 Data as compiled on Oct 26, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 32,977.34 -58.59 -0.18 S&P 500 * 4,164.94 -21.83 -0.52 NASDAQ 100 * 14,208.53 -173.11 -1.20 FTSE 100 * 7,414.34 -40.70 -0.55 AUSTRALIA 6,812.32 -42.02 -0.61 CHINA 2,988.30 14.19 0.48 HONG KONG 17,044.61 -40.72 -0.24 INDIA 63,148.15 -900.91 -1.41 INDONESIA 6,714.52 -119.87 -1.75 JAPAN 30,601.78 -668.14 -2.14 KOREA 2,299.08 -64.09 -2.71 PHILIPPINES 6,018.49 -36.01 -0.59 SINGAPORE 3,071.31 -7.47 -0.24 TAIWAN 16,073.74 -285.15 -1.74 THAILAND 1,371.22 -30.48 -2.17 VIETNAM 1,055.45 -46.21 -4.19 Data as compiled on Oct 26, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,762.000.00 OIL US$ 88.76-1.37 RM/USD 4.7870 RM/SGD 3.4914 RM/AUD 3.0216 RM/GBP 5.7873 RM/EUR 5.0486