The Edge - 02 April 2024

CEOMorningBrief TUESDAY, APRIL 2, 2024 ISSUE 742/2024 theedgemalaysia.com GOLD HITS FRESH ALL-TIME PEAK AS US DATA LIFTS JUNE RATE CUT HOPES p17 HOME: 17.65 mil citizens’ profiles updated on Padu system — Rafizi p2 Malaysian manufacturing saw further moderation in March p4 Mavcap aims to raise venture capital total funding value to US$1.4 bil by 2030 p6 Energy Commission opens LSS5 up for bidding, targets 2,000MW of solar generation p7 WORLD: Asian factory activity slumps, brighter signs emerge in China p18 Economists deem 30% realisation of approved investments in manufacturing sector in 2023 reasonable Report on Page 3 VECTEEZY.COM

tUESday A PRIL 2, 2024 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] 17.65 mil citizens’ profiles updated on Padu system — Rafizi Zafrul quits as Selangor Umno treasurer PUTRAJAYA (April 1): A total of 17.65 million or 58.7% of the total profile of people including household members under 18 years old were successfully updated in the Padu system. In Monday’s statement, Economy Minister Rafizi Ramli said 11.55 million or 52.6% of citizens over the age of 18 have successfully registered and updated their profile in the Central Database Hub (Padu) system after registration closed on Sunday. “I express my appreciation to all Malaysians who have taken the initiative to register with Padu,” he said. Padu system registration closed at 11.59pm on March 31, 2024. He also thanked and congratulated the Padu system development team at the Ministry of Economy, Department of Statistics Malaysia, National Digital Department, Ministry of Communications and also the agencies involved for the successful implementation of Padu. “High and unwavering commitment has been shown by the Padu team since registration opened on first day,” he said. Rafizi said the Ministry of Economy will next present the subsidy retargeting plan to the Cabinet this month. SHAH ALAM (April 1): Umno supreme council member Tengku Datuk Seri Zafrul Abdul Aziz has announced his resignation as Selangor Umno treasurer, effective Monday. However, the minister of Investment, Trade and Industry said he will continue his duties and role as Kota Raja Umno division chief and Umno supreme council member. He said that when he was appointed an Umno supreme council member and Selangor Umno treasurer over a year ago, Bernama Bernama home he set the main goal to contribute to the resurgence of Umno in the state. “My approach and principle are simple, if I cannot contribute to positive change or improvement, then I should not hold a position. It is better for me to vacate the position for someone who can contribute more effectively. “Therefore, effective today, I am resigning as the treasurer of Selangor Umno,” he said in his latest post on his Facebook account. Zafrul also expressed his gratitude for the appointment and trust bestowed upon him and prays that Allah SWT would bless his struggle, and hopefully Umno, especially Selangor Umno, will regain ground in the hearts of the people of the state. “May Umno return to the political arena strongly for the sake of Religion, Race, and Country. Dulu, Kini dan Selamanya (Past, Present and Forever),” he said. the edge Suhaimi Yusuf/The Edge “The government will announce development on the matter in the future,” he said. He said for citizens who did not successfully register and update their profiles with Padu, the available administrative data is sufficient and will be used for the government to determine individual eligibility for the purpose of retargeting subsidies. “If there is a need, the Ministry of Economy will announce the reopening of Padu for a short period of time for registration and updating, after the government decides on the form and mechanism of targeted subsidies,” he said.

TUESDAY APRIL 2, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (April 1): The East Coast Economic Region (ECER) development council (ECERDC) has realised investments totalling RM41.4 billion up to March 2024, or 84% of the RM49 billion target under the ECER Master Plan 2.0 (EMP 2.0). These investments have created 68,000 job opportunities and 23,000 entrepreneurial opportunities in ECER, Prime Minister Datuk Seri Anwar Ibrahim said in a post on his Facebook page on Monday. “During the same period, ECERDC also achieved RM55.2 billion in committed investments, or 79% of EMP 2.0’s target of RM70 billion,” he posted after chairing the first ECERDC meeting for 2024, which was also attended by menteris besar who sit on the council. Anwar, who is also finance minister, said he emphasised the important role played by economic corridor authorities in facilitating investments, along with the MalayInvestments worth RM41 bil realised by ECERDC up to last month, says PM KUALA LUMPUR (April 1): Malaysia’s progress in realising RM46.1 billion or nearly one-third of the total RM152 billion approved investments for the manufacturing sector in 2023 is deemed to be reasonable, given that it typically takes between 18 and 24 months to implement, according to economists. The Ministry of Investment, Trade and Industry (Miti) has also been improving its information tracking system over the years to ensure that agencies like the Malaysian Investment Development Authority (Mida) is capable of providing timely assistance to businesses in implementing their capital expenditure in the manufacturing sector, Socio-Economic Research Centre (SERC) executive director Lee Heng Guie told The Edge. “Usually, [Miti] looks at it at a longer horizon, because they said a typical investment takes 18-24 months to implement, so if last year alone one-third of what they approved is already realised...that by itself is quite good,” he said over the phone. Lee said SERC requested data from Mida last year for one of its research projects, and was told that for the period 2016- June 2023, a total of 6,103 manufacturing projects had been approved, of which 5,202 projects or 85.2% had been implemented. UOB senior economist Julia Goh also said the progress last year is reasonable considering that implementation rate over the past three years was over 70%. “Bank Negara Malaysia did share that the rate of implementation between 2021 and 2023 was 74%, more than two-thirds, hence one-third in one year seems reasonable,” she said. Miti on Monday told Dewan Negara that the RM46.1 billion of realised investment involved 445 projects and created 29,693 jobs. The ministry said this is encouraging, considering that the projects had been implemented in less than the usual 18-to-24-month period. Miti also said approved investment refers to investment planning for the capital expenditure of a project in the long term, Economists deem 30% realisation of approved investments in manufacturing sector in 2023 reasonable BY CHESTER TAY theedgemalaysia.com Bernama including the cost of purchasing land, factories, machines, machinery and others. CGS International Securities Malaysia head of economics Nazmi Idrus said the faster implementation last year could be attributable to revival of investment interest in the second half of 2023. “Not surprising [about Miti realising one-third of approved investment in 2023], as in 3Q2023 and 4Q2023 we saw a revival in investment interest into Malaysia, particularly from China or those seeking an alternative to China,” he said. University Malaya faculty of business and economics associate professor Dr Lau Wee Yeap also said unlike the services sector, approved investment for manufacturing activities would take a longer time to realise. “I think it takes time for the approved projects to be implemented...it depends on a lot of factors. [It is] reasonable that building factories and getting everything ready for production takes time. Maybe projects related to the services sector can be implemented faster,” he said. Datuk Seri Anwar Ibrahim’s administration has been touting that approved investment rose 23% to a record high of RM329.5 billion in 2023, of which 57.2% was from foreign capital while 42.8% was from domestic sources. The services sector constituted the largest portion of total approved investment in 2023, amounting to RM168.4 billion or 51.1%, followed by the manufacturing sector’s RM152 billion or 46.1% and the primary sector’s RM9.1 billion or 2.8%. As the first quarter of 2024 came to a close, economic trackers will be keen to watch if the country could beat its record last year, amid a mixed element of external geopolitical uncertainties, weakening ringgit, expectations towards government’s austerity measures and the several boycott initiatives against certain businesses over the past few months. Read also: Export mission in China yields RM64.13 mil in sales — Matrade sian Investment Development Authority. He said governance for planning and completing projects through the economic corridor authorities also needs to be refined by the relevant ministries prior to approvals. Therefore, the meeting agreed to establish an executive committee (exco) to study and make decisions on all operational matters for ECER development. “The formation of this exco will enable the ECERDC to focus more on strategic and policy matters in the ECER socioeconomic development,” he added.

tUESday A PRIL 2, 2024 4 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): Foreign selling of Malaysian equities extended for a fifth week, with a 39% higher outflow of RM435.1 million last week, from RM313.8 million the prior week. In its weekly fund flow on Monday (April 1), MIDF Research said the three-day net buying streak by the foreigners ended last Monday (March 25), amounting to RM13.7 million. The research house said that on last Monday, official data revealed that Malaysia’s leading index expanded by 3.2% year-on-year in January 2024, indicating a more promising outlook in the forthcoming months. “However, starting from last Tuesday onward, net selling resumed. “The sectors with the highest net foreign inflows last week were property (RM87.1 million), construction (RM20.2 million), and energy (RM16.9 million), while the sectors that recorded the highest net foreign outflows were financial services (RM210.8 million), consumer products and services (RM123.3 million), and plantation (RM94.7 million),” it said. MIDF said that in contrast, local institutions persisted in their net buying trend for the fifth consecutive week, with a net purchase of RM587.7 million. It said unlike foreign investors, they recorded a net selling of RM11.9 million last Monday, followed by a net buying of RM599.6 million from last Tuesday to last Friday. “Local retailers sustained their net selling streak last week, totalling RM152.7 million, selling every trading day for the past 16 days,” it said. MIDF said the average daily trading volume (ADTV) decreased for retail investors by 0.9% and institutional investors by 0.7%. However, it said foreign investors recorded a slight increase of 0.5%. Foreign selling of Malaysian equities rose 39% to RM435.1 mil last week, says MIDF KUALA LUMPUR (April 1): The Malaysian manufacturing sector saw a further moderation in March as demand conditions remained muted. In a statement on Monday, S&P Global Market Intelligence said slowdowns were more pronounced for new orders, output and employment, while business confidence reached a seven-month low. It said there was also a renewed improvement in vendor performance, as firms mentioned that suppliers were able to fulfil orders amid softer demand. It said that on the price front, the rate of input cost inflation ticked higher at the end of the first quarter to reach the highest in 2024 so far, though this did not translate to higher charges as output prices were unchanged. The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) eased from 49.5 in February to 48.4 in March. S&P said the reading therefore signalled a slight moderation in the health of the sector. The historical relationship between the PMI and official gross domestic product data indicates that the first quarter of 2024 will likely see continued growth, while the data are also consistent with a slight improvement in official manufacturing production on an annual basis. New orders eased for the 19th month running in March amid weak demand. The reduction quickened from that seen in February and was the most pronounced in 2024 so far. Muted demand was also reported in international markets, where sales moderated for an eleventh consecutive month. In line with the picture for new orders, production softened to the greatest extent in three months, with the rate of reduction solid overall. Concurrently, employment was scaled back for the third consecutive month in March. S&P said while the rate of job shedding was only marginal, it was the steepest seen in four months as firms reduced headcount in line with capacity requirements. Moreover, firms were again able to reduce their backlogs of work given the muted demand environment, and the rate of depletion was the most pronounced since last October. Purchasing activity, stocks of inputs and inventories of finished goods were all scaled back at the end of the first quarter, with only stocks of purchases seeing the rate of moderation ease on the month. That said, firms saw shorter delivery times for the second time in three months during March. The rate of improvement was only marginal, yet the most marked since May 2023 amid less pressure on suppliers given the muted demand environment. The rate of input cost inflation ticked up to a three-month high amid currency weakness and higher prices for raw materials globally. The rate of inflation remained softer than the series average, however. On the other hand, prices charged for manufactured goods were unchanged from February, ending a seven-month sequence of inflation. Hopes of a stronger improvement in demand were key to optimism regarding the 12-month outlook for output at the end of the first quarter. The overall level of confidence eased to the softest since last August, however, as manufacturers highlighted concerns regarding the timing of a hoped-for recovery in demand. S&P Global Market Intelligence economist Usamah Bhatti said Malaysian manufacturers remained under pressure in March, as the latest PMI data signalled that the sector sank slightly deeper into moderation, following positive signs at the start of 2024. He said new orders, output and employment were all scaled back to a greater extent, and at the most pronounced rates in the year-to-date. “The muted demand environment meanwhile allowed for a supplier improvement, as delivery times shortened to the greatest extent in 10 months. “Meanwhile, despite another slight pick-up in input price inflation, prices charged for Malaysian manufactured goods were unchanged as some firms lowered output prices in an attempt to stimulate sales. “Firms remained hopeful of an eventual improvement over the coming year, though concerns were raised about how long the current demand weakness would persist for. As a result, business optimism faltered to a seven-month low,” said Bhatti. Malaysian manufacturing saw further moderation in March by Surin Murugiah theedgemalaysia.com by Surin Murugiah theedgemalaysia.com

TUESDAY APRIL 2, 2024 5 THEEDGE CEO MORNING BRIEF

tUESday A PRIL 2, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): Boustead Heavy Industries Corp Bhd’s (BHIC) planned disposal of its 20.77% stake in the troubled Boustead Naval Shipyard Sdn Bhd (BNS, now known as Lumut Naval Shipyard Sdn Bhd) to the Ministry of Finance (MOF) for RM1 has been extended for another month to April 30. According to BHIC in a bourse filing on Monday, the sixth extension, mutually agreed upon by the company and MOF, affords the parties additional time required to fulfil the conditions precedent for the deal. “For avoidance of doubt, all other terms and conditions of the SSA (share sale agreement) remain unchanged,” it added. Cumulatively, the deal between BHIC and the MOF has been extended by nearly seven months since the initial deadline for the fulfilment of conditions precedent of Oct 3, 2023. The initial deadline of Oct 3, 2023 was first extended to Nov 1, and subsequently to Dec 1, then to Dec 31, followed by Jan 31, 2024, and most recently to the previous deadline of March 31. The disposal by BHIC, which is 73.16% owned by the Armed Forces Fund Board (LTAT), of its stake in BNS BHIC’s RM1 disposal of BNS stake to MOF extended for yet another month, marking sixth extension KUALA LUMPUR (April 1): Malaysia Venture Capital Management Bhd (Mavcap) said on Monday that it aims to raise the country’s venture capital total funding value by 85% to US$1.4 billion (RM6.8 billion) by 2030. Total funding was US$758 million as of 2022 and still significantly lower than Singapore’s US$9.47 billion, according to Mavcap chief operating officer Noor Amy Ismail. However, Malaysia’s compounded annual growth rate (CAGR) is 44% over 2018-2022, she noted. “We still have a lot of potential with our current CAGR compared to Singapore’s CAGR of 13.7%,” she told a media conference at the launch of the Malaysia Venture Capital Roadmap (MVCR). Under MVCR, the targeted total funding round will also translate into a higher target of VC penetration rate of up to 0.35% by 2030 from 0.19% in 2022, Noor Amy said. Malaysia already has over 3,000 startups and the country is targeting to have 15,000 startups by 2030, she said. Meanwhile, Science, Technology and Innovation Minister Chang Lih Kang, who was also present at the launch, said that MVCR will play a crucial role to make Malaysia a leading hub for VC by 2030. Malaysia’s ranking in the VC and private equity country attractiveness has declined Mavcap aims to raise venture capital total funding value to US$1.4 bil by 2030 by Anis Hazim & Luqman Amin theedgemalaysia.com by Izzul Ikram theedgemalaysia.com is part of the government’s plan to assume full control of the RM9.13 billion littoral combat ship (LCS) project, which BNS failed to deliver on time and at the initially budgeted cost. According to BHIC’s previous disclosure, the divestment is contingent on four conditions precedent, one of which involves the execution of a conditional agreement for inter-company trade receivables reorganisation between BHIC and BNS. The agreement aims to settle the repayment of RM383.94 million or any other sum owed by BNS to BHIC. Other conditions include obtaining the necessary written consent from BNS’ lenders and BHIC’s financiers or creditors. The deal is also subject to the completion of a due diligence review and the satisfaction of the MOF through the undertaking and completion of all required remedial actions. The MOF, via Ocean Sunshine Bhd, owns the remaining 79.23% of BNS. It is understood that the government-linked company acquired a 68.85% stake in the shipbuilder from Boustead Holdings Bhd and another 10.38% stake from LTAT. from 19 to 20 in 2023 and the country “needs to rise again and be competitive as the preferred VC hub in the region,” Chang said in his keynote address at the launch. Chang added that MVCR will also act as an instrument in guiding fund allocation decisions for Malaysian startups. “We cannot rely solely on the government, given its limited funds. Therefore, if we depend entirely on government funding, it can only be highly selective, supporting specific sectors or companies aligned with the national agenda,” he added. MVCR is built upon three strategic pillars — funding, regulatory reform and capacity building. For the funding, MVCR emphasises alMalaysia’s venture capital funding (2018-2022) Source: Malaysia Venture Capital Roadmap 2030 2018 2019 2020 2021 2022 Total funding value (US$ million) 0 200 400 600 800 176 101 179 764 758 location of funds by government agencies and private investors to key sectors critical to Malaysia’s economic development. On regulatory reform, the roadmap calls for a clear governance structure, comprising policy oversight and development mechanisms to ensure a conducive regulatory environment for VC activities. Capacity building, meanwhile, is aimed at promoting an inclusive ecosystem that attracts both local and foreign talents, recognizing that their perspectives are crucial for sustainable growth and innovation. Zahid Izzani/The Edge

tUESday A PRIL 2, 2024 7 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): The World Bank on Monday maintained its forecast for Malaysia’s economy to grow 4.3% this year, as household spending accelerates amid moderate inflation, but flagged narrow fiscal space and potential downside from external risks. Malaysia’s gross domestic product (GDP) will likely expand 4.3% this year, the multilateral agency said in its East Asia and Pacific April 2024 Economic Update report, unchanged when compared to its October 2023 forecast. For 2025, the World Bank expects the country’s economic growth pace to pick up slightly to 4.4%. “In 2024, growth is expected to pick up, as the risk of a global recession recedes,” the World Bank said. “The recovery in the tech cycle, which could boost electric and electronics exports, could also have positive spillovers to growth.” The World Bank’s forecast is in line with Malaysia’s official projection of growth of between 4% and 5% in 2024, versus a 3.7% expansion in 2023. World Bank East Asia and Pacific chief economist Aaditya Mattoo said Malaysia’s growth will be anchored by domestic demand, while it also stands to benefit from the recovery in the export market. Private consumption is expected to grow by 5.2%, from 4.7% in 2023, driven by supportive labour market conditions and continuous household income support measures. In addition, gross exports are projected to rebound to 4.8%, from a contraction of 7.9% last year, in tandem with the expected recovery in global trade. “Given Malaysia’s exposure to China, the slowing growth in China is going to be a problem. “But in general, Malaysia is going to benefit from what is referred to as the technology cycle, which boosts electrical and electronics exports, and it is already benefiting from the significant relocation of semiconductor production from China,” Mattoo said. Acknowledging that China is currently facing challenges as it tries to rebalance its economy and improve the quality of its growth, Mattoo expressed optimism that China’s growth will be “sustained and higher” once it negotiates these difficult transitions. Earlier, Mattoo in a presentation shared that the developing East Asia and Pacific region is growing faster than the rest of the world, but slower than it was before the Covid-19 pandemic. While recovering global trade and easing financial conditions will support economies in the region, increasing protectionism and policy uncertainty will dampen growth, he said. “The region is growing faster than most other regions of the world. But most countries in the region today are growing slower than before — outperforming but underachieving with respect to its own potential,” Mattoo said in a virtual briefing, in conjunction with the release of the report. The World Bank defines developing East Asia and Pacific countries as Cambodia, China, Indonesia, the Lao People’s Democratic Republic, Malaysia, Mongolia, Myanmar, Papua New Guinea, the Philippines, Thailand, Timor-Leste, Vietnam, and the Pacific Island countries. According to the report, the region’s growth is projected to ease to 4.5% in 2024, from 5.1% last year. But excluding China, growth in developing East Asia and Pacific countries is projected to pick up to 4.6% this year, up from 4.4% in 2023. In contrast, growth in China is projected to moderate to 4.5% this year, from 5.2% in 2023, as high debt, a weak property sector, and trade frictions weigh on the economy. Read also: Govt committed to ensuring ringgit remains strong — Amir Hamzah World Bank maintains M’sian GDP growth forecast at 4.3% for 2024, flags external risks KUALA LUMPUR (April 1): The Ministry of Energy Transition and Water Transformation has kicked off the bidding process for the fifth round of the Large Scale Solar programme (LSS5) or LSS-Peralihan Tenaga SuRiA, offering a total generation quota of 2,000MW. According to a notice on the tender and request for proposal (RFP) from the Energy Commission (EC) sighted by The Edge, four packages will be offered, ranging from permitted generation capacities of as low as 1MW to as high as 500MW. Package 1, taking up 250MW of the total quota, comprises rooftop or ground solar power plants, with a permitted generation capacity of 1MW to 10MW, and will be only available to Bumiputera companies. Package 2, also with a quota of 250MW comprising rooftop or ground solar power plants, but with a permitted generation capacity of 10MW to 30MW, will be open to bids from companies that have at least 51% Bumiputera ownership. As for Packages 3 and 4, which offer the biggest permitted generation capacities Energy Commission opens LSS5 up for bidding, targets 2,000MW of solar generation under LSS5, they are open to companies that are at least 51% domestically owned. Package 3, with a total quota of 1,000MW, comprises rooftop or ground solar power plants, with a permitted generation capacity of 30MW to 500MW. Package 4, with a 500MW quota, comprises floating solar power plants, with permitted generation capacities of 10MW to 500MW. The solar power plants to be developed under LSS5 are scheduled to be operational in 2026, according to the EC. The regulator is inviting industry players to participate in LSS5’s bidding process, in line with the criteria set in the RFP document. “The RFP document will be sold from April 1 at 9am, until April 16 at 5pm, through the EC website at https://www.st.gov.my/, at a price of RM3,000 each,” the notice read. “Physical submission of the RFP document must be sent and received by the EC no later than July 25, 2024 at 5pm, and any changes to the method of submission will be notified through the EC website,” it added. by Izzul Ikram theedgemalaysia.com by Emir Zainul theedgemalaysia.com The Edge file photo

tUESday A PRIL 2, 2024 8 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): Sin-Kung Logistics Bhd said on Monday it had signed an underwriting agreement with M&A Securities Sdn Bhd for its upcoming initial public offering (IPO) on the ACE Market. The agreement marks another step forward for the IPO since the company, which mainly provides trucking services focusing on airport-to-airport road feeder services, filed a draft prospectus in July 2023. “The IPO is timely, as it will enable the company to gain access to the Malaysian capital market to raise funds to facilitate the continued growth and development of our trucking, container haulage, as well as warehousing and distribution services,” said Sin-Kung managing director Alan Ong. Sin-Kung currently owns about 460 commercial vehicles for trucking, container haulage, warehousing and distribution, as well as ACE Marketbound Sin-Kung Logistics signs underwriting agreement with M&A Securities KUALA LUMPUR (April 1): K-One Technology Bhd, whose share price soared severalfold back in 2020 when it announced the licence granted by Nasa JPL to make ventilators during the Covid-19 pandemic, is proposing a diversification into the healthcare industry to reduce its reliance on existing business segments. K-One noted that the company has started developing and manufacturing medical and healthcare products for customers under its electronic manufacturing services (EMS) business. It added that it is currently pursuing development of its own brand manufacturing (OBM) products such as mechanical ventilators. However, it flagged several risks arising from the proposed diversification, including global economic downturns, limited experience in the healthcare product business and dependency on distribution agreements. The company’s current core businesses comprise EMS, which contributed about 55% of its total revenue for the past three financial years, and cloud computing (contributing about 45% of total revenue). In a bourse filing on Monday, K-One said that it expects the healthcare products K-One Technology proposes to diversify into healthcare business by Hee En Qi theedgemalaysia.com by Jason Ng theedgemalaysia.com business to contribute 25% or more to its future net profit. K-One attributed its losses in the financial year ended Dec 31, 2021 (FY2021) and FY2022 to its core EMS business. It said its EMS business was impacted by weak consumer demand amid the Covid-19 pandemic, as well as higher logistics and electronic chip costs due to supply chain disruptions amid the Russia-Ukraine conflict. Nevertheless, it managed to turn a net profit of RM351,000 in FY2023, thanks to its cloud business, compared to a net loss of RM100,000 in FY2022. Moving forward, K-One has proposed to scale up its healthcare product business as an alternative source of revenue and income stream. Since 2021, the group said it has progressively obtained appointments from foreign manufacturers to distribute healthcare products in Malaysia, including Covid-19 test kits, oximeters and supplements. K-One’s share price rocketed to a high of 63 sen in August 2020 from a low of 9.5 sen in March the same year. Since then, the stock has lost its footing, dropping below 20 sen. It closed at 14.5 sen on Monday, valuing the group at RM120.6 million. other logistics-related businesses. The company also operates five warehouses in the central and northern regions of Peninsular Malaysia. The company has earmarked proceeds from the IPO for expansion of warehousing and distribution services, repayment of bank borrowings, purchase of commercial vehicles, working capital, and to defray estimated listing expenses. Meanwhile, proceeds from the offer for sale will go entirely to the selling shareholders, including Ong and his sister Angeline Ong Lay Shee, who is an executive director. The IPO involves a public issue of 200 million new shares and an offer for sale of 103.5 million existing shares, according to the draft prospectus filed earlier. All in all, the IPO is offering up to a 25.3% stake in the company. The public issue allocates 60 million shares to the public, and 45 million shares to eligible persons, with the remaining 95 million shares reserved for private placement to Bumiputera investors. Under the agreement, M&A Securities will underwrite a total of 105 million new shares made available to the Malaysian public and eligible persons under the socalled pink form allocations. The offer-for-sale tranche meanwhile sets aside 55.0 million shares for Bumiputera investors, and another 48.5 million shares for selected investors, both to be done through private placement. M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO. (From left) M&A Securities Sdn Bhd head of corporate finance Gary Ting, M&A Equity Holdings Bhd managing director Datuk Bill Tan, as well as Sin-Kung Logistics Bhd MD Alan Ong and executive director Angeline Ong Lay Shee at the underwriting agreement signing ceremony.

TUESDAY APRIL 2, 2024 9 THEEDGE CEO MORNING BRIEF

tUESday A PRIL 2, 2024 10 The E dge C E O m o rning brief home news In brie f Kerjaya Prospek gets RM33.2 mil piling job for Andaman Island apartment project KUALA LUMPUR (April 1): Construction outfit Kerjaya Prospek Group Bhd has secured a RM33.19 million piling and earthworks job for a proposed service apartment in Pulau Andaman, Penang from a related party. According to a bourse filing on Monday, Kerjaya Prospek received the contract from Persada Mentari Sdn Bhd, a 70.4%-owned unit of property developer Eastern & Oriental Bhd (E&O). The contract will begin on June 17, 2024, and is expected to be completed within 12 months from the start date, Kerjaya Prospek said. The job is deemed a recurrent related party transaction given that Datuk Tee Eng Ho, Kerjaya Prospek’s non-independent non-executive chairman and major shareholder, is also E&O’s executive chairman and major shareholder of E&O. — by Izzul Ikram AZRB bags RM315.9 mil contract for Istana Abu Bakar renovation KUALA LUMPUR (April 1): Ahmad Zaki Resources Bhd (AZRB) said it has been awarded a contract worth RM315.90 million by the Public Works Department for upgrading and renovation works on Istana Abu Bakar in Pekan, Pahang. In a bourse filing on Monday, the company said its wholly-owned subsidiary Ahmad Zaki Sdn Bhd (AZSB) received the letter of acceptance and that the contract would be valid for 30 months, starting from April 1, 2024. The construction company revealed in its quarterly result release that its orderbook stood at RM803 million as at end-2023, which will be able to sustain the group for the coming year. — by Hee En Qi Berjaya Corp completes acquisition of Yokohama land for Four Seasons project KUALA LUMPUR (April 1): Berjaya Corp Bhd (BCorp) said it has finalised the acquisition of eight parcels of freehold land totaling 20,977.15 sq metres or 5.18 acres in Yokohama, Japan for ¥12.61 billion (RM407.3 million). The group said its wholly-owned subsidiary, Berjaya Yokohama Hospitality Asset TMK (BY-TMK), had on March 29 entered into an agreement with the city of Yokohama for the acquisition of the waterfront property. The acquisition, initially announced in December 2022, was intended for the development of the Four Seasons Yokohama Harbour Edge project, consisting of a luxury hotel, upscale residences, an aquarium and retail outlets, for ¥12.66 billion (RM408.82 million). — by Choy Nyen Yiau MISC signs charter contracts for three LNG carriers with QatarEnergy KUALA LUMPUR (April 1): MISC Bhd, which owns one of the world’s largest fleets of petroleum shipping vessels, said on Monday it had secured long-term contracts for three liquefied natural gas (LNG) carriers from QatarEnergy. The contract is for time charter of three newbuild LNG carriers to be built by Samsung Heavy Industries Co Ltd, MISC said in an exchange filing on Monday. The carriers will be chartered by QatarEnergy for a firm 15 years from 2026 onwards, the company said. The company did not provide financial details. QatarEnergy, the state-owned energy company of Qatar, is involved in exploration, production, refining, transport, and storage of oil and gas. — by Jason Ng EVD wins mechanical and engineering contracts worth RM19.5 mil KUALA LUMPUR (April 1): EVD Bhd has secured two contracts totaling RM19.5 million for mechanical and engineering (M&E) works, comprising the construction of a wastepaper warehouse and associated facilities, as well as the development of a power generation facility in Kuala Langat, Selangor. According to EVD’s bourse filing, the letter of award was granted to its wholly-owned subsidiary EVD Engineering Sdn Bhd by Sing Foong Niap Engineering Sdn Bhd. The first project entails M&E works for a wastepaper warehouse, including its coal warehouse, office and distribution room, owned by Best Eternity Recycle Technology Sdn Bhd, amounting to RM3.52 million, with a duration of three months from the commencement date. Meanwhile, the second project involves M&E works for the power generation facility of a recycle pulp and packaging paper plant owned by BERT, with a contract sum of RM15.98 million and a duration of 9.5 months from the commencement date. These contracts are deemed recurrent related party transactions of a revenue or trading nature, given that Datuk Wong Sak Kuan, a substantial shareholder of EVD with a 6.23% stake, is also the director and largest shareholder of Sing Foong Niap Engineering, holding a 99.17% stake. — by Choy Nyen Yiau Betamek to acquire tunerand-stereo maker Sanshin for RM13.44 mil KUALA LUMPUR (April 1): Electronic manufacturing services firm Betamek Bhd said on Monday it is acquiring tuner and car stereo maker Sanshin (Malaysia) Sdn Bhd for RM13.44 million from its Japanese owner. The addition of Sanshin’s products and its production capacity is expected to broaden Betamek’s offerings and generate “favourable” profit margins, the company said in an exchange filing. Apart from a wider product range, Sanshin also offers access to clients in Japan, Hong Kong and Thailand, it noted. Betamek will have immediate entry into Sanshin’s “wellestablished” market for automotive, home appliance and industrial products, it said. Further, Sanshin is expected to support Betamek’s production of new products to be developed under a joint venture with Shenzen Zhonghong Technology Co, it said. “The proposed acquisition would further strengthen Betamek Group’s position in the electronic manufacturing services industry by enabling the group to expand its range of product offerings and its customer profile,” Betamek said. — by Jason Ng

tUESday A PRIL 2, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): Defence lawyer Tan Sri Muhammad Shafee Abdullah has accused former 1Malaysia Development Bhd (1MDB) general counsel Jasmine Loo Ai Swan of giving “self-serving” testimony, on the witness stand in the 1MDB-Tanore trial on Monday, to save herself, fugitive Low Taek Jho (Jho Low), and other associates. Loo, the prosecution’s 50th witness who was subject to cross-examination by the lawyer representing former prime minister Datuk Seri Najib Razak, was asked about the inner workings of 1MDB, specifically a sham murabaha financing agreement worth US$1 billion (RM4.70 billion) in a joint-venture (JV) company called 1MDB PetroSaudi Ltd, which was eventually siphoned out to shell companies run by Jho Low and his associates. Loo maintained that at the time of these transactions taking place in 2010 to 2011, she had just entered the company as a general counsel, and had very little knowledge of the transactions. Shafee: Your claim is self-serving, as you yourself have been under severe investigation, and this [response] is self-serving to save yourself, Jho Low, and other associates. Loo: I disagree, as I am telling the court what transpired. Earlier in the trial before judge Datuk Collin Lawrence Sequerah, Shafee claimed that PetroSaudi International Ltd (PSI) did not exist in Saudi Arabia, and that Loo did not do her due diligence as a general counsel to ascertain this fact. Loo responded by saying that this was work that was done by 1MDB since 2009, and that the then management should have done their due diligence, as she had just entered the company. “I relied on the work that had already been [carried out], and the signed agreements that had already taken place,” she said. However, Shafee countered this by saying that there are many “conmen” in the world, and therefore Loo should have done her own separate due diligence on this matter. Loo responded by saying that she had the impression that the PSI Shafee was referring to was legitimate at the material time. Shafee: I’m putting it to you that it cannot be there. The company didn’t exist. Loo: There must be something — PetroSaudi International Ltd is a Saudi company. Shafee: [The fact that] it was incorporated in Saudi is a complete lie. The company was incorporated in the Seychelles, Shafee revealed to the court. The senior lawyer then asked Loo if it was Najib’s job as the then prime minister to check if PSI existed in Saudi Arabia, to which she responded with “No”. Shafee: Was it the PM’s job to determine that PSI was a Saudi [entity]? Loo: I wouldn’t know. Shafee: Was it his job? Loo: No. Prior to the murabaha financing, 1MDB had borrowed US$1 billion purportedly to invest in 1MDB PetroSaudi. The money was to be paid into the account of the JV company. PSI was to take up 60% of the shares in the alleged JV by injecting certain assets of dubious value. The US$1 billion was to represent 1MDB’s contribution for its 40% shareholding. However, instead of being paid into the JV company’s account, US$700 million of the US$1 billion was diverted into the by Timothy Achariam & Tarani Palani theedgemalaysia.com Najib’s lawyer says Loo’s testimony self-serving to protect herself and Jho Low account of a company called Good Star Ltd, which in truth had nothing whatsoever to do with the JV. The company was incorporated in the Seychelles on May 18, 2009, five months before the JV agreement was entered into. The company was owned and controlled by Jho Low. The balance of US$300 million went into the JV, 1MDB PetroSaudi Cayman. In order to hide the failure of the JV and misrepresent the value of 1MDB’s investment overseas, a murabaha financing agreement (MFA) was made between 1MDB PetroSaudi and 1MDB in June 2010, but backdated to March 22, 2010 to avoid audit concerns. Under the MFA, 1MDB was required to pump another US$1.5 billion into the 1MDB-PetroSaudi JV to finance the obligations of the MFA and 1MDB, caused by the fraudulent transfer of US$500 million from 1MDB to the JV’s account. In this trial, Najib is charged with four counts of abuse of power for using his position as the then prime minister and finance minister as well as chairman of 1MDB’s board of advisers to receive gratifications worth RM2.28 billion, and 21 counts of money laundering amounting to over RM4.3 billion. Former prime minister Datuk Seri Najib Razak (centre) is charged with four counts of abuse of power for using his position as the then prime minister and finance minister as well as chairman of 1Malaysia Development Bhd’s board of advisers to receive gratifications worth RM2.28 billion, and 21 counts of money laundering amounting to over RM4.3 billion. Zahid Izzani/the edge

tUESday A PRIL 2, 2024 12 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): Former Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli told the Sessions Court here on Monday that in his WhatsApp messages that he exchanged with businessman G Gnanaraja on Aug 17, 2017, his reference to “big boss” in the messages did not only refer to former prime minister Datuk Seri Najib Razak. Zarul Ahmad, who was testifying in his impeachment hearing as part of former Penang chief minister Lim Guan Eng’s undersea tunnel graft trial, said he used “big boss” to also refer other people. Asked by Lim’s lead counsel, Haijan Omar, on what he meant in his conversation with Gnanaraja on Aug 17, 2017, Zarul Ahmad, who is a key witness in the trial, disagreed that his use of the words “chocolates” and “big boss” only referred to the RM2 million handover. Haijan: There was only one ‘chocolate’ in your conversation with Gnanaraja, where you referred to the chocolates as the RM2 million handover? Zarul Ahmad: I disagree. Haijan: The chocolates were for the big boss only? Zarul Ahmad: I disagree. Haijan:The big boss you referred to here was the PM (Najib) and not Guan Eng? Zarul Ahmad: I disagree. Previously in 2022, the former director testified that RM4 million was involved in the handover to Gnanaraja. Of this, RM2 million was withdrawn from his company to be paid to Najib, and the other RM2 million, which he withdrew from the safe, was to be paid to Lim. Zarul Ahmad said the payment to Najib was to secure the former prime minister’s help to resolve his case with the Malaysian Anti-Corruption Commission (MACC), and also maintain close ties with Najib, in order for the company to receive future projects. The purported RM2 million bribe to Lim, meanwhile, was said to be part of the RM3.3 million that Zarul Ahmad gave to the former Penang chief minister, where the RM2 million was allegedly paid to the DAP politician in 2017 to prepare for the general election in May 2018. The impeachment proceedings were ordered by Sessions Court judge Azura Alwi in January this year, due to inconsistencies in Zarul Ahmad’s testimony in the trial and in the statements which he had given to the MACC, which were recorded in Gnanaraja’s trial in Shah Alam, where Gnanaraja was charged with cheating. However, in that case, Gnanaraja later pleaded guilty to the offence under the Companies Act, for which he was fined RM230,000 by the Shah Alam Sessions Court. Zarul Ahmad agreed with Haijan’s co-counsel, RSN Rayer, as to the WhatsApp messages he had exchanged with Gnanaraja on July 23, 2017, where Zarul Ahmad was informed that Gnanaraja was celebrating a birthday cutting cake with “big boss”, and this referred to Najib, as the former prime minister’s birthday falls on July 23. However, Zarul Ahmad disagreed with Rayer that the term “big boss” was consistently used to refer to Najib, as he said he had used it on other people. Prosecution objects to line of questioning The prosecution from the MACC, led by Datuk Wan Shaharuddin Wan Ladin, objected to the defence’s repeated questions for Zarul Ahmad. Wan Shaharuddin said the questions posed in proceedings on Monday were similar to those that were put by the defence during the main trial, and should be differentiated from the impeachment proceedings. He queried the repeated questioning, which ran along similar lines, claiming that it was not relevant to the impeachment matter and would only delay the trial. “Such questions on the WhatsApp messages are not relevant, and should be asked by Hafiz Yatim theedgemalaysia.com Key witness in Guan Eng’s undersea tunnel trial says ‘big boss’ does not necessarily refer to Najib when the trial resumes,” the deputy public prosecutor pointed out. However, Haijan said Zarul Ahmad had to answer them. Zarul Ahmad also told the judge that he had been testifying for over a year, and reiterated that he had been giving the same answers. “It’s already been a year. I am trying to tell the truth, and the cross-examination over my impeachment is testing the threshold of my patience. I am not well (the witness is suffering from cancer). What has been asked was addressed during cross-examination by Gobind Singh Deo previously,” the witness told Azura. “I do not care about the outcome of this trial,” he added. This resulted in Azura telling Zarul Ahmad to be patient, and just answer the questions. Lim, 62, the Member of Parliament for Bagan, is accused of using his position as the then Penang chief minister to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Zarul Ahmad, in return for aiding the businessman’s company to secure the project. Lim, who is also the DAP chairman, is accused of accepting RM3.3 million in kickbacks from Zarul Ahmad. Lim also faces two counts of dishonest misappropriation of property in releasing two plots of state-owned land, cumulatively worth RM208.75 million, to Ewein Zenith Sdn Bhd and Zenith Urban Development Sdn Bhd — two property companies linked to the controversial undersea tunnel project. The hearing before Azura resumes on Tuesday. Lim Guan Eng (second from left), 62, the Member of Parliament for Bagan, is accused of using his position as the then Penang chief minister to solicit a 10% cut in the RM6.3 billion undersea tunnel project’s profits from Datuk Zarul Ahmad Mohd Zulkifli, in return for aiding the businessman’s company to secure the project Zahid Izzani/The Edge

TUESDAY APRIL 2, 2024 13 THEEDGE CEO MORNING BRIEF Stay invested over the long term. A consistent strategy has allowed us to consistently outperform the benchmark over the past decade. Explore how to diversify your portfolio with our Private Wealth Manager today. Our Consistency Can Be Your Advantage Disclaimer: A copy of the Master Prospectus (MP) dated 19 December 2022 has been registered with the Securities Commission Malaysia (SC), who takes no responsibility for its contents. The registration of the MP and lodgement of the Product Highlight Sheet (PHS) does not amount to nor indicate that the SC has recommended or endorsed the Fund. The MP is a replacement MP that supersedes and replaces the MP dated 3 June 2021. This advertisement has not been reviewed by the SC. Investors are advised to read and understand the contents of the MP and PHS before making any investment decision. Amongst others, investors should also consider the fees and charges involved. The prices of units and distributions payable, if any, may fall and rise. Past performances of the Fund are not indicative of future performance. Prices can go down as well as up and you may not get back the amount you originally invested. Investors are advised to consider the different types of risks that may affect the unit trust fund. For more information concerning certain risk factors, please refer to the MP and PHS. These are available at offices of Areca Capital Sdn Bhd and its authorized distributors. Investors have the right to request for a copy of the MP and PHS and they can download the softcopy at www.arecacapital.com. Any issue of units to which the MP relates will only be made on receipt of a form of application referred to and accompanying a copy of the MP. This Fund may not be suitable for all investors and if in doubt, investors should consult a professional adviser and completed a suitability assessment before making any investment. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see lipperfundawards.com. Based on the Fund’s portfolio returns as at 31 January 2024, the Volatility Factor (VF) for this Fund is 11.4 and is classified as “High” (source: Lipper). “High” includes funds with VF that are above 10.965 but not more than 14.455. The VF means there is a possibility for the Fund in generating an upside return or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every six months. The Fund’s portfolio may have changed since this date and there is no guarantee that the Fund will continue to have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC. Areca equityTRUST Fund Best Fund Over 5 Years Best Fund Over 10 Years Equity Malaysia LSEG Lipper Fund Awards Malaysia 2024 Winner Areca equityTRUST Fund *Fund Performance #Average Returns of Peer Group *Fund performance is calculated based on NAV to NAV and assumes reinvestment of distributions. The Fund was launched on 23 April 2007. #Average Returns of the funds in Peer Group under Lipper Classification “Equity Malaysia” Non-Islamic. There are total of 67 funds under this category. Source: Lipper as at 29 February 2024 Since Inception 2007 524% 144% 5 Years 81% 31% 10 Years 188% 46% Tel +603 7956 3111 Fax +603 7955 4111 Email [email protected] For more information, please visit our website at www.arecacapital.com. ARECA CAPITAL SDN BHD 200601021087 (740840-D) 107, Blok B, Pusat Dagangan Phileo Damansara I, No.9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia. Petaling Jaya · Pulau Pinang · Ipoh · Melaka · Kuching · Johor Bahru · Kota Kinabalu

tUESday A PRIL 2, 2024 14 The E dge C E O m o rning brief home GEORGE TOWN (April 1): Non-governmental organisations (NGOs) that continue to oppose the Penang Light Rail Transit (LRT) Mutiara Line project have been urged to consider the benefits of the project, especially in terms of socio-economic development for the people in the long term. Chief Minister Chow Kon Yeow said the project has gone through various processes and extensive engagement sessions involving the public and NGOs before it was approved. “We hope the NGOs opposing the LRT project can see it as a whole; moreover, the project is supported by the people, with over 90% of them expressing support during public engagement sessions. “This is the time for implementation. If there are any issues, they will be managed by the company appointed to implement the project. We hope those still sceptical can look at the bigger picture,” he told a press conference in conjunction with the Aspen-Klippa Penang Bridge International Bridge Marathon 2024 at his office here on Monday. He was commenting on media reports regarding calls by several environmental Penang CM urges critics of state LRT project to ‘look at bigger picture’ SEPANG (April 1): The high-speed rail network connecting Sabah, Sarawak, Brunei and Kalimantan, Indonesia, known as the Trans Borneo Railway project, is still a proposal and has not been offered to any company, said Minister of Transport Anthony Loke. He said the tender to conduct feasibility studies for the project will only be opened in May. “The Trans Borneo Railway project is currently just a proposal, and this year, the government will implement a feasibility study. The Ministry of Transport (MOT) has yet to finalise the tender documents, and the tender for the feasibility study has not yet been offered. “We expect the feasibility study to take nine months, then only we will know if the project could be implemented or not in terms of the commercial, technical and other aspects,” he told reporters after the upgraded transportation hub launching ceremony at Terminal 2 of the Kuala Lumpur International Airport, here on Monday. He advised all parties to be cautious about any announcements by private companies regarding major projects, adding that any mega projects are only considered valid if the government announces them. “If they (private company from Brunei) say they want to build a railway track in Sabah and Sarawak, they certainly need approval from the Malaysian government as well as the state governments of Sabah and Sarawak. So far, there has been no such approval, and we have never negotiated with this company. “So, I would like to advise that any statements or news like this must be verified first because this is confusing the public,” he added. Brunergy Utama Sdn Bhd, a company Bernama Trans Borneo Railway project hasn’t been offered to any party, says transport minister Bernama NGOs, including the Malaysian Nature Society (SAM), for the government to review the proposed LRT due to alleged high costs and excessive estimated usage. Chow said he was aware that the LRT project could not solve 100% of traffic congestion problems on the Pearl of the Orient, but it was part of efforts and a beginning for the state government to help people deal with daily traffic issues. Chow, who is also the state finance, economic development, land and communications committee chairman, said the estimated cost of RM10.5 billion was a projection based on the system and design of the trains to be used. He said the actual cost would be determined after the request for proposal (RFP) was conducted and finalised. Last Friday, the federal government officially took over the Penang LRT project from the state government, following the Cabinet’s approval of the development proposal for the project on March 22. The Mutiara Line LRT, targeted to be operational by 2030, will run from Silicon Island to Komtar and then cross the channel to Penang Sentral in Seberang Perai. based in Brunei, claimed that it would implement the project in two phases, worth some US$70 billion (RM330 billion) and involving a route spanning over 1,600 kilometres with trains capable of reaching speeds up to 350km per hour. Read also: Trans Borneo Railway route should involve Sabah east coast — Mohd Shafie The Edge file photo

tUESday A PRIL 2, 2024 15 The E dge C E O m o rning brief home KUALA LUMPUR (April 1): The Dewan Negara on Monday passed two Bills under the Ministry of Finance (MOF), namely the Supplementary Supply Bill (2023) 2024 and the Supply Bill (Reallocation of Expenditure Allocation) 2024. The two Bills were approved by a majority voice of approval after being presented by Finance Minister II Datuk Seri Amir Hamzah Azizan and discussed by 14 members of the Dewan Negara. When presenting the Supplementary Supply Bill (2023) 2024, Amir Hamzah said the estimated first supplementary operating expenses for 2023 amounted to RM23,479,669,350 for supplemental expenses for services in 2023. “An amount of RM3,692,563,850 is for the surplus transfer from the 2023 Consolidated Revenue Account to the Development Fund, and RM778,632,450 to cover unallocated expenses for 2023. “A total of RM19,008,473,050 is a direct supplemental allocation to ministries and departments that have been given permission to spend more than the allocation in 2023,” he said. Meanwhile, the Supply Bill (Reallocation of Expenditure Allocation) 2024 aims to make provisions for reallocation from the Consolidated Fund amounting to RM648,537,400 for the services and purposes stated in the schedule to this Bill for 2024. According to Amir Hamzah, the allocation request follows the reorganisation of the ministry’s functions in line with the Cabinet reshuffle on Dec 12, 2023 to streamline the organisation and functions of the ministry, in a move to provide the best service to the people and the country in line with the concept of Madani Malaysia. The Supplementary Supply Bill (2023) 2024 was approved on March 20, while the Supply Bill (Reallocation of Expenditure Allocation) 2024 was approved on March 26 in the Dewan Rakyat. Dewan Negara passes two Bills under MOF Putrajaya to review plastic pollution laws, says Nik Nazmi KUALA LUMPUR (April 1): The government has raised the allocation for the targeted subsidy programme of cash aid Sumbangan Tunai Rahmah (STR) Phase 2 by 20% to RM1.5 billion in 2024, from RM1.26 billion last year. A total of 8.4 million Malaysian citizens will receive the payment for STR Phase 2 ranging from RM100 to RM650 starting Wednesday (April 3), according to the Ministry of Finance (MOF) in a statement on Monday. “Insya-Allah (God-willing), the government will further increase cash assistance to the people, in line with the fiscal improvement of the country, including the implementation of targeted subsidies to those who truly need it,” Prime MinisKOTA SAMARAHAN (April 1): The Ministry of Natural Resources and Environmental Sustainability will review related laws to address plastic pollution in the country, said its minister Nik Nazmi Nik Ahmad. He said the existing laws are considered ‘fragmented laws’, where their implementation depends on local authorities (PBT) according to the locality’s suitability and context. “So, based on that, we (the ministry) are looking at how on a global scale through a plastic agreement (in terms of managing policy), we see how the federal government can also enact legislation to address this plastic pollution problem. “How we can make the use of plastics more sustainable, whether by reducing single-use plastic, biodegradable plastics made from organic materials, or other alter Datuk Seri Anwar Ibrahim said. Existing STR recipients and new registrants in the database will receive the payments through bank account via credit, or cash via Bank Simpanan Nasional in stages based on their respective STR eligibility categories. “Starting in 2024, the government has taken a new approach to open registration for STR 2024 throughout the year to provide more opportunities for citizens to benefit from government assistance,” said the PM. The number of eligible recipients is expected to increase continuously this year, taking into account the new application and updating processes carried out throughout the year compared to once a year previously, Anwar added. If an applicant’s name is not in the STR database, they would need to apply to enable the verification process based on the established STR eligibility categories. MOF also reminded STR recipients to always be cautious of unauthorised links from irresponsible parties to obtain information related to the STR programme. Govt raises Sumbangan Tunai Rahmah Phase 2 to RM1.5 bil by Anis Hazim theedgemalaysia.com Bernama Bernama Read also: RM500 special Aidilfitri aid for civil servants, RM250 for pensioners, says Anwar ternatives to replace plastic usage,” he said. He said this to reporters after a dialogue session titled ‘Pathways to Plastic Neutrality: Collaborative Action and Innovative Solution’ organised by Universiti Malaysia Sarawak (Unimas) and Yayasan Hijau Malaysia here on Monday. Nik Nazmi described efforts to address plastic pollution as not very effective, and despite various efforts, the pollution problem remains a major issue in Malaysia. Comparison between STR Phase 2 in 2023 and 2024 STR 2023 STR 2024 Recipients category Payment Allocation Payment Allocation rate (RM) (RM bil) rate (RM) (RM bil) Households (≤ RM2,500) 200 0.60 150-650 0.90 Households (RM2,501-RM5,000) 200 0.20 100-300 0.10 Senior citizens, single senior citizens 100 0.11 150 0.20 Single 100 0.35 100 0.30 Total — 1.26 — 1.50 Source: Ministry of Finance

TUESDAY APRIL 2, 2024 16 THEEDGE CEO MORNING BRIEF

tUESday A PRIL 2, 2024 17 The E dge C E O m o rning brief world TOKYO (April 1): Optimism in Japan’s services sector climbed to a 33-year high in the first quarter on booming tourism and rising profits from price hikes, a central bank survey showed, keeping alive market expectations of another interest rate increase before year end. That rosy mood was somewhat offset by sentiment for big manufacturers souring for the first time in four quarters due in part to auto output disruptions, underscoring Japan’s fragile economic recovery. The survey outcome is among factors the Bank of Japan (BOJ) will scrutinise in its next meeting on April 25-26, when it issues fresh quarterly growth and inflation forecasts. The April projections will draw market attention for any clues on how soon the BOJ could raise interest rates again, after having exited its massive stimulus programme last month. “Business sentiment was good overall and capital expenditure plans are fairly strong. The tankan probably leaves the BOJ with hope Japan will continue to see trend inflation accelerate,” said Tsuyoshi Ueno, an economist at NLI Research Institute. Japan’s service sector mood climbs to 33-year high, leaves scope for more BOJ hikes (April 1): Gold prices extended their record run on Monday as the latest data showing a slowing US inflation trend boosted expectations that the Federal Reserve could deliver its first interest rate cut in June. Lower interest rates reduce the opportunity cost of holding bullion. Spot gold was up 0.7% at US$2,247.48 per ounce, as of 1059 GMT, after hitting an all-time high of US$2,262.19 earlier in the session. US gold futures GCcv1 climbed 1.3% to US$2,268.10. “The slightly lower than expected US inflation figure last Friday is supporting the outlook of a mid-year rate cut by the Fed,” said UBS analyst Giovanni Staunovo. Data on Friday showed US prices moderated in February, keeping a June interest rate cut from the Fed on the table. Fed Chair Jerome Powell said February’s inflation data was “more along the lines of what we want to see.” Growing rate cut expectations, safe-haven demand and central bank purchases amid geopolitical tensions have boosted gold by more than 9% this year. “Markets will now want to see if the payroll data will confirm a soft landing from the job market in the U.S. Ongoing solid demand is helping the yellow metal as well, although higher prices may weigh on jewellery demand,” Staunovo said. Bullion prices have also hit record highs in other currencies, including euros, the yuan, Japanese Yen, Indian rupee and the British pound sterling. by Leika Kihara Reuters “The results open scope for additional BOJ rate hikes.” The headline sentiment index for big manufacturers slid to +11 in March from +13 in December, the tankan showed on Monday, as output disruptions at some Toyota Motor group plants hurt confidence among car, auto parts and steel makers. It roughly matched a median market forecast for a +10 reading. By contrast, the index gauging big non-manufacturers’ sentiment improved to +34 in March from +32 three months ago, the survey showed, slightly exceeding a market forecast of a reading of +33 and increasing for the eighth straight quarter. It was the highest reading since August 1991, when Japan’s economy was booming from an asset-inflated bubble. Sentiment improved at retailers, property developers, construction firms and transportation services due to a surge in inbound tourism and a boost to corporate profits from price hikes, a BOJ official told a briefing. Read the full story Indian gold futures hit an all-time high on Monday, tracking gains in overseas markets, and squeezing demand in the world’s second-biggest consumer of the precious metal, dealers said. “Today’s price action is happening in a very low liquidity environment — most European and many APAC markets are still closed for Easter Monday. So, it would not be surprising to see these moves reverse when participation rebuilds later in the week,” said Ilya Spivak, head of global macro at Tastylive. Spot silver rose 0.4% to US$25.06 per ounce, platinum gained 0.6% to US$913.30 and palladium climbed 0.7% to US$1,022.30. Growing rate cut expectations, safe-haven demand and central bank purchases amid geopolitical tensions have boosted gold by more than 9% this year. Gold hits fresh all-time peak as US data lifts June rate cut hopes by Brijesh Patel Reuters reuters reuters

tUESday A PRIL 2, 2024 18 The E dge C E O m o rning brief world BENGALURU (April 1): Indonesia’s rupiah and stocks hit multi-month lows on Monday after stronger-than-expected inflation data, while other Asian stock markets gained as upbeat China manufacturing data stoked optimism about demand in the world’s second largest economy. The rupiah fell as much as 0.4% to 15,910 per US dollar, its lowest since Nov 1, prompting intervention by the Bank Indonesia (BI) to arrest further declines. The Indonesian benchmark stock index fell 1.8% to its lowest since Jan 30 as data showed that annual inflation last month rose at the quickest pace in seven months. The Indonesian central bank is focused on currency volatility and left its policy rate unchanged at 6% for the fourth consecutive meeting in February. It is likely to maintain a cautious approach to policy easing, and wait for the US Federal Reserve (Fed) to cut interest rates first. Other Asian currencies were largely subdued, with the Singapore dollar up 0.1%. The Thai baht slipped 0.1%, while the Taiwanese dollar was unchanged. The Indian forex market was closed for a bank holiday. Asian stock markets advanced on prospects of a recovery in Chinese demand after data showed that manufacturing activity expanded at the fastest pace in 13 months last month. Indonesia rupiah, stocks hit multi-month lows after inflation data TOKYO (April 1): Factory activity in many Asia economies weakened in March but there were some brighter signs in China and South Korea, surveys and data showed on Monday, offering a mixed picture on the once fast-expanding, key driver of the global economy. China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 51.1 in March from 50.9 the previous month, a private survey showed on Monday, expanding at the fastest pace in 13 months with business confidence hitting an 11-month high. The finding joins an official PMI survey released on Sunday that showed China’s factory activity expanded for the first time in six months. The rebound in China, which is struggling to mount a strong economic revival partly due to a protracted property crisis, provides some welcome relief to Beijing and investors globally. Separate data showed South Korea’s exports rose 3.1% in March year-on-year, marking the sixth straight month of increase thanks to robust demand for chips. And over in Japan, while big manufacturers’ sentiment soured, optimism among services sector firms hit a more than three-decade high in the first quarter, the central bank’s tankan survey showed. But manufacturing activity was weak in most parts of Asia including export powerhouses Japan and South Korea, as well as Taiwan, Malaysia and Vietnam. Japan’s final au Jibun Bank PMI stood at 48.2 in March, the highest level since November and recovering from February’s 47.2 which marked the fastest pace of contraction in over 3-1/2 years. However, activity contracted for a 10th straight month as new export orders slumped, reflecting souring sentiment in key markets like China and North America, the survey showed. South Korea’s manufacturing activity also weakened in March as slowing domestic demand offset robust overseas sales with the PMI falling to 49.8 in March from 50.7 in February. The soft PMI readings highlight the challenge the region’s policymakers face as they wrestle with patchy signs of recovery in global demand and uncertainty on when the US Federal Reserve would start to cut interest rates. “China’s exports are picking up a bit but that’s because their goods are cheap. That means other Asian countries must compete with China for demand that’s not growing,” said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. “With no clear driver of global growth, it’s hard to paint a rosy outlook for Asia,” he added. Taiwan’s PMI fell to 49.3 in March from 48.6 in February, while that for Vietnam dropped to 49.9 from 50.4, and Malaysia’s declined to 48.4 from 49.5, the surveys showed. By contrast, manufacturing activity expanded in March in the Philippines and Indonesia, the surveys showed. In revised forecasts issued in January, the IMF projected Asia’s economy to expand 4.5% this year, driven by robust US demand and the boost from expected stimulus measures in China. But it said the recovery would be divergent across economies with Japan likely to see growth slow to 0.9%, in contrast to an expected 6.5% expansion in India. The IMF expects China’s economy to expand 4.6% this year, slowing from 5.2% in 2023. Asian factory activity slumps, brighter signs emerge in China by Leika Kihara Reuters by Poonam Behura Reuters Read also: China industrial upswing is latest sign of economic recovery the edge Bloomberg

tUESday A PRIL 2, 2024 19 The E dge C E O m o rning brief world BEIJING (April 1): New home prices in China rose at the fastest pace in more than two and a half years in March versus a month earlier, a private survey showed on Monday, driven by a slew of supportive steps to prop up the crisis-hit property sector. The average new home price across 100 cities rose 0.27% on month in March, the biggest rise since July 2021, showed data from real estate researcher China Index Academy. That compared with a 0.14% on-month gain in February. China’s property sector, a pillar of the economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on high leverage among developers triggered a liquidity crisis. A series of stimulus and easing measures from local policymakers have struggled to boost sales or increase liquidity. price rises for new homes in March was 43, an increase of three from February. Mega city Shanghai logged the highest price rise of 1.09%, whereas the northeastern city of Changchun experienced the steepest drop of 0.68%. However, total sales by value among 100 real estate companies plunged 49.0% year-on-year in the first three months of the year, indicating a turnaround for the sector is not yet in sight. “The intensive introduction of property market policies may lead to gradual repair of market sentiment,” China Index Academy said. “The decline in new home sales is likely to narrow in the second quarter.” Read also: Hong Kong homebuyers flock to CK Asset’s southside project on discounts China’s new home prices rise at fastest pace in over 2-½ years, survey shows (April 1): Singapore home prices rose for a third consecutive quarter, withstanding months of tepid sales and warnings from authorities about high interest rates. Private residential prices climbed 1.5% in the first quarter from the previous three months, according to preliminary estimates released Monday by the Urban Redevelopment Authority (URA). That is slower than the 2.8% price increase recorded in the fourth quarter of 2023. Sales fell 20%. The figures indicate underlying demand from local buyers remains steady, said Chia Siew Chuin, head of residential research for Singapore at Jones Lang LaSalle Inc. Cooling measures are unlikely in the short term, since the price gains were “supported by genuine local demand”, she said. The financial hub has so far dodged the worst of the property downturn sweeping the globe. Local demand has buoyed the city’s real estate, despite high interest rates and a spate of government curbs in recent years to cool the market. That’s prompted increased concern from authorities about homebuyers taking on debt under an uncertain economic outlook. The URA warned that domestic mortgage rates are expected to remain at levels that are elevated relative to those seen over the past decade. Morgan Stanley, which predicts a 3% drop in private home prices this year, said in a note Monday that values “are near their peak”. There are growing strains in particular segments like luxury apartments, a market that has been pummelled by a 60% stamp duty imposed on foreigner purchases last year. That’s led to developers struggling to sell units, and having to offer discounts on their projects in some instances. Authorities are also grappling with voter concerns about housing affordability. In its annual budget in February, the government refrained from introducing major demand-inducing measures, unlike other rival hubs such as Hong Kong. Singapore home prices rise again despite sales slowdown That’s most apparent in the public housing market, where the bulk of locals live. Price increases for second-hand government-built flats accelerated to 1.7% in the first quarter from 1.1% three months earlier, separate preliminary estimates showed Monday. That’s the 16th consecutive quarter of gains. Local demand for suburban private homes has also kept prices afloat. Lentor Mansion, a condominium project in the island’s north, managed to sell about 75% of its 533 units when it launched in mid-March. Such high take-ups though are likely one-offs, wrote Citigroup Inc analyst Brandon Lee in a March note, as a “flood of supply” of about 47 residential projects this year weighs on buying sentiment. Finalised price changes will be released by the URA on April 26. by Low De Wei Bloomberg by Liangping Gao & Ryan Woo Reuters Beijing city authorities marginally eased home purchase regulations last week, repealing a rule which restricted individuals from buying a home in the city within three years of divorce. The number of cities with on-month

tUESday A PRIL 2, 2024 20 The E dge C E O m o rning brief world (April 1): US factory activity unexpectedly expanded in March for the first time since September 2022 on a sharp rebound in production and stronger demand, while input costs climbed. The Institute for Supply Management’s manufacturing gauge rose 2.5 points to 50.3 last month, according to data released Monday. While barely above the level of 50 that separates expansion and contraction, it halted 16 straight months of shrinking activity. The March index exceeded all estimates in a Bloomberg survey of economists. BRUSSELS (April 1): Microsoft will sell its chat and video app Teams separately from its Office product globally, the US tech giant said on Monday, six months after it unbundled the two products in Europe in a bid to avert a possible European Union (EU) antitrust fine. The European Commission has been investigating Microsoft’s tying of Office and Teams since a 2020 complaint by Salesforce-owned competing workspace messaging app Slack. Teams, which was added to Office 365 in 2017 for free, subsequently replaced Skype for Business and became popular during the pandemic due in part to its video conferencing. Rivals, however, said packaging the products together gives Microsoft an unfair advantage. The company started selling the two products separately in the EU and Switzerland on Oct 1 last year. “To ensure clarity for our customers, we are extending the steps we took last year to unbundle Teams from M365 and O365 in the European Economic Area and Switzerland to customers globally,” a Microsoft spokesperson said. “Doing so also addresses feedback from the European Commission by providing multinational companies more flexibility when they want to standardise their purchasing across geographies.” Microsoft said in a blogpost that it was introducing a new lineup of commercial Microsoft 365 and Office 365 suites that do not include Teams in regions outside the EEA (European Economic Area) and Switzerland, and also a new standalone Teams offering for Enterprise customers in those regions. Starting April 1, customers can either continue with their current licensing deal, renew, update or switch to the new offers. For new commercial customers, prices for Office without Teams range from US manufacturing activity expands for first time since 2022 Microsoft to separate Teams and Office globally amid antitrust scrutiny by Mark Niquette Bloomberg by Foo Yun Chee Reuters Bloomberg US$7.75 (RM36.62) to US$54.75 depending on the product while Teams Standalone will cost US$5.25. The figures may vary by country and currency. The company did not disclose prices for current packaged products. Microsoft’s unbundling may not be enough to stave off EU antitrust charges which will likely be sent to the company in the coming months as rivals criticise the level of the fees and the ability of their messaging services to function with Office Web Applications in their own services, sources said. Microsoft, which has racked up €2.2 billion (RM11.2 billion) in EU antitrust fines in the past decade for tying or bundling two or more products together, risks a fine of as much as 10% of its global annual turnover if found guilty of antitrust breaches. Read also: OpenAI to open new office in Tokyo as part of global expansion AT&T says data from 73 mil accounts leaked on dark web Production snapped back sharply from a month earlier with a gain of 6.2 points that was the largest since mid-2020. At 54.6, output growth was the strongest since June 2022. The group’s measure of new orders also returned to expansion territory after contracting in February. The factory employment gauge shrank less in March than a month earlier. “Demand remains at the early stages of recovery, with clear signs of improving conditions. Production execution surged compared to January and February, as panelists’ companies reenter expansion,” Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a statement. Nine industries reported growth in March, led by textile mills, nonmetallic minerals, paper products and petroleum. Six contracted, including furniture, plastics and rubber products, and electrical equipment. More optimism The nation’s purchasing and supply management executives have recently expressed optimism about the outlook for manufacturing. Firmer orders growth illustrates resilient consumer demand and business investment, and suggests companies have made strides getting inventory levels in line with sales. The ISM data showed factory stockpiles contracted at a slower rate last month than in February, while a measure of customer inventories shrank at a faster pace. At the same time, the cost of materials and other inputs is rising, suggesting stubborn inflationary pressures. The group’s gauge of prices paid rose by 3.3 points to 55.8, the highest since July 2022. Meanwhile, orders from overseas customers, backlogs and imports were all unchanged in March.

TUESDAY APRIL 2, 2024 21 THEEDGE CEO MORNING BRIEF

tUESday A PRIL 2, 2024 22 The E dge C E O m o rning brief world (April 1): Bitkub Capital Group Holdings, the owner of Thailand’s biggest crypto exchange, is planning an initial public offering for 2025, chief executive officer Jirayut Srupsrisopa said in an interview on Monday. Jirayut said Bitkub plans to go public on the Stock Exchange of Thailand in an effort to boost the company’s profile and raise money. Bitkub is in the process of hiring financial advisers for the listing, he added. Bitkub had earlier signaled plans to pursue an IPO in Thailand in a 2023 shareholder letter, without specifying a target time frame. Competition for crypto traders in Southeast Asia’s second-biggest economy is heating up, with both Binance and Kasikornbank Pcl making moves to grab market share from Bitkub in the past six months. The number of active crypto trading accounts in Thailand jumped to 238,000 in March, the highest level since September 2022, according to data tracked by the Securities and Exchange Commission. In July last year, Bitkub sold a 9.2% stake in Bitkub Online Co, its crypto exchange unit, to Asphere Innovations Pcl for 600 million baht (RM77.9 million). Jirayut said he expects Bitkub Online’s valuation, Thailand’s biggest crypto exchange hiring advisers for 2025 IPO (April 1): Thailand plans to raise the fiscal deficit estimate for next fiscal year to stimulate a sluggish economy, according to a senior official, the clearest signal yet that the government is veering toward funding a US$14 billion (RM66.2 billion) cash handout programme through the state budget. The government needs to update the budget framework to bring it in line with the changing economic situation, Pornchai Thiraveja, director general of the Fiscal Policy Office, said after a meeting of the fiscal and monetary policy committee chaired by Prime Minister Srettha Thavisin in Bangkok on Monday. The meeting agreed to review the country’s medium-term budget framework that will allow for a wider deficit for the fiscal year starting Oct 1. Srettha’s cabinet last year approved a budget gap of 713 billion baht, or 3.56% of the country’s gross domestic product, for fiscal year 2025 under the medium-term fiscal framework. The outline calls for a gradual reduction of the shortfall until 2028 with a target to achieve fiscal balance “at an appropriate timing.” Pornchai’s comments came as Thailand is weighing the option to fund its 500 billion baht “digital wallet” plan from the state budget. The original proposal to finance it through a one-time borrowing faced resistance from some state agencies and lawmakers. Srettha last week ordered officials to come up with a funding plan that may also involve a combination of borrowing and the state budget. The stimulus plan, delayed by several months over differences on how it will be funded, is set to be implemented in the fourth quarter of calendar year 2024. Some central bankers and opposition parties have argued that the payout may fan inflation and widen fiscal deficit. by Anuchit Nguyen Bloomberg Thailand to widen 2025 budget deficit as it reworks handout plan by Suttinee Yuvejwattana Bloomberg pegged at about six billion baht in the deal, to rise as trading volumes on the platform near levels not seen since the last crypto bull market in 2021. Bitkub Online accounts for roughly 80% of Bitkub Capital’s earnings. As bitcoin’s rally to record highs stokes renewed optimism, Bitkub is expanding after cutting its headcount by about 6% in 2022 and 2023. Jirayut said he aims to boost the size of the workforce to 3,000 people by 2025, up from 2,000 now. SCB X Pcl, a financial company that controls the nation’s largest bank by market value, in 2022 scrapped a 17.85 billion baht plan to acquire a 51% stake in Bitkub Online amid increased regulatory scrutiny. bloomberg Pornchai didn’t specify if the larger deficit was to make room for the cash handout scheme, aimed at reviving a sluggish economy through private consumption. Pornchai also declined to give details on the planned increase, saying it will first need to be approved by the cabinet. Deputy Finance Minister Julapun Amornvivat said earlier that details of the digital wallet financing will be announced on April 10. There is already a conclusion, and the plan will face no objection as it has cleared nearly all concerns, he added. Stimulus measures, including the digital wallet plan, are billed as “extremely necessary” by Srettha, who doubles as finance minister. The Thai economy is coming off a decade of average sub-2% growth and still faces other headwinds, including uneven economic recovery after the pandemic and high interest rates. Reuters

TUESDAY APRIL 2, 2024 23 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE (April 1): The Monetary Authority of Singapore (MAS) has launched Cosmic, a centralised digital platform for the sharing of customer information among financial institutions to tackle money laundering, terrorism financing and proliferation financing. Cosmic, which stands for Collaborative Sharing of Money Laundering/Terrorism Financing Information and Cases, follows a proposal bill read in Parliament in May last year. According to the MAS, COSMIC participants may share customer information with another participant FI only if the customer’s profile or behaviour displays certain objectively-defined indicators of suspicion, or “red flags”. Information sharing is currently voluntary and focused on three key financial crime risks in commercial banking, namely the misuse of legal persons; misuse of trade finance for illicit purposes; and proliferation financing, the MAS adds. Under the FSMA, participating FIs are required to have in place policies and operational safeguards to protect the confidentiality of information shared. Loo Siew Yee, assistant managing director (policy, payments & financial crime) of MAS, says: “COSMIC will enable FIs to warn each other of suspicious activities and make more informed risk assessments on a timely basis. It complements the industry’s existing close collaboration with MAS and law enforcement authorities to combat financial crime. This will strengthen Singapore’s capabilities to uphold our reputation as a well-regulated and trusted financial centre.” MAS launches info-sharing platform to combat financial crime with banks (April 1): After the worst quarter in five years for Asia Pacific initial public offerings (IPOs), a pick up in activity is expected from South Korea, India and Japan while Chinese deals are likely to remain sparse. New share sales across the region fell to US$11 billion (RM52 billion) between January and March, the lowest tally for a quarter since early 2019, data compiled by Bloomberg show. The amount represents a 46% drop from the same period last year. While IPOs returned to major venues in Europe and the US, the slowdown in Asia was mostly due to Beijing’s decision to ramp up scrutiny of domestic new share sales as it tries to boost confidence in its equities market. Large deals in Hong Kong also vanished amid concerns about China’s economy. The city hasn’t hosted an offering larger than US$1 billion since October 2022. Syngenta Group withdrew its long-delayed application for a US$9 billion initial public offering in Shanghai last week, another blow to China’s equity markets after Alibaba Group Holding Ltd scrapped the planned listing of its logistics arm. Elsewhere in the region, new share sales set to raise several hundred million dollars are surfacing. In South Korea, marine services company HD Hyundai Marine Solution Co and one shareholder are seeking as much as 742 billion won (RM2.61 billion) this month. Even priced at the bottom of range, it would the largest IPO in Seoul since early 2022. India has hosted a flurry of tiny deals since the start of January, drawing scrutiny from regulators during the past month. Still, with demand for equities in the country remaining high, offerings bigger than US$100 million are expected to be taken to the market. A shareholder of telecom service provider Bharti Hexacom Ltd is this week set to start selling shares in the company that may raise as much as 42.8 billion rupees (RM2.43 billion). The pipeline of expected large deals in Mumbai also includes a potential US$1 billion offering by Bajaj Housing Finance Ltd. In Japan, a 70% surge in shares of discount-store chain operator Trial Holdings Inc since its listing on March 21 could India, South Korea and Japan to see more IPOs while China stalls BY FILIPE PACHECO Bloomberg BY NICOLE LIM theedgesingapore.com Read also: Set of interim measures directions issued over Grab’s possible acquisition of Delivery Hero’s business in Singapore boost sentiment for other newcomers as improving shareholder returns and corporate profits revive optimism in the local market. It’s ¥38.85 billion (RM1.21 billion) IPO was the largest in Tokyo since October. “Japan and Korea should still be doing well, while India IPO market should be very strong. The local market appetite is quite strong and IPOs in the past year have been generally rewarding,” said Rajat Agarwal, Asia equity strategist at Societe Generale SA. “The overall market sentiment is an important factor for primary market activity and we see good sentiment in both of these markets,” he said, referring to South Korea and Japan. In Hong Kong, meanwhile, the drought in what’s traditionally been one of the world’s busiest listing venues will probably continue as Chinese firms stay on the sidelines following the scrapping of Syngenta’s and Alibaba’s proposed deals.

TUESDAY APRIL 2, 2024 24 THEEDGE CEO MORNING BRIEF WORLD BEIJING (April 1): Xiaomi is advising would-be buyers of its new SU7 electric sedan that they could face an up to seven-month wait, its app showed on Monday, in a sign that the Chinese electronics maker is enjoying strong demand for its vehicle. Xiaomi’s EV buyers face up to seven-month wait for car, app shows (April 1): Indian Prime Minister Narendra Modi said economic growth should be the Reserve Bank of India’s (RBI) top priority over the next decade, as he praised its management of the economy and the transformation of the banking system over the years. The RBI’s inflation targeting framework has helped to keep price pressures moderate, Modi said at an event to mark the RBI’s 90th anniversary in Mumbai. The central bank should look at “unique tools” to balance inflation and growth, he said. “In the next decade, RBI should give growth the highest priority, while focusing on trust and stability,” he said. The prime minister said the RBI’s turnaround of the banking system in the past decade was notable. The central bank should now “focus on ease in credit access for needy sections”, he added. Modi is seeking a third consecutive term in office in elections due to kick off in three weeks’ time, with the economy’s performance helping to bolster his support among voters. Growth of almost 8% in the fiscal year that ended in March makes India the fastest-expanding major economy in the world. Government officials predict growth will remain fairly rapid at more than 7% in the current financial year. Governor Shaktikanta Das, speaking earlier at the same event as Modi, said India’s growth was robust, and inflation was moderating. The RBI has kept interest rates unchanged for six consecutive policy meetings, as it tries to bring inflation down to the 4% target. Many economists predict a rate cut in the second half of the year. Finance Minister Nirmala Sitharaman, also speaking at the RBI’s event, said stability in the government securities market aided investor confidence and added to overall financial market resilience. The rupee has seen lower volatility, she added. Strong expansion Sitharaman said on the weekend that she hopes India would post growth of 8% or more in the January to March quarter, resulting in expansion of 8% or higher in the full fiscal year. The government earlier projected 7.6% expansion for the financial year. “Gross domestic product growth will get rerated if the projections for the full year come close to 8% as indicated,” Garima Kapoor, an economist at Elara Securities India Ltd, said by phone. The current data remains strong against the backdrop of a relatively resilient global economy, she said. Capital expenditure by the private sector is also at an “inflection point”, with spending likely to pick up after the elections, she said. Growth accelerated to 8.4% in the final three months of last year, although the figures were boosted by one-off items. In the previous two quarters, India’s economy expanded at above 8% as well. Modi says growth should be top priority for India’s central bank Vietnam seeking to learn from China with high-speed rail plan BY ANUP ROY & RUCHI BHATIA Bloomberg BY KHANH VU Reuters BY YELIN MO & BRENDA GOH Reuters Xiaomi began allowing consumers to place orders for its SU7 electric vehicle sedan last Thursday, after it announced the prices of the car which started at US$29,870 (RM141,091). Last Friday night, it said pre-orders hit 88,898 in the first 24 hours. Checks by Reuters on Xiaomi’s car app on Monday found that the firm is advising that delivery time for the company’s standard SU7 model could take 18 to 21 weeks, the SU7 Pro model 18 to 21 weeks, while the most expensive model, priced at 299,900 yuan (RM195,985), will take 27 to 30 weeks. Read also: Top China lithium firms look past profit slump and vow expansion HANOI (April 1): Vietnam is seeking to learn from China to develop its first high-speed railway network, according to its government, with plans in the works for a rail line running the length of the country. Vietnam is planning to build a 1,545km (960-mile) high-speed system with a price tag that could be as much as US$72 billion (RM340.2 billion), or 17% of its gross domestic product, according to state media. “China’s railway industry is the world’s most developed, and Vietnam, therefore, wants to learn from its experiences, especially in terms of technology, financial mobilisation and management expertise,” a government statement at the weekend said. It was released as Vietnam’s Minister of Planning and Investment Nguyen Chi Dung visited China, where he talked with Chinese trade and transport officials and railway executives. Vietnam and China signed dozens of cooperation agreements, including on railways, during a visit to Hanoi by Chinese President Xi Jinping in December. Last year, Vietnam’s government said it had asked Japan for support in building the high-speed railway. Southeast Asia has so far been slow to adopt high-speed rail, despite plans in place for years by Vietnam, Thailand and others. Only Laos, Vietnam’s less developed neighbour, has a high-speed system, which was funded by Chinese loans, against the advice of economists who warned the country could be saddled with debt for years. No timeframe has been announced for the high-speed system in Vietnam and the plan would be submitted to parliament for approval later this year, according to the government.

TUESDAY APRIL 2, 2024 25 THEEDGE CEO MORNING BRIEF WORLD ISTANBUL (April 1): President Tayyip Erdogan vowed on Monday to correct any mistakes that led to his party’s defeat in Turkey’s local elections where the opposition capitalised on economic woes and alienated Islamist voters, casting uncertainty over his reform plans. Sunday’s vote marked Erdogan and his AK Party’s (AKP) worst defeat in more than 20 years in power, revitalising the opposition party and strengthening Istanbul Mayor Ekrem Imamoglu’s standing as the president’s main rival. Redrawing a political map long dominated by the AKP, the Republican People’s Erdogan vows to make amends after humbling election loss in Turkey (April 1): Indonesian President-elect Prabowo Subianto met Chinese leader Xi Jinping in Beijing on Monday before heading to Japan for similar top-level talks amid rising tensions over the South China Sea. Xi told Prabowo that China is willing to boost “all-round strategic cooperation” with Indonesia and make positive contributions to regional and world peace, China Central Television reported. Xi also said China is willing to deepen maritime cooperation with Indonesia, and help the Asean nation in poverty relief, according to CCTV. Prabowo, who will succeed Joko Widodo in October, will have an audience with Japanese Prime Minister Fumio Kishida and Defence Minister Minoru Kihara on April 2 and 3. His plan to visit Japan was announced Monday, just days after China’s foreign ministry said Prabowo’s first international visit since winning the election in February would Prabowo meets China’s Xi before heading to Japan amid sea tensions BY CHANDRA ASMARA & BEN WESTCOTT Bloomberg BY DAREN BUTLER & ECE TOKSABAY Reuters be to Beijing, describing the journey as an event that “fully demonstrates the robustness of China-Indonesia ties.” The visit to Japan — a key US ally — suggests that Prabowo will continue his predecessor’s middle-of-the-road strategy in navigating the US-China rivalry. China is Indonesia’s biggest economic partner and is pouring more than US$7 billion (RM33.1 billion) into the nation’s commodity processing capacity. Confrontations between China and the Philippines have ratcheted up over the past year as President Ferdinand Marcos Jr shifted his foreign policy back to the nation’s longtime ally, the US. Since Marcos took office in 2022, he has boosted security ties with Washington and its allies. He has also asserted the Philippines’ territorial claims, which overlap with China and other neighbors. Jokowi has maintained a non-confrontational approach over the sea dispute — though Beijing’s claims cut into Indonesia’s exclusive economic zone — and Xi would prefer Indonesia continue that approach. Prabowo said during his campaign that he wouldn’t pick sides in the dispute. China claims almost all of the waterway that’s vital for global trade and is estimated to contain vast energy reserves. Beijing has ignored a 2016 international court ruling that said its efforts to assert control over the South China Sea exceeded the law. Chinese President Xi Jinping and Indonesia’s President-elect Prabowo Subianto shake hands at the Great Hall of the People in Beijing April 1, 2024. REUTERS Party (CHP) won the popular vote for the first time in decades and swept most of the main cities, penetrating far into conservative central Turkey. Analysts said voters lost patience with both a cost-of-living crisis driven by near 70% inflation and Erdogan’s divisive political style. The result bruised his hopes of adopting a new constitution, which could potentially extend his rule beyond 2028 when his term ends, they said. Though AKP and its allies have a majority in parliament, Erdogan would need broader support or a successful referendum for a new constitution. Erdogan delivered a sombre and introspective speech in the early hours of Monday. “This is not an end for us, but actually a turning point,” he said, acknowledging a “loss of altitude” for the AKP. “If we made a mistake, we will fix it,” he told crowds gathered at AKP headquarters in Ankara, without indicating what changes he might make within his party or in policy. In response, Turkish stocks rose and the lira — which has shed more than 80% of its value in five years — touched another record low versus the dollar on a holiday for many world financial markets.

TUESDAY APRIL 2, 2024 26 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) TWL HOLDINGS BHD 130.3 0.000 0.030 0.00 169.5 SMTRACK BHD 65.0 0.000 0.045 -10.00 58.0 FITTERS DIVERSIFIED BHD 55.1 0.000 0.055 10.00 128.8 ZANTAT HOLDINGS SDN BHD 51.0 0.105 - 0.00 137.2 SIME DARBY PROPERTY BHD 43.7 0.015 0.930 48.80 6,324.8 EVERSENDAI CORP BHD 40.2 -0.010 0.285 72.73 222.6 BINA PURI HOLDINGS BHD 38.5 0.000 0.080 -5.88 269.9 VELESTO ENERGY BHD 35.3 0.000 0.295 28.26 2,423.6 SAPURA ENERGY BHD 33.2 0.000 0.050 11.11 918.8 MY EG SERVICES BHD 32.3 -0.005 0.785 -3.68 5,855.4 PERDANA PETROLEUM BHD 32.2 -0.010 0.320 60.00 710.6 EVERGREEN MAX CASH CAPITAL 31.7 0.030 0.525 28.05 585.3 ARTRONIQ BHD 28.3 0.015 0.285 -67.05 116.3 ALPHA IVF GROUP BHD 28.2 0.010 0.325 0.00 1,579.5 SOUTHERN SCORE BUILDERS BHD 26.4 0.030 0.375 74.42 852.2 MALAYSIAN RESOURCES CORP BHD 25.9 -0.015 0.660 48.31 2,948.6 TANCO HOLDINGS BHD 24.2 0.000 0.845 43.22 1,754.6 EKOVEST BHD 23.0 0.000 0.490 0.00 1,453.1 MINETECH RESOURCES BHD 22.9 0.005 0.155 6.90 276.6 HANDAL ENERGY BHD 22.9 0.005 0.090 -25.00 33.6 Data as compiled on April 1, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) FINTEC GLOBAL BHD 0.010 100.00 586.9 0.00 59.3 ZANTAT HOLDINGS SDN BHD 0.490 0.105 51,037.5 0.00 137.2 G3 GLOBAL BHD 0.025 25.00 233.9 0.00 94.3 EUPE CORP BHD 1.240 24.62 14,095.2 41.71 175.6 CHIN HIN GROUP PROPERTY BHD 1.570 20.77 4,593.6 88.02 1,036.8 REACH ENERGY BHD 0.030 20.00 41.1 -25.00 63.9 XIDELANG HOLDINGS LTD 0.030 20.00 913.5 20.00 63.5 SILVER RIDGE HOLDINGS BHD 0.410 15.49 7,399.9 -64.35 91.3 SUCCESS TRANSFORMER CORP BHD 0.835 14.38 6,764.5 17.61 196.4 VSOLAR GROUP BHD 0.120 14.29 13,784.7 -30.86 22.6 MCLEAN TECHNOLOGIES BHD 0.215 13.16 7,372.1 30.30 42.4 DOLPHIN INTERNATIONAL BHD 0.215 13.16 4,824.0 30.30 28.8 K SENG SENG CORP BHD 0.960 12.94 563.8 9.09 144.3 CHINA OUHUA WINERY HOLDINGS 0.045 12.50 102.8 -18.18 30.1 ARB BHD 0.045 12.50 712.9 -30.61 56.2 SECUREMETRIC BHD 0.195 11.43 16,016.4 34.48 112.5 KHEE SAN BHD 0.150 11.11 48.8 11.11 20.6 FIAMMA HOLDINGS BHD 1.040 10.64 4,008.2 10.64 551.4 ASIA MEDIA GROUP BHD 0.110 10.00 197.3 15.79 26.3 EURO HOLDINGS BHD 0.055 10.00 1,588.2 -35.29 70.6 Data as compiled on April 1, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) FOCUS DYNAMICS GROUP BHD 0.010 -33.33 682.5 -33.33 63.7 SC ESTATE BUILDER BHD 0.010 -33.33 1,624.2 -35.71 32.2 ALAM MARITIM RESOURCES BHD 0.020 -20.00 340.0 -33.33 30.6 SANICHI TECHNOLOGY BHD 0.020 -20.00 356.0 -20.00 28.1 NEXGRAM HOLDINGS BHD 0.025 -16.67 2,454.9 -44.44 19.5 SAUDEE GROUP BHD 0.025 -16.67 1,171.6 0.00 39.0 CME GROUP BHD 0.025 -16.67 867.6 -16.67 26.2 TA WIN HOLDINGS BHD 0.030 -14.29 2,033.3 -25.00 103.1 XOX NETWORKS BHD 0.030 -14.29 211.0 -14.29 34.1 TCS GROUP HOLDINGS BHD 0.165 -13.16 10,698.4 22.22 70.8 INNITY CORP BHD 0.410 -11.83 236.2 -14.58 57.2 VIZIONE HOLDINGS BHD 0.040 -11.11 183.1 -33.33 81.8 PINEHILL PACIFIC BHD 0.330 -10.81 778.0 -8.33 49.4 MICROLINK SOLUTIONS BHD 0.305 -10.29 7,936.0 -65.34 327.1 VELOCITY CAPITAL PARTNER BHD 0.045 -10.00 858.0 0.00 62.2 FLEXIDYNAMIC HOLDINGS BHD 0.195 -9.30 2,099.3 -2.50 58.4 MERIDIAN BHD 0.050 -9.09 4,182.5 -47.37 11.3 OCR GROUP BHD 0.055 -8.33 36.5 -8.33 76.2 HEXTARTECHNOLOGIES SOLUTIONS 1.210 -8.33 338.5 -13.96 2490.6 MPIRE GLOBAL BHD 0.135 -6.90 205.0 -3.57 40.4 Data as compiled on April 1, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) MALAYSIA AIRPORTS HOLDINGS 9.760 -0.200 2,742.2 32.61 16,285.1 HEXTARTECHNOLOGIES SOLUTIONS 1.210 -0.110 338.5 -13.96 2,490.6 NESTLE MALAYSIA BHD 118.100 -0.100 63.9 0.43 27,694.5 HARRISONS HOLDINGS MALAYSIA 9.000 -0.090 13.7 4.41 616.3 HENGYUAN REFINING CO BHD 3.110 -0.080 277.8 1.30 933.0 SAM ENGINEERING & EQUIPMENT 4.900 -0.080 142.3 22.75 3,317.2 BATU KAWAN BHD 19.860 -0.080 62.5 -3.59 7,808.7 KLUANG RUBBER CO MALAYA BHD 4.560 -0.070 2.0 25.97 283.5 MALAYAN CEMENT BHD 4.920 -0.070 680.8 16.31 6,452.6 HEITECH PADU BHD 1.890 -0.070 4,043.3 114.77 191.3 INARI AMERTRON BHD 3.170 -0.060 4,163.7 5.32 11,913.9 HARTALEGA HOLDINGS BHD 2.690 -0.060 1,757.8 -0.37 9,181.7 IJM CORP BHD 2.370 -0.060 5,836.9 26.06 8,309.6 PMB TECHNOLOGY BHD 2.600 -0.060 125.6 -6.47 4,214.2 INNITY CORP BHD 0.410 -0.055 236.2 -14.58 57.2 TELADAN GROUP BHD 1.150 -0.050 131.0 12.75 934.2 SHL CONSOLIDATED BHD 2.150 -0.050 10.0 4.88 520.6 KOBAY TECHNOLOGY BHD 1.630 -0.050 1,873.8 22.56 528.4 TIEN WAH PRESS HOLDINGS BHD 0.845 -0.045 18.0 0.00 122.3 KENANGA INVESTMENT BANK BHD 1.070 -0.040 5,617.6 16.94 777.3 Data as compiled on April 1, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) DUTCH LADY MILK INDUSTRIES 32.500 1.860 193.8 40.33 2,080.0 MALAYSIAN PACIFIC INDUSTRIES 31.860 0.860 140.0 12.98 6,337.9 PETRONAS GAS BHD 18.260 0.640 394.8 4.94 36,131.6 PPB GROUP BHD 15.840 0.460 1,528.4 9.39 22,534.0 HEINEKEN MALAYSIA BHD 23.700 0.380 74.5 -1.82 7,159.7 CHIN HIN GROUP PROPERTY BHD 1.570 0.270 4,593.6 88.02 1,036.8 EUPE CORP BHD 1.240 0.245 14,095.2 41.71 175.6 HONG LEONG FINANCIAL GROUP 16.820 0.240 192.3 2.31 19,263.0 PETRONAS DAGANGAN BHD 21.800 0.220 234.9 -0.18 21,657.3 HONG LEONG INDUSTRIES BHD 10.460 0.200 56.6 19.13 3,341.7 AJINOMOTO MALAYSIA BHD 18.780 0.180 38.8 18.11 1,141.8 KUALA LUMPUR KEPONG BHD 22.580 0.140 239.4 3.48 24,756.8 HONG LEONG BANK BHD 19.520 0.140 801.9 3.28 42,313.9 GE-SHEN CORP BHD 3.530 0.130 281.4 204.31 443.2 ORIENTAL FOOD INDUSTRIES 2.120 0.130 752.3 30.86 508.8 FRASER & NEAVE HOLDINGS BHD 29.380 0.120 118.5 4.95 10,776.0 AMWAY MALAYSIA HOLDINGS BHD 7.410 0.120 34.0 32.94 1,218.1 K SENG SENG CORP BHD 0.960 0.110 563.8 9.09 144.3 SUCCESS TRANSFORMER CORP 0.835 0.105 6,764.5 17.61 196.4 ZANTAT HOLDINGS SDN BHD 0.490 0.105 51,037.5 0.00 137.2 Data as compiled on April 1, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 39,807.37 1,084.68 2.80 S&P 500 * 5,254.35 130.66 2.55 NASDAQ 100 * 18,254.69 236.24 1.31 FTSE 100 * 7,952.62 292.88 3.82 AUSTRALIA 7,896.86 49.88 0.64 CHINA 3,077.38 31.36 1.03 HONG KONG 16,541.42 188.03 1.15 INDIA 74,014.55 -104.84 -0.14 INDONESIA 7,205.06 -176.85 -2.40 JAPAN 39,803.09 114.15 0.29 KOREA 2,747.86 67.51 2.52 PHILIPPINES 6,979.81 37.60 0.54 SINGAPORE 3,234.89 87.80 2.79 TAIWAN 20,222.33 437.01 2.21 THAILAND 1,379.48 -6.94 -0.50 VIETNAM 1,281.52 34.17 2.74 Data as compiled on April 1, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 4,267.009.52 OIL US$ 86.534.64 RM/USD 4.7305 RM/SGD 3.5071 RM/AUD 3.0852 RM/GBP 5.9702 RM/EUR 5.1024