The EDGE - 12 March 2024

CEOMorningBrief TUESDAY, MARCH 12, 2024 ISSUE 731/2024 theedgemalaysia.com The Crown Jewel, Unveiled. Made For Human Nature City of Elmina’s Most Highly Awaited Forest-side Residential Enclave. Register Now Sime Darby Property Berhad (197301002148)

PROPOSED CONNECTION TO DASH EXPRESSWAY EXIT TO E35 3KM ELMINA CENTRAL PARK 0.5KM 1KM BUKIT CHERAKAH FOREST RESERVE E31 ELMINA RIDGE 1 ELMINA LAKESIDE MALL 2KM Get in touch. Tarmizi: 012-389 2461 Safwan: 017-229 8583 www.simedarbyproperty.com All plan layouts, designs, specifications, impressions and information contained herein are subject to change as required by the relevant authorities, the developer and/or the developer’s architect and cannot form part of an offer or contract. Whilst every care has been taken in preparation and providing this information at the time, the Vendor, Proprietor, Developer & its authorised employees and/or agents cannot be held liable for any variation(s). All illustrations, drawings, designs, sketches, models, images, visuals and pictures are the artists’ impressions only. The items are subject to variations, modifications, changes and substitutions as may be recommended by the Company, consultant and architect and/or relevant Approving Authorities. Phase ER1A • Total Units: 102 • House Type: 2 Storey Terrace House • Expected Completion Date: Apr 2026 • Land: Free of Encumbrances • Tenure of Land: Freehold • Developer License No.: 13017/08-2028/1086(A) • Validity Period: 20/8/2023 - 19/8/2028 • Advertisement & Sales Permit No.: 13017-43/01-2026/0074(N)-(L) • Validity Period: 22/1/2024 -21/1/2026 • Building Approving Authority: Majlis Bandaraya Shah Alam • Building Plan Reference: MBSA/BGN/BB/600-1(PS)/SEK.U15/0052-2023 • Selling Price: RM1,595,888 (Min.), RM2,660,888 (Max.) • Phase ER1B • Total Units: 126 • House Type: 2-storey Cluster and Semi-D Houses • Expected Completion Date: May 2026 • Land: Free of Encumbrances • Tenure of Land: Freehold • Developer License No.: 13017/08-2028/1086(A) • Validity Period: 20/08/2023 - 19/08/2028 • No. Advertisement & Sales Permit: 13017-45/02-2026/0147(N)-(L) • Validity Period: 15/02/2024 -15/02/2026 • Building Approving Authority: Majlis Bandaraya Shah Alam • Building Plan Reference: MBSA/BGN/BB/600-1(PS)/SEK.U15/0054-2023 • Selling Price : RM2,071,888 (Min.), RM4,097,888 (Max.) • Developer: Sime Darby Property (City of Elmina) Sdn. Bhd. 199301028527 (283265-U), 10th Floor, Block G, No. 2, Jalan PJU 1A/7A, Ara Damansara, 47301 Petaling Jaya, Selangor. • 7% Bumiputera Discount (Subject to Quota). THIS AD HAS BEEN APPROVED BY NATIONAL HOUSING DEPARTMENT Sime Darby Property Berhad (197301002148) A New Precinct Made for Human Nature FREEHOLD Superlink. Cluster. Semi-D Tucked closest to the majestic 2,700-acre rainforest reserve, Elmina Ridge is an exclusive residential precinct, set on gentle undulating land that offers serenity and privacy from the hustle of urban life, with nature, lifestyle conveniences and accessibility right at your doorstep. 83 Acres of Lake Parks 2,700 Acres of Pristine Forest 220 Acres of Green Spaces 6.5 units/acre Lowest Density Precinct Well-Connected to DASH & GCE Low Carbon City Planning Unveiling April 2024 Register Now 24’ x 70’ Superlink Homes 40’ x 80’ Semi-D Homes Scan for more product information

CEOMorningBrief TUESDAY, MARCH 12, 2024 ISSUE 731/2024 theedgemalaysia.com GOVT EXPANDS LOGISTICS SECTOR BUSINESS-TO-BUSINESS SERVICE TAX EXEMPTION p2 SkyWorld Development Berhad (200601034211) HOME: 99 Speed Mart files for IPO, seeking minimum public shareholding spread of 15% p8 MyEG acquires 14.4% strategic stake in HeiTech Padu for RM31 mil p8 CTOS not legally empowered to formulate credit scores, High Court rules; CTOS to appeal p13 WORLD: China cements ruling party’s grip on Cabinet with law change p16 Bitcoin tops US$72,000 for the first time as rally builds steam p17 Khazanah posts threefold jump in profits, to focus on home market Report on Page 4. FMM to appeal against govt’s flip-flop move on expiry date for foreign worker quota Report on Page 3. SUHAIMI YUSUF/THE EDGE

tuesday march 12, 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 Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Govt expands logistics sector business-tobusiness service tax exemption home by Adam Aziz theedgemalaysia.com KUALA LUMPUR (March 11): Logistics service providers are now further exempted from paying service tax for related services, to reduce instances of cascading effects or double taxation, the Ministry of Finance said. This is an additional scope of exemption to logistics services business-to-business (B2B) transactions, which previously only covered the same logistic services components. With the additional exemption, a freight service provider, for example, will not just be exempted from paying service tax for procuring freight service from another company. The tax exemption will also be for procurement of other logistic services under similar items as the freight service, such as warehousing, shipping, and cold chain services, the ministry said in a statement. “This is to reduce incidents of double taxing or cascading effect from the taxon-tax imposition on several layers of the logistics supply chain,” it said. The exemption follows a total of 25 engagement sessions with multiple stakeholders including logistic players, the ministry said. “The Ministry of Finance will continue to undertake engagement sessions with industry players especially in the logistics sector, to finalise the amendment to the guidelines to facilitate its enforcement,” it said. The expanded scope of exemption was also announced by Minister of Finance II Datuk Seri Amir Hamzah Azizan in the Parliament on Monday. The 6% service tax on the logistics sector was introduced on March 1. Other exemptions on the newly imposed tax include logistics services for transhipment, goods in transit, door-to-door, e-commerce food deliveries, and direct export products. For newly registered logistics service providers, they will only be imposed the 6% service tax from April onwards, the ministry added. Read also: FMM lauds govt’s service tax exemption on logistics sector business-to-business services Khazanah’s sale of MAHB stake to GIP only an opposition assumption, says Loke by Choy Nyen Yiau theedgemalaysia.com KUALA LUMPUR (March 11): Transport Minister Anthony Loke dismissed claims that Khazanah Nasional Bhd (Khazanah) intends to sell its stake in Malaysia Airports Holdings Bhd (MAHB) to Global Infrastructure Partners (GIP), saying it is merely an assumption by the Opposition. Loke, during the winding-up debate on the royal address in Dewan Rakyat on Monday, emphasised that there has been no official announcement from Khazanah regarding its intention to sell its stake in MAHB. “This is just your assumption. There has not even been an announcement that we want to sell to GIP,” Loke responded to Wan Ahmad Fayhsal (PN-Machang), who inquired about the rationale behind Khazanah selling its stake to GIP. While MAHB operates the Kuala Lumpur International Airport, Loke clarified that the transport ministry serves only as the regulator and cannot be involved in the equity restructuring of MAHB. “The structure of equity depends on Khazanah; they will make an announcement if there is any restructuring of equity. I am confident in the professionalism of Khazanah to evaluate who they want to choose as their strategic partner,” said Loke. He also clarified that the Pakatan Harapan-led administration in 2018 did not discuss the sale of Khazanah’s stake in MAHB, urging the Opposition not to misconstrue the issue. The Edge Malaysia weekly, published for the week of Feb 26-March 3, cited sources as saying that Khazanah, the Employees Provident Fund (EPF), and GIP were forming a consortium to own and operate MAHB, with an agreement potentially being inked as early as two to three weeks. The Edge also understood that the corporate exercise might involve some form of equity participation on the part of GIP. Currently, Khazanah holds the largest stake in MAHB with 32.67%, while the EPF has a 7.06% equity interest. Wan Ahmad Fayhsal claimed last week that GIP is owned by BlackRock which is a shareholder of companies that are involved in supplying arms that harm Palestinians. Thus, he urged government backbenchers to collectively oppose Khazanah and the EPF’s approach to selling their stake in MAHB to GIP.

tuesday march 12, 2024 3 The E dge C E O m o rning brief home KUALA LUMPUR (March 11): The Federation of Malaysian Manufacturers’s (FMM) survey showed that 53% of respondents opined that an expansion of double tax deduction incentive for the promotion of exports — including participation in trade and investment missions organised by trade associations — would assist them in expanding their export markets. Meanwhile, 51% of the respondents said the introduction of incentives to increase the visibility of Malaysian brands on regional and international export markets would also help, said FMM president Tan Sri Soh Thian Lai. “They hope Miti [Ministry of Investment, Trade and Industry] continue to provide them with these two major supports. “Members also talk about widening market access by expediting the pending Free Trade Agreements (FTAs) negotiations such as the Malaysian-European Union FTA and establishing new FTAs,” Soh told reporters during the media briefing on FMM Business Conditions Survey on Monday. The FMM survey showed that 46% of the respondents want increased funding to accelerate export promotion activities such as Market Development Grant for participation in trade and fairs. Top markets identified for Malaysia to negotiate FTAs with are Tanzania (74%), the US (49%), the United Arab Emirates (42%), Saudi Arabia (36%), Qatar (27%), South Africa (26%) and Brazil (19%). The survey was participated by 613 respondents from 16 industry sub-sectors — including food, beverages and tobacco, chemicals and chemical products, electrical and electronics, fabricated metals and motor vehicles — in the Klang Valley, Johor and Negeri Sembilan. ‘Government should expand double tax deduction incentive to promote exports’ KUALA LUMPUR (March 11): The Federation of Malaysian Manufacturers (FMM) intends to appeal against the government’s decision to bring forward the last date for foreign workers to enter the country to May 31, instead of Sept 30. On top of that, the government has also imposed a deadline for employers with hiring quotas to obtain visas with reference (VDRs) by the end of the month, or their quotas will be cancelled. FMM president Tan Sri Soh Thian Lai said the government’s latest decision would hurt export orders and economic growth. He commented that the flip-flopping in policy decisions will not help the local business community, and it will dampen the confidence of foreign investors in Malaysia. “We still would like to appeal to the government to reconsider until the end of September. They cannot flip-flop on the decision. Stay with it,” Soh told reporters after the briefing on the FMM Business Conditions Survey for the second half of 2023. Soh pointed out it is important for the government to engage with stakeholders and business manufacturers along the decision-making process. He commented that the government should stick to the original deadline of Sept 30, instead of bringing it forward to May 31. In short, employers who have been granted quotas to bring foreign workers will have to make sure that their foreign workers are granted VDRs by March 31, and they need to enter the country by May 31, which is less than three months from now. The VDR is a visa issued by the Malaysian Representative Office abroad to a non-citizen to enable the individual to enter Malaysia after the visa is approved by the Immigration Department headquarters. Any unused quota will be cancelled, according to the Home Ministry. “We do not want the government to confuse the industry. Please make your decision with 3C — clarity, consistency and certainty. What we want is to set up the right policy for the industry. “Is it too much [of a] request from the industry? How can we grow the confidence of foreign investors if you change the policy [often]? They will feel uneasy,” said Soh. He highlighted that manufacturers will not have sufficient time to meet the earlier deadline of May 31 as a result of the unexpected sudden change in policy deFMM to appeal against govt’s flip-flop move on expiry date for foreign worker quota by Syafiqah Salim & Hee En Qi theedgemalaysia.com by Syafiqah Salim & Hee En Qi theedgemalaysia.com Moderate outlook for manufacturing in 1H The FMM said the manufacturing sector is expected to pick up some momentum, albeit cautiously, in the coming months as subdued external demand, supply chain disruptions, and ongoing political tensions continue to weigh on the Malaysian economy. “Some indicators still remained below the optimism threshold, an inference that respondents are cautiously forward looking in the first half [1H2024], in particular, local and export sales, production volume and capacity utilisation,” said Soh. Read the full story Read also: Govt must improve 5G connectivity in industrial areas for technology advancement, says FMM cisions. On average, it takes about four months for manufacturers to bring in new foreign workers. “The government said the visa application took two days. That is for recalibration, for foreign workers who are already in Malaysia. [As for foreign workers in their source countries], we need 2.5 months to get the VDRs, while to bring the workers in, we need another one or two months. [It takes] at least four months for the whole process. “We need to interview the workers, get the right candidates, need [them] to go to the medical check-ups and et cetera, so for the whole process, we cannot complete it within one month,” Soh explained. According to him, the country will be facing a shortage of roughly 80,000 foreign workers, given that the government will cancel the unused quotas. Last Friday, Home Minister Datuk Seri Saifuddin Nasution Ismail said the decisions to cancel active worker quotas without VDRs after March 31, and to bring forward the last date for foreign workers to enter the country to May 31, were made jointly with the Ministry of Human Resources. Read the full story Read also: National Economic Action Council to discuss gradual reduction of migrant workers in next month’s meeting, says Rafizi

tuesday march 12, 2024 4 The E dge C E O m o rning brief home KUALA LUMPUR (March 11): Khazanah Nasional Bhd more than tripled its profits from operations in 2023 mainly due to higher dividends, and the sovereign wealth fund said on Monday that it plans to focus on its home market. Profit from operations was RM5.9 billion in 2023, from RM1.6 billion in 2022, Khazanah said in a statement. Dividend income totalled about RM2.5 billion, thanks largely to payments from key holdings such as Tenaga Nasional Bhd, IHH Healthcare Bhd, and CIMB Group Holdings Bhd. Khazanah’s net asset value grew 4.9% to RM85 billion in 2023, from RM81 billion in 2022. The fund declared a dividend of RM1 billion for 2023 to the government of Malaysia, doubled from RM500 million in 2022. “Our commitment remains as we continue to leverage our value creation efforts and portfolio rebalancing approach to strengthen our balance sheet and build a resilient financial position,” managing director Datuk Amirul Feisal Wan Zahir said at a press conference on Monday. For 2024, Khazanah plans to focus on assets at home amid volatile and uncertain global markets, he said. Khazanah will “reshape” its Malaysian portfolio through a socalled mission-based approach to drive long-term returns and sustainable value, Amirul Feisal said. The four key areas of Khazanah’s Malaysian portfolio strategy are connectivity, energy transition, digitalisation, and catalytic/ new growth areas. “It’s not gonna be easy because we have this global volatility that continues to happen. Having said that, I think when we have a resilient portfolio, we can try to manage it. But I do think that what we really want to capitalise on is the long-term investments, and the potential for growth is actually in Malaysia itself,” he added. Khazanah’s investment portfolio achieved a one-year time-weighted rate of return of 5.7% in 2023 compared to a 5.7% decline in 2022, a five-year rolling return of 2.9%. The better returns in 2023 were driven by the developed market portfolio and a parKhazanah posts threefold jump in profits, to focus on home market tial recovery of its listed investee companies in Malaysia. Looking inward to Malaysia in 2024 When asked about Khazanah’s divestment plans, Amirul Feisal stressed that the fund’s aim is to build a resilient portfolio while making sure that all of the assets are giving the best returns to the portfolio. “The strategy that we have here is really not to divest from public markets Malaysia but to basically be active in creating value in that portfolio. So [it’s about] value creation for the Malaysian portfolio,” he noted. In 2023, Khazanah deployed RM7.3 billion in new investments and raised RM7.2 billion from asset monetisation. As at Dec 31, 2023, its investments portfolio realisable asset value, or investments with commercial returns expectations, stood at RM126.2 billion, compared with RM122.5 billion at the end of 2022. In terms of asset class, more than half of Khazanah’s investments were in Malaysian public markets while global markets made up 17.2% of its portfolio followed by global private markets at 14.7%, real assets at 9.4%, and Malaysian private markets at 5.8%. This year, the global macroeconomic and market environment will remain challenging and volatile amid ongoing geopolitical conflicts in the Middle East, the continuation of the Russia-Ukraine war, and US-China competition, Khazanah said. Additionally, a significant global election cycle involving 76 countries representing over 60% of the world’s gross domestic product will introduce further volatility, Amirul Feisal flagged. by Emir Zainul theedgemalaysia.com Khazanah seeks to improve Malaysia Airlines’ long-haul routes, open to partners by Emir Zainul theedgemalaysia.com KUALA LUMPUR (March 11): Khazanah Nasional Bhd said on Monday it is seeking to improve Malaysia Airlines’ long-haul routes, and the sovereign wealth fund is open to working with a partner to strengthen the national carrier. There is still an opportunity to grow Malaysia Airlines by improving its longhaul flights, Khazanah managing director Datuk Amirul Feisal Wan Zahir said at a press conference here on Monday. Khazanah owns 100% of Malaysia Airlines through Malaysia Aviation Group Bhd. “We’re very strong in regional [routes],” he said. “But long-haul, we’re rather weak.” Khazanah is open to “all methods” including code-sharing — an agreement among airlines to sell seats on each other’s flights — among other strategies though it is not planning to sell its stake in the unlisted flag carrier. “It will be damaging for the airline if we adopt knee-jerk reactions,” Amirul Feisal said. “What we want to do is to focus on how we can actually have Malaysia as an economic hub.” Earlier, Amirul Feisal reported that MAG showed improved financial and operational performance in 2023 by recording a positive full year net income after tax for the first time since 2010. In fact, he said no additional capital injections were required by the national carrier during the year thanks largely due to strong demand following the recovery in international and domestic travel, passenger capacity returning to pre-Covid-19 levels, cost and cash flow control. Khazanah took over Malaysia Airlines in 2014 as the company’s troubles mounted following the loss of two planes that killed hundreds of people in that same year. Even before the twin disasters, the airline had been subjected to a slew of failed restructuring attempts. RM bil 2018 2019 2020 2021 2022 2023 146.8 138.1 123.2 134.4 130.4 135.0 As at Dec 31, 2023 Source: Khazanah Nasional Bhd Khazanah’s overall investment portfolio RAV: Realisable asset value NAV: Net asset value 0 30 60 90 120 150 91.5 92.2 79.0 85.7 81.3 84.8 Khazanah’s contributions to the government of Malaysia RM mil 2019 2020 2021 2022 2023 Dividends 1,000 2,000 2,000 500 1,000 Tax paid 50 80 227 133 38 Contribution to govt requests and social initiatives1 50 70 101 166 142 1 Youth employability initiatives (K-Youth, MySTEP), film in Malaysia Source: Khazanah Nasional Bhd

TUESDAY MARCH 12, 2024 5 THEEDGE CEO MORNING BRIEF

tuesday march 12, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (March 11): Malaysia’s retail sales may rebound in the first quarter of 2024 (1Q2024), after unexpectedly shrinking 0.2% in 4Q2023, amid rising cost of living and fallout from the Israel-Hamas war, a consultancy firm said on Monday. Retail sales are expected to grow an average 7.1% in 1Q2024 from a year earlier, with growth in all sub-sectors, partly due to festivities and school holidays, Retail Group Malaysia (RGM) said in a statement. RGM is forecasting 4% sales growth for the full year of 2024, following a 2.2% increase in 2023. “For 2024, the biggest challenge for Malaysia’s retail industry remains the rising cost of living of consumers,” RGM said. Still, government cash handouts may help to boost spending, while the “attractive” currency and visa-free entry for visitors from China may draw in a large number of tourists, it noted. Members of the Malaysia Retailers Association and Malaysia Retail Chain Association had projected growth of 2.1% for 4Q2023, and a 2.8% increase for the full year. Apart from higher cost of living, prolonged boycotts of many western brands with alleged or explicit support to Israel had dragged on certain retail brands. At the Malaysia’s retail sales may rebound after unexpected 0.2% drop in 4Q — RGM KUALA LUMPUR (March 11): A deterioration in Malaysia’s current account surplus in its balance of payment, which partly dragged on the ringgit, will reverse in the second half of 2024, said Australia & New Zealand Banking Group (ANZ). The current account surplus is likely to widen again as global trade picks up and the completed foreign direct investment projects benefit exports, ANZ said in a note on Monday. The outlook for the financial account is less certain though Malaysia’s balance of payment should improve in aggregate, it said. “We view the narrowing of the current account surplus as transitory,” ANZ said. “We expect it to reverse in the second half of the year.” For more than two decades, Malaysia runs a current account surplus, which means that the country is earning more foreign exchange from goods and services exported than it is spending on imports, thanks to strong shipments of electrical and electronic products. The current-account surplus, however, has narrowed in 2023 to 1.3% of gross domestic product, the lowest in more than a decade, amid portfolio outflows as investors and traders scrambled out when the ringgit’s interest rates fell lower than that of the greenback. The ringgit has fell to its fresh 26-year low against the US dollar in February before rebounding. The ringgit is still down 1.9% year-to-date, adding to 2023’s 4.3% decline. “The ongoing improvement in the global technology cycle will flow through Malaysia’s exports,” the research house said. Terms of Malaysia’s worsening current account surplus could reverse, thus supporting ringgit — ANZ by Luqman Amin theedgemalaysia.com by Jason Ng theedgemalaysia.com trade are also now improving — which means that Malaysian products are now commanding higher prices abroad — after having deteriorated through much of 2023, ANZ said. However, the financial account deficit may persist due to “structural reasons” amid higher-for-longer US interest rates, ANZ flagged. The negative spread of ringgit over US dollar interest rates, for the first time in history, has “reduced the buffer MYR local markets have” against heightened global market volatility, it noted. Still, policy measures announced so far, including calls for government-linked companies and government-linked investment companies to repatriate overseas earnings and convert them into ringgit, could support the ringgit, ANZ said. “If implemented effectively, these gains could be significant,” ANZ said. “Not only is Malaysia a net creditor economy, the stock of non-reserve external assets is significant.” Other measures policymakers could consider to deal with more persistent selling pressure include requiring exporters to convert their foreign currency proceeds on reversible basis with Bank Negara Malaysia to shore up the central bank’s reserves. Further, Bank Negara Malaysia could also guide “short-dated onshore interest rates higher in a calibrated and possibly reversible manner”, ANZ added. same time, Malaysians switched support to local and other Asian brands, RGM noted. “Many Malaysian consumers are still avoiding these restaurants and cafes,” RGM said. “This boycott will remain in the medium term.” Broadly, however, shopping traffic in 4Q2023 was flat when compared to 4Q2022, RGM said. While Malaysian consumers continued to spend, holiday sales were not the same as pre-Covid levels, due to the shortened school holiday, it said. For 2024, higher food prices and higher operation costs will remain the struggles for food-and-beverage operators in Malaysia, RGM flagged. The weak ringgit is raising costs of raw materials and food ingredients. “Despite the Chinese New Year festival and higher tourist activities, cafe and restaurant operators are anticipating their businesses to ease” 2.9% during 1Q2024, as compared to the same period last year, RGM said. For 1Q2024, department store operators are hopeful of a 21.5% surge in sales after three consecutive quarters of contraction, RGM said, while retailers in the fashion and accessories sub-sector are targeting a strong recovery of 8.8% growth for the quarter. Further, pharmacy operators are upbeat for a 9.4% rise in business, following a sharp slowdown in 4Q2023, while retailers in the personal care sub-sector are aiming for 15.5% growth in 1Q2024. Shahrill Basri/The Edge The Edge file photo

TUESDAY MARCH 12, 2024 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 11): Southeast Asia will remain on the radar when investors look to diversify their supply chains outside of China, as the coming US presidential election will have not much effect on the China plus one (China+1) strategy adopted by multinational companies (MNCs), according to former deputy international trade and industry minister and Malaysian Investment Development Authority (Mida) board member Ong Kian Ming. Ong said that regardless of the US election result, the foreign policy of the world’s largest economy on China will be unchanged, meaning the China+1 strategy will still be in play. “I think regardless of who will be the next president of the US after 2024, the US foreign policy on China will remain the same,” Ong said during the launch of the American Malaysian Chamber of Commerce’s (AMCHAM) Economic Impact Survey (EIS) 2022-2023. “[This] means that the China+1 strategy that many companies are pursuing — whether its American, European, Chinese, Japanese, Korean, Taiwanese — will continue, which means the focus will still be on Southeast Asia,” he added. Nonetheless, Ong underlines that the challenge lies in the Malaysian government enticing these investors to invest in the country instead of its regional counterparts. “I think the challenge for the Malaysian government, the different agencies involved, including Mida, which I’m a board member of, would be to try to make the pitch for why Malaysia is the best place to invest for certain types of companies that we want to target,” he added. According to AMCHAM chief executive officer Siobhan Das, Malaysia does have a leg up on its regional counterparts in terms of human capital, with its labour force being skilled and multicultural. Meanwhile, Ong noted that Malaysia’s strategic plans announced last year, namely the New Industrial Master Plan (NIMP) 2030 and National Energy Transition Roadmap (NETR), portray to investors that the country has a clear strategic direction going forward, playing to its attractiveness as an investment destination. “Malaysia is one of the few countries in the region that has this kind of very clear strategic direction,” he added. AMCHAM chairman Antony Lee, who is also CEO of AIG Malaysia Insurance Bhd, noted that other factors to consider in terms of a nation’s attractiveness to investors are legal predictability and risks of natural disasters. According to AMCHAM’s EIS 2022- 2023, which surveyed 81 of the association’s member companies, Malaysia is an important hub for manufacturing in the region with 57% of manufacturing members being operationally linked to other Asean nations. AMCHAM is a business association comprising 300 American, Malaysian and international member companies — including the Malaysian arms of Meta, Google, IBM, Coca Cola, Oracle, and Amazon Web Services. ‘China+1 strategy will remain regardless of who the next US president is’ KUALA LUMPUR (March 11): With the government’s plan to implement the global minimum tax (GMT) by 2025, tax treatment has risen to the top of US multinational companies’ (MNCs) future policy concerns in Malaysia, according to American Malaysian Chamber of Commerce (AMCHAM) chief executive officer Siobhan Das. Siobhan outlined that the chamber’s Economic Impact Survey (EIS) 2022- 2023 found that tax treatment was at the forefront of future policy concerns based on the survey of 81 of the association’s member companies — 65 of which were American MNCs. “Businesses don’t like changes, they want to be able to plan not just one year in advance but five, 10 years. They need to understand what the tax regime in any country that they’re going to be in will be like,” Siobhan said during the launch of the EIS 2022-2023 on Monday (March 11). “So, it’s a general: ‘What is Malaysia going to be doing with its current environment, and GMT plays into that, what is Malaysia going to do with GMT?’,” she added. The GMT, announced in Budget 2024 last October to be implemented by 2025, will subject MNCs to a minimum effective tax rate (ETR) of 15% for its operations in Malaysia. In simple terms, if a MNC’s ETR is below 15%, a top-up tax may be imposed to meet the threshold. According to former deputy international trade and industry minister Ong Kian Ming, who along with Siobhan sits on the Malaysian Investment Development Authority’s (MIDA) board, said companies to be affected have been consulted, adding that the GMT also falls in an area in which investors would like to see faster government action. “Its not my place to talk about the deTax treatment top concern for American MNCs amid plans for global minimum tax tails, but I can only say that from my exposure at MIDA is the government is actually working faster this year in order to make sure that the Budget 2024 items that are important to global investors are being discussed and rolled out and announced sooner rather later. “For example, there is a hard deadline in terms of the implementation of GMT being Jan 1, 2025,” Ong said. “And the companies that are affected by this have been consulted. They are giving the relevant inputs to MIDA which will then pass it on to the MOF (Ministry of Finance) and IRB (Inland Revenue Board) as part and parcel of the GMT consultation process,” he added. AMCHAM’s EIS 2022-2023 covers 81 of the association’s member companies, with over half being manufacturing companies predominantly in the electrical and electronics (E&E) industry. AMCHAM is a business association comprising 300 American, Malaysian and international member companies — including the Malaysian arms of Meta, Google, IBM, Coca Cola, Oracle and Amazon Web Services. Read also: Bulk of AMCHAM members see further revenue growth in 2024 BY IZZUL IKRAM theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com

TUESDAY MARCH 12, 2024 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 11): MyEG Services Bhd has acquired a 14.4% stake in HeiTech Padu Bhd for RM31.25 million as part of a strategic investment. In a bourse filing on Monday, the e-services provider said it acquired the stake of 14.57 million shares via its unit MyEG Capital Sdn Bhd through the open market and direct business transactions. The company said it bought 5.16 million shares from the open market on March 7 for RM11 million cash or RM2.134 sen per HeiTech share. It also acquired 9.42 million shares via direct business transactions for RM20.25 million or RM2.15 per share on average. On the rationale for the acquisition, MyEG said the investment will allow the company to explore potential collaborations with HeiTech to create synergies by leveraging the respective expertise and experience of both parties as established e-government service providers. Shares of HeiTech jumped 54 sen or 22% on Monday to close at a record high of RM2.99, giving the group a market capitalisation of RM302.66 million. The counter has seen a steep climb over the last 30 days, more than doubling from RM1.22 on Feb 9. MyEG acquires 14.4% strategic stake in HeiTech Padu for RM31 mil KUALA LUMPUR (March 11): Grocery chain operator 99 Speed Mart Retail Holdings Bhd has filed a draft prospectus to launch an initial public offering (IPO) that will see founder Lee Thiam Wah and his family letting go of 17% interest upon listing on Bursa Malaysia’s Main Market. This confirms a report by The Edge in October last year that the home-grown retailer is mulling an IPO to raise as much as RM1.5 billion from the capital market to fund its expansion. The draft prospectus filed with Securities Commission Malaysia on Monday also proposes a minimum public shareholding spread of 15%, versus the usual 25% as required by Bursa Malaysia. 99 Speed Mart is planning to sell 1.428 billion shares in its first-time share sale, comprising an offer for sale of up to 1.028 billion existing shares and a public issue of 400 million new shares. The institutional offering involves 1.218 billion shares, representing 14.5% of the group’s enlarged issued share capital, and comprising 1.028 billion existing shares and 190 million new shares. The retail offering, meanwhile, involves 210 million new shares, representing 2.5% of the group’s enlarged share capital. Of this, 42 million shares are reserved for eligible staff while 168 million shares will be offered to the Malaysian public. 99 Speed Mart files for IPO, seeking minimum public shareholding spread of 15% times, while 7-Eleven Malaysia Holdings Bhd is trading at 27 times forward PER. 99 Speed Mart plans to utilise the proceeds from the IPO to expand its network of outlets, establish new distribution centres, purchase delivery trucks, and upgrade existing outlets. The group will also allocate a portion of the proceeds to repay existing bank borrowings. CIMB Investment Bank Bhd is the principal adviser, sole bookrunner, managing underwriter and underwriter for the IPO. 99 Speed Mart aims to have 3,000 outlets nationwide by the end of 2025, increasing from 2,542 outlets currently. The group reported a net profit of RM293.69 million for the nine-month period ended Sept 30, 2023 (9MFY2023), up 48% from RM198.85 million in previous corresponding period, while revenue grew 15% to RM6.8 billion from RM5.91 billion. In FY2022, full-year net profit contracted 22% to RM326.67 million from RM419.09 million in FY2021, while revenue grew 3% to RM8.07 billion from RM7.84 billion. Upon completion of the IPO, Lee is expected to own a direct stake of up to 28.2% in the group, and an indirect interest of 51.5% through his private vehicle Lee LYG Holdings Sdn Bhd, with a six-month moratorium attached to the shareholdings. BY CHESTER TAY theedgemalaysia.com BY HUSNINA AHMAD DAHLAN & CHESTER TAY theedgemalaysia.com The draft prospectus did not provide valuation-related information, but Bloomberg data shows that convenient store Mynews Holdings Bhd is trading at a forward price-to-earnings ratio (PER) of 34.67 HeiTech Padu Bhd 0 5 10 15 20 Feb 16, 2023 March 11, 2024 0 1 2 3 Vol (mil) RM2.99 79.5 sen Source: Bloomberg RM/sen HeiTech gets one-year extension for provision of immigration system maintenance services Meanwhile, HeiTech announced that it has secured a contract extension worth RM13.11 million for the provision of maintenance services to the Malaysian Immigration System (MyIMMs). The contract extension is for a oneyear period starting from Feb 18, and any further renewal or extension will be at the discretion of the government. HeiTech, a system integration and application development solutions provider, first secured the contract in March 2021. Worth RM33.92 million, the contract was for a three-year period until Feb 17, 2024. The extension came amid the government’s selection process for the development of the National Integrated Immigration System (NIISe) to replace MyIMMs, which Home Minister Datuk Seri Saifuddin Nasution Ismail reportedly said was outdated and no longer capable of meeting future immigration needs. The Edge recently reported that HeiTech is among three companies shortlisted by the government to develop the NIISe project, which is understood to be worth over RM1 billion.

TUESDAY MARCH 12, 2024 9 THEEDGE CEO MORNING BRIEF

TUESDAY MARCH 12, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 11): Genting Bhd shares touched an intraday high of RM5.20 — the highest in four years — in morning trade on Monday, fuelled by optimism over its 20%-associate TauRx Pharmaceuticals Ltd’s trial drug to combat Alzheimer’s disease. After climbing as much as 5.05% or 25 sen, the stock pared gains to close at RM5.10 for a market value of RM19.64 billion, up 3% or 15 sen against last Friday’s (March 8) closing price of RM4.95. Genting was still among the top gainers and most active stocks on Bursa Malaysia, with 36.55 million shares changing hands, more than double the 18.23 million shares the previous trading day as well as above its 200-day average of 5.08 million shares. Compared to a year ago, the stock has gained 14.34%, adding RM2.46 billion to its market value. In March this year alone, the stock is up by 6.92%. Last Friday, Singapore-based TauRx said new data showed that its trial drug to combat Alzheimer’s disease has “sustained benefits” across the disease spectrum from early to moderate dementia. However, a head of a research house cautioned about Genting’s Alzheimer’s drug venture, after the US Food and Drug Administration (FDA) delayed its decision on Eli Lilly’s Alzheimer’s drug experimental treatment for early Alzheimer’s disease. This marks the second delay for the eagerly anticipated treatment by the FDA after it declined to grant accelerated approval for the medicine a year ago, Reuters reported. The US FDA will hold a meeting of outside experts to discuss its safety and efficacy but no date has been set for the meeting. Worth noting is that Genting’s share price rally comes after Maybank Investment Bank Research said its target price for the group could be revised upward to RM9.40 under the blue sky scenario where TauRx’s hydromethylthionine mesylate (HMTM) drug is approved and the pharmaceutical company is valued at US$15 billion (RM70.23 billion), up from US$1 billion currently. When contacted, its analyst Samuel Yin Shao Yang explained that his target price for Genting is now maintained at RM5.73, and the additional potential upside of RM3.67 or 64% — based on RM9.40 — is pending until more clarity from the respective regulatory authorities including US FDA and European Medicines Agency. Yin noted that HMTM is eligible for fast track consideration by regulators such as FDA. With that, he is hopeful that TauRx’s HMTM drug will get approval by year end. After ascribing 60% discount, TauRx accounts for only nine sen out of its target price of RM5.73 for Genting. According to Bloomberg, of the 16 analysts covering the stock, 14 have “buy” calls on Genting while two recommended “hold”. The average 12-month target price is RM5.95, implying an upside of 16.67% compared to Monday’s closing price of RM5.10. BY JUSTIN LIM theedgemalaysia.com Uncertainties persist amid optimism over Genting’s Alzheimer’s drug trial result On a separate note, Hong Leong Investment Bank (HLIB) Research was positive on Genting’s core business prospect as it believes the group is on track for sustained recovery momentum, with multiple factors in play contributing to its positive outlook. This was driven by the increasing frequencies of global flights (particularly outbound flights from China), as well as the visa-free travel pact between China and both Malaysia and Singapore. Hence, HLIB has revised upward its earnings forecast by 3% to RM1.76 billion for the financial year ending Dec 31, 2024 (FY2024) and by 6% to RM1.86 billion for FY2025, according to its March 1 research note. Notably, HLIB has upgraded its target price for Genting to RM7.12, from RM6.96 previously, due to the group being undervalued as it does not sufficiently capture the potential recovery of both its subsidiaries, Genting Singapore Ltd and Genting Malaysia Bhd. “Furthermore, it is important to point out that Genting is currently trading at an 8% discount to the assessed value of its stake in Genting Singapore,” it added. Genting posted an annual net profit of RM929.2 million in FY2023 against a net loss of RM299.91 million in FY2022, as annual revenue expanded 21.15% to RM27.12 billion from RM22.39 billion a year ago. This came after it posted a net profit of RM150.1 million in the fourth quarter of FY2023, against a net loss of RM168.72 million a year ago. Quarterly revenue grew 14.2% year-on-year to RM7.27 billion from RM6.36 billion. Genting Bhd 0 20 40 60 80 100 Mar 8, 2019 Mar 11, 2024 2 3 4 5 6 7 Vol (mil) RM *RM5.10 RM5.91 *As at market close on Mar 11, 2024. Source: Bloomberg Analysts’ recommendations for Genting Bhd Firm name Recommendation Target price (RM) Hong Leong Investment Bank Buy 7.12 CGS International Add 6.95 KAF Equities Buy 6.70 RHB Research Buy 6.37 JP Morgan Overweight 6.30 Nomura Buy 5.90 Public Investment Bank Outperform 5.80 UOB Kay Hian (Equity) Buy 5.78 Maybank Investment Banking Group Buy 5.73 CLSA Buy 5.68 Kenanga Investment Bank Outperform 5.60 Citi Buy 5.55 TA Securities Buy 5.54 Sadif Investment Analytics Buy 5.31 Affin Hwang Investment Bank Hold 5.10 Goldman Sachs Neutral 4.30 Source: Bloomberg

TUESDAY MARCH 12, 2024 11 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF UMediC’s 2Q net profit drops 14.8% to RM2.5 mil on decreased orders KUALA LUMPUR (March 11): UMediC Group Bhd’s net profit for the second quarter ended Jan 31, 2024 (2QFY2024) fell 14.8% to RM2.48 million, from RM2.91 million a year earlier, due mainly to decreased orders for the marketing and distribution segments. In a bourse filing on Monday, the ACE Marketlisted medical device distributor and manufacturer said revenue for the quarter rose to RM13.48 million, from RM12.52 million previously. UMediC did not declare any dividend for the quarter. For the cumulative six months, the company’s net profit dipped to RM4.37 million from RM4.91 million, on the back of revenue of RM28 million versus RM23.83 million. — by Husnina Ahmad Dahlan Flexidynamic receives RM12.4 mil contract for water treatment plant in Kelantan KUALA LUMPUR (March 11): Rubber glove solution provider Flexidynamic Holdings Bhd has received a contract worth RM12.4 million to supply and install mechanical and electrical works for the water treatment plant and intake in Jajahan Gua Musang, Kelantan. In a filing to Bursa Malaysia on Monday, Flexidynamic said its wholly owned subsidiary Flexidynamic Engineering Sdn Bhd had accepted the letter of award from Usaha Pammek Sdn Bhd, and the project is slated to be completed on March 20, 2025, or as otherwise mutually agreed between both parties. The scope of works covers the supply of machineries, equipment and manpower to completion of the whole contract works at the Loji Rawatan Air Bukit Chupak. Separately, Flexidynamic also announced that Sea Capital Holdings Sdn Bhd has emerged as its substantial shareholder after subscribing to 15 million shares or a 5% stake under a private placement exercise. — by Luqman Amin Intraday short selling of Microlink suspended as shares hit over two-year low KUALA LUMPUR (March 11): Enterprise solutions provider and systems integrator Microlink Solutions Bhd’s shares plunged to their lowest in more than two years while the stock exchange suspended intraday short selling activities on the stock on Monday afternoon. The suspension was triggered after the counter dropped more than 15% or 15 sen from its reference price. The stock then hit its limit-down of 53 sen, which is also its lowest since November 2021. Microlink’s intraday short selling will only be activated on Tuesday (March 12) at 8.30am, according to Bursa Malaysia’s special announcement. The counter closed 30 sen or 36% lower at 53 sen, giving the group a market capitalisation of RM568.37 million. After market close, Bursa Malaysia issued an unusual market activity (UMA) query to Microlink asking the group to state any possible explanation for the sudden volatility in its shares.Microlink is 9.9% controlled by the Sultan of Pahang, Al-Sultan Abdullah Sultan Ahmad Shah. He is the third largest shareholder, after Omesti Bhd’s 34.3% interest and Kenanga Islamic Absolute Return Fund 22.1% stake. — by Chester Tay Local institutions more than tripled net buying of equities to RM1.42 bil last week — MIDF KUALA LUMPUR (March 11): Local institutions’ net buying of Malaysian equities more than tripled to RM1.42 billion last week, from RM443.5 million in the previous week, according to MIDF Research. In its latest weekly fund flow report, the research house said local retailers also engaged in net buying activities for the second consecutive week, amounting to RM94.8 million. Meanwhile, foreign investors net sold RM1.51 billion worth of equities on the local bourse last week. — Bernama A slew of boardroom changes at Rexit, Seow Gim Shen made new CEO KUALA LUMPUR (March 11): Rexit Bhd announced a few changes to its boardroom, with the appointment of Datuk Seow Gim Shen as its new chief executive officer effective Monday, succeeding Datuk Chung Hon Cheong stepped down on the same day. Joining Seow is Wong Tack Heng, who was appointed as the chief operating officer following Si Tho Yoke Meng’s resignation, according to the general insurance services provider’s filing with Bursa Malaysia on Monday. Notably, in January this year, Seow, together with Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd made a takeover offer to acquire all the remaining ordinary shares in Rexit at 85 sen per share. This offer came after the three parties emerged as new substantial shareholders of Rexit, acquiring an aggregate of 92.27 million shares or a 53.27% stake in the group for a total cash consideration of RM78.43 million. However, independent adviser MainStreet Advisers Sdn Bhd said the offer is “not fair” and “not reasonable”. — by Luqman Amin MRL establishes Sukuk Murabahah programme up to RM10.21 bil to finance ECRL project KUALA LUMPUR (March 11): Malaysia Rail Link Sdn Bhd (MRL), a wholly-owned subsidiary of the Minister of Finance (Incorporated), has established its Islamic Commercial Papers and Islamic Medium Term Notes Programme of up to RM10.21 billion in nominal value, with an option to issue Sustainable and Development Goals (SDG) Sukuk. The Sukuk Murabahah programme will provide an opportunity for investors to participate in an initiative aimed at part financing for the construction of the East Coast Rail Link (ECRL) project, MRL said in a joint statement with East Coast Rail Link (ECRL) on Monday. It added that the SDG Sukuk Framework has been assigned a “Gold” Impact Assessment by MARC Ratings Bhd. — by Luqman Amin Microlink Solutions Bhd 0 5 10 15 Feb 20, 2023 Mar 11, 2024 0.4 0.6 0.8 1.0 Vol (mil) RM/Sen *53 sen 73 sen *As at market close on March 11, 2024 Source: Bloomberg

TUESDAY MARCH 12, 2024 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 11): A liquidator for SRC BVI, a subsidiary of SRC International Sdn Bhd, told the High Court on Monday that a sum of US$1.18 billion or the bulk of the Retirement Fund Inc (KWAP) loans of RM4 billion was not used for the intended purpose of investing in the energy and resource sectors. Angela Barkhouse, a Briton, who is the second witness in the SRC International civil suit trial to recover the sum from former prime minister Datuk Seri Najib Razak, said when Bank Negara Malaysia (BNM) allowed the loans from KWAP to SRC International in 2011 and 2012, the central bank set out conditions on Nov 3, 2011 that RM1.8 billion of the first loan of RM2 billion should only be used to acquire PT ABM Investama and Bumi Resources Tbk PT in Indonesia, and Gobi Coal and Energy Ltd and Erdens-Tavan Tolgoi in Mongolia. Barkhouse, who was testifying online in the proceedings from the Cayman Islands, said on April 6, 2012, BNM required that the second KWAP loan of RM2 billion should be used for investment in the energy and natural resources industries, excluding oil and gas. “Some funds were invested in PT ABM Investama and Gobi Coal and Energy Ltd. However, the majority of the KWAP loans was [not used] to acquire the four entities listed in the first BNM permission,” she said when testifying to SRC International counsel Kwan Will Sen. Barkhouse further said that for the misappropriated amount of US$1.18 billion, a sum of US$864.4 million was transferred to Cistenique Investment Fund BV (US$357.5 million) between April 17, 2012 and April 3, 2014, in addition to Enterprise Emerging Market Funds BV (US$481 million) between Dec 23, 2011 and July 2 2012, and Pacific Rim Global Growth Ltd (US$12.19 million) on Dec 20, 2013. The remainder, she added, went to Muraset Ltd (US$15 million) on Dec 27, 2011, and Gobi Resources Coal Ltd (US$4.5 million) on Feb 2, 2012. “None of the payments made to Cistenique, Enterprise Emerging Funds, or Pacific Rim were made in furtherance of investment in the energy and resources sector. They were in fact vehicles used to obfuscate the movement of funds misappropriated from SRC International. “[The transfers] purported to hold legitimate investment portfolios and to be indeBY HAFIZ YATIM & TIMOTHY ACHARIAM theedgemalaysia.com Bulk of RM4 bil KWAP loans to SRC diverted away from BNM’s approved use, says liquidator Read also: Liquidator says US$21.96 mil in SRC funds went to shell company owned by ex-Goldman banker Leissner’s wife KWAP’s RM4 bil loan partly went to Najib, stepson’s film company, says SRC liquidator pendent investment funds. Their true purpose was to operate as conduits, designed to allow money to be funnelled to third parties, while providing a plausible but false representation that misappropriated funds had been invested,” Barkhouse added. The witness said SRC International did not use the monies that it sent to SRC BVI in legitimate investment portfolios, and instead transferred the funds to third parties almost immediately following receipt, upon instructions. “For example, in the case of Cistenique and Enterprise, my review of records obtained from the former liquidator of these entities shows that a complex system of related-party loan agreements and promissory note issuances had been created by the operators and facilitators to generate a paper trail to cover up the reality that they were conducting money laundering,” she said. The witness said none of the funds transferred out of SRC International to SRC BVI’s account appear to have been used to ensure “the long-term supply of energy and natural resources (other than gas and oil) for Malaysia”, which was the purpose for which SRC International was established. Muraset owned by Jho Low Barkhouse added that Muraset received funds from SRC BVI, as payment for three million shares in Gobi Coal Energy Ltd (GCE) in Mongolia, where GCE is a BVI incorporated company that held rights to two large open cut mines in Mongolia. She said Aabar-SRC, a joint venture company between Aabar based in the United Arab Emirates and SRC International was formed in 2011 and incorporated in 2011 had acquired 14 million shares in GCE. “While this appears to be a transaction made in accordance with investment into the energy and resources sector, the acquisition of these shares was conducted in a less than straightforward manner. “This follows SRC BVI transferring US$15 million to Muraset. A transfer of BCE shares subsequently took place, in same day transactions on Jan 9, 2012. On Feb 2, 2012, SRC BVI paid the balance of US$4.5 million to GCE. “There seems little commercial sense in the transfers to Muraset or GCE, a company which is linked to Jho Low. No basis for this payment has been identified and indicates that this was a mechanism to divert funds belonging to SRC International,” Barkhouse added. She further explained that Aabar-SRC acquired GCE shares in advance of the initial public offering (IPO) that was to take place. Barkhouse said GCE’s financial statements indicated the mines had never produced coal on a commercial basis or generated any revenue from mining operations. Aabar-SRC acquired its shares in GCE in advance of a planned IPO in 2012. The funds from the pre-IPO were to be used to complete initial construction work on the mine and put in place infrastructure to further increase the value of the coal at IPO. “I note that in the pre-IPO document for GCE, the lack of infrastructure was noted and GCE stated they planned to build a temporary road to the Chinese border for US$35 million. It is not clear why, in the ten years since the investment was made, this road has apparently not been completed,” she added. Barkhouse is testifying as SRC International’s witness in the US$1.18 billion action against Najib for fraud, breach of fiduciary duties and breach of trust, conspiracy, tort of misfeasance in public office, conversion, dishonest assistance and knowing receipt of assets belonging to SRC International. SRC International has already obtained judgment in default against former SRC International managing director and former CEO Nik Faisal Ariff Kamil in Nov 2021 who was named as a defendant. Najib has pulled in several former SRC International directors, namely Datuk Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Datuk Mohammed Azhar Osman Khairuddin and Nik Faisal Ariff Kamil, as third party respondents. Initially they were named as defendants in the suit.

TUESDAY MARCH 12, 2024 13 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (March 11): A three-member Court of Appeal (COA) bench on Monday upheld a RM46 million summary judgment obtained by Minister of Finance-owned Perbadanan Nasional Bhd (Pernas) from the Kuala Lumpur High Court against Serba Dinamik Holdings Bhd group managing director Datuk Dr Mohd Abdul Karim Abdullah and two former senior executives of Serba Dinamik subsidiaries. Judge Datuk P Ravinthran, who led the COA bench, found there are no merits in Mohd Abdul Karim’s and the two former executives’ appeal and hence dismissed their appeal. Ravinthran sat together with Datuk Seri Mariana Yahya and Datuk Collin Lawrence Sequerah. The bench ordered Mohd Abdul Karim to pay costs of RM15,000, and the two former executives Rosland Othman and Rosli Hamat to pay a total of RM10,000. Pernas was represented by Rishwant Singh, Wafiy Azman and Haikal Suhaimi, while Frank Wong appeared for Mohd Abdul Karim. Ranjan N Chandran and Hakem Arabi appeared for Rosland and Rosli. Monday’s outcome was confirmed to The Edge by Wafiy. Rosland was previously a senior vice-president (special project) under Serba Dinamik Group Bhd (SDGB), while Rosli was a senior vice-president (investment) of Serba Dinamik International Ltd (SDIL). They are the first two defendants while Mohd Abdul Karim was named as the third defendant. SDGB and SDIL are Serba Dinamik’s subsidiaries. The High Court had in February last year agreed to enter a summary judgment against the trio. In a statement of claim filed in April 2022, the company said it entered an COA upholds RM46 mil summary judgment against Mohd Abdul Karim, two others KUALA LUMPUR (March 11): Credit reporting agencies, such as CTOS Data Systems Sdn Bhd (CDS), a wholly owned unit of CTOS Digital Bhd, are not legally empowered to formulate credit scores, according to a High Court decision last week. According to a court document on the eJudgement Management System sighted by The Edge, High Court judge Datuk Akhtar Tahir ordered CDS to pay businesswoman Suriati Mohd Yusuf RM200,000 together with RM50,000 in costs for an inaccurate negative credit rating. In reaching his decision, Akhtar found that CDS had overstepped its statutory functions under the Credit Reporting Agencies Act 2010 (CRA) in formulating a credit score on Suriati when it was merely to be a database of credit information for its subscribers. “In the court’s view[,] there is no provision in the [CRA] empowering the defendant (CDS) to formulate a credit score or empowering the defendant to formulate a credit score or empowering the defendant to create its own criteria or percentage to formulate a credit score. “The defendant is just supposed to be a repository of the credit information to which the subscribers have access,” the judgement dated March 7 read. “By formulating a credit score the defendant has gone beyond its statutory functions and the plaintiff (Suriati) has suffered a loss as a result of being labelled as a delinquent by the defendant when they have no right to do so,” it added. In the suit, Suriati alleged that CDS had given her a negative credit rating based on inaccurate information, collated by CDS, which resulted in her being considered not creditworthy leading to personal and business losses. The inaccurate information that led to the negative included a sum owed by Suriati to WEBE (formerly known as Packet One Networks (M) Sdn Bhd), which she denied owing. Suriati also contended that the credit score was based on “inaccurate criteria which was not updated”. Akhtar, in his judgement, said that based on evidence that CDS was alerted of the inaccurate information but chose CTOS not legally empowered to formulate credit scores, High Court rules; CTOS to appeal BY IZZUL IKRAM theedgemalaysia.com BY HAFIZ YATIM theedgemalaysia.com to ignore it, the credit reporting agency breached its duty of care owed to Suriati. “In the court’s view[,] the least the defendant could have done was to either suspend the information awaiting verification or notify the subscriber or applicants that the information was being verified,” the judgement stated. “By choosing to be indifferent even after being alerted by the plaintiff the defendant has clearly breached the duty,” it added. According to Akhtar, CTOS’ credit scoring criteria include payment history, the amount owed, credit history length, credit mix and new credit. CTOS to appeal; no material losses anticipated from High Court decision In a bourse filing on Monday (March 11), CTOS acknowledged the High Court judge’s decision in favour of Suriati but noted that CDS has lodged a notice of appeal to the Court of Appeal. “There was no material losses anticipated as a result of this matter and no provisions shall be required,” CTOS’ filing added. For the financial year ended Dec 31, 2023 (FY2023), CTOS’ net profit climbed 65% to RM118.37 million against RM71.72 million a year earlier as annual revenue grew 34.2% to RM261.44 million from RM194.78 million previously. Shares in CTOS ended one sen or 0.68% lower at RM1.45, giving the company a market capitalisation of RM3.35 billion. investment agreement and a put option agreement with Rosland and Rosli on Jan 24, 2018, under which Pernas agreed to purchase 13.5 million Serba Dinamik shares. The purchase price was not stated. Under the deal, the parties agreed that should Serba Dinamik shares fall below RM3 per share, Rosland and Rosli would pay Pernas the difference between RM3 and the actual share price it fell to, within seven days after a notice from Pernas. Pernas also inked a put option agreement with the duo, which gave Pernas the right to sell the shares it bought from the duo at an agreed option price that would take into consideration Pernas’ investment cost, at 12% interest per year. Rosland and Rosli, according to the statement of claim, then inked a supplementary option agreement on June 27, 2019, which stipulated that if the duo failed to buy the Serba Dinamik shares owned by Pernas should Pernas exercise its put option, then Mohd Abdul Karim would be required to complete the acquisition. Read the full story

TUESDAY MARCH 12, 2024 14 THEEDGE CEO MORNING BRIEF HOME Unclaimed Moneys (Amendment) Bill 2024 tabled in Dewan Rakyat for first reading Malaysia aiming for 27.3 million tourist arrivals in 2024 — deputy minister Health Ministry implements three-year medicine procurement contract to sustain prices BY CHOY NYEN YIAU theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com KUALA LUMPUR (March 11): The Ministry of Tourism, Arts, and Culture anticipates tourist arrivals in Malaysia to reach 27.3 million, with an expected income of RM102.7 billion, in 2024. Responding to a query from Datuk Seri Wilfred Madius Tangau (Pakatan Harapan-Tuaran) during an oral question-and-answer session in the Dewan Rakyat on Monday, Deputy Tourism, Arts, and Culture Minister Khairul Firdaus Akbar Khan said that in 2023, Malaysia recorded 20.1 million tourist arrivals, generating RM71.3 billion in tourism income. Khairul said that the targets for 2025 are 31.4 million tourists, with an income of RM125.5 billion, and for 2026, the goal is 35.6 million tourists, generating RM147.1 billion. In an effort to entice an increased number of international visitors to explore the country, Khairul said that several initiatives and strategies had been crafted, notably the Visit Malaysia Year 2026 representing the national focal point for tourism. “The ministry needs solid support of the state governments, the national tourism industry, and the people in making thorough preparations to welcome the arrival of more foreign tourists to Malaysia,” he added. Khairul noted that the ministry is actively participating in international tourism exhibitions, such as the International Tourism Bourse Berlin, World Travel Market London, Arabian Travel Mart Dubai, and the Asean Tourism Forum, which is crucial amid fierce competition from other countries promoting their destinations in these major exhibitions. In addition, Khairul said the ministry’s focus is also on strengthening airline cooperation for expanded direct flights, and organising familiarisation programmes with media and tourism agencies to promote new tourism products and destinations. KUALA LUMPUR (March 11): The Finance Ministry presented the Unclaimed Moneys (Amendment) Bill 2024 for the first reading in Dewan Rakyat on Monday, paving the way for the government to classify unclaimed money as revenue after 10 years. The Bill was tabled by Finance Minister II Datuk Seri Amir Hamzah Azizan and the second reading is scheduled during the ongoing session and will be concluded on March 27. A notable proposed amendment, Section 11(2) of the Act, seeks to enable the transfer of unclaimed money to the Consolidated Revenue Account after 10 years from the date the funds were credited to the Consolidated Trust Account. Under the existing law, unclaimed money previously held by companies and lodged with the registrar was to be credited to the Consolidated Trust Account. After 15 years, the unclaimed money under the trust account would be transferred to the Consolidated Revenue Account. Another revision involves the definition of unclaimed money, introducing a new Section 2A. This change specifies that unclaimed moneys are to be paid to the owner after becoming payable within two years, allowing companies and firms to maintain data related to unclaimed moneys. The current definition in Section 8 considers money as unclaimed if it remains unpaid for a period not less than one year. Other notable proposed amendments include a new Section 4A, empowering the minister to appoint any government officer as the registrar of unclaimed moneys, along with appointing one or more government officers as deputy registrars and assistant registrars of unclaimed moneys. KUALA LUMPUR (March 11): The Health Ministry has implemented a threeyear contract for medicine procurement as a measure to sustain current medicine prices, according to Deputy Health Minister Datuk Lukanisman Awang Sauni. Lukanisman said this move will offer advantages such as a consistent and stabilised medicine price for the government over the three-year period. “This will also eliminate the need for frequent tender advertising expenses, allow for more efficient contract monitoring, and prevent any interruptions in the supply or service in case of a new tender process,” he said in response to Datuk Mohd Isam Mohd Isa (BN-Tampin) during the oral question-and-answer session in Dewan Rakyat on Monday. Lukanisman also pointed out the ongoing collaborative medicine procurement efforts with teaching hospitals under the Higher Education Ministry and Defence Ministry. This initiative resulted in an estimated government savings of RM179.6 million from 2020 to 2022. Lukanisman noted that medicine prices are influenced by various economic factors, including foreign currency exchange rates, research and development costs, and manufacturing issues. However, he assured that subsidies for medicines at all Health Ministry health facilities are maintained to prevent patients from being burdened by any increase in the cost of medicine. For patients seeking treatment at private health facilities, he said, the Health Ministry provides consumer guide prices to assist citizens in obtaining price information and making informed comparisons. Additionally, Lukanisman said the Health Ministry is considering a drug price transparency initiative, requiring identified private health facilities to display drug prices, aiming to enhance access to competitively priced medications, enabling informed choices based on individual capacities, with the displayed prices shared on a public portal for easier comparison.

tuesday march 12, 2024 15 The E dge C E O m o rning brief home BUKIT GANTANG (March 11): Motorists using the West Coast Expressway (WCE) between the Taiping Selatan and Beruas elevated interchanges will enjoy free toll when they pass through the Section 11 toll plaza from midnight on Tuesday until May 11. Works Minister Datuk Seri Alexander Nanta Linggi said the two-month toll-free rides would be enjoyed by motorists entering the expressway from the Taiping Selatan, Trong and Beruas toll plazas from both directions. “Thanks to the concession company and the Malaysian Highway Authority (LLM) for approving the two-month toll-free rides for the motorists using the route, which I was made to understand is costing about RM422 million. “The opening of this section of the expressway is timely, as we will welcome the holy month of Ramadan tomorrow (Tuesday) and Hari Raya Aidilfitri soon. This is indeed a long-awaited alternative route. After this, the toll rate would be 16 sen per kilometre,” he told reporters after launching the opening of Section 11 of the WCE here on Monday. Nanta said the government, through the ministry, the Public Works Department, and LLM, constantly studies traffic flows based on the existing capacity compared to the number of vehicles on the road, followed by planning and improvement actions to reduce congestion, especially during peak hours, festive seasons, and school holidays. According to Nanta, the WCE is also expected to become an alternative route for motorists heading north from the Klang Valley and the West Coast states. He also suggested establishing a logistics network for heavy vehicles to make the route a preferred choice, especially for those heading to the Lumut, Teluk Intan and Klang ports, to avoid hilly terrain and optimise operational cost, while helping to reduce traffic congestion. Section 11 of West Coast Expressway now open, toll-free for two months — minister BERLIN (March 11): Prime Minister Datuk Seri Anwar Ibrahim has arrived in the German capital Sunday for his official visit to Malaysia’s largest trading partner among European Union member countries. The aircraft carrying the prime minister landed at the Berlin Brandenburg Airport at 10.29pm Sunday (5.29am Monday, Malaysia time). On hand to welcome the premier at the airport were Foreign Minister Datuk Seri Mohamad Hasan, Malaysia’s Ambassador to Germany Datin Paduka Dr Adina Kamarudin and German government officials. On Monday, Anwar is scheduled to visit Siemens Energy before holding a bilateral meeting with his German counterpart, Chancellor Olaf Scholz, besides paying a courtesy call on President Frank-Walter Steinmeier. The leaders are expected to discuss the progress of Malaysia-Germany relations, particularly economic cooperation, education, environment and sustainability, as well as exchange views on regional and international issues of mutual interest. During his six-day visit, which also includes KUALA LUMPUR (March 11): The Ministry of Housing and Local Government (KPKT) is currently implementing the mapping of affordable housing prices under the National Housing Policy to ensure that suitable prices can be offered according to state and locality. Its minister Nga Kor Ming said this method is based on the median income of residents by zone, state, and district obtained through the Household Income and Basic Amenities Survey Report 2022. He said the mapping of affordable housing prices aims to serve as a scientific guide for developers and housing providers in setting house prices in each locality. “Previously, under the National Housing Policy, the definition of affordable housing was not more than RM300,000, but the price of affordable homes in Kelantan is RM300,000, and in Kuala Lumpur also RM300,000. Does it make sense? “How can we equalise the price of affordable homes in Kelantan with those in Kuala Lumpur? So, this year, KPKT is implementing affordable housing mapping,” he said when winding up debate on the Motion of Thanks the harbour city Hamburg, Anwar will meet captains of industry and potential investors such as Schott AG, Infineon Technologies AG, Melexis and Airbus, as well as a session with the Malaysian diaspora in the country. Also accompanying Anwar were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick. While in Berlin, the Prime Minister will have a speaking engagement at Körber Foundation, a non-profit organisation focusing on social and political issues, and deliver a keynote address at the SME Future Day 2024 hosted by the German Association of Small and Medium-sized Businesses (Bundesverband mittelständische Wirtschaft - BVMW). In Hamburg, Anwar will attend the 101st East Asia Friendship Dinner (Ostasiatisches Liebesmahl) hosted by the German Asia-Pacific Business Association, where he is scheduled to deliver an address. According to Wisma Putra, Anwar’s visit to Germany is expected to further solidify the longstanding relations and multifaceted cooperation between Putrajaya and Berlin. Germany has been Malaysia’s largest trading partner among European Union member countries since 2000, while Malaysia is the largest trading partner for Germany among Asean member states. In 2023, Malaysia’s total trade with Germany increased by 5.9% to RM63.45 billion (US$13.9 billion) compared with RM59.87 billion in 2022. Anwar arrives in Berlin for official visit to Germany Housing Ministry implementing affordable housing price mapping, says Nga Bernama Bernama Bernama for the Royal Address for the ministry in the Dewan Rakyat on Monday. Nga also announced that the mapping of affordable housing prices is expected to be completed this year. bernama

TUESDAY MARCH 12, 2024 16 THEEDGE CEO MORNING BRIEF WORLD TAIPEI (March 11): Taiwan’s top security official told Parliament on Monday that China runs “joint combat readiness patrols” near the democratic island every seven to 10 days on average, saying Chinese forces were trying to “normalise” drills near Taiwan. China has in recent years stepped up military activities near Taiwan, with almost daily incursions into the island’s air defence identification zones and regular “combat readiness patrols” that included drills by its air and naval forces. China claims democratically governed Taiwan as its own territory, over the island’s strong objections. Taiwan National Security Bureau director general Tsai Ming-yen said Beijing usually dispatches around 10 warplanes and three to four naval ships on joint patrols near Taiwan, calling them part of a “multi-front” effort that also includes economic coercions and misinformation campaign to pressure the island. “They are tying to normalise their military activities,” Tsai said, adding that the patrols were occasionally timed to coincide with diplomatic events, such as visits to the island by foreign lawmakers. Tsai said that Taipei had “close discussions” with international allies on whether a Chinese invasion is imminent, and that tensions across the Taiwan Strait had not escalated sharply. “We do not see any signal of a war in the Taiwan Strait breaking out,” Tsai said. Taipei urged Beijing last week not to change the “status quo” around waters near Taiwan’s frontline islands by sending coast guard ships into restricted areas. Last month, Beijing began regular coast guard patrols around the Taiwan-controlled Kinmen islands, which hug the Chinese coast, after two Chinese fishermen died trying to flee Taiwan’s coast guard. Tsai said Beijing will probably continue its carrot and stick approach towards Taiwan ahead of the new president’s inauguration speech in May, including boosting relations with Taiwanese who favour closer ties with China while stepping up displays of force. “They play soft on one hand and hard on the other,” he said. Vice President Lai Ching-te, whom China views as a separatist, won the presidency in January and will take office on May 20. China trying to normalise military drills near Taiwan, island’s top security official says (March 11): The Chinese legislature voted to change a four-decade-old law so it tightens the Communist Party’s grip on the Cabinet, underscoring President Xi Jinping’s drive to give the party control over all the main levers of government. Some 2,883 delegates to the annual National People’s Congress gathering in Beijing voted in favour of the amendments to the State Council Organic Law on Monday. Eight voted against, and nine abstained. The changes would emphasise the party’s leadership over the Cabinet, and encourage it to follow certain ideologies including Xi Jinping Thought, Li Hongzhong, the vice-chairman of the legislature’s Standing Committee, said earlier. They would also subject the body to greater oversight from the legislature, which is packed with party members. The exact wording of the amended law wasn’t immediately available. The first changes to the law since it was adopted in 1982 follow on from Xi’s campaign over his decade-plus in power to elevate the status of the Communist Party that he dominates. That desire has ensured the party is represented in all walks of life, from company boardrooms to university lecture halls. Last year, Xi led a revamp of the party of 98 million members that included the creation of two separate financial bodies — one to take control of a financial stability committee that had been under the State Council. “The new law could help entrench Xi’s vision for party-led governance into the future by also making it easier for future leaders to keep the State Council in check,” said Neil Thomas, a fellow on Chinese politics at the Asia Society Policy Institute’s Center for China Analysis. Changhao Wei, a fellow at Yale Law School’s Paul Tsai China Center and a founder of the NPC Observer website, said the amendment was intended to modernise the law “by codifying some of the newer principles and practices concerning the State Council and harmonising the statute with later-enacted laws”. China cements ruling party’s grip on Cabinet with law change He added that the move to ensure the party had leadership of the Cabinet “had great symbolic value”. The changes come as policymakers seek to transform the economy by moving production up the value chain, a change referred to in party terminology as “high-quality development”. That project is complicated by a slow economic recovery from the Covid-19 pandemic, which has faced headwinds including stubborn deflation, an unfolding property crisis, and trade tensions with the US. Li also said that the changes to the Cabinet were important to “safeguard the authority of the party’s Central Committee led by comrade Xi Jinping”, and to make sure “party’s policies and decisions are being fully and effectively implemented in the work of state organs”. A meeting of the 24-member Politburo hosted by Xi in September provided “scientific guidance” to the process, Li added. Those comments highlight the party’s philosophy that it should handle all aspects of policy, and that government officials are strictly limited to implementing their edicts. That may be a concern for investors, given that Xi has elevated the significance of his ideology and national security matters. In the 1980s as China’s reform and opening kicked off, paramount leader Deng Xiaoping encouraged the clear separation of the party and state. That arrangement allowed the State Council to have a certain degree of influence over decision-making that was free of party priorities. Bloomberg BY YIMOU LEE & FABIAN HAMACHER Reuters The changes would emphasise the party’s leadership over the Cabinet, and encourage it to follow certain ideologies including Xi Jinping Thought.”

TUESDAY MARCH 12, 2024 17 THEEDGE CEO MORNING BRIEF WORLD (March 11): Reddit Inc and its investors are seeking to raise as much as US$748 million (RM3.50 billion) in what would be one of the biggest initial public offerings (IPOs) so far this year, according to people familiar with the matter. The social media platform plans a sale of 22 million shares for US$31 to US$34 each, said the people, who asked not to be identified because the information wasn’t public yet. The company was seeking a valuation of as much as US$6.5 billion in the listing, Bloomberg News has reported. The people said the company is setting aside about 1.76 million shares in the IPO to be bought by users and moderators who created accounts before Jan 1. Those shares won’t be subject to a lockup period, meaning the owners can sell them on the opening day of trading, according to Reddit’s filings with the US Securities and Exchange Commission. A representative of Reddit didn’t immediately respond to a request for comment. Reddit’s valuation Reddit’s more than two-year slog to listing reflects the ups and downs of the market, beginning with its initial filing in 2021, when IPOs on US exchanges set an an all-time record of US$339 billion, according to data compiled by Bloomberg. Reddit raised funds that year valuing it at US$10 billion, and Bloomberg News reported the following year that it could be valued at as much as US$15 billion in an IPO. Meanwhile, IPOs in the US plummeted as the coronavirus pandemic dragged on, totalling only US$26 billion last year, the data show. In January, Bloomberg News reported that Reddit was weighing feedback from early meetings with potential IPO investors that it should consider a valuation of at least US$5 billion. The company is a high-profile addition to the year’s roster of newly and soon-tobe public companies. The biggest of those listings was the US$1.57 billion offering by Amer Sports Inc in January. Astera Labs Inc, a software maker focused on artificial intelligence, said in a filing last Friday that it would seek up to US$534 million in its IPO, which will likely proceed Reddit’s. Reddit’s listing will be watched closely by IPO candidates such as Microsoft Corpbacked data security start-up Rubrik Inc and healthcare payments company Waystar Technologies Inc. Read the full story Reddit’s planned IPO to seek up to US$748 mil (March 11): Bitcoin topped US$72,000 (RM337,320) for the first time, advancing for a sixth straight day and taking gains this year to almost 70%, on the back of massive inflows into US exchange-traded funds (ETFs). The original cryptocurrency rose as much as 4% to US$72,234 on Monday. Smaller tokens like Ether, Solana and Avalanche also advanced. The crypto gains came even as equities traded broadly lower ahead of a key report on US inflation. “This rally comes following a weak Asian trading session in which shorts tested the conviction of longs — it appears the longs have given a rather convincing positive answer,” said Richard Galvin, founder of Australia-based crypto-focused investment firm DACM. Investors have poured a net almost US$10 billion into a batch of new Bitcoin ETFs since they launched in the US two months ago, igniting a broad surge in crypto markets. Digital assets scored more wins on Monday, as the London Stock Exchange confirmed it will accept applications for admitting Bitcoin and Ether exchange-traded notes and Thailand’s securities regulator said retail investors will be allowed to buy overseas crypto ETFs. The success of the crop of Bitcoin ETFs add to a range of bullish signals for cryptoassets. Perhaps the most anticipated milestone is the quadrennial “halving” scheduled for April, when Bitcoin’s supply growth will be reduced by half. Other technical indicators point to growing interest among both institutional and retail investors. Open interest on Chicago-based CME Group’s Bitcoin futures market has jumped 44% from this year’s low, while a rebound in the so-called funding rate signals that traders are increasingly willing to pay a premium for opening leveraged long positions in Bitcoin. MicroStrategy Inc, the enterprise software firm that has made buying Bitcoin part of its corporate strategy, said on Monday that it spent US$822 million purchasing more tokens from Feb 26 through March 10. Bitcoin tops US$72,000 for the first time as rally builds steam BY SIDHARTHA SHUKLA Bloomberg BY AMY OR Bloomberg BLOOMBERG

TUESDAY MARCH 12, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (March 11): Former president Donald Trump defended his plan to increase tariffs on Chinese imports if elected for a second term, saying he did not mind if China retaliated with tariffs of its own on US goods. In an interview with CNBC’s “Squawkbox” on Monday, Trump said he was not concerned that potential retaliatory action from China would harm US growth. “That’s OK, they might do that, but they didn’t do that with me,” he said. “Even if they do, let American companies come back to America.” Trump has privately floated a tariff as high as 60% on Chinese imports if re-elected. He reaffirmed that stance in the interview, mentioning how Chinese manufacturers have relocated to Mexico to sell to the US. “I would say to China: If you’re building a plant on our border to build cars in Mexico and to sell them into the United States, I’m putting a 50% tariff on all those cars,” he added. The Biden campaign did not immediately respond to Trump’s comments. Trump also attacked the Chinese-owned social media company TikTok, agreeing that the popular app poses a national security threat, but suggested he no longer supported banning it in the US. During his administration, he threatened to ban TikTok from the US market. “If you ban TikTok, Facebook and others, but mostly Facebook, will be a big beneficiary. And I think Facebook has been very bad for our country, especially when it comes to elections,” he said. Trump defends tariffs, dismisses threat of retaliatory moves (March 11): A growing number of Bank of Japan (BOJ) policymakers are warming to the idea of ending negative interest rates this month on expectations of hefty pay hikes in this year’s annual wage negotiations, four sources familiar with its thinking said. Upon ending negative rates, the central bank is also likely to overhaul its massive stimulus programme that consists of a bond yield control and purchases of riskier assets, they said. But an imminent shift is a close call as there is no consensus within the nine-member board on whether to pull the trigger in its upcoming March 18-19 meeting, or hold off at least until the subsequent meeting on April 25-26, they said. Many BOJ policymakers are closely watching the outcome of big firms’ annual wage negotiations with unions on March 13, and the first survey results to be released by labour umbrella Rengo on March 15, to determine how soon to phase out their massive stimulus. Significant pay hikes will likely heighten the chance of action in March, as the offers by big firms usually set the tone for those by smaller firms nationwide, the sources said on condition of anonymity due to the sensitivity of the matter. The BOJ hopes that solid wage increases will coax consumers to spend more, boosting demand and prices after years of economic stagnation and deflation. “If the spring wage negotiation outcome is strong, the BOJ may not necessarily need to wait until April,” one of the sources said, a view echoed by another source. But the BOJ may hold off until April if many board members prefer to wait for next month’s “tankan” business sentiment survey and the bank’s regional branch managers’ report on the nationwide wage outlook, before making a final decision, they said. The yen has been rising against the dollar on growing speculation that the BOJ could end negative rates soon, and bets of imminent rate cuts by the US Federal Reserve. It rose to 146.95 to the dollar last Friday, its highest level since early February. Weak data a risk The BOJ has long targeted inflation at 2%, and has guided short-term rates at -0.1% and the 10-year bond yield around 0% under a policy dubbed yield curve control (YCC). With inflation exceeding the target for well over a year and prospects for sustained wage gains heightening, many market players expect the central bank to end its negative interest rate policy this month or in April. Upon pulling short-term rates out of negative territory, the central bank is likely to ditch its 10-year bond yield target, the sources said. To avoid an abrupt spike in long-term rates, the BOJ will likely commit to intervening in the market when needed to stem sharp rises, or offer guidance on the amount of government bonds it will keep buying, they said. Japan’s Jiji news agency reported last Friday the BOJ is considering replacing YCC with a new quantitative framework that will show in advance how much bonds it will buy in the future. Prospects of continued solid wage growth, driven by rising living costs and an intensifying labour shortage, have heightened momentum for an end to negative rates in March. Japan’s largest trade union group Rengo said last Thursday average wage hike demands hit 5.85% for this year, topping 5% for the first time in 30 years. Read the full story Bank of Japan leaning towards exiting negative rates in March — sources BY LEIKA KIHARA Reuters BY STEPHANIE LAI Bloomberg But an imminent shift is a close call as there is no consensus within the nine-member board on whether to pull the trigger in its upcoming March 18-19 meeting, or hold off at least until the subsequent meeting on April 25-26, said sources. BLOOMBERG

TUESDAY MARCH 12, 2024 19 THEEDGE CEO MORNING BRIEF WORLD Hillhouse, Boyu in talks to invest in GDS’s Southeast Asia data centres Alibaba overhauls incentives to entice staff as stock languishes BY DONG CAO, GILLIAN TAN & MANUEL BAIGORRI Bloomberg (March 11): Alibaba Group Holding Ltd will roll out a new employee incentive plan starting April that combines equity with cash, a significant adjustment designed to help the e-commerce giant attract and retain talent despite fierce competition. The Hangzhou-based company told employees in a company-wide memo the changes are aimed at “improving the certainty and liquidity” of its compensation, according to people who have seen the message. Starting April 1, staff get “longterm cash” in addition to stock options. Those instruments will also vest once a quarter instead of only once a year, according to the memo. Alibaba representatives didn’t respond to an emailed request for comment. The latest move comes as Alibaba’s stock hovers close to historic lows, diluting their effectiveness as a motivating tool. The company, once worth more than US$800 billion (RM3.75 trillion), has struggled to revitalise its businesses after years of regulatory scrutiny and an economic downturn. Chief executive officer Eddie Wu has reshuffled senior leadership, led investments into artificial intelligence, and explored the sale of non-core assets, among other efforts to revive growth at divisions from commerce to the cloud. Its media and entertainment arm on Monday pledged at least HK$5 billion (US$639 million or RM2.99 billion) of investment in Hong Kong film and content over the next five years. One of Wu’s top priorities is shoring up morale among its 200,000-plus workforce, particularly as Beijing’s campaign to curtail private enterprise saps growth across the tech industry. Other Chinese tech companies have also made changes to employee compensation to boost morale and retention, in the face of intense rivalry and uncertain consumption. Last year, ByteDance Ltd offered to buy back employee shares at a price 3% above a previous exercise, which the company said was aimed at providing liquidity and motivating employees. Rival JD.com Inc also planned sweeping salary increases for its workforce this year, including nearly doubling the fixed salaries for some of its front-line staff. (March 11): Alternative asset managers Hillhouse Capital, Boyu Capital and CDH Investments are in advanced talks to invest in GDS Holdings Ltd’s data centre business outside China, according to people familiar with the situation, sending the company’s shares up as much as 24% in Hong Kong on Monday. An agreement on a total investment of US$500 million (RM2.34 billion) to US$600 million may be reached as soon as the coming weeks, though no final decisions have been made, the people said, asking not to be identified because the matter is private. Other investors could also be involved in a deal, they said. GDS’s shares jumped the most since November 2022 following the Bloomberg News report. They pared the gain to 18% as of 3.36pm in Hong Kong. The company now has a market value of about US$1.5 billion. Representatives for Hillhouse, a longterm investor in GDS, didn’t respond to a request for comment. Boyu, CDH and GDS also didn’t respond to requests for comment. Shanghai-based GDS is expanding in Southeast Asia and has been contemplating selling a minority stake, Bloomberg reported in February last year. Private equity firms that traditionally focused on China are increasingly shifting their attention to other areas like Southeast Asia. Last month, Hillhouse bought Singapore-based business services provider InCorp Global from private equity firm TA Associates for an undisclosed amount. GDS develops and operates dozens of data centres in cities including Beijing, Guangzhou, Shanghai and Shenzhen, according to its website. As part of its expansion overseas, it is providing services at a third-party data centre in Singapore and building facilities in Malaysia and Indonesia. REUTERS BY SARAH ZHENG & JANE ZHANG Bloomberg

tuesday march 12, 2024 20 The E dge C E O m o rning brief world BENGALURU/PARIS/SYDNEY (March 11): At least 50 people were hurt when a Boeing 787 operated by LATAM Airlines dropped abruptly mid-flight from Sydney to Auckland on Monday, according to the airline and a New Zealand health service organisation that treated the injured. The aircraft landed at Auckland airport as scheduled on Monday afternoon, according to FlightAware. “LATAM Airlines Group reports that flight LA800, operating the Sydney-Auckland route today, had a technical event during the flight which caused a strong movement,” the carrier said. One person is in a serious condition while the rest suffered mild-to-moderate injuries, a spokesperson for Hato Hone St John, which treated roughly 50 people at the airport, said. “The plane, unannounced, just dropped. I mean it dropped unlike anything I’ve ever experienced on any kind of minor turbulence, and people were thrown out of their seats, hit the top of the roof of the plane, throwing down the aisles,” passenger Brian Jokat told the BBC. The cause of the apparent sudden change of trajectory could not be ascertained immediately. Safety experts say most airplane accidents are caused by a cocktail of factors that need to be thoroughly investigated. “Some of the roof panels were broken from people being thrown up and knocking through the plastic roof panels in the aisle ways. And there was blood coming from several people’s heads,” Jokat, who was not injured in the incident, said. He said passengers who were doctors on the plane provided bandages and neck braces for people who were severely injured. The eight-year-old Boeing 787-9 Dreamliner, according to flight tracking website FlightRadar24, was on its way to Santiago via Auckland. In 2008, dozens of people were injured when another wide-body jet, an Airbus 330 operated by Qantas Airways, dropped sharply because of faulty readings from a flight data computer while heading for Perth in Australia. Boeing said it was working to gather more information and will provide any support to the airline. Its shares were down 3% in US morning trading. The Wall Street Journal reported on Saturday the US Department of Justice has opened a criminal investigation into 737 MAX mid-air cabin-panel blowout on an Alaska Airlines flight in January. At least 50 hurt as LATAM’s Boeing 787 to Auckland ‘just dropped’ mid-flight (March 11): Moody’s Ratings stripped state-backed developer China Vanke Co of investment-grade credit rating and warned of potential further cuts, predicting credit metrics and liquidity will weaken because of falling home sales and funding uncertainties. The rating firm withdrew Vanke’s Baa3 issuer rating and assigned it company a Ba1 corporate family rating, it said in a statement on Monday night. All of Vanke’s ratings are on review for downgrade. “The rating actions reflect Moody’s expectation that China Vanke’s credit metrics, financial flexibility and liquidity buffer will weaken over the next 12-18 months because of its declining contracted sales and the rising uncertainties over its access to funding amid the prolonged property market downturn in China,” said Kaven Tsang, a Moody’s senior vice president. The move is likely to further shake confidence in China’s property sector, as Vanke has been seen as a bellwether for Beijing’s support for major developers with strong ties to the state. The firm, those, still carries non-junk grades at S&P Global Ratings and Fitch Ratings. If either cuts Vanke to junk levels, the builder will become what is known as a “fallen angel” and could prompt investment-grade bond investors to sell their holdings. Chinese developer Vanke cut to junk territory by Moody’s Recent debt-repayment concerns had pushed the developer’s shares and bonds to record lows. Vanke also is facing pressure from several major insurers that have become concerned over potential liquidity stress at the company and are seeking to protect their privately issued debt. At least three Beijing-based insurers sent executives to Vanke’s headquarters in Shenzhen recently to discuss debt repayment plans under the local government’s coordination, according to people familiar with the matter. Read also: Chinese regulators ask large banks to step up support for Vanke, sources say by Pearl Liu & Evelyn Yu Bloomberg by Urvi Dugar, Shivansh Tiwary, Gursimran Kaur, Abhijith Ganapavaram, Tim Hepher & Lewis Jackson Reuters reuters China Vanke Co’s Qibao Vanke Plaza in Shanghai. Moody’s Ratings stripped state-backed developer China Vanke Co of investment-grade credit rating and warned of potential further cuts. bloomberg

TUESDAY MARCH 12, 2024 21 THEEDGE CEO MORNING BRIEF WORLD MANILA (March 11): American companies are set to announce investments amounting to more than US$1 billion (RM4.68 billion) in the Philippines, US Commerce Secretary Gina Raimondo said during an official visit to Manila on Monday. Raimondo is heading a two-day trade and investment mission, the first of its kind for the Philippines. The delegation includes executives from 22 companies including United Airlines, Alphabet’s Google, Visa, KKR Asia Pacific and Microsoft. The investments will span areas like solar energy, electric vehicles and digitisation, she said. United said last week it would launch new flights from Tokyo-Narita to Cebu, Philippines starting July 31. US efforts to deepen economic ties with the Philippines come in tandem with increased cooperation in defence. Both US President Joe Biden and Philippine President Ferdinand Marcos Jr are keen to counter what they see as aggressive actions by China in the South China Sea and near Taiwan. Speaking at a joint briefing with Philippine officials after meeting with Marcos at the presidential palace, Raimondo said Washington’s commitment to expanding trade and investment in the Philippines extends to the larger Indo-Pacific region through the Indo-Pacific Economic Framework — a 14-nation US-led group. Raimondo reiterated the US has no intention of “decoupling” from China but it would not be allowed access to Washington’s advanced technology. “My job is to protect the American people and to make sure that our most sophisticated technology, including semiconductor technology, artificial intelligence technology that we have and China doesn’t have, that they can’t access it and use it to enable the Chinese military,” Raimondo said. She also reaffirmed the US’ alliance with the Philippines, calling it “ironclad”. The Philippines has a 73-year-old mutual defence treaty with the US, making it Washington’s oldest treaty ally in the Asia-Pacific region. After her Manila visit, Raimondo will travel to Thailand for two days of meetings. She will lead members of the US President’s Export Council to identify opportunities for the two countries to strengthen cooperation in areas such as manufacturing and supply chain resiliency. US companies to announce investments of over US$1 bil in Philippines (March 11): Semiconductors startup Silicon Box will invest €3.2 billion (RM16.4 billion) in Italy to build a chip factory in the north of the country, Industry Minister Adolfo Urso said Monday. “Recent global upheavals highlight the need to build a more resilient supply chain for semiconductors in Europe,” Urso told reporters. The chiplet production plant is expected to generate 1,600 jobs at full capacity. The announcement involving Singapore-based Silicon Box came after the BUENOS AIRES (March 11): Argentina’s government will launch a huge voluntary debt swap on Monday of peso and some dollar-linked instruments set to mature in 2024, a bid to push back repayments amid a major economic crisis hammering the South American country. The debt, which includes 15 different instruments with a total value pegged at around US$65 billion (RM304.51 billion), may be exchanged for new inflation-linked instruments with maturity dates ranging from 2025 to 2028, according to the government. “The eligible securities in the hands of the public and private sector for the swap operation amount to some 55 trillion Argentine peso [RM304.32 billion]” a government source said, adding around 70% of the maturities were in the hands of the public sector. The government will open the auction process on Monday morning and will close it on Tuesday evening. Settlement of the offers received and awarded will take place on Friday. Argentina’s new president, libertarian Javier Milei, is battling to restore economic stability with a tough austerity and cost-cutting drive, which has helped improve the fiscal balance but dampened growth and economic activity. The grains producing country is also grappling with inflation running at over 250%, poverty that is climbing towards 60%, depleted central bank foreign currency reserves, and a myriad of currency controls to protect the embattled peso. government failed to persuade US-based chip-maker giant Intel Corp, which has a market capitalisation of about US$186 billion (RM871 billion), to invest in Italy. Silicon Box closed a US$200 million financing round in January, bringing its valuation to more than US$1 billion. The government did not immediately clarify where the funding will come from. More broadly, Europe and the US are increasingly seeking to bolster national output of chips to reduce the reliance on Asian facilities and to avert the risk of supply shortages build a factory in the country. Intel shelved a project for an investment in a European back-end manufacturing factory. It chose Poland for a test and assembly site worth US$4.6 billion. The company is expected to invest €30 billion in a new chip factory in the German city of Magdeburg, supported by €10 billion in subsidies from Berlin. Strategic investors into Silicon Box include Hillhouse Capital, the corporate venture arm of Lam Research, and Tata Electronics. Singapore startup to invest €3.2 bil in Italy chips factory Argentina launches US$65 bil bond swap to push back 2024 debt BY FLAVIA ROTONDI Bloomberg BY WALTER BIANCHI & ELIANA RASZEWSKI Reuters BY MIKHAIL FLORES Reuters REUTERS

TUESDAY MARCH 12, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (March 11): In China, electric vehicles with built-in fridges and even in-car karaoke systems are considered passé. Instead, carmakers are turning to increasingly novel add-ons from beds to cooktops to boost sluggish sales. Top electric vehicle (EV) makers are facing a slowdown in demand at home as consumers curb spending, just as geopolitical tensions with major Western economies cloud the outlook for exports. Meanwhile for smaller players, the ability to think creatively is core to their survival, with the cut-throat industry bracing for a likely wave of consolidation as China looks to rein in the excesses left behind by years of generous subsidies. The high-tech offerings also highlight the risk for Western manufacturers should they fall even further behind in carving out market share in the world’s biggest auto market. China-made vehicles are viewed by local customers as better suited to their extensive technology demands and preference for high levels of connectivity. “While legacy automakers still only focus on the drivability of a car, Chinese companies are not satisfied with that,” Wang Binggang, an Xpeng Inc salesperson, said in a showroom in central Shanghai. “We are extending the possibilities to all kinds of living and recreational scenarios, and that’s part of the reason why customers love e-cars these days.” Here’s a look at some of the offbeat offerings now available in China: 1. Sleeping kits Just one click on the in-car display in Xpeng’s G9, a sport utility vehicle (SUV) with a starting price at 263,900 yuan (US$36,700 or RM171,967), and it turns into a bed that comfortably sleeps two people. Drivers who install the so-called sleeping kit feature are able to make both front and back seats lay completely flat, then watch as a double-size air mattress unfolds and is automatically inflated. The company is looking to muscle in on China’s increasingly popular camping culture, but the car may also prove a hit with desk jockeys enduring the country’s notoriously grueling office hours and looking for a place to nap. The feature was an unexpected savior for some families during February’s Lunar New Year holiday. Long waits at charging stations, traffic jams that lasted for hours and snowstorms that left tens of thousands of drivers stranded across the country saw many in sudden need of a safe place to sleep. 2. In sync heartbeat One of the most notable features of an electric vehicle is how much quieter, and smoother to accelerate, it is compared with a combustion-engine car. But the downside is that it can cause or worsen motion sickness. And the way an EV’s brakes work can also add to the feeling of imbalance for some drivers and passengers. Hangzhou-based Geely Automobile Holdings Ltd says it has solved that problem in its Galaxy E8 electric sedan, which vibrates at 1.25 hertz — the same as a human heartbeat — when the car is driving on undulating terrain. The car, which went on sale on Jan 5 and starts at US$24,450, also has a braking system that minimises the jerking sensation often noticed by people when they first start driving an EV. Bloomberg China EV makers woo buyers with in-car beds, kitchens and drones Read the full story Read also: Next Autopilot trial to test Tesla’s blame-the-driver defence 3. Tailgate ready Li Auto Inc’s L-Series has become one of the most popular SUV ranges in China, offering spacious interiors, extended-range capabilities and in-built massagers in its seats. While that’s seen sales boom, it’s also given rise to challengers looking to make their own mark among the country’s middle-class families. That includes Rox Motor Tech, a startup established in 2021 by the founder of a robot vacuum maker, which is looking to win over lovers of the outdoors. Its first production model, the Polestones 01, includes a rear-mounted camping-style kitchen with an induction cooker and water dispenser. It’s also got a sun canopy that attaches to the roof, which the carmaker says can be assembled, or taken down and stowed away, in minutes. The car costs US$48,700. 4. Drones BYD Co, the world’s largest EV manufacturer, is looking to make its premium US$153,000 Yangwang U8 more enticing for tech fans. Its partnership with Shenzhen-based drone giant DJI allows a small craft to launch from and land on a retractable case mounted to the roof and it can even fly back to dock once the car reaches its final destination. Movements are controlled on the in-car display screen, and an in-built system can charge the drone’s three batteries and swap cells when the power runs down. The high-tech offerings highlight the risk for Western manufacturers should they fall even further behind in carving out market share in the world’s biggest auto market. REUTERS

TUESDAY MARCH 12, 2024 23 THEEDGE CEO MORNING BRIEF WORLD LOS ANGELES (March 11): Oppenheimer, the blockbuster biopic about the race to build the first atomic bomb, claimed the prestigious best picture trophy at the Academy Awards on Sunday. Director Christopher Nolan’s film starred Irish actor Cillian Murphy as theoretical physicist J Robert Oppenheimer, the leader of the US effort in the 1940s to create a weapon devastating enough to end World War Two. Murphy won the best actor trophy, and Nolan was named best director. Emma Stone won best actress for Poor Things. A three-hour historical drama about science and politics, Oppenheimer became an unlikely box office hit and grossed US$953.8 million (RM4.47 billion), in addition to widespread critical praise. It was the first of Nolan’s films to win best picture. The director has previously won acclaim for The Dark Knight Batman trilogy, Inception, Memento and other movies. Oppenheimer triumphed over feminist doll adventure Barbie, a movie it had battled in a box office showdown dubbed “Bar- ‘Oppenheimer’ crowned best picture at the Oscars MOSCOW (March 11): Russia said Pope Francis’s call for talks with Moscow to end the war in Ukraine was a request to Kyiv’s Western allies to abandon their ambition to defeat Russia and to recognise the West’s mistake in the Ukraine war, Italy’s ANSA news agency reported. Pope Francis has said that Ukraine should have what he called the courage of the “white flag” and negotiate an end to the war with Russia that followed Moscow’s full-scale invasion two years ago and that has killed tens of thousands. “The way I see it, the Pope is asking the West to put aside its ambitions and admit that it was wrong,” the ANSA news agency quoted Russian Foreign Ministry spokeswoman Maria Zakharova as saying. Zakharova said that the West was using Ukraine as an instrument of its ambitions to weaken Russia. As for Russia, “we have never blocked the negotiations,” she said, adding that the situation in Ukraine was “at a dead end”. Ukraine on Sunday rebuffed Pope Francis’s call to negotiate an end to the war with Russia, with President Volodymyr Zelenskiy saying the pontiff was engaging in “virtual mediation” and his foreign minister saying Kyiv would never capitulate. President Vladimir Putin sent thousands of troops into Ukraine in February 2022, triggering a full-scale war after eight years of conflict in eastern Ukraine between Ukrainian forces on the one side and pro-Russian Ukrainians and Russian proxies on the other. Russia says Pope’s appeal on Ukraine war is to the West Putin says that shortly after he sent troops into Ukraine, Moscow and Kyiv almost agreed a ceasefire but that it was torpedoed by Britain. Reuters reported last month that Putin’s suggestion of a ceasefire in Ukraine to freeze the war was rejected by the US after contacts between intermediaries. Putin casts the Ukraine war as an existential battle between sacred Russian civilisation and an arrogant West which he says is in cultural, political and economic decline and which sought to humiliate Russia after the 1991 fall of the Soviet Union. The West casts Putin’s invasion as an imperial-style land grab that challenges the post-Cold War international order and pits Russia against the West. Ukraine says it is fighting for its existence and will not rest until every last Russian soldier is ejected from its territory. Zelenskiy said last week that Russia will not be invited to the first peace summit due to be held in Switzerland. Reuters BY LISA RICHWINE Reuters (From front right) Director Christopher Nolan and producers Emma Thomas and Charles Roven won the Oscar for best picture for ‘Oppenheimer’ during the Oscars show at the 96th Academy Awards in Hollywood, Los Angeles, California, the US on Sunday. benheimer”. Other best picture contenders included The Holdovers, a dramedy set in a New England boarding school, and the Holocaust tale The Zone of Interest. In supporting actor categories, Robert Downey Jr of Oppenheimer and The Holdovers star Da’Vine Joy Randolph claimed their first Academy Awards. Downey, who was nominated for an Oscar in 1993 before his career was derailed by drug use, won his honour for playing Oppenheimer’s professional nemesis. “I’d like to thank my terrible childhood and the Academy, in that order,” Downey joked before he saluted his wife Susan, who he said found him as a “snarly rescue pet” and “loved him back to life”. Randolph won the best supporting actress trophy for playing a grieving mother and cafeteria worker in the comedy set in a New England boarding school. She shed tears as she accepted her award. “For so long, I always wanted to be different, and now I realise I just need to be myself,” she said. “I thank you for seeing me.” British Holocaust drama The Zone of Interest was named best international feature. Director Jonathan Glazer addressed the Israel-Gaza conflict in his acceptance speech. “Right now we stand here as men who refute their Jewishness and the Holocaust being hijacked by an occupation which has led to conflict for so many innocent people. Whether the victims of October the 7th in Israel or the ongoing attack on Gaza. All the victims of this dehumanisation. How do we resist?” he said to cheers and applause. The Boy and the Heron, Japanese director Hayao Miyazaki’s semi-autobiographical film about grief, was named best animated feature. Winners were chosen by the roughly 10,500 members of the Academy of Motion Picture Arts & Sciences. Read the full story REUTERS

TUESDAY MARCH 12, 2024 24 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (March 8, 2024) CAPESIZE Throughout the week, the capesize market experienced shifts in sentiment and activity. The week commenced robustly in the Pacific, with all three miners bustling with activity, driving up rates, and causing C5 to spike by at least US$1. However, as the week progressed there was a notable softening in market sentiment, particularly evidenced by a substantial drop in the BCI 5TC which plummeted by US$3,142 to reach US$31,260, and the C5 index experienced a significant drop of US$1.56 to US$12.90. This decline was attributed to subdued activity in both the Pacific and Atlantic markets. In the Atlantic, bids were swiftly withdrawn from South Brazil and West Africa to the Far East, widening the gap as owners sought to resist. However, the market saw a turnaround towards the end of the week, influenced by positive movements in the Forward Freight Agreements (FFA) market and a pickup in activity in both basins. In the Pacific brokers have also noticed an increase in operator-controlled cargoes helping the C5 index to edge back up, with the C5 index ending the week at US$14.40. Activity in the Atlantic notably picked up, particularly from South Brazil and West Africa to the Far East. With reports of fixtures in the high US$29s from Tubarao to Qingdao, followed by US$30.50, and today there are reports of US$31.25 concluded. All in all, it has been a volatile but positive week, illustrated by the BCI 5TC rising by US$2,205 to close at US$35,201. PANAMAX Mixed market signals highlighted well with a volatile FFA market failed to dampen spirits in the Panamax sector, with significant gains made. Transatlantic volume remained thin still, but positive sentiment radiated from firmer rates on the fronthaul trips. South America mid-week became the market’s driving force, with the April arrival window absorbing several vessels at firmer rates compared to end-March where rates inevitably became discounted. Typically, some of the well described units were able to achieve around the US$20,000 mark arrival delivery Singapore for route P6 trips. This seemingly impacted positively on south positions in the Pacific basin with solid levels of demand from Indonesia and Australia adding some gravitas to an already well-supported market, with US$20,000 achieved a few times on 82,000dwt types on Australia mineral round trips. Period activity was muted possibly impacted by a volatile FFA market, but reports emerged of a 93,000dwt delivery China fixing at US$16,250 basis four to seven months, also an 81,000dwt open North China fixed 12 to 14 months trading at 122.5% of BPI. ULTRAMAX/SUPRAMAX A week of mixed fortunes for the owning side of things. The Atlantic overall lacked much fresh impetus certainly from the US Gulf, whilst there was also limited possibilities from the South Atlantic. The Continent-Mediterranean saw some action although rates generally remained flat. However, a more positive feel from the Asian arena with tonnage supply remaining tight, the rates being seen were healthy. Period cover was short, a 58,000dwt open China was fixed for one year at US$16,500, and a 56,000dwt open SE Asia fixed seven to nine months at US$16,000. From the Atlantic, a 61,000dwt open West Africa fixed a trip to China with manganese ore at US$28,500 and a 58,000dwt open Mediterranean fixed a trip to the US Gulf at US$16,000. From Asia a 61,000dwt open Singapore fixed a trip via Malaysia redelivery SE Asia at US$21,000. A 56,000dwt open Philippines fixed a trip via Indonesia redelivery Bangladesh at US$24,000. It remains to be seen if the optimism in the Asian basin can continue through to the upcoming week. HANDYSIZE After an extended period of decline, the first shoots of positivity emerged in the US Gulf, with more visible activity, a 39,000dwt opening in Tampa fixing to the Continent with grains at US$11,500 whilst a 40,000dwt fixed from Baltimore to Turkey with an intended cargo of scrap at US$13,000. The South Atlantic also showed promise of improvements with a 36,000dwt rumored to have fixed from Antonina to the Continent with sugar at around US$18,500 and a 38,000dwt fixing from Recalada to WC South America with grains at US$27,000. The positivity seen in Asia last week continued for a majority of the week with rumors of upper teens being achieved on larger handies for trips from South East Asia via Australia to China and a 38,000dwt logger was rumored to have fixed for 2 to 3 laden legs in the US$17,000’s but as the week progressed there was a shift in balance and numbers had begun to soften as cargo availability reduced. CLEAN LR2 LR2 freight levels in the MEG looked to have reached a floor this week. The 75kt MEG/ Japan TC1 index bottomed out at WS144 and has since returned to WS151. The 90kt MEG/UK-Continent TC20 trip to the UK-Continent similarly reached a floor of US$4.38 million mid-week then climbing back up to US$4.57 million at time of writing. West of Suez, Mediterranean/East LR2 freight remained in the doldrums this week seen in the TC15 index going from US$4.81 million to US$4.51 million. LR1 In the MEG, LR’1’s followed the behaviour of their larger sisters this week. The 55kt MEG/Japan index of TC5 stopped at the WS166 level and is currently pegged at WS173. The 65kt MEG/UK-Continent of TC8 levelled off at US$3.89 million to then tick back up to US$3.97 million. On the UK-Continent, the 60kt ARA/West Africa TC16 trip trundled along in the midlow WS170’s all week. Read the full report

TUESDAY MARCH 12, 2024 25 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) HONG SENG CONSOLIDATED BHD 326.70 0.010 0.020 -20.00 102.2 TWL HOLDINGS BHD 99.30 0.000 0.035 16.67 192.4 PEGASUS HEIGHTS BHD 88.90 0.000 0.005 0.00 54.1 MINETECH RESOURCES BHD 77.80 -0.010 0.135 -6.90 240.9 POWERWELL HOLDINGS BHD 65.30 0.025 0.390 65.96 226.4 AMMB HOLDINGS BHD 59.90 -0.150 3.980 -0.75 13,166.0 SAPURA ENERGY BHD 50.40 0.000 0.045 0.00 826.9 MALAYSIA BUILDING SOCIETY BHD 44.50 0.015 0.800 12.68 6,577.8 WIDAD GROUP BHD 43.10 0.005 0.095 -80.41 294.2 MY EG SERVICES BHD 41.10 0.005 0.780 -4.29 5,818.4 VELESTO ENERGY BHD 38.50 -0.010 0.270 17.39 2,218.2 CLOUDPOINT TECHNOLOGY BHD 36.70 0.055 0.650 19.27 345.5 GENTING BHD 36.60 0.150 5.100 10.39 19,637.9 YTL POWER INTERNATIONAL BHD 36.00 0.000 3.670 44.49 29,738.6 NOTION VTEC BHD 31.30 0.005 0.540 68.75 278.5 YTL CORP BHD 28.10 0.010 2.510 32.80 27,525.6 YNH PROPERTY BHD 26.90 0.040 0.500 -88.24 264.2 BORNEO OIL BHD 24.90 0.000 0.010 -33.33 119.9 SMTRACK BHD 22.60 0.000 0.050 0.00 61.1 PAN MALAYSIA HOLDINGS BHD 22.60 0.010 0.140 47.37 130.0 Data as compiled on Mar 11, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) HONG SENG CONSOLIDATED BHD 0.020 100.00 326,726.2 -20.00 102.2 EA HOLDINGS BHD 0.010 100.00 2,490.5 0.00 64.5 BERTAM ALLIANCE BHD 0.130 44.44 20.1 -13.33 41.9 XOX NETWORKS BHD 0.035 40.00 1,090.1 0.00 39.7 ARK RESOURCES HOLDINGS BHD 0.540 38.46 1,889.6 54.29 37.6 MQ TECHNOLOGY BHD 0.020 33.33 755.5 -20.00 30.4 RAPID SYNERGY BHD 0.865 25.36 7,019.5 -96.96 92.5 GE-SHEN CORP BHD 3.440 25.09 1,413.5 196.55 419.9 G3 GLOBAL BHD 0.025 25.00 190.2 0.00 94.3 HEITECH PADU BHD 2.990 22.04 6,339.5 239.77 302.7 INFRAHARTA HOLDINGS BHD 0.200 17.65 3,765.6 90.48 81.2 THETA EDGE BHD 1.430 17.21 18,124.6 108.76 168.7 DOLPHIN INTERNATIONAL BHD 0.190 15.15 3,280.1 15.15 25.4 FLEXIDYNAMIC HOLDINGS BHD 0.200 14.29 311.9 0.00 59.9 CLASSITA HOLDINGS BHD 0.045 12.50 6,119.5 0.00 55.5 MAGMA GROUP BHD 0.240 11.63 4,553.7 -9.43 226.9 JOHAN HOLDINGS BHD 0.055 10.00 12.2 -15.38 64.2 YONG TAI BHD 0.275 10.00 2,620.6 -6.78 104.0 EDARAN BHD 1.290 9.32 4,426.5 48.28 74.7 CLOUDPOINT TECHNOLOGY BHD 0.650 9.24 36,668.0 19.27 345.5 Data as compiled on Mar 11, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.005 -50.00 824.0 -50.00 18.4 MICROLINK SOLUTIONS BHD 0.530 -36.14 13,409.7 -39.77 568.4 MLABS SYSTEMS BHD 0.010 -33.33 1,552.8 -33.33 14.5 SAUDEE GROUP BHD 0.020 -20.00 192.2 -20.00 31.2 SANICHI TECHNOLOGY BHD 0.020 -20.00 338.1 -20.00 28.1 ALDRICH RESOURCES BHD 0.030 -14.29 135.0 -25.00 33.4 NEXGRAM HOLDINGS BHD 0.030 -14.29 523.0 -33.33 21.5 HHRG BHD 0.220 -12.00 6,303.5 -34.33 190.9 ARB BHD 0.040 -11.11 356.2 -38.32 50.0 SAPURA RESOURCES BHD 0.280 -11.11 0.1 -25.33 39.1 PDZ HOLDINGS BHD 0.040 -11.11 350.2 -20.00 23.5 OMESTI BHD 0.250 -10.71 681.3 -13.79 135.2 VINVEST CAPITAL HOLDINGS BHD 0.045 -10.00 2,136.3 -25.00 43.6 DESTINI BHD 0.045 -10.00 10,348.3 -25.00 91.5 AURO HOLDING BHD 0.140 -9.68 5,691.6 -17.65 81.1 LANDMARKS BHD 0.200 -9.09 23.0 -35.48 134.3 SENI JAYA CORP BHD 0.405 -8.99 176.3 -20.59 86.5 SILVER RIDGE HOLDINGS BHD 0.325 -8.45 3,527.7 -71.74 72.3 KANGER INTERNATIONAL BHD 0.055 -8.33 403.8 -15.38 40.2 LOTUS KFM BHD 0.170 -8.11 1,676.0 -24.44 174.0 Data as compiled on Mar 11, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 120.600 -1.400 87.3 2.55 28,280.7 AJINOMOTO MALAYSIA BHD 19.000 -0.380 145.8 19.50 1,155.2 MICROLINK SOLUTIONS BHD 0.530 -0.300 13,409.7 -39.77 568.4 PPB GROUP BHD 15.260 -0.180 370.7 5.39 21,708.9 AMMB HOLDINGS BHD 3.980 -0.150 59,863.8 -0.75 13,166.0 VITROX CORP BHD 7.100 -0.120 255.9 -2.61 6,712.5 GENETEC TECHNOLOGY BHD 2.020 -0.100 4,715.2 -14.41 1,565.8 DUTCH LADY MILK INDUSTRIES 23.900 -0.100 282.6 3.20 1,529.6 GREATECH TECHNOLOGY BHD 4.630 -0.090 155.3 -3.54 5,806.9 PETRONAS DAGANGAN BHD 21.720 -0.090 272.2 -0.55 21,577.8 SYARIKAT TAKAFUL MALAYSIA 3.630 -0.080 519.9 -1.89 3,039.4 HENGYUAN REFINING CO BHD 2.660 -0.070 377.6 -13.36 798.0 HONG LEONG FINANCIAL GROUP 16.500 -0.060 392.4 0.36 18,896.5 AME ELITE CONSORTIUM BHD 1.710 -0.060 1,032.7 2.40 1,092.8 PERUSAHAAN SADUR TIMAH 2.890 -0.060 1.0 -6.77 373.1 BRITISH AMERICAN TOBACCO 8.070 -0.060 249.9 -13.13 2,304.2 PIE INDUSTRIAL BHD 3.220 -0.060 80.2 -0.92 1,236.6 YINSON HOLDINGS BHD 2.390 -0.050 2,987.5 -4.40 6,947.9 TAN CHONG MOTOR HOLDINGS 0.885 -0.050 374.0 -8.76 576.8 UNISEM M BHD 3.400 -0.050 171.9 2.72 5,484.5 Data as compiled on Mar 11, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) GE-SHEN CORP BHD 3.440 0.690 1,413.5 196.55 419.9 HEITECH PADU BHD 2.990 0.540 6,339.5 239.77 302.7 HEINEKEN MALAYSIA BHD 23.080 0.240 65.4 -4.39 6,972.4 THETA EDGE BHD 1.430 0.210 18,124.6 108.76 168.7 FRASER & NEAVE HOLDINGS BHD 29.220 0.200 86.0 4.38 10,717.3 RAPID SYNERGY BHD 0.865 0.175 7,019.5 -96.96 92.5 ARK RESOURCES HOLDINGS BHD 0.540 0.150 1,889.6 54.29 37.6 GENTING BHD 5.100 0.150 36,550.8 10.39 19,637.9 AMWAY MALAYSIA HOLDINGS BHD 7.830 0.140 207.4 33.16 1,287.1 GUAN CHONG BHD 1.940 0.140 7,802.5 6.01 2,278.6 ALLIANZ MALAYSIA BHD 19.080 0.120 76.4 3.47 3,395.7 PADINI HOLDINGS BHD 3.500 0.120 233.1 -0.28 2,302.7 TOMEI CONSOLIDATED BHD 1.450 0.110 3,102.0 16.94 201.0 MNRB HOLDINGS BHD 1.890 0.110 4,279.3 54.92 1,480.0 EDARAN BHD 1.290 0.110 4,426.5 48.28 74.7 PETRONAS GAS BHD 17.820 0.100 1,074.6 2.41 35,261.0 MPHB CAPITAL BHD 1.210 0.100 499.5 15.24 849.5 NEGRI SEMBILAN OIL PALMS BHD 3.650 0.090 37.7 16.61 256.2 PETRONAS CHEMICALS GROUP BHD 6.900 0.090 3,346.0 -3.63 55,200.0 HUME CEMENT INDUSTRIES BHD 2.720 0.090 393.2 20.89 1,706.1 Data as compiled on Mar 11, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,722.69 -68.66 -0.18 S&P 500 * 5,123.69 -33.67 -0.65 NASDAQ 100 * 18,018.45 -279.54 -1.53 FTSE 100 * 7,659.74 -33.89 -0.44 AUSTRALIA 7,704.22 -142.76 -1.82 CHINA 3,068.46 22.44 0.74 HONG KONG 16,587.57 234.18 1.43 INDIA 73,502.63 -616.75 -0.83 INDONESIA 7,381.91 7.94 0.11 JAPAN 38,820.49 -868.45 -2.19 KOREA 2,659.84 -20.51 -0.77 PHILIPPINES 6,872.24 -69.97 -1.01 SINGAPORE 3,138.42 -8.67 -0.28 TAIWAN 19,726.08 -59.24 -0.30 THAILAND 1,380.23 -6.19 -0.45 VIETNAM 1,235.49 -11.86 -0.95 Data as compiled on Mar 11, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 4,133.0039.00 OIL US$ 81.91-0.17 RM/USD 4.6818 RM/SGD 3.5208 RM/AUD 3.0986 RM/GBP 6.0126 RM/EUR 5.1193