The Edge - 28 June 2024

CEOMorningBrief FRIDAY, JUNE 28, 2024 ISSUE 787/2024 theedgemalaysia.com S&P AFFIRMS MALAYSIA’S SOVEREIGN RATINGS AT A-, OUTLOOK ‘STABLE’ p6 HOME: BNM plans to have banks provide basic accounts at minimal costs p7 US recovers Monet painting, Paris apartment from Jho Low p8 Lawyers of highway concessionaire CEO seek explanation from MACC p8 MARC downgrades YNH’s sukuk to BBIS, with negative outlook p11 MYAirline’s co-founder Allan Goh slapped with another lawsuit, this time from over 200 investors p12 Report on Page 2. BlackRock in Malaysia since the 90s, holds RM27.5 bil in assets here, says Zafrul THE EDGE FILE PHOTO Felda wins arbitration in second dispute with Rajawali over Eagle High stake sale The arbitral tribunal has ruled in Felda’s favour in its second bid to sell back the 37% Eagle High stake to the Indonesian group, says Ahmad Zahid See report on Page 3.

FRIDAY JUNE 28, 2024 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] KUALA LUMPUR (June 27): US-based global investment manager BlackRock, which has recently been in the spotlight due to the Malaysia Airports Holdings Bhd or MAHB (KL:AIRPORT) privatisation deal, has total assets worth RM27.5 billion in Malaysia since its entry into the country in the 1990s, according to Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Of the RM27.5 billion, Zafrul said RM20.5 billion is in the stock exchange market, with equity investments in 100 listed companies, including the industrial sector, with three of the largest entities being banking institutions. The remaining RM7 billion is invested in government and corporate bonds, Zafrul told the Dewan Rakyat on Thursday during the minister’s question time. Among BlackRock’s investments in the government bond market are Malaysia Sukuk Global Bhd, Export-Import Bank of Malaysia Bhd, Malaysia Wakala Sukuk Bhd, Petroliam Nasional Bhd (Petronas), and Malaysia Sovereign Sukuk Bhd. BlackRock also has investment interests in Tenaga Nasional Bhd or TNB (KL:TENAGA) amounting to RM8.6 million, Press Metal Aluminum Holdings Bhd (KL:PMETAL) amounting to RM625 million, and CelcomDigi Bhd KUALA LUMPUR (June 27): Malaysia has to exercise caution in positioning itself in its relations with other nations, in view of the growing complexities of global geopolitics, the Dewan Rakyat was told Thursday. In this regard, Foreign Minister Datuk Seri Mohamad Hasan said every invitation to Prime Minister Datuk Seri Anwar Ibrahim to visit other countries, including Russia, must be carefully planned and considered. “This is because official visits signal the respect for Malaysia’s bilateral relations with other countries. Malaysia wants to position itself as the middle state and not BlackRock in Malaysia since the 90s, holds RM27.5 bil in assets here, says Zafrul Tok Mat urges caution in way Malaysia positions itself amid shifting geopolitical landscape BY CHOY NYEN YIAU theedgemalaysia.com Bernama be seen as leaning towards any side because Malaysia’s foreign policy is based not only on diplomatic relations but also on trade ties. “There are many invitations, but not all invitations need to be accepted... we need to be cautious. We do not want to get caught up in the more complex world politics that could potentially harm our relations with other countries,” he said during the minister’s question time. He was responding to a supplementary question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) regarding when the prime minister will make an official visit HOME (KL:CDB) amounting to RM526 million. In addition, Zafrul said that BlackRock is a shareholder of several multinational companies operating in Malaysia, including Microsoft, Boeing, Intel, and Texas Instruments, which contribute to the development of the industry and the country’s economy through investment projects. Intel, according to Zafrul, has invested RM32 billion, employed more than 10,000 people, and contributed RM50 billion in export value for semiconductor components. Boeing, through its subsidiary Aerospace Composites Malaysia Sdn Bhd, has invested RM300 million, employed 900 workers, and contributed RM10 billion in export value for aerospace components. Meanwhile, Texas Instruments has invested RM13 billion, employed more than 2,000 people, and contributed RM20 billion in export value for electronic components. The minister added that if BlackRock withdraws its investments from Malaysia, it will have negative implications and effects on efforts to realise the country’s investment agenda. BlackRock, accused of involvement in the Palestinian genocide, is currently in the process of acquiring New York-based Global Infrastructure Partners (GIP). Last month, Khazanah Nasional Bhd, the Employees Provident Fund (EPF), GIP, and the Abu Dhabi Investment Authority — via a consortium named Gateway Development Alliance Sdn Bhd (GDA) — announced the plan to privatise MAHB. This has prompted several quarters, including former prime minister Tun Dr Mahathir Mohamad, to ramp up pressure, urging Putrajaya to scrap the deal. Machang Member of Parliament Wan Ahmad Fayhsal Wan Ahmad Kamal has reportedly stated that the opposition may take to the streets in protest against the deal. to meet Russian President Vladimir Putin. Meanwhile, Mohamad said Malaysia’s desire to join BRICS (Brazil, Russia, India, China and South Africa) is to ensure that the country does not contribute to a unipolar world (a situation where the majority of the world is controlled by one power in terms of economy, defence and cultural influence). “BRICS is a platform for us to view the world as not overly tilted towards any side or managed by one entity alone. BRICS is a coalition of major countries, a loose bloc that can amplify our voice so that Malaysia can be heard on many platforms,” he said.

FRIDAY JUNE 28, 2024 3 THEEDGE CEO MORNING BRIEF HOME Felda wins arbitration in second dispute with Rajawali over Eagle High stake sale KUALA LUMPUR (June 27): Johor Plantations Group Bhd (KL:JPG), slated for listing on the Main Market of Bursa Malaysia on July 9, announced that the 50 million new shares it offered to the Malaysian public under its initial public offering (IPO) have been oversubscribed by 2.18 times. In a statement, the group said it received a total of 9,555 applications for 159.01 million shares worth RM133.57 million from the Malaysian public. Johor Plantations offered 875 million shares under its IPO, representing 35% of its enlarged issued share capital. This comprises 797.5 million shares for institutional offering at a price to be determined by way of book building, and 77.5 million shares for retail offering at 84 sen per share. Of the retail offering portion, 50 million shares are made available to the Malaysian public via balloting, while the remaining 27.5 million shares are reserved for eligible persons. For the Bumiputera portion, a total of 3,184 applications for 39.28 million shares were received, representing an oversubscription rate of 0.57 times. For the non-Bumiputera portion, a total of 6,371 applications for 119.73 million shares were received, representing an oversubscription rate of 3.79 times. In addition, the shares made available to eligible persons have been fully subscribed. As for the institutional offering, the joint global coordinators and joint book-runners have confirmed that the 312.5 million shares offered to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), as well as 485 million shares offered to Malaysian and foreign institutional and selected investors have been fully placed out. A total of seven cornerstone investors have subscribed for an aggregate of 325.4 million shares, representing 40.8% of the institutional offering. Meanwhile, the remaining shares available for book building recorded an oversubscription rate of 4.19 times. The notices of allotment will be mailed to all successful applicants by July 4. Johor Plantations sees 2.18 times oversubscription for 50 mil IPO shares KUALA LUMPUR (June 27): An arbitral tribunal has ruled in favour of Felda-owned FIC Properties Sdn Bhd (FICP) in the company’s second attempt to exercise the put option to sell its 37% stake in PT Eagle High Plantations Tbk back to the Rajawali Group, Deputy Prime Minister Datuk Seri Ahmad Zahid said on Thursday. The tribunal, in its ruling on June 14, ordered either PT Rajawali Capital International or PT Rajawali Capital, or both of them, to fulfill their obligations under the put option by repurchasing the Eagle High Plantation shares at an agreed price set by FICP. “However, in order to comply with the Singapore International Arbitration Centre (SIAC) regulations and uphold FICP’s responsibilities, further details cannot be provided at this time,” Zahid said in a written parliamentary reply to Radzi Jidin (Perikatan Nasional-Putrajaya). The put option was part of the share sale agreement between FICP and Rajawali when FICP acquired the 37% stake back in 2015 for US$505.4 million (RM2.2 billion), or 580 Indonesian rupiah per share. This acquisition faced criticism due to the premium price, which was 95.86% higher than Eagle High’s market value at the time. FICP, which had to take up a RM2.5 billion financing facility from Govco Holdings Bhd — a unit of Minister of Finance Inc — to finance the acquisition, defaulted on the loan’s repayment in 2017. Eagle High is majority-owned by Rajawali, which is controlled by Indonesian tycoon Tan Sri Peter Sondakh, a known associate of former prime minister Datuk Seri Najib Razak. FICP issued its first put option notice in January 2019, citing Eagle High’s failure to meet the terms of the sale agreement, particularly in securing Roundtable on Sustainable Palm Oil (RSPO) certification for Eagle High within the stipulated 30-month period. Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, in a written parliamentary reply in February last year, said either PT Rajawali Capital International or PT Rajawali Capital was supposed to pay FICP US$678.09 million to buy back the stake. However, Rajawali disputed this and initiated arbitration proceedings to prevent Felda from exercising the option, with the outcome favouring Eagle High. Felda then attempted a second exercise of the option in May 2022, which Rajawali again disputed. “Felda and FICP consistently assert the validity of the put option rights, and we are pleased that the tribunal has definitively upheld this position in the published award,” Zahid said, noting that Felda is currently exploring options to acknowledge and implement the award. Zahid added that Felda has not recorded any profit or dividend earnings from its investment in the 37% shares of Eagle High Plantations. BY CHOY NYEN YIAU theedgemalaysia.com BY HEE EN QI theedgemalaysia.com Johor Plantations Group Bhd managing director Mohd Faris Adli (left) and chairman Tan Sri Dr Ismail Bakar at the launch of its prospectus on June 12. PATRICK GOH/THE EDGE

FRIDAY JUNE 28, 2024 4 THEEDGE CEO MORNING BRIEF E ELMINA BUSINESS PARK POISED FOR EXPONENTIAL GROWTH WITH UNVEILING OF STAGE 2 CONTINUES ON NEXT PAGE Locateis posiartery WviaSeamairpo• North• Guthr• Kuala• New K• Dama• Jalan ConvFRID AY J UNE 28 , 20 2 4 X8 THE EDGE CEO MORNING BRIEF Stage 1 Stage 2 Stage 1 of Elmina Business Park has been fully sold, and is the base of Google’s recently announced hyperscale data centre. AT A GLANCE Reliable Infrastructure with stable power supply and 5G infra-ready Connected via Land, Sea & Air 5KM to PLUS Highway, 19KM to Subang Airport & 40KM to Port Klang Accessible via 5 Major Highways GCE, LATAR, PLUS, DASH & NKVE Comprehensive Industrial Offerings Ready-built factories, Industrial Lots, Builtto-suit & Lease 110-acre parklands Designed for optimal work-life balance 1,500-acre Business Park Prime freehold address in Sg Buloh, Selangor UNRIVALLED CONNECTIVITY COMPLETE INDUSTRIAL SOLUTIONS Strategically located in Sungai Buloh, Elmina Business Park offers unrivalled accessibility and connectivity. It is just 5km from Malaysia’s key logistics artery, the North-South Expressway, and accessible via four major highways in the Klang Valley. The business park is within an hour’s drive of KL city centre, airports and seaport, ensuring your business is at the core of activity. Elmina Business Park is set for Stage 2, situated on one of the last tracts of prime industrial land in Sungai Buloh. Accessibility is further improved via a new direct interchange from the Guthrie Corridor Expressway that is targeted for completion by Year 2028. freehold industrial park in the Klang Valley and part of Sime Darby Property’s 6,500-acre award-winning City of Elmina. Thoughtfully curated with world-class infrastructure, wellness-driven facilities and practical design, Elmina Business Park has attracted a dynamic range of local and multinational businesses to set up operations here. lmina Business Park has raised the bar for industrial and business projects in the country. Spanning 1,500 acres of prime freehold land, it is the largest With a gross development value (GDV) of RM6.5 billion, Elmina Business Park offers industrial properties in multifunctional and practical layouts to suit varying expectations and requirements. Options range from ready-built factories to customisable built-to-suit and lease industrial properties. The first phase of ready-built factories in 906-acre Stage 2 will offer 60 units of all-new twin factories, suitable for light and medium industries. Dubbed The Signature Collection, the twin factories have two layout options: Type A (32 units) with a built-up of 4,410 sq ft (65ft by 142ft) and the larger Type B (28 units) with a built-up of 9,573 sq ft (80ft by 200ft). As a testament to this, Google has chosen to set up its first hyperscale data centre in Malaysia at Elmina Business Park. This is made possible by leveraging Sime Darby Property’s over five decades of experience of being the go-to expert in building sustainable communities and integrated business solutions. The developer’s ethos is driven by four key elements: regional connections, integrated solutions, synergistic partnerships and business growth. A NEW DATA CENTRE HUB

FRIDAY JUNE 28, 2024 5 THEEDGE CEO MORNING BRIEF th Klang Valley, Elmina Business Park the centre of the nation’s key logistics rth South Expressway. Connected and, Sea & Air connected to a seaport, the city centre. m60 km KLIA / KLIA 2 m Airport 40 km Port Klang pressway (NSE) r Expressway (GCE) Kuala Selangor Expressway (LATAR) ey Expressway (NKVE) hah Alam Elevated Expressway (DASH) angor y accessible: FROM PREVIOUS PAGE SUSTAINABILITY AT ITS FINEST Boasting 110 acres of generous lake parks, Elmina Business Park is committed to offer businesses a wellness-inspired and ESG-forward environment. Artist’s impression of the 80’ x 200’ Signature Twin Factories. The 110 acres of parkland reserve at Elmina Business Park is the biggest for any industrial park in the country. FRID AY J UNE 28 , 20 2 4 X8 THE EDGE CEO MORNING BRIEF Key Features of The Signature Twin Factories: Ample designated parking spaces within the lot and on the streets 80 ft-wide road reserve to ensure easy manoeuvrability 3-way loading access for easy circulation of goods Front loading with automatic roller shutters 3-in-1 Design with warehouse, oce and concierge space Customisable floor loading capacity of 10kN/m2 - 40kN/m2 kN/m2 CLICK HERE TO LEARN MORE Elmina Business Park has been designed with eco-friendliness and security in mind to ensure that businesses here can thrive successfully and sustainably. Recognising that a healthy and engaged workforce is critical to business performance, Sime Darby Property ensured that the culture of wellness is embedded into every aspect of its development. Elmina Business Park promotes and protects not just the well-being of the people, but also the environment. It is the first-of-its-kind wellness business park in Malaysia. The 110 acres of parkland reserve is the biggest for any industrial park in the country. This provides ample green pockets and central parks for people to unwind and take a respite from the hustle and bustle. Designed to be multifunctional, the factories come with spacious warehouses, together with office and concierge areas, which can also be converted into a reception or a gallery space. Meanwhile, the exterior will leave a lasting impression, featuring majestic façades and architectural designs, accentuated by clean lines and glass panels. These semi-detached factories are predesigned to enable the combining of two adjoining units to create a larger central warehouse space. In line with its Vision to Advancing Real Estate as a Force for Collective Progress, in Harmony with the Planet’s Resources, Sime Darby Property is being intentional with placemaking to safeguard urban biodiversity, promoting inclusivity and reimagining spaces for a sustainable future. In addition to the large parks, other proposed facilities include staff accommodation, a business support centre and coworking spaces. Elmina Business Park also incorporates eco-friendly features such as solar power generation, rainwater harvesting and extensive use of LED lighting. The Signature Collection’s twin factories are now open for priority registration. For enquiries, call (03) 7831 2253 or visit www.simedarbyproperty.com

FRIDAY JUNE 28, 2024 6 THEEDGE CEO MORNING BRIEF HOME KOTA KINABALU (June 27): Petronas, through Malaysia Petroleum Management (MPM), on Thursday signed a small field asset (SFA) production-sharing contract (PSC) with Vestigo Petroleum Sdn Bhd (Vestigo) for a Discovered Resource Opportunity (DRO) cluster, which was marketed under the Malaysia Bid Round Plus (MBR+). Situated off the coast of Sabah, the NBE Cluster which consists of Nosong, Bongawan North and Epidot fields, is a predominantly gas discovery cluster. A comparable field is Samarang, a mature field located 25km south of Nosong that has demonstrated proven production deliverability. This marks the inaugural award of PSCs in Sabah under the MBR+ promotion. To commemorate this historic event, a signing ceremony was held in conjunction with the Sabah Oil and Gas Conference and Exhibition, here, witnessed by Sabah Minister of Finance Datuk Seri Panglima Masidi Manjun. Petronas was represented by MPM senior vice president Datuk Bacho Pilong while Vestigo was represented by its chief executive officer Khairul Azhar Abu Bakar. Datuk Seri Panglima Masidi extended his congratulations to Vestigo on receiving the PSC award and looks forward to the development of the NBE Cluster. “We welcome capable operators like Vestigo to explore, invest, and develop Sabah’s oil and gas resources. At the same time, we are committed to fostering the growth of local oil & gas services and equipment companies in Sabah and encourage collaborations that increase participation of qualified Sabahan companies in the industry,” he said. Datuk Bacho Pilong said, “The award of this PSC signifies a successful outcome of the MBR+ cycle which was introduced in October 2023. MBR+ provides an additional avenue for investors to explore and acquire DRO and Late Life Assets (LLA) available in Malaysia beyond the annual MBR by utilising and assessing information made available through the Petronas myPROdata.” “We continue to collaborate with the Sabah state government in steering a vibrant investment climate and ecosystem, which is essential in supporting Sabah local communities and players to further progress in this industry,” he added. In the coming weeks, Petronas will be signing new PSCs with more MBR+ winning bidders. MPM acts for and on behalf of Petronas in the overall management of Malaysia’s petroleum resources throughout the lifecycle of upstream oil and gas assets. MPM is pursuing deliberate efforts towards achieving low-carbon low-emission operations. Petronas awards NBE Cluster PSC to fuel longterm energy needs KUALA LUMPUR (June 27): S&P Global Ratings on Thursday affirmed Malaysia’s sovereign ratings at A- and a “stable” outlook, citing steady growth and potential modest fiscal improvements. Malaysia is set to benefit from a strong global semiconductor recovery, reinforcing medium-term growth prospects, S&P said in a statement. Political stability, meanwhile, is leading to a more conducive policymaking, allowing gradual stabilisation of government finances, it noted. “The stable outlook reflects our expectations that Malaysia’s steady growth momentum and strong external position, alongside narrowing deficits, will hold over the next two years,” S&P said. Moody’s Investors Service has Malaysia at A3 with a “stable’”outlook while Fitch Ratings last maintained the country’s credit rating at BBB+ with a “stable” outlook in December 2023. All the three agencies’ ratings are investment-grade. This year, the government is targeting to narrow its budget gap as a proportion of economic output to 4.3% from 5% last year. Malaysia has been trying to shrink a long-running fiscal deficit that stretches back to the 1998 Asian Financial Crisis. Most recently, the government has introduced a slew of measures ranging from trimming subsidies to imposing additional taxes in a bid to fix its weakened finances. The key is the withdrawal of subsidies for fuel and other non-essential items widely panned by economists for being wasteful. “We expect Malaysia’s fiscal deficits to narrow on the back of planned subsidy rationalisation measures, the phased implementation of which has begun,” S&P said. “Although the fiscal position remains weak, it is improving with economic recovery on track and a more stable policy environment.” S&P is projecting Malaysia’s economic S&P affirms Malaysia’s sovereign ratings at A-, outlook ‘stable’ growth to recover to 4.3% this year through higher exports and robust private sector investments. That compares to the official projection of 4%-5% growth this year. In the first quarter, gross domestic product grew 4.2% year-on-year. On its part, the government is banking on external demand and higher tourist arrivals to bolster consumer spending and business investments. “Malaysia’s solid external position is a rating strength,” S&P said, drawing comfort from consistent current account surpluses for more than two decades. The agency forecasts current account surplus to stabilise around 2.3% of gross domestic product over the next three years. Further, Malaysia’s institutions have supported “generally effective policymaking for a long time” and the depth of institutional strength mitigates the risk of political instability, S&P noted. The current coalition government led by Datuk Seri Anwar Ibrahim appears to have reached some degree of political stability which has resulted in a “more favourable policymaking environment,” S&P noted. “This has again enabled economic reforms and fiscal consolidation to gain traction.” BY JASON NG theedgemalaysia.com Bernama Sabah Minister of Finance Datuk Seri Panglima Masidi Manjun congratulated Vestigo Petroleum Sdn Bhd for being awarded the productionsharing contract by Petronas. BERNAMA

FRIDAY JUNE 28, 2024 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): The Employees Provident Fund (EPF) had approved nearly RM7 billion in withdrawals from Account 3 (Account Flexible) as of June 10, according to the Ministry of Finance (MOF). In a written parliamentary reply to Datuk Seri Mohmed Puzi Ali (Barisan Nasional-Pekan), the MOF said that 2.93 million members, or 22.6% of total EPF members under the age of 55, had made withdrawals through Account 3 during the period, totalling RM6.98 billion, with an average withdrawal of RM2,382. The EPF also approved applications from 3.45 million members, or 26.6% of total members under the age of 55, to transfer an initial amount from Account 2 (Account Sejahtera) to Account Flexible, involving RM10.86 billion, while RM4.82 billion had also been transferred to Account 1 (Account Retirement). The MOF said that the EPF account restructuring initiatives, which introduced the new Account Flexible for members under 55 on May 11, allowing them to make withdrawals at any time and for any purpose, aim to ensure sustainable retirement financial well-being while balancing members’ current needs. “This initiative is the government’s proactive step to help the people cope with the changing employment landscape and demographics of the population, as well as the life cycle needs of EPF members,” it said. In answering a separate query from Khoo Poay Tiong (Pakatan Harapan-Kota Melaka), the MOF said that the EPF’s investments are guided by its Strategic Asset Allocation (SAA), aimed at optimising long-term investment returns within tolerable risk limits. The SAA is regularly reviewed to ensure alignment with current market conditions, policies, and EPF changes, the MOF said, adding that considerations include the liquidity profile and cash allocation needed for account restructuring impacts. “Based on the current SAA, the EPF allocates investment cash balances in the range of 2% to 6% of total investment assets. The EPF expects that a large part of the withdrawals from account restructuring can be accommodated with existing cash balances and net cash inflows from contributions, maturities, and investment income,” the MOF said. It added that the EPF will maintain a disciplined investment approach and good liquidity management guided by the SAA to ensure that its investment portfolio remains unaffected by account restructuring. EPF approved nearly RM7 bil in Account 3 withdrawals as of June 10 — MOF KUALA LUMPUR (June 27): Malaysia’s central bank said on Thursday it plans to ask conventional and digital banks to provide basic savings accounts and basic current accounts at minimal costs to consumers. The move aims to boost access to essential services, particularly for the “unserved and underserved” segments of the Malaysian population, Bank Negara Malaysia (BNM) said. Among the main challenges for these consumers include the relatively high barriers to open a current or savings account, it noted. “Having a bank deposit account is key to gaining access to financial services,” BNM said. “This basic first step provides a platform for households and enterprises to receive and make payments, save and perform other daily financial transactions.” BNM has issued an exposure draft that sets out the proposed requirements and expectations that financial service providers must meet. The central bank is asking for feedback, including suggestions for specific issues or areas that need further clarification or alternative proposals to be considered. Feedback must be submitted to BNM by July 26. The requirement is expected to cover licensed banks, Islamic banks, development financial institutions, and digital banks. Under the proposed requirement, all banks shall offer eligible consumers — including individuals who are not digitally savvy, reside in areas with poor internet connectivity, or full-time students — one basic savings account with a minimum initial deposit of under RM20, with no service or maintenance fee. Banks should also offer micro and small enterprises basic current accounts with a minimum initial deposit of RM100 with no minimum balance, though a RM10 service fee could be imposed every six months on accounts with an average balance of less than RM1,000. Banks offering conventional basic savings accounts, meanwhile, shall offer a minimum interest rate of at least 0.25% per year regardless of the account balance, according to the draft exposure. BNM plans to have banks provide basic accounts at minimal costs BY JASON NG theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com ZAHID IZZANI/THE EDGE THE EDGE

FRIDAY JUNE 28, 2024 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): Lawyers for the CEO of a highway concessionaire, who was arrested by the Malaysian Anti-Corruption Commission (MACC) earlier this week, have sought explanation from the commission as to why their client was brought to court without prior notice. Farhan Read, who represents the CEO, on Thusday wrote a letter addressed to MACC chief commissioner Tan Sri Azam Baki as well as the investigating officer on the matter. According to the letter sighted by The Edge, Farhan claimed that his client was summoned by the anti-graft body to its headquarters on Monday and that he went voluntarily to assist with the probe into two highway projects. The MACC then applied for and was granted a four-day remand against the CEO from Tuesday to Friday (June 25-28). The remand order was issued by Magistrate Irza Zulaikha Rohanuddin following an application by the MACC at the Magistrate’s Court in Putrajaya on Tuesday. According to Farhan, he was attending to another case at the Magistrate’s Court on Wednesday when he saw his client being brought to court by the MACC. “He was in handcuffs and was accompanied by MACC officers to court,” he said. Farhan said that he was not informed by the MACC that it would bring his client to court. “We asked the officers accompanying my client as to why he was being brought to court but the officer said that we could not speak with our client. “There was no reason given as to why he was brought to court, and we were not informed,” said the lawyer. Farhan noted that he is on record with the MACC as the CEO’s lawyer. Farhan said that this was an infringement of his client’s rights as stated in Article 5 of the Federal Constitution, which states that a person has right of representation. According to Farhan, the magistrate stated that the MACC had initially applied to release the CEO early from the remand. However, during proceedings, the commission pulled the application and opted to keep the CEO remanded till Friday. Additionally, Farhan told The Edge that the MACC is expected to apply for an extension of the remand on Friday. The CEO, along with seven others, had been arrested for alleged bribery in connection with two highway projects worth RM1.67 billion, according to the MACC. On Tuesday, Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) issued a statement saying it was “aware that our personnel have been remanded by MACC to assist in an ongoing investigation relating to a construction case”. “We are committed and are working closely with all relevant authorities to ensure full cooperation in facilitating the investigation. “Prolintas continues to be committed to maintaining the highest levels of integrity and corporate governance,” said the highway concessionaire. Prolintas operates several highways in the Klang Valley including the Guthrie Corridor Expressway, Kemuning-Shah Alam Highway (LKSA), Ampang-Kuala Lumpur Elevated Highway (AKLEH), Kajang Dispersal Link Expressway (SILK), Damansara-Shah Alam Elevated Expressway (DASH) and Sungai Besi-Ulu Kelang Elevated Expressway (SUKE). Lawyers of highway concessionaire CEO seek explanation from MACC KUALA LUMPUR (June 27): The US Department of Justice (DOJ) said that it had reached an agreement, resolving two civil forfeiture cases, with fugitive Low Taek Jho (Jho Low), members of his family, and trust entities Jho Low established. In a statement on its website on Wednesday, the DOJ said the parties had also agreed to cooperate in the transfer to Malaysia of certain other assets in Hong Kong, Switzerland, and Singapore that are linked to 1Malaysia Development Bhd (1MDB) funds. The DOJ said under the agreement, the department will coordinate with foreign partners to facilitate the liquidation and return of these assets to Malaysia. According to the civil forfeiture complaints, from 2009 through 2015, more than US$4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Jho Low, through a criminal conspiracy involving international money laundering and bribery. The DOJ said the agreement resolves the civil forfeiture action against a luxury apartment in Paris, and artwork in Switzerland by artists Andy Warhol and Claude Monet, which Jho Low purchased for approximately US$35 million in total. It said that in addition, the parties had agreed to return to Malaysia real property and cash in bank accounts valued at approximately US$67 million in US recovers Monet painting, Paris apartment from Jho Low Hong Kong, Switzerland, and Singapore. The US will release a total of US$3.5 million to the trust entities to pay for legal fees and costs associated with the properties. Under the agreement, none of these fees may be returned to Jho Low or his family members. Prior to this settlement, the US had returned or assisted in the return to Malaysia of over US$1.4 billion in assets associated with the international money laundering, embezzlement, and bribery scheme. The DOJ said Jho Low separately faces charges in the Eastern District of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB, and for conspiring to violate the Foreign Corrupt Practices Act by allegedly paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the US presidential election in 2012. This agreement does not release any entity or individual from filed or potential criminal charges. The Federal Bureau of Investigation’s (FBI) International Corruption Squads in New York City and Los Angeles, and Internal Revenue Service (IRS) Criminal Investigation are investigating the case. BY SURIN MURUGIAH theedgemalaysia.com BY TIMOTHY ACHARIAM theedgemalaysia.com BLOOMBERG

FRIDAY JUNE 28, 2024 9 THEEDGE CEO MORNING BRIEF

FRIDAY JUNE 28, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): The Malaysian Palm Oil Council (MPOC) flagged the lack of clear guidance and clarity from the European Union (EU) on its upcoming deforestation regulation with just six months left until the compliance deadline. Malaysian exporters have invested “significantly” in financial and technical resources to meet the European Union Deforestation Regulation (EUDR), focusing on geolocation, legal information, and supply chain traceability, MPOC chief executive officer Belvinder Kaur Sron said in a statement on Thursday. “However, many small farmers within the palm oil supply chain are encountering difficulties and are at risk of being excluded,” Belvinder said. “Despite these efforts, the complexity of the palm oil supply chain continues to make the provision of necessary due diligence information a challenge.” Under EUDR, importers must ensure that products entering the bloc are deforestation-free and produced according to relevant local laws. The EUDR, designed to mitigate the environmental impact of imported commodities, has set a compliance deadline of Dec 30, 2024. MPOC flags uncertainties about compliance with EU deforestation regulation as deadline looms KUALA LUMPUR (June 26): Water services operator Pengurusan Air Selangor Sdn Bhd (Air Selangor) is confident it can supply water to data centres without compromising public water supplies, said its acting chief executive officer Abas Abdullah. Abas said Air Selangor has received water supply requests from data centres in locations such as Cyberjaya and Setia Alam. “We have carried out our forecast before these data centres came in and have prepared ourselves to have a (water) reserve margin of 17%-20% (by 2030),” Abas told reporters on Thursday following the launch of Air Selangor’s 2023 sustainability report. “For Air Selangor, we must be ready. We can allocate water to data centres without compromising the water supply to the public,” he added. Air Selangor has taken several initiatives to maintain higher water reserve margins in the future, including building the Langat 2 Water Treatment Plant — which is also part of an interstate raw water transfer scheme, according to the group’s acting director and head of operations, Ainul Azhar Mohd Jemoner. On completion of phase one of the two-phase project, Ainul said Air Selangor achieved a water reserve margin of 15.34% in 2023, up from 12.02% the previous year. Phase two of the project, expected to be completed by 2030, will add another 1,100 million litres per day (MLD) to Air Selangor’s water supply capacity, he said. That, together with pipe replacement initiatives aimed at reducing water loss, and its Labohan Dagang Phase 2 project — expected to be completed in 2029 — will contribute an additional 200 MLD,” Ainul Air Selangor confident it can meet data centres’ water demand without compromising supply to public BY SYAFIQAH SALIM theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com Read also: Air Selangor records revenue of RM2.82 bil in 2023 Indonesia and Malaysia, which together produce over 80% of the edible oil used in everything from lipstick to diesel, have long complained that the measures are discriminatory. “The sheer volume of information involved, which was further compounded by the complexities of the palm oil supply chain,” also complicate efforts to comply with the EUDR requirements, the council noted. MPOC also stressed the need to address EUDR challenges collectively in a webinar attended by close to 500 participants. At the webinar, Kuala Lumpur Kepong Bhd (KL:KLK) chief sustainability officer Ku Kok Peng highlighted the potential risk of smallholder exclusion, the limitation of compliant supply to the EU, and the consequent higher costs. He also raised the urgency for the EU to resolve the uncertainties faced by exporters that need to prepare for EUDR-compliant shipments to the EU by September or October this year. “The current situation may deter businesses from investing in the EU, potentially affecting employment and the economy negatively,” he added. said. Altogether, these efforts should push the reserve margin to 17%-20% by 2030. Abas and Ainul were addressing reporters’ questions about whether the current water supply system can meet the increasing demand from data centres, and how it might affect Air Selangor’s future water reserve margins. Data centres, which house servers and other computing infrastructure, are not only major consumers of power but also significant users of water, primarily for cooling purposes. The demand for data centres has surged due to the growing needs of artificial intelligence. Google is investing RM9.4 billion to house its first data centre and cloud in Malaysia, which will be located in Sime Darby Property Bhd’s Elmina Business Park, while ByteDance is planning to expand its data centre facilities in Johor as part of a U$2.13 billion deal. Telekom Malaysia Bhd has partnered Singtel’s Nxera to jointly develop data centres in Malaysia, with their first project being a ‘sustainable, hyper-connected and AI-ready’ campus in Johor. From 2021 to 2023, data centres accounted for RM114.7 billion in investments, representing 79% of the total RM144.7 billion approved digital investments, according to the Ministry of Investment, Trade and Industry. Air Selangor Acting CEO Abas Abdullah PATRICK GOH/ THE EDGE MPOC chief executive officer Belvinder Kaur Sron FB

FRIDAY JUNE 28, 2024 11 THEEDGE CEO MORNING BRIEF HOME Three Dr Yulinked counters fall following allegations of market rigging, manipulation MARC downgrades YNH’s sukuk to BBIS, with negative outlook BY SYAFIQAH SALIM theedgemalaysia.com BY HEE EN QI theedgemalaysia.com KUALA LUMPUR (June 27): MARC Ratings Bhd has downgraded YNH Property Bhd’s (KL:YNHPROP) Islamic Medium-Term Notes Programme (Sukuk Wakalah) to BBIS with a negative outlook in a move that it says reflects heightening concerns over the group’s business and financial prospects. The downgrade was made as MARC removed the programme from its negative watch, in which it has been placed since Jan 18 due to YNH’s weak financial position, delayed asset disposals and material issues concerning its key shareholder that have compounded the challenges that the group faces to address its weakening credit profile, MARC said in a statement. “Since the negative placement in January, the rating agency notes that YNH has not made any meaningful progress that would have alleviated concerns about its ability to meet its upcoming financial obligations,” said MARC. YNH has an outstanding RM323 million under sukuk programme, of which the first tranche of RM153 million will mature on Feb 28, 2025. It is required to build up 50% of this amount through monthly payments of RM6.1 million into a reserve account from Feb 28, 2024. However, YNH has struggled to meet this commitment, periodically lapsing into technical defaults, underscoring its weak liquidity position, according to MARC. As of end-March, the company had RM13 million in cash and short-term deposits, while its total group borrowings amounted to RM1.2 billion, the rating agency said. “While the visibility of progress billings from few ongoing property developments remains modest at this juncture, the rating agency understands from YNH that sales performance of its Solasta project is improving. “Should this trend continue, coupled with an accelerated pace to conclude its asset disposal plans including the sale of the 5.1-acre land parcel in Desa Sri Hartamas and 163 Retail Park mall in Mont Kiara, YNH would be better placed to improve its financial position. The rating agency will continue to monitor developments in YNH to take appropriate rating action,” MARC added. However, the sale of both its 163 Retail Park and the 5.098-acre freehold land in Desa Sri Hartamas to Sunway Group are facing delays. In a filing with Bursa Malaysia on Thursday, YNH said the conditional period of the sale and purchase agreement for the sale of 163 Retail Park to Sunway Real Estate Investment Trust (Sunway REIT) (KL:SUNREIT) has been extended by three months to Sept 26. The conditional period ended on Thursday (June 26). This is the second extension for the deal. The deadline of YNH’s RM170 million sale of the Desa Sri Hartamas land to Sunway Bhd (KL:SUNWAY) has also been postponed by a year to May 12, 2025, according to the group’s bourse filing announced last month. The delay, which was the fifth time for the deal, was due to more conditions being added to the deal following the discovery of a registered caveat lodged over the property. YNH again came under the spotlight on Wednesday as the Securities Commission Malaysia is suing the group’s largest shareholder, Datuk Dr Yu Kuan Chon, for alleged market rigging and manipulation involving shares of Shangri-La Hotels (M) Bhd (KL:SHANG) in 2018. Following the news, YNH’s shares tumbled 11 sen or 18.2% to 49.5 sen, giving the group a market capitalisation of RM262 million. KUALA LUMPUR (June 27): Three counters linked to prominent investor Datuk Dr Yu Kuan Chon fell during Thursday’s early trade, following the Securities Commission (SC)’s statement on Wednesday that it has sued him for alleged market rigging and manipulation. Property developer YNH Property Bhd (KL:YNHPROP) fell as much as 12.5 sen or 20.7% to 49 sen during Thursday’s early trade. It closed at 49.5 sen, still down 11 sen or 18.2%, valuing the group at RM261.85 million. It was the second most active counter on Bursa Malaysia, with 94.45 million shares changing hands, nearly tripling its 20-day moving average. Industrial mould manufacturer Rapid Synergy Bhd (KL:RAPID) fell as much as nine sen or 10% to 81 sen, with 2.9 million shares exchanging hands, before closing at 84 sen, giving it a market capitalisation of RM89.79 million. Shares of agricultural manufacturer Imaspro Corp Bhd (KL:IMASPRO), which fell four sen or 3.06% earlier in the day to RM1.07, pared some lossYNH Property Bhd 0 50 100 150 200 250 300 350 June 7, 2023 June 27, 2024 0 2 4 6 Vol (mil) RM/sen *49.5 sen RM4.91 *As at market close on June 27, 2024 Source: Bloomberg es to close at RM1.10, after 151,400 shares were traded. Yu is the largest shareholder in YNH Property Bhd, where he is chairman and executive director, with a 32.6% stake. He also holds a 22.8% stake in Rapid Synergy and a 15.7% stake in Imaspro. All three counters experienced rapid selldown in January. Rapid Synergy has tumbled 97% year-to-date, while YNH fell 87.8% and Imaspro lost 68.8%. On Wednesday, the SC alleged that Yu had traded in Shangri-La Hotels (M) Bhd (KL:SHANG) shares between March 1, 2018 and July 24, 2018, in a manner that caused a surge in the traded volume and share price of the hospitality group. The regulator said it is seeking orders to compel Yu to disgorge RM26.57 million, which is three times the gain from the alleged manipulation. It also wants a civil penalty of RM1 million to be imposed on Yu and for him to be barred from managing any public company for five years, and from trading on the stock exchange for the same period.

FRIDAY JUNE 28, 2024 12 THEEDGE CEO MORNING BRIEF HOME MYAirline’s co-founder Allan Goh gets slapped with another lawsuit, this time from over 200 investors BY TARANI PALANI theedgemalaysia.com KUALA LUMPUR (June 27): Datuk Allan Goh Hwan Hua, co-founder of MYAirline Sdn Bhd has been hit with another lawsuit, this time from 213 people who invested about RM70 million in entities purportedly linked to him. Goh, his wife Neow Ean Lee, along with 18 entities allegedly linked to him, have been sued for fraud, negligence and breach of trust, among others. The 18 entities are: i-Serve Technology and Vacations Sdn Bhd, i-Serve Travels & Tours Sdn Bhd, i-Serve Online Mall Sdn Bhd, MM 2217 Plt, Bright Moon Venture Plt, QA Smart Partnership Plt, Global Wealth Elite Plt, QA Elite Partnership Plt, QA Premium Partnership Plt, Alpha International Venture Plt, QA Advance Partnership Plt, Win Capital Holdings Sdn Bhd, Global Prosperous Plt, Win Capital I Plt, New Visionproven Bhd, Advanced Digital Venture Bhd, Trillion Cove Holdings Bhd and MyAirline Sdn Bhd. In court papers seen by The Edge, the investors accused Goh of using “his web of intertwined corporate entities” to create schemes to collect deposits from unsuspecting investors. They claimed that between 2018 and 2021, they were deceived by Goh or his agents to deposit monies in some of these entities on the promise that the deposits would be repaid in full, along with returns of investments. However, to date, they have recovered neither capital nor interest. The plaintiffs, represented by Messrs Jerald Gomez & Associate, also claimed that representations were made by Goh and his agents that even if a particular entity did not generate business revenue, Goh and the i-Serve Group of Companies had agreed that the investors would be given the agreed interest rate, which was termed “guaranteed revenue share”. In the suit filed on Tuesday (June 25) at the Shah Alam High Court, they said Goh had assured them that their deposits were intact even after several companies under the I-Serve Group were raided by the central bank in November 2021. But they claimed Goh told them they needed to sign new agreements if they wanted to preserve or get their deposits back, saying the new agreements were allegedly needed because Bank Negara Malaysia (BNM) had directed those companies to cease all existing agreements with their investors. Last September, Bank Negara Malaysia said it had imposed a RM50 million compound against the i-Serve Group for accepting deposits without a licence. The compound has been paid. In the lawsuit, the plaintiffs are seeking, among others, a court declaration that Goh orchestrated a fraudulent scheme using those entities linked to him. They are also seeking a declaration that some of the agreements entered into between them and the entities are void. Besides damages for fraud and negligence, they are also seeking exemplary and aggravated damages. The matter has been set for case management on July 29. Investors hope to get justice and their money back Some 120 of those investors involved in the lawsuit gathered for a press conference on Thursday (June 27). Many of them related stories of mental anguish over the predicament they suddenly find themselves in. Many have also resorted to borrowing money from others or taking up odd-jobs to scrape by. P Ratnavali Devi, one of the investors, said many of them felt shame for having been duped. “The loss of money is one thing but to lose your mental wellbeing [...],” she sighed. They voiced their hope for justice to prevail and to be able to get their money back. This is not the first suit from investors against Goh involving their investment in his companies. Some 15 investors previously initiated a lawsuit against Goh and four companies under his control over their alleged failure to pay monthly redemption sums and financing returns from their outlay of about RM8 million. Goh had applied to strike out that suit but his bid was dismissed last December. The case is set to go on trial in October. MYAirline abruptly halted its operations on October 12 last year due to “significant financial pressures”. A few days later, Goh, his wife and son were arrested by the police to facilitate an investigation under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. They were later released on bail. Subsequently, MYAirline, after months of trying but unable to secure a new investor, lost its licence to operate as a commercial airline in April this year. Lawyer Datuk Jerald Gomez SAM FONG/THE EDGE

FRIDAY JUNE 28, 2024 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): One-stop food processing and packaging machinery solutions provider EPB Group Bhd, which is set to debut on the ACE Market of Bursa Malaysia on Aug 23, has set its initial public offering (IPO) price at 56 sen, to raise RM62.48 million for the company and its offerors. Its IPO entails a public issuance of 71.57 million new shares and an offer for sale of up to 40 million existing shares. With an issue price of 56 sen per share, it will raise RM62.48 million for the company and its offerors. At the IPO price of 56 sen per share, EPB will have a market capitalisation of RM208.32 million ahead of its debut. The IPO price of 56 sen values the company at about 14.62 times based on its net profit of RM14.26 million for FY2023 and enlarged issued shares capital of 372 million shares. The group’s diluted earnings per share is 3.83 sen. At its prospectus launch on Thursday, the group said RM40.08 million of the proceeds will be raised from the issuance of 71.57 million new shares. The IPO includes an offer for the sale of 40 million existing shares by EPB shareholders to selected investors, as well as Bumiputera investors approved by Ministry of Investment, Trade and Industry (Miti) by way of private placement. Of the RM40.08 million raised from the new share issuance, RM24.6 million will be used for factory expansion, RM10.5 million for repayment of bank borrowings, RM8.48 million for working capital, and the remaining of RM4 million for estimated listing expenses. Looking forward, its managing director Yeoh Chee Min said he is positive about the outlook for the processing machinery business. Yeoh explained that growth in the local food and beverage (F&B) processing machinery industry is driven by several factors. The country’s labour shortage has led to increased adoption of industrial automation, boosting demand for processing machinery. Read the full story ACE Market-bound EPB sets IPO price at 56 sen, to raise RM62.5 mil KUALA LUMPUR (June 27): MIDF Research recommends accepting the privatisation offer of RM11 per share for Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT), while maintaining its ‘buy’ call on Capital A Bhd (KL:CAPITALA), with a target price of RM1.06. In a recent note, the research firm said MAHB is actively pursuing 15 additional foreign carriers to operate in the country within the next two years. “KUL (Kuala Lumpur International Airport) now serves 70 airlines, exceeding its pre-pandemic level of 69 airlines. “Year to date, approximately seven additional foreign airlines have commenced services to KUL. By year end, three more airlines — British Airways, Thai VietJet, and 9 Air — are expected to commence operations,” it added. MIDF said to enhance air travel, MAHB had made substantial investments in initiatives like the Airline X-celeration Programme, which offers landing fee waivers, airport office rental rebates, and marketing support. It also noted that about RM3 million had been allocated for marketing support on Malaysia-China routes alone, adding that the recovery rate of this sector stood at 78% in the first quarter of 2024. Meanwhile, MIDF said passenger traffic in Malaysia continued its upward trajectory, with May 2024 figures reaching an impressive 7.7 million, the second highest for the year following February’s peak. This surge represented a 97% recovery overall, with domestic travel at 95% and international at 99% of the pre-pandemic levels of 2019. The recent public holidays and school vacation period significantly buoyed this growth. Efforts by both local and international airlines to increase seat availability further fuelled the recovery. The international sector, in particular, Accept MAHB offer, buy Capital A amid robust traffic growth, says MIDF has outperformed the domestic arena for seven consecutive months, largely due to the visa-free waiver policy. In May, international traffic was bolstered by AirAsia resuming flights from KUL to Bhubaneswar, India, and China Eastern Airlines initiating flights to Wuhan. Additional new routes include AirAsia’s flights from KUL to Ahmedabad, India, and Juneyao Air’s operations from the Penang International Airport to Pudong, China. Despite the optimistic outlook, MIDF maintained its ‘neutral’ position on passenger traffic growth. It cited the Malaysian Aviation Commission’s (Mavcom) higher-range forecast, which supports its projection of a 2% growth relative to 2019 levels. Risks include delays in full reactivation of AirAsia’s fleet, and potential disruptions to Boeing aircraft deliveries to local carriers, which could temper the optimistic projections. MAHB shares closed 13 sen or 1.4% higher at RM9.73, valuing the airport operator at RM16.2 billion. Capital A was unchanged at 84 sen, translating into a market capitalisation of RM3.61 billion. BY ISABELLE FRANCIS theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com (From left) EPB Group Bhd independent non-ED (non-executive director) Stephen Chua Chee Keong, EPB independent non-ED Ooi Hun Pin, Wyncorp Advisory Sdn Bhd director Moh Jiun Haur, EPB deputy managing director (deputy MD) Liew Meng Hooi, EPB independent non-executive chairman Noor Azman Nordin, EPB MD Yeoh Chee Min, EPB ED Ooi Kim Kew, Malacca Securities MD Lim Chia Wei, and EPB independent non-ED Khor Chai Tian at the IPO prospectus launch on Thursday, June 27, 2024. SHAHRIN YAHYA/THE EDGE

FRIDAY JUNE 28, 2024 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): Voultier Sdn Bhd, a firm controlled by businessmen Datuk Wira Mubarak Hussain Akhtar Husni and Datuk Lai Keng Onn, has completed the acquisition of a 51% stake in financially troubled EA Technique (M) Bhd (KL:EATECH). Bourse filings on Thursday showed that Voultier now owns the majority stake in the marine transportation and offshore storage services group after subscribing for 676.39 million shares through a share issuance exercise, which was part of EA Tech’s regularisation plan to address its Practice Note 17 (PN17) status. Voultier does not intend to undertake a mandatory general offer and is seeking an exemption from the obligation to do so, according to EA Tech. Voultier is 70%-owned by Mubarak, while Lai owns 30%. The duo are on the board of Kinergy Advancement Bhd (KL:KAB). The share issuance, involving up to 795.75 million shares and representing 60% of EA Tech’s enlarged share capital, marks the completion of the group’s regularisation plan. The subscription price of 10 sen per share represented a 71% discount compared to EA Tech’s closing price of 34.5 sen on Thursday. At its current price, EA Tech is valued at RM183.02 million. On completion of the share issuance, Johor Corp becomes the group’s second-largest shareholder with a 21% stake, held via Sindora Bhd and Kulim (Malaysia) Bhd. The bulk of the proceeds raised — amounting to RM79.58 million — will be used to settle the balance due to scheme creditors and finance its working capital. EA Tech fell into PN17 status in 2022 after its shareholders’ equity dropped to RM5.96 million as of Dec 31, 2021, which was less than 25% of its share capital of RM179.76 million. EA Tech is primarily involved in the business of marine transportation and offshore storage of oil and gas, as well as the provision of port marine services. Voultier completes purchase of 51% stake in EA Technique KUALA LUMPUR (June 27): Sapura Energy Bhd’s (KL:SAPNRG) net profit shrank nearly 44% to RM82.13 million for the first quarter ended April 30, 2024 (1QFY2025) from RM146.09 million the year before, no thanks to a RM117.76 million loss resulting from the liquidation of a subsidiary. In addition, the group’s foreign exchange gains came in much lower at RM52.4 million in 1QFY2025, compared with RM217.6 million a year ago. Earnings per share contracted to 0.45 sen from 0.91 sen previously. However, quarterly revenue grew 23.6% to RM1.18 billion from RM951.73 million as a result of higher project progress in its engineering and construction segment. The cash-strapped company did not declare any dividend for the quarter under review. It last paid a dividend of 0.5 sen per share in 2019. Its net profit was in contrast to a net loss of RM728.44 million in the immediate preceding quarter. Revenue increased by 11.1% quarter-to-quarter from RM1.06 billion. Sapura Energy’s order book currently stands at RM7.1 billion, up from RM3 billion previously. Looking ahead, the company remains committed to bidding for projects both in the Malaysian and international markets. “The company is committed to regularising its financial position, with the ultimate goal of declassifying itself as a Practice Note 17 company,” Sapura Energy said in the result release, pointing to its plan to divest a 50% stake in SapuraOMV Upstream Sdn Bhd to TotalEnergies Holdings SAS, along with the High Court’s extension of the convening and restraining orders until March 10, 2025. “Our strategy is to balance our income sources by focusing on both the Malaysian market and international projects. This approach has enabled us to deploy key strategic assets and expertise where it is most needed. It is part of our commitment to safely deliver solutions to clients and ultimately contribute to the provision of affordable energy to communities worldwide,” said Sapura Energy chief executive officer Datuk Mohd Anuar Taib in a statement in conjunction with the quarterly result announcement. Shares of Sapura Energy fell 0.5 sen to 3.5 sen on Thursday, valuing the company at RM643.16 million. Sapura Energy’s 1Q net profit down 44% BY SYAFIQAH SALIM theedgemalaysia.com BY HEE EN QI theedgemalaysia.com More on corporate earnings: Crescendo’s net profit soars to RM289 mil in 1Q from data centre land sales Kim Loong 1Q net profit rises to RM49.51 mil on higher FFB, CPO production NEWS IN BRIEF Further studies on Malay reserve land underway to make Bandar Malaysia an int’l biz hub KUALA LUMPUR (June 27): Further studies on the development strategy for 50 acres (20.23 hectares) of Malay reserve land in Bandar Malaysia are underway, said the Ministry of Finance (MOF). This is to ensure alignment with the government’s aspirations to establish it as an international business hub, according to the ministry in a written answer in Parliament on Wednesday. The MOF was responding to an enquiry from Onn Abu Bakar (Pakatan HarapanBatu Pahat) regarding the development plan for 50 acres of Sungai Besi ‘airport’ land, which has been designated as a Malay reserve. Key principles considered for the 50-acre site include clustered settlements around key facilities, and integrated development consistent with Madani Malaysia’s inclusiveness concept, it said. The government also aims to develop the area into a tourist attraction that showcases Malay culture, and promotes economic empowerment by providing property ownership opportunities for Malays within the city. The Bandar Malaysia project, located on the former Kuala Lumpur Air Base site in Sungai Besi, is projected to have a gross development value of RM140 billion. — Bernama Audit (Amendment) Bill 2024 tabled for first reading KUALA LUMPUR (June 27): The Audit (Amendment) Bill 2024 to amend the Audit Act 1957 (Act 62) was presented for its first reading in the Dewan Rakyat on Thursday. The Bill was tabled by Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, following the end of the oral question-and-answer session. According to a copy on the Parliament portal, the amendments to Act 62 involve the creation of new provisions and amendments to several existing provisions, including Section 5, to expand the powers of the Auditor General to examine, investigate and audit the accounts of any other bodies. This includes companies registered under the Companies Act 2016 (Act 777) that receive financial guarantees from the federal or state government. Azalina said the second and third readings of the Bill are scheduled for the same meeting. — Bernama

FRIDAY JUNE 28, 2024 15 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): Ajinomoto (Malaysia) Bhd (KL:AJI) has declared a first and final dividend of 38.4 sen per share for the financial year ended March 31, 2024 (FY2024). The dividend will be paid on Sept 25, with the ex-date fixed for Aug 29, according to the group’s exchange filing on Thursday. This dividend is significantly higher than the 9.1 sen per share paid for FY2023. It also comes after Ajinomoto paid a special dividend of RM2.12 per share on May 30. The special dividend had been announced in July last year after a land disposal exercise. The group had sold six parcels of land along Jalan Kuchai Lama to Tan Sri David Law Tien Seng, better known as TS Law, for RM408 million. The gain from the land disposal helped Ajinomoto report a 15-fold rise in its net profit for 4QFY2024 to a record RM364.21 million, from RM23.1 million a year earlier. Quarterly revenue declined 3.26% to RM152.76 million, attributed to lower sales volume of Ajinomoto seasoning in both domestic and export markets. For the entire FY2024, net profit increased over 14 times to a record high of RM401.42 million, up from RM27.49 million in FY2023. This growth was primarily fueled by the sizable divestment gain booked in the final financial quarter. Full-year revenue also hit a record high of RM636.45 million, compared with RM603.75 million in the previous year. Ajinomoto’s shares closed down six sen or 0.39% at RM15.24 on Thursday, giving the group a market capitalization of RM926.57 million. Ajinomoto declares higher dividend of 38.4 sen for FY2024 KUALA LUMPUR (June 27): Telekom Malaysia Bhd (KL:TM) said it has executed an agreement with MYTV Broadcasting Sdn Bhd to settle all their disputes related to non-payment for the provision of digital terrestrial television (DTT), broadcasting infrastructure and network facilities. It said in a bourse filing on Thursday that both parties will jointly inform the arbitral tribunal of the settlement of the disputes. However, it has yet to reveal the terms of the settlement agreement. “Further announcement will be made on any material developments in respect of this matter,” it added. In February 2022, MYTV — an infrastructure and network service provider controlled KUALA LUMPUR (June 27): MyEG Services Bhd (KL:MYEG) has announced the activation of its blockchain-based cross-border trade facilitation services after it has secured recognition of certificates from relevant authorities. This service, known as ZTrade services, operates on MyEG’s blockchain platform, Zetrix. It enables all data in these certificates to be available accurately in near real-time, increasing tariff computation and customs clearance efficiency. Exporters using the service will benefit from faster and more convenient clearance processing for trades going into China, said MyEG in the bourse filing on Thursday (June 27). The e-government service provider said it received notification letters on June 27 from East Logistic-Link Co Ltd (EL) on the connectivity deployment with ZTrade services. These are certificates of origin issued by the Ministry of Investment, Trade and Industry of Malaysia and General Administration of Customs of China (GACC) and a recognition of phytosanitary certificates and other product certificates issued by the Ministry of Agriculture and Food Securities of Malaysia and GACC. The activation followed the signing of the joint statement of the Ministry of Finance and GACC on single window cooperation in cross border trade on June 19, 2024. by tycoon Tan Sri Syed Mokhtar Albukhary — filed for arbitration to seek declaratory relief related to a service agreement. These included declaratory relief that TM is not entitled to be paid the amount of RM91.71 million or any amounts claimed by TM under the service agreement and that the amount of RM38 million paid by MYTV to TM under the consultancy agreement be accounted for and deemed as payment under the service agreement. The telco denied all allegations and claims made by MYTV. It also counterclaimed against MYTV for reliefs including RM84.02 million for the outstanding charges and RM15.62 million for late-payment charges due and owed by MYTV to TM under the service agreement as at April 30, 2023. TM previously signed an agreement worth RM916.1 million in 2016 to provide services to MYTV for a period of 15 years. Shares of TM closed near its all-time high at RM6.78 on Thursday, valuing the group at RM26.02 billion. It charted a new all-time high at RM6.81 last week after announcing its joint venture with Singapore Telecommunications Ltd (Singtel)’s indirect subsidiary Nxera My Pte Ltd to develop a data centre in Johor. TM says it has reached settlement with MYTV in two-year-long arbitration dispute MyEG activates block-chain based cross-border trade facilitation services for exporters BY HEE EN QI theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com AJINOMOTO Read the full story

FRIDAY JUNE 28, 2024 16 THEEDGE CEO MORNING BRIEF HOME High Court dismisses Malaysian Bar’s bid to challenge Zahid’s discharge not amounting to acquittal in graft case KUALA LUMPUR (June 27): The High Court on Thursday dismissed ousted Nenggiri assemblyman Mohd Azizi Abu Naim’s application for an interim injunction to stop the Election Commission (EC) from holding a by-election for the seat. Judicial Commissioner Roz Mawar Rozain ruled that the court could not stop the EC from performing its constitutional duty. Roz Mawar, who delivered her decision at 7pm, ordered Mohd Azizi to pay RM7,000 in costs. Senior federal counsel Ahmad Hanir Hambaly, who represented the EC, and Azizi’s lawyer Datuk Rajan Navaratnam confirmed the court’s decision when contacted separately by The Edge. Rajan added that Roz Mawar has fixed August 28 for the inter partes (between both parties) hearing of Mohd Azizi’s challenge. Lawyer Chethan Jethwani appeared for Parti Pribumi Bersatu Malaysia (Bersatu) president Tan Sri Muhyiddin Yassin and its secretary-general Datuk Seri Hamzah Zainuddin. Kelantan state assembly Speaker Datuk Mohd Amar Nik Abdullah had declared the Nenggiri seat vacant last week. Mohd Azizi, in his application, had named Mohd Amar and EC as respondents. The EC, which received notice of the vacancy, is scheduled to hold a meeting on Friday to discuss matters relating to the Nenggiri by-election. Mohd Azizi, who is also member of Parliament for Gua Musang, was sacked from Bersatu after he pledged support for Prime Minister Datuk Seri Anwar Ibrahim. He filed a lawsuit on Monday through lawyer Shankar Govinth in seeking a declaration that the by-election for the Nenggiri seat cannot be conducted by the EC because it is still held by him. He also sought a declaration that his dismissal from his position and Bersatu through a notice dated June 12 was invalid. He also requested for an order that the announcement of the notification letter from Mohd Amar to the EC that the seat is vacant be suspended. Additionally, Mohd Azizi sought a declaration that the letter was invalid and that his dismissal from Bersatu was malicious. According to Mohd Azizi, the amendment to Clause 10 of Bersatu’s constitution, which stipulates that a person’s membership shall be terminated if he supports a political rival, is unconstitutional. Court bins ousted Nenggiri rep’s bid to stop by-election KUALA LUMPUR (June 27): The High Court here has rejected a judicial review application, brought by the Malaysian Bar, to challenge Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s discharge not amounting to acquittal (DNAA) in the Yayasan Akalbudi corruption case. Judge Datuk Amarjeet Singh, in his decision on Thursday, said that the Bar did not meet the requirements for a judicial review, and thus rejected the application. The Bar, among others, sought an order to quash the Attorney General’s Chambers (AGC) decision to seek a DNAA for Zahid. The Bar also sought an order instructing the AG to act in accordance with the law, including prosecuting Zahid again if deemed appropriate, as per Section 254A of the Criminal Procedure Code. It also sought an order compelling the AG to provide information and documentation justifying the decision to apply for a DNAA for Zahid. All of the above were dismissed by Amarjeet. In his decision on Thursday, the judge said that the matter is not subject to a review, as it is not for the court to decide, meaning that the court will not hear the challenge to Zahid’s DNAA. The rejection by Amarjeet was merely for the Bar to seek leave from the court to initiate a judicial review. In this case, the Bar named the AG and the deputy prime minister as the respondents. In his broad grounds which he read in court on Thursday, Amarjeet said that the exercise of the AG’s power under Section 145 (3) of the Federal Constitution is cloaked with the presumption of legality. He further explained that the burden on the Bar as the applicant is high, and compelling grounds are required for a review. In a decision that drew brickbats from many quarters, the prosecution in the deputy prime minister’s criminal breach of trust, corruption, and money-laundering case had informed the court of their intention to discontinue and drop all 47 charges against Zahid, even though his defence had been called. Presiding judge Datuk Collin Lawrence Sequerah handed down a DNAA to the Umno president, as opposed to the defence’s request for a full acquittal, meaning that Zahid can still be charged with the same charges in future. Senior federal counsel Shamsul Bolhassan represented the AGC, while Steven Thiru appeared for the Bar, and Datuk Hisyam Teh Poh Teik represented Zahid. Separately, the Bar had also made an application to refer constitutional questions to the apex court, posing three questions on whether the landmark decision in the case of Asian International Arbitration Centre director Datuk N Sundra Rajoo included the AG’s discretion to discontinue prosecution as well. In the landmark case, the apex court ruled that Sundra had the privilege of immunity from criminal proceedings, and that the AG did not have absolute and unfettered discretion to institute a case. However, Amarjeet said that these questions don’t meet the threshold as set out by the court under Section 84 of the Courts of Judicature Act 1964, and therefore, the questions would not be referred directly to the Federal Court. Amarjeet then ordered the Bar to pay RM10,000 in costs to the AG. BY TIMOTHY ACHARIAM theedgemalaysia.com BY HAFIZ YATIM theedgemalaysia.com ZAHID IZZANI/THEEDGE

FRIDAY JUNE 28, 2024 17 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 27): The police have advised the public against participating in a rally planned at a public car park in front of the Seri Perdana Complex in Putrajaya this Saturday. Kuala Lumpur police chief Datuk Rusdi Mohd Isa said no permission has been granted by the owner of the proposed venue, Putrajaya Corporation, for the event as required under the Peaceful Assembly Act (Act 736). He said strict action would be taken KL top cop warns public against attending rally in Putrajaya this Saturday KUALA LUMPUR (June 27): Human rights non-governmental organisation (NGO) Lawyers for Liberty (LFL) said the larger issue of the constitutionality of Universiti Teknologi Mara (UiTM) being exclusively for the Bumiputera remains unresolved. In a statement on Thursday, LFL director Zaid Malek said this was no small matter. “It is a national shame that Malaysia still maintains racially-exclusive public institutions, 67 years after independence. “Let us be clear that nothing in Article 153 permits the establishment of a racially exclusive university in Malaysia. Article 153 only provides for a reasonable proportion of educational privileges to be reserved for Malays and the natives of Sabah and Sarawak,” he said. Zaid said excluding non-Bumiputeras from enrolling in UITM is unconstitutional, as it breaches the stipulations of the said provision itself, that the legitimate interest of other communities should be considered and that any reservations made for Bumiputeras should be reasonably proportionate with that interest. “It cannot be denied any longer that UiTM’s policy of exclusivity is akin to the apartheid system. “The refusal to consider the legitimate interests of other communities, the resort to empty racial rhetoric, and references to ‘reports’ made by groups with obvious vested interest only serve to aggravate the racial nature of UiTM’s admission policy,” he said. Zaid said there is no justification available for the government to maintain UiTM as exclusively for Bumiputeras. He said it is a breach of the Federal Constitution, and the continued refusal to acknowledge this is a catastrophic failure of the government to uphold the Constitution. Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir on Wednesday told Parliament that Universiti Malaya Issue of constitutionality of UiTM being exclusively for Bumiputeras remains unresolved, say lawyers BY SURIN MURUGIAH theedgemalaysia.com B e r n a m a (UM) is expected to offer a cardiothoracic specialist training course this October. Replying to Ramkarpal Singh’s question on whether the government plans to allow non-Bumiputeras to study at UiTM by amending the UiTM Act 1976, Zambry emphasised the importance of maintaining UiTM’s policy to cater specifically to the Malays, Bumiputeras, Orang Asli, and the natives of Sabah and Sarawak. He said that this effort is aimed at fulfilling the government’s goal of narrowing racial disparities, particularly on socio-economic aspects. He added that findings from the Ministry of Economy’s Bumiputera Economic Congress 2024 report indicated economic disparities among Bumiputeras in terms of average monthly income, corporate equity ownership, poverty rates, skilled labour production and professional qualifications. “The establishment of UiTM was a response to the shortage of trained professionals, particularly among the Bumiputera, who were predominantly in unskilled job sectors in the past. “With UiTM’s establishment, more Bumiputera students get opportunities to pursue higher education and receive training, preparing them to take on various roles in both the public and industrial sectors. This initiative is crucial for enhancing their quality of life and transforming their futures,” he said. against those who attend the event. According to Rusdi, the police had received a letter of notification from the organiser last June 14 to hold the rally, but permission has not granted by the owner of the venue. “The landowner (Putrajaya Corporation) does not allow the assembly there and we advise the organiser, known as Demi Negara, not to continue with the assembly,” he told a media conference at the Brickfields District Police Headquarters, here Thursday. Rusdi said the police had come across a viral video on the TikTok app inviting the public to join the rally. The police have received 85 reports on the issue and have opened an investigation paper under Section 505 (b) of the Penal Code and Section 233 of the Communications and Multimedia Act 1998. BERNAMA

FRIDAY JUNE 28, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (June 27): The pandemic savings cushions that helped Americans weather high prices in recent years have worn through, contributing to a loss of consumer firepower that’s rippling through the economy. Delinquencies are rising. Executives are flagging caution among shoppers in recent earnings calls, and retail sales barely increased in May after falling the month prior. Economists forecast solid inflation-adjusted consumer spending in data out Friday, helped by lower gasoline prices, but that would follow an outright decline in April. The resilience of American consumers — and their willingness to spend despite rising prices and high borrowing costs — has been a pillar of the unwavering strength of the US economy in recent years. A healthy labour market has played a key role, but so has the roughly US$2 trillion (RM9.4 trillion) in excess savings Americans accumulated during the Covid-19 pandemic. Those excess savings have been fully depleted as of March, according to the Federal Reserve Bank of San Francisco, heightening concerns about the durability of consumer spending. “That excess cushion that households were able to fall back on in the immediate aftermath of the pandemic is no longer available for the most part,” said Stephen Stanley, chief US economist at Santander US Capital Markets LLC. “And so their fortunes are basically tied to their current income, which is inevitably a function of the labour market.” Employers added 272,000 jobs in May, surpassing all economists’ forecasts, and layoffs are low. But the pace of hiring has cooled, and the unemployment rate has begun to edge higher. For now, that resilient labour market is keeping consumers afloat and giving the Fed the space to keep interest rates high to tame inflation, and economists say household balance sheets overall are healthy. But policymakers, including Fed governor Lisa Cook earlier this week, acknowledge the growing financial strain in some pockets of the economy. “The pullback in consumption is all a part of the Fed’s plan,” said Dana Peterson, chief economist at the Conference Board. “But it’s difficult to calibrate that and there are concerns that maybe consumer spending shrinks by too much.” Read the full story Read also: US new-home sales slump to slowest pace since November Americans’ pandemic savings are gone — and the economy is bracing for impact (June 27): Recurring applications for US jobless benefits rose to the highest level since the end of 2021, a warning sign suggesting that it’s taking longer for unemployed people to find a job. Continuing claims, a proxy for the number of people receiving benefits, increased to 1.84 million in the week ended June 15, according to Labor Department data released Thursday. Meanwhile, first-time claims ticked down to 233,000 last week, a period that included the Juneteenth holiday. Hiring has slowed significantly from the pandemic-recovery era of widespread labour shortages and the unemployment rate ticked up last month to 4% for the first time in two years. Economists and Federal Reserve policymakers are watching the claims data for signs of whether the labour market — which so far has been surprisingly resilient — is continuing to soften. Goldman Sachs chief economist Jan Hatzius recently said the labour market is reaching a potential “inflection point,” where a further material softening in demand for workers could lead to a rise in joblessness. “The increase in continuing claims for jobless benefits will likely add upward pressure to the unemployment rate. Even as initial claims inched down for a second straight week, we think it matters more that an increasing number of workers are US recurring jobless claims rise to highest since end of 2021 languishing,” said Bloomberg economist Stuart Paul. Weekly claims data tend to be volatile, even more so around holidays and school breaks. The four-week moving average, which smooths short-term fluctuations, increased to 236,000, the highest since September. Initial claims before adjustment for seasonal influences decreased by 3,570 to about 224,400. Minnesota, Texas and Pennsylvania saw the highest declines. New Jersey had a sizable gain in claims. In the 20 years preceding the Covid-19 pandemic, weekly initial applications averaged about 345,000, and continuing claims roughly 2.9 million. Separate data Thursday showed that orders placed with US factories for business equipment unexpectedly declined in May, indicating firms remain cautious about investment amid higher-for-longer borrowing costs and softer demand. BY CHARLES AYITEY Bloomberg BY AMARA OMEOKWE & LAURA CURTIS Bloomberg

FRIDAY JUNE 28, 2024 19 THEEDGE CEO MORNING BRIEF WORLD China’s finance elite face US$400,000 pay cap, bonus clawbacks China’s industrial profits growth slows sharply in May amid patchy recovery BY QIAOYI LI & RYAN WOO Reuters BEIJING (June 27): China’s industrial profits rose at a sharply slower pace in May, official data showed on Thursday, underlining the struggles faced by the world’s second-largest economy as weak domestic demand crimps overall growth. Earnings rose 0.7% year-on-year last month after a 4% increase in April, while gains over the first five months also eased to 3.4% from 4.3% in the January-April period, according to National Bureau of Statistics (NBS) data. The closely watched gauge of business conditions follows a flurry of largely downbeat economic indicators in May. While exports were strong, China’s vast property sector has failed to respond to a “historic” rescue package announced last month, weighing on other sectors from makers of construction materials to household goods, and denting overall consumer confidence. “Effective domestic demand remains insufficient ... and the foundation for recovery of industrial profits” isn’t solid as yet, NBS statistician Yu Weining said in an accompanying statement. Yu attributed the slower growth to “short-term factors including a decline in investment proceeds growth”. The automobile industry, a major contributor to consumer discretionary growth, had a profit margin of 4.6% in the first four months, underperforming an average of 5% in the overall factory sector, data from the China Passenger Car Association showed earlier in June. The automakers rely on exports and upscale models for most of their profits amid intense competition at home, and many of them have seen a drastic decline in earnings, the association said. “The slowdown in profit growth is mainly due to the weak recovery in market demand relative to supply, as the overall prices of industrial products are still in decline, while the production and operating costs have increased slightly,” said Zhou Maohua, a macroeconomic researcher at China Everbright Bank. Heated competition among some industrial firms led to prices being slashed and hurt overall industrial profit growth, he said. (June 27): The era of big paychecks for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign. The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and in some cases return pay from previous years to comply with a pre-tax cap of 2.9 million yuan (US$400,000 or RM1.8 million), according to people familiar with the matter. China Merchants Group, China Everbright Group and Citic Group Corp are among state entities that have conveyed the guidance to employees at some of their units in recent weeks, said the people, asking not to be identified discussing a private matter. Some mutual fund managers are also being pressured to return non-compliant pay earned in previous years, the people said. Vilified by Beijing as “hedonists” over their lavish lifestyles, top-earning finance workers including investment bankers and fund managers have been among the hardest hit by Xi’s push for a more equal distribution of wealth. The US$66 trillion financial industry has fallen under tighter Communist Party control, with banks and brokerages slashing pay and other perks. Several Chinese mutual fund managers proposed capping staff salaries at about three million yuan, people familiar with the matter said in April. It wasn’t clear how chants Group and Everbright Group didn’t respond to requests for comment. The move comes as China recently started a new round of anti-graft inspections of some of its largest state lenders, the central bank and key regulators, the first broad probe since the one in 2021 that sent shockwaves through the industry. At least 130 financial officials and executives were investigated or punished in 2023 alone, according to Bloomberg calculations based on official announcements. Authorities have put an increasing focus on corruption among cadres and corporate executives, at a time when they are trying to stabilise the world’s second largest economy and prevent systemic financial risks. The proposed caps mark a drastic shift from the era where companies doled out big pay checks to lure top talent. President Xi will convene senior officials from July 15 to 18 for a delayed conclave that’s expected to set long-term policy on a wide range of economic and political issues, the official Xinhua News Agency reported after the Politburo wrapped up a meeting on Thursday. That meeting emphasised the party’s leadership should be at the centre of any reform, and called for the proper handling of relationships between economy and society, government and market, development and security. many financial entities will be subject to the the current guidance, the people added. At Citic Securities Co, a unit of Citic Group, all senior executives on its management committee earned well over three million yuan last year, with chairman Zhang Youjun making five million yuan, according to its annual report. The majority of their pay was from deferred bonuses. Representatives of Citic Group, MerRead also: China hopes for EV tariff deal with EU that suits both sides BLOOMBERG Bloomberg

FRIDAY JUNE 28, 2024 20 THEEDGE CEO MORNING BRIEF WORLD (June 27): Japan’s persistent inflation appears to have convinced a growing number of households to reconsider a decades-long tendency to keep the bulk of their assets in cash, central bank data indicate. The share of stocks and investment trusts in ¥2,199 trillion (US$13.7 trillion or RM64.6 trillion) worth of household assets rose to 19.7% at the end of March, the highest on record, according to Bloomberg calculations based on the Bank of Japan’s quarterly flow of funds data released Thursday. While the boost was mainly led by an increase in asset prices, a rise in trading accounted for about a quarter of the 31.5% jump in investment trusts. The assets in stocks and investment trusts both hit a record high totalling ¥432.5 trillion. Households have coped with a surge in inflation over the past two years, a significant shift after a prolonged period of deflaJapan inflation spurs shift to record household assets in stocks SYDNEY (June 27): A possible revival in IPOs in Hong Kong after a pickup in Chinese regulatory approvals, and a string of mega deals in India are expected to make Asia a bright spot for equity deals in the second half of this year, bankers and analysts said. Despite the extended downturn in Asia initial public offerings (IPOs), India’s share in Asia equity capital market (ECM) deals is at record high now, and the surge in deals is expected to last for the foreseeable future, they added. India’s total ECM deals jumped 137% in the first half of this year from the same period of last year, with US$28.5 billion (RM134.5 billion) raised, according to LSEG data. IPOs accounted for US$4.25 billion of that, up 89.3% on last year’s first half. Hyundai India’s US$2.5 billion to US$3 billion IPO due later in 2024 is set to be the South Asian country’s largest ever new share sale, and it would also be one of the biggest IPOs globally this year. In comparison, elsewhere in Asia, mainland Chinese ECM deals dropped nearly 70% to be worth US$25.5 billion and IPOs were off 83.1% to US$5.3 billion, the Asia to emerge as equity deals hot spot as India activity surges BY SCOTT MURDOCH Bloomberg BY TORU FUJIOKA Bloomberg worst first half performance in 11 years. The value of IPOs in Hong Kong fell from US$2.12 billion in the first half of 2023 to US$1.46 billion, the LSEG data showed. “As investors get to grips with India’s growth outlook and the growth adjusted valuations, helped further by the monetary easing environment, it will spur foreign investors to come back,” said Citigroup Asia ECM origination head Udhay Furtado. “That pivot to India growth is a staggered rotation. That’s why it’s not been a flood. I think you’ll see that change with the names that are coming to market in the next 18 months as they are going to be globally impactful.” While Hong Kong’s IPO market remains at a low, the Hang Seng’s almost 9% rise in the past three months is seen as a positive to encourage more public market debuts in the coming months. “While global investors remain cautious towards Hong Kong and China there is improved sentiment on the back of ongoing policy support and strong corporate earnings,” said Sunil Dhuphelia, JPMorgan’s co-head of Asia ECM, ex-Japan. “This has led to global investors reducing underweight positions in the past couple of months,” he said, referring to the two markets. The China Securities Regulatory Commission (CSRC) has approved applications from 76 IPO hopefuls so far this year to list offshore, compared to 80 for all of 2023, according to the regulator’s website. tion accompanied by rock bottom interest rates. With the cost of living generally stable or edging lower, individuals tended to keep their financial assets in savings or cash. While the ratio of cash and deposits is still a big chunk of total assets, it slipped to 50.9%, the lowest level since December 2007, according to the BOJ data. BLOOMBERG

FRIDAY JUNE 28, 2024 21 THEEDGE CEO MORNING BRIEF WORLD (June 27): Amazon.com Inc has reached a US$2 trillion (RM9.44 trillion) market valuation for the first time ever as an artificial intelligence (AI)-fuelled rally pushed the tech giant deeper into record territory. Shares rose 3.9% on Wednesday to close at US$193.61, pushing the market value to more than US$2 trillion. The company is now a member of an elite club of a handful of peers that have surpassed the key market capitalisation. Alphabet Inc passed the US$2 trillion threshold in late April, while rallies have pushed market values of Nvidia Corp, Microsoft Corp and Apple Inc to more than US$3 trillion each. Amazon shares have whipsawed since the company’s first-quarter earnings, when the cloud unit posted the strongest sales growth in a year, helping to power the stock back above the all-time high set in April. The stock rallied in June, recovering losses from the end of May to gain 27% so far this year. Shares in the megacap technology company have gotten a lift over the past year as the company cut costs and restructured its business to better take advantage of the AI frenzy. In addition, its key Amazon Web Services business has shown signs of re-accelerating growth, a major point of optimism for investors. “Part of the good stock performance over the last six to nine months for Amazon has been related to the fact that it was oversold” at the end of 2022, said Dan Romanoff, an analyst at Morningstar Investment Service. Amazon hits US$2 tril in value as AI frenzy fuels rally (June 27): SpaceX will sell insider shares at US$112 (RM528.53) apiece in a tender offer, a higher-than-expected price that boosts the value of Elon Musk’s space and satellite company closer to US$210 billion, according to people familiar with the matter. The company was last valued at US$180 billion in a transaction in December, Bloomberg News reported. The world’s second-most valuable start-up decided to price its current tender offer — a transaction that enables employees and insiders like investors to sell shares — at higher than the US$200 billion valuation that was discussed last month, due to significant investor demand, the people said, who declined to be identified as they were not authorised to speak publicly. The new valuation is a record for an American private company, but is still lower than the US$268 billion valuation of ByteDance Ltd, the parent of social video phenom TikTok. Already, SpaceX is on a par with some of the world’s largest, publicly traded companies by market capitalisation. Terms aren’t finalised, and the size of the tender offer could change depending on interest from both insider sellers and buyers. Representatives of SpaceX, formally known as Space Exploration Technologies Corp, didn’t immediately respond to requests for comment. (June 27): Amazon.com Inc plans to launch an online storefront for low-priced apparel and home goods, the company’s biggest move to date to counter the rise of discount upstarts like Temu and Shein. The Seattle-based company’s plans, described in slides posted to websites for third-party Chinese sellers, show Amazon shipping goods directly to customers from China. Amazon, which has sought to hold SpaceX tender offer said to value company at record US$210 bil Amazon plans discount web store in effort to counter China’s Temu, Shein BY KATIE ROOF & ERIC JOHNSON Bloomberg BY MATT DAY & JACOB GU Bloomberg BY CARMEN REINICKE Bloomberg its ground with promises of speedy shipping, previously encouraged Chinese merchants to use logistics services that concentrate merchandise at US-based warehouses. The new mall will appear in its own section of Amazon’s website, the slides say. For now, it is open only to invited sellers. “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” Amazon spokesperson Maria Boschetti said in response to questions about the programme, which was reported earlier by The Information. Among the documents is a screenshot of an apparent invitation from Amazon for a July 5 launch event in Yiwu, a famous manufacturing and export hub in China’s eastern Zhejiang province. Read the full story BLOOMBERG

FRIDAY JUNE 28, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (June 27): Chinese developer Sino-Ocean Group Holding Ltd has received a winding-up petition in a Hong Kong court, according to the city’s judiciary website. The case was filed by The Bank of New York Mellon, London Branch, and the next hearing date is set for Sept 11, according to the website. Sino-Ocean is among a select group of defaulters with Chinese state-owned companies as major shareholders, providing a level of confidence to investors in the past. China Life Insurance Co Ltd owns 29.59% of the builder, according to its latest annual report. The developer has several hundred projects in China, but the country’s property slump continues to weigh on sales. For the first five months of the year, contracted sales tumbled 67%, compared with the year-earlier period. Once considered one of the stronger names among China’s debt-laden developers, Sino-Ocean became a defaulter in September, when it suspended payment on all of its offshore borrowings. The builder said earlier this week that it hasn’t raised enough funds for seven yuan-bond payments initially due June 28, with a 30 trading-day grace period, according to an exchange filing dated June 26. Sino-Ocean has made little progress addressing its offshore debt obligations. In January, it told a key group of its dollar bond creditors that it would prioritise repaying its local debt, Bloomberg News reported. Onshore, the builder sought earlier this year to exchange two yuan bonds into new ones to extend payment by as much as 30 months, Bloomberg reported. Builder SinoOcean Group gets wind-up petition in Hong Kong MANILA (June 27): The Philippine central bank kept its policy rate steady on Thursday, for the sixth straight meeting, with its next move likely to be a rate cut as a government order to cut rice tariffs helps cool inflationary pressures. The Bangko Sentral ng Pilipinas (BSP) kept the target reverse repurchase rate steady at 6.50%, and said it was on track to deliver its first 25-basis-point rate cut since November 2020 at its next meeting in August. BSP governor Eli Remolona said the monetary board expected price pressures to ease further in the second half when rice import duty is slashed to 15% from 35%. The tariff cuts, to run through 2028, will be implemented next month. “If sustained, an improvement in inflation outlook would allow more scope to consider a less restrictive monetary policy stance,” Remolona told a press conference. A rate cut in August, which Remolona said could be followed by another quarter-point rate cut in the fourth quarter, would likely put the BSP ahead of major central banks including the Federal Reserve which is expected to deliver its first rate cut later this year. “Cutting ahead of the Fed is still a tricky endeavour that requires precision and luck,” HSBC said in a note. It has pencilled in a first BSP rate cut in the fourth quarter. “Timing will be key to ensure that the rate cut wouldn’t lead to too much volatility in the peso,” it added. Philippine central bank keeps rates on hold, next move likely a cut The peso, which rose modestly before the decision, was steady after the central bank announcement. Following a review of medium-term economic targets, Budget Secretary Amenah Pangandaman said on Thursday the government has slightly revised its foreign exchange rate assumption to 56 to 58 pesos to the dollar for this year from 55 to 57 previously. While annual inflation has quickened for a fourth straight month in May to 3.9% from 3.8% the previous month, the fivemonth inflation average of 3.5% was well inside the central bank’s 2.0%-4.0% target range. Remolona said the balance of risks to inflation has “shifted to the downside” for this year and next but upside pressures from higher rice, transport and electricity prices remain. The BSP lowered its baseline inflation forecast for this year to 3.3% from 3.5% previously, as well as its projection for next year to 3.1% from 3.3%, which should bode well for the Philippines’ consumption-driven economy. Pangandaman told a press conference the government was keeping its GDP growth target of 6.0%-7.0% for this year and 6.5%-7.5% goal for next year. BY NEIL JEROME MORALES & MIKHAIL FLORES Reuters Bloomberg REUTERS BLOOMBERG

FRIDAY JUNE 28, 2024 23 THEEDGE CEO MORNING BRIEF WORLD UK human rights group launches campaign to stop Shein’s potential London IPO EU should delay deforestation regulation, says senior lawmaker BY EWA KRUKOWSKA Bloomberg (June 27): The European Union (EU) should postpone a regulation to tackle deforestation beyond its borders and use the time for a revision that would reduce the bureaucratic burden, according to senior European Parliament member Peter Liese. The call by Liese, spokesman on environment for the European People’s Party, the biggest group in parliament, comes amid concerns by developing countries that the Deforestation Regulation creates red tape and penalises producers. The US last month joined the chorus of critics, urging the EU to delay the law. The regulation, known as EUDR, aims to crack down on the destruction of forests resulting from the production of commodities like rubber, beef, cocoa and timber. The rules, which kick in at the end of the year, require importers to provide documentation showing that such products aren’t linked to deforestation. While the EU is right to pursue the goal, the way it’s implemented must change, according to Liese. “We must do something about deforestation worldwide and take our responsibility seriously,” Liese said in a The European Union Deforestation Regulation (EUDR) require importers to provide documentation showing that products such as rubber, beef, cocoa and timber are not linked to deforestation. Every coffee bean, carcass of beef and log of wood — along with such things as chocolate, tyres and books — will need to be traced to the exact locations they came from, or the EU will levy hefty penalties. BLOOMBERG BENGALURU/LONDON (June 27): UK-based human rights group Stop Uyghur Genocide has launched a legal campaign to block Shein’s potential London listing over concerns about its labour practices, a law firm representing the campaign group said on Wednesday. Human rights law firm Leigh Day had written to the UK’s Financial Conduct Authority (FCA) to urge the regulator to refuse any attempt by Shein to list on the London Stock Exchange (LSE), it said. “Shein has a zero-tolerance policy for forced labour, and we are committed to respecting human rights. We take visibility across our entire supply chain seriously, and we require our contract manufacturers to only source cotton from approved regions,” Shein said in a statement. The FCA declined to comment. On Tuesday, Amnesty International UK said Shein’s potential London initial public offering (IPO) would be a “badge of shame” for the LSE, because of the fast-fashion firm’s “questionable” labour and human rights standards. Shein confidentially filed papers with Britain’s market regulator in June, two sources told Reuters on Monday, kicking off the process for a potential London listing later this year. The company has previously said it was investing in strengthening governance and compliance across its supply chain. The FCA does not have investigation or enforcement powers related to alleged breaches of legislation not within its remit, such as the Modern Slavery Act or tax legislation. BY YADARISA SHABONG, SINEAD CRUISE & HUW JONES Reuters statement on Thursday. “However, the regulation has been turned into a bureaucratic monster.” In its current form, the EUDR is threatening far-reaching consequences for more than US$110 billion (RM517.97 billion) of trade annually, economies across six continents and suppliers struggling to get to grips with the reality of Europe’s drive to be greener. Every coffee bean, carcass of beef and log of wood — along with such things as chocolate, tyres and books — will need to be traced to the exact locations they came from, or the EU will levy hefty penalties. Many small farmers around the world and even small forest owners in the EU cannot work with the existing provisions of the law, according to Liese. He said that after many discussions that he held with the European Commission and other political groups in parliament, he is optimistic that the EU regulatory arm will propose a delay and the bloc’s assembly will endorse it. “We can adopt the postponement in the short term making use of the urgent procedure so that all sides have time to breathe and then calmly discuss changes to the text that mean less bureaucracy but still protection against deforestation,” Liese said.

FRIDAY JUNE 28, 2024 24 THEEDGE CEO MORNING BRIEF WORLD (June 27): An overwhelming majority of participants in a Thai government survey have backed the Southeast Asian nation’s plan to reclassify cannabis as a narcotics to prohibit its recreational use. At least 80% of the 111,201 respondents supported a draft plan to once again label marijuana as a “category five” from next year, according to Health Minister Somsak Thepsutin. The Food and Drug Administration gathered public feedback to the draft regulation between June 11 and 25. Thailand, which became the first country in Asia to decriminalise use of cannabis two years ago, took a policy U-turn earlier this year with Prime Minister Srettha Thavisin ordering steps to limit its use for medical and health purposes. The move followed concerns about the social and health impacts, especially on children and youth, from a mushrooming of weed dispensaries across the country. The use of cannabis for recreational purposes has been found to damage brain development and lead to depression and suicide, Somsak said earlier this month. About 40% of young Thais, who have heroin addictions, originally used cannabis, according to him. Most Thais back plan to label cannabis as narcotics again (June 27): Thailand has wrapped up a complex process of selecting its new 200-member Senate, which will be less powerful than the outgoing upper house, with some former military and police officers and academics emerging as winners. Former army general Kriangkrai Srirak and ex-provincial governors Weerasak Wichit Saengsri and Thawatch Suraban and trade union leader Chinchote Saengsang won Senate seats, according to provisional results released by the Election Commission on Thursday. The agency is due to unveil the official list of winners on July 2. While business leaders including Bangkok-listed Srinanaporn Marketing Pcl’s senior executive Wichian Chaisathaporn and Thaiasia Goldensea Resort owner Rojana Permpool emerged successful, former prime minister Somchai Wongsawat was eliminated in the final round. Somchai is the brother-inlaw of Thaksin Shinawatra, himself a former premier and someone seen as the de facto leader of the now ruling Pheu Thai Party. The first Senate race since a military coup in 2014 saw more than 48,000 candidates vying for a seat in the upper chamber of the Thai Parliament. In its new form, the house would no longer have the power to elect a prime minister, but will broadly retain its other roles, including vetting new laws and appointments to key posts such as the charter court, anti-graft agency and the poll panel. The make-up of the new Senate will determine if the conservative establishment loosens its grip on one of the most important political institutions in Thailand. The new batch of senators — who will have a five-year term — represent one of the pre-determined 20 civil and professional categories, ranging from farmers to lawyers, women and ethnic minorities. They went through a so-called “self-selection” Former generals, academics emerge winners in Thai Senate race BY ANUCHIT NGUYEN Bloomberg BY PATHOM SANGWONGWANICH Bloomberg process, with qualified applicants voting among themselves — for each other within their group and across the 20 groups — at different levels from local to provincial and national. While the Senate race banned political parties from playing any direct role, there were allegations of attempts to manipulate the results. The Election Commission has said it is gathering facts related to illegal activities of Senate candidates, and reserves the right to take action against them. The poll agency has also a reserve-list of 100 candidates — based on the votes they received — who will be eligible to become senators in the event of anyone getting disqualified. The upper house chamber was in the spotlight for its controversial role in Thailand’s 2023 general election, when it blocked the prime ministerial candidate of the winning reformist party from assuming power. It used an article in the 2017 military-backed Constitution to do so, and later helped install Srettha Thavisin from the runner-up Pheu Thai Party as the prime minister. The new Senate is expected to play a crucial role in the current government’s planned amendment to the military-backed Constitution that requires support from at least a third of senators to pass. Nearly all attempts to do so after the coup have failed due to Senate votes, despite the proposals clearing the elected lower house. Under the new rules, cannabis buds will be categorised as a narcotics while the use of various other parts of the plant, including roots and leaves, will remain legal. The government will review the public feedback before sending the draft regulation for the approval of the Narcotics Control Board, Somsak said Wednesday. Cannabis advocacy groups and businesses have voiced their opposition to the policy volte-face, staging rallies and threatening a legal challenge against the premier. “Business operators don’t have an issue with” the new rules, Somsak said. “It’s those wanting recreational use that have a problem.” Former prime minister Prayuth ChanOcha’s administration decriminalised cannabis in 2022 to free up the plant for medicinal use and as a cash crop. Almost 8,000 dispensaries and a large number of consumer-agro firms have cropped up across Thailand, selling everything from cannabis buds to oil extracts and weed-infused candy to baked goods. Under current decriminalisation laws, cannabis products must not contain more than 0.2% tetrahydrocannabinol — the psychoactive compound that provides a “high” sensation — to be considered legal. Thai Health Minister Somsak Thepsutin said at least 80% of the 111,201 respondents supported a draft plan to once again label marijuana as a 'category five' from next year. BLOOMBERG BLOOMBERG

FRIDAY JUNE 28, 2024 25 THEEDGE CEO MORNING BRIEF WORLD TAIPEI (June 27): Taiwan’s government raised its travel warning for China on Thursday, telling its citizens not to go unless absolutely necessary, following a threat from Beijing last week to execute those deemed “diehard” Taiwan independence supporters. Liang Wen-chieh, spokesperson for Taiwan’s Mainland Affairs Council, told reporters the raised travel warning also applied to the Chinese-run cities of Hong Kong and Macau. China, which views democratically governed Taiwan as its own territory, has made no secret of its dislike of President Lai Ching-te, whom it views as a “separatist”, and staged two days of war games after he took office last month. Last week, announcing new legal guidelines, China threatened to execute Taiwan independence separatists in extreme cases, a further ramping up of tensions that drew condemnation from Lai and his government, as well as the US. Liang, making the announcement at a regular news conference in Taipei, said those guidelines represented a serious threat to the safety of Taiwanese visiting China, in addition to other measures China has been taking to strengthen its national security laws Read the full story Taiwan warns against travel to China after execution threat BEIJING (June 27): China’s Communist Party on Thursday expelled former defence minister Li Shangfu and his predecessor Wei Fenghe for “serious violations of discipline”, a euphemism for corruption, state news agency Xinhua reported. Li was suspected of receiving “huge sums of money” in bribes as well as bribing others, and an investigation found he “did not fulfill political responsibilities” and “sought personnel benefits for himself and others”, the report said, citing the Communist Party’s Central Committee which ordered the investigation. “As a senior leading cadre of the party and the army, Li Shangfu betrayed his original mission ... betrayed the trust of the Party Central Committee and Central Military Commission... and caused great damage to the party cause and national defence,” the report said. Reuters exclusively reported last year that Li was under investigation for suspected corruption in military procurement. He was mysteriously ousted as defence minister without explanation last October, after disappearing for two months. This is the first time China has explicitly confirmed that Li was under investigation, as well as details of the nature of his crimes. China’s military has undergone a sweeping anti-corruption purge since last year, with eleven PLA generals and a handful of aerospace defence industry executives removed from the national legislative body to date. Wei Fenghe, Li’s predecessor, had disappeared from public view since he was replaced last March during a planned cabinet reshuffle. Wei was head of the strategic People’s Liberation Army (PLA) Rocket Force from 2015-17. President Xi Jinping, also the military’s commander-in-chief, appointed a new head and political commissar of the Rocket Force last July, in a major shake-up of the unit that oversees China’s conventional and nuclear missiles. An investigation launched into Wei last September found that he had accepted “a huge amount of money and valuables” in bribes and “helped others gain improper benefits in personnel arrangements”, Xinhua reported, adding that his actions were “extremely serious in nature, with a highly detrimental impact and tremendous harm”. Both officials were also found to have other unspecified violations, the reports said without elaborating. The decisions to strip Li and Wei of their party membership were approved by the seven-member Politburo, the Communist Party’s apex of power, on Thursday. The Politburo also transferred both their cases to military prosecutors. The decision will be confirmed during the party’s Third Plenum to be held 15-18 July, when removals from the Central Committee will be formally announced. Ousted former foreign minister Qin Gang still remains a member of the Central Committee. Xi last week said the PLA faces “deep-seated” political problems and vowed there must be “no hiding place” for corrupt officers. Li was also stripped of his membership of the national legislative body, Xinhua added, after being removed from the Central Military Commission, China’s top military body, earlier this year. Wei was also removed from the legislative body. China’s Communist Party expels two former defence ministers for corruption BY LAURIE CHEN Reuters BY BEN BLANCHARD & JEANNY KAO Reuters BLOOMBERG

FRIDAY JUNE 28, 2024 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) MYEG SERVICES BHD 101.50 -0.050 0.970 19.02 7,235.3 YNH PROPERTY BHD 94.45 -0.110 0.495 -88.35 261.6 DAGANG NEXCHANGE BHD 75.45 -0.025 0.440 10.00 1,527.7 VS INDUSTRY BHD 56.56 0.010 1.250 53.37 4,796.3 SBH MARINE HOLDINGS BHD 55.98 0.020 0.340 - 301.9 INGENIEUR GUDANG BHD 47.48 -0.005 0.060 -53.85 91.0 NOVA MSC BHD 43.53 0.025 0.195 77.27 247.1 ADVANCE INFORMATION 42.47 0.005 0.080 6.67 31.2 SNS NETWORK TECHNOLOGY BHD 38.33 -0.010 0.750 219.15 1,209.6 JCY INTERNATIONAL BHD 38.27 -0.030 0.705 220.45 1,500.6 SEALINK INTERNATIONAL BHD 38.18 -0.020 0.330 94.12 165.0 WCT HOLDINGS BHD 32.11 0.015 0.845 70.71 1,197.6 AHB HOLDINGS BHD 27.60 0.000 0.115 -11.54 85.6 ATA IMS BHD 27.12 -0.035 0.470 54.100 565.4 MALAYSIAN RESOURCES CORP BHD 23.92 -0.020 0.600 34.83 2,680.5 CIMB GROUP HOLDINGS BHD 23.16 0.010 6.770 16.98 72,398.5 SIME DARBY PROPERTY BHD 22.42 -0.020 1.310 109.60 8,909.1 VELESTO ENERGY BHD 22.14 0.005 0.265 15.22 2,177.1 PRG HOLDINGS BHD 22.10 0.010 0.175 0.00 75.7 GREEN PACKET BHD 21.59 -0.010 0.035 -12.50 69.8 Data as compiled on Jun 27, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) MQ TECHNOLOGY BHD 0.015 50.00 101.7 -40.00 24.5 G3 GLOBAL BHD 0.030 20.00 485.2 20.00 113.2 XOX NETWORKS BHD 0.030 20.00 1497.7 -14.29 34.1 THETA EDGE BHD 1.730 16.89 20598.8 152.55 204.1 ALDRICH RESOURCES BHD 0.035 16.67 1144.3 -12.50 39.0 BSL CORP BHD 0.035 16.67 202.9 -22.22 67.6 VINVEST CAPITAL HOLDINGS BHD 0.075 15.38 20909.3 25.00 72.7 NOVA MSC BHD 0.195 14.71 43529.9 77.27 247.1 CLASSITA HOLDINGS BHD 0.040 14.29 559.2 -11.11 49.3 TCS GROUP HOLDINGS BHD 0.165 13.79 7462.0 22.22 76.8 BARAKAH OFFSHORE PETROLEUM 0.045 12.50 18805.9 28.57 45.1 PDZ HOLDINGS BHD 0.050 11.11 1935.8 0.00 29.4 HEXTAR INDUSTRIES BHD 0.435 10.13 20259.3 11.54 1195.1 VELOCITY CAPITAL PARTNER BHD 0.055 10.00 1630.5 22.22 76.0 DC HEALTHCARE HOLDINGS BHD 0.225 9.76 18489.3 -44.44 224.2 SIN HENG CHAN MALAYA BHD 0.405 9.46 10069.5 17.39 120.6 GE-SHEN CORP BHD 3.400 9.32 29.2 193.10 427.9 CHINA OUHUA WINERY HOLDINGS 0.060 9.09 830.1 9.09 40.1 ECOBUILT HOLDINGS BHD 0.065 8.33 72.9 -27.78 27.4 ZELAN BHD 0.065 8.33 2,495.5 -18.75 54.9 Data as compiled on Jun 27, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) XOX BHD 0.010 -33.33 3,175.2 -33.33 51.9 GREEN PACKET BHD 0.035 -22.22 21,588.5 -12.50 69.8 INDUSTRONICS BHD 0.035 -22.22 14,853.9 -30.00 24.8 SAUDEE GROUP BHD 0.020 -20.00 20,448.9 -20.00 31.2 VIZIONE HOLDINGS BHD 0.045 -18.18 477.7 -25.00 92.1 YNH PROPERTY BHD 0.495 -18.18 94,446.5 -88.35 261.6 AVILLION BHD 0.055 -15.39 16,069.1 10.00 62.3 ICON OFFSHORE BHD 0.890 -15.24 12,816.1 52.14 554.1 SAPURA ENERGY BHD 0.035 -12.50 6881.2 -22.22 643.2 MTOUCHE TECHNOLOGY BHD 0.040 -11.11 5.2 -20.00 37.1 ARB BHD 0.045 -10.00 940.3 -30.61 56.2 JADI IMAGING HOLDINGS BHD 0.045 -10.00 258.8 -35.71 63.0 PERMAJU INDUSTRIES BHD 0.045 -10.00 260.4 -10.00 87.9 REKATECH CAPITAL BHD 0.045 -10.00 408.8 -30.77 26.6 SENTORIA GROUP BHD 0.045 -10.00 4,121.3 -50.00 27.6 WONG ENGINEERING CORP BHD 0.345 -9.21 17,627.5 13.11 86.2 KAMDAR GROUP (M) BHD 0.300 -9.09 5.0 57.89 59.4 PUC BHD 0.050 -9.09 960.8 25.00 123.4 CABNET HOLDINGS BHD 0.470 -8.74 9,096.1 104.35 84.0 QUALITY CONCRETE HOLDINGS 1.050 -8.696 33.0 -4.55 60.9 Data as compiled on Jun 27, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) DUTCH LADY MILK INDUSTRIES 35.500 -0.300 17.5 53.28 2,272.0 PETRONAS CHEMICALS GROUP 6.330 -0.190 2009.2 -11.59 50,640.0 HEINEKEN MALAYSIA BHD 22.200 -0.180 400.4 -8.04 6,706.6 ICON OFFSHORE BHD 0.890 -0.160 12816.1 52.14 554.1 KUALA LUMPUR KEPONG BHD 20.520 -0.160 953.8 -5.96 22498.2 PETRONAS GAS BHD 17.980 -0.120 562.2 3.33 35,577.6 UWC BHD 2.970 -0.120 2580.0 -15.63 3,272.8 YNH PROPERTY BHD 0.495 -0.110 94446.5 -88.35 261.6 AEON CREDIT SERVICE (M) BHD 7.380 -0.100 308.2 32.50 3768.3 HONG LEONG FINANCIAL GROUP 17.300 -0.100 51.3 5.23 19812.7 PANASONIC MANUFACTURING 20.080 -0.100 25.1 11.56 1,219.8 QUALITY CONCRETE HOLDINGS 1.050 -0.100 33.0 -4.55 60.9 EUROSPAN HOLDINGS BHD 1.620 -0.090 1.0 20.00 72.0 KIMLUN CORP BHD 1.290 -0.090 420.1 65.38 455.8 HUME CEMENT INDUSTRIES BHD 3.210 -0.080 339.4 42.67 2,328.8 MAXIS BHD 3.450 -0.080 2140.8 -10.39 27,020.7 NEW HOONG FATT HOLDINGS BHD 2.120 -0.080 29.6 28.88 350.5 PADINI HOLDINGS BHD 3.700 -0.080 50.3 5.83 2,434.3 PPB GROUP BHD 14.320 -0.080 406 -1.10 20371.6 SUPERLON HOLDINGS BHD 1.260 -0.080 859.4 45.66 199.8 Data as compiled on Jun 27, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) GE-SHEN CORP BHD 3.400 0.290 29.2 193.10 427.9 THETA EDGE BHD 1.730 0.250 20598.8 152.55 204.1 PENTAMASTER CORP BHD 5.080 0.150 4228.7 10.43 3,613.5 PTT SYNERGY GROUP BHD 2.380 0.150 3074.4 98.33 514.3 MALAYSIA AIRPORTS HOLDINGS 9.730 0.130 2521.0 32.20 16,235.0 PETRONAS DAGANGAN BHD 17.260 0.120 389.7 -20.97 17,147.0 UNITED PLANTATIONS BHD 24.200 0.120 123.2 38.11 10037.8 FRASER & NEAVE HOLDINGS BHD 31.820 0.100 335.1 13.67 11,670.9 HONG LEONG INDUSTRIES BHD 11.220 0.100 30.9 27.78 3,584.5 IJM CORP BHD 3.070 0.100 15946.2 63.30 10,763.9 YOONG ONN CORP BHD 2.300 0.090 32.3 43.75 364.9 PETRA ENERGY BHD 1.550 0.070 573.3 70.45 497.5 GAMUDA BHD 6.650 0.060 10792.6 44.88 18425.1 HEITECH PADU BHD 2.060 0.060 1004.4 134.09 219.2 MN HOLDINGS BHD 0.970 0.055 16961.4 83.02 450.6 CHIN HIN GROUP PROPERTY BHD 2.660 0.050 1051.0 218.56 1,756.7 IFCA MSC BHD 0.785 0.050 17670.8 175.44 475.1 APOLLO FOOD HOLDINGS BHD 6.840 0.040 21.2 18.75 547.2 AURELIUS TECHNOLOGIES BHD 3.700 0.040 1,046.5 42.31 1,603.9 CHIN HIN GROUP BHD 3.410 0.040 1,571.3 93.20 12,067.4 Data as compiled on Jun 27, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 39,127.80 15.64 0.04 S&P 500 * 5,477.90 8.60 0.16 NASDAQ 100 * 19,751.05 49.92 0.25 FTSE 100 * 8,225.33 -8.85 -0.11 AUSTRALIA 7,759.60 -23.41 -0.30 CHINA 2,945.85 -26.67 -0.90 HONG KONG 17,716.47 -373.46 -2.06 INDIA 78,862.82 188.57 0.24 INDONESIA 6,967.95 62.31 0.90 JAPAN 39,341.54 -325.53 -0.82 KOREA 2,784.06 -7.99 -0.29 PHILIPPINES 6,390.58 77.47 1.23 SINGAPORE 3,340.89 9.19 0.28 TAIWAN 22,905.98 -80.71 -0.35 THAILAND 1,309.96 -9.19 -0.70 VIETNAM 1,259.09 -2.15 -0.17 Data as compiled on Jun 27, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,8889.00 OIL US$ 85.770.52 RM/USD 4.7207 RM/SGD 3.4790 RM/AUD 3.1476 RM/GBP 5.9663 RM/EUR 5.0477