The Edge - 06 June 2024

CEOMorningBrief THURSDAY, JUNE 6, 2024 ISSUE 775/2024 theedgemalaysia.com NXP, VANGUARD TO BUILD US$7.8 BIL SINGAPORE CHIP WAFER PLANT AS TECH FIRMS HEDGE AGAINST CHINA p16 Report on Page 13. High Court defers decision on Najib’s house arrest bid to July 3 after admitting two affidavits HOME: Miti: US-sanctioned Jatronics not registered under Malaysia’s Strategic Trade Act p2 China solar firms halt output in SEA, including Malaysia, on US curbs - reports p2 Lack of skilled workers, weak exchange rates among top concerns of German firms in Malaysia p4 UEM Group unit inks agreement to develop 500 MW hybrid solar power plant p8 Dr M seeking disqualification of Batu Puteh RCI chief, open proceedings p14 Report on Page 3. Sarawak Cable sued by Serendib Capital over termination of white knight agreement

THURSDAY JUNE 6, 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] Miti: US-sanctioned Jatronics not registered under Malaysia’s Strategic Trade Act China solar firms halt output in SEA, including Malaysia, on US curbs Israeli container barred from entering Malaysia, told to turn back — Customs KUALA LUMPUR (June 5): Jatronics Sdn Bhd, recently sanctioned by the US, is not a registered company under the Strategic Trade Act (STA) 2010 that regulates the trade of items that could potentially be used to develop sophisticated military weapons, the Ministry of Investment, Trade and Industry (Miti) said on Wednesday. “Based on records, Jatronics is not a registered company under the STA, and has not applied for export permits,” the ministry said. The statement came after Jatronics was added to the US unilateral sanction list for allegedly supplying electronic components to Russian firms linked to the military-industrial complex. According to Miti, the move was part of the US’ broader sanctions targeting 300 entities from various countries, including BY HEE EN QI theedgemalaysia.com Bloomberg Bernama HOME China, Belgium, Türkiye, Slovakia and the United Arab Emirates, in relation to the Russia-Ukraine conflict. Miti also said Malaysia adheres to multilateral sanctions, and adopts the “restricted or prohibited end-user list” under the United Nations Security Council Resolutions (UNSCR). “Russia has not been listed by the UNSCR, and therefore is not included under the STA,” the ministry added. For context, the STA was enacted after the UN Security Council passed a resolution in 2004, which required member states to establish an export control system for the non-proliferation of weapons of mass destruction. Furthermore, Miti clarifies that Jatronics is not a semiconductor manufacturer, but a trading company primarily engaged in the trading and wholesale of semiconductor and fabrication services. The ministry further urged exporters to remain alert and stay informed of any trade-restrictive measures and unilateral sanctions imposed by major trading partners. “Miti has been engaging with the US Embassy in Kuala Lumpur on US unilateral sanctions, while continuing to enhance the monitoring of international trade dealings with Malaysian exporters and manufacturers,” it said. Miti said it will continue its regular engagement with key trading partners to address concerns, and clarify Malaysia’s neutral stance. KANGAR (June 5): The Royal Malaysian Customs Department’s Perlis branch stopped a trailer transporting container from a neighbouring country, bearing the logo of an Israel-based shipping company, from entering Malaysia at the Immigration, Customs, Quarantine and Security Complex in Padang Besar on Sunday. Its director Ismail Hashim said the Israeli company’s container ferrying frozen chicken drove through the scanning tunnel at the Road Trade Unit at 12.03pm to declare Form K1 for the purpose of importing goods into Malaysia. “During the image scanning process, the operator of the scanning machine found that the container bore the logo of ZIM. The vehicle was detained for confirmation and further inspection,” he said in a statement on Wednesday. Ismail said checks with other government agencies confirmed that containers bearing the logo of the Israel-based shipping company, ZIM, are prohibited from entering Malaysia. “The container was instructed to turn back to the neighbouring country on the same day,” he said. (June 5): Chinese solar firms are halting production at Southeast Asian factories, as increased US trade barriers create uncertainty for exports from the region. Longi Green Energy Technology Co, Ltd began gradually winding down activity at a plant in Malaysia this week, after halting all five production lines at a facility in Vietnam the week before, Chinese trade publication Arfcg.com reported on Tuesday (June 4), citing an unnamed source. Trina Solar Co, Ltd has suspended output at a factory in Thailand, Sina Finance reported on Wednesday, citing unidentified sources. A Longi spokesperson said the company had made “adjustments” to its production plans at several factories to combat plunging prices and trade policy changes since the beginning of the year. Trina didn’t immediately respond to an emailed request for comment. Chinese solar companies are trying to turn a corner, even as profits evaporate due to a wave of new factories that have come online in the past year. Instead of capturing a growing market, the new supply has overwhelmed demand, prompting US and European officials to complain that China is stymieing their efforts to develop their own supply chains. The Biden administration last month issued a suite of rules, strengthening tariffs against solar equipment. A two-year reprieve for certain solar imports from Cambodia, Malaysia, Thailand and Vietnam will end on Thursday (June 7), and the US also plans to swiftly end an exemption on two-sided, or bifacial, solar modules. The four countries have been targeted in trade complaints that Chinese manufacturers set up operations there to circumvent Obama-era import tariffs on solar modules. Together, they accounted for more than 70% of US module imports last year, BloombergNEF data show.

THURSDAY JUNE 6, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Wasco Bhd (KL:WASCO), formerly known as Wah Seong Corp Bhd, expects its earnings growth to continue in the upcoming quarters, after net profit came in at a seven-year high for the first quarter of 2024 (1QFY2024). The pipe coating specialist’s rosy earnings outlook hinges on its RM3.2 billion order book, according to Wasco group chief executive officer and managing director Giancarlo Maccagno. Maccagno expects the group, whose share price has climbed 47% since the beginning of this year, to deliver profitability in the “next few quarters” with the jobs on hand. “We don’t provide information on a quarter-to-quarter basis. The only indication that we give the market is to look at our order book. Wasco has got a reputation. It’s got a track record over the years,” Maccagno told the media briefing during the company’s investor day on Wednesday. Of the RM3.2 billion order book as at end-March, about RM2.9 billion is from its energy services segment and RM260.7 million from its bioenergy services segment. Wasco CEO sees earnings growth sustained by RM3.2 bil order book KUALA LUMPUR (June 5): Sarawak Cable Bhd (KL:SCABLE) said it is being sued by Serendib Capital Ltd over the termination of the Memorandum of Agreement between the two parties to undertake a “resuscitation exercise” to revive the loss-making manufacturer. In a filing with Bursa Malaysia on Wednesday, Sarawak Cable said the UKbased company is seeking declaratory reliefs, specific performance, a permanent injunction and damages in the lawsuit. The group said it had been served with undated and unsealed copies of the legal papers by Rosli Dahlan Saravana Partnership, the law firm representing Serendib Capital. Also named as defandants in the suit are several individuals related to the group including chairman Datuk Seri Mahmud Abu Bekir Taib, directors Yek Siew Liong, Datuk Kevin How Kow and Redzuan Rauf, former deputy chairman Datuk Sri Fong Joo Chung, group chief executive officer Russel Walter Boyd, and former company secretary Tai Yit Chan. Sarawak Cable said it has appointed the legal firm of Dinesh Ratnarajah Partnership to “vigorously defend” the group and the other defendants. The Practice Note 17 (PN17) group added that the legal proceedings would not have an impact on its regularisation plan. Sarawak Cable fell into PN17 status in September 2022 due to concerns raised by its external auditor about its viability as a going concern, after certain financial institutions suspended the group’s credit facilities. Initially given a deadline of Nov 1, 2023 to submit its regularisation plan, the group was given several extensions to resolve its PN17 status, with the latest deadline now set as Sept 30 this year. In December 2023, Sarawak Cable said it had found a white knight in Serendib Capital, which had purportedly prepared a war chest of RM250 million to help pare down its debts, and to recapitalise the cable manufacturer “to cater to growing customer demand for infrastructure grid development and high-voltage cables”. Sarawak Cable sued by Serendib Capital over termination of white knight agreement BY EMIR ZAINUL theedgemalaysia.com BY ANIS HAZIM theedgemalaysia.com About five months later, Sarawak Cable said the Memorandum of Agreement it entered into with Serendib Capital had fallen through as both parties were “unable to agree upon an exclusive working relationship”. However, Serendib Capital said in a statement that the agreement to rescue Sarawak Cable remains in force and cannot be terminated unilaterally. Sarawak Cable recently reported its eighth straight quarterly loss due to the standstill in its credit and financing lines, and a loss on the disposal of a subsidiary. The net loss for its third financial quarter ended Feb 29, 2024 (3QFY2024) widened to RM21.04 million from RM14.16 million a year earlier, while revenue declined 43% to RM74.43 million from RM130.55 million. For the first nine months of FY2024, the group’s net loss expanded to RM69.58 million from RM26.44 million previously, while revenue declined 39.9% to RM273.94 million from RM455.94 million. As of Feb 29, 2024, the group’s cash and cash equivalents stood at RM23.85 million, while its current loans and borrowings amounted to RM381.82 million. Shares in Sarawak Cable closed half a sen or 3.7% higher at 14 sen, giving the group a market capitalisation RM53.86 million. The stock has declined by 65.85% year to date. Wasco is involved in pipe coating and engineering services under its mainstay energy segment. It also manufactures boilers and steam turbines for the biomass power plant that is housed under the bioenergy services segment. Through better earnings, Maccagno said that the group may be able to resume dividend payments this year, following a hiatus after it paid a dividend of 0.4 sen per share in FY2020. “It is too early because we know we have not paid any dividend. Subject to our board approval, we will start with something before the end of this year. Then, probably by next year or the end of this year, we should be able to announce a dividend policy,” he said. Wasco’s net profit for the three months ended March 31, 2024 (1QFY2024) more than doubled to RM57 million from RM21.76 million a year earlier. Quarterly revenue grew 21% to RM643.94 million, compared to RM531.58 million. The group attributed the earnings growth to higher number of projects executed, an improved project mix as well as better margins. CONTINUES ON PAGE 4 Wasco Bhd group chief executive officer and managing director Gian Carlo Maccagno speaks at the briefing with investors on Wednesday, June 5, 2024. SHAHRIN YAHYA/ THE EDGE

THURSDAY JUNE 6, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Swiss investment bank UBS Group AG has ceased to be a substantial shareholder of YTL Corp Bhd (KL:YTL) after a series of share disposals since February, which eventually led to its shareholding in the company going below the 5% threshold. According to a Bursa Malaysia filing on Wednesday, UBS disposed of about 14.9 million shares in the company last Friday (May 31), after which it crossed below the 5% line. Based on May 31’s closing price of RM3.59, the block of shares could be worth RM53.40 million. Prior to that, UBS’ shareholding in YTL stood at 5.25% as of April 18. A quick check on Bursa Malaysia showed that UBS made at least five transactions since February to trim its stake in YTL. The biggest chunk of disposal was on Feb 29 when UBS disposed of 57.82 million shares, or a 0.53% stake, worth about RM154.38 million based on YTL’s closing price on the day of the transaction. UBS emerged as a substantial shareholder of the utilities-to-resorts conglomerate Swiss banking group UBS ceases to be substantial shareholder of YTL Corp KUALA LUMPUR (June 5): A lack of skilled workers, weak exchange rates, and slow demand are among the top concerns of German companies in Malaysia, according to the AHK World Business Outlook survey. Other concerns include the volatile geopolitical landscape, with respondents citing the China-Taiwan conflict and the Russia-Ukraine war as contributing to poor sentiments among investors. “These findings are consistent across the region, and also mirror global sentiments, as businesses are feeling the impact of economic risks,” said the Malaysian-German Chamber of Commerce and Industry’s (MGCC) executive director Jan Noether. “The silver lining is German investors in Malaysia are well prepared to cushion themselves from the impact, and confidence in conducting business here is high,” he added. According to the survey, 49% of German firms in Malaysia said they are well prepared for these shocks. As much as 61% of the respondents said they had already implemented or are in the process of implementing a supplier network expansion plan. These include exploring new sales markets, diversifying supplier networks and procurement, and employing shorter transportation routes. However, the MGCC said the main challenges faced by German firms in diversifying their supply chain are finding suitable suppliers and business partners (62%), high business costs (36%), and identifying a suitable sales market (34%). Lack of skilled workers, weak exchange rates among top concerns of German firms in Malaysia BY HEE EN QI theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com Read the full story For the full financial year ended Dec 31, 2023 (FY2023), Wasco posted a net profit of RM108.4 million in contrast to a net loss of RM6.3 million in FY2022, while revenue increased 10.13% to RM2.61 billion from RM2.37 billion. Analysts tracking the stock also expect the group’s earnings growth to be sustainable on the back of its healthy order book. However, Hong Leong Investment Bank Bhd (HLIB) cautioned that Wasco has limited scope of further growth as its order book is expected to sustain at the current level in the future, according to its recent note. Wasco has two “buy” calls and four “hold” ratings, with a consensus 12-month target price of RM1.70, according to Bloomberg data, indicating a potential 15.6% upside against its current price of RM1.47. Wasco to be more selective on future bids Following its record-high jobs on hand, Maccagno said that the company will be more selective in bidding for new jobs. Wasco is currently bidding for jobs totalling RM7.25 billion. “I think, as long as we keep the order book between RM3 billion to RM3.5 billion, it will be more than comfortable,” Maccagno said. “Now, what we need to do is to be a bit more choosy (in tendering future projects).” The company is currently running at about 70% to 80% capacity in the execution of ongoing projects, Maccagno said. Wasco will continue to prioritise projects that offer higher returns and lower risks, he said. At the closing bell on Wednesday, shares of Wasco were five sen or 3.29% lower at RM1.47, valuing the company at RM1.14 billion. FROM PAGE 3 YTL.COM (YTL) with a 5.46% stake in June last year, after its merger with Credit Suisse Group AG following Credit Suisse’s collapse. The bank’s shareholding in YTL had peaked in January this year, with 713.84 million shares or a 6.51% stake. At Wednesday’s market close, YTL’s share price was unchanged at RM3.59, giving it a market capitalisation of RM39.69 billion. The counter has climbed 86.98% year-todate and 298.89% over the last 12 months. Most recently, YTL on May 24 snapped consecutive days of rally, despite notching earnings growth in its third financial quarter ended March 31, 2024 (3QFY2024). YTL rallied to a record high of RM3.88 on May 23, but fell as much as 9% the next day. YTL’s net profit for 3QFY2024 rose 19.8% to RM496.23 million from RM414.14 million a year earlier, despite revenue coming in slightly lower by 1.7% at RM7.21 billion, compared with RM7.33 billion previously. All of its business segments — construction, cement and building materials, property investment and development, management services and others, hotels, and utilities — reported higher earnings during the quarter.

THURSDAY JUNE 6, 2024 5 THEEDGE CEO MORNING BRIEF

THURSDAY JUNE 6, 2024 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Institutional analysts covering stocks on Bursa Malaysia said the 1Q2024 results of companies under their coverage did not disappoint. In separate earnings wrap notes on Wednesday, TA Securities and MIDF Research said core earnings of stocks under coverage rose 9.1% quarter-on-quarter (q-o-q) and 20.7% respectively, while 16% of stocks under coverage reported higher than expected earnings, respectively. TA Securities attributed the performance to strong contributions from the banking, gaming, power & utilities, and transportation sectors. Meanwhile, MIDF Research said target price changes involved 55 upward adjustments and seven downward adjustments. “Furthermore, we made 17 changes to our stock recommendations, with 13 upgrades and four downgrades. “The aggregate FY2024 earnings forecast of the FBM KLCI constituents under our coverage was raised by 1.9% to RM67.0 billion. “Likewise, the aggregate FY2024 earnings forecast of the stocks under MIDF universe was raised by 2.2% to RM87.2 billion,” it said. TA Securities tweaked its end-2024 FBMKLCI target to 1,690, from 1,620, based on CY2025 price–earnings ratio (PER) of 14x, which is still a 19.5% discount compared to the last five years’ average of 17.4x. The research house said the 10 stocks that were upgraded to “buy” are Ann Joo Resources Bhd (KL:ANNJOO), CelcomDigi Bhd (KL:CDB), Farm Fresh Bhd (KL:FFB), IOI Corp Bhd (KL:IOICORP), Kim Loong Resources Bhd (KL:KMLOONG), Malakoff Corp Bhd (KL:MALAKOF), Malayan Banking Bhd (KL:MAYBANK), Scientex Bhd (KL:SCIENTX), Sime Darby Guthrie Bhd (KL:SDG), and TSH Resources Bhd (KL:TSH), whereas three stocks, namely Kuala Lumpur Kepong Bhd (KL:KLK), Sports Toto Bhd (KL:SPTOTO) and United Malacca Bhd (KL:UMCCA) were upgrade to “hold”. On the other hand, three stocks, Allianz Malaysia Bhd (KL:ALLIANZ), MISC Bhd (KL:MISC), and Telekom Malaysia Bhd (KL:TM) were downgraded to “hold”, while six stocks, namely, Amway (Malaysia) Holdings Bhd (KL:AMWAY), Apex Healthcare Bhd (KL:APEX), Cahya Mata Sarawak Bhd (KL:CMSB), Elk-Desa Resources Bhd (KL:ELKDESA), FGV Holdings Bhd (KL:FGV), and Malaysian Pacific Industries Bhd (KL:MPI), were downgraded to “sell”. Meanwhile, MIDF Research said that in 4QCY2023, the outperformers among FBM KLCI constituents under its coverage came from varied sectors. They were Axiata Group Bhd (KL:AXIATA), Hong Leong Financial Group Bhd (KL:HLFG), IOI Corp Bhd (KL:IOI), MISC, and Petronas Chemicals Group Bhd (KL: PCHEM). “Meanwhile, there were no underperformers among the FBM KLCI constituents under our coverage in the reviewed quarter,” it said. In view of the positive liquidity and fundamental considerations, MIDF Research raised its FBM KLCI, FBM Hijrah, and FBM70 targets for 2024 to 1,750 points or PER24 of 15.6x, 14,100 points or PER24 of 22.6x, and 18,900 points or PER24 of 18.8x, respectively. 1Q2024 corporate earnings did not disappoint, say analysts KUALA LUMPUR (June 5): The latest Purchasing Managers’ Index (PMI) data indicates that Malaysia’s manufacturing sector is on course for a broader recovery in the second half of this year, but prolonged disruptions in the supply chain from geopolitical issues could pose a challenge, said economists. Additionally, confidence levels have eased despite the positive sentiment among Malaysian manufacturers and expectations of higher output in the coming year. This has impacted manufacturers’ willingness to acquire input inventories, they said. Recent data from S&P Global showed that Malaysia’s manufacturing PMI climbed to 50.2 in May — marking the first expansion since August 2022 — compared to 49.0 in the previous month, driven by a resurgence in new business and production activities. The global manufacturing PMI rose to a 22-month high of 50.9 in May, while the Asean manufacturing PMI printed a 13-month high of 51.7 in May. HSBC Global Research said that the increase in Malaysia’s monthly export orders is encouraging, as the country has recently lagged behind other major exporters like Korea and Taiwan in export recovery. This lag was attributed to Malaysia’s semiconductor sector not being in the segments of the chip supply chain boosted by the AI-driven tech upcycle. Looking ahead, MIDF Investment Bank anticipates that Malaysia’s outbound shipments of manufactured goods, including Malaysia’s manufacturing sector on track for broader recovery in 2H, say economists electrical and electronics (E&E), refined petroleum, chemicals, and machinery and equipment, will expand faster in the second half of 2024. “Also, we expect steady expansion of palm oil and mining exports amid stable global commodity prices. On that note, we reiterated our expectation for exports of goods to rebound and expand by +5.2% in 2024, compared to -8.0% in 2023,” said the research house. Public Invest Research, meanwhile, said that Malaysia’s PMI is set to converge with global trends, consistently exceeding the 50-level mark throughout 2024, contingent upon stabilisation of global uncertainties. “Malaysia’s manufacturing sector is poised for positive growth in 2024, supported by promising global semiconductor market projections. Overall sentiment remains positive, with firms forecasting increased output over the coming year. “However, the softening in confidence has dampened manufacturers’ willingness to expand input inventories. These trends necessitate close monitoring for further signs of a sustained recovery,” it added. BY SYAFIQAH SALIM theedgemalaysia.com BY ISHRA KAMISO theedgemalaysia.com

THURSDAY JUNE 6, 2024 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Suria Capital Holdings Bhd (KL:SURIA), which operates eight major ports in Sabah, said it has entered into a deal to develop a mixed commercial project in the Kota Kinabalu Port area. In a filing to Bursa Malaysia on Wednesday, the group said it will be jointly developing the project, known as the Jesselton Docklands 1 project, with Jesselton Docklands 1 Sdn Bhd (JD 1). Suria Capital said the two parties will set up a project team that will be responsible for managing all aspects of the project’s execution and implementation. Suria Capital will be entitled to at least RM180 million, representing 18% of the estimated net development value (NDV) of RM1 billion. This entitlement will be satisfied through RM45 million in cash and RM135 million in kind, the group said. Suria Capital’s final instalment payment of RM135 million will be delivered in the form of a hotel, retail units, carpark spaces, or other commercial components, excluding Airbnb units for short, medium, or long-term stays, with the company having the right to Suria Capital inks JV agreement for mixed commercial project in Kota Kinabalu select the units before JD 1 sells any of them. Additionally, if the actual NDV exceeds RM1 billion, Suria Capital will be entitled to any excess entitlement, which will be satisfied by payment in kind, in the form of retail units, carparks, or other commercial components, excluding Airbnb units, for short-, medium-, or long-term stays. On Feb 7, Suria Capital announced a collaboration with BEDI Development, a 75%-owned unit of EXSIM Development Sdn Bhd, to develop two parcels of land, measuring 14.23 hectares in Kota Kinabalu. This led to the formation of two joint venture companies, namely JD 1 and Jesselton Docklands 2 Sdn Bhd, tasked with undertaking an integrated mixed-commercial project with a collective net development value of RM4.2 billion. Suria Capital added that the Jesselton Docklands 1 project is anticipated to be completed within six years from the unconditional date of the agreement. Suria Capital’s stock closed one sen or 0.51% higher at RM1.97 on Wednesday, giving the group a market capitalisation of RM681.27 million. BY CHOY NYEN YIAU theedgemalaysia.com

THURSDAY JUNE 6, 2024 8 THEEDGE CEO MORNING BRIEF HOME GEORGE TOWN (June 5): The Penang government has decided to grant free water for the first 10,000 litres in every bill for six months and to extend a RM20 rebate for large households. State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said the state executive council at its meeting on Wednesday directed the Penang Water Supply Corp (PBAPP) to implement these rebates beginning July 1. The “Rebat Mesra Keluarga” of RM20 is for households with at least eight people and monthly income of up to RM5,000, an increase from the previous RM2,250 threshold. “With this rebate, all domestic water users will enjoy a rebate of RM6.20 on each bill. For example, users in the first band only need to pay RM6.20 (RM12.40 minus RM6.20) for two months. “For users in the second band who are billed RM30, they only need to pay RM23.80 for two months,” he said in a statement. He said the state government acknowledges the concerns regarding the new domestic water tariff rates implemented in line with the tariff adjustment by the National Water Services Commission (SPAN) effective since February this year. He said although Penang still enjoys the second-lowest tariff in the country with the new rates, many have complained about the sharp increase compared to the previous rates that were not adjusted for 31 years for the first band (20 cubic metres) and nine years for the other bands. Therefore, he said the state government hopes that the provision of 10,000 litres of free water and the RM20 rebate for large households will help alleviate the people’s burden. Many consumers in Penang were shocked by the increase in water bills, with most rising between 100%and 150% since the adjustment of domestic water tariffs last February. Penang gives free water for first 10,000 litres, extends RM20 rebate KUALA LUMPUR (June 5): UEM Group Bhd, a wholly-owned unit of Khazanah Nasional Bhd, said on Wednesday that it has signed an agreement to develop a 500-megawatt (MW) hybrid solar power plant project in Johor. UEM Group through its green industry arm UEM Lestra Bhd inked the agreement with Blueleaf Energy and ITRAMAS Corporation Sdn bhd. This marks the second project to be developed by UEM Lestra and its partners as part of the one-gigawatt (GW) hybrid solar power plant flagship venture under the National Energy Transition Roadmap (NETR), according to a statement. “In less than a year of us signing the Memorandum of Understanding (in July 2023), we have agreed on all of the terms and signed all of the necessary agreements. This shows the commitment and dedication of all parties involved in realising the ambitious 1 GW hybrid solar power plant venture,” said managing director of UEM Group and chairman of UEM Lestra Datuk Mohd Izani Ghani. “The collaboration between both domestic and foreign entities in this project allows us to leverage on the strategic complementarities and generate the momentum in driving forward Malaysia’s energy transition agenda. All hands are now on deck to attain the necessary endorsements from the relevant authorities and at the same time continue to secure potential off-takers, which to date have been very encouraging,” he added. UEM Lestra, Blueleaf and ITRAMAS will work together with the government on the details of the third-party access (TPA) framework that will be required for the project to move to the execution phase, the statement read. A shareholders’ agreement has been formaliSed between UEM Lestra and Blueleaf Energy to establish a joint venture entity named Lestra Blueleaf JV Sdn Bhd, with a 51% stake controlled by UEM Lestra while the remaining 49% will be owned by Blueleaf Energy. Additionally, a technical partner agreement has been inked between Lestra Blueleaf JV and ITRAMAS which will see the latter provide technical services in developing a complete engineering, procurement, construction and commissioning (EPCC) package. UEM Group unit inks agreement to develop 500 MW hybrid solar power plant BY SYAFIQAH SALIM theedgemalaysia.com Bernama Read also: Green energy development a step towards making Sarawak top global player in new economy Signing of shareholders agreement between UEM Lestra Berhad and Blueleaf Energy. Front row, from left: Nor Hafifi Jalal, GM Business Development UEM Lestra; Harman Faiz Habib Muhamad, Acting CEO UEM Lestra; Raghuram Natarajan, CEO Blueleaf Energy and Scott Griffiths, Head of Strategy & Planning Blueleaf Energy. Back row, from left: Dato’ Mohd Izani Ghani, Chairman of UEM Lestra and MD UEM Group; Nik Hadi Nik Mahmood, Malaysia Country Head of Macquarie Group.

THURSDAY JUNE 6, 2024 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): The private sector has been urged to collaborate with the government to tackle the growing concerns over the anticipated ageing populations in the country. Collective participation from various segments of society includes communities, non-governmental organisations (NGOs), and individuals themselves is essential to curb these issues, according to Professor Datuk Norma Mansor, the director of the Social Wellbeing Research Centre at the University of Malaya. Norma emphasised that relying solely on the government is “insufficient” as private companies can also do their part by investing in the ageing space, supporting communities, and developing innovative solutions for older individuals. “It is not just the government’s [responsibilities], but also the private sector should be encouraged for them to be in the ageing space and also our communities and NGOs” Norma told The Edge on the sidelines of the International Social Wellbeing Conference 2024 (ISWC) For instance, companies can invest in providing technology which plays a sigKUALA LUMPUR (June 5): The reformation of retirement schemes by the Employees Provident Fund (EPF) needs to go beyond finances and include multi-sectoral aspects such as health and social, said experts. Beyond finances, a multi-sectoral approach is crucial for formulating effective retirement schemes in the country considering both health and social aspects, according to Prof Dr Shahrul Bahyah Kamaruzzaman, the consultant geriatrician from University of Malaya (UM) and UM Specialist Centre. “If we are going to look at it only with regards to finances, but not look into the health as well as the social side of things, then it would be inadequate,” Shahrul said. Numerous models can be emulated by the country in fostering a holistic comprehensive retirement scheme framework such as age-friendly communities and strategies under the World Health Organisation (WHO) framework, or an integrated care model, to name a few, according to Shahrul. While financial constraints are often central to discussions about retirement and pension frameworks for ageing societies, other social and economic parts of the ecosystems should not be overlooked. Speaking at the International Social Wellbeing Conference 2024 (ISWC) here on Wednesday, Dr Lee Hwok-Aun, a senior fellow from ISEAS-Yusof Ishak InstiBY LUQMAN AMIN theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com Professor Datuk Norma Mansor, the director of the Social Wellbeing Research Centre at the University of Malaya, said relying solely on the government is 'insufficient' as private companies can also do their part by investing in the ageing space, supporting communities, and developing innovative solutions for older individuals. SUHAIMI YUSUF/ THE EDGE Private sector urged to stand with govt to face ageing population issue Retirement and pension framework reforms need to be holistic and go beyond finances, say experts nificant role in assisting the elderly with their needs, she noted. Earlier on Tuesday, Prime Minister Datuk Seri Anwar Ibrahim, who officiated the ISWC, said during his opening speech that Malaysian government-linked companies including the Employees Provident Fund (EPF), Khazanah Nasional Bhd, and Retirement Fund (Inc) “have taken the lead in investing in ventures targeted at developing the silver economy in Malaysia”. Looking forward, Anwar gave it a call for an active involvement coming from the private sector in developing products and solutions in this field in ensuring “no is left behind in the race”. tute pointed out the need to have “lifelong learning” in response to changes in the labour market situation in the country. Lee noted that the pandemic has led to a sharp increase in “re-employment” among senior citizens aged 55-64, which raises concerns over time. “There’s been no attention to that phenomenon of rising unemployment among seniors in 2020. That’s why I wanted to make sure that we brought it up because we’re talking about re-employment [of] older workers in the labour market” Lee told The Edge on the sidelines during the ISWC. “For now, it’s probably back to kind of the more normal situation where unemployment [for the elderly] is very low. But what if another crisis happens? Are we prepared? Are we focused? Does the labour market provide jobs for them?” Lee questioned. EPF to focus on formulating a multitier retirement scheme framework Meanwhile, EPF chief executive officer (CEO) Ahmad Zulqarnain Onn said his organisation is committed towards reforming the retirement framework. He emphasised during his closing remarks the urgency of transitioning from a “single pillar” system to a “multi-tier or multi-pillar system.” “As for today, [we] have a single-filler system and there is a need to add these multi-tier or multi-traditional layers to the system. “This [is] pressing to do so because time is short [as] you have seen the data [that we] will become an aged nation by 2057,” Ahmad said. Earlier on Wednesday, Professor Datuk Norma Mansor, the director of the Social Wellbeing Research Centre at the University of Malaya told The Edge the need to adapt the system, with the focus on having a contributory social pension (CSP) scheme. The mechanism, akin to insurance, allows individuals to receive returns based on their age or upon maturity after 15 years. Recipients would benefit from basic pension alongside the CSP scheme, in addition to their EPF savings or the Public Retirement Scheme. Read the full story

THURSDAY JUNE 6, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Animation company Kucingko Bhd said on Wednesday it has signed an agreement with Kenanga Investment Bank to underwrite its upcoming initial public offering (IPO) on the ACE Market. The agreement marks another step forward for the company that provides 2D animation production for global broadcasters and streaming platforms since it secured listing approval from Bursa Malaysia on April 30. If successful, Kucingko would be the first animation production studio to be listed in Malaysia. Under the agreement signed, Kenanga will underwrite the 35 million new shares for application by the Malaysian public and eligible persons under pink form allocations, Kucingko said in a statement. The proposed IPO involves the issuance of 100 million new shares, of which 25 million shares are allocated to the Malaysian public and 10 million to eligible persons. The remaining 65 million new shares will be privately placed to select investors. The IPO will also offer 100 million existing shares through private placement to select investors. All in all, the listing offers investors up to 40% stake in Kucingko. Kucingko’s IPO offers “excellent diversity for investors as the Malaysian market has historically lacked publicly traded animation production companies,” said Datuk Roslan Tik, executive director, head of group investment banking and Islamic banking of Kenanga Investment Bank. Funds raised from the IPO will be “instrumental in scaling our business through setting up a sales office in the US, our largest market, and increasing our production capacity by setting up branch offices in Sabah and Sarawak to tap into talent pools,” said Kucingko executive director See Chin Joo. “We believe that Kucingko’s position as the first 2D animation company to be listed on Bursa Malaysia will have a positive impact on the market and industry, setting a benchmark for excellence in the creative sector,” said Andrew Ooi Kok Hong, another executive director of Kucingko. Kucingko derives almost 100% of its revenue from providing animation production services, primarily in international markets, including North America, Europe and Asia Pacific. Kucingko is mainly controlled by See and Ooi. Its wholly-owned subsidiary Inspidea Sdn Bhd produces 2D animation for animated series and animated short films, having completed 59 projects worth RM63.22 million in total from 2020 till June 2023 with nearly 77 hours of content. Kenanga Investment Bank Bhd is the principal adviser, sponsor, underwriter and placement agent for the IPO. Kenanga IB to underwrite Kucingko’s ACE Market IPO KUALA LUMPUR (June 5): Shares in ITMAX System Bhd (KL:ITMAX) extended gains to a new all-time high on Wednesday, after analysts said the traffic management and video surveillance company is set for more jobs in Johor. ITMAX climbed as much as 2.48% or six sen to RM2.48, adding to Tuesday’s 6.1% gain. The stock closed at RM2.42 on Wednesday, valuing the company at RM2.49 billion, after 4.77 million shares changed hands. Analysts said revenue from the latest smart parking system contract from the Iskandar Puteri City Council will provide additional recurring income and flagged potential for ITMAX to expand the service to the other 15 councils. On Tuesday, Southmax Sdn Bhd, a 65%-owned subsidiary of ITMAX, was awarded a contract from the city council to operate the smart parking system for 32,025 on-street parking bays for 15 years starting June 1, 2024. If the contract is expanded to 200,000 parking bays in the greater Johor area, with six days parking operations at four hours per day and 60 sen per hour, the system could generate an average of RM11.5 million monthly or RM138.2 million per year, said Hong Leong Investment Bank in a note to clients. That could increase ITMAX’ bottom line by RM48 million per year based on the same 70:30 revenue sharing and 50% margin between ITMAX and the council, Hong Leong Investment Bank said. Shares of ITMAX have risen over 35% year-to-date, tracking the broad rally in the technology sector. All three analysts covering the stock have a “buy” rating with a ITMAX shares hit new all-time high as analysts bet on more smart parking jobs in Johor 12-month target price of RM2.78, indicating a potential 13% upside from its current price. Under the latest contract, ITMAX will manage and maintain the smart parking system in the Iskandar Puteri district. Revenue generated will be split between ITMAX and the city council in a 70:30 ratio, with the revenue-sharing model applied to all cash proceeds collected via its parking app, Parkmax@Johor. BY SYAFIQAH SALIM theedgemalaysia.com BY JASON NG theedgemalaysia.com ITMAX System Bhd 0 5 10 15 20 25 May 15, 2023 June 5, 2024 1 2 3 Vol (mil) RM *RM2.42 RM1.42 *As at market close on June 5, 2024. Source: Bloomberg Kucingko Bhd executive directors See Chin Joo (left) and Ooi Kok Hong (right). KUCINGKO BHD

THURSDAY JUNE 6, 2024 11 THEEDGE CEO MORNING BRIEF READY FOR THE BIG LEAP in collaboration with The Johor Green Deal, launched last November highlights the state’s commitment to create a low-carbon, sustainable and liveable environment for all. It has three objectives, covering the environment, social and economy sectors, and encompasses five pillars: Energy; transport and mobility; land use, nature and water; low-carbon cities; and industry. PHOTO BY DAVID ST LOH To read more, get a copy of The Edge—Johor Special Edition that comes together with The Edge Malaysia WEEK OF JUNE 10 Click to subscribe

thursday june 6, 2024 12 The E dge C E O m o rning brief home news In brie f Nestcon unit secures RM3.6 mil contract to install solar PV system KUALA LUMPUR (June 5): An indirect unit of construction group Nestcon Bhd (KL:NESTCON), whose share price shot up over 20% just two weeks ago, has secured a RM3.6 million contract to develop and install a solar photovoltaic (PV) system. According to Nestcon’s filing with Bursa Malaysia on Wednesday, Nestcon Solar Sdn Bhd (NSSB), a wholly-owned subsidiary of Nestcon Sustainable Solutions Sdn Bhd, which is in turn a 51%-owned subsidiary of the company, had entered into an agreement with Subang Safety Glass Sdn Bhd to develop, design, install, construct and commission a solar PV system on the rooftop of Subang Safety Glass’ premises. This follows a memorandum of understanding signed between Nestcon and Nam Heng Safety Glass Sdn Bhd in August 2022 for the development of solar PV facilities at properties owned by Nam Heng Glass, including its related corporations in Malaysia. The contract shall commence once certain conditions are satisfied, including receipt of the approval to the application for net energy metering from Sustainable Energy Development Authority (Seda) by Subang Safety Glass, completion of a connection assessment study, and the completion of a satisfactory physical inspection and assessment report of the site by NSSB. — by Emir Zainul Singapore to share construction productivity system expertise with Malaysia — Nanta SINGAPORE (June 5): Singapore has agreed to share knowledge and expertise in the use of the Electronic Productivity Submission System (ePSS) to assist the construction industry in Malaysia in measuring worker productivity, said Works Minister Datuk Seri Alexander Nanta Linggi. He said this was among the matters discussed during a bilateral meeting with Singapore’s Minister for National Development, Desmond Lee, in the republic on Monday. “One of the discussions highlighted was the ePSS under the Building and Construction Authority (BCA) of the Singapore Ministry of National Development. “In this regard, the BCA has agreed to collaborate with the Construction Industry Development Board (CIDB) of Malaysia in terms of knowledge and expertise sharing on the use of ePSS to enable CIDB to measure worker productivity,” he said in a statement on Wednesday. In Singapore, builders are required to monitor manpower usage in their projects and submit the data to BCA through the ePSS, and from the data collected, the agency can calculate the industry average project productivity for different building categories. Meanwhile, the 40-minute meeting also focused on the expansion plan of the North-South Expressway PLUS between North Senai and Sedenak in Johor. — Bernama Leong Hup CEO mops up shares KUALA LUMPUR (June 5): Leong Hup International Bhd’s (KL:LHI) group chief executive officer Tan Sri Lau Tuang Nguang has acquired a total of 8.88 million shares in the poultry, egg and livestock feed producer over the past week, for about RM5.02 million. According to a Bursa Malaysia filing on Wednesday, Lau bought two blocks of shares — two million shares and one million shares — for 56 sen apiece last Friday (May 31). The purchase continued on Tuesday (June 4). Lau bought 4.04 million shares for 57 sen apiece and two blocks of shares — 965,000 shares and 875,000 shares — for 57 sen apiece on Wednesday. These transactions raised his direct stake in Leong Hup to 0.24%. He also holds a 1.74% indirect stake in the group. Lau is the brother of Tan Sri Lau Eng Guang and Lau Chia Nguang, and the uncle to Datuk Lau Joo Hong, Lau Joo Han and Lau Joo Keat, who are directors and major shareholders of the company. Leong Hup’s share price has been hovering around 55 sen, after the stock fell from its three-year high of 73 sen in late February. The selldown on the poultry firm was mainly driven by expectation of lower earnings for the financial year ending Dec 31, 2024 (FY2024), amid absence of subsidies and lack of demand growth catalysts. However, Leong Hup’s net profit for 1QFY2024 more than doubled to RM56.58 million, as compared to RM22.14 million a year earlier, thanks to the turnaround in its Indonesian operations on better margins for chicks and chickens. Quarterly revenue increased nearly 10% to RM2.41 billion, from RM2.2 billion a year ago. — by Emir Zainul ANZ exits AMMB with sale of remaining 5.17% stake KUALA LUMPUR (June 5): The Australia & New Zealand Banking Group Ltd (ANZ) has disposed of its remaining 5.17% stake in AMMB Holdings Bhd (KL:AMBANK) for RM701.16 million, confirming a report by The Edge last week that the Australian group was planning to exit Malaysia’s sixth-largest lender by assets. ANZ, through its wholly owned subsidiary ANZ Fund Pty Ltd, sold the stake comprising 171.02 million shares on Wednesday, said AMMB in a filing to Bursa Malaysia, without mentioning who bought the shares. In a separate statement, ANZ said it had agreed to sell the chunk of shares via a block trade at a price of RM4.10 per share. This was at the higher end of the RM4.05 to RM4.10 price range that The Edge reported the block was put on sale for, citing a term sheet it had sighted. The offer price represents a 2.84% discount to AMMB’s closing price on May 30 of RM4.22. “The sale of our equity stake in AmBank is a significant milestone in delivering on our strategy to simplify the bank (ANZ). We have valued our partnership with AmBank and wish the group well for the future,” said ANZ chief financial officer Farhan Faruqui. NZ plans to use the sale proceeds to increase its CET1 ratio by about five basis points, which it said is additional to the 16bps of capital released from the sale of its initial block of 16.5% of AMMB shares in March 2024. “The sale proceeds will have no material impact on profit,” its statement read, adding the settlement is anticipated to take place on Wednesday.ANZ, Australia’s fourth-largest bank, has long made known its intention to divest its block of AMMB shares. In March, it offloaded a 16.5% stake in AMMB for RM2.1 billion, reducing its equity interest to 5.17%. — by Choy Nyen Yiau Shahrin Yahya/The Edge

THURSDAY JUNE 6, 2024 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (JUNE 5): Former SRC International Sdn Bhd chairman Tan Sri Ismee Ismail testified in the High Court here on Wednesday that decisions made by the Ministry of Finance (MOF) were effectively decisions by the government, in relation to the fact that former prime minister Datuk Seri Najib Razak was wearing two hats, one at SRC and one at MOF. Ismee, 59, who was testifying in Najib’s SRC International civil suit, was speaking about the workings of SRC International and how its board of directors never objected to decisions made by the main shareholder, the Ministry of Finance Inc (MOF Inc), which was unIsmee: Decisions in SRC by MOF effectively decisions by govt KUALA LUMPUR (June 5): The High Court (Appellate and Special Powers Division) on Wednesday rescheduled its decision on Datuk Seri Najib Razak’s pardon bid to be placed under house arrest for his six-year jail conviction, after allowing the admission of two affidavits, one by the Pahang menteri besar, and the other by Najib. Judge Datuk Amarjeet Singh Serjit Singh set July 3 as the new date after hearing additional submissions from Najib’s counsel Tan Sri Muhammad Shafee Abdullah. Senior federal counsels Shamsul Bolhassan and Ahmad Hanir Hambaly @ Arwi, who appeared for the respondents including the government, objected to the admission of the affidavits. The government’s grounds for objecting to the affidavits were that submissions had been heard previously, and Amarjeet had set Wednesday for a decision on whether to grant leave (permission) for a judicial review. Despite this, Amarjeet allowed the two affidavits to be admitted for consideration by the court in order to grant leave to hear the merits of Najib’s application. In judicial review applications, leave or permission has to be gained by the court first before the merits or substantive of an application can be heard. This is to ensure that the application is not frivolous or vexatious, or an abuse of the court process. The former prime minister filed the judicial review application on April 1, for him to be served a copy of the addendum to the pardon order, which would purportedly allow him to serve the rest of his six years’ jail sentence under house arrest at home here. Najib had originally been sentenced to 12 years’ imprisonment and a fine of RM210 million, after being found guilty on seven charges in relation to abuse of power, criminal breach of trust, and money laundering of SRC International Sdn Bhd funds. SRC is a former subsidiary of 1Malaysia Development Bhd (1MDB). The Federal Territory Pardons Board later granted Najib a pardon and reduced his jail term to six years, and the fine to RM50 million. Wan Rosdy claims Zafrul informed him of addendum order Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail had affirmed an affidavit in support of Najib’s application, claiming last month that Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz had informed him of an addendum to Najib’s pardon bid. The purported addendum allegedly says that Najib is to serve the remainder of his six years’ jail sentence over the SRC case under house arrest. Prior to this, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had also affirmed an affidavit in support of Najib, claiming that Zafrul had shown him a copy of the addendum order, which was on Zafrul’s handphone, and claiming the existence of such a document. High Court defers decision on Najib’s house arrest bid to July 3 after admitting two affidavits Zahid also said he did not have a copy of the addendum order, which purportedly allows the former prime minister to serve the remainder of his sentence under house arrest. Even so, Zahid claims it exists. Prior to this, Zafrul had wanted to affirm an affidavit in reply to certain items in Zahid’s affidavit, which Zafrul described as containing “factual inaccuracies”. However, Amarjeet rejected the minister’s application. Najib last month also affirmed in an affidavit, which was allowed by Amarjeet, that Prime Minister Datuk Seri Anwar Ibrahim’s speech during the PKR special convention on April 21 seemed to suggest the existence of the addendum order, and hence argued that it should be produced. “I have received the main order [of the pardon], but there is no response from the respondents over the addendum order,” Najib said. “I contend that as the addendum order is now clearly proven to exist, the pardons authority and the other respondents have a duty in law likewise to transmit the addendum order to the commissioner general of the Prisons Department in order for them to serve to me. The refusal by all the respondents to enforce the addendum order is a separate issue, which the respondents should refer to the court for its final decision. “The respondents cannot on their own decide to ignore the 16th Yang di-Pertuan Agong’s addendum order. The clumsy attempt to conceal this addendum order is disingenuous,” Najib said. Besides the Prisons Department commissioner general, others named as respondents included the home minister, the attorney general, the Federal Territories Pardons Board, the minister of institutional reform and law, the director general of legal affairs in the Prime Minister’s Department, and the Malaysian government. BY HAFIZ YATIM theedgemalaysia.com BY TIMOTHY ACHARIAM theedgemalaysia.com der the purview of Najib’s then-ministry. MOF Inc was under the Ministry of Finance, whose minister at the time was Najib. At the same time, Najib was also the “advisor emeritus” of SRC International. “Any decisions made by the main shareholder of SRC was also approved by Najib, who also was the advisor emeritus to SRC,” Ismee said in his witness statement to the court. “Therefore, decisions by the minister of finance are effectively decisions made by the government of Malaysia. I must stress here that Najib at that time was also Prime Minister,” said Ismee. In this SRC International civil suit, the company is suing Najib and the former chief executive officer of the company, Nik Faisal Ariff Kamil (who is currently at large), over a RM4 billion Retirement Fund Inc (KWAP) loan which was disbursed in the second half of 2011 and the first half of 2012 to SRC. CONTINUES ON PAGE 14

THURSDAY JUNE 6, 2024 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (June 5): Opposition leader Datuk Seri Hamzah Zainudin’s son has been charged once again. This time, Muhammad Faisal Hamzah, 40, is charged with one count of allegedly accepting bribes amounting to RM100,000 in relation to a multi-million ringgit government contract. He was charged on Wednesday with allegedly accepting the monies in March 2018 for Heitech Padu Bhd to select two other companies — Rimba Merpati Sdn Bhd and Syarikat Per My Solutions — as marketing consultants for a RM33 million government tender. The tender was by the Companies Commission of Malaysia (SSM) for the supply, rental, implementation, training, support and maintenance of security infrastructure. The charge was framed under Section 16(a)(A) of the Malaysian Anti-Corruption Commission Act, and is punishable under Section 24(1) of the same Act. Muhammad Faisal faces a maximum 20-year jail term, and a fine of not less than five times the bribe sum or RM10,000, whichever is higher. He pleaded not guilty and claimed trial after the charge was read to him before Sessions Court judge Rozina Ayob. The court granted bail at RM25,000, with one surety, and for his passport to be impounded by the court. Muhammad Faisal is also barred from travelling overseas. Deputy public prosecutor Mahadi Abdul Jumaat prosecuted on Wednesday, while the accused was represented by Ravinder Singh Dhalliwal. In April last year, Muhammad Faisal was slapped with nine counts of violations in relation to cooking oil subsidies. He was charged with allegedly providing false information by producing fake invoices on purported sale of the oil, in violation of Section 8(4) of the Control of Supplies Act 1961. Hamzah Zainudin’s son charged with accepting RM100,000 bribe BY TARANI PALANI theedgemalaysia.com BY HAFIZ YATIM theedgemalaysia.com As reported in this trial, a sum of RM3.6 billion was immediately transferred out when the funds came in. Out of that total, a sum of US$120 million (RM563.7 million) made its way to Najib’s bank account. In Ismee’s recorded witness statement, he said that the claims by Najib against him were baseless. He elaborated that he and the board of directors had carried out the orders and decisions of SRC’s main shareholder (Najib) “in good faith”, without suspicion that any criminal activity was going on. “... to my understanding, the orders given were the government’s wishes to carry out investments for the better of the country by SRC as a ‘special purpose vehicle’,” Ismee said. SRC International has obtained a judgement in default against Nik Faisal, who was named as Najib’s proxy. Ismee: I was not a puppet to Najib Najib’s counsel, Harvinderjit Singh then asked Ismee whether he was acting as a puppet to Najib while he served on the board. Harvinderjit: Were you a puppet of Najib’s in SRC? Ismee: What do you mean? Harvinderjit: Would you consider yourself a puppet? Ismee: No, I was not. Ismee said that he was appointed to the position on August 1, 2011. FROM PAGE 13 He resigned on Aug 15, 2014, citing corporate governance issues pertaining to the management of the company by Nik Faisal — especially regarding the company’s accounts and its finances. Harvinderjit then pressed him on the issue of whether Ismee had been a “puppet”, which seemed to confuse Ismee. Harvinderjit: The phrase “puppet” implies that whatever was told to you, you don’t think twice, you don’t question. You just did it. Ismee: Yes and no. Harvinderjit then asked him about Najib being a “puppeteer”, and that if Ismee was not a puppet, that must mean Najib was not a “puppeteer” as has been claimed by previous witnesses. Harvinderjit: You accept you weren’t a puppet, and in the same way, Najib wasn’t a puppeteer? Ismee: Yes, to the board. Harvinderjit then asked him about his personal relationship with Najib and whether he had gone to see Najib about the misgivings in SRC, to which Ismee replied “No”. The lawyer then asked him if he had Najib’s personal phone number to which Ismee responded with a monosyllabic “No”, as he had been doing during the cross-examination by Harvinderjit. Read the full story Dr M seeking disqualification of Batu Puteh RCI chief, open proceedings KUALA LUMPUR (June 5): Tun Dr Mahathir Mohamad has filed a judicial review application at the High Court demanding the proceedings of the Pulau Batu Puteh Royal Commission of Inquiry (RCI) be open to the public, instead of being held behind closed doors. The former prime minister named the RCI chairman, former chief justice Tun Md Raus Sharif, as well as the other members of the commission — former Federal Court judge Tan Sri Zainun Ali, lawyer Datuk Dr Baljit Singh Sidhu, law professors Datuk Dr Johan Shamsuddin Sabaruddin and Datin Dr Faridah Jalil, former Johor financial officer Datuk Mohammed Ridha Abd Kadir and Maritime Department director Dickson Dollah — and RCI secretary Zamri Misman as respondents. Mahathir is also seeking leave from the court to apply for a declaration that as the person investigated by the RCI, he and his lawyers should be allowed to attend the proceedings of the inquiry, and that they should be handed all documents, witness list and documentary evidence tabled at the proceedings. For judicial review applications, leave must first be obtained from the court for the merits of the application to be heard. In the suit filed through the legal firm of Law Practice of Rafique, Mahathir is also seeking an injunction to prevent Md Raus from acting as chairman of the RCI, and Baljit and Mohammad Ridha as members of the commission. Further, Mahathir wants the ongoing RCI proceedings to be postponed until the conclusion of his judicial review. Mahathir and his lawyers had reportedly been barred from attending and participating in the proceedings, held behind closed doors at the Prime Minister’s Department, after his lawyers applied to do so on May 21. Read the full story

THURSDAY JUNE 6, 2024 15 THEEDGE CEO MORNING BRIEF NOW OPEN FOR SUBMISSIONS >>> • Entry forms can be downloaded for free from theedgemalaysia.com and edgeprop.my. • For enquiries, please contact us at 603-7721 8198 or [email protected] SUBMISSION DEADLINE All entries must reach The Edge Communications Sdn Bhd at Level 3, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor, by 5PM, FRIDAY, JUNE 28, 2024 The Edge Malaysia Top Property Developers Awards, the anchor awards of The Edge Malaysia Property Excellence Awards, was established in 2003 to rank Malaysia’s best property players based on their quantitative and qualitative attributes. The Edge Malaysia-PAM Green Excellence Award is an exercise to recognise property developments that demonstrate sustainable design that is innovative and outstanding while contributing positively to the community. The Edge Malaysia Affordable Urban Housing Excellence Award is an exercise to recognise outstanding affordable housing projects for the urban middleincome group undertaken wholly by private sector property developers in Malaysia. The Edge Malaysia-PEPS Value Creation Excellence Award is an exercise to measure the capital appreciation of properties between the property developers’ selling price and the subsequent resale price in secondary transactions. The Edge Malaysia Outstanding Overseas Project Award is an exercise to recognise impressive projects undertaken wholly by Malaysian private sector property developers in other countries. Official Solar Partner Supported By REAL ESTATE MATTERS Presented by

THURSDAY JUNE 6, 2024 16 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE (June 5): Some Chinese artificial intelligence (AI) chip companies are now designing less powerful processors to retain access to Taiwan Semiconductor Manufacturing Co (TSMC) production in the face of US sanctions, four people with knowledge of the matter said. Aiming to impede breakthroughs in AI and supercomputing by China’s military, Washington has imposed a series of export controls on highly sophisticated processors from companies such as Nvidia Corp and on chip manufacturing equipment. Those restrictions also prevent TSMC — which uses US chipmaking tools — as well as other overseas chip manufacturers from taking orders to produce them. The most recent set of US export controls imposed in October last year have exposed just how limited China’s production capacity for advanced chips is, and how dependent Chinese AI chip design companies are on TSMC — the world’s leading chip contract manufacturer — the sources said. The four sources, one of which has direct knowledge of the issue, declined to be identified, due to the sensitivity of chip-related matters in China. Two top Chinese AI chip firms, MetaX and Enflame, submitted downgraded designs of their chips to TSMC in late 2023 to comply with US restrictions, according to two of the people. Read the full story Chinese AI chip firms downgrading designs to secure TSMC production (June 5): NXP Semiconductors NV is teaming up with a company partly owned by Taiwan Semiconductor Manufacturing Co (TSMC) to build a US$7.8 billion chip wafer plant in Singapore, marking a boost for the island nation’s tech ambitions. TSMC-backed Vanguard International Semiconductor Corp and NXP will begin constructing the facility in the second half of this year, with production starting in 2027, the two companies said on Wednesday in a statement. Taiwan-based Vanguard will own 60% of the joint venture and the Netherlands-based NXP the rest. The outlay is the latest win for Southeast Asia as global tech firms try and avoid overreliance on specific regions such as Taiwan and China by diversifying the locations of their manufacturing bases. Chip customers are demanding this diversification as insurance against potential geopolitical risks such as escalating tensions between the US and China disrupting operations in Taiwan, which dominates in semiconductor manufacturing. “NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control, and geographic resilience to support our long-term growth objectives,” NXP chief executive officer Kurt Sievers said in the statement. Southeast Asia is emerging as a force in technology manufacturing, helped by relatively low labour costs, ample technology talent and its proximity to major Asian consumer markets. Amazon.com Inc, Microsoft Corp and Nvidia Corp are among the companies spending billions of dollars in the region of nearly 700 million people, as China turns more hostile to US firms and India remains practically and politically challenging to navigate. The new factory will make silicon wafers with a 12-inch diameter, which are more advanced than the 8-inch ones fabricated at Vanguard’s existing facility in Singapore. Most new chip plants globally use 12-inch wafers because that gives a higher chip output per wafer. The wafers from the new facility will form the basis of relatively mature 130-nanometre (nm) to 40nm chips that aren’t as cutting-edge as those made by TSMC in Taiwan. They will be used for functions such as power control in automotive, industrial, consumer and mobile products. Vanguard will inject US$2.4 billion into the joint venture and NXP US$1.6 billion, and the firms have agreed to contribute an additional US$1.9 billion later on. The remaining funding includes loans by third parties to the joint venture. Vanguard will operate the facility, which is set to create 1,500 jobs in Singapore. That’s a potential boon for Singapore’s newly appointed prime minister Lawrence Wong, whose tiny but wealthy country is navigating challenges including rising regional competition. Southeast Asian countries from Vietnam to Thailand are attracting more tech investment, and neighbouring Malaysia last week pledged more than US$5 billion in fiscal support to lure chipmakers into the country. NXP, Vanguard to build US$7.8 bil Singapore chip wafer plant as tech firms hedge against China BY JILLIAN DEUTSCH & GAO YUAN Bloomberg BY FANNY POTKIN Reuters TSMC-backed Vanguard International Semiconductor Corp and NXP Semiconductors have teemed up to build a US$7.8 billion chip wafer plant in Singapore BLOOMBERG

THURSDAY JUNE 6, 2024 17 THEEDGE CEO MORNING BRIEF WORLD (June 5): Elon Musk confirmed that he had diverted artificial intelligence (AI) chips away from Tesla Inc to his X Corp and xAI Corp ventures, offering explanations both for the redirected shipment and internal Nvidia Corp emails casting doubt on the carmaker’s procurement plans. In a series of posts on Tuesday on X, Musk wrote that Tesla had no place to put Nvidia chips where they could be turned on. CNBC reported earlier that the billionaire redirected 12,000 of the chipmaker’s H100 graphics processing units originally slated for Tesla to X instead, citing an Nvidia memo from December. In another email CNBC viewed from late April, Nvidia staff said Musk made statements during the automaker’s first-quarter earnings call and on X that conflicted with the company’s bookings with the chipmaker. The Tesla chief executive officer said during the April 23 earnings call that roughly 35,000 of the company’s H100s were active, and he expected the electric-vehicle maker to have around 85,000 working by year end. On April 28, he wrote on X that Tesla will spend around US$10 billion (RM46.99 billion) this year on AI. Musk suggested in one of his posts on Tuesday that Nvidia wouldn’t be able to track all the money Tesla is spending on AI this year, writing that about half of its expenditures will be internal. The company is working on its own supercomputer as part of broader efforts to develop self-driving technology. It also procures sensors for all of its cars, regardless of whether consumers pay extra for its more advanced driver-assistance system. “My current best guess for Nvidia purchases by Tesla are US$3 billion to US$4 billion this year,” Musk wrote. Following CNBC’s report, Tesla shares erased gains in early trading and fell as much as 1.3% after the open. The stock has dropped about 30% this year. Musk’s plans for developing AI within Tesla have come under greater scrutiny since he threatened in January to take that work elsewhere unless he’s awarded around 25% voting control of the electric-vehicle maker. Weeks after making that demand, a Musk explains away diverting Nvidia AI chips from Tesla to X LONDON (June 5): Google parent Alphabet must face a lawsuit worth up to £13.6 billion (US$17.4 billion or RM81.7 billion) for allegedly abusing its dominance in the online advertising market, London’s Competition Appeal Tribunal (CAT) ruled on Wednesday. The lawsuit, which seeks damages on behalf of publishers of websites and apps based in the United Kingdom, is the latest case to focus on the search giant’s business practices. Ad Tech Collective Action is bringing the claim on behalf of publishers who say they have suffered losses due to Google’s allegedly anti-competitive behaviour. Google last month urged the CAT to block the case, which it argued was incoherent. The company “strongly rejects the underlying allegations”, its lawyers said in court documents. The CAT said in a written ruling that it would certify the case to proceed towards a trial, which is unlikely to take place before the end of 2025. The tribunal also emphasised the test for certifying a case under the UK’s collective proceedings regime — which is roughly equivalent to the US’ class action regime — is relatively low. “Google works constructively with publishers across the UK and Europe,” Tribunal rules US$17 bil UK adtech lawsuit against Google can go ahead BY SAM TOBIN Reuters BY CRAIG TRUDELL Bloomberg Delaware court voided the compensation package that would have awarded him tens of billions of dollars worth of stock options and boosted his stake in the carmaker. Tesla shareholders will vote on the pay deal again in its June 13 annual meeting. Musk ordered up Tesla’s biggest-ever lay-offs earlier this year, and is staking its future on self-driving vehicle development. While the idea of offering an autonomous taxi service has been kicking around the company for at least eight years, Tesla has yet to stand up much of the infrastructure it would need, nor has it secured regulatory approval to test robotaxis on public roads. The billionaire acquired X, the company formerly known as Twitter, for US$44 billion in late 2022, and founded xAI the following year. The two companies are closely linked, with Musk having said late last year that investors of X will own 25% of xAI. xAI announced last month that it had raised US$6 billion. Read also: Hackers targeted celebrities on TikTok using private messages Alphabet names Lilly veteran Anat Ashkenazi as finance chief Google legal director Oliver Bethell said in a statement. Bethell added: “This lawsuit is speculative and opportunistic. We’ll oppose it vigorously and on the facts.” Claudio Pollack, a partner of Ad Tech Collection Action, said: “This is a decision of major importance to the victims of Google’s anti-competitive conduct in ad tech. Google will now have to answer for its practices in a full trial.” Ad Tech Collective Action’s case comes amid ongoing probes by regulators into Google’s adtech business, including by Britain’s Competition and Markets Authority and the European Commission. Google is also fighting two lawsuits in the US, one brought by the Department of Justice and another by Texas and other states, accusing the company of anti-competitive conduct. Google’s lawyers said in documents for the CAT case that the company’s “impact in the ad tech industry has been hugely pro-competitive”. Wednesday’s decision is the latest against a tech giant to be given the green light by the CAT, which already this year has certified a US$3.8 billion case against Facebook parent Meta and a nearly US$1 billion case against Apple. REUTERS

THURSDAY JUNE 6, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (June 5): Thai Prime Minister Srettha Thavisin’s administration is discussing ways to exert more control over the country’s central bank after repeatedly clashing with the monetary authority on economic policy, according to people familiar with the matter. One of the measures under discussion focuses on the Bank of Thailand’s (BOT) board chairman role, which will open up in September, the people said. While the chairman doesn’t have powers to dictate monetary policy, the official can evaluate the BOT governor’s performance as well as have a say in which outside experts join the Monetary Policy Committee (MPC). Kittiratt Na-Ranong, a former finance minister-turned-adviser to Srettha, and Supavud Saicheua, an outspoken critic of the central bank and former adviser to ruling Pheu Thai party, are among those in consideration for the BOT chairman’s job, the people said, requesting anonymity as the discussions are private. Porametee Vimolsiri, who completes his term as head of the BOT board in September, was appointed by the erstwhile military-led establishment, which also picked the current governor Sethaput Suthiwartnaruep. The BOT’s seven-member MPC comprises three central bank officials, including the governor, and four external members. When Sethaput’s term ends in September 2025, the government will push for a new governor who is likely to be more sympathetic and aligned with its views, the people said. Srettha’s administration will have a say in who succeeds him, with the finance minister tasked with appointing a search committee. Thai government spokesman Chai Wacharonke said he couldn’t comment on the issue as he wasn’t aware of the move, while a BOT representative declined to comment. Kittiratt and Supavud didn’t respond to phone calls and text messages seeking comments. The baht fell as much as 0.3% on the news before trading little changed at 36.590 to a dollar by 12.31pm local time. The key stock index extended gains to as much as 0.5% with a gauge of finance and securities firms jumping more than 2%. The discussions on gaining more influence over the central bank follow growing differences between Srettha and Sethaput on approaches to revive the US$500 bilBY SUTTINEE YUVEJWATTANA Bloomberg Thailand eyes tighter grip on central bank after spat lion (RM2.35 trillion) economy, which has grown an average 1.9% in the past decade — a pace far slower than its regional peers. While the government has favored cutting rates from a decade-high 2.5% to boost consumption and growth, the central bank has instead advocated structural reforms to aid the economy. The disagreement prompted Paetongtarn Shinawatra, former premier Thaksin Shinawatra’s daughter and head of Pheu Thai party, to publicly blame the BOT’s autonomy as an “obstacle” to revitalising Southeast Asia’s second-largest economy. Within weeks, Finance Minister Pichai Chunhavajira called for a review of the BOT’s inflation target, saying it needs to reflect current economic conditions — which the people familiar said was a pressure tactic to get the BOT to adjust monetary policy. This is not the first time that a ruling party linked to Thaksin has clashed with the central bank. In 2001, Thaksin fired the then BOT governor after the official defied his call for interest rate adjustments. In 2013, Kittiratt, who was finance minister in Yingluck Shinawatra’s cabinet, had publicly pressured the then central bank head Prasarn Trairatvorakul to cut rates. The latest dispute has weighed on Thailand’s financial markets with foreign investors offloading the nation’s currency and equities. Global funds have pulled out almost US$3 billion from local stocks and bonds so far this year, while the baht is among the biggest losers during the period, in part due to the dollar’s strength. The move to gain control over BOT poses the risk of the government losing longer-term advantages from distancing itself from central bank rate decisions, said Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank in Singapore. “And the advantages gained from lower policy rates will be more than offset by surging risk premium and currency depreciation,” Varathan said. “Central bank independence is not just good for the BOT and the baht, but for the government too.” Sethaput and his team have so far resisted political pressures, with deputy governor Alisara Mahasandana last week defending the BOT’s 1-3% inflation goal as “appropriate,” although price gains have been well below the floor of its target range for 12 straight months. Read the full story While the government has favoured cutting rates from a decade-high 2.5% to boost consumption and growth, the central bank has instead advocated structural reforms to aid the economy. BLOOMBERG

THURSDAY JUNE 6, 2024 19 THEEDGE CEO MORNING BRIEF WORLD (June 5): For many foreign investors, India’s near US$400 billion stock-market wipeout on Tuesday (June 4) is just another opportunity to buy into what they see as one of the world’s most promising economies. While Prime Minister Narendra Modi will undoubtedly find it trickier to pass tough reforms after his party lost its majority in the lower house of parliament in the just-concluded national elections, several global money managers say the investment case for Indian stocks remains intact. Arun Sai, senior multi-asset strategist at Pictet Asset Management, is among those who view Tuesday’s selloff in India’s NSE Nifty 50 Index as a “fantastic” chance to grab shares in some sectors, such as banks. “The first thing I did was message my portfolio managers who invest in India to say if Nifty banks are down because of a lower-than-expected mandate for Modi, it’s a buying opportunity,” Sai said in an interview on Tuesday. “What the average foreign investor gets wrong about India is policy continuity. They think that if Modi gets less of a mandate, then a lot of the policies will go to the background,” he said. “The policy continuity is being underestimated; it isn’t too much of an issue in India.” Modi’s election setback only a blip for some global stock funds (June 5): Indian Prime Minister Narendra Modi is expected to be sworn-in for a record-equalling third term on June 8, after key allies pledged their continued support a day after a humbling election verdict that saw his party lose its majority in parliament. Modi, a populist who has dominated Indian politics since coming to power in 2014, will for the first time need the support of regional allies whose loyalties have wavered over the years, which could complicate the government’s reform agenda. On Wednesday, two allies in his National Democratic Alliance coalition, the Telugu Desam Party, a key regional player in the southern state of Andhra Pradesh, and the Janata Dal (United) which rules the northern state of Bihar, pledged their support. “We are with the NDA, I will be attending the meeting in Delhi today,” Chandrababu Naidu, the leader of the TDP, told reporters, referring to a meeting of the BJP-led alliance scheduled to take place later in the day. The federal cabinet met on Wednesday morning and recommended the dissolution of parliament, a constitutional formality before Modi can form a new government. Modi and his new cabinet were scheduled to be sworn-in on Saturday, local media reported. The NDA won 293 seats in the 543-member lower house of parliament, more than the 272 needed to form a government. Modi’s BJP won 240 seats on its own, a weakened verdict which could slow India’s fiscal tightening, ratings agency Moody’s said. The weakened majority for Modi’s alliance could pose challenges for the more ambitious elements of the government’s reform agenda, ratings agency Fitch said. However, it added: “Despite the slimmer majority, we do expect broad policy continuity to persist, with the government retaining its focus on its capex push, ease of doing business measures, and gradual fiscal consolidation.” Rural setbacks With the party losing most ground in rural areas, investors say land and labour reforms, that had been expected to unlock value and growth, will probably fall by the wayside. Newspapers said Modi’s aura had dimmed, with the Indian Express’ banner Indian PM Modi set to take oath for third time on June 8 as allies pledge support BY RISHIKA SADAM & SHILPA JAMKHANDIKAR Reuters BY FARAH ELBAHRAWY & SAGARIKA JAISINGHANI Bloomberg headline reading: “India gives NDA a third term, Modi a message.” Modi’s own victory in his seat of Varanasi, considered one of the holiest cities for Hindus, was subdued, with his margin of victory down from nearly 500,000 votes at the last general election in 2019 to a little more than 150,000. But this reduced victory may not necessarily mean reform paralysis, the chairman of a government finance panel, Arvind Panagariya, said in an editorial in the Economic Times newspaper. “Despite the reduced majority in parliament, the necessary reforms are entirely feasible. Delivering sustained growth at an accelerated pace can only strengthen the government’s hand in the coming years,” he said. The opposition India alliance led by Rahul Gandhi’s centrist Congress party won 230 seats, more than forecast. Congress alone won 99, almost double the 52 it won in 2019 — a surprise jump that is expected to boost Gandhi’s standing. The India alliance was also expected to meet on Wednesday in New Delhi, and discuss a future course of action. Read the full story BLOOMBERG

thursday june 6, 2024 20 The E dge C E O m o rning brief world (June 5): Bitcoin poked above the US$71,000 (RM333,540) level, and flirted with a gain for a fifth straight session, reflecting greater confidence in global markets about the prospect of Federal Reserve (Fed) interest-rate reductions this year. The largest digital asset’s run of daily increases is the longest in three months, leaving the original cryptocurrency at US$70,977 as of 5am on Wednesday in London, some 4% shy of the record high US$73,798 set in mid-March. Traders are pricing in a bigger chance of a Fed rate cut as soon as November, in the wake of data signalling moderating US inflation and a softer jobs market. Some Treasury yields registered their largest two-day drops of the year, a loosening in financial conditions that may help speculative assets like crypto. “Crypto assets are responding positively to the decline in rates,” Tom Couture, a digital-asset strategy vice-president at Fundstrat Global Advisors, said in a note. BNB jump Top-five coins including BNB and Solana have climbed over the past 24 hours. Tokens beloved by the meme crowd, such as dogwifhat, are also up. BNB stems from the ecosystem around Binance, the biggest crypto exchange, and is often viewed as an arbiter of sentiment towards the company. BNB changed hands at approximately US$702, above the previous all-time peak of nearly US$691 from 2021, CoinMarketCap data showed. BNB’s more than 100% rally this year indicates that perceptions of Binance’s outlook have improved since November, when the exchange pleaded guilty to violations of US anti-money-laundering and sanctions laws, and was hit with a landmark US$4.3 billion penalty. Bitcoin in recent days struggled to hold climbs above US$70,000, but optimists are drawing succour from a stretch of inflows into dedicated US exchange-traded funds, as well as moves in Washington towards a crypto regulatory framework. Bitcoin posts longest winning run since March on rate-cut wagers (June 5): The US services sector expanded in May by the most in nine months, powered by the largest monthly gain in a measure of business activity since 2021. The Institute for Supply Management’s composite gauge of services jumped 4.4 points, the most since the start of last year, to 53.8. Readings above 50 indicate expansion, and the May figure exceeded all forecasts in a Bloomberg survey of economists. The ISM’s business activity index — which parallels the group’s factory output gauge — soared 10.3 points, the largest monthly advance since March 2021. At 61.2, the highest level since November 2022, the measure offers some reassurance for the economy after a recent spate of weaker data. “Survey respondents indicated that overall business is increasing, with growth rates continuing to vary by company and industry,” Anthony Nieves, chair of the ISM Services Business Survey Committee, said in a statement. “Employment challenges remain, primarily attributed to difficulties in backfilling positions and controlling labor US service providers chalk up strongest growth in nine months expenses. The majority of respondents indicate that inflation and the current interest rates are an impediment to improving business conditions,” Nieves said. Thirteen services industries reported growth in May, led by real estate and health care. Five sectors, including retail trade, noted a decline. Earlier this week, the ISM said its manufacturing gauge dropped to a threemonth low as a measure of orders fell by the most in almost two years and production nearly stagnated. The economy got off to an uninspiring start to the year — expanding at just a 1.3% annualized rate in the first quarter, the weakest performance since 2022. While the manufacturing survey showed a notable pullback in bookings, orders placed with service providers expanded at faster pace in May. That indicates resilient demand in the largest part of the economy that continues to contribute to lingering inflationary pressures. Export orders snapped back sharply in May, with the gauge showing the fastest growth in eight months. by Vince Golle & Mark Niquette Bloomberg by Sunil Jagtiani Bloomberg bloomberg

thursday june 6, 2024 21 The E dge C E O m o rning brief world (June 5): Australia’s economy extended a streak of subdued growth in the first three months of the year as elevated interest rates and cost of living pressures weighed on households. Gross domestic product (GDP) advanced 0.1% from an upwardly revised 0.3% in the prior quarter and compared with economists’ forecasts of 0.2%, Australian Bureau of Statistics (ABS) data showed on Wednesday. From a year earlier, the economy grew 1.1%, below estimates of 1.2%. The annual result was the weakest, outside the pandemic, since the first quarter of 1992, when Australia was just emerging from recession, and compares with a decade average of 2.4%. The slowdown will likely increase pressure on the Reserve Bank of Australia (RBA) to begin an easing cycle after it held rates unchanged at 4.35% at its past four meetings. Governor Michele Bullock reiterated earlier on Wednesday that the RBA remains data-driven and isn’t ruling anything in or out. She predicted GDP would be “low”, adding that household spending in the economy is “very, very weak.” The Australian dollar was steady around 66.50 US cents, while yields held an earlier decline as money markets finessed expectations the RBA may cut rates this year. Money markets maintained pricing for a roughly one-third chance of an easing by December, according to swaps data compiled by Bloomberg. Australia’s economy remains weak on household spending squeeze OTTAWA (June 5): The Bank of Canada on Wednesday trimmed its key policy rate by 25 basis points to 4.75%, in a widely expected move that marked its first cut in four years, and said more easing was likely if inflation continued to ease. After keeping interest rates at a more than two-decade high of 5% for almost a year, the BOC said the indicators for underlying inflation looked increasingly positive. “With further and more sustained evidence underlying inflation is easing, monetary policy no longer needs to be as restrictive,” governor Tiff Macklem said in his opening remarks after the announcement. Financial markets immediately priced in a 42% chance of a cut to 4.50% next month, and a cut in September was fully priced in. A majority of economists polled by Reuters had expected Wednesday’s cut. The Canadian dollar pared its early gains and weakened by 0.18% to 1.3702 to the US dollar, or 72.98 US cents after the decision. The BOC joins Sweden’s Riksbank and the Swiss National Bank in bringing down rates that have burdened households and businesses alike, and muted economic growth amid easing price pressures. The European Central Bank is most likely to follow suit on Thursday, financial markets foresee. (June 5): China’s services sector expanded at its fastest pace since July last year, a private survey showed, pointing to resilience that may alleviate concerns over the economy’s outlook after weak official figures. The Caixin China services purchasing managers index (PMI) rose to 54 in May, according to a statement released jointly by Caixin and S&P Global on Wednesday. That’s the highest in 10 months, and beat the median forecast of 52.5 in a Bloomberg survey of economists. Any reading above 50 suggests an expansion. The private survey result provided investors with a respite from worries stoked by official data published last week showing only moderate growth in the services sector in May, and an unexpected shrinkage in the manufacturing industry. A Caixin poll of Chinese manufacturers, published on Monday, also indicated solid expansion in factory activity last month. The private gauge of services activity has indicated an expansion for 17 straight months, with total new orders increasing at the quickest pace in a year on recovering demand, according to the statement. “Market sentiment remained optimistic. Surveyed companies were generally confident about future market prospects, although they expressed concerns over the global economic landscape and growing costs of raw materials,” said Wang Zhe, a senior economist at Caixin Insight Group, in the statement. The Caixin survey focuses on smaller firms compared to the official services PMI. Bank of Canada cuts rates for first time in four years China’s services expansion picks up to strongest in 10 months by Promit Mukherjee & David Ljunggren Reuters Bloomberg by Swati Pandey Bloomberg bloomberg

THURSDAY JUNE 6, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (June 5): After more than a year of eye-watering airfares post-Covid, there’s some good news for flyers this summer, at least for those travelling in economy — prices aren’t expected to go any higher and in fact may moderate. That was the assessment of many airline chief executives gathered in Dubai this week for IATA’s annual meeting. Several singled out the UK as one place where demand is looking particularly weak. Upcoming elections around Europe may also be suppressing people’s desire to spend on travel, they said, as economic uncertainties weigh on consumer sentiment. “In the UK, specifically in economy class, we’re seeing a bit less robust demand but a strong summer overall,” Virgin Atlantic Airways Ltd chief executive officer Shai Weiss said. “That tells us there’s a bifurcation of prospects for individuals.” Ryanair Holdings plc’s Michael O’Leary was one of the first to sound the alarm about softer fares last month, predicting they’d hold steady into summer even with aircraft in short supply, challenging the accepted wisdom that a lack of supply always means higher prices. United Airlines Holdings Inc CEO Scott Kirby on Monday described the picture right now as “steady as she goes” with demand holding but not increasing, while Emirates president Tim Clark said despite strong demand going into summer, prices are “very much at an equilibrium”. IATA director general Willie Walsh said the chance of political change in Europe was one reason people may be less inclined to travel. The UK goes to the polls on July 4 and the European Parliament holds its elections in the coming days. “With economy class fares I’ve heard a number of CEOs say pricing is a bit softer, particularly in the leisure market,” said Walsh. “It’s interesting, when I think back to my time as a CEO, this was often influenced by elections.” Walsh oversaw the merger of British Airways and Iberia that formed IAG in 2011. Data from aviation consultancy Cirium backs up the trend, with European domestic fares steady since last summer. Transatlantic fares have fallen as more carriers have entered the lucrative market. Cirium said that as more capacity comes back, fares will likely fall. “Airlines work so closely in understanding how everyone else is charging on the route, almost on an hourly basis,” Cirium CEO Jeremy Bowen said. “With increased capacity, if an airline opens up on a route it will probably deflate prices.” Read also: SIA and Cathay sign MOU to collaborate on sustainability initiatives Airfares set to moderate, at least in economy class — CEOs BRUSSELS (June 5): US fast-food chain McDonald’s does not have the right to use the term “Big Mac” for poultry products after it had not used it for them for five consecutive years, Europe’s second top court said on Wednesday, in a partial win for Irish rival Supermac’s in a long-running trademark dispute. The Luxembourg-based General Court’s ruling centred on Supermac’s attempt in 2017 to revoke McDonald’s use of the name Big Mac which the US company had registered in 1996 for meat and poultry products and services rendered at restaurants. The European Union Intellectual Property Office (EUIPO) dismissed Supermac’s application for revocation and confirmed McDonald’s use of the term for meat and chicken sandwiches, prompting the Irish company to challenge the decision. Supermac’s, which opened its first restaurants in Galway in 1978, sells beef and chicken burgers as well as fried chicken nuggets and sandwiches. The General Court rejected McDonald’s arguments and partially annulled and altered EUIPO’s decision. “McDonald’s loses the EU trade mark Big Mac in respect of poultry products,” judges ruled. “McDonald’s has not proved genuine use within a continuous period of five years in the European Union in connection with certain goods and services,” they said. McDonald’s did not immediately respond to a request for comment. The ruling can be appealed to the Court of Justice of the European Union, Europe’s highest. No more chicken Big Macs: EU court rules against McDonald’s in trademark case BY FOO YUN CHEE Reuters BY CHARLOTTE RYAN Bloomberg BLOOMBERG REUTERS

THURSDAY JUNE 6, 2024 23 THEEDGE CEO MORNING BRIEF WORLD (June 5): Chinese tech giant Tencent Holdings Ltd has moved into a new space at a prime office tower in Singapore to bring together more employees in the city state. Staff at the social media and gaming conglomerate moved into CapitaSky, a 29-storey tower in Singapore’s central business district this week, from a WeWork Cos office at 30 Raffles Place, according to people familiar with the matter, who asked not to be identified discussing private matters. A Tencent spokesperson confirmed that the company had moved staff to the new location. For now, Tencent is taking up one floor, or about half of a 56,000 sq ft (5,203 sq m) flexible working space in the tower. The firm may eventually move staff from another co-working centre at the nearby CapitaSpring tower when the lease ends into the new space, said the people. Other tenants in CapitaSky include Allianz SE and Boston Consulting Group Inc, according to the building’s majority owner CapitaLand Integrated Commercial Trust. The Work Project, a co-working operator backed by CapitaLand Group, operates both the CapitaSky and CapitaSpring spaces. Its head of sales Sheena Goh confirmed the move in a statement, saying it affirms its “threeTencent moves into Singapore tower to consolidate office space (June 5): Hong Kong’s central bank chief and executives at UBS Group AG and HSBC Holdings plc called for the expansion of wealth links between the city and mainland China, months after a key initiative was bolstered. The Hong Kong Monetary Authority is in talks with the industry about potentially further increasing the Wealth Management Connect programme to accommodate the needs of richer investors, chief executive Eddie Yue said at the Bloomberg Wealth summit in the city on Wednesday. Authorities have been stepping up efforts to financially integrate Hong Kong to the mainland, after the city struggled following years of strict Covid-19 policies and the imposition of a national security law in 2020. The quota for the Wealth Connect programme for individuals to invest in Hong Kong was tripled to three million yuan (US$414,000 or RM1.94 million) in February. The current quota is “not quite enough for private bank clients” who need to diversify their assets, Yue said. He also asked whether there’s a way to have a “separate channel” to capture such customers. UBS’s Asia wealth chief Amy Lo agreed that the quota had failed to atUBS, HSBC urge China to expand wealth links with Hong Kong to invest in Hong Kong, has picked up since the quota was expanded. Southbound sales surged to 22.3 billion yuan in April, up from just 382 million yuan a year earlier. Read also: Chinese move billions to Hong Kong banks, seeking higher yields Hong Kong luxury home sales rebound as wealthy buyers return BY KIUYAN WONG Bloomberg BY LOW DE WEI & JOSH XIAO Bloomberg year strong partnership” with Tencent. “We recently relocated one of our offices from 30 Raffles Place to The Work Project at CapitaSky due to the conclusion of our lease agreement,” the Tencent spokesperson said. “We are excited to continue our business in Singapore.” Tencent’s move reflects the cautious mood in an office market showing early signs of weakness due to rising lay-offs in sectors like tech and finance, along with the shift to working from home. Some firms are consolidating staff in one location, while keeping the option for future expansion if needed. Others including Meta Platforms Inc, Citigroup Inc and BNP Paribas SA have moved to cut space. Still, Singapore has so far skirted the downturns seen in other cities, with vacancy rates for prime central business district offices hovering at 2.6% at the end of the first quarter, according to Colliers International Group Inc. That’s less than a fifth of the rate for Central-based offices in Hong Kong, a rival financial hub. Singapore has benefited from an influx of wealth and firms, particularly from China, as companies seek to expand regionally and reduce their presence at home amid rising US tensions. That includes TikTok Inc, which has set up its headquarters in the city state, as well as clothing firm Shein Group Ltd. Read also: China’s Tiger Brokers eyes Singapore’s rich to drive growth REUTERS tract private bank clients. “One of the strengths of Hong Kong is the advisory capability and the breadth and depth of product offerings,” Lo, the chairman of global wealth management for Asia, said at the same event. She said there is a need to relax the current “execution-only” model to allow banks to advise clients under the programme. Annabel Spring, HSBC’s global private banking and wealth chief executive officer, said she was “delighted” to hear Yue talk about wealth connect channels widening and amounts going up. The Wealth Connect, which allows residents in major southern Chinese cities such as Shenzhen and Guangzhou BLOOMBERG

THURSDAY JUNE 6, 2024 24 THEEDGE CEO MORNING BRIEF WORLD TAIPEI (June 5): In the week and a half since NvidiaCEO Jensen Huang arrived in Taiwan, his every move has been breathlessly followed. Huang, the local boy who made good, is the subject of wall-to-wall coverage on Taiwanese television and reporters trail him constantly. He was mobbed by attendees at the Computex tech trade fair and has featured in thousands of social media posts. Broadcasters have highlighted each restaurant Huang has dined at, resulting in booming business for the lucky eateries. “Jensanity”, as some Taiwanese have taken to calling his sky-high popularity, has taken over the island. At Computex, a leather-jacket clad Huang, holding a plastic cup of beer, shouted to a group of people crowding around him: “Who makes the best graphics cards?” “Nvidia!” they shouted back. For fans, the co-founder and leader of the AI chip giant — now the third-most valuable company in the US and key to the artificial intelligence revolution — is only getting his due. “He’s just such an inspiration — he’s one of us,” said engineer Hol Chang, 38, as he waited to hear Huang speak at Computex this week. “What he is doing will change the world.” “He’s like a pop star. That’s how we view him,” said Amanda Shih, who works in finance and was happy to have seen him at Computex after missing out on a ticket to a speech he gave at Taipei’s elite National Taiwan University on Sunday. His fame in Taiwan prompts bemusement from Nvidia colleagues and executives in the chip industry. Others note this intense interest never happens in the US in Silicon Valley, where Nvidia is based, he’s sometimes but not always recognised. Huang, 61, who was born in the southern city of Tainan, Taiwan’s historic capital, before emigrating to the United States at the age of 9, has returned the love. He has hobnobbed with the likes of Morris Chang, the retired founder of Taiwanese chip behemoth TSMC at the popular Ningxia Night Market, but has also taken time to meet with ordinary admirers. BY BEN BLANCHARD & MAX A CHERNEY Reuters Like a pop star, Nvidia’s CEO Huang stirs up ‘Jensanity’ in Taiwan He’s patiently stopped to pose for selfies, answer questions about what he has eaten and sign autographs including a less conventional signature request from one female fan to sign her top across her chest. On Saturday night, Huang threw the first ball at a baseball game in Taipei, and apologised to the crowd for his poor Mandarin which he said he had only learned in the US. “I want to tell you that I am very grateful that you made me and our company Nvidia feel so welcome in Taiwan. Taiwan is the home of Nvidia’s very treasured partners,” he said in English, before reeling off names such as TSMC and Foxconn. He regularly speaks Taiwanese when out on the streets in Taiwan and at press events. The language is closely associated with those who champion Taiwan’s separate identity from China, though it is also spoken in China’s Fujian province and is generally known as Hokkien. “In the past, some people looked down on Taiwanese. Now Jensen Huang, the ‘three trillion dollar man’, naturally uses his mother tongue,” Wang Ting-yu, a senior lawmaker for Taiwan’s ruling Democratic Progressive Party, wrote in a Facebook post. Huang’s comments that he was thinking of building another research and development centre in Taiwan, maybe in the southern cities of Tainan and Kaohsiung, where a lot of tech manufacturing already takes place, sparked light-hearted but still serious pitches by both cities’ mayors on Facebook. “I’ve got a sailing license myself. If future Nvidia employees get welcomed to Kaohsiung, we will include three boat seats, so they can go out to sea at any time,” the city’s mayor Chen Chi-mai wrote above a picture of himself captaining a sailboat. His fame in Taiwan prompts bemusement from Nvidia colleagues and executives in the chip industry. Others note this intense interest never happens in the US in Silicon Valley, where Nvidia is based, he's sometimes but not always recognised. Nvidia CEO Jensen Huang arrives at an event at Computex forum in Taipei June 4, 2024. REUTERS

THURSDAY JUNE 6, 2024 25 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) DAGANG NEXCHANGE BHD 203.540 0.020 0.48 20.00 1,631.5 DATASONIC GROUP BHD 73.070 0.015 0.52 22.35 1,450.3 JCY INTERNATIONAL BHD 67.000 0.020 0.62 179.55 1,301.6 MYEG SERVICES BHD 56.090 -0.010 1.09 33.74 8,130.4 SNS NETWORK TECHNOLOGY BHD 50.590 -0.005 0.65 176.60 1,048.3 WCT HOLDINGS BHD 49.900 0.020 0.63 26.26 885.8 INTA BINA GROUP BHD 36.900 0.040 0.47 78.85 253.5 TOP GLOVE CORP BHD 36.730 0.000 1.04 15.56 8329.9 FARM PRICE HOLDINGS BHD 36.530 0.035 0.49 - 220.5 VELESTO ENERGY BHD 34.630 -0.005 0.26 13.04 2,136.1 ASTRO MALAYSIA HOLDINGS BHD 28.620 0.020 0.385 -2.5 2009.32 BORNEO OIL BHD 26.380 -0.005 0.005 -66.67 60.0 MAH SING GROUP BHD 26.030 0.030 1.600 92.77 4,096.2 MMAG HOLDINGS BHD 25.270 -0.005 0.300 215.79 510.0 SMART ASIA CHEMICAL BHD 24.73 0.010 0.460 - 170.1 JENTAYU SUSTAINABLES BHD 24.590 0.005 0.920 -28.68 403.8 BUMI ARMADA BHD 23.980 -0.015 0.555 12.12 3,290.0 CIMB GROUP HOLDINGS BHD 23.220 -0.100 6.890 19.06 73,608.5 MALAYSIAN RESOURCES CORP BHD 22.980 -0.005 0.635 42.70 2,836.9 TANCO HOLDINGS BHD 22.710 -0.095 0.935 58.47 1,954.0 Data as compiled on Jun 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA HOLDINGS BHD 0.010 100.00 852.7 0.00 64.5 TALAM TRANSFORM BHD 0.015 50.00 1979.0 0.00 64.4 XOX BHD 0.015 50.00 3,769.5 0.00 77.9 SOUTH MALAYSIA INDUSTRIES BHD 0.610 38.64 5,504.6 -3.17 128.1 ZEN TECH INTERNATIONAL BHD 0.020 33.33 244.9 0.00 62.2 SAUDEE GROUP BHD 0.025 25.00 13,857.7 0.00 39.0 ABM FUJIYA BHD 0.395 23.44 8.1 6.76 71.1 XIDELANG HOLDINGS LTD 0.030 20.00 32.0 20.00 63.5 SINARAN ADVANCE GROUP BHD 0.070 16.67 121.9 -17.65 64.1 HEXTAR CAPITAL BHD 0.440 15.79 7,829.2 -27.87 196.7 BARAKAH OFFSHORE PETROLEUM 0.040 14.29 290.9 14.29 40.12 GREEN PACKET BHD 0.040 14.29 1931.1 0.00 79.8 IRIS CORP BHD 0.400 14.29 18703.9 25.00 326.29 PERMAJU INDUSTRIES BHD 0.045 12.50 73 -10.00 87.76 FITTERS DIVERSIFIED BHD 0.050 11.11 312.8 0.00 117.06 VELOCITY CAPITAL PARTNER BHD 0.050 11.11 625 11.11 69.07 PDZ HOLDINGS BHD 0.055 10 6727.2 10 32.36 TRIVE PROPERTY GROUP BHD 0.055 10.00 206.2 -31.25 69.5 VINVEST CAPITAL HOLDINGS BHD 0.055 10.00 1160.3 -8.33 53.3 NOVA MSC BHD 0.115 9.52 1,813.1 4.55 142.5 Data as compiled on Jun 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) BORNEO OIL BHD 0.005 -50.00 26,381.3 -66.67 60.0 KEY ALLIANCE GROUP BHD 0.005 -50.00 470.0 -50.00 18.4 HONG SENG CONSOLIDATED BHD 0.010 -33.33 2,948.4 -60.00 51.1 METRONIC GLOBAL BHD 0.015 -25.00 327.2 0.00 23.0 TFP SOLUTIONS BHD 0.030 -25.00 4,520.8 -45.45 17.5 CHINA OUHUA WINERY HOLDINGS 0.030 -14.29 2,546.8 -45.45 20.0 TA WIN HOLDINGS BHD 0.030 -14.29 1,458.3 -25.00 103.1 XOX NETWORKS BHD 0.030 -14.29 40.0 -14.29 34.07 JADI IMAGING HOLDINGS BHD 0.040 -11.11 372.3 -42.86 55.98 KEY ASIC BHD 0.045 -10.00 4,342.2 -25.00 62.9 TANCO HOLDINGS BHD 0.935 -9.22 22,712.8 58.47 1,954.0 TCS GROUP HOLDINGS BHD 0.150 -9.09 3,069.0 11.11 68.6 ORGABIO HOLDINGS BHD 0.365 -8.75 6,594.6 40.38 90.5 LYC HEALTHCARE BHD 0.110 -8.33 639.7 -45.00 78.6 SENTORIA GROUP BHD 0.055 -8.33 18,351.0 -38.89 33.7 WIDAD GROUP BHD 0.055 -8.33 20,205.9 -88.66 170.3 TECHNODEX BHD 0.060 -7.69 564.0 -25.00 50.6 BTM RESOURCES BHD 0.065 -7.14 1,525.4 -7.14 81.7 MNC WIRELESS BHD 0.130 -7.14 135.0 -7.14 30.9 RADIANT GLOBALTECH LTD 0.340 -6.85 852.9 9.68 178.6 Data as compiled on Jun 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 124.000 -3.700 87.5 5.44 29,078.0 UNITED PLANTATIONS BHD 24.100 -1.040 343.5 37.54 9,996.3 PETRONAS DAGANGAN BHD 18.880 -0.480 1014.6 -13.55 18,756.4 BLD PLANTATION BHD 10.600 -0.380 4.5 -3.64 991.1 PPB GROUP BHD 14.500 -0.300 830.2 0.14 20,627.7 FRASER & NEAVE HOLDINGS BHD 32.280 -0.280 94.2 15.31 11,839.6 ALLIANZ MALAYSIA BHD 21.880 -0.200 31.7 18.66 3,894.0 AJINOMOTO MALAYSIA BHD 15.780 -0.160 181.4 11.71 959.4 HONG LEONG FINANCIAL GROUP 17.160 -0.160 108.4 4.38 19652.4 CHIN HIN GROUP PROPERTY BHD 2.640 -0.140 933.3 216.17 1743.5 D&O GREEN TECHNOLOGIES BHD 3.600 -0.140 1331.9 -0.55 4,458.5 HONG LEONG BANK BHD 19.340 -0.140 445.3 2.33 41,923.7 MALAYAN CEMENT BHD 4.870 -0.140 1259.4 15.13 6,447.3 KESM INDUSTRIES BHD 6.120 -0.130 34.8 -13.44 263.3 SCIENTEX BHD 4.280 -0.120 1248.5 12.34 6639.43 DAYANG ENTERPRISE HOLDINGS 2.530 -0.110 4191.3 58.13 2929.16 CIMB GROUP HOLDINGS BHD 6.89 -0.100 23,218.5 19.06 73,608.5 HEINEKEN MALAYSIA BHD 23.88 -0.100 26.0 -1.08 7,214.1 HONG LEONG INDUSTRIES BHD 11.30 -0.100 47.9 28.70 3,610.0 KUALA LUMPUR KEPONG BHD 21.10 -0.100 1,272.0 -3.30 23,134.2 Data as compiled on Jun 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) DUTCH LADY MILK INDUSTRIES 37.360 0.360 32.9 61.31 2,391.0 MALAYSIAN PACIFIC INDUSTRIES 38.000 0.300 130.1 34.75 7,559.3 APOLLO FOOD HOLDINGS BHD 7.450 0.290 105.7 29.34 596.0 TENAGA NASIONAL BHD 13.260 0.280 11737.0 32.07 76,740.0 HARRISONS HOLDINGS (MALAYSIA) 9.640 0.170 2.7 11.83 660.1 SOUTH MALAYSIA INDUSTRIES BHD 0.610 0.170 5504.6 -3.17 128.1 NEGRI SEMBILAN OIL PALMS BHD 3.900 0.140 3.1 24.60 273.8 WESTPORTS HOLDINGS BHD 4.190 0.130 1700.0 14.79 14,287.9 IJM CORP BHD 2.890 0.120 18742.2 53.72 10,132.8 INARI AMERTRON BHD 3.410 0.110 18906.6 13.29 12,836.0 MALAYSIA AIRPORTS HOLDINGS 10.000 0.100 3368.7 35.87 16,685.5 CCK CONSOLIDATED HOLDINGS 1.550 0.100 6088.9 86.75 962.4 KOTRA INDUSTRIES BHD 4.480 0.100 26.8 -7.25 664.5 SAM ENGINEERING & EQUIPMENT 6.360 0.100 743.6 59.33 4,305.6 GLOBETRONICS TECHNOLOGY BHD 1.330 0.090 13,298.4 -17.31 897.9 BM GREENTECH BHD 1.470 0.080 4,403.1 62.43 758.5 DKSH HOLDINGS MALAYSIA BHD 5.280 0.080 113.7 15.28 832.43 GENETEC TECHNOLOGY BHD 2.350 0.080 5,571.1 -0.42 1,825.1 ABM FUJIYA BHD 0.395 0.075 8.1 6.76 71.10 QL RESOURCES BHD 6.400 0.070 2,545.3 12.08 15,575.4 Data as compiled on Jun 5, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,711.29 140.26 0.36 S&P 500 * 5,291.34 7.94 0.15 NASDAQ 100 * 18,654.84 53.87 0.29 FTSE 100 * 8,232.04 26.44 0.32 AUSTRALIA 7,769.00 31.95 0.41 CHINA 3,065.40 -25.80 -0.83 HONG KONG 18,424.96 -19.15 -0.10 INDIA 74,382.24 2,303.19 3.20 INDONESIA 6,947.67 -151.64 -2.14 JAPAN 38,490.17 -347.29 -0.89 KOREA 2,689.50 27.40 1.03 PHILIPPINES 6,441.32 54.90 0.86 SINGAPORE 3,330.01 -8.93 -0.27 TAIWAN 21,484.88 128.26 0.60 THAILAND 1,338.32 1.00 0.07 VIETNAM 1,284.35 0.83 0.06 Data as compiled on Jun 5, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,906-15.00 OIL US$ 77.870.35 RM/USD 4.6978 RM/SGD 3.4864 RM/AUD 3.1228 RM/GBP 6.0021 RM/EUR 5.1081