The EDGE - 12 October 2023

CEOMorningBrief THURSDAY, OCTOBER 12, 2023 ISSUE 651/2023 theedgemalaysia.com EMERGING-MARKET STOCKS SINK TO LOWEST SINCE 1987 RELATIVE TO US EQUITIES p15 HOME: Government Procurement Act, to be tabled in 2Q2024, will address open tender requirements — Ahmad Maslan p5 IHH’s 90%-owned Acibadem eyes further Europe expansion to offset lira devaluation p7 Tropicana seeks to strike out Sunway’s claim for alleged breach of agreement p8 WORLD: India set to restrict sugar exports in threat to global supply p18 Huawei encroaches on Tesla’s turf, pushing China EV maker up 50% p19 Report on Page 4. Parliament passes Fiscal Responsibility Bill that caps govt debt, guarantees and deficit SHAHRIN YAHYA/THE EDGE Report on Page 4. PM: RM1.3 bil in personal loans backed by EPF Acc 2 approved as of October

THURSDAY OCTOBER 12, 2023 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the 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] Budget 2024: What is known so far KUALA LUMPUR (Oct 11): Prime Minister Datuk Seri Anwar Ibrahim is set to unveil the national budget this Friday, which he has said will provide further clarity on the government’s proposed targeted subsidies, taxation and strategies to increase the government’s revenue. Expectations are high for Budget 2024, given the government’s ambitious growth targets of 5-5.5% for 2023-2025 and its fiscal deficit projections 3.0-3.5% under the 12th Malaysia Plan mid-term review, according to UOB Malaysia’s senior economist Julia Goh. “Even more so, given that the development expenditure ceiling was raised to indicate at least RM90 billion per year in 2023-2025. [So] the focus will be on the areas of allocation for the funds. We expect the government to present a pro-growth and green budget, with a narrower fiscal deficit target of 4.2% of GDP (versus estimated 4.9% for 2023),” she told The Edge. While subsidy rationalisation is going to be the top focus, the upcoming budget is also seen as one that offers the government a good opportunity to undertake reforms, in view of the country’s fiscal constraints and the challenging global environment. And it will likely be a record-sized budget, with the lowest fiscal deficit since 2019 and a higher development expenditure allocation, based on 12MP MTR figures and assuming no significant deviation in Budget 2023 numbers. Here is a recap of what the government has said or hinted at so far about Budget 2024: Targeted subsidies, more coordination of efforts to help the poor Economy Minister Rafizi Ramli has said the government will unveil a ‘concrete move’ away from the blanket subsidy system to a targeted one, which could result in savings of about US$1 billion (RM4.73 billion) to US$2 billion a year, to reduce the nation’s fiscal deficit. HOME BY SYAFIQAH SALIM theedgemalaysia.com Scan here for our coverage on the upcoming national budget Budget 2024: Where we’re at, and what to expect And the government is looking to implement this targeted subsidy programme as soon as the second quarter of 2024, following the electricity tariff adjustments made earlier this year that resulted in a more targeted provision of power subsidy to households, in particular low-voltage users, while subsidies to large businesses and high-voltage-use households were cut. While attention on the rationalisation has so far been on fuel subsidies, Anwar has also hinted that the exercise may widen to other areas, to ensure subsidies only go to those who truly need them. “We have to study it; if we want to continue with subsidies, there is no need to give to the 10% (high-income group). For example, hospital charges are low, even free in some cases, but we give (this benefit) to all. Is it wrong to impose higher payments on the richest group?” he was quoted as saying earlier this month during a visit to Ipoh. Besides subsidy rationalisation, the government plans to coordinate all forms of assistance to the hardcore poor to ensure there is no overlapping of recipients, Anwar said last week, as the government needs to manage its funds more efficiently and responsibly so that every allocation achieves its intention to help the poor. The measure will involve several institutions and aid programmes, among them Amanah Ikhtiar Malaysia (AIM), zakat institutions throughout the country, as well as People’s Income Initiative (IPR). “I want to ensure AIM, zakat institutions and IPR are coordinated so that we know the actual number of recipients and there is no overlap in people receiving assistance,” he was quoted as saying in news reports. At the same time, Anwar has promised bigger and better programmes to alleviate hardship and pressure on people’s daily lives, and one of these programmes will see AIM — a private trust that serves as a microfinance institution (MFI) to provide financing to poor and low-income households in Malaysia — play a role in raising the living standards of the poor. Read the full story Read also: Anwar set to continue fiscal tightening in Budget 2024

THURSDAY OCTOBER 12, 2023 3 THEEDGE CEO MORNING BRIEF is your company one of them? honouring Malaysia’s outstanding corporate performers TM Main Sponsor Official Car Supporting Sponsor

THURSDAY OCTOBER 12, 2023 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): The Dewan Rakyat has passed the Public Finance and Fiscal Responsibility Bill, which entails a timeline of up to five years to meet several fiscal targets including a ceiling on federal government debt and guarantees, fiscal deficits and a floor on development expenditure. The Bill was passed via a voice vote after a total of 18 members of Parliament debated it during the second reading of the Bill, which was tabled by Deputy Finance Minister I Datuk Seri Ahmad Maslan [BN-Pontian]. The Bill sets a number of targets including development expenditure of not less than 3% of gross domestic product (GDP), fiscal deficit to GDP of 3% or less, federal government debt to GDP of 60% or less, and government guarantee to GDP of 25% or less. Touching on the high government guarantee ceiling — totalling 17.8% of GDP last year — Ahmad said the gap will provide room for the government to ensure the delivery of large scale infrastructure projects in the future. The debate also saw questions raised on situations that warrant the government undertaking temporary divergence from the targets in abnormal situations such as a pandemic. Ahmad said that if such a situation occurs early within the five-year time frame, there will be no need for divergence if the government is confident of meeting the targets in the medium term. Under Section 26 of the Bill, to diverge from the targets, the finance minister must conduct a study on the significance of the impact of the situation, after which the assessment needs to be tabled to the Cabinet. The minister must then table a fiscal adjustment plan to the Cabinet for approval, containing the reason for the divergence and the quantum involved, as well as steps to realign and the subsequent targets, and the timeline involved. Parliament passes fiscal responsibility law that caps govt debt, guarantees and deficit, with floor on development spending KUALA LUMPUR (Oct 11): The personal loan programme, which utilises Employees Provident Fund (EPF) contributors’ Account 2 as collateral, saw 64,619 approved applications involving some RM1.29 billion as of Oct 2. The initiative, dubbed the Account 2 Support Facility Programme (FSA2), is available through Malaysia Building Society Bhd (MBSB) and Bank Simpanan Nasional since application was opened on April 7. Under the programme, eligible EPF contributors aged 40 and above can apply for between RM3,000 and RM50,000 in personal loans, with collateral tied to early withdrawal option from EPF’s Account 2 by age 50 or 55. Out of the approved applications, 46,805 (72%) were made by males and 17,814 (28%) by females, Minister of Finance Datuk Seri Anwar Ibrahim said in a Dewan Rakyat reply. By age group, 45,165 (65.3%) were aged between 40 and 45, with loans amounting to RM854.9 million. Another 18,490 (28.6%) were aged between 46 and 50 (RM397.7 million), while those aged 51 and above totalled 3,964 (6.1%) with loans amounting to RM40.5 million successfully disbursed. By ethnicity, Malays made the most number of applications at 34,013 (53%) with RM639.6 million, followed by the Chinese (14,063 or 22% with RM345.7 million) and Indians (7,627 or 12% with RM143.2 million). By state, the distribution is led by Selangor (21,744 or 33.6% with RM467.6 million), followed by Kuala Lumpur (8,082 or 12.5% with RM182.5 million) and Johor (6,873 or 10.6% with RM127.8 million). RM1.3 bil in personal loans backed by EPF Account 2 approved as of October, says PM BY ADAM AZIZ theedgemalaysia.com BY ADAM AZIZ theedgemalaysia.com Read also: Economist raises concerns over Fiscal Responsibility Act, high govt guarantee ceiling, lack of debt service charge cap Would the RM2 bil govt guarantee given to LTAT recently have been different with Fiscal Responsibility Act, asks MP As stated in the Bill, after Cabinet approval, the plan must then be tabled to the Dewan Rakyat for another approval. Malaysia’s annual development expenditure has averaged 4% of GDP since 2015. Fiscal deficit to GDP is estimated at 5% for 2023. Government debt, meanwhile, stood at 60.4% of GDP in 2022, and government guarantees at 17.8%. Questions were also raised about the composition of a fiscal policy committee responsible for proposing recommendations to the Cabinet on government fiscal policy matters, as the committee, which comprises several ministers and secretary generals of the respective ministries, Bank Negara Malaysia governor, and a maximum of two appointees, does not make the appointment of opposition MPs compulsory. The Bill also lacks details on the appointment methods of a separate small committee “to analyse the fiscal risk, and risk of debt and other liabilities to the government”, other than it can be appointed by the fiscal policy committee. To this, Ahmad said the Finance Ministry accepts the recommendations, and said such matters could be addressed in future amendments. What does the Public Finance and Fiscal Responsibility Bill mean Targets Development expenditure not less to GDP than 3% Fiscal deficit to GDP 3% or less Federal government debt to GDP 60% or less Government guarantee to GDP 25% or less

THURSDAY OCTOBER 12, 2023 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): Gradually raising petrol prices to align with market rates and utilising the resulting increased petroleum revenue to assist lower-income groups would be a more beneficial approach for the government, instead of implementing its planned targeted subsidy system, advises Pankajkumar Bipinchandra, who is managing director of Datametrics Research and Information Centre. “To me, why bother going to a different system (of targeted subsidies for petrol) altogether; it’s not proven; it takes a lot of effort; there will be leakages. You probably have to spend a bit more in terms of administration,” Pankajkumar said at the “MARC360: Pre-Budget 2024 Views Series 2: Malaysia’s Long Story of Fiscal Consolidation” webinar on Wednesday. “There will always be people trying to find ways to either abuse or beat the system; I think the best is to go back to the (petrol price) level that we see in other countries. “All this mechanism to implement a targeted subsidy is not the answer; to me, the answer is the gradual increase in petrol prices, and by reducing the subsidy element coming from petrol subsidy, the government can use that to provide direct cash transfers to the bottom 50% (earners) of society,” he added. Pankajkumar stressed that Malaysia has the ninth lowest petrol price in the world at RM2.05 per litre for RON95, versus the average petrol price across Asean of over RM5 per litre. “Why is Malaysia so special; why is Malaysia not able to remove the subsidy or even tax them? If you look at a lot of countries, fuel is sold with a tax — a sales, value-added or petroleum tax element. “So to me, the right way to address this is to come out with a strategy to raise prices, not back to market price, but to derive tax revenue out of it,” he said. Specifically, Pankajkumar suggested that the government raise petrol prices by 20 sen per litre on a quarterly basis for a period of two years, and thereafter impose a RM1 tax on each litre sold. “If you were to tax at RM1 per litre, petrol in Malaysia would be around RM4.50 per litre, and the government would generate RM25 billion in revenue, not to mention it saves RM45 billion in terms of subsidies. “That’s your answer in terms of tackling your budget deficit. Imagine the amount of savings that you can make by putting petrol price back to what it should be (closer in line with market price),” he said. The savings or petrol sales tax collection revenue can then be used to provide cash assistance directly to the lower income group, up to even the bottom 60% of earners in Malaysia, according to the economist. “Prime Minister Datuk Seri Anwar Ibrahim mentioned that Malaysia is expected to spend RM81 billion for subsidies this year; last year’s figure was RM62 billion — of which RM45 billion was related to fuel subsidy,” he noted. He also mentioned that the more the government provides subsidies to the rakyat (people), the less likely the rakyat are willing to be subject to taxes. Meanwhile, MARC chief economist Ray Choy underlined that Malaysia’s subsidies bill constituted 23% of the federal government’s operating expenditure in 2022, versus an average of 10% over the previous five years, and 3.8% compared to the gross domestic product (GDP) in 2022, versus a historical five-year average of 1.6%. Economist recommends gradual increase in petrol prices to support lower-income groups, instead of different subsidy system KUALA LUMPUR (Oct 11): The government intends to table the Government Procurement Act (GPA) in the second quarter next year, addressing tender processes for public procurements, said Deputy Finance Minister I Datuk Seri Ahmad Maslan. Therefore, there is no need to make open tendering mandatory in the Public Finance and Fiscal Responsibility Bill, he explained, addressing the proposal raised by former finance minister Lim Guan Eng [PH-Bagan] to make open tendering mandatory in the Bill. Earlier during a debate session, Lim proposed that the government make open tendering mandatory in the Public Finance and Fiscal Responsibility Bill to prevent hindrances to the government’s efforts in achieving fiscal responsibility. He also recommended that the government publicise details of guarantee letters and support letters while making it mandatory for companies that receive these endorsements to provide periodic financial statements to the august house. This will ensure that the financial performance of these companies is known to the public, Lim said. “With this Bill, we can prevent another 1MDB or Jana Wibawa from happening again,” he added. Lim also expressed concern about the Bill’s requirement for the fiscal deficit to GDP to be less than or equal to 3%. If the fiscal objective is not achieved, it will be used as a measure by rating agencies, potentially affecting Malaysia’s credit outlook. Government Procurement Act, to be tabled in 2Q2024, will address open tender requirements — Ahmad Maslan “What will happen if we need to engage in deficit spending? I hope there is some flexibility during urgent situations,” Lim added. Meanwhile, Radzi Jidin [PN-Putrajaya] also raised concern about the ‘temporary deviation’ if the government fails to achieve its fiscal objective. The Bill states that the government may temporarily deviate from its fiscal objectives, and the finance minister shall present the fiscal adjustment plan to Dewan Rakyat for approval, upon green light by the Cabinet. “But what will happen if Dewan Rakyat rejects the fiscal adjustment plan? What are the implications, and could it affect the budget for the respective year? We do not want a government shutdown, such as those that have occurred in other countries, to happen to us,” Radzi stated. In response, Ahmad Maslan said such a situation could be resolved by Dewan Rakyat quickly, as early as two weeks with a special sitting. “We could expedite the process,” he said. Read also: Ahmad Maslan: Govt mulls Bursa regulatory subsidiary to improve corporate governance structure BY CHOY NYEN YIAU & ADAM AZIZ theedgemalaysia.com BY LEE MING HUI & IZZUL IKRAM theedgemalaysia.com

THURSDAY OCTOBER 12, 2023 6 THEEDGE CEO MORNING BRIEF H O N O U R I N G M A L AY S I A’ S B E S T P E R F O R M E R S I N ESG EXCELLENCE Knowledge Partner (Funds Category) Main Partner Auditor Official Broadcast Partner Automotive Partner In Collaboration With

THURSDAY OCTOBER 12, 2023 7 THEEDGE CEO MORNING BRIEF HOME DRB-Hicom formalises partnership with Geely for Automotive HighTechnology Valley ISTANBUL (Oct 11): IHH Healthcare Bhd’s 90%-owned Acibadem Saglik Yatirimlari Holding AS is ramping up efforts to expand its presence in Europe and to attract more international patients in a bid to maintain profitability amid the severe devaluation of the Turkish lira from hyperinflation. Acibadem’s founder and chairman Mehmet Ali Aydinlar said although the group had mainly relied on organic growth in the past, management will “pay attention to profitable acquisition [targets]. We cannot acquire loss-making companies and turn it around.” “We are not going to make small investments; we are going to make mid-to-large scale investments. We have many opportunities, we are evaluating them, trying to know which one is the best,” he told a group of analysts and reporters during a briefing here. “Unfortunately, in recent years, there has been a devaluation in the Turkish lira. Our investments in Europe are actually our insurance. All these European assets, this is what protected us from the devaluation. “We have a very successful operation in Amsterdam, Netherlands. Now, Rotterdam is the second largest city after Amsterdam. We are starting construction of a new hospital building in Rotterdam. We are planning to complete it within a year.” IHH’s 90%-owned Acibadem eyes further Europe expansion to offset lira devaluation ly after the conclusion of local elections in March next year. For the second quarter ended June 30, 2023 (2QFY2023), IHH’s net profit slumped 50.7% to RM301.83 million from RM612.10 million a year ago as earnings were impacted by foreign exchange losses following the Turkish lira’s devaluation. However, revenue for the quarter was higher, expanding 6.9% to RM4.67 billion from RM4.37 billion, as the group saw more patients across its markets. Net profit for the first half (1HFY2023) grew 53.1% to RM1.69 billion from RM1.10 billion in the previous corresponding period, thanks to a one-off gain from the sale of IMU Health Sdn Bhd which was completed in March. Revenue increased 14.99% to RM9.82 billion for 1HFY2023 from RM8.54 billion previously, mainly on patient volume growth. Türkiye and Europe collectively were the second largest revenue contributor to IHH for 1HFY2023, bringing in RM2.48 billion, up 21% from RM2.05 billion in the previous corresponding period. Singapore was the largest revenue driver for the healthcare group, providing RM2.67 billion, up 12% from RM2.38 billion in 1HFY2022. BY CHESTER TAY theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com KUALA LUMPUR (Oct 11): DRB-Hicom Bhd has inked a master collaboration agreement with Chinese automaker Zhejiang Geely Holding Group Co Ltd (Geely Holding) for the development of the Automotive High-Technology Valley (AHTV) project in Tanjung Malim, Perak. Under the agreement, both parties agree to promote cooperation in new energy vehicles, plan the construction of the auto components industrial park, and promote the development of the new automotive industry, DRB-Hicom said in a Bursa Malaysia filing on Wednesday. In April 2022, DRB-Hicom and Geely Holding signed a memorandum of understanding (MOU) to develop a vehicle hub and have been in talks about it. The MOU, which would have expired after six months without a definitive agreement, was later extended, as stated in bourse filings by DRB-Hicom in October 2022 and January this year. Most recently, in April this year, both parties announced the signing of a heads of agreement for the project during the Malaysia-China Business Forum in Beijing. The AHTV will cover an extensive automotive and mobility solutions value chain, from a fully-fledged high technology global research and development centre to a manufacturing cluster, supporting services, and associated ecosystem. The AHTV is expected to attract some RM32 billion worth of investments, along with direct and indirect benefits to Proton’s plan to fully relocate its manufacturing facilities to Tanjong Malim by 2026. Proton, in which Geely owns a 49.9% stake while DRB-Hicom holds the remainder 50.1%, currently produces five models in AHTV and another two models in Shah Alam, Selangor. Meanwhile in July, Prime Minister Datuk Seri Anwar Ibrahim said Geely Holding would invest US$10 billion (RM47.3 billion) to turn Tanjung Malim into the region’s largest auto city, marking one of the largest foreign direct investments the government announced in 2023. This development followed Amazon’s US$6 billion commitment (over 14 years till 2037) to strengthen its cloud services infrastructure, which was announced in March, and US-based semiconductor company Texas Instruments’ plan to inject RM14.6 billion to expand its operations in Kuala Lumpur and Melaka, which was announced June. DRB-Hicom shares inched up one sen or 0.71% to RM1.42 at Wednesday’s noon break, giving it a market capitalisation of RM2.75 billion. Read also: Thai PM: Proton-Geely JV eyes electric vehicle factory in Thailand DRB-Hicom Bhd group chief operating officer, Properties, Corporate Planning and Strategy, Azri Zaharuddin (left, front) and Zhejiang Geely Holding Group Co Ltd senior vice-president and chief operating officer Dr Wei Mei (right, front) at the signing of the master collaboration agreement by the two companies. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (third from left, back) and Prime Minister Datuk Seri Anwar Ibrahim (fifth from left, back) are also present. Currently, there are 25 hospitals under Acibadem, 19 of them within Türkiye and the rest in four other European countries: Netherlands, Bulgaria, Serbia and North Macedonia. Aydinlar observed that 2023 was not a good year for Türkiye operations, pointing to the February earthquake that affected more than 10 provinces in the country. In addition, the recently concluded presidential and parliamentary elections have weighed on Acibadem’s business volume. He expects the country’s economic conditions to improve going forward, especial-

THURSDAY OCTOBER 12, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): TSR Capital Bhd has bagged a RM104 million contract — nearly double its market value of RM56 million — involving infrastructure works at the Kwasa Damansara township development in Sungai Buloh, Selangor. In a bourse filing on Wednesday, TSR Capital said its wholly-owned subsidiary TSR Bina Sdn Bhd accepted the letter of award issued by Kwasa Land Sdn Bhd on Wednesday. The scope of works under the contract mainly involves the execution and completion of site clearance and demolition, earthworks, drainage, road, sewerage, water reticulation, and mechanical and electrical infrastructure works. The contract is for a duration of 30 months and is expected to be completed by April 2026. TSR Capital expects the contract to contribute positively to its earnings for the financial years ending June 30, 2024 (FY2024) until FY2026. TSR Capital shares price closed unchanged at 32 sen, translating into a market capitalisation of RM56 million. Year-todate, the stock has surged 60%. TSR secures RM104 mil infrastructure contract KUALA LUMPUR (Oct 11): Tropicana Corp Bhd is seeking to strike out the claim filed by RHB Trustees Bhd, Sunway REIT Management Sdn Bhd and Sunway Education Group Sdn Bhd over its alleged breach of agreement and double-dealing over the sale of shares and a stake in St Joseph International School. In a statement on Wednesday, the property developer said the claim discloses no reasonable cause of action, is scandalous, frivolous and vexatious, and amounts to an abuse of court process. “In addition, Tropicana counterclaims against Sunway on grounds that Sunway’s claim [was] filed with ulterior motives and for a collateral purpose to impede, frustrate and interfere with Tropicana’s dealings with its properties and businesses, and further, to injure its good name and business reputation. “Tropicana contends that Sunway’s claim is baseless as the ‘subject to contract’ letter of offer between the relevant parties was never intended to be legally binding, as evidenced by the expressed provisions therein. “The letter of offer merely provided for negotiations within specified time periods including an agreed time period for due diligence review wherein Sunway has failed to conduct themselves within such specified periods. Tropicana did not receive any deposit from Sunway,” it said. Meanwhile, the group also denied allegations of delays and obstructions to the completion of the due diligence review. Tropicana also stressed that it has provided extensive and sufficient information to Sunway for the purpose of the review. “Additionally, Sunway has attempted to rewrite its position by seeking a reduction in the agreed purchase price, which is a clear deviation from the salient terms of the letter of offer. “As the letter of offer was not binding and not enforceable and was legally and properly aborted, Tropicana denies the alleged breach of contract on its part and Tropicana seeks to strike out Sunway’s claim for alleged breach of agreement BY SULHI KHALID theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com furthermore, denies the so-called ‘conduct agreement’ which is non-existent and nothing more than a baseless tactic to bolster Sunway’s claim. “Parties to the letter of offer have never agreed to deal on an exclusive basis and in any event, Tropicana is free to deal with its properties after the proposed transaction was aborted,” it said. On Tuesday, it was reported that Sunway had sued Tropicana over the St Joseph International School deal. Sunway claimed that Tropicana had offered to sell Tropicana Education Management Sdn Bhd (TEM), the operator of the school, and a portion of Tropicana shares for an aggregate price of RM208 million in a letter to Sunway dated April 20, 2023. The letter contains provisions — called conduct provisions — for the purchase of the said property, that it was subsequently agreed between Tropicana Corporation and Sunway that Sunway REIT would own the education institution and Sunway Education Group would own the shares. Following the understanding, Sunway agreed to pay a refundable deposit of RM4.16 million to Messrs Mah-Kamariyah & Philip Koh on May 2, where it was agreed that upon payment, Sunway is allowed to carry out a due diligence review of the property and TEM within one month from the date (May 2). Sunway claimed that the due diligence period ought to be given a commercially sensible construction. After the payment of the refundable deposit, a conduct agreement was drawn up, comprising terms, conditions and/or obligations that included Tropicana and TEM as vendors during the due diligence review, and that they comply with the time and obligations. A termination clause was also inserted in the agreement. The plaintiffs claim to have suffered loss and damages including wasted expenses to comply with the conduct agreement, legal costs due to the agreements made and loss of business opportunity to enjoy from the purchase of the property and shares. They are seeking declaratory relief that the vendors committed breaches of the conduct agreement, that the due diligence review period be suspended or stayed owing to the vendors’ actions, that the due diligence period be varied, and that the deemed aborted clause is subject to the vendors’ compliance and obligation to provide more information to the plaintiffs. They are also seeking that the invocation of the deemed aborted clause be declared wrongful, invalid, void and of no effect, and for an order to preserve the status quo of the subject properties. In addition, they are also seeking special and general damages from the defendants for the wasted expenditure incurred by them. Tropicana closed one sen or 0.84% lower at RM1.18, giving it a market capitalisation of RM2.71 billion.

THURSDAY OCTOBER 12, 2023 9 THEEDGE CEO MORNING BRIEF PRESENTS REAL ESTATE MATTERS Official Solar Partner Supported By

THURSDAY OCTOBER 12, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): Jewellery and consumer products maker Zhulian Corp Bhd reported its third consecutive quarter of net profit decline on Wednesday, mainly due to lower results from its operating activities, and a lower share of profit from its equity-accounted associates. It posted a net profit of RM6.2 million for its third quarter ended Aug 31, 2023, down 14.36% from RM7.24 million in the previous year’s corresponding quarter, as revenue came in at RM34.2 million, compared with RM32.96 million previously. Earnings per share dipped to 1.35 sen from 1.57 sen, its bourse filing showed. The group declared a third interim dividend of three sen per share, to be paid on Dec 6, raising yearto-date (YTD) dividends for FY2023 to nine sen — same as the YTD period in FY2022. For the nine months ended Aug 31, 2023, Zhulian’s net profit dropped 43.75% to RM22.49 million from RM39.98 million, mainly because the previous year’s corresponding period had recorded a net gain of RM14.4 million from its disposal of a leasehold plot in Indonesia, and lower share of profit from its associate. Cumulative revenue, meanwhile, slipped 3.6% to RM100.17 million from RM103.92 million, amid weaker consumer spending. As the group’s business is closely linked to general consumer spending and the fluctuating foreign currency exchange, the group said that the ringgit’s rally against the US dollar would have an impact on its performance and export revenue, which is in US dollars. Nonetheless, the group said it would ensure the sustainability of its business by adapting to constant market demand changes, while remaining cautious on mounting inflationary pressures. “The group is committed to managing its resources prudently and continuously improving its business operational efficiency,” it added. Zhulian shares closed unchanged at RM1.87 on Wednesday, giving the group a market capitalisation of RM860.2 million. Zhulian’s 3Q net profit down 14% in third consecutive decline, declares three sen dividend KUALA LUMPUR (Oct 11): Straits Energy Resources Bhd has bagged a contract worth RM27.7 million for the installation, testing and commissioning aluminium XLPE underground cables and accessories for asset development for Tenaga Nasional Bhd (TNB). In a Bursa Malaysia filing on Wednesday (Oct 11), the marine fuel supplier said its 70% indirect subsidiary Straits CommNet Solutions Sdn Bhd (SCS) accepted a letter of award (LOA) from Tianu Sdn Bhd on Tuesday. Tianu was awarded this project by TNB and as the main contractor, has joined forces via a smart partnership with SCS to deliver the project. “This strategic collaboration represents a fusion of Tianu’s extensive experience in cable technology and SCS’s proficiency in network solutions,” the filing read. Tianu is principally involved in mechanKUALA LUMPUR (Oct 11): Bumi Armada Bhd’s wholly owned unit Bumi Armada Holdings Labuan Ltd (BAHLL) has secured a syndicated term loan facility of US$105.5 million. The loan has a final maturity date of Sept 25, 2028, Bumi Armada said in a bourse filing on Wednesday. It will be used to refinance Tranche 2 of the group’s existing US$660 million facility, which matures in May next year. “We are pleased that we repaid a significant amount of the existing facility over recent years. We are equally delighted to have secured the new term loan facility, which demonstrates continuing strong support from our financiers,” said Bumi Armada chief executive officer Gary Christenson. In April 2019, the offshore energy facilities and services provider said it had taken steps to refinance its short term loans of US$380 million and revolving credit facilities of US$280 million into a single facility with two tranches. The facility consists of Tranche 1 of US$260 million, which matured on Nov 23, 2022, while Tranche 2 of US$400 million matured in May 2024. As of June 30, Bumi Armada’s short-term borrowings stood at RM1.41 billion, while long-term borrowings were RM3.41 billion. At Wednesday’s noon break, Bumi Armada’s share price slipped half a sen or 0.91% at 54.5 sen. At the current price, the group was valued at RM3.23 billion. ical and electrical services construction and general services, and supply and services of security tools and protection control, fire prevention system and control tools, electrical engineering and electronics, ICT telecommunication, furniture and fittings. Meanwhile, SCS is principally involved in designing, developing, researching and handling all types of telecommunication products, and provides a broad range of network development services. Strait Energy said the contract period is one year, with an option to extend for another one year. It should be noted that SCS shall prepare a performance bond for the sum of RM1.49 million within 28 days from the date of LOA. The performance bond shall be valid and enforceable until 12 months after the expiry of the contract period. The LOA is expected to contribute positively towards Strait Energy’s future earnings, earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2023 (FY2023) and the financial years thereafter for the duration of the LOA. At 4pm, shares of Strait Energy (formerly known as Straits Inter Logistics Bhd) were up one sen or 8.7% at 12.5 sen, giving the group a market capitalisation of RM113.06 million. Year-to-date, the stock has gained 9%. Straits Energy bags RM28 mil underground cables job Bumi Armada’s unit secures US$105.5 mil term loan facility BY LUQMAN AMIN theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com BY ANIS HAZIM theedgemalaysia.com BUMIARMADA.COM

THURSDAY OCTOBER 12, 2023 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): Malaysian palm oil stocks are expected to remain above the two-million-tonne mark until the end of this year, even when demand is expected to pick up towards the end of the year, as the sector undergoes a peak output season. As such, analysts covering the industry are maintaining their “neutral” stance on the plantation sector at the moment. The Bursa Malaysia Plantations Index had fallen 4.7% since its year-to-date peak of 7,212.17 on July 26, to Tuesday’s 6,873.64 points. RHB Investment Bank Bhd in a note on Wednesday said while a pick-up in demand is anticipated due to the upcoming festive seasons, higher competition and the peak output season mean that palm oil stocks would still exceed the two-million-tonne mark, potentially until the end of the year. “The stock/usage (S/U) ratio is now at 12%, above the 15-year historical average of 10%,” RHB wrote in the note. Malaysian Palm Oil Board (MPOB) data showed that palm oil stocks exceeded two million tonnes for the second consecutive month in September. Palm oil stocks rose 9.6% month-on-month (m-o-m) to 2.31 million tonnes in September, the highest level since October 2022 (2.41 million tonnes), due to lower exports and a seasonally higher cropping pattern. Crude palm oil production (CPO) rose 4.3% m-o-m in September to 1.83 million tonnes, while exports decreased by 2.1% m-o-m to 1.2 million tonnes. The production level was the highest over the past two years, surpassing the previous peak of 1.81 million tonnes in October 2022. According to MIDF Research, overall palm oil performance in September continued to be supported by improved plantation activities with increased foreign labour on the ground, especially in Peninsular Malaysia, aided by favorable weather conditions. “Since labour scarcity has steadily decreased, especially in the eastern side area, we think that the Malaysian palm oil stocks will continue to recover to pre-pandemic Malaysia’s palm oil stocks seen remaining above two million tonnes till end of the year KUALA LUMPUR (Oct 11): APB Resources Bhd has proposed to acquire a 16-storey Serba Dinamik building in Shah Alam, Selangor for RM38 million, subject to the approval from the High Court. In a Bursa Malaysia filing on Wednesday, the group said it has received a letter from the liquidator of troubled oil and gas (O&G) company, Serba Dinamik Group Bhd in respect of the liquidator’s application for directions on the sale on the leasehold land in Section 14, Shah Alam together with the office building. “The proposed acquisition will enable APB Resources to utilise the said property for its own purposes and generate income through renting it out,” said the group which is involved in the fabrication of specialised design process equipment for the O&G, power as well as food and beverages industries. Meanwhile, the group highlighted the proposed acquisition will be financed through an internally generated fund. It also highlighted that the proposed acquisition is expected to be completed before Nov 30, 2023. Shares in APB Resources ended four sen or 1.83% higher to RM2.22, giving it a market capitalisation of RM250.58 million. Since the beginning of the year, the stock has soared by 48%. APB Resources to acquire Serba Dinamik office building in Shah Alam for RM38 mil BY SULHI KHALID theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com THE EDGE levels as a result of the better estates activity,” it said. Hong Leong Investment Bank (HLIB) Research, on the other hand, expects stockpiles to remain flat in October as seasonally higher cropping patterns are expected to be offset by potentially stronger near-term demand for palm oil. This, the research firm said, is due to palm oil’s improved price competitiveness against fossil fuels, which should boost demand for biofuel if the price spreads between the two remain. El Nino might not boost CPO price, as demand outlook remains fragile Although the El Nino phenomenon could be a potential catalyst for CPO prices to hit the RM4,200-per-tonne mark in the remaining months, there are concerns that demand could remain fragile due to inflationary pressures brought by high local and global interest rates. “Furthermore, year-to-date palm oil closing stocks in major importing countries has reached pre-pandemic levels, such as India (4.2 million tonnes) China (5.7 million tonnes), Pakistan (2.7 million tonnes) and Bangladesh (one million tonnes). “Hence, we anticipate demand would be sluggish in the remainder of the second half (2H2023),” said MIDF Research. MIDF maintained its full-year CPO price forecast at RM3,800 per tonne. Similarly, RHB kept its CPO projection at RM3,900 per tonne for 2023 and 2024. Noting that CPO price averaged at RM3,880 per tonne year-to-date, HLIB said it is in the midst of reviewing its 2024 forecast to RM4,000 per tonne. “We believe seasonally higher cropping patterns for palm, high vegetable stock levels among key consuming countries, and weak near-term demand sentiment will suppress near-term CPO price movement,” it added. CPO price performance since January 2021 Source: Bloomberg Jan 4, 2021 Oct 11, 2023 RM3,526 RM/tonne 2000 4000 6000 8000 RM3,871

THURSDAY OCTOBER 12, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): Abu Dhabi Future Energy Company PJSC (Masdar), the United Arab Emirates’ (UAE) clean energy powerhouse, is set to invest US$8 billion for up to 10 gigawatts (GW) of renewable energy (RE) projects in Malaysia. According to the Malaysian Investment Development Authority (Mida), the company had signed a memorandum of understanding (MOU) with Mida, forming a strategic partnership and marking an important milestone in the pursuit of a sustainable and greener future for Malaysia. In a statement, Mida said it would facilitate Masdar to develop the RE projects, which include ground-mounted, rooftop and floating solar power plants, onshore wind farms, and battery energy storage systems. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the UAE — through Masdar — has set a commendable example in its national pursuit of sustainability, with its recognised leadership in clean energy, low-carbon and nature-based solutions. “This Mida-Masdar collaboration is perfectly aligned with the objectives of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap (NETR) in achieving sustainability and energy security for Malaysia’s industrial transformation,” he said. Mida chief executive officer (CEO) Datuk Wira Arham Abdul Rahman said the partnership underscores its commitment to driving positive change and embracing a greener, more sustainable future. “Mida has proactively and enthusiastically engaged with industry partners in the country, to foster innovation and cultivate solutions that are aimed at reducing carbon emissions,” he said. Meanwhile, Masdar’s CEO Mohamed Jameel Al Ramahi said Masdar is proud to play its part in helping Malaysia achieve its ambitious target of 70% RE installed capacity and net-zero emissions by 2050. “As a global clean energy pioneer with a proven track record in the commercialisation and deployment of renewable and clean energy projects, Masdar is proud to play its part in helping Malaysia achieve its ambitious targets. “We will bring all of our expertise in delivering robust projects that utilise cutting-edge technologies and generate much-needed energy efficiently to advance Malaysia’s RE goals,” he said. Established in 2006, Masdar is active in over 40 countries and has invested, or committed to invest in worldwide projects, with a combined value of more than US$30 billion. UAE clean energy powerhouse Masdar, Mida ink MOU to develop up to 10GW of RE projects KUALA LUMPUR (Oct 11): The Dewan Rakyat has passed the Energy Efficiency and Conservation Bill, which provides for compulsory energy audits of larger commercial and industrial electricity and gas consumers. The Bill, which had been in the works for almost 10 years, was passed for third reading via majority voice vote in the morning session of the Dewan Rakyat. Current energy efficiency regulations cover electricity, and do not require mandatory audits. When enacted, the Energy Efficiency and Conservation Act (EECA) will regulate industrial and commercial users that consume 21,600 gigajoules of energy per annum — equivalent to RM2.4 million in annual electricity bills, or RM1 million in natural gas bills. Compliance is estimated to reduce electricity bills by up to 25%. The EECA is set to cover 1,500 out of 27,000 industrial consumers, representing 70% to 80% of industrial consumption, as well as 500 out of 1.7 million commercial consumers making up 21% of commercial segment consumption. It also requires compliance by office buildings measuring 8,000 sq m and above to meet at least a two-star rating under the National Building Energy Label requiring building energy intensity of at least below 250 kilowatt-hour/sq m per annum. Currently, 300 government buildings comply with the requirements. The EECA will also eventually cover hotels and hospitals after future engagements by the ministry, with an estimated 4,102 buildings to be covered under the law. The EECA will be enforced 12 months after it is gazetted, when then consumers have to conduct the first energy audit. Subsequently, consumers will have a five-year period (one cycle) to meet compliance requirements, and will be levied Dewan Rakyat passes Energy Efficiency and Conservation Bill with a penalty for non-compliance after the second audit. Penalties range from RM20,000 to RM100,000. The average compliance cost — covering the appointment of a registered energy manager, implementation of energy management, and energy audits — for one cycle (five years) stands at RM120,000 a year for affected industrial users, and RM100,000 for commercial users. “Six Asean countries already have energy efficiency regulation,” said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad. “Through this Bill, the government will emphasise demand-side management,” Nik Nazmi (Pakatan Harapan-Setiawangsa) said. “This approach will ensure the government conducts energy supply and generation planning in a more holistic manner, aside from contributing to the national climate change agenda.” The mandatory energy audit can be conducted by any registered energy auditor. The intention is to have the respective industrial and commercial consumers to include energy managers and auditors within their talent pool for future compliance with the Act. The final report on demand-side management was first tabled before the Cabinet in January 2018, before the Bill was mooted for tabling in Parliament in 2020 prior to the change in government. Subsequently, the Covid-19 pandemic resulted in the delays. BY ADAM AZIZ theedgemalaysia.com Bernama ZAHID IZZANI/THE EDGE

THURSDAY OCTOBER 12, 2023 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): Star Media Group Bhd’s group chief executive officer Alex Yeow Wai Siaw will step down after completing his employment contract at the end of February 2024. Yeow, 58, was appointed as group CEO on March 1, 2021. Star Media was under the limelight a few months back over proposed related party transaction deals to sell a piece of land with upcoming factories in Bukit Jelutong, Shah Alam, to Matang Bhd for RM33 million in a share and cash deal. The deal would have seen Matang satisfying RM28.9 million of the purchase consideration via issuance of 357 million new Matang shares at 8.09 sen apiece to Star Media, and result in Star Media having a cross-holding of 13% in Matang. For the remaining purchase consideration, Star Media was to receive a cash payment of RM4.12 million from the plantation group, in which Malaysian Chinese Association (MCA) holds a 16.78% stake. MCA is the largest shareholder in Star Media, holding a direct interest of 43.23% and an indirect interest of 2.6%. However, at an extraordinary general meeting on May 31, Star Media’s minority Star Media CEO Alex Yeow to step down end-Feb 2024 KUALA LUMPUR (Oct 11): CelcomDigi Bhd has partnered with Petroleum Sarawak Berhad (Petros) to provide communication solutions for the onshore well drilling site in the Miri-Marudi area in northern Sarawak. In a statement on Wednesday, the telco group said it had installed a dedicated network setup, including a portable base transceiver station (PBTS) within three weeks to support the need for a cost-effective connectivity solution in the area that previously had limited coverage. “This installation is set to benefit over 100 employees working at the onshore well drilling project site, where they will experience full high-speed connectivity to easily stay connected with their families, friends and colleagues despite being in a remote area,” it said. With a stable network in place, Petros will also be better prepared to manage health, safety and security risks of the project site and its employees, in the unlikely event of an emergency. CelcomDigi chief enterprise business officer Afizulazha Abdullah said the partnership will allow the group to provide high-speed connectivity for those working at the remote project site. “With this new setup, CelcomDigi has laid the groundwork for Petros to later equip this onshore site with innovative technology and customised digital solutions, which may help drive its overall operational efficiencies and performance,” he said. Following the partnership, he said that CelcomDigi is looking forward to continuing working with Petros to unlock more synergies and opportunities in delivering digital experience at both its onshore and offshore sites. At 4.42pm, shares in CelcomDigi were three sen or 0.69% lower at RM4.30, giving it a market capitalisation of RM50.3 billion. CelcomDigi, Petros team up on high-speed connectivity at Sarawak onshore drilling site BY ANIS HAZIM theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com shareholders voted to reject the proposal. In the financial year ended Dec 31, 2022 (FY2022), the media group posted an annual net profit of RM6.92 million, reversing two straight years of losses. Its revenue increased 16% to RM216.96 million, from RM187.11 million in FY2021. It booked an annual net loss of RM132.36 million in FY2021, nearly seven times the net loss of RM19.72 million in FY2020, amid impairment of property, plant and equipment of RM71.6 million and reversal of compensation income of RM50.5 million incurred in FY2021. Its latest financial results for the cumulative six months of FY2023 (1HFY2023) showed net profit fell 55.48% to RM1.93 million, from RM4.33 million a year before, hit by an increase in operating expenses. This was despite a 3% rise in revenue for 1HFY2023 to RM110.0 million, compared to RM106.55 million in 1HFY2022, driven mainly by the launch of the Star Business Hub property development project and also an increase in the cover price of The Star. On Wednesday, Star Media’s share price closed at 43.5 sen after rising 0.5 sen or 1.16%. At 43.5 sen, the company has a market capitalisation of RM321 million. The stock, which had been hovering below 40 sen in the past two years, shot up to a more than three-and-a-half-year high of 61.5 sen in April this year, after media group The Edge Communications Sdn Bhd and its owner Tong Kooi Ong emerged as substantial shareholders of the company. As of Aug 30, Tong indirectly owns a 5.17% stake and directly holds a 0.2% stake in Star Media. Year-to-date, the stock has gained 45%.

THURSDAY OCTOBER 12, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Oct 11): The government has granted approval for an allocation of RM93 million to facilitate land acquisition and infrastructure development for the expansion of the Penang International Airport (PIA), according to Transport Minister Anthony Loke. Loke said that this allocation falls under the framework of Rolling Plan 3 (RP3) of the 12th Malaysia Plan (12MP). It specifically focuses on land acquisition, including compensation payments and the replacement of government quarters, as well as infrastructure development. “The ministry is actively engaged in carrying out the necessary land acquisition activities to support the PIA expansion project,” Loke stated in a written parliamentary reply addressed to Batu Kawan MP Chow Kon Yeow (PH-Batu Kawan). Loke also said that Malaysia Airport Holdings Bhd (MAHB) is currently in the process of evaluating the essential capital and financial resources required for executing the PIA expansion project. “MAHB will determine the project’s cost, secure funding sources, and define the investment mechanisms before presenting them to the government for consideration,” he added. According to Loke, the anticipated project is scheduled to commence in September 2024, with an estimated project duration of 48 months for completion. This expansion aims to increase the terminal’s annual handling capacity from 6.5 million passengers to 12 million passengers annually. In February, during the presentation of the revised Budget 2023, Prime Minister Datuk Seri Anwar Ibrahim announced the government’s intention to upgrade Penang Loke: Govt has approved RM93 mil allocation for Penang Airport expansion BY CHOY NYEN YIAU theedgemalaysia.com KK Airport expansion under consideration Responding to a separate question from Semporna MP Datuk Seri Mohd Shafie Apdal, Loke disclosed that MAHB has longterm plans to expand the Kota Kinabalu International Airport (KKIA) to accommodate an anticipated increase in passenger numbers, from nine to 15.4 million annually. Loke added that the Transport Ministry will initiate the land acquisition process in the airport’s vicinity, with this process being considered under RP5 of the 12MP. Loke also said that the ministry has included the Tawau Airport upgrading project under RP4 of the 12MP for the Ministry of Economy’s consideration. This proposed project involves expanding the terminal capacity from 1.5 million passengers to 2.5 million annually, ensuring that the airport can effectively meet the needs of travellers. However, he said the ministry has no plans to upgrade the Sandakan Airport in near future, considering the existing capacity and recent upgrades. “The Sandakan Airport, designed with a terminal capacity of 1.4 million annually, aligns with MAHB’s projections, suggesting that it will suffice until after 2027,” Loke stated. It’s noteworthy that the project to upgrade the Sandakan Airport was completed in 2022, including the extension of the runway, expansion of the aircraft parking area, relocation of various systems and construction of new infrastructure. KUALA LUMPUR (Oct 11): Hektar Real Estate Investment Trust (REIT) has proposed to undertake a private placement of up to 20% of the total number of issued units of the company to third-party investors to be identified later. In a filing with Bursa Malaysia on Wednesday, Hektar REIT said the indicative issue price of the placement units is assumed to be 53 sen each. Based on the indicative issue price, the proposed private placement is expected to raise gross proceeds of up to RM53.64 million. The utilisation of proceeds of RM52.5 million would be used for future viable investments within 24 months from completion. “The proposed private placement may be implemented subject to the board’s approval, in a single tranche or in multiple tranches, within six months from the date affect the company’s bottom line. It would also increase the size and strength of Hektar REIT’s unitholders’ funds, and raise funds in an expeditious manner, compared to pro-rated issuance such as a rights issue, which requires a longer timeframe. Hektar REIT proposes 20% private placement to raise RM53.6 mil Bernama and Subang airports as part of efforts to attract more international investment and tourists to the country. He said the expansion of the two airports, which is spearheaded by MAHB, is expected to promote economic growth at a cost that is far lower when compared to the proposal to spend RM7 billion on building a new airport in Kulim, Kedah. of approval of Bursa Securities for the listing and quotation of the placement units,” it said. The proposal would enable Hektar REIT to raise additional funds without incurring interest costs as compared to conventional bank borrowings, which may HEKTARREIT.COM Read also: Malaysia’s air passenger traffic up 72% as of Sept 2023, says transport minister

THURSDAY OCTOBER 12, 2023 15 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): Emerging-market stocks just crossed another grim milestone: They’ve tumbled to the lowest level in 36 years relative to US equities. MSCI Inc’s benchmark for developing-nation equities slipped to begin the week as Israel’s retaliation against attacks by Hamas sparked fears of a broader conflict between the US and Iran. That took the gauge, as of Monday’s close, to the weakest-ever level relative to the S&P 500 Index in data going back to 1987. The ratio has since recovered, with the emerging-market benchmark adding 2.3% in the past two days. “Investors need to look beyond the benchmark index given the 30% China Emerging-market stocks sink to lowest since 1987 relative to US equities BY SRINIVASAN SIVABALAN Bloomberg weight, as emerging-market performance ex-China has done much better than the index alone indicates,” said Jitania Kandhari, deputy chief investment officer at Morgan Stanley Investment Management. “Selective countries in EM are doing well.” Broad emerging-market benchmarks have faced several headwinds this year, with the latest selloff in shares since July wiping out US$1.8 trillion (RM8.5 trillion) of shareholder wealth. The MSCI gauge erased all of its 2023 gains last month and is little changed for the year, compared with a 14% rally in the S&P 500. The drop has come as traders bet that higher-for-longer interest rates in the US lead to further dollar strength, keeping pressure on riskier assets. China’s stumbling economy has also been central to recent underperformance, especially as the nation’s companies account for roughly a third of the broad emerging-market gauge. “For the broader EM index to start outperforming, investors need to see concrete actions for a strong recovery from the Chinese administration,” said Ashish Chugh, head of global emerging-market equities at Loomis, Sayles & Co in Boston. The earnings performance and outlook of developing-nation companies has also been deteriorating, leading investors to shun the assets despite cheaper valuations. Consolidated profits at emerging-market companies, based on a trailing 12-month basis, have fallen to the lowest level since May 2021, according to data compiled by Bloomberg. Equity analysts have cut their forecasts for 12-month profits at developing-nation companies by 2.8%, while they have raised the projections for US firms by 4.5%. That leaves outperformance within emerging-market stocks likely to be limited to those that benefit from strong growth dynamics, said Loomis’s Chugh. “India, Indonesia and Brazil are doing very well — both cyclically and structurally — and should continue to deliver strong returns,” he said. “The driver of their performance will continue to be strong earnings growth, as well as a supportive macro environment.” Read also: Higher-for-longer rates worry World Bank over large debt burdens The prospect that high interest rates will keep constricting the global economy is worrying World Bank officials as they look to the impact on nations nursing large debts. IMF sees inflation, growth risks if IsraelHamas war widens The International Monetary Fund’s (IMF) No 2 official says that the war between Israel and Hamas could spur inflation and hamper global growth if it turns into a wider conflict that causes a significant increase in oil prices.

THURSDAY OCTOBER 12, 2023 16 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): Turkish President Recep Tayyip Erdogan criticised the US for sending a group of warships to the eastern Mediterranean in a show of solidarity with Israel. “What is the US aircraft carrier doing in Israel?” Erdogan said in a joint press conference with visiting Austrian Chancellor Karl Nehammer in Ankara, Turkey’s capital. The Turkish leader said the US warships will cause “massacres” in Gaza and accused the US of aiding “terrorist” groups in the region, citing American presence in Syria. Turkey has launched air raids against US-backed Kurdish militants in Syria, holding them responsible for the Oct 1 suicide bombing in Ankara. The US responded by shooting down a Turkish drone. Erdogan’s rebuke of American policies toward Israel and Palestinians follows last Saturday’s surprise attack by Hamas militants on the Jewish state. US and Turkey are both members of the Nato military alliance. Turkey sees establishment of an independent Palestinian state with its capital in east Jerusalem as a necessity for a lasting peace in the Middle East, Erdogan said. He’s been holding phone calls with regional leaders to rein in tensions, last speaking to Russia’s Vladimir Putin on Tuesday evening. Erdogan and Putin discussed “measures to prevent the tension from spreading”, said a readout from the Turkish Presidency. (Oct 11): Israel formed a rare emergency government with a key opposition member on Wednesday to see the country through its war with Hamas. A “war management cabinet” will be established with three members, according to Prime Minister Benjamin Netanyahu’s office. They are Netanyahu, Defense Minister Yoav Gallant and ex-Defense Minister Benny Gantz, who now heads an opposition party. Ron Dermer, who’s strategic affairs minister, and Gadi Eizenkot, a former chief of staff of the Israel Defense Forces, will be observers. During the war period, no bills or government decisions will be promoted that do not concern the conduct of the war. All senior appointments will be automatically extended during the period of conflict. A place in the war cabinet will be reserved for Yair Lapid, who’s head of the opposition and was prime minister until late last year, when Netanyahu succeeded him. The move follows Saturday’s devastating attacks by Hamas, which killed at least 1,200 Israelis and shocked the nation to the core. Gantz has, until now, been a bitter political rival of Netanyahu and especially his plan to weaken the power of the Supreme Court, which triggered mass protests in Israel this year. The ex-general joining the government underscores Israel’s unity ahead of what it’s saying could be a prolonged military campaign. The government is widely expected to move troops into the southern Gaza Strip, where Hamas is based, and has said that the Iran-backed militant group must be completely destroyed. The makeup of the war cabinet means far-right members of Netanyahu’s coalition, including Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben Gvir, will not be part of helming Israel’s military operations. Israel is also facing pressure on its northern border with Lebanon. On Wednesday Israeli forces exchange fire with Hezbollah militants, who, like Hamas, are funded and supported by Iran. Hezbollah has expressed solidarity with Hamas. It is thought to have tens of thousands of missiles and analysts have said it may opt to attack Israel more forcefully, especially if Israeli troops move into Gaza. Soon after the announcement of the emergency government, the central bank said governor Amir Yaron would extend his term, which ends in December, until at least the end of the conflict period. There’s been widespread speculation in Israel that he wants to step down once his five-year term ends, and he’d said he would announce his decision around now. Israel forms emergency govt for war against Hamas BY GALIT ALTSTEIN & ALISA ODENHEIMER Bloomberg Read also: How a secretive Hamas commander masterminded the attack on Israel Israel calls last week’s devastating attack by Hamas its 9/11 moment. The secretive mastermind behind the assault, Palestinian militant Mohammed Deif, calls it Al Aqsa Flood. China envoy backs aid to Gaza, ceasefire with Egyptian official China’s special envoy for the Middle East called for humanitarian support for the Palestinian people in his first public response to Hamas’ attack on Israel — an assault that is testing Beijing’s ambitions to play peacemaker in the region. Yellen sees economic risks from Gaza conflict, says US always looking at sanctions Yellen condemned Saturday’s attacks on Israel and pledged Washington’s strong support for Israel “in any way that’s necessary.” Turkish President Recep Tayyip Erdogan said the US warships will cause “massacres” in Gaza and accused the US of aiding “terrorist” groups Erdogan says US in the region, citing American presence in Syria. warships will cause ‘massacres’ in Gaza BY FIRAT KOZOK & BERIL AKMAN Bloomberg BLOOMBERG

THURSDAY OCTOBER 12, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): A rare mid-year revision to China’s budget to juice the recovery with more stimulus would signal that top leaders are moving away from a growth model that is piling ever more debt on local governments. That’s the verdict among economists after people familiar with the matter said that policymakers are considering raising the budget deficit for 2023 by issuing at least one trillion yuan (RM647.6 billion) in sovereign debt for infrastructure spending — an amount that would push the deficit to well above the 3% cap set in March. “It’s a big deal that Beijing is thinking of funding this itself,” said Dinny McMahon, head of China markets research at consultancy Trivium China. “This would be an implicit acknowledgment by Beijing that the traditional model of funding infrastructure is broken.” China has for years been loading debt on the balance sheets of local governments and companies they own to fund infrastructure spending — a key growth driver for the world’s second-largest economy. Putting more of the fiscal burden on the central government would underscore President Xi Jinping’s need to counter an China budget revision would mark ‘sea change’ in fiscal strategy (Oct 11): The forces underlying the Treasury debt market are extremely adverse as the US is on an unsustainable fiscal path, a senior International Monetary Fund official said. “US deficits are elevated and they’re projected to be persistent,” said Vitor Gaspar, director of the IMF’s Fiscal Affairs Department. “Under unchanged policies, debt dynamics in the US are very unfavourable.” Yields on Treasury securities have surged in recent weeks to the highest in more than 15 years, partly on concerns about burgeoning budget shortfalls, though they pared gains this week amid conflict in the Middle East and more dovish remarks by Federal Reserve officials. The US is forecast to post a fiscal deficit of around 6% of gross domestic product this year, even though the economy is expanding and unemployment is low. The Congressional Budget Office expects similar-sized shortfalls to persist throughout the coming decade. Polarization in Washington has made it hard for politicians to agree on deficit-trimming measures like spending cuts or tax increases. While Gaspar said he doesn’t see any financing risks in the Treasury market in the foreseeable future, he warned that “the perpetuation of current policies entails an unsustainable fiscal path.” The IMF forecasts that US public debt will grow at a rate of two to three percentage points per year as a share of economic output over the medium and long term, Gaspar said. US general government debt was 121% of gross domestic product last year, according to the Fund. ‘Systemic’ risk low The US is not alone in facing a challenging fiscal situation. “Global public debt is now substantially higher, and it is projected to grow considerably faster than in pre-pandemic projections,” Gaspar said. “Government interest expenses on budgets are going to increase over time.” Still, he said, the IMF’s assessment is that “the risk of a ‘systemic’ wave of sovereign debt defaults remains low.” The Fund forecasts that global public debt will be approaching 100% of GDP US Treasury debt dynamics ‘very unfavourable’, IMF official says BY RICH MILLER Bloomberg BY TOM HANCOCK Bloomberg by the end of the decade — near where it was in the first pandemic year of 2020, before rapid growth and surging inflation lowered the burden. The global debt ratio stood at 92% at the end of last year. Fiscal restraint is needed in many countries to help build buffers to deal with future crises and to contain potential financing risks, Gaspar said. A tighter fiscal stance would also be helpful in reducing inflation to central bank targets, he added. Like the US, China is on an unsustainable fiscal path, according to Gaspar. But also like the US, “immediate financial pressures are absent,” he said. If not for the US and China, world public debt would be on a declining rather than a rising path as a share of global GDP, according to Gaspar. The IMF official’s comments came in an interview with Bloomberg and in written and spoken remarks related to the release of the Fund’s Fiscal Monitor on Wednesday. Read also: Higher rates may be needed to curb inflation, Fed’s Bowman says World is dominated by junk government bonds after US downgrade Read the full story economic slowdown, while also highlighting growing concern among authorities that indebted local governments are running out of room to leverage up. The Chinese government usually tries to make sure its headline budget deficit never exceeds 3% of gross domestic product. So rare is the landmark proposal to revise the budget in the middle of the year that it’s only been done a handful of times during emergencies, such as in the aftermath of the 2008 earthquake in Sichuan province and the 1998 Asian Financial Crisis. A move beyond the usual debt-to-GDP target “could show a greater sense of urgency of the policymakers” as they push to meet a goal of about 5% economic growth in 2023, according to Citigroup Inc. economists led by Yu Xiangrong. “If this plan materialises we think it will undoubtedly boost confidence and raise the probability of the nation achieving its 5% growth target. It will also signal that senior leaders are serious about stabilizing the economy — they’ve noticed the constraints local governments face in delivering fiscal stimulus — and are willing to adopt more flexible methods to do so,” said Bloomberg economists David Qu and Eric Zhu. Chinese stocks gained on Wednesday, with the Hang Seng China Enterprises Index rising as much as 2.1% while the onshore benchmark CSI 300 Index rose as much as 0.9% to halt two days of losses. Still, traders remain skeptical about a sustainable rebound in equities, given previous rallies have faded. “The news can help sentiment but the impact will fade, even if it materializes, as investors will think it isn’t enough,” said Redmond Wong, a market strategist at Saxo Capital Markets in Hong Kong.

THURSDAY OCTOBER 12, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): India’s market regulator is investigating the relationship between the Adani Group and a fund incorporated in the British Virgin Islands to see if there has been a violation of share ownership rules, two sources with direct knowledge of the matter said. The fund is called Gulf Asia Trade & Investment, the sources said. It is owned by Dubai businessman Nasser Ali Shaban Ahli, according to checks of its website last month although the site has since been pulled down. The fund has invested in several listed Adani firms, according to the Organised Crime and Corruption Reporting Project (OCCRP) and data that the investigative journalist group has provided to Reuters. The probe is part of the Securities and Exchange Board of India’s (SEBI) investigation into the Indian conglomerate which follows a January report by short-seller Hindenburg Research that said offshore shell companies “surreptitiously” owned stock in Adani listed firms, posing governance concerns. A key question for SEBI investigators is whether Gulf Asia’s ties with the Adani Group were such that it would be deemed to be acting “in concert” with key Adani shareholders, said the sources, who deIndia regulator probing ties between Adani Group and Gulf Asia fund, say sources (Oct 11): India is expected to impose restrictions on its sugar exports, after dry weather parched cane crops in the world’s second-biggest grower, a move that will tighten global supplies of the sweetener. The South Asian nation is likely to curb shipments during the new season that started on Oct 1, and a decision will be made soon, said people familiar with the matter, who asked not to be identified as the talks are confidential. Quotas for some overseas sales can be issued if domestic supply improves, they said. India recorded its weakest monsoon in five years, and any drop in agricultural output will heap pressure on the government of Prime Minister Narendra Modi to control food inflation, ahead of elections next month and in 2024. Export curbs will squeeze the market and likely boost futures in New York and London. A spokesperson who represents India’s food and commerce ministries didn’t immediately respond to a request for comments. India introduced a quota system in 2022-23, and restricted sugar exports to about six million tons after late rains reduced production, compared with an unrestricted 11 million tons a year earlier. According to a Bloomberg survey of 14 analysts, traders and millers last month, most said India may not export any sugar this season due to lower output. Two respondents said shipments could total at least two million tons. Raw sugar futures surged to a 12-year high India set to restrict sugar exports in threat to global supply BY PRATIK PARIJA & SIDDHARTHA SINGH Bloomberg BY JAYSHREE P UPADHYAY & KRISHN KAUSHIK Reuters in September on concerns around tight supply, despite a bumper harvest from Brazil, the world’s top producer. Some parts of India’s Karnataka and Maharashtra states — key growing regions — were among the driest areas this monsoon, according to the weather office. Output from Thailand, the world’s second-largest exporter, is poised to slide by almost a fifth in the upcoming harvest because of a severe drought, according to an industry group estimate last month. The onset of El Niño this year has led to drier conditions and lower rainfall across many parts of Asia. Read also: India mulls extension of parboiled rice curbs ahead of key polls clined to be identified as the investigations are ongoing and private. This part of the SEBI investigation has not been previously reported. The Adani Group did not comment on the SEBI probe and its possible ties with the fund when contacted by Reuters. Shares of Adani Enterprises turned negative after the report and were trading down 0.1% while those of Adani Ports were also down 0.5%. The conglomerate has previously said it categorically rejects allegations by OCCRP that there was an “opaque use” of funds by business partners to invest in its listed companies. It has also denied allegations made by Hindenburg, saying all transactions made with entities that qualified as related parties had been fully disclosed. SEBI and Gulf Asia did not respond to requests for comment. Reuters was not able to contact Ahli. Emails and phone calls made to his main financial services firm, Al Jawda Trade and Services which is based in the United Arab Emirates, went unanswered. Read the full story BLOOMBERG

THURSDAY OCTOBER 12, 2023 19 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): Samsung Electronics Co reported a more modest slide in quarterly profit after staunching losses at its chip division, suggesting the global semiconductor market may have rounded a corner. Samsung shares rose as much as 4.4%, their most in more than a month, with some investors saying a 78% decline in operating income was better than they had feared. South Korea’s largest company has been struggling with an industry downturn alongside smaller rivals SK Hynix Inc and Micron Technology Inc. Mainstay customers, including makers of personal computers and smartphones, have been cutting orders to deal with weak demand for gadgets and an excess inventory of chips. Operating income fell to about 2.4 trillion won (US$1.8 billion or RM8.47 billion) on a 13% slide in sales in the three months to September, according to Samsung’s preliminary results. The numbers, in line with analyst estimates, reflect an improvement from the record 95% year-on-year plunge in the previous quarter. Expectations are rising that Samsung’s semiconductor business “has pretty much passed the bottom”, said Sanjeev Rana, the head of Korea Research at CLSA. “And the recovery is underway in the fourth quarter.” The news comes days after the US granted the company and Hynix an exemption to acquire the equipment they need to sustain and expand their chipmaking operations in China. That’s lifted some uncertainty hanging over the two memory leaders, allowing them to operate in the world’s biggest chip arena and make longer-term bets. Samsung now seeks to position itself to benefit from a long-anticipated artificial intelligence (AI)-related boom in tech spending, fuelled by investor and consumer excitement over OpenAI’s ChatGPT debut last fall. But in the development of tools needed to train AI, Samsung is playing catchup with smaller Hynix, the main supplier of next-generation DRAM to AI chipmaker Nvidia Corp. Samsung has said it plans to double its capacity to make high-bandwidth memory, which has the capacity needed to speed up AI training, by 2024. Hynix’s shares have gained almost 60% this calendar year before Wednesday’s trading, compared with Samsung’s 20% rise. Until AI-related demand translates into sales, however, Samsung and Hynix have said they will weather economic uncertainty by cutting output of NAND chips used in PCs and phones. That’s helped support prices of both DRAM and NAND, in a sign that the market may at long last be bottoming out. Samsung, a bellwether for the tech industry because of its leading position in chips, electronics and smartphones, has also benefited from robust sales of its foldable phones. The world’s largest smartphone maker introduced the fifth generation of its foldable phones, pressing into a territory as yet untapped by rival products from Apple Inc. Its display sales are expected to have gotten a boost from smartphone users’ preference for bigger screens, such as those used in new iPhones by Apple, which is a customer as well as a competitor. Read the full story Samsung’s profit slide slows in sign of a chip market bottom (Oct 11): Huawei Technologies Co has scored a hit in China with its latest electric vehicle, making its manufacturing partner Asia’s top stock over the past month and giving Tesla Inc. and other rivals reason to take notice. More than 50,000 orders were placed for the revamped Aito M7 in the first 25 days since its September launch. Analysts are hailing the electric SUV’s early success, attributed in part to Huawei’s strong lure among consumers in China where it has a large network of retail shops. Stock investors are cheering as well, driving shares of Huawei’s automaker partner Seres Group Co. up more than 50% since the M7’s release, making it the best performer on the MSCI Asia Pacific Index. That compares with declines in Tesla and Chinese EV makers including BYD Co over the same span. “The success of Huawei-backed Aito M7 bears no doubt,” Morgan Stanley analysts including Cindy Huang wrote in a note. “Investors should increasingly focus on the potential headwinds” from other Huawei EVs due to be released later this year, they added. China is the world’s largest market for electric vehicles, with EVs accounting for 38% of the nation’s new-car sales in August. And the nation’s homegrown automakers have made large gains on the global stage as well, with BYD now poised to overtake Tesla in sales volume. After surging earlier this year, howevHuawei encroaches on Tesla’s turf, pushing China EV maker up 50% er, Chinese EV stocks have slumped in recent months amid concerns over valuations. Competitive threats have also deterred investors, and evidence of unlisted Huawei making inroads could delay a rebound. “Potential victims” of the M7’s order wins include Li Auto Inc’s L7/L8, Tesla’s Model Y, XPeng Inc’s G6/G9 and BYD’s Tang, according to Morgan Stanley’s Huang. The Aito car is priced starting at 249,800 yuan (RM161,845). Investors need to monitor launches of the Aito M9 and another Huawei-backed vehicle the Luxeed S7 before year-end, as “stocks would react first” before conclusive sales data, Huang wrote. While known to global tech watchers for its position at the centre of US-China tensions, Huawei has a positive image among the Chinese public, often seen as a symbol of the nation’s self-reliance in technology. After a number of years developing EV know-how, its established footprint of mobile phones shops is seen giving it an advantage in attracting consumer traffic. “The new M7 is gaining traction due to its upgraded, Huawei-developed ADAS and connectivity technologies, competitive pricing as well as greater showroom traffic brought by Huawei’s new Mate 60 smartphone,” said Joanna Chen, an analyst with Bloomberg Intelligence. The Shenzhen-based company’s R&D capabilities, brand cachet and expansive sales network all help, she added. BY CHARLOTTE YANG Bloomberg BY YOOLIM LEE Bloomberg More than 50,000 orders were placed for the revamped Aito M7 in the first 25 days since its September launch. Analysts are hailing the electric SUV’s early success, attributed in part to Huawei’s strong lure among consumers in China where it has a large network of retail shops.

THURSDAY OCTOBER 12, 2023 20 THEEDGE CEO MORNING BRIEF WORLD MUMBAI/NEW DELHI (Oct 11): Private equity firm Blackstone has held preliminary discussions with Walt Disney to acquire a stake in the Indian arm of the entertainment firm, two sources familiar with the matter told Reuters on Wednesday. Blackstone is the latest suitor for Disney’s assets in the hyper competitive Indian market, where it has been exploring a sale or a joint venture partner for the digital and TV business. Blackstone and Disney declined to comment. Blackstone-backed US media firm Candle Media, founded by former Disney executives, led conversations between the two parties last week, one of the sources said. Indian newspaper The Economic Times first reported the talks earlier on Wednesday. Disney has also held talks with Indian billionaires Gautam Adani and Sun TV Network owner Kalanithi Maran, Bloomberg News reported last week. With subscriber exits accelerating, Disney has sought to revive the fortunes of its streaming business in India by offering free cricket on smartphones, betting that the strategy will boost advertising revenue. It has meanwhile lost streaming rights for some key cricket tournaments to Indian billionaire Mukesh Ambani’s broadcasting unit — including the Indian Premier League and the national cricket team’s bilateral matches. Blackstone holds initial talks with Disney for stake in Indian arm — sources (Oct 11): Exxon Mobil Corp agreed to buy Pioneer Natural Resources Co for US$59.5 billion, the supermajor’s largest takeover in more than two decades, as it seeks to become the dominant producer of shale oil. Exxon will pay US$253 per share in an all-stock deal, according to a statement. The agreement paves the way for Exxon’s biggest acquisition since merging with Mobil Corp in 1999 and is the world’s largest corporate takeover announced this year. The transaction amounts to an 18% premium for Pioneer investors, based on the closing price on Oct 5, when reports of the impending deal began to swirl. If finalized, the combination will make Exxon far and away the biggest player in the Permian Basin of Texas and New Mexico and bring the company’s daily production to nearly 4.5 million barrels of oil equivalent a day — 50% more than the next biggest supermajor. Exxon shares dropped 1.7% at 6.39am in pre-market trading in New York. Pioneer fell 1%. The agreement will greatly expand Exxon’s inventory of yet-to-be-drilled sites in the world’s biggest shale basin, giving it access to a vast number of potential onshore wells that, unlike deepwater ones, can be brought online within months and make Exxon far more nimble at keeping pace with erratic global demand. The combined company will control the equivalent of 16 billion barrels of crude reserves in the Permian region, according to the statement. Exxon combining with Pioneer would also be the biggest push yet by an oil major into the Permian, consolidating a wide swath of the patch where production has been fragmented and largely the province of independent producers. When shale output in the basin began to boom around the middle of the last decade, big companies like Exxon were nowhere to be found. Supermajors initially shunned the Permian because they were skeptical the wells there could produce sufficient crude over a long enough period of time to yield big profits. It became clear, however, that low-cost, easy-to-drill shale wells enabled companies to quickly ramp up production when needed. It marked a revolutionary departure from Big Oil’s offshore mega projects that cost billions of dollars and require a decade of planning. The Permian went on to become the western hemisphere’s most-prolific oil field, making the US the top global producer. The majors began to take serious notice around 2017, when Exxon bought drilling rights in the Permian from the Bass family Exxon to buy Pioneer for US$60 bil to dominate shale oil of Fort Worth for US$6 billion. Chevron Corp, Shell Plc and BP all went on to become big players there, too. Nonetheless, the basin still has more than 1,000 producers, and the majors only make up about 15% of overall production. Exxon has been hunting for another significant acquisition in the Permian for years. The stars, however, never quite aligned. The company’s finances took a hit during the pandemic as oil prices plunged and as it ramped up spending on large global projects, forcing Exxon to borrow billions of dollars to pay dividends. The war in Ukraine changed the landscape. Exxon had already been pulling back on spending, cutting costs and reaping the benefits of pandemic-era investments. Then Russia’s invasion sent oil prices surging. Exxon’s profits jumped to a record $59 billion in 2022. Its stock gained more than 80% last year, providing the financial firepower for a era-defining deal with Pioneer. The deal is apt to face tough antitrust scrutiny from the Federal Trade Commission. President Joe Biden has asked the commission to investigate high gasoline prices and last year singled out Exxon’s record profits, accusing the company of making “more money than God.” Questions have swirled about a potential Exxon-Pioneer deal since April, when the smaller company’s Chief Executive Officer Scott Sheffield announced that he planned to retire at year’s end. Sheffield has worked in the Permian since the 1970s and is credited as an architect of the shale boom that made the US an oil powerhouse. Read the full story Read also: Global energy consumption to increase through 2050, outpace efficiency gains — EIA BY KEVIN CROWLEY & DAVID WETHE Bloomberg BY M SRIRAM & ADITYA KALRA Reuters The agreement will greatly expand Exxon’s inventory of yet-to-bedrilled sites in the world’s biggest shale basin, giving it access to a vast number of potential onshore wells that, unlike deepwater ones, can be brought online within months and make Exxon far more nimble at keeping pace with erratic global demand.

thursday OC T Ober 12, 2023 21 The E dge C E O m o rning brief world (Oct 11): HSBC Holdings plc is distancing itself from its top diplomat at an awkward time. In some ways, the bank has never needed the role more. Public affairs head Sherard Cowper-Coles is expected to leave the position after his unguarded comments about the UK’s “weak” handling of relations with Beijing by siding with the US, which triggered fresh scrutiny of HSBC’s engagement with China and the West. His phrasing was a blunt reminder that HSBC is only getting deeper into China, even as its economy struggles and tensions simmer with the US. The lender agreed to buy Citigroup Inc’s retail wealth business in the mainland this week, adding a further US$3.6 billion (RM17.02 billion) in assets and deposits in the Communist Party-controlled nation. Cowper-Coles, a former UK ambassador who’s spent a decade at HSBC, insists his comments in June were made in a personal capacity. Still, there’s no question the bank would have a lot to gain if the UK took his advice to warm to China, even if it stokes a backlash from Washington. HSBC HSBC’s China game plan clashes with rising political risks (Oct 11): Warren Buffett’s buying of Japanese trading firms helped propel the nation’s stocks to multi-decade highs. Six months on, insurers and banks are emerging as the next potential value targets. Insurers have low price-to-book ratios, strong fundamentals and relatively high returns, said Masakazu Takeda, who manages the US$294 million (RM1.39 billion) Hennessy Japan Fund for Sparx Asia Investment Advisors Ltd in Hong Kong. Major banks are also prospects on the likelihood of tighter monetary policy, said analysts at Mizuho Securities Co and Mitsubishi UFJ Morgan Stanley Securities Co. An endorsement from the billionaire goes a long way. The five trading firms that Buffett favoured — Mitsubishi Corp, Mitsui & Co, Sumitomo Corp, Marubeni Corp and Itochu Corp — are up more than 20% since a report in April said he raised holdings in the sector and was looking to increase exposure to Japanese stocks. Gains were even greater three weeks ago, before the market flirted with a correction, amid higher bond yields and a small recovery in the yen. “Buffett likes businesses that are unsexy, boring yet have solid fundamentals and attractive valuations,” said Sparx’s Takeda, who can envisage the US investor looking at major insurers Tokio Marine Holdings Inc, Sompo Holdings Inc and MS&AD Insurance Group Holdings Inc. “The thesis for trading companies has probably played out already quite well.” While Buffett doesn’t have a stake in other major Japanese companies, “there are always a few I’m thinking about”, he told Nikkei in April. A spokesperson for Berkshire Hathaway Inc didn’t immediately respond to requests for comments. Buffett is known for taking long-term stakes in companies with low valuations, which many Japanese insurers and banks have. Insurers in the Topix have an average price-to-book ratio of 1.1, below 1.5 Buffett watchers tout Japan’s financial firms as next value play by Aya Wagatsuma & Akemi Terukina Bloomberg by Ambereen Choudhury & Harry Wilson Bloomberg for the benchmark. Lenders are at 0.7. Fundamentals also bode well for financial firms, amid speculation the Bank of Japan will move towards ending negative rates once it can see stable inflation accompanied by wage gains helping to create a positive cycle in consumption and price growth. Banks and insurers have climbed more than 30% since the start of April, putting them among the best performers on the Topix. “If wage increases become clearer at the beginning of next year, and if interest rates in Japan are sure to rise, Buffett may buy in early next year,” said Masatoshi Kikuchi, the chief equity strategist of Mizuho Securities. “I think there is still potential for major bank stocks.” While lenders could catch Buffett’s attention, he may focus on expanding his stakes in trading companies, according to Atsuko Ishitoya, a strategist at Daiwa Securities Co. Berkshire plans to increase investments to up to 9.9% of each of the five Japanese firms that he holds, the company said in June. Mineo Bito, the president of Bito Financial Services Co in Tokyo, agreed that trading firms are likely to remain as a major part of Buffett’s portfolio. The strategist, who has attended Berkshire shareholder meetings since 2014, added that Buffett may consider holding companies with stable growth such as Shin-Etsu Chemical Co, Bridgestone Corp and Fujifilm Holdings Corp. “Buffett will continue buying Japanese trading companies,” Bito said. “This investment has been one of the best he has made in recent years.” Bloomberg Bloomberg Read the full story itself has little flexibility in its own stance towards Beijing, given its long-standing ties and reliance on the world’s second-biggest economy. The bank declined to comment. “The strategy of most has been to remain as aloof from the politics as possible,” said Dennis Wilder, the Central Intelligence Agency’s former deputy assistant director for East Asia and the Pacific. “With far greater scrutiny now from places like the US Congress, it becomes more and more difficult for them to remain below the radar.” Geopolitical tensions have become one of the single largest risks for multinationals as conflict rages on in Ukraine and the Middle East, and as spats persist between the US and China over Taiwan. HSBC Holdings plc public affairs head Sherard Cowper-Coles is expected to leave the position after his unguarded comments about the UK’s 'weak' handling of relations with Beijing by siding with the US, which triggered fresh scrutiny of HSBC’s engagement with China and the West.

thursday OC T Ober 12, 2023 22 The E dge C E O m o rning brief world (Oct 11): LVMH shares fell after the world’s largest luxury group reported softer sales growth in the third quarter (3Q) — more evidence the post-pandemic boom in high-end goods is losing steam. Organic revenue at the French group’s crucial fashion and leather goods unit, which includes the Louis Vuitton and Christian Dior labels, rose 9%, the company said on Tuesday, below analysts’ expectations and half the pace of the first six months. Sales at the wines and spirits unit tumbled 14%, much worse than estimates. “After three roaring years and outstanding years, growth is converging toward numbers that are more in line with the historical average,” LVMH chief financial officer Jean-Jacques Guiony said during the quarterly presentation. The luxury group passed the crown of Europe’s most valuable company last month to drugmaker Novo Nordisk A/S. Sales in Asia, excluding Japan, grew 11% — well short of estimates in the third quarter and a sign that China may be losing steam. The only unit that recorded sales ahead of analysts’ expectations was selective retailing, which includes cosmetics chain Sephora. Asked about the long-term growth outlook of Dior, the group’s second biggest fashion label, Guiony said it had tripled in size in less than seven years. “At some point, growth rates have to normalise,” Guiony said. “Don’t expect the brand to continue to grow 30% per annum for ever. It will not happen,” he said, adding that Dior will continue to deliver value. Guiony said its jewellery brand Bulgari fared a bit better in 3Q due to its bigger exposure to Asia compared to Tiffany, which has a bigger footprint in the US. Organic revenue growth in the US was only 2% in the period. Consumers ‘sober up’ “This seems a sign of continuing moderation, as consumers sober up after the post-pandemic euphoria,” Bernstein analyst Luca Solca said in a note. Overall, the group posted 9% organic revenue growth, below estimates. LVMH is considered a bellwether for the luxury sector. Rivals Hermes International and Gucci owner Kering SA report later this month. LVMH sales growth slows as global luxury demand cools NEW YORK (Oct 11): German premium footwear Birkenstock Holding chose to price its US initial public offering (IPO) conservatively at the middle of its indicated price range at US$46 (RM217.37) per share on Tuesday, the company said. The IPO raised about US$1.48 billion based on 32.3 million shares sold and values the company at about US$9.3 billion on a fully diluted basis. Birkenstock is the fourth major company to launch a US IPO in the last four weeks following those of chip designer Arm Holdings, grocery deliver app Instacart and marketing automation platform Klaviyo. The slew of recent listings briefly raised hopes of a broad recovery in equity capital markets after a nearly 18-month dry spell. However, the three newly listed companies gave up most of their share price gains in the days following their IPOs, raising concerns over the near-term outlook for new stock market launches. While shares of Arm and Klaviyo still trade above their IPO price, Instacart’s stock is now worth less than its IPO value. Birkenstock prices US IPO conservatively at US$46 per share by Anirban Sen & Echo Wang Reuters by Angelina Rascouet Bloomberg LVMH Moet Hennessy Louis Vuitton SE fell as much as 8.5% in early Paris trading. The stock, a favourite of investors in recent years, had already lost some lustre as China’s recovery underwhelmed and demand from US consumers cooled. bloomberg Birkenstock was founded in 1774 in the German village of Langen-Bergheim by Johannes Birkenstock and his younger brother Johann Adam Birkenstock, who were both shoemakers. The Birkenstock family ran the business for six generations after its founding. The brand has been seeking to position itself as a fashionable item worn by models and celebrities. Barbie, played by Margot Robbie, wore a pink pair of Birkenstocks in the final scene of the movie released this summer. L Catterton, the private equity group backed by French billionaire Bernard Arnault and luxury goods empire Louis Vuitton Moet Hennessy, acquired a majority stake in Birkenstock in 2021. After the IPO, L Catterton will hold an 82.8% stake in Birkenstock and control a majority of the combined voting power of its outstanding shares. Birkenstock’s shares will start trading on Wednesday on the New York Stock Exchange under the ticker “BIRK”. Goldman Sachs, JPMorgan Chase and Morgan Stanley are the lead underwriters for the IPO. bloomberg

THURSDAY OCTOBER 12, 2023 23 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): Qantas Airways Ltd chairman Richard Goyder will step down next year, as part of a boardroom clean-out, as the carrier brings in fresh faces to repair its battered reputation. Goyder will retire before the airline’s annual meeting in late 2024, Qantas said on Wednesday. Fellow directors Jacqueline Hey and Maxine Brenner will retire at the half-year results in February after decade-long tenures. Until today, Goyder had brushed off demands that he step aside to take responsibility for the raft of scandals that have diminished the standing of Australia’s largest airline. He also faced criticism for being stretched too thin by simultaneously chairing oil and gas giant Woodside Energy Group Ltd and the Australian Football League — the nation’s most popular spectator sport. Under his watch, the airline illegally sacked 1,700 ground workers during the pandemic, while passenger frustration grew with mounting cancellations and delays. Perhaps most damagingly, Australia’s antitrust watchdog is suing Qantas for selling seats on thousands of services last year that the airline had already decided to cancel. Goyder’s decision to go after five years in the job — already too long for some shareholders and many staff — follows the early retirement last month of then chief executive officer Alan Joyce. Shares in Qantas were up 1.3% at 11am in Sydney trading. Amid the passenger disgruntlement, legal woes and investor unease, the stock is wallowing about 26% below a July peak. Read the full story Qantas chairman to step down next year to repair airline’s reputation (Oct 11): Hong Kong mortgage loans that exceed the property’s value are likely to reach their highest since 2005 next year if home prices keep falling, according to Bloomberg Intelligence (BI). Negative-equity mortgages may surge beyond 5% of home loans in 2024, analysts Francis Chan and Patrick Wong wrote in a note published on Wednesday. That’s based on their prediction that secondary home prices will tumble another 10% in the next 12 months. Rising interest rates are weighing on the city’s home market, with used property values falling 18% from their peak in 2021, according to data from Centaline Property Agency Ltd. Banks may struggle with losses and foreclosures stemming from a higher number of underwater mortgages, according to BI. Delinquencies could cause 2024 credit costs at BOC Hong Kong Holdings Ltd, Hang Seng Bank Ltd and Bank of East Asia Ltd to increase beyond the consensus, the analysts estimated. HSBC Holdings plc’s outstanding mortgages in Hong Kong amounted to HK$802 billion (US$103 billion or RM485.07 billion) in the first half, followed by BOC Hong Kong’s HK$421 billion. Home loans accounted for almost 36% of all lending in the city for HSBC, including its subsidiary Hang Seng Bank. Hong Kong has seen the number of foreclosed homes rise, with such properties for sale climbing to the most since 2009 in September. Banks have been struggling to offload them despite discounts. Read also: US mortgage rate climbs to fresh multi-decade high of 7.67% (Oct 11): A payment-technology company which counts Goldman Sachs Group Inc and HSBC Holdings Plc among its key investors has fired its chief executive officer amid allegations of sexual assault and harassment. Tradeshift Holdings Inc dismissed its co-founder Christian Lanng due to “serious allegations of sexual assault and harassment” and “gross misconduct on multiple grounds,” the company, which is based in San Francisco and Copenhagen, said in a statement late on Tuesday (Oct 10). Tradeshift’s board became aware of the allegations in late August and dismissed Lanng on Sept 1, according to the statement. The US-Danish company has named chief revenue officer James Stirk acting CEO until a permanent replacement is found, and said it will set up a “dedicated and anonymous whistle-blowing line” for its 800 employees. “I have always been able to vouch for my actions as a leader,” Lanng said in message sent to Bloomberg News. He added that he hopes the new management focuses “on creating value for employees and shareholders”. Tradeshift, which operates in 13 countries, was valued at US$2.7 billion in a 2021 financing round. Lanng and two other Danish entrepreneurs, Mikkel Hippe Brun and Gert Sylvest, formed the company under the name EasyTrade in 2005. Goldman and HSBC invested in 2018. HSBC invested an additional US$35 million in July, as part of a plan to form a new, jointly-owned business developing embedded finance solutions and apps. Hong Kong home prices may drop 10%, driving negative-equity mortgages to 19- year high Danish fintech fires CEO facing sexual assault complaint BY SHAWNA KWAN Bloomberg BY CHRISTIAN WIENBERG Bloomberg BY ANGUS WHITLEY Bloomberg BLOOMBERG BLOOMBERG

THURSDAY OCTOBER 12, 2023 24 THEEDGE CEO MORNING BRIEF WORLD (Oct 11): For months, Alphabet Inc’s Google and Discord Inc have run an invitation-only chat for heavy users of Bard, Google’s artificial intelligence-powered chatbot. Google product managers, designers and engineers are using the forum to openly debate the AI tool’s effectiveness and utility, with some questioning whether the enormous resources going into development are worth it. “My rule of thumb is not to trust LLM output unless I can independently verify it,” Dominik Rabiej, a senior product manager for Bard, wrote in the Discord chat in July, referring to large language models — the AI systems trained on massive amounts of text that form the building blocks of chatbots like Bard and OpenAI Inc’s ChatGPT. “Would love to get it to a point that you can, but it isn’t there yet.” “The biggest challenge I’m still thinking of: what are LLMs truly useful for, in terms of helpfulness?” said Googler Cathy Pearl, a user experience lead for Bard, in August. “Like really making a difference. TBD!” Ever since Google released Bard, its answer to OpenAI’s popular ChatGPT bot, in March, it has added a steady stream of new features to the product, including the capability for the AI tool to analyze photos and generate responses to queries in dozens of languages. Last month, Google unveiled its most ambitious update yet: connecting Bard to its most popular services, such as Gmail, Maps, Docs and YouTube. The company rolled out the app integrations, starting in English, on Sept 19. But as Google has further integrated Bard into its core products, the company has also been beset with complaints about the tool generating made-up facts and giving potentially dangerous advice. The same day the company introduced app extensions, it also announced a Google search button on Bard to help people double-check the tool’s AI-generated responses for factuality against results from its search engine. Other experts have raised concerns about the working conditions of the thousands of low-paid contractors training Bard, based on what the workers say are convoluted instructions that they’re asked to complete in minutes. Inside and outside the company, the internet-search giant has been criticized for providing low-quality information in a race to keep up with the competition, while brushing aside ethical concerns. BY DAVEY ALBA Bloomberg Even Google insiders are questioning Bard AI chatbot’s usefulness For Google, ensuring the success of its Bard AI chatbot is of utmost importance. The company is far and away the leader in search, its financial lifeblood that generates about 80% of parent company Alphabet’s revenue. But as generative AI has exploded onto the scene, Google’s search dominance has been challenged, with some predicting that the new and buzzy tools from OpenAI and other startups could upend Google’s powerful position in the market. Two participants on Google’s Bard community on chat platform Discord shared details of discussions in the server with Bloomberg from July to October. Dozens of messages reviewed by Bloomberg provide a unique window into how Bard is being used and critiqued by those who know it best, and show that even the company leaders tasked with developing the chatbot feel conflicted about the tool’s potential. Expounding on his answer about “not trusting” responses generated by large language models, Rabiej suggested limiting people’s use of Bard to “creative / brainstorming applications.” Using Bard for coding was a good option too, Rabiej said, “since you inevitably verify if the code works!” The debate about Bard’s limitations and potential on Google’s Discord channel is a “routine and unsurprising” part of product development, Google said in a statement. “Since launching Bard as an experiment, we’ve been eager to hear people’s feedback on what they like and how we can further improve the experience,” said Jennifer Rodstrom, a Google spokesperson. “Our discussion channel with people who use Discord is one of the many ways we do that.” The company added that it launched the Discord server as an invitation-based community ahead of making it more widely accessible. At Bard’s launch, the company was upfront about its limitations, including about the possibility for the AI tool to generate convincing-sounding lies. Anytime someone uses Bard, Google includes a disclaimer on the tool that states: “Bard may display inaccurate or offensive information that doesn’t represent Google’s views.” Company representatives have also said that Google carried out adversarial testing — meant to probe how it would respond to potential bad actors — internally before Bard was rolled out, and that the company expects to learn more as the public continues to use it. The Discord server was started back in July, when thousands of invites were sent out to frequent users of Bard outside the company. “Share thoughts and ideas directly with the team behind Bard, get early notifications about product updates, and connect with other AI enthusiasts,” the invitation, sent on July 10, said. The server description calls the channel the “official” community for Bard users, and Bard’s senior product director, Jack Krawczyk, sent a selfie video to the community as the tool launched in Europe. Almost 9,000 people are currently members of the online community, and a few of the chat’s moderators are employees of Discord. Most discussions revolve around cheerleading Bard and AI; some users made fantastical, and likely misguided, claims about the tool’s capabilities, including that they had built a quantum chess computer using Bard or that they could use the bot to trawl the web for data on baseball betting odds and run complex simulations. (Google employees chimed in on the Discord chat to say that Bard didn’t have those capabilities.) Daniel Griffin, a recent PhD graduate from University of California at Berkeley who studies web search and joined the Discord group in September, said it isn’t uncommon for open source software and small search engine tools to have informal chats for enthusiasts. But Griffin, who has written critically about how Google shapes the public’s interpretations of its products, said he felt “uncomfortable” that the chat was somewhat secretive. Read the full story

thursday OC T Ober 12, 2023 25 The E dge C E O m o rning brief world news In brie f Indonesia to launch crude palm oil futures exchange on Oct 13 JAKARTA (Oct 11): Indonesia, the world’s biggest palm oil exporter, will launch its crude palm oil (CPO) futures exchange on Friday, but it will not make trading via the exchange mandatory, its chief regulator told Reuters on Wednesday. Authorities in the Southeast Asian country had previously planned to make it mandatory for all CPO exports to go through the exchange, in order to drive global palm oil prices and create benchmarks similar to those in Kuala Lumpur and Rotterdam. “This future exchange will hopefully create the CPO price reference for Indonesia, so we can have data and create better policies related to the industry,” Didid Noordiatmoko, head of the regulator BAPPEBTI, said in a phone interview. The Indonesia Commodity and Derivatives Exchange (ICDX) has been appointed as the exchange, and transactions will be quoted in the rupiah currency, Didid said. — Reuters Read the full story Japan starts its first carbon credit exchange in net zero push (Oct 11): Trading on Japan’s first carboncredit exchange started on Wednesday, as the nation looks to put a price on emissions to help zero them out by 2050. The market is being run by the Tokyo Stock Exchange (TSE), and participants can trade so-called J-Credits, a locally issued unit certified by the government that is awarded to projects that reduce emissions, which can be used by companies or institutions wishing to offset their own pollution. There will be credits from six categories, such as renewable energy and agriculture. Carbon credits have faced criticism, because of the problem of proving that projects make additional reductions that wouldn’t have occurred without them. They have also stirred a debate about how much companies should be trying to shrink their carbon footprints, before they offset what they deem to be unavoidable emissions. Japan’s move comes as governments across Asia attempt to price pollution, though the region’s carbon markets have so far fallen short of delivering any meaningful impact, unlike more developed ones such as the European Union’s. Japan aims to cut greenhouse gas emissions by 46% from 2013 levels by 2030, and plans “full-scale” emissions trading by 2026, although details haven’t yet been released. — Bloomberg Read the full story Japanese banks warn of delayed money transfers as glitch persists (Oct 11): Japanese banks including Mitsubishi UFJ Financial Group Inc are urging customers to use accounts at rivals for fund transfers, as a widespread system glitch continues for a second day. The trouble at the Zengin System for domestic interbank remittances has hit 11 banks since Tuesday morning, and the operator is unable to say when it will be fixed. It has delayed about 1.4 million transactions involving money sent from these banks, the operator said at a briefing on Tuesday evening. That figure excludes transactions in which other financial institutions tried to send money to these lenders. MUFG Bank Ltd, a unit of Mitsubishi UFJ, asked clients to consider using other banks if they have urgent money transfer needs. Resona Bank Ltd told customers that fund transfers with other lenders could be delayed to the next day. The Japanese Bankers Association, which operates the Zengin System, said the glitch emerged after the replacement of relay computers during the long weekend that lasted through Monday. An association official said it is looking into the causes with NTT Data Corp, the information technology vendor for the system. — Bloomberg The Washington Post plans to cut 240 jobs through voluntary buyouts — reports NEW YORK (Oct 11): The Washington Post plans to cut 240 jobs through the offering of voluntary buyouts, the newspaper announced Tuesday, AP Finance reported. In an email sent to staff, interim CEO Patty Stonesifer said that The Post had been “overly optimistic” about growth projections for the past two years and into 2024. “We are working to find ways to return our business to a healthier place in the coming year,” she wrote. Stonesifer said that the buyouts would be offered to certain jobs and departments, but didn’t specify which ones. Eligible employees will be notified after an all-staff meeting Wednesday morning, she said, and can later choose to decline or accept the separation package in the coming weeks, AP Finance reported.” — theedgemalaysia.com Indonesia wants to co-host 2034 World Cup with Australia, Malaysia, Singapore (Oct 11): Indonesia is in discussions with Australia about a possible joint bid to host the 2034 World Cup along with Malaysia and Singapore, the president of the country’s football federation (PSSI) said on Wednesday. World football’s governing body Fifa invited member associations from Asia and Oceania to bid for the rights to the 2034 edition last week. “We are discussing (a bid) with Australia,” PSSI president Erick Thohir was quoted as saying by the Sydney Morning Herald. “When I visited Malaysia and Singapore both countries expressed interest to join Indonesia and Australia.” When asked for comment on a possible joint bid, Football Australia referred Reuters to a statement last week that said it was “exploring the possibility of bidding for the 2029 Fifa Club World Cup and/ or the Fifa World Cup 2034”. The Asian Football Confederation said it would not comment on the report. The PSSI, Football Association of Malaysia and Football Association of Singapore have not responded to a Reuters request for comment. After announcing Spain, Morocco and Portugal would host the 2030 World Cup, with Uruguay, Paraguay and Argentina staging the opening games, Fifa invited Asia and Oceania to bid for 2034. Saudi Arabia quickly announced its intention to bid for the hosting rights and Fifa have set a deadline of Oct 31 for other interested parties to make their intentions known. The 2026 World Cup, which will feature 48 teams, will be hosted by the US, Canada and Mexico. — Reuters Read the full story bloomberg reuters reuters

THURSDAY OCTOBER 12, 2023 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) CLASSITA HOLDINGS BHD 160.89 -0.005 0.075 -79.45 92.5 KNM GROUP BHD 154.60 -0.010 0.110 120.00 444.8 KANGER INTERNATIONAL BHD 89.85 -0.015 0.100 150.00 65.0 SARAWAK CONSOLIDATED 84.61 0.020 0.515 255.17 329.7 UEM SUNRISE BHD 71.13 -0.015 0.855 235.29 4325.0 SAPURA ENERGY BHD 66.07 0.005 0.055 57.14 878.8 WIDAD GROUP BHD 56.52 0.000 0.540 25.58 1672.1 EVERGREEN MAX CASH CAPITAL* 52.62 -0.005 0.440 NULL 490.6 VELESTO ENERGY BHD 46.18 0.000 0.260 73.33 2136.1 EKOVEST BHD 43.92 -0.015 0.535 57.35 1586.5 ACO GROUP BHD 34.90 0.045 0.275 25.00 95.5 MALAYSIAN RESOURCES CORP BHD 33.62 -0.005 0.460 55.93 2055.1 META BRIGHT GROUP BHD 29.80 0.010 0.240 41.18 568.6 YTL CORP BHD 28.77 0.000 1.490 156.90 16336.5 PUC BHD 28.35 -0.005 0.040 14.29 72.9 ECONPILE HOLDINGS BHD 25.80 0.005 0.365 114.71 517.4 ISKANDAR WATERFRONT CITY BHD 25.46 -0.020 0.705 161.11 649.4 TA WIN HOLDINGS BHD 25.27 0.005 0.040 -27.27 137.4 CIMB GROUP HOLDINGS BHD 24.10 0.050 5.600 -3.45 59724.6 TOP GLOVE CORP BHD 24.00 -0.005 0.735 -18.78 5886.0 Data as compiled on Oct 11, 2023 * Newly listed this year Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA HOLDINGS BHD 0.010 100.00 1.1 -33.33 64.5 AE MULTI HOLDINGS BHD 0.015 50.00 20.9 -40.00 32.5 PROGRESSIVE IMPACT CORP BHD 0.095 26.67 16,280.5 -63.46 62.3 NEXGRAM HOLDINGS BHD 0.025 25.00 962.0 -64.29 16.2 ASDION BHD 0.030 20.00 13,947.4 -68.42 13.4 TWL HOLDINGS BHD 0.030 20.00 13,476.2 -14.29 141.4 ACO GROUP BHD 0.275 19.57 34901.4 25.00 95.5 GRAND CENTRAL ENTERPRISES BHD 0.385 18.46 3.2 10.00 75.8 S&F CAPITAL BHD 0.135 17.39 1,968.1 58.82 74.3 PNE PCB BHD 0.070 16.67 227.0 27.27 39.2 CME GROUP BHD 0.035 16.67 32.0 16.67 36.2 TA WIN HOLDINGS BHD 0.040 14.29 25,271.4 -27.27 137.4 GREEN PACKET BHD 0.050 11.11 3,866 -9.09 99.7 MINETECH RESOURCES BHD 0.050 11.11 801.8 -9.09 76.5 JOHAN HOLDINGS BHD 0.050 11.11 16.5 -9.09 58.4 SAPURA ENERGY BHD 0.055 10.00 66,071.9 57.14 878.8 PAN MALAYSIA HOLDINGS BHD 0.055 10.00 109.1 -21.43 51.1 ASIA MEDIA GROUP BHD 0.120 9.09 55.0 -20.00 28.7 OVERSEA ENTERPRISE BHD 0.060 9.09 0.5 -24.21 136.1 STRAITS ENERGY RESOURCES BHD 0.125 8.70 2,485.4 8.70 117.8 Data as compiled on Oct 11, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) MMAG HOLDINGS BHD 0.010 -33.33 128.1 -60.00 24.2 AT SYSTEMATIZATION BHD 0.010 -33.33 2125.1 -33.33 67.9 COMPUGATES HOLDINGS BHD 0.010 -33.33 700 0.00 55 XIDELANG HOLDINGS LTD 0.020 -20.00 84 -20.00 42.3 G3 GLOBAL BHD 0.020 -20.00 5522.6 -33.33 75.5 WAJA KONSORTIUM BHD 0.065 -18.75 9195.5 -27.78 72.5 SMTRACK BHD 0.025 -16.67 189.1 -50.00 30.4 ALDRICH RESOURCES BHD 0.030 -14.29 33.0 0.00 33.4 KANGER INTERNATIONAL BHD 0.100 -13.04 89,852.5 150.00 65.0 KOMARKCORP BHD 0.035 -12.50 2,995.5 -36.36 40.4 PUC BHD 0.040 -11.11 28,347.0 14.29 72.9 NETX HOLDINGS BHD 0.170 -10.53 16,163.8 183.33 156.3 PERMAJU INDUSTRIES BHD 0.045 -10.00 47.5 0.00 87.5 ARK RESOURCES HOLDINGS BHD 0.325 -9.72 20.0 14.04 22.6 CITRA NUSA HOLDINGS BHD 0.050 -9.09 50.0 -23.08 36.0 INNITY CORP BHD 0.505 -9.01 22.1 21.69 70.4 KNM GROUP BHD 0.110 -8.33 154,592.9 120.00 444.8 SEDANIA INNOVATOR BHD 0.175 -7.89 4,022.2 -33.96 60.8 XOX TECHNOLOGY BHD 0.060 -7.69 742.9 33.33 53.6 CHEETAH HOLDINGS BHD 0.130 -7.14 71.1 18.18 63.2 Data as compiled on Oct 11, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 122.600 -3.900 174.3 -12.43 28,749.7 PETRONAS DAGANGAN BHD 22.680 -0.280 230.0 -0.73 22,531.5 FRASER & NEAVE HOLDINGS BHD 25.360 -0.240 134.3 17.52 9,301.5 HEINEKEN MALAYSIA BHD 24.540 -0.220 562.6 -2.62 7,413.5 KUALA LUMPUR KEPONG BHD 21.880 -0.220 1,545.2 -2.15 23,596.2 AYER HOLDINGS BHD 7.000 -0.200 0.3 6.06 524.0 SHL CONSOLIDATED BHD 2.080 -0.110 14.5 13.04 503.6 AURELIUS TECHNOLOGIES BHD 2.600 -0.090 2,068.8 42.08 1,024.4 CHIN HIN GROUP BHD 3.830 -0.080 3,565.5 18.58 6,776.9 PETRONAS GAS BHD 17.020 -0.080 890.5 -0.58 33,678.0 PETRONAS CHEMICALS GROUP 7.230 -0.070 4,611.9 -15.93 57,840.0 TIME DOTCOM BHD 5.310 -0.070 3,295.6 24.07 9,806.7 PERUSAHAAN SADUR TIMAH 3.430 -0.070 8.5 -21.87 442.8 DKSH HOLDINGS MALAYSIA BHD 4.720 -0.060 51.4 9.72 744.1 PPB GROUP BHD 15.060 -0.060 761 -13.65 21424.4 NATIONGATE HOLDINGS BHD 1.230 -0.060 11,248.0 0.00 2,550.9 PANASONIC MANUFACTURING 18.160 -0.060 7.6 -20.70 1,103.1 PENTAMASTER CORP BHD 5.240 -0.060 261.7 18.28 3,727.3 COMINTEL CORP BHD 1.340 -0.060 156.8 65.43 512.6 INNITY CORP BHD 0.505 -0.050 22.1 21.69 70.4 Data as compiled on Oct 11, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) BATU KAWAN BHD 20.640 0.340 24.3 -7.44 8119.4 LPI CAPITAL BHD 11.760 0.260 49 -6.96 4685.0 AEON CREDIT SERVICE M BHD 12.200 0.200 290.3 -3.02 3114.8 CARLSBERG BREWERY MALAYSIA 19.700 0.100 236.700 -13.9 6023.2 IOI PROPERTIES GROUP BHD 1.790 0.090 16807.9 68.87 9856.0 D&O GREEN TECHNOLOGIES BHD 3.410 0.090 481.0 -20.33 4222.6 MSM MALAYSIA HOLDINGS BHD 1.420 0.090 6,604.0 67.06 998.2 MCE HOLDINGS BHD 1.790 0.080 2394.6 32.59 110.6 HAP SENG CONSOLIDATED BHD 4.990 0.080 3293.2 -22.03 12423.5 SHANGRI-LA HOTELS MALAYSIA BHD 2.180 0.070 3,531.3 -36.81 959.2 IHH HEALTHCARE BHD 5.950 0.070 4645.5 -2.74 52401.6 APOLLO FOOD HOLDINGS BHD 5.410 0.070 633.8 40.16 432.8 WESTPORTS HOLDINGS BHD 3.210 0.060 2,371.2 -15.53 10946.1 RCE CAPITAL BHD 2.540 0.060 109.7 50.3 1861.4 KEIN HING INTERNATIONAL BHD 1.520 0.060 472.3 -28.3 165.5 GRAND CENTRAL ENTERPRISES BHD 0.385 0.060 3.2 10 75.8 DUTCH LADY MILK INDUSTRIES BHD 22.580 0.060 49.6 -25.33 1445.1 BANK ISLAM MALAYSIA BHD 2.240 0.060 2,928.8 -17.95 5076.9 AMMB HOLDINGS BHD 3.900 0.060 8,337.1 -5.8 12909.3 SYARIKAT TAKAFUL MALAYSIA 3.600 0.050 1,629.9 4.65 3014.3 Data as compiled on Oct 11, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 33,739.30 134.65 0.40 S&P 500 * 4,358.24 22.58 0.52 NASDAQ 100 * 15,131.52 84.37 0.56 FTSE 100 * 7,628.21 9.41 0.12 AUSTRALIA 7,088.41 47.78 0.68 CHINA 3,078.96 3.72 0.12 HONG KONG 17,893.10 228.37 1.29 INDIA 66,501.09 421.73 0.64 INDONESIA 6,931.75 9.57 0.14 JAPAN 31,936.51 189.98 0.60 KOREA 2,450.08 47.50 1.98 PHILIPPINES 6,253.96 -10.11 -0.16 SINGAPORE 3,192.87 -6.20 -0.19 TAIWAN 16,672.03 151.46 0.92 THAILAND 1,455.99 21.54 1.50 VIETNAM 1,150.81 7.12 0.62 Data as compiled on Oct 11, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,554.00-11.00 OIL US$ 87.18-0.47 RM/USD 4.7177 RM/SGD 3.4616 RM/AUD 3.0299 RM/GBP 5.7954 RM/EUR 5.0060