TheEdge CMB-130526

ceoMorningBriefWednesday, M AY 1 3 , 2 0 2 6Issue 1152/2026theedgemalaysia.comTrump warns Mideast truce on ‘life support’, Iran says ready for any aggression p2HOME: Equinix to build another data centre in Cyberjaya for US$190 mil p4Economy minister urges local authorities, state govts to cut rental rates p5Oppstar extends rally, sparking interest in other tech stocks p6UOA REIT unitholders reject RM200 mil business park asset buy p8WORLD: China earns US$500 mil an hour from exports supercharged by AI p17French Parliament summons TotalEnergies chief over Iran war ‘superprofits’ p20bernamaReport on Page 3.ILO denies endorsing Bestinet migrant worker platform, rejects UN recognition claim

wednesday May 13, 2026 2 The E dge C E O m o rning briefpublished 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, Malaysiapublisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong managing director, business . Sharon Teh chief operating officer . Lim Shiew Yuineditors . Jenny Ng . Tan Choe Choe to contact editors: [email protected] advertise: [email protected] edge ceo morning briefRead 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 [email protected] warns Mideast truce on ‘life support’, Iran says ready for any aggressionWASHINGTON/DUBAI (May 12): Hopes for a peace deal on Iran dwindled on Tuesday after Donald Trump said a ceasefire with Iran was “on life support” as Tehran rejected a US proposal to end the conflict and stuck to a list of demands the US president described as “garbage”.Iran has called for an end to the war on all fronts, including Lebanon, where US ally Israel is fighting Iran-backed Hezbollah militants. Tehran also emphasised its sovereignty over the Strait of Hormuz, demanded compensation for war damage, and an end to the US naval blockade, among other conditions.Trump said Iran’s response threatened the status of a ceasefire announced on April 7.“I would call it the weakest right now, after reading that piece of garbage they sent us. I didn’t even finish reading it,” Trump, who has repeatedly threatened to end the ceasefire, told reporters.Oil extends gainsThe US had proposed an end to fighting before starting talks on more contentious issues, including Iran’s nuclear programme. In Washington, the Pentagon put the cost of the war at US$29 billion (RM114.1 billion) so far, an increase of US$4 billion from an estimate provided late last month.Brent crude oil futures extended gains on Tuesday, climbing to almost US$108 a barrel, as the deadlock left the Strait of Hormuz largely closed. Before the war began on Feb 28, the narrow waterway carried a fifth of the world’s oil and liquefied natural gas shipments, and has since become a central pressure point in the conflict.US Central Command said the aircraft carrier Abraham Lincoln was in the Arabian Sea continuing to enforce the US blockade against Iran, having redirected 65 commercial vessels and disabled four.US ally Kuwait announced the arrest of four infiltrators affiliated with Iran’s Revolutionary Guards after they attempted to by Nandita Bose & Jana Choukeir Reutersenter the Gulf state by sea, according to the state news agency KUNA, citing the interior ministry. There was no immediate reaction from Iran to the report.Iranian officials stand firmIranian officials meanwhile issued statements signalling continued resolve in the face of US pressure.A Fars news agency report cited Mohammad Akbarzadeh, deputy political director of the Islamic Revolutionary Guard Corps Navy, as saying Iran had expanded its definition of the Strait of Hormuz into a “vast operational area” under a new plan.There was no immediate reply from Iranian authorities to a request for comment on Akbarzadeh’s remarks, which defined the waterway as a zone stretching from the coast of the city of Jask in the east to Siri Island in the west.In a post on X, parliamentary national security and foreign policy commission spokesperson Ebrahim Rezaei said Iran could enrich uranium up to 90% purity, a level considered weapons-grade, if the country is attacked once more.In Iran’s capital Tehran, the Guards held drills “centered on preparation to confront the enemy”, state TV reported.The US on Monday imposed new sanctions on individuals and companies it said were helping Iran ship oil to China, part of efforts to cut off funding for Tehran’s military and nuclear programmes, while also warning banks about attempts to evade existing curbs.Trump is expected to arrive in Beijing on Wednesday, where Iran is set to be among the topics discussed with Chinese President Xi Jinping.Trickle of shipping through HormuzTraffic through the Strait of Hormuz is at a trickle compared with before the war. Shipping data on Kpler and LSEG showed that three tankers laden with crude exited the waterway last week, with trackers switched off to avoid an Iranian attack.In the US, surveys show the war is unpopular with US voters who are paying more for fuel less than six months before nationwide elections that will determine whether Trump’s Republican Party retains control of Congress.Two out of three Americans, including one in three Republicans and almost all Democrats, think Trump has not clearly explained why the country has gone to war, according to a Reuters/Ipsos poll completed on Monday.Trump said he would suspend the federal tax on gasoline until it was “appropriate”, to help reduce fuel prices.“As soon as this is over with Iran, as soon as it’s over, you’re going to see gasoline and oil drop like a rock,” he said.In the Qatari capital Doha, visiting Turkish Foreign Minister Hakan Fidan said his country supported efforts to reopen the Strait of Hormuz and added that the channel should not be used as a “weapon” during the Iran war.Washington has struggled to build international support, with Nato allies refusing to send ships to reopen the waterway without a full peace deal and an internationally mandated mission.The US State Department said on Monday Secretary of State Marco Rubio held separate calls with his Australian and British counterparts to discuss “efforts to restore freedom of navigation in the Strait of Hormuz”. It did not elaborate.US Navy/AFP

wednesday May 13, 2026 3 The E dge C E O m o rning briefhomeKLUANG (May 12): The Defence Ministry (Mindef) has confirmed that the freeze on procurement funds for Malaysian Armed Forces (MAF) assets has been lifted following restructuring measures implemented to ensure there are no issues involving leakages or misuse of funds.Defence Minister Datuk Seri Mohamed Khaled Nordin said all military asset procurement matters were now proceeding as planned. “There is no longer any freeze because we have carried out restructuring measures that can ensure there are no leakages, misuse of funds and related issues,” he Freeze on Armed Forces’ procurement funds lifted after restructuring measures, says defence ministerKUALA LUMPUR (May 12): The International Labour Organization (ILO) said it does not support or endorse the Foreign Workers Centralized Management System (FWCMS) run by Bestinet Sdn Bhd, and also denied that the system has any official recognition from the United Nations.“The FWCMS is not a UN recognised platform. The official title of the award is the World Summit Awards (WSA). The WSA is one of the activities of the non-profit organisation International Center for New Media,” it said in a statement on Monday to clear up confusion over claims about Bestinet and its FWCMS platform.The statement entitled “International Labour Organisation statement promoting fair and effective recruitment in Malaysia” was in response to claims by lawyers of Bestinet dated April 23, which claimed that the platform is “UN recognised”, and that it is “recommended by the International Labour Organization and “designed in accordance with the principles and policies of the International Labour Organization and the International Organization for Migration”.The ILO said that while the WSA was initiated within the context of the UN World Summit on the Information Society and is aligned with UN Sustainable Development Goals, it is not an award issued by the UN.“Hence the award, while indeed bona fide, does not imply UN recognition,” the ILO statement read. The tripartite UN agency also clarified that its positive comments regarding the FWCMS were made during the proposal stage in 2013 and should not be construed as an endorsement of the company or any subsequent implementation of the system.According to the ILO, Bestinet executives briefed its regional office in Bangkok on the proposed FWCMS on April 10, 2013.ILO denies endorsing Bestinet migrant worker platform, rejects UN recognition claimby Choy Nyen Yiau theedgemalaysia.comBernama“The ILO found the Bestinet proposal to be well presented, innovative, comprehensive and demonstrate a good understanding of some of the challenges faced in the effective management of labour migration,” it said.However, the organisation stressed that it did not assess Bestinet’s credentials or competence to carry out the proposed system.“These comments should not be construed as an endorsement of the company,” it added.The FWCMS has been used for the recruitment of migrant workers to Malaysia since 2018, particularly from Bangladesh. The system consists of various modules covering worker health checks, insurance and recruitment agents.However, the system has come under scrutiny over allegations of exploitation involving Bangladeshi migrant workers through opaque business practices, which Bestinet has consistently denied.It was previously reported that Bestinet proposed a new migrant worker recruitment system, dubbed Turap (the Universal Recruitment Advanced Platform), but the proposal was reportedly shelved by the Malaysian government following pressure from politicians and civil society groups over the company’s role.The ILO said in 2021, Malaysia and Bangladesh agreed to follow a global standard which stated that workers should not pay recruitment fees or hidden costs to secure jobs. Employers expected to cover most hiring costs, including airfares.However, by 2023, reports said some Bangladeshi workers arrived in Malaysia but found no actual jobs waiting for them.After that, in 2024, the ILO, together with the International Organization for Migration and the UN Office on Drugs and Crime, raised concerns and offered help to improve Malaysia’s migrant worker system to make it more transparent and fair.told reporters after officiating the MAF Madani Economy Programme at Batu 3 Camp here on Tuesday.Previously, he said Mindef was discussing the status of the frozen MAF procurement funds with the Finance Ministry to ensure critical operations and preparedness were not affected.On Jan 16, Prime Minister Datuk Seri Anwar Ibrahim ordered all procurement decisions involving the MAF and Royal Malaysian Police (PDRM) linked to corruption issues to be temporarily frozen until procurement procedures were fully complied with.continues on Page 4Shahrin Yahya/The Edge

wednesday May 13, 2026 4 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): American digital infrastructure company Equinix Inc said on Tuesday it will develop a new data centre for US$190 million (RM747 million) in Cyberjaya.The new KL2 will be built less than 1km from Equinix’s existing KL1 data centre, the company said in a statement. Once fully built out, KL2 will deliver more than 2,200 cabinets serving digital companies, hyperscalers, and multinational enterprises, it said.“By extending its presence in Kuala Lumpur, Equinix continues to strengthen regional connectivity and support busiKUALA LUMPUR (May 12): KK Mart Retail Bhd plans to start meeting potential cornerstone investors next month for the convenience store chain operator listing, according to the Wall Street Journal (WSJ).The company, which could be valued at about US$750 million or nearly RM3 billion, aims to launch its initial public offering (IPO) in early September, the American financial newspaper reported on Tuesday, citing unEquinix to build another data centre in Cyberjaya for US$190 milKK Mart to start meeting cornerstone investors ahead of IPO — WSJtheedgemalaysia.comtheedgemalaysia.comnesses in building resilient, future-ready digital infrastructure,” the company said.Equinix did not disclose the project’s power capacity but noted that KL2 is targeting 100% renewable energy coverage from day 1 of operations.KL2 will mark Equinix’s fourth data centre in Malaysia and the latest from the company that operates over 280 data centres in 36 countries globally. Equinix’s portfolio in Asia totals 65 data centres in countries including Australia, China, India, Indonesia, Japan and Singapore.The facility is designed to support a mix of customers, ranging from agile retail enterprises to large footprint deployments and high-density workloads. To meet the demands of artificial intelligence and high-performance computing, a substantial portion of total capacity supports liquid cooling.“The development is part of Equinix’s long-term expansion strategy in Malaysia, with future growth potential supported by adjacent land secured for future expansion, reinforcing Kuala Lumpur’s role as a key interconnection hub in Asean,” the company added.identified people familiar with the process.Listing is targeted by early October, the report said.Cornerstone investors – typically large institutional investors such as pension funds and insurers – commit to take up a portion of IPO shares before they are marketed to other retail and institutional investors. Their presence helps to build up other investors’ confidence to invest in the IPO.The company, which operates more than 1,000 eponymous convenience stores, didn’t immediately respond to the Journal’s request for comment.The proposed IPO on the Main Market comprises a public issue of new shares and an offer for sale of existing shares at a price to be determined later, according to its draft prospectus filed in April. All in all, the listing would offer up to a 24% stake in the company.Proceeds from the public issue will be used to expand its network by another 302 outlets, bringing its total to 1,290 stores over the next 15 months. The company also plans to expand its distribution centre, invest in digital, IT hardware and software, and repay bank borrowings.KK Mart reported a net profit of RM96.98 million for the financial year ended June 30, 2025 (FY2025), on revenue of RM1.57 billion.Maybank Investment Bank is the principal adviser, sole bookrunner, underwriter and placement agent for the IPO. from Page 3The freeze followed controversies involving alleged corruption and abuse of power linked to several former top MAF leaders.Meanwhile, on whether Mindef was reviewing procurement matters following the global supply crisis, Mohamed Khaled said this was among aspects being closely monitored by the ministry.He said the National Economic Action Council (MTEN) had also requested Mindef to provide proposals on how the country’s defence sector could adapt to the global supply crisis and conflicts in West Asia.In this regard, he said the ministry viewed the enhancement of local defence industry capabilities as one of key areas that needed to be strengthened through an asymmetrical warfare approach.“For example, we should adopt an asymmetrical warfare approach, which refers to a situation where two countries have vastly unequal military strengths, and countries facing such circumstances would usually adopt this strategy.“This approach involves a country producing local products in large quantities at low cost, while possessing the capability to integrate information technology (IT) and electronic systems,” he said.Meanwhile, on the case involving a soldier who suffered serious injuries, including a fractured skull, in an incident at Kem Iskandar in Mersing, Mohamed Khaled said the investigation paper had been submitted to the deputy public prosecutor for further action by the relevant authorities.It was reported that the victim, Abdul Hamid Talib, 25, from Semporna, who serves with the 22nd Commando Regiment at the camp, is unable to speak and currently relies on breathing support equipment.Defence Minister Datuk Seri Mohamed Khaled Nordin said all military asset procurement matters were now proceeding as planned.The Edge filepixby Zahid IzzaniThe Edge filepix by Low Yen Yeing

wednesday May 13, 2026 5 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): The Global Supply Crisis Monitoring Dashboard, jointly developed by the Ministry of Economy and the Department of Statistics Malaysia, is expected to be accessible to the public from May 15, said Economy Minister Akmal Nasrullah Mohd Nasir.He said the dashboard is intended to serve as a transparent and easily accessible central reference point for the public to monitor current developments related to the global supply crisis.“The public-facing dashboard comprises 10 main submenus, including energy, commodities, cost of living, economic performance, foreign exchange rates and trade flows,” he said during the global supply crisis briefing on Tuesday.At the same time, he said the government’s dedicated version would be used as an internal monitoring platform to assess crisis developments, identify early risks, and formulate mitigation strategies and actions in a more structured manner based on near real-time data.He said the initiative marks an important shift in how the government manages crises by using near real-time data to detect early pressures, coordinate responses and provide clearer information to the public.Akmal Nasrullah also said the government welcomed the World Bank’s recommendation on four priorities for Malaysia, namely ensuring energy security, strengthening fiscal space, managing energy demand and targeting support to households and businesses genuinely affected.He said this aligns with the government’s decisions through initiatives currently at various stages of implementation, as the approach also emphasises the importance of ensuring smooth supplies of critical goods and supply chain financing for vulnerable firms.“The World Bank’s view is that global pressures are layered. Rising global prices of oil, fertilisers and food have different but interconnected impacts. Based on the World Bank’s assessment, these developments indicate that price pressures remain concentrated on key commodities, with spillover effects on production costs and the cost of living. “Therefore, policy responses must take into account the direct impact on the people as well as the knock-on effects on businesses and supply,” he said.As such, he said the government is focused on securing supply, extending the resilience of existing supply and curbing price pressures, with efforts underway to coordinate export controls on certain fuels, ensure the supply of essential goods, manage purchase quotas, promote energy conservation and strengthen close cooperation with industry players.He said any policy adjustments would be implemented carefully, in a targeted and temporary manner, with priority given to protecting the people, ensuring supply stability and managing the country’s fiscal position responsibly.“The National Economic Action Council will continue to update the status of energy and fuel supplies from time to time to ensure domestic needs remain prioritised, while boosting industry confidence in operational continuity and the sustainability of the country’s economic activities,” he said.Global supply crisis dashboard available to Malaysian public from May 15KUALA LUMPUR (May 12): The National Economic Action Council (MTEN) has urged local authorities and state governments nationwide to immediately reduce rental rates for premises and shops under their management.Economy Minister Akmal Nasrullah Mohd Nasir said the move is crucial to help petty traders, night market operators and micro-entrepreneurs cope with rising operating costs, which now account for an average of 7% to 58% of their total business expenses.“They are exposed to weak cash flow and often rely on a single source of income. Without intervention, the risk of business closures could increase significantly,” he said during the online briefing on the global supply crisis on Tuesday.He said the initiative has already been rolled out by federal agencies such as Majlis Amanah Rakyat (Mara), which is offering a 20% rental reduction for 7,135 of its premises starting this month.Meanwhile, he said Kuala Lumpur City Hall (DBKL) is offering a 50% rental cut for selected hawker stalls until December 2027.“This can be implemented in a targeted way, depending on the capacity of each local authority. The aim is to ensure petty traders can keep operating, ease their burden and pressure, ensure workers continue to earn, Economy minister urges local authorities, state govts to cut rental ratesprevent premises from standing empty and keep local economic activity going,” he said.For the services sector, Akmal Nasrullah said the services producer price index rose 2.1% in the first quarter of 2026, driven by higher prices in the accommodation, food and beverage, and transport subsectors.“This trend suggests that cost pressures are now starting to spill over into sectors closer to consumers,” he said.On the cost of living, he said that while overall food prices remain under control, there has been a slight upward trend in some items from May 4 to 6.He cited examples such as mackerel, which rose from RM16.76 to RM17.42 per kg, while white prawns increased by 1.2% to RM32.11 per kg.Also seeing price increases were mustard greens, up 4.0% to RM7.23 per kg, and fresh coconut milk, which rose 6.7% to RM16.88 per kg.“Although statistics show that food prices remain largely under control, the prime minister (Datuk Seri Anwar Ibrahim) and MTEN members have expressed concern that some groups, especially in rural areas, are already feeling the pressure of rising daily prices,” he said.Read the full storyBernamaBernamaSam Fong/The Edge

wednesday May 13, 2026 6 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): Inari Amertron Bhd reported that a fire broke out at one of its manufacturing plants in the Philippines and may cause losses of up to US$5 million (RM21.3 million).In a filing with Bursa Malaysia, the semiconductor packaging and testing group said the fire occurred at its wholly-owned subsidiary, Amertron Incorporated, in the Philippines (AIP), on May 10 at about 2.30pm and was successfully contained about an hour later.The incident affected part of the manufacturing facility within plant CK1 in Clark, the Philippines, including sections of the production floor, certain machinery, inventories and supporting facilities.The affected facility spans about 12,500 sq ft, representing 10% of the total manufacturing space of 125,000 sq ft at CK1, the company said.Operations at the affected area have been suspended pending safety inspections and clean-up works while operations in the non-affected sections of CK1 have also been temporarily halted due to a power shutdown mandated by the authorities.Inari said preliminary investigations indicated that the fire may have originated from a wiring short circuit in the ceiling area of the affected facility.“No fatalities or injuries have been reported,” it said.The extent of the damage and the cause of the incident are currently being assessed by the relevant authorities and the company’s insurers, Inari said.The financial impact arising from the incident cannot be reliably estimated pending completion of the assessment, although the loss is not expected to exceed US$5 million, it added.The company said operations are expected to resume upon approval and installation of dedicated power lines.Meanwhile, AIP’s other plant, CK2, with a manufacturing space of 83,000 sq ft, was not affected and continues to operate as usual.“We are currently evaluating alternative production arrangements to minimise disruption to customer deliveries,” the company said.Inari shares rose two sen, or just over 1%, to RM1.93 ahead of the announcement on Tuesday, valuing the company at RM7.34 billion.Inari Amertron flags US$5 mil fire loss at Philippine plant KUALA LUMPUR (May 12): Malaysian technology stocks rallied on Tuesday as investors piled into a semiconductor frenzy that shows no sign of easing even amid the Middle East geopolitical tensions.Investors who missed out on SkyeChip Bhd’s massively oversubscribed initial public offering (IPO) are also seeking a piece of the action, sparking a sharp increase in trading volume in select technology stocks.Demand for artificial intelligence (AI) shows little sign of slowing as investors, including fund managers, rush for an exposure, according to an analyst at Hong Leong Investment Bank.Technology stocks are also getting a lift from structural tailwinds, particularly with US hyperscalers still ramping up their capacity with combined capital expenditure commitments of up to US$800 billion, the analyst said.Oppstar Bhd (KL:OPPSTAR), in particular, rose 18% to 80.5 sen on Tuesday, adding to the 79% surge a day earlier on news of the Penang-based company being offered chip design token along with SkyeChip.Automation systems firm Genetec Technology Bhd (KL:GENETEC) climbed 44% to 36 sen, while Globetronics (KL:GTRONIC), which develops and manufactures integrated circuits, rose 13% to 29 sen.Oppstar is among the first three local inOppstar extends rally, sparking interest in other tech stockstegrated circuit design firms offered tokens to Arm Flexible Access (AFA) platform that provides access to Arm’s chip designs so they can experiment, develop, and test products without paying full licensing fees upfront.SkyeChip, en route to the Main Market, is also granted a token to access the AFA platform. Privately held GreatAsic Technology Sdn Bhd, meanwhile, was given access to AFA, as well as higher-tier Compute Subsystems (CSS) token to high-performance design systems for direct chip creation.SkyeChip’s IPO closed last week with overwhelming investor demand. Applications for the public tranche exceeded the amount on offer by 95 times, as investors put in bid worth a total of RM3.04 billion, the largest since 2010, Maybank Investment Bank said on Friday.by Jazlin Zakri theedgemalaysia.comby Choy Nyen Yiau theedgemalaysia.com12 Things You Must Know About A StockClick to 0501001502000306090Oppstar BhdMay 13, 2025 May 12, 2026Vol (mil) Sen*As at market close on May 12, 2026Source: Bloomberg*80.5 sen54 sen01002003000.00.30.60.91.2Genetec Technology BhdMay 13, 2025 May 12, 2026Vol (mil) RM/sen*36 senRM1.04*As at market close on May 12, 2026Source: Bloomberg01020300204060Globetronics Technology BhdApr 18, 2025 May 12, 2026Vol (mil) Sen*29 sen44 sen*As at market close on May 12, 2026Source: Bloomberg

wednesday May 13, 2026 7 The E dge C E O m o rning brief

wednesday May 13, 2026 8 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): UOA Development Bhd (KL:UOADEV) announced that its proposed RM200 million disposal of three properties in UOA Business Park to UOA Real Estate Investment Trust (KL:UOAREIT) has been called off after unitholders of the REIT did not approve the transaction.In a Bursa Malaysia filing on Tuesday, the property developer said the conditional sales were not approved at UOA REIT’s adjourned unitholders’ meeting on April 29.As a result, the condition precedent under the sales and purchase agreements (SPAs) was not met, leading to the rescission of the agreements.UOA Development said the vendor had accepted the rescission on May 8.The proposed disposal, announced in October last year, involved Tower 2A, Tower 2B and the car park at UOA Business Park near Subang Jaya, according to the company’s previous filings.Under the original terms, the assets were to be sold by Everise Project Sdn Bhd, a 60%-owned subsidiary of UOA Development, to UOA REIT.The transaction was expected to generate a net disposal gain of RM35.8 million for UOA Development, with proceeds earmarked for debt reduction, working capital and the development of a new adjacent commercial building.The deal structure included cash payments for Towers 2A and 2B, while the carpark sale was to be satisfied through the issuance of 107.83 million new UOA REIT units at 83 sen apiece.The transaction was classified as a related party-deal due to the involvement of common major shareholders and directors, namely Kong Chong Soon @ Chi Suim and Kong Pak Lim.At noon break on Tuesday, UOA Development’s shares were down by one sen or 0.54% to RM1.85, giving it a market value of RM4.89 billion. Meanwhile, UOA REIT’s counter paused unchanged at 81.5 sen, while the REIT had a market capitalisation of RM550.6 million.UOA REIT unitholders reject RM200 mil business park asset buyKUALA LUMPUR (May 12): Swiss investment bank UBS expects gold and silver to hit fresh record highs this year, as escalating Middle East tensions and the prospect of lower real interest rates fuel demand for precious metals.UBS precious metals strategist Joni Teves said the bank maintained its view that gold prices would reach new highs this year while the potential for prices to exceed its baseline forecasts over the medium to long term was increasing.“We still think that prices can recover from current levels and continue to make new highs this year,” Teves said during a presentation on UBS’ outlook.She noted that the drivers of the rally remain intact, supported by broadening demand from private investors and central banks, as gold increasingly becomes a core portfolio allocation amid heightened macroeconomic and geopolitical uncertainty.Teves added that the current consolidation offers investors a chance to build positions, with the market still appearing underinvested. Any pullback towards the US$4,000 per ounce level, she said, should be viewed as an opportunity to accumulate.“Even if the Fed stays on hold, if inflation is going up, that still means a compression in real rates,” she explained.“If the Fed has to respond to weaker growth by cutting rates, that’s an even more compressed real rate scenario, which tends to be bullish for gold.”Real interest rates are defined as the nominal rate minus the inflation rate.UBS also expects official sector demand to remain firm despite concerns over potential reserve sales following recent price volatility. Preliminary World Gold Council data showed first-quarter central bank purchases were slightly higher than a year earlier.Teves said sovereign buying has become a key pillar of support, absorbing UBS sees gold, silver scaling new highs amid inflation, war riskssupply, reducing liquidity and cushioning prices during periods of macroeconomic stress. Investor flows driven by macro factors continue to dominate short-term price action while official sector demand underpins the broader uptrend.She highlighted resilient sentiment in Asia, with Chinese gold exchange traded funds (ETFs) recording net inflows alongside strong physical demand earlier this year.On silver, UBS maintained a constructive outlook, projecting prices to rise alongside gold as supply deficits persist and investor sentiment improves.“We expect silver to follow gold higher. As gold makes new highs, silver should also make new highs,” Teves said.UBS noted silver could outperform gold as investors increasingly view it as a higher-beta alternative, though positioning remains more tactical given its volatility. Robust physical demand from China, including restocking and investment buying, should continue to support sentiment.Still, weaker industrial demand could weigh on silver if global growth slows sharply. The silver market has remained in deficit for some time, supported by inventory drawdowns and investment demand from China, India and the Middle East.UBS reaffirmed its year-end targets of US$5,600 per ounce for gold and above US$100 per ounce for silver.After hitting a record high above US$5,600 an ounce in late January, gold is now trading near US$4,730 an ounce. Silver, which touched an all-time high of US$121 earlier this year, is meanwhile trading above US$86 an ounce.by John Lai theedgemalaysia.comby Jazlin Zakri theedgemalaysia.com12 Things You Must Know About A StockClick to Gold priceSource: BloombergApr 1, 2025 May 12, 2026(US$ per ounce)2,0003,0004,0005,0006,000*4,724.623,113.38

wednesday May 13, 2026 9 The E dge C E O m o rning briefhomeSINGAPORE (May 12): Genting Singapore’s revenue for its 1QFY2026 ended March was down just 3% y-o-y to S$607.6 million (RM1.88 billion), but earnings in the same quarter plunged by 55% to S$65.2 million, on higher costs.While its gaming revenue was down 8% in the quarter to S$403.4 million, Genting Singapore says that there has been “improving momentum” towards the end of the period. On the other hand, non-gaming revenue was up 8% to $204 million, driven by higher visitor numbers to its attractions.“The ongoing conflict in the Middle East and current geopolitical developments have increased cost pressures across supply chains, including higher energy, freight and logistics expenses, while elevated airfares are weighing on travel demand and dampening consumer sentiments,” says Genting Singapore.The company says it remains focused on “asset optimisation” that includes a refreshed line up lifestyle and dining offerings so as to drive repeat visitors, and will continue to invest.Genting Singapore shares closed at 69 cents on May 12, up 1.47%.Genting Singapore’s 1Q earnings down 55% to S$65.2 milKUALA LUMPUR (May 12): After initially describing its aviation venture as a “non-binding” and “exploratory” agreement, Cape EMS (KL:CEB) revealed it had in fact paid RM14.6 million to Aeronas Aerocraft Sdn Bhd between March and December 2025 under a 2025 memorandum of understanding (MOU) to develop an aircraft assembly project in Johor. However, the group later found that the venture allegedly failed to meet its promised milestones, leading to the breakdown of the deal.In a reply to Bursa Malaysia’s queries on May 11, 2026, which included details on the terms of the MOU and the circumstances leading to Aeronas’ RM279 million suit, Cape EMS on Tuesday said under the March 9, 2025 agreement, its unit Cape Manufacturing (M) Sdn Bhd (CMM) committed RM20 million in two tranches.The first tranche of RM10 million was meant to build and equip an aircraft assembly workshop capable of producing up to eight planes a year, set up research and development and training facilities, develop aircraft engineering designs and specialised equipment, run promotional and public relations campaigns for a planned IPO, and complete the facilities within about three months. In return, Aeronas agreed to give CMM a 30% stake in the company.The next tranche of RM10 million was meant to cover the cost of shipping two fully-built aircraft and two semi-built aircraft from the US to Malaysia, as well as bringing in US technical teams to train local workers and oversee the project. It also included paying for staff, operations and other related expenses, with the US team required to arrive in Malaysia at least a month before the aircraft shipment to prepare for construction work.CMM also agreed to rent its Senai factory to Aeronas and provide an additional RM40 million loan to expand the plant’s production capacity to 30 aircraft annually.The revelation comes after Cape EMS issued a statement over the weekend to clarify that CMM’s deal with Aeronas remained only at an exploratory, non-binding MOU stage and never progressed into any binding commercial, operational, or investment agreement. It had said that the agreement was subject to conditions precedent and no further implementation agreements were signed.In detailing the circumstances leading to the filing of the CMM suit against Aeronas, Cape EMS said on Tuesday CMM entered the agreement after Aeronas allegedly represented that it controlled key Federal Aviation Administration of the United States of America certifications, aircraft technology, assets, and intellectual property needed for the project, and that the venture was commercially viable and Cape EMS reveals RM14.6 mil paid despite ‘nonbinding’ MOU in RM279 mil suitachievable within the proposed timeline.However, after payments were made, CMM claimed Aeronas failed to deliver its obligations: the aircraft assembly site was mainly used as office and storage space, the four US aircraft were never assembled, there was no evidence most US engineering teams were deployed, except one engineer, and project milestones were not met.The dispute escalated when Aeronas issued a RM50 million demand on March 11, 2026, which CMM rejected, stating Aeronas had not fulfilled key requirements such as licensing of aircraft manufacturing technology, sales orders for 15 aircraft, and confirmed bookings for aircraft worth RM229 million.This led Aeronas to file a RM279 million lawsuit against CMM in the Johor Bahru High Court on May 5, 2026.After which CMM filed a counterclaim for RM15.05 million against Aeronas, PetraX5 Sdn Bhd, Raja Shazreen Petra Raja Azman Shah, Raja Iman Petra Raja Azman Shah and Kamarulzaman Abdul Karim.Cape EMS said CMM is seeking to recover about RM15.05 million it claims to have spent under the March 9, 2025 MOU with Aeronas, along with declarations that the agreement was lawfully terminated and that the funds were held under a constructive trust. CMM is also asking the court for repayment of monies paid, an account of how the funds were used, return of assets or benefits provided, as well as additional damages, interest and legal costs.The group said its maximum exposure is about RM5 million and does not expect material financial or operational impact, noting that CMM is a small subsidiary contributing less than 5% of group net assets.Shares of Cape EMS closed up two sen or 6.9% to 31 sen on Tuesday, giving the group a market capitalisation of RM307.52 million.by Syafiqah Salim theedgemalaysia.comtheedgesingapore.com12 Things You Must Know About A StockClick to Cape EMS says paid Aeronas RM14.6 mil based on project claims, before venture missed key milestones.cape-group.com.my

wednesday May 13, 2026 10 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): Orkim Bhd (KL:ORKIM), which posted a net profit of RM24.11 million for the first quarter, said it is less affected by global shipping disruptions because it mainly operates in Malaysia and nearby regional routes, rather than long-haul international trade. That said, the group continues to monitor such risks under its risk management framework and remains cautiously optimistic for the rest of FY2026, supported by stable charter contracts and sustained demand for clean petroleum product (CPP) and liquefied petroleum gas (LPG) transportation.The group’s revenue stood at RM88.03 million for the first quarter ended March 31, 2026 (1QFY2026), its filing with Bursa Malaysia showed. The performance for the quarter was driven by stable fleet utilisation of 92% and steady contributions from existing charter and freight arrangements. The CPP marine transportation segment remained the key earnings driver, contributing about 93% of group revenue, supported by sustained fleet deployment and additional capacity.No year-on-year comparison is available as the group, backed by Ekuiti Nasional Bhd (Ekuinas), was listed on the Main Market in December last year. Orkim operates a fleet of 16 CPP tankers and two LPG carriers.by Syafiqah Salim theedgemalaysia.comby Choy Nyen Yiau theedgemalaysia.comOrkim posts RM24 mil profit for 1Q, sees limited impact from global shipping risksThere was no dividend declared for the quarter under review. According to Orkim, its fleet is largely secured under time charters, consecutive voyage charters and contracts of affreightment, providing earnings visibility.“Following the completion of the Ballast Water Treatment System (BWTS) retrofitting programme in FY2025, the group expects fleet availability and utilisation to remain stable for the remaining quarters of the financial year.“Barring unforeseen circumstances, the group will continue to focus on operational efficiency, cost discipline and high safety standards, while monitoring fuel prices, regulatory developments and broader geopolitical conditions,” it said.Shares of Orkim ended half a sen or 0.57% higher at 88.5 sen on Tuesday, giving it a market capitalisation of RM880.08 million. 12 Things You Must Know About A StockClick to Ekuinas hands over RM350 mil to PNB after exiting OrkimKUALA LUMPUR (May 12): Private equity firm Ekuiti Nasional Bhd (Ekuinas) distributed RM350 million as dividends to its parent Permodalan Nasional Bhd (PNB), following its full exit from petroleum tanker operator Orkim Bhd (KL:ORKIM) last year after its initial public offering.The payout, which it said is for the benefit of PNB’s unit trustholders, is part of the RM828 million gross proceeds Ekuinas realised from the sale of shares in Orkim’s IPO and the subsequent transfer of its remaining 60% stake post-IPO to PNB for long-term management, Ekuinas said in a statement announcing the release of its 2025 Impact Report on Tuesday.Ekuinas acquired Orkim for RM346.3 million in 2014 and spent more than a decade developing it into the country’s leading operator, with more than 50% market share of Malaysian-flagged vessels.Orkim made its debut on the Main Market of Bursa Malaysia on Dec 9 last year at an IPO price of 92 sen. Ekuinas, through its investment holding vehicle Tetap Kuasa Sdn Bhd, offered 300 million shares for sale in the IPO, which raised RM276 million. The remaining shares were then transferred to PNB and Amanah Saham Bumiputera as long-term anchor shareholders, marking Ekuinas’ exit from the company and the completion of what it described as the first “Bumiputera relay race” milestone.Ekuinas, established in 2009, is tasked with driving Bumiputera wealth creation and economic participation. It was initially placed under Yayasan Pelaburan Bumiputera before being transferred to PNB in July 2025.Besides Orkim, Ekuinas also completed a strategic divestment in Medispec Sdn Bhd while deploying fresh capital into Bluesify Solutions as part of its focus on high-growth sectors such as cybersecurity and digital services.As of end-2025, Ekuinas’ cumulative investment portfolio stood at 49 companies. Cumulative Bumiputera equity created amounted to RM7.1 billion, or 1.6 times invested capital, while total shareholder value created reached RM8.5 billion, or 2.0 times invested capital.Healthcare now accounts for 29% of its active portfolio, up from 24% a year earlier, as the group reduces exposure to the energy sector. Bumiputera representation in management across portfolio companies also increased to 36.9%, from 28.4% in 2024.Read the full storySam Fong/The Edge

WEDNESDAY MAY 13, 2026 11 THE EDGE CEO MORNING BRIEFHOMEKUALA LUMPUR (May 12): Palm oil prices may stay elevated amid concerns that supply may tighten in the coming months while demand remains robust, analysts said.April’s rise in output appeared to be seasonal and there are still production risks from weather-related disruption, according to CGS International and CIMB Securities. The growing supply is also expected to be absorbed by biodiesel mandates in Indonesia and Malaysia, the research houses said.Crude palm oil prices are expected to “remain higher for longer in 2026 as we see structural supply constraints and stronger biodiesel demand”, CGS International said.The research house also flagged risks from the El Niño event — a weather condition that increases heat and reduces rainfall — that could tighten supply and keep prices averaging RM4,400 per tonne for 2026.Palm oil futures slipped on Tuesday to RM4,476 on Bursa Malaysia Derivatives. Data out on Monday showed a faster-than-expected inventory build-up in April as output climbed while exports fell. Production typically begins picking up in March-April and peaks between October and November.Prices of the edible oil used in everything from lipstick to biodiesel are off highs but are still up by 11% year-to-date as governments push for a higher blend of palm-based methyl ester in biodiesel to cushion a spike in petroleum prices from geopolitical conflict in the Middle East.The implementation of such programmes in Indonesia and Malaysia, alongside higher US biofuel requirements, is expected to support demand for palm oil, said CIMB Securities.Palm oil prices to remain high as supply may tighten, demand stays robust — analystsKUALA LUMPUR (May 12): RHB Bank Bhd’s (KL:RHBBANK) proposed disposal of its general insurance arm and integration with Tokio Marine looks to be more concrete and stronger this time compared with the failed 2018 attempt, said analysts.CIMB Securities said the finalisation of the deal depends on pricing and the creation of merger synergies. “Nonetheless, prospects for a concrete deal look to be stronger this time as RHB and Tokio Marine Life, in partnership with Syarikat Takaful Malaysia [Keluarga Bhd (KL:TAKAFUL)], successfully worked out an exclusive 20-year bancassurance deal (signed Aug 1, 2025), benefitting all parties through a unified banca operating model.“... and merging the GI (general insurance) operations of RHB Insurance and Tokio Marine via an integrated partnership will create a combined market share of close to 10% in Malaysia’s general insurance market ...,” said the house in a note on Tuesday.Bank Negara Malaysia (BNM) has officially given RHB the go-ahead to commence negotiations with Tokio Marine Asia for up to a 100% sale of RHB Insurance Bhd. This will be RHB’s second attempt to sell its insurance arm to Tokio Marine after a similar transaction in 2018, where RHB proposed to sell up to 94.7% of its general insurance business to Tokio Marine, but the deal was called off.Under the latest proposal, a new enlarged general insurance entity will be creRHB’s second shot at Tokio Marine insurance deal likely to succeed — analyststheedgemalaysia.comBY JAZLIN ZAKRI theedgemalaysia.comElevated crude oil prices will drive nearterm palm oil’s near-term strength, Hong Leong Investment Bank said and maintained its ‘overweight’ call on the sector.“However, we caution that the current upcycle is likely to be front-loaded, with medium-term risks arising from supply-side adjustments in competing vegetable oils,” the house added.Malaysia CPO futures *As at 11:33am on May 12, 2026Source: BloombergMay 12, 2026RM/tonne3,0004,0005,0004,4653,975Apr 18, 2025ated, in which RHB Bank intends to hold up to a 35% stake.The approval requires all parties to conclude negotiations within six months from the date of BNM’s letter. Prior to signing any definitive agreements, the parties must also obtain approval from the Minister of Finance upon BNM’s recommendation.The prospects for a successful deal this time are stronger for several key reasons, analysts noted.For Tokio Marine, the deal would resolve its foreign shareholding issue, as foreign companies can only own up to 70% of a domestic insurer, noted Maybank Investment Bank(Maybank IB).For RHB Bank, the move would unlock the value of its insurance arm and improve its return on equity.The transaction would transition RHB from an “owning and underwriting” model to a capital-light, distribution-led bancassurance model with minority participation, noted CIMB Securities.Back-of-the-envelope calculations by Maybank IB suggest a 35% stake in the enlarged entity would yield RM103 million in net profit. This represents a 9% enhancement to RHB Insurance’s FY2025 net profit, or a 0.3% increase to RHB Bank’s group profit.Based on a price-to-book value (PBV) of 1.4 times, the cost to Tokio Marine for a 100% stake in RHB Insurance is approximately RM1.05 billion, added the house.0510152025303556789RHB Bank BhdMay 9, 2025 May 12, 2026Vol (mil) RM*RM8.35RM6.25*As at market close on May 12, 2026Source: BloombergCONTINUES ON PAGE 12

WEDNESDAY MAY 13, 2026 12 THE EDGE CEO MORNING BRIEFHOMEG3 Global plans share capital reduction to wipe out nearly RM100 mil losses Carimin proposes RM165 mil privatisation of Sealink at 41 sen a share cash offerKUALA LUMPUR (May 12): Loss-making G3 Global Bhd (KL:G3) has proposed a share capital reduction to offset RM99.3 million in accumulated losses to clean up its balance sheet.The exercise will eliminate the group’s RM95.33 million in accumulated losses as at end-March, leaving it with retained earnings of RM3.82 million. At the company level, a deficit of RM102.65 million will be reduced to RM3.5 million.In a filing with Bursa Malaysia on Tuesday, the Internet of Things (IoT) solutions provider said its issued share capital stood at RM132.3 million as at May 1, comprising 4.15 billion shares. This will be reduced to RM33.09 million upon completion of the exercise.The group said the capital reduction will allow it to better reflect the value of its underlying assets and overall financial position, while strengthening its balance sheet and credibility with stakeholders, including bankers, customers and investors.It added that wiping out accumulated losses would also place the group in a better position to resume dividend payments in the future, subject to a return to profitability and funding requirements.The exercise is expected to be completed by the first quarter of 2027.For the first quarter ended March 31, KUALA LUMPUR (May 12): Carimin Petroleum Bhd (KL:CARIMIN) has proposed to privatise Sealink International Bhd (KL:SEALINK) in a cash deal worth about RM165 million.In a filing with Bursa Malaysia, Carimin, which already owns a 19.5% stake in Sealink or 97.5 million shares, plans to buy the remaining 80.5% stake, equivalent to 402.5 million shares, at 41 sen per share through a scheme of arrangement. The offer price represents a 20.6% premium over Sealink’s last traded price of 34 sen.The board of Sealink has until May 26 to revert to Carimin with its decision on whether to put forward the proposed privatisation to shareholders.The proposal values Sealink at about 0.95 times its price-to-book value, as the 41 sen offer is slightly below its audited net asset value of 43 sen per share as at Dec 31, 2025. Sealink was also in a net cash position of RM18.13 million, with RM41.07 million in cash exceeding its RM22.94 million borrowings.Carimin said the privatisation is part of its strategy to strengthen and expand its offshore services business by combining both companies’ operations in marine BY SYAFIQAH SALIM theedgemalaysia.comBY NAVINESHKUMAR SELVAKUMAR theedgemalaysia.com2026, G3’s net loss widened to RM3.3 million from RM17,000 a year earlier, as revenue plunged 88.1% to RM379,000 from RM3.17 million, dragged by weaker contributions from its ICT division’s artificial intelligence solutions segment, including the AIS3 project to design and develop the airport integrated security and safety system for KLIA Terminal 1 and KLIA Terminal 2, and the absence of revenue from its healthcare division.Shares in G3 closed unchanged at 1.5 sen on Tuesday, giving it a market capitalisation of RM46.7 million.12 Things You Must Know About A StockClick to 12 Things You Must Know About A StockClick to 12 Things You Must Know About A StockClick to The cost to RHB Bank for a 35% stake in the enlarged entity would be roughly similar at RM1.03 billion, implying a neutral financial outcome. Meanwhile, CIMB Securities noted that the merger is expected to be neutral on RHB Bank’s capital ratios at the bank level as it is not expected to raise additional capital from shareholders for this exercise. Instead, capital investments will likely be funded through internally generated funds, the house added.CIMB Securities maintained a ‘buy’ rating on RHB Bank, with a target price of RM9.55. Maybank IB also maintains a ‘buy’ call, with an unchanged target price of RM9.40. RHB is currently trading at an undemanding FY2026 PBV multiple of 1.0 times, compared to the sector average of 1.2 times, said CIMB Securities.It also noted that the bank offers attractive dividend yields of 6.5% to 6.9% for FY2026-2027, and with solid capital buffers and healthy loan loss reserve, the house views RHB Bank as a “compelling” buying opportunity.services, vessel chartering, shipbuilding, maintenance, and offshore projects. The deal would also give Carimin ownership of Sealink’s shipyard, allowing it to expand into vessel repair, fabrication, and project execution work.The proposal also gives Sealink shareholders an opportunity to exit at 41 sen per share.The privatisation is subject to approvals from Carimin shareholders, Sealink minority shareholders, regulators, and the High Court. If completed, Sealink will become a wholly owned subsidiary of Carimin and be delisted from Bursa Malaysia.Even if the privatisation does not proceed, Carimin said it intends to raise its Sealink stake to as much as 32.5% at a maximum price of 41 sen per share, subject to takeover rules. It said it has not made any agreement with other parties to buy Sealink shares. Carimin may instead buy Sealink shares from the open market or directly from shareholders. FROM PAGE 11CARIMIN.COM

wednesday May 13, 2026 13 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): Malayan Banking Bhd (KL:MAYBANK) has launched a RM1 billion targeted financing initiative to support small and medium enterprises (SMEs) facing rising costs and tighter cash flows amid a challenging operating environment.Under the SME Perkasa programme, eligible businesses can access financing of up to RM1 million, along with a six-month deferment on principal repayments, the bank said in a statement on Tuesday.Disbursements are possible within 48 hours upon completion of documentation, supported by a fast-track credit assessment process that leverages customers’ existing transaction and banking data. This enables quicker access to funds while maintaining credit discipline.The initiative is available to the bank’s existing SME customers across 10 priority sectors, including logistics, wholesale distribution, construction, food supply chains, fabricated metals and industrial goods, petrol station dealers, agriculture, furniture, machinery importers and courier services. Businesses from other sectors may also apply, subject to assessment, said the bank.“SMEs are navigating a far more demanding operating environment today, with rising costs and tighter cash flows becoming immediate concerns. In such conditions, access to financing alone is not enough — speed of access is equally critical,” said group CEO of community financial services at Maybank Syed Ahmad Taufik Albar.Maybank rolls out RM1 bil SME financing scheme to ease cost, cash flow pressuresPUTRAJAYA (May 12): Malaysia’s labour market remained stable in March 2026, with the unemployment rate unchanged at 2.9%, supported by continued expansion in employment and labour force participation, according to the Department of Statistics Malaysia (DOSM).Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the positive economic outlook during the month enabled the country’s labour market to sustain its steady growth momentum.“The labour force increased by 0.1% to 17.31 million persons in March 2026 from 17.30 million in February, while the labour force participation rate (LFPR) remained at 70.9%,” he said in a statement on Tuesday.Mohd Uzir said the number of employed persons also edged up by 0.1% to 16.80 million persons compared with 16.79 million recorded in the previous month.The DOSM’s Statistics of the Labour Force, Malaysia, March and First Quarter 2026 also show that the number of unemployed persons rose slightly by 0.4% to 509,000 persons from 506,800 in February, leaving the unemployment rate unchanged at 2.9%.The chief statistician said employees continued to make up the largest share of total employment at 75%, increasing marginally to 12.60 million persons in March from 12.59 million previously.“On the same note, the number of own-account workers recorded a 0.3% rise to 3.14 million persons compared with 3.13 million in February,” he added.Mohd Uzir said the services sector remained the main contributor to employment growth, particularly in accommodation and food and beverage services, information and communication activities, as well as transportation and storage activities.“The manufacturing, construction and agriculture sectors also recorded increases in employment, while the mining and quarrying sector saw a slight decline,” he added.On unemployment, Mohd Uzir said actively unemployed persons, defined as those available for work and actively seeking jobs, accounted for 79.7% of total unMalaysia’s unemployment rate holds steady at 2.9% in March 2026Bernamaby Syafiqah Salim theedgemalaysia.com“With SME Perkasa, we are prioritising both, ensuring businesses can obtain the funding they need within 48 hours, alongside the advisory support to help them respond decisively and stay resilient,” he added.SME Perkasa reflects Maybank’s continued focus on SMEs, with its group community financial services loans in Malaysia growing 6.7% year-on-year in FY2025. This also supports the bank’s ROAR30 goal of mobilising RM100 billion in SME financing by 2030.Beyond this initiative, Maybank is also providing additional support for individuals and SMEs through its Financial Relief Scheme, which offers reliefs such as reduction in monthly loan repayments and restructuring of short-term business credit.On Tuesday, shares of Maybank closed up six sen or 0.54% at RM11.24, valuing the country’s largest bank by assets at RM135.95 billion.12 Things You Must Know About A StockClick to employed persons. This category increased by 0.3% to 405,800 persons in March from 404,700 in February.At the state level, Mohd Uzir said the Federal Territory of Putrajaya recorded the lowest unemployment rate at 1.3%, followed by Pahang at 1.9%, while Selangor and Melaka each posted 2%.He said Putrajaya also registered the highest LFPR at 79.2%, followed by Selangor at 78% and the Federal Territory of Kuala Lumpur at 76%.Looking ahead, Mohd Uzir said Malaysia’s labour market is expected to remain stable, supported by strong domestic fundamentals and ongoing structural transformation.“However, growth is likely to be more moderate and increasingly shaped by external developments, particularly the trajectory of the global energy crisis and geopolitical conditions.“As such, both businesses and the workforce will need to remain agile in navigating a more dynamic and uncertain economic environment,” he said.Low Yen Yeing/The Edge

wednesday May 13, 2026 14 The E dge C E O m o rning briefhomeKUALA LUMPUR (May 12): The Kuala Lumpur City Hall (DBKL) has successfully reduced flood and waterlogging hotspots across the city from more than 30 previously to only 14 through drainage upgrades and mitigation projects.Mayor Datuk Seri Fadlun Mak Ujud said the 14 remaining hotspots identified include Jalan Sultan Azlan Shah, Lebuhraya Sultan Iskandar, Bulatan Datuk Onn and Jalan Tun Sambanthan, which will be prioritised under a series of mitigation measures aimed at reducing flash flood risks in the capital.“The number of waterlogging hotspots in the capital has been successfully reduced from more than 30 locations previously to only 14 following the implementation of various mitigation projects and continuous drainage system improvements,” he said during a press conference at the DBKL headquarters on Tuesday.Also present were Federal Territories Minister in the Prime Minister’s Department Hannah Yeoh and Federal Territories Department director general Datuk Muhammad Azmi Mohd Zain.However, Fadlun said rainfall intensity is becoming increasingly difficult to manage, and during the May 6 thunderstorm, for example, rainfall at the Universiti Malaya station reached 96.5mm within a single hour, far exceeding warning levels set by the Department of Irrigation and Drainage.The mayor said the downpour triggered flash floods in areas such as Segambut Dalam, Pantai Dalam and Bukit Jalil after river levels surpassed danger thresholds and drainage systems failed to cope with the sudden surge of water.In response, the DBKL has formed a special flash flood hotspot task force that will be activated whenever rainfall exceeds 22mm per hour to clear clogged drainage inlets, often blocked by leaves and rubbish during heavy rain and thunderstorms.“Sometimes heavy rain causes dry leaves to cover drainage inlets, preventing water from flowing into the main drainage system,” Fadlun said.The city is also increasing desilting works at Sungai Toba from twice yearly to six times a year to improve the river flow, while similar efforts are planned for Sungai Kerayong.At the same time, Fadlun said the DBKL is introducing more public-facing measures to help residents react faster during bad weather.Meanwhile, Hannah said the DBKL had also introduced an early weather alert initiative through broadcasts on four radio stations, namely ERA FM, Hitz FM, MY FM and Raaga, three times daily at 9.30am, noon and 4pm.She said the alerts, delivered in Malay, English, Mandarin and Tamil, will provide location-specific forecasts for areas including Setapak and Wangsa Maju.DBKL targets 14 flood hotspots, increasing desilting works at riversKL flood retention pond capacity down to 30%, says FT ministerBernamaBernamaWe cannot continue allowing development on flood retention ponds.”Photo via Facebook/Hannah YeohYeoh said technical assessments by the Federal Territories Department of the Irrigation and Drainage (DID) showed the situation had also affected the original function of the flood retention ponds, complicated maintenance work and machinery access, and increased the risk of flash floods in existing developed areas.In this regard, she said the DBKL would not approve planning permission for any development applications on flood retention pond areas until all development conditions set by the DID to preserve the ponds’ original functions and maintenance access are met.“We cannot continue allowing development on flood retention ponds,” she said.Meanwhile, Yeoh said the Federal Territories Department had established a special task force chaired by its director general to coordinate all relevant agencies, including the Selangor DID, on flood mitigation measures in Kuala Lumpur.She said the approach was important to ensure the flood retention pond capacity in the capital would not continue to be affected, while safeguarding residents’ safety and the sustainability of the urban drainage system.KUALA LUMPUR (May 12): The flood retention pond capacity in the capital is now estimated at only about 30% of its original size following the reduction of the Jinjang and Batu flood retention ponds due to development on 17 land lots.Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh said the government viewed seriously the situation involving 70% of the 17 land lots that had been granted ownership to developers since 2015 for development purposes, resulting in the reduction of the water body capacity from its original size of 114.5 hectares.“Currently, only 34.35 hectares of the water body remain after the land ownership was granted. So our concern is that if all the developments are carried out, the water body capacity will be further reduced,” she told a press conference at the Kuala Lumpur City Hall (DBKL) Tower here on Tuesday.Also present were Kuala Lumpur mayor Datuk Seri Fadlun Mak Ujud and Federal Territories Department director general Datuk Muhammad Azmi Mohd Zain.

wednesday May 13, 2026 15 The E dge C E O m o rning briefhomePUTRAJAYA (May 12): Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki has urged all MACC personnel to give their full cooperation to the new leadership and refrain from any actions that could undermine or sabotage the agency.Concluding his service with the MACC on Tuesday, Azam said that esprit de corps within the commission was necessary to ensure it remained relevant and successful in its anti-corruption agenda.“If (MACC) officers do not cooperate, (it) means that they are sabotaging the organisation itself.“It (giving cooperation) is important. In any organisation, we must all obey the leader even if the leader is not of our choosing.“When new leadership comes in, this is what I always stress from my past experience…whoever takes over as leader, we will obey because we are still officers serving the people and the country,” he said.Speaking to reporters after a special appreciation ceremony held in his honour here on Tuesday, Azam urged MACC members to continue their efforts and take effective action in combating corruption down to the grassroots level.“The most important thing is that this organisation remains relevant as it was built by the previous leadership and I am only continuing the legacy left for the country and the people,” he said.Asked about his plans after retirement, Azam said he would continue to serve the people and the country by upholding good governance and supporting MACC’s anti-corruption efforts.“I will continue to work and serve the people as long as I am needed. I will also do my best to help in any way I can, drawing on my experience in upholding good governance and integrity,” he said.Azam also expressed his appreciation to the media for their role in disseminating information and for supporting him throughout his tenure as MACC chief commissioner.“I am truly touched by the support of all my media friends, whether from online portals, electronic media, mainstream media and so on,” he said.Born on May 12, 1963 in Negeri Sembilan, Azam holds a Bachelor of Jurisprudence (External) from Universiti Malaya and began his career as an investigating officer at the Anti-Corruption Agency (Badan Pencegah Rasuah) headquarters on May 8, 1985, before its restructuring into a commission in 2009.Throughout his 42 years in public service, Azam held several key positions in the MACC, including director of the Intelligence Division, director of the Investigation Division and deputy chief commissioner (Operations), before being appointed chief commissioner in March 2020.On April 25, His Majesty Sultan Ibrahim, King of Malaysia, consented to the appointment of former High Court judge Datuk Seri Abdul Halim Aman as the new MACC chief commissioner, effective May 13.Azam urges full support for new MACC leadershipKUALA LUMPUR (May 12): Former Melaka chief minister Tan Sri Abdul Rahim Tamby Chik has failed in his bid to recoup a RM3 million cash trust investment from My Premier Trustee (M) Bhd.High Court judge Datuk Dr Arik Sanusi Yeop Johari dismissed Rahim’s claims against trustee My Premier Trustee over the repayment of his principal and a month’s worth of returns amounting to RM37,500, according to Arik’s grounds of judgment dated May 8, 2026 sighted by The Edge.Arik ruled that Rahim failed to prove his claim against the trustee, while the trustee successfully proved its counterclaim. The court dismissed Rahim’s claim and ordered that My Premier Trustee was not responsible for the investment returns, profits or losses.He also declared that the Mareva injunction against the My Premier Trustee was wrongly obtained and set aside with immediate effect. Arik allowed My Premier Trustee’s counterclaim to proceed for assessment of damages and costs.The suit centres on Rahim’s RM3 million investment in September 2018 in a cash trust fund set up by Hong Kong-based Asia Cornerstone Asset Management Co Ltd (ACAM). The investment promised RM37,500 monthly returns for 24 months and repayment of the full RM3 million on the 25th month.Rahim received returns for 23 months totalling RM862,500, but claimed he did Ex-Melaka CM Rahim Tamby Chik fails in bid to recoup RM3 mil cash trust investmentnot receive payment for the 19th month, due on March 31, 2020, or the return of his RM3 million investment capital.The lawsuit initially named The Rain Maker MGMT Sdn Bhd, which acted as an agent for cash trust manager and administrator ACAM, and My Premier Trustee as defendants.Rahim later withdrew his claim against The Rain Maker because the company was wound up, but was allowed to refile the case in the future, if needed. The case continued only against My Premier Trustee.In the suit, Rahim claimed RM37,500 for a missed monthly return and the return of his RM3 million investment. He also asked for a 15% yearly interest on both amounts from September 1, 2020 until the court judgment, and subsequently, a 5% yearly interest (or another rate set by the court) on the total amount until it is fully paid.Arik, in his grounds of judgement, said that the investment agreement was only between ACAM and Rahim, so My Premier Trustee was not responsible for any loss incurred. Any failure to pay returns or return the investment should be claimed from ACAM or The Rain Maker, since they were the ones which managed the fund and made payments for most of the period.He noted that ACAM was not sued in this case and the claim against The Rain Maker had been withdrawn, so Rahim’s case against the trustee could not stand.theedgemalaysia.comBernamacontinues on Page 16bernama

wednesday May 13, 2026 16 The E dge C E O m o rning briefhomeThe judge also cited Clause 7.3 of the Master Service Agreement, which read that if the adviser, ACAM, is appointed by the settlor, Rahim, as provided in the declaration of trust, the trustee, My Premier Trustee, shall not be responsible for the trust fund after the funds have been disbursed to the adviser.“Therefore, based on the above reasons, this court is of the view that the plaintiff has no valid cause of action against the second defendant (My Premier Trustee) and the plaintiff’s (Rahim) claim against the [My Premier Trustee] is frivolous,” Arik said.My Premier Trustee was appointed trustee under the Declaration of Trust 1 between Rahim and My Premier Trustee. It was mandated to disburse the trust fund in accordance with ACAM’s instruction.The judge said it is the court’s view that any loss suffered by Rahim is due to ACAM’s failure to pay the return for the 19th month, and the return of the principal should be claimed from ACAM and The Rain Maker.KOTA KINABALU (May 12): The government has approved a development ceiling of RM12.02 billion for Sabah to finance 1,173 programmes and projects under the 13th Malaysia Plan (13MP), Chief Minister Datuk Seri Hajiji Noor said.However, he stressed that the substantial allocation was not merely about spending, but focused on smooth implementation, impact and ensuring that development truly reaches communities throughout Sabah.“This is the largest development allocation in the state’s history,” he said when officiating the International Construction Week (ICW) Borneo and BuildXpo here on Tuesday.His speech text was read out by Deputy Chief Minister II Datuk Seri Masidi Manjun, who is also state finance minister.Hajiji said the construction industry will play a major role in the state’s transformation, with various infrastructure developments actively underway, including roads, healthcare facilities, utilities and digital connectivity networks.“The Pan Borneo Highway in particular reflects this momentum. It is not only creating connectivity, but also opening up economic opportunities and improving access throughout the state.“Our urban centres such as Kota Kinabalu, Sandakan and Tawau are also evolving into modern and dynamic hubs that reflect the new Sabah we are building,” he said.Based on previous project implementation challenges, Hajiji said the state government’s priority over the next five years would be to accelerate the delivery system, strengthen coordination and ensure projects are implemented with lasting value.He said focus would also be given to strategies aimed at strengthening connectivity through transport networks, logistics systems and port development to drive trade and economic growth.“Other strategies include expanding access to affordable housing to ensure development translates into tangible improvements in the lives of Sabahans, as well as enhancing industry standards through better governance and greater accountability,” he said.Describing ICW Borneo as an important platform that brings together ideas and expertise, Hajiji stressed that Sabah remained open for business and ready to welcome quality investments for the state’s progress.PUTRAJAYA (May 12): The Ministry of Health (MOH) will add a hantavirus tracker to the MySejahtera application’s Disease Tracker feature if the need arises, Deputy Health Minister Datuk Hanifah Hajar Taib said.She said the enhancement would enable users to access real-time information on the disease more easily, adding that the ministry would continue to monitor the situation.“We hope the situation remains under control and subsides. Based on our experience after Covid-19, we must remain highly vigilant and do not want hantavirus to spread further,” she told reporters after attending the national-level International Nurses Day celebration here on Tuesday.Hanifah was responding to a question on whether MOH plans to include hantavirus in the Disease Tracker feature, which provides users with real-time information on nearby infection hotspots.The Disease Tracker currently includes dengue, tuberculosis (TB), measles, hand, foot and mouth disease (HFMD), Covid-19, human rabies, and animal rabies.Hanifah said although three deaths and several infections have been reported overseas, the situation remains under control and there are no indications of the virus spreading to Asia.“Through close coordination with the World Health Organization (WHO) and related agencies, we have found that the situation remains under control in the affected Western countries. At this point, Alhamdulillah, it is under control,” she said.Health Minister Datuk Seri Dr Dzulkefly Ahmad recently said that the MOH would continue to closely monitor global and regional developments to ensure Malaysia’s border preparedness and healthcare system remain at the highest level of readiness.Hantavirus is a rodent-borne virus that can infect humans through air contaminated with rat droppings, urine or saliva. Several European countries have intensified their monitoring and isolation measures following an outbreak linked to the Dutch cruise ship MV Hondius.Sabah receives record RM12 bil allocation under 13MP, says CMMySejahtera app to add hantavirus tracker if needed, says deputy health ministerBernamaBernamafrom Page 15bernama

WEDNESDAY MAY 13, 2026 17 THE EDGE CEO MORNING BRIEFWORLDWASHINGTON (May 12): US consumer prices rose at a brisk clip for a second straight month in April, resulting in the largest annual increase in inflation in nearly three years and further bolstering expectations the Federal Reserve would keep interest rates unchanged for a while.The Consumer Price Index increased 0.6% last month after surging 0.9% in March, the Labor Department’s Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the CPI rising 0.6%. Estimates ranged from a 0.4% gain to a 0.9% increase.The moderation after posting the largest increase since June 2022 was mostly mechanical. Oil prices shot above US$100 a barrel in March following strikes against Iran by the US and Israel, before pulling back to still-high levels after a ceasefire in early April.In the 12 months through April, the CPI advanced 3.8%. That was the biggest year-on-year increase since May 2023 and followed a 3.3% rise in March.The back-to-back strong inflation readings will escalate political risk for President Donald Trump and his Republican party ahead of November’s midterm elections. Trump won re-election in 2024 in large part because of his promise to reduce inflation, but Americans have soured on his handling of the economy and many blame him for the pain at the pump.The war has driven oil prices higher, which was immediately reflected in more expensive gasoline, diesel and jet fuel. Economists believe the second-round effects would be felt in the months ahead. The report followed news last week of a bigger-than-anticipated increase in non-farm payrolls in April.Financial markets expect the US central bank to keep rates unchanged into 2027. The Fed, which tracks the Personal Consumption Expenditures price indices for its 2% inflation target, last month left its benchmark overnight interest rate in the 3.50%-3.75% range.Excluding food and energy, the CPI climbed 0.4% last month, partly lifted by a one-time adjustment to rent measures after last year’s shutdown of the federal government prevented data collection in October.The BLS splits its rent survey into six panels. Each panel is sampled every six months on a rotating basis. The BLS used a method called carry-forward imputation for rent and OER to account for the missing data, which had artificially lowered the rent indexes. The so-called core CPI increased 0.2% in March.Most economists believe the passthrough from Trump’s sweeping tariffs was probably over. The US Supreme Court struck down the duties in February, lowering the effective tariff rate. Core CPI inflation advanced 2.8% year-on-year in April after rising 2.6% in March.US consumer prices increase further in April(May 12): The US and Chinese economies may still be on their way to decoupling but both are drawing strength from the same source.Just as an AI-driven boom in business investment bolstered US economic growth at the start of this year, Goldman Sachs Group Inc and Nomura Holdings Inc estimate China’s overseas sales of semiconductors, computers and other products closely related to artificial intelligence accounted for about half of China’s export growth in April.In total, Chinese shipments abroad climbed 14% from a year ago to a monthly record of US$359 billion (RM1.4 trillion), meaning companies were reeling in roughly US$500 million on average every hour. Chip exports surged 100% and sales of automatic data processing equipment and parts, which include laptops, tablets and their components, jumped 47%, the latest customs data showed. AI is also transforming the flow of goods into China, with its purchases of foreign high-tech products soaring 42%.President Donald Trump, who will arrive in Beijing this week for his long-awaited summit with Xi Jinping, has encouraged the investment bonanza that’s now juicing China’s exports and lifting other major Asian economies from South Korea to Taiwan. This year alone, giant US tech firms including Alphabet Inc and Meta Platforms Inc plan to pour as much as US$725 billion into capital expenditures, primarily on AI data center equipment.An economic divorce between the US and China is still in full swing, with tech curbs, sanctions and other hurdles in place. While Trump’s tariffs have come down from as high as 145% last year, the US share of China’s total exports has reached a historic low of near 9%, about half its peak in 2017-2018.But the explosion of trade around AI reveals the extent of integration that still pulls the world’s two biggest economies closer through the global tech supply chain.With the US leading all countries in AI investment, China has emerged as the China earns US$500 mil an hour from exports supercharged by AIworld’s largest supplier of AI-related goods last year, according to research by economists at Standard Chartered Plc, though it’s still a net importer of some critical technologies such as advanced chips.During Trump’s current term in office, China’s exports of integrated circuits have roughly doubled in value, topping US$31 billion in April for the first time ever. Though skewed by a low base effect, total shipments to the US jumped the most in over a year after double-digit declines through most of 2025.Similarly, semiconductor sales from major producers South Korea and Taiwan have also soared in recent months.US export controls have long been a sticking point in trade discussions between Washington and Beijing. Limits on China’s ability to acquire American technology fuelled a standoff last year that saw Beijing impose curbs on shipments of rare earths to US customers.The two sides unveiled a truce in October after Trump’s last meeting with Xi where the US agreed to pause for a year some of its tech-related restrictions in exchange for renewed access to rare earth elements. Those measures will likely be up for discussion later this week.While China doesn’t have the know-how to produce the most cutting-edge components because of export bans imposed by the US, it’s been gaining increasing dominance in so-called legacy chips, which tend to use older technology and remain essential to a wide array of electronics.BloombergBY LUCIA MUTIKANIReutersBLOOMBERG

WEDNESDAY MAY 13, 2026 18 THE EDGE CEO MORNING BRIEFWORLD(May 12): The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as speculation over Keir Starmer future as the prime minister renewed concern about the weakened state of Britain’s finances. Gilts fell across the board on Tuesday, with the 30-year yield briefly touching 5.81%, the highest since 1998. The pound slid 0.6% to US$1.3523. NatWest Group plc and Lloyds Banking Group plc fell at least 3% as analysts speculated that the industry faces higher taxes under a new administration. Even as Starmer rebuffed calls for his resignation in a Cabinet meeting on Tuesday, investors were analysing what his possible replacements would mean for the bond market. The chief concern is that any new Labour leader would be more left-leaning and may loosen the fiscal rules that have restrained borrowing. With the economy already facing a crunch from higher energy prices and faster inflation, the fragmentation of British politics has become another source of market anxiety. “The simple reality is that this latest pressure in a now long line of political upheavals merely adds to the view that no matter who is in power, no matter their political leaning, there does not appear to be a credible plan to restore the country’s finances,” said Matt Cairns, the head of fixed income strategy at Rabobank. “Gilts will remain under pressure, regardless of today’s outcome.”Gilts pared some of the moves later in the session. The 30-year yield rose as much UK’s 30-year yields hit 1998 levels as political crisis deepens(May 12): The Trump administration asked the US trade court to pause a ruling that declared the president’s latest 10% global tariffs unlawful while the government appeals, meaning importers would keep paying the levies while the legal fight continues.In a 2-1 decision last week, a US Court of International Trade panel found that US President Donald Trump’s use of Section 122 of the Trade Act of 1974 to impose the tariffs was invalid, although the court only immediately blocked enforcement for two companies that sued and Washington state.Despite the limited scope of the court’s order for now, the Justice Department argued in a Monday filing that thousands of importers paying the Section 122 tariffs were likely to flood the court with claims. Allowing the decision to take effect would “severely undermine” Trump’s trade agenda and syphon resources away from the “vast effort” underway to refund an earlier round of global tariffs struck down by the US Supreme Court, government lawyers wrote.US asks to keep collecting Trump’s tariffs after court lossAppeals for the Federal Circuit. The Justice Department said in Monday’s filing that if the trade court and the Federal Circuit refuse to pause the ruling, the administration is poised to make an emergency request to the Supreme Court.The justices earlier this year struck down Trump’s global tariffs under a different law, the International Emergency Economic Powers Act (IEEPA). A refund process launched in April but there is uncertainty about whether all companies that paid the IEEPA tariffs will be able to get their money back.More than 170,000 importers have paid deposits to cover new tariffs under Section 122 on 13 million entries of goods since Trump’s proclamation took effect in February, according to the government. US customs authorities collected roughly US$8 billion (RM31.44 billion) in Section 122 tariffs in March alone, according to government data analysed by We Pay the Tariffs, a coalition of small businesses.BY ZOE TILLMANBloombergBY JAMES HIRAI & ALICE GLEDHILLBloombergas 14 basis points and was trading at 5.79% as of 2.41pm in London on Tuesday. In equities, the UK moves were broadly in line with the rest of the global market. The FTSE 100 Index dipped 0.4% and the mid-cap index fell 1.3%.While bond markets around the world have sold off recently as oil prices stay stubbornly high, the combination of the UK’s heavy debt load, political infighting and a sluggish economy have left it especially vulnerable. Chancellor of the Exchequer Rachel Reeves has previously said debt costs account for around £1 in every £10 the government spends.And with borrowing costs climbing higher, the government will have to spend even more. The 20 basis-point jump in the 10-year yield since last Friday adds an estimated £2 billion (RM10.64 billion) to the debt interest bill by the end of the decade, according to Bloomberg Economics.Among the likely Labour candidates, Health Secretary Wes Streeting is seen as one of the most market friendly replacements. He has vouched for a deeper trading relationship with the European Union, citing it as the best way to grow Britain’s economy. He added that he is “really uncomfortable” with the level of taxation in the UK, saying that the government is asking a lot from individual taxpayers and businesses.“Even if Starmer resigns, the political uncertainty is unlikely to end,” said Roger Lee, the head of equity strategy at Cavendish. “To stabilise the gilt market the government may have to commit to the fiscal rules and the only candidate seemingly prepared to do that is Wes Streeting.”Angela Rayner, another possible contender, has attempted to reassure investors that the Labour Party will keep a tight grip on public finances. But she previously led a Cabinet revolt against Chancellor Rachel Reeves’ plans to slash welfare spending. She’s also faced scrutiny for her personal tax affairs, with her failure to pay enough property tax forcing her out of her role as the deputy prime minister last year.BLOOMBERGThe trade court rejected the administration’s stance that “balance-of-payments deficits” — a key criterion for imposing the Section 122 tariffs — was “a malleable phrase”. They found that Trump’s proclamation imposing the levies failed to identify that such deficits existed within the meaning of the 1974 law, instead using “trade and current account deficits to stand in the place”.The government’s appeal of that decision is pending before the US Court of UK Prime Minister Keir Starmer

WEDNESDAY MAY 13, 2026 19 THE EDGE CEO MORNING BRIEFWORLD(May 12): Donald Trump is expecting economic deals and a “wild” welcome this week in China. In reality, he’ll arrive facing an emboldened Xi Jinping, just as his own hand is constrained by the conflict in Iran.When the US president touches down in Beijing on Wednesday evening for a 36-hour summit, it’ll mark his first overseas trip since waging war in the Middle East. Over talks at the Great Hall of the People and a state dinner, followed by morning tea, the leaders will discuss trade, tariffs and the self-ruled island of Taiwan. Another agenda item, of course, is Iran. As the war extends into its third month, China appears to hold unique sway as the biggest buyer of the Islamic Republic’s oil and a strategic partner of Tehran. US Treasury Secretary Scott Bessent acknowledged that last week when he called on Beijing to help reopen the Strait of Hormuz, the closure of which has unleashed the biggest oil supply shock in modern history.The US has targeted Chinese oil refiners and firms providing satellite imagery to Iran in the meeting’s lead-up, as Trump ramps up his campaign to pressure Tehran into a deal. Washington must balance such actions against Beijing’s ace card: Rare earths, the “golden screws” of global manufacturing, which China used last year to stare down US tariffs.“Xi is coming into the summit feeling confident he has solved Trump,” said Jeremy Chan, a senior analyst at Eurasia Group and a former US diplomat, citing China’s critical minerals advantage. The November midterm elections, in which higher fuel prices threaten Republican control of Congress, also mean the US leader is chasing voter-friendly wins on agricultural purchases.“Trump needs more from this summit than Xi does,” Chan added. “And Xi knows it.”The unresolved Middle Eastern conflict could turn the meeting into a test of China’s willingness to help on Iran instead of an in-depth session on trade and economic differences.“Iran could overshadow” the gathering, said Craig Singleton, a former US diplomat and senior fellow at the Foundation for Defense of Democracies. “It complicates the optics, it raises the stakes.”Trump has repeatedly said he sees himself as having the upper hand in negotiations with US adversaries and allies, and his team has insisted the president is entering talks from a position of strength. As the world’s largest oil importer, China faces economic risks from a prolonged closure of the strait, especially if it affects global demand for its export machine.Ahead of the meeting, Bessent is stopping in Japan and South Korea, sending a public message that the US has allies in the region. He’s also sitting down with his Chinese counterpart, He Lifeng. For its part, China is expected to welcome Russian President Vladimir Putin in Beijing later this month, as Xi balances his own diplomatic relationships.Both the US and China want stability, despite their differences. The Chinese yuan marked its longest winning streak in nearly 11 weeks on Tuesday, a move the US could take as an olive branch. China also said Monday it had dismantled a cross-border drug trafficking network with the US — progress on a key issue Trump last year imposed tariffs on Beijing over.The two sides are likely to discuss an extension of their trade truce, Chinese purchases of US agricultural products and planes and follow up on fentanyl shipments. US officials on Sunday told reporters the leaders would review proposals to form a board of trade, which would govern commerce in non-sensitive products, and a board of investment.But while Trump is bringing an entourage of executives spanning major financial, technology, aerospace and agriBloombergTrump faces emboldened Xi in China as Iran war clips US leveragecultural firms, expectations are low for major breakthroughs.“Don’t expect too many deals,” said Wang Yiwei, a former Chinese diplomat and director of Renmin University’s Institute of International Affairs. “Trump coming is in itself a success and will lay a foundation for Xi’s visit to the US later this year.”For Xi, multiple Chinese analysts said the priority will be Taiwan, a democratic island the Communist Party considers its own despite never having ruled it. Xi warned Trump to proceed with care on arms sales earlier this year, after the US unveiled a record US$11 billion (RM43.3 billion) weapons package. Officials in Beijing have in recent weeks used unorthodox ways to further isolate the island’s leader.“China will push for Trump to shift policy on Taiwan, including but not just the arms sale,” said Zhu Feng, executive dean of Nanjing University’s School of International Studies, adding the issue is “the most sensitive and core of China’s interests.”Beijing has tools to retaliate — including more sophisticated military maneuvers and sanctions — if the US pushes on Taiwan, said Zhou Bo, a retired People’s Liberation Army senior colonel. Underscoring the risks to American commerce, Sanjay Mehrotra, the chief executive officer of Micron Technology Inc, is expected to travel with Trump this week — his company was hit by Chinese sanctions in 2023.Read the full story

WEDNESDAY MAY 13, 2026 20 THE EDGE CEO MORNING BRIEFWORLD(May 12): Brazil’s state-controlled oil company Petrobras fell short of earnings estimates as it held domestic gasoline prices stable during the war-driven price surge.Adjusted earnings before items, or ebitda, came in at 59.64 billion reais (RM47.71 billion) for the first quarter, Petrobras reported in a filing. That fell short of the 64.5 billion reais consensus of analysts tracked by Bloomberg and was down 2.4% from the same quarter of 2025. The company posted net income of 32.7 billion reais, above expectations.Higher oil prices are a double-edged sword for Petroleo Brasileiro SA, as the company is formally known. The Rio de Janeiro-based producer faces pressure to help contain fuel inflation and increase investment to support economic growth during an election year, eroding some of the gains from the oil rally. Petrobras generally avoids passing short-term price spikes on to consumers.Petrobras has held gasoline prices stable and only adjusted diesel once (May 12): A second Qatari liquefied natural gas (LNG) tanker appeared to have exited the Strait of Hormuz, after a shipment successfully transited the chokepoint over the weekend.The Mihzem sailed out of the Persian Gulf and is currently in the Gulf of Oman, ship-tracking data compiled by Bloomberg showed. The Singapore-flagged vessel is indicating Pakisince the start of the war in late February, amid a coordinated effort with the government to shield consumers in Latin America’s largest economy. Brazil has introduced a combination of fuel tax cuts and diesel subsidies to contain fuel inflation and imposed a temporary oil export tax to help compensate for the measures.The increase in Petrobras’s production and refining helped mitigate the impact of holding fuel prices. Its refineries ran at 95% of capacity, limiting the need for imports during the conflict in the Middle East. Petrobras is also ramping up production at Buzios, Brazil’s biggest deep-water oil field. Oil and gas production rose 16% to 3.23 million barrels of oil equivalent per day in the quarter from the year-earlier period.Petrobras has rewarded investors with rapid production growth and robust dividends. The company announced nine billion reais in shareholder payouts, below the average US$2.3 billion (RM9.04 billion) estimate of four analysts reviewed by Bloomberg.Petrobras is the last of the oil majors to report earnings during a quarter where surging prices due to upheavals from the Iran war benefited the entire industry. Exxon Mobil Corp, Chevron Corp and Saudi Aramco posted stronger-than-expected profits as higher oil and natural gas prices outweighed war-related production outages.Trading profits at Shell plc, BP plc and TotalEnergies SE rose during the conflict, helping to overcome disruptions to oil and gas production.Petrobras misses profit estimates despite wardriven oil rallySecond Qatari LNG tanker exits Hormuz after going darkPARIS (May 12): Patrick Pouyanne, the head of the energy giant TotalEnergies, will face a grilling next month over his group’s massive profits during the Middle East war from the French Parliament’s finance committee, the committee’s head said on Tuesday.The company is among several oil and gas majors facing growing calls for a windfall tax to help offset the pain of higher fuel prices on consumers.“With Total’s tax situation back in the news, I have decided to call Mr Patrick Pouyanne to appear before the finance committee. This hearing will take place on June 17 at 10am,” the commission’s president, Eric Coquerel of the hard-left France Unbowed party, posted on X.“Today, the issue of Total’s taxes — which in 2025 saw it pay zero euros in corporation tax — and the question we are asking...regarding price caps are topical”, Coquerel separately told AFP.He said he had received a “positive” response from Pouyanne, who has appeared at several parliamentary and senate hearings since the 2022 energy crisis sparked by the war in Ukraine, which helped stack up record profits for multinational oil firms.This year, TotalEnergies and a clutch of other major energy firms saw their first-quarter profits soar, in its case by 51% to US$5.8 billion (RM22.8 billion), prompting calls for more taxes on their outsize gains.Coquerel said that Pouyanne “will no doubt face some rather difficult questions, but I believe he is expecting them”.TotalEnergies has implemented a cap on fuel prices at petrol stations in France and announced special offers for May bank holidays.But Pouyanne said last week that such “socially responsible decisions” might be reversed if extra charges were brought to bear on its French operations.French Parliament summons TotalEnergies chief over Iran war ‘superprofits’AFPBY PETER MILLARD BloombergBY RUTH LIAO & WEILUN SOONBloombergstan as its destination, and draft readings showed it is fully laden.The Mihzem previously stopped sending positioning signals, an increasingly common move reflecting security concerns in the region as the Iran war drags on and a blockade of Hormuz persists. At least two tankers that loaded at Abu Dhabi National Oil Co’s Das Island facility recently went dark to carry shipments out of the waterway, Bloomberg reported earlier this month.During the course of the conflict, vessel tracking has also been complicated by spoofing — where electronic interference can falsify the apparent position of a ship. Over the weekend, a tanker called Al Kharaitiyat, which loaded LNG at Qatar’s Ras Laffan export plant earlier this month, exited the strait and sailed into the Gulf of Oman, tracking data showed.QatarEnergy didn’t immediately respond to a request for comments on Tuesday.

WEDNESDAY MAY 13, 2026 21 THE EDGE CEO MORNING BRIEFWORLD(May 12): Thailand is poised to overhaul its liberal visa rules as the government ramps up a crackdown on foreigners who illegally run businesses or commit transnational crimes.Possible measures include reducing the 60-day visa-free stay for tourists to 30 days and reviewing the criteria for categories, including investment, long-term stay, student and digital nomad visas, officials said. Visitors from 93 countries currently are eligible for the 60-day waiver.Prime Minister Anutin Charnvirakul has ordered the setting up of a working group to review the rules, government spokeswoman Rachada Dhnadirek said in a statement.Anutin visited the tourist hotspot Phuket earlier this week and pledged no tolerance for foreign “thugs” who encroach on public beaches to run illegal businesses and threaten locals. The recent arrest of a Chinese national with a cache of arms in Pattaya, another popular tourist destination, has heightened national security concerns.The review is a response to long-standing complaints from local businesses — especially in areas popular with foreign tourists — that their livelihoods are being threatened by visitors who misuse visas to engage in prohibited activities.Anutin, whose conservative Bhumjaithai party leads the ruling coalition, told reporters this week that he wasn’t looking to completely scrap free visas as Thailand can still generate enormous revenue from foreign tourists entering the country legally.“Free visas are not about unconditional entry,” Anutin said on Monday. “We need to find the best balance.”Anutin’s comments underscore the dilemma facing Thailand as it weighs how far to restrict entry without damaging economic interests, after generating nearly US$50 billion (RM196.68 billion) from 33 million foreign visitors last year. Proposals to reduce visa-free stay durations and impose an entry fee on all foreign holidaymakers have met resistance from the domestic tourism industry, which cautions that Thailand could lose out to Vietnam and Malaysia.Thai anger at misbehaving foreigners triggers visa rules reviewBENGALURU (May 12): Indonesia’s rupiah sank below 17,500 per US dollar on Tuesday amid a weakness in emerging Asian currencies as the ongoing stalemate in US-Iran peace talks kept oil prices high and risk-taking low.The Philippine peso dipped 0.9% in its third straight session of losses, while the Indonesian rupiah weakened to an alltime low of 17,525 against the US dollar.The peso and the rupiah have declined nearly 5% and 7%, respectively, since the war in the Middle East began in late February.“In Asia, the Indonesian rupiah remains under pressure... as lingering energy disruptions raise the risk of fuel shortages,” said MUFG senior currency analyst Lloyd Chan.“Indonesia’s vulnerability is heightened by relatively low crude inventory buffers, largely due to storage capacity constraints.”The 10-week-long conflict in the Middle East has battered currencies across energy-reliant Asian economies, prompting central banks and governments to scramble and roll out measures to curb currency weakness, though with limited success.Indonesia’s benchmark stock index shed as much as 2.1% to its lowest since late June 2025, with heavy losses in utilities firm Barito Renewables and chemicals firm Chandra Asri Pacific.Alongside energy shocks, Indonesia is grappling with concerns over fiscal discipline, central bank independence, and stock market regulation.Market participants are now awaiting MSCI’s May review later in the day, where the index provider is expected to maintain curbs on Indonesian stocks.This follows a market rout in January after MSCI warned that Indonesia could be downgraded to frontier-market status, citing concerns about transparency.Indonesian rupiah falls to record low on US-Iran deadlockAsia-Pacific to lead global business-travel spending in 2026BY SNEHA KUMAR ReutersBY JULIA ZHONG & ROSALIND MATHIESON BloombergBY PATPICHA TANAKASEMPIPAT Bloomberg(May 12): Asia-Pacific is set to be the world’s largest business-travel market in 2026, according to a new forecast, with the surge seen driven by the region’s expanding manufacturing and trade activity.Spending on corporate trips from the region is expected to reach US$701 billion (RM2.76 trillion) this year — just over 40% of global expenditure, according to trade group, Global Business Travel Association Inc (GBTA). That represents a 10.9% year-overyear increase, driven largely by Japan, Korea, and India.Europe is expected to be the second-largest, followed by North America, according to GBTA.“Manufacturing is the largest business-travelling” sector, said Suzanne Neufang, chief executive officer of GBTA. Trade — whether with new partners, old ones or reacquainted partners — “is one of the key drivers for confidence in our sector”.The data highlights a shifting global trade landscape, including efforts by countries such as China to diversify trading relationships amid rising costs and inflation. Despite this momentum, overall travel volumes have yet to recover to pre-Covid levels.China’s domestic business-travel market remains strong, while travel between China and the US also stays robust, driven by continued demand from American consumers for Chinese-manufactured goods, Neufang said. She added that China’s growing green-technology sector is expected to fuel further travel demand, as the country maintains a cost advantage over many competitors.Still, rising travel costs and evolving risk and safety considerations are weighing on sentiment. Geopolitical instability has become the most significant external factor shaping business travel decisions for 2026, with travellers showing reduced confidence and companies facing greater operational complexity, according to GBTA.

WEDNESDAY MAY 13, 2026 22 THE EDGE CEO MORNING BRIEFWORLDWASHINGTON (May 12): The United States’ war in Iran has cost US$29 billion (RM114.1 billion) so far, a senior Pentagon official said on Tuesday, an increase of US$4 billion from an estimate provided late last month.With just six months before midterm elections in which President Donald Trump’s Republicans may face an upUS war in Iran has cost US$29 bil so far, Pentagon says(May 12): The Bank of Japan signalled the possibility of a hike to its benchmark rate next month with a summary of views from last month’s board meeting that conveyed concerns over upside inflation risks stemming from the conflict in the Middle East.“It is quite possible that the bank will raise the policy interest rate from the next monetary policy meeting onward, even if the future course of the situation in the Middle East remains unclear,” one board member said, according to a summary of opinions from the April meeting released Tuesday.Governor Kazuo Ueda’s board voted 6-3 on April 28 to hold policy settings unchanged, an unusually divided outcome that pointed to momentum building for a rate increase when authorities next set policy on June 16. Traders see a 77% chance of a hike at that time, according to pricing in the overnight interest rate swaps market, with the summary supporting that speculation.While the summary doesn’t disclose who said what, several opinions pointed to high vigilance over upside inflation risks and the need to move rates higher even if the conflict between the US and Iran persists. Uncertainties stemming from Middle East developments were a key factor in the decision to hold last month.“If tension over the situation in the Middle East becomes prolonged, there will be a need to raise the policy interest rate to the level of the neutral interest rate at an earlier timing to prevent underlying inflation from deviating upward,” one member said.The release of the summary came on the same day US Treasury Secretary Scott Bessent was set to meet with several officials in Tokyo, including Prime Minister Sanae Takaichi, who has in the past spoken against the idea of raising interest rates. Bessent has urged the government to give the BOJ space to raise rates to avoid falling behind the curve in fighting inflation.Finance Minister Satsuki Katayama reiterated standing policy that the particulars of monetary policy should be left to the BOJ after she met earlier with Bessent.The BOJ is unique among central banks in the Group of Seven economies in that it is contending with the geopolitical shock from the Middle East while in the process of bringing rates higher to a neutral level from the current 0.75%, the lowest among major economies.BOJ signals chance of rate hike next month over inflation risksThousands of London offices ‘risk obsolescence’ under new energy efficiency rulesBY TORU FUJIOKA BloombergBY OLIVIA RUDGARD BloombergBY IDREES ALI, PHIL STEWART & DOINA CHIACU Reuters(May 12): Large swathes of London’s office property risk becoming stranded assets as landlords run out of time to embark on upgrades needed to meet new energy efficiency standards.That’s according to Robert Irving Burns, a property consultant, which says its analysis of government data shows that 78% of offices in Westminster and 71% in the City of London “will fail” to meet Minimum Energy Efficiency Standards (MEES) expected to take effect in the early 2030s.“Not only will achieving compliance require enormous capital expenditure across the board, but current market capacity — with labor shortages and financing constraints — will make achieving the early 2030s deadline virtually impossible,” Antony Antoniou, chief executive of RIB, said in a statement on Tuesday.The UK government has said that building owners in the country will need to meet tougher standards for energy efficiency in order to be able to lease commercial properties. That will likely hill battle to keep their House majority, Democrats are riding high in public opinion polls as they attempt to link the war with cost of living issues.On April 29, the Pentagon said the war at that point had cost US$25 billion.Jules Hurst, who is performing the duties of the comptroller, told lawmakers on Tuesday that the new cost included updated repair and replacement of equipment and operational costs.“The joint staff team and the comptroller team are constantly looking at that estimate,” Hurst said. He was speaking alongside Defense Secretary Pete Hegseth and Chairman of Joint Chiefs of Staff, General Dan Caine.It is unclear how the Pentagon arrived at the US$29 billion figure. A source told Reuters in March that Trump’s administration estimated the first six days of the war had cost at least US$11.3 billion.mean having an Energy Performance Certificate (EPC) rating no lower than “B” by the early 2030s.Landlords will struggle in the new regulatory environment given the “huge scope” of the challenges ahead, RIB said. In all, more than 12,000 offices across central London currently require “significant” upgrades to comply with the new regulations, it estimates. In Westminster alone, more than three-quarters of offices “risk obsolescence,” RIB warned.The EPC deadline is being viewed by some investors as an opportunity to buy commercial real estate at a discount, invest in green refurbishments and sell or lease the upgraded property at a premium. Firms engaging in such deals include Blackstone Inc, Brookfield Asset Management Ltd and Henderson Park Capital Partners, Bloomberg reported in February.The highest EPC rating of “A” is held by just 4% of office properties in the City of London, according to RIB. The lack of prime real estate with high EPC scores is already forcing potential tenants to delay plans to move into London offices, RIB said.The upshot is that the UK capital faces a future with a two-tier office market, as large numbers of landlords fail to meet the looming EPC deadline, according to RIB.“As demand increasingly concentrates on high-performing, energy-efficient buildings, the market is becoming more polarised,” it said. “Assets with strong sustainability credentials are commanding premium rents and values, while older, non-compliant stock are generating significantly lower rents and seeing longer void periods.”

WEDNESDAY MAY 13, 2026 23 THE EDGE CEO MORNING BRIEFWORLD(May 12): Sea Ltd reported quarterly earnings that topped analysts’ estimates after warding off rivals in Southeast Asia’s competitive e-commerce market rattled by economic and political challenges.Net income for the three months through March rose 6% to US$428 million (RM1.68 billion), the company said in a statement on Tuesday. Analysts predicted US$394 million on average, according to Bloomberg-compiled data. Revenue increased 47% to US$7.1 billion, also exceeding estimates.Chief executive officer Forrest Li is battling intensifying competition from ByteDance Ltd’s TikTok, Alibaba Group Holding Ltd’s Lazada and upstarts like Temu in Southeast Asia’s fast-growing online retail market of more than 675 million consumers. But even as e-commerce arm Shopee remains the region’s leading platform, Indonesia’s looming regulatory threats could potentially crimp demand in one of its biggest markets.In a speech last week, Indonesian President Prabowo Subianto outlined a surprise plan to cap the commissions platforms earn from motorcycle drivers, raising concerns the policy could spill over to logistics providers that underpin Sea’s e-commerce operations. Potential online shopping restrictions for children in Indonesia could also add to regulatory uncertainty in Southeast Asia’s biggest economy.Sea’s shares rose as much as 12% to US$95.20 in New York on Tuesday. They had fallen more than 50% since a September high as investors assessed its prospects in the cut-throat market. In November, Sea announced its first buy-back programme for as much as US$1 billion, seeking to reward investors and take advantage of the stock plunge.Sea fends off e-commerce rivals to beat profit estimates(May 12): Pop Mart International Group Ltd reported slower sales growth for the first quarter, marking a deceleration from its rapid expansion last year amid waning momentum for its blockbuster Labubu toys.Overall revenue grew as much as 80% on-year in the period ended March, with China sales increasing as high as 105%, Pop Mart said on Tuesday in an exchange filing. The company recorded an overall revenue growth of 185% and overseas sales growth of almost 300% in 2025, driven largely by the Labubu frenzy that turned the snaggle-toothed monster plush into a global collectible phenomenon.But the slowdown underscores mounting pressure on Pop Mart to reignite momentum, especially in markets including the US, as the Labubu craze cools and the company struggles to replicate that level of cultural breakout with a new product.The company is already working with Sony Pictures Entertainment Inc on a Labubu film to take the character beyond merchandise. The movie could feed into theme parks, products and other experiences, Pop Mart chief executive officer Wang Ning had said in an earlier interview.For now, year-on-year growth is expected to weaken further in the next few quarters, with full-year revenue growth seen at 13%, Morgan Stanley said on Monday, ahead of Pop Mart’s latest update. Deutsche Bank AG consumer analyst Sammi Xu expects 2026 revenue to decline 2%.(May 12): eBay on Tuesday rejected an ambitious US$56 billion (RM220.4 billion) takeover bid from the much smaller GameStop on doubts over the financing of the deal, while underscoring its turnaround efforts that have boosted growth.Analysts and investors have doubted whether the half-cash, half-stock bid from the US$12 billion videogame retailer for a company nearly four times its market value would close.eBay stock has been trading far below the offer price of US$125 per share since the bid was made earlier this month. It fell 1% to US$107 before the bell, while GameStop was down 4%.Pop Mart sales growth decelerates amid sharp overseas slowdowneBay rejects GameStop’s US$56 bil bid as ‘neither credible nor attractive’Bloomberg BY SVEA HERBST-BAYLISS & ADITYA SONI ReutersBY OLIVIA POH Bloomberg“We have concluded that your proposal is neither credible nor attractive,” eBay chairman Paul Pressler said. “eBay’s Board is confident the company, under its current management team, is well-positioned to continue to drive sustainable growth.”GameStop did not immediately respond to a request for comment.The rejection could lead to a hostile bid as GameStop CEO Ryan Cohen had said he was willing to take the offer directly to eBay shareholders, possibly by calling a special meeting.Cohen has claimed that he has a US$20 billion debt financing commitment letter from TD Bank, but it is contingent on the combined company having an investment-grade rating. Moody’s said last week the deal would be credit negative for eBay.BLOOMBERGBLOOMBERG

WEDNESDAY MAY 13, 2026 24 THE EDGE CEO MORNING BRIEFWORLD(May 12): Niklas Östberg, the chief executive officer of German food delivery company Delivery Hero SE, will step down after an activist investor that’s called for him to leave raised its stake in the company.Östberg, who co-founded Delivery Hero in 2011, will step down by March 31, 2027 at the latest, the company said in a statement Tuesday. The supervisory board aims to complete its search for a successor by year-end.His resignation comes after Prosus NV, Delivery Hero’s largest shareholder, this week said it is selling a 5% stake to Hong Kongbased Aspex Management, which will boost its holding to about 14%. Aspex has been pushing Östberg to offload more assets or leave the company. Delivery Hero shares pared earlier losses and were down 0.2% to €23.55 at 12:59pm in Frankfurt. That’s compared to over €130 at its 2021 peak.The development caps a 15-year tenure for Östberg, who was co-CEO before becoming the sole leader. Östberg used debt to fuel rapid expansion through acquisitions such as Glovo and Woowa to build a portfolio of brands and franchises in about 65 countries. Delivery Hero said last December that it’s evaluating options to improve finances and operations after Bloombergreported that the company was facing pressure from investors including Aspex to conduct a strategic review amid increasing consolidation in the food-delivery industry.In March, Aspex Management said it would try and replace the food delivery company’s management if it doesn’t push ahead with the sale of some assets. Delivery Hero that month sold its Taiwan food delivery operations to Grab for US$600 million (RM2.3 billion).Delivery Hero CEO to resign after activist investor raises stake(May 12): A scorching rally in Intel Corp shares is threatening huge losses for traders wagering that they are due to fall. But that is not stopping them from placing those bets. Since hitting a low on March 30, the chipmaker’s stock price has soared 214% through Monday’s close, adding more than US$440 billion (RM1.73 trillion) to its market capitalisation and pushing short-sellers’ paper losses above US$12 billion, according to data from S3 Partners. At the same time, short interest in Intel shares as a percentage of the company’s float, a measure of how many shares have been borrowed to bet against the stock, is near a 52-week high. “Intel’s almost like a poster child for the momentum trade right now,” said Matthew Unterman, the managing director of S3 Partners. “At some point, the momentum’s going to stall.” Betting against Intel right now comes with considerable risk, however. The stock soared 25% last week, its best showing since January 2000, and kept climbing on Monday to reach yet another record high. Shares fell as much as 5% on Tuesday.Recent gains were powered by a report that the company reached a preliminary chip-making agreement with Apple Inc. But since the start of April, Intel is the top performer in the S&P 500 Index, beating out even high-flying Sandisk Corp. “It just isn’t realistic to try and pick a top in a momentum stock. There’s no ability to control your risk,” said Brad Lamensdorf, a co-manager of the AdvisorShares Ranger Equity Bear exchange-traded fund, which shorts stocks. “The short sellers who fight price action give up a lot of alpha, and it doesn’t make for a smooth portfolio in the interim.” Shorts are looking at other chip stocks as well, as the group continues to power higher in 2026. Micron Technology Inc and Advanced Micro Devices Inc, the second and third best performers in the Philadelphia Stock Exchange Semiconductor Index since late March, have also seen upticks in short interest, S3 data showed. The chipmaker index is up 55% since the start of April, and its 14-day relative strength index recently hit its highest since 2011, a sign the group as a whole is heavily overbought. But even though the rally looks stretched, the unpredictability of momentum has some investors hesitant to test it.“I would not short any of these stocks,” said Thomas George, a portfolio manager at Grizzle Investment Management, which owns Intel shares. “This is not a sector where glory can be found for a short seller.”Of course, there is an argument that Intel’s gains aren’t just about momentum. The US government took an ownership stake in the company last summer, and artificial intelligence (AI) chip giant Nvidia Corp followed that with a US$5 billion investment in September. The shares popped in March when the company announced that its new Xeon chip is being used in one of Nvidia’s systems. And just a few weeks ago, management gave a sales forecast that blew away Wall Street’s expectations. All of which is leading Wall Street to raise its earnings projections. Analyst estimates for Intel’s 2026 adjusted earnings per share have more than doubled in just the last month, according to data compiled by Bloomberg.But that hasn’t dented Intel’s sky high market valuation. It is among the 10 most expensive stocks in the S&P 500 and the priciest chip stock in the market. The shares trade around 100 times earnings expected over the next 12 months, their highest multiple ever and roughly five times their 10-year average. By comparison, Nvidia trades at about 24 times forward earnings.“That expensive multiple could get cheap quickly if we see growth pick up,” George said. “If AI leads to more efficiency, more people will use it, which means more demand.” Even with the growing optimism about Intel’s outlook, Wall Street is hardly bullish on the stock. The average analyst price target of about US$85 implies a 34% decline from Monday’s closing price. That’s the weakest implied return among all members of the semiconductor index. Of the 53 analysts tracked by Bloomberg who cover the stock, just 17 have ‘buy’ ratings and three have ‘sell’. In the coming 12 months, there’s a decent chance that some high-momentum stocks like Intel will experience significant sell-offs, potentially as severe as 30%, George said. However, the momentum in the stock and the improvement in the company’s fundamentals make trying to time any reverse perilous.“Companies view AI as existential, so they are not going to stop investing in it, building it out,” he said. “You can’t stand in front of that as a short seller.”Intel’s US$440 bil six-week surge has short sellers circlingBY CARMEN REINICKE & RYAN VLASTELICABloombergBY YAZHOU SUNBloombergBLOOMBERG

WEDNESDAY MAY 13, 2026 25 THE EDGE CEO MORNING BRIEFWORLDWASHINGTON (May 12): US President Donald Trump on Tuesday said Cuba is asking for help and “we are going to talk”, without providing any more detail.“No Republican has ever spoken to me about Cuba, which is a failed country and only heading in one direction — down! Cuba is asking for help, and we are going to talk! In the meantime, I am off to China!” Trump wrote in a Truth Social post.Representatives of the White House and the State Department could not be immediately reached for comments. Representatives of Havana also could not be immediately reached.Trump had threatened that Cuba is “next” after the US military seized the leader of long-time Cuban ally Venezuela earlier this year and has since imposed fresh financial sanctions and expanded others. His administration has also imposed a fuel blockade, curtailed US travel and remittances to the island nation and sought to dissuade regional allies from contracting Cuban doctors.China, where Trump is travelling this week to meet Chinese President Xi Jinping, has called on Washington to immediately end its embargo and sanctions on Havana.Trump says Cuba seeking help, to hold talks(May 12): Harvard University faculty are set to begin voting on Tuesday on the boldest attempt in decades to rein in grade inflation, an issue that has drawn attention from the White House in its push to remake higher education.The proposal under consideration would limit A grades in undergraduate courses to no more than 20% of the class plus four additional students. Roughly 60% of grades were an A in the academic year ending in mid-2025 at Harvard, more than double the rate in 2006. That fell to 53% in the fall semester after Harvard urged faculty to be more disciplined.While there is significant support for tackling grade inflation, professors say there’s also vocal opposition and the measure may not pass. Eligible faculty have a week to cast their ballot, with the results expected on May 20.It is the latest effort to tackle the stubborn problem of grade inflation, which critics say makes it tougher for employers and graduate schools to evaluate students. Conservatives have also pointed to the surge in A grades as emblematic of higher education’s pivot away from merit, including by embracing diversity, equity and inclusion. The White House included grading reform in the proposed compact that it asked select schools to sign last fall in exchange for priority access to federal funding.Previous crackdowns by Princeton University and Wellesley College on high grades failed over a lack of collective action. Universities are incentivised to keep grades high to maximise post-graduation prospects for their students and stay competitive in the face of a looming demographic cliff. If only a few enact grading discipline, their students alone suffer.But the Harvard vote has the potential to be a catalyst for wider changes. If one of the country’s best known and most prestigious universities declares grade inflation a problem, it could inspire other schools to do the same, said May Mailman, a former senior policy adviser in the Trump administration who helped lead its pressure campaign against Harvard and other universities before stepping down last year.Harvard put forward the proposed cap in February, after a report last fall found that the percentage of A grades continued to climb despite years of warnings from school officials. Supporters argue grading has gotten absurd enough that there is finally appetite for change. At Harvard last year, graduating seniors needed a 3.989 GPA to earn summa cum laude honors. An award for the top GPA, traditionally given to one senior, was a 54-way tie.BRUSSELS (May 12): The European Union (EU) is working on new rules to protect children from the addictive designs of social media such as TikTok, Meta and X, EU Commission president Ursula von der Leyen said on Tuesday.“Sleep deprivation, depression, anxiety, self-harm, addictive behaviour, cyberbullying, grooming, exploitation, suicide. Risks are multiplying fast,” von der Leyen said in a speech in Copenhagen.“These risks are the reality of the digital world. They are not accidental. They are the result of business models that treat our children’s attention as a commodity.”Von der Leyen said the Commission will specifically target “addictive and harmful design practices” in its Digital Fairness Act (DFA), due to be proposed towards the end of the year.The DFA would also set strict limits on the use of artificial intelligence in social media, she said, while she advocated for a minimum age for social media access.“The question is not whether young people should have access to social media, the question is whether social media should have access to young people,” she said.The new regulation will strengthen and expand the Digital Services Act (DSA) which requires large platforms to do more to tackle illegal and harmful content, she said.Under these rules, the Commission is already investigating TikTok, X and Meta Platforms’ Instagram and Facebook.“We are taking action against TikTok and its addictive design, endless scrolling, autoplay and push notifications. The same applies to Meta, because we believe Instagram and Facebook are failing to enforce their own minimum age of 13,” Von der Leyen said.Harvard students furious over plan to crack down on gradesEU chief turns up heat on social media’s ‘addictive’ designBY GREG RYAN BloombergBY INTI LANDAURO ReutersBY SUSAN HEAVEY & JACOB BOGAGE ReutersBLOOMBERG

wednesday May 13, 2026 26 The E dge C E O m o rning briefMARKETSTop 20 active stocksWorld equity indicesTop 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)GENETEC TECHNOLOGY BHD 259.91 0.110 0.360 33.33 284.9OPPSTAR BHD 184.20 0.125 0.805 159.68 516.3V.S INDUSTRY BHD 178.44 0.000 0.210 -56.70 829.0ZETRIX AI BHD 164.59 -0.030 0.825 1.85 6,648.0SMRT HOLDINGS BHD 115.38 -0.005 0.275 -48.60 125.9TOP GLOVE CORPORATION BHD 98.27 -0.005 0.850 31.78 6,985.1SFP TECH HOLDINGS BHD 91.17 0.005 0.195 39.29 468.0GIIB HOLDINGS BHD 86.65 0.065 0.205 173.33 133.3TT VISION HOLDINGS BHD 86.21 -0.010 0.320 52.38 153.5DAGANG NEXCHANGE BHD 84.81 0.025 0.345 7.81 1,199.5PEGASUS HEIGHTS BHD 51.80 0.000 0.005 0.00 54.1TANCO HOLDINGS BHD 50.69 0.020 1.690 45.69 10,366.5SNS NETWORK TECHNOLOGY BHD 43.23 0.035 0.515 0.98 877.6NATIONGATE HOLDINGS BHD 38.33 -0.025 0.770 -12.20 1,753.8AIRASIA X BHD 37.07 -0.040 1.200 -31.03 4,033.0D & O GREEN TECHNOLOGIES BHD 33.14 0.015 0.500 -33.33 619.7OCR GROUP BHD 31.17 0.000 0.045 12.50 150.3JCY INTERNATIONAL BHD 30.26 0.005 0.370 13.85 795.8GLOBETRONICS TECHNOLOGY BHD 29.92 0.035 0.290 32.42 207.3NEXG BHD 28.19 0.010 0.295 5.36 1,095.0Data as compiled on May 12, 2026 Source: BloombergNAME CLOSE CHANGE VOLUME YTD MARKET(%) (‘000) CHANGE CAP(%) (RM MIL)HONG SENG CONSOLIDATED BHD 0.010 100.00 8,588.10 100.00 56.2GIIB HOLDINGS BHD 0.205 46.43 86,650.70 173.33 133.3GENETEC TECHNOLOGY BHD 0.360 44.00 259,906.30 33.33 284.9JADI IMAGING HOLDINGS BHD 0.050 42.86 2,198.00 25.00 70.0KRONOLOGI ASIA BHD 0.130 36.84 20,833.60 -23.53 115.8BSL CORPORATION BHD 0.020 33.33 101.10 33.33 38.7BIOALPHA HOLDINGS BHD 0.020 33.33 1,110.10 -33.33 28.1SALUTICA BHD 0.130 30.00 25,865.30 -33.33 61.0MMAG HOLDINGS BHD 0.030 20.00 1,677.00 -57.14 69.6MAXLAND BHD 0.030 20.00 70.20 -14.29 48.1RICHTECH DIGITAL BHD 0.220 18.92 3,294.80 7.32 44.5OPPSTAR BHD 0.805 18.38 184,196.00 159.68 516.3MENTIGA CORPORATION BHD 0.740 17.46 185.70 51.02 51.8KUMPULAN JETSON BHD 0.105 16.67 2,322.00 -12.50 43.8NOVA TECHNOLOGY SERVICES BHD 0.035 16.67 9,700.90 -30.00 31.4HB GLOBAL LIMITED 0.035 16.67 78.00 -12.50 27.4DGB ASIA BHD 0.035 16.67 330.00 0.00 11.6WAVEFRONT BHD 0.145 16.00 27,680.30 -25.64 174.6MSB GLOBAL GROUP BHD 0.080 14.29 1,302.30 -5.88 48.8SOUTH MALAYSIA INDUSTRIES BHD 0.200 14.29 0.10 0.00 42.0Data as compiled on May 12, 2026 Source: BloombergNAME CLOSE CHANGE VOLUME YTD MARKET(%) (‘000) CHANGE CAP(%) (RM MIL)XIDELANG HOLDINGS LTD 0.005 -50.00 113.30 -50.00 10.6PERMAJU INDUSTRIES BHD 0.005 -50.00 220.20 -50.00 9.8PUC BHD 0.015 -25.00 0.60 0.00 45.7TECHNA-X BHD 0.015 -25.00 115.00 -62.50 4.2XOX NETWORKS BHD 0.020 -20.00 154.20 -33.33 22.7AE MULTI HOLDINGS BHD 0.060 -20.00 1.50 33.33 13.0PARKWOOD HOLDINGS BHD 0.065 -18.75 1.00 0.00 38.7ARB BHD 0.025 -16.67 230.40 -16.67 31.2AIZO GROUP BHD 0.035 -12.50 105.00 -30.00 69.9KEY ASIC BHD 0.035 -12.50 27,148.40 0.00 49.1DNONCE TECHNOLOGY BHD 0.035 -12.50 320.00 16.67 30.4LKL INTERNATIONAL BHD 0.035 -12.50 56.10 0.00 13.6MULTI-USAGE HOLDINGS BHD 0.355 -11.25 2.00 1.43 20.0VIZIONE HOLDINGS BHD 0.080 -11.11 451.30 -44.83 44.2EVD BHD 0.040 -11.11 73.30 -20.00 18.0DATAPREP HOLDINGS BHD 0.085 -10.53 21,112.80 0.00 73.1JIANKUN INTERNATIONAL BHD 0.050 -9.09 395.30 42.86 28.4TOYO VENTURES HOLDINGS BHD 0.235 -7.84 5,951.90 -11.32 39.0ABM FUJIYA BHD 0.240 -7.69 41.80 -25.00 43.2REVENUE GROUP BHD 0.065 -7.14 665.80 30.00 39.3Data as compiled on May 12, 2026 Source: BloombergNAME CLOSE CHANGE VOLUME YTD MARKET(RM) (‘000) CHANGE CAP(%) (RM MIL)Nestlé (Malaysia) Bhd 99.740 -1.460 150.10 -11.71 23,389.0BATU KAWAN BHD 21.080 -0.320 20.10 10.84 8,422.2PETRONAS DAGANGAN BHD 20.320 -0.260 522.10 3.99 20,187.0HONG LEONG BANK BHD 22.100 -0.240 520.70 1.13 47,906.6UNITED PLANTATIONS BHD 30.300 -0.220 436.60 3.34 18,918.0DUTCH LADY MILK INDUSTRIES 32.820 -0.200 40.60 5.87 2,100.5HONG LEONG FINANCIAL GROUP 18.940 -0.160 41.00 0.43 21,734.0KLCC PROP&REITS-STAPLED SEC 9.000 -0.150 117.00 5.47 16,248.0KUALA LUMPUR KEPONG BHD 20.860 -0.140 215.00 6.42 23,284.0NEGRI SEMBILAN OIL PALMS BHD 5.400 -0.130 34.80 -5.26 379.1AJINOMOTO (M) BHD 12.440 -0.120 48.80 -8.93 756.3MI TECHNOVATION BHD 3.700 -0.100 5,448.40 28.47 3,330.0KESM INDUSTRIES BHD 4.560 -0.100 130.80 52.00 196.1IOI PROPERTIES GROUP BHD 4.380 -0.080 5,330.00 65.91 24,116.9LPI CAPITAL BHD 14.780 -0.080 54.20 2.40 5,888.1SARAWAK OIL PALMS BHD 4.360 -0.080 416.70 15.96 3,934.5KPJ HEALTHCARE BHD 3.420 -0.070 3,905.30 27.90 15,481.0RALCO CORPORATION BHD 1.010 -0.070 5,730.70 26.25 51.3FRASER & NEAVE HOLDINGS BHD 29.900 -0.060 82.40 -14.92 10,966.7IJM CORPORATION BHD 2.260 -0.060 17,308.20 -0.44 8,243.5Data as compiled on May 12, 2026 Source: BloombergNAME CLOSE CHANGE VOLUME YTD MARKET(RM) (‘000) CHANGE CAP(%) (RM MIL)MALAYSIAN PACIFIC INDUSTRIES 42.260 1.260 2,489.70 31.08 8,869.7UMS INTEGRATION LIMITED 8.000 0.880 265.60 127.53 7,105.3HONG LEONG INDUSTRIES BHD 19.300 0.400 130.20 18.14 6,328.5KELINGTON GROUP BHD 6.530 0.330 5,919.90 27.59 5,619.4UWC BHD 5.730 0.250 5,815.60 39.08 6,322.1PRESS METAL ALUMINIUM HOLDINGS 8.990 0.190 12,799.20 26.60 74,074.2PENTAMASTER CORPORATION BHD 4.430 0.180 12,030.20 14.18 3,155.6SAM ENGINEERING & EQUIPMENT 4.380 0.180 2,123.80 17.43 2,965.2UNISEM (M) BHD 3.910 0.160 12,523.10 27.82 6,307.1MALAYSIA SMELTING CORPORATION 2.180 0.160 4,903.80 36.25 1,831.2PETRONAS CHEMICALS GROUP BHD 5.490 0.140 8,917.80 52.97 43,920.0VITROX CORPORATION BHD 6.020 0.140 3,952.10 51.26 11,406.8TONG HERR RESOURCES BHD 1.400 0.130 139.30 -2.78 220.4OPPSTAR BHD 0.805 0.125 184,196.00 159.68 516.3MALAYAN CEMENT BHD 7.350 0.120 799.20 -3.28 10,253.8GENETEC TECHNOLOGY BHD 0.360 0.110 259,906.30 33.33 284.9MENTIGA CORPORATION BHD 0.740 0.110 185.70 51.02 51.8HEINEKEN MALAYSIA BHD 22.880 0.100 104.80 -0.35 6,912.0GOPENG BHD 0.870 0.100 12.80 13.73 351.0IHH HEALTHCARE BHD 9.030 0.090 5,139.80 3.89 79,790.5Data as compiled on May 12, 2026 Source: BloombergCLOSE CHANGE CHANGE(%)CLOSE CHANGE CHANGE(%)DOW JONES* 49,704.47 95.31 0.19S&P 500* 7,412.84 13.91 0.19NASDAQ 100* 29,320.66 85.67 0.29FTSE 100* 10,269.43 -55.37 -0.54AUSTRALIA 8,670.68 -31.08 -0.36CHINA 4,214.49 -10.53 -0.25HONG KONG 26,347.91 -58.93 -0.22INDIA 74,559.24 -1456.04 -1.92INDONESIA 6,858.90 -46.72 -0.68JAPAN 62,742.57 324.69 0.52KOREA 7,643.15 -179.09 -2.29PHILIPPINES 5,971.98 -14.87 -0.25SINGAPORE 4,946.00 3.23 0.07TAIWAN 41,898.32 108.26 0.26THAILAND 1,483.56 -5.73 -0.38VIETNAM 1,901.10 5.60 0.30Data as compiled on May 12, 2026 * Based on previous day’s closing Source: BloombergCPO RM 4,483.00-33.00 OIL US$ 107.052.84 RM/USD 3.934 RM/SGD 3.0913 RM/AUD 2.8425 RM/GBP 5.3278 RM/EUR 4.6215