The Edge 17 Jan 2023 Selasa

CEOMorningBrief TUESDAY, JANUARY 17, 2023 ISSUE 509/2023 www. theedgemarke ts. com WORLD SPLIT INTO RIVAL ECONOMIC BLOCS THREATENS ACTION, IMF SAYS p20 HOME: HSBC expects KLCI to end 2023 at 1,570, says recovery may not match regional markets p4 PLS Plantations plans large-scale durian project with Japanese investors via RM371 mil JV p7 Revenue Group’s Ng brothers strike back by calling for EGM to remove current board p10 Zahid’s Yayasan Akalbudi trial vacated until April 10 for undisclosed reasons p17 CJ of Sabah, Sarawak Abang Iskandar likely to be named new Court of Appeal president today p18  WISHES YOU SCAN ME Report on Page 2. Report on Page 3. Govt brings forward March cash aid with RM1.67 bil payout today amid cost-ofliving crunch BLOOMBERG THE EDGE FILE PHOTO Anwar wants civil servants to criticise any breaches of law by govt

tuesday january 17, 2023 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Govt brings forward March cash aid with RM1.67 bil payout today amid costof-living crunch KUALA LUMPUR (Jan 17): Prime Minister Datuk Seri Anwar Ibrahim announced yesterday that the payment of phase one of “Sumbangan Tunai Rahmah” (STR) to 8.7 million people in the B40 group, worth RM1.67 billion, will be credited into the accounts of the registered recipients in stages from today (Jan 17). He said the payment of STR phase one has been brought forward to January from the initial plan in March, to ease the people’s costs of living burden. The STR payment is made according to categories with four million households receiving RM300 each, while 1.2 million senior citizens without spouses and 3.5 million single individuals would each receive RM100. Bernama home “STR recipients in rural areas including Sabah and Sarawak, with or without bank accounts, will also receive this payment on the same date,” said the prime minister in a statement. Anwar, who is also finance minister, said that recipients who do not have a bank account can cash the payment out at Bank Simpanan Nasional (BSN) branches beginning today. Recipients can check their status from today and further information regarding the payment is available at the frequently asked questions (FAQ) section of STR’s official portal. Meanwhile, Anwar said that the STR is a rebranding of the cash aid programme for the B40 income group under the finance ministry, and it will continue to be improved. He said the unity government emphasises the “rahmah” (compassion) approach in looking after the plight of the needy, especially the vulnerable groups. As such, the prime minister said the government introduced the “Payung Rahmah” concept as a parent to initiatives, to help the groups face the costs of living challenges. Read also: EPF members have ‘too little’ left for another round of special withdrawals bloomberg Cost of living, inflation, debt crises top 3 global risks for Malaysia — WEF by Isabelle Francis theedgemarkets.com KUALA LUMPUR (Jan 16): Cost-ofliving, rapid or sustained inflation, and debt crises were identified as the top three global risks for Malaysia in the Executive Opinion Survey (EOS) accompanying the Global Risks Report 2023 by the World Economic Forum (WEF). According to the report, cost of living is the top risk globally, with the greatest impact (severity) over a two-year period. Meanwhile, the global risk that ranked first by severity over the long term (10 years) is failure to mitigate climate change. Global risk is defined as the possibility of the occurrence of an event or condition which, if it occurs, would negatively impact a significant proportion of global gross domestic product, populations or natural resources. “As 2023 begins, the world is facing a set of risks that feel both wholly new and eerily familiar. We have seen a return of “older” risks — inflation, cost-of-living crises, trade wars, capital outflows from emerging markets, widespread social unrest, geopolitical confrontation, and the spectre of nuclear warfare — which few of this generation’s business leaders and public policymakers have experienced,” read the report. According to the report, these are being amplified by comparatively new developments in the global risks landscape, including unsustainable levels of debt, continues on Page 3

tuesday january 17, 2023 3 The E dge C E O m o rning brief home a new era of low growth, low global investment and de-globalisation, a decline in human development after decades of progress, rapid and unconstrained development of dual-use (civilian and military) technologies, and growing pressure of climate change impacts and ambitions in an ever-shrinking window for a transition to a 1.5°C hotter world. The EOS report complements the WEF’s Global Risks Perception Survey (GRPS), which recorded responses from over 1,200 experts across academia, business, government, the international community, and civil society between Sept 7 and Oct 5, 2022. The EOS identifies risks that pose the most severe threat to each country over the next two years, as identified by over 12,000 business leaders in 121 economies. When considered in context with the GRPS, this data provides insights into local concerns and priorities, and points to potential “hotspots” and regional manifestations of global risks. The report said governments will continue to face a dangerous balancing act between protecting a broad swathe of their citizens from an elongated cost-of-living crisis without embedding inflation and meeting debt servicing cost, as revenues come under pressure from an economic downturn, an increasingly urgent transition to new energy systems, and a less stable geopolitical environment. “The resulting new economic era may be one of growing divergence between rich and poor countries, and the first rollback in human development in decades,” it added. Cost of living ranked most severe global risk Even before the Covid-19 pandemic, prices of basic necessities — non-expendable items such as food and housing — were on the rise. Costs further increased in 2022, primarily due to continued disruptions to the flows of energy and food from Russia and Ukraine. To curb domestic prices, around 30 countries introduced restrictions, including export bans, on food and energy last year, further driving up global inflation. The FAO Price Index hit the highest level since its inception in 1990 in March last year. Energy prices are estimated to remain 46% higher than average in 2023 relative to January 2022 projections. The relaxation of China’s Covid-19 policies could drive up energy and commodity prices further, and will test the resilience of global supply chains if policy changes remain unpredictable as infections soar. Continued supply-chain disruptions could lead to sticky core inflation, particularly in food and energy. This could fuel further interest rate hikes, raising the risk of debt distress, a prolonged economic downturn, and a vicious cycle for fiscal planning. Despite some improvement during the pandemic, household debt has been on the rise in certain countries. PUTRAJAYA (Jan 16): Prime Minister Datuk Seri Anwar Ibrahim on Monday said that civil servants should criticise actions by the unity government which are found to be in violation of the law. Speaking at a monthly meeting with staff of the Prime Minister’s Department here, Anwar, who is also finance minister, said he should also not be spared. “My emphasis is on enforcement. What I learned, especially at the Ministry of Finance, there are many questionable files. “To blame the officers...if there’s a ‘minute’ from the minister or the prime minister, the officer has to comply with, but I have given clear instructions that if there is a ‘minute’, even from the prime minister himself, if there is a violation of the law, I have to be informed first,” he said. Also present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Minister in the Prime Minister’s Department (Sabah, Sarawak and Special Functions) Datuk Armizan Mohd Ali, Minister in the Prime Minister’s Department (Religious Anwar wants civil servants to criticise any breaches of law by govt Affairs) Datuk Dr Mohd Na’im Mokhtar and Chief Secretary to the Government Tan Sri Mohd Zuki Ali. Meanwhile, Anwar said the posts of Senior Private Secretary (SUSK) and Principal Senior Private Secretary (KSUK) in the Prime Minister’s Office, Deputy Prime Minister’s Office and the cabinet ministers’ offices should be filled by Administrative and Diplomatic Officers (PTD). “This is to ensure coordination, [but] it will only work if there is full cooperation Bernama from Page 2 Zahid Izzani/TheEdge from colleagues,” he said and expressed his gratitude to civil servants for their enthusiasm and response to his criticisms. The prime minister said the country will not progress if there are too many leakages in the administration. “As I have mentioned, contracts with commission that is too high or the price is not reasonable. I am not pointing fingers at anyone. It’s a fact. You cannot succeed as a nation if there are so many leaks,” he added. On the unity government cabinet minister retreat at Seri Perdana Complex on Sunday, which was also attended by several department heads, Anwar said it was to bolster consensus and solidarity between the national executive leaders and civil servants. He said a similar retreat would be held with the Malaysian Anti-Corruption Commission and the Attorney General. Read also: Anwar: I won’t announce new projects without scrutinising them

tuesday january 17, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): The Malaysian equities market is expected to extend its recovery in 2023, but the momentum is not likely to be on par with its regional peers based on past track record, says HSBC Asia Pacific head of equity strategy Herald van der Linde. “Malaysia is, in equities, a very stable market. When the market comes down, [Malaysia] is where you want to be, because it wouldn’t fall as much as the other markets. “But if the market is in a recovery, which we expect it will be in 2023, Malaysia [won’t] catch up as much either. It is much more stable as compared to some of the other markets across the region, such as Thailand and China,” he said at the HSBC Asian Outlook 2023 virtual media briefing on Monday (Jan 16). Van der Linde is forecasting the KLCI to end 2023 at 1,570, while having an “underweight” rating for Malaysian equities. He expects the Indonesian and Indian markets to have the “most interesting growth story” across the region, driven by improving domestic consumer and financial sectors. Nonetheless, he noted that India is by far the most expensive market across the region and could continue to face foreign fund outflows in the near term. “A lot of funds were significantly overweight in India. Into 2022, they have reduced that already; we have seen outflows from India, that might continue……I suspect a lot of that was in order to fund purchases in China. “But we continue to be quite positive on the Indian equities market. I can understand that maybe in the near term, these outflows may continue to fund these purchases but in the long run, with the outlook and earnings growth and also the sustainability in earnings growth that we see across the region, India is unmatched in that regard,” he said. In terms of fixed income assets, HSBC Asia Pacific rates strategist Pin Ru Tan said Malaysia’s government bonds are expected to have a more neutral performance this year in a peaked interest rates and US dollar environment. “For several months in 2022, we were actually positive on Malaysia government bonds. As compared to a lot of emerging markets, Malaysia’s inflation pressure was generally better contained last year, and we looked a lot from a real yield perspective in deciding what government bonds we want to buy. “With relatively contained inflation, Malaysia’s real yield stood out back in 2022. “This year, with the peaked rate and peaked dollar move, we are really looking for more spread compression opportunities to get more Alpha. In that regard, because of comparatively better performance for Malaysian bonds last year, we are expecting more neutral performance [in 2023],” she said. Malaysia’s trade to outperform peers amid slowdown Although Malaysian equities and bonds appear less attractive than its regional by Chester Tay theedgemarkets.com HSBC expects KLCI to end 2023 at 1,570, says recovery may not match regional markets peers, the country remains one of the top choices for businesses to diversify their supply chain, which will help support the economy in times of downturn, said HSBC’s co-head for global research Asia and chief Asia economist Frederic Neumann. “It is clear to us that even in a global trade slowdown, economies like Malaysia might have an outperformance on their trade. Their trade may contract, but not as much as their trading partners; this is kind of a sign that they are tapping into new production capacity because they are winning these supply chains,” he said. “Malaysia is one of the key beneficiaries of supply chain rejigging that we see across Asia. Extraordinarily high amount of foreign direct investment continue to pour into the economy, and it is really a virtuous cycle here with more foreign direct investment, expanding the capacity, connecting Malaysia to international supply chain, particularly on the electronic side. “Of course, Malaysia is also continuously benefiting from the high energy prices and commodities in general,” he told reporters at the briefing. HSBC is expecting Malaysia’s economic growth to decelerate to 4.0% this year, from an estimated 8.4% last year. “However, 4.0% growth these days is still a very robust growth rate indeed, and that will actually mean that the central bank, BNM, will have to raise interest rates into the second quarter to 3.5%, to [contain] some of these lingering price pressures,” said Neumann. continues on Page 6 Low Yen Yeing/the edge

tuesday january 17, 2023 5 The E dge C E O m o rning brief

tuesday january 17, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): Malaysian equities appear to have exhausted their function as defensive play in 2023, says CLSA Research, noting that the overall emerging market is expected to see better prospects during the year, offering more opportunities for investors to shift their focus away from Malaysia. “Last year Malaysia offered sanctuary to investors fleeing growth/tech and seeking refuge in defensive, domestically oriented net commodity exporters,” said the research firm. But currently Malaysia offers poor short- and long-term earnings per share (EPS) growth, while the ringgit revaluation has largely been done since November last year. Also, Malaysian equities are “expensively valued” and have priced in the recent positive political progress, said CLSA in a report dated last Friday (Jan 13). The research firm listed 10 reasons for investors to take profits in Malaysian equities this year: • Malaysia rarely outperforms alongside the overall emerging market • Malaysian equities offerlowertrend EPS growth than the overall emerging market • Oil price action no longersupports Malaysian equity momentum • The market’s real gross domestic products (GDP) growth is no longer exceptional for 2023 • The pace of ringgit strengthening since November will moderate • CLSA Malaysia macro model offers less upside than for the overall emerging market • The weakest 2024 earnings growth projection in emerging Asia • Malaysia’ssuperior dividend yield is now much less compelling • Market enthusiasm surrounding the 15th general election results is priced in • Strongest net foreign purchases in five years will likely abate by Chester Tay theedgemarkets.com Malaysia’s trade slowdown to be cushioned by China’s reopening Neumann is also optimistic that with China’s pivot from the Zero-Covid-19 policy, the country’s economy is expected to stabilise by the second quarter, paving ways for it to record a 5% growth in gross domestic product this year. However, he does not expect the reopening of China to be capable of offsetting the weaker growth in the US and Europe, particularly the demand cycle for electronics. “China’s reopening is a positive for exports in Asian economies. [China] itself is probably two-thirds the size of the European and US export markets put together. So, it doesn’t quite fully offset weaker growth in the US and Europe, but it goes a long way towards supporting growth. “Having said that, China’s demand will not help to turn around the electronic cycle, in which many Asian economies depend, whether it is Philippines, Korea, Taiwan, Malaysia or Vietnam. There are still exposure to weaker global electronics demand; even with China’s reopening, you cannot fully offset that particular drag,” he said. Neumann noted that there is also a rising number of Chinese companies investing in the Malaysian economy, particularly in the manufacturing sector, which is expected to support domestic economic growth. “With the reopening of the Chinese economy, one would expect more bilateral travel benefitting [not only] the tourism industry, but also bilateral investment; so it is that particular cordial Malaysia-China (relationship) on trade and investment which will likely benefit the economy,” he said. Read also: Malaysia set for strong growth in twoway LNG trade, says Fitch Solutions OCBC Bank cautious about Malaysia’s economic outlook, expects slower consumption, exports from Page 4 CLSA noted that over the last 15 years, Malaysia had only outperformed the MSCI World concurrently with the overall emerging market in 2010. Additionally, over the past 30 years, Malaysia is deemed a “perennial underperformer” by delivering 3.4% of compounded annual growth rate for US dollar EPS, less than half of the 7.4% for the overall emerging market, the researcher said. “Thus, it has typically paid to maintain a negative regional bias towards Malaysian equities and we see no clear reason why this particular distinction should change,” it said. Although elevated oil prices have been supportive to Malaysian equity momentum, CLSA noted that the impact faded through the second half of 2022, and this is expected to remain the case for this year. After Malaysia posted stellar GDP growth in 2022 (estimated to be 8.4%, second only to Saudi Arabia’s 8.8% across mainstream emerging markets), CLSA said the country’s economic growth is forecast to decelerate to 4% this year (below that of India, the Philippines, Indonesia and China). “As the market typically discounts earnings estimates a year out, focus will inevitably begin to shift towards 2024 consensus EPS growth projections for which Malaysia’s are currently the weakest across the emerging Asia region at 6%. “Malaysia’s relative dividend yield fell from twice that of overall EM at the end of 2021 to a less impressive 15% superior to EM by year-end 2022, in line with the 20-year average,” said CLSA. The firm noted that although foreign ownership in Malaysian equities remains close to a 16-year low, foreign appetite is expected to diminish through 2023 as investors focus on those areas in North Asia where exposure has been aggressively reduced over the past three years. “Last year’s global flight from tech or growth sectors and appetite for energy plays and more domestic or defensive sanctuaries were reflected in foreign investor net rotation away from North Asia towards Brazil, Saudi Arabia and Asean markets. “However, we view this as 2022’s story and our more constructive outlook for 2023 involves re-engaging oversold deep value cyclical opportunities—essentially selling last year’s winners and rotating into last year’slosers. Ourrecommendation for a rotation out of India and Malaysia into China and Korea reflects this narrative,” it said. CLSA offers 10 reasons to take profits in Malaysian equities in 2023 CLSA noted that over the last 15 years, Malaysia had only outperformed the MSCI World concurrently with the overall emerging market in 2010.

tuesday january 17, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): Two directors of Boustead Heavy Industries Corp Bhd (BHIC) — Datuk Norliza Abdul Rahim and Datuk Nasarruddin M Zin — have resigned to pursue other interests, effective Jan 16. The two joined the group’s board as independent and non-executive directors on Sept 1, 2020 (Norliza) and Jan 27, 2022 (Nasarruddin). In November last year, BHIC announced the resignation of Datuk Seri Mohammed Shazalli Ramly as its director, following his departure as the group managing director of parent company Boustead Holdings Bhd, after two years of service. BHIC has been embroiled in the fiasco of the RM9 billion littoral combat ship (LCS) project. Of the six ships ordered, not a single one has been delivered, despite the government’s RM6 billion injection into the project. It posted a net profit of RM564,000 for the third quarter ended Sept 30, 2022 (3QFY2022), down 95% from 3QFY2021’s RM11.78 million, as revenue dropped due to variations in milestones attained for the Royal Malaysian Navy’s submarine contracts. Revenue for 3QFY2022 fell 17% to RM35.9 million from RM43.3 million a year earlier. For the cumulative nine-month period, BHIC’s net profit dropped 72% to RM6.56 million from RM23.17 million, as revenue was down by 6% to RM103.2 million from RM109.42 million. BHIC was last traded at 37 sen, with a market value of RM91.93 million. Two BHIC directors resign to pursue other interests KUALA LUMPUR (Jan 16): PLS Plantations Bhd and Japan’s Millennium Agriculture Technology Sdn Bhd (MAT) and MyFarm Inc have recently signed a heads of agreement (HOA) to negotiate further the launch of large-scale durian cultivation in Malaysia, under a joint venture (JV) vehicle valued at RM371 million. PLS LESB, a 51%-owned subsidiary of PLS Plantations Bhd, will be the majority stakeholder in the joint-venture vehicle, with a 51% stake, while MAT is set to invest up to 49% equity interest in the company for RM181.8 million. PLS, which is 73%-controlled by Tan Sri Lim Kang Hoo via Ekovest Bhd, said the joint venture partnership would pave the way for Japanese technology transfer and participation in Malaysia’s longterm food security programme, in line with PLS’s vision to transform itself into Malaysia’s leading sustainable agrofood company. PLS in a statement on Monday (Jan 16) said MyFarm operates one of the largest agricultural schools in partnership with Tokyo Agricultural University, and has produced 2,300 graduates over the past 12 years. MyFarm’s shareholders include Japan’s National Federation of Agricultural Cooperative Associations, Tsumura & Co (a Japanese herbal medicine manufacturer listed on Tokyo Stock Exchange), Nichiryu Nagase Co Ltd (a leading Japanese distributor of agricultural machinery and farm products), DCM Holdings Co Ltd (one of the largest home improvement businesses in Japan), and SB Technology Co Ltd (previously known as Softbank Technology Corp). “This JV will facilitate the transfer of Japanese technology and expertise in agriculture on a scale never seen before in Malaysia. It will boost PLS’s core competencies as a leading producer of export-quality agriculture and aquaculture produce,” said Lim. The Japanese investment, which is expected to be completed this year, will see the deployment of modern Japanese agricultural practices for the planting of the “Musang King” durian species as part of the project. PLS said that within 14 days from the execution of the HOA, MAT shall pay the stakeholder of PLS LESB, a refundable earnest deposit equivalent to 2% of the investment consideration of approximately RM3.6 million. PLS Plantations plans large-scale durian project with Japanese investors via RM371 mil JV MPOB denies red tape is reason for delay in fruit dealer’s licence renewal by Isabelle Francis theedgemarkets.com Bernama by Syafiqah Salim theedgemarkets.com KUALA LUMPUR (Jan 16): The Malaysian Palm Oil Board (MPOB) has denied allegations of bureaucracy bogging down the licensing renewal process for oil palm fruit dealers (DFs), noting that the process would be immediate if there have been no changes to the business entity or the ownership of the premises licensed. In a statement, it said all licence applications must go through the standard operating procedure, and approvals would be based on criteria and licensing policies set by the board to regulate the oil palm industry in a proper and coordinated manner. continues on Page 8

tuesday january 17, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): Malaysia Shipowners’ Association (Masa) argued that pinning the blame on the association for delays in undersea submarine cable repair works is an “oversimplification”, as it is only involved in one part of the process — in the review of applications in the granting of licence to foreign-flagged vessels to work in Malaysian waters. According to the 247-member association, it is only involved in vetting through foreign-flagged vessel applications, and that the issuance of the Domestic Shipping Licence or DSL is entirely under the purview of the Ministry of Transport (MOT). “With regard to undersea submarine cable repair, pinning Masa for the delay of work is an oversimplification. Masa acts as one part of the process, which is proven time and time again that the process only takes two- to three working days. Masa wishes to correct this notion, as it puts the association in a bad light,” it said in a statement on Monday (Jan 16). The statement came after The Edge reported over the weekend that the government is in the midst of reviewing its cabotage policy restrictions for submarine cable repair vessels, a move that would potentially open up Malaysian waters to foreign-flagged ships to provide such services. Cabotage laws in essence prevent foreign-registered ships or foreign-flagged vessels from operating in a particular market to protect local companies. Issues with this arose in mid-November 2020, when the transport minister by Chester Tay theedgemarkets.com Shipowners’ association says blaming it for delay in undersea submarine cable repairs an ‘oversimplification’ then, Datuk Seri Wee Ka Siong, revoked an exemption to the cabotage policy for vessels involved in submarine cable repairs. Prior to that, Loke had approved submarine cable repair vessels to be exempted from cabotage laws in March 2019, following complaints of delays for the repair of undersea cable by tech giants such as Facebook, Google and Amazon. The tech companies complained that without the exemption, the submarine cable repairs were taking too long because the DSL exemption, which allows a ship to undertake submarine cable repairs, could take up to 27 days to obtain in Malaysia, in contrast to 20 days in the Philippines, 19 days in Singapore and 12 days in Vietnam. They also claimed that Masa, which has to confirm that no locally-registered vessels was capable of handling a required function that a foreign-flagged vessel is selected to undertake, was looking to protect its members and blocked foreign-flagged shipping companies from operating in Malaysian waters, which led to the delays. In its statement, Masa, a non-governmental organisation established in 1976, explained that it was given a board seat in the government’s Domestic Shipping License Board because it was entrusted to review all applications by charterers who wish to use foreign-flagged vessels in Malaysia. “It is important to note that Masa does not block any foreign-flagged vessel application for the DSL. That right is given to the Malaysian-flagged vessel owners, as the MSO (Malaysian Shipping Ordinance 1952) had ordained. In this regard, MOT holds the final say, as any application that is blocked will be mediated to make sure that all parties involved get the opportunity to state their case,” Masa said. As caretaker of the vetting process, Masa said it remains neutral, and “acting only as the secretariat when any Malaysia-flagged shipowners decide to offer their ship against a foreign-flagged vessel in any application”. “This is done with the highest degree of professionalism, as Masa does not meddle with anything related to the business side of chartering,” it said. “Should there be no (domestic) vessels available, Masa will produce a consent letter to the MOT, which issues the DSL. This letter serves only to inform the government of the unavailability of a Malaysia-flagged vessel. This practice is important to uphold Section 65KA of the MSO, which prohibits non-Malaysian ships from engaging in domestic shipping, Masa said, adding that the process gives Malaysia-flagged vessel owners a level playing field and helps the nation reduce over-reliance on foreign transport services. This information is also key for Malaysian shipowners to get valuable information to invest towards catering for the domestic market, it added. The agency was responding to a Jan 11 news report containing allegations over the licensing criteria, which included claims related to a board hearing on Dec 7, 2022. The MPOB said several DFs, including two companies owned by the complainant, were called to explain their failure to adhere to the criteria set under the Malaysian Palm Oil Board Act 1998 (Act 582) and a June 1, 2017 circular requiring DF licence holders to provide weighbridge/collection centre facilities. “The two companies, which were licensed in 2006, conducted their business at sites that were not the licensed premises. “The complainant also acknowledged that the place of business was unsuitable (a home), and did not have a weighing or collection station,” it said. The MPOB said the delay in licence renewal was related to the requirements that companies must submit the latest documents and information for the renewal process. “If there are revisions, applicants will be informed and given 14 working days to resubmit their documents from the date that the MPOB receives the application. “The failure to submit the required documents will result in the licence renewal process being delayed or terminated,” it added. from Page 7

TUESDAY JANUARY 17, 2023 9 THEEDGE CEO MORNING BRIEF Market volatility, global political risks and economic uncertainty continue to shake global markets. As investors in this environment, it’s critical we re-evaluate our portfolio positioning to achieve both financial and sustainability objectives. Kenanga Investors Berhad and Northern Trust Asset Management answer some of the key questions facing Asian investors looking to build resilient, alpha-generating and sustainable portfolios. How is the current economic uncertainty impacting investors? Over the next five years, we think investors will need to navigate increasingly complex economic, environmental, and political threats and opportunities to achieve their goals. We have been experiencing a new era of extreme volatility that is leaving investors searching for new ways to achieve the same portfolio objectives. In an environment marked by rapid market swings, investors looking to consistently outperform are reassessing their portfolios’ readiness for this new volatility paradigm. How can investors manage risk in this environment? With this heightened volatility, we think investors should pay more attention to financial measures that we believe define high-quality companies, such as profitability, cash flow and efficient balance sheet management. We believe these companies are positioned to potentially navigate challenging markets. More specifically, what do high-quality companies look like? Northern Trust Asset Management has developed a multi-dimensional view of quality companies, exhibiting characteristics such as: Profitability Our research shows that more profitable firms historically have delivered excess returns to shareholders, but no one measure of profitability is best. Examples of profitability include operating margin and return on invested capital. Strong cash flow Companies with strong cash flow produce sufficient cash to meet their debt obligations and day-to-day liquidity needs, while sustaining or growing dividends. We prefer companies that self-finance their capital needs, which is especially important when interest rates are high or companies are struggling to obtain loans. Conservative balance sheets We seek companies with executive teams that manage capital in a conservative manner. Our research and external studies (Titman, Wei, Xie 2004) show that overly aggressive executive teams can excessively deploy capital that fails to deliver positive return and cash flow to shareholders. How does the Quality factor perform during the various phases of the economic cycles? Historically, quality has delivered high excess returns during the economic contraction and ensuing recovery phases of the economic cycle while still showing positive excess return during the other two phases of economic expansion and slowdowns in economic growth. For that reason, we think now is an opportune time for investors to lean into quality. Quality is among the six factors that we utilize within our portfolio construction, which also include small size, value, momentum, low volatility and high dividend yield. We selected these factors given their proven historical ability to compensate investors for the risk taken over the long-term. While investing in quality, can investors also meet their economic, social and governance (ESG) objectives? Quality may help investors meet their objectives as a single factor or in combination with other characteristics. We have found that strong ESG and financial management go hand-in-hand, as Quality and ESG strategies both seek to provide excess returns by investing in companies with sustainable business models and managed for short- and long-term growth. ESG data also can help identify risks and opportunities not apparent in financial statements. When combining Quality with ESG, these high-quality companies must also demonstrate effective management of their exposure to ESG risks and management of ESG opportunities. The added insight of ESG information can often identify risks not apparent in financial statements. When combined with the data from company financials you can receive a broader coverage of insight into potential risks. We can combine these in the portfolio construction and management process in a unified approach to compose a portfolio that is designed to invest in issuers that exhibit both robust quality and sustainable investing signals, and to encourage them to continue to do so. By incorporating this quality factor overlay into an ESG portfolio, investors are able to emphasize the long-run sustainability of ESG practices while increasing the likelihood of performance above the benchmark. In fact, with an effective framework in place, build around quality, we can consider how ESG research can complement or enhance performance. Navigating Financial Markets in transition with the Quality Factor

tuesday january 17, 2023 10 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): Revenue Group Bhd’s founding brothers Brian Ng Shih Chiow and Dino Ng Shih Fang, who have been accused by the group’s management of “certain complaints” and subsequently suspended from their executive director functions less than two weeks ago pending an investigation, are striking back at their accusers. Brian, who is the largest single shareholder of the e-payment solutions group with an 11.637% stake, served a notice of requisition to the group last Friday to call for an extraordinary general meeting to remove its current board of directors, save for him and Dino, who is the company’s second-largest shareholder with an 11.44% stake. The nine current directors he wants removed are: chairman Nor Azzam Abdul Jalil, managing director-cum-alternative chairman Eddie Ng Chee Siong, Ng Chee Keong, Lai Wei Keat, Loo Jo Anne, Jade Lee Gaik Suan, Alwizah Al-Yafii Ahmad Kamal, Ooi Guan Hoe and Tham Sai Cheong. Eddie is also a co-founder of Revenue Group. He has no familial relationship with Brian and Dino. Besides the removal of the nine, Brian wants to appoint three others in their stead. The three are: Datuk Ammar Shaikh Mahmood Naim, Chong Yu Cheang and Adinor Mohamed Yunus as directors of Revenue Group. In a statement, Brian said he is “very concerned and extremely disappointed by the sharp deterioration and destruction of shareholders wealth since the company was listed on Bursa Malaysia in July 2018”. “The existing board, which is bloated, has failed to galvanise the underlying inherent and strong fundamentals of the company forward. This has resulted in the diminishing market capitalisation of RGB from its peak of approximately RM1 billion to a mere RM234 million as of Jan 13, 2023,” he said. “These three new directors that I am nominating in the EGM are highly qualified individuals, bringing together with them 88 years of cumulative and in-depth working experiences covering administration, operation, and management in various governmental institutions and banking industry spanning risk management, treasury, strategic planning, coupled with hands-on internal audit, taxation, corporate governance, and business advisory services to reputable corporations,” he said. Ammar, according to Brian, just retired as the state secretary of the Kedah government in August last year. Prior to that, he was the Kedah state financial oficer. Adinor, who spent most of his working life in the banking fraternity, left Bank Muamalat Malaysia Bhd in 2019 as its chief economist. He was also previously the bank’s head of risk management and chief risk officer. Chong, meanwhile, has been executive director of Moore Stephens Associates Plt since 2016, where he provides risk and governance assurance as well as advisory services to corporate clients. “It is indisputable that the central IT personnel in RGB is Dino Ng, my brother, who is the chief technology officer and I am the chief operations officer, taking charge of the backroom operations. Both of us have always been in the backend of the company. “It is high time now that going forward, these three new qualified professionals be tasked to take good care of RGB on the corporate front, whilst both of us continue to stay at the backend doing what we are best at all this while. Both of us shall remain as executive directors of RGB, as well as the substantial shareholders,” Brian said. He said the proposed new directors are “true professionals who had no linkage or business dealings with RGB before their proby Izzul Ikram theedgemarkets.com Revenue Group’s Ng brothers strike back by calling for EGM to remove current board posed appointment as directors of RGB”, and will set “a clear corporate governance and independence culture from the existing board, which is bloated and intertwined with friendships and vested interests”. “RGB’s core business is in the electronic payment transaction and related services which deals with banking institutions. Integrity and transparency of the board are two key cornerstones of the company going forward, which should not be compromised, blemished and shall be defended at any cost,” he added. Besides the board room revamp, he wants a resolution for the group’s proposed diversification into property development, construction and property investment be approved. He also proposed to cancel the board’s authority to allot shares, and for the group to undertake a share buy-back. Following his statement, he called for a press conference on Tuesday. Revenue Group, meanwhile, said it is seeking legal advice on Brian’s EGM request and would make further announcements on any material development. On Jan 4, the group announced that Brian and Dino had been suspended from their executive functions pending the aforementioned investigation. It also claimed that the brothers had illegally entered the company’s premises and seized its documents and items. The company had filed a police report over the incident. Revenue Group shares ended 26.5 sen or 54.64% higher at 75 sen on Monday, giving the group a market capitalisation of RM357.96 million.

tuesday january 17, 2023 11 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): RHB Investmet Bank Research has maintained its “neutral” rating on the technology sector and said it believe the semiconductor market will remain in the doldrums in 1H2023, as inventory correction takes place amid demand uncertainty. In a note on Monday (Jan 16), the research house said non-semiconductor counters should see relatively brighter prospects given the domestic-focused business and full reopening of borders. It said sector valuation is rather fair, at its five-year mean, capped by elevated bond yields and quantitative tightening cycle. Still, derailed earnings remain likely, it said. RHB IB said overall guidance from chip-related companies is less bullish for the near term, clouded by the worsening macroeconomic outlook and low consumer confidence — a few bright spots lie in vehicle electrification and high-performance computing-related chips. It said the main challenges are labour and material shortages, demand uncertainties, and geopolitical tensions. “Still, their solid balance sheets and relatively healthy USD/ringgit (despite our in-house forecasts of the ringgit strengthening) should cushion exporters from the demand slowdown. “Upside/downside risks: i) strengthening/softening smartphone sales; ii) favourable/unfavourable foreign exchange movements; iii) strong/weak consumer demand; iv) obsolescence of technology; and v) intensifying geopolitical conflicts,” it said. RHB IB’s top picks are CTOS Digital Bhd and Coraza Integrated Technology Bhd. Semiconductor market will remain in the doldrums in 1H2023, RHB IB says KUALA LUMPUR (Jan 16): Concerns over Tenaga Nasional Bhd’s (TNB) high receivables should ease moving forward, analysts said, on the back of higher electricity tariff surcharge in 1H2023, and progress over the RM6 billion government guarantee for the utility firm’s working capital. In a note, CGS-CIMB said the Ministry of Finance-approved RM6 billion government guarantee “is pending finalisation of documents”, according to what the research house gathered from its recent discussions with TNB. The guarantee came about in August 2022, after TNB’s balance sheet faced pressure in the high fuel costs environment that started from late 2021. TNB front-loads fuel costs in a sixmonth period under the imbalance cost pass-through (ICPT) mechanism, before recouping it from higher tariff surcharge in the subsequent six months. A portion is also recouped from the government when the latter provides electricity subsidy. However, a lagging tariff revision and delay in payment from government resulted in TNB’s receivables ballooning to RM22.3 billion in September 2022 (from RM6.9 billion at end-2020), and led to cash flow constraints for the utility group. Separately, Kenanga Research said the higher electricity tariff surcharge in 1H2023 under the ICPT mechanism — imposed on customers that make up 46% of TNB’s total electricity sales volume — will help TNB recoup its fuel costs faster. The research house is optimistic that the ballooning under-recovery of fuel costs will eventually be recovered. “The 20 sen/ kWh surcharge in 1H2023 should likely see the reduction of ICPT under-recovery in the future,” it added. To recap, the government approved the 20 sen/kWh surcharge on certain non-domestic electricity users in 1H2023. This compares with a blanket 3.7 sen/kWh surcharge on all non-domestic users imposed in the whole of 2022. That said, for TNB to recoup the ICPT impact of RM16.2 billion in the period under review, the tariff surcharge should be at 27 sen/kWh. The difference is subsidised by the government, totalling RM10.8 billion. CGS-CIMB said moving forward, the ICPT for the next implementation period (2H2023) will “likely come in lower than RM16.2 billion given that fuel prices have stabilised at the moment”. It also “gathered that TNB aims to distribute dividends at the higher end of the dividend policy band”. TNB has a dividend policy of 30%-60% payout ratio based on adjusted profit after tax and minority interest, and has continued to pay dividends amid the tight cash flow situation. Despite improved outlook on TNB’s cost recovery and cash flow position, some analysts are still cautious on its outlook. Among the 19 analysts covering the group, nine have ‘buy’ calls with target price (TP) ranging from RM10 to RM14.20, six have ‘hold’ calls (TP: RM8.30-RM9.60), and four have ‘sell’ calls (TP: RM6.90- RM8). Average TP stood at RM10.08. CGS-CIMB is one of two research houses with an ‘add’ call of RM13.60 on the counter — the second highest TP among analysts covering the company — representing an upside of 44%. The research house forecast TNB’s dividend yield of 4.9%-5.3% in the financial year ending Dec 31, 2022 (FY22) to FY24, based on its latest share price. Kenanga Research has maintained an ‘outperform’ call on TNB, albeit with a lower target price of RM10.17 — still representing an upside of 7.6%. TNB shares slipped three sen or 0.32% to settle at RM9.45 on Monday, giving it a market capitalisation of RM54.37 billion. The counter has risen 4.54% in the last year. Better financial footing seen for TNB as concerns ease over high receivables by Adam Aziz & Isabelle Francis theedgemarkets.com by surin murugiah theedgemarkets.com More from brokers: CGS-CIMB downgrades MAHB, lowers target price to RM7.34 TUESDAY MAY 18, 2021 4 THEEDGE CEO MORNING BRIEF TABLE SAMPLE FONT/COLOUR Mixed views on TNB Analysts’ calls Target prices (RM) Buy 9 10.00-14.20 Hold 6 8.30-9.60 Sell 4 6.90-8.00 Source: Bloomberg

tuesday january 17, 2023 12 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): UMW Holdings Bhd racked up record sales of 383,054 vehicles in 2022, 46% higher than the 262,685 vehicles sold in 2021, which was affected by the full movement control order. Both UMW Toyota Motor (UMWT) and UMW’s associate company Perusahaan Otomobil Kedua Sdn Bhd (Perodua) surpassed their sales targets for the year, mainly due to the robust demand driven by the sales tax exemption as well as the exciting new models launched during the year. In a statement on Monday (Jan 16), the group said it delivered record monthly sales of 41,664 units in December 2022, up 7% from the 39,034 units registered in November 2022. With 10,440 units registered in December 2022, UMWT successfully delivered 101,035 units in 2022, a 40% increase compared with the 72,394 units registered in 2021, said UMW. “UMWT therefore maintained its leadership in the non-national automotive segment amid the challenging market conditions and supply chain issues,” said the group, adding that Toyota Vios, Hilux, and Corolla Cross were UMWT’s bestselling models for the year. “In 2023, UMWT will continue to introduce new and exciting models to sustain its momentum. As UMWT is taking a multipath approach towards carbon neutrality, it also plans to introduce a second hybrid electric vehicle UMW racked up record sales of 383,054 vehicles in 2022 due to robust demand KUALA LUMPUR (Jan 16): Insurance platform developer and operator Ouch Free Sdn Bhd (Ouch!) said it plans to become Malaysia’s first digital takaful operator, on the heels of announcing the full subscription of a six-figure funding round. In a statement on Monday (Jan 16), Ouch! said its six-figure pre-series A round has been fully subscribed, and that the company is set to exercise the funding round’s over-allotment to enable additional investors to come on board. The funding round was led by a “Bursa-listed venture capital firm”, the company said, without disclosing the name of the firm. Ouch!’s platform offers insurance solutions across life, home, travel and motor, with the help of its partners AXA Affin Life Insurance and Berjaya Sompo Insurance Bhd. After securing the investment, Ouch! said the company has set its eyes on acquiring final approval from Bank Negara Malaysia (BNM) to operate in the central bank’s regulatory purview. “This comes as a prelude to Ouch!’s mission to become Malaysia’s first digital takaful operator with the planned launch of its new digital takaful product within the first quarter of 2023,” it added. Ouch! said it also plans to obtain a digital insurers and takaful operators (DITO) licence to solidify the company’s position Insurance technology firm Ouch! aims to be Malaysia’s first digital takaful operator by izzul ikram theedgemarkets.com by syafiqah salim theedgemarkets.com within the digital insurance and takaful space. The DITO application period will open later this year, the company said. BNM said in November 2022 that it aims to call for applications for DITO licences in 2023, with up to five licences to be issued to successful applicants. The central bank requested written feedback on its Exposure Draft on Licensing and Regulatory Framework for DITOs by April 28, and aims to finalise the policy document this year. According to BNM’s financial sector participants directory, there are 11 companies with family takaful business licences, and another four with general takaful business licences. Meanwhile, Ouch! also announced the appointment of former Zurich Takaful Malaysia Bhd CEO Mukesh Dhawan to the company’s board, as well as an advisor. Ouch! noted that Dhawan is an investor and shareholder of the company. According to data from the Companies Commission Malaysia (SSM) as at Monday, Ouch! CEO Shazwan Noorazman is the company’s single largest shareholder with a 23.89% stake, followed by OSK Capital Partners Sdn Bhd (17.97%), Tan Yu Bing (10.96%), and Temokin Credentials Sdn Bhd (10.04%). Mukesh holds a 3.04% equity interest in the company. model this year, on top of the possible introduction of a battery electric vehicle for the Malaysian market,” said UMW. Notwithstanding the various challenges faced by the automotive industry, Perodua achieved its best sales performance on record in 2022, as it registered 282,019 units in sales in 2022, from 190,291 units a year earlier. “Perodua also broke another monthly sales record since inception in December 2022, with 31,224 units registered during the month. Furthermore, Perodua also achieved its highest annual production since inception with 289,054 units in 2022. “Moving forward, Perodua will continue to introduce new technologies in its products and services, as well as to continue to invest to improve its production efficiency and capacity,” said UMW. UMW president and group chief executive officer Datuk Ahmad Fuaad Kenali said the group is cautiously optimistic that the automotive industry will continue to perform well in 2023, based on the encouraging bookings and continuing strong demand. The group will continue to introduce competitively priced exciting new models to meet its customers’ requirements, he added. UMW president and group chief executive officer Datuk Ahmad Fuaad Kenali See also ‘Toyota sees vehicle output recovery in 2023, with some risks’ on Page 21

TUESDAY JANUARY 17, 2023 13 THEEDGE CEO MORNING BRIEF OFFICIAL SOLAR PARTNER | H O W T O E N T E R Download entry forms on bmspa.theedgemarkets.com For enquiries, contact The Edge Corporate Communications at: [email protected] S U B M I S S I O N D E A D L I N E All entries must reach The Edge Communications Sdn Bhd, Lobby Level, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor by 5pm, Friday, 24 February 2023 Awards results audited by Deloitte AWA R D S O B J E C T I V E Promote sustainable real estate in Malaysia through recognition of: • Malaysia’s best property management practices • Property in Malaysia designed and built for sustainability N O W O P E N F O R E N T R I E S ( NO FEES REQUIRED ) • All Residential, Office, Mixed Development, Specialised and Retail properties managed in-house/by property building managers • Strata and Non-strata buildings • Re-purposed buildings ALSO OPEN FOR SUBMISSION ( NO FEES REQUIRED ) • The Edge Malaysia’s Responsible Developer: Building Sustainable Development Award • The Edge-ILAM Malaysia’s Sustainable Landscape Award Enter now! The Best Managed & Sustainable Property Awards (BMSPA) introduced by EdgeProp Malaysia in 2017 to benchmark Malaysian property management practices against the best-in-class globally, has not only raised the bar for the industry, but also kick-started the urgently-needed conversation among property stakeholders for Malaysian real estate to be designed, built and maintained sustainably. To step up the efforts to promote the awards and its objectives, the awards will now be hosted by The Edge Malaysia and will assume the name, The Edge Malaysia Best Managed & Sustainable Property Awards. PRESENTED BY | MAIN PARTNER | SUPPORTING PARTNER | SUPPORTED BY |

tuesday january 17, 2023 14 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): MST Golf Group Bhd is seeking a listing on the Main Market of Bursa Malaysia, according to its prospectus exposure published on the Securities Commission’s website last Wednesday (Jan 11). MST Golf, via its subsidiaries, are engaged in the specialty retail and wholesale of golf equipment comprising golf clubs, golf balls and accessories and golf apparel in Malaysia and Singapore. It operates a total of 42 retail outlets, with 35 outlets in Malaysia and the remaining eight outlets in Singapore.   MST Golf’s proposed initial public offering (IPO) comprises some 228 million ordinary shares including public issue of 160 million and up to 68 million existing shares via offer for sale by way of private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry (Miti). The issue price of the shares has yet to be fixed. Of the 160 million new shares, a total of 41.5 million shares will be allocated to MST Golf seeks Main Market listing KUALA LUMPUR (Jan 16): Newly ACE-Market listed Wellspire Holdings Bhd ended its maiden trading day at 43 sen on Monday (Jan 16), up 20 sen or 86.96% versus its initial public offering (IPO) price of 23 sen. It saw strong buying momentum, opening at 33 sen before surging to a high of 59 sen — a 157% premium than its issue price. The stock was traded between a low of 32.5 sen and a high of 59 sen on Monday. At the closing price of 43 sen, the Thailand-based snack food distributor had a market capitalisation of RM306.21 million. Its trading volume swelled more than 18 times to 231.74 million against 12.58 million within the first hour of trading — making it the second-most active stock on the local bourse after Sapura Energy Bhd (454.71 million). Based on the IPO price of 23 sen per share, Wellspire is priced at a trailing price-to earnings ratio of 14.7 times of its earnings per share for the financial year ended Dec 31, 2021 (FY2021), according to TA Securities Research’s note dated Jan 3. The research house derived a fair value of 27 sen for the stock. Wellspire is an investment holding company which is principally involved in the distribution of consumer packaged foods. The group’s main product is sunflower seeds, where Wellspire has been the exclusive distributor of ChaCha brand sunflower seeds and nuts for the Thailand market since January 2013. It also distributes other snack foods such as other seeds and nuts, and baked ACE-Market listed Wellspire climbs 87% on maiden trading day by syafiqah salim theedgemarkets.com by syafiqah salim theedgemarkets.com and confectionery products comprising third-party brands (Cundo) as well as own brands (Pee Ree, Miyu, King Kong).  The group’s shares offered to the public under its IPO exercise were oversubWellspire Holdings Bhd Source: Bloomberg 9am 4:59pm Jan 16, 2023 43 sen 33 sen Sen 0.2 0.3 0.4 0.5 0.6 IPO price of 23 sen scribed by 11.24 times. It offered 124.6 million shares for its listing exercise to raise RM28.7 million fresh capital, of which RM16 million will be utilised for the acquisition or construction of a warehouse and operational facilities in Thailand, RM5.96 million for working capital and another RM6.7 million will be allocated to defray listing expenses.  Wellspire chief executive officer and executive director Mo Guopiao said the company’s journey over the year has been underpinned by its execution and strong management, which effectively earned the trust of its key customers, including CP All, Big C, Ek-Chai and Siam Makro. “Notwithstanding all of our group’s revenue is derived from Thailand, we have chosen to list Wellspire in Malaysia and the overwhelming demand for our IPO clearly validates our decision. The successful listing of Wellspire on the ACE Market of Bursa Securities indeed marks the beginning of a brand new and exciting chapter for us, as we continue to build on the solid foundation and future growth trajectory of our group,” he said in a statement. On its financial performance, Wellspire posted a net profit of RM962,000 on a revenue of RM30.28 million for the third quarter ended Sept 30, 2022 (3QFY2022). Its cash and bank balances stood at RM13.13 million, while its total borrowings were at RM4.52 million as at Sept 30. TA Securities Holdings Bhd is the principal adviser, sponsor, sole underwriter and sole placement agent for this IPO exercise. the Malaysian public; 76 million shares are made available for application by way of private placement to identified institutional and selected investors and 7.9 million shares for MST Golf’s eligible directors, employees and persons who have contributed to the success of the company. Meanwhile, 34.6 million shares are made available for application by way of private placement to identified Bumiputera investors approved by MITI. MST Golf’s substantial shareholders are All Sportz with a 64.76% stake, followed by its executive director or group chief executive officer Ng Yap Sio (12.95% stake) and executive chairman Low Kok Poh (6.48%). On its financial performance, the company posted a profit after tax (PAT) of RM13.69 million for the financial year 2020 (FYE2020) on a revenue of RM170.15 million, while FY2021’s PAT climbed to RM20.09 million as revenue rose to RM206.52 million. Going forward, the company plans to establish an additional 15 retail outlets including 10 retail outlets and five retail outlets with indoor golf centres between 2023 to 2025. “We plan to commence upgrading and refurbishing activities starting from the third quarter of 2023 to 2025 in stages, which include renovation as well as replacement of furniture and fittings in 10 retail outlets in Malaysia as well as our head office and warehouse at Subang Jaya, Selangor,” it said. Read the full story

tuesday january 17, 2023 15 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 16): Founder and president of ViTrox Corp Bhd Chu Jenn Weng was named the EY Entrepreneur Of The Year (EOY) 2022 Malaysia at a glittering black-tie gala held last Thursday (Jan 12), after a long three-year break owing to the Covid-19 pandemic. Chu, 53, who was also declared the winner in the Master Entrepreneur category, was selected from among 13 top nominees vying for the title. He will represent Malaysia on the international stage this June, competing for the EY World Entrepreneur Of The Year (WEOY) 2023 award in Monte Carlo, Monaco. Penang-based Vitrox specialises in designing and developing automated vision inspection systems and equipment testers for the semiconductor and electronic packaging industries. Under Chu’s stewardship, ViTrox launched its first 3D vision inspection system for semiconductor components in 2004 and, today, it is a global industry leader in machine vision technology. The company has received the prestigious Global Technology Award for advanced X-ray inspection and optical inspection consecutively for the last 10 years and has won numerous other honours for its outstanding performance in its business, products and technology, as well as in human resource development. Philip Rao, Ernst & Young Consulting partner and EOY Malaysia programme director said, “Chu is an inspiring visionary and leader whose story profoundly reflects ‘The Unstoppable’ attributes of an exceptional entrepreneur. Chu strives to build a winning team at ViTrox by leading the company on a solid sustainable five-theme strategy as a go-green practitioner; accountable purchaser; caring employer; trusted corporation; and a promoter of sustainable governance. Today, ViTrox continues to expand its presence with more than 600 sites across 46 countries, aiming to become the world’s most trusted vision inspection solutions company.” The EOY programme, which has run in Malaysia for more than two decades, supports the government’s efforts to assist the spirit of entrepreneurship in the country. In his address, Deputy Finance Minister II Steven Sim Chee Keong said, “It is vital that we fortify existing programmes and initiatives to further accelerate digitalisation and the adoption of new, cutting-edge technologies, nurture an ecosystem that promotes public-private partnerships in spurring greater innovation, upskill our talent and develop future workforce and entrepreneurs. “I wish to commend and congratulate EY for celebrating 21 years of the EOY award programme in Malaysia and for your pivotal role in fostering principled entrepreneurship in Malaysia over the years,” he said, paying homage to an initiative that has successfully highlighted the achievements of creative, successful enterprises all over the world and the unstoppable forces behind them. Malaysia managing partner of Ernst & Young Datuk Abdul Rauf Rashid agreed. He said, “The EOY programme is about recognising the entrepreneurial spirit of extraordinary men and women who have gone on to build and open doors for themselves and countless others. Even during the most challenging times, they have stepped up and persevered against all odds in pursuing their unstoppable ambition for a better working by Anandhi Gopinath The Edge Malaysia Chu Jenn Weng of ViTrox Corp Bhd named EY Entrepreneur Of The Year 2022 Malaysia world that is equitable and sustainable. “Through their business, these entrepreneurs are continuously revitalising the business landscape by introducing new and innovative services and products, and creating jobs and wealth. They also transform lives by contributing to the economy and society and, along the way, they are inspiring other budding entrepreneurs to follow suit.” The three other recipients of awards at the event were Empire Sushi CEO Nicole Lim (EY Emerging Entrepreneur Of The Year 2022, Malaysia), ATX Distribution CEO Sashi Kumar A Kovindasamy (EY Technology Entrepreneur Of The Year 2022, Malaysia) and Hernan Corp founder and CEO Anna Teo (EY Woman Entrepreneur Of The Year 2022, Malaysia). All four winners were selected by an independent panel of judges guided by a set of global standard criteria. For more information on the four winners and all 13 nominees, or to nominate an unstoppable entrepreneur whom you know, visit ey.com/my/eoy The Edge is the media partner of EY Entrepreneur Of The Year Malaysia 2022 All four winners were selected by an independent panel of judges guided by a set of global standard criteria From left: Sim, Chu and Abdul Rauf after Chu was named EY Entrepreneur Of The Year 2022, Malaysia, at an elegant black-tie event All photos: EY Entrepreneur Of The Year (EOY) 2022 Malaysia

tuesday january 17, 2023 16 The E dge C E O m o rning brief home news In brie f Ringgit higher versus US dollar as local exporters cut greenback holdings KUALA LUMPUR (Jan 16): The ringgit maintained its strength against the US dollar on Monday (Jan 16) after lower US inflation data led to expectations that the US Federal Reserve (Fed) would scale back a 25-basis point interest rate hike, prompting Malaysian exporters to reduce greenback holdings. At 6pm, the ringgit appreciated to 4.3150/3200 against the greenback from Friday’s close of 4.3325/3375. SPI Asset Management managing partner Stephen Innes told Bernama that there is an internal Malaysian dynamics at play, which is presently forcing the ringgit to move stronger. “Foreign currency deposits in the system has declined at present from 16% in 2022 (2019: 4.0%), driven by favourable US dollar against the local note interest differentials, a strong US dollar as safe haven, and high domestic political risk premium,” he said. He also said exporters believe the US dollar has reached its peak and expects the ringgit to climb to below the 4.20 level against the greenback in 2023. The ringgit also rose to 5.2643/2704 against the British pound, from 5.2973/3035 at Friday’s close, and was better against the Singapore dollar at 3.2677/2720 from 3.2782/2825. It also strengthened versus the euro to 4.6693/6747 from 4.6986/7040; and vis-a-vis the Japanese yen to 3.3616/3658 from 3.3703/3744. — Bernama Ex-Selangor police chief Arjunaidi appointed as Saudee Group chairman KUALA LUMPUR (Jan 16): Saudee Group Bhd has appointed former Selangor police chief Datuk Arjunaidi Mohamed as its independent and non-executive chairman. The appointment is effective from Monday, the frozen food processor said in a filing with Bursa Malaysia. Arjunaidi, 60, had served the police force for 35 years, before retiring as Selangor police chief on Dec 31 last year. Saudee’s share price closed flat at 4.5 sen on Monday, giving the group a market capitalisation of RM46.19 million. The stock has declined 36% over the past year. — by Syafiqah Salim Minister: Importing eggs from India only temporary measure PUTRAJAYA (Jan 16): The government will only import eggs from India until local supplies stabilise, said Agriculture and Food Security Minister Mohamad Sabu. He said the measure was taken because local producers were unable to meet the demand which resulted in a shortage of eggs in the market. “The problem now is that local farmers are not producing enough eggs,” he told reporters after delivering his New Year’s message to the ministry’s staff here on Monday. He was commenting on Ayer Hitam MP Datuk Seri Dr Wee Ka Siong’s statement that the Agriculture and Food Security Ministry (MAFS) should prioritise local farmers instead of importing eggs from India to deal with the issue of chicken egg supply shortage. Mohamad said MAFS was currently holding discussions with other ministries, including the Ministry of Domestic Trade and Cost of Living, the Ministry of Economy and the Ministry of Finance, as well as local egg producers on whether to continue or make changes to the subsidy mechanism in order to increase supply in the market. — Bernama K Seng Seng’s MD steps down, Keh Chuan Seng named as new executive chairman KUALA LUMPUR (Jan 16): Stainless steel manufacturer K Seng Seng Corp Bhd said its managing director (MD) Koh Seng Lee has stepped down “to pursue his personal interest”. The 61-year-old was redesignated as MD in May 2019, two months after the demise of his elder brother Koh Seng Kar @ Koh Hai Siew, who founded the group in the 1980s. In stock exchange disclosures on Monday (Jan 16), K Seng Seng also announced the appointment of Keh Chuan Seng as its new executive chairman, and the re-designation of Lee Hai Peng as executive director from independent non-executive director. Keh, 52, is the executive chairman of property developer Frazel World Sdn Bhd. He is also non-independent nonexecutive chairman of EG Industries Bhd and HB Global Ltd. Lee, on the other hand, was appointed to the group’s board on Dec 22 last year, shortly after he relinquished his position as executive director of Chin Hin Group Bhd earlier that month. Currently, Lee is also a non-independent nonexecutive director of Solarvest Holdings Bhd, in which Chin Hin’s founding Chiau family has a 19% stake. The Koh family still owns a substantial shareholding in K Seng Seng, with Seng Lee holding 19.33% as at Oct 20 last year. Another 32% stake was held under Seng Kar’s name as at March 2022. — by Chester Tay KAB to acquire first biogas power plant in Kedah for RM15 mil KUALA LUMPUR (Jan 16): Kejuruteraan Asastera Bhd (KAB) is acquiring the entire stake in Future Biomass Gasification Sdn Bhd (FBG) and its biogas power plant asset for a total of RM15 million. In a statement Monday, KAB said FBG owns a biogas power plant in Kuala Ketil, Kedah, with an installed capacity of 2.4 megawatts. The plant captures greenhouse gases released from palm oil effluents and converts the gas into electricity using highlyefficient biogas engine generators. The electricity generated by the biogas power plant is supplied to the national grid, and subsequently to nearby towns and villages under a feed-in tariff programme. With this acquisition, KAB said that it will recognise revenue from FBG’s existing renewable energy power purchase agreement (Reppa) with Tenaga Nasional Bhd. The Reppa commenced in 2018 and is effective for 16 years until 2034. “Upon completion of acquisition, KAB’s Sustainable Energy Solutions (SES) segment will own its first biogas power plant. KAB’s SES portfolio currently has solar photovoltaic systems, cogeneration, and waste-heat-recovery assets in Malaysia and Thailand,” added KAB. — by Syafiqah Salim Bloomberg Keh Chuan Seng

tuesday january 17, 2023 17 The E dge C E O m o rning brief home ALOR SETAR (Jan 16): The chairman of a cooperative in Kedah has been remanded for six days for investigation over alleged false claims in a RM20.3 million dairy cattle farming project in the state in 2015. The remand order against the 57-year-old man was issued by Alor Setar magistrate Muhammad Zul Hilmi Latif on Monday (Jan 16), following an application by the Malaysian Anti-Corruption Commission (MACC). According to an MACC source, the man was arrested about 3pm on Sunday at the Kedah MACC office in connection with allegations that several companies had conspired to submit false claims for payment incentives for the project in 2015. “The dairy cattle farming project under the Dairy Cluster Entry Point Project 13 of the Economic Transformation Programme is worth RM20.3 million, and false claims were made with the Veterinary Services Department, although no deliveries were made,” said the source. Kedah MACC director Datuk Shaharom Nizam Abd Manap, when contacted by Bernama, confirmed the arrest, and said the case is being investigated under Section 18 of the MACC Act 2009. On Jan 11, a 51-year-old company director and a 52-year-old company owner were remanded for four days in connection with the same case. Cooperative chairman in Kedah remanded for six days over alleged false claims in RM20.3 mil dairy cattle farming project KUALA BERANG (Jan 16): Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar has denied an allegation of a ‘cold war’ between state leaders and the federal government following their absence at a programme held in conjunction with the Prime Minister Datuk Seri Anwar Ibrahim’s visit to the state last Thursday. Ahmad Samsuri said the state government had no problem working together with the federal government especially involving common interests, adding that their absence was due to miscommunication. “What happened was due to a communication problem and I don’t want to prolong this issue,” he said after handing over house keys to owners of Tajin Sejahtera Affordable Houses in Kampung Tajin, Hulu Terengganu here on Monday. “…during the prime minister’s recent visit, I was not informed of any specific business with the state government. Therefore, we only helped in terms of logistics and transport... nothing else was requested,” he said, adding that previous practice involved the Prime KUALA LUMPUR (Jan 16): The criminal trial of Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, which was slated to resume on Monday (Jan 16), has been vacated until April 10. In a case management before presiding judge Datuk Collin Lawrence Sequerah, deputy public prosecutor Datuk Raja Rozela Raja Toran attended the case management in the High Court here to inform the judge that the trial dates fixed for April will remain. She then said that additional dates for the case were set as agreed upon by prosecutors and Zahid’s defence, which is led by Hisyam Teh Poh Teik. The additional dates are June 12- 15, July 24-27, Aug 1-3, Aug 7-10, and Aug 21-24. The trial was previously slated to resume this week from Jan 16-19, and continue on Jan 30-31, Feb 7-9, and March 27. No reason was given as to why the January and February dates were vacated and replaced with the additional June, July and August dates as mentioned above, as Sequerah agreed to the adjournment. The trial will now resume on April 10-13, May 15-18, and then during the new dates set for June, July and August. Zahid is in defence against 47 charges, including alleged criminal breach of trust of RM31 million belonging to charitable foundation Yayasan Akalbudi, which the deputy prime minister leads. Zahid, who is the Bagan Datuk Member of Parliament, was ordered by Sequerah to enter his defence in respect of all 47 corruption charges in relation to Yayasan Akalbudi last year. Twelve of them are criminal breach of trust charges, followed by eight for graft, and 27 for money laundering. Terengganu MB denies ‘cold war’ claim between the state and Fed govt Zahid’s Yayasan Akalbudi trial vacated until April 10 for undisclosed reasons Minister’s Office (PMO) informing the state government of the purpose of the visit and who is involved. In the meantime, Ahmad Samsuri said so far the state government has not been called for any official meeting with the central government, however, he said he was expected to attend a ceremony where the Prime Minister will deliver his mandate to state government heads and Cabinet ministers in Kuala Lumpur this Thursday. In another development, Ahmad Samsuri said he left it to the authorities to investigate Terengganu UMNO’s claim that PAS distributed money to the people during the 15th General Election (GE15) in November last year. “That is the right provided by the GE law to any party who is not satisfied for any reason. The petition will be dealt with in a legal manner by all parties,” he said. On Jan 3, Terengganu UMNO Chief Datuk Seri Ahmad Said filed a petition at the Kuala Terengganu High Court to annul the GE15 results involving the Marang, Kemaman and Kuala Terengganu parliamentary seats, alleging that PAS had bribed voters by distributing financial aid a few days before polling day. Read also: GE15: Terengganu Umno files petition to annul results for three parliamentary seats GE15: PH’s Awang Husaini files petition to annul Putatan parliamentary seat results Bernama by Timothy Achariam theedgemarkets.com Bernama

tuesday january 17, 2023 18 The E dge C E O m o rning brief home SEREMBAN (Jan 16): Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun said that the State Legislative Assembly is expected to be dissolved in May to pave the way for the state polls. The PKR vice-president said this was based on the unofficial discussions with the menteri besar and chief ministers of the six states involved regarding the matter before attending the Conference of Rulers recently. “Basically, we agreed to dissolve in May…it means the state polls will be in June or July, we do not have much time, only a few more months left. So, we need to continue to prepare to ensure our victory. “After the polls, there will be various assumptions and views as to whether we are with Barisan Nasional (BN) or not…that we will decide soon. Hopefully, there will be a swift decision so as to draw up the joint strategy with BN,” he told reporters after the Negeri Sembilan PKR Convention here on Sunday night (Jan 15). The six states that will be holding their state polls this year are Selangor, Penang, Negeri Sembilan, Kedah, Kelantan and Terengganu. Meanwhile, PKR deputy president Rafizi Ramli said that as the national election director, he would ensure that the party would be able to defend Negeri Sembilan in the state election. Rafizi also hoped that the political cooperation with BN could be decided earlier so that the party could prepare for the next election. “It will be one of the platforms to test the cooperation with Umno which, I think if successfully negotiated, will be a model to strengthen cooperation at the federal level,” he said. Asked if there were difficulties in the cooperation between PH and BN, Rafizi said the two state leaders, namely Aminuddin and Datuk Seri Mohamad Hasan, were individuals who were easy to talk to and loyal to the party. Negeri Sembilan expected to dissolve state assembly in May, says MB PUTRAJAYA (Jan 17): Chief Judge of Sabah and Sarawak (CJSS) Tan Sri Abang Iskandar Abang Hashim, who has been the acting Court of Appeal (COA) president since last November following the retirement of his predecessor Tan Sri Rohana Yusuf, is expected to be named the new COA president today (Jan 17). And with the 63-year-old Sarawakian’s elevation to the second most senior position in the country’s judiciary, the CJSS post will be left vacant, together with the Chief Judge of Malaya post, which Federal Court judge Datuk Mohamad Zabidin Mohd Diah has assumed temporarily on an acting basis. Two names have been bandied about who could replace Abang Iskandar, namely Federal Court judges Datuk Abdul Rahman Sebli and Datuk Rhozhariah Bujang, both also from Sarawak. The elevation of judges will take place after they receive their instruments of appointment from the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah this morning. This will be followed by the oath-taking ceremony before Chief Justice Tun Tengku Maimun Tuan Mat in the afternoon. With the elevations, there will be a total of four vacant positions in the Federal Court, which will have to be filled by COA judges. There are, however, already nine vacancies in the COA, which will likely be filled by the present High Court judges. CJ of Sabah, Sarawak Abang Iskandar likely to be named new Court of Appeal president today by hafiz yatim theedgemarkets.com Bernama Sources indicate that a former deputy public prosecutor and former prosecution head of Malaysian Anti-Corruption Commission Datuk Nordin Hassan— who is now a COA judge — will be elevated to the apex court. Among the judges expected to be elevated to the COA are: Mohamed Zaini Mazlan, Datuk Collin Lawrence Sequerah, Datuk Azimah Omar, Datuk Lim Chong Fong and Datuk Azman Abdullah. Zaini was the presiding judge in Datin Seri Rosmah Mansor’s solar hybrid graft case, while Sequerah is the presiding judge in the 1Malaysia Development Bhd case — where former prime minister Datuk Seri Najib Razak is facing 25 charges — and Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s graft case involving funds of the charitable organisation he founded, Yayasan Akal Budi. Azimah, meanwhile, was the judge who wrote the judgement in the defamation suit that former attorney-general Tan Sri Mohamed Apandi Ali brought against DAP stalwart Lim Kit Siang. The Edge previously reported about the vacancies among superior court judges, and that Tengku Maimun had, after officiating the Official Legal Year, indicated that the vacancies would be filled soon. Chief Judge of Sabah and Sarawak (CJSS) Tan Sri Abang Iskandar Abang Hashim Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun

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tuesday january 17, 2023 20 The E dge C E O m o rning brief world (Jan 16): US Treasury Secretary Janet Yellen will hold her first face-to-face meeting with Chinese Vice Premier Liu He on Jan 18 in Zurich, making a detour on her way to talks in Africa. The pair “will exchange views on macroeconomic developments and other economic issues,” the Treasury Department said in a statement. The surprise announcement follows the November meeting between President Joe Biden and President Xi Jinping on the sidelines of the Group of 20 summit in Bali, Indonesia. It was the first face-to-face session for the heads of state and has initiated a modest thawing of relations between the two governments. Despite that, the Wednesday morning meeting in Switzerland could be contentious as Washington and Beijing continue to squabble over trade, human rights and the autonomy of Taiwan. In recent months Yellen has championed a so-called “friend-shoring” policy that would see the US and its allies rely less on China for the supply of critical goods. That and efforts to deny China access to technologies, including advanced semiconductors, has led Beijing to accuse the US of economic protectionism and to file a dispute with the World Trade Organization. Secretary of State Antony Blinken is scheduled to visit Beijing early in 2023. Yellen said in December she had no specific plans for a similar trip but was open to that possibility. In addition to addressing several touchy topics, Yellen might also use the Zurich get-together to quiz Liu on the state of Yellen sets surprise US-Chinese meeting with Liu in Switzerland (Jan 16): Geopolitical tensions that threaten to split the world into rival economic camps could complicate action needed to address global issues and leave everyone poorer, the head of the International Monetary Fund (IMF) said. The longer-term cost of trade fragmentation alone could range from 0.2% of global output in a limited scenario to almost 7% in a severe one, IMF managing director Kristalina Georgieva said on Monday. If technological decoupling is added to the mix, some countries could see losses of up to 12% of GDP, she warned. “In addition to trade restrictions and barriers to the spread of technology, fragmentation could be felt through restrictions on cross-border migration, reduced capital flows, and a sharp decline in international cooperation,” the IMF chief said in a blog post. “That would leave us unable to address the challenges of a more shock-prone world.” Her concerns reflect an emerging divide in the global order some 30 years after the collapse of the Soviet bloc that threatens to split the world into Team West and Team China, among other potential groupings.  Georgieva highlighted that such an outcome would throw up even more hurdles to dealing with challenges like debt relief for impoverished nations and climate action, as well as trade. About 15% of low-income countries are in debt distress and an additional 45% are at high risk of it, she said. Among emerging markets, about 25% are “at high risk and facing default-like borrowing spreads”. The need for collective action to cut emissions remains critical, as last year, there were climate disasters on all five continents, with US$165 billion in damages in the US alone, Georgieva said. “It shows the massive economic and financial risks of unmitigated global warming.” World split into rival economic blocs threatens action, IMF says by Michael Heath Bloomberg by Christopher Condon Bloomberg Read also: German defence minister resigns amid criticism, pressure over Ukraine arms “Christine Lambrecht resigned from Chancellor Olaf Scholz’s government on Monday, the culmination of growing doubt about her ability to revive Germany’s armed forces against the backdrop of the Ukraine war. Her decision dealt a blow to Scholz at a time when Germany is under pressure to approve an increase in international military support for Kyiv.” Bloomberg China’s economy and the direction of economic policy following Xi’s consolidation of power during a Communist Party congress in October. Yellen told Bloomberg News in November that Xi’s strengthened grip on power, and the turnover of leading officials in Beijing, had increased uncertainty over the direction of the world’s second-largest economy. Yellen may ask about a series of recent developments suggesting the new leadership team is indeed willing to give the private sector more space and support. Liu, with whom Yellen has held three video conferences, is among officials expected to leave his current post when Xi unveils his new government in March. The Zurich stop comes at the front end of an 11-day journey taking the Treasury chief to Senegal, Zambia and South Africa. It’s part of a Biden administration strategy to build ties on the continent and counter China’s influence across the developing world.

tuesday january 17, 2023 21 The E dge C E O m o rning brief world TOKYO (Jan 16): Toyota Motor Corp expects vehicle production to exceed pre-pandemic levels, forecasting output of as many as 10.6 million vehicles during 2023, while warning that final shipments could be 10% lower if it is unable to procure enough parts, especially semiconductors. The newly-issued target would be a significant jump from the planned 9.2 million vehicles that the Japanese carmaker forecasts for the fiscal year through March. Toyota made 9.05 million vehicles in 2019. As the world’s No. 1 carmaker, Toyota is a bellwether for the rest of the global automobile industry and its suppliers. Volkswagen AG said last week that it expects supply bottlenecks to ease and that it was confident for 2023, citing higher orders. Even so, parts shortages stemming from Covid-related lockdowns have challenged the industry, on top of rising costs for materials and logistics. “Currently, we are working toward a production volume with a ceiling of 10.6 million units for 2023,” Toyota said in a statement on Monday, adding that there’s a “downward risk fluctuation range of approximately 10%”. Despite predicting a recovery last year, the Japanese auto manufacturer had to lower its production outlook for the current period in November, citing a persistent lack of chips. Underscoring the chip shortage, Toyota temporarily gave new car buyers just one smart key instead of two late last year, seeking to ration semiconductors. The measure applied to 14 models for sale in Japan, including Crown sedans, Prius hybrids and the battery-electric vehicle bZ4X. “The situation this year remains difficult to predict due to factors such as semiconductor shortages and the spread of Covid-19,” Toyota said. Toyota sees vehicle output recovery in 2023, with some risks (Jan 16): China’s ride hailing giant Didi Global said in a statement on Monday it would be allowed to resume new user registration, after a more than year-long ban that curbed its growth. The company would take effective measures to ensure platform safety and data security, and safeguard national cyberspace security, it said in the statement. Didi has been awaiting approval to resume new user registrations and downloads of its 25 banned apps in China as a key step to a return to normal business since its regulatory troubles started in mid-2021. Chinese policymakers are seeking to restore private sector confidence and counting on the technology industry to help spur economic activity that has been ravaged by the COVID-19 pandemic. Didi will need its ride-hailing and other apps to be back on domestic app stores to win new users, though the statement did not specifically mention it. DUBAI (Jan 16): Russians were the biggest international buyers of Dubai real estate last year, when the city emerged as a safe haven amid geopolitical and economic uncertainty elsewhere, according to brokerage Betterhomes. Once a niche group of buyers in Dubai, Russians’ interest surged after the war in Ukraine as their nation faced ever tighter sanctions, helping to push the value and number of sales to record levels. Dubai registered more than 86,000 residential sales transactions last year, surpassing a previous record of 80,000 in 2009, according to Dubai-based Betterhomes. About 208 billion dirhams (US$56.6 billion) worth of property was sold last year, an almost 80% gain from 2021. The increase in prices slowed to 11% in 2022 from 21% a year earlier, it said. The property market in Dubai has bucked China lifts ban on ride-hailing giant Didi’s new user registration Russian buyers help propel Dubai property sales to record by Yingzhi Yang & Julie Zhu Reuters by Abeer Abu Omar Bloomberg by Tsuyoshi Inajima Bloomberg the trend in much of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. Prices and rents in the emirate have also been buoyed by bankers fleeing strict lockdowns in Asia, Israeli investors, crypto millionaires, and hedge fund executives after the city eased social restrictions and liberalised laws to cement its position as the region’s top business hub. Read the full story reuters bloomberg

tuesday january 17, 2023 22 The E dge C E O m o rning brief world (Jan 16): The European Central Bank’s battle with inflation may end within half a year as policy makers begin to reverse rate hikes as soon as July, according to economists polled by Bloomberg. The deposit rate will be raised to a peak of 3.25% — from its current level of 2% in three steps. The survey shows two halfpoint hikes at the February and March meetings, followed by a 25 basis-point increase in May or June. The median analyst prediction then envisages cutting the rate back to 3% at the start of the third quarter. Such a scenario would suggest a drastic turn of events that the ECB doesn’t envision. Most of its officials see rates remaining where they are after the so-called terminal rate is reached and none have called for rate cuts. ECB rates seen hitting peak of 3.25% before cut in July India now buying 33 times more Russian oil than a year earlier (Jan 16): The China reopening story is fast becoming the most important trading theme in emerging markets, so figuring out its potential impact across asset classes is vital for global investors. For stocks, it’s a boost as it promises to raise consumer demand, improve corporate cash flows and revive trade volumes. For currencies, however, it could be a drag by reducing real yields via inflation, pressuring China’s current account and delaying a policy pivot by the Federal Reserve. For bonds, it’s a mixed offering. The nation’s easing of the Covid Zero policy and stimulus to revive growth have sent Hong Kong-listed Chinese stocks to the best start to a year since 2006, the yuan to a six-month high and its bonds toward a third monthly rally. It has also sparked gains across emerging markets, from the Thai baht to South African rand and Brazilian stocks. Projections show the second-biggest economy may grow at 4.8% in 2023, compared with a 0.4% expansion in the US and 0.1% in the European Union. “The China reopening story will be the key driver of emerging-market sentiment, bringing positive spillovers especially to regional economies and global commodity suppliers,” said Galvin Chia, a currency strategist at NatWest Markets in Singapore. “China on the way up at a time when the US and the Eurozone are on the way down is definitely a source of optimism as it will partially offset the demand slowdown.” Developing-nation stocks and currencies have made the strongest start to a year since the 1990s, and bonds are posting the best gains in more than a decade, as investors who stayed on the sidelines during China’s pandemic struggles are coming back. GAMA Asset Management turned bullish on emerging markets last month. Fidelity International, which was bearish for most of the past year, is now overweight the assets, favoring China and Latin America. “China’s pro-growth policies was the last driver I was waiting for,” said Rajeev De Mello, a global macro portfolio manager at GAMA. “Taiwan, South Korea and Malaysia will be the bigger beneficiaries of a greater Chinese demand for goods, while Chile, Brazil, Indonesia and South Africa offer exposure to China via their commodity exports. The opening up of international travel will benefit first the closest destinations for Chinese tourists like Thailand.” What’s more, China’s narrowing factory-gate deflation has hinted at a return of activity, while a small up-tick in consumer inflation still leaves room for the central bank to add stimulus. “China’s reopening and reacceleration will not be able to prevent a global slowdown, but it will indeed attenuate its impact — which is positive to EM sentiment,” said Julio Callegari, lead portfolio manager for Asia local rates and foreign exchange at JPMorgan Asset Management. Read the full story China’s reopening is a mixed blessing for emergingmarket assets by Karl Lester M Yap Bloomberg by Andrew Langley & Harumi Ichikura Bloomberg by Rakesh Sharma Bloomberg Investors see the deposit rate rising even more, according to the latest MLIV Pulse survey, with more than half in the poll predicting it will peak at 3.5% or higher. While euro-zone price gains are moderating and consumers are less worried, policymakers have set their sights on bringing down underlying inflation, which hit a record last month as higher energy costs and wages feed through with a lag. The economists polled reckon the core price gauge — which excludes food, energy and other volatile items — will peak at an average of 5.1% this quarter, before retreating to 3.5% in the final three months of 2023. Read the full story NEW DELHI (Jan 16): India bought a record amount of Russian oil last month, with the country importing a whopping 33 times more than a year earlier. The world’s third-biggest crude importer purchased an average of 1.2 million barrels a day from Russia in December, according to data from Vortexa Ltd. That’s 29% more than in November. The country is now easily India’s biggest source of oil, after overtaking Iraq and Saudi Arabia several months ago. Indian refiners have been lapping up cheap Russian crude since the invasion of Ukraine caused many buyers to shun the shipments. The sharp increase in December is possibly the result of deepening discounts due to additional sanctions from the G-7 and European Union including a US$60-a-barrel price cap. “Russia has likely offered its crude at an attractive discount to Indian refiners, which have surpassed China as the largest importer of Russian crude,” said Serena Huang, lead Asia analyst at Vortexa. India meets more than 85% of its oil demand via imports, which makes it highly vulnerable to price volatility.

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tuesday january 17, 2023 24 The E dge C E O m o rning brief world JAKARTA (Jan 16): Two workers were killed in clashes and rioting at an Indonesian nickel smelting facility at the weekend, officials said on Monday, after violence erupted during a protest by a labour group demanding better pay and safety. An Indonesian and a Chinese worker were killed during the unrest at the PT Gunbuster Nickel Industry (GNI) smelter, owned by China’s Jiangsu Delong Nickel Industry, which involved protesters, workers and security personnel, said Didik Supranoto, a spokesperson for Central Sulawesi police. Several company vehicles were torched and about 100 dormitory rooms were damaged, Didik said, adding that 71 people were detained and operations at the smelter had been suspended. GNI launched the smelter in late 2021 with an annual capacity of 1.8 million tonnes and estimated total investment of US$2.7 billion. Protester Minggu Bulu, a member of the labour group and former GNI employee, said there were fatal safety lapses at the facility in the past year, including a motorcycle crashing into heavy machinery and an explosion at the smelter. GNI could not immediately be reached for comment on the allegation and police were unable to confirm whether deadly accidents had taken place. “Work health and safety implementation is very poor, so we asked the company to implement it according to the law,” Minggu said, adding that workers also lacked proper safety gear. GNI in a statement said it was investigating the incident. “The company, together with law enforcement officials, has immediately launched an in-depth and thorough investigation into the incidents that have caused harm to all parties, both material and immaterial losses, and even fatalities,” it said. Violent protests have broken out sporadically in the mineral-rich region of Sulawesi, which has seen a recent investment boom in nickel that is used in electric vehicle batteries.Indonesia’s Industry Minister Agus Gumiwang Kartasasmita in a statement offered condolences over the deaths and urged dialogue between workers and management and for regulations to be fully adhered to, including on workers’ rights and safety standards. Violence at Indonesia nickel smelter protest kills two, dozens detained (Jan 16): Plans to use a 4,200-kilometer (2,600-mile) power cable to send clean energy from Australia to Singapore are no longer commercially viable, according to one of the project’s billionaire investors. A review of Sun Cable’s A$30 billion (US$21 billion) proposals concluded the project should ditch an ambition to export electricity and focus instead on using a huge planned solar and battery facility to feed green industries at home, according to Andrew Forrest’s Squadron Energy unit — which holds a 25% stake in the developer. Sun Cable entered into voluntary administration last week after a disagreement between Forrest and tech tycoon Mike Cannon-Brookes over funding and the plans to send clean power overseas. Forrest is considering a potential offer for the company, a person familiar with the details said last week. “Squadron Energy continues to believe in the vision for a game changing solar and battery project in the Northern Territory’s Barkly region,” Squadron Chairman John Hartman said. The unit — Australia’s biggest renewables developer — is focused on helping the country “become a green energy exporting superpower by generating renewable energy to produce green Billionaire says Australiato-Singapore solar plan now unviable hydrogen and green ammonia.” There has been widespread industry skepticism over the wild ambition of the Sun Cable plans, which include proposals to build the world’s largest solar farm and a giant battery facility and then export electricity to Singapore via a high-voltage undersea cable that’s more than five times longer than major existing connectors like the Norway-to-UK North Sea Link. Forrest is seeking to transform his Fortescue Metals Group Ltd, a key global iron ore supplier, into a major producer of green metals and an exporter of clean hydrogen. Forrest’s Fortescue Future Industries aims to start producing 15 million tons a year of green hydrogen from renewable generation by 2030. Read also: Europe’s energy crisis isn’t over yet for Iberdrola by Sybilla Gross Bloomberg by Ananda Teresia, Fransiska Nangoy & Bernadette Christina Munthe Reuters Labourers march towards the National Monument (Monas) complex during a protest in Jakarta, Indonesia, on Jan 14, 2023. antara foto

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tuesday january 17, 2023 26 The E dge C E O m o rning brief world (Jan 16): UK Prime Minister Rishi Sunak plans to strengthen anti-protest legislation, giving police additional powers to clamp down on demonstrations even before they’ve caused any disruption. The government on Monday will propose an amendment to its own Public Order Bill — currently working its way through the House of Lords — to broaden the definition of what constitutes “serious disruption,” according to a statement from Sunak’s office. “We cannot have protests conducted by a small minority disrupting the lives of the ordinary public: it’s not acceptable and we’re going to bring it to an end,” Sunak said in the statement. “The police asked us for more clarity to crack down on these guerrilla tactics, and we have listened.” The legislation is aimed at strengthening the police’s ability to deal with protests such as those in recent years from environmental campaigners at Just Stop Oil and Extinction Rebellion, who have brought traffic and public transport to a standstill by blocking bridges, motorways and London’s subway network. (Jan 16): Teachers may join hundreds of thousands of UK employees taking industrial action as Prime Minister Rishi Sunak’s administration battles to contain a surge of worker unrest over pay that’s failing to keep pace with the surging inflation. The National Education Union is poised to announce the results of a strike ballot at about 5 p.m. on Monday, with General Secretary Mary Bousted confident the vote will meet the minimum threshold required. The union would then have two weeks to notify employers before taking action, giving time for talks. The headteachers’ union will also announce ballot results. A vote in favour of strikes would pile more pressure onto Sunak, whose administration is already grappling with industrial action by nurses, ambulance drivers and rail workers. A strike by teachers could have knock-on repercussions in the wider workforce, with parents forced to stay at home. Nurses plan to strike again on Wednesday and Thursday, with ambulance workers planning a walkout next week. On Feb 1, some 100,000 civil servants have announced plans to join the industrial action. Another 30,000, including 28,400 at His Majesty’s Revenue and Customs, the tax authority, began balloting for strike action on pay, pensions and job security, according to the Public and Commercial Services Union. Sunak plans to strengthen antiprotest laws with police powers UK teachers may go on strike as Sunak battles to contain unrest (Jan 16): Germany’s finance minister plans to slam the debt brake back on this year, even as he spends billions to cushion the fiscally-conservative country from the energy crisis, a challenge that requires some uncharacteristic rule-bending. Europe’s biggest economy has had plenty of reasons to justify the decision to suspend its constitutionally enshrined limit on net new borrowing in 2020, when the bloc was engulfed by a pandemic that turned out to be only the first of a series of crises. Three years later, with Germany flirting with recession as it pays the price of decades of dependence on cheap Russian fossil fuels, its fiscally hawkish finance chief wants the government to return to a stable culture of spending only a limited amount more than it takes in. At issue is how Christian Lindner, who leads the business-friendly Free Democrats in a coalition government with the Social Democrats and Greens, uses accounting gymnastics to reconcile restoring the debt brake with the €200 billion (US$215 billion) he has unleashed to cushion businesses and households from the energy crisis. “Yes, Germany had to exploit its financial strength, but to reintroduce the debt brake with such a show, while de facto continuing to suspend it, this hypocrisy concerns me greatly,” said Ulrike Malmendier, a member of the German Council of Economic Experts. Data published on Friday shows the budget deficit shrank to 2.6% of output in 2022. This year it’s expected to widen again to as much as 4.5%. That would breach the European Union’s 3% cap — though it’s currently suspended and may undergo a revamp. Lindner, who has described himself as a friendly hawk, has argued against loosening European deficit and debt rules. He campaigned on a fiscally prudent platform, and sought to block tax increases and secure protection for the debt brake in coalition talks that saw him become finance minister at the end of 2021. He secured approval for the energy aid package in the face of competition concerns among neighbors with less fiscal firepower in 2022, while the brake was still temporarily lifted, and yet the money will mainly be spent this year and next. This was possible through a special fund that circumvented the regular budget. Lindner has already set aside a similarly structured pot of €100 billion for Germany’s military. And he isn’t the first to use such tools, as more than 20 special funds already exist outside the budget to finance public spending. Such a “shadow budget” is “not appropriate for a country like Germany, which values sound budgeting and transparency,” according to Malmendier, who is an economics professor at the University of California, Berkeley. Germany’s debt dilemma tempts finance chief into bending rules by Kamil Kowalcze Bloomberg by Alex Morales Bloomberg by Alex Morales Bloomberg Bloomberg Read the full story Read the full story Read the full story

TUESDAY JANUARY 17, 2023 27 THEEDGE CEO MORNING BRIEF WORLD (Jan 16): Morgan Stanley is joining a growing chorus of brokerages in upgrading their ratings on GoTo Group as its share price starts to recover, reflecting views that risks appear reasonably priced into current valuations. The recent plunge in GoTo has brought multiples down to reflect risks to the group’s revenue base and profitability, and GoTo “now deserves this premium for its faster 2021-24e revenue” growth annually of 68% versus peers at 42%, said Morgan Stanley. The broker upgraded the Indonesian ride-hailing and e-commerce provider to equal-weight from underweight. GoTo is well-positioned to capture “the continuing structural growth of this digital consumer and the cyclical recovery GoTo shares pricing in profitability risks, Morgan Stanley says (Jan 16): Shares in Tencent Holdings Ltd have nearly doubled from a recent low on growing signs that China is preparing to end its crackdown on major tech firms as well as optimism about the country’s reopening. The online giant’s stock has risen 95% in Hong Kong since Oct 28, when it dropped to its lowest since 2017, as approvals for industry funding and new games have begun to trickle in again. In a major tailwind for the industry, some policymakers have called for a halt to China’s harshest regulatory curbs. Bejing’s approval for billionaire Jack Ma’s Ant Group Co to raise US$1.5 billion (RM6.47 billion) is the clearest indication yet that the government is easing up. The abrupt cancellation of the firm’s initial public offering in 2020 marked the start of China’s regulatory squeeze, which at one point wiped out more than US$2 trillion from the sector’s valuation. The recent gains in Tencent and peers including Alibaba Group Holding Ltd, whose local shares have jumped 83% in a similar span, also reflect broader investor optimism about China’s pro-growth policies and reopening after the pandemic. Tencent shares nearly double from October low as crackdown eases BY ABHISHEK VISHNOI Bloomberg BY ISHIKA MOOKERJEE BLoomberg Read also: Tencent says it fired more than 100 employees over corruption in 2022 Read also: Google-backed ShareChat cuts 20% of workforce post Covid-19,” analysts including Mark Goodridge wrote in a note Sunday. The stock has plunged about 74% since a peak in June, dismaying investors after it was listed with much fanfare in April. Many traders remain concerned over its high valuations despite a smaller market base than peers such as Grab Holdings Ltd. and Sea Ltd. — given its focus on Indonesia — as well as a weak outlook on its profitability. GoTo is trading at an enterprise value-to-revenue of 4.3 times for 2023 versus a 3.5 times multiple for peers, which is justified given the scarcity premium for Indonesian internet names, Morgan Stanley analysts wrote. Still, intense but improving competition and its lack of clear market leadership will mean that significant cash burn for GoTo will remain until 2025, they added. The brokerage cut its target price by 41% to 110 rupiah. In December, UBS AG and BNI Securities upgraded their ratings on GoTo as valuations became attractive after the Indonesian firm’s premium versus its peers narrowed. The company has taken a number of measures to address market concerns about competition and the global economic slowdown, including cutting its workforce and selling assets. The dramatic rebound in the Hang Seng Tech Index over the past three months indicates that a sector once labelled “uninvestable” is regaining clout in investor portfolios. Tencent has rejoined the club of the world’s 10 most valuable companies for the first time in six months.

TUESDAY JANUARY 17, 2023 28 THEEDGE CEO MORNING BRIEF WORLD TOKYO (Jan 16): Hiroki Sawai, who raises 2,200 cattle at his ranch in western Japan, received an alert on his phone one evening last year: a calf had fallen and wasn’t getting up. He called on staff to check the barn immediately as fallen cows often require prompt aid and if ill, treatment. The calf, which had tripped over some steps, was rescued, and Sawai was spared the loss of an animal that could be worth over one million yen (US$7,820) when sold as wagyu — high-quality Japanese beef known for its distinctive fat marbling and loved by gourmands. The technology behind the alert, sold by Tokyo-based startup Desamis Co, involves sensors which monitor the movements of livestock. Algorithms analyse the data to detect unusual behaviour and possible illness. Even an accidental fall by a young calf or fattened cattle, which can weigh as much as a tonne, could lead to death without quick attention. “With the human eye, we can only tell that a cattle is sick after it’s been so for a while, but the sensors can catch it at an early stage,” said Desamis CEO Koji Seike, who founded the company in 2016 after selling livestock equipment for Panasonic Holdings Corp. Its technology also detects when heifers are in heat and ready for insemination, bolstering the chances of reproduction. Such technology has come into focus in the past few years, with Japan’s government highlighting wagyu farming as a business in need of support. Prime Minister Fumio Kishida visited wagyu beef producers in southern Japan in October, vowing to aid livestock farmers struggling with soaring feed prices due in part to Russia’s war in Ukraine, as well as a weaker Japanese yen. In addition to promising aid to counter bigger fodder costs, the government has been offering subsidies for investments in technology such as Desamis’ sensors. The hope is that such intelligent monitoring technology will help cattle farmers in the same way precision farming and crop management software helped curb labour costs and boost yields in agricultural farming. While boosting exports of Japanese food and drinks was once considered difficult due to costs, Asia’s burgeoning wealth and a weaker yen have lifted overseas demand for everything from the country’s strawberries and oysters to whisky and sake in recent years. The government, hoping for the same with wagyu, has set a target of expanding annual beef exports to 360 billion yen by 2030 — about seven times the 2021 level of 53.7 billion yen, according to trade data. Farmers say overseas wagyu fans help make up for weak domestic demand, parWagyu goes high tech to meet surging demand from rich Asians (Jan 16): The divide between the richest and poorest families in the UK is being made worse by sky-high inflation and “unnecessary” tax breaks, a pair of think-tanks warned. The UK’s least well-off households are significantly more pessimistic about their ability to keep spending than their wealthier counterparts, according to data from the Centre for Business and Economic Research and market research company YouGov. The research estimates that around 60% of the population, skewed to the lower end of the income scale, have burned through any savings they made when shops and restaurants shuttered during Covid lockdowns and are now using the cash to maintain everyday spending as the cost of living crunch bites. A report from the Resolution Foundation, also published on Monday, said the UK’s savings incentives are “not fit for purpose” as the rich pocket most of the £7 billion (US$8.55 billion) offered in tax cuts and government payments while 750,000 families have no buffers at all. The figures highlight the growing chasm between Britain’s households. While economic data on Friday showed output holding up better than expected, the vast majority of consumer spending is thought to have been propped up by wealthier families. The cost of living crisis is now top of the agenda for those heading to the World Economic Forum at Davos, with leaders worrying that sky-high energy and food prices could prove an unsustainable burden on the world’s most vulnerable people. Families around the UK are struggling to Inflation and tax breaks making inequality worse, UK groups say BY LUCY WHITE Bloomberg BY HIROMI HORIE & KURUMI MORI Bloomberg ticularly in premium cuts such as sirloin. While Japanese consumers haven’t been swayed by the global movement to eat less meat, many have been put off by the high prices of luxury wagyu. The wholesale price of an A4-ranked wagyu was 2,360 yen per kilogramme as of October last year, a 36% increase compared to April 2020, when demand for inbound tourists and dining out fell due to the Covid outbreak. At the retail level, a wagyu chuck eye roll fetches more than three times similar cuts of Australian or American beef. Desamis, which competes with Tokyo-based, farm management software company The Better and, globally, Dutch tracking and security software maker Nederlandsche Apparatenfabriek NV, says its sensors are worn by around 80,000 wagyu cows, roughly 4.4% of such cattle in Japan. The company expects that to grow in five years to around one million, roughly half of all wagyu cows in Japan, as a labour shortage makes it even more pressing for farmers to manage herds more efficiently. Sawai, who started using the sensors last April, said while staff still monitor cows in person, the technology allows them to spot issues early and remotely. “What we want to do is discover problems sooner, before they progress into something more complicated. As a result, they eat more feed, they develop better builds and the quality of the meat is better,” he said. “I think that using this technology means we can sell and export high-quality beef in a more stable way.” deal with rising costs, and the Trussell Trust and Independent Food Aid Network previously reported a surge in people using food banks for the first time. Millions of households also say they’re forced to skip on meals, showers or sufficient clothing, according to a December study by the Joseph Rowntree Foundation. The Resolution Foundation criticised successive governments for failing to encourage poorer households to save, saying tax reliefs such as ISAs, Lifetime ISAs and savings allowances had done little to encourage resilience among low-income Britons. The richest tenth of households are set to gain just under £800 on average from government policies next year, according to the Resolution Foundation, around 20 times the £38 received by the poorest tenth. “Government incentives to save do exist but are not fit for purpose – prioritising tax reliefs for those with very large amounts of savings over supporting real increases in the numbers of people with savings,” said Molly Broome, an economist at the Resolution Foundation.

TUESDAY JANUARY 17, 2023 29 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (Jan 13, 2023) CAPESIZE The Capesize market had a positive opening on Monday followed by consecutive declines on the timecharter routes. The Cape5TC fell over US$2,000 this week, settling a tick above the US$10,000 threshold on Friday. A few period fixtures were reported, including a 171,000-dwt 2013-built vessel open Caofeidian last week fixing for about six to eight months at 85% of the C5TC. A 180,000mt 2006-built open Zhoushan on 1 January was fixed for about four to six months at US$10,500 per day and was then relet for loading 170,000mt 10% iron ore from Saldanha Bay in early February to Qingdao at US$11.75 per metric ton. The Brazil to Qingdao trade closed the week at US$17.708, whilst in the Pacific the west Australia to Qingdao trade was priced between US$6.99 to US$7.18 throughout the week. PANAMAX It proved to be another week of further considerable losses for the Panamax market, retracting back to values witnessed in August 2022. With countless ballasting and spot tonnage unfixed, resistance from owners was scarce as tonnage far outweighed demand. This resulted in charterers driving down bids — especially in the North Atlantic region. Here rates reduced close to US$3,000 week-on-week on route P1A with little sign of abating. Several East Coast South America trips to Singapore-Japan reported fixed for first half February arrival dates with slightly better bids seen on Thursday, but this looked short lived for now. Asia fared no better despite reasonable Indonesian coal demand and a fair level of Australia coal enquiry. With seemingly strong confidence for the rest of 2023, relatively solid period interest again with rates still at a premium to spot. Several deals concluded including an 82,000-dwt delivery China achieving US$16,500 for 12 months employment. ULTRAMAX/SUPRAMAX The malaise continued across the board with limited fresh enquiry in most regions combined with an abundance of prompt tonnage keeping downward pressure on rates. Some brokers commented that with the Lunar New Year festivities coming at the end of next week this trend was set to continue. Limited period activity surfaced as Charterers sort opportunities; a 61,000-dwt open West Africa was heard fixed for six to nine months worldwide trading at US$13,000. Also, an Ultramax open in China was heard to have failed at US$12,000 for four to six months trading. In the Atlantic, pressure remained from the US Gulf and a 58,000-dwt fixed a trip to Italy with petcoke at US$12,750. From the Continent-Mediterranean it was a similar story despite a steady flow of cargo. A 57,000-dwt fixed from East Mediterranean to West Africa at US$10,000. Little joy from Asia and a 58,000-dwt open North China was heard fixed at US$3,500 for a trip to the Arabian Gulf. Further south, there was limited enquiry from Indonesia and a 57,000-dwt open Hong Kong fixed a trip via Indonesia to South China at US$3,750. HANDYSIZE With limited enquiry across all regions, we have seen the erosion of rates continue. In East Cost South America, pressure remained from the larger sizes and a 38,000- dwt fixed from Rio De Janeiro to Japan at US$15,000. A 35,000-dwt fixed delivery Recalada to the Continent at US$11,500 and a 34,000-dwt fixed from Morocco via Paramaribo to India at US$9,700. In the Mediterranean, a 36,000-dwt fixed basis delivery passing Canakkale via the Black Sea with redelivery in Algeria and an intended cargo of grains at US$8,000. In the US Gulf, a 38,000-dwt fixed from Jamaica to Iceland with an intended cargo of Alumina at US$14,000. Tonnage in South East Asia has seen levels soften with a 38,000- dwt fixing from Singapore via Western Australia to Japan with an intended cargo of grains at US$8,000. Meanwhile, a 40,000- dwt logger type was rumoured to have been fixed for two laden Legs from Samalaju at US$12,750. CLEAN The CPP tanker market remained mostly under pressure this week and this was reflected in the BCTI dropping by 18.5% to 870. In the Middle East Gulf, LR fixtures have begun to emerge as the week went on and a widely reported TC1 voyage (75kt MEG/Japan) at WS180 has led the index to WS178.13 (-53.31) level at time of writing. On a voyage West TC20 has also lost US$1,214,000 to US$4,342,857. Much like their larger sisters the LR1s have been continually marked down this week with TC5 losing 65.85 points to WS217.86 and TC8 shedding US$1,366,000 to US$3,716,700. By comparison MRs look to be improving in the region. This was after a big injection of enquiry with TC17 bottoming out in the mid WS220s mid-week and now back up to around the WS240 level. West of Suez, LR Freight - much like the Middle East - have come off this week. TC16 is currently resting at WS200.71 (-37.15) and TC15 is pegged at US$4,008,333 after dropping US$870,834. In North west Europe, MRs have seen decent activity. However, the excess tonnage overshadowed this. Rates have slipped again with TC2 dipping 15.55 points to WS178.89 and TC19 ending up at WS192.86 (-18.57). Read the full report

TUESDAY JANUARY 17, 2023 30 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) SAPURA ENERGY BHD 454.70 0.005 0.050 42.86 799.0 WELLSPIRE HOLDINGS BHD 231.74 0.000 0.430 86.96 306.2 REVENUE GROUP BHD 139.90 0.265 0.750 11.11 361.6 VELESTO ENERGY BHD 110.00 0.005 0.180 20.00 1,478.8 SERBA DINAMIK HOLDINGS BHD 91.10 -0.005 0.015 50.00 55.6 ICON OFFSHORE BHD 61.40 0.005 0.100 5.26 270.5 TOP GLOVE CORP BHD 61.20 0.065 0.890 -1.66 7,126.5 VINVEST CAPITAL HOLDINGS BHD 50.80 0.020 0.205 7.89 198.7 EDUSPEC HOLDINGS BHD 45.90 0.000 0.015 -25.00 45.7 ALAM MARITIM RESOURCES BHD 45.90 0.005 0.025 0.00 38.3 XOX BHD 43.70 0.000 0.025 66.67 126.3 NATIONGATE HOLDINGS BHD 42.50 -0.010 1.050 0.00 2,177.6 KNM GROUP BHD 39.40 0.005 0.050 0.00 183.8 DAGANG NEXCHANGE BHD 35 -0.005 0.56 9.8 1767.5 DATAPREP HOLDINGS BHD 33.9 0.005 0.23 2.22 155.2 REACH ENERGY BHD 30.3 0 0.045 0 49.3 NWP HOLDINGS BHD 28.00 0.005 0.255 6.25 144.7 EWEIN BHD 27.5 0.11 0.51 47.83 153.8 PRESS METAL ALUMINIUM HOLDINGS 26.4 0.12 5.2 6.56 42846 RGB INTERNATIONAL BHD 24.6 0.005 0.21 16.67 323.6 Data as compiled on Jan 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) FOCUS DYNAMICS GROUP BHD 0.025 66.67 3,289.5 25.00 159.3 REVENUE GROUP BHD 0.750 54.64 139,853.6 11.11 361.6 EWEIN BHD 0.510 27.50 27,540.9 47.83 153.8 ALAM MARITIM RESOURCES BHD 0.025 25.00 45,891.6 0.00 38.3 BCM ALLIANCE BHD 0.025 25.00 750.2 0.00 50.9 METRONIC GLOBAL BHD 0.025 25.00 2,613.6 25.00 38.3 G3 GLOBAL BHD 0.030 20.00 769.0 0.00 87.1 ASIA POLY HOLDINGS BHD 0.135 17.39 11,184.0 22.73 129.4 SILVER RIDGE HOLDINGS BHD 0.190 15.15 1,878.4 40.74 37.6 MALAYSIA SMELTING CORP BHD 2.180 12.95 4,899.9 42.48 915.6 SYSTECH BHD 0.285 11.76 9,306.2 21.28 98.6 SAPURA ENERGY BHD 0.050 11.11 454,708.8 42.86 799.0 KNM GROUP BHD 0.050 11.11 39,386.3 0.00 183.8 PLS PLANTATIONS BHD 0.970 10.86 123.8 4.30 387.7 VINVEST CAPITAL HOLDINGS BHD 0.205 10.81 50,836.3 7.89 198.7 TAS OFFSHORE BHD 0.215 10.26 180.0 16.22 38.2 LAMBO GROUP BHD 0.055 10.00 1586 0.00 84.7 KIM TECK CHEONG CONSOLIDATED 0.230 9.52 6,605.5 15.00 156.8 JOHAN HOLDINGS BHD 0.060 9.09 814.6 9.09 70.1 TRIVE PROPERTY GROUP BHD 0.060 9.09 472.4 -14.29 75.8 Data as compiled on Jan 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) RED IDEAS HOLDINGS BHD 0.060 -60.00 50.0 -83.33 6.0 PEGASUS HEIGHTS BHD 0.005 -50.00 1,167.9 -50.00 54.1 COMPUGATES HOLDINGS BHD 0.010 -33.33 406.6 0.00 45.8 DOLPHIN INTERNATIONAL BHD 0.010 -33.33 1,504.9 -60.00 13.4 MMAG HOLDINGS BHD 0.015 -25.00 2,281.6 -40.00 36.3 GREEN OCEAN CORP BHD 0.015 -25.00 262.0 -25.00 31.7 SERBA DINAMIK HOLDINGS BHD 0.015 -25.00 91,140.0 50.00 55.6 ALDRICH RESOURCES BHD 0.025 -16.67 3,789.8 -16.67 27.8 PUC BHD 0.030 -14.29 554.0 -14.29 51.6 XOX NETWORKS BHD 0.030 -14.29 102.9 0.00 34.1 HUBLINE BHD 0.040 -11.11 5,341.7 0.00 171.6 CYL CORP BHD 1.060 -10.17 2,050.2 0.00 106.0 SALCON BHD 0.195 -9.30 3,113.4 -15.22 196.5 OVERSEA ENTERPRISE BHD 0.100 -9.09 627.9 5.26 113.5 GIIB HOLDINGS BHD 0.100 -9.09 1,279.0 11.11 59.1 MQ TECHNOLOGY BHD 0.050 -9.09 17879.6 0.00 62.6 LYC HEALTHCARE BHD 0.205 -8.89 213.5 2.50 121.8 TA WIN HOLDINGS BHD 0.055 -8.33 4618.7 0 188.3 ORGABIO HOLDINGS BHD 0.345 -8.00 7,145.9 -1.43 85.5 CHINA OUHUA WINERY HOLDINGS 0.060 -7.69 150.3 -7.69 40.1 Data as compiled on Jan 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) KUALA LUMPUR KEPONG BHD 21.760 -0.420 409.90 -2.68 23,460.7 MALAYSIA AIRPORTS HOLDINGS 7.070 -0.130 3,741.70 7.77 11,730.5 CYL CORP BHD 1.060 -0.120 2,050.20 0.00 106.0 RIVERVIEW RUBBER ESTATES BHD 3.350 -0.100 6.80 -7.54 217.2 RED IDEAS HOLDINGS BHD 0.060 -0.090 50.00 -83.33 6.0 VITROX CORP BHD 7.900 -0.090 803.20 3.27 7,463.1 KEIN HING INTERNATIONAL BHD 2.080 -0.080 824.70 -1.89 226.5 HONG LEONG FINANCIAL GROUP 18.900 -0.080 70.70 1.61 21,645.1 MALAYAN BANKING BHD 8.780 -0.080 13,282.80 0.92 105,835.2 K SENG SENG CORP BHD 1.540 -0.070 597.10 6.94 199.6 DIALOG GROUP BHD 2.530 -0.070 1,409.80 3.27 14,275.7 COMPUTER FORMS MALAYSIA BHD 2.860 -0.060 4,862.90 13.49 746.5 KELINGTON GROUP BHD 1.520 -0.050 980.60 10.95 977.4 DUFU TECHNOLOGY CORP BHD 1.790 -0.050 1,089.20 0 948.7 Y&G CORP BHD 0.800 -0.050 3.10 13.48 174.8 D&O GREEN TECHNOLOGIES BHD 4.610 -0.050 509.80 7.71 5,704.1 AMMB HOLDINGS BHD 4.140 -0.050 1,349.90 0.00 13,701.0 KOTRA INDUSTRIES BHD 6.000 -0.050 18.40 -9.09 888.0 APEX HEALTHCARE BHD 3.470 -0.050 102.70 -1.42 1657.2 WESTPORTS HOLDINGS BHD 3.72 -0.05 1617.3 -2.11 12685.2 Data as compiled on Jan 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) HEXTARTECHNOLOGIES SOLUTIONS 25.100 0.880 167.5 47.13 3,229.1 HEINEKEN MALAYSIA BHD 26.500 0.700 249.6 5.16 8,005.6 FRASER & NEAVE HOLDINGS BHD 24.500 0.600 199.5 13.53 8,986.1 NESTLE MALAYSIA BHD 135.500 0.500 30.8 -3.21 31,774.8 AJINOMOTO MALAYSIA BHD 14.220 0.420 35.1 8.72 864.6 REVENUE GROUP BHD 0.750 0.265 139,853.6 11.11 361.6 MALAYSIA SMELTING CORP BHD 2.180 0.250 4,899.9 42.48 915.6 MALAYSIAN PACIFIC INDUSTRIES 33.980 0.240 73.4 18.15 6,758.5 BRITISH AMERICAN TOBACCO 11.900 0.140 150.8 6.06 3,397.8 PADINI HOLDINGS BHD 3.670 0.140 436.5 9.55 2,414.5 RAPID SYNERGY BHD 15.980 0.140 7.0 0.13 1,708.2 AMWAY MALAYSIA HOLDINGS BHD 5.230 0.130 64.0 4.60 859.7 PIE INDUSTRIAL BHD 2.950 0.120 647.9 13.46 1,132.9 PRESS METAL ALUMINIUM HOLDINGS 5.200 0.120 26,442.0 6.56 42,846.0 BONIA CORP BHD 2.530 0.110 897.0 11.45 507.1 KESM INDUSTRIES BHD 7.000 0.110 43.8 -0.28 301.1 SFP TECH HOLDINGS BHD 2.180 0.110 2,235.3 21.11 1,744.0 EWEIN BHD 0.510 0.110 27,540.9 47.83 153.8 ORIENTAL HOLDINGS BHD 6.940 0.100 20.9 2.21 4,305.3 BATU KAWAN BHD 22.700 0.100 9.3 1.79 8929.7 Data as compiled on Jan 16, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DOW JONES 34,302.61 112.64 0.33 S&P 500 3,999.09 15.92 0.40 NASDAQ 100 11,541.48 81.87 0.71 FTSE 100 7,856.16 12.09 0.15 AUSTRALIA 7,388.18 60.08 0.82 CHINA 3,227.59 32.29 1.01 HONG KONG 21,746.72 8.06 0.04 INDIA 60,092.97 -168.21 -0.28 INDONESIA 6,688.06 46.23 0.70 JAPAN 25,822.32 -297.20 -1.14 KOREA 2,399.86 13.77 0.58 PHILIPPINES 7,045.48 93.94 1.35 SINGAPORE 3,283.60 -10.15 -0.31 TAIWAN 14,927.01 102.88 0.69 THAILAND 1,684.86 3.13 0.19 VIETNAM 1,066.68 6.51 0.61 Data as compiled on Jan 16, 2023 Source: Bloomberg CPO RM 3,850.009.00 OIL US$ 84.81-0.47 RM/USD 4.3175 RM/SGD 3.27 RM/AUD 3.0069 RM/GBP 5.2693 RM/EUR 4.6720