THE EDGE 22-February-2023

CEOMorningBrief WEDNESDAY, FEBRUARY 22, 2023 ISSUE 526/2023 www.theedgemarkets.com G-20 HOST INDIA TAPS SOFT POWER AS IT CHAMPIONS NEW WORLD ORDER p21 HOME: PKR lawmaker cautions Anwar against possible selective prosecution p2 Anwar urges authorities investigating Pandora Papers to not ‘take it lightly’ p4 AirAsia X sees fares above pre-pandemic levels as strong demand lifts profit p11 WORLD: Morgan Stanley’s Wilson says S&P 500 could drop 26% in months p18 Hong Kong’s budget dilemma is how to revive city and cut deficit p19 Bersatu information chief Datuk Wan Saiful Wan Jan SHAHRIN YAHYA/THE EDGE Report on Page 15. Putin halts nuke pact with US, vows to push war in Ukraine Report on Page 3. Bersatu’s Wan Saiful, Adam Radlan plead not guilty to soliciting and receiving bribes linked to Jana Wibawa

wednesday february 22, 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] PKR lawmaker cautions Anwar against possible selective prosecution PM assures no interference in court cases involving Cabinet ministers KUALA LUMPUR (Feb 21): Datuk Seri Anwar Ibrahim must be careful not to misuse his vast powers as the prime minister and finance minister, a backbencher said on Tuesday, saying he was worried about possible selective prosecution by the governmment against political rivals. “Power corrupts and absolute power corrupts absolutely,” said Hassan Abdul Karim (PKR-Pasir Gudang). “I do not have mala fide or ill intention, but I just want to remind [Anwar] that power tends to corrupt.” Speaking in the Dewan Rakyat, Hassan said he was concerned upon learning that Parti Pribumi Bersatu Malaysia (Bersatu) information chief Datuk Wan Saiful Wan Jan had been charged with two counts of bribery in the Sessions Court earlier in the day. “A few days ago, my friend from Pagoh (Tan Sri Muhyiddin Yassin) was investigated by MACC (Malaysian Anti-Corruption Commission), before that a former finance minister under the fourth prime minister was also investigated in relation to the Pandora Papers,” he said, noting that International Trade and Industries Minister by Chester Tay theedgemarkets.com Bernama Tengku Datuk Seri Zafrul Tengku Abdul Aziz had also been summoned by MACC. “We can summon all these prominent figures, ministers and deputy ministers, because we have the power, we are the executive,” the lawmaker said, noting that the Yang di-Pertuan Agong had stressed on the need for good governance in his royal address in the Dewan Rakyat last week. The King, in his address, had endorsed the current government’s “commitment KUALA LUMPUR (Feb 21): Prime Minister Datuk Seri Anwar Ibrahim has given his assurance that he will not interfere in court cases involving any Cabinet minister. Anwar said he had informed the attorney general and the chief justice that this country must stand up to the rule of law. The prime minister said he will not take action before there is a transparent and independent due process in court. “Action cannot be taken based on prosecution and before a court judgement,” he said in reply to a supplementary question from Ahmad Fadhli Shaari (PN-Pasir Mas) during the minister’s question time at the Dewan Rakyat on Tuesday (Feb 21), on whether the appointment of Cabinet ministers with court cases will affect the courts’ decisions. Anwar said he would not apologise if he was perceived as being harsh in dealing with corruption, while stressing that the actions taken were based on evidence and did not involve personal interests. “I can assure you that it will not affect the Malaysian Madani principle and policy. I have instructed (relevent agencies) to take home and determination to aggressively combat corruption by focusing on the areas of procurement, enforcement and largescale corruption”. “I worry that if there is no reminder [to Anwar], selective prosecution may happen, [resulting in] political parties that are opposed to us becoming victims,” said Hassan. “[But] if there is a basis [to these prosecutions], then there is nothing wrong.” Hassan also mentioned that no Malaysian prime minister had concurrently assumed the position of finance minister prior to Tun Dr Mahathir Mohamad. “I am a good friend of my party president YB Tambun (Anwar). He has integrity and is committed to fighting corruption. But I have to remind him because he does not only hold the position of prime minister but also holds the finance minister portfolio,” he said. “I do not want a repeat of the 1MDB incident during which the prime minister also held the position of finance minister,” he said, adding that Malaysia must avoid becoming a failed state like Sri Lanka. action. I do not care from which party including from (Parti) Keadilan (Rakyat) itself. “I want the people to understand that the country cannot survive without good values and morals. We can progress economically but there will be damage in terms of governance, which also involves corruption and the abuse of power,” Anwar said. Meanwhile, the prime minister said that his deputy Datuk Seri Dr Ahmad Zahid Hamidi (BN-Bagan Datuk) has carried out his (Ahmad Zahid’s) duties in compliance with the principles and the policies outlined by the government. “There was a case whereby a GLC (government linked company) under his (ministry) had proposed some immediate actions (pertaining to the approval of a project) without tender. He (Ahmad Zahid) had stated that he must obey the instructions of the prime minister and all must go through the proper tender process,” Anwar said. Prime Minister Datuk Seri Anwar Ibrahim (front, left) seen at Parliament House on Tuesday, Feb 21. Shahrill Basri/The Edge

wednesday february 22, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): Parti Pribumi Bersatu Malaysia (Bersatu) president Tan Sri Muhyiddin Yassin has claimed that the party is a victim of “selective prosecution”, after its information chief Datuk Wan Saiful Wan Jan was charged with corruption on Tuesday (Feb 21). The former prime minister was quoted as saying that every party needed funds to operate and this included funds from corporate supporters. Muhyiddin said Pakatan Harapan (PH) and Barisan Nasional (BN) had also received funds from party supporters including from the business community, and questioned as to why their leaders were not charged in court, reported Free Malaysia Today (FMT). “We actually expected that this would be done by the PH-BN government to weaken Bersatu, after seeing growing support for Perikatan Nasional (PN),” said the PN chairman. Earlier, Wan Saiful and Bersatu deputy division chief Adam Radlan Adam Muhammad were charged at the Sessions Court here on bribery allegations in connection with the Jana Wibawa programme. Bersatu victim of selective prosecution, says Muhyiddin KUALA LUMPUR (Feb 21): Parti Pribumi Bersatu Malaysia (Bersatu) information chief Datuk Wan Saiful Wan Jan and the party’s deputy division chief Adam Radlan Adam Muhammad have claimed trial after they were separately charged in the Sessions Court here with soliciting and accepting bribes in relation with the Jana Wibawa Programme established to uplift Bumiputera contractors. The two individuals each faced two charges in the wake of investigations by the Malaysian Anti-Corruption Commission (MACC), on allegations that contractors chosen under the programme — mooted during the Perikatan Nasional administration — had deposited a total of RM300 million into Bersatu’s accounts. Wan Saiful, who is also Tasek Gelugor MP, was charged with soliciting an unspecified amount from Nepturis Sdn Bhd via Lian Tan Chuan, to facilitate its pre-approval as a contractor by the government in April 2022 for the Central Spine Road project worth RM232 million. The second charge against Wan Saiful was for receiving a bribe amounting to RM6.962 million from Nepturis, through his company’s CIMB bank account under WSA Advisory Group Sdn Bhd. Wan Saiful, who is also former chairman of the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN), was accused of committing the offences between July 8 and Sept 30 in 2022. He pleaded not guilty to both charges before Sessions Court judge Azura Alwi, and was given a bail of RM400,000. At a separate court, businessman Adam Radlan faced two charges of soliciting and accepting bribes in relation to the same programme. Adam, who is Bersatu’s deputy division chief for Segambut, allegedly solicited a bribe amount of 3.5% to 7% of the total amount of a road works project worth RM47.8 million from Mat Jusoh Mamat, who is the managing director of MIE Infrastructure & Energy Sdn Bhd. The bribe was allegedly for Adam to get an approval letter from the government to help MIE secure the project. For the second charge, Adam allegedly received RM500,000 in his CIMB bank account from Jusoh Mamat as an inducement for helping MIE secure the road works project from Jalan Sg Adam to Kg Banat, Perlis. Sessions Court judge Suzana Hussin set bail at RM120,000 for Adam. All four charges against Wan Saiful and Adam are framed under Section 16(a)(a) of the Malaysian Anti-Corruption Commission (MACC) Act 2009. They are punishable under Section 24 of the same Act, which carries up to 20 years’ jail and a fine of not less than five times the amount of the bribe or RM10,000, whichever is higher, upon conviction. Bersatu’s Wan Saiful, Adam Radlan plead not guilty to soliciting and receiving bribes linked to Jana Wibawa by Timothy Achariam theedgemarkets.com by Surin Murugiah & Adam Aziz theedgemarkets.com Both Wan Saiful and Adam were ordered to surrender their passports to the court. Case management for both cases were separately set for March 22. Their trials were attended by Bersatu president and former prime minister Tan Sri Muhyiddin Yassin, the party’s secretary-general and Opposition Leader Datuk Seri Hamzah Zainudin, and other top brass of the party. Jana Wibawa, or Program Jana Ekonomi Pemerkasaan Kontraktor Bumiputera Berwibawa, was mooted during the Perikatan Nasional administration, where Bersatu was a component party. The government at the time said the programme was set up to improve the capacity of Bumiputera contractors in the construction industry, as well as to expedite project execution to spur the nation’s economic recovery post Covid-19. Last week, Muhyiddin was summoned by the MACC to record his statement on the programme. It was reported that Muhyiddin was among individuals being investigated by the agency over the matter, but he has claimed that he was called in to give his statement and was not a suspect. International Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, who served as finance minister under Muhyiddin, on Tuesday also confirmed that he had been summoned by the MACC over the matter. On Feb 15, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi announced that RM5.7 billion worth of rural development projects under the Jana Wibawa scheme had been postponed. This, said the Umno president, was to review whether contracts had been awarded in accordance with procurement processes and governance requirements set by the Treasury. Muyiddin, who was also called in by the Malaysian Anti-Corruption Commission (MACC) on Feb 18 in the course of its investigation, said he has given full cooperation on the matter. “As far as I am concerned, there is nothing that I believe was wrongdoing on my part, but I leave everything to the MACC to investigate,” Bernama reported him as saying. “I also urge Bersatu members to remain calm and not take any action that could threaten public order. The party leadership has already taken appropriate action according to legal channels,” he reportedly said.

wednesday february 22, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): The government will provide a special briefing to Members of Parliament next week on the development of its legal battle with the self-proclaimed “heirs” of then Sulu Sultan Mohamet Jamal Al Alam. De facto law minister Datuk Seri Azalina Othman Said told the Dewan Rakyat on Tuesday (Feb 21) that the Cabinet had on Feb 17 established a special secretariat as a focal point to handle issues related to this case. “This special secretariat will be chaired by me, while the deputy chairman is Solicitor General II, or his replacement. Members include those from the Ministry of Foreign Affairs, Ministry of Communications and Digital, Research Department of Prime Minister’s Department, Sabah Attorney General and local legal experts,” she said. Azalina (Umno-Pengerang) invoked Section 14(1)(i) of Dewan Rakyat’s Standing Order on Tuesday to make a statement in the August House, as her session was not originally scheduled in the Order Paper. Additionally, Azalina said a war room was set up to assist the special secretariat in monitoring the legal cases initiated and international media statements, and coordinating a global strategy in handling this issue. Govt to brief Dewan Rakyat next week on legal battle with ‘Sulu heirs’, says Azalina KUALA LUMPUR (Feb 21): Malaysia cannot afford to allow more siphoning of illicit money out of the country, and hence authorities should not “take it lightly” in investigating these activities, especially those implicated in the Pandora Papers, said Prime Minister Datuk Seri Anwar Ibrahim. “This kind of action requires a clear political determination. There were not many voices to take [Pandora Papers] seriously, including in the past administration. There were no pressures from political leaders, to the extent there was reluctance to take action, because it involves prominent figures in the country,” Anwar told the Dewan Rakyat on Tuesday (Feb 21). Anwar was responding to Datuk Seri Dr Noraini Ahmad (Barisan Nasional-Parit Sulong), who requested the former to state Putrajaya’s stance on Pandora Papers. “What happened was a complex web that was so sophisticated, using trust, shell companies from Singapore, to Bahamas and Cayman, most of them for the purpose of tax evasion. There are legitimate activities — that is why I said investigations are needed,” said Anwar. “What I can guarantee is those agencies report to me. My instruction is clear. Don’t take it lightly, take this as a lesson, and this country cannot afford to allow this to continue,” he added. Anwar, who is also the finance minister, said he is satisfied with the impartial investigations conducted so far, with certain individuals being summoned to explain money stored offshore. Anwar also opined that it is important for the Ministry of Finance to improve transparency in its tendering process to stop further leakages from the country. “The practice of using this excuse of helping Bumiputera by taking money cannot be continued. “There are policies to help Bumiputera. We can also have limited tenders among Anwar urges authorities investigating Pandora Papers to not ‘take it lightly’ by chester tay theedgemarkets.com by chester tay theedgemarkets.com Bumiputera. These are not prohibited, but we cannot use the excuse of helping Bumiputera to ask corporates to give money to individuals or [political] parties, like what was practised before,” he said. Anwar also urged fellow Members of Parliament to not take sides or protect criminals who have siphoned money out of the country. “Pandora Papers mentioned over 3,000 names. Some are legitimate. All these need investigations. I urge fellow MPs and friends, all 222 of you, to take a firm attitude. Don’t protect anyone by disputing immediately whether it is a politically motivated action. “If monies up to hundreds of billion or million ringgit were siphoned out, yet we ignore and protect them because they support us, it will be disastrous to the country,” he said. Although many names were mentioned, Anwar said investigations will focus on prominent figures like former PMs and finance ministers. Among the agencies involved in the ongoing investigations include Bank Negara Malaysia, the Royal Malaysian Police, Malaysian Anti-Corruption Commission, National Anti-Financial Crime Centre, Inland Revenue Board, and Labuan Financial Services Authority. The minister updated that so far, the government has appointed the following international law firms to represent Malaysia for the legal battle in the respective countries: i. Messrs Uría Menéndez in Spain ii. Messrs Bredin Prat in France iii. Messrs Arendt & Medernach SA in Luxembourg iv. Messrs De Brauw Blackstone Westbroek in Netherlands On top of that, Azalina said Messrs Slaughter & May in the UK, Messrs Chaffetz Lindsey LLP in the US and Messrs Allen & Gledhill in Singapore will advise and handle cases that challenge the recognition and enforcement of a US$14.92 billion award by annulled Spanish arbitrator Gonzalo Stampa. Azalina reiterated the government’s position that Stampa’s appointment as an arbitrator has been annulled by Madrid’s court in 2021, and that this is an unusual case that involves sovereignty issue, hence it is deemed non-arbitrable. Azalina also argued that Stampa’s alleged award has also breached the principle of international public policy, as it involves Malaysia’s diplomatic immunity and jurisdictional immunity and sovereignty.

wednesday february 22, 2023 5 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): The prices of chicken and eggs are expected to be floated after June, as part of the government’s efforts to overcome food shortages, said Agriculture and Food Security Minister Datuk Seri Mohamad Sabu. Mohamad, who is also known as Mat Sabu, said the prices would be floated, so that the Ministry of Domestic Trade and Cost of Living could monitor and assess fluctuations in prices of the goods compared to the current ceiling prices. “We are confident that the Ministry of Agriculture and Food Security will satisfy demand for chicken and eggs (through price floating), and even [though] now it is sufficient, but in five or six months’ time, it will be more sufficient if no new undesirable matters (such as disasters) arise,” he said when interviewed at his office here. In January, Mohamad reportedly said that his ministry was studying the need to float the price of eggs in the market and provide targeted subsidies to the bottom 40% household income group, and that discussions were being held with the Ministry of Finance, the Ministry of Economy, and the Ministry of Domestic Trade and Cost of Living over the matter. Mat Sabu: Prices of chicken, eggs to be floated after June KUALA LUMPUR (Feb 21): Prasarana Malaysia Bhd said that work on Phase 2 of the Putrajaya Mass Rapid Transit (MRT) Line is more than 95% completed, and a final test will be carried out at the end of this month. President and group chief executive officer Mohd Azharuddin Mat Sah said work to complete it is being actively carried out through tests by MRT Corp Sdn Bhd officers and engineers, contractors and the Land Public Transport Agency. “They are monitoring the tests being carried out to ensure that they pass the KUALA LUMPUR (Feb 21): Prasarana Malaysia Bhd and a transportation company, Kumpool, are conducting a pilot van-hailing service project between residential homes and public transport stations. Transport Minister Anthony Loke Siew Fook said the public can use the service provided at a reasonable fare of RM1 for each use. “We are ready to add this service to other stations in existing networks,” he said during the question-and-answer session in response to a supplementary question from Datuk R Ramanan (Pakatan Harapan-Sungai Buloh) on the government’s efforts to encourage more optimal and comprehensive use of public transport. It is learned that the van-hailing service operates in the Wangsa Maju here and Alam Megah, in Shah Alam in Selangor. Loke said his ministry is also discussing with e-hailing companies to introduce the concept of “ride-sharing” to allow their drivers to pick up more than one passenger. “This will directly lower the fare rate for e-hailing users,” he added. stipulated guidelines and, InsyaAllah, it can be operational by March, although the date will be announced by the government (the Ministry of Transport),” he said. He said this after a visit by a delegation from the Malaysian National News Agency (Bernama), which was headed by its chief executive officer Roslan Ariffin, at Menara UOA Bangsar here on Tuesday (Feb 21). Commenting on the visit, Mohd Azharuddin said it had triggered collaboration between Bernama and Prasarana to publicise and inform the public of the latest issues regarding the public transport system. “This is a comprehensive collaboration in terms of giving suggestions as well as providing information to reporters, digital radio and television. This is also the first time we have forged a comprehensive collaboration with the media,” he said. He explained that, during the visit, he had received various proposals on how to improve the land public transport system in the capital besides the establishment of the collaboration between the two agencies. Prasarana: Phase 2 of Putrajaya MRT Line 95% completed Bernama Bernama Bernama The current retail ceiling price in Peninsular Malaysia for standard chicken is RM9.40 per kg, and for eggs, it is 45 sen for Grade A, followed by 43 sen for Grade B, and 41 sen for Grade C. In Langkawi, Sabah, Sarawak and Labuan, the maximum prices of the items differ based on zones and districts. Meanwhile, commenting on grain corn, which is almost 100% imported from Argentina and Brazil — affecting the prices of chicken and eggs — Mohamad said the government is encouraging cultivation of the crop in Malaysia this year. “In a few more months, [grain corn crops] will start yielding, and there are already companies that want to implement [the purchase of grain corn] similar to [the agricultural model of] Padiberas Nasional Bhd (Bernas),” he said, adding that studies of grain corn cultivation are actively being carried out in Perlis. Loke: Prasarana piloting van-hailing service between homes and public transport stations Zahid Izzani The Edge

WEDNESDAY FEBRUARY 22, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 21): The Institute for Democracy and Economic Affairs (Ideas) is urging the government to explore new sources of revenue in Budget 2023, due to be re-tabled this Friday (Feb 24). Chief executive officer Dr Tricia Yeoh said the institute welcomes the government’s hints that the upcoming budget will focus on fiscal consolidation and debt management; however, budget consolidation should not rely solely on spending cuts. In a statement on Tuesday (Feb 21), she said the government revenue is already low and trails comparative peers. “With government revenue expected to continue declining in 2023 due to moderating crude oil prices, the government should consider revising the personal income (tax), or sales and services tax. “A conversation around the return of a form of consumption tax will also need to urgently happen, in parallel with a revised social safety net,” she said. The International Monetary Fund (IMF) recommends a tax yield of 15% of the gross domestic product (GDP) as the minimum required for sustainable development. KUALA LUMPUR (Feb 21): RAM Ratings has projected that Malaysia’s bond yields would stay elevated with the US Federal Reserve (Fed) holding on to its hawkish stance. The credit rating agency said in a statement on Tuesday (Feb 21) that foreign investors may remain on the sidelines under these circumstances, while local investor appetite should remain strong. It said foreign bond buying had retreated in February as strong US economic data continue to fuel the Fed’s defensive mode, pushing back investors’ bets that the Fed will stop hiking rates in the near term. “The bond selloff caused the 10-year US Treasury (UST) yield to surge to 3.82% as of Feb 17 after touching 3.52% at end-January,” RAM Ratings said. “The benchmark 10-year Malaysian Government Securities (MGS) yield tracked this development with a quick climb back to 3.93% as of Feb 17, after having shed 23.9 basis points (bps) month-on-month to 3.83% as at end-January.” Foreign investors remained net buyers of MGS and shariah-compliant Government Investment Issues (GII) for the third consecutive month in January (RM2.7 billion) amid a softer Fed messaging on further rate hikes, it said. “The overall fund inflow into ringgit bonds (RM498.3 million) was however moderated by outflows in shorter-term Malaysian Treasury Bills (MTB) and Malaysian Islamic Treasury Bills (MITB),” RAM Ratings added. In 2021, Malaysia’s tax revenue only stood at 11.2% of the country’s GDP. This comes after a decade of steady decline from a high of 15.6% of the GDP in 2012. Ideas hopes govt will explore new revenue sources in Budget 2023 Malaysia’s bond yields may stay elevated as Fed remains hawkish, says RAM Ratings KUALA LUMPUR (Feb 21): The Ministry of Health (MOH) aims to re-table the Control of Tobacco Product and Smoking Bill 2022 in the near future so that its enforcement can begin next year. Through an answer published on the Parliament’s website on Tuesday (Feb 21), the ministry said it had done a review and will go ahead with the tabling of the bill with regard to the amendments agreed to by the special select committee through a statement published on Oct 5 last year. This was in response to a question from Wong Chen (PH-Subang) who wanted to know the ministry’s timeline to table the bill. The bill was tabled for its first and second readings at the third meeting of the fifth term of the 14th Dewan Rakyat session in August 2022. However, the bill was referred to the special select committee for review. According to the MOH, the tabling of the bill was delayed due to the dissolution of Parliament on Oct 10, 2022. MOH to re-table Control of Tobacco Product and Smoking Bill 2022 soon Bernama Bernama BY HAILEY CHUNG theedgemarkets.com BLOOMBERG

wednesday february 22, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): Dagang NeXchange Bhd (DNeX) will collaborate with national applied research and development (R&D) centre Mimos Bhd to explore opportunities to leverage the government’s strategic digitalisation projects and initiatives. The pair inked a memorandum of understanding (MOU) for the partnership on Tuesday (Feb 21) to undertake government activities pertaining to the development of enhanced digital technology capabilities, software development, networking, system integration, consultation services, cloud computing and the fourth industrial revolution. “In addition, the partnership can pave the way for both parties to partake in mega information technology (IT) projects, leveraging on each other’s capabilities and expertise, creating exceptional value and facilitating semi(-skilled) and skilled technology transfer,” DNeX said in a statement on Tuesday. DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the partnership will enable both parties to leverage each other’s technological know-hows to provide comprehensive solutions for various IT projects, including those in enhancing the government’s operations and delivery of services. “This is in line with the government’s aspiration to reduce bureaucratic red tape, improve efficiencies, and address leakages and wastages issues while enhancing its revenues across all operations,” Syed Zainal added. He added that the partnership aspires to serve as a springboard to accelerate the country’s digital transformation by capitalising on both parties’ breadth and depth of offerings and technologies. Meanwhile, Mimos chairman Datuk Seri Ibrahim Ahmad said he believes the collaboration is very significant, as it allows the R&D centre to further broaden its reach in achieving its main goal of offering technology solutions to the industry, further developing local companies and talents, creating technopreneurs and jobs, and ultimately transforming Malaysia into a global player. DNeX noted that it has a proven track record in delivering e-services to the government including for Malaysia’s National Single Window (NSW), integrated government financial and management system (iGFMAS), and Malaysia Hasil Integrated Taxation Systems (HITS). At noon break on Tuesday, shares in DNeX were down one sen or 1.59% at 62 sen, giving the group a market capitalisation of RM1.96 billion. Read also: Analysts lower target prices for DNeX after 2Q earnings miss DNeX partners Mimos to explore government digitalisation projects KUALA LUMPUR (Feb 21): Malaysia’s electrical and electronics (E&E) industry is likely to see slower growth in 2023 compared to last year, amid global headwinds, says the Malaysia Semiconductor Industry Association (MSIA). MSIA president Datuk Seri Wong Siew Hai said Malaysia’s E&E sector had grown 18% in 2021 and 30% in 2022. “We continue to grow, but it’s not easy... because of the headwinds, including the pending recession and tensions between US and China. “So, we expect to see a slowdown, especially in the correction of consumer products,” he told reporters after the launch of MSIA 2022 E&E Survey by Deputy International Trade and Industry Minister Liew Chin Tong. In a statement on Tuesday (Feb 21), Wong said globally, the semiconductor industry’s revenue is forecast to grow to US$1 trillion in 2023, from more than US$500 million last year and thus, it has to seize the opportunity as Malaysia has been a hub for the electrical and electronics (E&E) industry. He said the E&E industry is the country’s golden goose and therefore, Malaysia needs to nurture and grow the industry. “The semiconductor is going to be the foundation for all technology. It is going to propel growth, not only for Malaysia Malaysia’s E&E industry to see slower growth in 2023, says MSIA but the world. I would encourage the government and acknowledge the Economic Planning Unit (EPU) because they have recognised the E&E industry as the country’s high-impact and strategic industry. “And therefore, we need to get a special focus on how we can take and seize the opportunity that we have in front of us,” Wong said. According to MSIA’s survey, the outlook for 2023 remains soft, with 50% of the surveyed E&E companies expecting a decline in orders, while 25% of them are still expecting an increase in orders, as some product categories would see continued growth, while other categories would see a decline. Meanwhile, 65% of the surveyed E&E companies are still pushing ahead with planned capital expenditures and investments. “This is important as Malaysia has already attracted E&E investments of RM186.2 billion since January 2020 (2020: RM15.6 billion, 2021: RM148.0 billion; and from January to September 2022: RM22.6 billion). “This reflects the long-term prospects of the industry, and businesses’ confidence in Malaysia as a location for semiconductors and electronics,” Wong said. Read the full story Bernama by Izzul Ikram theedgemarkets.com MSIA president Datuk Seri Wong Siew Hai the edge file photo Low Yen Yeing /The Edge

wednesday february 22, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): Sunway Construction Group Bhd’s (SunCon) net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) declined 29.48% year-on-year (y-o-y) to RM45.65 million from RM64.73 million, dragged mainly by lower contribution from its construction segment. The year-on-year variation in the construction segment was due to normalisation of works to full capacity and peak progress in projects, as well as re-calibration of margin for projects nearing completion, SunCon said. Earnings per share during the quarter decreased to 3.54 sen from 5.01 sen in the corresponding quarter a year ago. Revenue for the quarter also fell 19.66% to RM503.43 million from RM626.61 million in the previous year. The group declared a second interim single-tier dividend of 2.5 sen per share, payable on April 6. This brings the total dividend for the full year ended Dec 31, 2022 (FY2022) to 5.5 sen, compared with 5.25 sen for FY2021. Nonetheless, SunCon’s FY2022 net profit increased 20.07% y-o-y to RM135.18 million from RM112.59 million, while revenue rose 24.64% to RM2.16 billion from RM1.73 billion. The encouraging set of financial performance in FY2022 was underpinned by better performance from both construction and precast concrete segments. Group managing director Liew Kok Wing, in a statement, pointed to the group’s “record profit before tax [of RM184.06 million] in FY2022”. It also surpassed its FY2022 new order book target to end the year at RM2.6 billion, compared to the target of RM2 billion, Liew said. “We continue to make good progress in our regionalisation and new business expansion efforts. The group has recently secured our maiden hyperscale data centre project valued at approximately RM1.7 billion in Sedenak Tech Park, Johor,” he added. Shares of SunCon settled three sen or 1.85% higher at RM1.65, giving the group a market capitalisation of RM2.13 billion. Other financial results: Nestlé Malaysia 4Q earnings up 19%, declares RM1.22 dividend Sports Toto’s 2Q profit rises 22%, pays 2.5 sen dividend Innoprise pays 2.5 sen dividend despite 4Q net profit tumbling 71% Supercomnet ends FY2022 with record profit despite weaker 4Q SunCon’s 4Q profit down 30% on weaker construction segment KUALA LUMPUR (Feb 21): DRB-Hicom Bhd slipped into the red with a net loss of RM100.06 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), against a net profit of RM117.47 million a year ago. The quarterly loss was partly due to impairment loss on assets in certain subsidiary companies, coupled with lower profit from Proton, which was attributable to the product mix and a lower share of profits from joint ventures and associated companies. The last time the group sank into the red was 1QFY2022, with a net loss of RM25.74 million and a revenue of RM3.07 billion. For 4QFY2022, DRB-Hicom posted a loss per share of 5.18 sen, versus earnings per share of 6.08 sen a year ago. Quarterly revenue, however, increased 5.42% year-onyear (y-o-y) to RM4.35 billion, from RM4.12 billion previously. No dividend was declared for the quarter under review. Nonetheless, the group performed well for FY2022. Despite losses in the postal division and properties division, it achieved an annual net profit of RM187.71 million, against an annual loss of RM296.42 million for FY2021. Annual revenue rose 25.32% to RM15.51 billion from RM12.38 billion, lifted by contributions from almost all its business segments, except for the postal division. Three sectors led the sterling 25.32% revenue growth in FY2022, with the automotive sector recording the highest revenue increase of RM2.89 billion to RM11.09 billion, from RM8.20 billion for FY2021. It noted that national carmaker Proton concluded 2022 on an upbeat note with 141,432 units sold, marking a rise of 23.3% y-o-y and the best annual figure since 2013. “The rise in automotive demand driven by the government’s sales tax holiday boosted revenue for Proton and other marques under the DRB-Hicom umbrella, sending revenue rising more than 35.2%. “In addition to Proton and other automotive distribution companies, the increased demand also trickled down to manufacturing and engineering companies in the group, as the national total industry volume set a new record of 720,658 units in FY2022,” it added. The aerospace and defence sector also DRB-Hicom ends FY2022 on high note despite 4Q loss of RM100 mil recorded an increase in revenue of 41% to RM874.91 million for FY2022, as the defence unit recorded higher deliveries of products, while the aerospace unit benefited from the global resumption of commercial flights following the relaxation of Covid-19-enforced travel bans. As for the banking sector, revenue for FY2022 was 13.7% better than the previous year, reaching RM1.27 billion, mainly contributed by higher financing income and volume from property and personal financing to customers. On its outlook, DRB-Hicom expects its performance to remain positive in FY2023. The conglomerate said the introduction of new models across all marques within the group, including Honda, Mitsubishi and Isuzu, is expected to boost the automotive sector and entice buying interest among consumers. This will also provide a corresponding boost to the manufacturing and engineering companies within the group. As for the banking sector, it will continue to strengthen the business by intensifying its digitalisation efforts and technological capabilities. Meanwhile, the postal sector, it said, remains focused on executing its transformation plan in an increasingly challenging business environment. “The rest of the group’s sectors, including defence and aerospace, services and properties, will continue to explore growth opportunities, and at the same time optimise operational excellence,” it added. DRB-Hicom shares closed four sen or 2.31% lower at RM1.69 on Tuesday (Feb 21), valuing the group at RM3.27 billion. by Justin Lim theedgemarkets.com by Justin Lim theedgemarkets.com

WEDNESDAY FEBRUARY 22, 2023 9 THEEDGE CEO MORNING BRIEF subscribe.theedgemalaysia.com *Prices indicated are for the Klang Valley only. Collection PRINT & DIGITAL PACKAGE PRICE 1 YEAR SUBSCRIPTION RM270* DIGITAL ONLY PACKAGE PRICE 1 YEAR SUBSCRIPTION RM200 Subscription THE EDGE MALAYSIA 1 PRINT + 3 DIGITAL ACCESS THE EDGE SINGAPORE 1 DIGITAL ACCESS THE EDGE MALAYSIA 3 DIGITAL ACCESS THE EDGE SINGAPORE 1 DIGITAL ACCESS

wednesday february 22, 2023 10 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 21): MR DIY Group (M) Bhd’s substantial shareholder Creador Funds has trimmed its stake further in the home improvement retailer, having sold 289.4 million shares since September 2022, with its deemed interest down to 5.614% currently. Creador, who listed MR DIY together with the company’s founder Tan Yu Yeh of Bee Family Ltd, held 15.3% stake in the company via Hyptis Ltd when it was listed on Bursa Malaysia on Oct 26, 2020. Hyptis’ latest disposal on Tuesday involved 92.45 million shares or a 0.98% stake in MR DIY, company filing showed. This amounts to a total of 289.41 million MR DIY shares or 3.07% sold by Hyptis since June last year, resulting in Creador’s deemed interest being pared down to 667.01 million shares or a 5.614% stake. Bee Family, which is the largest shareholder in MR DIY, has 50.76% interest in the company. Its other substantial shareholder is Platinum Alphabet Sdn Bhd with 6.1% stake, according to company filings. Shares of MR DIY settled five sen or 2.78% lower at RM1.75 on Tuesday, giving the group a market capitalisation of RM16.51 billion. Over the past one year, the counter has depreciated 28.57% from RM2.45. The company listed on the Main Market at RM1.60, valuing the group at RM10 billion at the time. MR DIY posted a marginal increase in net profit to RM136.08 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM134.55 million a year earlier. This as quarterly revenue rose 9.27% to RM1.07 billion from RM975.39 million in 4QFY2021. The group also declared a lower interim dividend of 0.6 sen, compared with 0.9 sen paid a year ago, bringing its yearto-date payout to 2.4 sen per share, from 2.95 sen per share. For FY2022, MR DIY’s net profit rose 9.52% to RM472.95 million from RM431.83 million in FY21, although earnings per share slipped to 5.54 sen from 6.88 sen. This as revenue rose 18.15% to RM3.99 billion from RM3.37 billion, as net margin slipped to 11.87% from 12.8% in FY21 and 14.7% in FY20. Creador pares down stake in MR DIY to 5.61% KUALA LUMPUR (Feb 21): EA Technique Bhd (EATech), which is in the midst of preparing its financial regularisation plan, said there could be a potential entry of a new largest shareholder in the Practice Note 17 (PN17) group. The marine vessels operator said it is in discussions with a party that could subscribe to the group’s new securities, which would result in the party acquiring a controlling stake in the group. “Pursuant thereto, should the shareholdings of the potential offeror and persons acting in concert (PACs) in EATech increase from below 33% to above 33%, the said party will be obligated to undertake a mandatory general offer (MGO) for the remaining shares of EATech not held by the offeror and PACs,” EATech said in a bourse filing. If the two parties reach an agreement, it will still need to be approved by Bursa Malaysia Securities and the group’s shareholders, the group added. There has been speculation in the market that businessman Tan Sri Rashid Manaf, who is one of the founders of Eco World Development Group Bhd, could take up a substantial stake in EATech. EATech says new party may acquire controlling stake in group The Edge Malaysia, in its Feb 6-12 edition, reported that Rashid might be acquiring shares from Sindora Bhd, a unit of Johor Corp (JCorp). Through Sindora, JCorp holds a 50.05% stake in EATech. JCorp is also an indirect shareholder of EATech through the 2.43% stake held by Kulim (M) Bhd. EATech slipped into PN17 status in February last year, as its shareholders’ equity of RM5.96 million as at Dec 31, 2021 was less than 50% of its share capital of RM179.76 million. For the nine-month period ended Sept 30, 2022, EATech narrowed its net loss to RM2.94 million from RM45.37 million a year earlier, amid lower depreciation, gain on disposal of vessels and lower foreign exchange losses. Nine-month revenue, however, decreased to RM111.91 million from RM124.57 million mainly due to expiry of certain contracts. EATech’s shares closed up 5% or 1.5 sen at 31.5 sen on Tuesday (Feb 21), giving the group a market capitalisation of RM167.11 million. The counter has risen 85.29% year to date. by Syafiqah Salim theedgemarkets.com by Hailey Chung theedgemarkets.com

WEDNESDAY FEBRUARY 22, 2023 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 21): Having gained 61.73% in share price over the past year, Focus Point Holdings Bhd has proposed to undertake a bonus issue of up to 132 million shares on the basis of two bonus shares for every five existing shares held on the entitlement date to be fixed later. Based on the five-day volume weighted average price up to and including the latest practicable date (Feb 20) of RM1.27, the theoretical ex-bonus price will be 90.74 sen, according to the optical retail chain store operator’s filing. The proposed bonus issue of shares is expected to be completed by the second quarter of 2023. FY2022 net profit surges 155% Separately on its financial performance, Focus Point’s net profit rose 12.5% to RM10.45 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM9.29 million a year ago, driven by higher revenue from its optical and related products segment. Revenue for 4QFY2022 increased 7.46% to RM68.45 million from RM63.7 million in 4QFY2021. Net profit for FY2022 soared 155.23% to RM35.85 million from RM14.05 million in FY2021 amid higher contribution Focus Point plans two-for-five bonus issue; achieves record earnings in FY2022 KUALA LUMPUR (Feb 21): AirAsia X Bhd net profit in the sixth quarter for the financial period Dec 31, 2022 (6QFP2022) rose six-fold quarter-on-quarter to RM153.48 million from RM25.09 million on record average fare, higher load factor and a sharp increase in passengers carried. The group sees fare trends to hover above pre-pandemic levels albeit with some rationalisation on the back of high international air travel demand. The pandemic impact is “well behind us”, its chairman Tunku Datuk Mahmood Fawzy said in a statement, adding that AirAsia X is on a strong growth trajectory to support “significant” pent-up demand for affordable mid-range travel. “The group’s restructuring plan is progressing well as planned as it continues to provide scheduled passenger services where there is greatest demand,” Mahmood Fawzy said. In the quarter ended Dec 31 — historically AirAsia X’s strongest quarter — revenue rose three-fold to RM339.3 million from RM100.1 million in 5QFP22, the airline said. Quarterly earnings per share came in at 37 sen from six sen, it added. The group recorded lower maintenance and overhaul spend in the quarter at RM10.52 million from RM112.2 million in 5QFP22, coupled with lower finance costs AirAsia X sees fares above prepandemic levels as strong demand lifts profit BY ADAM AZIZ theedgemarkets.com BY SYAFIQAH SALIM theedgemarkets.com from the optical and related products, franchise management and food and beverage divisions. Full-year revenue jumped 46% to RM248.82 million from RM170.43 million driven by higher sales. This is Focus Point’s best full-year net profit and revenue since its listing in 2010, boosted by the full reopening of economic sectors, as well as the recovery of the retail segments and continued rising footfalls at malls. “Moving forward and with the economic uncertainty from the current geopolitical tensions and cautious consumer spending from inflationary pressure, the board anticiSource: Bloomberg Focus Point Holdings Bhd 0 5 10 15 Jan 27, 2022 Feb 21, 2023 0.6 0.9 1.2 1.5 Vol (mil) RM RM1.31 RM0.66 pates the group’s prospects to be challenging. “Notwithstanding the above, the group is confident of sustaining growth momentum from the various measures and strategies that the group had implemented which includes expansion of outlets in strategic locations and prioritise on operational and cost efficiencies,” it added. Shares of Focus Point rose three sen or 2.34% to close at RM1.31 on Tuesday with a market capitalisation of RM432.3 million, bringing a year-to-date gain of 47.19%. of RM6.73 million from RM59.38 million. In the quarter, AirAsia X flew 337,638 passengers, up 324% from 79,557 passengers in 5Q, although much lower than 1.61 million recorded immediately pre-pandemic in 4QCY19. This is in line with the group’s current seat capacity of 427,384 seats at end-2022, versus 1.994 million pre-pandemic. Passenger load factor (PLF) was recorded at 79% from 73% in 5QFP22 and 81% in 4QCY19, while average base far rose to a record RM866, versus RM625, it said. “Ancillary revenue per passengers marked RM196 during the quarter, up 17% compared with the same period in 2019,” it added. Meanwhile, AirAsia X’s 49%-owned Thai AirAsia X recorded RM353.6 million net profit in 6QFP22, on RM340.95 million forex gains and RM261.51 million revenue. “Barring the [forex] gain, TAAX’s core net profit would be RM12.8 million,” it said, However, the group’s share of loss of Thai AirAsia X which has not been equity accounted for amounted to RM517.4 million. Under accounting rules, any profits will only be recognised when its shares of the profits equals the share of losses previously not recognised. CONTINUES ON PAGE 12

WEDNESDAY FEBRUARY 22, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 21): Revenue Group Bhd said its decision not to proceed with the special review on its subsidiary Revenue Harvest Sdn Bhd is because the case is already being investigated by the Malaysia Anti-Corruption Commission (MACC). The e-payment solutions group said this in a filing on Tuesday (Feb 21) in response to Bursa Malaysia’s request for additional information on the decision. Last month, Revenue Group appointed LSP & Co, a corporate insolvency and restructuring firm, to undertake the special review following the suspension of its co-founders-cum-directors, Brian Ng Shih Chiow and Dino Ng Shih Fang, over alleged suspicious transcations involving payment by Revenue Harvest purportedly for the purchase of thermal paper rolls. Asked by Bursa to confirm whether the issues highlighted in the complaints on the suspicious transactions and the potential case of misappropriation of the group’s Revenue Group calls off special review on subsidiary as matter under MACC investigation KUALA LUMPUR (Feb 21): ACE Market-listed MMAG Holdings Bhd has suspended the executive functions of two directors of its 80%-owned air cargo logistics unit M Jets International Sdn Bhd (MJets), pending the outcome of a Malaysian Anti-Corruption Commission (MACC) investigation. The two MJets directors are Gunasekar Mariappan and Philip Phang Kin Ming, according to the transportation and logistics firm’s bourse filing on Tuesday (Feb 21). Their suspension came on the heels of MMAG learning that the MACC is conducting an investigation which relates to MJets. MMAG said the move to suspend the pair is to protect the company and MJets’ business, and to ensure business continuity. MMAG noted that it learnt of the MACC investigation after MJets informed the company that the anti-graft body raided the unit’s office on Feb 13 for information and documents pertaining to a report lodged with the MACC. “It was stated in the letter [received on Feb 19] that due to the MACC’s investigation, MJets’ bank accounts have been MMAG suspends two executives at 80%-owned MJets pending MACC probe outcome BY IZZUL IKRAM theedgemarkets.com BY JUSTIN LIM theedgemarkets.com asset were solely within the purview of MACC, the group said: “The company has made a police report on the above matter and will leave it to the police and MACC to investigate the complaints.” Revenue Group had on Jan 16 initiated legal action against Brian Ng and Dino Ng, seeking a declaration that the duo had violated listing rules, contravened the Capital Markets And Services Act 2007, and breached their duties as directors of the group. Revenue Group claimed that the two brothers had violated Bursa Malaysia’s listing requirements in relation to the group’s quarterly reports from the three months ended Dec 12, 2020 right up till Sept 30, 2022, but did not specify what the violations were. In its filing, Revenue Group also said that it intends to get its existing internal auditors or other auditors “to conduct an agreed-upon procedures to check all payments above certain amount to ensure that there are no further breaches”. Revenue Group’s share price fell 2.5 sen or 5% to 47.5 sen on Tuesday, giving the group a market capitalisation of RM229 million. The group has lost RM96.4 million in market value since the beginning of this year. FROM PAGE 11 Meanwhile, the group said its logistics unit Teleport has delivered RM36 million freight revenue to AAX in the quarter, up 26% with one additional operating aircraft. For the 18-month period ended Dec 31, 2022 (18MFP2022), AirAsia X recorded revenue of RM878.17 million, with 417,195 passengers carried in the period for a healthy PLF of 78%. Net profit for the period stood at RM32.98 billion, mainly arising from the completion of its debt restructuring in 1QCY2022. “For the year 2023, the Company expects to relaunch more of its profitable destinations and looks forward to the return to China with the announcement of the reopening of the country’s border in January 2023, in addition to our planned inaugural flight to Turkey this year,” said AirAsia X CEO Benyamin Ismail. “The company is optimistic of the upward fare trend in the near term as demand for international air travel remains high. While we expect this to somewhat rationalise, we do not foresee the fare trend dropping beyond pre-pandemic levels,” it said. The group expects to have 17 A330s in its active and operational fleet by end2024. This compares with 14 planes at end2022, of which seven are activated and operational. Thai AirAsia X’s fleet size stood at eight A330s, five of which are activated and operational. Shares of AirAsia X slipped half a sen or 0.74% to 67 sen, giving it a market capitalisation of RM2.77 billion. frozen,” the company added. The remaining 20% of MJets is owned by JT Aerotech Solutions Sdn Bhd. It is worth noting that the filing did not disclose the subject of the MACC’s investigation. According to MMAG, MJets was fully managed by Gunasekar and Phang, with the company having limited access. “MMAG is in the midst of seeking further clarification in detail from both Gunasekar and Phang, as they are the personnel in charge of the executive functions and day-to-day running without MMAG’s involvement,” the company added. “Further announcements shall be made in the event of material developments on this matter,” it continued. Shares in MMAG fell half a sen or 20% at two sen each, giving the company a market capitalisation of RM36.34 million.

wednesday february 22, 2023 13 The E dge C E O m o rning brief home Analysts maintain forecasts despite recent weaker data on Malaysia’s trade performance KUALA LUMPUR (Feb 21): Several research houses maintained their trade forecast for 2023 despite weaker than expected data on Malaysia’s external trade in January. UOB maintained its marginal export growth forecast of 1.5% given the lingering macro headwinds and year-ago high base effects, citing China reopening, Malaysia’s trade diversification and commodity prices as wildcards for export growth outlook although it flagged the semiconductor industry’s downcycle. MIDF Research has decided to maintain its projection for both exports and imports at 9.2% and 9.5% y-o-y respectively, while Maybank Investment Bank forecast export and imports growth to be at 4% and 6% respectively along with narrower trade surplus of RM240 billion, amid weaker major advanced economies — namely US and Europe. Official data showed a month-onmonth contraction in trade by 11.8%, exports (14.4%), imports (8.6%) and trade surplus (35.5%) due to shorter working days and longer festive holidays. This as exports rose 1.6% yearon-year to RM112.8 billion and imports went up 2.3% to RM96.7 billion in 2022, making total trade of RM207.5 billion with a trade balance of RM18.2 billion. — by Sufi Muhammad Five Sabah assemblymen leave Umno to join Hajiji’s Gagasan Rakyat with three ex-Warisan reps KOTA KINABALU (Feb 21): Five Sabah Umno assemblymen left the party on Tuesday (Feb 21) to join Parti Gagasan Rakyat Sabah (Gagasan Rakyat). The five, Sindumin assemblyman Datuk Dr Yusof Yacob, Datuk James Ratib (Sugut), Datuk Jasnih Daya (Pantai Dalit), Datuk Mohd Arsad Bistari (Tempasuk) and Datuk Hamild @ Hamid Awang (Balung), will be joined by three former Warisan representatives, namely Banggi assemblyman Mohammad Mohamarin, Norazlinah Arif (Kunak) and Chong Chen Bin (Tanjong Kapor). Speaking at a media conference with the other seven assemblymen, Yusof said they made the decision to quit Umno and join Gagasan Rakyat in line with the need for political stability in the country and Sabah, having realised that Sabah leaders should unite to champion the rights of the state as enshrined in the Malaysia Agreement 1963. He said prolonged political strife would only hinder Sabah’s development, and political stability is important to boost the confidence of local and foreign investors. — Bernama 572 reports of overseas job syndicate victims received as of Feb 20, says Mohamad Alamin KUALA LUMPUR (Feb 21): The Ministry of Foreign Affairs has received 572 reports involving Malaysians who were victims of job scam syndicates abroad as of Monday (Feb 20), the Dewan Rakyat was told on Tuesday (Feb 21). Deputy Foreign Minister Datuk Mohamad Alamin said the reports were received through the Malaysian Embassies in Bangkok (Thailand), Phnom Penh (Cambodia), Vientiane (Laos) and Yangon (Myanmar). “Out of the number, 403 individuals have been successfully rescued with 382 people sent home, including five people who returned last Sunday. “The remaining 21 people are being held at the detention depot while waiting for the same process, while another 169 are still being traced,” he said during the question and answer session. Mohamad Alamin said this in response to a question by Aminolhuda Hassan (PH-Sri Gading) regarding the steps taken to ensure the safety of Malaysians who have been victims of scams abroad, especially in Myanmar. — Bernama Proposed offer to lease Kampung Baru not suitable as it could jeopardise Malay rights, says PM KUALA LUMPUR (Feb 21): The government disagrees with the leasing proposal to develop areas in Kampung Baru in the federal capital, as it could jeopardise the rights of the Malays, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the finance minister, said the proposal to bring a private company to develop the area would adversely affect the interest of the Malays, and it is not acceptable. Apart from describing the 99-year lease offer as unsuitable, Anwar wants more space to study the proposal in detail. “We will discuss with the former federal territories minister, and ensure the development proceeds smoothly, and that the interest of the Malay community in Kampung Baru is protected. “A lease for 60, 99 years will create anxiety among the Malays. I can not accept the leasing proposal. Give me space to review and obtain the views of the local community,” he said during the PM’s question-and-answer session in the Dewan Rakyat on Tuesday (Feb 21). — Bernama news In brie f Govt to announce major digital investments in Malaysia soon, says Rafizi PUTRAJAYA (Feb 21): Major investments related to the digital economy in Malaysia will soon be announced by the government, said Economy Minister Rafizi Ramli. “The announcement is not only good news for the country’s economy but it should be welcomed and used as a catalyst for us to accelerate all plans in the national digital economy blueprint,” he said at the monthly meeting with the ministry staff here on Tuesday (Feb 21). Rafizi said the Ministry of Economy will organise a national “hackathon” next month, as part of the ministry’s efforts to drive innovation in mainstream society. “Previously, innovation was seen as negligible, meant only for certain people, but now, for our economy to develop, we need a large group of people who can contribute to developing highly innovative products and services. “As such, they will be accorded all necessary assistance via the systems that we have in the public and private sectors,” he said. — Bernama Shahrill Basri/ The Edge

wednesday february 22, 2023 14 The E dge C E O m o rning brief home PUTRAJAYA (Feb 21): Tan Sri Muhammad Shafee Abdullah argued before the Federal Court on Tuesday (Feb 21) that none of the 94 grounds of appeal made by Datuk Seri Najib Razak’s legal team to set aside his conviction and sentence in the SRC International Sdn Bhd case were addressed by the previous apex court bench that was led by Chief Justice Tun Tengku Maimun Tuan Mat. Shafee, who is Najib’s lawyer, claimed that only three paragraphs out of the eightpage judgement were about upholding the conviction and sentence, and it did not deal with the appeal grounds. He told the five-member bench, led by Chief Judge of Sabah and Sarawak Datuk Abdul Rahman Sebli, that some of the 94 grounds are technical. Shafee cited the position of a shadow director as one such issue. “This is the first case in the whole world where a shadow director is said to have dominion of the fund. It is a question of law, which the ad hoc prosecutor did submit for a day, as well as the defence,” he claimed. The senior counsel then said that nonetheless, the apex court did not address this matter, or any of the 94 grounds. He added that in any judgement by the court, the written grounds should clearly explain why it accepted or rejected any points of law raised. Regarding the abuse of power charge, Shafee asked how the court could consider Najib’s presence in the Cabinet meeting to approve the government guarantees for the RM4 billion Retirement Fund Inc (KWAP) loans as a violation of Section 23 of the Malaysian Anti-Corruption Act 2009. He further argued that even trial judge Datuk Mohd Nazlan Mohd Ghazali admitted that there were novel issues of law to be decided, like the issue of a shadow director, which the apex court chose not to address. Najib without proper legal representation Shafee said last August, the Federal Court did not allow the case to be adjourned, so that Najib’s new counsel, Hisyam Teh Poh Teik, could prepare for the main appeal. The court also did not allow Hisyam to discharge himself. “The decision by the court not to grant an adjournment and not allowing Hisyam to discharge himself was akin to letting the former PM defenceless in conducting the appeal. “You cannot expect the prosecution to give submissions favourable to the accused,” Shafee added. Shafee said that as Najib was without effective legal representation, the court should have fairly scrutinised the 94 grounds and addressed them as it is considered ex parte (in the interest of a single side) instead of ignoring it altogether. “It is as if the previous apex court bench was treating this as a judicial review technique and not a criminal case, and this is wrong,” he added. When Abdul Rahman asked Shafee to clarify what he meant, the lawyer replied that the apex court should adopt a rehearing of the appeal as this is a criminal case, and not go into the decision-making process of the Court of Appeal. “The apex court should consider whether the defence raised a reasonable doubt, and they should provide reason for their conclusion, as represented in the actual judgment [which was] just three paragraphs,” he added. In their decision to uphold the conviction and sentence, the bench led by Tengku Maimun said while they had perused the 94 grounds made, it found the case to be a straightforward one, and that the findings of the High Court on the defence were correct. “In concluding that the defence failed to raise a reasonable doubt on the prosecution case, we find that the learned High Court Judge had undertaken a thorough analysis of the evidence produced by the defence. “Thus, we are unable to conclude that any of the findings of the High Court, as affirmed by the Court of Appeal, were perverse or plainly wrong so as to warrant appellate intervention. We agree that the defence is so inherently inconsistent and incredible that it does not raise a reasonable doubt on the prosecution case. “In the circumstances, and having pored through the evidence, the submissions and the rest of the records of appeal, we find the apby Hafiz Yatim theedgemarkets.com Shafee complains Fed Court did not deal with 94 grounds of appeal in SRC case pellant’s complaints as contained in the petition of appeal devoid of any merit. On the totality of the evidence, we find the conviction of the appellant on all seven charges safe. We also find that the sentence imposed is not manifestly excessive,” Tengku Maimun said. Najib is serving 12 years in jail and a RM210 million fine after his conviction and sentence were upheld by the Federal Court, where he was found guilty on three counts each of criminal breach of trust, money laundering of RM42 million of SRC funds, and abuse of power with regard to the RM4 billion KWAP loans to SRC, a former subsidiary of 1Malaysia Development Bhd (1MDB). The former premier wants a review of the conviction and sentence maintained by the apex court, as well as a retrial. The bench, which also comprises Federal Court judges Datuk Vernon Ong Lam Kiat, Datuk Rhodzhariah Bujang and Datuk Nordin Hassan as well as Court of Appeal judge Datuk Abu Bakar Jais, will continue hearing the review on Wednesday with ad hoc prosecutor Datuk V Sithambaram’s reply. Read also: Shafee maintains CJ ought to have discharged herself from hearing Najib’s SRC appeal Zahid Izzani Mohd Said/ The Edge

wednesday february 22, 2023 15 The E dge C E O m o rning brief world appropriately for the security of our own country and that of our allies”, Blinken said. The extension of New START was in the security interests of both countries and “we remain ready to talk about strategic arms limitations at any time with Russia, irrespective of anything else going on, in the world or in our relationship”. The US and its NATO allies “want to inflict a strategic defeat on us and crawl into our nuclear facilities” by demanding inspections under the treaty, Putin said, describing the requests as absurd. The State Department accused Russia last month of breaching the terms of the treaty by refusing to allow inspectors on its territory and stonewalling US efforts to discuss the issue. Russia dismissed the criticisms and blamed the US, saying difficulties with New START were “a direct result of the hybrid war unleashed by the West against our country”. Putin gave his first state-of-the-nation address in nearly two years as Russia’s war in Ukraine nears the 12-month mark on Feb 24. He spoke on the anniversary of his decision to recognise Russian-backed separatists in Ukraine’s Donetsk and Luhansk regions as independent, whose defence he used as the excuse to mount the full-scale invasion. Despite the anticipation, the speech lasting nearly two hours covered mainly Putin’s usual efforts to shift the blame for the conflict to the US and its allies, where he claimed godlessness and paedophilia have become “the norm”. Much of the address also focused on domestic issues, with new benefits offered for veterans and their families, as well as defence workers. Read the full story Read also: Putin tells business elite: Don’t beg for Western money, invest in Russia (Feb 21): China urged the world to stop drawing parallels between Ukraine and Taiwan, part of Beijing’s efforts to distance itself from Russia and portray itself as a neutral force for peace. “China is deeply worried about the escalation of the Ukraine conflict and it possibly spiralling out of control,” Foreign Minister Qin Gang said on Tuesday in remarks in Beijing to roll out President Xi Jinping’s new “Global Security Initiative”. “We urge certain countries to immediately stop fuelling the fire, stop shifting blame to China and stop touting ‘Ukraine today, Taiwan tomorrow’,” Qin added. China in recent days has stepped up its efforts to draw a distinction between Ukraine and Taiwan, while rejecting US claims that it’s privately considering providing weapons to support Russian President Vladimir Putin’s war effort. Beijing plans to unveil a peace proposal in the coming days, an initiative met with scepticism among the US and its allies. Beijing has long considered the democratically run Taiwan as its territory, and has framed any support for the island’s leaders as a violation of sovereignty. The government in Taipei says that it is already a de facto nation in need of more recognition on the world stage. China’s stance has generated concern in the US and Europe. Asked at the Munich Security Conference whether China could reassure that audience that there would be no attack on Taiwan, top diplomat Wang Yi said that peace would hinge on opposing independence forces on the island. “It was never a country and it will absolutely not be a country as well,” Wang said of Taiwan. “That is the true reality of the Taiwan issue.” The Global Security Initiative is China’s effort to paint itself as a responsible major power and to provide an alternative to the US’s model of military alliances. Qin said that all countries are welcome to join the initiative and emphasised that no single country should be making decisions. A concept paper released by China’s state media Tuesday said the Asian nation supports countries involved to resolve the Ukraine crisis through talks. Other key points in the document include: • Differences and disputes between countries should be resolved via dialogue and consultation instead of war and sanctions • Great powers should assume due responsibilities and facilitate negotiations based on needs and wishes of the countries involved • Abuse of unilateral sanctions and “longarm jurisdiction” will only create more difficulties • Great powers have special and important duty in maintaining international peace and security, and should take the lead in promoting equality, cooperation and rule of law • China resolutely rejects nuclear war and calls on nuclear powers to communicate and cooperate China urges world to stop saying Taiwan is next after Ukraine (Feb 21): President Vladimir Putin said Russia will suspend its observation of the New START treaty with the US, dealing a blow to the last accord limiting their nuclear arsenals, as he vowed to press on with his faltering invasion of Ukraine. Russia is fighting for its “historic lands” in Ukraine and “will fulfil the tasks set stepby-step, carefully and consistently”, Putin told the Russian parliament and top officials in Moscow on Tuesday. Russia won’t be the first to resume testing of nuclear weapons as a result of its suspension of New START, though it will do so in response to any US test, he said. Russia’s suspension of the treaty is “deeply unfortunate and irresponsible”, US Secretary of State Antony Blinken said in Athens. Putin’s decision “makes the world more dangerous” and means the entire infrastructure of arms control has been dismantled, North Atlantic Treaty Organization Secretary General Jens Stoltenberg told reporters in Brussels, urging Russia to reconsider. US President Joe Biden extended the nuclear treaty by five years to 2026 as one of his first acts upon taking office in 2021 shortly before it was due to expire, after Putin had pressed his predecessor Donald Trump without success to agree to a deal. The Biden administration will “be watching carefully to see what Russia actually does” and ensure the US is “postured Putin halts nuke pact with US, vows to push war in Ukraine Bloomberg Bloomberg Reuters

wednesday february 22, 2023 16 The E dge C E O m o rning brief world (Feb 21): India and Singapore linked their systems that enable real-time money transfers between the two nations, as countries in the region seek to bring down barriers to the quick movement of funds. Reserve Bank of India’s Governor Shaktikanta Das initiated the first transaction with his counterpart Managing Director Ravi Menon, according to a statement on Tuesday by the Monetary Authority of Singapore. The India-Singapore payment connection is part of the trend in Asia where instantaneous fund transfers via mobile phones are happening, bypassing bank branches and doing away with high transfer fees. Singapore rolled out a similar connection with Thailand in 2021, and has said it’s working with Malaysia for such project. The idea for the linkage was mooted in 2018, Singapore’s Prime Minister Lee Hsien Loong said during the event. The so-called PayNow-UPI linkage is India’s first cross-border real-time payments systems connection and Singapore’s second. Singapore is among the top countries sending remittances to India, after the US, United Arab Emirates and the UK, accounting for almost 6% of inward flows in the fiscal year ended March 2021, according to RBI. For the following fiscal year, India saw foreign inward remittances of US$89 billion. Fund transfer DBS Group Holdings Ltd is the first participating bank from Singapore in this tieup. Apart from DBS, non-bank financial institution, Liquid Group, will also offer the cross-border fund transfers. The banks in India participating in this linkage are Axis Bank Ltd, DBS India, ICICI Bank Ltd, Indian Bank, Indian Overseas Bank and State Bank of India, the MAS statement said. For a start, selected customers of Singapore’s largest bank will be able to use the PayNow-UPI linkage to transfer funds of as much as S$200 (US$150) per transaction, capped at S$500 a day, according to a DBS statement. The service will be extended to all customers by March 31, and they will be able to transfer funds of as much as S$1,000 a day. Among banks in the city-state, DBS has been the most aggressive in expanding in India. It bailed out a struggling local lender more than two years ago, and has been looking to invest more in its India unit to accelerate growth. Read also: Parkson Retail Asia posts 88% increase in earnings to S$28.8 mil for FY2022 Singapore detains 15-year-old for planning terror attacks India, Singapore link systems for real-time money transfers (Feb 21): Singapore Airlines Ltd posted a third consecutive quarterly profit on Tuesday, pushing the damage of Covid further into the past as air travel continued its strong recovery in the three months through December. The company’s net income was S$628 million (US$469 million), rising from a profit of S$84.7 million a year earlier, it said in a statement on Tuesday. Revenue was S$4.85 billion, up from S$2.3 billion. After suffering record losses in the depths of the pandemic, Singapore Airlines bounced back with the restart of quarantine-free travel to its home market about a year ago. Passenger load factor — a measure of how many seats are filled on planes — was 87.4% for the quarter, up from just 9% in April 2020. That figure includes low-cost unit Scoot Airlines. “Demand for air travel is expected to be robust in the fourth quarter, supported by the recovery in East Asia as travel restrictions ease across China, Hong Kong, Japan, and Taiwan,” the company said. “Forward sales remain strong across all markets for both leisure and business travel, as well as all cabin classes.” Still, the industry faces geopolitical challenges, slowing economic growth, high cost inflation and elevated fuel prices, as well as likely intensifying competition, the airline said, adding that its financial position will help it “retain its leadership position”. Singapore Airlines and Scoot are putting on services to China as it reopens to international travel. As of the end of 2022, the two had a total of 188 passenger aircraft in their fleets. The flagship carrier will take delivery of two more widebody aircraft from Boeing Co and Airbus SE this quarter, and Scoot plans to add nine Embraer SA planes to its fleet starting next year. Singapore Airlines agreed to merge Vistara, its Indian affiliate, with Tata Group’s Air India Ltd in November, taking a 25.1% stake in the bigger entity for US$250 million. Air India placed an order for as many as 840 jets from Airbus SE and Boeing Co this month — the biggest in commercial aviation history and one that opens growth avenues for Singapore Airlines. Citigroup Inc analysts said the order is positive in the long term, but they rate Singapore Airlines as “sell”, saying it will lose S$300 million annually until the year ending March 2025 due to its association with Air India. It will also likely need to inject more capital into the Indian airline, they wrote in a note. Singapore Airlines’ shares rose 8.4% in the quarter through December, taking last year’s rally to 11%. The stock is up 4.5% so far in 2023. Singapore Airlines’ third-straight profit puts Covid firmly in past by Anurag Kotoky Bloomberg by Chanyaporn Chanjaroen & Suvashree Ghosh Bloomberg

wednesday february 22, 2023 17 The E dge C E O m o rning brief world (Feb 21): China’s internet firms are revving up efforts to outdo each other since Beijing began to wind back its bruising internet crackdown, spurring an abrupt surge in competition that’s threatening margins and spooking investors. A battle is brewing as companies that laid low or sought to limit expansion during the years-long crackdown now feel the shackles coming off. Beijing’s hasn’t sanctioned a return to the free-for-all that marked the sector’s pre-Covid heyday — but a flurry of aggressive campaigns announced by Big Tech in recent weeks is reviving the spectre of debilitating price wars. E-commerce leader JD.com Inc slumped more than 8% Tuesday after media reports it was planning a 10 billion yuan (US$1.5 billion) subsidy campaign to compete against rivals like PDD. Meituan is said to be expanding into Hong Kong and has embarked on a campaign to hire 10,000 people on the mainland — an effort to beat back heightened competition from new entrants such as ByteDance Ltd in the US$145 billion Chinese food arena. Away from online commerce, NetEase Inc and MiHoYo are upping their battle against gaming leader Tencent Holdings Ltd, while search-engine operator Baidu Inc is rolling out a new chat service based on artificial intelligence to try and wrest ad revenue away from the likes of Alibaba Group Holding Ltd and Tencent. The rush of initiatives come after Beijing appeared to grow less stringent in recent months in efforts to curb the industry’s influence. While the growth plans caused a run-up in a number of shares, they also come with broader risks: intensifying competition has the potential to severely depress profit margins. That concern is weighing on tech shares. The Hang Seng Tech Index has dropped more than 10% from its closing high for the year set in January. The gauge slipped as much as 3.7% Tuesday, and posted its lowest close of the year. Among the sector’s biggest stocks, Alibaba and Tencent both fell more than 4%. “They are willing to invest and compete again after two years of being cautious and cost-cutting,” said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore “The companies are optimistic about China’s consumption outlook and normalisation of the regulatory environment” but subsidy-based competition is negative for the entire e-commerce industry, he added. JD.com led losses on Tuesday following the reports of its subsidy campaign, which is aimed specifically at competing against budget shopping app Pinduoduo. The stock plunged the most in four months. Read the full story Read also: JD.com leads slide in Chinese tech stocks after subsidy report Star banker’s disappearance surprises even China’s state lenders China tech giants tumble as resurgence spurs fear of a price war (Feb 21): The Chinese economy’s debt ratio will likely slow this year, according to a top official newspaper, amid growing concerns over the sustainability of rising levels of local government borrowing. The macro leverage ratio — or total debt as a percentage of gross domestic product — rose to 273.2% as of the end of 2022 from 262.8% a year earlier, according to a commentary carried in the Economic Daily on Tuesday. The article cited a report published last week by a government-backed think tank. The newspaper is affiliated with the State Council, China’s Cabinet. The ratio could go up further this year, albeit at a slower pace, the article said. The think tank — the National Institution for Finance and Development — forecast the ratio to rise by 5.5 percentage points this year, or about half of last year’s increase, if economic growth reaches 5.5%. The consensus forecast for GDP growth this year is 5.2%, according to a Bloomberg poll of economists. The commentary came as concerns over local government finances and their ballooning debt are mounting. Income accrued by those governments was slashed last year during Covid Zero and the ongoing property downturn, while their spending continued to rise. Economists, meanwhile, have been calling on the central government to borrow more to aid the country’s economic recovery this year and lessen the debt burden on local authorities. In an attempt to assuage fears, the Economic Daily said in the article that China’s debt ratio is basically stable, and that financial risks are “generally under control.” That should create room for banks to further enhance support for the economy, it added. While the debt ratio has risen since the China likely to see slowdown in debt ratio as economy recovers pandemic began, its uptick was still markedly lower than in other major economies, according to the article, which said that means China used a relatively small amount of debt to drive the economy’s rebound. The increase in China’s debt-to-GDP ratio last year was mainly led by slowing economic growth, according to the NIFD report cited in the article. The ratio for the government sector rose faster than expected, while corporate debt expanded as bank loans to companies surged. However, the ratio for the household sector was unchanged due to the property slump and as income was hit by Covid outbreaks and controls, according to the NIFD. Chinese authorities embarked on a deleveraging campaign in 2016 to rein in the rapid build-up of debt in the economy as financial risks increased. After reaping some initial success, the government halted the effort in 2020 in order to stimulate the pandemic-stricken economy. The economy’s debt ratio surged by 24 percentage points in 2020 before it fell eight percentage points the next year, when economic growth rebounded, according to NIFD data. Bloomberg by Abhishek Vishnoi Bloomberg reuters

wednesday february 22, 2023 18 The E dge C E O m o rning brief world NEW YORK (Feb 21): Bond investors are starting to trim holdings of US debt to brace for a possible government default that they see as highly unlikely but potentially seismic for financial markets around the world. The US Treasury hit its US$31.4 trillion borrowing limit last month. Unless congress raises or suspends that cap, the government could begin to default on bonds that underpin the global financial system and are considered some of the safest investments. Some bond managers have started to adjust short-term exposure to Treasuries to avoid losses during the period when the government may exhaust its ability to pay its bills. Making preparations for a potential default is tricky, partly due to uncertainty over how much revenue the Treasury will collect from Americans filing income taxes in April. Goldman Sachs Group Inc’s asset management arm is minimizing its exposure to Treasuries that could be affected by the political standoff. “You have to be thinking about what instruments you own, what maturities,” said Ashish Shah, chief investment officer for public investing at Goldman Sachs Asset Management (GSAM), which oversees more than US$2 trillion. “Just because you own an instrument like a T-bill doesn’t mean that you sit there and let it mature — you may want to trade out of it.” Investors need to actively manage their positions during a prolonged turbulent period in which borrowing negotiations could Looming US default risk prompts investors to cut some debt exposure (Feb 21): Expensive US equities are flashing a major warning sign that could see the S&P 500 sliding as much as 26% in the first half of this year, according to Morgan Stanley strategists. Recent economic data suggested that the economy might be able to dodge a recession, but that has also taken the possibility of a US Federal Reserve (Fed) pivot off the table, according to a team led by Michael Wilson — ranked No 1 in last year’s Institutional Investor survey when he correctly predicted the sell-off in stocks. That’s left rates higher across the curve and stocks more expensive than at any time since 2007 by the measure Morgan Stanley’s Wilson says S&P 500 could drop 26% in months by Farah Elbahrawy Bloomberg by Davide Barbuscia & Saeed Azhar Reuters of equity risk premium, they added. Equity risk premium has entered a level known as the “death zone”, making risk-reward very poor especially, as the Fed is far from ending its monetary tightening and earnings expectations remain 10% to 20% too high, Wilson said. “It’s time to head back to the base camp before the next guide down in earnings,” he wrote in a note on Monday (Feb 20). The strategists hold a view that the S&P 500 can slide to as low as 3,000 — a 26% drop from its most recent close — in the first half of 2023. That’s “very much out of consensus at this point”, especially as active institutional and retail investors are more bullish than they have been in over a year, they said. disrupt markets, Shah said. The Federal Reserve’s path of interest-rate increases further complicates the situation, said Shah. Last month, US Treasury Secretary Janet Yellen said the government could only pay its bills through early June without increasing the limit, but some analysts have predicted that it will be the third or fourth quarter before the government exhausts its cash and borrowing capacity. The Congressional Budget Office warned it could occur between July and September. The Treasury bills yield curve indicates investors are demanding higher returns to hold debt due in August, signaling that it is perceived to be riskier than other maturities. Wider spreads between Treasury bill yields and matched-maturity overnight index swap (OIS) rates — a gauge for future policy rates — in mid-August reflect views that bills maturing then carry a higher risk of a missed payment, said Jonathan Cohn, the head of rates trading strategy at Credit Suisse in New York. “A kink [in the Treasury bill curve] has become evident through mid-August where the latest six-month bill issues mature,” he said. Read the full story Read also: Credit Suisse chairman’s comments draw scrutiny from financial US Treasury Secretary Janet Yellen watchdog, sources say reuters

wednesday february 22, 2023 19 The E dge C E O m o rning brief world (Feb 21): Hong Kong Financial Secretary Paul Chan faces a tough task this week as he unveils a budget that needs to provide incentives to revive the city’s international image while preventing the fiscal deficit from spiralling out of control. Economists largely expect Chan to focus his budget address on Wednesday on what the city will do to attract more foreign talent after years of strict pandemic curbs battered its status as the region’s premiere financial hub. Chief Executive John Lee made reversing an exodus of expats one of his top priorities during his maiden policy address last fall. Ten of 11 economists surveyed by Bloomberg this month said the government would roll out measures to bring in that talent. Seven of 10 respondents said they expected more incentives — including possible salary tax exemptions — to be announced to alleviate the financial burden faced by businesses and individuals. Only four of 11 respondents expect the government to give out more consumption vouchers, suggesting a shift away from a popular tactic intended to spur spending during the pandemic. “Hong Kong needs a very strong set of fiscal support measures to place its economy on a sustainable recovery path” this year, said Woei Chen Ho, an economist at United Overseas Bank Ltd. She cited immigration, the loss of appeal the city has among foreign companies and a property market downturn as obstacles for Hong Kong. The city has to refocus now that it’s reopened to China and the rest of the world, with other financial hubs in the region like Singapore trying to dethrone Hong Kong as the top Asian destination for business, talent and capital. Its path toward recovery is challenging, though, as the economy shrank in three of the past four years while the fiscal deficit ballooned. “After three years of the pandemic and a weak external economy, a high fiscal deficit has accumulated so the economic recovery still needs to be consolidated and investment in the future needs to be supported,” Chan wrote in a blog post on Sunday ahead of the budget speech. Here’s a look at some key areas economists expect Chan to focus on during his presentation on Wednesday morning at the Legislative Council: Attracting talent Several economists and other experts either expect or encourage the government to announce financial policies to pull in foreign, high-skilled workers. One way to do so would be to exempt employees at “strategic enterprises” from paying salary taxes, said Alice Leung, a tax partner at KPMG China. The city should extend an existing Continuing Education Fund to fully reimburse tuition and examination fees for professionals as a way to “ensure businesses have access to the talent they need for success”, the Association of International Certified Professional Accountants said in a release on Monday. Incentives could come on the corporate side, too. Consulting firm Deloitte floated a proposal to convince overseas firms to choose Hong Kong for a secondary listing by reducing the stamp duty rate for transferring Hong Kong stock. Chan announced a hike to that duty in his budget address in 2021, contributing to a market selloff. Officials have already rolled out other talent-focused programmes, including one plan to relax visa rules for high-earners and top university graduates. Most of the applicants so far are from mainland China, with half having recently completed their education, according to local media. Property taxes The government could also propose some measures targeting the real estate sector by Kari Lindberg & Cynthia Li Bloomberg Hong Kong’s budget dilemma is how to revive city and cut deficit to help bring in talent and give the ailing market a boost. Cutting property taxes for first time homebuyers may make the city more attractive to high-skilled workers, said Iris Pang, chief economist for Greater China at ING Groep NV. Such reductions would also increase the city’s supply of rental units and lower rent costs, she added. Hong Kong’s real estate market is one of the world’s most expensive, and housing has been a perennial issue for the city’s leaders. Rising interest rates have weighed on borrowing costs over the last year, which remain strained even amid a recent pullback. The government may find other ways to tackle the housing crisis. Authorities are expected to roll out around 11 residential sites involving over 19,000 units this fiscal year, the Hong Kong Economic Times reported. Fiscal pressures Chan made clear in his Sunday blog post that balancing the budget remains top of mind given the accumulating fiscal deficit. Deloitte estimated the city’s budget shortfall for the 2022-2023 fiscal year at HK$125.7 billion (US$16.1 billion). That would be deeper than Chan’s forecast last year of a more than HK$100 billion gap. Read also: Hong Kong’s crypto hub ambitions win quiet backing from Beijing Read the full story

wednesday february 22, 2023 20 The E dge C E O m o rning brief world JAKARTA (Feb 21): Indonesian President Joko Widodo will nominate central bank governor Perry Warjiyo for a second five-year term in the post, three sources familiar with the matter said on Tuesday, confirming that no other candidates would be put forward. Jokowi, as the president is popularly known, earlier said he would decide on Tuesday or Wednesday which candidates he would nominate to parliament to be Bank Indonesia (BI) governor after the current chief’s term ends in May. The sources, who have knowledge of the nomination process, declined to be identified because they were not authorised to speak on the matter. They said the president had only one candidate in mind. The presidential palace and the central bank did not immediately respond to requests for comment. Jokowi’s nominations are required by parliament before the end of this week so it can conduct a “fit-and-proper” test on them. By law, the president can submit at most three names and parliament must decide their pick or reject those candidates within a month. In the past few instances, including Indonesia president to nominate central bank chief Warjiyo for second term (Feb 21): Thai Prime Minister Prayuth Chan-Ocha said he will dissolve parliament in March, a move that paves the way for the next election. Prayuth told reporters he informed the cabinet in a meeting on Tuesday of his intention to dissolve the House of Representatives — the clearest sign he has given yet on the timeline for the vote, though he didn’t give a specific date. Prayuth’s move could be an attempt to buy time for his new party to campaign and recruit members to run for office. If he dissolves the house as late as March 22 — just one day before its term ends — the election can be held around May 21 at the latest. That could give him an extra two weeks given the election is now tentatively scheduled for May 7. When asked on Tuesday if the dissolution move would come in early March, Prayuth answered vaguely: “Something like that.” The former army chief is bidding to extend his eight-year rein in charge — first as a coup leader in 2014 and then as the head of an elected coalition since 2019. He’s the top candidate of a new conservative party after splitting with the military-backed ruling Palang Pracharath Party that helped him stay in power since the last vote. Prayuth is hoping a recovery in Southeast Asia’s second-largest economy, which is being powered by the return of millions of foreign tourists and billions of dollars in state stimulus, will boost his candidacy. He faces an uphill task addressing voter discontent stemming from the high cost of living and an uneven recovery in Thailand following the Covid pandemic. Thai PM to dissolve parliament, paving way for next election by Patpicha Tanakasempipat Bloomberg by Ananda Teresia & Stefanno Sulaiman Reuters when Jokowi nominated Warjiyo in 2018, only one name was submitted to lawmakers and rarely has an incumbent governor been nominated for a second term. Last month, sources told Reuters that Jokowi was considering nominating Warjiyo as well as looking at several others for the job. Those included his Finance Minister Sri Mulyani Indrawati, Deputy Central Bank Governor Destry Damayanti and the head of the Indonesia Deposit Insurance Corporation Purbaya Yudhi Sadewa. The sources on Tuesday said Jokowi did not want to change his finance minister before his term as president ends next year, due to her good performance. “It would be unfortunate to let go of Sri Mulyani,” said one of the sources, a parliamentarian. Another of the sources said they were 97% certain that Warjiyo was the president’s only pick, adding the nomination had yet to be submitted and “anything can happen” in politics. Read also: Gold miner Amman is considering US$1 bil Indonesian IPO Indonesian central bank governor Perry Warjiyo He’ll face tough competition for the top job. In recent opinion polls, Prayuth has significantly trailed opposition Pheu Thai Party’s Paetongtarn Shinawatra, daughter of former premier Thaksin Shinawatra, who was toppled in a coup in 2006. Parties affiliated with Thaksin have won the most seats in every Thai election over the last two decades. Pheu Thai also won the most seats in 2019, only to be thwarted by Palang Pracharath in forming a government, as election rules were heavily stacked in favour of the ruling generals. Earlier on Tuesday, the military-appointed Senate thwarted a key proposal by the lower house to hold a national referendum on rewriting the junta-era charter on the same day as the election, dealing another blow at attempts to curb the generals’ power. The Senate has delayed the vote on the referendum proposal since November, saying its members needed to study it more carefully. The bloc has generally prevented any moves to amend the constitution in ways that would curb its influence. If approved, the proposal would have paved the way for Thai citizens to vote on whether they wanted a completely new constitution to be written by an elected drafting committee. Several efforts by lawmakers and civil society organisations to amend the 2017 constitution have failed over the years. reuters

wednesday february 22, 2023 21 The E dge C E O m o rning brief world (Feb 21): The combined equity market value of Adani Group’s 10 companies slipped below US$100 billion on Tuesday (Feb 21), as the embattled conglomerate struggles to reassure investors following a scathing report by a US short seller. The ports-to-power group has now lost more than US$136 billion in market capitalisation since Jan 24, when US-based Hindenburg Research published a report alleging accounting fraud and stock manipulation — accusations that Adani Group has denied repeatedly. Billionaire Gautam Adani and his companies have hired legal and communication teams, cut expenses and repaid debt as they seek to calm traders concerned about the group’s access to financing. While the campaign brought the conglomerate’s dollar bonds back from distressed territory, the Adani selloff drags group’s market value to under US$100 bil (Feb 21): India is set to use this week’s meeting of finance ministers and central bank governors from the Group of 20 (G-20) nations to try to amplify its influence over developing economies in Asia, Africa and Latin America called the Global South. Without the cash to dole out billions in loans like China did under President Xi Jinping’s Belt-and-Road Initiative, India is seeking to use soft power by championing issues important to struggling nations such as debt relief. That’s one issue that may emerge as a key theme at the meetings in Bengaluru on Feb 24-25. While China is the obvious rival, India doesn’t want to be constrained by the US and its allies either and will stick up for its own interests on matters such as energy security. For Prime Minister Narendra Modi, this year’s hosting of the G-20 is an opportunity to leverage India’s growing strategic and economic heft. India’s geopolitical importance to the US and its allies has increased as American policymakers seek to thwart Beijing’s rise, with an increased focus on the Quad grouping that also includes Japan and Australia. Already the world’s most-populous nation according to some estimates, India is one of the fastest-expanding economies at a time of sluggish growth around the globe, luring companies like Apple Inc to expand. Even before kicking off key G-20 gatherings, New Delhi organised a virtual Global South Summit in mid-January, where Modi said: “As far as India is concerned, your voice is India’s voice. Your priorities are India’s priorities”. G-20 host India taps soft power as it champions new world order Nirmala Sitharaman, in an address to fellow finance ministers from across 14 economies as far-flung as Belize and Sierra Leone during that summit, said that as G-20 host, India seeks to “rebuild trust in multilateralism” and greater inclusion of struggling nations in discussions. Reforming multilateral institutions, assistance for low- and middle-income countries on debt vulnerability and climate initiatives are among India’s priorities, according to the nation’s chief economic adviser V Anantha Nageswaran. As poorer nations face debt distress, India is pushing that conversation into the mainstream. G-20 sherpa, Amitabh Kant, last week publicly pressured China to be more transparent on its loans to low-income countries and to take some losses. India’s self-nomination as the leader of the Global South is the culmination of messaging on the global stage that it will not simply play by the rules and norms of more powerful nations. The government crackdown on BBC that met no resounding reprimand from the US and allies shows Modi’s success at leveraging his nation’s rising importance. Read the full story by Michelle Jamrisko, Anup Roy, Ruchi Bhatia & Vrishti Beniwal Bloomberg by Abhishek Vishnoi Bloomberg continued equity selloff is an indication that more is needed. “Capex and debt remain major concerns,” said Sameer Kalra, founder of Target Investing in Mumbai. “These can further weigh on valuations.” The group tapped international bond buyers for more than US$8 billion in recent years, while also turning to global banks for at least as much in foreign-currency loans, data compiled by Bloomberg show. Rating agencies have also revised the outlook for some companies, including Adani Green Energy Ltd and Adani Ports & Special Economic Zone Ltd. Adani and his companies are now prioritising financial health over aggressive debtfuelled expansion spree of recent years. The group’s focus has shifted to cash conservation, debt repayment, and recovering pledged shares as it attempts to repair the damage caused by Hindenburg’s report. Group’s stocks were trading mixed on Tuesday, with flagship Adani Enterprises Ltd trading little changed as of 11.04am in Mumbai. Adani Green, Adani Transmission Ltd and Adani Total Gas Ltd were each down by 5% limit, while Adani Power Ltd rose by a similar magnitude and Adani Ports traded about 2% higher. bloomberg

wednesday february 22, 2023 22 The E dge C E O m o rning brief world (Feb 21): The largest-ever trial of the fourday work week found that most UK companies participating are not returning to the five-day standard, and a third are ready to make that change permanent. The study involved 61 organizations and about 2,900 workers who voluntarily adopted truncated work weeks from June to December 2022. Only three organizations decided to pause the experiment, and two are still considering shorter hours, data released Tuesday showed. The rest were convinced by revenue gains, drops in turnover and lower levels of worker burnout that four is the new five when it comes to work days. That thousands of employees adopted shorter schedules is notable given that the research occurred during trying economic circumstances that squeezed many British companies, including rapid inflation, political instability and fallout from Brexit. At times, launching a work-hour reduction program in the midst of an economic downturn seemed questionable. “I was wondering if it might be a lot harder for companies to make four-day weeks work, and the answer seems to be no,” says lead researcher Juliet Schor, an economist and sociologist at Boston College. Her research has long found that five-day work weeks no longer fits the lifestyles and commitments of modern employees, particularly caretakers. “The organizations did a great job, and they’re really happy with it.” The UK data strongly confirms the findings of smaller trials whose results were released in December, of companies based (Feb 21): HSBC Holdings plc will consider a special payout after the sale of its Canadian unit as the bank attempts to face down a campaign from its top shareholder to pursue a wider break-up of the business. Reporting results that beat analyst estimates, HSBC said it may pay a special US$0.21 dividend next year after the completion of the unit sale amid an ongoing tussle with Ping An Insurance Group Co of China. The bank announced the all-cash US$10 billion sale of HSBC Canada in November as it seeks to convince investors its plan to refocus on Asia is a better bet than Ping An’s call to consider spinning out its business in the region. “What we signalled today is our first and priority use of some of those buyback proceeds will be a US$0.21 special dividend,” chief executive officer Noel Quinn said in an interview with Bloomberg Television. “Thereafter as we close the transaction we’ll make a decision on how much additional distribution we do via buyback and how much we retain for internal use.” HSBC’s adjusted pretax profit rose 92% to US$6.83 billion in the fourth quarter, above the US$6.51 billion consensus estimate of analysts compiled by Bloomberg. The lender, like other global financial services firms, has benefited from rising interest rates. Its net interest margin — a key measure of profitability — rose to 1.74% in the quarter, up from 1.19% a year earlier. In a move that will prove especially popular to its large investor base in Hong Kong, HSBC said it would resume paying quarterly dividends from the first quarter this year. It said it has brought forward its consideration of buybacks to the first quarter of 2023 and will look other potential buybacks, in addition to any existing programme. HSBC previously said it would only resume buybacks once its core capital moved back within its target range of 14% to 14.5%. The lender retained its existing guidance of net interest income of at least US$36 billion for 2023. “There are some uncertainties on the horizon but we’re still positive,” Quinn said on BloombergTelevision. “We know where consensus is at the moment and we think consensus is in a reasonable position so we’re not looking to change guidance on NII.” “HSBC’s guidance of a 50% dividend payout (vs. consensus of 44% in 2023 and HSBC eyes special payout after profit jumps, bonus pool cut by Harry Wilson & Ambereen Choudhury Bloomberg 47% in 2024), a special dividend (US$0.21 a share in 2024 subject to completion of the Canada business sale) and likely share buyback, after it beat 2022’s pretax profit consensus by 20%, are small incremental positives for its investment story. Its net-interest income guidance of at least US$36 billion, which it reiterated, looks too conservative to us,” said Bloomberg Intelligence banking analyst Tomasz Noetzel. The bank’s shares fell 2.4% at 3.25pm in Hong Kong, having risen slightly in early afternoon trading. Cost pressures are one of the biggest issues facing the bank. Then chief financial officer Ewen Stevenson told a conference in September that rising inflation could force the lender to significantly increase salaries and that “brutal” cuts could be needed to keep a lid on costs. The lender’s costs rose 2% in the period due to technology spending and performance related pay. Overall for last year the bank’s variable pay pool shrank to US$3.36 billion from US$3.5 billion in 2021 as it paid less to investment bankers. HSBC is among banks who have been seeking to increase shareholders returns as rising interest rates propel profits, but its outlook has long been complicated by geopolitical tensions. Read the full story Read the full story in the US, Ireland and Australia. That research showed equivalent gains in revenue and employee productivity, as well as drops in absenteeism and turnover. Those pilots were smaller, covering roughly half the number of companies in the UK trial, and a third of the employees. “We basically got very similar results,” says Schor. “The differences were marginal—really nothing worth talking about.” The UK results are the second major data release in an ongoing series of 4-day tests coordinated by 4-Day Week Global, a New Zealand-based nonprofit advocacy group. With each iteration, the researchers adjust their data collection, as well as begin tracking the long-term effects of lighter schedules. Though the studies are well-designed and include organizations across a swath of industries, weak points include that the participating organizations skew smaller and that the trials are not randomized: the participating organizations all opt in and invest substantial efforts in trainings and planning— meaning that leaders are biased toward championing shorter work schedules. World’s largest four-day work week trial finds few are going back by Irina Anghel & Arianne Cohen Bloomberg

wednesday february 22, 2023 23 The E dge C E O m o rning brief world HONG KONG (Feb 21): For much of the past century, a strategy known as elimination was the gold standard for dealing with deadly new viruses. But China’s abrupt reversal of its Covid Zero policy, which took it to an extreme, has cast doubts over the approach and left a gaping hole in the world’s game plan for the next pandemic. Even outside China, elimination measures like stay-at-home orders proved politically unpopular and difficult to carry out. With some medical experts doubting whether airborne respiratory pathogens can be suppressed, global public health officials are now without a consensus on how best to contain new infectious diseases. Early in the pandemic, proponents argued elimination was morally, scientifically and economically superior to so-called mitigation approaches, such as slowing the spread of disease through physical distancing and limiting social gatherings, or letting the virus loose among the young while protecting more vulnerable members of the population. As cases spread throughout the world, the full weight of the policy emerged, demanding strict border controls, lockdowns and extensive testing and contact-tracing. But it also required fast action and global coordination, which was difficult to achieve. “In hindsight, people could have said let’s throw everything we can at this pandemic and try to stamp it out,” said epidemiologist Michael Baker, who was the architect of New Zealand’s early elimination Covid response. “I think we had a reasonable chance of doing it. But the opportunity is very early on in a pandemic. Once there’s global distribution, you’ve got a huge challenge.” China’s experience, marked by months-long lockdowns, isolation and family separations, showed simultaneously that elimination was possible and that it came at a cost too high for most countries, especially democratic ones, to bear. The first example was in Wuhan, where Covid pervaded the city in late 2019 and was wiped out less than five months later. Proof of concept “It was quite a revelation that China was able to stop transmission in 2020 in Wuhan,” said Baker, who recently became the director of the Public Health Communication Centre in New Zealand, a non-profit group designed to improve the way medical information and research is conveyed. “That was the proof of concept.” New Zealand, which had a little more of a heads-up, followed China’s example. It halted the march of Covid with an intense, two-month stay-at-home order, plus other measures like contact tracing and quarantines. A handful of other governments in Asia also pursued the policy, including in Hong Kong, Australia, Taiwan, and Singapore, with varying degrees of success. Vietnam, Laos and Mongolia, with long borders and limited resources, also used it. The initial benefits were clear. All were able to curb infections until pharmaceutical interventions like vaccines and antivirals were developed. During that time, health care providers learned how to best treat patients, such as giving them steroids and positioning them on their stomachs, which boosted survival rates. Per-capita death rates in Covid Zero countries came in far below those that opted for mitigation, also known as flattening the curve. Japan and South Korea, which didn’t pursue elimination but where social distancing and masking were followed closely, also fared well in suppressing deaths. by Michelle Fay Cortez Bloomberg World’s failure to wipe out Covid-19 bodes badly for next pandemic While President Xi Jinping touted China’s success at saving lives, the unrelenting restrictions long after vaccines became widely available triggered protests and dragged on the economy. Experts said the severity of China’s approach may have tainted the world’s perceptions of elimination measures which, when applied less harshly, have helped to contain deadly diseases like polio, measles and SARS. “It created a false alternative in which a draconian, individual rights-destroying lockdown was seen as one option, and the other was to do nothing,” said Amesh Adalja, a senior scholar at Johns Hopkins Center for Health Security. China imposed a tracking system that forced millions of people to routinely get laboratory-run PCR tests to do things like go to the office, eat in a restaurant or ride the subway. Simply being in the proximity of someone who later tested positive could lead to home confinement or being taken to a quarantine camp. In Shanghai, 25 million people were locked down for two months in 2022. In other cities, workers fled manufacturing plants that used closed-loop systems that kept them inside the factories. Residents scaled fences and shoppers rushed exits when rumours of infections cropped up, for fear of being forced into weeks of isolation. Protests, once unheard of, erupted. In the face of such discontent, China abruptly dropped its stringent elimination measures in December. Infection rates soared, with the government estimating 37 million people a day were getting infected at one point. China wasn’t alone in grappling with the costs of elimination. Thousands of Australians caught outside the country when Covid flared were denied re-entry for more than 18 months, while Melbourne endured six lockdowns over 262 days in a bid to keep the virus out. New Zealand’s “Go Hard, Go Early” approach was also criticised when tough lockdown steps led to rising unemployment and domestic violence. Both countries have since seen a change in leadership. Read the full story

WEDNESDAY FEBRUARY 22, 2023 24 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) MINDA GLOBAL BHD 157.30 0.010 0.085 21.43 142.70 SERBA DINAMIK HOLDINGS BHD 112.90 0.000 0.020 100.00 74.20 MY EG SERVICES BHD 98.30 -0.028 0.660 -23.42 4901.10 SMRT HOLDINGS BHD 88.1 0.060 0.295 103.45 131.30 ZEN TECH INTERNATIONAL BHD 87.90 0.005 0.040 100.00 32.30 TOP GLOVE CORP BHD 56.50 -0.020 0.820 -9.39 6566.00 ANZO HOLDINGS BHD 45.20 0.000 0.005 -66.67 5.60 DAGANG NEXCHANGE BHD 39.60 -0.035 0.625 22.55 1972.70 HO WAH GENTING BHD 39.3 0.010 0.145 26.09 96.10 CUSCAPI BHD 37.5 -0.005 0.245 8.89 231.50 BETAMEK BHD 31.20 0.005 0.615 19.42 276.80 DIALOG GROUP BHD 29.50 -0.130 2.450 0.00 13824.30 VELESTO ENERGY BHD 29.10 -0.005 0.230 53.33 1889.60 CSH ALLIANCE BHD 26.00 0.000 0.050 25.00 69.10 PROGRESSIVE IMPACT CORP BHD 25.9 0.005 0.320 23.08 209.70 NYLEX MALAYSIA BHD 25.20 -0.035 0.595 91.94 106.7 HUBLINE BHD 24.6 -0.005 0.040 0 171.6 TECHNA-X BHD 24.40 0.005 0.025 0 55.4 ATA IMS BHD 24.2 0.005 0.365 62.22 439 PUBLIC BANK BHD 22.9 -0.020 4.15 -3.94 80554.4 Data as compiled on Feb 21, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) SMRT HOLDINGS BHD 0.295 25.53 88,118.3 103.45 131.3 TECHNA-X BHD 0.025 25.00 24,351.0 0.00 55.4 GRAND CENTRAL ENTERPRISES BHD 0.400 25.00 135.7 14.29 78.8 OVERSEA ENTERPRISE BHD 0.120 20.00 603.3 26.32 136.2 ALDRICH RESOURCES BHD 0.035 16.67 536.2 16.67 39.0 WARISAN TC HOLDINGS BHD 1.200 16.50 5.6 18.81 78.1 SASBADI HOLDINGS BHD 0.145 16.00 18,066.0 20.83 61.6 PTT SYNERGY GROUP BHD 1.200 14.29 605.4 10.09 108.0 ZEN TECH INTERNATIONAL BHD 0.040 14.29 87,856.4 100.00 32.3 MINDA GLOBAL BHD 0.085 13.33 157,315.0 21.43 142.7 BINA PURI HOLDINGS BHD 0.045 12.50 13,460.5 12.50 93.5 IMPIANA HOTELS BHD 0.115 9.52 4,451.5 27.78 41.5 KEIN HING INTERNATIONAL BHD 2.800 8.95 2,412.7 32.08 304.9 TOWER REAL ESTATE INVESTMENT 0.490 8.89 16.0 7.69 137.4 CATCHA DIGITAL BHD 0.195 8.33 23 5.41 26.3 SHH RESOURCES HOLDINGS BHD 0.650 8.33 5.0 -1.52 65.0 CHINA OUHUA WINERY HOLDINGS 0.070 7.69 225.1 7.69 46.8 EURO HOLDINGS BHD 0.140 7.69 7,215.0 16.67 123.5 HO WAH GENTING BHD 0.145 7.41 39,279.1 26.09 96.1 SEALINK INTERNATIONAL BHD 0.150 7.140 22,369.3 50.00 75.0 Data as compiled on Feb 21, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) VSOLAR GROUP BHD 0.005 -50.00 5,347.0 -50.00 24.2 EA HOLDINGS BHD 0.010 -33.33 425.0 -33.33 64.5 EASTERN & ORIENTAL BHD 0.335 -21.18 2,777.4 -18.29 486.1 MLABS SYSTEMS BHD 0.020 -20.00 2,702.3 0.00 29.0 FOCUS DYNAMICS GROUP BHD 0.020 -20.00 12,580.3 0.00 127.4 SANICHI TECHNOLOGY BHD 0.020 -20.00 953.9 -20.00 28.1 SDS GROUP BHD 0.805 -16.58 18,895.1 8.78 329.8 IVORY PROPERTIES GROUP BHD 0.065 -13.33 122.0 -18.75 31.9 PDZ HOLDINGS BHD 0.035 -12.50 74.5 -12.50 20.3 NEXGRAM HOLDINGS BHD 0.040 -11.11 17,525.3 -42.86 17.7 HUBLINE BHD 0.040 -11.11 24,575.2 0.00 171.6 IQZAN HOLDING BHD 0.040 -11.11 417.3 14.29 9 SAUDEE GROUP BHD 0.040 -11.11 14,477.7 -11.11 45.6 DIGISTAR CORP BHD 0.080 -11.11 409.3 14.29 36.1 KANGER INTERNATIONAL BHD 0.040 -11.11 778.6 0.00 26.0 SAPURA ENERGY BHD 0.045 -10.00 11094.8 28.57 719.1 TWL HOLDINGS BHD 0.045 -10.00 15,016.1 28.57 179.2 XOX TECHNOLOGY BHD 0.045 -10.00 292.0 0.00 40.2 UNISEM M BHD 2.900 -9.38 6226.125 5.07 4677.9 MINETECH RESOURCES BHD 0.050 -9.09 1,469.8 -9.09 76.3 Data as compiled on Feb 21, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) MALAYSIAN PACIFIC INDUSTRIES 30.980 -2.760 1,507.20 7.72 6,161.8 HEINEKEN MALAYSIA BHD 28.320 -0.900 578.80 12.38 8,555.4 PANASONIC MANUFACTURING 25.220 -0.860 17.50 10.13 1,532.0 HEXTARTECHNOLOGIES SOLUTIONS 25.700 -0.800 29.20 50.64 3,306.3 CARLSBERG BREWERY MALAYSIA 24.200 -0.480 536.30 5.77 7,399.1 UNISEM M BHD 2.900 -0.300 6,226.10 5.07 4,677.9 PETRONAS GAS BHD 17.220 -0.280 366.50 0.58 34,073.8 VITROX CORP BHD 7.780 -0.270 135.60 1.70 7,349.7 SYARIKAT TAKAFUL MALAYSIA 3.410 -0.200 1,810.40 -0.87 2,855.2 HONG LEONG FINANCIAL GROUP 17.960 -0.180 572.00 -3.44 20,568.6 GENTING BHD 4.850 -0.180 16,488.60 8.26 18,675.3 PENTAMASTER CORP BHD 4.900 -0.170 4,221.90 10.61 3,485.5 D&O GREEN TECHNOLOGIES BHD 4.600 -0.170 1,685.00 7.48 5,693.2 SDS GROUP BHD 0.805 -0.160 18895.1 8.78 329.8 NEGRI SEMBILAN OIL PALMS BHD 3.450 -0.150 1.50 -1.43 242.2 DIALOG GROUP BHD 2.450 -0.130 29,529.60 0.00 13,824.3 FORMOSA PROSONIC INDUSTRIES 3.520 -0.120 571.8 8.98 902.3 FRONTKEN CORP BHD 3.110 -0.120 3,641.70 0.97 4890.2 HAP SENG CONSOLIDATED BHD 7.000 -0.110 96.00 9.37 17,427.7 MALAYAN CEMENT BHD 2.410 -0.090 150.00 13.68 3,157.6 Data as compiled on Feb 21, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) KEIN HING INTERNATIONAL BHD 2.800 0.230 2,412.7 32.08 304.9 AJINOMOTO MALAYSIA BHD 14.200 0.180 95.4 8.56 863.3 FRASER & NEAVE HOLDINGS BHD 26.420 0.180 216.2 22.43 9,690.3 WARISAN TC HOLDINGS BHD 1.200 0.170 5.6 18.81 78.1 PTT SYNERGY GROUP BHD 1.200 0.150 605.4 10.09 108.0 UMS HOLDINGS BHD 2.150 0.130 0.1 7.50 87.5 ALLIANZ MALAYSIA BHD 13.720 0.120 15.5 -3.11 2,441.7 UNITED PLANTATIONS BHD 15.720 0.120 61.0 2.75 6,497.1 PETRONAS DAGANGAN BHD 22.280 0.120 69.0 -3.13 22,134.2 PARAGON UNION BHD 2.630 0.110 421.2 41.40 220.5 KOTRA INDUSTRIES BHD 6.450 0.100 60.3 -2.27 954.6 DUTCH LADY MILK INDUSTRIES 29.800 0.100 3.5 -1.46 1,907.2 NESTLE MALAYSIA BHD 135.600 0.100 82.6 -3.14 31,798.2 TA ANN HOLDINGS BHD 3.590 0.090 784.8 -5.03 1,581.3 PETRONAS CHEMICALS GROUP BHD 8.280 0.080 2,910.9 -3.72 66,240.0 SAM ENGINEERING & EQUIPMENT 5.100 0.080 606.5 3.45 2762.1 GRAND CENTRAL ENTERPRISES BHD 0.400 0.080 135.7 14.29 78.8 CHIN HIN GROUP BHD 4.290 0.070 2221.8 32.82 7590.8 IHH HEALTHCARE BHD 5.980 0.070 1,007.1 -3.86 52,660.1 SARAWAK OIL PALMS BHD 2.700 0.070 349.00 3.85 2,403.4 Data as compiled on Feb 21, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DOW JONES 33,826.69 129.84 0.39 S&P 500 4,079.09 -11.32 -0.28 NASDAQ 100 12,358.18 -84.30 -0.68 FTSE 100 7,989.80 -24.51 -0.31 AUSTRALIA 7,336.30 -15.22 -0.21 CHINA 3,306.52 16.19 0.49 HONG KONG 20,529.49 -357.47 -1.71 INDIA 60,672.72 -18.82 -0.03 INDONESIA 6,873.41 -21.31 -0.31 JAPAN 27,473.10 -58.84 -0.21 KOREA 2,458.96 3.84 0.16 PHILIPPINES 6,800.96 56.84 0.84 SINGAPORE 3,306.86 -1.89 -0.06 TAIWAN 15,563.00 11.77 0.08 THAILAND 1,668.63 10.94 0.66 VIETNAM 1,082.23 -4.46 -0.41 Data as compiled on Feb 21, 2023 Source: Bloomberg CPO RM 4,141.00-26.00 OIL US$ 84.090.02 RM/USD 4.4328 RM/SGD 3.3138 RM/AUD 3.0544 RM/GBP 5.3592 RM/EUR 4.7269