The Edge 01.03.23

CEOMorningBrief WEDNESDAY, MARCH 1, 2023 ISSUE 530/2023 www. theedgemarke ts. com APPLE SUPPLIERS ARE RACING TO EXIT CHINA, AIRPODS MAKER SAYS p15 HOME: Yinson inks 15-year contract worth US$5.3 bil to supply FPSO in Angola p4 CIMB’s FY2022 bottomline jumps 27% on loan growth p6 Hefty gain on rig sale lifts Icon Offshore 4Q net profit sharply higher p8 WORLD: European high yield debt looks increasingly vulnerable, Deutsche Bank says p16 India economy expands slower than forecast on waning demand p17 Report on Page 3. Boustead swings into losses, CEO expresses concern on Pharmaniaga’s impairment Govt could save RM15-17 bil a year by removing fuel subsidies from T20, says Ahmad Maslan Report on Page 2.

wednesday M A rch 1, 2023 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Govt could save RM15-17 bil a year by removing fuel subsidies from T20, says Ahmad Maslan Malaysia’s budget deficit to narrow in 2023, says Fitch Solutions KUALA LUMPUR (Feb 28): The government is expected to save between RM15 billion and RM17 billion annually if subsidies are not enjoyed by the high-income earners (T20 group) under a targeted subsidy mechanism, according to Deputy Minister of Finance I Datuk Seri Ahmad Maslan. Last year, the government’s subsidy for petrol, diesel and liquefied petroleum gas amounted to RM50.8 billion, of which 35% was enjoyed by the T20 group, while 41% was enjoyed by the M40 group and 24% by the B40 group, says the Pontian MP. “If we multiply it [35% of RM50.8 billion], it would translate to RM17.8 billion of savings if the T20 did not enjoy the subsidy. We could save between RM15 billion and RM17 billion [annually]. That is the message I want to convey,” he told reporters at Parliament on Tuesday (Feb 28). “Sometimes, these RM15-17 billion, for the T20 group, they may not even notice such a significant amount of subsidies given to them. They are capable of buying at a higher price as compared to the B40 group,” he added. KUALA LUMPUR (Feb 28): Fitch Solutions Country Risk and Industry Research has lowered its forecast of Malaysia’s 2023 budget deficit as a share of GDP to 4.9%, from 5.3% previously, which is somewhat aligned with the government’s fiscal projections. In a report on Monday (Feb 27), the firm said it now expects revenue to come in much higher than before in 2023, after revenue collection surged by 25.9% in 2022. Fitch Solutions said the budget is expansionary overall, with the government announcing a slew of measures to lower the cost of living amid high inflation, as well as more progressive taxes. “Broadly speaking, we have aligned our revenue and expenditure forecasts with the government’s projections for now,” it said. home by surin murugiah theedgemarkets.com Ahmad [Umno-Pontian] said the government’s subsidy bill will go up to RM66.3 billion if subsidies for cooking oil, electricity, chicken, eggs and other consumer goods are taken into account. Fitch Solutions said on the revenue front, the government expects a decline of about 1.0% to RM291.5 billion in 2023, as opposed to a revised estimate of RM294.4 billion in 2022. “This is partly due to a 2.0 percentage point (pp) reduction of the individual income tax rate for M40 residents, who earn between RM35,000 and RM100,000 annually. “To partially offset this, income taxes among higher income individuals will be raised by between 0.5(pp)-2.0pp, while the government will also introduce a luxury goods tax from this year,” it said. The firm said that on the expenditure side, the government projects a marginal 1.2% decline in operating expenditure to RM289.1 billion in 2023, but net development expenditure is set to increase about 37% to RM96.3 billion, as compared to RM70.2 billion in 2022. “Overall, however, total expenditure (net of loan recoveries) is projected to decline from a revised estimate of RM393.8 billion to RM385.4 billion, mainly due to savings from the abolishment of the Covid-19 fund,” it said. by chester tay theedgemarkets.com “These do not include cash handouts for education, transport, agriculture, these other handouts are not included. If we include those, it will go up to RM91.4 billion,” he said. Ahmad said the Cabinet is still studying the appropriate mechanism to implement targeted fuel subsidy, and the recent rationalisation of electricity subsidy is a first step by the government. “The reason why we implement targeted subsidies for electricity is because 10% of the richest electricity consumers take up 56.4% of the electricity subsidy. For example [customers under] Domestic C [category] who use over 600 kWh, together with non-SME (small and medium enterprise) companies, big companies, they use 56.4% of the subsidies for electricity, they are only 10%. “I think Malaysia is the only country that gives more subsidies to the rich than to the poor,” he said. Zahid Izzani/The Edge Deputy Minister of Finance I Datuk Seri Ahmad Maslan

wednesday M A rch 1, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 28): Boustead Holdings Bhd’s 52%-owned subsidiary Pharmaniaga Bhd, once its major income contributor, has dragged the conglomerate into a quarterly net loss of RM402.3 million in the fourth quarter ended Dec 31, 2022 (4QFY2022). The whopping net loss was due mainly to the RM552.3 million impairment provision for Pharmaniaga’s unsold Covid-19 vaccine sitting in the warehouse. Consequently, Boustead incurred a loss per share of 19.85 sen, in contrast to earnings per share of 3.88 sen, or RM78.6 million, in 4QFY2021. This was despite a 25% growth in quarterly revenue to RM3.69 billion from RM2.96 billion, Boustead’s Bursa Malaysia filing showed. Group chief executive officer Izaddeen Daud, who took over the post in December last year, said the writedown was “indeed deeply concerning”. “Nevertheless, we are confident that Pharmaniaga remains a going concern and is well poised to tap on the strong prospects of the pharmaceutical sector, domestically and regionally. “We are supporting the management team to ensure a robust regularisation plan is in place to strengthen the company’s balance sheet and progressively work towards the upliftment of the PN17 (Practice Note 17) status,” he added. Analysts commented that there is likelihood that Pharmaniaga will need a cash call to recapitalise and regularise its financial conditions. Being the controlling shareholder, Boustead will need to have financial resources on standby in order to uplift the generic drug maker out of PN17 status. “This could entail a rights issue, private placement, special issue, or privatisation by key shareholders LTAT (Armed Forces Fund Board) and/or Boustead (which is also 59.4%-owned by LTAT),” said CGSCIMB analyst Sherman Lam Hsien Jin in his research note on Pharmaniaga. Lam noted that Pharmaniaga also disclosed that it breached certain financial covenants for its term loan and revolving credit facilities, with a total carrying value of RM94 million, which were thus classified as current liabilities. “While it is in negotiations with creditors on the matter, we believe there is risk of the company defaulting on these debt instruments (unless major shareholders Boustead and/or LTAT intervene), aside from potentially breaching covenants of by chester tay theedgemarkets.com Boustead swings into losses, CEO expresses concern on Pharmaniaga’s impairment other debt instruments in the coming months, especially after the release of its audited financial statements (likely in April 2023),” the analyst commented. This may explain why Boustead’s chieftain Izaddeen, an accountant by training, voiced his deep concern. Apart from Pharmaniaga, Boustead also owns a 64.99% stake in Boustead Heavy Industrial Corp Bhd, 57.42% in Boustead Plantation Bhd and 20.93% stake in Affin Bank Bhd. It also holds a 68.85% stake in Boustead Naval Shipyard Sdn Bhd — the company that has been tasked to build six littoral combat ships but it has yet to deliver. Boustead’s cash balances rose to RM764.3 million as at end-2022, from RM463.5 million as at end-2021. Short-term borrowings climbed to RM4.04 billion, from RM3.93 billion at end-2021, while long-term borrowings fell to RM2.75 billion from RM3.06 billion. For the full financial year ended Dec 31, 2022 (FY2022), Boustead’s net profit shed 64% to RM62 million, from RM170.1 million in FY2021. Earnings per share shrank to 3.06 sen from 8.39 sen. Annual revenue, however, expanded 34% to RM15.11 billion from RM11.31 billion. Going forward, Boustead said Pharmaniaga will continue its effort to negotiate with various parties including overseas markets for the sale of the remaining Covid-19 vaccine inventories. “Despite the challenges to our pharmaceutical division, we are encouraged by the fact that most of our other divisions recorded positive results for the financial year under review. “This was driven by our dedicated focus [on] our reinventing Boustead strategy, and we will continue to build on this to leverage opportunities to drive the sustainable growth of our core businesses, alongside unlocking value creation for the future,” said Izaddeen in a statement. Boustead’s share price already felt the heat, it fell as much as 12% on Tuesday (Feb 28) following Pharmaniaga’s financial results announcement. It closed at 62.5 sen, down 5.5 sen or 8.1% from Monday. At this price, the group’s market capitalisation stands at RM1.27 billion. Boustead’s quarterly earnings/loss Source: Bursa Malaysia -600 -300 0 300 Net prot/loss (RM mil) 43.10 -7.30 55.70 78.60 290.30 74.40 99.60 -402.30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 Boustead Holdings Bhd 0 5 10 15 20 25 Feb 7, 2022 Feb 28, 2023 30 50 70 90 Vol (mil) Sen Source: Bloomberg 62.5 sen 54 sen Boustead’s quarterly short-term borrowings Source: Bursa Malaysia 0 1 2 3 4 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2021 FY2022 4.55 4.64 4.00 3.94 3.75 3.95 3.82 4.04 Short-term borrowings (RM bil) Read also: Pharmaniaga tumbles after posting biggest quarterly loss

wednesday M A rch 1, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 28): Telekom Malaysia Bhd (TM)’s net profit doubled to RM160.18 million in the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM79.94 million a year ago, thanks to a foreign exchange (forex) gain on borrowings and lower finance costs. Earnings per share rose to 4.2 sen from 2.12 sen previously, the group’s Bursa Malaysia filing showed. The forex gain on borrowings surged to RM66.6 million from RM600,000 in 4QFY2021, while finance costs fell 19.19% to RM99.3 million from RM124 million. Nonetheless, TM said it recorded a 24.3% decrease in operating profits before finance cost of RM223.2 million, from RM294.8 million recorded in 4QFY2021, as it included depreciation, impairment and amortization which impacted the group’s revision of useful life of certain network and last mile elements including fibre optic cables. Quarterly revenue dropped 5.54% to RM2.98 billion, from RM3.15 billion previously, mainly due to lower contributions from other telecommunication related services, voice and data, but this was cushioned by revenue growth in internet and non-telecommunication related services. Given the strong quarterly earnings, the group declared a final dividend of 7.5 sen per share, payable on March 31. This brings the group’s total dividend in FY2022 to 16.5 sen per share, 27% higher than the 13 sen paid in FY2021. For the full-year, TM’s net profit rose 27.71% to RM1.14 billion, from RM895.21 million in FY2021, helped by higher operating profits and lower financing costs, despite a higher effective tax rate due to the one-off prosperity tax. Full-year revenue increased 5.11% to RM12.12 billion from RM11.53 billion, lifted by the increased revenue recorded from internet and multimedia, data, non-telecommunication services as well as voice services. Going forward, TM chief executive officer Imri Mokhtar pointed to industry headwinds in terms of regulatory policy and higher technology costs. “We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era,” Imri said in a statement. TM’s share price closed up 11 sen or 2.24% at RM5.03 on Tuesday (Feb 28), giving the group a market capitalisation of RM19.23 billion. Read also: PPB Group FY2022 net profit climbs to RM2.2 bil Litrak net profit soars to RM1.37 bil in 3Q Revenue Group slips into the red in 2Q on lower revenue, higher administrative expenses TM’s net profit doubles in 4Q, helped by forex gain on borrowings and lower finance costs KUALA LUMPUR (Feb 28): Yinson Holdings Bhd has inked a firm contract with Eni Angola SpA, a wholly owned subsidiary of Azule Energy, to supply a floating, production, storage and offloading asset for the Agogo Integrated West Hub Development Project in Angola (FPSO Agogo). In a statement on Tuesday (Feb 28), the company said its unit Yinson Production (YP) had signed the deal with Azule, which is Angola’s largest independent oil and gas producer as well as a 50:50 joint venture between BP plc and Eni SpA. Yinson said the contract has an estimated aggregate value of approximately US$5.3 billion and a firm period of 15 years from the date of the final acceptance, with the option to extend for a further five years. It said FPSO Agogo is expected to commence operations in the fourth quarter of 2025. The signing of the firm contract follows the signing of an agreement for preliminary activities on Dec 2, 2022 between the parties. FPSO Agogo will be YP’s first offshore production project in Angola and marks YP’s eighth FPSO project in the West African region. It will increase YP’s total order book to approximately US$22.4 billion. Yinson group chief executive Lim Chern Yuan said the contract award is a testament of YP’s standing as a reliable FPSO contractor. Yinson inks 15-year contract worth US$5.3 bil to supply FPSO in Angola “Our long-standing relationship with Eni, one of the JV partners in Azule alongside BP, started with the contract award for FPSO John Agyekum Kufuor back in 2017, which we delivered three months ahead of schedule. “We have also maintained an excellent safety and uptime track record which paved the way for our involvement in the FPSO Agogo project. Together with our client, we hope to further contribute to the production of energy in this region,” he said. Meanwhile, YP chief executive officer Flemming Grønnegaard said the company had been operating in the African region since 1995, and it was a vital market. “We are committed to delivering value-added results for our client, whilst implementing a low emission design that helps to mitigate climate change. “Together, we hope to pioneer some sustainable technologies such as carbon capture that we believe can pave the way for the decarbonisation of the FPSO industry,” he said. by Surin Murugiah theedgemarkets.com by Justin Lim theedgemarkets.com

wednesday M A rch 1, 2023 5 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 28): Analysts believe Tenaga Nasional Bhd’s (TNB) receivables should have marked a peak, as coal price have trended down, and see improving cash flow putting the utility giant on a better earnings path. TNB’s receivables in the fourth financial quarter ended Dec 31, 2022 (4QFY2022) ballooned to RM22.83 billion, up 2.36% from RM22.3 billion as at 3QFY2022. In the last two months, TNB’s share price has fallen 2.03% to RM9.46. The stock was at its highest at RM9.95 a share on Feb 15. At the noon break on Tuesday (Feb 28), TNB shares settled at RM9.46, representing a 14.3% potential upside to analysts’ average target price (TP) of RM10.81. Hong Leong Investment Bank (HLIB) in a note on Tuesday maintained its “buy” call on TNB, with a TP of RM11.65, and said the receivables increased due to timing mismatch of imbalance cost pass-through (ICPT) recognition and recovery. The research outfit expects receivables to drop in the coming quarters, following the higher approved ICPT amount of RM16.2 billion for the first half of 2023 (1H2023) and the downtrend of global coal prices in recent months. “The government has already paid RM4 billion in January, out of RM10.4 billion in subsidies. The remaining portion will be paid in five equal instalments. The management is also guiding for ICPT of RM12 billion for 2H2023, based on current fuel price trends,” HLIB said. PublicInvest Research, meanwhile, maintained its “outperform” call on TNB, with a TP of RM12.42, stating that TNB remains confident that the ICPT matter will be resolved. “Timing mismatch between the upfront payment made by TNB and recovery of the surcharges has resulted in an expansion in its receivables and borrowings. “Nevertheless, the group remains confident that the situation will be resolved in 1H2023, with the remaining ICPT receivables (RM16.9 billion or 76.8% of receivables) to be paid in five equal instalments,” said PublicInvest. Additionally, it added, moderating fuel and coal prices based on recent trends suggesting an easing in TNB’s working capital requirements in FY2023. Read the full story Analysts see TNB’s receivables at peak, recommend ‘buy’ on improving cash flow KUALA LUMPUR (Feb 28): After receiving a sum of RM4 billion for the imbalance cost pass-through (ICPT) mechanism last month, Tenaga Nasional Bhd (TNB) said the remaining amount will be paid by the government in five equal instalments. Given the high fuel cost in 2022, TNB president and chief executive officer Datuk Baharin Din said the group’s ICPT receivables remained relatively high due to the timing mismatch between the upfront payment made by TNB and recovery of the surcharges via the ICPT framework. This came after TNB reported higher receivables of RM22.83 billion in the fourth quarter ended Dec 31, 2022 (4QFY2022), more than double the RM10.55 billion amount a year ago. On a quarter-on-quarter basis, receivables increased 2.36% from RM22.3 billion in 3QFY2022. However, the pressure on ICPT receivables is expected to ease given the current fuel price trends and the government upholding the Incentive Based Regulation framework, said Baharin. “From July to December 2022, TNB has obtained a full ICPT recovery of RM5.8 billion. “[And] in the first half of FY2023, the total ICPT cost recovery stood at RM16.2 TNB to collect remaining ICPT payment from govt in five equal instalments, says CEO billion,” said Baharin in a statement on Tuesday (Feb 28). “The government’s decision on the recent ICPT showed their commitment in ensuring that the industry remains resilient,” he added. According to him, the utility giant will fully recover the net imbalance cost through the ICPT surcharge that will be passed through the non-domestic customers (medium and high voltage) at 20 sen/ kWH, as well as RM10.4 billion of cost recovery from the government. Based on the current fuel price trends, Baharin stated that the ICPT to be recovered for the second half of FY2023 is forecasted to be around RM12 billion. by Syafiqah Salim theedgemarkets.com by Priyatharisiny Vasu theedgemarkets.com TNB president and chief executive officer Datuk Baharin Din TNB’s receivables trend Source: Bursa Malaysia 0 5 10 15 20 25 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (RM bil) FY2021 FY2022 6.29 6.27 4.97 10.55 14.07 19.17 22.30 22.83

wednesday M A rch 1, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 28): Hong Leong Financial Group Bhd’s (HLFG) net profit improved by 37.78% to RM770.84 million for the second quarter ended Dec 31, 2022 (2QFY2023), from RM559.49 million a year earlier, due to higher contributions from its commercial bank, coupled with lower income tax. HLFG announced an interim single-tier dividend of 17 sen per share, payable on March 30, 2023, with an ex-date of March 14. Hong Leong Bank Bhd (HLB) — 61.82% owned by HLFG — recorded a higher net profit of RM1.04 billion, up 40.5% from RM738.59 million a year earlier. HLB also announced an interim single-tier dividend of 21 sen per share to be paid on March 28, 2023, with an ex-date of March 14. The improved net profit was due to higher net income of RM115.1 million, lower allowances for impairment losses on loans, advances and financing of RM7.9 million, and higher share of profit from associated companies of RM121.9 million. Meanwhile, Hong Leong Capital Bhd (HLC) — 70% owned by HLFG — saw its net profit decline 18.40% to RM12.60 million, from RM15.44 million a year earlier, due to lower contributions from investment banking and stockbroking as well as its fund management and unit trust management divisions. Read the full story HLFG’s 2Q earnings improve due to higher contributions from commercial bank KUALA LUMPUR (Feb 28): CIMB Group Holdings Bhd’s net profit jumped 26.6% to RM5.44 billion for the year ended Dec 31, 2022 (FY2022) versus RM4.29 billion posted a year ago, on the back of stronger operating income from robust loan growth and net interest margin (NIM) expansion. The stronger net profit was also attributed to stringent cost management, lower provisions from prudent risk management, recoveries and portfolio de-risking. Revenue grew 1.6% to RM19.84 billion from RM19.51 billion reported in FY2021, according to the group’s bourse filing. For the fourth quarter, CIMB reported a 55% increase in net profit to RM1.32 billion versus RM854.51 million in 4QFY2021, on the back of strong operating income growth and significantly lower provisions. Quarterly revenue grew 13.8% to RM5.21 billion from RM4.58 billion in 4QFY2021. CIMB said its core operating income for FY2022 rose 8% to RM19.84 billion with net interest income (NII) growing by 8.6%, driven by strong loan growth and improved NIM. Core non-interest income (NOII) for the year also strengthened, growing by 6% to RM4.68 billion from stronger fee income and higher asset recoveries. CIMB’s total gross loan growth momentum continued, rising 7.7% from FY2021, driven by stronger demand across key markets and segments, while total deposits grew by 4.6%. However, total current account and savings account (CASA) contracted slightly by 1.8% from expected attrition in line with post-pandemic economic activity growth, leading to a CASA ratio of 39.9% as at December 2022. CIMB proposed an all-cash second interim dividend of 13 sen per share, bringing the total dividend for FY2022 to 26 sen for a payout ratio of 50.5% based on the reported net profit. CIMB group chief executive officer Datuk Abdul Rahman Ahmad said the FY2022 performance exceeded targets across all profitability metrics, including return on equity (ROE) and CIR. “The group continues to be well capitalised as its Common Equity Tier 1 (CET1) ratio remained strong at 14.5% as at Dec 22, exceeding our target. “The strong performance is a testament to the progress made under its mid-term Forward23+ strategic plan, where the group has been reshaping its portfolio and making focused investments into profitable areas,” Abdul Rahman said at a media briefing on Tuesday (Feb 28). Read the full story CIMB’s FY2022 bottomline jumps 27% on loan growth Alliance 3QFY2023 profit jumps 17% on higher net interest income by Priyatharisiny Vasu theedgemarkets.com by Priyatharisiny Vasu theedgemarkets.com by Sufi Muhamad theedgemarkets.com KUALA LUMPUR (Feb 28): Alliance Bank Bhd’s net profit in the third quarter ended Dec 31, 2022 (3QFY2023) increased 17.2% to RM177.10 million from RM151.02 million a year earlier, driven by higher net interest income. Revenue increased 3.40% to RM496.54 million, from RM480.18 million a year ago. For the first nine months (9MFY2023), net profit increased 16.6% to RM547.7 million from RM469.77 million a year earlier, while revenue rose 2.5% to RM1.45 billion from RM 1.41 billion, driven by net interest income improvement. In the cumulative nine months, net interest margin improved 15 basis points to 2.68% since March 2022. At the same time, client-based fee income (excluding brokerage) grew 2.5% year-on-year (y-o-y) to RM211.9 million, driven by higher wealth management, foreign exchange sales and trade fees. The bank’s cost-to-income ratio amounted to 44.1%. “Alliance Bank has shown resilient growth particularly in the SME (small and medium-sized enterprises) business, where(in) our market share has grown from 3.4% to 5% within four years. Our formula for success in the SME segment will now be brought into other attractive segments, sectors, and ecosystems,” said Alliance Bank group chief executive officer Kellee Kam in a statement. Read the full story

WEDNESDAY MARCH 1, 2023 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 28): A successful appeal by Malaysia in France against the claims of the self-proclaimed Sulu heirs would support the government’s global strategy to stave off the US$14.92 billion dispute. The Paris tribunal in September 2021 issued an order to allow the execution of the preliminary award favouring the Sulu claimants. Malaysia is appealing against the order, and a decision by the French court on this appeal could be made this June. The final award of US$14.92 billion was issued by Spanish arbitrator Gonzalo Stampa on Feb 28, 2022 in the French arbitration court, after the arbitration process was moved from Spain where Stampa’s appointment was annulled. The Sulu claimants subsequently sought to execute the final award in other countries including Luxembourg and the Netherlands to seize assets linked to the Malaysian government as part of the claims — what the Malaysian government has disputed as forum shopping. Speaking at a briefing with Members of Parliament on the Sulu dispute here, Malaysia’s Solicitor General II Datuk Siti Zainab Omar said it has been a challenge for Malaysia to formulate a global strategy as each country has its own jurisdiction. “We did explore going to one court and having one declaration [to annul the final award]... but if you have a declaration in the UK [for example], it does not apply to other jurisdictions. “Especially because the final award was declared in France, we are challenging [it there]. Once [the French courts] decide that the final award is not proper, we can go to other countries and [question] the enforcement of a judgment which is not recognised where it was issued,” Siti Zainab said. “We do have a battle, because [the claimants and its legal representatives] have other arguments as well,” she said. “But we are quite hopeful we have grounds to challenge.” The case — said to be the second largest in international arbitration history — is one that is “unusual”, and “non arbitrable”, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. “The Award has breached the princiBY ADAM AZIZ theedgemarkets.com More clarity on Malaysia’s dispute over Sulu ‘heirs’ US$15 bil claim by June ple of international public policy involving Malaysia’s diplomatic immunity and jurisdictional immunity, as well as sovereignty,” she said in a statement. In a response following the MPs’ briefing, the claimants’ co-counsel Elisabeth Mason told The Edge: “This is the anniversary of the Final Award issued in Paris. Annual interest at 10% is set into the Award. “Shouting about sovereignty and shadow boxing the wrong opponents for the last 12 months has cost the Government of Malaysia one and a half billion dollars. And it has got them nowhere,” Mason said. Claimant linked to convicted Sulu insurgent The eight claimants had initiated the legal action on grounds that Malaysia had breached a 145-year-old contract with the Sultan of Sulu or his descendants after the government halted its annual payment of RM5,300 in exchange for perpetual sovereign rights over what is part of Sabah today. The payment was stopped following the Lahad Datu armed incursion in 2013, said to be linked to the Sulu Sultanate. At the briefing, Azalina pointed out that one of the eight claimants is believed to have family ties to one of the Lahad Datu insurgents currently on death row. “The important element is the eight claimants plus the commercial jurisdiction.... If they are really related, why are there only eight of them [making the claim]? “G2G-wise (government-to-government), the Philippines government is not involved in [the dispute]. This is considered a private matter [in the court’s view]. But you have eight claimants going for commercial arbitration… are they representing [all] Sulu [Sultan] descendants? I’m not sure. That’s why the locus itself should be questioned,” she said. ‘We are investigating’ if offer to pay claimants had Cabinet approval — Azalina Azalina told reporters on Tuesday that the government is investigating whether the Cabinet gave the nod to Tan Sri Tommy Thomas to issue a letter to the purported Sulu “heirs” in 2019. The letter, issued by Thomas when he was attorney general, expressed the government’s willingness to resume repayment and outstanding arrears in relation to the Sabah land lease contract in 1878 involving the Sulu Sultanate. The payment was halted following the Lahad Datu armed incursion in 2013; that, and the letter formed the basis for what the claimants said was a breach of contract by the Malaysian government in their US$14.92 billion claim in the French arbitration court. Tommy Thomas, when contacted, declined to comment. Read the excerpt of the Q&A with Azalina at a short press conference after a briefing with MPs on the Sulu dispute

WEDNESDAY MARCH 1, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 28): IOI Corp Bhd’s net profit rose 43.95% to RM712.1 million for the second quarter ended Dec 31, 2022 (2QFY2023), from RM494.7 million a year earlier, boosted by higher earnings contribution from its resource-based manufacturing segment. Earnings per share rose to 11.47 sen from 7.95 sen. The resource-based manufacturing segment’s profit more than trebled to RM464.3 million from RM152.8 million in 2QFY2022, thanks mainly to a higher contribution from the refining sub-segment with improvement in margins, said the group in a Bursa Malaysia filing. IOI Corp also recognised a higher foreign currency translation gain on borrowings of RM122.4 million from RM29 million previously. The group declared a first interim dividend of six sen per share, payable on March 24. Quarterly revenue, however, declined 19.66% to RM3.3 billion, from RM4.11 IOI Corp 2Q profit up 44% KUALA LUMPUR (Feb 28): Icon Offshore Bhd posted record fourth quarter and full-year net profits for the year ended Dec 31, 2022 (FY2022) after a hefty net gain of RM196.3 million from the disposal of its sole jack-up rig. The oil and gas service provider’s net profit for 4QFY2022 was up by 32 times to RM153.6 million from RM4.8 million a year earlier. Earnings per share (EPS) rose to 5.68 sen from 0.18 sen. For FY2022 as a whole, net profit rose by more than seven times to RM171.56 million from RM22.7 million in the previous year. Full-year EPS grew to 6.34 sen from 0.84 sen in FY2021, according to the group’s bourse filing. Icon paid a special dividend of 6.7 sen per share on Dec 28, 2022 following the completion of the jack-up rig disposal to Saudi Arabia-based ADES Arabia Holding. This is the first-ever dividend the group has paid since its listing in June 2014. “Proceeds from disposal were utilised to pare down debt and undertake a special dividend payout,” Icon said in a statement. Icon’s revenue slumped 28.67% to RM57.5 million in 4QFY2022, from RM80.6 million a year ealier, due to lower revenue from its offshore supply vessels (OSV) segment and drilling segment, as a result of lower utilisation. Full-year revenue decreased 6% to RM282.6 million, from RM300.6 million in FY2021. Icon said its balance sheet remained robust as at Dec 31, 2022, sporting a cash position of RM148.5 million while borrowings stood at RM286.4 million against shareholders’ funds of RM405.7 million. The group said that despite the rundown of several long-term contracts in FY2022, the current order book for the OSV segment stands at RM621.2 million. Icon’s managing director Datuk Seri Hadian Hashim said the OSV segment is likely to benefit from the improved oil and gas industry outlook in Malaysia and Brunei. “As the OSV segment continues to see more activities, we are making continuous efforts to improve operational efficiency and maximise utilisation rates, and we will continue to leverage on our continued presence in Brunei,” Hadian said in the statement. “Going forward, the performance of the OSV segment should improve with higher daily charter rates that took effect in 3QFY2022 and higher utilisation rates,” he said. KUALA LUMPUR (Feb 28): IHH Healthcare Bhd reported a 57.8% decline in its net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) to RM191.3 million, from RM453.6 million a year ago, due to an impairment loss of RM305.9 million in relation to the group’s assets and goodwill in China amid Covid-19 restrictions, and higher net finance costs and adjustments relating to MFRS 129. In a Bursa Malaysia filing, the group said its earnings per share (EPS) fell to 2.2 sen from 4.9 sen in 4QFY2021. Meanwhile, revenue rose 8.9% to RM4.9 billion from RM4.5 billion a year ago, thanks to more local and foreign patients returning. “Foreign patient volume recovery was especially strong in Malaysia and Singapore. The ramp-up of Gleneagles Hong Kong Hospital (GHK) and contribution from Acibadem Bel Medic in Serbia and Acibadem Adana Ortopedia Hospital in Türkiye also contributed to the higher revenue,” it said. For the full year ended Dec 31, 2022 (FY2022), the group’s net profit slipped 17% to RM1.5 billion from RM1.9 billion a year ago, despite its revenue rising 5% to RM18 billion from RM17.1 billion. Net profit declined due the RM1.5 billion impairment loss relating to its assets and goodwill in China, while revenue rose due to a high Covid-19 base in FY2021, as well as the impact from a weaker lira and MFRS 129-related adjustments. “Even with the impairment losses, return on equity was at 6.4% as at end-December 2022. Balance sheet remained strong, with net cash generated from operating activities of RM3.7 billion and an overall cash balance of RM3.7 billion. Hefty gain on rig sale lifts Icon Offshore 4Q net profit sharply higher IHH’s 4Q profit falls 58% on impairment loss from China assets BY HAILEY CHUNG theedgemarkets.com BY LAM JIAN WYN theedgemarkets.com BY SYAFIQAH SALIM theedgemarkets.com Read the full story Read the full story billion in 2QFY2022 on lower contribution from the plantation segment due to higher cost of production, lower crude palm oil and palm kernel prices, and decrease in share of associate results. For the first six months of FY2023, IOI Corp’s net profit rose 13.89% to RM879.6 million, from RM772.3 million in the previous corresponding period, although revenue decreased 9.97% to RM6.97 billion from RM7.74 billion.

WEDNESDAY MARCH 1, 2023 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 28): Capital A Bhd’s net loss narrowed to RM2.48 billion in the financial year ended Dec 31, 2022 (FY2022), from the loss of RM2.99 billion recorded in 2021, as air travel bounced back strongly in the fourth quarter. Revenue soared to RM6.61 billion in 2022 compared with RM1.84 billion in the previous year due to the relaxation of travel restrictions, the operator of AirAsia said in a filing to Bursa Malaysia on Tuesday. In the fourth quarter of FY2022 (4QFY2022), Capital A returned to the black with a net profit of RM256.2 million against a net loss of RM756.59 million in 4QFY2021, while revenue surged to RM2.37 billion from RM821.04 million previously. Robust fourth quarter narrows Capital A’s net loss in FY22 KUALA LUMPUR (Feb 28): Malaysia Airports Holdings Bhd (MAHB) has returned to the black with a RM359.14 million net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022), versus a net loss of RM136.73 million a year earlier, boosted by higher revenue, reduction in utilisation fees and better share of results from joint ventures and associates. The airport operator had been in the red for 11 consecutive quarters since 1QFY2020. “After a tumultuous period of uncertainty and challenges, passenger traffic is steadily improving and recovering closer to pre-pandemic levels,” said MAHB managing director Datuk Iskandar Mizal Mahmood in a statement on Tuesday (Feb 28). The group declared a final dividend of 3.91 sen per share totalling RM64.87 million, with the payment date to be announced later. The return to profitability was achieved on the back of an 81.89% jump in revenue to RM1 billion, from RM551.34 million in 4QFY2021, in tandem with the significant increase in passenger volumes, driven by further easing of travel protocols and further resumption of airline services and connectivity. In line with the higher revenue, MAHB registered an increase in cost due to higher user fees payable under the operating agreement and higher revenue share payable under Istanbul Sabiha Gökçen International Airport’s concession. “Other operational costs moderately increased to meet operational requirements with the increase in passenger traffic. The higher depreciation is in line with passenger traffic increase,” the group said in a Bursa Malaysia filing. On its operations performance, MAHB said the loss before tax (LBT) for its Malaysia operations narrowed to RM61.1 million, from RM193.7 million in 4QFY2021. Türkiye operations, meanwhile, recorded a profit before tax (PBT) of RM504.4 million, versus a LBT of RM22.3 million a year ago, while Qatar operations posted a higher PBT of RM1.9 million from RM1 million. The group’s share of results from associates recorded profits of RM16.2 million compared with a loss of RM800,000 previously, mainly contributed by profits from MFMA Development Sdn Bhd, KAF and Alibaba KLIA Aeropolis Sdn Bhd. The share of results of joint ventures totalled RM4.7 million, compared with a RM10.6 million loss a year ago, boosted by profits from Segi Astana Sdn Bhd and Airport Cooling Energy Supply Sdn Bhd. Helped by the better quarterly results, MAHB also saw a turnaround in its full-year earnings with a net profit of RM187.2 million, compared with a RM766.44 million net loss in FY2021, as revenue jumped 86.91% to RM3.13 billion from RM1.67 billion. Read the full story MAHB swings back to the black in 4Q after 11 straight quarters of loss High airfares are here to stay, AirAsia’s Fernandes says BY SYAFIQAH SALIM theedgemarkets.com BY PETER VERCOE & HASLINDA AMIN Bloomberg Bernama (Feb 28): High airfares are here to stay as airlines take advantage of the post-pandemic travel boom to lock in higher charges, Capital A Bhd chief executive officer Tony Fernandes said. “The fare environment is very good,” Fernandes said in an interview with Bloomberg Television on Tuesday from the sidelines of the Aviation Festival Asia in Singapore. “I think airlines have always underpriced their product. People are getting a little bit of a shock because they see prices a bit higher, but really, we’ve been behind the curve on that as an industry.” Airlines around the world have pushed up fares as demand outstrips supply, following rapid rebound in travel after years of pandemic-era restrictions and as carriers struggle to get planes back in the sky. “It’s not high prices, it’s real prices,” Fernandes said. “I think the fares you’re seeing now are really what you should have seen in 2019 as well.” “After not having travelled for three years, peoples’ value of travel has also gone up,” he added. “If you don’t have it for three years, you see how important it was.” AirAsia will have its entire fleet of more than 200 planes back in service a year earlier than initially planned, Fernandes said. “[A total of] 83% of the group’s revenue was attributed to the aviation segment, while 6% was derived from the logistics business, 8% from the digital and other businesses, and the remaining 3% was contributed by the engineering business. “The revenue for engineering was more than double the revenue in the fourth quarter of 2021, while Teleport saw an increase in revenue by 17%, mainly due to contribution from international widebody capacity in 4QFY2022,” it said. The group reported positive earnings before interest, taxes, depreciation, and amortization (Ebitda) of RM488.6 million in 4QFY2022 compared with a negative Ebitda of RM350.2 million in 4QFY2021, following the reversal of impairment on rightof-use assets of RM160.8 million that was related to operating aircraft, impairment on investment securities and receivables of RM53.3 million.

wednesday M A rch 1, 2023 10 The E dge C E O m o rning brief home news In brie f Oriental posts loss in 4Q on higher finance costs KUALA LUMPUR (Feb 28): Oriental Holdings Bhd sank into the red with a net loss of RM6.16 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), against a net profit of RM95.32 million a year earlier, due to higher finance costs and tax expenses. It was also due to lower earnings from operating activities and lower share of profit of equity accounted associates, as well as foreign currency losses and fair value losses on equity instruments, the group said in a Bursa Malaysia filing. This is the group’s first quarterly loss since 1QFY2020, when it posted a net loss of RM81.77 million. Oriental posted a revenue of RM986.45 million in 4QFY2022, up 9.05% from RM904.58 million a year earlier. The group’s finance costs during the quarter rose 74.4% to RM31.16 million from RM17.87 million a year earlier, while tax expenses increased 16.1% to RM36.67 million from RM31.57 million. — by Justin Lim Hengyuan posts second straight quarterly loss KUALA LUMPUR (Feb 28): Hengyuan Refining Co Bhd posted a net loss of RM232.1 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) against a net profit of RM179.78 million a year earlier, as earnings were affected by a softening of motor gas (mogas) cracks and lower sales volume due to scheduled plant maintenance. This is the group’s second straight quarterly loss after booking a higher net loss of RM640.48 million in 3QFY2022. Conditions in 4QFY2022 were less harsh than in 3QFY2022 despite continued pressures on mogas cracks and high crude premium costs, the group said in a bourse filing. Hengyuan said the product prices averaged US$110 per barrel during the quarter compared with US$92 a year ago, while the lower sales volume achieved was due to scheduled plant maintenance. — by Justin Lim Read also: Gamuda in, Hartalega out of MSCI Emerging Market Index QL Resources’ 3Q profit up 65% S P Setia posts RM90.3 mil profit in 4QFY22 Mah Sing eyes RM2.2 bil property sales in 2023 Sime Darby Property's 4Q profit surges 64% Mohamad Salim is new MCMC chairman KUALA LUMPUR (Feb 28): Tan Sri Mohamad Salim Fateh Din has been appointed as the new Malaysian Communications and Multimedia (MCMC) chairman for a term of two years, effective March 1. His appointment was announced by Minister of Communications and Digital Fahmi Fadzil in a Facebook post on Tuesday (Feb 28). “I believe his appointment will help us in the effort to overcome all communication infrastructure issues including for the three per cent of the population who have yet to get access to the Internet, to address the digital gap and drive Malaysia towards a golden digital decade,” the minister said. Mohamad Salim has served as MCMC Board member and interim chairman from June 2022 to January 2023. — Bernama Read the full story Read the full story Tan Chong posts third straight annual loss KUALA LUMPUR (Feb 28): Tan Chong Motor Holdings Bhd slipped into the red with a net loss of RM44.71 million in the fourth quarter ended Dec 31, 2022 (4QFY2022), compared to a net profit of RM43.26 million a year earlier, due to lower revenue and a net foreign exchange loss of RM45.2 million. Excluding the exceptional forex loss, the Nissan vehicles franchise holder’s recorded an underlying profit before tax of RM7.2 million, Tan Chong’s bourse filing showed. Tan Chong last incurred a quarterly loss in 1QFY2022, when it posted a net loss of RM19.52 million on the back of revenue of RM769.3 million For the full year, the group posted a bigger net loss of RM51.11 million from RM15.42 million in FY2021, amid lower forex gain of RM1.6 million (versus a net forex gain of RM38 million previously) which was cushioned by a one-off compensation for litigation in Cambodia of RM17.6 million. This is Tan Chong’s third straight annual loss since FY2020, when it posted a net loss of RM165.58 million. — by Justin Lim GDEX posts first full-year loss since it was listed in 2005 KUALA LUMPUR (Feb 28): GDEX Bhd reported a net loss of RM6.01 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), compared to a net profit of RM5.91 million a year earlier, due to weaker earnings contributions from both its courier and logistic services segments. The group has been in the red since 1QFY2022. For the full financial year, GDEX registered a net loss of RM18.02 million versus a net profit of RM27.35 million in FY2021. This is the group’s first full-year loss since it was listed on the ACE Market in 2005, before being transferred to the Main Market in 2013. — by Justin Lim Land sale loss provisions weigh on Tropicana in 4Q KUALA LUMPUR (Feb 28): Tropicana Corp Bhd posted a net loss of RM307.92 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) against a net profit of RM7.94 million the year before. In a Bursa Malaysia filing, the property developer attributed the loss to the proposed disposals of two parcels of development land for RM244.4 million, which also caused 4QFY2022 results to be weaker year-on-year as the proposed disposals have given rise to provisions for foreseeable losses of RM298.6 million. Lower progress billings across key projects in the Klang Valley and southern region also widened the loss, the developer explained. Excluding these provisions arising from the proposed land disposals, the developer’s loss before tax in 4QFY2022 would have been RM10.3 million, compared to RM308.91 million, read the filing. The quarterly losses dragged Tropicana’s performance for the full financial year ended Dec 31, 2022 (FY2022) to an annual net loss of RM429.14 million. — by Justin Lim TIME’s 4Q profit up on higher revenue KUALA LUMPUR (Feb 28): TIME dotCom Bhd’s net profit grew 12.57% to RM122.24 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), from RM108.59 million in the previous year, mainly due to higher recurring data revenue. For FY2022, net profit increased by 14.43% to RM449.91 million, from RM393.16 million a year earlier. TIME also saw a record-high revenue in FY2022 as consolidated revenue was at RM1.58 billion, 12.9% higher than the RM1.4 billion in FY2021.— by Hailey Chung

WEDNESDAY MARCH 1, 2023 11 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 MARCH 1, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 28): Shares of Velesto Energy Bhd were actively traded on Tuesday as its stock price nosedived nearly 31% following the group posting a net loss of RM26 million for its fourth quarter ended Dec 31, 2022 (4QFY2022). Velesto opened at 23.5 sen on Tuesday, a big drop from Monday’s close of 27.5 sen. At the end of the morning trading session, the counter had fallen by as much as 9.5 sen or 34.5% to its intraday low of 18 sen. The stock, however, pared some losses while staying range bound for the remainder of Tuesday. At the closing bell, Velesto was still down by 8.5 sen or 30.9%, as the counter settled at 19 sen, with 581.07 million shares traded, giving it a market capitalisation at RM1.53 billion. It was the most active counter on Tuesday, followed by Hartalega Holdings Bhd and Gamuda Bhd. On Monday (Feb 27), Velesto posted a net loss of RM26 million versus a net profit of RM5.43 million a year ago, as the bottom line was hit by higher operating expenses, finance costs and taxation. Read the full story Read also: AmInvestment raises fair value for Spritzer to RM2.90 Velesto shares plunge 31% after 4Q loss KUALA LUMPUR (Feb 28): Amway (Malaysia) Holdings Bhd was the sixth top gainer on Bursa Malaysia on Tuesday (Feb 28), as its stock price jumped as much as 9% in the morning trading session, after the group announced a special dividend and stronger earnings performance on Monday. The counter opened at RM5.60 on Tuesday morning, a gap up from its closing price of RM5.40 on Monday. It gained as much as 49 sen or 9% to its intraday high of RM5.89. At the closing bell, Amway Malaysia settled 32 sen or 5.9% higher at RM5.72, with 91,200 shares changing hands, giving it a market capitalisation of RM940.29 million. Amway Malaysia gains as much as 9% after announcing special dividend SC, Cambodian securities regulator ink MOU on cooperation, capacity building BY SUFI MUHAMAD theedgemarkets.com Bernama BY SURIN MURUGIAH & SUFI MUHAMAD theedgemarkets.com Amway (M) Holdings Bhd 0 4 8 12 Feb 22, 2023 Feb 28, 2023 5.0 5.5 6.0 Vol (’000) RM RM5.42 RM5.72 *As of 4:51pm, Feb 28, 2023 Source: Bloomberg The group on Monday declared a fourth single-tier interim dividend of five sen per share, plus a special single-tier interim dividend of 18 sen per share, payable on March 29, 2023. The special dividend came after its net profit surged to RM22.98 million for the fourth quarter ended Dec 31, 2022, nearly 27 times more than RM852,000 a year earlier. The stronger net profit was attributed to price increases, normalisation of Amway Business Owner (ABO) incentives, and ABO incentive trip cancellation. Velesto Energy Bhd 0 5 10 15 20 25 4:59pm Feb 28, 2023 15 20 25 Vol (mil) Sen Source: Bloomberg 23.5 sen 19 sen 9:01am KUALA LUMPUR (Feb 28): The Securities Commission Malaysia (SC) and the Securities and Exchange Regulator of Cambodia (SERC) signed a memorandum of understanding (MOU) on Monday (Feb 27) to facilitate greater regulatory, enforcement, and supervisory cooperation between the two regulators. In a joint statement on Tuesday, the two regulators said the MOU was signed in light of growing globalisation, and cross-border activities of regulated entities and persons in the two countries. They said the agreement, which covers cross-border enforcement assistance, regulation, and supervision of capital market intermediaries, and the facilitation of licensing information, would strengthen collaboration in areas of mutual regulatory interest. “In addition, the MOU also addresses capacity building and human capital development, as well as the exchange of regulatory expertise and technical knowledge to facilitate and encourage the development of the respective capital markets, in tandem with continued growth and development of both Malaysian and Cambodian capital markets,” the statement said. SC chairman Datuk Seri Dr Awang Adek Hussin said as connectivity between Asean markets grows, increased regulatory cooperation between authorities becomes imperative. “This MOU significantly enhances bilateral ties between the two authorities, and will be mutually beneficial as we develop and regulate our respective capital markets”, he said. SERC director general Sou Socheat said: “With the MOU signing, the cooperation between the two authorities is highly valued, signalling strong, trusted relationships and sharing of experiences in various areas, especially regulation and supervision. “Both markets will gain from this cooperation, as this will create long-term benefits for our people and countries in the globalisation of the financial market.”

WEDNESDAY MARCH 1, 2023 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 28): Rice is the remaining agricultural commodity that still requires an approved permit (AP) to be imported into the country, while permits to import whole chicken and chicken parts, liquid milk, cabbage, and coconut were abolished last May, said Deputy Agriculture and Food Security Minister Chan Foong Hin (DAP-Kota Kinabalu). The current sole AP holder for rice is Padiberas Nasional Bhd (Bernas), which is responsible for importing rice into the country through a concession that has been extended for 10 years from 2020, Chan told the Dewan Rakyat on Tuesday (Feb 28). “An AP is still required for rice to protect this strategic commodity as a staple food for Malaysians, as well as paddy farmers who are involved in the local paddy industry.” Chan added that there are 10 social obligations for Bernas to comply as terms of the concession, including increasing the national rice stockpile for food security, which is in line with the government’s efforts to capitalise on the country’s paddy and rice industry, while minimising the significant financial requirement to manage the industry. “As of now, the government, through Bernas, has been able to ensure there is sufficient supply of rice in the country at all times,” he said. Apart from APs, Chan said importing agricultural commodities or agriculture-based products also involves import permits (IPs). Chan said IPs are mainly a form of biosecurity control to protect the country from the threat of disease and pests, while maintaining safety and food hygiene, including from the halal aspect. Items that require IPs are those listed under Customs Import Prohibition Order 2017, such as meat or farm animal-based products, which are required to be sourced from slaughterhouses and overseas processing plants certified by the Ministry of Agriculture and Food Security through the Department of Veterinary Services. “In this regard, IP compliance requirements for agricultural products are a standard practice set by importing countries at the international level for the stated [biosecurity] purpose,” he said. Chan was responding to Tan Kok Wai (DAP-Cheras), who asked the government for the types of food items that require a permit to be imported into the country, and the rationale for this requirement. Rice the last agriculture commodity that still needs AP to import KUALA LUMPUR (Feb 28): Sarawak recorded the most illegal logging cases last year, accounting for two-thirds of the total caseloads in the entire nation, according to the Ministry of Natural Resources, Environment and Climate Change. The ministry told Dewan Rakyat that a total of 90 cases of illegal logging were recorded last year, with Perak the second highest for the number of illegal logging activities with 11 cases last year, followed by Kelantan’s 10 cases, four cases in Sabah, two in Selangor, and one each in Johor, Pahang and Negeri Sembilan. “Criminals (who) conducted these KUALA LUMPUR (Feb 28): Lynas Malaysia Sdn Bhd has not received any special treatment or benefits since starting its operations in Malaysia. In a statement on Tuesday (Feb 28), Lynas said the benefits offered to the company when investing in Malaysia are consistent with those offered to other investors. “Malaysia awards pioneer tax status to attract foreign investment in projects of national and strategic importance. These projects involve heavy capital investment, new and emerging technologies, and specialised machinery and equipment. “Tax incentives of this nature are standard practice in countries around the world. The duration of the tax incentive depends upon the size of the investment. Lynas was invited to Malaysia as a foreign direct investor and was qualified for pioneer tax status,” the statement said. The statement was issued in relation to comments made about Lynas’ pioneer tax status in Parliament last Thursday. According to the statement, Lynas, while given a tax exemption for the manufacture of rare earth under pioneer tax status, had paid tax like any other company on non-rare earth-related matters. Last Thursday, the media reported that Science, Technology and Innovation Minister Chang Lih Kang told the Dewan Rakyat that Lynas did not pay a single sen in corporate taxes, as it had been given tax-exempt status by the government for 12 years. Lynas added that it had invested RM3 billion in its plant and equipment in Malaysia, and spent RM730 million annually in the country, while also contributing to the creation of 4,600 direct and indirect local jobs. “Lynas only seeks to be treated fairly and equitably, in line with other companies in Malaysia,” it said. wrongdoings have been charged under the National Forestry Act 1984 in Peninsula Malaysia, Forests Ordinance 2015 (Chapter 71) in Sarawak, and Forest Enactment 1968 in Sabah,” the ministry told Dewan Rakyat in a written reply dated Monday (Feb 27). The ministry was responding to Che Alias Hamid [PAS-Kemaman], who asked for the rate of illegal logging cases in each state since 2022; and to what extent is the effectiveness of new technology like drones in reducing the illegal logging activities. The ministry said the Forestry Departments in Peninsular Malaysia, Sabah and Sarawak have adopted technologies like forest monitoring using remote sensing system in the peninsula, continuous monitoring of surveillance system in Sarawak, and the iForSabah app system in Sabah for forestry monitoring and enforcement. “These systems utilise geographic information system technology, remote sensing and high resolution satellite images to detect any changes within areas of permanent forest reserve,” it said. “In addition, technologies such as drones are also used to help curb forest-related crimes through air monitoring in certain locations,” it added. Sarawak recorded most illegal logging cases in 2022, says Putrajaya Lynas says no special treatment for its investment in Malaysia BY CHESTER TAY theedgemarkets.com Bernama BY CHESTER TAY theedgemarkets.com Read also: Malaysia’s economy to grow at more moderate pace this year — DOSM

WEDNESDAY MARCH 1, 2023 14 THEEDGE CEO MORNING BRIEF HOME (Feb 28): Former Goldman Sachs Group Inc banker and convicted 1MDB conspirator Roger Ng said in a court filing that he spent six months in a squalid Malaysian prison where he was sometimes chained to as many as 20 other inmates. Ng described his previous incarceration in a letter to US District Judge Margo Brodie pleading for leniency when he is sentenced next week for his role in the looting of Malaysian sovereign wealth fund 1Malaysia Development Bhd (1MDB). In the Saturday (Feb 26) letter, Ng argued that the time he spent in Malaysia’s Sungai Buloh prison prior to his May 2019 extradition to the US was “absolute hell” and punishment enough for his crimes. Ng is asking Brodie to give him no additional jail time in the US when she sentences him March 9 in federal court in Brooklyn, New York. Ng, 51, is the only Goldman employee to have gone to trial over the 1MDB scandal. In Sungai Buloh, the onetime managing director said he lived with rats and other vermin, slept on a cement floor and contracted malaria and leptospirosis, a bacterial infection spread through contact with rat urine. When he was taken to court, Ng said he was handcuffed with 20 other prisoners in a “chain” and loaded into a crowded truck. He was held in solitary confinement for up to two weeks at a time, Ng said. “Six months in the Malaysian prison had a devastating effect mentally and physically,” Ng wrote. “Until today, I find myself reclusive socially, as I continue to deal with this brutal and distressing experience. The time without sunlight and in isolation made me lose my mind and become frightful.” Ng was convicted by a federal jury in April of three felony counts, including conspiring to violate US anti-bribery laws and conspiring to launder money. Tim Leissner, Ng’s former Goldman boss, pleaded guilty and was the government’s star witness at trial. Leissner will be sentenced in September. Goldman paid more than US$2.3 billion in the plea deal, the largest penalty in US history for a violation of the Foreign Corrupt Practices Act. More court stories: Shafee reveals show-cause letters over handling of Najib’s SRC case Adam Radlan charged again with soliciting RM2 mil in Jana Wibawa court case Dr M’s defamation suit against Zahid Hamidi over ancestry remark to begin on Sept 11 Ex-Goldman banker Roger Ng says Malaysian jail was ‘absolute hell’ PUTRAJAYA (Feb 28): The Federal Court on Tuesday (Feb 28) reserved its decision over a review application by Datuk Seri Najib Razak over his conviction and 12 years’ jail sentence and RM210 million fine imposed on him in relation to SRC International Sdn Bhd. A five-member bench led by Chief Judge of Sabah and Sarawak Datuk Abdul Rahman Sebli, together with Federal Court judges Datuk Vernon Ong Lam Kiat, Datuk Rhodzhariah Bujang, Datuk Nordin Hassan and Court of Appeal judge Datuk Abu Bakar Jais, indicated that the bench was not in a position to decide on Tuesday. “Parties will be notified not later than March 31, on the decision,” Abdul Rahman said. On Aug 23, 2022, Najib had been sent to Kajang prison to begin serving his jail sentence after a previous five-member Federal Court bench led by Chief Justice Tun Tengku Maimun Tuan Mat, upheld the Court of Appeal and High Court decision that the former Pekan MP was guilty of the crimes for which he was charged in the SRC case. Najib was found guilty of three counts of criminal breach of trust, and another three counts of money laundering of RM42 million of SRC funds between Dec 26, 2014 and Feb 10, 2015. He was also convicted of abuse of power over the approval of a total of RM4 billion in loans in August 2012 and March 2013 by Retirement Fund Inc (KWAP). The Edge is given to understand that justice Ong is due to retire before March 31. Judges face the maximum retirement age of 66 years and six months under the Federal Constitution. Earlier, the bench heard submissions from Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah and ad hoc prosecutor Datuk V Sithambaram. Apex court reserves judgement on Najib’s review application, decision before March 31 Also present in the public gallery were Najib’s wife Datin Seri Rosmah Mansor and his daughter Nooryana Najwa Najib. Earlier, Shafee in his reply to the prosecution’s submission told the bench that justice had not been done in the Federal Court appeal hearing last August and that his client had not been provided with the right to defend himself by a competent counsel. He added that it was not Najib’s fault but the fault of his (then) counsel (Datuk Hisyam Teh Poh Teik) and solicitors (Messrs Zaid Ibrahim, Suflan TH Liew and Partners (ZIST)). Najib not to be blamed at all “Najib is not to be blamed at all. This is the case where the final nail was plunged (by the bench) on Najib because he was not allowed an adjournment,” he said, adding that this five member bench led by Abdul Rahman is seized with the jurisdiction in allowing the review. He added the right to a fair appeal or trial was not granted and this court should rectify this mistake before it gets worse. “This (apex) court must grab the jurisdiction in order for the public to view and gain confidence that the real appellate court would not compromise on the issue of justice,” Shafee said. Read the full story BY HAFIZ YATIM theedgemarkets.com BY PATRICIA HURTADO Bloomberg Datuk Seri Najib Razak SAM FONG/THE EDGE

WEDNESDAY MARCH 1, 2023 15 THEEDGE CEO MORNING BRIEF WORLD (Feb 28): Apple Inc’s Chinese suppliers are likely to move capacity out of the country far faster than many observers anticipate to pre-empt fallout from escalating Beijing-Washington tensions, according to one of the US company’s most important partners. AirPods maker GoerTek Inc is one of the many manufacturers exploring locations beyond its native China, which today cranks out the bulk of the world’s gadgets from iPhones to PlayStations. It’s investing an initial US$280 million in a new Vietnam plant while considering an India expansion, Deputy Chairman Kazuyoshi Yoshinaga said in an interview. US tech companies in particular have been pushing hard for manufacturers like GoerTek to explore alternative locations, said the executive, who oversees GoerTek’s Vietnamese operations from northern Bac Ninh province. “Starting from last month, so many people from the client side are visiting us almost every day,” Yoshinaga said from his offices at GoerTek’s sprawling industrial complex north of Hanoi. The topic that dominates discussions: “When can you move out?” The expanding conflict between the US and China, which began with a trade war but has since expanded to encompass sweeping bans on the exchange of chips and capital, is spurring a rethink of the electronics industry’s decades-old supply chain. The world’s reliance on the Asian nation became starkly clear during the Covid Zero years, when Beijing’s restrictions choked off the supply of everything from phones to cars. Apple’s suppliers rarely comment on its thinking, in part because of the US company’s famous insistence on secrecy across its global supply chain. The iPhone maker has kept mum on whether it plans to diversify out of China, which would entail revamping a model Chief Executive Officer Tim Cook pioneered under Steve Jobs. The US giant has been careful to avoid suggestions it might reduce its investment in China, where it’s built an ecosystem centered on companies such as GoerTek and Foxconn Technology Group, which collectively employ millions. Behind the scenes, 9 out of 10 of Apple’s most important suppliers may be preparing large-scale moves to countries like India, which is dangling incentives to drive Narendra Modi’s Make in India initiative. Bloomberg Intelligence estimates it could take eight years to move just 10% of Apple’s capacity outside of China. The GoerTek executive argues it’ll be far quicker. Most Chinese tech manufacturers are experiencing the same pressure. “I would say currently 90% of them, they’re looking at that,” he added. “It’s the brand companies’ decisions.” India is high on clients’ wish-lists — a reflection of its potential both as a market and a manufacturing base. “We get requests from our clients almost every month. ‘Do you have any plans to expand to India?’” Yoshinaga said. “If they decide to build up the production lines in India, we may have to think about it seriously. Currently we are focusing on developing our Vietnam production facilities.” Vietnam for now is the company’s sole manufacturing site outside of China. The envisioned new 62-hectare complex in Bac Ninh will make products for major US brands and is expected to be operational within a year, Yoshinaga told BY NGUYEN XUAN QUYNH & JOHN BOUDREAU Bloomberg Apple suppliers are racing to exit China, AirPods maker says Bloomberg News. That investment will add to the US$1.06 billion of commitments that GoerTek’s made in Bac Ninh and the north-central province of Nghe An, he added. GoerTek, which also plans to manufacture virtual reality headsets in Vietnam from 2024, expects the Southeast Asian country to produce more than half of its global revenues in three years, up from one-third now, Yoshinaga said. The company is also asking its own suppliers to scout northern Vietnam for new factories, he said. It makes Quest virtual reality headsets for Meta Platforms Inc and Sony Group Corp’s PSVR devices. GoerTek set up operations in Vietnam a decade ago to make acoustic products at the request of Samsung Electronics Co, he said. The supplier now operates eight plants in the country, and expects to double its local workforce to 40,000 as soon as May to ramp up for Christmas, Yoshinaga said. Vietnam’s proximity to China, a coastal network of ports, young educated workforce and relative political stability make the Southeast Asian country an ideal hub, he said. But an anti-corruption campaign, which led to the recent dismissal of the president and two deputy prime ministers, is unsettling, said Yoshinaga, who said he’s expressed that concern to officials. Led by Communist party chief Nguyen Phu Trong, the effort has rattled markets and investors. In 2021, Chinese President Xi Jinping launched an anti-corruption probe aimed at the nation’s $60 trillion financial sector. “They learn too much from China,” Yoshinaga said of Vietnam’s leadership. “Doing something about corruption is good. But don’t go too far and create an unstable political environment.” For now, Vietnam remains an attractive location. Apple may be looking to make the country a manufacturing hub for AirPods, iPads and MacBooks. AirPods orders are dominated by GoerTek and fellow Chinese firm Luxshare Precision Industry Co, which too has a complex in north Vietnam. Many US companies are planning to shift production there, regardless of cost, Yoshinaga said. Others like Jabil Inc are considering India. But overall, the flow is consistently going to be outward from China, he said. “I don’t think it’s going to return. It’s one-way.” US tech companies in particular have been pushing hard for manufacturers like GoerTek to explore alternative locations.

WEDNESDAY MARCH 1, 2023 16 THEEDGE CEO MORNING BRIEF WORLD European high yield debt looks increasingly vulnerable, Deutsche Bank says (Feb 28): Chinese authorities charged Tian Huiyu, the former president of China Merchants Bank Co, over suspected violations including taking bribes and insider trading, after an almost one-year long investigation of the ex-official at the nation’s top retail bank. Tian, 57, will be prosecuted on charges that also include the abuse of power and leaking information, the Supreme People’s Procuratorate said in a statement on Tuesday. He was arrested and expelled from the Communist Party in October. Beijing is stepping up efforts to clean up the US$60 trillion financial system, with authorities stressing the need to prevent systemic risks and safeguard financial stability while striving to bring the world’s second-largest economy back on its feet. Tian allegedly used his positions at firms including the trust arm of China Cinda Asset Management Co and Merchants Bank to gather “huge” bribes in exchange for loan approvals and project undertakings, according to the statement. His misconduct severely damaged national interests, the authorities said. Dozens of officials have been investigated or prosecuted since President Xi Jinping unleashed a campaign to root out corruption in the financial sector in late 2021. While Xi claimed victory in the campaign last year, there are few signs of a let-up. One of China’s top investment bankers disappeared earlier this month and the nation’s top anti-graft body pledged last week to resolutely fight against corruption and crack down on violations in the finance sector and at state-owned enterprises. Tian had helmed Merchants Bank since May 2013. Prior to that, he held various roles at other lenders including Bank of Shanghai Co. He once served as a secretary for Vice-President Wang Qishan when he was the head of China Construction Bank Corp in the 1990s. The shares of Merchants Bank have lost 18% in Hong Kong and 12% in Shanghai since Tian was placed under investigation in April last year. China charges ex-Merchants Bank president over ‘huge’ bribes Bloomberg BY CHIARA ELISEI Reuters Read also: A US$19 bil derivative bond trade in India will unwind with Modi’s new tax BLOOMBERG LONDON (Feb 28): European high yield corporate debt is increasingly vulnerable as the global economy slows, suggesting a higher risk of defaults, Deutshe Bank said in a note on Monday. While the sector spans issuers rated BB+/BA1 and below, those with a single-B rating or lower now make up 38% of Deutsche’s high-yield bond index, the highest in a decade after a wave of real estate downgrades. However, that compares favourably to the United States, where equivalent credit accounts for 51% of a similar index. Sentiment in Europe has received a boost from the recent sharp fall in energy prices and China’s economy reopening but several headwinds remain, including the lagged impact of European Central Bank rate hikes and the risk of a U.S. recession dragging on European corporates, Deutsche noted. the last quarter of 2022 and expectations for 2023 were down 7% versus earlier forecasts. Sales of new high yield bonds got off to a promising start in January, but slowed in February as volatility in interest rate markets weighed, the note said. Nearly 60% of new high yield bond sales came from financials, corporate hybrids - a type of security that has bond and equity features - or fallen angels recently downgraded from investment grade to junk. “Genuine” issuance of lower rated credit was just over 6 billion euros ($6.34 billion). Deutsche said it expected around 55 billion euros in high yield bond supply in 2023, 15 billion euros more than in 2022, and anticipated a marginal increase in merger and acquisition and leveraged buyout activity in the first half of the year. It added that higher financing costs and an uncertain economic outlook should push firms to try to reduce leverage, while refinancing needs for the year were limited but expected to gradually increase from next year. The bank said it sees a better risk/reward play in investment grade credit, such as tier two bank debt and hybrids, particularly if the market sells off. The ECB has raised interest rates by a total of 300 basis points since July to 2.5%. Deutsche, which warned in January that a credit rally would likely end soon, said European earnings had already slowed in REUTERS

WEDNESDAY MARCH 1, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Feb 28): Adani Group isn’t seeking to refinance debt or inject capital, its finance chief said on the sidelines of an investor roadshow aimed at rebuilding confidence in the crisis-ridden Indian conglomerate. Chief financial officer Jugeshinder Singh made the remarks in response to questions from Bloomberg News while attending investor meetings in Hong Kong on Tuesday, the second leg of an Asian tour that began in Singapore this week. Most of the group’s stocks advanced. When asked “Are you looking to refinance any debt?” on the sidelines of the Hong Kong roadshow on Tuesday, Jugeshinder said: “No, we don’t have anything major at all.” “There’s no transactions,” he added, without specifying a time frame or elaborating further. He also said “No” in response to the question: “Are you looking to inject any capital?” The conglomerate, with businesses stretching from ports to renewable energy, tapped international bond buyers for more than US$8 billion in recent years, and its US-currency borrowing costs spiked in response to allegations of fraud and stock manipulation by Hindenburg. Adani Group has repeatedly denied the claims. The Securities Exchange Board of India is looking into all aspects of trading in Adani Group shares and regulatory compliance, said the person, who asked not to be identified because the matter is private. A spokesperson for SEBI declined to comment. Both Hindenburg and Adani Group didn’t respond to Bloomberg’s request for comment. Adani CFO says no refinancing, capital plans at HK roadshow Cloud kitchen operator to run 150 Wendy’s restaurants in India (Feb 28): India’s economy expanded slower than forecast in the three months through December, as a gloomy global outlook and rising borrowing costs dampened activity. Gross domestic product rose 4.4% from a year ago last quarter, according to data released by the Statistics Ministry Tuesday. That’s slower than the 4.7% expansion seen by economists in a Bloomberg survey. The ministry expects growth for the fiscal year that started April 1 to come in at 7%, same as the expansion it had forecast in January. That compares to a revised 9.1% growth in the year ended March 2022. Waning consumption, which accounts for about 60% of GDP, risks hurting growth in Asia’s third-largest economy, as borrowing costs rise. The Reserve Bank of India has increased interest rates by 250 basis points since May to tame inflation and signaled it isn’t ready to pause just yet, amid growing dissent within the rate-setting panel. “My fear is that all sources of demand in the economy are contracting at the same time,” Jayanth Rama Varma, an external member of RBI’s Monetary Policy Committee, said in a recent interview. With exports struggling on waning global demand and the government forges ahead with fiscal consolidation, Varma said rising borrowing costs will dent household budgets and, in turn, consumption. For Shashanka Bhide, another rate setter, demand in the economy is fueling inflation. There might be more pain in store as interest rates go up further and consumer activity in India’s key export market — the US — loses steam. While India’s growth will likely moderate to 6.1% next year, it will be the fastest among major economies in the world, according to the International Monetary Fund. Improving rural and services demand is helping India pull off a relatively strong performance in a tough environment where even China indicators are pointing to an uneven recovery despite its reopening. (Feb 28): Wendy’s Co has struck a deal with cloud kitchen operator Rebel Foods Pvt to scale the fast food chain’s physical presence in India to 150 locations, betting on diners returning to public eateries as the pandemic ebbs. Mumbai-based Rebel will become a master franchisee of the burger brand about two years after the companies signed a cloud kitchen deliveries-only deal. With the latest signing, the startup will help grow the chain through its digital expertise in delivery and automation, the companies said on Tuesday. In the expanded relationship, Rebel will develop about 150 traditional restaurants over the next decade. This is in addition to their December 2020 agreement for Rebel to run 250 cloud kitchens in India, which prepare food for delivery only and don’t serve dine-in customers. Currently, Wendy’s is in 90 locations across 19 cities, with its three traditional restaurants operated by Rebel. “India is a strategic, high-growth potential market for us,” said Abigail Pringle, president for international development at Wendy’s. In a country that’s quickly embraced global fast food brands, Wendy’s and its rivals have eased the adaptation by customizing their menus to suit the local palate. The Ohio-based firm offers a Spicy Aloo Crunch Burger with potatoes, a Paneer Delight Burger with cottage cheese and spicy Masala Fries. Rebel is in discussions with other global fast dining and restaurant chains for similar agreements, co-founder Sagar Kochhar said in an interview. Rebel Foods was founded in 2011 and is backed by Sequoia Capital and Goldman Sachs Group Inc. It works with dozens of homegrown brands and has over 450 kitchens in 70 cities across India. India economy expands slower than forecast on waning demand BY VRISHTI BENIWAL & ANUP ROY Bloomberg BY DOROTHY MA & ANNABELLE DROULERS Bloomberg BY SARITHA RAI Bloomberg Adani CFO Jugeshinder Singh BLOOMBERG

WEDNESDAY MARCH 1, 2023 18 THEEDGE CEO MORNING BRIEF WORLD BERLIN (Feb 28): German prosecutors raided homes of 16 HSBC Holdings plc employees as part of their vast probe into the Cum-Ex tax dividend scandal. The searches started on Tuesday morning, people familiar with the matter said. Cologne prosecutors confirmed they are conducting searches in the Dusseldorf area over Cum-Ex but declined to disclose any names, citing office policy. A spokesman for HSBC said the bank wasn’t raided and declined to comment further. Cum-Ex was a trading strategy across Europe that siphoned off billions of euros in government revenue, by taking advantage of tax laws that seemed to allow multiple investors to claim refunds of a tax on dividends that was paid only once. Germany moved to abolish the practice in 2012. While dating back more than a decade, the scandal still roils the financial industry. Prosecutors in Cologne are investigating more than 1,500 people and are ramping up the pressure on international banks. A long line of institutions were targeted by officials in recent months, including BNP Paribas SA, Bank of America Corp’s Merrill Lynch, and Barclays plc. Separately, Frankfurt prosecutors said they charged a 57-year-old ex-managing director of a German Fortis unit, who in July was arrested in Spain over allegations he orchestrated Cum-Ex transactions that cost German taxpayers €51 million (US$54 million). While they didn’t identify the man or the bank, people familiar with the issue at the time of his arrest said he worked for Fortis. Fortis, parts of which were merged with ABN Amro NV, has long been targeted by Frankfurt prosecutors for its role in the tax scandal. ABN Amro’s Frankfurt offices were raided in 2019 as part of the probe. German prosecutors raid homes of HSBC employees over Cum-Ex (Feb 28): Credit Suisse Group AG “seriously breached” its risk management obligations in the Greensill Capital supply-chain financing affair, Switzerland’s banking regulator has concluded as it closed its probe against the bank. The Swiss bank was ordered to take remedial measures by Finma, which include a periodic executive board level-review of the most important business relationships for counterparty risks, the regulator said in a statement on Tuesday. The bank must also record the responsibilities of its 600 highest-ranking employees in a “responsibility document”, Finma said. The regulator also said it was opening enforcement proceedings against four former managers at the lender, who it didn’t name. Credit Suisse chief executive officer Ulrich Koerner said in a statement he welcomed the conclusion of the probe. “Finma’s review has reinforced many of the findings of the board-initiated independent review and underlines the importance of the actions we have taken in recent years to strengthen our risk and compliance culture,” he said. Credit Suisse shares fell 1.5% at 11.22am in Zurich. Greensill collapse The implosion of Greensill Capital in March 2021 saw Credit Suisse freeze and wind down a US$10 billion group of funds that the Swiss bank had marketed to clients as safe investments. The bank said last week that about US$6.8 billion of the funds have since been returned to investors and will assess a further payout to investors in the first half of this year. Still, the lender has warned of long legal fights to try recoup the remaining money. Credit Suisse said in April 2022 that investors in its Greensill-linked funds should brace for a five-year fight with insurers and problem borrowers as they look to get more of their cash back. Greensill’s collapse has sparked a number of inquiries and investigations in several countries. The firm, with the backing of SoftBank Group Corp and General Atlantic, went from a small startup to a tech unicorn with an estimated US$7 billion valuation at one point. David Cameron, the former UK prime minister, was an adviser to the firm and has faced criticism for his well-paid role at the company. In its statement, Finma criticised the Swiss bank for its approach to risk management. Credit Suisse used employees who managed relations with Greensill to handle warnings, Finma said, which represented a clear conflict of interest as they were “not independent”. The banks also relied on Greensill founder Lex Greensill himself and relied on his answers for its own statements, Finma concluded. Credit Suisse made “partly false and overly positive statements” to Finma about the claims selection process and the funds’ exposure to certain debtors, according to the regulator. As early as 2018, both media and Finma representatives were asking questions about the Greensill funds, the regulator said. There were “many critical observations, too few appropriate reactions”, according to Finma. Finma’s powers to punish banks is limited as it cannot fine the institutions it oversees but rather only order them to repay profit they deem to be ill-gotten. Similarly, sanctions against individuals typically mean a ban from financial services for a certain period of time but rarely include life-time bans. Frozen funds The Greensill-linked funds initially invested in loans backed by invoices that would be paid in a matter of weeks or months, making them relatively safe. But as they grew in size, they strayed from that pitch and much of the money was lent against expected future invoices, for sales that were merely predicted. Credit Suisse was ultimately forced to freeze the funds after a major insurer of the assets refused to continue coverage. For Credit Suisse, the decision to suspend the funds added to a series of hits to the bank. The Swiss bank, which posted a fifth-straight quarterly loss earlier this month, cautioned that it expects another “significant” loss for this year. Executives at the bank now face the challenge of managing a turnaround that isn’t expected to deliver profits until 2024, while trying to hang on to already disgruntled staff. The revamp is intended to reduce risk, spin out the best-performing parts of the investment bank and cut about 9,000 jobs by 2025. Credit Suisse ‘seriously breached’ rules in Greensill case BY HUGO MILLER & MYRIAM BALEZOU Bloomberg BY KARIN MATUSSEK Bloomberg REUTERS

WEDNESDAY MARCH 1, 2023 19 THEEDGE CEO MORNING BRIEF WORLD (Feb 28): Some 33,000 UK civil servants voted to strike over pay, and will join 100,000 other government workers planning a walkout in the middle of next month. Employees from the HM Revenue and Customs, Companies House and the Care Quality Commission voted to strike, the Public and Commercial Services Union said on Tuesday in a statement. It’s a shift in stance after the same union members failed to reach the voting thresholds needed to take action when they were balloted last November in response to pay rises of about 3%. The March 15 industrial action is timed to coincide with Jeremy Hunt’s annual budget, and piles further pressure on the Chancellor of the Exchequer to give ground in a series of long-running disputes with public sector workers from nurses to tax officials. Unions are calling for pay deals that keep pace with double-digit inflation, but Hunt argues if he’s too generous, he risks perpetuating rising prices. Teachers, junior doctors and London Underground subway workers also plan to strike on budget day. But economists said Monday that Britain’s outlook has improved enough to hand Hunt an extra £10 billion (US$12.1 billion) at next month’s budget, and the Institute for Fiscal Studies on Tuesday pushed back against the government’s claim that public sector pay rises would fuel inflation. “They might have hoped we’d go away if they buried their heads in the sand, but they’ve under-estimated the determination of our members, who were praised for keeping the country running during the pandemic but now taken for granted,” PCS general secretary Mark Serwotka said in the statement. “Our members have had enough. Unless ministers put more money on the table, our strikes will continue to escalate.” UK budget day strikes swell as 33,000 more civil servants join HOUSTON (Feb 28): Chevron Corp increased its annual rate of share buybacks in a show of confidence in its cash-generation goals, even after crude prices declined by more than 30% since June. Chevron will repurchase stock at a rate of US$17.5 billion annually beginning in the second quarter, up from a previously planned US$15 billion, the San Ramon, California-based company said in a statement on Tuesday. The top end of its buyback target range rose by a third to US$20 billion a year, giving Chevron scope to raise even further in the future. Chief executive officer Mike Wirth is keen to show that the cash returns promised to shareholders last year when oil soared to more than US$100 a barrel are sustainable despite much lower crude prices today. Before today, analysts questioned whether the second-largest US oil company has enough production growth in its existing portfolio to keep generating the money needed for shareholder payouts. Chevron sought to ease these concerns by pledging production growth of 3% annually, with nearly 900,000 barrels a day extra coming from the Permian Basin, Kazakhstan, Gulf of Mexico and elsewhere by 2027. The Permian will lead the charge with half the expected increase while TCO, its major Kazakh operation, will also provide significant new production once its Future Growth Project is running by 2025. This growth will come despite a flat capital budget, with annual free cash flow increasing more than 10% at US$60-a-barrel Brent prices, Chevron said. The stock climbed 1.3% in premarket trading in New York, matching the rise in Brent. US President Joe Biden has repeatedly criticised Chevron and its rivals for what he says is excessive spending on buybacks following Russia’s invasion of Ukraine. The administration has called for more investment in oil production instead, to boost supply and curtail prices. But Wirth and the US oil industry have pushed back, arguing that production is increasing, and in any case shareholders are entitled to higher payouts after a decade of poor stock market returns. Chevron’s stock has dropped 9.3% this year, compared with a 3.7% decline in the S&P 500 Energy Index. The company recently pulled back this year’s growth targets for the Permian Basin, in part due to weaker-than-expected oil well performance. Chevron still expects the biggest US shale basin to be the cornerstone of its medium-term growth. Production will rise by more than 35% to nearly 1.2 million barrels per day of oil equivalent by 2027, it said. WASHINGTON (Feb 28): The US trade deficit in goods increased moderately in January, with both imports and exports rising solidly, leaving trade on track to have little or no impact on gross domestic product growth early in the first quarter. The goods trade deficit widened 2% to US$91.5 billion, the Commerce Department said on Tuesday. This left the goods trade deficit slightly above the fourth-quarter average. “Trade will probably be starting out the first quarter on track to make a roughly neutral contribution (to GDP),” said Lou Crandall, chief economist at Wrightson ICAP. Goods imports increased 3.4% to US$265.3 billion. Motor vehicle imports surged 9% while imports of consumer goods jumped 6.4%. There were also increases in imports of food and capital goods. But imports of industrial supplies, which include crude oil, fell as did those of other goods. Exports of goods shot up 4.2% to US$173.8 billion, boosted by a 14.8% jump in consumer goods. Motor vehicle exports accelerated 8.2%. Exports of capital goods and food also increased strongly. Shipments of industrial supplies, however, rose moderately and exports of other goods fell. A smaller trade deficit was one of the contributors to the economy’s 2.7% annualized growth pace in the fourth quarter. The other boost to growth came from inventories. There are, however, signs that inventories could be a drag on GDP growth this quarter as businesses either liquidate unwanted goods or hold back placing large orders for merchandise amid fears of a recession this year. The so-called advance indicators report from the Commerce Department on Tuesday also showed wholesale inventories falling 0.4% last month after gaining 0.1% in December, reflecting drops in both durable and non-durable goods. Chevron boosts annual share buyback rate to US$17.5 bil US goods trade deficit widens in January; wholesale inventories decline BY KEVIN CROWLEY Bloomberg BY LUCIA MUTIKANI Reuters BY EAMON AKIL FARHAT Bloomberg

WEDNESDAY MARCH 1, 2023 20 THEEDGE CEO MORNING BRIEF WORLD (Feb 28): German Defense Minister Boris Pistorius will only get at most half the extra cash he wants in his budget for next year, according to people involved in the government’s financial planning for 2024. Pistorius has said he needs an additional €10 billion (US$10.6 billion) to lift annual defense spending to €60 billion and help drive Germany’s push to modernize the military after decades of underfunding. Finance Minister Christian Lindner would be open to an increase of €3 billion, which could potentially be raised to €5 billion if the government reaped more than expected in tax revenue, said the people, who asked not to be identified as the budget talks are confidential. A spokeswoman for the Finance Ministry said it’s against policy to comment on budget negotiations before they’re completed. Russia’s invasion of Ukraine just over a year ago prompted Chancellor Olaf Scholz to declare a “turning point” in German military and security policy and he announced the creation of a special debt-financed fund worth €100 billion alongside the regular defense budget. Boosting outlays on the military has also taken on extra urgency given the amount of weapons and equipment Germany has donated to Ukraine which needs to be replaced. Scholz also pledged that Germany would meet a NATO guideline of spending 2% of gross domestic product on the armed forces, a goal the government in Berlin had consistently failed to meet, irritating allies in the alliance. Although Pistorius has said 2% of GDP should be a minimum, it’s taking time to ramp up spending due to procurement issues, bureaucratic hurdles and backlogs at defense companies. Officials have said Germany may again fail to hit the target this year and instead will reach the goal “on average in the next five years.” To comply with the guideline in 2024, the defense budget would have to rise to at least €65 billion, according to one of the people. Last year, none of the cash from the special fund was spent, while around €8.5 billion is budgeted for this year, the people said. Andre Wuestner, the head of Germany’s armed forces union, said the military is under particular pressure as it’s obliged not only to support Ukraine but to make sure it can fulfill its commitments to NATO. “One thing is clear: The special fund won’t be enough and the defense budget has to increase,” Wuestner said on Monday in an interview with broadcaster RTL/ntv. “Boris Pistorius is on exactly the right flight path with his demand for €10 billion and I’m keen to see where he’ll land,” he said. “This will show whether deeds will follow words when it comes to the ‘turning point.’” The final budget for 2024 won’t be approved by lawmakers in the lower house of Parliament until the end of the year. The ministries are currently thrashing out the details with Lindner before the draft finance plan is due to be approved in cabinet in mid-March. The head of the Free Democratic Party, who has hawkish tendencies on spending, has significantly less room for maneuver after he insisted that the ruling coalition restore a constitutional limit on net borrowing — known as the “debt brake” — starting this year. The mechanism was suspended for three years due to the coronavirus pandemic and the energy crisis triggered by Russia’s attack on Ukraine. Any increase in the defense budget is therefore likely to come at the expense other ministries. Adding to the complexity of the negotiations, the Greens insisted on a clause in the coalition agreement that any increase in defense outlays should be matched by the same boost in funding for development and international cooperation. Given the limited funds available, this won’t be feasible and still needs to be clarified with the Ministry for Economic Cooperation and Development, according to people familiar with the planning. The ministry is run by Svenja Schulze from Scholz’s Social Democratic Party. Read also: Income, spending in China grew far slower in 2022 German finance chief won’t bow to defense minister’s cash appeal (Feb 28): Australia’s government plans to double the tax rate on large pension balances to 30% from 2025-26, saying the change will impact less than 0.5% of account holders and make the system more sustainable. The surprise decision to target those with superannuation balances above A$3 million (US$2 million) comes as the government confronts rising debt amid growing spending pressures on defence, health, age care and disability support, Treasurer Jim Chalmers said on Tuesday. “These challenges mean we need to make responsible budget choices to ensure generous superannuation tax breaks are better targeted and sustainable,” he said shortly after releasing a full accounting of tax expenditures which showed the concessions on pension accounts cost more than A$50 billion every year. The change to the concessional rate will affect around 80,000 people and should rake in about A$2 billion of revenue in its first full year, Chalmers said. Further consultation will be undertaken with the industry and other relevant stakeholders. The announcement comes as the center-left Labor government faces growing pressure to wind back spending to avoid fuelling inflation. The Reserve Bank has flagged more interest-rate increases are under consideration as consumer-price growth remains stubbornly high. The Treasurer, at a news conference with Prime Minister Anthony Albanese, highlighted that the tax change will only apply after the next election, meaning it will be put to the electorate first. Albanese pointed out that 17 people have balances of more than A$100 million and one person has more than A$400 million. Chalmers had been flagging potential changes to superannuation tax breaks ahead of the May 9 budget. He said the country’s top 10 tax concessions and deductions were costing the budget more than A$150 billion every year in lost revenue, a third of which goes to the so-called superannuation industry. Australia to double tax rate for wealthiest pension savers BY SWATI PANDEY & BEN WESTCOTT Bloomberg BY KAMIL KOWALCZE & MICHAEL NIENABER Bloomberg German Finance Minister Christian Lindner (pictured) would be open to an increase of €3 billion, whereas Defense Minister Boris Pistorius has said he needs an additional €10 billion. REUTERS

WEDNESDAY MARCH 1, 2023 21 THEEDGE CEO MORNING BRIEF WORLD (Feb 28): The chatbot battle is heating up, and Mark Zuckerberg is making it clear that Meta Platforms Inc is focusing on artificial intelligence (AI)-powered tools, too. “We’re creating a new top-level product group at Meta focused on generative AI to turbocharge our work in this area,” Meta chief executive officer Zuckerberg said on Monday (Feb 27) in a post on Instagram. “We have a lot of foundational work to do before getting to the really futuristic experiences, but I’m excited about all the new things we’ll build along the way.” For now, he said, the company is trying to use the technology with text-like chats in Meta’s messaging apps WhatsApp and Messenger, and on visual filters for photos and videos on platforms like Instagram. “We’ll focus on developing AI personas that can help people in a variety of ways,” he added. Earlier on Monday, social-networking rival Snap Inc said it’s releasing an AI-enabled chatbot powered by OpenAI’s GPT technology for its subscription members on the Snapchat app. Snap’s news was the latest entry in the race to offer digital tools that can answer users’ questions in natural language format, following similar test releases from internet heavyweights like Microsoft Corp and Alphabet Inc’s Google. The newly formed Meta product group will include dozens of employees from teams that were previously scattered throughout the company. The group will be led by Ahmad Al-Dahle, a machine learning and artificial intelligence executive at Meta, according to a spokesperson. Al-Dahle will report directly to Meta chief product officer Chris Cox, a sign of the social media giant’s intention to further integrate this type of technology across Meta’s range of products. Zuckerberg’s latest post echoes comments he made on Meta’s earnings call earlier this month — that the company is focused on infusing AI in messaging, the advertising business and its algorithm that decides what content people see on Facebook and Instagram. “We are focused on efficiency and continuing to streamline the company as we can execute these priorities,” he said at the time, just months after firing 13% of Meta’s workforce. And last week, the CEO unveiled a large language model called LLaMA, a research tool for building AIbased chatbots and other products. The company plans to make the technology available to AI researchers, a decision that will allow outsiders to see more clearly how the system works, tweak it to their needs, and collaborate on related projects. Read also: Elon Musk recruiting team to develop OpenAI’s ChatGPT rival — sources White House gives agencies 30 days to impose federal device TikTok ban Meta to form AI product team to keep up with chatbot competition (Feb 28): Snap Inc, the maker of the photo-sharing app known as Snapchat, has released an artificial intelligence (AI)-enabled chatbot, becoming the latest major tech company to roll out features powered by OpenAI’s GPT technology. Snapchat’s My AI bot will be pinned to the top of the app’s chat tab, letting users engage directly with the AI as they would with friends on the popular photo sharing and messaging app. Trained to display a “unique tone and personality”, My AI can be used to recommend birthday gift ideas, dinner recipes and “even write a haiku about cheese for your cheddar-obsessed pal”, the company said in a blog post on Monday (Feb 27). The chatbot is available only to Snapchat Plus members, who pay US$3.99 (RM17.91) a month to subscribe. But the company plans eventually to roll it out to all of Snapchat’s 750 million monthly users. “We believe that AI can be incredibly additive to the Snapchat experience and help foster deeper connections between friends and how they relate to the world around them,” the company said. Large language models like OpenAI’s GPT technology have taken the tech world by storm in recent weeks, driving fierce competition among industry heavyweights like Microsoft Corp and Alphabet Inc’s Google. The chatbots, which produce paragraphs of text in response to users’ questions, have attracted scrutiny for producing offensive, inaccurate, or biased answers. States like California have ramped up oversight as researchers point to the propaganda and hacking risks posed by the bots. Snap acknowledged the issues with AI-powered chatbots. “My AI is prone to hallucination and can be tricked into saying just about anything,” the company said. “Please be aware of its many deficiencies and sorry in advance!” Snap warned users to “not share any secrets” with the bot, and refrain from relying on it for advice. The release of “My AI” was reported earlier by The Verge. Snap debuts ‘My AI’ chatbot powered By OpenAI’s GPT technology BY LUCY PAPACHRISTOU Bloomberg BY DAVID SHEPARDSON Reuters BY ALEX BARINKA Bloomberg WASHINGTON (Feb 28): The White House on Monday gave government agencies 30 days to ensure they do not have Chinese-owned app TikTok on federal devices and systems. Office of Management and Budget Director Shalanda Young told agencies in a guidance memorandum seen by Reuters they will be required to adjust information technology contracts to ensure vendors keep U.S. data safe by eliminating the use of TikTok on their devices and systems. TikTok has said the concerns are fueled by misinformation. The action does not affect the more than 100 million Americans who use TikTok on private or company-owned devices. Congress in December voted to bar federal employees from using the Chinese-owned video app on government-owned devices and gave the Biden administration 60 days to issue agency directives. The vote was the latest action by U.S. lawmakers to crack down on Chinese companies amid national security fears that Beijing could use them to spy on Americans. We’re creating a new top-level product group at Meta focused on generative AI to turbocharge our work in this area.

WEDNESDAY MARCH 1, 2023 22 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) VELESTO ENERGY BHD 581.07 -0.085 0.190 26.67 1561.00 HARTALEGA HOLDINGS BHD 215.82 -0.080 1.470 -13.53 5023.70 GAMUDA BHD 175.40 0.000 4.200 12.00 11012.20 HONG SENG CONSOLIDATED BHD 125.82 -0.025 0.130 -40.91 664.10 PHARMANIAGA BHD 124.08 -0.170 0.270 -50.46 353.80 RGB INTERNATIONAL BHD 88.52 -0.020 0.215 19.44 331.30 SMRT HOLDINGS BHD 68.21 0.045 0.425 193.10 189.20 MY EG SERVICES BHD 61.32 0.000 0.720 -16.45 5343.80 SAPURA ENERGY BHD 47.46 -0.005 0.045 28.57 719.10 DAGANG NEXCHANGE BHD 46.29 -0.030 0.605 18.63 1909.60 ATA IMS BHD 46.16 -0.045 0.320 42.22 384.90 PUBLIC BANK BHD 44.46 -0.020 4.130 -4.40 80166.20 METRONIC GLOBAL BHD 42.65 0.000 0.020 0.00 30.6 TECHNA-X BHD 41.26 -0.005 0.020 -20 44.3 BSL CORP BHD 39.54 0.010 0.145 114.5 52 PERDANA PETROLEUM BHD 36.35 -0.010 0.200 60 443.6 ZEN TECH INTERNATIONAL BHD 32.34 -0.005 0.020 0.00 16.2 EA TECHNIQUE M BHD 30.78 -0.020 0.355 108.82 188.3 ADVANCE SYNERGY BHD 30.58 -0.010 0.140 -20.00 354.1 TA WIN HOLDINGS BHD 29.80 -0.005 0.060 9.09 205.4 Data as compiled on Feb 28, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) CARZO HOLDINGS BHD 0.600 50.00 0.5 0.00 57.2 EA HOLDINGS BHD 0.015 50.00 300.2 0.00 96.8 GREEN OCEAN CORP BHD 0.020 33.33 51.1 0.00 42.2 ALAM MARITIM RESOURCES BHD 0.035 16.67 20,130.8 40.00 53.6 PUC BHD 0.035 16.67 320.9 0.00 60.2 TRIVE PROPERTY GROUP BHD 0.075 15.38 1,300.0 7.14 94.8 JERASIA CAPITAL BHD 0.040 14.29 5.0 14.29 3.3 SAUDEE GROUP BHD 0.040 14.29 1,493.7 -11.11 45.6 HARBOUR-LINK GROUP BHD 1.240 12.73 6,138.9 13.76 494.2 LKL INTERNATIONAL BHD 0.235 11.90 4,584.6 -18.63 24.3 SMRT HOLDINGS BHD 0.425 11.84 68,215.3 193.10 189.2 TWL HOLDINGS BHD 0.050 11.11 2,917.8 42.86 199.2 FSBM HOLDINGS BHD 0.260 10.64 145.0 -3.70 46.2 WMG HOLDINGS BHD 0.105 10.53 106.9 10.53 46.7 MTOUCHE TECHNOLOGY BHD 0.055 10.00 243.1 10.00 51.0 YGL CONVERGENCE BHD 0.170 9.68 3,420.5 30.77 43.4 PNE PCB BHD 0.060 9.09 339.1 9.09 33.6 SKB SHUTTERS CORP BHD 0.360 9.09 2,112.6 -5.26 47.5 VIZIONE HOLDINGS BHD 0.060 9.09 857.2 9.09 122.8 KEY ASIC BHD 0.065 8.33 191.2 0.00 90.6 Data as compiled on Feb 28, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) VSOLAR GROUP BHD 0.005 -50.000 595.60 -50.00 24.2 PHARMANIAGA BHD 0.270 -38.640 124,076.27 -50.46 353.8 AT SYSTEMATIZATION BHD 0.010 -33.330 3,443.10 -33.33 60.0 COMPUGATES HOLDINGS BHD 0.010 -33.330 100.70 0.00 55.0 DGB ASIA BHD 0.010 -33.330 77.10 -33.33 17.9 DOLPHIN INTERNATIONAL BHD 0.010 -33.330 248.00 -60.00 13.4 EDUSPEC HOLDINGS BHD 0.010 -33.330 500.10 -50.00 30.5 IQZAN HOLDING BHD 0.030 -33.330 440.00 -14.29 6.7 LAMBO GROUP BHD 0.020 -33.330 2,426.10 -63.64 30.8 VELESTO ENERGY BHD 0.190 -30.910 581,073.96 26.67 1,561.0 PASUKHAS GROUP BHD 0.015 -25.000 2,136.00 0.00 28.6 XOX BHD 0.015 -25.000 765.51 0.00 75.8 AGESON BHD 0.100 -23.080 13,130.33 -51.22 31.2 ZEN TECH INTERNATIONAL BHD 0.020 -20.000 32,341.90 0 16.2 TECHNA-X BHD 0.020 -20.000 41263.4 -20 44.3 NI HSIN GROUP BHD 0.100 -20.000 10,807.50 -28.57 52.5 SOLUTION GROUP BHD 0.220 -20.000 9721.9 -27.87 96.7 ALDRICH RESOURCES BHD 0.025 -16.670 130.00 -16.67 27.8 XOX NETWORKS BHD 0.025 -16.670 112.90 -16.67 28.4 HIAP HUAT HOLDINGS BHD 0.130 -16.130 10,247.40 -3.70 51.4 Data as compiled on Feb 28, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) PETRONAS DAGANGAN BHD 21.020 -0.960 1,821.9 -8.61 20,882.4 AJINOMOTO MALAYSIA BHD 13.600 -0.540 139.9 3.98 826.9 YSP SOUTHEAST ASIA HOLDINGS 2.470 -0.450 2,481.9 -3.14 348.5 PANASONIC MANUFACTURING 23.500 -0.440 18.1 2.62 1,427.5 PMB TECHNOLOGY BHD 4.400 -0.320 2,579.7 4.76 5,560.5 KESM INDUSTRIES BHD 8.000 -0.300 21.8 13.96 344 TENAGA NASIONAL BHD 9.370 -0.270 7,087.7 -2.70 53,906.3 GUAN CHONG BHD 2.400 -0.190 730.3 0.00 2,818.8 KOTRA INDUSTRIES BHD 6.110 -0.190 16.4 -7.42 904.3 KEIN HING INTERNATIONAL BHD 1.710 -0.170 2423.2 -19.34 186.2 PHARMANIAGA BHD 0.270 -0.170 124,076.3 -50.46 353.8 AEON CREDIT SERVICE M BHD 12.000 -0.160 274.6 -4.61 3063.7 CAHYA MATA SARAWAK BHD 1.180 -0.160 27,292.9 10.28 1,267.5 TRANSOCEAN HOLDINGS BHD 1.820 -0.140 12.0 -5.21 118.5 ANN JOO RESOURCES BHD 1.150 -0.130 2069.6 5.5 645.6 GENTING PLANTATIONS BHD 6.020 -0.130 221.5 -5.94 5401.1 DKSH HOLDINGS MALAYSIA BHD 4.820 -0.120 39.2 8.31 759.9 SFP TECH HOLDINGS BHD 2.580 -0.120 2525.5 43.33 2064 MALAYSIA AIRPORTS HOLDINGS 6.790 -0.110 3111.2 3.51 11265.9 KHIND HOLDINGS BHD 2.800 -0.110 5.7 -9.68 117.7 Data as compiled on Feb 28, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) HEXTARTECHNOLOGIES SOLUTIONS 27.000 1.300 99.8 58.26 3,473.5 HEINEKEN MALAYSIA BHD 28.620 0.840 1,104.7 13.57 8,646.0 UNITED PLANTATIONS BHD 16.500 0.500 365.9 7.84 6,819.5 CARLSBERG BREWERY MALAYSIA 22.960 0.480 588.2 0.35 7,020.0 MALAYSIAN PACIFIC INDUSTRIES 29.940 0.440 90.9 4.10 5,955.0 AMWAY MALAYSIA HOLDINGS BHD 5.720 0.320 91.2 14.40 940.3 FRASER & NEAVE HOLDINGS BHD 27.500 0.320 534.5 27.43 10,086.4 BRITISH AMERICAN TOBACCO 11.780 0.300 627.4 4.99 3,363.5 CHIN HIN GROUP BHD 3.960 0.220 4,295.5 22.60 7,006.9 MISC BHD 7.560 0.210 3,849.5 0.80 33,745.9 CARZO HOLDINGS BHD 0.600 0.200 0.5 0.00 57.2 DUTCH LADY MILK INDUSTRIES 29.140 0.180 4.6 -3.64 1,865.0 UWC BHD 4.010 0.170 595.6 -0.25 4,416.5 PENTAMASTER CORP BHD 5.060 0.160 534.5 14.22 3,599.3 BATU KAWAN BHD 21.240 0.140 9.7 -4.75 8,355.4 HARBOUR-LINK GROUP BHD 1.240 0.140 6138.9 13.76 494.2 HONG LEONG BANK BHD 20.540 0.120 2,727.6 -0.10 44,524.9 KLUANG RUBBER CO MALAYA BHD 3.950 0.120 2.1 -0.25 245.7 WESTPORTS HOLDINGS BHD 3.700 0.120 672.9 -2.63 12,617.0 QL RESOURCES BHD 5.810 0.110 39.84 4.50 14,100.0 Data as compiled on Feb 28, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DOW JONES 32,889.09 72.17 0.22 S&P 500 3,982.24 12.20 0.31 NASDAQ 100 12,057.79 88.14 0.74 FTSE 100 7,903.91 -31.20 -0.39 AUSTRALIA 7,258.40 33.59 0.46 CHINA 3,279.61 21.57 0.66 HONG KONG 19,785.94 -157.57 -0.79 INDIA 58,962.12 -326.23 -0.55 INDONESIA 6,843.24 -11.54 -0.17 JAPAN 27,445.56 21.60 0.08 KOREA 2,412.85 10.21 0.42 PHILIPPINES 6,556.20 -43.14 -0.65 SINGAPORE 3,262.63 -0.61 -0.02 TAIWAN 15,503.79 -111.62 -0.71 THAILAND 1,622.35 -5.00 -0.31 VIETNAM 1,024.68 3.43 0.34 Data as compiled on Feb 28, 2023 Source: Bloomberg CPO RM 4,235.0089.00 OIL US$ 81.070.47 RM/USD 4.4340 RM/SGD 3.3008 RM/AUD 3.0229 RM/GBP 5.3349 RM/EUR 4.6963