The Edge 06/05/21

T H U R S DAY, M AY 6 , 2 0 2 1 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 180/2021

CEOMorningBrief

MORE MEGA PPVS WILL BE OPENED
FOR COVID-19 VACCINATION, SAYS KHAIRY p3

T H U R S DAY, M AY 6 , 2 0 2 1 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 180/2021

CEOMorningBrief
HOME: Supermax: Rubber glove spot prices on downtrend, falling 15% to 25% p5
Three Seni Jaya directors resign over concerns about possible takeover exercise p7
Cahya Mata Sarawak suspends CFO to facilitate probe into financial mismanagement claim p7

WORLD: Cheap bets on US$100 oil in vogue as traders eye bullish summer p15

RM3.5bGovt launches
KL, Johor
Jaringan Prihatin Bahru also
to subsidise fall under
MCO 3.0 as
data plan restrictions
subscriptions, expand
mobile device
purchases amid rising
Covid-19
cases

Report on Page 4. Report on Page 2.

NEW PRESTIGIOUS RESIDENCES
AT KLGCC RESORT

THURSDAY MAY 6, 2021 2 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 5): Kuala Lum- KL, Johor Bahru to allow any official or non-official events
pur and several districts and mukims in also fall under by the government or private sector in all
Terengganu, Johor and Perak will be placed MCO 3.0 as areas under the MCO. Also banned are so-
under the Movement Control Order (MCO) restrictions cial events such as ‘kenduri’, weddings, en-
from May 7 to 20. expand amid gagement parties, receptions, ‘akikah’, ‘doa
rising Covid-19 selamat’, ‘tahlil’, and birthdays. “Dine-ins
Senior Minister (Security Cluster) Datuk cases are not allowed,” he added.
Seri Ismail SabriYaakob said the MCO in
Kuala Lumpur was enforced following the Bernama Ismail Sabri also announced that Kam-
increase in the number of daily cases and pung Lubok Katak in Tapah, Perak; Kam-
new clusters. He said the Health Ministry PATRICK GOH/THE EDGE pung PermatangTulang Mukim Sebatu, Ja-
(MOH) confirmed that 17 new clusters were sin, Melaka and Sekolah Menengah Ugama
recorded from April 1 to 27 here. the Jalan Kolam Dua cluster at Kampung (SMU) Pantai Manis, Papar, Sabah would
Expo, Jalan Pokok Assam cluster at Kam- be placed under the Enhanced Movement
“After reviewing the presentation and pung Pokok Assam and Jalan Sepat cluster Control Order (EMCO) beginning Friday
proposals from the MOH, the government in Kamunting,” he said. until May 20,following a jump in positive cas-
agreed to enforce MCO in Kuala Lumpur es as well as high active cases in these areas.
until May 20.The SOP (standard operating The enforcement of the MCO in all the
procedure) is per what has been announced areas was to ensure the movement of the peo- “The EMCO at SMKA Johor Bahru,
before,” he said in a statement today. ple could be controlled as well as to facilitate Johor; Maahad Tahfiz Al-Quran Al Asriah,
mass screenings to prevent further infection. Banggol Chicha, Pasir Mas, Sekolah Menen-
Apart from that, Ismail Sabri said 14 gah Sains Machang, Kelantan; and Kam-
mukims in the Besut district, (except Mukim Based on the current Covid-19 situation, pung Sileng Dayak, Lundu, Sarawak will
Hulu Besut) would also be placed under he said the government has also agreed not end tomorrow,” he said.
MCO for the same period after the MOH
recorded 406 positive cases from 5,617 However, the EMCO scheduled to end
screenings carried out on the residents at tomorrow at Rumah Panjang Giman, Batu
the localities between April 1 and May 3. 13, Jalan Engkamop, Pakan, Sarikei; Kam-
pung Rayang, Serian; and Rumah Panjang
The affected mukims are Kampung Raja, Jalan Bukut Balingian, Mukah, Sarawak has
Lubuk Kawah, Pelagat, Tenang, Keluang, been extended to May 20, as a risk assess-
Bukit Kenak, Kubang Bemban, Jabi, Keran- ment has confirmed that there are still posi-
dang, Pengkalan Nangka, Pasir Akar,Tem- tive cases and infections in all areas involved.
bila, Bukit Puteri and Kuala Besut. Read also:
Economic sector in MCO areas can
Ismail Sabri said the surge in cases in operate as usual subject to existing SOPs
Besut stemmed from the movements of stu- — MITI Click here
dents and workers from neighbouring states, All schools in Kuala Lumpur and
with infectivity reaching 95%. The district Putrajaya to be closed on May 6 and 7
also recorded 15 clusters within the period, — Education Ministry Click here
with some having spread to other localities. All schools in Selangor to close from
tomorrow, says MB Click here
Meanwhile, in Johor, the areas placed un- Malaysia bans entry of travellers from
der MCO are Johor Bahru, Kulai and Kota Bangladesh, Pakistan, Nepal and Sri
Tinggi due to the high number of active cases Lanka — Ismail Sabri Click here
recorded in the localities, with most cases be-
ing sporadic in the community.These three
districts have been classified as red zones
with more than 150 cases reported while the
capacity in hospital and intensive care units
there have reached more than 70%, he said.

In Perak, the MCO areas are Mukim
Taiping as well as Larut Matang and Se-
lama district following a sharp increase in
positive cases.“The MOH also reported that
the number of cases have increased for three
active clusters in Mukim Taiping, namely

THURSDAY MAY 6, 2021 3 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 5): More mega More mega PPVs Khairy also said that for the first time, the
Vaccine Dispensing Centres (PPVs) that can will be opened four PPVs for dispensing the AstraZeneca
manage more than 2,000 appointments for for Covid-19 vaccine used the services of private medical
vaccine recipients daily will be opened for vaccination, practitioners registered with Protect Health
the third phase of the National Covid-19 says Khairy Corp Sdn Bhd to provide vaccine injections.
Immunisation Programme.
Bernama Prior to this, all 286,000 doses of As-
National Covid-19 Immunisation Pro- traZeneca offered under the first phase
gramme Coordinating Minister Khairy Ja- SUHAIMI YUSUF/THE EDGE were fully booked within three hours after
maluddin said the first mega PPV at the registration opened on Sunday, subject to
WorldTrade Center (WTC) Kuala Lumpur 1.1 million doses of the vaccine will arrive certain conditions.
opened today for administering the Astra- in Malaysia around May.
Zeneca vaccine is capable of accommodating Among them, those opting in for the
2,468 appointments in a day. The opening of these PPVs only takes a AstraZeneca vaccine must be 18 years old
short time and will go hand in hand with and above, residents in Selangor and Kuala
“We have plans to open more mega the supply of vaccines, he said. Lumpur apart having registered as vaccine
PPVs when more vaccine doses come,” recipients under the National Covid-19
he told a press conference after checking Immunisation Programme.
on the first day of AstraZeneca vaccine
administration at theWorld Trade Centre Before this, the AstraZeneca vaccine
(WTC) PPV here today. had raised public concerns following re-
ports of incidents of blood clots or throm-
TheWTC PPV is one of four to provide bosis among recipients.
AstraZeneca vaccine injections to Malay- Read also:
sians and foreigners living in the country, MOSTI to discuss with vaccine task
starting today. force on AstraZeneca vaccine registration
issue, says Khairy Click here
The other three are at Universiti Malaya,
Universiti Kebangsaan Malaysia and the Ide- South Korea says AstraZeneca, Pfizer
al Convention Centre (IDCC) in ShahAlam. Covid-19 vaccines 87% effective after
first shot Click here
Meanwhile, Khairy, who is also Science,
Technology and Innovation Minister, said
the priority to expand PPV coverage for
AstraZeneca vaccine injection in red zone
states was also under discussion as another

Malaysia’s new daily cases jump to 3,744 with 17 deaths

BY SYAFIQAH SALIM Malaysia’s coronavirus curve showing nascent signs of upward climb
theedgemarkets.com
6000 Daily new cases 7-day moving average
KUALA LUMPUR (May 5): Malaysia
today recorded 3,744 new Covid-19 cas- 5000
es, up from 3,120 yesterday, with 17 more
deaths related to the coronavirus, accord- 4000 3,744
ing to Health Director-GeneralTan Sri Dr 3000 3,255
Noor Hisham Abdullah.
2000
The new Covid-19 cases today pushed
the nation’s cumulative coronavirus cases 1000
to 424,376, while total fatalities now stand
at 1,591, Dr Noor Hisham said in a state- 0 May 5, 2021
ment. Of the 3,744 new cases, seven were Sept 1, 2020
imported while the remainder were local
transmissions. Sarawak at 419. Elsewhere, Kuala Lumpur tions, four were identified among educa-
reported 313 cases while Johor registered tion institutions, while two involved places
As for the 17 new fatalities, 10 were 292 newly confirmed infected individuals. of worship.
women while seven were men. Aged be- Read also:
tween 42 and 82, they were all Malaysians. The ministry also identified 20 new Cov- Covid-19: Kelantan has submitted
Nine of the fatalities were reported from id-19 clusters in the past 24 hours, raising report on critical situation to Federal
Selangor, two each from Johor, Perak and the total number of infection clusters iden- govt, says MB Click here
Sarawak, and one each from Kelantan and tified to 1,726.
Negeri Sembilan. Covid-19 patient runs away from Sungai
Four of them were found in Sarawak, Petani hospital Click here
New recoveries, meanwhile, came in at three each in Kuala Lumpur, Selangor, Jo-
2,304 individuals, raising total recoveries hor and Pahang, two in Kelantan and one
from Covid-19 to 389,846. in Perak.

State-wise, Selangor again topped the Eight of these clusters were linked to
list with the highest number of daily cases workplaces, six involved community infec-
at 1,548, followed by Kelantan at 480 and

THURSDAY MAY 6, 2021 4 THEEDGE CEO MORNING BRIEF

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Govt launches RM3.5b Jaringan Prihatin
to subsidise data plan subscriptions,
mobile device purchases

BLOOMBERG

BY EMIR ZAINUL
theedgemarkets.com

KUALA LUMPUR (May 5): As part of Tan Sri Muhyiddin Yassin
the government’s efforts to bridge the
digital divide by addressing the issue of strategies, which are accessibility, finan- ty to equip themselves with digital skills
affordability, Prime MinisterTan Sri Mu- cial affordability, and skills. such as online business or e-commerce.
hyiddinYassin today launched the RM3.5
billion Jaringan Prihatin programme to Under accessibility, Muhyiddin said Finance Minister Tengku Datuk Seri
assist in subscriptions of broadband in- the government has allocated RM21 Zafrul Abdul Aziz, who also gave a speech
ternet plans and purchases of mobile billion to upgrade broadband services during the launch today, acknowledged
smartphone devices. nationwide through the Jalinan Digital that there are improvements that need
Negara (JENDELA) plan which includes to be implemented by the government to
The subsidy is expected to benefit fibre optic plans, as well as increasing the address the digital divide in the country.
around 8.4 million people from the B40 coverage of good quality 4G by 2022.
group who are the existing recipients of “The government will continue to
the Bantuan Prihatin Rakyat (BPR), ac- “We will also accelerate the provision champion the inclusion agenda, and
cording to the Ministry of Finance. of 5G infrastructure with private invest- ensure that the country is on track for
ment through Digital Nasional Bhd’s ef- sustainable growth.To that end, the Min-
Of the RM3.5 billion, the government forts estimated at RM15 billion. God istry of Finance has begun drafting the
will spend a total of RM2 billion while willing, this effort will help reduce the 2022 Budget, and examining all matters
12 telcos and service providers namely coverage and speed gap within the next that will be focused on holistically, to
Celcom, Digi, Maxis, Mcalls, redONE, five years,” he added. ensure sustainable and inclusive growth
speakOUT, Tune Talk, U Mobile, unifi in line with the 12th Malaysia Plan and
Mobile, XOX Mobile, YES and Yoodo To combat the lack of digital skills that the Shared ProsperityVision 2030.These
will work together to provide addition- is hindering digitalisation efforts in the include in terms of digital inclusion to
al contributions amounting to RM1.5 community, Muhyiddin highlighted that bridge the digital divide of the vulnera-
billion, mainly in the form of free data. the government has come up with vari- ble and B40,” he said.
ous incentives in the Budget 2021 such
“The reality is, there are still people as SME Digitization Grant amounting Under Jaringan Prihatin, eligible re-
who have been left behind by the current to RM150 million, Industrial Digital- cipients can choose one of two benefits:
wave of digitalisation in our country.The ization Transformation Fund amount- a device package or a monthly data plan
increase in internet usage clearly shows ing to RM1 billion and High Technolo- package, for which they are entitled for
that it is time for internet access to be- gy Facilities amounting to RM1 billion, a rebate of up to RM300 for the device
come a basic need such as water and elec- among others. package and up to RM180 monthly of
tricity for every segment of the society. data plan rebate for 12 months.
On top of that, the government
“To bridge the digital divide within through the Malaysian Communications Registration for Jaringan Prihatin opens
society, there is a need to ensure that and Multimedia Commission has built today (May 5) until July 31, 2021. Eligi-
everyone has the access [to internet] at 910 Community Internet Centres (PIKs) ble recipients can register with the telco
an affordable cost as well as the skills throughout the country. PIK is a digital of their choice and join any of the plans
needed to take advantage of the internet community hall to guide the communi- recognised under the programme.
by 2030,” Muhyiddin said today during
the virtual launch of Jaringan Prihatin.

The Jaringan Prihatin programme was
announced as part of the Budget 2021
last year with an original allocation of
RM1.5 billion. The government subse-
quently added another RM500 million
allocation to the programme under the
PEMERKASA package announced last
March, raising its value to RM2 billion.
On top of that, the aforementioned 12
telcos are also offering additional ben-
efits worth RM1.5 billion, bringing the
total value to RM3.5 billion for BPR re-
cipients.

In its framework to address the digital
divide in the country, Muhyiddin said
the government is focusing on three key

THURSDAY MAY 6, 2021 5 THEEDGE CEO MORNING BRIEF

HOME

KUALA LUMPUR (May 5):As more new Supermax: profit of RM1 billion for 3QFY21, 5.2%
capacities are available in the market, rub- Rubber glove lower compared with RM1.06 billion re-
ber glove prices have started falling, said spot prices on corded in 2QFY21. Its quarter revenue fell
Supermax Corp Bhd. downtrend, 3% to RM1.94 billion in 3QFY21 com-
falling 15% to 25% pared with RM2 billion in 2QFY21.
“The glove prices have since dropped
by between 15% and 25%. Currently, the BY TAN SIEW MUNG Supermax commented its earnings
spot market prices are lower than the con- theedgemarkets.com would have been even better if not for the
tracted prices,” said the rubber glove mak- temporary shutdown of its Meru plants for
er in its quarterly results’ announcement. equipment remains strong as the world sanitisation following detection of positive
continues to fight the Covid-19 pandemic. Covid-19 cases among the foreign workers.
The group, which posted a net profit
of RM1 billion for the third quarter ended While it is widely expected that the roll- According to Supermax, the group cur-
March 31,2021 (3QFY21),said it anticipates out of Covid-19 vaccines will cause glove rently exports 58% of production under its
the competition to intensify going forward. demand and consumption to moderate, the own brands via its own distribution centres
company believes that the drop will likely and 40% through independent distributors;
There have been more new glove players be gradual due to the structural changes the remaining 2% is for original equipment
jumping on the bandwagon in view of the in consumption, such as new consump- manufacturer (OEM) production.
surge in demand. In addition, the current tion, new customers and greatly height-
players are increasing capacities in a large ened healthcare and hygiene awareness. “Due to the current robust demand, we
scale, especially players who are public-list- are taking the opportunity to build new re-
ed companies based in China, Malaysia Supermax announced a quarterly net lationships with new customers and distrib-
and Thailand, Supermax commented. utors in anticipation that they will continue
with repeat orders post pandemic,” it said.
“We are confident that our sound busi- Read also: Perak state govt jumps on
ness model and well-established distribution glove-making bandwagon,to build RM800m
networks built up since 1989 have prepared glove factory in Batu Gajah Click here
us well for all challenges ahead,” it said.

On prospects, the group said the de-
mand for gloves as personal protective

Supermax’s 3Q net profit marginally lower q-o-q at RM1b,
pays 13 sen special dividend

BY TAN SIEW MUNG Supermax’s quarterly net profit 1,059 1,005
theedgemarkets.com 789.52
(RM mil)
KUALA LUMPUR (May 5): Supermax 1200
Corp Bhd's net profit for the third quar-
ter ended March 31, 2021 (3QFY21) 800
came in at RM1 billion, which was 5.2%
lower compared with RM1.06 billion 399.62
recorded in 2QFY21. 400

The glove maker's quarterly revenue 34.62 15.06 24.75 30.17 71.06
fell 3% quarter-on-quarter (q-o-q) to 0
RM1.94 billion in 3QFY21 compared 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
with RM2 billion. FY21
FY19 FY20
Supermax, which is currently building
five plants to expand capacity, noted that Source: Bursa Malaysia
there was temporary closure at the Meru
plants to do a complete sanitisation and soared close to 23 times to RM2.85 billion, commissioned helped boost sales, in ad-
deep-cleansing exercise following the de- from RM125.97 million a year earlier. dition to the increases in average selling
tection of several Covid-19 cases among prices each month started in March 2020.
the foreign workers. Its revenue for the period surged four
times to RM5.29 billion, from RM1.2 bil- The financial performance was also
"There was loss of production output in lion a year earlier. driven by a proven business model
February at the Meru plants when work- through original brand manufacturer
ers were put into mandatory quarantine Supermax declared a special dividend of (OBM) with two streams of income via
for each batch of workers at each of the 13 sen per share.To date, the glove maker manufacturing and distribution, it said.
respective plants," said the glove maker. has declared dividends of 16.8 sen.
The group also noted it would have
On a year-on-year (y-o-y) compar- The group said the strong y-o-y earnings recorded an even stronger performance
ison, the group’s net profit surged 14 performance in 3QFY21 was underpinned were it not for the temporary closure of
times from RM71.06 million a year ago. by several factors, including the continued the Meru plants for a complete saniti-
Its quarterly revenue jumped fourfold to exponential growth in global demand for sation and deep-cleansing exercise fol-
RM1.94 billion, from RM447.25 million, medical gloves and other personal protective lowing the detection of several Covid-19
its filing with Bursa Malaysia showed. equipment due to the Covid-19 pandemic. cases among the foreign workers.

For the cumulative nine months end- The additional production capacity of the CONTINUES ON PAGE 6
ed March 31, 2021, the group’s net profit new lines at Plant #12 Block A and Block B

THURSDAY MAY 6, 2021 6 THEEDGE CEO MORNING BRIEF

HOME

US Customs Khazanah returns
seizes 4 mil to US dollar sukuk
Top Glove gloves
on forced labour market, prices
suspicions US$400m and
US$600m dual-
BY SULHI KHALID & CHONG JIN HUN after it issued a forced labour finding based tranche offering
theedgemarkets.com on evidence of multiple forced labour indi-
cators in Top Glove’s production process, BY AHMAD NAQIB IDRIS
KUALA LUMPUR (May 5): US Customs including debt bondage, excessive over- theedgemarkets.com
and Border Protection (CBP) personnel in time, abusive working and living condi-
Cleveland have seized a shipment of 3.97 tions, and retention of identity documents. KUALA LUMPUR (May 5): Khazanah
million nitrile disposable gloves made by a Nasional Bhd has returned to the US
subsidiary of Top Glove Corp Bhd worth In response to news of the seized ship- dollar sukuk market, and successfully
US$518,000 (RM2.13 million), based on ment,Top Glove issued a statement saying priced a dual-tranche offering compris-
information indicating that they were made it continues to work closely with the CBP ing a five-year US$400 million in nomi-
by forced labour. towards the expeditious resolution, revo- nal value sukuk due 2026, and a 10-year
cation and modification of the withhold US$600 million in nominal value sukuk
In a statement, the agency said the ship- release order (WRO) imposed by the reg- due 2031.
ment was seized after an inspection by CBP ulator on Top Glove’s products in the US
officers revealed that the gloves were produced amid forced labour allegations. In a statement, the sovereign wealth
in Malaysia by a subsidiary ofTop Glove. fund said the sukuk will be issued via a
Top Glove said the CBP is reviewing Labuan-incorporated special purpose
“This seizure sends a strong message Top Glove’s submission based on the com- vehicle Dua Capital Ltd.
that CBP will not tolerate imports made pany’s claim that it has remediated the 11
by forced labour, which is a form of mod- International Labour Organization’s (ILO) The sukuk, which is structured under
ern slavery that hurts vulnerable workers forced labour indicators. the Shariah principle of wakalah utilising
and threatens our economy. Shariah-compliant shares and commod-
“The company’s resolution of the 11 ILO ities, will be listed on Bursa Malaysia
“CBP continues to facilitate the im- forced labour indicators had earlier been Securities Bhd under an exempt regime
portation of legitimate personal protective verified by independent international UK and the Singapore Exchange Securities
equipment (PPE) needed for the Covid-19 consultant, Impactt Ltd, in its report dated Trading Ltd.
pandemic while ensuring that the PPE is April 22, 2021.The company estimates the
authorized and safe for use,” said Area Port impact following theWRO/finding on sales The sukuk was launched at an initial
Director-Cleveland, Diann Rodriguez. from Malaysia to be minimal until uplift- price guidance of 125 basis points (bps)
ment of theWRO/finding,” it added. over the five-year USTreasury yield, and
The seizure came after the CBP, on 150bps over the 10-year US Treasury
March 29, directed personnel at all US Top Glove shares closed 13 sen lower yield, Khazanah said.
ports of entry to begin seizing disposable today at RM5.32, giving it a market cap-
gloves produced in Malaysia byTop Glove italisation of RM42.58 billion. The transaction garnered strong de-
mand across Asia, Europe and the Middle
FROM PAGE 5 The group highlighted that it com- East, and the order book was at a high of
pleted the commissioning of the remain- approximately US$6 billion when Khaz-
“There was loss of production output ing production lines in Block B of Plant anah revised the price guidance tighter by
in the month of February 2021 at the #12 during the preceding quarter, add- 40bps and 30bps, before finally settling to
Meru plants when workers were put into ing 2.2 billion to the group’s annual in- print the sukuk at a profit rate of 1.658%
mandatory quarantine for each batch of stalled capacity. and 2.780% respectively, Khazanah said.
workers at each of the respective plants,”
it said. “We are seeing a full quarter contribu- “The overwhelming demand reflects
tion in the quarter ending March 2021 investor confidence in Khazanah’s credit
In terms of capacity expansion, Su- and going forward,” it said. and our ability to deliver the mandate as
permax said it would invest a total capi- Malaysia’s sovereign wealth fund. This
tal expenditure of RM1.39 billion for the Supermax’s shares encountered some issuance will extend our liability duration
new plants. selling pressure in today’s afternoon ses- as we continue to rebalance our portfo-
sion, pulling the stock to RM5.57, down lio,” said Khazanah chief financial officer
The new plants will add 22.25 bil- 25 sen or 4.3%, ahead of the release Faridah Bakar Ali.
lion pieces to production, bringing the of the quarterly financial results. Some
group’s total capacity to 48.42 billion 21.25 million shares were traded. Its Proceeds from the issuance are ear-
gloves by end-2022. market capitalisation stood at RM14.58 marked for general investments, refi-
billion. nancing of borrowings and working
“We are currently building five glove capital requirements of Khazanah that
manufacturing plants concurrently and Nonetheless, the stock has rebounded are Shariah-compliant, the fund said.
scheduled for completion progressively from the recent low of RM3.81.
between now and year 2022,” it said. CIMB, DBS Bank Ltd, JP Morgan,
MUFG and OCBC Bank acted as joint
lead managers and joint bookrunners,
while KFH Capital andWarba Bank also
acted as joint lead managers.

THURSDAY MAY 6, 2021 7 THEEDGE CEO MORNING BRIEF

HOME

Cahya Mata Three Seni Jaya quirement that such appointments may
Sarawak directors resign need to go through the independent direc-
over concerns tors, for good governance, surely it must
suspends CFO to about possible be approved at board level.
facilitate probe takeover exercise
into financial “We, the independent directors, have
mismanagement BY JUSTIN LIM no prior notice of the above proposed
theedgemarkets.com appointments prior to receiving the rel-
claim evant circulars requiring our signatures,”
KUALA LUMPUR (May 5): Three in- they said.
BY WONG EE LIN dependent and non-executive directors
theedgemarkets.com of Seni Jaya Bhd have resigned, following The three directors then said that the
an increase in the group’s share price and company secretary should have advised
KUALA LUMPUR (May 5): a significant disposal of shares by its two whoever gave the instruction for the new
Cahya Mata Sarawak Bhd (CMS) largest shareholders, Datin Lee Nai Yee appointments via resolutions to adhere to
today suspended its group chief fi- and Datuk Seri Anne Teo. the SOPs.
nancial officer (CFO) Syed Hizam
Alsagoff for 30 days with immedi- “This raises the immediate concern Seni Jaya is principally involved in pro-
ate effect. as to whether there is a takeover exer- viding media and production services for
cise going on without my and my fellow both indoor and outdoor advertising in
The suspension is to facilitate in- independent directors’ knowledge,” Da- Malaysia.
vestigations into allegations of possi- tuk Seri Dr Liew Lee Leong, Lim Chee
ble financial mismanagement in re- Khang and Datuk Shamsul Falak Aabdul Its shares last traded at RM1.64, valu-
lation to the company’s investments Kadir were quoted as saying in identical ing the group at RM66 million. So far this
and operations, CMS said in a filing bourse filings. year, the counter has more than doubled
with Bursa Malaysia. from 80 sen on Dec 30, 2020.
“I certainly do not feel comfortable
On April 22, CMS deputy group with this recent happening, as my fellow The group was slapped with an unusual
chairman Datuk Seri Mahmud independent directors and I are unable to market activity query by Bursa Malaysia
Abu Bekir Taib said he is seeking obtain a satisfactory explanation, despite on Feb 4, following the sharp rise in its
leave of absence from all his po- several enquiries made both verbally and share price and trading volume. Howev-
sitions in the group, as the group in writing to the two largest shareholders er, the group said it was not aware of any
launched an investigation into al- cum board directors and the company sec- reasons which may have contributed to its
legations of conflict of interest in- retary,” they said. unusual trading activity.
volving him and former CMS chief
information officer Karl Vink @ The three outgoing directors also said Lee and Teo are the company’s two
Khalid Abdullah. that the proposed appointment of an ad- largest shareholders and have been
ditional independent director, as well as selling their shares over the last two
The board of CMS had report- the CEO, was not in line with the standard months.
ed to the authorities the allega- operating procedures (SOPs), as it did not
tions of conflict of interest involv- go through the nomination and remuner- Lee had disposed of 9.84 million shares
ing Mahmud Abu Bekir and Karl ation committees. between March 25 and April 6, resulting
Vink, and said the allegations were in her shareholdings in the group falling to
received through the group’s whis- “Although there is no mandatory re- just 17.03% as at April 6, compared with
tleblower channel. 41.31% on Jan 4.

CMS’s shares closed five sen or Meanwhile, Teo’s stake in the compa-
2.4% lower at RM2.03 today, valuing ny also shrank to 14.69% from 22.22%,
the group at RM2.18 billion. Over following disposal of 3.05 million shares
the past year, the counter has risen bertween March 25 and April 6.
by 49.3% from RM1.36.
Teo is the executive chairman of Seni
Jaya and she is also the sister-in-law to
Lee, the non-independent non executive
director of the group.

THURSDAY MAY 6, 2021 8 THEEDGE CEO MORNING BRIEF

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RHB Banking the impact of the Covid-19 pandemic. IHH Healthcare
Group MD/ The technology, industrial products and partners

CEO says small- services sectors continue to dominate the Indian biotech
cap firms ahead market, thanks to the inelastic underlying company to
demand and strong investor interest amid
of the curve the prevailing low interest rate environ- provide Covaxin
despite Covid-19- ment, according to him. in India
driven economic
“Overall, the [Bursa Malaysia] small BY SULHI KHALID
backdrop cap index has been encouraging — gen- theedgemarkets.com
erating returns of 10.7% year-to-date as
BY ARJUNA CHANDRAN SHANKAR compared to the 9.9% in 2020, and we see KUALA LUMPUR (May 5): IHH
theedgemarkets.com this buoyant trend continuing,” he said. Healthcare Bhd has entered into a
partnership with Indian biotechnol-
KUALA LUMPUR (May 5): RHB Bank- At the virtual launch, RHB Banking ogy company Bharat Biotech to pro-
ing Group managing director and chief ex- Group via RHB Investment Bank unveiled vide Covaxin at its Gleneagles Global
ecutive officer Datuk Khairussaleh Ramli the group’s small cap top 20 jewels in- Hospitals in three locations in India.
said today many companies including small cluding Aemulus Holdings Bhd, KESM
market capitalisation (small-cap) ones have Industries Bhd, KKB Engineering Bhd, According to news portal The Hin-
managed to be ahead of the curve despite Spritzer Bhd, Star Media Group Bhd and du Business Line, the global healthcare
the Covid-19 pandemic-driven economic Uzma Bhd. provider has three healthcare institu-
backdrop by being in the right sectors and tions in India, namely BGS Glenea-
nimbler than larger companies. In the statement, RHB Banking Group gles Global Hospital in Kengeri, Ben-
said the 20 companies have a market cap- galuru; Gleneagles Global Health City
Khairussaleh said these factors allow italisation limit of less than US$1 billion in Chennai; and Gleneagles Global
small-cap firms “to be more adaptable (about RM4.12 billion) and that they cover Hospitals in Hyderabad.
in managing the increasingly fluid and seven different industry segments.
at times volatile business environment, “Three of the IHH Healthcare
[hence] returning positive value to in- “Selection of these jewels take into con- institutions in India will foray into
vestors”. sideration factors including the companies’ this initiative and also widen the vac-
liquidity spread and size, managements’ cination drive for the younger popu-
He was speaking today at the virtual track record, industry fundamentals, earn- lation,” the group said in an article
launch of the “RHB Small CapTop 20 Jew- ings growth potential, the long-term sus- on the news portal.
els, 2021 Edition”, which features new small- tainability of the industry and their com-
cap stock ideas for investors to consider. mitment to environmental, social, and The partnership comes after the
governance (ESG) principles. Indian government’s announcement
RHB Banking Group quoted Khairus- of a liberalised and accelerated phase
saleh as saying in a statement in conjunc- “All 20 companies featured in this year’s three strategy of Covid-19 vaccina-
tion with the launch that the past year book are outside RHB Research’s existing tion drive from May.
has seen volatile equity markets following coverage portfolio, as it seeks to uncover
even more under-researched gems. The The partnership also acts as a
median trailing P/E (price-to-earnings ra- focused approach to serve commu-
tio) and ROE (return on equity) of these nities across Bengaluru, Chennai,
2021 jewels were 21.9 times and 4.8% Hyderabad, and the rest of the cit-
with an average market capitalisation of ies within the network of hospitals.
RM437 million.
Meanwhile, IHH Healthcare In-
“The biggest sector representation in- dia CEO ShriramVijayakumar said
cludes industrial products and services, in a statement that apart from the
and consumer,” RHB Banking Group said. vaccination drive at its hospitals, the
group’s focus is also to include larger
communities through its Corporate
Vaccination Programme and camps
at residential complexes.

The healthcare group added it
will continue to provide Covid-19
vaccine to people in the age group
of 45-plus through the govern-
ment-subsidised vaccination scheme.

At the time of writing,shares of IHH
Healthcare traded three sen or 0.57%
lower at RM5.23, giving it a market
capitalisation of RM45.92 billion.

THURSDAY MAY 6, 2021 9 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 5): Malaysia Malaysia Aviation The group will also invest the bulk of
Aviation Group (MAG), parent of national Group to accept a capital injection of RM3.6 billion from
carrier Malaysia Airlines, said onTuesday its largest shareholder Khazanah Nasional
it would take delivery of Boeing 737 MAX 737 MAX jet into the airline’s growth, including its dig-
jets from 2024, though the airline group deliveries from ital business, maintenance, repair, over-
plans to retire its Airbus A380 fleet in the haul and aircraft deliveries, Izham said.
coming months. 2024
Malaysian sovereign wealth fund
The company has agreed with Boeing BY LIZ LEE Khazanah announced in February that
to take delivery of its orders from 2024, Reuters it had committed new capital to the air-
over a course of three to four years, Group line group to fund the business through
Chief Executive Captain Izham Ismail said ties worth RM15 billion, and conserved until 2025, after the airline had a court
in a virtual press briefing. RM4.2 billion through network cuts and approval for its restructuring scheme.
cost saving.
“We’re committed to take the MAX’s The group said it would look to re-
delivery in 2024, but we are also exploring The group forecasts capacity at about inforce its Asia-Pacific network through
the possibility of taking it earlier,” Izham 63% of pre-crisis level by the end of this joint business partnerships with other
said, adding that he hopes issues regard- year, Izham said, adding that it expects airlines.
ing the 737 MAX would be resolved by to break even and become cash flow-pos-
then and consumer confidence gets re- itive in 2023. “Japan is key for us.That gives us and
stored soon. reinforces the flows into Japan and we’ll
be looking to see which other airlines we
MAG was originally scheduled to take can partner with,” group Chief Strategy
delivery last July, but the 737 MAX was Officer Bryan Foong said, adding that
grounded worldwide after two crashes, European destinations will be considered
and several airlines and lessors cancelled in 2025 or later.
orders of the jet.

MAG is also exploring ways to dispose
of its Airbus SE A380 fleet, although it
has yet to present a proposal to its board.

“We are cognizant of the challenges to
sell this aeroplane, but we are still looking
at ways and means to dispose of our 380
fleet. At the moment, the management
is convinced that the 380 doesn’t fit the
future plan,” he said, referring to the Air-
bus aircraft.

The airline group is restrategising its
business to position itself as a global travel
group, becoming a “one-stop centre for
all travel needs” and expanding beyond
the airline business.

MAG expects its non-flying revenue to
accelerate by 60% to RM4 billion by 2025.

Under the debt restructuring process,
MAG said it secured savings in liabili-

KUALA LUMPUR (May 5): Fraser & F&N to keep any export, Kah said the cost increase is phe-
Neave Holdings Bhd (F&N) will keep any product price nomenal by about 200%-300% and F&N is
necessary price increase for its products hike rate within also facing a slow turnaround to fulfil orders
at a single-digit amid the rise in and raw due to the lack of containers.
material prices. single digit range,
says CEO He said Covid-19 pandemic has also af-
Chief executive officer Lim Yew Hoe fected the group’s expansion plans but that
said the products price increase would Bernama did not stop the company from further tap-
depend on products categories, as well as ping into overseas markets.
their price sensitivity. Shen Lai said in general, F&N hedged
within three, six and nine months or even F&N registered a slightly higher net profit
“On average, if we need to increase pric- up to a year, depending on the price that of RM103.5 million in the second quarter
es as a last resort, we would like to keep it the company could get and the outlook ended March 31, 2021 (2QFY21), from
to a single digit,” he told reporters at the for that particular commodity. RM102.2 million in 2QFY20, with revenue
company’s first-half financial year 2021 rising to RM1.09 billion from RM1.01 bil-
results virtual briefing today. Asked on freight price hike impact on lion, driven by domestic sales and exports
amid Covid-19-related constraints.
To-date, he said the company had not
raised the prices of its products much, as At present, exports contributed 21%
hedging measures helped the company to to group revenue and the company sees
lower cost amid the current unfavourable positive demand and exports momentum
commodities price movement. in both its Malaysia and Thailand opera-
tions, despite the pandemic.
Meanwhile, chief financial officer Kah

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Media Prima overlooked as
potential beneficiary of Disney+
Hotstar’s entry, says CGS-CIMB

KUALA LUMPUR (May 5): Media BY SYAFIQAH SALIM their TPs for Astro following Disney+
Prima Bhd has been overlooked by the theedgemarkets.com Hotstar streaming service platform deal
market as the potential beneficiary of with The Walt Disney Company.
Disney+ Hotstar’s entry into Malaysia, content cost, the group’s net profit for
according to a local research house. the financial year would appreciate by HLIB has maintained its “buy” call
circa 7.6% from our existing forecast of on Astro with a slightly higher TP of
In a note today, CGS-CIMB Research RM725.4 million. RM1.11 from RM1.10 previously.
said much of the local content that will be
added to the subscription video-on-de- “However, we believe that much of the “We are encouraged by Astro’s efforts
mand (SVOD) service’s library is pro- savings from lower international content to partner with more streaming services
duced by Media Prima’s Primeworks cost will be reinvested in Astro’s original which will provide more value to its ser-
Studios. production, especially since the group vice offerings as well as help to retain its
needs to bolster its content count to be customer base. Besides that, Astro also
“We suspect these programmes and included in its upcoming standalone pays out generous dividends, yielding
movies have been fully amortised since SVOD service,” said the analysts. 7.1%.
they are mostly dated content.Thus, most
of the amount that Disney pays to Media According to them, Disney+ Hotstar’s “We have pencilled in a slightly higher
Prima for the content should theoreti- impending arrival to Malaysia could be a ARPU as well as content cost. As a result,
cally trickle down to the latter’s bottom boon for Astro and Media Prima. our earnings forecast for FY22 and FY23
line,” said its analysts Kamarul Anwar increase marginally by 0.5% to RM512.8
and Mohd Shanaz Noor Azam. “Coincidentally, these two stocks are million and 1.0% to RM569.8 million
our top picks for the sector as they are respectively,” said the research house.
As for Astro Holdings Bhd, they note revamping their business models and cost
that it is premature to quantify how its structures after the decade of disruption Meanwhile, MIDF, which kept its
appointment as Disney+ Hotstar’s dis- in the 2010s. “buy” call on Astro, has revised its TP
tributor will affect the company’s bottom upward to RM1.17 (from 98 sen).
line as there are still a few unknowns. “Downside risks are adex [advertising
expenditure] falling further, home-shop- “We are revising our earnings fore-
“Theoretically, the surcharge for Dis- ping businesses turning red again, and casts for financial year ending Jan 31,
ney+ Hotstar’s addition should elevate efforts to combat piracy petering out,” 2022 (FY22), FY23 and FY24 upwards
Astro’s average revenue per user (ARPU); added the analysts. by 7.9%, 17.5% and 18.5% to RM639.7
assuming that 20% of its existing sub- million, RM722.3 million and RM747.4
scribers have the Movie Pack, Astro’s They had an “add” rating for both million,” said the research house.
ARPU would rise by RM1/month from counters, with a target price (TP) of
FY1/21’s RM96.90/month. RM1.51 for Astro and 88 sen for Me- It said the downside risks to its call in-
dia Prima. cludes customers opting for stand-alone
“Our FY1/22F ARPU forecast stands Disney+ Hotstar as a cheaper option,
at RM99.70/month, as we expect some MIDF, HLIB raise Astro’s TP, earnings and increase in access to pirated stream-
recovery after the initial movement con- forecasts on Disney+ deal ing sites.
trol order (MCO) rendered many sub- MIDF Research and Hong Leong Invest-
scribers unable to pay bills on time. ment Bank (HLIB) Research have raised The Disney+ Hotstar streaming plat-
form will be launched in Malaysia on
“What is currently unknown is wheth- June 1.
er Astro will reduce its subscription bill
after Disney shuts down 18 of its Asian
division’s channels come October 2021.
Eleven of those stations make up 8%
of 138 of Astro’s existing slate of TV
channels. The average revenue/channel
stands at circa RM1.30/month,” said the
analysts.

At the time of writing today, Astro had
fallen two sen or 1.89% to RM1.04, with
a market value of RM5.42 billion. Media
Prima, meanwhile, was unchanged at 54
sen, giving it a market capitalisation of
RM593.42 million.

On the bright side, CGS-CIMB’s an-
alysts said Astro should be able to enjoy
cost savings on its end when the 11 Dis-
ney-owned channels go off-air.

“Our sensitivity analysis found that for
every 5% reduction in Astro’s FY1/23F

T H U R S D A Y M A Y 6 , 2 0 2 1 11 T H E E D G E C E O M O R N I N G B R I E F

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NEWS IN BRIEF

IRB slaps two UEM Sunrise units with RM82.2m tax bill Dufu Tech 1Q net profit up 38% amid
rise in volume loading by HDD-related
KUALA LUMPUR (May 5): Two wholly-owned subsidiaries of UEM Sunrise Bhd have customers
been slapped with additional taxes and penalties amounting to RM82.18 million by the KUALA LUMPUR (May 5): Dufu Technology
Director General of Inland Revenue Board (IRB). In a filing with Bursa Malaysia today, Corp Bhd’s first quarter net profit grew 38%
UEM Sunrise said a notice of additional assessment and penalty of RM8.49 million to RM19.52 million, from RM14.14 million a
for the years 2013 to 2018 was issued to UEM Land Bhd, following the removal of year earlier, as revenue rose on the back of
Bumiputera quota and low-cost requirements at its selected developments in Iskandar an increase in volume loading by customers
Puteri. Its Symphony Hills Sdn Bhd, meanwhile, got a tax bill for RM73.69 million related to hard drives (HDD) components.
following the reversal of tax losses utilisation for the years of assessment from 2006 The higher earnings for the quarter ended
to 2017. UEM Sunrise said there are reasonable grounds to appeal and contest the March 31, 2021 (1QFY21) was also due
basis of the assessments, based on advice from its tax consultants and solicitors, and to continued improvement in production
that both subsidiaries will file a stay order on the notices and seek judicial reviews. efficiency, mainly due to economies of scale.
It also won’t make additional provision for these additional taxes and penalties, it Quarterly revenue rose 26.3% to RM79.5
said, adding it sees no significant financial and operational impact from them at this million from RM62.95 million in 1QFY20.
juncture. — by Wong Ee Lin/theedgemarkets.com On prospects, Dufu said the demand from
the HDD business remains robust with
DNeX seeks to raise RM641.96m via Prestar’s 1Q net profit surges on cloud demand leading the charge to fuel
private placement strong demand for steel products the group’s growth. “We are also positive
on the group’s non-HDD segment as the
KUALA LUMPUR (May 5): Dagang KUALA LUMPUR (May 5): Steel products semiconductor and tech hardware capital
Nexchange Bhd (DNeX) expects to raise and equipment maker Prestar Resources spending remains strong from domestic
up to RM641.96 million through its Bhd saw its net profit jump 351% to equipment exporters,” the group said. All-
proposed issuance of new placement shares RM18.33 million in its first quarter ended in-all, Dufu said it is seeing strong visibility
representing 30% of its existing number March 31, 2021 (1QFY21) from RM4.07 of orders for 2021 which should contribute
of issued shares. The proposed private million a year earlier, thanks to strong positively towards the group’s earnings.
placement is based on an indicative issue demand for its steel products. Revenue rose — by Wong Ee Lin/theedgemarkets.com
price of 72 sen per share, the information 49.6% to RM140.18 million from RM93.7
technology and trade facilitation services million in 1QFY20, its bourse filing today Kerjaya Prospek subsidiary wins
company said in a circular to shareholders showed. The group declared a first interim RM28m job in Penang
today. When DNeX first announced the dividend of one sen per share amounting to KUALA LUMPUR (May 5): Kerjaya Prospek
proposed placement on March 31, it used RM1.94 million, to be paid on a date to be Group Bhd said its wholly-owned Kerjaya
an indicative issue price of 78.6 sen per announced. In a separate statement, group Prospek (M) Sdn Bhd today accepted a letter
placement share. The company said all managing director Datuk Toh Yew Peng said of award from Eastern & Oriental Bhd’s
the proceeds, other than RM20,000 for that for the steel industry, especially the flat (E&O) indirect unit Persada Mentari Sdn Bhd
working capital and RM3,500 for estimated steel players, the post-lockdown recovery for a RM28.398 million contract involving
placement-related expenses, would be in demand from the rest of the world was construction work for a proposed serviced
used for acquisitions and/or other business stronger than expected, and this caused a apartment project comprising two 35-storey
expansion or investment. “Such proceeds global shortage and rising global steel prices. blocks at Penang’s Seri Tanjung Pinang
are expected to enable the group to retain “This resulted in Prestar experiencing higher reclaimed land. The contract shall start May
an adequate cash level and flexibility in demand for its products with better margins. 18, it said in a statement, and be completed
respect of financial allocations for its The Board expects this trend to continue for in a year. According to Kerjaya Prospek
operational requirements and short-term the remaining financial year,” he said. Group, the contract is regarded as a related-
obligations and liabilities,” it said. — Bernama — by Wong Ee Lin/theedgemarkets.com party transaction, as its executive chairman
Datuk Tee Eng Ho is also a director of E&O
Gas Malaysia 1Q net profit up 16.2% line with revenue cap adjustment recognised”, and an indirect major shareholder of E&O.
on higher volume of gas sold said Gas Malaysia. The group also blamed the “Datin Toh Siew Chuon and Mr Tee Eng Seng,
fall in profits on lower finance income and both executive directors of the company
KUALA LUMPUR (May 5): Gas Malaysia other income, coupled with a lower share (Kerjaya Prospek Group) are indirect major
Bhd’s net profit rose 16.2% to RM55.63 of profits from joint venture companies. On shareholders of E&O. Amazing Parade Sdn
million in the first quarter ended March 31, prospects, Gas Malaysia said it expects overall Bhd, a major shareholder of the company
2021 (1QFY21), from RM47.86 million a performance to remain satisfactory for FY21. (Kerjaya Prospek Group) is also a major
year ago, on higher volume of natural gas — by Wong Ee Lin/theedgemarkets.com shareholder of E&O,” Kerjaya Prospek Group
sold and higher contribution from joint said. — by Syafiqah Salim/theedgemarkets.com
ventures. Quarterly revenue, however, was
down 28.2% to RM1.15 billion, from RM1.61
billion in 1QFY20 due to lower average tariff,
its bourse filing today showed. On a quarter-
on-quarter basis, net profit fell 19.6% from
RM69.23 million, while revenue dropped
36.6% from RM1.82 billion. The lower net
profit, when compared with 4QFY20, was “in

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Appeal court stops Kenari Maluri from
intervening in Jalan Duta land dispute; company

says will escalate matter to Federal Court

BY HAFIZ YATIM & IZZUL IKRAM
theedgemarkets.com

PUTRAJAYA (May 5): After the Court of The other two judges in the unanimous According to The Edge weekly, Seman-
Appeal today ruled Kenari Maluri Sdn Bhd, decision were Datuk Has Zanah Mehat and tan Estates in 1989 sued the government
a company claiming to represent the ma- Datuk Ahmad NasfyYasin. for “trespassing” on the grounds that it had
jority of Semantan Estate (1952) Sdn Bhd taken possession of the land unlawfully.
shareholders, is not allowed to intervene in Semantan Estate was represented by Ira
Semantan Estates’ land dispute with the gov- Biswas while Ng and his father Jason Ng Although the government initially suc-
ernment, the company has indicated that it Kau appeared for Kenari Maluri. ceeded in getting the High Court to strike
will bring the matter up to the Federal Court. out the suit, Semantan Estates went all the
Senior federal counsel S Narkunavathy way to the then Supreme Court, which ruled
Kenari Maluri’s lawyer Datuk Edward appeared for all seven respondents from the in its favour and allowed the suit to proceed.
Ng Boon Siong told theedgemarkets.com government.
that it would file an application for leave to But it was close to 20 years before the
appeal to the apex court. The bench also ordered Kenari Maluri to trespassing case was finally heard and de-
pay RM10,000 in costs to Semantan Estate. cided by the High Court and on March 31,
“We have instructions to seek leave from 2010, the High Court declared that the gov-
the Federal Court to appeal against the Long-standing land dispute ernment had not taken the land lawfully and
Court of Appeal decision. Semantan Estate had named the direc- “hence has remained in unlawful possession
tor-general of the Land and Mines De- of the said land”.
“Failure to intervene [in] the judi- partment, the registrar ownership of Fed-
cial review proceeding does not affect eral Territory, Kuala Lumpur, the Federal The High Court also ordered the govern-
the mandate granted by the majority Land Commissioner, the minister in charge ment to pay “mesne profits” as damages to
shareholders of Semantan Estate to Ke- of the FederalTerritory, the Energy, Natural Semantan Estates and that the Registrar of
nara Maluri Sdn Bhd in relation to any Resources and Environment Ministry, the the High Court assess the amount, accord-
out-of-court settlement negotiation with Malaysian government and the Federal Land ing to the report.
the Government of Malaysia,” he told and Mines Department director-general as
theedgemarkets.com. respondents.The land dispute with the gov- It was reported that “mesne profits” re-
ernment dates back to 1960. ferred to any profit accrued during a dispute
Earlier, a three-member appellate court over land ownership.
bench led by Datuk Seri Kamaludin Md The Edge Malaysia weekly’s July 1-7, 2013
Said unanimously allowed Semantan Es- edition reported that in 1960, the govern- The attorney-general, who represented
tate’s appeal to remove Kenari Maluri from ment paid RM1.3 million to acquire the dis- the government, appealed the High Court’s
intervening in the long-standing dispute over puted land under the then Land Acquisition decision but lost in the Court of Appeal in
106.7ha of prime land in the diplomatic en- Enactment for the purpose of developing a May 2012, and finally, the highest court in
clave which is now known as Jalan Duta, in diplomatic enclave. the land — the Federal Court — upheld the
Kuala Lumpur. High Court’s decision in November 2012.
It was reported that the tussle between
On July 8, 2019, the KL High Court had Semantan Estate and the government Subsequent news reports indicated that
allowed Kenari Maluri’s application to in- dragged on for more than 50 years for a on Nov 22, 2018, the Federal Court, led by
tervene and classified the company as the number of reasons, including issues between Court of Appeal President Tan Sri Ahmad
eighth respondent which led to this appeal the two families that started Semantan Es- Maarop, dismissed the Malaysian govern-
by Semantan Estate. tate and mistakes and delays caused by the ment’s application to review the November
Collector of Land Revenue. 2012 decision.
However, the appellate court overturned
the High Court’s decision, ruling that Kenari It was reported that Semantan Estate first Semantan Estates filed the judicial re-
Maluri is a stranger to the existing judge- went to court in 1960 to seek legal remedy view application after the 2018 apex court
ment and not a proper party to be heard or for the then RM1.3 million compensation decision because it wanted the ownership of
allowed to intervene. that the Collector of Land Revenue had paid the disputed 106.7ha land along Jalan Duta
for the land. in Kuala Lumpur to be officially transferred
“So we agree with the appellant (Seman- to the company.
tan Estate) that Kenari Maluri has no direct
interest and no legal relationship in this dis-
pute. Hence, it has no right to interfere in
the appellant’s negotiation of settlement and
seek to intervene even if they say it represents
the shareholders.

“We say Kenari Maluri has no right of
authority to enforce the judgement and is
not appointed to negotiate. We allow the
appeal by Semantan Estate and the order
of the High Court is set aside,” Justice Ka-
maludin said.

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KUALA LUMPUR (May 5): The High Another Jho Low The Government, acting as plaintiff, is
court ordered Casey Tang (Tang Keng associate ordered also seeking RM2.4 million from Jasmine
Chee), an associate of 1MDB mastermind Loo for taxes due for a seven-year period
and fugitive Low Taek Jho, better known to pay RM6.7 between 2012 and 2018.
as Jho Low, to pay more than RM6.7 mil- million in tax
lion in tax arrears from between 2009 and Tang’s role in 1MDB
2017 to the Malaysian government follow- arrears Tang acted as a former director of 1MDB.
ing legal action againstTang by the Inland According to the witness testimony of for-
Revenue Board (IRB). BY TIMOTHY ACHARIAM mer 1MDB CEO Datuk Shahrol Azral
theedgemarkets.com Ibrahim Halmi in the 1MDB-Tanore tri-
According to the judgment sighted by al, Tang advised him to sign a purported
The Edge,Tang was ordered to pay RM6.77 ment against Jho Low’s associates. joint-venture agreement between 1MDB
million in taxes inclusive of annual interest. The High court yesterday ordered Eric and an imposter JV company PetroSaudi
He was also ordered to pay RM2,000 in cost. Holdings (Cayman) Ltd, to form 1MDB
Tan Kim Loong, who is also known as “Fat Petrosaudi Ltd.
The High court on April 20 had allowed Eric”, to pay almost RM68 million in tax
an application from IRB lawyers for a judg- arrears from 2010 to 2013. Tang, 54, is described as “1MDB of-
ment in default of appearance. This was ficer 1” in the DoJ document, who played
done because Tang — like other Jho Low a role in misleading banks in the transfer
associates — has been at large since 2018 of US$700 million to Good Star Ltd, a
and did not put in any legal representation. company controlled by Low.

As a result of Tang’s absence, the High
court issued a certificate of non-appear-
ance before it meted out the judgment
against him.

High Court Deputy Registrar Maslin-
da Selamat, who meted out the judgment
in default on April 21, also ordered Tang
to pay 5% interest a year starting today
for every year he does not pay the RM6.7
million in tax arrears to the government.

Under the law, a judgment in default
of appearance or representation is when
a defendant fails to appear in court and
fails to send legal representation despite
being served with court orders.

The certificate of non-appearance,
which was also sighted by The Edge, re-
vealed that a notice to appear in court was
stuck at his registered address in Taman
Sri Endah here, on March 17 this year.
The lawyers had also advertised this in a
local newspaper on March 16 this year.

This adds Tang’s case to the number
of tax orders obtained by the Govern-

KUALA LUMPUR (May 5): The High Court fixes case misguided. He also said this goes against
Court here has fixed May 24 for case man- management for the clear rules which govern bankruptcy
agement of the Inland Revenue Board’s IRB’s bankruptcy proceedings.
(IRB) bankruptcy claim against former
premier Datuk Seri Najib Razak. claim against Justice Ida agreed that no act of bank-
Najib on May 24 ruptcy has occurred at this stage as var-
The court also ruled that no act of as he applies to ious applications and affidavits had to
bankruptcy has occurred yet, which means stay proceedings be filed by both parties. She set May 24
that Najib is not yet a bankrupt. for the parties to update on the status of
BY TIMOTHY ACHARIAM these filings.
Last month, the IRB had sent a bank- theedgemarkets.com
ruptcy notice to Najib for failing to pay tax Najib is filing several applications in the
arrears in the region of RM1.69 billion. case, one of which is an application to stay
the proceedings and another to set aside
During an e-review of the bankrupt- the bankruptcy notice on the grounds of
cy proceedings before Justice Ida Rahayu abuse of process.
Sharif today, IRB’s counsel Athari Faris
Ammerry Hussien argued that a bankrupt- Court documents sighted by theedge-
cy event has occurred and compelled the markets.com showed that a bankruptcy no-
court to record the said act of bankruptcy tice was issued by the High Court to the
immediately. former prime minister on Feb 4, following
a request by the IRB on the same date.
Najib’s counsel Wee Yeong Kang then
argued that IRB’s position is incorrect and CONTINUES ON PAGE 14

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KUALA LUMPUR (May 5): What was Court fixes lenge the Syariah High Court’s decision
meant to be an ex-parte hearing for leave May 31 to hear to grant leave to SM Faisal to initiate the
to seek a judicial review of the contempt Maria Chin’s bid for proceedings.
proceedings against Petaling Jaya MP Ma- judicial review of
ria Chin Abdullah by the Syariah Court Syariah contempt Lawyers Rosli Dahlan, Dayana Najwa,
turned out to be a hotly-contested affair charge, SM Faisal’s Amiratu Al Amirat, and Zeti Zulfah ap-
at the High Court. application to peared for Maria.

Naza Group executive chairman Datuk intervene Challenge filed last month
Wira SM Faisal Nasimuddin’s legal rep- Maria filed the judicial review applica-
resentatives Datuk Akberdin Abdul Kad- BY HAFIZ YATIM tion on March 3 through Messrs Nurul
er and Dr Mohd Rafie Mohd Shafie had theedgemarkets.com Hafidzah and Associates, contending
sought to intervene in the lawmaker’s ap- that the Syariah Court had wrongly used
plication on the grounds the civil court is She responded by challenging the the civil laws to allow SM Faisal to ini-
not the proper forum. process taken against her, calling it tiate the contempt proceeding whereas
wrongful. the Syariah Criminal Procedure (Feder-
The Attorney-General’s Chambers’ sen- al Territories) Act 1998 does not allow
ior federal counsels Ahmad Hanir Ham- It was reported last December that com- such an action.
baly and Mazlifah Ayob — who appeared mittal proceedings against the Petaling Jaya
for Minister in the Prime Minister’s De- MP are to proceed after a three-member The federal lawmaker also claimed she
partment Datuk Dr Zulkifli Mohamad Al Syariah Court of Appeal dismissed her was refused recourse by the Syariah Court
Bakri, the Department of Syariah Judiciary appeal for an extension of time to chal- at every level to address the improper pro-
Malaysia and the FederalTerritory Islamic cess of the contempt, and that her Syariah
Council (MAIWP), which were named as counsel, Rosli, was also threatened with
respondents in the judicial review appli- contempt proceeding just for defending
cation — also objected. her.

As a result, High Court Justice Datuk She further alleged that her complaints
Noorin Badaruddin fixed May 31 to hear to Zulkefli and to the director-general of
the intervener application and Maria’s ap- the Department of Syariah Judiciary Ma-
plication for leave, and ordered the par- laysia that also housed the Chief Justice
ties to file their written submissions be- Syarie of FederalTerritories to correct the
forehand. mistakes were also ignored.

In judicial review proceedings, sub- Rosli told reporters outside court that
stantive arguments or merit are not auto- in recent years, the Syariah Court has been
matically heard first as leave (permission) brought into the spotlight due to abuse
has to be granted by the courts to ensure of processes and jurisdictional issues like
that the applications are not frivolous and Borders bookstore manager Nik Raina Nik
vexatious. Abdul Aziz being charged with the sale of
Irsyad Manji’s controversial book “Allah
The contempt proceeding was initiated Liberty and Love”.
against Maria following her statement on
the divorce proceeding between SM Faisal She had managed to quash the charge
and his former wife Datin Emilia Hanafi on the grounds that the book was not
that began in 2016. SM Faisal obtained a banned then.
committal against Emilia which resulted
in her being imprisoned for seven days He also cited the wrongful prose-
over a custodial dispute. cution of the late literarist Kassim Ah-
mad, who was arrested in Kedah and
Maria, who is an MP and civil rights ac- brought to KL to be charged, where the
tivist, issued a statement and called on the wrongful prosecution was again chal-
authorities to correct the injustices against lenged in the civil courts and the acad-
women.The businessman then through his emician won.
lawyers moved to initiate contempt pro-
ceedings against her. In both those cases, Rosli appeared for
Nik Raina and Kassim.

FROM PAGE 13 of Parliament, in accordance with Article The notice came while Najib and his
48 of the Federal Constitution. He cur- two children, Datuk Mohd Nizar Najib
The request was filed seven months rently holds the seat for the Pekan constit- and Datuk Mohd Nazifuddin Najib, are
after the High Court’s decision to issue uency in Pahang. appealing against the High Court’s sum-
a summary judgement ordering Najib to mary judgements for IRB to recover from
make the payment for RM1.69 billion IRB filed the claim against Najib in them a combined RM1.74 billion in in-
claimed by the IRB.That amount rose to 2019, after the tax authority concluded come tax arrears from 2011 to 2017.
RM1.74 billion for Najib alone, according that the former premier did not declare
to the latest court documents, following taxable incomes of almost RM4 billion for Najib and his two children’s appeal will
the 5% annual interest imposed, in ad- the period — including the RM2.6 billion be heard in the Court of Appeal on June
dition to RM15,000 in costs awarded to which went into his personal bank account 16, 2021.
IRB at the time. and which he consistently claimed was a
personal donation from a member of the His daughter, Nooryana Najwa Najib,
A bankruptcy declaration, if approved, Saudi royal family. will also likely go to trial to contest IRB’s
will disqualify Najib from being a member claim of RM10.3 million in unpaid taxes.

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(May 5):With the world in the midst of a Cheap bets on Still, each contract cost 30 cents a
commodities boom, some in the oil market US$100 oil in barrel, making the total cost of the trade
are gearing up for US$100-a-barrel crude. vogue as traders about US$1.4 million. The calls would
profit a buyer if prices rallied toward or
Traders now hold options to buy the eye bullish hit the specified level.
equivalent of almost 20 million barrels of summer
US$100 oil over three key months, their There was additional trading of
open interest nearly doubling in the past BY ALEX LONGLEY US$100 calls on Wednesday, this time
week. theedgemarkets.com as part of a strategy that involves buying
US$90 calls and selling US$100 calls.
While a rally back to triple digits is far On Monday, Brent Those contracts had changed hands
from the consensus view, and the deriv- December US$100 6,300 times as of 7:15am in New York.
atives remain a hedge against a spike in calls traded 4,600
prices, they’re also a reminder that few times, more than any The global benchmark — which last
expect the rally in crude to peter out an- other option on the touched US$100 in September 2014 —
ytime soon. global benchmark. is up more than 30% so far this year,
and is trading near US$70 a barrel as
“Some have likened them to ‘lottery the global economy gradually recovers
tickets’,” brokerage Eagle Commodities from the pandemic.
said in a note to clients. “Cheap, unlike-
ly to be in the money, but worth having Much of Wall Street is betting that
should a bullish wave take over in the com- crude will continue to strengthen over
ing months.” the summer, as travel picks up with the
roll-out of vaccination programs.
On Monday, Brent December US$100
calls traded 4,600 times, more than any Among those with bullish calls are
other option on the global benchmark. Goldman Sachs Group Inc, which
sees oil reaching US$80 in the third
quarter and Citigroup Inc, which
says demand may hit a record in the
summer.

While most of the US$100 calls are
for December this year, June 2022 and
December next year, there are plenty of
other bullish oil options bets out there.
The most-held Brent contracts over the
next 12 months combined are US$75
and US$80 calls, according to data com-
piled by Bloomberg.

Read also: Bahrain may follow Gulf states
by selling oil, pipeline assets Click here

COPENHAGEN (May 5): Maersk said Shipping group at ports, container shortages, and contin-
onWednesday it expects an “exceptionally Maersk expects ued delays at the Suez Canal were causing
strong” performance in the first quarter to high demand, problems getting products made in Asia
continue for the rest of the year, driven by bottlenecks to last to key markets.
high demand for shipping containers from until end-2021
China to the United States. “The pandemic continues to impact the
BY JACOB GRONHOLT-PEDERSEN industry with a temporary economic up-
“Strong demand led to bottlenecks as Reuters side coupled with significant operational
well as lack of capacity and equipment challenges,” Skou said.
which drove up freight rates to record high BLOOMBERG
levels,” chief executive Soren Skou said in Maersk, the world’s biggest contain-
a statement. er shipping line, confirmed the 30% rise
in first-quarter revenue announced in a
Those factors prompted Maersk last preliminary trading statement last week
week to raise its outlook for full-year un- and reiterated its upbeat profit outlook
derlying earnings before interest, taxes, de- for 2021.
preciation, and amortisation (EBITDA) to
US$13 billion-US$15 billion from US$8.5 The company said EBITDA more than
billion-US$10.5 billion. doubled in the period to US$4 billion, in
line with preliminary numbers published
It also lifted its forecast for global con- last week.
tainer demand growth to 5%-7% from
3%-5%. Maersk also said high free cash flow
had prompted it to speed up an exist-
“We now expect the current dynamics ing US$1.6 billion share buy-back pro-
to last into the fourth quarter,” Skou said. gramme and launch a new US$5 billion
share buy-back programme that will con-
Large retailers and producers, including clude in 2023.
Puma and Signify, have said congestion

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(May 5):The International Monetary Fund IMF warns of foreign income could pressure many coun-
called on nations to agree on global rules risk of eventual tries to raise their current rate. It has given
for corporate-income taxation to avoid an trade war without fresh impetus to a years-long effort led by
eventual scenario where conflicts between global tax deal the OECD to counter corporate strate-
countries make all of them worse off. gies to avoid paying tax by taking advan-
BY ERIC MARTIN tage of disparities between nations. Rep-
A multilateral agreement on taxes, like Bloomberg resentatives leading the negotiations said
the solutions proposed by the US, is the last month they can see an agreement by
sole way to ensure that highly profitable conflicts, Georgieva said. mid-summer.
multinational firms pay sufficient tax in “We are particularly optimistic for a
the places where they do business, includ-
ing low-income countries, IMF Manag- global agreement on corporate income
ing Director Kristalina Georgieva said on taxation in 2021,” Georgieva said. “And
Tuesday. it is urgently needed to avoid, down the
road, the risk of spiralling into a chaotic
The crises of Covid-19 and climate tax or trade war where everyone loses.”
change present the world with an oppor-
tunity to rethink and fix the internation- President Joe Biden’s plan to push for
al tax system, Georgieva said in remarks a 21% minimum levy for US companies’
prepared for a virtual book launch. The
IMF supports the Inclusive Framework
on Base Erosion and Profit Shifting at the
Organization for Economic Cooperation
and Development as a way to avoid tax

Thailand plans reopening the borders to tourists. UK new car sales
US$7.2 billion Thailand’s total Covid-19 caseload rise over 3,000%
from last year’s
stimulus to and fatalities have more than doubled
rescue virus-hit since early April, triggering several con- lockdown low
trol measures on businesses and travel.
economy BY COSTAS PITAS
“The government will implement the Reuters
BY SUTTINEE YUVEJWATTANA second-phase measures once the out-
Bloomberg break is contained possibly during Ju- LONDON (May 5): British new car sales
ly-December,” Prayuth said. “We expect rose by more than 3,000% in April as the re-
(May 5): Thailand is planning to spend these measures will cover 51 million peo- opening of dealerships to the public in Eng-
billions of dollars in providing financial ple and generate 473 billion baht in the land helped boost figures compared with the
relief to low-income groups to cope with economy.” same time last year when the first lockdown
the economic hit from the biggest Cov- almost completely wiped out volumes.
id-19 outbreak sweeping the nation since Others key measures cleared at
the pandemic began. Wednesday’s Cabinet meeting include: Registrations stood at 141,583 vehicles,
• Cuts in electricity and water charges according to the Society of Motor Manu-
The Cabinet gave in-principle ap- facturers and Traders (SMMT), up from
proval on Wednesday for fiscal stimulus for most users during May and June just 4,321 in April 2020, the lowest level of
measures including extension of two cash • Approves 20 billion baht low-interest any month since February 1946 as plants
handout programs by a month at a cost of and showrooms shut due to the Covid-19
85.5 billion baht (US$2.8 billion). rate loans from state-owned banks pandemic.
• State-owned banks to extend grace
It also proposed 140 billion baht worth Dealerships reopened to the public from
of spending for co-payment and e-vouch- period for principal re- payment till April 12 in England while delivery, click and
er programs and more cash handouts to year-end collect, and online services also facilitated
welfare cardholders and special groups • Approves 12.6 billion baht budget for purchases. Plants have continued to oper-
to stimulate domestic consumption, of- the Health Ministry to handle the third ate with Covid-19-safe measures in place.
ficials said. wave of infections
• Extends tax incentives for companies But last month’s performance was still
The measures will be taken up by the hiring former prisoners for a year until 13% below the 2010-2019 average, the
Cabinet for approval in coming weeks, end-2021 SMMT said.
according to Prime Minister Prayuth
Chan-Ocha. “After one of the darkest years in auto-
motive history, there is light at the end of
The Bank of Thailand on Wednesday the tunnel,” said SMMT boss Mike Hawes.
unanimously voted to maintain interest
rate at record low to support an eco- “A full recovery for the sector is still some
nomic recovery that’s threatened by the way off, but with showrooms open and con-
slow pace of vaccinations and a delay in sumers able to test drive the latest, cleanest
models, the industry can begin to rebuild.”

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Inflation risk intensifies with supply
shortages multiplying

(May 5): Signs of inflation are picking up, BY MICHELLE JAMRISKO rector and chief economist at Singapore’s cen-
with a mounting number of consumer-fac- Bloomberg tral bank, said in a speech last week that he’s
ing companies warning in recent days that watching Chinese producer prices closely as
supply shortages and logistical logjams may Monday that they see US consumer-price in- an “important upside risk” to his baseline call
force them to raise prices. creases averaging just under 3% from 2025- that inflation should stay in check, helped by
2030, though that pace is “still under-priced labour-market slack.
Tight inventories of materials as varied as by markets.”
semiconductors, steel, lumber and cotton are A surge in copper is crippling some Chi-
showing up in survey data, with manufactur- The case for higher-for-longer inflation into nese manufacturers, who have idled units, de-
ers in Europe and the US this week flagging 2022 often rests on the trillions of dollars being layed deliveries and even defaulted on bank
record backlogs and higher input prices as pumped into infrastructure projects globally loans, data from a Shanghai Metals Market
theyscramble to replenish stockpiles and keep in a low-interest rate atmosphere, most nota- survey show.
up with accelerating consumer demand. bly in the US.That has supercharged a rally
across raw materials, as major economies re- That’s already rippled through the produc-
As commodities become increasingly ex- cover from the pandemic amid growing signs tion chain, delaying projects by power grids
pensive, whether faster inflation proves tran- of shortage across several markets. and property developers.
sitory — or not — is the biggest question for
policy makers and markets. Some businesses have found they can’t af- Lumber has been in the spotlight as red-
ford to wait for “temporary” increases to pass. hot housing markets, especially in advanced
Rising prices and the potential for a re- That means consumers can expect to deal economies, are driving up costs for the com-
sponse from central banks topped the list of with higher costs for a range of daily items, modity.
concerns for money managers surveyed by including garbage bags and children’s clothes.
Bank of America Corp. Fed Chairman Jerome Powell said last
“Straight price increases will continue to week the central bank was watching that
Many economists and central bankers, be an important element as we look at the market closely, even though he doesn’t cur-
from the Federal Reserve on down, main- back half of the year,” Colgate-Palmolive Chief rently have financial stability concerns around
tain that price gains are temporary and will Executive Officer Noel Wallace said late last housing.
be curbed by forces such as virus worries and month when the company announced earn-
unemployment. ings. “I anticipate that you’ll see more price Still, the sector has been emblematic of the
increases across the sector, given the head- K-shaped recovery, with cost surges pricing
Investors remain skeptical, with businesses winds that everyone has faced in this space.” out middle-income buyers while homeown-
including Nestle SA and Colgate-Palmolive ers reap gains.
Co already announcing they’ll need to raise Higher cotton prices from Chinese pro-
prices. ducers are pushing clothes-maker Carter’s Markets have responded more calmly of
Inc. to consider how much of the increase it late to the Fed’s mantra, with bond yields
USTreasury Secretary JanetYellen, a for- can pass along. little changed after Powell last week doubled
mer Fed chair, entered the debate onTuesday down on his inflation read and still-easy pol-
when she ruffled markets with the observa- “We’re beginning to see signs of inflation in icy stance.
tion that rates will likely rise as government product input costs, particularly those related
spending ramps up. She later clarified she to fabric,” Chief Executive Officer Michael The inflation run across so many materials,
was neither predicting nor recommending Casey said on an April 30 earnings call.The though, could break that patience, as pressure
an increase. company will offer “fewer promotions” this builds on businesses and officials to ward off
year, he said, amid a return of resilient shop- price increases for consumers.
The Bloomberg Commodity Spot Index, pers buoyed by stimulus payments.
which tracks 23 raw materials, has risen to “One always has to be careful not to over-
its highest level in almost a decade. Corn, too, is on the growing list of com- play a few anecdotes, and project that onto
modities seeing price boosts. Futures surged the broader economy,” Douglas Porter, chief
That has pushed a gauge of global man- this week above US$7 a bushel for the first economist at BMO Capital Markets, said in
ufacturing output prices to its highest point time in more than eight years on the Chicago a May 1 report. “But as the anecdotes accu-
since 2009, and US producer prices to level Board of Trade, alongside increases for soy- mulate, they eventually become data.”
not seen since 2008, according to data from beans and wheat.
JPMorgan Chase & Co and IHS Markit. JP- Porter pointed to a sampling of 10 recent
Morgan analysts also estimate non-food and The underlying materials shortage has datasets, including US employment costs, Ca-
energy import prices in the biggest economies spooked Greg Sharenow, who manages a nadian wages and still-soaring shipping costs.
rose almost 4% in the first quarter, the most portfolio focused on energy and commod-
in three years. ities at Pacific Investment Management Co. “As rising inflation risks suggest,” he said,
“when you run things hot, you risk getting
“Risk clearly leans to the upside in the cur- The premium on near-term deliveries over burned.”
rent environment,” said John Mothersole, pric- future deliveries for commodities tracked by
ing and purchasing research director at IHS the Bloomberg Commodity Index has jumped Read also:
Markit.“The surge in commodity prices over to the highest in more than 15 years, signaling Commodities jump to highest since 2011
the past year now guarantees higher goods- immediate physical shortages across different on rebound from virus
price inflation this summer.” markets, Sharenow said. He sees the price “A rebound in the world’s largest economies
surge this time as more organic, rather than stokes demand for metals, food and energy,
The IHS Markit analysis across oil, chem- the kind of anticipatory demand seen from while poor weather harms crops and
icals, steel, copper, zinc, lumber, pulp and 2005 to 2008. transportation bottlenecks curb supplies.”
rubber expects the price boosts to fade clos- Click here
er to the end of the year. Meanwhile, strate- Edward Robinson, deputy managing di-
gists at Blackrock Investment Institute wrote

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(May 5): UBS Group AG’s Chairman Axel UBS’sWeber subject to any regulator enforcements or
Weber apologized for the loss the Swiss apologizes actions. Swiss rival Credit Suisse Group
bank posted on its exposure to the col- for Archegos AG is under scrutiny by Swiss regulator
lapse of Archegos Capital Management loss, urges Finma, which opened enforcement pro-
while also blaming a lack of regulation and ceedings at the bank after it announced a
transparency regarding family offices op- transparency $5.5 billion hit related to Archegos.
erating in financial markets.
BY MARION HALFTERMEYER Future office
Switzerland’s largest bank announced a & FRANCINE LACQUA The bulk of UBS employees are still work-
surprise hit of US$861 million last month Bloomberg ing from home globally, with about 20% in
related to Bill Hwang’s family office.Weber critical functions who’ve remained at the
called Archegos a very “unusual situation” “We think what went office throughout the Covid-19 pandemic,
and said he was “deeply sorry that it hap- wrong was various according to Weber.
pened” during an interview with Bloomb- failures interacted
erg TV’s Francine Lacqua on Wednesday. as opposed to a But when the virus subsides, UBS plans
specific point where to offer case-by- case flexibility to its em-
Weber said the “usual suspects” of you can point the ployees,Weber said.
concentration risk and high leverage finger,” Weber said.
were present in the Archegos situation “We see very little need to be in a race
and though banks have a lot of informa- specific point where you can point the to get back to office,” he said. The new
tion when it comes to some parts of the finger,”Weber said, adding that there was normal will see a greater degree of peo-
markets, others such as family offices were no single person who was solely to blame ple in the office but there will be no hard-
deeply lacking in transparency and reg- for the incident and the bank was focusing and-fast rule.
ulation. on improving processes that were lacking.
Weber said he expects critical roles, and
If transparency is not enforced by reg- The loss has triggered an internal inves- procedures related to trading and controls,
ulators UBS will enforce it for its own cli- tigation at UBS but the bank is so far not to likely remain in the office, adding that
ents. “If we finance activity, we want these high-risk areas need to be monitored in
disclosures and if clients are unwilling to person on the floor or in a similar manner.
give that, well there may be other banks
that give them that same exposure, but it The biggest changes will be seen in
won’t be us,” Weber said. Still, the bank back-office functions which are more eas-
is not in the business of avoiding risk, but ily done from a remote location.
rather seeks to manage it, according to
Weber. While Weber said he expects front-of-
fice roles such as advising clients to return
“We think what went wrong was var- to the office, he also said that interactions
ious failures interacted as opposed to a with wealth management clients were be-
coming more digital in a permanent way.

SYDNEY (May 5): Australia’s corporate Australian Seven Westpac employees and former
watchdog accusedWestpac Banking Corp regulator accuses employees were named in the ASIC law-
of insider trading while financing a A$16 Westpac of insider suit but do not face prison time since it
billion (US$12 billion) energy grid pri- trading in US$12 is a civil case only.
vatisation in 2016, the latest in a series billion grid sale
of regulatory problems for the country’s A Westpac spokesman declined to
No 2 lender. BY BYRON KAYE comment beyond a company statement
Reuters which said the bank was considering its
The Australian Securities and Invest- position and took the allegations “very
ments Commission (ASIC) said West- It also underscores the increased de- seriously”.
pac knew it had won the contract to help termination of Australia’s financial regu-
two pension funds buy Ausgrid, a state- lators to take on big cases after they were Westpac shares initially traded higher
owned power supplier to millions of peo- accused in a 2018 public inquiry of being on Wednesday as analysts upgraded their
ple around Sydney, for two hours while it too cosy with the sector. forecasts following its result the previous
bought A$12 billion of derivative products day, but the stock gave up most of its
to support the deal. “With everything Westpac’s been gains to be flat by mid-afternoon, just
through in the last few years, and they’ve behind the broader market.
“The Ausgrid information was not increased regulatory compliance spend
generally available and it was information enormously, there’s a lower probability that The two pension funds whichWestpac
which, if generally available, a reasonable they’re going to occur in the future,” said helped buy Ausgrid for a total of A$16
person would expect to have a material Morningstar banking analyst Nathan Zaia. billion, AustralianSuper and IFM, de-
effect on the price or value of the traded clined to comment.
products,” ASIC said in a civil lawsuit filed “If ASIC wins the case they’ll face a
on Wednesday. penalty. How large that will be will be an- A representative of New South Wales
yone’s guess.” state premier Gladys Berejiklian, who was
The lawsuit casts a fresh cloud over state treasurer at the time of the priva-
Westpac one day after it posted a tripling tisation deal in 2016, also declined to
of first-half profit largely due to penalties it comment.
paid in the prior period to settle an unrelat-
ed regulator lawsuit accusing it of enabling In a previous ASIC action, a court
millions of offshore payments, including to ordered Westpac to pay A$3.3 million
purveyors of child exploitation material. in 2018 for its involvement in fraudu-
lent setting of interbank lending rates
in 2010.

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(May 5): General Motors Co onWednes- GM profit shrugs Stellantis, created from the merger of
day posted far stronger-than-expected off chip shortage PSA and Fiat Chrysler, onWednesday said
first-quarter profit despite a global semi- with high-priced it expects the shortage to take a bigger
conductor chip shortage, as it held down pickups, SUVs bite out of second-quarter production and
costs and focused on high-margin pickup warned the disruption could last into 2022.
trucks and SUVs. BY NICK CAREY & BEN KLAYMAN
Reuters Ford said last week that it expects sec-
The Detroit automaker, whose shares ond-quarter vehicle output to be halved
were up 3.3% in early trading, also said REUTERS by the shortage.
its full-year pre-tax profit would come in
at the high end of its forecast. previously forecast. Morgan Stanley an- Evercore ISI analyst Chris McNally
alyst Adam Jonas said GM’s profit and asked in a research note as to why Ford
“The speed and agility of our team are full-year forecast were a relief, after Ford was potentially expecting a bigger sec-
front and centre, as we move from man- Motor Co’s warning last week about the ond-quarter production hit than GM,
aging through a pandemic to managing expected chip hit. which he joked stood for “Good Morn-
the global semiconductor shortage,” Chief ing” after the strong results.
Executive Mary Barra said in a letter to GM stuck to earlier forecasts the chip
shareholders. “This remains a challeng- shortage could shave US$1.5 billion to Thanks to high consumer demand that
ing period.” US$2 billion from this year’s profits. has pushed up prices, focusing on those
high-margin models contributed US$3.2
Barra added the No. 1 US automaker Carmakers across the world have had billion to GM’s first-quarter pre-tax profit.
is focused on “maximising production of to curb output, hampering their attempts
high-demand and capacity-constrained to recover from the Covid-19 pandemic, While GM has continued to build its
vehicles” like the full-sized Chevrolet Sil- due to a shortage of vital chips used in highest-profit vehicles, it has hoarded sup-
verado pickup, and GMC Yukon, Chevy everything from computer management plies of chips by idling other factories. Last
Suburban and Cadillac Escalade SUVs. of engines to driver assistance systems. week, it extended downtime for plants in
Kansas and Ontario into early July and late
Barra told reporters that the chip short- June respectively, curtailing output of the
age will worsen in the second quarter, be- Cadillac XT4 and Chevy Equinox SUVs,
fore improving in the second half of the and the Chevy Malibu sedan.
year.
GM posted a first-quarter net profit of
“Every region in the world has been US$3 billion or US$2.03 per share, up
dealing with the supply and demand im- from US$294 million or 17 cents per share
balance for semiconductors, and we have a year earlier. Excluding items, it earned
been working through some significant dis- US$2.25 per share, well above analyst ex-
ruptions to production,” she said. pectations of US$1.04.

GM reiterated its full-year 2021 earn- GM said its capital spending budget
ings guidance and said “based on what this year will be US$9 billion to US$10
we know today”, its results will be at the billion, and Barra said about US$7 billion
upper end of the US$10 billion to US$11 of that would be focused on electric and
billion adjusted pre-tax profit which it has autonomous vehicle development.

PARIS/DETROIT (May 5): Tesla Inc is Tesla losing The company will consider partnering in
about to lose one source of the regulato- source of credit the future withTesla, if necessary, in other
ry-credit revenue that’s been crucial to its revenue that’s regions in order to achieve the lowest cost
almost two-year run of consecutive quar- of compliance.
terly profits. been key to
profits Fiat Chrysler first announced cred-
Stellantis NV, the automaker formed it-purchasing agreements with Tesla in
through the merger of PSA Group and BY TARA PATEL & GABRIELLE COPPOLA May 2019, saying then that it would cost
Fiat Chrysler, announced on Wednes- Bloomberg the company 1.8 billion euros over three
day that it is exiting a European emis- years.The company is now paired up with
sions-credit agreement with Tesla. Com- the US. The revenue goes straight to the PSA’s lineup of plug-in hybrid and fully
plying with standards on its own will save electric-car maker’s bottom line and has electric models, which will continue to ex-
the company about 300 million euros routinely exceeded net income on a gen- pand this year. It has scheduled an EV-re-
(US$360 million), roughly two-thirds of erally accepted accounting principles, or lated investor day for July 8.
which would have gone to Tesla, Chief GAAP, basis. Without the credit sales in
Financial Officer Richard Palmer said. recent quarters, the company would have Stellantis shares rose as much as 5.9%
recorded losses. in NewYork trading, whileTesla advanced
“Stellantis will be in a position to as much as 1.7%.
achieve CO2 targets in Europe for 2021 Stellantis Chief Executive Officer Car- Read also:
without open passenger-car pooling ar- los Tavares first announced the plan to Stellantis says chip shortage
rangements with other automakers,” the end its agreement with Tesla, in an inter- worsening, could linger into 2022
company said in an emailed statement. A view with the French weekly Le Point. Click here
Tesla representative didn’t immediately Euro zone business growth
respond to a request for comment. accelerated in April as services
expanded — PMI Click here
Tesla has steadily increased sales of reg-
ulatory credits to carmakers that need help
complying with emissions standards that
are getting stricter in Europe, China and

T H U R S D A Y M A Y 6 , 2 0 2 1 20 T H E E D G E C E O M O R N I N G B R I E F

WORLD

The Dogecoin joke is turning serious
in latest crypto binge

BLOOMBERG

BY JUSTINA LEE & JOANNA OSSINGER,
YAKOB PETERSEIL, VILDANA HAJRIC,
CLAIRE BALLENTINE &
ANCHALEE WORRACHATE

Bloomberg

LONDON/SINGAPORE (May 5):For any- Dogecoin market to a US$2 trillion record.
one who still thinks Dogecoin is a joke, there buying got so “At some point, something is just real,”
are some 90 billion reasons that say it’s not. fevered Tuesday,
Robinhood’s trading said Sam Bankman-Fried, the Hong Kong-
That’s how much the digital token is app briefly crashed. based chief executive officer of the FTX
nearly worth in dollar terms, after jump- crypto exchange. “If Dogecoin is stupid
ing again in Wednesday trading. Useless now and it’d be very dangerous to be short.” and valueless, it shouldn’t be worth US$90
or not, the coin has been swept up in the The overnight gain took Dogecoin’s billion. How about gold or Bitcoin or eu-
crypto mania that’s gripped markets awash ros? Our collective imagination has given
in central bank largesse. one-week advance to 118% and its value them value, and now we just think about
to US$87 billion in Wednesday trading, them having value.”
It’s the latest milestone in a year of specu- according to CoinMarketCap.com data,
lative excesses for a market Nouriel Roubini eclipsing the largest exchange-traded gold Dogecoin, started in 2013 as a joke based
once described as “the mother of all bub- fund and even stocks like Fedex Corp and on the Shiba Inu breed of dog, may become
bles.”While in the past, trillions of dollars in Snap Inc. A year ago, the asset was worth so accepted by the mainstream it might
stimulus by governments and central banks just US$315 million. evolve into a payment option at retailers,
might have triggered a rush into gold for Bankman-Fried said. At Blockfolio, a firm
the inflation-wary and risky stocks for the It’s all the more remarkable given that owned by FTX that helps users manage their
intrepid, a deluge of cash this time round other retail favourites from bullish stock op- crypto portfolios, trading volumes are spik-
is flooding into the nascent crypto market. tions to CathieWood’s tech fund have all seen ing with Dogecoin’s every gain, a sign it’s
activity dip from the highs earlier this year. become essential to the whole ecosystem.
Few illustrate this better than Dogecoin,
a so-called memecoin that’s become the des- Now, cryptomania might even be hurt- Dogecoin buying got so feveredTuesday,
tination for a horde of day traders egged on ing gold, according to some analysts.The Robinhood’s trading app briefly crashed.
by Internet buzz and a self-propelling buying precious metal has suffered outflows in re- Other so-called altcoins surged, with Dash
frenzy. A potential trigger for the latest leg cent months, even as a deluge of stimulus spiking 11% over a 24-hour period through
up:Tesla Inc co-founder and crypto fan Elon cash drove the value of the world’s crypto the NewYork morning on Wednesday and
Musk is appearing on Saturday Night Live Ethereum Classic rising 25%.
this weekend, spurring speculation he may
talk up Dogecoin again on the comedy show. While it’s difficult to assign firm reasons
to Dogecoin’s ascent, a few factors have
“When you think about the full spir- fueled the gains. On April 20, a day nor-
it of what this crypto revolution is, there’s mally associated with pot, some users got
something pure in what Dogecoin has done,” #DogeDay trending to push up the price.
Mike Novogratz, founder of Galaxy Digital Celebrities from Musk to the Dallas Mav-
Holdings, said on CNBC.“I worry that once ericks’ billionaire owner Mark Cuban also
the enthusiasm rolls out, there are no devel- jumped on the bandwagon. The Gemini
opers, there’s no institutions coming in. But crypto exchange backed by the Winklev-
it’s got the moniker of the people’s coin right oss twins announced Tuesday it will soon
enable trading of the coin.

“As the economy reopens, a lot of these
Covid-related movements in various assets
will experience some volatility,” saidTony
Bedikian, head of global markets at Citi-
zens Bank. “But I think they are going to
become a permanent part of the currency
markets, as central banks have continued
to print money at astronomical levels.”

T H U R S D A Y M A Y 6 , 2 0 2 1 21 T H E E D G E C E O M O R N I N G B R I E F

WORLD

IEA says governments should consider
stockpiling battery metals

(May 5):Western governments should con- BY MARK BURTON & JAVIER BLAS While China and Japan have strategic
sider stockpiling critical battery metals such Bloomberg inventories of critical metals, such stock-
as cobalt and lithium, the International piles are not widely held by western na-
Energy Agency said, in a stark warning of Meeting our climate tions. China also has a strong presence in
the geopolitical risks that accompany the change goals will the processing of such metals, as well as
green-energy transition. producing about 60% of the world’s rare
turbocharge demand earth elements.
That call comes as some policy makers for mineral resources,”
worry the shift from burning fossil fuels to The US maintains a stockpiling program
a greener economy will expose the world to says IEA head. through the Defense Logistics Agency, but
new threats. Unlike oil, a relatively ubiqui- there have been few large-scale purchases
tous commodity, production and processing the influential watchdog is urging govern- since the Cold War when metals such as
of minerals such as lithium, cobalt and some ments to brace against new supply risks as cobalt first gained strategic importance as
rare earth elements is highly concentrated, the world becomes increasingly reliant on an an alloy in jet engines.
with the top three producers accounting for array of critical minerals that are often only
more than 75% of global supply. produced at scale in a handful of countries. Now cobalt plays a crucial role in
Strategic reserves high-capacity lithium-ion batteries of the
Stockpiling programs could provide a Building new strategic reserves could have type used byTesla Inc. Cobalt has become
valuable buffer as leading industrial nations unintended consequences, potentially a particular concern because the Demo-
look to develop reliable supplies of metals boosting demand and prices as govern- cratic Republic of Congo, a conflict and
and minerals that will play a critical role in ments vie with automakers for scarce met- poverty-wracked African nation, accounts
a decarbonizing world, the energy watchdog als. Commodities from copper to palladium for more than 70% of the world’s supply.
said in a report on Wednesday. are already soaring as the global economy
rebounds from the pandemic. US warning
“Meeting our climate change goals will Earlier this year, the US Department of
turbocharge demand for mineral resourc- Energy warned that the nation lacked “suf-
es,” Fatih Birol, the head of the IEA, said ficient domestic resources to meet expected
by phone. “Voluntary strategic stockpiling demand for certain critical materials, such
can in some cases help countries weather as cobalt and gallium.” Partnerships with
short-term supply disruptions.” allies to build supply chains and developing
substitutes were among the department’s
The IEA was founded in 1974 following recommendations.
the first global oil shock as leading indus-
trial nations including the US, Japan and To address the looming challenges, the
Germany sought to enhance energy secu- IEA advocates boosting recycling of raw
rity through stockpiling.Those strategic oil materials and setting a clear policy agenda
reserves have been used several times, in- to encourage miners to develop new sources
cluding during the GulfWar in 1990-1991 of supply.The agency also joins investment
and during the Libyan civil war in 2011. banks and commodities trading houses in
warning that rising demand during the en-
The agency has since broadened its re- ergy transition could drive markets like cop-
mit, advising governments on energy policy per into deep deficits.
and increasingly on climate change. Now
While the likes of Goldman Sachs Group
Inc andTrafigura Group say higher prices
are needed to incentivize new supply, the
IEA is calling on governments to directly
address supply vulnerabilities. Stockpiling
is likely to be most effective in small and
opaque markets where supply is heavily
concentrated, the IEA said.

“Today’s supply and investment plans
for many critical minerals fall well short of
what is needed,” the watchdog said. “The
response from policy makers and companies
will determine whether critical minerals re-
main a vital enabler for clean energy transi-
tions or become a bottleneck in the process.”

Read also: Six reasons Asia’s oil re-
finers aren’t going away anytime soon
Click here

T H U R S D A Y M A Y 6 , 2 0 2 1 22 T H E E D G E C E O M O R N I N G B R I E F

LEISURE

Le Cirque auction puts NewYork’s
socialite history on the block

SLIM AARONS/GETTY IMAGES VIA BLOOMBERG

BY PETER ELLIOT
Bloomberg

(May 5): Sirio Maccioni, the ringmaster of The late Sirio Maccioni hams it up in a 1981 photo spotlight of the gossip columnists (before
Le Cirque who died last year at 88, used with ladies who lunched. (From left: Kathryn Twitter, Facebook, and Instagram) onto
to half-joke that all he really did was stop Penske, Ivana Trump, Muffie Bancroft, Anne the dishes they created. If you’ve ever
people from stealing the famed restaurant’s made pasta primavera at home, you have
schwag: marked ashtrays, coffee cups, and Arledge, Anna Moffo Sarnoff, Cristina DeLorean, Sirio — and his hotline to every editor of
silverware. Anyone who has ever wanted a Maria Kimberly, and Patricia Kluge.) every paper — to thank. It was the sem-
memento will have opportunities through inal dish of the ’70s.
May 12 as Black Rock Galleries hosts an “It would be great to maybe sell them
online auction to sell many of the original all in one batch, but we’re also selling them Here’s the secret, though: His famous
contents from Le Cirque over the course individually,” says Mauro Maccioni, Sirio’s chefs, from Daniel Boulud to David Bou-
of its multiple locations from 1974–2018. youngest son. “Many a celebrity has sat ley to Geoffrey Zakarian, had no intention
underneath those murals.” of going down in history making a creamy,
The 314 lots range from plates and gooey pasta that was always a sort-of Ita-
aprons to a silver-plated carving trolley. As As with many famous or infamous res- lo-American comfort food. Still, it made
with any auction, it’s always good to have a taurant murals — the sea view from La the restaurant famous. One patron, Donald
professional who can distinguish the best Côte Basque, or the French park scenes that Trump, had it as an “off-the-menu” item
items from the pedestrian.As the co-author graced La Caravelle (one of which is at the almost every time he came.
of Sirio’s autobiography, I’ve spent much 55th Street Sweetgreen in Manhattan) —
of my life with all of these items and can he may or may not get his wish. It will take Cue the carving station that Sirio set up
happily direct you. someone with a particular vision and an ex- in a hallway, stuffed with all the ingredients
pensive decorator to put them in one space. prepared. “I came to like it; it was uniquely
First, let’s not compare this auction to Sirio,” Boulud told me in interviews for the
the last big restaurant auction, the US$4.1 The more practical collector should turn biography. “Sirio taught me to give guests
million dollar sale of mid-century treasures eyes to Lot 21, marked “Fabulous Origi- what they want, and I agree, but so many
from the Four Seasons in 2016.The Four nalWall Sconce Lights,” with an addition- parts! So yes, it’s true. I banished it to the
Seasons was a landmarked Philip Johnson al note that they’re in need of some love. hallway!”
design; items included A-list collectibles by They somehow wound up in every paparaz-
Ludwig Mies van der Rohe, Hans Wegn- zi picture in the age that created paparazzi, In this way, any of his famous clients
er, Eero Saarinen, and L. Garth and Ada not to mention big hair and shoulder pads. could have the famous dish, famously put
Louise Huxtable that are in the permanent Want a shot of Jacqueline Kennedy Onas- together by the master of ceremonies, à la
collection of the Museum of Modern Art. sis? There she is, with the sconces behind minute, while Boulud made the Paupiette
her. Or President Ronald Reagan with his of Sea-Bass that the future president’s wife,
Le Cirque was a different story. It moved wife Nancy?There they are.The best items, Ivana, preferred.
from location to location in Manhattan and like the sconces, are the pieces commis-
expanded to Las Vegas, New Delhi, Ban- sioned from various designers by decora- Boulud’s forthcoming Le Pavillon at
galore, Abu Dhabi, Mumbai, and Dubai, tor Ellen Lehman McCluskey when she One Vanderbilt is itself a dramatic ode to
mimicking its clientele and the tastes of created the original room in 1974. that most famous restaurant of the post-war
multiple periods. Each Manhattan loca- era in NewYork, one which helped create
tion was a sum of its parts. Taken out of Then there’s Lot 17, the original the likes of Sirio and Le Cirque. And so
context, it might seem like, well, a lot of meat-carving station: “A fantastic piece the aristocratic lineage goes.
junk. Rows and rows on the website pres- where we’d carve whole ducks, but you
ent used chairs, “Hotel silver” creamers can also transform it to a hot dish where “It’s moving to see these fantastic treas-
your grandmother gave you (and you still we’d serve pot au feu,” says Maccioni. ures after so many years,” says Boulud
don’t know what to do with), and the odd, when rung up about the auction. “They
beveled mirror. Don’t expect huge prices, I’ll add my own story on its various uses bring back fond memories of my days at
except on some key items. beyond meat. Le Cirque with Sirio. I am sure everyone
will bid fiercely for a piece of New York
The prize, surely, will be Kenneth Le Cirque’s true space in culinary his- restaurant history.”
Stern’s six original, Fragonard-inspired tory rests in part on Sirio’s ability to ac-
mural paintings of monkeys (Lots 10- quire talented young chefs and turn the CONTINUES ON PAGE 23
15) in all sorts of culinary scenes. These
hung in the tiny room that was the original
location on 65th Street (now part of the
restaurant Daniel), so they acted as prin-
cipal decor. Under these monkeys sat the
most beautiful and powerful women in the
world — and a few qualifying men — as
exemplified by the famous photograph of
Maccioni at his most handsome, lying in
front of them.

T H U R S D A Y M A Y 6 , 2 0 2 1 23 T H E E D G E C E O M O R N I N G B R I E F

LEISURE

(May 5):The twin pillars of Mexican gas- It’s not just tortillas and tamales.The process unlocks a
tronomy, corn and agave, have largely kept agave; distillers particular floral sweetness in the corn that
to their respective lanes over the centuries. find success in is preserved through limited time in the
It’s impossible to imagine Mexican food Mexican corn too barrel. “It has a nice synergetic relationship
without corn tortillas, tamales and pozole, with the wood,” says Saldaña. “But not as a
but if you’re looking for a distilled spirit, it BY MATTHEW KRONSBERG traditional whiskey, in which wood is really
will almost certainly be agave-based mez- Bloomberg the main story.” US$40
cal or tequila.
in French oak casks that once held either Modern Ancient
But lately, in a development that feels Burgundy or Bordeaux wine, the whiskeys Distiller Rob Easter has spent more than
both revolutionary and utterly natural, dis- are bottled at a stage in maturation that a decade obsessed with producing spirits
tillers have begun to use Mexico’s treasure French compares to that of a reposado te- that showcase heirloom and regenerative-
trove of heirloom corn varieties to make quila, in which the distillate mellows and ly grown grains, first with Workhorse Rye
their own whiskeys. American drinkers picks up some barrel notes. From US$59 (motto: “Drink less, drink better”) and
should feel right at home with these: Bour- Abasolo now with Modern Ancient. He makes the
bon and many domestic whiskeys, after all, Although distiller Ivan Saldaña earned a whiskeys from brightly colored, intensely
are corn-based. PhD in evolutionary biology, focusing on flavored corn, much of which is grown in
agave, he and his partners at Casa Lum- Mexico and imported to the United States
Other applications are finding their way bre — whose Ancho Reyes chile liqueurs by Masienda, which supplies it such res-
to the United States as well. Ivy Mix, au- and Montelobos mezcals should be better taurants as Cosme and Taco Maria. The
thor of Spirits of Latin America, and own- known — have spent the past few years heirloom varieties being distilled include
er of the Brooklyn, NY, cocktail bar Ley- obsessed with corn. Oaxacan Bolita Belatove, a pinkish-purple
enda, is particularly beguiled by Nixta, a grain that Masienda says “may be among
liqueur distilled from, and flavored with, “We fell in love with a particular vari- the rarest of heirloom corn varieties in all
corn. “I’ve never had anything like it,” she ety that grows only about 2,000 meters of Mexico.” US$44 for 375 ml
says. “I made margaritas with it, replacing above sea level,” in the foothills of the Ne-
the Cointreau with the corn liqueur, and vado deToluca volcano near Mexico City. Siglo Cero Pox
it was delicious. Like, so good.” That corn, called cacahuazintle, is most Pox (pronounced poshe) hails from the
commonly used in the hearty soup pozole. southern State of Chiapas, where theTzot-
She admits that a “corn Margarita” zil Mayans produced and consumed it as
would be a tough sell on a menu, but says But what truly sets Abasolo apart is that a ceremonial drink. For Siglo Cero’s ver-
that if the category were to reach a broader before fermentation, the corn is nixtamal- sion of the spirit, four varieties of corn are
audience, “I think it will really, really blow ized, or soaked in an alkaline solution, as is slowly fermented with a little bit of wheat
up.And I think that’s awesome.” (Nixta was done before it can be ground into masa for bran, freshly juiced sugar cane, and pilon-
also named one of our best spirits of 2020.) cillo, a raw brown sugar. Twice distilled
in wood-fired, copper pot stills, it has in-
While these whiskies have corn in com- credible body for a clear spirit, says Mix,
mon with bourbon, they are clearly carv- “with an oiliness that you’d get from a very
ing out their own category. Rather than premium Scotch.” US$47.
the oak-forward, spicy-sweet richness of a
Woodford Reserve, expect something light- Nixta Licor de Elote
er in which the corn still takes precedence. For anyone who has ever wanted to (literal-
Here are five spirits using Mexico’s greatest ly) drink in the toasty sweet smell of tortillas
grain to consider. fresh off the comal, this is your moment.
A sweet corn mash that is fed much like a
Sierra Norte sourdough, so it develops depth and rich-
Douglas French, who has lived in Oaxaca ness over time, is combined with piloncillo
for 34 years, brings a mezcalero’s sensibility sugar and the base spirit of Absolo whiskey
to his whiskey making. Just as individual for a remarkably complex finished prod-
species of agave plants are allowed to show- ucts. US$32.
case their distinct characteristics, so too
are the heirloom corn varieties — yellow,
white, black, red, and purple — in Sierra
Norte’s whiskeys. After two to three years

FROM PAGE 22 There are gems from the Adam Tiha- Mauro tells us it’s being readied should
ny days, Le Cirque’s controversial move to Le Cirque in NewYork ever rise again.The
I’d be remiss not to point out that the first the landmarkedVuillard Houses, best epit- Maccionis have full, “very expensive New
nine lots consist wholly of murals/pictures omized by Eloise-illustrator Hilary Knight’s York storage rooms” should the dream be-
from Milton Glaser, the American graphic two drawings, Lot 98 and Lot 137. come a reality. And if not? More of those
designer who also died last year. He made fabulous sconces could come to market.
them for Sirio and me, in part as chapter Then there are items that are not there,
dividers for our book and later displayed at such as the Robert Cenedella canvas that As for me, I used to protest frequently
Le Cirque Mexico City. Glaser, who creat- captured the sacred monsters of society: hun- that for all the time I spent buried in Sirio’s
ed the “I Love NewYork” campaign, among dreds of bold-faced names painted in or tak- basement office listening to his stories, sur-
many iconic designs, was a friend of Sirio and en out, depending on Sirio’s mood. While rounded by many of these items, all I got
would have been the first to say that anyone many copies and prints are in the auction, were two green Limoges/Bernardaud bread
who buys these works now will have made the original is currently at Cenedella’s stu- plates. If you promise not to compete against
a good investment. dio — maybe having a new president added? me, I’m intending to fill out the set.

T H U R S D A Y M A Y 6 , 2 0 2 1 24 T H E E D G E C E O M O R N I N G B R I E F

MARKETS

CPO RM 4,037.00-5.00 OIL US$ 69.660.78 RM/USD 4.1190 RM/SGD 3.0816 RM/AUD 3.1806 RM/GBP 5.7239 RM/EUR 4.9422

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)

FOCUS DYNAMICS GROUP BHD 501.2 -0.005 0.100 -84.62 637.0

SEDANIA INNOVATOR BHD 348.3 0.070 0.305 110.34 92.2

DAGANG NEXCHANGE BHD 196.0 0.015 0.695 208.89 1649.0

KTG BHD 143.3 0.010 0.220 -22.81 152.0

LION INDUSTRIES CORP BHD 140.2 -0.005 0.925 34.06 629.8

VELESTO ENERGY BHD 137.7 -0.010 0.150 7.14 1232.3

TA WIN HOLDINGS BHD 118.3 0.020 0.155 106.67 427.2

DATAPREP HOLDINGS BHD 116.8 0.450 1.950 983.33 1210.8

VORTEX CONSOLIDATED BHD 114.9 0.000 0.130 -33.14 86.5 World equity indices

UCREST BHD 103.5 -0.015 0.370 138.71 226.7

MINDA GLOBAL BHD 94.0 -0.010 0.150 150.00 198.3 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

FINTEC GLOBAL BHD 91.3 -0.005 0.045 -43.75 155.1 (%) (%)
DOW JONES 34,133.03 19.80 0.06 INDONESIA 5,975.91 12.09 0.20
SAPURA ENERGY BHD 89.9 0.000 0.140 12.00 2237.1

SEALINK INTERNATIONAL BHD 88.5 -0.100 0.340 78.95 170.0 S&P 500 4,164.66 -28.00 -0.67 JAPAN 28,812.63 -241.34 -0.83

KNM GROUP BHD 84.8 0.005 0.190 -7.32 625.4 NASDAQ 100 13,544.67 -255.05 -1.85 KOREA 3,147.37 20.17 0.64

ENGTEX GROUP BHD 84.4 0.080 0.855 18.75 373.1 FTSE 100 7,006.52 83.35 1.20 PHILIPPINES 6,299.69 -59.46 -0.94

CAREPLUS GROUP BHD 75.2 -0.320 2.460 20.31 1353.2 AUSTRALIA 7,095.82 27.96 0.40 SINGAPORE 3,153.59 -25.54 -0.80

BUMI ARMADA BHD 72.5 0.010 0.425 21.43 2502.8 CHINA 3,446.86 -28.05 -0.81 TAIWAN 16,843.44 -90.34 -0.53

KEY ASIC BHD 68.2 -0.005 0.165 106.25 207.8 HONG KONG 28,417.98 -139.16 -0.49 THAILAND 1,551.14 -31.99 -2.02

HIBISCUS PETROLEUM BHD 66.5 0.030 0.675 16.38 1342.5 INDIA 48,624.89 371.38 0.77 VIETNAM 1,256.43 14.23 1.15

Data as compiled on May 5, 2021 Source: Bloomberg Data as compiled on May 5, 2021 Source: Bloomberg

Top gainers (ranked by %) Top losers (ranked by %)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

DATAPREP HOLDINGS BHD 1.950 30.00 116810.4 983.33 1210.8 PRICEWORTH INTERNATIONAL BHD 0.015 -25.00 4758.0 -50.00 67.6

SEDANIA INNOVATOR BHD 0.305 29.79 348334.7 110.34 92.2 SEALINK INTERNATIONAL BHD 0.340 -22.73 88473.3 78.95 170.0

TALAM TRANSFORM BHD 0.030 20.00 35.1 0.00 128.9 PEGASUS HEIGHTS BHD 0.020 -20.00 29308.1 -20.00 211.8

EA HOLDINGS BHD 0.030 20.00 2148.9 0.00 152.2 SC ESTATE BUILDER BHD 0.095 -17.39 55116.0 58.33 98.6

FSBM HOLDINGS BHD 0.130 18.18 24.0 30.00 18.4 VSOLAR GROUP BHD 0.025 -16.67 5898.4 -37.50 70.5

TA WIN HOLDINGS BHD 0.155 14.81 118278.9 106.67 427.2 WATTA HOLDINGS BHD 0.710 -16.47 1855.0 27.93 60.0

HUBLINE BHD 0.045 12.50 7428.0 -10.00 187.2 KEY ALLIANCE GROUP BHD 0.035 -12.50 1546.0 -30.00 82.4

WIDETECH MALAYSIA BHD 1.280 12.28 143.5 113.33 57.3 STELLA HOLDINGS BHD 0.945 -12.50 479.6 16.67 63.3

MTOUCHE TECHNOLOGY BHD 0.275 12.24 11568.3 -19.33 175.4 CAREPLUS GROUP BHD 2.460 -11.51 75169.8 20.31 1353.2

MCLEAN TECHNOLOGIES BHD 0.610 11.93 44318.7 205.00 120.3 ADVENTA BHD 1.950 -10.96 13936.6 27.45 297.9

CAELY HOLDINGS BHD 0.425 11.84 7213.9 -2.30 99.6 ORIENTAL INTEREST BHD 0.965 -10.65 459.0 61.76 348.4

TRIVE PROPERTY GROUP BHD 0.095 11.76 8512.7 -29.95 100.0 JOE HOLDINGS BHD 0.045 -10.00 4495.2 -59.09 80.1

LEADER STEEL HOLDINGS BHD 0.800 11.11 40998.8 10.34 107.6 FINTEC GLOBAL BHD 0.045 -10.00 91264.4 -43.75 155.1

PENSONIC HOLDINGS BHD 0.820 10.81 1731.8 49.09 103.9 SHIN YANG SHIPPING CORP BHD 0.410 -9.89 23985.9 28.13 478.9

ENGTEX GROUP BHD 0.855 10.32 84376.5 18.75 373.1 SCOMI GROUP BHD 0.050 -9.09 38048.6 66.67 48.0

BERTAM ALLIANCE BHD 0.115 9.52 18.0 -11.54 28.5 CME GROUP BHD 0.050 -9.09 1117.0 -16.67 44.0

SOUTHERN STEEL BHD 1.170 9.35 5781.1 36.84 697.7 WZ SATU BHD 0.220 -8.33 9901.0 36.43 112.6

IBRACO BHD 0.545 9.00 42.1 4.81 270.5 XOX BHD 0.055 -8.33 6820.4 -50.00 216.4

HENG HUAT RESOURCES GROUP BHD 0.780 8.33 288.9 217.21 97.6 OLYMPIA INDUSTRIES BHD 0.115 -8.00 1264.4 27.78 117.7

IMPIANA HOTELS BHD 0.07 7.69 1666.2 -12.5 75 JCY INTERNATIONAL BHD 0.405 -7.95 18674.8 -23.58 853.5

Data as compiled on May 5, 2021 Source: Bloomberg Data as compiled on May 5, 2021 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

TRANSOCEAN HOLDINGS BHD 6.650 0.450 3964.3 741.77 299.9 FRASER & NEAVE HOLDINGS BHD 29.020 -0.900 145.6 -9.54 10643.9

DATAPREP HOLDINGS BHD 1.950 0.450 116810.4 983.33 1210.8 KUALA LUMPUR KEPONG BHD 21.600 -0.480 280.4 -8.78 23296.8

MALAYSIAN PACIFIC INDUSTRIES 38.680 0.180 178.5 49.00 7693.3 VITROX CORP BHD 15.400 -0.340 165.8 4.76 7271.5

LPI CAPITAL BHD 13.840 0.180 20.8 0.87 5513.6 CAREPLUS GROUP BHD 2.460 -0.320 75169.8 20.31 1353.2

BRITISH AMERICAN TOBACCO M’SIA 14.500 0.140 639.9 2.98 4140.2 RAPID SYNERGY BHD 8.100 -0.290 37.8 22.73 865.9

WIDETECH MALAYSIA BHD 1.280 0.140 143.5 113.33 57.3 UNISEM M BHD 7.650 -0.250 1538.5 23.79 6118.4

PMB TECHNOLOGY BHD 5.650 0.110 9.4 23.36 1162.6 SUPERMAX CORP BHD 5.570 -0.250 21251.1 -7.32 14580.2

SOUTHERN STEEL BHD 1.170 0.100 5781.1 36.84 697.7 ADVENTA BHD 1.950 -0.240 13936.6 27.45 297.9

MALAYSIA SMELTING CORP BHD 2.760 0.100 3289.4 93.01 1104.0 UWC BHD 5.630 -0.220 3449.0 14.90 6196.6

FAR EAST HOLDINGS BHD 3.000 0.090 20.1 6.38 1781.5 NESTLE MALAYSIA BHD 135.600 -0.200 86.0 -2.38 31798.2

PERUSAHAAN SADUR TIMAH M’SIA 4.270 0.090 123.8 9.49 551.2 COMFORT GLOVE BHD 2.450 -0.200 12129.1 -16.67 1422.1

SUNGEI BAGAN RUBBER CO MALAYA 3.200 0.080 8.1 3.23 212.3 D&O GREEN TECHNOLOGIES BHD 4.400 -0.190 7642.6 92.98 5158.4

ENGTEX GROUP BHD 0.855 0.080 84376.5 18.75 373.1 ALLIANZ MALAYSIA BHD 13.220 -0.160 22.2 -10.55 2342.2

LEADER STEEL HOLDINGS BHD 0.800 0.080 40998.8 10.34 107.6 PIE INDUSTRIAL BHD 3.000 -0.150 979.5 23.97 1152.1

PENSONIC HOLDINGS BHD 0.820 0.080 1731.8 49.09 103.9 MR DIY GROUP M BHD 3.790 -0.140 6866.6 21.47 23788.3

HENGYUAN REFINING CO BHD 5.680 0.080 3852.5 -5.18 1704.0 HONG LEONG FINANCIAL GROUP 16.480 -0.140 94.1 -8.75 18873.6

UEM EDGENTA BHD 1.920 0.070 1115.9 0.52 1596.7 WATTA HOLDINGS BHD 0.710 -0.140 1855.0 27.93 60.0

SEDANIA INNOVATOR BHD 0.305 0.070 348334.7 110.34 92.2 STELLA HOLDINGS BHD 0.945 -0.135 479.6 16.67 63.3

MCLEAN TECHNOLOGIES BHD 0.610 0.065 44318.7 205.00 120.3 TOP GLOVE CORP BHD 5.320 -0.130 15022.9 -13.07 42582.7

ANN JOO RESOURCES BHD 2.960 0.060 7110.5 88.54 1598.1 MI TECHNOVATION BHD 3.68 -0.12 1757.4 -6.6 3018.5

Data as compiled on May 5, 2021 Source: Bloomberg Data as compiled on May 5, 2021 Source: Bloomberg