The Edge 05/05/21

W E D N E S DAY, M AY 5 , 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 179/2021

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HARTALEGA 4Q NET PROFIT RISES 12% TO RM1.12B ON HIGHER
SALES AND LOWER COSTS; DECLARES 17.7 SEN DIVIDEND p6

W E D N E S DAY, M AY 5 , 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 179/2021

CEOMorningBrief
HOME: AstraZeneca: MoH gives assurance of immediate treatment if blood clots occur p2
Malaysia Airlines owner Malaysia Aviation Group aims to break even by 2023 through
Long Term Business Plan 2.0 — CEO p7
US proposes G-7 coordination to counter China’s economic might p16

MCO 3.0 in six Selangor districts,
but economic activities allowed

Report on Page 3.

Economist calls
for windfall tax

on industries that
benefit from Covid-19

Report on Page 4.

WEDNESDAY MAY 5, 2021 2 THEEDGE CEO MORNING BRIEF

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PUTRAJAYA (May 4): The Ministry of AstraZeneca: MoH Other symptoms include unusual head-
Health (MoH) will constantly monitor the gives assurance aches accompanied by blurred vision; nau-
incidence of blood clots with the administra- of immediate sea and vomiting; difficulty speaking; weak-
tion of theAstraZeneca Covid-19 vaccine and ness; drowsiness or seizures; small spots
gives an assurance of immediate treatment in treatment if blood on the skin; bruising or bleeding and diffi-
the event of such an incident occurring, said clots occur culty breathing; chest pain; swelling in the
Health Minister Datuk Seri Dr Adham Baba. legs or persistent abdominal pain, he said.
Bernama
“The occurrence of blood clots is very Adham said medical practitioners treat-
rare, and the administration of this vac- Kuala LumpurWorldTrade Centre and Shah ing cases of AstraZeneca vaccine recipients
cine has taken into account its benefits Alam Ideal Convention Centre (IDCC). should investigate whether the individuals
in preventing Covid-19 infection, which had received the vaccine within 30 days
outweighs the risks from vaccination,” he Adham said that the AstraZeneca vaccine before symptoms began.
said in a statement today. recipients are advised to constantly monitor
their health, and seek immediate treatment if The medical practitioners will also need to
Malaysia received 268,800 doses of the they experience symptoms within four days do further examination to confirm whether
AstraZeneca Covid-19 vaccine through to four weeks after being inoculated. the symptoms shown are due to blood clots.
the COVAX Facility on April 24, and the
vaccine will be administered to members He said immediate treatment should be “Relevant examinations including blood
of the public from tomorrow. sought if there are symptoms such as a severe and radiology examinations should be carried
headache that does not go away with pain- out as soon as possible. Immediate treatment
The AstraZeneca vaccination is open to killers or gets worse, and if the headache gets should be given if the test results show that
268,000 individuals on a “first-come-first- worse when lying down or while bending over. blood clotting has actually occurred,” he said.
served” basis for Kuala Lumpur and Selan-
gor residents, and the first appointment slot Haematologists should be contacted im-
for the vaccination will be held tomorrow at mediately for advice, and medical prac-
the designated vaccination centres (PPV). titioners should also prepare an adverse
event following immunisation (AEFI) re-
The PPV include Universiti Malaya (UM), port to the National Pharmaceutical Reg-
Universiti Kebangsaan Malaysia (UKM), the ulatory Agency (NPRA), he said.

Covid-19: New cases climb to 3,120 with 23 deaths; actives soar to 31,516

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 4): Malaysia re-
ported 3,120 new Covid-19 infections today, 5000
pushing the number of active cases in the
country to 31,516.This is the third straight 4000 3,120
day that active cases have stayed above the 3000 3,169
30,000 mark, the Ministry of Health said. 2000

Also reported were 23 more deaths, 1000
the highest in two months. Six of the new
deaths each were reported in Kelantan and 0 May 4, 2021
Selangor, four in Sarawak, two in Johor, two Sept 1, 2020
in Sabah and one each in Kedah, Perak
and Melaka. All the deceased were Ma- Of today's new cases, 3,114 were local Sarawak (620) and Kuala Lumpur (408).
laysians, aged between 37 and 85 years. transmissions while six were imported, said Noor Hisham also said 2,334 Covid-19
These raised the Covid-19 death toll to Health director-general Tan Sri Dr Noor
1,574. The highest daily deaths recorded Hisham Abdullah in a statement. And Sel- patients were discharged today, raising to-
so far was 25, on Feb 18. angor topped the list again with the highest tal recoveries to 387,542, or 92.1% of total
Covid-19 daily infections, at 675, followed by infections, which now stands at 420,632
with the latest additions.

WEDNESDAY MAY 5, 2021 3 THEEDGE CEO MORNING BRIEF

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MCO 3.0 in six Selangor districts,
but economic activities allowed

BY AHMAD NAQIB IDRIS
theedgemarkets.com

KUALA LUMPUR (May 4): Six districts and the Ministry of Gombak: Gombak, Rawang, Ampang,
in Selangor — covering areas such as Pet- International Trade Setapak, Ulu Klang, Selayang, Kundang,
aling Jaya, Shah Alam, Subang Jaya, Klang, and Industry soon. Kuang, Batu Caves, Sungai Buloh, Kam-
Puchong, Kajang, Cheras, Ampang and pung Sungai Pusu
Rawang — will be put under the Move- He said the remaining
ment Control Order (MCO) from May three districts in Selangor Kuala Langat: Bandar Saujana Pu-
6 to 17 due to the surge in new Covid-19 — Kuala Selangor, Sabak tra, Banting, Batu, Jugra, Teluk Datok,
cases there. Bernam and Hulu Selangor — Morib, Tanjung Sepat, Teluk Panglima
remain under Conditional Move- Garang
Social activities are disallowed under the ment Control Order (CMCO).
new measures, but most economic activi- Sepang: Pekan Sepang, Dengkil, Sun-
ties will not be affected, said Senior Minister Hari Raya Aidilfitri SOPs gai Pelek, Cyberjaya, Salak Tinggi, KLIA
(Security) Datuk Seri Ismail SabriYaakob. The minister also announced Read also:
SOPs relating to the upcom- Inter-district, inter-state travels
He said the standard operating proce- ing Hari Raya Aidilfitri. allowed for those going for Covid-19
dures (SOPs) to be enforced in the six dis- vaccination Click here
tricts — Hulu Langat, Petaling, Gombak, Hari Raya prayers are al- Covid-19: Govt to list premises at
Klang, Kuala Langat and Sepang — will lowed at mosques and suraus risk under HIDE system from May 7
be the same as those enforced in other in MCO, CMCO, and Recovery Click here
MCO areas such as Kelantan and the five Movement Control Order (RMCO) 589,951 individuals have received both
districts in Kedah. areas, he said, although the final decision doses of Covid-19 vaccine as at May 3
lies with the religious authority of each state. — Dr Adham Click here
“Grocery and convenience stores as well
as shops selling daily necessities are al- However, the feasts following the prayers
lowed to operate between 6am and 10pm. at the mosques are not allowed for MCO
Petrol stations are also allowed to operate areas.
between 6am and 10pm,” Ismail Sabri told
a press conference today. Visiting relatives is allowed in MCO are-
as, but only on the first day of Aidilfitri with
He added that dining premises will be guests not exceeding 15 people at one time,
allowed to operate between 6am and mid- while in CMCO areas, it is allowed for the
night in the six districts.They will, however, first three days of Aidilfitri with guests lim-
not allowed to accept dine-in orders un- ited to up to 25 people at any given time.
der the National Security Council’s (NSC)
guidelines on MCO. On the other hand, visiting graves is not
allowed in MCO areas, but allowed for
Daily markets, including night and CMCO and RMCO areas, being limited to
morning markets, will be allowed to op- six people per lot not exceeding 30 minutes.
erate between 6am and 2pm, while Ram-
adan bazaars are still allowed to operate Areas affected by MCO
in line with strict SOPs. The major areas in the six districts placed
under the MCO are as follows (certain areas
However, Ismail Sabri said the state within each district overlap with one another):
government has the power to cease Ram-
adan bazaars, if need be. Hulu Langat: Kajang, Ampang,
Cheras, Bangi, Semenyih, Beranang, Ban-
According to the NSC website, areas un- dar Baru Bangi, BandarTun Hussein Onn,
der MCO only allow movement of people for Balakong,Taman Sri Nanding
the purpose of buying daily necessities, med-
ical services and official government work. Petaling: Petaling Jaya, Puchong,
Subang Jaya, Damansara, Shah Alam,
Crossing districts and state borders is not Bukit Raja, Kota Raja, Bandar Sri Da-
allowed without permission from the police. mansara, Country Heights, Puchong, Pu-
chong Jaya, Puchong Perdana, Serdang
Sports and recreational activities that do
not involve physical touch are allowed, as Klang: Kapar, Shah Alam, Meru,
long as the proper SOPs are followed,namely Bandar Baru Klang, Bukit Kemuning,
adhering to physical distancing requirements Pandamaran, Port Klang, Telok Mene-
and being carried out in open and closed gun, Glenmarie Cove, Batu 4
spaces for the purpose of exercise and health.

Economic activities in MCO areas are
allowed to continue, but social activities are
not allowed.

Ismail Sabri said work-from-home direc-
tives will be announced by the government

WEDNESDAY MAY 5, 2021 4 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 4): The gov- Economist calls BERNAMA
ernment should consider implementing a for windfall tax
windfall tax on industries that benefit great- on industries term. It fell to 12% in 2019 from 15.6%
ly from the Covid-19 crisis, according to that benefit from in 2012,” she said.
Khazanah Research Institute senior advi-
sor Professor Dr Jomo Kwame Sundaram. Covid-19 Norhana noted that Malaysia’s individ-
ual income tax also continued to come
“This is precisely the time when you Bernama from a narrow pool of taxpayers.
must reform taxes as you have it (wind-
fall tax) all the time amid extraordinarily Responding to the same question, Insti- For instance, she said that in 2018,
high petroleum prices or palm oil prices. tute of Malaysian and International Stud- among a labour force of 15 million peo-
ies research fellow Dr Muhammed Abdul ple, only 2.5 million were taxpayers.
“Why not for other types of industries?” Khalid pointed out that policymakers tend
the prominent economist said at a panel to ignore the imposition of capital gains tax “With this, expanding the tax base
discussion held in conjunction with the when it comes to the issue of tax reform. should be a priority over the medium
World Bank Group’s webinar titled “Aim- term,” she said, adding that existing tax
ing High: Promoting Inclusion and Financ- “Taxes must be fair ... and we never talk incentives and exemptions should be re-
ing Shared Prosperity” today. about the urgency of imposing capital gains viewed on a regular basis as some of them
tax, maybe because it is going to affect the are outdated and ineffective.
Asked when is the right time to reintro- very well-off in Malaysia,” he said.
duce the goods and services tax (GST), On plans to introduce new taxes,
Jomo opined that now is the best time to Nevertheless, Muhammed said, the Norhana said the new taxes should be ef-
introduce taxes that do not generate reve- most important thing is to ensure good ficient, simple, fair and progressive with an
nue immediately as many have been badly governance and to make sure taxpayers’ effective rechannelling mechanism, as well
impacted by the Covid-19 pandemic. money is used well by the authorities. as enhance productivity of the economy.

“As far as tax reforms are concerned, Meanwhile, touching on the current
in a situation like this, it is the best time taxation framework, Bank Negara Malay-
to introduce taxes which do not generate sia (BNM) assistant governor Dr Norha-
revenue immediately. na Endut noted that the government’s tax
collection capacity had not kept pace with
“You do not generate revenue from tax- the economic growth.
es in the middle of a crisis,” he said.
“Malaysia’s tax policy, or tax to gross
The Ministry of Finance (MoF) told domestic product (GDP) ratio, has been
Dewan Negara in December last year that on a steady decline over the medium
the government had no plans to impose a
windfall profit levy on rubber glove manu-
facturers which had been enjoying super-
normal profits from higher demand and
selling price of rubber gloves worldwide,
nor on other businesses that had profited
greatly due to the pandemic.

KUALA LUMPUR (May 4): Perusa- Perodua’s April 9% from the 220,163 units it sold in
haan Otomobil Kedua Sdn Bhd (Per- vehicle sales 2020 — which is expected to lead to a
odua) sold an estimated 20,339 vehi- record purchase of RM6.5 billion worth
cles in April this year, down 16.5% from down 16.5% from of locally sourced components this year.
the 24,431 units it sold in the previous March on chip
month, no thanks to the semiconductor shortage Perodua is also targeting a production
shortage that is affecting multiple indus- of 272,000 units this year (up 23% from
tries globally. BY SYAFIQAH SALIM 2020’s 220,968 units) and 2.4 million
theedgemarkets.com service intakes (up 20% from 2020’s two
“Despite the global semiconductor million service intakes).
chip shortage, Perodua managed to business partners for viable solutions.
produce 20,278 vehicles in April 2021, “Perodua remains committed towards Back to its April sales for this year, the
pushing our year-to-date (YTD) pro- company noted that the newly launched
duction to 80,661 units,” said Perodua timely deliveries, aided by our economies Ativa made up 4,624 units or over 22%
president and chief executive officer of scale. We thank our valued custom- of the figure, which lifted total Ativa
(CEO) Datuk Zainal Abidin Ahmad in ers very much for their patience.We are units registered since the model’s March
a statement. doing all we can to deliver as many cars 3 launch to nearly 9,000.
as possible before the expected expiry
Perodua’s April sales figure brought of the government’s sales tax exemption Demand for the model remained
itsYTD sales tally to 78,304 vehicles, up at end-June,” said Zainal. strong, Perodua said, with average book-
74% over the 45,034 units sold in the ings of about 290 units daily.
first four months of 2020, which were hit For now, Perodua is maintaining its
by the country’s first nationwide move- 2021 sales target of 240,000 units — up “The waiting period for the Ativa is
ment control order (MCO). currently between two and four months,
depending on the desired colour and var-
“The chip shortage is our top priority iant.We advise our valued customers to
at present and we are deploying all our speak to our authorised sales advisers for
resources to deal with it, including work- accurate and up-to-date delivery times
ing closely with the government and our of various variant-colour combinations
of the Ativa,” said Zainal.

WEDNESDAY MAY 5, 2021 5 THEEDGE CEO MORNING BRIEF

WEDNESDAY MAY 5, 2021 6 THEEDGE CEO MORNING BRIEF

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Hartalega 4Q net profit rises 12% to
RM1.12b on higher sales and lower costs;

declares 17.7 sen dividend

KUALA LUMPUR (May 4): Hartalega BY SYAFIQAH SALIM additional production plants which will
Holdings Bhd saw its net profit for the theedgemarkets.com contribute 19 billion pieces to the annual
fourth quarter ended March 31, 2021 installed capacity.
(4QFY21) grew 11.73% to RM1.12 bil- and total dividends for FY20 amounted
lion from RM1 billion in the immediate to 7.55 sen per share. “With these expansion plans in place,
preceding quarter due to higher sales rev- the group’s annual installed capacity is ex-
enue and lower operation costs, offset by For FY21, the company’s net profit pected to increase to 63 billion pieces over
higher raw material price. soared to RM2.89 billion from RM433.62 the next two to three years,” said the group.
million in the previous year. Full-year rev-
The group’s earnings per share in- enue climbed 129% to RM6.7 billion from During the quarter, it said it has entered
creased to 32.75 sen from 29.31 sen in RM2.92 billion. into a sales and purchase agreement for the
3QFY21, according to its filing with the acquisition of approximately 250 acres of
local bourse today. On its prospects, Hartalega will contin- land in Bukit Kayu Hitam, Kedah.
ue to expand its capacity in NGC, Sepang
Meanwhile, revenue rose 8% to RM2.3 in line with the growing rubber glove de- “The acquisition marks Hartalega’s lat-
billion from RM2.12 billion in the preced- mand globally. est phase of growth, with an investment of
ing quarter. RM7 billion to build 16 new manufactur-
“To date, six out of 10 lines in Plant 7 ing facilities over the next 20 years. Cou-
Hartalega said the higher sales revenue have been commissioned. Upon full com- pled with the earlier investment in Sepang
was attributable to the increase in average missioning, Plant 7 will have an annual (60 acres) and Banting (95 acres), these
selling price as well as sales volume for installed capacity of 2.7 billion pieces. acquisitions will enable the group to re-
the quarter. alise its growth plans towards 95 billion
“In addition, construction for the up- pieces by 2027.
“This was partly offset by the volume coming expansion, NGC 1.5, is currently
reduction due to challenges faced on underway and the group targets to com- “Moving forward, the group remains
shipment availability caused by the glob- mission the first line by December 2021. optimistic of the longer-term prospects un-
al container shortages as well as temporary NGC 1.5 expansion plans include four derpinned by growing demand for rubber
shutdown of certain production lines as a gloves and ongoing expansion plans,” Har-
preventive measure and safety precaution talega added.
in dealing with Covid-19 cases,” it said.
Meanwhile, in a separate statement, its
On a year-on-year basis, the glove mak- chief executive officer Kuan Mun Leong
er’s net profit skyrocketed from RM114.42 said demand for medical supplies includ-
million, while revenue also jumped from ing nitrile gloves is expected to remain el-
RM778.24 million a year ago. evated, owing to a resurgence of Covid-19
cases in India, South America, the Middle
In a separate statement, the group de- East and Southeast Asia, despite vaccina-
clared a third interim single tier dividend tion programmes having begun.
of 17.7 sen for the full financial year ended
March 31, 2021 (FY21), with the enti- “Heightened demand growth will fur-
tlement date on May 24 and payment on ther be driven by the structural step-up in
June 9, bringing total dividends for the demand, on the back of increased glove us-
year to 31.2 sen per share. age from emerging markets with low glove
consumption per capita and increased hy-
In contrast, Hartalega declared a div- giene awareness, establishing a new base-
idend of 2.05 sen per share in 4QFY20, line for the industry.

Hartalega Holdings Bhd’s quarterly net profit “Against this backdrop, we are com-
mitted to fulfilling our critical role in the
Net pro t (RM mil/bil) 1.119 bil healthcare value chain by continuing to
1200 1.001 bil deliver our high-quality gloves to safeguard
frontliners across the globe. As we ensure
1000 operational continuity, we have put in place
stringent Covid-19 preventive measures to
800 protect our employees and the community.
600 544.96 To further support Malaysia’s fight against
the pandemic, we also contributed RM90
400 219.72 million to the government’s Covid-19 fund
1Q in February 2021,” he said.
200 94.06 103.87 121.27 114.42
4Q At noon break, Hartalega had ris-
0 2Q 3Q 2Q 3Q 4Q en 4.61% or 46 sen to RM10.44, giving
1Q FY2020 FY2021 the company a market capitalisation of
RM35.78 billion.
Source: Bursa Malaysia

WEDNESDAY MAY 5, 2021 7 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 4): Malaysia Malaysia Airlines restructuring,” Khazanah said.
Airlines Bhd’s parent Malaysia Aviation owner Malaysia Today, Izham said MAG believes the avi-
Group (MAG) aims to break even by 2023 Aviation Group
through its Long Term Business Plan 2.0 aims to break ation industry will benefit from government
as the group contends with the Covid-19 interventions which will ensure longer-term
pandemic’s impact on the global aviation even by 2023 sustainability of Malaysia Airlines.
sector, MAG group chief executive officer through Long
Captain Izham Ismail said today. Term Business Citing examples, he said Malaysia has
Plan 2.0 — CEO spearheaded bilateral discussions on trav-
Izham said the domestic travel market el corridors with suitable countries to help
needs reform to be sustainable as condi- BY ADAM AZIZ & SULHI KHALID resuscitate air travel which has been con-
tions are expected to worsen post-Covid-19 theedgemarkets.com tending with the impact of global Covid-19
pandemic. pandemic-driven movement restriction pol-
Justice of England and Wales sanctioned icies to curb the outbreak.
“Airlines’ average fares have not been a scheme of agreement between MAG’s
tracking inflation year-on-year and this has leasing entity, MAB Leasing Ltd, and the He said MAG is looking forward to the
created an unsustainable situation for the majority of MAG’s aircraft operating les- pent-up demand in the travel market, be-
domestic market. sors, following unanimous support from sides factors including Covid-19 vaccina-
the lessors. tion progress and government interventions
“The seats are [in] oversupply [situa- involving reciprocal green lanes between
tion], resulting [in] price wars which have “This represents an important compo- countries to rebuild consumer confidence
created a race to the bottom for all players,” nent of the wider restructuring exercise in the travel market as pandemic concerns
he said during a virtual press conference on which will achieve a reduction in MAG’s linger.
MAG’s business update. liabilities of over RM15 billion. Moving
forward, MAG will focus on working “The biggest challenge now is top line
He said airfares for the domestic market closely with the government and stake- and revenue, under the very weak market
are not driven purely by cost, but also by holders on restarting air travel and pro- environment that we are facing.
overcapacity in the market. moting industry recovery, as well as con-
tinuing cash conservation while capturing “[One of the restructuring’s objectives]
Izham said MAG will continue to serve demand recovery as part of its internal is to ensure that MAG has sufficient cash
the domestic travel market and that MAG balance over the next five years, especially
hopes policymakers will reform the market for the next 12 to 18 months [during which]
while balancing customers’ needs. the market is expected to remain unstable
and, to a certain extent, unpredictable.
Khazanah Nasional Bhd — Malaysia’s
sovereign wealth fund — via MAG owns “That [volatility] has made our for-
100% of Malaysia Airlines. ward-planning and forecasting a challenge,”
Izham said.
Khazanah said in a statement on March Read also: Malaysia Aviation Group de-
4 it continues to provide full support and nies mandating Goldman Sachs to guide
close cooperation in the comprehensive ef- its long-term business plan Click here
forts to ensure the national carrier’s sustain-
ability post-Covid-19 pandemic.

“On Feb 22, 2021, the High Court of

Malaysia Aviation Group says it ‘never had’
M&A conversations with AirAsia amid Covid-19

KUALA LUMPUR (May 4): Malaysia BY ADAM AZIZ & SULHI KHALID prehensive efforts to ensure the nation-
Airlines Bhd’s parent Malaysia Aviation theedgemarkets.com al carrier’s sustainability post-Covid-19
Group (MAG) claimed today it never pandemic.
had merger and acquisition (M&A) talks on MAG’s business update.
with budget airline AirAsia Group Bhd As part of MAG’s long-term business “On Feb 22, 2021, the High Court of
as the aviation sector contended with the Justice of England andWales sanctioned
impact of the global Covid-19 pandem- plan aspiration, Izham said the group is a scheme of agreement between MAG’s
ic-driven movement restriction policies, committed to delivering healthy return leasing entity, MAB Leasing Ltd, and the
which brought the industry to its knees. on investments in 2021 through a holistic majority of MAG’s aircraft operating les-
capital allocation framework to ensure sors, following unanimous support from
MAG group chief executive officer sound investment decisions for the group. the lessors.
Captain Izham Ismail claimed today
MAG “never had such conversations” “We will also engage with policymak- “This represents an important compo-
with AirAsia Group. ers to establish a comprehensive aviation nent of the wider restructuring exercise
market regulation framework that pro- which will achieve a reduction in MAG’s
“If I speak for myself personally, if I motes healthy and sustainable competi- liabilities of over RM15 billion. Moving
am able to restructure the organisation, tion,” Izham said. forward, MAG will focus on working
why would I go and throw ourselves to closely with the government and stake-
another organisation which is trying to Khazanah Nasional Bhd — Malaysia’s holders on restarting air travel and pro-
survive. sovereign wealth fund — via MAG owns moting industry recovery, as well as con-
100% of Malaysia Airlines. tinuing cash conservation while capturing
“It will take a big toll on the original demand recovery as part of its internal
culture of the organisation,” Izham said Khazanah said in a statement on restructuring,” Khazanah said.
today during a virtual press conference March 4 it continues to provide full sup-
port and close cooperation in the com-

WEDNESDAY MAY 5, 2021 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 4): Can-One Can-One gets tain the listing status of Can-One on
Bhd has received a notice of uncondi- takeover offer Bursa Malaysia.
tional mandatory takeover offer from from major
major shareholder Eller Axis Sdn Bhd shareholder at The offer price of RM2.50 per share
to acquire the remaining shares in Can- RM2.50 per share represents a 20.26% discount to Can-
One not owned by Eller Axis and the ul- One’s three-month volume weighted
timate offerorYeoh Jin Hoe for RM2.50 BY WONG EE LIN average market price up until May 3 of
per share. theedgemarkets.com RM3.1352. It is also a 15.82% discount
to Can-One’s last transacted price of
According to the notice of the offer from RM2.97 (May 3), prior to the trading
UOB Kay Hian sent on behalf of Eller suspension of its shares today to make
Axis, which Can-One filed with Bursa Ma- way for this announcement.
laysia today, Eller Axis inked an uncondi-
tional share sale agreement with Genkho Ultimate offerorYeoh is also a non-in-
Candoz Sdn Bhd today to acquire 40.24 dependent non-executive director of Can-
million shares or 20.94% in the metal-can One. He was managing director (MD) of
manufacturer at RM2.50 per share or the company but relinquished the position
RM100.6 million in total, cash. on July 11, 2012 when he was appointed
group MD of Kian Joo Can Factory Bhd,
Prior to the acquisition, Yeoh, the a wholly-owned subsidiary of Can-One.
major shareholder of Eller Axis, held
7.51 million shares in Can-One, repre- He is also currently the group MD
senting a 3.91% stake, while Eller Axis of Box-Pak (Malaysia) Bhd, and the ex-
had 45.59 million Can-One shares or ecutive director of Alcom Group Bhd.
23.73%. The shareholding of the per-
sons acting in concert (PACs) with the The trading of Can-One’s shares will
offeror stood at 23.06 million (11.99%). resume tomorrow. At the last traded price
of RM2.97 apiece, Can-One has a market
With the 20.94% stake buy, the col- capitalisation of RM570.69 million. Over
lective equity interest held by the of- the past year, the counter has climbed
feror and PACs increased to 60.57%, 18.3% from RM2.51.The stock hit a one-
prompting this mandatory offer. The and-a-half-year high of RM3.55 on March
joint offerors, however, intend to main- 18 this year before gradually falling to
below the RM3-level.

KUALA LUMPUR (May 4):YTL Corp YTL Corp’s of our strategy to concentrate on achiev-
Bhd’s subsidiary YTL Cement (Hong unit divests ing a similar position of leadership in
Kong) Ltd has finalised the dispos- our key domestic, export and regional
al of its 100% equity interest in Zhe- cement markets,” said Sock Ping.
jiang Hangzhou Dama Cement Co Ltd business in
(Dama Cement). The disposal is well-aligned with the
China group’s focus on establishing itself as
Dama Cement, which owns a cement an industry leader in the regional ce-
plant in the Lin’an district of the Zhe- BY JUSTIN LIM ment market, said YTL Cement group
jiang Province in China, primarily man- theedgemarkets.com managing director Datuk Seri Michael
ufactures and sells ordinary portland Yeoh Sock Siong.
cement, clinker and related products.
“Dama was our first substantial foray
In a statement, YTL Corp said its into China’s cement industry, a major
98%-owned YTL Cement invested in supplier in Hangzhou.The vital insight
Dama Cement in 2007, and has seen ag- and knowledge that we have gained will
gregate returns of about CNY1.3 billion be used in our plans to expand our op-
(RM827 million) and profits of about erations within Southeast Asia,” he said.
RM250 million from it since.YTL Corp,
however, did not disclose the disposal YTL Corp’s cement business is un-
price for Dama Cement. dertaken through YTL Cement, oper-
ating in Malaysia, Singapore, Vietnam
YTL group executive chairman Tan and Myanmar.
Sri Francis Yeoh Sock Ping said now is
an ideal time for the company to make YTL Cement expanded its Malaysian
an exit from the Chinese investment, operations in 2019 with the RM1.63
given its current “highly attractive val- billion acquisition of a 51% stake in
uation”. Lafarge Malaysia Bhd -- now known as
Malayan Cement Bhd. Following the
“Through our investment in Chi- acquisition and a mandatory general of-
na, the largest cement producer in the fer extended for the rest of the shares it
world, we have been able to enhance does not own,YTL Cement now holds
our existing capabilities and build on 76.98% in Malayan Cement.
our knowledge of the industry. Learning
from its advanced technology, opera- YTL Corp’s shares closed unchanged
tional knowhow, procurement, logistics at 70.5 sen today, bringing it a market
and distribution systems, this exit is part value of RM7.79 billion after 2.46 mil-
lion shares.

WEDNESDAY MAY 5, 2021 9 THEEDGE CEO MORNING BRIEF

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MOHD SUHAIMI MOHAMED YUSUF/THE EDGE

BNM seen
holding key rate

amid spike in
Covid-19 cases

— poll

BY JOSEPH SIPALAN
Reuters

KUALA LUMPUR (May 4): Malaysia’s Barclays said in a research note. on-year in March, its quickest pace in
central bank is expected to leave its key “However, BNM is unlikely to embark nearly four years.
interest rate at a record low on Thursday
to help support the economy’s recovery as on a path of policy normalisation either, as Analysts say the pace of recovery will
coronavirus cases rise, even as it has bene- travel activity remains substantially below also depend on how the coronavirus situ-
fited from strong external demand. pre-pandemic levels.” ation develops.

All 13 economists polled by Reuters saw Barclays said it expected rates to remain While its coronavirus vaccination pro-
Bank Negara Malaysia (BNM) keeping its steady this year and only rise in 2022. gramme is well under way, Malaysia is fac-
overnight policy rate at a historic low of ing a fresh spike in coronavirus cases and
1.75% onThursday.The central bank had Malaysia’s economy saw its biggest full- has reported more than 415,000 infections
cut its benchmark rate by a total of 125 year contraction in over two decades last in total so far, the third highest infection
basis points last year. year as it imposed strict coronavirus curbs rate in the region behind Indonesia and
for most of 2020. Policymakers are now the Philippines.
“We think BNM is more focused on having to balance buoyant exports with
the vaccination programme’s ability to concerns that a spike in coronavirus cases As of Sunday, over 905,000 people have
secure the recovery in the medium term, could derail the recovery. received at least one vaccine dose since
especially given fears that further rate cuts the Southeast Asian nation launched its
could exacerbate financial stability risks,” The economy shrank 5.6% last year — national vaccination programme in Feb-
its worst performance since the Asian Fi- ruary, according to health ministry figures.
nancial Crisis. Exports surged 31% year-

KUALA LUMPUR (May 4):Velesto En- Velesto probing view reflect the uncertainty over the rig’s
ergy Bhd said it is investigating yesterday’s rig incident, long-term availability at this juncture. At
worksite incident involving one of its rigs, this juncture, we think Velesto is unlikely
and is evaluating its options. recovery efforts to return to profitability until FY23. The
ongoing Naga 7 incident, in our view, has delayed
“The rig is covered by insurance and its earnings turnaround by another year,”
recovery efforts are ongoing and moni- BY TAN SIEW MUNG he said.
tored,” the group said in a bourse filing. theedgemarkets.com
According to Liaw,Velesto had recent-
Velesto said the incident involving the erational setback on its Naga 7 rig. ly secured an US$8 million contract from
Velesto Naga 7 rig occurred at the worksite Its analyst Liaw Thong Jung said in a ConocoPhillips for the charter of Naga 7
due to rapid penetration into the forma- to drill up to three wells offshore Sarawak
tion, whilst operating in offshore Sarawak note today he also downgradedVelesto to from the second quarter of 2021. Howev-
for a client. “The rig tilted and subsequent- “sell” from “buy”, and cut its target price er, following this incident, he cut Velesto
ly (today), Velesto Naga 7 submerged at by 63% to 11 sen from 30 sen, following earnings to take into account the lower
the location. Drilling activities have not the earnings revision. utilisation realised from the Naga 7 impact.
commenced and no well has been drilled,”
the group added. “Our revision in earnings and change in “Our model now conservatively assumes
zero utilisation for Naga 7 from May 2021
Velesto said all on-board personnel are to 2023, pending updates on the rig’s oper-
safe on the rescue vessels, and that most ability. Our revised jack-up (JU) utilization
have been transferred to Miri, while the is now at 52%/63%/68% for FY21/22/23
remaining personnel are in the process of respectively (vs. 62%/74%/80% previous-
being transferred. “The company extends ly). That said, we posit that it is still pre-
gratitude to all involved in the evacuation mature to fully write-off Naga 7 for now,”
operation after the incident and the on- he said.
going recovery efforts, including our cli-
ent and all relevant authorities,” it added. He also lowered Velesto’s target price,
valuing it at a lower 0.7 times enterprise
Naga 7 rig incident to delay Velesto value/replacement value of US$90 million
earnings turnaround — Maybank IB on this unforeseen setback.
Maybank Investment Bank Research has
cut Velesto Energy Bhd’s FY21 to FY23 Velesto’s share price closed unchanged
earnings by 58% to 144% due to the op- at 16 sen today, valuing the group at
RM1.31 billion.

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KUALA LUMPUR (May 4): The Dis- Astro andWalt streaming services, giving our customers the
ney+ Hotstar streaming platform, a collab- Disney team up widest variety of entertainment to choose
oration between Astro Malaysia Holdings to launch Disney+ from, value and convenience,” he added.
Bhd and The Walt Disney Company, will Hotstar streaming
be launched in Malaysia on June 1. service in Malaysia According to a CNA report last week,
TheWalt Disney Company said it is “con-
This confirms a report by theedgemar- on June 1 solidating its Media Networks business pri-
kets.com yesterday that Disney+ is coming marily in Southeast Asia and Hong Kong” as
to Malaysia via its own streaming platform BY SYAFIQAH SALIM & part of the company’s “global effort to pivot
and also through working relationships ARJUNA CHANDRAN SHANKAR towards a direct-to-consumer-first model
with platforms such as Astro. and further grow” its streaming services.
theedgemarkets.com
In statements today, the companies said Since its launch in November 2019, Dis-
viewers can enjoy content from several pro- ling entertainment offerings to consumers ney+ has signed up more than 100 million
viders including Disney, Pixar, Marvel, Star in the region. subscribers for its streaming platform and
Wars, the National Geographic as well as a steadily expanded the geographical cover-
wide array of general entertainment series “Malaysians are not only connected, but age of its services to 59 countries around
and films for young adult audiences, and also extremely tech-savvy and they repre- the world, including North America, Eu-
home-grown and Asian hits through the sent some of Disney’s biggest fans in the rope, Asia-Pacific and Latin America.
streaming service. region.We are tremendously excited to be
able to deliver a wide array of content for Meanwhile, Astro also has arrange-
Consumers can subscribe directly to everyone of all ages through our world- ments with other streaming players, name-
Disney+ Hotstar for RM54.90 for three class platform, covering the best from Dis- ly the US’ HBO GO and China’s iQIYI.
months, or through special packages with ney’s brands across a multitude of genres,”
Astro, for access to an extensive collection he said in a statement today. Other than Disney+ originals such as
of content. The Mandalorian and High School Musical:
Meanwhile, Astro group chief execu- The Musical:The Series, Marvel Studios’
Meanwhile, Astro said the streaming tive officer (CEO) Henry Tan said: “We WandaVision, The Falcon and The Winter
service is working towards making it avail- are delighted to aggregate the best of the Soldier and Loki, Disney+ Hotstar has also
able via its Ultra and Ulti connected boxes best to be the undisputed entertainment entered into a series of multi-year agree-
later this year. destination for Malaysians. Our customers ments with leading Malaysian studios to
deserve great entertainment and the addi- support the local film community.
Disney+ Hotstar will be available to its tion of Disney+ Hotstar with our much-
Movies Pack customers for an addition- loved hits, local signatures and unparalleled These multi-year agreements mean that
al RM5 per month, while its non-Movies sports would delight them. Disney+ Hotstar will exclusively offer Ma-
Pack customers may access the streaming laysian movies that will skip theatres and
service via other bundles, said Astro. From “This is a great start to an action-packed launch straight on the streaming service,
today onwards, customers can sign up for year where we will be aggregating subscrip- such as J2: J Retribusi, the explosive ac-
the Movies Pack bundle that comes with tion-based video-on-demand (SVOD) tion-packed sequel to the blockbuster J
Disney+ Hotstar. Revolusi, Zombitopia, Ejen Ali The Movie 2
as well as top-rated local prime-time dra-
General manager of Walt Disney for ma series.
Taiwan, Hong Kong and Southeast Asia
David Shin said this collaboration with As- As of 11.15am today, shares in Astro
tro marks an important milestone for the were 0.98% or a sen higher at RM1.03,
group as it continues expanding its foot- valuing it at RM5.37 billion, with 1.37
print in Southeast Asia to bring its compel- million shares done so far.

KUALA LUMPUR (May 4): Fraser & F&N sees growth in 2QFY21 at RM525.8 million
Neave Holdings Bhd’s (F&N) net profit marginal profit amid a recovery in domestic economic ac-
grew 1.3% to RM103.51 million for its growth in 2Q tivities, especially among hawkers, restau-
second quarter ended March 31, 2021 despite MCO 2.0, rant/café operators and cash-and-carry
(2QFY21) from RM102.17 million a year declares 27 sen channels.“Exports fromThailand also grew
earlier, amid higher sales from a favoura- from greater demand overseas, which helped
ble product mix, as well as more prudent dividend mitigate the slower offtake in Indochina mar-
advertising and promotion (A&P) spend. kets due to strongerThai Baht (which led to
BY WONG EE LIN higher price in trade) and escalating Cov-
Quarterly revenue rose 8.6% to RM1.09 theedgemarkets.com id-19 cases in the region,” said F&N.
billion from RM1.01, its bourse filing to-
day showed.The group declared an interim Malaysia, as there was positive momentum For the first six months of FY21, its
dividend of 27 sen per share for the finan- in on-premise demand after the easing of net profit rose 4.2% to RM240.32 mil-
cial year ending Sept 30, 2021 (FY21), restrictions in early March. lion from RM230.54 million a year ago,
payable on June 16. while revenue rose 2.8% to RM2.17 billion
Additionally, Food & BeveragesThailand from RM2.12 billion. Higher earnings for
F&N attributed the higher sales to the (F&B Thailand) registered 4.3% revenue the period were due to investment tax in-
recovery in the domestic market, double centives at theThai subsidiary, said F&N.
digit growth in exports fuelled by growth
in the Middle East and Africa markets, and On prospects, the group remains cautious
maiden contribution from the Sri Nona of the local and global uncertainties, as the
Companies.This was despite subdued Chi- Covid-19 pandemic situation remains fluid
nese NewYear festivities due to Movement and uncertain, said F&N Chief Executive
Control Order (MCO 2.0) restrictions in Officer LimYew Hoe in a statement.

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NEWS IN BRIEF

KLCCP Stapled Group’s 1Q net profit S P Setia to establish sukuk programme refinance earlier borrowings undertaken to
falls 17.39% to RM146.13m, dragged worth up to RM3b fund this project. HSBC Amanah Malaysia
by retail and hotel segments Berhad is the principal adviser, joint lead
KUALA LUMPUR (May 4): S P Setia Bhd arranger, joint lead manager and shariah
KUALA LUMPUR (May 4): KLCCP plans to set up an Islamic medium term adviser for the programme. S P Setia shares
Stapled Group’s net profit for the first note programme of up to RM3 billion in closed unchanged at RM1.02 today, giving
quarter ended March 31, 2021 (1QFY21) nominal value. The property developer today the group a market capitalisation of RM4.14
fell 17.39% to RM146.13 million from lodged the Sukuk Wakalah Programme billion. — by Justin Lim/theedgemarkets.com
RM176.88 million a year ago, as the with the Securities Commission Malaysia.
pandemic dragged the group’s retail and The programme allows for the issuance
hotel segments. Revenue for the group, of rated and senior unsecured sukuk from
comprising KLCC Property Holdings Bhd time to time, subject to a total outstanding
and KLCC Real Estate Investment Trust amount not exceeding RM3 billion at any
(KLCC REIT), fell 20.37% to RM282.37 point in time, S P Setia said in a bourse filing.
million from RM354.59 million, its bourse Malaysian Rating Corporation Bhd (MARC)
filing showed. The group declared a has assigned a preliminary rating of AA-IS
dividend of seven sen per stapled security with a stable outlook to the programme.
for 1QFY21. The group’s office segment Proceeds from the sukuk will largely be used
— comprising the Petronas Twin Towers, to fund capital injection into the group’s joint-
Menara 3 Petronas, Menara ExxonMobil venture Battersea Power Station project and
and Menara Dayabumi — remained stable
as they are backed by triple net leases Mah Sing buys KL land for RM618m Rohas Tecnic
(TNLs) and long-term, locked-in leases. But mixed development secures RM37m
its retail segment — represented by Suria transmission
KLCC and the retail podium of Menara 3 KUALA LUMPUR (May 4): Mah Sing Group tower job
Petronas — saw delayed recovery with Bhd is buying a plot about two hectare in size
the reimposition of the movement control in Tempat Jalan Genting Kelang, Setapak KUALA LUMPUR
order (MCO 2.0) from Jan 13 to March here for a proposed RM618 million mixed (May 4): Rohas
4, 2021. The same was true for its hotel development comprising residential and Tecnic Bhd
segment with Mandarin Oriental. The retail components. In a bourse filing, Mah has secured a
group anticipates the national Covid-19 Sing said its Nova Century Development transmission line
vaccination programme to foster market Sdn Bhd has inked a conditional sale and fabrication job with
recovery, but foresees the year to likely be purchase agreement with seller Teratai an estimated value
challenging as the pandemic persists. — by Constructors Sdn Bhd to acquire the of RM37 million. The group said in a filing its
Tan Siew Mung/theedgemarkets.com leasehold industrial land with the address has accepted an order from Larsen & Toubro
Lot 27, Jalan Usahawan 5, Kawasan Ltd (L&T) for the fabrication of 500 kilovolt
CIMB Bank to issue HK$610m bond Perindustrian Ringan. “The group will be (KV) Overhead Transmission Towers for the
applying with the relevant authorities for the transmission line connecting a 1,200MW
KUALA LUMPUR (May 4): CIMB Group conversion of land use,” Mah Sing said, adding power generation plant in Pulau Indah to
Holdings Bhd’s indirect 99.99%-owned the proposed development for the site is the Olak Lempit main intake substation. The
CIMB Bank Bhd will issue tomorrow a M Astra, which comprises two blocks of transmission line is about 37km long and
HK$610 million (about RM323.42 million) serviced suites and some retail lots. The land the project comprises the fabrication and
bond under CIMB Bank’s proposed debt is predominantly flat and currently houses supply of lattice towers, it said. The 12-month
scheme of up to US$5 billion (about the Sri Utama International School Kuala project, which started last month, will set a
RM20.59 billion), said CIMB Investment Lumpur. It intends to fund the purchase and new record for the tallest transmission lattice
Bank Bhd, which is facilitating the debt development via a combination of internal tower in Malaysia as it needs to be about
scheme. The medium term note (MTN) funds and bank borrowings.The proposed 140 meters in height to cross above existing
programme pays an annual interest rate acquisition is expected to be completed transmission lines from Pulau Indah to Olak
of 0.88% and will mature on May 5, 2024. in the fourth quarter of 2021. — by Arjuna Lempit on the mainland. — by Tan Siew Mung/
CIMB Investment Bank did not say how Chandran Shankar/theedgemarkets.com theedgemarkets.com
CIMB Bank plans to use proceeds from
the bond issue. The HK$610 million bond Tomei’s 1Q net profit triples y-o-y as Malaysians buy more gold jewellery
will be listed on Bursa Malaysia but not
quoted for trading under the exempt KUALA LUMPUR (May 4): Tomei Consolidated Bhd’s net profit for the first quarter
regime, according to CIMB Investment ended March 31, 2021 (1QFY21) jumped more than three times year-on-year (y-o-y)
Bank’s filing yesterday with Bank Negara to RM13.76 million, from RM4 million, on higher revenue. Quarterly revenue almost
Malaysia’s (BNM) Fully Automated System doubled to RM244.15 million from RM127.8 million a year before, mainly due to an
for Issuing/Tendering (FAST) website. increase in consumers’ demand, particularly for yellow gold jewellery. On a quarter-on-
Dealers for the bond are The Hongkong quarter basis, Tomei’s net profit also increased by 17.88% from RM11.67 million while
and Shanghai Banking Corp Ltd (HSBC) revenue was up 45.47% from RM167.84 million, also due to better consumers’ demand.
and CIMB Bank’s Labuan offshore branch. On prospects, the group said it will remain vigilant and take necessary measures to
“The notes are expected to be rated A3 by ensure that it achieves a reasonable level of profitability for the year. — by Justin Lim/
Moody’s,” CIMB Investment Bank added. — theedgemarkets.com
by Tristan Dielenberg/theedgemarkets.com

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Will a rising tide lift all boats?

These are the popular opinions BY KENNETH SIMLER, SHAKIRA TEH High inequality in Malaysia
and beliefs among Malaysians SHARIFUDDIN & ZAINAB ALI AHMAD One must then ask, what is the driving force
who participated in our 2019 behind these less optimistic sentiments? It
jointWorld Bank-University of The World Bank is worth noting that while the country has
Malaya qualitative study on living stand- achieved great progress in poverty reduc-
ards in Malaysia.The Kuala Lumpur sky- ...In the past, a total tion and economic inclusion since 1970,
line is emblematic of a modern, rich city, income of RM800– growth has become less inclusive in recent
but closer to the ground, a conversation RM1,000 could support years.There are many factors contributing
with the Grab car driver tells a different six people or more. to the perception that growth has not bene-
story of how most Malaysians struggle in Nowadays, you can fited all citizens equitably, including slower
their daily lives. barely support three income growth especially among younger
people, and even that is and lower-skilled workers, inequitable ac-
Even before the pandemic, there was a a nightmare... Malaysia cess to quality education, and inadequate
growing sense among the rakyat that the has developed, but social safety nets, particularly for the poor
headline successes of Malaysia’s economy the rakyat [people] and vulnerable. At about 0.7 percent of
were not translating into real improve- has been left behind GDP, Malaysia’s spending on social safety
ments in their daily lives. A previous study because incomes have nets is much lower than almost all countries
done by the World Bank on Malaysia’s that have graduated to high-income status
cost of living challenges showed that many not increased.” since 2000, which generally spend about
households need dual incomes and some 1.5–3.4 percent of GDP.
even multiple jobs to make ends meet, er position than its predecessors. Com-
suggesting that most people were not bet- pared to those countries, Malaysia is ap- Of course, while the most straight-
ter off despite rapid economic growth in proaching the high-income transition with forward and obvious solution would be
past decades. higher inequality, limited social spending, for the government to increase its social
and a shrinking fiscal space.A high-income spending, in reality, this is much easier
Our latest report, Aiming High: Nav- country status that is not matched by ele- said than done. The government’s large
igating the Next Stage of Malaysia’s De- vated economic security and greater overall commitments to operating expenditures
velopment, argues that while Malaysia is well-being for all Malaysians would be an such as salaries, pensions, and debt ser-
expected to reach the important mile- achievement only on paper, and certainly vice payments constrains its ability to al-
stone of becoming a high-income econ- not a meaningful one. locate more for social spending as well as
omy within the next 3–7 years, the bigger spending on development. As such, this
challenge is for the country to ensure that severely limits the potential role of fiscal
as the nation prospers, so do its citizens. policy as a redistributive tool to promote
shared prosperity and greater equality
Over the past 30 years, only 33 coun- among all Malaysians.
tries have made the transition to high-in-
come status, and in many ways, Malaysia CONTINUES ON PAGE 13
is approaching the transition from a weak-

REUTERS

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KUALA LUMPUR (May 4): Former Najib files Sequerah, who is now presiding over the
prime minister Datuk Seri Najib Razak fresh appeal to 1MDB-Tanore trial, and the decision was
has made another appeal at the appellate recuse Sri Ram upheld by both the Court of Appeal and
court against the High Court’s decision from leading the Federal Court.
to dismiss his application to disqualify prosecution in
appointed prosecutor Datuk Seri Gopal 1MDB audit High Court Judge Justice Datuk Seri
Sri Ram from leading the prosecution in tampering trial Mariana Yahya also rejected a separate
the ongoing 1Malaysia Development Bhd judicial review application to remove Sri
(1MDB) audit report tampering trial. BY EMIR ZAINUL Ram made by both Najib and his lead de-
theedgemarkets.com fence counselTan Sri Muhammad Shafee
This was confirmed by deputy public Abdullah, who is also facing four money
prosecutor Ahmad Akram Gharib, who told in January 2018 by former prime minister laundering charges involving up to RM9.5
theedgemarkets.com that the petition of ap- Tun Dr Mahathir Mohamad to persuade million alleged to be funds from Najib.
peal was filed by Najib’s lawyers yesterday. him to arrest then prime minister Najib.
The decision is currently being appealed
“The next case management date will The judge also found that there was against in the Court of Appeal.
be on June 1,” he said, following case man- no evidence to support the applicant’s al-
agement for the appeal before Court of Ap- legation that Sri Ram was involved in in- In the 1MDB audit tampering trial, Na-
peal senior deputy registrar Mohd Khairi itial investigations into making the case jib was charged with abusing his power as
Haron earlier today. against Najib and, as such, the accusation the prime minister and finance minister,
remained “purely hypothetical”. for allegedly ordering changes made to the
On Feb 15, High Court Judge Justice 1MDB audit report prepared by the Nation-
Mohamed Zaini Mazlan had rejected the It is worth noting that Najib had already al Audit Department before it was finalised
application made by Najib to recuse the for- made numerous attempts to remove Sri and tabled to the parliament’s Public Ac-
mer federal court judge from leading the Ram as the lead prosecutor in all the trials counts Committee, so as to avoid any civil
prosecution team in the 1MDB audit tam- involving him but to no avail. action or criminal prosecution against him.
pering trial.
His application was first dismissed by The charge was filed under Section
In his judgement, Justice Mohamed High Court Judge Justice Collin Lawrence 23(1) of the Malaysian Anti-Corruption
Zaini said Najib’s claim that Sri Ram was Commission (MACC) Act 2009. If con-
biased against him was “without basis and victed, he can be fined at least RM10,000
misplaced”. or five times the amount of gratification
involved, and jailed up to 20 years.
The claim of biasedness stemmed from
the “revelation” made by former attor- Former 1MDB president Arul Kanda
ney-general (AG)Tan Sri Mohamed Apan- Kandasamy, meanwhile, has been charged
di Ali in June last year, which was later filed with abetting Najib under Section 28(1)
as an affidavit in support of the recusal ap- of the same Act, an offence that carries the
plication, that Sri Ram was sent to see him same punishment if found guilty.

FROM PAGE 12 ficient, including expenditure on critical been a greater call in recent times, espe-
areas such as education. Malaysia spends cially since the COVID-19 pandemic, for
Limited effectiveness of social spending a large share of the national budget on ed- governments to include wealth taxes as
But it is not just about spending more. It ucation, yet learning outcomes have con- part of their revenue frameworks.
is also about spending smarter. For social sistently fallen below expectations.
spending to be effective, it has to be target- It is clear that the tax framework in Ma-
ed to the right groups and at a meaning- Malaysia’s shrinking fiscal space laysia can and should be made more pro-
ful amount. In Malaysia, nearly everyone For there to be money to spend, the gov- gressive. Beyond the mechanics of the frame-
in the bottom 20 percent (B20) income ernment needs to ramp up its revenue work itself, efforts to raise public awareness
group receives some form of social assis- collection. Since 2012, Malaysia’s reve- and to inform the rakyat about taxes and
tance, but they enjoy only 29.5 percent nue collection as a percentage of GDP the corresponding benefits of government
of the total program benefits. In contrast, has been on a persistent decline, and this spending should be instituted. Responding
a large share of social transfers ends up has squeezed the government’s ability to to the 2020WorldValues Survey on whether
in the M40 (37.2 percent) and the T20 provide the high-quality public services it is an “essential characteristic of a democracy
(9.5 percent) households. Moreover, cer- and social safety nets that the expanding that governments tax the rich and subsidize the
tain types of social spending, such as the middle-class increasingly expects. In 2019, poor”, unlike in many other countries, most
blanket fuel subsidy, also disproportion- Malaysia’s revenue collection stood at 17.4 Malaysians had an indifferent view. Con-
ately benefit higher-income households. percent of GDP, well below the average currently, Malaysia needs serious efforts to
A study done by Bank Negara Malaysia figure for upper-middle-income countries improve its accountability and transparency
(BNM) back in 2014 estimated that the (28 percent) and high-income countries to raise the rakyat’s confidence in the tax
B20 households only receive 4 percent of (36 percent).The government severely un- and spending framework.
the fuel subsidy, while the T20 receive 42 der-collects in key revenue areas such as
percent. In other words, for every Ringgit personal income and consumption taxes, This principle of an enhanced social
that the government spends on fuel subsi- in part from an expansive system of tax de- contract is synthesized in our report.The
dies, only 4 cents goes to the lower income ductions and exemptions across all income state acts to meet the needs of the popu-
households, thus increasing inequalities levels. Not only that, with the exception of lation credibly and effectively, and in ex-
rather than reducing them. the real property gains tax, Malaysia does change, the rakyat must be empowered to
very little to tax capital gains and there is exercise their rights and duties as citizens
More generally, Malaysia’s spending in no wealth tax in place. Globally, there has of the country. It is time for Malaysia to
social sectors has been shown to be inef- aim high and ensure that the rising tide
lifts all boats.

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High Court orders Jho Low’s right-hand
man ‘Fat Eric’ to pay RM68m in tax arrears

KUALA LUMPUR (May 4): The High BY TIMOTHY ACHARIAM Tan’s involvement in 1MDB
Court here had today ordered Eric Tan theedgemarkets.com It was previously reported thatTan, a con-
Kim Loong, who is also known as “Fat fidante of missing businessman Jho Low,
Eric”, to pay almost RM68 million in tax fails to send legal representation despite had given his statement to the Malaysian
arrears from 2010 to 2013 to the Malaysian being served with court orders. Anti-Corruption Commission (MACC)
government following legal action against in 2015, where he claimed that he did not
Tan by the Inland Revenue Board (IRB). The certificate of non-appearance, know the US$681 million “donation” re-
which was also sighted by theedgemarkets. cipient was former prime minister Datuk
According to the judgment sighted by com, revealed that a notice to appear in Seri Najib Razak.
theedgemarkets.com, Tan is ordered to pay court was stuck at his registered address
RM67,996,891.87 inclusive of annual in- inTaman Pusat Kepong on March 29 this He claimed that he was the alleged ben-
terest. He was also ordered to pay costs year.The lawyers had also advertised this in eficial owner of several companies which
amounting to RM2,000. a local newspaper on March 31 this year. funnelled billions of ringgit to Najib’s per-
sonal accounts from 2011 to 2015.
It was reported that Tan is 1Malaysia Tan owes the government RM2.706
Development Bhd (1MDB) scandal al- million for 2010, RM22.09 million for The evidence was revealed during
leged mastermind Low Taek Jho’s right- 2011, RM35.479 million for 2012 and the SRC International Sdn Bhd trial last
hand man. Low is popularly known as RM1.538 million for 2013 through no- March, when it was revealed MACC in-
Jho Low. tices issued on Sept 30, 2020. vestigating officer Mohd Hafaz Nazar pur-
portedly recorded Tan’s statement in the
Today, High Court Deputy Registrar The notices were sent to his last known palace of King Abdullah Abdulaziz in Ri-
Farah Shuhada Ramli meted out the judg- address on Nov 24 last year and there has yadh on Nov 29, 2015.
ment after the High Court had allowed an been no reply.
application from IRB lawyers for a judg- Tan was purportedly appointed a nom-
ment in default of appearance. “As the defendant had failed to pay inee of the late King Abdullah Abdulaziz
the amount owed as stipulated in the no- Al Saud, Prince Faisal, Prince Saud and
As a result of Tan’s absence, the High tice under Section 103 of the Income Tax other members of the royal family via a
court issued a certificate of non-appear- Act 1967, a 10% surcharge is imposed letter dated Aug 3, 2009.
ance before it meted out the judgment on the unpaid amount resulting in the
against him. additional charges of RM270,602.18 On June 12, 2018, the MACC revealed
(2010), RM2,209,094.99 (2011), Tan as the purported signatory of numer-
Tan has been at large since 2018 and RM3,547,991.14 and RM153,847.30 ous bank accounts overseas through which
did not send any legal representation for are imposed,” IRB’s statement of claim billions of ringgit that originated from
this case. against Tan read. 1MDB were laundered.

Farah said Tan is also required to pay “The Malaysian government is entitled One of the accounts was for Tanore Fi-
5% interest a year starting today for every to get the unpaid assessment taxes that are nance at Falcon Bank in Singapore, through
year he does not pay the RM67.9 million owed and the additional charges.” which an alleged US$681 million were
in tax arrears to the government. moved to and from Najib’sAmBank account.
theedgemarkets.com has reached out to
Under the law, a judgment in default lawyers from IRB for comment and is The authorities had issued warrants of
of appearance or representation is when awaiting their response. arrest on both Low and Tan.
a defendant fails to appear in court and

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KUALA LUMPUR (May 4): Tun Dr Dr M to former Several media reports said Khalid is
Mahathir Mohamad has already respond- IGP Khalid over seeking RM10 million from Dr Mahathir
ed to a letter of demand (LOD) issued by for defamation, following the former pre-
former inspector-general of police (IGP) defamation mier’s allegations last month.
Tan Sri Khalid Abu Bakar that accused claims: I’ll see
the former premier of defamation over his you in court According to the alleged defamatory
claim that there was a leak in the 1Ma- statement by Dr Mahathir, the fourth and
laysia Development Bhd (1MDB) task BY HAFIZ YATIM seventh prime minister of Malaysia, there
force in 2015, which the senior politician theedgemarkets.com was a delay in taking action earlier against
apparently attributed to Khalid. former prime minister Datuk Seri Najib
Razak because Khalid leaked information
Dr Mahathir’s lawyer Mior Nor Haidir on the progress of the investigation from
Suhaimi of Messrs Haidir & Co told th- the task force.
eedgemarkets.com that the former pre-
mier had already filed his response to Khalid sent the LOD, dated April 22,
the LOD. through Messrs Gunaseharan & Linda,
seeking an apology within seven days.
“Tun will issue a statement soon,” he
said, adding that more information will The former IGP has also denied Dr
come later. Mahathir’s allegations, which he de-
scribed as untrue, defamatory and had
The former premier then went to tarnished his reputation.
Twitter this afternoon, where he con-
firmed that he had received the LOD Khalid also asked Dr Mahathir to with-
from Khalid, and wrote that he would draw his statement, which had been pub-
see Khalid in court. “I’ve instructed my lished on several news portals, as it affects his
lawyers to respond to it. I will see him reputation as a former IGP. He also sought
in court,” the former premier said on his an open apology to be published on the
official Twitter page. former premier’s social media accounts on
Facebook, Instagram and other platforms.

MACC will ti-hopping laws do not exist. Project cartel:
only investigate “This is also not an offence. The MACC
party-hoppers if
money is involved MACC will only investigate on any evi- monitoring govt
dence of money offerings such as when departments
Bernama trying to gain support,” he told reporters
at the strategic cooperation programme Bernama
KUALA LUMPUR (May 4): The Ma- between MACC and the National De-
laysian Anti-Corruption Commission partment for Culture and Arts here today. KUALA LUMPUR (May 4):The Malaysian
(MACC) will only investigate politicians Anti-Corruption Commission (MACC) is
who switched parties if money was in- On April 30, former inspector-gener- monitoring several government departments
volved said MACC Chief Commissioner al of Police Tan Sri Abdul Hamid Bador suspected of being involved in a cartel mo-
Datuk Seri Azam Baki. urged the commission to investigate pol- nopolising the bulk of government contracts.
iticians who switched parties which he
Azam said politicians were free to claimed involved elements of corruption. MACC chief commissioner Datuk Seri
jump parties as there are no laws that Azam Baki said the monitoring with the
prohibit them from doing so as an- On Abdul Hamid’s call to conduct an cooperation of the Ministry of Finance
investigation into the interference with (MoF) would scrutinise any procurement
the police force by a minister, Azam said process made by the departments.
it was beyond MACC’s jurisdiction to
conduct such investigations. “So far, there are no findings because
monitoring is being carried out and we view
“This involves the internal issues of the project cartel case seriously,” he told re-
the security forces involved, so let the porters after attending the National Depart-
police solve it themselves,” he said. ment for Culture and Arts (JKKN) strategic
cooperation programme here today.

Meanwhile, Azam said the investiga-
tion paper over alleged abuse of power in
Prasarana Malaysia Bhd had been sub-
mitted to the Attorney-General’s Cham-
bers (AGC) two weeks ago.

“We submitted the investigation pa-
per two weeks ago and are still waiting
for their (the AGC’s) decision for any
further action,” he said.

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LONDON/WASHINGTON (May 4):The US proposes G-7 for Boris Johnson’s government is to avoid
Group of Seven nations is considering a coordination to framing the G-7 as anti-China under his
US proposal to counter what the White counter China’s presidency.
House sees as China’s economic coercion. economic might
The UK has left the EU and wants to
A paper was circulated ahead of a two- BY ALBERTO NARDELLI, NICK WADHAMS, strike trade deals of its own around the
day meeting of G-7 foreign ministers in JOHN FOLLAIN & KITTY DONALDSON world, including with the US and India.
London, according to officials who de- Bloomberg European nations are also seeking to walk
clined to be identified as the talks are pri- a fine like between holding China to ac-
vate. A discussion about China onTuesday standoff with China.The US is still a fair count on its human-rights record, while
was led by US Secretary of State Antony bit more hawkish than the EU when it not alienating a key economic partner.
Blinken, who was also expected to raise comes to Beijing.
allegations of forced labor in the Xinjiang Also on the agenda is a proposal to set
region. The State department declined to com- up a group called “Friends of Hong Kong”
ment. to share information and concerns about
The US wants a consultation mecha- the former British colony, according to a
nism that would involve the G-7 — as well As host of the G-7, the UK seeks to diplomat familiar with the matter. China
as other key stakeholders — to ensure a strike a balance on China, calling out its last year imposed a sweeping national se-
coordinated response to China’s moves alleged human rights abuses while keep- curity law on Hong Kong last year in the
and with the aim of boosting the resilience ing the door open to areas of cooperation wake of anti-government protests in 2019.
of G-7 nations, according to a diplomat. such as on climate change.The challenge
Other issues under discussion include
The initiative coincides with a hard- Myanmar, Russia, Ukraine and an agree-
ening of Germany, Italy, and France — ment on a rapid response mechanism to
the three European Union countries that counter disinformation that is expected to
participate in the G-7 — as they begin be adopted as an annex to the final joint
to align with the US administration in its statement.

US trade gap
widened to fresh
record of US$74.4

bil in March

BY ERIC MARTIN, KRISTY SCHEUBLE
& SOPHIE CARONELLO
Bloomberg

WASHINGTON (May 4): The US trade The blockage of the Suez Canal by a Digging deeper
deficit widened to a new record in March, as massive container ship upended global trade The value of automotive-vehicle imports
the value of imports surged to a fresh high. in March caused further trade complica- advanced 7.3% to US$30.2 billion.Vehi-
tions, stranding some 90 bulk carriers and cle exports increased 7.2% to US$12.8
The gap in trade of goods and servic- causing a rethinking of typical routes. billion.
es expanded to US$74.4 billion in March
from a revised US$70.5 billion in February, Automakers have cut production after With lumber prices reaching fresh
according to Commerce Department data a surge in orders for items such as smart- records amid a construction boom and
released Tuesday. That matched a median phones,TVs and computers left less capac- housing shortage in the US, the value of
estimate in a Bloomberg survey of economists. ity for a stronger-than-expected rebound imports of the building material surged
in vehicle demand. President Joe Biden is to a record US$1.29 billion in March.
Imports rose 6.3% to a record US$274.5 proposing US$50 billion for semiconduc-
billion, while exports climbed 6.6% to a tor manufacturing and research as part of The merchandise-trade deficit rose to
more than one-year high to US$200 billion. a push to address the shortage. an all-time high of US$91.6 billion, while
the nation’s surplus in services trade eased
Demand from American consumers Carmakers are pushing for a portion of to US$17.1 billion, the lowest since Au-
stuck at home during Covid-19 has been the money to be reserved for vehicle-grade gust since 2012.
sending US imports to highs. Ports have chips, warning of a potential 1.3 million
been overwhelmed after the sudden stop- shortfall in car and light-duty truck pro- The US goods shortfall with China
page of trade at the start of the pandemic duction in the US this year, if their industry widened in March to US$36.9 billion on a
last year and then the rush of purchasing that isn’t given priority. seasonally adjusted basis, the widest since
followed, even as exports remain sluggish. December 2018.

Container issues
Freight rates soared after the trade boom
late last year caught container producers off
guard, sending them scrambling to meet a
surge in demand.

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LONDON (May 4):The Organization of Pe- OPEC keeps a day to 1.14 million a day as a budget dis-
troleum Exporting Countries (OPEC) kept crude production pute threatened attempts to fix war-damaged
crude production steady in April, ahead of a infrastructure.
planned revival of supplies scheduled to be- steady before
gin this month. planned increases However, by the end of the month its state
oil firm allocated cash to resolve technical
OPEC pumped an average of 25.27 mil- BY GRANT SMITH & JULIAN LEE problems, and restrictions that had been im-
lion barrels a day last month, about 50,000 Bloomberg posed on an eastern port were lifted.
a day less than in March, according to a
Bloomberg survey. A setback for Libyan ex- biggest member, continued to make extra The disruption in Libya was in any case
ports was largely offset by further increases cutbacks in April, pumping 8.11 million bar- largely compensated by a further increase
from Iran. rels a day. in Iran’s output.The country added 60,000
barrels a day to reach 2.41 million a day, the
The group and its allies — which slashed The figures are based on ship-tracking highest level in two years.
production when the pandemic struck last data, information from officials, and estimates
year — are gradually restoring about a quar- from consultants including Rystad Energy AS, The Islamic republic has bolstered output
ter of their halted supplies over the next three JBC Energy GmbH, and Petro-Logistics SA. by roughly 20% since the end of last year as
months, to satisfy a recovery in global de- Exceptions buyers in China gain confidence and while it
mand.They will phase in just over two mil- The biggest fluctuations in April were seen in resumes diplomatic relations with US Pres-
lion barrels a day through to July, beginning OPEC members exempt from the agreement ident Joe Biden after the acute crackdown
with 600,000 a day this month. to restrain output. pursued by his predecessor.

World fuel consumption is on the mend Libya, which has managed to revive pro- Iran and the US are making progress with
from the blow inflicted by coronavirus de- duction since late last year following a truce negotiations to revive a nuclear accord which,
spite the latest outbreak in India, led by a in its internal conflict, suffered a slight set- if successful, could remove American sanc-
vigorous recovery in China and the USWall back. Its output retreated by 80,000 barrels tions on Tehran’s oil sales and boost output
Street banks such as Citigroup Inc expect by a further 1.5 million barrels a day.
global demand to be back above pre-virus
levels this summer. If an agreement is reached, the extra sup-
plies could pose an issue for Saudi Arabia
Still, the survey showed OPEC maintained and other OPEC+ members as they seek to
its discipline while waiting for the demand drain the remnants of the glut that arose last
rebound to kick in. Saudi Arabia, the group’s year. The 23-nation alliance is next due to
meet on June 1.

DUBAI (May 4): State-run oil producer Sau- Saudi Aramco Aramco would possibly prefer to keep
di Aramco beat analysts’ forecasts onTuesday beats quarterly dividends stable, particularly in light of
with a 30% rise in first-quarter net profit and profit forecast, some uncertainty around the Shareek or
maintained its dividend payout, helped by Partner programme by the Saudi govern-
strong oil prices. maintains ment, he said.
dividend
Earnings by global energy companies such The programme encourages Saudi com-
as Exxon Mobil have climbed on the back of BY HADEEL AL SAYEGH, SAEED AZHAR panies including Aramco to lead private sec-
rising crude prices, which are up by about & ALEXANDER CORNWELL tor investments in the domestic economy.
a third this year, as fuel demand recovers Reuters
from the pandemic and as a global surplus HSBC, in an equity note to clients, said
of crude shrinks. other producers, has cut output to support the move could restrict headroom to boost
prices but agreed on a plan in April to start dividends in the next few years.
“Given the positive signs for energy de- gradually easing those curbs from May 1.
mand in 2021, there are more reasons to be Aramco’s average total hydrocarbon pro-
optimistic that better days are coming,”Amin Aramco, which reduced its output as part duction came in at 11.5 million barrels per
Nasser, chief executive of the world’s top oil of that pact and as a result of Saudi Ara- day of oil equivalent in the first quarter of
exporter, said in a statement. bia’s additional voluntary production cuts, 2021.That included 8.6 million barrels per
said global demand for petroleum products day of crude oil.
“And while some headwinds still remain, was recovering from its lows in 2020 but re-
we are well positioned to meet the world’s mained below pre-pandemic levels. Saudi Crown Prince Mohammed bin
growing energy needs as economies start to Salman has said more Aramco shares could
recover,” he said. Aramco declared a dividend of US$18.8 be sold in the next year or two, including
billion for the first quarter, to be paid in the to international investors. He has said the
Net income rose to US$21.7 billion for second quarter, in line with company guid- kingdom is in talks to sell 1% to a leading
the quarter to March 31 from US$16.7 bil- ance of a US$75 billion dividend for this year. global energy company.
lion a year earlier. Aramco was expected to
post a net profit of US$19.48 billion, accord- “Aramco’s dividend commitment is al- Read also:
ing to an average of estimates by five analysts. ready pretty ambitious, particularly given ConocoPhillips profit tops as travel
the continued volatility in the market,” said demand boosts oil prices
Aramco, which listed in 2019 with the sale Dmitry Marinchenko, oil and gas analyst at “Higher crude prices and deep cost cuts
of a 1.7% stake mainly to the Saudi public Fitch Ratings. implemented last year at the peak of a
and regional institutions, said earnings were downturn are helping US oil and gas
boosted by stronger crude prices and high- companies deliver improved first-quarter
er refining and chemicals margins, helping profit and cash flow.”
offset lower production. Click here

The OPEC+ group, the alliance that
groups the Organization of the Petroleum
Exporting Countries, Russia, and several

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IATA: Aircargo IATA director-generalWillieWalsh said Infineon expects
demand air cargo continues to be the bright spot for 2.5 million
aviation and airlines are taking all measures
reaches zenith to find the needed capacity. ‘lost cars’ due to
in March chip shortage
According to IATA, a month-on-month
Bernama demand increase with volumes up 0.4% in BY GILES TURNER & DEBBY WU
March over February 2021 levels. Howev- Bloomberg
KUALA LUMPUR (May 4): The Inter- er, the growth was slower than the previ-
national AirTransport Association (IATA) ous month, which saw demand increasing (May 4): German semiconductor
reported that global demand for air cargo by 9.2% compared with February 2019. manufacturer Infineon Technologies
in March 2021 continued to outperform AG said about 2.5 million cars won’t
pre-Covid-19 levels (March 2019), with Meanwhile, the association said new be produced in the first half of 2021
demand up by 4.4%. export orders are among the underlying due to ongoing supply chain shortages.
economic conditions that remain support-
The association said the demand in ive for air cargo. Infineon is a major supplier to au-
March reached the highest level recorded tomakers, who have been struggling
since the data for global air cargo markets “Besides export orders, delivery times for to obtain chips after cutting back or-
series began in 1990. manufactured goods are increasing which ders due to the pandemic. Now, with
normally indicates increased demand for demand for both consumer-electron-
air cargo in efforts to reduce shipping time. ics companies and cars roaring back,
companies like Infineon are ramping
“Global trade rose 0.3% in February up supply.
— the ninth consecutive monthly increase
and the longest continuous growth in more “There are roughly 1.5 million cars
than two decades — is also supporting de- not being built in the first quarter, and
mand for air cargo,” it said. 1 million vehicles not being built in
the second,” Chief Marketing Officer
Singapore’s Singapore’s Changi, world’s best airport, Helmut Gassel said in a call with an-
Changi, world’s markets debut bond alysts on Tuesday. “That’s, we think,
the best estimate that currently exists.”
best airport,
markets debut Infineon posted its results Tuesday,
which were boosted by strong demand,
bond but it warned of continued bottlenecks
in a manufacturing supply chain that’s
BY AMEYA KARVE Like airports around the world, Changi running at “full speed.”
Bloomberg has been battered by Covid-19 causing air
travel to tumble.The firm said in January it “The semiconductor market is
SINGAPORE (May 4): Singapore’s airport, registered 11.8 million passengers in 2020, booming,” said Reinhard Ploss, chief
considered the world’s best flight hub, has an 83% slump from a year earlier. executive officer of Infineon. However,
started marketing its maiden bond, seeking he added that there are “bottlenecks in
to raise funds as regional peers prepare for a Moody’s Investors Service said Changi’s those segments where we depend on
possible improvement in the travel industry cash buffer remains strong despite a dip in its chips supplied by foundries, especially
due to vaccine rollouts. holdings recently to nearly S$1.9 billion by the in the case of automotive microcon-
end of 2020.The cash balance and additional trollers and IoT products.”
Changi Airport Group Singapore Pte liquidity will be more than sufficient to cover
Ltd looks to raise as much as S$500 million its likely capital expenditure needs of about On Monday, Intel’s CEO said the
(US$375 million) from its 10-year Singa- S$900 million over the next 12 months and global semiconductor shortage roil-
pore dollar offering and the final price guid- debt prepayment of around S$300 million in ing a wide range of industries like-
ance for the securities is 1.88%, according 2021, RayTay, a Singapore-based senior vice ly won’t be resolved for a few more
to a person familiar with the matter. It was president at Moody’s, said in a note. years. Ford Motor Co. said Monday
voted the world’s best airport in May 2020 it will halt production at its German
for an eighth consecutive year, according Read also: plants for several weeks due to a lack
to a ranking by air transport rating firm Lufthansa CEO pitches US$6.6b capital of semiconductors.
Skytrax. increase to investors
“Deutsche Lufthansa AG asked The shortages as meant strong
Changi’s first bond sale would follow last shareholders for permission to raise 5.5 earnings for major suppliers. Last
week’s US-dollar offering from South Ko- billion euros (US$6.6. billion) in fresh week rival STMicroelectronics NV
rea’s Incheon International Airport Corp and capital, calling it a necessary step to repair reported strong demand for automo-
Hong Kong’s Airport Authority note sale in the stricken carrier’s balance sheet after the tive and power products in the first
US currency earlier this year.Those debt deals coronavirus pandemic punctured a decades- quarter.
met with soaring investor demand: Incheon’s long boom in air travel.”
US$300 million note received over sixfold Click here STMicro’s CEO Jean-Marc Chery
bids from bond buyers, while Airport Au- said automotive demand “rebounded
thority’s orders were more than five times from Q4 2020 much faster than antic-
its issue size of US$1.5 billion. ipated and it has caused supply chain
constraints across the entire semicon-
ductor industry.”

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UK factory raw materials — factors which sometimes Ford, BMW lead
activity expands indicate an imminent pick-up but which US$130 mln
are currently hampering growth.
at fastest rate investing round
since 1994 — PMI “The sector remained beset by sup- in solid-state
ply-chain delays and input shortages ...
BY DAVID MILLIKEN which contributed to increased purchasing battery startup
Reuters costs and record selling price inflation,”
IHS Markit said. BY BEN KLAYMAN
LONDON (May 4): British manufacturing Reuters
activity grew at the fastest pace in almost Price pressures are on the radar of the
27 years last month, amid supply chain Bank of England as it finalises new fore- (May 4): Ford Motor Co and BMW
delays and shortages of raw materials, as casts and policy decisions ahead of their AG are leading a US$130 million fund-
businesses tried to make up for ground lost release on Thursday, though the central ing round in a solid-state battery start-
during the coronavirus pandemic. bank is likely to look through price rises up, Solid Power, as carmakers push to
caused by short-term disruptions. lower the cost of electric vehicles by in-
The IHS Markit/CIPS Purchasing vesting in the development of affordable
Managers’ Index (PMI) for manufactur- A narrower measure of manufacturing but powerful rechargeable batteries, the
ing activity rose to 60.9 in April from 58.9 output alone showed weaker growth than companies said on Monday.
in March, slightly above an earlier flash the broader activity index. Output grew
estimate of 60.7 and its highest reading faster in August when many manufactur- The Series B investment round,
since July 1994. ers had not long reopened after Britain’s which includes venture capital firmVolta
first lockdown. EnergyTechnologies, allows Solid Pow-
New orders rose at the fastest pace since er to expand in-house manufacturing
November 2013, and two-thirds of busi- Britain’s economy shrank by almost capabilities and positions the battery
nesses expect production to be higher in 10% last year — the biggest fall in output maker to eventually supply future EVs,
a year’s time. in more than 300 years — and even with possibly by the end of the decade ac-
rapid growth this year it may take until cording to BMW battery cell technology
But the index was also lifted by length- 2022 for it to regain its pre-crisis size, a chief Peter Lamp. Solid Power declined
ening delivery times and rising costs of slower rebound than the United States. to say at what level the funding round
values the company.
Manufacturers are still dealing with the
knock-on impact of Covid-19 disruptions Carmakers are racing to develop EVs
which have increased shipping costs and amid tightening CO2 emission stand-
led to shortages of key components such ards in Europe and China.
as microchips used for car electronics.
Solid-state battery technology involves
OSLO (May 4): Norway’sTelenor wrote off Telenor posts 1Q a high-capacity energy storage device that
the value of its Myanmar operation in light loss after writing improves on lithium-ion batteries, replac-
of the country’s deteriorating security and ing the liquid or gel-form electrolyte with
human rights situation, plunging the group off Myanmar a solid, conductive material.Among other
into a first-quarter (1Q) loss and sending its business benefits, the new technology offers more
shares lower onTuesday. energy density and better safety due to
following coup a lack of flammable components. Solid
While it will continue to operate in Myan- Power has said its technology can deliver
mar,Telenor’s mobile business in the Asian BY VICTORIA KLESTY & TERJE SOLSVIK 50% more energy density than current
country, where it has had a presence since Reuters lithium-ion batteries.
2014, remains severely restricted following
the military’s seizing of power in a Feb 1 coup. REUTERS However, solid-state battery technol-
ogy is more expensive than lithium-ion
The new regime imposed network restric- billion Norwegian crowns in 1Q from a year- cell technology. It also must prove it
tions for all operators, and on March 15 or- ago profit of 698 million crowns. can operate and remain durable in the
dered a nationwide shutdown of mobile data real world, and must increase its scale
that has since cutTelenor’s subscription and Telenor reiterated full-year guidance for to meet industry demand.
traffic revenues in the country in half, the overall organic revenue and earnings to re-
company said. main unchanged year-on-year from 2020, Monday’s announcement marks the
excluding the Myanmar impact. It repeated second investment in Solid Power for
However, it still added some two million that capital expenditure would amount to Ford andVolta Energy. Both participat-
users in Myanmar during the quarter as call between 15% and 16% of sales. ed in the $26 million Series A round in
volumes rose, increasing its local customer 2018 that included Hyundai Motor Co
base to 18.2 million. and Samsung Electronics.

While Telenor saw an “irregular, uncer- Following the latest investments,
tain, and deeply concerning situation” with Ford and BMW will own equal, uni-
“limited prospects of improvement going for- dentified stakes in Solid Power, which
ward”,Telenor would stay in Myanmar for was established in 2012 as a spinout
now, chief executive officer Sigve Brekke said. from the University of Colorado Boul-
der, Campbell said.
Telenor fully impairedTelenor Myanmar
in its 1Q accounts, booking a loss of 6.5 bil-
lion crowns (US$783 million) and remov-
ing the operation from its overall corporate
outlook for 2021.

As a result of the write-down, theTelenor
group’s net earnings slumped to a loss of 3.9

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Foreigners Singapore is emerging digitalisation,” said Menon, adding that
needed to fill as a regional tech the pipeline of local tech graduates wasn’t
Singapore tech enough to fill the vacancies.
jobs crunch, says hub but headhunters
central banker say it faces a severe The city-state, an Asian base for many
multi-nationals and banks, is home to glob-
BY ANSHUMAN DAGA talent crunch as al companies such as Facebook and Alpha-
Reuters more firms move in. bet’s Google, while ByteDance and Zoom
are hiring aggressively in the country of
SINGAPORE (May 4): A boom in tech- said during a webinar on job opportunities 5.7 million people.
nology jobs across all sectors in Singapore in the financial services and tech jobs in
and a shortage of tech workers means the the industry. The large mismatch between demand
country will have to rely on foreigners to and supply of tech workers meant that “we
fill the gap, Ravi Menon, the managing “The competition for tech talent is have to continue to depend on foreigners
director of the Monetary Authority of Sin- economy-wide as more sectors embark on to fill the growing vacancies for technology
gapore said on Tuesday. jobs over the next few years,” Menon said.

Singapore is emerging as a regional tech “If we tighten this inflow excessively, it
hub but headhunters say it faces a severe will impair not just the competitiveness of
talent crunch as more firms move in.This our financial centre but dampen the pros-
is partly because of government policies pects for creating good jobs in the future,
to tighten foreign hiring to offset falling especially for Singaporeans,” he said.
Singaporean employment amid the coro-
navirus pandemic. Singapore also needs to build a strong
pipeline of local tech talent by involving
Singaporeans make up just over one- financial institutions, individuals and the
third of the estimated 25,000 tech work- government, the central banker said.
force in the local financial sector, Menon
The Singapore government has im-
posed tighter immigration curbs but also
said it must remain open to overseas talent.

Effective this year, Singapore rolled out
a new work visa for foreign executives of
tech firms.

The country’s total employment in
2020 shrank the most in more than two
decades.

(May 4): Blackstone Group Inc expects de- Blackstone bets on park, the largest in the Greater Bay Area,
mand for residential apartments to be resil- Asia apartments for US$1.1 billion earlier this year. Last
ient in some parts of Asia as millennials are month, Blackstone announced the pur-
renting their homes rather than buying them. as millennials chase of the Sandcrawler, an eight-story
stuck renting office building in Singapore whose design
Housing markets in major cities in Aus- was inspired by the Star Wars movies.
tralia, China and Japan are booming, spurred BY ELFFIE CHEW
by low interest rates and improving senti- Bloomberg Even though Blackstone inked a deal
ment among investors who believe the worst in April to divest a portfolio of warehous-
of the pandemic is likely over. Retention and ki. The private equity firm is already the es and logistics properties in Australia for
renewal rates for apartments have been top- largest commercial real estate owner in the A$3.8 billion (US$2.9 billion), Miyasaki
ping expectations, according to Alan Miyas- country, with about US$9 billion invested said they will continue to invest in similar
aki, head of Asia real estate acquisitions. in office space, shopping malls and hotels. assets as well as high-quality properties
that provide strong returns.
“We are big fans of multifamily residen- In China, the NewYork-based buyout
tial,” he said in an interview in Singapore firm completed the acquisition of a major- Blackstone has eight offices in Asia, and
last week, referring to apartment buildings. ity stake in a Guangzhou urban logistics the Singapore-based executive pointed to
“In Asia, in terms of existing stock, we have the firm’s presence across the region as an
a lot in Japan but we are seeing upcoming advantage in terms of scouting opportu-
markets in places like Australia and China nities during the coronavirus pandemic.
and we are spending time there.” With Australia’s borders closed, for ex-
ample, Miyasaki relied on his team there
High property prices in major Asian cit- for the local perspective.
ies have also made home ownership more
difficult for younger generations, boosting “Covid exposed a number of issues
demand for rental apartments. For instance, out there,” Miyasaki said. “We have al-
a several-fold surge in home prices in China ways thought having people on the ground
over the last decade has made markets such was important but during Covid, it became
as Shenzhen less affordable than London. absolutely critical.”
Read also: EU plans quicker invest-
Beyond apartments, Blackstone con- ments in big projects from hydrogen to
tinues to focus on commercial property 5G Click here
opportunities linked to the technology,
logistics and life sciences sectors in Asia,
especially in India, according to Miyasa-

W E D N E S D A Y M A Y 5 , 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

Australia probe of China port signals
trouble for Beijing

CANBERRA/SYDNEY (May 4): Five years BY JASON SCOTT & MICHAEL HEATH While the Port of Darwin’s commercial ar-
ago,Australia’s defence chief dismissed worries Bloomberg rangements are not in the public domain, the
over a Chinese company leasing a port used matter could be settled quickly depending on
by US Marines as “simply absurd”. Now the BLOOMBERG the position of the federal government, he said.
government in Canberra is weighing whether Investment plunges
to force a sale due to national security concerns. Peter Dutton Economic ties between the nations have tak-
en a hit in recent years. China’s trade reprisals
Defence Minister Peter Dutton confirmed Dennis Richardson, then at Australia have hit a range of commodities
over the weekend that his department would secretary of the Defence from coal to beef to barley and lobster, while
advise the government on what to do with the Department, rejected concerns Chinese investment Down Under plunged
port. Asked whether the government would the People’s Liberation Army to about A$1 billion last year from a peak of
consider forced divestiture, he told the Sydney could gain access to the port A$16.5 billion in 2016, according to Austral-
Morning Herald that officials would consider as “alarmist nonsense”. ian National University research.
the national interest.
In a sign of how rapidly times have changed, Even so, the proportion of Australian ex-
The decision risks further hurting Chi- Australia’s Home Affairs Secretary Michael ports to China climbed to 43% by the end of
na-Australia ties, which have plummeted since Pezzullo last week told his staff that “in a world 2020 even as the relationship unravelled thanks
Prime Minister Scott Morrison called for an of perpetual tension and dread, the drums of to the relentless rise in iron ore prices as Chi-
independent investigation into the coronavirus war beat”.While he did not directly mention na’s early emergence from Covid-19 spurred
origin and strengthened defence ties with the China,he said free nations were watching“wor- demand for the steelmaking ingredient. Major
US, India, and Japan. It will also have ramifi- ryingly the militarisation of issues that we had, producers have struggled to keep pace with
cations far beyond Australia as the US pushes until recent years, thought unlikely to be cat- demand from Chinese steel mills, pushing the
countries to avoid cutting deals with Chinese alysts for war”. price to US$193 a ton in April, just shy of its
companies on strategic infrastructure invest- 2010 record.
ments, from ports to undersea cables to 5G China has sought to blame Australia for the
networks. downturn in ties while accusing Morrison’s Although China was the top buyer of Aus-
government of “economic coercion”. Asked tralian wine before the tariffs, accounting for
While Australia has cited national security last week about speculation Australia would 40% of shipments, strong European sales
to block Chinese companies like HuaweiTech- move to scrap the Darwin lease, Chinese For- have helped counter the slump.The key dan-
nologies Co, scrapping an existing deal would eign Ministry spokesmanWangWenbin said his ger ahead relates to international education
be unprecedented in the modern era,according government would “firmly safeguard the legiti- and tourism, which are currently in stasis due
to Hans Hendrischke, a professor of Chinese mate rights and interests of Chinese businesses to closure of international borders: China ac-
business and management at the University of investing and operating overseas”. counts for more than a third of foreign students
Sydney. He noted that China is turning more in Australia and Chinese tourists account for
towards venture capital in developed markets “We hope the Australian side will look at 15% of visitors.
as direct investment becomes untenable. bilateral cooperation in an objective and ration-
al light and stop disrupting normal exchange Despite the hit to some sectors of the econ-
“It’s an escalation that’s part of the decou- and cooperation with China,”Wang told re- omy,Australia’s tough stance on China is likely
pling process that’s happening globally connect- porters in Beijing. to play well with voters, according to Natasha
ed with Chinese companies — and long-term, Kassam, a former Australian diplomat who
major infrastructure investments,”Hendrischke Should Morrison’s government decide to is the director of the Lowy Institute’s public
said of Australia’s decision. “There has been revoke the port deal, it will “most definitely” opinion and foreign policy programme.
pressure on Australia to revoke that deal be- happen as it has a constitutional right to over-
cause it’s seen to clash with US interests.” ride laws made in the Northern Territory, as “It would be very significant and send a
well as additional powers in relation to defence strong message in terms of future Chinese in-
‘Economic coercion’ matters, said Donald Rothwell, a professor of vestment,” she said when asked about the ram-
Back in 2015, when the Northern Territory international law at the Australian National ifications of a forced sale of the Darwin port
government sold a 99-year lease for the Port University. lease. “Australia was probably thinking a year
of Darwin to Chinese firm Landbridge Group ago it could reach a new settling point with
for A$506 million (US$391 million),Austral- “The major issues if the Commonwealth China, but that’s proven elusive.”
ian officials played down any criticism. Den- seeks to revoke the arrangement would be
nis Richardson, who was then secretary of the the commercial legal consequences,” includ- Read also:
Defence Department, rejected concerns the ing penalties or compensation, Rothwell said.
People’s Liberation Army could gain access China calls for ‘basic etiquette’ after
to the port as “alarmist nonsense”. Philippine outburst
“China urged the Philippines onTuesday to
“The notion that Landbridge is leasing Dar- observe“basic etiquette”and eschew megaphone
win somehow or other as part of a broader diplomacy after the southeast Asian nation’s
strategic play by China and this gives the PLA foreign minister used an expletive-lacedTwitter
navy access to Darwin is simply absurd,” Rich- message to demand that China’s vessels leave
ardson told lawmakers in Canberra at the time. disputed waters.”
He said there was no chance of China spying Click here
on US-Australian communications because
naval vessels go silent in any commercial port.

W E D N E S D A Y M A Y 5 , 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

WORLD

Bill and Melinda Gates to divorce
with US$146b at stake

(May 4): Bill and Melinda Gates, who for BY DINA BASS, SOPHIE ALEXANDER both partners, but that doesn’t necessarily
decades have overseen one of history’s great- & DEVON PENDLETON mean the fortune would be split in half.
est fortunes and philanthropic operations, Bloomberg
said they plan to divorce. “It is not a mandatory 50-50,” said Janet
of dollars to often overlooked causes among George, a family lawyer inWashington with
The announcement Monday that the billionaire donors. the firm McKinley Irvin. “The courts can
couple is splitting after 27 years of marriage award more or less, depending on what is
has the power to ripple through the tech- But for Bill and Melinda Gates, separat- just and equitable.”The public might never
nology industry, a vast portfolio of business ing assets potentially poses a bigger challenge find out how they split the fortune, because
and real estate holdings and into the realms than dividing the Bezos fortune, which was it can be hidden behind private contracts,
of global health, climate change policy and largely concentrated in Amazon stock. she said.
social issues including equality for women.
Bill Gates’s net worth originated with Washington mandates a 90-day cooling
The pair, who command an estimated Microsoft but shares of the software-maker off period from the day a couple initially
$146 billion, according to the Bloomberg now probably make up less than 20% of his files for divorce before the process can be
Billionaires Index, made no public hint of assets. He’s shifted much of his stake into finalized by a judge. The couple’s divorce
their financial plans, though they empha- the Bill & Melinda Gates Foundation over filing — listing Melinda as the petitioner and
sized that they will cooperate on continuing the years and his exact stake hasn’t been Bill as joining, with both of them signing —
their philanthropy. disclosed since he left Microsoft’s board asks the court to dissolve their marriage on
last year. a date noted in their separation agreement.
“After a great deal of thought and a lot
of work on our relationship, we have made Gates’s biggest asset is Cascade Invest- “It’s been a challenging stretch of time
the decision to end our marriage,” the two ment, a holding company he created with for our whole family,” their eldest daughter,
said in a brief statement posted onTwitter. the proceeds of Microsoft stock sales and Jennifer, wrote on Instagram.
“We have raised three incredible children dividends that’s run by Michael Larson.
and built a foundation that works all over the Through Cascade, Gates has interests in Their youngest child is 18.
world to enable all people to lead healthy, real estate, energy and hospitality as well
productive lives.” as stakes in dozens of public companies, Becoming philanthropists
including Canadian National Railway and The pair met in NewYork in the 1980s, early
Bill Gates, the 65-year-old co-founder Deere & Co. into Melinda’s time at Microsoft.
of Microsoft Corp., ranks as the world’s
fourth-richest person. Melinda Gates, 56, Monica Mazzei, a divorce attorney and a When deciding whether to marry, Bill
is a former Microsoft manager who’s gained partner at Sideman & Bancroft LLP in San made a pro-and-con list on a whiteboard
international prominence co-running the Francisco, said the big question concerning — Melinda related how she walked into his
Bill & Melinda Gates Foundation. It’s al- the couple’s foundation and family office is bedroom to find him tabulating various fac-
ready given away more than $50 billion. to what extent they plan on working together tors in the Netflix documentary series “In-
going forward. side Bill’s Brain.”
They will remain co-chairs and trustees
of the foundation, a spokesperson for the “Even in the most amicable divorces I’ve The couple’s philanthropy has always
organization wrote in an emailed statement. seen, the preference has been to split the been deeply rooted in their relationship
foundation in two so that there’s more au- and marriage. The day before they wed
“No changes to their roles or the organi- tonomy and less intermingling,” she said. in Hawaii, Bill’s mother, Mary, who had
zation are planned,” according to the state- The same principle applies to family offices, been trying to convince him to dramatically
ment.“They will continue to work together where the investments could be divvied up increase his charity, gave Melinda a letter
to shape and approve foundation strategies, into two separate pots. which closed with the words “From those
advocate for the foundation’s issues, and set ‘Challenging stretch’ to whom much is given, much is expected.”
the organization’s overall direction.” Washington law may offer some clues to Mary Gates died several months later.
how they divide their assets. As a commu-
The couple filed for divorce in King nity property state, anything acquired during But it was on a trip to Africa during their
County on Monday, an online search of a marriage is considered equally owned by engagement that the couple decided they
court dockets shows.They have a separation would become serious philanthropists.
agreement, according to a copy of a divorce
petition posted by the websiteTMZ, which “We fell in love with everything we saw
doesn’t elaborate on the terms. It calls their but it’s really not at all trite to say that we
marriage “irretrievably broken.” really fell in love with the people,” Melin-
da said at a Salesforce event in 2016. “It
It’s the second bombshell divorce among just started us on this series of questions of
the uppermost ranks of the world’s richest sort of saying to ourselves, ‘What is going
people in recent years, following the 2019 on here?’”
separation announcement of Jeff Bezos and
MacKenzie Scott. Later on in the trip, the couple filled out
a marriage questionnaire to make sure they
That split, which divided the couple’s had the same values.That’s when they de-
stake in Amazon.com Inc., immediately cided “the vast majority of resources from
made MacKenzie one of the world’s rich- Microsoft would go back to society,” Melin-
est people. In the months that followed, she da said. “It was an easy discussion.We just
became one of the most influential philan- thought it would be later in our lives when
thropists in the world, giving away billions we got to do it.”

W E D N E S D A Y M A Y 5 , 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

Chanel N°5 is 100 today amount of aldehydes. It was said that the
couturier later told Beaux that the concoc-
The world’s most iconic perfume made its debut on this day in 1921 tion “was what I was waiting for … a wom-
an’s perfume, with the scent of a woman”.
The “accident” would go on to create a
groundbreaking new category of fragrance
that would pave the way to a modern era in
perfumery.The number five being her lucky
number, the fragrance was simply named
Chanel N°5 and it debuted along with her
new clothing collection on May 5, 1921.
It was the first fragrance to be created by
a fashion designer and Chanel, a woman
ahead of her time, broke tradition by nam-
ing the scent after her own name, ushering
perfumery into unchartered waters.

The glamour of N°5
N°5, with its groundbreaking abstract
scent profile, is said to be a mirror image
of Gabrielle Chanel’s irreverent personal-
ity, in fragrance form. It is a combination
of Chanel’s disregard for rules, a pioneer-
ing spirit and the unflappable confidence
in the persona she had created for herself
that has made N°5 the enduring, inimitable
icon it is today.

PHOTOS BY CHANEL

With five being a number ‘Scent of a woman’ Gabrielle Chanel shot by François Kollar in
that held symbolic impor- It was while vacationing with Russian no- a campaign for Chanel N°5 that appeared in
tance, Gabrielle “Coco” bleman Grand Duke Dmitri Pavlovich
Chanel chose May 5, 1921, in the South of France that she met the Harper’s Bazaar, US, 1937
to launch her new perfume, Chanel N°5, French-Russian perfumer Ernest Beaux.At
at her rue Cambon boutique in Paris. It a time when perfumes were based purely on Decades before product ambassadors be-
was a fragrance that would go on to revo- the scent of a single flower, Chanel went on came a ubiquitous marketing tool, Chanel
lutionise the perfume industry and create to challenge Beaux to create “an artificial was the first woman to become the face of
new firsts for the celebrated avant-garde fragrance like a dress, something crafted. I her own fragrance in 1937, posing for pho-
designer. don’t want rose or lily of the valley, I want tographer François Kollar, for a N°5 adver-
a composed fragrance”. tisement that appeared in Harper’s Bazaar
Born into poverty in the French coun- in the US. Marilyn Monroe famously re-
tryside to a clothing peddler and a laun- Working in his laboratory in Grasse vealed in 1952 that she wore nothing but
drywoman, Chanel was sent to live in a on the French Riviera, the renowned per- “a few drops of N°5 to bed”, augmenting
convent at the age of 11 with her two sis- fumer concocted a bouquet of 80 scents the scent’s celebrity status.
ters after the death of their mother. It was (combining notes of May rose, jasmine,
at the convent that she learnt to sew. ylang-ylang and sandalwood, among oth- CONTINUES ON NEXT PAGE

Stepping into her twenties, Chanel ers). Legend says that Beaux’s assis-
became associated with several wealthy tant accidentally added high levels
men and quickly established herself on of aldehydes — chemicals used to
the fashion scene. It was
one of her lovers who make a scent last longer
helped set up her first bou- but which were used
tique. In time, Chanel be- sparingly by perfumers
came a sought-after cou- of the time — to one of
turier, drawing accolades the samples presented to
for her trend-setting un- Chanel.
conventional designs and
fame for her high-profile Another famous sto-
dalliances and larger-than- ry has it that Chanel
life persona. was shown 10 samples,
labelled 1 to 5 and 20 to
N°5 Parfum, 1921 24. She was drawn to the
fifth sample — the one
that contained a large

W E D N E S D A Y M A Y 5 , 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

LEISURE

Lauren Hutton, photographed by Carole Bouquet, photographed by Marion Cotillard photographed by
Richard Avedon, 1968 Michel Comte, 1987 Steven Meisel, 2020

FROM PREVIOUS PAGE Polge and now Olivier Polge — tasked with lighter version of the original, three years
guarding N°5’s secret formula. “Preserv- after Parfum. It presented a revolutionary
The appointment of Jacques Helleu as ing N°5 requires my constant attention,” spray that introduced a new way of wear-
artistic director for Chanel Fragrances in attests Olivier, in-house perfumer-creator ing fragrance.
the 1960s initiated the era of brand am- since 2015. It is his responsibility to oversee N°5 Eau de Parfum (1986)
bassadors as we it know today, casting the sourcing of the raw materials that go Responding to changing trends, Jacques
some of the world’s most beautiful faces into the iconic fragrance and ensure that created Eau de Parfum to revive the sen-
during the golden era of big-budget ad- their quality is maintained. suality of Beaux’s original fragrance, with
vertising campaigns.Throughout the dec- an updated rich floral-aldehydic bouquet.
ades, A-listers the likes of Ali MacGraw, Apart from preserving the original Par-
Lauren Hutton, Catherine Deneuve, Car- fum, the house’s perfumers — with the N°5 Eau
ole Bouquet and Nicole Kidman have ap- exception of Henri Robert — have each Première,
peared in N°5 advertising visuals, shot worked alongside Chanel’s Laboratory of
by famous lensmen such as Richard Ave- Fragrance Creation and Development to 2008
don, Patrick Demarchelier and Dominique create various interpretations of N°5.There
Issermann, and filmed under the guidance are currently five iterations of the fragrance
of renowned directors like Helmut New- that showcase its different facets and per-
ton, Ridley Scott and Baz Luhrmann. In sonalities:
2020, acclaimed actress Marion Cotillard N°5 Parfum (1921)
became the latest face of N°5, with her As Chanel’s début fragrance, N°5 Parfum
allure affirming that the perfume, in spite defined the house’s olfactive style and set
of its century-long legacy, remains con- the standard for its tradition of excellence
temporary and in step with the psyche of and expertise in perfumery.
the modern woman.

Five interpretations of N°5 N°5 Eau de Toilette (1924)
Since the time Beaux created the House Beaux created the first variation of N°5, a
of Chanel’s iconic scent, there have been
three perfumers — Henri Robert, Jacques N°5 Eau Première (2008)
Jacques released an airy and luminous in-
terpretation of N°5, incorporating white
musks and aldehydes developed by Chanel
from citrus essences.

N°5 Parfum, 1924 N°5 L’Eau (2016)
Olivier created N°5 L’Eau, a fresh floral
eau de toilette that opens with a citrus ac-
cord — lemon, mandarin and orange —
and then combines with rose, jasmine and
ylang-ylang in the middle and cedarwood
at the base.

W E D N E S D A Y M A Y 5 , 2 0 2 1 25 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 4,042.00-19.00 OIL US$ 68.791.23 RM/USD 4.1213 RM/SGD 3.0868 RM/AUD 3.1813 RM/GBP 5.7183 RM/EUR 4.9487

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
1,588.25
FOCUS DYNAMICS GROUP BHD 708.0 -0.010 0.105 -83.85 668.9

VELESTO ENERGY BHD 335.1 0.000 0.160 14.29 1314.5

VORTEX CONSOLIDATED BHD 203.6 -0.010 0.130 -33.14 86.5

TDM BHD 194.2 0.025 0.330 -7.04 568.6

BERJAYA CORP BHD 193.9 0.045 0.365 92.11 1837.0

LKL INTERNATIONAL BHD 148.3 -0.010 0.375 -59.02 193.0

LION INDUSTRIES CORP BHD 134.1 0.090 0.930 34.78 633.2

TANCO HOLDINGS BHD 109.1 0.005 0.090 80.00 127.7

RIMBUNAN SAWIT BHD 97.5 0.015 0.290 3.57 592.1 World equity indices

HIAP TECK VENTURE BHD 93.5 -0.005 0.660 43.48 922.5

PA RESOURCES BHD 90.8 0.035 0.575 64.29 686.7 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

SASBADI HOLDINGS BHD 89.8 0.005 0.230 53.33 96.4 (%) (%)
DOW JONES 34,113.23 238.38 0.70 INDONESIA 5,963.82 11.22 0.19
MINDA GLOBAL BHD 87.2 -0.005 0.160 166.67 211.5

UCREST BHD 86.4 -0.025 0.385 148.39 235.9 S&P 500 4,192.66 11.49 0.27 JAPAN 28,812.63 -241.34 -0.83

NOVA MSC BHD 82.0 -0.010 0.130 44.44 148.1 NASDAQ 100 13,799.72 -61.04 -0.44 KOREA 3,147.37 20.17 0.64

MELEWAR INDUSTRIAL GROUP BHD 80.1 0.020 0.740 35.78 266.0 FTSE 100 7,017.30 47.49 0.68 PHILIPPINES 6,359.15 -10.13 -0.16

CAREPLUS GROUP BHD 75.7 -0.120 2.780 35.96 1529.2 AUSTRALIA 7,067.85 39.06 0.56 SINGAPORE 3,179.13 -5.63 -0.18

DAGANG NEXCHANGE BHD 73.0 -0.020 0.680 202.22 1609.9 CHINA 3,446.86 -28.05 -0.81 TAIWAN 16,933.78 -288.57 -1.68

AT SYSTEMATIZATION BHD 71.9 -0.005 0.100 -45.95 422.9 HONG KONG 28,557.14 199.60 0.70 THAILAND 1,583.13 -7.33 -0.46

KEY ASIC BHD 68.1 -0.015 0.170 112.50 201.4 INDIA 48,253.51 -465.01 -0.95 VIETNAM 1,242.20 2.81 0.23

Data as compiled on May 4, 2021 Source: Bloomberg Data as compiled on May 4, 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)

MTOUCHE TECHNOLOGY BHD 0.245 96.00 29430.1 -28.13 147.6 LAMBO GROUP BHD 0.020 -20.00 19118.4 -33.33 99.8

GOLDEN PHAROS BHD 0.580 45.00 62145.6 136.73 80.0 PASUKHAS GROUP BHD 0.020 -20.00 1416.9 -71.43 33.1

GOPENG BHD 1.130 35.33 3943.2 69.92 304.0 TALAM TRANSFORM BHD 0.025 -16.67 1293.2 -16.67 107.4

PRICEWORTH INTERNATIONAL BHD 0.020 33.33 7532.7 -33.33 90.1 FSBM HOLDINGS BHD 0.110 -15.38 17.0 10.00 15.5

TRANSOCEAN HOLDINGS BHD 6.200 19.69 3880.4 684.81 279.6 MACPIE BHD 0.090 -10.00 33661.1 -62.11 85.2

SIN HENG CHAN MALAYA BHD 0.735 15.75 824.2 58.06 96.9 TIEN WAH PRESS HOLDINGS BHD 0.930 -9.71 49.8 1.64 134.6

WATTA HOLDINGS BHD 0.850 14.09 559.4 53.15 71.8 DATAPREP HOLDINGS BHD 1.500 -9.64 24166.6 733.33 931.4

BERJAYA CORP BHD 0.365 14.06 193941.2 92.11 1837.0 COMPLETE LOGISTIC SERVICES BHD 1.400 -9.09 2225.7 100.00 180.1

GOLDEN LAND BHD 0.440 12.82 179.8 2.33 94.4 FOCUS DYNAMICS GROUP BHD 0.105 -8.70 707991.6 -83.85 668.9

ACME HOLDINGS BHD 0.330 11.86 15216.6 -29.03 98.7 METRONIC GLOBAL BHD 0.055 -8.33 5527.8 -45.00 91.7

MNC WIRELESS BHD 0.050 11.11 3965.1 11.11 87.9 IDEAL UNITED BINTANG 0.955 -8.17 13.3 -11.57 444.8

SCOMI ENERGY SERVICES BHD 0.100 11.11 477.7 5.26 46.8 MERIDIAN BHD 0.170 -8.11 4808.4 -60.00 105.3

UNITED U-LI CORP BHD 1.420 10.94 7782.5 15.45 309.3 KEY ASIC BHD 0.170 -8.11 68065.8 112.50 201.4

EONMETALL GROUP BHD 0.775 10.71 8079.2 8.39 157.9 STELLA HOLDINGS BHD 1.080 -7.69 702.7 33.33 72.4

LION INDUSTRIES CORP BHD 0.930 10.71 134123.3 34.78 633.2 EKA NOODLES BHD 0.060 -7.69 811.4 -14.29 18.7

K-ONE TECHNOLOGY BHD 0.320 10.34 34300.5 -11.11 261.1 MALPAC HOLDINGS BHD 1.230 -7.52 155.1 70.83 92.3

CME GROUP BHD 0.055 10.00 423.1 -8.33 48.4 QES GROUP BHD 0.625 -7.41 36703.6 111.86 521.3

MALAYSIA STEEL WORKS KL BHD 0.825 10.00 66198.6 22.22 372.5 SEALINK INTERNATIONAL BHD 0.440 -7.37 23306.8 131.58 220.0

SHIN YANG SHIPPING CORP BHD 0.455 9.64 51177.9 42.19 531.4 IMPIANA HOTELS BHD 0.065 -7.14 1434.9 -18.75 69.6

SC ESTATE BUILDER BHD 0.115 9.52 47820.6 91.67 119.4 NOVA MSC BHD 0.13 -7.14 81996.8 44.44 148.1

Data as compiled on May 4, 2021 Source: Bloomberg Data as compiled on May 4, 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 6.200 1.020 3880.4 684.81 279.6 VITROX CORP BHD 15.740 -0.260 57.6 7.07 7432.0

HENGYUAN REFINING CO BHD 5.600 0.340 2140.5 -6.51 1680.0 PENTAMASTER CORP BHD 5.400 -0.260 2636.7 6.93 3846.5

GOPENG BHD 1.130 0.295 3943.2 69.92 304.0 HEINEKEN MALAYSIA BHD 25.520 -0.200 47.7 10.86 7709.5

PANASONIC MANUFACTURING 31.500 0.240 1.7 2.27 1913.5 NESTLE MALAYSIA BHD 135.800 -0.200 19.0 -2.23 31845.1

SARAWAK OIL PALMS BHD 4.050 0.220 484.3 1.25 2314.6 DATAPREP HOLDINGS BHD 1.500 -0.160 24166.6 733.33 931.4

RAPID SYNERGY BHD 8.390 0.210 17.6 27.12 896.9 CENTRAL GLOBAL BHD 2.320 -0.150 11562.6 553.52 208.8

LOTTE CHEMICAL TITAN HOLDING 3.390 0.180 17177.9 22.38 7705.4 COMPLETE LOGISTIC SERVICES BHD 1.400 -0.140 2225.7 100.00 180.1

GOLDEN PHAROS BHD 0.580 0.180 62145.6 136.73 80.0 LPI CAPITAL BHD 13.660 -0.120 85.4 -0.44 5441.9

ALLIANZ MALAYSIA BHD 13.380 0.180 47.9 -9.47 2370.5 CAREPLUS GROUP BHD 2.780 -0.120 75676.1 35.96 1529.2

UNITED MALACCA BHD 5.250 0.150 72.4 2.94 1101.3 GREATECH TECHNOLOGY BHD 5.730 -0.120 2382.9 25.93 7174.0

PETRON MALAYSIA REFINING 4.670 0.140 85.6 -11.05 1260.9 CARLSBERG BREWERY MALAYSIA 22.440 -0.120 78.2 -3.44 6861.0

UNITED U-LI CORP BHD 1.420 0.140 7782.5 15.45 309.3 SARAWAK CONSOLIDATED 1.550 -0.110 13690.0 9.15 760.4

HAP SENG CONSOLIDATED BHD 8.040 0.140 125.9 -6.51 20016.9 REVENUE GROUP BHD 2.090 -0.110 4381.6 65.87 931.5

TA ANN HOLDINGS BHD 3.000 0.130 992.4 -0.99 1321.4 PARAGON UNION BHD 1.720 -0.100 281.0 156.72 111.3

MTOUCHE TECHNOLOGY BHD 0.245 0.120 29430.1 -28.13 147.6 MALPAC HOLDINGS BHD 1.230 -0.100 155.1 70.83 92.3

BATU KAWAN BHD 18.720 0.120 18.1 4.58 7409.3 AEON CREDIT SERVICE M BHD 12.120 -0.100 62.7 1.00 3094.3

SARAWAK PLANTATION BHD 2.510 0.110 795.2 11.56 700.4 IPMUDA BHD 1.380 -0.100 11.5 72.50 140.0

WATTA HOLDINGS BHD 0.850 0.105 559.4 53.15 71.8 UWC BHD 5.850 -0.100 1091.7 19.39 6438.7

SIN HENG CHAN MALAYA BHD 0.735 0.100 824.2 58.06 96.9 TIEN WAH PRESS HOLDINGS BHD 0.930 -0.100 49.8 1.64 134.6

UNISEM M BHD 7.900 0.100 344.9 27.83 6318.4 MEGA FIRST CORP BHD 7.15 -0.09 226.3 3.62 3386.8

Data as compiled on May 4, 2021 Source: Bloomberg Data as compiled on May 4, 2021 Source: Bloomberg