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MORE THAN US$200B WIPED OFF CRYPTOCURRENCY
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CEOMorningBrief
HOME: LTAT eyes first international public equity exposure in higher dividend push p4
Greatech 1Q net profit tumbles 37.99% to RM28.93m despite revenue rise p5
High Court to deliver verdict on Rosmah’s solar hybrid graft trial on July 7 p14
WORLD: Russia oil revenues up 50% this year despite boycott, says IEA p18

Ringgit weakens again to 4.39 against US dollar,
despite OPR hike

Report on Page 2.

Serba Dinamik
and top execs pay
RM16m compound
offered by AGC

Report on Page 3.

FRIDAY MAY 13, 2022 2 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 12): Just Ringgit weakens Intraday movement of USD/MYR
a day after the ringgit regained some again to 4.39
strength following Bank Negara Malay- 4.375 4.3752
sia’s (BNM) decision to raise the over- against US dollar,
night policy rate (OPR) by 25 basis points despite OPR hike 4.380
to 2%, the local currency is back on its
weakening trend against the US dollar on BY IZZUL IKRAM 4.385
Thursday (May 12). theedgemarkets.com
4.390
The ringgit weakened to 4.3940 versus REUTERS
the greenback — the lowest level in two 4.395 4.3940
years since April 2020 — compared with sures’ sharp increase as well as taking into 8am
4.3770 on Wednesday (May 11). account that the sustained reopening of the May 12, 2022 5.56pm
global economy and improvement in labour May 12, 2022
The US’ higher-than-expected inflation markets are continuing to support the re- Source: Bloomberg
data for April is seen as reinforcing the ex- covery of economic activity from the impact
pectation that the US Federal Reserve will of Covid-19-driven movement restrictions.
remain on the path of raising interest rates BNM is scheduled to release economic
after the recent 50-basis-points hike.This
does not augur well for currencies in the growth figures on Friday (May 13). The
emerging economies, including the ringgit. market consensus expects the quarterly
growth to be in the range of 4% to 5%.
The 25-basis-point hike in OPR does
not seem to lend much support to the lo-
cal currency.

According to BNM’s statement, the move
was influenced by global inflationary pres-

NEWYORK (May 12): Prices paid to US US producer interest rates are slowing demand before
producers rose at a solid pace in April, sig- prices rise at they start thinking about the endpoint of the
nalling that elevated consumer inflation robust pace after current rate hike cycle,” Bill Adams, chief
could persist for longer than expected, hotter March data economist at Comerica Bank, said in a note.
keeping the Federal Reserve (Fed) geared
towards aggressive rate hikes. BY OLIVIA ROCKEMAN The S&P 500 opened lower whileTreas-
Bloomberg uries climbed.
The producer price index (PPI) for fi- Services flat
nal demand increased 11% from April of sia’s war in Ukraine and Covid-19-related Prices of goods climbed 1.3% in April, in-
last year and 0.5% from the prior month, lockdowns in China further strain supply cluding gains in categories like motor ve-
driven by goods, Labor Department data chains, adding to the probability they will hicles, diesel fuel, and eggs.While services
showed onThursday.That followed sizea- pass those expenses on to consumers. inflation was flat, prices for truck transpor-
ble upward revisions to the March figures. tation of freight rose.
Fed officials raised rates by the most
Excluding the volatile food and ener- since 2000 last week in their strongest Energy, which spiked last month follow-
gy components, the so-called core PPI in- move yet to tamp down price pressures, ing Russia’s invasion of Ukraine, moderated
creased 0.4% from a month earlier and was but such global headwinds are putting the in April, rising 1.7% compared with 6.4%
up 8.8% from a year ago.While that measure central bank’s 2% inflation goal increas- in March.
rose at a softer-than-expected monthly pace, ingly out of reach. Chair Jerome Powell
March was revised up to a 1.2% advance. and his colleagues have signalled that they Producer prices excluding food, energy,
are open to several half-point increases in and trade services — which strip out the most
The median forecasts in a Bloomberg their benchmark rate in the months ahead. volatile components of the index — rose 0.6%
survey of economists called for a 10.7% from March, and 6.9% from a year ago.
year-over-year increase for the overall PPI “The Fed will want to see clearer evi-
and a 0.5% monthly advance. dence that inflation is cooling and higher Costs of processed goods for interme-
diate demand, which reflect prices earlier
The data, while moderating somewhat in the production pipeline, increased 2.2%
from March, suggest persistent inflation in from a month earlier.
the production pipeline will continue to fil-
ter through to consumer prices, which also Click here for the full story
slowed from the prior month. Producers are
likely to continue facing higher costs as Rus-

FRIDAY MAY 13, 2022 3 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 12): Serba Di- Serba Dinamik Beside Mohd Abdul Karim, the other
namik Holdings Bhd and its four top ex- and top execs executives were executive director Datuk
ecutives involved in the submission of false pay RM16m Syed Nazim Syed Faisal, who was chief fi-
information have paid a total of RM16 mil- nancial officer (CFO) from June 2016 until
lion compound issued by the Securities compound mid-2020; its current group CFO Azhan
Commission Malaysia (SC). offered by AGC Azmi; and vice president of accounts and
finance Muhammad Hafiz Othman.
Payment for the compound was made BY ADAM AZIZ
on May 9, said the oil and gas company theedgemarkets.com Muhammad Hafiz was also slapped
in a statement, whose creditors have filed with an additional RM1 million compound
a winding-up petition against it. The company’s audit saga started a year for falsifying the accounting records of Ser-
ago when its former auditor KPMG red- ba Dinamik’s subsidiary.
The company and three of its subsidiar- flagged issues on its financial accounts.
ies are currently facing winding-up petition The parties were given an extension
from its creditors who provided RM1.2 bil- The executives were initially brought to from the initial payment deadline of April
lion in syndicated term financing after failing trial by the SC for the offences after the regu- 28, according to news reports.
to service the debt in December last year. lator conducted an investigation into the audit
issues raised by KPMG. However, they were Serba Dinamik is currently in PN17 sta-
“Payment was made prior to the ex- offered the compound after the Attorney Gen- tus as its newly appointed external auditor
tended deadline of May 11, 2022. eral’s Chambers (AGC) accepted a letter of Nexia SSY PLT expressed a disclaimer of
representation by the accused on the matter. opinion on its audited financial statements
“The company would also like to em- for the 18-month financial period ended
phasise that operations are continuing as The SC,which issued the compound,said June 30, 2021.
usual, with a focus on managing its cred- RM3 million was the maximum amount per-
itors and the Practice Note 17 (PN17) missible under the Capital Markets and Ser- The company had changed its financial
restructuring process,” said the statement. vices Act 2007 for submission of false infor- year end to June 30 from Dec 31 when it
mation in the company’s financial statement. was embroiled in said audit saga with the
Serba Dinamik and its four top execu- former auditor.
tives, including controlling shareholder Da-
tuk Dr Mohd Abdul Karim Abdullah who Serba Dinamik’s share price recouped
is also the managing director, were com- some lost ground by rising 2.5 sen to trade
pounded RM3 million each for submitting at 8.5 sen at the time of writing.The stock no-
a false statement involving a revenue of sedived to a low of six sen from 35 sen in three
RM6.01 billion for its 12-month finan- trading days when trading resumed on Mon-
cial period ended Dec 31, 2020 (FY20). day (May 9) after a six-month suspension.

KUALA LUMPUR (May 12): 1Malay- 1MDB’s first he recommended you to provide some ser-
sia Development Bhd’s (1MDB) former company vices to some companies?
company secretary Lim Poh Seng told the
court that his appointment was done by secretary says Lim: Yes. Correct.
the board of Terengganu Investment Bhd he was appointed Wan Aizuddin: And you can’t remem-
(TIA) — the former iteration of 1MDB, ber what year?
not by any individual including fugitive byTIA board, Lim: No, I can’t.
financier Low Taek Jho or Jho Low. not Jho Low Wan Aizuddin: Was this arrangement
with Jho Low before or after you started
Testifying at Datuk Seri Najib Abdul BY TIMOTHY ACHARIAM & TARANI PALANI with TIA?
Razak’s 1MDB-Tanore trial, Lim was theedgemarkets.com Lim: Before.
asked by the former prime minister’s law- Wan Aizuddin: So even before you
yerWan AizuddinWan Mohammed wheth- was asked by Jho Low in 2008 to attend were involved with TIA you already knew
er any individual such as Jho Low had ap- TIA meetings before it became incorpo- Jho Low.
pointed him to be the company secretary. rated and had a board. Lim: To my vague recollection, yes.
Lim served as company secretary from
According to Lim, TIA board appoint- It is worth noting that TIA at that time the inception ofTIA between Feb 27, 2009
ed him as company secretary in 2009.TIA, did not have a board of directors and only and March 31, 2011. Goh Gaik Kim took
which was a state-run investment, was later had a steering committee. over the position after Lim resigned.
taken over by the Ministry of Finance under
Najib,who was also the finance minister then. “I was asked by Jho Low to attend the Lim: No, my
steering committee meetings and take min- appointment was
Wan Aizuddin: Who appointed you utes,” said Lim. approved by the
(as company secretary)? board of directors
He testified that he was acquainted with and not any one
Lim: I can’t recall but there would be a Jho Low even before TIA because he was
resolution as to who appointed me. engaged in some external consultancy work individual.
with the fugitive financier.
Wan Aizuddin: It was not Jho Low SAM FONG/THE EDGE
who offered you? Wan Aizuddin: .. but what you can
recall is that Mr Low approached you and
Lim: No, my appointment was ap-
proved by the board of directors and not
any one individual.

Upon questioning fromWan Aizuddin,
Lim said that while the board had formally
appointed him as company secretary, he

FRIDAY MAY 13, 2022 4 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 12): Malay- LTAT eyes first the right mix of assets within its portfolio
sia’s Armed Forces Fund Board, which international that covers all the asset classes.
is eyeing its first international public equity public equity
exposure, hopes to more than double its “This will translate into providing
fixed income or bond investments to 20% exposure that stable and sustainable return. We
of total assets as the fund aims to raise its in higher will start at 5% (by the end of 2022)
annual dividend payout to 5% for mem- dividend push and that will be the figure that we hope
bers, according to chief executive Datuk to achieve over the long term,” Nazim
Nazim Rahman. BY SYAFIQAH SALIM & HAILEY CHUNG said.
theedgemarkets.com
The Armed Forces Fund Board, also As at March 31, 2022, LTAT’s strategic
known as Lembaga Tabung Angkatan Conversations event which was held vir- asset allocation comprises a 44.1% portion
Tentera (LTAT), was established in 1972 tually on Thursday (May 12). for public equities, followed by real estate
as a statutory body that provides retire- at 27.3%, according to him.
ment savings and benefits for officers and MIDF group managing director Da-
members of the Malaysian Armed Forc- tuk Charon Mokhzani was the moderator He said LTAT’s strategic asset alloca-
es. As of Dec 31, 2021, LTAT had assets for the event. tion included portions for private equity
under management of close to RM9.7 at 13.3% and fixed income at 8.4% while
billion. Nazim said LTAT hopes to achieve and the money market and cash segment and
sustain its proposed annual 5% dividend strategic investments made up 4% and
“We are starting to get exposure to the payout from 2022 onwards by diversifying 2.8% respectively.
international equity market by the third or its investments.
fourth quarter this year (2022).We will do On LTAT’s environmental, social and
that through external fund managers as Looking back, he said LTAT declared governance (ESG) framework, Nazim
well apart from having some of the funds a 4.1% dividend for members in 2021 said LTAT’s priority is on the govern-
managed internally. after paying 3.5% in 2020, 2.5% in 2019 ance side.
and 2% in 2018.
“Besides [exposure to the international “We are putting in place the new pol-
equity market], we are also increasing our “So, what we will see over the next five icies and guidelines for internal practic-
exposure in fixed income, from the current years is LTAT achieving its objective of es relating to investment, finance risk
[allocation at] about 8% to about 20%. the strategic asset allocation framework, management [and] human capital to
The management of the fund [for fixed ensure the due processes are adhered
income investments] will also be done to,” he said.
through both internal and external fund
managers,” Nazim said. Nazim said LTAT has set up an integ-
rity department, with an integrity com-
Nazim was speaking during the MIDF mittee in place at the board level, to work
closely with the Malaysian Anti-Corrup-
tion Commission (MACC).

KUALA LUMPUR (May 12): Petroliam Petronas says sides China’s Covid-19 outbreak.
Nasional Bhd (Petronas) said a weaken- weakening At the time of writing on Thursday
ing ringgit against the US dollar “gener-
ally has a positive impact” on its financial ringgit ‘generally’ (May 12), the ringgit had weakened
results as most of the Malaysian national positive for to 4.3878 against the US dollar from
oil company’s revenue is denominated in Wednesday’s close at 4.3770.
US dollars. financials despite
higher domestic The exchange rate stayed between
In an emailed reply to The Edge’s en- operating cost 4.3752 and 4.3878 so far on Thursday.
quiries, Petronas said a weaker ringgit Over the past one year, the local curren-
against the US dollar is expected to have BY SULHI KHALID cy was transacted at between 4.1070 and
a minimal impact on its international in- theedgemarkets.com 4.3878 against the greenback.
vestments and operations as the company’s
income and spending are denominated in Petronas’ financials had improved in the
the greenback. financial year ended Dec 31, 2021 (FY21).

“Petronas’ domestic investments and According to the company’s website,
operations may, however, experience high- its FY21 profit after tax stood at RM48.6
er operational cost as a result of the weak- billion compared to a loss after tax of
ening ringgit. RM21.03 billion the year before.

“In general, Petronas’ capital allocation Revenue rose to RM247.96 billion
is split equally between international and from RM178.74 billion.
domestic operations, encompassing our
investments in core and non-traditional In a statement issued in conjunction
businesses,” the company explained. with the announcement of the FY21 re-
sults on March 1, 2022, the company said
The local note has weakened against a the oil and gas industry is expected to
strengthening US dollar in anticipation continue operating in a challenging envi-
of US interest hikes to curb inflation ronment due to market uncertainties and
and as investors seek the greenback as a heightened geopolitical risks.
haven at a time when they see downside
risks to global economic growth stem- “Amid these challenges, the group will
ming from the Russia-Ukraine war be- focus on executing our growth plans and
sustainability efforts while remaining com-
mitted to delivering operational and com-
mercial excellence,” Petronas said.

FRIDAY MAY 13, 2022 5 THEEDGE CEO MORNING BRIEF

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Greatech 1Q amounting to RM14.17 million, share Pentamaster
net profit tumbles grant expenses of RM990,000 and low- 1Q net profit
er net foreign exchange gain of RM3.09 jumps 27% to
37.99% to million. RM20.4m on
RM28.93m despite higher revenue
The group has recorded a lower GP of
revenue rise RM35.21 million compared to RM49.38 BY SULHI KHALID
million in the prior year’s corresponding theedgemarkets.com
BY TAN SIEW MUNG quarter, as well as lower GP margin of
theedgemarkets.com 34.47% versus 51.9% previously. KUALA LUMPUR (May 12):
Pentamaster Corp Bhd’s net profit
Greatech Technology Bhd The normalised GP margin without net jumped by 27% in the first quarter
warranty impact was 36.27% for 1QFY22 ended March 31, 2022 (1QFY22)
Vol (mil) RM and 46.41% for the prior year’s corre- to RM20.4 million from RM16.07
2.5 8 sponding quarter. million a year ago, underpinned by
higher revenue contribution from its
2 6 According to the group, 1QFY22’s mar- automated test equipment segment.
gin was partly impacted by increase in pro-
1.5 4 ject expenditures as the new projects secured Earnings per share grew to 2.86
RM5.20 were in the fabrication and assembly stage. sen from 2.26 sen, its Bursa Malaysia
RM3.38 filing showed.
1 2 The margin was also dragged by an in-
crease in subcontract charges to ensure Quarterly revenue climbed by
0.5 May 12, 2022 timely delivery of projects. 26.8% to RM146.02 million from
RM115.17 million.
0 The group said Covid-19 new variant
May 12, 2021 related operational inefficiencies arising The group did not declare any
from closed contact quarantine measures dividend in the quarter under re-
Source: Bloomberg to minimise exposure has reduced man- view.
power capacity and added subcontract cost
KUALA LUMPUR (May 12): Greatech to projects to meet delivery. On a quarterly basis, the quantum
Technology Bhd said Thursday (May 12) of growth was smaller. The group’s
that its net profit for the first quarter end- The group noted that the prior year’s net profit increased by 3.81% against
ed March 31, 2022 (1QFY22) tumbled corresponding quarter also benefited from RM19.65 million reported in the im-
37.99% to RM28.93 million, due to the favourable GP margin mix realised from mediate preceding quarter (4QFY21)
decline in gross profit (GP), share grant ex- installation and commissioning revenue. while revenue was 19.2% higher
penses and lesser net foreign exchange gain. compared with RM122.49 million
Coming off a strong year in 2021, the in 4QFY21.
Its revenue for 1QFY22, however, group said its business continued to be
rose 7.37% to RM102.16 million from influenced by persistent supply chain bot- Moving forward, Pentamaster said
RM95.14 million a year ago, its filing to tlenecks, which not only led to rises in the while the supply chain environment
Bursa Malaysia showed. cost of materials, components and freight, remains disruptive and challenging,
but also impacted the project execution it will continue to work closely with
The group did not declare any dividend and production efficiencies. both its customers and suppliers for
for the latest quarter. better capacity planning and visibility.
The group believes that as the condi-
According to the group, its revenue from tions of the supply chain improve, it will “The current immediate aim for
single automated equipment (SAE) and enable execution and order conversion of the group is to be able to deliver
provision of parts and services (PSS) in- ongoing customers, which will accelerate its order as scheduled barring any
creased RM11.32 million and RM680,000 its growth in revenue throughout 2022. significant adverse impact from the
respectively in 1QFY22. supply chain bottlenecks, logistics
Despite geopolitical tensions, persistent constraints and geopolitical knots.
The increase of both SAE and PSS rev- Covid-19 pandemic with renewed lock-
enue was primarily from revenue generat- downs in Shanghai, China, global supply “Overall, the group is optimistic
ed in electric vehicle (EV) energy storage, chain constraint and increasingly infla- about achieving another record year
driven by several orders secured in the third tionary environment, it said the demand of business growth while placing its
quarter of 2021 for invoicing in early 2022 for environmental and sustainability related continuous focus on developing a
and increased sales of parts and services. solutions continued to benefit from the in- broader product portfolio across key
crease in investment driven by technological markets and segments, while upskill-
This,nevertheless,was offset by a RM4.99 change in e-mobility and energy industry. ing its workforce,” it said.
million decrease in revenue generated from
production line systems due to the length- The group anticipates that supply-chain Pentamaster’s share price
ening global supply chain which negatively constraints will continue to pressure its dropped six sen to RM3.02, giving
impacted the cycle time of the projects. industries. it a market capitalisation of RM2.15
billion. Year to date, the stock has
Meanwhile, it said the lower profit was “The group is working closely with its fallen by 46%.
primarily contributed by the decline of GP suppliers to address these challenges and
remain focused on executing its strategy
for long-term profitable growth,” it said.

As of May 9, 2022, the group’s order
book stood at RM467 million, which is
expected to last until the first half of 2023.

Greatech closed two sen or 5.59% lower
at RM3.38 onThursday, valuing the group
at RM4.48 billion.

Year to date, the counter has fallen
51.58%.

FRIDAY MAY 13, 2022 6 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 12): Top Glove Top Glove which about 5.4 billion new shares were listed
Corp Bhd executive chairmanTan Sri Dr Lim chairman buys and quoted on Bursa Malaysia and the Sin-
Wee Chai has raised his stake in the rubber 1.5 mil more gapore Exchange on Sept 7, 2020, according
glove maker after buying more shares in the shares as price to the company’s Bursa filing on that day.
company, which has seen its share price fall to
its lowest in over two years on broader market dives to Looking back, Top Glove was closely
weakness and at a time when Covid-19-driven 29-month low watched as beneficiary of the Covid-19
demand for glove is seen normalising as glob- outbreak which started in early 2020 as
al vaccination progress leads to anticipation BY JUSTIN LIM demand for rubber gloves, seen as a crucial
that the Covid-19 outbreak can be curbed. theedgemarkets.com personal protective equipment, surged to
curb the global spread of Covid-19.
According toTop Glove’s shareholding Top Glove Corp Bhd RM
change updates filed with Bursa Malaysia However, Covid-19-driven demand for
on Wednesday (May 11, 2022), Lim on 10 gloves is now seen normalising as global
Wednesday raised its direct stake in Top vaccination progress leads to anticipation
Glove to 27.392% after acquiring 1.5 mil- 8 that the Covid-19 outbreak can be curbed.
lion shares at RM1.53 each.
6 Such sentiment is reflected in Top
The filing showed that Lim also owns Glove’s share price. On Thursday (May
an indirect stake of 8.495% inTop Glove, 4 RM1.49 12, 2022), Top Glove’s share price also
which is the world’s largest rubber glove RM2.66 May 12, 2022 took cue from broader market weakness
manufacturer by production capacity. as US inflation data dented world markets.
2
On Thursday (May 12, 2022), Top The FBM KLCI tumbled more than 1%
Glove’s share price fell four sen or 2.61% 0 when markets closed onThursday (May 12,
to RM1.49 -- the lowest level since Dec 16, May 12, 2020 2022) while Bursa’sTechnology index was
2019 when the stock closed at RM1.48. the worst hit among the bourse’s 30 gaug-
Source: Bursa Malaysia es as forecast-beating US inflation dented
Based on Top Glove’s 8.01 billion out- world markets, seen taking cue from an-
standing shares, its latest closing share price ticipation of US interest rate hikes to fight
of RM1.49 values the company at about rising consumer prices.
RM11.93 billion.Top Glove’s share price
has fallen from its record high closing price At 5pm, the KLCI closed down 17.13
of RM9.60 in October 2020, valuing the points or 1.1% to 1,538.8 while Bursa’s
group at RM78.17 billion then.The glove Technology index fell 4.44% to become
maker’s market capitalisation has evapo- the worst-hit gauge in percentage terms.
rated 85% from the peak. All 30 Bursa indices ended lower.

Top Glove’s share price has been adjusted KLCI component Top Glove is also a
for its two-for-one bonus share issue under constituent of Bursa’s Heath Care index,
which finished down 0.6%.

WASHINGTON, DC (May 12): Prime PM Ismail Sabri IT conference in Penang in September.
Minister Datuk Seri Ismail Sabri Yaakob rolls out red carpet “I hope this congress will benefit Malay-
onWednesday (Thursday, May 12 in Ma-
laysia) rolled out the red carpet for Amer- for American sians in terms of technology,” he said, add-
ican investors and businessmen, and pre- investors, ing that participants from all over the world,
sented Malaysia as a preferred investment eyesTesla including speakers from America’s space
destination. agency, would converge at the congress.
BY JAMALUDDIN MUHAMMAD
He welcomed them, especially the For- Bernama In another meeting at the same venue,
tune 500 companies, to invest or increase the Malaysian premier met Dr Adam S. Po-
their investment, namely in economic digital, Malaysia seen as important trading sen, president of the Peterson Institute for
green technology and electric car sectors. partner, Penang to host WCIT International Economics, as well as East-
“They regard Malaysia as an important trad- West Center vice-president Dr P. Limaye.
“I’ve suggested toTesla to invest in Ma- ing partner of the United States,” the prime
laysia in producing electric cars,” he told minister said of the US-ABC reaction. The prime minister also held a separate
Malaysian journalists after meetingAmbassa- discussion with Dr Kurt M. Campbell,
dorTed Osius, president and chief executive Later, Ismail Sabri has a separate ses- deputy assistant to the US President and
officer of the United States (US)-ASEAN sion with World Information Technology coordinator for Indo-Pacific Affairs in the
Business Council (US-ABC) at a hotel here. and Services Alliance (WITSA) secre- National Security Council.
tary-general Dr James H. Poisant at the
Set up in 1984, the US-ABC repre- same venue. Ismail Sabri told Dr Campbell that all
sents 170 major American businesses in ASEAN member countries should be in-
Southeast Asia. The prime minister saidWITSA would volved with the US-led initiative Indo-Pa-
hold the World Congress on Information cific Economic Framework (IPEF).
The prime minister, who arrived here Technology (WCIT), the world’s largest
on the previous day, is on a four-day work- At the moment, some countries from
ing visit to the US, during which he would the grouping are not in the picture for the
meet with President Joe Biden and ASE- major trade and economic initiative for the
AN leaders. Indo-Pacific region.

Ismail Sabri said he has asked the US- “Malaysia is of the view that all ASE-
ABC to play a bigger role in attracting in- AN countries should be involved,” he said,
vestment to ASEAN, especially Malaysia. adding that Kuala Lumpur has agreed in
principle to join the IPEF.

FRIDAY MAY 13, 2022 7 THEEDGE CEO MORNING BRIEF

FRIDAY MAY 13, 2022 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 12): Bursa Ma- Bursa Energy Wednesday trades.
laysia’s Energy index, which tracks oil and index up the most “I expect the [prices of] O&G stocks [on
gas (O&G) companies’ share prices, rose
about 2% on Thursday (May 12) to be- after oil prices Bursa] to [be] range bound depending on
come the top percentage gainer among jumped 6% the Russia-Ukraine geopolitical develop-
the bourse’s 30 gauges following crude oil ment,” the analyst said.
prices’ 6% overnight jump on Wednesday BY TAN SIEW MUNG
due to crude oil market uncertainty after theedgemarkets.com At Bursa’s 12:30pm break on Thurs-
flows of Russian gas to Europe dropped day, Bursa’s Energy index settled up 16.16
and as Russia sanctioned some European nine cents to US$107.42 a barrel by 0013 points or 2.08% at 792.42 to be the top
gas companies at a time when there is no GMT.WTI crude futures fell 13 cents to percentage gainer among the bourse’s 30
end in sight to the Russia-Ukraine war, US$105.58 a barrel. gauges.
which began on Feb 24, 2022.
“Prices have risen over 35% so far this Worst hit was the Technology index
It was reported that US crude oil fu- year, bolstered by supply concerns after which fell 2.96% while the FBM KLCI
tures settled at US$105.71 per barrel, up Russia’s invasion of Ukraine in February,” rose 0.07%.
U$5.95 or 5.96% overnight on Wednes- Reuters reported.
day, while Brent crude oil futures settled at At a glance, Energy index components
US$107.51 a barrel, up US$5.05 or 4.93%. OnThursday, an analyst told theedgemar- Hengyuan Refining Company Bhd and
kets.com that the Bursa Energy index’s gain Petron Malaysia Refining & Marketing
“Oil prices eased in early Asian trade on followed crude oil prices’ rise in overnight Bhd’s share prices settled up among Bur-
Thursday, taking a pause after rising more sa top gainers.
than 5% in the previous session following
new Russian sanctions on some Europe- Hengyuan climbed 44 sen or 6.54%
an gas companies. Brent crude futures fell to RM7.17 while Petron Malaysia rose
29 sen or 4.83% to RM3.96 to become
Bursa’s second and fourth largest gainers
respectively.

KUALA LUMPUR (May 12): CIMB CIMB inks will become the first home-grown bank
Group Holdings Bhd said it has entered MoU with to collaborate with the bourse on “#fi-
into a memorandum of understanding Bursa to nancing4ESG”.
(MoU) with Bursa Malaysia Bhd to ac- expedite ESG
celerate the adoption of environmental, adoption among CIMB Group chief executive officer
social and governance (ESG) practices Malaysian PLCs (CEO) Datuk Abdul Rahman Ahmad
among Malaysian public listed compa- said Bursa Malaysia’s “#financing4ESG”
nies (PLCs) via the “#financing4ESG” BY IZZUL IKRAM initiative is critical for the financial sec-
initiative. theedgemarkets.com tor to encourage ESG adoption within
the corporate sector through sustaina-
In a statement on Thursday (May 12), “CIMB may also reference the F4GBM ble finance.
CIMB said that under the MoU, the bank framework and ratings model in structur-
will collaborate with the bourse to offer ing sustainability-linked transactions with He noted the initiative will help en-
sustainable finance offerings for Malay- the relevant SPTs for corporates that week hance the long-term resilience and com-
sian PLCs in alignment with the ratings to raise financing or enter into a derivative petitiveness of Malaysian businesses and
model of the FTSE4Good Bursa Malay- transaction whilst also strengthening their in tandem support the nation’s transition
sia (F4GBM) index. ESG adoption,” it added. towards a net-zero economy.

“The collaboration aims to help Ma- CIMB claimed that via this MoU, it “This strategic collaboration is firmly
laysian PLCs improve their sustainability in line with CIMB’s sustainability agen-
performances and ratings for inclusion da under our Forward23+ strategic plan.
into the index, and at the same time sup- We look forward to working closely with
port their transition towards more sus- Bursa Malaysia and engaging Malaysian
tainable business practices through the PLCs towards advancing our shared sus-
various green, social, sustainable impact tainability agenda, and in doing so sup-
products and services (GSSIPS) offered port the Malaysian government’s com-
by the group,” it added. mitment to achieving carbon neutrality
by 2050,” Abdul Rahman said.
CIMB said Bursa Malaysia will also
coordinate joint engagement and on- Bursa Malaysia CEO Datuk Muham-
boarding sessions for eligible PLCs to- ad Umar Swift said that as ESG com-
gether with CIMB on the F4GBM frame- pliance and disclosure have become a
work, as well as the group’s solutions global demand, the bourse is pleased to
under its GSSIPS framework. have CIMB join it in its journey to ena-
ble Malaysian PLCs to become regional
The group noted that the solution may leaders in the ESG space.
include its existing ESG offerings such as
sustainability-linked loans and sustaina- “Being one of the largest banks in Ma-
bility-linked treasury solutions for corpo- laysia, CIMB is in a position of influence
rate clients, which it said encourage sus- to encourage its clients to adopt ESG
tainable practices by providing financial best practices,” it noted.
incentives to the clients based on their
achievement of pre-agreed sustainability CIMB shares closed five sen or 0.98%
performance targets (SPTs). lower at RM5.05 on Thursday, giving the
group a market capitalisation of RM52.89
billion.

FRIDAY MAY 13, 2022 9 THEEDGE CEO MORNING BRIEF

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Petronas Global’s Plaquemines LNG facility (in Lou- Govt needs to
subsidiary buys siana),”Venture Global LNG said in a state- regulate rising
ment onWednesday (May 11). prices of goods
LNG from
Venture Global Venture Global LNG, however, did not to mitigate
specify in the statement, the value of the 20- inflation risks
LNG year deal with PLL.
Bernama
BY HAILEY CHUNG Petronas vice president of LNG market-
theedgemarkets.com ing and trading Shamsairi Ibrahim said in the KUALA LUMPUR (May 11): The
statement that Petronas looks forward to the government needs to regulate the rise
KUALA LUMPUR (May 12): Petroliam long-term LNG partnership with Venture in prices of goods to mitigate inflation
Nasional Bhd (Petronas) subsidiary Petronas Global LNG under the SPA which will sup- risks, said an economist.
LNG Ltd (PLL) is purchasing one million port the growth and accessibility of natural gas.
tonnes per annum of liquefied natural gas The Institute for Democracy and
(LNG) from US-basedVenture Global LNG “With the growing demand for energy se- Economic Affairs (IDEAS) Malaysia
under a 20-year sales and purchase agreement curity, the addition of the new volume certain- director of external relations Dr Zokhri
(SPA) between PLL andVenture Global LNG. ly enhances Petronas’ global supply portfolio Idris said regulation on the part of gov-
and demonstrates our support of the ener- ernment and the relevant authorities is
“Today (May 11), Venture Global LNG gy transition towards a lower carbon future,” to mitigate rising prices to avoid “hyper
and PLL, a subsidiary of the Malaysian Shamsairi said. inflation”.
state-owned oil and gas company, Petronas,
announced the execution of a new 20-year Venture Global LNG chief executive of- He said regulations are needed to
SPA for the purchase of one million tonnes ficer Mike Sabel said the contract with PLL avoid a sharp spike in prices and to en-
per annum (MTPA) of LNG from Venture represents a significant expansion of Venture sure that the government can control
Global LNG’s existing customer base in Asia. the inflation rate.

“This contract represents a significant ex- “For example, what the authorities
pansion of our existing customer base in Asia can do is to regulate oil subsidies because
and we particularly look forward to Petronas we know that oil and the cost of raw ma-
bringing our competitive, lower carbon ener- terials such as fuel are very important
gy into Southeast Asia, a region with rapidly cost components of the final product.
growing gas demand,” Sabel said.
“We need to see how our various ef-
KUALA LUMPUR (May 12):The Selangor SIBS 2022 forts can result in reducing inflation risks
International Business Summit (SIBS) 2022 targets to achieve so that (this issue) does not become ex-
is aiming to achieve RM350 million of poten- cessively worrying, that the situation is
tial negotiated sales following its astounding RM350m unsalvageable,” he said during an inter-
success last year. of potential view on Bernama TV’s ‘Ruang Bicara’
negotiated sales programme entitled “Living with Infla-
The largest business summit initiated by tion” on Wednesday night.
the Selangor state government and organ- BY SYAFIQAH SALIM
ised by Invest Selangor Bhd will continue its theedgemarkets.com Zokhri said the government and the
momentum with an estimated 850 booths, authorities need to take proactive steps in
according to a statement by Invest Selangor. ers to restart their business in the region,” monitoring the price increases to prevent
said Hasan. abuse or manipulation by certain parties.
“SIBS 2022 targets RM350 million of
potential negotiated sales with at least 30,000 He also said SIBS provides networking “We have to trace a product’s path
visitors turnout and participation from at opportunities for all participants across mul- from the beginning until it reaches the
least 850 booths,” said Invest Selangor chief tiple sectors to meet and collaborate, using consumer and see how we can minimise
executive officer Datuk Hasan Azhari Idris. Selangor as the gateway to Asean. the cost,” he said.

According to Invest Selangor, SIBS 2021 “The summit provides the most condu- Meanwhile, economic analyst As-
recorded RM217.6 million of potential nego- cive investment and business environment sociate Prof Dr Mohd Yusof Saari said
tiated sales, nearly reaching the sales record of for Malaysia as a whole and for Selangor, short-term intervention measures by the
RM247 million in the previous SIBS 2019. specifically. Participants could use SIBS as a government and authorities in the food
platform to network with potential custom- products sector should not disrupt the
SIBS 2021 has also surpassed the initial ers and business partners from the region as market.
set target of 10,000 visitors with a turnout of Invest Selangor, the investment arm of the
25,410 visitors, ranging from business own- Selangor government, would invite and host Therefore, long-term intervention is
ers, importers, wholesalers, distributors to foreign buyers to attend the summit as well needed to ensure that price manipula-
retailers and members of the public, it said. as pre-arrange one-on-one business meet- tion by certain parties can be resolved.
ings,” he added.
The SIBS is a platform for ASEAN and “The government must also have
international businesses to explore the mas- The four-day summit will be hosted in measures to protect the low-income
sive potential of the Malaysian market and Kuala Lumpur Convention Centre from Oct group, for example, introduce kedai rak-
serve as a springboard to tap into the broad- 6 to Oct 9, 2022. yat (people’s shops) offering affordable
er Asean market, home to over 600 million prices as an option to bring relief to com-
consumers and more than 200 of the world’s munities impacted by price increases,”
largest companies. he said.

“SIBS can be the key global trading hub
initiative by Selangor to assist not only ex-
porters and manufacturers from Selangor
but also from other states and regional play-

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OPR hike to have positive impacts
on banks’ earnings, say analysts

KUALA LUMPUR (May 12): Bank Ne- BY TAN SIEW MUNG Any potential negative impact on loan
gara Malaysia’s (BNM) 25 basis points theedgemarkets.com demand and current account saving ac-
(bps) overnight policy rate (OPR) hike is counts (CASA) growth is expected to be
likely to have a positive impact on bank In her view, Alliance Bank, Maybank, minimal, it added.
earnings, said analysts. RHB and CIMB Group Holdings Bhd are
the biggest beneficiaries. Aside from that, it is still optimistic on
Hong Leong Investment Bank Research banking industry players’ prospects which
analyst Chan Jit Hoong said banks are seen “We reaffirm our overweight stance would be underpinned by lower credit
to benefit from the OPR hike and net in- on the banking sector. With an earlier costs in 2022, potential credit writebacks
terest margin (NIM) is expected to widen. rate hike, there will be a minor enhance- in 2023 and stronger loan demand.
ment to the profit forecasts (<1%) in our
“We estimated every 25bps OPR hike stock universe, due to the timing difference While maintaining positive on the sec-
would bump up sector NIM by five to (previously, we priced-in a 50bps rate hike tor, its top picks are Public Bank and
six bps and profit forecast by 4% to 5%,” impact in our second half of 2022 earn- BIMB.
he said. ings),” she said.
TA Securities analystWong Li Hsia also
According to him, the big gainers are She also expects the sector core net said in a note that she believes the rate
Alliance Bank Malaysia Bhd and Bank profit to expand 7.5%/14%/4.5% for hike will bode well for the banking sec-
Islam Malaysia Bhd (BIMB), while the 2022/2023/2024, driven by steady ex- tor’s overall earnings, which she estimates
small gainers are Affin Bank Bhd and Pub- pansion in fund-based income (with the would increase by around 2% for every
lic Bank Bhd. impact of another 25bps rate hike priced 25bps rise in the OPR.
in from the second half of 2022 onwards)
“We believe the sector’s risk-reward and lower impairment allowances. “Loan yields would immediately be ad-
profile is skewed to the upside as valua- justed. That said, banks with higher vari-
tions are undemanding and we are only Likewise, MIDF Research said in a note able rate loan mix such as Alliance Bank,
at the cusp of an OPR hike upcycle with that banking NIMs are expected to benefit RHB, Hong Leong Bank and CIMB
economic recovery, which benefits banks. from the earlier-than-expected OPR hike should benefit more than its peers.
in varying degrees.
“As such, we remain bullish and employ “While at a more gradual pace, deposit
a rather broad stock buying strategy in the According to the research house, the rates would also reflect the increase as the
first half of 2022,” he said. underlying factors include proportion of fixed deposits mature and subsequently
local, floating interest-rate loans as well repriced at the higher rates.
Thus, he retained an overweight rat- as percentage of net income derived from
ing on the banking sector and has “buy” non-interest income (NII). “As such, banks with a larger CASA
calls on Malayan Banking Bhd (Maybank), mix, such as Alliance Bank, Maybank and
Public Bank, RHB Banking Group, BIMB, For MIDF, BIMB and Affin Bank are CIMB, would be able to enjoy some cush-
and Affin Bank. set to be the core beneficiaries of the OPR ion from the rate hike,” she said.
hike.
Meanwhile, Maybank Investment Bank In terms of earnings impact, she be-
analyst Desmond Ch’ng said in a note that The research house is not expecting lieved that Alliance Bank and CIMB would
he estimated that every 25bps hike in the any notable decline in loan growth in the be the biggest beneficiaries, followed by
OPR would raise earnings for banks by immediate future, given still-robust lead- Maybank, RHB Bank and AMMB.
1% to 3%. ing indicators (loan application growth in
March 2022: +4.6% year on year, +47.8% She also maintained an “overweight”
Key beneficiaries, in his view, would be month on month) and the strong recov- call on the banking sector.
Alliance Bank, RHB, AMMB Holdings ering trend of both consumer and corpo-
Bhd and Public Bank, which could see rate demand. “The instalment on loans would rise
an uplift in earnings of about 2.6% each on the back of the increase in borrowing
from such a move. MIDF also noted banking players’ earn- costs.While this would reduce cash flows,
ings and dividend offerings are set to ben- we do not expect it to have a significant
“At the lower end of the spectrum efit from higher NIMs. impact on repayment capacity.
would be Hong Leong Bank Bhd, we be-
lieve, with an estimated 1% enhancement “We continue to observe that the sys-
to earnings,” he added while maintaining tem’s asset quality is healthy and stable.
positive on the sector. Furthermore, we do not envisage this
25bps rate hike to derail loan growth,
He nevertheless maintained his earnings which we anticipate to increase by 5.8%
forecasts for now, given that a more im- in 2022, within BNM’s 5.4% to 6.4% fore-
mediate concern would be the prospect of cast,” she said.
marked-to-market losses from rising bond
yields. Most banking stocks were up onThurs-
day morning, following BNM’s earli-
Affin Hwang Investment Bank analyst er-than-expected rate hike.
Tan Ei Leen also said in a note that based
on her simulation of a 25bps hike of the At the time of writing, Hong Leong
OPR, the Malaysian banking sector on Bank rose eight sen or 0.39% to RM20.62;
an aggregate basis is expected to benefit Public Bank climbed one sen or 0.22% to
by around 2.5% to 2.7% at the net profit RM4.66; Maybank grew four sen or 0.44%
level, while sector NIM is expected to be to RM9.14; RHB increased by three sen
enhanced by circa 2.5bps to 3bps. or 0.49% to RM6.18; BIMB expanded
one sen or 0.34% to RM2.96.

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KUALA LUMPUR (May 11):The United US, Malaysia ink do-Pacific Economic Framework. In par-
States (US) Department of Commerce’s Memorandum ticular, they discussed the importance of
Secretary Gina M Raimondo and Ma- of Cooperation the Framework being inclusive and ways
laysia’s Senior Minister for International to strengthen for the Framework to deliver economical-
Trade and Industry Datuk Seri Mohamed semiconductor ly meaningful benefits, including through
Azmin Ali signed the US-Malaysia Memo- technical assistance and capacity building.
randum of Cooperation (MOC) on Semi- supply chain
conductor Supply Chain Resilience. resilience The US Department of Commerce and
Malaysia’s Ministry of InternationalTrade
The MOC aims to provide guiding prin- Bernama and Industry look forward to hosting fu-
ciples for both nations as they collaborate ture exchanges with stakeholders under
on strengthening the semiconductor sup- a roundtable with industry experts to dis- the MOC.
ply chain resiliency efforts. cuss current and long-term supply chain
challenges, as well as opportunities for the
In signing the MOC, the Secretary two nations and the global economy.
and Senior Minister acknowledged that
the US-Malaysia cooperation is a crucial During their meeting, Raimondo and
element of creating resilient, secure, and Mohamed Azmin also reaffirmed the im-
sustainable semiconductor supply chains. portance of the US-Malaysia trade and
investment relationship following 65 years
“Building on the Secretary’s trip to of diplomatic relations and discussed areas
Malaysia in November 2021, the MOC to enhance cooperation.
will strengthen the growing partnership
between both governments and the sem- They also exchanged views on the In-
iconductor industry,” they said in a joint
statement here on Wednesday.

The MOC also aims to increase transpar-
ency and trust, as well as promote investment
in the semiconductor supply chain.

Demonstrating their commitment to
the activities outlined in the MOC, the
Secretary and Senior Minister convened

WASHINGTON, DC (May 12): Global Insulet to make stakeholders to upskill and reskill local talent.
leader in tubeless insulin pump technology huge investment “I expressed to Insulet that Malaysia
Insulet Corporation has planned to estab- in Malaysia, likely
lish an insulin management facility in Johor is highly appreciative of this opportunity
on June 2 with a “significant amount” of to create 500 and looks forward to grow together with
investment, said Senior Minister and In- quality jobs for them,” he tweeted.
ternational Trade and Industry Minister locals, says Azmin
Datuk Seri Mohamed Azmin Ali. According to his tweet, Insulet’s invest-
BY NIAM SEET WEI ment would indeed open up vast opportu-
Azmin said the initial phase of the in- Bernama nities for Malaysia, particularly in driving
vestment is expected to create about 500 demand for local parts and components
quality high-skilled jobs for local talent. Insulet is an innovative medical device of medical device manufacturers.
company producing Omnipod, an auto-
“The success of this investment is not mated device used for diabetic patients to “As a matter of fact, Alpuche informed
just in capital investment, but also to help administer insulin. me that Omnipod consists of 72 compo-
build the supply chain ecosystem for our nents, and they will outsource some of the
small and medium enterprises,” he told Earlier on Wednesday, Azmin held a components to local vendors in Malaysia.
Bernama on the sidelines of the Hari Raya meeting with Insulet chief operating of-
Aidilfitri celebration with Prime Minister ficer Charles Alpuche. “This will indeed open doors to bounti-
Datuk Seri Ismail Sabri Yaakob here on ful possibilities for our local vendors to be
Wednesday evening (May 11). In a tweet, Azmin said Insulet’s de- integrated into the global supply chain of
cision to choose Malaysia was founded this industry,” according to Azmin.
Azmin is currently on a 10-day trade upon the nation’s excellent talent pipe-
and investment mission in the US since line and accessibility to ports to support In a separate tweet, Azmin shared that
May 8, while Ismail Sabri arrived here on the supply chain. he had held a separate meeting with Bos-
Tuesday for a four-day working visit, in- ton Scientific Corporation, a leader in the
cluding meeting US President Joe Biden “Insulet has expressed keen interest to- medical device sector earlier onWednesday.
and ASEAN leaders. wards developing the local ecosystem and
further advance knowledge transfer pro- “Since making its presence in Malay-
According to Azmin, Insulet has a long- grammes through collaborative partner- sia in 2015, Boston Scientific has contin-
term investment plan in Malaysia as it sees ships with universities and other industry ued to expand, powering the local medical
the country as a medical device manufac- industry through strategic collaborations
turing hub for it to cater to demand from with local vendor development efforts and
not only Malaysia, but also from the region capacity building programmes.
and other export markets.
“With health gaining increasing promi-
He said a “big announcement” will be nence in the post-pandemic world, its pres-
made on June 2 in conjunction with the ence in Malaysia will continue to positively
launch of the new facility in Johor. impact the development of our medical
device industry, adding further value to
the ecosystem,” Azmin tweeted.

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173 Covid-19 as well as those in high-risk groups who ex- Yinson forms JV with
patients fully perience severe Covid-19 infection such as clean energy solutions
recovered after diabetic patients, patients with high blood
taking Paxlovid, pressure, kidney problems, asthma as well firm to develop
says Khairy as chronic lung, heart and cancer patients. 250MW solar projects

Bernama Khairy said patients in the group can go BY SHAZNI ONG
to the CAC at selected health clinics and gov- theedgemarkets.com
KUALA LUMPUR (May 12): As of May ernment hospitals for suitability assessment
9, total of 173 Covid-19 patients who were before they can begin Paxlovid treatment. KUALA LUMPUR (May 12): Global en-
given antiviral drug Paxlovid treatment had ergy infrastructure and technology company
fully recovered with no side effects, said “This medication should be started imme- Yinson Holdings Bhd through its subsidi-
Health Minister Khairy Jamaluddin. diately within five days of the onset of symp- aryYR C&I Pte Ltd (Yinson Renewables)
toms for optimal effectiveness to reduce the is forming a joint venture with Plus Xner-
He said the antiviral drug had been used risk of more severe infection complications,” gy Holding Sdn Bhd via its wholly-owned
since April 15 to treat Covid-19 patients at said Khairy. Meanwhile, he said those aged subsidiary Plus Xnergy Services Sdn Bhd
512 Covid-19 assessment centres (CACs) in 60 and above can receive a second Cov- to develop and implement commercial and
health clinics and 78 government hospitals. id-19 vaccine booster dose voluntarily four industrial (C&I) rooftop solar photovoltaic
to six months after their first booster jab. (PV) projects in Malaysia.
“To date,the priority of Paxlovid treatment
is for the high-risk group of Covid-19 patients The same applies to those between 18 This follows the collaboration agree-
experiencing mild to moderate symptoms,” and 59 with clinical risk of severe disease ment signed in August 2021 when both
he said in a statement onThursday (May 12). (such as chronic heart, lung, kidney, liver parties expressed their intention to enter
disease and others) after discussing with into a business alliance to invest and de-
He added that Covid-19 patients who will a registered medical practitioner, he said. velop up to 250MW of PV C&I projects
be prioritised include those who are aged 18 within and beyond Malaysia.
and above, patients in Categories 2 and 3, “The Ministry of Health would also
those who do not require oxygen therapy like to inform that the intake of the second In a statement on Thursday,Yinson said
booster dose is voluntary,” he said. the joint venture will strategically leverage on
the group’s network, worldwide presence and
Teenagers aged between 12 and 17 with experience in the energy space, as well as Plus
clinical risk of severe disease could also Xnergy’s strength as a leading solar PV system
be offered a first booster dose four to six provider and engineering, procurement, con-
months after receiving the primary dose struction and commissioning (EPCC) con-
injections after discussing with a registered tractor in Malaysia. “With the formalisation
medical practitioner. of the joint venture, we hope to accelerate
the implementation of clean energy in the
ALOR SETAR (May 12): Employers with Employers with C&I sector, leveraging on our joint strengths.
fewer than five workers have been exempt- fewer than 5 workers
ed from the implementation of the Mini- “This will reduce energy costs for com-
mum Wage Order (PGM) 2022 until the given minimum mercial energy users and lend support to
end of the year, said Deputy Human Re- wage exemption the government’s target of ensuring 40% of
sources Minister Datuk Awang Hashim. till year end — the country’s energy capacity is made up of
Awang Hashim renewable energy generation by 2035,” said
He said, however, that employers involved Yinson Renewables chief executive officer
in professional fields such as lawyers and doc- Bernama (CEO) David Brunt.
tors would still have to follow the stipulated
minimum salary of RM1,500 for each employ- benefits to 13 insured persons totaling more Plus Xnergy CEO Thang Chee Ke-
ee, regardless of how many workers they have. than RM26,100.“Socso Kedah has present- ong said the company remains confident
ed benefits to insured persons totalling over of meeting the goal of 250MW total in-
“All employers in any economic sector RM29 million in 2021 compared to more stalled capacity within five years despite
are not exempted from the implementa- than RM41 million in 2020.There was a de- the pandemic and fluctuating demand.
tion of the PGM which came into effect crease of 28.85% in total payments made, as
on May 1. But for other employers (with in 2020, the Covid-19 situation was still bad. “We are honoured to be furthering our
fewer than five workers), they have been alliance withYinson through this sharehold-
given a deferment until Dec 31 this year. “Besides that, Socso Kedah also made er agreement.With this in place, we deepen
payments to insured persons infected with our partnership and joint endeavour towards
“This relaxation is to give them some room Covid-19 at the workplace from January making both clean and lower costing energy
to make appropriate preparations regarding to April 2022 amounting to more than a possibility for businesses in Malaysia and
the payment of salaries that has been finalised RM7 million, with 4,633 cases,” he said. beyond.“We will also work towards securing
by the government,” he told reporters after projects with multinational companies based
the Social Security Organisation’s (Socso) In the meantime, Awang also called on in Malaysia, as many have already begun
Hari Raya Aidilfitri event here onThursday. self-employed individuals such as fishermen, their sustainability and environment, social
gardeners and rubber tappers to also contribute and governance journeys,” he said.
On April 27, the government gazetted to Socso to ensure they were protected in the
the implementation of the minimum wage event of an accident or disaster while working. Thang noted PXA will continue to in-
of RM1,500, which came into effect on vest in power purchase agreement (PPA)
May 1, for employers who employ five or solutions in order to empower businesses
more employees as well as employers who in their journey towards reducing their op-
carry out a professional activity classified erating expenditure (opex) whilst switching
under the Malaysia Standard Classification to cleaner energy.
of Occupations (MASCO) 2020.

Meanwhile, at the ceremony, he presented

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NEWS IN BRIEF

Gas Malaysia’s 1Q net profit grows 64% Sim Leisure Group to construct and operate new ESCAPE theme park in Perak
KUALA LUMPUR (May 12): Gas Malaysia
Bhd reported a 64.15% increase in its first KUALA LUMPUR (May 12): Developer and operator of theme parks based in Malaysia, Sim
quarterly net profit ended March 31, 2022 Leisure Group Ltd, which is also the licensee operator of Kidzania KL, is set to construct
(1QFY22) to RM91.32 million from RM55.63 and operate a new ESCAPE theme park located in Perak. In a bourse filing dated May 11 on
million a year ago, driven by higher gross Singapore’s stock exchange, Sim Leisure said it has entered into a theme park agreement in
profit, lower administrative expenses and relation to the project management of the construction and the operation and maintenance
higher contribution from the group’s joint of an environmentally sustainable ESCAPE theme park in Jalan Tanjung Tualang Batu Gajah,
venture companies. Earnings per share Perak. The agreement was entered by its wholly owned subsidiary, Sim Leisure Rock Sdn Bhd,
rose to 7.11 sen from 4.33 sen, according to with TT5 Park Sdn Bhd and its wholly owned subsidiary, TT5 Theme Assets Sdn Bhd. Pursuant
the company’s filing with the local bourse. to the agreement, TT5 Theme Assets shall construct and own the theme park while Sim Leisure
Quarterly revenue also jumped 54.78% to Rock shall develop the project and to operate, manage and maintain the park on behalf of TT5
RM1.78 billion compared with RM1.15 billion Theme Assets. This would be for an initial term of 30 years from the opening date, with an
in the same quarter last year. This was in option to mutually extend the term for a further period of 10 years. — by Shazni Ong
line with higher average natural gas selling
price in tandem with global market price, Kelington unit bags RM80m contract Sentral REIT 1Q NPI declines 2.9%
mitigated by lower volume of natural gas sold in China to RM30.51m
during the quarter under review. “Further KUALA LUMPUR (May 12): Sentral Real
increase in revenue was also due to higher KUALA LUMPUR (May 12): Kelington Estate Investment Trust (Sentral REIT)’s
firm capacity reservations by shippers for the Group Bhd’s wholly-owned unit, Kelington net property income (NPI) in the first
utilisation of the Natural Gas Distribution Engineering (Shanghai) Co Ltd, has bagged quarter ended March 31, 2022 (1QFY22)
System (NGDS) in the current quarter,” said a contract to perform gas hook up works in dropped by 2.9% to RM30.51 million from
Gas Malaysia. Looking ahead, Gas Malaysia Beijing, China. In a filing with Bursa Malaysia, RM31.41 million in the same period last
said it will continue to take prudent measures Kelington said the 123 million yuan contract year. Earnings per unit fell to 1.90 sen from
to maintain its operational efficiency, to (worth approximately RM80 million), was 1.93 sen previously, its Bursa Malaysia
remain competitive and seek opportunities awarded by China’s largest semiconductor filing showed on Thursday (May 12). Net
to grow its business, in line with the country’s foundry. The engineering solutions provider, distribution income also declined by 1.6%
transition to Covid-19 endemicity. The group’s however, did not specify the client. Kelington to RM20.36 million compared to RM20.7
board also expects Gas Malaysia to deliver said the project, commencing in May this million due to lower realised revenue net of
a satisfactory performance for the financial year and is expected to be completed by lower property expenses and finance costs.
year 2022 in tandem with the expected March 2024, will contribute positively to
economic growth. — by Syafiqah Salim its earnings and net assets in the financial The REIT, which was previously known
year ending Dec 31, 2022 (FY22), FY23 and as MRCB-Quill REIT, said its quarterly
Toyo Ventures says not aware of FY24. Kelington’s share price fell six sen to revenue fell by 5.51% to RM38.76 million
reason for UMA close at RM1.09 on Thursday (May 12). This from RM41.02 million, underpinned by
KUALA LUMPUR (May 12): Toyo Ventures gives the company a market capitalisation of lower contributions from Wisma Technip,
Holdings Bhd, which received an unusual RM703.32 million. Year-to-date, the stock Menara Shell and QB3-BMW. — by Sulhi
market activity (UMA) query from Bursa has declined 36.99%. — by Syafiqah Salim Khalid
Malaysia on Thursday (May 12), clarified that
it is not aware of any corporate development Malaysia’s 1Q wholesale, retail trade by retail trade which grew 3.2%,” he said
that would have caused the rise in its share sales rise 3.9% in a statement on the wholesale and retail
price and volume. The group also stressed that trade volume index for 1Q22 with 2015 as
it is in compliance with the Bursa Securities KUALA LUMPUR (May 12): Malaysia’s the base year. — Bernama
Listing Requirements on immediate disclosure wholesale and retail trade sales registered
obligations. The stock opened one sen or a growth of 3.9% year-on-year (y-o-y) in
1.49% higher at 68 sen and continued to surge the first quarter of 2022 (1Q22), said the
to hit a high of 83.5 sen before it pared its gains Department of Statistics Malaysia (DOSM).
towards the closing bell. The counter closed Chief statistician Datuk Seri Dr Mohd Uzir
eight sen or 11.94% higher at 75 sen, giving Mahidin said the increase was attributed
it a market capitalisation of RM88.28 million. to the motor vehicle sub-sector which rose
It saw a total of 7.6 million shares changing 8.8%, followed by retail and wholesale trade
hands. Since the beginning of the year, the which rose 5.1% and 1.2% respectively. “On
stock has fallen by 47.92%. — by Sulhi Khalid a quarter-on-quarter (q-o-q) comparison,
the volume index increased 0.7%, supported

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KUALA LUMPUR (May 12): The High High Court to and the prosecution took 34 days to put their
Court on Thursday (May 12) fixed July 7 deliver verdict on case before her defence was called by Jus-
to deliver its decision on Datin Seri Rosmah Rosmah’s solar tice Zaini.
Mansor’s solar hybrid graft trial. hybrid graft trial
Among the witnesses who testified for the
Justice Mohamed Zaini Mazlan fixed the on July 7 prosecution were former education minister
date following mention of the case. Datuk Seri Mahdzir Khalid, the ministry’s
BY HAFIZ YATIM secretary-generalTan Sri Dr Madinah Mo-
“We have reached the end of the road theedgemarkets.com hamad, her successor Datuk Seri Alias Ah-
with this case and today, it is time to end mad, Rizal, as well as Saidi and his former
the journey to fix a date to give a decision. for you to reply to what Sri Ram had hand- business partner Rayyan Radzwill Abdullah.
ed,” the judge added.
“I propose to deliver it two months from Rizal, an aide in the Prime Minister’s
today and fix July 7 to deliver it,” he said. Rosmah, 70, is charged with soliciting a Office during Najib’s time, emerged as the
RM187.5 million bribe out of the RM1.25 crown witness in the case as he testified
The court had concluded Rosmah’s first billion project for 369 rural schools in Sar- against Rosmah.
trial on Feb 23 after 43 days of hearing where awak, which was awarded to then Jepak Hold-
23 prosecution and two defence witnesses ings Sdn Bhd managing director Saidi Abang He was initially charged with graft along
including Rosmah herself were called. The Samsudin between January and April 2016 with Rosmah, but was acquitted when the
other defence witness was former First Lady through her aide Datuk Rizal Mansor. charges against him were withdrawn on Jan
of Malaysia department director Datuk Seri 8, 2020 before the start of her trial.
Siti Azizah Sheikh Abod. The wife of former prime minister Datuk
Seri Najib Razak also faces two charges of Rizal was slapped with four charges of
Earlier, the prosecution led by senior Dep- receiving a total of RM6.5 million — RM1.5 seeking and receiving bribes for himself and
uty Public Prosecutor (DPP) Datuk Seri Go- million and RM5 million from Saidi between Rosmah amounting to RM5.5 million in-
pal Sri Ram, who appeared with DPPs Ah- Dec 20, 2016 and Sept 7, 2017 — at her volving the project to supply and instal ru-
mad Akram Gharib and PohYinTinn, only official residence in Seri Perdana, Putrajaya ral school solar energy in Sarawak. He was
submitted a Federal Court authority made and also her private residence in Jalan Lang- charged under Section 16(a)(A) of the Ma-
last April 30 for the court’s consideration. gak Duta. laysian Anti-Corruption Commission Act
2009.
While Rosmah’s counsels led by Datuk She was ordered to enter her defence on
Akberdin Abdul Kader tried to impress on Feb 21. Her graft trial began on Feb 6, 2020 Rosmah’s defence team had argued that
Justice Zaini to hear oral submissions, the despite not calling Najib as a defence witness,
judge said his decision will be based on writ- the defence had successfully raised reasonable
ten submissions. doubt and hence she should be acquitted.

“Rest assured, I will read the defence’s On the other hand, the prosecution said
submission to the prosecution’s submission Rosmah’s defence was just a bare denial and
yesterday (Wednesday), and also the reply to that the non-calling of her husband had af-
this authority handed by the prosecution to- fected her defence.
day. I will accommodate two weeks or more

SHAH ALAM (May 12):The High Court Letters sent included ensuring that the UKSB letters were
was told on Thursday (May 12) that Ultra directly to Zahid sent to then home minister Ahmad Zahid.
Kirana Sdn Bhd (UKSB) sent letters relat-
ing to contract extension directly to former to expedite “I prepared [the letters], then I handed
deputy prime minister Datuk Seri Dr Ahmad contract them to Wan Quoris Shah to be passed to
Zahid Hamidi to speed up the process. extension the home minister’s office, but I’m not sure
if he handed them directly or not,” he said.
UKSB director Datuk Fadzil Ahmad process, says
said if the letters were handed to subor- UKSB director Former Home Ministry immigration af-
dinates, the company would have worried fairs division secretary Datuk Shahril Ismail,
that the contract extension process would Bernama who was the 10th prosecution witness, pre-
take a long time. viously told the court thatWan Quoris Shah
ness told the court that the company sent met with Ahmad Zahid at the now Umno
“The contract extension process needed seven letters to Ahmad Zahid between president’s residence in Seri Satria, Putra-
to be presented at the ministry level, but the 2016 and 2017 regarding the foreign visa jaya before a decision to extend the contract
decision was made by the minister (Ahmad system (VLN) to secure support, condi- was made.
Zahid). That’s why we at UKSB acted to tional application and approval.
send the letters to the minister. Fadzil said the company sent a letter dat-
Fadzil also informed the court on ed June 14, 2017 to Ahmad Zahid to change
“We used a top-down approach, so that Thursday that Wan Quoris ShahWan Ab- the contract extension application from six
the process would be implemented imme- dul Ghani, another UKSB director, was years to three years to avoid going through
diately,” he said in response to an addition- the individual responsible for handing the the Public Private Partnership Unit (UKAS).
al question during the main examination company’s letters to Ahmad Zahid.
by Deputy Public Prosecutor Zander Lim “The change in the extension applica-
Wai Keong. “Wan Quoris Shah’s scope of assignments tion was made after realising that a six-year
period would require approval from UKAS
On why UKSB needed to send the let- that would take a long time. So, we made
ters to Ahmad Zahid, who was the home the decision to shorten the extension period
minister at that time, Fadzil replied, “Ap- and not to be subjected to UKAS approval,”
proval to extend the contract was under he explained.
the purview of the minister.” Click here for the full story

On Wednesday, while reading his wit-
ness statement, the 41st prosecution wit-

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Crypto stress is questions about Tether, the biggest sta- More than
feeding the wider blecoin, and the stability of digital assets. US$200 bil
sell-off in global wiped off
Traders in other markets were pay- cryptocurrency
markets ing close attention to the reverberations market in a day
from crypto, and what the downdraft
BY LYNN THOMASSON means for risk sentiment. Asset prices BY LOW DE WEI
& ANCHALEE WORRACHATE also took a hit on Thursday from hot- Bloomberg
ter-than-expected US inflation and a
Bloomberg softer outlook from Walt Disney Co. SINGAPORE (May 12): A massive
sell-off in cryptocurrencies wiped over
LONDON (May 12): Cryptocurrencies “Today there is a new bear factor that US$200 billion of wealth from the
were once touted as a risk hedge. Now has come into play, namely the collapse market in just 24 hours, according to
they look more like a risk spreader. in the cryptocurrencies,” wrote Malcolm estimates from price-tracking website
Freeman, a director at Kingdom Futures. CoinMarketCap.
As markets slumped in unison on
Thursday, traders pointed to the chaos “Investors are getting wiped out in The broad plunge in the crypto
in crypto as a focal point of their con- many cases and the question is: Are those complex, driven by the collapse of
cern. Strategists are increasingly wor- investors also involved in equities? Be- the TerraUSD stablecoin, hit major
ried that small traders, already nursing cause if they run for the exit, then metals tokens hard. Bitcoin plunged by as
losses from the meme stock craze, will will take notice and most likely head in much as 10% in the last day to its low-
be wiped out on their crypto holdings the same direction,” he said. est level since December 2020, while
and sell everything else. Ethereum dropped as much as 16%.
Contagion here is not
“Contagion here is not via linkages via linkages between the The carnage showed signs of
between the crypto ecosystem and the crypto ecosystem and spreading furtherThursday as cryp-
traditional financial system, but via re- the traditional financial to-related stocks in Asia also cratered.
tail investors sentiment,” said Nikolaos Hong Kong-listed fintech firm BC
Panigirtzoglou, global market strategist system, but via retail Technology Group Ltd closed down
at JPMorgan Chase & Co. “If the US$1 investors sentiment.” 6.7%. Japan’s Monex Group Inc —
trillion capital loss in crypto markets which owns theTradeStation and Co-
causes broad-based retrenchment by Bitcoin erased losses in the US morn- incheck marketplaces — ended the
retail investors in other risk assets such ing after dipping close to US$25,000 day down 10%.
as equities, then that’s where the spill- on Thursday. The wider cryptocurren-
over is.” cy sell-off has wiped over US$200 bil- As central banks across the world
lion of wealth from the market in just move to aggressively tighten mone-
Nasdaq futures slid 0.6% and Euro- 24 hours, according to estimates from tary policy to fight inflation, digital to-
pean stocks sank 1.7%, along with other price-tracking website CoinMarketCap. kens have faced selling pressure amid
risk assets like commodities.The classic a broader flight from risk assets. S&P
haven trades, like Treasuries and the yen, “You had Terra at the start of the week 500 futures lost 0.8%Thursday,track-
were bid higher. and now we have Tether getting sucked ing losses in the benchmark MSCI
into it and that’s raising a few eyebrows,” Asia Pacific Index.
The entire crypto space has come said Chris Turner, head of FX strategy at
under extreme pressure this week, with ING Bank NV. “There’s a frisson of un- Investors in the crypto space are no
Bitcoin tumbling below US$30,000 and certainty running through FX markets, stranger to wild swings in the market,
the TerraUSD stablecoin crashing below and that’s why the yen is doing so well.” however, and Bitcoin and Ethereum
its dollar peg. The moves have fuelled pared losses quickly to trade down
4.2% and 9%, respectively, as of
4:45pm Hong Kong time.

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(May 12): US stocks have started exiting Citi urges ber 2020 lows and is down 27% this year.
bubble territory and returns from here caution, sees US Buckland prefers cheaper, so-called val-
will be muted, according to Citigroup Inc. equities exiting
strategists, as risks from monetary tight- ‘bubble territory’ ue stocks, according to a portfolio they’ve
ening and collapse in technology stocks modeled to protect against rising real
mount. BY FARAH ELBAHRAWY yields.They also favor UK and emerging
Bloomberg market stocks over the US and continen-
“With the US exiting bubble territory, tal Europe.
this calls for caution on US equity risk,” the past weeks. As the Federal Reserve em-
strategists including Dirk Willer wrote in barks on interest rate hikes to tame surg- “Any stabilization in nominal yields
a note.They expect “subpar” returns from ing inflation, expensive growth shares have should eventually help to stabilize real
here and recommend favoring cheaper, suffered as higher rates mean a bigger dis- yields and hence equity valuations,” he
so-called value stocks over growth shares. count for the present value of future profits. wrote in a note.
This marks a shift in investor outlook after
The strategists said that the US stock tech stocks had been some of the market’s The Nasdaq 100 index is now trading
market entered bubble territory in October best performers for years. at about 20 times forward earnings, the
2020, and that most of the froth has been lowest since April 2020 and at about the
concentrated in non-profitable American Citi strategists led by Robert Buckland average level seen over the past decade,
technology companies. Other global assets, earlier today also said in a note that growth according to data compiled by Bloomberg.
including US real estate, aren’t triggering stocks, including the battered tech sector, This compares with about 29 times seen
bubble warnings, Citi said. will likely remain under pressure as cen- at a record high in November.
tral banks tighten monetary policy, driving
“When a major equity market bubble yields higher.They are especially wary of Read also:
is deflating, it may undermine most glob- growth stocks in the US, where the tech- Citi strategists see even more losses
al equity markets, not just the one that heavy Nasdaq 100 has slumped to Novem- ahead for growth stocks
is deflating,” Citi strategists said. “This “Growth stocks, including the battered tech
would suggest that a potentially deflating sector, will likely remain under pressure as
US bubble should be a negative for equity central banks tighten monetary policy, driving
risk more broadly.” yields higher”
Click here
Stocks that are valued on future earn-
ings growth, and especially tech, have been
leading the selloff in global equities over

(May 12): In most selloffs, investors can There’s nowhere So far this year the losses have been
find a few safe havens. But in this year’s for investors to universal.
corporate bond rout, a backdrop of stag- hide in this credit
flation means there is absolutely nowhere In another sign of credit-market stress,
to hide. market rout the 90-day rate of change in invest-
ment-grade spreads in Asia hit the high-
From ultra-safe triple A to near-default BY TASOS VOSSOS est since 2020. That’s the second-fastest
triple C notes, US dollar, euro and ster- Bloomberg spread widening in at least a decade, be-
ling company debt has all posted negative hind the pandemic markets’ seize-up of
total returns so far this year, according eign bonds is thin. that year.
to Bloomberg data and Bank of America Junk-rated debt, meanwhile, is less sen-
Corp indexes. To be sure, analysts are still seeking
sitive to changes in government yields and solace in companies with strong balance
Performance in the euro market is par- has wider spreads. sheets. But this is unlikely to prevent fur-
ticularly telling, with all rating categories ther losses, even in areas that investors fled
losing a similar amount — between about This dynamic created a divergence be- to for stability.
6% and 9% — even after a brief rebound tween rating bands in previous years.When
for credit earlier this week. the coronavirus pandemic first roiled mar- “A lot of people are hiding in short-
kets in 2020, safe bonds outperformed er-dated paper at the moment. The big
In previous market downturns, inves- while risky debt tumbled. A year later, risk is if EU inflation doesn’t come down
tors could seek to avoid losses by focusing euro, dollar and sterling junk bonds gained and the ECB has to hike faster,” said Ka-
on higher quality credits or avoiding safer, ground while investment-grade debt fell mil Amin, a credit strategist at UBS AG.
rate-sensitive bonds. Neither option will as government yields rose. “The front end will come under pressure.”
work now, as a combination of rate hikes
spurred by soaring inflation and concern Amin and his colleagues are expecting
about an economic slowdown are affecting further widening in junk bond spreads and
all corporate bonds. volatility in government bond yields.

“Nothing has been spared,” said Rhys Invesco’s Davies, meanwhile, is looking
Davies, a fund manager at Invesco Asset for value in discounted bonds, which will
Management Limited.“Concerns on infla- eventually rise to face value even if they
tion led to an increase in government bond fall further in the secondary market in the
yields and this time around that has start- meantime. And he sees some glimmers of
ed to feed into spreads as well,” he said. hope ahead.

Returns in high-grade bonds are heavily After “such bad returns over that kind
influenced by yield moves in government of time period, it is fair to expect mar-
bonds, as safe company debt is typically kets to pause and reassess,” said Davies.
longer dated and its risk buffer to sover- “I am hopeful at least that’s where we’re
going next.”

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TOKYO (May 12): Japan’s SoftBank SoftBank’sVision is slowing the pace of investment in the
Group Corp reported a record US$26.2 Fund posts current quarter as private prices lag the
billion loss at its Vision Fund investment fall in public markets.
arm on Thursday, as rising interest rates record US$26 bil
and political instability have whiplashed loss as tech stocks While 20 portfolio companies raised
high-growth tech stocks. funds at higher valuations during the
take a beating quarter, SoftBank also marked down
The loss was in stark contrast to a some of its unlisted assets, contribut-
year earlier when SoftBank delivered a BY SAM NUSSEY ing to the record loss, in sectors such as
record annual profit, and it put founder Reuters consumer, fintech and transportation.
and CEO Masayoshi Son’s strategy of
concentrating heavily on riskier, high- Investors are Son, 64, has described SoftBank as
growth stocks under more scrutiny. now increasingly a goose laying golden eggs but the pace
questioning whether of listings has slowed with one notable
Investors are now increasingly ques- many of the once recent exception, Indonesia’s GoTo, slid-
tioning whether many of the once high-flyers it has ing since going public last month.
high-flyers it has invested in have a invested in have
clear path to profitability. South Kore- The group’s annual net loss was 1.7
an e-commerce firm Coupang is trading a clear path to trillion yen (US$13.15 billion). The
70% below its listing price. Ridehail- profitability. Vision Fund unit’s assets, including
ers Didi Global Inc and Grab Holdings the Latin American funds, were worth
also tumbled during the January-March US$175.6 billion at March-end. That
quarter. compared to an acquisition cost of
US$141.6 billion.
Son, at a briefing following the earn-
ings announcement, said SoftBank need- SoftBank also recorded, in its
ed to take a defensive position by im- non-consolidated earnings, a 669.5 bil-
proving its cash position through asset lion yen loss due to its SB Northstar
monetisation and stricter investment trading arm, which had placed bets on
criteria. listed stocks and derivatives.

Vision Fund has around 450 com- To raise cash SoftBank is targeting
panies in its portfolio and made 43 in- a US listing of chip designer Arm fol-
vestments during the fourth quarter. It lowing the collapse of the sale to chip-
maker Nvidia.

COLOMBO (May 12): Sri Lanka appoint- Sri Lanka names er queuing for petrol earlier on Thursday
ed a new prime minister on Thursday, a new PM in bid to after the curfew was lifted.
move President Gotabaya Rajapaksa hopes address growing
will quell weeks of worsening civil unrest in “I don’t have the time to do my job. By
which at least nine people died this week crisis the time I stay in the fuel queue and get
and more than 300 were injured. petrol, curfew will be imposed. I will have
BY ALASDAIR PAL & UDITHA JAYASINGHE to go home without any money.”
Ranil Wickremesinghe, a political vet- Reuters
eran who has been prime minister of As well as dealing with mass protests,
the island nation five times before, faces BLOOMBERG Wickremesinghe must unite a fractured
the daunting task of leading his country parliament to agree on a way out of a cri-
through its worst economic crisis since in- sis that has seen inflation soar and foreign
dependence. reserves dwindle.

Economic mismanagement, the Cov- “He has said from the beginning, par-
id-19 pandemic, and rising energy costs liament needs to come together to provide
following Russia’s invasion of Ukraine have a solution to the crisis,” Dinouk Colom-
drained state coffers, meaning Sri Lanka bage, media secretary fromWickremesin-
is running low on fuel and essential med- ghe’s opposition United National Party,
icines and facing daily power blackouts. told Reuters.

Rajapaksa, whose elder brother Wick- “He is no stranger to dealing with eco-
remesinghe replaced as prime minister, nomic and political challenges, having
has called nationwide curfews and given done so multiple times before.”
security forces sweeping powers to shoot
at anyone involved in looting or putting Ranil Wickremesinghe Read also:
people’s lives at risk. Hong Kong arrests 90-year-old cardinal
in wider crackdown
Mahinda Rajapaksa, who resigned on “Hong Kong’s national security police
Monday, has gone into hiding on a naval detained four prominent democracy
base and the president has warned of the activists onWednesday, including a senior
risk of all-out anarchy. member of the Catholic church, prompting
condemnation from the US and “extreme
Ordinary people have grown increas- attention” from theVatican.”
ingly frustrated at disruptions to normal Click here
life.

“We have hit the bottom economically,”
said Nimal Jayantha, an autorickshaw driv-

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LONDON (May 12): Russia’s oil reve- Russia oil mand rebounds following a spate of new
nues are up 50% this year even as trade re- revenues up 50% Covid-19 lockdowns, it said.
strictions following the invasion of Ukraine this year despite
spurred many refiners to shun its supplies, boycott, says IEA Reduced flows of Russian refined prod-
the International Energy Agency (IEA) said. ucts such as diesel, fuel oil, and naphtha
BY GRANT SMITH have aggravated tightness in global mar-
Moscow earned roughly US$20 billion Bloomberg kets, the agency noted. Stockpiles have
each month in 2022 from combined sales declined for seven consecutive quarters,
of crude and products amounting to about The IEA, which advises major econo- with reserves of so-called middle distillates
eight million barrels a day, the Paris-based mies, kept its outlook for world oil markets at their lowest since 2008.
IEA said in its monthly market report. largely unchanged in the report. Global
fuel markets are tight and may face further But for all the disruptions, Moscow
Russian shipments have continued to strain in the months ahead as Chinese de- has continued to enjoy a financial wind-
flow even as the European Union edges fall compared with the first four months of
towards an import ban, and international BLOOMBERG 2021. Despite the EU’s public censure of
oil majors such as Shell plc andTotalEner- the Kremlin’s aggression, total oil export
gies SE pledge to cease purchases. Asia has revenues were up 50% this year.
remained a keen customer, with China and
India picking up cargoes no longer wanted The bloc remained the largest market
in Europe. for Russian exports in April, taking 43%
of the country’s exports, the IEA said.

Still, there are signs of Russia’s resil-
ience starting to fray.

Supplies were down one million barrels
a day last month, and these losses could
triple in the second half of the year, the
agency estimated. EU sanctions against
Russian state-linked enterprises such as
production giant Rosneft PJSC will take
effect on May 15, and the bloc is mov-
ing towards a full ban on the country’s
supplies.

“If agreed, the new embargoes would
accelerate the reorientation of trade flows
that is already underway and will force
Russian oil companies to shut in more
wells,” the IEA said.

(May 12): Germany said Russia is using its Germany the country winds down nuclear and coal.
energy exports as a “weapon” after Moscow says Russia The fuel is also critical for heating homes
reduced natural gas supplies in retaliation for weaponizes and industrial processes in the chemicals
Europe’s penalties over the war in Ukraine. energy as gas and pharmaceuticals sectors.
feud escalates
A unit of Gazprom PJSC that was seized Moscow prohibited dealings with Gaz-
by Germany has had its deliveries reduced BY IAIN ROGERS prom Germania GmbH and its various
by about 10 million cubic meters a day, ac- Bloomberg subsidiaries now under the control of Ger-
cording to German Economy Minister Rob- many’s energy regulator.That includes ener-
ert Habeck, who is also the vice chancellor gas prices in the region jumped on the re- gy supplierWingas GmbH, a European gas
in the ruling coalition in Berlin. taliation and also on disruptions to a key storage business, the London-based trading
transit route through Ukraine. Russia had arm of Gazprom and EuRoPol Gaz, owner
It appears to be a largely symbolic move already cut supplies to Poland and Bulgaria of the Polish section of the Yamal-Europe
by Moscow as Habeck said the cut amounts amid a dispute over payment terms. pipeline connecting Russia to Germany.
to about 3% of Germany’s Russian gas im-
ports. He said Europe’s biggest economy Germany is the largest buyer of Russian “The situation is that the gas market can
can cope with the disruption in part by se- gas, which accounts for about 35% of the compensate for the loss of gas from Russia,”
curing alternative supplies.There’s no need country’s supplies, down from more than Habeck said.
to elevate Germany’s alert level in its emer- half before the invasion of Ukraine in late
gency plan in response to Moscow’s sanc- February. Germany last month temporarily took
tions against Gazprom Germania GmbH, control of Gazprom Germania. Most of the
he added. The fuel is a crucial part of energy mix group’s companies had come under pressure
of Europe’s largest economy. Some 15% of after clients and business partners refused
Russia’s decision to reduce supplies Germany’s’s electricity is generated from gas to do business with them after Russia’s in-
shows that “the confrontation over energy — compared with less than 9% in 2000, as vasion of Ukraine.That raised the prospect
is a weapon,” Habeck said Thursday in a that owners of key European energy infra-
speech to the Lower House of Parliament. structure wouldn’t survive.
“Energy can be used powerfully in an eco-
nomic conflict.” “We are monitoring the situation close-
ly,” he told lawmakers. “We have prepared
The reduction in supplies to the unit for the situation and I, and the federal net-
marks the latest escalation in Europe’s work agency, will inform you through the
standoff with Russia over energy. Natural course of the day.”

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Renting a home in rental rates. Observers said they expect the Mortgage rates
in Singapore has upward trend to continue as the city-state in US rise to
never been this reopens and work relocations increase, in- 5.3%, highest
cluding from Hong Kong. since July 2009
expensive
Rental prices for private apartments have BY PRASHANT GOPAL
BY ABHISHEK VISHNOI risen for 16 straight months, with a 15% year- Bloomberg
Bloomberg on-year increase in April. Rents for HDB flats
have climbed for 22 months, gaining 14% (May 12): US mortgage rates jumped
(May 12): Rents for Singapore’s private apart- from a year ago in the latest month, the re- again this week, extending a steep climb
ments and Housing Development Board flats ports said. that is shutting some would-be homebuy-
surged to record highs last month, according ers out of the market.
to local media, and expectations are that they A condominium in District 1,which boasts
will keep rising. of being closer to offices in the central busi- The average for a 30-year loan was
ness district as well as many tourist attractions, 5.3%, up from 5.27% last week and the
Condominium rents climbed 2.3% in can now go for a median rent of S$5,100 highest since July 2009, Freddie Mac said
April from a month earlier to surpass their (US$3,670) a month versus S$4,000 a month in a statementThursday.
previous peak reached in January 2013, while a year ago, according to the data by 99.co
those for HDB flats increased 1.9% to exceed and SRX compiled by the BusinessTimes. Rates tracked yields for 10-yearTreas-
the record set in August 2013, the Business uries, which last week reached 3% for the
Times reported, citing data released by real The area saw one of the biggest jumps in first time since 2018. US consumer prices
estate portals 99.co and SRX Property. prices over the period, though rents in District rose more than forecast in April, signaling
25 near to the Causeway bridge connecting the Federal Reserve will need to be aggres-
Demand for more space during the pan- Singapore to Malaysia experienced the largest sive in its efforts to contain inflation. As
demic coupled with tight supply of houses increase. In that district, which comprises the the Fed raises benchmark interest rates,
due to construction delays has led to a surge northern Kranji andWoodlands areas,median mortgage costs are expected to follow.
condominium rents have risen almost 44%
over the year to reach S$3,450 last month, In what’s traditionally the housing mar-
the data show. ket’s busiest and most competitive sea-
son, higher rates will put more pressure
Rent is projected to continue to increase on buyers to seal deals before loans get
given that leasing demand is supported by even more expensive. Others are delaying
both local residents and newly arrived foreign- home searches after calculating that they
ers, said Nicholas Mak, the Singapore-based can’t afford bigger mortgage bills.
head of research at APAC Realty Ltd unit
ERA. At the current 30-year average, a bor-
rower with a US$300,000 mortgage
As Singapore opens its border with the rest would pay US$1,666 a month, US$384
of the world, more foreign workers, students more than at the end of last year.
and their families will move to work, study
and live in Singapore,” Mak said. “Some of The many cash buyers in the market,
these foreigners will also include Malaysians including downsizers and property inves-
who have been waiting for the opportunity to tors, aren’t rate sensitive, so they’ll contin-
work in Singapore to take advantage of the ue to make purchases even as first-time
stronger Singapore dollar.” buyers pull back, said Greg McBride, chief
financial analyst at Bankrate.com.
MUMBAI (May 12): India's headline infla- India CPI hits
tion accelerated for a seventh month to the eight-year high, “The run up of mortgage rates since
fastest since May 2014, further challenging beginning of the year has the same impact
the central bank's efforts to contain surging testing RBI on affordability as an increase in home
prices and sustain an economic recovery. efforts to cap prices of more than 20%,” McBride said.
“It will certainly temper demand as many
Consumer prices increased 7.79% in prices would-be homebuyers are priced out. But
April, the Central Statistics Office said in a rising rates won’t turn this into a buyer’s
statement onThursday.That compares with BY ANUP ROY market as long as inventory remains as
a 7.42% gain predicted in a Bloomberg sur- Bloomberg low as it is.”
vey of economists and 6.95% in the previ-
ous month. rates by 75 to 100 basis points over the course Adjustable-rate mortgages are becom-
of the fiscal year, said Gaurav Kapur, chief ing more popular as a cheaper option. Last
Inflation has been running ahead of the economist at IndusInd Bank Ltd in Mum- week,ARMs — with variable interest rates
Reserve Bank of India's (RBI) 2%-6% tar- bai. Inflation will likely stay above 6% until that reset based on the market at prede-
get range for four straight months, helping September, he added. termined times — accounted for the big-
trigger a surprise rate hike last week. Gov- gest share of home-loan applications since
ernor Shaktikanta Das has since last month According toThursday's release, consum- 2008, data from the Mortgage Bankers
stressed the need to prioritise taming price er food prices rose almost 8.4% while fuel Association show.
gains over supporting growth. gained about 11%.
The current average for five-year
The stage is set for a likely further rate hike ARMs is 3.98%, Freddie Mac said, up
at the RBI's next meeting in June, when it is from 3.96% last week.
expected to revise up its 5.7% inflation fore-
cast for the current April-March fiscal year.

High inflation may force the RBI to raise

F R I D A Y M A Y 1 3 , 2 0 2 2 20 T H E E D G E C E O M O R N I N G B R I E F

WORLD

OPEC cuts LONDON (May 12): A windfall tax on BP CEO says
2022 world energy companies would not change BP’s longer term
oil demand £18 billion (US$22 billion) investment investment
forecast again plans in Britain to 2030, although fiscal depends on fiscal
on Ukraine war instability would be disruptive in the longer
term, chief executive officer (CEO) Ber- stability
BY ALEX LAWLER nard Looney said on Thursday.
Reuters BY SHADIA NASRALLA & RON BOUSSO
Britain’s Conservative government has Reuters
LONDON (May 12): OPEC on rejected calls by the opposition Labour
Thursday cut its forecast for growth Party to levy a windfall tax on energy com- ment in home-grown energy... We would
in world oil demand in 2022 for a sec- panies that have benefitted from high oil love to invest even more — and one of the
ond straight month, citing the impact and gas prices, saying such a tax would key foundations of any such decisions will
of Russia’s invasion of Ukraine, rising deter investment. be a stable fiscal environment.”
inflation and the resurgence of the
Omicron coronavirus variant in China. “Our £18 billion plans are not some-
how contingent on whether or not there is
In a monthly report, the Organ- a windfall tax,” Looney said at an annual
ization of the Petroleum Exporting shareholder meeting.
Countries (OPEC) said world demand
would rise by 3.36 million barrels per “By definition, windfall taxes are unpre-
day (bpd) in 2022, down 310,000 bpd dictable — and so would challenge invest-
from its previous forecast.
Saudi Aramco than Aramco’s. Since then, however,Apple has
The Ukraine war sent oil prices becomes world’s fallen nearly 20% while Aramco is up 28%.
briefly above US$139 a barrel in March,
the highest since 2008, worsening infla- most valuable Apple representatives didn’t respond to a
tionary pressures. OPEC has cited sug- stock as Apple request for comment.
gestions that China, with strict Covid
lockdowns, is facing its biggest demand drops With the Fed on pace to further raise rates
shock since 2020 when oil use plunged. by at least another 150 basis points this year
BY RYAN VLASTELICA & MATT TURNER and with no prospects yet of a resolution for
“Demand in 2022 is expected to be Bloomberg the conflict in Ukraine, it may be a while
impacted by ongoing geopolitical de- until tech regains dominance, according to
velopments in Eastern Europe, as well (May 12):SaudiAramco overtookApple Inc.as Tim Ghriskey, senior portfolio strategist at
as Covid-19 pandemic restrictions,” the world’s most valuable company, stoked by a Ingalls & Snyder.
OPEC said in the report. surge in oil prices that is buoying the crude pro-
ducer while adding to an inflation surge throt- “There’s panic selling in a lot of tech and
Nonetheless, OPEC still expects tling demand for technology stocks. other high-multiple names, and the money
world consumption to surpass the 100 coming out of there seems headed in particular
million bpd mark in the third quarter, Aramco traded near its highest level on re- for energy, which for now has a favorable out-
and for the 2022 annual average to just cord on Wednesday, with a market capitaliza- look, given commodity prices,” he said.“Com-
exceed the pre-pandemic 2019 rate. tion of about US$2.43 trillion, surpassing that panies like Aramco are benefitting significantly
of Apple for the first time since 2020.The iP- from this environment.”
OPEC and its allies which include hone maker fell 5.2% to close at US$146.50 per
Russia, known as OPEC+, are unwind- share, giving it a valuation of US$2.37 trillion. Tech weakness
ing record output cuts put in place dur- The year’s weakness in technology shares has
ing the worst of the pandemic in 2020 Even if the move proves short-lived and Ap- come amid concerns over inflation and a more
and have rebuffedWestern pressure to ple retakes the top spot again, the role reversal aggressive Fed. Apple’s recent results also un-
raise output at a faster pace. underscores the power of major forces coursing derlined the difficulties it is facing from supply
through the global economy. constraints.The stock is still seen as a relative
At its last meeting, OPEC+ swerved safety play within the sector, given its steady
the Ukraine crisis and stuck to a previ- Soaring oil prices, while great for profits at growth and balance-sheet strength -- factors
ously agreed plan to boost its monthly Aramco, are exacerbating rising inflation that that have limited its decline this year.The stock’s
output target by 432,000 bpd in June. is forcing the Federal Reserve to raise interest year-to-date drop is smaller than the 24.8% de-
rates at the fastest pace in decades.The higher cline of the Nasdaq 100 Index.
OPEC+ has been undershooting the rates go, the more investors discount the value
increases due to underinvestment in oil- of future revenue flows from tech companies Apple remains the largest stock among U.S.
fields in some OPEC members and, and push down their stock prices. companies. Microsoft Corp., in second place,
more recently, losses in Russian output. has a market capitalization of US$1.95 trillion.
“You can’t compare Apple to Saudi Aramco
The report showed OPEC output in terms of their businesses or fundamentals, Meanwhile, the S&P 500 Energy sector has
in April rose by 153,000 bpd to 28.65 but the outlook for the commodity space has soared 40% this year, supported by a rally in
million bpd, lagging the 254,000 bpd improved.They’re the beneficiaries of inflation the price of Brent crude oil which has gone
rise that OPEC is allowed under the and tight supply,” said James Meyer, chief in- from about US$78 a barrel at the start of the
OPEC+ deal. vestment officer atTower Bridge Advisors. year to US$108. Occidental Petroleum Corp.
is the top performing stock in the S&P 500 this
Earlier this year,Apple boasted a market val- year, with a 107% advance.
ue of US$3 trillion, about US$1 trillion more
“In a bear market, buyers aren’t enticed by
fair value, they want cheap values, and I think
buyers will remain on strike until we see more
pain and prices look even more attractive,” said
Meyer atTower Bridge.

F R I D A Y M A Y 1 3 , 2 0 2 2 21 T H E E D G E C E O M O R N I N G B R I E F

WORLD

India seeks to of Karnataka put that decision on hold Dubai Airport
restore block on after Xiaomi challenged it, saying all the sees busiest
US$725 mil of royalty payments were legitimate.
Xiaomi’s bank quarter in two
The hold decision would continue for years as travel
assets now, a judge of the same court said on
Thursday, adding that the agency would gains pace
BY ABHIRUP ROY & ADITYA KALRA make a formal request later in the day to
Reuters restore the freeze. BY ALEXANDER CORNWELL
Reuters
MUMBAI (May 12): In- “The matter requires further hearing,”
dia’s financial crime fight- added the judge, Siddappa Sunil DuttYa- DUBAI (May 12): Dubai’s main air-
ing agency asked a court dav, who set the next hearing for May 23. port on Thursday reported its busiest
on Thursday to reinstate quarter in two years as the rebound in
a freeze on US$725 mil- A spokesperson for Xiaomi did not international travel gains pace, with its
lion in the Indian bank ac- immediately respond to a request for chief executive officer (CEO) predicting
counts of Xiaomi Corp as comment. Dubai International could see pre-Cov-
it investigates fund trans- id-19 figures by the end of 2024.
fers by the Chinese smart- Xiaomi’s lawyers told
phone giant. the court that banks were The Gulf hub, one of the world’s
not allowing the compa- leading gateways for international trav-
The enforcement directorate had seized ny to make necessary pay- el, handled 13.6 million passengers in
the money saying Xiaomi had illegally ments, even though the the January-March period, more than
transferred funds abroad to three enti- court had allowed it to use double the 5.7 million in the same pe-
ties, including one in the Xiaomi group, funds for purposes other riod last year.
describing them as payments “in the guise than royalty payments.
of royalty”. It was the best performance since
OnThursday, the judge 17.8 million passengers in the first quar-
But the high court in the southern state allowed Xiaomi to use a ter of 2020, before the pandemic shut
bank overdraft facility for most international borders and forced
such payments. airlines to halt flights.
The agency’s move comes after Xiaomi
said in a court filing that its top executives The state-owned operator now expects
faced threats of “physical violence” and co- 58.3 million passengers will pass through
ercion during questioning by enforcement the airport this year, compared with an
officials, contentions that the agency has initial forecast of about 56 million.
dismissed as untrue.
“It does signal that we can be more
ZURICH (May 12): Siemens will quit the Siemens to leave optimistic about the future and hope
Russian market due to the war in Ukraine, Russia due to to regain pre-Covid-19 levels maybe as
it said on Thursday, taking a €600 million Ukraine war, early as 2024,” CEO Paul Griffiths told
(US$630 million) hit to its business during Reuters in Dubai.
the second quarter, with more costs to come. take hefty charge
The recovery at the airport, the hub
The German industrial and technolo- BY JOHN REVILL of airline Emirates, continues to be driv-
gy group became the latest multinational Reuters en by point-to-point traffic, which Grif-
to announce losses linked to its decision fiths said currently accounts for about
to leave Russia following the Feb 24 inva- train-making mobility business subsequent 70% of all passengers.
sion, which Moscow called a “special mil- to sanctions on Russia, Siemens said.
itary operation”. Before the pandemic, the airport,
The Munich company employs 3,000 which only handles international flights,
Several companies, from brewers An- people in Russia, where it has been active for had an even passenger traffic split with
heuser-Busch InBev and Carlsberg to 170 years. It first went to Russia in 1851 to those who transit through to board
sportswear maker Adidas, carmaker Re- deliver devices for the telegraph line between flights to other destinations.
nault, and several banks have been count- Moscow and St Petersburg. The country
ing the cost of suspending operations in or now contributes to about 1% of Siemens’ Griffiths said it was possible point-
withdrawing from Russia. annual revenue, with most of the present-day to-point would remain the larger con-
business concerned with maintenance and tributor to passenger traffic flows until
Siemens chief executive Roland Busch service work on high-speed trains. markets in Asia, such as China, lift Cov-
described the conflict as a “turning point id-19 restrictions.
in history”. The costs weighed on Siemens’ sec-
ond-quarter earnings, with net income “We have to be a little bit cautious
“We, as a company, have clearly and halved to €1.21 billion (US$1.27 billion), about the rate of recovery particularly
strongly condemned this war,” Busch told missing analysts’ forecasts of €1.73 billion. for the transit market but overall we are
reporters. pretty bullish.”
Click here for the full story
“We’re all moved by the war as human Griffiths also said passengers could
beings. And financial figures must take a soon start seeing more expensive air
back seat in the face of the tragedy. Never- fares due to high oil prices and infla-
theless, like many other companies, we’re tion, though doubted that would dent
feeling the impact on our business.” demand built up during the pandemic.

During the second quarter, Siemens
incurred €600 million in impairment
and other charges mostly recorded in its

F R I D A Y M A Y 1 3 , 2 0 2 2 22 T H E E D G E C E O M O R N I N G B R I E F

WORLD

China’s white knight tycoon can’t save
his own firm from default

SINGAPORE (May 12): Sun Hongbin, BY DAVID SCANLAN Tan, an analyst at Morningstar Inc. “He’s
dubbed the “white knight” in China for Bloomberg always been relying on a strategy of ag-
bailing out fellow billionaires and their em- gressive expansion funded by leverage.”
pires, was unable to rescue his own from Though he dipped
the property crisis that’s engulfing the into his own pocket As the liquidity crunch deepened last
world’s second-biggest economy. year following Beijing’s crackdown, Sun
to the tune of took steps to bolster Sunac’s balance sheet,
Though he dipped into his own pocket to US$450 million, it determined to avoid a repeat of a failed
the tune of US$450 million, tapped investors wasn’t enough for property firm known as Sunco that he ran
to buy shares and raised more than US$2 bil- Sun to avoid default more than 15 years ago.
lion in all, it wasn’t enough for Sun to avoid
default at his Sunac China Holdings Ltd. at his company. Sun, a US citizen, dipped into his own
coffers to provide a US$450 million inter-
Sunac joins more than a dozen devel- before slipping to fourth.That growth made est-free loan to Sunac, which also raised
opers including China Evergrande Group Sunac a stock darling for a time, gaining US$580 million in a January stock sale and
that have defaulted on dollar bonds in the more than 400% in 2017 alone. unloaded a stake in its property-services unit.
past few months, potentially inflicting more
pain on global high-yield investors. That lofty perch made Sun popular Bonds tumble
among tycoons in need. None of it was enough to avoid default for a
The struggles at Sunac — China’s No. company saddled with almost US$11 billion
4 developer by sales — may herald further When China’sTesla Inc-wannabe LeE- in domestic and offshore bonds. Sunac is now
distress among property firms that were co had cash-flow problems, Sun offered the biggest developer to default on a public
deemed too strong to fail just a few months a lifeline of US$2.5 billion to founder Jia bond payment this year, as Sun joins fellow
ago.They also underscore how developers Yueting’s operations. In 2017, Sun agreed billionaire Hui KaYan at Evergrande in fail-
are straining under Beijing’s crackdown on to buy hotels and theme parks from Dalian ing to keep up with massive debt payments.
borrowing and a housing slump that’s being Wanda Group Co for more than US$6 bil-
made worse by strict Covid restrictions. lion after China planned to cut off funding “The group’s contracted sales have con-
for billionaireWang Jianlin. Sun also came tinued to decline significantly, while access to
“Sunac’s default means that no private close to buying Kaisa Group Holdings Ltd new financing has become increasingly dif-
Chinese developer is now safe from default when the troubled developer defaulted on ficult,” Sunac said in a statementThursday.
this year” without new financing, said Wei offshore debt. He later dropped the deal.
Chong, head of bond research at Fuhui Juli Sunac is trying to find state-backed stra-
Wealth Management Corp, a hedge fund that Yet Sunac’s massive spending spree and tegic investors to improve the company’s
owned Sunac’s onshore debt before selling expansion into sectors ranging from indoor credit status and restore financing capa-
earlier this year. ski hills to amusement parks has been rais- bilities, Hong Kong Economic Times re-
ing eyebrows for years. The investments ported, citing unidentified people.
Sunac declined to comment. in businesses unrelated to property, which
For Chairman Sun, 58, the default is included a struggling internet company, Sun’s personal fortune meanwhile, has
another setback in a roller-coaster career prompted Fitch Ratings to cut the firm tumbled along with Sunac’s share price,
that’s included a separate failed property deeper into junk status in 2017, citing what which was off 61% this year before it was
firm, a stint in prison over embezzlement it called its “acquisitive business approach”. suspended from trading in March after the
charges for which he was later exonerated, company failed to release earnings.
and a meteoric rise to found one of the “He’s quite gung-ho,” said ChengWee
country’s biggest developers. He amassed His net worth has slipped to US$1.3
a US$12 billion fortune along the way. Sun Hongbin billion, a decline of US$2 billion in 2022
Just a few months ago, Sun’s company alone, according to the Bloomberg Billion-
was projected to be one of the survivors of aires Index.
China’s moves to reduce risk in the financial
sector by limiting developers’ ability to bor- BLOOMBERG
row in public markets. Sunac, with Harvard
University-educated Sun as its biggest share-
holder, was rated BB as recently as March
last year at S&P Global Ratings, two notches
below investment grade.The dollar bonds
that slipped into default traded at 82 cents
on the dollar in December.
Sunac’s sales blossomed to about 230 bil-
lion yuan (US$34 billion) in 2020, a 10-fold
jump from 2015 as it benefited from surging
demand in its top-tier markets of Shanghai
and Beijing.The firm ranked third by con-
tracted sales last year, according to China
Real Estate Information Corp, a position it
maintained in the first two months of 2022

F R I D A Y M A Y 1 3 , 2 0 2 2 23 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 6,368.00-108.00 OIL US$ 106.14-1.37 RM/USD 4.393 RM/SGD 3.147 RM/AUD 3.0187 RM/GBP 5.3496 RM/EUR 4.5835

Top 20 active stocks

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

SERBA DINAMIK HOLDINGS BHD 352.30 0.025 0.085 -75.71 315.3

MNC WIRELESS BHD 328.20 -0.005 0.020 33.33 45.7

TECHNA-X BHD 188.60 0.000 0.115 53.33 254.3

DAGANG NEXCHANGE BHD 70.20 -0.080 0.930 22.37 2,935.3

CSH ALLIANCE BHD 68.80 -0.015 0.110 15.79 152.0

MY EG SERVICES BHD 61.40 -0.020 0.865 -19.16 6,388.5

BINA PURI HOLDINGS BHD 57.40 0.010 0.070 55.56 111.8

PUC BHD 49.50 0.000 0.050 -65.52 81.3

BERJAYA CORP BHD 49.30 0.000 0.245 -2.00 1,357.8 World equity indices

BUMI ARMADA BHD 43.90 -0.020 0.385 -18.09 2,275.5

WIDAD GROUP BHD 43.70 0.000 0.360 -1.37 990.9 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

HIBISCUS PETROLEUM BHD 42.80 -0.040 1.310 60.74 2,636.3 (%) (%)
DOW JONES 31,834.11 -326.63 -1.02 INDONESIA 6,599.84 -216.36 -3.17
AHB HOLDINGS BHD 30.60 -0.005 0.210 61.54 78.7

TOP GLOVE CORP BHD 28.00 -0.040 1.490 -42.47 3.1 S&P 500 3,935.18 -65.87 -1.65 JAPAN 25,748.72 -464.92 -1.77

SOUTH MALAYSIA INDUSTRIES 24.70 0.010 0.375 87.50 78.7 NASDAQ 100 11,967.56 -378.30 -3.06 KOREA 2,550.08 -42.19 -1.63

XOX BHD 22.2 0 0.015 -50 75.5 FTSE 100 7,164.81 -182.85 -2.49 PHILIPPINES 6,532.30 -103.56 -1.56

INARI AMERTRON BHD 22.1 -0.13 2.51 -37.25 9303.4 AUSTRALIA 6,941.03 -123.65 -1.75 SINGAPORE 3,165.18 -60.89 -1.89

SEDANIA INNOVATOR BHD 20.6 0.01 0.425 -17.48 147.6 CHINA 3,054.99 -3.71 -0.12 TAIWAN 15,616.68 -389.57 -2.43

MN HOLDINGS BHD 19.9 0.01 0.205 0 83.8 HONG KONG 19,380.34 -444.23 -2.24 THAILAND 1,584.52 -28.82 -1.79

HEXTAR INDUSTRIES BHD 19.5 -0.04 0.34 112.5 390.1 INDIA 52,885.64 -1,202.75 -2.22 VIETNAM 1,238.84 -62.69 -4.82

Data as compiled on May 12, 2022 Source: Bloomberg Data as compiled on May 12, 2022 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)

METRONIC GLOBAL BHD 0.015 50.00 4660.1 -25.00 32.5 EQUITIESTRACKER HOLDINGS BHD 0.100 -37.50 100.0 0.00 24.6

EA HOLDINGS BHD 0.015 50.00 939.1 -25.00 96.8 FINTEC GLOBAL BHD 0.010 -33.33 2,647.0 0.00 59.2

SERBA DINAMIK HOLDINGS BHD 0.085 41.67 352320.2 -75.71 315.3 SCOMI ENERGY SERVICES BHD 0.025 -28.57 39.4 -54.55 11.7

JERASIA CAPITAL BHD 0.040 33.33 2122.0 -75.00 3.3 GREEN OCEAN CORP BHD 0.015 -25.00 123.2 -50.00 31.7

EDUSPEC HOLDINGS BHD 0.025 25.00 3351.5 66.67 76.2 MNC WIRELESS BHD 0.020 -20.00 328,245.1 33.33 45.7

TOP BUILDERS CAPITAL BHD 0.025 25.00 504.4 -28.57 17.6 ALAM MARITIM RESOURCES BHD 0.025 -16.67 2,104.4 0.00 38.3

TALAM TRANSFORM BHD 0.025 25.00 91.0 25.00 107.4 TANCO HOLDINGS BHD 0.265 -14.52 18,547.0 10.42 460.9

XIDELANG HOLDINGS LTD 0.030 20.00 177.0 -14.29 63.5 BCM ALLIANCE BHD 0.030 -14.29 4,218.9 0.00 61.0

IMPIANA HOTELS BHD 0.035 16.67 460.5 -53.33 50.6 CENSOF HOLDINGS BHD 0.245 -14.04 1,868.7 -22.22 135.3

BINA PURI HOLDINGS BHD 0.070 16.67 57415.8 55.56 111.8 HONG SENG CONSOLIDATED BHD 1.850 -13.55 2,544.4 -31.23 4725.3

BERJAYA LAND BHD 0.235 14.63 7706.0 4.44 1156.3 CSH ALLIANCE BHD 0.110 -12.00 68,839.6 15.79 152.0

SAPURA ENERGY BHD 0.040 14.29 14889.7 -20.00 639.2 PERMAJU INDUSTRIES BHD 0.075 -11.76 11,265.2 25.00 144.8

TOYO VENTURES HOLDINGS BHD 0.750 11.94 7559.3 -46.81 80.3 SUBUR TIASA HOLDINGS BHD 1.830 -11.17 876.0 74.29 344.6

KEY ASIC BHD 0.055 10.00 260.9 -21.43 75.0 PDZ HOLDINGS BHD 0.040 -11.11 207.4 -11.11 23.3

ECOFIRST CONSOLIDATED BHD 0.445 9.88 7313.4 15.58 517.9 EA TECHNIQUE M BHD 0.040 -11.11 225.0 -50.00 21.2

BERJAYA FOOD BHD 4.050 9.46 1148.6 88.37 1460.2 ECO WORLD DEVELOPMENT 0.800 -11.11 9,097.8 -5.33 2355.5

MALAYAN UNITED INDUSTRIES BHD 0.060 9.09 9600.0 -14.29 186.5 GREEN PACKET BHD 0.085 -10.53 3,035.0 6.25 135.6

LIEN HOE CORP BHD 0.380 8.57 1.0 4.11 126.3 HEXTAR INDUSTRIES BHD 0.340 -10.53 19,470.1 112.50 390.1

NYLEX MALAYSIA BHD 0.285 7.55 17375.1 -80.21 51.1 AVILLION BHD 0.085 -10.53 12,719.8 -19.05 96.3

OLYMPIA INDUSTRIES BHD 0.075 7.14 146.1 -11.76 76.8 LANDMARKS BHD 0.230 -9.80 845.4 -20.69 154.4

Data as compiled on May 12, 2022 Source: Bloomberg Data as compiled on May 12, 2022 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)

HEINEKEN MALAYSIA BHD 24.00 0.680 839.3 15.16 7250.4 NESTLE MALAYSIA BHD 132.000 -0.700 48.7 -1.64 30954.0

BERJAYA FOOD BHD 4.05 0.350 1148.6 88.37 1460.2 PETRONAS DAGANGAN BHD 20.600 -0.640 446.6 0.00 20465.2

CARLSBERG BREWERY MALAYSIA 22.02 0.220 168 9.66 6732.6 KUALA LUMPUR KEPONG BHD 26.380 -0.520 1445.6 21.12 28441.8

YNH PROPERTY BHD 3.37 0.200 77.4 27.17 1781.0 RAPID SYNERGY BHD 11.500 -0.480 30.9 15.58 1229.3

SHANGRI-LA HOTELS MALAYSIA BHD 3.45 0.110 459.6 3.92 1518.0 GENTING PLANTATIONS BHD 8.050 -0.430 376.9 22.12 7222.4

HONG LEONG BANK BHD 20.64 0.100 1399.8 10.85 44741.7 MALAYSIAN PACIFIC INDUSTRIES 29.300 -0.400 474.0 -40.64 5827.7

TOYO VENTURES HOLDINGS BHD 0.75 0.080 7559.3 -46.81 80.3 FRASER & NEAVE HOLDINGS BHD 21.800 -0.400 142.1 -11.88 7995.8

ALLIANZ MALAYSIA BHD 12.64 0.060 4.9 -1.71 2249.4 SARAWAK OIL PALMS BHD 5.830 -0.370 1514.0 67.05 3383.4

CI HOLDINGS BHD 2.90 0.060 13.3 1.75 469.8 TA ANN HOLDINGS BHD 5.510 -0.320 2342.1 56.98 2426.9

ATLAN HOLDINGS BHD 2.85 0.050 2.5 4.78 722.9 PMB TECHNOLOGY BHD 3.150 -0.300 1496.0 28.26 3692.6

QUALITY CONCRETE HOLDINGS BHD 1.29 0.050 6.2 -3.73 74.8 HONG SENG CONSOLIDATED BHD 1.850 -0.290 2544.4 -31.23 4725.3

SCIENTEX PACKAGING AYER KEROH 2.35 0.050 10.0 -2.08 769.3 PANASONIC MANUFACTURING 28.120 -0.280 6.5 -2.70 1708.2

K SENG SENG CORP BHD 0.80 0.050 393 6.67 92.2 AEON CREDIT SERVICE M BHD 15.200 -0.280 143.1 11.60 3880.7

NEW HOONG FATT HOLDINGS BHD 2.25 0.040 1 -0.44 186.0 PRESS METAL ALUMINIUM 4.800 -0.270 13645.4 -16.96 39550.2

BRITISH AMERICAN TOBACCO 12.82 0.040 105.6 -8.30 3660.5 MALAYSIA AIRPORTS HOLDINGS 6.520 -0.240 3969.2 9.03 10817.9

ECOFIRST CONSOLIDATED BHD 0.45 0.040 7313.4 15.58 517.9 SUBUR TIASA HOLDINGS BHD 1.830 -0.230 876.0 74.29 344.6

IHH HEALTHCARE BHD 6.45 0.030 2815.0 -12.13 56777.4 VITROX CORP BHD 7.000 -0.210 479.1 -29.72 6612.4

LIEN HOE CORP BHD 0.38 0.030 1.0 4.11 126.3 BATU KAWAN BHD 27.700 -0.200 8.5 22.03 10906.5

BERJAYA LAND BHD 0.24 0.030 7706 4.44 1156.3 GREATECH TECHNOLOGY BHD 3.380 -0.200 2596.2 -49.78 4232.2

KPS CONSORTIUM BHD 0.63 0.030 5 17.76 93.1 DUTCH LADY MILK INDUSTRIES BHD 33.5 -0.200 3.9 -0.06 2144

Data as compiled on May 12, 2022 Source: Bloomberg Data as compiled on May 12, 2022 Source: Bloomberg