The Edge 040821

HARTALEGA’S 1Q NET PROFIT BREAKS NEW RECORD AT RM2.26B,
UP 102% Q-O-Q DESPITE LOWER AVERAGE SELLING PRICE p5

WEDNESDAY, AUGUST 4, 2021 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 227/2021

CEOMorningBrief
HOME: Let’s set our differences aside to nurture Malaysia back to health p6
Lam Research launches manufacturing plant in Penang with RM1b investment p7

DBS ranks Malaysian ringgit as cheapest currency in region p8
Is parliamentary democracy dead? A rejoinder legal opinion p13
WORLD: Global banks’ US$170b haul marks most profitable year ever p16

Zahid: Enough Umno MPs have inked declaration
letter to show Muhyiddin has lost majority support

Report on Page 3.

Infineon takes revenue hit
from Malaysia shutdown,

production outages compound
automotive chip supply crunch

Report on Page 4.

Wednesday august 4, 2021 2 TheEdge CEO morning brief

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KUALA LUMPUR (Aug 3): Malaysia’s Daily Covid-19 Daily Covid-19 figures:
new Covid-19 cases climbed above the cases climb to
17,000-mark again to reach 17,105 onTues- 17,000-mark on As at Aug 2, 2021:
day, up 8.51% from 15,764 reported the day Aug 3, pushing
before, according to Health director-general actives to 203,664 Vaccine doses administered 468,526
Tan Sri Dr Noor Hisham Abdullah.
% of population fully vaccinated 22.0
Following a surge in today’s new cases,
active cases increased further to 203,664 % of population with at least 44.3
— the first time of breaching the 200,000- one dose
mark — as daily infections continued out-
pacing recoveries for 39 straight days. As at Aug 3, 2021:

Meanwhile, 195 Covid-19-related Number of new cases 17,105
deaths were reported today, bringing to-
tal fatalities to 9,598. Number of individuals tested 144,857

Of the latest fatalities, 88 deaths were by syafiqah salim & sulhi khalid Positivity rate (%) 11.81
reported in Selangor, 24 in Johor, 15 in theedgemarkets.com
Penang, 13 in Kedah, 12 in Sabah, eight Category 1 8,268 (90.5%
each in Negeri Sembilan, Melaka and Pa- Active cases reach a new record [no symptoms]
hang, seven in Terengganu, four in Perak, high on August 3 unvaccinated)
three in Kelantan, two in Sarawak, one Category 2
each in Kuala Lumpur, Labuan and Perlis. 250000 Total number 203,664 [mild symptoms] 8,520 (73.5%
200000 of active cases
Daily recoveries, on the other hand, came Category 3 unvaccinated)
in lower than new infections at 12,297.To 150000 [with pneumonia]
date, 950,029 have been declared cured 135 (64.4%
from the virus, versus cumulative confirmed 100000 Category 4
Covid-19 infections at 1.16 million. [with pneumonia, requiring unvaccinated)
50000 oxygen therapy]
According to Dr Noor Hisham’s state- 23,433 85 (78.8%
ment, 1,066 Covid-19 patients were ward- Category 5
ed in intensive care units, including 537 0 Jan 1, 2021 [critical & requiring assisted unvaccinated)
of them that require breathing assistance. ventilation]
97 (91.8%
A total of 144,857 tests were carried out
on Tuesday — indicating a positivity rate of unvaccinated)
11.81% — up from 105,785 reported on
Monday. Aug 3, 2021 Number of patients in ICU 1,066

Worst hit state Selangor sees Sources: Ministry of Health, ICU capacity utilisation (%) 76.8
Covid-19 cases fall to 5,836 — lowest CPRC Kebangsaan
in 13 days Number of deaths 195
Selangor again topped the list with 5,836
infections — the lowest number of infec- Sarawak (494),Terengganu (429), Putra- Updated as at 6.30pm, Aug 3, 2021
tions recorded in 13 days — down 3.81% jaya (72), Perlis (seven) and Labuan (five). Sources: CITF, MoH
from 6,067 recorded on Monday
In terms of cumulative Covid-19 in- with pneumonia); 64.4% unvaccinated
Kuala Lumpur came in second, re- fections, Selangor led the country with • 85 cases from Category 4 (pneumonia
porting 2,309 new cases, up from 1,536 425,648 cases, followed by Kuala Lum-
a day ago. pur (128,958) and Johor (94,225). requiring oxygen therapy); 78.8% unvac-
cinated
Other states that recorded more than Only 1.9% Covid-19 cases deemed • 97 cases from Category 5 (critical cases
1,000 infections today were Johor (1,275), serious requiring assisted ventilation); 91.8%
Kedah (1,036) and Sabah (1,010). According to Dr Noor Hisham, 16,788 or unvaccinated
98.1% of the latest Covid-19 cases were
These were followed by Perak (967), in Categories 1 and 2, while 317 cases or R0 declines to 1.07 on Aug 2
Kelantan (915), Negeri Sembilan (816), 1.9% were in Categories 3, 4 and 5. Dr Noor Hisham said the country’s basic re-
Penang (798), Pahang (628), Melaka (508), production number (R-naught or R0) for Cov-
The breakdown of categories and un- id-19 infections nationwide declined to 1.07
vaccinated persons is as follows: yesterday (Aug 2) from 1.08 the day before,
• 8,268 cases from Category 1 (no symp- withTerengganu having the highest R0 at 1.30.

toms); 90.5% unvaccinated Kelantan came in second at 1.25, fol-
• 8,520 cases from Category 2 (mild lowed by Perak at 1.20, Sabah at 1.19, and
Kedah at 1.18.
symptoms); 73.5% unvaccinated
• 135 cases from Category 3 (patients continues on Page 3

WEDNESDAY AUGUST 4, 2021 3 THEEDGE CEO MORNING BRIEF

HOME

FROM PAGE 2 Zahid: Enough
Umno MPs have
The R0 projects the average number inked declaration
of people that each new Covid-19 patient
will infect, or what is termed the effective letter to show
reproduction number. An R0 of less than Muhyiddin has lost
1.0 means the infection is not spreading. majority support

468,526 Covid-19 doses BY AHMAD NAQIB IDRIS
administered on Aug 2 theedgemarkets.com
A total of 468,526 doses of Covid-19
vaccine were given on Monday (Aug 2), KUALA LUMPUR (Aug 3): Umno di-Pertuan Agong, the Supreme Council
the second consecutive day the country president Datuk Seri Zahid Hamidi said has unanimously agreed to withdraw its
delivered over 400,000 jabs compared a number of Umno members of Parliament support for PN and Tan Sri Muhyiddin
with 500,000 doses previously. (MPs) have signed a declaration letter in- Yassin as prime minister.
dicating their withdrawal of support for
The latest figure was down 2.42% Prime MinisterTan Sri MuhyiddinYassin. “Tan Sri Muhyiddin must take responsibil-
from 480,122 doses administered the ity over the failure and defiance of the govern-
day before. During a Facebook live broadcast, Za- ment he leads, which goes against the decree
hid said the number of MPs that signed of theYang di-Pertuan Agong, by honoura-
Of the 468,526 doses delivered nation- the letter, which has been presented to the bly resigning as prime minister,” said Zahid.
wide, 223,479 individuals received their Yang di-Pertuan Agong, is enough to show
first dose while the remaining 245,047 re- that Muhyiddin has lost majority support Meanwhile, Lenggong MP Datuk Seri
ceived their second jab, according to the and that his premiership is invalid. Shamsul Anuar Nasarah announced his
Special Committee for Ensuring Access resignation as the Energy and Natural Re-
to Covid-19Vaccine Supply (JKJAV), cit- At the time of writing, Umno had yet to sources Minister, saying he wishes to focus
ing data from the Covid-19 Immunisa- confirm with the media the actual number on serving his constituents and fortifying
tion Task Force (CITF). of MPs that signed the declaration. Umno, as it faces an increasingly challeng-
ing political situation.
These brought the total Covid-19 Zahid said the Umno Supreme Council,
vaccine doses administered so far in at a meeting today, decided to not defend “After considering several decisions and
Malaysia to 21.67 million. the Perikatan Nasional (PN) government, stands taken by the party, I, as an obedient and
which he deemed “has clearly failed in the loyal Umno member, hereby tender my resig-
A total of 14.47 million people or 44.3% eyes of the people”. nation as a member of the Federal Govern-
of the nation’s population have received ment Cabinet,” he said in a short statement.
their first dose at least, including 7.2 million “In expressing its loyalty to the Yang
or 22% who have been fully inoculated.

Daily Covid-19 deaths since
March 1, 2021

250 195
Malaysia’s Covid-19
200 death toll: 9,598

150 (as of Aug 3, 2021)

100 Motion to debate KUALA LUMPUR (Aug 3): A motion
Emergency to debate and annul the Emergency Ordi-
50 nances can be brought forth to the Parlia-
Ordinances can be ment sitting slated next month, said Prime
0 Aug 3, 2021 brought forth to Minister Tan Sri MuhyiddinYassin.
March 1, 2021 Parliament next
month — PM He said this is in accordance withYang
Sources: Ministry of Health, di-Pertuan Agong Al-Sultan Abdullah
CPRC Kebangsaan Ri’ayatuddin Al-Mustafa Billah Shah’s
decree and Article 150 (3) of the Federal
Read also: Bernama Constitution.
Ministry to consider proposal to
control price of Covid-19 test kit BLOOMBERG “The motion will be discussed in the
Click here Cabinet meeting tomorrow and it is hoped
Malaysia receives 415,000 doses of that it will solve the polemics on the rev-
AstraZeneca vaccine contributed by ocation of the Emergency Ordinances in
UK Click here a harmonious and constitutional way,” he
EMCO to be enforced at nine said in a statement here today.
localities in three states —
Hishammuddin Click here “It is notified that the process of revoking
More PPVINs to be opened to the Emergency Ordinances byYang di-Per-
expedite vaccination of transport tuan Agong as advised by the Cabinet on
sector frontliners, says Wee Click here July 23, 2021 cannot be completed,” he said.

Muhyiddin said according to the Fed-
eral Constitution, the end of the Procla-
mation of Emergency on Aug 1 made the
revocation of the Emergency Ordinances
academic.

Wednesday august 4, 2021 4 TheEdge CEO morning brief

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Infineon takes revenue hit from Malaysia
shutdown, production outages compound

automotive chip supply crunch

by Douglas Busvine With the Melaka “This is leading to production stoppages,”
Reuters plant only expected to said Ifo’s Oliver Falck. “The shortages of semi-
conductors will persist for some time to come.”
BERLIN (Aug 3): Chipmaker Infineon Tech- return to producing
nologies said on Tuesday that production out- at full capacity this Infineon will be able to raise output of spe-
ages at two of its plants had hit deliveries to core month, Infineon faces cialist power-management chips with the com-
automotive clients, as the German car industry a hit in the double- missioning of its new plant in Villach, Austria,
battles the worst supply crunch in three decades. digit millions of euros but it still relies heavily on Asian contract man-
(dollars) that will run ufacturers that are running flat out.
Just as Munich-based Infineon was recover- into its fiscal fourth
ing from a winter storm that crippled its plant quarter to Sept 30.” Infineon’s revenue grew by 1% to 2.72 billion
in Austin, Texas, a new wave of coronavirus euros ($3.23 billion) in the fiscal third quarter
infections forced the shutdown of one of its — Reinhard Ploss, from the prior three-month period, shy of expec-
plants in Malaysia in June. Infineon chief executive tations in a poll of 22 analysts byVara Research.

The production outages mean that, com- And, although year-on-year revenue growth
pared to European rival STMicroelectronics, was 25%, that was below the 43% reported by
Infineon was less able in its fiscal third quarter STMicro, which last week raised its outlook
to profit from strong demand for everything on high demand and improved pricing power.
from smartphones to automobiles.
Infineon maintained its forecast for revenue
The German car industry, the export pow- in its fiscal year to Sept. 30 of 11 billion euros,
erhouse of Europe’s largest economy, is also while nudging up its guidance for segment re-
struggling: BMW warned onTuesday that chip sult margin — a measure of operational prof-
shortages would dent its results later this year itability — to above 18%.
after a strong first half. Read also: Global semiconductor sales up 29%
y-o-y in June to US$44.5 billion, demand ex-
Commenting on the automotive industry, pected to keep rising, says SIA Click here
which accounts for two-fifths of sales at In-
fineon, Ploss said recovery was being held back
by “acute supply limitations across the entire
value chain”.

“Inventories are extremely tight and end de-
mand is being postponed. All in all, it will take
time to get back to a supply-demand equilib-
rium. In our view, this will take until well into
2022,” Ploss told analysts on a conference call.

Infineon shares narrowed sharp early loss-
es to trade 1.4% down at mid-morning in
Frankfurt.

Revenue hit
Ploss said inventories were “at a historic low; our
chips are being shipped from our fabs straight
into end applications”.

Under those circumstances, any govern-
ment-imposed lockdowns — such as the one
at Melaka in Malaysia where Infineon has a
production site — were especially grave.

With the Melaka plant only expected to re-
turn to producing at full capacity this month,
Infineon faces a hit in the double-digit millions
of euros (dollars) that will run into its fiscal
fourth quarter to Sept 30, he said.

Confirming the grim picture, the Ifo eco-
nomic research group said on Tuesday that the
German car industry and its suppliers faced the
worst chip supply shortage in 30 years. A poll
showed that 83% of companies were affected,
up from 65% in April.

Wednesday august 4, 2021 5 TheEdge CEO morning brief

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Hartalega’s 1Q net profit breaks new record
at RM2.26b, up 102% q-o-q despite lower
average selling price

by Ahmad Naqib Idris Hartalega Holdings Bhd’s quarterly revenue and net profit
theedgemarkets.com
Revenue (RM bil) Net pro t (RM bil)
KUALA LUMPUR (Aug 3): Hartale- 4
ga Holdings Bhd’s net profit doubled to 3.90 2.5
RM2.26 billion for the first quarter ended 2.26
June 30, 2021 (1QFY22) against RM1.12
billion in the preceding quarter ended 3 2.0
March 31, 2021 (4QFY21).
2.13 2.30 1.5
The figure reported for the quarter had
exceeded expectations, as analysts forecasted 2 1.35 1.0
the group to post an average RM972 mil- 0.5
lion of net profit each quarter, of the total 0.92 1.00 1.11
RM3.89 billion full-year net profit forecast. 0.22
Net profit of RM2.26 billion is more than 1 0.70 0.71 0.72 0.68 0.64 0.71 0.80 0.78
half of the market consensus forecast. 0.12 0.12 0.12 0.09 0.09 0.10 0.12 0.11
0.54
Hartalega chief executive officer Kuan
Mun Leong commented that moving for- 00
ward, while average selling prices (ASPs)
of nitrile gloves have been declining from 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
their peak, global demand is expected to
remain heightened, particularly due to new FY19 FY20 FY21 FY22
waves of cases with Covid-19 variants af-
fecting many countries. Source: Bursa Malaysia

The quarter-on-quarter (q-o-q) net On a year-on-year comparison, Har- al installed capacity.With the completion
profit growth recorded far exceeded the talega’s net profit soared 928% from of NGC 1.5, the group’s annual installed
12% q-o-q growth recorded in 4QFY21. RM219.72 million in the previous year’s capacity will increase to 63 billion pieces
corresponding quarter as the ASP and sales per annum,” said Hartalega.
Quarterly revenue expanded 69% q-o-q were substantially lower a year ago at the
to RM3.9 billion from RM2.3 billion in the start of the global Covid-19 pandemic. The group said the delta variant of Cov-
preceding quarter, according to Hartele- id-19 is driving surges of new infections
ga’s filing to Bursa Malaysia. Quarterly revenue swelled 324% to worldwide, and therefore it expects demand
RM3.9 billion compared with RM920.09 for medical supplies, such as gloves, to re-
The group proposed a final single tier million a year ago. main elevated in the immediate term.
dividend of 19.75 sen per share, the highest
payout for the financial year ended March Going forward, the group said it will “For the longer term, the structur-
31, 2021 (FY21).This brings the total div- continue to expand its capacity in NGC, al step-up in demand in the glove sector
idend per share to 50.95 sen for FY21. Sepang, adding that eight out of 10 lines will further spur demand growth, driven
in Plant 7 have been commissioned. by increased glove usage from emerging
The final dividend is subject to the ap- markets with low glove consumption per
proval of its shareholders at the upcoming Upon full commissioning, it said Plant capita and increased hygiene awareness,”
annual general meeting slated for Sept 7. 7 will have an annual installed capacity of said Kuan, who is also the controlling
Upon approval, the dividend will be paid 2.7 billion pieces. shareholder holding a 34.4% stake.
on Oct 8, 2021.
Meanwhile, NGC 1.5 — another up- The founder also noted that Hartale-
coming expansion — is currently underway ga will continue to enforce Covid-19 pre-
with the group aiming to commission the ventative measures in its operations to en-
first line by December 2021. sure no supply disruptions, adding that
it has kick-started the immunisation pro-
“NGC 1.5 expansion plans include four gramme for its employees.
additional production plants which will
contribute 19 billion pieces to the annu-

Wednesday august 4, 2021 6 TheEdge CEO morning brief

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Let’s set our differences aside to nurture
Malaysia back to health

by Tengku Zafrul Aziz Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz

Oft-times, in the face of adversity systematically via the NRP? I believe the ing medium-term strategies to structurally
and crisis, the most Malaysian NRP is our best hope yet — and currently reform the economy.
thing to do is put our differences our most viable multi-voice solution — in
aside and work together to over- exiting this pandemic. Domestic political cooperation on man-
come them.This is most apparent during aging Covid-19 is not something new. In
natural disasters, or monsoon floods. Oth- This is why we have also invited mem- Canada, policies on economic relief and
er examples include past financial crises, as bers of opposing political parties like Pa- health safety measures were developed
well as the SARS and Japanese Encephali- katan Harapan, Warisan and of course, with broad consensus from both sides of
tis health crises, to name a few. Pejuang, who has unfortunately officially the aisle. New Zealand which has been
refused the invitation. In gathering view- exemplary in the fight against Covid-19
Our beloved country is still in a health points from as many quarters as possible, established a bipartisan committee to over-
and economic crisis. Many countries, in- a good idea is a good idea, it should not see the nation’s pandemic response. Most
cluding Malaysia, who had successfully matter who proposes it. In fact, this is ex- recently in South Korea, both the govern-
contained the virus before are currently actly what the MOF did during Budget ment and opposition came together in a
seeing a spike in cases due to the Delta 2021, when we incorporated various pro- rare bipartisan agreement on additional
and Lambda variants, which are more le- posals — even from the Opposition parties budgetary allocations.
thal and infectious than earlier versions. — in the budget.
Yes, there may be much reason for many Our people deserve the same, if not bet-
of us to be angry and play the blame game. Pejuang’s rejection aside, this will not ter.Why can’t we show the same political
But, the omnipresent threat of the virus ill stop us from continuing to reach out and will and cooperation to save our Rakyat?
affords us such luxury. engage all sides to consider everyone’s Our esteemed parliamentarians did this
views in implementing the NRP. As I have for the Covid-19 Bill in August 2020, for
It is exactly this threat that underscores repeatedly said, the plan needs to be dy- which I am sure the people are deeply
the urgency of the National Recovery Plan namic because the virus mutates aggres- thankful as it enabled aid and assistance
(NRP) which is based on six core princi- sively, and we need to be agile in adapting to be channelled to the Rakyat.
ples, including reopening our economy; the plan to current situations.
being guided by science and data; taking I am confident we will be able to do
a whole-of-nation approach; and ensuring Closing ranks does not mean we have to it again through the NRP. I trust that all
the plan is dynamic and adaptable. agree with all the policies presented by the stakeholders are rich in their desire to see
government of the day. In fact, many with- our beloved country free from the clutches
At the heart of this core, however, is a in the council have been the government’s of a devastating global pandemic.We must
sincere and serious effort cutting across fiercest and harshest critics. But when lives seize this opportunity to work together,
party and ideological lines to embrace a are clearly at stake and our healthcare is cooperate and ensure that Malaysia gets
diverse set of opinions — from opposition tottering, we must rise above our differ- back on its growth trajectory.
parties, non-governmental organisations, ences and work together so we can truly
the business community as well as eco- bring the country out of the doldrums of I pray for sense over political satire; and
nomic, health and social welfare experts this wretched pandemic. for peace over posturing. Do not let our
— towards a common goal. differences douse the Malaysian spirit to
The NRP is meant to “cover” us un- nurse our nation back on its feet again. Let
Ultimately, however, it is all about the til December 2021, and until Covid-19 us, for once, put those differences aside,
Rakyat’s lives, which must be protected by can be managed as endemic. Beyond De- and draw upon that sense of solidarity from
ensuring our healthcare system — particu- cember 2021, the nation’s recovery will deep within each of us, to unite and en-
larly its capacity to respond — can cope, be supported by Budget 2022, to address sure victory in our war against Covid-19,
and by ramping up our National Covid-19 short-term economic revitalization efforts, so we can one day declare that we have
Immunisation Programme. and theTwelfth Malaysia Plan, represent- Menang Bersama!

It is important for everyone to remain
united and focused on the task at hand
by looking at the bigger picture. It is like
we are on a flight, and the plane suffers
some technical problems that need to be
fixed in mid-air to avoid a crash. Instead
of focusing on ensuring everyone’s safe
landing, the crew bicker about changing
the pilot instead. Imagine us the Rakyat as
passengers on that flight — how do we feel?

Lives are at stake in our country, and
the Rakyat need to know that we have got
our act together to try and help this coun-
try exit safely from the pandemic. So, why
waste a valuable opportunity to pool our
viewpoints, knowledge, ideas and resources

Wednesday august 4, 2021 7 TheEdge CEO morning brief

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Lam Research
launches

manufacturing
plant in Penang

with RM1b
investment

Bernama

GEORGETOWN (Aug 3): Lam Research Lam Research Corporation president and CEO Tim Archer says the new manufacturing plant at the
Corporation, a global supplier of innova- Batu Kawan Industrial Park has a floor space of 800,000 sq ft, 100,000 sq ft more than planned earlier.
tive wafer fabrication equipment and ser-
vices to the semiconductor industry, to- said at a press conference after the virtual semiconductor manufacturing, which
day officially launched its new facility in launching ceremony. creates prospects for more high-value job
Batu Kawan, Penang with an investment opportunities for the local workforce,” he
of RM1 billion. Also present at the ceremony were Ma- said.
laysian Investment Development Authority
Its president and chief executive officer (MIDA) deputy CEO Ahmad Khairuddin Meanwhile, Lam Manufacturing Ma-
(CEO)Tim Archer said the new manufac- Abdul Rahim, US Ambassador to Malay- laysia general manager Soon K Kuek said
turing plant at the Batu Kawan Industrial sia Brian D McFeeters and Penang Chief that in line with the expansion of the new
Park has a floor space of 800,000 sq ft, Minister Chow KonYeow. facility, the company has also hired more
100,000 sq ft more than planned earlier. local talent.
Chow expressed encouragement that
He said the new manufacturing facility more global semiconductor companies She said that earlier this year, Lam Re-
will serve as the hub for Lam Manufactur- are expanding their operations to Penang, search committed to hiring 350 local em-
ing’s operations in Asia and is expected to proving the state government’s efforts in ployees to fit into high-value jobs, such as
ramp up production to become the highest creating a sustainable environment, vigor- production technicians, assemblers and
volume manufacturing facility among the ous industrial ecosystem and supportive operation-centric professionals.
group’s global sites. infrastructure appeal to major investors.
“We have already exceeded this num-
“Moving forward, our plans are to con- “Penang will be able to move up the ber now and by the end of this year, we
tinuously hire and build strong partner- global semiconductor value chain by un- are looking to hire more than 600 local
ships with local supply chains, so that we locking new opportunities in front-end workers,” she added.
can increase our output over the next six
to 12 months, and meet the very strong
global demand for semiconductors,” he

KUALA LUMPUR (Aug 3): Bank Pem- Bank Chairman Datuk Seri Nazir Razak said
bangunan Malaysia Bhd (BPMB) remains Pembangunan the Covid-19 pandemic had hit business-
committed to supporting the country’s Malaysia offers es and industries hard and as a develop-
economic recovery in line with its devel- five financing ment finance institution, BPMB plays a
opmental mandate and is offering five fi- schemes worth catalytic role to help businesses and the
nancing schemes totalling RM5.6 billion, RM5.6b, targeting economy recover.
targeting key strategic sectors. key strategic
“It is in unprecedented times like this
The bank said the financing schemes, sectors that BPMB has to step up with counter-
in addition to its general corporate bank- cyclical lending by looking at business
ing facilities, are offered at preferential fi- Bernama viability over longer horizons and pro-
nancing rates to targeted sectors, includ- viding viable companies support over
ing digitalisation, sustainability, maritime this extreme but temporary downturn,”
and logistics, tourism and public trans- he said.
portation.
He said since inception, BPMB had
“BPMB welcomes viable projects and been a strong partner to businesses in
businesses in these eligible sectors to sub- support of the development of Malaysia’s
mit their applications. economy and improving the lives of the
rakyat, guided by its vision and mission
“So far these schemes, previously an- statement as Malaysia’s leading develop-
nounced by the government, have seen mental partner.
a total of RM2.4 billion being approved
for utilisation, leaving RM3.2 billion still “We are reinforcing our focus, given the
available for deployment,” it said in a state- crucial needs of the country at the mo-
ment today. ment.” Nazir said.

Wednesday august 4, 2021 8 TheEdge CEO morning brief

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DBS ranks Latest Asian ex-Japan Latest G10 DEER valuations
Malaysian ringgit DEER valuations
G10 FX: DEER valuations
as cheapest Asian FX: DEER valuations
currency in
PHP Over-valued 13.7 NZD Over-valued 9.7
region
THB 4.2 USD 8.9

INR 3.3 CHF 7.7

TWD 2.4 EUR 4.6

by Cheryl Poo KRW -0.3 AUD 0.2
theedgemarkets.com
CNY -1.3 CAD 0.2
KUALA LUMPUR (Aug 3): DBS Group
Research has ranked the Malaysian ringgit IDR -5.6 GBP -1.6
as the cheapest currency within the basket
of Asian ex-Japan currencies, followed by MYR -13.7 Under-valued JPY -12.8 Under-valued
the Indonesian rupiah and Chinese yuan -15 0 15 -15 0 15
renminbi.
Sources: IMF, CEIC, DBS Sources: IMF, CEIC, DBS
Today, in a research note, its for-
eign exchange and credit macro strate- ciated significantly and is Asia’s worst level since June 2014.
gist Chang Wei Liang said the range of performing currency on a year-to-date “Give the New Zealand dollar (NZD)
over- and under-valuations based on the basis,” Chang said.
equilibrium exchange rate (DEER) strat- a miss,” Chang added.
egy was “much starker, with the ringgit’s Meanwhile, the DEER strategy rec- DBS said its DEER strategy explicitly
under-valuation looking very sharp at ommended long positions in the Japanese
-13.7% but [with] persistent risks from yen, pound sterling and Canadian dollar accounted for interest rate differentials
Covid-19 infections and political uncer- (CAD) on top of short positions in the US and that making no recommendation on
tainty weighing on sentiment”. dollar, Swiss franc and the euro. NZD was a calculated outcome, having
factored in the likelihood that returns
“The Philippine peso, Thai baht, and Chang said the CAD’s valuation, being from the mean-reversion of NZD’s val-
Indian rupee are ranked as the most ex- supported by rising oil prices, contribut- uation may not offset the higher NZD
pensive.The baht’s over-valuation remains ed to an improvement in Canada’s overall carry costs over the expected lifetime of
quite sizeable, even though it has depre- terms of trade and now stood at its best the trade.

KUALA LUMPUR (Aug 3): Malayan Maybank foreign susceptible to foreign equity sell-off”.
Banking Bhd’s (Maybank) foreign share- shareholding falls Chan said HLIB retained its “buy” call
holding fell to 16.23% as at July 23, 2021, to lowest in over
the lowest in more than four years since on Maybank shares with an unchanged
February 2017, according to updates on four years target price of RM9.40.
Maybank’s website.
by Cheryl Poo At Bursa Malaysia’s 12:30pm break to-
Maybank, which has 11.69 billion is- theedgemarkets.com day, Maybank’s share price settled up one
sued shares, said that a week earlier (July sen or 0.13% at RM8 for a market value
16, 2021), its foreign shareholding stood wrote in a note that in HLIB’s opinion, of about RM93.52 billion.
at 16.26%. Maybank’s risk-reward profile is skewed
to the upside, premised on Maybank being Since the beginning of 2021, Maybank’s
The financial services provider, which a prime candidate for rotational recovery share price had declined to current levels
provides foreign shareholding data from play among the FBM KLCI’s 30 constitu- from its year-to-date highest closing share
as far back as 2012, did not elaborate on ents and the notion that Maybank is “less price of RM8.55 on March 11, 2021.
the updated figures.
Today, CGS-CIMB Securities Sdn Bhd
A glance across these numbers show analyst Ivy Ng Lee Fang wrote in a note
that Maybank’s latest-reported foreign that foreign investors were the largest net
shareholding figure at 16.23% as at July 23, seller of Malaysia-listed equities last week
2021 is the lowest since Feb 17, 2017 when (July 26 to 30, 2021).
its foreign shareholding stood at 16.24%.
Ng said foreign investors’ net selling
On Feb 10, 2017, Maybank’s foreign flow rose 292% to RM580 million worth
shareholding stood at 16.16%, the group of equities last week, their highest weekly
said. net sale value year to date.

Maybank’s lowest foreign shareholding “They were net sellers of the financial
on record was 13.33% on Jan 6, 2012 while services and consumer product sectors,”
the highest figure was 25.99% on May 24, she said.
2013, according to the group.
She said today foreign investors’ top
Today, Hong Leong Investment Bank three net sell stocks last week were Public
Bhd (HLIB) analyst Chan Jit Hoong Bank Bhd, Maybank and CIMB Group
Holdings Bhd.

Wednesday august 4, 2021 9 TheEdge CEO morning brief

home

UOB Research shares short-term picks
as it repositions portfolio; expects market

to trend up in August

KUALA LUMPUR (Aug 3): UOB Kay- by sulhi khalid It added that the company has an “ap-
Hian Research expects the domestic mar- theedgemarkets.com pealing prospective dividend yield” of
ket to trend up in August, underpinned by >7.5% in FY22-23.
eventual loosening of lockdown restrictions phases starting this month,” it said.
and bright spots in the reporting season, For ATA IMS, UOB KayHian opined As for MyEG (TP:RM2.65),the research
the research house said in a note today. house believes that forthcoming blockchain
that it is an “underappreciated” EMS player development and issuance of stablecoins will
It highlighted that the FBM KLCI is al- which is staging a two-year net profit CAGR contribute positively to the group’s earnings.
ready trading at its trough valuations of 1,490 of 23% vis-a-vis its undemanding valuation
(14.3 times forward PE) and has declined to of two-year forward PE of 14 times. It has a It also shared that the group recently re-
its lows, which coincided with the deteriora- “buy” recommendation for the stock with ceived health authorities’ approval to com-
tion of the Malaysian political scene. a target price (TP) of RM2.95. mercially distribute Zhifei’s Covid-19 vac-
cines and Brethonix’s rapid Covid-19 Breath
The research house shared its “alpha As for CIMB (TP: RM5.10), UOB Kay- Test in Malaysia and Philippines, which will
picks” for the month of August — ATA Hian expects the banking group “to stage the provide a catalyst to its share price.
IMS Bhd, CIMB Group Holdings Bhd, strongest earnings growth among peers”with
Hap Seng Plantations Bhd (HAPL), Inari an estimated two-year CAGR of over 100%. On Press Metal (TP: RM6.30), the group
Amerton Bhd, Magnum Bhd, My EG Ser- is in a sweet spot to reap the positive spillover
vices Bhd (MyEG), Press Metal Aluminium Meanwhile, the research house sees the of stronger aluminium prices riding on strong
Holdings Bhd andYinson Holdings Bhd. share price catalyst for HAPL (TP: RM2.45) demand from China, shortages of aluminium
to be coming from strong earnings in the up- supply and preference for low carbon and
UOB KayHian opined that all the stocks coming quarters as CPO price has been trad- greener aluminium,noted the research house.
are direct or indirect beneficiaries of the eco- ing above RM4,000/tonne since March 21.
nomic re-opening which would allow (in “As Press Metal (using mostly hydraulic
phases) the loosening of workforce restric- For Inari (TP: RM4.30), UOB KayHi- power as an energy source instead of coal
tions and operational re-commencement. an expects the catalyst for the company to power) is also registering its product under the
come from exponential growth from RF green aluminium category, we believe such
Alpha picks, it explained, denotes a segment, revival of iris scanner business practice could result in Press Metal becom-
timeframe of one to three months and not and P34 plant seeing positive progression. ing the preferred environmental, social and
UOB KayHian’s usual 12-month invest- corporate governance investing target,” it said.
ment horizon for stock recommendation. “With the wide dispensation of Cov-
id-19 vaccines which will allow Malaysia Meanwhile, UOB KayHian opines that
It expects its picks to benefit from the to achieve herd immunity by Oct 21, Mag- markets may soon price in Yinson’s (TP:
market’s expected turnaround when Ma- num’s valuations will partially price in the RM7.25) winning chances for imminent
laysia closes in on achieving herd immunity steep earnings recoveries in 2022. PDB (Parque Des Baleais) and Pecan
in September or October. FPSO awards. It added thatYinson is likely
“Magnum’s business model is defensive the sole bidder for both the mega FPSO
“The nation’s daily vaccination rate is and inelastic in nature,as ticket sales will quick- contracts as bids are closing in the near
encouraging, with almost all the targeted ly recover to 80-85% of pre-Covid-19 levels term and these were projects that the com-
residents in the Klang Valley having re- after Malaysia exits the current lockdown, as pany had bid for before, but were delayed/
ceived their first vaccine dose. We expect witnessed from the past few post-lockdown re- terminated due to the Covid-19 pandemic.
the country’s lockdown to be loosened in openings,” it said on Magnum (TP: RM2.45).

U OB KayHian Researc h’s Top Alpha Picks
Company Recommendation Catalyst

ATA IMS Bhd Buy An underappreciated EMS player which is staging a two-year net profit CAGR of 23%
vis-a-vis its undemanding valuation of 2-year forward PE of 14x.

CIMB Group Holdings Bhd Buy Expected to stage the strongest earnings growth among peers with an estimated 2-year
CAGR of over 100%

Hap Seng Plantations Buy Historical high earnings and ASP for the company since listing. 2021 dividend yield to rise
Holdings Bhd to 6.2%

Inari Amerton Bhd Buy Exponential growth from RF segment, revival of iris scanner business and P34 plant seeing
positive progression.

Magnum Bhd Buy Potential replacement draw days in 2022, monetisation of UMobile stakes and appealing
prospective yield of about 7%

MyEG Services Bhd Buy Decent revenue streams from MySafeTravel related services and escalating nationwide

COVID-19 testing, higher job matching volume on government’s redeployment programme,
significant earnings contribution from Zhifei’s vaccine distribution upon receiving authority

approval and potential extension of tax incentive status

Press Metal Aluminium Buy Staging a two-year net profit CAGR of +84% from 2020 on structural growth, while cost
Holdings Bhd ratio remains low

Yinson Holdings Bhd Buy Markets may soon price in Yinson’s winning chances for imminent PDB and Pecan FPSO
awards. Likely the sole bidder for both the mega FPSO contracts

Source: UOB KayHian Research

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KUALA LUMPUR (Aug 3): Japanese Japan’s Itochu “A million tons of ammonia blended
trading house Itochu has agreed to con- to conduct with coal at a 20-80 ratio is enough to
duct a joint feasibility study with a Ca- power two one-gigawatt power station
nadian subsidiary of Malaysian state feasibility study units for a year.
energy firm Petroliam Nasional Bhd with Petronas’
(Petronas) on commercial production subsidiary in “The Japanese government aims to
of ammonia in Canada in 2026, accord- have the country consume three mil-
ing to a report by Nikkei Asia today. Canada on lion tons of ammonia fuel each year by
production of 2030,” Nikkei Asia added.
Deemed one of the world’s larg-
est manufacturing facilities for the ammonia Meanwhile, a Japanese public-private
clean-burning fuel, Itochu also inked group estimated that generating electric-
a deal with a local infrastructure com- by Sulhi Khalid ity from ammonia on its own will cost
pany that builds gas pipelines for the theedgemarkets.com ¥23.5 (21 US cents or about 91 sen)
feasibility study. per kilowatt-hour — one-fourth of the
cost of hydrogen, a clean fuel on which
“The US$1.3 billion (about RM5.49 Japan has bet big.
billion) plant will manufacture ammo-
nia from natural gas extracted from a Nikkei Asia reported that even com-
field owned by the Petronas unit, mak- pared to cleaner green ammonia, using
ing up to one million tons per year. blue ammonia slashes power generation
cost by up to two-thirds, making it a
“Ammonia generates no carbon di- more commercially viable choice.
oxide when burned and can be blended
with coal to reduce emissions at fos- Materials and transportation make up
sil-fuel power plants,” the report said. the bulk of the cost. Canadian natural
gas has fallen in prices because of com-
Itochu also plans to ship the fuel to petition with US shale gas, and pipelines
Japan, helping to bring the coal-reli- to transport it to ammonia production
ant country a step closer to meeting facilities are already in place.
its emissions-cutting goals.
It takes just under 10 days to ship
“Ammonia from the new plant will ammonia to Japan or Southeast Asia
be shipped from Western Canada by from Canada, so transportation cost is
sea to Itochu’s home country, main- expected to be low.
ly for sale to power companies as well
as manufacturers that generate their Ammonia is widely used as a fertil-
own power, such as steel and chemi- iser ingredient, and the technology for
cal makers. producing and transporting it is already
well established.

KUALA LUMPUR (Aug 3):The Malay- MSPO “Palm oil will continue to be the
sian Sustainable Palm Oil (MSPO) cer- certification at powerhouse of the oils and fats mar-
tification is currently at the final stage of final stage of ket despite the conservation narratives
revision and is expected to be ready by revision, expected focused on specific themes such as trop-
the end of 2021 or early 2022. to be ready soon ical deforestation and misleading an-
ti-palm oil campaigns,” Ahmad Parveez
The revised MSPO certification is ex- Bernama stressed.
pected to have new standards that include
the latest sustainability requirements and and pharmaceuticals, the need for this He said Malaysia is planning to get
practices. golden crop has never been higher and MSPO recognition from the Beijing Or-
is projected to increase, so does the de- ganising Committee on Olympic Winter
The certification scheme is the nation- mand for it to be sustainably produced,” Games 2022 (BOCOG), the same rec-
al scheme for oil palm plantations, inde- director-general Ahmad Parveez Ghulam ognition that Malaysia got from the To-
pendent and organised smallholdings, and Kadir told Bernama. kyo Organising Committee on Olympic
palm-oil processing facilities. Games 2020.
Despite its huge advantage and usage
There are three separate standards almost everywhere, be it in food, soaps, or An earlier discussion on this had been
under the MSPO scheme, which are the lipsticks, palm oil has been perceived neg- initiated by MPOB with BOCOG.
MSPO 2530-2 requirements for inde- atively byWestern countries, which associ-
pendent smallholders; MSPO 2530-3 re- ate it with deforestation in Southeast Asia. The MSPO has been made mandatory
quirements for oil palm plantations and since Jan 1, 2020 and its status is at par
organised smallholders; and MSPO 2530- Nevertheless, the world uses more palm with the Roundtable Sustainable Palm Oil
4 requirements for palm oil mills. oil than any other vegetable oil (about 73 (RSPO) certification.
million tonnes in 2020).
According to data from the Malaysian “Perhaps it is more premium as it com-
Palm Oil Board (MPOB), as of July 29, plies with all the relevant national and
5.279 million hectares of oil palm-planted international laws with regard to sustain-
areas out of a total 5.865 million hectares ability,” Ahmad Parveez said.
(90%) have been certified with MSPO, in- Read also: CPO futures end higher
cluding the independent smallholders, or- in anticipation of weaker production
ganised smallholders, and estates category. Click here

“As palm oil is used widely in the form
of cooking oil, processed food, cosmetics

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news In brief

MEX II bonds at risk of downgrade Dufu Technology 2Q net profit rises 61% to RM16m, pays two sen dividend
to D, says MARC
KUALA LUMPUR (Aug 3): Dufu Technology Corp Bhd’s net profit jumped 60.86% to
KUALA LUMPUR (Aug 3): Malaysian RM15.92 million for the second quarter ended June 30, 2021, from RM9.9 million a
Rating Corp Bhd (MARC) said today that year ago, on strong hard disk drives (HDD) components demand. Quarterly revenue
MEX II Sdn Bhd’s RM1.3 billion sukuk rose 20.18% to RM88.22 million, from RM73.41 million previously, mainly due to an
murabahah programme and RM150 million increase in volume loading by customers related to HDD components, the group said
junior bonds which carry ratings of CIS/C in a filing to Bursa Malaysia. Dufu also attributed the strong double-digit growth to the
remain at risk for an imminent default. enormous demand for sheet metal welded assembly components and parts, and the
MARC said in a statement that MEX II’s buoyant orders coming from control and sensors in the non-HDD segment. The group
liquidity remains severely strained and it also noted that the manufacturing plants in Malaysia operated at a much-reduced level
was understood that no material progress of workforce arising from the enforcements on Movement Control Order (MCO) in the
was made in the planned restructuring preceding year’s corresponding quarter. Dufu has declared an interim dividend of two
of its financial obligations “MEX II faces sen per share, payable on Sept 24. Dufu’s share price closed five sen or 1.11% lower at
a looming repayment of around RM68.7 RM4.46, valuing the group at RM2.43 billion. — by Tan Siew Mung/theedgemarkets.com
million on Aug 27, 2021, followed by a
further RM38.2 million on Oct 29, 2021. “It LTAT appoints Raja Mohamed Affandi BLand sells 6.7 million more BFood
reported cash of just about RM7.8 million as chairman shares for RM12.55m, trimming
in its finance service reserve account at stake to 1.36%
end-May 2021,” it said. MARC believes KUALA LUMPUR (Aug 3): Lembaga Tabung
that the financial market conditions remain Angkatan Tentera (LTAT) has appointed General KUALA LUMPUR (Aug 3): Berjaya
challenging for MEX II to be able to raise (Retired) Tan Sri Raja Mohamed Affandi Raja Land Bhd (BLand) said it has disposed
capital in time to repay the upcoming Mohamed Noor as its new chairman, effective of an aggregate of 6.7 million shares
sukuk maturities. “As such, the ratings will today. He takes over from General (Retired) representing a 1.88% stake in Berjaya
be downgraded to ‘D’ on missed payment Tan Sri Dr Mohd Zahidi Zainuddin, who is Food Bhd (BFood) between June 15
on Aug 27, 2021,” it said. — by Tan Siew retiring from the post since his appointment until July 30. In a Bursa Malaysia filing,
Mung/theedgemarkets.com in August 2018. In a statement, LTAT said Raja BLand said the disposals were carried
Mohamed Affandi was appointed as the 19th out via direct business transactions for
HB Global’s recently-acquired Chief of Defence Forces on Dec 16, 2016. He RM12.55 million at an average price
telecom unit wins contract from retired in 2018, after serving the Malaysian of RM1.87 per share. Post disposals,
Axiata subsidiary Armed Forces (MAF) for 42 years. Prior to BLand now holds a total of 4.85 million
leading the MAF as Chief of Defence Forces, BFood shares, representing a stake of
KUALA LUMPUR (Aug 3): China-based he served as the 25th Chief of Army in 2013. 1.36%. The net cash proceeds from the
frozen food maker HB Global Ltd said its “LTAT welcomes General Tan Sri Raja Affandi disposals will be used to repay bank
recently-acquired telecommunication unit as the new chairman. With his long years of borrowings and for working capital,
has secured a contract from Axiata Group military service, General Tan Sri Raja Affandi BLand said, noting that the disposals
Bhd’s subsidiary to provide full-turn key will offer his wisdom and provide his guidance enabled the group to cash out part of
fibre implementation work. HB Global said to the board and the management, in our its investment in BFood. It added that
Forward Resources and Construction Sdn effort to transform LTAT into a sustainable and the disposals have no effect on the
Bhd (FRC), in which it acquired a 60% stake competitive retirement fund,” said LTAT chief BLand’s issued share capital, net assets,
in April, was awarded the RM10 million executive Datuk Ahmad Nazim Rahman. — by earnings and gearing. — by Justin Lim/
contract by wireless telecommunications Ahmad Naqib Idris/theedgemarkets.com theedgemarkets.com
services provider On Site Services Sdn Bhd
today. HB Global said the commencement HPP shuts Melaka factories, office the infected workers have been placed
date of the one-year contract will be for two weeks after eight Covid-19 under quarantine and isolation and will
decided later. FRC intends to fund the cases detected undergo subsequent screening,” it said.
project via internally generated funds or HPP said subject to further directives from
borrowings, said HB Global, adding that KUALA LUMPUR (Aug 3): HPP Holdings Bhd the ministry, the affected factories are
the contract is expected to contribute said it is temporarily ceasing operations for expected to resume operations as soon
positively to the future earnings and net two weeks from today until Aug 17 to carry as the necessary permissions from the
assets of the group. Shares of HB Global out deep sanitisation and disinfection work relevant authorities are obtained. Shares
rose half a sen or 1.45% to close at 35 sen, at its factories and office after detecting of HPP rose 0.5 sen or 1% to close at 50.5
translating into a market capitalisation of eight Covid-19 cases among its factory sen, valuing the group at RM196 million.
RM265.65 million. — by Syafiqah Salim/ employees. The Covid-19 cases were found — by Justin Lim/theedgemarkets.com
theedgemarkets.com at four of its manufacturing facilities located
at Taman Teknologi Cheng in Melaka, said
the offset packaging printing specialist
in a Bursa Malaysia filing. “The company
has conducted Covid-19 swab tests on
employees who have close contact with the
infected workers, the results of which are
pending currently. Notwithstanding this,
employees who have close contact with

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High Court asks Najib, Azhar, Rashidi
to file defence to SRC suit by Aug 30

by Hafiz Yatim Zahid Izzani Mohd Said/The EdgE
theedgemarkets.com

KUALA LUMPUR (Aug 3): The High Najib at the Kuala Lumpur Court Complex on May 17.
Court has today instructed former prime
minister Datuk Seri Najib Razak and two SRC claims defendants committed or placed under his control and a sum of
former SRC International Sdn Bhd di- breach of duties, trust, dishonest US$82,000 that was allegedly transferred
rectors Datuk Mohammed Azhar Osman assistance to his proxy Nik Faisal.
Khairuddin and Datuk Che Abdullah @ SRC, in its 80-page statement of claim filed
Rashidi Che Omar to file their defence to on Friday (July 30) against the defendants, The firm claimed that after Najib’s fall
the US$1.15 billion suit filed by the com- claimed that in respect to the suit against from power, detailed investigations were
pany by Aug 30. Najib, Suboh,Azhar, Rashidi and Nik Fais- done on all the transactions, and it noticed
al, the company is accusing them of breach that crucial documents linked to the fraud
The directive was made by Justice Da- of duties, breach of trust, receipt of wrongful committed against SRC were destroyed.
tuk Ahmad Fairuz Zainol Abidin follow- property, dishonest assistance, conspiracy
ing case management which was done via and wrongful conversion of SRC property. In January 2019, the company was
video conferencing today. placed under the care of the Ministry of
According to the statement of claim, the Finance (MoF), where the various fraudu-
This follows SRC having filed its state- defendants were also allegedly involved in lent transfers and embezzlement of money
ment of claim on Friday (July 30), after it abuse of power or authority, dishonesty and were discovered.
filed its writ to the suit on May 7 this year misappropriation of SRC funds and acting
in a plethora of legal actions on that day. with the knowledge or probability of harm- SRC claimed that Najib helped approve
ing the company. the KWAP loans in a bid to misappropriate
Justice Ahmad Fairuz also directed the and embezzle the funds.
company to file its reply to their defence The company claimed Najib as the advi-
by Sept 30, and the court will have its next sor emeritus and leader of the government The company further claimed that Sub-
case management on Oct 4. supported the company and gave the go- oh, Nik Faisal, Azhar and Rashidi ought to
ahead for it to get the RM4 billion KWAP have known that the proposed investment
The court also directed SRC, which loans in 2011 and 2012, leading to the bulk funds were for the specific purpose of in-
was represented by lawyer Lisa Yong, to of the funds being transferred overseas and vestment activities but were instead utilised
look into the possibility of utilising sub- not recovered. for something else, where they authorised
stitute service to serve the documents on the utilisation of the funds resulting in the
the fourth defendant, namely Nik Faisal It claimed that Najib changed the in- fraudulent or wrongful transfers.
Ariff Kamil, who was said to be Najib’s vestment structure of which the loans were
right-hand man in the company. Nik Faisal supposed to be utilised — from the facility The company also claimed that the
had left the country. agreement — going against Bank Negara four of them conspired to wrongly injure
Malaysia’s (BNM) requirements. SRC, resulting in it going against BNM’s
Najib was represented by Muhammad requirements.
Farhan Shafee while counsel Datuk Loh SRC as the abbreviation suggests, mean-
Siew Cheang appeared for Azhar, andWan ing Strategic Resource Company, was Hence, SRC is seeking a declaration
ShahrizalWan Ladin appeared for Rashidi. meant to meet Malaysia’s alternative energy from the High Court that Najib and the
needs from its reliance on petrol and coal. four others are liable to account for the
Datuk Suboh MdYassin, the other for- losses due to their fraudulent breach of du-
mer director who was named as a defend- The firm further showed the money trail ties and trust.
ant, was not represented. in the utilisation of the fund, including a
sum of US$120 million that had alleged- The company also seeks an order that
Last week, it was reported that SRC ly gone into the former premier’s account they pay the US$1.18 billion in losses suf-
has dropped its former chairman Tan Sri fered by the company and damages for
Ismee Ismail and former director Datuk breach of duties and trust.
Shahrol Azral Ibrahim Halmi from the
list of defendants in the suit.

Suboh and Ismee had testified in the
SRC criminal trial involving Najib, while
Shahrol had also testified against the pre-
mier in the ongoing 1MDB trial.

Najib had been found guilty by the
High Court on July 28 last year on seven
counts of abuse of power in relation to the
Retirement Fund Inc (KWAP) RM4 bil-
lion loan in 2011 and 2012, and criminal
breach of trust and money laundering of
RM42 million of SRC funds.

For this, the 68-year-old Najib was sen-
tenced to 12 years’ jail and fined RM210
million, against which his appeal is still
pending a decision at the Court of Appeal.

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Is parliamentary democracy dead?
A rejoinder legal opinion

KUALA LUMPUR (Aug 3): A case was by Philip TN Koh, Lawyer & this rule to shut out legitimate motions
made in www.theedgemarkets.com Professor (Adjunct), University of Malaya for debate and decision.The language of
dated August 02, 2021 by my learned Article 62(3) is “shall be appointed …;
friend from the Malaysian Bar, Rosli theedgemarkets.com “this means the Agenda but not that,”...
Dahlan that there is no constitutional cri- it is determined “suggesting that theYAB
sis and that the heated controversy over cannot be suborned by a reading of Stand- Prime has the exclusive control over the
the Parliamentary Sitting is “Much ado ing Orders. business of the House when it sits.
about nothing”. I respectfully disagree.
The analogy to Company meetings is The Chair of the House is the Speak-
Parliamentary session and nature of apposite.The Constitution of a Company er and the analogy of law of meetings
Standing Orders of Parliament demarcates the boundaries which a Gen- for Company it is valid that the Speaker
Parliamentary procedure is provided for eral Meeting is conducted and cannot be communicates with the Prime Minister
by Article 62 of the Federal Constitution, set aside by the Chair and or any member. to list down,”... the business of the day.
“Subject to the provisions of this Con- Any rules governing the conduct of meet-
stitution and of federal law, each House ing cannot be used or abused to negate There is no basis to make a funda-
of parliament shall regulate its own pro- any motions or proposed for the Meeting mental distinction between so called
cedure.” Article 62(4) further provides, merely on the basis the Chairman decides Special Session and Ordinary Sitting.
“In regulating its procedure each House on the business for the day. An Agenda When Parliament convenes the session
may provide, as respects any decision re- is but a mode for which shareholder de- is a sitting.
lating to its proceedings, that it shall not mocracy is expressed.The only ground for
be made except by a majority or by a rejecting motions or proposed resolutions In fact Standing Order 14 (1) opening
specified number of votes. There is no would be that they are extraneous to the words are revealing,
voting by proxy as Article 62(5) states,” business of the day.
Members absent from a house shall not “Unless the House otherwise directs,
be allowed to vote.This has implications Reliance has been placed on Standing the business of the house of each sitting
to hybrid meetings wherein a Member Order 11 (3), “the business set down for shall be transacted in the following order:
participates through electronic media. that day shall be appointed by the Prime
Minister …:” It is respectfully submitted Even in the so called ordinary sitting
So the foundation for the House pro- that this is but a directory rule and does where, inter alia the august ceremonial
cedures is determined by Article 62 and not imply that the Prime Minister can use order of business( which include Mes-
sages from Seri Paduka Baginda Yang
Di-Pertuan Agung ) is subject to “ Un-
less the House otherwise directs …

continues on Page 14

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from Page 13 To also suggest that the under Article 150(3);” cannot be justified
business of the House as a matter of law on the facts. It is con-
This is a strong unequivocal affirma- is merely to hear the ceded that the Executive can take steps to
tion of Parliamentary Sovereignty within revoke and it is a matter of fact whether
our written Federal Constitution. It is trite presentation of the it has done so. There are now statement
that the Constitution “is the Supreme law Covid-19 National from the Palace suggesting otherwise and
of the Federation … (Article 4(1)). recovery Plan is to also there is no gazette notification of the
castrate the exercise revocation. In any event the Legislature
It is disingenuous to suggest that once of Parliamentary is in session and sitting and merely by an
Parliament has a sitting the business of the democracy. In any announcement of honorable Minister of
Session is wholly confined by what is ap- event the measures of law that the Cabinet has revoked cannot
pointed by the Prime Minister.This is akin the National recovery pre-empt debate and vote on the same by
to an EGM being convened and the Agen- plan are vitally and the Dewan Rakyat.
da once settled can determine exclusively inextricably connected
the course of the meeting. Nothing in the with the Proclamation The statement by the Palace
Standing Order can overrule the operation To dismiss the Statement and “shorn(ing)
and applicability of the provisions of the of Emergency them of formal language and niceties;” is
Constitution of Malaysia. It may even be and Ordinances inadequate with the role of a Constitutional
correct to observe that once the Prime Min- promulgated under Monarch. Repeating extant case authorities
ister appointed the business of the Sitting his Article 150 of the where security issues are involved as appli-
office is focus offcio and it’s for the Speaker cable simpliciter does not clinch that legal
to then allow the House to determine how Constitution. position. So too Article 40 of Constitution
that business is conducted. which clearly enjoins that His Majesty shall
act in accordance with advice of the Cabi-
To also suggest that the business of the net and the Minister authorized cannot be
House is merely to hear the presentation of used to reduced His Majesty’s role to be
the Covid-19 National recovery Plan is to merely a rubber stamp or a cipher. Even
castrate the exercise of Parliamentary de- if the assent and Royal Seal ought to be
mocracy. In any event the measures of the given as a matter of both article 40 and by
National recovery plan are vitally and inex- convention it cannot be categorically be
tricably connected with the Proclamation dismissed.The Istana is entitled to ask for
of Emergency and Ordinances promulgat- clarification and information from the Gov-
ed under Article 150 of the Constitution. ernment. It is also interesting in this mat-
ter of “revocation” the Role of the Special
And notwithstanding that the Executive Committee that was set up by Ordinance
government of the day represented by the appears to be minimal or non-existent. It
Prime Minister and Cabinet has authori- has been said that whilst a Constitution-
ty and power to Proclaim Emergency and al Monarch is to abide with Executive ad-
issue Ordinances the overriding powers in vice His Majesty office is also a guardian of
a state of exception (Carl Schmitt) is cir- the constitution to provide wise advice and
cumscribed when the Legislature sits and views so that the functioning of Constitu-
is desirous to pass a vote of annulment of tional governance is not torn asunder. Mere
the same. citation of previous case authorities based
on differing factual matrix cannot ipso fac-
To prevent the moving of such a mo- to be asserted to marginalize or negate the
tion and the casting of a vote on the same role of a Monarch, albeit a Constitutional
impairs this vital check and balance which office is entitled to respect. His Majesty in
the Constitution framers certainly did not taking the oath of office has in accordance
countenance. with Article 37 and Fourth Schedule “sol-
emnly and truly declare that [YDPA] shall
Statement by Law Minister justly and faithfully perform (carry out du-
As to whetherYB Minister of Law statement ties) in administration of [Malaysia] in ac-
of revocation amounts to misleading Parlia- cordance with its laws and Constitution …
ment would best be left to the House.The and uphold the rules of law and order in the
Hansard record must be read in its totality. country.” So too every Minister, Member of
Parliament and Yang di Pertua (Speaker),
If the effect is to pre-empt and avoid a “… [To] preserve, protect and defend the
vote on annulment it appears to give sup- Constitution.”
port that the House can move a motion and
a vote to annul. The Federal Constitution matters and
it rest on all of us, ruled or ruling elites to
Process of emergencies abide by it. Unless the Constitution Office
Much ink has been expended in this area holders of the Organs of the Constitution
of law. It was conceded by my learned work together in harmonious decision-mak-
friend that “the Government did lay before ing the fabric of our nation can be threat-
the House the Emergency Ordinances.” ened and broken.
However to add that, “there is no need to
debate or move a motion on the continued
existence of the Emergency ordinances
given the fact that the Government had
made the decision to ‘sooner revoke‘ them

W E D N E S D A Y A U G U S T 4 , 2 0 2 1 15 T H E E D G E C E O M O R N I N G B R I E F

IF YOU ARE
NOT PART OF
THE SOLUTION

YOU WILL BE
PART OF

THE PROBLEM

Vaccinations reduce infections and save lives*
Get yourself vaccinated

Get your family, friends and colleagues
to register for vaccination

Join the race to build herd immunity

*Covid-19 Vaccines Advice

– World Health Organization

*Benefits of Getting Covid-19 Vaccines

– US Centre For Disease Control & Prevention

THIS IS A COMMUNITY SERVICE MESSAGE ON FIGHTING COVID-19

W e d n e s d a y a u g u s t 4 , 2 0 2 1 16 T h e E d g e C E O m o r n i n g b r i e f

world

Global banks’ US$170b haul marks
most profitable year ever

LONDON (Aug 3): Never mind banker by Harriet Habergham en the remaining uncertainty,” said Lau-
burnout, return-to-office headaches, and Bloomberg rie Mayers, associate managing director
new pandemic waves.A simple reality stands at Moody’s Investors Service in London.
out for the biggest global investment banks: Reuters “The more positive outlook for major
they’re minting money like never before. economies including house price inflation
As the dust settles over earnings season, a total is, however, driving pressure on banks to
As the dust settles over earnings sea- profit of more than US$170 billion from a dozen release provisions.”
son, a total profit of more than US$170
billion from a dozen of the biggest firms of the biggest firms in the past four quarters Some lenders such as HSBC Holdings
in the past four quarters shows how far shows how far the industry has come from the Plc are using their extra headroom to re-
the industry has come from the frazzled frazzled early stages of the pandemic. JPMorgan ward shareholders, as central banks start
early stages of the pandemic. JPMorgan to relax limits designed to promote lend-
Chase & Co was the standout, earning Chase & Co was the standout, earning the ing during the pandemic. “We definitely
the equivalent of US$131 million a day. equivalent of US$131 million a day. feel more confident,” Chief Financial Of-
ficer Ewen Stevenson said on Bloomberg
A string of trading wins certainly helped Banks with wealth and asset Television. “We will keep buybacks under
the sector in the early days of Covid-19, and management units enjoyed review” together with dividends, he said.
as last year’s market volatility faded, invest-
ment bankers were ready to fuel the boom buoyant equity markets With the pandemic still blazing in sev-
in takeovers and fundraisings via special pur- as the world economy eral regions of the world and rock-bottom
pose acquisition vehicles. Banks with wealth began to recover, aided by interest rates weighing on banks’ lending
and asset management units enjoyed buoyant unprecedented government income, it remains to be seen if the indus-
equity markets as the world economy began try can break its profit record. Investors
to recover, aided by unprecedented govern- support programs. may cast a sceptical eye toward the re-
ment support programs.The same trend also serve releases that have flattered earnings
proved a boon to retail units, long seen as a This upswing in corporate activity mir- in recent quarters, yet they “are a function
drag on earnings, as they started to unwind rored optimism in many parts of the global of the underlying macroeconomy and un-
loan loss provisions. economy after months of Covid restric- derwriting acumen,” according to Jefferies
tions. In turn, banks felt confident enough analyst Joseph Dickerson.
Goldman Sachs Group Inc and Mor- to start unwinding vast reserves built for
gan Stanley also broke their profit records, an economic meltdown that hasn’t arrived. “Some of the revenue trends may sus-
while European counterparts UBS Group In Europe alone, the top nine banks re- tain themselves, particularly as fee income
AG and Barclays Plc posted their high- ported an 88% decline in provisions in continues to recover and whilst large scale
est earnings in a decade as the likes of recent weeks. writebacks may not repeat we continue to
Deutsche Bank AG and Societe Generale believe that consensus estimates for credit
SA credited the improving world econo- “All of the banks we rate in the UK costs are too conservative,” said Dickerson.
my for boosting their business. Banking and Europe are still holding back materi-
stocks reflect this strong run of results, al reserves for expected credit losses giv- Susannah Streeter, senior investment
with the Dow Jones US Banks Index up and markets analyst at Hargreaves Lans-
59% over the past year and the Eurostoxx down, said in a note after HSBC’s earnings
Banks Index up 56%. that the investment banking upswing could
be subsiding, having supported lenders
Elevated markets activity benefited through the lean months for retail banking.
traders who were once out of favour at
Deutsche Bank and Barclays, while JP- “Given the frightening twists the global
Morgan’s investment bank posted its best economy has had to deal with due to the
quarter in history thanks to dealmaking emergence of new variants, the worry is
and advisory fees. that there could still be monsters lurking
under the bed,” she said.

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world

Tencent vows fresh gaming curbs after
‘spiritual opium’ attack zaps US$60 billion

reuters

SHANGHAI (Aug 3): China’s Tencent by Brenda Goh & Samuel Shen would investigate auto chip distributors and
Holdings Ltd said onTuesday it would fur- Reuters punish any hoarding, collusion, and price
ther curb minors’ access to its flagship video gouging. The semiconductor stock index
game, hours after its shares were battered by ‘Spiritual opium’ subsequently fell more than 6%.
a state media article that described online has grown into an Child well-being
games as “spiritual opium”. The reposted Economic Information Daily
industry worth article, in a shift of tone, said that authori-
Economic Information Daily citedTen- hundreds of billions. ties, game developers, and families had to
cent’s “Honor of Kings” in an article in work together to combat child addiction
which it said minors were addicted to on- “’Spiritual opium’ has grown into an to online video games, and parents had to
line games and called for more curbs on the industry worth hundreds of billions,” the be responsible for supervision.
industry.The outlet is affiliated with China’s newspaper said.
biggest state run news agency, Xinhua. Chinese regulators have since 2017
“... No industry, no sport, can be al- sought to limit the amount of time minors
The broadside reignited investor fears lowed to develop in a way that will destroy spend playing video games and companies
about state intervention in China after Bei- a generation.” including Tencent already have anti-ad-
jing had already targeted the property, edu- diction systems that they said cap young
cation, and technology sectors to curb cost Opium is a sensitive subject in China users’ game time.
pressures and reassert the primacy of social- which ceded Hong Kong island to Britain
ism after years of runaway market growth. “in perpetuity” in 1842 at the end of the But authorities have in recent months
First OpiumWar, fought over Britain’s ex- placed fresh focus on protecting child
“They don’t believe anything is off limit port of the drug to China where addiction well-being, and said they want to further
and will react, sometimes overreact, to any- became widespread. strengthen rules around online gaming
thing on state media that fits the tech crack- and education. Last month, they banned
down narrative,” EtherYin, partner atTrivi- Tencent in a statement said it will in- for-profit tutoring in core school subjects,
um, a Beijing-based consultancy. troduce more measures to reduce minors’ attacking China’s US$120 billion private
time and money spent on games, starting tutoring sector.
China’s largest social media and video with “Honor of Kings”. It also called for
game firm saw its stock tumble more than an industry ban on gaming for children That added to other regulatory action
10% in early trade, wiping almost US$60 under 12 years old. in the technology industry, including a ban
billion from its market capitalisation. onTencent from exclusive music copyright
The company did not address the arti- agreements and a fine for unfair market
The stock was on track to fall the most cle in its statement, nor did it respond to practices.
in a decade before trimming losses after the a Reuters request for comment.
article vanished from the outlet’s website and At one point on Tuesday, Tencent was
WeChat account onTuesday afternoon.The The article also hit rivals’ shares. NetEase briefly dethroned as Asia’s most-valuable
article later reappeared later in the day with Inc dropped more than 15% before paring firm by market capitalisation by chipmak-
the historically loaded term “spiritual opium” losses to sit around 8% lower in late after- erTaiwan Semiconductor Manufacturing
removed and other sections edited. noon trade. Game developer XD Inc fell Co Ltd.
8.2% and mobile gaming company GMGE
The CSI300 index last week fell more Technology Group Ltd dropped 15.6%. Read also: Japanese game stocks’ plunge
than 5% for its biggest monthly loss since shows exposure to Chinese regulations
October 2018. Outside of gaming, investors were also Click here
caught off guard by the State Administration
In the original article, the newspaper had For Market Regulation onTuesday saying it
singled out “Honor of Kings” as the most
popular online game among students who,
it said, played for up to eight hours a day.

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world

Singapore’s BENGALURU (Aug 2): Singaporean ag- FinAccel to go
Wilmar ribusiness Wilmar International said on public in US$2.5
Monday it was pursuing a listing of its joint
International venture AdaniWilmar in India through an billion SPAC
targets US$605m initial public offering worth up to 45,000 deal
million Indian rupees ($605.19 million).
Indian IPO for by Yoolim Lee
AdaniWilmar AdaniWilmar, a 50-50 joint venture be- Bloomberg
tween the company and Indian conglom-
by Arundhati Dutta erate Adani Group, is expected to list on (Aug 3): FinAccel Pte, the parent com-
Reuters the BSE and the National Stock Exchange. pany of Indonesian fintech startup
Kredivo, agreed to go public in the U.S.
Adani Wilmar sells kitchen commodi- through a merger with a blank-check
ties such as edible oil and wheat in India firm that values the combined compa-
under a diverse range of brands. nies at US$2.5 billion.

Wilmar International did not disclose FinAccel is merging with VPC Im-
an issue price for the listing, and said it was pact Acquisition Holdings II, a special
dependant on factors including the book purpose acquisition company sponsored
building process under Indian regulations by Chicago-basedVictory Park Capital
and receipt of applicable approvals. Advisors LLC, the companies said in a
statement on Tuesday.
bloomberg
The deal will include a private in-
Maersk ratchets “The strong quarterly performance is vestment in public equity, or PIPE, of
up profit mainly driven by the continuation of the US$120 million from investors includ-
exceptional market situation with strong ing MarshallWace, Corbin Capital, SV
guidance after rebound in demand causing bottlenecks in Investment, Maso Capital and Victory
freight rates the supply chains and equipment shortage,” Park Capital. Separately, existing back-
the company said. ers Naver Corp. and Square Peg Cap-
soared ital agreed to invest US$55 million of
Over the past year, freight rates have re- equity.
by Christian Wienberg peatedly broken through record highs amid
Bloomberg intense demand and limited supply. On the Singapore-based FinAccel is the lat-
demand side, consumers who were unable est startup in Southeast Asia to take ad-
(Aug 3): A.P. Moller-Maersk A/S, the to channel savings into restaurant visits in- vantage of a U.S.-led SPAC boom. It’s
world’s largest container line, raised its guid- stead spent their money on imports. On set to become the first dedicated fintech
ance for profit this year after freight rates the supply side, already-tight capacity was startup in the region to list in the U.S.,
soared as lockdowns prompted more people hit by bottlenecks that squeezed traffic in joining Singapore’s Grab Holdings Inc.
to spend money on having goods shipped. key routes. and PropertyGuru Pte, which are also
planning to go public via blank-check
The Copenhagen-based company add- Rates are now at “unsustainable” levels companies.
ed almost US$5 billion to the midpoint of and should cool off next year, according to
its operating profit forecast, according to a Lee Klaskow, a senior analyst at Bloomberg Going public through the SPAC pro-
statement on Monday. Full-year Ebitda will Intelligence. While container line earnings cess lets the company “diversify the in-
be US$18 billion to US$19.5 billion, up look set to peak in 2021, next year’s prof- vestor base and access larger amounts
from a previous forecast of US$13 billion it levels will remain high compared with of capital faster,” FinAccel Chief Ex-
to US$15 billion. Underlying Ebit will be historical averages, Klaskow said in a July ecutive Officer Akshay Garg said in an
in a range of US$14 billion to US$15.5 bil- 22 note. interview. “The deal puts up to US$430
lion compared with US$9 billion to US$11 million on the company’s balance sheet,
billion seen previously. Maersk, which in May said it will buy which gives us the firepower to build a
back US$5 billion in stock, is scheduled large, diversified, digital financial ser-
to release its full second-quarter report on vices business in Southeast Asia.”
Aug. 6.
Click here to read the full story Victory Park Capital and Kredivo
began speaking about a potential deal
after the fintech closed a US$100 mil-
lion credit facility from the firm in June,
Garg said.

“We thought it made a ton of sense,”
he added.

The proposed business combination
is subject to approval by the SPAC’s
stockholders and regulators.The merg-
er is expected to close no later than the
first quarter of 2022, according to the
statement.

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world

BENGALURU (Aug 3): China’s Alibaba Alibaba misses nese regulatory crackdown on industry,
Group Holding Ltd missed analyst esti- revenue estimates during which Alibaba has become one of
mates for first-quarter revenue on Tues- the main targets.
day, as its e-commerce business was hurt as e-commerce
by rising competition from smaller players growth slows, Late last year, regulators halted a
such as JD.Com Inc and Pinduoduo Inc. planned US$37 billion initial public of-
regulatory fering of Ant Group in Shanghai and sub-
Alibaba’s results mirror those of e-com- crackdown sequently called for a restructuring of the
merce giant Amazon.com Inc in the United financial unit.
States, as the easing of pandemic-related persists
restrictions has led to more consumers vis- In April, China’s anti-monopoly reg-
iting physical stores rather than ordering by Nivedita Balu ulator fined Alibaba US$2.75 billion for
online. Reuters engaging in anti-competitive practices.

Core commerce revenue for Alibaba 13.48 billion yuan in the quarter ended During an earnings call with investors,
rose about 35% to 180.24 billion yuan in March, according to the Chinese e-com- Alibaba chief executive officer Daniel
the quarter, compared with estimates of merce giant’s filing. Zhang said the company would continue
184.23 billion yuan. In the fourth quarter, to monitor the impact of ongoing regula-
the unit’s revenue surged more than 70%. Alibaba, which holds about a third of tory changes on the company’s business.
Ant, posted a profit of 4.49 billion yuan
Overall, revenue rose about 34% to for the quarter ended June 30 from its in- He cited a recent regulatory crackdown
205.74 billion yuan (US$31.83 billion) vestments in the financial conglomerate. on community marketplace platforms let-
in the first quarter ended June 30, below ting sellers offer items below market price
estimates for 209.39 billion yuan, accord- Revenue in Alibaba’s cloud computing as one example of a sector the compa-
ing to IBES data from Refinitiv. division grew 29% year-on-year, reaching ny is monitoring, in addition to the Data
16.05 billion yuan (US$2.49 billion). Security Law and an investigation from
Net income attributable to shareholders the Ministry of Industry and Information
fell to 45.14 billion yuan, compared with The results come amid an ongoing Chi- Technology into open links between rival
47.59 billion yuan a year earlier. platforms.

On an adjusted basis, the company “We are in the process of studying the
earned 16.60 yuan per share, above esti- regulatory requirements, evaluating the po-
mates for 14.43 yuan. tential impacts on our relevant businesses
and we will respond positively with ac-
Ant Group, the fintech affiliate of Al- tions,” Zhang said.
ibaba Group, recorded a profit of about

BP returns under
scrutiny as big

oil plies investors
with cash

by Laura Hurst, Redd Brown
& Benjamin Busby
Bloomberg

LONDON (Aug 3): BP Plc, the first major RBC analyst Biraj Borkhataria. topped its return with a surprise dividend
oil company to announce share buybacks as Analyst estimates compiled by Bloomb- hike. TotalEnergies SE will allocate up to
it emerged from the pandemic, could find 40% of additional cash flow generated above
that it still has plenty more to do after its ri- erg show that of the five supermajors, BP’s US$60 a barrel oil price to buybacks.
vals announced larger shareholder returns combined dividend and buybacks are ex-
last week. pected to lag behind some of the others on BP was the first to announce a US$500
a per share and absolute basis in the second million repurchase plan in the first quarter,
The biggest oil companies are compet- half of this year. Chevron Corp is forecast but that only offsets shares that were given to
ing to attract investors as growing climate to return the most for each share that in- employees, Borkhataria said. He doesn’t ex-
concerns cool interest in their shares.They vestors hold while Exxon Mobil Corp has pect BP to follow in Shell’s footsteps, partly
are looking to get to the front of the line by the highest absolute payout in the period, because the company is likely to have limited
promising larger dividends and reinstating according to the data. funds for buybacks this quarter.
stock repurchases as rising commodity prices
boost profit. Focus now turns to BP, which Exxon, still burdened by a heavy debt “However, given strong commodity pric-
will close out Big Oil’s second-quarter earn- load, was the only oil major not to announce es the company could ramp it up ahead of
ings on Tuesday. bigger buybacks last week. Chevron revived higher expected cash generation in the sec-
repurchases and Royal Dutch Shell Plc ond half of the year,” he said.
“I’m sure the management team is
feeling the pressure to ratchet up its buy-
back program after many of its peers
have announced new programs,” said

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world

NEWYORK (Aug 3): KKR & Co gath- KKR crushes year has also been driven by KKR’s ac-
ered a record amount of money in the fundraising quisition of retirement and life insur-
second quarter, helping the alternative record with ance provider Global Atlantic Financial
asset manager inch closer to its capi- US$59 bil Group, which closed in February. The
tal-raising target as demand surges quarterly haul firm’s perpetual capital, or long-term
among yield-hungry investors. money, has seen an uptick as a result,
by Melissa Karsh rising to US$130 billion in the quarter,
The firm raked in about US$59 bil- Bloomberg according to the statement.
lion in the three months ended June 30,
driven largely by the initial closings of bloomberg KKR has been one of the world’s
the latest North America buyout fund, most acquisitive buyout firms through-
global infrastructure fund and core Henry Kravis out the pandemic. It deployed US$19
private equity fund, New York-based billion in capital in the three-month peri-
KKR said in a statement Tuesday. The od, expanding on last year’s momentum
haul exceeded the record of US$44 as the firm concentrates on investing in
billion raised for all of last year and big themes such as technology-related
blew past its previous quarterly peak of bets and has been active across strate-
US$16.4 billion in the second quarter of gies, including real estate, private equity,
2020. infrastructure and direct lending.

“This was an exceptional quarter Among the second-quarter highlights:
for KKR,” Co-Chief Executive Officers • Distributable earnings of US$1.05
Henry Kravis and George Roberts said
in the statement. “Momentum across a share set another record in the pe-
the firm remains high.” riod. That’s higher than the aver-
age estimate of analysts surveyed by
The influx of cash brings the firm’s Bloomberg.
fundraising tally for the first half to • The opportunistic real estate portfo-
roughly US$73 billion, putting it well lio was up 10% before fees and the
on its way to reaching its goal of col- private equity portfolio gained 9%.
lecting more than US$100 billion by • Fee-paying assets rose nearly 11%
2022. from the first quarter to US$319 bil-
lion.
The inflows helped lift assets under • KKR had dry powder of US$112 bil-
management to US$429 billion, up 93% lion, up 62% from the quarter prior.
from a year earlier.The asset growth this

SINGAPORE (Aug 3): Huawei plans to Huawei to give player of its kind in China and fifth-largest
invest US$100 million (about RM422.5 regional start- worldwide in the infrastructure-as-a-ser-
million) to support the regional start-up up ecosystem vice market.
ecosystem over the next three years. US$100m boost
over next three The company is stepping up the support
The company, which is already sup- for the start-ups via four new initiatives,
porting start-ups via its hubs in Singa- years aimed at cloud-plus-cloud collaboration,
pore, Hong Kong, Malaysia andThailand, continuous tech innovation, global and
aims to expand its reach to Indonesia, theedgesingapore.com local services, and high-quality business
the Philippines, Sri Lanka and Vietnam ecosystems, says Zhang Ping’an, CEO of
as well. it has grown and diversified to become a Huawei’s Cloud Business Unit.
leading name in mobile networking, mo-
It is hoping to sign up 1,000 start- bile devices, cloud computing and ICT The point on having the ecosystem work
ups, announced the company at the Spark infrastructure services. closely together was also made by Dr Lim
Founders Summit on Aug 3. Jui, CEO of SGInnovate.
Chen hopes to extend Huawei’s ex-
“We all know how brilliant start-ups perience and resources to help start-ups “The true impact of the Deep Tech
and SMEs are. They are the innovators, grow. One way it is doing so is to let Economy is realized when we’re able to
disruptors, and pioneers of our times,” them tap on Huawei’s ICT services and come together to catalyze new opportuni-
says Huawei’s senior vice president and ecosystem. ties.Working alongside partners like Hua-
board member Catherine Chen. wei enables us to accomplish our mission of
To this end, on Aug 3, Huawei an- supporting promising talent and emerging
She notes that start-ups account for nounced the launch of its Cloud-plus- tech start-ups in Singapore,” he says.
two-thirds of jobs worldwide, create two- Cloud Collaboration and Joint Innovation Read also:
thirds of new jobs, and generate almost Program, building on the Huawei Cloud Western Australia takes step-up in
50% of global GDP. platform launched in 2017. battery chemicals production
Click here
“34 years ago, Huawei was a start-up Huawei Cloud is now the second-largest
with just 5,000 dollars of registered cap- BlackRock joins Citi and HSBC in plan
ital,” she says. “We are fully aware of the to close coal plants early Click here
hardships start-ups go through to survive
and thrive.”

Last year, the company’s revenue was
nearly RMB900 billion.

Better known for its networking equip-
ment early in the company’s early years,

W e d n e s d a y a u g u s t 4 , 2 0 2 1 21 T h e E d g e C E O m o r n i n g b r i e f

world

Remember the Hong Kong Though low vaccination levels local-
benefits of the eases entry rules ly means that delta slipping into the city
office, Britain’s could quickly become catastrophic, the
finance minister for vaccinated financial hub is also facing pressure from
residents, businesses to relax what are some of the
says tourists most onerous travel curbs in the world.
Rival hub Singapore has said it will ease
reuters by Jinshan Hong travel curbs in September after an inocu-
Bloomberg lation rate of 80% is achieved there.
by Guy Faulconbridge
Reuters (Aug 3): Hong Kong will allow vaccinat- The easing leaves only 10 places in
ed tourists from all but 10 places in the the world, including the U.K., India and
LONDON (Aug 3): British finance min- world to enter the city from August 9, in Brazil, that vaccinated visitors are not al-
ister Rishi Sunak said young people ben- a significant easing of some of the tightest lowed to come from. For these “high-risk”
efit from being in offices and he doubted border curbs in the world. places, only fully inoculated residents can
the enduring professional relationships return and they must serve a hotel quar-
that he forged while starting out could Vaccinated visitors from countries now antine period of 21 days. Other high-risk
be made in the same way over Zoom categorized as “medium-risk” — which in- areas on the list are Indonesia, Ireland,
or Teams. cludes the U.S. and Canada — will be able Nepal, Pakistan, the Philippines, Russia
to come to the city for the first time since and South Africa.
The COVID pandemic has left many the pandemic started. Meanwhile, Hong
offices across the world deserted and Kong residents from previously banned The Hong Kong government also di-
some top CEOs have said that the way places like the U.K. and India can now aled up the pressure on the local popu-
people work has changed forever, though return home. lation to get vaccinated, saying that only
some top banks have nudged staff back schools which achieve a 70% vaccination
to the office in London and NewYork. Visitors and residents from medi- level among students in the grade can fully
um-risk places will be asked to spend seven resume in-person teaching in September.
Sunak, who was educated at Oxford days in hotel quarantine upon entry and Teachers must also get inoculated or go
and Stanford, said there would be a grad- they must possess a positive antibody test for regular testing at their own expense,
ual return to the office though with some at a laboratory recognized by the Hong officials said Monday.
changes to working patterns. Kong government to prove they are vacci-
nated against Covid-19. Antibody testing Hong Kong has fully vaccinated 2.5 mil-
“I’ve spoken previously about young facilities at the airport will be available lion people — about 33% of its population.
people in particular benefiting from be- from mid August, according to a govern- That’s compared to 61% of residents who
ing in offices: it was really beneficial to ment statement. had completed vaccination in Singapore,
me when I was starting out in my career,” 48% in London and 54% in NewYork City.
Sunak, who worked at Goldman Sachs The easing, first announced by Chief
and then at hedge funds before entering Executive Carrie Lam on Monday with- Vaccine bookings jumped on Monday
politics, told LinkedIn News. out detail, also allows children who are after officials announced the easing, with
not eligible for vaccination to leave hotel the number of people reserving slots to get
“The mentors that I found when I quarantine with their inoculated parents the Sinovac Biotech Ltd. shot growing to
first started my job, I still talk to and after seven days — though they must then 6,600 on Monday from 4,200 on Sunday
they’ve been helpful to me all through self-isolate at home for another two weeks. and those for the BioNTech SE vaccine
my career even after we’ve gone in dif- rising to 41,600 from 23,100 a day ago.
ferent ways,” he said. The revived plan, first proposed in June,
comes as Hong Kong tries to reopen its Read also:
“I doubt I would have had those economy after nearly two months with- China’sWuhan to test all 12 million
strong relationships if I was doing my out local transmission, while keeping out residents after Delta variant found
summer internship or my first bit of my the highly contagious delta strain that’s “To ensure that everyone in the city is safe,
career overTeams and Zoom, and that’s driving new outbreaks around the world. city-wide nucleic acid testing will be quickly
why I think for young people in particu- launched for all people to fully screen out
lar, being able to physically be in an of- positive results and asymptomatic infections.”
fice is valuable.” Click here

Bloomberg

W e d n e s d a y a u g u s t 4 , 2 0 2 1 22 T h e E d g e C E O m o r n i n g b r i e f

world

Singapore’s Lee urges China,
US to stem deteriorating ties

SINGAPORE (Aug 3): Singapore Prime Min- by Philip J Heijmans outcome can arise from a conflict. It’s vital for
ister Lee Hsien Loong has again warned the US Bloomberg the US and China to strive to engage each other
and China to de-escalate tensions, saying both to head off a clash which would be disastrous
powers presumed incorrectly they would win The US is not for both sides and the world.”
in any conflict. in terminal
Lee said the US under Biden wanted compe-
“The reality is, neither side can put the oth- decline, as some tition with China, but for that competition to be
er one down,” Lee said on Tuesday, speaking by in Beijing believe. fair. “It is a very fine line between that to treating
video link to the Aspen Security Forum. “I think a competitor as the opponent or the adversary.”
that is a possible misunderstanding on both sides.” Equally, China
is not going to At the least, it means greater bifurcation on
The US is not in terminal decline, as some in things like technology, he said. That is as the
Beijing believe, Lee said. Equally, “China is not disappear. US continues to press other countries to keep
going to disappear.This is not the Soviet Union.” Huawei Technologies Co out of their 5G tele-
bloomberg communication networks.
“I don’t know whether Americans realise
what a formidable adversary they would be tak- The remarks come as the Biden administra-
ing on if they decide that China is an enemy.” tion seeks to bolster its presence in Asia. Last
month, theWhite House’s top official for the re-
Over the years, Lee has been vocal in calling for gion said the US’ position in Asia had “slipped”,
the world’s biggest economies to avoid a destruc- losing ground to China as the two nations dis-
tive clash that could force smaller countries like agree on everything from the South China Sea
Singapore — with its open, trade-reliant economy to technology and human rights.
— to choose sides. Following the election of Pres-
ident Joe Biden last year, he said the US should The US has donated millions of Covid vac-
look to develop an “overall constructive relation- cine shots to countries across Southeast Asia
ship” with China under a framework that would amid a surge in virus cases and last week sent
allow the countries to develop areas of common Defense Secretary Lloyd Austin to Singapore,
interest and “constrain the areas of disagreement”. Vietnam, and the Philippines to reassure lead-
ers of its commitment to engagement in the re-
Lee told the forum that views had hardened gion. He also vowed to challenge what he called
in both the US and China, and that the Biden China’s aggression.The US plans to follow up
administration was also constrained as a result, with a visit fromVice President Kamala Harris
even as it brought a more “reliable and predict- to the region later this month.
able” approach to foreign policy than the pres-
idency of Donald Trump. Lee told the forum that US allies were now
feeling a “palpable sense of relief” and looking for
“I think it will be hard to reverse the present long-term foreign policy consistency.“They hope
trend towards more troubled relations but many for a reliable and predictable US which will pro-
countries still hope that the deterioration in the vide a stable anchor for the international order.”
relationship can be checked,” Lee said.
OnTaiwan, Lee said he did not believe China
“Many US friends and allies wish to preserve would make a unilateral strike against the island,
their extensive ties with both powers. No good but warned the situation could “quite easily” be-
come dangerous due to a miscalculation.
Lee Hsien
Loong “I think that they are going to constrain Tai-
wan’s international space as much as they can, but
I do not think that they will make a unilateral, un-
provoked move,” he said. “It’s high risk and even
if it works the victory would be pyrrhic because
what to do with 20 something million people on
an island who are not willing citizens.”

Beijing viewsTaiwan as its territory,even though
it has never controlled the island.Taiwan’s dem-
ocratically elected government rejects the claim,
asserting it is a de facto separate country awaiting
wider international recognition.

China has repeatedly warned the US to stay
out ofTaiwan affairs, even as the Biden admin-
istration criticises its increased military asser-
tiveness in the Taiwan Strait.

“For the Chinese, Taiwan is the mother of
all core interests,” Lee said. “It is the most im-
portant national subject for them and Taiwan
independence is an absolute bright red line.”

W e d n e s d a y a u g u s t 4 , 2 0 2 1 23 T h e E d g e C E O m o r n i n g b r i e f

world

BMW’s chip The contrasting commentary suggests BMW Chinese EV
shortage view is taking a cautious stance on the risks it faces. manufacturer
Li Auto plans
darkens in BMW’s earnings before interest and taxes $1.9 bln Hong
contrast with surged to 5 billion euros (US$5.9 billion) in Kong listing
the second quarter, beating an average analyst
Stellantis estimate of 4 billion euros, thanks to one-time Reuters
items including the reversal of a provision for
by William Wilkes a fine. Still, BMW was downbeat about diffi- (Aug 3): Chinese electric vehicle
Bloomberg cult months ahead. manufacturer Li Auto Inc, said on
Tuesday it was looking to raise as
FRANKFURT (Aug 3): BMW AG warned “The longer the supply bottlenecks last, the much as HK$15.0 billion ($1.93
of uncertain months ahead as the global chip more tense the situation is likely to become,” billion) in an initial public offering
shortage worsens, staying cautious as Stel- Chief Financial Officer Nicolas Peter said in a (IPO) in Hong Kong.
lantis NV surprised with a substantial lift to statement.“We expect production restrictions to
guidance for the year. continue in the second half of the year and hence Li Auto’s proposal for secondary
a corresponding impact on sales volumes.” listing comes nearly a month after ri-
The luxury-car maker said semiconductors val XPeng Inc raised $1.8 billion in its
are a cloud on the horizon, even as it expects BMW has fared better than others thus Hong Kong debut, aiming to bank on
to lose sales of no more than 90,000 cars in far, reporting relatively minor disruptions at the rising investor interest in electric
2021, equivalent to less than 10% of first-half its factories. vehicle makers.
shipments. Stellantis raised its profitability
forecast, saying it could lose production of A year on from the depths of the coronavi- Li Auto, a six-year old Chinese start-
around 1.4 million vehicles, while holding out rus crisis, demand for BMW’s models jumped up which raised $1.09 billion through
hope for improving supply toward year-end. during the second quarter. After Mercedes its Nasdaq listing in July last year, said
outsold its rival by almost 30,500 cars during it would issue 100 million shares in its
the first three months of 2021, BMW nar- Hong Kong IPO at a maximum offer
rowed the year-to-date gap to just over 4,400 price of HK$150 per share.
cars at the end of June.
Click here to read the full story The offer also includes a greenshoe,
or over-allotment option, to sell a fur-
MILAN (Aug 3): Ferrari, the sports car Ferrari boss has ther 15 million shares within 30 days af-
maker synonymous with roaring petrol en- no fears over ter listing, likely taking the total amount
gines, welcomes the shift to electric power- electric future raised to up to HK$17.25 billion.
trains and is confident of retaining its lead
in the market for high performance cars, by Giulio Piovaccari Earlier in the week, Li Auto report-
its chairman said on Monday. Reuters ed a more than three-fold jump in the
delivery of its only mid-size crossover
The European Union last month pro- “We believe that within the industry and SUV, Li ONEs, crossing the 8,000-ve-
posed an effective ban on the sale of new more importantly, outside of our industry, hicle milestone in July.
petrol and diesel cars from 2035 as part we are going to benefit much from part-
of its measures to combat global warming, nerships and joint programmes,” he said. The EV maker will offer up to 10
posing a challenge to automakers that have million shares to investors in Hong
made powerful engines a key selling point. Ferrari has pledged to launch its first Kong and 90 million shares to global
all-electric car in 2025. investors, it said in an exchange filing.
But Ferrari Chairman and acting CEO
John Elkann told analysts on Monday the On Monday, the company reported a tri- Li Auto's proposal for secondary listing comes
company known for its ‘Prancing Horse’ pling in adjusted core earnings (EBITDA) nearly a month after rival XPeng Inc raised
logo saw the change in technology as an for the second quarter to 386 million euros $1.8 billion in its Hong Kong debut, aiming to
opportunity. ($458 million) as shipments recovered from
pandemic-hit trading in the same period bank on the rising investor interest in electric
“We see the regulation as welcome,” El- last year. That was just ahead of analysts’ vehicle makers.
kann said, as Ferrari stuck to its main 2021 mean forecast of 373 million euros.
targets after reporting second-quarter core
profits just ahead of expectations. Ferrari increased its industrial free cash
flow guidance for this year to around 450
“The opportunity set by electrification, million euros from around 350 million, but
electronics and other technologies that are left forecasts for net revenues and adjust-
coming available will allow us to make even ed core earnings (EBITDA) unchanged.
more distinct and unique products,” he said.
Its Milan-listed shares fell as much as
Elkann, the scion of Italy’s Agnelli family 3.45% after the results.They closed down
which controls Ferrari through its invest- 1.9%. Citi analysts said the unchanged
ment company Exor, was speaking weeks earnings guidance, despite strong sec-
before new CEO — technology industry ond-quarter results, raised concerns that
veteran BenedettoVigna — takes the helm margins were expected to come under pres-
on Sept. 1. sure in the second half.

One of Vigna’s tasks could be to forge
new partnerships, along the lines of Ferra-
ri’s existing tie up with Britain’sYasa, now
part of Daimler, to help with the shift to
an electric era, Elkann said.

W e d n e s d a y a u g u s t 4 , 2 0 2 1 24 T h e E d g e C E O m o r n i n g b r i e f

world

End of pandemic safety net sends
gig workers back to square one

by Augusta Saraiva & Josh Eidelson
Bloomberg

WASHINGTON (Aug 3): It took a pandem- ployment benefits, and more are set to follow contractors rather than employees.
ic for America’s army of gig workers to win before the Sept. 6 deadline set by Congress. But it faces a tough passage through the
access to some of the social protections that
regular employees enjoy. Now they’re about Some 59 million Americans freelanced in Senate, with Democrats short of votes to over-
to lose it again. 2020, and 90% of businesses expect to increase come a filibuster on top of a backlash from
their reliance on non-payroll workers within business.The National Retail Federation called
Even before Covid-19 hit, the independ- the next year according to a June survey by it the “worst bill in Congress.”
ent-contract model for workers was spread- contractor management company Stoke.
ing, with companies turning to it as a way to Another bill in the Senate would allow big-
lower costs.The health crisis accelerated that That means risk is shifting from businesses name gig corporations to provide benefits to
trend, and spurred policy makers to offer fi- to individuals, said economist Laura Sherbin, workers who aren’t formally employees — but
nancial support for freelancers when much of senior vice president at Seramount, a consult- only for the duration of the pandemic. It’s also
the economy was shuttered. ing firm focused on workplace diversity.With unclear how much the administration’s Amer-
less job security, what workers really need is a ican Families Plan and American Jobs Plan
The Pandemic Unemployment Assistance stronger social safety net, Sherbin said. would benefit freelancers.
was the first federal-level program geared to-
ward so-called independent workers. It’s now Back in limbo There’s “still a big question mark” over
being wound down, leaving the Biden admin- Instead, many US gig workers are getting how Biden will provide more security for this
istration struggling to figure out how to make thrown back into the safety-net limbo that growing share of the population, said Rafael
life less precarious for a rapidly growing share preceded the pandemic. Espinal, executive director of the Freelancers
of the workforce. Union, who reckons the PRO Act should be
President Joe Biden has backed some meas- the top priority.
For Rubi Jones, a 33-year-old freelance hair- ures that may offer them help.The Protecting
stylist, the PUA was “a breath of fresh air.” In the Right to Organize Act would make it easier The unemployment insurance that the PUA
the absence of any safety net, her strategy often for workers to unionize and collectively bar- offered isn’t the only safety net that freelanc-
was to work long hours.When expecting her gain, even if their companies claim they are ers aspire to.
daughter, Jones cut hair until she was eight-
and-a-half months pregnant, and she was back “I want to have access to health insurance
on the job four weeks after giving birth. that actually takes care of me and my family,”
said Jones, the hair stylist. Her family relies on
When the pandemic hit, that route was policies made available by Obamacare provi-
closed.“My work 1,000% shut down,” she said. sions that have been challenged in Washing-
“From March 13 up until June, when re-open- ton. “I want to not stay up at night worrying
ings happened in NewYork City, I didn’t touch whether or not Congress is going to suddenly
hair except for my own.” Instead she enrolled take that away,” she said.
in the PUA, like more than 15 million Amer-
icans did last summer. Health care is precisely why companies fight
to avoid having to pay benefits for contrac-
There were still about 5.3 million partic- tors, said JoanWilliams, a law professor at the
ipants in the programme as of July 9, and an University of California, Hastings.While other
average of about 100,000 new claims have been benefits like paid leave are “a small drop in the
filed each week since then. But at least half of bucket,” companies often have to budget up to
US states have already ended pandemic unem- 45% more when hiring to cover health-care-re-
lated costs, she said.

Click here to read the full story

W e d n e s d a y a u g u s t 4 , 2 0 2 1 25 T h e E d g e C E O m o r n i n g b r i e f

MARKETS

CPO RM 4,341.0029.00 OIL US$ 72.79-0.10 RM/USD 4.2200 RM/SGD 3.1246 RM/AUD 3.1192 RM/GBP 5.8729 RM/EUR 5.0154

Top 20 active stocks

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

Serba Dinamik Holdings Bhd 230.5 0.025 0.405 -76.99 1502.4

Saudee Group Bhd 143.8 -0.015 0.105 -74.82 75.2

Permaju Industries Bhd 100.2 0.000 0.090 -48.57 83.9

Kanger International Bhd 99.7 -0.005 0.060 -58.62 167.8

Systech Bhd 93.3 0.000 0.305 52.50 105.5

YLI Holding BHD 90.8 0.040 0.460 2.22 47.3

Emico Holdings Bhd 90.6 0.005 0.31 8.77 35.6

Greenyield Bhd 82.0 -0.050 0.330 73.68 110.1

Pasukhas Group Bhd 51.8 0.005 0.1 -72.29 115.7 World equity indices

YGL Convergence Bhd 48.1 -0.025 0.275 77.42 70.3

Fitters Diversified Bhd 43.1 0.01 0.37 45.1 173 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

NCT Alliance Bhd 37.8 -0.005 0.5 53.85 373.6 (%) (%)
DOW JONES 34,838.16 -97.31 -0.28 INDONESIA 6,130.57 34.03 0.56
Eversafe Rubber Bhd 37.5 0.035 0.405 44.64 97.4

Sedania Innovator Bhd 36.8 -0.01 0.725 400 251.7 S&P 500 4,387.16 -8.10 -0.18 JAPAN 27,641.83 -139.19 -0.50

PUC BHD 36.6 -0.005 0.185 15.63 231.3 NASDAQ 100 14,963.62 3.72 0.02 KOREA 3,237.14 14.10 0.44

Globaltec Formation Bhd 35.3 -0.02 0.71 71.08 191.1 FTSE 100 7,111.86 30.14 0.43 PHILIPPINES 6,560.06 113.75 1.76

Ta Win Holdings BHD 34.4 0.01 0.16 113.33 545.8 AUSTRALIA 7,474.50 -16.90 -0.23 SINGAPORE 3,149.25 -11.97 -0.38

BCM Alliance Bhd 33.7 0.005 0.15 -37.27 100 CHINA 3,447.99 -16.29 -0.47 TAIWAN 17,553.76 50.48 0.29

Pelikan International Corp 33.1 0.03 0.45 42.86 271.4 HONG KONG 26,194.82 -40.98 -0.16 THAILAND 1,540.51 15.40 1.01

Dagang NeXchange Bhd 31.4 0.005 0.72 220 2155.6 INDIA 53,823.36 872.73 1.65 VIETNAM 1,332.44 18.22 1.39

Data as compiled on Aug 3, 2021 Source: Bloomberg Data as compiled on Aug 3, 2021 Source: Bloomberg

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

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

PJBUMI Bhd 0.500 38.890 14454.2 78.57 41.0 Borneo Oil Bhd 0.025 -16.67 2592.9 -37.50 178.4

Pegasus Heights Bhd 0.02 33.33 18962.5 -20 212 Greenyield Bhd 0.330 -13.16 81958.7 73.68 110.1

Nexgram Holdings Bhd 0.025 25.000 10705.6 -44.44 91.9 GIIB HOLDINGS Bhd 0.240 -12.73 9644.1 -60.98 87.1

Key Alliance Group Bhd 0.030 20.000 842.1 -40.00 70.6 Saudee Group Bhd 0.105 -12.50 143805.6 -74.82 75.2

Handal Energy Bhd 0.240 17.070 7165.0 -11.11 55.4 Sanichi Technology Bhd 0.035 -12.50 2903.0 -87.61 49.1

MNC Wireless Bhd 0.035 16.670 126.0 -22.22 61.6 Golden Pharos BHD 0.460 -12.38 8919.4 87.76 63.9

PDZ Holdings Bhd 0.035 16.670 7924.7 -61.11 35.4 CME Group BHD 0.045 -10.00 1721.1 -25.00 43.6

Puncak Niaga Holdings Bhd 0.385 14.930 5176.9 -17.20 172.2 Minda Global Bhd 0.095 -9.52 6379.5 58.33 125.6

Encorp Bhd 0.320 14.290 11330.2 36.17 101.2 Resintech Bhd 0.665 -9.52 16947.1 107.81 91.2

XOX BHD 0.040 14.290 2830.1 -63.64 161.4 Chuan Huat Resources BHD 0.59 -9.23 3387.4 35.63 99.5

TSR Capital BHD 0.325 14.040 21170.5 6.56 56.7 SerSol Bhd 0.455 -9.00 23448.1 133.33 100.1

Mlabs Systems Bhd 0.045 12.5 726 -43.75 54.4 YGL Convergence Bhd 0.275 -8.33 48089.2 77.42 70.3

Idimension Consolidated Bhd 0.095 11.760 7459.0 18.75 25.8 Magna Prima Bhd 0.525 -7.89 65.0 -40.34 174.6

CYL Corp BHD 0.630 11.500 5741.1 34.04 63.0 Eurospan Holdings BHD 1.190 -7.75 277.6 96.69 52.9

CWG Holdings Bhd 0.535 11.460 13513.9 62.12 67.3 Kanger International Bhd 0.060 -7.69 99718.8 -58.62 167.8

Federal International Holdings 0.590 11.320 12585.1 31.11 72.2 Bina Puri Holdings BHD 0.060 -7.69 468.0 -45.45 85.9

Impiana Hotels Bhd 0.050 11.110 491.5 -37.50 62.8 Macpie Bhd 0.06 -7.69 635.2 -74.74 56.8

Pesona Metro Holdings Bhd 0.250 11.110 2066.1 2.04 173.7 Berjaya Assets BHD 0.240 -7.69 106.0 -40.00 614.0

Lien Hoe Corp BHD 0.355 10.94 244.8 36.54 118 SMRT Holdings Bhd 0.125 -7.41 1363.3 -3.85 55.7

Paos Holdings BHD 0.56 10.89 22005.3 77.78 101.5 Avillion BHD 0.125 -7.41 8379.6 92.31 118.3

Data as compiled on Aug 3, 2021 Source: Bloomberg Data as compiled on Aug 3, 2021 Source: Bloomberg

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

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

Kuala Lumpur Kepong Bhd 19.3 0.64 598.8 -18.5 20810.7 Kesm Industries Bhd 13.340 -0.640 100.4 -1.77 573.8

Nestle Malaysia Bhd 133.7 0.4 58 -3.74 31352.7 Fraser & Neave Holdings Bhd 24.380 -0.420 130.3 -24.00 8942.1

ViTrox Corp Bhd 19.98 0.36 357.5 35.92 9434.8 Heineken Malaysia Bhd 22.22 -0.3 7.7 -3.48 6712.6

Unisem M Bhd 8.9 0.3 5231.8 44.01 7178.2 Hartalega Holdings Bhd 6.800 -0.230 23965.2 -43.99 23238.7

Hong Leong Financial Group 17.3 0.28 242 -4.21 19812.7 Yinson Holdings BHD 4.610 -0.180 1378.0 -19.83 4910.5

Genetec Technology Bhd 23 0.24 851.8 1229.48 1169.8 Ajinomoto Malaysia Bhd 15.660 -0.140 0.4 -2.25 952.1

Petronas Gas Bhd 15.72 0.24 833.6 -8.21 31105.7 Petronas Dagangan Bhd 18.46 -0.14 143.1 -13.74 18339.2

Malaysian Pacific Industries 45.8 0.24 167.2 76.43 9109.5 Riverview Rubber Estates BHD 2.870 -0.130 7.0 -5.33 186.1

ATA IMS Bhd 2.91 0.21 5286.4 22.27 3500.3 Computer Forms Malaysia Bhd 4.210 -0.130 13.7 86.28 172.6

Hong Leong Bank Bhd 18.2 0.18 565.9 0 39452.5 British American Tobacco M’sia 14.540 -0.120 182.4 3.27 4151.6

TAFI Industries Bhd 1.77 0.16 14659.9 193.56 219.4 BIG Industries Bhd 1.360 -0.100 7812.3 198.90 71.9

Greatech Technology Bhd 6.78 0.15 4570.5 49.01 8488.6 Eurospan Holdings BHD 1.190 -0.100 277.6 96.69 52.9

PIE Industrial BHD 3.21 0.15 1506.4 33.85 1232.8 UWC BHD 5.870 -0.100 3934.4 19.80 6460.7

PJBUMI Bhd 0.5 0.14 14454.2 78.57 41 Top Glove Corp Bhd 3.820 -0.100 23558.2 -36.84 30577.6

BP Plastics Holding Bhd 1.88 0.13 1294.5 30.49 352.8 Kossan Rubber Industries 3.240 -0.090 8831.6 -26.42 8267.2

Malaysia Airports Holdings 5.84 0.13 967.9 -1.35 9689.7 AME Elite Consortium Bhd 2.540 -0.080 458.4 3.67 1084.9

Microlink Solutions Bhd 2.63 0.13 637.1 18.47 637.2 Allianz Malaysia Bhd 12.680 -0.080 47.6 -14.21 2250.8

JcbNext Bhd 1.6 0.12 127.8 14.29 211.4 Ralco Corp BHD 1.100 -0.080 65.9 23.60 55.9

Sam Engineering & Equipment 10.8 0.12 962 46.54 1461.8 Favelle Favco Bhd 2.160 -0.070 108.1 -1.37 483.7

Hengyuan Refining Co Bhd 4.22 0.11 425.2 -29.55 1266 Hwa Tai Industries BHD 1.03 -0.070 9943.4 151.22 77.1

Data as compiled on Aug 3, 2021 Source: Bloomberg Data as compiled on Aug 3, 2021 Source: Bloomberg