GOVT, OPPOSITION AGREE NEW MOU NOT NEEDED, SAYS PM p17
T H U R S DAY, J U LY 2 8 , 2 0 2 2 w w w. t h e e d g e m a r k e t s. c o m
ISSUE 417/2022
CEOMorningBrief
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WORLD: Wuhan locks down one million residents in echo of pandemic’s start p22
Google results avoid disaster, with search ads topping Wall Street targets p27
Contrasting views REUTERS
on Malaysia’s
growth prospects
IMF cuts 2022 GDP forecast to 5.1%
but S&P Global says 7% is likely
Report on Page 3.
Former AG Tommy Thomas explains
the Sulu claim Report on Pages 20 & 21.
thursday juLY 28, 2022 2 TheEdge CEO morning brief
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SC chairman: Opportunities in bond,
sukuk market despite rising interest
rate environment
KUALA LUMPUR (July 27): There are by syafiqah salim “We expect gross issuance of corporate
opportunities in the Malaysian bond and theedgemarkets.com bonds and sukuk to remain healthy, with
sukuk market despite the rising interest RM110 billion to RM120 billion to be
rate environment, according to Securities to preserving market confidence,” said raised in 2022.
Commission Malaysia chairman Datuk Awang.
Seri Dr Awang Adek Hussin. “The growth of this market segment
He said the SC believes credit rating will be underpinned by Malaysia’s strong
Bonds and sukuk are a good option agencies can play a much bigger role do- sovereign ratings, well-developed corporate
for investors in times of uncertainty as mestically and regionally. bond infrastructure, experienced market
they offer diversification benefits, are rel- professionals, and a conducive regulatory
atively safe investments and offer consist- “Their in-depth experience in Islamic environment.
ent income flows, the chairman said in ratings can be used to enhance the rat-
a keynote address at the MARC virtual ings methodology for ESG (environmen- “Another positive development is FTSE
Malaysian Bond & Sukuk Conference: tal, social and governance) and sustaina- Russell’s removal of Malaysia from its
Thriving Through Adversity on Wednes- ble development issuances. There is also World Government Bond Index (WGBI)
day (July 27). potential to establish regional collabora- watchlist. This is crucial for the market
tion and footprints in this area. This will to be accessible to a wide spectrum of in-
According to him, the local bonds and entail continued efforts by rating agencies vestors. It also preserves Malaysia’s track
sukuk are also expected to play a major to enhance resources, capabilities, as well record given we have been a component
role in the country’s economic recovery as innovate their products and services.” of WGBI since 2007,” he said.
and growth in the medium term, and this Gross issuance of corporate bonds
includes infrastructure projects identified and sukuk to remain healthy, between Currently, only 12% of outstanding
under the 12th Malaysia Plan. RM110 bil to RM120 bil bonds and sukuk are foreign currency
Awang said the domestic bond and sukuk denominated.
“Under our Capital Market Master- market has demonstrated its resilience
plan 3, a priority area is to facilitate mar- in the face of past challenges, and was a Issuers stand to gain by borrowing in
ket access for small and mid-sized issuers. source of stability for the country’s broader ringgit, as it reduces their vulnerability to
The corporate bond and sukuk market is financial system. volatile exchange rates, and therefore, cor-
currently dominated by large issuers. It porates should capitalise now before their
needs to be inclusive by widening the credit funding costs increase, suggested Awang.
spectrum beyond the triple-A (AAA) and
double-A (AA) rating bands, thus enabling As at end of June 2022, Malaysia’s out-
smaller companies to tap the market.This standing sukuk represented 39% of global
will increase the variety of investment prod- outstanding sukuk, making Malaysia the
ucts and yields, as well as provide opportu- world’s largest sukuk market, ahead of Sau-
nities for credit rating agencies to broaden di Arabia and Indonesia.
their service offerings.
Malaysia is also a regional leader in sus-
“On this point I would like to empha- tainable and responsible investment (SRI)
sise the vital role of independent assess- sukuk. As of November 2021, Malaysia
ments by domestic rating agencies such accounted for 56% of SRI sukuk issuance
as Malaysian Rating Corporation Bhd within the ASEAN-6 countries.
(MARC). Their in-depth analysis and Read also: SC stresses importance of
diligent monitoring help investors make financial education, planning amid
sound investment decisions, in addition current environment
thursday juLY 28, 2022 3 TheEdge CEO morning brief
home
Contrasting view on
Malaysia’s growth prospects
IMF cuts 2022 GDP forecast to 5.1% but S&P Global says 7% is likely
KUALA LUMPUR (July 27): Opinions by Chester Tay & Syafiqah Salim “Positive economic growth in the
between economists at the international theedgemarkets.com Asia-Pacific region is helping to support
lender of last resort and a global finan- global economic expansion in 2022. Main-
cial data giant are divided over Malaysia’s only exacerbate them,” it said. land China is showing a gradual rebound
growth prospects for this year. The IMF opined that targeted fiscal after lockdowns in the second quarter of
2022 and Asia-Pacific’s emerging markets
The International Monetary Fund support can help cushion the impact on are achieving solid growth.
(IMF) has cut its year-on-year gross do- the most vulnerable, but with government
mestic product (GDP) growth forecast for budgets stretched by the Covid-19 pan- “In advanced countries, household fi-
Malaysia to 5.1% in 2022 — down from demic and the need for a disinflationary nances are generally in good shape, thanks
5.6% previously — as it warns of further overall macroeconomic policy stance, such to accumulated savings and asset appreci-
downside risks for the global economy. policies will need to be offset by increased ation in 2020–2021. In a cycle dominated
taxes or lower government spending. by consumer spending, households are posi-
The IMF’s latest forecast is lower than tioned to drive the global expansion forward,
Bank Negara Malaysia (BNM)’s project- “Tighter monetary conditions will also despite headwinds from rising world inflation
ed GDP growth range of 5.3%-6.3% for affect financial stability, requiring judicious and surging energy prices,” he explained.
2022. use of macroprudential tools, and making
reforms to debt resolution frameworks all Gradual path towards normalising
In a stark contrast, S&P Global Mar- the more necessary,” it said. monetary policy
ket Intelligence is projecting a strong pick Rajiv further said that BNM is expected to
up in the country’s economic growth of “Policies to address specific impacts embark on a gradual path to normalise its
7% this year — an upward revision from on energy and food prices should focus monetary policy settings by further with-
6.1% previously. on those most affected without distorting drawing the degree of monetary accommo-
prices,” it added. dation as the economic recovery continues.
S&P Global Market Intelligence’s bull-
ish view on the local economy is mainly Rebound in local demand He was responding to a question on
due to the strengthening domestic demand, Meanwhile, S&P Global Market Intel- whether Malaysia will see another rate hike
strong exports, as well as the reopening of ligence chief economist for Asia-Pacific soon, as the US Federal Reserve is consid-
international borders. Rajiv Biswas highlighted that the Ma- ering another rate hike to curb inflation
laysian economy had staged a recovery due to the slowdown in the economy.
Nevertheless, in its latest World Eco- in the first half of the year, after a sig-
nomic Outlook Update published on nificant economic disruption due to the “The US and EU [European Union]
Tuesday (July 26), the IMF insisted that Covid-19 waves. economies are showing weakening growth
the risks to global economic outlook are momentum, with the US facing the risk
“overwhelmingly tilted to the downside. “The rebound in domestic demand, of a technical recession.
strong exports and reopening of interna-
This has taken into consideration risks tional borders have helped to support eco- “Worldwide, the transition from pan-
arising from the Russia-Ukraine war, infla- nomic growth, with GDP growth forecast demic to endemic for Covid-19 is enabling
tion globally, the tight labour market and to be around 7% in 2022,” said Rajiv in
monetary policies, potential debt distress response to theedgemarkets.com’s queries improving growth in travel, tourism,
in emerging markets, the property sector on Wednesday (July 27). and other consumer service sectors
crisis in China and geopolitical fragmen- that were hit hard during the 2020
tation, which could impede global trade Although global economic growth is recession,” he said.
and cooperation. expected to moderate, a global reces-
sion is not currently projected in the “Although BNM has already
With increasing prices continuing to baseline scenario for 2022, Rajiv said. tightened monetary policy by sev-
squeeze living standards worldwide, the eral small steps, the pace of policy
IMF said taming inflation should be the Global real GDP growth is expect- tightening has been gradual since
first priority for policymakers. ed to slow to 2.7% in 2022 and 2.6% inflation pressures are more con-
in 2023, the economist noted. strained in Malaysia,” he added.
“Tighter monetary policy will inevitably
have real economic costs, but a delay will
thursday juLY 28, 2022 4 TheEdge CEO morning brief
home
KUALA LUMPUR (July 27): Local cor- Expect rising Bank Negara Malaysia has twice raised
porate bond yields are expected to resume corporate bond the overnight policy rate (OPR) to 2.25%
an uptrend in the coming months, but will yields in coming currently, albeit with a narrowing gap with
subsequently head south as recessionary the Fed Funds Rate (FFR) which has con-
pressures come into play, said Malaysian months, says tributed to the bond sell-off.
Rating Corp Bhd (MARC) chief econo- economist
mist Firdaos Rosli. However, Malaysia’s real interest rate is
by adam aziz still negative suggesting an employer policy
Moreover the outlook for corporate theedgemarkets.com space for BNM to increase the OPR, which
earnings is clouded by rising inflation, Firdaos sees settling at 2.75% by year end.
which will perhaps impede consumer con-
sumption growth as well, Firdaos said at Contrary to net foreign inflow of RM6.1
the MARC Malaysian Bond & Sukuk 2022 billion in Malaysian equities year-to-date,
virtual conference. the local bond market recorded net foreign
outflow of RM3.23 billion, compared with
“Growth headwinds abound in net foreign inflow of RM24.5 billion in
2H2022. Monetary policy tightening at- 1H2021, on the back of monetary policy
tracts here-and-now volatility, exacerbat- tightening and global sentiments.
ed by concerns about a global economic
slowdown. Firdaos also noted one trend in the capi-
tal market. “In recent years, foreign inflows
“Expect the unexpected when global into the Malaysian capital markets rarely
bond yields continue to rise, but slower, moved in the same direction.
while the yield curve flattening persists,”
he said. “But when they did, it was never north-
ward.”
(July 27): Indonesian and Malaysian bonds JPMorgan turns At least part of the losses in Indonesian
are attractive as markets refocus on eco- positive on and Malaysian debt markets have been
nomic fundamentals following the selloff in driven by foreign outflows. Global funds
emerging-market debt andTreasuries, ac- Indonesian and offloaded a net US$7.75 billion of Indone-
cording to JPMorgan Asset Management. Malaysian bonds sian debt this year through July 22, while
after global selloff they cut holdings in Malaysia by US$570
Bonds from the two Asian nations will million in the second quarter, according
benefit from their commodity exports, by Matthew Burgess to data compiled by Bloomberg.
strong external balance sheets and infla- Bloomberg
tion that is relatively contained, said Ju- Tame inflation
lio Callegari, lead portfolio manager for Indonesia’s government bonds have Indonesia’s annual inflation rate acceler-
Asia local rates and foreign exchange at handed investors a loss of 6.4% this year, ated to a five-year high 4.35% last month,
the money manager. while Malaysia’s have declined 7%, ac- compared with just 1.87% in December.
cording to data compiled by Bloomberg. At the same time, the core gauge was just
“Any selloff from here is actually a good That’s still better than the performance 2.87%, holding below the midpoint of the
opportunity to buy duration in Indonesia,” of USTreasuries, which have fallen 8.2%. central bank’s 2%-to-4% target range for
Hong Kong-based Callegari said. “This headline inflation. In contrast, the US con-
is true too to some extent in Malaysia.” sumer-price index surged to 9.1% in June.
JPMorgan Asset shifted to a slightly Indonesia’s “relatively tamed inflation”
overweight position on Indonesian debt at just above the central bank’s target ap-
this month on the view that local yields are pears anchored compared with the US and
unlikely to go much higher even if those on Europe, which are batting the fastest rise in
Treasuries keep climbing, he said. consumer costs in decades, Callegari said.
The current-account surplus due to higher
commodity prices are also offering some
resilience to the nation’s currency, he said.
Indonesia’s bonds are also becoming
less vulnerable to outflows as the propor-
tion held by overseas investors has been
declining, Callegari said.
Global funds owned 15% of Indonesia’s
sovereign debt as of July 22, down from as
high as 39% at the start of 2020, accord-
ing to data compiled by Bloomberg using
figures from Indonesia’s finance ministry.
With Bank Indonesia likely to make its
first rate hike by September and a possibly
stronger inversion of the US yield curve
“our bias is to reengage”, Callegari said.
“Indonesia and Malaysia is where we ac-
tually are looking to be overweight.”
thursday juLY 28, 2022 5 TheEdge CEO morning brief
home
IGB REIT’s consisting of realised profit of RM83.5 CIMB
2Q net property million and the non-cash adjustments Niaga’s 1H22
income jumps 67% arising mainly from manager fee pay- consolidated
able in units of RM6 million,” it said. profit up 20%
by Syafiqah Salim
theedgemarkets.com For the six months ended June by Hailey Chung
30, the REIT’s NPI soared 70% to theedgemarkets.com
KUALA LUMPUR (July 27): IGB Real RM213.42 million from RM125.52 mil-
Estate Investment Trust saw its net prop- lion a year ago, while six-month revenue KUALA LUMPUR (July 27): CIMB Group
erty income (NPI) for the second quar- climbed 45.1% to RM267.57 million Holdings Bhd’s 92.5%-owned PT CIMB Nia-
ter ended June 30, 2022 (2QFY22) jump from RM184.36 million. gaTbk announced its unaudited consolidated
67.4% to RM105.715 million, as com- net profit for the first half ended June 30, 2022
pared with RM63.14 million a year earlier. Nevertheless, IGB REIT acknowl- (1H22), leaped 20.4% to 2.57 trillion Indo-
edged that the Malaysian retail industry nesian rupiah (about RM763.68 million), up
The investment trust, which owns is still facing several major headwinds from 2.13 trillion Indonesian rupiah a year ago.
the Mid Valley Megamall and The Gar- for the rest of 2022.
dens Mall, saw its revenue grow 57.5% According to its financial statement filed
to RM133.76 million in 2QFY22, up “The Russia-Ukraine conflict and with Bursa Malaysia onWednesday (July 27),
from RM84.92 million in the same pe- China’s Zero Covid-19 policy have CIMB Niaga’s earnings per share for 1H22
riod last year. contributed to global supply chain dis- was 101.65 Indonesian rupiah against the pre-
ruptions. Prices of basic necessities and vious year’s 85.54 Indonesian rupiah.
The higher earnings were mainly due to commodities have continued to rise.
the lower rental support provided to ten- It paid a total dividend of 2.35 trillion In-
ants in the quarter under review, arising “In addition, Bank Negara Malaysia donesian rupiah in 1H22, twice the amount
from the economic reopening and improv- has raised the Overnight Policy Rate compared with 1.1 trillion Indonesian rupi-
ing retail sales of tenants, IGB REIT told twice, so far: by 25 basis points (bps) to ah in 1H21.
Bursa Malaysia on Wednesday (July 27). 2.00% on May 11, and a further 25 bps
to 2.25% on July 6.The supply-driven In a separate statement, CIMB Niaga pres-
The REIT also declared an income inflation and interest rate hikes have af- ident director Lani Darmawan attributed the
distribution per unit (DPU) of 2.45 sen fected the purchasing power and lifestyle improved performance to strong loans or fi-
for 2QFY22 — comprising 2.43 sen tax- of Malaysians,” it said. nancing growth, improved fee income, strong
able and 0.02 sen non-taxable — payable cost controls and lower credit provision.
on Aug 29. Despite the developments, IGB
REIT stressed that it will stay resilient CIMB Niaga reported that its capital ad-
“The distributable income for the cur- and remains committed to bringing equacy ratio (CAR) and loan to deposit ratio
rent quarter amounted to RM89.8 million, about long-term value for its stake- (LDR) closed at 21.1% and 80.9%, respec-
holders. tively, as on June 30.
Year to date, IGB REIT’s share price Meanwhile, total assets stood at 311 tril-
had declined by five sen or 3% to close lion Indonesian rupiah as on June 30, which
at RM1.59 on Wednesday, giving it a it said is solidifying the bank’s position as
market capitalisation of RM5.69 billion. Indonesia’s second largest privately-owned
bank by total assets.
KUALA LUMPUR (July 27): Construc- Gagasan Nadi
tion group Gagasan Nadi Cergas Bhd’s Cergas bags It added that total deposits reached 232
wholly-owned subsidiary Nadi Cergas RM189.8 mil trillion Indonesian rupiah with the current
Sdn Bhd has secured a RM189.8 million account and savings account (CASA) ratio
contract from Paramount Property De- contract rising to 65.7%.
velopment Sdn Bhd, a unit of Paramount
Corporation Bhd, to build affordable high- Bernama “Current account and savings account bal-
rise residences in Kemuning Utama, Shah ances grew by 16.9% year-on-year (y-o-y) and
Alam. the future. Our partnership with Par- 7.7% y-o-y respectively, driven largely by the
amount allows us to assist in realising bank’s continuous commitment to deepening
Under the contract, Nadi Cergas will this goal. customer relationships and enhancing user
undertake the turnkey contract of design- experience through its digital touchpoints,”
ing and developing 929 residential units “This is part of Gagasan Nadi Cer- CIMB Niaga said.
in Kemuning Utama township in Shah gas’ delivery of nearly 10,000 affordable
Alam, Selangor. houses across Greater KlangValley over Total loans stood at 189.7 trillion Indo-
the next five years,” he said in a state- nesian rupiah, contributed mainly from the
Gagasan Nadi Cergas Group Manag- ment onWednesday (July 27). 15.5% y-o-y growth in corporate banking and
ing DirectorWan AzmanWan Kamal said 13.8% y-o-y growth in consumer banking,
the group has made positive progress in Prior to this contract, Gagasan Nadi the bank said.
the operations of its property and con- Cergas had been tasked by Paramount
struction segments. group to build a high-rise affordable “Mortgages grew by 8.5% y-o-y, while
housing project in Greenwoods Salak auto loans rose 51.7% y-o-y, including the
“The affordable housing agenda, es- Perdana, Sepang, Selangor. contributions from the bank’s subsidiary, PT
pecially in high-growth urban locations, CIMB Niaga Auto Finance.
remains clearly on track, as the private and
public sector play their respective roles to Read the full story
safeguard the welfare of the people amid
Malaysia’s expected upward trajectory in
thursday juLY 28, 2022 6 TheEdge CEO morning brief
Chanel
With a series of new releases in the J12 collection, the maison continues
to reaffirm its legitimacy as a watchmaker
by Anandhi Gopinath movement is constructed in a series of cir- obsession for me and a technical challenge
cular bridges in black.The brilliance of the that the Chanel manufacture teams executed
Since this year’s outing at Watches diamonds is echoed by extreme finesse of magnificently and gave life to the new J12
and Wonders was its first after leav- the bevelling and the exceptional finishes of Diamond Tourbillon.
ing Baselworld, Chanel decided that the movement.The tourbillon cage and the
it would debut its most impressive hands are also set with diamonds. To celebrate the marriage of the J12 with
model in its iconic J12 family of watches yet this new calibre, Chastaingt designed two
— a tourbillon on top of which a multi-fac- “Setting a diamond at the centre of a models in the J12 DiamondTourbillon fam-
eted diamond dances elegantly, keeping time tourbillon was a creative decision and its ily — one in glossy black ceramic with the
with the movement of this hypnotic compli- achievement was a technical tour de force,” bezel embellished with baguette-cut dia-
cation.This stunning timepiece ticks to the Chastaingt adds. “This creation is a perfect monds, the other entirely in matt black ce-
beat set by the Calibre 5, an in-house man- illustration of the exceptional savoir faire that ramic.The two look as rare and exclusive as
ually-wound flying tourbillon movement. enables our watchmakers to challenge con- the other, both limited to just 55 pieces each.
ventional codes and make the most daring The Calibre 5 is presented in an elegantly
“Our fifth in-house movement, the Cal- creative dreams come true. Placing a dia- proportioned 38mm case that’s water-re-
ibre 5, was conceived and designed in Par- mond of this size on a tourbillon was an sistant to 50m; and since its power reserve
is, then developed and assembled by our is approximately 42 hours, the watch only
watchmakers at the Chanel manufacture needs to be wound every other day or so.
at La Chaux-de-Fonds,” shares Arnaud
Chastaingt, director of the maison’s watch- Chanel is a house of artistic creation
making creation studio.“I wanted to endow and its watchmaking is no exception. The
the J12 watch with a diamond. Set at the cen- freedom of its creative expression and the
tre of the tourbillon, the solitaire diamond excellence of its savoir faire are inseparable
follows the mechanism of the movement, from each other.This is fundamental given
giving time a rhythm that is precious and that every creation, in watchmaking and fine
meditative, almost hypnotic. For this stone, watchmaking, combines these two basic es-
we created a bespoke 65-facet cut: a unique sentials. In 1987, Chanel entered the world
cut for a unique watch, and one that I con- of horlogerie with the freedom that charac-
tinue to find fascinating and inspiring.” terises the maison by unveiling the Première
watch.Thirty-five years later, this artistic cre-
Faithful to the graphic identity of Chanel ativity remains at the heart of all the brand
Fine Watchmaking, the architecture of the does, as evidenced by its new watches.
thursday juLY 28, 2022 7 TheEdge CEO morning brief
Boyfriend in red
In 2018, the BOY·FRIEND was equipped with of lipstick to draw attention to a smile.
a skeleton movement developed within the “I love the boldness of a fine watchmaking
Chanel manufacture — architectural, modern
and pared back, visible from both front and movement made up in red, the sensuality
back, and revealed in its full finesse by the of the marriage of beige gold and ruby, the
transparent play of its interlocking circles. It assertiveness of a glossy red bracelet on the
was fitted with the wrist, the exquisite elegance of the colour of
Calibre 3, which displays a radical elegance the crystal sapphire. With red, there are no
and a flawless mastery of the codes of grey areas. Its elegance is uncompromising,”
masculinity. says Arnaud Chastaingt, director of the Chanel
watchmaking creation studio.
In 2022, the BOY·FRIEND Skeleton Red
Edition and the BOY·FRIEND Skeleton X-Ray Still endowed with the Calibre 3, the
Red Edition watches emerge as new haute watches present the appearance of a graphic
horlogerie creations imbued with authority fragment of lace embroidered with bridges
and inimitable flair. The BOY·FRIEND and cogwheels, which offers subtle glimpses of
silhouette remains unchanged, but the accent the wrist beneath. The architectural aesthetic
on red, one of the maison’s signature colours, and the movement of the BOY·FRIEND
adds a note of contrast to the look. The red highlight the watch’s close affinity with the
embossed leather strap recalls the lining of codes of masculinity. This powerful duality
Chanel’s 2.55 handbag, while the red of the creates two new and exceptional pieces,
movement, in association with the powdered radical and elegant, in which the dividing line
beige gold shade, suggests the ultimate touch between the feminine and the masculine
grows ever more subtle.
Coco comes to life
This year, Mademoiselle Chanel and the J12 watch meet again in three J12, Coco’s silhouette appears in the form of a figurine entwined
exceptional creations that celebrate a mischievous, sweet version in white gold and black lacquer, topped off with a two-tone straw
of Gabrielle Bonheur “Coco” Chanel. The ultimate expression of the hat accentuated with a brilliant-cut diamond. Meanwhile, the J12
founder of the house, the Mademoiselle J12 collection is limited to just Gabrielle Calibre 3.1 watch is a homage to the iconic silhouette of Coco
55 pieces in each of the three lines, ensuring each piece is a collectible placed on the dial, dressed in black and wearing her beloved pearls. A
and a rare chance to truly wear a piece of Coco on one’s wrist. true keeper of time, Mademoiselle Chanel strikes a pose in a painting
within a precious frame composed of a white gold bezel set with
With the Mademoiselle J12 La Pausa, this new interpretation baguette-cut diamonds.
welcomes the silhouette of Coco dressed in Breton top and sailor
pants, inspired by a photograph taken in her garden at La Pausa, her The watches in the Mademoiselle J12 collection are crafted from
villa on the French Riviera. For the first time, the Mademoiselle J12 is Chanel’s proprietary black ceramic and white gold accents on the case
equipped with the Calibre 12.1, in an exclusive all-black version. and bezel. Each watch teems with wit and irreverence, channelling a bit
of her inimitably exuberant personality.
Clinging mischievously to the watch case of the Mademoiselle
thursday juLY 28, 2022 8 TheEdge CEO morning brief
home
(July 27): OMS Group Sdn Bhd, a Ma- Subsea cable firm vate funding rounds, there has been con-
laysia-based company that instals cable OMS weighing tinued interest from investors, according
underwater, is weighing a listing in Kuala US$300 mil IPO, to the statement.
Lumpur as soon as next year that could sources say
raise as much as US$300 million (about Subsea spending
RM1.34 billion), according to people by Elffie Chew Technology and telecommunications firms
with knowledge of the matter. Bloomberg are spending on ambitious undersea pro-
jects in Asia as increasing digitalisation in
The company is working with financial Deliberations are ongoing and the size the region sparks demand for infrastruc-
advisers on the planned first-time share as well as timing of the IPO could still ture. Last year, Alphabet Inc’s Google and
sale, said the people, who asked not to be change, the people said. Facebook Inc (now Meta Platforms Inc)
identified as the process is private. It is joined a new subsea cable system for 2024
seeking a valuation of over US$1 billion OMS is exploring an IPO in the region, dubbed Apricot, linking Japan, Singapore,
based on strong earnings growth and in- a company representative said in a state- Taiwan, Guam, the Philippines and In-
creased spending among telecommunica- ment responding to a query from Bloomberg donesia. Nippon Telegraph & Telephone
tions operators on digital infrastructure, News. Following the company’s recent pri- Corp will build a 10,000km cable link-
the people said. ing Japan to California, the company an-
nounced earlier this month.
OMS had asked banks to submit pro-
posals for the potential first-time share OMS Group, with offices in Malaysia,
sale, and was considering venues includ- Singapore and Indonesia, has done subsea
ing Australia, Hong Kong, Malaysia and cable installation and maintenance projects
Singapore for a listing, Bloomberg News for the past three decades, including the
reported in October. Papua New Guinea National Submarine
Fiber Cable Network and the South-East
Should the offering take place, it Japan Asia Japan Cable System 2, accord-
would give a boost to first-time share ing to its website.
sales in the Southeast Asian nation. At
US$300 million, the initial public offer- The company’s fleet includes CableVig-
ing (IPO) would be Malaysia’s biggest in ilance, a 5,448 gross tonnage cable-lay-
over a year, after MR DIY Group (M) ing and repair ship, which was launched
Bhd’s US$363 million listing in Octo- on Tuesday (July 26) in Dunkirk, France,
ber 2020, according to data compiled according to a LinkedIn post.
by Bloomberg.
KUALA LUMPUR (July 27): Bursa Malay- No major delays to funds for growth, with recovery from
sia Bhd does not foresee any major delays in in companies’ the impact brought about by the Covid-19
companies’ listing plans in 2022, despite a pandemic.
risk-off environment sparked by a hawkish IPO plans in 2022
US Federal Reserve (Fed) and external head- — Bursa “We are optimistic that the vibrancy
winds like the Ukraine-Russia war. and momentum of new IPOs on Bursa
by Niam Seet Wei will remain throughout 2022, particularly
Instead, it anticipates the local bourse Bernama in the key promoted areas of technology,
to see 37 initial public offerings (IPOs) in consumer, healthcare, halal and/or envi-
2022, against 30 in 2021, primarily driv- OnTuesday (July 26), UMediC Group ronmental, social and corporate govern-
en by a higher number of listings on the Bhd made a strong debut on the ACE Mar- ance-compliant businesses,” it added.
ACE Market following the reopening of ket at 50 sen per share — a 56.25% pre-
the economy. mium to its IPO price of 32 sen. Like most of its emerging-market peers,
Malaysia has been suffering from a persis-
“Unless an IPO is large enough to war- The medical device manufacturer’s tent sell-off in its equity market since the
rant an international offering, we do not counter closed at 44 sen, resulting in a Fed made its third interest rate hike in June
foresee any major delays in companies’ market capitalisation of RM164.52 million. this year, raising it by 75 basis points — the
listing plans, as there is ample liquidity most aggressive hike since 1994.
in our market to support purely domestic Moving forward, Bursa believes that do-
offerings,” Bursa told Bernama recently. mestic investors’ appetite for IPOs would Year to date, the benchmark FBM
remain strong for the rest of the year as KLCI had dropped 6.62% to close at
The exchange operator said that from demonstrated by the level of oversubscrip- 1,463.69 on Tuesday.
Jan 1 to July 13, the local bourse saw 20 tion for most IPOs.
new listings, raising about RM2.3 billion. However, the market bellwether had im-
It said businesses are expected to re- proved from its two-year low of 1,408.83
“The additional market capitalisation bound on pent-up demand following the on July 14.
contributed by the 20 companies listed Covid-19 pandemic, and the reopening of
was approximately RM7.3 billion (up to borders will encourage spending. Meanwhile, in its efforts to combat
July 13), and the IPO pipeline for the rest soaring inflation, the Fed is widely expect-
of the year remains strong,” it said. “Hence, we believe the outlook for IPOs ed to raise interest rates by 75 basis points
remains encouraging, as the equity capital to 2.25% to 2.50% in the two-day Federal
Based on the number of IPOs approved market provides companies with access Open Market Committee policy meeting,
and awaiting their listings and the number which ends on Wednesday.
of exposure draft prospectuses on both Read also: PLCs need to improve report-
Bursa and the Securities Commission Ma- ing on ESG practices, says Bursa CEO
laysia’s websites, at least five more listings
are expected to take place by year end.
thursday juLY 28, 2022 9 TheEdge CEO morning brief
home
Malaysia has Photos by Low Yen Yeing/The Edge “Regardless of the inflation threat, geo-
right ecosystem, political situation, (semiconductor) com-
Wong: Not just the ecosystem itself, but we have panies are putting the capital expenditure
talent to pull the right infrastructure, including our engineers, to build buildings and getting ready for the
investments into contractors and architects to build factories to increase in demand [for] semiconductors
semiconductor in the near future,”Wong elaborated.
international standards.
space Separately, Nomura Asset Management
Yap: The acceleration in digitalisation including Malaysia Sdn Bhd launched the Nomura
by Sulhi Khalid the rollout of 5G networks has intensified the Global Sharia Semiconductor Equity Fund
theedgemarkets.com on Wednesday to offer investors access to
need for greater connectivity, giving rise to the rapidly growing semiconductor sec-
KUALA LUMPUR (July 27): Malaysia an exponential surge in computing needs and tor driven by global digitalisation trends.
has the right ecosystem and talent to attract demand for semiconductor chips, which are
more investments in the semiconductor essential components of most electronic devices. The fund, which has a minimum ini-
space, according to the Malaysia Semi- tial investment of RM1,000 or US$1,000,
conductor Industry Association president In December last year, US chip giant will focus on quality companies with high
Datuk Seri Wong Siew Hai. Intel Corporation pledged US$7 billion growth potential, healthy profit margins
(approximately RM30 billion) in Penang and strong intellectual property, pricing
Speaking at a panel discussion here on to expand its advanced semiconductor power and balance sheets.
Wednesday (July 27),Wong said the coun- packaging technology.
try witnessed inflow in investment on sem- “We continue to innovate and offer in-
iconductors as Malaysia has built a strong Meanwhile, he also shared that the glob- vestors opportunities to invest in assets
base over the years. al semiconductor industry is expected to with strong potential for growth and long
grow 7.1% in the next five years. runways.
“Malaysian Investment Development
Authority (MIDA) has done a fantastic job “The acceleration in digitalisation in-
in attracting these semiconductor compa- cluding the rollout of 5G networks has in-
nies to invest in Malaysia. tensified the need for greater connectivity,
giving rise to an exponential surge in com-
“Not just the ecosystem itself, but we have puting needs and demand for semiconduc-
the right infrastructure, including our en- tor chips, which are essential components
gineers, contractors and architects to build of most electronic devices.
factories to international standards,” he said.
“The timely launch of the fund enables
us to capitalise on such trends and pro-
vide investors access to high-quality global
semiconductor companies while achiev-
ing portfolio diversification,” according
to Nomura Asset Management Malaysia
managing director LeslieYap.
KUALA LUMPUR (July 27): InvestKL InvestKL draws dronetech, data solutions and marke-
has attracted RM1.68 billion worth of in- RM1.68 bil new tingtech, it added.
vestments in the first half of 2022 (1H22)
which created 1,919 high-skilled execu- investments Moving forward, Azmi said Malaysia
tive job opportunities, the agency under in 1H22 needs to nurture more professionals such
the Ministry of International Trade and as big data engineers, cybersecurity ex-
Industry (MITI) said. by Hailey Chung perts and accountants to meet growing
theedgemarkets.com investors’ demand.
In a statement onWednesday (July 27),
it said that its business hub Greater Kuala “These major trade deals hold excel- He believes this will support the coun-
Lumpur (GKL) has led the establishment lent promise as they will make Malaysia try’s objective in attracting high-value,
of six multinational corporations (MNCs) more attractive for companies seeking to high-technology and high-growth com-
from the United States, United Kingdom, diversify their supply chains and widen panies, in line with the National Invest-
China, and Australia, covering various in- market access for goods and services as ment Aspiration (NIA) aimed at balancing
dustries such as food, technology, software well as digital products,” Azmi said. economic development with environmental
development and pharmaceuticals. sustainability.
InvestKL said the GKL Live Lab pro-
InvestKL chief executive officer Mu- gramme launched in April 2021, aimed Besides that, he stated that greater em-
hammad Azmi Zulkifli said the agency at strengthening Greater KL as an inno- phasis must be given to the environmen-
will continue to secure more investments vation and ideation smart city, has signed tal, social and governance (ESG) agenda
by taking advantage of new opportunities up two companies out of three targeted to further enhance the readiness of the
available from the free trade agreements for 2022. country’s ecosystem and infrastructure in
Malaysia has become a part of. embracing sustainable development.
The programme has also secured key
“The Regional Comprehensive Eco- projects covering edutech, healthtech, “We must keep ourselves at the fore-
nomic Partnership (RCEP) just came into front of ESG while capturing emerging
force earlier this year, while Malaysia is opportunities in the shift towards a green-
aiming to ratify the Comprehensive and er planet. Renewable energy offers huge
Progressive Agreement for Trans-Pacific potential, and Malaysia needs to acceler-
Partnership (CPTPP) in 2022. ate on this front to remain competitive,”
Azmi said.
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KUALA LUMPUR (July 27): Tenaga TNB: Power for about 10% of Peninsular Malaysia’s
Nasional Bhd (TNB) said on Wednesday outage due to total electricity demand.
(July 27) that the goverment-controlled
utility had at 3.02pm fully restored elec- Yong Peng In a later statement,TNB president and
tricity supply in areas across Peninsular substation CEO Datuk Baharin Din assured that Ma-
Malaysia affected by a power outage since equipment laysia’s electricity supply is stable, as dis-
12.39pm, due to a damaged equipment damage ruptions are able to be addressed in an
within the main power intake substation immediate manner.
inYong Peng, Johor. by Surin Murugiah & Hailey Chung
theedgemarkets.com Some areas affected by the blackout saw
In several Facebook posts, TNB said supply normalise as early as 20 minutes
areas affected by the power outage in- after the cut off, Baharin said.
cluded Petaling Jaya, Cheras and Bangi
in the Klang Valley, besides Bayan Lepas “Our capabilities in restoring supply
and Seberang Jaya in Penang, and Pan- today follow the huge continuous invest-
chor in Johor. ments byTNB to upgrade the grid with the
support of the Energy Commission (EC)
The company added that Bandar Inde- and the Ministry of Energy and Natural
ra Mahkota in Pahang was also affected. Resources,” Baharin said.
“We apologise for the constraints/dif- He expressed apology to affected elec-
ficulties experienced by users during the tricity users, and said that TNB will per-
[electricity] supply disruption,”TNB said. form detailed investigations with the EC
to undertake preventive and improvement
“[Power supply in] most of the affected measures.
areas was successfully restored gradually
in as early as 20 minutes [after the outage The technical issues at the Yong Peng
started] as a result of the TNB technical site did not inform any fire, Baharin add-
team’s continuous effort,” the company ed, and that the facility is fully back in
explained. operations.
TNB said the power outage resulted in On Bursa Malaysia, TNB closed un-
a 2.2GW electricty load loss, accounting changed at RM8.03 onWednesday, giving
it a market value of about RM46.17 billion.
PUTRAJAYA (July 27): The Public Sec- LPPSA targets together to finance their dream home,” he
tor Housing Financing Authority (LPPSA) issuing RM10 said.
aims to issue housing loan financing of bil housing loan
RM10 billion this year to approximately financing this Meanwhile, Khairul said Bank Mua-
40,000 new borrowers. malat has allocated as much as RM300
year million to provide financing under the Sha-
LPPSA Chief Executive Officer Mohd riah-compliant concept of “Tawarruq” for
Farid Nawawi said for the first six months Bernama a period of one year under the initiative.
of this year, a total of RM6 billion in hous-
ing loan financing had been issued to to enable civil servants to finance housing Under the MoU, qualified public sector
18,168 borrowers. loans beyond the stipulated qualifications. employees and immediate family members
can apply for financing from LPPSA and
“We are confident that the target of “Sometimes when civil servants want Bank Muamalat who agree to be the hold-
RM10 billion in housing loan financing to buy a house, their qualifications are not er of the “Second Mortgage” to settle the
this year can be achieved based on the cur- enough, so with rules like these, the qual- differential sum.
rent trend, where since we have been op- ifications will be easier for civil servants
erating in 2016, the amount of financing because it allows not only civil servants “Through this ‘Second Mortgage’ hous-
issued has not run between RM11 billion but their spouses and their children to live ing financing, the bank will provide addi-
and RM12 billion. tional housing financing for the purchase of
a dream home to complete the housing fi-
“We have that data, so we have a projec- nancing that has been approved by LPPSA.
tion for how much (target) funding each
year,” he told the media after the mem- “Through this MoU, Bank Muamalat
orandum of understanding (MoU) sign- offers a financing margin of up to 90% to
ing ceremony between LPPSA and Bank potential home buyers, and in addition to
Muamalat Malaysia Bhd here onWednes- related costs such as the Mortgage Lev-
day (July 27). el Term Takaful (MRTT), legal fees and
Long-Term Home OwnerTakaful (LTHT)
The MoU was signed by LPPSA Chief can be financed through this housing fi-
Operating Officer Zuwardi Zubir and Mua- nancing,” he said.
malat Bank Retail Banking Director Zury
Rahimee Zainal Abiden, witnessed by Khairul said among those who are eli-
Mohd Farid and Bank Muamalat Presi- gible to apply under the initiative are per-
dent and Chief Executive Officer Khairul manent officers who are currently serving
Kamarudin. and those who have served for at least a year
and have been confirmed in their position.
Regarding the MoU, Mohd Farid said Read also: Unemployed graduates down
Bank Muamalat is the third bank after Bank to 4.1% in 2021
Islam Malaysia Bhd and Bank Simpanan
Nasional, which has partnered with LPPSA
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Producer Price and fishing sector remained a slower dou- Putrajaya
Index eased to ble-digit increase of 18.1% as compared needs a
10.9% in June to 29.8% in the same period a year ago.
long-term plan
by Surin Murugiah He said apart from being driven by per- to address
theedgemarkets.com ennial crops index, fishing and logging in- chicken
dices also contributed to the increase in
KUALA LUMPUR (July 27):The rise in this sector during June 2022. shortage, says
Malaysia’s Producer Price Index (PPI), consumers
which measures the prices of goods at fac- “In addition, indices of growing of association
tory gate, eased to 10.9% in June 2022 non-perennial crops and animal produc-
from 11.2% in May 2022, said the De- tion increased 7.5% and 6.9% respectively. by Surin Murugiah
partment of Statistics Malaysia (DOSM). theedgemarkets.com
“The increase in both indices were con-
In a statement onWednesday (July 27), tributed by the [increase] in the indices of KUALA LUMPUR (July 27):The
DOSM chief statistician Datuk Seri Dr tomato (34.9%), round cabbage (22.8%), government should focus on ways
Mohd Uzir Mahidin said all sectors re- aubergines (19.2%), hen’s eggs (9.7%) and to reduce poultry production costs,
corded a double-digit increase except for chicken (8%),” he said. rather than trying to import frozen
utility sectors. chicken to ensure sufficient chicken
Mohd Uzir said the mining sector re- supply in the country.
He said the manufacturing sector, which corded an increase of 17.5% in June 2022
is the highest weight in the PPI (81.6%), as opposed to 20.6% in May 2022. In a statement on Wednesday
posted a 10% increase in June 2022. (July 27), Consumers Association of
He said the increase was mainly driv- Penang (CAP) president Mohideen
“Although the sub-sectors from this en by growth in natural gas (43.4%) and Abdul Kader said there has been
sector recorded a two-digit increase, the crude oil (12.7%) indices. much research conducted by local
magnitude of increase has slowed down. universities on animal feed using oil
Manufacture of coke and refined petro- In terms of utility indices, an increase palm waste for many years.
leum products recorded 22.3% in June of 2.1% was recorded in water supply in-
2022, down from 22.9% in May 2022. dex, while electricity and gas supply index “It is claimed that feed costs take
decreased 0.2%, he said. up about 70% of the production
“Similarly, manufacture of food prod- costs of chicken and eggs.
ucts posted a slower increase to 18.6% in Meanwhile, commenting on the PPI
June 2022 from 19.3% recorded in the local production by stage of processing, “If it is then the government
previous month. Mohd Uzir said the index of crude mate- should turn to academics and in-
rials for further processing increased at a dustry experts to identify how they
“Manufacture of chemicals and chemi- slower rate of 16.9% in June 2022 com- can contribute to solving the prob-
cal products also eased from 11.4% in May pared to 17.3% in May 2022. lem,” he said.
2022 to 10.5% in June 2022.
He said the increase was contributed by Mohideen pointed out that the
“In addition, 16 other sub-sectors post- indices of non-food materials (19.2%), and Selangor state government an-
ed a lower increase in the range of between foodstuffs and feedstuffs (4.8%). nounced that it would be adopt-
0.4% and 9.5%. On the other hand, two ing a new method researched by
sub-sectors recorded a decline and one Similarly, index of intermediate mate- Universiti Kebangsaan Malaysia
sub-sector remained unchanged,” he said. rials, supplies and components increased two years ago to provide alterna-
13% in June 2022, slightly lower than tive animal feed production.
Mohd Uzir added that even though the 13.5% recorded in May 2022.
price of crude palm oil experienced a slight He added it was said to lower
decrease to RM6,106 per tonne in June The increase was driven by an increase chicken feed production cost to
2022 against RM6,873 per tonne a month in indices of processed fuel and lubricants 70 sen compared to the current
before, the index for agriculture, forestry (18.0%), materials and components for RM1.70.
manufacturing (14.1%), and supplies
(6.3%). “This would mean a cost reduc-
tion of about 60%.The method for
On the other hand, finished goods index feed production has been imple-
registered a higher increase in June 2022 mented in Kedah.
with 1.6% (May 2022: 1%), attributed by
the increase in finished consumer foods “It does not make sense why the
(6.7%) index. government must consider import-
ing frozen chicken when it is sup-
posed to identify and develop long-
term solutions since the country is
in dire need to improve its food se-
curity,” he said.
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OM Holdings’ As at June 30, 2022, 12 out of the plant’s Gadang slips into
Sarawak 16 furnaces were in operation. the red in 4Q
smelting plant OMH, which is also listed on the Aus- by Chester Tay
records higher tralian Securities Exchange, said it has theedgemarkets.com
output in Q2 modified and converted two of its four idled
ferrosilicon furnaces to produce manga- KUALA LUMPUR (July 27): Gadang
Bernama nese alloys. Holdings Bhd reported a net loss of
RM4.08 million in the fourth quarter end-
KUALA LUMPUR (July 27): OM Hold- “Hot commissioning and performance ed May 31, 2022 (4QFY22) from a net
ings Ltd’s (OMH) ferroalloy smelting plant testing for the two furnaces commenced profit of RM10.75 million a year ago, due
in Sarawak’s Samalaju Industrial Park pro- on June 27 and July 25 respectively, with to lower contribution from its construction
duced higher volumes for ferrosilicon, man- production currently ramping up,” it said. business after completion of major pro-
ganese alloys and manganese sinter ore in jects, while profit margins were weighed
the second quarter (Q2) of this year, com- OMH said upon full commercial pro- by higher costs in on-going projects.
pared with the first quarter. duction of the converted furnaces, the
Sarawak smelting operations will have an In a filing with Bursa Malaysia, Gadang
The Singapore-headquartered company annual production capacity of 333,000 to said revenue for 4QFY22 fell 9.3% year-
said it produced 35,004 tonnes of ferros- 400,000 tonnes of manganese alloys. on-year to RM138.18 million, down from
ilicon, 60,767 tonnes of manganese alloys RM152.35 million a year earlier.
and 30,446 tonnes of manganese sinter ore, The plant also has an annual produc-
representing a quarter-on-quarter increase tion capacity of about 120,000 to 126,000 Nevertheless, for the full FY22, the
of 3.2%, 0.4% and 18.7% respectively. tonnes for ferrosilicon and 250,000 tonnes group’s net profit jumped over three times
for sinter ore, the company added. to RM41.55 million from RM12.9 million,
“In terms of sales volume, the plant saw while revenue grew 13% to RM651.99
an increase of 23% sequentially for ferro- The remaining two idled furnaces are million from RM574.77 million in FY21.
silicon to 37,779 tonnes in Q2 2022 due currently undergoing conversion to pro-
mainly to delayed shipments at the end of duce silicon metal. Going forward, Gadang said it is “cau-
March 2022 being carried forward to the tiously optimistic” about registering posi-
quarter under review. “Barring any unforeseen circumstances, tive growth for FY23 barring any further
hot commissioning and testing works are unforeseen circumstances.
“Sales volume for manganese alloys, expected to commence in December 2022.
however, declined 9.5% to 52,172 tonnes Nonetheless, the group acknowledged
in Q2 2022, from the previous quarter,” “Upon completion of the conversion that the Government’s austerity drive
it said in a filing with Bursa Malaysia on works, the plant will have a design capaci- would likely impact growth prospects over
Wednesday (July 27). ty to produce 21,000 to 24,000 tonnes of the medium term.
silicon metal per year,” it said.
“Despite the foreseeable hurdles, the
Executive Chairman and Chief Exec- group aims to continue pursuing all pos-
utive Officer Low NgeeTong said the fur- sible opportunities to replenish its order
naces scheduled for major maintenance book, whilst continuously implementing
will be shut down in stages to minimise cost control strategies,” it said.
disruptions to ongoing operations.
Gadang said its construction division
“As current works are going according has an outstanding order book of RM1.05
to plan, our smelting production guidance billion, of which RM680 million of new
for the year remains unchanged,” he said. projects were secured in July this year.
KUALA LUMPUR (July 27): LBS Bina LBS achieves Read also:
Group Bhd has hit more than RM1 billion over RM1 bil First Selangor Plan involves projects,
in its year-to-date sales target, on track initiatives worth over RM212 bil —
to achieve its whole year sales target of salesYTD Selangor MB
RM1.6 billion.
by Rachel Chew Zuraida: Hire foreign plantation workers
In the press release onWednesday (July theedgemarkets.com from various countries
27), its Executive ChairmanTan Sri Lim
Hock San said the achievement is an ex- In the meeting, Lim also touched on
ceptional one. employee engagement, which he hopes
will better improve the morale among
‘‘The sales target for 2022 is RM1.6 employees and create a better working
billion and I am very pleased to note that environment.
we have achieved more than RM1 billion
in our year-to-date sales target, which is an “Speaking of a better working environ-
exceptional achievement in the first half ment, digitalisation and automation is yet
of 2022. All of these were made possible, another aspect that we will continue to
thanks to everyone seated here and also focus on.We aim to further enhance our
those virtually with us today,” said Lim robotic systems that will greatly improve
during the company’s town hall meeting. productivity and streamline our existing
processes, ultimately leading us to data
The town hall meeting is one of the transparency and strategizing plans timely
company’s official communication plat- and effectively,” he noted.
forms for the management and employees
to share on the company updates and hap-
penings. The hybrid event was attended
by 800 staff from both LBS and MGB
Bhd, physically and virtually.
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news In brief
Sunview gets Bursa nod for
ACE Market listing by 4Q22
KUALA LUMPUR (July 27): Solar photovoltaic (From left to right): Gregory Lui, Group Financial Controller, AME Elite Consortium Bhd; Kelvin Lee,
(PV) system construction group Sunview Group MD, AME Elite; Lo Fen Cheong, Senior VP of Equity Capital Markets, Hong Leong Investment
Group Bhd has received the nod from Bursa Bank Bhd (HLIB); Phang Siew Loong, Head of Equity Markets, HLIB; Simon Lee; Chan Wai Leo, CEO, I
Malaysia Securities Bhd to list on the ACE REIT Managers Sdn Bhd; Tony Chieng, CEO, RHB Trustees Bhd; (Ms) Lim San San, Associate Director,
Market, and is expected to make its debut in
the fourth quarter of this year (4Q22). Sunview Business Development, RHB Trustees Bhd at the signing ceremony on Wednesday, July 27, 2022.
is involved in the provision of engineering,
procurement, construction and commissioning AME Elite inks underwriting agreement with HLIB for REIT’s IPO
of solar PV facilities for commercial and KUALA LUMPUR (July 27): AME Elite Consortium Bhd has entered into an underwriting
industrial (C&I) and residential buildings. The agreement with I REIT Managers Sdn Bhd, RHB Trustees Bhd and Hong Leong Investment
initial public offering (IPO) comprises a public Bank Bhd for the initial public offering (IPO) of AME Real Estate Investment Trust (REIT). Hong
issue of 118 million new shares, representing Leong is appointed as the principal adviser, sole underwriter and joint bookrunner, together
25.21% of the company’s enlarged issued with RHB Investment Bank Bhd. The IPO entails an offering of 254.8 million units, representing
share capital upon listing. — by Adam Aziz 49% of AME REIT’s total 520 million units. I REIT Managers, which is wholly-owned by AME
Elite, is the manager of AME REIT, whose trustee is RHB Trustees. — by Chester Tay
Unique Fire IPO’s retail portion
oversubscribed by 5.08 times Malaysia, Singapore collaborate to MPOB, Briar Resources ink
build first green offshore supply vessel agreements for tech transfer
KUALA LUMPUR (July 27): Unique Fire of fertiliser formulations
Holdings Bhd, which is slated to be listed on KUALA LUMPUR (July 27): Malaysia and
Bursa Malaysia’s ACE Market next Friday Singapore will collaborate to build the first KUALA LUMPUR (July 27): Malaysian Palm
(Aug 5), said its initial public offering (IPO)’s green offshore supply vessel (OSV) locally, Oil Board (MPOB) and Briar Resources
public portion has been oversubscribed by worth approximately US$25 million (about Sdn Bhd have inked two memoranda of
5.08 times. The group, which manufactures RM111.5 million). The strategic partnership agreement (MoAs) for the technology
fire protection systems, equipment and would involve three key local shipbuilding and transfer of two fertiliser formulations.
accessories for the built environment, said ship repair players, and an innovative green MPOB said in a statement that the two
it received 2,508 applications seeking 121.5 company from Singapore. The OSV project fertiliser formulations are namely the
million new shares for the 20 million new will commence in 2023, and is expected to be Enhanced MPOB F5 Fertiliser Formulation
shares made available for the Malaysian completed in 18 to 24 months. — Bernama (MPOB F5 Improved) and Enhanced
public under its initial public offering (IPO). MPOB F5 Super Fertiliser Formulation
— by Justin Lim Cagamas concludes pricing of (MPOB F5 Premium). Briar Resources will
RM200 mil CMTNs commercially produce the two fertiliser
OpenSys gets SC nod to transfer formulations for oil palm cultivation. MPOB
to Main Market KUALA LUMPUR (July 27): Cagamas Bhd, Director-General Datuk Dr Ahmad Parveez
the national mortgage corporation of Ghulam Kadir said MPOB F5 Improved
KUALA LUMPUR (July 27): OpenSys Malaysia, has successfully priced its RM200 could be an alternative source of oil palm
(M) Bhd has secured approval from the million five-year Conventional Medium Term fertiliser, besides other types of fertilisers
Securities Commission Malaysia (SC) for Notes (CMTNs). The proceeds from the developed by MPOB. He said the improved
the proposed transfer to the Main Market CMTNs will be used to fund the purchase fertiliser formulation could also be applied
of Bursa Malaysia Securities Bhd. The of eligible assets from the financial system. using the mechanical spreader in the
company, which was listed on the MESDAQ The conclusion of Cagamas’ 17th issuance field. “On the other hand, the improvised
(now ACE) Market of Bursa Securities exercise for the year brought the total formulation and fertiliser form of MPOB
in January 2004, said it had fulfilled the year-to-date issuances to RM8.9 billion. The F5 Premium has been proven to increase
requirement of achieving a minimum CMTNs was priced with a spread of 43 basis nitrogen efficiency and has a higher relative
cumulative net profit of RM20 million in points above the corresponding Malaysian hardness, hence the application rate of
the past three years, despite the impact of Government Securities. — Bernama fertiliser can be reduced,” he said. — Bernama
the Covid-19 pandemic and subsequent
movement control orders. OpenSys said
the steady bottom line had enabled it to
declare and distribute consistent dividends
to shareholders on a quarterly basis since
October 2018. — by Surin Murugiah
HUBLine explores Kuching port development Read also:
SOHO Transit 2 at Astrum Ampang
KUALA LUMPUR (July 27): HUBLine Bhd is exploring a potential collaboration with the open for sale
Europe-based Port of Antwerp-Bruges International (POABI) in the development and
operation of a proposed deep-sea port in Kuching, Sarawak. The company has inked a i-City Finance Avenue now 30%
one-year memorandum of understanding (MoU) with POABI on July 26 for the purpose. complete
POABI is a subsidiary of Europe’s second largest port, Port of Antwerp Bruges. The unit
has stakes in Port of Duqm in Oman, Port of Acu in Brazil, and San Pedro Manutention in
Ivory Coast, its website showed. — by Adam Aziz
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SNS Network “A further RM18 million of the proceeds Kenanga
aims to raise will be used to part finance the construction Research lowers
RM90.7 mil of the company’s new regional hub in Petaling
Jaya to support its nationwide expansion,” said TP for CTOS
from IPO the company, adding that the rest of the funds to RM1.55
raised will be used for repayment of bank
by Lam Jian Wyn borrowings of RM20 million, working capital by Surin Murugiah
theedgemarkets.com (RM13.1 million), marketing of its JOI smart theedgemarkets.com
classroom framework (RM1.5 million) and
KUALA LUMPUR (July 27): SNS Network defraying listing expenses (RM4.7 million). KUALA LUMPUR (July 27):
Technology Bhd, which is tentatively sched- Kenanga Research has maintained
uled to debut on the Ace Market on Sept 2, According to SNS Network’s managing its “outperform” rating on CTOS
expects to raise up to RM90.7 million from director KoYun Hung, the company believes Digital Bhd at RM1.31 with a lower
its initial public offering (IPO) to support its there is big potential in Malaysia’s DaaS mar- target price (TP) of RM1.55 (from
business expansion. ket as more businesses introduce remote or RM1.65) and said 1HFY22 nor-
hybrid work. malised PATAMI of RM39.5 mil-
In a statement onWednesday (July 27), the lion (+27% y-o-y) and interim divi-
information and communications technology Since 2020 and up to June 30 this year, dend of 0.59 sen declared are within
(ICT) system and solutions provider said it SNS has entered into 82 DaaS subscriptions expectations.
will be issuing 362.9 million new shares in with a total subscription value of RM255.86
the company, representing 22.5% of the en- million and received 75 enquiries from gov- In a note onWednesday (July 27),
larged share capital. ernmental bodies and public listed companies. the research house said that it was
reviewing its terminal growth as-
Of the new shares, 80.6 million will be “From the above-mentioned enquiries, sumption on slightly less optimistic
offered to the Malaysian public via balloting, we have entered into contracts with 26 gov- long-term outlook resulting in a lower
while 48.4 million will be offered to its eli- ernmental bodies amounting to RM247.49 DCF-TP of RM1.55 (from RM1.65;
gible directors, employees and persons who million and three public listed companies WACC: 6.2%;TG: 5%).
have contributed to the success of the group. amounting to RM550,000,” he said.
“We applied a 5% premium to
Meanwhile, 201.6 million new shares are “Based on enquires from potential custom- our TP based on our 4-star ESG
reserved for private placement to Bumiputera ers, SNS will purchase ICT products such as rating on the group for its position
investors approved by the Ministry of Inter- desktops,laptops,interactive smartboards,work- as a sustainability enabler as well as
nationalTrade and Industry, with the balance stations, digital signages, printers and servers to commendable board representation.
of 32.3 million new shares to be placed out support the expansion of the service,” he added.
to selected investors. “We believe CTOS serves as a
“The regional hub, which is expected to be solid syariah-compliant and ESG
In addition, SNS Network’s existing share- operational by 2026, will include experience pick,” it said.
holders will also offer 48.4 million existing centres for SNS to showcase new and inno-
shares for private placement. vative ICT solutions on Internet of Things Read also:
such as smart homes, smart retail, smart ed- Technical indicators are
At an issue price of 25 sen apiece and ucation, smart signages and smart shelving. encouraging for HB Global,
based on its enlarged share capital of 1.61 bil- says JF Apex
lion shares, SNS Network is expected to have “It will also have storage facilities, live vid-
a market capitalisation of RM403.2 million. eo areas, training centres, workshops and of- Bintai Kinden could stage a
fice facilities,” added Ko. breakout, says PublicInvest
SNS Network said it plans to use RM33.4
million of the proceeds raised from the exer- For the financial year ended Jan 31,
cise for capital expenditure, of which RM30.9 2022 (FY22), profit after tax (PAT) rose to
million will be allocated towards growing its RM35.92 million from RM23.81 million a
device-as-a-service (DaaS) subscription-based year ago. Notably, its PAT in FY21 tripled
service while RM2.5 million will be used to from RM7.78 million in FY20. In FY19, its
open 10 new retail stores in the KlangValley, PAT stood at RM9.1 million.
Johor and Penang.
Meanwhile, its revenue stood at RM594.14
million in FY19, RM675.28 million in FY20,
RM721.47 million in FY21 and RM1.11 bil-
lion in FY22. M&A Securities Sdn Bhd is the
adviser, sponsor, underwriter and placement
agent for the IPO exercise.
KUALA LUMPUR (July 27): Hong Le- Industry headwinds below consensus projections of 48% and
ong Investment Bank (HLIB) Research unlikely to dissipate 44% respectively.
has maintained its “hold” rating on Ko-
ssan Rubber Industries Bhd at RM1.33 soon for Kossan, “ We b e l i e ve i n d u s t r y h e a d -
with an unchanged target price (TP) of says HLIB winds are unlikely to dissipate
RM1.44, and said Kossan’ s 2QFY22 soon, given the oversupply situa-
core PATAMI of RM43.4 million (-49% by Lam Jian Wyn tion that will continue to keep ASPs
q-o-q; -96% y-o-y) brought 1HFY22 theedgemarkets.com depressed.
core PATAMI to RM128.2 million
(-94% y-o-y). “We make no changes to our earn-
ings projections. [We] maintain 'hold'
In a note on Wednesday (July 27), on Kossan, with an unchanged TP of
the research house said Kossan’s per- RM1.44, implying a P/E multiple of
formance came in within house but was 14.9x on its FY23F EPS of 9.7 sen,” it
said.
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home
Klang MP lodges Apandi’s delegation ‘did not even meet nor Further case
police report speak to the alleged donor’ despite saying oth- management
against former erwise in a press conference on Jan 26, 2016. of ex-FELDA
AG Apandi Ali
“At the press session, Apandi claimed chairman
by surin murugiah that he sent a mission to Riyadh and had Isa Samad’s
theedgemarkets.com personally met the donor and recorded RM3 mil graft
the donor’s personal confirmation of the appeal on Sept 8
KUALA LUMPUR (July 27): Klang mem- donation (para 79 page 42-43).
ber of Parliament (MP) Charles Santiago by hafiz yatim
has lodged a police report against former “He then proceeded to clear Najib of all theedgemarkets.com
attorney general (AG) Tan Sri Mohamed wrongdoings, confirming that the RM42
Apandi Ali, alleging that Apandi had fabri- million in Najib’s account was a donation PUTRAJAYA (July 27): It seems that
cated information and lied while in office, from a Saudi prince.This is a blatant lie,” the records of appeal for former Federal
leading to abuse of his powers as the prin- the MP said. Land Development Authority (FEL-
cipal legal advisor of the country. DA) chairmanTan Sri Mohd IsaAbdul
Santiago noted that Azimah further said Samad's RM3.09 million graft charges
From the decision delivered by High Apandi’s “testimony admitting to adopt the over the authority's purchase of Merde-
Court Justice Datuk Azimah Omar in Apan- donation narrative as a whole, although in ka Palace Hotel & Suites between 2014
di’s defamation suit against DAP veteran gross absence of direct evidence, and in and 2015 are not ready yet.
Lim Kit Siang, it was evident that Apan- preference to low-hanging fruits of his del-
di, who was the AG, abused his powers by egation’s hearsay evidence” has “exhibited Hence, the Court of Appeal has
blatantly lying about the investigations into a plain, disinterested, evasive, and disasso- to fix another case management
SRC International Sdn Bhd and 1Malaysia ciated attitude to investigate the donation date on Sept 8, when it will possi-
Development Bhd with the intent to set Na- further and preferred to simply depend bly decide on a date for the hearing
jib free from facing trial, Santiago said in a on his own delegation’s word of mouth”. of Isa's appeal, along with the pros-
statement onWednesday (July 27). ecution's cross-appeal over the ac-
“Azimah, in her judgement, said Apandi quittal of Isa of the criminal breach
“In her judgment, Azimah noted that was ‘astoundingly indifferent, evasive, decep- of trust (CBT) charge in relation to
tive, and lackadaisical’ in ‘pursuing the truth the acquisition of the property, ac-
behind the fantastical donation’,” he added. cording to Deputy Public Prosecutor
Afzainizam Abdul Aziz.
The lawmaker highlighted that while the
court also noted that although a special in- This was decided following case
vestigation team recommended that the mat- management on Wednesday (July
ter be fully investigated, Apandi failed to do 27) before Court of Appeal senior
so and instead ordered no further action. assistant registrar Tan Chai Wei.
IPOH (July 27): Tronoh assemblyman Paul Tronoh assemblyman Usually, after the records of appeal
Yong Choo Kiong has been sentenced to 13 gets 13 years’ jail, are ready, both the defence and pros-
years’ jail and two strokes of the cane by the whipping for ecution can file the petition of appeal
High Court here onWednesday (July 27),after raping maid stipulating the grounds of appeal.
he was found guilty of raping his maid in 2019.
Bernama Isa has been convicted of graft
Judge Datuk Abdul Wahab Mohamed and sentenced to six years in jail and
handed down the sentence on Yong, after The charge, framed under Section 376 a fine of RM15.45 million, on Feb
finding that the defence had failed to raise (1) of the Penal Code, provides a jail term 3 last year, by Justice Datuk Mohd
reasonable doubt at the end of its case. of up to 20 years and is liable to whipping, Nazlan Mohd Ghazali, who is now
upon conviction. a Court of Appeal judge.
However, the court allowedYong’s appli- More court stories:
cation for a stay of execution pending appeal. Bank manager can’t verify funds Justice Nazlan, however, acquit-
transferred belonged to Shahrir ted him of the CBT charge at the
The court also allowed Yong bail of end of the prosecution's case, result-
RM30,000, with one surety, and ordered No intent to fabricate testimony due to ing in the prosecution cross-appeal-
him to surrender his passport to the court. debt of gratitude to Guan Eng, says star ing the acquittal.
witness
In his judgement, Abdul Wahab said a Isa, a former Umno vice-presi-
heavy deterrent punishment should be im- TTDI Rimba Kiara longhouse residents dent, was accused of receiving the
posed on Yong, so as to serve as a lesson living in ‘appalling and squalid’ RM3.09 million bribe from a former
to him and also to others. conditions director of Gegasan Abadi Proper-
ties Sdn Bhd, between July 21, 2014
“As an employer, he should have been and Dec 11, 2015. Gegasan Abadi
the one who provided protection to the previously owned the hotel before
maid, not the one who succumbed to sexu- letting it go to FELDA.
al lust to commit such a crime,” he added.
On March 31, the defence, led by lawyer
Datuk Rajpal Singh with Salim Bashir,closed
their case after calling three witnesses, name-
ly Yong, 52, his wife Too Choon Looi, 46,
and the maid’s uncle Muhammad Rusdi, 51.
Yong was accused of raping the 23-year-
old maid in a room on the first floor of his
house in Meru Desa Park between 8.15pm
and 9.15pm on July 7, 2019.
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home
New MoU not poration (PTPTN) Silver Jubilee cel- MP who
needed for govt ebration here on Wednesday (July 27). changes party
and opposition, must vacate
Meanwhile, he said several matters seat under Anti-
says PM stated in the MoU between the Gov- Party-Hopping
ernment and Pakatan Harapan (PH) Bill, says PM
Bernama would also be implemented, such as
the constitutional amendment to by Shazni Ong
KUALA LUMPUR (July 27): The Gov- prohibit members of Dewan Rakyat theedgemarkets.com
ernment and the Opposition have agreed from changing parties and the polit-
that there is no need for a new written ical funding law. KUALA LUMPUR (July 27): Any
agreement between them to replace the member of Parliament (MP) who leaves
Memorandum of Understanding (MoU) When asked about the expiry date one coalition party and joins another
on Transformation and Political Stability of the MoU, Ismail Sabri said the political party in the same or a different
signed in September 2021. MoU will expire when the Parliament coalition party will cease to be a mem-
is dissolved. ber of the Dewan Rakyat.
However, Prime Minister Datuk Seri
Ismail Sabri Yaakob said despite being He said the MoU only mentioned Additionally, any MP who switches
unwritten, the understanding meant to that the next general election shall not political parties or who leaves the po-
ensure the wellbeing of the people and be held before July 31 and the date litical party for which he was a candi-
political stability in the country, could was not the expiry date of the MoU. date during the election to become an
still be continued. independent, will cease to be a member
He stressed that the dissolution of the Dewan Rakyat and will have to
“To continue or not to continue (the of Parliament does not depend on vacate the seat.
MoU) is not important. What’s impor- anything and that it will be dissolved
tant is the understanding to continue when the time comes. The two are among the eight main
protecting public interests. parameters in the drafting of the Consti-
“If I feel the time is right to dis- tution (Amendment) Bill (No. 3) 2022
“Both sides have agreed that there is no solve the Parliament, I will dissolve related to the ban on MPs changing par-
need for a new written agreement to con- it...either this year or next year,” he ties, which was tabled by Prime Minister
tinue the mutual understanding to protect said. Datuk Seri Ismail SabriYaakob in the
public interests to ensure political stabili- Dewan Rakyat onWednesday (July 27).
ty,” he told reporters after launching the On Sept 13 last year, the Federal
National Higher Education Fund Cor- Government and PH signed the MoU This comes after the Bera MP ex-
to ink their bipartisan cooperation for plained that the term “member of the
the sake of political stability, which House of Representatives” refers to
comprises a Covid-19 plan, admin- them having a membership in a politi-
istrative transformation, parliamen- cal party, regardless of whether the party
tary reform, judiciary independence, is a member of a coalition.
Malaysia Agreement 1963 and the es-
tablishment of a steering committee. However, Ismail Sabri said there are
exceptions to the rule such as if the MP
KUALA LUMPUR (July 27): The First class is dismissed from membership in a po-
government will reintroduce the Na- degree litical party, elected as Dewan Rakyat
tional Higher Education Fund Cor- speaker or if the MP’s political party
poration (PTPTN) loan repayment graduates to was dissolved or deregistered.
exemption to graduates who earn first- get PTPTN
class bachelor’s degree beginning from loan repayment Read also: Ismail Sabri tables An-
2019. exemption ti-Party-Hopping Bill in Dewan Rakyat
Prime Minister Datuk Seri Ismail Bernama
SabriYaakob said the privilege would be
given to deserving graduates, regardless PTPTN loans to do so immediately,
of economic status, race and religion. so that the study loans can continue
to be given to new students.
As such, he hoped that PTPTN could
discuss with the Ministry of Finance re- “Repayment of study loans is im-
garding the matter, in terms of the allo- portant to ensure continuity and avail-
cations involved. ability of the fund for new students
who are also heirs of the nation,” he
“This is as an encouragement to the said.
children of Keluarga Malaysia (Malay-
sian Family) to work hard and obtain The prime minister said as of last
the best grades in their studies,” he said. month, over two million or 82.04% of
PTPTN borrowers had settled their
He made the announcement in his loans totalling RM17.8 billion.
speech at PTPTN’s 25th Silver Jubi-
lee Celebration at the Malaysia Exter-
nal Trade Development Corporation
(MATRADE) Exhibition and Conven-
tion Centre (MECC) on Wednesday
(July 27).
Meanwhile, Ismail Sabri advised all
borrowers who have yet to settle their
t h u r s d a y j u LY 2 8 , 2 0 2 2 18 T h e E d g e C E O m o r n i n g b r i e f
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KUALA LUMPUR (July 27): Health Tobacco Bill: son from smoking inside the building or
Minister Khairy Jamaluddin on Wednes- Those born in vehicle.Those found violating this can be
day (July 27) tabled Malaysia’s Tobacco or after 2007 can fined up to RM5,000.
Product and Smoking Control Bill 2022 be fined up to
for the first reading in the Dewan Rak- RM5,000 if caught Meanwhile, the police are authorised
yat to introduce a generational endgame smoking or vaping to enter premises to take samples for in-
law, which will, among others, prohibit the vestigation, and are given the power to
smoking of cigarettes among persons born by shazni ong open any baggage, package, or any forms
in 2007 and after. theedgemarkets.com of container and may examine any tobac-
co product, smoking substance, substitute
“The second reading (debate) and third Companies caught doing so will be tobacco product, smoking device or their
reading will be done in this (current Dewan liable to a fine of at least RM20,000 — imitations.
Rakyat) meeting,” Khairy said. but not exceeding RM100,000 — and/
or its representatives can be jailed up to Another important aspect of the pro-
According to the Bill, the approved law two years for the first offence. For subse- posed law is that the Health director gen-
may be cited as the Control of Tobacco quent offences, the company can be fined eral has full power in approving and can-
Product and Smoking Act 2022. at least RM50,000 — but not more than celling approval for tobacco or substitute
RM300,000 — and/or its representatives tobacco products.
If it is passed into law, those born from can be jailed up to three years.
Jan 1, 2007 can be fined up to RM5,000 if The proposed law aims to “provide for
they buy, smoke or possess smoking-related The Bill also stipulates that smoking the registration of tobacco products, smok-
products like cigarettes or vape products. in non-smoking areas or places is prohib- ing substance or substitute tobacco prod-
ited, and that offenders can be fined up ucts, the control of advertisement, promo-
And any person caught selling tobacco to RM5,000. tion and sponsorship, sale and purchase of
or vape products to those born from Jan 1, tobacco products, smoking substance, sub-
2007 can be fined up to RM20,000 and/or Under the Bill, building owners and stitute tobacco products or smoking devices,
jailed up to one year for the first offence, occupiers have a duty to display no-smok- and the prohibition of the smoking of tobac-
followed by a fine of up to RM30,000 and/ ing signs and are prohibited from provid- co products or substitute tobacco products,
or jailed up to two years for subsequent ing “smoking equipment, facilities or any and the prohibition of the use of smoking
offences. method intended to encourage any per- devices, by any person that was born in 2007
son to smoke”. They are also to take all onwards and for related matters”.
Zahid Izzani Mohd Said/The Edge reasonable measures to prevent any per-
On Monday, it was reported that the
Khairy: The second reading (debate) proposed Control ofTobacco Product and
and third reading will be done in this Smoking Act 2022 was adjusted to cover
persons born after 2007, instead of 2005.
(current Dewan Rakyat) meeting.
Khairy said in a Twitter update at the
time that the adjustment was targeted to
give the government more time to devel-
op a more comprehensive plan to imple-
ment the law.
On Wednesday, he wrote a Facebook
post asking readers to imagine that one day,
those born in the years from 2007 will not
know what a cigarette is. “That is the goal
of the generational endgame,” he added.
KUALA LUMPUR (July 27):The feder- Fed govt to carry out debt payments, subsidies, and
al government’s total expenditure stood expenditure at emolument and pension payments. He also
at RM86.7 billion in the first quarter of RM86.7 bil in wanted to know the total value of these
2022 (1Q22), according to the Ministry 1Q22 — MOF commitments in 1Q22.
of Finance (MOF).
Bernama The MOF said the payments of debts,
Of this, it spent RM22 billion for retirement benefits and emoluments are
emolument payments, RM9.1 billion “locked in”, compared to other expendi-
for debt service payments, and RM8.4 ture components.
billion for pension payments, the min-
istry said. Therefore, it added, the government al-
ways ensures that its finances are strong in
In addition, RM11.5 billion went to- order to be able to fulfil its commitments.
wards subsidies, aid and incentives includ- More parliament stories:
ing subsidies for petrol, diesel and liquefied Malaysia to continue to cooperate
petroleum gas (cooking oil) as well as Ban- with RCEP members, says Azmin
tuan Keluarga Malaysia Phase 1 payout,
the MOF said in a written parliamentary FELDA settlers to bear RM18,000
reply on Wednesday (July 27). in debt for replanting of oil palm
It was responding to a query from Da-
tuk Seri Saifuddin Nasution Ismail (Paka-
tan Harapan-Kulim-Bandar Baru) on the
government’s current financial capability
t h u r s d a y j u LY 2 8 , 2 0 2 2 19 T h e E d g e C E O m o r n i n g b r i e f
|P R E S E N T E D B Y |M A I N P A R T N E R |S U P P O R T I N G P A R T N E R |S U P P O R T E D B Y
ENDORSED BY
MINISTRY OF HOUSING AND
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t h u r s d a y j u LY 2 8 , 2 0 2 2 20 T h e E d g e C E O m o r n i n g b r i e f
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Former AGTommyThomas
explains the Sulu claim
Below is a statement from former will to Gustavus Baron de Overbeck of Hong signed the Confirmation Deed, stating that
attorney general Tan Sri Tommy Kong and Alfred Dent Esquire of London some islands unnamed in the 1878 Grant
Thomas dated July 27. as representatives of a British Company … were also ceded to the Government of Brit-
1.The recent public discussion on the “Sei- ish North Borneo. Further, “cession mon-
zure Notice” issued in Luxembourg against forever and in perpetuity all the rights eys” were increased by 300 dollars a year.
assets belonging to Petronas to satisfy the and powers belonging to us over all Also signing the 1903 Deed was the Gov-
US$14.92 billion award by the Spanish Ar- the territories and lands… ernor of British North Borneo, E.W. Birch.
bitrator Gonzalo Stampa has been marred In consideration of this grant … to From 1903, the annual compensation has
by a fog of disinformation and lies. The pay as compensation to the Sultan the been fixed at 5,300 dollars.
Malaysian public is entitled to truthful sum of five thousand dollars per annum.
disclosure of matters concerning the dis- In case any dispute shall arise C.The Significance of the 1939
pute between the Sulu Claimants and the between His Highness the Sultan his heirs Macaskie Judgment
Government of Malaysia, which led to this or successors and the said Gustavus Baron
massive but completely illegitimate award. de Overbeck or his Company it is hereby 6. The case referred to in paragraph
This note is to record my experience in agreed that the matter shall be 4 above was filed in the High Court of
dealing with the dispute after I was briefed North Borneo in 1939 by the descendants
on it in August/September 2019 during the submitted to Her Britannic Majesty’s of the Sultan of Sulu to determine which
last six months of my tenure as Attorney Consul-General for Borneo.” of them should rightfully receive the an-
General. At the outset, I should state that (my emphasis) nual compensation of 5,300 dollars. It did
I no longer have access to documents, un- not involve the British North Borneo nor
less they are in the public domain. I hope 3. None of the material parts are ambiguous. the British Government, neither of which
this article will prompt those who have the They are drafted in clear terms with legal questioned their legal obligation to contin-
full facts to join in the public discussion. implications, indicating the will of the par- ue paying compensation of 5,300 dollars
2. The 1878 Grant is the sole and exclu- ties. It was intended to have legal force.The annually. Hence, it was the Sulu Claimants
sive basis of the claim by the descendants first paragraph of the 1878 Grant clearly, who had a grievance among themselves
of the Sultan of Sulu. That Grant ceded plainly and unequivocally grants “for ever and it was their choice to sue in the courts
ownership and sovereignty in perpetuity and in perpetuity” the lands identified in the of North Borneo. Their choice to sue in
of parts of present day Sabah to the British document to two gentlemen as agents and North Borneo (rather than resorting to
North Borneo Company. It was a legacy representatives of the British North Bor- arbitration or any other forum) is of much
of Empire. It was similar to the grant of neo Company. That paragraph cannot be legal significance, and relevant to the pres-
Bombay by the Portuguese to the British interpreted in any other manner but as an ent dispute. It is another factor pointing to
in 1661 and the ceding of NewYork (New outright grant which had the legal effect of North Borneo (or present day Sabah) as
Amsterdam) by the Dutch to the British in transferring ownership of such lands from the natural and proper forum for the res-
1664. Nearer home, Penang in 1786 by the the Sultan of Sulu to the British Company. olution of disputes relating to or arising
Sultanate of Kedah and Singapore in 1819 It was not a lease, and never intended to be from the 1878 Grant, to the exclusion of
by the Sultanate of Johore: in both cases to of a temporary duration.The “consideration” any other forum.
the British. In none of these cases is there for the cession was compensation in the sum
a similar claim in the 21st Century aris- of 5,000 dollars per annum, impliedly also D.The effect of Malaysia’s
ing from the original grant in perpetuity. for ever.That sum is fixed, and not subject establishment in 1963
The Sulu claim must therefore be viewed to any increase or review.
in the context of empire and colonialism. 4.The legal effect of the 1878 Grant was de- 7. The British Government had become
The transfer of other peoples’ lands by one termined by the High Court of North Bor- successor in title to the British North Bor-
empire to another was commonplace in neo in 1939 in Dayang Dayang Haji Piandao neo Company in 1946 when North Borneo
centuries past; a legal challenge by arbi- Kiram (f) v.The Government of North Borneo. became a colony of the United Kingdom.
tration centuries later is novel. The following statement was made by Chief Thus between 1946 and 1963 the British
A.The bargain under the 1878 Grant Justice Macaskie in that case: Government paid annual compensation of
5300 dollars to the Sulu Claimants.
The three material parts of the “The deed of Cession was a complete 8.The formation of Malaysia in 1963 pre-
Grant read as follows:- and irrevocable grant of territory and the sented a natural opportunity to end the an-
nual payments to the Sulu claimants. Our
“GRANT by Sultan of Sulu ofTerritories right reserved was only the right to an founding fathers could have easily argued
and Lands on the Mainland of the Island of annual payment, a right which is in the that the 1878 Grant was a colonial relic
which did not bind the new Federation and
Borneo. Dated 22nd January, 1878. nature of movable property.” the annual obligation to pay compensation
We … Sultan of Sulu … hereby grant and B.The Effect of the Confirmation shall remain with the British. Regrettably,
the new Federation instead assumed the
cede of our own free and sovereign Deed of 1903 legal obligation of the retreating British
5. On 22nd April 1903, the Sultan of Sulu
continues on Page 21
t h u r s d a y j u LY 2 8 , 2 0 2 2 21 T h e E d g e C E O m o r n i n g b r i e f
h o me
from Page 20 PHILIPPINES
colonial power to pay annual compensa- SABAH
tion without hesitation or protest. Malaysia
made such payments annually and without
interruption until 2013. The continuous
payment by Malaysia for 50 years is strong
? indeed indisputable ? evidence that Ma-
laysia stepped into the shoes of the British
Government as successor-in-title, and is es-
topped from contending otherwise. Hence
in that half a century, Malaysia’s legal obli-
gation to pay annual compensation to the
Sulu claimants was never questioned by
the Malaysian government.
E.Why did Malaysia cease
payments in 2013?
9.To the best of my knowledge, the Gov- 1878 Grant, which in practical terms mean dispute between the parties. Assurance was
ernment of Malaysia did not public- that Malaysia must restore the arrears of also given to them that Malaysia would
ly explain in 2013 why it ceased annual annual compensation of RM5,300/- from pay the said annual sum for future years.
payments of compensation to the Sulu 2013 until 2022, and undertake to pay the My letter expressly stated that the case was
Claimants. This occurred during the ad- said sum annually thereafter. wrongly brought within the jurisdiction of
ministration of Najib Razak. The Prime 12. Specific performance of the 1878 con- Spain and that Malaysia was not recog-
Minister, the Ministers of Foreign Affairs tract in practical terms means an annual nizing nor submitting to the jurisdiction
or Defence or the Attorney General ought monetary payment, the quantum of which of Spain, whether exercised by its court,
to have issued a public statement ration- was fixed in 1878 and 1903.The only loss arbitral tribunal or otherwise.
alising their decision. Indeed, until today, that the Sulu Claimants suffered was the Thomas’ statement further discusses:
a decade later, members of that adminis- loss of the annual compensation sum of What is the basis of the Arbitration
tration have remained silent, which has led RM5,300/-: no more or no less. The fun- commenced in 2018 by a Spanish
to unnecessary speculation and confusion. damental law of damages or compensa- Court appointing a sole Spanish Ar-
10.The often given, unofficial explanation tion payable for loss caused by breach of bitrator
is that Malaysia stopped the payments be- contract is that when a contract has been The significance of the decision of the
cause of the armed incursion in 2013 into broken, the party who suffers by the breach High Court of Sabah in 2020
Lahad Datu in Sabah. However, there ap- is entitled to receive, from the party who Behaviour of Arbitrator Stampa
pears to be no evidence linking the Sulu has broken the contract, compensation for Spanish and French Arbitrations
Claimants who were receiving the annu- any loss or damage caused to him thereby Legally unsustainable claim by the
al compensation from Malaysia with the which naturally arose in the usual course Sulu Claimants
armed invaders of Lahad Datu. If the Gov- of things from the breach. In other words, Sovereign Immunity
ernment of Malaysia had such evidence, the innocent party to the contract must, so Arbitral Imperialism
the prudent course would have been to file far as money can do it, be restored to the Actions against Stampa and Cohen
an action in the High Court of Sabah at position which that innocent party would Enforcement of Arbitration Awards
Kota Kinabalu against the Sulu Claimants have been in had the contract not been under the New York Convention
(all of whom were known to our Embassy breached by the blameworthy party. Is a Special Task Force necessary?
in the Philippines where the annual pay- 13. By letter dated 19th September 2019,
ment was disbursed to them), seeking an I wrote to the counsel representing the Read the full statement
Order of the Sabah Court that because Sulu claimants offering to pay the arrears
the Sulu Claimants were personally and from 2013 to 2019 totaling RM37,100.00,
directly involved in the Lahad Datu inva- together with 10% simple interest total-
sion they had forfeited their right to receive ing RM11,130.00. Hence the tender that
future payments and that the 1878 Grant I made to them was for a total sum of
had ceased to operate. If that had occurred, RM48,230.00. That represented in law
the Government’s action to cease payment the loss they suffered in the 7 years pe-
would have received judicial imprimatur. riod. Further, acceptance by them of the
Regrettably, this option was not exercised said sum of RM48,230.00 would also have
by those in charge in 2013. meant that there would no longer be any
11.Without ever having given any reason
to cease payments to the Sulu claimants
after 50 years, and without ever having
sought judicial approval of the termination
of payments, Malaysia breached the 1878
Grant. In consequence, the Sulu Claimants
would have a right to specific performance
of the contract in question, namely, the
T H U R S D A Y J U LY 2 8 , 2 0 2 2 22 T H E E D G E C E O M O R N I N G B R I E F
WORLD
(July 27):A district on the outskirts ofWuhan Wuhan locks The city government asked its 100 big-
has been locked down, the first time the Chi- down one million gest companies, including iPhone maker
nese city that saw the world’s first Covid-19 residents in echo Foxconn and oil producer Cnooc Ltd to
lockdown has imposed such a measure since restrict operations only to employees living
2020, underscoring how far the country is of pandemic’s within a closed loop or bubble, with little to
from post-pandemic normalcy. start no contact with people beyond their plants
or offices.Authorities also asked companies
More than two years since the city Bloomberg to reduce unnecessary interaction between
was sealed off to contain what was then a non-manufacturing staff and factory floors
mysterious pneumonia, almost one mil- Attention is also on the southern manu- to reduce infection.
lion residents ofWuhan’s Jiangxia district facturing hub of Shenzhen, which reported
have been told to stay in their homes and 4 new cases to take the tally since July 19 Officials in Shenzhen said Tuesday that
not go out unless necessary. All public to more than 150.The flareup prompted the outbreak is under control, with most cas-
transport has been stopped and enter- an order for some of China’s biggest com- es being found early and promptly isolated,
tainment venues shut for three days after panies to operate within a “closed loop” though they still expect to find new infections.
four asymptomatic cases were found in system for seven days, raising concerns The outbreak is linked to cross-border cas-
the district on Tuesday. about global supply chain disruptions. es, health commission official Lin Hancheng
said, without giving further details.
While so far the restrictions are con- Outbreak persists
tained to just the one district, the move is Shenzhen police last week said they arrested
likely to spark concerns about a widening 82 people, 19 of whom were drivers deliv-
of curbs. Life in the pandemic-scarred city ering supplies between Shenzhen and Hong
of 11 million people had largely returned Kong, for smuggling goods and breaching
to normal since its initial lockdown in 2020 epidemic prevention laws in recent months.
— which set a precedent for how Chinese Authorities said they will strictly enforce the
authorities would handle flare ups in other closed-loop system for drivers, who aren’t
parts of the country — with a small out- supposed to have contact with the outside
break in April and a handful of cases in community while they are working.
the past month.
Read the full story
China is sticking to its Covid Zero strat-
egy of lockdowns, movement restrictions Read also: Singapore sees Covid crisis
and mass testing despite it being chal- settling down as cases start to fall
lenged like never before, with more con-
tagious variants circumventing the strict-
est of curbs. The country reported 604
local cases for Tuesday, down from 868
a day earlier.
BEIJING (July 27): Beijing is welcoming Beijing reopens tinue to ramp up negotiations with certain
back direct inbound passenger flights from for international countries to increase services. A represent-
overseas for the first time in more than two flights after Covid ative for the agency didn’t immediately
years, as China eases parts of what is still respond to a Bloomberg News request for
the toughest pandemic border regime in isolation comment.
the world.
BY CLAIRE CHE & DANNY LEE Even with the easing of quarantine
Air China Ltd’s website shows it re- Bloomberg rules, China remains isolated in a world
started a direct flight from Paris once that’s mostly pivoted to living with the vi-
a week, while ANA will resume week- BLOOMBERG rus. Anyone wanting to travel to the coun-
ly flights from Narita in August. Mean- try faces a list of requirements and possi-
while, Etihad Airways PJSC resumed di- ble disruptions, and a potential increase
rect flights to the capital in late June, after in inbound flights is constrained by a rule
China halved the length of time incom- that limits airlines to just one internation-
ing travellers must spend in a quarantine al flight a week, as well as passenger caps
facility to seven days, state broadcaster and the potential for suspensions under
China National Radio reported earlier a circuit-breaker.
this month.
On July 26,VariFlight data showed 94
China’s Civil Aviation Administration international flights going to and from
banned direct flights into Beijing from China, down from the 2,883 on the same
overseas in early 2020, making travel day in 2019.
difficult. Anyone heading to the capital
was required to first land at one of a Chinese airlines have announced plans
list of pre-approved cities, where they to increase overseas services, state me-
would need to quarantine, before trav- dia CCTV reported earlier this month.
eling onward. Air China will gradually resume multiple
international flights to Europe and Asia,
The aviation regulator said earlier this while China Eastern Airlines Corp plans
month that it’s gradually resuming inter- to operate more than 130 international
national commercial flights and will con- flights per week, the broadcaster said.
T H U R S D A Y J U LY 2 8 , 2 0 2 2 23 T H E E D G E C E O M O R N I N G B R I E F
WORLD
China’s biggest builder Country Garden
sells stock as liquidity crunch worsens
BY JOHN CHENG
Bloomberg
HONG KONG (July 27): China’s biggest de- before rebounding to 42.6 centsWednesday. a Chinese developer was a relatively small one
veloper is pulling out all the stops to ensure it Its shares slumped 15% on Wednesday, byTimes China Holdings Ltd in late January.
can service its debt, an indication that the in-
dustry’s year-long liquidity crunch is worsening taking this year’s slide to more than 50%. “More Chinese developers could look to
even as policymakers pledge support. The placement “shows its desperation for raise funds through share sales if they are able to
do so, particularly given that the bond funding
Country Garden Holdings Co is selling cash amid weakening liquidity” while nega- channel remains shut for privately-owned devel-
stock at a 13% discount to raise HK$2.83 tive factors including rising delivery costs of opers while they still have significant near-term
billion (US$361 million). Some of the pro- presold homes, slowing contracted sales and refinancing needs,” said Christy Lee, portfolio
ceeds will be used to repay offshore debt, it challenges in selling bonds onshore are hurt- manager at AXA Investment Management.
said, helping spur gains in the company’s ing its cash flows, Bloomberg Intelligence ana-
dollar bonds — held by global investors such lysts including Kristy Hung wrote in a note. Sale proceeds
as BlackRock Inc and Schroders Plc. The Guangdong province-based developer
Markets are still indicating concerns about had initially offered 840 million shares at the
Home sales in the world’s second-largest the developer’s repayment risks, with its dollar same price, according to terms of the deal
economy have tumbled for a year, while a gov- bonds still in distressed territory.While stocks obtained by Bloomberg News. Proceeds of the
ernment deleveraging campaign has squeezed and bonds of Chinese real estate firms have ris- share sales will be used for repaying offshore
funding and led to a slew of defaults. Country en sharply recently amid signs of growing state debts, general working capital and future de-
Garden’s fundraising is a sign that even the support for a struggling housing sector, many velopment purposes, according to a Hong
healthiest developers are in distress with the observers say a longer-term rebound in home Kong Stock Exchange filing Wednesday.
sector unable to take advantage from the ample sales is necessary to sustain any market rally.
cash sloshing around China’s banking system. In an emailed statement, Country Gar-
Still, the plan could open a path forward for den said the share sale will help it buy back
The move “suggests a challenging fund- the sector by capitalising on optimism of state bonds both onshore and offshore, further
ing environment for China’s privately owned support to draw investors betting on a bot- reducing its debt pile.
companies in light of the property down- tom.The last share placement conducted by
turn”, said AgnesWong, head of APAC credit Country Garden’s share sale plan “aligns
strategy at BNP Paribas. with the company’s direction to explore vari-
ous financing channels”, said Shu HuiWoon,
Country Garden’s debt woes and rat- credit analyst at Lucror Analytics. “The use
ing slide into the junk category earlier this of funds to repay offshore indebtedness will
year formed part of a watershed moment in provide assurance for offshore noteholders
China’s credit market, when financial stress especially when most developers prioritise
began spreading from weaker developers to onshore payment.”
once healthy-looking peers and state-backed
companies.
It was a stunning reversal for a developer
that was until recently considered one of Chi-
na’s safer private-sector builders.A dollar bond
due 2024 fell to a record low of about 33 cents
last week from near par at the start of this year,
Read also:
Yango becomes latest Chinese developer to
face wind-up petition
Iron ore rally pauses as traders seek clues
on China property
T H U R S D A Y J U LY 2 8 , 2 0 2 2 24 T H E E D G E C E O M O R N I N G B R I E F
WORLD
Russia cuts gas flows further as
Europe makes savings plea
BERLIN/FRANKFURT (July 27): Russia BY PAUL CARREL & CHRISTOPH STEITZ Uniper and Italy’s Eni both said they
delivered less gas to Europe onWednesday Reuters received less gas from Gazprom than in
in a further escalation of an energy stand- recent days.
off between Moscow and the European Kremlin spokesman Dmitry Peskov said
Union that will make it harder, and cost- Gazprom was supplying as much gas to Eu- Mueller issued another plea to house-
lier, for the bloc to fill up storage ahead rope as possible, adding that sanctions-driven holds and industry to save gas and avoid
of the winter heating season. technical issues with equipment were pre- rationing.
venting it from exporting more.
The cut in supplies, flagged by Gaz- “The crucial thing is to save gas,” Mu-
prom earlier this week, has reduced the ‘Save gas’ eller said. “I would like to hear less com-
capacity of Nord Stream 1 pipeline — the On Wednesday, physical flows via Nord plaints but reports (from industries saying)
major delivery route to Europe for Russian Stream 1 tumbled to 14.4 million kilo- we as a sector are contributing to this,” he
gas — to a mere fifth of its total capacity. watt hours per hour (kWh/h) between told broadcaster Deutschlandfunk.
0900-1100 GMT from around 28 million
On Tuesday, EU countries approved kWh/h a day earlier, already just 40% of German industry groups, however,
a weakened emergency plan to curb gas normal capacity.The drop comes less than warned companies may have no choice but
demand after striking compromise deals a week after the pipeline restarted following cut production to achieve bigger savings,
to limit cuts for some countries, hoping a scheduled 10-day maintenance period. pointing to slow approval for switching from
lower consumption will ease the impact natural gas to other, more polluting fuels.
in case Moscow stops supplies altogether. European politicians have repeatedly
warned Russia could stop gas flows com- Mercedes-Benz CEO Ola Kaellenius
The plan highlights fears that countries pletely this winter, which would thrust Ger- said a mixture of efficiency measures, in-
will be unable to meet goals to refill stor- many into recession and send prices for con- creased electricity consumption, lowering
age and keep their citizens warm during sumers and industry soaring even further. temperatures in production facilities and
the winter months and that Europe’s frag- switching to oil could lower gas use by
ile economic growth may take another hit The Dutch wholesale gas price for Au- up to 50% within the year, if necessary.
if gas will have to be rationed. gust, the European benchmark, jumped 9%
to 205 euros per megawatt hour onWednes- Germany is currently at Phase 2 of a
Royal Bank of Canada analysts said the day, up around 412% from a year ago. three-stage emergency gas plan, with the
plan could help Europe get through the final phase to kick in once rationing can
winter provided gas flows from Russia are Klaus Mueller, head of Germany’s net- no longer be avoided.
at 20-50% capacity, but warned against work regulator, said the country could still
“complacency in the market European avoid a gas shortage that would prompt “If you asked me whether it (a gas
politicians have now solved the issue of its rationing. shortage) is imminent, then I would say
Russian gas dependence”. that if flows remain at 20% and if we can
Germany, Europe’s top economy and its still add to storage facilities in the coming
While Moscow has blamed various largest importer of Russian gas, has been days and weeks, then we do not yet have a
technical issues for the supply cuts, Brus- particularly hit by supply cuts since mid- physical gas shortage, which would be the
sels has accused Russia of using energy June, with its gas importer Uniper requir- prerequisite for Phase 3,” Mueller said.
as a weapon to blackmail the bloc and ing a 15 billion euro (US$15.21 billion) Read also: Europe is faking solidarity,
retaliate forWestern sanctions over its in- state bailout as a result. and Putin knows it: Andreas Kluth
vasion of Ukraine.
t h u r s d a y j u LY 2 8 , 2 0 2 2 25 T h e E d g e C E O m o r n i n g b r i e f
HONOURING MALAYSIA’S
BEST PERFORMERS IN
ESG EXCELLENCE
INTRODUCING THE INAUGURAL
In Collaboration With
Main Partner Knowledge Partner Auditor
(Funds Category)
T H U R S D A Y J U LY 2 8 , 2 0 2 2 26 T H E E D G E C E O M O R N I N G B R I E F
WORLD
SINGAPORE (July 27): OPEC+ king- Saudis to hike oil Physical cargoes of September-loading Mur-
pin Saudi Arabia is expected to price its price to record ban crude, favoured by buyers in Japan, South
flagship crude to Asia at a record differen- even as traders Korea and Thailand, traded at more than
tial for September, even as traders see the US$10 a barrel premium to Dubai bench-
scope for a weaker spot market the follow- see risks mark in the spot market earlier this month.
ing month, highlighting a potential turning
point for the market. BY SHARON CHO OnWednesday, Murban crude futures
Bloomberg for September slid more than US$4 a bar-
The world’s top crude exporter is ex- rel on the ICE Futures Abu Dhabi ex-
pected to price its Arab Light crude to Asia fining margins. Gasoline cracking margins change, traders said.
at a US$10.80-a-barrel premium to the re- in Asia have slumped more than 70% since
gion’s benchmark for September-loading late June, while those for diesel sank 39%. Saudi Arabia is the de facto leader of
cargoes, according to the median estimate the Organization of Petroleum Exporting
in a Bloomberg survey of five refiners. At the The spot premium for Abu Dhabi’s Mur- Countries, which seeks to steer the global
same time, a slump in margins for Asian pro- ban crude for October is seen declining at oil market by regulating production with
cessors means that such a hike may dampen least US$1 a barrel compared with shipments allies including Russia. OPEC+, as the wid-
any requests for extra barrels, traders said. loading in September, according to traders. er group is known, meets to assess supply
policy next week.
Global crude prices are headed in July for Read also: Oil rallies as US crude exports
their first back-to-back monthly loss since reach record, stockpiles fall
late 2020, as investors attempt to price in
the risks of a US recession, tighter monetary
policy, and China’s repeated efforts to tame
Covid-19. Despite the drop, the oil market’s
physical signals remain robust for now, with
Saudi Aramco set to release its official selling
prices for September next week.
Some Asian processors have started to
mull a reduction in operating capacity from
September, after running at maximum rates
in recent months following the Ukraine
war, which upended trade flows and helped
boost gasoline prices to a record. Any pull-
back would carry the potential to soften
crude oil demand in the coming months.
The bullish momentum for Middle
Eastern crude is likely to reach a turning
point next month for October-loading car-
goes, traders who buy and sell those bar-
rels said, citing the marked decline in re-
(July 27): Glencore Plc, the mining and Mining giant Japan has been struggling with strained
commodity trading giant, agreed to sup- Glencore strikes electricity supplies and high demand dur-
ply coal to a Japanese customer at one of ing a recent heat wave. Nippon Steel, which
the highest prices ever paid by the nation, one of Japan’s uses fuel to power its industrial sites and
threatening to further accelerate inflation. most expensive supplies electricity to Japan’s grid, earlier
ever coal deals this month purchased the country’s most
Nippon Steel Corp agreed on an annu- expensive ever natural gas shipment.
al supply deal through March with Glen- BY TSUYOSHI INAJIMA,
core for power plant coal at US$375 per STEPHEN STAPCZYNSKI & MASUMI SUGA Glencore is the world’s top coal shipper
tonne, according to people with knowledge and profits from the power-plant fuel are
of the deal, who asked not to be identi- Bloomberg at an all-time high. The resource giant is
fied because the information is private.The on course for a record 2022, as it cashes
agreement is three times more expensive BLOOMBERG in on soaring prices and volatility.
than similar deals done last year, and is
likely one of the costliest coal contracts The Glencore deal may be used as the
ever signed by a Japanese company, one benchmark price for other annual supplies
of the people said. by thermal coal users in Asia, the people
said. That will boost the cost to generate
Spokespeople for Glencore and Nippon electricity, and threatens to increase power
Steel declined to comment. bills for businesses and households.
Global competition for coal and natu- Australian Newcastle coal futures closed
ral gas is escalating, as power generators at US$410.45 per tonne on Tuesday on
move to secure additional fuel shipments ICE Futures Europe, and touched a re-
amid an energy crunch. Utilities are curb- cord earlier this year. European coal futures
ing imports from Russia due to the war in for next year rallied to an all-time high on
Ukraine, tightening the amount of available Tuesday, as Russia threatens to curb gas
supply and sending prices surging. supplies to the continent.
t h u r s d a y j u LY 2 8 , 2 0 2 2 27 T h e E d g e C E O m o r n i n g b r i e f
world
(July 27): Google parent Alphabet Inc on Google results ing FactSet estimates of US$40.15 billion.
Tuesday posted quarterly sales close toWall avoid disaster, “Google is relatively well positioned
Street targets, sending shares up on relief with search ads
that the world’s biggest seller of online ad- toppingWall to weather the rough waters that lie
vertising had avoided the deep disappoint- Street targets ahead,” Insider Intelligence analyst Eve-
ment of rivals including Snap. lyn Mitchell said.
by Nivedita Balu & Paresh Dave
Sales from Google’s search ad business Reuters In recent years, ad spending cuts have
actually topped expectations, while revenue hurt social media companies more than
fromYouTube ads, cloud computing and reuters Google. It brings in revenue through a
Alphabet’s “other bets” unit all came in greater variety of functions in the ad mar-
lower than anticipated, according to data Alphabet said the currency affected ket, and search ads can be easier for cus-
from FactSet and Refinitiv. sales growth by 3.7%, and that sales would tomers to generate since they often include
have been close to US$72 billion if not for just text.
Shares of Alphabet were up 3% in af- currency swings. About 55% of the com-
ter-hours trade after rising as much as pany’s sales come from outside the US. Clients sometimes prioritize search ads
4.3% following the results. given that they can drive better returns be-
The currency impact will be even great- cause the marketing is typically directed at
“Despite the underwhelming quarter, er in the third quarter, Alphabet Chief Fi- people actively searching for related items.
expectations were so low that investors nancial Officer Ruth Porat told reporters,
blew a sigh of relief,” said Jesse Cohen, according to CNBC. Sales from Google Cloud of US$6.3
senior analyst at Investing.com. billion missed analysts’ target of US$6.4
Google’s ad business accounted for 81% billion and YouTube ads also fell short,
Alphabet reported second-quarter revenue of the quarterly revenue, with search ads coming in at US$7.3 billion against es-
of US$69.69 billion, 13% higher than the generating US$40.69 billion in sales, beat- timates of US$7.5 billion, according to
year-ago period, and nearly in line with the av- FactSet data.
erage expectation of US$69.88 billion among
investment researchers tracked by Refinitiv. Overall profit was US$16 billion, or
US$1.21 per share, compared with the
The company also barely missed sales ex- average estimate of US$1.29 per share.
pectations in the first quarter. It last missed Alphabet’s profit tends to be unpredict-
estimates in consecutive quarters in 2015. able due to sporadic gains or losses — at
least on paper — in the stakes it holds in
Rising wages as well as rising prices of many start-ups.
fuel and other items have forced some ad Read the full story
buyers this year to pare marketing, includ- Read also:
ing even ads on internet services such as Texas Instruments’ rosy forecast
Google that served as an essential link to counters fears of slowdown
consumers during pandemic lockdowns. Megacap tech earnings have investors
looking past the Fed decision
Last week, Snap Inc and Twitter Inc
posted disappointing quarterly results,
heightening concerns about the slowdown
in ad spending. Snap shares plunged 25%
following its results.
Big US multinationals including Alpha-
bet also are increasingly bringing in less
cash when converting foreign revenue be-
cause of the strong dollar.
Microsoft, Alphabet results spark rally in megacap stocks
(July 27): A strong outlook from Micro- by Medha Singh ter and Snap — suggests the economic
soft Corp and resilient Google ads sales Reuters outlook may not be quite so bleak as many
from Alphabet sparked a relief rally on are anticipating,” said Stuart Cole, head
Wednesday in heavyweight technology “Both tech giants (Alphabet and Mi- macroeconomist at Equiti Capital.
and growth shares that have powered the crosoft) just missed on earnings, but both
stock market for the past decade. maintained very upbeat outlooks; that was Meta shares rose 2.4%, while Apple
enough for the FOMO gnomes,” said Jef- Inc and Amazon.com Inc, which are slat-
Better-than-expected Google ad sales frey Halley, analyst at Oanda, explaining ed to post reports on Thursday, firmed
sent Alphabet shares 3.5% higher in pre- the motivation behind the rally. 2.5% and 2%, respectively.
market trading as the largest online ads
seller appeared better positioned to with- All eyes will now be on ad revenue at That would conclude results from the
stand a recession compared to smaller Facebook owner Meta Platforms due later largest US firms — Apple, Microsoft, Al-
rivals. in the day after disappointing results from phabet and Amazon — which together
Twitter Inc and Snapchat’s owner Snap Inc account for nearly a quarter of the weight
Microsoft rose 3.8% after the com- last week sparked a selloff in social media in the benchmark S&P 500 index.
pany said it targets double-digit growth and ad tech firms.
in fiscal revenue, easing worries about An interest rate decision by the Fed-
the impact of soaring prices and slowing “The fact that Google has bucked the eral Reserve later in the day will be piv-
growth, even as it missed estimates for trend of lower spending on advertising busi- otal for rate-sensitive growth stocks.The
fourth-quarter results. ness — which has impacted the likes ofTwit- central bank is expected to raise rate by
75 basis points.
t h u r s d a y j u LY 2 8 , 2 0 2 2 28 T h e E d g e C E O m o r n i n g b r i e f
world
Credit Suisse tries
a new CEO after
US$1.7 bil loss
by Marion Halftermeyer South Korea in a statementWednesday. Similar transac-
Bloomberg probes US$3.4 bil tions worth 2.5 trillion won were detected
crypto-linked FX at 11 branches of Shinhan Bank between
(July 27): Credit Suisse Group AG replaced its February 23, 2021 and July 4, 2022, it said.
embattled chief executive officer (CEO) and said transactions
it would embark on a new turnaround plan just Yonhap reported last week that the two
nine months after the last one, as the Swiss bank by Hooyeon Kim banks were involved in unusual transactions
indicated it aims to slash the size of its investment Bloomberg worth 1.8 trillion won. Financial regulators
bank in the face of mounting losses. have been looking into whether the trans-
(July 27): South Korea’s Financial Super- actions had links to money laundering or
The firm tapped asset-management head Ul- visory Service is probing US$3.4 billion currency speculation using crypto assets.
rich Koerner to be CEO starting next week, re- worth of “abnormal” foreign-exchange Some of the transactions involved crypto
placingThomas Gottstein,who is resigning after a transactions at two of the country’s largest exchanges, a senior FSS official said last
two-year tenure marked by scandal and huge loss- commercial banks for possible links to il- week.
es.The firm, which posted a larger-than-expect- legal crypto-related activities.
ed 1.59 billion franc (US$1.65 billion) second The FSS on July 1 required all banks
quarter loss, said the review will include cutting Unusual transactions totaling 1.6 tril- to conduct an internal review on all sizable
at least another one billion francs of costs and lion won (US$1.3 billion) took place at five overseas transfers as well as any suspicious
evaluating its securitised products trading unit. branches of Woori Bank between May 3, transactions related to cryptocurrencies that
2021 and June 9, 2022, the regulator said occurred in 2021 and the first half of this
Chairman Axel Lehmann is seeking to steer year, the statement said. The banks will
the bank back to profitability — and stability — need to submit a report by end of July.
after scandals such as the blow-up of Archegos
Capital Management and Greensill Capital erod- The information will be shared with the
ed investor confidence, weakened key businesses, nation’s tax office and the prosecutors of-
and prompted an exodus of talent. The Swiss fice, the FSS said.
lender has changed its entire executive team and
half its board of directors in the past 18 months Cathie Wood dumps Coinbase shares
in an effort to move past the crises. for first time this year
“Since Mr Gottstein was appointed CEO by Abhishek Vishnoi Coinbase’s Chief Legal Officer Paul
in Feb 2020, Credit Suisse shares have de- Bloomberg Grewal said on Twitter “we are confident
clined by over 60%, materially underperform- that our rigorous diligence process — a pro-
ing peers,” Citigroup analysts wrote in a note (July 27): Funds controlled by Cathie cess the SEC has already reviewed — keeps
to investors. “While Mr Gottstein inherited a Wood dumped Coinbase Global Inc’s securities off our platform, and we look
number of problems, the way in which the firm stock for the first time this year, as the the forward to engaging with the SEC on the
reacted to these and the subsequent strategy largest US crypto exchange faces a probe. matter.”The SEC declined to comment.
adopted has left the bank in a weaker position
with significant franchise erosion across all divi- Three Ark Investment Management Ark was the third-biggest shareholder
sions, and most notably the investment bank.” LLC funds sold slightly over 1.41 million of the company, holding about 8.95 mil-
shares, which were worth about US$75 lion shares as of June-end, according to
The share decline under Gottstein is the million as of Tuesday’s close, according Bloomberg-compiled data. It has largely
worst among major global banks in that period, to Ark’s daily trading data compiled by been buying shares of the platform since
with the stock still trading near record lows. Bloomberg. The firm’s flagship Ark In- its debut in 2021.
The cost of insuring the firm’s bonds against novation ETF sold 1.13 million shares.
default soared to the highest since 2009 ear- Ark Investment Management has lost
lier this month. Shares of Coinbase Global lost about almost half of its assets under manage-
a fifth of their value Tuesday.They rose ment since December, and its flagship
The stock fluctuated between losses and about 4% in pre-market tradingWednes- Ark Innovation ETF has plunged 54%
gains in Zurich trading, and was down 0.4% day, and are down about 79% this year. in 2022 amid concerns that global mon-
as of 11:34am. etary tightening will cap growth stock
Coinbase is facing a US probe into valuations and tip the economy into a
The firm has spent the past three years whether it improperly letAmericans trade recession. Wood is now closing one of
mired in scandals — starting with a spying fi- digital assets that should have been reg- her exchange-traded funds for the first
asco that led to Gottstein taking the reins from istered as securities, according to people time ever.
TidjaneThiam — that has left it floundering at familiar with the matter.
a time when many rivals have seized on active
markets to thrive. Now with inflation fears and
the war in Ukraine spurring more turbulence,
Credit Suisse losses have totalled almost four
billion francs in the past three quarters.
Read the full story
t h u r s d a y j u LY 2 8 , 2 0 2 2 29 T h e E d g e C E O m o r n i n g b r i e f
world
news In brief
Reuters
After cannabis, Thailand takes steps Powerful 7.1 earthquake strikes Philippines; at least 5 dead
to allow casinos to operate VIGAN, Philippines (July 27): A powerful 7.1 magnitude earthquake struck the
northern Philippine island of Luzon on Wednesday, killing at least five people,
BANGKOK (July 27): After decriminalizing damaging buildings and sending strong tremors through the capital, Manila. At
cannabis, Thailand is now considering least 64 people were injured and 173 buildings damaged, officials said, many in
casinos to attract foreign money and lure Abra province, just 11km (six miles) from the epicentre of the quake. Over 200
more tourists to galvanize its pandemic- aftershocks have been recorded in the area, according to the state seismology
hit economy. A panel of Thai lawmakers agency, and 58 landslides were also reported in the aftermath. “Despite the sad
submitted a report on Wednesday to reports about the damages caused by the earthquake, we are assuring quick
Parliament, recommending that the response to those in need and affected by this calamity,” President Ferdinand
government issue a decree allowing Marcos Jr said on Facebook. The quake hit close to the Marcos family’s political
“entertainment complexes” that include stronghold. — Reuters
legal casinos to be built in key cities
across the country. The proposal comes as Read the full story
Thailand seeks to revive its all-important
tourism industry, a key to rebooting the Singapore extends stay of former India in talks for Monkeypox vaccine
country’s economy. The blueprint, if Sri Lanka president Rajapaksa as global outbreak spreads
adopted, could help Thailand generate NEW DELHI (July 27): India has started
billions of dollars from foreign investors, COLOMBO/SINGAPORE (July 27): discussions with vaccine makers for
travellers and Thai gamblers — who Singapore has permitted former Sri developing a monkeypox vaccine, should
would otherwise spend gaming money in Lankan president Gotabaya Rajapaksa to the need arise, a senior government
neighbouring countries, according to the stay in the island republic for an additional official said, as cases rise globally. “We
panel. The proposal for casinos comes 14 days, two sources familiar with the are already engaging with the potential
amid Thailand’s broader move toward a matter told Reuters on Wednesday. players,” said Vinod Kumar Paul, member
more-liberal legal landscape. Last month, A short-term visit pass issued when of government think tank NITI Aayog
Thailand became the first country in Asia Rajapaksa arrived on a private visit and head of the national task force on
to decriminalize cannabis and first in two weeks ago has been extended, Covid-19. “As you know, we have a strong
Southeast Asia to move toward legalizing two separate sources in Colombo and presence of our vaccine capacity, so
same-sex unions. — Bloomberg Singapore, both with knowledge of the that’s also under the government’s active
matter, told Reuters. Rajapaksa is now consideration.” The South Asian nation has
Australian inflation speeds to 21-year able to stay in Singapore until Aug 11. The tightened its nationwide surveillance, and
high, peak still to come Immigration and Checkpoints Authority those with symptoms should get tested
in Singapore did not respond to a request for the disease, which is “imminently
SYDNEY (July 27): Australian consumer for confirmation on the extension of stay. treatable”, Paul said. The World Health
price inflation sped to a 21-year high Rajapaksa landed in Singapore on July Organization declared the outbreak a
last quarter, and is likely to accelerate 14, a day after fleeing his crisis-ridden public health emergency of international
even further as food and energy costs country via Maldives and following a concern in a controversial and divided
explode, stoking speculation interest popular uprising that forced him to resign ruling on Saturday. So far, India has four
rates will need to more than double to as president. At the time, the Singapore confirmed monkeypox cases. — Bloomberg
bring the outbreak under control. The government said he had not been granted
gloomy report comes just a day before asylum, and was in the country on a Read also: Understanding Monkeypox
Treasurer Jim Chalmers is due to update private visit. — Reuters and how outbreaks spread
the previous government’s budget
forecasts, and he is already warning that Read the full story
inflation would get worse before it gets
better. Data from the Australian Bureau of
Statistics on Wednesday (July 27) showed
the Consumer Price Index (CPI) jumped
1.8% in the June quarter, just short of the
market forecast of 1.9%. The annual rate
picked up to 6.1% from 5.1%, the highest
since 2001, and more than twice the pace
of wage growth. — Reuters
Read the full story
t h u r s d a y j u LY 2 8 , 2 0 2 2 30 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 3,824.0037.00 OIL US$ 104.34-0.06 RM/USD 4.4580 RM/SGD 3.2133 RM/AUD 3.0972 RM/GBP 5.3788 RM/EUR 4.5220
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
Metronic Global Bhd 79.30 0.030 0.130 6.49 35.7
Sapura Energy Bhd 69.80 0.000 0.045 -10.00 719.1
Serba Dinamik Holdings Bhd 59.80 0.000 0.110 -68.57 408.1
My EG Services Bhd 59.70 -0.010 0.745 -30.37 5,502.2
Umedic Group Bhd 48.90 0.050 0.490 0.00 183.2
Cypark Resources Bhd 46.50 0.030 0.445 -51.10 262.0
Dagang NeXchange Bhd 43.80 0.015 0.785 3.29 2,477.7
MMAG Holdings Bhd 31.50 0.000 0.040 -46.67 68.1
Top Glove Corp Bhd 31.40 0.005 0.995 -61.58 7,967.2 World equity indices
Bintai Kinden Corp Bhd 30.20 0.000 0.120 -44.19 102.3
Jade Marvel Group Bhd 23.80 -0.005 0.850 28.79 278.8 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%)
SMTrack Bhd 22.70 0.005 0.065 -65.79 53.2 (%) INDONESIA 6,898.22 26.68 0.39
DOW JONES 31,761.54 -228.50 -0.71 JAPAN 27,715.75 60.54 0.22
Velesto Energy Bhd 22.30 0.005 0.085 -29.17 698.3 KOREA 2,415.53 2.57 0.11
PHILIPPINES 6,236.76 13.76 0.22
TWL Holdings Bhd 20.40 0.000 0.060 20.00 221.2 S&P 500 3,921.05 -45.79 -1.15 SINGAPORE 3,205.14 13.02 0.41
TAIWAN 14,921.59 114.81 0.78
ZEN Tech International Bhd 20.00 -0.005 0.045 -60.87 36.4 NASDAQ 100 12,086.90 -241.51 -1.96 THAILAND 1,576.41 23.23 1.50
VIETNAM 1,191.04 5.97 0.50
Widad Group Bhd 15.60 0.000 0.350 -4.11 963.4 FTSE 100 7,337.52 31.24 0.43
Source: Bloomberg
Bina Puri Holdings BHD 14.50 0.005 0.045 0.00 71.9 AUSTRALIA 6,823.23 15.96 0.23
Mestron Holdings Bhd 13.80 0.005 0.345 1.47 321.0 CHINA 3,275.76 -1.68 -0.05
NWP Holdings Bhd 13.60 0.000 0.255 4.08 134.2 HONG KONG 20,670.04 -235.84 -1.13
Ageson Bhd 13.40 0.070 0.550 7.06 171.4 INDIA 55,816.32 547.83 0.99
Data as compiled on Jul 27, 2022 Source: Bloomberg Data as compiled on Jul 27, 2022
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)
Nexgram Holdings Bhd 0.010 100.00 516.1 0.00 44.2 AT Systematization Bhd 0.010 -33.33 854.6 -66.67 60.0
China Automobile Parts 0.015 50.00 10.0 0.00 20.4 Pasukhas Group Bhd 0.015 -25.00 2,958.1 -40.00 28.6
Sanichi Technology Bhd 0.030 50.00 889.3 20.00 42.1 Alam Maritim Resources Bhd 0.030 -14.29 791.5 20.00 46.0
Metronic Global Bhd 0.130 30.00 79,317.7 6.49 35.7 Dolphin International Bhd 0.030 -14.29 4,556.1 -57.14 40.1
Mlabs Systems Bhd 0.025 25.00 370.0 -16.67 36.2 Kamdar Group M Bhd 0.155 -13.89 0.2 -16.22 30.7
JOE HOLDING BHD 0.025 25.00 1,745.7 -28.57 76.5 Concrete Engineering 0.850 -12.82 61.3 -2.30 63.4
Seal Inc Bhd 0.260 23.81 272.7 -13.33 73.6 LKL International Bhd 0.040 -11.11 2,897.3 -42.86 38.9
XOX Networks Bhd 0.030 20.00 124.2 0.00 34.1 Trive Property Group BHD 0.045 -10.00 145.1 50.00 56.9
Ea Technique M Bhd 0.030 20.00 509.1 -62.50 15.9 ZEN Tech International Bhd 0.045 -10.00 19,984.2 -60.87 36.4
Selangor Dredging Bhd 0.505 17.44 2.3 -9.01 215.2 Farlim Group BHD 0.230 -9.80 16.0 -8.00 35.2
Fast Energy Holdings Bhd 0.035 16.67 2,702.0 -63.16 25.8 Lambo Group BHD 0.050 -9.09 149.0 -41.18 77.0
XOX Technology Bhd 0.035 16.67 368.2 -30.00 31.3 Catcha Digital Bhd 0.180 -7.69 314.0 12.50 24.2
MQ Technology Bhd 0.035 16.67 2,645.9 -30.00 43.8 SerSol Bhd 0.140 -6.67 1,016.1 -35.19 76.1
Khee San BHD 0.115 15.00 0.2 -17.86 15.8 Sealink International Bhd 0.075 -6.25 151.6 -46.43 37.5
Ageson Bhd 0.550 14.58 13,444.5 7.060 171.4 Ahmad Zaki Resources Bhd 0.165 -5.71 37.0 -26.67 98.4
Reach Energy Bhd 0.040 14.29 12,061.8 -33.33 43.9 Sunsuria Bhd 0.330 -5.71 262.3 -21.43 295.7
G3 Global Bhd 0.040 14.29 288.5 -50.00 116.1 ILB Group Bhd 0.415 -5.68 9.9 10.67 78.4
Bina Puri Holdings BHD 0.045 12.50 14,538.0 0.00 71.9 Sin Heng Chan Malaya Bhd 0.345 -5.48 11.2 -23.33 101.0
TAS Offshore Bhd 0.180 12.50 11.0 -29.41 31.5 Paos Holdings BHD 0.265 -5.36 14.0 -17.19 48
Umedic Group Bhd 0.490 11.36 48,946.2 0.00 183.2 OCR Group Bhd 0.090 -5.26 260.4 -37.93 83.5
Data as compiled on Jul 27, 2022 Source: Bloomberg Data as compiled on Jul 27, 2022 Source: Bloomberg
Top gainers (ranked by RM) Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)
Nestle Malaysia Bhd 134.50 0.400 79.3 0.22 31,540.3 Panasonic Manufacturing 26.040 -0.320 6.9 -9.90 1,581.8
Hong Leong Bank Bhd 21.08 0.400 675.9 13.21 45,695.5 Genting Plantations Bhd 6.300 -0.160 567.5 -4.43 5,652.3
Malaysian Pacific Industries 30.90 0.400 365.8 -37.40 6,145.9 Concrete Engineering 0.850 -0.125 61.3 -2.30 63.4
Petronas Gas Bhd 16.94 0.300 230.9 -5.33 33,519.7 Dutch Lady Milk Industries 32.900 -0.100 1.5 -1.85 2,105.6
Petronas Dagangan Bhd 22.80 0.300 320.2 10.68 22,650.8 Kesm Industries Bhd 7.000 -0.100 8.7 -43.00 301.1
AEON Credit Service M Bhd 14.40 0.260 42.2 6.11 3,676.4 Khind Holdings Bhd 2.820 -0.080 16.8 -25.98 113.0
UWC BHD 3.91 0.250 3,115.4 -37.04 4,306.3 YNH Property Bhd 3.430 -0.080 69.2 29.43 1,812.7
ViTrox Corp Bhd 7.40 0.200 356.5 -25.70 6,990.4 DKSH Holdings Malaysia Bhd 4.110 -0.080 18.8 -14.38 648.0
Berjaya Food Bhd 3.98 0.180 233.9 85.12 1,412.2 United Plantations BHD 14.200 -0.080 280.8 3.60 5,868.9
Frontken Corp Bhd 2.67 0.170 4,584.7 -33.25 4,198.3 Tong Herr Resources Bhd 2.900 -0.070 7.0 -0.34 445.2
Hong Leong Financial Group 19.20 0.160 138.9 10.73 21,988.7 IHH Healthcare Bhd 6.370 -0.060 3,635.4 -13.22 56,083.9
Greatech Technology Bhd 3.75 0.150 5,215.7 -44.28 4,695.5 Westports Holdings Bhd 3.510 -0.060 2,528.0 -13.33 11,969.1
Fraser & Neave Holdings Bhd 21.12 0.140 129.3 -14.63 7,746.4 Pimpinan Ehsan Bhd 1.200 -0.050 64.4 -17.81 83.0
DiGi.Com Bhd 3.51 0.120 2,462.3 -19.50 27,290.3 Sarawak Oil Palms Bhd 2.600 -0.050 1,163.1 11.75 2,314.4
Rapid Synergy Bhd 13.10 0.120 10.5 31.66 1,400.3 CI Holdings Bhd 2.760 -0.050 8.2 -3.16 447.1
Chin Hin Group Bhd 4.60 0.120 1,744.4 76.25 4,069.7 OM Holdings Ltd 1.900 -0.050 23.0 -32.86 1,403.4
Kluang Rubber Co Malaya BHD 4.06 0.120 2.7 2.53 253.2 KKB Engineering BHD 1.350 -0.040 13.7 -10.60 389.8
Advanced Packaging 2.74 0.110 2.0 5.38 54.1 Signature International Bhd 1.380 -0.040 348.6 0.00 405.0
Hong Leong Industries Bhd 8.98 0.100 34.4 -2.18 2,868.9 Scientex BHD 3.260 -0.040 797.5 -31.94 5,056.3
Kobay Technology BHD 2.76 0.100 1,929.8 -54.23 894.7 LPI Capital Bhd 13.460 -0.040 9.5 -4.27 5,362.2
Data as compiled on Jul 27, 2022 Source: Bloomberg Data as compiled on Jul 27, 2022 Source: Bloomberg