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Published by pusatsumberkpt, 2021-12-28 03:00:52

EDGEcd67ad32-0ba0-4da5-a84a-8bfd6d4601de

EDGEcd67ad32-0ba0-4da5-a84a-8bfd6d4601de

AFTER A ROLLER-COASTER YEAR, HOW WILL 2022 FARE? p6

TUESDAY, DECEMBER 28, 2021 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 305/2021

CEOMorningBrief
HOME: Malaysia seeks UN climate adaptation funds amid deadly floods p2
Kenanga:Value stocks emerging amid broad sell-off; FBM KLCI year-end target at 1,654 points p8
Consortium led by Coastal Contracts’ JV secures RM4.5b gas conditioning plant contract in Mexico p12

Techna-X plans backdoor listing of capacitor tech unit p14
WORLD: Norway wealth fund CEO sees market weakness, inflation threat p24

THE EDGE FILE PHOTO

AirAsia’s Pestech to
RM975 mil cash call finance,
upgrade
undersubscribed and
by 14.87% operate
KLIA
Report on Page 4. Aerotrain

project for
RM743m

Report on Page 10

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TUESDAY, DECEMBER 28, 2021 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 305/2021

CEOMorningBrief

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 2 T h e E d g e C E O m o r n i n g b r i e f

the edge ceo morning brief published by publisher + ceo . Ho Kay Tat
editor-in-chief . Kathy Fong
Read from desktop or mobile device. (266980-X) chief commercial officer . Sharon Teh
You can print in A4 to read. Set print chief operating officer . Lim Shiew Yuin
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[email protected] Selangor, Malaysia

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Malaysia seeks a National Adaptation Plan by the end Floods: Death
UN climate of next year. toll at 48, five still
adaptation missing, says IGP
funds amid The plan will focus on areas such as wa-
deadly floods ter, agricultural, and food security, public Bernama
health, forestry, and infrastructure, Zaini
by Rozanna Latiff said in a written response. KUALA LUMPUR (Dec 27): The
Reuters death toll due to the floods in the
“The ministry also has long-term plans country is at 48 people thus far, while
KUALA LUMPUR (Dec 27): Malaysia to request for climate funds that can assist five people are still missing, said In-
is seeking US$3 million (about RM12.55 in implementing programs addressing the spector-General of PoliceTan Sri Acryl
million) from the UN Green Climate impact of climate change,” he said. Sani Abdullah Sani (pictured).
Fund (GCF) to develop a national plan
to adapt to climate change, the environ- Zaini did not give specific details on the He said Selangor remained the
ment ministry said last week, amid deadly adaptation plan, or how much the govern- state with the highest number of
floods that have displaced nearly 70,000 ment would need to implement it. deaths, with 25 victims, followed by
people this month. Pahang (20) and Kelantan (three).
The GCF funds are the first time the
The funds requested are paltry relative Malaysian government has sought any “The victims in Selangor involved
to the amount the country has pledged to money for climate adaptation, which are 17 men and eight women and in Pa-
spend on flood mitigation efforts, though policies that a country puts in place to hang the victims were 14 men, four
experts say the plan’s implementation deal with climate change effects. women and two boys,” he said in a
would likely cost much more. statement on Monday (Dec 27).
The funds pale in comparison to the
Since Dec 18, torrential rain has caused RM9.8 billion for flood mitigation projects In Kelantan, the victims were two
severe flooding that killed at least 48 peo- such as building water barriers, catchment men and a girl.
ple in eight Malaysian states, prompting areas, and deepening rivers that Zaini said Read also:
calls for the government to improve its Malaysia has set aside already. Agencies underTransport Ministry
preparedness for extreme weather events. told to prepare for second wave of
“Adaptation will take much more funds floods Click here
In response to questions sent to the compared to mitigation because we need
Environment and Water Ministry on Dec to overhaul our urban planning, all these Floods: Number of evacuees in four
20 on Malaysia’s approach to climate ad- costly infrastructure projects,” said Ili Na- states continues to drop as of Dec 27
aptation, Secretary-General Datuk Seri diah Dzulfakar, a co-founder of climate evening Click here
Zaini Ujang replied that the ministry will activist group Klima Action Malaysia.
request the GCF funds to help develop
A draft adaptation plan should exam-
Zahid Izzani/the edge ine the interaction of flooding or droughts
on food security and crop yields and the
A view of the flash flood at Taman Sri Muda, need for energy-efficient healthcare ser-
Seksyen 25, Shah Alam on Dec 21. vices with strong communication systems,
she said.

In 2018, then-environment minister
Yeo Bee Yin proposed a so-called Cli-
mate Change Act along with an adapta-
tion strategy but a formal plan was never
submitted to the parliament and progress
faltered amid political turmoil in 2020.

Malaysia typically has flooding on its
eastern coasts that are exposed to the
northeast monsoon between October
and March.

But authorities were caught off-guard
by unusually heavy rainfall and flooding
this month in highly-populated urban are-
as in its western and central regions, which
some experts say were worsened by poor
drainage and overdevelopment.

TUESDAY DECEMBER 28, 2021 3 THEEDGE CEO MORNING BRIEF

TUESDAY DECEMBER 28, 2021 4 THEEDGE CEO MORNING BRIEF

HOME

KUALA LUMPUR (Dec 27): AirAsia AirAsia’s tal RCUIDS available for subscription.
Group Bhd’s RM974.5 million cash call RM975 mil Successful applicants of the RCUIS
received valid acceptances for 1.11 billion
or 85.13% of the total available redeem- cash call will also get one warrant for every two
able convertible unsecured Islamic debt undersubscribed RCUIDS that they subscribed to.
securities (RCUIDS) at a nominal value
of 75 sen apiece. by 14.87% The RCUIDS and warrants are expect-
ed to be listed and quoted on Bursa Ma-
In a bourse filing on Monday (Dec 27), BY SEAH EU HEN laysia’s Main Market on Friday (Dec 31),
AirAsia said it had received a total of 1.11 theedgemarkets.com the filing showed.
billion in valid acceptances and excess ap-
plications for its RCUIDS as at 5pm last scribed by its joint underwriters, RHB In- This closing for acceptance of the
Monday (Dec 20). vestment Bank and Kenanga Investment RCUIDS would net AirAsia approx-
Bank Berhad, based on the underwriting imately RM829.61 million based on
The filing revealed that there were 193.2 agreement signed between AirAsia and the 75 sen per RCUIDS for 1.11 billion
million RCUIDS or 14.87% of the total banks on Nov 18. RCUIDS, based on a back-of-the-en-
available RCUIDS that were not sub- velope calculation.
scribed by its entitled shareholders. AirAsia’s two largest shareholders Tan
Sri Tony Fernandes and Datuk Kamaru- The RCUIDS issuance, coupled with
The aviation group added that the total din Meranun via their 50-50 joint- other fundraising activities that was tak-
number of excess RCUIDS available for ly-owned special purpose vehicle Sky Ac- en by the aviation group such as the
allocation was 281.76 million. cord Sdn Bhd (SASB) have also fully RM500 million Danajamin-guaranteed
subscribed to 343.03 million loan secured in October, as well as a pri-
“In view that the total number of ex- RCUIDS, represent- vate placement of 470.21 million shares
cess RCUIDS applied for was 88,553,443, ing 26.40% of the to- which raised RM336.46 million in March,
the Board has decided to allot the excess would see the aviation group raise around
RCUIDS to all entitled shareholders and/ RM1.67 billion.
or their renouncee(s) or transferee(s) who
have applied for the excess RCUIDS in AirAsia had planned to raise
full,” the filing said. between RM2 billion and

Meanwhile a total of 193.2 million RM2.5 billion via a com-
unsubscribed RCUIDS will be fully sub- bination of equity and
debt to finance, among
others, working capital

requirements of the group.
For the six months end-
ed June 30, 2021, AirAsia
managed to narrow its losses to
RM1.35 billion from RM1.8 bil-
lion a year earlier, while revenue
shrank to RM686.82 million from
RM2.49 billion. Its cash balance
meanwhile dwindled to RM235.61
million from RM996.12 million.
AirAsia shares were flat at 81.5
sen on Monday, giving the aviation
group a market capitalisation of RM3.16
billion.

BNM issues exposure draft on climate risk management
for financial institutions

KUALA LUMPUR (Dec 27):Bank Nega- Bernama and to identify potential challenges in
ra Malaysia (BNM) has issued an exposure areas such as design of climate scenarios,
draft on climate risk management and sce- Taxonomy (CCPT),Value-based Interme- coverage of financial exposures, method-
nario analysis, which sets out the proposed diation Financing and Investment Impact ology, level of granularity, and data gaps.
requirements and guidance on climate risk Assessment Framework (VBIAF), as well
management and scenario analysis. as the VBIAF Sectoral Guides,” the cen- The central bank invites written feed-
tral bank said on its website on Monday back on the proposed requirements, in-
It said the proposed specific require- (Dec 27). cluding suggestions on areas to be clar-
ments and expectations are to ensure that ified and alternative proposals that the
financial institutions strengthen the man- BNM also said that with respect to sce- bank should consider.
agement of financial risks stemming from nario analysis and stress testing, it will be
climate change to enhance the resilience providing additional guidance to the finan- Responses must be submitted to BNM
of the financial sector against climate-re- cial institutions in a forthcoming discussion at [email protected] by
lated risks and to facilitate an orderly paper on Climate Change Stress Test, set March 31, 2022.
transition to a low-carbon economy. to be released in the first quarter of 2022.
The exposure draft can be accessed
“This exposure draft complements The discussion paper is intended to so- at https://www.bnm.gov.my/docu-
the Climate Change and Principle-based licit feedback to gauge industry readiness ments/20124/938039/ED_Climate_
Risk.pdf

TUESDAY DECEMBER 28, 2021 5 THEEDGE CEO MORNING BRIEF

Malaysia ready to become a
global leader in Islamic fintech

Mahadhir Aziz
CEO of MDEC

The Islamic fintech sector is undergoing global market, in line with MDEC’s vision for Ma- changes the way you buy, save, sell and redeem
rapid digitalisation, matching the speed laysia to be an Islamic fintech hub.” physical gold. With more than 200,000 users
of the digital transformation of the global currently, HelloGold allows users to diversify their
finance industry. Game-changing innovators investments into gold through a user-friendly app.
According to Dinar Standard’s Global Islamic Some of the key innovators in the field will be pres-
Fintech Report 2021, the Islamic fintech market is ent to showcase their solutions at Expo 2020 Dubai. Forward-thinking Islamic crowdfunding platform
projected to grow to US$128 billion (RM542 billion) They include microLEAP, an Islamic and conventional Global Sadaqah also allows seamless contributions
by 2025. Last year, the Islamic fintech transaction peer-to-peer (P2P) microfinancing platform regu- to zakat or waqf campaigns, which are verified
volume within the Organisation of Islamic Coopera- lated by Securities Commission Malaysia (SC). The and approved by its in-house shariah team. Do-
tion (OIC) countries was estimated at US$49 billion. platform, which serves as an alternative financing nations are facilitated through multiple channels,
tool, is a Malaysian P2P operator that offers both including eWallet providers in Malaysia, Bitcoin
With its impressive growth in the Islamic fi- Islamic and conventional financing. and digital gold.
nance market, Malaysia is ready to capitalise on
and serve the global Islamic fintech market. The After launching in April 2020 with its Islamic Islamic digital investment management compa-
country ranks first in market maturity and is one P2P investments, microLEAP has experienced tre- ny WAHED Technologies provides access to a shari-
of the top five Islamic fintech markets based on mendous growth, raising RM2 million in 71 fund- ah-compliant robo-advisory portfolio. The platform
transaction volume. ing notes, 97% of which are Islamic. The platform currently serves more than 200,000 clients across
has also partnered with MDEC for the agency’s more than 100 customer countries, all of whom
Malaysia Digital Economy Corporation (MDEC), eBerkat campaign. can access a range of stocks and sukuk (Islamic
the country’s leading digital economy agency, will bonds), which the platform will automatically in-
be leading a delegation of 20 Malaysian companies Another Islamic fintech player set to break vest in according to the client’s specific risk profile.
to showcase their products and offerings as part of onto the global stage is TheNoor, the brainchild
the Digital Economy Week at Expo 2020 Dubai from of actress and entrepreneur Noor Neelofa Mohd By integrating multiple scientific disciplines, in-
Jan 9 to 15, 2022. The expo will provide a platform Noor. The app allows users to keep track of prayer cluding artificial intelligence (AI), machine learning
for home-grown industry leaders to display their times and listen to verses from the Quran. It also and cognitive science, Global Psytech has brought
solutions for the thriving Islamic fintech industry. functions as a Qiblah finder and as an eWallet. The- data analytics solutions to various industries. The
Noor recently partnered with Tabung Haji Travel & award-winning data tech company was incorpo-
“Islamic finance and fintech are seen as a cru- Services Sdn Bhd to offer shariah-compliant travel rated in 2017, and its flagship product, General Fi-
cial pillar within the 12th Malaysia Plan [12MP]. and holiday services. nancial Insights (GFI), acts as an alternative credit
They will not only drive a progressive, inclusive and risk assessment system.
sustainable society but also expand the country’s A multiple award-winning tech company, Hel-
export market,” says Mahadhir Aziz, CEO of MDEC. loGold, will showcase its extensive offerings in in- These local companies are ready to shine at
“Expo 2020 Dubai will set the stage for these Ma- vestable gold. Established in 2015, it is the world’s the Digital Economy Week at Expo 2020 Dubai by
laysia-based Islamic fintech innovators to reach a first shariah-compliant mobile application that bringing their expertise in this thriving financial
ecosystem to a global audience.

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 6 T h e E d g e C E O m o r n i n g b r i e f

home

After a roller-coaster year,
how will 2022 fare?

KUALA LUMPUR (Dec 28): The local by justin lim & sulhi khalid fundamental is good and should continue
equity market was expected to trend high- theedgemarkets.com to do well as the underlying demand for
er this year, in anticipation of corporate electronic products remains very strong.
earnings growth resumption following the Year to date, the FBM KLCI
unprecedented 2020 that was struck by a has contracted 5.73% Thong Pak Leng
global pandemic, the likes of which had RakutenTrade Sdn Bhd vice-president
never been experienced before. 1700 of equity research
1,627.21 We are cautious about the local equity market’s
However, contrary to expectations, 2021 outlook, given that prospects will be clouded
has turned out to be a roller-coaster ride for 1550 1,533.91 by several risks, including expected interest
the equity market, with the FBM KLCI, rate hike and a potential delay in economic
which started the year at 1,602.57 points (Jan 1400 Dec 27, 2021 recovery, as many economic activities have
4, 2021), settling at 1,533.91 on Dec 27, after Dec 31, 2020 been disrupted and will take time to recover.
being hammered by multiple headwinds.Year
to date, the benchmark index has contracted Compiled date: Dec 27, 2021, 5pm Further, we foresee that the market will
5.73%, compared with 1,627.21 points on Source: Bloomberg continue to be volatile amid growing fears
Dec 31, 2020.With just three days left before of new Covid-19 variants. As the market
the year comes to an end, the benchmark in- about whether the economy will rebound volatility is greater now, risks are also high-
dex is expected to remain in the red. strong enough from Covid-19’s impact. er. It is probably not the right timing for
long term buy unless the global market
Notably, the FBM KLCI also under- That, coupled with the looming global improves and becomes more stable.
performed its regional peers including Sin- rate hikes, especially from the US, we don’t
gapore,Thailand and Indonesia’s indices, think the climate will be favourable for the Following the intense hammering on the
which reported positive returns of 9.16%, equity market as a whole. local front given the news announced during
12.91% and 9.97%, respectively. Budget 2022, including stamp duty hike as
Other potential headwinds seen are pos- well as removal of the RM200 stamp duty
It was not just the reintroduction of lock- sibly underperforming corporate earnings cap, market sentiment is expected to remain
down measures in the middle of the year due and more political risks. There is also the negative over the near term. While valua-
to surging cases that dragged the equity mar- stamp duty hike on contract notes for the tions are cheap for KLCI, without a catalyst
ket’s performance in Malaysia.There were trading of shares on Bursa Malaysia.Against or resolution to the various headwinds, it is
political uncertainties as well as concerns over this backdrop, we see very few catalysts to be hard to see trends reversing in the near term.
new taxes introduced under Budget 2022 too. optimistic about the KLCI’s performance.
And after the Delta scare, Omicron emerged Cautious sentiment will also continue to
towards the end of the year and fears of new Nevertheless, in terms of trading themes, cloud the market as investors assess the po-
movement restrictions to counter the new it is a good time to relook into recovery play tential impact on corporate earnings under
variant shadowed the equity market. as the recent drawdown over the new Cov- the one-off prosperity tax (or Cukai Makmur).
id-19 variant Omicron presents a trading
As we head into 2022, how will the new opportunity for investors. Whether the KLCI trend upwards very
year fare? Here are some forecasts from much depends on the speed of economic
market watchers: In addition, companies with strong cash recovery and improvement in corporate
flow and willing to pay good dividends will earnings.
Geoffrey Ng remain on investors’ radar. Another theme
Fortress Capital Asset Management is the semiconductor sector. The sector’s Given the easing of Covid-19 restric-
Sdn Bhd director tions and booster-shot roll-outs brighten-
The local equity market will have to brace for ing the prospects of a durable economic
a tough climate next year as there are storm reopening, hence, we suggest investors can
clouds gathering on the horizon. Our view look into retail real estate investment trust
is that volatility will persist due to concerns (REIT) and consumer sectors.

co nt i nu es o n Page 7

TUESDAY DECEMBER 28, 2021 7 THEEDGE CEO MORNING BRIEF

HOME

FROM PAGE 6 FBM KLCI (at year end)

Danny Wong Teck Meng 1,796.81
Areca Capital Sdn Bhd chief executive
officer 1,692.51 1,690.58
Given that Malaysia’s economic recovery 1,641.73
has remained intact despite Omicron fears, 1,627.21
coupled with anticipated corporate earnings
improvements, it will be a better year for the 1,588.76
local bourse next year.
YEAR 1,862.80 1,727.99 1,796.81 1,895.18 1,730.68 1,684.58 1,533.91
While pandemic risk is still on the ta- HIGH 1,532.14 1,600.92 1,600.92 1,635.31 1,551.23 1,219.72 1,655.96
ble, this headwind is expected to be better YEAR 1,475.37
managed as over 97% of Malaysia’s adult LOW 2015 2016 2017 2018 2019 2020
population has completed their Covid-19 2021
vaccination, while the government is in the
midst of administering the booster shots to * As at Dec 27, 2021 Source: Bursa Malaysia
ward against the new Covid-19 variant. In
addition, there is availability of oral Cov- YTD market indices, highs and lows
id-19 treatment drugs that should be able
to cushion the downside risks. Close YTD 52-week 52-week
Index (Dec 27) Change (%) low high
Hence, we expect the local equity mar- Dow Jones Industrial Average 35,950.56
ket to stabilise going forward as the current Indonesia Jakarta Composite 6,575.44 17.46 29,856.30 36,565.73
weakness in the KLCI has fully priced in Singapore STI 3,104.24 9.97 5,735.47 6,754.46
some negative news including stamp duty South Korea KOSPI 2,999.55 9.16 2,832.04 3,273.54
hike on contract notes for trading of shares Thailand SET 1,636.50 4.39 2,762.60 3,316.08
on Bursa Malaysia and removal of tax ex- China Shanghai Composite 3,615.97 12.91 1,425.48 1,658.60
emption on foreign source income that was Japan Nikkei 225 28,676.46 4.11 3,312.72 3,731.69
announced during Budget 2022. Philippines PSE 7,254.80 4.49
Hong Kong HSI 23,223.76 23.85 26,638.28 30,795.78
Under the current market environment, Malaysia FBMKLCI 1,533.91 -14.72 4,525.86 5,802.64
we suggest a barbell strategy of exposure to -5.73 31,183.36
recovery-themed sectors like banking and 22,665.25 1,655.96
consumer, alongside a structural growth 1,475.37
play such as exports-related companies.
pressure if the government becomes more expected to grow strongly with pent-up
Banking stocks, the proxy to recovery socialistic in its policies, should the pandem- demand for elective surgeries and medical
play, are banking on the anticipated eco- ic worsen from here. Government-linked tourism, which were put on hold during
nomic recovery due to the reopening of companies may be tapped for social services the pandemic.
the domestic economy. Also, financial in- to help the rakyat (people) pull through this
stitutions are expected to benefit from a challenging period. Dr Afzanizam Abdul Rashid
potential rate hike next year. Bank Islam Malaysia Bhd chief economist
Moving into the second half, we expect With regard to economic prospects, the
For growth stocks, we recommend the the pandemic situation to improve and re- global economy in general would be bet-
technology sector as the prospects of tech- main under control, owing to higher vacci- ter in 2022 as we could see major central
nology companies remain intact given the nation rates globally, coupled with the suc- banks having embarked on the normalisa-
rising demand for semiconductor chips. cessful development of Covid-19 treatment tion of the extremely loose monetary poli-
pills. From thereon, markets should trend cy. For instance, the Fed has continued its
David Loh up gradually, with stronger earnings clari- tapering by cutting down its asset purchase
Affin Hwang Asset Management senior ty in 2023, anchored by a sustainable eco- programme from next year, while the Bank
portfolio manager nomic reopening and the absence of the of England has raised its benchmark rate
The new year looks to be one of two halves, prosperity tax, which is one-off. from 0.1% to 0.25%. These clearly sig-
with a wall of worries to overcome initially, nal that the economic condition is get-
before things pick up in the second half, For trading themes, banks are a natural ting better.
when investors will then price in better play on the rising interest rate cycle. Be-
growth prospects for the following year. sides margin expansion, asset quality will However, the downside risks linger and
improve as the economy strengthens. After continue to revolve around Covid-19, in
Continued pandemic worries aside, the a temporary suspension, most banks have particular the discovery of new strains and
US Federal Reserve’s (Fed) hawkish pivot resumed paying dividends, offering solid concerns over possible measures that will
to tame inflation is exacerbating the sit- yields.Valuation is attractive, especially for be put in place to curb the spread.
uation. The Fed’s decision to accelerate smaller banks that are trading at steep dis-
its tapering programme by hiking rates at counts to their book values. In addition, the supply bottleneck and
a faster pace will pull back liquidity and subsequent impact to inflation could poten-
exert pressure on emerging markets such We also see potential in healthcare (hos- tially disrupt the momentum of economic
as Malaysia. pital) stocks like IHH Healthcare Bhd, recovery. But overall, the economic condi-
which is a secular play on a rising ageing tion should see much more improvements
On top of that, there are political risks population trend and wider adoption of compared with this year.
due to the current ruling government’s ra- medical insurance. IHH’s earnings are
zor-thin majority.The market will be high-
ly volatile going into an election when it is
difficult to predict a clear outcome amid
the fractured political landscape.

Another risk would be further earnings

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 8 T h e E d g e C E O m o r n i n g b r i e f

home

Kenanga:Value stocks emerging amid broad
sell-off; FBM KLCI year-end target
at 1,654 points

KUALA LUMPUR (Dec 27): Kenanga by shazni ong “Its main appeal continues to be that
Research said an increasing number of val- theedgemarkets.com this sector enjoys secular growth from in-
ue stocks have emerged as evidenced by the creasing demand for tech equipment driven
negative returns in many sectors following “RHB Bank has the added appeal of be- by 5G development, electric vehicles (EVs),
the broad sell-off in 2021. ing one of the sector’s best dividend yielders and continuing adoption of remote work-
at 5%. As the only listed bank bidding for a ing and smart devices that keep evolving.
However, the research firm’s head Koh digital bank licence jointly with Boost, we
Huat Soon expects many among them to think it has a better than even chance of win- “That there is a demand-supply gap is
remain trapped in value given the lack of ning which might be an added catalyst when evident from the frequent reports of com-
catalysts and poor macro and regulatory the winners are announced in 1QCY22 (first ponent shortages which signal promising
environment weighing them down. quarter of calendar year 2022),” said Koh. order fulfilment activities across the entire
semiconductor chain in the months head-
He noted that sectors falling under this As for Alliance Bank, he said it had the ing into 2022,” he said.
category include property and construction. highest earnings upgrade post-results among
banks and could see the best earnings deliv- The research’s top pick is Kelington
“[For property], affordability issues wors- ery as economic reopening improves pros- Group Bhd, a prime beneficiary of semi-
ened by the adverse financial impacts of Cov- pects for small and medium enterprises conductor shortages as it has won multiple
id-19 on households and the supply overhang. (SMEs) where loan demand and credit ultra high purity (UHP) supply and con-
cost assumptions could positively surprise. struction contracts from several expand-
“[As for construction,] policy flip flops, ing wafer foundries in the region such that
high input costs and stretched government OPR to stay at 1.75% in 1H22 2021 marks the best year ever in terms of
finances adversely impacting margins and Meanwhile, Kenanga Research forecasts the order-book wins that exceeded RM1 billion.
may require financing models that shift the overnight policy rate (OPR) to stay at 1.75%
weight of risks to the private sector in fund- during the first half of the year (1H22) as Bank In addition, the firm highlighted Genting
ing mega infrastructure projects,” he said Negara Malaysia (BNM) sees risks to the Bhd, whose earnings are globally diversified
in a strategy report on Monday (Dec 27). downside from“threats of variants of concern”. with significant earnings derived from the US
and UK, would also benefit from a stronger
Despite the price-earnings ratio (PER) “On the yield curve, we expect to see US dollar amidst a recovery in patronage.
of the property and construction sectors the 10-year yield hover at 3.40% to 3.60% MGS to stay close to 3.60%
falling sharply from a year ago, the research reflecting the current high level of liquidity. Kenanga Research also expects Malaysia’s
firm maintained its “neutral” call for these It will remain so in at least the first half of proxy for the risk-free rate, namely the 10-year
two sectors. next year given that the statutory reserve Malaysian Government Securities (MGS) yield
requirement (SRR) will also remain stable to hover close to 3.60%, relatively unchanged
Sectors that could benefit from faster- at 2% and not raised till closer to end-2022. from 4QCY21 despite the USTreasury (UST)
than-expected economic reopening 10-year yield having fallen and potentially re-
Koh said sectors with value include oil and “As for the USTreasuries, we believe that maining below 1.50% throughout 1QCY22.
gas (O&G), real estate investment trusts the longer end yields will remain depressed
(REITs), consumer and gaming, as they as long as the US Federal Reserve continues According to the firm, it represents an ex-
could benefit from the faster-than-expect- to propagate expectations of raising the Fed panded 210 basis points (bps) spread above
ed pace of the economic reopening. funds rate and accelerate the taper. the UST 10-year that is over one standard
deviation (1SD) above mean, appropriately
“Dialog Group Bhd is one of our top “With OPR and local bond yields remain- so to reflect heightened emerging market
value picks as it trades at almost 30% dis- ing low in the near term, the investment land- risk in a tightening US monetary setting.
count to the sum of parts (SoP) of RM3.50. scape looks safe for yield stocks,” said Koh.
“On the risk-free rate of 3.60%, we
“With lockdowns easing, Petroliam US dollar to be strong in 2022, with then add an equity market risk premium
Nasional Bhd (Petronas)’s Refinery and some sectors to benefit of 3.10% which is 0.5SD above mean for
Petrochemical Integrated Development Kenanga Research foresees the US dollar the same reason of heightened emerging
(RAPID) facilities are expected to com- will be a strong currency in 2022 on the ex- market risk, the sum of which implies a
mence in the coming months, improving pectation of hikes in Fed funds rate from target PER of 14.9 times, which happens
prospects for its Pengerang Phase 3. 2022 onwards. to be at 0.5SD below mean.

“This coupled with a recovery in down- Koh pointed out that while a strong US “The risk variables upon which the tar-
stream activities provide ample growth for dollar versus the Malaysian ringgit may get PER is based reflect risk levels that are
the next two years at least,” he said. deter fund inflows and does not support li- higher than historical averages and so en-
quidity, exporters benefit, adding the prime hance the robustness of the valuation target.
Kenanga Research added the O&G sec- beneficiaries are technology, gloves and
tor, on which the firm has had an “over- plastic packaging manufacturers. “On FY23E earnings per share (EPS) of
weight” stance since the last quarter from the 111 sen therefore, we have our year-end target
view of demand boost and normalisation of He noted that besides the strong US for the FBM KLCI at 1,654 points,” said Koh.
output with the removal of work restrictions, dollar, Kenanga Research was also “over-
is also to benefit from the reopening theme. weight” on the tech sector as there were a Read also: Malaysia’s policy transition
number of positive factors that validate its raises risk of volatility in 2022 Click here
On a related note, the firm highlighted premium valuations.
that banks are also naturally beneficiaries
of the reopening theme, with its top picks
being RHB Bank Bhd and Alliance Bank
Malaysia Bhd.

TUESDAY DECEMBER 28, 2021 9 THEEDGE CEO MORNING BRIEF

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Pestech to finance, upgrade and operate
KLIA Aerotrain project for RM743m

by Adam Aziz
theedgemarkets.com

KUALA LUMPUR (Dec 28): Pestech commissioned in 1998 and has increasingly recently the JB-Singapore RTS Link,”
International Bhd has secured the Kuala suffered breakdowns over the years, having MAHB added.
Lumpur International Airport (KLIA) Aer- shuttled more than 300 million passengers
otrain project for RM742.95 million, which in its 23 years of service. In the meantime, Pestech will have to
involves the upgrade of the 1.2km automat- raise the necessary funding needed to exe-
ed people mover (APM) system at the air- In a statement on the contract award, cute the project’s development in the three
port, together with the Aerotrain’s operations MAHB managing director Datuk Iskandar years from 2022 to 2024, which Lim said
and maintenance, for a 10-year period. Mizal Mahmood said Aerotrains are ap- will be done through both equity and debt.
proaching their end-of-life stage and need
The Edge weekly reported in July that to be upgraded so that passengers can be As at end-September, Pestech had short-
Pestech together with rolling stock manu- better served. and long-term borrowings of RM479.24
facturer Bombardier Transportation were million and RM795.34 million respectively,
the front runners for the project, which was “The new Aerotrains will be upgraded against cash and fixed deposits of RM138.95
first called for tender in August 2020. together with the track system infrastruc- million. Net gearing stood at 1.44 times.
ture, and this will also provide the airport
In a filing on Dec 27, Pestech said its with better operational efficiency. According to its annual report, the
wholly-owned unit PestechTechnology Sdn group’s core activities are power distribu-
Bhd accepted the letter of award from Ma- “No doubt there will be some inconven- tion and smart grid; high-voltage and extra
laysia Airports (Sepang) Sdn Bhd, a unit of ience to passengers in the next three years high-voltage electrical system; rail electri-
Malaysia Airports Holdings Bhd (MAHB), during the upgrade period. While we will fication and signalling; power generation,
for the design, supply, installation, testing endeavour to minimise the disruption of ser- transmission line and power cables; and in-
and commissioning for the APM and as- vice, passengers will continue to be shuttled frastructure asset management.
sociated works. using the airside bus service which has been
running well as an alternative service since Ongoing rail-related projects include the
Pestech will however be responsible for 2017,” Iskandar added. Gemas-JB double track rail electrification,
the financing of the project, at an estimat- and similarly the rail electrification for the
ed RM300 million to RM350 million in its MAHB said the tender was preceded by MRT Putrajaya Line (MRT2).
three years of development, and payment three feasibility studies to determine the re-
from MAHB will only come in on a stag- quirements, and a series of stakeholder en- The company has been consistently
gered basis across six years from the fourth gagements with theTransport Ministry, reg- profit-making since its listing in 2012. For
year onwards in 2025. ulators and government agencies. the financial year ended June 30, 2021
(FY21), net profit rose 29% year-on-year to
Speaking to The Edge in an exclusive The airport operator appointed US- RM66.38 million or 8.72 sen per share, from
interview, Pestech managing director and based consultancy firm Jacobs Engineer- RM51.45 million or 6.73 sen per share. Full-
group chief executive officer (CEO) Paul ing Group to provide project management year revenue rose 11.49% to RM889.36
Lim Pay Chuan said the company will come consultancy services from the development million, from RM797.68 million.
in as the EPCC (engineering, procurement, of detailed design stages to the project com-
construction and commissioning) contrac- pletion, using the design-build-finance-op- Executive chairman Lim Ah Hock holds
tor, with Bombardier as a subcontractor and erate-maintain (DBFOM) approach. a 33.47% stake in Pestech, while his nephew
technology partner. Paul Lim, the company’s managing direc-
“In Malaysia, Jacobs has been involved tor and group CEO, owns a 19.76% stake.
The Aerotrain will be developed from in almost all of the major rail and transit
March 14, 2022, involving the upgrading projects including the Ampang Line, Kela- Shares of Pestech settled up two sen or
from the current Bombardier’s Innovia APM na Jaya Line, Putrajaya Line, and most 2.58% at 79.5 sen per share, giving it a mar-
100 rolling stock to the Innovia APM 300, ket capitalisation of RM754.65 million.
Lim said.

Upon completion, Pestech will also be
responsible for the operations and mainte-
nance (O&M) of the Aerotrain from March
13, 2025 until Feb 11, 2034.

“We see this as an opportunity for the
group to move into a new segment of not
just undertaking rail electrification, but also
full-fledged services including rolling stocks,
train control systems,” Lim said.

“The O&M portion gives us an oppor-
tunity to really learn to operate the train in
order for us to offer value-added services to
clients in the region in the future,” he added.

It is high time to replace or upgrade the
aged KLIA Aerotrain system, which was

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KUALA LUMPUR (Dec 27):Coastal Con- Consortium For Pemex, this project is attractive due
tracts Bhd said on Monday (Dec 27) a con- led by Coastal to its proximity to existing gas collection,
sortium led by its joint-venture (JV) company Contracts’ JV separation and measuring infrastructure as
Coastoil Dynamic SA de CV (CD) has se- secures RM4.5b well as two major pipelines that will allow gas
cured a gas conditioning plant construction gas conditioning to flow to central, northern and, eventually,
project in Mexico worth RM4.5 billion. plant contract south-eastern Mexico. Ixachi, in comparison
to Mexico’s supergiant shallow-water Can-
The integrated marine oil and gas ser- in Mexico tarell Field, is expected to be the most pro-
vice and solution provider said in a bourse ductive onshore field in Mexico once it hits
filing that CD had entered into a service by Tan Siew Mung peak production, according to the statement.
agreement with Pemex Exploracion and theedgemarkets.com
Produccion, a subsidiary of Mexican state- “We are delighted to have secured the sec-
owned petroleum company Petroleos Mex- On completion of the EMC Papan ond onshore gas conditioning contract on the
icanos (Pemex), to undertake an onshore Plant, CD would have a combined gas con- Ixachi Field in Mexico. Coastal has set foot
gas conditioning plant project, namely the ditioning plant capacity of 480 MMSCFD in Mexico since the year 2013 when Coastal
EMC Papan Plant, which will have a ca- working on the Ixachi Field. The EMC first signed the bareboat charter agreement
pacity of 300 million standard cubic feet Papan Plant can provide gas sweetening, for Agosto 12, a jack-up gas compression ser-
per day (MMSCFD), on the Ixachi Field, dehydration, dew point control and extrac- vice unit currently in its sixth year working for
Tierra Blanca,Veracruz, Mexico. tion of liquefied petroleum gas services for Pemex on the Cantarell Field. Over the years,
the Ixachi Field, said Coastal Contracts. our mutual trust working relationship with
The scope of work comprises engineering, Nuvoil has created synergy for both parties
procurement, construction, operation and The EMC Papan Plant, being part of the to venture into onshore gas plant projects in
maintenance of the gas conditioning plant Ixachi Field, is considered to be a strategic Mexico,” said Coastal Contracts executive
and its related infrastructure.The firm period project not only for Pemex but also for the chairman Ng Chin Heng.
for this contract is 3,902 days, including the Mexico government’s aim to make gas to
construction period of 250 days and the op- reach every Mexican in the country over the The mega contract win is a record-win-
eration and maintenance period of 10 years. years to come, Coastal Contracts said. ning contract for the group in its more than
40 years of history, Ng said. “We are very
The plant is expected to start operations optimistic towards pursuing more projects
by the first quarter of the financial year related to Pemex’s production value chain
ending June 30, 2023 (FY23). amid a steady recovery of the industry.
With oil prices hovering around US$70
In a separate statement, Coastal Con- (about RM293.47) per barrel and the un-
tracts said it is venturing into the onshore derinvestment in the industry during the
gas conditioning plant project in Mexico past few years, oil majors are expected to
with its long-term business partner Nuvoil increase capital spending in 2022.We be-
via CD. Nuvoil is a well-established Mexi- lieve that Coastal Contracts and our JV
can company with a robust track record by company will be able to capitalise on these
virtue of its 23 years of experience in the opportunities,” he said.
engineering, procurement, construction,
operation and maintenance of onshore gas Trading of Coastal Contracts shares was
plants in Mexico, Coastal Contracts added. suspended for an hour on Monday to make
way for the contract announcement. On
It also noted that CD’s first gas condi- resumption of trading, the stock closed
tioning plant, namely the Perdiz Plant with 12 sen or 9.92% at RM1.33, valuing the
a capacity of 180 MMSCFD, which com- group at RM712 million.
menced operations in July 2021, is now
operating at optimal production capacity.

KUALA LUMPUR (Dec 27): Bank Mua- Bank Muamalat and isolated misunderstanding in a media
malat Malaysia Bhd on Monday (Dec 27) explains: conference on Monday with Bank Mua-
refuted a report of a cheque returned by Ser- malat, Lobak assemblyman, Chew Seh
emban Bank Muamalat for being not halal. Cheques are not Yong as well as the customer concerned.
categorised as
The bank stressed that cheques are not “The parties involved agreed it was a
categorised as halal or not. halal or not misunderstanding which was not related
to the issue of being halal or not and they
“As a banking institution, the bank ac- Bernama jointly agreed that the information dissem-
cepts all valid cheques which have been inated in the case was inaccurate,” it said.
completely and correctly filled,” it said in purpose of safeguarding the interest of bank
a statement. customers. Bank Muamalat president and chief ex-
ecutive officer, Khairul Kamarudin said the
It said the bank had contacted the cus- It said all parties in the case had reached banking institution has always provided
tomer in the case as there was a technical an understanding that there was no ele- the best service to all parties regardless
error in which the name of the association ment of halal or otherwise on the deposit- of religion and race.
written in the cheque was different from ing of the cheque except the technical issue
the name registered. “As an Islamic banking institution, the
operation of Bank Muamalat is subject to
“Following that, the customer was told the adherence of Syariah principles, none-
to make the correction,” the statement read theless we provide our banking services to
all eligible parties regardless of religion
According to the bank, any enquiry by and race,” he said.
the bank is aimed at complying with the ex-
isting banking procedures as well as for the

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Because our
journey rests on

thyeosuhrouplrdoegrsroefss.

The path to where we are today is not paved only by
our strength alone, but by all of you who have
trusted us to bring progress to your lives each day.
Winning the award for the ‘Highest Returns to
Shareholders over three years’ for the second year
running is for both you and us, for together we
progress.
Discover more about RHB Group at
www.rhbgroup.com

Together We Progress

RHB Bank Berhad 196501000373 (6171-M)

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KUALA LUMPUR (Dec 27): Sunway Sunway “The total new projects awarded this
Construction Group Bhd (SunCon) has Construction year including the LSS4 projects amount-
secured two letters of intent for jobs worth secures letters ed to RM1.47 billion.
RM385 million in total for the design, en- of intent for
gineering, procurement, construction, test- RM385m solar “The LSS4 projects are subject to nor-
ing and commissioning of solar photovol- mal construction risk of material price fluc-
taic (PV) energy generating facilities. PV jobs tuation. However, with the past experience
and expertise of SunCon in construction
In a Bursa Malaysia filing on Monday by Sulhi Khalid projects, this risk could be mitigated,” it
(Dec 27), the group said it has received a theedgemarkets.com said.
letter of intent from Gopeng Bhd’s whol-
ly-owned subsidiary GBS Suria Sdn Bhd SunCon added that the LSS4 Project 1
for the construction work of a solar PV is a recurrent related party transaction by
energy generating facility (LSS4 Project virtue of SunCon director Tan Sri Chew
1) in Kampar, Perak for RM200 million. Chee Kin also being a director of Sunway
Bhd and Gopeng Bhd as well as in several
The group highlighted the LSS4 Pro- subsidiaries of Sunway Bhd.
ject 1 shall be completed and achieve the
commercial operation date by the sched- Meanwhile, in a separate Bursa Malay-
uled commercial operation date on Dec sia filing, the group announced that it has
31, 2023 as required by the Energy Com- revised the contract sum of the construc-
mission of Malaysia. tion of commercial mixed development
(CP2) in Bandar Sunway to RM755.72
Meanwhile, the construction group also million from the original contract value of
has secured a similar construction work in RM463.17 million.
Klang, Selangor for RM185 million (LSS4
Project 2) and said it shall be completed It also mentioned that the revised com-
on Dec 31, 2023 as well. pletion date of the CP2 project would be
on July 15, 2024 from the previous dead-
“The LSS4 Project 1 and LSS4 Project line of Dec 14, 2023.
2 are expected to contribute positively to
the earnings of SunCon Group for the fi- At noon break, shares in SunCon set-
nancial year ending Dec 31, 2022 (FY22). tled three sen or 1.97% higher at RM1.55,
giving it a market share of RM1.97 billion.

KUALA LUMPUR (Dec 27): Techna-X Techna-X plans ist Board of the Singapore Exchange,”
Bhd has proposed a backdoor listing of its backdoor listing Techna-X said.
50%-owned Chinese capacitor technology
company via Singapore-listed F&B group of capacitor Techna-X, formerly known as Sino
Chaswood Resources Holdings Ltd. tech unit Hua-An International Bhd, recently an-
nounced its expansion roadmap into tech-
The exercise values the capacitor tech- by Adam Aziz nology and energy storage business, as it
nology company, HK Aerospace Beidou theedgemarkets.com diverts from its metallurgical coke business
New Technology Co Ltd (HKAB), at that had dragged the company over the
US$500 million. It will see HKAB taking velop its own proprietary systems,” said last couple years.
over the listing status of Chaswood, which Techna-X.
is currently under share trading suspension Its executive director Datuk Jared
and is undergoing a scheme with creditors. “HKAB has established an 8.25-acre Lim is also the controlling shareholder of
manufacturing and research and develop- loss-making Chaswood, whose shares have
As part of the proposal,Techna-X will ment operation in China’s Guangxi Hi- been suspended from trading since its last
dispose of its 50% stake in HKAB for Tech Industrial Park,” it added. close of 0.9 Singapore cents in 2018.
S$339.28 million (US$250 million) to
Chaswood in exchange for 8.93 billion “The proposed disposal is essentially a Should the proposal go through,
new Chaswood shares at 3.8 Singapore backdoor listing of HKAB via Chaswood, Techna-X and the parties acting in con-
cents apiece. which will enableTechna-X to unlock val- cert will propose to waive the obligation to
ue by monetising and securitising its in- undertake a mandatory general offer for
Chaswood will also acquire the other vestment in HKAB, by creating a separate the remaining Chaswood shares.They will
50% in HKAB from Dr Wan Muham- listing platform for HKAB on the Catal- also be subject to a six-month moratorium
ad Hasni Wan Sulaiman (25%), Nong from trading the Chaswood shares.
You Hua (15%) and Satriya Suetoh
(10%) at the same price and for the Techna-X and the parties will also ex-
same consideration. ecute the scheme of arrangement with
Chaswood creditors to restructure RM62.3
The reverse takeover will result in million of other payables, accruals and cor-
Techna-X owning 48.2% of Chaswood’s porate guarantees in return for Chaswood
enlarged share capital, with another 48.2% shares.
by Wan Muhamad Hasni, Nong and Sa-
triya, while Chaswood will own the entire The proposals are subject to approval
100% in HKAB. from shareholders ofTechna-X and Chas-
wood, among others.
“HKAB uses ruthenium base in its ul-
tra-capacitor and HKAB has complete Shares ofTechna-X settled unchanged
patent field and strategy in ruthenium ul- at 8 sen on Monday (Dec 27), giving the
tra-capacitor technology in order to de- group a market capitalisation of RM162.55
million.

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Tourism Ministry Covid-19:
to extend Melaka state
assembly sitting
relaxation of shortened to
requirements for
operators until one day

June 2022 Bernama

Bernama MELAKA (Dec 27):The First (spe-
cial) Session of the FirstTerm of the
PUTRAJAYA (Dec 27): The Ministry of operating from a co-share office space. 15th Melaka State Assembly which
Tourism, Arts and Culture (MOTAC) has “The relaxation of the regulatory re- was supposed to be held for four days
agreed to extend the relaxation of regula- from Monday (Dec 27) untilThurs-
tory requirements for tourism operators quirements is expected to benefit 5,467 day, was shortened to one day only.
licensed under the Tourism Industry Act licensed tour operators.
1992 until June 30 next year. The motion to shorten the sitting
“It is also hoped to be able to alleviate was proposed by Melaka Chief Min-
Apart from the relaxation of require- the burdens and problems faced by tour- ister Datuk Seri Sulaiman Md Ali
ments relating to the size of premises, ism operators affected by the spread of (pictured) following the spread of
relaxation would also be given in the per- Covid-19,” the ministry said in a statement the Covid-19 virus among assembly
mission for tourism operators to carry on Monday (Dec 27). members and staff.
out other businesses on their premises,
as well as in the rental period for those Earlier this year, MOTAC extended the He said the motion was tabled
relaxation of the requirements for tourism based on Standing Order 9 (3) and
operators from July 1 until Dec 31. 17 (5)(m) of the Melaka State Leg-
islative Assembly, as well as the Mel-
KUALA LUMPUR (Dec 27): Borrowers of PTPTN aka State Health Department’s rec-
the National Higher Education Fund Corp borrowers ommendations to prevent the spread
(PTPTN) who are affected by the floods can affected by flood of Covid-19.
apply to defer their repayment fromTuesday can apply to defer
(Dec 28) until March 31, 2022. repayment from Sulaiman said during the sit-
ting, there would be no oral ques-
PTPTN, in a statement on Monday Dec 28 tion-and-answer session or ad-
(Dec 27), said they can submit their ap- journment speech or written reply,
plication fromTuesday through the corpo- Bernama in accordance with Standing Order
ration’s official portal at www.ptptn.gov. 17 (5) (m) due to time constraints.
my/ PenangguhanBayaranBalikBanjir Read also: Menteri Besar: Selangor to start
or at any PTPTN branch office. distributing RM1,000 flood aid on Dec Instead, he said the sitting would
29 Click here focus on the tabling of the Melaka
They are not required to submit or State Budget 2022.
bring any supporting documents to ap-
ply for the deferment due to floods. The motion was seconded by
State Investment, Industrial and
“Deferment of PTPTN loan repayment Entrepreneur Development Datuk
due to the floods will be given for a period Seri Ab Rauf Yusoh who said that
of three months from the month the appli- state assembly sitting agenda had
cation is approved,” it said, adding that the been arranged according to prior-
successful applicants would be notified via ities and to ensure the smooth run-
email within three working days from the ning of state administration during
date they submit the application. the Covid-19 pandemic.

PTPTN also reminds borrowers to up- A total of 15 assemblymen voted
date their contact information to ensure in favour of the motion, six abstained
information on approval of their applica- and seven were absent.
tion would reach them. Read also:
Four Melaka assemblymen test
It said PTPTN borrowers can browse positive for Covid-19 Click here
PTPTN’s official portal via www.ptptn.gov.my
in the FAQ section or contact PTPTN Covid-19: 2,757 new cases, 4,620
through PTPTN’s Careline channel at 03- recoveries on Dec 27, says Health
2193 3000 (Monday to Friday 9am to 5pm), DG Click here
live chat at www.ptptn.gov.my, e-Com-
plaint at https://eaduan.ptptn.gov.my/,
PTPTN marketing executive at https://
www.ptptn.gov.my/hubung-ptptn and
PTPTN’s official social media.

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PETRONAS spearheads
ESG journey in Malaysia

Malaysia’s energy company demonstrating leadership through its sustainability agenda.

Globally, PETRONAS’ leadership takes wealth of experiences in corporate, social and environmental These undertakings require a lot of efforts
progressive steps to position the organisation sustainability across multiple industries including energy, from PETRONAS to be nimble and able to pivot
forward in the environmental, social and steel, manufacturing and telecommunications. towards new areas and collaborations beyond its
governance (ESG) and sustainability fronts. core business of oil and gas.
These have become the key considerations in Together with her team, Charlotte has set out to
business investment and portfolio decisions orchestrate PETRONAS’ roadmap for its NZCE 2050 aspiration, Fortunately, it is not something new for PETRONAS,
alongside cash flows and profitability. to guide future business propositions, and PETRONAS’ journey which has gone a long way from being a Malaysia-based
Where many corporations are still formulating across the value chain in working towards this aspiration. oil and gas company since its inception in 1974, to now
their paths ahead in this regard, Malaysia’s only operate a workforce of 48,000 employees spread out
Fortune 500 company, Petroliam Nasional Berhad has She leads the establishment of a Corporate in 65 countries, and which works closely with thousands
announced its aspiration to achieve Net Zero Carbon Sustainability function in PETRONAS, which reports of vendors in Malaysia alone.
Emissions by 2050 (NZCE 2050) in November 2020. directly to the President and Group Chief Executive
It certainly speaks volume for the national energy Officer, Datuk Tengku Muhammad Taufik. “I believe we can take an analogy from the early
company to announce this aspiration, due to its days of oil and gas production in Malaysia to the
nature of business in the oil and gas (O&G), one of “It’s such an exciting time to be in the O&G sector right situation today,” says Charlotte.
the hard-to-abate sectors — which, to the unawares, now,” explains Charlotte. “The industry has developed and
is typically seen as a huge challenge in the journey become a technology powerhouse over the years, but it has “If we go back to the 70s, the company would
towards environmental sustainability. been a steady progress over a long period.” have been a pioneer in turning O&G resources into
“For energy companies like PETRONAS, it is really reserves and becoming like a net central contributor
important to show proof of our conviction, deliver “Now we have this tremendous transition that’s to Malaysia’s drive to grow and prosper.
real action, and be open about it or report about it,” already begun, and which will only accelerate.”
says PETRONAS Vice President & Chief Sustainability “I would say today we are very much in the same
Officer, Charlotte Wolff-Bye in an interview. “What is pertinent to PETRONAS in its capacity as a situation. I’m fully confident with the skills that we
“In 2019, PETRONAS announced a new statement national energy company, is to develop its own unique have harnessed in the industry and in our company,
of purpose — a progressive energy and solutions narrative that is specific to Malaysia, and building on the and across the value chain are very transferrable into
partner, enriching lives for a sustainable future.” strength and ambition of Malaysia as a nation,” she says. the new areas that we have to move into.
“It really encapsulates the power of energy, and
how energy is important in driving progress for society.” “On the socio-economic side, we want to make sure that “It’s important that we work together, not just
“But it doesn’t actually talk about oil and not only us, but our whole value chain is resilient for the future. vendors or service providers in the O&G sector, but
gas, which is very interesting. It sort of opens up The whole ecosystem is absolutely essential for us — we also the governments, to make sure that we have a
opportunities for the company to chart a different are only as strong as our whole value chain,” Charlotte says. common vision where we can benefit from each other’s
future from its past,” Charlotte says. investments as we develop the way forward,” she adds.
“I would say the door is wide open to really embrace
not only the NZCE 2050 aspiration but also the whole ESG Decoupling emissions and growth
(environmental, social and governance) agenda,” she adds. Globally PETRONAS provides a multitude of facilities and
services including oil and gas, renewable energy (RE),
An ‹exciting› journey with the entire ecosystem biofuels, energy distribution, chemicals, motorsports,
Appointed as PETRONAS’ Vice President & Chief digital infrastructure, and even venture capital supporting
Sustainability Officer on June 1, 2021, Charlotte brings her industries like agriculture and food & beverages.

“What is pertinent to PETRONAS in While the NZCE 2050 aspiration represents a long
journey ahead, PETRONAS has already established mid-
its capacity as a national energy company term targets up until 2024 in relation to its sustainability
is to develop its own unique narrative performance. These are particularly significant targets for
that is specific to Malaysia, building on PETRONAS, as they include a pledge to cap the group’s
emissions in absolute terms to 49.5 million tonnes of
”the strength and ambition of Malaysia carbon dioxide equivalent— which will stayin placeeven
if PETRONAS’ operations grow in the future.
as a nation.
continues on next Page
— Charlotte Wolff-Bye,

Vice President &
Chief Sustainability Officer at PETRONAS

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from previous Page Aside from NZCE 2050, PETRONAS has also signed up “We’ve seen in the EU, how this has really driven
for different global pledges including the Zero Routine down emissions across industries as part of that
“This is really an important target, because that Flaring by 2030 initiative by the World Bank Group. trading scheme,” she says.
means we have peak emissions,” says Charlotte.
It has also publicly supported the recommendations “The EU industry is really developing a real competitive
“Whatever growth we might have after that will of Task Force on Climate related Financial Disclosures strength in low carbon manufacturing, energy production,
be decoupled from growth in emissions. So that is a (TCFD), with plans to start a reporting regime that and innovation. And we really applaud the Malaysian
very bold target that we set, and we’re making good would create transparency and provide clarity on how government for taking this bold step,” she adds.
progress towards that.” the company performs relative to its net zero aspirations.
The 12MP, she says, is aligned with environmental
Several major components are already in the works “It’s also important that we sign up for this sustainability and also the wellbeing of the society —
to reduce its net emissions — including renewable international framework and commit to public reporting which is aligned with PETRONAS’ own sustainability
energy operations and electrification of PETRONAS’ own of our performance. I believe this will help us to be agenda.
operations including in offshore assets to reduce flaring. trusted and to be a partner of society also in the future,”
Charlotte says. “What’s particularly encouraging is that it puts
“Not every barrel of oil is the same,” Charlotte sustainability and sustainable development part of the
says. “While we are still producing the oil and gas With the headline pledges and initial policies in place growth strategy and economic development going forward.
that the world needs, we need to make sure they are for both the company and the country, Charlotte sees
the cleanest oil — make the process efficient and as the ecosystem on the right track to contribute to the “PETRONAS has been proactively working with
green as possible. That really matters.” global journey towards net zero. Malaysian stakeholders and provided directions and
aspirations to become a net zero GHG emissions nation
PETRONAS is also hard at work to expand its gas “The global banking sector has pledged where US$133 as early as 2050.”
business into green hydrogen that is produced via trillion in assets under management would be geared
renewable energy, as well as to expand its offshore towards supporting decarbonisation of energy systems, On that note, PETRONAS has made real
operations to deliver carbon, capture, utilisation, and for developing countries to benefit from that. commitments to support this 30-year agenda by setting
and storage (CCUS) projects that can cater for its a target to increase its education beneficiaries to more
own requirements or that of its clients. “We see this unprecedented flow of investments than 24,000 in the five-year period of 2020-2024.
going into energy systems internationally. It is very
By 2024, PETRONAS seeks to raise the capacity important for Malaysia to ensure that not only will we “Right now, it is so important that we support the
of its RE operations — currently in India, Dubai and benefit from some of those financial flows to decarbonise next generation of specialists, engineers and leaders
Malaysia — to 3 gigawatts (GW). our energy system, but also to create our own capabilities that will be able to deliver on this net-zero agenda,”
in servicing that whole new direction so we have our own Charlotte points out. “We need to prepare the younger
“Our RE business which we have strong ambitions technologies and capabilities to help others reduce their generation with the right skills that are future-fit and
in and which we have made investments towards, must emissions,” Charlotte adds. can help on that journey and make sure Malaysia can
stand on its own feet. This is absolutely critical,” she says. also prosper in the future.”
At home, PETRONAS is part of Malaysia’s CEO Action
PETRONAS’ CCUS project located in offshore Network which brings together the Corporate leaders in COP26 a testament to the pace of transition
Sarawak is also progressing well with the support of Malaysia to discuss the goings of the NZCE aspiration, and With the onset of Covid-19, the world has seen a
multiple partners, with plans for completion by 2025. the sustainable practices for corporates in Malaysia and sharp rise in the awareness towards environmental
beyond. PETRONAS President & Group CEO is currently sustainability, as seen in the heightened participation
“This is a very important engineering solution to the Chairman of CEO Action Network. at the 2021 United Nations Climate Change Conference
remove carbon. The oldest carbon capture and storage (UNFCCC), Conference of the Parties 26 (COP26).
project is in the North Sea and along the Norwegian “This has been hugely helpful,” says Charlotte. It
coast, and they’ve been sequestering carbon now for also informs government policy and is supportive of the Among the positive developments, include pledges
well in excess of 20 years,” Charlotte says. transition of entire industries, as the government has to end and reverse deforestation, a deal to cut methane
been deliberating around its own carbon neutral goal. emission levels by 30% by 2030, and new commitments
“Nature-based carbon solutions like forestry are to phase out coal power — all of which are targeted to
very important too, but sometimes the premise is a “Hopefully it has given the confidence to the limit global warming by 1.5 degree Celsius.
challenge. CCUS is a very important tool in the toolbox to government a strong body of corporates that can support
decarbonise the energy systems. It requires engineering the broader national ambitions,” she says. “I have been to many COPs before,” comments
solutions which will also create new opportunities of Charlotte, who this time attended the summit as a
strength for PETRONAS and Malaysia,” she adds. Putting the progressive policies and growing PETRONAS representative.
the right talents
On the right track Charlotte also lauded the government’s decision to work “There’s been a lot of talk, but short on action.
Indeed, Malaysia has affirmed its own net zero GHG towards putting a price on carbon as announced in Budget But this time it was very different — it was all
emissions aspiration by as early as 2050, ahead of some 2022 and the 12th Malaysia Plan (12MP), beginning with about showcasing technologies, looking for real
regional peers. Based on the recent studies, Malaysia a voluntary carbon market platform for trading of carbon partnerships, as well as scaling up and matching
is ranked 21st place for its preparedness and ability of credits between green asset owners and other entities project opportunities. It did not disappoint.”
industries and countries to reach net zero by 2050.
“Putting a price on carbon is the most effective way It is public knowledge that country-to-country
As one of the components in Malaysia’s journey, for an economy to decarbonise. It’s technology neutral, negotiations were the highlights, but it is with the
PETRONAS plays its role through the huge undertaking and if you have a market mechanism it will allow the non-states — which includes corporations like
towards low carbon solutions, focusing on removing market to do their job in driving down emissions. PETRONAS— where commitments and collaborations
emissions from its own operations, as well as were at an “unprecedented” scale, says Charlotte.
supporting its own customers to decarbonise.
“It is hugely encouraging. At the same time, we
also see many countries step up on their pledges, and
that is something that will inform our own strategy
and the speed and scale that we have to adopt in our
own NZCE aspiration agenda,” she adds.

“There is no flash-in-the-pan solution. The energy
transition will require a monumental transformation
of how we use and consume energy, which will have
ripple effects on how we live our lives and conduct our
lives, cutting across the whole world. It is a whole system
change.”

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DBKL: Seri Duta 1 fecting the structure of the building. Court metes out
Condominium “Among the signs of soil movement are maximum fine
building unsafe of RM50,000 on
damaged columns, surface tension cracks
Bernama and floor cracks. company for
failing to ensure
KUALA LUMPUR (Dec 27): The Pub- “These signs indicate that the situation workers safety
licWorks Department (PWD) and Public in the area is unsafe, and will pose a risk to
Works Institute of Malaysia (IKRAM), as the occupants of Seri Duta 1 Condomin- Bernama
well as consultants appointed by the devel- ium and residents on land owned by the
oper, have confirmed that the structure of Federal Land Commissioner (PTP),” it SHAH ALAM (Dec 27): The Sessions
the Seri Duta 1 Condominium building, said in a statement on Monday (Dec 27). Court here on Monday (Dec 27) meted out
inTaman Duta here, is problematic and at the maximum fine of RM50,000 on a con-
risk of more critical landslides. DBKL said there were four blocks af- struction company for failing to ensure the
fected, involving 34 residential units, and safety and welfare of its workers, which re-
Kuala Lumpur City Hall (DBKL) said residents have been advised to vacate the sulted in the death of an Indonesian worker.
there have been signs of soil movement af- buildings due to safety factors.
Judge Rofiyah Mohammad meted out
“The Joint Management Body has evac- the fine on HAB Construction Sdn Bhd,
uated the affected residents from their represented by its director, HawWei Sheng,
units as a precautionary measure. 32, after finding the company guilty.

“Slope and building repair work will She ordered the company to pay the
be carried out immediately, and will be fine on Monday.
reviewed by DBKL and IKRAM,” it said.
HAB Construction Sdn Bhd was
Mohamad Shahril Basri/The Edge charged with failing to ensure as far as is
practicable, the safety, health and welfare,
MyPrice while at work, of all its employees which
Dashboard set resulted in a fatal accident involving an In-
up to monitor donesian employee, Matrais, 38, during the
prices of selected operation of the tower crane .
essential goods
Matrais was killed when the tower crane
Bernama fell on him.The incident also left three oth-
er workers injured.They are Sudami (Indo-
PUTRAJAYA (Dec 27): Daily price chang- currently, the dashboard covers 137 selected nesia), 50; and two Bangladeshi nationals,
es of selected essential goods can now be outlets throughout Malaysia, he said. Toffazal Hossain, 41, and Raja Miah, 33.
monitored via the MyPrice Dashboard.
The 36 items were selected based on The incident occurred at a proposed
Developed by the Department of Sta- the most consumed and preferred items mixed development site at Persiaran
tistics Malaysia (DOSM) in collaboration by most households in Malaysia. Multimedia, Section 7, here at 10.30am
with the Ministry of Domestic Trade and on Jan 2, 2018.
Consumer Affairs (KPDNHEP), the My- “The MyPrice Dashboard aims to
Price Dashboard, which is accessible at supply various parties with daily prices of The charge was framed under Section 15
https://tinyurl.com/MyPriceDOSM, those goods and allow the government to (1) of the Occupational Safety and Health
shows daily prices of goods from Dec 7. monitor and analyse the trend of any price Act 1994 and punished under Section 19
changes,” he said, adding that the MyP- of the same act, which provides for a max-
Chief statistician Datuk Seri Dr Mohd rice Dashboard will also help households imum fine of RM50,000 or imprisonment
Uzir Mahidin, in a statement on Monday obtain better information regarding prices up to 20 years or both, upon conviction.
(Dec 27), said the MyPrice Dashboard con- from a reliable source.
tains four main categories of selected essen- In mitigation, the company, represent-
tial goods, namely: chicken, beef and eggs; Sharing the example of a price trend, he ed by lawyer Arif Asyraf Mohd Khairi,
vegetables; fish and seafood; and fruits. said the price of one kilogramme of Indian said his client had paid compensation of
mackerel at the Selayang Baru wet market RM10,000 to the family of the deceased,
Prices published on the MyPrice Dash- in Selangor decreased to RM20 on Dec 26 as well as bore the expenses in sending the
board are based on three sources consisting from RM24 on Dec 7, while the price of remains to Indonesia,and covered the med-
of prices obtained from KPDNHEP’s mon- the same fish at the Precinct 8 wet market ical treatment of the three injured workers
itoring, data crawling and price collection in Putrajaya was consistent at RM20 per while they were in hospital.
by DOSM staff at selected outlets, he said. kilogramme since Dec 7.
Also representing the company were
The “MyPrice Dashboard will be up- Mohd Uzir also said that the recent lawyers Mohd Khairul Brian and Mu-
dated regularly for the benefit of the rak- floods had not caused a major impact on hamad Syah Azlan, while the prosecution
yat as well as the government, particularly overall prices of goods. was represented by prosecuting officers
in monitoring price changes”, he added. from the Selangor Department of Oc-
“Nevertheless, it is expected that there cupational Safety and Health — Mohd
The MyPrice Dashboard will initially con- may be a tendency of an increase for goods Nizam Teh Kamaruddin, MaizuraYusof
sist of 36 selected essential goods, including that have experienced a sharp rise in de- and Mohd Khairi MohdYatim.
12 goods under the Keluarga Malaysia Maxi- mand, such as household appliances,” he
mum Price Control Scheme (SHMKM),and added.

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A momentous year for Malaysian judiciary:
2021’s high-profile cases, historic decisions

KUALA LUMPUR (Dec 27): 2021 has Bernama Datuk SeriTengku AdnanTengku Man-
truly been a momentous year for the Ma- sor’s graft case made headlines after the
laysian judiciary, with several decisions Bloomberg Appeals Court, on July 16, acquitted and
deemed as shocking made in historic and discharged him of the charge after allowing
high-profile cases involving national lead- Attorney-general’s Chambers released a the former Federal Territories Minister’s
ers, including former prime minister Datuk Federal Government Gazette dated Dec appeal to quash his conviction and sentence
Seri Najib Razak. 1 for the implementation of Undi18 and of 12-month jail and RM2 million fine.
AVR to take effect on Dec 15.
The court verdicts that took centre Justice Datuk Suraya Othman, who read
stage included public interest cases on cit- Another historic decision was made on the 2-1 majority decision, held that the RM2
izenship, Undi18, as well as money laun- Sept 9, when High Court Judge Datuk million cheque thatTengku Adnan received
dering, corruption, and criminal breach of Akhtar Tahir declared that children born from businessmanTan Sri Chai Kin Kong
trust (CBT) linked to prominent figures overseas to Malaysian mothers who are was a political donation to UMNO.
in the country. married to foreigners are entitled by op-
eration of law to be citizens of Malaysia. The acquittal of Pontian Member of Par-
On Dec 8, the Court of Appeal upheld liament Datuk SeriAhmad Maslan on charg-
the conviction and 12 years’ jail term and Justice Akhtar ruled that Part II of the es of failing to declare RM2 million which he
fine of RM210 million imposed on Najib, Second Schedule of the Federal Constitu- received from Najib to the Inland Revenue
68, for misappropriating RM42 million in tion must also mean and include mothers, Board (IRB) and giving false statements to
SRC International Sdn Bhd funds after dis- hence, he made an order that all the relevant the MalaysianAnti -Corruption Commission
missing his appeal to set aside the Kuala authorities must issue relevant documents, (MACC), also caught the nation’s attention.
Lumpur High Court’s ruling on July 28, like identity cards, to six children in recogni-
2020. On the very same day, the defence tion of this effect.The court made the ruling On Sept 29, High Court Judge Datuk
team filed an appeal at the Federal Court, after allowing a legal suit filed by the Associ- Ahmad Shahrir Mohd Salleh ordered Ah-
which is their last avenue, against the verdict. ation of Family Support &Welfare Selangor mad to be freed after the prosecution in-
& Kuala Lumpur (Family Frontiers) and six formed the court that the prosecution was
Justice Datuk Abdul Karim Abdul Jal- Malaysian women who are married to for- withdrawing the two charges after the ac-
il, leading a three-member bench com- eigners for their overseas-born children to cused paid a compound of RM1.1 million.
prising Justices Datuk Has Zanah Mehat have the right to become Malaysian citizens.
and Datuk Vazeer Alam Mydin Meera, in The MACC, in a statement issued on
a 308-page grounds of written judgment, On Dec 22, the Court of Appeal dis- the same day (Sept 29), stated that the
ruled that Najib’s conduct in relation to the missed applications by the Malaysian gov- RM1.1 million compound issued against
SRC International case cannot be said to ernment, Home Minister and the National Ahmad was a punitive act and a form of
have served the national interests as it had Registration Department (NRD) direc- asset recovery under the country’s an-
turned out to be a national embarrassment. tor-general to stay the ruling pending their ti-money laundering law.
appeal, which was set on March 23 next year.
Another historic decision was when the The same goes for UMNO legal advisor,
Kuching High Court in Sarawak on Sept Another case that made headlines was on Datuk Mohd Hafarizam Harun who was
3 ordered the Election Commission and a High Court decision on Feb 3 in sentenc- also freed from money laundering charges
the government to implement Undi18 by ing former Felda chairman Tan Sri Mohd involving RM15 million, which he allegedly
Dec 31. Analysts described the decision as Isa Abdul Samad to six years in jail and fine received from Najib, after the prosecution
one that will change the country’s politi- of RM15.45 million, in default 18 years’ jail, on July 30 informed the Sessions Court
cal landscape with the presence of about after finding him guilty of nine counts of that the prosecution was withdrawing all
4 million new voters in the 15th General corruption involving RM3 million over the three money laundering charges against the
Election, which is expected to take place agency’s purchase of Merdeka Palace Ho- lawyer, who agreed for the cases to be com-
after the second half of 2022. tel & Suites (MPHS) in Kuching, Sarawak. pounded amounting to RM590,587.26.

The decision was handed down by Ju- Not satisfied with the ruling, the for- Datin Seri Rosmah Mansor’s trial also
dicial Commissioner Alexander Siew How mer Negeri Sembilan menteri besar filed caught public attention. She was ordered
Wai when allowing a judicial review appli- an appeal to the Court of Appeal and by the High Court to enter her defence on
cation brought by five Malaysian youths submitted 40 grounds on why he should three corruption charges involving the solar
from Sarawak aged between 18 and 20, to be freed of the charges. hybrid project in Sarawak. Rosmah, 70, who
seek immediate enforcement of an amend- is the Najib’s wife, gave her statement from
ment in the Federal Constitution to lower a witness stand for the first time on Oct 5.
the minimum voting age from 21 to 18.
Apart from that, on Dec 6, High Court
In quashing the government’s and the Judge Datuk Collin Lawrence set Jan 24 for de-
Election Commission’s (EC) decision to cision on whether former deputy prime minis-
defer implementation of the constitutional ter Datuk Seri DrAhmad Zahid Hamidi would
amendment, which includes Undi18 and be acquitted or to be ordered to enter his de-
automatic voter registration (AVR), the fence on 47 criminal breach of trust (CBT),
court also ordered all necessary steps to corruption and money laundering charges in-
be taken for the constitutional amendment volvingYayasan Akalbudi (YAB) funds.
to come into operation as soon as possible Click here to read the full story
and by Dec 31, 2021. Subsequently, the

T U E S D A Y D E C E M B E R 2 8 , 2 0 2 1 22 T H E E D G E C E O M O R N I N G B R I E F

Celebrating another milestone that could only
be achieved together with the support from our

partners, customers and stakeholders.

Thank you!

Highest Return On Equity Highest Growth In Profit After Tax
Over Three Years Over Three Years

Pengerang Deepwater Terminals

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Jokowi builds President Joko Widodo seeks to bring
hospital to recoup in wealthy Indonesians and foreign visitors
US$7b in medical to the Bali International Hospital, which
will start operating in mid-2023, he said
tourism at the groundbreaking event on Monday.
The facility is being built in the Sanur area
by Arys Aditya known for its white sand beaches.
Bloomberg
About 2 million Indonesians travel to
JAKARTA (Dec 27): Indonesia is building countries such as Singapore, Malaysia, Ja-
a hospital that will be run in partnership pan and the US for medical treatment each
with US-based Mayo Clinic as part of a year due to a lack of trust and limited ca-
bid to recoup US$7 billion in outbound pacity in the local health system.That re-
medical tourism. sults in 97 trillion rupiah (US$7 billion) of
annual losses for the country, said Jokowi,
as the president’s known.The hospital will
be part of his broader bid to reduce imports
of drugs, raw pharmaceutical material, as
well as health equipment and services.

SHANGHAI (Dec 27):The Chinese gov- China tightens investment restrictions in areas such as
ernment will require that domestic firms scrutiny of media and education.
in sectors off-limits to foreign direct in-
vestment, such as Internet news and pub- offshore listings The NDRC statement comes just
lishing, receive clearances from regulators in certain sectors days after China’s securities regulator
before they can list their shares outside the published draft rules requiring filings by
mainland. by Beijing & Shanghai newsroom companies seeking offshore listings to en-
Reuters sure they comply with Chinese laws and
The National Development and Reform regulations.
Commission (NDRC) announced the new ment of the companies” and their holdings
rules on the clearances on Monday in a are to be capped at 30%, in line with the Under the new filing system,VIE-struc-
statement that also included an updated rules regulating locally-listed companies. tured companies will still be allowed to
annual “Foreign Investment Negative List” list as long as they are compliant.
that outlines business sectors where foreign The latest Negative List includes pro-
direct investment is banned or restricted. hibited sectors such as compulsory ed- “The NDRC statement goes hand in
ucation institutions, news organisations hand with the filing system,” and will like-
The new rules now apply that list to and rare earth minerals. ly restrict the use of VIEs, said Zhan Kai,
companies issuing shares overseas for the a lawyer at East & Concord Partners.
first time, and come as China is tightening Additionally, overseas investment in in-
scrutiny over offshore share sales. dustries ranging from publishing, nuclear However, China’s Ministry of Com-
power stations and telecom is restricted. merce framed the new rules as a gesture
Chinese companies in sectors prohib- of policy relaxation.
ited for foreign investment “should get Many Chinese companies use a so-
clearance from relevant Chinese regula- called variable interest entity (VIE) struc- “China is exploring ways to allow com-
tory bodies, if they seek share sales and ture to float overseas, skirting the foreign panies in sectors off-limits to foreign in-
list in overseas markets,” the NDRC said, vestment to list overseas under certain
plugging a regulatory loophole. Bloomberg conditions, expanding investment chan-
nels for foreign investors,” the ministry
In addition, “foreign investors must not said in a separate statement.
participate in the operation and manage-
China’s new rules to manage offshore
listings will likely ease the regulatory un-
certainty that roiled financial markets this
year and stalled offshore listings.

Investors had previously feared that
Beijing could ban all overseas listings us-
ing the VIE structure, after Didi Global
Inc’s US floatation in July sparked a ma-
jor regulatory backlash from Chinese of-
ficials that were concerned over national
security.

The NDRC statement also formally
scrapped foreign ownership restrictions
in carmakers and removed a previous cap
limiting the number of vehicle joint ven-
tures a foreign investor can set up in China.

Read also: Beyond Didi: Watch these
homecoming China stock listings in 2022
Click here

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(Dec 27):The head of Norway’s US$1.4 Norway wealth “As a long-term investor, we don’t
trillion wealth fund said he expects a fund CEO sees have that many options,” he added. “We
lengthy period of weakness in financial market weakness, have nowhere to hide from inflation.”
markets and warned that inflation could inflation threat
be the most significant challenge ahead. Built from North Sea oil and gas rich-
by Iain Rogers es, Norway’s wealth fund has a portfolio
Nicolai Tangen, chief executive officer Bloomberg of about 9,000 stocks. It has exited hun-
of Norges Bank Investment Management, dreds of companies over the past decade
told Germany’s Frankfurter Allgemeine bloomberg to avoid the environmental, social and
Zeitung that after achieving an average governance risk it says they represented.
rate of return of 6% for a quarter century, Nicolai Tangen, chief executive officer of Norges
the fund is now preparing for “a decade Bank Investment Management. Read also:
of lower returns”. JPMorgan says investors too bearish,
does not see US stocks’ sell-off
“It might even turn negative,” the pa- There is no reason to fear that the rally
per quoted him as saying in an interview. that catapulted US stocks to successive
“We just have to accept that. The future records this year will end anytime soon,
will be less attractive for us than the past.” according to JPMorgan Chase & Co
strategists. In fact, more investors may
Tangen said the “biggest potential soon join. Conditions for a large sell-off
problem” for the fund — the world’s big- are not in place right now given already
gest owner of publicly traded stocks — low investor positioning, record buy-backs,
is inflation and predicted surging prices limited systematic amplifiers, and positive
could have “far more serious consequenc- January seasonals.
es than is currently generally assumed.” Click here

“I see inflation everywhere: in freight
rates, in the prices of metals and food,
in construction costs, and gradually in
wages,” he told the FAZ.

ISTANBUL (Dec 27): Turkey’s lira Turkey’s lira to buy foreign currency despite official as-
snapped a five-day rally, challenging gov- slides amid surances, he said.
ernment assurances that it’s on a more sta- questions over
ble footing after measures were introduced currency-defence Under the new mechanism announced
a week ago to stem its collapse. last week, the government will make up for
tool losses incurred by holders of lira depos-
The currency slipped 6.2% to 11.3399 its if the currency’s declines exceed bank
per dollar as of 1:42 p.m in Istanbul, after by Burhan Yuksekkas interest rates.
trading as weak as 11.5831 earlier.The de- Bloomberg
cline took the lira’s drop this year to more Upward movement
than 34%, the sharpest depreciation of any movement in the dollar-lira exchange rate The lira’s depreciation accelerated in De-
emerging-market currency during 2021. may occur again,” Ibrahim Aksoy, the chief cember as the central bank pressed ahead
economist at HSBC Holdings Plc in Is- with interest cuts at the president’s behest,
Monday’s retreat came after President tanbul, said in a note to investors. fueling concern the policy will hobble in-
RecepTayyip Erdogan said Friday that the dustry, while fanning inflation at a time
lira will stabilise “gradually” after measures Erdogan’s comments suggest that the when the country is grappling with a surge
were brought in to shore up the beleaguered government is seeking to guide the ex- in Covid-19 infections.
currency, including a new tool to shield li- change rate below the 9 per-dollar level,
ra-deposit holders. Central bank data also according to Aksoy.Turks are continuing Confidence amongTurkish manufactur-
suggest authorities have been intervening in ers fell in December, according to central
foreign-exchange markets.The moves drove bank data released Monday, underscoring
the currency to a 54% gain last week, revers- the currency’s gyrations. Capacity utilisa-
ing a 15% loss the previous week. tion rose to 78.7%, from 78.1% the pre-
vious month.The Turk-Is labour confed-
“If the central bank’s possible sales eration said one measure of food inflation
of foreign currency diminish, an upward jumped 25.8% in December.

bloomberg Turkey’s stock exchange applied the so-
called uptick rule for the benchmark Bor-
sa Istanbul 100 index on Monday, after it
gained as much as 5% in early trading.The
rule requires that short sales be conducted
at a higher price than the previous trade.
It was up 1.2% as of 1:38 p.m. local time.

The Omicron variant accounts for more
than 10% of all Covid cases found inTur-
key’s major cities, according to the health
ministry. No additional restrictions will
be imposed since hospitalisations aren’t
significantly higher, it said.

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A Sustainable Economy

For Long-Term Socioeconomic Prosperity

While monsoon rains are a normal annual occurrence in Malaysia, no one expected the low tropical pressure system in the Straits of
Melaka to cause heavier than usual rains in almost all states in Peninsular Malaysia recently. Apart from the Ministry of Finance’s quick
response in ensuring additional allocations towards relief and restoration efforts for the unexpected severe flash floods, it is equally
important to ensure that the risk of such occurrences is minimised in future.

Acknowledging this, the sustainability agenda conservation, RM70 million of EFT will be Community Empowerment
has been given further impetus starting with allocated annually to all states, and the EFT
Budget 2021, when MOF began mapping many implementation mechanism strengthened Since the onset of the pandemic and the
of the budget measures to the Sustainable through outcome-based criteria. recent floods, NGOs, GLCs, social enterprises
Development Goals (SDG). This was continued and communities have played a crucial role
in Budget 2022 with the announcement of Complementing all these efforts are the as field agents to support the people’s socio-
various measures to reflect the Government’s expanded scope of tax incentives on green economic well-being. In 2022, the government
sustainability agenda. technology, for the purchase of green assets will again collaborate with them through
and services that are eligible for Rainwater Yayasan Hasanah to fund various environ-
Environment and Biodiversity Collection and Re-use System Projects. mental and social initiatives.

Our biodiversity is a national treasure, which is Low Carbon Practice A total of RM100 million will be pro- vided
why its conservation is important. Under in the form of matching grants with the contri-
Budget 2022, the government has allocated As part of Malaysia’s commitment to become bution of GLC-owned foundations to NGOs to
RM115 million to nature conservation projects carbon neutral by 2050, several Budget 2022 fund various educational, income generation
such as the Penang Hill Biosphere Reserve and initiatives will contribute towards ensuring the and mental health programmes for the
Tasik Chini Reserve, as well as projects to country’s sustainable growth without losing its vulnerable. The grants will also fund
address coastal erosion in Kedah and floods competitiveness in the global market. programmes focusing on social enterprise,
in Melaka. environmental conservation and animal
These include establishing a Voluntary welfare, as well as the preservation of arts and
In acknowledging the knowledge of Carbon Market (VCM), an initiative to be heritage.
local communities, veterans and Orang Asli, spearheaded by Bursa Malaysia. The VCM is a
RM37 million has also been allocated towards platform for voluntary carbon credit trading Complementing the noble objectives of
programmes to empower them as biodiversi- between green asset owners and other social enterprises are income tax exemptions
ty guardians. Another RM15 million will go to entities transitioning towards low-carbon for three assessment years from 2022.
funding a Natural Resource Ecotourism practices.
Empowerment Programme For Local RM10 million will go towards grants for
Community Development. SMEs will also be encouraged to adopt NGOs and universities for social enterprise
sustainable and low-carbon practices programmes, while another RM20 million will
There is also funding to assist zoo through BNM’s RM1 billion for a Low Carbon be used to fund digital learning including
operating costs and efforts to increase the Transition Facility fund, based on a matching online education applications and robotic
breeding of Malaysian Tigers, as well as the fund arrangement with participating financial programmes.
implementation of the Frozen Zoo programme institutions.
to preserve the survival of endangered To increase opportunities for social
species. To encourage the use of electric enterprises to participate in government
vehicles (EVs) and support the development procurements, the Government’s Social
To achieve Malaysia’s sustainability of the local EV industry, the government will Impact Procurement Programme will be
goals, there are specific campaigns and provide import duty, excise duty, and sales tax extended to all Ministries starting next year.
projects like the 100-million Tree Planting exemptions on EVs.
Campaign, and the Environmental Pollution Community empowerment is also
Programme, which collectively will be allocat- reflected in the RM14-million funding towards
ed RM34 million. Further, RM16 million has been the United Nations Development Programme
set aside for the SDG Programme Initialising on tourism activity and financing grants for
Fund, while RM7 million will go towards a pilot startups, NGOs and local SOEs.
project for biofuel production and rain
harvesting in government buildings. Addition- Malaysia has always been a firm believ-
ally, RM150 million will be allocated to address er in sustainable development. Over the years,
Non-Revenue Water. the country has adopted many global green
standards and initiatives to ensure that its
To institutionalise the implementation of rapid growth does not come at the expense of
Ecological Fiscal Transfer (EFT) for biodiversity environmental and social degradation. The
nation’s annual budget is responsible for
bringing all these aspirations to life.

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 26 T h e E d g e C E O m o r n i n g b r i e f

world

China Huarong still subject to regulatory approval, it said. Evergrande
sells 70% stake Huarong, one of four debt collec- races to restart
in its consumer projects as debt
finance unit to tors created by China’s finance ministry
Bank of Ningbo in 1999 to process bad loans made by repayments
the country’s biggest banks, had missed loom
by Cheng Leng & Ryan Woo a March 31 deadline for filing its 2020
Reuters earnings, sparking a rout in its US dol- Bloomberg
lar-denominated bonds that spread to oth-
BEIJING (Dec 27): China Huarong As- er Chinese issuers. (Dec 27): China Evergrande Group said
set Management Co said on Monday it has resumed construction at most of
that it will sell a 70% stake in its con- The bonds then rose in August after it its housing projects as authorities push
sumer finance unit for 1.1 billion yuan revealed a state-backed rescue plan, un- the debt-laden developer to pay migrant
(US$172.64 million) to Bank of Ningbo, der which a consortium led by the state- workers and deliver apartments.
as Huarong continues to divest assets as owned Citic Group Corp agreed to make
part of a business revamp. a strategic investment in it. Nearly 92% of Evergrande’s property
projects have so far restarted, compared
After the completion of the deal, Hua- The state consortium would help it se- with just about 50% at the beginning
rong Consumer Finance, the unit, will no cure fresh capital worth 42 billion yuan, of September, according to a compa-
longer be a subsidiary of the group, ac- the company said last month. ny statement released Sunday night.
cording to a statement filed with Hong The number of workers involved in the
Kong Stock Exchange. Besides the consumer finance unit, projects that have resumed building has
Huarong has announced similar plans to risen 31% from September to 89,000.
Huarong and Bank of Ningbo reached sell stakes in a distressed asset exchange
an equity transfer deal on Dec 27, and it is unit and the securities unit, amid a regu- “As long as we do a good job in re-
latory push to sell non-core assets as part starting work, production and construc-
of its business restructuring, Reuters has tion, we’ll be able to deliver houses to
reported. buyers, resume sales and operations
and pay off debts,” the statement cit-
Last month, Huarong was granted ap- ed Chairman Hui KaYan as saying at a
proval to raise 70 billion yuan of financial company meeting.
bonds in the interbank market, as it con-
tinues to improve its credit profile and Evergrande is struggling with more
refocus on its main bad loan business. than US$300 billion in liabilities as a
government campaign to deleverage
BEIJING (Dec 27): China’s oil consump- CNPC research: developers and curb years of housing
tion is expected to keep growing for a dec- China oil demand speculation takes a toll.Already labeled a
ade on robust chemical demand, reaching defaulter after missing coupon payments
a peak of about 780 million tonnes per to peak by 2030 on two bonds, Evergrande is facing a
year by 2030, a research institute affiliat- on petrochemical maturity wall next year and has said it
ed with China National Petroleum Corp plans to “actively engage” with offshore
(CNPC) said on Sunday (Dec 26). use creditors on a debt restructuring plan.

Last year, the research group, called the Reuters Concerned that a deepening indus-
CNPC Economics &Technology Research try crisis would hurt economic growth
Institute (ETRI), said that China’s oil de- sil fuel would decrease steadily in 2031 to and undermine social stability, Beijing
mand would peak at 730 million tonnes 2050 as coal-fired power plants become has started to ease financing for some
per year by around 2025. a back-up energy source. developers as well as homebuyers. Ever-
grande’s overhaul is now being guided by
In its latest report, the ETRI said This follows plans from the government a risk committee that includes officials
diesel fuel, gasoline and kerosene con- to reduce coal consumption in China, the from its home province of Guangdong.
sumption are forecast to peak sometime world’s biggest emitter of greenhouse gas-
around 2025 at about 390 million tonnes es, in an “orderly” manner as part of its Evergrande must “sprint at full
per year. The strong petrochemical de- drive to reach a peak in carbon emissions. speed” to meet the goal of delivering
mand will support rising consumption 39,000 apartment units at 115 projects
through to 2030. China’s top leaders said at an agen- this month, Hui said in the statement
da-setting meeting this month that the posted online, which carries a picture
Overall oil demand will fall after 2030 “gradual withdrawal of traditional en- of him dressed in a gold tie and black
as transportation consumption declines ergy sources should be based on the es- suit addressing colleagues.The target
amid the electrification of vehicles while tablishment of safe and reliable of new is almost four times the firm’s aver-
chemical demand remains stable during energy sources”. age monthly delivery of under 10,000
the period, the ETRI said. units since September, according to
The ETRI also forecast the consump- the statement.
The ETRI also revised the peak of tion of natural gas, a key bridge fuel during Click here to read the full story
China’s total primary energy consump- the energy transition and carbon reduc-
tion to 6.01 billion tonnes per year of tion, will peak by 2040 at about 650 billion
standard coal by around 2030, from 5.6 cubic metres per year, led by consump-
billion tonnes per year by around 2035 tion from industry and power generators.
previously.

“Coal consumption in China would
enter a plateau at around 3.6 billion to 4
billion tonnes in 2021-2030,” the ETRI
said, adding that the use of the dirty fos-

T U E S D A Y D E C E M B E R 2 8 , 2 0 2 1 27 T H E E D G E C E O M O R N I N G B R I E F

GIVING IDEAS ROOTS TO GROW
Dzuleira Abu Bakar, CEO, Technology Park Malaysia

T oday, the combined market value of the world’s 4 most innovative compa- The positive relationship between innovation and developmentGII score
nies - Microsoft, Alphabet, Apple and Amazon - is USD7 trillion huge and
2 times the Gross Domestic Product (GDP) of ASEAN. Over the past 20 60
to 30 years, the ratio of tangible assets to intangible assets (such as intellectual
property rights) - flipped from 83% to 17% to become 16% to 84% respectively 50
for S&P 500 companies. Malaysia
A 2021 joint study by the EU Intellectual Property Office (EUIPO) and Europe-
an Patent Office (EPO) continues to show a strong, positive correlation between 40
intellectual property rights (IPRs) and economic performance. It states that
“IP-owning firms represent a significantly larger proportion of economic activity 30
and employment across Europe,” with IPR-intensive industries contributing to
45% of EU GDP (US$7.9 trillion).

The study also shows 39% of employment is directly or indirectly attributed to 20
IPR-intensive industries, which generate higher wages and greater revenue per
employee, especially for small-to-medium-sized enterprises. That concordes 7 8 9 10 11
with the United States, where the Department of Commerce estimates that
IPR-intensive industries support at least 45 million jobs and contribute more GDP per capita [PPP$ logarithmic scale]
than US$6 trillion (or 38%) to the GDP.
These examples show how IPR is necessary as a core feed to wealth, with Innovation leader Performing at expectations for level of
innovation being a highly desirable output from this process. development
Which brings me to the Malaysian Research Accelerator for Technology and
Innovation or MRANTI, an agency that will be fully operational in 2022, tasked Performing above expectations for level Performing below expectations for level
to deliver a Return on Ideas (ROI). MRANTI will help accelerate a secure of development of development
supply of innovation for Malaysia, towards improving the lives of all Malaysians,
and uplifting our future. Source: Malaysia (wipo.int)

Innovation: The Need To Be Intentional Relative to GDP, Malaysia’s Innovation Performance is “at expectation” for its level of development.
The bubble chart above shows the relationship between income levels (GDP per capita) and innovation
The world's wealthiest countries based on GDP per capita, were mapped using performance (GII score). The trend line gives an indication of the expected innovation performance
data from the International Monetary Fund. It was found that these countries are according to income level. Economies appearing above the trend line are performing better than
also chart toppers on the OECD Better Life Index and the Global Innovation
Index. expected and those below are performing below expectations.
Switzerland, Denmark, the USA, Netherlands and Sweden, appear under the
indicators of wealth, well-being and innovation; while Singapore, Norway, Organization’s (WIPO) Patent Cooper-
Iceland and Finland also appear under any two of these indicators. This is surely ation Treaty (PCT) system reached a
not a coincidence! record 275,900 filings, growing 4%
from 2019. While several countries saw
an increase in patent filings, Saudi
Arabia and Malaysia both saw signifi-
cant increases in the number of annual
applications, with the USA and China
filing growths of 73% and 26%, respec-
tively.

RANKING WEALTH WELL-BEING* INNOVATION** The valuation and therein, protection of
IPR, provide the incentives that enable
1 Luxembourg Norway Switzerland innovators across many industries to MRANTI will be the glue that
undertake the often risky, difficult, holds and strengthens the links
2 Ireland Australia Sweden expensive, and time-consuming process between all the individual parts
USA of creating novel innovations. It gener- of our ecosystem, so that if you
3 Switzerland Iceland ates capital and revenue, enabling have an idea that could change
governments and companies to invest in the world, you will know to seek
4 Norway Canada United Kingdom researching, developing, manufactur- all your answers from MRANTI.
ing, and marketing their products.
5 USA Denmark South Korea
The biopharmaceutical industry, for
6 Denmark Switzerland Netherlands example, is characterised by high-risk, time-consuming, and cost intensive
processes including basic research, drug discovery, pre-clinical trials, three
7 Singapore Netherlands Finland stages of human clinical trials, regulatory review, and post-approval research and
safety monitoring. On average, the drug development process can take between
8 Iceland Sweden Singapore 11 and 15 years and only 0.05% to 0.1% of drugs make it from basic research
into clinical trials. Of these, the U.S. Food and Drug Administration (FDA)
9 Netherlands Finland Denmark approves less than 12% for use.

10 Sweden USA Germany

Source: International Monetary Fund - GDP per capita, 2021, OECD Better Life Index 2020, Fortunately, as innovation is commoditised, the economies of scale have allowed
Global Innovation Index 2021 the cost of goods and services - for example solar panels, computers, software,
photography equipment and others - to become more affordable. At the same
Value of Innovation time, Artificial Intelligence (AI) innovations have been showing great promise in
reducing the very costly problem of waste, for example.
The world’s most innovative countries have very clear correlations between their
drive on innovation and their society’s wealth and well-being. The opportunities are huge, and we must be ready to plug in!

Where is Malaysia in this regard? The recently released Global Innovation Index Giving Ideas Roots: More Grit With R&D
(GII) 2021 ranks us third after China and Thailand as the most innovative coun-
try in the upper middle-income group category. However, our ranking overall With MRANTI, the premise is simple: foster innovation to increase national
against 132 countries dropped from the previous year. Across these 3 measures, GDP and foreign investment, while ensuring innovations are more affordable,
Malaysia available and accessible towards improving the quality of life for all Malaysians.
a. Ranked between 30 and 40 in the GII, for the past 3 years
b. Ranked between 61 and 70 for on the Wealth Index for GDP per capita In doing so, MRANTI will aim to turn Malaysian R&D to be more mission
c. Recorded a marginal improvement in the annual Malaysian Well-Being Index focussed - fast-tracking ideas to impact and in doing so, drive greater Return
on Ideas (ROI). While the conventional Return on Investment conveys fiscal
(Malaysia was not included in the OECD survey) yields from capital outlays, Return on Ideas broadly refers to the conversion of
knowledge to fiscal earnings.
Clearly, the work to seed, harvest and multiply innovation must be intentional if
wealth and well-being are what we seek. It is not a hit-miss, nor happenstance. Today, Malaysia’s Commercialisation rate is between 5% to 10% (at best report-
Rather, it is a discipline for continuous improvement. ed as 8.3% between 2005-2015 that is, during RMK 9 to RMK 10). This has
likely dipped in recent years although no official tracking has been done.
Einstein, Musk and Gates - and many geniuses of our time, laboured to
overcome obstacles in regulation, financing, marketing and technology - to Further, the National Survey of Research and Development (R&D) in Malaysia
unleash new possibilities for industries like transportation, agriculture, manufac- showed that between 2016 and 2020, more than 386 projects were commercial-
turing, energy, supply chain and logistics. ised, cumulatively valued at just over RM400 million. Compare this with China
which aimed to have a commercialisation rate of 34.7% in 2020. Or with Korea,
As entrepreneurs keep pushing for new advances in the face of adversity, the which 10 years ago, already had a commercialisation rate of 39% which was
flow of information including sharing of protected know-hows, leads to new deemed unsatisfactory. In highly developed economies such as Japan and the
innovations and improvements on existing ones. USA, this is reportedly as high as 60%.

The Value of IP There is high potential for Malaysia’s growth. There are also gaps to close, and
this is what MRANTI will be tasked to do.
In an effort to meet the tremendous challenges brought on by COVID-19
globally, in 2020, global patent filings through the World Intellectual Property

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 28 T h e E d g e C E O m o r n i n g b r i e f

world

Australia’s daily 6,324 cases, with 55 in intensive care among reuters
Covid cases surge 520 people in hospital.The most populous
state also reported its first known death from Paxlovid, a Pfizer's Covid-19 pill, is seen
past 10,000 for the Omicron variant — a man in his 80s with manufactured in Ascoli, Italy, in this undated
first time underlying health issues who had received handout photo obtained by Reuters on Nov 16, 2021.
two doses of vaccine and became infected
by Ainslie Chandler in his nursing home. South Korea
Bloomberg authorises
Everyone in the state is likely to get Omi- emergency use
bloomberg cron at some point, the state’s health min- of Pfizer’s oral
ister Brad Hazzard said Sunday, according coronavirus
SYDNEY (Dec 27): Australia reported to a local report. treatment
more than 10,000 daily Covid-19 cases for
the first time since the start of the pandemic The second biggest state,Victoria, post- by Joyce Lee
amid the rapid spread of the Omicron strain. ed 1,999 daily cases. Infections also multi- Reuters
plied in smaller states that recently reopened
New SouthWales on Monday recorded domestic borders for the summer holiday SEOUL (Dec 27): South Korea author-
tourism season: Queensland had 784 new ised for emergency use Pfizer’s antiviral
cases on Monday, while South Australia pills targeting Covid-19 as the first of its
counted 842. kind to be introduced in South Korea,
the Ministry of Food and Drug Safety
There was one new case in Western said on Monday.
Australia, the country’s last holdout of the
Covid-zero approach. Its premier Mark Mc- South Korea restored tough distanc-
Gowan extended restrictions introduced last ing curbs last week after easing them
week, such as masks at indoor public venues in November, after a series of record
daily new infections and serious cases
“We are not out of woods yet,” McGowan stretched medical services, despite a
told reporters Monday. vaccination rate of over 92% for those
aged 18 or older.
Most of Australia has shifted toward liv-
ing with the virus, relying on vaccines and a Pfizer’s oral antiviral treatment, called
growing arsenal of treatments. Recent stud- Paxlovid, is “expected to help prevent se-
ies have raised hopes that Omicron symp- rious deterioration of patients admitted
toms may be less severe compared with the to residential treatment centres or being
Delta wave. treated at home”, by diversifying corona-
virus treatments beyond injections cur-
RAMAT GAN, Israel (Dec 27): An Israeli Israel tests rently used in the field, drug safety min-
hospital administered fourth Covid-19 vac- fourth Covid-19 ister Kim Gang-lip told a press briefing.
cine doses on Monday to a test group, as
the country considers approving the meas- vaccine dose, The drug will be used for adults or
ure for vulnerable populations in a bid to awaits ministry children 12 years or older weighing over
outpace a surge in infections fuelled by the 40 kilograms with mild to moderate
Omicron variant. green light symptoms with a high risk of develop-
ing a severe case of coronavirus due to
The Sheba Medical Centre study in Ra- by Dan Williams causes such as underlying diseases.
mat Gan outside Tel Aviv “will zero in on Reuters
efficacy of the vaccine in producing anti- Another oral coronavirus treatment
bodies, and safety, in order to ascertain if ria by raising the age threshold to 70 and called molnupiravir, developed by Merck
a fourth vaccine is needed in general”, a dropping medical workers from the roster, known as MSD outside of the United
spokesman said. The 150 subjects are all Israeli media said. States and Canada, applied for emergen-
medical staff. cy use earlier this month, but the ministry
The Health Ministry has neither con- is still reviewing as they need additional
A Health Ministry expert panel last firmed nor denied that, nor said when info on efficacy, Kim said.
week recommended that Israel become Ash’s decision is due.
the first country to offer a fourth vaccine
dose — also known as a second booster Some 63% of Israel’s 9.4 million pop-
— to those aged over 60, those suffering ulation have received the first two vaccine
from compromised immune systems, and doses, according to ministry data. Almost
medical workers. 45% have also received a third dose, or
booster shot. Close to 2,000 confirmed or
The proposal was welcomed by the suspected Omicron cases have been logged.
Israeli government, which has strug-
gled against a plateauing of turn-out Israel was the fastest country to roll out
for vaccines. initial vaccines a year ago, and became one
of the first to observe that immunity waned
But the fourth shot awaits final approval over time, responding with a widespread
by the ministry’s director-general, Nach- booster programme.
man Ash, a medical doctor whose decision,
officials say, will be made without govern-
ment intervention.

Given concern about the lack of test
data, Ash may amend the eligibility crite-

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 29 T h e E d g e C E O m o r n i n g b r i e f

world

Chinese citizens In a post on China’s Twitter-like Wei- British security
slam Musk bo microblogging platform on Monday, minister
online after one user said Starlink’s satellites were
space station “just a pile of space junk”, while anoth- includes Russia,
near-misses er described them as “American space China among
warfare weapons”. ‘hostile nations’
by Liangping Gao & David Stanway
Reuters With nearly 30,000 satellites and other Bernama
debris believed to be orbiting the plan-
BEIJING (Dec 27): Chinese citizens et, scientists have urged governments MOSCOW (Dec 27): UK Minister of
lashed out online against billionaire Tes- to share data to reduce the risk of cata- State for Security and Borders Damian
la founder Elon Musk’s space ambitions strophic space collisions. Hinds has listed Russia, China and Iran
on Monday after China complained that among “hostile nations”, citing cyber ac-
its space station was forced to take evasive SpaceX alone has deployed nearly tivity concerns and alleged disinformation
action to avoid collision with satellites 1,900 satellites to serve its Starlink broad- campaigns, reported Sputnik.
launched by Musk’s Starlink programme. band network, and is planning more.
“The three countries that I mentioned
The satellites from Starlink Internet “The risks of Starlink are being grad- to you have physical human capability,
Services, a division of Musk’s SpaceX ually exposed, the whole human race will they have a big cyber presence, they’re
aerospace company, had two “close en- pay for their business activities,” a user able to deploy at scale,” Hinds told The
counters” with the Chinese space sta- posting under the name Chen Haiying Telegraph on Sunday (Dec 26), claiming
tion on July 1 and Oct 21, according to said on Weibo. that China, Russia and Iran “are involved
a document submitted by China earlier in multiple ways” in terms of spies on the
this month to the UN’s space agency. US space agency NASA was forced ground, cyber attacks, soldiers on stand-
to abruptly call off a spacewalk at the by, and disinformation campaigns.
“For safety reasons, the China Space end of November, citing risks posed by
Station implemented preventive collision space debris. Musk tweeted in response The minister added that North Korea
avoidance control,” China said in a doc- that some Starlink satellite orbits had is a fourth hostile state.
ument published on the website of the been adjusted to reduce the possibility
United Nations Office for Outer Space of collisions. At the start of December, the Russian
Affairs. Foreign Intelligence Service said the pro-
China began constructing the space vocative and groundless statements by
The complaints have not been inde- station in April with the launch of Tian- the head of the UK Secret Intelligence
pendently verified. SpaceX did not imme- he, the largest of its three modules. The Service, Richard Moore, about the al-
diately respond to a request for comment. station is expected to be completed by the leged threats emanating from Russia,
end of 2022 after four crewed missions. have hampered the chances of a possi-
ble Russian-UK dialogue.
Musk has become a well-known figure
in China, though Tesla’s electric-vehicle Moore said at the end of November
business has come under growing scru- that London was seeing serious threats
tiny from regulators, especially after a emanating from Russia and was going
customer climbed on top of a Tesla car to make every effort to contain and re-
at the Shanghai auto show in April to pel the threats.
protest against poor customer service.
Moscow has repeatedly stressed that
reuters Russia does not threaten any country and
does not plan any attacks, calling such
allegations groundless.

Elon Musk Read also: Russia plans security talks with
US before NATO meeting Click here

t u e s d a y DE C E M b e r 2 8 , 2 0 2 1 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 4,603.00-46.00 OIL US$ 76.09-0.05 RM/USD 4.1832 RM/SGD 3.0813 RM/AUD 3.0162 RM/GBP 5.6045 RM/EUR 4.7305

Top 20 active stocks

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

XOX BHD 123.70 0.000 0.030 -72.73 136.7

AT Systematization Bhd 96.60 0.000 0.035 -81.08 184.9

SMTrack Bhd 83.7 0.005 0.14 -22.22 79

ATA IMS Bhd 64.9 -0.055 0.655 -72.48 787.9

Borneo Oil Bhd 50.9 -0.005 0.025 -37.5 183.7

Impiana Hotels Bhd 48.4 -0.005 0.075 -6.25 108.3

Saudee Group Bhd 41.6 0 0.055 -86.81 51

Sapura Energy Bhd 41 0 0.045 -64 719.1

Top Glove Corp Bhd 39 0.17 2.36 -60.76 18896.8 World equity indices

BCM Alliance Bhd 38.1 -0.005 0.02 -91.64 31.3

PUC BHD 33.4 0.010 0.160 0.00 222.2 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

Bintai Kinden Corp Bhd 33.3 -0.01 0.225 -63.41 124.7 (%) (%)
DOW JONES 35,950.56 196.67 0.55 INDONESIA 6,575.44 12.54 0.19
Pasukhas Group Bhd 32.4 0 0.02 -94.46 23.1

Widad Group Bhd 32.1 -0.005 0.350 -55.97 963.4 S&P 500 4,725.79 29.23 0.62 JAPAN 28,676.46 -106.13 -0.37

My EG Services Bhd 27.6 0.03 1.07 11.46 7914.4 NASDAQ 100 16,308.21 128.07 0.79 KOREA 2,999.55 -12.88 -0.43

Supermax Corp Bhd 24.6 0.04 1.46 -72.88 3949.1 FTSE 100 7,372.10 -1.24 -0.02 PHILIPPINES 7,254.80 72.94 1.02

Meridian Bhd 24.2 0 0.055 -87.06 41.4 AUSTRALIA 7,420.30 32.73 0.44 SINGAPORE 3,104.24 -4.04 -0.13

Kejuruteraan Asastera Bhd 22.1 0.000 0.260 -55.43 462.3 CHINA 3,615.97 -2.08 -0.06 TAIWAN 18,048.94 87.30 0.49

Malaysian Genomics Resource 21.8 0.09 1.15 12.75 142.8 HONG KONG 23,223.76 30.12 0.13 THAILAND 1,636.50 -0.72 -0.04

Careplus Group Bhd 21.6 0.03 1.07 -47.67 607.6 INDIA 57,420.24 295.93 0.52 VIETNAM 1,488.88 11.85 0.80

Data as compiled on Dec 27, 2021 Source: Bloomberg Data as compiled on Dec 27, 2021 Source: Bloomberg

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

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

SHH Resources Holdings BHD 0.55 65.2 48.4 4.81 54.5 Eduspec Holdings Bhd 0.015 -25.000 8420.6 -25.00 45.7

Fintec Global Bhd 0.02 50.0 4,785.00 -81.25 86.9 BCM Alliance Bhd 0.020 -20.000 38103.2 -91.64 31.3

EA Holdings Bhd 0.02 33.3 787.0 -33.33 123.4 Sanichi Technology Bhd 0.025 -16.670 667.80 -91.15 35.1

Metronic Global Bhd 0.02 33.3 676.2 -80.00 43.4 AE Multi Holdings Bhd 0.025 -16.670 275.0 -79.53 54.1

Anzo Holdings Bhd 0.03 20.0 179.3 -64.71 33.5 Borneo Oil Bhd 0.025 -16.670 50854.7 -37.50 183.7

Mlabs Systems Bhd 0.03 20.0 60.5 -62.50 43.5 XOX Networks Bhd 0.030 -14.290 745.6 -87.37 28.4

Trive Property Group BHD 0.04 16.7 17.0 -74.19 44.2 Aldrich Resources Bhd 0.035 -12.500 80 -56.25 35.5

Key Asic Bhd 0.08 15.4 2,668.60 -6.25 102.2 Top Builders Capital Bhd 0.035 -12.500 2597.0 -69.57 24.7

PDZ Holdings Bhd 0.04 14.3 1931.1 -92.65 20.1 Ageson Bhd 0.045 -10.000 21006.8 -65.38 70.1

Ea Technique M Bhd 0.09 13.3 139.6 -71.19 45.1 XOX Technology Bhd 0.045 -10.000 22.0 -30.77 40.2

Eden Inc Bhd 0.13 13.0 1021.0 -18.75 59.7 Sinaran Advance Group Bhd 0.045 -10.000 120.0 -82.35 31.7

Permaju Industries Bhd 0.05 12.5 496.7 -74.29 96.8 Tomypak Holdings BHD 0.440 -9.280 15851.2 -39.73 189.7

Hock Seng LEE BHD 1.21 11.0 1324.5 21.00 664.9 BSL Corp Bhd 1 -8.26 3196.2 426.32 197

Digistar Corp Bhd 0.06 10.0 143.7 -39.59 43.0 Tanco Holdings Bhd 0.225 -8.160 8498.6 350.00 376.4

Scomi Energy Services Bhd 0.06 10.0 22.7 -42.11 25.8 ATA IMS Bhd 0.655 -7.750 64873.0 -72.48 787.9

Coastal Contracts Bhd 1.33 9.9 4851.0 84.72 695.0 Khee San BHD 0.120 -7.690 10.0 -55.56 13.7

Mieco Chipboard BHD 0.56 9.8 2712.5 -0.99 560.0 Minda Global Bhd 0.060 -7.690 794.0 0.00 79.3

Malaysian Genomics Resource 1.15 8.5 21847 12.75 142.8 Vortex Consolidated Bhd 0.060 -7.690 308.0 -69.14 43.9

Hume Cement Industries Bhd 1.15 8.5 79.6 -6.50 576.2 MMAG Holdings Bhd 0.070 -6.670 822.5 -84.78 91.9

LKL International Bhd 0.065 8.33 5987.6 -92.9 50.7 Zelan Bhd 0.070 -6.670 367.5 -39.13 59.1

Data as compiled on Dec 27, 2021 Source: Bloomberg Data as compiled on Dec 27, 2021 Source: Bloomberg

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

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

Genetec Technology Bhd 37.32 0.66 69 2057.23 1,952.50 AEON Credit Service M Bhd 13.400 -0.20 51.2 11.67 3421.1

Nestle Malaysia Bhd 133.00 0.50 18.3 -4.25 31,188.50 Fraser & Neave Holdings Bhd 24.800 -0.18 33.10 -22.69 9096.1

SHH Resources Holdings BHD 0.55 0.22 48.4 4.81 54.50 PMB Technology Bhd 12.100 -0.16 117.1 164.19 2572.6

Kuala Lumpur Kepong Bhd 21.62 0.20 186.2 -8.70 23,303.90 UPA Corp Bhd 2.200 -0.15 441.0 4.27 169.9

Petronas Gas Bhd 17.48 0.18 1,636.60 2.06 34588.2 Rapid Synergy Bhd 9.980 -0.14 35.2 51.21 1066.8

Petronas Dagangan Bhd 20.00 0.18 189.10 -6.54 19,869.10 Imaspro Corp Bhd 2.570 -0.12 296.5 27.23 205.6

Harrisons Holdings Malaysia 5.00 0.18 0.2 27.55 342.40 Kesm Industries Bhd 12.120 -0.12 7.9 -10.75 521.3

Top Glove Corp Bhd 2.36 0.17 38,963.40 -60.76 18,896.80 Ajinomoto Malaysia Bhd 15.200 -0.10 14.9 -5.12 924.1

RCE Capital Bhd 3.77 0.17 541.50 37.09 1379.3 Hong Leong Financial Group 17.260 -0.10 4.3 -4.43 19766.9

Hong Leong Bank Bhd 18.66 0.16 1,119.80 2.53 40,449.60 BSL Corp Bhd 1.000 -0.09 3196.2 426.32 197.0

United Malacca Bhd 5.25 0.15 21.2 2.94 1,101.30 Country Heights Holdings BHD 1.530 -0.09 6.4 21.43 418.5

Bintulu Port Holdings Bhd 4.8 0.15 0.1 25.33 2208 Optimax Holdings Bhd 1.300 -0.08 1611.2 39.78 351

Coastal Contracts Bhd 1.33 0.12 4,851.00 84.72 695.00 KLCCP Stapled Group 6.500 -0.08 7.4 -8.19 11734.7

Press Metal Aluminium Holdings 5.65 0.12 3862.5 34.68 45,630.60 Malayan Cement Bhd 2.560 -0.07 168.8 2.40 3354.1

Hock Seng LEE BHD 1.21 0.12 1324.5 21.00 664.90 ATA IMS Bhd 0.655 -0.06 64873.0 -72.48 787.9

Chin Hin Group Bhd 2.46 0.11 2,058.30 161.70 2176.4 Greatech Technology Bhd 6.65 -0.05 249.8 46.15 8326.7

Tenaga Nasional Bhd 9.41 0.1 1934.1 -6.2 53882.5 UMW Holdings Bhd 3.02 -0.05 93.1 -11.18 3528.2

DiGi.Com Bhd 4.00 0.10 1232.4 -3.38 31,100.00 Chin Teck Plantations BHD 7.050 -0.05 7.8 7.07 644.1

Latitude Tree Holdings BHD 1.64 0.1 36.8 -13.1 318.7 Tomypak Holdings BHD 0.44 -0.045 15851.2 -39.73 189.7

Bursa Malaysia Bhd 6.390 0.090 415.5 -22.32 5,171.4 BIG Industries Bhd 0.76 -0.045 3351.7 67.03 40.2

Data as compiled on Dec 27, 2021 Source: Bloomberg Data as compiled on Dec 27, 2021 Source: Bloomberg


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