CEOMorningBrief WEDNESDAY, FEBRUARY 7, 2024 ISSUE 713/2024 theedgemalaysia.com WALL STREET SNUBS CHINA FOR INDIA IN HISTORIC MARKETS SHIFT p18 CMB_190mm(w)x50mm(h)_7Feb2024_Final OL.pdf 1 1/31/2024 2:46:50 PM HOME: REDtone Digital bags RM398 mil contract from Mampu p4 Vincent Tan files defamation suit against Raja Petra over Selangor Maritime Gateway project p6 Hartalega logs second consecutive quarterly profit in 3Q; Red Sea crisis hurts sales p12 WORLD: Citi says US tech stocks face risk of big sell-off on positioning p18 Alibaba’s 80% loss may extend on competition worries p20 Report on Page 4. Eco World International plans further RM500 mil capital repayment after RM1.5 bil last year WWW.SPANCO.COM.MY MACC looking at 90s Spanco deal, to call in then PM for statement Report on Page 3.
WEDNESDAY FEBRUARY 7, 2024 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Clarify tenure of progressive wage policy’s cash incentives to entice employers’ participation, says MEF SC launches new gatekeeping approach for capital market intermediaries, recognised market operators KUALA LUMPUR (Feb 6): There are concerns over voluntary participation of employers in the progressive wage policy, amid uncertainties surrounding the sustainability of the government’s high cash incentives, said Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan. Under the progressive wage policy, the government will offer employers up to RM200 as a monthly cash incentive for entry-level workers they hire, and RM300 for the non-entry level, for a period of 12 months. The policy — which adopts a model similar to Singapore’s — will target formal-sector workers with monthly income of between RM1,500 and RM4,999. “Our main worry is what will happen after 12 months? Anything beyond the 12 months depends on the financial capacity of the government. It will be very difficult to convince employers to participate in the programme, because after the 12 months, what will happen to the status of the subsidy? “Can employers that voluntarily implement the policy opt out? There may be situations where the employers cannot sustain their participation. KUALA LUMPUR (Feb 6): Securities Commission Malaysia (SC) has introduced a new gatekeeping approach that will reduce the time to market for intermediaries and operators. The Focused Scope Assessment (FSA), a new gatekeeping approach for new eligible Capital Market Intermediaries (CMIs) and Recognised Market Operators (RMOs), is aimed at advancing the capital market and complementing the growing landscape. According to the SC, the FSA will evaluate the applicant’s operational and regulatory readiness in a more targeted and efficient manner by reducing the time to market for CMIs and RMOs from more than six months to three months. The FSA, which takes effect immediately via amendments to the Guidelines on Recognised Markets, will also require applicants to have an independent party BY LUQMAN AMIN theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com validating their business policies and procedures as part of their submission to the SC. SC referred to eligible CMIs to include corporate finance advisers, investment advisers, fund management — boutique portfolio management, financial planners, venture capital and private equities and digital asset custodians. SC chairman Datuk Seri Dr Awang Adek Hussin said that the FSA reflects the SC’s recognition of the crucial role of micro, small and medium enterprises (MSMEs) in driving the nation’s growth and development. “As at 3Q2023, the equity crowdfunding (ECF) and peer-to-peer (P2P) platforms have collectively raised approximately RM5.9 billion, benefiting almost 10,000 MSMEs. This commitment to develop a more progressive and robust regulatory framework reflects the SC’s recognition of the crucial role these businesses play in driving the nation’s growth and development,” Awang Adek said. The SC also made amendments to the Guidelines on Recognised Markets to ensure a level playing field for all RMOs, particularly in terms of the capital requirement and the practices against financial crimes, such as money laundering and terrorist financing. “So it’s better if the government commits earlier to say how long this subsidy will last,” he told The Edge on the sidelines of the Empowering Tomorrow’s Workforce Through Revolutionary Progressive Wage System event hosted by the MEF on Tuesday. The Malaysian government is expected to conduct a pilot project for the initial roll-out of the progressive wage policy in June, involving the participation of 1,000 selected firms. It is understood that the government has not yet finalised which companies or sectors will participate in the pilot project. In comparison to the neighboring country, Shamsuddin highlighted that Singapore had made an early commitment for five years, from 2022 to 2026, through the Progressive Wage Credit Scheme to support wage increases for lower-wage workers. “What will happen if our government says that after 12 months, we don’t have the money to go with the [progressive wage policy] programme? Are we going to stop it? Or are employers able to take back increases they have given, which is not possible?” he said. Shamsuddin also touched on the growing challenge of the cost of living outpacing wage growth. He further urged the government to explore alternative measures to address this issue, aiming to better regulate the cost of living and create a more favourable environment for both the people and businesses. Read also: Govt yet to finalise sectors for initial progressive wage policy roll-out, says deputy economy minister HOME
WEDNESDAY FEBRUARY 7, 2024 3 THEEDGE CEO MORNING BRIEF HOME Eco World International plans further RM500 mil capital repayment after RM1.5 bil last year BY IZZUL IKRAM theedgemalaysia.com KUALA LUMPUR (Feb 6): Eco World International Bhd (EWI) plans to reduce its share capital by a further RM500 million to pay a targeted 21 sen per share in dividends or RM504 million in total payout over the next two years. In a Bursa Malaysia filing on Tuesday, EWI mentioned that the targeted distribution amount of RM504 million is only after setting aside funds for the group’s estimated working capital and funding requirements. It is also subject to EWI meeting its sales targets and meeting the relevant regulatory requirements. The proposed capital reduction is also to provide additional headroom for further declaration of dividends in the future, in excess of the targeted distribution amount, it said. The group intends to declare a first tranche of dividends amounting to at least RM144 million. This means shareholders of EWI can expect to be getting at least six sen per share in dividends in the first tranche. EWI counts billionaire Tan Sri Quek Leng Chan as one of its largest shareholders with a 27% stake through GLL EWI (HK) Ltd, while founder Tan Sri Liew Kee Sin has a 10.27% direct stake in the group. In announcing the deal, EWI president and chief executive officer Datuk Teow Leong Seng said that the strong appreciation of the British pound against the ringgit had enabled it to repatriate more sales proceeds in ringgit terms than anticipated. “The gearing of our group is currently close to nil except for one term loan at our joint-venture company, EcoWorld London, for which our group has set aside Major shareholders’ assumed payout from capital reduction-enabled dividends 2024-2025 FY2023 payout targeted payout Estimated total Direct shareholding (39 sen per share) (21 sen per share) payout 2023-2025 Shareholder Shares (mil) Stake (%) (RM mil) (RM mil) (RM mil) Datuk Leong Kok Wah 2.00 0.08 0.78 0.42 1.20 Eco World Capital (International) Sdn Bhd (Wholly-owned unit of Eco World Development Group Bhd)* 648.00 27.00 252.72 136.08 388.80 Sinarmas Harta Sdn Bhd* 78.73 3.28 30.70 16.53 47.24 GLL EWI (HK) Ltd (Wholly-owned unit of GuocoLand Ltd)** 648.00 27.00 252.72 136.08 388.80 Tan Sri Liew Kee Sin 246.54 10.27 96.15 51.77 147.92 Liew’s family (spouse and child) 44.77 1.87 15.20*** 9.40 24.60 Notes: Direct shareholding as at Feb 6, 2024. Assumes unchanged shareholding upon ex-dates of 2024-2025 dividends *Deemed indirect interest of Leong **Deemed indirect interest of Tan Sri Quek Leng Chan ***Payout from 33 sen interim dividend calculated based on shareholding as at Sept 8, 2023 Source: Bursa Malaysia sufficient funds for purposes of repaying such a loan following its maturity in March 2024,” he said. Interestingly, Teow also noted that the group’s current working capital requirement is expected to be lower than those in the previous years, “in the absence of any immediate plans to undertake new launches or acquisitions in the near term”. “After taking into consideration our reduced working capital and funding requirements, and given the limited development opportunities on the horizon, our group will continue to focus on monetising our completed stocks for cash generation,” said Teow. This is not the first time that EWI embarked on a capital reduction to pay off its shareholders. In August last year, the group undertook RM1.5 billion in share capital reduction, which eliminated its accumulated losses and facilitated a 33 sen interim dividend, as well as a six sen final dividend. The total payout involved then was RM792 million for the interim dividend and RM144 million for the final dividend. According to a bourse filing on Tuesday, EWI’s RM500 million capital reduction will slash the group’s share capital to RM592.45 million from RM1.09 billion currently. As the group had pro forma retained earnings of RM334.18 million as at end-October 2023 (less the RM144 million final dividend payout), the capital reduction will raise its retained earnings to RM843.01 million (less RM170,000 in estimated expenses), which the group intends to return to shareholders via dividend distributions. EWI has set a targeted dividend distribution of 21 sen per share or RM504 million in total payout in 2024 to 2025, after setting aside funds for working capital and funding requirements. Nonetheless, the group did note that its dividend distribution target of RM504 million is solely the group’s internal target, and is neither a financial estimate, forecast nor projection, and it had not been reviewed by an external auditor. It is also subject to EWI obtaining shareholders’ approval for the capital reduction in the upcoming 10th annual general meeting, achieving its internal sales target of RM850 million for the financial year ending Oct 31, 2024, and meeting the relevant legal and regulatory requirements. The capital reduction is expected to be completed by the first half of 2024. Entities linked to trio of largest shareholders entitled to RM320.29 mil of targeted dividends Assuming shareholdings remain unchanged, the bulk of RM320.29 million or nearly 70% of the group’s dividend payout target is to go towards entities related to the group’s three largest shareholders. Its largest shareholder Datuk Leong Kok Wah controls some 728.73 million shares or 30.36% stake via Eco World Capital (International) Sdn Bhd (EWCI) and Sinarmas Harta Sdn Bhd. CONTINUES ON PAGE 4
WEDNESDAY FEBRUARY 7, 2024 4 THEEDGE CEO MORNING BRIEF HOME REDtone Digital bags RM398 mil contract from Mampu Govt fleet management contract: MACC looking at 90s Spanco deal, to call in then PM for statement BY ADAM AZIZ theedgemalaysia.com theedgemalaysia.com KUALA LUMPUR (Feb 6): The Malaysian Anti-Corruption Commission (MACC) will call up all key decision makers involved in the awarding of a government contract to Spanco Sdn Bhd back in the 90s, including the prime minister and finance minister at the time, Berita Harian reported. The process of taking the statements of the individuals involved is necessary to complete the agency’s investigation on the contract, namely for the supply, maintenance and management of the government’s fleet of vehicles, the report quoted MACC chief commissioner Tan Sri Azam Baki as saying. “We will call up anyone who made the decision at the time, who decided to award the project to Spanco. “Whoever involved then including the prime minister and the finance minister will be called in for statement taking, and to find out what they know about the case,” Azam was quoted as saying at a press conference after “Program Cakna Rasuah” with Sarawak media practitioners on Tuesday. The MACC is investigating the 2020 award of government fleet management contract to Spanco. It is the company’s second such contract, as it had a 25-year mandate to manage the government’s fleet of vehicles from 1993 to 2018. The prime minister at the time was Tun Dr Mahathir Mohamad, whose tenure ended at end-October 2003. Datuk Seri Anwar Ibrahim, Malaysia’s current prime minister, was finance minister up until September 1998. Upon Anwar’s sacking then, Mahathir took on the finance portfolio until January 1999, before it was taken up by Tun Daim Zainuddin until May 2001 — following which Mahathir again took back the portfolio until around his resignation as PM. In 2004, the Ministry of Finance ordered a review of the Spanco deal as it was believed that the government had overpaid for the services. It was later reported that the government was paying a total of RM221.6 million per year to Spanco, to rent a total of 10,963 Proton cars for official use. On Dec 11, 2019, Cekap Urus Sdn Bhd, a joint venture between Berjaya Group and Naza Group received a letter of intent (LOI) from the government for the fleet management contract; however, it was terminated a year later on Dec 22, 2020. In July last year, Berjaya Group founder Tan Sri Vincent Tan filed a suit against the Finance Ministry and Spanco regarding the terminated LOI, alleging that the contract was awarded to Spanco even though its offered price was higher by RM700 million. This prompted the MACC to open an investigation into the issue. “The issue reported to the MACC is when questions were raised following the cancellation of the contract to a company, and how come Spanco secured the contract from then to now, that is the focus of the investigation currently,” Azam was quoted as saying. “We have called in more than 20 individuals, and have also frozen around 80 accounts of companies and individuals linked to the case,” he added. According to SSM data, Spanco’s shareholders are Jati Rata Sdn Bhd (46%), Tan Sri Robert Tan Hua Choon (24.65%), Datuk Seri Tan Han Chuan (14.67%), Datin Tan Ching Ching (9.68%) and Minhat Mion (5%). KUALA LUMPUR (Feb 6): REDtone Digital Bhd has bagged a RM398.1 million contract from the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) to provide unified communications solutions. In a filing with Bursa Malaysia on Tuesday, REDtone said the MyGovUC 3.0 contract was awarded to its wholly owned subsidiary REDtone Engineering & Network Services Sdn Bhd for a period of 60 months, commencing on Feb 1. “The contract covers the government’s unified communications including electronic mail system, calendar system, audio & video conferencing, chat and chat spaces, directory management, as well as change management, including user training, software support, security operation centre, network operation centre and helpdesk covering information security management,” it added. REDtone said the contract will not have any effect on the group’s issued share capital and substantial shareholders’ shareholdings. The contract is expected to contribute positively to the future earnings of REDtone Group. REDtone shares closed up 4.5 sen or 5.08% at 93 sen on Tuesday, with 5.17 million shares traded. Its market capitalisation stood at RM727.7 million. The stock has risen 27.4% so far this year and 75.47% over the last one year. Leong’s directly owned two million shares or 0.08% stake entitles him an assumed RM420,000 of the total targeted dividend payout. Meanwhile, EWCI’s 628 million shares (27%) and Sinarmas’ 78.73 million shares (3.28%) in EWI entitle the pair to RM136.08 million and RM16.53 million of the payout respectively. Meanwhile, Quek’s GLL EWI, a unit of Singapore-listed GuocoLand Ltd, which owns 648 million shares or a 27% stake in EWI, would be entitled to RM136.08 million of the targeted payout. Meanwhile, Liew and his family’s 291.31 million shares or 12.14% stake would give rise to an entitlement of RM61.17 million. With RM350.29 million of the targeted payout accounted for assuming the three parties’ share of the targeted dividend, the remaining RM153.71 million will go towards the remaining minority shareholders, who collectively own a 30.5% stake. Shares in EWI ended unchanged at 31.5 sen on Tuesday, giving the group a market capitalisation of RM756 million. FROM PAGE 3 REDTONE MALAYSIA
WEDNESDAY FEBRUARY 7, 2024 5 THEEDGE CEO MORNING BRIEF H O W T O E N T E R Download entry forms on bmspa.theedgemalaysia.com For enquiries, contact The Edge Corporate Communications at: [email protected] S U B M I S S I O N D E A D L I N E All entries must reach The Edge Communications Sdn Bhd, Lobby Level, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor by 5pm, Wednesday, 21 February 2024 Awards results audited by Deloitte AWA R D S O B J E C T I V E Promote sustainable real estate in Malaysia through recognition of: • Malaysia’s best property management practices • Property in Malaysia designed and built for sustainability NO W OPEN fO R ENTRIES ( No F ees required ) • All Residential, Office, Mixed Development, Specialised and Retail properties managed in-house/by property building managers • Strata and Non-strata buildings • Re-purposed buildings ALSO OPEN fOR SUBMISSION ( No F ees required ) • The Edge Malaysia’s responsible developer: Building sustainable development Award • The Edge-iLAM Malaysia’s sustainable Landscape Award Enter now! PRESENTED By MAiN PARTNER SUPPORTED By
WEDNESDAY FEBRUARY 7, 2024 6 THEEDGE CEO MORNING BRIEF HOME AGC to object to Aman Palestin’s bid to cancel MACC freeze on bank accounts Vincent Tan files defamation suit against Raja Petra over Selangor Maritime Gateway project BY HAFIZ YATIM theedgemalaysia.com BY TARANI PALANI theedgemalaysia.com KUALA LUMPUR (Feb 6): Tycoon Tan Sri Vincent Tan and his company Berjaya Land Bhd have filed a defamation suit against blogger Raja Petra Kamarudin for reposting a defamatory speech by Kedah Menteri Besar (MB) Datuk Seri Muhammad Sanusi Md Nor over the Selangor Maritime Gateway (SMG) project on Raja Petra’s Twitter (now known as X) and YouTube accounts. Tan had filed a similar suit against Sanusi about six months ago. Tan’s lawyers from Messrs Pierre Chuah & Associates filed the suit against Raja Petra on Oct 5 last year at the Shah Alam High Court. However, they had to utilise substitute service by placing advertisements in newspapers late last month as Raja Petra is now based in the UK. In the advertisement, Tan’s lawyers indicated that 73-year-old Raja Petra, or better known as RPK, needs to make an appearance in court within 14 days of the publication of the advertisement, otherwise judgement would be entered. Tan and Berjaya Land claimed that the reposted speech in RPK’s Twitter and YouTube accounts implies that Tan and the company had engaged in corrupt business and were cronies of Prime Minister Datuk Seri Anwar Ibrahim and Selangor MB Datuk Seri Amirudin Shaari. They claimed that the reposting also alleges that they had benefited directly or indirectly from the project, or received a free piece of land measuring 600 acres from the Selangor government and/or Amirudin for Tan’s own business venture. Tan and Berjaya Land claimed that the reposting also suggests that they had given benefits to the Selangor MB or the state government in exchange for the free piece of land and had caused Selangor to lose or incur losses of RM180 million from the purported land. The reposted speech also implies that Tan and Berjaya Land had benefited under the Selangor MB; had acted illegally; had unlawfully, unjustly and unduly profited by receiving monies in connection to the free piece of land; and had defrauded the Selangor state, causing it to suffer losses, they claimed. They also claimed that the reposting of the speech also suggests that Tan and the company were unscrupulous, dishonest and unethical in conducting their business and were of ill-repute. Tan and Berjaya Land denied claims Tan and Berjaya Land in the statement of claim alleged that such notions about them are completely false and untrue as there is no such purported sale. In actual fact, a special purpose vehicle called Landasan Lumayan Berjaya Sdn Bhd (LLBSB) was formed through a joint venture between Menteri Besar Incorporated subsidiary Landasan Lumayan Sdn Bhd (45%) and Berjaya Land’s subsidiary Berjaya Hartanah Bhd (55%) to, among others, clean and develop the Klang River, they said. Tan and Berjaya Land said LLBSB employed property development to focus on affordable housing projects as a means to generate revenue to fund and sustain vital river cleaning initiatives under the SMG project. The SMG project initiative, they claimed, was recognised by the Green World Awards 2023 for its efforts in cleaning the Klang River, and the SMG project to rehabilitate the Klang River is deemed successful in improving the water quality of the river from class 4 to class 2 now. Tan and Berjaya Land denied obtaining or being awarded any 600-acre land valued at RM10 billion when in fact only several parcels of land totalling 103.6 acres, identified as feasible for development and granted approval for alienation, were given to LLBSB with specific conditions. Sanusi is facing another suit over “slanderous” speech from the Selangor MB, and cost of the action from RPK for slander. Prior to this, Tan and Berjaya Land had filed a suit against Sanusi, while Amirudin had filed a separate suit following the allegations made by the Kedah MB. KUALA LUMPUR (Feb 6): The Attorney General’s Chambers (AGC) will be objecting to Aman Palestin’s leave application to commence legal action against the Malaysian Anti-Corruption Commission (MACC) over the non-governmental organisation (NGO)’s frozen bank accounts. Senior federal counsel Nur Irmawatie Daud confirmed this to the media following a brief mention of the matter before High Court judge Datuk Amarjeet Singh Serjit Singh on Tuesday. “Yes, [AGC] will file an objection. We just received the cause papers yesterday,” she said in her message to the press. Aman Palestin’s counsel Muhammad Rafique Rashid Ali also confirmed the matter when speaking to the press on Tuesday. He stressed that there was a need for the matter to be heard urgently as there was a pressing need to send aid to Palestinians impacted by the conflict in the Gaza Strip. He said the authorities are free to conduct their investigations. However, he asked them to release the funds as there are organisations in Turkey, Syria, Yemen and Lebanon on standby to receive the said funds. He also said the non-profit organisation which channels humanitarian aid to Palestine had written two letters to the graft busters regarding the funds — once in November and again in January — but did not receive a reply. Hence, Aman Palestin was left with little choice but to pursue the matter in court. The High Court has set Feb 27 to hear Aman Palestin’s leave application. In its leave application filed on Jan 31, Aman Palestin is seeking a court order to unfreeze all 11 of its accounts and for the freeze order issued in November last year under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA) to be cancelled. The non-profit organisation is also seeking an immediate release of RM11,026,215.60 (approximately RM11 million) for daily expenses, employee salaries, administration and operations cost, as well as its humanitarian work for the next three months. The NGO is also seeking a declaration that it can continue to collect donations from the public and directly channel them to Palestinians, along with damages, costs and other relief deemed fit by the court. Besides the anti-graft agency, among the seven respondents named in the suit were MACC chief Tan Sri Azam Baki, its senior director of investigation Datuk Seri Hishamuddin Hashim, its anti-money laundering division director Datuk Zamri Zainul Abidin, and the government. In November last year, the MACC froze 41 bank accounts belonging to Aman Palestin and several other companies involving more than RM15 million as part of an investigation into the NGO’s alleged misappropriation of RM70 million. Azam said that freezing of the assets was done to facilitate investigations in accordance with Section 44(1) of AMLA, which allows an enforcement agency to issue an order to freeze any property of any person, or any terrorist property.
WEDNESDAY FEBRUARY 7, 2024 7 THEEDGE CEO MORNING BRIEF HOME Reneuco shares to be suspended if it fails to submit annual report by Feb 8 Wentel Engineering gains over 7% after opening flat on ACE Market debut BY HEE EN QI theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com KUALA LUMPUR (Feb 6): Metal fabricator Wentel Engineering Holdings Bhd ended its maiden trading day on Tuesday at 28 sen, up two sen or 7.69%, after opening flat on its ACE Market debut at 26 sen. At market close, the company’s market capitalisation was RM322 million based on an enlarged share capital of 1.15 billion shares. Wentel was also the most active stock on Bursa Malaysia, with 250.78 million shares traded, marking a more than tenfold increase from its opening volume of 19.70 million shares. The stock was trading at a price-earnings ratio of 15.73 times based on a net profit of RM20.48 million and earnings per share of 1.78 sen in its financial year 2022 (FY2022). Wentel raised RM71 million from its initial public offering (IPO), which was oversubscribed by 17.72 times. Group chief executive officer Chuah Chong Syn said the proceeds will primarily be used for the construction of a new manufacturing plant in Johor and the purchase of new machinery and equipment. The plant is expected to commence opercal control) machining 15%, and medical devices 5%. “All the projected increase (in revenue) will be in the security segment, as we are experiencing it now. If there is a semiconductor upsurge in the second half of the year, that will be a bonus for Wentel as well,” he told reporters at a press conference after the listing ceremony at Bursa Malaysia. Chuah pointed out that talent retention has always been a major challenge for the company. As such, he said the company plans to construct workers’ hostels to welcome employees coming from outside Johor Bahru. “We always work with local institutions [such as Universiti Teknologi MARA and Universiti Teknikal Malaysia Melaka] to recruit students to do internships and continue working [with the company] after graduation if they are interested,” he added. TA Securities Holdings Bhd was the principal adviser, sponsor, underwriter and placement agent for the listing exercise. Wentel Engineering Holdings Bhd 0 5 10 15 20 25 25 26 27 28 29 Vol (mil) Sen *28 sen 26 sen *As at market close on Feb 6, 2024 Source: Bloomberg 9am 5.00pm Feb 6, 2024 IPO price: 26 sen ations in the second half of 2025. According to its prospectus, the new plant, consisting of two blocks of single-storey factories and two blocks of workers’ hostels, will be utilised for the fabrication of semi-finished metal products, metal parts and assembly operations. Touching on the company’s prospects, Chuah said the security segment constituted 60% of its revenue, the semiconductor segment 20%, CNC (computer numeriKUALA LUMPUR (Feb 6): Bursa Malaysia has warned Reneuco Bhd that its shares will be suspended if it fails to submit its annual report for the financial year ended Sept 30, 2023, by Feb 8. In a filing on Tuesday, Bursa noted that Reneuco had already failed to submit the annual report by Jan 31, which was the last date of submission under the listing rules. Following that, the renewable energy specialist was given another five market days to submit the report or risk being suspended. Additionally, if Reneuco fails to issue the report within six months from Feb 8, de-listing procedures may be commenced against the group. On Jan 30, Reneuco said it was unable to release the annual report within the stipulated time frame, as its external auditor needed more time to complete its audit. It Wentel Engineering Holdings non-executive chairman Ban Kim Wah (fifth from left) and nonindependent executive director Wong Chun Wei (fifth from right) during the company’s debut on Bursa’s ACE Market on February 6, 2024. added that it was “working towards” the Feb 8 deadline to avoid a suspension in the trading of its shares. The group has changed its name twice in the last four years. It was first called Kumpulan Powernet Bhd, before changing its name to KPower Bhd. The group incurred a net loss of RM125.05 million in its July-September 2023 quarter on the back of revenue of RM4.57 million. The loss was dragged by an impairment of RM132.53 million. Shares in Reneuco closed down 1.5 sen or 15.79% to eight sen, giving the group a market capitalisation of RM89.76 million. Over the past one year, the counter has fallen 73.33% from 30 sen on Feb 7, 2023. ZAHID IZZANI/THE EDGE
WEDNESDAY FEBRUARY 7, 2024 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): After more than five years in talks, precision plastic mould maker Sanichi Technology Bhd has aborted plans with Singapore-based FKS Holdings Pte Ltd to provide fresh produce such as seafood, wagyu beef, fruits and vegetables to international food and beverage (F&B) industry players. It did not reveal the reason. In a bourse filing on Tuesday, ACE Market-listed Sanichi said the two companies had mutually agreed to terminate the memorandum of understanding (MOU) signed in December 2018. Both companies also agreed that each party will not make any claim against the other party due to the termination. It added that the termination does not have any financial impact on Sanichi Group. In December 2018, Sanichi and FKS had inked the MOU with the intent of forming a joint venture (JV) to supply fresh KUALA LUMPUR (Feb 6): Sabah-based NPC Resources Bhd has proposed to divest 7,505 acres (3,037 hectares) of oil palm land in the state, held though three subsidiaries, for RM165.11 million. The group plans to sell the land located in the Labuk-Sugut district to Tamaco Plantation Sdn Bhd, a private company based in Lahad Datu. NPC, in a bourse filing on Tuesday, did not disclose how it is going to utilise the proceeds, the rationale behind the diSanichi aborts plan with Singapore firm to provide fresh produce after five years in talks NPC Resources to sell 7,505 acres of oil palm land in Sabah for RM165 mil KUALA LUMPUR (Feb 6): Advancecon Holdings Bhd announced that its wholly owned subsidiary Advancecon Infra Sdn Bhd (AISB) has bagged a RM27.3 million contract from Mujur Minat Sdn Bhd to carry out site clearing and earthworks construction (stage 1) for the Gamuda Gardens Park mixed development project in Rawang, Selangor. The contract shall commence from Feb 7, 2024 to Dec 16, 2024. “With the new job, our current order book stands at RM432 million, which will sustain the group’s revenue over the next two years,” its chief executive officer Datuk Phum Ang Kia said in a statement. According to the group, the current projects also include earthworks and civil engineering services for infrastructure projects, such as the East Coast Rail Link and West Coast Expressway. Advancecon also undertakes earthworks for numerous property developments, as well as road, industrial and oil & gas projects in Sarawak, which will sustain the group’s earnings for the next two years, the statement added. Prior to the current earthworks contract for the Gamuda Gardens Park project, Advancecon had previously completed earthworks for the adjacent Gamuda Gardens township in Rawang in 2020. The project owner is Gamuda Land, a subsidiary of Gamuda Bhd. At market close on Tuesday, Advancecon shares settled down half a sen or 1.72% at 28.5 sen. Its market capitalisation stood at RM166.57 million. Advancecon bags RM27 mil earthworks contract for Rawang project BY LUQMAN AMIN theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com BY CHESTER TAY theedgemalaysia.com ADVANCECON.COM.MY vestment, or the shareholders of Tamaco. The group said its wholly owned unit Berkat Setia Sdn Bhd will be selling six parcels of land measuring 251.324 acres for RM5.53 million, while 70%-owned Bonus Indah Sdn Bhd will be divesting three parcel of land measuring 4,954 acres for RM108.99 million. Additionally, wholly owned Kian Merculaba Sdn Bhd is disposing of four parcels of land measuring 2,299.75 acres for RM50.59 million. For the cumulative nine-month period ended Sept 30, 2023, NPC recorded a net profit of RM14.54 million, versus a net loss of RM3.78 million for the previous corresponding period, while revenue grew 10% to RM337.11 million from RM305.51 million. NPC attributed the improvement to higher crude palm oil and palm kernel sales volumes, coupled with better fresh fruit bunch production on its land in Sabah and Kalimantan, Indonesia. NPC closed unchanged at RM1.80 a share on Tuesday, valuing the group at RM216 million. produce for the international F&B industry, as well as provide Japanese fine dining cuisine for regional markets, namely Singapore, Malaysia, Indonesia, China and Australia. Under the MOU, Sanichi was supposed to own 70% of the JV company, while FKS would own the rest. When the group announced the MOU, it noted that the JV was expected to set up 25 Japanese fine dining outlets over three years and collaborate with suppliers in Japan for fresh produce to be supplied to international F&B players. Sanichi has been loss-making for its prior three financial years. More recently, the group returned to the black with a RM470,000 net profit for the third quarter ended Sept 30, 2023 (3QFY2023) versus a net loss of RM12.24 million a year earlier, despite revenue slipping 20.8% to RM3.42 million from RM4.32 million in 3QFY2022. However, the return to quarterly profit was insufficient to offset the group’s losses recorded in preceding quarters, leading to a cumulative net loss of RM13.08 million for the nine months ended Sept 30, 2023 (9MFY2023). The group has since changed its financial year end from Dec 31 to March 31, citing “to have a better planning of its financial resources”. Shares in Sanichi ended half a sen or 25% higher at 2.5 sen on Tuesday, valuing the group at RM29.23 million.
WEDNESDAY FEBRUARY 7, 2024 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): AME Real Estate Investment Trust (AME REIT) is expected to post better full year results in 2024 after its latest quarterly and ninemonth earnings came within expectations, said Hong Leong Investment Bank Bhd (HLIB). The projection is supported by the REIT’s full renewal and replacement of its remaining three tenancies in financial year 2024 (FY2024) and an average rental reversion of about 6%, HLIB said in a note on Tuesday. Worth noting that AME REIT’s earnings for the third quarter ended Dec 31, 2023 (3QFY2024), were bolstered by the completed acquisition of Plot 16 Indahpura in October last year. AME REIT’s core net profit of RM9.2 million in 3QFY2024 and net profit of RM26.5 million for the nine months of FY2024 came in within HLIB’s expectations at 78% of the full-year forecast. “AME REIT’s portfolio consists of 34 industrial properties and three industrial-related dormitories. The overall occupancy rate remained robust at 100%. Meanwhile, its gearing level increased to 15.2% (from 11.4% in 2QFY2024). line but we increase our DPR from 95% to 100% as we believe that management will be able to payout our forecasted FY2025 DPU of 7.2 sen (9MFY2024 DPU of 5.48 sen makes up 112% of 9MFY2024 EPU of 4.88 sen). Besides AME REIT’s ample gearing headroom allowing for additional acquisitions, HLIB favoured the REIT due to its strong sponsor with an established track record and brand name (i-Park), as well as the sponsor and management’s complete suite of capabilities in the supply chain of industrial properties. More from brokers: Maybank IB upbeat on Capital A’s PN17 exit plan despite projecting 4Q shortfalls HLIB sees better FY2024 earnings for AME REIT after 3Q net profit meets expectations KUALA LUMPUR (Feb 6): Kenanga Research expects Gas Malaysia Bhd’s net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023) to reach RM88 million, up 3% quarter-on-quarter, bringing cumulative full-year earnings for the financial year 2023 (FY2023) to RM368 million, driven by higher sales volume from the glove sector and higher gas selling price. In a note on Tuesday, the research house maintained its “market perform” rating on the company with a target price of RM3.33 based on weighted average cost of capital (WACC) of 6.5% and terminal growth (TG) of 2%. It also kept its FY2023 to FY2024 margin assumption of RM2.80 to RM2.50 per million British thermal units (mmbtu). “We expect better sales volume sequentially by 4% in 4QFY2023, given the improved business condition especially in the glove sector, which saw its declining sales trend bottom out in 2QFY2023,” Kenanga said, adding that the glove sector made up over 30% of Gas Malaysia’s Kenanga expects Gas Malaysia’s 4Q earnings to hit RM88 mil, driven by higher sales volume and gas price total sales volume pre-pandemic. “On the other hand, 4QFY2023 gas selling price is also likely to improve further, given the DOSM [Department of Statistics Malaysia] LNG [liquefied natural gas] price which rose 5% to RM43.96/mmbtu in 4QFY2023 from RM41.87/mmbtu in the preceding quarter,” Kenanga added. On its outlook, Kenanga opined that Gas Malaysia will remain a strong market player as a key natural gas retailer in Malaysia. It also noted Gas Malaysia’s strong earnings visibility, underpinned by its ability to retain customers, typically via threeyear contracts. Kenanga also highlighted Gas Malaysia’s strong free cash flow generation, anchoring a dividend yield of more than 6%, despite the lack of catalysts, given that its earnings had already peaked in FY2022 with gas prices easing. At the time of writing, Gas Malaysia shares traded up three sen or 0.93% to RM3.27, valuing the company at RM4.15 billion. BY LUQMAN AMIN theedgemalaysia.com BY ANIS HAZIM theedgemalaysia.com Analyst recommendations for AME REIT Research house Recommendation Target price (RM) HLIB Buy 1.41 RHB Research Neutral 1.42 Source: Bloomberg “Looking ahead at FY2025, with only two leases up for renewal, the downside risk of non-renewal of tenancy is minimal with occupancy rates likely remaining at 100%,” it said. Therefore, HLIB maintained its “buy” call on AME REIT with a higher target price (TP) of RM1.41 (from RM1.34) as the research house increased its distribution payout ratio (DPR) assumption for FY2025 to 100%. “We make no changes to our forecasted EPU (earnings per unit) as results were in AME REIT 0 4 8 12 Feb 7, 2023 Feb 6, 2024 1.0 1.1 1.2 1.3 1.4 Vol (mil) RM *RM1.31 RM1.09 *As at 10.54am on Feb 6, 2024 Source: Bloomberg
WEDNESDAY FEBRUARY 7, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): Information technology solutions provider Cloudpoint Technology Bhd is acquiring 75% equity interest each in Unique Central Sdn Bhd (UCSB) and Uniqcen Sales & Services Sdn Bhd (USSSB) for a total of RM26.78 million cash. UCSB is principally engaged in supplying, delivering and installation of data centres, data cabling, fibre optic works, as well as mechanical and electrical services, while USSSB is an electrical contractor. In a filing with Bursa Malaysia on Tuesday, ACE Market-listed Cloudpoint said it has entered into a binding term sheet with sellers — Foo Choy Lim, Wong Wee Kiong and Tan Ki Lok — to negotiate the detailed terms and conditions to be contained in a definitive agreement to be executed in relation to the proposed acquisitions. Cloudpoint is acquiring 562,500 shares, equivalent to 75% of UCSB’s enlarged equity interest, from Foo and Wong for RM14.49 million. It is also buying 75,000 shares, representing 75% of USSSB’s enlarged equity interest, from Foo, Wong and Tan for RM12.29 million. Cloudpoint believes that the proposed acquisitions will allow the group to offer end-toend data centre, hybrid cloud and multi-cloud solutions, as well as green and sustainable data centre solutions to its customers. Cloudpoint’s customers will be able to source, build and manage their data centres including cyber security solutions, from a single solutions provider following the proposed acquisitions. It will also allow Cloudpoint to expand its offerings, increase its revenue and earnings and grow additional recurring income streams to enhance the group’s profitability and shareholders’ value. The proposed acquisitions involve Foo and Wong providing a profit guarantee of RM7.4 million for UCSB for the financial years ending 2024, 2025 and 2026 on an aggregate basis to Cloudpoint, while Foo, Cloudpoint eyes becoming data centre solutions provider via stake buy in two data centre specialists KUALA LUMPUR (Feb 6): Seal Incorporated Bhd is diversifying into solar project engineering, procurement, construction and commissioning (EPCC) by subscribing for ordinary and preference shares of MSR Green Energy Sdn Bhd in a RM15 million deal which could see it raising its stake in the solar EPCC outfit to 20%. The proposed subscription is a related party transaction, as MSR Green Energy (MSRGE) is 50.96%-owned by KVC Corp Sdn Bhd, which is in turn linked to Seal’s 29.22% shareholder Aaron Chen Khai Voon. The injection comes a little over six months after Chen, who has direct and indirect interest of 12.32% in Genetec Technology Bhd, emerged as a substantial shareholder in Seal back in July 2023. Shares of Seal Incorporated have rallied ahead of the announcement, rising by 16.5 sen or 42.86% from its eight-month low of 38.5 sen on Jan 22, to 55 sen at the time of writing. The counter is up half a sen at noon market break, having risen by 1.5 sen to 56 sen earlier. MSRGE has successfully commissioned approximately 176MWp of solar photovoltaic facilities, Seal said in its filing. The company also aims to become a renewable energy (RE) asset owner and venture into EPCC for other RE projects, Seal added. It added that MSRGE’s management is working towards key actions plans “which among others include the development of the green digital park in Johor”. The Seal Incorporated-MSRGE deal comprises subscription of 1.46 million MSRGE shares for RM8.7 million, as well as 1.06 million irredeemable convertible preference shares (ICPS) for another RM6.3 million — both at RM5.94 apiece. The five-year ICPS are non-transferrable and convertible to MSRGE shares on a oneto-one basis. Together with other share placements, share grants and issuances by MSRGE for its acquisitions and fund-raising exercise in the pipeline, Seal would hold up to 20% stake in the company post-ICPS conversion. The entire deal values the solar EPCC player at RM75 million, based Seal subscribes RM15 mil in shares, ICPS of solar EPCC outfit linked to shareholder Aaron Chen BY ADAM AZIZ theedgemalaysia.com BY KANG SIEW LI theedgemalaysia.com Wong and Tan will provide a profit guarantee of RM6.85 million for USSSB on an aggregate basis to Cloudpoint for the three financial years. Additionally, the completion of the proposed acquisitions is subject to, among others, the net tangible asset of UCSB and USSSB as at the completion date of the share sale agreement for the proposed acquisitions will not be less than RM7.14 million, and that the sellers complete the acquisition from UCSB and USSSB of three units of shoplot offices currently being utilised as the headquarter of the two companies. In a separate statement, Cloudpoint chief executive officer Choong Wai Hoong said the proposed acquisitions are expected to contribute positively to the future earnings and improve the financial position of Cloudpoint. The proposed acquisitions are subject to the approvals being obtained from the board of directors and its shareholders. M&A Securities Sdn Bhd has been appointed as the principal adviser for the proposed acquisitions. Cloudpoint shares closed unchanged at 51.5 sen on Tuesday, giving it a market capitalisation of RM271.14 million. The counter has fallen 6.36% so far this year, but only slightly by 0.96% over the last one year. on Seal’s subscription price of RM5.94 per ordinary and preference share. In the financial year ended Dec 31, 2022 (FY2022), MSRGE’s net loss narrowed to RM14.28 million from RM10.12 million in FY2021, as revenue rose 5.15% to RM8.92 million, from RM8.49 million, according to SSM data. At end-2022, it had retained losses of RM13.28 million and negative total equity of RM8.28 million. Comparatively, Seal closed the financial year ended June 30, 2023 (FY2023) with a net profit of RM11.74 million or 3.72 sen per share, on revenue of RM51.5 million — largely attributed to a Sungai Petani land sale in 4QFY2023 for RM37 million. Seal operates in five key segments, namely property construction and timber (both loss-making in FY2023), as well as property investment, property development and property management. Currently, other shareholders of MSRGE include Ong Kah Hui (47.21%) and Qiang Xiaoyu (1.82%). Seal said it arrived at the subscription terms based on various licenses and certification held by MSRGE, its order book and ongoing tenders, and the prospects of the RE industry. MSRGE is also in the process of acquiring a 35%-50% stake in GDP Power Distribution Sdn Bhd, MSR Green Digital Park Sdn Bhd and GDP Solar Farm Sdn Bhd, Seal said. At 55 sen, Seal has a market capitalisation of RM230.9 million.
WEDNESDAY FEBRUARY 7, 2024 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): Financial services business solutions provider Excel Force MSC Bhd is buying the entire stake in Orca Capital Holdings Ltd (OCHL), an investment holding company incorporated in the British Virgin Islands, from Honest Winner Ltd for RM18.15 million through the sale of shares and cash. Under the deal, 50.5 million new shares will be issued to Honest Winner at an indicative issue price of 33.5 sen per share, totalling RM16.92 million, while the balance of RM1.23 million is to be satisfied in cash. The cash consideration is expected to be funded via internal funds. The indicative issue price of 33.5 sen per share is a discount of 7.56% to the five-day volume-weighted average market price of Excel Force MSC shares up to Monday of 36.2 sen. As of Monday, Excel Force MSC had an issued share capital comprising 559.38 million shares. This means the 50.5 million new shares to be issued are equivalent to about 9.03% of the company’s existing shares. Excel Force MSC said it had entered into a share sale agreement with Hong Kong-based Honest Winner for the OCHL stake acquisition. OCHL holds a 20% stake in Chinese firm Shahe Technology (Beijing) Co Ltd (Sandman Studios), which is principally involved in extended reality (XR) content production, proprietary technology development, and XR content publishing. XR is an umbrella term, which includes augmented and virtual reality (AR and VR) technology. According to Excel Force MSC, the proposed acquisition is to use the AR and Excel Force MSC to buy investment firm Orca Capital for RM18 mil KUALA LUMPUR (Feb 5): YTL Land & Development Bhd’s Dedaun Rimba project, located within the 2,259-acre Kwasa Damansara township development, saw its link houses fully sold and its townhouses 80% taken up during a sale preview held on Feb 4. With a gross development value of RM250 million, Dedaun Rimba is a 12.7- acre low-density, gated-and-guarded development comprising 68 units of three-storey link houses and 196 units of 1½-storey townhouses. The link houses, with a built-up area of 2,617 sq ft, come with a five-bedroom layout and are priced from RM1.39 million. The townhouses, with built-ups of 1,559 sq ft, come with a three-bedroom layout and are priced from RM730,000. According to a statement on Tuesday, homebuyers queued up as early as 6am at the YTL Sentul Sales Gallery on the day of the preview to get the first pick of the units. The developer’s registration exercise, it added, attracted more than 6,000 registrants. YTL Land & Development executive director Yeoh Pei Teeng said, “We are humbled by the enthusiastic support of our homebuyers. Due to changing demographics, we constantly navigate market trends and respond to the evolving needs and preferences of homebuyers as there will always be demand for well-designed properties in strategic locations and at the right price.” The statement said the link houses and townhouses at Dedaun Rimba were designed to cater for the young generation and to meet the needs of multigenerational living. The development also features landscaped surroundings featuring a central park, linear parks as well as an exclusive clubhouse with resort-themed lifestyle amenities. It added that Dedaun Rimba is situated opposite Taman Bandar Kwasa Damansara, a 28-acre green, open space designated as a green lung within the township development. Dedaun Rimba is surrounded by the Kota Damansara Community Forest Reserve and the mature suburbs of Petaling Jaya, Subang, Subang Jaya, Shah Alam and Damansara. YTL Land’s link houses in Kwasa Damansara fully sold, townhouses 80% taken up BY CHAI YEE HOONG theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com Read also: UEM Sunrise partners Alliance Bank Malaysia to provide home financing solutions VR technology on the current trading application to improve user experience, which may allow the group to sell its solutions to banks. Hence, it expects this acquisition to contribute positively to enhancing the group’s overall growth prospects. “Furthermore, with the launch of Apple Vision Pro with its spatial operating system, which will revolutionise digital content by blending content with physical space utilising AR and VR technology, the proposed acquisition will provide Excel Force MSC with a first-mover advantage to develop applications using the spatial operating system for commercialisation in tandem with its existing applications and platform,” it added. The proposed acquisition, which is expected to be completed by the first quarter of this year, is subject to approval from Bursa Securities for the allotment and issuance of the 50.5 million new shares. Excel Force MSC shares closed down one sen or 2.82% at 34.5 sen on Tuesday, giving the group a market capitalisation of RM193 million. The stock had fallen 11.54% so far this year. 2- Homebuyers queued up as early as 6am at the YTL Sentul Sales Gallery on the day of preview held on Feb 4. 1- YTL Land & Development’s Dedaun Rimba project in Kwasa Damansara saw its link houses fully sold and its townhouses 80% taken up during a sale preview on Feb 4. 1 2
WEDNESDAY FEBRUARY 7, 2024 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): British American Tobacco (Malaysia) Bhd’s (BAT Malaysia) net profit declined 23.27% to RM47.36 million in the fourth quarter ended Dec 31, 2023 (4QFY2023) from RM61.72 million a year ago (4QFY2022), attributed to significant investments in launching vapor products, resulting in higher operating expenses. Earnings per share dropped to 16.6 sen from 21.6 sen, and quarterly revenue fell by 17.5% to RM635.86 million from RM770.66 million in the previous corresponding quarter, as indicated in the tobacco group’s filing with Bursa Malaysia on Tuesday. BAT Malaysia declared a fourth interim dividend of 15 sen per ordinary share, down from 21 sen offered in the same period last year, amounting to RM42.8 million, payable on March 5. On a quarterly basis, BAT Malaysia’s net profit dropped by 20.44% from RM59.53 million in 3QFY2023, despite a 4.79% increase in revenue to RM606.8 million. This decline in net profit was accompanied by a 24.5% dip in profit from operations, decreasing to RM64 million from RM85 million. For FY2023 overall, BAT Malaysia’s net profit fell by 25.82% to RM194.75 million from RM262.52 million in FY2022, with revenue decreasing by 11% to RM2.3 billion from RM2.6 billion in FY2022. In a separate statement, BAT Malaysia’s managing director Nedal Salem said the group’s financial results were within expectations, given the changing market trends. He acknowledged the higher operating costs incurred as part of the group’s deliberate investment in the multi-category business transition. “Nevertheless, this short-term investment is a deliberate move aimed at growing our position, as we fulfil our purpose to build a better tomorrow,” Nedal said. Looking forward, he expressed cautious optimism about achieving improved financial performance, while continuing to invest and grow Vuse, the disposable vape product. Nedal also reiterated BAT Malaysia’s support for the Control of Smoking Products for Public Health Bill 2023, passed during the Parliament session in December 2023. However, he stressed that any regulatory framework developed under this new law must be sensible and evidence-based, to ensure effective enforcement without fuelling the growth of the black market. “The tobacco black market incidence in Malaysia remained persistently high at 55.6% for 2023. We urge the government to implement the measures announced in the Budget 2024 as soon as possible, to combat the tobacco black market and help recover revenue leakages for the government,” he added. Shares in BAT Malaysia settled four sen or 0.44% lower at RM9.08 on Tuesday, valuing the group at RM2.59 billion. BAT Malaysia’s 4Q net profit down 23% to RM47.36 mil, announces 15 sen dividend KUALA LUMPUR (Feb 6): Hartalega Holdings Bhd recorded a second straight quarterly profit of RM22.38 million in the third quarter ended Dec 31, 2023 (3QFY2024), versus a net loss of RM31.91 million a year before, as lower raw material prices and cost savings from its operational rationalisation exercise more than offset decreased revenue. The improved performance for 3QFY2024 was also due to lower utilities expenses, better production efficiency arising from higher capacity utilisation, coupled with higher interest income and a reversal of certain provision no longer required during the quarter. Earnings per share stood at 0.66 sen in 3QFY2024, versus a loss per share of 0.93 sen in 3QFY2023, the glove maker’s bourse filing showed on Tuesday. Quarterly revenue was down by 10% year-on-year to RM415.64 million, from RM461.84 million a year before, dragged by lower sales volume as the industry is still facing supply chain inventory adjustment, coupled with a decrease in average selling prices. Compared to 2QFY2023, its revenue declined by 8.06% quarter-on-quarter (q-o-q) from RM452.09 million, while net profit sagged by 21.17% q-o-q from RM27.7 million. According to Hartalega, the drop in revenue, against the backdrop of the group’s sales volume, was approximately 3% as it faced logistical challenges arising from the ongoing Red Sea crisis which has disrupted key shipping routes and caused shipment delays. For the nine-month period in FY2024, it reported a loss of RM2.39 million, versus a net profit of RM84.71 million a year before, while revenue fell by 30.88% to RM1.31 billion, from RM1.89 billion previously. Hartalega logs second consecutive quarterly profit in 3Q; Red Sea crisis hurts sales In a separate statement, Hartalega chief executive officer Kuan Mun Leong said despite continued challenges in the glove sector, he saw positive indicators that the ongoing global oversupply is gradually being addressed through key capacity rationalisation efforts, thus easing some pressure on excess supplies in the market. “On the demand front, recent demand stabilisation after the notable decline in 2023 and the expected gradual return to pre-pandemic levels in the later part of 2024 or early 2025 also bodes well for prospects in the industry over the long term,” he added. On glove prospects, Hartalega reckoned that the pressure on average selling prices would remain amid challenging demand-supply fundamentals. Its operational rationalisation exercise is currently in the final phase and slated to be completed by the first quarter of the calendar year 2024. Hartalega’s share price closed down three sen or 1.09% to RM2.72, bringing the group a market capitalisation of RM9.32 billion. Over the past one year, the stock has risen 72%. BY JUSTIN LIM theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com
WEDNESDAY FEBRUARY 7, 2024 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): A majority of cyber security and IT professionals in Malaysia are impacted by burnout and fatigue, according to the British-based security software and hardware company. In a statement on Tuesday, Sophos said the study revealed that burnout was recorded across almost all sectors of cyber security operations, with 90% of respondents saying that feelings of burnout had increased in the last 12 months. Out of these, 55% said that this burnout makes them “less diligent” in their cyber security roles; 21% of respondents identified that cyber security burnout or fatigue contributed to, or was directly responsible for, a cyber security breach and 22% of companies experienced slower than average response times to cyber security incidents. Sophos said the five main causes of cyber burnout and fatigue in Malaysia include: 1. A lack of resources available to support cyber security activities. 2. An increased level of pressure from board and/or executive management. Majority of cyber security, IT professionals in Malaysia experiencing burnout and fatigue, says Sophos Company director loses a record RM11 mil to crypto-investment scam PUTRAJAYA (Feb 6): There is a need to look into enacting new legislation concerning cybercrimes in line with the rapid technological advancements, said Communications Minister Fahmi Fadzil. He said this decision was made in the Working Committee Meeting on the Drafting of New Laws Related to Cybercrime held on Monday and jointly chaired by Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. Fahmi further said that even though certain aspects could be regulated under existing laws in the country, the technical committee would examine the legislation in other nations to ensure online safety. “Many other countries have established specific acts, such as those pertaining to artificial intelligence. We are studying Malaysian laws and also assessing the challenges faced by other countries and how they enact new acts,” he told reporters after the Communications Ministry monthly assembly here on Tuesday. Fahmi, who is also the unity government spokesperson, said the meeting discussed issues and challenges faced by various agencies and ministries regarding online safety, particularly concerning children, and would undertake immediate action to address them. Meanwhile, Azalina, in a post on Facebook, said online services are a necessity and have become the most crucial elements in daily life, but the exploitation of cyberspace has led to an escalating threat of cybercrimes. In another development, Fahmi welcomed the Human Resources Ministry’s commitment to assisting freelance workers and stringers (part-timers) in the media and creative industry. “This is something I have been advocating for a long time. We are scrutinising the specifics considering the different needs for each group. “I also want to hold further discussion with Human Resources Minister Steven Sim on whether we can include aspects such as the invalidity pension and survivor’s pension in the Self-Employment Social Security Scheme for these groups,” said Fahmi. On Monday, Sim was reported as saying that there are approximately 30,000 freelance workers in the sector, and expressed intention to expand Social Security Organisation (Socso) coverage to the group, including through the Self-Employment Social Security Scheme, which provides protection for self-employed individuals. New legislation needed to better tackle cybercrimes, says Fahmi Bernama BY SURIN MURUGIAH theedgemalaysia.com Bernama 3. Persistent alert overload from tools and systems. 4. The routine aspects of the role, which create a feeling of monotony. 5. Increase in threat activity and the adoption of new technologies that foster a more challenging, always on environment. Sophos field chief technology officer Aaron Bugal said at a time when organisations are struggling with cyber security skills shortages and an increasingly complex cyberattack environment, employee stability and performance are critical for providing a solid defence for the business. “Burnout and fatigue are undermining these areas and organisations need to step up to provide the right support to employees especially when, according to our research, 21% of Malaysian respondents identified that cyber security burnout or fatigue contributed to, or was directly responsible for, a cybersecurity breach. “Although there’s no simple fix, an attitude adjustment would go a long way to define the right expectations around what it means to evolve into a cyber-resilient business. “Boards and executive committees need to drive change and demand responsibility from their deputised charges, in essence for better governance around cyber approaches,” said Bugal. Read also: Malaysian employers slow to adopt AI in recruitment, says Hays KUALA LUMPUR (Feb 6): A company director lost RM11,130,123 in a cryptocurrency investment scheme called ‘CCERX’ advertised on Facebook last September. Bukit Aman commercial crime investigation department (CCID) deputy director (Investigation) Datuk Rohaimi Md Isa said the loss was the single largest case of crypto-investment fraud. “The 60-year-old man lodged a police report on Jan 30 at a police station in Sentul, following which police launched an investigation under Section 420 of the Penal Code,” he said on Monday. Rohaimi said since last November, police had received 124 reports from victims of investment fraud nationwide involving a total loss of RM90,364,463.08. Police have since identified 73 companies, 83 bank accounts belonging to companies and businesses and one individual bank account used in this fraud. He advised anyone still engaged in this ‘CCERX’ investment scheme to cease at once and file a police report, while people who want to invest in cryptocurrency transactions should check the legitimacy of the service before doing so.
WEDNESDAY FEBRUARY 7, 2024 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): In a move towards the development of smart cities in Malaysia, Gamuda Land has announced a collaboration with Digital Nasional Bhd (DNB), marking a key step in enhancing 5G connectivity and infrastructure within its townships. The partnership, formalised through a memorandum of understanding (MOU), aims to explore the full spectrum of 5G technology possibilities, focusing on Gamuda Cove @ Kuala Langat, Gamuda Gardens @ Sungai Buloh North and twentyfive7 @ South of Kota Kemuning. In a statement on Tuesday, Jess Teng, chief operating officer for strategic operations at Gamuda Land, highlighted the importance of integrating 5G technology into urban development to ensure the seamless connection of various urban functions. “Our strategic partnership with DNB underscores our commitment to future-proofing our townships, enabling us to offer an elevated living experience through interconnected and innovative solutions,” said Teng. 5G technology is expected to revolutionise the way smart cities operate, offering faster communication for Internet of Things (IoT) devices, enhancing smart home efficiency, and improving community safety and security. The technology’s potential also extends to various sectors including healthcare, emergency services and utilities, promising a resilient Gamuda Land partners DNB to drive smart city initiatives with 5G technology Sime Darby Auto Bavaria in tie-up to offer EV rental services BY CHERYL TAN theedgemalaysia.com Bernama Gamuda Bhd 0 50 100 150 200 Feb 7, 2023 Feb 6, 2024 3.0 3.5 4.0 4.5 5.0 5.5 Vol (mil) RM *RM5.02 RM3.78 *As at 5pm on Feb 6, 2024 Source: Bloomberg infrastructure that can withstand disruptions. Datuk Ahmad Zaki Zahid, chief strategy officer of DNB, expressed optimism over the growing adoption of 5G in Malaysia, noting an adoption rate of 24.7% by the end of December 2023, with 8.2 million 5G service subscriptions. “The adoption of 5G is crucial for the future of smart cities and townships. We are excited to support Gamuda Land in achieving their smart township ambitions,” he said. The partnership also aligns with Gamuda Land’s sustainability goals, including the development of a real-time dashboard to monitor its environmental, social and governance (ESG) initiatives, leveraging 5G technology. This initiative is part of the broader Gamuda Green Plan, aiming to offer transparency and promote sustainable practices within its townships. The parties said that collaboration between Gamuda Land and DNB is set to usher in a new era of smart township development, ensuring that residents and businesses benefit from advanced 5G connectivity, thereby enhancing the overall quality of life and promoting environmental sustainability. Gamuda closed a sen up or 0.2% to RM5.02 on Tuesday for a market capitalisation of RM13.74 billion. KUALA LUMPUR (Feb 6): Sime Darby Auto Bavaria (SDAB) has joined forces with Sime Darby Rent-A-Car Sdn Bhd (SDRAC) — Hertz Malaysia to introduce rental services of electric vehicles (EVs) in conjunction with the Chinese New Year festival. In a joint statement issued on Tuesday, SDAB said that under the pioneer collaboration, the highly popular fully electric BMW iX can be rented with rental prices starting at RM550 per day and RM5,500 per month. Auto Bavaria's managing director Vi Thim Juan said the group is creating a robust ecosystem that further supports the growing adoption of EVs together with Hertz Malaysia, and encourages everyone to take advantage of the festive rental offer. "Auto Bavaria is fully committed to pioneering the utilisation of EVs in Malaysia. This time around, we are leveraging the opportunity to give Malaysians a chance to try our BMW iX for unmatched style and uniqueness that is aligned with the latest trends in EV technology," he said. Meanwhile, SDRAC managing director Harun Mohd Joned said the collaboration also enables customers to explore other extended rental services, including chauffeurs, provision of airport transfers and personalised arrangements for corporate functions, as well as private events. Customers interested in experiencing the BMW iX can make reservations and find more details at www.simedarbycarrental.com or visit the participating Hertz Malaysia outlets in the Klang Valley, Penang or Johor Bharu. Bina Puri hit with winding-up petition by YTL unit over alleged unsettled sum of RM1.7 mil BY EMIR ZAINUL theedgemalaysia.com KUALA LUMPUR (Feb 6): Bina Puri Holdings Bhd said it was hit with a winding-up petition by an indirect subsidiary of YTL Corp Bhd, for an alleged unsettled amount of RM1.74 million. The petitioner, YTL Cement Marketing Sdn Bhd, claimed that Bina Puri had failed to settle a demanded amount of RM1.74 million, including an interest rate of 1.5% per month, as at Nov 30, 2023. “The company remains in discussions with the petitioner to resolve the matter amicably,” said Bina Puri in a filing with Bursa Malaysia on Tuesday. Read the full story “There will be no immediate material financial and operational impact, and no expected loss to the group arising from the petition,” the group added. Hearing for the petition has been fixed for March 25. In November 2023, Bina Puri’s wholly-owned subsidiary Bina Puri Properties Sdn Bhd was served with a winding-up petition by lawyers Messrs Lim Soh and Goonting due to an alleged default in payment.
WEDNESDAY FEBRUARY 7, 2024 15 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 6): The Federal Land Development Authority (Felda) has an important role in ensuring the sustainability of Malaysia’s oil palm industry, so that the fate that befell the country’s rubber industry will not be repeated here, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said. He said Felda, being the largest owner of plantation land in the country at 800,000 hectares (ha), needs to fully utilise its strength by increasing production and focusing on the downstream sector. “Try to imagine. If we are not focused on the downstream industry for the next 15 to 30 years, the oil palm industry will go down the same path as the rubber industry. I don’t want to see that. “We were the largest rubber producer in the world at one time. Today, we are the main producer of rubber products, but we import natural rubber from Vietnam and Thailand, because we do not have enough of it. The strange thing is, we have 420,000 ha of rubber trees belonging to 290,000 smallholders,” he said in his keynote speech at the Felda 2024 Symposium here. Malaysia produced 19.5 million tonnes of oil palm in 2013, while Indonesia produced 26 million tonnes. Malaysia’s production dropped to 18.5 million in 2023, while Indonesia grew its output to 46.5 million, he said. Johari said Indonesia uses half of it for biodiesel production, while Malaysia exports 15 million tonnes. He said the country’s main oil palm players produced an estimated 20 tonnes of fresh fruit bunches (FFB) on a per hectare basis, and suggested that Felda raise its production to more than its 2023 production of 16.49 tonnes per hectare. Therefore, he said it is important for Felda to consolidate its land assets, and complete its infrastructure as best as possible. As an example, if Felda were to produce 18 tonnes of FFB per hectare, its total yield would rise to 14.4 million FFB, and the agency could become the largest producer with 2.8 million tonnes of crude palm oil, he said. “Imagine if the price of palm oil is RM4,000 per tonne, and the estimated cost is RM3,000, we make a RM1,000 profit. Overall, we will make a profit of RM2.8 billion. “So, we have to learn from Felda’s success first, and we put together a strategy for the next 20 to 30 years. I believe that for the 800,000 hectares belonging to Felda, if we are good at it, the fifth and later generation will be proud to be part of Felda,” said Johari. He also envisioned Felda settlers to organise their land into large clusters, and to fully operate their assets to produce downstream products. “So, this oil palm industry is very important to the country. If Felda wants to be socially responsible, it is only ‘sustainable’ if it can make a large profit. No [company] can make a social contribution to society if it does not generate income,” he said. Read also: Felda plans to develop more as a ‘circular economy’ to generate new income, says chairman Felda must ensure oil palm industry does not share rubber’s fate in M’sia, says Johari Ghani KOTA BHARU (Feb 6): The federal government has approved a development allocation totalling RM2.81 billion for Kelantan under the Fourth Rolling Plan for 2024 of the 12th Malaysia Plan, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad. Nik Nazmi, who is also Kelantan State Development Action Council (MTPNg) joint chairman, said this represents an increase of RM0.24 billion, compared to the original allocation for 2023. He said a total of 92 new projects have been approved this year, bringing the total number of projects to 425. “The Works Ministry (KKR) has received the largest allocation this year, which amounts to RM0.8 billion and will be used for 32 projects. “Some major projects under KKR are six packages of the Kota Bharu-Kuala Krai Highway and nine packages of the Lingkaran Tengah Utama (LTU) Expressway from Kuala Krai to Gua Musang. “Fourteen out of the 15 packages are currently in progress, while one package is at the procurement stage, with the total 92 new development projects in Kelantan this year — Nik Nazmi construction cost of RM4.79 billion,” he said at the ICU JPM Kelantan Development Office media night here on Monday (Feb 5) night. His speech text was read by Kota Lama assemblyman Dr Hafidzah Mustakim. Nik Nazmi further said that a comprehensive transportation network is actively being constructed, including highways, the East Cost Rail Link project and the Sultan Ismail Petra Airport. Meanwhile, he said the federal government has also approved new phases for the Integrated River Basin Development Project (PLSB), with Phase 2 of Sungai Kelantan involving a cost of RM1.06 billion, and Phase 3 of Sungai Golok, a cost of RM0.5 billion. “For the record,13 flood mitigation projects at various implementation stages have been approved in this state, with a total cost of RM3.83 billion. “I hope that all quarters, especially the implementing agencies involved, can ensure smooth implementation of these projects and avoid any problems that could lead to delays,” he said. Bernama Bernama Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad SAM FONG/THE EDGE THE EDGE FILE PHOTO
WEDNESDAY FEBRUARY 7, 2024 16 THEEDGE CEO MORNING BRIEF WORLD BEIJING/SHANGHAI (Feb 6): China’s securities regulator said on Tuesday it would suspend brokerages from borrowing shares for lending and cap the size of so-called securities refinancing, as part of further efforts to curb short-selling. The watchdog will also ban securities lending to investors who sell stocks on the same day of purchase, and vowed to crack down on illegal arbitrage using short-selling. Chinese authorities have announced a raft of measures to support share prices after the market plunged to five-year lows last week in an ailing economy. The fresh measures came a day after the China Securities Regulatory Commission (CSRC) vowed “zero tolerance” against malicious short sellers, warning those who dare flaunt the law will “lose their shirts and rot in jail”. The CSRC said on Tuesday that no new business would be allowed for securities refinancing, in which brokerages borrow shares and lend them to clients for short selling. Existing businesses would be gradually wound up. In addition, the watchdog urges brokerages to tighten scrutiny over clients’ trading behaviours. Under China’s regulations, shares cannot be sold on the same day of purchase, but some investors skirt the rules using borrowed shares. The CSRC said that such traders would be banned from borrowing shares. Recent efforts to curb short-selling has led to a 24% drop in securities lending business, to 63.7 billion yuan (RM42.6 billion), the CSRC said. Read also: Top Chinese hedge fund Banxia slashes stocks for ‘survival’ in rout China regulator unveils more curbs on short-selling (Feb 6): Anticipation is mounting for more forceful Chinese government efforts to end the nation’s stock rout, with regulators planning to brief President Xi Jinping on the market as soon as Tuesday. Chinese stocks extended their rebound after Bloomberg reported regulators led by the China Securities Regulatory Commission (CSRC) plan to update the top leadership on market conditions and the latest policy initiatives as soon as Tuesday, according to people with knowledge of the matter. The CSI 300 benchmark closed 3.5% higher in its best day since late 2022. Small-cap equities that have so far borne the brunt of the rout also jumped, with the CSI 1000 gauge up 7%, the most since 2008. While it’s unclear whether any new support measures will come out of the meeting, traders are hoping that this time will be different. Some US$7 trillion (RM33.32 trillion) of value has been wiped off Hong Kong and Chinese equities since their peaks in 2021, and piecemeal approaches to support the economy and stabilise markets have so far failed to lift sentiment. For policymakers, it’s important to stabilise the stock market to avoid further hurting consumer confidence, as China enters the week-long Lunar New Year holiday. “The news that the nation’s number one is holding a meeting is an encouraging development, as it shows that the plunge is getting close to punching through the authorities’ comfort level,” said Li Weiqing, a fund manager at JH Investment Management Co. “It gives me the impression that they are doing everything they can, apart from calling out to the market — now is the time to buy.” The news about the Xi meeting followed a flurry of supportive announcements earlier in the day, including a vow by Central Huijin Investment Ltd, the unit that holds Chinese government stakes in big financial institutions, to buy more exchange-traded funds. Every effort will be made to maintain stable market operations, the securities watchdog said in a follow-up comment. Foreign inflows surged as overseas funds added more than 12 billion yuan (US$1.7 billion or RM8.04 billion) of mainland shares on Tuesday, the most this year. One danger for buyers is that the outcome of the meeting fails to impress, triggering a renewed sell-off. The battered market has seen multiple false dawns over the past year, with stimulus-fuelled rebounds barely lasting more than a few days, as poor economic data and new polXi to discuss Chinese stocks with regulators as rescue bets build icy risks soon sapped sentiment. The equity crash in 2015 suggests any rescue attempt may not turn around the market immediately. Authorities curbed speculative trading, targeted market manipulation, and guided some investors to avoid stock sales back then. Yet stocks took months to eventually bottom out, and peaked at a much lower level than the 2015 high. “Our view has been that state support can indeed lead to a tactical rebound, but we are not sure if that can be enough for a sustained rally,” said Rajat Agarwal, an Asian equity strategist at Societe Generale SA. “Even if we see 2015, the buying started in the summer, but the rebound didn’t last, and the market only bottomed out in early 2016.” As the slump extends, Xi has shown signs of becoming increasingly involved in the nation’s financial and economy policies, including making an unprecedented visit to the central bank late last year. Read the full story Bloomberg Reuters
WEDNESDAY FEBRUARY 7, 2024 17 THEEDGE CEO MORNING BRIEF WORLD Recession fears, which topped last year's survey, fell to third place at 18% as economic growth beats expectations. (Feb 6): Deutsche Bank no longer expect the US economy to tip into recession this year, given cooling inflation and the labour market returning to a “better balance” without unemployment rising significantly. The brokerage earlier expected the economy to enter a mild recession as the Federal Reserve tightened interest rates to tame inflation, narrowing the window for a soft landing. Deutsche Bank said in a note on Monday that it now expects the US economy to grow by 1.9% this year, on a quarterly average basis, compared with its prior forecast of 0.3%. “Though the economy continues to face several headwinds — namely, still-tight credit conditions, rising consumer delinquency rates and a slowing labour market — the resilience to date points to a more benign slowdown in 2024 than we had previously projected,” said Matthew Luzzetti, the brokerage’s chief US economist. Deutsche Bank still expects the Fed to start easing interest rates from June, but now expects 100 basis points (bps) of rate cuts this year, less than its earlier expectation of 175 bps. The US economy grew a faster-than-expected 3.3% in the fourth quarter, amid strong consumer spending, with growth for the full year coming in at 2.5%, shrugging off dire predictions of a recession after the Fed’s aggressive rate hikes. Deutsche Bank no longer expects US recession in 2024 (Feb 6): Inflation and the US presidential election will be the biggest drivers of global markets this year, while liquidity challenges are a growing focus, according to traders surveyed by JPMorgan. Some 27% of traders see inflation as having the biggest impact, followed by 20% for the November election, the survey published on Tuesday showed. Bonds and equities rallied late last year on hopes that slowing inflation would prompt hefty central bank rate cuts this year. But those bets have been scaled back, with Friday’s blowout US jobs data prompting the biggest sell-off in US Treasuries since September. Markets are bracing for further volatility as the US presidential election looms, with former president Donald Trump’s victory in the New Hampshire Republican primary bringing him closer to a rematch with Democrat President Joe Biden. JPMorgan’s global head of digital markets Eddie Wen said greater focus this year on macro and risk events may create shortterm volatility, with particular focus on the release of US monthly jobs and inflation numbers. Recession fears, which topped last year’s survey, fell to third place at 18% as economic growth beats expectations, the survey said. War in Europe, where Russia’s invasion of Ukraine heads into its third year, and the Middle East, where the Hamas-Israel conflict is watched for signs of escalation, followed at 14%. Traders expected volatile markets to remain their top trading challenge, but the share of respondents putting it in first place dropped 18 percentage points from last year to 28%. Liquidity availability neared the top of the list of trading challenges at 24%, up from 22% last year, while access to liquidity remained traders’ biggest market structure concern. Chi Nzelu, global head of macro e-Trading at JPMorgan, said as electronic trading grows in prominence, having consistent access to liquidity across a breadth of providers was becoming more important to investors. Inflation, US election to drive 2024 markets — JPMorgan trader survey BY YORUK BAHCELI Reuters BY ROSHAN ABRAHAM Reuters Read also: US banks see loan demand rising in 2024, Fed survey shows “They want to know that it will continue to be reliable even in shock times, which has broadly been the case across different markets in recent years,” he said. Traders in credit markets and cash equities named liquidity availability as their top challenge. “The market structure within the credit markets is becoming more complicated,” said Wen. “There are more trading platforms to support trading of corporate bonds alongside the emergence of portfolio trading, bloc trading, larger trades, all now becoming more electronic over time.” This meant selecting the best way to execute trades was becoming a key question for investors, he said. REUTERS
WEDNESDAY FEBRUARY 7, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (Feb 6): Investor positioning in US technology stocks is so bullish that any sell-off could trigger a wider rout, according to Citigroup Inc strategists. Wagers on declines in tech-heavy Nasdaq 100 futures have been completely erased, leaving investors overwhelmingly expecting further gains. “The large consensus positioning is a risk that could amplify a turn in the market,” strategists led by Chris Montagu wrote in a note on Monday. US stocks have rallied this year, with the S&P 500 hitting a record high for the first time since 2022, on optimism around a stronger-than-expected economy. Upbeat fourth-quarter earnings from tech mega-caps have also lifted sentiment. Still, investors are turning more cautious after signals from policymakers that the Federal Reserve may not cut interest rates as early as March. JPMorgan Chase & Co strategist Marko Kolanovic said on Monday he doesn’t expect monetary easing to begin until mid-year. Bullish trends in S&P 500 futures stalled last week, although positioning remains net-long, Montagu said. Read also: US SEC set to adopt Treasury market dealer rule as part of market overhaul Citi says US tech stocks face risk of big sell-off on positioning (Feb 6): A momentous shift is under way in global markets as investors pull billions of dollars from China’s sputtering economy, two decades after betting on the country as the world’s biggest growth story. Much of that cash is now heading for India, with Wall Street giants like Goldman Sachs Group Inc and Morgan Stanley endorsing the South Asian nation as the prime investment destination for the next decade. That momentum is triggering a gold rush. The US$62 billion (RM294.5 billion) hedge fund Marshall Wace has positioned India as its biggest net long bet after the US in its flagship hedge fund. An arm of Zurich-based Vontobel Holding AG has made the country its top emerging-market holding and Janus Henderson Group Plc is exploring fund-house acquisitions. Even Japan’s traditionally conservative retail investors are embracing India and paring exposure to China. Investors are paying close attention to the contrasting trajectories of two of Asia’s greatest powers. India, the world’s fastest-growing major economy, has vastly expanded infrastructure under Prime Minister Narendra Modi in his bid to lure global capital and supply lines away from Beijing. China, on the other hand, is grappling with chronic economic woes and a widening rift with the Western-led order. “People are interested in India for several reasons — one is simply it’s not China,” said Vikas Pershad, Asian equities portfolio manager at M&G Investments in Singapore. “There’s a genuine long-term growth story here.” While the bullish sentiment about India isn’t new, investors are more likely now to see a market that resembles the China of times past: a vast, dynamic economy that’s opening up to global money in novel ways. Wall Street snubs China for India in historic markets shift Nobody expects a smooth ride. The country’s population is still largely poor, stock markets are expensive and bond markets insular. But most are making the crossover anyway, calculating that the risks of betting against India are greater. History shows that India’s economic growth and the value of its stock market are closely linked. If the nation continues to expand at 7%, the market size can be expected to grow on average by at least that rate. Over the past two decades, gross domestic product and market capitalisation rose in tandem from US$500 billion to US$3.5 trillion. Aniket Shah, global head of environment, social and governance practice at Jefferies Group LLC, said a recent investor call about India was one of the firm’s best-attended. “People are really trying to figure out what’s going on in India,” he said. Follow the money Capital flows reflect the enthusiasm. In the US exchange-traded fund market, the main fund buying Indian stocks received record inflows in the final quarter of 2023, while the four largest China funds combined saw outflows of almost US$800 million. Active bond funds have put 50 cents to work in India for every dollar they pulled from China since 2022, according to EPFR data. Read the full story BY SRINIVASAN SIVABALAN, CHIRANJIVI CHAKRABORTY & SUBHADIP SIRCAR Bloomberg BY SAGARIKA JAISINGHANI Bloomberg While the bullish sentiment about India isn’t new, investors are more likely now to see a market that resembles the China of times past: a vast, dynamic economy that’s opening up to global money in novel ways.
WEDNESDAY FEBRUARY 7, 2024 19 THEEDGE CEO MORNING BRIEF WORLD (Feb 6): Nvidia Corp and Cisco Systems Inc are teaming up to make it easier for corporations to build their own artificial intelligence (AI) computing infrastructure, an attempt to push the technology beyond the big data-centre providers. Under an arrangement announced on Tuesday, Cisco will offer Nvidia-based equipment — popular for developing AI models — along with its networking gear. For Nvidia, the partnership opens up another channel for its technology. Cisco, meanwhile, gets to capitalise on an AI spending boom that’s helped turn Nvidia into the world’s most valuable chipmaker. “Working closely with Cisco, we’re making it easier than ever for enterprises to obtain the infrastructure they need to benefit from AI, the most powerful technology force of our lifetime,” Nvidia chief executive officer Jensen Huang said in a statement. Cisco will offer M7 server computers that use Nvidia’s latest processors, as well as the chipmaker’s software, AI models and development tools. It’s also offering its own cloud-based software and services for monitoring and managing such systems. “Strengthening our great partnership with Nvidia is going to arm enterprises with the technology and the expertise they Nvidia, Cisco to help companies build in-house AI computing WASHINGTON (Feb 6): Internet giant Google on Tuesday named what it said were some of the worst offenders in the surveillance software industry, and called on the United States and its allies to do more to rein in the sale and misuse of spy tools. Spyware firms often say that their products are meant for the use of governments for national security, but the technology has been repeatedly found to have been used to hack into the phones of civil society, political opposition and journalists in the last decade. The industry has faced increasing scrutiny since the Israeli firm NSO’s Pegasus spyware was found on the phones of various people globally, including human rights defenders. In a report on Tuesday, Google researchers said that while NSO is better known, there are dozens of smaller firms contributing to the dangerous proliferation of spy technology. The findings by Alphabet Inc’s Google are significant because the company has some of the best visibility into hacking campaigns globally, given the vast breadth of its online offerings. “Demand from government customers remains strong and our findings underscore the extent to which commercial spyware vendors have proliferated hacking and spyware capabilities that weaken the safety of the Internet for all,” researchers from Google’s TAG threat-hunting team said in the report. “The private sector is now responsible for a significant portion of the most sophisticated tools we detect.” The United States and several of its allies committed last year to work toward curbing the surveillance software industry, after at least 50 US government employees in 10 countries were found to have been targeted by spyware. The Google researchers named a roster of firms that offer a range of services to Google calls out spyware firms and advocates for tighter regulation BY ZEBA SIDDIQUI & CHRISTOPHER BING Reuters BY IAN KING Bloomberg need to build, deploy, manage and secure AI solutions at scale,” Cisco CEO Chuck Robbins said. The two companies made the announcement at the Cisco Live event in Amsterdam early on Tuesday. It’s part of an effort to spread the deployment of AI hardware beyond its current concentration in data centres owned by Microsoft Corp, Amazon.com Inc, Alphabet Inc’s Google and Meta Platforms Inc. That group of so-called hyperscalers represents a potentially risky concentration of revenue for Nvidia. Though demand for the company’s chips remains insatiable, those customers could ultimately use more of their own technology. They’re all either working on their own chips, or have already begun adopting them in some way. Cisco’s largest sales team will sell Nvidia-based servers combined with its Ethernet networking gear. Nvidia offers an alternative called InfiniBand in its own products. The closer tie-up with Cisco gives Nvidia better access to customers who prefer to stick with the more widely used standard for transferring data between computers. Read also: Musk’s track record, OpenAI success Are xAI’s biggest investor pitches Read also: Alphabet is seeking outside investment for its GFiber internet business break into phones, and have been evolving to bypass the latest security measures by Apple and Google for their phone operating systems iOS and Android. They include the Italian firms Cy4Gate and RCS Labs, Greek company Intellexa, the lesser known Italian company Negg Group and Spain’s Variston. Negg Group’s website says the company is focused on cybersecurity, but Google said its software was found to have been used to spy on people in Italy, Malaysia and Kazakhstan. Variston made software that infected user’s devices via the browsers Google Chrome, Mozilla Firefox or iOS apps, Google said, adding that another company, Protected AE — also known as Protect Electronic Systems — used a similar targeting technique. The five companies either did not respond to requests for comment, or were not reachable. The Google report comes a day after the United States announced a new visa restriction policy for those it said were misusing commercial spyware, allowing the placing of restrictions on individuals believed to have been involved in the abuse of commercial spyware, as well as for those who facilitate such actions and benefit from it. REUTERS BLOOMBERG
WEDNESDAY FEBRUARY 7, 2024 20 THEEDGE CEO MORNING BRIEF WORLD (Feb 6): Taiwan Semiconductor Manufacturing Co (TSMC) is expanding its output in Japan, with plans to build a second chip fabrication plant, a major victory for Prime Minister Fumio Kishida, as his government seeks to boost domestic chip production. The world’s largest contract chipmaker said that Toyoto Motor Corp will also be joining as a new investor of Japan Advanced Semiconductor Manufacturing Inc (JASM), TSMC’s majority-owned manufacturing subsidiary in Kumamoto. The TSMC board approved an injection of no more than US$5.26 billion (RM25.07 billion) in JASM, though it was not immediately clear how those funds would be used. The facility will be close to the first TSMC plant in Kumamoto in southwestern Japan. TSMC said in a statement on Tuesday that it would be adding six- to seven-nanometre (nm) process technology, advancing the technology produced on that campus. The second chip factory, also known as a fab, is scheduled to begin operation by the end of the 2027. Together with JASM’s first fab, the overall investment will exceed US$20 billion with “strong support from the Japanese government”, the Hsinchu, Taiwan-based company said. TSMC is already considering a third Japanese factory using the even more advanced 3nm tech, Bloomberg has reported. TSMC said the two factories in the Kumamoto site will have a total monthly production capacity of more than 100,000 12-inch wafers, and create over 3,400 high-tech jobs. Major countries around the world, including the US, Japan and Germany, have Taiwan’s TSMC to build second chip-making plant in Japan with partners (Feb 6): Investors looking for an end to the freefall in shares of Chinese e-commerce company Alibaba Group Holding Ltd may be in for a long wait, if options traders are correct. The stock’s 75% tumble from a 2020 record high has driven its valuation to an all-time low and put its market capitalisation on a par with upstart rival PDD Holdings Inc. The derivatives market indicates further pain, with the options skew showing increased bearishness ahead of Alibaba’s earnings report due Wednesday. A put contract betting the stock will drop more than 10% by the end of April was the most traded on Monday. Still, the shares climbed as much as 7% in Hong Kong on Tuesday amid some optimism for positive earnings, especially given the fact that the company moved forward its reporting date. Alibaba’s revenue for the three months through December is expected to have risen 5.6% from a year ago, the slowest growth in three quarters amid difficult economic conditions and steep discounting. Forward earnings estimates for the company have fallen about 4% over the past month. China’s online retail market has grown crowded, with stalwarts Alibaba and JD.com Inc facing new entrants including Douyin Mall, run by TikTok owner ByteDance Ltd. At the same time, persistent deflationary pressure and declining wages have driven a price war that is being won by discounters like Pinduoduo, the local equivalent of PDD’s Temu. Alibaba’s 80% loss may extend on competition worries BY JANE LANHEE LEE Bloomberg “The focus is whether Alibaba can survive the macro weakness,” said Tam Tsz-Wang, analyst at DBS Vickers Hong Kong Ltd. “The market is expecting it to lose market share as they face fierce competition from rivals like Douyin and PDD. Another focus would be whether they are able to import new drivers to maintain their overall growth.” The stock is trading at 8 times forward earnings, near its lowest valuation ever and making it one of the cheapest technology stocks in China. In comparison, Hong Kong-listed utility CLP Holdings Ltd is trading at around 13 times expected earnings, as is the Hang Seng Tech Index. Alibaba spent US$9.5 billion (RM45.24 billion) on share buybacks last year, a record high, according to data compiled by Bloomberg, and says it still has about US$12 billion remaining through 2025 to spend on repurchases. The firm may spend half of its free cash flow on buybacks and could also announce special dividends after business divestments, according to Goldman Sachs Group Inc analyst Ronald Keung. He maintains a buy rating on Alibaba, citing its attractive valuation. been racing to build a comprehensive semiconductor supply chain at home following a chip shortage during the pandemic to avoid future disruptions to economy. Japan’s Economy Ministry is preparing some ¥2 trillion (US$13 billion or RM64.15 billion) in subsidies to drive chip investments in a bid to regain its status as a major semiconductor power, with TSMC already having received some grants. The Taiwanese chipmaker’s first plant in Kumamoto is partly funded by Sony Group Corp and Denso Corp. It uses technology as advanced as 12nm with mass production set to start in late 2024. With the latest investment, TSMC, Sony, Denso and Toyota will each hold about 86.5%, 6%, 5.5%, and 2% of JASM respectively. TSMC is also building two advanced facilities in Arizona, but the US project has been delayed on labour and cost challenges. Meanwhile, TSMC and Taiwanese government officials have repeatedly said the Japan site is progressing smoothly. TSMC’s board on Tuesday also approved a capital injection of no more than US$5 billion in its wholly-owned subsidiary in Arizona. The Taiwanese firm has also announced plans for a plant in Germany. Read also: China aims to boost chip production despite US restrictions — FT Read the full story REUTERS REUTERS BY JEANNY YU Bloomberg
wednesday february 7, 2024 21 The E dge C E O m o rning brief world (Feb 6): UBS Group AG will buy back up to US$1 billion (RM4.77 billion) in shares this year, as the bank seeks to keep investors focused on the upside of its complex integration of Credit Suisse. The Zurich-based bank said the repurchase programme will commence following the legal merger of the two banks, which is scheduled for the second quarter. Expenses related to the integration in the final three months of 2023 helped push the bank to its second-straight quarterly loss. Shares fell after the bank posted results on Tuesday, trading down as much as 3.4%. Pre-tax profit at the key wealth management unit came in well below estimates, and the investment bank posted its third loss in a row. Chief executive officer Sergio Ermotti has warned that 2024 will be more difficult, as the costs from the takeover of its former rival weigh on results before UBS can realise the benefits. The bank is vying for primacy in global wealth management, seeking to boost its valuation to a par with US rivals including Morgan Stanley. “One thing we need to do is be willing to sacrifice a little bit of top-line growth in order to improve the returns of our financial resources,” Ermotti said in an interview on Bloomberg TV on Tuesday. “2024 will be a pivotal year,” Ermotti said. On Tuesday, the bank confirmed its profitability target through 2026, and increased the amount of planned cost savings to US$13 billion from about US$10 billion previously. Chief financial officer Todd Tuckner said that while total integration expenses will remain elevated this year, by the end of 2024 around twothirds of the anticipated costs will have been booked. Read also: UBS to sell billions more AT1 bonds in coming years UBS restarts buyback as Ermotti slogs through ‘pivotal’ year LONDON (Feb 6): BP posted forecast-beating earnings of US$3 billion in the fourth quarter on Tuesday, while boosting share repurchases and vowing to make pragmatic investments, as its recently appointed chief executive officer (CEO) sought to allay investor concern over its energy transition strategy. The company’s shares were more than 5% higher by 0907 GMT, following the unexpected acceleration of the buyback programme. The quarterly results, lifted by strong gas trading, took the energy giant’s 2023 profit to US$13.8 billion, although that was half that of a year earlier, as oil and gas prices cooled and refining profit margins weakened. The earnings come as a relief to CEO Murray Auchincloss, after the company substantially missed forecasts in the previous two quarters. Auchincloss became permanent CEO in January, after being named interim CEO on Sept 12, when Bernard Looney abruptly stepped down for failing to fully disclose details of past personal relationships with colleagues. Auchincloss told Reuters that BP remains committed to reducing oil and gas output and sharply growing its renewables and low-carbon businesses by the end of the decade. “As we drive towards 2025, we are going to focus on simplifying the business,” he said. “We will pragmatically adapt to what’s happening with demand in society,” he said, adding that BP will go for the “highest return and highest value projects”. BP’s shares have underperformed rivals in recent months, amid investor concerns over its strategy and the leadership upheaval. The company said it was committed to repurchasing US$3.5 billion of shares in the first half of 2024, and expects to purchase BP beats forecast with US$3 bil quarterly profit, boosts buybacks US$14 billion over 2024-2025. “BP delivers what investors were asking for: higher distributions and more visibility,” Jefferies analyst Giacomo Romeo said in a note. Strong trading Rivals Exxon Mobil, Chevron and Shell last week beat profit expectations on a mix of strong trading results and higher oil and gas production, although refining margins weighed on the sector amid sluggish global economic activity. BP’s fourth-quarter underlying replacement cost profit, the company’s definition of net income, reached US$2.99 billion, exceeding forecasts of US$2.77 billion in a company-provided survey of analysts. That compared with a US$3.3 billion profit in the third quarter and US$4.8 billion a year earlier. BP said the results reflected strong gas trading and higher oil and gas prices, which were nevertheless offset by “significantly lower” refining margins, weak oil trading and exploration impairments. It maintained its dividend at 7.27 cents per share and increased the rate of its share buybacks to US$1.75 billion over the next three months, from US$1.5 billion in the previous three. Capital expenditure in 2023 was unchanged from a year earlier at US$16.3 billion, and is expected to dip to US$16 billion this year and next. BP generated more than US$32 billion of cash last year, compared with US$41 billion in 2022. It reduced net debt to US$20.9 billion by year-end, the lowest in a decade, from US$21.4 billion 12 months earlier. by Ron Bousso Reuters by Myriam Balezou Bloomberg reuters As we drive towards 2025, we are going to focus on simplifying the business. We will pragmatically adapt to what’s happening with demand in society.” bloomberg
wednesday february 7, 2024 22 The E dge C E O m o rning brief world US, China officials to meet in Beijing, furthering economy talks Convicted Thai ex-PM Thaksin facing possible royal insults charge FAA chief vows to hold Boeing accountable for quality lapses by Panu Wongcha-um & Panarat Thepgumpanat R e u t e r s by Siddharth Philip & Ryan Beene B l o o m b e r g by Viktoria Dendrinou Bloomberg BANGKOK (Feb 6): Thailand’s attorney general is considering prosecuting convicted former Thai premier Thaksin Shinawatra over an alleged insult of the powerful monarchy, an official said on Tuesday, just weeks away from his possible release on parole. The complaint concerns a 2015 interview he gave while in South Korea and was filed by a junta that ran Thailand after the military overthrew a government led by Thaksin’s sister. Thaksin has repeatedly pledged loyalty to the monarchy. Insulting the crown is a serious offence and a major slur in Thailand, where the constitution states the king must be held in a position of “revered worship”. The lese-majeste law is among the world’s strictest, with each perceived offence punishable by up to 15 years in prison. The influential Thaksin, prime minister from 2001-2006, made a dramatic homecoming last August from 15 years in self-imposed exile to serve an eight-year jail sentence for abuse of power, later commuted to one year by the king. The billionaire is being detained at a hospital with an undisclosed health problem and has yet to spend a full night in prison. He is eligible for parole later this month. Prayut Petchkhun, spokesperson for the attorney general’s office, told reporters the seven-year delay in acting on the royal insults complaint was because Thaksin had been abroad. He gave no timeframe for when a decision would be taken, adding Thaksin, 74, had denied wrongdoing and provided authorities with “a letter requesting fairness”. He did not elaborate on the allegation against Thaksin. If Thaksin is freed he would be detained by police, Prayut said, adding he could be released temporarily while the attorney general considers whether to press charges. Thaksin’s lawyer did not immediately respond to a request for comment. Thailand current government is backed by the Shinawatra family, with Thaksin’s return coinciding with ally and real estate mogul Srettha Thavisin becoming prime minister that same day. (Feb 6): US and Chinese officials will hold talks on economic issues in Beijing this week, in the latest round of re-engagement between between the world’s two largest economies. A five-person delegation from the US Treasury will meet Chinese counterparts, according to a Treasury official who asked not to be named. The discussions mark another round of the “economic working group” established last year, and will cover topics including the macroeconomic outlook, the two countries’ investment-screening regimes and coordination on debt and climate change, the official said. The talks are part of a broader effort by the Biden administration to maintain channels of communication with its key geopolitical rival, especially on shared challenges, while also pursuing policies to protect its national security. US-China relations improved in the second half of 2023 after a rocky start to the year, with Presidents Joe Biden and Xi Jinping meeting in November in an effort to stabilise ties. However, the question of Taiwan, Chinese and US actions in the South China Sea, and issues including trade and export controls remain as major areas of contention. Former Thai prime minister Thaksin Shinawatra at Don Mueang airport in Bangkok, Thailand, on Aug 22, 2023. Reuters (Feb 6): The Federal Aviation Administration’s (FAA) top official will pledge to hold Boeing Co accountable for any quality lapses. as the agency examines the US plane-maker’s manufacturing processes following a near-disaster on an Alaska Airlines flight last month. “Let me stress: we will follow the data and take appropriate and necessary action,” FAA administrator Mike Whitaker will tell lawmakers, according to prepared remarks released before his appearance on Tuesday on Capitol Hill. He added that the agency will have “more boots on the ground” to monitor Boeing’s factories, saying the FAA “will consider the full extent of our enforcement authority to ensure Boeing is held accountable for any non-compliance”. Whitaker, who took the helm in October, is set to testify before the House Transportation and Infrastructure Committee. The mid-air structural blowout on the Boeing 737 Max 9 has dominated his tenure to date, leading the agency to step up its scrutiny of Boeing and its suppliers, and to bar the plane-maker from increasing deliveries until quality improves. The agency expects to have enough data from an investigation launched after the accident to make initial recommendations as soon as late February, the FAA said on Monday. Boeing has had a series of manufacturing glitches with the Max through 2023, which culminated in the near-catastrophic panel blowout on the Max 9 on Jan 5. The National Transportation Safety Board is probing the cause of the failure, and its preliminary report is imminent. This past weekend, Boeing found more mistakes with holes drilled into the fuselage of its 737 Max jets, threatening to slow deliveries further. Shares in the plane-maker have declined 21% this year through Monday, the biggest drop among members of the Dow Jones Industrial Average. They slipped less than 1% in pre-market US trading.
wednesday february 7, 2024 23 The E dge C E O m o rning brief world TOKYO (Feb 6): Japan’s industry ministry said on Tuesday that it would extend subsidies worth as much as 242.9 billion yen (US$1.64 billion) for Bain Capital-backed Kioxia and Western Digital, to expand memory chip production in Mie and Iwate prefectures. The funding provides underpinning for the two companies, which have been hammered by a slump in the market for NAND flash chips and whose merger talks stalled late last year, following opposition from Kioxia investor SK Hynix. Japan’s powerful industry ministry aims to reclaim the country’s lost position as a major chip centre by extending subsidies to domestic and foreign chipmakers, and secure chip supply amid trade tensions between China and the United States. “The memory market is expected to grow significantly in the future, including for generative AI,” Japan’s industry minister Ken Saito told reporters. “The joint investment by Kioxia and Western Digital brings together Japan and the US to fulfil our responsibility to supply the memory the world needs,” he said. SK Hynix has emerged as a major beneficiary from investment in generative AI with US chipmaker Nvidia, using the South Korean firm’s high bandwidth memory (HBM) chips. Kioxia was spun off from Toshiba, which invented NAND in the 1980s, when Japan was a dominant player in global chipmaking. The subsidies include 92.9 billion yen originally approved in 2022, along with an additional 150 billion yen. Production will include cutting-edge 3D flash memory, with investment totalling around 728.8 billion yen. “The more data is used, the more memory consumption will increase, so in that sense, global demand will surely grow in accordance with NAND’s characteristics,” an industry ministry official said. Western Digital, whose shares have gained 12% year-to-date, has said it plans to spin off its flash memory business. Japan extends subsidies to downturn-hit Kioxia, Western Digital TOKYO (Feb 6): Toyota Motor raised its full-year operating profit forecast by nearly 9% on Tuesday, after higher sales volumes and a weaker yen boosted its third-quarter results. The world’s top-selling automaker raised its profit forecast for the current year to ¥4.9 trillion yen (RM156.7 billion), versus ¥4.5 trillion expected previously. The higher target contrasts with downbeat outlook provided by many of its rivals who have warned of slowing sales growth and announced production cuts this year due to high interest rates and slowing demand for electric vehicles. Toyota’s operating profit for the three months to Dec 31 totalled ¥1.68 trillion, up 75.7% from ¥956.7 billion a year earlier and beating the average ¥1.3 trillion profit estimate in a poll of nine analysts by LSEG. Toyota, a laggard in battery-powered EVs, is seen outperforming competitors this year, helped by robust demand for hybrid vehicles, which it pioneered more than a quarter century ago with the Prius model. Hybrids accounted for around one third of the total sales of more than 10 million vehicles of its Toyota and luxury Lexus brands last year. It retained its crown as the world’s top-selling automaker for the fourth consecutive year after posting record annual sales of 11.2 million vehicles for 2023. But the firm is grappling with a series of scandals at its group companies over product certification test procedures that threaten to hurt its reputation for quality and safety. Toyota’s chairman apologised last week for the inconvenience and concern caused by misconduct at two subsidiaries and an affiliate. (Feb 6): Japan is facing a stark shortage of skilled human resources in the technology sector, even as it seeks to digitalise its economy and kickstart its lagging semiconductor industry. Three quarters of technology hiring managers in Japan found recruitment to be “very” or “quite” competitive last year, with a shortage of skilled candidates being the top reason, according to new research by recruiting firm Morgan McKinley. The trend is prevalent across industries as well, the report found, with 90% of the organisations surveyed also facing competitive hiring. The report notes that Japanese employers have had to speed up their hiring process so as to not lose out against their competitors. This stands in stark contrast to the US, where 32,000 tech workers have already been laid off this year, and multiple job offers are still rare. Japan’s shortage of software engineers in particular has caused the country to lag behind in digital transformation. The report recommends a move toward recruiting foreign workers, as 31% of tech hiring managers cited a lack of skilled candidates as their biggest challenge for this year. Japan’s foreign worker population has recently been on the rise, topping two million for the first time as of October. “A lot of organisations in Japan could for sure look outside and further afield, and I think they’d probably find more skilled talent or perhaps individuals that have had more experience of cutting-edge technology,” said Lionel Kaidatzis, managing director of Morgan McKinley Japan. “I think it’s improved, but I do feel that it’s still got some way to go.” Read the full story Read also: Nintendo lifts profit and Switch outlook after beating estimates Toyota hikes annual profit forecast after 3Q beats expectations Tech firms in Japan are scouring for talent amid labour shortage by Daniel Leussink Reuters by Mia Glass Bloomberg by Sam Nussey & Miho Uranaka Reuters
wednesday february 7, 2024 24 The E dge C E O m o rning brief world SINGAPORE (Feb 6): Indonesia’s state-owned communication giant Telkom Indonesia is considering selling a stake in its data centre business and is expected to finish the selling process in the second half of this year. The group is in the process of selecting its financial adviser and considering how much stake to sell, Telkom senior vice president of corporate communication and investor relations Ahmad Reza said. According to two sources with knowledge of the plan, a sale of a minority stake is expected to kick off in March and value Telkom’s data centre business at more than US$1 billion. Ahmad did not comment on the size of the stake, or when the sale would kick off or the valuation, but said monetisation of the data centre business was still being discussed and Telkom does not have any specific target. Roping in a global strategic partner or strong financial investors is expected to help Telkom expand its data centre business further, both locally and globally. Telkom, Indonesia’s largest telecommunication group, has 28 data centres, which includes 23 at home and five overseas, according to its 2022 annual report. It competes with several companies that have also established data centres such as DCI Indonesia, Princeton DG and NTT Communication, according to the annual report. “As the internet penetration worldwide is growing rapidly, the data centre business is becoming a hot asset to invest in, including in Indonesia,” Reza said. Global investors’ demand for infrastructure assets such as data centres across Southeast Asia have grown in recent years, amid the region’s growth prospects and the sector’s stable and long-term returns. In September, global investment firm KKR & Co acquired a 20% stake in Singapore Telecommunications’ regional data centre business for S$1.1 billion (US$818 million). Telkom Indonesia looking to sell stake in data centre business, to conclude deal by 2H SYDNEY (Feb 6): Australia’s central bank held interest rates steady on Tuesday as expected, but cautioned that a further increase could not be ruled out given inflation was still too high and it needed to see more evidence that price pressures were cooling. The hawkish tone of the central bank’s statement boosted the Australian dollar and saw futures push out the likely timing of a first easing to later in the year. Wrapping up its February policy meeting, the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35%, having last lifted them by a quarter point in November. Markets had wagered heavily on a steady outcome given inflation had eased by more than expected in the fourth quarter, but the RBA statement suggested it was still not confident that inflation was on a sustainable path towards its 2%-3% target. “While recent data indicate that inflation is easing, it remains high.... The Board needs to be confident that inflation is moving sustainably towards the target range,” said the RBA Board in a statement. Dwyfor Evans, head of APAC macro strategy at State Street Global Markets, said the comments were “slightly more hawkish” than anticipated particularly given “the weakness in recent inflation data”. “We continue to focus on weaker consumption, elevated debt servicing costs and signs of easing in the job market as pointers towards a more accommodative stance going forward.” The RBA statement helped the Aussie nudge up 0.2% to US$0.6498, having hit an 11-week low of US$0.6469 overnight. The futures now see a 36% probability of a move down in rates in June, with August at 76%. A quarter point cut was not fully priced in until September. They also imply only a modest 40 basis points for the year, down from 46 basis points before the RBA announcement. The RBA has jacked up interest rates by 425 basis points since May 2022 to tame stubbornly high inflation. Although inflation fell to a two-year low of 4.1% in the fourth quarter and has moved some way off the peak of 7.8% from late 2022, it is still well above the central bank’s 2%- 3% target band. However, the economy has slowed to a crawl, the red-hot labour market has started to loosen and consumer spending remained soft amid the costs of living pressures and high mortgage rates. Taking off the pressure to hike is the drastic change in overseas monetary policy outlooks since the RBA last met in early December. Yet, over in the US, economic resilience and hawkish Federal Reserve commentary have led markets to push back the start of US rate cuts from March to later in the year. “The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, and a further increase in interest rates cannot be ruled out,” the RBA said in its statement. Read also: Australia’s central bank shakes off ‘Taylor Swift inflation’ fears Philippine central bank reinforces hawkish stance despite slower inflation Australia’s central bank holds rates, warns of possible further hike by Stella Qiu & Wayne Cole Reuters by Yantoultra Ngui Reuters reuters
wednesday february 7, 2024 25 The E dge C E O m o rning brief world (Feb 6): Singapore Changi Airport’s passenger volumes are expected to reach pre-pandemic levels in 2024, the country’s transport ministry said in a written response to parliamentary questions. Monthly passenger traffic recovered to around 90% of pre-Covid levels in December. For the full year of 2023, the airport handled 58.9 million passenger movements, or 86% of traffic recorded in 2019, the ministry said. To meet longer term demand for air travel, the financial hub plans to start construction of a fifth airport terminal next year and expects it to be operational in mid-2030s, it added. Singapore sees Changi airport traffic hitting pre-Covid levels this year VinFast recalls nearly 6,000 units in Vietnam to replace switch SINGAPORE (Feb 6): Singaporean banks are set to post higher profits for the fourth quarter because of higher interest rates, though growth momentum is poised to slow as big central banks pivot toward rate cuts and volatile markets weigh on their mainstay wealth business. The banks are also expected to see sharper scrutiny of their wealth management business, as a result of a US$2.2 billion (RM10.48 billion) money laundering scandal that hit the Southeast Asian citystate last year, affecting the flow of assets, analysts say. DBS Group, Singapore’s No 1 lender by assets, will kick off the earnings season on Wednesday, followed by Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) this month. “We think earnings momentum for the Singapore banks has peaked,” Thilan Wickramasinghe, Maybank Investment Banking Group’s head of research for Singapore and regional head of financials. “The tailwinds enjoyed by rising interest rates in 2023 are unlikely to sustain this year,” he added. Federal Reserve Chair Jerome Powell said on Wednesday that interest rates had peaked and would move lower in coming months. In Southeast Asia, Indonesia’s central bank said this week it had room to lower interest rates this year to lift growth. DBS is expected to post a 2.9% rise in earnings per share (EPS) in the fourth quarter versus a year earlier, and the EPS is forecast to drop 2.09% in the March quarter from a year earlier, LSEG estimates showed. OCBC and UOB are expected to show the same trend, the data showed. Besides higher global interest rates, Singapore banks have also benefited from strong inflows of wealth over the last few years. The city-state’s biggest money laundering case, however, has resulted in banks taking longer than usual to perform due diligence on clients and closing accounts in some cases, which, some analysts say, will weigh on their wealth business. “The banks would have more stringent AML and CDD procedures to follow, which could increase expenses as more employees and time is required,” said Glenn Thum, senior research analyst at Phillip Securities Research. AML and CDD refer to anti-money laundering and customer due diligence. “The banks would also need to be more careful in accepting customers and loans, which could hamper their desired growth,” Thum added. Faced with the challenges, the Singaporean banks are likely to bet on a surge in fee income and a recovery in loan growth as interest rates start to dip to cushion the impact on earnings, Thum said. HANOI (Feb 6): Vietnam’s electric vehicle (EV) maker VinFast is recalling nearly 6,000 of its VF 5 cars sold in the domestic market to replace the combination switch, the company said on Tuesday. The vehicles being recalled were manufactured from March to December last year, it said in a statement, adding that only one vehicle sold on the market was recorded with the switch error and no incidents have occurred. VinFast discovered during tests that the front lights on some VF 5 Plus vehicles, which are available only in Vietnam, are Singapore’s banks profits set to peak as rates boost fades by Yantoultra Ngui Reuters by Nurin Sofia Bloomberg by Phuong Nguyen Reuters turned off if the driver pulls the combination switch strongly to turn on the ignition, the EV maker said. The problem was with a control circuit board design error from the component supplier, it added. VinFast, which made its Nasdaq debut last August, delivered nearly 35,000 cars in 2023, below its target of at least 40,000 units. The deliveries in the last three months of 2023, however, increased 35% against the third quarter to 13,513 units, the company had said. Bloomberg Bloomberg
WEDNESDAY FEBRUARY 7, 2024 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) WENTEL ENGINEERING HOLDINGS 250.78 0.020 0.280 NULL 322.0 WIDAD GROUP BHD 144.70 -0.010 0.115 -76.29 356.1 RENEUCO BHD 66.90 -0.015 0.080 -63.64 89.8 VELESTO ENERGY BHD 58.40 0.005 0.255 10.87 2,095.0 MALAYSIAN RESOURCES CORP BHD 54.70 0.010 0.605 35.96 2,702.8 TWL HOLDINGS BHD 53.30 0.000 0.040 33.33 208.6 TOP GLOVE CORP BHD 41.10 -0.025 0.910 1.11 7,287.5 YTL POWER INTERNATIONAL BHD 39.60 0.130 3.870 52.36 31,355.3 REVENUE GROUP BHD 37.90 0.010 0.205 0.00 113.8 YTL CORP BHD 35.70 0.010 2.190 15.87 24,012.0 REACH ENERGY BHD 35.00 0.000 0.030 -25.00 63.9 EKOVEST BHD 27.00 0.025 0.540 10.20 1,601.3 MINETECH RESOURCES BHD 24.50 0.005 0.140 -3.45 249.8 SARAWAK CONSOLIDATED INDUSTRIES 24.30 -0.005 0.330 -64.71 211.3 PUBLIC BANK BHD 24.00 -0.020 4.390 2.33 85,212.9 DIALOG GROUP BHD 23.00 -0.040 1.730 -16.43 9,761.7 ISKANDAR WATERFRONT CITY BHD 21.10 0.030 0.775 6.16 713.9 RGB INTERNATIONAL BHD 20.10 0.010 0.320 18.52 493.1 UEM SUNRISE BHD 19.10 0.030 1.010 23.93 5,109.1 AVILLION BHD 18.60 0.000 0.055 10.00 62.3 Data as compiled on Feb 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) AE MULTI HOLDINGS BHD 0.015 50.00 67.3 0.00 32.5 TECHNA-X BHD 0.015 50.00 113.9 0.00 33.2 METRONIC GLOBAL BHD 0.020 33.33 500.0 33.33 30.6 TALAM TRANSFORM BHD 0.020 33.33 1,107.6 33.33 85.9 SANICHI TECHNOLOGY BHD 0.025 25.00 515.0 0.00 35.1 G3 GLOBAL BHD 0.030 20.00 241.1 20.00 113.2 SENTORIA GROUP BHD 0.060 20.00 7,078.1 -33.33 36.8 ADVANCE SYNERGY BHD 0.130 18.18 12,227.0 -7.14 328.8 AGESON BHD 0.070 16.67 2,454.8 -6.67 21.8 TA WIN HOLDINGS BHD 0.035 16.67 848.4 -12.50 120.2 SEREMBAN ENGINEERING BHD 0.735 11.36 0.5 6.52 58.6 VELOCITY CAPITAL PARTNER BHD 0.050 11.11 1,561.1 11.11 69.1 INDUSTRONICS BHD 0.055 10.00 334.0 10.00 38.9 JOHAN HOLDINGS BHD 0.055 10.00 2,222.1 -15.38 64.2 VINVEST CAPITAL HOLDINGS BHD 0.055 10.00 1,104.7 -8.33 53.3 ARTRONIQ BHD 0.295 9.26 4,908.4 -65.90 120.3 JADI IMAGING HOLDINGS BHD 0.060 9.09 121.3 -14.29 84.0 XOX TECHNOLOGY BHD 0.065 8.33 82.1 -7.14 58.1 ENGTEX GROUP BHD 0.990 8.20 11,228.1 31.13 437.0 UZMA BHD 1.190 8.18 3,107.6 58.67 460.8 Data as compiled on Feb 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.005 -50.00 654.2 -50.00 18.4 COMPUGATES HOLDINGS BHD 0.010 -33.33 110.0 -33.33 55.0 SC ESTATE BUILDER BHD 0.015 -25.00 4,362.4 -3.57 26.9 MQ TECHNOLOGY BHD 0.020 -20.00 6,208.8 -20.00 30.4 NEXGRAM HOLDINGS BHD 0.025 -16.67 546.3 -44.44 17.8 SAUDEE GROUP BHD 0.025 -16.67 1,225.6 0.00 39.0 RENEUCO BHD 0.080 -15.79 66,905.7 -63.64 89.8 ECOBUILT HOLDINGS BHD 0.075 -11.76 23.9 -16.67 31.6 FITTERS DIVERSIFIED BHD 0.040 -11.11 1,317.7 -20.00 93.7 GREEN PACKET BHD 0.040 -11.11 532.1 0.00 79.8 IDEAL CAPITAL BHD 3.110 -10.89 1.0 3.67 1,555.0 TRI-MODE SYSTEM M BHD 0.335 -10.67 6.6 6.35 55.6 ASIA MEDIA GROUP BHD 0.085 -10.53 1.0 -10.53 20.4 ARB BHD 0.045 -10.00 332.2 -30.61 56.2 SOUTHERN STEEL BHD 0.600 -9.77 6.0 -5.51 357.8 ZELAN BHD 0.050 -9.09 1,475.7 -37.50 42.2 PARLO BHD 0.105 -8.70 159.9 -8.70 63.1 OVERSEA ENTERPRISE BHD 0.055 -8.33 506.0 -8.33 124.7 TRIVE PROPERTY GROUP BHD 0.055 -8.33 175.5 -31.25 69.5 VIZIONE HOLDINGS BHD 0.055 -8.33 267.3 -8.33 112.5 Data as compiled on Feb 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) IDEAL CAPITAL BHD 3.110 -0.380 1.0 3.67 1,555.0 KESM INDUSTRIES BHD 6.690 -0.270 4.8 -5.37 287.8 MALAYSIAN PACIFIC INDUSTRIES 26.580 -0.200 67.6 -5.74 5,286.7 AMWAY MALAYSIA HOLDINGS BHD 6.650 -0.120 53.4 13.10 1,093.2 KUALA LUMPUR KEPONG BHD 22.100 -0.120 710.8 1.28 23,833.4 PENTAMASTER CORP BHD 4.110 -0.110 1,492.2 -10.65 2,923.5 ALLIANZ MALAYSIA BHD 19.200 -0.100 13.7 4.12 3,417.0 SAM ENGINEERING & EQUIPMENT 3.620 -0.100 1,153.4 -9.31 1,961.2 HARTALEGA HOLDINGS BHD 2.660 -0.090 13,449.1 -1.48 9,079.3 GENETEC TECHNOLOGY BHD 1.900 -0.070 2,249.7 -19.49 1,472.7 GREATECH TECHNOLOGY BHD 4.450 -0.070 526.7 -7.29 5,581.2 PGF CAPITAL BHD 1.780 -0.070 540.8 29.93 291.2 SOUTHERN STEEL BHD 0.600 -0.065 6.0 -5.51 357.8 CAN-ONE BHD 2.460 -0.060 15.0 1.23 472.7 DELEUM BHD 1.040 -0.060 1,897.9 8.90 417.6 PLENITUDE BHD 1.380 -0.060 22.0 3.76 526.5 NEW HOONG FATT HOLDINGS BHD 3.570 -0.050 54.2 8.51 295.1 PINEAPPLE RESOURCES BHD 0.800 -0.050 852.5 0.63 38.8 TEO GUAN LEE CORP BHD 1.130 -0.050 9.6 -5.04 95.9 IQ GROUP HOLDINGS BHD 0.755 -0.045 16.1 2.72 66.4 Data as compiled on Feb 6, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 121.300 1.300 78.6 3.15 28,444.9 FRASER & NEAVE HOLDINGS BHD 28.860 0.420 111.5 3.10 10,585.2 PETRONAS DAGANGAN BHD 21.800 0.300 254.0 -0.18 21,657.3 APOLLO FOOD HOLDINGS BHD 5.590 0.290 47.0 -2.95 447.2 HEINEKEN MALAYSIA BHD 24.880 0.200 131.0 3.07 7,516.2 AJINOMOTO MALAYSIA BHD 16.400 0.140 6.5 3.14 997.1 BATU KAWAN BHD 20.360 0.140 2.9 -1.17 8,009.2 UNITED PLANTATIONS BHD 19.720 0.140 124.0 10.79 8,179.6 LYSAGHT GALVANIZED STEEL BHD 2.480 0.130 2.1 11.71 103.1 PERTAMA DIGITAL BHD 2.880 0.130 8,512.2 10.34 1,262.0 PMB TECHNOLOGY BHD 2.630 0.130 314.0 -5.40 4,262.9 YTL POWER INTERNATIONAL BHD 3.870 0.130 39,624.9 52.36 31,355.3 CHIN HIN GROUP BHD 3.780 0.110 195.9 7.08 6,688.4 CARLSBERG BREWERY MALAYSIA BHD19.380 0.100 109.9 0.52 5,925.4 PPB GROUP BHD 14.700 0.100 255.3 1.52 20,912.2 IGB BHD 2.370 0.090 7.1 7.73 3,193.4 INARI AMERTRON BHD 3.200 0.090 7,724.0 6.31 11,998.6 UZMA BHD 1.190 0.090 3,107.6 58.67 460.8 INSAS BHD 1.220 0.080 5,042.0 36.31 808.9 SEREMBAN ENGINEERING BHD 0.735 0.075 0.5 6.52 58.6 Data as compiled on Feb 6, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,380.12 -274.30 -0.71 S&P 500 * 4,942.81 -15.80 -0.32 NASDAQ 100 * 17,613.04 -29.69 -0.17 FTSE 100 * 7,612.86 23.82 0.31 AUSTRALIA 7,581.58 -44.27 -0.58 CHINA 2,789.49 87.30 3.23 HONG KONG 16,136.87 626.86 4.04 INDIA 72,186.09 454.67 0.63 INDONESIA 7,247.41 48.79 0.68 JAPAN 36,160.66 -193.50 -0.53 KOREA 2,576.20 -15.11 -0.58 PHILIPPINES 6,755.26 27.04 0.40 SINGAPORE 3,125.68 -8.61 -0.27 TAIWAN 18,096.07 36.14 0.20 THAILAND 1,396.96 13.03 0.94 VIETNAM 1,188.48 2.42 0.20 Data as compiled on Feb 6, 2024 Source: Bloomberg CPO RM 3,841.00 39.00 OIL US$ 78.06 0.07 RM/USD 4.7677 RM/SGD 3.5417 RM/AUD 3.0964 RM/GBP 5.9799 RM/EUR 5.1156 * Based on previous day's closing
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 WEDNESDAY FEB 7, 2024 SCAN ME No. 8453 PP 2644/12/2012 (031195) Hidden dangers of skincare products Vital to check for defects before accepting house Move ensures developer can be notified in writing of existing issues and rectifies matter before buyer takes possession, says House Buyers Association sec-gen BON APPETIT ... Sekolah Menengah Kebangsaan (SMK) Chan Wa 2 teacher Nur Ilyah Syahidah Ahmad Azam serves food to her students (clockwise second from left) Lee Ming En, Tammy Tan Ying Qian, Nurqistina Syahirah Halimi and S. Sashveenha after attending the Cross-Cultural Integration event at SMK Nilai Impian yesterday. – BERNAMAPIC Government rolling out more comprehensive and revolutionary pay mechanisms as current minimum wages or productivity-linked wage system cannot potentially resolve issues of people living below poverty line: Deputy minister Case for progressive wage Expert: Be wary of common ingredients in cosmetics that can pose potential harm to skin, such as triggering allergies, eczema and atopic dermatitis. MACC summons 20 witnesses over Spanco deal Chief commissioner Tan Sri Azam Baki does not rule out possibility of calling members of previous administration who were involved in awarding contract to company, including former PM and finance minister. Report on — page 3 Report on — page 4 Report on — page 5 Report on — page 2
WEDNESDAY | FEB 7, 2024 2 Progressive Wage System pilot project in June PETALING JAYA: Deputy Minister of Economy Datuk Hanifah Hajar Taib said yesterday that the government understands that minimum wages or the productivity-linked wage system and others like them cannot potentially resolve the issues of people living below the poverty line. Speaking at a conference titled “Malaysia Madani: Progressive Wage System (PWS) Conference” with the theme “Empowering Tomorrow’s Workforce Through Revolutionary Wage System”, at a hotel here, she said a more comprehensive and revolutionary strategy needed to be integrated into the wage system and only then can the desired results be seen. “This is why the government is rolling out the PWS as a pilot project in June. Industries and practitioners are being briefed on the strengths of its initiatives as its mechanisms must be shared with all stakeholders to understand the extent of employers’ and employees’ readiness. “The PWS’s introduction is made possible through a critical process of understanding the plight of employees and employers. Government initiatives would run futile if they are not supported by them,” she said. oIntroduction of new initiative made possible through critical process of understanding plight of employees and employers, says deputy minister █ BY JOSHUA PURUSHOTMAN [email protected] Perak Sultan opens Women, Children and Cardiology Complex IPOH: The Sultan of Perak Sultan Nazrin Shah officiated at the opening of the Women, Children and Cardiology Complex of the Raja Permaisuri Bainun Hospital yesterday. Sultan Nazrin was accompanied by the Raja Permaisuri of Perak Tuanku Zara Salim. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the new complex would make the hospital one of the three largest ones in Malaysia, after Kuala Lumpur Hospital and Penang Hospital. He said the hospital now boasts 1,394 beds, 22 operating theatres and 33 adult intensive care unit beds. He added that it is also equipped with 10 beds in the cardiac care unit, 12 beds in the paediatric intensive care unit and 24 beds in the neonatal care unit. “This complex was built at a cost of RM237 million on an area of 14,671 sq m under a 10th Malaysia Plan allocation. “This is a large allocation for a hospital to ensure that health services can be implemented optimally for all Malaysians in general, and the state of Perak in particular.” Dzulkefly said the complex offers health services from three main departments, namely Cardiology, Paediatrics and Obstetrics and Gynaecology, with 404 beds, six operating theatres and 304 parking spaces for the use of the public and staff. He said the complex also provides three support services, namely radiology, pharmacy and the sterile material supply unit. He added that Perak has 15 hospitals including five specialist hospitals, 88 health clinics, 73 dental clinics, 10 maternal and child health clinics, 222 rural clinics and 18 community clinics. “Along with the development of the medical world, the government has provided many facilities to provide the best health services of international standard.” Dzulkefly said the ministry is also working towards providing a fairer and more equitable health system of high quality, at a reasonable cost and sustainable in the long term to meet the needs of the people, as outlined in the Health White Paper. – Bernama Sultan Nazrin and Tuanku Zara Salim observing a treatment procedure after the opening of the complex in Ipoh yesterday. – BERNAMAPIC Early incentive payment for civil servants on Feb 23 PUTRAJAYA: An RM2,000 early incentive payment to all civil servants grade 56 and below, including contract appointees, and RM1,000 to those in the Jawatan Utama Sektor Awam will be disbursed on Feb 23. The matter was announced by Prime Minister Datuk Seri Anwar Ibrahim at the Finance Ministry’s monthly gathering here yesterday. “RM1,000 will be given to those in the Jawatan Utama Sektor Awam comprising the police, fire department, armed forces and all other uniformed bodies. “An incentive payment of RM1,000 will also be made to all government retirees, including pensionable and nonpensionable veterans.” Anwar, who is also finance minister, said the early incentive payment would be channelled while waiting for the Public Service Remuneration System review to be finalised. He said the report on the review is expected to be completed within two months, before being presented to the Cabinet for final approval. He added that he had started meetings with the Chief Secretary to the Government (Tan Sri Mohd Zuki Ali) and Public Service director-general (Datuk Seri Wan Ahmad Dahlan Abdul Aziz), and they had agreed to speed up the review. Previously, the media had reported that the Interim Report 1 on the Public Service Remuneration System review had been submitted to Anwar on Jan 19. When tabling the 2024 Budget on Oct 13 last year, Anwar had announced that the full implementation of the remuneration system would begin in 2025, Bernama reported. He said it is important for the government, especially the Finance Ministry, to pay full attention to good governance and economic management to avoid leakages and to speed up the development approval process. Move to draft laws against cybercrime KUALA LUMPUR: Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said and Communications Minister Fahmi Fadzil chaired a working committee meeting on the drafting of new laws related to cybercrime on Monday. Through the X platform (formerly Twitter), Azalina said the proposed initiative is to enact new legislation to deal with issues related to cybercrime, reflecting the Madani government’s concern for the safety of the people, which is being threatened by the cyberworld. “Online services nowadays are a necessity and have become one of the most important elements in everyday life. “This development has opened up many new opportunities, especially in the business sector, making people’s lives easier and more comfortable. “However, while we are enjoying its benefits, the cyberworld is now being exploited to the point of becoming a bed of cybercrime which is becoming more widespread and is at an alarming level.” – Bernama The conference was attended by over 200 participants across the manufacturing and nonmanufacturing sectors. PWS experts and observers were also invited to shed light on PWS’s nature and the impact of its initiatives. In November last year, Economy Minister Rafizi Ramli said the PWS, under which employers would gradually increase pay for their workers based on their skills, experience and performance, will start in June 2024 and involve 1,000 companies in a pilot project. It is being introduced to reform the wage structure and complement existing policies, namely the Minimum Wage Policy, Productivity-Linked Wage System and Collective Agreements. Rafizi said his ministry would undergo a dry-run with companies until September the same year, to sort out any teething or operational issues. “The ministry had allocated RM30 million for the initiative, which would only be for entry-level graduates, semi-skilled Malaysians, and companies that were disadvantaged based on the current labour markets. “Employers have welcomed the voluntary aspect of the programme as they were worried about other mandatory policies being imposed, such as the minimum wage, as it would eventually take away the competitive salaries offered by companies.” Rafizi also denied claims that the decision to adopt a voluntary option was made due to lobbying by certain groups. “Removing the mandatory part of the PWS is a strategic decision based on the fact that 97% of businesses in Malaysia are MSMEs or SMEs,” he said, adding that the burden is on the government to ensure its success, with the pilot project making an impact on the economy. Datuk Dr Syed Hussain Syed Husman, the president of Malaysian Employers Federation, which organised the conference, said one of the most important discussions at the national level is to realise efforts to exit the middleincome trap and enter the highincome economy, which is why it organised the conference. He said the PWS initiative is a step in the right direction as its implementation will help to move the country further up the economic ladder. “We are part of the established tripartite partnership between the government, private sector employers and trade unions to provide a balanced and competitive working environment that is attuned to global requirements. “Our efforts to establish a better business environment reflects the changing calls to re-examine the wage structure, gender inclusion, and safe and fair work ecosystem.” Syed Hussain said MSMEs comprise more than 97.4% or 1,173,601 of all registered businesses in the national economy. “MSMEs recorded a growth of 11.6% in 2022, which surpassed the national GDP growth of 8.7% in the same year, while microenterprises consist of 78.7% or 923,667 firms out of the total number of MSMEs in the country. “So the PWS is an initiative that will transform the wage system and positively affect millions of workers.”
WEDNESDAY | FEB 7, 2024 3 Call to curb use of inhalers, energy sticks NILAI: Education Minister Fadhlina Sidek has called on parents and schools to collaborate in preventing students from using nasal inhaler products or energy sticks. Emphasising the importance of input from parents and teachers, she stressed the need to address and curb the concerning trend. “I urge parents and schools to address this issue seriously. Students should not be using (energy sticks). They should be focusing on education and health, spending time on beneficial programmes and not consuming things that affect their health,” Fadhlina said. She was speaking after the 2024 Negeri Sembilan Cross-Cultural Unity Day and Early School assistance officiated by Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun yesterday. Three days ago, Health Minister Datuk Seri Dr Dzulkefly Ahmad announced that he received a complaint and pledged to take prompt action on a product being actively sold and promoted on social media. Public Health Malaysia has also raised concerns about the emergence of beginner products, which not only pose a risk of enticing users into vaping and drug use but are also gaining popularity among students. These products are being sold at remarkably low prices, ranging from RM2.50 to RM10. Fadhlina said the distribution of early school assistance nationwide has reached 80% and will be completed before Feb 10. She added that the amount distributed in Negeri Sembilan totalled RM26,458,050, involving 478 schools and benefiting 176,387 students. The Negeri Sembilan Cross-Cultural Unity Day celebration was recognised by the Malaysia Book of Records as the largest gathering of 177,000 students and 17,400 teachers dressed in traditional attire. – Bernama Barisan committee chairmen appointed KUALA LUMPUR: Johor Menteri Besar Datuk Onn Hafiz Ghazi and Terengganu Umno liaison committee chairman Datuk Rozi Mamat have been appointed Johor and Terengganu Barisan Nasional (BN) chairmen respectively. BN secretary-general Datuk Seri Dr Zambry Abd Kadir said in a statement the decision was reached unanimously during a BN supreme council meeting on Monday. He also said the supreme council agreed to form a special committee to coordinate programmes in conjunction with BN’s Golden Jubilee Anniversary, which will be celebrated in June this year. On another matter, Zambry said BN extended well wishes to His Majesty the King of Malaysia Sultan Ibrahim, who took the oath of office as the 17th Yang di-Pertuan Agong on Jan 31. “May His Majesty’s reign bring Malaysia towards greater prosperity and well-being. BN also expresses gratitude to Al-Sultan Abdullan Ri’ayatuddin Al-Mustafa Billah Shah, who has completed his term as the 16th Yang di-Pertuan Agong,” he added. – Bernama Activity centres for senior citizens to be expanded ALOR GAJAH: The initiative to expand the Senior Citizens Activity Centres at the community level by the Women, Family and Community Development Ministry is expected to be able to address overcrowding issues at Rumah Seri Kenangan nationwide. Its minister Datuk Seri Nancy Shukri said it is also aimed at ensuring the elderly remain productive and lead safer, more comfortable daily lives. “We are aware that the capacity of the 10 existing Rumah Seri Kenangan is no longer able to accommodate the number of senior citizens, especially when the country is becoming an ageing nation. “Therefore, we hope the establishment of the centres would provide the much-needed assistance for this group,” she said after launching the Community-Based Organisation Directory KPWKM@Alor Gajah at Kompleks Penyayang Alor Gajah yesterday. – Bernama Felda mulls circular economy plan KUALA LUMPUR: The Federal Land Development Authority (Felda) is looking to develop more as a circular economy, that has the potential to be the basis of a new approach in strengthening the agency. The concept of a circular economy is the concept of use, return and recreate to maximise use and yield. Its chairman Datuk Seri Ahmad Shabery Cheek said Felda will discuss the matter further with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. He said Felda has established cooperation regarding the black soldier fly (BSF), which contains high levels of protein, as an alternative livestock feed, thereby reducing dependence on corn and soybeans. On Monday, Felda and Abeco Nature Science Sdn Bhd signed a research memorandum of understanding to increase the production of antimicrobial peptides (AMP) and proteins in BSF larvae, which has the potential to become a feed solution with antimicrobial characteristics and high nutritional levels to contribute to the sustainable livestock and aquaculture sector. “If BSF can be bred, it can be the basis for the modification of new bran for chicken feed and so on. “In the past, oil palm waste was of very low or no value and we had to hire people to dispose of it. But it can be used as food for the black soldier fly, which can be an important basis in developing livestock feed,” he told a press conference at the Felda 2024 Symposium yesterday. Ahmad Shabery said Malaysia needs at least 200,000ha for maize cultivation to meet demand. “That is bigger than the area of the Muda Agricultural Development Authority in Kedah and Perlis. There is no way we have such a large area to produce corn for livestock feed. “Therefore, through the cyclical economic system, we have new resources to produce fodder that we should be able to produce. This is one of the things we can present in the new system or a new approach in managing the economy.” He also said Felda sees a potential to develop the biomass field more intensely. “Biomass can be converted into fertiliser and energy sources, and this should be evaluated as well. These are new incomes that must be thought about together.” – Bernama Vital to check for defects before accepting property PETALING JAYA: After getting the keys to their properties, it is common for homebuyers to face challenges or disputes with housing developers due to undisclosed defects. Now, National House Buyers Association (HBA) honorary secretary-general Datuk Chang Kim Loong is advising homebuyers to conduct a comprehensive house defect inspection before moving into their new house or purchasing a pre-owned one. “Defect inspection is a meticulous examination and is a crucial step in understanding the full extent of faults that may exist in the property, and it contributes to making an informed decision on whether to buy a pre-owned property. “It also ensures the developer can be notified in writing of existing defects to a new house and have them corrected before a family moves in.” Chang said identifying potential issues also allows buyers to assess if they are willing to accept existing defects and make provisions for repairs in case of a dispute with the developer or pre-owned house seller. He also said neglecting to inspect a property for defects before purchasing, particularly in non-Housing Development Act transactions in which the principle of “What you see is what you get” applies, can have significant legal and contractual implications. “This oversight could lead to the forfeiture of the buyer’s entitlement to defect rectification and carries potential repercussions for the property’s condition and critically, the health and safety of the occupants. “Defect inspections have been proven instrumental in safeguarding home buyers’ interests, with instances when diligent buyers Examining a unit for defects contributes to making an informed decision on whether to buy the property. – MASRY CHE ANI /THESUNFILEPIC oInspection by expert could ensure safety of occupants and avert legal, financial problems █ BY MUHAMMAD AMMAR JALAL [email protected] uncovered defects such as clogged pipes that were concealed within a boxed-up duct. “This discovery not only prevents potential future damage to the property but also underscores the importance of thorough inspections to ensure the long-term well-being of the property investment.” Chang recommended following specific guidelines or checklists during defect inspections and said it is advisable in contemporary practices to enlist the services of a qualified building inspector cum architect for a professional inspection. “These experts can assist in carrying out a thorough evaluation and serve as valuable expert witnesses in the event of a legal dispute.” Dr. Defect Malaysia managing director and house defect inspector Vennu Anand Guna Sigeran said during a house inspection, the primary focus is on assessing various aspects of the property to ensure its overall structural integrity and safety. Vennu said in 20 months, his firm has inspected over 1,000 housing units and each were found to have between 50 and 120 defects, which is considered “average” in Malaysia, while those with fewer than 50 defects are deemed “exemplary”. “The focus during our inspections is mainly on hard-to-reach areas such as the roof, areas above the ceiling, including electrical components and fire break walls, and structural elements of the construction. “Meticulous inspection of areas prone to leakage, especially the toilets where 30% of defects are found, and using ponding tests for waterproofing evaluation is imperative.” Vennu added that particular attention is paid to electrical components such as the distribution box, sockets, lighting and fan points, and the overall integrity of the earthing system. He also said prevalent issues in construction projects are the hollowness of floors and walls, and cracks. “Housing units with major defects, such as structural cracks on columns, beams and slabs will be very expensive to repair and take a long time to complete. “The house defect inspection concept is relatively new to the public. But there is a critical need to have it done to avoid potential complications and hazards in the future.”
WEDNESDAY | FEB 7, 2024 4 RM2.8 billion for projects in Kelantan KOTA BHARU: The federal government has approved a development allocation totalling RM2.81 billion for Kelantan under the Fourth Rolling Plan for 2024 of the 12th Malaysia Plan, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad. Nik Nazmi, who is also Kelantan State Development Action Council joint chairman, said this represents an increase of RM0.24 billion compared with the original allocation for 2023. He said a total of 92 new projects have been approved this year, bringing the total number to 425. “The Works Ministry has received the largest allocation this year, which amounts to RM0.8 billion and will be used for 32 projects. “Some major projects under the Works Ministry are six packages of the Kota Bharu-Kuala Krai Highway, and nine packages of the Lingkaran Tengah Utama Expressway from Kuala Krai to Gua Musang. “A total of 14 out of the 15 packages are in progress, while one package is at the procurement stage, with the total construction cost of RM4.79 billion,” he said at the ICU Prime Minister’s Department Kelantan Development Office media night on Monday. The text of his speech was read by Kota Lama assemblyman Dr Hafidzah Mustakim. Nik Nazmi added a comprehensive transport network is actively being constructed, including highways, the East Cost Rail Link project and the Sultan Ismail Petra Airport. He said the federal government has also approved new phases for the Integrated River Basin Development Project with Phase 2 of Sungai Kelantan involving a cost of RM1.06 billion and Phase 3 of Sungai Golok at RM0.5 billion, Bernama reported. “For the record, 13 floodmitigation projects at various implementation stages have been approved in this state for a total cost of RM3.83 billion. “I hope all quarters, especially the implementing agencies involved, can ensure the smooth implementation of these projects and avoid any problems that could lead to delays.” Thai college launches Malay language programme AMUT PRAKAN (Thailand): The Thai Global Business Administration Technological College (TGBC) yesterday launched the Datuk Sri Ismail Sabri Yaakob Chair: Malay Studies and Civilisation. Speaking at the launch ceremony, former prime minister Datuk Seri Ismail Sabri Yaakob said the chair marks the beginning of introducing Malay language studies and Malay civilisation in colleges and universities across Thailand. “TGBC also deserves praise for being the first higher education institution in Thailand to establish a Chair in Malay Language Studies and Civilisation,” he said at the inauguration ceremony. He also expressed gratitude to TGBC for contributing to efforts in developing the Malay language and civilisation, especially among the younger generation. Ismail Sabri said the Malay language is crucial in achieving the nation-building agenda, as demonstrated in Malaysia and Indonesia. He emphasised that studying and understanding Malay civilisation is essential to enhance understanding and foster closer cooperation in the region. “In the context of Asean, Malay civilisation is crucial to propel the Southeast Asian region to compete on the world stage. “Southeast Asia is the third-largest sub-region population-wise in Asia after India and China. This strength must be utilised, but we need to get to know and understand our own culture to find common ground,” he said. Also present at the launch ceremony was TGBC director Dr Prattana Srisuk. – Bernama Be wary of ‘ugly side’ of cosmetics, public warned PETALING JAYA: An aesthetic dermatologist has warned the public to be cautious of common ingredients in cosmetic products that could pose potential harm to the skin. Dr Lim Ing Kien said fragrances and essential oils, known for their aromatic properties, can trigger allergies and skin irritation, while denatured alcohol, which is often found in skincare products, has the potential to dry out and irritate the skin. “Sulphates, specifically sodium lauryl sulfate and sodium laureth sulfate, can strip the skin of its natural oils and cause irritation. Parabens, commonly used as preservatives, have raised concerns about skin sensitivity and may contribute to conditions like atopic dermatitis and eczema.” Last year, the Health Ministry banned five cosmetic products in Malaysia after discovering that they contained scheduled poisons. Among them were Skinsister Babyskin Treatment Cream, Sahaana Fairness Cream, Skinmade AZ & Salicylic Acid + Licorice Root Serum, Glowing Night Cream, and Glowing Herba Night Cream. Lim said consumers should opt for skin-friendly alternatives with gentle ingredients such as hyaluronic acid, niacinamide, ceramides and natural oils. – SYED AZAHAR SYED OSMAN/THESUN oFrequent use of beauty products with harmful ingredients could lead to health, skin issues: Expert █ BY RAVEEN AINGARAN [email protected] CM clarifies cost of Gurney Bay project GEORGE TOWN: Penang Chief Minister Chow Kon Yeow has denied allegations that Phase 1 of the Gurney Bay project cost RM247 million, and stressed that the contractor is still responsible for any damage at the site. He said in a statement that RM247 million is the full cost of the Gurney Bay project, namely phases 1 and 2. “As of Dec 31, 2023, the state government has only paid RM58 million for the completed work. The RM247 million will only be spent when all components of the project are completed by 2026. “As for damage at the site, the contractor is responsible for two years under the damage liability period condition,” he said. On Sunday, Chow announced the opening of Phase 1 of Gurney Bay to the public and described it as a recreational park suitable for the whole family, uniquely located by the seaside. Former chief minister Lim Guan Eng had earlier uploaded a post on Facebook questioning the quality of work at the recently-opened recreational park, which is already showing defects. “The RM247 million spent should bring an international-standard recreational park,” said Lim. – Bernama Drop in number of dengue cases PUTRAJAYA: The number of dengue fever cases dropped to 3,781 in the fourth Epidemiological Week (EW04) from Jan 21 to 27, compared with 3,971 in the previous week, with seven deaths due to dengue fever complications. Health Director-General Datuk Dr Muhammad Radzi Abu Hassan said the cumulative number of dengue fever cases reported up to EW04 was 14,458 cases, compared with 8,968 reported for the same period last year. He said nine deaths due to complications from dengue fever had been reported, compared with four for the same period in 2023. “The number of hotspot localities reported in EW04 was 148, compared with 127 in the previous week,” he said in a statement. He added that of the 148 localities, 124 are in Selangor, followed by 14 in the Federal Territories of Kuala Lumpur and Putrajaya, five in Negeri Sembilan, three in Perak and one each in Penang and Sabah. – Bernama Health Director-General Datuk Dr Muhammad Radzi Abu Hassan said the move follows a series of measures the ministry took throughout 2023 to ban cosmetic products containing harmful ingredients. “There is a need for public vigilance when buying cosmetic products to safeguard against potential harm, and contribute to a healthier and more responsible beauty industry.” Lim said banned ingredients in skincare include mercury, which is found in some skin-lightening products, and is known to cause kidney damage and skin irritation, while hydroquinone, although not universally banned, is restricted in numerous countries due to its classification as medication. Lim added that the frequency of using a product plays a pivotal role in the development of skin conditions as excessive use can overwhelm the skin’s natural pH balance. He said having a balanced skincare routine is essential to allow sufficient time to maintain and restore the skin’s texture. It is advisable to follow recommended usage instructions, gradually increasing frequency based on the skin’s tolerance. “It’s wise to start with a once-aday application and work your way up to twice daily when the skin has adapted to it. Adhering to the manufacturer’s instructions before using any skincare product will ensure an effective skincare routine and lower risk.” Lim said it is crucial to note that not all brands marketed with celebrity endorsements are suitable for every skin type. “The mere association with a celebrity does not guarantee a product’s effectiveness or safety. While the appeal of celebrity endorsements may be tempting, individuals must prioritise their unique skin types and sensitivity over promotional tactics. “In a market saturated with options, making choices based on individual research rather than celebrity influence is key to maintaining healthy skin.” Lim advised those who suspect they have a negative reaction to a cosmetic product to immediately discontinue using it. “In the event of severe reactions, it is advisable to consult a dermatologist. To prevent adverse effects, consider patch testing new products on a small skin area before full application. “This proactive approach can help individuals identify and avoid potential irritants and ensure a healthier and more responsive skincare routine.” To attain cosmetic goals without compromising skin health, Lim said the public should opt for skin-friendly alternatives featuring gentle ingredients like hyaluronic acid, niacinamide, ceramides, and natural oils. Mineral-based sunscreens provide a milder option compared with its chemical counterparts. “Embracing a minimalist skincare routine allows the skin to maintain its natural balance. Prioritising a balanced diet, sufficient hydration, and stress management contributes significantly to overall skin health,” he said.
WEDNESDAY | FEB 7, 2024 5 Five cops nabbed processing ketum MALACCA: Six men, including five police officers, were arrested at a house in Alor Gajah, while processing ketum drinks on Monday. State police chief Datuk Zainol Samah said all suspects, including two senior police officers, aged 31 to 55, were arrested at 11.30pm by a team of officers from the Department of Integrity and Standards Compliance. He said the team seized 5.2 litres of ketum drinks, which was packed into several bottles and wrapped in plastic. They also seized a pair of police uniforms. “All the police officers arrested are attached to the state contingent police headquarters. We will ensure the investigation is carried out transparently and we will not compromise with any officer involved in a breach of discipline, which could have negative implications on the good name of the police force.” He also said this kind of operation will continue, so that appropriate action can be taken against officers involved in activities that can affect the credibility and confidence of the community in the police force. Zainol said a remand application for the six suspects will be made and the case will be investigated under Section 30(2) of the Poisons Act 1952, punishable under Section 30(5) of the same law. – Bernama Death of man after scuffle to be probed ALOR SETAR: Kedah police have opened an investigation paper under Section 302 and 304 of the Penal Code on a recent scuffle involving policemen and an individual in Langkawi, which resulted in death. State police chief Datuk Fisol Salleh said initially, the case was classified as sudden death after the man was pronounced dead by a hospital on Feb 1. “The incident occurred on Jan 29 when a team of policemen from the Langkawi police headquarters detained a 31-year-old man at a petrol station due to his suspicious behaviour. “During the arrest, a scuffle broke out, resulting in the suspect sustaining injuries to his right temple, neck, right ear, right hand and right knee. “One officer and three policemen also suffered minor injuries.” A video that showed a man being detained by a group of policemen at a petrol station and his subsequent treatment at the hospital, was subsequently circulated on social media. Yesterday, family members of the deceased demanded justice for his death and urged police to provide an explanation regarding the incident. – Bernama Four arrested over RM1.3m false claims KUALA TERENGGANU: A headmistress was remanded for six days in connection with false claims amounting to RM1.3 million for food and drink supplies to hostel students. An order to remand the 46-year-old woman was issued by Magistrate’s Court senior assistant registrar Yuhainis Mohd Roslan yesterday. A company manager and a supervisor, who are both 34, were also remanded for two days to assist in investigations. The case is being investigated under Section 18 of the Malaysian Anti-Corruption Commission (MACC) Act 2009. Yesterday, MACC arrested four individuals believed to be involved in making false claims, involving a supply contract worth RM1.3 million from 2022 to 2023 for 100 students of a primary school in Terengganu, while the actual number of students was only 35. However, another individual, the chief administrative assistant, was released on MACC bail due to health problems. – Bernama MACC summons 20 witnesses over Spanco deal KUCHING: The Malaysian Anti-Corruption Commission (MACC) has summoned over 20 witnesses to assist in the investigation involving Spanco Sdn Bhd, the sole company holding the concession to supply and maintain government vehicles. MACC chief commissioner Tan Sri Azam Baki said he does not rule out the possibility of calling members of the previous government who were involved in awarding the contract to the company, Bernama reported. “We will call anyone, even the decision makers at the time who decided to award the project to Spanco,” he said, adding that this may include the former prime minister and finance minister. He also said the investigation includes finding out how the company was awarded the contract, and the probe into Spanco Sdn Bhd will not affect the company’s existing contract to supply and maintain government vehicles. “The focus of our investigation will be on two aspects, namely the dispute over the cancellation of a letter of intent (LOI) and also how the company was able to get the contract. The existing contract (to supply and oInvestigations may necessitate questioning of previous govt members, including ex-PM, says chief commissioner maintain government vehicles) is still on, the investigation will not cancel the contract.” On Monday, Prime Minister Datuk Seri Anwar Ibrahim said issues involving contracts with Spanco will harm the country. Since 1993, Spanco has held the concession to supply and maintain government vehicles, but when the contract expired in 2019, an open tender was launched for the award of the next contract. Berjaya Group and Naza Sdn Bhd formed a concession and obtained the contract through an LOI that year, but it was terminated in 2020 and the tender was reawarded to Spanco. In July last year, Berjaya Group founder Tan Sri Vincent Tan filed a lawsuit against the Finance Ministry and Spanco over the terminated LOI and claimed the contract was awarded to Spanco despite a higher price offered by the company. Famished escapee pleads for help from farm workers TAPAH: Five Felcra workers in Sungai Gempel were surprised when an illegal immigrant from the mass escape at the Bidor Immigration Temporary Depot gave in to hunger pangs and appeared on their farm for help on Monday night. Farm supervisor Mohd Firdaus Salim said the Rohingya man in his 20s was disoriented, weak, barefooted and famished when he showed up at 8.40pm. “I received a video call from an Indonesian worker living in a house on the farm, saying there was a stranger who was asking for food for 10 people and pleading for shelter. “They fed the escapee a meal of rice and told him to sleep in a room, while I reported the matter to police.“ He said the escapee was arrested by police who arrived at their quarters while he was asleep. When queried later, the escapee could not recall the route to return to the 10 other escapees, whom he claimed to be at a location near the Bukit Tapah forest reserve. Mohd Firdaus said the farm workers quarters is located about 5km from the depot and the solar lamp illuminating the area might have attracted the escapee’s attention. Residents of the Sungai Merah Orang Asli village, located on the farm, are also on guard following the isolated arrests made in the area last night. Sukardi Bah Chapa, 46, who is the chairman of the Orang Asli Village Development and Security Committee of Sungai Merah, said 40 residents took turns patrolling from night to dawn to ensure the safety of the villagers. “We patrol from night to morning because we are concerned about the safety of the 275 Orang Asli in 72 houses here, including women and children,” he said, adding that they would also alert the authorities if any strangers appeared. In the breakout at 9.50pm on Feb 1, a total of 131 detainees comprising Rohingya and Myanmar nationals and Bangladeshis, escaped from the Bidor Temporary Immigration Depot by climbing a barbed fencing during a riot. Two of them died in road accidents and as of yesterday afternoon, a total of 56 escapees have been recaptured. – Bernama 86 detainees on the run recaptured IPOH: A total of 86 escapees who fled from the Bidor Temporary Immigration Depot last Thursday have been recaptured as of yesterday morning. State police chief Datuk Seri Mohd Yusri Hassan Basri said of the total, 64 were detained by police, another 22 by the Immigration Department, while the remaining 43 are still at large. He also said police and an immigration special operations team successfully recaptured 26 Rohingya men yesterday morning. “ The arrests were made at various locations, namely K m326.2 of the Nor th-South Expressway (nor thbound), Tapah Rest and Service Area (southbound), workers’ quar ters at the Felcra Sungai Gempel Bidor projec t, K ampung Orang Asli Kenoh Tapah, Post Woh Jalan Pahang Tapah and Kampung Batu Melintang Tapah.” Mohd Yusri urged the people to assist in locating the remaining escapees and to refrain from making any speculations. – Bernama DRUG MILL ... Selangor police chief Datuk Hussein Omar Khan (left) showing drug processing items seized from a mini narcotics lab during a press conference at the district police headquarters in Shah Alam yesterday. – BERNAMAPIC
WEDNESDAY | FEB 7, 2024 6 Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ DAP acts swiftly to rectify ‘billboard error’ GEORGE TOWN: It may be a storm in a tea cup. Still, DAP has had to respond to criticism on billboards it erected in conjunction with Chinese New Year, by putting up new versions of them. Several weeks back, billboards put up by DAP along the roads in the Bukit Bendera parliamentary constituency courted controversy as Chinese characters and “Gong Xi Fa Cai” were left out. There were only words in Bahasa Melayu – “Bersama Perkukuhkan Perpaduan Malaysia” (Together We Strengthen Malaysian Unity). Images of Chief Minister Chow Kon Yeow, Bukit Bendera MP Sherleena Abdul Rashid and Kebun Bunga assemblyman Lee Boon Heng were featured in the billboards. Some had a photo of former chief minister Lim Guan Eng, who is Air Putih assemblyman. Kebun Bunga and Air Putih is under Bukit Bendera constituency . One of the new billboards featuring text in Bahasa Melayu and Chinese. █ BY K. SUTHAKAR [email protected] Mahjong-inspired CNY art installation KUALA LUMPUR: Kwai Chai Hong, an iconic heritage lane in the heart of the city, is set to usher in Chinese New Year with the “Rise of the Dragon” installation, a tribute to the history of Mahjong, a tile-based game developed during the Qing Dynasty in the 19th century. Translated as “Little Ghost Lane” in Cantonese, the 36m alley tucked between Jalan Petaling and Jalan Sultan is a sight to behold. Upon entering the area, visitors will be greeted by a colourful “love bridge” with impressive murals that showcase characters in “The House of 72 Tenants”, a film produced by Shaw Brothers that portray daily life in a bygone era. From the entrance, a table with 144 cubes for a Mahjong game beckons visitors. The unique feature of the table is enhanced with a staircase resembling an “Uno” game, Bernama reported. Mahjong tiles are adorned with intricate designs and vibrant colours that hold deep meaning linked to Chinese tradition and folklore, while dragons hold significant symbolism in Chinese culture and are strongly associated with Chinese New Year. Bai Chuan Management Sdn Bhd purchased 10 pre-war shophouses in the area for restoration projects in 2018. Its managing director Zeen Chang said this year’s theme is to feature the spirit of continuing the legacy of traditional Chinese games passed down through generations since the Qing Dynasty. Elaborating on the significance of Mahjong, Chang said Kwai Chai Hong emphasised the role of Mahjong as more than just a game for the Chinese community, akin to the significance of chess to the Western community. “Mahjong was known once upon a time as the Chinese people’s favourite pastime. The symbolism of the game extends beyond our diverse Malaysian community, where unity strengthens our collective spirit. “The intricate Mahjong game, requiring a mix of tiles to form unique combinations, serves as a metaphor for our nation’s strength in diversity and unity, something Kwai Chai Hong is always passionate about,” she added. Chang said the “Rise of the Dragon” exhibit is aptly named for its thematic installation to represent a beast that has hibernated long and finally gathered enough strength to take on the new year with renewed vitality and power. The exhibition is being held in collaboration with artists oHeritage alley in city hosting ‘Rise of the Dragon’ exhibition to highlight unity symbolism of traditional tile game Wong Jia Min and Lee Chaer Shean, both 28 and architects from Johor Bahru based design studio Plus+Plus. Wong said the game of Mahjong played in rounds with reshuffling, mirrors the act of resetting the year, symbolising prosperity, union, harmony and peace for the new year. “The Mahjong panels and wire mesh collectively craft the silhouette of a dragon, awakening from its long slumber as winter ends and soaring to the skies, representing hope for a better and more prosperous beginning in the Year of the Dragon.” Lee said the Mahjong game, requiring a mix of tiles to form unique combinations, also serves as a metaphor for a nation’s strength in diversity and unity. “This installation is more than an artistic display. It is a tangible representation of hope, inviting individuals to contemplate and embrace a new life chapter as they welcome the Year of the Dragon.” With a maximum of four players per session, Mahjong is a highly social game that celebrates unity and togetherness, and requires both luck and skill to win. The loud clacking of the tiles, which adds to the festive atmosphere, is said to mimic the sound of firecrackers being set off to drive away misfortune. Kwai Chai Hong will be open to the public daily from 9am to midnight and “The Rise of the Dragon” installation will be available for viewing from until March 3. However, the billboards outraged Penang Front Party president Datuk Patrick Ooi, who posted a video in Hokkien a few weeks ago and another one later in Malay, criticising DAP and the Penang government. DAP subsequently put up new versions of the billboards that incorporates Chinese characters as well as Chinese New Year greetings in Bahasa Melayu and Chinese. During Deepavali last year, billboards in the constituency also carried Bahasa Melayu words only – “Pelbagai Warna Satu Negara” (Different Colours One Nation) – with no Deepavali greetings either in English, Malay or Tamil. Ooi said DAP won big in the last general election, with over 80% backing from Chinese and Indian voters. “Now, when their leaders are promoting unity and the Madani government, they have left out Tamil and Chinese characters from billboards. “This is unacceptable. Are they ignoring our plural society?”
WEDNESDAY | FEB 7, 2024 7 Thailand confident of holding Myanmar crisis dialogue BANGKOK: A new Thailand-led humanitarian initiative aims to pave the way for talks between warring camps in military-ruled Myanmar, a senior Thai official said, three years after a coup triggered instability and a wave of violence across the country. Thailand plans to establish a humanitarian safe zone later this month at its border with Myanmar, near the Mae Sot-Myawaddy crossing, to deliver food and medical supplies to local communities and 20,000 people displaced by fighting, said Thailand’s vice-foreign minister Sihasak Phuangketkeow. He added that the plan would augment efforts by the 10-member Association of Southeast Asian Nations (Asean), which has tried unsuccessfully to start a peace process between the military and its enemies among ethnic minority oAid effort aimed at leading humanitarian safe zone near border-crossing and bringing conflict under control DETAINED ... Bangladesh Border Guard personnel escorting a Myanmar Border Guard policeman seeking refuge in Bangladesh’s Ukhia region along the Bangladesh-Myanmar border in Cox’s Bazar district yesterday. – AFPPIC Vietnam, China agree to improve bilateral ties HANOI: Permanent Deputy Minister of Foreign Affairs Nguyen Minh Vu and Chinese Assistant Minister of Foreign Affairs Nong Rong have shared their view on measures to materialise high-level common perceptions between the two countries. During their talks in Ho Chi Minh City on Feb 4, the officials focused on how to concretise the joint statement on continuing to deepen and elevate the comprehensive strategic cooperative partnership between the two countries, and to build a Vietnam-China community with a shared future that carries strategic significance. They noted with pleasure the positive development pace of the bilateral relationship and its milestones over the years, especially the visit to China by party General Secretary Nguyen Phu Trong in October 2022, and the state visit to Vietnam by China President Xi Jinping in December 2023. The officials agreed to step up high-level exchanges, contacts and visits, effectively implement cooperation mechanisms between the two parties, and organise the 16th meeting of the Vietnam-China Steering Committee for bilateral cooperation. The two sides will also enhance collaboration in national defence, security, external affairs, culture, education and tourism, and peopleto-people exchange, while expanding cooperation in economy and trade, and transport connectivity, for the sake of their people and businesses. They will work together to better manage the common border line, and satisfactorily address border issues lingering or emerging, in line with their reached documents and agreements. Vu, who is also secretary-general of the steering committee for Vietnam–China bilateral cooperation, suggested the two sides foster their transport connectivity, especially roads and railways connecting Vietnam’s northern provinces and China’s southern and southwestern regions. He called on China to expand its import of Vietnamese agro-aquatic products and facilitate the establishment of Vietnamese trade promotion offices in Haikou, Chengdu and Nanjing. He said the two sides should work to negotiate and sign a framework agreement on rice trade soon, suggesting China support Vietnamese businesses that have received the national brand title to build distribution channels and develop brands in the neighbouring market. Vu also suggested the two sides expand collaboration in investment and direct relevant agencies and enterprises to remove prolonged obstacles to a number of industrial projects, speed up implementation of those in Vietnam using China’s non-refundable aid and form a working group to promote tourism cooperation. – Bernama Thaksin faces possible royal insults charge BANGKOK: Thailand’s attorneygeneral is considering prosecuting convicted former Thai premier Thaksin Shinawatra over an alleged insult of the powerful monarchy, an official said yesterday, just weeks away from his possible release on parole. The complaint concerns a 2015 interview he gave while in South Korea and was filed by a junta that ran Thailand after the military overthrew a government led by Thaksin’s sister. Thaksin has repeatedly pledged loyalty to the monarchy. Insulting the crown is a serious offence and a major slur in Thailand, where the constitution states the king must be held in a position of “revered worship”. The lese-majeste law is among the world’s strictest, with each perceived offence punishable by up to 15 years in prison. The influential Thaksin, prime minister from 2001 to 2006, made a dramatic homecoming last August from 15 years in self-imposed exile to serve an eight-year jail sentence for abuse of power, later commuted to one year by the king. The billionaire is being detained at a hospital with an undisclosed health problem and has yet to spend a full night in prison. He is eligible for parole later this month. Prayut Petchkhun, spokesperson for the attorney-general’s office, told reporters the seven-year delay in acting on the royal insults complaint was because Thaksin had been abroad. He gave no timeframe for when a decision would be taken, adding Thaksin, 74, had denied wrongdoing and provided authorities with “a letter requesting fairness”. He did not elaborate on the allegation against Thaksin. – Reuters B R I E F S SNOWFALL BURIES CANADA ATLANTIC COAST MONTREAL: Residents in Canada’s Atlantic coast on Monday were digging out from a “historic” snowfall that paralysed parts of the province of Nova Scotia over the weekend, triggering a state of emergency. More than a metre of snow combined with powerful gusts of wind halted transport networks and forced many businesses, government offices and schools to shutter. “It is very likely that areas around southeastern Cape Breton exceeded 1m of precipitation, Environment Canada meteorologist Bob Robichaud said, describing the storm as “historic” in scale. “If we look at the entire event, from Friday until this morning, these are record quantities,” he said. Sunday afternoon, authorities on the province’s Cape Breton island in the Gulf of St Lawrence declared a state of emergency, urging citizens to only travel out of “absolute necessity”. “With this amount of snow and this type of snow, it’s heavy and sticky, it’s challenging, so we’ll take time to deal with it,” Nova Scotia Premier Tim Houston told a news conference on Monday. On social media, residents shared images of the storm’s aftermath, some showing snow accumulations as high as the top of doors or the roofs of houses. – AFP GUATEMALA MULLS TIES WITH CHINA GUATEMALA CITY: Guatemala is considering reaching out to develop formal trade ties with China, the Central American country’s foreign minister told Reuters on Monday, although it plans to maintain its existing relations with Taiwan. The Central American country is one of a handful of Taiwan’s remaining allies as countries increasingly side with the world’s number two economy, which claims democratically-ruled Taiwan as its territory. “We are going to continue working with Taiwan at the levels we have been doing,” Foreign Minister Carlos Ramiro Martinez said in an interview. “But the president has pointed out that we cannot ignore the weight and power China represents.” President Bernardo Arevalo assumed office in midJanuary amid a fraught transition process, vowing to put an end to corruption and also establish relations with China. “We are interested in approaching them to try and develop some relationship around trade,” Martinez said, adding that this could materialise as an “office of trade interests” that would help find a Chinese market for Guatemalan products. armies, and an armed resistance movement. The ultimate goal was to bring the conflict under control and open up dialogue channels. “We don’t want to see a Myanmar that is destabilised further,” he said, adding the process must be “effective, credible and transparent”. The initiative, endorsed last week by Asean foreign ministers and a representative from Myanmar, will see the Thai and Myanmar Red Cross deliver supplies on the ground under the observation of Asean’s humanitarian aid body. Myanmar has been locked in conflict since the military seized power in 2021, upending a decade of tentative democracy and reform. The United Nations said at least 2.6 million people have been displaced by fighting and more than 18 million people are in need of assistance. Asean’s peace plan, which Myanmar’s generals agreed to in April 2021, has yet to advance, with frustration in the bloc about the junta’s lack of commitment. Central to the plan is dialogue between rival forces, which the generals call “terrorists” and refuse to engage with. Sihasak said the Thai-led plan could lead to talks that include the junta, ethnic armed groups and a shadow National Unity Government allied with prodemocracy militias. He did not say if the junta had agreed to such talks. “Some kind of a dialogue process should begin maybe at least by the middle of the year,” Sihasak said without elaborating. Thailand had consulted international partners, including Myanmar’s other neighbours, India and China, he added. “It’s about paving the way for Myanmar to once again reengage and engage constructively with the international community,” he said. “This is an opportunity for some dialogue, constructive dialogue, to begin.” – Reuters
WEDNESDAY | FEB 7, 2024 8 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM King Charles III diagnosed with cancer LONDON: King Charles III has been diagnosed with cancer and has begun treatment, Buckingham Palace said on Monday, sparking a flood of support from around the world. Charles, who became king upon the death of his 96-year-old mother Queen Elizabeth II on Sept 8, 2022, has generally enjoyed good health, barring injuries from polo and skiing. But the palace said during his recent hospital procedure for benign prostate enlargement, “a separate issue of concern was noted”. “Subsequent diagnostic tests have identified a form of cancer,” the palace said in a statement, adding that he had begun treatment, but without elaborating on the type of cancer found or how advanced it was. The palace said the king “remains wholly positive” and “looks forward to returning to full public duty as soon as possible”. He had been advised by doctors to postpone public duties, although he would continue to “undertake state business and official paperwork as usual”, the palace added. The shock announcement sparked messages of support, with Charles’s estranged son Prince Harry saying he had spoken with his father and would visit him soon. Harry, the younger of Charles’s two sons with the late Princess Diana, who now lives in California with his wife Meghan Markel, plans to travel to see the king in the UK over the coming days, a source close to the prince said. – AFP B R I E F SSNOW, ICE DISRUPT TRIPS HOME FOR MILLIONS BEIJING: Freezing rain, snow and ice have snarled traffic in central and eastern China as billions of people travel home ahead of the Spring Festival holiday in blistering cold weather that has swept through parts of the country over the past week. Hunan and Hubei provinces have borne the brunt of the severe weather, which worsened over the weekend, slowing highway traffic to a crawl and cancelling hundreds of trains. The travel disruptions coincide with the biggest mass travel migration in the world as millions flock home to see their families for the Chinese New Year. Over the past few days, videos across Chinese social media showed images of people stranded on trains and or trapped in cars on snowy highways in several cities, including Jingzhou. One driver was trapped in a car for three days, business outlet Yicai reported on Monday, and a passenger going to Wuhan was stuck on a train after it lost power supply amid freezing temperatures, social media videos showed. – Reuters CADET DIES FROM RESPIRATORY INFECTION BOGOTA: A teenage cadet has died, three others are hospitalised and nearly 100 are in isolation following a respiratory infection outbreak at a military school in Colombia, the Bogota mayor’s office said on Monday. Health authorities in the South American capital are warning of “an outbreak of severe acute respiratory infection, potentially due to influenza” at the General Jose Maria Cordova Military Cadet School. About 290 people have been exposed, with 101 presenting symptoms and 98 in isolation. Three people are hospitalised, two of whom are in intensive care. The Colombian army confirmed the outbreak and said measures including isolation protocols have been put in place “in order to prevent the spread”. The mayor’s office said health authorities were continuing to track down cases. – AFP Australia outraged over writer’s suspended death sentence SYDNEY: Australia’s government said yesterday it had expressed “outrage” to China over a suspended death sentence handed to ChineseAustralian dissident writer Yang Jun. Yang was sentenced to death on Monday with a two-year suspended execution and had all of his property confiscated, the Chinese Foreign Ministry said. The Beijing court found him guilty of “espionage”, a ministry spokesman said. The sentence sent a chill through AustraliaChina relations, which had been improving after a years-long standoff. Australia has conveyed “our dismay, our despair, our frustration, but to put it really simply, our outrage at this verdict”, Prime Minister Anthony Albanese told reporters in Canberra. “This is a very harsh sentence on Dr Yang, who is a man who’s not in good health, and we will continue to make the strongest representations,” the Australian leader said. Australia’s Foreign Ministry said it understood the sentence may be commuted to life imprisonment if no “serious crimes” are committed for two years. The Chinese-born Australian citizen has been in jail since 2019 on spying allegations. The writer, whose pen name is Yang Hengjun, has denied the allegations, telling supporters he was tortured at a secret detention site and that he feared forced confessions may be used against him. Albanese said his government had summoned the Chinese ambassador to Australia, Xiao Qian, on Monday and would make representations at all levels. “We have said very clearly that we will cooperate with China where we can, but we’ll disagree where we must. We must disagree with this harsh action by China. We have done so. We will continue to do so,” Albanese said. The prime minister declined to say whether he would withdraw his invitation last year for Chinese Premier Li Qiang to visit Australia. “We’ll respond directly and clearly, and unequivocally to China. What we won’t do is conduct diplomatic negotiations through the media,” Albanese said. East Asia analyst at the Sydney-based Lowy Institute think-tank Richard McGregor said the sentence should be seen in the context of China’s Ministry of State Security taking a much higher profile in the past year, including with social media posts under its own name. Australia’s prime minister had managed to put a floor under relations with China in the past 18 months, McGregor said. “This is a reminder that there is also a ceiling.” – AFP Trump pressures Republicans to kill Ukraine aid deal WASHINGTON: It is a full nine months until the presidential election but Donald Trump is already wielding extraordinary influence as he seeks to bend US foreign policy to his ambitions of a return to the White House. The Republican has been a private citizen since leaving office in 2021, but is running for re-election and urging his party to reject a bill tying the toughest border security measures in a generation to US$60 billion (RM286 billion) in Ukraine aid. “We need a separate Border and Immigration Bill. It should not be tied to foreign aid in any way, shape or form,” Trump, who looks almost certain to be facing President Joe Biden again in November, posted on social media. Biden and Trump offer starkly divergent approaches to Ukraine, with the Democrat clear that helping the pro-Western ally repel Russia is vital to ensure a safer world while his predecessor pushes an isolationist, “America First” policy. At home, Biden has pressed for a humane immigration policy but Republicans point to statistics showing migrant apprehensions reaching a record high of 302,000 in December, a surge Trump has been wielding as a major issue in the campaign. The demand that military aid for Ukraine be tied to immigration reform came from Republicans in the first place, with Trump keen to equate the crisis at the border with chaos abroad that he repeatedly claims he would have averted. On Sunday, senators unveiled a bipartisan US$118 billion package of immigration restrictions that Biden has committed to signing into law. It is tied to a foreign aid package that includes US$60 billion for Ukraine and US$14 billion for Israel. The deal provides US$20 billion in new border funding and would be a major win for Ukrainian servicemen fire on Russian targets not far from Bakhmut in the Donetsk region. – AFPPIC oFormer president wields iron grip on party, urging for separate border, immigration Bill not tied to foreign aid immigration hawks, as it is full of concessions that Democrats would normally have opposed. “We don’t have enough agents. We don’t have enough folks. We don’t have enough judges. You don’t have enough folks here. We need help. Why won’t they give me the help?” a frustrated Biden said on Monday when asked about the bill’s prospects. But Trump has an iron grip on Republicans leading the House of Representatives and has called repeatedly for the party to kill the legislation and deny Biden and his Democrats a political victory ahead of November’s election. “This Bill is a great gift to the Democrats and a death wish for the Republican party,” Trump said on Monday on his Truth Social website. Some House Republicans in districts won by Biden have voiced concerns about walking away from the deal, especially when the party plans to impeach Homeland Security Secretary Alejandro Mayorkas this week over the border crisis. But Trump’s overwhelming victories in the early nominating contests in the Republican presidential primary have solidified support around his candidacy, with more than 150 members of Congress now endorsing him. – AFP
WEDNESDAY | FEB 7, 2024 9 Russia, China accuse US of stoking tensions NEW YORK: Russia and China accused the US during a UN Security Council meeting on Monday of stoking already high tensions in the Middle East, with its recent retaliatory strikes on Iran-backed groups in Iraq and Syria. The US military struck dozens of targets in Syria and Iraq overnight on Friday into Saturday, in retaliation for a Jan 28 drone attack on a base in Jordan that killed three US soldiers. The strikes, which targeted elite Iranian units and pro-Iranian militant groups, have led to fears that the Israel-Hamas war in Gaza could spiral into a regional conflict. “It’s clear that American airstrikes are specifically, deliberately aimed to stoke the conflict,” said Russian ambassador Vasily Nebenzia, whose country had called for the emergency meeting. China’s ambassador Jun Zhang similarly claimed that the “US actions will certainly exacerbate the vicious cycle of tit-for-tat violence in the Middle East”. Anger over Israel’s devastating campaign in Gaza on Oct 7 has grown across the Middle East, stoking violence involving Iran-backed groups in Lebanon, Iraq, Syria and Yemen. A UN official called for “all parties to step back from the brink and to consider the unbearable human and economic cost of a potential regional conflict”. “I appeal to the council to continue to actively engage all concerned parties to prevent further escalation and the worsening of tensions that undermine regional peace and security,” said Rosemary DiCarlo, under-secretary-general for political and peace-building affairs. The American strikes have drawn criticism from the governments of Iraq and Syria, and also from Iran, which denies any role in last month’s drone attack. “Any attempt to attribute these actions to Iran or its armed forces is misleading, baseless and unacceptable,” Iranian ambassador Amir Saeid Iravani told the council on Monday. He pledged that if Iran faces “any threat, attack or aggression affecting its security” it would “not hesitate to exercise its inherent rights to respond firmly”. The White House said on Sunday it plans more retaliatory action. “Let me be clear, the United States does not desire more conflict in a region when we are actively working to contain and de-escalate the conflict in Gaza,” said deputy ambassador Robert Wood. He added: “We are not seeking a direct conflict with Iran, but we will continue to defend our personnel against unacceptable attacks. Period.” – AFP Stop violence by Israeli settlers, urges French minister JERUSALEM: French Foreign Minister Stephane Sejourne said Monday that Israeli settler violence must stop against Palestinians in the occupied West Bank, following a meeting with Israeli Prime Minister Benjamin Netanyahu. “Under no circumstances can there be forced displacement of Palestinians, neither out of Gaza nor out of the West Bank,” Sejourne said during a Middle East tour aimed at securing a truce between Israel and Hamas in Gaza. The French minister denounced antiPalestinian rhetoric and even calls to commit war crimes by Israeli officials, after some Netanyahu allies have appeared to endorse Jewish resettlement of the Gaza Strip after the war. Sejourne called for supporting the West Bank-based Palestinian Authority of president Mahmud Abbas. “The future of the Gaza Strip is inseparable from the future of the West Bank, we must prepare for this future by supporting the Palestinian Authority,” Sejourne said. “It must renew itself and redeploy as soon as possible in the Gaza Strip, where Hamas seized power in 2007,” he added. “I repeat: Gaza is Palestinian land,” the top French diplomat said on his first tour of the region since taking office in January. Since the Oct 7 attack triggered war between Israel and Hamas, at least 381 Palestinians have been killed by Israeli troops and settlers in the West Bank, according to the Palestinian Health Ministry in Ramallah. Israeli rights group Yesh Din dubbed 2023 the “most violent” year on record for settler attacks. – AFP Palestinians hope Blinken visit can deliver Gaza truce DOHA: US Secretary of State Antony Blinken met Saudi Arabia’s de-facto ruler on Monday during a Middle East visit Palestinians hope will clinch a truce before a threatened Israeli assault on Rafah, a border city where about half the Gaza Strip population is sheltering. Blinken arrived in Riyadh at the start of his first trip to the region since Washington brokered an offer, with Israeli input, for the first extended ceasefire of the war. Blinken’s meeting with Saudi Crown Prince Mohammed bin Salman lasted about two hours. State Department spokesperson Matthew Miller said Blinken and the crown prince had discussed regional coordination to achieve “an enduring end” to the crisis. Palestinian children waiting to receive food at a charity kitchen in Rafah. – REUTERSPIC oTop diplomat discusses regional coordination with Saudi crown prince to end crisis B R I E F SUK CARGO SHIP DAMAGED IN DRONE ATTACK DUBAI: A British-owned cargo ship was damaged in a drone attack off rebel-held Yemen, a maritime security firm said yesterday, the latest in dozens of incidents in the Red Sea. The Barbadosflagged ship “reportedly incurred minor damage on the port side” in an attack west of Hodeida, British firm Ambrey said, adding that there were no injuries. The ship speeded up and performed “evasive manoeuvres” before continuing south toward the Bab al-Mandeb strait, the firm said. Yemen’s Iran-backed Houthi rebels, who control much of the war-torn country, have been harassing Red Sea shipping for months in protest against the Israel-Hamas war. Their attacks have triggered reprisals by American and British forces, including a wave of air strikes that hit dozens of targets late on Saturday. – AFP CHILE MOURNS 123 KILLED IN WILDFIRE VINA DEL MAR: Chile began two days of national mourning on Monday for at least 123 victims of a raging wildfire, with the search continuing for the missing as survivors pick through the scorched remains of their lives. The streets were strewn with charred cars, debris and ash after flames tore through crowded hilltop neighbourhoods in the coastal region of Valparaiso, in the world’s third-deadliest wildfire this century. “I still have a lump in my throat and, not so much for the material stuff, but I mean, I lost several neighbourhood friends nearby, four more up there. That’s what hurts the most,” said Hugo de Filippi, a 34-year-old car mechanic. In the resort town of Vina del Mar, one of the hardest hit areas, volunteers brought in water, clothing and food, while using shovels and brooms to help with the clean-up. The blaze engulfed homes and cars, their burnedout husks now littering the streets as it remained unclear if they had been parked and abandoned, or if they were occupied with residents trying to flee the narrow streets of the hillside communities. – AFP “The secretary underscored the importance of addressing humanitarian needs in Gaza and preventing further spread of the conflict,” Miller said in a statement. The ceasefire offer, delivered to Hamas last week by Qatari and Egyptian mediators, awaits a reply from militants who said they want more guarantees it will bring an end to the fourmonth-old war. “Impossible to say if we’ll get a breakthrough, when we’ll get a breakthrough,” a senior US official told reporters during the flight to the Saudi capital. “The ball right now is in Hamas’s court.” Blinken also aims to win backing for US plans for what would follow a truce: rebuilding and running Gaza, and ultimately for a Palestinian state, which Israel now rejects, and for Arab countries to normalise ties with Israel. Washington also seeks to prevent further escalation elsewhere in the Middle East, after days of US airstrikes against pro-Iranian armed groups across the region. Miller said Blinken and the crown prince had discussed the urgent need to reduce regional tensions. In London, British Defence Minister Grant Shapps told parliament that the air strikes had depleted the ability of Yemen’s Houthis to target Red Sea shipping but the threat was “not fully diminished”. Israel threatened a new ground assault on Rafah, a small city on the southern border with Egypt where over half of Gaza’s 2.3 million people are now living, mostly in makeshift tents. Israeli Prime Minister Benjamin Netanyahu, visiting troops on Monday, said Israeli forces had killed or wounded more than half of Hamas’s fighting forces and would carry on until “total victory”. Senior Hamas official Sami Abu Zuhri dismissed Netanyahu as “playing the game of making delusional victories” in the face of continued resistance. The ceasefire proposal, as described by sources close to the talks, envisions a truce of at least 40 days when militants would free civilians among remaining hostages they are holding, followed by later phases to hand over soldiers and bodies. The only truce so far lasted a week in November. – Reuters
10 WEDNESDAY | FEB 7, 2024 @thesundaily FOLLOW ON TWITTER Malaysian Paper Enclosed is my payment of RM payable to SUN MEDIA CORPORATION SDN BHD. 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Muruku Buntong entrepreneur’s Deepavali snack, made from a still a national favourite 60-year-old recipe, is constantly in high demand. Chicken price float benefits consumers A week after subsidies ended, market prices are competitive and lower than subsidised prices, says expert. Full report —on page 3 Full report —on page 6 Full report —on page 4 Citing protection of country’s interests in terms of diplomatic, economic relations and security as reasons for joining meeting, Anwar says he remains steadfast in defending justice and rights of Palestinians. I will show up at Apec Story on page 2 Full story -on page 2 SCAN TO SUBSCRIBE Conduct due diligence on pension scheme ANY major changes to the civil servants’ pension scheme, salaries and contracts should be done after proper consultation. Conducting thorough due diligence on pension scheme modifications is imperative for fostering transparency and obtaining stakeholder support. The announcement by Deputy Prime Minister Datuk Seri Dr Zahid Hamidi regarding the exclusion of new civil servants from the pension scheme in favour of contributions to the Employee Provident Fund (EPF) has created some confusion among various stakeholders. However, Prime Minister Datuk Seri Anwar Ibrahim clarified that the policy change is still in the proposal stage. Before making any official announcements, it is essential for the government to conduct thorough consultations with stakeholders for a policy change of such significance. The Congress of Unions of Employees in the Public and Civil Services and the National Union of Teaching Profession are prominent stakeholders that must be involved in the decision-making process to ensure a smooth transition. Among the issues requiring detailed discussions are: 1. Ongoing salary revision for existing civil servants: 0 Delve into the existing salary revision scheme, including benefits and allowances for current civil servants. 2. Proposed salary scheme for EPF and long-term employment: 0 Outline the salary structure for individuals under the proposed new EPF and long-term employment scheme. 0 Emphasise the importance of announcing this alongside the revision in the salary scheme for current civil servants for comparison. 3. Promotion transparency at all levels, especially for administration and diplomatic officers/management: 0 Scrutinise the process and transparency of promotions across all levels, with a special focus on the administration and diplomatic officers/management tier. 4. Talent development and upskilling: 0 Address the need for talent development and upskilling initiatives among civil servants. 0 Advocate for opportunities for nondegree civil servants to enhance their qualifications and improve promotion prospects. 0 Propose funding for administration and diplomatic officers/management staff to pursue Masters and PhD programmes to upskill themselves. 5. Human resource challenges: 0 Explore human resource challenges, with a specific focus on transfer requests, especially for teachers. 6. Financial implications of policy changes: 0 Examine the overall financial implications of the proposed policy changes. 0 Emphasise the importance of providing assurance to financial markets that these changes will not adversely impact government spending in the long-term. Before making any announcements, it is essential to create a comprehensive communication plan that secures public support from relevant stakeholders. This precautionary measure aims to prevent the potential distortion of policy changes for inaccurate attacks on the government. While deliberating on the revision of employment terms for new batches of civil servants, emphasise a systematic and well-planned approach. The process should be executed meticulously, avoiding haste and ensuring careful consideration rather than being adopted in a rushed or haphazard manner. This well-thought strategy is imperative to navigate potential challenges and to promote a positive reception to the proposed policy changes. The writer is the former MP for Bangi. Comments: [email protected] “The process should be executed meticulously, avoiding haste and ensuring careful consideration rather than being adopted in a rushed or haphazard manner. It is crucial for the government to engage in stakeholder consultations before making any official announcements over the pension scheme. – ADIB RAWI YAHYA/THESUN COMMENT by Dr Ong Kian Ming
11 WEDNESDAY | FEB 7, 2024 Stop concealing Soviet crimes AS we remember the Auschwitz death camp and the Jewish Holocaust, let us recount the greatest mass killer of prisoners during World War II, the by-now-forgotten Soviet Major General Vasily Blokhin. Blokhin claimed to have executed tens of thousands of prisoners in the Soviet Gulag. He was the chief executioner for the NKVD (Soviet secret police). Commissar Blokhin used his Walther PPK pistol to kill thousands of his victims with a shot to the back of the head. He wore a butcher’s apron, long gloves, a leather hat and goggles. His primary target was Polish prisoners. Blokhin and his murderous assistants killed over 7,000 Polish officers, captured when the Soviet Union joined Germany in crushing Polish independence to restore the pre-World War (WW) I status quo. This was also Adolf Hitler’s goal. It was not world conquest, as the Allies falsely claimed. Russia’s strategic goals were similar. Joseph Stalin ordered the sinister-looking Blokhin to wipe out the flower of Polish aristocracy and erase that nation’s national identity. Blokhin also executed numerous Ukrainian nationalists as did Stalin’s secret police who, earlier, had executed or starved over six million Ukrainian farmers, a crime at least equal in magnitude to the Holocaust of Jews, the mentally unfit and gypsies. Why do we hear the endless repetition of the Holocaust and next to nothing about the more murderous Soviet crimes of mass murder? The artful British were the war’s premier propagandists. They not only helped draw the US into WWII, but they also largely masked the alliance between the US and Britain with the murderous Soviet regime. The strategic goal of the British was to divert attention away from Soviet crimes by emphasising Nazi transgressions. This process continues today. The Jewish Holocaust has almost become a state religion while the larger, earlier Ukrainian Holocaust (or Holodomor) is slipping away down the memory hole. We all know of the German-run Auschwitz, Treblinka, Bergen-Belsen and Buchenwald, but what of the Soviet Gulag death camps such as Solovetski, Kolyma, Magadan, Vorkuta, the Baltic-Volga Canal and the deportation centres in Central Asia. Without the splendid works of Alexander Solzhenitsyn, the memory of the Gulag, which stayed operational into the 1970s, would be gone. No one had a monopoly on suffering. We must not forget that our ally in WWII, the Soviet Union, caused 75% of all German casualties. British-American propaganda likes to make us believe that the Western allies – Britain, the US and Canada – defeated Germany. Not true. It was the Soviet Union that suffered losses of 8.7 million military and 19 million civilians. And 80% of the Luftwaffe was destroyed on the Eastern Front. Without Soviet participation, the Allies would not have won the war or defeated Germany and Japan. London and Washington were determined to downplay the key Soviet role in WWII. Accordingly, British and American propaganda was ordered to focus on the evils of Hitler while ignoring the even more murderous Soviet system. The bloody destruction of entire peoples such as the Chechen or Baltics and millions of others by Stalin was never mentioned by the democratic allies. Interestingly, films of Hitler playing with animals and his promulgation of laws to protect animals from human cruelty were censored. Russia has gone far to erase the memory of the Gulag. The Russian organisation “Memorial” that revealed the crimes of the Gulag was shut down by the Kremlin. The organiser of the murder by starvation or shooting of six million Ukrainian farmers, Jewish commissar Lazar Kaganovich, was never charged with major crimes. He died peacefully at 91 on a sunlit park bench in Moscow in 1997. Stalin even called Kaganovich “my Himmler” while talking to British warlord Winston Churchill. Stalin was a worse tyrant and mass murderer than Adolf Hitler, but he was our tyrant and essential ally, and we chose to ignore the facts. The writer is a syndicated columnist. Comments: [email protected] █ BYERIC S. MARGOLIS Alleviating food shortages via education THE United Nations has reported that almost 9% of the global population is grappling with hunger, projecting a distressing scenario where 840 million people could face food insecurity by 2030. Malaysia, too, is not immune to this rising threat, as highlighted by its moderate score on the 2022 Global Hunger Index. The score reflects a small yet concerning rise from 10.9% in 2014 to 12.5% in 2022, underscoring the pressing need for attention and action. This growing issue is attributed to factors such as heavy reliance on food imports, global price surges, environmental changes, climate variations and the underdevelopment of smallholder farms and urban farming. Despite governmental efforts to boost local food production, the nation remains vulnerable to future food insecurity. Higher education institutions can play a pivotal role in addressing food insecurity by contributing innovative solutions through research and development. While universities traditionally focus on providing foundational knowledge within specific disciplines, there is an emerging need to bridge the gap between theory and practical application. Graduates should not be limited to specific solutions, instead, they should be empowered to apply their knowledge to innovate and confront new challenges, guided and driven by a sense of purpose. This approach differs from vocational studies, where skills are immediately deployable for existing solutions. However, it does not mean that universities should neglect providing avenues for students to apply their acquired knowledge in real-world scenarios. They may not apply these skills to reinvent the wheel, but to create a foundation for further innovation. Private tertiary education often overlook the application of technological innovation in the agriculture sector. This oversight may stem from the misconception that agriculture is neither a lucrative career nor an industry with ample room for innovation, often perceived as laborious and mature. However, the recent global pandemic has emphasised the importance of food security, prompting countries such as Denmark, Saudi Arabia and Singapore to make significant strides in urban indoor farming using technology. The revival of the agricultural revolution extends not only to traditional farming but also to alternative meat production and aquaculture for sustainable food sources. This is where higher education institutions have a unique opportunity to foster interdisciplinary education, bringing together students from diverse academic backgrounds such as commerce, engineering and computer science. Modern urban farming practices, including precision agriculture, require minimal human labour, controlled environments, reduced resource usage and innovative technology integration. For example, an Internet of Things (IoT) project focusing on precision agriculture showcases the potential of interdisciplinary collaboration to address real-world challenges by optimising crop yield and resource utilisation. These types of projects entail the development of sensors Malaysia is grappling with the rising threat of food insecurity, as highlighted by its moderate score on the 2022 Global Hunger Index. – AMIRUL SYAFIQ/THESUN COMMENT by Ian Tan “Higher education institutions can play a pivotal role in addressing food insecurity by giving solutions through research and development. capable of monitoring essential environmental factors such as moisture, temperature and soil pH. Placed strategically across agricultural fields, these sensors transmit real-time data via the internet to a central processing unit. Engineering department students will acquire hands-on experience in sensor placement, bridging the gap between theoretical concepts, laboratory simulations and practical implementation. The project’s focal point is the seamless transmission and processing of collected data. For computer science students, the project presents an opportunity to tackle challenges associated with real-time data transmission in a demanding farm environment. This connectivity ensures that farmers can remotely access crucial information, enabling swift decision-making for optimal agricultural practices. The collected data, far from being raw information, can be converted into actionable insights through data analytics. Collaboration among students from the commerce, data science and engineering faculties will facilitate the identification of patterns and trends, empowering farmers to make well-informed decisions and optimise their agricultural practices. It should be noted that the impact of a Precision Agriculture IoT project should extend far beyond the confines of the university campus. By combining the expertise of students from commerce, engineering and computer science, this initiative can offer a tangible solution to real-world problems. Precision agriculture, empowered by IoT technology, has proven to revolutionise farming practices, enhancing sustainability, efficiency and environmental friendliness. While precision agriculture is not the sole project for practical implementation and interdisciplinary education, it serves as a testament to the transformative power of interdisciplinary collaboration in education. By breaking down traditional barriers between academic disciplines, students can gain a deeper understanding of their respective fields and contribute to solving complex challenges. The Precision Agriculture IoT project stands as a blueprint for future collaborations that harness the collective intelligence of diverse minds to create innovative solutions for a sustainable future. This is in line with the United Nations Sustainable Development Goals and the Malaysian government’s plans to build a technologically savvy society to achieve the aspiration of becoming a digitally-driven economy by 2030. The writer is an associate professor in Computer Science and serves as the head of the School of Mathematical and Computer Sciences at Heriot-Watt University Malaysia. Comments: [email protected]
ESG ESG WEDNESDAY | FEB 7, 2024 12 ESG principles continue to drive demand for office space KUALA LUMPUR: Environmental, social, and governance (ESG) principles will remain a key driver of demand for office space, mainly in Greater Kuala Lumpur, said JLL Appraisal and Property Services Sdn Bhd. Its managing director, Jamie Tan said the office segment experienced a surge in demand as companies increasingly relocated to modern and environmentally sustainable spaces that align with ESG principles. “ESG is shaping the market. This shift towards sustainable and compliant spaces was driven by a growing emphasis on corporate responsibility and the need to attract and retain top talent,” he said at JLL’s fourth quarter (4Q) 2023 Greater Kuala Lumpur Property Market Monitor. Tan also said that in 3Q and 4Q of 2023, buildings with green-certified offices were performing much better, had lower vacancy rates and experienced higher occupancy. It witnessed a significant decrease in vacancy rates by 500 basis points, indicating strong market demand and tenant preference for sustainable buildings, compared with non-green-certified buildings which saw a modest movement of 100 basis points in vacancy rates. He noted that office, logistics, and data centre segments would remain robust in the next 12 months, as ongoing shifts towards new supply chain principles and wider adoption of technology and sustainability would continue to fuel the growth of the segments. “Consequently, we anticipate further rental growth for high-quality assets situated in hotspot locations that meet tenants’ expectations regarding efficiency and sustainability. “These assets will command a premium in the market due to their attractiveness amenities and ability to cater to the evolving needs of occupiers such as green features,” said Tan. Several notable developments are expected to reach completion this year which include the Lendlease office at TRX, PNB Project 1194, and CT 1@ Pavilion Damansara Heights. For the logistics segment, the segment is expected to have about 10.5 million square feet (sq ft) of warehouse space in the next three years. Tan said the changes in the supply chain and implementation of the China Plus One concept continue to drive the demand for high-quality logistics space. Four warehouses are expected to be completed this year, namely Axis Mega Distribution Centre Phase 2, E-Metro Logistics Park Metrohub 1, E-Metro Logistics Park Metrohub 2 and ALP Bukit Raja Omega, which would contribute 3.68 million sq ft in total. As for the data centres segment, he said growth is anticipated to continue at a faster pace and it is projected to reach around 750 megawatts (MW) by the end of 2025 from the current supply of over 200 MW. “If the proposed data centre projects are realised, the country could potentially have a total capacity of over 2,700 MW within the next four years. “Demand drivers for data centres are robust, and the additional capacity is expected to be absorbed due to growing requirements for fast and efficient data management and storage solutions,” Tan said. Furthermore, artificial intelligence (AI) technologies are also playing a key role in accelerating demand for data centres in Malaysia. “We are optimistic about the longterm prospects of the segment, driven by strong demand underpinned by flourishing digital economies and cloud migration.” – Bernama Reduce capital expenses by optimising power quality DUE to rapid urbanisation, buildings in Malaysia rely significantly on electricity to meet energy needs for homes and businesses. The need for cooling is also expected to increase, leading to more electricity usage in the future. On average, the demand is predicted to grow between 1.8% and 2.9% yearly in all scenarios as revealed by the International Renewable Energy Agency (Irena). The demand for energy is also set to further escalate, driven by the current growth in generative AI technologies and similar tech trends. When it comes to sustainability, we are encouraged to see the commitment by our government in lowering emissions while ensuring the growth of a low-carbon economy for the country, especially with the introduction of the National Energy Transition Roadmap (NETR). In line with these efforts, the building sector need to rise above to play its part too, because electricity will play a much larger energy consumption role in the future than it does today. In the near future, buildings will not just consume power, but they will also produce, store, and share it. Due to the intermittent nature of renewables and effects of power conversion, managing power quality will be important. It requires a comprehensive approach that involves a combination of monitoring, preventive measures, as well as collaboration with expert partners and stakeholders. By implementing these strategies, businesses can minimise downtime, reduce equipment damage, and ensure a reliable and high-quality power supply. What is power quality? Electric power quality is the degree to which the voltage, frequency, and waveform of a power supply system conform to established specifications. Good power quality can be defined as a steady supply voltage that stays within the prescribed range. It is useful to consider power quality as the compatibility between what comes out of an electric outlet and the load that is plugged into it. Drawing from our experience, it’s observed that numerous companies in Malaysia often do not prioritise power quality, mainly because it is not directly factored into the determination and analysis of production output. Companies typically analyse downtime or immediate equipment failure after oDemand for energy in Malaysia expected to grow, driven by need for cooling and tech trends these events occur. Subsequently, they implement mitigation measures to justify production losses, establishing a correlation between the impact of power quality on production loss and the cost of investing in power quality mitigation measures. While engineering and maintenance personnel display a heightened awareness of the importance in implementing power quality measures, the management and finance departments generally adopt a cautious “wait and see” approach toward power quality mitigation measures, based on our observations. The impact of power quality issues cannot be underestimated. They stand as a significant cause of unscheduled downtime, equipment malfunctions, and costly damages. When power quality falters, be it due to interruptions, voltage dips, or harmonic pollution, the repercussions ripple through the business operations. This is a matter of increasing concern for businesses and end-users, considering not only the frequency of such incidents but also the substantial financial impact. Did you know that 30% to 40% of all unscheduled downtime today can be traced back to power quality problems? About 50% of mission-critical power outages are attributable to power quality issues. When we look at the cost, we found that companies spend on average RM70 billion annually on power quality issues and experience revenue loss of about RM600,000 when a facility is affected. To break this down further, the downtime costs to mission-critical facilities range between RM65,000 up to a staggering RM26 million an hour! That’s about 3% to 6% of the manufacturing sales money spent on correcting power quality problems. How to manage power quality? Effective power quality management demands a comprehensive approach encompassing three vital elements: monitoring, taking preventive measures, and collaborating with expert partners and stakeholders. Monitoring marks the initial phase in designing and implementing power quality mitigation measures. It not only establishes a record of power quality issues but also compiles data on power usage for effective energy management. Taking preventive measures requires companies to study the patterns of how the electricity is behaving and the u n i q u e characteristics of the electricity. C o n s i d e r p r e v e n t i v e m e a s u r e s e n s u r i n g immunity to voltage sags to s a f e g u a r d against issues affecting major e l e c t r o n i c loads and c r u c i a l p r o d u c t i o n lines due to voltage drops. This is an o n g o i n g p r o c e s s i n v o l v i n g c o n s i s t e n t m o n i t o r i n g , a d o p t i n g enhancements, and improving power quality. Expert partners and stakeholders can provide valuable insights and support in optimising power quality solutions. This collaborative approach ensures a comprehensive strategy and the integration of expert knowledge to address potential challenges effectively. By implementing these steps, companies can minimise downtime, reduce equipment damage, and ensure a reliable and high-quality power supply. Increased productivity and ROI Investing in power quality solutions not only ensures high-quality power, leading to increased productivity but also provides a quick return on investment (ROI). Companies can reduce their capital expenses up to 30% when they optimise their e l e c t r i c a l system, avoid o v e r s i z i n g , and limit r e d u n d a n t capacity. They can also reduce energy losses by up to 30% when they optimise their p o w e r consumption and reduce total process e n e r g y consumption by reducing CO2 emissions. Good power factor can also lower power bills and reduce power losses in transformers and conductors. Firm can reduce utility billing penalties and lower operating expenses up to 10%. One example comes from Schneider Electric’s customer in the Gulf region. We work with Kuwait’s Ministry of Electricity and Water that faced with fast-rising demand, a distribution network running at capacity, plus transformer and switchgear difficulties. As a solution, they used advanced power quality meters to remotely monitor each capacitor bank. Although rated for 50°C ambient temperature, outdoor capacitor banks are cooled to ensure uninterrupted performance even during the most severe temperatures. As a result, they received an additional 15% to 20% kVA network capacity – and reduced transformer losses by approximately 20% to 25%. Today, their electricity tariffs are amongst the lowest in the world. Meeting sustainability goals Achieving sustainability goals is contingent upon monitoring energy consumption. This not only serves the direct purpose of aligning with sustainable practices but also indirectly opens avenues for effective power quality monitoring. The same monitoring devices used for tracking energy consumption can be leveraged to assess and enhance power quality. The commitment to sustainability goals not only streamlines monitoring processes but also contributes to the implementation of power quality mitigation measures. This is made possible by readily available data and records, which can be instrumental in preparing reports and proposals for company management. These insights, in turn, guide the implementation of robust power quality mitigation measures, ensuring that companies operate in an energy-efficient and sustainable manner. This article is contributed by Schneider Electric country president for Malaysia Eugene Quah (pix) and Perunding Shanu managing director Gunasegaran Reddy
WEDNESDAY | FEB 7, 2024 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: [email protected] Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: [email protected] Selangor keen to speed up digital transformation KUALA LUMPUR: The Selangor state government plans to hold discussions with telecommunications service providers (telcos) soon to hasten its digital transformation ambitions. In line with the state government’s desire to transform Selangor into a smart state by 2025, Menteri Besar Datuk Seri Amirudin Shari said that working with telcos could potentially speed up the process of achieving the goals. “I may discuss with telcos and local authorities (moving forward), which can be a win-win situation (for both parties),” he told reporters after a memorandum of understanding (MoU) signing ceremony between Ampang Jaya Municipal Council (MPAJ) and CelcomDigi Bhd, yesterday. He added that the goals involved industrial factors, such as the development of managed industrial parks, “and a part of it, includes From left: Mohamad Idham, Amirudin, MPAJ Yang Dipertua Dr Ani Ahmad and Selangor State Assembly Deputy Speaker Kamri Kamaruddin at the ceremony. oMB: We want to work with telcos on ambition to become smart state by 2025 █ BY GLORIA HARRY BEATTY [email protected] Felda must ensure oil palm industry does not share fate of rubber: Johari KUALA LUMPUR: The Federal Land Development Authority (Felda) has an important role in ensuring the sustainability of Malaysia’s oil palm industry so that the fate that befell the country’s rubber industry will not be repeated here, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said. He said Felda, being the largest owner of plantation land in the country with 800,000 hectares (ha), needs to fully utilise its strength by increasing production and focusing on the downstream sector. “Try to imagine. If we are not focused on the downstream industry for the next 15 to 30 years, the palm oil industry will go down the same path as the rubber industry. I don’t want to see that. “We were the largest rubber producer in the world at one time. Today, we are the main producer of rubber products but we import natural rubber from Vietnam and Thailand because we do not have enough of it. The strange thing is, we have 420,000ha of rubber trees belonging to 290,000 smallholders,“ he said in his keynote speech at the Felda 2024 Symposium here. Malaysia produced 19.5 million tonnes of palm oil in 2013 while Indonesia produced 26 million tonnes. Malaysia’s production dropped to 18.5 million in 2023 while Indonesia’s grew its output to 46.5 million, he said. Johari said Indonesia uses half of it for biodiesel production while Malaysia exports 15 million tonnes. He said the country’s main oil palm players produced an estimated 20 tonnes of fresh fruit bunches (FFB) on a per hectare basis and suggested Felda raise its production to more than its 2023 production of 16.49 tonnes per hectare. Therefore, he said, it is important for Felda to consolidate its land assets and complete its infrastructure as best as possible. As an example, if Felda were to produce 18 tonnes of FFB per hectare, its total yield would rise to 14.4 million FFB and the agency could become the largest producer with 2.8 million tonnes of crude palm oil, he said. “Imagine, if the price of palm oil is RM4,000 per tonne, and the estimated cost is RM3,000, we make a RM1,000 profit. Overall, we will make a profit of RM2.8 billion. “So, we have to learn from Felda’s success first, and we put together a strategy for the next 20 to 30 years. I believe the 800,000ha belonging to Felda, if we are good at it, the fifth and later generation will be proud to be part of Felda,“ said Johari. He also envisioned Felda settlers to organise their land into large clusters and to fully operate their assets to produce downstream products. – Bernama SC introduces Focused Scope Assessment approach to gatekeeping PETALING JAYA: The Securities Commission Malaysia (SC) yesterday introduced the Focused Scope Assessment (FSA) for new eligible Capital Market Intermediaries (CMI) and Recognised Market Operators (RMO). The FSA, which takes effect immediately via amendments to the Guidelines on Recognised Markets, is part of the regulator’s new gatekeeping approach in light of the capital market’s growing maturity and evolving regulatory standards. SC chairman Datuk Seri Dr Awang Adek Hussin said, “The fundraising and investment channels via the private market had been on a steady growth for micro, small and medium enterprises (MSME) to tap into funds for their expansion plans.” As at third-quarter 2023, he added the equity crowdfunding and peer-to-peer platforms have collectively raised approximately RM5.9 billion, benefitting almost 10,000 MSME. “This commitment to develop a more progressive and robust regulatory framework reflects the SC’s recognition of the crucial role these businesses play in driving the nation’s growth and development,” he added. The FSA evaluates the applicant’s operational and regulatory readiness in a more targeted and efficient manner. It aims to shorten the time to market for CMI and RMO to three months, where previously it could take more than six months. The FSA will also require applicants to have an independent party validating their business policies and procedures as part of their submission to the SC. This will give the applicant more control in ensuring efficiency and encouraging readiness to observe the requirements to undertake a regulated activity. Eligible Capital Market Intermediaries include advising on corporate finance; investment advice; fund management – boutique portfolio management; financial planning; venture capital and private equity; and digital asset custodian. There will be no amendment made to relevant guidelines applicable to CMI. Meanwhile, the SC continues its regulatory obligation in assessing applicants on critical areas including fit and properness, governance and key risk areas. smart industrial parks”. Amirudin said that collaborating with telcos as strategic partners could assist the digital transformation and accelerate growth in the state. The MoU between CelcomDigi and MPAJ involves the digital development of Hulu Kelang. With the 10-year partnership, both organisations will collaborate to explore and implement potential 5G technology solutions delivered on a solid fibre optic infrastructure, with an ambition to build a smart city ecosystem that will elevate the livelihoods of residents and accelerate the growth of businesses in Hulu Kelang. This collaboration is in support of MPAJ’s Smart City Framework, a plan developed in January 2022 to transform Ampang Jaya into a smart city with a focus on smart infrastructure, smart economy, smart community, smart environment and smart governance. CelcomDigi will oversee the coordination and implementation of the smart city-related solutions and technologies specifically in Hulu Kelang district, the pilot project area for the development of Ampang Jaya Smart City. The company will spearhead a sandbox that brings together an ecosystem of interested parties with smart city solutions such as innovators, entrepreneurs, startups, technology providers as well as device manufacturers, to test their products and services in a live environment and potentially implement these solutions in the Hulu Kelang smart city initiative. As part of its smart city initiatives to-date, MPAJ has installed closedcircuit television, Wi-Fi and smart junction solutions in several locations within MPAJ’s administrative area. Commenting on the collaboration, CelcomDigi CEO Datuk Mohamad Idham Nawawi said the partnership with MPAJ is targeted to build a feasible smart city infrastructure and ecosystem model. “We aim to leverage the best of local and global technology partnerships to develop this ecosystem, which hopefully can serve as a model to benefit other municipalities, with the net effect of having an interoperable network of smart city solutions in more areas across the country.” he added. In conjunction with the MoU, Amirudin launched MPAJ Convention Center and public park valued at RM33.6 million located in Taman Melawati, through a joint funding of allocation between Selangor state government through the State Economic Development Unit and Sime Darby Properties Bhd.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 14 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper Battersea Power Station one of world’s ‘Best Cultural Spots’ Battersea Power Station is also home to 565,000 sq ft of office space, including Apple’s new 500,000 sq ft UK headquarters, and 254 apartments. The iconic landmark sits at the heart of a new 42-acre riverside neighbourhood, which after completion would have created over 4,000 new homes, 3.5 million sq ft of mixed commercial space, 19 acres of public realm and 20,000 jobs. As part of the master plan, a new extension to the London Underground’s Northern Line opened in September 2021 providing Battersea Power Station with its own Zone 1 tube station bringing the neighbourhood within 15 minutes of the West End and the City. Battersea Project Holding Company chairman Tan Sri Jagan Sabapathy said, “In restoring Battersea Power Station, our hope was always to create a world-class destination that brought this iconic landmark into public use for the first time in history, to be enjoyed by the local community, Londoners and visitors from around the globe. To have received recognition by National Geographic in their ‘Best of the World’ list, and to witness our vision become a reality, is a source of enormous pride for the shareholders and all who have been involved in delivering this special project.” He added that they look forward to welcoming millions more visitors to Battersea Power Station in 2024 and beyond, as the neighbourhood continues to grow with new experiences, store openings and events for all to look forward to. Battersea Power Station has been announced as the official London fan zone for the Paris 2024 Olympics and Paralympics, building on The Battersea Games, which was launched in the summer of 2023. Opened in October 2022, nearly 40 years after it was decommissioned, more than 11.2 million people visited Battersea Power Station in 2023 to explore the landmark’s unique historic interiors. – PIC BY CHARLIE ROUND-TURNER oLondon’s iconic landmark redeveloped by Malaysian consortium makes it to National Geographic’s ‘Best of the World 2024’ series Hartalega records improved profit after tax for Q3 PETALING JAYA: Hartalega Holdings Bhd continues to showcase resilience, recording a higher profit after tax of RM23 million in its third quarter ended Dec 31, 2023, compared with a deficit in the previous financial year’s corresponding quarter. Profit before tax (PBT) improved to RM29 million for the quarter under review, while revenue came in at RM416 million. The improved performance for the quarter was attributable to lower raw material costs, reduced utilities expenses, enhanced production efficiency from higher capacity utilisation, and cost savings derived from the group’s ongoing operational rationalisation exercise, which involves the decommissioning of the Bestari Jaya facility. Additionally, the group recorded higher interest income and a reversal of a provision no longer required during the quarter. For the cumulative nine months ended Dec 31, 2023, the group posted profit before tax of RM20 million, mainly due to foreign exchange gains and higher interest income. Revenue for the nine-month period was RM1.3 billion. CEO Kuan Mun Leong (pic) said, “Despite continued challenges in the glove sector, we see positive indicators that the ongoing global oversupply is gradually being addressed through key capacity rationalisation efforts, thus easing some pressure on the excess supplies in the market. On the demand front, recent demand stabilisation after the notable decline in 2023 and the expected gradual return to pre-pandemic levels in the later part of 2024 or early 2025 also bodes well for prospects in the industry over the long term.” He added that the group will weather the tough conditions in the sector and take the opportunity to improve operational efficiency and heighten best practices in terms of fiscal management. “Our five-year strategic plan will be our blueprint during this challenging period and we are confident that this will enable the group to emerge as a stronger and more resilient company, with an innovative and agile approach to drive us forward,” said Kuan. Touch ‘n Go eWallet’s Soundbox protects merchants from fraud PETALING JAYA: TNG Digital Sdn Bhd has introduced the Touch ‘n Go eWallet Soundbox subscription models for merchants, starting at just RM10 per month. Merchants can now choose between the Soundbox set, priced at RM10 per month, or the Soundbox set with a SIM card, available for RM18 per month. CEO Alan Ni said, “As we serve over one million merchants nationwide, our goal is to provide them with products and services that enhance their business operations. In addition to ensuring the convenience of eWallet payments, we prioritise transaction security to protect our merchants from fraudulent activities.” With the recent increase in fraudulent payment incidents affecting SME merchants, Ni said they strongly encourage their merchants to acquire a Soundbox. Touch ‘n Go eWallet merchants can easily subscribe the Soundbox by selecting their preferred subscription plan from the Merchant Dashboard within Touch ‘n Go eWallet. UEM Sunrise partners Alliance Bank to offer ‘additional loan’ to house buyers KUALA LUMPUR: UEM Sunrise Bhd has partnered Alliance Bank Malaysia Bhd in the Alliance Home Complete financing programme, offering additional loan of up to 10% of the property value or a maximum of RM150,000. The property developer said in a statement that the financing solution is designed to empower homeowners to customise their living spaces for renovations and interior design, ensuring homeowners are “worry-free” of initial cash outlay. UEM Sunrise CEO Sufian Abdullah said the partnership offers alternatives beyond the conventional financing solutions as part of the company’s ongoing commitment to empower home buyers in not only reducing financial burdens, but make their homeownership journeys hassle-free and enjoyable. “The primary objective at UEM Sunrise is to create homes that cater to the diverse needs and aspirations of our customers. Our hope is for this creative collaboration with Alliance Bank to help our customers with the extra boost to help them settle in their dream homes better,” he said. UEM Sunrise said it is optimistic about the programme, envisaged to driving better take-up rates for the company’s participating projects including 2023’s key launches in the Klang Valley such as The MINH, The Connaught One and Serene Heights Intrika, as well as projects in Johor – Aspira Gardens, Aspira Parkhomes and Senadi Hills 2A. Alliance Bank group chief consumer banking officer Gan Pai Li said that with Alliance Home Complete financing, homeowners can gain immediate access to funds in realising their dream homes. “This exclusive offering is coupled with Alliance Bank’s mortgage products, to ensure a more streamlined and efficient application experience for homebuyers,” said Gan. – Bernama Wentel Engineering opens flat at 26 sen in debut on ACE Market KUALA LUMPUR: Wentel Engineering Holdings Bhd, a metal fabricator and assembler, made a flat debut on the ACE Market of Bursa Malaysia Securities yesterday at its initial public offering (IPO) price of 26 sen per share. It closed at 28 sen, 7.7% or 2 sen above the IPO price, on volume of 250.775 million shares. Executive director Wong Chun Wei said the debut signified the commitment of Wentel Engineering in leading the pathway to expand its manufacturing capacity and productivity. “The successful listing has marked a critical milestone for Wentel Engineering in becoming a listed entity on Bursa Malaysia. Under the leadership of our experienced senior management team, we are confident in projecting our trajectory toward a larger market opportunity across the core business segments we operate in. Similarly, Wentel Engineering remains committed to adopting environmental, social, and corporate governance practices in ensuring sustainable value creation to all our shareholders and stakeholders,” he said in a statement. Wentel Engineering raised RM71 million via an offering of 273.2 million new ordinary shares. Of the total proceeds, RM40 million has been allocated to part finance the construction of two blocks of single-storey factory (with doublestorey office) and two blocks of workers’ hostel, with an additional built-up area of approximately 254,381 sq. ft. Meanwhile, RM25 million of the proceeds will be utilised to part finance the purchase of new machinery and equipment for the new manufacturing plant and RM6 million has been allocated to cover the listing expenses. – Bernama PETALING JAYA: Battersea Power Station in London, the United Kingdom, has been named as one of the 20 “Best Cultural Spots” around the globe for exciting, meaningful and one-of-a-kind travel experiences in National Geographic’s Best of the World 2024 series. The annual Best of the World list is created, researched, reported and written in collaboration with National Geographic’s international editorial teams, who serve millions of readers through their magazines and websites around the world. The only UK destination to feature on the culture list, Battersea Power Station, the iconic former coal-fired power station in central London, has been restored and transformed into a mixed-use destination by a Malaysian consortium comprising Permodalan Nasional Bhd (PNB), Sime Darby Property, SP Setia and the Employees Provident Fund (EPF). Opened in October 2022, nearly 40 years after it was decommissioned, over 11.2 million people visited Battersea Power Station in 2023 to explore the landmark’s unique historic interiors and enjoy more than 140 shops, restaurants, cafes and leisure experiences that are now open across the riverside neighbourhood. Highlights include Lift 109, Battersea Power Station’s unique chimney lift experience, which ascended the building’s northwest chimney 21,500 times in 2023, offering visitors a 360- degree view of the London skyline.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 15 Education remains an important pillar of Malaysian society; it equips students with the skills needed to become productive and useful members of society. We invite you to showcase the best of education and the difference your institution has brought to the education landscape. Education matters so join us in 2024! Contact us now for special deals on digital, video and print advertising. Malaysian Paper 03-7784 6688 [email protected] Isuzu tops for 10th year running KUALA LUMPUR: Isuzu Malaysia has recorded another year of stellar performance marked by the highest truck sales among other brands in the market for 2023. This achievement has secured Isuzu the No. 1 spot for overall truck brand for the 10th consecutive year and light-duty truck brand for the 14th consecutive year in Malaysia. The continuation of Isuzu’s market-leading position was cemented by a total combined retail sales of 7,209 units including light, medium and heavy-duty trucks for last year, which represents 44.9% of Malaysia total trucks segment sales figures. Meanwhile, its light-duty truck segment registered a sale of 6,864 units, which is the highest light duty truck sales in Malaysia. CEO Shunsuke Okazoe said, “We are truly honoured to have achieved this remarkable success of being the top-selling truck brand in Malaysia once again. Attaining oCommercial vehicle maker retains title as Malaysia’s No. 1 selling truck brand more than a decade-long of this success has certainly surpassed our expectations.” “At the same time, we are truly thrilled to acknowledge the fact that the continuity of our marketleading position strongly demonstrates Isuzu Malaysia’s commitment in offering the widest and advanced range of trucks for our customers throughout the changing industry landscape.” Registering a strong growth of 2.7% compared to the previous financial year, this milestone indicates a continuous progress for Isuzu Malaysia and solidifies its position as a leading player in the country’s commercial vehicle industry. “The recovery of the economy and supply chain have led to the rebound of Malaysia’s commercial vehicle market especially in the light-duty segment. Our growth rate in truck sales over the years have recorded stable increase as we continuously commit to align our strategy with the broader industry trends and maximise our resources to help our customers advance in their logistics operations. “This positive performance underlines our sustained and robust presence in the market,” added Okazoe. On top of Isuzu’s sturdy sales performance in the light-duty segment, the company also attained a positive combined sales increment of 11% in the mediumduty, heavy duty & prime mover segment in 2023. Isuzu Malaysia’s success has also been further emphasised by the implementation of its corporate initiative that oversaw the upgrading and revamping of several dealership outlets in bustling locations including Ipoh, Kuching, Kluang, Temerloh and Seremban throughout last year to offer visitors and customers a brand-new retail experience. Okazoe said “Isuzu’s dealership network, which is the largest from a truck brand with 59 centers spread across every state and at strategic locations in Malaysia, is the backbone of our operations. Our customers rely on our dealership outlets for both sales and after-sales support. As such, we look forward to further extending our reach with the opening of additional new showrooms which we are planning for this year.” Auto Bavaria partners SDRAC-Hertz for EV car rentals KUALA LUMPUR: Sime Darby Auto Bavaria (SDAB), the largest official distributor of BMW vehicles in Malaysia has partnered with Sime Darby RentA-Car (SDRAC)-Hertz Malaysia, a leader in the car rental industry to offer Malaysians electric vehicle (EV) driving experience, ushering in a new era of e-mobility in rental services. In celebration of the collaboration and the upcoming Chinese New Year festival, an exclusive rental offer has been designed for electric BMW iX with introductory rental prices starting at RM550 per day and RM5,500 per month. Auto Bavaria managing director Vi Thim Juan said, “Auto Bavaria is fully committed to pioneering the utilisation of EVs in Malaysia. This time around, we are leveraging the opportunity to give Malaysians a chance to try our BMW iX for unmatched style and uniqueness that is aligned with the latest trends in EV technology. Together with Hertz Malaysia, we are creating a robust ecosystem that further supports the growing adoption of EV. BMW iX is the perfect model to offer as it garners the highest deliverable within the BMW EV segment last year. We encourage everyone to take advantage of this festive rental offer for a whole new elevated driving experience.” Meanwhile, SDRAC managing director Harun Mohd Joned said that their objective is to deliver optimal mobility solutions to their business partner SDAB, and provide Hertz Malaysia rental customers with a truly modern and luxurious electrified experience. “This collaboration not only allows our customers to travel stylishly in the latest BMW iX model but also enables them to explore our other extended rental services such as chauffeurs, provision of airport transfers, and even personalised arrangements for corporate functions as well as private events,” he added. DKSH wins Best FMCG Distributor at 2023 TGE awards show PETALING JAYA: DKSH, a leading partner for companies seeking to grow their businesses in Asia and beyond, recently received recognition as the Best FastMoving Consumer Goods (FMCG) Distribution Partner in Malaysia at The Global Economics (TGE) Awards 2023, which took place in Bangkok. DKSH was awarded as the leading growth partner for FMCG firms in Malaysia, boasting over a century of experience in the market. DKSH’s comprehensive market expansion services cover the entire value chain including importation, customs clearance, sales, marketing, merchandising, warehousing, distribution, invoicing, cash collection, and post-sales services. DKSH has actively contributed to the growth and transformation of its clients in the FMCG sector over the years. With unparalleled distribution capabilities, innovative solutions, and a customercentric approach, DKSH stands as a trailblazer, shaping the future of FMCG distribution in Malaysia. “As DKSH reaches its centennial milestone in 2023, being named the Best FMCG Distribution Partner in Malaysia by The Global Economics Awards is a momentous occasion. This achievement reflects the dedication and expertise of our staff over the past century, solidifying our legacy of excellence in the market,” said DKSH Consumer Goods Group sales operations, digitalisation & sustainability vice-president Reece Croucher. The TGE awards is a prestigious event that honors firms and individuals for their outstanding contributions to the regional and global economy. Melvyn Ho assumes key role at Gambit Custody KUALA LUMPUR: In a digital asset industry development, Gambit Custody has appointed Melvyn Ho as co-founder and COO to stay at the forefront of the digital asset custody landscape. Widely recognised for his pivotal role as the former deputy CEO of MX Global Exchange, one of the five licensed digital asset exchange, brings a wealth of expertise and regulatory compliance to his new leadership position. Ho’s transition to Gambit Custody marks a shift in the digital asset custody sphere. His reputation, cultivated during his tenure at MX Global Exchange, solidifies him as an industry luminary especially with him having a deep understanding of regulated digital assets and blockchain technology. Ho said, “I see significant opportunities in this space as regulators worldwide strive to establish robust frameworks for user protection. Supporting innovations that foster resilient companies and blockchain projects is crucial for enhancing public confidence. However, it’s more important to emphasise that at the core of any innovation or user protection initiative is a secure storage environment of digital assets – which I believe Gambit is working towards.” Gambit Group CEO Datuk Clifford Hii attests to Ho’s experience in navigating regulatory frameworks within the digital asset space.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 16 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper Stocks in HK, Shanghai surge on rescue efforts “The news flash about President Xi talking with financial regulators about the stock market ... it’s also another signal that the president himself is taking this matter seriously,” said ANZ head of Asia research Khoon Goh. Also helping sentiment, China’s securities regulator said it would suspend brokerages from borrowing shares for lending and cap the size of so-called securities refinancing, as part of further efforts to curb short-selling. Shanghai’s CSI300 jumped 3.5%%, its biggest one-day percentage gain since 2022, while Hong Kong’s Hang Seng Index rose 4%, its most in a day in six months. “The signals from authorities are very clear, they want to prevent the markets from falling further,” said SMBC economist Ryota Abe. “These kind of measures were needed to support the investors’ sentiment, so the initial reactions were all positive. However, as long as markets have fundamental concerns on the real economy, the slew of announcements will remain effective only in the short term.” The gains in China also helped European shares higher, with the STOXX 600 benchmark up 0.26% holding near last week’s two-year high. In the United States, Nasdaq futures rose 0.3% while S&P 500 futures edged 0.1% higher. In currencies, the Australian dollar jumped as much as 0.6% after the country’s central bank retained a tightening bias at the conclusion of a policy meeting and warned against imminent rate cuts, pushing market timing of a first easing to later in the year. Elsewhere, the dollar hovered near a three-month high against its major peers. The greenback was buoyed by the prospect of higher-for-longer US policy rates. Fed expectations remain the main driver of market moves at present. Data on Monday showed the American services sector growth picked up last month as new orders increased and employment rebounded, adding to growing doubts about the slew of Fed rate cuts priced in for this year, which had already been dialled back in the wake of Friday’s blockbuster US jobs report. Benchmark 10 year US Treasury yields rose around 30 basis points across Friday and Monday, their biggest two-day gain in 18 months, though were down a couple of basis points at 4.150% yesterday. Market pricing shows roughly 115 basis points of easing by the Fed this year, down from over 150 bps at the end of last year. – Reuters A shop selling elephant print clothing at Icon Siam shopping mall in Bangkok. – AFPPIC oReported meeting between Xi and financial regulators buoys sentiment Japan can retain deflation-fighting mandate: Official TOKYO: Japan can retain its decade-old blueprint focusing on efforts to beat deflation even if the central bank were to phase out its massive stimulus with an end to negative interest rates, said the government’s chief economist Tomoko Hayashi. Under pressure by then-Prime Minister Shinzo Abe to take bolder steps to beat deflation, the Bank of Japan (BOJ) signed a joint statement with the government in 2013 and committed itself to achieve its 2% inflation target “at the earliest date possible”. The pledge has served as the backbone of former BOJ governor Haruhiko Kuroda’s radical monetary stimulus and justification for keeping Japan’s interest rates ultra-low. Some analysts say the statement has become out of sync as inflation has stayed above 2% for well over a year, prodding the BOJ to contemplate a near-term end to its negative rate policy. Hayashi countered the view, saying that any such shift in BOJ policy would not alter the importance of its 2% inflation target, and the need for the government and central bank to coordinate policies to avert a return to deflation. “The importance of this statement, which called for the need to end deflation and achieve sustainable growth, will not change,” Hayashi told Reuters in an interview. “The current framework, under which the BOJ guides monetary policy with the aim of achieving its 2% inflation target, is something very important for the government and the public.” Hayashi was involved in the drafting of the joint statement as a senior Cabinet Office official. As director-general of its Economic Research Bureau, she currently briefs Prime Minister Fumio Kishida regularly on economic developments. Revising the statement, a move considered by some in the government last year, could affect BOJ decisions by re-defining its role and that of the government, and policy priorities. Shortly after Kishida appointed Kazuo Ueda as BOJ governor last year, the two said they had no plan to amend the joint statement for the time being. When asked about the statement, Kishida told Parliament yesterday the government and BOJ must “always communicate closely” about the roles they must play in revitalising the economy. “The government is taking steps to end deflation and achieve structural, stable wage rises accompanied by moderate inflation, so that a virtuous economic cycle is revived,” Kishida said. “I hope the BOJ takes the government’s economic policy into account in making monetary policy decisions.” – Reuters Thailand orders close watch on cheap ‘elephant pants’ imports BANGKOK: Thailand ordered its ports yesterday to keep a close watch out for rogue “elephant pants” being imported to the kingdom, as Bangkok trumpeted its copyright claim to the popular pachyderm print. The thin cotton trousers have long been a staple of European backpackers travelling through Southeast Asia. In recent months, they have become an unexpected hit with young Thais. But a jumbo influx of cheap Chinese-made pants has sparked concern over foreign imports edging out local manufacturers, and caught officials’ attention. “We have ordered the surveillance of elephant pants in all ports,” Deputy Prime Minister Phumtham Wechayachai told reporters yesterday. Phumtham, who is also commerce minister, said the elephant design that stomps across the ubiquitous trousers was copyrighted. “If we allow foreign producers to produce it, it might impact the local Thai products,” he said, warning of the inferior quality of some imports. “Thai products are standardised. Some (imported) products are easily torn after using them a couple of times,” he said. While the pants are sold from market stalls for as little as 150 baht (RM19), high-end retailers have also picked up on the trend and some flog high-fashion designs for as much as 1,000 baht. Phumtham’s remarks come after Thai Prime Minister Srettha Thavisin was asked about the cheap Chinese-made pants dominating the local market. “This is nothing new in doing business. Where there is an opportunity, there are opportunists,” the premier told reporters. “If we do not act fast, we will lose the opportunity, like have done before on several other things.”– AFP Nintendo lifts net profit forecast on weak yen TOKYO: Game giant Nintendo raised its annual net profit forecast yesterday, saying the weak yen and steady sales of the Switch console, now in its seventh year, would boost earnings. Sales grew in the first three quarters for major releases including the new Zelda game, the company said, while the Super Mario movie helped sell games from the Mario franchise. Nintendo now expects net profit of ¥440 billion (RM14 billion) in the current financial year, up from its previously announced forecast of ¥420 billion. “This fiscal year is the seventh year since the launch of Nintendo Switch, but sell-through has remained steady and there are more annual playing users than ever before,” Nintendo said. The Switch, both a handheld and TV-compatible device, became a must-have distraction among all age groups during the Covid pandemic, but buzz around the gadget is slowly fading. The firm sold 13.74 million Switch consoles in April-December 2023, down 7.8% year-on-year. Speculation is rife that Nintendo will soon announce a new console to replace the Switch, although the company has so far remained tight-lipped about its plans. Sam Naji, director of video game analytics firm SJN Insights, said an announcement could come this summer, with the launch most likely in November to capitalise on Christmas sales. “They have to get the timing right because they’re conscious of the fact that the minute they announce it, sales for the (existing) Switch will probably collapse, or at least go down significantly.” Because the Switch is designed to satisfy two markets – the older generation who play it as a console, and younger gamers who use it as a handheld device – it will be challenging to come up with a new product, Naji said. “Nintendo always surprises us, but I don’t see how you can improve on this. “I wouldn’t be surprised if it’s basically a beefed up version of the Switch with more memory or a stronger chip. Nintendo’s net profit in the first three quarters rose 18% on-year to ¥408 billion. The weak yen, which inflates profits for Japanese exporters, had a positive impact on net sales, it said. – AFP SINGAPORE: World share indices rose yesterday, boosted by a sharp rise in Chinese stocks as Beijing ramped up efforts to put a floor under its slumping market, while government bond yields in the US dipped slightly after two days of large increases. A slew of announcements from the securities regulator, a reported meeting between President Xi Jinping and financial regulators to discuss the stock market, and state fund Central Huijin Investment saying it has expanded its scope of investment in exchange-traded funds, highlighted the urgency with which China authorities are trying to stem heavy losses in its equities. China’s blue-chip index plunged to a five-year low last week on the back of the country’s ailing economy, which had prompted state-backed investors, dubbed the “national team”, to step up their buying of blue-chip stock tracking index funds to support the market.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 17 Eight tech firms vow to build more ethical AI LJUBLJANA: Eight global technology companies including Microsoft and Mastercard on Monday pledged at a forum in Slovenia to build “more ethical” AI in accordance with Unesco’s framework of principles. The deal comes after Unesco in 2021 adopted its Recommendation on the Ethics of Artificial Intelligence, which is based on “the promotion and protection of human rights, human dignity, and ensuring diversity and inclusiveness”. The other six signatory firms were GSMA, the Lenovo Group, INNIT, LG AI Research, Salesforce and Telefonica. The companies agreed to integrate the values and principles of Unesco’s 2021 framework “when designing and deploying AI systems”, according to a statement. The deal obliges the signatories to “guarantee human rights in the design, development, purchase, sale, and use of AI”. It also calls on them to carry out due diligence in a bid to “meet safety standards and identify the adverse effects of AI” while aiming to prevent and mitigate them. “This alliance of the public and private sectors is critical to building AI for the common good,“ Unesco chief Audrey Azoulay said in a statement. Following the 2021 ethical framework on AI use, “today, we are taking another major step by obtaining the same concrete commitment from global tech companies“, she added. Monday’s agreement between the UN body and the eight technology companies was signed in the Slovenian city of Kranj at the second Unesco Global Forum on AI. While the EU lacks powerful AI companies, the bloc has recently stepped up the pace of regulating the technology in response to rapid advances. – AFP UK pension age may have to rise to 71: Study LONDON: UK workers may have to wait until 71 to access a state pension because of an ageing population, a think tank said on Monday. State workers in the UK currently are eligible for pension from the age of 66, though this will rise to 67 from 2026 and to 68 by 2044. International Longevity Centre UK on Monday forecast this could hit 71 from 2050. “In the UK, state pension age would need to be 70 or 71 compared with 66 now to maintain the status quo of the constant number of workers per state pensioner,” according to the report which added this was an issue affecting countries worldwide. “However, if instead we define the UK’s working adult populations as 20 to 64 years, to account for time spent in full time education, the state pension age might need to hit age 70-plus as early as 2040.” The study noted that people are facing ill health earlier, meaning workers are retiring long before they reach state-pension age. In turn, the government receives less tax to fund the pensions, it added. By comparison, in France the state pension age last year increased to 64 from 62, sparking mass protests throughout the country. – AFP LONDON: The trial of an alleged bitcoin creator opened in London on Monday, seeking to determine whether an Australian computer scientist invented the world’s most popular cryptocurrency. Craig Wright, 53, says he is Satoshi Nakamoto, the pseudonym of bitcoin’s creator and author of a white paper that introduced the cryptocurrency to the world in 2008. Wearing a striped suit, Wright sat impassive in court on Monday as he listened to the outline of the case against him. The Crypto Open Patent Alliance (Copa), a non-profit organisation set up to keep cryptocurrency technology free from patents, is suing Wright over his claims first made in 2016. The trial at London’s High Court, presided over by judge James Mellor, is expected to last until mid-March. “Over a period of nearly 10 years ... (Wright had) the strongest incentive to prove he is Satoshi Nakamoto – but single handedly failed,” said Copa lawyer Jonathan Hough in opening remarks. Documents provided by Wright were not written in the same software code as the original 2008 white paper, according to Hough. “Copa’s case is, simply, that Dr Wright’s claim to be Satoshi is a lie, founded on an elaborate false narrative and backed by forgery of documents on an industrial scale,” the lawyer added in a written submission. “As his false documents and inconsistencies have been exposed, he has resorted to further forgery and ever more implausible excuses.” Copa wants the High Court to rule that Wright, who is expected to face questioning later this week, is not Satoshi. oCrypto alliance accuses Australian computer scientist of lying The programmer describes himself as “Creator of Bitcoin” on the social media platform X. “I conceived bitcoin, and I unveiled it to the world,” he wrote last month on X, formerly known as Twitter. In its argument, Wright’s legal team said its client “has the required skills and knowledge” to have created the bitcoin system. It rejected claims of forged documents, saying that “metadata anomalies” identified by experts “are explained (and caused) by his complex computer environment and working practices, which involved creating, storing and working on files in a shared and collaborative environment”. Wright, who on his website describes himself as a businessman, has been involved in a number of lawsuits brought by himself but this time around is being asked to defend himself. Copa brings together heavyweights in the industry, including cryptocurrency platform Coinbase and Block, which specialises in digital payments. It accuses Wright, nicknamed “Faketoshi” by his detractors, of lying about his identity and of forging and manipulating documents presented to try to prove his claims. The outcome of the case could determine that of another pitting the computer scientist against 26 developers – including Coinbase – for allegedly infringing upon his intellectual property rights. – AFP Snap lays off 10% of staff to ‘reduce hierarchy’ SAN FRANCISCO: Social media company Snap, which runs the youth-focused Snapchat platform, said on Monday it was laying off about 10% of its staff, joining a wave of job cuts in the tech sector. One day before it was due to announce its latest quarterly earnings, the company said that “approximately” 10% of its global staff would be let go. “We are reorganising our team to reduce hierarchy and promote in-person collaboration,” a Snap spokesman said. “We are focused on supporting our departing team members and we are very grateful for their hard work and many contributions to Snap.” The company had slightly more than 5,300 employees at the start of November last year, the company said. Snap had previously cut 20% of its staff in 2022. In recent years, the company has been at pains to compete for ad revenue against Meta’s Instagram, Google-owned YouTube and TikTok. After its launch in 2011, Snapchat became a hit, particularly with young smartphone users, by letting people share moments in the form of photos or videos in messages that self-destruct after being viewed. It also innovated with the use of filters for shared content, but an expansion into hardware such as drones and eyeglasses has failed to gain traction. Snap’s share price is displayed on the floor of the New York Stock Exchange. – AFPPIC According to website layoffs.ai, which tracks the industry, so far 32,000 jobs have been lost since Jan 1 in the tech sector. The cuts are not on the same scale as late 2022 and early last year when tech companies got rid of hundreds of thousands. That was blowback from the hiring frenzy during the pandemic, when companies ramped up employee counts as everyday life turned online. – AFP Trial opens into bitcoin ‘inventor’ claims Wright arriving at the High Court in London. – AFPPIC
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 18 BP woos investors with share buybacks LONDON: BP reported yesterday fourth-quarter earnings of US$3 billion (RM14.3 billion), exceeding forecasts thanks to strong gas trading, as the energy company increased the pace of its share repurchases. The quarterly results lifted the energy giant’s 2023 profit to US$13.8 billion, a 50% drop from a year earlier as oil and gas prices cooled and refining profit margins weakened. The strong quarterly profit will come as a relief to CEO Murray Auchincloss after the company had substantially missed forecasts in the previous two quarters. BP maintained its dividend at 7.27 cents per share and increased the rate of its share buyback programme to US$1.75 billion over the next three months from US$1.5 billion in the previous three months. The company said it was committed to repurchasing US$3.5 billion of shares in the first half of this year. BP’s fourth-quarter underlying replacement cost profit, the company’s definition of net income, reached US$2.99 billion, exceeding forecasts of US$2.77 billion in a company-provided survey of analysts. That compared with a US$3.3 billion profit in the third quarter and US$4.8 billion a year earlier. BP said the quarterly results reflected strong gas trading results and higher oil and gas prices which were nevertheless offset by “significantly lower” refining margins, weak oil trading and exploration impairments. – Reuters Caterpillar profit jumps on robust demand for mining equipment NEW YORK: Caterpillar reported a double-digit increase in operating profit on Monday, beating Wall Street estimates as mining equipment sales remained robust and higher prices across its machinery divisions helped margins. Shares for the Texas-based company were up 4.4% before the bell. Expenditure on heavy machinery held steady among commercial clients. Dealer inventories fell for the first time in four quarters, by US$900 million (RM4.3 billion), in an encouraging sign that spending remains resilient helped by US President Joe Biden’s US$1 trillion infrastructure law to upgrade roads, bridges and other transportation infrastructure. Analysts expect commercial construction, which accounts for 75% of Caterpillar’s business, to help safeguard the company’s margins this year despite an anticipated slowdown in global economic growth. “This stock has really become a barometer for not just the industrial economy but the global economy writ large – it has also been more resilient than expected,” said Oppenheimer & Co Inc executive director Kristen Owen. The company’s profit margins have been helped by a US$28.1 billion order backlog for construction equipment and demand from customers in oil and gas, power generation, rail and defense in the past year. Despite drilling at North American oil rigs A Caterpillar excavator in action at a construction site near New York Harbour. – REUTERSPIC Citi sees opportunity in US bank stocks NEW YORK: Investors should be aggressive in buying US banking stocks, as a recent upheaval in the industry has created “attractive entry points”, Citigroup analysts said on Monday, while upgrading their rating on Citizens Financial Group’s stock. Commercial real estate (CRE)-related concerns highlighted by New York Community Bancorp (NYCB) and Japan’s Aozora Bank last week do not shake the brokerage’s confidence in the broader group of banking stocks, it said. In CRE, the exposure to office loans has been the primary concern for investors, but such loans only make up for 1% to 4% of the total for banks under Citi’s coverage, Citi said. While profits have been hit in recent months as lenders build up capital buffers against potential loan losses tied to CRE, “the bulk of reserve build is behind”, Citi said. The banking industry was on shaky ground last week after NYCB, a major CRE lender in New York, reported a surprise quarterly loss and slashed its dividend. The turmoil also raised questions about other lenders’ exposure to CRE, in which borrowers have been under pressure because of elevated interest rates and high vacancies due to remote working. “We have maintained the view that investors should be playing offense rather than defense in the current environment,” Citi analysts wrote. The brokerage upgraded Citizens Financial’s stock to “buy” from “neutral”. Citizens and M&T Bank were among the biggest underperformers in the KBW Bank Index since NYCB’s earnings report. “We view now as a good opportunity to step in for a stock that has a lot of embedded growth due to significantly under-earning on net interest income that will course correct over next couple of years,” the brokerage said. It also reiterated its “buy” rating for M&T Bank stock, citing expectations that “positive commentary” from the bank’s management team will restore market confidence in its credit exposures. – Reuters showing signs of weakening, the industrial powerhouse is still benefiting from higher purchase volumes for its haul trucks and other mid- to large-sized mining equipment. Purchases of heavy machinery from construction and mining industries aided its full-year operating margin. Profit for the world’s largest construction company in the energy and transportation segment rose 21% from the year prior. Caterpillar’s earnings have also been shielded by effective cost controls and price hikes to fend off inflationary pressures. Its operating profit margin increased to 18.4% in the fourth quarter from 10.1% a year earlier. The company’s fourth-quarter profit rose to US$2.68 billion, or US$5.28 per share, topping consensus estimates of US$4.75 per share. Sales and revenue for the quarter ended Dec 31 were in line with analysts forecasts, rising to US$17.1 billion from US$16.6 billion. – Reuters McDonald’s posts rare sales miss NEW YORK: McDonald’s reported its first quarterly sales miss in nearly four years on Monday on weak sales growth at its international business division, partly due to the conflict in the Middle East, sending the company’s shares down about 4%. The burger giant is among several Western brands that have seen protests and boycott campaigns against them as the Israel-Hamas conflict rages. McDonald’s said the war had “meaningfully impacted” performance in some overseas markets in the fourth quarter. With the most pronounced hit in the Middle East, the company also saw an impact to business in countries such as Malaysia and Indonesia, as well as in France, CEO Chris Kempczinski said on a post-earnings call. “So long as this war is going on ... we’re not expecting to see any significant improvement (in these markets).” Comparable sales in McDonald’s International Developmental Licensed Markets segment rose 0.7% in the fourth quarter, widely missing estimates of 5.5% growth, according to LSEG data. The business accounted for 10% of McDonald’s total revenue last year. “The effects (of the war) on earnings durability would be our biggest concern ... it looks like this is going to be an issue that persists past the next quarter or maybe even two,” said Brian Mulberry, client portfolio manager at Zacks Investment Management, which holds McDonald’s shares. A McDonald’s is seen in the American state of Virginia. – AFPPIC oMiddle East hit weakens overseas business Starbucks last week also cut its annual sales forecast, partly due to a hit to sales and traffic at stores in the Middle East. Consumer spending in China, McDonald’s second-largest market, has also remained weak despite government support measures. While McDonald’s does not provide a breakup of sales in individual international markets, it noted industry-wide promotions picked up in China during the quarter as restaurants rush to revive flagging demand. McDonald’s US business also showed signs of weakness, particularly with low-income consumers reducing order sizes or trading down to cheaper items. That resulted in US comparable sales rising 4.3% in the quarter, just shy of estimates of a 4.4% rise. Still, McDonald’s reported an adjusted per-share profit of US$2.95, beating estimates of US$2.82. “It’s going to take some time for the results to bounce back (in the Middle East),” Stephens analyst Joshua Long said, but added he was still positive on McDonald’s stock as it is “one of the best positioned brands” to navigate a tricky macroenvironment. McDonald’s forecast 2024 operating margin to be in the mid-to-high 40% range and expects more than 1,600 net restaurant additions this year. It reported an operating margin of 45.7% for last year. Global same-store sales rose 3.4% in the quarter, missing estimates of a 4.9% rise, in what was its slowest sales growth in about three years. – Reuters
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | FEB 7, 2024 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [ Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shalll not be liable or responsible for any consequences resulting from usage of the information. WE expect GASMSIA’s Q4’23 net profit to come in at about RM88 million (+3% QoQ), bringing cumulative FY23F net profit to about RM367 million which will be in line with our forecast. We expect better sales volume sequentially by 4% in Q4’23 given the improved business condition especially the glove sector which declining sales trend had already bottomed in Q2’23 and reported first quarterly sales volume growth in Q3’23 by 4% QoQ to 7.5 million GJ after six quarters of declining sales trend while the glove makers also reported improved results in their latest quarterly results. To recap, sales volume in the glove sector always made up >30% of GASMSIA’s total sales volume (33% in FY19) in pre-Covid period and it hit record high of 38% in FY20. However, due to oversupply coupled with sharp decline in demand post pandemic, glove sector only made up to 20% of the group’s sales volume in Q3’23. The sharp decline was partly due to: (i) it losing one of its glove makers to its competitor after the gas market liberalisation in 2022, and (ii) lower demand after the glove makers lost their market share to international peers, especially the Chinese makers which expanded capacity during the pandemic period. On the other hand, Q4’23 gas selling price is also likely to improve further given the DOSM LNG price which rose 5% QoQ to RM43.96/mmbtu in Q4’23 from RM41.87/mmbtu in the preceding quarter. The gas selling price is based on Malaysia Reference Price (MRP) plus beta while MRP is the weighted-average price of LNG free-on-board exported from Malaysia as declared by DOSM. As such, the higher DOSM LNG should help to increase retail margin which is pegged to a percentage of gas selling price. Hence, we keep our forecasts, TP of RM3.33 and MARKET PERFORM call. WE recently visited Mero 3 FPSO at CIMC Raffles Shipyard in Yantai, China. We came back from the visit feeling more confident in MISC’s execution of Mero 3 and the group’s ability to bid for and complete future FPSO projects. To recap, Mero 3, formally named as FPSO Marechal Duque de Caxias on Jan 17, has processing capacity of 180k barrels of oil per day and 12mn cubic metres of natural gas per day as well as storage capacity of 1.45 million barrels of oil. Mero 3 is MISC’s first FPSO contract with an international client not linked to its majority shareholder Petronas. Mero 3 has completed all the prerequisites for sailaway, including audit by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), DNV engineering safety studies and customs declaration. In fact, Mero 3 is the first FPSO with no non-conformance to ANP’s audit at this stage. The clean audit result enables Mero 3 to head directly to its site in the Mero Field, about 180km offshore Rio de Janeiro in Libra Block, Brazil. Mero 3 will be the first FPSO to head directly to Brazil’s offshore oil field without stopping at Brazilian shallow waters for further audit by ANP. We understand that MISC is currently bidding for other FPSO projects in Brazil and West Africa. The group intends to cap construction of FPSO projects at one big and one small FPSO at any given time. According to management, Mero 3 qualifies as the highest tier of project in terms of complexity from Petrobas. Considering Mero 3’s clean audit results and exceptional safety profile, we believe MISC will be the top contender for future FPSO projects. Maintain BUY with an unchanged TP of RM8.00/share based on 15.5x CY24 EPS. 4Q23 passengers carried and load factor were counter seasonally flattish as we understand that demand in Oct and Nov 2023 was less than ideal. Moreover, we also understand that fares in October and November 2023 were counter seasonally flat. By December 2023 however, we understand that demand improved. Furthermore, we understand that efforts to raise fares after MYAirlines (Not Listed) suspended operations was truly felt in December 2023 after competitively priced fares in October and November 2023 ran their course. As at Dec 31, 2023 operating aircraft accounted for only 75% of its existing fleet (MIBG forecast: 100%). The slower-than-expected return to service of its remaining aircraft is due to the unavailability of engine spare parts. CAPITALA expects the remaining parked aircraft to be returned to service by mid this year but we assume that they will be returned to service by end this year instead. While disappointed, we believe that it is merely a question of “when” its entire fleet will be returned to service and not “if”. More details on CAPITALA’s plan to sell its shareholding in its 4 airlines to AirAsia X (AAX MK, BUY, CP: MYR1.67, TP: MYR3.40) ought to be known before month’s end. We also understand that more details on its plan to reverse takeover a SPAC and inject its AirAsia brand and aircraft leasing business into it ought to be known by April 30. With the 2 aforementioned transactions, CAPITALA is reasonably confident that it can narrow its negative shareholders’ equity position. Positively, more details on its PN17 regularisation plan ought to be known soon. Maintain BUY call with lower SOP-TP of MYR0.92 (-9%). FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.825 4.691 4.681 1 Australian Dollar 3.147 3.023 3.007 1 Brunei Dollar 3.584 3.48 3.472 1 Canadian Dollar 3.562 3.467 3.455 1 Euro 5.2 5.028 5.008 1 New Zealand Dollar 2.935 2.828 2.812 1 Singapore Dollar 3.584 3.48 3.472 1 Pound Sterling 6.07 5.883 5.863 1 Swiss Franc 5.535 5.409 5.394 100 Bangladesh Taka 4.483 4.191 3.991 100 Danish Krone 71.41 65.73 65.53 100 New Taiwan Dollar 16.4 N/A N/A 100 Chinese Renminbi 67.54 64.7 N/A 100 HongKong Dollar 62.39 59.3 59.1 100 Indian Rupee 5.91 5.55 5.35 100 Indonesian Rupiah 0.0318 0.0288 0.0238 100 Japanese Yen 3.254 3.151 3.141 100 Norwegian Krone 46.38 42.66 42.46 100 Pakistan Rupee 1.79 1.65 1.45 100 Philippines Peso 8.71 8.21 8.01 100 Saudi Arabian Riyal 130.21 123.61 123.41 100 South African Rand 26.25 23.71 23.51 100 Sri Lanka Rupee 1.59 1.46 1.26 100 Swedish Krone 46.98 42.79 42.59 100 Thailand Baht 14.09 12.51 12.11 100 Arab Emirates Dirham 133.02 126.15 125.95 100 Qatar Riyal 133.95 127.16 126.96 Exchange Rates Source: Malayan Banking Bhd/Bernama BAT (M) cautiously optimistic of improved financial results KUALA LUMPUR: For Q4’23, British American Tobacco (Malaysia) Bhd (BAT Malaysia) continued its strategy of growing its multicategory portfolio driven by investments into its New Category business which offers reduced-risk alternatives to adult smokers. Compared to the preceding quarter, the increase in combustible volume alongside the sale of vapour products during this quarter gave rise to a 4.8% increase in revenue from RM607 million to RM636 million. In view of the Group’s major launches of its Vuse products during this quarter, sizeable investments were incurred to build brand visibility and credentials. As a result, profit from operations reported a dip of 24.5% from RM85 million to RM64 million quarter on quarter as the group continues to charge forward into a true multicategory business. The legal industry combustible volumes improved by 4.3% quarter on quarter. Within this legal combustibles space, the group gained 0.3% market share within this quarter as compared with the preceding quarter contributed by the Group’s Value-For-Money brands which captured an additional 0.9% of the market share. Overall, the group’s strategic moves are paving the way for sustainable future growth. In line with this, the board of directors has declared a fourth interim dividend of 15 sen per ordinary share, amounting to RM42.8 million, payable on March 5, 2024 to shareholders. Looking ahead, the group is cautiously optimistic of achieving an improved financial performance, whilst they continue to invest and grow Vuse, the number one global vaping brand. The Group stands firm that harm reduction strategies are crucial in reducing the health impact of their business. Cloudpoint acquires data centre specialist Unique Central KUALA LUMPUR: Cloudpoint Technology Bhd, an information technology (IT) solutions provider in enterprise and data centre networking, cybersecurity, cloud services and software application solutions, has entered into a binding term sheet for the acquisition of 75% equity interest each in Unique Central Sdn Bhd and Uniqcen Sales & Services Sdn Bhd (collectively, the Unique Central Group). This strategic move positions Cloudpoint as a comprehensive and end-to-end solutions provider for data centre and cloud needs, allowing its existing and potential customers to source, build, and manage their infrastructure from a single provider. Unique Central Group has a proven track record as a data centre specialist, and it offers solutions in data centre infrastructure design, construction, integration, monitoring, and sustainability assessment. Subject to the execution of the final sales and purchase agreement, the purchase consideration is RM26.8 million to be satisfied in cash. Half of this amount will be paid in equal proportion annually throughout a three-year profit guarantee period, contingent upon the fulfillment of profit guarantee conditions. The vendors of the Unique Central Group will furnish a total profit guarantee of RM14.25 million for the next three years. Cloudpoint CEO WH Choong said, “Unique Central Group’s expertise synergises well with our data centre solutions and is highly complementary to our data networking segment. It expands our offerings and enables us to deliver end-to-end data centre solutions, including green and sustainable offerings. With our combined expertise as a group, we can offer customers a seamless experience with data centre solutions, hybrid and multicloud solutions and cybersecurity solutions all under one roof.” Capital A Bhd Buy. Target price: RM0.92 Source: Kenanga Research Source: Maybank Investment Bank Feb 6, 2024: RM3.27 Feb 6, 2024: RM0.70 Gas Malaysia Bhd Market Perform. Target price: RM3.33 Source: TA Securities Feb 6, 2024: RM7.34 MISC Bhd Buy. Target price: RM8.00
LYFE LYFE WEDNESDAY | FEB 7, 2024 22 90s fashion trends brings a sense of nostalgia and cultural pride to the festive season. Each trend contributes to a unique blend of tradition and modernity. E m b r a c i n g these fashion trends not only honours the past but also a l l o w s individuals to express t h e i r p e r s o n a l s t y l e d u r i n g this joyous occasion. packet is adding a festive and auspicious touch to outfits, reminding wearers of the joyous spirit of the Lunar New Year. Layered silhouettes and monochromatic wear Layered silhouettes and monochromatic styling were key elements of 90s fashion and they are now reclaiming their influence in Chinese New Year attire. The artful layering of different textures and lengths creates a visually appealing and dynamic look. Monochromatic outfits, especially in auspicious colours like red and gold, exude a sense of unity and celebration. The revival of these styling t e c h n i q u e s a l l o w s individuals to experiment with their wardrobes while paying homage to the iconic fashion of the era. As we celebrate the Chinese New Year, the revival of The charm of red packet accessories In the 90s, red packet accessories were a playful and popular trend during Chinese New Year celebrations. These accessories, often f e a t u r i n g m i n i a t u r e versions of the iconic red e n v e l o p e s e x c h a n g e d for good luck, are making a w h i m s i c a l comeback. F r o m earrings to h a n d b a g s , the charm of the red wardrobe with its rich texture and vibrant patterns. Brocade’s ability to flawlessly transition from casual to formal wear has solidified its place as a must-have in the revival of 90s fashion. Velvet revival Velvet, with its plush texture and luxurious appeal, was a favourite fabric in the 90s. This Chinese New Year, velvet is experiencing a revival, adding a touch of regal elegance to festive ensembles. Velvet dresses, blazers and even accessories are making a bold statement, providing a perfect blend of comfort and style. The resurgence of velvet brings forth a sense of nostalgia while allowing individuals to express their unique fashion sensibilities. /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Festive styles THE Chinese New Year is not all about feasting and collecting ang pows – it is also the perfect occasion to showcase style and fashion. As we step into the Year of the Dragon, there has been a delightful resurgence of 90s Chinese New Year fashion trends that are making a striking comeback. Here are seven iconic trends that have found their way back into festive wardrobes. Cheongsam chic The elegant and form-fitting cheongsam, also known as the qipao, is experiencing a renaissance. This traditional dress, characterised by its high collar and sleek silhouette, was a staple in the 90s. Today, fashionistas are embracing the timeless appeal of the cheongsam, combining classic designs with modern fabrics and patterns. The fusion of tradition and contemporary flair has made the cheongsam a symbol of sophistication during the festive season. Oversized sleeves and intricate embroidery In the 90s, elaborate embroidery and oversized sleeves were all the rage. Fast forward to the present day, these trends are making a glamorous return. Dresses and blouses adorned with intricate embroidery are stealing the spotlight, capturing the essence of Chinese craftsmanship. The exaggerated sleeves, reminiscent of traditional Chinese opera costumes, add a touch of drama and elegance to the festive wardrobe, bringing back the glamour of yesteryear. Mandarin collars and frog closures Mandarin collars and frog closures were iconic elements of 90s Chinese fashion and are now reclaiming its prominence. Blouses, jackets and even modern dresses are embracing the mandarin collar, infusing a sense of cultural identity into contemporary fashion. The distinctive frog closures, with its knotted fastenings, are adding a nostalgic touch to outfits, creating a harmonious blend of vintage and modern aesthetics. Brocade resurgence The opulence of brocade fabric was synonymous with 90s Chinese New Year celebrations. Today, the allure of brocade is making a powerful comeback. This luxurious, intricately woven fabric is being incorporated into dresses, jackets and accessories, elevating the f e s t i v e Cheongsam chic – ALI EXPRESS oCelebrating the Year of the Dragon with iconic 90s fashion revival █ BYTHASHINE SELVAKUMARAN Oversized sleeves – SHOPEE Red packet accessories – DTC WORLD Brocade – ALYSSANDRA Velvet – SHOPEE Layered silhouettes – LIFESTYLE ASIA Frog closures – PINTEREST
LYFE LYFE WEDNESDAY | FEB 7, 2024 23 Fashion fortunes PREPARING for a grand celebration of the Chinese New Year (CNY)? Well, it is a golden opportunity to infuse a burst of iconic chic into your fashion repertoire. Renowned brands have unveiled exclusive limited-edition bag collections, partially inspired by the majestic Year of the Dragon. Yes, the zodiac that symbolises good luck, power and vibes so strong they could probably lift your spirits (and your outfit) to a whole new level. If the only thing missing from your CNY ensemble is flamboyant arm candy, here are some of this season’s highlights. Here we unveil five utterly irresistible bag collections to take your CNY ensemble to a whole new level. Miu Miu A globally sought-after fashion label takes centre stage with its Wander matelasse nappa leather hobo bag, unveiled in a striking shade of red just in time for the CNY. Anticipated to achieve classic status, this Italian masterpiece boasts meticulously pleated leather and an elegant crescent-moon silhouette. It transcends the realm of mere accessories — it is a fashion essential for making a sincere style statement. Embrace the allure of this sinfully supple creation, keeping it close at hand to elevate your fashion prowess with a genuine touch of sophistication. Valentino Transitioning to another fashion powerhouse, Valentino joyously celebrates the festive season with its timeless and iconic Rosso shade — a vibrant red hue that holds immense significance in Chinese culture as a symbol of prosperity. The Maison unveils a stunning array of pieces The Revival design by Louis Vuitton has vibrant colours that honour Chinese traditions. – AMZREPX oExclusive bag collections for a stylish Chinese New Year █ BYHAZIQUE ZAIRILL Loewe’s Flamenco bags feature antique jade carving colours for the CNY 2024 collection. – LOEWE.COM from its coveted Garavani range, each meticulously reimagined in the auspicious Rosso hue to mark the arrival of the new year. Among the highlights are the Loco bucket bag, the VLogo moon mini bag and the VLogo tote, all exemplifying Valentino’s masterful craftsmanship and distinctive style. These pieces not only showcase the brand’s dedication to elegance but also pay homage to the cultural richness associated with the vibrant red colour, creating a perfect fusion of tradition and contemporary fashion. Fendi collab Another renowned Italian brand, Fendi, presents a noteworthy highlight in its high-fashion CNY capsule collections. This creative partnership skillfully combines elements from streetwear authority FRGMT and the beloved Pokemon franchise’s Dragonite, paying homage to the Chinese animal zodiac of 2024. At the forefront is the Baguette soft trunk, a meticulously structured, versatile bag adorned with a Dragonite patch on Fendi’s iconic FF Zucca print. This fusion of styles not only captures the spirit of the festive season but also showcases Fendi’s commitment to designs that are both innovative and young-at-heart. Loewe Loewe has departed from the conventional red and gold choices, opting for something distinctive. The Spanish brand has unveiled a jade collection, showcasing pendants that highlight the exceptional skills of master jade carvers Yin Xiaojin, Qiu Qijing and Chen Lei. Each of the five pendants stands as a limited-edition work of art. In celebration of the CNY, Loewe presents the Jade Collection, a fusion of high fashion and the rich heritage of Chinese jade carving craftsmanship. At the core of this collection is the Flamenco Purse Mini, now adorned with a specially carved jade piece. Referred to as the stone of heaven, jade symbolises affluence and enduring vitality. The pendants depict Valentino’s Rosso shade is a festive staple. – FACEBOOK/@VALENTINO The Wander matelasse nappa leather hobo bag by Miu Miu is ideal for the CNY celebration. – INSTAGRAM/@CECILIACHOI Italy’s Fendi has a standout in its Lunar CNY capsule collections this year. – FENDI Louis Vuitton At the Maison’s latest April/May 2024 menswear collection, Pharrell Williams, the newly appointed creative director, injects a breath of fresh air into the iconic Damier print. This revival involves a vibrant infusion of hues, paying homage to Chinese tradition, especially in its striking red form. For a heightened fashion experience, consider elevating your ensemble by pairing it with the Speedy Bandouliere 18. This addition not only makes a bold and eye-catching statement but also serves as the perfect companion for every reunion dinner. Undoubtedly, this collection represents more than just a contemporary reimagining of classic patterns — it stands as a testament to the seamless integration of cultural resonance into the everevolving realm of fashion. various flora nurtured in Chinese soil, carrying profound cultural significance. This collection not only represents a departure from tradition but also serves as a testament to the seamless combination of luxury and the artistry of Chinese jade carving.
LYFE LYFE WEDNESDAY | FEB 7, 2024 24 READ OUR HERE /thesun Malaysian Paper Razor’s edge AS ladies prepare for Chinese New Year with salon visits and shopping sprees, men can focus on a key area — maintaining well-groomed facial hair through a traditional wet shave. This method, which eschews electric or disposable razors, elevates grooming to an art form. For those aiming for a super close shave and smooth complexion, here is a quick guide to selecting the right gear. The right safety razor The obvious starting point would be getting the right safety razor handle or body. Choose one that feels right in your hands. Weight and handle design are key areas to look at when deciding on the type of razor handle. Generally, the heavier the razor, the better it does the job without the shaver having to exert any pressure. The handle should have a design that allows for a firm grip and does not slip out of one’s hands in slippery bathroom conditions. Safety razors with open “butterfly tops” are recommended for easy maintenance and cleaning. Keep it sharp The blades are essential to getting a good, clean shave and will also greatly determine the enjoyment you derive from a traditional wet shave. Choose the wrong one and you may end up with facial burns and unsightly cuts. Skin type, as well as stubble or beard thickness, will determine which blades work best. This is very much an area of individual preference; hence, some trial and error will be required. Order sampler packs that have a wide variety of blades to try. Once you have identified the perfect blade, you can buy jumbo packs for extra savings. Pre-wet shave preparation Men with thicker facial growth may need pre-wet shave prep. These include pre-shave oils and even beard softeners. These items help lift and soften beard hair while improving razor glide. It helps prevent irritation and razor burns by creating a protective layer on your skin. This makes for a more comfortable experience, especially for those with sensitive epidermis. Lest it be forgotten, a good clean shave can burn the skin, as anyone who has sat in a local Indian barber’s chair will testify. Lather up Here is the fun part. Choosing the right shaving brush to create a rich lather is very A good clean shave is the first step to looking sharp this Chinese New Year. - 123RF oA quick guide to traditional wet shaving this Chinese New Year █ BYR BALA Butterfly razor handles allow for easy cleaning and maintenance. - 123RF Having the right gear for a traditional wet shave can elevate this chore into treasured daily ritual. - 123RF Shavers can opt for synthetic brushes or those made from animal hairs to create the perfect lather. - 123RF There are a plethora of post-shave products including balms, splashes and gels to suit every skin type. - KENT OF INGLEWOOD much part of the wet shave ritual. There are synthetic types as well as those made using animal hairs. Those made with badger hair are usually at the top end of the price range due to the extreme softness of the follicles. However, there are plenty of synthetic options that also give a satisfying application of lather. Choosing one with an aesthetically pleasing handle is also part of the fun, as is getting one with a fancy stand and shave bowl. Hey, guys love to accessorise too. Soaps and creams There is a whole array of s h a v e soaps and creams for wet shavers to choose from. The great thing about the majority of these is that they are usually chemical-free, unlike massproduced foam sprays. Wet shavers will have a gala time browsing through countless specialist websites offering handmade products using only natural ingredients. Many will be scented and have natural ingredients to reduce post-shave irritation. Again, experiment with what works best for your skin type. Cooling down post-shave After a good clean shave, your skin will be somewhat smarter. There are a plethora of post-shave products to help reduce irritation. Wet shavers can choose a balm, gel or splash to reduce the inevitable burning sensation from a really close shave. Again, much will depend on skin type as well as personal preferences on scents. As a rough guide: For oily skin, a quick rinse with a quality soap post-shave will help with oily skin. Pick a natural skin toner — something with witch hazel or rose water. Shavers can use this between shaves too, to help balance the pH levels in your skin. For dry skin, pick a nourishing balm, since it will double down on restoring moisture levels while it shields, tones and soothes the skin. Note that this can also be used when not shaving. For combination skin, choose a light lotion that subtly tones and soothes the skin without suffocating your pores. For sensitive skin: Shavers with sensitive skin may want to avoid products that contain alcohol as they may feel abrasive post-shave. Try a gel or an aloe-rich product to cool and calm skin on contact. Emergency care for shaving cuts This is an essential and inexpensive piece of kit, especially for wet-shave beginners. Alum for shaving cuts has been used traditionally for a long time and is useful to have around. It is convenient, quick and super effective for healing the skin right after a shave. An alum block is a small block of potassium alum. To use it, you need to dampen it in water and then press it on your skin. It not only helps to stop bleeding, but it also soothes razor burns. It speaks volumes about a man who takes the time to execute a proper shave. So this Chinese New Year, look sharp by going “wet”.