CEOMorningBrief TUESDAY, MARCH 5, 2024 ISSUE 727/2024 theedgemalaysia.com BIG TECH-LED RALLY UNLIKE PAST BUBBLES, GOLDMAN STRATEGISTS SAY p19 SkyWorld Development Berhad (200601034211) HOME: Court quashes Daim and family’s bid to challenge MACC probe p2 Amir Hamzah pledges better communication before rolling out new tax measures p5 Berjaya’s Vincent Tan says Starbucks boycott unnecessary p8 Iskandar Waterfront outlines RM4.3 bil development projects in Johor in 10-year plan p9 WORLD: Singapore to boost wage threshold for expats, raise retirement age to 64 - report p23 Malaysia’s latest factory activity data points to further recovery — economists Report on Page 4. Airlines can charge carbon levy from April, says Loke Report on Page 6. SHUTTERSTOCK
TUESDAY MARCH 5, 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] Court quashes Daim and family’s bid to challenge MACC probe Malaysia willing to revisit MH370 case — Anwar KUALA LUMPUR (March 4): The High Court here has quashed an application by former finance minister Tun Daim Zainuddin, his wife Toh Puan Na’imah Abdul Khalid, and their children for a judicial review of the Malaysian Anti-Corruption Commission’s (MACC) investigation into their finances, which had led to the freezing of various accounts they own and the seizure of Ilham Tower. Judge Datuk Wan Ahmad Farid Wan Salleh ruled on Monday that the applicants had failed to establish that the investigation carried out by the MACC was mala fide or done in bad faith as they claimed. “In short, the threshold [for mala fide] is not crossed, since they (Daim and others) were not able to establish mala fide. The judicial review must fail,” the judge said, adding that Daim and his family had to prove or establish the existence of mala fide to challenge the criminal investigation. “Mere suspicion of mala fide or even allegations of intimidation are insufficient. On the facts affirmed, the applicants (Daim and family) have failed to establish mala fide on the part of the investigating officers of the MACC,” he said. The judge also said that “as a general rule”, the exercise of power by investigative authorities in the course of a criminal investigation is not up to a judicial review in a civil court, citing Order 53 of the Rules of Court 2012 that deals with judicial reviews. Daim, in the judicial review application, also claimed that the investigation against him was politically motivated by Prime MELBOURNE (March 4): Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is willing to reopen the investigation into the missing Malaysia Airlines flight MH370 should fresh and compelling evidence emerge. “On the 370, we have taken a position that if there is compelling case evidence that needs to be reopened, we will certainly do so. “I’m happy to reopen...it is an issue affecting the lives of people, and whatever needs to be done must be done,” he told a joint press conference with Australian Prime Minister Anthony Albanese here on Monday, in conHOME BY LESLEAN ARSHAD Bernama BY TIMOTHY ACHARIAM theedgemalaysia.com Minister Datuk Seri Anwar Ibrahim, who he said views him as a ‘political foe’. “My view is that allegations that the investigation is politically motivated, or that Datuk Seri Anwar Ibrahim considers him (Daim) a political foe, should be taken up in the criminal trial,” the judge said, adding that this is a judicial review, and parties must be careful in collateral challenges. A collateral challenge is a challenge of the validity of lawfulness of an act that is not directly in issue in the proceedings. Wan Ahmad also addressed Daim and his wife’s recent application to amend their judicial review application to include quashing the criminal charges against them for not abiding by the MACC’s notice to declare their assets. The judge said the attempt to quash the criminal charges in the Sessions Court should be made by way of a criminal application, and not by the way of a judicial review. In their application for a judicial review, Daim and his family also claimed that it was not proper to commence an investigation, as the alleged offences were stale, as all this occurred more than 20 years ago. However, Wan Ahmad disagreed with this notion, citing that the Latin maxim ‘nullum tempus occurit regi’ applies. “It simply means ‘time does not run against the crown’. The defence that the alleged offences are stale, so to speak, is unknown to our criminal law…the contention that an offence is stale can only be argued as an extenuating circumstance during plea mitigation upon conviction,” the judge said. He made no order as to costs after refusing to grant leave for a judicial review. On Jan 10, Daim, whose real name is Che Abdul Daim Zainuddin, together with Na’imah and their four children — Asnida, Md Wira, Muhammed Amir Zainuddin and Muhammed Amin Zainuddin — along with their company Ilham Tower Sdn Bhd, filed a judicial review application to halt the MACC’s investigation, and to quash the freezing of their accounts and the seizure of Ilham Tower. For a judicial review, which is normally done ex parte or only in the interest of one side, leave has to be gained before the full merits of the review can be heard to ensure that the application is not frivolous, vexatious, or an abuse of the court process. Senior federal counsels Liew Horng Bing and Shamsul Bolhassan represented the MACC, while Tan Sri Tommy Thomas, Rajesh Nagarajan and Sachpreetraj Singh Sohanpal represented Daim and his family. junction with his official visit to Australia. The press conference was held after the second Malaysia-Australia Annual Leaders’ Meeting, the first face-to-face meeting between Malaysian and Australian leaders and top government officials since its inception in 2021. March 8 marks the 10th anniversary of the disappearance of MH370. The aircraft carrying 239 people disappeared from the radar on March 8, 2014, while flying from Kuala Lumpur to Beijing. Albanese acknowledged the grief the families felt. “We understand that this is a very difficult time for people, because they weren’t given the certainty that would come with a successful search mission. It is very difficult,” Albanese said.
TUESDAY MARCH 5, 2024 3 THEEDGE CEO MORNING BRIEF
TUESDAY MARCH 5, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 4): Analysts maintained their positive outlooks for the FBM KLCI nearing or even surpassing the 1,600 mark, with potential catalysts still evident, despite the mixed responses to a slowing earnings season having negligible impact on overall sentiment. According to Kenanga Research, the earnings momentum of KLCI component stocks in the fourth quarter of 2023 (4Q2023) moderated from the previous quarter (3Q2023), with 14% beating consensus, 52% meeting expectations and 27% falling short. Against its projections, earnings momentum came in 72% above or in line with expectations, while 29% missed, according to the research house in a note on Monday. Overall, analysts’ 2024 earnings forecasts for the bellwether index saw minor adjustments. UOB Kay Hian raised its 2024 KLCI earnings growth forecast by 0.7 percentage points (ppt) to 17.2%, while Kenanga Research adjusted its target to 16.3% from 14.4%, largely due to low base effect, as actual financial year 2023 (FY2023) earnings came in slightly lower than its forecast. However, AmInvestment Bank cut its 2024 net profit growth forecast for the key index to 13.4% from 14.7% as 2023 earnings came in 1% above its expectations, while RHB Research cut its projections by 0.9 ppt to 11.2%. This compares to a consensus 2024 KLCI earnings forecast of 18.7%, according to a TA Research note on Monday. Nonetheless, analysts’ end-2024 KLCI forecasts remain largely untouched, as macro upside themes remain intact. On the trailing end of bullish market watchers, Kenanga retained its 1,605 target on an unchanged 15 times 2024 forecasted price-to-earnings (PER) ratio, in line with a historical PER range of 14-16 times post-economic reopening in 2021-2022. Meanwhile, CGS International appeared the most bullish, further encouraged by the key index’s gains in the year thus far, by maintaining its 1,755 end-2024 target. “Our bullishness on Malaysian equities is underpinned by our beliefs that three key headwinds (policy, currency, and earnings) that affect the market between May 2018 and July 2023 could collectively turn into tailwinds in 2024,” CGS International said in a note on Monday. “These are policy inconsistencies turning into ‘clarity and continuity’; ringgit weakness turning into strength and anaemic earnings trends turning into double-digit profit growth. “Overall, it seems the earnings tailwind is underway, while the policy momentum should pick up in the next few months. Ringgit appreciation, however, remains elusive, although we still see US inflation A mixed earnings season does little to sway analysts’ bullish views on KLCI KUALA LUMPUR (March 4): Malaysia’s factory activity is expected to recover in the months following latest data indicating the mildest downturn in the manufacturing sector in one and a half years, economists said. The seasonally adjusted Malaysia manufacturing purchasing managers index (PMI) rose to 49.5 in February, the highest level since September 2022. A reading above 50 indicates expansion in manufacturing activity, while below-50 points to contraction in the sector. “In the near term, Malaysia’s purchasing managers’ index is likely to mirror global trends” and may rise above the 50-point mark, said Public Investment Bank. The expected growth in the global semiconductor market “heralds a pivotal period for Malaysia’s manufacturing sector”, the research house noted. Shipments of electrical and electronic products, including semiconductors, typically account for over 40% of Malaysia’s total gross exports. Manufacturing activity in Malaysia has mostly lagged that of other factory hubs in Asia including South Korea and Taiwan which have since rebounded back into expansion, amid downturn of key trading partner China. Within Southeast Asia, Singapore and Vietnam have bounced into growth earlier. China’s manufacturing sector has been in contraction for the fifth consecutive month, with PMI falling to 49.1 in February, according to its National Bureau of Statistics. In contrast, the Caixin-Markit PMI ManuMalaysia’s latest factory activity data points to further recovery — economists facturing, which focuses more on smaller, private enterprises, edged up to 50.9. “The improving Malaysia’s manufacturing PMI signals for further expansionary external trade performance in the coming months,” said MIDF Amanah Investment Bank. Further, regional trade particularly Asia may stay on an “upward trajectory”, it noted. Going forward, MIDF said it is optimistic that Malaysia’s external trade would recover steadily this year with exports expanding 5.2% this year, underpinned by growing global demand and stable commodity prices. S&P Global, which compiles Malaysia’s PMI survey, said data suggests that both gross domestic product and manufacturing production are set to “trend upwards and improve modestly” in the first quarter of 2024. Manufacturing goods exports are expected to grow 5.5% this year following a 5.3% contraction in 2023, according to official forecasts. Broadly, the government projects the economic growth to pick up to 4.0%- 5.0% this year from 3.7% in 2023. BY JASON NG theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com Most analysts still see KLCI ending 2024 above 1,600 KLCI Research house Current Previous end-2024 target target CGS International 1,755 1,755 UOB Kay Hian 1,680 1,605 Public Investment 1,630 1,630 TA Securities 1,620 1,620 Kenanga 1,605 1,605 RHB Research 1,600 1,600 1,543.71* AmInvestment 1,550 1,545 Key: Upgraded Maintained *As at noon break on March 4, 2024 Source: Research notes CONTINUES ON PAGE 5
TUESDAY MARCH 5, 2024 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 4): The government will improve its communication with stakeholders before introducing new tax measures going forward, to avoid repetition of confusion arising from the hike in the service tax to 8% from 6% last week, said Second Finance Minister Datuk Seri Amir Hamzah Azizan. “Well, when you look at it, the service tax increase from 6% to 8% was introduced and announced around Budget 2024, and actually, there was a lot of consultation done with various groups to ensure that we figured out what are the key things. “At the same time, as anything that goes out, sometimes communications could be a little bit better, and we recognise that we should do a little bit more on that side,” he told reporters here after officiating the launching ceremony of special government guarantee schemes by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Syarikat Jaminan Kredit Perumahan Bhd (SJKP). Amir Hamzah reiterated that the revision of the service tax rate is good to enhance government revenue, and redistribute proceeds raised to help those in the lower end of society. “I know people talk a little bit about where we are putting it but, say, for something very, very basic last year, there were a lot of programmes to fix toilets for schools. We put back money also to help government servants who are staying in our quarters, [including the] police or armed forces, who were living in very bad conditions. We fixed their quarters along the way. “[This] sounds a bit strange, but actually, the toilets for schools are very important, because we all want our children to go to school in a better condition, so that their minds are about: ‘how do I improve myself, how do I get better education, and so on’, not worrying about ‘I don’t want to go to the toilet, because it is really smelly’ and all that,” he explained. “This redistribution based on an increase in revenue is actually very, very good, because it is actually about helping society at large,” he added. Public urged to flag profiteering after service tax hike Although Amir Hamzah said the increase in the service tax may induce profiteering activities, he was relieved that the Ministry of Domestic Trade and Cost of Living had pledged to step up its enforcement to curb Amir Hamzah pledges better communication before rolling out new tax measures unaffected businesses from exploiting the higher tax rate by raising prices. “I think a lot of Malaysians also can play their part to highlight where they feel that prices have been raised [but] not consistent with the increase in the service tax,” he said. Asked if the government would consider a more streamlined tax structure like the goods and services tax (GST), Amir Hamzah said it takes time to deliberate on a larger tax regime change, hence the government is focusing on the available tools accessible to it in seeking higher revenue. “I think the GST is the tax structure that we always continue to look at, and it will take some time before we review everything. But at this point of time, our focus is actually with the tools that we actually have. And the tools which we actually have are tools such as the SST (sales and service tax) and so on,” he said. Earlier on Monday, SJPP and SJKP announced that they had started receiving applications for Budget 2024 government guarantee schemes worth RM20 billion for micro, small and medium enterprises (MSMEs), and RM10 billion for first-time homebuyers without fixed income. Amir Hamzah updated that SJPP is providing guarantees to over 100,000 MSMEs for financing worth RM75 billion since its incorporation in 2009. “The NPL (non-performing loan) that was in SJPP back then, when we started, was a bit higher. At that time, it was a bit less than 7%. But now, because the scheme has gotten better, people understand that the credit control has gotten better — it is less than 2%. It is at a level where it can be self-sustained,” he said. Read also: MoF: Applications open for credit guarantee to help MSMEs, first-time home buyers without regular income BY CHESTER TAY theedgemalaysia.com coming off sharply by mid-year, leading to the US Federal Reserve to start the federal funds rates (FFR) cuts,” it added. Kenanga concurred, noting that with advanced economies’ central banks poised to cut rates from June 2024 — based on the latest FFR futures — emerging market (EM) assets will become attractive again given a lower risk-free return of development market assets. “Policy easing in advanced economies will also set in motion a more synchronised global economic recovery, fuelling an export boom in the largely still export-dependent EM economies,” the research house said. FROM PAGE 4 “We expect the local market to lift off in a way likened to a rocket propelled by three booster engines in succession,” it added. While AmInvestment Bank acknowledged that foreign equity flows poorly correlate with US dollar and ringgit exchange rates on a one- to 10-year scale, it noted that it has a negative correlation of -0.74 over the past 10 years and -0.67 over the last three years. “This could mean that a stronger ringgit towards the end of the year could mean a reversal in foreign equity inflows that has helped propel the KLCI over the past two months,” it said. Nonetheless, AmInvestment upgraded its base-case end-2024 KLCI forecast to 1,550 from 1,545 given that Malaysian equities offer potential ringgit appreciation, improving corporate earnings prospects, compelling dividend yields of 4% and low foreign shareholding low of 19.6%. AmInvestment also pegged a worst-case scenario forecast of the KLCI settling at 1,340 at end-2024, translating into a 2024 forecasted PER of 12.5 times at -1 standard deviation below the five-year median. The research house said its pessimistic forecast was due to a worst-case scenario of a global recession, new pandemic-driven lockdowns, more US rate hike surprises, bank failures and worsening geopolitical conflicts. Treasury secretary general Datuk Johan Mahmood Merican (left) and Second Finance Minister Datuk Seri Amir Hamzah Azizan. Amir Hamzah on Monday officiated the launching ceremony of special government guarantee schemes by Syarikat Jaminan Pembiayaan Perniagaan Bhd and Syarikat Jaminan Kredit Perumahan Bhd. SHAHRIN YAHYA/THE EDGE
tuesday march 5, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (March 4): The evaluation of the seven concept proposals that have been received from firms and consortia interested in the Kuala Lumpur-Singapore high-speed rail (HSR) project is expected to take two months to complete. The Ministry of Transport (MOT) said MyHSR Corp Sdn Bhd is still evaluating the concept proposals, and the results of the evaluation will be taken up for government approval to shortlist the consortia for the next process, namely the request for proposal. Through a reply published on the Parliament website on Monday, the ministry said MyHSR Corp had been given the responsibility to carry out the request for information process, which ended on Jan 15. It was replying to a question from Lim Lip Eng (Pakatan Harapan-Kepong), who wanted to know if the government would guarantee the loan for the project estimated to cost RM100 billion. The MOT said all interested firms/ consortiums had been informed that the government will not provide any loan guarantee for this project. The government intends for this project to be implemented through private fund investment, and without any injection of government funds, the ministry added. Responding to a question from Captain Azahari Hasan (Perikatan Nasional-Padang Rengas) regarding details of the construction of the five Light Rail Transit 3 (LRT3) stations that would be resumed, the ministry said the costing details had not yet been finalised. The MOT said the government is still fine-tuning the project, which was cancelled previously. An additional allocation of RM4.7 billion for the purpose of restoring the scope of the LRT3 project was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024. Evaluation of KL-Singapore HSR concept proposals to take two months, Parliament told SEPANG (March 4): Airlines can start charging the carbon levy once amendments to the Malaysian Aviation Commission (Code of Conduct) Regulations 2018 are finalised by the Malaysian Aviation Commision (Mavcom) in April, said Transport Minister Anthony Loke Siew Fook. He said the carbon levy is not collected by the government, but by airlines to offset carbon emissions. “Our policy is different from Singapore that makes it mandatory — we make it optional. It depends on airlines — either local or international airlines flying in and out of Kuala Lumpur — whether to impose that (the carbon levy),” he told reporters after launching AirAsia fixed fares for late-night flights between Peninsular Malaysia and Sabah and Sarawak, in conjunction with the upcoming Hari Raya Aidilfitri celebration. Loke said there is a need for a transparent mechanism to show how airlines spend the levy. On Feb 23, Loke was reported as saying the Ministry of Transport had reached an agreement in principle to allow airlines to impose additional fees to cover their carbon emissions. He said certain airlines would adopt the fee to purchase sustainable aviation fuel, while others would pay carbon credit to offset their carbon emissions. Loke said the carbon levy is an international obligation and applicable to all airlines, not only in Malaysia, to contribute towards the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia). Meanwhile, Capital A Bhd chief executive officer Tan Sri Tony Fernandes said the government and carbon offset companies are encouraged to set up projects in Malaysia or Asean to ensure a transparent process. Airlines can charge carbon levy from April, says Loke Bernama Bernama Bernama ‘Cabinet to discuss keeping service tax at 6% for domestic flights’ SEPANG (March 4): The proposal to retain the 6% service tax on domestic flights will be discussed in this week’s Cabinet meeting, said Transport Minister Anthony Loke Siew Fook. He said the Ministry of Transport will discuss the matter with the Ministry of Finance (MOF) since the tax issue falls under the MOF’s jurisdiction. “The service tax is applicable to air tickets. I will discuss with the MOF to see whether we can maintain that tax at 6% for domestic travels,” Loke told the media after launching AirAsia fixed fares in conjunction with Hari Raya Aidilfitri here on Monday. Loke said the matter will be brought up for discussion in the Cabinet meeting expected to be held on Friday. The service tax was increased to 8%, effective from March 1, compared to the previous 6%. However, the new rate is not applied to services for food and beverages, telecommunications and parking. The increase to 8% was announced in the tabling of Budget 2024 in October last year, as part of the government's efforts to increase the country’s financial resilience, while reducing the budget deficit. Meanwhile, Capital A Bhd chief executive officer Tan Sri Tony Fernandes said maintaining the service tax at 6% for domestic travels should be considered, as the industry had just recovered post Covid-19, and tourism also plays a big part in the country’s economy. He said the government should also look at maintenance, repair and overhaul (MRO) organisations, as it would become a huge business. He hopes the government would support local MRO organisations in their efforts to catch up with Singapore. “MRO [firms] can be a very big job creator in this part of the world. We hope that apart from the service tax, the government will look at MRO organisations that are big employers and contributors to gross domestic product,” Loke said. In conjunction with Aidilfitri, AirAsia is offering more than 22,000 seats at fixed low fares for late night flights between Peninsular Malaysia and Sabah and Sarawak. The fare is fixed at RM298 one way to Sarawak, while to Sabah, it is RM348 one way. Flights for the promotional fares can be booked from now until April 17 on the airasia.com website, or the AirAsia MOVE app.
TUESDAY MARCH 5, 2024 7 THEEDGE CEO MORNING BRIEF
TUESDAY MARCH 5, 2024 8 THEEDGE CEO MORNING BRIEF HOME Ge-Shen buys 40% in Local Assembly after LTKM scraps RTO with the EMS firm Berjaya’s Vincent Tan says Starbucks boycott unnecessary BY RACHEL CHEW theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com OKINAWA (March 4): Malaysian tycoon Tan Sri Vincent Tan said on Monday that the boycott of the local Starbucks coffee chain is “unnecessary”, as the US brand does not own any share in the Malaysian operations. Starbucks in Malaysia is operated by Berjaya Food Bhd, controlled by Berjaya Corp Bhd, which in turn was founded by Tan. The comment marks Tan’s first reaction to the public boycott following the Israel-Palestinian conflict. “We don’t even have one foreigner working in the head office or stores,” Tan said at a press conference for another event in Japan. “In the stores, 80% to 85% of employees are Muslim.” Starbucks, along with a few other global brands such as fast food chain McDonald’s, has been facing intense boycotts, due to their purported support or perceived link to Israel, amid the ongoing conflict in Gaza. Berjaya Food, which relies on Starbucks for some 90% of its revenue, has lost some 25% of its market value on Bursa Malaysia since Israel ramped up its deadly strikes in Palestine, following the Hamas attack on Oct 7. Starbucks Corp, based and listed in the US, has no shares in the coffee chain’s operations in Malaysia, Tan stressed. Still, there were signs that customers had returned to Starbucks, he noted. “I believe the trend reflects our upcoming third-quarter financial results,” Tan said. “Our (Berjaya Food’s) third-quarter results [are] expected to [be] better.” Berjaya Food sank into red for the second quarter ended Dec 31, 2023 (2QFY2024), with a net loss of RM42.58 million, against a net profit of RM35.49 million a year earlier, also partly hurt by a RM10.5 million one-off loss from the disposal of its entire equity interest in Jollibean Foods Pte Ltd. Revenue for the most recent quarter fell 38.19% to RM182.55 million, versus RM295.32 million for 2QFY2023, on lower sales because of the boycott. ”My message to our Malaysian friends [is that] there is no need to boycott. If you want to boycott, there are many things that we need to boycott, for example the iPhone and iPad,” he added. Read also: Berjaya Land breaks ground on Four Seasons Okinawa KUALA LUMPUR (March 4): Ge-Shen Corp Bhd, whose share price has jumped 144% year-to-date, plans to buy a 40% stake in electronics manufacturing services (EMS) firm Local Assembly Sdn Bhd for RM48 million cash, to be partly-funded via proceeds from a private placement. Ge-Shen has inked an agreement with Local Assembly’s co-founders Chai Voon Sun, Gurmakh Singh Ajmer Singh and Wee Thian Song for the stake buy. Chai owns 37.5% in Local Assembly, while Gurmakh has 22.5% and Wee owns 15%; Chin Hin Group Bhd executive chairman Datuk Seri Chiau Beng Teik’s 55%-owned Divine Inventions owns 20%, while Proven Venture Sdn Bhd holds the last 5%. This is not the first time the co-founders of little-known Local Assembly have been in talks with a public-listed company over a stake disposal. In October last year, egg producer LTKM Bhd scrapped its reverse takeover (RTO) of the EMS firm for RM336 million, to be satisfied via RM100 million cash and the issuance of 181.54 million new LTKM shares at RM1.30 apiece. The RTO, first proposed in April 2022, would have seen LTKM selling its chicken egg production business to become an EMS provider. The deal was mutually terminated with LTKM citing the parties’ contrasting business performance. Ge-Shen, meanwhile, said its investment into Local Assembly marks its move to diversify into EMS, which the plastic moulding and sheet metal stamping outfit said is in line with diversifying its income stream and diluting its business risk over a wider customer and industry base. It also expects the investment to complement its existing business, enabling cross-marketing of products to a broader clientele and drive synergistic value through shared technology know-hows. The deal comes with a guarantee from the sellers that Local Assembly would achieve an aggregate profit after tax (PAT) of at least RM24 million over the financial years ending Dec 31, 2024 (FY2024) and FY2025. Local Assembly logged a PAT of RM20.52 million in FY2022 on a revenue of RM131.78 million. Local Assembly is a manufacturer of electronic, electrical, and plastic injection moulded components, and a sub-contract assembler of electrical appliances and equipment. Ge-Shen is planning a private placement of up to 30% of its enlarged share base, from which it expects to raise at least RM84.46 mil or at most RM91.2 million, based on an illustrative issue price of RM2.31 per share, to fund the deal. Ge-Shen plans to use RM33.6 million of the proceeds to part-settle the RM48 million price tag for the 40% stake buy — the remaining RM14.4 million will be funded via bank borrowings — while the remainder of the proceeds will be used to repay existing borrowings and working capital. It said the deal is not a related party transaction, despite its executive director Lee Hai Peng being a common director in both companies, as Lee has no other interested relationships besides that. The deal is expected to be completed by the second half of 2024. Ge-Shen shares closed nine sen or 3.28% higher at RM2.83 on Monday, giving the company a market capitalisation of RM345.9 million. Malaysian tycoon Tan Sri Vincent Tan’s comment marks his first reaction to the public boycott following the Israel-Palestinian conflict. SHAHRIN YAHYA/THE EDGE
tuesday march 5, 2024 9 The E dge C E O m o rning brief home KUALA LUMPUR (March 4): CGS International Securities Malaysia Sdn Bhd (CGS MY) has appointed Tan Sri Shahril Ridza Ridzuan and former health minister Khairy Jamaluddin Abu Bakar as independent non-executive directors. “Whilst not mandatory to appoint independent directors to the board, CGS MY has chosen to adopt the recommended corporate governance best practices in the Malaysian Code on Corporate Governance to signify our commitment to the highest standards of corporate governance,” said chief executive officer Azizah Mohd Yatim in a statement on Monday. “With our recent change in ownership to become wholly owned by CGS International Holdings Ltd, we have new growth opportunities and can benefit from the credentials, expertise and network of these well-respected individuals to strengthen the competencies of our board,” she said. CGS International appoints Shahril Ridza, Khairy Jamaluddin as directors KUALA LUMPUR (March 4): Iskandar Waterfront City Bhd has unveiled its 10- year development plan comprising three projects in Johor Bahru, with an aggregate gross development value (GDV) of RM4.33 billion. According to its statement on Monday, the property developer’s 10-year development plan comprises the RM3.5 billion waterfront township Tebrau Bay, RM500 million mixed waterfront development Danga Rivera, and RM330 million mixeduse development project Danga Heights. Over the next five years, the first phase of the three key development projects, comprising an aggregate of 63 acres, is expected to generate a total GDV of RM1.8 billion, according to the company. Iskandar Waterfront said the 100-acre Tebrau Bay is a waterfront township development, which will commence with a 30-acre pilot phase. Meanwhile, Danga Heights is a 29.3-acre mixed-use development project focused on retail, which will include a branded hotel, office and serviced apartment. As for Danga Rivera, the project is a mixed waterfront development in Permas Jaya, which will feature shop offices, retail spaces, hotels and service suites. For the Danga Rivera project, Iskandar Waterfront said the company has inked a memorandum of understanding with Spain-based hotel company Meliá Hotels International SA for Iskandar Waterfront Iskandar Waterfront outlines RM4.3 bil development projects in Johor in 10-year plan by Izzul Ikram theedgemalaysia.com by Chester Tay theedgemalaysia.com CGS MY is a unit of China Galaxy Securities, a leading securities house in China, and CGS International Securities Pte. Ltd. In December last year, CIMB Group completed the disposal of its remaining 25.01% stake in CGS-CIMB Securities International Pte Ltd and 25% shareholdings in CGS-CIMB Holdings Sdn Bhd to CGS International, formerly known as China Galaxy International Financial Holdings Ltd. Shahril and Khairy will join six other board members in CGS MY, namely Carol Fong, Yuen Kwok Wai, Chan Yuen May, Azizah, Alan Inn Wei Loon, and Khairi Shahrin Arief Baki. “We are confident that the combined depth and diversity of our board, which includes both private and public representatives in areas of business, finance, investment, and policy, will create a robust, well-connected leadership that will bring the company towards its vision of being a world class and leading investment bank in Asia,” said Azizah. Shahril, who is also chairman of Axiata Group Bhd and Ekuinas Nasional Bhd, was formerly managing director for Khazanah Nasional Bhd and CEO for the Employees Provident Fund. Khairy has held several ministerial posts in the government, with the experience of heading the Ministry of Health and Ministry of Science, Technology, and Innovation during the Covid-19 pandemic, and the Ministry of Youth and Sports during the Najib administration. Khairy also co-founded and chaired a think tank called The Centre, and was a director of investment banking at ECM Libra Avenue Securities. to develop a hotel under the Meliá Hotels & Resorts brand. “The hotel will need to be designed, built, equipped and decorated in accordance with the standards of the Meliá Hotels & Resorts brand, with the aim of then being managed by Meliá Hotels International,” it said, adding that parties shall negotiate concerning a hotel management agreement. Iskandar Waterfront deputy chief executive officer Yap Meow Hin said the collaboration with Meliá Hotels International underscores the company’s commitment to excellence and its vision of transforming landscapes to enrich communities. “Overall, Iskandar Waterfront is confident in its ability to develop and leverage its extensive landbank, which is strategically located near mature areas and close to the Rapid Transit System (RTS) Link station and [the] Johor Bahru city centre,” Iskandar Waterfront said. Shares in Iskandar Waterfront ended half a sen or 0.68% lower at 73.5 sen on Monday, giving the group a market capitalisation of RM677.03 million. Former health minister Khairy Jamaluddin Abu Bakar and Tan Sri Shahril Ridza Ridzuan have been appointed independent non-executive directors of CGS International Securities Malaysia Sdn Bhd.
tuesday march 5, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (March 4): The persistent weakness of the Malaysian ringgit has underscored the need for robust structural reforms to enhance the country’s capabilities in foreign currency accumulation, according to the Malaysian Rating Corp Bhd (MARC). It said this in a statement after noting that the ringgit had “generally underperformed its regional counterparts against the [US] dollar”, even as its continued weakness against the greenback, which was seen in February, was partly due to the broad dollar strength amid the prospects of a higher-for-longer interest rate environment. It warned that the ringgit’s weakness, together with shifting interest rate trajectory in advanced economies, may lead to extended periods of volatility in the local market. At the time of writing, the ringgit was trading at 4.7225 against the US dollar after having recovered some after briefly slipping past 4.8 about two weeks ago — its weakest since hitting its all-time low of 4.8850 in 1998 following the Asian Financial Crisis. It has weakened nearly 3% against the dollar year-to-date, on top of the 4.3% drop in 2023, while Bank Negara Malaysia has repeatedly said that the ringgit’s level at present does not reflect Malaysia’s positive economic prospects, as it said it would step up engagements with government-linked companies and investors to encourage inflows. Meanwhile, MARC noted that the Malaysian Government Securities (MGS) market had moved in tandem with the rise in US Treasury yields following the market’s pushback against the earlier expectations of more aggressive Fed rate cuts amid positive US economic data. In particular, the local corporate bond market rallied in February, with yields of the high-rated bonds declining across all categories. “The rally in the local corporate bond market and the fund inflows observed in Ringgit’s weakness underscores need for robust reform — MARC KUALA LUMPUR (March 4): Tenaga Nasional Bhd guided that the prolonged outage of Manjung 4 power plant may lead to capacity revenue loss of RM400 million this year, prompting analysts to moderate their earnings growth forecasts. Further, its power generation unit may also experience reduction in the so-called capacity rate financing (CFR) — fixed payment to cover debt service — for some of its other power plants leading to lower revenue, Tenaga told analysts who attended its earnings briefing. “We fear that near-term earnings will remain affected by the power generation segment facing unscheduled downtime and stepdown in CRF,” said Hong Leong Investment Bank. The research house cut its earnings forecasts for Tenaga by 12% for the financial year 2024 (FY2024) and by 8% for FY2025, lowering its target price to RM10.80. Tenaga’s coal-fired 1,010-megawatt Manjung 4 plant has been on unplanned outage since December 2023 due to steam turbine trouble. For FY2023, Tenaga’s net profit fell 20.01% year-on-year to RM2.77 billion or 48 sen per share, from RM3.46 billion or 60.35 sen per share, partly due to the generation business which was affected by negative fuel margin and lower revenue from CRF stepdown. In FY2023, the power generation segment experienced a fuel margin loss of RM618.7 million, leading to a segment loss of RM526.8 million. In contrast, the segment achieved a fuel margin profit of Tenaga flags RM400 mil capacity payment loss to analysts by Hee En Qi theedgemalaysia.com the equity market suggest broadly positive investor sentiment. Along with the decline in corporate bond yields and increase in the MGS yields, the yield spread between these high-rated corporate bonds and MGS compressed for the month,” it said. The rating agency is expecting investment outlook in Malaysia to remain positive in 2024, as it kept its forecast that the country would chart a firmer GDP growth of 4.2%, on further recovery in the tourism and external sectors that will provide a much-needed boost to the services and manufacturing sectors. It expects inflation to rise to 3% in 2024, from 2.5% in 2023, due to the anticipated rollout of subsidy rationalisation, new tax measures, commodity price volatilities, and firmer domestic demand pressures. “In view of the upside risks to inflation, uncertain Fed interest rate trajectory, volatilities in the ringgit and ongoing geopolitical tensions, Bank Negara Malaysia will likely adopt a data-dependent approach and hold the overnight policy rate unchanged in its next Monetary Policy Committee meeting on March 7,” it added. Read also: Ringgit opens higher versus greenback ahead of BNM’s MPC meeting RM1.1 billion in FY2022, resulting in a profit of RM860.5 million. TA Securities noted that the Manjung 4 power plant is projected to resume operations by the end of 2024 at the earliest but could potentially be dragged into “early 2025”. The research house cut its FY2024 earnings forecast for Tenaga by 9%, which lowered its target price to RM12.40. The setback at Manjung 4 “would reduce the capacity income and increase the maintenance and repair costs for the plant”, TA Securities said. A majority of analysts nevertheless still recommended investors to buy the stock as the national electric utility will benefit from demand growth on the back of resilient economy. The company has a near monopoly in electricity distribution in a highly regulated market where the government closely manages a system of tariffs and subsidies to keep a lid on power prices. Of the 21 analysts covering the stock, 12 recommended “buy”, while eight have “hold” calls and one has “sell”. The 12-month median target price stood at RM12.17. Tenaga shares ended the day 10 sen or 0.9% lower at RM11.20, giving the group a market capitalisation of RM64.8 billion. by Syafiqah Salim theedgemalaysia.com the edge
tuesday march 5, 2024 11 The E dge C E O m o rning brief home New law on ‘kill switch’ takes into account action against negligent banks Analysts have mixed views on banks’ outlook despite January’s strong loan growth Malaysia’s first smart AI container port to be built in Port Dickson by Hee En Qi theedgemalaysia.com Bernama Bernama KUALA LUMPUR (March 4): January’s 5.7% loan growth in the banking system has beat expectations but analysts have held mixed reactions on the outlook for the banking sector. While loan demand remained healthy and asset quality remained resilient in January 2024, some analysts have cautioned against the potential for material deterioration. “We are projecting a slower loan growth of 4% to 5% for banks in 2024 (versus 5.3% in 2023), as we do not expect the strong momentum in the growth of 10.2% year-on-year in auto loans at end-January 2024 to be sustainable,” said CIMB-CGS in a research note on Monday. The research house expects car sales to weaken, potentially resulting in auto loans slowing down to 3% to 5% in 2024. Nevertheless, it expects loan growth for the banking industry to bode well at least for the next one- to two months, given the strong loan demand in the banking system. “We are encouraged to see that applications and approvals of all three major loan segments, such as residential mortgages, auto loans, and working capital loans, expanded at rates of more than 30% year-on-year in January 2024,” said CIMB-CGS, which also expects the gross impaired loan ratio to be stable in 2024. KUALA LUMPUR (March 4): The new law regarding procedures and enforcement of the “kill switch” to improve digital security will also take into account strict action against negligent parties in dealing with online fraud, including financial institutions. Deputy Minister in the Prime Minister’s Department (Legal and Institutional Reform) M Kulasegaran said banks need to be responsible and should take action in the event of an online fraud involving their negligence. The new law that is being studied will include all these matters,” he said during the question and answer session at the Dewan Rakyat on Monday. He was responding to a supplementary question from Khoo Poay Tiong (PH-Kota Melaka) regarding the matter. Last Tuesday, the Minister in the Prime Minister’s Department (Legal and Institutional Reforms) Datuk Seri Azalina Othman Said said the government is drafting a new law that includes provisions regarding procedures and enforcement of the automatic “kill switch” for fraudulent activities on online platforms. Responding to the original question from Dr Siti Mastura Muhammad (PN-Kepala Batas) regarding losses incurred due to scammers from 2020 to 2023, Kulasegaran said a total of 107,716 cases of online fraud with losses estimated to be worth RM3.2 billion were reported nationwide for the period. The government, he said, is taking comprehensive measures to combat the crime. “It includes the establishment of a National Scam Response Centre (NSRC) to take comprehensive enforcement action to combat online financial fraud including rapid response in tracing the funds. “In addition, the NSRC through the Malaysian Communications and Multimedia Commission (MCMC) and assisted by the telecommunications industry, will also be able to identify the phone numbers used in the conduct of this fraudulent offence by taking action to block and terminate the service of the phone number,” he said. fully borne by Midports Holdings Sdn Bhd, a subsidiary of Tanco Holdings Bhd, which is a partner of Menteri Besar Negeri Sembilan Inc (MBINS) for the project. Aminuddin said the first AI container port in the state is located in Pasir Panjang, Port Dickson. It has a 1.8km jetty and a terminal and container operation area of approximate - ly 80.93 hectares equipped with automatically operating gantry cranes. “The capacity of this port was built to receive container ships from the first generation up to the Ultra Max. However, it is a modest port, as it cannot compete with Port Klang in terms of capacity. The offshore area has a natural topography suitable for the construction of a port with a depth of up to 20 metres, and a distance of approximately 1.85km from the shore,” he said at the signing ceremony of the joint-venture agreement between MBINS and Midports Holdings for the development of the Smart AI Container Port here on Monday. Aminuddin said the construction of the port would have an impact on the national and state economies, especially the expected 5,000 new job opportunities in various fields. Read the full story SEREMBAN (March 4): Malaysia’s first smart artificial intelligence (AI) container port will be built in Port Dickson at an estimated cost of RM2 billion. Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun said the cost will be Banking system’s 5.7% loan growth in January a good start, but analysts mixed on outlook continues on page 12 bernama
tuesday march 5, 2024 12 The E dge C E O m o rning brief home Mercury Securities values soon-tobe listed Alpha IVF at 37 sen MP calls for new legislation, GLC to safeguard country’s rare earth elements by Surin Murugiah theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com “The risk-reward now is more balanced, as there are no new positive catalysts to spur share prices significantly higher,” said HLIB, which maintained a neutral call on the sector. “This is no thanks to NIM (net interest margin) being unable to recover meaningfully, NOII (non-interest income) growth to slow, and no NCC (non-credit cost) write-backs,” it stated in a note. HLIB also projected the sector’s profit to grow at a slower rate of 6% in 2024 and 4% in 2025, down from 15% in 2023. It endorsed Public Bank for its defensive qualities and multi-year low foreign shareKUALA LUMPUR (March 4): Mercury Securities Sdn Bhd has a “subscribe” recommendation on fertility care company Alpha IVF Group Bhd with a fair value of 37 sen based on financial year 2024 (FY2024) forecast earnings per share (EPS) of 1.5 sen and a peers average price-earnings (PE) of 24.8 times. In a note on Monday, the research house said it likes the stock for its attractive expansion plan, and proven track record in a niche market on the back of a recovering healthcare travelling industry that has grown at a compound annual growth rate (CAGR) of 27.5% from 2020 to 2022 (Vital Factor). It said the target price represents a potential return of 15.6% over the initial public offering (IPO) price of 32 sen. The IPO is backed by eight of the socalled cornerstone investors, including AHAM Asset Management, Eastspring Investments Bhd, Lion Global Investors Ltd and Value Partners Hong Kong Ltd, according to the prospectus launched. Mercury said Alpha IVF also plans to upgrade its existing facilities through efforts such as: (i) investing RM8.5 million on new lab and medical equipment, funded via IPO proceeds, (ii) allocating RM4.1 million on IT system enhancements, (iii) renovation and expansion plan for existing facilities in Selangor and Penang, costing RM2.2 million, increasing space for patient records and waiting areas, (iv) expansion of existing corporate office with an estimated cost of RM1 million, set to be completed within 36 months commencing in the first to second quarter of 2024. “Risk factors: (1) Dependency on skilled personnel, (2) Reliance on certain approvals, licences, permits and certificates, (3) Subject to risks of medical and legal claims, regulatory actions, (4) Dependency on ARS (assisted reproductive services) medication suppliers,” it said. The offering will close on March 8, and the listing is scheduled for March 22. from page 11 holding, while favouring Alliance Bank for its inexpensive valuations. Meanwhile, RHB Investment Bank also maintained a neutral rating due to the mixed picture for the banking sector. It said in a note that while there was healthy loan growth and improving asset quality, as well as a growth in the current account savings account (Casa) ratio, lending indicators showed sequentially lower demand from the business segment in January. The research house named CIMB Bank Bhd, AMMB Holdings Bhd, Hong Leong Bank Bhd and Alliance Bank Malaysia Bhd as its top picks. KUALA LUMPUR (March 4): The government should enact legislation and establish a government-linked company (GLC) to safeguard the country’s rare earth element sources, according to Julau Member of Parliament Datuk Larry Soon@Larry Sng Wei Shien. Given Malaysia’s rich natural resources, which include rare earth elements valued at some RM809.6 billion in 29 locations nationwide, Sng emphasised the need to ensure responsible and sustainable use of these resources. “I propose that the government regulate and establish a GLC to oversee mining operations, similar to how Petronas oversees the petroleum industry,” said Soon during the debate on the royal address in Dewan Rakyat on Monday. Soon also urged the government to formulate a law to control the exploitation of rare earth mining, prioritising regulated environmental protection. In a parliamentary written reply dated Nov 22, 2023, the Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad disclosed that the Mineral Industry Development Coordination Committee (JKPPIM) had agreed to adopt standard operating procedures for non-radioactive rare earth element (NRREE) mining. These procedures include determining NRREE mining from ion absorption clay to produce rare-earth carbonate without involving the production of radioactive materials, and using in-situ leaching mining methods that avoid large-scale open-cast mining. Nik Nazmi added that the ministry would also review requirements from existing legal aspects such as the Environmental Quality Act 1974, the National Forestry Act 1984, the Mineral Development Act 1994, and the Wildlife Conservation Act 2010 towards fostering a responsible and sustainable mining industry. Consolidate info from all govt agencies to address low Padu registration On a separate note, Sng suggested consolidating information from all 455 government agencies, including the National Registration Department (JPN), Inland Revenue Board (LHDN), and Election Commission (SPR), to address the low registration rate of Padu. Acknowledging Padu as a commendable initiative facing numerous challenges, Sng highlighted the low registration rate, with only 16% or 3.82 million out of 23 million eligible Malaysian citizens registered. “Why don’t we combine all the available information? Why make it difficult for people to collect data from them?” questioned Sng. He also proposed that the Ministry of Economy allocate special funds to service centres in rural parliamentary constituencies for on-site assistance in the registration process. Julau Member of Parliament Datuk Larry Sng said the government should enact legislation and establish a government-linked company to safeguard the sources of country’s rare earth element which are estimated to be worth some RM809.6 billion in 29 locations nationwide. bernama
TUESDAY MARCH 5, 2024 13 THEEDGE CEO MORNING BRIEF Invest in Women: Accelerate Progress FORUM2024 INTERNATIONAL WOMEN'S DAY PARTNERS #INSPIREINCLUSION #INVESTINWOMEN #OPTIONSIWD2024
TUESDAY MARCH 5, 2024 14 THEEDGE CEO MORNING BRIEF On average, women constitute 50% of any population and yet, systemic disparities and discrimination persist. Find out what can be done to promote parity and empower individuals interested in investing in women to close the global gender gap as well as drive economic growth and social progress. MONDAY, MARCH 11, 2024 11.30AM – 5.00PM BALLROOM A, HILTON KuALA LuMPuR 2.50pm PANEL DISCUSSION I PROGRAMME 4.20pm PANEL DISCUSSION I I Barrier Breakers + The Road Ahead for Creative Women 11.30am REGISTRATION 12.00pm LUNCH 1.00pm Welcome Address YBhg Dato’ Ho Kay Tat Publisher & Group Chief Executive Officer, The Edge Media Group 1.05pm Keynote Address YB Puan Hannah Yeoh Minister of Youth and Sports 1.20pm YBhg Tan Sri Dato’ Seri Prof Emerita Dr Mazlan Othman Executive Director, Tropical Science Foundation 4.50pm Q&A SESSION AND CLOSING REMARKS 1.50pm Ms Lina Tan Founder and Chief Content Officer, Red Communications Sdn Bhd Nurturing Female Talent: The Key Role Managers Play in Creating Equal Opportunity and Fostering Growth Ms Beh Gaik Lean Co-Founder & Chef-Owner, Auntie Gaik Lean’s Old School Eatery YBhg Dato’ Ho Kay Tat Dr Anita Ratnam Founder, Narthaki.com Ms Wendy Ting Managing Director, Group International Business & Group Corporate Banking, RHB Banking Group Ms Nadirah Zakariya Founder, Layar Lucida Ms Amanda Zhang CEO & President, Mercedes-Benz Malaysia & Head of Region SEA II 3.20pm COFFEE BREAK 3.50pm Ms Mint Lim Founder, School of Concepts Ms Freda Liu Emcee & Moderator for Panel Discussion I & II #INSPIREINCLUSION #INVESTINWOMEN #OPTIONSIWD2024 2.20pm Ms Madhusmita Bora Co-Founder, Sattriya Dance Company
TUESDAY MARCH 5, 2024 15 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF SMRT lands ATM infrastructure project in the Philippines KUALA LUMPUR (March 4): Ace Marketlisted SMRT Holdings Bhd has been awarded a project by Pito AxM Platform (PAPI) to deploy its managed ATM infrastructure solutions in the Philippines through its wholly owned subsidiary N’osairis Technology Solutions Inc (NTSI). SMRT did not disclose the value of the project, which will take place over three years, with NTSI deploying its solutions at the designated ATM sites by the end of 2024. “Following the deployment, SMRT shall fully manage the sites’ network infrastructure for three years, commencing from the installation date of each site,” said SMRT in a statement on Monday. “There is no fixed contract sum stated in the letter of offer. NTSI will bill according to work done in accordance with the timing and specification of sites to be identified by PAPI,” it said in a separate bourse filing. According to the filing, PAPI is a wholly owned subsidiary of Seven Bank, a Japanese bank and leading global ATM network and financial service provider. It was incorporated in the Philippines in 2019 to offer ATM services in the local market. On the financial front, SMRT said it intends to finance the commitment via internally generated funds. — by Hee En Qi Deleum eyes regional growth with US$7 mil acquisition KUALA LUMPUR (March 4): Oil and gas services outfit Deleum Berhad is seeking to acquire a 70% stake in valves company OSA Industries Indonesia (OSAII) for US$7 million (RM33.1 million) to fortify its power and machinery (P&M) business in Indonesia. The acquisition by wholly-owned Deleum Services Sdn Bhd represents 70% of OSAII’s total valuation of US$10 million, subject to due diligence and finalisation of definitive agreements, Deleum said in a statement. Deleum has entered the heads of agreement (HOA) with five parties, including OSAII and its shareholders Ong Siow Aik and OSA Industries Pte Ltd, to undertake due diligence on the acquisition target. The HoA entails all parties to collaborate over a six-month period in facilitating Deleum’s due diligence on OSAII and PT OSA Megah, as well as to negotiate and finalise the definitive agreements for the proposed acquisition, Deleum said. — by Surin Murugiah Read the full story Cash-strapped EcoFirst to sell vacant land in Shah Alam to HCK Capital KUALA LUMPUR (March 4): EcoFirst Consolidated Bhd is selling a piece of vacant land in Shah Alam at a loss to HCK Capital Group Bhd, saying the disposal will release it from the burden of monthly loan instalments of about RM1.35 million to its financier. The proposed disposal, at RM34 million, “would be a great stress relief to the group’s cash flow as compared to retaining the land for a potential loss-making development,” the group said in an exchange filing. As at Nov 30, 2023, EcoFirst’s total borrowings stood at RM268.54 million, while its cash and bank balances totalled RM9.52 million. EcoFirst said its wholly owned EcoFirst Worldwide Sdn Bhd had inked an agreement with HCK Capital’s unit, HCK Estates Sdn Bhd, for the disposal of the leasehold land in Cahaya SPK, which measures 19,243 sq m. The sale price of RM34 million is RM15.32 million less than the property’s net book value of RM49.18 million. EcoFirst said the land’s market value, as certified by valuer CCO & Associates (KL) Sdn Bhd, is only RM31 million. Of the proceeds, RM20.03 million will be used to repay the vendor’s financier, RM13.04 million for general working capital, and RM800,000 to repay an outstanding amount owed to the company from which EcoFirst acquired the land. — by Justin Lim JAG’s offer for KUB Malaysia turns unconditional KUALA LUMPUR (Mar 4): The mandatory general offer (MGO) by JAG Capital Holdings Bhd to takeover KUB Malaysia Bhd at 60 sen per share has turned unconditional after the offeror received enough valid acceptances that pushed its stake in KUB past 50% — to 56.75%. JAG is controlled by Minister of Plantation Industries and Commodities Datuk Seri Johari Abdul Ghani, who holds 98.75% in the company. In a statement, Maybank Investment Bank, on behalf of JAG, said the MGO for the remaining shares shall remain open for acceptances for another 14 days until March 18, 2024. “Holders who wish to accept the offer are advised to refer to the offer document for the details, terms and conditions of the offer and the procedures for acceptance of the offer. “Holders are also advised to carefully consider the independent advice circular dated Feb 8, 2024 before making any decision,” Maybank said in a press release. JAG triggered the MGO for KUB on Jan 9 this year after buying 1.79 million KUB shares in the open market, which raised its shareholding in the listed entity to 33.28%. — by Emir Zainul Masteel appoints JCorp president Syed Mohamed as chairman KUALA LUMPUR (March 4): Malaysia Steel Works (KL) Bhd (Masteel) announced on Monday the appointment of Johor Corp Bhd (JCorp) president and CEO Datuk Syed Mohamed Syed Ibrahim as its independent and non-executive chairman. Syed Mohamed, 65, is replacing Datuk Ikhwan Salim Sujak, 67, who retired at the end of his oneyear term on Feb 28, according to the steel manufacturer’s bourse filing. Masteel said Syed Mohamed, who is also the chairman of JLand Group Sdn Bhd, Waqaf An-Nur Corp Bhd and KPJ Healthcare University, brings with him over 40 years of experience leading prominent organisations across various industries. In a separate filing, Masteel said that Datin Ng Pik Lian has ceased to be a substantial shareholder of the group after disposing of her entire shareholding in private vehicle TYY Resources Sdn Bhd. Ng held a 31.46% stake in Masteel via TYY Resources collectively with Masteel managing director and CEO Datuk Seri Tai Hean Leng and the Estate of Tai Chet Siang (deceased), according to Masteel’s 2022 annual report. — by Anis Hazim Icon Offshore bags offshore support vessel services contract KUALA LUMPUR (March 4): Icon Offshore Bhd has bagged a contract to provide a platform supply vessel from a petroleum arrangement contractor (PAC) for its drilling campaign. It did not provide the name of the PAC nor the value of the contract, which it said is based on its bid proposal. The job’s primary period is 100 days, starting from March 31, 2024, the company showed in a bourse filing. Icon Offshore’s share price closed half a sen or 0.85% higher at 59.5 sen on Monday, giving the group a market capitalisation of RM322 million. — by Justin Lim
TUESDAY MARCH 5, 2024 16 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 4): The government has presented a motion to the Dewan Rakyat, seeking a six-month suspension for Tasek Gelugor Member of Parliament Wan Saiful Wan Jan. According to the Dewan Rakyat’s order paper for Tuesday (March 5), Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi submitted the motion, which will be debated and voted on after the morning oral question session. The motion seeks action against Wan Saiful for his offensive remarks made last Wednesday during the debate on the King’s royal address in the Dewan Rakyat. Referring to the Dewan Rakyat Hansard, the motion highlighted Wan Saiful’s insinuation that Prime Minister Datuk Seri Anwar Ibrahim is a leader who abuses power. “Corruption means abusing power. Ampun Tuanku, the person who abused that power will appear before Your Majesty every week before the Cabinet meeting.” This is an unmistakable reference to Anwar, who, as prime minister, conducts a pre-Cabinet meeting with the King every week. The motion additionally accuses Wan Saiful of misusing the King’s name to influence the Dewan Rakyat. “The statement by Tasek Gelugor is a serious allegation and violates the rights and privileges of an MP, and it is an insult to this house. As such, it is agreed that Wan Saiful must be suspended from participating in the Dewan Rakyat session for six months from the date this motion is approved,” the motion reads. Government seeks six-month suspension for Wan Saiful over insinuations of Anwar’s corruption IPOH (March 4): Home Minister Datuk Seri Saifuddin Nasution Ismail on Monday slammed reports that claimed the implementation of the Licensed Prisoner Release Programme (PBSL) through house arrest is an effort to free former prime minister Datuk Seri Najib Razak. Instead, the proposal is a government initiative to reduce overcrowding in all 43 prisons across the country that currently house 80,000 inmates, he stressed. “I want to refute the mischievous narrative played by a handful of media purportedly to put Najib under house arrest. “They cannot see the perspective of reducing prison overcrowding, especially for certain categories, as there is a panel to evaluate them for the types of offences we recommend, and only if they are sentenced to less than four years in prison,” he said. On Saturday, Saifuddin reportedly said that the government had agreed in principle to start PBSL through house arrest for prisoners serving sentences of four years and below as an effort to reduce prison overcrowding. He was reported as saying that the Home Ministry is currently in the process of examining the method of implementing the initiative from the point of view of relevant legal provisions to ensure whether existing acts and regulations need to be re-enacted or not. Meanwhile, Saifuddin said a more relaxed interview process is being considered by the ministry in improving applications to obtain citizenship status through naturalisation. Licensed prisoner release prog via house arrest not to free Najib — Saifuddin Bernama According to the Dewan Rakyat’s order paper for Tuesday (March 5), Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi submitted the motion, which will be debated and voted on after the morning oral question session. LOW YEN YEING/THE EDGE He said the ministry, together with the National Registration Department (JPN), will examine the improvements that can be implemented to facilitate applications for citizenship status under Article 9 (1) of the Federal Constitution. “Among them, the method of conducting the interview is not too regimented, not too schematic, and we want to conduct it in a more relaxed, conducive atmosphere, and remove a sense of nervousness,” he told a press conference after attending the ‘Menyemai Kasih Rakyat Bersama Menyantuni Penghuni Rumah Seri Kenangan’ programme in Ulu Kinta here on Monday. He said some 12,000 citizenship applications out of a total of 49,000 being processed by the JPN are currently under Article 19 (1). Earlier, he witnessed the Malay Language Knowledge Test Programme at the KDN Complex here, which was attended by a total of 56 applicants for citizenship according to the naturalisation process, who were between 70 and 100 years old. A total of five replacement ID card applications were processed and submitted to the residents of Rumah Seri Kenangan Ulu Kinta. The Mekar programme with the residents of Rumah Seri Kenangan Ulu Kinta is a periodic programme organised by the Perak JPN for welfare and protection homes to deal with the issue of identity document dropouts, and facilitate the registration or replacement of MyKad documents. The JPN’s Mekar programme is a field programme, where the issuance of identity documents such as MyKad and birth certificates is provided to people with disabilities, the elderly, homeless patients, and those living in the interiors. SAM FONG/THE EDGE BY CHOY NYEN YIAU theedgemalaysia.com Read also: MACC gives Wan Saiful one week to report alleged bribe offer to support Anwar
TUESDAY MARCH 5, 2024 17 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 4): A former director of Consortium Zenith Construction Sdn Bhd (CZCSB) agreed with Lim Guan Eng’s counsel Haijan Omar that when the Malaysian Anti-Corruption Commission (MACC) took his statement on Jan 18 and Sept 5, 2018, he did mention that the RM19 million money paid by his company was not meant for the former Penang chief minister. The former director, Datuk Zarul Ahmad Mohd Zulkifli, who is testifying in his impeachment proceedings, was first shown the statement the MACC took from him, and he agreed that the statement was without any amendment or addition or implicating Lim. Zarul Ahmad, 64, who is now on a wheelchair, agreed with Haijan that the total sum of RM19 million paid to businessman G Gnanaraja was to be paid to the then prime minister, Datuk Seri Najib Razak, to seek his assistance for the MACC to drop investigations into Zarul and CZCSB, while also maintaining the company’s good ties with Najib. The statement he gave to the MACC was to be used against Gnanaraja, who was initially charged with cheating in the Shah Alam Sessions Court, but the businessman pleaded guilty to a lesser charge of an offence under the Companies Act 2016. However, when Zarul tried to further explain the matter, he was prohibited to do so by Haijan. This resulted in Sessions Court judge Azura Alwi asking Zarul to reply with either a ‘yes’ and ‘no’ while he sought to elaborate on the RM19 million — when the prosecution led by deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin wanted to ask him about it. Trial within trial following impeachment The witness was responding in a trial within trial, following his purported conflicting testimony in Lim’s trial, where Azura had granted leave (permission) on Jan 9 for the defence to begin the impeachment proceedings against him. Prior to this, in the main undersea tunnel graft trial, Zarul had testified that part of the RM2 million paid to Gnanaraja — which also consisted of part of the RM19 million that he and the company paid in August 2017 — was paid to Lim. Zarul said he himself withdrew RM2 million from his own company’s safe to allegedly pay Lim through Gnanaraja. However, during the trial within trial on Monday, Zarul agreed that the payment voucher and Public Bank cheque issued by the company for RM2 million, which was cashed in and transported in two bags, was to be paid to Najib. The witness said that was the content of his statement, which he gave to the MACC twice, and he agreed there were no additions or amendments to the statement. However, Zarul said he had lodged a separate complaint with the MACC on another matter. He agreed with Haijan that his company had tried to recoup the money from Gnanaraja, and they had also appointed a lawyer, as the sum paid to Gnanaraja was such a huge sum. Zarul also agreed with Hajian that as a result of his complaint to the MACC, Gnanaraja’s ‘Datuk’ title was withdrawn. Lim, 60, is alleged to have used his position as the then chief minister of Penang to receive bribes amounting to RM3.3 million by helping the company owned by Zarul to be appointed to implement a highway and undersea tunnel proBY HAFIZ YATIM theedgemalaysia.com Undersea tunnel graft case: Ex-Zenith director facing impeachment admits RM19 mil paid to Gnanaraja not meant for Guan Eng Read also: High Court grants leave to initiate contempt proceedings against ex-Umno leader Isham Jalil Police to record Hadi’s statement on Tuesday over ‘upholding Islam’ remarks ject in Penang worth RM6,341,383,702. Lim allegedly committed the act between January 2011 and August 2017 at the Penang Chief Minister’s Office. For the second amended charge, Lim allegedly sought a bribe of 10% of the profits from Zarul, as an inducement to help the businessman’s company to be appointed for the same project. Lim allegedly committed the act near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City between 12.30am and 2am in March 2011. He is also facing two charges of causing two lots of land owned by the Penang government worth RM208.8 million to be disposed of to companies allegedly linked to the undersea tunnel project in the state. The offences were allegedly committed at the Penang Land and Mines Office, Komtar on Feb 17, 2015 and March 22, 2017. The trial resumes on Wednesday as Zarul was unwell. SAM FONG/THE EDGE
TUESDAY MARCH 5, 2024 18 THEEDGE CEO MORNING BRIEF WORLD BANGKOK (March 4): Thailand’s Supreme Court cleared self-exiled former prime minister Yingluck Shinawatra of negligence on Monday, in a boost for an influential family whose party is back in power after a decade in the political wilderness. Yingluck, who has lived abroad since 2017 to avoid jail over a subsidy scheme that caused billions of dollars in state losses, was cleared of favouring certain companies that received government contracts, in a unanimous decision by the top court. The ruling comes two weeks after brother Thaksin Shinawatra, the billionaire figurehead of the populist political juggernaut Pheu Thai, was freed from hospital detention on parole, six months Boon for Thailand’s Shinawatras as court clears ex-PM Yingluck of negligence (March 4): The Philippines will cooperate with China in talks on the disputed South China Sea, President Ferdinand Marcos Jr said on Monday, but will push back when its sovereignty and maritime rights are ignored. Speaking at a Lowy Institute forum during a visit to Australia, Marcos said he was committed to working with Southeast Asian nations and China for a long-delayed code of conduct (COC) in the South China Sea anchored on international law. “These efforts are not pursued in a vacuum. A conducive environment where tensions are effectively managed is crucial to the success of the COC negotiations,” Marcos said as he reiterated he will not surrender any Philippine territory to a foreign power. Ties between neighbours the Philippines and China soured shortly after Marcos took office in 2022, with repeated disputes over atolls and reefs in the South China Sea at a time when Manila has developed closer defence ties with the US. Marcos said the Philippines’ alliance with the US was forged “by our own choice and we continue to strengthen it by our own choice”. “Our alliance has been a pillar of regional stability for decades, and we all need for it to continue to be a force for good in the coming years,” said Marcos, the son and namesake of the late Philippine strongman who ruled for two decades until his fall in 1986. In a departure from his predecessor Rodrigo Duterte’s pro-China stance, Marcos has accused Beijing of aggression in the Philippines’ exclusive economic zone, including the use of water cannon, “military-grade” lasers and collision tactics to drive away Philippine vessels. Philippines to push back against China if maritime interests ignored, says Marcos Superpower rivalry Under Marcos, the Philippines has nearly doubled the number of its bases accessible to US forces, including three new sites facing Taiwan, an island China claims as its own. US-Philippine military exercises have taken place regularly for decades, but manoeuvres have extended to include joint air and sea patrols over the South China Sea and close to Taiwan, actions China has seen as “stirring up trouble”. China, which claims sovereignty over most of the South China Sea, has accused the Philippines of repeatedly trespassing on its territory, while urging dialogue to prevent mishaps. A 2016 arbitration ruling said China’s claim had no legal basis under international law. “Our independent foreign policy compels us to cooperate with them on matters where our interests align, to respectfully disagree on areas where our views differ, and to push back when our sworn principles such as our sovereignty, our sovereign rights, and our jurisdiction ... are questioned or ignored,” Marcos said. BY KAREN LEMA & MIKHAIL FLORES Reuters BY PANARAT THEPGUMPANAT & CHAYUT SETBOONSARNG Reuters into a commuted jail sentence for abuse of power and conflicts of interest. Handling a complaint filed by Thailand’s anti-graft commission under a military-backed government, the court in a statement said Yingluck and other defendants had followed regulations in awarding 250 million baht (RM33.06 million) of government contracts. The commission has 30 days to appeal. Like Thaksin, Yingluck fled into exile to avoid prison after her government was ousted in a 2014 coup, a key milestone during two decades of political conflict between the Shinawatra family and its allies, and a network of conservatives, elite families and generals whose interests were challenged by its rise. Marcos said the Philippines’ alliance with the US was forged “by our own choice and we continue to strengthen it by our own choice”. A Philippine supply boat sails near a Chinese Coast Guard ship during a resupply mission for Filipino troops stationed at a grounded warship in the South China Sea. REUTERS
TUESDAY MARCH 5, 2024 19 THEEDGE CEO MORNING BRIEF WORLD Apple hit with €1.8 bil EU fine over music app abuses Big tech-led rally unlike past bubbles, Goldman strategists say BY SAGARIKA JAISINGHANI Bloomberg BY SAMUEL STOLTON & STEPHANIE BODONI Bloomberg (March 4): The S&P 500’s advance to a record high — fuelled by a small group of supercharged technology stocks — doesn’t resemble past bubbles, according to strategists at Goldman Sachs Group Inc. Stocks with an enterprise value-to-sales ratio of above 10 account for 24% of total US equity market capitalisation, versus 28% during 2021 and 35% during the tech bubble, strategist David Kostin wrote in a note last Friday. However, the breadth of “extreme valuations” is far more contained, with the number of stocks trading at those multiples down sharply from the peak in 2021, he added. “This time is different,” Kostin said. “Unlike the broad-based ‘growth at any cost’ in 2021, investors are mostly paying high valuations for the largest growth Friday’s close. Her target is now among the highest on Wall Street, and is based on bullish signals around stronger earnings growth and “surprising” profit margin resilience. Other strategists such as John Stoltzfus at Oppenheimer Asset Management have also brushed off the risk from stretched positioning and technical indicators. The bullish momentum is driven by fundamentals that are “too strong to argue against”, and are reflected in data showing resilience in business, consumer spending and jobs growth, Stoltzfus wrote in a note. “There’s likely room for a further broadening of this year’s stock market rally and opportunities to see equities further climb the proverbial wall of worry,” the strategist said. (March 4): Apple Inc was hit on Monday with a €1.8 billion (US$2 billion or RM9.22 billion) penalty from the European Union (EU) over an investigation into allegations it shut out music-streaming rivals, including Spotify Technology SA, on its platforms. The European Commission also ordered the Cupertino, California-based firm to stop preventing music-streaming apps from informing users of cheaper deals away from Apple’s App Store. The larger-than-expected fine is the first to be handed out to Apple by the EU. Shares were down 1.5% in pre-market trading in New York on Monday. “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” EU antitrust chief Margrethe Vestager said. “They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.” Apple said it will appeal against the EU’s decision, which sets off a legal battle that could last for years. In a statement, the company said regulators failed to “uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast”. Apple reported revenue of US$119.6 billion for the first quarter, including US$69.7 billion from the iPhone alone, with sales from the device up 6% from a year ago. Vestager has made it a core strategy to attempt to dismantle Big Tech’s dominance in the bloc through fines and regulatory actions. Monday’s penalty is the third largest that she’s handed out for anti-competitive behaviour. She slapped Alphabet Inc’s Google with the two biggest EU antitrust fines so far — a record €4.3 billion over its dominance in the Android mobile market in 2018. That followed a €2.4 billion fine for allegedly boosting its own shopping service over rivals. She also ordered Apple to repay €13 billion in allegedly unfair tax breaks from Ireland. The EU’s investigation was sparked by a complaint nearly five years ago from Stockholm-based Spotify, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple’s alleged stranglehold on how the App Store operates. BLOOMBERG BLOOMBERG stocks in the index. We believe the valuation of the Magnificent 7 is currently supported by their fundamentals.” The so-called Magnificent Seven — comprising Apple Inc, Microsoft Corp, Nvidia Inc, Amazon.com Inc, Meta Platforms Inc, Alphabet Inc and Tesla Inc — have powered the S&P 500 to all-time peaks this year, partly fuelled by the frenzy around artificial intelligence. The gains have left strategists scrambling to lift their end-2024 targets for the benchmark index just two months into the year. Bank of America Corp strategist Savita Subramanian became the latest to boost her S&P 500 forecast to 5,400 points from 5,000 — implying a gain of about 5% from last
TUESDAY MARCH 5, 2024 20 THEEDGE CEO MORNING BRIEF WORLD (March 4): Few obstacles seem to be in the way of bitcoin’s current rally. The largest cryptocurrency rose for the second straight day, and marched closer to its all-time high, driven by expectations of exchange-traded funds’ (ETFs) robust demand at the week’s start. The most liquid token rose as much as 4.5% to US$65,650 (RM310,098), its first move above US$65,000 since November 2021. The token has surged around 55% so far this year, outpacing traditional asset classes such as stocks by a wide margin. “These conditions are reminiscent of some moments of late 2020 and 2021, of the bull market and extreme optimism,” said Jaime Baeza, the founder of crypto hedge fund AnB Investments. “There is high leverage in the market, and levels of greed are getting extreme.” At the heart of this frenzy for the largest crypto token lies seemingly insatiable demand from US-listed bitcoin ETFs, which began trading on Jan 11. Bitcoin has jumped about 186% in the last 12 months. Net inflows of US$7.35 billion have been invested since the debut of US bitcoin ETFs from some of the biggest fund names, including BlackRock Inc and Fidelity Investments. Even outsize outflows at one notable firm — nearly US$9 billion at Grayscale Bitcoin Trust (GBTC) since the ETFs were listed — haven’t swayed traders. There were net outflows of about US$140 million last Friday, with GBTC seeing around US$490 million pulled from the fund. “Given the low liquidity over the weekend, markets are moving north in anticipation that tonight’s (Monday) ETF inflows will continue, and prices will continue to rally,” said Hayden Hughes, a co-founder of social-trading platform Alpha Impact. Traders are betting on the price to soon cross the record of almost US$69,000, reached during the Covid-19 pandemic in November 2021, given the ETFs’ strong demand and concern of missing out ahead of bitcoin halving, which is expected in April this year. After the halving — when the reward for mining is cut in half — the supply growth of the coin could come down, adding to the demand squeeze. Other tokens known as altcoins were also up on Monday, including Cardano by 6.8% and Solana by 3.3%. Memes rise Small-cap tokens, known as meme coins, also rose on the back of bitcoin’s rally. Dogecoin was up nearly 20%, and Shiba Inu 34% in the last 24 hours. “This is a situation reminiscent of the 2021 bull run, with retail traders looking to make quick profits from rising prices in very volatile tokens,” said Caroline Mauron, a co-founder of digital-asset derivatives liquidity provider Orbit Markets. Trading in crypto derivatives, which reflects traders’ positions, also signaled a bullish outlook. Open interest at Chicago-based CME Group’s bitcoin and Ether futures market was just 1.8% away from their respective record highs. The increase in the number of outstanding contracts is a sign of greater interest in crypto-related exposure and hedging among US institutions. “The all-time highs in bitcoin should get tested in the short term, with the important 70,000 level providing strong resistance,” Mauron said. Bitcoin scales higher on ETF-led demand (March 4): The World Trade Organization’s (WTO) ability to tear down barriers to commerce, ensure stability through global accords and enforce the rules came under renewed criticism following a chaotic and contentious meeting of its top officials. The 13th ministerial conference in Abu Dhabi last week laid bare an uncomfortable truth: For an organisation that needs all 166 member countries to agree, the WTO again struggled to muster even a small win. Those are only getting messier and harder to pull off in an era of two armed conflicts, widening geopolitical gulfs and a realignment of the trading ties that bind the postwar economic order. Meetings in the capital of the United Arab Emirates — positioned both geographically and geo-economically between US-European Union and China-Russia alliances — were dominated by disorder and confusion, according to several participants, who asked not to be named speaking about the private talks. They’re rarely jovial affairs, but hopes were quickly dashed that this year would be a turning point toward unity. As talks headed for a sixth day near midnight Friday, ministers could only agree on a measure they’ve maintained since 1998 — extending a moratorium on tariffs on digital commerce. In doing so, the WTO salvaged an accord that businesses warned would splinter the global Internet if it lapsed, and navigated past opposition from India, South Africa and Indonesia. But only barely. Minutes before a tentative e-commerce deal was announced, European Union (EU) officials warned reporters to brace for a negotiating round to end in a full-blown collapse of the multilateral trading system’s cooperative spirit. Fractures in global trade deepen as WTO musters only a small win “It’s incredibly frustrating to see the WTO unable to move forward,” said Tiffany Smith, vice president of global trade policy at the Washington-based National Foreign Trade Council. “The endless brinkmanship over the moratorium crowds out the ability to make progress on a broader agenda of important issues and undermines the viability of the WTO as a useful forum for trade ministers.” The target of Brussels’ and Washington’s frustration was India’s Trade Minister Piyush Goyal, who arrived midway through the schedule of events and, some western officials say, showed little flexibility. He asserted publicly that the world’s most populous nation was “not blocking anything”, saying he was defending the interests of the poor against rules long designed to favour the rich. India, along with Indonesia and South Africa, had been pushing to lift the moratorium on customs duties on electronic trade, arguing they are losing tariff revenue on everything from software downloads to e-books and streaming movies. Such tactics showed how the power balance in the global economy is shifting to Asia. BY ERIC MARTIN, SHRUTI SRIVASTAVA & JORGE VALERO Bloomberg BY SUVASHREE GHOSH & SIDHARTHA SHUKLA Bloomberg BLOOMBERG
TUESDAY MARCH 5, 2024 21 THEEDGE CEO MORNING BRIEF WORLD (March 4): China would be barred from buying oil from the US’s emergency stockpiles under a provision included in mustpass government funding legislation unveiled Sunday. Republican critics have sought to bar the sale of oil from the Strategic Petroleum Reserve to China, after nearly one million barrels released from the oil reserve in 2022 were sold to Unipec America Inc, a Houston-based subsidiary of China-owned Sinopec Corp. China barred from buying US oil reserves in funding bill (March 4): China is expected to set its annual growth rate for 2024 at “around 5%” when the national legislature meets this week, a fairly ambitious target for a government grappling with severe economic challenges. Almost all of the 27 economists surveyed by Bloomberg about the upcoming annual National People’s Congress session expect Beijing to announce a growth target similar to 2023’s, albeit one that will be harder to reach given a higher base of comparison. Economists polled in a separate, broader survey expect the economy to grow about 4.6% in 2024. Premier Li Qiang is scheduled to deliver his first government work report Tuesday, outlining key economic targets for measures including the gross domestic product growth (GDP) and fiscal deficit. These targets could serve as a precursor to Beijing’s broader policies for the year as it seeks to arrest an erosion of confidence. Top officials have signalled they likely won’t rely on massive stimulus given concerns around creating systemic risks, and there will be a tougher comparison this year since 2023’s growth benefited from the post-pandemic reopening. “Expectations are perhaps unrealistically high that the Two Sessions in March will produce major policy stimulus,” Erica Tay, an economist at Maybank Securities, said in a survey response. “Policymakers may announce ambitious growth targets, but the economy remains weighed down by excess capacity and the property slump.” China will likely run a smaller budget deficit of 3.28% of GDP this year, while ramping up new sovereign bond issuance China expected to target GDP growth of around 5% in 2024 by more than 20%, according to economists polled by Bloomberg. The quota for local government bonds issuance is estimated to remain largely unchanged at four trillion yuan (US$556 billion or RM2.63 trillion). The target for the surveyed urban jobless rate will also likely remain at 5.5%. President Xi Jinping’s government is still contending with a plethora of structural problems, including a persistent property crisis and stubborn deflation. Recent data suggested an uneven recovery in the world’s No 2 economy: A slump in the nation’s home sales dragged on and factory activities shrank for the fifth straight month in February, while travel and tourism picked up during a recent long holiday. BY ZHEPING HUANG & CYNTHIA LI Bloomberg BY ARI NATTER Bloomberg BLOOMBERG BLOOMBERG The White House has said the Energy Department is required by law to sell oil from the Strategic Petroleum Reserve in a competitive auction to the highest bidder, regardless of whether the bidder is a foreign company. And the Trump administration sold oil to PetroChina International, a subsidiary of Chinese state oil company PetroChina Co in 2017. The Strategic Petroleum Reserve, created in the aftermath of the Arab oil embargo in the 1970s, currently stands at 360 million barrels, close to a 40-year-low, following the Biden administration’s historic release of 180 million barrels in 2022 to tame high oil gas prices in the aftermath of Russia’s invasion of Ukraine. The administration has been slowly trying to refill it — purchasing some 23 million barrels since last year. The language in the government-funding legislation is similar to a bill passed by the Republican-controlled House last year barring the sale of Strategic Petroleum Reserve oil to China that was never taken up in the Senate. Congress aims to pass the bill before a Friday partial shutdown deadline.
TUESDAY MARCH 5, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (March 4): Hong Kong’s property market saw the best weekend in a year after the government lifted decade-long curbs on homebuying. The financial hub’s 10 biggest estates recorded the most sales in 61 weeks with 27 transactions, 3.5 times higher than the previous weekend, according to Midland Realty, which tracks the data as a gauge of second-hand market sentiment. The new-home market is just as robust. Henderson Land Development Co’s project Belgravia Place in Kowloon sold all of the 138 units on offer in a mere four hours on Sunday, the company said. That’s after the apartments received more than 4,400 applications to purchase them, meaning the units are 31 times oversubscribed. While the sales are a boost to market sentiment, most analysts expect the medium-term outlook to remain challenging due to high interest rates, ample inventory and a weak economy. Shares of Henderson Land climbed as much as 3.4% on Monday morning. Its peer Sun Hung Kai Properties Ltd rose as much as 3%. “Hong Kong’s urgency to restore vigour to its wheezy housing market is evident in its latest, decisive steps,” Patrick Wong, a Bloomberg Intelligence analyst, said in a Hong Kong home sales surge on weekend after curbs lifted MUMBAI (March 4): Moody’s Investor Service sharply raised its gross domestic product (GDP) forecast for India on Monday, following the strong momentum seen in the South Asian economy in recent quarters, which the ratings agency expects will continue into 2024. “India’s economy has performed well and stronger-than-expected data in 2023 has caused us to raise our 2024 growth estimate to 6.8%, from 6.1%,” Moody’s said. “India is likely to remain the fastest growing among G20 economies over our forecast horizon.” India’s economy grew at its fastest pace in one-and-half years in the final three months of 2023, led by strong manufacturing and construction activity, posting growth of 8.4%, which was faster than the 6.6% estimated by economists. High-frequency indicators show the economy’s strong third and fourth quarter momentum carried into the first quarter of the current calendar year, Moody’s said. “Robust goods and services tax collections, rising auto sales, consumer optimism and double-digit credit growth suggest urban consumption demand remains resilient,” it added. “On the supply side, expanding manufacturing and services PMIs add to evidence of solid economic momentum.” The ratings agency said it expects policy continuity after the general election due BY SHAWNA KWAN Bloomberg Read also: India asks tech firms to seek approval before releasing ‘unreliable’ AI tools Read also: Hong Kong law firms cut office space in new blow to business hub note on Monday. “It could take the heavy artillery of interest-rate cuts to relight the fire that drives investment demand.” The government last week took major steps to boost the ailing property market by loosening mortgage rules and removing all of the extra taxes designed to cool demand. Non-residents don’t have to pay a combined 15% tax when purchasing properties, while owners can sell their homes any time without paying a special duty. The sales of all the units available at Belgravia Place are “rare in recent months”, Sammy Po, chief executive officer of the home division at Midland Realty, said in a statement. “We can see that the buyers’ speed to enter the market is accelerating.” Po expects first-hand transactions in March to reach the highest in a year. There were also buyers who purchased several units in one go, with one snapping up four apartments for a combined HK$18 million (RM10.87 million), Henderson added. Buyers no longer need to pay 7.5% when they own more than one home, compared with the standard tax rate that’s capped at 4.25%. BLOOMBERG REUTERS by May, and a continued focus on infrastructure development. While private industrial capital spending has been slow to pick up, it is expected to grow with ongoing supply chain diversification benefits and investors’ response to the government’s scheme to boost key manufacturing industries, it said. Rising capacity utilisation, robust credit growth and upbeat business sentiment point to an improving outlook for private investment, it added. Headline inflation in January eased to 5.1% from the previous month’s 5.7%, but remains well above the central bank’s 4% target. “Given the solid growth dynamics and inflation above the 4.0% target, we do not expect policy easing anytime soon,” Moody’s said. Moody’s raises India’s 2024 GDP forecast sharply BY SWATI BHAT Reuters
TUESDAY MARCH 5, 2024 23 THEEDGE CEO MORNING BRIEF WORLD (March 4): Global fund managers are betting on Indonesian bonds as they see them as a key beneficiary of the expected Federal Reserve (Fed) easing cycle. Ashmore Group plc says Indonesia’s relatively high inflation-adjusted policy rate provides plenty of room for interest-rate cuts when the Fed starts easing. Fidelity International sees potential for carry in Indonesia’s flat yield curve. abrdn plc cites healthy government finances as the reason to buy rupiah debt. “It’s pretty hard to ignore a market like” Indonesian bonds, said Jerome Tay, an investment manager at abrdn in Singapore. They are likely to outperform their regional peers this year, he said. Indonesia’s inflation-adjusted interest rate is currently at 3.25%, the highest in Asia after the Philippines and Thailand, giving the central bank ample scope to cut borrowing costs to boost the economy. Moreover, the budget deficit at a 12- year low is also raising the appeal of the nation’s bonds. A delay in Fed rate cuts this year and concern that programs such as the freelunch plan advocated by Indonesia’s new President Prabowo Subianto have eaten into rupiah bond gains. Still their 1% decline year is the smallest loss in emerging Asia, according to data compiled by Bloomberg. “Indonesia starts with such a strong fiscal position that there is probably room to loosen up somewhat on the fiscal side without spooking markets or leading to any significant negative outcome,” said Ian Samson, a portfolio manager at Fidelity in Singapore. “Indonesian government bonds are one of, if not our top pick within the Asian duration space, particularly at that five-year part of the curve that will benefit more from nearer term easing expectations.” Gustavo Medeiros, head of global macro research at Ashmore is maintaining his overweight position in Indonesian bonds, while favouring the long end of the curve on expectations the market would be less volatile than its peers. Latam alternative The premium offered by Indonesian 10- year bonds over similar-maturity Treasuries has shrunk to near the narrowest this year, which may curb some of the overseas demand for rupiah debt. Funds may instead opt for bonds in Latin America, where central banks have already started easing. “Foreigner interest is muted because there are better yields on offer in Brazil, Mexico and Eastern Europe, as well as prospects for policy moves,” said Philip McNicholas, an Asia sovereign strategist at Robeco Group in Singapore. “Bank Indonesia has made it clear that they won’t move until the Fed does, so investors can afford to run the position at or slightly under benchmark weighting for the time being.” Global funds net purchased US$106.1 million (RM501.69 million) of Indonesian bonds on Feb 29, the most in six weeks, according to finance ministry data. Still foreigners only held about 14% of Indonesia’s total outstanding debt compared with almost 40% at the start of 2020. Rupiah stability Indonesia’s central bank has so far refrained from cutting rates as it focuses on keeping the rupiah stable, with the dollar strengthening due to rapid paring of Fed rate-cut bets. “We are aware that the domestic economy needs a boost from policy rates but we can’t adjust rates yet under current global uncertainty,” Bank Indonesia deputy governor Juda Agung said in a forum on Thursday. Still, some funds are taking steps now to prepare for when those rate cuts begin. “We see Indonesian bonds as a good way to play the global easing cycle that’s coming up partly because Indonesia is likely to follow the Fed rather closely,” Fidelity’s Samson said. Developed-market yield curves are deeply inverted, whereas the rupiah bond curve is quite flat, “which means it’s a better carry way to play for the easing cycle”, he said. Foreign funds bet on Indonesian bonds into Fed easing cycle (March 4): Singapore plans to raise the salary threshold for foreign workers from next year, as it seeks to create better and more job opportunities for locals, the Straits Times reported, citing Manpower Minister Tan See Leng. From Jan 1, 2025, foreigners will need to earn a minimum monthly salary of S$5,600 (US$4,170 or RM19,699) to qualify for an employment pass (EP), up from S$5,000, the newspaper cited Tan as saying in Parliament discussing the budget on Monday. Financial services professionals will need to earn at least S$6,200 per month, up from S$5,500, in view of the sector’s higher wage norms. The minimum qualifying salary for EP applicants in their mid-40s will increase to as much as S$10,700, and up to S$11,800 for those in the financial services sector. Singapore last year revamped its visa programme for foreigners. The city introduced a new Overseas Networks and Expertise (ONE) pass, and raised the salary threshold for other category of visas, as part of efforts to attract the best talent to the city state. Almost 4,200 One Pass applications had been approved as at Jan 1, the Straits Times said. Singapore will continue to attract top talent to grow the economy, and ensure that firms develop their local workforce and treat locals fairly, the Straits Times quoted Tan as saying. The city state is also raising its retirement age as a broader plan to maintain a sizeable working population. The retirement age will be raised by one year to 64 on July 1, 2026, the Straits Times reported. Employers will also be required to offer to re-employ workers as old as 69 years, up from 68 years. Read also: Singapore says Taylor Swift concert benefits outweigh grant Singapore to boost wage threshold for expats, raise retirement age to 64 — report BY YIHUI XIE Bloomberg BY MATTHEW BURGESS Bloomberg REUTERS
TUESDAY MARCH 5, 2024 24 THEEDGE CEO MORNING BRIEF WORLD BANGKOK (March 4): Thailand’s economy is in a critical situation, the prime minister’s chief of staff said on Monday, stressing a need for measures to tackle household debt, boost tourism and inject stimulus into the economy. “Figures show we are not in good shape,” Prommin Lertsuridej told reporters. His remarks come as Prime Minister Srettha Thavisin’s government pushes to revive Southeast Asia’s second-biggest economy, which has suffered from weak exports and a slow recovery from the pandemic compared to regional peers. The economy unexpectedly contracted in the fourth quarter of 2023 and policymakers have downgraded the growth outlook for this year, adding to pressure on the central bank to give in to the prime minister’s near-daily demands for an interest rate cut. “We are doing everything we can,” Prominn said, referring to stimulus measures including visa-free tourism and policies to address household debt that is at a rate of 91% of gross domestic product. He added the government’s annual budget should be approved and ready to spend by next month. The budget has been on hold since October due to a delay last year in forming a government. Thai economy in critical situation, PM’s aide says (March 4): Thailand plans to extend its crackdown on illegal short selling as shares remain in the doldrums, according to the stock exchange’s chairman. Market authorities are considering changing the law so they can file charges against both individuals and companies for such trades, said Pichai Chunhavajira, chairman of the Stock Exchange of Thailand. Existing rules allow only for punishment against securities companies that submit the short-selling order, he said. Thailand has joined peers such as China and South Korea in tightening curbs on short selling after about US$156 billion (RM737.65 billion) of market value was wiped out from the nation’s equities from a peak in 2023. Prime Minister Srettha Thavisin has urged market authorities to review oversight of improper transactions including short selling to boost investors’ trust and confidence. “There is an urgent need for more steps to ease investors’ concern and restore their trust,” Pichai, who was appointed as the bourse’s new chairman in February, said in an interview. “The short-term measures will revive some confidence, but we still must do more.” The stock exchange last month revealed more details about proposed stricter measures on short selling and programme trading. These include a reduction in the market value of stock allowed for short selling and increased fines for securities companies that breach Thailand weighs law change to target illegal short sellers rules. Naked short selling — selling shares without borrowing them first — is being banned. The benchmark SET Index has dropped more than 3% so far this year, among the worst in Southeast Asia, after falling 15% in 2023. Daily trading turnover is down more than 10% from a year earlier on lower orders from individual shareholders, according to data compiled by Bloomberg and the stock exchange. Short-selling transactions account for about 10% of total trading turnover, according to the exchange’s data dating back to September. The bourse began releasing the numbers after complaints about the potential link with the market slump. SET will also propose some changes in the law to facilitate the offering and trading of digital assets such as investment and utility tokens, said Pichai. Srettha has offered some guidelines for the bourse to promote itself as the trading centre for digital assets in Southeast Asia, he said without elaborating. The suggested changes to existing legislation have been proposed in discussions with the finance ministry, Securities and Exchange Commission and other law enforcement agencies, according to Pichai. BY ANUCHIT NGUYEN Bloomberg Reuters Thailand has joined peers such as China and South Korea in tightening curbs on short selling after about US$156 billion (RM737.65 billion) of market value was wiped out from the nation’s equities from a peak in 2023. BLOOMBERG
TUESDAY MARCH 5, 2024 25 THEEDGE CEO MORNING BRIEF WORLD SYDNEY (March 4): Australia said on Monday that Indo-Pacific and Southeast Asian countries are facing serious defence threats, as it set aside more funds for maritime security projects with Asean countries during a summit with regional leaders in Melbourne. Foreign Minister Penny Wong announced A$286.5 million (US$186.7 million) in funding for Asean projects in areas including maritime security, amid tensions over China’s growing assertiveness and its disputed claims to the South China Sea. “We face destabilising, provocative and coercive actions including unsafe conduct at sea and in the air,” Wong said in a speech at the summit, without naming China. “What happens in the South China Sea, in the Taiwan Strait, in the Mekong subregion, across the Indo-Pacific, affects us all.” Melbourne is hosting leaders and officials from the 10-member Association of Southeast Asian Countries (Asean) for a summit from Monday to Wednesday (March 6). Asean member Myanmar was excluded due to the ongoing conflict in the country. Australia is using the 50th anniversary of its ties with Asean to bolster ties with the region, as it deals with China’s growing diplomatic and military reach. China claims almost the entire South China Sea, a conduit for more than US$3 trillion of annual ship-borne commerce, including parts claimed by Asean members — the Philippines, Vietnam, Indonesia, Malaysia and Brunei. The Permanent Court of Arbitration in 2016 said China’s claims had no legal basis. Speaking alongside Wong, Philippines secretary of Foreign Affairs Enrique Manalo said the South China Sea was of strategic importance and had a promising future as long as “nations in the region resolved to uphold cooperation over confrontation”. Australia and the Philippines began their first joint sea and air patrols in the South China Sea in November. The Philippines is ramping up efforts to counter what it describes as China’s “aggressive activities” in the South China Sea, which has also become a flashpoint for Chinese and US tensions around freedom-of-navigation operations. Myanmar conflict Just over a month since Asean foreign ministers called for an end to the bloody conflict in member state Myanmar, hundreds of protesters gathered outside the downtown Melbourne venue to call for concrete punitive action against the military junta. Asean has barred Myanmar’s top generals from attending its meetings until they commit to a peace plan, but has stopped short of further action. The junta has been furious over what it calls Asean’s interference in its internal affairs. One activist called for international recognition of the parallel National Unity Government, which controls militias in the country. “Asean countries and Australia, please act. We need action; please don’t wait for (Asean’s) plan; it is useless,” activist Yuyu Chit said. Australia warns Southeast Asia of ‘coercive actions’ RAMALLAH, West Bank (March 4): Israeli forces swept into the Palestinians’ administrative capital of Ramallah in the occupied West Bank overnight, killing a 16-year-old in a refugee camp during their biggest raid into the city in years, Palestinian sources said on Monday. Witnesses in Ramallah said Israeli forces had driven dozens of military vehicles into the city, the headquarters of the Palestinian Authority (PA) led by President Mahmoud Abbas which exercises limited self-rule over parts of the West Bank. The Palestinian health ministry said Israeli forces shot and killed 16-year-old Mustafa Abu Shalbak while raiding Am’ari refugee camp. Reuters television footage showed military vehicles leaving the camp as troops with rifles stood nearby. The Palestinian news agency WAFA said confrontations broke out as Israeli forces stormed the camp, “during which live bullets were fired at Palestinian youths”, hitting Mustafa in the neck and chest. The Israeli military did not immediately respond to a request for comment. The Palestinian foreign ministry said Israeli occupation authorities were making lives of Palestinians in the West Bank “an unbearable hell” with actions including raids, detentions, and movement restrictions, warning of “serious risks” of plunging the West Bank into “violence and anarchy”. Israel carries out biggest Ramallah raid in years Violence has surged across the West Bank in parallel to the Gaza war, with at least 400 Palestinians killed in clashes with Israeli soldiers and settlers, and Israel regularly raiding Palestinian areas across the territory it occupied in 1967. Israeli forces also tore up a main road by the Nur Shams refugee camp in the Tulkarm area of the West Bank, witnesses said. “Every time they enter the camp they destroy more than the previous time,” said Ibrahim Hamarsheh, a resident of the camp who heads the Tulkarm branch of the Palestinian Prisoners’ Club, which advocates for Palestinians in Israeli jails. He said Israeli forces had also bulldozed roads in the camp. WAFA also reported that Israeli forces had stormed the West Bank city of Nablus, and blew up the home of a man previously accused by Israel of carrying out an attack in which a British-Israeli mother and her two daughters were killed in April in the West Bank. The man, Moaz al-Masri, was killed by Israeli forces in Nablus last May. Israeli forces detained at least 55 Palestinians in raids across the West Bank overnight, according to The Palestinian Prisoners Club. Read also: US VP Harris calls for immediate ceasefire to ease ‘humanitarian catastrophe’ in Gaza BY ALI SAWAFTA Reuters BY RENJU JOSE, LEWIS JACKSON & PRAVEEN MENON Reuters Violence has surged across the West Bank in parallel to the Gaza war, with at least 400 Palestinians killed in clashes with Israeli soldiers and settlers, and Israel regularly raiding Palestinian areas across the territory it occupied in 1967.
TUESDAY MARCH 5, 2024 26 THEEDGE CEO MORNING BRIEF WORLD (March 4): In 2019, Leung joined a Hong Kong movement to boycott Chinese-owned restaurants like many protesters opposing President Xi Jinping’s encroachment of the former British colony. Now she and her peers regularly go out of their way to the neighboring mainland city of Shenzhen for cheap food and massages. “Hong Kong used to have freedom,” said Leung, who asked to use only her last name because she joined what authorities deem as illegal protests. “Now it’s lost all that. So why wouldn’t I go to mainland China, where at least things are cheaper?” Travel to the mainland has been made more compelling by new infrastructure that cut travel times in half between the cities, a booming array of entertainment choices and low prices further driven down by China’s longest deflation streak since the Asian financial crisis. In February, Hong Kongers’ trips to Shenzhen hit a new high for that month since records began in 1984, packing the city’s subway trains and filling a new Costco Wholesale Corp. store. That’s a boon to Xi’s efforts to integrate Hong Kong with Shenzhen and nearby cities into a region called the Greater Bay Area, which Beijing hopes will challenge the Silicon Valley in terms of innovation and economic output. “It will certainly be viewed as an improvement of the Greater Bay Area integration,” said Dongshu Liu, an assistant professor specialising in Chinese politics at the City University of Hong Kong. The Shenzhen frenzy dovetails with Hong Kong residents’ growing willingness to work and live in mainland China. A survey of people under 40 in the city by the Hong Kong-Guangdong Youth Association conducted last year found 66% of them are now open to employment across the border, tripling from 22% in 2020. The increasing connectedness is changing the business landscape and social fabric of both cities, creating new winners and losers. Cantonese-speaking travelers from Hong Kong now crowd Shenzhen shopping malls every weekend. Locals in the mainland city lament long lines at spicy fish and dim sum joints. BY SHIRLEY ZHAO, ALLEN K WAN, ZHEPING HUANG, RACHEL YEO, VENUS FENG, JINSHAN HONG & ARIA CHEN Bloomberg Young Hong Kongers who defied Xi are now partying in China On holidays, Hong Kong shoppers account for as much as half of all customers at Link CentralWalk, a stylish mall next to Shenzhen’s high-speed railway station that’s a 20-minute ride from Hong Kong, said a company spokesperson. About one in three moviegoers at a cinema in that same area come from Hong Kong, Now TV reported. “Shenzhen is cheaper and has everything,” said Kit, who works in the restaurant industry in Hong Kong and goes to Shenzhen to sing karaoke with friends. Like most others interviewed in the mainland city, Kit requested to use only part of his name for privacy reasons. “Hong Kong is my home but it’s too expensive.” It’s a stunning reversal from just 10 years ago, when a surge in mainland Chinese tourists in Hong Kong spurred raucous demonstrations and complaints of overcrowding. This is all happening while mainland tourism to Hong Kong has failed to recover from pre-pandemic levels, prompting calls from some politicians and economists in the city to levy a tax on departing Hong Kongers to protect local retailers and restaurants. More than 1.2 million mainland residents came to Hong Kong over their eight-day New Year holiday starting Feb 10, down from 1.4 million during 2019’s weeklong break. “Hong Kong’s economy is suffering this way,” said Junhua Zhang, senior associate of the European Institute for Asian Studies. The growing integration of Hong Kong opens a new market for Shenzhen businesses at the expense of the Asian financial hub, he said. “That is the dark side of the Greater Bay Area scheme. The trend is in favor of mainland China.” Tourists from Hong Kong are set to spend as much as HK$84 billion (US$10.7 billion or RM50.75 billion) in Shenzhen and the rest of Guangdong province this year, according to an estimate by Gary Ng, senior economist at Natixis SA. That’s about 14% of Hong Kong’s revenue from retail sales, catering services and hospitality. Mainland tourism to Hong Kong has failed to recover from pre-pandemic levels, prompting calls from some politicians and economists in the city to levy a tax on departing Hong Kongers to protect local retailers and restaurants. Read the full story
TUESDAY MARCH 5, 2024 27 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (March 1, 2024) CAPESIZE The week started with a modest increase on the BCI 5TC, accompanied by steady activity in the Pacific and relatively calm conditions in the Atlantic. As the days progressed, the Pacific market saw increased activity and rising rates, particularly highlighted by a significant surge mid-week, driven by strong cargo demand. There were reports of more than 10 vessels fixed from West Australia to China, resulting in the C5 index rising by US$1.075 to US$12.160. In the Atlantic there was an influx of new cargo for both trans-Atlantic and fronthaul which helped to bolster sentiment with a market that already had limited availability of tonnage. Reports of robust fixtures led to a significant uptick in the C9 index, which rose by US$2,562 to reach US$53,375, and the C8 index, which climbed by US$5,496 to US$32,173. From South Brazil and West Africa to the Far East there was a noticeable difference between the bid and offer price, resulting in limited activity although optimism persisted, as evidenced by the C3 index’s rise of US$1.205 to US$27,465. As the week comes to an end this positive trend has persisted, albeit at a somewhat slower pace, as reflected in the C5 index today edging up by 0.875 to 13.645 and the C3 index which has risen by 0.872 to US$28.767. All in all, it has been a very positive end to the week as evidenced by the BCI 5TC which started the week at US$26,233 and has ended at US$32,985. PANAMAX It was an eventful week with the market trend moving one way and then the other. The week began on a negative tone, sparked into life mid-week with an FFA drive only to level off as the week ended. In the Atlantic, it was a less than clear picture in the North with minimal trans-Atlantic activity with rates under pressure all week, conversely decent mineral and grain demand for fronthaul trips lent some support to rates here. EC South America found support for early April arrival dates, US$18,000 concluded a few times for 82,000-dwt types delivery to India for trips via EC South America redelivery Far east. In Asia, good levels of cargo replenishment were witnessed all week, driving rates forward as tonnage was cleared out both in the south and the north of the basin. A solid week too for period with various deals concluded as the nearby optimism in the market persisted. ULTRAMAX/SUPRAMAX Positivity was seen across the Asia Markets. A 64,000-dwt fixed from Caofeidian via Indonesia to EC India-Bangladesh at US$15,000 whilst a 62,000-dwt fixed from the Philippines via Indonesia to Thailand at US$20,000. Nopac was also active, an Ultramax linked to fixing from South Korea via Nopac to Bangladesh at US$14,650. In South Africa, a 66,000-dwt fixed from Port Elizabeth to Singapore-Japan at US$28,000 plus a US$280,000 ballast bonus. The Atlantic was more subdued with a lack of fresh enquiry. A 63,000-dwt was fixed from SW Pass via the Cape of Good Hope to Japan with grains at US$28,000. A 64,000-dwt fixed from Southampton to the Eastern Mediterranean with scrap at US$19,000 and a 63,000-dwt fixed from Mersin to Abidjan with a cargo of clinker at US$15,000. Period activity remained with a 58,000-dwt opening in Kwangyang fixing for seven to nine months with PG-Japan redelivery at US$15,400 whilst a 63,000-dwt open in Mundra fixed for a minimum of five months to max Oct 15 at US$19,600. HANDYSIZE The South Atlantic showed signs of positivity as water levels in the River Plate improved, a 38,000-dwt was fixed for midMarch dates basis delivery Recalada to Algeria at US$17,000 whilst a 37,000-dwt fixed from Recalada to WC South America at around US$25,000. The Continent and Mediterranean were said to be balanced with a 39,000-dwt fixing from Bourgas to Spain at US$15,000 whilst pressure remained on the tonnage in the US Gulf due to a lack of enquiry, a 36,000-dwt fixed from Key West via the US Gulf to Turkey at US$9,250. In contrast, rates have been steadily climbing across the Asia markets with limited tonnage availability as a main factor. A 42,000-dwt opening in Japan fixed via Nopac for a round voyage to Japan at US$13,000 and a 37,000-dwt opening in Chiba fixed for a similar trip at US$12,750. A 32,000-dwt fixed from Semarang via Australia to Taiwan with an intended cargo of salt at US$15,000. CLEAN LR2 LR freight levels in the MEG continued downward this week. The 75kt MEG/Japan TC1 index lost 20% of its value to WS144.72. The 90kt MEG/UK-Continent TC20 trip to the UK-Continent also came down to the tune of US$556,250 leaving the index currently at US$4.47 million. West of Suez, Mediterranean/East LR2 freight took a hit this week as the prolonged hiatus of activity continued. TC15 subsequently went from US$5.8 million to US$4.9 million for the run. LR1 In the MEG, LR1 freight continued to be tested down this week. The 55kt MEG/Japan index of TC5 dropped to WS174.38 (-WS34.37). The 65kt MEG/UK-Continent of TC8 came off another US$399,000 this week to rest currently at US$3.92 million. On the UK-Continent, the 60kt ARA/ West Africa TC16 trip was flogged down this week seen in the index losing 25.94 points to WS187.81. Read the full report
TUESDAY MARCH 5, 2024 28 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) TWL HOLDINGS BHD 153.20 0.000 0.035 16.67 192.3 HARVEST MIRACLE CAPITAL BHD 143.10 -0.010 0.140 16.67 171.6 HONG SENG CONSOLIDATED BHD 140.60 0.000 0.015 -40.00 76.6 WIDAD GROUP BHD 60.30 -0.010 0.110 -77.32 340.6 JAKS RESOURCES BHD 57.80 -0.020 0.155 -16.22 367.3 VELESTO ENERGY BHD 55.90 0.005 0.290 26.09 2,382.5 CIMB GROUP HOLDINGS BHD 42.30 0.110 6.450 10.26 68,789.9 SP SETIA BHD GROUP 37.00 0.050 0.895 11.88 3,983.8 MY EG SERVICES BHD 31.40 -0.015 0.795 -2.45 5,930.3 YTL CORP BHD 29.90 0.070 2.670 41.27 29,277.6 FITTERS DIVERSIFIED BHD 28.90 0.000 0.050 0.00 117.1 EKOVEST BHD 24.90 -0.005 0.450 -8.16 1,334.4 D’NONCE TECHNOLOGY BHD 24.50 0.000 0.080 -42.86 36.9 PUBLIC BANK BHD 23.80 -0.060 4.300 0.23 83,466.0 MALAYAN BANKING BHD 22.90 0.150 9.600 7.99 115,842.7 RGB INTERNATIONAL BHD 22.80 -0.010 0.305 12.96 470.0 YTL POWER INTERNATIONAL BHD 22.50 0.020 3.940 55.12 31,926.4 DIALOG GROUP BHD 20.80 0.000 2.150 3.86 12,131.5 EDUSPEC HOLDINGS BHD 20.70 0.010 0.120 26.32 140.7 TDM BHD 19.10 -0.015 0.240 33.33 413.5 Data as compiled on Mar 4, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.010 100.00 15,910.3 100.00 108.2 SC ESTATE BUILDER BHD 0.015 50.00 812.2 -3.57 48.3 FOCUS DYNAMICS GROUP BHD 0.015 50.00 1,558.8 0.00 95.6 ZEN TECH INTERNATIONAL BHD 0.020 33.33 981.5 0.00 53.3 BSL CORP BHD 0.030 20.00 1,046.1 -33.33 57.9 XIDELANG HOLDINGS LTD 0.030 20.00 302.3 20.00 63.5 TA WIN HOLDINGS BHD 0.035 16.67 7,980.2 -12.50 120.2 MENTIGA CORP BHD 0.650 14.04 2.5 -7.14 45.5 WMG HOLDINGS BHD 0.170 13.33 6,680.0 70.00 75.6 CORAZA INTEGRATED TECHNOLOGY 0.475 11.76 6,947.4 9.20 234.5 ESTHETICS INTERNATIONAL GROUP 0.350 11.11 0.3 2.94 83.0 SAPURA ENERGY BHD 0.050 11.11 9,755.2 11.11 918.8 PERMAJU INDUSTRIES BHD 0.050 11.11 100.0 0.00 97.4 CHINA OUHUA WINERY HOLDINGS 0.050 11.11 48.0 -9.09 33.4 MAJUPERAK HOLDINGS BHD 0.320 10.34 0.1 -4.48 91.0 DESTINI BHD 0.055 10.00 8,546.8 -8.33 108.1 VINVEST CAPITAL HOLDINGS BHD 0.055 10.00 6,529.7 -8.33 53.3 ORIENTAL FOOD INDUSTRIES HOLDINGS 2.050 9.63 3,529.5 26.54 492.0 WHITE HORSE BHD 0.810 9.46 1,215.9 28.57 178.6 FLEXIDYNAMIC HOLDINGS BHD 0.175 9.38 205.0 -12.50 49.8 Data as compiled on Mar 4, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA HOLDINGS BHD 0.005 -50.00 1,100.0 -50.00 32.3 FINTEC GLOBAL BHD 0.005 -50.00 332.9 -50.00 29.6 KEY ALLIANCE GROUP BHD 0.005 -50.00 218.5 -50.00 18.4 COMPUGATES HOLDINGS BHD 0.010 -33.33 5.0 -33.33 55.0 METRONIC GLOBAL BHD 0.015 -25.00 3,510.0 0.00 23.0 G3 GLOBAL BHD 0.020 -20.00 189.6 -20.00 75.5 UNIQUE FIRE HOLDINGS BHD 0.245 -15.52 17,201.1 -22.22 98.0 ZELAN BHD 0.055 -15.38 2,734.7 -31.25 46.5 JAKS RESOURCES BHD 0.155 -11.43 57,839.6 -16.22 367.3 PDZ HOLDINGS BHD 0.045 -10.00 3,065.3 -10.00 26.5 RAY GO SOLAR HOLDINGS BHD 0.180 -10.00 1.0 0.00 45.9 Y&G CORP BHD 0.650 -9.72 0.4 -22.62 142.0 SILVER RIDGE HOLDINGS BHD 0.295 -9.23 4,006.4 -74.35 65.7 PERAK CORP BHD 0.400 -9.09 13.1 -16.67 40.0 PUC BHD 0.050 -9.09 15,920.9 25.00 123.4 COUNTRY HEIGHTS HOLDINGS BHD 0.250 -9.09 3,422.9 -23.08 73.4 CYBERJAYA EDUCATION GROUP BHD 0.100 -9.09 3,127.4 -20.00 167.9 VSOLAR GROUP BHD 0.150 -9.09 13,919.5 -33.33 24.2 IREKA CORP BHD 0.355 -8.97 143.6 -31.07 80.9 WIDAD GROUP BHD 0.110 -8.33 60,316.9 -77.32 340.6 Data as compiled on Mar 4, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 121.000 -2.400 76.4 2.89 28,374.5 FRASER & NEAVE HOLDINGS BHD 29.200 -0.320 153.2 4.31 10,709.9 HONG LEONG INDUSTRIES BHD 10.000 -0.200 233.6 8.58 3,194.7 MALAYSIAN PACIFIC INDUSTRIES 28.820 -0.180 150.9 2.20 5,733.2 KLCCP STAPLED GROUP 7.400 -0.150 15.0 4.37 13,359.5 HONG LEONG FINANCIAL GROUP 16.720 -0.120 57.9 1.70 19,148.5 GREATECH TECHNOLOGY BHD 4.700 -0.110 274.9 -2.08 5,894.7 TENAGA NASIONAL BHD 11.200 -0.100 5,295.0 11.55 64,818.1 BATU KAWAN BHD 19.500 -0.100 27.1 -5.34 7,670.3 IHH HEALTHCARE BHD 6.050 -0.090 2,799.6 0.33 53,282.3 EDARAN BHD 1.090 -0.090 1,497.6 25.29 63.1 ITMAX SYSTEM BHD 2.250 -0.080 5,282.2 25.70 2,315.3 TELEKOM MALAYSIA BHD 5.910 -0.080 8,845.4 6.49 22,680.4 CARLSBERG BREWERY MALAYSIA 18.900 -0.080 328.5 -1.97 5,778.6 MALAYSIA AIRPORTS HOLDINGS 8.420 -0.070 1,630.6 14.40 14,049.2 MCE HOLDINGS BHD 1.620 -0.070 731.4 12.50 200.2 UWC BHD 3.260 -0.070 248.1 -7.39 3,592.4 SPRITZER BHD 2.050 -0.070 389.6 12.02 654.6 Y&G CORP BHD 0.650 -0.070 0.4 -22.62 142.0 SURIA CAPITAL HOLDINGS BHD 1.900 -0.070 700.1 -1.55 657.1 Data as compiled on Mar 4, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) UNITED PLANTATIONS BHD 24.000 0.920 882.6 34.83 9,954.8 HEINEKEN MALAYSIA BHD 23.300 0.540 290.7 -3.48 7,038.9 AMWAY MALAYSIA HOLDINGS BHD 7.560 0.350 191.6 28.57 1,242.8 ALLIANZ MALAYSIA BHD 19.080 0.340 52.3 3.47 3,395.7 KUALA LUMPUR KEPONG BHD 22.320 0.280 971.9 2.29 24,471.8 AJINOMOTO MALAYSIA BHD 17.480 0.240 41.2 9.94 1,062.8 PARAGON UNION BHD 3.820 0.220 194.7 36.92 320.2 ORIENTAL FOOD INDUSTRIES HOLDINGS 2.050 0.180 3,529.5 26.54 492.0 MALAYAN BANKING BHD 9.600 0.150 22,935.1 7.99 115,842.7 VSTECS BHD 1.790 0.140 1,489.6 35.61 638.2 CIMB GROUP HOLDINGS BHD 6.450 0.110 42,301.3 10.26 68,789.9 TIME DOTCOM BHD 5.400 0.100 2,512.0 0.00 9,983.6 PETRONAS GAS BHD 17.920 0.100 801.0 2.99 35,458.9 GE-SHEN CORP BHD 2.830 0.090 365.8 143.97 345.4 ICAPITAL.BIZ BHD 2.890 0.080 198.1 3.21 404.6 NPC RESOURCES BHD 1.840 0.080 8.2 2.22 209.3 MENTIGA CORP BHD 0.650 0.080 2.5 -7.14 45.5 WHITE HORSE BHD 0.810 0.070 1,215.9 28.57 178.6 EITA RESOURCES BHD 0.920 0.070 5,542.2 22.67 277.7 SUNWAY CONSTRUCTION GROUP 2.560 0.070 2,136.0 31.96 3,300.8 Data as compiled on Mar 4, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 39,087.38 90.99 0.23 S&P 500 * 5,137.08 40.81 0.80 NASDAQ 100 * 18,302.91 259.06 1.44 FTSE 100 * 7,682.50 -22.96 -0.30 AUSTRALIA 7,735.79 -9.82 -0.13 CHINA 3,039.31 12.28 0.41 HONG KONG 16,595.97 6.53 0.04 INDIA 73,872.29 66.14 0.09 INDONESIA 7,276.75 -35.16 -0.48 JAPAN 40,109.23 198.41 0.50 KOREA 2,674.27 31.91 1.21 PHILIPPINES 6,951.67 32.08 0.46 SINGAPORE 3,122.21 -13.55 -0.43 TAIWAN 19,305.31 369.38 1.95 THAILAND 1,362.57 -4.85 -0.35 VIETNAM 1,261.41 3.13 0.25 Data as compiled on Mar 4, 2024 Source: Bloomberg CPO RM 3,940.00 -26.00 OIL US$ 83.57 0.02 RM/USD 4.7225 RM/SGD 3.5157 RM/AUD 3.0808 RM/GBP 5.9870 RM/EUR 5.1235 * Based on previous day’s closing
CEOMorningBrief TUESDAY, MARCH 5, 2024 ISSUE 727/2024 theedgemalaysia.com
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 TUESDAY MAR 5, 2024 SCAN ME No. 8472 PP 2644/12/2012 (031195) TheSun now available at selected 7-Eleven outlets on Penang island, Taiping & Kamunting (Perak) In his address at the end of his term on Feb 15 as National Council of Islamic Religious Affairs Malaysia chairman, His Royal Highness the Sultan of Selangor Sultan Sharafuddin Idris Shah spoke on various matters involving Islam, its practices and his expectations of religious and Muslim scholars in maintaining good etiquette when expressing points of view. The full text of his speech is featured on P2 and P3. Words of wisdom 18,326 child abuse cases recorded in six years Look beyond ‘green’ logo - Report on page 4 COMMON GROUND ... Prime Minister Datuk Seri Anwar Ibrahim with his Australian counterpart Anthony Albanese at a joint press conference after the 2nd Malaysia-Australia Annual Leaders Meeting at the Government House in Melbourne yesterday. – BERNAMAPIC Report on hpage 4 An image of a leaf printed on food packaging may suggest it is associated with natural or healthy ingredients, but that does not guarantee its nutritional value: Nutritionist More than 16,000 reports involved rape, physical sexual assault and incest, says Women’s Centre for Change. Report on hpage 5 Keep prices reasonable, food fest traders told Report on hpage 7 Domestic Trade and Cost of Living Ministry does not set rules for prices of items sold, but traders subject to Price Control and Anti-Profiteering Act 2011, says enforcement DG.
TUESDAY | MAR 5, 2024 2 Strengthen syariah court and avoid politicising religion: Sultan Sharafuddin AS we are aware, on Feb 9, the Federal Court through a majority decision of 8-1 declared that 16 syariah criminal offences under the Syariah Criminal Code (1) 2019, Kelantan, are void and invalid. The ruling stemmed from the Kelantan State Legislative Body enacting laws on issues beyond its legislative authority, specifically pertaining to matters under the Federal List, which falls solely within the jurisdiction of Parliament to legislate. The Federal Court ruling has affirmed that the legal principles applied in interpreting the issue are unequivocal and resolute. To ascertain the validity of a law enacted by Parliament or a state legislative body and determine whether it falls within their legislative jurisdiction, the “pith and substance” of the provisions in question are examined. In essence, if the provisions made by the state legislative body pertain to matters within the Federal List, then it lacks the authority to enact those laws. This principle is illustrated in Item 1 of List II (State List) in the Ninth Schedule of the Federal Constitution, which grants state legislative bodies the power to enact laws for the establishment and punishment of offences committed by those professing the Islamic religion against the tenets of that religion, excluding matters included in the Federal List, over which Parliament holds legislative authority. Numerous parties, including politicians, legal experts, academics and citizens, have offered various comments and interpretations on the verdict of the case. While some comments offer accurate explanations of the implications of the decision, others are influenced by the controversies of certain factions, leading to k In his address at the end of his term on Feb 15 as National Council of Islamic Religious Affairs Malaysia chairman, His Royal Highness the Sultan of Selangor Sultan Sharafuddin Idris Shah Al-Haj ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Al-Haj spoke on various matters involving Islam, its practices and his expectations of religious and Muslim scholars in maintaining good etiquette when expressing points of view. In giving his guidance, His Royal Highness touched on the use of the word ‘Allah’ and said religious matters need not be argued openly but be resolved through consultation, and differences of opinion can be overcome through the proper channels with orderliness, wisdom and fairness to all parties involved. His Royal Highness expressed firm belief that one of the cornerstones of strength to be collectively embraced by all citizens of this country is the practice of living in harmony, fostering unity and extending respect and support to one another. He admonished politicians across the board and called for a stop to their decades-long exploitation of Islam for political purposes, which he said is a trend that has intensified in recent times. He added that when Muslims unite for the betterment of the Muslim community, they earn the respect of non-Muslim communities as well. The following is the text of the address. misunderstandings among Muslims in the country. Some have labelled the Federal Court decision a “Black Friday” moment for Islamic criminal law in the nation. I refrain from engaging in this polemic. In my view, it is crucial for all parties to respect the verdict of the Federal Court, and Malaysians must consistently uphold the position of the Federal Constitution as the paramount law of the land. To address this issue, the focus should be on our collective efforts to find solutions to the challenges that arise. This involves exploring avenues to enhance the jurisdiction of state legislative bodies to legislate syariah criminal laws within the framework provided by the Federal Constitution. These efforts may include assessing the necessity of proposing amendments to specific provisions of the Federal Constitution and/or federal laws to ensure that the authority of state legislative bodies to legislate syariah criminal laws is clearly outlined without ambiguity. I have been informed that the Special Committee to Study Issues Related to the Competence of the State Legislative Assembly to enact Islamic laws, established on my command during the 70th National Council of Islamic Religious Affairs Malaysia meeting on Aug 28, 2023, is currently examining this issue. I have also been informed that four main issues have been identified by the special committee for examination, namely: a) identifying issues related to the competence of the state legislative body to enact Islamic laws and the jurisdiction of the syariah court as provided under Item 1 of List I, State List to the Ninth Schedule, Federal Constitution; b) implementing studies on issues related to competence, including analysis of existing laws comprehensively, reviewing decisions of the highest courts, and discussing these issues in detail; c) proposing and making suggestions on the best and harmonious coordination methods regarding the competence of the state legislative body to enact Islamic laws and the jurisdiction of the syariah court in line with the Federal Constitution; and d) studying methods to strengthen the jurisdiction of the syariah court. The special committee has been granted a one-year period from its establishment to formulate recommendations for the council, that will subsequently be presented to the Conference of Rulers for examination and approval. I call upon and urge all stakeholders, including legal experts, to support this special committee by providing informed, substantive and practical suggestions to aid their endeavours. I recognise the weighty responsibility entrusted to the special committee. However, I am confident that with the expertise and qualifications of its members, and with the blessings of Allah, a resolution can be reached for the benefit of all parties, particularly the Muslim community in this country. In the meantime, I implore all parties, especially Muslims, to remain composed and refrain from causing disturbances while awaiting recommendations from the special committee regarding this matter. Furthermore, an essential agenda in bolstering syariah legislation and judicial institutions involves the advancement of professional, knowledgeable, competitive and integrity-driven human capital to realise comprehensive human capital development. I have been informed that the Malaysian Syariah Judiciary Academy has been established to achieve this objective. It has come to my attention that the concept of establishing the academy originated two decades ago during the 19th Meeting of Syariah Chief Judges in 2001. Following this, the concept garnered approval during the 48th National Council of Islamic Religious Affairs Malaysia meeting and the Conference of Rulers, both held in 2009. The report which appeared in theSun on March 1.
TUESDAY | MAR 5, 2024 3 The establishment of the Malaysian Syariah Judiciary Academy will proceed according to two new avenues. First, by pursuing an application for the construction of the academy through Rolling Plan 5 (RP5 Year 2025, 12th Malaysia Plan), and second, by operating it through the Budget Initiative 2024, as announced by Prime Minister Datuk Seri Anwar Ibrahim during the presentation of the 2024 Budget on Oct 13, 2023. Initially, the academy will be set up on an interim basis utilising funding from the 2024 Budget Initiative. 0 Islamic education intervention Since its inception, one of the primary focus of the National Council of Islamic Religious Affairs Malaysia has been Islamic education. At a certain point, there was a trend among the Muslim community in Southeast Asia to send young individuals abroad to pursue studies at Islamic education centres and tahfiz institutions, despite Malaysia’s reputable status in Islamic knowledge development. In response to this trend, the concept of establishing an organisation to coordinate and enhance the Islamic education system, particularly for institutions not under the purview of the Education Ministry, was conceived. This organisation, previously known as the Board and Adviser for the Coordination of Islamic Studies, was further strengthened in accordance with the new structure of the council and renamed the National Islamic Education Coordination Committee. To date, several challenging issues persist in the realm of Islamic education, including curriculum alignment for religious public schools, educator qualifications, infrastructure concerns in private schools, and the education system within tahfiz and Islamic boarding schools. This also encompasses the prospects for students in private Islamic educational institutions to further their education and improve their employability. Addressing these challenges has led to significant advancements in Islamic education, such as the establishment of the Integrated Early Curriculum (Kurikulum Bersepadu Dini) and the Integrated Tahfiz Curriculum (Kurikulum Bersepadu Tahfiz). Presently, the tahfiz curriculum has gained recognition as the primary curriculum in secondary schools under the Education Ministry. Ongoing efforts are directed towards enhancing Islamic education, with the Department of Islamic Development Malaysia formulating the National Tahfiz Education Policy (Dasar Pendidikan Tahfiz Negara) alongside its corresponding action plan. Through the National Tahfiz Education Policy Action Plan, the Tahfiz Intervention Model has been successfully introduced, enabling private tahfiz students to integrate into mainstream classes and register as candidates for the Sijil Pelajaran Malaysia examination. It is noteworthy that there exists four models of Malaysian tahfiz education: the science tahfiz model, the traditional tahfiz model, TVET tahfiz model and the tahfiz intervention model. I advocate religious authorities in the states to select the appropriate tahfiz education model, taking into account the prospects for future education and career opportunities that resonate with the aspirations of the current generation. Furthermore, I stress the importance of emphasising the Arabic language subject across these four tahfiz models, ensuring that tahfiz students not only excel in Quran memorisation but also possess the skills to provide accurate interpretations of its verses. 0 Socioeconomic empowerment of the Muslim community Since its establishment in 1968, the National Council of Islamic Religious Affairs Malaysia has successfully introduced various new initiatives that have boosted the country’s economic development, especially concerning the socioeconomic empowerment of the Muslim community. The establishment of Bank Islam, the use of the halal label, the creation of the Malaysian Islamic Economic Development Foundation (Yayasan Pembangunan Ekonomi Islam Malaysia), and the organised management of Baitulmal are examples of innovations brought about by the council, all based on syariah principles. The success of various socioeconomic initiatives for the Muslim community initiated by the council demonstrates that a more comprehensive approach to the country’s economic development can benefit the Muslim community as a whole. Considering the current situation, zakat (charitable giving) and wakaf (endowment) are instruments that can reduce significant economic disparities and directly aid the Muslim community in Malaysia. It is informed that the total zakat collection throughout Malaysia in 2022 amounted to RM4.27 billion, while the cash wakaf collection was only RM106 million. The significant difference between zakat and wakaf collections justifies a new approach to increase cash wakaf collections for the benefit of the Muslim community in the country. 0 Empowerment of wakaf management in Malaysia The establishment of the Wakaf, Zakat and Haj Department in 2004 and Malaysia Waqaf Foundation in 2008 has accelerated the implementation of wakaf land development activities and economic-social wakaf financing in this country. The partnership and strategic collaboration between these two federal agencies and the State Islamic Religious Council have led to the establishment of 18 wakaf land development projects across the country since the 9th Malaysia Plan, with ongoing efforts in the 12th Malaysia Plan. A total expenditure of RM315 million has been allocated to the development of all wakaf projects, encompassing various areas such as wakaf welfare, economy, education, housing, and health. Furthermore, the coordinated digitisation of cash wakaf initiatives by federal and state Islamic religious agencies has positively impacted the provision of funds for wakaf activities in Malaysia. Additionally, efforts to streamline wakaf legalisation and governance have been undertaken. One such effort includes the publication of wakaf management guidebooks or manuals under Wakaf, Zakat and Haj Department, significantly aiding the State Islamic Religious Council in enhancing wakaf management. Presently, there are nine enactments, rules, and ordinances related to wakaf that have been enforced. This constructive progress can enhance public confidence in the wakaf governance system in Malaysia. 0 Efforts to identify a new form of wakaf for the progress of the Muslim community Wakaf development extends beyond religious and welfare realms. There is ample opportunity for innovation in wakaf initiatives to delve into various socioeconomic development areas such as entrepreneurship, services, environmental conservation and housing. I am confident and trust that both federal and state governments are continually striving to explore novel forms of wakaf. Therefore, legal studies aimed at accommodating current demands while adhering to syariah requirements need to be harmonised. In the effort to empower wakaf in Malaysia, the management and development of wakaf needs to be strengthened so that wakaf instruments can play a part in the third sector of the national economy. To achieve this goal, the federal government, through the Wakaf, Zakat and Haj Department and the Malaysia Waqaf Foundation, is in the final stages of preparing the National Wakaf Master Plan 2025-2030. This master plan will serve as a guiding framework for the implementation of wakaf development activities across the country. The support and cooperation of all parties, particularly the State Islamic Religious Council as the primary trustee, are essential to ensure the success of wakaf development efforts throughout Malaysia. I am grateful that throughout my time at the National Council of Islamic Religious Affairs Malaysia, I did my best to implement what is best for the Muslim community in this country. I emphasised the need for efficiency and wisdom in the management of Islamic administrative institutions in this country to be enhanced and improved. I have always reminded the Muslim community to always avoid disputes, conflicts, and slander among themselves until it leads to divisions that are detrimental to the Muslim community. The government and religious institutions must always be alert and take serious note of threats that may threaten the sanctity of Islam and bring setbacks to the entire Muslim community. I would like to advise Muslims in this country, especially the religious scholars and Islamic scholars to always maintain good etiquette when expressing a point of view to avoid confusion among the Muslim community. We don’t need to openly argue about matters that can be resolved through consultation both in the open and in private. We need to celebrate differences of opinion and resolve these tactful differences of opinion through the proper channels. The people, especially Muslims, always look up to Islamic scholars and religious leaders, expecting decisions related to Islamic law that can be agreed upon by all. Therefore, it is my hope that my recommendations and advice will be used as a guide towards the unity and well-being of the Muslim community in this country. Furthermore, I wish to offer guidance regarding the exploitation of religion for political gain. The Muslim community is acutely aware that religious matters have frequently been exploited for political purposes in recent decades, a trend that has intensified in recent times. This exploitation has led to increased hostility, misunderstanding, and confusion within the Muslim community. We must cease engaging in divisive arguments under the guise of religion. Now is the time for Muslims to come together in unity for the betterment of the Muslim community. When Muslims stand united, they earn the respect of non-Muslim communities. Moreover, the administration of Islamic affairs in our country must be shielded from the influence of political parties and the practice of politicising every religious matter. My admonition is not directed towards any specific party, but I urge all politicians to refrain from exploiting every issue related to Islam for political gain, as this only leads to futile political discord. Religious matters hold great sensitivity for the Muslim community, and it is essential that we refrain from casting accusations at one another under the guise of religious issues. Instead, let us come together as one to resolve these matters collaboratively. I also hope that the practice of appointing the religious affairs minister from among nonpoliticians, that is currently in place, can be continued to ensure issues related to Islamic affairs will not be political material, and that full attention will be given by the religious affairs minister in solving various issues that involve the Muslim community. I would also like to suggest that the academic qualification of an Islamic Education Degree be the main criterion in appointing the religious affairs minister. Sultan Sharafuddin chairing the 71st meeting of the National Council of Islamic Religious Affairs Malaysia in Putrajaya on Feb 15. Also present was Prime Minister Datuk Seri Anwar Ibrahim. – BERNAMAPIC See also — page 7
TUESDAY | MAR 5, 2024 4 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper ‘Not all plant-based foods of high quality’ PETALING JAYA: In today’s healthconscious society, many are opting to cut out or cut down on meat intake and opt to purchase groceries with the “green leaf logo”, in the belief that plant-based diets translate to a healthier lifestyle. However, plant-based nutritionist Anna Lees told theSun that a green leaf logo is no guarantee that one will purchase a nutritious product. Lees, who has been assisting her clients to manage lifestyle-related diseases through dietary adjustment for the past six years, said: “While a green leaf logo might suggest that a product is associated with natural or healthy ingredients, it does not necessarily guarantee the overall nutritional value of the product. “Nutritional value depends on various factors such as how the produce is grown, harvested, stored and processed. “It’s essential to look beyond the logo and to factors such as organic certification, farming practices, and nutritional information on the packaging or by the seller, to assess the nutritional value of a product,” she said. According to Rakuten Insight’s 2021 report on plant-based food alternatives, 68% of Malaysian respondents have consumed oConsuming excessive amounts of processed food such as vegan burgers, faux meat could lead to chronic health issues: Expert █ BYSIVANISVARRY MORHAN [email protected] plant-based alternatives to animal-based food products. Despite the popularity of processed plant-based products in Malaysian markets, Lees cautioned that mindful consumption is critical to mitigate the potential health risks associated with their unregulated intake. “The health benefits of adopting a plant-based diet are numerous and well-documented. However, similar to the ‘green leaf logo,’ not all plant-based foods are of high quality. While some may offer valuable nutritional support, others may be of lower quality or even ineffective. “Processed plant-based products, plant-based supplements, refined grains, sugary snacks and fried foods can still be part of a plant-based diet, but they may not contribute to overall health.” Lees said it is crucial to exercise caution and conduct thorough research before incorporating any plant-based products into a diet regimen. She said transitioning to a proper plant-based diet can lower the risk of cardiovascular diseases and type two diabetes due to the higher intake of fibre, antioxidants and phytonutrients. “However, consuming excessive amounts of processed plant-based products, such as vegan burgers, faux meats, and dairy-free desserts, can lead to weight gain, poor nutrient intake, and an increased risk of chronic diseases.” Referring to the Statista Q report on Big Data solutions, Lees said the meat substitutes market in Malaysia is expected to expand by 8.65% annually until 2028, reaching a market volume of approximately RM96.48 million in the same year. “While such products may offer convenience and mimic the taste and texture of animal-based counterparts, they often contain added sugars, unhealthy fats, sodium, and artificial additives.” Lees said that a common misconception among consumers is the belief that vegan diets are costly, so they often opt for market products without knowing their ingredients. “Some fancy vegan options may come with a hefty price tag, but preparing meals at home using basic ingredients like locally sourced fruits, vegetables such as beans and grains can be more economical than purchasing ready meals from restaurants or eateries.” For a balanced approach to plant-based diets, Lees emphasised the importance of education, diversity in food choices, and collaboration among healthcare professionals to support individuals who wish to adopt healthier dietary habits. “More individuals are embarking on lifestyle changes, and with accurate information and practical guidance, they will reap the benefits of plant-based nutrition while promoting environmental sustainability and animal welfare. “While supplements can be a useful tool for meeting specific nutrient needs, it should complement a well-balanced diet rather than serve as a substitute for whole foods,” she said. Malaysia willing to revisit MH370 case MELBOURNE: Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is willing to reopen the investigation into the missing Malaysia Airlines flight MH370 if fresh and compelling evidence emerge. “It is an issue affecting the lives of people and whatever needs to be done must be done,” he told a joint press conference with Australia’s Prime Minister Anthony Albanese here yesterday in conjunction with his official visit to Australia. The conference preceded the second Malaysia-Australia Annual Leaders’ Meeting, the first face-to-face meeting between Malaysian and Australian leaders and top government officials since its inception in 2021. March 8 marks the 10th anniversary of the disappearance of MH370. The aircraft carrying 239 people disappeared from radar on March 8, 2014 while flying from Kuala Lumpur to Beijing. Albanese acknowledged the grief the families felt. – Bernama Syariah lawyers urged to promote unity KUALA LUMPUR: Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar hopes that all syariah lawyers can strengthen unity and maintain self-discipline to enhance the syariah legal and judicial institutions in this country. He also expressed hope that syariah lawyers and judicial institutions would move forward together to ensure the integrity of the syariah legal and judicial system. “As the minister responsible for Islamic affairs, including syariah law and justice in this country, I am always open to constructive feedback and suggestions, especially regarding the management of the syariah courts,” he said in an Instagram post. Mohd Na’im also congratulated the Malaysian Syariah Lawyers Association and the Federal Territories Syariah Lawyers Association for taking the initiative to organise the Syariah Lawyers Sports Programme on Sunday. – Bernama Govt mulls centralised complaint handling system KUALA LUMPUR: The government is studying the proposed centralisation mechanism for receiving complaints of inappropriate behaviour and providing protection to informants under the Whistleblowers Protection Act 2010 (Act 711). Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M. Kulasegaran said the proposed amendments and improvements to the Act would enable the exclusive and effective implementation of informant protection. “This will further create a neutral, more transparent and unbiased environment in handling complaints of misconduct from informants. “These proposed amendments involve the establishment of a centralised agency with special training and procedures to protect whistleblowers and be able to resolve all matters related to Act 711,” he said during a question and answer session in the Dewan Rakyat yesterday. He was replying to Ramkarpal Singh (PH-Bukit Gelugor) who wanted to know whether the government intends to improve the Whistleblower Protection Act 2010 to encourage more people to report corrupt activities. Kulasegaran said the proposed centralisation of receiving complaints also aims to ensure the focus on more organised and clear workflow procedures for both the centralised agency and enforcement agencies to avoid confusion in their respective duties. He said the proposal is scheduled to be tabled in Parliament. “This is one of the government’s initiatives to combat the abuse of power, corruption and breach of integrity in society, especially in public and private organisations. “This proposal is believed to assist the government in creating a Madani society that will consistently reject corrupt practices and integrity violations in everyday life,” he said. He believes that amendments to Act 711 will enable the government to strengthen good governance and increase public confidence in efforts to combat corruption as a whole. – Bernama Boycott only hurting local workers: Berjaya founder OKINAWA: Malaysians should stop the boycott of Starbucks Malaysia because it is only hurting the people, said Berjaya Corporation Bhd founder and adviser Tan Sri Vincent Tan. “I think all those who are boycotting Starbucks Malaysia should know that it is a Malaysia-owned company. We don’t even have one foreigner working in the head office. In the stores, 80% to 85% of employees are Muslims. This boycott doesn’t benefit anyone. “Yes, it has some impact on us but now at least it is improving, and like I said it’s all Malaysian owned, it’s run by Malaysian. It’s just a franchise, it’s not owned by an American,” he said during a media meet here on Sunday. Nevertheless, Tan noted a shift in momentum and expects the third quarter of the financial year 2024 to show improvement. “The tide seems to have turned as we are seeing some improvement in sales,” he said. For the second quarter of FY24, Berjaya Food Bhd reported a 35% quarter-on-quarter drop in revenue to RM183 million and a loss after tax and minority interest of about RM42 million. Tan stressed that Starbucks Malaysia is a locally owned company. – NORMAN HIU/ THESUN █ BYHAYATUN RAZAK [email protected] Tan’s Berjaya Food Bhd (BFood) faced significant challenges due to the boycott of Starbucks in Malaysia, which was made worse by the weakening of the ringgit against the dollar. This resulted in a substantial decline in revenue and a record net loss for the second quarter of the fiscal year 2024. The boycott, said to have to have sparked by the Israel-Palestine conflict, heavily impacted BFood as Starbucks Malaysia contributes 90% of the holding company’s revenue.
TUESDAY | MAR 5, 2024 5 Ramadan new moon sighting on March 10 KUALA LUMPUR: The sighting of the new moon for the commencement of Ramadan for Muslims in Malaysia will take place on Sunday, March 10. The Office of the Keeper of the Rulers’ Seal announced the Conference of Rulers had agreed that the date for the start of Ramadan will be based on the rukyah (sighting of the new moon) and hisab (calculation). Respective committees will attempt to sight the new moon in the evening at 29 locations. Pontian Kechil in Johor, Falak Al-Khawarizmi Complex in Malacca, Baitul Hilal Telok Kemang Complex in Port Dickson, Negeri Sembilan, Melawati Hill in Kuala Selangor, Jugra Hill in Kuala Langat and the Selangor observatory in Sabak Bernam. The other locations are Pasir Panjang Beach, Mukim Pengkalan Baru in Perak, Falak Sheikh Tahir Centre in Penang, Kampung Pulau Sayak in Kuala Muda, Pemandangan Indah in Langkawi Island, Alor Setar Tower in Kedah, Besar Hill in Kuala Terengganu, Geliga Hill in Kemaman, Pulau Perhentian in Besut, KUSZA observatory in Terengganu, Peraksi Hill in Pasir Puteh, Kampung Tembeling Hill in Mukim Manjur, Olak Jeram sub-district in Kuala Krai and State Economic Development Corporation Tower in Kelantan. Other sites include Falak Miri Centre in Sarawak, Teluk Bandung in Kuching, Tanjung Batu in Bintulu, Al-Biruni observatory in Sabah, Bukit Tanjong Batu in Nenasi, Mount Berinchang in Cameron Highlands, Kuantan 188 Tower Pahang, the 13th Floor on University Malaysia Sabah Tower in Labuan International Campus, Kuala Lumpur Tower, Putrajaya International Convention Centre and Pandang Tower in Al-Hussain Kuala Perlis Mosque, Perlis. – Bernama Call to make Sabah, S’wak trade centres KUALA LUMPUR: The government has been urged to develop Sabah and Sarawak as new trade growth centres for the country. GRS-Sipitang MP Datuk Matbali Musah said the development of Indonesia’s new capital city, Nusantara in East Kalimantan, makes the states potential beneficiaries of progress on the Borneo island. “The potential of Sabah and Sarawak’s position is very significant and is now even stronger, following Indonesia’s relocation of its capital to East Kalimantan in Borneo, where Malaysia shares a large portion of the island. “If a big country such as Indonesia has already moved its administrative centre and economic development away from Java Island, then it is important for Malaysia to also shift trade to the Borneo Island, making Sabah and Sarawak as new growth centres.” – Bernama Special needs student certificates ready soon KUALA LUMPUR: The Secondary School Alternative Certificate (SSAC) 2023 for students with special education needs will be issued on March 11 and can be obtained from their respective schools starting at 10am. According to statement, the Education Ministry said the Secondary School Alternative Assessment was completed on Jan 19. A total of 3,210 special needs students from 725 schools nationwide have completed schooling for the 2023/2024 academic session and they are eligible to receive the certificate. “The Education Ministry remains committed to ensuring equity and equality in education for all students as outlined in the Malaysia Education Blueprint 2013-2025.” The statement also said SSAC is a reflection of the ministry’s Pendidikan Manusiawi (humanising education) agenda, which aims to ensure every child gets access to quality education. – Bernama Buy only local handicraft as souvenirs, govt depts told KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim said government departments and agencies as well as government-linked companies are allowed to only buy souvenirs produced by local handicraft entrepreneurs to increase market access and boost the production of local art products internationally. The move presents more opportunities for local handicraft entrepreneurs, whose trade were affected during the pandemic. Labu sayong (pinched clay pitcher) entrepreneur Mohd Pareb Zamari, 46, from Kuala Kangsar said the decision announced by Anwar is an opportunity for entrepreneurs to generate better income. “When we receive orders from government agencies, our business will thrive as more people will learn about locally produced products,” he said. Fishing boat models maker Mohd Isa Siron, 52, from Pangkor Island said the move will help highlight talents of local craftmen and their handiwork on a bigger platform. Persatuan Pembatek-Pembatek Melayu Pantai Timur chairman Kamaruzzaman Mohd Salleh from Kelantan said it would encourage the 350 members from the association to be more creative in producing handicrafts suitable to be promoted internationally. Rattan handicraft entrepreneur Nur Fitrah Mohd Azizi, 32, from Terengganu is grateful for the move but she hopes for orders to be placed earlier as handicrafts that are made manually takes time. Soft toy handicraft product manufacturer Mazlina Majid, 51, from Malacca said she believes efforts to make handicraft products as souvenirs including for official national events can raise the self-confidence of local entrepreneurs, especially those who reside outside the city. “It is a confidence booster for us to produce high-quality products and achieve standards set by Kraftangan Malaysia.“ – Bernama More than 18,000 child abuse cases recorded PETALING JAYA: The Bukit Aman Women and Children Sexual Crime Investigation Division has revealed a total of 18,326 cases involving child victims of sexual crimes were recorded from 2018 to November 2023. Women’s Centre for Change (WCC) advocacy coordinator Hastiny Subramaniam said 16,447 of the total cases fell under the top three categories of rape, physical sexual assault on a child and incest. “Despite the efforts and existence of comprehensive laws that address the matter, many cases still go unreported due to a lack of awareness on the dangers of child sexual abuse,” she said, adding that sexual abuse can impact any child regardless of gender, sexual orientation, disability or socioeconomic status. “These intersecting factors contribute to a child’s vulnerability in disclosing sexual abuse and accessing justice. Children from marginalised groups and the stateless are likely to face more obstacles in oSome 16,000 reports involved rape, physical sexual assault on a child and incest █ BYQIRANA NABILLA MOHD RASHIDI [email protected] seeking justice. “Disable children are also at a higher risk of being sexually abused due to the cognitive and communication challenges.” Hastiny said perpetrators will take advantage of their disabilities to continue abusing them and often groom their victims, manipulate, exploit their trust and desensitise them through gifts and attention. She said child sexual abuse may also happen in families, plagued by poverty, substance abuse and domestic violence. “Parents and guardians often believe child sexual abuse is typically committed by strangers. However, police statistics and WCC data show over 90% of the perpetrators already possess the children’s or family members’ trust, which makes them less likely to be discovered or accused.” She also said many cases remain unreported because parents assume the child is lying about the abuse or “imagining” it, adding that it is extremely rare for a child to lie about such incidents. “When children believe they are not being taken seriously, it discourages them from coming forward, leading to the likelihood of the abuse continuing. “This could also impact the child’s trust in adults and their relationships with peers, fearing that anyone could resemble the perpetrator. Survivors find it difficult to form healthy relationships as they struggle with feelings of mistrust and vulnerability.” Hastiny emphasised the importance of parents teaching their children the concepts of “good touch” and “bad touch” to ensure their safety and well-being. “Remind your children they have a right to their bodies and to inform their trusted adults if anyone touches them in a way that makes them uncomfortable.” United Nations Children’s Fund (Unicef ) Malaysia child protection chief Saskia Blume said children are also prone to experience sexual abuse online, including being blackmailed to engage in sexual activities, having their nude pictures shared without permission and being coerced into engaging in sexual activities through promises of money or gifts. Unicef Malaysia data reported in 2022 that at least 4% or 100,000 of internet-using children, aged between 12 and 17, have experienced online sexual exploitation and abuse. Saskia said children experience abuse or other unwanted online interactions of a sexual nature on social media platforms such as Whatsapp, Facebook, WeChat and Telegram. She said 9% of the children received sexual comments about them, with most of the comments coming from someone they knew. “Children often get unwanted requests to talk about sex online. Therefore, it is crucial to talk about staying safe online.” COOL COWS ... A cattle breeder watering his herd amid the current hot weather at a farm in Kampung Bangi Lama, Kajang. – ADIB RAWI YAHYA /THESUN
TUESDAY | MAR 5, 2024 6 Enclosed is my payment of RM payable to SUN MEDIA CORPORATION SDN BHD. Please WhatsApp your bank-in slip to 0182929936 or email to [email protected] *Not inclusive of vendor service charge Stay informed with the latest news and trends All the best articles from Monday to Friday 32 pages full colour Subscribe now for Monday-Friday copies of theSun newspaper 6 month subscription (128 issues) for only RM110* (Normal price RM128) 1 year subscription (258 issues) for only RM200* (Normal price RM258) 1 year subscription at normal price RM258* (258 issues) + RM50 administration fee to get 2nd year free PERSONAL PARTICULARS Name: NRIC: Race: Malay Chinese Indian Others Profession: Commencement date: Delivery Address: Residence Ofice Postcode: State: Tel: Mobile No: E-mail: DETAILS OF CURRENT NEWS VENDOR (IF ANY) Vendor name: Contact no: For your convenience, you may call or send in your subscription particulars via any of the following: Tel: KL/PJ 03-7781 4000, 03-7784 6688 (9.30am - 5pm, Monday to Friday) Fax: 03-7781 4484 Post: P.O. Box 179, Jalan Sultan, 46720 Petaling Jaya, Selangor Darul Ehsan Attn: Subscription Email: [email protected] *Terms & Conditions apply Important note: SMCSB reserves the right to revise the price at any time without prior notice. (*Limited to ffrst 1,000 subscribers) Pay to Maybank ( Account number 508177700420 ) Account name ( SUN MEDIA CORPORATION SDN BHD ) Nov 8 to Nov 10 Malaysian Paper www.thesun.my RM1 WEDNESDAY NOV 8, 2023 No. 8389 PP 2644/12/2012 (031195) SCAN ME Casino chip heist: Five more identified Police have detained a total of 10 suspects, including a Chinese national, in connection with the RM4.6m theft at Genting Highlands on Oct 28. Congratulations! You are holding the first edition A new sunrise of our new 32-page paper featuring more of the great content you have loved for the past 30 years. Copies will be free until Friday and will be available via subscription and at newsstands beginning Monday for only RM1. 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 UKM team finds natural relief for dementia oStudy group volunteers consuming ulam raja extract found to experience increased cognitive function, memory and focus KUALA LUMPUR: Dementia is a condition caused by a variety of brain illnesses that affect memory, thinking, behaviour and the ability to perform everyday activities. The illness gets worse over time and it mainly affects elderly people. There is no cure for dementia, but a lot can be done to support both people living with it and those who care for them. The Statistics Department earlier forecast 15.3% of Malaysia’s population will be 60 years old and above by 2030. The rapid expansion of the elderly population is expected to greatly increase the number of people with dementia, Bernama reported. However, a study by a group of researchers from Universiti Kebangsaan Malaysia (UKM) has found that eating ulam raja (king’s salad), scientifically known as “Cosmos Caudatus”, could help alleviate dementia at an early stage. “Our initial study related to tropical fruits showed their protective effects against dementia. This ignited our interest to study the benefits of these ‘ulam-ulaman’ or traditional herbs, and it was found that ulam raja was the best as it has high polyphenol content,” said its head of research Prof Dr Suzana Shahar. Suzana, who is also Faculty of Health Sciences dean, said polyphenol is a very effective preventive agent for mild cognitive impairment or pre-dementia condition as it is able to boost the antioxidant level in the blood and generate new neuron cells. “Polyphenol is important for brain care as the pigments in ulam raja penetrate through the circulatory system in the brain and stimulate cells in the dorsolateral prefrontal cortex (a key brain region that plays a central role in cognitive control), enhancing cognitive function,” she said, adding that polyphenol are found in fruits and vegetables. According to Suzana, through the study conducted since 2017 using a Higher Education Ministry grant, her team produced ulam raja extract in Ulam raja has a high polyphenol content and is an effective preventive agent for mild cognitive impairment or pre-dementia conditions. – MASRY CHE ANI/THESUN powder form that is rich in polyphenol (quercetin and quercitrin). Recently, the team mixed it with berry extract to form an essence suitable as a health supplement called MindLumina. “We succeeded in marketing the product in November 2023 through Aurora Health Sdn Bhd.” She said the volunteers for the study were placed into two groups, with the first taking ulam raja powder and the other taking a placebo. “They had to undergo several cognitive tests, including answering a set of questions from the Profile of Mood States, while taking two capsules daily for three months as well as undergoing Functional Magnetic Resonance Imaging, a technique for measuring brain activity.” Suzana said those who took the ulam raja extract experienced enhanced brain function compared with the group which took the placebo. “We found there was an increase of 6.7% in cognitive function, 36.7% reduction in emotional stress, 20.9% increase in memory and focus, as well as a 7.2% decrease in mood disorder.” She added that the findings showed volunteers who made it a practice to consume ulam raja powder experienced positive changes in terms of memory.
TUESDAY | MAR 5, 2024 7 Traders, vendors urged to keep prices reasonable oGovt acknowledges hike may be influenced by food preparation costs, logistics and space rental PETALING JAYA: The Domestic Trade and Cost of Living Ministry has urged traders and vendors at food festivals to sell their products at reasonable prices so that all parties can profit. This comes after several users on X and TikTok expressed dissatisfaction about the prices of food items that ranged between RM15 and RM55 at some food festivals. Its enforcement director-general Datuk Azman Adam told theSun that while the government encourages such festivals as they represent an opportunity for traders to boost revenue, the ministry also wants them to be more ethical as vendors. “We acknowledged the price hike and believe it may be influenced by factors such as food preparation costs, logistics and space rental. “While there are locations under local authority jurisdiction that offer spaces for rent at low cost, some vendors or promoters sublease them at higher rates.” He said the ministry does not set rules for the price of items sold at food festivals, but traders are subject to the Price Control and Anti-Profiteering Act 2011. “Section 10 of the Act mandates that traders display the price tags of goods, while Section 14(1) addresses situations where traders unreasonably inflate prices, which could lead to significant market price hikes. Traders engaging in such practices risk receiving notices under Section 21 of the Act. “Traders must also adhere to Section 12 of the Weights and Measures Act 1972, which requires the use of legally valid weighing and measuring instruments to ensure fair and accurate transactions, and Section 14(1) of the Trade Descriptions Act 2011, which prohibits traders from displaying prices that might mislead consumers.” Azman said the laws aim to protect consumers and maintain fair pricing practices, particularly at events such as food festivals, where visitors may be susceptible to unreasonable pricing. “However, at the moment, the ministry has not received any complaints of prices being high at food festivals,” he said. The Federation of Hawkers and Petty Traders Association Malaysia president Datuk Seri Rosli Sulaiman said while the prices of raw materials are among the factors that compel vendors to raise prices, he believes high rental rates also play a part, prompting traders to increase their prices to maintain profit margins. “Rental should be reduced so traders are not burdened and can price their products more reasonably. All parties involved must plan food festivals carefully to make them affordable and accessible,” he said, adding that it is possible to make food festivals affordable and appealing to locals and tourists. Rosli also said food festivals do not seem to showcase the country’s culinary diversity but merely sell what is available at pasar malam, instead of promoting hard-to-find dishes that can attract locals and tourists. “If what is sold at food festivals are common dishes, there would be little incentive for visitors to attend, especially if the prices are also high.” Rosli urged organisers to carefully plan food festivals to focus on attracting tourists, with fixed dates and suitable locations, and promoting the country’s unique cuisines. “Since such festivals are held only a few times a year, organisers must maximise their appeal to visitors and benefit vendors as well. Catering to foreigners provides the potential to enhance the tourism sector and serve as an opportunity to promote our traditional cuisine and popular destinations.” Police to record PAS president’s statement KUALA LUMPUR: The police will record PAS president Tan Sri Abdul Hadi Awang’s statement regarding his recent remark on upholding Islam at the party’s headquarters today. Inspector-General of Police Tan Sri Razarudin Husain said Abdul Hadi’s special officer set the date after informing police about the Marang MP’s health condition, which is improving. “We will record his (Abdul Hadi) statement today at 2.30pm at the PAS Headquarters in Kuala Lumpur,” he said at Pulapol yesterday. He was met after witnessing the handingover of duties between outgoing Bukit Aman Narcotics Crime Investigation Department director Datuk Seri Mohd Kamarudin Md Din, who has been appointed Internal Security and Public Order Department director, to Datuk Khaw Kok Chin. The handing over of duties also involved former Internal Security and Public Order Department director Datuk Seri Hazani Ghazali, who has been appointed director-general of the newly formed Malaysia Checkpoints and Border Agency, and Mohd Kamarudin. Last Friday, Razarudin was reported to have said the police had opened an investigation paper under Section 4(1) of the Sedition Act 1948 and the Communications and Multimedia Act 1998 against Abdul Hadi, on his statement published on the PAS news portal last Feb 20, which was allegedly addressed to several parties, including the Malay Rulers. On Feb 29, Sultan of Selangor Sultan Sharafuddin Idris Shah expressed deep regret over the statement made by Abdul Hadi, which was addressed to religious scholars, judges, lawyers, members of Parliament and State Legislative Assemblies, as well as the Malay Rulers. In a post on the Selangor Royal Office Facebook page yesterday, Sultan Sharafuddin conveyed this sentiment by sending a letter to Abdul Hadi through Selangor PAS commissioner Datuk Dr Ab Halim Tamuri. In the letter, Sultan Sharafuddin, among other things, said Abdul Hadi had made the statement without thoroughly reading His Royal Highness’ speech at the National Council for Islamic Religious Affairs meeting on Feb 15. – Bernama DPP objects to bid by Muhyiddin to postpone case KUALA LUMPUR: The prosecution in former prime minister Tan Sri Muhyiddin Yassin’s case on abuse of position over a bribe of RM232.5 million for Parti Bersatu related to the Jana Wibawa Project will object to the defence request to postpone the case until its appeal hearing at the Federal Court. DPP Datuk Wan Shaharuddin Wan Ladin said the case was still at the Sessions Court following an order by the Court of Appeal last Feb 28 to reinstate the case at the court. He said the prosecution will object to the defence application because the highest appeal for cases in the Sessions Court is the Court of Appeal, as provided by Section 87 of the Court of Judicature Act 1964 The case came up for mention before Sessions Judge Azura Alwi yesterday. Earlier, lawyer Datuk Hisyam Teh Poh Teik, representing Muhyiddin, told the court that the defence had filed a notice of appeal at the Federal Court on Feb 29 to challenge the Court of Appeal’s decision. Azura then set April 3 for mention to know the progress of the appeal application. On Feb 28, the Court of Appeal ordered Muhyiddin’s case for using his position for bribes for Bersatu to be sent back to the Sessions Court for further action. Muhyiddin, 76, was charged with using his position as the then prime minister and Bersatu president to obtain bribes amounting to RM232.5 million from three companies, namely Bukhary Equity Sdn Bhd, Nepturis Sdn Bhd and Mamfor Sdn Bhd, and also from one Datuk Azman Yusoff for the party. – Bernama Organisers have been urged to carefully plan food festivals to focus on attracting tourists while keeping prices at a reasonable level. – ADIB RAWI YAHYA/THESUN █ BYQALIF ZUHAIR [email protected] Three die after being hit by train KUALA LUMPUR: Three Bangladeshi men were killed after they were hit by a commuter train on the KTM Puncak Utama Jade Hill tracks yesterday. Selangor Fire and Rescue Department director Wan Md Razali Wan Ismail said they were alerted to the incident at 10.53pm. He said a fire engine with five personnel from the Kajang station was dispatched to the scene following the emergency call. “The deceased, in their 30s to 40s, were not trapped under the train but flung to the side of the tracks. They were pronounced dead by a medical team from the Health Ministry,” he said in a statement yesterday. The case has been handed over to the police for further action. – Bernama Former treasurer charged with misappropriation JOHOR BHARU: A former treasurer of a mosque committee pleaded not guilty in the Sessions Court yesterday to a charge of misappropriating RM12,000 belonging to a mosque. Syaharullah Ismail, 44, made the plea before Judge Datuk Ahmad Kamal Arifin Ismail. The accused, who is a lorry driver, was charged as the then treasurer of the Kampung Sri Machap Al Ubudiah Mosque Committee to have misappropriated RM12,000 belonging to the mosque at a bank in Jalan Dato Kapten Ahmad, Kluang on Nov 12, 2022. The father of three children was charged under Section 403 of the Penal Code, which provides imprisonment for up to five years and whipping, and shall also be liable to a fine upon conviction. The judge allowed him bail of RM5,000 with one surety and set April 8 for mention. Syaharullah was also ordered to report himself at a Malaysian Anti-Corruption Commission office every month. – Bernama
TUESDAY | MAR 5, 2024 8 Respectful dialogue holds key for Asean o ‘Peaceful, stable and prosperous’ watchwords for way forward MELBOURNE: Leaders from Southeast Asian nations and Australia gathered here yesterday were expected to denounce the “threat or use of force” to settle disputes in the region. “We strive for a region where sovereignty and territorial integrity is respected,” a draft joint Asean-Australia statement read. “We strive for a region where differences are managed through respectful dialogue, not the threat or use of force.” Beijing’s aggressive stance in the South China Sea is tipped to feature prominently in three days of discussions. Territorial disputes in the vital trade corridor have escalated in recent months, with China baring its teeth in areas also claimed by Asean members such as the Philippines and Vietnam. “We all have a responsibility to shape the region we want to share: peaceful, stable and prosperous,” said Australia’s Penny Wong, the host foreign minister. “This is more important than ever with the region’s character under challenge,” she said. “We face destabilising, provocative and coercive actions, including unsafe conduct at sea and in the air and militarisation of disputed features.” Talks are also expected to focus on economic cooperation, as countries like the Philippines and Australia look to insulate their economy against retaliation from China. Philippines Foreign Minister Enrique Manalo said that economic resilience was a crucial part of ensuring security and sovereignty are upheld. As part of that effort, he said the Philippines hopes to launch formal free trade agreement negotiations with the European Union “very soon”. The Philippines is focused on creating “greater economic security and economic resiliency, which in turn contributes to your own national security”, Manalo said. “What we’re really aiming for is the notion of greater economic resilience,” the minister said, underscoring the importance of being able to adapt to “sudden changes”, whether human-made or natural. The Melbourne summit marks 50 years since Australia became Asean’s first dialogue partner. It comes at a time of significant political change within the bloc. Indonesian President Joko Widodo will leave office by October after 10 years in power, while long-serving Singapore Prime Minister Lee Hsien Loong is slated to stand down soon after. Myanmar sent a senior diplomat to an Asean summit earlier this year – the first time it was represented in more than two years. Asean’s 10 member states are Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Myanmar. Although Myanmar remains a member, political representatives and military leaders from its ruling junta have been banned from high-level meetings. – AFP Solve maritime disputes peacefully: Philippines MELBOURNE: Philippine Foreign Minister Enrique Manalo said yesterday that his country wants to solve maritime disputes with China peacefully. Speaking on the sidelines of an AseanAustralia summit in Melbourne, Manalo defended his government’s policy of publicising Chinese manoeuvres in contested maritime territory, including the recent passage of warships near Scarborough Shoal. “It’s merely trying to inform the people of what’s going on,” Manalo said. “And some countries or one country at least has some difficulty with that.” “But our simple explanation is if you would stop harassing us and, and perhaps performing other actions, there wouldn’t be any news to report.” China claims almost the entire South China Sea as its territory, brushing aside claims from a host of Southeast Asian nations. Scarborough Shoal – a triangular chain of reefs and rocks in the disputed South China Sea – has been a flashpoint between the countries since China seized it from the Philippines in 2012. Philippine governments have tried to rally international and regional support to their cause - with mixed results. “The Philippines is committed to a peaceful resolution of disputes through diplomatic means, or peaceful means,” Manalo said, while insisting “this will not be done at the expense of our national interest.” He acknowledged there were was at least a small question mark over support from the Philippines’ most important security partner – the United States. The two countries are treaty allies, meaning Washington has formally pledged to come to Manila’s defence in the event of a military conflict. Ask about the November election – which will pit incumbent Joe Biden against Republican firebrand Donald Trump, he said it was a topic of frequent debate behind closed doors. – AFP Thailand top court clears ex-PM of graft B R I E F SCHINA CANCELS PM PRESS CONFERENCE FOR FIRST TIME BEIJING: China’s Premier Li Qiang will not hold a press conference after the close of this year’s annual parliamentary meeting, an official said, ending a tradition maintained for three decades. Since 1993, China’s premiers have met the media after the gathering of the National People’s Congress (NPC), offering journalists a rare chance to ask questions in a typically wide-ranging news conference. The decision was made because there would be more briefings by government ministers during the annual parliament meeting where senior cabinet officials will talk on diplomacy, economy and people’s livelihood, said NPC spokesman Lou Qinjian. – Reuters TRAIN CRASH CAUSED BY DRIVERS WATCHING GAME NEW DELHI: The drivers of a train that missed a signal and ploughed into another train, killing 14 people, were distracted because they were watching cricket on a phone, said India’s railways minister. The fatal collision in Andhra Pradesh state in October took place as hosts India played England during the one-day World Cup. “The case in Andhra Pradesh happened because both the loco-pilot and co-pilot were distracted by the cricket match,” Minister of Railways Ashwini Vaishnaw said. “We are installing systems which can detect any such distraction and make sure that the train drivers and their assistants are fully focused on running the train.” – AFP ONE FIFTH OF MEKONG FISH SPECIES FACE EXTINCTION BANGKOK: Unsustainable development threatens the health and diverse fish populations of the Mekong river, with onefifth of its fish species facing extinction. Threats include habitat loss, conversion of wetlands for agriculture and aquaculture, unsustainable sand mining, introduction of invasive species, extreme weather changes and hydropower dams fragmenting the flow of the 5,000km-long river and its tributaries, according to the report compiled by the World Wildlife Fund and 25 global marine and wildlife conservation groups. – Reuters BANGKOK: Thailand’s Supreme Court yesterday cleared former prime minister Yingluck Shinawatra of corruption in awarding a government contract during her time in office. Yingluck, who ruled from 2011 until she was ousted in a 2014 military coup, was charged with malfeasance in a 2013 project worth over US$6.7 million (RM32 million). The ruling is the latest legal success for the powerful Shinawatra family after Yingluck’s brother Thaksin – a two-time premier also ousted in a coup – was freed on parole in February, six months into what was originally an eight-year prison sentence. Yingluck and five others were accused of not running a proper bidding process to run the “Roadshow to Build the Future of Thailand”, a campaign to promote her government’s infrastructure projects. Nine judges sitting in the kingdom’s top court ruled unanimously in favour of the former premier, saying they “found no intention” to benefit the two major media outlets which won the contract, according to a statement. “The project was done according to the regulations,” the court statement said. Yingluck, who has lived in self-imposed exile since 2017 to avoid a conviction in another case, was not present at the court but was represented by her lawyer. – AFP FRUITY PARADE ... Indonesians parade a float of durian and other produce during a festival in Wonosalam village in Jombang, eastern Java. – AFPPIC
TUESDAY | MAR 5, 2024 9 SYDNEY: The head of one of Australia’s largest media groups said yesterday that the country should stand up to tech giants, days after Facebook parent Meta announced it would no longer pay outlets for news. News Corp Australasia executive chairman Michael Miller said Meta’s decision put hundreds of jobs at risk and would expose Australians to more scams and misinformation. “Australia must not surrender its leadership in being a country that is prepared to stand up to tech giants,” he said in comments to one of the company’s newspapers. “Meta believes it is above our government and above our laws. It has no care for communities.” Meta said on Friday it would scrap the Facebook News tab in Australia and would not renew deals with news publishers worth hundreds of millions of dollars. The social media giant said its decision to pull the plug on the news deal was based on people not going to Facebook for news and political content. Miller added that despite Meta’s claims it attempted to stamp out scams, they kept occurring. “And it’s not just scams, it’s the misinformation, it’s the fake news, it’s the social impact that it’s having for all Australians ... particularly young Australians who don’t yet have the maturity to understand that what they are seeing on Meta’s platforms is not always real,” he said. “It’s not just doing damage to the media industry, it’s doing damage to our democracy.” Meta had previously announced it would not renew content deals with news publishers in the United States, Britain, France and Germany. The latest decision had been on the cards, but will come as a hammer blow for Australian news outlets already struggling to stay afloat. A Meta spokesperson would not comment on Miller’s remarks, but said Friday’s decision would still allow users to share and view news content, while publishers could still use their pages to share content. – AFP Swiss vote decisively for ‘13th month’ pension increase GENEVA: Swiss voters overwhelmingly backed a proposal to increase pension payments, a move hailed as “historic” by backers at a time when the country’s ageing population faces surging living expenses. A call by trade unions to add a 13th monthly pension payment each year secured nearly 60% backing. But a separate vote to raise Switzerland’s retirement age to 66 from 65 was soundly rejected by three-quarters of voters. “This is historic,” said Pierre-Yves Maillard, head of the Swiss Trade Union Federation. Sunday’s vote marks the first time that Swiss voters have accepted a popular proposal to alter the country’s social security system, according to the ATS-Keystone news agency. It is also the first time Swiss trade unions have succeeded in pushing through an initiative at the polls under the country’s direct democratic system. The initiative calls for pensioners to receive an additional monthly payment, similar to the 13th monthly salary that many employees receive in Switzerland and other European countries. Monthly state pension payments in Switzerland max out at 2,450 Swiss francs (RM13,145) for individuals and 3,675 francs for married couples. That does not go far in a country consistently ranked among the most expensive in the world. The government said the pension increase would cost more than four billion Swiss francs a year, which would require tax increases and could threaten the financial stability of the social security system. Interior Minister Elisabeth BaumeSchneider said that “democracy is alive and kicking in Switzerland”. – AFP Australia media hits back as Facebook scraps news deals oTech giant blamed for scams and misinformation Seek approval before releasing AI tools, tech firms told NEW DELHI: India has asked tech firms to seek its approval before the public release of artificial intelligence (AI) tools that are “unreliable” or under trial, noting they should also be labelled for the potential to return wrong answers for user queries. The use of such tools, including generative AI, and its “availability to the users on Indian internet must be done so with explicit permission of the government of India,” the country’s IT ministry said in an advisory issued to the platforms. Countries across the world are racing to draw up rules to regulate AI. India has been tightening regulations for social media companies, which count the South Asian nation as a top growth market. The advisory came a week after a top minister on Feb 23 lambasted Google’s Gemini AI tool for a response that Indian Prime Minister Narendra Modi has been accused by some of implementing policies characterised as “fascist”. A day later, Google said it had quickly worked to address the issue and the tool “may not always be reliable”, in particular for current events and political topics. “Safety and trust is the platforms legal obligation. ‘Sorry Unreliable’ does not exempt it from law,” Deputy IT Minister Rajeev Chandrasekhar said. India’s advisory also asked platforms to ensure that their AI tools do not “threaten the integrity of the electoral process”. India’s general elections are to be held this summer, where the ruling party is expected to secure a clear majority. – Reuters RISKY RESCUE ... Japanese Coast Guard using a helicopter rescued 24 fishermen from their boat that lost power near Kozushima Island, south of Tokyo yesterday. One person is missing. – AFPPIC B R I E F SWALKOUT DOCTORS FACE FINES, SUSPENSION SEOU: South Korea’s health minister said yesterday authorities will start inspecting hospitals to take legal action against trainee doctors who have ignored an ultimatum to end a walkout over government plans to increase medical school admissions. Around 9,000 resident and intern doctors, or about 70% of the country’s total, have walked off the job since Feb 20, leading to the cancellation of some surgeries and treatments and putting a strain on emergency departments. Vice-Health Minister Park Min-soo said the government would take steps to suspend the medical licences of some 7,000 trainee doctors who had left their jobs. Korean Medical Association, which represents private practitioners, apologised yesterday for the inconvenience, but urged the government to rethink its medical reforms and accused authorities of a “witch-hunt”. – Reuters CHINA SEES BETTER TIES ‘NO MATTER WHO’ WINS U.S. POLL BEIJING: China said yesterday it hopes relations with the United States can improve whoever wins the presidential election in November. Beijing and Washington have clashed in recent years on flashpoint issues from technology and trade to human rights, as well as over Taiwan and competing claims in the South China Sea. Americans go to the polls this November in an election that will likely pit former leader Donald Trump against President Joe Biden. “You mentioned the US presidential election, it is an internal affair of the United States,” parliament spokesman Lou Qinjian told a press conference in response to a question. “No matter who becomes the president, we hope that the United States can work in the same direction with China and work for a stable, healthy and sustainable China-US relationship.” – AFP
TUESDAY | MAR 5, 2024 10 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ US calls for immediate ceasefire in Gaza GAZA STRIP: US Vice-President Kamala Harris urged an immediate ceasefire in Gaza, upping the pressure on key ally Israel as heavy fighting raged in the Palestinian territory. Harris’s comments, the most forceful to date by a US A Palestinian girl carries a child through the rubble of houses destroyed by Israeli bombardment in Gaza City. – AFPPIC oPressure for truce mounts after warnings of famine Kremlin says German army discussing strikes on Russia MOSCOW: The Kremlin said yesterday a recording of German military discussions showed Germany’s armed forces were discussing plans to launch strikes on Russian territory, and questioned whether Chancellor Olaf Scholz was in control of the situation. Russian media last week published an audio recording of what they said was a meeting of senior German military officials discussing weapons for Ukraine and a potential strike by Kyiv on a bridge in Crimea, prompting Russian officials to demand an explanation. “The recording itself says that within the Bundeswehr, plans to launch strikes on Russian territory are being discussed substantively and concretely. This does not require any legal interpretation. Everything here is more than obvious,” said Kremlin spokesman Dmitry Peskov. Germany says it is investigating the recording. Russia has summoned Germany’s ambassador. “We have to find out whether the Bundeswehr is doing this on its own ... how controllable is the Bundeswehr and how much does Scholz control the situation? Or is it part of German government policy?” he asked. “Both (scenarios) are very bad. Both emphasise direct involvement of the countries of the collective West in the conflict around Ukraine.” Russia accuses the West of using Ukraine to wage a proxy war against it; Nato says it is helping Kyiv to defend itself. – Reuters administration official, came as Washington led a push to lock in a truce before Ramadan. Envoys from the United States, Qatar and Hamas were in Cairo for the latest round of talks over a proposal to pause the five-monthold war. According to a senior US official, Israel has broadly accepted the terms, which would see stepped-up aid deliveries and the exchange of hostages for Palestinian prisoners. Several sticking points reportedly remain, including Hamas’s insistence that Israeli forces entirely withdraw from the devastated territory. “Hamas claims it wants a ceasefire. Well, there is a deal on the table,” Harris said. Taking an unusually sharp tone, she demanded Israel “do more to significantly increase the flow of aid” into Gaza, where she said people are starving and the conditions “inhumane”. “Given the immense scale of suffering in Gaza, there must be an immediate ceasefire.” Pressure for a truce has mounted after attempted aid deliveries have descended into scenes of tragedy, and convoys have failed to reach families in the north. After UN warnings of famine in Gaza, the United States started airdropping food rations on Saturday, following in the steps of Jordan and some other countries. “It is imperative that we expand the flow of aid into Gaza to alleviate the dire humanitarian situation,” US Secretary of State Antony Blinken wrote on X. Harris and Blinken are both due to meet Israeli war cabinet member Benny Gantz in Washington. The former Israeli military chief, a centrist and longtime rival of Netanyahu, will also meet White House national security advisor Jake Sullivan. A White House official said the discussions would include the need for a hostage deal, temporary ceasefire and expanding aid flows. Despite the latest push to halt the fighting, there has been no letup to the pummelling of Gaza. A Hamas official said that the group wants the ceasefire deal to include “the entry of at least 400 to 500 trucks per day” carrying food, medicine and fuel. Osama Hamdan, a Lebanonbased Hamas official, told Qatar’s Al-Araby TV that the group insisted on a complete ceasefire. – AFP B R I E F SHOME OF MURDER SUSPECT BLOWN UP NABLUS: Israeli troops yesterday blew up the home of a Palestinian accused of killing a British-Israeli woman and her two daughters in the West Bank last year. The apartment of Moaz al-Masry, who was killed by Israeli forces following the April 7 attack, was demolished in the early hours, said Palestinian witnesses and the Israeli military. The Palestinian Red Crescent Society said their medics treated about 15 people after Israeli forces fired tear gas during the raid on the West Bank city of Nablus. Moaz, along with two other attackers, was accused of shooting dead Israeli settler Leah Dee and her daughters Maia and Rina as they were driving near Hamra in the Jordan Valley. Following a manhunt, the assailants were killed in a raid on Nablus in May. Israel routinely demolishes the homes of Palestinians accused of carrying out attacks. – AFP UN RIGHTS CHIEF SEES THREAT OF WIDER WAR GENEVA: The Gaza war between Israel and Hamas is a “powder keg” with the potential to spark broader conflict in the Middle East, UN human rights chief Volker Turk said yesterday. He said it was imperative to do everything possible to avoid a wider conflagration. “The war in Gaza has already generated dangerous spillover,” he said in his global update to the UN Human Rights Council. “I am deeply concerned that any spark could lead to a much broader conflagration. This would have implications for the Middle East and beyond.” He said overlapping emergencies made the spectre of spillover conflict very real. “The military escalation in southern Lebanon between Israel, Hezbollah and other armed groups is extremely worrying.” – AFP
11 TUESDAY | MAR 5, 2024 Navigating challengesin Sabah I N 1979, I was transferred to Sabah. I anticipated challenges at the Pamol plantation there, but there were even bigger problems. Upon handing over, the general manager Garven Thorniley said: “Here, we have to prepare for big floods. However, the biggest problem is pollination.” In the few years that had passed, I was happy in Kluang as the estate manager, and gained my promotion after my rivals had moved away. Anthony Wong and David Wan left for big jobs in the Sabah-owned plantation organisation Sabah Land Development Board, and Douglas Lee in Pamol, Kluang, left for Kuala Lumpur Kepong. N.S. Sankar, the estate manager, returned to his homeland in Kerala, India. I took over after I left my role as personnel manager. That position had also proven successful despite initial reservations from Bill Fernando, the director of the Malayan Agricultural Producers Association, who initially opposed my inclusion on his committee. However, we got on well and I was happy when he and his wife Violet stayed at the estate. Meanwhile, Leslie Davidson, the general manager of Pamol Estate, was leaving to assume the position of second-in-command to the chairman of Unilever’s Plantation Group. Despite his relocation, he maintained regular contact via telexes. The transition process lasted nearly a month. One day, Thorniley informed me: “Plantation owners in Sabah and Sarawak have agreed to fund the pollination study, provided Unilever covers the initial expenses. You can facilitate the collection of their payments through the East Malaysia Planters Association. “That will now be your responsibility,” Thorniley remarked. Approaching 50, Thorniley hailed from Cornwall and pursued agricultural studies at Aberdeen. He married Mary, a Scottish woman who was supportive. Thorniley’s routine included walking miles to check the palms, with the managers trailing him. After work, he would be at the club, engaging with the staff and playing table tennis. Having spent nine years at the plantation, Thorniley knew every staff and every corner of the estate. However, reflecting on the challenges, he added: “This place can propel you one step forward, only to push you back two steps.” With a wry smile, he continued: “At least, life is better than when Davidson first established this place. Indeed, Davidson had initiated the plantation, planting the first palms with the help of the Chinese and the Kadazan living along the riverbanks. He then recruited the Cocos Islanders, Bugis from Sulawesi and skilled workers from the Philippines. He also oversaw the construction of a staff club with a swimming pool, providing a recreational outlet for the team after a hard day’s work. He made light of his challenges and even added a good dose of humour in his 325-page book East of Kinabalu, published by the Incorporated Society of Planters. Now I was left to head the plantation. I had a team of capable staff in the office. Experienced engineers managed the mill, processing the fresh fruit bunches sent in by trained planters, including expatriates, with Bill Morrison as the manager of the plantation. Despite the support and comforts, each day presented a new challenge. One of the tasks was to check the laboratory where pollen from male flowers was collected, sieved, checked for viability, and stored in freezers. When needed, the pollen was mixed with talcum and put in plastic bottles attached to a tube that went up a long bamboo pole. Workers would then work among the rows of palms, blowing a puff of pollen to the crown of each tree. However, there were some months when the crop yield would decrease due to incomplete pollination. This could be due to floods when workers could not go to work, with repercussions showing effect around six months later as it takes that long for the bunches to ripen. It also took a long time for Davidson to get the study done on the insects’ role in Kluang and Africa. Eventually, his letter arrived: “Dr Rahman Anwar Syed had studied the insects in the Pamol estate in Cameroon and now confirms that the insects are effective pollinators. “Arrange for a visit by the Agriculture Department officers to assess his work. If they endorse it, we can proceed with the application to bring pollinators into Malaysia,” the letter stated. In Kota Kinabalu, I met the Agriculture Department director Datuk Aripen Ampong, and briefed him on the study. Rahman indicated in his research that pollination in Peninsular Malaysia relied on an insect called Thrips hawaiiensis, which could pollinate tall palms with a full canopy. However, due to its weak flying capabilities, its effectiveness was limited. In Sabah, no such insect existed to aid in pollination efforts. Aripen agreed to send his deputy Dr Tay Eong Beok to assess the work in Cameroon. In Kuala Lumpur, I convened a team consisting of Zam Karim, a senior officer and entomologist with the Agriculture Department, and Datin Kang Siew Ming, head of quarantine. It was a chance to travel to Africa. I wrote to Davidson expressing my intention: “I should accompany them. Some have met Rahman, and if any issues arise between him and any of them, the project could fail.” I felt the necessity of my presence for I had dealt with research scientists before. They were sensitive. Even a question could be an affront to their professional integrity. I knew my role. I would intervene before tensions escalated. We consulted with numerous scientists at the research centre in Montpellier, France, and La Me in Ivory Coast. In London, we met with entomologists at the Museum of Natural History and botanists at Kew Gardens. Upon arriving in Cameroon, I accompanied the team to the plantation, where we listened as Rahman explained his work. Rahman was a senior entomologist originally from Pakistan, working for the Commonwealth Institute of Biological Control based in London. He had a knack for explaining his work, delivered in a refined English accent. Rahman had a tendency to stare back when his work was disputed, yet he was fastidious with details. To verify Rahman’s findings, Kang even climbed up the ladder to inspect the tall palms herself. Her efforts confirmed the presence of Elaeidobius insects and observed flying and landing on the female inflorescences. These insects were adorned with pollen, seeking out more to consume while leaving fresh grains adhering to the receptive flowers. The female flowers emitted the same scent as the pollen, luring the insects – a testament to nature’s way of working seamlessly. Zam and Tay delved into technical discussions which I could not follow. However, I did not have to step in at any stage to intervene throughout our interaction with Rahman. When we got back, I did not know of the decision of the scientists as they reported their findings to their departments. However, I found myself in anticipation, wanting to know the results. The writer has extensive experience in the management of oil palm plantations. Comments: [email protected] “While I was heading the plantation, I had a team of capable staff in the office and experienced engineers managing the mill. However, despite the support and comforts, each day was a challenge. Address plight of undocumented Bangladeshis in Malaysian prison I WISH to highlight once again the revelation made by the honourable Bangladeshi Member of Parliament (MP) Tanvir Shakil Joy that up to a thousand of his fellow citizens have been duped into working in Malaysia, only to find themselves languishing in prisons due to their undocumented status. As an MP, I am equally and deeply saddened over the plight of these prisoners and their families in Bangladesh, many of whom have been scammed, exploited and extorted in hopes of working in Malaysia. Many of them have sold their properties to pay their way here, only to find themselves incarcerated for crimes they did not commit. These Bangladeshis come to Malaysia seeking employment in unattractive, low-paying menial jobs often labelled as “dirty, dangerous and difficult”, which very few Malaysians are willing to undertake. There is no doubt that even words cannot describe their anguish, especially considering the hope they hold of providing for their children’s education to break the cycle of poverty. If this situation does not constitute an affront to justice, then what does? The question that many of us have been asking time and again is: “How can these undocumented foreign workers be allowed to enter our country without the knowledge of our authorities, especially the Immigration Department?” There must be loopholes and corruption involved, and those responsible for bringing them here or facilitating their entry must face the full force of the law. It is high time the government take heed of the advice to amend the law, consolidating the responsibility for handling applications, vetting, processing and renewing necessary documents for foreign workers under a single ministry. The more the bureaucracy, inevitably the greater the opportunities for corruption. Furthermore, unless they were involved in criminal activities, these Bangladeshis who have become victims of injustice should be allowed to apply for job vacancies in the country instead of bringing in new workers. Placing them behind bars will only strain our prison resources. Lim Lip Eng MP for Kepong Many Bangladeshis have been scammed, exploited and extorted in hopes of working in Malaysia. – THESUN PIC LETTERS [email protected] E STATE MANAGERWRITE S BY MAHBOB ABDULLAH
HEALTH HEALTH 12 TUESDAY | MAR 5, 2024 Dogs help reduce epileptic seizures EPILEPSY is a common neurological disease affecting 50 million people worldwide, according to the World Heath Organisation (WHO). It is associated with seizures and convulsions, which can be extremely debilitating for sufferers. A Dutch study published in the journal Neurology, demonstrates how dogs may be able to help reduce these seizures. Researchers from Rotterdam’s Erasmus University in the Netherlands have turned their attention to the medical virtues of dogs in the management of epileptic seizures. Indeed, this neurological disease still holds many mysteries for scientists. Although epilepsy has been recognised since ancient times, treatment options remain unsatisfactory for a large number of patients. “Despite the development of numerous anti-seizure medications over the past 15 years, up to 30% of people with epilepsy experience persistent seizures,” says Erasmus University study author Valerie van Hezik-Wester in a statement. Predicting epileptic seizures is a crucial matter for the scientific community. And it turns out that dogs can be trained to recognise and respond to these episodes. “Seizure dogs are trained to recognise seizures and respond when they occur. The tasks that these dogs perform along with their companionship may reduce seizure-related anxiety, potentially reducing seizures caused by stress, the most common trigger for seizures,” explains Hezik-Wester. Reduced seizures As part of their research, the scientists monitored some 20 people suffering from epilepsy over the course of three years. These people had a poor response to anticonvulsant treatment and a high risk of seizure-related injury. The scientists observed them in their daily lives before randomly assigning them a seizure dog. In addition, study participants were asked to record the frequency and type of epileptic seizures they suffered in a diary and to fill out a follow-up questionnaire every three months. They were asked to evaluate factors such as the severity of their seizures, their quality of life, and their general well-being. The research team found that people with epilepsy had, on average, 31% fewer seizures when Dogs aid in epilepsy seizure reduction. I Milk matters N the realm of dietary woes, lactose intolerance often takes the blame for milkrelated digestive issues. There is, however, more to the story than lactose alone, according to Dr Tan I-Lene. In a candid conversation, Tan unravels the complexities of milk digestion, shining a spotlight on the impact of ultra processing and advocating for a return to the wholesome goodness of fresh, minimally processed whole milk that should be available and accessible to all Malaysians. “The culprit behind milk digestion issues may lie in the process rather than the product itself,” Tan said. She explained that humans digest nutrients in their natural form in a lock and key mechanism. The digestive system has receptors and enzymes that are attuned to specific forms of nutrients to digest them. “Ultra processing alters the natural molecular structure of nutrients, making them difficult for the body to digest effectively. Put simplistically, the key cannot fit into the lock. “This can lead to a range of digestive problems, including indigestion, bloating, diarrhoea, and even irritable bowel syndrome.” Tan points out that while ultra processed foods may still retain certain levels of nutrition, their digestibility and nutritional quality become questionable. AFN founders (from left) Hasniza Ali, Tan, Karen Kow, and Sushma Sivasriamphai. “While nutrients may still be present, their bioavailability and digestibility are compromised, leading to a host of health issues.” Research also strongly suggests that ultra contain higher amounts of calories, sugar, salt and additives such as preservatives, emulsifiers and stabilisers. “Ultra processed foods tend to lead to less satiety as the foods are highly processed thus bypass natural digestive processes leading to faster gut transit time and elimination. You feel full for a shorter amount of time and wind up eating more. “This phenomenon leads to what is commonly known as ‘empty calories’ and indirectly is one of the causes of weight gain, obesity and even malnutrition in modern society. “We all know that junk food is bad for us and we should avoid it. The m o s t a l a r m i n g part of this is when p e o p l e d o n ’ t realise that they are eating ultra processed food because it’s been cleverly disguised and even worse, marketed as healthy,” Tan cautioned. This paints a stark picture of starving people who are overweight but malnourished as we can see after a few generations of consuming ultra processed foods. The real danger lies in foods that are disguised as healthy when in fact they are ultra processed. Milk products are a prime example of this. Carton milk available in Malaysia undergo various processing methods such as ultra pasteurisation, heat treatment, or chemical treatments but still sit in the chill section of the supermarket shelves leading consumers to assume that the milk that they are buying is fresh when it could be reconstituted from milk powder or concentrate or contain additives, preservatives, or emulsifiers to extend shelf life. Tan highlights the importance of distinguishing between fresh milk and ultra processed milk, which often contain additives and preservatives to extend shelf life. Tan emphasised the need for consumers to be aware of their milk choices, especially considering the alarming rates of malnutrition and obesity in Malaysia. To address this issue, (Asia Farm Networks (AFN) works with local family-owned farms to provide Malaysians with fresh, locally produced milk. As the dairy landscape evolves, Tan emphasises the role of companies in shaping a healthier, more sustainable future. By prioritising minimal processing and ethical sourcing, businesses can empower consumers to make informed dietary choices. they started sharing their lives with a seizure dog. Seven participants even found that their seizures had halved or disappeared altogether. At the start of the study, the volunteers had 115 seizures over 28 days. This figure dropped to 73 with the help of the dogs. For Hezik-Wester, these encouraging results show that “seizure dogs can help people with epilepsy.” Nevertheless, they cannot be hailed as a miracle solution. Indeed, some patients discontinued their participation in the study after the researchers assigned them a seizure dog. More research is therefore needed to better understand how these fourlegged friends can help the medical community manage epilepsy. oUnderstanding milk processing and its impact processed foods tend to have n e g a t i v e effects in t h e b o d y a s t h e y
TUESDAY | MAR 5, 2024 Editorial T: 03-7784 6688 F: 03-7785 2625 E: [email protected] Advertising T: 03-7784 8888 E: [email protected] SCAN ME OKINAWA, JAPAN: Berjaya Corp Bhd, through Berjaya Land Bhd (BLand), is set to expand into Japan’s ¥3.4 trillion (RM107 billion) tourism market with a focus on luxury hospitality. This comes on the heels of its ultra-luxury US$1.12 billion (RM5.3 billion) 32-acre Four Seasons resort in Okinawa which is scheduled to be completed in 40 months. Berjaya Corp founder and adviser Tan Sri Vincent Tan Chee Yioun said he aspires to build hotels and resorts in Japan as the group is confident in the profitability – citing Japan’s strong tourism industry. “We are looking at a few places. We have bought a piece of land in Karuizawa. Karuizawa is very popular in the summer. It’s a summer resort where a lot of wealthy people go. It’s two hours from Tokyo. We also bought a piece of land in Hakone. Hakone is another popular destination. However, we haven’t finalised our plans yet. For Karuizawa, we are in talks with Four Seasons, so potentially, that could be our fourth Four Seasons in Japan,” he told reporters at its Four Seasons Okinawa groundbreaking ceremony yesterday. However, Tan said the land the group bought in Hakone is too small for a Four Seasons. “We would like to build a Four Seasons in Hakone if we can get a bigger piece of land. So we are considering other brands. We need to discuss with Four Seasons whether they like the location and think it will do well. “For example, for Okinawa, they say it’s a no-brainer. Okinawa will do well. And they love Yokohama (BLand’s third Four Seasons). So, it’s important for us to buy the land and see whether they like the place or not. If not, we have to look at alternatives,” he explained. Tan said Japan is a great tourist destination with a vibrant tourism industry. “Most people who visit Japan have a good experience. The culture here is very courteous. Guests are well-treated, and the place is clean and almost crime-free. So, it’s a very popular tourist destination,” he added. Although for some it may be considered expensive, he said people who come on group tours get value for their money. “So, of course, the hotel industry does well. That’s why we came and built the first Four Seasons in Kyoto in 2016,” he said. BLand is also the developer behind the Four Seasons Hotel & Residences Kyoto. Tan said Kyoto was a successful project for them which led to their venture in Okinawa. The group bought 100 acres in Okinawa in 2009. The Four Seasons Okinawa will be a lowdensity resort development, comprising 127 hotel rooms, 124 condo residences and 28 private villa residences on 32 acres of oceanfront land. In keeping with the Four Seasons’ brand standards of hospitality, the resort facilities and amenities will include indoor and outdoor pools, sports facilities, a fitness centre, spa, kid’s club, and five restaurants. Tan said the apartments and villas are for sale, and the hotel will be retained. Overall, he is confident that this project will be profitable for the group. “The Okinawa resort economics will be very good. From the GDV and our land cost and construction cost, I think we should do very well,” he said. Tan disclosed that the development will go on sale at US$3,500 per square foot. Meanwhile, the villas will be US$4,000 per square foot. “Assuming if we were to sell everything, we can make US$400 million to US$450 million profit. That’s after tax. And also, we did this with a tax structure that is quite efficient. “We incorporated the company, and the subsidiary is in Singapore. Singapore has this tax agreement with Japan, where the profit for this development is taxed at 10%,” Tan said, adding that the same thing was done for Kyoto. The tax incentive is called TMK. In the TMK structure, a tokutei mokuteki kaisha (special purpose limited liability company) is used as the SPC where investors can invest by way of preferred equity. Regarding the Okinawa Four Seasons KUALA LUMPUR: The government will work towards enhancing communication among stakeholders before introducing new tax measures, said Finance Minister II Datuk Seri Amir Hamzah Azizan. The service tax rate increase from 6% to 8% implemented from March 1, he added, was based on discussions with various stakeholders. “The service tax rate increase from 6% to 8% was introduced and announced in Budget 2024 … there was a lot of consultation done with various groups to ensure that we figured out the key things,” he told reporters after the launch of Skim Jaminan Pembiayaan Perniagaan (SJPP) and Skim Jaminan Kredit Perumahan (SJKP) yesterday. Amir Hamzah said the key element of the service tax rate increase is to generate higher revenue for the government. However, he added, while the government recognises the need to increase its revenue, it is important to “limit the damage” to stakeholders and those who are involved. Amir said the government will strive to enhance communication among its stakeholders affected by the service tax hike. “At the same time, as anything that goes out, sometimes communication could be a little bit better and we recognise that we should do a little bit more on that side,” he explained. Amir Hamzah said the higher revenue collected from the revision of the service tax will be redistributed to help those in the lower end of society. Asked if the government would consider a more streamlined tax structure like the goods and services tax, Amir Hamzah said it takes time for deliberation before any tax implementation, therefore the government will focus on existing tools or mechanisms in generating higher revenue During the launch, Amir Hamzah announced that SJPP Bhd and SJKP Bhd have started accepting applications from financial institutions which offer special government guarantee schemes tabled in Budget 2024 to assist micro, small and medium enterprises as well as first-time home buyers who do not earn fixed income. From left: Bank of the Ryukyus Ltd chairman Kawakami Yasushi; Tokyo Star Bank deputy director Iwakiri Daisuke; Okinawa Development Finance Corporation director Yabiku Toru; Onna Village Mayor Nagahama Yoshimi; Tan; Fujita Corporation representative director Okumura Yoji; Four Seasons Hotels & Resorts vice-president of residential development James Price; Seikou Okinawa Construction Co Ltd representative director of Liew Ken Woon at the groundbreaking ceremony for Four Seasons Okinawa Resort & Residence. – NORMAN HIU/THESUN █ BYHAYATUN RAZAK [email protected] Berjaya Corp set to expand into Japan’s tourism market oGroup focuses on luxury hospitality, breaks ground on US$1.12 billion Four Seasons Okinawa resort project, Tan said they acquired 100 acres of land, with plans to allocate 32 acres for the Four Seasons resort, ideally situated along the seafront with beach access. Additionally, they have an additional 68 acres of land situated towards the back. The 68 acres will be developed after the completion of the Four Seasons resort. Tan said there are proposals from Japanese corporations, including Mitsui and Mitsubishi, to build premium outlets. “They are both interested. So, we told them maybe we want to get Four Seasons going first before we look into that. And then, of course, we can build other things. We have another 68 acres,” he said. Tan highlighted Okinawa’s appeal to wealthy individuals due to its year-round pleasant climate, with mild winters inviting outdoor activities, and pristine waters drawing enthusiasts for diving, snorkeling and sea adventures. “Over 7 million Japanese visit here. And there were another 1 million from overseas, Korea, Taiwan, China. It is a good tourist destination for people who live around, even countries nearby. So we believe that a lot of wealthy people will buy. And we believe that some corporations will buy to house their guests here,” he said. The Okinawa Four Seasons is the first Four Seasons “resort” in Japan. Tan said the rest are all located in cities, with Tokyo having two, and Kyoto and Osaka one each, all within city limits. Going forward, Tan said the group’s third confirmed Four Seasons will be in Yokohama. “It’s confirmed. We won the land on the beach from the city government. It was based on a contest, and the price is fixed. When they proposed building the Four Seasons, we won the land in Yokohama. But there are still quite a few things to sort out for this project,” he added. █ BYGLORIA HARRY BEATTY [email protected] Govt will enhance communication regarding implementation of new tax measures
BIZ & FINANCE BIZ & FINANCE TUESDAY | MAR 5, 2024 14 READ OUR HERE /thesun Malaysian Paper Data shows Malaysia’s economy robust, says Nga KUALA LUMPUR: Housing and Local Government Minister Nga Kor Ming said Malaysia’s economy is robust with positive fundamentals and prospects, supported by various data in the first quarter of this year. He said the latest updates indicate that the Malaysian stock exchange has increased by 96 points, which is equivalent to a 6.77% rise. Additionally, the unemployment rate of the country has decreased to 3.4%, and the inflation rate has remained stable at 1.5%. “Moreover, there has been a significant increase of 13.3% in the total exports of the country,” Nga said in a statement yesterday. He said Bursa Malaysia is one of the three best-performing stock markets in the Asia-Pacific region this year and the increase in Malaysia’s stock market by 6.77% is the first time in six years. “The surge in the stock market means companies listed on Bursa Malaysia were recording good profits and it also showed an improved business environment in Malaysia,” Nga said. He also said the nation’s economy is supported by the increase in Bank Negara’s international reserves to US$114.5 billion (RM541.4 billion), approved investments reaching RM329.5 billion and the rapid development in the tourism industry. “Based on statistics from the Chinese embassy, more than three million tourists from China are expected to visit Malaysia this year and contribute more to gross domestic product,” he said. However, Nga stressed that economic recovery requires not only an increase in revenue but also Huawei, NUR Power, JS Solar team up to build smart and green industrial park in Kulim PETALING JAYA Huawei Technologies (Malaysia) Sdn Bhd, NUR Power Sdn Bhd and JS Solar Sdn Bhd will jointly develop an inaugural smart and green industrial park within Kulim Hi-Tech Park (KHTP) in Kedah. Under a memorandum of understanding that was formalised recently, collaborative efforts will be centred on the study, design, and formulation of the Green and Smart Energy Transition Roadmap for KHTP, with ambitions of setting a notable benchmark for the nation’s sustainable energy sector. The partnership will see NUR Power undertaking the role of strategic independent power utility operator while Huawei Malaysia takes on the role of technology enabler. JS Solar will serve as the strategic fulfilment partner responsible for project development. Key tasks will include the integration of Huawei Malaysia’s solar smart photovoltaic (PV) technology into NUR Power’s infrastructure to enhance energy generation efficiency and reliability, as well as the implementation of battery energy storage system solutions to mitigate renewable energy variability and enable more renewable energy adoption in KHTP. Huawei Malaysia will also assist NUR Power in establishing electric vehicle charging infrastructure to SMRT makes inroads into Philippines with managed ATM infrastructure deal PETALING JAYA: Pure play enterprise internet of things (IoT) solutions provider SMRT Holdings Bhd’s wholly owned indirect subsidiary N’osairis Technology Solutions Inc (NTSI) has been granted a project by Pito AxM Platform, Inc (PAPI) through a letter of offer for the deployment of managed ATM infrastructure solutions at designated sites across Luzon, the Philippines. PAPI is a fully owned subsidiary of Seven Bank Ltd, a Japanese bank and leading global ATM network and financial service provider with some 27,000 and 17,000 ATMs installed in Japan and outside Japan respectively. PAPI, which was incorporated in the Philippines in 2019, focuses on offering ATM services such as balance inquiry and cash withdrawals and deposits for its customers in the Philippine market. SMRT will deploy its IoT solutions at ATM sites designated by PAPI, by the end of 2024. Following the deployment, SMRT will manage the sites’ network infrastructure for three years, commencing from the installation date of each site. Group managing director Maha Palan said, “Building on our success in the Indonesian market, we are excited to have successfully penetrated the Philippine market with this project. This is indeed a major milestone for the group. With the additional sites that we will manage, we will further grow our recurring income base. Currently, more than 50% of our revenue stems from recurring sources.” As it expands its footprint into the Philippines, it is well-positioned to replicate its proven business model in other potential markets across Asean, he said. a reduction in expenditure. He said the Madani government, under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, will bring long-term reformation by implementing a targeted subsidy policy and rationalising new civil servants’ pensions. “Both of these policy reforms will help strengthen the country’s fiscal and financial position and allow the government to invest more resources in development such as the education, health and public infrastructure sectors. “These are expected to provide more long-term benefits to the people and the country,” he said. – Bernama From left: Huawei Malaysia digital power smart PV director Mason Zhang, Chai, Ikwan Hafiz, Chong and Huawei smart PV business, global marketing, sales & service president Kuang Sai. Local institutions, retailers turn net buyers on Bursa KUALA LUMPUR: Local institutions net bought RM443.5 million worth of equities on Bursa Malaysia last week, after five straight weeks of net selling, MIDF Research said yesterday. In its Fund Flow Report for the week ended March 1, the research house said local retailers net bought RM59.6 million worth of equities last week, after net selling for three consecutive weeks. However, it said foreign investors’ buying spree on Bursa Malaysia halted last week after they net sold RM503.1 million worth of equities, the highest net selling seen in 19 weeks. “They net bought RM189.7 million on Tuesday but were net sellers for the rest of the week, with the highest net selling seen on Wednesday at RM268.3 million,” it added. MIDF Research said the sectors with the highest net foreign inflows were utilities (RM274 million), transport (RM61.4 million) and telecommunications and media (RM31.2 million). Sectors with the highest net foreign outflows were financial services (RM515.9 million), industrial products and services (RM107.6 million), and plantation (RM76.1 million). In terms of participation, it said there were increases in average daily trading volume (ADTV) across all investor classes, with local retailers seeing an increase of 14.%, while local institutions and foreign investors saw increases of 13.1% and 109.8%, respectively. The research house reported a surge in net buying activity by foreign investors in Asia during February, totalling US$10.72 billion across the eight markets it monitored, a stark contrast to January’s figure of US$468.6 million. On Bursa Malaysia, foreign investors remained net buyers for the fourth straight month at RM1.32 billion in February, almost double the amount in January which stood at RM678.4 million. – Bernama Bitcoin breaches RM300,000 mark on Luno PETALING JAYA: Bitcoin breached the RM300,000 mark on Luno yesterday as Bitcoin ETF recorded its highest inflow, surpassing the coins’ daily mining supply. These resulted in a 22% week-long rally that is trading at RM300,513. Last week, Bitcoin reached another milestone after breaking its all-time high in ringgit at RM270,000 in 2021, when the US dollar equivalent at that time was US$65,000. Luno country manager for Malaysia Scarlett Chai, “This bullish momentum for Bitcoin is widely attributed to the positive sentiment surrounding the approval of Bitcoin spot ETFs by the SEC in the US, coupled with significant inflows into these Bitcoin funds with the highest inflow on Wednesday (28 February 2024) at US$673 million”. She said that while the rally presents an opportunity for Malaysians to increase gains, as the leading regulated digital asset exchange in the country, they hope and encourage investors to invest responsibly and sensibly. oFundamentals and prospects positive too foster the growth of electric mobility in the region. Additionally, the three companies will jointly embark on research studies for integrating grid-forming solutions into the KHTP utility grid. This involves exploring cutting-edge technologies and methodologies, such as smart solar PV inverters, to improve the grid’s adaptability to variable renewable energy sources. The evaluation and implementation of low-voltage ride-through solutions will also be undertaken to fortify the grid’s resiliency during sudden voltage dips and ensure grid stability during unforeseen events. Huawei Malaysia digital power business vice-president Chong Chern Peng said, “Huawei Digital Power is poised to revolutionise the generation and consumption of clean power for the project, drawing upon its expertise in end-to-end energy solutions.” NUR Power group managing director Ikwan Hafiz Jamaludin said, “Our joint initiative with Huawei Malaysia and JS Solar is a bold step towards a greener, more resilient future.” JS Solar managing director Johnson Chai said, “Collaborating with Huawei and NUR Power, we will enhance our collective knowledge and capabilities, driving us to new heights in sustainable energy development through KHTP.”
BIZ & FINANCE BIZ & FINANCE TUESDAY | MAR 5, 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] Deleum to fortify presence in Indonesia KUALA LUMPUR: Leading oil & gas (O&G) services provider Deleum Bhd intends to fortify its power and machinery (P&M) business in Indonesia, by signing a heads of agreement (HoA) to undertake a due diligence exercise on an acquisition target in Indonesia. Deleum has entered the HoA with five parties namely OSA Industries Pte Ltd (OSA Industries), PT OSA Industries Indonesia (OSAII), PT OSA Megah Indonesia (PT OSA Megah), as well as Ong Siow Aik, a Singaporean, Erik Aristino and Fenty Herlinda, both Indonesian citizens. The HoA entails all parties to collaborate over a six-month period in facilitating Deleum’s due diligence on OSAII and PT OSA Megah, as well as to negotiate and finalise the oSigns HoA for due diligence exercise on acquisition target AirAsia: 22,000 seats at fixed low fares for Hari Raya SEPANG: As part of its commitment to enable more Malaysians to be back home with their families and loved ones especially for the festivities, AirAsia has mounted over 22,000 seats at fixed fares for late-night flights in conjunction with the upcoming Hari Raya celebration between Peninsular and East Malaysia. From April 5-17, guests can fly back to their hometown between Kuala Lumpur and Kuching, Sibu, Bintulu or Miri; as well as between Johor Baru and Kuching, Sibu or Miri at RM298 one-way and between Kuala Lumpur and Kota Kinabalu, Sandakan or Tawau; as well as between Johor Baru and Kota Kinabalu at RM348 one-way. The promotional fares are available for booking starting today until April 17 on airasia.com and the AirAsia MOVE app, which was previously known as airasia Superapp. In addition to 122 late-night flights at fixed fares to 11 routes between Peninsula and East Malaysia, AirAsia is also operating 735 flights weekly with regular fares to Sabah, Sarawak and Labuan in support of the government’s festive season initiative. Transport Minister Anthony Loke said, “The government remains committed to facilitating air travel for Malaysians at reasonable and affordable fares. These commitments represent a collaborative effort with industry players such as AirAsia to ensure the welfare of Malaysians. Thus, I am pleased to support AirAsia’s fixed fares initiative for the upcoming Hari Raya celebration. Moreover, the recent announcement of a maximum fare of RM599 for one-way economy class flights to Sabah, Sarawak and Labuan in the days leading up to Hari Raya Aidilfitri demonstrates our proactive approach to meet the needs of travellers while promoting inclusivity and affordability.” CGS International appoints Shahril Ridza, Khairy Jamaluddin to its board KUALA LUMPUR: CGS International Securities Malaysia Sdn Bhd (CGS MY) has appointed prominent corporate leader Tan Sri Shahril Ridza Ridzuan, and entrepreneur and former health minister Khairy Jamaluddin Abu Bakar as its independent non-executive directors effective Feb 28. They will join six other board members – Carol Fong, Yuen Kwok Wai, Chan Yuen May, Azizah Mohd Yatim, Alan Inn Wei Loon, and Khairi Shahrin Arief Baki. CEO Azizah Mohd Yatim said that with their recent change in ownership to become wholly owned by CGS International Holdings Ltd, they can benefit from the credentials, expertise and network of these well-respected individuals to strengthen the competencies of their board. “We are confident that the combined depth and diversity of our board, which includes both private and public representatives in areas of business, finance, investment, and policy, will create a robust leadership that will bring the company towards being a world class investment bank in Asia,” she added. definitive agreements for the proposed acquisition. The HoA signifies Deleum’s strategic direction and commitment to strengthen its regional presence in the region, to create synergies and aims to bolster the group’s earnings as well as its shareholder value. The proposed acquisition is also being supported by an international service company with whom both Deleum and OSAII have had a good working relationship over the years. Through the group’s subsidiary Deleum Services Sdn Bhd will acquire 70% of the issued share capital of OSAII held by Ong Siow Aik and OSA Industries for a consideration of US$7 million (RM33 million), representing 70% of the total valuation of US$10 million, subject to satisfactory outcome of the due diligence and finalisation of the definitive agreements. OSAII, established in 1994 in Indonesia, specialises in the repairing, reconditioning and testing of valves, offering expert solutions to ensure optimal functionality. With a focus on quality and reliability, it also provides a diverse inventory of valves and supplies, catering to various industry needs. With its headquarters located in West Java, Indonesia, OSAII has built a reputable presence in the region. Deleum Bhd group CEO Rao Abdullah said, “Growing our presence in Indonesia is our strategic goal, given the enormous potential for our business growth in this market. This HoA represents the critical first step towards realising our mission. We are committed to using this cooperation as a springboard for our larger goal, capitalising on the numerous opportunities that Indonesian market offers us.” As they proceed with due diligence and negotiation, he added they remain focused on delivering sustainable outcomes that align with their vision of being a leading player in the region. China-based GDS Holdings set to expand business in Johor JOHOR BARU: China-based information technology company GDS Holdings Ltd is set to expand its business in Johor. Johor Mentri Besar Datuk Onn Hafiz Ghazi said GDS Holdings which is a leading data centre operator has invested RM14.33 billion in Johor with the opening of two data centres in Nusajaya Tech Park and Kempas Tech Park. “I’m happy when GDS Holdings stated its readiness to expand its business in Johor and is confident Johor is capable of becoming a competitive artificial intelligence (AI) hub,” he said in a post on Facebook on Sunday. Onn Hafiz who is currently on a working visit to the Shenzhen Special Economic Zone, China, from March 2-7, said the Johor state government’s delegation held a meeting with GDS Holdings and has gained valuable insights about the company’s business framework. “I’m amazed to learn about their vision and business model in developing data centres which has successfully contributed to making China a smart nation and digital economy powerhouse,” he said. He added that as a global giant company, GDS Holdings now has more than 100 data centre projects across Asia and is ranked ninth out of the top 250 data centre companies in the world in 2024. “With the establishment of the Johor-Singapore Special Economic Zone, I am confident that Johor can attract more investors to the state and create high-impact investment packages, besides emulating Shenzhen as a leading global investment hub,” he added. – Bernama
BIZ & FINANCE BIZ & FINANCE TUESDAY | MAR 5, 2024 16 Australia, Indonesia should team up: ACEN SYDNEY: Top lithium producer Australia and major nickel suppliers Indonesia and the Philippines could team up to develop regional battery storage systems, the head of Philippine energy firm ACEN said yesterday. “It’s worth noting that there is concentration of risk for lithium battery production, with over 70% being produced in China alone,” ACEN CEO Eric Francia told delegates to an Australia-Asean summit in Melbourne. “With Australia being the top lithium producer globally, and Indonesia and the Philippines being the top nickel producers, there are potential opportunities to establish a regional supply chain and cater to the significant demand for battery storage within our region,” he said. Any opportunities for electric vehicle batteries would make sense to be in Thailand, while Indonesia may offer more opportunity for large scale battery production, especially as solar power is helping to green the country’s power supply, he added on the sidelines of the event. – Reuters Bitcoin bounces beyond US$64,000 SINGAPORE: Bitcoin scaled a two-year high yesterday, breaking US$64,000 as a wave of money carried it within striking distance of record levels. It touched US$64,285 early in the Asian day, its highest since late 2021, and was last 2% firmer for the session at US$63,850. Bitcoin’s record high is US$68,999.99 set in November 2021. The largest cryptocurrency by market value has gained 50% this year and most of the rise come in the last few weeks where trading volume has surged for US-listed bitcoin funds. Spot bitcoin exchange-traded funds were approved in the United States earlier this year. “The flows are not drying up as investors feel more confident the higher price appears to go,” said Markus Thielen, head of research at crypto analytics house 10x Research in Singapore. Smaller rival either has hitched a ride on speculation that it too may soon have exchange-traded funds driving inflows. It is up 50% year-to-date though at US$3,490 yesterday. “In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer,” said Brent Donnelly, trader at analysis firm Spectra Markets. – Reuters Philippines hopes for EU trade talks ‘soon’ SYDNEY: The Philippines hopes to launch formal free trade agreement negotiations with the European Union “very soon”, Foreign Minister Enrique Manalo said in an interview yesterday. The nation, which depends heavily on trade with China, wants to expand its economic relations with other countries to achieve greater “resiliency”, the minister said. “We’re hoping ... to very soon begin free trade negotiations with the EU,” Manalo said. The Philippines has been in preliminary talks about a free trade deal with the 27-nation bloc for months. A previous effort almost a decade ago stalled amid EU concerns about then president Rodrigo Duterte’s deadly drug war. “What we’re really aiming for is the notion of greater economic resilience,” the minister said, underscoring the importance of being able to adapt to “sudden changes”, whether man-made or natural. The Philippines is focused on creating “greater economic security and economic resiliency, which in turn contributes to your own national security”, Manalo said. Brussels and Manila would seek to establish greater cooperation in the area of critical minerals, he said, using existing supply chains but with more processing activity in the Philippines. – AFP Thai economy in critical situation: PM’s aide BANGKOK: Thailand’s economy is in a “critical situation”, the prime minister’s chief of staff said yesterday, stressing the need for stimulus measures aimed at tackling household debt, boosting tourism and attracting foreign investment. “Figures show we are not in good shape,” Prommin Lertsuridej told reporters. His remarks come as Prime Minister Srettha Thavisin’s government pushes to revive Southeast Asia’s second-biggest economy, which has suffered from weak exports and a slow recovery from the pandemic compared to regional peers. The economy unexpectedly contracted in the fourth quarter of 2023 and policymakers have downgraded the growth outlook for this year, adding to pressure on the central bank to give in to the prime minister’s near-daily demands for an interest rate cut. Srettha has outlined ambitions to make Thailand a regional hub for several sectors including electric vehicles (EVs), aviation, finance and the digital economy. He has also urged lawmakers to boost Thailand as a food, wellness and tourism hub. “We are doing everything we can,” Prominn said, referring to measures including oHe says stimulus needed to tackle household debt, boost tourism and attract investment visa-free tourism and policies to address household debt that is at a ratio of 91% of gross domestic product. He also said Thailand must “improve almost every kind of legal framework” to make it easier to do business. He added companies like Alphabet Inc’s Google and Tesla had expressed interest in investing in the country. Critics have cautioned that the government’s raft of measures – especially a US$14 billion (RM66 billion) “digital wallet” handout scheme – may not be fiscally viable and could stoke inflation. Prommin said the government’s 3.48 trillion baht (RM460 billion) Budget should be approved and ready to spend by next month. The budget has been on hold since October due to a delay last year in forming a government. – Reuters India likely to reduce palm oil purchases NEW DELHI: India, the world’s biggest vegetable oil importer, is expected to buy larger volumes of soyoil this year, while purchases of palm oil are likely to decline, a top dealer said yesterday. Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm, said India’s soyoil imports will rise to 4.3 million metric tons in the 2023/24 marketing year from 3.5 million tons in 2022/23. Palm oil imports will be lower at 9.2 million tons in 2023/24, compared with 10 million tons in 2022/23, Bajoria said on the sidelines of the Palm and Lauric Oils Price Outlook Conference 2024. Negative refining margins in palm oil versus positive margins in soyoil have prompted a switch from palm oil to soyoil in recent weeks, according to traders. Lower purchases of palm oil by India could keep inventories elevated in top producers Indonesia and Malaysia, and weigh on benchmark futures. Bajoria said India’s imports of sunflower oil will remain at about three million tons for the current marketing year, which would see the country’s total vegetable oil imports at 16.5 million tons in 2023/24, unchanged from the previous year. “Overall, domestic production of vegoils is going to be around 10 million tons and imports will be at 16.5 million tons. So total consumption will be around 26.5 million tons.” Local supplies of soybean, cottonseed, rice bran and mustard oils were currently keeping a lid on imports by India. However, palm oil imports should rise from May to July, Bajoria said. The country’s palm oil imports are expected at 700,000 tons to 750,000 tons per month in May, June and July, Bajoria said. India’s palm oil imports in January dropped more than 12% from a month ago to a three-month low of 782,983 tons. India buys palm oil mainly from Indonesia, Malaysia and Thailand, and soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. – Reuters Trucks are seen near a palm oil plantation at a village located near Indonesia’s projected new capital, known as Nusantara National Capital, in Sepaku, East Kalimantan province. – REUTERSPIC
BIZ & FINANCE BIZ & FINANCE TUESDAY | MAR 5, 2024 17 Japan govt considers calling end to deflation TOKYO: Japan is considering calling an end to deflation in the wake of rising prices, Kyodo news agency reported, a move that would turn a new page for the world’s fourth-largest economy after decades of economic stagnation scarred a generation of workers and investors. The weekend report, citing sources with knowledge of the matter, highlights growing market bets that the Bank of Japan (BOJ) will soon exit its ultra-easy policy settings. However, it was not clear from the Kyodo report if the government would officially declare an end to deflation. In the last few years the government has maintained that Japan was no longer in deflation, but it has stopped short of declaring a complete victory over falling prices. A formal declaration would draw a line under nearly two decades of falling prices and economic stagnation that followed the collapse of its “bubble era” boom that stretched from 1986 to 1991. Last week, the Tokyo Nikkei oKyodo report highlights growing market bets that negative interest rates will soon end benchmark soared past the record high set during heady days of the bubble economy over three decades ago. Chief Cabinet Secretary Yoshimasa Hayashi told a news conference that Japan has not reached the stage yet where it can call a complete end of deflation, shrugging off the Kyodo report. With inflation having exceeded the BOJ’s 2% target for well over a year, many market players expect the central bank to exit negative interest rates in coming months in what would be a landmark move away from years of ultra-loose monetary policy. A Reuters poll of economists forecast the BOJ will end its negative interest rate policy, in place since 2016, by next month. “It may suggest that the government and the BOJ may be coordinating with each other to let the markets factor in the prospects for declaring an end to deflation in future and terminating negative interest rates,” said Itochu Economic Research Institute chief economist Atsushi Takeda, referring to the planned government announcement. Prime Minister Fumio Kishida or Cabinet ministers may make the announcement at a government panel meeting, news conference or in a monthly economic report rather than at a formal venue like the cabinet meeting, Kyodo reported. The government will make a decision after determining whether annual labour-management wage talks due March 13 will turn out strong enough to offset price hikes and also consider the outlook on price trends, Kyodo reported. The government acknowledged that Japan’s economy was in gradual deflation for the first time in 2001, with the nation struggling for much of the period since then to break a vicious cycle of lower corporate profits, tepid wages and weak private consumption. The government would scrutinise a broad range of indicators, such as consumer prices, unit labour costs, output gap and GDP deflator, Kyodo said, citing the sources. – Reuters China economy of ‘great concern’ at political meetings BEIJING: A spokesman for China’s political advisory body said on Sunday the economy, especially youth employment, was of “great concern” to its delegates on the eve of annual legislative meetings in Beijing. Thousands of delegates from across the country will convene in Beijing this week for the start of the ruling Communist Party’s yearly conclave, known as the “Two Sessions”. The meetings come as the world’s second-largest economy battles a range of challenges from a protracted property crisis to flagging domestic consumption and persistently high youth unemployment. Liu Jieyi, a spokesman for the Chinese People’s Political Consultative Conference (CPPCC), told a news conference on Sunday that “economic topics are of great concern to our representatives”. “The employment of young people, especially fresh graduates, is a matter of great concern,” he said. The country reported economic growth of 5.2% last year, one of its slowest rates in decades. Youth unemployment officially stood at around 15% at the end of 2023, after the statistics bureau adjusted its calculation methods. It stopped publishing the politically sensitive figure for several months from last summer as the jobless rate soared well above 20%. Liu said China’s economy still had “a good foundation and favourable conditions for promoting high-quality development”. The country had also proven “resilient” in the face of “external shocks ... and internal difficulties”, he said. The CPPCC will run until the morning of March 10, Liu said. Its discussions are relatively low-stakes compared to the near simultaneous gathering of the country’s legislature, the National People’s Congress. – AFP Vanke stock, bonds sell-off resumes on liquidity concerns HONG KONG: Investors sold China Vanke stock and bonds yesterday, picking up from where they left off last week as concern over the developer’s liquidity trumped fundraising plans and assurance from a business partner. The price of China Vanke shares in Hong Kong fell 7.1%, having finished last week down 8.1%. The developer’s Shenzhen-listed shares lost 4.7%, exacerbating last week’s 3% decline. The state-backed firm’s onshore bond due 2028 was temporarily suspended from trading after plunging over 20% to 64 yuan in the afternoon, while a 2027 bond reversed gains to ease 3.6%. Its other yuan bonds generally stabilised, however, with small gains of over 1%. China has struggled to contain the debt crisis that has gripped the sector since mid2021 and seen property giants including China Evergrande Group and Country Garden default on billions of dollars in debt. Shenzhen-based Vanke, a well-known household name with high quality projects across major cities, had been seen by the market as a financially sound developer, especially with backing from its largest shareholder, state-owned Shenzhen Metro. Any repayment trouble by Vanke could further hamper market confidence, analysts said. Market concern came after credit data provider Reorg said yesterday China’s second-biggest property developer by sales – after state-owned Poly Development – was in discussion with insurers to extend debt maturities, and that management had visited Beijing to seek government assistance. Local media subsequently reported that New China Asset, a unit of New China Life Insurance, had rejected proposals to extend maturities of China Vanke debt it held. On Sunday, New China Asset said it has been maintaining normal business cooperation with China Vanke, and that reports about the pair are “untrue”. China Vanke yesterday declined to comment when contacted by Reuters. Last Friday, China Vanke said it planned to raise 1.2 billion yuan (RM787 million) by spinning off three warehouse logistic parks owned by a unit and listing them in Shenzhen through an infrastructure real estate investment trust. – Reuters Nikkei surpasses 40,000 points for first time TOKYO: Japan’s benchmark Nikkei index surpassed the 40,000 mark for the first time yesterday following gains on Wall Street. The Nikkei added 0.84%, or 334.87 points, to 40,245.69 shortly after the opening bell, while the broader Topix index rose 0.30% or 8.07 points to 2,717.49. The US dollar stood at ¥150.04, compared with ¥150.11 seen last Friday in New York. Tokyo and other major global shares have steadily gained since last year, and analysts predict the Nikkei should gain even further, lifted by rallying Wall Street, robust corporate earnings and strong hopes for artificial intelligence technologies. “The strong performance of global equity markets, including the MSCI World, Japanese Nikkei 225, Nasdaq, and S&P 500 indexes, which all closed at record highs last week, provide favourable trade winds for Asian markets as the new week begins on Monday,“ Stephen Innes of SPI Asset Management said. “The positive sentiment is driven by several factors, including the hope for US interest rate cuts, signs of cooling inflation, and a surge in interest surrounding artificial intelligence within the big tech sector. “These factors collectively contribute to the positive tone in global markets, which is expected to bolster Asian markets and inspire confidence among investors as they commence trading for the week.” On Feb 22, the Nikkei finally broke through a record high set just before an asset bubble in Japan catastrophically burst in the early 1990s. Among major shares, multinational investment holding company SoftBank Group jumped 2.60% to ¥9,139. Semiconductor shares rallied, adding to recent strong gains. Tokyo Electron roared 3.15% to ¥39,590. Advantest surged 2.65% to ¥7,308. Industrial robot maker Fanuc added 1.60% to ¥4,521. But Toyota gave up early gains and dropped 1.06% to ¥3,641 in early trade, as did Sony Group, which lost 0.91% to ¥13,095. – AFP Children and their teachers walking past an electronic screen displaying Nikkei share average outside a brokerage in Tokyo yesterday. – REUTERSPIC
BIZ & FINANCE BIZ & FINANCE TUESDAY | MAR 5, 2024 18 LONDON: Britain’s Chancellor of the Exchequer Jeremy Hunt on Sunday talked down the likelihood of tax cuts in this week’s Budget, pledging “prudent and responsible” measures “for long term growth”. The finance minister had been widely expected to cut taxes in tomorrow’s Budget, in a move seen as a way of closing the gap on the opposition Labour Party ahead of elections. Prime Minister Rishi Sunak’s Conservative Party is trailing in the polls with pollsters predicting that Labour leader Keir Starmer is on track to win the keys to Number 10 Downing Street at a general election later this year. Voters, hit by a cost of living crisis, have repeatedly punished the Conservatives in a string of recent by-elections. With the Bank of England’s main interest rate sitting at a 16-year high of 5.25%, millions of voters are also suffering from soaring mortgage repayments. “It’s going to be a prudent and responsible Budget for long term growth,” Hunt told Sky News television channel. Official data last month showed Britain had sunk into recession after the economy shrank in the final two quarters of 2023. While economists predicted that the recession could be short-lived, the data has been a big setback for Sunak, who has placed economic growth as a key priority. But Hunt said he would not cut taxes at the expense of future generations. “I think the most unconservative thing I could do would be to cut taxes by increasing borrowing,” he told the BBC. “Because that’s just cutting taxes and saying that future generations have to pick the tax up.” Although he would not be drawn on tax measures expected in the Budget, he did announce two packages of measures due to be included in it. The first, said to be worth £360 million (RM2.1 billion), would be for research and development and manufacturing projects across the life sciences, automotive and aerospace sectors. Hunt said the investment would make the UK a “world leader in manufacturing” securing the “highly skilled jobs of the future”. Another package, worth £800 million, included technology reforms designed to make public services more efficient and reduce paperwork. As part of the package, police will use drones to assess incidents such as traffic collisions and artificial intelligence will be deployed to speed up the results of cancer scans in the state-run National Health Service. “There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick,” Hunt said in a statement. According to The Sunday Times, the Office for Budget Responsibility told Hunt last Wednesday that he has £12.8 billion of headroom to play with – more than £2 billion less than the figure the Treasury is said to have previously been basing its calculations on. – AFP Trump tariffs would shave 1.2% off German GDP: Study BERLIN: Germany’s economy would contract by at least 1.2% by 2028 should former US president Donald Trump regain office and hike import tariffs as much as he has proposed, the German Economic Institute (IW) argued in a paper published yesterday. The IW is financed by prominent German business associations and carries weight among Berlin policymakers. Trump has proposed slapping a 10% tariff on all imports and hiking those on Chinese imports to 60% were he to defeat President Joe Biden in the Nov 5 US election. This tariff shock would shave 1% to 1.4% off US economic output in the early years mainly due to higher consumer prices and unemployment weighing on consumption and a confidence shock that would affect investment in the short term, according to the IW study. But improvements in the trade and fiscal balance would allow US gross domestic product to recover to be only slightly negative by 2028. The impact on Europe and particularly on export-oriented countries like Germany would be much more severe, according to the IW study, even as they already struggle with high energy prices and a lack of skilled labour. German GDP would drop by 1.2% by 2028, hit by the fall in exports and a subsequent drop in private investment, the study showed. If China were to retaliate with its own hike in import duties, it could drop as far as 1.4%. “The EU should prepare for such a scenario UK finance minister now,” the IW warned. – Reuters dampens hopes of tax cuts oHunt pledges ‘prudent’ Budget for ‘long-term growth’ as election looms Several countries extend oil output cuts to boost prices VIENNA: Moscow, Riyadh and several other OPEC+ members on Sunday announced extensions to oil production cuts first announced last year as part of an agreement among oil producers to boost prices following economic uncertainty. The plan to extend cuts to mid-2024 comes on top of previous cuts to both oil output and exports as some of the world’s largest energy producers drive to push up market rates. Saudi Arabia’s energy ministry said it would cut its production by one million barrels per day (bpd) from April to June (Q2), while Russia announced 471,000 bpd of cuts in Q2. “In order to maintain market stability, these additional cuts will be gradually restored depending on market conditions,” after the end of the second quarter, said Russia’s Deputy Prime Minister Alexander Novak. The measures for both countries are in addition to a 500,000 bpd reduction announced in April 2023, which runs until the end of 2024. UAE, Kuwait, Iraq and Kazakhstan followed suit, saying they would extend existing voluntarily cuts until the end of June. The OPEC+ oil alliance of 22 nations has implemented supply cuts of more than five million barrels per day since the end of 2022. Russia’s invasion of Ukraine in 2022 sent oil prices soaring to US$140, raising earnings across the industry. The West has tried to target Moscow’s energy exports under sanctions imposed over the Kremlin’s offensive in Ukraine, forcing Russia to ramp up supplies to countries like China and India. Oil prices surged last Friday in anticipation of the new extension. The US West Texas Intermediate (WTI) passed US$80 for the first time since November while the North Sea Brent Crude Barrel hit a monthhigh US$83.55. In 2016, the crude oil producing OPEC alliance, 13 members headed by Riyadh, formed OPEC+ with an additional 10 countries, including Moscow, to ease prices following US competition. “The whole purpose of OPEC+ was to come up with a wider group so that there is no need for voluntary cuts,” Rystad Energy economist Jorge Leon told AFP. “Everybody contributes and no one is going alone.” But for almost a year now, Saudi Arabia has done without unanimity due to the lack of agreement among members. Voluntary cuts, Leon warned, are a “clear signal that the cohesion of OPEC+ is not great”. In a surprise move in December, Angola exited the alliance over a disagreement on a decision to cut production, backed by Riyadh. For Leon, “more countries will need to contribute to official cuts” as part of a joint agreement or risk an increasingly faltering alliance. – AFP Group raises bid for Macy’s to US$6.6b WASHINGTON: An investor group that offered to buy the struggling US department store chain Macy’s in December and was turned down said on Sunday it has sweetened its bid. Arkhouse Management and Brigade Capital Management, which originally offered US$5.8 billion, have upped this by nearly US$1 billion by now offering US$24 per share, compared to US$21 back in December. This values the takeover at US$6.6 billion. The new offer represents a 33.3% premium to where Macy’s shares closed Friday, the bidders said in a statement. Macy’s confirmed in a statement that it had received the new offer and would evaluate it. Last week, the iconic 166-year-old retailer announced plans to close almost a third of its Macy’s stores by 2026 while building up its upscale Bloomingdale’s and Bluemercury brands. “We remain frustrated by the delay tactics adopted by Macy’s board of directors and its continued refusal to engage with our credible buyer group,“ the investors said. “While the restructuring plan Macy’s unveiled failed to inspire investors, the fourth quarter earnings and year-end results have given us further confidence in the long-term prospects of the company if redirected as a private firm.” – AFP Hunt appearing on the BBC’s Sunday Morning political television show with journalist Laura Kuenssberg. – AFPPIC/JEFF OVERS-BBC