CHINA SEEKS TO CONTAIN FALLOUT FROM MOODY’S BEARISH BOND OUTLOOK p17 CEOMorningBrief THURSDAY, DECEMBER 7, 2023 ISSUE 682/2023 theedgemalaysia.com This is the season of stories yet to be written. Start Yours This is the season of stories yet to be written. Start Yours HOME: SC to debut streamlined transfer mechanism to Main Market — chairman p2 UBS emerges as substantial shareholder in BPlant amid privatisation p3 Sime Darby to make takeover offer for remaining stake in UMW Holdings p4 WORLD: McKinsey sees AI adding up to US$340 bil to Wall St profit p20 Wanda’s billionaire founder sells film unit as debt pressure builds p24 Report on Page 3. GAMUDA BAGS RM1.77 BIL SINGAPORE MRT PROJECT Report on Page 4. IOI Properties to buy W Kuala Lumpur hotel from Tropicana for RM270 mil cash BLOOMBERG
THURSDAY DECEMBER 7, 2023 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] SC to debut streamlined transfer mechanism to Main Market — chairman KUALA LUMPUR (Dec 6): The Securities Commission Malaysia (SC) is seeking to introduce a streamlined transfer mechanism that will enable qualifying ACE Market companies to transfer to the Main Market beginning in 2024, said its chairman Datuk Seri Dr Awang Adek Hussin. He said the SC, together with Bursa Malaysia, is working to improve efficiency in the public markets to facilitate a start-up’s initial public offering (IPO), with measures such as reducing time-tomarket for companies seeking to list on the stock exchange. “Details of the proposed automatic transfer framework will be announced later this month. The introduction of a new simplified and accelerated transfer process will facilitate a seamless transfer of listings to promote sizeable and quality ACE Market companies to the Main Market. “By being in the Main Market, it will open up opportunities for foreign investors to participate. This should encourage greater foreign participation in our capital market,” Awang Adek said in his speech at the Malaysia Venture Forum 2023 here on Wednesday. He said capital markets play an important role in enabling easier access to funding for start-ups and micro, small and medium enterprises (MSMEs), thus the Bernama Bernama SC had taken proactive steps to facilitate fundraising for businesses, particularly in the early stage of financing. “Our efforts include allowing flexible financial instruments, facilitating more efficient exit options, encouraging more investments into private markets, and forging partnerships and collaborations, all of which are pivotal in nurturing a vibrant venture capital and private equity ecosystem,” he said. Awang Adek said SC and Bursa will continue to facilitate exits for promising companies, especially in the technology sector, and recent capital market initiatives aimed at supporting IPO-ready companies are expected to have a positive impact. “These include tax deductions for eligible tech-based companies on the Main Market and the ACE Market. Concessions HOME on the soon-to-be-implemented capital gains tax will be made available to IPOs on Bursa. “These measures are designed to enhance fundraising efforts, sustain the vibrancy of the IPO market, and improve trading liquidity,” he said. The SC is seeing a healthy pipeline of IPOs this year, with 32 companies approved to date for listings on Bursa, many of which are tech-related. Malaysia has implemented targeted policies to foster a more dynamic start-up ecosystem, and this includes RM90 billion to be invested in the New Industrial Master Plan 2030. Start-ups and SMEs are expected to play a crucial role contributing an anticipated RM30.8 billion in gross domestic product by 2030. The SC is also looking into introducing a small offering exemption in the Capital Markets and Services Act next year, facilitating a clear safe harbour for offerings of a certain size to sophisticated investors. “This is intended to reduce the regulatory burden in the fundraising process for start-ups and MSMEs, as well as provide clarity for instruments like simple agreements for future equity and convertible notes, which are becoming increasingly common in start-up funding,” he said. Energy efficiency, electricity supply bills’ second reading postponed KUALA LUMPUR (Dec 6): The second reading of the Energy Efficiency and Conservation Bill 2023 and the Electricity Supply (Amendment) Bill 2023 in Dewan Negara has been postponed by the Ministry of Natural Resources, Environment and Climate Change (NRECC). Senator Datuk Ahmad Ibrahim, in a statement on Wednesday, said that the postponement was following his and seven other senators’ request to Dewan Negara president Tan Sri Dr Wan Junaidi Tuanku Jaafar to amend the bills. He said this was because the bills did not ensure that the same rights were given to Sarawak, as enshrined in the Energy Commission Act 2001 and the Electricity Supply Act 1990. “After a copy of the bills was distributed to members of the Dewan Negara, our research found that the bills allowed the NRECC Minister (Nik Nazmi Nik Ahmad) to extend the use to Sarawak. “This is not in line with previous practice by the federal government, such as the Energy Commission Act 2001 and the Electricity Supply Act 1990, where its use is suspended in Sarawak,” Ahmad Ibrahim said. He said that, following the proposed amendments, the president of Dewan Negara informed on Wednesday that the NRECC will engage with the Sabah and Sarawak governments to align the two bills. “We welcome the postponement by the NRECC, who took note of our concerns, which are related to Sarawak’s autonomous power in the field of electricity, and also the diverse energy resources available in Sarawak,” he said.
thursday december 7, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 6): Gamuda Bhd recorded a net profit of RM195.04 million in the first quarter ended Oct 31, 2023 (1QFY2024), compared to RM1.168 billion a year ago. The significant discrepancy in net profit is due to the earnings of RM1 billion from the sale of highways last year. Earnings per share also slipped to 7.26 sen compared to 45.32 sen, the construction giant said in a bourse filing on Wednesday. Quarterly revenue doubled to RM2.8 billion from RM1.3 billion in the previous corresponding quarter, on the back of higher contribution from KUALA LUMPUR (Dec 6): In a surprise move, Swiss-based multinational investment bank UBS Group has emerged as a substantial shareholder in Boustead Plantations Bhd (BPlant), which is in the midst of being privatised, with a 5.36% stake, or 120.06 million shares. UBS had initially acquired 20.71 million shares in BPlant, equivalent to a 0.92% stake, on Nov 10, 2023, which increased its stake to 5.21%, or 116.67 million shares, surpassing the minimum 5% of the definition of a substantial shareholder, according to the Securities Industry (Reporting of Substantial Shareholding) Regulations 1998. Following that, UBS continued to trade in the shares from Nov 14 to Nov 30, ending up with a 5.36% stake as at Dec 6, according to BPlant’s filings to Bursa Malaysia. According to Bloomberg, UBS is now the third largest shareholder in BPlant after Lembaga Tabung Angkatan Tentera (LTAT) (43.59%) and Boustead Holdings Bhd (24.42%), followed by Kuala Lumpur KUALA LUMPUR (Dec 6): Gamuda Bhd’s Singapore branch (GBSG), an operating unit of the group, has secured a S$509.568 million (RM1.77 billion) design and construction contract for the West Coast station and tunnel. This project is part of Singapore’s 15-kilometre (km) Cross Island Line Phase 2 (CRL2) Mass Rapid Transit (MRT) line, which is also Singapore’s eighth MRT line, comprising six stations. In a Wednesday bourse filing, the construction giant announced that the contract, awarded by the Singapore Land Transport Authority (LTA), includes the construction of one underground station and two tunnels, covering approximately 1.9km. The commencement date for the West Coast station and tunnels project is scheduled within the first quarter of 2024, with completion expected by 2032, according to Gamuda. Gamuda said that the main risks for the West Coast station and tunnel project are similar to several MRT stations and tunUBS emerges as substantial shareholder in BPlant amid privatisation Gamuda bags RM1.77 bil Singapore MRT project by Choy Nyen Yiau theedgemalaysia.com by Emir Zainul theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com overseas projects, as overseas revenue tripled to RM2.1 billion. The group’s construction and property earnings grew 35% to RM195 million in 1QFY2024, compared with 1QFY2023’s earnings of RM145 million. On a quarterly basis, the group’s net profit came in 23% lower against the RM252 million reported in the immediate preceding quarter (4QFY2023), mainly due to lumpy property earnings in 4QFY2023. Gamuda declared a single-tier interim dividend of six sen per share, to be paid at a later date. Read the full story neling projects successfully completed for LTA in comparable ground conditions. The project will utilise two slurry tunnel boring machines for the tunneling works, with station excavations involving rock removal. “The West Coast station & tunnel project is anticipated to make a positive contribution to the revenue and earnings of the Gamuda group for the financial year ending July 31, 2024,” it added. In a separate statement released on Wednesday, Gamuda said the latest project marks its first independent venture in Singapore without joint venture partners, showcasing the group’s strong delivery track record in the region and solidifying its role as a key player in the city-state’s transportation infrastructure development. This is also Gamuda’s second railway project in Singapore, after the Defu station and tunnels, and its third infrastructure project after the Gali Batu multi-storey bus depot. Shares in Gamuda closed one sen or 0.23% lower at RM 4.41 on Wednesday, giving the group a market capitalisation of RM11.9 billion. However, the stock has risen 21.11% year to date. Gamuda records RM195 mil profit in 1QFY2024 Kepong Bhd (KLK) (3.09%). The initial shares acquisition took place on the same day that the Armed Forces pension fund made an unconditional mandatory takeover offer for the BPlant shares that it does not own, at RM1.55 per share, for BPlant to be taken private. This follows LTAT’s agreement with Boustead Holdings to acquire 739.2 million shares or a 33% stake in BPlant, after a RM1.15 billion takeover bid by KLK fell through in October. The Finance Ministry had agreed to provide a government guarantee for LTAT to take out a RM2 billion loan to undertake the general offer. KLK first announced on Aug 24 that it planned to acquire the 33% stake for RM1.15 billion or RM1.55 per share, and would extend a mandatory general offer with plans to increase its stake to 65%. LTAT and Boustead Holdings, meanwhile, would own the remaining 35%, with BPlant being taken private. Opposition leaders claimed that the deal did not fit with the government’s aim of achieving Bumiputera corporate equity target of 30% by 2025, as underlined in the 12th Malaysia Plan. Meanwhile, Boustead Holdings, which was privatised by LTAT earlier this year, needs RM800 million to meet its debt obligations.
thursday december 7, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 6): Sime Darby Bhd will issue an unconditional mandatory takeover offer to acquire the remaining 38.82% stake it does not own in UMW Holdings Bhd for a cash price of RM5.00 per share, it said in a statement on Wednesday. This follows the group’s conditional share purchase agreement with Permodalan Nasional Bhd (PNB) on Aug 24, 2023, to acquire 714.81 million shares or a 61.18% stake in UMW, making Sime Darby the largest shareholder in the automotive group. Accordingly, the group has made no adjustment to the offer price at RM5 per share as of the date of the notice on Wednesday, but obligated to reduce the offer price by the amount equivalent to the net distribution per offer share with UMW, in the case of the holder exceeding the offer’s timeline. At RM5, UMW is valued at RM5.84 billion, with the 38.82% stake valued at RM2.27 billion. At the closing price of RM4.94 on Wednesday, the group boasts a market capitalisation of RM5.77 billion. The UMW takeover has already received a majority support from Sime Darby’s shareholders, with 1,159 shareholders or 1.78 billion shares in favour of the deal, based on the outcome of its extraordinary general meeting on Nov 16. Shareholders who participated in the voting represented 26% of Sime Darby’s total share capital of 6.82 billion shares, with PNB — which has a 47.25% interest, and 15.5%-shareholder Employees Provident Fund (EPF), abstained from voting. The takeover, which is expected to see UMW delisted from Bursa Malaysia, will create a behemoth industrial and motor group, with presence in various markets in Asia-Pacific. Sime Darby, which is known for its luxury marques such as BMW, Jaguar, Land Rover and Porsche, will add mass market brands under UMW, such as Toyota, Lexus and Perodua, to its stable. Read also: UMW signs RM50 mil deal with IOI Corp Sime Darby to make takeover offer for remaining stake in UMW Holdings KUALA LUMPUR (Dec 6): Property developer IOI Properties Group Bhd plans to acquire five-star hotel W Kuala Lumpur (W KL) in Jalan Ampang, KL for RM270 million, cash, from property group Tropicana Corp Bhd. IOI Properties, via its indirect subsidiaries IOI PFCC Hotel Sdn Bhd and Flora Development Sdn Bhd, has signed a sale and purchase agreement with Tropicana’s unit, Tropicana Residences Sdn Bhd (TRSB), for the proposed acquisition, according to Tropicana’s filing on Wednesday. The acquisition came on the heels of a major asset buy by IOI Properties’ chief executive and major shareholder Lee Yeow Seng last month. The tycoon, via his private firm Shenton 101, emerged on Nov 1 as the sole bidder to redevelop Singapore’s Shenton House for S$538 million (about RM1.87 billion). Built in the 1970s, Shenton House is one of the oldest buildings in Singapore’s Raffles Place central business district. W KL is a 25-storey hotel with 150 rooms. As at Dec 31, 2022, its audited net book value was RM265.135 million. According to Tropicana, the group’s original cost of investment in W KL is RM364.01 million, comprising the purchase consideration of about RM43.45 million for the land, which was completed in year 2010, as well as year-to-date development costs amounting to around RM320.56 million as at Oct 31 this year. Tropicana said the disposal of W KL represents an opportunity for the group to immediately unlock the value of its investment asset, as the disposal consideration translates to a price per key of approximately RM1.8 million. The deal is expected to provide the group an estimated net pro forma gain on disposal of RM7.41 million. “Upon completion of the proposed disposal, Tropicana Group is able to improve its financial performance and realise a gain, and thereby strengthen its cash flow position,” said Tropicana, which is controlled by its founder, group executive vice-chairman and major shareholder Tan Sri Danny Tan Chee Sing. Of the disposal proceeds, RM105 million will be channelled to fully repay W KL’s existing bank borrowings, while another RM164.86 million will be allocated for partial repayment of the group’s existing bank borrowings, Tropicana said. As of Sept 30 this year, Tropicana’s total borrowings stood at RM3.26 billion, of which RM2.162 billion was long-term loans, while the remaining RM1.098 billion was short-term loans. Tropicana said the proposed disposal, expected to be completed by the first quarter of next year, would enhance the group’s net assets in the future, as the disposal proceeds will be used to partially repay its bank borrowings, which will subsequently improve the company’s gearing. Tropicana more than halved its net loss to RM10.34 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM26.27 million a year earlier, on completion of its disposal of two parcels of freehold development land in Kajang and Genting Highlands, as well as a continuous cost rationalisation exercise to reduce overall expenses. Shares in Tropicana settled one sen or 0.82% higher at RM1.23 on Wednesday, giving the group a market capitalisation of RM2.83 billion. Shares in IOI Properties settled two sen or 1.17% lower at RM1.69, valuing the company at RM9.31 billion. by Sulhi Khalid theedgemalaysia.com by Luqman Amin theedgemalaysia.com IOI Properties to buy W Kuala Lumpur hotel from Tropicana for RM270 mil cash
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THURSDAY DECEMBER 7, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 6): MSM Malaysia Holdings Bhd expects a better financial year in the year ending Dec 31, 2024 (FY2024). Group chief executive officer Syed Feizal Syed Mohammad said the sugar refiner is taking steps to reduce its losses, while the industry is anticipated to turn around soon. “Last year was challenging, with all the input costs of what I would like to call a perfect storm. “Of course, we are unable to adjust certain prices. It requires time to adjust. We are making adjustments now,” he told reporters after the launch of MSM’s latest addition to the Gula Perai line-up, called Gula Super. MSM reported a reduced net loss of RM36.06 million for the third quarter ended Sept 30, 2023 (3QFY2023), compared with RM73 million for 3QFY2022, attributable to an enhanced margin resulting from a higher average selling price, reduced freight costs, and improved capacity utilisation. For 3QFY2023, MSM’s revenue surged to RM806.72 million, up from RM668.13 million for the same period last year. On the ceiling price, Syed Feizal said MSM and other sugar producers had been engaging with the government over the issue. The ceiling price was set by the government, and had remained unchanged without subsidies over the last 10 years, he said. Amid high input costs due to increases in raw sugar cost, high freight and natural gas costs, as well as a weakened ringgit, the local sugar industry remained resilient, Syed Feizal noted, adding that together, the industry had subsidised RM500 million for sugar last year. On Gula Super, he said, MSM targets to produce 10,000 tonnes of the new product per month. The production of Gula Super has been rising from the start of its launch at 1,000 tonnes in May to between 5,000 and 6,000 tonnes per month currently. Read the full story Read also: MSM poised for potential bullish breakout, says Rakuten Trade MSM anticipates a more prosperous financial year in 2024 KUALA LUMPUR (Dec 6): Agrochemical businessman Datuk Eddie Ong Choo Meng has emerged as a substantial shareholder in Hektar Real Estate Investment Trust (Hektar REIT), after acquiring a 28.462% stake, or 143.9 million shares, in the company. Ong is no stranger to the investing community, given his interests in various local listed firms. Notably, Ong is also a major shareholder in listed companies such as Hextar Global Bhd, KIP REIT, Hextar Healthcare Bhd (Rubberex Corp (M) Bhd), Hextar Industries Bhd (formerly known as SCH Group Bhd), Hextar Technologies Solutions Bhd (formerly known as Complete Logistic Services Bhd), Hextar Capital Bhd (formerly known as Opcom Holdings Bhd), as well as Classic Scenic Bhd and Perak Transit Bhd. In a bourse filing on Wednesday, Hektar REIT said Ong acquired 42.8 million shares or an 8.465% direct interest in the company. He also deemed interest in the company via Hextar Rubber Sdn Bhd with 101.1 million shares or a 19.997% stake. Both blocks were bought on Monday via direct business transactions. Bloomberg d a t a showed that the transaction cost 89 sen per share, translating into RM128.07 million for an about 29% stake in Hektar REIT. The transaction price is higher than Hektar REIT’s closing price of 63 sen on Wednesday — after it closed up 0.5 sen or 0.8%. At 63 sen, Hektar REIT is valued at RM319 million. The counter is currently trading at a historical price-earnings ratio of 4.71 times. According to Bloomberg data, there were five tranches of off-market transactions on Monday. Four of them were priced at 89 sen per share while the remaining block of 10.56 million shares was transEddie Ong buys into Hektar REIT, says no plan to merge with KIP REIT for now acted at 65 sen apiece. The largest block amounted to 101.1 million shares, changing hands at 89 sen, while the volume of the remaining three transactions at the same price totalled 42.8 million shares. When contacted by The Edge, Ong said he bought into Hektar REIT because of its long-term value. Ong, however, acknowledges that at the moment, there are no synergies to be derived between KIP REIT and Hektar REIT. “There is no plan for us to merge KIP REIT and Hektar REIT. Both of them will operate separately,” he said. Ong owns a 20.875% indirect interest in KIP REIT and a 0.859% indirect stake in the REIT. Its investment portfolio includes AEON Mall Kinta City as well as the KIP Malls in Selangor, Johor, Melaka and Negeri Sembilan. In an exclusive interview with The Edge in October, Hektar REIT executive director and CEO Johari Shukri Jamil said the group was diversifying its portfolio to include the education and industrial sectors as it adapts to changing market dynamics. Hektar REIT is the country’s first listed retail-focused REIT. Its property portfolio includes Subang Parade, Mahkota Parade, Wetex Parade and Kulim Central. Read the full story BY JUSTIN LIM theedgemalaysia.com Bernama THE EDGE FILE PHOTO MSMSUGAR.COM
THURSDAY DECEMBER 7, 2023 7 THEEDGE CEO MORNING BRIEF
thursday december 7, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 6): MyEG Lodging (NC) Sdn Bhd, a subsidiary of e-government service provider MyEG Services Bhd, has signed a 30-year lease agreement with Penang Development Corp (PDC) to develop a foreign workers’ village project worth RM108 million. The lease agreement, valued at RM20.4 million, grants MyEG Lodging the rights to build and operate the workers’ village and related facilities on an 8.39-acre (3.40-hectare) land parcel in Batu Kawan Industrial Park 3, Seberang Perai Selatan, Penang. The project, with an estimated development cost of RM108 million, is set to commence development following the approval for all necessary designs and plans by the relevant authorities. The agreement was signed by MyEG non-independent non-executive director Datuk Mohd Jimmy Wong Abdullah and PDC chief executive officer Datuk Aziz Bakar, witnessed by Penang Chief Minister Chow Kon Yeow. In a statement on Wednesday, MyEG said MyEG Lodging successfully secured in April the workers’ village project tender from PDC, the Penang government’s chief development agency. The primary objective of the project is to provide foreign workers’ accommodation solutions to the private sector, especially for small and medium enterprises (SMEs). The workers’ village will offer medium-density residences capable of housing at least 8,000 foreign workers, and is expected to be completed by the fourth quarter of 2025, according to MyEG. Wong said MyEG is honoured to support the cause, as the group fully understands its significance and impact. “To us, the MyEG-PDC workers’ village is more than a housing project; it is a comprehensive solution addressing the challenges faced by our foreign labour workforce. “By providing a safe, comfortable, and affordable living environment, together with PDC, we are helping to enhance the quality of life for thousands of workers, while also fostering a sense of community and belonging,” he added. Meanwhile, Aziz said working on this project with MyEG Lodging signifies a substantial step in alleviating housing and security concerns of Penangites with a focus on sustainable development. “The establishment of this workers’ village is a strategic move towards attracting more businesses and investors to the Batu Kawan Industrial Park, especially SMEs from labour-intensive industries. “Moreover, this initiative aligns well with the objectives outlined in the Penang Vision 2030, bringing us closer to fulfilling the long-term goal of transforming Penang into a family-focused, green, and smart state that fosters inclusivity and equitable society, and enhances the quality of life,” he added. MyEG inks deal with PDC to develop RM108 mil foreign workers’ village KUALA LUMPUR (Dec 6): Hiap Teck Ventures Bhd will fork out RM53.24 million under its steel manufacturing joint-venture (JV)’s RM195 million rights issue, which is to fund the JV’s capital expenditure, in particular a hot rolling mill. In a bourse filing on Wednesday, Hiap Teck said it will subscribe to 54.6 million new shares in Eastern Steel Sdn Bhd (ESSB) at 97.5 sen apiece under the JV’s rights issue of 200 million shares. Hiap Teck will fund the subscription amount via internally generated funds and/or external borrowings. A share subscription agreement has been inked between Hiap Teck — which owns 27.3% in the ESSB — and the other JV partners — Shanxi Jianlong Industry Co Ltd and Chinaco Investment Pte Ltd, who own 68.8% and 3.9% stakes in the JV respectively — as well as Jianlong Holdings Sdn Bhd (JHSB). JHSB, Shanxi’s sister company by way of sharing Beijing Jianlong Heavy Industry Group Co Ltd as a parent, is to subscribe to Shanxi’s entitlement of 137.6 million shares for RM134.16 million. Meanwhile, Chinaco is to subscribe to 7.8 million shares for RM7.61 million. Hiap Teck to spend RM53.2 mil under steel-making JV’s cash call will maintain their stakes in the JV: Hiap Teck with a 27.3% stake, Shanxi and JHSB with 63.3% and 5.5% respectively (an aggregate of 68.8%), and Chinaco with 3.9%. The RM200 million cash raised from the exercise will be used by ESSB for capital expenditure, including the planned hot rolling mill, as well as working capital requirements. ESSB is a steel product manufacturer with a production capacity of 2.7 million metric tonnes (MT) per annum of steel slabs and billets — raised from 700,000 MT previously, with the addition of a new 1,380 m3 blast furnace in August. “ESSB is in the [process] of constructing a new 1,450 mm hot rolling mill, which will have an annual rolling capacity of 2.58 million MT of hot rolled coil (HRC) upon its targeted completion in September 2024,” it added. It was previously reported that this comes under ESSB’s RM5.5 billion Phase 2 expansion, where RM4 billion has been invested into the new blast furnace, while another RM1.5 billion is to go toward the hot rolling mill. Shares in Hiap Teck ended unchanged at 43.5 sen on Wednesday, giving the group a market capitalisation of RM751.81 million. by Izzul Ikram theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com The Eastern Steel Sdn Bhd branch at Kemaman, Terengganu, as seen on Nov 8, 2023. Patrick Goh/the edge Hiap Teck said the proposed share subscription is expected to be completed by end-December. Post share subscription, the shareholders (From left) Penang Development Corp deputy chief executive officer (operation) Roslan Hassan and CEO Datuk Aziz Bakar, Penang Chief Minister Chow Kon Yeow, as well as MyEG Services Bhd non-independent non-executive director Datuk Mohd Jimmy Wong Abdullah and general manager (regional) Wong Thean Chye.
THURSDAY DECEMBER 7, 2023 9 THEEDGE CEO MORNING BRIEF C M Y CM MY CY CMY K 231120_YTL Group_The Edge Malaysia_ESG Awards 2023_CEO Morning Brief_V2_FA.pdf 1 20/11/2023 4:48 PM
thursday december 7, 2023 10 The E dge C E O m o rning brief home PUTRAJAYA (Dec 6): The government’s initiative for digital identification — dubbed MyDigital ID — is expected to be made available for the general public by July next year, according to Mimos Bhd chief techno-venture Dr Saat Shukri Embong. Saat said MyDigital ID will be rolled out in four phases, starting with Cabinet members, followed by civil servants, government beneficiaries like subsidies receivers, and finally to the general public. “We are rolling out this way because we want to ensure there are use cases available before the general public come onboard,” he told reporters here at a briefing on Wednesday. Saat also said that MyDigital ID can be used for verification to receive targeted subsidies, but stressed that the government has not made a decision on this yet. “Target subsidy distribution is one of the use cases, but that is beyond us; it is up to the government on whether to use it (MyDigital ID) in rationalising subsidies,” he added. In terms of registration, Saat said it can be done through physical verification, whereby Mimos can verify through identification card and thumbprint at various government premises currently. For online registration, Saat said users will be restricted from performing financial-related activities, until they are physically verified. “A user can perform online registration, use the digital ID to make a medical appointment at a government hospital or clinic, and finally make physical presence at the clinic, where the clinic personnel can physically verify them. So, it can be done that way as well,” he explained. MyDigital ID to be made available to public by July 2024, says Mimos KUALA LUMPUR (Dec 6): Malaysia’s tourism sector is anticipated to fully recover by next year, with the number of tourist arrivals seen surpassing pre-Covid-19 levels, driven by better flight connectivity and increased visitors from China and India, said Tourism Malaysia deputy director general (promotion) Datuk Musa Yusof. Speaking at the Bursa Malaysia-HLIB Stratum Focus Series XVI (16th) event titled “Tourism: Welcoming A New Dawn” on Wednesday, Musa cited revenge travel in the post-pandemic era, which reflects a surge in tourist activity as individuals explore multiple destinations for their holidays. “More eco-friendly infrastructure and sustainable options are also increasingly sought after among tourists, who are more often than not, business travellers seeking leisure time, and recently after the pandemic, digital nomads who can ‘work from anywhere’,” he said. Following a remarkable increase to 14.4 million tourist arrivals in the first nine months of 2023, Malaysia has revised its full-year forecast upwards by 18.63% to 19.1 million, up from its initial forecast of 16.1 million, said Musa. “We hope the 2024 [tourist arrivals] figure will be higher than pre-Covid-19 levels,” Musa said without disclosing the forecasts. “We will head towards the third phase of our strategic plan: Strengthen & Boost, which will also be the year where we gear up for the upcoming Visit Malaysia Year 2026, a benchmark that is hoped to bring us even further than our pre-pandemic success”. In 2019, Malaysia recorded 26.1 million international visitors, before dropping by 83.4% to 4.33 million in 2020 — the year when the Covid-19 outbreak first emerged. The following year, in 2021, the number plummeted further to a mere 130,000. With the announcement of Malaysia’s transition from the Covid-19 phase to the endemic phase by the previous government under Datuk Seri Ismail Sabri Yaakob’s administration, tourist arrivals rebounded to 10.1 million in 2022. According to Musa, Tourism Malaysia will continue to foster smart partnerships and collaborations with both local and international industry players to further boost demand for Malaysia’s tourism offerings. He said, focus on targeted and fast conversion markets will be heightened for more effective marketing as well as the development of niche products and services, such as Muslim-friendly tourism, medical tourism, sports and the Malaysia My Second Home (MM2H) programme. Read the full story Read also: Malaysians top list of tourists flocking to Thailand as Chinese miss target Malaysia’s 2024 tourist arrivals expected to surpass preCovid-19 levels — Tourism Malaysia by Syafiqah Salim & Cheryl Tan theedgemalaysia.com Datuk Musa Yusof. Zahid Izzani/TheEdge by Chester Tay theedgemalaysia.com Saat said the government is streamlining more of its services under a single portal to allow easier access by the public, especially with this new digital identification. He emphasised that MyDigital ID is not meant to replace the existing MyKad system, but merely an extension for ease of accessing government services going forward. “I was told that there are more than 1,700 government services currently, and with MyDigital ID, we understand that more services will be made available and [it] is expected to have over 2,000 services. Currently, you will have to remember all the username and password. With MyDigital ID, you will have access to all of them without the need of username and password, because your identity is already verified through our app,” he said. Read the full story Read also: Less than 4% left to achieve 5G network coverage target of 80% — Fahmi
thursday december 7, 2023 11 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 6): CGS-CIMB Securities has maintained “underweight” on the rubber gloves sector and said the diminishing pricing power of Malaysian glovemakers due to regional competition may lead to lower long-term margins. In a note on Dec 5, the research house said though it expects the industry to turn profitable by CY25F, the net profit outlook looks unexciting relative to current valuations. CGS-CIMB has “hold” calls on Supermax Corp Bhd and Kossan Rubber Industries Bhd while keeping its “reduce” ratings on Hartalega Holdings Bhd and Top Glove Corp Bhd. The research house highlighted three key negative observations in the glove industry that may persist over the next 12-18 months: 1) the Malaysian glovemakers are still being undercut by US$3-4 (RM14.02- 18.69) per 1,000 pieces, given the lower cost structure of regional players in China and Thailand, prolonging the challenges in passing on cost escalations, 2) profitability, measured by Ebitda per 1,000 pcs, may settle at a new normal given the eroding pricing power, and 3) elevated glove inventories following pandemic-led stockpiling is limiting strong upside to volume growth in the near term. “This could cap the improvement in industry utilisation rates, in our view,” it said. CGS-CIMB estimates the Big 4 (Top Glove, Kossan, Supermax and Hartalega) to swing from aggregate losses of RM456 million in CY23F to a modest profit of RM21 million in CY24F, growing to a RM568 milllion net profit in CY25F. “We estimate the Ebitda per 1,000 pcs of local glovemakers to recover to 85-95% of their respective pre-pandemic averages by CY25F. “We also expect some variations to the recovery in utilisation rates, led by Hartalega as it has undergone the largest capacity cut. We believe Top Glove and Supermax may still have plenty of excess capacity to shed, hence their utilisation rates could recover more slowly,” it said. Profit outlook for glovemakers unexciting relative to current valuations, says CGS-CIMB PUTRAJAYA (Dec 6): A total of 6.5 million eMadani credit assistance applications have been approved and credited to recipients, involving an allocation of RM650 million thus far, according to Deputy Finance Minister I Datuk Seri Ahmad Maslan. Speaking to reporters while conducting a survey of eMadani credit redemption at a supermarket on Wednesday, Ahmad said that another 1.8 million applications are still in the approval process, which will take one to five days. “A huge number of people have applied in these three days, even though we are open until Feb 20, 2024, and [the credit] can be cashed in until Feb 29 next year. “However, those who feel that they are eligible but have failed in their applications can appeal,” he said, adding that applications on all other e-wallet service provider applications will be rejected after one failed on the first application. He said that those who failed could appeal through several platforms, including sending an email to [email protected], or calling (03) 8882 4565 or (1800) 88 2747. The four e-wallet service providers are ShopeePay, Maybank’s MAE, Touch ‘n Go eWallet, and Petronas’ Setel. Meanwhile, Ahmad Maslan said that Ahmad Maslan: 6.5 mil eMadani applications approved, RM650 mil credited Bernama by Surin Murugiah theedgemalaysia.com one of the reasons for individuals failing to apply, or not being included in the eligibility group, is that they did not submit their tax return forms for assessment year 2022 within the stipulated period. This is because eligibility is identified using the 2022 assessment year tax return if the applicant is not a Rahmah Cash Assistance recipient, he added. “If they make a tax declaration and are still ineligible, there is a possibility of discrepancies between the e-wallet platforms and Inland Revenue Board records, and they can appeal. “For example, individuals who are unable to apply also include university students, because they have received eBeliaRahmah,” he said, adding that issues related to eMadani applications faced by the public will be brought to the post-Cabinet meeting of the Ministry of Finance. Meanwhile, he said that the strict conditions set for the eMadani are part of efforts to help micro, small and medium enterprises. “We want to help the people by developing the local economy, and not big companies, for example, for toll payments and so on,” he said. eMadani credit registration and claims, open on Monday, will benefit 10 million people, involving an allocation of RM1 billion. Sources: CGS-CIMB Research estimates, company reports ROEs may not recover to pre-pandemic levels, even by 2025F -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Hartalega Kossan Top Glove Supermax 2016 2017 2018 2019 2020 2021 2022 2023F 2024F 2025F Shahrill Basri/ The Edge
THURSDAY DECEMBER 7, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 6): Phillip Capital has initiated coverage of Pentamaster Corp Bhd with a “buy” rating at RM4.56, and a target price of RM5.65, based on a target 35 times price-earnings (P/E) multiple on estimated earnings per share for the financial year ending Dec 31, 2024 (FY2024). In a note on Wednesday, the research house said that trading at forward 28 times P/E, it sees opportunities on the back of positive views on the rising electric vehicle adoption trend, semiconductor sector recovery, and growing opportunities in the medical segment. Phillip Capital said Pentamaster had consistently generated positive operating cash flows since FY2019, and had invested in capital expenditure with little borrowings. The research house said the majority of the company’s cash outflow can be attributed to dividend payments, with a yield of less than 1.0%. It said while there is no official dividend policy, Pentamaster had distributed around 10% of its annual profit after tax for the past two years. “We project a similar payout moving forward. Pentamaster has been able to demonstrate a stable cash flow, and generate a positive free cash flow in most years. “Key downside risks include prolonged market recovery and any unforeseen customer order delays,” it said. Phillip Capital starts coverage of Pentamaster, target price at RM5.65 KUALA LUMPUR (Dec 6): RHB Investment Bank Research has upgraded the transportation sector to “overweight”, and said of the five companies under its coverage that had reported results, three came in line, while two fell below estimates. In a sector update on Wednesday, the research house said the sector upgrade is underpinned by positive macroeconomic and sectorial indicators, namely emerging signs of a recovery in China, further pickup in tourism activities, and stronger momentum in trade activities. RHB IB said Westports Holdings Bhd’s core earnings for the third quarter ended Sept 30, 2023 (3QFY2023) were within house expectations, remaining relatively stable quarter-on-quarter (q-o-q), but reflecting a 30% year-on-year (y-o-y) improvement. Meanwhile, it said that Malaysia Airports Holdings Bhd (MAHB) is regaining momentum in both its aeronautical and non-aeronautical segments. It said the stronger y-o-y performance was not a surprise, given the promising growth in both passenger traffic and recovery rates. However, it said that earnings contractKUALA LUMPUR (Dec 6): TA Securities has maintained its “buy” rating on Able Global Bhd, a manufacturer and trader of food products, with an unchanged target price of RM1.55 per share, based on the sum-of-parts valuation method, as it believes the group’s growth momentum is sustainable, riding on normalised input costs and a diverse pool of suppliers. In a note on Wednesday, TA Securities said demand for Able Global’s filled milk products is escalating in the US market, where the company made its maiden exports in July 2023, due to inflationary pressure and lower price point product offerings. The group’s export approval for full cream dairy products to Mexico is still in the pipeline, but it is cautiously optimistic about obtaining the licence early in the second half of calendar year 2024. ed 11% q-o-q, due to the provision for doubtful debt for MYAirline, higher depreciation, and increased user fees, in tandem with the increase in passenger traffic. “Its retail segment revenue also increased 2.6 times y-o-y, attributed to an improved passenger mix, higher retail spending per ticket of RM304 (versus 2QFY2023: RM290), and higher royalties,” the research house said. RHB IB said the confluence of reduced freight rates and subdued demand continued to erode margins of the freight-forwarding business. It said the sluggish quarterly performance was in tandem with the weak trade date printed, as well as softer global economic and trading activities. “For logistics players under RHB IB’s coverage, FM Global Logistics Holdings Bhd’s results for the first quarter ended Sept 30, 2023 were in line, but recorded a 21.6% y-o-y drop, while Tasco Bhd’s earnings for the second quarter ended Sept 30, 2023 were below expectations, both due to softer freight-forwarding business volumes and slower-than-expected warehouse activities. “Nevertheless, we expect Tasco to record a much better performance for the second half ending March 30, 2024, from maiden contributions of new warehouses, which should fetch wider margins compared to its current rented warehouse,” RHB IB said. “Our sector upgrade is justified, based on the positive macroeconomic and sectoral indicators. “RHB Economics expects trade momentum to strengthen beyond the fourth quarter of 2023, supported by the resilience of US and regional economies, a global technology cycle rebound, and early signs of a recovery in China. Note that US/Asean/China constitute about 11%/28%/13% of Malaysia’s total exports,” RHB IB said. RHB IB upgrades transportation sector to ‘overweight’; MAHB and Tasco top picks TA Securities keeps ‘buy’ on Able Global BY SURIN MURUGIAH theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com BY SURIN MURUGIAH theedgemalaysia.com “In the absence of clarity of the timeline for the approval, the company has been actively engaging with local consultants in Mexico, amid the submission of necessary documents to the Mexico’s authority after the initial query,” TA Securities said. Read the full story WWW.PENTAMASTER.COM.MY
THURSDAY DECEMBER 7, 2023 13 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF LB Aluminium’s 2Q profit falls 65% KUALA LUMPUR (Dec 5): LB Aluminium Bhd saw its net profit fell 64.59% to RM4.37 million for the second quarter ended Oct 31, 2023 (2QFY2024), from RM12.35 million a year before, due to lower contribution from the aluminium segment. Earnings per share dropped to 1.01 sen for 2QFY2024, from 2.84 sen previously. Quarterly revenue, however, increased by 7.56% to RM221.67 million, from RM206.09 million previously. Its aluminium segment’s profit before tax declined by 76.6% to RM4.12 million, from RM17.59 million previously, due to a decrease in both revenue and margins. — by Justin Lim Read the full story Sapura Industrial’s profit falls 26% on deferred tax provision KUALA LUMPUR (Dec 6): Sapura Industrial Bhd’s net profit fell 25.68% to RM1.89 million in the third quarter ending Oct 31, 2023 (3QFY2024), compared to RM2.55 million a year ago, mainly due to the provision for deferred tax liabilities. Quarterly revenue rose 9.12% to RM77.08 million from RM70.64 million in the previous year’s corresponding period, in line with improvement in volume due to the delivery of carried-over bookings made during the sales tax exemption period. — by Choy Nyen Yiau Read the full story Comintel proposes 1-for-10 rights issue, private placement to raise RM90 mil KUALA LUMPUR (Dec 6): Comintel Corp Bhd, which completed its regularisation plan last year, has proposed a rights issue exercise followed by a private placement to raise approximately RM90 million for acquisition of construction equipment and working capital purposes. The group is proposing a one-for-10 rights issue of 45.25 million shares at 80 sen apiece to raise RM36.2 million. It is also proposing the private placement of 45.25 million shares, representing 9.09% of the enlarged share base post-rights issue, to raise approximately RM53.85 million, based on an illustrative placement price of RM1.19 per share. — by Adam Aziz Read the full story Heitech Padu secures RM37 mil contract KUALA LUMPUR (Dec 6): Heitech Padu Bhd has secured a contract worth RM37.01 million to provide end-to-end services for the hospital information system (HIS) at Sultan Ismail Hospital in Johor Bahru. In a filing with Bursa Malaysia on Wednesday, the global ICT systems and technology service provider said the 36-month contract will commence on Dec 18. The services provided by the group will encompass the supply, installation, development, configuration, testing and commissioning of HIS hardware, software and systems. — by Choy Nyen Yiau MPI ceases leadframe manufacturing after 49 years KUALA LUMPUR (Dec 6): Malaysian Pacific Industries Bhd (MPI) said it will cease its leadframes manufacturing operations under Dynacraft Industries Sdn Bhd by end-January next year. MPI, part of the Hong Leong Group, said the cessation “is made after a careful business strategy review”. Set up in 1974, Dynacraft Industries is “one of the largest manufacturers of leadframes in the region” with a manufacturing facility in Penang, MPI’s annual report showed. Leadframes, a thin layer of metal which forms semiconductor device assembly, are used in a broad range of electronic products, such as computers, automotive components and telecommunications, the report said. — by Adam Aziz Read also: MVV Industrial Park project in Negeri Sembilan to achieve RM2.8 bil GDV Former BNM forex dept director appointed CSH Alliance chairman ’Embarrassment to the state’, says Johor MB after hours-long blackout hit Causeway checkpoint Malaysia and UAE to complete bilateral trade talks by 1Q2024, says Zafrul KUALA LUMPUR (Dec 6): Talks between Malaysia and the United Arab Emirates (UAE) concerning a comprehensive economic partnership agreement between the two nations will be completed by the first quarter of 2024 (1Q2024), said the Ministry of Investment, Trade and Industry (Miti). “We hope to complete our trade talks with the UAE. Our comprehensive partnership agreement will, god willing, be signed in February or 1Q2024,” said Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz during a press conference at his ministry’s report card briefing on Wednesday. — by Izzul Ikram Read the full story Boustead Heavy Industries announces RM417 mil debt settlement plan KUALA LUMPUR (Dec 6): Boustead Heavy Industries Corp Bhd (BHIC) has proposed to undertake a partial debt settlement with three banks totalling RM183.26 million and the full settlement of its RM234 million debt with Boustead Holdings Bhd (BHB). Payment will be made by the cut-off date of Dec 31 that was agreed to by the parties, BHIC told Bursa Malaysia on Wednesday. It said the partial debt settlement with the banks — Affin Bank Bhd, MBSB Bank Bhd and AmBank Islamic Bhd — will be made through a combination of cash and the issuance of new ordinary shares and “Class A” redeemable convertible preference shares, both conventional (RCPS A) and Islamic (RCPS-i A), at a price of 57 sen per share. Meanwhile, the RM234 million debt with BHB will be settled through the issuance of new BHIC shares, “Class B” redeemable convertible preference shares (RCPS B) and “Class C” redeemable preference shares (RPS C), also at 57 sen per share. — by Sulhi Khalid Read the full story
THURSDAY DECEMBER 7, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 6): A Dewan Negara member on Wednesday urged that Malaysia explore a new way to increase national income via carbon credit sales as a new potential source. Senator Jaziri Alkaf Abdillah Suffian said Malaysia might stand to reap billions of ringgit from the carbon credit potential. “As mentioned by the Malaysian Timber Council, this country has 18.27 million hectares of forest area. The value of carbon credits in 2023 is estimated at between US$40 and US$80 per tonne (RM186.90 to RM373.80). “By taking a conservative value of US$20, the revenue from the sales of these carbon credits can increase national income by RM432.8 billion every year. “Within two years, we can pay off the national debt [from such revenue],” he said while debating the Supply Bill 2024 for the second reading in the Dewan Negara on Wednesday. He also urged the government to work with other tropical countries such as Laos, Bolivia, Cameroon, Mexico, Papua New Guinea and Venezuela. “We should be considered the ‘lungs’ of the world, where more than half of our country’s territory is rainforest, with 27% of it being permanent forest reserves. “I hope and believe this is an opportunity for the country to find a more effective alternative source of income,” he said. Govt urged to explore carbon credit sales as new income source PUTRAJAYA (Dec 6): Umno does not intend to re-establish political cooperation with PAS. In fact, Umno president Datuk Seri Dr Ahmad Zahid Hamidi said the party has not heard rumours or received any proposal regarding this. “We hope they would never try to dupe Umno again... as for now, Allah has not opened our hearts to re-establish a political cooperation with them. “So, they should just stop daydreamKUANTAN (Dec 6): The Pahang government, through the State Economic Planning Division, is in the process of acquiring the site for the Pulau Tioman Airport upgrading project, which involves extending the runway from 850 metres to 1.3 kilometres. State Public Works, Transport, Health and Local Government Committee chairman Datuk Mohammad Fakhruddin Mohd Ariff told the state assembly that the federal government had approved an allocation of RM47 million for the project. He was responding to a question from Datuk Mohd Johari Hussain (BN-Tioman) on the status of the Tioman Island airport project. To a supplementary question from Johari on whether the Pulai Tioman Aiport was ready to receive private planes and direct international flights, he said a study on the matter was being conducted by consultants. Meanwhile, Pahang Unity, Tourism and Culture Committee chairman Leong Yu Man said the state government is gathering information to determine the exact location in Kuantan mentioned in the anime Jujutsu Kaisen series, as went viral on social media. “We are making efforts to contact the Japanese side and get approval from the creator of the anime to determine the exact location, so that there will be a place for anime fans to ‘check in’ and become a new attraction for anime fans all over the world,” she said. She said this in response to a question from Rosli Abdul Jabar (PN-Tanjung Lumpur) regarding the state government’s plans to upgrade Pantai Anak Air and to turn the Pantai Tanjung Lumpur Beach into a tourist destination. ing,” he said in response to PAS deputy president Datuk Seri Tuan Ibrahim Tuan Man’s remarks that PAS is open to working with Umno again despite the bitter feud between both parties. Tuan Ibrahim also reportedly said that any cooperation with Umno must be through the Perikatan Nasional platform, which also includes Bersatu. Speaking to reporters after witnessing the presentation of donations to the Humanitarian Trust Fund for the People of Palestine (AAKRP) here on Wednesday, Zahid also called on Umno supreme council member Isham Jalil to attend and share his views on the results of the Kemaman parliamentary by-election at Umno’s supreme council meeting later. He said Isham has been absent from Umno’s supreme council meeting three times. “Hopefully, he will have the courage to come tonight,” he said. Isham was reported to have said that Umno’s defeat in the Kemaman by-election was due to some Umno members being lackeys of DAP. In the by-election last Saturday, the PASled Terengganu government maintained its status quo in Kemaman with Datuk Seri Dr Ahmad Samsuri winning the parliamentary seat with a 37,220-vote majority. He garnered 64,998 votes, defeating Barisan Nasional (BN) candidate Gen (Rtd) Tan Sri Raja Mohamed Affandi Raja Mohamed Noor, who obtained 27,778 votes. The by-election was held following the Terengganu Election Court’s decision on Sept 26 to nullify PAS candidate Che Alias Hamid’s victory in the 15th General Election. Zahid shuts down talk of UmnoPAS alliance Bernama Bernama Bernama Pahang govt acquiring site for Pulau Tioman airport upgrading project WIKIPEDIA.ORG
THURSDAY DECEMBER 7, 2023 15 THEEDGE CEO MORNING BRIEF HOME SHAH ALAM (Dec 6): The High Court here on Wednesday granted a permanent injunction sought by Berjaya Land Bhd (BLand) and Berjaya Group founder Tan Sri Vincent Tan against Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, which prohibits the PAS politician from repeating his comments with regard to the Selangor Maritime Gateway project until the disposal of the defamation suit against him. The order was granted by Judicial Commissioner Choong Yeow Choy, after hearing submissions from Chuar Kia Lin and Lew Wei Shing, who appeared for the tycoon and BLand. Mohd Faizi Che Abu and Mohd Yusfarizal Yussoff represented Sanusi. Chuar confirmed the outcome of the proceedings when contacted by The Edge. The ex-parte injunction was initially granted on Aug 17, when the businessman and BLand had filed the suit against Sanusi for his comments. The inter-partes injunction hearing was supposed to be heard earlier, but this was deferred, and the decision was made on Wednesday. Chuar added that Choong fixed Dec 21 for case management by e-review to comply with pre-trial directions. Tan and BLand filed the defamation suit against Sanusi on Aug 8, where the company and businessman are seeking general damages, compensatory damages, aggravated damages and exemplary damages. They also sought an injunction to refrain Sanusi or his agents from making similar remarks in the future until the disposal of the suit. They claimed that Sanusi’s comments had “pervaded and permeated into Tan’s family circle, further aggravating the mental trauma suffered by him and his family”. They also said that Sanusi’s comments are vindictive and malicious. Tan, through his lawyers, claimed that Sanusi’s alleged defamatory comments imply that Tan is a corrupt person, a corrupt businessman, and a crony to Selangor Menteri Besar Datuk Seri Amirudin Shari. Read the full story Court prohibits Sanusi from repeating comments pending defamation suit by Vincent Tan KUALA LUMPUR (Dec 6): The Malaysian Anti-Corruption Commission (MACC)’s investigations on two lawyers and their firms over alleged bribery and money laundering in the Malaysian government’s settlements with Goldman Sachs and AmBank over 1Malaysia Development Bhd (1MDB) is still ongoing. Deputy public prosecutor (DPP) Mahadi Abdul Jumaat said this in court on Wednesday during a brief mention regarding the graft busters’ withdrawal of its legal action compelling lawyers Rosli Dahlan, Chetan Jethwani and their respective firms to produce documents to assist in investigations. “As stated in the letter to court on Nov 29, where we informed the court we do not intend to continue with this application. We are present today to officially inform the court of this, and for the application to be struck off. “Although the application is withdrawn, the investigations are still ongoing. The investigations are still ongoing but at this stage we don’t require the documents from the respondents,” Mahadi said during proceedings before two separate High Court judges Muniandy Kannyappan and Datuk Muhammad Jamil Hussin. Mahadi also added that the prosecution does not have to reveal at what stage the investigation is at the moment. Both High Courts stuck out the anti-graft body’s application on Wednesday. During proceedings before Muhammad Jamil who presided over Chetan and his firm Messrs Chethan Jethwani, the lawyer wanted it on record that the withdrawal means that MACC is not taking any privileged documents from his firm, which represented Goldman Sachs in the August 2021 agreement. Subsequently, the investment bank also withdrew its application to intervene in the matter. Lawyer Krishna Dallumah said that the US-based bank still asserts its rights to the privileged documents. Teh See Khoon appeared for Chetan and his firm on Monday. Meanwhile, Shaarvin Raaj Selva Kumar also appeared for Goldman. During proceedings before Muniandy who presided over Rosli and Rosli Dahlan Saravana Partnership’s (RDS) case, the High Court judge struck out the application and ordered for the cause papers including affidavits to not be accessible by third parties. The court also struck out the legal action against Rosli. RDS who was represented by M Puravalen had asked for one of MACC’s affidavits in support of the application to be struck out as there were averments made against the 17-partner firm which could be damaging. Rosli had earlier applied for the application against him to be struck out, saying that it was wrong to single him out when the documents sought were in the firm’s possession. Harvinderjit Singh, appearing for Rosli, argued that the legal action against his client ought to be struck out as there was no reason for him to be named in the first place. In a statement, Rosli again repeated that the application was done to “smear his reputation”. “From the beginning of this episode, I have stated that the MACC’s actions against my firm and I are scandalous, frivolous, vexatious, libelous and fundamentally flawed. It is obvious that the MACC has decided to discontinue a proceeding that they had initiated unwittingly to their own detriment and to the prejudice of the country. “All these shenanigans against my firm and I must stop. There is still much to be done to recover the losses from the 1MDB scandal,” he said. Read also: Rosli Dahlan: MACC had to withdraw vexatious and fundamentally flawed application Despite withdrawal of application for 1MDB docs, MACC investigations against lawyers, firms continue BY TARANI PALANI theedgemalaysia.com BY HAFIZ YATIM theedgemalaysia.com THE EDGE FILE PHOTO
THURSDAY DECEMBER 7, 2023 16 THEEDGE CEO MORNING BRIEF WORLD LONDON (Dec 6): Former British prime minister Boris Johnson said on Wednesday he was deeply sorry for the loss of life during the Covid-19 pandemic and accepted he had made mistakes, but struggled to say specifically what he could have done differently. Johnson said he took personal responsibility for all decisions that were made and he understood the public’s anger after the inquiry heard testimony of government incompetence, backstabbing and misogyny as it battled the biggest health crisis in decades. The hearing was disrupted by protesters, who were warned, and in some cases ordered to leave, by the inquiry’s chairwoman. “Can I say that I understand the feelings of the victims and their families, and I am deeply sorry for the pain and the loss and the suffering of those victims and their families,” Johnson said. “Were there things we could have done differently? Unquestionably. But I would struggle to itemise them before you now in a hierarchy.” Johnson, prime minister for three years between 2019 and 2022, resigned in disgrace after a series of scandals including reports that he, and other officials, had been present at alcohol-fuelled gatherings in Downing Street during 2020 and 2021 when most people in Britain were forced to stay at home. The inquiry has already heard damaging testimony about Johnson’s handling of the crisis, including his reluctance to lock down, and how he was confused by the science. Johnson was said to have asked at one point if blowing a hair-dryer up his nose could kill the virus and suggested he should be injected with Covid on TV to calm public fears. Johnson faces two days of questioning in what are likely to be the most emotionally charged sessions of the official investigation so far into why Britain ended up with one of the world’s highest death tolls during the pandemic. Covid-19 killed more than 230,000 people in Britain and infected many millions more. ‘Let people die’ Johnson arrived at the inquiry in the dark, more than three hours before the hearing began, avoiding the families of some of those who died from Covid-19, and who had wanted to confront Johnson over claims that he told colleagues he would Former PM Boris Johnson apologises for pain and suffering during pandemic DUBAI (Dec 5): US special climate envoy John Kerry launched on Tuesday an international engagement plan to boost nuclear fusion, saying the emissions-free technology could become a vital tool in the fight against climate change. Kerry said the plan involved 35 nations and would focus on research and development, supply chain issues, and regulation and safety. “There is potential in fusion to revolutionise our world,” Kerry told the COP28 climate summit in Dubai. Fusion, which powers the sun and other stars, can be replicated on Earth with heat and pressure using lasers or magnets to smash two light atoms into a denser one, releasing large amounts of energy. The nascent technology could have an important advantage over today’s nuclear fission plants by producing huge amounts of unlimited power without long-lasting radioactive waste. But there are big hurdles to fusion’s producing commercial electricity. For one, scientists have so far only achieved scattered instances where fusion experiments US envoy Kerry launches international nuclear fusion plan at COP28 BY VALERIE VOLCOVICI Reuters BY ANDREW MACASKILL & MUVIJA M Reuters produce more energy than is required to make them happen. There are also regulatory, construction and siting hurdles in creating new fleets of power plants to replace parts of existing energy systems. Britain and the United States on Nov 8, signed a cooperation agreement on fusion. Other countries pursuing fusion include Australia, China, Germany and Japan. In August, scientists using laser beams at a US national lab in California repeated a fusion breakthrough called ignition, where for an instant, the amount of energy coming from the fusion reaction surpassed that concentrated on the target. Scientists estimated, however, that the net energy output of that experiment was only about 0.5% of the energy that went into firing up the lasers. Of the two main types of fusion, one uses lasers to concentrate energy on a gold pellet containing hydrogen. The other uses powerful magnets to trap plasma, or gaseous hydrogen heated to about 100 million degrees Fahrenheit (55 million degrees Celsius). Read also: US Navy patrol plane flies over sensitive Taiwan Strait prefer to see people die in large numbers than order a second lockdown. Aamer Anwar, the solicitor representing Scottish bereaved Covid families, said Johnson oversaw “a deadly culture of impunity, incompetence” and treating people like “toxic waste”. Although Johnson has given evidence to parliament before about how he managed the pandemic, he is expected to provide the most detailed public account about his decision making in 12 hours of questioning over two days. The inquiry has seen evidence from the government’s former chief scientific adviser, Patrick Vallance, who wrote in his diary in Oct 2020 that Johnson wanted to let the virus spread rather than order another lockdown. Other senior advisers including Dominic Cummings and Eddie Lister claim Johnson also said “let the bodies pile high”. Johnson has denied making those comments. Testimonies in recent weeks have described how Johnson struggled to make decisions at key moments in the crisis, including when to impose curbs on the public’s movements. In private messages seen by the inquiry, Simon Case, Britain’s most senior civil servant, claimed that his boss changed strategic direction every day and was unable to lead. John Kerry REUTERS
THURSDAY DECEMBER 7, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Dec 6): Moody’s on Wednesday downgraded its outlook on Hong Kong to negative from stable, a day after cutting China’s credit outlook citing costs to bail out local governments and state firms or to control its property crisis. The downgrade in Hong Kong’s outlook reflects an assessment of tight political, institutional, economic and financial links between Hong Kong and China, Moody’s said. Hong Kong dismissed the decision on those grounds. “We disagree with its decision to change Hong Kong’s credit outlook to “negative,” it said in a statement, adding the ties with China were “a source of strength for long-term development.” The ratings agency affirmed Hong Kong’s Aa3 ratings, reflecting credit strengths such as a wealthy and competitive economy, fiscal and external buffers and a track record of effective monetary and fiscal policy. Following imposition of a National Security Law in 2020 and changes to Hong Kong’s electoral system, Moody’s said it “expects further erosion of the (city’s) autonomy of political, institutional and economic decisions to continue incrementally”. It said a weakening trend in mainland China would affect Hong Kong’s economy, while “weaker growth in Hong Kong could erode the government’s fiscal buffers.” The ratings agency separately also lowered the outlook on Macau to negative from stable. Last month, Hong Kong’s government revised down the full-year economic growth forecast to 3.2% from an earlier estimate of a 4.0% to 5.0% range. Moody’s changes Hong Kong’s outlook to negative from stable China seeks to contain fallout from Moody’s bearish bond outlook Bloomberg BY GURSIMRAN KAUR Reuters Read also: PBOC steps up yuan support via fixing after Moody’s outlook cut The multi-pronged defense of China’s debt status and financial system underscored how critical it is for Beijing to reassure investors and convince them the nation’s bond and asset markets are worth returning to. A widening yield differential with the US as the People’s Bank of China cut policy rates and the Federal Reserve raised them has also weighed on sentiment: Foreign investors have been selling yuan-denominated bonds at a record pace to buy notes with higher yields elsewhere. The Moody’s announcement, meanwhile, put a spotlight on China’s debt issues. While the agency retained a longterm rating of A1 on the nation’s sovereign bonds, it cited the usage of fiscal stimulus to support debt-laden local governments and the spiraling property downturn as risks. The pushback from China generally followed a theme: Moody’s just doesn’t know this economy. “The rating agency’s understanding of how the Chinese economy works and how the Chinese government functions is not deep enough and does not reflect the reality,” Feng Qiaobin, a deputy director of macroeconomic research at a department under the State Council, was quoted as saying in one state-backed newspaper. She told the publication that the cut was based on outdated information. State broadcaster China Central Television echoed that criticism in a report published on Wednesday, saying the change was based on “misjudgments” over the nation’s growth potential and government debt issues. Citing experts, the report said Moody’s and other global ratings agencies have historically been overly harsh toward emerging markets. (Dec 6): China sought to nip any hit to investor sentiment in the bud after a bearish credit outlook on debt threatened to exacerbate concerns over the financial health of the world’s second-largest economy. One day after Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, the central bank dialed up its support for the yuan a notch and state media published a handful of articles citing experts who denounced Moody’s understanding of China’s economy. The finance ministry had earlier insisted the nation’s growth will be resilient. The multi-pronged defense of China’s debt status and financial system underscored how critical it is for Beijing to reassure investors and convince them the nation’s bond and asset markets are worth returning to. Foreigners remain extremely pessimistic about the ability for policymakers to turn around a years-long property slump and prevent the economy from stagnating, making the Moody’s cut yet another thorn in the government’s side. “If they have been quite ambivalent to the actions by Moody’s yesterday, I think investors might start questioning if fiscal sustainability is top of mind for authorities,” said Louise Loo, lead economist at Oxford Economics Ltd. She said the fact that China was “quite indignant” about the cut “suggests to us that issues that were raised by Moody’s were quite top of mind for policymakers.” “I think investors want to see that,” Loo added. China’s stocks and the yuan have both underperformed against peers in the region as the economy’s performance has disappointed. Confidence among businesses and households remains weak and various efforts to bolster the property sector haven’t really taken root. Foreign investment has plummeted. BLOOMBERG
THURSDAY DECEMBER 7, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Dec 6): Sanjay Shah, a hedge-fund trader accused of defrauding the Danish state of US$1.3 billion (RM6.07 billion) in the Cum-Ex trading scam, will be handed over to Denmark to face criminal charges just over a year after he was arrested in Dubai. “Shah was extradited to Denmark’s security mission, according to legal procedures,” state-run WAM news agency reported on Wednesday. The move was “based upon a decision by the Court of Cassation in Dubai, and the resolution by the Minister of Justice, who approved the extradition.” Shah’s Danish defence lawyers said in a statement they’ve been informed by local sources in Dubai that Shah is expected to arrive in Denmark later on Wednesday. “The extradition process has been slow, opaque and haphazard,” the lawyers, Kaare Pihlmann and Mikael Skjodt, said. “We are relieved that the uncertainty is now over and that Sanjay Shah is finally on his way to Denmark.” Danish prosecutors allege Shah oversaw the Cum-Ex trading scam involving a global network of bankers, lawyers and agents who earned vast sums of money from Denmark’s tax authority by using a loophole on diviHedge fund trader Shah extradited to Denmark a year after arrest (Dec 6): Treasury Secretary Janet Yellen said US lawmakers hold Ukraine’s fate in their hands as they block $61 billion in fresh funding requested by the Biden administration for the embattled East European country. “This is a dire situation and we can hold ourselves responsible for Ukraine’s defeat if we don’t manage to get this funding to Ukraine,” Yellen told reporters as she traveled to Mexico City Tuesday. The Treasury chief said Kyiv, as it holds off Russian forces, is channeling all its tax revenue into its military defense. But keeping its schools and hospitals open and other services operating depends crucially on US funding, she said. The White House has said current US funding will run out by the end of the year. Republicans have insisted they will only agree to the new aid package if Democrats and the White House make major concessions on immigration policy to curb a surge in migrant crossings at the US border with Mexico. Ukrainian President Volodymyr Zelenskiy on Tuesday canceled plans to address the US Senate via videoconference as negotiations stalled. The US has already delivered tens of billions in military and non-military assistance to Ukraine since the Russian invasion in February 2022. “It’s essential to our allies who are providing, quite frankly, overall more generous funding than we are,” Yellen said. “We’re doing a lot, they’re doing even more than we’re doing and Ukraine is just running out of money.” ‘Eating their words’ The Treasury chief was on her way to Mexico to discuss trade ties and increased cooperation with authorities there aimed at fighting the illicit supply of fentanyl into the US. In comments on the US economic outlook, Yellen took at swipe at economists who predicted only a recession would tame inflation and criticized her for continually saying she saw a path to a so-called soft landing. “Economists who’ve said it’s going to require very high unemployment to get this done are eating their words,” she said. Yellen appeals to Congress as Republicans block fresh aid to Ukraine BY CHRISTOPHER CONDON Bloomberg BY ADVEITH NAIR & SANNE WASS Bloomberg Read also: El-Erian says Fed risks losing control of messaging on US rates ‘No bears left’ is worrying refrain coming from Wall Street “It doesn’t seem at all like it’s requiring higher unemployment.” Former Treasury Secretary Lawrence Summers was the most prominent among many economists who dismissed the possibility the US could escape high inflation without a serious uptick in joblessness. In July 2022 he said unemployment would have to rise beyond 5% for inflation to reach the Federal Reserve’s 2% target. The Fed’s preferred gauge of price pressures, the PCE price index, fell to 3% in the 12 months through October. Unemployment, meanwhile, has ticked up in recent months, driven in part by would-be workers coming off the sidelines to seek jobs, but remained below 4%. dend payouts to reap duplicate tax refunds. Shah’s trial in Denmark has already been delayed three times because he hadn’t been extradited on time. While the case is now scheduled to begin in January, it’s likely to be further postponed as his lawyers need three to six months to prepare, Pihlmann told Bloomberg by phone. Shah, who was arrested in 2022, has consistently maintained his innocence. Denmark and the United Arab Emirates (UAE) signed an extradition deal in March last year, with Shah’s handover being one of the main purposes. Read the full story “This is a dire situation and we can hold ourselves responsible for Ukraine’s defeat if we don’t manage to get this funding to Ukraine,” Yellen told reporters. REUTERS BLOOMBERG
THURSDAY DECEMBER 7, 2023 19 THEEDGE CEO MORNING BRIEF WORLD (Dec 6): Traders are ramping up bets on the extent of monetary easing from the European Central Bank (ECB) in 2024 as policymakers signal they’ve probably tightened enough to bring inflation back to target. Markets fully priced in six quarter-point rate cuts by the ECB in 2024 for the first time, a move that would take the key rate down 150 basis points (bps) to 2.5%. There’s also an almost 90% chance of the easing cycle starting in the first quarter of next year, a scenario that was barely contemplated just three weeks ago. While policymakers are still warning of the threat posed by inflation, they’ve also increasingly acknowledged that further hikes above 4% will likely not be needed. Isabel Schnabel, regarded as one of the governing council’s most hawkish members, said in a recent interview with Reuters that the decline in inflation has been “remarkable” and “encouraging”. “The European economy has been steadily deteriorating over the past 12 months as financial conditions have tightened,” said Gareth Isaac, head of multi sector portfolio management at Invesco. He expects labour markets soften next year, “providing the ECB with the cover to begin cutting rates sharply as inflation falls back to target”. ECB Governing Council member Martins Kazaks, cited by Econostream Media on Wednesday, said while there’s no need to cut rate cuts in the first half of 2024, the policy decision might change if the “balance of risks for price stability shifts”. Last week Francois Villeroy de Galhau — considered a centrist — said “barring any shock, rate hikes are now over,” and raised the prospect of cuts next year. The slew of ECB comments acknowledging the progress in the fight against inflation comes days after data showed euro-area consumer prices grew less than expected in November, by 2.4% year-on-year from 5.3% in August. That’s closer to the ECB’s 2% target than at any point since mid-2021. At the same, economic data shows further signs of weakness. German factory orders unexpectedly fell in October, highlighting how manufacturing in Europe’s largest economy remains stuck in a rut. If traders are right, the ECB will be the first among major central banks to cut rates next year, and will deliver the most aggressive easing cycle. The US Federal Reserve is expected to deliver its first move in May and lower rates by 125bps. In the UK, markets are currently pricing three Bank of England quarter-point cuts starting in June, and a 40% chance of a fourth move. A month ago, just two cuts were priced. Rates markets in Australia have switched from betting on another hike by mid-2024 to pricing in a better than 75% chance for a cut by then. And even New Zealand’s central bank — which last week said it may need to hike rates next year — is now seen as a strong chance to reduce its benchmark by May. The view that the ECB and other major central banks will have to ease monetary conditions to support their economies next year has boosted bonds. The yield on 10-year German bonds has dropped about 80bps to 2.23% over the past two months, the lowest level since May. Read also: Banks mask lending to polluters with PR greenwash, ECB blog says Traders see ECB cutting rates by 150bps through 2024 BRUSSELS/STOCKHOLM/LONDON (Dec 6): European Union ambitions to take a lead in landmark rules for artificial intelligence hang in the balance as member states and lawmakers meet on Wednesday to try to hammer out a deal on biometric surveillance and how to regulate systems like ChatGPT. If agreed, the EU’s first-of-a-kind AI Act, which was proposed by the European Commission two years ago, could serve as the benchmark for countries seeking an alternative to the US’ light-touch approach and China’s interim rules. Talks between EU members and lawmakers will start at 1400 GMT and are expected to run into the early hours of Thursday, with the most likely outcome a provisional deal on principles but not crucial details, five people directly involved said. A final deal would then need to be agreed before legislation could be put in place, which could pave the way towards it becoming law before European parliamentary elections in June. But without a deal, the AI Act is likely to be shelved due to a lack of time, resulting in the 27-member bloc losing its first-mover advantage in regulating the technology. Alexandra van Huffelen, Dutch minister for digitalisation, told Reuters it was critical the EU finds a compromise, particularly on generative AI, by the end of the year. “The world is watching us: citizens, stakeholders, NGOs and the private sector want us to agree on a meaningful piece of legislation regarding AI, including GPAI,” she said referring to general purpose AI systems, which have a wide range of uses. Disputed landmark AI rules face crunch EU talks Demands The proposed AI rules face conflicting EU demands. The two biggest are over the use of AI in biometric surveillance and foundation models, the generative AI such as Microsoft backed OpenAI which trains on large sets of data to perform various tasks. EU lawmakers want to ban the use of AI in biometric surveillance, while governments want an exception for national security, defence and military purposes. A late proposal by France, Germany and Italy to let makers of generative AI models self-regulate added more uncertainty. EU ambassadors and lawmakers held separate preparatory meetings last week, but differences remain which could make it difficult to clinch a deal, said the people involved in the talks, who declined to be named because they are confidential. An official from one major EU country said whatever the meeting’s outcome, there will still be a lot more work to do. BY FOO YUN CHEE, SUPANTHA MUKHERJEE & MARTIN COULTER Reuters BY ALICE GLEDHILL Bloomberg Markets fully priced in six quarter-point rate cuts by the European Central Bank in 2024 for the first time, a move that would take the key rate down 150 basis points to 2.5%. BLOOMBERG
THURSDAY DECEMBER 7, 2023 20 THEEDGE CEO MORNING BRIEF WORLD SAN FRANCISCO (Dec 6): Alphabet on Wednesday introduced its most advanced artificial intelligence model, a technology capable of crunching different forms of information such as video, audio and text. Called Gemini, the Google owner’s highly anticipated AI model is capable of more sophisticated reasoning and understanding information with a greater degree of nuance than Google’s prior technology, the company said. “This new era of models represents one of the biggest science and engineering efforts we’ve undertaken as a company,” Alphabet CEO Sundar Pichai wrote in a blog post. Since the launch of OpenAI’s ChatGPT roughly a year ago, Google has been racing to produce AI software that rivals what the Microsoft-backed company has introduced. Google added a portion of the new Gemini model technology to its AI assistant Bard on Wednesday, and said it planned to release its most advanced version of Gemini through Bard early next year. Alphabet said it is making three versions of Gemini, each of which is designed to use a different amount of processing power. The most powerful version is designed to run in data centers, and the smallest will run efficiently on mobile devices, the company said. Gemini is the largest AI model that the company’s Google DeepMind AI unit has helped make, but it is “significantly” cheaper to serve to users than the company’s prior, larger models, DeepMind vice president (product) Eli Collins told reporters. “So it’s not just more capable, it’s also far more efficient,” Collins said. The latest model still requires a substantial amount of computing power to train, but Google is improving on its process, he added. Alphabet also announced a new generation of its custom-built AI chips, or tensor processing units (TPUs). The Cloud TPU v5p is designed to train large AI models, and is stitched together in pods of 8,960 chips. The new version of its customer processors can train large language models nearly three times as fast as prior generations. The new chips are available for developers in “preview” as of Wednesday, the company said. Read also: China Fund beating 98% of peers spurns AI trade on risks Alphabet unveils long-awaited Gemini AI model (Dec 6): Banks using generative artificial intelligence (AI) tools could boost their earnings by as much as US$340 billion (RM1.59 trillion) annually through increased productivity, according to consultants hoping to help the industry adapt in this fast-moving area. This would amount to a 9% to 15% increase in operating profits, according to a McKinsey Global Institute report published on Tuesday. Corporate and retail banks have the most to gain, the authors claimed. Generative AI was popularised last year when OpenAI’s ChatGPT tool launched, offering users sentences, summaries or even poetry based on simple prompts. The technology is trained on vast quantities of existing material that is used to generate its responses. Tools like this could eventually take over repetitive tasks from most human workers, according to McKinsey’s research on 63 use cases across industries. While the initial efficiencies are set to be within companies — and the time frame for adoption is unclear — the finance sector can expect the AI shift in the future “to be a lot more on the customer-facing side”, McKinsey senior partner Gokhan Sari said in an interview. Sales and marketing, software engineering, and call centre roles are among those most likely to be affected, said senior McKinsey partner Jared Moon. As many as 70% of business activities will have automated parts, which will leave only “a very small proportion” of jobs untouched, Moon added. “They’re taking the productivity gains to implement code faster, write better content for clients, freeing up time to spend with customers,” he said. While he’s not yet seen companies using AI to “materially reduce the workforce”, over time “the jury is still out” on job losses. Wall Street has already dived into AI as a way to overhaul its working practices and potentially cut costs. Goldman Sachs Group Inc is using an AI-based tool to automate the labour-intensive elements of coding, The Wall Street Journal has reported. Citigroup Inc has used generative AI to analyse more than 1,000 pages of new capital rules. Derivatives trading, fraud detection and even performance reviews are among banks’ other experiments. So far, the speed of technological change since ChatGPT launched has left firms with the challenge of finding skills in emerging areas, such as prompt engineering and model tuning. According to Moon, companies are training their existing data science teams to specialise in generative AI. “This creates a catalyst for more firms to invest in AI, and there’s even more value in AI. So banks will need more AI talent,” Moon said. McKinsey sees AI adding up to US$340 bil to Wall St profit BY AISHA S GANI Bloomberg BY MAX A CHERNEY & STEPHEN NELLIS Reuters Sales and marketing, software engineering, and call centre roles are among those most likely to be affected, said senior McKinsey partner Jared Moon. As many as 70% of business activities will have automated parts, which will leave only ‘a very small proportion’ of jobs untouched, Moon added. BLOOMBERG
thursday december 7, 2023 21 The E dge C E O m o rning brief world (Dec 6): Bitcoin traded close to US$44,000 (RM204,480) after notching its longest winning streak since May, a rally driven in part by expectations of looser monetary policy. The largest digital asset climbed for six days through Tuesday, advancing roughly 16% to as high as US$44,491 before giving up some gains. Its 2023 rebound from last year’s crypto rout now stands at 163%. Bitcoin is up almost 80% since mid-September, a rally that saw it take out the US$30,000 and US$40,000 levels in quick succession. Along with wagers that the Federal Reserve may start cutting interest rates next year, its rise has also been fueled by speculation that the US may be close to allowing its first spot bitcoin exchange-traded funds. BlackRock Inc filed with the Securities and Exchange Commission in June to launch such a product, suggesting crypto could soon gain wider appeal as an asset class. “Surely the ETF story is well and truly priced?” said Tony Sycamore, a market analyst at IG Australia Pty. The recent high volatility and “jet-fuelled” move up in bitcoin is instead a reminder that crypto is “more responsive to a Fed pivot and policy than other asset classes,” he said. For now, bitcoin momentum is overshadowing any concerns that the surge is at risk of becoming too stretched. Smaller virtual currencies such as Avalanche and meme-crowd Bitcoin trades near US$44,000 after longest win streak since May (Dec 6): Tax raised by governments in OECD countries as a proportion of GDP fell in 2022 for only the third time since the global financial crisis, the Paris-based organisation said on Wednesday. In its annual revenue statistics report the Organisation for Economic Cooperation and Development showed that the average tax to Gross Domestic Product (GDP) ratio across OECD countries fell by 0.15 percentage points last year to 34.0%. Since 2008, the only other declines were in recorded in 2017 and 2019, at 0.6 and 0.1 percentage points respectively. Revenue from excise taxes fell as a share of GDP in 2022 in 34 of the 36 countries for which preliminary data is available, the report said. In some European countries, these declines were due to sharp increases in energy prices, which led to lower demand and in many a reduction in energy taxes, the OECD said. Oil prices were volatile in 2022, boosted as the war in Ukraine tightened supplies and then sliding on weaker demand from top importer China and worries of an economic contraction. Revenue from value-added tax (VAT) also decreased as a share of GDP in 19 countries, partly as a result of government policies to cushion consumers against high food and energy prices. The fall in revenue from excise taxes was partly offset by growth in corporate income taxes, which rose as a share of GDP in more than three-quarters of OECD countries as profits increased, especially in the energy and agricultural sectors, the study found. France had the highest tax-to-GDP ratio (46.1%) in 2022, followed by Norway (44.3%), while Mexico had the lowest (16.9%). Denmark recorded the largest fall in its tax-to-GDP ratio between 2021 and 2022 (-5.5%) as revenue from income taxes and from taxes on goods and services dropped. The largest increase was in Korea (2.2%), helped by higher corporate income tax and value added tax. Tax income in OECD countries falls in 2022 amid energy crisis by Matteo Allievi Reuters by Sunil Jagtiani Bloomberg favorite Dogecoin have also been advancing. ‘Kimchi premium’ The bullish overall mood is evident across a range of countries. Bitcoin on South Korea’s Upbit and Bithumb exchanges at one point was trading about 4% above the prevailing global price on Wednesday, a return of the so-called “kimchi premium” that made headlines during the pandemic-era bull run in digital assets. In Abu Dhabi, crypto mining hardware retailer Phoenix Group Plc jumped 35% on its debut on Tuesday. The firm is the first crypto-related listing in the Middle East. In El Salvador, Nayib Bukele said in a posting on X this week that the nation’s bitcoin investments had turned profitable. He’s running for reelection after stepping down as president last week. Another prop for sentiment is the socalled bitcoin halving due next year, which will cut in half the amount of tokens that Bitcoin miners receive as reward for their work. The quadrennial event is part of the process of capping bitcoin supply at 21 million tokens. The coin hit records after the last three halvings. “Both micro and macro factors are currently lining up for Bitcoin,” said Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC. Bitcoin traded at US$44,004 at 10:07am in London. It peaked at close to US$69,000 in November 2021. Read also: World Bank’s Banga calls for record replenishment of fund for poorest countries UK coping with higher rates for now but risks lie ahead — BOE
THURSDAY DECEMBER 7, 2023 22 THEEDGE CEO MORNING BRIEF WORLD (Dec 6): McDonald’s is planning to open about 10,000 restaurants globally by 2027 and more than double revenue from its loyalty programme, the company said on Wednesday, as it invests heavily to automate processes and speed up service at its stores. The expansion plans it laid out would take its restaurant count to about 50,000 in over 100 countries and mark the fastest period of growth in the company’s history, McDonald’s said ahead of its investor day. The company also said that it planned to increase the user base of its loyalty programme to 250 million customers by 2027, putting it on track to deliver US$45 billion (RM210 billion) in annual sales. The programme currently has 150 million active users, who generate over US$20 billion in system-wide sales. Shares of the company were down marginally in volatile premarket trading. McDonald’s has doubled down on its marketing strategies over the past several McDonald’s plans to add about 10,000 new stores by 2027, double loyalty programme sales LONDON (Dec 6): British American Tobacco said it would take a hit of around US$31.5 billion (RM147.1 billion) as it writes down the value of some US cigarette brands, acknowledging on Wednesday that its traditional market has no long term future. BAT’s move comes as ever stricter regulation and growing awareness of health risks squeeze tobacco companies’ traditional business, driving declines in cigarette volumes in some markets. The maker of Lucky Strike and Dunhill cigarettes also pointed to economic challenges in the US, where some inflation-weary consumers are downgrading to cheaper brands, and the rise of illicit disposable vapes putting pressure on its US cigarette division. These factors contributed to the around £25 billion non-cash adjusting impairment charge relating to some US cigarette brands, BAT said. Its Newport, Camel, Pall Mall and Natural American Spirit brands BAT writes down US$31.5 bil from value of US cigarette brands Twitch to shut down in South Korea due to high costs BY EMMA RUMNEY Reuters BY GNANESHWAR RAJAN Reuters BY DEBORAH SOPHIA Reuters were affected, a spokesperson added. It was assessing the brands’ “carrying value and useful economic lives over an estimated period of 30 years,” BAT chief executive Tadeu Marroco said in a statement. It added that it would start amortising the value of its remaining US combustibles brands in 2024 in its first acknowledgement that their value would, over time, reduce. BAT’s shares fell more than 8% in early trade to 4-1/2 year lows, wiping about £4 billion of the company’s value. Imperial Brands shares were down more than 2%. Like rivals, BAT has been investing heavily in smoking alternatives like vapes. On Wednesday, it added a new ambition to generate 50% of its revenues from non-combustibles by 2025 and said it now expects its business from such “new categories” to break even in 2023, a year ahead of its current projection. James Edwardes Jones, analyst at RBC Capital Markets, welcomed the ambition given the US charge and a “grim” outlook for BAT. “Goodness, that’s a big number,” he said of the charge, adding it exemplifies the “perils of the industry” and sends less confident signals about the outlook for cigarettes. BAT said full-year revenue growth would likely be at the lower end of its 3-5% range. It also expected low single-digit growth in revenue and adjusted profit from operations in 2024. years, including piloting its “Best Burger” initiative to improve the quality of its burgers. The initiative — which the company scaled to 70 markets recently — will be deployed to nearly all markets by 2026, it said. For 2024, McDonald’s expects nearly 2% growth in system-wide sales, on a constant currency basis, compared with the 1.5% growth it expects for 2023. Operating margins next year are estimated to be in the mid-to-high 40% range. It also partnered with Alphabet’s Google Cloud to deploy artificial intelligence (AI) solutions to its restaurants worldwide. That would include automating processes to help deliver hotter, fresher food to customers faster. Although US consumer spending has been pressured, McDonald’s has remained largely unaffected due to its affordable menu items and aggressive promotions. McDonald’s topped estimates for sales and profit in the quarter ended September. (Dec 6): Amazon’s streaming unit Twitch on Tuesday said it will shut down operations in South Korea in February next year, due to high operating costs and network fees. “Twitch has been operating in Korea at a significant loss, and unfortunately there is no pathway forward for our business to run more sustainably in that country,” chief executive officer Dan Clancy said in a blog. Network fees in South Korea are still 10 times more expensive than in most other countries, he said, adding that the company spent significant effort working to reduce operating costs to remain in business. Twitch had laid off more than 400 employees in March after its user and revenue growth did not meet expectations. Read also: Nissan to buy engines, gearboxes from Renault-Geely venture REUTERS
THURSDAY DECEMBER 7, 2023 23 THEEDGE CEO MORNING BRIEF WORLD TOKYO (Dec 6): Rakuten Group said on Wednesday it plans to sell a large stake in Rakuten Bank to overseas investors, its latest fundraising effort as the Japanese company grapples with heavy debt and losses at its mobile network unit. The planned sale of 25.5 million shares is equivalent to just under 15% of the online bank, according to LSEG data. The shares will be priced at between ¥2,400 and ¥2,500 each, according to a source, comprising a discount of 8.7%- 12.3% on Wednesday’s closing price of ¥2,738 and raising a maximum of ¥63.8 billion (RM2 billion). The e-commerce and financial services group said it would use the proceeds to repay bonds early as it was committed to reducing interest-bearing debt. Hit by spiralling costs to build out its mobile network, it has almost ¥800 billion in bond redemptions due before the end of 2025. The unit’s troubles have also resulted in Rakuten logging 13 consecutive quarters of operating losses. Since 2021, Rakuten has issued new shares to strategic investors and the public, twice sold down its holding in its securities arm Rakuten Securities, and listed Rakuten Bank in April of this year. The listing raised ¥72 billion and reduced Rakuten’s holding in the bank to 63.3%. The price of the shares will be determined after a book building period between Dec 6 and 7, Rakuten Bank said in a separate statement. Analysts predict Rakuten may soon seek to list its credit card business Rakuten Card, which includes the group’s lucrative points and payments system. Japan’s Rakuten to raise up to US$433 mil with further sale of bank unit BY ANTON BRIDGE Reuters Read also: Japan’s Kishida cancels yearend parties on funding scandal REUTERS net interest income for relevant sectors in the past during the transition from a state with positive interest rates to a state without them,” Himino said in a speech on Wednesday to local business leaders in Oita, southwestern Japan. Himino indicated that the first rate hike since 2007 might not be as harmful as some have feared. Himino said households would probably benefit from improved net income if rates moved to positive territory, and the impact on the corporate sector would likely be limited. He also said the financial system is resilient enough to cope with that transition. The comments were the clearest sign so far from the BOJ’s leadership that au- (Dec 6): Bank of Japan (BOJ) deputy governor Ryozo Himino signalled that the central bank is inching closer to putting an end to the world’s last negative interest rate regime by laying out a hypothesis for what might happen if indeed rates go positive. While Himino reiterated a standard pledge to continue with monetary easing until the BOJ achieves its goal of sustainable inflation with wage increases, he then outlined the various potential impacts that would follow an exit from large-scale stimulus partly by examining what happened when rates went negative. “Today, I would like to offer one perspective by looking at what happened to thorities are considering what the impact would be if they ended negative rates. The views will likely reinforce expectations among BOJ watchers that the bank will end negative rates by the middle of next year. Himino appeared intent on soothing any jitters among Japanese over the prospects of ending the BOJ’s massive stimulus programme, which included taking rates negative in early 2016. If it’s done properly, “there would be a sufficient possibility of achieving a positive outcome from the exit, since a wide range of households and firms would benefit from the virtuous cycle between wages and prices”, Himino said. Financial institutions might face unrealised losses on holdings of long-term bonds, but they’d also have the opportunity to raise their investment yields by replacing the bonds they hold with new ones, he said. Japan’s regional banks called on the BOJ to scrap its negative interest rate when executives met with central bank officials last month, people familiar with the matter told Bloomberg. Speaking to reporters later the same day, Himino stopped short of indicating a possible time frame for starting the exit, saying there is no preset schedule for that process, and the bank will carefully assess economic conditions before embarking upon it. At one point, market players were betting the negative rate policy would end in April. Overnight-indexed swaps now estimate the policy will end in July. Swaps show cumulative rate hikes of 21 basis points by the end of next year. Bank of Japan deputy chief hints that end of world’s last negative interest rate regime may be closer BY TORU FUJIOKA Bloomberg BLOOMBERG
THURSDAY DECEMBER 7, 2023 24 THEEDGE CEO MORNING BRIEF WORLD (Dec 6): The Italian government has told China it plans to exit the massive Belt and Road Initiative investment programme which Rome signed up to in 2019, according to Foreign Minister Antonio Tajani. The pact “has not produced the desired effects” and is no longer “a priority,” Tajani said at a Rome event hosted by newswire Adnkronos. Countries not part of the pact “have had better results.” Italy’s participation was due to expire on March 22 and Italy had to decide by the end of the year whether it would renew Chinese President Xi Jinping’s signature programme. Prime Minister Giorgia Meloni has for months been preparing the ground diplomatically to put an end to the programme, which Italy was the only Group of Seven country to join. The infrastructure programme was launched by Xi a decade ago to boost economic ties and expand the influence of the world’s second-biggest economy. Italy, like much of Europe, has been caught in the middle as tensions escalate between Washington and Beijing, and that’s been compounded by China’s support for Russia since it invaded Ukraine. European countries are struggling to balance a desire to engage with China on trade and investment while pushing back against claims of economic coercion and human rights concerns, as well as risks associated with becoming too dependent on supplies from China. The government intends to continue to strengthen bilateral relations between the two countries, Tajani said. Italy tells China it will exit Belt and Road investment pact (Dec 6): Dalian Wanda Group Co’s founder Wang Jianlin is planning to sell the rest of the firm’s film unit as the troubled Chinese conglomerate faces increasing debt repayment pressure. The billionaire plans to transfer his 51% stake in Beijing Wanda Investment Co, which controls Wanda Film Holding Co, to a subsidiary of China Ruyi Holdings Ltd, according to a Shenzhen Stock Exchange filing on Wednesday. That will give Ruyi full ownership after its July purchase of 49% of Beijing Wanda Investment for 2.3 billion yuan (RM1.51 billion). The filing didn’t disclose details on BEIJING (Dec 6): China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even as it aims to start phasing down coal use in the second half of this decade. Draft rules for the new system did not give details on exactly how the reserve would work, but said the aim was to have 300 million metric tonnes of “dispatchable” annual coal production by 2030, equivalent to 7% of its 2022 production. China is the world’s top coal consumer and producer. Last year, it produced a record 4.5 billion metric tonnes. Beijing set a goal in 2021 to have coal reserves equivalent to 15% of its annual consumption stocked at mines, ports, power the value of the purchase. China Ruyi’s Hong Kong-listed shares jumped as much as 9.6% before trading 2.8% higher by 3.23pm local time. Wanda Film’s shares remain halted. An exit from the film business, one of Wanda’s core operations, brings to an end Wang’s ambitions of turning his firm into a rival of Walt Disney Co. The group has been in decline for years after the stock-market bubble burst in 2015 and China cracked down on excessive debtfuelled expansion by some local firms. It’s been forced to shed a raft of assets that once brought it clout, including a stake in Spanish soccer club Atletico Madrid and the world’s largest cinema chain AMC Entertainment Holdings Inc. And Wang’s personal fortune has dived from a peak of US$46.1 billion in mid-2015 to US$6.2 billion. China’s latest economic slowdown and property market crisis has deepened the company’s woes. Investors last month rejected Wanda’s proposal to extend the deadline for the repayment of 30 billion yuan plus interest if its mall unit fails to list shares by the end of this year. Its property arm only recently managed to obtain consent from creditors to push back the maturity date for a US$600 million dollar bond. Wanda Film operates more than 800 movie theatres across China as well as Australian cinema chain Hoyts Group. It’s also invested in the production of some successful Chinese films including The Wandering Earth II and No More Bets, the country’s second- and third-highest grossing titles this year, according financial results for the three months through September. Wanda’s billionaire founder sells film unit as debt pressure builds China to set up coal production reserve to stabilise prices BY SHIRLEY ZHAO Bloomberg BY COLLEEN HOWE & ANDREW HAYLEY Reuters BY ALESSANDRA MIGLIACCIO & FLAVIA ROTONDI Bloomberg plants and some designated storage areas. The new system will build on these stockpiles by ensuring that a certain amount of production capacity is ready to be mined when needed. Read the full story BLOOMBERG
THURSDAY DECEMBER 7, 2023 25 THEEDGE CEO MORNING BRIEF WORLD Myanmar central bank to let market decide own forex rates (Dec 6): ByteDance Ltd, the parent of social video phenom TikTok, is offering to buy back up to US$5 billion (RM23.36 billion) from investors, according to people familiar with the matter. The new offer, earlier reported by the South China Morning Post, is pitched at US$160 per share, the same level as ByteDance offered to employees in November, the people said, asking not to be named discussing a private matter. It’s at a valuation roughly 11% lower than the price ByteDance offered to investors in 2022, which would still place it among the 40 most valuable public companies in the world, and third in China behind Tencent Holdings Ltd and Kweichow Moutai Co. The Beijing-based internet company has ascended to become one of China’s internet leaders, alongside Tencent and Alibaba Group Holding Ltd, leveraging the popularity of its social video services to expand into e-commerce and other spheres. Its ventures into gaming and virtual reality, however, have proven unsuccessful, and the company has begun winding down efforts outside its core business, which is led by TikTok and its Chinese twin Douyin. ByteDance has long been the world’s most valuable start-up, but plans for a splashy initial public offering have been hit by a series of setbacks, from a crackdown on internet firms at home in China to elevated scrutiny in key markets overseas. India, once TikTok’s biggest market by number of users, banned the app as part of ByteDance offers investors a buy-back at US$268 bil valuation BY ZHEPING HUANG & JANE ZHANG Bloomberg Reuters a sweeping expulsion of Chinese software in 2020. TikTok’s US operations have also been the subject of fierce criticism by politicians in Washington, who see it as a potential national security threat. In Indonesia, TikTok was forced to suspend its burgeoning e-commerce business, and is now working Read also: Australian economy surprisingly slows as rates damp spending on a tie-up with local partner GoTo Group. Domestic rivals in China have had varying degrees of success recovering from the crackdown and the economic fallout from Covid Zero policies. Tencent’s stock is today up 5% from a year ago, having returned to growth and adapted to ByteDance’s challenge with the expansion of its WeChat video service. Temu-operator PDD Holdings Inc has dethroned Alibaba as China’s most valuable e-commerce company for the first time, as its elder rival grapples with a tumultuous reorganisation. ByteDance occupies a unique position in having some of the most downloaded apps in both the US and China, with its revenue surging 30% to surpass US$80 billion in 2022. Its successful roll-out of TikTok Shop and on-demand services in China have made the withdrawal from the games business less of an issue than it otherwise may have been. demand, while cracking down on blackmarket trading, with the licences of more than 140 non-compliant money changers revoked this year. Under military rule, there has been a move from a managed floating exchange rate system towards reliance on administrative controls, including rules on firms to surrender foreign exchange and report currency trades. Exporters have been required to convert dollar earnings into kyat at the official rate set by the central bank, which in August ordered ministries and local governments not to use foreign currencies for domestic transactions, to ease pressure on the kyat currency. The World Bank in a report in June said Myanmar’s economy was showing some signs of stabilisation, but was constrained by weak investment and businesses were struggling with rising costs and difficulties sourcing materials and getting access to Bank staff shows US$100 bills at AYA foreign currency. Bank's money changer in Yangon. The state media reported on Wednesday the Central Bank of Myanmar will allow banks and licensed dealers to decide their own rates. (Dec 6): Myanmar’s central bank will no longer set exchange rates for foreign currencies and will allow banks and licensed dealers to decide their own rates, state media reported on Wednesday, in a rare easing of some of its tight controls. The report gave no reason for Tuesday’s decision by the Central Bank of Myanmar (CBM) and no notice of the policy change was posted on the CBM’s website. Calls to the CBM went unanswered early on Wednesday. With Myanmar’s economy in tatters in the aftermath of a 2021 coup, financial authorities have been trying to exert more control over foreign currencies to suppress BLOOMBERG REUTERS
THURSDAY DECEMBER 7, 2023 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) VELESTO ENERGY BHD 105.8 -0.015 0.205 36.67 1,684.2 WIDAD GROUP BHD 72.5 0.005 0.470 9.30 1,455.3 BINA PURI HOLDINGS BHD 66.8 0.005 0.070 75.00 235.9 SARAWAK CONSOLIDATED 65.0 0.015 0.795 448.28 509.0 LEFORM BHD 58.2 0.010 0.350 69.57 518.4 RENEUCO BHD 52.0 0.015 0.230 -36.99 165.7 TOP GLOVE CORP BHD 39.5 -0.015 0.825 -8.84 6,606.7 ZELAN BHD 38.1 0.010 0.060 -14.29 50.7 KPJ HEALTHCARE BHD 33.2 0.010 1.340 32.67 5,848.2 TANCO HOLDINGS BHD 30.2 0.005 0.565 68.66 1,135.5 KNM GROUP BHD 28.7 0.000 0.095 90.00 384.2 DAGANG NEXCHANGE BHD 25.0 -0.010 0.400 -21.57 1,262.5 MQ TECHNOLOGY BHD 24.4 0.005 0.030 -40.00 44.1 YTL POWER INTERNATIONAL BHD 22.1 0.010 2.260 216.08 18,310.9 KEY ASIC BHD 21.9 0.000 0.070 7.69 97.9 PANDA ECO SYSTEM BHD 20.7 -0.010 0.195 - 130.9 SAPURA ENERGY BHD 19.4 0.000 0.040 14.29 639.2 YTL CORP BHD 18.1 0.010 1.540 165.52 16,885.2 REACH ENERGY BHD 18.0 0.005 0.040 -11.11 85.2 MESTRON HOLDINGS BHD 17.4 0.015 0.455 1.11 453.5 Data as compiled on Dec 6, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) FINTEC GLOBAL BHD 0.010 100.00 1,496.1 0.00 59.2 LAMBO GROUP BHD 0.020 33.33 69.2 -63.64 30.8 G3 GLOBAL BHD 0.025 25.00 362.6 -16.67 94.3 HONG SENG CONSOLIDATED BHD 0.025 25.00 3,434.1 -88.64 127.7 WAJA KONSORTIUM BHD 0.055 22.22 2,788.9 -38.89 61.3 CME GROUP BHD 0.030 20.00 1.0 0.00 31.0 ZELAN BHD 0.060 20.00 38,056.9 -14.29 50.7 MQ TECHNOLOGY BHD 0.030 20.00 24,414.7 -40.00 44.1 BSL CORP BHD 0.035 16.67 503.3 -48.22 67.6 SEALINK INTERNATIONAL BHD 0.175 16.67 8,235.1 75.00 87.5 XOX NETWORKS BHD 0.035 16.67 4,759.8 16.67 39.7 SOUTHERN STEEL BHD 0.705 16.53 1,899.9 20.51 420.4 REACH ENERGY BHD 0.040 14.29 17,996.7 -11.11 85.2 INDUSTRONICS BHD 0.040 14.29 2,919.0 -46.67 28.3 EG INDUSTRIES BHD 1.680 12.75 6,295.2 211.11 756.4 PROGRESSIVE IMPACT CORP BHD 0.090 12.50 736.1 -65.38 59.0 SAPURA RESOURCES BHD 0.395 11.27 3.2 16.18 55.1 INFRAHARTA HOLDINGS BHD 0.100 11.11 10.5 -20.00 38.4 SALCON BHD 0.265 10.42 7,794.1 18.10 268.3 SEREMBAN ENGINEERING BHD 0.750 10.29 0.5 -33.04 59.8 Data as compiled on Dec 6, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.005 -50.00 1,726.0 -50.00 54.1 EUROSPAN HOLDINGS BHD 1.110 -28.39 1.0 -1.77 49.3 XIDELANG HOLDINGS LTD 0.020 -20.00 2,840.3 -20.00 42.3 NEXGRAM HOLDINGS BHD 0.025 -16.67 46.5 -64.29 16.2 SMTRACK BHD 0.035 -12.50 1,856.5 -30.00 42.8 PDZ HOLDINGS BHD 0.040 -11.11 498.6 0.00 23.3 WMG HOLDINGS BHD 0.090 -10.00 13.5 -5.26 40.0 HB GLOBAL LTD 0.090 -10.00 1,674.4 -47.06 70.4 FITTERS DIVERSIFIED BHD 0.045 -10.00 2,375.0 -35.71 105.4 ADVANCE INFORMATION 0.145 -9.38 902.0 8.70 15.6 KIA LIM BHD 0.500 -8.26 663.5 53.85 31.0 PAN MALAYSIA HOLDINGS BHD 0.060 -7.69 63.7 -14.29 55.7 DIGISTAR CORP BHD 0.060 -7.69 45.0 -14.29 27.9 SARAWAK CABLE BHD 0.065 -7.14 2,879.5 0.00 25.9 PERTAMA DIGITAL BHD 2.560 -6.91 8,561.0 45.45 1,121.8 LANDMARKS BHD 0.205 -6.82 1,425.9 5.13 137.7 VELESTO ENERGY BHD 0.205 -6.82 105,789.1 36.67 1,684.2 ARB BHD 0.075 -6.25 1,898.3 -40.00 92.7 ASIA POLY HOLDINGS BHD 0.080 -5.88 350.0 -27.27 76.7 MATANG BHD 0.085 -5.56 125.0 0.00 203.1 Data as compiled on Dec 6, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 114.300 -0.700 113.0 -18.36 26,803.4 EUROSPAN HOLDINGS BHD 1.110 -0.440 1.0 -1.77 49.3 FRASER & NEAVE HOLDINGS BHD 27.260 -0.380 71.2 26.32 9,998.4 HEXTARTECHNOLOGIES SOLUTIONS 22.280 -0.320 8.2 30.60 2,866.3 MALAYSIAN PACIFIC INDUSTRIES 26.700 -0.280 25.4 -7.16 5,310.5 HONG LEONG BANK BHD 19.000 -0.220 501.3 -7.59 41,186.6 PERTAMA DIGITAL BHD 2.560 -0.190 8,561.0 45.45 1,121.8 HEINEKEN MALAYSIA BHD 21.100 -0.180 566.2 -16.27 6,374.3 IMASPRO CORP BHD 4.980 -0.160 1,511.8 -14.87 398.4 ALLIANZ MALAYSIA BHD 18.160 -0.160 23.6 28.25 3,231.9 SAM ENGINEERING & EQUIPMENT 4.030 -0.120 562.5 -18.26 2,182.6 NEW HOONG FATT HOLDINGS BHD 3.360 -0.110 20.1 17.07 277.8 CHIN HIN GROUP BHD 3.550 -0.080 663.4 9.91 6,281.4 HARTALEGA HOLDINGS BHD 2.370 -0.080 6,839.7 39.41 8,089.4 KELINGTON GROUP BHD 1.880 -0.070 4,818.5 37.23 1,212.2 DUTCH LADY MILK INDUSTRIES BHD 22.280 -0.070 7.3 -26.32 1,425.9 PADINI HOLDINGS BHD 3.540 -0.060 452.5 6.09 2,329.0 PANASONIC MANUFACTURING 17.940 -0.060 10.2 -21.66 1,089.8 BURSA MALAYSIA BHD 6.750 -0.060 84.9 1.50 5,462.8 GREATECH TECHNOLOGY BHD 4.580 -0.060 438.3 -5.37 5,744.2 Data as compiled on Dec 6, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) RAPID SYNERGY BHD 28.700 0.700 391.4 79.82 3,067.9 EG INDUSTRIES BHD 1.680 0.190 6,295.2 211.11 756.4 KOTRA INDUSTRIES BHD 4.790 0.140 53.8 -27.42 710.4 CARLSBERG BREWERY MALAYSIA 19.120 0.140 166.3 -16.43 5,845.9 PIE INDUSTRIAL BHD 3.290 0.110 311.3 27.31 1,263.5 SOUTHERN STEEL BHD 0.705 0.100 1,899.9 20.51 420.4 UNITED PLANTATIONS BHD 16.860 0.100 527.2 15.14 6,993.3 D&O GREEN TECHNOLOGIES BHD 3.600 0.090 1,573.3 -15.89 4,457.8 SFP TECH HOLDINGS BHD 0.950 0.080 5,880.3 58.33 2,280.0 HUME CEMENT INDUSTRIES BHD 2.250 0.080 1,069.2 139.36 1,394.9 MCE HOLDINGS BHD 2.010 0.080 1,187.1 48.89 124.2 WELLCALL HOLDINGS BHD 1.770 0.070 2,461.0 56.64 880.6 SEREMBAN ENGINEERING BHD 0.750 0.070 0.5 -33.04 59.8 JF TECHNOLOGY BHD 0.980 0.060 2,906.5 20.99 908.5 MEGA FIRST CORP BHD 3.590 0.060 966.7 8.13 3,384.5 NATIONGATE HOLDINGS BHD 1.400 0.060 6,723.6 - 2,903.5 PETRONAS DAGANGAN BHD 22.660 0.060 342.7 -0.82 22,511.7 ABLE GLOBAL BHD 1.400 0.060 2,422.5 3.70 430.6 CB INDUSTRIAL PRODUCT 1.260 0.050 757.7 14.55 596.4 ORIENTAL FOOD INDUSTRIES 1.690 0.050 387.3 26.12 405.6 Data as compiled on Dec 6, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 36,124.56 -79.88 -0.22 S&P 500 * 4,567.18 -2.60 -0.06 NASDAQ 100 * 15,877.71 38.04 0.24 FTSE 100 * 7,489.84 23.51 0.31 AUSTRALIA 7,178.35 116.80 1.65 CHINA 2,968.93 -3.36 -0.11 HONG KONG 16,463.26 135.40 0.83 INDIA 69,653.73 357.59 0.52 INDONESIA 7,087.40 -13.46 -0.19 JAPAN 33,445.90 670.08 2.04 KOREA 2,495.38 1.10 0.04 PHILIPPINES 6,305.85 -3.10 -0.05 SINGAPORE 3,087.24 10.08 0.33 TAIWAN 17,360.72 32.71 0.19 THAILAND 1,389.55 6.01 0.43 VIETNAM 1,126.43 10.46 0.94 Data as compiled on Dec 6, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,719.00-62.00 OIL US$ 76.52-0.68 RM/USD 4.6683 RM/SGD 3.4822 RM/AUD 3.0691 RM/GBP 5.8827 RM/EUR 5.0373
CEOMorningBrief THURSDAY, DECEMBER 7, 2023 ISSUE 682/2023 theedgemalaysia.com SETTING NEW BENCHMARKS. SHAPING THE FUTURE.
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 THURSDAY DEC 7, 2023 SCAN ME No. 8410 PP 2644/12/2012 (031195) Berjaya founder gets permanent restraining order against Kedah MB Report on — page 2 Sanusi prohibited from repeating remarks against business magnate pending disposal of defamation suit. Royal decree on violence iolence Report on — page 5 Court commutes death sentences of septuagenarian and eight others to 30 years’ jail. Report on — page 6 Urgent changes needed to boost food security, expel inefficient officials to address plight of padi farmers: Expert Report on — page 3 ALL DECKED OUT ... Some of the 25 fishing vessels taking part in the Decorated Boat Competition in conjunction with the Fisheries Development Authority’s 52nd anniversary in Labuan yesterday. – BERNAMAPIC Call for agricultural reforms King: Malaysia rejects all forms of brutality against innocent civilians in armed conflicts in various parts of the world. Nine drug traffickers escape hangman’s noose
THURSDAY | DEC 7, 2023 2 ‘Reject violence against innocent citizens’ KUALA LUMPUR: The Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah decreed that Malaysia rejects all forms of violence against innocent civilians in armed conflicts happening in various parts of the world right now. His Majesty said these include bombings of hospitals and schools and the disruption of water, food, and electricity to the public. “As a sovereign and independent nation, it is our responsibility to reject all forms of violence that are contrary to international humanitarian norms. Leaders, including those in the security and defence sectors, must adhere steadfastly to the principles of universal peace and humanity. “I am worried that if we do not apply these principles from now on, any dispute in the future will inevitably end in an armed conflict that will disregard all forms of humanitarian rationality,” Al-Sultan Abdullah said in his royal oLeaders in security, defence sectors must adhere steadfastly to principles of universal peace and humanity, says King address at the 13th Convocation Ceremony of Universiti Pertahanan Nasional Malaysia (UPNM) at the World Trade Centre here yesterday. Present were Higher Education Minister Datuk Seri Mohamed Khaled Nordin, Chief of Defence Forces Jen Tan Sri Mohammad Ab Rahman and UPNM vice-chancellor Lt-Jen Datuk Mardzuki Muhammad. The King said considering the ongoing armed conflicts, UPNM should be turned into a central hub in instilling an understanding and adherence to international humanitarian laws among the future society and leaders of the country, Bernama reported. Al-Sultan Abdullah, who is also the UPNM chancellor, said this is because international laws emphasise the humanitarian elements in controlling the adverse effects of armed conflict and warfare. “In this challenging era, the role of higher education institutions demands a new paradigm shift towards excellence as institutions supporting the people and the nation. “UPNM, as a premier defence university in this region, is responsible for producing future leaders to ensure success and defend the strategic interests of the country,” the King said. His Majesty added that UPNM also needs to confront the challenges of the current geopolitical realities wisely and continually explore and identify new areas within the security and defence landscape. A total of 1,490 UPNM graduands will receive their scrolls at the convocation, including 11 who will be receiving a Doctor of Philosophy degree, 93 who will receive a Master’s degree, 986 a Bachelor’s degree and 400, a diploma. UPNM also conferred an honorary doctorate on two former defence forces chiefs, namely Jen (Rtd) Tan Sri Azizan Ariffin in Aeronautic Engineering and Jen (Rtd) Tan Sri Zulkifeli Mohd Zin in Strategic and International Relations. Former United Arab Emirates ambassador to Malaysia Datuk Khalid Ghanim Mohammed AlGhaith was also conferred the honorary doctorate in international relations. 6.5m eMadani applications approved PUTRAJAYA: A total of 6.5 million eMadani credit assistance applications have been approved and credited to recipients, involving an allocation of RM650 million thus far, said Deputy Finance Minister Datuk Seri Ahmad Maslan. Speaking at a survey of eMadani credit redemption at a supermarket yesterday, Ahmad said another 1.8 million applications are still in the approval process, which will take one to five days. “However, those who fail in their application can appeal,” he said. Ahmad added that applications on all other e-wallet service provider applications will be rejected if they fail on the first application. He said those who failed could appeal through several platforms, including via email to [email protected] or by calling 03-8882 4565 or 1 800 88 2747. The four e-wallet service providers are Shopee, Maybank MAE, Touch ’n Go and Setel Ahmad promoting the eMadani initiative at a supermarket in Putrajaya yesterday. – BERNAMAPIC Petronas. – Bernama Clear policies needed to attract investors: PM KUALA LUMPUR: The government has an important role in enacting clear and integrated policies to attract and retain investors in Malaysia, said Datuk Seri Anwar Ibrahim. The prime minister, in a Facebook post on Tuesday night, said the approach to dealing with the industry also needed to be instilled in a way that the policies and initiatives created were in line with current and future needs. He said these were among the things he shared during a courtesy visit of Semiconductor Industry Association (SIA) vice-president (global policy) Mary Thornton and her delegation on Tuesday. “During the meeting, SIA members took the opportunity to inform me about industry planning and recommendations in strengthening Malaysia’s attractiveness as a destination for foreign investment, especially at the high-value chain level. “Among other things, I explained the government’s important approach, which encourages the private sector to lead skills centres as a step to overcome the issue of the new workforce not matching the needs of the industry,” said Anwar, who is also the finance minister. He said the delegation also agreed that the ecosystem of small and medium enterprises that contributed to the production chain of the world’s major companies should always be emphasised and supported. SIA has been the voice of the US semiconductor industry for more than four decades. Its members represent more than 99% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms. – Bernama Govt actively calling for Israel to answer to international court KUALA LUMPUR: The government, through the Foreign Ministry, is playing an active role in calling for the international community to bring the issue of the Israeli atrocities to the International Criminal Court (ICC), the Senate was told yesterday. Deputy Foreign Minister Datuk Mohamad Alamin said even though Malaysia is not a member of the Rome Statute of the ICC, the country can support the international community to bring Israel to justice for the atrocities against the Palestinian people. “The role (by Malaysia) includes working on an ad-hoc basis with the ICC Public Prosecutor’s Office to support its investigation, in addition to helping in terms of providing legal documents or facilitating the presence of voluntary witnesses who can support the case when it is presented at the ICC later,” he said in an oral answer session at the Dewan Negara yesterday. He was replying to a supplementary question from Senator Datuk Noraini Idris on Malaysia’s role on the issue of Israeli atrocities in Palestine. Mohamad said the government had also submitted a written statement of Malaysia’s view as required by the International Court of Justice (ICJ) regarding the effects of Israel’s brutality against Palestine last July 25. “Insya-Allah, we will also submit an oral submission to appear at the ICJ on Feb 19 next year. This is one of Malaysia’s commitments to fight for the rights of the Palestinian people and support the call by the international community to bring Israel to justice,” he said. Israel resumed attacks on the Gaza Strip last Friday after a week-long humanitarian truce with Hamas ended. At least 15,899 Palestinians were killed and another 42,000 injured in the air and ground attacks by Israel. – Bernama Third Palestine aid shipment on Dec 18 PUTRAJAYA: The shipment of Malaysia’s third humanitarian aid for Palestine is expected to take place on Dec 18. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the shipment, involving 60 tonnes of various types of goods, is coordinated by Wisma Putra. Ahmad Zahid said he hoped Malaysians will continue to show concern as Israeli aggression on the southern Gaza Strip is becoming more and more painful. “The aggression is still being carried out by the Zionist forces, and we cannot just stand by. We need to continue providing assistance to the Palestinian people, especially those in Gaza who are under constant pressure from Israel,” he said after the presentation of RM621,954 donation by Wanita Umno and RM200,000 by Syarikat 99 Speedmart Sdn Bhd for the Humanitarian Trust Fund for the People of Palestine here yesterday. – Bernama
THURSDAY | DEC 7, 2023 3 KUALA LUMPUR: An expert has called for urgent reforms in the agriculture sector to boost food security and for the removal of inefficient government officials to address the financial plight of padi farmers. Universiti Putra Malaysia (UPM) Institute of Tropical Agriculture and Food Security consultant fellow Prof Datin Dr Fatimah Mohamed Arshad was commenting on the recently released 2022 Auditor General’s Report. “Placing inefficient government officials in key positions leads to the mishandling of public funds, as has been seen in various agricultural projects. “This is a key factor in the income distribution problems faced by padi farmers and such officials should be immediately removed,” she said. While raising concerns about the financial plight of the farmers, the Auditor General’s Report also revealed nearly a quarter of them earned less than RM600 a month. The 2021 Rice and Rice Industry Statistics report also revealed the estimated monthly income for each hectare of padi production was just RM629.76. “About 22.7% of Malaysia’s 77,275 padi farmers fall into this income category, requiring urgent measures to address the challenges in this crucial sector. “Specifically, over 26,000 farmers earn between RM600 and RM1,499.99, with an additional 15,116 falling in the RM1,500 to RM2,499.99 income range. “To surpass the national poverty line of RM2,208 per month, padi farmers would need to cultivate a minimum of 3.6ha of land,’ the report said. Fatimah also raised the issue of “lack of competitiveness” of rice markets, saying it is being controlled by only 12 suppliers with significant market power. “Moving away from centralised distribution and fostering competition can open doors for young entrepreneurs in agriculture.” Fatimah said while these issues shed light on the economic challenges faced by padi farmers, it is noteworthy to recognise that efforts have been made to improve the agriculture sector. “The government has transformed the agriculture sector by promoting technology, implementing market reforms and empowering farmers with smart policies to produce a resilient, fair and sustainable food system. “However, we still need swift action to break the cycle of poverty among padi farmers by having farmer-led cooperatives modelled after successful examples in Taiwan, Korea and India.” She also said using “smart agriculture technology” and having centralised distribution, limited seed suppliers and few equipment manufacturers limit economic opportunities for farmers. Fatimah added that by not fully utilising the funds allocated for farming technology, Malaysia would not reduce its reliance on labour, support eco-friendly practices, or improve productivity. To empower farmers and encourage competition, she urged the government to shift its role and support the farming sector through research, development and training. “This should also involve breaking up monopolies, welcoming new entrepreneurs and promoting technological innovations in supply chains. “Malaysia should invest more in smart climate agriculture with an approach to improve efficiency, cut costs, enhance sustainability and ensure the farmers are economically stable.” She emphasised that a “fair food system” requires a competitive market without monopolies, adding that this would create a level playing field for farmers and entrepreneurs and allow them to lead organisations that drive the transformation. “By learning from successful models worldwide and incorporating technological advancements, we can build a vibrant agricultural sector that ensures food security, empowers farmers and contributes to the nation’s overall prosperity.” Reforms to drive sports development KUALA LUMPUR: The Youth and Sports Ministry has introduced 22 reforms to drive development in sports, which were achieved in nine months, said its Deputy Minister Adam Adli Abd Halim. He added that the reforms encompassed four main aspects, namely strengthening the sports ecosystem, cultivating sports, empowering youth and popularising the ministry’s facilities. “Within a year, we have put up at least 22 achievements and all of these are according to record. “For example, the most basic sports hall or the most important sports complex facility in the country is the Bukit Jalil National Stadium, which used to be more exclusive but is now widely open to use at the school level,” he said when appearing as a guest on RTM’s Naratif Khas programme broadcast on TV1 on Tuesday in conjunction with the Madani government one year anniversary. Adam Adli also emphasised that youths were not neglected by the Madani government as the group was also given attention through a new lease of life to the Rakan Muda programme in June, apart from introducing the Rukun Negara School initiative the following month, which aims to improve political literacy among youths. “The Rukun Negara School initiative aims to be a catalyst for a space outside the classroom where they can (develop) ideas that may not be discussed through school subjects,” he said. – Bernama Govt urged to review agriculture sector oQuarter of padi farmers earning below RM600 monthly due to mismanagement of income distribution, says expert Move to promote programmes to encourage healthy living KUALA LUMPUR: The IfitEr (I Fit and Eat Right) weight management programme, a health intervention initiative implemented at 30 wellness hubs nationwide, recorded the success of 9,031 individuals in losing weight. Health Deputy Minister Datuk Lukanisman Awang Sauni said under the initiative, a total of 4,846 individuals have also been able to quit smoking. “The Health Ministry, through the Malaysia Sihat National Agenda, is always proactive in enhancing public awareness of health issues, including non-communicable diseases such as high blood pressure, diabetes and high cholesterol. “Under Phase 1 (2020-2022) of the agenda, the dissemination of health literacy and awareness on the importance of health checkups will continue to be implemented from time to time,” he said during the question and answer session at the Dewan Negara yesterday. He was responding to a question from Senator Prof Tan Sri Mohamed Haniffa Abdullah on steps taken by the ministry to enhance public awareness on health screening and the spread of health literacy, with 73% of deaths recorded in the country being from non-communicable diseases caused by unhealthy living. Lukanisman said the health literacy and awareness programmes implemented included the Health Promotion in Learning Institutions, a health promotion and education initiative to target groups as young as preschool children. “Apart from that, we also have the Community Health Empowerment programme through the wellness hub and the Community Health Agent, which consists of volunteers from Combi, Kospen, dental (establishments), drug awareness ambassadors, village health representatives and members of the advisory panel and outreach programmes through Wellness on Wheels involving 623 community localities in the country,” he said. Lukanisman added that the National Health Screening Initiative was also implemented by the ministry in July 2022 for those aged 18 and above, with a total of 1.38 million individuals screened this year. – Bernama UUM achieves global governance ranking ALOR SETAR: Universiti Utara Malaysia (UUM) continues to be recognised internationally, after being ranked 821-840 in the QS World University Ranking: Sustainability 2024 for compliance with environmental, social and governance issues. Its vice-chancellor Prof Dr Mohd Foad Sakdan said overall, UUM was ranked 491 out of 1,403 of the world’s best universities in terms of governance. He said this indirectly serves as an important benchmark to attract more students not only from the country but also abroad, to pursue higher education at the university. “The success also proves UUM has the best governance in terms of a holistic organisational culture and integrity, and does not compromise on mismanagement. “The rating highlights the way the university takes action in dealing with issues in the three categories through research, teaching, strong governance and the university’s involvement with the community,” he said in a statement yesterday. According to Mohd Foad, the rating would allow UUM to be involved in global initiatives to strengthen sustainability and promote sustainable development by ensuring the next generation of students gets an education that emphasises a deep understanding of the concept of sustainability, to be passed on to the next generation. – Bernama █ BY SIVANISVARRY MORHAN [email protected] Call for makeup artist courses KUALA LUMPUR: Many makeup artists claim society stigmatises the profession as a low-class job, as it often gets viewed more as a hobby despite its potential to be a professional career. Yuslinaniza Mohd Hanafiah, 40, believes that educational institutions should play a key role in acknowledging the profession in order to help makeup artists advance. “The field of makeup artistry is broad. But no makeup courses are offered or recognised at the university level in this country, as there are for music, dance, film or theatre through the study of performing arts or creative industry programmes. (Having such courses) would show that makeup artistry is not a futile profession,” she said. Freelance akeup artist Dinie Awalluddin, 47, said community colleges, vocational colleges and GiatMara should enhance and broaden the makeup courses they offer in order to meet the demand of the industry. – Bernama UNIQUE BREW ... Experts demonstrating the art of preparing Turkish coffee using heated sand during an event organised by the Turkish Embassy in Kuala Lumpur. – ADIB RAWI YAHYA/THESUN
THURSDAY | DEC 7, 2023 4 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper 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 Algerian envoy visits theSun PETALING JAYA: Algerian ambassador to Malaysia Abdelhafid Bounour and Minister Plenipotentiary Ali Saidi paid a courtesy call on theSun yesterday. They were met by theSun editorial director Datuk Seri Azman Ujang, acting managing editor Navjeet Singh, associate editor Joshua Purushotman and business editor Annie Freeda Cruez. During the visit, Abdelhafid briefed theSun on his country’s business and tourism potential. “Algeria and Malaysia have always enjoyed excellent diplomatic relations since it was established in 1985. But even before then, during our struggle for independence from France in the 1960s, Malaysia raised money for us. “So, the Malaysian people are close to our hearts, and we have always considered Malaysia a good friend and a moderate Muslim brother. Now, we are eager to strengthen our relationship even further,“ he said. He invited Malaysians to visit Algeria as the country has many interesting tourist destinations, such as Kasbah, which is a walled area that was built on a hill over 1,000 years ago in the capital Algiers. Abdelhafid said other tourist destinations include the great mosque of Algiers, Djamaa el Djazair, which is known for having the tallest minaret in the world. He also said Algeria offers traditional hospitality, its Mediterranean climate in the north, and the Sahara, which covers nearly 80% of the country. “Around June next year, our national carrier Air Algerie will fly at least twice a week to Kuala Lumpur from Algiers. The details will be announced later, but this is another good reason for Malaysians to visit Algeria and vice-versa.“ Abdelhafid, who took up his post in Malaysia six months ago, said there are some 20 Malaysians taking degrees in Islamic Studies in his country while about 600 Algerian students were studying for various degrees in Malaysia. Navjeet told Abdelfafid theSun would be keen to carry news about Algeria and welcomes a stronger relationship with the embassy. Azman later showed the guests around the newsroom and briefly explained its functions. Abdelhafid briefing Navjeet and Azman on attractions in Algeria during his visit yesterday. – ADIB RAWI YAHYA/THESUN Oral injury risk from sports KUALA LUMPUR: Universiti Malaya orthodontist specialist Dr Nurul Alias Ahmad Fauzi has warned those participating in contact sports such as football, hockey and karate of potential risks to oral injuries. “Around 80% of such impacts affect the upper teeth, making them highly vulnerable to serious injury. In such high-energy sports, the likelihood of unexpected impacts from blows, kicks and collisions with hard surfaces and opponents is considerable.” Nurul said studies revealed a concerning trend of dental injuries during sports games, especially oExpert advocates use of mouthguards to prevent damage to teeth, that may require costly remedies █ BY JOSHUA PURUSHOTMAN [email protected] among children, adding that reports suggest sports-related accidents contribute between 10% and 39% of dental injuries. “Boys between eight and 11 years old appear more susceptible to such injuries compared with girls. There is also a notable gap in knowledge among educators regarding how to handle dental injuries in school settings, potentially complicating the medical response to such incidents.” Nurul said statistics emphasise the need for measures to reduce the risk of dental trauma during sports activities, and recommended the use of mouthguards. “Mouthguards can prevent knocked-out teeth and even a lifetime of dental visits as the repercussions encompass potential issues like periodontal disease,” she said, adding that individuals may experience fractured or chipped teeth and addressing these problems entails costly dental procedures such as root canals, crowns or implants. Stressing that mouthguards vary in types and functionalities, she said custom-made variants stand as the pinnacle of protection, but come at a higher cost.
THURSDAY | DEC 7, 2023 5 SHAH ALAM: The High Court yesterday granted Berjaya Land Bhd and Berjaya Group founder and adviser Tan Sri Vincent Tan a permanent injunction against Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor. The injunction prohibits Sanusi from repeating his comments about them and the Selangor Maritime Gateway project until the disposal of their defamation suit against him. Judicial Commissioner Choong Yeow Choy granted the order after hearing submissions from Chuar Kia Lin and Lew Wei Shing for Tan and Berjaya Land, and Mohd Faizi Che Abu and Mohd Yusfarizal Yussoff for Sanusi. “Both sides presented our case after which the court granted the injunction against Muhammad Sanusi,” Chuar said. While the court has not set a trial date for the defamation suit, Choong fixed Dec 21 for case management. Tan filed his legal suit against the PAS leader on Aug 8 at the High Court over the latter’s remarks in an Aug 2 speech. Sanusi is alleged to have made allegations of impropriety between Tan and Selangor Menteri Besar Datuk Seri Amirudin Shari over land in Selangor and the Selangor Maritime Gateway project. Tan and co-plaintiff Berjaya Land are seeking a court order for Sanusi to pay compensation in the form of general damages, compensatory damages, aggravated damages and exemplary damages. They claim Sanusi had made a speech which was defamatory of them during his “Jelajah Mega PN Best”/PN BEST Sayangi Kedah Sejahtera mega tour” election campaign. The speech was broadcast live to the public and republished on multiple social media channels, including Astro Awani, YouTube Live Video, Astro Awani Facebook Live Video, TV PAS Facebook Live Video and KiniTV YouTube Video. They decided to sue Sanusi after the latter failed to meet the requirements in a letter served on him on Aug 4, demanding a public apology and compensation of RM200 million over his defamatory and untrue accusations against Tan and Berjaya Land. The parties claim Sanusi’s defamatory statements have depicted them as, among others, a corrupt person/company and that they are the cronies of Amirudin. They further claim Sanusi’s speech accused them of having directly/indirectly received a 243ha parcel of free land from the Selangor government and that they have directly/indirectly given benefits to the Selangor menteri besar in exchange for the free land. Tan and Berjaya Land also claimed Sanusi’s speech alleged that they had benefited from the Selangor government through cronyism and nepotism as well as causing the Selangor state and its people to suffer at least RM180 million in losses. The defamatory allegations, aimed at damaging the business reputation of Tan and Berjaya Land, and contained politically motivated, malicious and disparaging statements, have been denied by Berjaya Land. A point-by-point rebuttal was issued via a press release by Berjaya Land on Aug 4 to correct the false and misleading statements made by Sanusi. Tan previously said: “Since the (then) Kedah caretaker menteri besar has failed to meet our demands, Berjaya Land and I have taken the necessary legal steps by filing a lawsuit against him. “This legal action seeks to address our grievances and seek appropriate remedies against Sanusi for his defamatory words and actions. “Berjaya and its subsidiaries have always upheld the highest standards of corporate governance and protect the interests of our stakeholders. “We firmly believe in the rule of law and will pursue all available legal avenues to ensure a satisfactory resolution of this matter.” Perak to crack down on public smoking IPOH: The Perak government is taking proactive measures to address the issue of smoking in public places, the State Legislative Assembly sitting was told. State Human Resources, Health, Indian Community Affairs and National Integration Committee chairman A. Sivanesan said this was evident with the increase in the number of enforcement activities, issuance of notices and compounds as of September this year, compared with 2022. According to him, 2,603 enforcement operations were conducted in 2022, compared with 2,274 operations from January to September this year. “As of September this year, 8,465 notices under Section 32B of the Food Act 1983 have been issued, compared with 5,222 notices issued last year. “A total of RM1,305,500 in compound payments was collected last year, while RM2,114,750 was collected between January and September 2023,” he said during the question and answer session yesterday. He said this in reply to a question from Dr Najihatussalehah Ahmad (PN-Bota) regarding the enforcement measures implemented by the state government to address the issue of smoking in public places. Meanwhile, Sivanesan said various measures have been implemented to address the smoking habit, especially among adolescents. He said the measures included carrying out enforcement activities, making announcements about places declared as nosmoking areas to the general public on a regular basis as well as conducting awareness campaigns. “A total of 108 advocacy programmes have been carried out in Perak, including in IPTA (public institutions of higher learning), schools, mosques, shopping malls as well as at government department and community levels, involving the participation of 14,737 individuals.” - Bernama Permanent injunction issued against Kedah MB oMove prohibits repeating of comments about Berjaya founder, company pending disposal of defamation suit Penang holds promotions to attract visa-free tourists GEORGE TOWN: Hotel operators in Penang are intensifying face-to-face and online promotions abroad, especially for China and India citizens, who have been granted visa-free entry into Malaysia. Penang Malaysian Hotel Association (MAH) chairman Tony Goh said besides introducing their hotels and tourism products in the state, they also promoted discount offers for their hotel rooms. “The promotion package by the hotels has been going on for a long time but since the government introduced the visa-free entry, the association and hotel operators are intensifying promotion to attract more tourists from China and India to Penang. “Besides doing it online through the hotel’s social media and website, there are also hotel representatives who go to the country concerned to do face-to-face promotions,” he said. The visa-free entry offered by the government for tourists from some countries is expected to increase tourist arrivals in the country, especially from China, by 20% to 30%. Meanwhile, state Tourism and Creative Economy Committee chairman Wong Hon Wai said the state government is also in discussions with several airlines in China to have more direct flights in Malaysia. “Currently, there are two direct flights from China to Penang and no direct flights from India to the state. We are discussing with several airlines in India to have direct flights to Penang.” Wong said the state government also planned to hold a “roadshow” in China early next year to promote Penang to travel agencies in the republic. “For the roadshow in China, it is a two-pronged approach where we not only promote travels for individuals or small groups but also for large groups with seminar services in Penang because we have several convention centres that can accommodate a large number of people,” he said. Kampung Agong manager Mohamad Ikram Izzat Roslan said he is working with more than 20 travel agencies to promote villages to foreign tourists, especially from China. “We hope that with this visa-free entry, more people will come here,” he said. Kampung Agong, located in Penaga, Kepala Batas, has a traditional village concept that provides a different aura, with beautiful panoramas, green surroundings and unique architectural replicas like some resorts abroad. – Bernama 17 water projects in Pahang completed KUANTAN: A total of 17 projects to address water supply issues in Pahang involving an allocation of almost RM74 million have been completed, said Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. According to him, the projects have been implemented in several districts, including Lipis, Temerloh, Bentong and Raub, Bernama rerported. “The state government is always committed to resolving the water supply issues in Pahang as soon as possible. We will try to expedite it, even though our target is to solve 90% of Pahang’s water supply issues by 2026,” he said in reply to a supplementary question from Andansura Rabu (PN-Beserah) on the matter at the state legislative assembly sitting at Wisma Sri Pahang yesterday. Wan Rosdy said 93 out of the 217 projects under phase one of the Pahang Water Supply Project 2021-2026 have been completed, 37 are currently under construction and 87 are in the preliminary planning stage. █ BY JOSHUA PURUSHOTMAN [email protected] HOT CROP ... A farmer picking ‘Taming Sari’ chillies at a farm in Gua Musang, Kelantan yesterday. The variety fetches a good price on the market, selling at a high of RM24 per kg at the end of last year. – BERNAMAPIC
THURSDAY | DEC 7, 2023 6 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Death sentence of nine inmates commuted to life oFive-member Federal Court bench allows application under Revision of Sentence of Death and Imprisonment for Natural Life Act PUTRAJAYA: A 76-year-old former security guard was among nine individuals whose death sentences were commuted to life imprisonment of 30 years by the Federal Court yesterday. A five-member panel led by Chief Justice Tun Tengku Maimun Tuan Mat allowed Jun Lam @ Chin See Kong’s review application under the Revision of Sentence of Death and Imprisonment for Natural Life (Temporary Jurisdiction of the Federal Court) Act. Tengku Maimun set aside the death sentence imposed on Lam and substituted it with life imprisonment. She also ordered him to serve the sentence from Dec 3, 2006, which was the date of his arrest. DPP Tetralina Ahmed Fauzi did not object to the review application, Bernama reported. The other judges on the panel were Court of Appeal president Tan Sri Abang Iskandar Abang Hashim, Chief Judge of Malaya Tan Sri Mohamad Zabidin Mohd Diah and Federal Court judges Datuk Mary Lim Thiam Suan and Datuk Abu Bakar Jais. Lam, whose Muslim name is Idris Chin Abdullah, has been in prison for 17 years. On Oct 10, 2008, the High Court sentenced him to death after finding him guilty of trafficking 1.5kg of ketamine at the KL International Airport in Sepang on Dec 3, 2006. Lam lost his appeals at the Court of Appeal on Jan 9, 2012, and at the Federal Court on March 20, 2014. The other eight individuals, including two foreign nationals, also had their death sentences commuted to life imprisonment. They were also ordered to serve their sentences from the dates of their arrest. DPP Datuk Yusaini Amir Abdul Karim, P. Sarulatha, Ng Siew Wee and Tetralina did not object to the applications. They are Ghana citizen Emmanuel Yaw Tieku, 60, Liberian national Nobies Weah Ezike, 52, Mohd Zaiham Mislan, 48, Mohamad Che Tam, 62, Faiz Khairudin, 53, Siew Yoke Keong, 56, Wong Hong, 68, and Phung Geok Hoay, 70. The court also ordered Mohd Zaiham to be whipped 12 times. All were sentenced to death for drug trafficking offences. CRIME PREVENTION ... Policemen patrolling Kampung Serongga in Kelantan yesterday after residents in the area were evacuated due to floods. – BERNAMAPIC Tahfiz fire case: Appeal to be heard on Feb 21 PUTRAJAYA: The Federal Court has fixed Feb 21 to hear a 22-year-old man’s appeal against his conviction for the murder of 23 people in a fire at the Darul Quran Ittifaqiyah tahfiz centre in 2017. The man is being detained at the pleasure of the King on the order of the High Court on Aug 17, 2020, after he was found guilty of the crime. He was 16 years old at the time of the incident. His lawyer, Haijan Omar, confirmed the hearing date yesterday. Case management was held yesterday before Federal Court deputy registrar Mahyun Yusof, who fixed the date. The man and another person still at large was charged with causing the death of 23 people at the tahfiz centre at Kampung Datuk Keramat, Wangsa Maju in Kuala Lumpur between 4.15am and 6.45am on Sept 14, 2017. He was charged with 23 counts of murder, each framed under Section 302 of the Penal Code and read together with Section 34 of the same law, which provides for the mandatory death sentence. On Sept 11, the Court of Appeal dismissed his appeal and upheld his conviction and prison sentence. The appellate court also dismissed the prosecution’s appeal against the decision of the High Court in acquitting and discharging another man, also aged 22, for the murder without ordering him to enter his defence. The man was also 16 years old at the time of the incident. No notice of appeal has been filed by the prosecution against the man’s acquittal. Section 97(1) of the Child Act 2001 stipulates that a death sentence shall not be pronounced or recorded against a person convicted of an offence if the person is under the age of 18, and in lieu of the death sentence, as provided under Section 97(2) of the same law, the court shall order the person to be detained at the pleasure of the Yang di-Pertuan Agong. – Bernama Charged over fake vaccination certs MARANG: A private doctor was charged in the Magistrate’s Court yesterday on 10 counts of issuing fake Covid-19 vaccination certificates at his clinic two years ago. Dr Muhamad Reze Rashid, 52, pleaded not guilty to the charges before Magistrate Zur Azureen Zainalkefli. On five of the charges, Muhamad Reze is alleged to have willfully and with intent to defraud, made false records about the vaccination status of individuals between Dec 7 and 23, 2021. He was charged under Section 477A of the Penal Code, which provides imprisonment of up to seven years or a fine, or both. Muhamad Reze was also charged under Section 464 (a) of the Penal Code with five counts of creating false documents during the same period. The court allowed bail of RM25,000 in one surety for all charges and set Jan 17 for mention. – Bernama Three held over killing of senior citizen GEORGE TOWN: Police arrested two men and a woman on Tuesday to facilitate an investigation into the death of a senior citizen who was stabbed 27 times in the parking area of an apartment complex in Jalan Perak. Acting Northeast district police chief Supt V. Saravanan said the three individuals, aged between 29 and 42, who are believed to be close friends of the victim, were arrested at separate locations in Jelutong at about 7.30pm. “Police are investigating the motive for the killing and the three individuals are on remand for three days to facilitate the investigation.” Saravanan also said the investigation was being conducted under Section 302 of the Penal Code. – Bernama Foreigner to be charged over offensive video MALACCA: A Cambodian woman and her son will be charged at the Ayer Keroh Magistrate’s Court today for allegedly saying “Melayu malas” (Malays are lazy) in a video which has been widely viewed on social media. The Malacca police contingent headquarters said in a statement yesterday the 47-year-old woman, who owns a business in Johor Bahru, will be charged under Section 505(c) of the Penal Code for uttering the words with intent to incite a class or community of persons. “Her 22-year-old son will be charged under Section 233 of the Communications and Multimedia Act 1998 for using network facilities to transmit communication deemed to be offensive.” The case was referred to the General Crime and Public Order Unit in the Attorney-General’s Chambers on Tuesday. The woman claimed Cambodians were intelligent and hardworking compared with Malays. However, she ended the video by saying it was just a joke and that she was sorry, followed by another apology video. – Bernama
THURSDAY | DEC 7, 2023 7 Four ‘unusually wealthy’ Thai officials fired BANGKOK: Four Thai officials have been dismissed after authorities found more than two billion baht (RM266 million) in their bank accounts. Corruption is rife in the oMove made after two billion baht found in their bank accounts kingdom, with officials often accused of accepting small bribes and pay-offs, but sums of this magnitude are rare. The two billion baht was discovered in multiple accounts held by three women and a man who work in the Revenue Department in Samut Prakhan province near Bangkok. The National Anti-Corruption Commission (NACC) has referred the case to the Attorney-General’s Office and requested that the Criminal Court for Corruption also investigate. The four were “unusually wealthy”, said NACC assistant secretary-general and deputy spokesman Sornchai Chuwichian. Their listed assets – including their bank deposits – did not match their government incomes, Sornchai said in an NACC statement. None could explain the source of the money, Sornchai said. The man, Danai Damrongchaiyothin, had 1.1 billion baht (RM145 million) in seven accounts, while one of the women held more than 500 million baht (RM65 million) in five accounts. A starting salary for a revenue official is less than 15,000 baht (RM2,100) per month. All four have been dismissed from their government posts, according to the NACC statement. It did not mention whether they had been charged or arrested. – AFP 17 killed in Philippines bus crash MANILA: Seventeen people died and 11 were injured when a passenger bus careered off a road on a “killer curve” and plunged down a mountain in the central Philippines, officials said yesterday. The bus was travelling in Hamtic municipality in Antique province when the crash happened on Tuesday afternoon, said provincial disaster agency head Roderick Train. Seven people were in critical condition in hospital and four others were stable, Train said, describing the section of road as “accident prone”. One Kenyan national was among those killed while a second Kenyan was among those critically injured. Governor Rhodora Cadiao earlier told radio station DZRH there were four Kenyans on board the bus that was carrying mostly residents of Antique. Local police later clarified there were only two. Another body was still being identified. “I call that place ‘killer curve’ ... it was already the second Ceres bus that fell off there,” said Cadiao, referring to the bus company. “With the many number of deaths that road must be abandoned ... and make another road to make that area safe.” The heavily forested ravine was 30m deep, Cadiao said. Train said the bus “fell from a high place”, resulting in many casualties. “Based on the witnesses, it was a mechanical failure. The driver lost control, possible brake failure.” Cadiao visited the hospital where survivors were being treated for their injuries. She promised government assistance for medical and funeral expenses of victims. Train said the search and rescue operation had finished and authorities would now focus on retrieving the bus. – AFP Rescuers conducting a retrieval operation at the crash site in Antique. – REUTERSPIC Yangon hit by fuel shortage YANGON: Myanmar’s commercial hub Yangon is facing a fuel shortage, residents and junta-controlled media said yesterday, with hundreds of vehicles queueing up at dawn in the hope of securing petrol. The state-run Global New Light of Myanmar newspaper said the shortage had begun on Tuesday and was “due to delays in oil delivery from Thilawa Port to filling stations”, without providing further detail. Most of Yangon’s fuel arrives through the port, but the local kyat currency has plunged against the American dollar since the military seized power in 2021, hitting importers’ ability to pay for fuel shipments. Dozens of cars and motorbikes lined up in the early morning in Yangon, AFP correspondents said. In Bago region north of Yangon, some stations were limiting sales to 20 litres per customer, an AFP correspondent said. “We closed for a week because of shortages and just opened this morning,” said an attendant at a petrol pump in Phayargyi, 75km north of Yangon. “Even though we have petrol now, it will run out soon because many cars and motorcycles are coming to us as other stations nearby are closed.” Myanmar’s economy has tanked since the coup, which sparked huge pro-democracy protests that were crushed by a military crackdown. Dozens of “People’s Defence Forces” have since sprung up across the country to fight the junta, with regular clashes across swathes of the country. In late October, an alliance of ethnic minority armed groups launched an offensive against the military across northern Shan state near the border with China – Myanmar’s biggest trade partner. The alliance has captured one key border crossing and blocked roads leading to several others, denying the cash-strapped junta tax and foreign exchange. Last week, fighting in the east briefly blocked another key trade highway to Thailand. – AFP Indonesia search effort focuses on last missing hiker JAKARTA: Indonesian rescuers were searching yesterday for the final hiker who went missing after a volcano eruption that left 22 other people dead, but hopes were fading three days after the disaster. Mount Marapi on the island of Sumatra spewed a 3,000m ash tower – taller than the volcano itself – into the sky on Sunday as 75 people hiked in the area. Hundreds of rescuers have worked for days to find the missing hikers, who have been carried down the mountain in bodybags in an arduous search effort hampered by further eruptions and bad weather that forced workers to intermittently take shelter. “There were many rumours and unclear reports. Let us make it clear, we still don’t know the whereabouts of this one victim,” Padang Search and Rescue Agency head Abdul Malik told reporters. It came after West Sumatra police chief Suharyono, who goes by one name, told reporters on Tuesday that the last hiker was feared dead, which has not been confirmed by the rescue officials on the ground. “Twenty-three people are suspected to have died. “We all prayed they all could be rescued but there was nothing we could do, God and nature had made a decision.” The volcano, which means “Mountain of Fire”, was still billowing a column of smoke into the sky early yesterdau, an AFP journalist said. Fifty-two people were rescued since the eruption. – AFP B R I E F STAIWAN PROBES FREE CHINA TRIPS TAIPEI: Taiwanese prosecutors said yesterday they were investigating five people over accusations they had arranged free trips to China for dozens of voters in a bid to “influence” next month’s elections. Taiwan goes to polls on Jan 13 to elect a new president and a new Parliament. The five people under investigation were among 35 people questioned by prosecutors on Tuesday on suspicion of violating election and anti-infiltration laws. In a statement, prosecutors from Kaohsiung in Taiwan’s south said a man, identified only by his family name of Chou, and four others had been “in contact and received instructions” from Chinese officials in charge of Taiwan affairs to “invite influential local people” to China. – AFP ‘HACKERS MAY HAVE STOLEN LASER DATA’ SEOUL: South Korean police are investigating whether a North Korean hacker group, accused of stealing data from 14 entities, obtained information on defence technology including an anti-aircraft laser, a Seoul police official said yesterday. The probe, which is being carried out in conjunction with the FBI, is trying to determine the extent of the data obtained by the group known as Andariel, said Jeong Jin-ho, who heads a team at the Seoul Metropolitan Police Agency investigating the case. The US Department of the Treasury in 2019 listed Andariel as a North Korean state-sponsored hacking group, focused on conducting malicious cyber operations on foreign businesses, government agencies and the defence industry. – Reuters MANILA NAMES TWO BOMBING SUSPECTS MANILA: Philippine police yesterday named two men suspected of being involved in a deadly blast that killed four people during a Catholic Mass in a southern city at the weekend. Those suspected of orchestrating the attack in Marawi were members of Daulah-Islamiyah Maute, a pro-Islamic State militant group that took control of the city in 2017 and held it through five months of ground offensives and air strikes by the military. The suspects were Kadapi Mimbesa, 35, and Arsani Membisa, whose age was not determined, a police official told reporters. Kadapi has a pending warrant of arrest for kidnapping and illegal possession of explosives while Arsani is wanted for murder, he said. – Reuters
THURSDAY | DEC 7, 2023 8 ‘Earth on verge of five climate tipping points’ PARIS: Humanity faces an “unprecedented” risk from tipping points that could unleash a domino effect of irreversible catastrophes across the planet, researchers warned yesterday. The most comprehensive assessment ever conducted of Earth’s invisible tripwires was released as leaders meet for UN climate talks in Dubai with 2023 set to smash all heat records. While many of the 26 tipping points laid out in the report – such as melting ice sheets – are linked to global warming, other human activities like razing swathes of the Amazon rainforest could also push Earth’s ecosystems to the brink. Five of these are showing signs of tipping – from melting ice sheets threatening catastrophic sea level rise, to mass die-off of tropical coral reefs – the report warned. Some may have already begun to irrecoverably transform. Once the world crosses the threshold for just one tipping point, dealing with the immediate humanitarian disaster could distract attention away from stopping the others, creating a “vicious cycle” of mass hunger, displacement and conflict, the report warned. University of Exeter Earth system scientist and lead author of the report Tim Lenton said these tipping points pose a “threat of a magnitude that is unprecedented for humanity”. But it was not all bad news. The report also highlighted a range of positive tipping points – such as electric vehicles, renewable energy and changing to plant-based diets – that have the potential to swiftly build momentum and tip things back the other way. “Imagine leaning back on a chair to that balance point where a small nudge can make a big difference,” Lenton said. “You could end up sprawled on your back on the floor – or if you’re lucky, back upright.” A key concern is if the melting West Antarctic and Greenland ice sheets collapse. That could raise sea levels 2m by 2100, exposing nearly half a billion people to frequent coastal flooding, the report said. The Greenland ice sheet has been shrinking at such a rate that it might already be too late. “Is it past the tipping point or could it stop shrinking? No one’s quite sure,” Lenton said. The other three tipping points most at risk are dying tropical coral reefs, melting permafrost and an ocean current called the North Atlantic subpolar gyre circulation. Another ocean tipping point is the Atlantic Meridional Overturning Circulation (AMOC), a vast system that regulates the global transfer of heat from the tropics into the northern hemisphere. The new report said it was plausible – though unlikely – that the AMOC would collapse this century. This destabilising change could lead to vast regions getting far less rain, potentially halving the area worldwide where wheat and corn can be grown, it said. “If that goes, there will be global food security crisis and water crisis as major monsoon systems fail in India and West Africa. That will be a humanitarian catastrophe,” Lenton said. – AFP oHumanity faces mass hunger, displacement and conflict, say scientists Four Rohingyas killed in refugee camp shootout DHAKA: Four Rohingya refugees were killed during a gunfight between two insurgent groups in Bangladesh, police said yesterday, in the latest sign of deteriorating security in the country’s overcrowded relief camps. Bangladesh is home to around a million members of the stateless minority, most of whom fled a 2017 military crackdown in Myanmar that is now subject to a UN genocide probe. The dozens of squalid refugee camps housing the Rohingyas have emerged as a battleground between rival armed groups who have used the settlements as staging posts for drug trafficking and human smuggling. Local police chief Shamim Hossain told AFP that an hourlong shootout took place between the Arakan Rohingya Salvation Army (ARSA) and Rohingya Solidarity Organisation (RSO) on Tuesday night. “Four Rohingya refugees were killed and two Rohingyas were seriously injured.” Neither group gave immediate comment on the clash. The RSO has been challenging the larger and more established ARSA for control of the camps since the start of the year, coinciding with a crackdown on ARSA by Bangladeshi security forces. Violence has long been a fact of life for those living in the refugee settlements. Police say more than 60 Rohingya refugees have been killed in Bangladeshi camp clashes this year, including women and children. The United Nations Refugee Agency said Sunday it was “alarmed by the continuing deterioration of security conditions in the camps”. Malnutrition is also widespread, with the UN World Food Programme saying a funding shortfall this year had forced it to cut rations by a third. Those Rohingyas remaining in Myanmar face severe persecution by authorities who deny them citizenship and access to healthcare. The desperate situation both there and in the Bangladeshi camps has prompted thousands of Rohingyas to embark upon dangerous sea trips to Southeast Asian countries to escape. More than 1,000 landed in Indonesia’s Aceh province last month. – AFP French law upholds cows’ right to moo PARIS: Urbanites seeking peace and quiet in the bucolic French countryside will in the future have greater difficulty in taking farmers to court over crowing roosters, mooing cows and stinking pigs after Parliament passed a new law. Farmers carrying out their legitimate traditional tasks will be protected under a new legislation passed on Monday. City dwellers moving to the countryside will no longer be able to take their neighbours to court on account of noises in the dead of night, from rattling tractors or work in the local bakery. Hundreds of conflicts with neighbours over noise and stench have overburdened local courts, which will now have their workload eased. The case of a dairy farmer ordered to pay his neighbours €100,000 (RM504,000) over the noise and smell of his cows made headlines last year. In 2019, a court ruled in favour of the rooster Maurice, which was allowed to continue crowing despite complaints from the neighbours. From now on, all countryside work being conducted legally before new neighbours move in will be allowed to continue. An earlier law was passed in 2021 that aimed to define the so-called “sensory heritage” of the French countryside and to protect it. This includes the noises and smells characteristic of natural areas and farmland. – Bernama B R I E F SHUNDREDS MARCH AGAINST FEMICIDE PRISTINA: Several hundred people gathered in Pristina on Tuesday to protest against the murder of a Kosovo Albanian woman that shocked the country, demanding a tougher policy against perpetrators of gender-based violence. The protesters chanted “down with the patriarchy” and “killing of women should be treated as a national emergency” as they walked through the city centre before stopping in front of a government building. They poured pink paint on the building’s entrance. The protest followed the murder of Liridona Ademaj, 30, a mother of two children who was killed last Wednesday. An investigation revealed that Ademaj’s husband paid a hitman to kill her. The authorities have not yet revealed the motives for the crime. – AFP VENEZUELA, GUYANA TENSIONS RISE GEORGETOWN: Tensions rose between Venezuela and Guyana on Tuesday as Caracas proposed a bill to create a Venezuelan province in a disputed oil-rich region and ordered the state oil company to issue licenses for extracting crude there. Venezuela President Nicolas Maduro proposed at a government meeting that a bill be sent to the National Assembly for the creation of a “Guyana Esequiba” province in a region Guyana has administered for over a century. He also said oil, gas and mining licenses must be issued immediately. Guyanese President Irfaan Ali called Maduro’s statements a “direct threat” against his country, and rejected the measures announced by the Venezuelan leader. – AFP STAYING AFLOAT ... Residents and a dog sitting on makeshift raft as they are evacuated from a flooded area in the Indian city of Chennai following intense rains after Cyclone Michaung made landfall. – AFPPIC
THURSDAY | DEC 7, 2023 9 Israeli forces encircle southern Gaza city oUN official says ‘nowhere and no one is safe’ amid intense fighting GAZA CITY: Israeli forces were encircling southern Gaza’s main city yesterday, battling Hamas fighters through streets and buildings in some of the most intense combat of the two-month war. The focus of the conflict has shifted into the besieged territory’s south following fierce fighting and bombardment that reduced much of the north to rubble and forced nearly two million people to flee their homes. Israeli tanks, armoured personnel carriers and bulldozers were seen on Tuesday near the southern Gaza city of Khan Yunis, forcing already displaced civilians to pack up and flee again, witnesses told AFP. “Our forces are now encircling the Khan Yunis area in the southern Gaza Strip,” Israel’s army chief Herzi Halevi said. “We have secured many Hamas strongholds in the northern Gaza Strip, and now we are operating against its strongholds in the south.” The fighting on Tuesday was “the most intense day since the beginning of the ground operation” in late October, the army’s Southern Command chief Maj-Gen Yaron Finkelman said. The latest toll from the Hamas-run government media office said 16,248 people in Gaza, most of them women and children, had been killed. Israel has vowed to destroy Hamas and free 138 hostages still held after scores were freed during a short-lived truce. Several Hamas commanders were killed in an air strike near the Indonesia Hospital, the Israeli military said early yesterday on X. Sources in Hamas and Islamic Jihad, another Palestinian group, told AFP their fighters were battling Israeli troops early yesterday in a bid to prevent them from breaking into Khan Yunis and surrounding areas. According to the Hamas-run government media office, dozens of people were killed and injured in heavy strikes on areas east of Khan Yunis. Meanwhile, areas in the central and northern Gaza Strip were still coming under bombardment, according to Hamas. The Hamas-run Health Ministry said air strikes on the Nuseirat refugee camp in central Gaza killed six people and injured 14 others. Israel had previously told civilians in the north of the densely populated Gaza Strip to seek shelter in the south of the territory, with many fleeing to Khan Yunis believing it would be safer. As the war expands, Israel has told people to move even further south, sparking “panic, fear and anxiety”, according to Philippe Lazzarini, head of the United Nations agency for Palestinian refugees UNRWA. People were being pushed into an area that is less than one-third of the Gaza Strip, with roads to the south clogged, he said. International aid groups have condemned the succession of orders to flee from one area to another, saying that civilians were running out of options. “Nowhere is safe in Gaza,” said UN humanitarian chief Martin Griffiths. “Not hospital, not shelters, not refugee camps. No one is safe.” An estimated 1.9 million people are displaced in Gaza – roughly three-quarters of the population, according to UN figures. – AFP US senators square off at Ukraine war briefing WASHINGTON: Several Republican senators walked out of a classified briefing on Ukraine on Tuesday as it descended into a row over the border crisis, after President Volodymyr Zelensky unexpectedly cancelled a videolink appearance to appeal for continued US funding. Zelensky had been due to update the senators on the latest developments in the conflict with Russia and press for them to support a procedural vote on an emergency aid package that includes more than US$60 billion (RM280 billion) for Kyiv. The cash has been held up for weeks by a dispute in Congress, as the White House has warned that existing funds will run out by year end and that Russian President Vladimir Putin could win the war if lawmakers fail to act. Senate Majority Leader Chuck Schumer announced that Zelensky had been prevented from taking part by a “last minute” hiccup, but he pressed ahead with the briefing anyway – only for the proceedings to turn into a war of words. Utah’s Mitt Romney left early, confirming that “a number” of his Republican colleagues had followed suit, angry that they heard nothing on their demand that Ukraine aid be coupled with action on the migrant crisis at the US-Mexico border. “The briefers were saying things we’ve all known, we can read about in any newspaper, had been said publicly,” Romney told reporters. “There’s nothing new in what they’re describing, and Republicans are saying that there’s support for Ukraine, but there has to be security of our border.” Congress is more divided over backing for Ukraine than it has been at any time during the nearly two-year conflict, with the country fast exhausting the military aid provided by the United States so far. Senate Republicans are making their support for extra Ukraine funding contingent on President Joe Biden’s Democrats accepting reforms of the asylum system and tightened border security – measures the Democrats have already rejected. “Republicans are just walking out of the briefing because the people there are not willing to actually discuss what it takes to get a deal done,” Romney said. US Treasury Secretary Janet Yellen said the situation in Ukraine is dire. “We can hold ourselves responsible for Ukraine’s defeat if we don’t manage to get this funding to Ukraine,” she said on Tuesday. “Ukraine is just running out of money.” – AFP Peru court orders release of former president Fujimori LIMA: Peru’s Constitutional Court on Tuesday ordered the release of former president Alberto Fujimori, 85, who was serving a 25-year prison sentence for crimes against humanity committed on his watch. A court ruling seen by AFP ordered the “immediate” release under supervision of Fujimori, who was president from 1990 to 2000. The ruling reinstates an earlier pardon. Fujimori has been jailed since 2009 over massacres committed by army death squads in 1991 and 1992 in which 25 people, including a child, were killed in supposed anti-terrorist operations. In February, he was admitted to hospital suffering from an irregular heartbeat. He suffers recurrent respiratory, neurological and hypertension problems and has had tongue cancer. Tuesday’s ruling reinstated a pardon granted to the ex-president for humanitarian reasons in 2017 but revoked by the Supreme Court two years later. Last year, the Constitutional Court again ordered his release on humanitarian grounds, but the Inter-American Court of Human Rights urged Peru not to free him, and Lima agreed. Fujimori was impeached in November 2000 on grounds of “moral incapacity” and was accused of corruption. The previous day he had fled to Japan, where his parents were from, and resigned by fax. He later went to Chile, from where he was extradited in 2007. Tuesday’s ruling cannot be appealed. Fujimori was serving his sentence at the small Barbadillo jail at the barracks of the special operations police in eastern Lima. There he grows flowers, paints and receives family visits. – AFP B R I E F STURKIYE ARRESTS ALLEGED UK CRIME BOSS ANKARA: Turkiye said yesterday it had captured the leader of a British gang involved in drug smuggling, illegal gun trade and robbery in an operation in Istanbul. Interior Minister Ali Yerlikaya said Shaun Monaghan, leader of a gang operating in northeast England, was being sought by an Interpol red notice. Monaghan arrived in Turkiye in October and the Interpol notice was published on Tuesday, Yerlikaya said. Turkish police had found Monaghan to be living in Istanbul’s Fatih district and captured him yesterday, he said. Monaghan’s gang was involved in cocaine and heroin distribution as well as armed robbery, Yerlikaya said on X. – Reuters UAE EXTRADITES BRITON WANTED FOR FRAUD DUBAI: The United Arab Emirates yesterday extradited a British hedge fund trader accused of massive fraud and money laundering to Denmark to face charges, the official WAM news agency reported. Sanjay Shah, who was arrested in Dubai in June last year, is wanted over an alleged €1.7 billion (RM8.6 billion) scam. “The extradition confirms the UAE’s determination to collaborate with international partners in the pursuit of international justice, and to strengthen the integrity of the international financial system,” WAM said. Sanjay was accused of running a scheme for three years starting in 2012 in which foreign firms pretended to own shares in Danish companies and claimed tax refunds. – AFP Palestinian children queuing to collect water in the southern Gaza city of Rafah. – REUTERSPIC
10 THURSDAY | DEC 7, 2023 @thesundaily FOLLOW ON TWITTER Malaysian Paper Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ Recognising power within I N the intricate dance of life, the most profound choreography occurs within the confines of our minds. Thoughts, perception and judgement – these are the elements that construct the reality we experience daily. They are powerful tools, and understanding their influence can unlock a world of potential within each of us. Our thoughts are the architects of our inner world, crafting the narratives that play out in our minds. They are the brushstrokes that paint our perceptions, subtly yet significantly influencing our view of life. Positive thoughts can be a well-spring of inspiration and hope, lifting us to new heights. Conversely, negative thoughts can cast shadows, obscuring our paths with doubt and fear. Recognising the power of our thoughts is the first step in mastering the art of mental resilience. Perception is the lens through which we view our world, a subjective interpretation moulded by the thoughts we harbour. It shapes how we interpret events, interactions and even our self-image. By altering our thoughts, we can shift our perception, changing how we understand and engage with the world around us. This shift can transform challenges into opportunities and adversity into learning experiences. Judgement is often perceived as a reflex, a snap decision or an opinion. However, its true power lies in discernment – the ability to make considered decisions or come to sensible conclusions. Mindful judgement involves a pause, a moment of reflection to understand the full picture before drawing conclusions. It is about being open to new information and perspectives, allowing us to make more informed and empathetic decisions. To harness these inner powers, we must first become conscious of them. Mindfulness and meditation are gateways to this awareness, offering a space to observe and understand our thought patterns. From this place of understanding, we can begin to guide our thoughts, perceptions and judgements in more constructive directions. The journey to self-mastery is ongoing, a continuous process of learning and growth. It involves embracing the power of our thoughts, challenging our perceptions and practising mindful judgement. As we navigate this journey, we discover that the most significant changes occur within us. Our external circumstances may not always be within our control but our internal responses are. In conclusion, the realms of thoughts, perception and judgement are more than just mental processes – they are the tools with which we sculpt our reality. By understanding and mastering these tools, we unlock the power to shape our lives from within. Let us embrace this inner power, for it holds the key to not only our fulfilment but also our contribution to the world around us. Remember, the greatest journey begins within, and it is within each of us that the power to change our world resides. The writer is a Certified Mental Health and Awareness practitioner specialising in Narcissistic Abuse Recovery. Comments: [email protected] “Recognising the power of our thoughts is the first step in mastering the art of mental resilience. By altering our thoughts, we can shift our perception, changing how we understand and engage with the world around us. Mindfulness and meditation are gateways to harness our inner powers. – REUTERSPIC Take steps to mitigate construction risks IT is heart-rending to learn that three construction workers lost their lives, and two sustained severe injuries following the collapse of a warehouse under construction in Batu Maung, Penang on Nov 28. The victims, all Bangladeshi nationals, were caught in the aftermath of this devastating incident. A prompt stop-work notice was issued by the authorities, and an ongoing investigation is underway to determine the cause of the incident. According to reports, the investigation will be conducted under Section 15 of the Occupational Safety and Health Act 1994, which pertains to the employer’s responsibility for the safety and health of his employees. The warehouse, a three-story complex owned by a major international logistics company, was intended to be a fast-track project that commenced at the end of 2022. Originally slated for completion by the end of the current year, progress had fallen behind, with just over half of the project finished after nearly a year of work. The collapse occurred specifically in the construction phase of the roof frame. The longevity of buildings relies on meticulous design and construction to ensure lasting structural integrity over the years. A roof collapse serves as an indication that there were issues in the building’s construction. Determining responsibility is challenging due to the intricacies surrounding such incidents. Therefore, a comprehensive investigation is essential to pinpoint the causes. The construction process of any building is crucial, with numerous essential steps to follow, including adhering to specific timelines for concrete drying, among other considerations. Furthermore, unanticipated additional loads not accounted for in the design process can contribute to structural weaknesses in a building. Often overlooked is the impact of wind force on the structural stability of a building. Improper construction of beams or their incorrect installation can result in accidents. Consequently, it is imperative to have a proficient team of geology specialists, civil engineers, contractors and project managers working on building projects to avert unfortunate incidents. Incidents are typically not attributable to a single cause but rather the accumulation of multiple factors. Wong Soo Kan Petaling Jaya LETTERS [email protected] MIND THE MIND BY DR PRAVEENA RAJENDRA
11 THURSDAY | DEC 7, 2023 customer experiences and ensuring the sustained relevance of restaurants. Supporting the food industry in this digital transformation is crucial, and certain delivery services are equipped to lead this shift via the necessary tools at their disposal. Past advertising methods are being replaced by digital marketing applications, making it easier for restaurant operators to market themselves, even for those without prior digital marketing knowledge. In the past, tracking data and outcomes was challenging, making it difficult to determine the number of customers who visited the stores and made subsequent orders, but with digitalisation, tracking has been simplified. Traditionally, restaurants and large chains would allocate significant funds for data analysis. However, with the assistance of digital marketing, they can now precisely determine their expenditures and evaluate the sales generated from these marketing activities. This enables them to enhance their entrepreneurial skills. Beyond pandemic lifeline Amid the challenges posed by the pandemic, some restaurants had to adapt to digitalisation and experienced significant differences in their businesses. Several restaurants strategically leveraged digitalisation to reach customers beyond the usual coverage area and saw a significant surge in sales and heightened brand recognition. Digitalisation became the backbone of their businesses. Similarly, restaurants that faced adversity during the lockdown and were forced to close turned to digital platforms for assistance to ensure the continuity of their business. The adaptability facilitated by digital platforms allowed these businesses to resume operations as the economy recovered, showcasing their resilience in the face of challenges. Furthermore, the advent of food delivery platforms also contributed to the rise of food and beverage operators that exist purely for the food delivery market. For them, partnerships with food delivery platforms lead to substantial growth. Some food delivery platforms offer exclusive partnerships with food operators, enabling them to enjoy priority placement on platforms, dedicated marketing support and access to specialised promotional opportunities. By leveraging digital tools, businesses can thrive in the evolving landscape of the food industry. The digital transformation facilitated by food delivery platforms is reshaping the restaurant landscape. The benefits are evident, from increased reach to data-driven insights and enhanced customer experiences. As we navigate the ever-evolving food industry, embracing digitalisation is not just a choice but a strategic imperative for sustained growth and resilience. The writer is the senior commercial director at foodpanda Malaysia. Comments: [email protected] Digital lifeline for food industry I N the rapidly evolving food industry landscape, digitalisation has become more than just a trend – it is now a necessity for survival and growth. The surge in technological advancements has propelled restaurants into a new era, reshaping the way they operate and connect with customers. Digitalisation is about leveraging technology to enhance customer experience, streamline operations and drive business growth. The benefits of this transformative shift are extensive, ranging from increased efficiency to data-driven insights that enable personalised customer interactions. In the last few years, we have witnessed a profound impact on communities as restaurants adapted to these changes. The food industry is inherently competitive, and the digital shift provides a competitive edge. The evolution of the food industry has resulted in several fundamental changes. Among them is the rise of delivery services, enabling restaurants to expand their reach and increase revenue. Additionally, data-driven insights have become invaluable, allowing businesses to tailor their offerings to suit customer preferences. These components put small business owners on a level playing field with mammoth chains. The community impact is substantial, with local businesses gaining visibility beyond physical constraints. Even small roadside vendors can now offer their food to a wide range of customers. Upscaling businesses Embracing delivery services has not only expanded revenue streams but also eliminated geographical barriers. The convenience of ordering from anywhere has become a customer expectation, providing businesses with a broader reach. Delivery services enhance visibility, giving even the smallest establishments a chance to showcase their offerings. A roadside stall will have the same opportunity as a restaurant chain via a simple application. With just a few taps, customers can discover the most obscure vendors within seconds. Additionally, the integration of technology has brought about data-driven insights, enabling personalised experiences through customer preference analysis. This technology not only tailors to menus and marketing strategies but also enhances customers’ overall satisfaction. The rise of contactless dining, payment and reservations, coupled with the use of platforms for marketing, has further enhanced convenience and customer engagement, promoting loyalty and attracting new patrons. Digitalisation is not merely about efficiency, it is a holistic approach aimed at creating memorable COMMENT by Jay Ar Juan “The digital transformation facilitated by food delivery platforms is reshaping the food industry landscape. The benefits are evident, from increased reach to data-driven insights and enhanced customer experiences. Embracing fulfilling retirement journey by prioritising well-being RETIREES are fortunate if they and their spouses are healthy, fit and mobile, and have sufficient savings or pensions to cover their daily needs. Retirees are “rich” in time. The challenge is using this priceless commodity beneficently. Retirees should keep themselves busy. The following five-fold engagement approach offers a roadmap for retirees seeking purpose and fulfilment: 1. Family bonding: Retirees’ social circle may shrink but their family circle expands. They should engage with family members as often as possible, fostering connections with in-laws and grandchildren. Initiating and maintaining regular activities, such as chitchats, exchanging gifts and relishing the preparation of favourite dishes, not only will solidify familial ties but also offer abundant reasons for celebration. Embracing the presence of younger family members, especially in-laws and grandchildren, brings a refreshing spectrum to the family dynamic, infusing it with the exuberance of youth. Additionally, retirees can take the initiative to visit relatives, extending gestures of warmth and reinforcing the importance of familial bonds. 2. Faith engagement: Engaging with faith transcends mere spiritual practice, it becomes a profound journey of self-discovery and community connection during the retirement phase. Regular attendance at worship services and active participation in prayer sessions form the foundation of this spiritual nourishment. Participation in initiatives, such as soup kitchens where they contribute to serving the community’s needs, becomes a manifestation of their commitment to compassionate service. 3. Cognitive functions. Stimulating the mind through reading, thinking and writing play a pivotal role in maintaining mental well-being for retirees. Engaging in these activities serves as a powerful deterrent against cognitive decline and conditions such as dementia. Retirees can document their rich life experiences in a memoir or explore new subjects of interest. Sharing knowledge gained from reading and engaging in mental exercises contributes to personal development. 4. Maintaining friendships. The digital age has presented retirees with a valuable tool to bridge distances and maintain connections with friends who may no longer be physically accessible. Although some old friends may be limited by age or mobility issues, technology has become a conduit for sustaining these cherished relationships. Applications and group chats provide retirees with virtual spaces where they can effortlessly share experiences, reminisce about the past and stay updated on each other’s lives. The beauty of these online platforms lies in their ability to transcend physical barriers, allowing retirees to nurture friendships with former classmates, work colleagues and hobby buddies regardless of geographical locations. 5. Fun and recreation. Prioritising recreational activities becomes a cornerstone of retirees’ well-rounded lifestyles, promoting relaxation and physical exercise. A stroll within the confines of their home compound, through the local neighbourhood or in scenic parks not only offers a serene escape but also serves as a fundamental aspect of maintaining a healthy lifestyle. The therapeutic benefits of these walks extend beyond physical health, contributing significantly to mental well-being and stress reduction. For those who are still fit and agile, the recreational possibilities widens considerably. Engaging in favourite sports and games, whether individually or with like-minded peers, becomes a delightful way to infuse physical activity with enjoyment. Exploring new, less physically demanding activities adds a layer of novelty to their routine, sparking a sense of adventure and curiosity. An exciting avenue for exploration would be joining tours, locally and overseas, to experience different cultures, traditional crafts and cuisines. In essence, life after retirement can be immensely satisfying. While retirees may have concluded their working lives, embracing these engaging activities ensures that they need not retire from living life to the fullest. Liong Kam Chong Seremban LETTERS [email protected] The convenience of ordering from anywhere has become a customer expectation, providing businesses with a broader reach and an opportunity to increase revenue. – REUTERSPIC
PROPERTY PROPERTY THURSDAY | DEC 7, 2023 12 Local housing market shows resilience KUALA LUMPUR: The property market showed a consistent improvement in 2023, especially in the second half, over the past few years, signalling a recovery from the Covid-19 crisis. In the primary housing market, the number of new launches improved quarter-on-quarter with the launch of 6,900 units in the third quarter of 2023 (Q3‘23) versus 4,797 in the Q2’23, said the National Property Information Centre (Napic). According to its latest Q3 statistics, sales of new launches reached 37.6% compared with 24.7% in the Q2’23. The Real Estate and Housing Developers’ Association (Rehda) Malaysia in its Property Industry Survey for the First Half (1H’23) and Market Outlook for 2H’23 and 1H’24 also showed that new launches and sales performance fared better in the 1H’23 compared to the last four years, with 14,392 units launched and 11,273 units sold. The survey also noted that the improved performance is expected to overflow into the 1H’24 although there oNumber of new launches and sales improve in third quarter of 2023, survey shows recovery to carry into first half of next year ISP breaks ground on Kapar centralised labour quarters KUALA LUMPUR: The ISP Group of Companies (ISP), a real estate developer and investment holding group, broke ground on its Centralised Labour Quarters (CLQ) or Purpose-Built Workers Accommodation (PBWA) project in Kapar, Selangor. The groundbreaking was officiated by Ng Sze Han, Member of the Selangor State Executive Council (Exco), Investment, Trade and Mobility, and Dr Quah Perng Fei, Selangor State Assemblyman for Bandar Baru Klang, who was representing Ng Suee Lim, Member of the Selangor State Executive Council (Exco), Local Government, New Village Development and Tourism. The 10-storey PBWA has a maximum capacity of 3,780 beds and is scheduled for completion by Q4’24. PBWA Kapar is being developed in compliance with the Worker’s Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446). The 2.05 acre project will feature 210 furnished units equipped with basic amenities such as fans and light fixtures, beds and mattresses, as well as lockers and drawers for convenience. ISP has partnered with Westlite Accommodation, the specialised worker accommodation unit of SGXlisted Centurion Corporation Ltd and an established owner/operator of PBWAs in Malaysia and Singapore, to provide design consultancy and operational management services for its pipeline of worker accommodation property assets in Malaysia. Sze Han said: “The manufacturing and construction industries in Selangor are rapidly growing, with each now accounting for one-third of the national figures. Both these sectors have created one of the highest employment opportunities in the country with the increased demand for migrant workers resulting in a shortage of suitable accommodation that meets the Act 446 guidelines. From left: Westlite Accommodation Sdn Bhd country head Alfred Lee, Centurion Corporation Ltd COO Kelvin Teo, Sze Han, Eric Ng, Bandar Baru Klang state assemblyman Dr Quah Perng Fei and Land Management Division chief assistant district officer Mohd Shahrizal Mohd Salleh. would be some headwinds due to factors like elevated interest rates, consumer preference to rent, rising material costs and higher cost of living. The overall broad property market, which includes all subsegments of real estate, saw more than 100,000 transactions worth RM57.15 billion in the third quarter, a 3.7% rise in volume and a 22.6% rise in ringgit value compared to the same quarter a year ago. Better situation with ‘sick projects’, overhang units The Local Government Development Ministry (KPKT) took steps to address abandoned private housing projects as they are a financial burden for buyers besides robbing them of their dream to move into their own homes. Through a special task force, KPKT has revived 256 projects worth RM23.37 billion as of August 2023 - a relief to many buyers. As for overhang units, Napic recorded 25,311 completed unsold houses worth RM17.4 billion in the Q3’23. This represents a 3.7% fall in volume and a 4.9% drop in ringgit value compared to the previous quarter. PropertyGuru country manager Sheldon Fernandez said while the government and developers are taking measures to reduce overhang units, efforts are needed to prevent the recurrence of sick projects. “It requires a multi-faceted approach that involves both the government and developers. Some preventive measures that could be considered include having stricter regulations, improved planning and risk management, and a build-thensell model,“ said Fernandez. Developers could use Napic’s recent launch of its Open Transactions Data to understand market trends and consumer behaviour and be guided in their future planning. Homebuyers, renters and investors could also be helped to make informed decisions as they would be guided to understand price trends in different areas and negotiate for better deals. Sustainability Many developers are introducing sustainable elements in their new developments to gain a competitive advantage due to a convergence of different factors involving global trends, government initiatives, consumer demand, and cost considerations. According to PropertyGuru’s recent consumer survey, 71% of respondents do consider climate change when making property decisions, and 62% are receptive to green homes. “Several banks are also introducing sustainable finance solutions to assist developers in this shift to environmentally sustainable properties. “This sustainability trend will likely continue into 2024, influencing both supply and demand,“ said Fernandez. Outlook for 2024 Rehda Malaysia said rising optimism from developers and homebuyers signals a recovering residential market given the sluggish performance of this sub-segment over the past years. “Things are looking up for 2024. We have faith in the federal government to take further initiatives to further secure industry players’ confidence,“ it said. Fernandez of PropertyGuru Malaysia said a shift towards rental properties and an increased focus on sustainability will be the two key trends in 2024. “It is essential to remember that the property market is dynamic and influenced by many factors. Staying informed of the market and adapting to short-term changes are crucial, aside from transparency and access to information,” Fernandez said. – Bernama “So, we are pleased to welcome corporations such as ISP and Westlite who are committed to being part of our long-term strategy to provide quality accommodation for migrant workers in Selangor.” ISP founder and group executive director Eric Ng commented: “ISP is proud to partner with established PBWA owner-operator Westlite Accommodation to develop our first PBWA in Selangor. We recognise that centralised, purpose-built worker housing are essential infrastructure for the manufacturing, retail and warehousing industry such as in Selangor, which rely on a substantial migrant workforce and we are committed to creating a sustainable living environment for these migrant workers. “We aim to help provide employers and business owners with a safe, secure, and efficient solution to their migrant worker management and accommodation needs.” PBWA Kapar is designed to be selfsufficient with facilities such as a minimart, clinic, barber, mobile shop and self-service laundry to be available within as well as a dedicated centralised kitchen and dining hall on each floor, gym and recreational room, among others. It will also feature physical and digital safety and security measures such as facial recognition and CCTV monitoring, dormitory management and turnstile system, as well as adequate security guards on duty. Tiong Nam Logistics’ BRIX KLIA to usher in new era of co-living SEPANG: Tiong Nam Logistics Holdings Bhd, a renowned name in the logistics industry and real estate, is set to reshape the hospitality landscape with the upcoming opening of BRIX KLIA, an innovative co-living space poised to revolutionise the way travellers experience simplicity and comfort. Nestled in the vibrant district of Sepang, Selangor, BRIX KLIA By Pinetree is conveniently situated just a short 15- minute drive away from the Kuala Lumpur International Airport (KLIA). Derived from the word ‘bricks,’ BRIX KLIA embraces the idea that every individual element, like a brick in a building, contributes to a larger, harmonious whole. This exceptional concept combines the essence of a hotel, co-working space, and comprehensive facilities to create a vibrant and diverse community hub. BRIX KLIA transcends conventional lodging, emerging as a multifaceted haven where business and leisure harmoniously coexist. With five distinct room types and 87 rooms, the CoLiving themed accommodation space ensures that every traveller’s accommodation needs are thoughtfully met. The hotel offers a plethora of conveniences such as gym, cafeteria, entertainment room, community kitchen, convenience stores and a laundromat. Tiong Nam Logistics Holdings Bhd group hotel & hospitality senior general manager Johnny Lau said, “BRIX KLIA represents a significant milestone for Tiong Nam as we venture into the realm of co-living accommodations. We believe that BRIX KLIA will set a new benchmark in Sepang for travel excellence encompassing comfort, convenience, and the essence of community living. Our goal is to provide a fuss-free experience to travellers passing through KLIA.” BRIX KLIA lies close to several points of interest such as Xiamen University, Bangi Wonderland, Kota Seriemas Golf Club, DPULZE Shopping Centre and IOI City Mall. Gamuda Land to develop three-star hotel in Gamuda Cove SEPANG: Gamuda Bhd’s property division Gamuda Land had allocated an investment of up to RM150 million to develop a three-star hotel at Gamuda Cove slated to be opened in the first quarter of 2026 (Q1’26). Gamuda Land CEO Chu Wai Lune said the hotel will be managed by Dusit Hotels and Resorts, the hotel arm of Dusit International, one of Thailand’s leading hotel and property development companies. “The 280 rooms hotel will be operating under Dusit’s distinctive locally focused lifestyle brand ASAI Hotels, which promises to uniquely link curious travellers with authentic local experiences. “ASAI Gamuda Cove hotel will enjoy the distinction of being the first hotel signed under Dusit’s expanded ASAI Tropical model, specifically tailored for properties located in areas of outstanding natural beauty,” he told reporters after signing the hotel management agreement in conjunction with the ground breaking ceremony last week. Chu said expanding into the hotel line is part of the company’s strategy to complete its ecosystem by providing a new service to its township. Gamuda Land chief commercial officer Eusoffe Chua said Gamuda Cove which spans 619.17ha, is a mindfully planned township development offering exciting ecofriendly tourism activities including adventure and water parks. – Bernama
THURSDAY | DEC 7, 2023 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: [email protected] Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: [email protected] SC eyes 2024 launch of mechanism for automatic ACE-to-Main Market listing transfers KUALA LUMPUR: The Securities Commission Malaysia (SC) is seeking to introduce a streamlined transfer mechanism that will enable qualifying ACE Market companies to transfer to the Main Market beginning in 2024, said its chairman, Datuk Seri Dr Awang Adek Hussin. He said SC together with Bursa Malaysia is working to improve efficiency in the public markets to facilitate a startup’s initial public offering (IPO), with measures such as reducing time-to-market for companies seeking to list on the stock exchange. “Details of the proposed automatic transfer framework will be announced later this month. The introduction of a new simplified and accelerated transfer process will facilitate a seamless transfer of listings to promote sizeable and quality ACE Market companies to the Main Market. “By being in the Main Market, it will open up opportunities for foreign investors to participate. This should encourage greater foreign participation in our capital market,” Awang Adek said in his speech at the Malaysia Venture Forum 2023 yesterday. He said capital markets play an important role in enabling easier access to funding for startups and micro, small and medium enterprises thus, the SC has taken proactive steps to facilitate fundraising for businesses, particularly at the early stage of financing. Awang Adek said SC and Bursa Malaysia will continue to facilitate exits for promising companies, especially in the tech sector, and recent capital market initiatives aimed at supporting IPO-ready companies are expected to have a positive impact. The SC is also looking into introducing a small offering exemption in the Capital Markets and Services Act next year, facilitating a clear safe harbour for offerings of a certain size to sophisticated investors. – Bernama Algeria rolls out welcome mat for Malaysian investors KUALA LUMPUR: Malaysia is expected to register higher tourist arrivals next year, surpassing pre-pandemic levels, driven by projected recovery for the local tourism industry and weak ringgit. “For the first half of 2023, in comparison to our competitors in the Southeast Asia region, Malaysia welcomed 9.16 million international tourist arrivals, placing us second after our neighbour Thailand. “More recently, the statistics for the third quarter (Q3) of the year recorded a total of 14 million international tourists to Malaysia between January to September 2023,” said Tourism Malaysia (promotion) deputy director-general Datuk Musa Yusof during the 16th Bursa-Hong Leong Investment Bank Stratum Focus Series, “Tourism: Welcoming A New Dawn” yesterday. Citing the World Tourism Organisation, he noted that the Asia and the Pacific region reached 61% of the pre-pandemic level for international tourist arrivals between January and July of this year, which is relatively low compared to the rest of the region due to slower reopening of international borders for several countries. “It is expected that our region will reach recovery to pre-pandemic levels in 2024 onwards,” he said. He shared that aviation players have also reached out to them and are positive that the local tourism industry will recover from 2024 onwards. Musa added that details on the tourism target for 2024 is expected to be announced by Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing. On weak ringgit, Musa opined that it will not only attract tourists to visit Malaysia but also boost domestic spending as it would entice tourists to spend more. “Its not to say that Malaysia is cheap but it is value for money (for tourists). People coming in, they can (contribute to domestic spending and the economy),” he added. Touching on Bruneian tourists, he pointed out that despite only having a population of about 400,000, they have made around 1.7 million trips to Malaysia in 2019. He added that border tourism will trend upwards driven by better infrastructure, namely the Pan Borneo Highway in Sarawak that is expected to open by year-end. In terms of the strategy for next year, he said that it will aim to attract Indonesian and Vietnamese tourists. “We have a focused targeted market. We are looking at certain countries in Asean, for example Indonesia and Vietnam markets. We are still looking at (other Asean) markets as well but there are some markets that we hope to trigger (in order to entice the tourists) to come in,” he said. “The first (meetings, incentives, conferences and exhibitions) MICE group which entered into Malaysia when we first opened up our borders came from Vietnam. There’s a lot of multinational companies in Vietnam, so we need to tap on these companies that are coming into Malaysia. That’s why we have an office in Vietnam, we are talking to them”. He added that they are also looking into promoting Malaysia to tourists from the Middle East due to their high spending capabilities. “The top five per capita income that are spending a lot in Malaysia are from the Middle Eastern market, from Saudi Arabia, Kuwait, Iran, UAE and so on,” he said. PETALING JAYA: Algeria is encouraging Malaysian businesses to seize the trade and investment potential within the nation’s rapidly developing landscape in industries such as cement, iron and steel, fertiliser, chemical products, agriculture, as well as tourism. The ambassador of Algeria to Malaysia Abdelhafid Bounour (pix) pointed out that there is a favourable investment climate in the country, including tax incentives and government support for foreign investors to set up their own businesses or on a joint-venture basis with local companies. To attract foreign investors, he said, the country has come up with a number of legal reforms such as tax incentives, legislative stability, lease of land for up to 10 years, guarantees for the transfer of funds and less bureaucracy. “Since the embassy was set up here in Malaysia in 1995, we have developed relations in all fields between Algeria and Malaysia. And bilateral trade is very important. We are going to sign an agreement with Matrade today and with the Chamber of Commerce next week. We are also talking with various Malaysian companies such as in pharmaceuticals and wood. I have to do my best to develop relationships and cooperation with Malaysia. This relationship is very important for us,” he told SunBiz during his visit to theSun’s office yesterday. Abdelhafid who was posted as Algerian ambassador to Malaysia six months ago is confident that with the launch of the direct flight from Algeria to Malaysia by Air Algérie in June 2024, there will be enhanced trade relationship between the two countries. This north African country is home to seven distinct Unesco World Heritage sites. Last year, trade between Malaysia and Algeria stood at about US$600 million (RM2.8 billion) mainly in food, chemical products, and fertilisers from Algeria, while Malaysia exports electrical, electronic equipment, halal food, as well as wood among others. According to the World Bank, hydrocarbon production and export revenues remain central in Algeria’s economy. The hydrocarbon sector accounted for 19% of gross domestic product, 93% of product exports, and 38% of budget revenues between 2016 and 2021. “Algeria aspires to diversify its economy to vary the country’s sources of revenues and improve employment prospects, particularly for young people, given the country’s demographic profile, with an unemployment rate in 2021 standing at 12.7% of the total labour force and 31.9% among young people (aged 15 to 24),” the World Bank said. In the past two decades, the hydrocarbon boom had allowed Algeria to make advances in economic and human development. The country nearly cleared its multilateral debt in 2008, invested in infrastructure projects supporting economic growth, and introduced redistributive social policies that alleviated poverty and significantly improved human development indicators. Non-monetary poverty dropped between 2013 and 2019 amid improvements in education, health, and living standards. “Algeria, like other oil-exporting countries across the Mena region, will need to shift toward a more diversified economy to lift job prospects, a crucial task given the country’s young demographic profile,” the World Bank said. Since 2020, the government has taken steps to boost foreign and domestic investment by issuing a new Hydrocarbon Law, partly lifting restrictions on the foreign ownership of domestic firms, adopting a new Investment Law, and working to issue a new Money and Credit Law as well as a Public-Private Partnership Law. Meanwhile, the September 2021 Government Action Plan has made the transition to a private sector-led growth and job creation model a developmental priority, notably by arguing for rationalising public spending, reducing imports, boosting nonhydrocarbon exports, and for significant improvements to the business environment, including reforming public banks and stateowned enterprises. Hong Leong Investment Bank group managing director and CEO Lee Jim Leng (left) and Musa at the event. █ BY GLORIA HARRY BEATTY [email protected] █ BY HAYATUN RAZAK [email protected] oAmbassador says investment climate is favourable with rapidly developing industrial landscape, especially in cement, iron and steel, chemicals, agriculture and tourism Tourist arrivals next year expected to surpass pre-pandemic levels
BIZ & FINANCE BIZ & FINANCE THURSDAY | DEC 7, 2023 14 Contact theSun's Sales & Marketing team to book your advertising space. Malaysian Paper 03-7784 6688 [email protected] Advertise with us on Chinese New Year Special on JAN 26, 2024 Chinese New Year SPECIAL Let’s welcome the Year of the Dragon with us! In the Chinese culture, the dragon represents good luck, strength and health, and those are what we wish for you, while you check out our Chinese New Year supplement, to let yourself be aware of the current and upcoming festive sales, deals and promotions. PUBLICATION DATE 26 JANUARY, 2024 (Friday) BOOKING DEADLINE 12 JANUARY, 2024 (Friday) TNB finalising tie-ups, feasibility studies on RE oPower company also exploring groundbreaking co-firing projects involving hydrogen and ammonia KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is finalising partnerships and conducting feasibility studies for the development of renewable energy (RE) zones for large-scale solar (LSS) and hybrid floating solar photovoltaic (PV) totalling 2,500 MW in capacity. The company is also exploring groundbreaking co-firing projects involving hydrogen and ammonia, signalling a clear commitment to innovation and sustainability. TNB president and CEO Datuk Seri Baharin Din said the company is fast-tracking these key projects under the National Energy Transition Roadmap (NETR) which is in line with its Energy Transition Plan (ETP), spanning the entire electricity value chain. “These initiatives represent tangible steps in our journey towards fulfilling our sustainability commitments and vision, all the while fostering robust business growth,” he said in a statement. Furthermore, TNB is actively formulating a robust business case for hydrogen production, encompassing both export and domestic usage, with an anticipated completion timeline of two years. Green hydrogen will play a prominent role in its co-firing initiatives under TNB Power Generation Sdn Bhd (TNB Genco). Next-generation gas-fired power plants equipped with hydrogen-ready technology will be introduced starting in 2030 leading to electricity production characterised by significantly lower carbon emissions. During Baharin’s keynote address at the 24th Conference of the Electricity Power Supply Industry (CEPSI) held recently in China, he said TNB had solidified its pledge to spearhead Malaysia’s energy transition by championing transformative renewable energy projects. He underscored the significance of the Asean-China collaboration in the relentless pursuit of net zero goals. “Together, both powerhouses aren’t simply embracing net zero goals but leading the charge in navigating the global energy transition, forging monumental strides towards a low-carbon future, and catalysing substantial economic growth,” he said. He also said that TNB’s commitment to supporting Malaysia’s position as the regional data centre hub, introducing the Green Lane Pathway – a gamechanger tailored for the data centre market, streamlining electricity supply and implementation timelines significantly. It is an exclusive initiative tailored to the needs of the data centre market, offering expedited electricity supply options and reducing the implementation time from 36-48 months to 12 months. Baharin also highlighted TNB’s commitment to empowering the Asean Power Grid and expressed anticipation for China’s support in RE projects, foreseeing immense growth, job creation and economic development across the region. Baharin said Asean and China are undeniably prominent players on the global energy stage, both playing pivotal roles in the ongoing energy transition. “The immense potential for growth and collaboration between these two regions holds the key to achieving our shared objective of advancing towards a low-carbon, sustainable future,” he added. The CEPSI 2023, a biennial event, serves as the flagship gathering of the Association of the Electricity Supply Industry of East Asia and the Western Pacific. This year, CEPSI 2023 witnessed the participation of approximately 2,500 representatives from member countries, highlighting its significance as a premier platform for industry collaboration and knowledge exchange. – Bernama BPAM gets SC grant for digital solutions to boost capital market KUALA LUMPUR: Bond Pricing Agency Malaysia Sdn Bhd (BPAM) has been awarded a grant from the Securities Commission Malaysia (SC) under the Digital Innovation Fund (DIGID) to empower it to continue its efforts in pioneering digital solutions that enhance the landscape of the capital market, creating new opportunities for both investors and market participants. The DIGID was established to co-fund groundbreaking projects that showcase the application of technology to create novel and competitive offerings within the Malaysian capital market. “We are honoured to receive this grant from the SC which will enable us to further advance our initiatives in digital innovation within the capital market. This recognition underscores our dedication to staying at the forefront of technological advancements and ultimately contributing to the growth and efficiency of the Malaysian capital market,“ said BPAM CEO and executive director Meor Amri Meor Ayob. The DIGID grant was awarded based on BPAM’s cutting edge development of the Sustainability Taxonomy Platform which aims to address data fragmentation arising from the variable nature of climate disclosure requirements in the Malaysian capital market related to ESG. By leveraging the latest technology, BPAM’s Sustainability Taxonomy Platform will enable financial institutions to evaluate, analyse, compare, and report their sustainability assessments with precision in line with local and regional sustainable metric taxonomy classifications. “This recognition by the SC goes beyond our established role in providing comprehensive bonds valuation and index data. It marks a significant milestone in our journey towards integrating innovative data-driven tools for sustainability taxonomy in the financial market. It also highlights the SC’s seriousness and commitment to supporting sustainability initiatives within our financial ecosystem,” said BPAM data and content management head Mohammad Izzad Halimi. IILM reissues US$790m short-term sukūk across three tenors KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM), an international organisation that develops and issues short-term syariahcompliant financial instruments, has reissued a total of US$790 million (RM3.7 billion) short-term sukūk across three different tenors of one, three, and sixmonth respectively. The three series were priced competitively at 5.45% for US$250 million for one-month tenor; 5.61% for US$290 million for three-month tenor; and 5.54% for US$250 million for six-month tenor. With yesterday’s sukūk reissuance, the IILM has successfully issued a total US$100.94 billion through 234 series in total issuances since the organisation’s inception in 2010, and inaugural sukūk issuance in 2013. In its 12th and final auction for 2023, the IILM’s sukūk reissuance yesterday witnessed a competitive tender among Islamic primary dealers and investors across the GCC markets as well as Asia, with a strong orderbook in excess of US$1.99 billion, representing an average bid-to-cover ratio of 252%. IILM CEO Dr Umar Oseni said that with the conclusion of yesterday’s issuance, the IILM has achieved year-to-date cumulative issuances totalling US$11.52 billion across 36 US dollar-denominated short-term sukūk series and crossing the US$100 billion mark in total issuances since the organisation’s inception. Furthermore, the IILM’s sukūk issuances during the year-to-date period accounts for approximately 20% of total global US dollar sukūk issuances. Despite the prevailing volatile geopolitical climate and uncertainties in the market that we witnessed throughout the year, the IILM continues to explore innovative solutions to address the industry’s evolving shariahcompliant liquidity management needs,” said Umar. The IILM recorded several new investors during the year, from different countries and regions in the Middle East, Asia, Africa, and Europe, as the IILM sukūk gains traction among different types of investors across the globe, with banks leading the pack, followed by government entities, pension funds, asset managers, as well as private banks.
BIZ & FINANCE BIZ & FINANCE THURSDAY | DEC 7, 2023 15 January-September approved investments total RM225b KUALA LUMPUR: Malaysia has attracted approved investments worth RM225 billion in services, manufacturing, and primary sectors in the January-September 2023 period, up 6.6% from the RM211 billion investments approved in the same period last year. The Malaysian Investment Development Authority (Mida) said the services sector accounted for RM117.7 billion, followed by the manufacturing sector at RM99.8 billion and primary sector at RM7.5 billion. The 3,949 approved investment projects are set to unlock 89,495 new job opportunities, showcasing Malaysia’s resilience on the back of prevailing global operational uncertainties across various industries, it said in a statement yesterday. Foreign direct investment (FDI) accounted for 55.9%, or RM125.7 billion, of the total approved investments, while domestic direct investment (DDI), which surged 45.2% year-onyear, contributed 44.1% or RM99.3 billion. Mida said the Netherlands emerged as the leading source of FDI, contributing RM35.0 billion, while other notable sources included Singapore (RM20.4 billion), the United States (RM18.9 billion), China (RM11.6 billion), and Japan (RM11.2 billion). “This diversity in the investors’ base highlights Malaysia’s universal appeal as a strategic hub, particularly for the Asean region,” it said. Five states which recorded significant investment values are Kuala Lumpur (RM48.9 billion), Penang (RM44.9 billion), Selangor (RM41.6 billion), Kedah (RM22.6 billion) and Johor (RM20 billion). Commenting on the performance, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the growth in approved investments is a testament to Malaysia’s continued attractiveness as an investment destination. It also reflected to the country’s collaborative whole-of-government and the whole-of-nation efforts oMida: Foreign sources account for 55.9% or RM125.7b, domestic investors contribute 44.1% or RM99.3b UMW bags deal to service IOI’s Jenbacher biogas engines PETALING JAYA: UMW Group’s wholly owned subsidiary, UMW Industrial Power Services Sdn Bhd (UIPS), an authorised distributor of Innio’s Jenbacher engines in Malaysia, signed a longterm service agreement (LTSA) with IOI Corporation Bhd’s plantation business valued at RM50 million. The LTSA will see UIPS providing maintenance services for seven units of Jenbacher biogas engines installed at IOI Plantation Services Sdn Bhd’s seven palm oil mills in Lahad Datu and Sandakan in Sabah. The seven Jenbacher biogas engines have a total generation capacity of 5,523kW of power. The power generated will be utilised for the operations at the mills, living quarters as well as for auxiliary usage. The LTSA will cover two life cycles of the seven biogas engines and engine block replacement. The scope of work includes services and maintenance for the engines for a duration of 16 years. The scheduled maintenance is aimed at achieving an optimum capacity of 7,000 operating hours annually. The LTSA was signed by UIPS general manager Roslan Yahaya and IOI Plantation Services general manager, mills and engineering (Sabah) Raymond Herbertson at a ceremony held in Sandakan. At the event, seven LTSAs were signed with Ladang Sabah Mill, Pamol Sabah Mill, Mayvin Mill, Morisem Mill, Leepang Mill, Syarimo Mill and Unico Desa Mill, all owned and operated by IOI Plantation Services Sdn Bhd, which currently operates 10 mills in Sabah. Herbertson said the strategic LTSA with UIPS will ensure optimal condition of IOI’s biogas engines as it progressively moves forward to achieve its net-zero greenhouse gas emissions for Scope 1, 2 and 3 by 2040. UMW Holdings Bhd officer-in-charge Megat Shahrul Azmir said, “We would like to extend our appreciation to IOI Plantation Services Sdn Bhd for their support and confidence in our products and services. We will ensure that the biogas engines are well maintained to ensure they will continue to be productive throughout their lifespan.” He added, “The Jenbacher technology that UIPS offers effectively generates clean energy and heat from biowaste, making a significant impact on reducing CO2 emissions. Power plants using Jenbacher engines operating on natural gas or renewable energy sources can achieve power conversion efficiencies of up to a remarkable 48.7%. “Additionally, when operating in combined heat and power configuration, the overall efficiency could increase up to an impressive 95%. This will help our customers in maximising their returns, whilst reducing their carbon footprint and waste.” MSM expects to deliver sweet performance in FY24 KUALA LUMPUR: MSM Malaysia Holdings Bhd expects a better financial year ending Dec 31, 2024 (FY24). Group CEO Syed Feizal Syed Mohammad said the sugar refiner is taking steps to reduce its losses while the industry anticipates to turn around soon. “Last year was challenging with all the input costs of what I would like to call a perfect storm. “Of course, we are unable to adjust certain prices. It requires time to adjust. We are making adjustments now,” he told reporters after launching its latest addition to the Gula Perai line-up, called Gula Super. MSM reported a reduced net loss of RM36.06 million for the third quarter ending Sept 30, 2023 (Q3’23) compared with RM73 million in Q3’22, attributable to an enhanced margin resulting from a higher average selling price, reduced freight costs, and improved capacity utilisation. In Q3’23, MSM’s revenue surged to RM806.72 million, up from RM668.13 million in the same period last year. On ceiling price, Syed Feizal said MSM and other sugar producers have been engaging with the government on the issue. The ceiling price is set by the government and has remained unchanged without subsidy over the last 10 years, he added. Amid high input costs due to increases in raw sugar cost, high freight and natural gas costs as well as the weakening ringgit, the local sugar industry remained resilient, Syed Feizal noted. On Gula Super, which has been available in the market since May, he said the group is targeting to produce 10,000 tonnes per month. The production of Gula Super has been rising from 1,000 tonnes in May to between 5,000 and 6,000 tonnes per month currently. Syed Feizal said MSM has been exporting Gula Super to 17 countries mainly in the Asia-Pacific, the Middle East region and Pakistan. He added that MSM targets to export Gula Super to neighbouring countries, especially Singapore due to its proximity to the company’s manufacturing plant in Johor. Currently, MSM produces the Gula Prai brand in its refinery in Prai, Penang, with an annual production capacity of 1.05 million tonnes of refined sugar, and in Tanjung Langsat, Johor, with one million tonnes. PIAM backs Miti initiative for M’sian standard on motor vehicle repair PETALING JAYA: Persatuan Insurans Am Malaysia (PIAM) has come in support of the Ministry of Investment, Trade and Industry’s (Miti) proactive initiative in development of Malaysian Standard – Motor Vehicle Aftermarket Smash Repair Requirements (JSM MS). Anticipated to be officially launched by Jabatan Standard Malaysia (JSM) in early 2024, the JSM MS is poised to elevate the standards and professionalism of motor vehicle smash repair workshops. PIAM, in a statement yesterday, praised the collaborative approach taken by Miti in the development of JSM MS with input and participation from key stakeholders in the motor repair ecosystem. The JSM MS covers a broad spectrum of smash repair workshop activities from vehicle body repair to refinishing and sets forth the structural, resources and process requirements for workshops engaged in motor vehicle accident repair. PIAM said it looks forward to continued collaboration in the effort to ensure the safety and satisfaction of customers as well as promoting the development and sustainability of the motor insurance and repair ecosystem. It added that it is committed in actively contributing to this initiative by closely monitoring the important regulatory development and reviewing its implications on the motor vehicle accident repair ecosystem and the way forward. Axiata proceeds with structural transformation of Indonesian units PETALING JAYA: Axiata Group Bhd is driving forward with the structural transformation of its Indonesian subsidiaries, PT XL Axiata Tbk (XL Axiata) and PT Link Net Tbk (Link Net), to accelerate the strategic shift towards becoming a ServeCo and a FibreCo. This strategic move aims to bolster the position in optimising the opportunities within Indonesia’s underpenetrated fixed broadband (FBB) and fixed mobile convergence (FMC) markets. XL Axiata and Link Net have reached non-binding agreements, encompassing the transfer of Link Net’s FBB business including its 750,000 customers to XL Axiata and the roll out of an additional two million new homes passed by Link Net, which will enable XL Axiata to deliver FBB and FMC services for its growing customers and the wider Indonesian community. Upon completion of the additional two million rollout, Link Net will enable nearly 6.5 million access to home passes as a leading wholesale FibreCo. XL Axiata and Link Net will proceed to set out a binding agreement for the terms, which will be carried out in compliance with prevailing regulations, including that of the Financial Services Authority related to affiliated transactions and material transactions. The joint agreement marks an important milestone for Axiata as it moves closer to achieving strategic structural transformation of XL Axiata and Link Net in Indonesia. The construction of substantial new homes passed by Link Net to support XL Axiata underscores its pivotal role as a leading FibreCo. Furthermore, the transfer of Link Net customers to XL Axiata will fortify XL Axiata’s position as a prominent ServeCo, fuelling the growth ambition of FBB and FMC offerings throughout Indonesia. in attracting, facilitating and retaining investments, while enhancing the ease of doing business under the Madani Economy framework, he said. “Investment inflows from countries such as the Netherlands, Singapore, the United States, China, and Japan reflect the type of high-tech, strategic investments that Malaysia is targeting from global players. But this is no time for complacency. “Miti and its agency Mida will continue to position Malaysia as a highly viable and stable destination to strategically capture more inflows from the redesigning of supply chains in the global investment landscape, in line with our industrial transformation as stipulated in the New Industrial Master Plan 2030,” he said. Mida said that as of November 2023, there are a total of 1,428 projects with proposed investments of RM72.3 billion in its pipeline. Of these proposed investments, a total of 1,352 projects are from the selected services sector (RM31.8 billion), while 76 projects are from the manufacturing sector (RM40.5 billion), all of which fall under Mida’s purview. Mida said it is also actively negotiating a total amount of RM161.6 billion in high-potential investment leads. – Bernama From Left: MSM Group COO Hasni Ahmad, Koperasi Permodalan Felda Group CEO Sakinah Salleh, Syed Feizal, Aeon BiG (M) Sdn Bhd managing director Sheik Farouk Sheik Mohamed, and Nabila Huda during the launch.
COMMUNITY COMMUNITY 16 THURSDAY | DEC 7, 2023 PETALING JAYA: The Malaysian AIDS Foundation (MAF) has raised RM1.8 million at its Red Ribbon Gala 2023 for its effort to eradicate HIV/AIDS in the country. The gala was held in conjunction with MAF’s 30th anniversary and World AIDS Day. The black-tie event at Sunway Resort Hotel was attended by over 400 guests including royalties, government officials, public and corporate figures, celebrities and other personalities. Among them were Raja Muda of Selangor Tengku Amir Shah Sultan Sharafuddin Idris Shah, Sunway Group founder and chairman Tan Sri Sir Jeffrey Cheah, MAF chairman Prof Datuk Dr Adeeba Kamarulzaman and MAF patron Datin Paduka Marina Mahathir. Proceeds from the gala will be used for MAF’s ongoing programmes to provide access to treatment for lowincome and marginalised people living with HIV (PLHIV). The funds will play a direct role in supporting essential HIV treatment programmes for underserved individuals living with HIV. This contribution will be channelled through the Medicine Assistance Scheme, guaranteeing that focused assistance reaches those most in need. Among the generous top donors are Karex Bhd, Berjaya Corporation Bhd, Pertama Digital Bhd, Majlis Perwakilan Penduduk Wilayah Persekutuan Bandar Tun Razak and Pemandu Associates. Additionally, Perkeso made a significant direct contribution to the Medicine Assistance Scheme. Support by Perkeso was part of a collaboration framework that includes a comprehensive disability management initiative, prevention, treatment and Return-to-Work programme for PLHIV, which aligns with MAF’s workplace policy advocacy. Prime Minister Datuk Seri Anwar Ibrahim was represented by his political secretary Datuk Azman Abidin. In a speech delivered by Azman, Anwar voiced strong support for ending workplace discrimination against PLHIV. “My administration stands firmly behind MAF’s ambition to promote the legislation of HIV/AIDS workplace protection law, an effort that was also jointly promoted by the Human Resources Ministry,” he said. “People living with HIV should be allowed to pursue careers and build their own lives without being burdened by prejudice and discrimination.” “In the meantime, I urge all employers in Malaysia to re-evaluate their hiring standard and other related human resource practices that may have unknowingly discriminated against From left: Dapat Vista CEO Joshua Smith, Berjaya Corporation Bhd senior general manager, operations/treasury Ching ChPerkeso representative Dr Edrin Nazri Abdul Rasib, Pemandu Associates joint managing director and partner Larvin RenoFunds will be directed towards programme that supports second-line medication for underprivileged people living with HIV MAF raises RM1.8m AF raises RM1.8m at Red Ribbon Gala t Red Ribbon Gala Addeba (second from lFrom left: Tengku Amir Shah, Jamilah, MAF & Malaysian AIDS Council executive director Jasmin Jalil, Cheah, Adeeba and Larvin.
COMMUNITY COMMUNITY 17 THURSDAY | DEC 7, 2023 People Living with HIV.” MAF chairman Prof Datuk Adeeba Kamarulzaman spoke on the need to establish a legal and policy framework dedicated to safeguarding the human rights of key populations. “Human rights and HIV are closely intertwined. A lack of respect for human rights fuels the spread and worsens the impact of the disease. “This is evidenced in the disproportionate incidence and spread of the disease among key populations at higher risk,” she said. “Punitive approaches towards them only fuel stigma and hatred against these populations, pushing them further into hiding and away from services to prevent, treat, and mitigate the impact of HIV. “As the chair of the Drug Policy Reform Programme, I strongly advocate a more compassionate approach to key populations, starting with decriminalising drug use. “Instead of forced institutional rehabilitation, evidence-based treatment options in the community should be implemented.” MAF patron Datin Paduka Marina Mahathir stressed that stigma and discrimination have a more significant impact on PLHIV than the virus itself. “With four decades of historical strides in science and progress, eradicating AIDS is not a distant dream but an achievable reality. “The key tool in curbing the spread of HIV is a lifelong medication for those infected. “Unfortunately, some individuals lack awareness on how to protect themselves and others from HIV. “Compounding this issue, social stigma and discrimination have a more profound impact on those living with the condition than the virus itself. “It is our responsibility to proactively engage in spreading HIV awareness, particularly in the crucial battle against stigma and discrimination,” she said. hun Keat, Karex Bhd CEO Goh Miah Kiat, Cheah, MAF Sarawak Branch patron Datuk Amar Jamilah Anu, Marina, Adeeba, ngasamy and Azman. eft) says punitive approaches only fuel stigma.
BIZ & FINANCE BIZ & FINANCE THURSDAY | DEC 7, 2023 18 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper Australia’s economy slows to a crawl in third quarter oReal GDP inches 0.2% higher in July-September from Q2, consumer spending surprisingly weak SYDNEY: Australia’s economy barely grew in the third quarter as exports flagged and households – reeling from a surge in mortgage payments – were reluctant to spend, suggesting interest rate increases were working to restrain demand. Marking an eighth straight quarter of growth, albeit its slowest in a year, real gross domestic product (GDP) inched 0.2% higher in July-September from the previous quarter. That was short of forecasts of 0.4% and a result that bolsters the case for the Reserve Bank of Australia (RBA) to no longer need to tighten. Annual GDP growth stood at 2.1%, little changed from the previous quarter, the data from the Australian Bureau of Statistics showed yesterday. “Australia’s economy hit the wall in the September quarter,” said Andrew Hanlan, an economist at Westpac, adding it was surprising to see just how weak consumer spending was during the quarter. “The intense headwinds of high inflation, sharply higher interest and additional tax obligations are having a significant impact, leading to a sharp decline in real household disposable income.” Indeed household spending was flat quarter on quarter and has barely grown for four quarters in a row, its worst stretch since the global financial crisis. Income tax paid jumped 23% from a year ago after the expiry of a tax offset scheme and mortgage payments surged 71% as more people came off fixed-rate mortgages onto higher variable rates. That pushed the household savings ratio to drop further to 1.1%, its lowest level since 2007. The slowdown is seen as a necessary consequence of monetary tightening by the RBA so that inflation can be tamed back to its 2-3% target range. Inflation was 4.9% in October. The central bank on Tuesday opted to stand pat to allow more time to assess the impact of a whopping 425 basis points jump in interest rates since May last year. Gareth Aird, head of Australian economics at Commonwealth Bank of Australia, said there was a clear risk that real GDP growth could turn negative in the fourth quarter. He added that he believes rates have peaked and the easing cycle will start in the third quarter next year. “A month ago the risks to our call were skewed towards rate cuts starting at a later date. But the run of both domestic and international data over the past month suggests the risks are now more evenly balanced.” Net exports subtracted 0.6 percentage point from GDP as prices for some commodity exports fell. – Reuters NVIDIA CEO IN TOWN ... Jensen Huang attending a media roundtable meeting in Singapore yesterday. The chip-making giant’s CEO says Nvidia is in talks with Singapore about potential big investments and working with the city-state to help develop its own large language model, Sealion. – REUTERSPIC China blue-chip stocks, yuan drop after Moody’s move SHANGHAI: China’s blue-chip stocks slumped to an almost fiveyear trough yesterday while the yuan currency extended losses, as markets grappled with Moody’s cut to China’s credit outlook at a time of growing worries about the economy’s stuttering recovery. On Tuesday, the rating agency issued a downgrade warning on China’s A1 sovereign credit rating, the fifth highest level on its ratings scale, saying costs to bail out local governments and state firms and control its property crisis would weigh on the world’s second-largest economy. Moody’s followed up its China move with changes to its outlooks on 18 Chinese corporates to negative yesterday. China stocks opened down with the CSI300 Index touching its lowest level since Feb. 2019, before recouping earlier losses. It closed up 0.2%, with the Shanghai Composite Index down by 0.1%. The cost of insuring China’s sovereign debt against a default rose to its highest since midNovember on Tuesday following the Moody’s decision. However, yield on China’s 10-year government bond rose only a touch yesterday. “The actual investment implication is quite limited – partly because the foreign ownership of Chinese government bond is quite low,” said Tai Hui, APAC chief market strategist at JPMorgan Asset Management. Responding to questions on Moody’s cut during a regular press briefing yesterday, China’s foreign ministry said the country is confident and capable of achieving stable, long-term development. The fundamentals of China’s economy have not changed and China is capable of deepening reform and addressing the challenges it faces, Wang Wenbin, a foreign ministry spokesperson, told a regular press briefing. In the currency market, China’s yuan slipped against the dollar yesterday even as major stateowned banks continued their efforts to stabilise the currency. The central bank, the People’s Bank of China (PBOC), extended its monthslong trend of setting daily guidance fix at levels stronger than market projections, which traders and analysts have widely interpreted as an official attempt to keep the currency stable. Yesterday, the PBOC set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1140 per dollar prior to market opening, 13 pips weaker than the previous fix of 7.1127. But it was 336 pips firmer than Reuters estimate of 7.1476. – Reuters CNOOC, Vitol among firms shortlisted for Shell Singapore assets SINGAPORE: Shell has shortlisted at least four companies including state-run China National Offshore Oil Corp (CNOOC) and top global energy trader Vitol as bidders for its Singapore refinery assets, sources with knowledge of the matter said. Two privately controlled Chinese chemical producers – Eversun Holdings in Fujian province and Shandong provincebased Befar Group – were also shortlisted, sources said. The companies have been asked to submit formal bids by the end of February, two of the sources said. Two sources also said Shell aims to close a transaction by the end of 2024. The assets include a 237,000 barrels per day (bpd) refinery and a one million tonne per year (tpy) ethylene plant on Singapore’s Bukom island. Shell announced a strategic review of the assets in June and sources have previously said that Goldman Sachs has been hired to manage a potential sale. Reuters spoke with six sources for this article. All declined to be identified as the deal discussions were confidential. It was not clear how much Shell is seeking for the assets. A Shell spokesperson said that following the company’s strategic review “divestment is our priority focus now.” The spokesperson declined to comment on potential suitors for the assets or a timeline for the sale. Goldman Sachs declined to comment. CNOOC, Vitol, Befar and Eversun did not respond to requests for comment. When Shell’s Bukom facility opened in 1961 it was Singapore’s first refinery. A buyer of the assets on Bukom and Jurong islands would gain a foothold in Asia’s main oil trading hub but would also face competition from newer refineries in China and elsewhere. The buyer would also have to contend with an expected sharp rise in Singapore’s carbon tax in 2024 that would add to the costs of running the plants. – Reuters Rakuten Group to sell 15% of bank unit TOKYO: Japan’s Rakuten Group said yesterday it plans to sell a large stake in Rakuten Bank to overseas investors, its latest fundraising effort as it grapples with heavy debt and losses at its mobile network unit. The planned sale of 25.5 million shares is equivalent to just under 15% of the online bank, according to LSEG data, and is worth around ¥70 billion (RM2.2 billion) at yesterday’s closing price. The price of the shares will be determined after a book building period yesterday and today, Rakuten Bank said in a separate statement. The e-commerce and financial services group said it would use the proceeds to repay bonds early as it was committed to reducing interest-bearing debt. Hit by spiralling costs to build out its mobile network, it has almost ¥800 billion in bond redemptions due before the end of 2025. The unit’s troubles have also resulted in Rakuten logging 13 consecutive quarters of operating losses. – Reuters B R I E F SBAT WRITES DOWN £25B IN VALUE OF SOME US BRANDS LONDON: British American Tobacco (BAT) said it would take a hit of around £25 billion (RM147 billion) as it writes down the value of some US cigarette brands, acknowledging yesterday that its traditional market has no long-term future. BAT also pointed to economic challenges in the US, where some inflation-weary consumers are downgrading to cheaper brands, and the rise of illicit disposable vapes putting pressure on its US cigarette division. These factors contributed to the around £25 billion non-cash adjusting impairment charge relating to some US cigarette brands, BAT said. – Reuters AUSTRALIA’S PERPETUAL REJECTS A$3.1B OFFER SYDNEY: Australian fund manager Perpetual yesterday rejected a A$3.1 billion (RM9.5 billion) takeover offer from its largest shareholder, diversified investor Washington H Soul Pattinson (WHSP), saying the proposal undervalued its business. WHSP has a 9.9% stake in Perpetual. Its proposal came hours after Perpetual announced that it was looking at splitting off its corporate trust and wealth management businesses from its core asset management division. The indicative non-binding scrip bid values Perpetual at A$27 a share, – Reuters
BIZ & FINANCE BIZ & FINANCE THURSDAY | DEC 7, 2023 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shalll not be liable or responsible for any consequences resulting from usage of the information. FOLLOWING strong core earnings growth of 15.1% YoY recorded in 3QFY23, the momentum is expected to be sustainable riding on normalised commodity and freight costs. Recap, the key input costs have been stabilised over the last three quarters, despite sugar cost remaining elevated due to supply shortage. That said, we expect margin to stabilise over the next quarter against the backdrop of reducing costs and Able Global Bhd’s (AGB) diverse pool of suppliers. Recap, AGB has completed its first maiden exports for filled milk products in July 2023 to the United States. We gather that inflationary pressures has dampened consumers’ spending power following the aggressive hikes made by the Federal Open Market Committee (FOMC) in July 2023 to raise interest rate to 5.25%- 5.50% in July 2023. Hence, targeted customer groups are more inclined to seek for affordable options and this will benefit AGB, mainly due to its lower price point product offerings, which were proven by its repeat orders from key clients and newly secured orders specifically for the filled milk products. The group has been seeking export approval for full cream dairy products from the Mexican authorities since its first announcement in March CY23. The company has been actively engaging with local consultants in Mexico after the submission of necessary documents to Mexico’s authorities after the initial query. We understand that there are concerns over the raw material source, which has been delaying the application. Nonetheless, the company is cautiously optimistic of the progress underpinned by its efforts to expedite the approval process to meet the pre-requisite thresholds. That said, we believe the license is likely to be obtained by early of 2HCY24, if not in end-2HCY24. We maintain Buy on AGB with an unchanged target price of RM1.55/share based on SOP valuation method. - (Dec 6, 2023) MAGNI-TECH Industries Bhd’s (Magni) 2QFY24 revenue fell 16.2% YoY to RM287.6m, as both garment (-15.6% YoY) and packaging (- 22.1% YoY) segment saw a decline in sales. We mainly attribute the lower garment segment sales to weaker exports to China, given the continuous slowdown in China. 2QFY24 core net profit fell by 13.7% YoY to RM21.7m, mainly due to lower sales from both garment and packaging segments. Magni’s 1HFY24 core net profit of RM50.1m was in-line with expectations, accounting for 47% of our full-year forecasts. We are still positive on Magni’s outlook, as we believe that increasing awareness for health, sports and wellness will continue to drive the global athleisure market, which should result in a rise in demand for sportswear. We also see Magni’s current valuation as attractive, as it is trading below its average 5-year PER of 8x. Magni declared a second interim dividend of 2.2sen (1QFY23: 2.3 sen), bringing the YTD dividend declared to 5 sen. This translates to a payout ratio of 39.8% or a dividend yield of 2.6%. We foresee Magni posting stronger earnings in 2HFY24, driven by stocking up activities from its major customer in anticipation of the year end festive season and the resumption in orders following the ease in inventory glut. In addition, the growing awareness in health and sports will continue to drive sportswear growth while being supported by the Paris Olympics that is slated to be held next year. In addition, we understand that Magni will continue to focus on its ongoing cost optimisation initiatives (ie better resource allocation and solar panels) to support its margins. All told, we maintain our Outperform call on Magni, with an unchanged SOTP of RM2.30.- (Dec 6, 2023) LOAN application data from Bank Negara Malaysia (BNM) shows that buying interest on property remains encouraging. Loan application for purchase of property grew by +23% yoy to RM54b in October 2023 after encouraging growth of +15.7% yoy in September 2023. Cumulatively, loan application for purchase of property in 10MCY23 was higher at RM512b (+4.4% yoy). We see that the stronger loan application is positive to the sector as it indicates stronger buying interest on property. In line with higher loan application in October 2023, approved loan was higher at RM23.9b (+15.9% yoy) in October 2023. On monthly basis, total approved loan was higher (+9.3% mom), mainly helped by higher percentage of total approved loan over total applied loan of 44.3% in October 2023 against 40% in September 2023. Cumulatively, 10M2023 total approved loan was higher at RM224.8b (+8.5% yoy). The higher approved loan indicates that stronger property sales, which should in turn support earnings growth of property developers in the near term. Looking ahead, our economist expects BNM to maintain OPR at 3% in 2024. The expectation of unchanged OPR should continue to support recovery of property sector. We remain POSITIVE on the property sector as its outlook is underpinned by the improving overhang situation in residential and serviced apartments. Our top picks for the sector are Mah Sing Group (BUY, TP: RM0.99) and Matrix Concepts (BUY, TP: RM1.86) as we think that property developers that focus on affordable home should see robust new sales. We also like Sunway (BUY, TP: RM2.25) due to improving outlook for Iskandar Malaysia while listing of Sunway Healthcare by 2027 should provide catalyst. - (Dec 6, 2023) FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.742 4.608 4.598 1 Australian Dollar 3.133 3.009 2.993 1 Brunei Dollar 3.537 3.436 3.428 1 Canadian Dollar 3.489 3.396 3.384 1 Euro 5.129 4.963 4.943 1 New Zealand Dollar 2.925 2.818 2.802 1 Papua N Guinea Kina N/A N/A N/A 1 Singapore Dollar 3.537 3.436 3.428 1 Sterling Pound 5.983 5.797 5.777 1 Swiss Franc 5.406 5.284 5.269 100 UAE Dirham 130.720 123.970 123.770 100 Bangladesh Taka 4.395 4.109 3.909 100 Chinese Renminbi 66.840 64.030 N/A 100 Danish Krone 70.500 64.890 64.690 100 Hongkong Dollar 61.340 58.300 58.100 100 Indian Rupee 5.790 5.440 5.240 100 Indonesian Rupiah 0.032 0.029 0.024 100 Japanese Yen 3.227 3.125 3.115 100 New Taiwan Dollar 16.100 N/A N/A 100 Norwegian Krone 44.600 41.030 40.830 100 Pakistan Rupee 1.700 1.590 1.390 100 Philippine Peso 8.680 8.180 7.980 100 Qatar Riyal 131.580 124.910 124.710 100 Saudi Riyal 127.930 121.440 121.240 100 South Africa Rand 25.970 23.450 23.250 100 Sri Lanka Rupee 1.490 1.370 1.170 100 Thai Baht 14.060 12.470 12.070 Exchange Rates Source: Malayan Banking Bhd/Bernama Ringgit lower against US dollar for second day in a row KUALA LUMPUR: The ringgit depreciated against the US dollar for the second consecutive day yesterday due to lack of demand as the US Dollar Index (DXY) continued to strengthen. At 6pm, the ringgit decreased to 4.6665/6700 against the greenback from Tuesday’s close of 4.6610/6660. SPI Asset Management managing partner Stephen Innes said the ringgit was weaker today following broader US dollar trend, which has seen the DXY recover above the key 104.00 level. “Although the United States (US) Federal Reserve (Fed) rate cuts are widely expected next year and could weigh on US dollar, markets are starting to think the 125-basis point cut is too extreme. So traders are less likely to sell the dollar until the data confirms the lower Fed glide path,” he told Bernama. He said the coming weeks would bring clarity on the macro and Fed policy path. “Key events include US unemployment and nonfarm payrolls data, US consumer price index, the Bank of England meeting, and the Federal Open Market Committee meeting, where the committee will revise the Summary of Economic Projections, including the Fed Funds rate dot plot for 2024 to 2026,” he said. Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said, “If the price manages to break below 4.6350, it could fall to the 4.5750 region in a few days. On the other hand, if it breaks above 4.6900, it could rise to the 4.7500 region in a few days.” At the close, the ringgit was traded higher vis-a-vis the euro to 5.0356/0394 from 5.0483/0537 at Tuesday’s close, was higher against the British pound at 5.8793/8837 from 5.8873/8936, and improved against the Japanese yen to 3.1672/1700 from 3.1692/1729 previously. Heineken Malaysia bags UN award for Water Resilience KUALA LUMPUR: Heineken Malaysia Bhd (Heineken) has been recognised for its exceptional leadership in building resilience for water-related challenges at the recent United Nations Global Compact Network Malaysia and Brunei (UNGCMYB) Forward Faster Sustainability Awards 2023. Emerging victorious in the Water Resilience category, the recognition acknowledged the brewer’s progress made under the Towards Healthy Watersheds programme. This win extends the company’s track record as a member of UNGCMYB, having won two awards in 2022 for the UN SDG benchmarks of “Net-positive water impact in water-stressed basins” and “Zero waste to landfill and incineration”. Heineken managing director Roland Bala said in a press statement yesterday, “Guided by Heineken’s Brew A Better World sustainability strategy, our team has designed and implemented initiatives that focus on improving the way we use and protect water as a key resource for our business. “We also continue our collaboration with government agencies, civil society, and local communities to conserve our watersheds, which are the precious sources of water. We cannot do this alone and hope to inspire more companies and organisations to care for our watersheds.” The Towards Healthy Watersheds programme is a key part of Heineken’s Brew a Better World sustainability strategy. In its 2030 roadmap, the brewer strengthens its environmental responsibility by setting clear ambitions towards clean, safe, and sustainable watersheds, involving a three-pronged approach – Water Efficiency, Water Circularity, and Water Balancing. Property Maintain Positive Magni-Tech Industries Bhd Outperform. Target price: RM2.30 Able Global Bhd Buy. Target price: RM1.55 Source: TA Securities Source: PublicInvest Research Source: MIDF Research Dec 6, 2023: RM1.40 Dec 6, 2023: RM1.90
LYFE LYFE THURSDAY | DEC 7, 2023 22 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper oTikTok’s role in mental health awareness THE social media world, especially TikTok, plays a crucial role in shaping global perspectives. TikTok’s worldwide popularity is attributed to its user-friendly interface and adept algorithms, which break down complex topics into engaging videos. Recently, TikTok ran a Mental Health Awareness campaign, demonstrating its impact on reshaping the understanding of mental health. Through short videos, TikTok is not just increasing awareness about mental health but also making it easier for people to access support services. The platform actively encourages learning and knowledge-sharing, featuring insights from content creators like Lapheltzy, who opened up about his struggles with attention deficit hyperactivity disorder (ADHD) autism spectrum disorders (ASD), and mental health expert Dr Hazli Zakaria. Lapheltzy whose real name Aiman Kamal is a TikTok content creator and mental health expert who works as an eSports analyst as well as a respected commentator for toptier eSports tournaments. Starting as a coach in 2020, he later managed Axis eSports, winning Best Talent for MPL Malaysia seasons 10 and 12. His impact on Malaysian gaming earned him a Best of Gaming (Fourth from left) Lapheltzy with the eSports national team at the Philippines 30th Sea Games 2019. – PICS BY VOXEUREKA. █ BY HAZIQUE ZAIRILL TikTok content creator Lapheltzy. Empowering conversations nomination at the TikTok Awards. Beyond gaming, Lapheltzy serves as a mental health advocate on TikTok, sharing personal experiences to raise awareness. His candid content, including a discussion about his recent ADHD and ASD diagnosis in a TikTok live session, contributes to meaningful conversations about managing emotions. Hazli, founder of Alaminda Healthcare Berhad and Clinical Director of Alaminda, is an experienced clinical psychologist specialising in mood disorders such as depression, anxiety, bipolar disorder, adult ADHD, addiction and psychotherapy. Additionally, he served as the past president of the Malaysian Psychiatric Association (MPA) and is a dedicated TikTok content creator actively enhancing mental literacy awareness in the country. In their recent conversation with theSun, they explored ways to reduce stigma and foster a supportive community around mental health. As an online mental health advocate, why did you want to raise awareness in your community? Lapheltzy: In Asian culture, discussing such matters is often considered taboo. Prolonged suppression of negative emotions can have detrimental effects. The longer we endure, the more severe the consequences become. How do you help players manage their mental health as a coach or manager? Lapheltzy: Discussing mental health is crucial. While physical activities such as sports and meditation contribute to a solid foundation for mental well-being, I emphasise the strength of open communication. As someone who regularly attends therapy, I recognise the power of talking about it. This understanding motivates me to learn and engage in conversations with my players and friends. Is there enough awareness about mental health in Malaysia? Lapheltzy: Absolutely not. For many individuals, it becomes a guessing game, as people tend to ignore or self-diagnose instead of seeking professional help. In my case, it required a hospital visit and considerable expenses on various scans to determine that my issue wasn’t physical but rather mental. Dr Hazli: While there has been notable progress in increasing mental health awareness in Malaysia, there is still considerable work to be done. Although there has been a positive shift in recognising the importance of mental wellbeing compared with earlier times, there is ample room for more awareness, growth, education and acceptance in this field. Do social media and the internet help to spread these messages and reduce mental health stigma? Lapheltzy: The goal is to normalise it. Increased exposure and assurance from others that it’s okay contribute to a greater level of comfort in seeking professional help. This aspect should be emphasised — acknowledging that something is wrong is the first step, and taking action, such as consulting a professional, is a crucial follow-up. Dr Hazli: Digital platforms and social media, when used responsibly, serve as powerful tools for spreading mental health awareness and increasing access to support systems. These platforms, such as TikTok, enable the dissemination of accurate educational content, providing reliable information about mental health and its accessibility to a broader audience. Moreover, these platforms create a safe and non-judgemental space where individuals can openly share their mental health experiences, fostering honest and supportive conversations. Challenging the stigma associated with mental health is crucial for promoting open dialogue, encouraging help-seeking behaviour and enhancing understanding of mental health conditions. Education plays a pivotal role in dispelling these stigmas, ensuring that individuals and society are well-informed about mental health conditions, triggers and available support options. How can internet users and gamers make TikTok and their online gaming communities safer? Lapheltzy: Be friends. Foster understanding. While you can’t control most things in the world, embodying friendliness and empathy can be contagious. It begins with each individual asking, What can I do on my own? As echoed by seven billion people. Do you think posting and interacting on TikTok has helped Malaysians understand mental health? Dr Hazli: As a TikTok creator, I’ve witnessed the platform’s powerful impact on the conversation about mental health in Malaysia. By utilising TikTok as a tool to bring this topic to the forefront, we are not only making it more accessible but also relatable to a broader audience. This has significant potential to encourage real mental health discussions, clarify the confusion, and avoid stigma, especially among the next generation. Mental health expert and avid tiktok user Dr Hazli Zakaria
LYFE LYFE THURSDAY | DEC 7, 2023 23 A MINISTER in Telangana, a south-central state in India recently asserted that Telugu people would rule Hollywood and Bollywood in the next five years. Labour Minister Chamakura Malla Reddy made the remark at the Animal movie pre-release event in Hyderabad on Nov 27. Addressing the lead actor of the movie, Ranbir Kapoor, the politician said, “In the next five years, Bollywood and Hollywood will be ruled by our Telegu people.” Reddy spoke in Hindi. “After a year, everyone will have to move to Hyderabad because, you see, Mumbai is outdated and Bengaluru is stuck in traffic jams. Hyderabad is the only city in India.” He claimed that Kapoor would also have to shift to Hyderabad. In his speech, Reddy also showered praise on director SS Rajamouli, superstar Mahesh Babu and the director of Animal, Sandeep Reddy Vanga. Kapoor smiled awkwardly, but the netizens were not happy. The politician received backlash from both Bollywood supporters and Telegu film industry fans over his “toxic” statements. One fan advised the Bollywood fans not to take his word seriously. Another said, “Very bad representation of the Telegu people.” While another fan said, “It’s not right to degrade other cities to highlight Hyderabad.” Despite all this, Babu praised Kapoor, saying that in his opinion, Kapoor is the best actor in India. “Animal is your best work to date,” declared Babu on stage. - BY S. TAMARAI CHELVI Venom 3 production resumes Hardy is back in action on the set of Venom 3. – IMDB █ BYHAZIQUE ZAIRILL Kapoor in Animal. - IMDB Telegu actor Babu. - PICS COURTESY OF MANESH’S INSTAGRAM Charli XCX is engaged BRITISH singer Charli XCX is officially engaged to The 1975 drummer George Daniel. The singer shared photos of herself with the indie-pop artist and producer to confirm the engagement. The singer initially displayed her engagement ring discreetly on the singer’s personal Instagram post before making an official announcement via her public Instagram account on Tuesday morning. She playfully confirmed the engagement in the caption, stating, “Charli XCX and George Daniel f---ing for life.” The frontman of The 1975, Matty Healy, commented on the photos with “I cry.” Charli XCX, whose real name is Charlotte Aitchison, 31, officially confirmed her relationship with Daniel, 33, in May 2022. They have collaborated on several music projects, including songs like Crash, Selfish Girl, Spinning, Welcome to My Island and Bodies Bodies Bodies. In a previous interview with The Sun UK, Charli expressed how her relationship with Daniel has impacted her artistic approach. She mentioned that being in a relationship with another musician has influenced her, especially in terms of understanding and appreciating different creative processes. This shift has led her to reconsider her own pace, moving away from the quick, quick, quick, album a month mentality to embracing the idea of taking time to immerse herself in the music she creates. One of Charlie XCX’s songs, Speed Drive, contributed to the Barbie album soundtrack. - BY HAZIQUE ZAIRILL The singer has announced her engagement to the 1975’s drummer Daniel. – ATLANTIC RECORDS and Radio Artists’ (SAG-AFTRA) approval on Nov 8 of a tentative deal that resolved the 118-day actors’ strike. On the same day the strike concluded, Sony Pictures decided to postpone the release date of Venom 3 by a few months, shifting it from July 12, 2024, to Nov 8, 2024. Given the necessity to pause production for several months, the completion of the high-budget comic book title within the original summer time frame was unlikely. This circumstance mirrors the challenges faced by other films of similar magnitude, such as Mission: Impossible 8, which Paramount has already pushed back by almost a year and is now scheduled for 2025. In April, Sony Pictures unveiled plans at CinemaCon for the release of Venom 3 and a sequel to Ghostbusters: Afterlife. However, the SAG-AFTRA strike caused a delay in the filming schedules for both movies. Following the strike’s resolution, several films, including Deadpool 3 as reported by Variety and Beetlejuice 2 according to NBC Boston, have already resumed production. Telegu to rule Hollywood and Bollywood BRITISH actor Tom Hardy has revealed that production for Venom 3 is underway. The 46-year-old actor, who portrayed the host for an alien symbiote in Venom, announced recently that production for the third instalment of the Sony Pictures film series has begun, with the cast and crew back on set for filming. “Thankfully, we are back to shooting and I want to take a moment just to thank all the teams thus far on the ride from Venom 1 to here, all our fantastic cast and crew — good friends and family — we’ve come a long way,” the actor said in relation to the newest instalment in the trilogy. The trilogy centres around an alien symbiote coexisting in the same universe as Spider-Man. Hardy shared a black-and-white photograph featuring himself alongside director and writer Kelly Marcel and actor-cum-stunt double Jacob Tomuri. The trio appeared cheerful, all donning broad smiles. The actor had also previously posted an image from the Venom 3 set on Nov 16, indicating that the filming has been in progress for several days. The announcement was following Screen Actors GuildAmerican Federation of Television oSony Pictures has postponed the movie’s release date from July to November next year