CEOMorningBrief THURSDAY, JANUARY 18, 2024 ISSUE 704/2024 theedgemalaysia.com YELLEN SAYS US ECONOMIC PERFORMANCE ‘VINDICATES’ HEAVY COVID-ERA SPENDING p18 HOME: Average water tariffs rise by 22 sen/cu m in Peninsular Malaysia, Labuan from Feb 1 p2 Alstom and IJM Corp-led JV to complete aerotrain replacement project, confirms The Edge report p6 MACC records statement from ex-PM’s son p14 WORLD: Markets won’t give up on March Fed cut p15 StanChart CEO Winters warns US fiscal policy raises risk of debt buyer strike p18 Report on Page 3. MULTIPLE STOCKS TANK AS SELL-OFF SPREADS THE EDGE FILE PHOTO The heavy selling pressure that dogged Dr Yu's counters last week has spread to eight other stocks this week, prompting UMA queries, short-selling suspensions and lower limit freezes.
thursday january 18, 2024 2 The E dge C E O m o rning 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: eeditor@bizedge.com to advertise: advertising@bizedge.com 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 ceomorningbrief@bizedge.com Average water tariffs rise by 22 sen/cu m in Peninsula, Labuan from Feb 1 Abang Johari does not rule out possibility of Sarawak taking over a commercial bank KUALA LUMPUR (Jan 17): The National Water Services Commission (SPAN) has announced that water tariffs for domestic users in the peninsula and Labuan will increase an average of 22 sen per cubic meter (cu m), effective from Feb 1. In a statement, SPAN said this water tariff adjustment is implemented in response to the needs and requests of the state governments. Nevertheless, SPAN will closely monitor to ensure that water service improvements align with the tariff increase. SPAN also said the water tariff adjustments, governed by the Tariff Setting Mechanism (TSM), will standardise the tariff structure and components for the states in the peninsula and Labuan, with a three-year review cycle to maintain consistency in fee determination. SPAN added that this increase in water tariff is still insufficient to cover the actual cost of providing water supply services, amounting to RM1.75 per cu m based on KUCHING (Jan 17): Sarawak Premier Tan Sri Abang Johari Tun Openg does not discount the possibility of the state government taking over a commercial bank in the country. However, he declined to elaborate on a media report saying the Sarawak state government was planning to increase its shareholding in Affin Bank Bhd to 20%. “I don’t dare comment as Affin Bank is a listed company,” he told reporters here on Wednesday. In a filing with Bursa Malaysia on Jan 8, Affin Bank said the company’s major shareholder, the Armed Forces Fund Board (LTAT), had informed that it was in discussions with the Sarawak State Financial Secretary for possible transaction of additional shares in the bank. As at Dec 29, 2023, the Sarawak State Financial Secretary owned 4.796% equity interest in Affin Bank. On this development that signalled a home by Choy Nyen Yiau theedgemalaysia.com Bernama the actual record of 2022. However, through this tariff review, SPAN highlighted that water operators are better prepared to make continuous investments in developing water supply infrastructure, including building or upgrading water treatment plants, replacing obsolete pipes, conducting regular maintenance, and efficiently addressing complaints. “This approach ensures the continuity of water supply services and meets user expectations,” it added. To mitigate the impact of the increase on people’s monthly water bills, SPAN advised water supply operators in each state to continue existing initiatives, such as providing targeted assistance, including rebates to the B40 group. SPAN also emphasised that adjusting water tariffs to reflect the cost of water supply is crucial for enabling water operators to enhance the level of service in supplying continuous, high-quality water. “The adjustment of tariffs for the domestic category can no longer be delayed to avoid affecting the long-term sustainability of the water service industry, thus impacting the quality of water supply services,” it said. third entity was being targeted for takeover by the Sarawak government, he said: “As people say, there is no wind, the flag won’t be fluttering.” Last Friday, Abang Johari told reporters that the state government aimed to take over another entity to boost the business sector and entrepreneurship. According to him, the takeover would be announced in a month or two and that it would be one of three major entities to be wholly owned by the state this year. “There are three entities we are going to take over in 2024. The first one (Bintulu Port) was done, the second one will be announced soon, and the third one is of course MASwings Sdn Bhd. (After taking over the entities), we will have a complete economic system for Sarawak,” he said. Sarawak Premier Tan Sri Abang Johari Tun Openg declined to elaborate on a media report saying the Sarawak state government was planning to increase its shareholding in Affin Bank Bhd to 20%, saying "I don’t dare comment as Affin Bank is a listed company." File photo by Shahrill Basri/ The Edge Read also: Water tariff adjustment reasonable, to benefit consumers in long run — deputy minister
THURSDAY JANUARY 18, 2024 3 THEEDGE CEO MORNING BRIEF HOME Multiple stocks tank as sell-off spreads BY ADAM AZIZ & CHOY NYEN YIAU theedgemalaysia.com Heavy selling spreads from Yu’s counters to eight others Company Share Decline Decline % decline % decline Market Market price YTD YTD since on cap cap lost (RM) (RM) (%) Jan 15 Jan 17 (RM mil) YTD (RM mil) Rapid Synergy 3.96 24.52 86.1 50.9 29.9 423.3 2,621.1 YNH 1.22 3.03 71.3 50.6 29.5 644.8 1,601.3 Imaspro 1.23 2.565 67.6 21.7 10.2 98.4 208.0 Leform 0.175 0.265 60.2 64.3 35.2 259.2 392.5 SCIB 0.535 0.40 42.8 55.0 35.9 342.5 256.1 Artroniq 0.495 0.37 42.8 42.8 37.7 201.9 150.9 Mercury Securities 0.455 0.235 34.1 48.6 39.3 406.3 214.3 Mestron 0.315 0.125 28.4 32.3 32.3 314.4 124.4 Jentayu 1.14 0.15 11.6 13.0 12.3 500.4 41.7 APB 2.05 0.54 20.9 24.1 17.7 227.3 59.9 Globetronics 1.49 0.13 8.0 15.3 11.3 1,005.4 84.2 Common shareholder: Datuk Dr Yu Kuan Chon APB holds 10.41% stake in Globetronics No common shareholder As at Jan 17, 2024 Source: Bloomberg KUALA LUMPUR (Jan 17): More counters tanked on Bursa Malaysia on Wednesday, with several hitting limit-down and a couple having their short-selling suspended, as heavy selling pressure that first affected a few stocks last week appear to have spread. At least five companies — Sarawak Consolidated Industries Bhd (SCIB), YNH Property Bhd, Rapid Synergy Bhd, Jentayu Sustainables Bhd and Mercury Securities Bhd — hit limit-down. Four companies — SCIB, Jentayu, Mestron Holdings Bhd and APB Resources Bhd — got their intra-day short-selling suspended on the same day, as the stocks fell more than 15% or 15 sen. The sell-offs prompted Bursa to issue unusual market activity (UMA) queries, not just to Mercury and Jentayu, but also to Artroniq Bhd, which hit limit-down earlier this week. All in, the stock exchange regulator has issued nine UMA queries since the start of this year, with only one — to Magna Prima Bhd — due to a recent sharp rise in its share price. The Edge has identified at least 11 companies whose shares have tanked since 2024 began, despite the earlier positive sentiment seen across Bursa Malaysia that was evidenced by a boom in trading volume. Daily trading volumes across Malaysian listed equities hit an average 5.49 billion since Jan 1 — with a high of 6.96 billion shares recorded on Jan 8 — compared with 2023’s daily average of 3.25 billion shares. On Wednesday, daily trading volume remained elevated at 5.23 billion shares, but not because investors were buying. The sell-off was so far largely among the small caps. While the benchmark FBM KLCI slipped 0.66% over the last two days, it was still up 2.51% since the start of the year. The FBM Small Cap Index (comprising Main Market companies outside of the top 100 by market capitalisation), meanwhile, has fallen 3.02% since Monday, though it was still up 1.93% year to date (YTD). The ACE Index had the worst decline of 6.19% over the past two days, and is down 5.15% YTD. Yu sees over RM850 mil evaporate as associated stocks continue to dive The sell-off began last week with three counters — Rapid Synergy, YNH Property, and Imaspro — which are all linked to prominent investor Datuk Dr Yu Kuan Chon. Rapid Synergy has lost 86.1% since the Read also: Leform says unaware of reason behind heavy selling as shares lose 63% in two days Bursa freezes lower limit share price for Rapid Synergy, SCIB, YNH Property THE EDGE FILE PHOTO start of the year, YNH 71.3% and Imaspro 67.6%. Rapid and YNH, which hit limit-down in five of the last six trading days, had their lower limits frozen by Bursa on Wednesday at RM3.96 (Rapid) and RM1.22 (YNH), together with SCIB at 53.5 sen, “due to the counters trading at static limit down prices for two consecutive trading days”. Yu is the single largest shareholder in YNH Property (with a 32.58% stake) and in Rapid Synergy (22.8%). He is also the second single largest shareholder in Imaspro with 14.6% shareholding. So far, there have been no filings indicating shareholding changes at any of these companies. Since Jan 9, these three stocks saw a whopping RM3.35 billion in market capitalisation evaporate. Yu’s corresponding paper loss, based on his shareholdings, amounted to RM859.54 million. The other eight counters had largely been climbing in recent months, with several reaching multi-year highs on Monday, before they tanked. The most significant decline among these eight counters was Leform, which has dropped 64.3% since Monday, followed by SCIB (down 55%), Mercury Securities (48.6%), Artroniq (42.8%), Mestron (32.3%), APB (24.1%), Globetronics (15.3%), and Jentayu (13%). Typically, shares of listed companies face heavy selling in instances of margin calls as their share prices drop. When those who pledge their shares are unable to keep their positions open by topping up the balance to the minimum margin, those shares undergo forced selling. This would result in further margin calls. In short, it will lead to a vicious cycle of margin calls and dropping prices. However, it is quite rare to see margin calls being extended to more than a few days, according to brokers who spoke to The Edge. It is anyone’s guess right now as to what could be behind the prolonged sell-off in some of these counters, which have not seen significant changes in shareholdings despite the high volume traded. Following the UMA queries, four companies pointed to potential land deals in the pipeline, namely Magna Prima, Rapid Synergy, YNH and SCIB, while others told the bourse that they are unaware of the reason behind the volatility in their share prices.
THURSDAY JANUARY 18, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 17): Sarawak Consolidated Industries Bhd (SCIB) is in talks with the Sarawak state government over a potential land acquisition, the company said in response to an unusual market activity (UMA) query issued on Wednesday, after its shares hit limit down for the second consecutive day. “The company had on Jan 4, 2024 received the letter of offer from the Land and Survey Department of Sarawak to acquire some parcels of land measuring approximately 22 acres in size for the purpose of expanding the production capacity of the group. “The management is in the midst of discussion and considering the acceptSCIB in talks for potential land buy to expand capacity KUALA LUMPUR (Jan 17): A handful of counters seemingly linked by individuals holding directorships in the companies tanked on Wednesday, namely Sarawak Consolidate Industries Bhd (SCIB), Artroniq Bhd, APB Resources Bhd and Globetronics Technology Bhd, which succumbed to heavy selling pressure. They were among the top losers on Bursa Malaysia. APB Resources was the third-largest loser (by value) on Bursa Malaysia after it plummeted as much as 27.71% or 69 sen to RM1.80 before easing to a seven month-low of RM2.05 for a loss of 18.07% or 44 sen. Involved in the fabrication of process equipment for the oleo-chemical, oil and gas, energy and petrochemical industries, the company’s market capitalisation is RM231 million at the closing price. Point-of-sales solutions provider Artroniq Bhd was the fifth biggest loser for the day after nosediving to an intraday low of 49.5 sen — its lowest since Oct 2022 — for a loss of 37.74% or 30 sen. At 49.5 sen, the stock is valued at RM202 million. Artroniq received an unusual market activity (UMA) query from Bursa Malaysia on Wednesday, to which the company said it was not aware of any reason behind the activity. However, Artroniq and its subsidiaries are “continuously on the lookout for opportunities to strengthen its financial position,” it said in a filing. Civil engineering specialist SCIB was the day’s ninth-largest loser, plummeting as much as 35.93% or 30 sen to a limit down of 53.5 sen, valuing the company at RM343 million. It was the second straight day of limit down for SCIB, erasing all gains recorded over the last three months. SCIB was slapped with an UMA query by Bursa Malaysia on Tuesday. In response to that, the company said it is in talks with the Sarawak state government over a potential land acquisition to expand its production capacity. Semiconductor stock Globetronics was also among the top losers as its share price dropped 19 sen or 11.31% to RM1.49, after falling to a low of RM1.47 earlier. At RM1.49, Globetronics’ market capitalisation is RM1 billion. Market watchers were at a loss to explain the erratic performance of the companies but observed that individuals Kee Wui Hong, Ku Chong Hong and Kang Wei Luen hold director positions in these entities. Ku is SCIB group managing director and chief executive officer and was appointed as an independent non-executive director of APB Resources in December last year. Kang is an independent non-executive director of SCIB, Artroniq and APB Resources while Kee is currently an independent and non-executive director of ArTop losers SCIB, Artroniq, APB Resources and Globetronics share some common directors BY JUSTIN LIM theedgemalaysia.com BY HEE EN QI theedgemalaysia.com ance of this proposal. The Board believes that it would be more appropriate to release announcement(s) to Bursa Securities once the decision is made,” it stated. In a press statement on Wednesday, SCIB’s managing director Ku Chong Hong said the company does not have any influence over its share price movements and is not aware of any specific reasons for the recent trading activity. He has further emphasised that the company turned profitable in the latest financial quarter. “[SCIB’s recent achievements] include securing an RM97.7 million EPCC contract for the University Malaysia Kelantan project, signing a critical MOU for a RM250.0 million housing project in Bintulu with Kemena City Development Sdn Bhd and Smart Borneo Properties Sdn Bhd, and acquiring a RM16.8 million contract for Projek Pembinaan Pangkalan Pasukan Gerakan Udara PDRM Sarawak,” the company added. In the first quarter of FY2024, SCIB made a net profit of RM926,000 or 0.14 sen per share, from a net loss of RM871,000 or 0.15 sen per share a year ago. Read the full story CONTINUES ON PAGE 5 Sarawak Consolidated Industries Bhd 0 50 100 150 200 250 Jan 3, 2023 Jan 17, 2024 0.0 0.4 0.8 1.2 Vol (mil) RM/sen 53.5 sen 15 sen Source: Bloomberg Artroniq Bhd 0 17.5 35 Mar 1, 2023 Jan 17, 2024 30 50 70 90 Vol (mil) Sen 49.5 sen 66.3 sen Source: Bloomberg troniq. Kee resigned from APB Resources as an independent non-executive director on Dec 14 last year, due to personal and other commitments.
THURSDAY JANUARY 18, 2024 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 17): YNH Property Bhd, whose share price had tumbled 72% from a high of RM4.35 on Jan 4, revealed that it had proposed to purchase 5.1 acres of land here back in 2022 for RM150 million, cash, calling its non-disclosure of the deal earlier an “oversight”. In a bourse filing on Wednesday, the property developer said this announcement serves to rectify its oversight pertaining to the proposed acquisition and is made in accordance with Chapter 10 of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd. In April 2022, YNH Property’s unit Kar Sin Bhd (KSB) entered into a sale and purchase agreement and supplemental agreement with Great Wall Park Sdn Bhd (GWP) for the land acquisition. The freehold land is located within Desa Seri Hartamas, Kuala Lumpur. GWP is the principal involved in the building construction, while KSB is engaged in the property development and cultivation and sale of oil palm produce. Under the supplemental agreement, both parties agreed to terminate the turnkey construction agreement in 2016. KSB had paid the security of deposit of RM239.5 million under the turnkey construction agreement. However, the filing did not disclose details about the turnkey construction agreement. As such, they also mutually agreed that the security deposit of RM150 million shall be put towards the purchase consideration of the said land whereas the remaining sum of RM89.5 million shall be refunded by GWP to KSB within six months from the date of the notice of termination. YNH Property reveals proposed RM150 mil land buy from 2022, calls non-disclosure an ‘oversight’ Subsequently, in a supplemental letter dated Sept 2022, they mentioned the sale and purchase agreement shall continue to be effective, valid and enforceable only upon the fulfilment of these conditions, namely that KSB does not continue to develop the land, the land is successfully sold by KSB to a third party purchaser, and the balance security deposit of RM89.5 million shall be refunded to KSB on or before June 30, 2024. The land acquisition, which YNH Property viewed as a long-term investment, is subject to shareholder’s approval at the forthcoming extraordinary general meeting and is to be completed by June 2024. The purchase consideration was done through direct negotiation between GWP and KSB. No valuation was carried out on the said land. The company said last week that it is exploring proposals to sell certain landed properties of the company and its subsidiaries in response to an unusual market activity (UMA) query from Bursa Malaysia. Read the full story BY JUSTIN LIM theedgemalaysia.com FROM PAGE 4 Substantial shareholder No controlling or substantial shareholder has emerged following SCIB former chairman Datuk Mohd Abdul Karim Abdullah’s exit in June last year, when he disposed of all of his 139.67 million shares, representing a 21.81% stake, due to forced selling. The largest shareholder of the company is Datuk Seri Huang Tiong Sii, who holds 27.01 million shares or a 4.22% stake in SCIB. Similarly, Artroniq’s shareholding is fragmented, with no single party holding a substantial stake of at least 5%. Proven Venture Capital PLT holds a 4.188% stake, while Kenanga Investment Bank Bhd holds a 2.99% stake, according to Artroniq’s 2023 annual report. Proven Venture is jointly owned by more than 100 limited partners consisting of high-net-worth entities and individuals. APB Resources emerged as Globetronic’s substantial shareholder in December 2023, after it acquired a 10.41% stake in the Penang-based semiconductor manufacture, for RM140 million, cash, or RM2 per share. The other substantial shareholders of Globetronics are the Employees Provident Fund (14.08% stake) and Ooi Keng Thye (8%). APB Resources CEO and executive director Yap Swee Sang ceased to be a substantial shareholder after disposing of five million shares, or a 4.51% stake, via Ikram Pintas Sdn Bhd, for RM11 million, or RM2.20 per share in Oct last year. He is now left with less than 1% equity interest in the company. Interestingly, Press Metal Aluminium Holdings Bhd co-founder Datuk Koon Poh Tat emerged as APB Resources’ single largest shareholder in June last year after he bought a 5.72% stake in the company. Koon is also a substantial shareholder in PMB Technology Bhd, with a 5.33% direct stake and 0.012% indirect stake in the company. He is also executive director of PMB Technology, which is mainly involved in the design, fabrication and installation of aluminium curtain walls, cladding, skylights and façade works, as well as the fabrication and installation of aluminium system form works. Both Press Metal and PMB Technology shares also slipped on Wednesday. Press Metal dropped 15 sen or 3% to RM4.85, giving the company a market capitalisation of RM39.96 billion. PMB Technology also fell 11 sen or 3.69% to RM2.87, for a market value of RM4.6 billion. Over the past one year, Press Metal has fallen 9%, while PMB Tech has depreciated 31%. On the local bourse, over 800 counters were in the red on continued profit-taking activity after the FBM KLCI hit an almost 18-month high of 1,501.01 points on Monday. On Wednesday, the FBM KLCI eased 2.66 points to 1,491.21 from Tuesday’s close of 1,493.87. The broader market was weak with only 265 gainers, as 385 counters remained unchanged. APB Resources Bhd 0 4 8 12 Jan 3, 2023 Jan 17, 2024 0.5 1.0 1.5 2.0 2.5 3.0 Vol (mil) RM RM2.05 RM1.50 Source: Bloomberg Globetronics Technology Bhd 0 5 10 15 20 25 Jan 3, 2023 Jan 17, 2024 0.5 1.0 1.5 2.0 Vol (mil) RM RM1.49 RM1.12 Source: Bloomberg
thursday january 18, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): Datuk Seow Gim Shen, Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd have emerged as the new substantial shareholders of Rexit Bhd after acquiring an aggregate of 92.27 million shares or a 53.27% stake in the group for a total cash consideration of RM78.43 million via direct business transactions. In a statement issued by UOB Kay Hian Securities (M) Sdn Bhd on behalf of Rexit on Wednesday, the joint parties acquired the block of shares at 85 sen per share from three existing shareholders of the group — Rexit Ventures Sdn Bhd (41.2%), Global Hartabumi Sdn Bhd (11.94%) and the company’s current chief executive Datuk Chung Hon Cheong (0.13%). Seow acquired 40.41 million Rexit shares or a 23.33% stake in the group, Metaco acquired 31.18 million shares or an 18% stake, while Bemas acquired the remaining 20.69 million shares or a 11.94% stake in the group. According to the general insurance services provider, Seow serves as the chairman of Titan Pharmaceuticals Inc, a publicly traded company on the Nasdaq stock exchange. Meanwhile, Metaco is an investment holding company with its directors and substantial shareholders being Kong Chien Hoi, Leow Kian Yong and Chan Chau Loong. Bemas is also an investment holding company with its directors and substantial shareholders being Chung Ching Chi, Chong Yoke Siang, Chong Siew Yoong and Rexit’s new substantial shareholders make takeover offer at 85 sen per share KUALA LUMPUR (Jan 17): Malaysia Airports Holdings Bhd (MAHB) has announced that a consortium consisting of ALSTOM Transport Systems (Malaysia) Sdn Bhd, IJM Construction Sdn Bhd (IJMC) and Pestech Technology Sdn Bhd will be completing the aerotrain replacement project. The announcement confirms a report by The Edge last month. In a statement, MAHB said it has entered into an agreement with Alstom and the IJMC-Pestech joint venture (JV) to steer the aerotrain replacement project back on track. Alstom and Pestech were the original contractors for the train replacement project. MAHB terminated the contract in August last year citing Pestech being behind schedule as the reason. Under this new agreement, the statement said Alstom, the Aerotrain’s original equipment manufacturer, will serve as the project coordination lead and be responsible for coordinating the works to recommence the project and deliver three new trains and two lines by the first quarter of 2025 (1Q2025). According to MAHB, Alstom was given the prerogative to select their partners for works outside their scope, and Alstom has chosen to collaborate with the IJMC-Pestech JV for work scopes involving civil engineering and train power supply components, among others. Nevertheless, Alstom will take up the majority of the scope of work in the project. To ensure project continuity and adherence to the original timeline, MAHB said this new contract with Alstom, excluding operation and maintenance, is expected to incur a cost increase capped at 15%, bringing the project cost to RM456.1 million. This increase is attributed to interest holding costs, foreign exchange considerations, remobilisation expenses, as well as project coordination fees to Alstom. In a filing to the stock exchange on Wednesday, Pestech said that the contract sum for the IJMC-Pestech JV is RM175.65 million, with IJMC holding a participating interest of 60% in the portion of the works for the project and Pestech holding the remaining 40%. MAHB said the board has considered two crucial priorities in making the decision, which is maintaining the agreed fitfor-purpose technology and ensuring the project adheres to the original timeline for both lines. MAHB acting group chief executive officer Mohamed Rastam Shahrom said this is an acceptable variance for this project and allows it to get back on track. Alstom and IJM Corp-led JV to complete aerotrain replacement project, confirms The Edge report by Choy Nyen Yiau theedgemalaysia.com by Sulhi Khalid theedgemalaysia.com “The decision to deliver three trains and completing both lines simultaneously allows for optimal replacement works, to achieve the project completion date as originally planned. “We are looking forward to the contractors delivering the project by 1Q2025, for the comfort and convenience of our passengers at KLIA,” he added. Meanwhile, Alstom’s Singapore & Malaysia cluster managing director Yann Maixandeau said, “We are glad to resume work on this important national project in partnership with Malaysia Airports and IJMC-Pestech JV. Our team is committed to overcoming challenges, ensuring timely delivery, and enhancing the travel experience at KL International Airport.” The three-year aerotrain replacement project came with two deadlines originally, the first being July 2024 for the first of the two aerotrains to be operational, followed by the second one in March 2025 for full completion with both aerotrain services — spanning about 1.5km — coming online. The 25-year-old aerotrain was suspended in March last year, after a major breakdown that resulted in 114 passengers being stranded midway on the track. This occurred midway through the replacement programme, which was awarded to Pestech in December 2021, with Alstom supplying the aerotrain. In August 2023, MAHB decided to terminate Pestech, citing “non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline” as the reasons. Chung Yoke Seng.The joint parties have agreed to maintain the listing status of Rexit. Rexit, which made its debut in 2005, focuses on delivering solutions and services to the financial services sector, particularly the general insurance industry. The group offers several web-based insurance solutions that cater for front-end marketing and sales functions, as well as back-end operations and management requirements of insurance companies. Between the financial year ended June 30, 2020 (FY2020) and FY2023, Rexit’s profit climbed steadily from about RM9.52 million to about RM11.1 million, generated from annual revenues of between RM25.06 million and RM26.74 million. Its net margins were in the range of 36% to 42%. Meanwhile, in a separate local bourse announcement, trading in Rexit was halted with effect from 4.17pm Wednesday and will resume trading 9am Thursday. Shares in Rexit closed unchanged at 92 sen per share, valuing the company at RM174.19 million.
thursday january 18, 2024 7 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): RHB Research predicted an uptick in Malaysia’s headline inflation to 3.3% in 2024, against an estimate of 2.6% last year, amid a rise in Asean consumer prices. The research house said the inflationary pressures domestically stem from policy changes, costlier commodity and food, and heightened demand-side pressure. “Inflation risks (in Malaysia) are cushioned by steady food prices (partially due to the continuation of food subsidies and the release of buffer stocks). “Uncertainties over consumer prices are also led by policy manoeuvres, especially the actual implementation timeline and magnitude of fuel price adjustment for diesel in 2Q2024 (second quarter of 2024), followed by RON95 in 2H2024 (second half of 2024),” it said in a note on Wednesday. Meanwhile, RHB Research said it is seeing persistent signals for Asean consumer prices to accelerate higher in 1Q2024. It attributed the reasons for the inflation heat in the Asean region to stronger demand-pull drivers, adverse weather and geopolitical conditions, as well as China’s economic recovery. The research house is relatively sanguine regarding global economic growth in 2024, stating that catalysts for its view included rate normalisation which may materialise in 2H2024, dissipation of inflation risks over the same period towards key central banks’ objectives, and China’s potential economic recovery in 2024. It looks for an acceleration in global growth this year, led by further recovery in the US and China economies. “We expect US and China GDP (gross domestic product) growth to come above RHB forecasts 3.3% inflation for Malaysia in 2024 amid persistent price surge in Asean KUALA LUMPUR (Jan 17): Even though Malaysian government bonds (MGBs) saw a higher total return of 5.8% as at December 2023 compared to 1.5% for the full year 2022, Manulife Investment Management (Manulife IM) projects returns from the Malaysian bond market in 2024 may underperform its peers in the Asean region. “We are more neutral, I think in terms of the Malaysian bond market. It is not as relatively attractive compared to some of the higher yielding markets in the region, but it will be similar to other markets,” said Manulife IM chief investment officer of Asia (ex-Japan) for fixed income Murray Collis. Speaking at the Manulife IM 2024 Asia outlook virtual media briefing on Wednesday, Collis noted that the MGB yield of around 4% is just below the 10-year US Treasury. “Added to this, we don’t see as much room for BNM [Bank Negara Malaysia] to cut policy [overnight policy rate (OPR)] this year, given the potential for some of those policies [to be] working through the system and the subsidy cuts putting upward pressure on inflation,” he said. Manulife IM, which projects Malaysia’s gross domestic product (GDP) growth at 4.5% in 2024, expects Malaysia and several Asean countries such as India, Indonesia, Singapore and China to continue to remain resilient amid the global shocks. “If we put Asia as a region, as a whole, if we compare it to where they are right now versus the global financial crisis in 2018, and the Asian financial crisis in 1997... I think Asia as a region is in a much stronger position compared to where they were during those two crises,” Manulife IM global chief economist and strategist Frances Donald said. Manulife IM currently favours the Indonesian and Indian markets in 2024 as it sees higher economic growth potential for Indonesia with attractive valuations, Manulife IM says Malaysian bond market less attractive than regional peers by Anis Hazim theedgemalaysia.com by Lee Ming Hui theedgemalaysia.com while India is one of the fastest-growing major economies globally, coupled with its inclusion in global bond indices. US-China trade war continues to spur Malaysia’s FDI Manulife IM is of the view that the ongoing geopolitical trade tensions between the US and China will continue to attract more foreign direct investment (FDI) into Malaysia as the country is well-prepared in terms of infrastructure and human capital to support investments. “The US multinational companies are trying to set up their production base in Malaysia, [and] not only that, even the Taiwanese companies who serve clients globally in the US as well as in the EU region, are also looking for opportunities to invest in Malaysia — we continue to see interest [in FDI] and that should benefit the economy of Malaysia in the longer term,” said Manulife IM senior portfolio manager (equities) Kenglin Tan. Tan added that Malaysia’s growth will also be supported by government reforms, fiscal consolidation execution and the recent Johor-Singapore Special Economic Zone (JS-SEZ), which would strengthen the country’s macroeconomic foundation. consensus at 2.2% and 5.0%, respectively. We expect global growth to be underpinned by manufacturing and trade activities, a phenomenon that has already materialised in 2H2023,” it said. According to RHB Research, the higher commodity prices are underpinned by China’s economic recovery, which surpassed market estimates when its GDP growth for 3Q2023 rose 1.3% quarter-on-quarter on a seasonally adjusted growth basis, translating to a 4.9% year-on-year growth over the same period. Malaysia, Vietnam, Singapore, and Thailand are likely to experience improved trade and tourism opportunities, particularly in the electrical and electronics (E&E) trade, due to China’s economic momentum recovering in 2024, it said. “The positive spillover effects on Asean’s growth via the tourism and export mechanisms reinforce our view of demand-led inflation in Asean, which should eventually spill over to US inflation in the quarters ahead,” it added. Separately, it stated that food prices will likely point higher, exacerbated by India’s rice export ban and El Nino weather conditions, which threaten favourable harvesting conditions. Global inflation may also heat up further on the back of unpredictable geopolitical tensions, it said.
thursday january 18, 2024 8 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): Grab, which is facing calls for riders to boycott its e-hailing and food delivery platform over the company’s revamped delivery fee and bonus framework, said the new framework will benefit most of its active delivery partners. Base fares have been reduced under the revamped framework, which came into effect on Tuesday. However, incentives have been increased for peak-hour deliveries, distant pick-ups and extended wait times to pick up deliveries. This, according to Grab, will ensure bookings that require more time and effort would be “more fairly compensated”. “This is done with reference to our delivery partners’ recent feedback about bookings that involve longer wait times at merchants’ outlets or pick-ups that are further away,” the company said in a statement on Wednesday. The new framework has, however, come under fire from some Grab riders who have called for a boycott of the company, including by refusing to work on Friday. Malaysian P-Hailing Delivery Riders Association (Penghantar) has said it would not participate in the protest. Grab defends revamped delivery fee, bonus framework for delivery partners KUALA LUMPUR (Jan 17): The Malaysian Employers Federation (MEF) said it was disappointed with Fomema Sdn Bhd’s decision to increase the fees and frequency of medical examinations for foreign workers without any prior discussion with stakeholders. In a statement on Wednesday, MEF said businesses only found out about the increase in fees and frequency of the checkups when visiting the Fomema website. MEF president Datuk Syed Hussain Syed Husman said up till now, there has been no official announcement by the relevant government authorities with regards to the increases made by Fomema, which took effect from Dec 16, 2023. “Previously, foreign workers needed to do a medical check up to three years continuously and did not need to do any medical check-up until seven years later. The requirement for medical check-up was subsequently changed to every alternate year but now Fomema changed the requirement for foreign workers to every year[.]” “Fomema also unilaterally increased the fees by 10% to 14%. With about two million foreign workers, employers need to bear [a cost of] about RM414 million yearly for foreign workers’ Fomema medical examination,” he shared. MEF then urged the relevant authorities to step in and hold talks with the relevant stakeholders, as well as for the increase in fees and frequency of check-ups to be suspended in the meantime. Before the announcement on the increase in medical examination fees for foreign workers, the charges by Fomema were RM190 for male and RM207 for female foreign workers covering screening for HIV, Hepatitis B, syphilis and pregnancy, including use of opiates and cannabis. The fees have been increased to RM207 for males and RM217 for females and expanded to include three new categories, namely filariasis (roundworm), Hepatitis C and methamphetamine. MEF slams Fomema’s ‘unfair’ increase in fees, frequency of foreign workers’ medical exams Global supply dictates direction of local sugar industry, says minister by Sulhi Khalid theedgemalaysia.com Bernama by Sulhi Khalid theedgemalaysia.com bloomberg KUALA LUMPUR (Jan 17): The direction of the local sugar industry and supply needs to be seen not only at the price of sugar in the local market, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. He said other factors such as the stability of imported raw sugar supply and the sustainability of the local processed sugar supply industry chain should also be given attention. What’s more, according to him, the country depends 100% on the import of raw sugar for the domestic market. “In the past few years, the world has been dealing with rising raw sugar prices and what is even more worrying is the risk of a global sugar supply shortage,” he said in a post on his Facebook on Wednesday. He was commenting on his meeting with two local sugar manufacturers, namely MSM Malaysia Holdings Bhd (MSM) and Central Sugars Refinery (CSR), which was held at his ministry on Tuesday. Armizan also cited a Business Mirror article which reported that the world’s largest sugar trader, Alvean predicted the world would face the sixth consecutive year of sugar supply deficit. “It is predicted that the global market will experience a bigger sugar deficit of up to 5.4 million tonnes this year, compared to a deficit of one million tonnes last year. “This is due to various factors including weather conditions which are not conducive to sugarcane cultivation, domestic issues in the main producing countries such as India and Thailand, as well as geo-political conflicts that caused a large reduction in sugar beet cultivation as one of the sources of sugar supply other than sugarcane,” he said.
THURSDAY JANUARY 18, 2024 9 THEEDGE CEO MORNING BRIEF
thursday january 18, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): Ancom Nylex Bhd’s net profit rose 7.59% to RM22.12 million for its second quarter ended Nov 30, 2023 (2QFY2024), from RM20.56 million a year earlier, helped by an improvement in profit margins from the lower cost of sales of its industrial chemical products. Earnings per share increased to 2.33 sen from 2.30 sen, the group’s filing with Bursa Malaysia showed. Quarterly revenue was down 4.91% to RM505.16 million from RM531.25 million in 2QFY2023. On a quarter-on-quarter basis, the group’s net profit came in higher from RM20.80 million in 1QFY2024, while revenue increased from RM487.36 million. For the first half of FY2024, net profit climbed 5.74% to RM42.92 million from RM40.59 million in the previous corresponding period. Six-month revenue, however, declined 8.19% to RM992.52 million from RM1.08 billion previously, mainly due to lower revenue contribution from its agricultural chemicals division. Ancom Nylex declared its first interim dividend by way of distributing treasury shares on the basis of one dividend share for every 100 Ancom Nylex shares held. Looking ahead, the group said the El Nino phenomenon, coupled with the geopolitical tensions and tighter monetary policy, will affect the group’s businesses. “The board will continue to be vigilant in managing these risks and continue to explore and expand opportunities for our business. Barring any unforeseen, the group should perform satisfactorily for the remaining of the financial year,” it said. Shares in Ancom Nylex finished three sen or 2.68% lower to RM1.09 on Wednesday, giving the company a market capitalisation of RM1.09 billion. Ancom Nylex 2Q net profit up 7.6% on better profit margins Techna-X forms JV with Netsec to improve Malaysia’s cyber security landscape KUALA LUMPUR (Jan 17): PowerChina’s subsidiary China Hydropower (Malaysia) Co Ltd and Semarak Renewable Energy Sdn Bhd have signed a RM1.883 billion deal involving a green hydrogen project in Perak. The project encompasses green hydrogen production and storage through floating photovoltaic power generation. PowerChina’s Asia-Pacific regional headquarters deputy general manager Ye Haoliang said the project is aligned with the “ecological priority and green development” direction. The initiative involves the secondary development and utilisation of an abandoned tin ore lake, marking a significant contribution to Malaysia’s green and low-carbon transformation, he said in a joint statement on Wednesday. The statement said the project will focus on designing, procuring and constructing floating photovoltaics, hydrogen production units, and hydrogen storage units. It is set to become Malaysia’s first largescale green hydrogen production project, utilising floating photovoltaic power generation. The engineering, procurement and construction contract was signed recently by Ye and Semarak chairman Mohammad Shahil Ishak. PowerChina, leveraging its strengths in the new energy sector, has pledged to expedite the project’s planning and construction, emphasising its commitment toward aiding Semarak in becoming a pioneer in Malaysia’s green hydrogen industry. Since entering the Malaysian market in 1993, PowerChina has successfully undertaken over 150 projects with a total contract value exceeding US$7 billion. PowerChina’s unit, Semarak ink RM1.88 bil green hydrogen deal in Perak Bernama by Sulhi Khalid theedgemalaysia.com by Sulhi Khalid theedgemalaysia.com KUALA LUMPUR (Jan 17): Techna-X Bhd has acquired a 51% stake in Netsec Sdn Bhd and formed a joint venture with the company, as part of TechnaX’s efforts to improve the cyber security landscape in the country and beyond, the group said in a statement on Wednesday. The digital ecosystems and energy storage solution provider said the cyber security landscape in Southeast Asia presents a dynamic and rapidly evolving market, with an estimated value projected to reach US$4.49 billion by 2024. Techna-X executive chairman Tengku Naquiyuddin Tuanku Jaáfar said the partnership provides a strategic alignment of its digital expertise with seasoned cyber security professionals. “As Techna-X nears completion of our multifaceted corporate exercise, which will see Techna-X being recapitalised and strengthened, we are well-positioned to embark on this joint venture with Netsec, a distinguished leader in the cyber security industry. “We are confident that this collaboration will mark a new era of innovation and leadership in technology, further empowering Malaysia and the region in the cyber security digital domain,” he said. Netsec managing director Azman M Azizi said the collaboration with Techna-X is a pivotal step in reaching a wider market and leveraging their digital expertise and market presence. “With Netsec’s unique expertise and innovative products, this joint venture with Techna-X presents a strategic opportunity to capitalise on the burgeoning cyber security market. “This joint venture is more than a partnership; it’s a fusion of strengths that positions us to make a substantial impact in the dynamic world of cyber security,” Azman shared. Shares in Techna-X closed 0.5 sen or 25% lower to 1.5 sen on Wednesday, valuing the company at RM33.22 million.
thursday january 18, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): Hillcove Sdn Bhd has ceased to be a substantial shareholder in Excel Force MSC Bhd after it disposed of 24.70 million shares or a 4.42% stake in the financial services business solutions provider. In a Bursa Malaysia filing on Wednesday, the group said Hillcove had disposed of the shares on Jan 16 via a direct business transaction. However, it is not known who purchased the block of shares. Following the shares disposal, Hillcove now has 4.15 million shares or a 0.74% stake in the group. The disposal came less than two months after Hillcove emerged as a substantial shareholder of Excel Force, having acquired 28.85 million shares or a 5.16% stake in Excel Force via direct business transaction in December 2023. Excel Force is largely controlled by MyEG co-founder Wong Thean Soon, who owns a 18.23% stake, followed by Asia Internet Holdings Sdn Bhd with a 14.73% stake and Nizam Abdul Razak with a 7.83% stake. In May last year, the group announced the appointment of Farhash Wafa Salvador, former political secretary of Prime Minister Datuk Seri Anwar Ibrahim, as its new chairman. Farhash, 41, was made a non-independent non-executive chairman of 7-Eleven Malaysia Holdings Bhd in January last year, and in Dec 2022, had been appointed group executive chairman of Apex Equity Holdings Bhd. Farhash owns five million shares or a 0.89% stake in Excel Force. Shares in Excel Force closed 0.5 sen or 1.22% lower to 40 sen, giving it a market capitalisation of RM223.97 million. Hillcove ceases to be substantial shareholder in Excel Force KUALA LUMPUR (Jan 17): Master Tec Group Bhd, which is listing on the ACE Market later this month, has garnered target prices of 40 sen to 50 sen by analysts covering the company, on expectations of high demand for power cables from its major customers. Apex Securities ascribed a fair value of 50 sen for the company, on the back of 17 times financial year 2024 (FY2024) forecast price-to-earnings ratio (PER), “derived from Southern Cable Group Bhd’s average PE as it is the only comparable on the local stock exchange”. “The premium to Master Tec’s FY2023 forecast PER is justifiable, premised on Master Tec’s superior profit margins,” said the research house, which forecasted earnings per share (EPS) of 2.7 sen for FY2023, and 2.9 sen for FY2024. In a note, Apex Securities said ex-factory sales are expected to go up due to a rise in demand for wires and cables to RM11.21 billion in 2025 (previously RM9.61 billion in 2022), due to urbanisation leading to property development and major infrastructure projects. “We also favour Master Tec for its cost plus pricing strategy which protects its profit margin amid fluctuations in KUALA LUMPUR (Jan 17): Cuscapi Bhd’s executive chairman Datuk Jayakumar Panneer Selvam has ceased to be a substantial shareholder of the point-of-sale systems provider, after he disposed of 55 million shares or a 5.821% stake. Jayakumar received RM8.52 million on Tuesday (Jan 16) from the sale of the 55 million shares at 15.5 sen per share, through a direct business transaction via his private vehicle Ultimate Quality Success Sdn Bhd. Post disposal of the shares, his indirect shareholding in Cuscapi is reduced from 7.713% to 1.892%. He holds a direct stake of 0.315% in the company and a cumulative stake of 2.207%. Wong Thean Soon, the managing director of MyEG Services Bhd, is curthe commodity market,” it added. The research house pointed to national utility giant Tenaga Nasional Bhd’s announcement last year of RM90 billion investments expected over the next six years for grid infrastructure — which is favourable for Master Tec as it is involved in manufacturing and distribution of wires and cables. “Master Tec is expected to capture sales by supplying to various infrastructure projects accelerated under the Mid-Term Review (MTR) of the 12th Malaysia Plan (12MP) and Budget 2024,” Apex Securities added. Separately, TA Securities ascribed a fair value of 40 sen for the stock, based on 10 times FY2025 EPS forecast of four sen per share. TA Securities foresees estimated earnings growth, projecting increases of 39.6% to RM28.4 million for FY2023, 11.7% to RM31.7 million for FY2024 and 27.6% to RM40.5 million for FY2025. This is underpinned by its expansion plans and the growing demand from the end-user industries, it said, adding that it expects the domestic market will remain as the main market for the group. It also sees gross margins of 15.5% for FY2023, 15.6% for FY2024, and 16.0% for FY2025. According to Bursa Malaysia, Master Tec’s tentative ACE Market listing date is on Jan 29. Master Tec has priced its initial public offering (IPO) at 39 sen apiece, which translates to 20 times historical PER and 14 times forward PER — slightly lower than its peer Southern Cable Group Bhd, which has a forward PER of 16 times. Analysts ascribe 40-50 sen fair value for Master Tec amid positive industry outlook Cuscapi chairman ceases to be its substantial shareholder by Cheryl Tan theedgemalaysia.com by Syafiqah Salim theedgemalaysia.com by Sulhi Khalid theedgemalaysia.com More from brokers: Kerjaya Prospek’s latest job award within expected 2024 contract replenishments, say analysts rently the largest shareholder in Cuscapi, holding a 30.77% stake, according to Bloomberg data. Last month, Cuscapi sold off its entire 12.08 million shares in MyEG for RM11.11 million cash. Shares of Cuscapi finished half a sen or 2.78% lower at 17.5 sen on Wednesday, valuing the company at RM161 million.
thursday january 18, 2024 12 The E dge C E O m o rning brief home news In brie f Favelle Favco bags five contracts worth RM79.4 mil KUALA LUMPUR (Jan 17): Construction crane manufacturer Favelle Favco Bhd (FFB) has secured five contracts, for the supply of cranes to machinery replacements, worth a combined RM79.4 million. The contracts, which are expected to be delivered by mid- to end of 2024, were awarded to its subsidiaries Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd and Sedia Teguh Sdn Bhd between Nov 30, 2023 and Jan 17, 2024. The clients are Servizi Energia Italia SpA, Resolution Rigging Services Pty Ltd, E&P O&M Services Sdn Bhd, Petron Malaysia Refining & Marketing Bhd, and Petronas Carigali Sdn Bhd. “The above contracts are expected to contribute positively to the earnings and net assets of FFB for the financial year ending Dec 31, 2024 and beyond,” FFB told Bursa Malaysia on Wednesday. — by Emir Zainul TDM expands healthcare network, invests RM29.1 mil for two new hospitals KUALA TERENGGANU (Jan 17): Plantation and healthcare outfit TDM Bhd, a subsidiary of the Terengganu state government, has invested RM29.1 million to build two hospitals this year. Its executive director Najman Kamaruddin said the group’s healthcare sector contributes more than 50% to the overall profits and the two new hospitals are expected to increase the profits considerably. “An investment of RM14.1 million is allocated for the construction of the 100-bed KMI Chukai Medical Centre in Kemaman, while Razif Hospital in Klang, Selangor involves an investment of RM15 million for the takeover process. “Both of these hospitals will be managed by TDM’s subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare),” he said during a press conference after presenting RM2.9 million to the Terengganu State Heritage Trust Fund Board, which is part of the company’s joint venture profit agreement for 2022, at Wisma Darul Iman here on Wednesday. Najman also said the group plans to expand its medical network on the East Coast in the next five years, as an effort to meet the increasing demand for the health services offered by TDM. — Bernama KPMG’s head of audit to be incoming managing partner KUALA LUMPUR (Jan 17): KPMG Malaysia has announced the election of its current head of audit, Foong Mun Kong, as its incoming managing partner, with effect from Jan 1, 2025. According to KPMG’s statement on Wednesday, he will succeed Datuk Johan Idris, who will transition to become the firm’s non-executive chairman at the end of his tenure as managing partner on Dec 31, 2024. Foong has been the firm’s head of audit since 2014, having proven expertise in various professional practice roles at the Malaysian Institute of Accountants (MIA), the Malaysian Institute of Certified Public Accountants (MICPA), and the Malaysian Accounting Standards Board (MASB). “I’m extremely pleased to welcome Mun Kong as my successor with the full confidence that his expertise and leadership will benefit KPMG and the clients our professionals serve. “This passing of the torch is part of the firm’s one-year succession plan to ensure that KPMG remains on solid footing to drive continued business growth in Malaysia,” said Datuk Johan Idris. — by Lee Ming Hui Foong Mun Kong (left) with Datuk Johan Idris. advancecon.com.my Read the full story Section 11 of West Coast Expressway set to open in 1Q2024 TAIPING (Jan 17): Section 11 of the West Coast Expressway (WCE) from Beruas to Taiping (South) is expected to be commissioned in the first quarter of this year, at the latest in April. Malaysian Highway Authority (LLM) deputy directorgeneral (Development) Dr Nadzrol Fadzilah Ahmad said efforts are being made to commission the section before Chinese New Year, but she is confident that it can be operational before Hari Raya Aidilfitri. “The aim is to help people avoid congestion, but it is still subjective because safety is our priority,” she said at a press conference here on Wednesday. Earlier, Perak Menteri Besar Datuk Seri Saarani Mohamad, together with state executive councillors, had taken a tour to inspect the construction of the WCE project. She also pointed out that toll booths will be opened for free use as usual, for a certain time. West Coast Expressway (WCE) Holdings Bhd chief executive officer Lyndon Alfred Felix said construction progress had reached 98% by Dec 31 last year. The project, which is being undertaken by West Coast Expressway Sdn Bhd under a privatisation initiative, connects Taiping and Banting, Selangor, and has a total length of 233 kilometres (km). — Bernama Advancecon secures RM21 mil subcontract from CCC-ECRL KUALA LUMPUR (Jan 17): Advancecon Holdings Bhd has secured RM21.19 million in subcontract work from China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL). The group’s 51%-owned indirect unit Spring Energy Sdn Bhd accepted the subcontract from CCC-ECRL on Wednesday for the construction and completion of subgrade works, Section 8 from CH518+388.00 to CH519+000.00, according to a bourse filing. Advancecon, which is involved in construction and quarry operations, said it will fund the subcontract via internally generated funds and external borrowings. The subcontract, which will be completed on Dec 31, 2024, is expected to contribute positively towards Advancecon’s future earnings, it added. — by Syafiqah Salim
thursday january 18, 2024 13 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): The High Court has dismissed the Malaysian United Democratic Alliance (Muda)’s bid to refer questions on whether the Malaysian Anti-Corruption Commission (MACC) can probe sitting superior court judges to the apex court. In delivering his decision on Wednesday, judge Datuk Ahmad Kamal Md Shahid said the youth-based party’s application lacked merit and that the proposed questions of law were academic. “This court finds that the proposed questions are academic since MACC’s view has been superseded by the Federal Court’s decision in [former prime minister Datuk Seri] Najib [Razak’s SRC International Sdn Bhd] case. Therefore this court is of the opinion that the proposed questions should not be entertained by this court nor referred to the Federal Court,” he said. He added that the power to interpret constitutional provisions is not exclusively within the apex court’s ambit. “Under the constitutional scheme, the Federal Court is generally a court of last resort for all constitutional questions. Only in a narrow category of exceptional cases — as those expressly stipulated in Article 128 of the Federal Constitution — such questions must be determined by the Federal Court at the first instance,” the judge said, adding that Muda’s proposed questions did not fall within this category. The court made no order as to cost. The party sought two court declarations over the anti-graft agency’s jurisdiction concerning sitting judges at the High Court, appellate, and apex court. It wanted a declaration that the MACC had no authority or jurisdiction to investigate and make a finding that the judges had breached the Judges’ Code of Ethics 2009, or were in conflict of interest in presiding over a particular case. In its originating summons filed in April last year, Muda also sought a declaration that the graft buster’s finding or view that judge Datuk Mohd Nazlan Mohd Ghazali had breached the Judges’ Code of Ethics 2009, and/or had a conflict of interest in presiding over the SRC case, is unlawful and/or unconstitutional. Muda had filed a subsequent application to refer these questions to the Federal Court. Read the full story KUALA LUMPUR (Jan 17): The prosecution on Wednesday handed over a statement from Consortium Zenith Construction Sdn Bhd director Datuk Zarul Ahmad Mohd Zulkifli, which had been recorded by the Malaysian Anti-Corruption Commission (MACC), to Lim Guan Eng’s lawyers for use in impeachment proceedings in the Penang undersea tunnel case. Deputy public prosecutor Datuk Wan Shaharuddin Wan Ladin informed Sessions Court Judge Azura Alwi that the document had been handed over, and Lim’s lawyer Mohd Haijan Omar confirmed that he had received it. Following this, impeachment proceedings on Zarul Ahmad would resume on Feb 26, as scheduled. Previously on Jan 9, this year, judge Azura granted the defence application to begin impeachment proceedings on Zarul Ahmad and directed 31 out of 108 pages of the CZCSB director’s statement to be given to Lim’s lawyers for them to look at it. With the impeachment proceedings, a trial within a trial will be held to determine the veracity of Zarul Ahmad’s testimony, made in the present undersea tunnel graft trial, and whether he had been lying under oath. If the former director is found guilty, he could face jail time or a fine. The conflicting testimonies that resulted in the impeachment proceedings follow Zarul Ahmad’s testimony that the RM2 million which he gave to businessman Datuk Seri G Gnanaraja in this trial was for Lim. He had explained that the RM2 million was retrieved from his company and another RM2 million he took out from his safe to give to Lim. However, in Gnanaraja’s case where the businessman was originally charged with cheating but pleaded guilty to offences under the Companies Act 2016, the said money referred to as “chocolates” was supposed to make its way to former prime minister Datuk Seri Najib Razak Undersea tunnel impeachment trial to proceed, as Guan Eng’s lawyers receive Zarul’s key statement in a bid for the MACC to drop its case against Zarul Ahmad. Following this conflicting evidence, the defence then led by Gobind Singh Deo sought to impeach Zarul Ahmad. For the Penang undersea tunnel trial, Lim, 60, is alleged to have used his position as the then-Penang chief minister to receive bribes amounting to RM3.3 million by helping a company owned by Zarul Ahmad to be appointed to implement a highway and undersea tunnel project in Penang worth RM6,341,383,702. Lim was alleged to have committed the act between January 2011 and August 2017 at the Penang Chief Minister’s Office. For the second amended charge, Lim allegedly sought a bribe of 10% of the profits from Zarul Ahmad, as an inducement to help the businessman’s company to be appointed for the same project. Lim allegedly committed the act near The Gardens Hotel, Lingkaran Syed Putra, Mid Valley City, Kuala Lumpur, between 12.30am and 2am, in March 2011. He is also facing two charges of causing two lots of land owned by the Penang government worth RM208.8 million to be disposed of to companies allegedly linked to the undersea tunnel project in the state. The offences were allegedly committed at the Penang Land and Mines Office, Komtar, on Feb 17, 2015 and March 22, 2017. by Hafiz Yatim theedgemalaysia.com Muda’s bid to refer questions on MACC’s powers to apex court dismissed by Tarani Palani theedgemalaysia.com klbar.org.my
thursday january 18, 2024 14 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 17): The Malaysian Anti-Corruption Commission (MACC) confirmed that the commission had recorded a statement from the son of a former Prime Minister on Wednesday, believed to be over his business ventures in the late 1990s. A source from the MACC when contacted said the individual was called to give his statement, including declaring his assets in the country and abroad. The investigation is believed to be over the individual’s purchase of a government linked company’s (GLC) subsidiary. “The investigation requires the individual to declare all his assets, either in the country or outside the country, in writing,” said the source. Media reports claimed that the MACC had called up the individual last month in connection with claims of bribery and corruption. MACC records statement from ex-PM’s son CYBERJAYA (Jan 17): Prime Minister Datuk Seri Anwar Ibrahim and 31 ministers are attending the Unity Government Cabinet Members’ Retreat 2024 here. The retreat, being held at Cyberview Resort & Spa on Wednesday and Thursday (Jan 18), also sees the attendance of 15 special guests, according to a statement from the Prime Minister’s Department (JPM). Anwar, who is also finance minister, arrived at the retreat at 2.40pm on Wednesday and was received by chief secretary to the Government Tan Sri Mohd Zuki Ali and Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz. Also present were Deputy Prime Ministers Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof. JPM said the holding of the retreat is in line with the prime minister’s desire to deliver his mandate to all Cabinet members and top civil servants regarding the government’s direction and strategy for this year, and in the medium- and long-term. KUALA LUMPUR (Jan 17): The director and the producer of the controversial indie film Mentega Terbang were charged the Magistrate’s Court here on Wednesday for allegedly offending the religious beliefs of others through the film. The director and scriptwriter, Mohd Khairianwar Jailani, 32, and the film’s producer, Tan Meng Kheng, 36, pleaded not guilty after the charges were read out to them separately before Magistrates Noorelynna Hanim Abd Halim and Aina Azahra Arifin respectively. They are charged with deliberately intending to wound the religious feelings of others by uttering words and placing objects in the sight of people at a premises on Jalan Semarak Api, here, at 12.34pm on Feb 26 last year. The offence was framed under Section 298 of the Penal Code, which carries a maximum jail term of one year, or a fine, or both, if convicted. Magistrates Noorelynna Hanim and Aina Azahra allowed Mohd Khairianwar and Tan bail at RM6,000 and RM6,500, respectively, with one surety each, and also ordered both accused to report themselves at a police station every month pending the disposal of their case. The retreat is aimed at achieving alignment of objectives and creating a sense of joint ownership and unity among Cabinet members on the government’s integrated and comprehensive action plans, based on the whole of government and whole of nation concept. “This retreat programme is also aimed at strengthening synergy and cooperation between the Cabinet and the civil service leadership, as well as enabling the implementation of these action plans with focused execution to realise the Madani Economy aspiration,” the statement said. JPM said the programme features several discourse and forum sessions involving experts from the public and private sectors, industries and international organisations. Among subjects of discussion are economic challenges and direction; social welfare and security; infrastructure development and sustainability; governance, innovation and communication, toward the country’s prosperity, said JPM. On Tuesday (Jan 16), Anwar said the retreat would focus on seeking new initiatives to spur the country’s economy, apart from reviewing the implementation of policies launched by the government throughout last year. The first such retreat was held in Putrajaya in January last year, and it discussed, among other things, the direction and setting of key performance indicators (KPI) for every ministry in the Unity Government. PM, ministers attend retreat in Cyberjaya ‘Mentega Terbang’ film director, producer claim trial for allegedly offending religious beliefs of others Bernama Bernama Bernama They also allowed the prosecution’s request for a gag order preventing both accused from making any comments or statements on their cases pending disposal of the cases. Both courts fixed March 14 for mention. Deputy public prosecutors Abdul Malik Ayob and Nor Azizah Aling appeared for the prosecution, while lawyer N Surendran represented Mohd Khairianwar and Tan. Based on media reports, the Home Ministry had banned the screening of the locally produced film Mentega Terbang in Malaysia following the publication of a government gazette, Film Censorship (Prohibition) Order 2023, that was signed by Home Minister Datuk Seri Saifuddin Nasution Ismail. Mentega Terbang, which was available for free viewing on digital streaming platforms, has faced objections from some Muslims in the country who allege that it contains elements of religious pluralism affecting their faith. Mentega Terbang director and scriptwriter Mohd Khairianwar Jailani (left) and film producer Tan Meng Kheng pleaded not guilty after the charges were read out to them separately before Magistrates Noorelynna Hanim Abd Halim and Aina Azahra Arifin. bernama
thursday january 18, 2024 15 The E dge C E O m o rning brief world (Jan 17): The European Central Bank probably has a consensus among officials that an interest-rate cut will arrive in the summer, according to president Christine Lagarde. Speaking at Bloomberg House in Davos in an interview with Bloomberg Television’s Francine Lacqua, she said that policy makers are “on the right path” in their fight to tame consumer prices, and that it’s their role to say what is likely to happen. “I would say it’s likely too,” Lagarde said. “But I have to be reserved, because we are also saying that we are data dependent, and that there is still a level of uncertainty and some indicators that are not anchored at the level where we would like to see them.” Just a day before the start of the socalled quiet period that precedes ECB monetary-policy meetings, the president is joining many of her colleagues in seeking to damp expectations of imminent loosening, while acknowledging that officials are on a path to ultimately lower borrowing costs.” “You’ve talked to some of them, they have spoken recently, and each of them has their view, which I respect completely,” Lagarde said. “We generally coalesce towards the decisions that we make on the basis of data. Some of them have their local domestic data, they have their respective inflation rates, which are different from one country to the other.” While the president recognised how consensus is forming, she also said that market bets on aggressive rate cuts are a distraction. “It is not helping our fight against inflation, if the anticipation is such that they are way too high compared with what’s likely to happen,” Lagarde said. Lagarde says it’s likely ECB will cut interest rates in summer LONDON (Jan 17): If the first cut is the deepest, timing will be everything. Even though futures pricing for a move has ebbed and flowed over the weeks since Federal Reserve (Fed) policymakers electrified markets last month by pencilling 75 basis points (bps) of cuts for 2024, they have consistently assigned a 50% or greater chance of a move as soon as March. But listening to the full sweep of Fed speakers, that seems brave. Officials couch the policy horizon in a bit of fog as they greedily gather more data to support a critical switch of direction — but more and more point to a first move from midyear on, with some even retaining the option of one final hike. Once again on Tuesday, the implied probability of a March cut moved as high as 75% early in the day — only to slip back again after governor Christopher Waller acknowledged the Fed’s 2% inflation goal was within striking distance but doused any need to be ‘rushed’ with a first rate cut while assessing the ‘coming months’ of data. The relatively gentle rap on market knuckles elicited an equally modest response and futures stayed roughly 70% priced for a March move. All of which may sound like a familiar old story of irrational market exuberance and foolishly fighting the Fed. Perhaps. But the obsession with March is not without foundation. Aside from the curious fact that March has lately become a bit of milestone month for the Fed — it was the month of the final cut in 2020 and the month it started tightening in 2022 — there are good reasons why futures won’t give up the ghost. Wedges and targets Last week’s US consumer price report for December lit a fire under March bets despite headline readings initially suggesting it was another obstinate inflation picture the Fed seems to be so cautious about. But combined with the following day’s benign producer input data, breakdown of the consumer price index (CPI) and producer price index reports showed very soft readings for components in both that hold larger weightings in the Fed’s favoured personal consumption expenditures (PCE) inflation gauge — the December version of which is due on Jan 26. A ‘wedge’ between CPI and PCE appears to be widening. So much so that many banks and traders slicing and dicing inflation stats quickly homed in on the likelihood that six-month annualised ‘core’ PCE inflation is now falling below the Fed’s 2% target. That price picture was enough to prompt Barclays this week to bring forward its forecast for the first Fed rate cut to March from June — as it now sees annualised core PCE for the second half of 2023 as low as 1.9% compared with an equivalent CPI measure still over 3%. UBS economists similarly now see the six-month annualised core PCE inflation rate as low as 1.8% — almost a third of its peak at 5.9% in March 2022. And while many forecasters warn these measures could pop back slightly above 2% again in the first few months of 2024, most, including Morgan Stanley, are also cutting their full year 2024 core PCE outlooks. These shifting sands mean that, regardless of the date of the first cut, the total amount of easing priced for 2024 has now moved consistently back above 150 bps — twice Fed indications from last month and 15 bps up from the start of January. And many also point out that if you watch other momentum indicators — three-month or even one-month annualised core PCE rates — they have been under 2% since the middle of last year. Markets won’t give up on March Fed cut by Mike Dolan Reuters by Francine Lacqua, Mark Schroers & Jana Randow Bloomberg Read also: UK inflation rises unexpectedly, tempering talk of rate cuts Citigroup sees Fed’s first rate cut in Read the full story June reuters
thursday january 18, 2024 16 The E dge C E O m o rning brief world China stock rout deepens as economic data stoke recovery concerns China downplays big stimulus in 2024, testing investor patience Bloomberg by Ishika Mookerjee Bloomberg Authorities don’t want to give the impression that they are very worried about growth, and they want to try to see the economy through 2024 without significant stimulus. There is a risk that they are underplaying the downward pressures on the economy.” — S&P economist (Jan 17): Chinese Premier Li Qiang gave his clearest signal yet that Beijing won’t resort to huge stimulus to revive growth amid the worst bout of deflation in decades. Another batch of troubling data is testing the patience of investors who worry that Beijing is behind the curve. Speaking to leaders at the World Economic Forum this week, Li trumpeted his nation’s ability to hit its roughly 5% growth target last year without flooding the economy with “massive stimulus.” While data Wednesday confirmed that economic goal, it also showed China recording its worst deflationary streak since the Asian Financial Crisis. Home prices fell last month by the most since 2015, underscoring the scale of the property crisis. In portraying the economy’s trajectory as a success, Li stressed that officials did “not seek short-term growth while accumulating long-term risk” — a veiled reference to Beijing’s old methods of powering growth by borrowing heavily and funding the now-overheated real estate sector. “Authorities don’t want to give the impression that they are very worried about growth, and they want to try to see the economy through 2024 without significant stimulus,” said Louis Kuijs, chief economist for Asia Pacific at S&P Global Ratings. “There is a risk that they are underplaying the downward pressures on the economy.” While “bazooka-style” stimulus helped lift the economy out of the global financial crisis more than a decade ago, that debt-fueled expansion led to overcapacity and saddled many local governments with huge financial burdens. Now the ruling Communist Party has to figure out what kind of stimulus — and how much — can help it successfully fend off a deflationary spiral, put a floor under the real estate crisis and create sustainable development. Chinese-listed stocks in the US fell after Li’s comments in Davos, Switzerland on Tuesday. Following the release of the economic data Wednesday, the Hang Seng China Enterprises Index notched its worst day since October 2022. A benchmark for mainland equities slid as foreigners dumped the largest amount of shares in more than a year. With key benchmarks in Hong Kong close to wiping out all gains seen since the late 2022 reopening frenzy, traders are scrambling to find the bottom of the rout. Global funds from the US to Australia are increasingly distancing themselves as doubts over Beijing’s long-term economic agenda drive a structural shift away from what was once a must-have market. Li seems “to indicate that he is confident China can keep this growth rate without stimulus. I don’t think it will be easy,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA. While the People’s Bank of China took some fairly aggressive steps last month to pump cash into the financial system, it stopped short Monday of cutting a key policy rate, disappointing those who had set widespread expectations for doing so. Bloomberg News reported soon after that China was considering issuing one trillion yuan (RM655.9 billion) in ultra-long sovereign bonds, but markets shrugged that off, too. “They need to cut rates if they want to reach 5% growth” this year, Garcia Herrero said, adding that China risks making the same mistakes as the Bank of Japan did in not reacting to deflation in the early 1990s, when that nation was beset by a prolonged period of poor economic growth. “They need to move.” While the data showed some greenshoots — production of electric cars surged 30% last year and solar panel output soared 54% — nominal GDP growth tracked behind real inflation-adjusted GDP growth for a third straight quarter, indicating an extended fall in prices. Property was a major overhang. Real estate investment fell 9.6% last year from 2022. Housing new starts — a key gauge of confidence among developers — plunged 20.9%. The drop in property investment “has definitely not reached the bottom,” said Jacqueline Rong, chief China economist at BNP Paribas SA. She called property the “biggest downward pressure on the economy.” Read the full story (Jan 17): A rout in Chinese stocks deepened on Wednesday as a slew of disappointing economic data reinforced bearish sentiment towards the market. The Hang Seng China Enterprises Index fell 3.9%, recording its worst day since October 2022. The CSI 300 benchmark for mainland shares slid 2.2% as foreigners sold 13 billion yuan (RM8.48 billion) worth of stocks on a net basis, the most in more than a year. Investors, already disheartened by a lack of interest-rate cut by the People’s Bank of China (PBOC) earlier this week, appeared to be throwing in the towel as data on Wednesday showed persistent challenges from deflation pressures and the property crisis. “It’s capitulation,” said Derek Tay, head of investments at Kamet Capital Partners Pte Ltd. “What started this week as an impasse from the PBOC has ballooned to concerns of economic risks, with the latest data dump further confirming the continued decline.” With key benchmarks in Hong Kong close to wiping out all gains seen since the late 2022 reopening frenzy, bewildered traders are left wondering where the bottom of this rout is. While some point to depressed valuations as reasons for at least a short-term rebound, sentiment is so weak that stimulus efforts aren’t enough to move the needle. Read also: China’s 2023 GDP shows patchy economic recovery, raises case for stimulus
thursday january 18, 2024 17 The E dge C E O m o rning brief world (Jan 17): Donald Trump signalled he would again make his stance on China a key part of his US presidential campaign strategy, drawing an unsubstantiated correlation between turbulence in the nation’s equity markets and his runaway Iowa Republican caucus victory. While a gauge of US-listed Chinese stocks retreated Tuesday, shares traded in mainland China rose. Recent weakness in the country’s markets has more to do with domestic concerns than Trump, according to Willer Chen, an analyst at Forsyth Barr Asia Ltd. Yet Trump drew from his familiar playbook of attributing the ebb and flow of markets to his policies and actions. “I felt very badly for them. China had a crash yesterday in their stock market. You know why? Because I won Iowa,” Trump said Tuesday night while campaigning in New Hampshire, the next state in the Republican nomination calendar. “Literally, as soon as those numbers started coming in yesterday, they had a crash — of big — one of the worst numbers that they’ve had in years.” The boast gave investors and voters a glimpse of Trump’s trade doctrine should the public return him to the White House in the November election. His first term was marked by a tit-for-tat trade war that he engaged in with Beijing. For a second term, Trump has floated the idea of encircling US industry with a 10% tariff, which would bring a fresh wave of disruptions to supply chains. “I love China. I love everybody but they can’t take advantage of us,” Trump said. “That tells you what it’s about. If I get in they know it’s not going to be so good for them.” The Nasdaq Golden Dragon China Index, a gauge tracking Chinese companies listed in the US, fell 3.8% overnight to its lowest level since November 2022. Chinese electric vehicle maker Nio Inc and internet giant Baidu Inc were among the biggest losers. The benchmark CSI 300 Index of Chinese-listed shares rose 0.6%, paring its decline over the past 12 months to 21%. “It’s very Trump style,” Chen said. “Personally, I don’t think the drop is related to that. It’s more about China market’s own problem, I would say. But Trump for sure would love to link that to his victory.” Trump’s campaign event in Atkinson, New Hampshire came a day after he scored a resounding victory in Iowa, well ahead of his two chief rivals, Florida Governor Ron DeSantis, who came in second, and former South Carolina Governor Nikki Haley who finished in third. The Monday caucus win takes Trump one step closer to seizing the Republican nomination, with polls also showing him leading in New Hampshire, though by a smaller margin than in other early voting states. Trump’s commanding grip on the GOP presidential race has other nations worried about his possible return to the White House and the consequences it could hold for the rest of the world. A Trump victory could usher in changes for US policy on trade, taxes and security. BANGKOK (Jan 17): Thailand’s jailed former Prime Minister Thaksin Shinawatra qualifies for release on parole next month due to his age and health, a corrections department official said on Wednesday. Billionaire Thaksin, 74, was hospitalised with high blood pressure and chest tightness within hours of his dramatic return to Thailand in August from 15 years of self-imposed exile to serve an eight-year sentence for abuse of power. His sentence was commuted to a year following a royal pardon. The corrections department last week extended his stay in a police hospital, citing the need to monitor his health. “Based on the criteria, Thaksin qualifies for a special parole,” Corrections Department deputy director general Sitthi Sutivong told reporters in answer to a question on whether Thaksin could be released in February. Sitthi said his department had yet to receive an official request from the Bangkok Remand Prison for his parole. Thaksin was ousted from power in a 2006 military coup and has been at the Jailed Thai ex-PM Thaksin qualifies for parole next month Trump seeks to revive tough-onChina image with markets remark by Christian Hall Bloomberg by Panarat Thepgumpanat & Panu Wongcha-um Reuters heart of 17 years of on-off turmoil in Thailand, influencing politics from exile. Thaksin, a former telecoms tycoon and owner of Premier League football club Manchester City, was accused by the military of corruption, cronyism and abuse of power. He was sentenced to jail in absentia in 2008. His sister, Yingluck Shinawatra, was ousted as prime minister in another military coup in 2014. Thaksin received a rock star reception as a fugitive on his return to Thailand in August, with crowds cheering his arrival by private jet and policemen saluting him before escorting him to court and then jail. The same day, his ally and real estate mogul Srettha Thavisin was elected prime minister by parliament. Thaksin has repeatedly denied still being in politics and says he is retired. China had a crash yesterday in their stock market. You know why? Because I won Iowa.” reuters
thursday january 18, 2024 18 The E dge C E O m o rning brief world (Jan 17): UBS Group AG chairman Colm Kelleher said regulators pushing to increase capital at banks are looking in the wrong place to address the weaknesses in the financial system, as so-called shadow lenders are more likely to be the source of the next crisis. “Since that sector is not sufficiently regulated by definition, that is where you will probably see crises coming out,” Kelleher said at an event at Bloomberg House in Davos, Switzerland on Wednesday. “Looking to over-regulate the banks, looking for more capital in the banking system is the wrong issue,” he said. Wall Street lenders in particular are pushing back against the implementation of a set of rules set down after the last financial crisis, with US regulators looking to require banks to boost their capital cushions by almost 20%. Kelleher has previously warned of a bubble forming in the private credit market — an area with much less strict oversight than traditional banks. Kelleher signalled that he is in favour of enhanced regulation in UBS’ home market, and the government is currently formulating a new approach in the wake of the Credit Suisse crisis. Finance Minister Karin Keller-Sutter said Tuesday that she is backing giving Finma, the banking watchdog, the power to fine lenders and bring it into line with international peers. Yet, “the big message here is that there was clearly a failure by the board, management and the shareholders of Credit Suisse to hold Credit Suisse accountable,” he said. After a three-decade career at Morgan Stanley, Kelleher is now leading UBS through one of the biggest mergers in recent financial history, as the bank absorbs its former rival Credit Suisse. The Irishman has signalled that he is already looking beyond that task, aiming to boost the Zurich-based lender’s valuation and seeking potential successors to chief executive officer Sergio Ermotti. UBS chair says regulators look in wrong place for weakness WASHINGTON (Jan 17): The US Treasury Secretary Janet Yellen said on Wednesday that the US economy’s strong performance is evidence that President Joe Biden’s US$1.9 trillion (RM8.9 trillion) American Rescue Plan Act was the right approach in 2021 to avoid a slow and painful recovery from the Covid-19 pandemic. Yellen said in remarks to the US Conference of Mayors in Washington that what was the most dangerous back then “was in going too small” with recovery spending. “Many had argued that this Rescue Plan wasn’t needed. But I believe seeing where we are today vindicates the approach we took,” Yellen said in excerpts of her remarks. “GDP growth is strong and inflation has declined significantly. There are four million more jobs than before the pandemic.” Unemployment has remained below 4% for the longest period in 50 years and wage gains have been broadly shared, including by younger and less-educated workers, she added. By contrast, the recovery after the 2008- 2009 financial crisis was slow and painful, with higher unemployment. “Workers and families faced unemployment and economic hardship for too long, and it created scarring for a generation of American workers,” Yellen said. Yellen says US economic performance ‘vindicates’ heavy Covid-era spending StanChart CEO Winters warns US fiscal policy raises risk of debt buyer strike by David Lawder Reuters by Harry Wilson & Francine Lacqua Bloomberg by Myriam Balezou & Verena Sepp Bloomberg (Jan 17): Standard Chartered Plc chief executive officer Bill Winters said the US was running the risk of investors snubbing its debt as politicians fail to get a grip on the country’s ballooning deficit. “There is very little sign of fiscal discipline from either party right now, which is I think concerning, but reality finds ways of biting,” said Winters, speaking in a Bloomberg Television interview from the World Economic Forum in Davos. Winters said the US could be hit by “a little bit of a buyers’ boycott” if it didn’t get its house in order. “A failed auction would certainly be a message,” said Winters, while noting that the most plausible driver for an event like that would be new capital rules for banks that US regulators are planning to implement in the coming years. “The degree to which it hits the trading books, which would have the effect of withdrawing capital from a market which is already pretty stressed. So, I think that it’s much more likely to a technical thing than a fiscal thing,” said Winters. The budget deficit widened to US$510 billion (RM2.4 trillion) in the first quarter of the 2024 fiscal year, according to Treasury Department data published last week. Winters worked at JPMorgan Chase & Co for nearly three decades and co-ran its investment banking arm before leaving in 2009. He has led Standard Chartered since 2015, making him the longest serving boss of a major UK bank. bloomberg reuters
thursday january 18, 2024 19 The E dge C E O m o rning brief world (Jan 17): Opec forecast that global oil demand will continue to increase strongly next year and exceed growth in supplies, according to the group’s first detailed assessment of 2025. World consumption will swell by a “robust” 1.8 million barrels a day next year, driven by China and a recovering global economy, the Organization of Petroleum Exporting Countries said in its monthly market report. The forecast comes on the same day that the alliance’s top official published a rebuttal to predictions that oil demand is heading toward a peak. Opec sees rival supplies expanding by 1.3 million barrels a day next year. As a result, oil markets are set to remain in deficit through to the end of 2025 unless Saudi Arabia and its allies — which launched new production cuts this month — boost output significantly. “Peak oil demand is not showing up in any reliable and robust short- and medium-term forecasts,” Opec secretary general Haitham Al Ghais said in a separate statement, pushing back against expectations that climate change will cap the use of fossil fuels. Oil demand has surged in the past couple of years as the appetite for transport fuels bounced back from the pandemic, tempering hopes for a swift energy transition. But whether the boom in hydrocarbons will endure is a subject of great debate. The International Energy Agency, which advises major oil consumers, projects that demand will decelerate sharply this year, and ultimately peak this decade thanks to the adoption of renewable energy and electric vehicles. Brent crude has reflected estimates that oil supply growth is ahead of demand. Futures slumped almost 20% in the fourth quarter, and are holding near US$77 a barrel even as conflict in the Middle East and attacks in shipping in the Red Sea threaten supplies from a critical exporting region. Opec sees robust oil demand next year in first look at 2025 GENEVA (Jan 17): Global foreign direct investment flows could rise modestly in 2024 after a marginal increase last year due to higher investment in some EuroGlobal investment flows set for ‘modest’ rise in 2024, UN trade body says A huge crypto bet spawns the world’s top-performing ESG fund pean economies, the United Nations trade body said on Wednesday. Foreign direct investment flows can include investments made by companies or governments into other countries or companies or projects in those countries. “Looking ahead, a modest increase in FDI flows in 2024 appears possible, as projections for inflation and borrowing costs in major markets indicate a stabilisation of financing conditions for international investment deals,” the United Nations Conference on Trade and Development said. The UN trade organisation stressed, however, that many factors, including geopolitical risks and high debt levels in some countries, could hinder foreign direct investment. In 2023, foreign direct investment stood at an estimated US$1.37 trillion (RM6.4 trillion), a marginal increase of 3% compared with the previous year. UNCTAD attributed this slight increase to higher investment in some European countries. Foreign direct investment flows to developing countries declined last year, falling by 9% to US$841 billion, with a 12% drop in the developing countries of Asia and a 1% fall in Africa, UNCTAD said. by Gabrielle Tétrault-Farber Reuters by Sheryl Tian Bloomberg by Grant Smith Bloomberg Read also: Liquidity risks are worrying IMF amid high debt, Gopinath says Reuters (June 17): The world’s best-performing ESG fund of 2023 was built by Ark Investment Management LLC and powered by a huge bet on crypto. The US$2.4 billion (RM11.3 billion) Nikko AM Ark Positive Change Innovation Fund (ticker NIPCIPJ LX) returned 68% last year, more than double the gains delivered by the S&P 500. Its biggest holding was Coinbase Global Inc, which makes up almost a tenth of the fund, according to data compiled by Bloomberg. The Nikko-Ark fund is registered as “promoting” ESG under European rules. The outperformance caps a year in which investing in funds with environmental, social and governance themes has faced major headwinds. More conventional clean-tech ESG assets such as wind and solar tanked as capital-intensive projects in those sectors were upended by higher interest rates. But ESG funds that opted for other corners of tech fared much better. Last year’s 21% slump in the S&P Global Clean Energy Index coincided with an almost fivefold surge in the market value of Coinbase, the largest US crypto exchange. Crypto enthusiasts then started 2024 on a high after the US Securities and Exchange Commission moved ahead with its hotly anticipated approval of a number of Bitcoin exchange-traded funds. (Those Bitcoin gains have since evaporated in what some analysts say is a classic case of “buy the rumor, sell the fact.”) Thomas Hartmann-Boyce, a portfolio manager at Ark, said the SEC approval gives Coinbase shares “major room to run,” thanks to its position as “the leading custodian for those underlying Bitcoin assets.” Coinbase “is certainly our highest conviction name that falls within the digital assets category,” he said in an interview. Read the full story
thursday january 18, 2024 20 The E dge C E O m o rning brief world BOSTON (Jan 17): A federal judge on Tuesday blocked JetBlue Airways’ planned US$3.8 billion (RM17.83 billion) acquisition of ultra-low-cost carrier Spirit Airlines after agreeing with the US Department of Justice that the deal was anticompetitive and would harm consumers. The ruling by US District Judge William Young in Boston marked a victory for the Biden administration in its efforts to prevent further concentration of the US airline industry and raises questions about the viability of another recently proposed deal, Alaska Air’s planned acquisition of Hawaiian Airlines. The court’s ruling finding the deal violated US antitrust law also called into question Spirit’s future. The ultra-lowcost carrier has struggled to turn a profit amid a run-up in operating costs and persistent supply chain problems. Spirit’s shares closed down about 47% on Tuesday after the ruling was issued, while JetBlue shares ended about 5% higher. Young said that while a combined JetBlue-Spirit would likely place “stronger competitive pressure” on larger carriers that dominate the domestic airline market, “the consumers that rely on Spirit’s unique, low-price model would likely be harmed.” He said the deal would eliminate Spirit’s low fares and its ability to put pressure on other higher-priced airlines, including JetBlue, to cut prices. Rivals on average cut prices 7% to 11% when Spirit enters a market, he said. “The government has demonstrated that consumers value Spirit flights as a unique, economical product option,” Young wrote. “The removal of Spirit as an option for consumers, therefore, would constitute a cognizable harm.” US Attorney General Merrick Garland in a statement called the ruling “a victory for tens of millions of travellers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.” US judge blocks JetBlue from acquiring Spirit Airlines (Jan 17): Hong Kong Financial Secretary Paul Chan said he has no plans to impose a departure tax on residents, rejecting a proposal aimed at easing the government’s widening deficit. “I don’t think it’s something good for Hong Kong,” said in an interview with Bloomberg TV at the World Economic Forum in Davos on Wednesday. The pro-business Liberal Party made the proposal last week. Hong Kong residents are travelling to neighbouring Shenzhen and other mainland cities in record numbers to shop and dine, sparking concern from the local retail and service sectors. Hong Kong leader John Lee previously said the (Jan 17): Tesla Inc, opens new tab has slashed prices of its Model Y cars in Germany, a week after the carmaker reduced its Model 3 and Model Y prices in China. Tesla reduced prices for Model Y Long Range and Model Y Performance by €5,000 (RM25,644) to €49,990 and €55,990 respectively, representing a discount of 9% and 8.1% compared to the previous prices. It also cut the price of Model Y rear-wheel drive models by €1,900, or 4.2%, to €42,990 euros, according to data on its website. The latest price cut comes after Tesla announced last week that it would suspend most of its car production at its factory near Berlin from Jan 29 to Feb 11. The company blamed the suspension on the lack of components due to changes in transport routes because of attacks on vessels in the Red Sea. Germany’s electrical vehicle subsidy Hong Kong won’t impose departure tax, says finance chief Tesla cuts Model Y prices in Germany after China price cuts by Alan Wong & Haslinda Amin Bloomberg by Hyunjoo Jin Reuters by Nate Raymond, David Shepardson & Rajesh Kumar Singh Reuters Read also: Japan Airlines names former cabin attendant as first female president Read also: Renault swings to growth after four years of sluggish volumes government welcomes more cross-border travel but didn’t directly comment on the proposal when asked by reporters. Chan is set to announce his budget for the 2024-2025 financial year next month. He’s tasked with reviving a stagnant economy hurt by weak demand in China and geopolitical tensions. He warned in December that the city could face a deficit of more than HK$100 billion (RM60.4 billion) for the current year, double the HK$54.4 billion he initially forecast. Hong Kong has struggled to regain its appeal as a global travel destination since the city reopened in March last year from its self-imposed Covid isolation. Visitor numbers have risen but still trail pandemic levels. Visitor arrivals from mainland China — the biggest source of tourism — are about one-third lower than before the pandemic. China’s economic slump and weak currency are also weighing on consumption in Hong Kong. Latest official data shows a stagnant retail sales recovery in Hong Kong, which peaked in April at 88% of the 2018 level and was at 87% in November. A fragile recovery of growth in China and a downturn in Hong Kong’s property market were major drags. Chan said in the interview he expected Hong Kong’s economy to improve this year on expected cuts in interest rates and a stabilising Chinese economy. His government will keep the local real estate market “healthy” and its development in line with economic growth, he said. Chan left for Davos on Sunday night to attend the annual week-long World Economic Forum meeting. He has met with political and business leaders in a bid to drum up tourism and attract more global capital to the financial hub. programme, which was originally intended to apply until the end of 2024, ended prematurely last month, a move that was expected to hit German carmakers already struggling to bring down prices to levels offered by Chinese and US competitors. Bloomberg
thursday january 18, 2024 21 The E dge C E O m o rning brief world Google to help globalise India’s home-grown payments service Apple overtakes Samsung as top seller of smartphones Australia weighs mandatory restrictions on high-risk AI use by Yuvraj Malik Reuters by Ben Westcott Bloomberg by Satviki Sanjay Bloomberg (Jan 17): Apple ended Samsung Electronics’ 12-year run as the largest seller of smartphones in the world, after commanding a 20% share of the market in 2023, according to data from International Data Corp. Samsung ended the year with a 19.4% share, followed by China’s Xiaomi, Oppo and Transsion, preliminary data from IDC’s Worldwide Quarterly Mobile Phone Tracker showed. The change in ranking comes after a tough year that saw consumers going slow on smartphone upgrades due to broader macro uncertainty and high inflation. A slower-than-expected recovery in China, the world’s largest smartphone market, also weighed on overall phone sales. Apple and Transsion were the only brands in the top five to record growth in shipments last year, when the market declined 3.2% to 1.17 billion units and hit a decade low. Apple, however, is facing pressure in China from a resurgent Huawei as well as from budget Chinese brands. The iPhone-maker is offering rare discounts of as much as 5% on some models in the country to attract customers. (Jan 17): Alphabet Inc’s Google Pay will work with India’s mobile-based payments system that generates billions of transaction every month, to expand the services beyond the South Asian nation. Google India Digital Services Pvt Ltd and National Payments Corporation of India (NPCI), the company behind India’s Unified Payments Interface (UPI), signed an accord to broaden the services beyond India, according to a statement on Wednesday. The collaboration aims at making international payments convenient for travellers from India. It will also assist in establishing UPI-like digital payment systems in other countries. “This is in alignment with NPCI’s endeavour of bolstering India’s position in the global digital payment landscape,” the company said, adding that the accord will also contribute to simplifying remittances by cutting dependence on conventional money transfer channels. (Jan 17): Australia will consider introducing mandatory “guardrails” on the development of artificial intelligence (AI) as the government attempts to balance the productivity benefits of the new technology with potential fallout including the dissemination of disinformation. Minister for Industry and Science Ed Husic announced Wednesday plans to create a panel of experts to weigh options for restrictions on AI use and research. Among other regulations being considered are a voluntary safety standard for lowrisk applications and watermarks for AI-created content. “We do need to be able to have those mandatory guardrails that say these are the red lines you cannot cross,” Husic said at a press conference in Canberra. In his interim response to the review, the minister said the government had “heard loud and clear that Australians want stronger guardrails to manage higher-risk AI.” The government said it was clear from the review that voluntary restrictions on the development of AI were insufficient, with potential inaccuracies, biases and a lack of transparency among the risks flagged during the consultation. Husic said work will begin on the AI regulations “straight away” but declined to commit to the full suite of legislation being in place by year’s end. Across the world, the technology is seen as a driver of productivity and can benefit societies while also posing risks, including potentially aiding the spread of disinformation. In Australia, adopting AI and automation had been estimated to add as much as A$600 billion (RM1.86 trillion) a year to economic output by 2030. Read also: OpenAI is working with US military on cyber security tools Read the full story Reuters Prime Minister Narendra Modi’s government has been vocal on its ambitions to take UPI global. India and Singapore linked their systems last year to enable real-time money transfers. There were also tie-ups explored with countries including Sri Lanka and United Arab Emirates. The UPI platform saw 17.4 trillion rupees (US$209 billion) of transactions in November, according to latest data from India’s central bank.
thursday january 18, 2024 22 The E dge C E O m o rning brief world (Jan 17): Thailand’s planned US$14 billion (RM66 billion) cash-handout programme isn’t likely to meet the prime minister’s May target, as the economic stimulus faces objections from several state agencies. The Office of the National Anti-Corruption Commission opposes the so-called digital wallet programme, Deputy Finance Minister Julapun Amornvivat said Wednesday, without citing specific concerns. The plan was a centrepiece of Prime Minister Srettha Thavisin’s election campaign that enabled his Pheu Thai Party to form a ruling coalition late last year. The plan initially called for 10,000 baht to be wired to about 55 million Thai adults. Due to budget concerns, including from central bankers and opposition parties, the programme was scaled back to about 50 million people by excluding some high-income earners. “As of today, it looks like we can’t make it in time for May,” Julapun told reporters at the Thai parliament. “We are still committed to implement this project despite the delay.” Southeast Asian’s second-largest economy has posted average annual growth of about 1.9% over the past decade, trailing most regional peers. The current administration, which took office in the second half of 2023, has sought to boost consumer spending while also lobbying for lower interest rates. “When we say the nation is in crisis, it’s not only low growth but also people who are suffering out there,” the deputy finance minister said. While the administration remains committed to the digital-wallet programme, it will seek input from state agencies and other parties who oppose the project, Julapun said. The Council of State, which advises the administration on legal matters, earlier said the government has the authority to introduce a bill to finance the handouts. The concept of adding to the government’s debt load triggered a backlash from opposition parties, some former central bankers and economists on concerns about the fiscal deficit and inflation. The prime minister has prodded the central bank to cut interest rates, citing recent negative-inflation readings. He said small businesses and low-income earners need more help. Sretta met last week with Bank of Thailand governor Sethaput Suthiwartnarueput, who will lead a policy-rate meeting on Feb 7. Read also: Canned-tuna giant to book a US$530 mil charge for exiting Red Lobster Thailand’s plan to hand out US$14 bil faces delay on concern about spending rules, inflation JAKARTA (Jan 17): Indonesia’s central bank kept policy rates steady on Wednesday to stabilise the rupiah and keep inflation within target, but said it would be patient over its next moves, with room to cut rates dependent on the currency. Bank Indonesia (BI) left unchanged its benchmark seven-day reverse repurchase rate at 6%, where it has been since October, as unanimously expected by economists surveyed by Reuters. Its two other policy rates were also unchanged. Global market uncertainty has eased, Governor Perry Warjiyo said, helping the rupiah stabilise and even showing tendency to strengthen as a tightening cycle by advanced economies is seen ending. The central bank predicts the US Federal Reserve (Fed) starting easing in the second half this year, totalling 75 basis points. Asked about room for BI to start easing, the governor said that would depend on how quickly the rupiah can strengthen, the inflation rate, and economic growth. “We will remain patient to monitor domestic and global conditions,” Warjiyo said. The rupiah was unchanged after the announcement to keep rates steady and traded around 15,640 per dollar on Wednesday, down 0.34% from a day earlier. Indonesia’s central bank keeps rates unchanged, to be patient on easing BI targets inflation at a range of 1.5% to 3.5% in 2024, below 2023’s target of 2% to 4%. Indonesia’s economic activities slowed last year amid declining exports and weakening household spending. Gross domestic product (GDP) growth in the third quarter was at its weakest in two years. BI maintained its forecast that growth in Southeast Asia’s biggest economy would pick up in 2024 to within a range of 4.7% to 5.5%, from 2023’s forecast of 4.5% to 5.3%, on rising spending for an election and as the current government rushes to finish infrastructure projects. With inflation staying within target, most economists have predicted BI’s next move will be a cut, though some disagree on the timing, which may depend on the rupiah exchange rate’s stability. “The central bank is unlikely to have any impetus to provide dovish guidance or bring forward policy easing, until clarity emerges on the exogenous developments,” said DBS economist Radhika Rao. Bank Danamon forecast a 50-basis point cut by BI this year. Its economist Irman Faiz said the central bank has reached its terminal rate but “BI’s leeway for rate cuts this year may not match the extent of the Fed’s adjustments, considering the anticipated widening trend of the current account deficit”. by Gayatri Suroyo & Stefanno Sulaiman Reuters by Suttinee Yuvejwattana Bloomberg reuters
thursday january 18, 2024 23 The E dge C E O m o rning brief world (Jan 17): Hong Kong residents no longer have the world’s longest life expectancies, with the city relinquishing its crown to Japan as Covid-19 and overall stress weighs on local lifespans. Women in Hong Kong were expected to live until 86.8 years old on average in 2022, compared with 87.1 for their Japanese counterparts, according to the latest statistics published this week by the city’s government. Data for 2023 has not yet been released. Life expectancy for men in the Asian financial hub was 80.7 — the same as in Singapore, but shorter than Sweden, Japan and Norway, the data show. For years, Hong Kong consistently topped global longevity surveys — ever since overtaking Japan in the early 2000s. But residents are growing increasingly stressed out, with physical and mental health deteriorating in recent years amid social unrest and the pandemic. In a recent survey from insurance provider Cigna Group, Hong Kong residents reported the lowest levels of physical, mental, social and occupational wellbeing among 12 markets including the US, the UK, mainland China and Singapore. Top stressors in the city included its high cost of living and uncertainty about the future. Hong Kong no longer has the world’s longest life expectancy (Jan 17): China’s population extended a historic decline in 2023 as deaths rose after Beijing ended strict pandemic curbs and births continued to fall. China recorded 11.1 million deaths, some 690,000 higher than the previous year’s 10.41 million, according to data released by the National Statistics Bureau on Wednesday. The increase is likely due to a swell in Covid-related fatalities in the months after authorities abandoned their Covid Zero strategy in December 2022 and led to an explosion of infections. The government didn’t say how many people died from Covid and related causes. HONG KONG (Jan 17): The first prosecution witness to testify in a landmark national security case against Hong Kong media tycoon Jimmy Lai said on Wednesday he had been instructed by Lai to call people to join protests in 2019 and draw the attention of Western democracies. The witness, Cheung Kim-hung, said Lai believed a proposed law that would allow people in Hong Kong to be sent to China to face trial in courts controlled by the Communist Party would be used to crackdown on the territory’s democracy and freedoms. The bill was later withdrawn by the government. But mass demonstrations over the bill evolved into pro-democracy protests that rocked the city for months. Lai, 76, founder of the now defunct pro-democracy tabloid Apple Daily, has pleaded not guilty to two charges of conspiracy to collude with foreign forces and a lesser charge of conspiracy to publish seditious material. For years an outspoken critic of China’s Communist Party, Lai is the highest profile figure to face prosecution under the security laws that Beijing imposed on the financial hub in 2020. An independent study published in August estimated the unexpected Covid exit caused 1.9 million excess deaths in two months. The number of people in the world’s second-largest economy fell for a second year by 2.08 million to 1.41 billion in 2023. The Chinese population started shrinking in 2022 for the first time since 1961, the final year of the Great Famine under former leader Mao Zedong. A total of 9.02 million babies were born in 2023, a new low on record. The number of newborns has been declining steadily since the 1960s barring a brief uptick in 2016, when the government relaxed the one-child policy to allow families nationwide to have two kids. China is among East Asian countries struggling to reverse a drop in birth rates, which could reduce the size of the workforce that drives growth and funds pension systems. South Korea’s total fertility rate — the number of babies expected per woman — fell to 0.72 in 2023, the world’s lowest, and could plunge further to 0.65 next year. China population extends record drop on Covid deaths, low births First prosecution witness testifies against Jimmy Lai in Hong Kong Bloomberg by Shirley Zhao Bloomberg by Jessie Pang & Edward Cho Reuters Read the full story The first prosecution witness testified on Wednesday that Hong Kong media tycoon Jimmy Lai (picture) instructed him to call people to join protests in 2019 and draw the attention of Western democracies. reuters Women in Hong Kong were expected to live until 86.8 years old on average in 2022, compared with 87.1 for their Japanese counterparts, according to the latest statistics published this week by the city’s government. Bloomberg
thursday january 18, 2024 24 The E dge C E O m o rning brief world MILAN (Jan 17): Italy’s government has cleared Telecom Italia’s (TIM) planned sale, worth up to 22 billion euros (US$23.92 billion), of its fixed-line network to US fund KKR under the so-called golden power rule, the telecoms group said on Wednesday. TIM said the approval came after the companies made commitments which the government deemed to “be fully adequate to guarantee the protection of the strategic interests connected with the assets involved in the transaction”. In a separate statement, the government said the proposed commitments ensure that the Italian administration will have the power to oversee the newly-created network company in areas concerning national security and defence. The commitments, which the government made obligatory, include the creation of a security task force overseeing the network company and the pledge to maintain all activities linked to the maintenance and the monitoring of the infrastructure in Italy, the government said. Golden power legislation allows Italy to intervene in deals that involve sectors considered strategic, such as banking, energy and telecommunications. Italy’s former phone monopoly agreed in November to sell its prized landline grid to the US fund, in a landmark deal that is aimed at significantly reducing TIM’s debt and staff. While supported by the Italian government, which plans to take a 20% stake in the network company, the deal is being challenged in court by top TIM investor Vivendi. TIM expects to finalise the deal by the middle of the year. Italy government clears Telecom Italia network sale to KKR (Jan 17): AirTrunk’s owners are planning to kick off a process to sell the Australian data centre operator, people familiar with the matter said, in what could be one of Asia Pacific’s biggest digital infrastructure deals this year. AirTrunk’s backers including Macquarie Asset Management and PSP Investments could seek a valuation of about A$12 billion (US$7.9 billion) in a potential sale, one of the people said, asking not to be identified because the matter is private. Other options include selling a controlling or partial stake, the people said. A formal sale process could start as early as the coming weeks, the people said. Private equity firms and infrastructure-focused funds have shown preliminary interest in the asset, one of them said. No final decision has been made and the owners of AirTrunk could still decide against a transaction, the people said. A representative for Macquarie declined to comment. PSP and AirTrunk didn’t immediately respond to requests for comment. Bloomberg News reported in October that AirTrunk had been working with Goldman Sachs Group Inc and Macquarie Group Ltd to explore options to fuel its growth, including a minority stake sale. AirTrunk runs data centres in Australia, Singapore, Hong Kong, Japan and Malaysia, its website shows. A group led by Macquarie’s infrastructure arm took control of the company in 2020, in a deal that valued it at about A$3 billion, Bloomberg News reported at that time. Prior to that, it was owned by investors including Goldman’s special situations division. Macquarie said to be preparing for sale of US$8 bil AirTrunk LG Chem sees battery industry still robust despite slowdown by Manuel Baigorri & Gillian Tan Bloomberg by Heejin Kim & Heesu Lee Bloomberg by Elvira Pollina Reuters (Jan 17): LG Chem Ltd sees the battery industry growing as much as 25% this year, delivering strong returns even as global demand eases from previous highs, according to its chief executive officer. “Those businesses are growing still by leaps and bounds even though people are talking about some slowdown,” Shin Hak Cheol said in an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland. “It is still very robust growth that we are looking at,” he said, referring to the production of cathodes, separators and additives. The company, which also runs petrochemicals and healthcare businesses, is the parent of LG Energy Solution Ltd, which provides batteries to electric-vehicle (EV) makers General Motors Co and Tesla Inc. In its latest earnings report, the unit missed analyst estimates for fourth-quarter profit amid weaker demand for EVs. LG Chem last month started construction of a cathode plant in Clarksville, Tennessee, with total investment to top US$3 billion (RM13.93 billion) by 2027. It aims to make the facility the largest plant in the US, with capacity to produce enough cathode materials for 600,000 EVs a year. Shin said the company is investing US$10 billion in the areas of sustainable materials, batteries and pharmaceuticals. He added that LG Chem is also looking into potential mergers and acquisitions in those areas, though didn’t specify a time frame. The company, he said, is “looking for long-term strategic direction”. bloomberg bloomberg
thursday january 18, 2024 25 The E dge C E O m o rning 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) Leform Bhd 469.10 -0.095 0.175 -60.23 259.2 Sarawak Consolidated 202.50 -0.300 0.535 -42.78 342.5 Mercury Securities Group Bhd 135.40 -0.295 0.455 -34.53 406.3 Minetech Resources Bhd 130.20 0.015 0.170 17.24 299.5 Ekovest BHD 103.70 0.000 0.560 14.29 1,660.6 Bina Puri Holdings BHD 83.00 -0.005 0.075 -11.76 253.0 Mestron Holdings Bhd 76.00 -0.150 0.315 -28.41 314.4 Widad Group Bhd 66.20 -0.005 0.490 1.03 1,517.3 Fintec Global Bhd 65.40 0.000 0.010 0.00 59.2 Malayan United Industries Bhd 61.80 -0.005 0.055 -8.33 177.4 Top Glove Corp Bhd 54.70 -0.025 0.905 0.56 7,247.4 Malaysian Resources Corp Bhd 51.80 0.010 0.520 16.85 2,323.1 Kinergy Advancement Bhd 50.70 -0.015 0.405 3.85 787.7 TWL Holdings Bhd 48.80 -0.005 0.035 16.67 174.2 Sarawak Cable Bhd 47.70 -0.010 0.215 -42.67 85.8 YTL Power International Bhd 45.00 0.130 3.780 48.82 30,626.1 Eastern & Oriental Bhd 41.50 0.030 0.895 55.65 1,645.4 Tanco Holdings Bhd 39.60 0.000 0.655 11.02 1,325.8 My EG Services Bhd 37.50 -0.010 0.785 -3.68 5,855.7 YTL Corp Bhd 36.70 0.030 2.320 22.75 25,437.4 Data as compiled on Jan 17, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) SC Estate Builder Bhd 0.020 50.04 17,887.8 28.57 64.4 PBA Holdings BHD 2.290 23.12 17,975.8 56.85 758.0 Xidelang Holdings Ltd 0.035 16.67 4,779.6 40.00 74.1 Nexgram Holdings Bhd 0.040 14.29 965.9 -11.11 26.5 mTouche Technology Bhd 0.050 11.11 2,581.7 0.00 46.3 Protasco Bhd 0.250 11.11 5,853.1 6.38 120.4 Tri-Mode System M Bhd 0.380 10.14 2.1 20.63 63.1 Minetech Resources Bhd 0.170 9.68 130,241.2 17.24 299.5 Bertam Alliance Bhd 0.130 8.33 54.6 -13.33 41.9 Astro Malaysia Holdings Bhd 0.405 8.00 20,070.2 2.53 2,113.7 Sentoria Group Bhd 0.075 7.14 1,555.1 -16.67 46.0 Mentiga Corp BHD 0.695 6.92 4.2 -0.71 48.7 Asia Poly Holdings Bhd 0.080 6.67 1,969.4 0.00 76.7 REDtone Digital Bhd 0.835 6.37 9,376.0 19.29 645.4 Meta Bright Group Bhd 0.180 5.88 6,804.9 -10.00 430.8 Cekd Bhd 0.480 5.49 380.3 7.87 93.4 PESTECH International Bhd 0.300 5.26 15,652.5 -7.69 295.4 MSM Malaysia Holdings Bhd 1.830 5.17 3,847.0 13.66 1,286.5 Flexidynamic Holdings Bhd 0.210 5.00 141.6 5.00 59.8 Supercomnet Technologies 1.270 4.96 2,891.4 4.10 1,008.2 Data as compiled on Jan 17, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Key Alliance Group Bhd 0.005 -50.00 19,435.3 -50.00 18.4 Mercury Securities Group Bhd 0.455 -39.33 135,443.1 -34.53 406.3 Artroniq Bhd 0.495 -37.74 17,307.2 -42.77 201.9 Sarawak Consolidated 0.535 -35.93 202,497.5 -42.78 342.5 Leform Bhd 0.175 -35.19 469,113.1 -60.23 259.2 AE Multi Holdings Bhd 0.010 -33.33 387.6 -33.33 21.6 Mestron Holdings Bhd 0.315 -32.26 76,002.7 -28.41 314.4 Rapid Synergy Bhd 3.960 -29.91 1,847.3 -86.10 423.3 YNH Property Bhd 1.220 -29.48 1,475.7 -71.29 644.8 TECHNA-X Bhd 0.015 -25.00 31,752.0 0.00 33.2 Hong Seng Consolidated Bhd 0.015 -25.00 9,945.0 -40.00 76.6 APB Resources Bhd 2.050 -17.67 1,212.5 -20.85 227.3 Saudee Group Bhd 0.025 -16.67 20,113.0 0.00 39.0 Alam Maritim Resources Bhd 0.025 -16.67 367.0 -16.67 38.3 G3 Global Bhd 0.025 -16.67 244.4 0.00 94.3 Vinvest Capital Holdings Bhd 0.055 -15.38 8,518.6 -8.33 53.3 XOX Networks Bhd 0.030 -14.29 1,615.5 -14.29 34.1 Zelan Bhd 0.060 -14.29 10,432.6 -25.00 50.7 Timberwell BHD 0.520 -13.33 107.7 -1.89 46.3 TWL Holdings Bhd 0.035 -12.50 48,771.3 16.67 174.2 Data as compiled on Jan 17, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Rapid Synergy Bhd 3.960 -1.690 1,847.3 -86.10 423.3 YNH Property Bhd 1.220 -0.510 1,475.7 -71.29 644.8 APB Resources Bhd 2.050 -0.440 1,212.5 -20.85 227.3 Heineken Malaysia Bhd 24.060 -0.360 106.8 -0.33 7,268.5 Sarawak Consolidated 0.535 -0.300 202,497.5 -42.78 342.5 Artroniq Bhd 0.495 -0.300 17,307.2 -42.77 201.9 Mercury Securities Group Bhd 0.455 -0.295 135,443.1 -34.53 406.3 BLD Plantation Bhd 10.920 -0.280 0.5 -0.73 1,021.0 Petronas Dagangan Bhd 20.900 -0.220 390.7 -4.30 20,763.2 Allianz Malaysia Bhd 19.900 -0.200 129.5 7.92 3,541.6 Globetronics Technology BHD 1.490 -0.190 21,713.3 -8.02 1,005.4 Paragon Union BHD 3.000 -0.190 179.0 7.53 251.5 Hong Leong Capital Bhd 4.040 -0.180 3,357.0 -11.21 997.5 Jentayu Sustainables Bhd 1.140 -0.160 26,737.9 -11.63 500.4 Kluang Rubber Co Malaya BHD 4.690 -0.150 74.5 29.56 291.6 Press Metal Aluminium 4.850 -0.150 3,742.6 0.83 39,962.1 Mestron Holdings Bhd 0.315 -0.150 76,002.7 -28.41 314.4 Imaspro Corp Bhd 1.230 -0.140 10,023.6 -67.89 98.4 Petronas Chemicals Group 6.760 -0.120 3,219.4 -5.59 54,080.0 Petronas Gas Bhd 17.440 -0.120 564.4 0.23 34509.1 Data as compiled on Jan 17, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) PBA Holdings BHD 2.290 0.430 17,975.8 56.85 758.0 United Plantations BHD 19.300 0.340 688.5 8.43 8,005.4 Fraser & Neave Holdings Bhd 29.000 0.240 141.3 2.98 10,636.6 YTL Power International Bhd 3.780 0.130 45,042.0 48.82 30,626.1 Malaysia Airports Holdings 7.720 0.120 3,491.7 4.89 12,881.2 Kotra Industries Bhd 4.850 0.100 2.7 0.41 719.3 MSM Malaysia Holdings Bhd 1.830 0.090 3,847.0 13.66 1,286.5 AFFIN Bank Bhd 2.450 0.070 4,527.6 17.79 5,748.9 Padini Holdings Bhd 3.560 0.060 249.4 1.42 2,342.2 APM Automotive Holdings Bhd 2.850 0.060 60.3 14.00 557.2 Sime Darby Bhd 2.490 0.060 20,100.9 5.96 16,970.8 Supercomnet Technologies 1.270 0.060 2,891.4 4.10 1,008.2 REDtone Digital Bhd 0.835 0.050 9,376.0 19.29 645.4 Chin Hin Group Bhd 3.650 0.050 54.1 3.40 6,458.4 New Hoong Fatt Holdings Bhd 3.410 0.050 5.7 3.65 281.9 Mentiga Corp BHD 0.695 0.045 4.2 -0.71 48.7 HSS Engineers Bhd 1.170 0.040 7,086.0 20.62 580.3 AME Elite Consortium Bhd 1.840 0.040 581.2 10.18 1,175.9 KLCCP Stapled Group 7.240 0.040 336.7 2.12 13,070.6 Teo Seng Capital Bhd 1.840 0.040 1,410.0 15.00 539.7 Data as compiled on Jan 17, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 37,361.12 -104.99 -0.28 S&P 500 * 4,765.98 68.74 1.46 NASDAQ 100 * 16,830.71 524.73 3.22 FTSE 100 * 7,434.39 -255.22 -3.32 AUSTRALIA 7,393.08 -95.99 -1.28 CHINA 2,833.62 -95.57 -3.26 HONG KONG 15,276.90 -1,258.43 -7.61 INDIA 71,506.82 -519.33 -0.72 INDONESIA 7,200.64 -149.98 -2.04 JAPAN 35,477.75 2,100.33 6.29 KOREA 2,435.90 -142.18 -5.51 PHILIPPINES 6,572.51 -57.13 -0.86 SINGAPORE 3,142.22 -42.08 -1.32 TAIWAN 17,161.79 -357.35 -2.04 THAILAND 1,380.65 -47.31 -3.31 VIETNAM 1,162.53 7.85 0.68 Data as compiled on Jan 17, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,815.002.61 OIL US$ 76.71-0.43 RM/USD 4.7172 RM/SGD 3.5101 RM/AUD 3.0912 RM/GBP 5.9822 RM/EUR 5.1312
CEOMorningBrief THURSDAY, JANUARY 18, 2024 ISSUE 704/2024 theedgemalaysia.com H O W T O E N T E R Download entry forms on bmspa.theedgemalaysia.com For enquiries, contact The Edge Corporate Communications at: BMSPA@bizedge.com S U B M I S S I O N D E A D L I N E All entries must reach The Edge Communications Sdn Bhd, Lobby Level, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor by 5pm, Wednesday, 21 February 2024 Awards results audited by Deloitte AWA R D S O B J E C T I V E Promote sustainable real estate in Malaysia through recognition of: • Malaysia’s best property management practices • Property in Malaysia designed and built for sustainability NO W OPEN fO R ENTRIES ( No F ees required ) • All Residential, Office, Mixed Development, Specialised and Retail properties managed in-house/by property building managers • Strata and Non-strata buildings • Re-purposed buildings ALSO OPEN fOR SUBMISSION ( No F ees required ) • The Edge Malaysia’s responsible developer: Building sustainable development Award • The Edge-iLAM Malaysia’s sustainable Landscape Award Enter now! PRESENTED By MAiN PARTNER SUPPORTED By
PROPERTY MANAGEMENT VIRTUAL TALK 2024 Chief Judge The Edge Malaysia Best Managed and Sustainable Property Awards (BMSPA) Au Foong Yee Editor Emeritus, The Edge Malaysia Members Of the Judging Panel The Edge Malaysia Best Managed and Sustainable Property Awards (BMSPA) Chris Tan Managing Partner Chur Associates Anthony Lee Tee Accreditated Building Inspector and Trainer Architect Centre Sdn Bhd Datuk NK Tong President REHDA Malaysia 9.30AM — 11.30AM 9.30AM — 11.30AM From Hero to Zero: Buying Ill-Designed Strata Commercial Property JANUARY 19, 2024 FRIDAY A Legal Nightmare Chris Tan Managing Partner Chur Associates Maintenance Horror Anthony Lee Tee Accreditated Building Inspector and Trainer Architect Centre Sdn Bhd Datuk NK Tong President REHDA Malaysia Anthony Lee Tee Accreditated Building Inspector and Trainer Architect Centre Sdn Bhd Chris Tan Managing Partner Chur Associates Moderator Au Foong Yee Editor Emeritus, The Edge Malaysia Fireside Chat Costly to Judge a Book by its Cover RegisteR NOW At https://myevents.theedgemalaysia.com First come, First served basis * Terms & conditions apply. Datuk NK Tong President REHDA Malaysia Anthony Lee Tee Accreditated Building Inspector and Trainer Architect Centre Sdn Bhd Chris Tan Managing Partner Chur Associates Moderator Au Foong Yee Editor Emeritus, The Edge Malaysia Fireside Chat Beauty is Only Skin Deep How to Destroy Your Housing Property Value Get it Right from the Start! Chris Tan Managing Partner Chur Associates Myths vs Reality Anthony Lee Tee Accreditated Building Inspector and Trainer Architect Centre Sdn Bhd JANUARY 20, 2024 SATURDAY
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 THURSDAY JAN 18, 2024 SCAN ME No. 8439 PP 2644/12/2012 (031195) Increase necessary to ensure sustainability of water service industry in long term and continuity of quality services, says National Water Services Commission. Report on — page 3 Quality and relevance should outweigh quantity in ensuring homework serves its intended purpose while tailoring assignments that spark genuine interest: Expert Report on — page 4 Malaysians looking for jobs overseas to get quick money should exercise caution to avoid falling victim to scams, fraud or drug dealers out to recruit couriers or transporters for packages and documents containing drugs: MP Report on — page 3 CELESTIAL THEME ... Models posing yesterday at the main concourse of Sunway Putra Mall in Kuala Lumpur, that has been decked out with a grand Chinese New Year display. – AMIRUL SYAFIQ/THESUN ‘Don’t become unwitting drug mules’ Elusive wildlife traders Report on — page 2 Widespread use of social media and strict privacy controls make it challenging to track perpetrators of illegal trade in exotic animals, says National Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad. Water tariff adjustment to take effect on Feb 1 ‘Make homework more effective, less burdening’
THURSDAY | JAN 18, 2024 2 Three M’sian women honoured in Forbes Asia 2024 list SINGAPORE: Three Malaysian women have made it to the Forbes 50 Over 50: Asia 2024 list, which features 50 inspirational women in Asia-Pacific who have proven that the new golden age is after age 50. The three who have made Malaysia proud are Asia-Pacific Economic Cooperation (Apec) secretariat executive director Tan Sri Dr Rebecca Fatima Sta Maria, prominent lawyer and human rights advocate Datuk Ambiga Sreenevasan and Current Pictures founder and film director Tunku Mona Riza Tunku Khalid. According to Forbes, the women of the third annual 50 Over 50: Asia list hail from 14 countries and territories and more than two dozen work sectors. Sta Maria, 65, who was appointed Apec secretariat executive director in 2019, is the first woman to lead the 21- member inter-governmental economic advisory body. She spent a decade serving as deputy secretary-general of the International Trade and Industry Ministry before becoming its secretary-general and lead trade negotiator. She has also represented the region at the World Economic Forum and previously was a non-executive director for RHB Bank. According to Forbes, Sreenevasan, 67, earned the Ruth Bader Ginsburg Medal of Honor and the Gandhi Memorial Trust Public Service Award last year. As the Malaysian Bar Council’s second female president, she orchestrated the influential “March for Justice” and chaired Bersih 2.0, advocating free and fair elections. A founding member of the Women’s Aid Organisation, she now serves as president of the Pure Life Society, a charitable home for orphans and the underprivileged. She holds a law degree from the University of Exeter, United Kingdom. Tunku Mona Riza, 57, won the award for the Most Promising Director for Redha at the Malaysia Film Festival 2017. Inspired by a true story, the film depicts the challenges of raising an autistic child and was selected as the country’s entry for Best Foreign Language Film at the 89th Academy Awards. Her 2023 film, Rain Town, is Malaysia’s first Chinese-language film by a Malay female director. Premiering in February 2024, it was screened at last year’s Vancouver Asian Film Festival and the International Film Festival of India in Goa. – Bernama Johor mulls installing CCTV at mosques, surau BATU PAHAT: The Johor government will consider a proposal to instal closed circuit television cameras (CCTV) in mosques and surau in the state for security purposes, said state Islamic Religious Affairs Committee chairman Mohd Fared Mohd Khalid. He said the proposal is a good move, but requires the agreement of all parties as it needs certain allocations. He added that most mosques and surau, especially in rural areas, do not have these facilities but the public could do voluntary patrols in the meantime. “The proposal to instal CCTVs is a good step, which the state government needs to consider. Allocations have to be sought, and if approved they must be expedited to curb acts that can cause damage.” Earlier, he visited the Kampung Parit Simis Darat Mosque and Surau Ar Raudah in Kampung Parit Bangas in Sri Medan, near here, which caught fire on Jan 14 and Jan 15 respectively, believed to be the result of mischief by irresponsible individuals. On Sunday, 50% of Kampung Parit Simis Darat Mosque was destroyed in the 10.50pm fire, including carpets, prayer mats, four units of air conditioners, two wall fans as well as the pulpit. The following day, Surau Ar Raudah also caught fire, causing damage to part of the carpet, two units of air conditioners, furniture and electrical wiring. Investigations into both cases are being carried out under Section 436 of the Penal Code. Meanwhile, Johor police did not rule out the possibility of foul play in both incidents. State police chief Datuk Kamarul Zaman Mamat said the fires are believed to have been caused by the same individual, based on a preliminary investigation. “We have opened investigation papers,” he said at a media conference at the state contingent police headquarters yesterday. – Bernama Pahang Regent visits Sarawak KUCHING: The antics of Seduku, a playful orangutan enjoying its meal at the Semenggoh Wildlife Centre, caught the attention of the Regent of Pahang Tengku Mahkota Tengku Hassanal Ibrahim Alam Shah Ibni Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah during a visit to the centre. The Regent was welcomed on arrival by state Urban Planning, Land Administration and Environment Deputy Minister Datuk Len Talif Salleh. Sarawak Deputy Transport Minister (Aviation and Road) Datuk Dr Jerip Susil and state Utilities and Telecommunications Deputy Minister Datuk Dr Abdul Rahman Junaidi accompanied him during the visit. Tengku Hassanal, who is on a five-day visit to Sarawak, was briefed on forest and national park protection by the Sarawak Forestry Corporation CEO Abang Arabi Abang Aimran at the centre yesterday. He was also given a briefing on Sarawak’s Climate Change and Net Zero Strategy by state Energy and Environmental Sustainability Ministry permanent secretary Abang Ahmad Abang Morni. – Bernama Action taken on illegal online wildlife trade KUALA LUMPUR: The Wildlife and National Parks Department recorded 654 cases involving illegal online sale of exotic wildlife between 2020 and 2023 through various social media platforms, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad. He was responding yesterday to theSun’s report on Jan 12, which highlighted that wild animals such as slow loris, prairie dogs, crested goshawks, barn owls, sun bears and Bengal cats were being sold online at prices ranging from RM350 to RM4,000 each. Other wildlife, such as marmosets and dusky leaf monkeys, were sold for between RM800 and RM2,100 each. “Common methods used by online sellers to trade in wildlife include cash on delivery, using courier services and public transportation. Currently, sales also involve third parties through ‘dropshipping’, where individuals earn commissions on the sale of oDept records over 650 cases involving sales done through social media platforms between 2020 and 2023, says minister █ BY SIVANISVARRY MORHAN newsdesk@thesundaily.com wildlife without physically handling the animals,” he said. “Primate species were the most traded, accounting for 215, followed by small mammals and birds. “The illegal online wildlife trade involves licensed and unlicensed sellers, and illegal hunters, breeders, and syndicates. “However, the widespread use of social media and strict privacy controls make it challenging to track the perpetrators of the illegal trade in exotic wild animals,” said Nik Nazmi. He said the department took action in 58 cases of online wildlife sales from 2015 to 2023. He added that of these, 25 cases have since been resolved, while the remaining are under investigation or prosecution. Nik Nazmi said one notable case that garnered public attention last year, involved a restaurant patron who uploaded a video featuring the meat of a saltwater crocodile, commonly known as copper crocodile. “The case was investigated under Section 68 (1)(b) of the Wildlife Conservation Act 2010 [Act 716] for unlawfully possessing parts of a copper crocodile without a special permit.” Nik Nazmi said in another case, a social media video showed an individual with a collection of Malayan tiger skins at a premises in Kuala Lumpur. He added that the case was investigated under Section 68 (2)(c) [Act 716] for possession of Malayan Tiger skins without a special permit. Nik Nazmi said the wildlife department has implemented various measures to address the growing illegal trade in wildlife. “This includes strengthening legislation through amendments to Act 716 by adding specific provisions, increasing penalties to a maximum of 15 years’ jail and a maximum fine of RM1 million as a deterrent.” Nik Nazmi added that under the International Trade in Endangered Species Act 2008 (Act 686), the illegal import and export of wildlife without a permit could result in a maximum fine of RM1 million or imprisonment for up to seven years or both for individuals and a maximum fine of RM2 million for corporate bodies. “To enhance the effectiveness of efforts to combat wildlife crimes, the department also collaborates with enforcement agencies such as police, customs department, immigration, CyberSecurity Malaysia and the Malaysian Communications and Multimedia Commission. “The ministry urges the public to lodge reports with the department through its hotline at 1-800-88-5151 or through e-complaints on its website at www.wildlife.gov.my.” Tengku Hassanal receiving a memento from Sarawak Premier Tan Sri Abang Johari Abang Openg at a dinner held in Kuching in conjunction with the Regent’s visit. – BERNAMAPIC
THURSDAY | JAN 18, 2024 3 PUTRAJAYA: The water tariff adjustment for domestic consumers in the Peninsular and the Federal Territory of Labuan will take effect on Feb 1, involving an average increase of 22 sen per cubic metre, according to the National Water Services Commission. The adjustment will be implemented under the Tariff Setting Mechanism, in which the structure and components are standardised for states in the Peninsular and Labuan, with the option to be reviewed every three years to ensure consistency in the determination of charges. The commission said in a statement yesterday the adjustment could no longer be delayed so as not to affect the sustainability of the water service industry in the long term, and impacting the quality of water supply services. “This increase is still low and cannot cover the actual cost of providing water, which is RM1.75 per cubic metre based on 2022 records.” To minimise the impact of the increase, the commission recommended water supply operators in the respective states continue with existing initiatives by assisting domestic consumers in a targeted manner, such as granting rebates to the B40 group. It added that through the tariff review, water operators would be more prepared to make continuous investments to develop the infrastructure of the water supply system, which includes construction or upgrading of water treatment plants and replacing old pipes. This is in addition to carrying out regular maintenance and dealing with complaints more efficiently to ensure continuity of water supply services and meeting consumer expectations. It also called on consumers to practice prudent water use, including using products under its “Water-Efficient Product Labeling Scheme”, repairing any leaking pipes and faucets as well as installing rainwater harvesting systems and using recycled water as an alternative source for non-drinking purposes. – Bernama Concern over plight of drug mules held abroad KUALA LUMPUR: As the Lunar New Year approaches, DAP Seputeh MP Teresa Kok has warned Malaysians to beware of scammers offering jobs abroad. “There has been a surge in offers and promotions for Malaysians to work overseas for quick money. This often involves becoming couriers or transporters for packages or documents laden with drugs. “The government, particularly the ministries of Home Affairs and Communications, have consistently emphasised the need to exercise caution and avoid falling victim to scams, fraud and drug recruiters. “But unfortunately, some Malaysians who are in dire financial situations and too trusting, often fall prey to these unscrupulous individuals who are waiting to exploit them for their illegal activities.” Kok said while a person’s innocence or guilt can only be established in court, it is imperative to ensure accused individuals have access to information, legal counsel and justice, adding that the right to be heard in court must be upheld. She also said the crucial question is whether Malaysians detained abroad receive information and advice from our embassies and consular offices regarding their right to counsel. “Are their families immediately notified of their detention? In many cases, families were unaware of the detention of their loved ones abroad until after they receive such information through social media platforms.” Kok said a recent report highlighted the case of a priest, Father John Wotherspoon, who acts as an intermediary between Malaysians and their family members who have become unsuspecting drug mules and are currently held in Hong Kong prisons. “There was a notable surge in cases involving such Malaysians in 2023. At least 40 were exploited, which is alarming. One case involved a 16-year-old girl who was lured into drug trafficking with promises of a ticket to Hong Kong and RM2,000 in spending money. “Her family had no news on her whereabouts for almost two months until they received a call from Hong Kong Correctional Services.” She said questions have arisen about whether the Malaysian Consulate General in Hong Kong knew of her whereabouts and the mechanisms for sharing government-togovernment information on citizens in another country. “It is essential to improve communication and information-sharing between embassies and relevant authorities,” she said, adding that investigative journalism revealed Malaysian drug mules were sent to various countries. “It is crucial for embassies to act swiftly in obtaining updated information on Malaysians detained abroad. There is a need for enhanced communication and information-sharing, which should be prioritised by Wisma Putra.” She said according to one report, only 10% of Malaysian drug mules get caught, which implies that many more of them made successful drug runs. “Over 430 of them are currently in prison globally, highlighting the magnitude of the issue.” Kok added that while commendable efforts have been made by Bukit Aman Narcotics Crime Investigation Department deputy director DCP Zulkifli Ali to combat drug syndicates, challenges in communication between law enforcement agencies across multiple countries persists. She said the lack of coordination allows drug syndicates to exploit gaps in information-sharing, leading to cases not being pursued in the country of origin. Kok said the Golden Triangle, where the borders of Laos, Myanmar and Thailand are located, poses a significant challenge in the fight against the drug menace, adding that with reinforced determination by the government, Malaysia could gradually overcome the malignancy that has gripped the nation for decades. oM’sians in foreign prisons must be properly represented via efficient system for govt-to-govt collaboration: MP █ BY JOSHUA PURUSHOTMAN newsdesk@thesundaily.com Expressway stretch to open by April TAIPING: Section 11 of the West Coast Expressway (WCE) from Beruas to Taiping (South) is expected to be commissioned in the first quarter of this year, at the latest in April. Malaysian Highway Authority deputy director-general (Development) Dr Nadzrol Fadzilah Ahmad said efforts were being made to commission the section before Chinese New Year, adding that she was confident it can be operational before Hari Raya Aidilfitri. “The aim is to help people avoid congestion, but it is still subjective because safety is our priority,” she told a press conference yesterday. Earlier, Perak Menteri Besar Datuk Seri Saarani Mohamad and state executive councillors inspected the construction of the WCE project. – Bernama Quran, Fardu Ain test postponed to Jan 23 PUTRAJAYA: The Sirah paper for the Quran and Fardu Ain Class Assessment Test scheduled for yesterday has been postponed to Jan 23, said Islamic Development Department Malaysia director-general Datuk Hakimah Mohd Yusoff. She said in a statement yesterday the test had to be postponed due to unavoidable technical issues. “We apologises for the inconvenience and pray that all candidates across the country can fully focus on the ongoing test.” The test is held to assess the level of skills, abilities and appreciation of Year 5 pupils in the study of the Quran, Ulum Syariah (Aqidah and Ibadah), Sirah, Adab (Islamic Ethics), Jawi and Khat as well as the Asas Lughatul Quran. – Bernama Meet KPI or lose licence, operators warned PUTRAJAYA: The licence issued to water supply service operators under the National Water Services Commission can be revoked if they do not achieve the required key performance indicators (KPI). Energy Transition and Public Utilities Deputy Minister Akmal Nasrullah Mohd Nasir said this is stipulated under the Water Services Industry Act 2006. “The reason is the income of the water operators is expected to increase following the adjustment of the tariff, and the revenue should be used to improve the quality of services and solve the main problem of water supply in the respective states. “The KPI that the water operators are required to meet include ensuring the development and improvement of key infrastructure. “This also includes replacement of dilapidated pipes or the construction of new water treatment plants.” Akmal said several states have submitted proposals to the ministry regarding efforts to improve services and infrastructure to provide better quality water supply services. “This will be our focus for the next two or three years, for us to prove that when there is a tariff adjustment, there is an improvement in terms of services provided.” He said the ministry will also examine the main issues facing water supply operators, including in Kelantan, to facilitate compliance with the minimum water quality standards set by the Health Ministry while in Kedah, the focus would be on water pressure and the absemce of a margin reserve, resulting in the operator being unable to meet water supply demand. “Therefore, it is important for every state to have a plan to solve specific issues, such as pollution, response, disturbances, complaints as well as overcoming the issue of water supply disruption,” he added. – Bernama The National Water Services Commission said the tariff adjustment was necessary to ensure continued quality services to consumers. – ADIB RAWI YAHYA/THESUN Water tariff adjustment to take effect on Feb 1 Water tariff hike (Difference) Per cubic meter RM1.75 RM1.97 22 sen Jan 31 Feb 1
THURSDAY | JAN 18, 2024 4 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ Understanding of AI facilitates acceptance of technology: Expert SERDANG: With AI technology, one of the branches behind Industrial Revolution 4.0 (IR 4.0) increasingly taking place in the economic and industrial landscape globally, Malaysians are becoming worried, seeing it as a threat rather than a positive step forward. Several experts said the lack of understanding among the public of the true context of the importance of AI led to the perception that it would take over human functions and subsequently “conquer the world”. To such individuals, the application of AI would eliminate employment opportunities for humans, replacing them with machines, as it is happening in some employment sectors currently, such as the hospitality sector. However, that assumption is completely unfounded because the transition to AI technology will not completely replace human resources, but will create highly skilled job opportunities that can be filled by individuals. “Society needs to change and be ready to accept the use of AI technology because that technology will allow the country to produce a new generation of workers who can use various technology applications, thus increasing employment opportunities for the people. “In the past, the country’s labour industry depended on foreign labour. This will change with AI technology, which will also help deal with problems in various sectors such as agriculture,” said Prof Dr Rusli Abdullah. The National Council of Professors ICT Cluster deputy chairman sees the AI For the People programme launched by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday as one of the best initiatives of the unity government in disseminating the importance and benefits of the technology. “A basic understanding of AI technology is very important because it is the most important stage in attracting the community to together adapt the technology to realise the government’s aspiration towards building a digital economy thus generating higher value on the world stage.” He said society will also be able to open a wider context that AI technology is not a substitute for human labour but complements it and if explored well, it could inject positive effects into various sectors. This is also in line with the “The Economy Impact Of Generative AI: The Future of Work In Malaysia” report issued by the Malaysia Centre for 4th Industrial Revolution that generative AI technology alone has the potential to open productive capacity worth US$113.4 billion (RM534.11 billion) in the Malaysian economy if it is fully adopted across all industries. The government’s move to introduce the AI For the People programme, which is a collaboration with Intel Malaysia, is also seen by experts as helping to address the gap in digital literacy and understanding of AI among the community, especially between the urban and rural residents. Universiti Putra Malaysia vicechancellor Prof Datuk Dr Ahmad Farhan Mohd Sadullah said the biggest problem is when society does not understand it and this gives rise to various assumptions. “This needs to be addressed, especially for rural communities and those in the urban areas considering the country is currently dealing with the problem of the digital divide. “However, I see the implementation of the AI For the People programme as one of the best approaches of the government to expose to society as a whole the most basic things when we talk about AI so that people are not left behind or refuse to change,” he said – Bernama Detrimental effects of excessive homework PETALING JAYA: The huge amount of homework required from schoolchildren aged between seven and 17 needs to be replaced with tailored assignments that spark genuine interest and engagement, said National Association of Private Educational Institutions secretarygeneral Dr Teh Choon Jin. He said striking a balance between classroom lessons and homework is essential to ensure students benefit from knowledge without succumbing to an overwhelming workload. “By correcting the role of homework, the education system can better cater to the principles of holistic education while upholding the integrity of assessment practices.” Teh said in a 2021 survey conducted by the Education Ministry, 75% of teachers expressed belief in the essential role of homework, but only 54% felt it was effectively used. He added that the connection between standardised testing and homework is evident, with a 50% rise in assigned tasks reported in the months preceding significant assessments, such as the Sijil Pelajaran Malaysia examination. He said the transition from conventional assessments to the School-Based Assessment model emphasises a holistic approach that oAlthough well-intentioned, overload often backfires and contributes to heightened stress, burnout, says expert █ BY RAVEEN AINGARAN newsdesk@thesundaily.com incorporates academic and nonacademic components. “While assessments remain crucial to evaluate learning objectives, the growth of homework tasks raises concerns about its effectiveness in promoting a wellrounded education.” Teh said there is a pressing need to re-evaluate the role of homework in the education system and shift the focus from sheer volume to assignments that are meaningful and able to reinforce key concepts. He said the stress induced by the demands of standardised tests often compel educators to assign more homework in a well-intentioned effort to improve student preparedness. “Unfortunately, this approach frequently backfires and contributes to heightened stress levels and burnout.” Teh also said educators can strike a balance between preparing students for standardised tests and preventing an overwhelming homework burden through a more strategic and diversified approach to test preparation. He said rather than relying solely on traditional homework assignments, teachers could incorporate a range of assessments, including project-based evaluations, classroom discussions and practical applications of knowledge. “Implementing quizzes in the classroom to encourage student discussions can effectively prepare them for standardised tests while alleviating excessive homework.” Teh said embracing collaborative learning and peer-to-peer teaching provides alternative avenues to reinforce concepts without exclusive reliance on homework assignments, adding that the approach fosters a more comprehensive understanding of the material and prepares students for the transition to higher education, when a shift towards independent learning, critical thinking and information search skills becomes increasingly prominent. “Recognising the diverse learning needs of students is essential while tailoring assignments that spark genuine interest and engagement enhances their effectiveness. “Quality and relevance should outweigh quantity in ensuring that homework serves its intended purpose.” While stressing that creating a supportive and holistic learning environment requires a multifaceted approach, Teh said open communication among educators, students and parents is essential to address concerns collaboratively, adding that prioritising mental health and well-being in schools involves integrating counselling services into the curriculum. “Systemic changes at the institutional level are crucial, with schools incorporating mental health education, providing educator training on stress recognition and offering accessible counselling services. “Professional development opportunities for teachers should emphasise innovative teaching methods, reduce reliance on conventional homework and highlight experiential and hands-on learning, ultimately contributing to a positive and supportive learning environment.”
THURSDAY | JAN 18, 2024 5 Rabies alert in Kuching, Bintulu KUCHING: Bintulu and Kuching have been declared rabies-infected areas, said Sarawak Food Industry, Commodity and Regional Development Minister Datuk Seri Dr Stephen Rundi Utom. He added that 12 dogs tested positive, eight of which were in Kuching, one each in Padawan and Bau, and two in Bintulu. “All the dogs were free-roaming and unvaccinated strays. I would like to remind the public to take extra precautions and go to the clinic if bitten by an animal,” he said. On Tuesday, Stephen said he had also signed an anti-rabies vaccination order under Section 40 (1) Veterinary Public Health Ordinance 1999, which requires all dogs in the state to be subjected to anti-rabies vaccination and annual boosters, adding that dog owners must be responsible for ensuring their pets are given the anti-rabies vaccine. “Any owner or person in charge of a dog who fails to comply shall be liable to a fine of up to RM2,500. Dogs that are already exposed to rabies and do not have proper evidence of vaccination will be put to sleep,” he said. “The public can get their free dog anti-rabies vaccination at any government veterinary offices or during mass vaccination programmes, which will be announced from time to time on the official Sarawak DVS Facebook page. This year, we target to vaccinate up to 50,000 dogs.” Sarawak recorded 16 deaths last year from 18 human rabies cases. The total cases since July 2017 stands at 73, with 66 deaths. – Bernama Traffic dispersal adjustments in M’cca MALACCA: The Malacca Historic City Council will be making several adjustments to the traffic dispersal system at the Vehicle-Free Zone in Banda Hilir, in conjunction with the upcoming Chinese New Year celebrations. It said in a statement that Jalan Laksamana, part of Jalan Tun Khalil Yaakob, Jalan Taman, Jalan Kota and Jalan Istana will be closed for 54 hours from 6pm on Friday until midnight on Sunday, Bernama reported. “Traffic on Jalan Banda Kaba, Lorong Chan Koon Cheng and Jalan Chan Koon Cheng will be diverted from 6pm on Friday until midnight on Sunday. “During the same period, there will also be traffic diversions on Lorong Hang Jebat and as an alternative, motorists are allowed to use the Tan Kim Seng Bridge to get to Jalan Tun Khalil Yaakob from 1am to 6pm,” it said. Traffic diversions along Jalan Kee Ann have been shortened, stretching from the Jalan Kee Ann and Jalan Bunga Raya intersections up to the junction to Jalan Kee Ann and Jalan Baru. Pahang needs RM700m to repair, maintain roads KUANTAN: The Pahang government has applied for over RM700 million from the federal government to repair and maintain roads this year. State Public Works, Transport and Health Committee chairman Datuk Mohammad Fakhruddin Mohd Ariff expressed hope the allocation would be approved to promptly address the issue of damaged roads in the state for the benefit and safety of road users. “Every year, we apply for allocations and sometimes, we only receive half of what is requested although many of the roads in Pahang are damaged and it also involves structures that need to be in better condition. “When the rainy season comes, we see more road problems occurring. The roads also need maintenance regularly to ensure they are always in good condition.” – Bernama Flood evacuee numbers up in two states KUALA LUMPUR: The number of flood evacuees housed at six temporary relief centres in two states increased slightly to 280 as of noon yesterday, compared with 278 in the morning. According to the latest report issued by the National Disaster Management Agency (Nadma) National Disaster Command Centre, of the total, 80 were from 22 families in Johor, who were at three centres, which includes 65 individuals from 19 families at two centres in Segamat and 15 from three families at a centre in Batu Pahat. In Pahang, a total of 101 evacuees from 34 families remain accommodated at a relief centre in Rompin while in Sabah, 99 individuals from 42 families were accommodated at two centres in Beluran. Meanwhile, monitoring of the situation by the Department of Irrigation and Drainage found that several rivers were at dangerous levels i.e. Sungai Muar in Segamat and Sungai Johor in Kota Tinggi (both in Johor), Sungai Kedah in Kota Setar (Kedah), Sungai Arau (Perlis) and Sungai Terengganu in Kuala Terengganu. Nadma also said 17 roads were closed due to flooding, damaged bridges and landslides. They include Jalan Durian Mentangau in Dungun (Terengganu), Jalan Sungai Tiang in Baling (Kedah) and Jalan Petri Jaya in Kota Tinggi (Johor). It also said 38 evacuees were still at a relief centre in Kuching, following a fire involving nine houses in Kampung Bintawa Hilir, Petra Jaya. The Meteorological Department also issued a warning on continuous rain at alert levels in Pahang and Johor, starting today until Saturday. It said the areas involve in Pahang are Kuantan, Pekan and Rompin, while locations in Johor include Kluang, Mersing, Kulai, Kota Tinggi and Johor Bahru. The department also issued a similar warning for Kuching, Serian, Samarahan, Sri Aman, Betong, Sarikei, Sibu, Mukah (Tanjung Manis, Daro, Matu and Dalat). – Bernama ‘Vital for PwD to be registered with Social Welfare Dept’ PETALING JAYA: A persons with disabilities (PwD) advocate has encouraged individuals in the group to register with the Social Welfare Department, as failure to do so could result in them losing out on numerous government initiatives. Sakinah Bibi Nagoor, who is Petaling Jaya Zone 6 city councillor, welcomed recent initiatives announced by Transport Minister Anthony Loke granting PwD complimentary rides on all Prasarana Malaysia Berhad trains and buses, beginning next month. “We commend the government’s efforts to enhance accessibility for PwD. It will have a positive impact on our mobility within the public transport system. “While the initiative for free rides on trains and buses is commendable, it should also be extended to lower fares on e-hailing services as many PwD face high charges when using them.” Sakinah said while there are currently 685,602 PwD registered in the country, the figure is small as many were unregistered, adding that registering with the department would facilitate data collection and ensure government assistance is provided to PwD in a more organised and targeted manner. “Registration will help PwD obtain the help they require, including access to designated parking spaces and specialist facilities. “Since 2020, the PWD registration process has been simplified and we can now have any medical practitioner sign our registration forms. This represents a positive shift from the previous policy, which restricted signatories to government doctors only.” She also said PwD now have the flexibility to obtain disability verification from either government or private doctors and medical practitioners registered with the National Specialist Register and Malaysia Medical Council. The registration process for PwD has also been made convenient, allowing individuals to register at any of the department’s offices or online through the PwD registration form that is accessible at www.oku.jkm.gov.my. While lauding the Prasarana free ride concession, Sakinah said the initiative should be extended to also include lower e-hailing fares for PwD. – AMIRUL SYAFIQ MOHD DIN/THESUN oMove would allow group to receive govt aid in organised and targeted manner, says advocate █ BY MUHAMMAD AMMAR JALAL newsdesk@thesundaily.com She said the primary reason for the low number of registrations among PwD is the stigma they associate with being called a PwD. “Many PwD hesitate to register due to the fear of being perceived as burdensome, particularly after officially being registered. “The significance of their self-acceptance highlights the importance of embracing their identity without the weight of societal prejudices.” Sakinah emphasised the importance for PwD to disregard external perceptions and cultivate self-confidence, adding that initiatives such as the complimentary rides on Prasarana transportation services would contribute to an increase in PwD registrations. “The initiative is poised to bring about positive changes, particularly among PwD residing in urban areas. “However, its impact may be limited for those in rural areas. Therefore, I call on ehailing services and taxis to be more accommodating and accessible for PwD in such areas.” While registration for visible and non-visible disabilities within the PwD category is not compulsory, Sakinah said registration opens doors to government assistance and benefits. “Such support includes opportunities like scholarships or educational schemes aimed at facilitating tertiary education for PwD. “We thank the government for actively stepping up its initiatives to enhance public awareness and understanding regarding matters related to PwD.”
THURSDAY | JAN 18, 2024 6 Two M’sians plead guilty to conspiring in Bali bombing oBoth agreed to charges of being accessories to terrorist attacks in 2002 KUALA LUMPUR: Two Malaysian terror suspects pleaded guilty on Tuesday to conspiring in the 2002 Bali bombing, after being imprisoned at the Guantanamo Bay detention camp in Cuba since 2006. The New York Times reported Mohammed Farik Amin, 48, and Mohammed Nazir Lep, 47, were charged in 2021, 18 years after they were caught in Thailand. The sentencing is set for next week. Both suspects were held in the US Central Intelligence Agency’s secret overseas prison network for years. In 2006, they were subsequently relocated to Guantanamo Bay to face trial at a special national security court that President George W. Bush set up after the Sept 11 attacks. They have been charged alongside Indonesian terror suspect Encep Nurjaman, also known as Hambali, reported Bernama. Last October, The New York Times reported Mohammed Farik and Mohammed Nazir had agreed to charges of being accessories to the terrorists attacks in Bali and were separated from Hambali’s case. According to the report, Mohammed Farik and Mohammed Nazir agreed to testify against Hambali, the former leader of the Jemaah Islamiyah movement. Hambali now faces charges of murder, terrorism and conspiracy in the 2002 and 2003 incidents, and the maximum punishment is life in prison. The duo were initially charged in 2018 with nine offences linked to the 2002 bombings of Bali nightclubs and the 2003 bombing at the Jakarta Marriott hotel. Kamarul (second from left) showing ammunition and drugs seized from the suspects during a press conference at the Johor police contingent headquarters yesterday. – BERNAMAPIC Penang cops bust online gambling syndicate GEORGE TOWN: Penang police have uncovered a syndicate involved in promoting and operating online gambling activities that generate profits of up to RM2.5 million, through two raids (Ops Dadu). State police chief Datuk Khaw Kok Chin said in the first raid in Jelutong, four men and five women, all aged between 23 and 32, were detained. “The syndicate, which has been operating for the past year, rented the premises for a monthly fee of RM7,000 and it (was disguised as) a regular office, which prevented people from suspecting any criminal activities. “Through police inspection and investigation, we managed to unveil their illicit operations,” he said, adding that the syndicate promoted various online games through WeChat and Facebook apps. He also said the syndicate targeted customers in Australia and Bangladesh, generating an income of up to RM1 million per month. A 32-year-old woman detained in the raid is believed to be the syndicate’s leader, and she was responsible for recruiting workers with salaries ranging from RM2,000 to RM6,000 per month. “In addition to salaries, the workers also received commissions if they succeed in getting overseas customers.” In the second raid at a luxury condominium in Queensbay in Bayan Baru, police arrested four local men aged 21 to 33. “Two of them were the main masterminds and had been operating in the condominium for five months, earning profits of up to RM1.5 million per month.” Khaw said the syndicate rented the condominium for RM5,000 a month and used it as a call centre for online gambling activities, targeting customers in Australia. Police seized various computer equipment, including 32 mobile phones, internet modems, notebooks, CCTV cameras and nine cars, worth a total of more than RM700,000. “All 13 individuals detained have no criminal records and are currently in remand to assist in investigations,” he said, adding that the case is being investigated under Sections 4(1)(c) and 4(1)(g) of the Common Gaming Houses Act 1953. – Bernama Application on probe into judge dismissed KUALA LUMPUR: The High Court yesterday dismissed an application by Muda to refer constitutional issues regarding an investigation into Judge Datuk Mohd Nazlan Mohd Ghazali to the Federal Court. Judge Datuk Ahmad Kamal Md Shahid dismissed it after finding there was no merit by Muda to refer the constitutional issues to the apex court. Ahmad said the proposed questions have become academic since the Malaysian Anti-Corruption Commission’s (MACC) view has been superseded by the Federal Court’s decision in former prime minister Datuk Seri Najib Abdul Razak’s SRC International Sdn Bhd case. “This court opines the proposed questions should not be entertained by the High Court nor referred to the Federal Court under Section 84 of Act 91 of the Courts of Judicature Act 1964.” He said the power to interpret constitutional provisions is not exclusively within the Federal Court’s jurisdiction. “The Federal Court is generally a court of last resort for all constitutional questions. This court finds the applicant’s application has no merit in law and hereby dismissed,” Ahmad said, adding that the court fixed Feb 6 for case management. On April 25 last year, Muda applied to refer constitutional issues regarding MACC’s authority to investigate a serving superior court judge for breaching the Judges’ Code of Ethics 2009 and presiding over a case despite a conflict of interest. – Bernama Man claims trial over drink-driving offence BUTTERWORTH: An engineer pleaded not guilty in a Magistrate’s Court yesterday for allegedly driving under the influence of alcohol that resulted in the death of two teachers, Muhammad Fakhrul Rodzi Fauzi, 31, and Muhammed Ahsan Mohamed Ayub, 32, in December last year. Teoh Joo Leong, 47, claimed trial when the charge was read to him before Magistrate Siti Zulaikha Nordin. He was charged under Section 44(1)(b) of the Road Transport Act 1987, which provides between 10 and 15 years’ jail and a fine of between RM50,000 and RM100,000. DPP Nurameera Shahrul Azrin asked the court to set a RM10,000 bail with one surety. Lawyer Chew Anthony, representing Teoh, pleaded for minimum bail stating Teoh is a widower with three school-going children and elderly parents to care for. Siti Zulaikha set bail at RM8,000 with one surety. – Bernama Teen charged with killing elderly man SEREMBAN: A 17-year-old boy was charged in a Magistrate’s Court yesterday with murder of an elderly man, two weeks ago. He was charged with murdering Muhammad Zahid Nagappan, 74, at Kampung Pasir in Rantau, between 11.30pm last Jan 3 and 10am the following day. The charge, framed under Section 302 of the Penal Code which provides the death penalty or a minimum 30 years’ jail and a maximum 40 years’ jail, and if not sentenced to death, the offender shall be punished with a minimum of 12 cane strokes. Underage offenders cannot be sentenced to death under Section 97(1) of the Child Act 2001 but can be replaced with a prison sentence at the pleasure of the Yang diPertuan Agong if the offence was committed in the Federal Territory and the Sultan or Yang di-Pertuan Negeri if committed in other states. March 18 was set for post-mortem report submission. – Bernama Mother, son among trio held in RM1.2m drug case JOHOR BAHRU: A woman and her son are among three individuals arrested in connection with the seizure of RM1.23 million worth of drugs uncovered in three raids conducted here and in Iskandar Puteri between Jan 10 and14. State police chief Datuk Kamarul Zaman Mamat said the 61-year-old woman and her 40-year-old son, as well as a 59-year-old male friend, were arrested by the Johor Narcotics Criminal Investigation Department in the special operations. “The modus operandi of this syndicate is to use a rented apartment to hide the drugs before distributing them in the local market. “The syndicate, believed to be masterminded by the 40-year-old man, is also involved in drug processing and packaging,” Kamarul said. The seized drugs included 16.47kg of ecstasy powder, 7.77kg of ganja and 1.77g of syabu, he added. – Bernama
THURSDAY | JAN 18, 2024 7 China threat aimed only at ‘foreign interference, separatists’ BEIJING: China’s position that it will not renounce using force to bring Taiwan under its control is aimed at foreign interference and a tiny number of separatists, but Taiwanese need to be disabused of “biases” against China, the government said yesterday. Taiwan’s ruling Democratic Progressive Party (DPP), which won the presidential election on Saturday, rejects Beijing’s sovereignty claims but has repeatedly offered talks that have been rebuffed. China views president-elect Lai Ching-te as a dangerous separatist. Chen Binhua, spokesperson for China’s Taiwan Affairs Office, told a regular news briefing in Beijing that the result of Taiwan’s election does not change the fact that the island is Chinese and will eventually be “reunified”. “Our not promising to renounce the use of force is absolutely not targeted at Taiwan compatriots. We oResults of Taiwan’s election shows citizens need to be disabused of ‘biases’ against China MOMENT OF SILENCE ... People praying at a memorial gathering to mark the 29th anniversary of the “Great Hanshin Earthquake” in Hyogo Prefecture, Japan on Jan 16. – AFPPIC Iran accused of airstrike in Pakistan ISLAMABAD: Pakistan said yesterday that Iran carried out an air strike on its territory that killed two children, after Tehran launched attacks in Iraq and Syria against what it called “antiIranian terrorist groups”. Pakistan denounced the strike, near the nations’ shared border late on Tuesday, as “completely unacceptable”, saying it was unprovoked. Iran offered no immediate official comment but its state-run Nour News agency said the attack destroyed the Pakistan headquarters of the jihadist group Jaish al-Adl (Army of Justice). Formed in 2012, Jaish al-Adl is blacklisted by Iran as a terrorist group and has carried out several attacks on Iranian soil in recent years. The strike came after Iran launched missile attacks on “spy headquarters” and “terrorist” targets in Syria, and in Iraq’s autonomous Kurdistan region. The Iranian strikes add to multiple crises across the Middle East, with Israel waging a war against Hamas in Gaza and proPalestinian Huthi rebels in Yemen attacking commercial vessels in the Red Sea. Pakistan’s official statement did not say where the strike took place, but Pakistani media said it was near Panjgur in southwest Balochistan province, where the two countries share a sparsely populated border of nearly 1,000km. Hours before the strike, Pakistan’s caretaker Prime Minister Anwar-ulHaq Kakar had met Iranian Foreign Minister Hossein Amir-Abdollahian on the sidelines of the World Economic Forum in Davos, Switzerland. “This violation of Pakistan’s sovereignty is completely unacceptable and can have serious consequences,” Pakistan’s foreign ministry said in a statement. It said the strike “resulted in death of two innocent children while injuring three girls”. Pakistan said it summoned Tehran’s top diplomat in Islamabad to protest at the “unprovoked violation of its airspace”. Late Tuesday, Iran’s Nour News agency posted on X: “Minutes ago, two important headquarters of the so called Jaish-ul-Adl terrorist group was targeted in Pakistan. These headquarters were destroyed by rockets and drones.” The group claimed responsibility for an attack in December on a police station in Rask that killed at least 11 Iranian police officers. The US has also labelled Jaish al-Adl a terrorist organisation, saying the group “primarily targets Iranian security personnel” but also government officials and civilians. – AFP South Korea imposes sanctions on North SEOUL: South Korea has sanctioned two individuals, three entities and 11 ships linked to North Korea’s nuclear and missile programmes, its foreign ministry said yesterday. The sanctions announcement comes days after North Korea fired a new intermediate range, solid-fuel hypersonic missile, which South Korea and the US strongly condemned as a serious violation of UN Security Council resolutions. Pyongyang has also announced a break with decades of crossborder policy, dismantling some government entities handling interKorean ties and declaring the South a separate, enemy state. The newly blacklisted targets have chiefly been involved in illegal energy smuggling at sea, the ministry said. Faced with a drawn-out gridlock at the United Nations, Seoul has turned to slapping sanctions on Pyongyang independently or together with Washington and Tokyo, seeking to squeeze its funding sources. South Korea’s military said yesterday that its navy held threeday joint maritime drills from Monday with US and Japanese troops involving American aircraft carrier Carl Vinson to improve their responses to North Korea’s threats. The three countries’ nuclear envoys are also scheduled to hold talks in Seoul today. Leader of South Korea’s main opposition Democratic Party, which has long pushed for inter-Korean reconciliation, yesterday criticised North Korean leader Kim Jong Un for describing the South as the “primary foe”. – Reuters are targeting interference from external forces and the tiny number of Taiwan independence separatists and their separatist activities,” Chen said. Over the past year-and-a-half China has twice staged large-scale war games around Taiwan and regularly sends fighter jets and warships into the Taiwan Strait. Mainstream public opinion in Taiwan wants peace not war, exchanges not distance, and to “take down” the DPP, he said, reiterating the office’s comment on Saturday following Lai’s victory with less than 50% of the vote and the loss of the DPP’s parliamentary majority. “If the DPP does not repent and goes further and further on the wicked path of seeking ‘independence’ provocations, it will only push Taiwan into a dangerous situation and bring serious harm to Taiwan,” he said. Chen added that Taiwanese are “our flesh and blood”, but some have been “poisoned” by ideas of independence and have a “biased understanding” of relations across the strait and national identity. “We are willing to maintain sufficient patience and tolerance, continue to deepen the understanding of the mainland of the motherland by the majority of Taiwanese compatriots, and gradually reduce their misunderstandings and doubts,” he added. “We hope and believe that our compatriots in Taiwan can firmly stand on the right side of history and be upright Chinese people.” As if to underscore those differences in understanding, Chen told off a Taiwanese reporter for using “Beijing” to refer to China, saying the correct wording was “the mainland”. Opinion polls in Taiwan show an overwhelming number of people these days consider themselves Taiwanese not Chinese, and close to no support for China’s “one country, two systems” model of autonomy to get the island to accept Beijing’s rule. However, Chen did not mention Lai, who takes office on May 20, by name, unlike before the election when the Taiwan Affairs Office repeatedly and directly called him a separatist and danger to peace. China said talks can only happen under the provison Taiwan recognises both sides of the Taiwan Strait are part of “one China”, which the DPP-led government has refused to do. – Reuters Philippines bans poultry imports from California MANILA: The Philippines’ farm ministry said yesterday it has banned poultry imports from California and Ohio in the US because of several outbreaks there of highly pathogenic avian influenza. The ban, which aims to protect the health of the Philippines’ poultry population, covers imports of domesticated and wild birds, including poultry meat and eggs, the ministry said in a statement. All shipments coming from California and Ohio that are already in transit, loaded, or accepted at Philippine ports before Jan 15 will be allowed entry if they were slaughtered two weeks before the outbreak began, it added. In 2023, the Philippines imported 166,356 tonnes of poultry products worth US$175.8 million (RM829 million) from the US, which is the secondlargest supplier to the Southeast Asian nation accounting for 40% of arrivals, government data showed. Earlier this month, the Philippines halted imports of poultry products from Belgium and France, also because of a bird flu outbreak. – Reuters Nigerian rescuers search for injured in building collapse LAGOS: Nigerian rescuers searched for injured people on Tuesday night after a huge blast in Oyo state shook buildings and sent panicking residents onto the streets. The cause of the blast was not immediately clear while local media reported that some buildings had collapsed. The explosion was heard in the Oyo state capital Ibadan, 130km from the commercial capital Lagos. Some residents said the blast shattered windows of their homes. “Relevant agencies are carrying out search and rescue operations at the scene of the incident. Residents of the state are urged to remain calm as the Oyo State Government is on top of the situation,” Oyo state said in a statement. The state’s commissioner for information Prince Dotun Oyelade earlier said “residents of Ibadan and immediate environ experienced an uncommon explosion about 8pm Tuesday evening”. – Reuters
THURSDAY | JAN 18, 2024 8 17 wounded in Russian strikes on Ukraine KYIV: At least 17 people were wounded in Russian strikes on the Ukrainian city of Kharkiv on Tuesday evening, the regional governor said. Governor Oleg Synegubov said that the strikes hit residential buildings in the city centre, injuring at least 17. “Two women are in a serious condition,” he added in a post on Telegram. Synegubov said according to preliminary information, the city was hit by two S-300 missiles. Kharkiv, just 30km from the border with Russia in Ukraine’s northeast, has come under frequent bombardment since Moscow decided to invade in February 2022. After the strikes, the city’s mayor said that some residential buildings were destroyed and that there were no military targets in the area. There was no immediate comment from Moscow. Earlier on Tuesday, authorities urged about 3,000 residents in more than two dozen villages near the frontline in the wider Kharkiv region to evacuate, citing escalating Russian attacks in the area. A drone attack on Tuesday night also injured three civilians and damaged residential buildings in the southern city of Odessa, according to the head of the region’s military administration, Oleg Kiper. “A 62-year-old man was injured by shrapnel. A woman born in 1955 and a young woman born in 1995 were wounded,” he said. Russia meanwhile said it had repelled an attack early yesterday on its border city Belgorod, about 80km from Kharkiv. “Anti-aircraft defence destroyed seven Ukrainian missiles and four drones over the Belgorod region,” Russia’s Defence Ministry said. The region’s governor, Vyacheslav Gladkov, said there were no immediate casualties reported. Russian forces captured swathes of the Kharkiv region shortly after invading Ukraine in February 2022, and have kept up efforts to wrest the region despite losing ground there. – AFP Sudan fighting spreads to World Heritage Site GEZIRA: Sudan’s devastating nine-month war between two rival generals is spreading to a Unesco World Heritage Site, an NGO reported late Tuesday, sounding the alarm for the remains of the ancient Kingdom of Kush. The Regional Network for Cultural Rights said it “strongly condemns the incursion by the Rapid Support Forces (RSF)”, the paramilitary forces of general Mohamed Hamdan Daglo, “on the sites of Naqa and Musawwarat es-Sufra”. RSF forces have been fighting against troops loyal to Sudanese army chief Abdel Fattah alBurhan since April last year. The NGO said the incident, which took place on Sunday, marked the second time since December that fighting had broken out at the religious sites, located in the northern River Nile state. State authorities also reported “an incursion by the RSF, repulsed by the air force”, claiming that “calm has returned” without mentioning whether the sites suffered any damage. The cultural rights group said it had consulted “reliable sources, images and videos posted on social networks showing fighting between the army and the RSF, which probably exposed the sites to vandalism, destruction, looting and theft”. According to Unesco, the archaeological sites of the Island of Meroe, located about 220km from Khartoum, was “the heartland of the Kingdom of Kush” and is home to pyramids, temples and dwellings dating back thousands of years. The ancient civilisations of Sudan built more pyramids than those of Egypt, but remain largely unknown. – AFP B R I E F STHREE POLICE OFFICERS ARRESTED IN DRUG SWEEP BRUSSELS: Belgian authorities said Tuesday that 22 people, including three police officers, were arrested in a vast anti-drug operation whose targets included suspected cocaine smugglers at the port of Antwerp. Around 350 officers were deployed mainly in Brussels and Antwerp and 45 searches carried out, resulting in the seizure of cash, luxury vehicles and a handgun, the federal police said in a statement. The sweep was part of an investigation launched in February 2023 that was sparked by “several serious crimes”, which revealed drug trafficking “from local dealers to import/export operations”, police said. Investigators managed to decrypt several phones equipped with Sky ECC, a secure communications app used by criminal gangs. – AFP MACRON SEEKS TO REVIVE PRESIDENCY PARIS: President Emmanuel Macron on Tuesday sought to breathe new life into his final term with a promise for a “stronger and fairer” France, at a rare news conference peppered with a string of announcements aimed at forging greater civic responsibility and security. With over three years of his second and final term to run, Macron has been on the back foot in recent weeks after a series of crises and a growing challenge from the far right. – AFP Trump attends rape defamation case NEW YORK: Former US president Donald Trump went straight from his victory in the Republican Iowa caucuses to a New York courtroom Tuesday for the start of a defamation trial brought by writer E. Jean Carroll after an earlier jury found he had sexually assaulted her in the 1990s. In court, Trump did not make any statements, and he and Carroll avoided looking at each other while jurors were being selected, according to reporters allowed inside the courtroom. But Trump continued attacking Carroll on his Truth Social platform, reposting a clip from an interview she gave to CNN and writing, “Can you believe I have to defend myself against this woman’s fake story?!” Addressing supporters at a rally in New Hampshire later in the day, Trump said he planned to attend daily court proceedings in the “phony” case in New York over the next several days, while continuing campaigning. “Early in the morning I go to a Biden witch hunt,” Trump said in the northeastern state, which will hold the nation’s second presidential nomination contest next Tuesday. “And then I come here in the afternoon and I stop, we make speeches and we get the votes.” The shocking defamation case, which would likely once have been enough to wreck any politician’s career, has had no visible impact on Trump’s bid to retake the White House and, if anything, is boosting his standing with his party’s right wing. Carroll, 80, is seeking more than US$10 million (RM47.2 million) in damages in the civil trial, alleging that Trump defamed her in 2019 when he was president and she had just come out with her allegation, saying she “is not my type”. This is separate to a civil case last year where another New York jury found Trump liable for sexually assaulting Carroll in a department store dressing room in 1996 and oPlans to go for daily court proceedings over the next few days while continuing to campaign in New York subsequently defaming her in 2022, when he called her a “complete con job”. In that case, the jury awarded Carroll US$5 million (RM23.5 million) in damages. This is only one of many trials swirling over Trump’s head. He has been indicted in four criminal cases and faces 91 counts on allegations including his attempts to undermine the 2020 election which he lost to Joe Biden, taking stacks of top secret documents, and business fraud. Trump has embraced his legal problems as evidence of a conspiracy theory in which a nebulous “deep state” is out to stop him from returning to power. Despite the constant scandal, his fervent base of supporters proved its strength on Monday with an overwhelming victory in the Iowa caucuses to choose the Republican candidate who will face Biden on Election Day in November. Trump has used previous trial appearances to seize the limelight and deliver invective-filled speeches, both outside courthouses and, when allowed to speak by the judge, on the witness stand. He has also used social media posts to issue crude insults against court personnel. – AFP OUTDOOR FUN ... People taking advantage of the snowfall to sled on the hill of the West Front of the US Capitol on Jan 16 after the biggest snowfall in more than two years blanketed the Washington Metropolitan area. – AFPPIC
THURSDAY | JAN 18, 2024 9 Israel pounds Gaza as fears grow of widening war oIran and proxies step up attacks across the region as they express solidarity with Hamas GAZA STRIP: Israel pummelled Gaza on Tuesday but reached a deal with Hamas to deliver medicines to hostages and desperately needed aid to civilians in the war-torn Palestinian territory following Qatari and French mediation. Fears of a regional escalation have spiked, with Iran and its proxies stepping up attacks across the region in solidarity with Hamas. The United Nations says the war has displaced roughly 85% of Gaza’s 2.4 million people, many of whom have been forced to crowd into shelters and struggle to get food, water, fuel and medical care. Hamas released dozens of hostages in exchange for Palestinian prisoners held by Israel during a November ceasefire mediated by Qatar. At least 24,285 Palestinians, about 70% of them women and children, have been killed in Gaza in Israeli bombardments and ground operations since Oct 7, according to the territory’s health ministry. Surrounded by warped metal, gutted buildings and overturned vehicles in central Gaza’s AlMaghazi refugee camp, Fatima alMasry said Netanyahu would not succeed and must bear responsibility for the destruction. “The Israeli army killed children and young people, destroyed us, and threw us in the cold, but we are steadfast,” said Masry, who was displaced from Jabalia refugee camp in northern Gaza. As temperatures plunge, families living in makeshift tents in the southern city of Rafah have resorted to burning plastic to ward off the chill, despite the noxious fumes. “I pray every day that we will all be martyred. Death is better than this life,” said Abdul Karim Muhammad, a 29-year-old father of three whose family fled to Rafah from Jabalia camp. Internet monitor NetBlocks said the internet blackout in Gaza had passed 96 hours, calling it “the longest sustained telecoms disruption” since the war began in a post on X. Israel has concentrated operations on Khan Yunis since announcing on January 6 that it had dismantled Hamas’s military structures in the north. Israeli Defence Minister Yoav Gallant on Monday said intense operations would “soon” wind down in the territory’s south. But Israeli officials have repeatedly warned the fighting will US reclassifies Huthis as terrorist group WASHINGTON: The US will once again consider Yemen’s Iran-backed Huthi rebels a terrorist group, US media reported Tuesday, after previously dropping the classification in 2021. The designation of the Huthis as a “specially designated global terrorist” entity comes amid attacks by the group on shipping and military vessels in the Red Sea. On Tuesday, the US military said it struck Yemen to destroy four antiship missiles “prepared to launch from Huthi-controlled areas”, and which “presented an imminent threat to both merchant and US Navy ships in the region”. It is at least the third time in less than a week that the US has carried out strikes against the Huthis, who have repeatedly taken aim at merchant vessels in the vital Red Sea shipping lane, attacks the rebels say are in support of Palestinians in Gaza, where Israel is battling militant group Hamas. The US military also said the Huthis launched an anti-ship ballistic missile into international shipping lanes on Tuesday, and that a Malteseflagged bulk carrier reported that it was hit but remained seaworthy. The US and Britain targeted nearly 30 sites in Yemen with more than 150 munitions last week, while American forces later attacked a Huthi radar site in what was described as “a follow-on action” related to the previous strikes. The US set up a multinational naval task force last month to protect Red Sea shipping from the Huthis, who are endangering a transit route that carries up to 12% of global trade. The Huthis said they have been targeting Israeli-linked vessels, but Washington said dozens of countries have connections to ships that have been attacked. Washington had previously designated the Huthis as a terrorist group in January 2021, in the waning days of the Donald Trump administration, a move that was reversed the following month by President Joe Biden. The original designation caused outcry from those who said it would complicate the humanitarian response in the country, battered by civil war and much of which is controlled by the Huthis. – AFP Qatar, France broker deal to get aid into Gaza PARIS: Qatar and France have brokered a deal with Israel and Palestinian Islamist group Hamas to deliver urgent medication to about 45 Israeli hostages held by the group in Gaza in return for humanitarian and medical aid for the most vulnerable civilians. The two countries said the aid left Qatar for Egypt yesterday before being taken across the Rafah border crossing. Qatari foreign ministry spokesperson Majed al-Ansari said in a statement the deal would mean “medicine along with other humanitarian aid is to be delivered to civilians in the Gaza Strip, in the most affected and vulnerable areas, in exchange for delivering medication needed for Israeli captives in Gaza”. He did not give details on how much aid or what aid would be delivered to civilians. The office of Israeli Prime Minister Benjamin Netanyahu said two Qatari Air Force planes landed in Egypt yesterday with medicines purchased in France based on an Israeli list. Earlier, Philippe Lalliot, head of France’s foreign ministry crisis centre which organises aid efforts, said negotiations had been going on for weeks and the initial idea had come from the families of some of the Israeli hostages. Specific medical packages for several months, which were put together in France, would be delivered to each of the 45 hostages. The International Committee of the Red Cross will coordinate on the ground. – Reuters B R I E F SFREIGHTERS SEEK AIR CARGO BACK-UP IN RED SEA SEOUL: More manufacturers are seeking to fly their products in the next few weeks as attacks on Red Sea shipping force them to find alternate routes, logistics firms said, a potential boon for a sector dealing with muted postpandemic demand and overcapacity. More than two months of attacks by Yemen’s Houthi militia on ships in the region have affected companies and alarmed major powers in an escalation of Israel’s war with Palestinian Hamas militants in Gaza. While air freight prices have so far remained relatively stable as the shipping crisis coincides with a seasonal lull in demand, data from freight booker Freightos showed rates on a China-to-Europe route had surged 91% week-on-week on Sunday. Price reporting agency TAC Index also said there were signs of an uptick in Chinato-Europe air freight rates this week. “We are talking to many customers already about increased air capacity,“ said Yngve Ruud, head of Air Logistics at global logistics firm Kühne+Nagel. “We have probably 20-30% more discussions and proposals than usual in January.” – Reuters COLD WAVE IN NORTH INDIA DISRUPTS FLIGHTS MUMBAI: A cold wave bringing dense fog this week to parts of northern India disrupted flights for a fourth straight day on Wednesday, delaying more than 100 and forcing cancellations of about 20. Weather authorities forecast five more days of fog, with minimum temperatures on Tuesday ranging from 2°C to 5°C in New Delhi, the capital, and the most populous state of Uttar Pradesh. As many as 109 flights from Delhi’s airport were delayed and 19 cancelled, aviation website Flightradar24 showed. Low visibility resulting from the fog has caused widespread air traffic chaos this week, with hundreds of flights out of New Delhi delayed or cancelled. – Reuters continue for months. The army announced Tuesday the death of two more soldiers in Gaza, bringing to 190 the total number killed since its ground invasion began. The Israeli public has kept up pressure on Netanyahu’s government to secure the return of the hostages. Meanwhile, violence involving regional allies of Iran-backed Hamas – considered a terrorist group by the US and the European Union – has surged since the war began. On Tuesday, Israel’s army said it conducted air and artillery strikes on Hezbollah, Lebanon’s powerful Iran-backed Shiite movement that has exchanged regular crossborder fire with Israeli forces since the war started. “We are already in a regional war even though it’s still at a low simmer,” said Ali Vaez, director of the Iran Project at the International Crisis Group. – AFP A Palestinian girl looks for salvageable items amid the destruction on the southern outskirts of Khan Yunis. – AFPPIC
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Muruku Buntong entrepreneur’s Deepavali snack, made from a still a national favourite 60-year-old recipe, is constantly in high demand. Chicken price float benefits consumers A week after subsidies ended, market prices are competitive and lower than subsidised prices, says expert. Full report —on page 3 Full report —on page 6 Full report —on page 4 Citing protection of country’s interests in terms of diplomatic, economic relations and security as reasons for joining meeting, Anwar says he remains steadfast in defending justice and rights of Palestinians. I will show up at Apec Story on page 2 Full story -on page 2 SCAN TO SUBSCRIBE Bliss of causeless happiness I N a world that constantly seeks reasons and explanations for everything, the idea of causeless happiness may seem puzzling. We are often taught that every emotion must have a cause, a reason or a logic behind it. However, what if we embraced the concept of happiness without a cause? What if we allowed ourselves to experience joy, not because of specific reasons but simply for the sake of it? This idea, although may appear unorthodox, holds the key to a profound understanding of living in the moment and finding inner peace. Our lives are inundated with the “whys”. Why am I feeling this way? Why did this happen to me? Why can’t I be happy? This relentless pursuit of reasoning can be exhausting. It is like being in a constant state of analysis, dissecting every emotion and event. While understanding our emotions is important, the compulsion to justify every feeling with a reason can be a heavy burden. It leads to overthinking and robs us of the simplicity of just being. Causeless happiness is about feeling joy that is not contingent on external circumstances or specific triggers. It is a state of being that comes from within, independent of the happenings around us. This does not mean ignoring our problems or the realities of life. Instead, it is about finding a space of contentment and peace within ourselves that is untouched by the external world. The concept of living in the moment is central to causeless happiness. It is about appreciating the now, without over analysing the past or worrying about the future. This approach does not disregard planning or reflection, rather, it emphasises the importance of being present. When we are truly in the moment, we experience life more fully, and this in itself can be a source of great joy. This concept can be particularly powerful when dealing with extreme emotions. Often, intense feelings come with a barrage of thoughts and the urge to dissect every angle of why we feel that way. By allowing ourselves to experience these emotions without the pressure of finding a reason, we can navigate through them more peacefully. Accepting that “it is what it is” can be liberating. It does not negate the emotion or its intensity but allows us to experience it more authentically. The biggest challenge in embracing causeless happiness is letting go of our deepseated need for reasons. It requires practice and a conscious effort to retrain our minds. It is about shifting our focus from seeking explanations to embracing experiences. This shift can lead to a more balanced and serene state of mind where happiness is not a pursuit but a natural state of being. While causeless happiness is about experiencing emotions without always seeking reasons, it is important to maintain a balance. Reasoning has its place, especially in decision-making and problem-solving. The key is to prevent the need for reasons to overpower our ability to experience and enjoy life. As we navigate life, embracing causeless happiness can be a powerful tool for mental well-being. It is about permitting ourselves to be happy without conditions, to enjoy moments without overthinking, and to experience life in its purest form. This does not mean abandoning reason but rather complementing it with the ability to be in the present, appreciate the unexplained and find joy in just being. In the end, causeless happiness is not about ignoring the complexities of life but about finding a serene space within those complexities where we can be. It is a reminder that sometimes the best moments of life are those that cannot be explained and that true bliss often lies in the simplicity of living in the moment. The writer is a Certified Mental Health and Awareness practitioner specialising in Narcissistic Abuse Recovery. Comments: letters@thesundaily.com Causeless happiness is about permitting ourselves to be happy without conditions, to enjoy moments without overthinking and to experience life in its purest form. – REUTERSPIC MIND THE MIND BY DR PRAVEENA RAJENDRA
11 THURSDAY | JAN 18, 2024 Breach of confidence PICTURE this scenario – A once-esteemed employee, who was an integral part of the company’s fabric, leaves the company. However, this departure is with a clandestine twist. The once-loyal employee is found smuggling the company’s invaluable secrets to a rival, leaving a trail of betrayal in their wake. In this fast-paced information age, companies are often at risk of confidential information theft, especially when such information is entrusted to senior personnel. Striking a balance between protecting the employer’s interests and the employee’s right to seek employment in a similar industry with acquired knowledge and experience from previous employment remains a persistent challenge. In a recent Court of Appeal decision, the court delved into the legal intricacies surrounding employees’ duties regarding confidential information. Background facts Citing a move into a different industry, an employee abruptly tendered her resignation to her former employer. However, it was later discovered that the employee had in fact joined the company’s rival. A further digital forensic investigation unveiled the employee’s copying of the company’s sensitive database and work emails. In response, the company filed a lawsuit against the employee alleging, among others, a breach of confidence. Eventually, the High Court ruled in favour of the company and held the employee to be liable. Dissatisfied, the employee appealed to the Court of Appeal, among others, against the finding of liability. Before Court of Appeal The court affirmed the High Court’s finding that the employee was liable for breach of confidence. To establish a breach of confidence, one must prove three conditions – the information’s confidentiality, communication under an obligation of confidence and unauthorised use to the detriment of the information’s owner. The court found that the employee was bound by strict confidentiality duties as stated in the employment contract during and after the termination of employment. Embrace compassion towards beggars and homeless THERE are still beggars and homeless people on our streets, although fortunately, they are relatively infrequent. Allow me to recount three instances from my encounters and observations. In the first case, after parking my car, I headed to a nearby grocery store. Along the way, I passed a large roll-onroll-off garbage bin situated by the roadside. A man in tattered clothing stood on a wooden stool, leaning over the bin, scouring for discarded food and drinks. Witnessing this pathetic sight, I felt moved. I took out RM10, handed it to him, and suggested he use it to buy some food. He accepted the money, looked at me briefly, tucked the note into his pocket, and resumed searching the bin, seemingly oblivious to my advice. I proceeded with my shopping. Upon my return to the parked car, I encountered the same man again. He emerged from a betting shop, holding a forecast number ticket and sporting a smile. He did not recognise me. I could not help but wonder if he had used the money I gave him for his “investment” rather than purchasing food. In the second case, there was a middle-aged beggar who occupied the five-foot way of an open shop house. He would spread out a worn-out rug to gather coins from those passing by. I handed him RM10 and continued with my tasks. Upon returning after completing my chores, I was taken aback to find the beggar folding his rug, readying himself to depart. Presumably, he had gathered sufficient funds for the day. I held onto the hope that he utilised his collections to procure some decent food. In the third scenario, at the opposite end of town, there was an able-bodied man who opted for idleness instead of employment, choosing to lounge around the fivefoot way of an abandoned shophouse, essentially making it his “home”. He used large and small cardboard pieces as makeshift bedsheets and blankets. Throughout the day and night, he would linger in the area, occasionally returning to his improvised dwelling to rest. The space was strewn with litter, and hygiene seemed to be of minimal concern. To my surprise, I discovered that he relied on the offerings placed by shop owners at altars for sustenance. This unconventional source provided him with his food supply. He would go around collecting and consuming the food and drinks left on these altars, and the shop owners seemed unperturbed, as they replenished their offerings daily. These encounters have left a sombre impression on me, intensifying my desire to assist these individuals on the streets. However, I remind myself not to be excessively judgmental, recognising that each person may have their own stories or reasons for their unfortunate circumstances. While federal and state Social Welfare Departments can provide support by placing them in shelters, it is conceivable that some of them may value their perceived “freedom”. Regardless, it is crucial for us to extend kindness and generosity to them. Our prayers and hopes should centre on the possibility that they will somehow rediscover their self-esteem and ultimately lead more dignified and fulfilling lives. Liong Kam Chong Seremban RM50m to boost public transport insufficient THE letter headlined “Beef up transport connectivity” on Jan 11 in theSun underscores the insufficiency of the government’s allocation of RM50 million for acquiring vans to enhance the first-and-last-mile connectivity of public transport in the Klang Valley. Assuming the price of a new van is RM100,000, the budget proposed by the transport minister would buy approximately 500 vans. In Chiang Mai, Thailand, a city of approximately 1.2 million people, there are 2,700 red bus songthaews, which are converted pick-up trucks that operate as public transport, and are roughly the size of a van. With the Klang Valley population many times larger and covering an expansive area compared with Chiang Mai, 500 vans would be grossly inadequate. Songthaews (literally means “two benches”) can operate either on set routes or can go to any location (within a designated area) that the passenger and the driver can negotiate on suitable terms. They are compact, flexible, cheap, agile, convenient and ubiquitous in the Chiang Mai old city and its surroundings. As the writer suggests, vans that can provide a similar service to songthaews can be a solution, but a more substantial allocation would be needed to address the scale and demands of such a system in the Klang Valley. Simon Wood Taman Tun Dr Ismail COMMENT by Leonard Yeoh and Chen Mei Yan “Striking a balance between protecting the employer’s interests and the employee’s right to seek employment in a similar industry with acquired knowledge and experience from previous employment remains a persistent challenge. Although the employee argued that the company had not sufficiently set out the confidential information, the court disagreed. The court recognised that there could be many expressions of confidential information in the business context, including but not limited to, a list of customers and their details, schedules of information, technology and trade secrets. Since the employee did not state any problems in identifying the confidential information nor raised any allegation that the confidential information was so vague to the extent that the employee could not comply with any injunction, the court was satisfied that sufficient particulars had been disclosed for the court to determine if the information is confidential. The employee further explained that she forwarded the work emails to herself to perform work assigned by the company while she was away from the office. However, the court disagreed. Looking at the company’s evidence, which shows the type of information she transferred and the extent and manner adopted by the employee in transferring the information, the court held that the employee was liable for unlawful copying and accessing the confidential information, constituting a breach of confidence. Key takeaways This case unveils the challenges of safeguarding confidential information in today’s business landscape. The importance of meticulously drafted employment contracts is highlighted, emphasising the need for comprehensive confidentiality provisions during and after employment cessation. The decision serves as a stern warning against employees engaging in surreptitious storage or misappropriation of confidential information without authorisation, especially in this information age where all digital footprints are traceable. This case also urges employees to be more sensitive and careful in handling the information obtained during employment, especially for senior management as it is less likely for them to argue ignorance of the competitive value of this information. In conclusion, this case shapes the legal landscape on confidentiality, providing insights that resonate in today’s technology-driven employment environment. Leonard Yeoh is a partner and Chen Mei Yan an associate with the law firm, Tay and Partners. Comments: letters@thesundaily.com LETTERS letters@thesundaily.com We should not be excessively judgmental as each person may have their own stories or reasons for their unfortunate circumstances. – REUTERSPIC
PROPERTY PROPERTY THURSDAY | JAN 18, 2024 12 Capstone Corporate Suites to change Batu Kawan’s skyline oSarawak-based PE Land breaks ground on the first Grade A, Green Office Tower project in the area PETALING JAYA: Sarawak-based PE Land Sdn Bhd, a pioneer developer in Bandar Cassia, Batu Kawan, broke ground recently for its third project Capstone Corporate Suites, after successfully completing two significant projects in this northern region including the 24-acres awardwinning outlet mall, Design Village Penang. Capstone Corporate Suites is set to be the first Grade A, Green Office Tower in Batu Kawan offering the first-of-its-kind commercial offices and retail units to local and multinational companies seeking a unique and sustainable workspace environment in the northern region. The groundbreaking ceremony was officiated by Penang Chief Minister Chow Kon Yeow, joined by PE Holdings Group managing director James Ling, Pansar Bhd managing director Pemanca Datuk Jason Tai, PE Holdings Group deputy managing director Ronald Ling, Pansar Bhd COO David Tai, and PE Holdings Sdn Bhd CEO Joanna Ling. Chow remarked, “PE Land’s dedication to excellence is evident in every facet of this development. Capstone Corporate Suites epitomises the calibre of workspace that aligns with our aspirations for Penang – a region that welcomes innovation, encourages entrepreneurship, and fosters growth in every sector. It is a testament to our commitment to elevate Penang’s business landscape, providing a hub that aims to amalgamate innovation, productivity, and a collaborative spirit. “And it will also spearhead our commitment to the environment, being designed to fulfil the Malaysia Digital and GreenRE standards.” Capstone Corporate Suites is strategically located adjacent to Design Village, the largest outlet mall in Malaysia, and esteemed Anggun Residences, as well as a 32- acre Linear Park. It occupies a land area of 2.4 acres of the total 40 acres land area owned by PE Land. The gross development value for this project is estimated to be RM500 million, with the project expected to reach completion in 2027. Construction of this 36-storey tower will begin soon after the groundbreaking ceremony by PE Land’s team of local contractors and consultants from the Penang state. The tower will comprise 17 retail lots ranging from 2,110 sq ft to 7,623 sq ft and 395 office spaces ranging from 1,179 sq ft to 3,859 sq ft. That is designed to be flexible. The development will include 1,740 covered parking lots with additional 1,600 carpark lots available next door in Design Village. “We see great potential in Bandar Cassia, Batu Kawan since we started with our maiden project here a decade ago. We believe Design Village Outlet Mall has also been a big contributing factor in transforming this township into one of the most vibrant in Batu Kawan today and in contributing to Penang’s growth story. We are also pleased that our project Anggun Residences achieved 95% take up rate since its launch in 2021. Penang has been a significant home ground for our group after Sarawak, and we continue to strive for innovation and excellence in pioneering significant projects here. Blending state-of-the-art infrastructure with sustainability, Capstone Corporate Suites will also carry the essence of Sarawakian heritage in its design to commemorate our roots,” said Joanna. Capstone Corporate Suite will offer efficient and versatile workspace layouts suitable for modern workstyles, incorporating features of energy-efficient and eco-friendly design elements. The building will boast a Contemporary Atrium Design and Cascading Rooftop Terrace, providing a unique and sustainable workspace environment, making it a landmark development that will seamlessly blends sustainability, innovation, and functionality. The project is intended to address the evolving needs of the community in Bandar Cassia, Batu Kawan, which has transformed over time to accommodate international firms including MNCs looking to set up operations or regional offices, as well as local companies like startups, MSMEs, and SMEs. It also aims to fill the demand gap for Grade A office space in the region for potential foreign direct investment into Malaysia with requirements for contemporary, concise, and well-layout office spaces integrated into modern amenities and infused with green initiatives. Sarawak – compensation in lieu of affordable homes KUCHING: Private housing developers planning on developing large-scale projects in Sarawak are no longer required to build affordable homes starting from the first quarter of this year, Sarawak Premier Tan Sri Abang Johari Tun Openg said. Instead, he said developers involved in projects that span 10 acres or more are required to make compensation in lieu through a housing trust fund which would allow the state government to use these funds for the development of affordable homes on the specific project sites. “We will implement this in 2024 first quarter. We are amending the housing regulations in the state so that we can build quality affordable homes,“ he told the media after visiting the Sungai Bedaun Housing Project site recently. Previously, state laws required the private sector to allocate 30% of housing schemes or mixed development projects to construct affordable homes when the developed land area was 10 acres (4,047ha) or more. “We will discuss the payment quantum, that is, how much the developer needs to pay per acre to this (state) trust fund based on the value of the land and the project’s location. For example, if 30% involves a total of 50 low-cost housing units, we will assess it based on market prices,“ he said. Abang Johari said the decision to take control of affordable housing construction was made as some property developers were not serious in developing such projects. By empowering the state government to oversee the construction of low-cost homes, he hopes to prevent issues of delay in projects such as Sentoria Borneo Samariang Garden, which was supposed to be completed in 2020. On the Sungai Bedaun Housing Project or Package One, which is part of the Darul Hana Development Project, Abang Johari said it is expected to be fully completed by April and the houses would be available with prices starting at RM99,500 per unit for a living space of 750 sq ft. “Residents will have the flexibility to extend their homes according to the established standards without requiring approval from the North Kuching City Council. The state government will pay a deposit of RM10,000 and the remaining amount will be financed through Mutiara Mortgage and Credit,” he said. Covering almost 19ha and comprising 209 housing units, this project involves extended families from Kampung Panglima Seman Lama, Kampung Semarang, and Kampung Pulo Ulu in Seberang Hilir who were selected to purchase homes based on specified criteria. Abang Johari said similar affordable housing projects would be expanded to various areas in the state such as Gedong, Kabong, Asajaya, and Santubong. – Bernama Finology, IFCA collaborate to facilitate financing process KUALA LUMPUR: IFCA Software, the leading Enterprise Resource Planning (ERP) system developer renowned for its flagship PropertyX ERP, has collaborated with Finology Group (Finology), an AsiaPacific fintech company that enables embedded finance. This partnership introduces the integration of Finology’s digital lending solution, Loanplus Home, directly into the PropertyX platform, offering a seamless and innovative experience for property developers and home buyers alike. Loanplus Home empowers real estate developers to: 0 Instant Mortgage Pre-Approval: Obtain real-time mortgage financing pre-approvals from Malaysia’s leading banks, ensuring a swift and efficient process. 0 Targeted Buyer Qualification: Identify qualified buyers based on their loan eligibility, streamlining the property sales process. 0 Digital Loan Application: Enable customers to submit loan applications digitally and track the progress in real-time, enhancing efficiency while offering a seamless financing experience. The real estate industry faces a challenge where up to 70% of bookings are cancelled due to loan application rejections, leading to units being temporarily unavailable for other potential buyers. The collaboration between IFCA Software and Finology aims to address this issue by enabling property developers to prescreen buyers based on their loan eligibility, thus reducing the risk of cancellations and improving sales conversion rates. Capstone Corporate Suites is strategically located adjacent to Design Village, the largest outlet mall in Malaysia. Construction to see improved margins in 2024: Kenanga KUALA LUMPUR: The construction industry’s margins are expected to improve in 2024 as older contracts with low margins tail off and new contracts with more normalised margins start to contribute, said Kenanga Research. In a note recently, it said the industry is poised for margin recovery as newlysecured contracts have reflected cost inflation. “In addition, it has become increasingly common for contracts to carry price escalation clauses to safeguard the margins of contractors post-pandemic,” it said. Hence, the research house retained its “overweight” call for the construction sector. “After the lull last year, we expect a fresh wave of public infrastructure projects to finally hit the market in 2024.” Projects that are high on the priority list include the RM45 billion Mass Rail Transit Line 3 (MRT3) or MRT Circle Line which will provide connectivity to the existing MRT, Light Rail Transit (LRT), Monorail and train lines through interchange stations as well as the Bayan Lepas LRT to ease the chronic traffic congestion in Penang. The research house also noted that the government has committed to expediting ongoing projects in East Malaysia such as the Pan Borneo Highway and the SabahSarawak Link Road. On private sector construction, it said the sector would stay vibrant, underpinned by massive investment in new semiconductor foundries and data centres. – Bernama
THURSDAY | JAN 18, 2024 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: advertise@thesundaily.com Bursa upbeat on corporate earnings, fundraising activities oExchange to adapt to changing market conditions by enhancing technological infrastructure and strengthening regulatory frameworks PETALING JAYA: Bursa Malaysia Bhd foresees a trajectory towards higher corporate earnings and expanded fundraising activities in 2024, driven by a strengthened economic growth outlook for the year. Based on a recent World Economic Outlook report, the International Monetary Fund has projected slower global gross domestic product (GDP) growth from 3% in 2023 to 2.9% in 2024, amid a possible further slowdown in China’s economy, volatile commodity prices stemming from risks of extreme climate and geopolitical shocks, as well as subdued global financial conditions. Despite the global projections, CEO Datuk Muhamad Umar Swift said, the outlook for Asean and Malaysia appears more bullish, with the GDP of the Asean-5 countries, comprising Indonesia, Malaysia, the Philippines, Singapore and Thailand, expected to grow at a faster pace of 4.5% in 2024, compared with 4.2% in 2023. “The accommodative policies implemented by central banks in advanced economies may positively impact emerging markets including Malaysia, where the lower borrowing costs in hard currencies are likely to bolster the emerging markets’ carry trade. “On the domestic front, Malaysia’s economy is poised for improvement in 2024, with the Ministry of Finance projecting 2024 GDP growth at 4% to 5%, up from the estimated 4% growth in 2023. This optimism is supported by resilient consumer spending and an anticipated further recovery in the tourism industry, facilitated partly by the 30-day visa free policy for visitors from China and India,” he told SunBiz. In addition, he said the progress of multiyear investment projects, along with catalytic initiatives under the Madani Economy framework – including the National Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030), as well as the mid-term review of the 12th Malaysia Plan – are expected to stimulate activities in the equity market. “Considering these factors, the stronger economic growth forecast for 2024 will pave the way for higher corporate earnings and fundraising activity expansion,” he said. Muhamad Umar said the exchange is looking forward to the year albeit anticipating continued challenges in the global economic landscape, due to factors such as evolving trade dynamics, geopolitical shifts and potential commodity price volatility. “Our hopes for 2024 are centered on navigating these uncertainties prudently and with resilience, leveraging our diversified portfolio of listed companies and implementing strategic initiatives to mitigate risks and capitalise on opportunities,” he added. Specifically, he said Bursa Malaysia aims to adapt to changing market conditions by enhancing technological infrastructure and strengthening regulatory frameworks. “These measures are essential not only for maintaining market stability, but also for fostering an environment that instills confidence among PETALING JAYA: AGX Group Bhd, a third-party logistics solutions provider, recorded RM3 million profit after tax (PAT) on the back of revenue of RM47.3 million for its third quarter ended Sept 30, 2023 (Q3’23). For the cumulative nine-month period(9M23), revenue amounted to RM138.16 million with PAT of RM9.17 million. There are no comparative figures for the preceding corresponding period as this is the first interim financial report announced by the company ahead of its listing on the ACE Market of Bursa Malaysia Securities, slated for Feb 7. For the quarter under review, the group’s aerospace logistics segment was the largest contributor, generating about RM19.71 million or 41.67% of total revenue. Sea freight forwarding was the second largest revenue contributor with 31.71% followed by air freight forwarding, warehousing and 3PL services and road freight transport with 16.18%, 6.21% and 4.23% respectively. In terms of geographical segmental revenue, foreign operations accounted for about 79.24% of the total, with the Philippines being the group’s largest business operation and accounting for about 54.08% of total revenue. This is followed by operations in Malaysia, Singapore, South Korea and Myanmar with 20.76%, 11.19%, 8.12% and 5.84% respectively. AGX Group CEO Datuk Ponnudorai Periasamy said: “We will continue our focus on our key strengths namely in sea and air freight forwarding and the aerospace logistics segments. We believe that although revenue from the sea freight forwarding business for the year has come off from the highs in 2021 and 2022 due to higher sea freight rates resulting from the pandemic, our aerospace logistics business has continued to grow and we expect this to spur our group moving forward.” He added that the group is excited about the prospects of its expansion plans pursuant to its initial public offering (IPO) and hopes to embark on its next stage of growth with part of the IPO proceeds expected to fund the setting up of new offices and warehouses in Johor and Penang as well as an office in Busan, South Korea. The company has earmarked 48.66% of its IPO proceeds for working capital and 25.76% for business expansion. IILM reissues short-term sukuk worth US$840m KUALA LUMPUR: The International Islamic Liquidity Management Corporation (IILM) has reissued US$840 million (RM3.96 billion) worth of short-term sukuk. In a statement, the international organisation which develops and issues short-term syariah-compliant financial instruments said the sukuk were issued across three tenors of one, three, and six months, respectively. This marks IILM’s first auction of 2024. The three series were priced at 5.4% for US$250 million for the one-month tenor; 5.4% for US$290 million for the threemonth tenor; and 5.3% for US$300 million for the six-month tenor. “The IILM’s sukuk reissuance witnessed a competitive tender among primary dealers and investors from the markets across the Gulf Cooperation Council region and Asia. “The strong order book of over US$1.93 billion represents an average bid-to-cover ratio of 230%,” said IILM. CEO Mohamad Safri Shahul Hamid said the successful issuance reflects the markets’ healthy appetite and confidence in IILM’s short-term Islamic papers. The issuance forms part of IILM’s “A-1” (S&P) and “F1” (Fitch Ratings) rated US$4 billion short-term sukuk issuance programme. The short-term sukuk is distributed by a diversified network of 10 primary dealers globally, namely Abu Dhabi Islamic Bank, Al Baraka Turk, Boubyan Bank, CIMB Islamic Bank Bhd, Dukhan Bank, First Abu Dhabi Bank, Kuwait Finance House, Maybank Islamic Bhd, Qatar Islamic Bank, and Standard Chartered Bank. – Bernama investors. We remain committed to our role in driving economic activities and providing a robust platform for investors amid the dynamic global economic landscape.” Muhamad Umar reiterated that the exchange will continue with its ongoing initiatives to boost market vibrancy and will work closely with regulators to ensure market efficiency, accessibility, and liquidity in support of participants. Moreover, the exchange remains committed in continuing its efforts to advance environmental, social and governance (ESG) practices in the local capital market. To support companies at different stages of ESG maturity, it will continue to facilitate the upskilling of corporate leaders and employees through collaborations with relevant partners as the initiative aligns with the exchange’s commitment to capacity building activities in accordance with its disclosure requirements. “Bursa Malaysia, alongside other influential entities, will continue to focus on increasing corporate competitiveness and aligning with the nation’s climaterelated commitments. Anticipating the ongoing implementation of key blueprints such as NETR, NIMP 2030, the bourse is poised to play a pivotal role in supporting the nation’s transition to a lower carbon economy,” said Muhamad Umar. He said the exchange envisions a cohesive effort involving various stakeholders, including ministries, agencies, and other entities, to encourage ESG adoption across businesses of all sizes. GVT, Yutong sign deal on EEV and EV bus assembly, distribution PETALING JAYA: GVT Sdn Bhd, a subsidiary of GoAuto Group, has signed an agreement with China’s Yutong Bus Co Ltd for local assembly (CKD) and distribution of energy efficient (EEV) and electric (EV) buses. The agreement was signed by GVT executive director Wan Ahmad Wan Omar and Yutong Asia-Pacific regional manager Michael Lu. GVT is adding EV and EEV bus models from China’s Yutong, bringing the total to 14 models. In addition, GVT has received an official order for 40 EEV buses. “Yutong is among the world’s largest electric bus manufacturers, experiencing significant growth. They boast a remarkable daily production exceeding 400 units and have achieved a cumulative global sales figure of 175,000 units of new energy buses. In 2023 alone, Yutong sold an impressive 36,518 units of new energy buses“ said Wan Ahmad. The CKD operation for Yutong’s EV and EEV buses will take place at Malaysia’s first electrical assembly factory, NexV Manufacturing Sdn Bhd, situated in Chembong, Negeri Sembilan. NexV Manufacturing, a joint venture between Careplus Group and GoAuto Group, is dedicated to developing a “Green Technology Facility”. It is expected to start operations in first-quarter 2025. █ BY GLORIA HARRY BEATTY sunbiz@thesundaily.com Muhamad Umar says the exchange remains committed to advancing environmental, social and governance practices in the local capital market. – BERNAMAPIC ACE Market-bound AGX posts RM3m net profit for Q3
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 14 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Exemption for unit trusts seen boosting capital market PETALING JAYA: The exemption of capital gains tax (CGT) is needed to boost capital market performance and to benefit more than 90% of investments in the unit trust industry that are made by individual investors. PwC Malaysia tax partner Jennifer Chang said the exemption will encourage more unit trusts to be set up in the capital market “If you impose CGT on unit trusts and you impose taxes on foreign-sourced income from unit trusts, indirectly you are taxing people because over 90% of unit trust holders (are ordinary people). “It makes sense to exempt unit trusts because if you and I (individuals) invested directly in Malaysian companies or in foreign investments, we are not taxed when we make capital gains or we bring back the money from overseas. If this exemption promotes investments in unit trust, then it would mean more unit trusts will be created,” she told Bernama. On Tuesday, the government announced it has agreed to exempt unit trusts from CGT from Jan 1, 2024 to Dec 31, 2028 and taxes on foreign-sourced income from Jan 1, 2024 to Dec 31, 2026. Finance Minister II Datuk Seri Amir Hamzah Azizan indicated that through various engagements, one unintended consequence impacted by the CGT is on unit trust as more than 90% of unit trust holders are individuals. CGT was first announced in Budget 2024 by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the exemption will reduce the cost of doing business and give more time for industry players to familiarise themselves with CGT as the exemption will only run between Jan 1, 2024 and Dec 31, 2028. He added that the move will help improve unit trust holders’ net investment returns. “In some ways, the government is being pragmatic in its approach to ensure its fiscal position is sound by striking the right balance between solidifying its financial position while at the same time keeping an environment that will encourage our society to save and invest responsibly via unit trusts. “Effectively, this can have a positive spillover effect on Bursa Malaysia and capital market industries,“ Mohd Afzanizam said. TDM invests RM29m for two hospitals KUALA TERENGGANU: Plantation and healthcare outfit TDM Bhd, a subsidiary of the Terengganu state government, has invested RM29.1 million to build two hospitals this year. Its executive director, Najman Kamaruddin, said the group’s healthcare sector contributes more than 50% to overall profit and the two new hospitals are expected to increase earnings considerably. “An investment of RM14.1 million is allocated for the construction of the 100-bed KMI Chukai Medical Centre in Kemaman, while Razif Hospital, in Klang, Selangor, involves an investment of RM15 million for the takeover process. “Both of these hospitals will be managed by TDM’s subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare),” he said during a press conference after presenting RM2.9 million to the Terengganu State Heritage Trust Fund Board (LTAWNT), which is part of the company’s joint venture profit agreement for 2022, at Wisma Darul Iman, here yesterday. Najman also said the group plans to expand its medical network on the East Coast in the next five years as an effort to meet the increasing demand for the health services offered by TDM. “So far, there are five hospitals under the KMI Healthcare network, namely KMI Kuala Terengganu Medical Centre, Kuala Terengganu; KMI Kuantan Medical Centre, Pahang; KMI Kelana Jaya Medical Centre, Selangor; KMI Taman Desa Medical Centre, Kuala Lumpur, and KMI Tawau Medical Centre, Sabah. “We do not have a branch in Kelantan. So, we plan to create an ‘East Coast Belt’ within the next five years to meet customer demand and continue to compete in the healthcare sector in Malaysia,” he said. Najman said that in addition to healthcare, TDM will maintain its focus on plantations which is the company’s second focus sector. – Bernama Firm pays RM2.9m in profit-sharing to LTAWNT PETALING JAYA: TDM Bhd yesterday paid RM2.939 million to the Terengganu State Heritage Trust Fund Board (LTAWNT) as part of a profit-sharing agreement for the companies’ joint venture (JV). Following a State Exco meeting at Wisma Darul Iman in Kuala Terengganu, TDM executive director Najman Kamaruddin presented the profit-sharing cheque to LTAWNT secretary Nor Azam A Rahman @ Yusof. The event was witnessed by Tengku Seri Bijaya Raja (Datuk Seri Tengku Farok Hussin Tengku Abdul Jalil), who serves as Terengganu State Government Secretary and TDM chairman. “The company once again had the opportunity to generate greater joint venture profits for LTAWNT. This profit is proof of the company’s commitment to providing a sustainable return for each entrusted investment. This achievement was supported by the disciplined execution of the company’s strategic business plan and unwavering support from our dedicated staff,” said Najman. The management of TDM’s plantation division is managed by TDM Plantation Sdn Bhd (TDMP) through a JV established in 1996. Within this arrangement, TDMP owns and operates 1,336 hectares of oil palm plantations located in Air Putih Estate, Kemaman, on behalf of LTAWNT. The company is strategically emphasising the enhancement of sales for Certified Sustainable Palm Oil and Certified Sustainable Palm Kernel to take advantage of the higher premiums associated with these certifications. Najman said that TDM is committed to sustaining its momentum by concentrating on enhancing the sustainability and longevity of the plantation division which involves implementing innovative techniques to boost efficiency, minimise labour requirements, and attain optimal long-term outcomes. BCX, MPIA to enhance voluntary RE certification PETALING JAYA: Bursa Carbon Exchange (BCX), a wholly owned subsidiary of Bursa Malaysia Bhd, is collaborating with the Malaysian Photovoltaic Industry Association (MPIA) to enhance Malaysia’s voluntary renewable energy certificate (REC) market. The partnership, formalised through a memorandum of collaboration (MoC) signed during the MPIA Solar Roadshow 2024 on Tuesday, will focus on four key areas: 0 Joint promotion of solar RECs, enabling BCX to offer REC trading to MPIA members, corporate entities and relevant stakeholders; 0 Advancing market integrity and awareness of REC ecosystem, focusing on the appropriate usage of RECs and addressing concerns related to double claiming by corporates, including transparent reporting on solar energy claims; 0 Exploration of potential solar REC supply from MPIA members for the inaugural REC auction, continuous trading and off-market transactions on BCX; and 0 Support for the prospective development of an Asean voluntary REC framework. Bursa Malaysia Bhd CEO Datuk Muhamad Umar Swift said the MoC with MPIA signifies their joint support in the implementation of the National Energy Transition Roadmap (NETR), and is a direct response to the growing corporate demand in Malaysia for RECs. “This is a crucial step forward in enriching Chong (left) and Muhamad Umar signing the MoC. oBursa Carbon Exchange and photovoltaic industry body aim for greater transparency, efficiency and cost-effectiveness our Exchange’s offering with solar RECs, following our recent collaboration with Sarawak Energy Bhd to include their hydro RECs in our suite of REC products. We are committed to establishing BCX as a one-stop syariah-compliant environmental exchange with a suite of offerings, which aligns with Bursa Malaysia’s vision as a multi-asset exchange,” he added. The collaboration between BCX and MPIA aims to establish a transparent, efficient and cost-effective market for REC transactions. This will contribute towards realising the NETR, where the renewable energy (RE) strategic development roadmap envisions a substantial increase in Malaysia’s RE capacity, targeting 70% of installed RE capacity in the power mix by 2050. “We are thrilled with our collaboration with BCX, which provides a two-prong benefit, where we provide access to solar RECs for those who wish to be RE1001 affiliated to reduce their scope 2 electricity emissions while BCX provides opportunities to MPIA members to supply solar RECs, thereby generating additional avenue to improve the financial viability of their photovoltaic (PV) projects. We also believe that the offer of solar RECs on BCX will make renewable energy more accessible for corporations,” said MPIA president Davis Chong. BCX, the world’s first syariah-compliant carbon exchange, was established as a voluntary carbon market initiative and this initiative was announced by the government during the tabling of National Budget 2022. BCX aims to democratise access to environmental products, thereby fostering a sustainable and resilient environmental products market. MPIA, a non-profit entity, provides a credible and representative platform for the Malaysian solar industry. Investment managers group expresses gratitude PETALING JAYA: The Federation of Investment Managers Malaysia (FIMM) has expressed its gratitude to the government for its decision to exempt unit trusts from Capital Gains Tax and Foreign-Sourced Income taxes. The announcement on the exemption was made by Finance Minister II Datuk Seri Amir Hamzah Azizan on Tuesday. FIMM said in a statement yesterday the decision is poised to positively impact more than 13 million individual unitholders, including those who have invested directly in unit trust funds or through their Employee Provident Fund savings. “From our industry engagements, we observe that a significant number of these investors are pensioners and individuals approaching retirement age. The newly granted tax exemptions will tremendously assist in providing them with tax-free returns from their unit trust investments. This move is especially beneficial for those diligently replenishing their post-pandemic-depleted savings, whilst optimising their potential returns,” it said. “Unit trust funds have been major contributors to the capital market since the 1990s, enabling millions of local individuals across diverse income segments to participate in the domestic and foreign capital markets without requiring a large initial investment amount to start. This has fostered inclusivity and accessibility.”
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 15 KUALA LUMPUR: The government’s measures to implement reforms and execute fiscal consolidation will further strengthen Malaysia’s macroeconomic foundation, said Manulife Investment Management (Manulife IM). Senior portfolio manager, equities Kenglin Tan said while Malaysia’s economy is expected to grow between 4% and 5% in 2024, one of the key measures that have been introduced by the government is the economic tie-up between Malaysia and Singapore to set up a special economic zone (SEZ). “The government is also trying to attract a lot of foreign direct investment (FDI) by being business-friendly and investor-friendly. “The recent exemption of capital gains tax (CGT) on unit trust is another sign that the government is capital markets friendly,” she said at the Manulife IM 2024 investment outlook media briefing yesterday. Previously, Finance Minister II Datuk Seri Amir Hamzah Azizan had said that the exemption in foreign-sourced income tax is effective from Jan 1, 2024 until Dec 31, 2026 while the exemption on CGT takes effect from Jan 1, 2024 until Dec 31, 2028. In addition, the implementation of targeted subsidies or social assistance has shown that Malaysia is resolved to strengthen its biggest fiscal position and drive economic growth at the same time. “The Malaysian equity market has a strong start year to date and we are already seeing activities in the construction and real estate sector. Hopefully, as this continues and activities pick up, it should bode well for the economy as a whole. “Also, we have a lot of undervalued stocks in the equity market and from there on, it should then spread to other sectors like the financial sector as well as the industrial sector,” Tan said. Meanwhile, chief investment officer, Asia (ex-Japan) fixed income Murray Collis said Manulife IM does see the potential for the ringgit to stabilise in 2024. “This is driven by two factors. Firstly, the US Federal Reserve moved into a rate cut and secondly, we do expect to see some improvement, particularly in the Malaysian current account. “In 2023, the current account surplus was negatively impacted by lower commodity exports but it can pose some improvements this year from a projected increase in tourism and the Malaysian government announcement of visa-free access for China and India travellers,” he said. Collis said Manulife IM is more neutral on the Malaysian bond market as it is not as relatively attractive compared to some of the higher-yielding markets in the region. “But it will be similar to other markets by seeing the direction set from the global markets this year. Importantly, the Malaysian government bond yield is just below the US Treasury if we look at the 10 years about 3.8%,” he said. – Bernama ‘Govt moves will put M’sian economy on stronger footing’ oManulife IM says key measures include special economic zone withSingapore and attracting foreign capital with investor-friendly policies Boost PayFlexTM goes nationwide KUALA LUMPUR Boost, a regional fintech leader, has continued to expand its syariahcompliant PayLater solution Boost PayFlexTM to all in-app transactions, in addition to QR code payments. With this innovative solution, prescored Boost app users with premium wallet accounts can enjoy wider access to a controlled syariah-compliant credit line. The credit line provided can be utilised to stretch payments by up to 3-month installments instore at over 1.8 million DuitNow QR merchants across Malaysia, as well as to topup the Boost wallet balance, which enables PayLater options for all in-app transactions including bill management, online shopping, food delivery, and more. Boost group CEO Sheyantha Abeykoon said they remain steadfast in their commitment to address real market demands and drive greater financial inclusion via their robust fintech ecosystem. “Our years of financing experience has empowered us to stay at the forefront of innovation and embrace regulated practices that guarantee responsible financing for all. Having successfully taken up the mantle of serving MSMEs via our AI-based microfinancing business, we are now further expanding this financing facility to a wider base of consumers,” he added. Boost chief product and innovation officer Karthik Bhaskaran said that every step in developing Boost PayFlexTM has been meticulously guided by their commitment to empower users to take charge of their spending and manage their finances seamlessly. “The controlled credit line of Boost PayFlexTM is offered responsibly, customised to what each user can reasonably afford – which safeguards customers – while also providing them with extensive accessibility to flexible payments nationwide, both online and in-store, on our all-in-one fintech app. Our goal is to further accelerate greater financial inclusion via responsible financing,” he added. For every ringgit spent using Boost PayFlexTM, users will earn up to 3 Boost Stars, depending on their BoostUP rank. All Boost Stars accumulated can be redeemed for additional savings and rewards via the BoostUP Loyalty Programme, such as “Pay With Stars” direct discounts, Partner Wallet cash vouchers, and more. Exsim gets RM158.5m financing from AmBank for suites project KUALA LUMPUR: AmBank Group has granted RM158.5 million financing facilities to Lembaran Beruntung Sdn Bhd (a member of Exsim) to part finance the development costs for its latest project Branniganz Suites @ Bukit Bintang. The 50-storey tower comprising 269 units of serviced apartments (HDA units), 490 units of office suites (non-HDA units), and three retail lots is situated within close proximity to prime areas in KL’s Golden Triangle. As part of the bank’s support in financing sustainable real estate developments, particularly in prime urban areas, this marks the 14th project in which the bank has financed for Exsim, the first being in 2008. To date, Exsim has launched 38 projects with a GDV close to RM16 billion. AmBank Group CEO Jamie Ling said they are happy to support Exsim in their growth and sustainability journey. Meanwhile, business banking managing director Christopher Yap said that as their latest project is located in the heart of the city, they can expect that prospects will be positive for Branniganz Suites @ Bukit Bintang. Meals in Minutes raises US$1.5m to fuel expansion plans KUALA LUMPUR: Malaysia-based food startup Meals in Minutes has secured US$1.5 million (RM7 million) in a seed round led by an earlystage venture fund and seed accelerator, 500 Global, with participation from a private investor. This fresh round of capital will fuel Meals in Minutes’s growth across Malaysia and Singapore, including establishing a presence in the UK. The funding will also be focused on the research and development to expand Meals in Minutes’s selection of food products and build a stronger marketing campaign to reach greater target audiences across all markets. CFO Vin Vin Khu said the funding will be focused on achieving key milestones such as launching in the UK market, product development, and building a robust foundation for future growth across all markets. Launched in 2020 by Brandon Lim and Khiara Mia, founder and co-founder of Meals in Minutes respectively, the food startup serves a brand new advanced meal kit concept with its frozen vacuum-packed ready-to-cook meals, allowing consumers to whip up a gourmet meal within 15 minutes. All meals are flash-frozen, and individually portioned to reduce food wastage with no genetically modified ingredients or additional artificial substances, and are fully Halal, HACCP and ISO 22000 certified. “Meals In Minutes was founded with the vision of simplifying cooking for individuals leading busy lives, offering them the opportunity to enjoy high-quality, clean, and nutritious meals without the associated hassle and requisite culinary skills. Additionally, recognising the considerable advantages of this concept, we anticipated its positive impact on business and cafe owners who aspire to provide food services but lack the necessary equipment and resources to operate a fully equipped kitchen,” said Lim. Today, Meals in Minutes is available in Malaysia across multiple premium grocery stores including Jaya Grocer, Village Grocer, Ben’s Independent Grocer and selected 7- Eleven stores. Meals in Minutes will continue to expand and is constantly on the lookout for funding and partnership opportunities. Meals in Minutes’s sustainable packaging of their food products.
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 16 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM China’s 2023 GDP shows patchy economic recovery Policy insiders expect Beijing will maintain a similar growth target of around 5% for this year, but analysts say that may be a tall order even with additional stimulus. Cyclical problems such as the property crisis are colliding with deep-seated structural issues such as an over-reliance on debt-fuelled investment and infrastructure, rather than steps to broaden and deepen consumption. At a press conference in Beijing, NBS head Kang Yi said China’s 2023 growth was “hard won”, but added the economy faces a complex external environment and insufficient demand this year. Stocks in China, already plumbing five-year lows, tumbled after the latest disappointing data as did Chinese firms listed in Hong Kong, while the yuan eased. As businesses remained wary of adding workers in the face of many uncertainties, the nationwide survey-based jobless rate increased to 5.1% last month from November’s 5.0%, NBS data showed. NBS also resumed the publication of youth unemployment data, which it had suspended for five months. The December survey-based jobless rate for 16 to 24 years olds, excluding college students, was at 14.9%, compared with a record high of 21.3% in June. Recent data had suggested the economy was starting this year on shaky footing, with persistent deflationary pressures and a slight pick-up in exports unlikely to kindle a quick turnaround in lacklustre factory activity. December bank lending was also weak. Adding to concerns over China’s longer-term growth prospects, the population fell for a second consecutive year in 2023. The total number of people in China dropped by 2.08 million to 1.409 billion last year, a faster decline than in 2022. – Reuters People walking past a shopping mall in Beijing. – AFPPIC oRetail sales weak while property downturn deepens Indonesia central bank keeps rates unchanged JAKARTA: Indonesia’s central bank kept policy rates steady yesterday to stabilise the rupiah and keep inflation within target, but said it would be patient over its next moves with room to cut rates dependent on the currency. Bank Indonesia (BI) left unchanged its benchmark seven-day reverse repurchase rate at 6.00%, where it has been since October, as unanimously expected by economists surveyed by Reuters. Its two other policy rates were also unchanged. Global market uncertainty has eased, BI Governor Perry Warjiyo said, helping the rupiah stabilise and even showing tendency to strengthen as a tightening cycle by advanced economies is seen ending. The central bank predicts the US Federal Reserve starting easing in the second half this year, totalling 75 basis points. Asked about room for BI to start easing, the governor said that would depend on how quickly the rupiah can strengthen, the inflation rate and economic growth. “We will remain patient to monitor domestic and global conditions.” The rupiah was unchanged after the announcement to keep rates steady and traded around 15,640 per US dollar yesterday, down 0.34% from a day earlier. BI targets inflation at a range of 1.5% to 3.5% this year, below 2023’s target of 2% to 4%. Indonesia’s economic activities slowed last year amid declining exports and weakening household spending. Gross domestic product growth in the third quarter was at its weakest in two years. BI maintained its forecast that growth in Southeast Asia’s biggest economy would pick up this year to within a range of 4.7% to 5.5%, from 2023’s forecast of 4.5% to 5.3%, on rising spending for an election and as the current government rushes to finish infrastructure projects. With inflation staying within target, most economists have predicted BI’s next move will be a cut, though some disagree on the timing, which may depend on the rupiah exchange rate’s stability. “The central bank is unlikely to have any impetus to provide dovish guidance or bring forward policy easing, until clarity emerges on the exogenous developments,” said DBS economist Radhika Rao. – Reuters Thailand orders traders to suspend diesel exports BANGKOK: Thailand has ordered traders to suspend diesel exports while Thai Oil Plc repairs its No. 3 crude distillation unit (UDC) in Chonburi province, a government official said yesterday. It was unclear how long the export suspension would last, but Energy Ministry director-general Sarawut Kaewtathip said it was aimed at preventing local shortages of diesel during the unit’s 13-day maintenance period ending on Jan 28. Thai Oil operates a 275,000-barrels per day (bpd) refinery located near the port of Laem Chabang in Sriracha, Chonburi province. The No. 3 CDU, the largest among the plant’s three crude units, has the capacity to process 180,000 bpd of oil. Sarawut said the ministry’s energy business department had met with traders and refineries to prepare measures to prevent and solve any shortages. There are no problems with supply of gasoline and jet fuel but high-speed diesel supply is “quite tight”, he said. “The department has ordered oil traders to suspend the export of high-speed diesel, unless necessary, in order to increase domestic supply to meet demand.” Up to 20% of legal diesel reserves can also be sold to ensure sufficient supply, said the director-general. In the first 11 months of last year, Thailand exported five billion litres of diesel, worth US$3.6 billion (RM17 billion) or about 1.4% of total exports. – Reuters Japan Airlines names first female president TOKYO: Japan Airlines (JAL) named its first female president yesterday, a former cabin attendant who rose through the ranks to senior management, taking a deeply symbolic step in a country struggling to close a vast gender gap at work. Mitsuko Tottori (pix), a senior managing executive officer who joined JAL in 1985, the year it suffered one of the worst crashes in airline history, will become president from April 1. The appointment comes as Japanese companies face increasing pressure to boost gender diversity and tackle a gender pay gap that is the worst among the Group of Seven nations and almost double the average of the OECD grouping of advanced economies. “There are female employees out there who are struggling with their career steps or going through big life events,” Tottori told a news conference. “I hope my appointment as a president can encourage them or give them the courage to take the next step.” The change comes as the airline seeks to recover from the pandemic-era downturn and tourists flock back to Japan. Airline safety is under a fresh spotlight after a collision between a JAL plane and a Japanese Coast Guard aircraft at Tokyo’s Haneda Airport this month. All 379 people aboard the airliner escaped as it burst into flames. JAL has said Tottori acquired a “high level of insight and field experience” in safety operations and service. JAL has set itself a target for women to make up 30% of managers across the group by the end of the fiscal year to March 2026. By the end of March last year, the corresponding figure was 22.8%. – Reuters BEIJING: China’s economy grew 5.2% in 2023, slightly more than the official target, but the recovery was far shakier than many analysts and investors expected with a deepening property crisis, mounting deflationary risks and tepid demand casting a pall over the outlook for this year. Expectations that the world’s second-largest economy would stage a strong post-Covid bounce quickly fizzled as the year progressed, with weak consumer and business confidence, mounting local government debts and slowing global growth sharply weighing on jobs, activity and investment. “The recovery from Covid – disappointing as it was – is over,” according to China Beige Book International’s latest survey released yesterday. “Any true acceleration (this year) will require either a major global upside surprise or more active government policy,” the private data collector said. A slew of economic readings early yesterday suggested it lost more momentum heading into the new year, despite a flurry of government support measures. Gross domestic product (GDP) grew 5.2% in October-December from a year earlier, data from the National Bureau of Statistics (NBS) data showed, quickening from 4.9% in the third quarter but missing a 5.3% forecast in a Reuters poll. On a quarter-by-quarter basis, however, GDP grew 1.0%, slowing from a revised 1.5% gain in the previous quarter. Some December indicators released along with the GDP data were more grim, suggesting the country’s protracted property crisis is deepening despite government efforts to prop up the sector. Other data for last month showed retail sales growth slowed and investment remained tepid, with only industrial output showing some signs of improvement.
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 17 iPhone takes top spot in smartphone sales SAN FRANCISCO: Apple’s iPhone for the first time became the world’s biggest selling smartphone after rival Samsung’s 12-year run as leader, data showed. According to data from the International Data Corporation (IDC) released on Monday, the iPhone stole Samsung’s crown last year with 234.6 million units sold, compared with the South Korean firm’s 226.6 million units. The US tech giant commanded a 20.1% market share ahead of Samsung’s 19.4%, the IDC said. Analysts from the closely watched market tracker said Apple’s rise was due to the success of premium devices such as the iPhone. They also pointed to an increasingly fragmented market for smartphones that run on the Android operating system, citing low-end Samsung rivals such as Transsion and Xiaomi as well as Honor and Google. The success of Huawei’s well-received offerings in China also had an effect on Samsung’s drop in sales, the IDC said. The sales data came ahead of the latest release of Samsung models expected at an event in California today. According to IDC, global smartphone shipments declined 3.2% to 1.17 billion units last year, though the group said the industry was recovering after a sluggish period. “Growth in the second half of the year has cemented the expected recovery for 2024,” the IDC said in a statement. – AFP Google eliminates hundreds of jobs in ad team tweak SAN FRANCISCO: Google on Tuesday confirmed it is eliminating “a few hundred” positions from its global ad team, amid a push to use artificial intelligence for efficiency and creativity. The job cuts to its “large customer” sales team are intended to result in better support for small and medium size businesses advertising on Google’s platform, according to the internet giant. Expansion of small business ad teams at Google was expected by the company to result in increased hiring this year. Google made no mention of generative AI, which is disrupting many sectors including advertising. Last week, Google’s cloud computing unit announced new AI tools to help retailers “personalise online shopping, modernise operations and transform in-store technology rollouts”. Google cited research indicating that some 80% of US retailers feel it is urgent to adopt generative AI in their operations. “In only a year, generative AI has morphed from a barely recognised concept to one of the fastest-moving capabilities in all of technology and a critical part of many retailers’ agendas,“ Google Cloud strategic industries vice-president Carrie Tharp said in a statement. New Google AI tools included enabling retailers to easily embed virtual agents in websites or mobile apps to provide personalised help and recommendations to shoppers. Google AI is also being put to work analysing product images and producing product descriptions or terms suited to optimise discovery in online searches, the company said. Google laid off around 12,000 people this time last year, 6% of its workforce, in the face of inflation and rising interest rates. The Silicon Valley company has since invested heavily in generative AI. – AFP UK inflation unexpectedly rises to 4% in December LONDON: Britain’s annual rate of consumer price inflation rose for the first time in 10 months in December, increasing to 4% from a more-than-two-year low 3.9% in November, official figures unexpectedly showed yesterday. A rise in tobacco duty lay behind the increase, the Office for National Statistics said. A Reuters poll of economists had pointed to a fall in inflation to 3.8%. The data, which follows bigger-than-expected falls in inflation in recent months, potentially adding to concerns at the Bank of England (BoE), which raised interest rates to a 15-year high of 5.25% in August. The rise in Britain’s inflation rate followed increases seen in the euro zone and United States in December. Sterling rose against the US dollar after the decision, which may dampen financial markets’ conviction that the BoE will start cutting interest rates in May this year. The central bank forecast in November that it would take until late 2025 to return inflation to its 2% target, but many economists now think this could happen as soon as April or May this year due partly to a slide in wholesale gas prices. Surging gas prices following Russia’s A vape, tobacco and cannabidiol sign in London. – REUTERSPIC oHigher tobacco duty behind increase, says statistics office invasion of Ukraine pushed British inflation to a 41-year high of 11.1% in October 2022, adding significantly to existing inflation pressures from supply chain difficulties following the Covid-19 pandemic. Yesterday’s figures showed that core inflation – which excludes volatile food, energy, alcohol and tobacco prices – was 5.1% last month , the same rate as November. Services inflation increased to 6.4% last month from 6.3% in November. The BoE looks at both core CPI and services inflation as a better guide to underlying price pressures in the economy, especially those caused by rapid wage growth. Figures on Tuesday showed average weekly earnings excluding bonuses rose by an annual 6.6% in the three months to the end of November – the slowest increase in nearly a year but roughly double the pace the BoE views as consistent with getting inflation back sustainably to 2%. – Reuters Epic says Apple fight is ‘lost’ after court declines to hear case WASHINGTON: The CEO of Fortnite-maker Epic Games said on Tuesday the company’s court battle to open up Apple’s iPhone to alternative app stores was lost after the US Supreme Court declined to hear the case. The court announced it would not hear appeals by either Apple or Epic in the long-running case, effectively putting an end to the legal saga. Epic in 2020 launched a case aiming to break Apple’s grip on the App Store, accusing the iPhone maker of operating a monopoly in its shop for digital services. Apple takes a cut of as much as 30% on all financial transactions in its app shop, prompting complaints about an unfair “tax” for companies. A federal court in San Francisco A Fortnite game installing on an Android operating system is seen in front of the Apple logo. – REUTERSPIC overwhelmingly rejected the lawsuit, offering only a concession that apps could indicate to users other ways of paying for services outside of Apple’s ecosystem. Both companies launched appeals, which worked themselves through the appellate process up to the Supreme Court. “The Supreme Court denied both sides’ appeals of the Epic v. Apple antitrust case,” Epic CEO Tim Sweeney said on X, formerly Twitter. “The court battle to open iOS to competing stores and payments is lost in the United States. “A sad outcome for all developers.” Sweeney said it was now up to governments and regulators to order that Apple make its iPhones allow new payment systems. He praised the European Union’s Digital Markets Act, which will do that in Europe starting from March 7. Epic last month won a similar court battle in the US against Google when a jury decided that the search engine giant wields illegal monopoly power through its Android app store. – AFP Maersk CEO sees Red Sea shipping disruption lasting ‘a few months’ DAVOS: Maersk CEO Vincent Clerc said yesterday the disruption to global shipping caused by the attacks on vessels in the Red Sea will probably last at least a few months. Maersk and other large shipping lines have instructed hundreds of commercial vessels to stay clear of the Red Sea, sending vessels on the longer route around Africa in response to attacks on shipping by Houthi fighters. “So for us this will mean longer transit times and probably disruptions of the supply chain for a few months but it could also be longer because it’s so unpredictable how this situation is actually developing,” said Clerc. Freight rates have more than doubled since early last month, according to maritime consultancy Drewry’s world container index, while insurance sources say war risk insurance premiums for shipments through the Red Sea are also rising. Banking executives have said they were worried the crisis might create inflationary pressures that could ultimately delay or reverse interest rate cuts. “This is extremely disruptive because you have close to 20% of global trade that transits through the Bab al-Mandab Strait. “It’s one of the most important arteries of global trade and global supply chains and it’s clogged up right now,” said Clerc. – Reuters
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 18 @thesundaily FOLLOW ON TWITTER Malaysian Paper VIENNA: The rich and famous are paying top dollar for a place at this week’s Davos summit but heiress Marlene Engelhorn is on the other side of the fence at the glitzy Swiss resort, demanding that they pay more in taxes. The 31-year-old is also pursuing an ambitious plan to pay people to come up with ideas for her to give away the bulk of her €25 million (RM129 million) wealth so she can escape what she calls a “dynastic rich swamp”. “I’ve inherited a fortune and therefore power, without having done anything for it. And the state doesn’t even want taxes on it,” said the Austrian-German activist and founder of the Taxmenow initiative. Engelhorn is joining several protests by a wealthy minority on the sidelines of the World Economic Forum calling for higher taxes on the rich. The scion of BASF chemical giant founder Friedrich Engelhorn is among an exclusive group of millionaires pushing for governments to tax them more to bridge the growing wealth gap. The estimated 2,150 billionaires around the world are US$3.3 trillion richer than they were in 2020, while nearly five billion people worldwide have grown poorer, the charity Oxfam said in a report on Monday, slamming “levels of obscene inequality”. Engelhorn – who inherited millions when her grandmother died in 2022 – announced this month that a citizens group of 50 Austrians will be set up and paid to devise ideas for the future of her fortune. To make the process more democratic, 10,000 randomly selected Austrians aged over 16 are being invited to apply to join the group by filling out a questionnaire. Fifty will then be selected. From March to June, the group will gather on several weekends in Salzburg to develop solutions “in the interests of society as a whole”, according to a statement. Engelhorn was not immediately available to comment on the project. If the group does not manage to suggest ideas with broad support, the inheritance will be returned to the heiress. Engelhorn, who studied German at university, said she will get a regular job after “more than 90%” of her wealth has been redistributed. “I’ll switch from the wealthiest 1% of society to the less wealthy 99%. I think that’s an improvement. I’m moving up into a democratic society, out of this dynastic rich swamp,” she told the German daily Tagesspiegel. Europe’s wealth inequality is particularly pronounced in Austria, economist Emanuel List of Vienna’s University of Economics and Business told AFP. Quoting European Central Bank estimates, he said “the top 5% own about 54% of Austria’s net wealth, while the entire bottom half of households only owns 4%, so basically nothing”. At least €15 billion are inherited or passed on in Austria every year, and whether one receives an inheritance or not “plays a very big role” in moving up the net worth ladder, he said. In Austria – where conservatives have held the Economy Ministry for decades – inheritance tax was scrapped in 2008, one of few EU countries to do so. Compared with campaigns such as US billionaire Warren Buffett’s pledge to donate 99% of his fortune to philanthropic causes, List said Engelhorn’s scientifically supported initiative is “innovative”. Amid a persistent cost-of-living-crisis, Austria’s opposition Social Democrats last year made a new call for an inheritance tax to be revived. However, the ruling conservative People’s Party firmly rejected the proposal. Austria’s far-right Freedom Party, which leads in polls ahead of a general election this year, called the Social Democrats’ tax plans “an attack on families, entrepreneurs and all top performers”. – AFP Austrian heiress pays to give away fortune oScion of BASF founder among millionaires pushing govts to tax them more US judge blocks JetBlue-Spirit airlines merger WASHINGTON: A US federal judge on Tuesday ruled against JetBlue’s US$3.8 billion (RM18 billion) takeover of low-cost carrier Spirit Airlines, saying that the deal would reduce competition. The decision comes after the US Justice Department last year sued to block the merger, noting the combination would hurt consumers and violate antitrust law. Spirit Airlines shares ended the day 47.1% down following the announcement while JetBlue closed 4.9% higher. Both companies pushed back against the decision in a joint statement, saying they disagreed with the ruling by District Court Judge William Young in Boston. “We are reviewing the court’s decision and are evaluating our next steps as part of the legal process,” they said. JetBlue and Spirit previously defended the tie-up, saying they would continue pushing to extend the “JetBlue Effect”, which has historically pressured bigger airlines to set more affordable fares. On Tuesday, the airlines added that their combination stands to benefit customers “by bringing low fares and great service” to more markets, and would boost their ability to compete with dominant US carriers. But in his decision, Young said: “JetBlue plans to convert Spirit’s planes to the JetBlue layout and charge JetBlue’s higher average fares to its customers. “The elimination of Spirit would harm costconscious travellers who rely on Spirit’s low fares.” Young noted that the airline industry has become more concentrated due to mergers. “The proposed acquisition, in this court’s attempt to predict the future in murky times, does violence to the core principle of antitrust law: to protect the United States’ markets – and its market participants – from anticompetitive harm,” the decision said. In a statement, Attorney-General Merrick Garland said: “Today’s ruling is a victory for tens of millions of travellers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.” – AFP Engelhorn posing with a placard at the entrance of the Congress Centre during the opening of the World Economic Forum meeting in Davos. – AFPPIC Ukraine reconstruction bank eyes near US$1b in committed capital DAVOS: A Ukraine reconstruction bank being set up by Kyiv with help from BlackRock and JPMorgan Chase has at least US$500 million (RM2.4 billion) in committed capital and could be ready to launch in five or six months with close to US$1 billion, an Ukrainian official said yesterday. “We have at least US$500 million in commitments, I think it will be close to US$1 billion commitments in catalytic capital,” said Rostyslav Shurma, deputy head of President Volodymyr Zelensky’s office. Catalytic capital refers to capital-like investments, debt and guarantees in which the investor accepts higher risk for greater social impact. Kyiv engaged BlackRock and JPMorgan last year to help set up a fund to raise public capital that could attract private investment for Ukraine’s post-war reconstruction. Of around 280 projects that had applied to the fund so far, BlackRock and JPMorgan saw between 25 and 30 as ones that could be seriously considered, Shurma said. Blackrock vice-chairman Philipp Hildebrand told Reuters earlier this week in Davos that the fund could be ready for action within the year. The asset manager was assisting Kyiv in discussions to seek sovereign money from development banks or principal donor countries to mitigate risk for private investments, he said. “We want to be ready to deploy with at least soft commitments from donor countries.” Risk would need to be reduced down to OECD levels for BlackRock assets – consisting of pension funds – to be mobilised, he said. “That money cannot be invested in very high risk enterprises.” The US Special Representative for Ukraine’s Economic Recovery Penny Pritzker said there were still many questions “about what’s possible today versus what’s definitely possible in the future when you’re postwar”. Pritzker highlighted efforts by JPMorgan and BlackRock, saying they had indicated early interest from “forward-leaning” investors willing to take higher risk investments and some individual investors. – Reuters Diddy and Diageo settle racism dispute LONDON: US rapper Sean “Diddy” Combs has agreed to withdraw allegations of racism against Diageo, the company said on Tuesday, six months after ending their business link-up. In a statement, Diageo said Combs has withdrawn his lawsuit as part of a settlement with the London-based spirits firm and both parties “have now agreed to resolve all disputes between them”. “Mr Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice.” Diageo also noted “Diageo and Mr Combs have no ongoing business relationship”. Diageo said last June it was ending its business relationship with Combs after he accused the company of neglecting their business agreement and of racism. Combs, also know by his stage names Puff Daddy, P.Diddy and Diddy, claimed in a New York court filing on June 1 that the firm failed to invest in his liquor brands because he is black. He alleged his liquor brands Ciroc Vodka and DeLeon Tequila brands were deprived of resources after they were typecast as “black brands” meant for “urban” consumers. The British multinational said the rapper had misrepresented a business dispute. Diageo said it had invested more than US$100 million in the brands to grow them after announcing in 2014 a 50:50 joint venture with Combs Wine & Spirits, after its acquisition of luxury tequila brand DeLeon. – AFP
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 19 STOCKS CLOSING (RM) +/- (RM) VOLUME (’00) RAPID 3.96 -1.69 18,472 YNHPROP 1.22 -0.51 14,757 APB 2.05 -0.44 12,125 HEIM 24.06 -0.36 1,068 ARTRONIQ 0.495 -0.3 173,072 SCIB 0.535 -0.3 2,024,975 MERSEC 0.455 -0.295 1,354,431 BLDPLNT 10.92 -0.28 5 HSI-CT6 0.05 -0.22 400 PETDAG 20.9 -0.22 3,907 ALLIANZ 19.9 -0.2 1,295 GTRONIC 1.49 -0.19 217,132 PARAGON 3 -0.19 1,790 HLCAP 4.04 -0.18 33,570 JSB 1.14 -0.16 267,379 CHINAETF-MYR 4.16 -0.16 802 KLUANG 4.69 -0.15 742 MESTRON 0.315 -0.15 760,027 PMETAL 4.85 -0.15 37,426 IMASPRO 1.23 -0.14 100,236 STOCKS CLOSING (RM) +/- (RM) VOLUME (’00) PBA 2.29 +0.430 179,758 HSTECH-HU 1.04 +0.410 101 UTDPLT 19.3 +0.340 6,885 HSI-HPJ 0.68 +0.260 24,839 F&N 29 +0.240 1,413 HSI-HP7 1.08 +0.230 16 HSI-HPR 0.61 +0.195 44,517 HSI-HSG 0.935 +0.190 550 HSI-HP1 0.3 +0.165 118,966 HSI-HP2 0.605 +0.165 8,100 HSI-HPT 0.565 +0.160 15,200 HSI-HPU 0.605 +0.150 3 HSI-HSW 0.52 +0.150 200 HSI-HSJ 0.56 +0.145 1,199 NVIDIA-C1 2.24 +0.140 24 YTLPOWR 3.78 +0.130 450,393 AIRPORT 7.72 +0.120 34,917 HSI-HPI 0.46 +0.115 50 HSI-HSC 0.34 +0.115 107,891 HSI-HSX 0.525 +0.115 15,208 STOCKS CLOSING (RM) +/-(RM) +/-(%) VOLUME LEFORM 0.175 -0.095 -35.19 4,691,131 SCIB 0.535 -0.3 -35.93 2,024,975 MERSEC 0.455 -0.295 -39.33 1,354,431 MINETEC 0.17 +0.015 +9.68 1,302,412 HSI-CTE 0.05 -0.065 -56.52 1,103,680 EKOVEST 0.56 - - 1,037,232 BPURI 0.075 -0.005 -6.25 830,055 MESTRON 0.315 -0.15 -32.26 760,027 WIDAD 0.49 -0.005 -1.01 661,749 FINTEC 0.01 - - 654,436 MUIIND 0.055 -0.005 -8.33 617,525 MINETEC-PA 0.08 +0.015 +23.08 586,154 TOPGLOV 0.905 -0.025 -2.69 547,045 MESTRON-WA 0.115 -0.045 -28.13 534,345 MRCB 0.52 +0.010 +1.96 517,886 KAB 0.405 -0.015 -3.57 507,047 TWL 0.035 -0.005 -12.50 487,713 SCABLE 0.215 -0.01 -4.44 476,843 HSI-CTQ 0.08 -0.05 -38.46 459,643 YTLPOWR 3.78 +0.130 +3.56 450,393 SUNBIZ presents a summary of the day’s trading activity on Bursa Malaysia and other markets in an easy to digest format. MARKET ROUND-UP: JANUARY 17 [ Sources: Bursa Malaysia, Bernama, shareinvestor.com and websites DISCLAIMER: The data and reports are provided as a service to investors. Sun Media Corporation Sdn Bhd shall not be liable or responsible for any consequences resulting from usage of the information. INDEX CHANGE FBMEMAS 11,102.80 -40.80 FBMKLCI 1,491.21 -2.66 CONSUMER PRODUCTS 557.81 -1.61 INDUSTRIAL PRODUCTS 173.36 -3.14 CONSTRUCTION 206.15 -1.53 FINANCIAL SERVICES 16,635.10 -35.40 ENERGY 849.93 -8.88 TELECOMMUNICATIONS 592.07 +3.21 HEALTH CARE 1,938.83 -13.90 TRANSPORTATION 946.93 -8.57 PROPERTY 888.36 -7.88 PLANTATION 7,172.57 +8.56 FBMSHA 11,191.00 -67.30 FBMACE 5,047.77 -150.00 TECHNOLOGY 63.19 -0.59 TURNOVER: 5.226 bil VALUE: RM3.165 bil Top 20 Actives Top 20 Gainers (By RM) Top 20 Losers (By RM) Bursa Indices STOCKS CLOSING (RM) +/- (%) VOLUME (’00) ALIBABA-C29 0.015 +200.00 2,118 HSI-HSF 0.085 +142.86 800 HSI-HP1 0.3 +122.22 118,966 BSLCORP-WB 0.01 +100.00 1,517 BTM-WB 0.01 +100.00 10,591 HSI-HPL 0.18 +100.00 6,188 HSI-HSO 0.05 +100.00 57,631 TENCENT-H1A 0.1 +81.82 5,761 HSI-HSD 0.2 +73.91 1,169 PUC-WA 0.025 +66.67 50 HSTECH-HU 1.04 +65.08 101 HSI-HSE 0.165 +65.00 5,288 HSI-HPJ 0.68 +61.90 24,839 ASTRO-C58 0.055 +57.14 16,565 HSI-HSN 0.1 +53.85 5,235 HSI-HSC 0.34 +51.11 107,891 SCBUILD 0.02 +53.85 178,878 ALIBABA-H1A 0.27 +50.00 90 ASTRO-C57 0.015 +50.00 12,238 FBMKLCI-HML 0.015 +50.00 10,100 Top 20 Gainers (By %) STOCKS CLOSING (RM) +/- (%) VOLUME (’00) HSI-CTH 0.015 -83.33 177 HSI-CT6 0.05 -81.48 400 HSI-CR3 0.005 -80.00 5,055 GEELY-C24 0.005 -66.67 1,100 PINGAN-C20 0.025 -66.67 1,450 ARTRONIQ-WA 0.085 -58.54 125,357 HSI-CR9 0.015 -57.14 53,298 HSI-CTT 0.065 -56.67 7,021 HSI-CTE 0.05 -56.52 1,103,680 GTRONIC-C29 0.05 -54.55 4,720 HSI-CTF 0.035 -53.33 40,200 GTRONIC-C25 0.11 -53.19 650 DXN-CJ 0.005 -50.00 6,100 HSI-CR2 0.005 -50.00 2,000 JDCOM-C19 0.01 -50.00 100 JOE-WB 0.005 -50.00 1,422 KGROUP 0.005 -50.00 194,353 ZENTECH-WB 0.005 -50.00 101 HSI-CTU 0.06 -47.83 784 HSI-CR8 0.045 -47.06 445,685 Top 20 Losers (By %) INDEX CLOSING DAILY DAILY CHANGE CHANGE (%) DJIA (US) 37,361.12 -231.86 -0.62 S&P 500 (US) 4,765.98 -17.85 -0.37 NASDAQ (US) 14,944.35 -28.41 -0.19 NYSE (US) 16,639.38 -160.16 -0.95 EURO STOXX 50 (EUR) 4,396.88 -49.63 -1.12 FTSE 100 (UK) 7,431.09 -127.25 -1.68 DAX (GER) 16,385.34 -186.34 -1.12 MSCI ASIA PACIFIC 164.97 -2.70 -1.61 NIKKEI 225 (JPN) 35,477.75 -141.43 -0.40 TOPIX (JPN) 2,496.38 -7.60 -0.30 HANG SENG INDEX (HK) 15,276.90 -589.02 -3.71 CSI 300 (CHN) 3,229.08 -71.80 -2.18 SH SE COM (CHN) 2,833.62 -60.37 -2.09 KOSPI INDEX (SK) 2,435.90 -61.69 -2.47 ASX 200 (AUS) 7,393.08 -21.71 -0.29 ALL ORDINARIES INDX (AUS) 7,622.52 -24.56 -0.32 SENSEX INDEX (IND) 71,544.50 -1584.27 -2.17 FBM KLCI 1,491.21 -2.66 -0.18 STRAITS TIMES INDEX (S’PORE) 3,142.22 -42.77 -1.34 WTI (US$/BBL.) 70.78 -1.62 -2.24 BRENT (US$/BBL.) 76.70 -1.59 -2.03 GOLD (COMEX) (US$/T OZ) 2,025.20 -5.00 -0.25 SILVER (COMEX) (US$/T OZ) 22.92 -0.17 -0.75 PLATINUM (US$/T OZ) 891.84 -8.16 -0.91 COPPER (COMEX) (US CENTS/LB.) 373.70 -2.95 -0.78 COPPER 3MO (LME) (US$/MT) 8,354.50 -26.50 -0.32 CORN (US CENTS/BU.) 442.50 -1.00 -0.23 WHEAT (US CENTS/BU.) 584.00 +2.00 +0.34 SOYBEAN OIL (CBOT) (US CENTS/LB.) 1,222.50 -4.75 -0.39 COCOA (ICE) (US$/MT) 4,418.00 -11.00 -0.25 RUBBER (S’PORE) (US CENTS/KG) 153.00 -1.20 -0.78 World Stocks/Commodities as at 5pm, Jan 17 Bursa ends lower amid jitters over US, China uncertainties KUALA LUMPUR: Bursa Malaysia ended lower yesterday in tandem with its regional peers, jittered by uncertainties over the US interest rates path as well as the health of China’s economy after the release of its 2023 gross domestic product (GDP), a dealer said. At 5pm, the FBM KLCI eased 2.66 points to 1,491.21 from Tuesday’s close of 1,493.87. The FBM KLCI opened 1.98 points easier at 1,491.89 and moved between 1,487.52 and 1,494.32 during the trading session. Meanwhile, decliners thumped gainers 832 to 265, while 385 counters were unchanged, 761 untraded and 18 others suspended. Turnover decreased to 5.23 billion units worth RM3.17 billion from 5.84 billion units worth RM3.59 billion on Tuesday. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the regional equities market was mostly in the red yesterday. “The anticipation for the US rate cut in March received a backlash as a Federal Reserve official seemed to be reluctant to enact monetary easing in the near term. “Meanwhile, China’s 2023 GDP growth came in at 5.2% compared to 3% posted in 2022, and within the government forecast of around 5%. However, the slump in its property market suggests that China’s authority needs to do more to stimulate its economy,” he told Bernama. Among the heavyweights, Maybank and Public Bank slid one sen each to RM9.05 and RM4.35, respectively, Tenaga Nasional eased two sen to RM10.44, Petronas Chemicals fell 12 sen to RM6.76, and CIMB gained two sen to RM6.03. Of the actives, Leform declined 9.5 sen to 17.5 sen, Sarawak Consolidated lost 30 sen to 53.5 sen and Mercury Securities slipped 29.5 sen to 45.5 sen. 1,491.21pts Jan 17, 2024 Participation 27.3 42.1 30.6 100.0 Retail Institutions Foreign Bought RM m 865.4 1352.3 948.2 3165.9 Sold RM m 864.7 1314.0 987.2 3165.9 Net RM m 0.7 38.3 -39.0 0.0 % Preliminary stats (excluding trade amendments). For final data, please refer to www.bursamalaysia.com Source: Bursa Malaysia A Participating Organisation of Bursa Malaysia Securities Berhad A Trading Participant of Bursa Malaysia Derivatives Berhad S E C U R I T I E S S D N. B H D. 197201001092 (12738-U) 17/1/2024
BIZ & FINANCE BIZ & FINANCE THURSDAY | JAN 18, 2024 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [ Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shalll not be liable or responsible for any consequences resulting from usage of the information. MAH SING has acquired several land banks in 2023 with a combined GDV of about to RM5.5 billion. Bulk of these land banks are set for launching in 2024, namely, M Terra, Puchong (high rise); M Tiara, JB (landed); M Zenya, Kepong (high rise); Glengowrie Estate, Semenyih (landed); M Azura, Setapak (high rise); and subsequence phases of existing projects. All in all, the company is planning to launch a total GDV worth RM2.5 billion in 2024. The company’s current projects are well received whereby the M Minori, JB (For Tower A - Int’l Lots); Sensory Residence, Southville City; M Adora, Wangsa Melawati and M Luna, Kepong are fully sold. Other projects such as M Senyum, Salak Tinggi; M Astra, Setapak; M Vertica, Cheras; M Panora, Rawang and Meridin East, JB have achieved average take up rates of more than 90%. Mah Sing is confident to hit its sales target of RM2.2 billion whereby RM1.8 billion were already achieved in 9M FY23. Based on management guidance, sales target for 2024 will be higher than total sales in 2023 which will be announced in February. It’s worth noting that Mah Sing has been consistently paying dividends, with a payout ratio of at least 40% from net profit over the past 15 years. Based on our estimates, Mah Sing is expected to pay dividend of 3.6 sen and 3.9 sen for FY24-25 translating into yields of 4.1% and 4.5% respectively. We are optimistic about the prospects of Mah Sing’s projects, anticipating positive impacts from upcoming key infrastructure developments, including the JB-Singapore Rapid Transit System, Johor-Singapore Special Economic Zones, and the Penang Transport Master Plan. BUY with a target price of RM1.11 based on SOP (Sum of Parts) valuations. WE expect Kerjaya Prospek to post a Q4’23 net profit of RM33-36 million – 23-34% YoY higher – backed by higher progress billings and improved contribution from the property segment. With a plethora of bright prospects underpinning its job replenishment trends, we believe there is more room for the stock to trade higher than its 13x FY24F P/E. Separately, KPG announced its fourth job in FY24 worth RM112 million for a proposed development in Setapak awarded by Kerjaya Property. This brings the total YTD FY24 job wins to RM378 million which makes up 25% of our RM1.5 billion FY24 job replenishment target. The latest job win also boosts the group’s total construction orderbook to RM4.7 billion (earnings visibility of four years). Putting aside the Seri Tanjung Pinang Phase 2 (STP2) development in Penang which may guarantee the flow of jobs to KPG – we view that there are other opportunities for the group from various angles. With it already securing RM1.4 billion worth of jobs in Batu Kawan under Aspen Group Holdings (ASPEN SP, NR) – KPG could stand a chance in bidding for industrial building jobs by ASPEN. Other pocket of opportunities may stem from Eastern & Oriental’s (EAST MK, BUY, TP: RM0.88) Elmina West development (estimated baseline GDV: RM1.5 billion). Recall that KPG has secured a RM25 million job in Q3’23 to undertake earthworks for the said development in Elmina West. In our view, KPG may be able to secure more jobs in Elmina West as the development is important for EAST to mitigate single-location risk. Still BUY, with new RM1.93 TP from RM1.75,14% upside and 5% yield. RIG utilisation to surge in Q4 FY23: Velesto projects a substantial increase in rig utilisation rates in the upcoming reporting quarter, targeting a 90% utilisation rate as multiple rigs entered full operations. The average daily charter rate (DCR) for the rigs is anticipated to remain at US$97,000/day (RM454,000) in Q4 FY23, consistent with the achieved rates in Q3 FY23. More DCR renewals in FY24: In addition to Naga 8, which has secured a DCR of US$137,000/day, Naga 2, 4, and 5 will undergo charter renewals at various points in FY24. Velesto indicates that the DCR for new contracts will fall within the range of US$120,000- 130,000/day. Hence, this is expected to push the average DCR for the group close to US$120,000/day, potentially surpassing our initial expectation of US$107,000/day for FY24. Four rigs to come under scheduled maintenance: Four rigs (Naga 2, Naga 3, Naga 5, and Naga 6) are scheduled for major maintenance in FY24. Velesto anticipates that average rig utilisation will fall within the range of 80-85%, similar to FY23. The estimated major maintenance cost per rig is US$10 million, and the company plans to depreciate these costs over the next five years, following its standard practice. We like Velesto due to: (i) the positive outlook of the local jack-up rig market buoyed by strong demand amidst firm crude oil prices, (ii) its strengthened bargaining power as a result, paving the way for better DCR on contract renewals, and (iii) potential upside surprises to its margins on early signs of easing labour cost inflation. We raise our FY23-24 earnings forecasts by 20% and 46%, lift our TP by 53% to RM0.26 (from RM0.17) and upgrade our call to MARKET PERFORM from UNDERPERFORM. FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.7705 4.6375 4.6275 1 Australian Dollar 3.1630 3.0380 3.0220 1 Brunei Dollar 3.5540 3.4530 3.4450 1 Canadian Dollar 3.5340 3.4410 3.4290 1 Euro 5.1990 5.0330 5.0130 1 New Zealand Dollar 2.9430 2.8350 2.8190 1 Singapore Dollar 3.5540 3.4530 3.4450 1 Sterling Pound 6.0400 5.8540 5.8340 1 Swiss Franc 5.5300 5.4030 5.3880 100 UAE Dirham 131.5000 124.7300 124.5300 100 Bangladesh Taka 4.4320 4.1440 3.9440 100 Chinese Renminbi 66.4000 63.9000 N/A 100 Danish Krone 71.4600 65.7900 65.5900 100 Hongkong Dollar 61.6500 58.6100 58.4100 100 Indian Rupee 5.8400 5.4900 5.2900 100 Indonesian Rupiah 0.0317 0.0287 0.0237 100 Japanese Yen 3.2440 3.1430 3.1330 100 New Taiwan Dollar 16.2000 N/A N/A 100 Norwegian Krone 46.8200 43.0800 42.8800 100 Pakistan Rupee 1.7300 1.6200 1.4200 100 Philippine Peso 8.6600 8.1700 7.9700 100 Qatar Riyal 132.4200 125.7100 125.5100 100 Saudi Riyal 128.7300 122.2000 122.0000 100 South Africa Rand 26.1000 23.5700 23.3700 100 Sri Lanka Rupee 1.5300 1.4000 1.2000 100 Swedish Krona 47.1800 42.9700 42.7700 100 Thai Baht 14.0600 12.4800 12.0800 Exchange Rates Source: Malayan Banking Bhd/Bernama Ringgit falls against US dollar in line with regional currencies KUALA LUMPUR: The ringgit ended lower against the US dollar for the third consecutive day in line with other regional currencies after US Federal Reserve (Fed) governor Christopher Waller said the Fed is in no hurry to cut rates. Waller acknowledged that the US inflation rate is “not too far off from the 2% target” but called for caution, and that the timing and actual number of cuts would depend on data. At 6pm, the ringgit eased to 4.7145/7200 versus the greenback from Tuesday’s close of 4.6925/6965. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Waller’s views on Tuesday were noted globally. “Meanwhile, China’s full year gross domestic product which came in at 5.2% (2022: 3%) was within the government’s target of around 5%. “However, sceptics remain as to how a soft landing can be achieved. In a nutshell, market participants seem wary about China’s economic prospect this year and next,” he told Bernama. On that note, Mohd Afzanizam said seeking refuge against market volatility would be the most sensible thing to do and this has resulted in a higher demand for the US dollar. He expects the ringgit to remain weak in the near term. Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit experienced a significant decline, mirroring the trend observed in other Asian currencies. He said the setback in global risk appetite followed after Waller’s comments on Tuesday, indicating a potential delay and a slower pace for interest rate cuts compared with market expectations. MAHB signs deal for KLIA aerotrain replacement KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has signed an agreement with Alstom Transport Systems (Malaysia) Sdn Bhd and a joint venture (JV) consisting of IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd (IJMCPestech JV) to complete the Kuala Lumpur International Airport (KLIA) aerotrain replacement project by the first quarter of 2025 (Q1’25). In a statement, the airport operator said that under this new agreement, Alstom, the new aerotrain’s original equipment manufacturer, would serve as the project coordination lead and be responsible for the coordination works to recommence the project and deliver three new trains and two lines by Q1’25. “In making this decision, MAHB’s board considered two key focus areas, namely keeping to the agreed fit-for-purpose technology and ensuring the project can meet the original timeline for the operations of both lines,“ it said. MAHB said Alstom’s involvement would provide a layer of assurance to the project, given the company’s successful track record in similar ventures. Alstom has selected to work with IJM Construction and Pestech Technology for work scopes involving civil engineering and train power supply components, among others. MAHB said that to ensure project continuity and adherence to the original timeline, this new contract with Alstom, excluding operation and maintenance, is expected to incur a cost increase capped at 15%, bringing the project cost to RM456.1 million. “This increase is attributed to interest holding costs, foreign exchange considerations, remobilisation expenses, as well as project coordination fees to Alstom,“ it added. – Bernama Velesto Energy Bhd MARKET PERFORM. TARGET PRICE: RM0.26 Kerjaya Prospek Group Bhd BUY. TARGET PRICE: RM1.93 Mah Sing Group Bhd BUY. TARGET PRICE: RM1.11 Source: Bloomberg, RHB Research Jan 17, 2024: RM1.69 Source: Kenanga Research Jan 17, 2024: RM0.875 Jan 17, 2024: RM0.265 Source: Company, Rakuten Trade Research
LYFE LYFE THURSDAY | JAN 18, 2024 22 READ OUR HERE /thesun Malaysian Paper Model and cultural stalwart THE prestigious Miss Friendship International 2023 pageant, held in Chengdu, China last year, not only showcased glitz and glamour but also revealed the inherent talent and natural beauty of its contestants. In this gathering of beautiful individuals, a standout figure emerged — local talent Nicole Fe Lynne Tan. Her involvement went beyond the typical role of an individual competitor, evolving into the embodiment of Malaysia’s vibrant fusion of tourism, arts, culture and captivating destinations. With an impressive eight-year journey, Tan has risen to become a distinguished tourism and cultural ambassador, making a lasting impact on the country’s tourism efforts. Eager to explore her inspiring journey, theSun conducted an exclusive interview with this bubbly chatterbox. More athlete than model Tan revealed that she never anticipated entering the fashion world at first, saying, “My life has always revolved around sports and I see myself more as an athlete. I represented my state in sports during my youth and practised martial arts, which made me think I am more of a sportswoman.” She recalls developing natural leadership skills while serving as captain of her high school sports team, eventually leading her team to victory. Unexpectedly, her foray into the modelling industry was prompted by the support and encouragement of her peers. “Their support sparked my interest and I decided to give modelling a shot with an open mind. Once I started, I gained valuable insights and knowledge.” Encouraged by famed modelling personality Amber Chia, who specifically remarked that Tan’s height made her suitable for modelling, she decided to give it a try. Promoting cross-cultural understanding Tan’s experience in China went beyond winning the Miss Friendship International title. Within a month of that triumph, she appeared at the Cultural Fashion Show during the 2023 China Changting National Historical and Cultural City Protection Day and the First Tingzhou International Cultural Exchange Festival. Reflecting on her experience, she noted, “It turned out to be quite positive, despite a few hurdles. I had the chance to interact with other stunning contestants from around the world, gain new knowledge, explore various places and overall, it was a great experience.” Other than being a tourism ambassador, Tan expresses versatility in different talents not just as a model but as a TV host, emcee, TV actress and in the performing arts. Promoting kebaya on the global stage For the past eight years, Tan has dedicated herself to promoting the kebaya, Malaysian culture and local destinations. Starting her role as a youth advocate for tourism, arts, culture and promotional activities at 21, she served as an official spokesperson, educating people of all ages about Malaysian culture with a specific focus on the kebaya. Tan is a beacon for Malaysia’s cultural diplomacy. – PIC COURTESY OF NICOLE TAN oPromoting heritage and inspiring youths █ BY HAZIQUE ZAIRILL Tan representing Malaysia for the Miss Friendship International 2023 held in Chengdu last year. Tan has spent the last eight years promoting the kebaya, Malaysian culture and local destinations. A notable achievement includes Tan organising the Malaysia Book of Records 2019 event, which featured the highest number of beauty queens wearing kebaya. Surprisingly, in 2023, the kebaya received a nomination for Unesco’s Intangible Cultural Heritage List. Underscoring the importance of leaving a lasting legacy, Tanemphasises, “To be a successful representative, one must prioritise preserving their roots. As Malaysians, we possess a rich cultural heritage that we should wholeheartedly embrace.” As a key industry figure, Tan plays a significant role as a strategic partner with the Miss Malaysia Kebaya Organisation in collaboration with the Ministry of Tourism, Arts and Culture. Additionally, she serves as the secretary for the Malaysia Fashion, Modelling and Pageant Association, showcasing leadership skills and contributing to the association’s growth. Moreover, during her representation at the Miss Friendship International 2023 Grand Finals in Chengdu, Tan adorned a modern lace kebaya with songket by Yan’s Creation for the national costume round. Grace under pressure Discussing challenges in preparing for the Cultural Fashion Show in China, Tan exhibited resilience, emphasising her can-do attitude and a positive mindset despite the ultra-tight deadline. She stated, “Before heading to China for the pageant, I had to prepare at the last minute —just less than three weeks before the event. Typically, these global international competitions demand serious 12-month preparation. “It was back in 2023 and I vividly recall getting the last-minute notice of being selected to represent Malaysia. Thanks to my sponsors and advisors, though, I did manage to get ready and suit up for the event. It was a whirlwind of chaos and constant pressure.” At the event itself, she also recalled applying makeup on her own when the venue experienced a power outage. Even without the assistance of the make-up artist, Tan managed to look fabulous. Goals and dreams Aside from being a glamorous model and fashion ambassador for Malaysian designers, Tan is a keen equestrian enthusiast, having learned to ride horses at the tender age of six years old. “My passion for horses, animals and sports was ingrained in me from the day I was born,” she affirmed. “Being an equestrian is not just a hobby — it’s a connection to nature, a therapeutic escape, and a celebration of the bond between human and animal.” Tan’s affection for equestrian sports transcends leisure — she envisions a future where she contributes to promoting this sport in Malaysia. “I believe that equestrian sports have the potential to grow and thrive in our country. It’s not just about the competition but also about instilling a sense of discipline, responsibility and respect for nature,” she said. Expressing her aspirations, she hopes for an opportunity to represent Malaysia in equestrian events, aiming to bring glory to the country. Looking ahead As the interview unfolded, it became apparent that Nico transcends the conventional beauty queen — she is a woman driven by purpose, vision and a heart brimming with aspirations. Her clear goal is to inspire the youth and elevate Malaysia’s reputation globally, expressing her commitment to continually contribute to making the nation proud. Offering advice, Tan emphasises the necessity of maintaining a constant love for a country’s culture, encouraging small gestures like sharing pictures in traditional attire on social media. Tan is always game to experience new adventures that align with her goals and aspirations. After all, it is this attitude that has led to so many different opportunities for the 28- year-old, many of which she did not envisage being connected to or involved in. “We all have to start somewhere and of course, there is no need to fear trying something new. Just give it a try,” she said.