CEOMorningBrief TUESDAY, JANUARY 30, 2024 ISSUE 709/2024 theedgemalaysia.com RED SEA SHIPPING CRISIS SENDS TREMORS THROUGH ASIA FUEL MARKETS p19 HOME: YTL Power’s Singapore unit commissioned to build hydrogen-ready power plant worth S$800 mil p8 Royal-linked Maharani Energy Gateway secures RM9.5 bil renewable energy investment from China firm p10 YNH Property now plans to sell 163 Retail Park to Sunway REIT for RM215 mil cash p12 Sarawak premier urges rivals to stop undercutting Anwar p18 WORLD: China Evergrande ordered to liquidate in landmark moment for crisis-hit sector p20 Report on Page 2. Outcome of Najib’s pardon application may be known today ZAHID IZZANI/THEEDGE Charged with failing to declare assets to MACC, Daim slams Anwar as ‘wolf in sheep’s clothing’ The wheelchair-bound 85-year-old accuses the prime minister of betraying his promises of reform, and that his “regime” is abusing its powers. Reports on Page 3-5.
tuesday january 30, 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: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] home KUALA LUMPUR (Jan 29): As the guardian of the country’s democracy, practised since 1957, the function of the Yang di-Pertuan Agong Institution as the pillar of the nation’s peace and the pulse of unity in the country needs to be maintained and continue to be reinforced, said Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. His Majesty emphasised the significance of fortifying the institution to safeguard the people and the country’s administration, thereby fulfilling the responsibilities and utilising the powers as enshrined in the Federal Constitution. According to Al-Sultan Abdullah, the institution serves not only as a symbol of unity in the diverse society of the country but also as a platform of hope for the people in addressing the challenges confronting the nation. “I believe this institution holds great Al-Sultan Abdullah: Yang di-Pertuan Agong institution needs to be reinforced to continue safeguarding people by Harlina Samson Bernama KUALA LUMPUR (Jan 30): The Pardons Board’s decision on jailed former prime minister Datuk Seri Najib Razak’s application may be made known today. The Edge understands that the board has considered the matter and made a decision. Utusan Malaysia earlier reported that the Pardons Board had scheduled a meeting on Monday, with one of the meeting agendas being the jail term faced by Najib. The Edge learned that the board proceeded with the meeting on Monday. The meeting was to be the last official meeting for the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah before his reign ends today, according to the report, after which he returns as the Sultan of Pahang. The meeting had been postponed several times previously, Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa was quoted by Utusan as saying. “As of today (Sunday), I was informed that the meeting will take place [on Monday] but not sure if it is postponed again, considering it has been several times where the meeting was postponed. “What I can confirm is that the Pardons Board meeting will be chaired by the Yang di-Pertuan Agong,” Zaliha was quoted as saying when contacted by Utusan on Sunday. Talk of Najib’s jail time has emerged in recent weeks. On Jan 10, Communications Minister Fahmi Fadzil told reporters that the Cabinet meeting had not touched on matters involving the Pardons Board, including Najib’s case. This as the Cabinet “cannot supersede the process”, Fahmi was quoted as saying. Najib is currently facing a 12-year jail term after he was found guilty of one count of abuse of power with regard to Retirement Fund Inc’s (KWAP) RM4 billion loan to SRC International Sdn Bhd, and three counts each of criminal breach of trust and abuse of power with regard to RM42 million of SRC funds. SRC is a former subsidiary of 1Malaysia Development Bhd (1MDB). In August 2022, the Federal Court upheld the conviction. In Malaysia, each state has its own Pardons Board chaired by the respective sultan or Yang di-Pertua (or governor). The Pardons Board consists of five members, namely the attorney general, the chief minister or menteri besar and three other members appointed by the Yang di-Pertuan Agong or the state ruler, Utusan reported. In the case of the Federal Territories, the board members include the prime minister, as the region falls under the jurisdiction of the Prime Minister’s Department. Outcome of Najib’s pardon application may be known today by Adam Aziz theedgemalaysia.com importance for our nation, which is characterised by its multi-racial, multi-religious and diverse ethnic makeup. It is crucial to maintain and uphold this institution for the benefit of the country and the well-being of future generations. “If possible, efforts should be directed toward further strengthening it, not by augmenting individual powers. This emphasis is not about any specific individual, including myself, but rather about the institution itself. The Yang di-Pertuan Agong stated that the role of the institution is not about idolisation but rather about strengthening it, ensuring the system’s continuous protection of the people and the administration. “The Agong serves a five-year term, and upon completion, returns to the state,” said His Majesty in an interview with editors and senior journalists of mainstream media, in conjunction with the end of the reign of the 16th Yang di-Pertuan Agong at Istana Negara recently. Read the full story
TUESDAY JANUARY 30, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): Former finance minister Tun Daim Zainuddin was charged on Monday with not declaring his assets to the Malaysian Anti-Corruption Commission (MACC) in the Sessions Court here. He pleaded not guilty before judge Azura Alwi to one charge under Section 36(2) of the MACC Act 2009, concerning an offence pertaining to disclosure of assets. He was charged with not declaring one Amanah Saham bank account, seven vehicles including a Rolls-Royce, an Austin Morris Austin and a Jaguar XJS HE, 38 companies, and 25 properties, some of which are linked to the companies he owns. Among the companies mentioned were Ibu Kota Developments Sdn Bhd, Maya Seni Holdings Sdn Bhd, Menara Ampang Sdn Bhd, Dream Cruiser Sdn Bhd, Landbelt Corporation Sdn Bhd, Avillion Bhd, Avillion Hotel Group, Admiral Cove Development Sdn Bhd and Avillion Hotels International Sdn Bhd, to name a few. Some of the 25 properties are located in Ritchie Condo, Persiaran Ritchie and Desa Kuda Lari in Kuala Lumpur, Avillion Port Dickson, Avillion Admiral Cove and Admiral Marina and Leisure Club in Negeri Sembilan, to name a few. Daim, who was seated on a wheelchair, could not stand up to have the charge read to him. He was also allowed to not enter the accused dock in court, and instead just sit in his wheelchair, next to the accused dock. When the charge was read out to him, Daim in a frail voice said “faham” (understood). The registrar had listed out all the assets to him, which took a few minutes. When asked by the registrar whether he understands the charge, Daim said in a frail voice “minta bicara”, which means that he wants to go for trial and plead not guilty. Earlier, Daim, 85, arrived in court in his wheelchair with his wife Toh Puan Na’imah Abdul Khalid and his children. Na’imah was also charged last week for a similar offence. Daim was represented by lawyers M Puravalen, Nizamuddin Abdul Hamid, M Moganasundari, N Rajesvaran and Sachpreetraj Singh. The MACC’s prosecution division head Daim was represented by lawyer M Puravalen. The MACC’s prosecution division head Datuk Wan Shaharuddin Wan Ladin (centre) led the prosecution team, along with deputy public prosecutors Ahmad Feisal Mohd Azmi (right) and Mohamad Fadhly Mohd Zamry. CONTINUES ON PAGE 4 Datuk Wan Shaharuddin Wan Ladin led the prosecution team, along with deputy public prosecutors Ahmad Feisal Mohd Azmi and Mohamad Fadhly Mohd Zamry. After Daim pleaded not guilty, Shaharuddin asked the judge that no comments from the parties be made about the case now that it is before the court to prevent subjudice. “We hope that no comments are made about the court proceedings. We understand the freedom of Rakyat Malaysia, but we want to prevent subjudice comments until the full disposal of the case,” he said. However, Puravalen said that the gag order was not necessary. The judge concurred, but cautioned: “I understand and I feel all parties are mature and learned enough to know not to comment on the case. Both sides are cautioned not to make any comment on the case to prevent subjudice.” Lawyer says Daim is practically home-bound, impossible for him to report to MACC every month While deliberating the bail conditions, Shaharuddin asked for an amount of RM250,000 to RM500,000, and to have Daim’s passport surrendered to the court, and for him to report to the MACC once a month. However, Puravalen said that Daim had a whole host of medical conditions, and is incapable of reporting to the MACC. “You have seen for yourself the medical condition of my client. He’s a kidney transplant patient, he’s on immunosuppressant medication, he has had minor PHOTOS BY LOW YEN YEING/THE EDGE BY TIMOTHY ACHARIAM & TARANI PALANI theedgemalaysia.com Daim pleads not guilty for not declaring cars, land and companies to MACC Lawyer Nizamuddin Abdul Hamid.
TUESDAY JANUARY 30, 2024 4 THEEDGE CEO MORNING BRIEF HOME FROM PAGE 3 CONTINUES ON PAGE 5
TUESDAY JANUARY 30, 2024 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): Former finance minister Tun Daim Zainuddin has called Prime Minister Datuk Seri Anwar Ibrahim a “wolf in sheep’s clothing who cries reforms but does the polar opposite”. Lamenting the state of reform in the country, Daim said that like many Malaysians, he wanted a new dawn for the country and was a supporter of Pakatan Harapan and Anwar in 2018. “Then, the nation was under the shadow of the 1Malaysia Development Bhd scandal. But now, we are under the shadow of an administration that is abusing its powers, while betraying all the promises of reform,” he said. The former minister then went to take a dig at several recent events, questioning if they were aligned with a country heading towards reform. “For the sake of becoming the prime minister, Anwar made a person facing corruption charges as the deputy prime minister. Soon after, like magic, the DPM’s 47 corruption charges were dropped,” Daim said, referring to Datuk Seri Dr Ahmad Zahid Hamidi’s graft case. “Honesty, integrity and good governance have gone out the window. Independent institutions like the Malaysian Anti-Corruption Commission (MACC), Attorney General’s Chambers and Inland Revenue Board have been made pliable tools to pursue political opponents,” Daim added. He said that as PKR chief Anwar “busies” himself “pursuing vendettas of the past”, the economy continues to take a hit, and the plight of ordinary Malaysians is ignored. Daim also urged the people to not hesitate to stand up to Anwar’s “regime”, saying that a government is accountable to its people. Daim said this in a statement on Monday after the former Council of Eminent Persons chief was charged with one count of not declaring his assets, which included Amanah Saham accounts, seven vehicles, Daim: Anwar ‘wolf in sheep’s clothing’, cries reform but does the opposite BY TARANI PALANI & TIMOTHY ACHARIAM theedgemalaysia.com 38 companies, and 25 properties, some of which are linked to the companies he owns. Calling the charge levelled against him as politically motivated, Daim reiterated that he is not guilty and looks forward to his day in court. “In my twilight years, I may no longer have the physical strength, but my convictions have not wavered. I am not too bothered about my fate now. Let Anwar throw everything at me,” said the elderly politician. He ended his prepared remarks with a message to his “old friend” Anwar, saying “remember what Allah the Almighty has said in Surah al-Nur, that those who spread foul slander among the believers will have a painful punishment in this world and the hereafter. For Allah knows, and you do not”. The charge against Daim was framed under Section 36(2) of the MACC Act, which carries a punishment of a maximum fiveyear imprisonment and a fine not exceeding RM100,000. The court granted a bail of RM280,000 with no additional conditions to the 85 yearold. Daim, who was hospitalised recently, appeared in court on Monday wheelchair-bound, and appeared rather frail. While the charge was read out to him in open court, Daim’s plea was hardly audible. Earlier, while the prosecution and the defence were arguing over the bail amount and conditions, Daim’s lead counsel M Puravalen revealed that his client is a kidney transplant patient who had suffered several minor strokes in recent years and who was also slightly hearing impaired due to medication. The former minister also had to remove one eye due to a fungal infection. During the press conference after posting bail on Monday, Daim was set to read the press statement. However, his voice was barely audible, and he stopped reading the prepared statement, and was wheeled away by his wife to his vehicle. strokes and a fungal infection in his eye, and presently, he has only one eye. He has difficulty hearing because of his medication, he’s not mobile, and he’s practically home-bound. “Regarding surrendering his passport and reporting to the MACC, it is impossible for him to report to the MACC, as this won’t be helpful for his health status,” Puravalen said. Azura then clarified with Puravalen if he was asking that Daim not report to the MACC, and that his passport not be surrendered, to which he replied: “We suggest you don’t take his passport, Yang Arif. He’s not going anywhere. He can’t. Even coming here today (Monday) was diffiFROM PAGE 4 cult for him. His medical status has to be reviewed if he takes a turn for the worst.” The judge then set a RM280,000 bail with one surety, but did not impose any other bail conditions, such as surrendering the passport and reporting to the MACC once a month. “There’s no other additional conditions as we considered his condition,” she said. Daim gave his statement to the anti-corruption agency last Friday, after missing an initial appointment in mid-January as he was hospitalised. The nature of his illness has not been made public. In a brief statement released on Saturday, Daim said that he had been informed of the charge, and “looked forward” to his day in court. Daim was appointed as the finance minister in 1984 until he resigned in 1991. He was later appointed as a minister with special functions in 1998, and later reappointed as minister of finance I in 1999. He has not held any public office since his resignation more than two decades ago in May 2001. When Pakatan Harapan (PH) won the general election in 2018, then prime minister Tun Dr Mahathir Mohamad set up the Council of Eminent Persons (CEP) to look into economic and financial affairs of the country, and appointed Daim as its chairman. The CEP was disbanded when PH lost power in March 2020 after the Sheraton Move. During the press conference after posting bail on Monday, former finance minister Tun Daim Zainuddin (wheelchair-bound) was set to read his press statement. However, his voice was barely audible, and he stopped reading the prepared statement, and was wheeled away by his wife Toh Puan Na’imah Abdul Khalid to his vehicle. SAM FONG/THE EDGE
tuesday january 30, 2024 6 The E dge C E O m o rning brief
TUESDAY JANUARY 30, 2024 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): The charge against former finance minister Tun Daim Zainuddin for failing to declare his assets has cast a spotlight on Avillion Bhd. Avillion and 23 of its subsidiaries were listed among the 71 assets in the Malaysian Anti-Corruption Commission’s (MACC) charge sheet, in its case against Daim. Daim pleaded not guilty before judge Azura Alwi to one charge under Section 36(2) of the MACC Act 2009, concerning an offence pertaining to disclosure of assets. He was charged with not declaring one Amanah Saham bank account, seven vehicles including a Rolls-Royce, an Austin Morris Austin and a Jaguar XJS HE, 38 companies and 25 properties, some of which are linked to the companies he owns. Among the companies mentioned were Ibu Kota Developments Sdn Bhd, Maya Seni Holdings Sdn Bhd, Menara Ampang Sdn Bhd, Dream Cruiser Sdn Bhd, Landbelt Corporation Sdn Bhd, Avillion Bhd, Avillion Hotel Group, Admiral Cove Development Sdn Bhd and Avillion Hotels International Sdn Bhd, to name a few. The loss-making group’s largest shareholder is Daim’s son Datuk Md Wira Dani Abdul Daim, with a 21.82% stake via Ibu Kota Developments Sdn Bhd and Daza Holdings Sdn Bhd. Wira Dani has been the group’s substantial shareholder since April 2016 — when the group was known as Reliance Pacific Berhad. Dani and his mother Toh Puan Mahani Idris emerged as substantial shareholders in the group at the same time, but Mahani exited in 2020 after she transferred all her 247.3 million shares or 26.3% equity to a Maybank Trustees Bhd account. Avillion is involved in property, hotel and travel businesses. It is well known in the tourism sector, as it owns the Avillion Hotel Group, which operates a chain of luxury hotels and resorts in Port Dickson, Melaka, Kuang, Janda Baik and Kuala Lumpur, as well as Bali. The company has been suffering losses between FY2016 and FY2023. In its FY2023 ended March 31, the group recorded RM4.76 million in net loss. For the six-month period ended Sept 30, 2023, Avillion’s net loss widened to RM3 million, from a net loss of RM2.37 million in the same period a year before. The bigger net loss was due to increases in operating expenses, which rose 35.82% to RM32.3 million from RM23.79 million a year before, higher finance costs of RM3.17 million compared with RM2.94 million a year prior, and higher depreciation and amortisation of RM5.1 million. As at end September 2023, the group’s total borrowings stood at RM87.31 million, a slight increase from RM86.87 million in the corresponding period in 2022. Of its total borrowings of RM87.31 million in the six months to Sept 30, 2023, RM34.04 million represented short term borrowings. It should be noted that its external auditor Messrs Baker Tilly Monteiro Heng PLT raised concerns about the group’s ability to continue operating as a going concern in its audited financial statements for the financial year ended March 31, 2023 (FY2023). Its bourse filing in end-July 2023 reported its auditor as saying Avillion incurred net losses of RM5.4 million at the group level and RM4.84 million at the company level in FY2023, although the group’s hospitality, property and travel divisions have recovered after the Covid-19 pandemic. “[This] thereby indicates the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern,” it said. BY JUSTIN LIM theedgemalaysia.com Loss-making Avillion under spotlight as Daim charged in court According to Avillion’s 2023 annual report, the group has properties with a combined value of RM285.92 million in terms of net book value (NBV). Among notable properties include Avillion Hotel Port Dickson, which has an NBV of RM137.77 million. Avillion has seven plots of lands in Port Dickson with an NBV of RM100.07 million. Six of these lands are listed for development, while the remaining one is where the Admiral Cove Premier Integrated Marina Resort sits. On its prospects, Avillion said the overall growth outlook for the group is encouraging as the near term outlook of the leisure and hospitality industry remains positive in the longer term, its bourse filing on Nov 2023 showed. “We will continue to source for new income streams to ensure long term sustainability of the group. We are confident there will be greater visibility in the near future barring any unforeseen circumstances,” it added. Avillion’s share price has been lacklustre. Its stock performance has been declining since hitting its peak of 78.5 sen in 2011, and sagged to its lowest point of three sen on March 19, 2020 — a day after the movement control order was enforced due to the Covid-19 pandemic outbreak. On Monday, Avillion shares closed up 0.5 sen or 9.09% to six sen, giving the group a market capitalisation of RM68 million. Tun Daim Zainuddin SAM FONG/THE EDGE
TUESDAY JANUARY 30, 2024 8 THEEDGE CEO MORNING BRIEF HOME LCTitan FY2023 net loss widens y-o-y as 4Q loss narrows to RM186 mil YTL Power’s Singapore unit commissioned to build hydrogenready power plant worth S$800 mil BY EMIR ZAINUL theedgemalaysia.com BY ADAM AZIZ theedgemalaysia.com KUALA LUMPUR (Jan 29): YTL PowerSeraya Pte Ltd, a wholly owned subsidiary of YTL Power International Bhd, won the right to build, own and operate a hydrogen-ready combined cycle gas turbine (CCGT) unit with a capacity of at least 600 Megawatts (MW) in Singapore. This follows a request for proposal (RFP) called by the Energy Market Authority (EMA) of Singapore in July 2023. According to the EMA, YTL PowerSeraya’s proposal was selected out of four submissions for the RFP. The power plant is estimated to cost S$800 million (approximately RM2.82 billion) and is targeted to be completed by Dec 31, 2027. “We are honoured to be awarded the first RFP and be entrusted with the responsibility of constructing the hydrogen-ready CCGT at Pulau Seraya Power Station (PSPS),” said John Ng, YTL PowerSeraya chief executive officer (CEO) in a statement announcing the award on Monday. According to YTL Power, the CCGT will be at least 30% volume hydrogen-ready, with the ability to be retrofitted to become operationally 100% hydrogen-ready in the future, aiding in Singapore’s long-term net zero emissions aspirations by 2050. “This project is fully in keeping with our commitment to invest for the long term in low-carbon technologies, infrastructure and advanced energy solutions, enabling us to continue to provide the best outcomes for the benefit of our customers and the communities where we operate in. “We are gratified by the faith and confidence placed in YTL PowerSeraya to build for the future and deliver this pioneering project in Singapore,” said YTL Power International managing director Datuk Seri Yeoh Seok Hong in the statement. YTL PowerSeraya’s power generation business has a licensed generating capacity of 3,100MW, known as the Jurong Power Station. In June 2022, YTL PowerSeraya completed the acquisition of Tuaspring Pte Ltd’s 396MW CCGT power plant, with a cash consideration of S$270 million (approximately RM952.94 million). Shares of YTL Power on Bursa Malaysia were down two sen or 0.50% to close at RM3.95 on Monday, valuing the group at RM32.22 billion. Year to date, the counter has risen by 53.7%, from RM2.57 at the start of the year. KUALA LUMPUR (Jan 29): Lotte Chemical Titan Holding Bhd (LCTitan) booked its seventh consecutive quarter in the red in the quarter ended Dec 31, 2023 (4QFY2023), which saw losses narrow year-on-year (y-o-y) amid lower feedstock costs and forex gains. Quarterly net loss came in at RM186.48 million or 8.19 sen per share, from RM333.64 million or 14.65 sen per share in 4QFY2022. The lower losses came despite a 10.26% decline in quarterly revenue to RM1.86 billion, from RM2.07 billion, which LCTitan attributed to lower sales volume amid slower economic activities in the region. Nonetheless, LCTitan’s FY2023 results saw its full-year net loss widen y-o-y to RM780.29 million, from RM731.06 million, with a 23.68% drop in full-year revenue to RM7.65 billion, from RM10.19 billion. “The weaker performance was mainly due to decline in margin spreads; share of loss from Lotte Chemical USA Corp; and partially offset by reversal of inventory write-down to its net realizable value,” LCTitan said in a statement. LCTitan president and CEO Park Hyun Chul noted the weaker performance in 2023, citing lower economic growth in China and Europe, as well as the impact of the conflict in the Middle East on oil price volatility, which he said are highly correlated with its key feedstock naphtha. “Against the backdrop of the market uncertainties, the group has implemented the business optimisation plan by balancing our production outputs and economic efficiencies, leading to a lower overall plant utilisation of 67% in FY2023 compared to 77% in the corresponding year,” he said. On the construction of its new ethylene plant in Indonesia, Park said progress of the “key strategic expansion” is on schedule. The project, slated to raise LCTitan’s production capacity by 65%, is set to complete by 2025 and help it capture the market in Indonesia, currently a petrochemical products net importer. Weak performance among petrochemical companies is seen across the board, with other players such as Petronas Chemicals Group Bhd set to see its lowest fullyear profit in three years on demand slowdown and unfavourable selling prices. Naphtha prices currently trade at around US$640 (RM3,030) per tonne, up from around US$500 per tonne just six months ago, tracking the rise in crude oil prices in 2H2023. Brent crude oil price currently trades at US$83 per barrel (/bbl), not far off its one-year average of US$82.79/bbl. LCTitan shares traded down three sen or 2.01% to close at RM1.46, giving it a market capitalisation of RM3.38 billion. The counter is still up 8.15% this year. Revenue (RM bil) Source: Bloomberg Lotte Chemical Titan Holding Bhd’s revenue/net loss 0.0 0.5 1.0 1.5 2.0 2.5 4Q FY22 FY23 1Q 2Q 3Q 4Q 2.1 2.0 1.9 2.0 1.9 Net loss (RM mil) -400 -300 -200 -100 0 4Q FY22 FY23 1Q 2Q 3Q 4Q -333.6 -224.8 -313.5 -55.6 -186.5
TUESDAY JANUARY 30, 2024 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): Econframe Bhd’s net profit for the first quarter ended Nov 30, 2023 (1QFY2024) jumped 88.6% to RM4.4 million from RM2.33 million a year ago, on the back of higher revenue. Earnings per share increased to 1.32 sen from 0.72 sen in the previous corresponding quarter, according to the door system solutions provider’s stock exchange disclosure on Monday. Quarterly revenue rose 61% to RM27.19 million from RM16.87 million in 1QFY2023, underpinned by higher revenue from the manufacturing segment, mainly due to contribution from its recently acquired 65%-owned subsidiary Lee & Yong Aluminium Sdn Bhd, a specialist in the fabrication and installation of aluminium glazing, glass products, and facade works. Compared to the immediate preceding quarter of 4QFY2023, the group’s net profit grew 8.34% from RM4.06 million, while revenue rose 29% from RM21.02 million. On prospects, Econframe said its current business orders remain robust, with its core operations being stable. “Additionally, the recent acquisition of Lee & Yong Aluminium Sdn Bhd is expected to generate KUALA LUMPUR (Jan 29): Chin Teck Plantations Bhd’s net profit declined 15.69% to RM21.33 million for the first quarter ended Nov 30, 2023, from RM25.3 million a year earlier, dragged down by weaker earnings from its associate company and joint ventures (JVs). This was despite a largely flat revenue of RM63.19 million, compared with RM62.96 million previously, on the back of increased sales volume of fresh fruit bunches, crude palm oil (CPO) and palm kernel, offset by lower selling prices. The oil palm planter’s earnings were hit by lower share of results of a property development associate and JVs of RM14,000 versus RM3.46 million in the same quarter a year ago. The palm oil plantation JVs in Indonesia incurred a loss. Commenting on its prospects for the remainder of the financial year ending Aug 31, 2024 (FY2024), Chin Teck said the current trend in the average selling prices of CPO is expected to remain. The group nevertheless expects satisfactory plantation results for FY2024. Shares in Chin Teck closed nine sen or 1.19% lower at RM7.45, valuing the group at RM680.66 million. synergies that will have a positive impact on the group’s earnings for the financial year ending 2024,” it said. In a separate statement, Econframe’s group managing director Lim Chin Horng said the group had successfully secured several projects and enhanced its order book after the acquisition of Lee & Yong Aluminium. “In view of the increase in Lee & Yong Aluminium’s order book, we have plans to expand the production capacity at its Kota Bahru facility. This would enable us to capture a larger market share and further cement our position in the industry,” Lim said. In line with its expansion efforts, Lim said the group had on Jan 15 entered a conditional share sale agreement for a 70% stake in ETA World Sdn Bhd, which is involved in industrial property development and construction, with mitigated investment risk through a three-year profit guarantee. Lim noted that the group’s acquisition of ETA World Sdn Bhd is part of the plan to grow inorganically, while staying within the value chain that the group is in. “ETA World has an outstanding order book of RM165.5 million as of end-December 2023, giving it clear earnings visibility in the coming years. More importantly, the profit guarantee of ETA World would ultimately enhance and diversify our bottom line,” Lim said. Shares in Econframe settled 1.5 sen or 1.81% lower at 82 sen on Monday, giving the group a market capitalisation of RM292.85 million. Econframe’s 1Q net profit jumps 88.6% on higher revenue Chin Teck’s 1Q profit drops 16% KUALA LUMPUR (Jan 29): Tasco Bhd’s net profit dropped 32.37% to RM13.82 million for the third quarter ended Dec 31, 2023 (3QFY2024) from RM20.44 million a year earlier, on the back of freight rate normalisation as well as weaker performance from its domestic business solutions (DBS) segment. Earnings per share dropped to 1.73 sen from 2.55 sen, according to the logistics solutions provider’s bourse filing on Monday. The normalising freight rates, as well as weaker domestic business divisions’ performance, was reflected in the group’s topline, as revenue fell 29.35% to RM277.45 million from RM392.69 million in 3QFY2023. Tasco’s international business solutions (IBS) segment posted a 40.62% decline in revenue to RM109.8 million from RM184.9 million, dragged by the normalised freight rates. Meanwhile, revenue of its DBS segment was down 19.35% to RM167.6 million from RM207.8 million, weighed down by weaker contributions from the group’s contract logistics division, warehouse, inplant and haulage businesses. For the nine-month period ended Dec 31, 2023, Tasco posted a 36.4% decline in net profit to RM43.89 million versus RM69 million a year prior, as revenue fell 39.99% to RM804.27 million from RM1.34 billion. The cumulative earnings were weaker Tasco 3Q net profit down 32% on freight rate normalisation, weaker domestic segment due to the same reasons that impacted its quarterly counterpart. Looking forward, Tasco said ocean freight rates have been on the rise due to the geopolitical conflict in the Red Sea, but is nevertheless offset by slowing global trade volume. “Taken as a whole, we remain cautious about the prospects of the group for the remaining period to the end of the financial year. “Downside risks for our group include the weaker-than-expected economic activity, economic recession in the current fragile global economic conditions, inflationary pressure in our cost structure and geopolitical trade war affecting our customers,” the group said. “We will continue to maintain our strategy to focus on servicing our customers with innovative logistics solutions and expand our logistics capacity when it is beneficial to our shareholders’ value,” it added. Shares in Tasco closed unchanged at 87 sen, giving the group a market capitalisation of RM696 million. BY IZZUL IKRAM theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com
TUESDAY JANUARY 30, 2024 10 THEEDGE CEO MORNING BRIEF HOME JOHOR BAHRU (Jan 29): International property developer Country Garden is actively upgrading several facilities in the Forest City area, in preparation for the implementation of the Special Financial Zone (SFZ) initiative. Its Malaysia-Singapore brand, sales and marketing general manager Fang Fang said the effort is crucial, so as to ensure that Forest City would attract new investors via the SFZ initiative. “Among the upgrades is the construction of a checkpoint for the Royal Malaysian Customs Department to relocate the existing checkpoint to a new place. “The construction of the new inspection centre, which is expected to be completed by the end of this year, will ensure smooth inspections by related agencies, while also enhancing enforcement in the area,” she said in a statement on Monday. Additionally, she said several infrastructure projects related to transport were being developed in the surrounding areas, aimed at improving access to and from the area. Among these projects are the eagerly awaited Kuala Lumpur-Singapore HighSpeed Rail project and the Light Rapid Transit West Line, with plans to establish stations in Forest City, Fang said. She said the cross-border bus service was also officially launched at the end of last year, to enable various types of public transportation based in the Forest City SFZ. “Forest City is also upgrading the Internet network services and completing various use of the latest technology, to ensure that it becomes one of the best financial zones in the region,” she said. Forest City welcomes the effort to introduce a QR code implementation system to facilitate faster clearance of people at land checkpoints, she added. “The adoption of QR code-based clearance process by both Malaysian and Singaporean authorities is seen as a profound change in the approach to the flow of people and goods in the region,” Fang said. On Aug 25 last year, Prime Minister Datuk Seri Anwar Ibrahim announced the setting up of a special financial zone in Forest City, as well as several incentives to boost economic activities in Johor and the surrounding areas. The Forest City project in Iskandar Puteri has been developed by Country Garden since 2015, with an investment worth US$100 billion (approximately RM473 billion). Country Garden upgrades facilities in Forest City to bolster Special Financial Zone initiative KUALA LUMPUR (Jan 29): Johor royalty-linked Maharani Energy Gateway Sdn Bhd (MEG) has secured a US$2 billion (RM9.47 billion) investment commitment from China Energy International Group Sdn Bhd (CEIG) for a renewable energy project located in the Maharani Energy Gateway Free Trade Zone (MEG FTZ) in Muar, Johor. The proposed project saw two collaborative framework agreements inked between MEG and CEIG on Monday to build a combined cycle gas turbine (CCGT) power plant and a green hydrogen and green ammonia plant. CEIG is the Malaysian subsidiary of China Energy Engineering Corp. “One of the key components of the project is a joint venture between MEG and CEIG to build a green hydrogen plant and a CCGT power plant in the MEG FTZ,” said MEG executive chairman Datuk Dr Daing A Malek at the signing ceremony. According to CEIG vice president of Southeast Asia regional headquarters Fan Yi, the CCGT plant is to have a peak generation capacity of 1.4GW, while the green hydrogen and green ammonia plant are to produce 3,400 metric tonnes (MT) of hydrogen and 18,800 MT of ammonia per year. “We start construction after financing closure and first of all we have to negotiate, assisted by MEG, to talk about the off-takers such as TNB and we also get gas supply from Petronas,” Fan said. “The first priority is we’re going to sign a PPA (power purchase agreement) with MEG, and MEG will supply power to all tenants in the FTZ,” she added. The MEG project is a sea reclamation project off the coast of Muar which aims to create an energy hub and deep-sea port with three man-made islands covering an area of 1,295 hectares square. A check with the Companies Commission Malaysia showed that MEG is 45% Royal-linked Maharani Energy Gateway secures RM9.5 bil renewable energy investment from China firm owned by K Energy Sdn Bhd, followed by the Sultan of Johor and soon-to-be Yang di-Pertuan Agong Sultan Ibrahim ibni Almarhum Sultan Iskandar, with a 40% stake, while Daing holds the remaining 15%. K Energy is equally owned by Eric Ong Zong Ren and Valerie Ong Huei Zhen. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, who was present to witness the signing ceremony, said government policies such as the New Industrial Master Plan 2030 and the New Energy Transition Roadmap have resulted in collaborations between foreign parties and domestic players. “To that end, I welcome the MEG project, which is strategically positioned right in the centre of the East-West trade route. It is only five sailing days away from China, an important market for oil and gas, and also 28 sailing days to the Middle East, and 38 days to the Black Sea,” he said during a speech at the signing ceremony. Zafrul also said that the MEG project would be a compelling proposition as a renewable energy-focused regional hub, as it is accessible to major cities such as Kuala Lumpur and Johor Bahru and benefits from its proximity to vast lands and water bodies. BY IZZUL IKRAM & HEE EN QI theedgemalaysia.com Bernama FORESTCITYCGPV.COM
TUESDAY JANUARY 30, 2024 11 THEEDGE CEO MORNING BRIEF H Financial Services umanising Find out more at maybank.my/trustees Maybank Trustees Berhad (196301000109)
TUESDAY JANUARY 30, 2024 12 THEEDGE CEO MORNING BRIEF HOME Ireka to exit RuMa project, pare stake in Aseana to settle 2009 JV dispute YNH now plans to sell 163 Retail Park to Sunway REIT for RM215 mil cash BY IZZUL IKRAM theedgemalaysia.com BY ADAM AZIZ KUALA LUMPUR (Jan 29): YNH Proper- theedgemalaysia.com ty Bhd is now planning to sell its Mont Kiara shopping mall, 163 Retail Park, to Sunway Real Estate Investment Trust (Sunway REIT) for RM215 million, cash. In a bourse filing on Monday, YNH said its wholly-owned D’Kiara Place Sdn Bhd has inked a sale and purchase agreement with RHB Trustees Bhd, the trustee of Sunway REIT, for the sale of the seven-storey retail shopping centre. YNH had previously inked an agreement in November 2022 to sell the mall for RM270.5 million — together with the AEON Seri Manjung in Perak for RM152 million — to ALX Asset Bhd, who would issue medium-term notes (MTNs) under a proposed asset-backed debt programme of up to RM500 million in nominal value to fund the all-cash deal. The disposals were deemed related party transactions as under the asset-backed MTN programme, YNH executive chairman and major shareholder Datuk Dr Yu Kuan Chon would subscribe to the first tranche of the junior MTNs. Kuan Chon’s brother, Datuk Yu Kuan Huat, who is the managing director of YNH, was also deemed interested in the disposals. However, the disposal of 163 Retail Park to ALX Asset was terminated last Friday, YNH said, due to the fact that the deal had yet to be completed. “The proposed disposal represents an opportunity for the group to unlock the value of monetising its investments in the property,” YNH Property said of its new plan to sell the asset to Sunway REIT. Of the proceeds, RM110.94 million will be used to redeem the property from its chargee, Public Bank Bhd. Another RM74.06 million will be used for the group’s working capital, while RM30 million will go towards the repayment of borrowings. “The group is expected to record a pro forma net loss of approximately RM12.04 million after accounting for the reversal of deferred tax, which is no longer required as there is no capital gains tax applicable for the disposal of property, from the proposed disposal,” the group said, noting that the property had an audited carrying amount of RM234.69 million as at end-June 2023. The five-year-old 163 Retail Park has a net lettable space of 255,535 sq ft, with an approximate occupancy rate of 93.99%, according to the group. The proposed disposal is expected to be completed by the second quarter of 2024 (2Q2024), subject to approval being obtained at the group’s forthcoming extraordinary general meeting. Last week, after being hit with an unusual market activity (UMA) query from Bursa Malaysia Securities, YNH told the bourse regulator that it had received offers for the Mont Kiara shopping mall and would make an announcement once a decision has been made and the terms finalised. Read the full story KUALA LUMPUR (Jan 29): Ireka Corp Bhd is transferring its 30% stake in two associates linked to The RuMa Hotel and Residences to joint venture partner Aseana Properties Ltd, as part of a settlement to a suit filed by Aseana Properties’ subsidiary last October. Ireka will also transfer back its 19.55% stake in Aseana as part of the settlement to the RM109.8 million suit filed by ASPL M9 Ltd, in relation to a JV agreement signed between Ireka, ASPL and Urban DNA Sdn Bhd for the RuMa project development back in 2009. Together, the settlement is expected to result in a net financial impact of RM15.2 million on the local-listed property player. The settlement will see Ireka transferring to Aseana its entire 30% stake in The RuMa Hotel KL Sdn Bhd and Urban DNA. Urban DNA is the RuMa project developer. Ireka received stakes in the RuMa project from Aseana in 2020 as part of a demerger exercise. In light of the settlement, Ireka Corp will also transfer back 38.84 million shares in Aseana under a share buyback agreement, conditional upon approval of Aseana’s shareholders. The shares represent a 19.55% stake in Aseana, and will leave Ireka Corp with 3.52% in the London-listed property player, from 23.07% currently. “Based on Aseana’s current share price of US$0.085 per share and the prevailing current foreign exchange rate of RM4.733 against the US dollar, the settlement would result in the write-off of other investment, approximately RM15.6 million to be recognised immediately,” Ireka said. This is offset by a reversal of Ireka Corp’s share of losses in Urban DNA and The RuMa Hotel KL of RM405,000, resulting in a net financial impact of RM15.2 million, it added. At the time of writing, shares of Aseana rose 1.5 sen to US$0.10 per share. Shares of Ireka Corp traded down one sen or 2.2% to close at 44.5 sen on Monday, valuing the group at RM100.26 million. Sunsuria to raise stake in Bangsar Hill Park developer by 33% BY ADAM AZIZ theedgemalaysia.com KUALA LUMPUR (Jan 29): Sunsuria Bhd is raising its stake in Bangsar Hill Park Development Sdn Bhd, the developer of the eight-block high-rise residential property Bangsar Hill Park, by another 33% for RM71.42 million cash. The related party transaction (RPT) will see Sunsuria raise its stake in the property developer to 84%, from 51% currently. Sunsuria is buying out two shareholders Suez Capital Sdn Bhd and Dasar Temasek Sdn Bhd with the purchase, leaving Sunsuria KL Sdn Bhd as the only other remaining shareholder with a 16% stake. Sunsuria KL is controlled by Tan Sri Ter Leong Yap, who is also the executive chairman and a major shareholder of Bursa-listed Sunsuria with 17.73% direct and 42.27% indirect stakes. Leong Yap is the brother of Datuk Ter Leong Hing, who is a director and the major shareholder of Suez Capital as well as a director and an indirect major shareholder of Dasar Temasek. Bangsar Hill Park was launched in August 2020, and is expected to be fully completed over the next eight years from the date of the announcement of the RPT (Jan 29), with estimated costs of around RM1.6 billion outstanding. Read the full story
TUESDAY JANUARY 30, 2024 13 THEEDGE CEO MORNING BRIEF HOME TMC Life Sciences suspends CEO Wan Nadiah, reason not disclosed Bintai Kinden secures RM59 mil debt settlement plan, shareholders’ nod for private placement BY LAM JIAN WYN theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com KUALA LUMPUR (Jan 29): TMC Life Sciences Bhd said it has suspended the employment of Wan Nadiah Wan Mohd Abdullah Yaakob as its group chief executive officer (CEO), and as CEO of its subsidiary Thomson Hospitals Sdn Bhd. The powers, authorities and functions vested in her as CEO are suspended with effect from Monday until further announcement by the board, the group said in a bourse filing, without disclosing any reason for the suspension. “The board wishes to announce further that the company will continue its business as usual and during the period of suspension, one of our directors, Dr Heng Jun Li Melvin, will be appointed as the acting group CEO, who will temporarily assume the duties and functions of group CEO,” the group added. Heng, 41, is currently also the executive director and group CEO of Thomson Medical Group Ltd, Singapore. Prior to that, he was the CEO of Gleneagles Hospital under IHH Healthcare Bhd, after holding several high ranking roles within the healthcare industry. Heng holds a Masters of Business Administration from Frankfurt School of Finance & Management and a Bachelor of Medicine and Bachelor of Surgery from University of London, St Georges Hospital. Wan Nadiah was appointed executive director of TMC in February 2019. Prior to that, she was the chief operating officer at Sunway Medical Centre after being promoted from director of its business development and corporate communications in October 2016. In 2021, Wan Nadiah was the only Malaysian to be listed in Forbes Asia’s top 20 Power Businesswomen. She was recognised for her efforts as CEO of the flagship hospital where she introduced a Covid-19 task force at the hospital and launched a mobile app, providing remote end-to-end patient care from appointments, screening and assessments to rehab services and medication delivery. She holds a Masters in Public Health (Nutrition) from the London School of Hygiene and Tropical Medicine in the UK and a degree in Biochemical Sciences from Harvard College, USA. She currently serves as vice president of the Harvard Club of Malaysia. Shares of TMC closed one sen or 1.39% higher at 73 sen, for a market capitalisation of RM1.27 billion. KUALA LUMPUR (Jan 29): Bintai Kinden Corp Bhd, which fell into Practice Note 17 (PN17) status in March 2023, has obtained an interim settlement plan from a debtor as well as the approval of its shareholders for a private placement exercise, developments the group hailed as “strategic advancements towards financial resiliency and operational vitality”. In a statement on Monday, the mechanical and electrical engineering services specialist and medical device manufacturer and facilities operator said its wholly owned subsidiary Optimal Property Management Sdn Bhd (OPM) has accepted an interim settlement proposal (ISP) with Kolej Teknologi Islam Melaka Bhd (KTIMB) over its default and outstanding debts of RM58.9 million. “This pivotal agreement entails an immediate disbursement of RM1.5 million to OPM by Jan 30, 2024, and a series of six RM250,000 per month instalments totalling an additional RM1.5 million from January to June 2024. “In addition, as part of the ISP terms, KTIMB has agreed to work with and conclude a final settlement with OPM by May 31, 2024, by evaluating three options, namely the termination of the current concessionaire agreement (CA), a possible takeover of OPM by KTIMB or a designated entity at an agreed valuation, or a restructuring of the outstanding CA-related debts and charges,” said Bintai Kinden. Bintai Kinden slipped into PN17 status after it defaulted on RM109 million worth of financing facilities from MBSB Bank Bhd, as KTIMB owed RM49.8 million to OPM for the construction of a hostel for Universiti Melaka. Bintai Kinden Corp Bhd managing director and chief executive officer Datuk Tay Chor Han said, “As the new management continues to steer the Bintai Kinden group forward, these steps are necessary in laying a solid foundation for Bintai Kinden’s financial stability as well as future growth and stability.” KTIMB had awarded the RM121 million project to OPM via a CA in 2016. After the default, MBSB terminated Bintai Kinden’s role as the corporate guarantor for the Islamic banking facilities, triggering Paragraph 2.1(f) of PN17 of the Main Market Listing Requirements, which pertains to a default in payment by a listed issuer, its major subsidiary or major associated company, and is unable to provide a solvency declaration. MBSB then sued Bintai Kinden over the default, and claimed an outstanding amount of RM238.52 million up to April 6, 2023, as well as compensation charges of 1% per annum on the amount of RM107.54 million calculated from April 7, 2023, until the date of judgement. In December 2023, however, MBSB withdrew its suit against the group after Bintai Kinden managed to secure a conditional relief indulgence (CRI) agreement to settle RM3 million worth of debt with the bank. Bintai Kinden Corp Bhd managing director and chief executive officer Datuk Tay Chor Han said, “As the new management continues to steer the Bintai Kinden group forward, these steps are necessary in laying a solid foundation for Bintai Kinden’s financial stability as well as future growth and stability.” Read the full story
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TUESDAY JANUARY 30, 2024 15 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): Haily Group Bhd has bagged a contract to build residential properties and a substation in a township in Johor Bahru for a total contract sum of RM32.33 million. According to a bourse filing on Monday, the construction outfit said its wholly owned subsidiary Haily Construction Sdn Bhd had accepted a letter of award issued by Gunung Impian Development Sdn Bhd for the construction and completion of 76 units of double-storey cluster houses and a unit of double chamber TNB substation. The project is scheduled to commence on Feb 1, 2024, and to be completed by April 30, 2025. Including the latest win, Haily has announced six contractor project awards since the start of 2023 with contract value totalling RM336.78 million, all of which are located in Johor. In December, Haily secured a RM64 million contract to develop 327 units of double-storey terrace houses and two TNB substations in Taman Bestari Perdana, also in Johor Bahru, from Meridin East Sdn Bhd. Prior to that in July, it won a contract worth RM53.8 million from Tasek Maju Realty Sdn Bhd to develop 170 units of double-storey cluster houses in Taman Mutiara Maju. In March, it secured a RM32.66 million contract from JYP Architects Sdn Bhd to develop 186 units of single-storey terrace houses with one substation in Bandar Putra, Senai. The month before in February, Haily secured a contract from Mandy Corp Sdn Bhd worth RM78.28 million, to develop 262 double-storey terrace houses and two substations in Gelang Patah. On Jan 10 last year, it secured a RM37.85 million contract from RDC Arkitek Sdn Bhd to develop 77 units of three-storey shop offices, one substation and two compact substations. Shares in Haily ended unchanged at 42 sen on Monday, giving the group a market capitalisation of RM73.12 million. Haily bags another residential construction project in Johor worth RM32 mil KUALA LUMPUR (Jan 29): Pestech International Bhd has secured an RM11 million contract from Tenaga Nasional Bhd (TNB) for the supply, erection, testing and commissioning of new primary and secondary equipment in Ayer Tawar, Perak. The contract also entails relevant protection, control, ancillary equipment and associated civil works. In a bourse filing on Monday, the electrical power technology group said it received the letter of award on Jan 26 “and the time for completion shall be 540 days from the commencement date to be determined by TNB later”. The contract is expected to contribute positively towards the group’s revenue and earnings in accordance with the stages of progress to be recognised, Pestech added. The group said it will in the near future be focusing on securing engineering, procurement, construction, and commissioning (EPCC) projects in the rail electrification and power grid built-up. “The strategic emphasis will revolve around leveraging and highlighting Pestech’s core competencies in the EPCC segment. Simultaneously, the group is undergoing a concerted effort to explore business opportunities in its market segments,” it added. Pestech shares closed up 0.5 sen to 28.5 sen on Monday, giving the group it a market capitalisation of RM282.78 million. KUALA LUMPUR (Jan 29): Information and communications technology products distributor VSTECS Bhd will be offering SpaceX’s Starlink high-speed internet in Malaysia. In a statement on Monday, VSTECS said its wholly owned subsidiary VSTECS Astar Sdn Bhd has signed a distribution agreement and has been named an authorised Starlink distributor. VSTECS said the group will be leveraging its extensive network of channels and established relationships with retailers and diverse client base across critical sectors like education, healthcare, finance, and the public sector to offer the product. “We have already appointed Harvey Norman as the first official retailer, and are actively building a network of trusted retailers to maximise seamless deployment across the country,” it said. VSTECS chief executive officer JH Soong said the collaboration with Starlink will complement the Malaysian government’s vision of achieving 100% internet penetration throughout the country. “We are confident that this collaboration will be a game-changer for Malaysia,” he said. “This collaboration holds immense promise for propelling Malaysia into a new era of digital connectivity, empowering individuals, businesses, and communities alike. With VSTECS and Starlink joining forces, the future of Malaysia’s digital landscape is poised [for] an impactful progress,” Soong added. In an announcement on July 20, 2023, then communications and digital minister Fahmi Fadzil, who is now communications minister, said Malaysia has issued the licence Pestech bags equipment supply contract from TNB VSTECS named Starlink’s authorised distributor to offer high-speed internet in Malaysia BY EMIR ZAINUL theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com to allow Starlink to provide internet services in the country, particularly in remote areas. This makes Malaysia the 60th country to be served by the Elon Musk-owned satellite constellation. Besides VSTECS, other authorised Starlink distributors in Malaysia include REDtone and Measat. At market close on Monday, VSTECS shares were unchanged at RM1.44, with a market capitalisation of RM518.4 million. Year to date, the counter has seen an increase of 8.27% from RM1.33 at the start of the year.
TUESDAY JANUARY 30, 2024 16 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 29): Amid the continued talent deficit plaguing certain sectors in Malaysia, the Ministry of International Trade and Industry (Miti) Malaysia is mulling a proposal to allow foreign graduates of local higher education institutions to work in the country. “One example, we are still in discussion [and] we have not gone to [the] Cabinet yet, is to allow [international] students who are studying in Malaysian universities who are engineers in this field [to work in the country],” Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz told reporters during a press conference following the Miti Dialogue Session 2024. “Right now, they are not allowed to work [in Malaysia]. Maybe we can look at areas where there are not enough Malaysians, especially in value-added services [such as] high technology [sector], [we can] allow the [international] students to work in Malaysia for a period of time,” he added. Illustrating the scale of the issue, Zafrul underlined that the electrical and electronics (E&E) sector requires 50,000 engineers, but Malaysia, on the other hand, only produces 5,000 engineer graduates a year — not including foreign graduates in Malaysia and Malaysians studying abroad. According to Zafrul, as Malaysia continues to pull investments into the E&E Miti mulls proposal enabling foreign graduates to work in Malaysia amid talent deficit Bersatu to take legal action against reps who betrayed party — Hamzah BY IZZUL IKRAM & HEE EN QI theedgemalaysia.com Bernama Bernama Anwar hopes increase in Sumbangan Tunai Rahmah payments will alleviate people’s burden KUALA LUMPUR (Jan 29): Prime Minister Datuk Seri Anwar Ibrahim on Monday expressed hope that the significant increase in the Sumbangan Tunai Rahmah (STR) payments this year will be able to alleviate the burden of the people. Anwar, who is also the finance minister, said the maximum STR payment for the household category had increased by over 66% to RM500 from RM300 last year. He said he acknowledged that the hardship caused by the rise in the prices of goods is a major problem afflicting a large portion of the population. “The Madani Government is committed to ensuring a dignified life for the people. The key to national stability lies in fairness and social justice as envisioned in the Madani Economy framework. “I hope that the recipients of Phase 1 of the STR can make the best use of this assistance,” he posted on Facebook. Payments for Phase 1 STR to 8.2 million recipients began on Monday. According to the Ministry of Finance, recipients from the household category with income less than RM2,500 will receive RM500, while the household category with income between RM2,501 and RM5,000 will be eligible to receive between RM100 and RM300. Senior citizen recipients with no spouse and single individual will receive RM150 and RM100 respectively. Read also: Results of Teraju Aspiration Symposium to be used for Bumiputera Economic Congress — Rafizi sector, and other affected sectors, the country needs to ensure that a sufficient number of talent is available for investors. “The other day we opened AT&S in Kulim, Kedah, they needed 6,000 engineers, and previously Intel needed 5,000 engineers. Its (investments coming into the country) a positive, but at the same time, the country needs to ensure that the required talent is there,” he said. Zafrul also highlighted the importance of enticing Malaysian workers and students abroad to return and work locally. “This is where we need to ensure that the right pay scale and opportunities come because some of them, especially in the AI (artificial intelligence) sector, want to work in Malaysia but they don’t have opportunities,” Zafrul said. “And, now we’re saying that there are opportunities so we can also work with the Human Resources Ministry (MOHR) through TalentCorp and the various others (agencies) to start engaging the Malaysians abroad,” he added. He said Miti will set up a committee with the MOHR and the Higher Education Ministry to coordinate efforts in addressing the talent shortage issue, adding that it has also engaged with the national TVET council. In the first nine months of 2023, Malaysia attracted RM225 billion worth of investments — RM125.7 billion in foreign direct investments (FDIs) and RM99.3 billion in domestic direct investments. This included various investment commitments from the technology sector, such as the likes of semiconductor giants Texas Instruments and Infineon, and US chip giant Nvidia. More recently, Miti yielded RM2.8 billion of committed FDIs from two companies related to digital infrastructure and food manufacturing during its investment mission to Singapore earlier this month. KUALA LUMPUR (Jan 29): Parti Pribumi Bersatu Malaysia (Bersatu) will take legal action against its elected representatives who betrayed the party. Its secretary general Datuk Seri Hamzah Zainudin, in a statement on Monday, said the matter was part of the decisions made at the party’s Supreme Leadership Council’s meeting held at its headquarters on Sunday night. “The meeting agreed to take legal action against those who betrayed the party, for the purpose of vacating the seat and preparing for a by-election. “The meeting also agreed to amend Article 10 of the party’s constitution to prevent betrayal by its elected representatives from recurring in the future,” he added.
TUESDAY JANUARY 30, 2024 17 THEEDGE CEO MORNING BRIEF H O W T O E N T E R Download entry forms on bmspa.theedgemalaysia.com For enquiries, contact The Edge Corporate Communications at: [email protected] S U B M I S S I O N D E A D L I N E All entries must reach The Edge Communications Sdn Bhd, Lobby Level, Menara KLK, No. 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor by 5pm, Wednesday, 21 February 2024 Awards results audited by Deloitte AWA R D S O B J E C T I V E Promote sustainable real estate in Malaysia through recognition of: • Malaysia’s best property management practices • Property in Malaysia designed and built for sustainability NO W OPEN fO R ENTRIES ( No F ees required ) • All Residential, Office, Mixed Development, Specialised and Retail properties managed in-house/by property building managers • Strata and Non-strata buildings • Re-purposed buildings ALSO OPEN fOR SUBMISSION ( No F ees required ) • The Edge Malaysia’s responsible developer: Building sustainable development Award • The Edge-iLAM Malaysia’s sustainable Landscape Award Enter now! PRESENTED By MAiN PARTNER SUPPORTED By
TUESDAY JANUARY 30, 2024 18 THEEDGE CEO MORNING BRIEF HOME KUCHING (Jan 29): Sarawak’s newly appointed head of state Tun Dr Wan Junaidi Tuanku Jaafar was on Monday sworn in as the eighth Yang Dipertua Negeri at the State Legislative Assembly Building here. Wan Junaidi and his wife Toh Puan Fauziah Mohd Sanusi were received on arrival at the venue by Sarawak Premier Tan Sri Abang Johari Tun Openg and his wife Puan Sri Juma’ani Tun Tuanku Bujang, as well as State Assembly Speaker Datuk Amar Mohd Asfia Awang Nasar. The ceremony started with Wan Junaidi inspecting a main guard of honour mounted by 102 officers and men of the Royal Malaysia Police (PDRM) led by DSP Mohamad Zaini Ismail. He then proceeded to the Dewan Lapau for the swearing-in ceremony at 4pm. Wan Junaidi took his oath of office and signed the Surat Sumpah (Oath Letter), witnessed by the Chief Judge of Sabah and Sarawak Tan Sri Abdul Rahman Sebli. He then signed the Letter of Declaration as the Yang Dipertua Negeri, witnessed by the Sarawak premier. Wan Junaidi, who will celebrate his 78th birthday on Feb 1, received the instrument of appointment from Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah Ibni Al Marhum Sultan Ahmad Shah at Istana Negara last Friday. His appointment, made in accordance with Article 1 of the Sarawak State Constitution, is for a four-year term from Jan 26, 2024 to Jan 26, 2028, replacing Tun Abdul Taib Mahmud, who held the post for three terms beginning March 1, 2014. Wan Junaidi sworn in as eighth Sarawak governor (Jan 29): A key backer of Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s fragile ruling alliance urged the nation’s politicians to stop undermining the government, arguing the country needs political stability to focus on pressing economic challenges. Tan Sri Abang Johari Tun Openg — who leads Malaysia’s largest state, Sarawak, on the island of Borneo — said he’s told his political colleagues to “stop creating so many problems” for the 14-monthold government. That followed reports that opposition leaders met in Dubai last month to discuss undercutting Anwar, Malaysia’s fifth prime minister since 2018. “There are many external problems that can affect us,” the premier told Bloomberg News in his office in Kuching city. “We must be able to look at ourselves and how we can strengthen our own competitive advantage,” he said, adding that “leaders cannot concentrate” if domestic politicians keep creating instability. The warning from Abang Jo, as the 73-year-old premier is popularly known, comes just over a year after he threw the support of his state’s ruling coalition, Gabungan Parti Sarawak, behind Anwar when the 2022 elections produced a hung parliament. GPS — which has 23 seats in Malaysia’s 222-member lower house — had been courted by both Anwar and his rival, Tan Sri Muhyiddin Yassin, after the vote. “We want a stable federal government regardless of who is in power,” Abang Johari said. Ever since then-Prime Minister Datuk Seri Najib Razak stepped down following the 2018 election, Malaysia’s prime ministers have lasted less than two years on the job on average. Moody’s Investors Service echoed Abang Johari’s concerns about the economic impact of the political turmoil. In a Jan 16 report, Moody’s said, “Entrenched concerns around the stability of the unity government risks fomenting negative investor perceptions of Malaysia’s political risks and policy gridlock, hampering the country’s longer term economic competitiveness.” The tumult has weighed on Malaysia’s currency, with the ringgit the worst performing currency since the start of 2023 among emerging markets in Asia. It hasn’t reversed that slide in 2024, falling 2.9% against the dollar this month. Support for Anwar also tumbled to 50% late last year from 68% in December 2022. About 43% of respondents said they were dissatisfied with the economy, up from 19% soon after he took power. The Opposition has its own struggles. A former Malaysian minister who was once an adviser to ex-prime minister Tun Dr Mahathir Mohamad was charged on Monday for not declaring his wealth as the nation steps up its anti-corruption probes. While Anwar has managed to stave off his political opponents so far, the partnership Abang Johari has established with the federal government has been a boon for Sarawak and its population of about 2.8 million. The premier said he’s pressing ahead with plans for Sarawak to own its own bank, port and airline, while providing free tertiary education for locals. “Abang Johari and Anwar need each other,” said Awang Azman Awang Pawi, a socio-political analyst from Universiti Malaya. He said the state’s voters might not take kindly to the alternative to Anwar — the Islamic party PAS, the biggest national opposition party. Sarawak is the only state in Malaysia with a majority non-Muslim population. Economic ambitions In the interview, Abang Johari said he’s happy with how Anwar has dealt with Sarawak, having facilitated the transfer of Bintulu port, northeast of Kuching, to the state and backed Sarawak’s takeover of Malaysia Airlines’ subsidiary, MASWings — a move that will make Sarawak the first Malaysian state with its own airline. Abang Johari said the airline is a strategic asset for the state, which wants to see airfares stabilize to help boost travel to Borneo, an island divided between Malaysia, Indonesia and Brunei. “We are an island, you have to fly,” he said. “If we don’t stabilise the price, then we are in a difficult situation.” Sarawak also looks set to finalize a deal to have its own bank in the coming days. Abang Johari said there is a “bank on the market” and that an effort to seek regulatory approvals for a takeover are underway. Read the full story Sarawak premier urges rivals to stop undercutting Anwar BY RAM ANAND Bloomberg Bernama
TUESDAY JANUARY 30, 2024 19 THEEDGE CEO MORNING BRIEF WORLD (Jan 29): The US wants cloud services providers such as Amazon.com Inc and Microsoft Corp to actively investigate and call out foreign clients developing artificial intelligence (AI) applications on their platforms, escalating a tech conflict between Washington and Beijing. The Biden administration proposal, scheduled for release Monday, requires such firms to reveal foreign customers’ names and IP addresses. Amazon and its peers, which include Alphabet Inc’s Google, would have to devise a budget for collecting those details and report any suspicious activity, according to draft rule published on Sunday. If implemented, Washington could use those requirements to choke off a major avenue through which Chinese firms access the data centres and servers crucial to training and hosting AI. They also place the onus of collecting, storing and analysing customer data on the cloud services, a burden not unlike strict “know-your-customer” rules that govern the financial industry. US cloud providers have worried that restrictions on their activities with overseas users without comparable measures by allied countries risks disadvantaging American firms. Representatives for Microsoft, Amazon and Google didn’t immediately respond to requests for comment outside normal US hours. A Commerce Department spokesperson referred Bloomberg to Commerce Secretary Gina Raimondo’s comments last week. Raimondo said last Friday her team was working to eradicate national security threats posed by AI development, an effort likely to focus on firms from China. Washington, which has already worked to constrain Beijing’s access to the most advanced semiconductors, wants to limit Chinese firms’ ability to develop AI with potential military capabilities. “These models getting in the hands of non-state actors or people that aren’t our allies is very dangerous,” Raimondo said in Washington. President Joe Biden in October directed the Commerce Department to require such disclosures in an effort to detect foreign actors that might use AI to launch what the proposal dubs “malicious cyber-enabled activities.” The US is asking for comments on the proposed rule through April 29 before finalising the regulation. China’s development of AI and other next-generation technologies is a top concern for the administration, which sees Beijing as its primary global strategic competitor. Washington has tried to rein in China’s advances by restricting chip exports to the country and sanctioning individual Chinese firms, but the country’s tech leaders have managed to make significant breakthroughs despite US curbs. The US in October tightened its controls to capture more chips, equipment and geographies. One key update targeted Chinese-headquartered companies operating in more than 40 countries, an attempt to prevent those firms from using other nations as intermediaries to secure semiconductors they can’t access at home. US wants cloud firms to reveal foreign clients in China AI race (Jan 29): The Red Sea shipping crisis is sending waves through Asia’s fuel markets, hoisting costs even on routes that don’t use the waterway, while spurring sellers to reduce cargo premiums to offset the higher freight. Rates for shipping products such as gasoline have jumped as some vessels sail longer distances to avoid the Red Sea after attacks by Iran-backed Houthi rebels. That’s tightened the market, first boosting costs of long-distance routes via the Middle East, and now spilling into voyages within Asia. Global commodity markets — especially for crude oil and related products — are transfixed by the standoff, which worsened in recent days after a fuel-laden tanker operated on behalf of trading giant Trafigura Group was set ablaze by a Houthi missile. The rebel group has been attacking merchant ships in support of Hamas against Israel, prompting retaliatory strikes led by the US. “The most recent attack on a laden tanker suggests things are getting worse, and not better,” said Anoop Singh, global head of shipping research at Oil Brokerage Ltd. The diversions have added 3% to demand for clean tankers, which carry refined products, and about 1% to dirty-tanker demand, he said. The cost of shipping 35,000 tons of fuel from South Korea to Singapore jumped almost 50% over the last week to more than US$49,000 a day, the highest since 2022, according to Baltic Exchange data. Meanwhile, the cost of larger tankers connecting the Middle East to Japan has hit the highest since 2020. Given the upsurge in freight costs, there are signs that fuel producers are having to slash cargo prices in order to keep supplies affordable for customers amid lukewarm buying interest for gasoil and jet fuel. SK Energy Co sold three gasoil cargoes last week for February-to-March loading at a steeper discount to regional benchmarks, traders said. The refiner also canceled an offer of a jet-fuel cargo due to low bids. Red Sea shipping crisis sends tremors through Asia fuel markets BY ELIZABETH LOW Bloomberg BY COURTNEY ROZEN & MACKENZIE HAWKINS Bloomberg
TUESDAY JANUARY 30, 2024 20 THEEDGE CEO MORNING BRIEF WORLD HONG KONG (Jan 29): A Hong Kong court on Monday ordered the liquidation of property giant China Evergrande Group, a move likely to send ripples through China’s crumbling financial markets as policymakers scramble to contain a deepening crisis. Judge Linda Chan decided to liquidate the world’s most indebted developer, with more than US$300 billion (RM1.4 trillion) of total liabilities, after noting Evergrande had been unable to offer a concrete restructuring plan more than two years after defaulting on a bond repayment and after several court hearings. “It is time for the court to say enough is enough,” Chan said in the morning court session on Monday. She later appointed Alvarez & Marsal as the liquidator. Chan said the appointment of a liquidator would be in the interests of all creditors because it could take charge of a new restructuring plan for Evergrande at a time when its chairman, Hui Ka Yan, is under investigation for suspected crimes. Evergrande chief executive Siu Shawn told Chinese media the company will ensure home building projects will still be delivered despite the liquidation order. The ruling would not affect the operations of Evergrande’s onshore and offshore units, he added. “Our priority is to see as much of the business as possible retained, restructured, and remain operational. We will pursue a structured approach to preserve and return value to the creditors and other stakeholders”, said Tiffany Wong, managing director of Alvarez & Marsal after the appointment. The decision sets the stage for what is expected to be a drawn-out and complicated process with potential political considerations as investors watch whether the Chinese courts will recognise Hong Kong’s ruling, given the many authorities involved. Offshore investors will be focused on how Chinese authorities treat foreign creditors when a company fails. “It is not an end but the beginning of the prolonged process of liquidation, which will make Evergrande’s daily operations even harder,” said Gary Ng, senior economist at Natixis. “As most of Evergrande’s assets are in mainland China, there are uncertainties about how the creditors can seize the assets and the repayment rank of offshore bondholders, and situation can be even worse for shareholders.” Evergrande’s shares were trading down as much as 20% before the hearing. Trading was halted in China Evergrande and its listed subsidiaries China Evergrande New Energy Vehicle Group and Evergrande Property Services after the verdict. Complicated process Evergrande, which has US$240 billion of assets, sent a struggling property sector into a tailspin when it defaulted on its debt in 2021 and the liquidation ruling will likely further jolt already fragile Chinese capital and property markets. Beijing is grappling with an underperforming economy, its worst property market in nine years and a stock market wallowing near five-year lows, so any fresh hit to investor confidence could further undermine policymakers’ efforts to rejuvenate growth. Evergrande applied for another adjournment on Monday as its lawyer said it had made “some progress” on the restructuring proposal. As part of the latest offer, the developer proposed creditors swap their debts into all the shares the company holds in its two Hong Kong units, compared to stakes of about 30% in the subsidiaries ahead of the last hearing in December. Evergrande’s lawyer argued liquidation could harm the operations of the company, and its property management and electric vehicle units, which would BY CLARE JIM & XIE YU Reuters China Evergrande ordered to liquidate in landmark moment for crisis-hit sector in turn hurt the group’s ability to repay all creditors. Evergrande had been working on a US$23 billion debt revamp plan with a group of creditors known as the ad hoc bondholder group for almost two years. A court document on Monday showed Evergrande’s key offshore assets also include an unsecured interest-free loan of HK$2.1 billion to a previous unit, China Ruyi, positions in the Greater Bay Area Homeland Investment and its fund with a total book value of HK$1.6 billion, bank balances of HK$3 million and receivables of 131.2 billion yuan owed by its subsidiaries. Evergrande could appeal the liquidation order, but the liquidation process would proceed pending the outcome of the appeal. “We’re not surprised by the outcome and it’s a product of the company failing to engage with the ad hoc group,” said Fergus Saurin, a Kirkland & Ellis partner who had advised the offshore bondholders. “There has been a history of last minute engagement which has gone nowhere. And in the circumstances, the company only has itself to blame for being wound up.” Evergrande cited a Deloitte analysis during a Hong Kong court hearing in July that estimated a recovery rate of 3.4% if the developer were liquidated. After Evergrande said in September its flagship unit and its chairman Hui Ka Yan were being investigated by the authorities for unspecified crimes, creditors now expect a recovery rate of less than 3%. Evergrande’s dollar bonds were bid at around 1-1.5 cents on the dollar last week. The ruling is expected to have little impact on the company’s operations including home construction projects in the near term, as it could take months or years for the offshore liquidator appointed by the creditors to take control of subsidiaries across mainland China — a different jurisdiction from Hong Kong. The liquidation petition was first filed in June 2022 by Top Shine, an investor in Evergrande unit Fangchebao which said the developer had failed to honour an agreement to repurchase shares it had bought in the subsidiary. Before Monday, at least three Chinese developers have been ordered by a Hong Kong court to liquidate since the current debt crisis unfolded in mid-2021. BLOOMBERG
tuesday january 30, 2024 21 The E dge C E O m o rning brief world China urges faster progress in billion-dollar railway link to Thailand China removes article on ‘merger’ of baddebt managers with CIC Bloomberg by Liz Lee, Ryan Woo & Panu Wongcha-um Reuters (Jan 29): China’s official Xinhua News Agency deleted a report saying that Beijing plans to “merge” three of its biggest bad debt managers into China Investment Corp (CIC). The short report published on Sunday stated without elaborating that China Cinda Asset Management Co, China Orient Asset Management Co and China Great Wall Asset Management Co would be “merged” into the country’s US$1.24 trillion (RM5.86 trillion) sovereign wealth fund. The move would be part of China’s plan to reform institutions, according to the report. Bloomberg News reported in May last year that China was considering transferring the state’s stakes in the three bad debt managers to Central Huijin Investment Ltd, a unit of CIC. The Ministry of Finance holds a controlling stake in the three, with 58% in Cinda, 71.6% in Orient and 73.5% in Great Wall, according to their latest available annual reports. CIC and the ministry didn’t immediately reply to requests for comment. While the move will allow Beijing to separate the government’s roles as a regulator and shareholder in order to better focus on curbing risks, the transfers could raise questions over the strength of direct government support. Concerns over reduced government support for the asset management companies (AMCs) had just led to a downgrade by Fitch Ratings Ltd earlier this month. Katie Chen, a senior director at Fitch, said the AMCs’ current ownership structure and lengthy government approval processes could adversely affect the timeliness of required support or resolution. “Any change of ownership structure that streamlines the capital support process and improves timeliness could be positive to the AMCs’ ratings, if they prove effective,” said Chen. “We believe the Chinese government is, and will continue to be the ultimate support provider to the AMCs in the event of need.” The report gave a brief lift to the firms’ bonds and shares on Monday. Cinda’s shares jumped as much as 7.8%, before paring gains to 3.9% in morning trading in Hong Kong. Central Huijin has long been the primary vehicle for holding the state’s stake in many of the country’s largest financial institutions. It has direct ownership in 19 financial institutions as of end-June, according to its website. China Huarong Asset Management Co, once the biggest among so-called AMCs, is not part of the transfers after a government-orchestrated bailout in 2021 that saw Citic Group become its largest shareholder. Huarong roiled Asian credit markets in 2021 as it failed to release its annual report on time, eventually revealing a massive loss for 2020. China created Cinda, Great Wall, Orient and Huarong to buy bad loans from banks in the aftermath of the late 1990s Asian financial crisis, when decades of government-directed lending to state companies had left China’s biggest lenders on the brink of insolvency. The firms later expanded beyond their original mandate, creating a labyrinth of subsidiaries to engage in other financial businesses, including shadow lending. BEIJING/BANGKOK (Jan 29): China and Thailand must accelerate the construction of a planned high-speed railway linking the countries, Chinese Foreign Minister Wang Yi said on Monday, pushing an ambitious Southeast Asian network. Wang did not spell out a time frame, but the Thai government currently expects the 873km section in Thailand to be up and running in 2028. Under the Belt and Road initiative, a global trade and infrastructure plan championed by Chinese President Xi Jinping, Beijing has pushed for a high-speed railway network that links the southwestern Chinese city of Kunming to as far south as Singapore. The plan involves three routes originating in Kunming passing through Myanmar, Thailand and Vietnam, then joining in Bangkok. Construction of the section in Thailand — seen by some as a “fiscal trap” — has been delayed in recent years for reasons ranging from cost-sharing to Covid-19. Thailand and China must promote the early implementation of the China-Laos-Thailand connectivity concept, the Chinese Foreign Ministry cited Wang as telling Thai Prime Minister Srettha Thavisin in Bangkok. According to Thailand, construction of the first phase from Bangkok to Nakhon Ratchasima is over 15% complete, and should be operational by 2027. The second leg should be ready by 2028. The Thailand section was delayed in 2016, when Bangkok rejected Chinese financing due to what it said were high interest rates. It later agreed to shoulder the entire construction cost of 179 billion baht (US$5 billion or RM23.84 billion) for the 252km first phase, with China responsible for installing systems, design, and procurement of trains. The second phase is to connect Nakhon Ratchasima to the Nong Khai province, which borders Laos and will eventually link up to China. The outlook for the section connecting Bangkok with Malaysia and Singapore remains unclear after Kuala Lumpur halted the plan previously. Chinese Foreign Minister Wang Yi did not spell out a time frame, but the Thai government currently expects the 873km section in Thailand to be up and running in 2028. Reuters Reuters
TUESDAY JANUARY 30, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (Jan 29): Microsoft’s early lead in artificial intelligence (AI) has the software heavyweight’s stock market value poised to pull decisively ahead of Apple’s over the next five years, 13 institutional investors unanimously agreed ahead of the tech titans’ quarterly results this week. Microsoft’s shares have surged 7% so far in 2024, recently sending its stock market value above US$3 trillion and dethroning Apple as the world’s most valuable company. As of Friday, the Redmond, Washington software maker’s market capitalisation was a few billion dollars above Apple’s. Asked which would be more valuable five years from now, all 13 investments strategists and portfolio managers consulted by Reuters last week said they expect Microsoft to outpace Apple. Share prices and valuations could shift this week, as Microsoft reports its quarterly results on Tuesday, followed by Apple on Thursday. In the long term, though, all the investors consulted by Reuters said Microsoft’s recent successes in generative AI give it a powerful advantage over Apple. Still, the race between Apple and Microsoft could turn into a race for second place, some said, citing the huge recent gains by Nvidia, whose chips have powered the AI revolution. Microsoft made early investments in ChatGPT-maker OpenAI and is incorporating generative AI technology across its business. AI is likely to benefit Microsoft’s cloud-computing offerings, as it competes with Amazon and Alphabet in that burgeoning market. In its applications business, Outlook now offers users AI help in composing emails. Microsoft “has more levers to pull in the forms of Azure cloud, gaming, enterprise software, and of course, AI is the most compelling,” said King Lip, chief strategist at Baker Avenue Wealth Management. “Apple is most reliant on the iPhone, which is a mature market, and the company has yet to detail how it will compete in the AI arms race.” Apple has been quietly incorporating AI into product functions, such as snapping better iPhone photos, but investors will want to hear more AI plans when the company reports its December quarter results. They will also be watching China, BY NOEL RANDEWICH Reuters Investors see Microsoft’s stock market value leaving Apple behind where demand for iPhones has slumped due to a slow economic recovery from the Covid-19 pandemic, and as a resurgent Huawei erodes the Cupertino, California company’s market share. Apple starts sales of its Vision Pro mixed-reality headset in the US on Friday, its most expensive bet in more than a decade. Since Steve Jobs launched the iPhone in 2007, Apple’s stock has surged more than 4,300%, helping Apple eclipse Exxon Mobil in 2011 as Wall Street’s most valuable company, and making it a cornerstone investment of portfolio managers trying to outperform the S&P 500. With investors worried about soft demand for iPhones in China, Apple’s stock is flat so far in 2024, underperforming the S&P 500’s nearly 2.5% rise, as well as the 7% surge in Microsoft shares this year. Microsoft’s shares also rallied 57% rally in 2023, thanks to its lead in generative AI. Its stock is now trading at 33 times expected earnings, compared with a forward PE of 28 for Apple and around 20 for the S&P 500, according to LSEG. “These are quality growth companies ... but in order to warrant these valuations, they need to continue to grow at aggressive clips. You’re going to need increases in productivity, and I think Microsoft is better poised than Apple to do so,” said Mike Dickson, head of research at Horizon Investments. Fifty Wall Street analysts recommend buying Microsoft shares, while four analysts have neutral ratings and none recommend selling, according to LSEG data. Apple has 26 positive analyst ratings and 12 neutral ratings, while two analysts recommend selling, including a downgrade to “underweight” by Barclays this month due to worries about “lackluster” iPhone sales. Nvidia, now the most valuable chipmaker after its shares more than tripled last year, may also be a contender for the world’s most valuable company in the next few years, said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. After hitting record highs last week, Nvidia’s market capitalisation reached over US$1.5 trillion, making it Wall Street’s fifth most valuable company, less than US$200 billion behind Amazon. “I have told our brokers and clients that Nvidia is like Microsoft in the early 90s, and Intel in the early 80s,” Kaufman said. Still, the race between Apple and Microsoft could turn into a race for second place, some said, citing the huge recent gains by Nvidia, whose chips have powered the AI revolution. REUTERS
tuesday january 30, 2024 23 The E dge C E O m o rning brief world (Jan 29): A push in Hong Kong to roll out rules for stablecoins as soon as this quarter has drawn interest from companies including the international arm of major Chinese asset manager Harvest Fund Management Co, people familiar with the matter said. Harvest Global Investments Ltd, fintech specialist RD Technologies and crypto exchange-traded fund aspirant Venture Smart Financial Holdings Ltd are in discussions with the Hong Kong Monetary Authority (HKMA) about planned stablecoin trials known as regulatory sandboxes, the people said, asking not to be identified as the talks are private. The HKMA and the Financial Services and the Treasury Bureau last month began a consultation on stablecoin rules and said the sandbox will help convey supervisory expectations. There’s no guarantee the upcoming framework will be finalised by the end of March or that all those seeking to participate in the trials will get the green light, the people said. Stablecoins are typically pegged 1-1 to fiat currencies and backed by reserves of cash and bonds. They make up US$136 billion (RM642.6 billion) of the US$1.7 trillion digital-asset market. The blockchain-based tokens facilitate crypto trading and lending but some commentators argue they have the potential for wider use in payments. Hong Kong stablecoin push attracts one of China’s top fund firms BEIJING (Jan 29): Bank of China Ltd said it plans to sell up to 150 billion yuan (US$21 billion) of loss-absorbing bonds, becoming the nation’s first big state bank to plug a major funding shortfall before a 2025 deadline to meet global capital requirements. The lender said it plans to tap both domestic and overseas debt markets to sell a new category of total loss-absorbing capacity (TLAC) bonds, according to a Friday filing with the Shanghai Stock Exchange. China’s banking regulator in 2022 allowed the nation’s major state-owned banks to issue the TLAC bonds, in a move it said would help prevent any potential instability in its financial system. The loss-absorbing bonds, which are not counted in a bank’s capital base, can be written off, or converted into common equities, when the bank enters the disposal phase. China’s top five lenders — Industrial and Commercial Bank of China, Agricultural Bank of China Ltd, Bank of China, China Construction Bank and Bank of Communications — are designated as global systemically important banks by Chinese regulators and the Switzerland-based Financial Stability Board (FSB). The global systemically important lenders are required to hold a TLAC amount of at least 16% of risk-weighted assets starting Jan 1, 2025, and the bar will be further raised to 18% from Jan 1, 2028. The requirements will add to the Chinese lenders’ capital-raising pressure, said Fitch Ratings in a recent note, especially if the banks are under greater strain to support the Chinese economy, property developers and local government financing vehicles. To meet the requirements, other lenders are also expected to unveil loss-absorbing bond issuance plans soon. The five banks are estimated to issue additional 1.7 trillion yuan debt by 2025 and 6.3 trillion yuan by 2028 to plug capital shortfalls to meet the TLAC requirements, Fitch estimated. (Jan 29): Goldman Sachs lowered its 2024 earnings growth forecast for European STOXX 600 companies to 3% from 7%, citing headwinds from lower oil prices and inflation. Oil prices gained last year amid geopolitical tensions. However, the Wall-Street brokerage anticipates a fall in crude prices this year. Goldman Sachs expects Brent crude prices to average US$81 a barrel in 2024, down from to its previous estimate of US$98. Weaker oil prices would affect the revenue and profit margins of commodity-linked European stocks, Goldman Sachs said in a note dated Friday. Disinflation would pose a challenge to equities, it added. However, lower consumer prices, in ideal economic conditions, could stimulate equities. “If price inflation falls below wage inflation, this adds downward pressure to net income margins,” Goldman Sachs strategists said. The brokerage estimated that lower oil prices would lead to a five percentage-point reduction in annual revenue growth, with net income margins expected to decline by 10 basis points. The European Central Bank (ECB) expects inflation to fluctuate in the 2.5-3% range for much of this year. Policymakers have said any talk of a rate cut before crucial first-quarter wage data, due in May, would be premature. A slew of surveys showed on Friday that eurozone inflation could fall more rapidly than anticipated this year due to sluggish economic growth, bolstering bets for an early start to ECB interest rate cuts. The benchmark index gained more than 12% last year, while the oil and gas sub index posted an annual increase of 3.4%. Bank of China plans US$21 bil bond sales to comply with global capital requirements Goldman Sachs cuts Europe Inc’s 2024 profit growth forecast to 3% Bernama by Roshan Abraham Reuters by Zheping Huang, Annabelle Droulers & Kiuyan Wong Bloomberg reuters
tuesday january 30, 2024 24 The E dge C E O m o rning brief world Reddit advised to target at least US$5 bil valuation in IPO High-flying stocks now face tougher times, UBS strategists say Singapore keeps monetary policy unchanged as inflation slows by Thyagaraju Adinarayan Bloomberg by Xinghui Kok Reuters (Jan 29): Global equities trading near all-time highs are heading for a “difficult phase” as slowing economic growth starts to dent earnings estimates, according to UBS Group AG strategists. Forecasts for significant revenue gains in an environment where growth in gross domestic product is stalling is a “very unusual” mismatch, the strategists, led by Andrew Garthwaite, said in a Monday note. They now expect earnings to disappoint, with profit margins threatened by rising wages and a lagged impact from higher interest rates. Powered by high-flying tech companies, the MSCI World Index of developed-market stocks is just short of an all-time high, driven by expectations of multiple interest rate cuts in a rally that started late last year. “At the moment, the market is behaving as though weak economic data is good (more rate cuts, lower bond yields),” the strategists wrote. “At some point this relationship reverses.” UBS prefers defensive sectors such as consumer staples, pharma and software in this environment. JPMorgan Chase & Co strategists also struck a cautious tone on earnings, especially due to weakness in the euro region. The MSCI All-Country World Index earnings estimates have come down in the past few weeks, with analysts constantly revising estimates lower. What’s more, UBS also sees factors that supported stocks in 2023 fading this year: fewer excess savings in the US and a pull-back in fiscal support measures. It’s earnings estimates are 5% below analysts’ consensus expectations. Garthwaite, who was until recently a global equity strategist at Credit Suisse, prefers emerging market stocks for their relatively better economic prospects, while being the most bearish on Europe. He prefers the UK within Europe for its “abnormally cheap defensive market.” SINGAPORE (Jan 29): Singapore’s central bank on Monday kept its monetary policy settings unchanged, as expected, in its first review of the year as inflation pressures continued to moderate and growth prospects improved. The Monetary Authority of Singapore (MAS) said it will maintain the prevailing rate of appreciation of its exchange rate-based policy band known as the Nominal Effective Exchange Rate, or S$NEER. The width and the level at which the band is centred did not change. “Barring any further global shocks, the Singapore economy is expected to strengthen in 2024, with growth becoming more broadbased. MAS core inflation is likely to remain elevated in the earlier part of the year, but should decline gradually and step down by the fourth quarter, before falling further next year,” the MAS said in a statement. Maybank economist Chua Hak Bin said the central bank is maintaining the current tightening bias as both core and headline inflation gauges are above 3% and historical comfort zones. Core inflation in December was 3.3% year-on-year, slowing from its peak of 5.5% early last year. The MAS said core inflation is projected to ease to an average of 2.5–3.5% for 2024 after rising in the current quarter because of a 1 percentage point sales tax hike from January that the MAS said will have a “transitory impact”. Gross domestic product (GDP) was up 2.8% on a yearly basis in the fourth quarter of last year, according to advance estimates published by the trade ministry in early January. GDP for the full year of 2023 was 1.2%, and the Trade Ministry projects GDP to grow by 1% to 3% in 2024. Reuters bloomberg (Jan 29): Reddit Inc is weighing feedback from early meetings with potential investors in its initial public offering that it should consider a valuation of at least US$5 billion (RM23.65 billion), according to people familiar with the matter, even as it is estimated below that figure in the volatile market for shares of private companies. The San Francisco-based social media company and its advisers are targeting a valuation in the mid-single-digit billions, the people said, asking not to be identified as the information is private. The ultimate figure will depend on the IPO market’s nascent recovery, the people said. Reddit is considering a possible listing as soon as March, the people said. Separately, private trades of Reddit’s unlisted shares have valued the company below US$5 billion. Potential buyers on Rainmaker Securities’ platform have continues on Page 25 by Ryan Gould & Bailey Lipschultz Bloomberg
tuesday january 30, 2024 25 The E dge C E O m o rning brief world Toyota halts shipment of some vehicles over certification issues Kakao investigating financials at K-pop label SM after deal by Yoolim Lee Bloomberg by Daniel Leussink & Chang-Ran Kim Reuters submitted bids indicating a value of between US$4.5 billion and US$4.8 billion. Forge Global Holdings Inc’s database shows a derived price based on secondary activity implying a US$4.8 billion valuation. Such trades sometimes indicate a lower valuation than a company might achieve in an IPO, as private shares are relatively illiquid. Deliberations around the IPO are ongoing and details such as the valuation target and timing are subject to change. A spokesperson for Reddit declined to comment. The valuations under consideration demonstrate the extent of tech’s retreat from the heady days of the private funding boom that peaked in 2021. Reddit raised funds that year at a US$10 billion valuation, and could potentially have been valued as much as US$15 billion in an IPO, Bloomberg News reported in 2022. Instead, the market for first-time share sales froze, tech giants began rounds of lay-offs and the companies that did go public were valued at less than where they raised money privately. Instacart, whose valuation peaked at US$39 billion in March 2021, debuted in September 2023 at a US$9.9 billion valuation. As of last Friday, it has a market value of about US$7.1 billion. Reddit, founded in 2005, became an icon of the so-called meme-stock era after a forum on the site, WallStreetBets, jolted the stock market. The trading frenzy in 2021, driven largely by posts on the site, whipsawed the prices of GameStop Corp and AMC Entertainment Holdings Inc. (Jan 29): South Korea’s Kakao Corp is investigating the financial practices of SM Entertainment Co after it took a controlling stake in the K-pop pioneer, adding another chapter to a drama that has captured the attention of the nation’s business leaders. Kakao, an internet and messaging powerhouse, has hired a law firm to probe SM’s books at the request of Kakao board’s audit committee, according to a person familiar with the situation, who asked not to be identified because the matter is private. Kakao’s inquiry is focused on investments that SM management made after Kakao boosted its holding. SM shares slid as much as 3.9% in Seoul trading on Monday. A representative of SM Entertainment declined to comment. A Kakao spokesman said an audit is being carried out on SM’s accounts, but declined to elaborate further. Kakao fought an intense battle for SM with Hybe Co, the label behind boyband sensation BTS, electrifying South Korea as two of the best-known K-pop labels slugged it out over for control of their destinies. Kakao rode to the rescue of SM’s management after departed SM founder Lee Soo-man sold a 15% stake to Hybe. Kakao and Hybe had both seen ownership of SM as a way to reach a broader audience, and to expand the popularity of Korean entertainment. The bidding war sent SM shares to record highs, and Hybe backed down from its bid in March. Just several months later, though, the Korean authorities arrested Kakao’s chief investment officer for alleged stock price manipulation connected to the bidding war, plunging the company into crisis. They are also probing other potential violations, including excessive listing of affiliates, breach of fair trade rules, and monopolistic practices by Kakao, which has grown from a mobile messenger to one of Korea’s largest business groups by assets. Kakao in December nominated Shina Chung, the former head of its corporate venture-capital arm, as its next chief to lead the firm out of crisis. Kakao has not decided what kind of management changes it will make at SM after its investigation, the person said. While local media had said Kakao would replace SM’s management, Kakao plans to investigate thoroughly, and then follow standard procedures to determine what actions to take. TOKYO (Jan 29): Toyota Motor said it would suspend shipments of some models including the Hilux truck and Land Cruiser 300 SUV after finding irregularities in certification tests for diesel engines developed by affiliate Toyota Industries. A special investigative committee found irregularities during horsepower output testing for the certification of three diesel engine models. Ten models use the affected engines globally, Toyota said, including the Hiace van, Fortuner SUV, Innova multi-purpose vehicle and Lexus-branded LX500D SUV. Toyota, the world’s biggest automaker by sales, has been separately seeking to resolve a case of misconduct related to rigged collision safety tests at small car specialist Daihatsu. The company said it sought to thoroughly explain the matter to authorities and would take measures such as running new engine certification tests in the presence of regulators as needed. “There was a lack of communication with Toyota Motor and not enough coordination about testing processes and procedures that should have been followed,” Toyota Industries president Koichi Ito said at a press conference. Toyota Industries said it sold about 84,000 affected automobile diesel engines during the financial year to March 31, 2023. A Toyota spokesperson could not immediately say how many affected vehicles the automaker had sold over the years. The company said it had re-confirmed that affected engines and vehicles met engine performance output standards. It added the investigation had found that electronic control units used during horsepower output testing were different from those used during engine production. Japan’s transport ministry said it would on Tuesday conduct an on-site investigation of Toyota Industries’ Hekinan plant in central Aichi prefecture where the company makes automotive and industrial engines. Toyota’s investigation initially focused on certification regulations relating to emissions performance of forklift and construction machinery engines, in which the special investigative committee also confirmed misdoing. The company holds a near 25% stake in Toyota Industries, which is a key Toyota group company. The supplier in turn owns about 8% of Toyota shares itself. Shares in Toyota Industries sank into negative territory shortly after the news and ended down 4%. Toyota Motor shares closed 3.1% higher. from Page 24
tuesday january 30, 2024 26 The E dge C E O m o rning brief world OpenAI’s ChatGPT breaches privacy rules, says Italian watchdog MILAN (Jan 29): Italy’s data protection authority has told OpenAI that its artificial intelligence chatbot application ChatGPT breaches data protection rules, the watchdog said on Monday as it presses ahead with an investigation started last year. The authority, known as Garante, is one of the European Union’s most proactive in assessing AI platform compliance with the bloc’s data privacy regime. Last year it banned ChatGPT over alleged breaches of EU privacy rules. The service was subsequently reactivated after OpenAI addressed issues concerning, among other things, the right of users to decline to consent to its use of personal data to train its algorithms. At the time, the regulator said it would continue its investigations. It has since concluded that there are elements indicating one or more potential data privacy violations, it said in a statement without providing further detail. OpenAI did not immediately respond to a request for comment. The Garante on Monday said that Microsoft-backed OpenAI has 30 days to present defence arguments, adding that its investigation would take into account work done by a European task force comprising national privacy watchdogs. — Reuters Japan’s Aeon in exclusive talks to buy Tsuruha stake from Oasis TOKYO (Jan 29): Japanese retail giant Aeon Co Ltd has entered into exclusive talks with Oasis Management to acquire shares the Hong Kong-based activist investor holds in drugstore chain Tsuruha Holdings Inc, it said on Monday. Details of how many shares it will acquire and how much it will pay per share will be subject to negotiations, Aeon said. Oasis and Aeon each have about a 13% holding in Tsuruha. An increase in Aeon’s stake would add to its drugstore business, a key growth driver for the firm, which in the same sector holds 51% of Welcia Holdings and 10% of Kusuri No Aoki Holdings. An Aeon spokesperson said it had notified Tsuruha about its talks with Oasis for a possible stock purchase. The talks are being held without approval from Tsuruha, although that is not required for an acquisition to proceed, the spokesperson added. Tsuruha declined to comment. Oasis could not immediately be reached for comment. — Reuters Russia’s Nornickel forecasts further nickel, palladium output drop this year MOSCOW (Jan 29): Russian metals producer Nornickel on Monday said it that expects a further decline in nickel and palladium output this year, hit by adverse geopolitical risks and postponed furnace repairs, following on from a drop in production in 2023. Chief executive officer Vladimir Potanin said last year that sanctions had constrained Nornickel’s development, though Western governments have refrained from targeting Nornickel directly, in response to the conflict in Ukraine. Nornickel, the world’s largest palladium producer and a major producer of refined nickel, said its nickel production fell 5% year on year to 209,000 metric tonnes in 2023. This year, the company expects nickel output at 184,000-194,000 tonnes. Palladium output dropped by 4% in 2023 to 2.692 million troy ounces, Nornickel said. This year, palladium output is seen at 2.296- 2.451 million troy ounces. The company had expected output for both metals to drop in 2023, but palladium output came in above forecast. — Reuters Indonesia to provide more cash handouts to mitigate risk of rising food prices JAKARTA (Jan 29): Indonesia will provide additional cash handouts for three months covering January, February and March to mitigate the risk of rising food prices, its chief economic minister said on Monday. The government has allocated about 11.25 trillion rupiah (RM3.3 billion) for the programme and the handouts will be given to 18.8 million families, minister Airlangga Hartarto told a press conference. Each family will receive 200,000 rupiah for each of those months. “The programme will last until March. After that, we will evaluate,” Airlangga said. In November 2023, the government extended for six months its rice handout scheme until June 2024, a programme that provides 10kg (22.05 lb) of rice monthly to 22 million lower-income households to help them cope with high prices of the staple. The government also provided a two-month cash handout for millions of household of 400,000 per family for November and December 2023. Indonesia’s inflation was 2.61% at the end of 2023, within the central bank’s target range. — Reuters news In brie f Ex-Grab exec joins Winklevoss twins’ crypto firm Gemini as head of Apac SINGAPORE (Jan 29): Ex-Grab executive Saad Ahmed has joined crypto exchange Gemini as the head of Asia Pacific (Apac), according to a release dated Jan 25. Gemini is owned by the Winklevoss twins, Cameron and Tyler. Ahmed will work to grow Gemini’s user base and introduce its products and services to institutions, while overseeing the region’s profitability and growth. Last June, the crypto firm announced plans to expand to Asia Pacific, amid an increase in regulatory crackdowns in the US. In October, Gemini was sued by a New York attorney general for US$1.1 billion on the basis of fraud. Last week, it secured approval from French regulators to launch its services in France. Gemini’s application for a local licence has been pending with the Monetary Authority of Singapore since 2021. But the firm announced last June that it will increase its headcount in Singapore, which it intends to serve as the hub for its APAC operations, to over 100 in the next 12 months, while also opening an engineering base in India. Ahmed was previously the regional head of commercial and managing director, merchants at Grab, where he was an employee for over five years. Prior to his role at Grab, he was one of the founding team members for Uber in India, and headed business development for the firm in Southeast Asia. — by Nicole Lim/ theedgesingapore.com Saad Ahmed gemini
TUESDAY JANUARY 30, 2024 27 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (Jan 26, 2024) CAPESIZE The capesize market witnessed a mixed and evolving week with notable fluctuations in different regions. The Pacific market started with limited activity and weather disruptions in North China, causing a decline in C5 rates. Projections of additional port closures due to adverse weather conditions added uncertainty. The North Atlantic continued to grapple with a significant shortage of available tonnage, compounded by additional delays in Rotterdam, leading to limited activity, with some operators nominating their own tonnage for their cargoes. A subtle change in sentiment in the Pacific occurred by the middle of the week, with resistance from some owners leading to a slight increase in C5 rates. South Brazil and West Africa experienced fluctuations throughout the week, initially presenting a weaker outlook with a gap between bid and offer prices. However, towards the end of the week, there were reports of a few fixtures concluded at levels above the published C3 index on the day, suggesting a potential positive shift in sentiment. As the week concludes, the Pacific market seems relatively subdued, while the Atlantic exudes a renewed sense of optimism, exemplified by the BCI 5TC climbing by US$410, closing the week at US$17,708. PANAMAX An eventful week for the Panamaxes with the market finding some life in the first half of the week only to ease and flatline as the weekend approached. In the Atlantic, mid-February arrivals in EC South America supplied much of the action. Nicely described 82,000-dwt types were able to secure rates around the US$18,000 mark for second half arrival dates ex South America for trips Far East. Further north, activity was less liquid. In Asia, rates continued to improve ex NoPac with US$12,650 achieved by an 82,000-dwt delivery China for a grain NoPac round trip, the South saw a minor pick up too with Australia and Indonesia seeing marginally better demand and buoyed somewhat by the pickup in South America. A solid week too for the period with various deals concluded as optimism in the market persisted. An 87,000- dwt agreed to US$19,500 basis one year’s trading whilst several deals. ULTRAMAX/SUPRAMAX A slight change in direction for the sector throughout the week with positive sentiment returning in a few areas. In the Atlantic firmer numbers were seen from South America with better levels of activity and a fairly tight tonnage count in place. Despite little fresh fixing being reported the US Gulf seemed to have found a bottom. From Asia, despite limited demand from SE Asia, the market was supported with better demand from the NoPac and a limited supply of fresh tonnage rates remained fairly healthy. Period cover was actively short, with a 58,000-dwt open China rumoured fixed in the mid US$14,000s for one year. Whilst a 61,000-dwt also open China was fixed for five/seven months trading at US$15,500. From the Atlantic, a 63,000-dwt was heard fixed delivery Santos for a trip to Chittagong at US$18,000 plus US$800,000 ballast bonus and a 61,000-dwt also fixed from Santos to SE Asia at US$17,250 plus US$725,000 ballast bonus. In Asia, a 58,000- dwt open North China was fixed for an Australian round redelivery Japan at US$11,000 and a 55,000-dwt also open North China fixed a trip via Indonesia redelivery China at US$9,000. Activity remained in the Indian Ocean, a 58,000-dwt fixing delivery Kandla trip via Arabian Gulf redelivery WC India at US$14,000. HANDYSIZE The Atlantic showed continued signs of positivity. On the Continent a 38,000-dwt open in Amsterdam via the UK to Morocco with an intended cargo of coal at US$16,000 whilst a 37,000-dwt was rumoured to have been fixed basis delivery passing Skaw via the Baltic to Bangladesh with an intended cargo of fertiliser with redelivery in South Africa at US$19,250. Earlier in the week an ice classed 30,000-dwt fixed from Algeria via Kotka to EC South America at US$10,000. In contrast, the US Gulf was said to have limited cargo enquiry and sentiment remained negative for now with a 34,000-dwt fixing from SW Pass with an early February laycan to EC Mexico at US$13,000. In Asia, Charterer’s appetite for period tonnage remained with a 32,000-dwt opening in South China was fixed for a 12-month period at US$10,250, whilst a 32,000-dwt opening in early March was fixed for five months at US$11,000 but further details were unknown on both. CLEAN LR2 LR’s in the MEG have rocketed this week. The 75kt MEG/Japan TC1 index rose almost 115 points to WS353.89 (US$101,134 per day TCE round-trip). The 90kt MEG/UK-Continent TC20 run saw rates significantly improve while Red Sea transits have been met with resistance by most owners and now is being freighted close to US$8.45 million, up almost US$2.8 million on last week’s assessment. In the West of Suez market however, the Mediterranean/East trip on LR2’s (TC15) has seen rates rise in a more measured fashion, climbing US$600k to the US$4.8- 4.9 million level. LR1 In the MEG, LR1 freight levels followed big jump seen on the bigger units. The rate for 55kt MEG/Japan (TC5) climbed 113 points to WS379.38 (a daily TCE of US$76,696 per day round-trip). For the 65kt MEG/UK-Continent (TC8) market, the rate has risen about US$2 million to just over US$6.9 million, with the Red Sea transit undesirable. On the UK-Continent, the 60kt ARA/West Africa (TC16) market rose 24 points to a shade over WS205 (which translates to a round trip daily TCE of US$40,254). Read the full report
TUESDAY JANUARY 30, 2024 28 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) MINETECH RESOURCES BHD 229.10 -0.005 0.150 3.45 266.5 YNH PROPERTY BHD 178.70 0.130 0.845 -80.12 446.6 MALAYSIAN RESOURCES CORP BHD 169.20 -0.005 0.645 44.94 2,881.5 MASTER TEC GROUP BHD 106.80 -0.030 0.360 NULL 367.2 WIDAD GROUP BHD 104.10 -0.010 0.155 -68.04 480.0 FITTERS DIVERSIFIED BHD 83.70 -0.010 0.040 -20.00 93.7 D’NONCE TECHNOLOGY BHD 78.80 -0.020 0.105 -25.00 45.6 BERJAYA LAND BHD 64.00 0.005 0.460 64.29 2,256.3 BINA PURI HOLDINGS BHD 49.70 -0.010 0.070 -17.65 236.2 ADVANCE SYNERGY BHD 48.00 -0.005 0.135 -3.57 341.4 SARAWAK CONSOLIDATED 47.90 -0.035 0.410 -56.15 262.5 KJTS GROUP BHD 46.24 -0.030 0.470 NULL 323.4 LEFORM BHD 44.60 -0.015 0.165 -62.50 244.4 SIME DARBY PROPERTY BHD 44.10 0.015 0.770 23.20 5,236.6 YTL CORP BHD 42.50 -0.070 2.380 25.93 26,095.2 SARAWAK CABLE BHD 39.70 -0.005 0.260 -30.67 103.7 SMTRACK BHD 39.20 0.005 0.055 10.00 67.3 PANDA ECO SYSTEM BHD 35.00 -0.005 0.250 25.00 167.8 TOP GLOVE CORP BHD 34.20 -0.010 0.915 1.67 7,327.5 MY EG SERVICES BHD 33.00 -0.005 0.775 -4.91 5,781.1 Data as compiled on Jan 29, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.010 100.00 230.1 100.00 108.2 AE MULTI HOLDINGS BHD 0.015 50.00 162.0 0.00 32.5 TECHNA-X BHD 0.015 50.00 855.5 0.00 33.2 HONG SENG CONSOLIDATED BHD 0.020 33.33 3,682.6 -20.00 102.2 TALAM TRANSFORM BHD 0.020 33.33 26,109.8 33.33 85.9 ZEN TECH INTERNATIONAL BHD 0.020 33.33 1,292.4 0.00 53.3 SAUDEE GROUP BHD 0.030 20.00 772.7 20.00 46.9 YNH PROPERTY BHD 0.845 18.18 178,710.6 -80.12 446.6 BSL CORP BHD 0.035 16.67 398.7 -22.22 67.6 TWL HOLDINGS BHD 0.040 14.29 30,550.6 33.33 207.0 CHINA OUHUA WINERY HOLDINGS 0.050 11.11 185.8 -9.09 33.4 SAPURA ENERGY BHD 0.050 11.11 3,304.1 11.11 918.8 TCS GROUP HOLDINGS BHD 0.150 11.11 1,721.7 11.11 64.4 I-BHD 0.265 10.42 2,015.8 15.22 492.1 ARB BHD 0.055 10.00 1,495.9 -15.19 68.7 SMTRACK BHD 0.055 10.00 39,228.5 10.00 67.3 MALTON BHD 0.450 9.76 10,550.5 18.42 237.7 NOVA MSC BHD 0.115 9.52 5,225.6 4.55 137.3 AVILLION BHD 0.060 9.09 4,119.7 20.00 68.0 CITRA NUSA HOLDINGS BHD 0.060 9.09 568.0 9.09 43.1 Data as compiled on Jan 29, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) MLABS SYSTEMS BHD 0.010 -33.33 491.2 -33.33 14.5 LAMBO GROUP BHD 0.025 -28.57 701.6 25.00 38.5 FITTERS DIVERSIFIED BHD 0.040 -20.00 83,736.7 -20.00 93.7 XIDELANG HOLDINGS LTD 0.025 -16.67 106.4 0.00 52.9 D’NONCE TECHNOLOGY BHD 0.105 -16.00 78,809.6 -25.00 45.6 KANGER INTERNATIONAL BHD 0.060 -14.29 2,681.9 -7.69 43.9 KEN HOLDINGS BHD 0.570 -14.29 13.0 -11.63 102.2 XOX NETWORKS BHD 0.030 -14.29 75.8 -14.29 34.1 AHMAD ZAKI RESOURCES BHD 0.195 -13.33 4,659.1 -11.36 127.9 BARAKAH OFFSHORE PETROLEUM 0.035 -12.50 5,304.3 0.00 35.1 BINA PURI HOLDINGS BHD 0.070 -12.50 49,720.7 -17.65 236.2 KAMDAR GROUP M BHD 0.160 -11.11 16.6 -15.79 31.7 SEREMBAN ENGINEERING BHD 0.650 -9.09 1.0 -5.80 51.8 SEE HUP CONSOLIDATED BHD 0.920 -8.91 40.0 -8.00 73.1 SMRT HOLDINGS BHD 0.895 -8.67 10,356.3 -16.36 405.4 HSS ENGINEERS BHD 1.070 -8.55 8,059.1 10.31 530.7 JADI IMAGING HOLDINGS BHD 0.055 -8.33 857.6 -21.43 77.0 LEFORM BHD 0.165 -8.33 44,607.7 -62.50 244.4 MALAYAN UNITED INDUSTRIES BHD 0.055 -8.33 683.0 -8.33 177.4 PDZ HOLDINGS BHD 0.055 -8.33 13,763.2 10.00 32.4 Data as compiled on Jan 29, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) MALAYSIAN PACIFIC INDUSTRIES 29.040 -0.760 109.4 2.98 5,776.0 FRASER & NEAVE HOLDINGS BHD 27.520 -0.660 100.1 -1.69 10,093.7 PETRONAS DAGANGAN BHD 21.080 -0.280 178.8 -3.48 20,942.0 APOLLO FOOD HOLDINGS BHD 5.620 -0.140 43.9 -2.43 449.6 HSS ENGINEERS BHD 1.070 -0.100 8,059.1 10.31 530.7 KEN HOLDINGS BHD 0.570 -0.095 13.0 -11.63 102.2 CHIN TECK PLANTATIONS BHD 7.450 -0.090 2.0 -1.45 680.7 GENTING PLANTATIONS BHD 6.310 -0.090 618.9 11.09 5,661.1 KESM INDUSTRIES BHD 6.810 -0.090 5.7 -3.68 292.9 SUNGEI BAGAN RUBBER CO MALAYA 4.860 -0.090 54.4 49.54 321.6 SEE HUP CONSOLIDATED BHD 0.920 -0.090 40.0 -8.00 73.1 SMRT HOLDINGS BHD 0.895 -0.085 10,356.3 -16.36 405.4 ALLIANZ MALAYSIA BHD 19.460 -0.080 7.8 5.53 3,463.3 PBA HOLDINGS BHD 2.260 -0.080 2,761.8 54.79 748.0 VITROX CORP BHD 6.850 -0.080 604.7 -6.04 6,476.1 HARTALEGA HOLDINGS BHD 2.740 -0.070 9,122.4 1.48 9,352.3 HONG LEONG INDUSTRIES BHD 9.250 -0.070 44.7 0.43 2,955.1 IGB BHD 2.310 -0.070 27.2 5.00 3,112.5 KOSSAN RUBBER INDUSTRIES BHD 2.040 -0.070 5,206.4 10.27 5,205.3 LYSAGHT GALVANIZED STEEL BHD 2.410 -0.070 4.1 8.56 100.2 Data as compiled on Jan 29, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) HEINEKEN MALAYSIA BHD 25.900 2.100 548.3 7.29 7,824.3 CARLSBERG BREWERY MALAYSIA 19.300 0.300 106.3 0.10 5,900.9 PPB GROUP BHD 14.720 0.240 366.2 1.66 20,940.7 SIME DARBY PLANTATION BHD 4.520 0.170 3,891.4 1.35 31,259.0 HONG LEONG FINANCIAL GROUP 16.440 0.160 280.0 0.00 18,827.8 BURSA MALAYSIA BHD 7.470 0.150 3,363.8 8.10 6,045.5 KSL HOLDINGS BHD 1.600 0.130 5,281.9 44.14 1,627.5 YNH PROPERTY BHD 0.845 0.130 178,710.6 -80.12 446.6 AMWAY MALAYSIA HOLDINGS BHD 6.640 0.110 23.5 12.93 1,091.5 AXIATA GROUP BHD 2.720 0.110 22,170.2 14.29 24,967.1 PERTAMA DIGITAL BHD 2.610 0.110 7,090.9 0.00 1,143.7 SUNWAY BHD 2.680 0.110 26,776.8 30.10 14,681.0 AYER HOLDINGS BHD 7.100 0.100 15.3 5.19 531.5 KECK SENG MALAYSIA BHD 6.040 0.100 223.5 26.36 2,170.2 NESTLE MALAYSIA BHD 119.300 0.100 45.5 1.45 27,975.9 AFFIN BANK BHD 2.500 0.090 8,490.0 20.19 5,866.2 MALAYAN BANKING BHD 9.230 0.090 9,103.7 3.82 111,316.0 APB RESOURCES BHD 2.050 0.080 332.4 -20.85 227.3 WARISAN TC HOLDINGS BHD 1.090 0.080 46.8 12.37 71.0 APM AUTOMOTIVE HOLDINGS BHD 3.070 0.070 161.7 22.80 600.2 Data as compiled on Jan 29, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,109.43 60.30 0.16 S&P 500 * 4,890.97 -3.19 -0.07 NASDAQ 100 * 17,421.01 -95.98 -0.55 FTSE 100 * 7,635.09 15.12 0.20 AUSTRALIA 7,578.45 23.08 0.31 CHINA 2,883.36 -26.87 -0.92 HONG KONG 16,077.24 125.01 0.78 INDIA 71,941.57 1,240.90 1.76 INDONESIA 7,157.18 20.09 0.28 JAPAN 36,026.94 275.87 0.77 KOREA 2,500.65 22.09 0.89 PHILIPPINES 6,630.68 -55.41 -0.83 SINGAPORE 3,140.31 -19.22 -0.61 TAIWAN 18,119.63 124.60 0.69 THAILAND 1,376.28 8.13 0.59 VIETNAM 1,175.69 0.02 0.00 Data as compiled on Jan 29, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,949.00-68.00 OIL US$ 83.610.06 RM/USD 4.7335 RM/SGD 3.5289 RM/AUD 3.1244 RM/GBP 6.0132 RM/EUR 5.1238
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 TUESDAY JAN 30, 2024 SCAN ME No. 8447 PP 2644/12/2012 (031195) 83% M’sian women, 63% men suffer from gastritis Report on — page 5 Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, who ends his reign as the 16th Yang di-Pertuan Agong today, wants Malaysians to remain united and work together to develop country. Condition often caused by H.pylori bacteria infection, smoking, excessive alcohol intake, ingestion of certain painkillers such as non-steroidal anti-inflammatory drugs as well as stress: Expert Daim charged with failure to declare assets Ex-finance minister Tun Daim Zainuddin pleads not guilty to failing to declare assets to MACC, involving several luxury vehicles, companies and properties in Kuala Lumpur, Selangor, Pahang, Negeri Sembilan, Perak and Kedah. Report on — page 4 - Report on page 2 Robots, drones used in flood mitigation study Skudai rep collaborates with utility services firm to understand and address root causes of flooding at identified hotspots. Report on — page 3 King of our hearts Al-Sultan Abdullah and the Raja Permaisuri Agong Tunku Azizah Aminah Maimunah Iskandariah leaving Istana Negara after a special interview session. – BERNAMAPIC
TUESDAY | JAN 30, 2024 2 Al-Sultan Abdullah calls for strengthening of royal institution KUALA LUMPUR: As the guardian of the country’s democracy since 1957, the institution of the Yang di-Pertuan Agong as the pillar of the nation’s peace and the pulse of unity needs to be maintained and continue to be reinforced, said Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. The King emphasised the significance of fortifying the institution to safeguard the people and the country’s administration in order to fulfil the responsibilities and utilise the powers as enshrined in the Federal Constitution. Al-Sultan Abdullah said the institution serves not only as a symbol of unity in a diverse society but also as a platform of hope for the people to address the challenges confronting the nation. “I believe this institution holds great importance for our nation which is characterised by its multi-racial, multi-religious and diverse ethnic makeup. It is crucial to maintain and uphold this institution for the benefit of the country and the well-being of future generations. “If possible, efforts should be directed towards further strengthening it, not by augmenting individual powers. This emphasis is not about any specific individual, including myself, but rather about the institution itself. “The Agong serves a five-year term, and upon completion, returns to the state,” said the King in an interview with editors and senior journalists of mainstream media at Istana Negara recently in conjunction with the end of his reign. – Bernama Let me be king of your hearts, says outgoing Ruler KUALA LUMPUR: “I may not be the King of Malaysia after January, but if I can be, it’s to be the King of all your hearts.” That is the wish of Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, who will end his reign as the country’s 16th Yang di-Pertuan Agong today. Although he will no longer be the reigning King of Malaysia and will be returning to his home state Pahang as its Sultan, Al-Sultan Abdullah wants the people to remain united and work together to develop Malaysia, Bernama reported. “I hope the people will continue to give their full cooperation to advance and enhance our country’s economy, unite our people across all communities, all levels, and be grateful, continue to be grateful. “I would also like to thank the media (for your cooperation) throughout my time at Istana Negara. I apologise if there were any shortcomings, and I am truly grateful,” the outgoing King said in a special interview with editors and senior journalists of mainstream media at Istana Negara recently. The interview, conducted in a relaxed manner in the presence of the Raja Permaisuri Agong Tunku Azizah Aminah Maimunah Iskandariah, lasted almost two hours. The five-year reign of Al-Sultan Abdullah witnessed a colourful epoch marked by various events, including the Covid-19 pandemic and the change of four prime ministers with different Cabinets, unprecedented in Malaysian history. Despite those numerous challenges, the King was seen to have remained calm, resolving problems delicately with wisdom and much finesse. Sharing his secret of maintaining composure under intense pressure, as well as sorrow over the demise of his father Paduka Ayahanda Sultan Haji Ahmad Shah Al-Musta’in Billah on May 22, 2019, Al-Sultan Abdullah said great leaders at any level must have patience in handling problems, must always engage in self-reflection and make swift decisions. “Alhamdulillah, I have been taught to be patient. We perform prayers and recite a lot of zikr. I’m not saying I’m exceptionally devout, but the practices we’ve maintained over the years bring peace. In truth, if we stick to our practices, we leave everything to Allah. Insya-Allah, hidayah (guidance from Allah) will find its way to us,” the King said. Chance to bid Agong farewell KUALA LUMPUR: The public will have a chance to bid farewell to the King at the send-off ceremony for the 16th Yang di-Pertuan Agong today. Kuala Lumpur police chief Datuk Allaudeen Abdul Majid said the event would be held along Jalan Parlimen up to the Datuk Onn Roundabout. He said the public could park their vehicles at the Perdana Botanical Garden, Padang Merbok, Dataran Merdeka and the multi-storey parking lot at Bukit Aman. “Jalan Parlimen up to Datuk Onn Roundabout will be completely closed as early as 6am for the movement of the farewell team consisting of 3,650 personnel from various ministries,” he told a media conference at the Kuala Lumpur Police Contingent headquarters yesterday. Allaudeen said seven roads in the federal capital would be fully closed and 13 roads would be closed in stages today for Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah’s farewell event. He also said five roads in the capital would be temporarily closed tomorrow in conjunction with the installation ceremony of the 17th Yang di-Pertuan Agong, which will be held at Istana Negara. He added that the roads are Jalan Sultan Abdul Halim, Jalan Kuching, Jalan Tun Razak, Jalan Damansara and Jalan Travers. – Bernama Absurd to suspend funding to UN agency: Ex-MP KUALA LUMPUR: Former Klang DAP MP Charles Santiago said yesterday that “it is beyond preposterous to punish millions of Palestinians who are already living in a catastrophic condition even before investigations began”. Charles was referring to the US, United Kingdom, Italy, Australia, Canada, Finland and the Netherlands that are either reviewing or pulling back funding to the UN Relief and Works Agency (UNRWA) based on allegations that some of its staff were involved in the Oct 7 attacks by Hamas, although the probe into the matter has not been concluded. Meanwhile, UN secretary-general Antonio Guterres called for the donor states not to suspend funding for the agency and that the UN is taking swift action to ascertain the veracity of Israel’s allegations. As the co-chair of the Asean Parliamentarians for Human Rights, Charles said pulling back funds to UNRWA is also o‘Move by several donor nations also goes against recent International Court of Justice ruling’ █ BYJOSHUA PURUSHOTMAN [email protected] against a recent International Court of Justice (ICJ) ruling. The ICJ ruling on Jan 26 ordered six provisional measures, including for Israel to refrain from acts under the Genocide Convention, prevent and punish direct and public incitement to genocide, and take immediate and effective measures to ensure the provision of humanitarian assistance to civilians in Gaza. The court also ordered Israel to preserve evidence of genocide and to submit a report to it within one month of all measures taken in line with its order. Charles said pulling back funds to UNRWA goes against the ICJ ruling, which ordered effective humanitarian aid to Gaza. “These states must be warned that withdrawing funding to UNRWA is tantamount to being complicit in genocide and their acts are punishable under Article 3 (e) of the Genocide Convention. “They are also ‘deliberately’ inflicting on the group conditions of life calculated to bring about their physical destruction in whole or in part.” Charles said the action of the seven states would result in starvation and even more deaths of Palestinians, again pointing to complicity in genocide. He said ironically even states that called for a humanitarian ceasefire, such as Finland, seem to have jumped on the bandwagon. “I vividly remember Israel building what was called the ‘Wall of Apartheid’ in 2002 and justifying it as a necessary security barrier, while the Palestinians said it was an element of segregation.” He said the ICJ ruled in 2003 that the barrier violated international law and should be torn down. “But just like today, there was no consensus among foreign governments to throw their support behind the non-binding ruling, resulting in Palestinian towns becoming isolated from communities and families.” He added that the actions of the supporting states also allowed Israel to further its annexation policy. Charles said it is imminent that governments and nation-states come together not just to condemn the decision to cut off funds to UNRWA but also to ensure that Israel complies with the ICJ ruling. “If we fail to do so now, it will result in further death and destruction in Gaza.” Initiative to address menstruation stigma KUCHING: The Women, Family and Community Development Ministry has collaborated with Kotex Malaysia to address the stigma attached to menstruation, and empower adolescent girls through the Kasih Remaja: Sihat dan Selamat programme and Kotex #SheCan project. Its minister Datuk Seri Nancy Shukri said the three-year initiative aims to reach 600,000 girls, aged between 13 and 17, with comprehensive menstrual hygiene and reproductive health education to break down taboos and foster well-being. “This is not just a matter of hygiene, but of their dignity, confidence and full potential. We also take initiatives to provide male students with knowledge and awareness about menstruation and reproductive health issues. “This is an important step in forming a more empathetic and understanding generation,” she said when launching the programme yesterday. She said based on the report “Study on the Status of Menstruation Management among Female Secondary School Students”, a total of 9.9% of 130,000 female students nationwide have problems obtaining menstrual management products. – Bernama Nancy with Kimberly Clark Malaysia managing director Lim Yu Chien and National Population and Family Development Board chairman Datuk Seri Rohani Karim at the launch of the programme in Kuching yesterday. – BERNAMAPIC
TUESDAY | JAN 30, 2024 3 Flood mitigation programme initiated for Skudai area oState rep working with specialist firm to identify causes and formulate measures to safeguard community PETALING JAYA: In a proactive response to the ongoing floods in Skudai, Johor, its state assemblywoman Marina Ibrahim has collaborated with AL Pine Utility Services Sdn Bhd to mitigate the problem through cutting-edge research, and using water robots and drones to collect precise data on flood-prone areas. “Collaborating with the company effectively helps us to mitigate flood incidents. With this ongoing collaboration that started in December, we aim to thoroughly understand and address the root causes of flooding in identified hotspots. “Beyond mere donations, the company has contributed highpressure water guns and essential supplies to assist in flood relief efforts,” she said. Marina also highlighted a commitment to collecting data related to flood incidents “as this will help us to formulate more effective flood management solutions”. She expressed concern for the residents and authorities grappling with the annual floods, that are attributed to the northeast monsoon bringing heavy rain from November to March. “The increased number of flood evacuees serves as a poignant reminder of the vulnerability of the area to seasonal weather patterns and underscores the need for proactive measures to safeguard the community against future incidents. “Areas in front of Skudai Parade were severely affected due to clogged drains, that were filled with sediment and debris. Addressing flooding issues in Kampung Laut, Kampung Poh Chee Leng, Kampung SK and areas surrounding Skudai Parade is On having a more efficient approach to addressing floods, Marina said monitoring contractors is essential to addressing its root causes and ensuring the timely and effective implementation of mitigation measures. She said the floods serve as a wake-up call for the authorities to advocate for proactive measures in the face of seasonal challenges. In recognising the interconnected nature of drainage systems, she warned that incorrect water diversion could worsen flooding issues, and emphasised the need for a comprehensive approach to flood management. “To address the funding challenges faced by flood control projects, the city council made requests to the Department of Irrigation and Drainage, which allocated resources for specific requests, such as sandbags at Jalan Zapin 3, removal of garbage and repairs to damaged water level alarms,” she said. While acknowledging the progress that has been made to mitigate the floods, Marina emphasised that more needs to be done to overcome the flooding problem in Skudai. Highlighting an inclusive decisionmaking process, she stressed the importance of considering opinions and requests from residents. “Engaging with stakeholders ensures that proposed solutions are not only reasonable and feasible but aligned with the community’s needs.” She said in the collaboration with AL Pine Utility, the focus was on sustainable, data-driven solutions, adding that she is committed to the continuous improvement of flood mitigation projects and community welfare. M’sian gaming firm receives world-class recognition KUALA LUMPUR: The World Lottery Association (WLA) has granted STM Lottery Sdn Bhd Level 3 recognition in the Responsible Gaming Framework (RGF), on the recommendation of its Independent Assessment Panel. STM Lottery general manager (Administration and Logistics) Tung Kai Shek said the recognition underscores its unwavering commitment to promoting responsible gaming practices and ensuring the highest standards of player protection. “The WLA RGF is a comprehensive set of guidelines designed to assess and enhance the responsible gaming initiatives of lottery organisations worldwide. “To achieve Level 3 accreditation, we enhanced our efforts to promote responsible gaming. For instance, we launched a series of player education and awareness campaigns based on the seven responsible gaming principles developed by WLA. We also incorporated measures for our customers to test, detect and address signs of problem gaming.“ Tung said STM Lottery actively trains its employees to be equipped with responsible gaming knowledge to offer assistance to its customers who may need help in addressing problems with gaming issues. The company also collaborates with industry regulators, community organisations and other stakeholders to promote responsible gaming on a broader scale. WLA RGF Independent Assessment Panel chairperson Anne Pattberg said: “STM Lottery provided a concise, well-organised and structured application. All elements are addressed in a pertinent and comprehensive way.” Tung said the company is proud to stand alongside other industry leaders in achieving Level 3 recognition, and that the accomplishment reflects its ongoing efforts to prioritise its players’ well-being and maintain the highest standards of integrity in its operations. “We understand the importance of promoting responsible gaming as an integral part of our corporate social responsibility. We believe that by adhering to the RGF, we will contribute to the overall sustainability and credibility of the industry. “We thank WLA for their rigorous evaluation and acknowledgement of our commitment to responsible gaming as we strive to create a safe and fun gaming experience for all.“ STM Lottery is the largest Number Forecast Operator that offers four Sports Toto digit games, a Jackpot-type game and three Lotto games in Malaysia. For more information about STM Lottery’s responsible gaming initiatives, please visit www.sportstoto.com.my and its Instagram profile at www.instagram.com/toto4green. Penang water supply disruption postponed GEORGE TOWN: The Penang Water Supply Corporation announced that the scheduled water supply disruption that was to begin yesterday for diversion of a pipeline, has been postponed to 11.30pm today. It said the matter was decided after taking into account requests of consumers in the affected areas. “We plan to provide at least 24 hours so that all 120,000 (affected) consumers have sufficient time to store enough water before implementing the scheduled water disruption.” The corporation previously said the disruption involved 120,000 accounts in Penang’s Southwest district, adding that the disruption was due to a large leak in a 1,350mm pipeline at the bottom of Sungai Perai. It explained that although works have been done since last Friday, the pipe was still leaking and is at risk of leaking again, necessitating diversion works are carried out to replace it. As of 6.30pm on Sunday, water supply had resumed to a total of 109,000 of the 120,000 affected consumers, Bernama reported. The leaking pipe at the bottom of Sungai Perai was the third such incident after another two in December last year and on Jan 12. FESTIVE SHOT ... Tourists visiting the Thean Hou Temple in Kuala Lumpur taking a photo among elaborate decorations put up in conjunction with Chinese New Year next month. – AMIRUL SYAFIQ/THESUN █ BYSIVANISVARRY MORHAN [email protected] █ BYJOSHUA PURUSHOTMAN [email protected] Symposium findings to be used for congress PUTRAJAYA: The results of an engagement session and the Bumiputera Agenda Steering Unit Aspiration Symposium held yesterday need to be used to prepare for the organisation of the Bumiputera Economic Congress 2024, said Economy Minister Rafizi Ramli. He said it could be used to draw up a short and long-term plan for the fiveday congress, starting Feb 29. “I was informed that the symposium is the first organised by steering unit and will be held annually. “I think it is a good step and should be continued because it is a very good space to discuss the studies that have been carried out and obtain the necessary resolutions for the future,” he said during the launch of the symposium yesterday. His speech was read by Economy Ministry secretary-general Datuk Nor Azmie Diron. – Bernama Labu rep appointed Bersatu chief SEREMBAN: Labu assemblyman Mohamad Hanifah Abu Baker has been appointed Negeri Sembilan Bersatu chief and Perikatan Nasional (PN) chairman with immediate effect. He takes over from Datuk Seri Ahmad Faizal Azumu. Ahmad Faizal, who is Bersatu deputy president, said the decision on the appointment was made at a meeting of the Bersatu Supreme Leadership Council in Kuala Lumpur on Sunday. “I believe the Bersatu divisions will cooperate well with Mohamad Hanifah in strengthening the party. Bersatu and PN must play a role as an authoritative opposition,“ he said. – Bernama particularly challenging.” Marina said as of noon on Jan 25, the National Disaster Management Agency revealed that the number of flood evacuees had surged to 3,937, which was an increase from the 2,912 recorded just 12 hours earlier. She said floods occur every monsoon season in many states, adding that the authorities cannot keep using the excuse that it is because of climate change. “The flooding also reminds us of the need for a strong system to oversee and improve ongoing drainage and flood control projects.”
TUESDAY | JAN 30, 2024 4 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Fire Dept to monitor hotspots during dry season PUTRAJAYA: The Fire and Rescue Department will focus on more than 400 hotspots across the country during the dry season, that is expected to start next month. Its director-general Datuk Nor Hisham Mohamad said the focus would be on peatland areas, illegal waste disposal sites and landfills owned and operated by local authorities. “The most worrying are peatland fires, especially in Selangor, Pahang, Johor, Sabah and Sarawak, so we will focus on hotspot locations which have been identified,” he said at a press conference after attending the annual parade at the department headquarters yesterday. He said the dry weather this year is expected to be worse than the previous three years, and urged the public to alert the department immediately if they have any information on irresponsible parties starting fires. “We monitor it as well but the most important and effective detection is the (public), to provide information on the location and condition of the fire to enable us to act swiftly and better,” he said. In his first message after leading the department since Jan 9, Nor Hisham said the department is targeting 300 community fire brigades and seven new volunteer fire brigades to be established this year. Apart from that, the department will continue to adopt digitalisation more aggressively with the implementation of two high-impact projects this year involving the modernisation of the Command, Control Communications, Computers and Intelligence control centres and the ePREMIS integrated system. He added that the implementation of the ePREMIS system, which integrates all the core service functions in the Fire Safety Division, facilitates access to services that include applications for Fire Safety Installation Certificates and Fire Safety Certificates by eliminating the bureaucracy of the face-to-face process that exists in the delivery of existing services. – Bernama RM13m for six S’gor education initiatives SHAH ALAM: The Selangor government has allocated almost RM13 million to ensure the success of six education initiatives, including the Selangor People’s Tutoring Programme (PTRS) this year. Deputy State Secretary (Management) Mohamad Zahri Samingon said the allocation was part of the state government’s efforts to empower education programmes, apart from meeting future requirements. “For this year, we have allocated RM10 million for the programme, of which RM7 million was donated by Menteri Besar Selangor Incorporated, followed by RM1 million each for the repair of school infrastructure and free internet service. “Apart from that, the state government also provided RM500,000 to be distributed to parents and teachers’ associations and RM150,000 for the purchase of laptops and iPads to be distributed to selected schools. “This year, the contribution of the National Education Savings Scheme will continue with an allocation of RM200,000, specifically for asnaf students,” he said after officiating at the state-level Tekad Pendidikan #KitaSelangor: STEM Exploration Carnival at the Shah Alam Convention Centre yesterday. – Bernama Gastritis cases prolific, yet preventable PETALING JAYA: Some 83% of women and 63% of men in the country experience gastritis, causing concern among medical professionals about its prevalence, although it is a preventable ailment. Consultant general and colorectal surgeon Dr Mohd Zailani Mat Hassan said gastritis typically develops in women between the ages of 45 and 64, while men tend to experience it around the age of 64. But it can still occur at any age, including in children as young as four. “Those with certain medical conditions like diabetes and hypertension are also more likely to get gastritis,” he said, adding that in most cases, gastritis is often caused by an infection of the stomach lining by the Helicobacter pylori (H. pylori) bacteria, which can lead to various digestive problems. “Gastritis can also be caused by smoking, excessive alcohol intake or ingestion of certain painkillers such as nonsteroidal antioHealthy diet, consistent meal timing and lifestyle changes could avert painful affects of ailment: Experts █ BYQIRANA NABILLA MOHD RASHIDI [email protected] Protection from superstitions, black magic KANGAR: A strong belief in Tawhid (belief in the oneness of Allah) plays a role as an antidote in the context of superstitions and black magic, said the Raja Muda of Perlis Tuanku Syed Faizuddin Putra Jamalullail. He said Tawhid not only strengthens individual faith but also protects Muslims from the harmful effects of superstitions and black magic which lead to deviations from the true path of Islam. “Therefore, Muslims who truly understand and have faith will not be exposed to superstitions or resort to black magic as a solution to their problems. “With a strong belief in Tawhid, individuals are encouraged to place their trust and reliance solely in Allah, seek His help through sincere prayers and adhere to His guidance,” he said while closing the Perlis International Sunnah Convention 2024 at Dewan 2020 on Sunday. – Bernama More than 3,900 dengue fever cases recorded PUTRAJAYA: The number of dengue fever cases increased to 3,971 cases in the 3rd epidemiological week (ME03) from Jan 14 to Jan 20, compared with 3,525 cases reported the previous week. Health Director-General Datuk Dr Muhammad Radzi Abu Hassan said no deaths due to dengue fever complications were reported during the period. On the number of hotspots, he said it has dropped to 127 compared with 136 the previous week, with the highest number recorded in Selangor with 105 localities, followed by the Federal Territory of Kuala Lumpur and Putrajaya with 13, Perak with three and Negeri Sembilan with two. For chikungunya surveillance, Muhammad Radzi said there was one case recorded in ME03, with the cumulative number of cases to date being two cases, while no chikungunya outbreak was reported. “For Zika surveillance, a total of 97 blood samples were screened and the results were all negative,” he said in a media statement yesterday. – Bernama PICTURE PERFECT ... A visitor taking a selfie at the JIOSPACE PJ Photography Awards Exhibition, that aims to promote the vibrant life and culture of Petaling Jaya. – ADIB RAWI YAHYA/THESUN inflammatory drugs. “Stress is also a potential cause of gastritis as it affects the digestive system by influencing stomach acid production and the integrity of the stomach lining.” Mohd Zailani said during times of stress, the brain releases specific hormones that reduce blood flow to the stomach and decrease the self-renewing cells of the stomach lining. Stress hormones may also disrupt the acid equilibrium within the stomach, compromising their self-defence mechanisms. He said while gastritis may not be inherently deadly, it can mimic other symptoms such as breathing difficulty and heart disease, potentially contributing to fatal outcomes. “In one case in 2022, an individual died after suffering complications arising from gastritis. His symptoms included stomach pain, nausea, occasional vomiting and at times, abdominal fullness or bloating, which caused breathing difficulty. “The combination of symptoms was a contributing factor to his demise.” Mohd Zailani also said other complications such as bleeding from gastric ulcers and perforation of the ulcer itself carry a significant risk of mortality, especially among older patients. “The mortality rate linked to bleeding gastric ulcers is approximately 5%, while perforated gastric ulcers have a mortality rate of around 4%.” He said individuals suffering from gastritis need to make significant changes in their lifestyle patterns and dietary habits to alleviate the symptoms. Dietitian Koh Nyat Syen said those prone to gastritis should prioritise consistent meal timings to minimise experiencing discomfort. “Our body produces stomach acid when we are hungry and it will often follow habitual meal timings. Skipping meals can worsen gastric pain as the stomach acid may further irritate an inflamed stomach lining.” She said those suffering from gastritis should avoid spicy food, excessive intake of caffeinated drinks and food containing citrus ingredients. “Some laboratory studies have shown that probiotics in fermented food, such as fermented kimchi, can help suppress the H. pylori bacterium and reduce inflammation. “However, some fermented foods can be quite acidic and worsen gastric pain in some chronic cases, so it is important to work closely with healthcare professionals to get the best treatment.” Koh added that society should play a role in spreading awareness through various channels and fostering healthy eating habits by promoting digestive health. “Social media platforms can provide helpful information on nutrition and health. Patients could also seek help from any dietitian, who can guide and help manage dietary concerns about related illnesses as well as provide helpful resources.”
TUESDAY | JAN 30, 2024 5 Ex-minister charged over failure to declare assets oDaim claims trial to charges involving 38 firms, seven luxury vehicles and 25 condominium units in six states KUALA LUMPUR: Former finance minister Tun Daim Zainuddin was charged in the Sessions Court yesterday with failure to declare his assets, which include several luxury vehicles, companies and properties in Kuala Lumpur, Selangor, Pahang, Negeri Sembilan, Perak and Kedah. Daim, 85, seated in a wheelchair placed next to the dock, pleaded not guilty to the charge before Judge Azura Alwi. “I understand the charge, plead not guilty and claim trial,” he said. He failed to declare his assets by deliberately giving a written statement under oath that did not comply with the terms of a notice, dated Nov 8, 2023, which required him to declare his assets, Bernama reported. The notice was sent to him by The list of companies also include Reliance E-Com Sdn Bhd, Admiral Marina Bhd, Golden Envoy (M) Sdn Bhd, Mela Lifestyle Sdn Bhd, AVI SPA Sdn Bhd, Avillion Hotel Group Sdn Bhd, RPB Capital Holdings Sdn Bhd, Genius Field Sdn Bhd, Festive Place Sdn Bhd, Avillion Suite Hotel (PD) Sdn Bhd, Taman Unik Sdn Bhd, Admiral Cove Development Sdn Bhd, Nesline Sdn Bhd, RPB Development Sdn Bhd, OS Resources Sdn Bhd, Avillion Hotel (KL) Sdn Bhd, Avillion Hotels International Sdn Bhd, Admiral Hill Hotel Sdn Bhd and Reliance Shipping & Travel Agencies (Perak) Sdn Bhd. The properties comprise 25 condominium units, houses and hotels in Kuala Lumpur, Selangor, Pahang, Negeri Sembilan and Kedah. On Jan 23, Daim’s wife, Toh Puan Na’imah Abdul Khalid, 66, was charged in the same Sessions Court with failure to declare her properties, namely Menara Ilham and several properties in Kuala Lumpur and Penang. MACC said the probe into Daim’s case was based on information obtained from the Pandora Papers, which disclosed records of wealthy and influential individuals hiding their wealth through offshore services or companies outside of their countries. Court sets aside gag order on local movie producer KUALA LUMPUR: The High Court had set aside a gag order yesterday imposed on Mentega Terbang film producer Tan Meng Kheng, prohibiting him from making any statement or comment regarding his ongoing case. Judge Datuk Muhammad Jamil Hussin said the prosecution, as the respondent, had failed to disclose that there was a real and substantial risk to the fairness of the trial. “The proceedings before the Magistrate’s Court did not disclose any obvious or imminent threat to the fairness of the trial. There is no material before the court to show that there is a real and substantial risk to the fairness of the trial. Therefore, the gag order issued by the magistrate was not proper and the gag order is hereby set aside,” said Muhammad Jamil. DPP Nor Azizah Aling and Nadia Mohd Izhar represented the respondent while lawyer N. Surendran acted for Tan as the applicant. Tan filed the application for review on Jan 18 and sought to challenge the gag order issued by the Magistrate’s Court on grounds that the ban is illegal and restricts freedom of speech. On Jan 17, film director Mohd Khairianwar, 32, and Tan, 36, were charged in two separate Magistrate’s Courts with hurting religious sensitivities of others through the film last year. They were charged with intentionally hurting religious sensitivities of others by uttering words and placing objects within the hearing and sight of people at a premises in Jalan Semarak Api on Feb 26, 2023. Mohd Khairianwar and Tan were charged under Section 298 of the Penal Code and were allowed bail RM6,000 and RM6,500 respectively, in one surety each. They were required to report to the nearest police station until the completion of the trial. The magistrate also allowed the prosecution’s request for a gag order, on Mohd Khairianwar and Tan. The Home Ministry ban on the movie follows the Government Gazette P.U (A) 2662 Film Censorship Act 2002, the Film Censorship (Prohibition) Order 2023, dated Aug 21, 2023. The film, broadcast on a video streaming platform, faced public backlash and anger due to purportedly depicting scenes involving conflicting religious beliefs and elements. – Bernama Appeal against DPM acquittal pending PUTRAJAYA: The Attorney-General’s Chambers (AGC) has yet to decide on Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s representation for the prosecution to drop its appeal against his acquittal of 40 charges of corruption, in connection with a foreign visa system contract. DPP Abdul Malik Ayob informed the matter to the Court of Appeal, chaired by Justice Datuk Hadhariah Syed Ismail, during the case management yesterday. Hadhariah then maintained March 18, which had been set earlier, for hearing the prosecution’s appeal. Ahmad Zahid submitted the representation to the AGC in January last year. The Shah Alam High Court on Sept 23 2022, acquitted and discharged Ahmad Zahid of all the charges after ruling that the prosecution had not made out a prima facie case against him. The prosecution then filed its appeal to the Court of Appeal. The Umno president had pleaded not guilty to 33 counts of receiving bribes, amounting to S$13.56 million, from Ultra Kirana Sdn Bhd to extend the contract of the company as the operator of a one-stop centre service in China and the foreign visa system, as well as to maintain its contract with the Home Ministry to supply the foreign visa integrated system. Ahmad Zahid was also charged for allegedly obtaining cash of S$1,150,000, RM3 million, 15,000 Swiss francs and US$15,000 from the same company, which had connections to his official functions. – Bernama Daim surrounded by media crew after proceedings at the Kuala Lumpur Court Complex yesterday. – BERNAMAPIC Diesel smuggling syndicate busted ALOR SETAR: The Domestic Trade and Cost of Living Ministry had managed to bust a diesel smuggling syndicate after detaining a lorry in Sungai Petani on Sunday. The ministry’s state director Affendi Rajini Kanth said enforcement officers had observed the smugglers buying diesel repeatedly at several petrol stations around Sungai Petani during their operation. He said they discovered the smugglers purchased RM200 worth of diesel at the first station, RM150 at the second and third station before they were stopped. “Checks revealed two 1,000-litre capacity tanks connected to two pumps and fuel hoses. The pumps were installed to siphon out fuel from the original tank into the additional tanks and the total amount of fuel confiscated was 232 litres, worth RM500,” he said, adding that the lorry, pumps, hoses and tanks, worth an estimated RM16,500, were also confiscated. “The male driver, in his 40s, was arrested and remanded for investigation under the Control of Supplies Act 1961.” – Bernama Police seek couple in ‘summons settling’ case IPOH: Police are looking for a British couple to help in the investigation into a case of a traffic policeman allegedly issuing a summons and offering to settle it on the spot. State police chief Datuk Seri Mohd Yusri Hassan Basri said it was understood the couple are currently in a neighbouring country. He said police were also identifying the traffic policeman involved, as well as the location, time and date of the incident, adding that the case was being investigated by the Bukit Aman police headquarters. The video, which had circulated on social media, showed the policeman offering the couple a chance to pay a specific amount to settle their summons on the spot. – Bernama a commissioner from the Malaysian Anti-Corruption Commission (MACC) on Nov 14, 2023, and the offence was allegedly committed at the MACC Headquarters in Putrajaya on Dec 13, 2023. The charge was framed under Section 36 (2) of the MACC Act 2009, which provides a maximum five years’ jail and a fine of up to RM100,000. The assets comprise Amanah Saham Nasional Berhad and Amanah Saham Nasional bank accounts, and seven luxury vehicles, including one Rolls Royce Royce 2 Axle Rigid Body, three Mercedes Benz, one Jaguar XJS HE, one Austin Morris and Ford Prefect. The assets also involve 38 companies, namely Ibu Kota Developments Sdn Bhd, Maya Seni Holdings Sdn Bhd, Menara Ampang Sdn Bhd, Dream Cruiser Sdn Bhd, Landbelt Corporation Sdn Bhd, Kenari Teliti Sdn Bhd, Fnq Advanced Materials Sdn Bhd, Kota Tandop Development Sdn Bhd, Alun-Alun Resort (M) Sdn Bhd, Dasar Seroja Sdn Bhd, Gigantic Promotions Sdn Bhd, Jupiter Alliance Sdn Bhd, Inayat Realty Sdn Bhd, Suasa Urus Sdn Bhd, Avillion Bhd, Meridian Haven Sdn Bhd, Avillion Vista Hotel Sdn Bhd, Vast Access Sdn Bhd and Fortune Valley Sdn Bhd.
TUESDAY | JAN 30, 2024 6 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ Move to centralise preschool education lauded performance,” he said. On Jan 22, Prime Minister Datuk Seri Anwar Ibrahim emphasised the need to review the preschool education system, ensuring it receives additional facilities to improve the learning process. He observed that Malaysia lags in providing facilities to preschools, including digitalisation. Rais said the government should look into restoring educational equity via the quality of educators at all levels, especially at the preschool and primary level, as a student’s success depends primarily on the teachers they meet on their academic voyage. “Teaching cannot be simply subcontracted to those who could not find placement elsewhere in the industry. “Among the top education nations, at least a Master’s degree is a common requirement for a teacher in a school at all levels to bring more science to pedagogical practice. However, more often, they hold dual PhDs, one in education and one in their respective teaching fields. “For example in Finland, becoming a teacher is more challenging than becoming a medical doctor. Germany, Japan, the Netherlands, Singapore and Switzerland are a few other countries where pedagogy is as serious a field as medicine or law,” he said. Meanwhile, Universiti Kebangsaan Malaysia Centre of Education and Diversity Faculty of Education senior lecturer Dr Anuar Ahmad said preschool institutions in the country, managed by various government and private entities, are perceived as disorganised and need to be strengthened. “When we coordinate it, we will clearly see where the need is to help our children in rural areas, children from poor families and so on. Right now, we lack clarity, and this coordination will result in more efficient use of teacher manpower and allocations. “This would make the utilisation of funds more effective, not necessarily in savings, but more efficient and it would also standardise human resources.” Rais suggested the government consider several changes to restore education equity, such as subsidising early education. – MASRY CHE ANI/THE SUN oFocus should be on reform of performance-based classification policies, say experts Increased cash aid to B40 brings relief KUALA LUMPUR: What is the value of RM100? For some, it does not mean much. Still, for those in the B40 group, RM100 is a lot, especially in making ends meet with the current high cost of living. Single mother Norfizah Abu Samah, 56, felt a huge relief with the government’s announcement on the increase to RM1,200 in the payment of the Sumbangan Asas Rahmah (Sara) cash aid for poor and hardcore poor households, with recipients to receive RM100 every month for a year. She said the cash aid not only helped her with the household expenses but also in looking after her 98-year-old mother. “I am very satisfied because with the money, I can buy rice, cooking oil, sugar, milk and biscuits, and if there is some left, I could buy laundry detergent,” said Norfizah, who needs between RM250 to RM300 a month for household expenses. The increase in the Sara payment, from RM600 previously, highlights the government’s commitment in dealing with the wealth gap and building an inclusive society. Universiti Malaya Faculty of Business and Economics senior lecturer Dr Roza Hazli Zakaria said the increase would boost the purchasing power of lowincome households and reduce social problems caused by poverty. “The additional income would be spent to buy necessities, which they may not be able to afford without this aid, and this indirectly increases the purchasing power of the people. “In the context of low-income households, the increase in the cost of living will put pressure on them, and this can also cause many social problems such as school dropouts, lack of nutritious food for children, domestic conflict and even the possibility of an increase in crime rate.” However, she is of the opinion that cash assistance is not a sustainable solution for the long term. “Improving the ability of the group to improve their standard of living without relying solely on cash assistance is very necessary,” she said. – Bernama KUALA LUMPUR: The government move to centralise all preschool education systems under the Education Ministry has been lauded by academicians, who believe the initiative would have a profound impact on the education landscape. Founder of think-tank Emir Research Dr Rais Hussin said the step must be part of broader and immediate reforms aimed at transforming the entire education ecosystem, in line with global best practices. He suggested the government consider several changes in policies to restore muchneeded education equity in the country, such as subsidising early education, as implemented in Canada, Denmark, Finland, Germany and New Zealand. In highlighting the need for sweeping changes, Rais recommended re-evaluating policies on school selection and class tracking based on performance, Bernama reported. He said such practices contribute to socioeconomic disparities, urging a shift similar to education systems in countries such as Belgium, Japan, the Netherlands, Norway and Singapore. “Leading nations either eliminate or considerably postpone the selection process for different schools, classes or tracks within a school based on performance and/or individual subjects. “With abundant empirical evidence, it is evident that these segregation practices disadvantage students from lower socioeconomic backgrounds, contributing to the perpetuation and intensification of regional, social and gender inequality. “Conversely, deferring or eliminating such segregation has been found to at the very least, not negatively impact overall
TUESDAY | JAN 30, 2024 7 Myanmar senior official attends Asean meet LUANG PRABANG: A senior Myanmar official met the Association of Southeast Asian Nations (Asean) foreign ministers in Laos yesterday, the junta-ruled country’s first representative to attend a high-level meeting of the regional bloc in more than two years. The Myanmar military seized power in a coup in February 2021, and in October that year Asean barred junta leaders from its summits and ministerial meetings, inviting the country to send “non-political” representatives instead. Up to now Myanmar has refused, but a senior foreign ministry bureaucrat Marlar Than Htike is attending a foreign ministers’ “retreat” in Luang Prabang, Laos. The meeting comes just three days before the three-year anniversary of the coup, with the junta facing their most serious threat to power yet, as a coalition of armed ethnic groups make significant gains in the north. Arriving at the opening ceremony, Marlar Than Htike refused to answer reporters’ questions about Myanmar’s presence at the meeting. Earlier, she was seen talking with Thai Foreign Minister Parnpree Bahiddha-Nukara and East Timor counterpart Bendito dos Santos Freitas. Laos has the chair of Asean for the first time since 2016, with all eyes on whether the small nation can move the needle on the long-running issue of Myanmar. Asean’s diplomatic efforts to resolve the crisis have been repeatedly stymied, with little progress made since 2021 when the bloc agreed on a five-point peace plan. Although last year’s chair Indonesia hailed “positive” talks with the main sides in November, the junta was represented by “interlocutors”, according to a statement at the time. However, friction between Asean members escalated over the former Thai government’s decision last year to meet junta foreign minister Than Shwe. The kingdom shares a long border with Myanmar. Earlier this month junta leader Min Aung Hlaing met with the Laotian special envoy of Asean, Alounkeo Kittikhoun, in the capital Naypyidaw. Myanmar state media reported at the time that the two discussed “efforts of the government to ensure peace and stability”. – AFP Youths prioritise green issues in polls, says foundation JAKARTA: As the 2024 Indonesia elections approach, young voters, comprising Millennials and Gen Z, prioritise environmental conservation when selecting candidates, said WWF Indonesia Foundation. The foundation CEO Aditya Bayunanda disclosed that 97% of young voters would consider supporting candidates committed to environmental preservation. “Based on survey in early Dec 2023, 75% claimed awareness of environmental aspects in candidates’ visions, while 36% admitted a lack of understanding,” he said. The survey, encompassing 1,365 respondents aged between 17 and 30, mirrors the youth’s perspective, with 54% of the 204 million voters in the Feb 14 election being Millennials and Gen Zs. Teaming up with research firm Populix, the survey showed that 85% are impacted by environmental issues, including climate change, such as floods, high temperatures, and droughts. About 72% recognised the effects of waste and pollution, experiencing problems like respiratory issues due to air quality decline (68%), a decrease in water quality (53%), and 43% detecting damage to forest or marine ecosystems, Aditya added. Indonesia, the world’s third-largest democracy, is gearing up for its general election where voters will decide the president, vice-president, members of People’s Consultative Assembly – comprising the House of Representatives and the Regional Representative Council – and members of local legislative bodies. In the presidential race, Anies Baswedan is partnering with vice-president candidate Muhaimin Iskandar, Prabowo Subianto is running with Gibran Rakabuming Raka, and Ganjar Pranowo, the ruling party’s presidential candidate, teams up with Mahfud MD. During last week’s vice-presidential debate, Muhaimin emphasised fair environmental ethics, Gibran highlighted the duty to maintain natural balance, and Mahfud focused on natural resource management. – Bernama Manila aims to strengthen marine ties with Vietnam MANILA: Philippine President Ferdinand Marcos Jr yesterday said talks on maritime cooperation between his country and Vietnam would be one of the cornerstones forged in a strategic partnership with its Southeast Asian neighbour. oMarcos expects to meet Hanoi top officials during two-day visit to promote peace, stability in region BURST OF COLOUR ... Red lanterns being produced for the upcoming Lunar New Year celebrations in Huai’an in China’s eastern Jiangsu province. – AFPPIC B R I E F SKIM HAILS TEST LAUNCH OF SUBMARINE MISSILES SEOUL: North Korean leader Kim Jong Un has hailed the test launch of a new strategic cruise missile from a submarine as a key moment in building the nation’s naval power, state media said yesterday. Pyongyang has accelerated weapons testing in the new year, including tests of what it called an “underwater nuclear weapon system” and a solid-fuelled hypersonic ballistic missile. Kim expressed “great satisfaction” over Sunday’s test, state-run news agency KCNA said, “which is of strategic significance in carrying out the plan for modernising the army which aims at building a powerful naval force”. The North Korean leader separately inspected “the building of a nuclear submarine” and discussed issues related to the construction of other new warships, the report added without giving details. – AFP NANOSAT MISSION A SUCCESS, SAYS S. KOREA SEOUL: South Korean space start-up, Nara Space Inc, said yesterday its nanosatellite, Observer-1A, has successfully conducted a mission for earth observation by capturing photos of major cities, including Busan and Dubai, reported the Yonhap news agency. Observer-1A, South Korea’s first commercial nanosatellite, was launched aboard a SpaceX Falcon 9 rocket from the Vandenberg Space Force Base in California in November and successfully entered earth’s orbit. The microsatellite, 20cm in width and 40cm in height, was tasked to capture its first recording of earth to monitor activities, such as ship and car movements, as well as changes in forest areas. – Bernama-Yonhap “We hope to strengthen this aspect during my visit to promote peace and stability in our region,” Marcos said in a statement before leaving for Hanoi for a two-day state visit. Marcos is expected to meet Vietnam’s top officials and work on agreements on coastguard cooperation and rice supply. Vietnam is a major rice exporter and the Philippines is one of the world’s biggest importers of the grain. Marcos said he hopes his visit would bring their relations to greater heights and “usher in a new era of friendship and cooperation”, with talks on trade, investment, education and tourism, as well as “regional and multilateral issues of concern”. Vietnam and the Philippines have overlapping claims in the South China Sea, but have generally friendly relations compared to the heightened tensions between Manila and Beijing over disputed waters. Ties between the Philippines and China have deteriorated this past year, coinciding with a tougher stand by Manila and overtures by Marcos to forge stronger military relations with the United States. The South China Sea, a route for more than US$3 trillion (RM14.19 trillion) in annual ship-borne commerce traffic is claimed almost entirely by China via a U-shaped line policed by its vast coastguard fleet, which cuts into the exclusive economic zones of Vietnam, the Philippines, Malaysia, Brunei and Indonesia. In 2016, the Permanent Court of Arbitration in the Hague said China’s claims had no legal basis, a decision Beijing has rejected. – Reuters
TUESDAY | JAN 30, 2024 8 @thesundaily FOLLOW ON TWITTER Malaysian Paper Hong Kong to allow recognition of China court rulings HONG KONG: A new law, which will allow mainland Chinese courts to enforce their rulings in Hong Kong in commercial and civil cases, took effect yesterday in the finance hub. The reciprocal arrangement will allow for the two-way recognition of court judgments in Hong Kong and China for civil or commercial lawsuits, should the parties apply for it. The former British colony has a common law system distinct from mainland China and it is often cited as key to the city’s appeal to international investors. But observers have said the legal firewall between Hong Kong and China has gradually eroded as Beijing tightens its grip on the city after the enactment of a national security law in 2020 designed to quell dissent. The new measure would lead to “a higher degree of certainty and predictability” and “reduce the need for relitigation”, officials have said. Major exemptions to the new arrangement include judgments about insolvency. Officials have stressed that crossover recognition is optional and the decision is up to the parties to a lawsuit. “Mainland judgments will not automatically take effect in Hong Kong, and assets in Hong Kong will not be confiscated by the mainland directly after the arrangement has come into operation,“ a Department of Justice spokesman said last week. The new arrangement was the product of a 2019 agreement between Hong Kong’s Department of Justice and the Supreme People’s Court of China, officials said. Hong Kong has already passed laws to allow similar two-way recognition of judgments concerning matrimonial and some monetary disputes. There is also a separate pilot programme for reciprocal recognition of insolvency rulings since 2021. – AFP B R I E F SJAPAN MOON LANDER COMES BACK TO LIFE TOKYO: Japan’s Moon lander has come back to life, the space agency said yesterday, enabling the craft to proceed with its mission of investigating the lunar surface despite its rocky start. The surprise announcement was a boost to Japan’s space programme, nine days after the Smart Lander for Investigating Moon (Slim) touched down at a wonky angle that left its solar panels facing the wrong way. “Last evening we succeeded in establishing communication with Slim, and resumed operations,” Japan Aerospace Exploration Agency said on social media platform X, posting a grainy image of a lunar rock known as “toy poodle”. “We immediately started scientific observations and have successfully obtained first light for 10-band observation,“ it said, referring to the lander’s multiband spectroscopic camera. – AFP CNN PHILIPPINES TO CLOSE DUE TO FINANCIAL LOSSES MANILA: CNN Philippines will stop operations from Jan 31 due to “significant financial losses”, its owner announced yesterday, in the latest blow for the media industry in the Southeast Asian nation. The broadcaster began operating in the Philippines in 2015 as a franchise of CNN, delivering mainly English-language news on free-to-air, cable and pay television. Staff were told of the decision to shut down yesterday. “The decision follows financial losses sustained over the past years, despite rigorous efforts to adapt and innovate in a rapidly evolving media landscape,“ CNN Philippines-owner Nine Media Corp said. – AFP France wants EU to change law on environmental issues PARIS: France wants a decision this week to change European Union (EU) environmental regulations regarding agricultural surfaces which have to remain fallow under new biodiversity rules, in order to help the country’s farmers, its farming minister said yesterday. The French government is battling to try and contain nationwide protests from farmers, who are demanding better pay and living conditions. Belgian farmers also began a protest yesterday, with many farmers across Europe complaining that the EU is not doing enough to help them in the face of international competition and globalisation. “In the coming 48 hours, there will be certain measures we will put on the table,” French Farming Minister Fesneau told France 2 TV. oDecision will help quell protests from farmers demanding better pay and living conditions, says minister Fesneau said one area of contention which France would look to change in order to help the country’s farmers was an EU nature law passed last year. Last year, the European Parliament voted to pass a fiercely contested law to restore degraded natural ecosystems. The legislation will require countries to introduce measures restoring nature on a fifth of their land and sea by 2030. The aim is to reverse the decline of Europe’s natural habitats – 81% of which are classed as being in poor health. However, many farmers have complained this could impact their businesses. – Reuters Disposable vapes set to be banned in Britain LONDON: Disposable vapes are set to be banned in Britain as part of plans to tackle the rise in young people vaping and protect children’s health, reported German news agency dpa. British Prime Minister Rishi Sunak is set to announce the plan to implement the ban – using powers already in place under the Environmental Protection Act – which is expected to come into force at the end of 2024 or the start of 2025, during a visit to a school yesterday. It forms part of the British government’s response to its consultation on smoking and vaping, which was launched in October last year. New data shows the number of children vaping in the last three years has tripled, the government said, adding that use among younger children is also rising, with 9% of 11 to 15-year-olds now using vapes. Disposable vapes have been pushing the rise in youth vaping, with the proportion of 11 to 17-year-old vapers using disposables increasing almost ninefold in the last two years, it added. New powers will also be introduced to restrict flavours which are specifically marketed at children and ensure that manufacturers produce plainer packaging and change how vapes are displayed in shops, moving them out of children’s sight. New £100 (RM601) fines will also be brought in for shops in England and Wales, which sell vapes illegally to children. Trading standards officers will be given powers to act “on the spot” to tackle underage tobacco and vape sales. This builds on a maximum £2,500 fine that local authorities can already impose. Vaping alternatives, such as nicotine pouches, will also be banned for children. Sunak said: “As any parent or teacher knows, one of the most worrying trends at the moment is the rise in vaping among children, and so we must act before it becomes endemic. “The long-term impacts of vaping are unknown , so while vaping can be a useful tool to help smokers quit, marketing vapes to children is not acceptable.” – Bernama-dpa HISTORICAL RE-ENACTMENT ... A recreation of members of the King’s Army commemorating the death of King Charles I at the hands of the Parliament in 1649 in London. – AFPPIC
TUESDAY | JAN 30, 2024 9 First drone strike against US forces kills three, injures 34 oBiden says Iran-backed groups carried out attack in Jordan, while Tehran denies involvement WASHINGTON: Three US service members were killed and at least 34 wounded in a drone attack by Iranbacked militants on US troops in Jordan, said US President Joe Biden, the first deadly strike against US forces since the Israel-Hamas war erupted. The attack, which Iran said it was not involved in, marks a major escalation in tensions that have engulfed the Middle East, amid concerns Israel’s war against Hamas could spread into a wider conflict involving Iran’s proxies in Lebanon, Yemen and Iraq. “While we are still gathering the facts of this attack, we know it was carried out by radical Iran-backed militant groups operating in Syria and Iraq,” Biden said in a statement. At least 34 personnel were injured in the Sunday attack, according to a statement from US Central Command. Iran’s mission to the United Nations said in a statement yesterday that Tehran was not involved in the attack. “Iran had no connection and had nothing to do with the attack on the US base,” the mission said in a statement published by the state news agency Irna. It added: “There is a conflict between US forces and resistance groups in the region, which reciprocate retaliatory attacks.” The US military said the attack occurred at a base near the Syrian border. It did not name the base, but a person familiar with the matter identified it as Tower 22 in Jordan. Tower 22 holds a strategically important location in Jordan, at the most northeastern point where the country’s borders meet Syria and Iraq. Little is publicly known about the base. But it includes logistics support and there are 350 US Army and Air Force troops at the base. The conflict in Gaza began on Oct 7 when Hamas fighters stormed border defences to attack Israeli bases and towns, killing more than 1,200 people and seizing more than 200 hostages. Israel’s intense bombardment of Gaza since Oct 7 has killed nearly 25,000 Palestinians, says health authorities in the Hamas-run enclave, and left millions homeless. Missile attacks in Syria, Lebanon, Iraq and Yemen this month by Iran-backed militants has highlighted the increasing risk of a wider regional conflict pitting Iran and its allies against Israel and the US. While the US has maintained an official line that Washington is not at war in the region, it has been retaliating against the Iran-backed groups in Iraq and Syria and carrying out strikes against Yemen’s Houthi military capabilities. Yemen’s Iran-aligned Houthis have continued to attack shipping in the region, and yesterday said they had launched a rocket at US warship Lewis B. Puller as it sailed through the Gulf of Aden a day earlier. – Reuters Four linked to Israeli intelligence executed TEHRAN: Iran executed four men at dawn yesterday after they were convicted of collaborating with the country’s arch-foe Israel on a plan to sabotage an Iranian defense site, according to the judiciary. The four defendants, identified as Mohammad Faramarzi, Mohsen Mazloum, Wafa Azarbar, Pejman Fatehi, were arrested in July 2022 and accused of plotting to carry out out an operation against a Ministry of Defense centre in the central province of Isfahan, according to the judiciary’s Mizan Online website. “The death sentence of four members of a group affiliated with the Zionist spy organisation, who were arrested for plotting a bombing operation in Isfahan, was carried out this morning,“ Mizan Online reported. According to Iran, the men had been recruited by Mossad, Israel’s intelligence service, “about a year and a half before the operation”. They were sent to African countries for “training courses in the military centres” where Mossad officers were present, the judiciary added. The men were sentenced to death in September 2023. In August 2023, Iran claimed to have foiled a “very complex” Mossadinitiated project to “sabotage” its ballistic missile industry. A few months earlier, in February, Teheran accused Israel of being responsible for a drone attack on a military site in Isfahan. The two countries have been engaged in a shadow war for decades. – AFP Saudi CEO nabbed for alleged money laundering B R I E F S25,000 GAZA CHILDREN ORPHANED TEHRAN: Euro-Mediterranean Human Rights Monitor has painted a grim picture of harrowing conditions of children in Gaza, saying 25,000 Palestinian kids have become orphans as a result of Israel war on the besieged territory. The rights group, according to Islamic Republic News Agency quoting Palestine’s Sama news agency, said 25,000 children have lost one or both parents in Gaza since Oct 7 last year, the day Israel started its bombing and shelling campaign in the coastal Palestinian strip. Earlier, the Gaza Health Ministry announced that the number of martyrs of the Israeli military campaign has reached 26, 422 while 65,087 wounded since the beginning of the war. Apart from casualties, the relentless attacks on residential buildings, refugee camps and hospitals have inflicted miseries on the people of Gaza. – Bernama-Irna AUSTRIA SUSPENDS UNRWA PAYMENTS BERLIN: Austria is suspending payments to the United Nations’ Palestinian aid agency UNRWA pending a full investigation into accusations that its employees were involved in the Oct 7 Hamas attack on Israel, the Austrian foreign ministry said yesterday. “We call on UNRWA and the United Nations to conduct a comprehensive and complete investigation into the allegations,“ the ministry said. Austria joins Britain, Germany, the United States, Australia and Canada, among others, in pausing funding to the aid agency. – Reuters RIYADH: The head of a tourism and heritage project meant to help establish Saudi Arabia as a global arts hub has been arrested on suspicion of money laundering, authorities announced late Sunday. Amr bin Saleh Abdulrahman AlMadani, chief executive of the Royal Commission for AlUla in the northwestern Medina region, “was arrested for his involvement in crimes of abuse of authority and money laundering”, the official anti-corruption authority said in a statement. Both before and after he assumed his position, AlMadani was allegedly involved in illegally obtaining contracts for a separate company in which he has an ownership stake, the statement said, putting the value of the contracts at around 207 million Saudi riyals (RM260 million). “Legal procedures are currently being taken against the detainees for prosecution in a court of law, in line with the laws and regulations,“ the statement said. The website for the Royal Commission of AlUla yesterday did not refer to AlMadani and instead listed Abeer AlAkel as acting CEO. AlUla is home to the Hegra archaeological site, a Unesco World Heritage site famed for its ancient Nabataean tombs dotted amid sandstone mountains and wadis. – AFP BATTLEFIELD PLAYGROUND ... Palestinian children playing with dolls at a makeshift camp housing refugees in Rafah in the southern Gaza Strip. – AFPPIC
TUESDAY | JAN 30, 2024 10 Education remains an important pillar of Malaysian society; it equips students with the skills needed to become productive and useful members of society. We invite you to showcase the best of education and the difference your institution has brought to the education landscape. Education matters so join us in 2024! Contact us now for special deals on digital, video and print advertising. Malaysian Paper 03-7784 6688 [email protected] Creativity boon for education I N today’s ever-evolving world, the education landscape is undergoing a profound transformation. Conventional learning paradigms, where knowledge intake is centred around textbooks, memorisation and standardised tests no longer suffice in preparing students for the challenges of the 21st century. This demands a fundamental shift to a more contemporary learning approach that prioritises foundational literacies, critical thinking and character development. Why is creativity often undervalued and neglected in our classrooms despite its vital role in stimulating these qualities that will help students thrive? As we step into 2024 and look towards further development on the Education Ministry’s 2027 School Curriculum Plan, schools and parents should also delve into the importance of integrating creativity into education and methods to nurture it. Shaping future-ready students With the 2027 School Curriculum Plan aiming to produce well-balanced students, creativity plays a vital role as a catalyst to strengthen character building, thinking skills and lifelong learning, offering a myriad of benefits that extend beyond the classroom. One advantage lies in the intrinsic motivation and engagement experience for students. When learning becomes a canvas for creative expression, students are drawn into the educational process, fostering a genuine enthusiasm to acquire knowledge. Motivation not only amplifies academic achievements but instils a lifelong passion for learning, empowering students to navigate complex situations. Moreover, the integration of creativity bridges the gap between traditional classroom learning and reallife applications. As students engage in creative exercises and projects, they gain a better understanding of how theoretical knowledge, such as numeracy, scientific and civic literacy translates into practical solutions for real-world challenges. An experiential learning approach also enhances the relevance of academic content when it is applied to everyday scenarios. At its core, creativity bolsters curiosity, creative thinking and problem-solving. As students grapple with open-ended tasks, creativity compels students to explore new ideas and perspectives in developing innovative solutions. This, in turn, shapes students into open-minded, adaptable and resourceful individuals, recognising that there may be different ways to approach and solve a problem. Elevating classroom learning experience Creativity needs to be implemented and assessed within the school curriculum, recognising them as “must-have skills” rather than “nice-tohave”. Teachers must embrace innovative learning methods and find creative ways to capture students’ attention. Supported by the Education Ministry, Faber-Castell introduced the Score A Creative Learning programme to equip teachers with practical applications of 10 creative learning techniques, which were cascaded to their students. The results were impressive. Students experienced a more meaningful learning journey, increased study effectiveness and improved grades. Arts as catalyst for learning Teaching young students about global issues, such as understanding the environment and climate change, can be challenging. Art provides a creative way to learn, incorporating visuals, emotions, stories and thinking skills. The Young Artist Award exemplifies this, helping students to not only learn through art but also in grasping environmental issues. In 2023, students nationwide in Malaysia achieved a milestone by breaking the Malaysia Book of Records with the highest number of submissions, making the 2023 Young Artist Award the largest young artist colouring contest. The interpretations of sustainabilitythemed artworks by these young minds were inspiring, showcasing their problem-solving and analytical thinking in addressing global challenges. Raja Ahmad Alauddin, a Young Artist Award finalist who discovered his love for art at the age of four, stood out among them. Aspiring to raise awareness through impactful artwork, Raja Ahmad is an inspiring young illustrator. Additionally, we should continue to support young Malaysians to consider art not only as an outlet for creativity but also as a potential future career goal. As an advocate for learning and creativity, Faber-Castell remains dedicated to collaborating closely with the Education Ministry to champion innovative learning initiatives such as the Score A programme and the Young Artist Award. The 2027 School Curriculum Plan marks a significant stride towards nurturing a generation with a growth mindset, competitiveness and resilience. We encourage schools and parents to embrace initiatives that prioritise creativity and essential skills for pupils’ success. This approach is beneficial not only for young Malaysians but also for the overall progress and well-being of the country and society. We cannot afford to underestimate the power of creativity in education. The writer is the managing director of Faber-Castell Malaysia. Comments: [email protected] “As students grapple with open-ended tasks, creativity compels students to explore new ideas and perspectives in developing innovative solutions. Creativity plays a vital role as a catalyst to strengthen character building, thinking skills and lifelong learning, offering a myriad of benefits that extend beyond the classroom. – REUTERSPIC COMMENT by Andrew Woon
11 TUESDAY | JAN 30, 2024 The fight I lost to maintain leadership I HAD mentioned that I was made a committee member of the Incorporated Society of Planters for the Kluang branch in my previous column, and it did not take long for members to propose my candidacy for the national position of vice-chairman. All seemed fine until a potential obstacle emerged in the form of Khoo Kay Tuan, hailing from an estate not far from Kuala Lumpur. Established in 1919, the Incorporated Society of Planters, also known as ISP, was founded by British planters. Its objective was to advocate for improved housing conditions in the days of oil lamps and water wells, and perhaps to secure jobs. The membership grew, and during the war, it also managed to raise funds to acquire an aircraft for the British efforts in Europe. After the war, the planters returned, and the ISP resumed the publication of its monthly Planter magazine, featuring technical papers and personal stories. On the back pages, it showed the changes of address, names of new members and those who had died, including casualties from the Emergency. It was a link for individuals residing in remote areas. The ISP also conducted examinations on agriculture, estate management, soil and botany as well as language assessments, including Tamil and Hakka. Many planters distinguished themselves by passing the examinations and earning the title of Associate of the Incorporated Society of Planters. Over the years, the society helped build the expertise for the industry. Then came the time for change, and at a meeting in the Kluang club in 1969, some senior expatriates suggested I be the branch secretary. The era for them was ending. The secretary J.S. Ballard was leaving for a new job in Papua New Guinea. It was a task reading through the files but soon my apprehension waned. Thereafter, I was made chairman of the branch. This meant attending quarterly meetings in Kuala Lumpur at a rented office on Jalan Yap Kwan Seng, giving me an opportunity to interact with planters from different states. With the confidence I had gained, I did not reject the nomination for the post of national vice-chairman, but I did not realise the challenges I would face for this role, which was a step towards the top post of chairman in the future. I met Khoo earlier at the Federation Military College, where we were students. At that time, he had earned the Commandant’s Prize for his exceptional leadership and sportsmanship. Seeing him again, it was evident that he had grown taller, yet remained as lean as before. I watched him arrive at the annual general meeting at the Commonwealth Club at Bukit Damansara, striding in with a group of followers. The election for the chairman proceeded smoothly, with Tan See Yeok, a seasoned planter affiliated with Kuala Lumpur-Kepong, being the sole nominee. He had our votes without any show of hands. When it was time to vote for the position of vicechairman, tension permeated the room. I knew that Khoo had put in significant effort, and many were on his side. It became evident during the show of hands that Khoo emerged as the winner. Upon returning to the office, I suggested using postal ballots starting from the following year to enable all members, especially those in more distant locations like Sabah, to participate in the voting process, given that my name had become more familiar in such places. In the following year (1973), when the envelopes came in, I had most of the votes. A few months later, I had the chance to visit Khoo one evening as I was returning from a meeting in Kuala Lumpur. I knocked on the door of his bungalow at Lothian Estate, near Seremban. Although we were not bosom friends, I listened as he talked incisively about the society’s mission and its future direction. He raised questions, such as whether we should function as a trade union similar to the recently established Association of West Malaysian Plantations Executives. Additionally, he wondered why we did not have our own building instead of relying on rented premises prone to floods. At the end of our conversation, I told him that my branch had nominated me to run for the chairman’s position in the upcoming year, seeking his support. In return, I pledged my support for him to secure the vice-chairman’s post. Although I was unsure about his commitment, Khoo kept to his word. He won the vote for vice-chairman, and I, in turn, assured him of my support when he decided to vie for the chairman position in the future. He also helped to raise money for a building by holding a fund-raising dinner at the Sungei Ujong Club in Seremban. The guest of honour was then Finance Minister Tun Tan Siew Sin. With the fundraiser, we were able to purchase a bungalow at Jalan U Thant in Ampang. As promised, I resigned as chairman. Khoo may have thought I was honouring my word, but there was another reason. My company chairman said my trips were taking my attention from work. This was after I had returned from opening the Sarawak branch in Miri. I was welcomed by the chairman, Jog Stewart, a Scottish planter in Commonwealth Development Corp, and his committee of senior planters and agronomists, who were developing bigger areas in the state. During my speech, I acknowledged the warm welcome and expressed enthusiasm about working together. The applause was gratifying. Upon my return, the chairman inquired about the trip and pressed on with his next question. “When is your chairmanship ending?” I told him it was my second year, and that it would end in December. “I suggest you call it a job well done, and refocus on running the daily operations. We need to raise the yield per hectare and get more income. The London office has changed the management accounting method and has asked us to revalue the estates. They will rate us on return on assets, not on equity. We will not look good unless we increase profits.” With a feeling of regret, I sent a note to the society that I was not standing for the next election. When I told Khoo , he did not say anything. He probably thought that I was honouring my word. I found no reason to disclose the other reason. The writer has extensive experience in the management of oil palm plantations. Comments: [email protected] E STATE MANAGERWRITE S BY MAHBOB ABDULLAH LETTERS [email protected] Base decisions on law, evidence and fairness SHOULD the Attorney-General (AG) explain the reason(s) for dropping charges in high-profile cases? This question should be answered in the context of the two concepts of the law and public good. The law does not require the AG to explain his reasons but is that in the interest of the public? The law refers to a set of rules and regulations that are enforced by the government to maintain order and protect citizens’ rights. On the other hand, the public good refers to the well-being of society as a whole. While the law is designed to protect individual rights, it may not always align with the public good. For example, a company may be legally allowed to pollute the environment, but this would not be for the public good as it would harm the environment and the health of the people living in the area. Similarly, a law that allows discrimination against a particular group of people would not be in the public good as it would violate the principles of equality and justice. It is important to strike a balance between the two to ensure that the rights of individuals are protected while also promoting the overall welfare of the community. Offering clear reasons for withdrawing charges promotes transparency in the legal system. It allows the public to understand the decision-making process and ensures that the AG’s office is held accountable for its actions. When charges are dropped without explanation, it can erode public trust in the justice system. Providing reasons helps maintain the confidence of citizens in the integrity of legal proceedings. Requiring explanations for charge withdrawals serves as a safeguard against potential abuse of power. It ensures that decisions are made based on legal merits rather than political or personal considerations. Publicly stated reasons can serve as legal precedents for similar cases in the future. They help establish a consistent framework for making such decisions and avoids arbitrary actions. Providing reasons ensures that all parties involved, including the “Publicly articulated reasons can stimulate constructive public discourse on legal matters, promoting a better understanding of the legal process and its implications. accused, victims, and the public, understand why charges were dropped. This will promote fairness and equality under the law. Knowing that withdrawals require justification can deter frivolous or unjustified charges in the first place. Prosecutors may think twice before initiating cases they cannot sufficiently justify. Reasons for withdrawing charges can help clarify the legal standards and criteria used by the AG’s office. This clarity can guide future legal proceedings and interpretations of the law. In cases where charges were initially filed in error, providing reasons will allow for acknowledgement of mistakes and corrective actions. This will help rectify any injustice caused to the accused. Explaining the rationale behind charge withdrawals can be an educational opportunity for the public, helping them understand the complexities and challenges of the legal system. Publicly articulated reasons can stimulate constructive public discourse on legal matters, promoting a better understanding of the legal process and its implications. In essence, providing reasons for withdrawing charges after they have been proffered is a fundamental aspect of a just and accountable legal system. This will ensure that decisions are made based on law, evidence and fairness, rather than arbitrary or undisclosed factors. Tan Sri Lee Lam Thye Kuala Lumpur Providing reasons for withdrawing charges after they have been proffered is a fundamental aspect of a just and accountable legal system. – REUTERSPIC
HEALTH HEALTH 12 TUESDAY | JAN 30, 2024 Between puffs GUM (periodontal) disease is an infection of the gums and, if left untreated, can damage the soft tissues and bone structure that support your teeth. In severe cases, it can make your teeth fall out. Plaque biofilm derived from saliva is the primary cause of periodontal disease. Plaque biofilm formation is a continuous process and it accumulates on the surfaces of teeth if oral hygiene is not performed satisfactorily to remove it. The oral cavity is home to more than 700 bacterial species. The bacteria from the oral cavity will contaminate plaque biofilm and if it stays on your teeth for too long, several layers of plaque biofilm and tartar, which is hardened plaque and termed calculus, will develop. The bacteria found within the plaque biofilm will discharge byproducts into the surrounding gum tissue, leading to the initiation and progression of gum disease. The rough surfaces of tartar can also act as a trap for the adherence of plaque biofilm, leading to further damage to the gum tissues. Smoking is classified as a contributing factor to the progression of periodontal disease. Epidemiological studies have provided evidence that tobacco smokers have poorer oral hygiene than non-smokers and also have increased quantities of dental tarter (calculus). Most of these differences can be attributed to less favourable tooth brushing habits, particularly evident in male smokers. However, smoking is also associated with a decreased flow of saliva, which may explain the increased tendency to form dental tartar. Smoking and gingivitis (inflammation of the soft outer layer of the tooth). Heavy smokers often present with a thickened, fibrotic appearance to their gum tissues. The rate of plaque accumulation is similar in smokers and non-smokers. However, smokers show less gingival inflammatory change, with less gum bleeding, gum redness and fluid flow from the gums. Hence, it appears that smoking A diagrammatic description of the attachment apparatus of the tooth. oManaging periodontal disease in a smoking population █ BYPROFESSOR DR DASAN SWAMINATHAN may suppress the normal immune response to the accumulation of plaque biofilm. The major clinical implication of these findings is that the masking of gum bleeding in smokers may lead to a failure to recognise the presence of periodontal disease. Possible mechanisms for this reduced gum bleeding include the vasoconstriction of gum blood vessels caused by smoking. Smoking and periodontitis (inflammation of the deeper supporting structures of the tooth). Recent studies have revealed an association between smoking and more severe periodontitis. Smoking has been shown to be associated with deeper periodontal pockets and eventually these pathologic pockets will reach the underlying bony structures (alveolar bone) below the soft gum tissues. The toxic by-product produced by bacteria within the plaque biofilm will travel via the periodontal pocketing, reaching into the deeper hard tissues and will cause the destruction and eventual loss of the alveolar bone. These processes will finally culminate in the tooth becoming mobile, leading to eventual tooth loss. There is also evidence that the rate of progression of periodontitis is more rapid among smokers. Possible mechanisms through which smoking alters the expression of periodontal diseases include effects on the composition of plaque biofilm and also effects on the host response. It has been hypothesised that smoking can reduce oxygen within the tissues (redox potential), which will favour anaerobic microorganisms that do not require oxygen to survive and multiply, leading to the formation of more pathogenic plaque biofilm. The vasoconstriction will also limit the ability of the tissues to deliver an immune response via the blood supply to the gum tissues. Advice to patients. How can gum disease be prevented? You can help avoid gum disease with proper oral hygiene habits by following these steps: 0 Brush your teeth twice a day. 0 Floss often to remove plaque. 0 Use antimicrobial mouth rinses like chlorhexidine if you have any issues with oral hygiene, like poor manual dexterity. 0 See your oral healthcare provider regularly for check-ups and for management of any gum disease. What can oral healthcare providers do to manage gum disease in smokers? Steps in the management of gum disease (stringent oral hygiene): 1. Scaling along the gum line to remove plaque and tartar 2. Root debridement to remove bacterial plaque, biofilm and tartar attached deep in the roots of the teeth. 3. Gum surgery to help manage gum or boneloss due to periodontal disease, where required. 4. A smoking cessation programme for patients who find it difficult to quit smoking. 5. Regular reviews and maintenance phases for patients whose disease is under control and oral hygiene is satisfactory. My experience in dealing with patients who are smokers In spite of the awareness of the adverse effects of smoking on health, many individuals will continue to be smokers. Many will not be aware of the effects that tobacco may have on their systemic and periodontal health. There is ample evidence in the literature to sencourage patients to reduce or stop smoking as part of the management of gum disease. Constant reminders to patients about the detrimental effects of smoking are advocated. Extra care needs to be taken in the periodontal examination of smokers. As mentioned earlier, it is likely that visual signs of periodontal disease, like bleeding on probing, will be masked. This will entail careful periodontal probing, clinical examination of gum tissues and radiographic examination to reveal the true level of destruction to the supporting structure of the teeth. Smokers need to be informed prior to the commencement of periodontal treatment that the outcome of their treatment may be compromised if they continue to smoke. The take-home message is that one should try to stop smoking to prevent the many health issues that are a consequence of smoking. Gum disease leads to tooth loss. - 123RF
TUESDAY | JAN 30, 2024 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: [email protected] Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: [email protected] Miti taking steps to address skilled labour shortage oIt is coordinating with Human Resources and Higher Education ministries, and engaging with TVET Council and manufacturing industry KUALA LUMPUR: The Ministry of Investment, Trade and Industry (Miti) is coordinating with the Ministry of Human Resources and the Ministry of Higher Education to address the issue of skilled labour shortage in the country, particularly in the manufacturing sector. Saying that the new Cabinet line-up is a “good team”, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said both ministries have agreed to set up a committee to address the issue. held yesterday concluded with a resolve on disciplined execution, as well as stronger public-private collaboration to ensure Malaysia’s reindustrialisation agenda – as outlined by the New Industrial Master Plan 2030 (NIMP2030) – remains on track. It stated that NIMP2030 serves as the cornerstone for Malaysia’s reindustrialisation. Miti said it looks forward to facilitating the shared responsibility by strengthening collaboration and partnership with key stakeholders. Almost 300 people from 24 ministries and Miti’s agencies, including representatives from 103 associations, chambers of commerce and business councils attended the dialogue. In his closing remarks, Tengku Zafrul highlighted several issues, such as gearing up SMEs on ESG disclosures via the National Industry ESG Framework (i-ESG); addressing the skilled talent gap in the manufacturing industry; attracting the right foreign direct investments; and getting the industry to embrace new technology as quickly as possible. He said, “A policy is only as good as its implementation. Proper execution of NIMP is increasingly pertinent for Malaysia to continue enhancing its national business and investment landscape competitiveness. “In putting our resources where our mouth is, Miti last year announced its Quarterly Report Card Day, where we will share progress of the various policies under Miti’s purview. We are currently developing a dashboard for both the NIMP and other key metrics from specific policies, to make it easier for industry members and the public to track our progress. As we track projects, we must also be bold enough to review targets, if necessary, so that we can correct our course occasionally.” Sabah out to attract ESG-conscious global investors KUALA LUMPUR: Sabah offers lucrative opportunities for environmental, social and governance (ESG) conscious global investors, according to Invest Sabah Bhd. Invest Sabah chief communications officer Datin Nirvana Jalil Ghani (pic) said the state is focusing on promoting ESG into Sabah. “The government allocates about RM30 million annually to Sabah for forest preservation. And this expenditure does not include other investments. As you can see, in terms of research, governance, and more, we are moving towards a completely green approach. That’s why, even regarding the investments we bring into Sabah, our focus is on green technology and anything related to environmental sustainability,“ she told SunBiz. Nirvana pointed to the uniqueness of Sabah which lies in the fact that 59% of Malaysia’s mangroves are located in the state which offers research and investment opportunities for local and international investors. “In terms of rainforest, Sabah boasts the second oldest rainforest globally and the oldest tropical rainforest,” she said. Currently, Sabah is seeking investment in manufacturing, tourism, agriculture, human capital, and infrastructure and utilities. Furthermore, although the state government has a policy against exporting raw materials, it invites investors to explore opportunities by investing in and establishing processing factories in Sabah. This encompasses, among others, a range of industries, including cocoa, timber and biomass. For manufacturing, Sabah has Kota Kinabalu Industrial Park (KKIP), wholly owned by the Sabah state government. Covering 8,320 acres, it comprises several components including industrial, commercial, R&D and institutions, residential and tourism development. Sabah is located within the B r u n e i - I n d o n e s i a - M a l a y s i a - Philippines East Asean Growth Area with international direct flights to Kota Kinabalu from China, Hong Kong, Macau, Taiwan, Philippines, Brunei, Singapore and South Korea. There are 2,309 flights arriving at Kota Kinabalu Airport, which equates to 77 flights per day or three flights per hour. On an average day, there is at least one flight arriving every 20 minutes (Aug 2023). From January to May 2022, there were 558,169 registered tourist arrivals compared to 102,965 in the previous year. In 2019, over nine million passengers passed through the KKIA, making it the second busiest airport in Malaysia after Kuala Lumpur International Airport (KLIA) in terms of passenger and aircraft movements and the third busiest in terms of cargo handled. The state’s major trading partners are Peninsular Malaysia (RM16.4 billion export, RM18.4 billion import), China (RM7.6 billion export, RM3.1 billion import), Australia (RM4.1 billion export, RM275 million import), European Union (RM3.4 billion export, RM861 million import), and India (RM3.5 billion export, 460 million import). - by Hayatun Razak UK advisory group says M’sian palm oil is sustainable KUALA LUMPUR: Malaysian palm oil is sustainable, and its zero-tariff rate will be beneficial, according to the Trade and Agriculture Commission (TAC), an expert advisory group to the United Kingdom government. In a statement yesterday, Malaysian Palm Oil Council CEO Belvinder Sron said the new independent expert report clearly shows that Malaysia’s commitment to sustainability is clear and that the Malaysian Sustainable Palm Oil (MSPO) certification scheme is the gold standard for sustainable palm oil certification. “The facts about Malaysia’s commitment to palm oil excellence are clear. MSPO is the gold standard for sustainable palm oil certification and can assure both importers and UK authorities that all legal requirements are met and no deforestation has taken place. “Malaysia leads the world in sustainable palm oil certification, and we look forward to supplying more high-quality sustainable palm oil to the UK and other markets,” she said. MPOC said the expert analysis concluded that the MSPO’s sustainability requirements meet and exceed UK legislation’s requirements. “There are potential benefits to the UK if more Malaysian palm oil is exported – because of higher sustainability standards in Malaysia compared with other countries. The UK should move ahead with the planned zero tariff on Malaysian palm oil. “The TAC provided expert advice to the UK government following the UK’s accession to the Comprehensive and Progressive Agreement for a TransPacific Partnership (CPTPP), in 2023. Malaysia is a founding member of CPTPP,” it said. – Bernama █ BYHAYATUN RAZAK [email protected] BLand, MRCB, IJM shares up in early trade on KL-S’pore HSR bid news KUALA LUMPUR: Berjaya Land Bhd (BLand), IJM Construction Sdn Bhd and Malaysian Resources Corporation Bhd (MRCB) shares on Bursa Malaysia went up in early trading yesterday following an announcement of a consortium with Keretapi Tanah Melayu Bhd (KTMB). As at 10.12am, BLand and MRCB, which emerged among the most actively traded counters, gained half a sen each to 46 sen and 65.5 sen with 28.33 million and 39.54 million shares changing hands respectively, while IJM added 1 sen to RM2.24 with 2.23 million shares transacted. On Friday, BLand announced that its 70% owned subsidiary, Berjaya Rail Sdn Bhd, has formed a consortium with IJM Construction, MRCB and KTMB to bid for the Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) project. In filings with Bursa Malaysia, the consortium members said they submitted the concept proposal for the HSR request for information on Jan 15.– Bernama EPIC targets profit of RM14.9m this year KUALA TERENGGANU: Eastern Pacific Industrial Bhd (EPIC) is targeting a profit of RM14.9 million this year versus last year’s RM7.8 million due to the growth in several business segments, especially activities at Kemaman Port. COO Mukhtar Suhaili said, “Last year, the company generated RM7.8 million in profit from four core segments -- port, renewable energy (solar), engineering services for the oil and gas industry and Kemaman Supply Base. “We are expecting an increase of up to RM14.9 million following a rise in new business activities, and the sudden and encouraging demand generated from Kemaman Port,” he said at EPIC’s Back To School 2024 programme here yesterday. In order to meet increasing demand for Kemaman Port’s services, the company has implemented a phased port expansion estimated to cost RM1.6 billion. While awaiting the project’s completion, EPIC has taken steps to increase the number of cranes at the port to improve service efficiency. Terengganu government-linked EPIC is a service provider for the oil and gas sector. – Bernama “We have also engaged with the National Technical and Vocational Education and Training (TVET) Council for different levels of skills. We have also discussed with the industry how they should get involved in discussions at an early stage,” he told reporters after chairing Miti Dialogue 2024 yesterday. The minister said there is a skilled talent gap, particularly in the electrical and electronic (E&E) sector, stating that “50,000 engineers are needed annually, but Malaysian universities only produce 5,000 graduates in this field each year”. In a separate statement, the ministry said Miti Dialogue 2024
BIZ & FINANCE BIZ & FINANCE TUESDAY | JAN 30, 2024 14 RM267.7m net foreign buying on Bursa last week PETALING JAYA: Foreign investors returned as net buyers of Bursa Malaysia last week, contributing to a net foreign inflow of RM267.7 million, according to MIDF Research. In its weekly fund flow, the research house said that foreign investors only net sold RM66.6 million on Tuesday, while they were net buyers for the remaining days of the week. MIDF pointed out that as expected, Bank Negara Malaysia kept its overnight policy rate unchanged in its first Monetary Policy Committee meeting of 2024 at 3%. MIDF said the top three sectors with the highest net foreign inflows were financial services (RM112.2 million), utilities (RM97.3 million) and property (RM86.6 million) while the top three sectors with the highest net foreign outflows were consumer products and services (RM39.6 million), industrial products and services (RM38.0 million) and healthcare (RM21.2 million). Furthermore, the research house remarked that local institutions turned net sellers for the week, after disposing RM167.1 million worth of equities. It added that they only net bought RM21.0 million on Tuesday albeit were net sellers for the rest of the week. “Local retailers were still on a net selling spree, net selling of RM100.6 million last week. This is their fourth consecutive week of net selling. Like local institutions, they only net bought on Tuesday at RM45.6 million but were net sellers for the entire week,” it remarked. In terms of participation, there was an increase in average daily trading volume among local institutions and foreign investors by 3.3% and 2.5% respectively while local retailers recorded a decrease of 14.6%. MAG to add 12 new aircraft to fleet in 2024, including first A330neo KUALA LUMPUR: Malaysia Aviation Group Bhd (MAG) is set to expand its fleet by introducing 12 new aircraft in 2024, including its first Airbus 330-900 (A330neo), which is scheduled to arrive in the third quarter of this year. In a statement yesterday, the group said it is looking to receive four A330neo this year, alongside eight Boeing 737-8, to support its network growth requirements. MAG said it signed a memorandum of understanding with Airbus, RollsRoyce and Avolon in August 2022 for the acquisition of 20 A330neo scheduled to be delivered through to 2028. It added: “10 of the aircraft are directly purchased from Airbus with a back-to-back sale and leaseback arrangement with Avolon, while the remaining 10 are leased directly from Avolon.” The A330neo will provide improved operational efficiency to its fleet while also allowing it to address environmental targets by offering up to 25% reduction in fuel consumption and emissions, MAG said. It added that the acquisition underscores the group’s steadfast commitment as it seeks to provide modernity and elevate the standards of its service offerings while ensuring support for the post-pandemic growth of the aviation industry. MAG group managing director Datuk Capt Izham Ismail said the A330neo, which will be inducted in the third quarter of the year, will gradually replace the A330ceo in its fleet and operate across Asia, Oceania, and the Middle East. “We will continue to channel our investments into endeavours that strategically align with the key pillars driving our customer value proposition, namely cabin comfort, in-flight dining, and service delivery of our esteemed cabin crew,” he said. Additionally, the group will retrofit six of its A350-900s starting in 2026 to ensure consistent cabin standardisation and premium experiences for guests in line with the new A330neo cabin, further solidifying its fleet modernisation initiative. MAG currently has a fleet of 104 aircraft through its subsidiaries Malaysia Airlines, Firefly, MASwings, and MASkargo. – Bernama Malaysia’s producer price index slips 1.3% in December PETALING JAYA: Malaysia’s producer price index (PPI), which measures the prices of goods at the factory gate, continued to decrease in December 2023, recording negative 1.3% compared with negative 1.5% in the previous month, the Department of Statistics Malaysia (DoSM) reported yesterday. Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the decrease was attributed to the mining sector which was negative 3.4% (November: -4.7%), dragged down by declines in the extraction of natural gas (-7.8%) and the extraction of crude petroleum (-1.9%) indices. The manufacturing sector continued to drop – negative 1.5% in December against negative 1.4% in November, attributed to manufacture of coke and refined petroleum products (-12.3%) and manufacture of food products (-4.2%) indices. The electricity and gas supply sector went down by 0.6%, similar to the previous month. However, the agriculture, forestry and fishing sector increased by 1.3% after a negative 0.4% in November due to an incline in the animal production (6.3%) and the fishing (3.8%) indices. At the same time, the water supply index went up 0.4% in December. “On a monthly basis, PPI local production further decreased by negative 0.2% in December 2023 as compared to negative 0.7% in the previous month. With the exception of the agriculture, forestry & fishing sector which remained unchanged, all other sectors recorded a decline in this month. The mining sector fell negative 1.6% (November 2023: -4.7%) with the extraction of crude petroleum (-5.1%) index posting a decrease,” said Mohd Uzir. At the same time, the manufacturing sector declined 0.1% (November: -0.5%), affected by the index of manufacture of coke and refined petroleum products (-1.8%) and manufacture of food products (-0.4%). For the utility sector, electricity and gas and water supply indices decreased by 0.3% and 0.4%, respectively. Mohd Uzir said, “The crude materials for further processing index increased by 0.4% in December 2023 (November 2023: 0.3%), with the foodstuffs and feedstuffs index posting an increase of 4.3%. The finished goods index inclined by 1.1% (November: 1.7%), contributed by an increase in capital equipment (2%). By contrast, the intermediate materials, supplies and components index decreased by 3% (November: -3.4%) due to processed fuel and lubricants (-13.8%) and o PPI local production went down by 1.9% in 2023 the first decline since 2020, on lower commodity prices materials & components for manufacturing (- 2.2%) indices.” In 2023, Mohd Uzir said, the PPI local production went down by 1.9% after an increase of 7.8% in 2022. “This was the first decrease since 2020 due to the lower prices of Malaysia’s main commodities. Commodity prices in 2023 were perceived as highly uncertain due to price volatility, especially in energy markets. Crude oil prices have also experienced volatility due to a series of oil output cuts by the Opec+ and supply concerns related to the Israel-Hamas war. The intensifying geopolitical risks, including the potential for the war to escalate, could increase volatility in global energy supplies and prices,” he added. Commodity prices, as measured by the World Bank’s commodity price index, are projected to decline by 4% in 2024 after falling by nearly 24% in 2023, the steepest decline since the Covid-19 pandemic. Energy prices are projected to fall in 2024 and remain relatively flat in 2025. Agricultural prices are projected to decline throughout 2024 and 2025. Geopolitical risks are projected to have a limited effect on commodity prices in 2024, though they remain elevated. Proton Commerce achieves record loan disbursements in 2023 KUALA LUMPUR: Proton Commerce Sdn Bhd, the financing arm of Proton, is eyeing a higher number of loan disbursements in 2024 as it strives to be the number one financier of the national carmaker’s vehicles. Last year, Proton Commerce extended a total of 27,288 loans to Proton buyers, hitting a new high in the number of disbursements since its establishment two decades ago, the carmaker said in a statement yesterday. Proton said eight out of the 12 months in 2023 witnessed more than 2,000 disbursements, with March reaching an all-time high of 2,934 due to the rush to deliver bookings made during the National Economic Recovery Plan incentive period. Proton Commerce CEO Mooi Fi Phang said the firm’s annual market share in Proton financing has demonstrated a steady upward trajectory, progressively advancing from 9% in 2018 to an impressive 18% by the end of 2023. “In January and March 2023, our market position was noteworthy, positioning ourselves as the second-largest entity in terms of market share during this period,” he said. – Bernama
BIZ & FINANCE BIZ & FINANCE TUESDAY | JAN 30, 2024 15 Enclosed is my payment of RM payable to SUN MEDIA CORPORATION SDN BHD. Please WhatsApp your bank-in slip to 0182929936 or email to [email protected] *Not inclusive of vendor service charge Stay informed with the latest news and trends All the best articles from Monday to Friday 32 pages full colour Subscribe now for Monday-Friday copies of theSun newspaper 6 month subscription (128 issues) for only RM110* (Normal price RM128) 1 year subscription (258 issues) for only RM200* (Normal price RM258) 1 year subscription at normal price RM258* (258 issues) + RM50 administration fee to get 2nd year free PERSONAL PARTICULARS Name: NRIC: Race: Malay Chinese Indian Others Profession: Commencement date: Delivery Address: Residence Ofice Postcode: State: Tel: Mobile No: E-mail: DETAILS OF CURRENT NEWS VENDOR (IF ANY) Vendor name: Contact no: For your convenience, you may call or send in your subscription particulars via any of the following: Tel: KL/PJ 03-7781 4000, 03-7784 6688 (9.30am - 5pm, Monday to Friday) Fax: 03-7781 4484 Post: P.O. 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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 ‘HVGT, higher service tax to affect local auto sector’ KUALA LUMPUR: Malaysia’s automotive industry is expected to be affected by the implementation of the High-Value Goods Tax (HVGT) and higher service tax rates this year, according to Maybank Investment Bank (Maybank IB). The bank said the HVGT to be implemented from May 1 could impact premium vehicle sales. Other factors to watch out for that could affect industry players are targeted subsidy rationalisation and higher service tax rates, which cover vehicle repair and maintenance services, it said in a research note yesterday. “(These) are expected to increase the costs of vehicle ownership and impact new car sales,” it added. Maybank IB also said that the rising trend from dealership to the agency model, driven mainly by Western carmakers’ plans to establish a stronger presence in Southeast Asia. It anticipated the total industry volume (TIV) to stabilise at 650,000 units in 2024, a 19% decrease year-on-year (y-o-y) after two consecutive record years of growth (2022: up 42%, 2023: up 11%). Maybank IB said the two key themes to watch for in 2024 are the increasing trend of agency model adoption and the acceleration of electric vehicle (EV) transition as the country has emerged as an increasingly attractive destination for foreign direct investments (FDI) from global automakers establishing their regional headquarter or EV hubs. This includes prominent names such as Volvo, Stellantis, Tesla, and Chery. Meanwhile, it said, carmakers such as MercedesoIndustry players may also face impact from targeted subsidy changes this year: Maybank IB Master Tec makes flat debut on ACE Market PETALING JAYA: Wires and cables manufacturer Master Tec Group Bhd has made its debut at 39 sen flat on the ACE Market of Bursa Malaysia Securities Bhd yesterday. In a media statement, the group said this is one step closer to the group’s plan to construct two new manufacturing plants in Alor Gajah, Malacca and to purchase new machinery and equipment to venture into the manufacturing of medium voltage power cables. Master Tec explained that this expansion will enable the group to market its new products to mostly capital intensive manufacturing industries that demand higher voltage of electricity power transmission such as automotive plants, semiconductor fabrication plants, chemical plants on top of electric vehicle manufacturing plants and their charging station facilities. Managing director Datuk Lau Kim San said that they are mindful of the opportunities coming from various new infrastructure projects and renewable energy projects to be rolled out under the National Energy Transition Roadmap and new manufacturing facilities to be established under the New Industrial Master Plan 2030. “We believe this expansion plan will allow us to meet increasing market demand and to fulfill larger orders from various market segments.” AirAsia MOVE unveils ticketing platform MOVETIX KUALA LUMPUR: AirAsia MOVE (formerly airasia Superapp) has teamed up with Coras, a prominent global ticket distribution platform to introduce MOVETIX, a brand new and innovative ticketing platform offering over 10,000 global events and activities complemented by flights, hotels, rides and more conveniently through one convenient app. MOVETIX is spearheaded by Hassan Choudhury, a seasoned professional in the entertainment industry who will continue his role as CEO of RedRecords, a joint venture between AirAsia and Universal Music. The MOVETIX platform on the AirAsia MOVE app is powered by Coras, whose network of partners include Ryanair, Pegasus, Frontier and more. To kickstart the launch, StarHub and World Football Legends announced the appointment of MOVETIX as the official ticketing partner of the upcoming StarHub Football Festival on April 20-21 in Tampines Hub, Singapore. Benz, BMW, Porsche, Audi, and Dong Feng have announced local assembly plans for vehicles targeting both domestic and export markets. “The influx of FDIs is expected to have a positive long-term impact on the industry, contingent on the position of auto players in the supply chain,” it said. As such, Maybank IB maintained a “neutral” rating on the automotive sector. It favoured Bermaz Auto Bhd (BAuto) for its strong fundamentals and resilient financial standing, robust free cash flows, and an attractive dividend yield offering of over 8%. “Despite our expectation of a y-o-y normalisation in TIV, our projection for BAuto’s earnings growth for financial year ending April 30, 2024, remains well-supported by sustained strong demand for Mazda. “Furthermore, BAuto’s earnings would benefit from an increasing completely knocked down mix in its portfolio. Potential addition of a new EV distributorship may further enhance its portfolio,“ it said. – Bernama
BIZ & FINANCE BIZ & FINANCE TUESDAY | JAN 30, 2024 16 Hong Kong court orders liquidation of Evergrande oHeavily indebted developer unable to offer concrete restructuring plan HONG KONG: A court here yesterday ordered the liquidation of China Evergrande Group, a move likely to send ripples through China’s crumbling financial markets as policymakers scramble to contain a deepening crisis. Justice Linda Chan decided to liquidate the world’s most indebted developer, with more than US$300 billion (RM1.4 trillion) of total liabilities, after noting Evergrande had been unable to offer a concrete restructuring plan more than two years after defaulting on a bond repayment and after several court hearings. “It is time for the court to say enough is enough,” Chan said in the morning court session. She later appointed Alvarez & Marsal as the liquidator. Chan said the appointment of a liquidator would be in the interests of all creditors because it could take charge of a new restructuring plan for Evergrande at a time when its chairman, Hui Ka Yan, is under investigation for suspected crimes. Evergrande chief executive Siu Shawn told Chinese media the company will ensure home building projects will still be delivered despite the liquidation order. The ruling would not affect the operations of Evergrande’s onshore and offshore units, he added. “Our priority is to see as much of the business as possible retained, restructured, and remain operational. We will pursue a structured approach to preserve and return value to the creditors and other stakeholders,” said Alvarez & Marsal managing director Tiffany Wong after the appointment. The decision sets the stage for what is expected to be a drawn-out and complicated process with potential political considerations as investors watch whether the Chinese courts will recognise Hong Kong’s ruling, given the many authorities involved. Offshore investors will be focused on how Chinese authorities treat foreign creditors when a company fails. “It is not an end but the beginning of the prolonged process of liquidation, which will make Evergrande’s daily operations even harder,” said Natixis senior economist Gary Ng. “As most of Evergrande’s assets are in mainland China, there are uncertainties about how the creditors can seize the assets and the repayment rank of offshore bondholders, and situation can be even worse for shareholders.” Evergrande’s shares were trading down as much as 20% before the hearing. Trading was halted in China Evergrande and its listed subsidiaries China Evergrande New Energy Vehicle Group and Evergrande Property Services after the verdict. Evergrande, which has US$240 billion of assets, sent a struggling property sector into a tailspin when it defaulted on its debt in 2021 and the liquidation ruling will likely further jolt already fragile Chinese capital and property markets. Beijing is grappling with an underperforming economy, its worst property market in nine years and a stock market wallowing near five-year lows, so any fresh hit to investor confidence could further undermine policymakers’ efforts to rejuvenate growth. Evergrande applied for another adjournment yesterday as its lawyer said it had made “some progress” on the restructuring proposal. As part of the latest offer, the developer proposed creditors swap their debts into all the shares the company holds in its two Hong Kong units, compared to stakes of about 30% in the subsidiaries ahead of the last hearing in December. Evergrande’s lawyer argued liquidation could harm the operations of the company, and its property management and electric vehicle units, which would in turn hurt the group’s ability to repay all creditors. Evergrande had been working on a US$23 billion debt revamp plan with a group of creditors known as the ad hoc bondholder group for almost two years. A court document yesterday showed Evergrande’s key offshore assets also include an unsecured interest-free loan of HK$2.1 billion (RM1.3 billion) to a previous unit, China Ruyi , positions in the Greater Bay Area Homeland Investment and its fund with a total book value of HK$1.6 billion, bank balances of HK$3 million and receivables of 131.2 billion yuan (RM87 billion) owed by its subsidiaries. Evergrande could appeal the liquidation order, but the liquidation process would proceed pending the outcome of the appeal. – Reuters Thai economy in recession: Deputy minister BANGKOK: Thailand’s economy is in a state of recession owing to a high level of household debt, a deputy finance minister said yesterday, raising pressure on the central bank to cut interest rates. Julapun Amornvivat also said the government was committed to delivering on its signature 500 billion baht (RM66 billion) handout plan of transferring 10,000 baht (RM1,330) each to 50 million Thais, and hoped a delay in its rollout would not be long. He said the policy interest rate, which is at a decade-high of 2.50%, should be cut at the central bank’s next policy review on Feb 7 to help lower high borrowing costs. “The rate should be lowered as high rates now are people’s burden. “People can’t survive.”. Prime Minister Srettha Thavisin has also urged the central bank to cut the key rate to help Southeast Asia’s second-largest economy he says is in crisis. Bank of Thailand Governor Sethaput Suthiwartnarueput, who has come under fire from the premier for not cutting rates despite negative inflation, told Reuters last week growth had been slower than expected but the economy was not in crisis. Sethaput said the current policy rate was “broadly neutral”. The central bank left its policy rate unchanged at 2.50% at its last rate meeting in November, having raised it by 200 basis points since August 2022 to curb inflation. The government last week slashed its 2024 growth projections for the economy to 2.8% from an earlier forecast of 3.2% on weaker exports and lower foreign tourist numbers. It also lowered the 2023 growth estimate to 1.8% from 2.7%, below 2022’s 2.6% growth. Official 2023 gross domestic product is due to be released by the planning agency on Feb 19. “If you ask, now it’s at the dangerous level. It’s a kind of economic recession,” Julapun said, adding the situation was driven by the high debt burden of households and the private sector. “It’s difficult to drive the economy forward. That’s why we’ve seen economic growth that has always been sluggish.” – Reuters Toyota suspends shipments of some models TOKYO: Toyota Motor said it would suspend shipments of some models, including the Hilux truck and Land Cruiser 300 SUV, after irregularities were found in certification tests for diesel engines developed by affiliate Toyota Industries. A special investigative committee had found irregularities during horsepower output testing for the certification of three diesel engine models. Ten models use the affected engines globally, Toyota said. They included the Hiace van, Fortuner SUV, Innova multi-purpose vehicle and Lexus-branded LX500D SUV, it said. Toyota, the world’s biggest automaker by sales, has been separately seeking to resolve a case of misconduct related to rigged collision safety tests at small car specialist Daihatsu. Toyota Industries said it sold about 84,000 affected automobile engines during the financial year to March 31, 2023. A Toyota spokesman could not immediately say how many affected vehicles the automaker had sold over the years. Toyota said the investigation found that electronic control units used during horsepower output testing were different from those used during engine production. Shares in Toyota Industries sank into negative territory shortly after the news and ended down 4% while Toyota Motor shares closed 3.1% higher. – Reuters Some of the 39 buildings developed by Evergrande, that are earmarked for demolition by the authorities due to environmental and construction violations, on the man-made Ocean Flower Island in Hainan province. – REUTERSPIC China to merge three major asset managers BEIJING: China plans to merge three of the nation’s biggest bad debt managers into sovereign wealth fund China Investment Corp (CIC) as part of a plan to reform financial institutions, state media reported. Three asset management companies (AMCs) – China Cinda Asset Management, China Orient Asset Management and China Great Wall Asset Management – will be incorporated into CIC, Xinhua Finance News reported on its website on Sunday, citing unidentified industry insiders. As of yesterday afternoon, the report was no longer accessible on its website. The Ministry of Finance is the largest shareholder of the three AMCs. The move is in line with a government commitment to separating its roles as regulator and shareholder of state-owned financial institutions. With lacklustre economic growth, regulators are curbing risk in the nation’s US$63 trillion (RM298 trillion) financial industry amid mounting local government debt and crisis in the real estate sector. China established four asset management companies (AMCs) in 1999 to help handle bad loans from its four largest state banks, which were facing the prospect of insolvency. But the distressed asset managers expanded beyond their initial remit, and themselves began to pose a risk to the financial system. The government established CIC in 2007 to diversify foreign exchange holdings and seek maximum returns, its website showed. It has registered capital of US$200 billion. China Huarong, which was renamed China CITIC Financial Asset Management last week, was excluded from the merger. The asset manager was taken over by state-owned conglomerate CITIC Group in an overhaul of the troubled asset manager from 2021. – Reuters
BIZ & FINANCE BIZ & FINANCE TUESDAY | JAN 30, 2024 17 Philips to stop selling sleep devices in US THE HAGUE: Under-fire Dutch medical device maker Philips said yesterday it would halt new sales of sleep machines in the US after a series of recalls that continued to weigh on results. The firm trimmed its losses for 2023 compared with the previous year, as it seeks to bounce back from what it had described as a “very difficult” 2022. Philips posted losses of €463 million (RM2.2 billion) over the full year, compared with €1.6 billion in 2022, with chief executive Roy Jakobs hailing “strong results.” “While there is more work to be done, the progress we achieved in a volatile world lays a solid foundation for sustained performance.” Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep. “Resolving the consequences of the Respironics recall for our patients and customers is a key focus area and I acknowledge and apologise for the distress and concern caused,” said Jakobs. The firm said it had clinched a “consent decree” deal with US authorities that consists of a “roadmap” of targets to allow Philips to conform with regulatory requirements. “Until the relevant requirements of the consent decree are met, Philips Respironics will not sell new sleep therapy devices or other respiratory care devices in the US.” It said it had set aside a provision of €363 million in the fourth quarter to settle the deal, which still needs to be finalised and requires court approval. “We are fully committed to complying with the consent decree, which is an important step and provides a clear path forward,” said Jakobs. The firm’s latest woes came in November when the US Food and Drug Administration (FDA) warned that its new “DreamStation 2” machine to help patients sleep risked overheating. The US body said it had received reports “such as fire, smoke, burns, and other signs of overheating” from people using the machine. Philips said it had filed 270 reports of possible malfunctions with the FDA that covered a three-year period. The overheating issue was unrelated to a recall of sleep machines in 2021 that sent the company into turmoil. In that recall, the FDA said foam in the machine could potentially be breathed in or swallowed, posing possible health risks to patients. The recall and provisions for possible legal settlements pushed the firm deep into the red in 2022 and led to the loss of thousands of jobs. The company has already completed the vast majority of the recalls and announced in May that independent tests showed the respirators were “unlikely” to harm patients. – AFP Cement maker Holcim to spin off North American business GENEVA: Swiss construction giant Holcim announced on Sunday it aimed to fully spin off its North America business, which it said could be valued at US$30 billion (RM140 billion) in a US public listing. The company also announced that its board had picked Miljan Gutovic, who currently heads Holcim’s European operations, to replace Jan Jenisch as chief executive officer from May 1. Holcim, one of the world’s largest cement makers, said in a statement that it intends to list its North American business in the United States during the first half of 2025 “with full capital market separation”. It said it would communicate about the final structure later this year, but that the move would create a leading pure play North American building solutions company. Jensich, who has headed Holcim since 2017, will remain on as chairman of the group and will lead the US listing process, the company said. In Sunday’s statement, he explained the spinoff decision, pointing to Holcim’s “superior earnings profile with industry-leading margins and a strong balance sheet”. Holcim is currently the largest cement maker in North America, where it counts 850 sites. Jensich told reporters that once spun off, the new company could be valued at around US$30 billion, adding that Holcim was not planning to hold onto a stake. “We don’t intend that there will be any cross-participation after this has been completed.” “It’s going to be two independent companies,” he said, adding that the idea was to “make two independent champions”. Jenisch highlighted that North America had been Holcim’s best developing business in recent years. “It’s a rock star business,” he said, pointing out that it had been growing sales by more than 20% each year for the past four years. “This is simply too successful to be run as a subsidiary.”– AFP Investors expect Microsoft to outperform Apple SAN FRANCISCO: Microsoft’s early lead in artificial intelligence (AI) has the software heavyweight’s stock market value poised to pull decisively ahead of Apple’s over the next five years, 13 institutional investors unanimously agreed ahead of the tech titans’ quarterly results this week. Microsoft shares have surged 7% so far this year, recently sending its stock market value above US$3 trillion (RM14 trillion) and dethroning Apple as the world’s most valuable company. As of last Friday, the Redmond, Washington software maker’s market capitalisation was a few billion US dollars above Apple’s. Asked which would be more valuable five years from now, all 13 strategists and portfolio managers consulted by Reuters last week said they expect Microsoft to outpace Apple. Share prices and valuations could shift this oSoftware giant likely to grow faster due to early investments in AI week as Microsoft reports its quarterly results today, followed by Apple on Thursday. In the long term, though, all the investors consulted by Reuters said Microsoft’s recent successes in generative AI give it a powerful advantage over Apple. Still, the race between Apple and Microsoft could turn into a race for second place, some said, citing the huge recent gains by Nvidia, whose chips have powered the AI revolution. Microsoft made early investments in ChatGPT-maker OpenAI and is incorporating generative AI technology across its business. AI is likely to benefit Microsoft’s cloud-computing offerings as it competes with Amazon and Alphabet in that market. In its applications business, Outlook now offers users AI help composing e-mails. Microsoft “has more levers to pull in the forms of Azure cloud, gaming, enterprise software, and of course, AI is the most compelling,” said Baker Avenue Wealth Management chief strategist King Lip. “Apple is most reliant on the iPhone, which is a mature market, and the company has yet to detail how it will compete in the AI arms race.” Apple has been quietly incorporating AI into product functions, such as snapping better iPhone photos, but investors will want to hear more AI plans when the company reports its December quarter results. Microsoft’s shares also rallied 57% rally in 2023 thanks to its lead in generative AI. Its stock is now trading at 33 times expected earnings, compared a forward PE of 28 for Apple and around 20 for the S&P 500. “These are quality growth companies ... but in order to warrant these valuations, they need to continue to grow at aggressive clips. You’re going to need increases in productivity, and I think Microsoft is better poised than Apple to do so,” said Horizon Investments head of research Mike Dickson. Nvidia, now the most valuable chipmaker after its shares more than tripled last year, may also be a contender for the world’s most valuable company in the next few years, said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. After hitting record highs last week, Nvidia’s market capitalization reached over US$1.5 trillion making it Wall Street’s fifth most valuable company. “I have told our brokers and clients that Nvidia is like Microsoft in the early 90s and Intel in the early 80s,” Kaufman said. – Reuters Wall Street girds for ugly Boeing earnings as CEO faces scrutiny NEW YORK: Boeing’s 737 MAX 9 planes have begun to fly again after the Jan 5 Alaska Airlines scare, but the episode is expected to weigh on the aviation giant’s finances for the foreseeable future. Both Alaska and United Airlines resumed service on the MAX 9 over the weekend following a three-week grounding after a panel blowout necessitated an emergency landing. The incident has heaped scrutiny on Boeing and CEO David Calhoun. Investors will get an initial appraisal of the financial consequences tomorrow when Boeing releases fourth-quarter results. Besides reporting another annual loss, Boeing is expected to withdraw commercial plane production targets that have been central to its medium-term financial outlook, which has included promises for much profitability in 2025 and 2026. The Alaska Airlines episode is also expected to add to costs, including compensation for airlines. However, these items may not surface until later this year, analysts said. Shares of Boeing have fallen nearly 18% since the troubled Alaska Airlines flight as investors bet on a toughened regulatory environment that slows plane deliveries. Bank of America analysts downgraded Boeing this week, concluding that “materially increased regulatory scrutiny” from the Federal Aviation Administration (FAA) would result in a “forced slowdown”. Boeing 737 MAX-9 planes under construction at a production facility in Renton, Washington. – REUTERSPIC The incident has also added to questions about Boeing leadership in light of sharp criticism of the company from airline customers. Calhoun spent part of last week on Capitol Hill meeting with lawmakers who have also promised public hearings. “They’re going to have to demonstrate change,” said Jeff Guzzetti, a former head of the FAA’s investigation division. Guzzetti said he expects management changes, but added: “I don’t know what that looks like or who.” The MAX 9 planes are beginning to return to service after the FAA last week cleared the jets following detailed inspections. But as part of its MAX 9 announcement, the FAA froze Boeing’s production level for the model until the company demonstrates improvement. That halt likely derails Boeing’s plans to lift MAX production from its 2023 target of around 38 per month to 50 per month in 2025 or 2026 – a boost it hoped would result in US$10 billion in free cash flow. – AFP
BIZ & FINANCE BIZ & FINANCE TUESDAY | JAN 30, 2024 18 Oil rises on escalating tensions in Middle East market participants had been calling for regulators to step in on this front”. Homin Lee, at Lombard Odier, told Bloomberg Television “the very poor sentiment leading to this could potentially open the door for some technical rebound” in Chinese shares. “We’re slightly more cautious because what’s really needed is a change in the inflation outlook for the country and the overall sentiment in the private sector.” Shanghai edged down following news that a Hong Kong court had issued a winding-up order against Chinese developer Evergrande, stoking fresh worries about the property sector and economy. Traders were also awaiting a crucial policy decision by the US Federal Reserve this week and the release of more corporate earnings. While the Fed meeting is not expected to see any move on interest rates, traders hope to hear some guidance from officials on their plans, with a cut in March currently seen as a toss-up. The mostly upbeat day followed another record close for the Dow on Wall Street that came after the central bank’s preferred inflation gauge indicated prices were being brought under control. In Europe, London opened higher while Paris and Frankfurt were down. – Agencies Smoke billowing from British oil tanker MV Merlin Luanda after it was hit by a missile fired by the Houthis in the Gulf of Aden. – AFPPIC/INDIAN MINISTRY OF DEFENCE oEquities boosted by Beijing’s latest move to support troubled markets Watchdog proposes code to combat greenwashing LONDON: Firms that check environmental, social and governance claims made by companies will be asked to follow a proposed new ethics code to help combat greenwashing, the chief of a global standards body told Reuters. Trillions of dollars have flowed into investment funds touting green credentials, but these can be misleading, a practice known as greenwashing. As a result, firms are increasingly being asked to disclose more about their actions on climate change and other issues such as board diversity. Companies in the European Union and globally from this year will have to use new, mandatory disclosures on ESG and climate-related factors in their annual reports for 2024 and onwards. These disclosures will need checking by external auditors as a safeguard against greenwashing. International Ethics Standards Board for Accountants (IESBA) chairman Gabriela Figueiredo Dias said it was proposing revisions and additions to its ethics standards for auditing sustainability information from companies. The IESBA is an independent global body that sets ethics standards for business and other organisations. The standards spell out best practice for verifying a company’s sustainability claims by offering detailed instructions in areas such as accounting for the impact of corporate actions on emissions, relying on outside experts, and identifying and tackling conflicts of interest. “There is nothing more central to sustainable finance than the information that is provided to those who decide to invest or fund projects and businesses.” Dias said the proposed standards, which will be open for public consultation until May, would complement the development of new technical assurance standards from the International Auditing and Assurance Standards Board. “Ethics is the baseline for the whole infrastructure. If you think about greenwashing and misinformation, (it) always has behavioural issues at its root and not technical reporting reasons.” “It’s not because preparers and providers don’t know what they have to report and assure, it’s because there are ethical or independence issues such as conflicts of interest,” she said. Global securities watchdog IOSCO has encouraged the moves by IESBA to update its standards as climate related disclosures under mandatory rules, rather than private sector guidance, are rolled out, making enforcement against greenwashing easier. – Reuters EU threatens to sabotage Hungary’s economy if Orban vetoes Ukraine aid LONDON: The European Union will sabotage Hungary’s economy if Budapest blocks fresh aid to Ukraine at a summit this week, under a confidential plan drawn up by Brussels, the Financial Times reported on Sunday. Brussels has outlined a strategy to explicitly target Hungary’s economic weaknesses, imperil its currency and drive a collapse in investor confidence in a bid to hurt “jobs and growth” if Budapest refuses to lift its veto on the aid to Kyiv, the newspaper reported, citing a document drawn up by EU officials. Hungarian Prime Minister Viktor Orban has become a vocal critic of the bloc’s support for Ukraine and boasted about his ties with the Kremlin since Russia went to war in Ukraine in February 2022. The document declares that “in the case of no agreement in the Feb 1, other heads of state and government would publicly declare that in the light of the unconstructive behaviour of the Hungarian PM . . . they cannot imagine that” EU funds would be provided to Budapest. Hungary’s EU minister Janos Boka said Budapest was not aware of the financial threat, but that the country “does not give in to pressure”. However, Orban’s political director said yesterday that Hungary was open to using the EU budget for a proposed €50 billion euro (RM256 billion) aid package to Ukraine, a major shift in Budapest’s stance from just a few weeks ago. Balazs Orban confirmed on X that Budapest had sent a proposal to Brussels on Saturday showing it was open to using the EU budget for the aid package and issuing common EU debt to finance it if other “caveats” were added. – Reuters Startup raises funds for carbon credit-backed insurance LONDON: An insurance startup founded by three former Allianz executives that aims to guarantee companies buying carbon credits get the permits they’ve paid for has closed the biggest European climate-focused seed funding round in more than a year. CarbonPool raised 10.5 million Swiss francs (RM58 million) in the round led by Heartcore Capital and Vorwerk Ventures, two executives told Reuters, alongside HCS Capital, Revent Ventures and former Allianz board members Axel Theis and Christof Masher. That is the second-biggest climate finance seed funding round globally and the biggest in Europe since the start of 2023, industry tracker PitchBook said. The company’s approach guarantees companies buying carbon credits will receive the permits they have ordered even if the issuer cannot deliver them – for example, if the forest backing a credit is destroyed by wildfires. CarbonPool plans to do this by buying high-quality carbon credits that it will keep on its balance sheet and pay out when needed. Uncertainty on whether permits will be delivered is one issue holding back market growth, co-founder and chief operating officer Nandini Wilcke told Reuters. “(Buyers) are in the uncomfortable position that right now there’s no guarantee that the offsets they buy in advance are actually going to materialise and in the number that they’re expecting and reporting on in their financial disclosures. “Insurance is basically the missing piece.” The approach, currently being assessed by the Swiss regulator, is previously unreported. Data gathered between 2000 and 2023 and shared with Reuters by industry tracker AlliedOffsets shows the average issuance success rate for carbon permits was just 45%. Failure to secure the expected credits can leave corporate buyers short of those needed to meet their climate goals. While companies issuing carbon permits can already insure the assets that back them, no provider currently pays for the value of the carbon credit itself. “If you have a fire, what they pay you back is the amount of money you spent to put those trees in the ground,“ said Peter Fernandez, CEO of Brazilian carbon removal startup Mombak, which is backed by investors including AXA Investment Managers and Bain Capital. “They don’t pay you back the carbon credits that you lost, which is a much more expensive thing. “What we need is ‘you lose carbon credits, you get back carbon credits’.” – Reuters HONG KONG: Oil rose yesterday on fresh Middle East fears as President Joe Biden pledged to retaliate after blaming Iran-backed rebels for a deadly attack on US troops, while equities were boosted by China’s latest move to support its troubled markets. Brent crude futures rose 26 cents, or 0.3%, to US$83.81 a barrel by 0740 GMT (3.40pm in Malaysia) after hitting a session-high of $84.80. West Texas Intermediate crude futures gained 23 cents, or 0.3%, to US$78.24 a barrel after reaching an intraday high of US$79.29 earlier. The drone strike on a base in Jordan – which came days after Yemen’s Huthi group struck a vessel in the Red Sea – ramped up tensions in the region and stoked worries about supplies through the key trade waterway. “The news of three US troops being killed by a drone attack, and Biden saying ‘we shall respond’, will likely dial up the market’s focus on the region,” Andrew Ticehurst at Nomura said. The development comes as Israel presses on with its war against Hamas, adding to investor concerns about a wider conflagration that brings in Iran and the United States. Still, the reports did little to dent equity markets in Asia. There were gains in Hong Kong, Tokyo, Sydney, Seoul, Mumbai, Bangkok, Taipei, Jakarta and Wellington. Traders welcomed news that China would stop the lending of certain shares for short selling as officials try to put a floor under the country’s battered markets. Willer Chen of Forsyth Barr Asia said that while the move would likely have a limited effect on stabilising equities, it was “a good gesture as
LYFE LYFE TUESDAY | JAN 30, 2024 22 BBST Walk transforms into an art market, featuring the skills of local artisans on weekends. – PICS BY AMIRUL SYAFIQ/ THESUN Sepang escapes ARE you yearning for an exhilarating yet budgetfriendly weekend escapade that effortlessly blends heritage sites, contemporary attractions and awe-inspiring natural vistas? Look no further than the vibrant region of Sepang in Selangor, a kaleidoscope of excitement waiting to be explored. The best part? You can now immerse yourself in an extraordinary travel experience through the often-overlooked rural landscapes of Selangor, all made hassle-free and relaxing with the Hop-On, Hop-Off (HoHo) bus service. Get ready for an adventure that promises convenience, excitement and an unforgettable journey through the heart of Selangor. Begin your thrilling journey in the tranquil town of Bandar Baru Salak Tinggi (BBST). Hop on the HoHo Selangor bus to the hidden gem of Lorong Seni, a street art lane reminiscent of the artistic charms of George Town and Ipoh. This alley is a vibrant canvas adorned with enormous murals that narrate Sepang’s rich history and culture. Known as BBST Walk, the lane transforms into an art market on weekends, featuring local artisans showcasing their skills. As you stroll through BBST Walk, immerse yourself in the cultural tapestry depicted on the murals, offering insights into the indigenous way of life. This rural initiative not only enriches your travel experience but also boosts tourism by presenting an array of local products, from intricately crafted handicrafts to traditional delicacies. The BBST Walk comes alive every Saturday and Sunday from eight in the morning to noon, promising a delightful exploration of Sepang’s artistic and cultural heritage. Just a short 30-minute drive from the airport, the HL Dragon Fruit Eco Farm beckons as a haven for dragon fruit enthusiasts. Established in 2011, this agrotourist destination promises an educational journey into the life cycles of dragon fruits. The farm boasts various types of oBus adventures through heritage, nature and art █ BY HAZIQUE ZAIRILL HL Dragon Fruit Eco Farm offers a unique and tasty dragon fruit farm experience. dragon fruit and holds a Malaysia Book of Records title for having the largest dragon fruit-shaped structure in the country. The farm’s restaurant is a culinary delight, offering a diverse menu that includes the creatively crafted nasi lemak buah naga. Infused with dragon fruit seeds, the rice takes on a distinct reddish hue, providing a visual and gastronomic feast. Do not miss the jumbo dragon bun, topped with chicken curry, a must-try for culinary enthusiasts seeking a unique and flavourful experience. For those craving adventure on the water, Jeti Sirip Biru is the go-to destination for both fishing enthusiasts and leisure seekers. Whether you wish to rent a raft house, embark on a deep-sea fishing expedition or enjoy a scenic river cruise, the options are endless. Visitors can also embark on ATV rides available in Sepang. Chop Guan Kee Coffee Shop was established in 1943. Fishing enthusiasts can even opt for a river cruise package, which includes fishing opportunies at the fish breeding centre. The pier offers a variety of packages, including the affordable rental of a boat for four people at RM150. Whether you are an avid angler or simply seeking leisure by the water, Jeti Sirip Biru promises an array of experiences to suit every preference. Hidden in the charming town of Sungai Pelek is Chop Guan Kee, one of Selangor’s best-kept coffee roasteries. This timeless coffee shop, open since its inception and housed in a beautiful wooden structure, is a haven for coffee enthusiasts eager to savour a taste of history and tradition. Founded by Teo Hoh Hwa upon arriving from China, the shop’s current owner, Teo Yu Yin, continues the legacy, preserving the essence of Kedai Kopi Chop Guan Kee. Indulge in their signature Nanyang milk coffee, served over ice, for a refreshing experience that blends tradition and innovation perfectly. For a unique journey through history, tradition and exceptional coffee, Chop Guan Kee is a mustvisit destination, easily accessible with the HoHo Selangor bus. Travelling by bus introduces a fresh and exciting way to explore Sepang. Hopping on and off at each destination allows you to savour the diverse attractions at your own pace. Whether you are an art enthusiast, a culinary explorer, a nature lover or a history buff, Sepang’s hidden gems eagerly await discovery with the HoHo bus service. Get ready for an adventure that promises not only convenience and excitement but also an unforgettable journey through the heart of Selangor. Let the HoHo bus be your mode of transport as you traverse the vibrant landscapes, uncovering the unique charm of Sepang that often goes unnoticed. Embrace the unexpected, make discoveries and create lasting memories as you embark on this thrilling travel escapade through one of Selangor’s many captivating wonders.
LYFE LYFE TUESDAY | JAN 30, 2024 23 I N the heart of Southeast Asia, where the echoes of dense rainforests meet the crescendo of towering peaks and the symphony of vibrant coastlines, Malaysia emerges as a birder’s paradise. The country’s lush landscapes, spanning Peninsular Malaysia, Sabah and Sarawak, serve as a thrilling canvas for birdwatching enthusiasts seeking the extraordinary. With over 800 species soaring through its skies, including unique endemic breeds, Malaysia is a tantalising adventure awaiting discovery. Malaysia’s avian amusement park Malaysia’s avian spectacle unfolds against a backdrop of diverse ecosystems, from the hot mangroves and tropical rainforests to the misty highlands. This kaleidoscope of habitats hosts an impressive array of bird species, transforming Malaysia into a living, breathing aviary. Among the feathered stars are resplendent hornbills, iridescent kingfishers and elusive pittas, each contributing to the symphony of nature. Uncovering nature’s secrets The gateway to Malaysia’s avian marvels lies in Peninsular Malaysia, where the Taman Negara National Park reigns supreme. This ancient rainforest, one of the world’s oldest ecosystems, is a birder’s utopia. Trails wind through the foliage, leading birdwatchers to the elusive Malaysian rail-babbler and the exotic red-bearded bee-eater, creating an atmosphere of suspense and discovery. Fraser’s Hill, a highland retreat, provides a refreshing escape for enthusiasts yearning for cooler climates. Traverse its labyrinthine trails to encounter the regal Malaysian Trogon and the vibrant Sultan Tit. The annual Fraser’s Hill International Bird Race, a thrilling event, elevates birdwatching to a competitive spectacle, adding an adrenaline rush to the joy of spotting rare species. Sabah, Borneo’s avian stage For an immersive avian adventure, birders turn their gaze to Sabah, Borneo’s treasure trove. The Danum Valley Conservation Area, a haven for biodiversity, immerses enthusiasts in a sensory overload of sights and sounds. The enigmatic Bornean bristlehead and the secretive blueheaded pitta make their homes here, captivating observers with their rare beauty. Ascending to the summit of Mount Kinabalu is not only a physical feat but a journey into the realm of montane avian wonders. The Kinabalu Friendly Warbler and the resplendent Whitehead’s Trogon reveal themselves in different elevations, offering a c i n e m a t i c e x p e r i e n c e against the backdrop of Borneo’s highest peak. Adding to Sabah’s allure are its endemic species, found nowhere else on earth. The Bornean falconet, with its diminutive size and striking appearance and the Whitehead’s Spiderhunter, with its long, curved bill and iridescent plumage, are treasures exclusive to the landscapes of Sabah. Sarawak’s captivating song of wings Sarawak, with its untamed landscapes, beckons birdwatchers to delve into its avian wonders. Bako National Park is a mesmerising starting point, promising a spectacle of diversity within its varied ecosystems. The rare Bornean banded pitta and the mystical oriental bay owl play hide-and-seek amid the foliage, adding an air of mystery to the adventure. Venturing into Gunung Mulu National Park, a Unesco World Heritage Site, is akin to stepping into an otherworldly land. Limestone karst formations and vast cave systems become the stage for birding delights, with the Bornean barbet and the elusive dulit frogmouth stealing the spotlight. The park’s dramatic setting elevates the birdwatching experience to a sensory journey through time and nature. Sarawak’s endemic species add an extra layer of excitement to the birding adventure. The Bornean peacock-pheasant, a vividly coloured and elusive bird and the Bornean wren-babbler, a tiny and cryptic species, are among the rare gems awaiting discovery in Sarawak’s untamed wilderness. Conservation in flight As the allure of birdwatching grows, so does the responsibility to ensure its sustainability. Conservation efforts in Malaysia focus on preserving crucial habitats and raising awareness about the necessity of protecting the country’s diverse avian species. Birdwatchers are encouraged to be ambassadors for conservation, Malaysian rail-babler - PIC BY FRANCESCO VERONESI minimising disturbances to wildlife Red-bearded bee-eater – 123RF Bornean falconet, endemic to Borneo, is the smallest species of falcon. - PIC BY CHEONGWEEI GAN Dulit frogmouth, also endemic to Borneo. – PIC BY JJ HARRISON Oriental bay owl – JJ HARRISON Bornean banded pitta – JJ HARRISON Malaysia’s feathered gems oExploring bird species across regions █ BYACE EMERSON and actively supporting local initiatives. In the closing act of a day spent birdwatching in Malaysia, the sun dips below the horizon, leaving the sky painted in hues that mirror the vibrant plumage of the day’s avian discoveries. Malaysia’s untamed landscapes, from the ancient rainforests of Taman Negara to the wild frontiers of Sabah and Sarawak, weave a narrative of enchantment for those who seek it. The echoes of calls, the iridescence of feathers and the thrill of spotting rare species become indelible memories, etching the magic of Malaysia’s winged inhabitants deep into the hearts of those who have ventured into this avian paradise. The endemic birds, exclusive to each region, further enrich the tapestry of Malaysia’s avian wonderland, making it a destination that beckons birders to return time and again. Bornean bristlehead - FB/STICKY RICE TRAVEL