ceoMorningBrief friday, february 3, 2023 Issue 517/2023 www. theedgemarke ts. com Adani contagion spreads as Indian benchmark nears correction p18 HOME: Unity government did not order MACC action against Bersatu, says Anwar p2 Heineken Malaysia rises to record high on hopes of return of Chinese tourists p4 Creador pares down stake in CTOS to 14.25%, raising RM413 mil p6 WORLD: BOE raises key rate to 4% saying more hikes may be needed p17 Funds rush to emerging-Asia bond sales on bet rates near peak p25 Report on Page 3 reuters Spanish Constitutional Court rejects Sulu Sultanate self-proclaimed heirs’ appeal against annulment of arbitrator
friday february 3, 2023 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] Unity government did not order MACC action against Bersatu, says Anwar Bersatu to ask MACC to unfreeze bank accounts, says Muhyiddin KUALA LUMPUR (Feb 2): The Malaysian Anti-Corruption Commission’s (MACC) move to freeze Parti Pribumi Bersatu Malaysia’s bank accounts was the anti-graft body’s independent action, according to Prime Minister Datuk Seri Anwar Ibrahim. At a post-Cabinet meeting press conference on Thursday, Anwar told the media that his administration had never instructed the commission to freeze Bersatu’s accounts or take action against the opposition party. “What happened was two things: firstly, reports were made to the [police] and MACC on the use of funds by Bersatu; secondly, in carrying out my job at the Finance Ministry, I found projects that involved high expenditures that did not go through a tender process,” he said, listing the Jana Wibawa project as well as a flood mitigation project. A n w a r s a i d Bersatu’s accounts were frozen to facilitate the MACC’s investigation under the Anti-Money Laundering, Anti-Terrorism Financby Izzul Ikram theedgemarkets.com Bernama Note: Dear readers, there will be no CEO Morning Brief on Tuesday (Feb 7, 2023) as we are taking a break for Thaipusam. We will be back on Wednesday (Feb 8, 2023). For the latest news during the holidays, check out https://www.theedgemarkets.com/. ing and Proceeds of Unlawful Activities Act 2001 (AMLA). He added that the commission found more than RM300 million in Bersatu’s accounts, and called for the party’s leaders to explain how it accumulated the funds in such a short period of time. “This is the task of the MACC, and only then will the commission produce their findings to the Attorney General’s Chambers,” he added. Anwar insisted that enforcement agencies as well as the judiciary remain independent and said that it was irresponsible for Bersatu to accuse the government of using the MACC as a political tool. He also maintained that the government’s stance was that the authorities should probe and take action against any party suspected of being involved in wrongdoing, whether government or opposition. On Wednesday, MACC chief commissioner Tan Sri Azam Baki confirmed that the commission had frozen several bank accounts belonging to Bersatu in accordance with an investigation under AMLA. Bersatu secretary general Datuk Seri Hamzah Zainudin then accused the unity government of using the MACC to damage the credibility of Bersatu and Perikatan Nasional. KUALA LUMPUR (Feb 2): Parti Pribumi Bersatu Malaysia (Bersatu) will send a letter to the Malaysian Anti-Corruption Commission (MACC) on Thursday (Feb 2) to request the latter to lift the freeze order on the party’s bank accounts. Bersatu president Tan Sri Muhyiddin Yassin said lifting the order is crucial to enable the party’s administration to run smoothly, and for its financial commitments to be paid on schedule. “When our accounts are frozen, we don’t have funds to pay administrative salaries even for one month. And now they (the MACC) say the accounts will be frozen for three months, which will affect the party’s administration. “Therefore, we request that once the MACC completes its investigation and finds no wrongdoing or abuse of power, it will lift the order as soon as possible,” he told a press conference after the Perikatan Nasional Members of Parliament’ retreat here on Thursday. Elaborating, Muhyiddin, who is also the Pagoh MP, said the MACC’s move had also affected Bersatu’s preparation for the upcoming six state elections. On Wednesday, MACC chief commissioner Tan Sri Azam Baki confirmed that several bank accounts belonging to Bersatu had been frozen to assist in an investigation. It is understood that the action is related to the MACC’s investigation into alleged misappropriation of RM600 billion in funds used by the government when the country was dealing with the Covid-19 pandemic. home
friday february 3, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): The Malaysian government made further gains in its legal battle against the self-proclaimed “heirs” of the Sultan of Sulu, with the latest development being the Spanish Constitutional Court rejecting the claimants’ appeal against the annulment of the appointment of the dispute arbitrator, Gonzalo Stampa. This reinforced a decision on June 29, 2021 by the High Court of Justice of Madrid (HCJM), which issued a ruling to annul the judicial appointment of Stampa to act as an arbitrator for the dispute between the Malaysian government and a group of individuals styling themselves as the “heirs” of the Sultan of Sulu. “The government has just received official confirmation that the constitutional appeal filed by the claimants has been rejected and that, as a result, the annulment of Mr Stampa’s appointment (which was already final and binding) has also been confirmed by the Spanish Constitutional Court,” said de-factor law minister Azalina Othman Said on Thursday. The Spanish Constitutional Court rejected the claimants’ constitutional appeal on the grounds that the claimants had withdrawn their claim to appoint an arbitrator following the annulment decision by HCJM in June 2021, said Azalina, minister in Prime Minister’s Department (Law and Institutional Reform). “As a result, they had voluntarily abandoned the proceedings which served as the basis for their constitutional appeal. “This decision confirms the legal position that Malaysia has asserted since the dispute began, effectively ending the claimants’ judicial strategy in Spain,” said the Pengerang MP. The HCJM was the Spanish court that initially appointed Stampa in 2019, and had in June 2021 retroactively invalidated his appointment and nullified all his actions as a purported arbitrator, including his alleged “preliminary award” that he had rendered in favour of the claimants in Madrid. Azalina said the HCJM’s decision was “final, binding and directly enforceable” and could only be subject to an extraordinary constitutional appeal before the Spanish Constitutional Court if exceptional circumstances were met. “In fact, the claimants complied with the annulment decision of the HCJM and took steps to appoint a different arbitrator. As a consequence, they recognised that Mr Stampa was not an arbitrator,” she said. Although the claimants filed a constitutional appeal seeking to overturn the HCJM’s decision by Chester Tay theedgemarkets.com Spanish Constitutional Court rejects Sulu Sultanate self-proclaimed heirs’ appeal against annulment of arbitrator on Nov 5, 2021, the appeal did not stay the effects of the annulment decision, said Azalina. As a result of the annulment of judicial appointment in Spain, Azalina said Stampa lacked the authority to act as an arbitrator and should have immediately put an end to the arbitration proceedings against the Malaysian government. “Instead, and in open defiance of the June 29, 2021 decision of the HCJM (the same court that had initially appointed him as an arbitrator), Mr Stampa nevertheless chose to deliver an illegal and purported ‘final award’ granting the claimants US$14.92 billion in compensation for the territory of Sabah,” she said. An ex-parte (single party) arbitration proceeding was initiated by the claimants and held in Paris, but the French courts have since stayed the enforcement of the purported US$14.92 billion final award rendered by Stampa in France, pending the outcome of Malaysia’s action to set it aside, on the basis that enforcement may likely threaten Malaysia’s sovereignty over the territory of Sabah. This came shortly after the Luxembourg courts had last month set aside the claimants’ request to enforce Stampa’s two purported awards. “The Spanish courts have now further confirmed the annulment of Mr Stampa’s unlawful appointment as an arbitrator, finding that he never had any legal authority to act in that capacity nor to issue any awards and that therefore they are null and void,” said Azalina. “This recent decision of the Spanish Constitutional Court vindicates the government’s policy to vigorously defend Malaysia in every court and forum, exercising all its powers, rights and resources to ensure that Malaysia’s interests, sovereign immunity and sovereignty are protected at all times,” she added. Stampa made two purported arbitral awards in March last year, claiming that Malaysia had reneged on a 144-year-old agreement signed in 1878 by the then Sulu Sultan that granted sovereign rights to parts of Sabah today, in return for an annual token payment of RM5,300. Malaysia, which had been paying the sum, halted the payment in 2013 during Datuk Seri Najib Razak’s administration following the armed incursion of Lahad Datu by more than 200 militants believed to be linked to the Sulu Sultanate. Najib’s government claimed the invasion caused a breach of the 1878 agreement, which the heirs disputed. Putrajaya refused to recognise the legitimacy of the purported arbitration and had sought legal remedies to invalidate Stampa’s appointment and his arbitral awards. This decision confirms the legal position that Malaysia has asserted since the dispute began, effectively ending the claimants’ judicial strategy in Spain.”
friday february 3, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): Pestech International Bhd has aborted its plan to raise RM6.5 million via the second tranche of a private placement, as the identified investors had failed to complete the acceptance within the stipulated timeframe. The company had proposed to issue 22.8 million new shares at 29 sen apiece under the second tranche, representing 2.4% of Pestech’s total number of issued shares. In a filing to Bursa Malaysia on Thursday (Feb 2), the electrical power technology company said it would not seek an extension of time when the approval from Bursa Securities to complete the entire private placement expires on Feb 10. Under its first tranche of the private placement, completed in March 2022, Pestech raised RM20.3 million through the issuance of 36.8 million shares that represented 3.87% of the company’s total number of issued shares. The issue price was fixed at 55 sen per share. On Monday, Pestech confirmed that its executive chairman Lim Ah Hock and managing director-cum-group chief executive officer Lim Pay Chuan had been charged in court for allegedly abetting the misappropriation of RM10.6 million related to its wholly owned subsidiary Pestech Technology Sdn Bhd. The duo had claimed trial in respect of all the charges against them, the company had said in a filing. Shares of Pestech fell 19.35% or six sen to close at 25 sen on Thursday, valuing the company at RM248.06 million. Read also: Pestech shares plummet by 15% after two top execs charged with misappropriation of funds Pestech aborts second tranche of private placement KUALA LUMPUR (Feb 2): Brewery stock Heineken Malaysia Bhd’s shares hit an alltime high of RM29.50 on Thursday morning after rising by as much as RM1.50 or 5.36% as investors are betting that China’s reopening will bode well for the stock. In anticipation of the return of Chinese tourists, Heineken topped the gainer list on Bursa Malaysia on Thursday, with a closing price of RM29 — up RM1 or 3.57%, valuing the group at RM8.76 billion. Since early this year, the stock has gained 15.1%. And over the past year, it has recorded a whopping 41.33% gain from RM20.52 on Feb 3, 2022. Meanwhile, Carlsberg Brewery Malaysia Bhd — the third top gainer on the local bourse — also jumped as much as 66 sen or 2.8% to RM24.20 in morning trade, compared with its previous closing price of RM23.54. It closed at its intra-day high of RM24.20, bringing the company a market capitalisation of RM7.4 billion. The stock has increased 20.28% from RM20.12 on Feb 3, 2022. Of the 13 analysts covering Heineken, 11 have ‘buy’ calls, while the remaining two have ‘hold’ recommendations. The average 12-month target price for Heineken is RM29.64, with HSBC’s target price of RM33 being the highest. For Carlsberg, there are eight ‘buy’ calls, and five ‘hold’, with a 12-month average target price of RM26.59. Heineken’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) doubled to RM108.74 million from RM51.02 million in the same period last year, mainly driven by improved revenue growth, besides efficient cost and value initiatives. This also lifted its nine-month net profit by 105.69% to RM308.19 million from RM149.83 million in the same period a year ago. Carlsberg also delivered stellar financial results, with its net profit for 3QFY22 climbing almost three-fold to RM76.39 million from RM25.98 million in the same period last year, contributed by higher contributions from both Malaysian and Singaporean operations. For the cumulative nine-month period, its net profit almost doubled to RM256.93 million from RM129.57 million. In a recent note, CGS-CIMB Research expects the reopening of China’s economy and international borders from Jan this year to bode well for consumer counters. Chinese tourists are Malaysia’s third-largest source of international arrivals and second-highest spending tourists in 2019. Hence, the expected gradual return of China tourists is set to have positive spillover effects on Malaysian companies with overseas exposure, the research outfit added. Another tailwind for the consumer sector, the research house pointed out, is the easing of input costs due to lower commodity prices as global supply chains gradually return to normalcy, leading to higher production volume, which could improve the supply-demand dynamics. “Given this, coupled with declining freight rates, we believe consumer companies would benefit, especially food and beverage manufacturers and retailers, in terms of margins, as they have also raised prices over the past year,” it said. While the research house expects input costs to ease in 2023, it cautioned that the impact could be offset by rising operating costs and weaker consumer spending power. Hence, the research house maintained a ‘neutral’ call on the overall consumer sector. Heineken Malaysia rises to record high on hopes of return of Chinese tourists by Justin Lim theedgemarkets.com by Priyatharisiny Vasu theedgemarkets.com Carlsberg Brewery (M) Bhd Source: Bloomberg Jan 31, 2022 Feb 2, 2023 RM24.20 RM19.22 RM 15 20 25 Heineken (M) Bhd Source: Bloomberg Jan 31, 2022 Feb 2, 2023 RM29.00 RM19.56 RM 15 20 25 30
friday february 3, 2023 5 The E dge C E O m o rning brief
friday february 3, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): Oppstar Bhd, an integrated circuit design service provider, has signed an underwriting agreement with Affin Hwang Investment Bank Bhd (AHIBB) in conjunction with its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Bhd. In a statement on Thursday (Feb 2), the group said the IPO involves a public issue of 165.48 million new shares, which represents approximately 26% of its enlarged issued share capital of 636.2 million shares upon listing. Of the 165.48 million shares, 31.81 million shares will be made available to the Malaysian public; 22.27 million shares for application by eligible directors, employees and business associates; 31.87 million shares for selected investors via private placement to selected investors; and 79.53 million shares to identified Bumiputera investors approved by the Ministry of International Trade and Industry of Malaysia via private placement. AHIBB is the sole underwriter of the 54.08 million shares made available for application by the Malaysian public and eligible directors, employees and business associates of the group. Oppstar’s executive director/chief executive officer Ng Meng Thai said, “The IPO will provide funding for our expansion and enable the public to participate in the group’s growth. We aim to increase our presence in the IC (integrated circuit) design industry in the region and create a greater impact on the semiconductor supply chain.” The officer-in-charge of AHIBB, Ng Meng Wah, added, “With its experienced management team, we believe Oppstar will grow along with the technological trend. We thank Oppstar for the opportunity to be involved in this exciting IPO exercise and we look forward to supporting Oppstar in its future endeavours.” Oppstar provides integrated circuit design services covering front-end design, back-end design and complete turnkey solutions to its customers in the region and works closely with multinational companies in the semiconductor industry. ACE Market-bound Oppstar signs underwriting agreement with Affin Hwang IB KUALA LUMPUR (Feb 2): Private equity firm Creador has further pared down its shareholding in CTOS Digital Bhd to 14.25% from 26.6% as on Dec 19, by disposing of 284.81 million shares via Inodes Ltd on Thursday (Feb 2), raising RM413 million or US$97 million. Creador previously sold 38 million shares on Dec 19, reducing its stake to 26.6% from 28.2% as on Nov 1. CTOS’ stock exchange filing showed that following the latest disposal — undertaken through a placement — Creador is left with 329.13 million shares in hand. Creador said in a statement that the placement shares were priced at RM1.45 each, representing a 6% discount to the stock’s closing price of RM1.54. The equity firm said the placement received strong demand from domestic and foreign institutional investors, resulting in the deal being upsized to satisfy demand. Creador pares down stake in CTOS to 14.25%, raising RM413 mil by Chester Tay theedgemarkets.com by Isabelle Francis theedgemarkets.com “Creador, which has been an investor in CTOS since 2014, has been impressed with the company’s strong and sustainable performance and remains highly committed to supporting CTOS Digital in its pursuit of growth and in particular, its focus on the opportunities that are emerging with the rise of the digital economy,” it added. CTOS was listed in July 2021 and the stock rose to a record high of RM2.03 by October the same year. However, it lost 20.5% in value in 2022. Shares of the credit-reporting agency rose at the start of this year, climbing 11% to a 10-month high of RM1.57 on Jan 26, before paring most of the gains over the past few trading days. On Thursday, the counter closed eight sen or 5.2% lower at RM1.46, just slightly above the RM1.42 price as at end-2022. CTOS has a market capitalisation of RM3.37 billion. From left: Oppstar executive director/chief technology officer Cheah Hun Wah, Oppstar executive director/CEO Ng Meng Thai, Affin Hwang IB officer-in-charge Ng Meng Wah and Affin Hwang IB chief financial officer Mustafa Shafiq Razalli.
friday february 3, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): IHH Healthcare Bhd’s 90%-owned Acibadem Saglik Yatirimlari Holding AS is buying Kent Health Group, which operates the largest private hospital in Türkiye’s third largest city Izmir. The 340-bed hospital has an attached cancer centre and two medical centres in the city, said IHH in a stock exchange filing, without disclosing the acquisition price. Izmir Kent Hospital will be Acibadem’s 19th hospital in Türkiye and 25th globally. The number of medical centres in Acibadem’s network will increase to 16 with this acquisition. The transaction is expected to close during the first quarter this year following the completion of necessary regulatory approvals, said IHH. Acibadem’s founder and chairman Mehmet Ali Aydinlar said this transaction aligns with the group’s growth strategy in the country. “We are pleased to be providing our services to the community by adding Kent Health Group, a prominent player in Izmir’s private healthcare arena, to our portfolio,” he said. Kent chairman Matthew Strassberg said the acquisition by Acibadem validates the strategic value in Kent and ensures the continuity of focus on medical and service excellence for the benefit of patients and other stakeholders. Strassberg is also a partner at MidEuropa, which currently manages Kent. “Over the past decade, MidEuropa has actively supported Kent’s management team as we invested to more than double Kent’s capacity, including the greenfield construction of a state-of-the-art oncology centre and the opening of a new satellite facility,” Strassberg said. Shares of IHH closed three sen or 0.5% higher at RM5.95 on Thursday (Feb 2), giving the group a market capitalisation of RM52.4 billion. IHH Healthcare’s Acibadem buys 340-bed hospital in Türkiye’s third largest city KUALA LUMPUR (Feb 2): Tasco Bhd’s net profit more than doubled to RM20.44 million for the third quarter ended Dec 31, 2022 (3QFY2023) from RM8.81 million a year earlier, helped by a reduction in non-operating and general expenses to RM5.6 million from RM22.8 million at the support division. Earnings were affected in 3QFY2022 due to the write-off of a warehouse building KUALA LUMPUR (Feb 2): Gamuda Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak) and Kumpulan Perangsang Selangor Bhd (KPS) have provided an additional month of warranty claim period until end-February for Amanat Lebuhraya Rakyat Bhd (ALR), in response to the demise of ALR chairman Tan Sri Azlan Mohd Zainol. Gamuda, Litrak and KPS previously sold four highways — Shah Alam Expressway (Kesas), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT), Lebuhraya Damansara Puchong (LDP) and Stormwater Management and Road Tunnel Project (SMART) — to ALR at an enterprise value of RM5.48 billion. The warranty claim period was supposed to expire on Jan 31, 2023, when payment of net retention sum was also due. ALR requested the extension following the untimely demise of Azlan on Jan 12, resulting in its board to be inquorate pursuant to its constitution. “As a result, the ALR board is not in a position to decide on the warranty claims until a new shareholder or director is appointed,” filings by Gamuda, Litrak and KPS showed. Hence, the three companies said they are agreeable to provide an indulgence of an additional month up to Feb 28 for ALR to finalise and submit their claims, if any, against vendor’s warranties. Shares of Gamuda closed eight sen or 2% lower at RM3.84 on Thursday, valuing the construction giant at RM10.06 billion. Litrak settled half a sen or 1% lower at 51.5 sen, giving it a market capitalisation of RM278.93 million, while KPS closed one sen or 1.4% higher at 70.5 sen, valuing it at RM378.86 million. at the Shah Alam Logistics Centre (which was demolished to make way for the reconstruction of a new four-storey modern warehouse) and the write-off of property, plant and equipment damaged by floods, which amounted to RM15.9 million. Quarterly revenue decreased 13.71% to RM392.69 million from RM455.09 million in 3QFY2022, mainly because revenue from the international business solutions (IBS) segment declined 37.2% to RM184.9 million from RM294.4 million as freight rates in the market declined. However, this was partially offset by an increase in revenue from the domestic business solutions (DBS) segment to RM207.8 million from RM160.7 million. For the cumulative nine months, Tasco’s net profit grew 71.36% to RM69 million from RM40.27 million, while revenue increased 26.36% to RM1.34 billion from RM1.06 billion. Going forward, the group is cautiously optimistic about its outlook for FY2023, particularly with regard to the impact of inflationary pressures on operating costs, labour shortages and the risk of recession or stagflation. Tasco’s shares closed 2.5 sen or 2.7% lower at 90 sen on Thursday (Feb 2), giving the logistics solutions provider a market value of RM716.13 million. Tasco’s 3Q net profit more than doubles to RM20 mil Gamuda, Litrak, KPS provide one more month for ALR to file warranty claims after Azlan Zainol’s passing by syafiqah salim theedgemarkets.com by chester tay theedgemarkets.com by chester tay theedgemarkets.com
friday february 3, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): Asdion Bhd’s independent auditors Messrs CAS Malaysia PLT have issued an unmodified audit opinion with a material uncertainty related to going concern for Asdion’s statements for the financial year ended Sept 30, 2022 (FY2022). Based on the auditors’ report, the group’s current liabilities have exceeded its current assets by RM22.79 million. As of Sept 30, 2022, the firm said, the group had suffered an accumulated loss of RM6.09 million. “These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter,” CAS Malaysia said, drawing attention to Note 2.7 of Asdion’s financial statements. It said the ability of Asdion to operate as a going concern is dependent on the successful outcome and implementation of the current business plans to generate sufficient cash in the future to fulfil the group’s obligations as and when it falls due. “The financial statements of the group do not include any adjustment relating to the amount and classification of assets and liabilities that might be necessary should the group be unable to continue as a going concern,” CAS Malaysia said. Under the key audit matters, the firm highlighted that the net carrying amount of goodwill of Asdion amounted to RM3.19 million as of Sept 30, 2022, about 8% of the group’s total assets. Asdion’s independent auditors flag going concern over FY2022 financial statements KUALA LUMPUR (Feb 2): KNM Group Bhd, which recently defaulted on debts amounting to over RM420 million, is in talks with all its creditors to resolve the settlement of the monies due to them from the monetisation of non-core assets and sale of Borsig GmbH. It said plans will be “accelerated” to monetise the assets under a disposal process based on a non-exclusive deal structure, which will also naturally lead to higher cash values on disposal. In a filing to Bursa Malaysia on Feb 1, KNM said: “CGIF (Credit Guarantee and Investment Facility), TA (TransAsia Private Capital Ltd)/Danos [Ltd] and all other lenders (including Bank of China) are working in close cooperation with the board of directors and KNMG (KNM Group) newly appointed GCEO Ravi Balasingham towards achieving a mutually acceptable resolution of the settlement of the monies due to the respective lenders from the monetisation of non-core assets and IPO/sale of Borsig GmbH, as previously announced.” KNM said it has been in continuous close discussion with the respective lenders on various measures to address the above-mentioned events of default. “The repayments will be dealt with, addressed and/or restructured under the proposed scheme of arrangement as announced on Dec 16, 2022,” it added. In a separate filing, KNM said the monetisation of assets is part of its regularisation plan as required under the Listing Requirements (LR) and it has approximately nine months to submit its regularisation plan under Practice Note 17 of the LR to the relevant authorities for approval. KNM announced last December it defaulted on its loans totalling about RM416.8 million borrowed through three of its indirect wholly owned subsidiaries following the failed sale of Borsig GmbH. The subsidiaries in question are Peterborough Green Energy Ltd — which was granted a loan of US$68.5 million (RM315.65 million) by Danos Ltd, as well as KNM Renewable Energy Sdn Bhd (KNMRE), which received a loan of US$13 million (RM57.17 million), and Splendid Investments Ltd, which was granted a loan of US$10 million KNM in talks with creditors to ‘accelerate’ monetisation of assets to resolve settlement by Isabelle Francis theedgemarkets.com by hailey chung theedgemarkets.com (RM44 million). The loans KNMRE and Splendid Investments received were from TransAsia Private Capital Ltd. KNM had stated it had received an originating summons filed by TA Private Capital Security to enforce its rights to effect the transfer of 45% shares in KNM Process Systems Sdn Bhd that was charged by KNM as security for the US$10 million loan granted by TransAsia Private Capital to Splendid Investments. KNM reported it had earlier agreed with the lenders Danos and TransAsia Private Capital that it would utilise part of the RM1.03 billion proceeds expected to be raised from the proposed disposal of Borsig — which had fallen through — to repay the debts. Later in the same month, KNM said it has triggered another default, this time on the principal repayment of US$3.4 million (RM15.04 million) — with an outstanding interest of US$16,104 — due to Bank of China (Malaysia) Bhd. The default, via its wholly owned KNM Capital Labuan Ltd, occurred on Dec 26, said KNM in a Bursa filing on Dec 27. It had originally planned to use part of the proceeds from the proposed disposal of Borsig to pay the instalment payments of the credit facilities that totalled US$8 million. But KNM announced on Dec 1 that the deal had been called off as the relevant conditions precedent had not been fulfilled, despite the longstop date for share sale and purchase agreement for the disposal being extended various times. CAS Malaysia also said the deferred expenditure of the group amounted to RM26.72 million, about 67% of the total assets which relate to expenditures incurred for Asdion’s proposed development project in Tumpat, Kelantan. In light of the flagged going concern, Asdion said the group had undertaken more effective cost management measures to control its operational expenses through regular review of its operational cost structure. It said the operational expenses included minimising administrative expenses consisting of rental, utilities and transportation costs. Asdion added that it undertook cost-cutting measures such as reducing its office rental through the relocation of its corporate office in October 2022. It said the relocation saved approximately RM50,000 in annual office rental, which the group can use for its business operation, as well as working capital and administrative expenses. Read the full story
friday february 3, 2023 9 The E dge C E O m o rning brief Rabbit, bullorbear? in insights. Public Symposium 2023 On local, regional, global market views and bringing sustainability closer to home Keynote Speakers Doreen Choo Head of Investment Eastspring Investments Berhad Tan Ming Han Head of Investment Eastspring Al-Wara’ Investments Berhad Ooi Boon Peng Vice Chairman Eastspring Investments Singapore Panel Speakers : Sustainability at home Clara Wan Founder and CEO Graze Market Nik Suzila Co-Founder Kloth Cares Justin Cheah Marketing Director Kechara Soup Kitchen Moderator Wong Shou Ning Business Radio Presenter Date: 18 February 2023 (Saturday) Time: 9.30 am – 12.00 pm Venue: Grand Ballroom, Tropicana Golf & Country Resort Advertisement Register here
friday february 3, 2023 10 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): Serba Dinamik Holdings Bhd (SDHB) and three related companies on Thursday (Feb 2) applied for an ad-interim stay (temporary stay) of the winding-up order granted by the High Court last month against them. The ad-interim stay is a stay of the winding-up order, pending the High Court’s hearing of their motion for a permanent stay, which was filed on Jan 27, pending the hearing of their appeal to the Court of Appeal against last month’s decision. Besides SDHB, the other companies which the High Court ordered to be wound up are Serba Dinamik Sdn Bhd, Serba Dinamik International Ltd and Serba Dinamik Group Bhd. The syndicated lenders and bilateral lenders comprising six financial institutions and other banks were opposing the ad-interim stay application as submissions were heard on Thursday. Hence, judge Ahmad Murad Abdul Aziz fixed Feb 10 for a decision on the companies’ ad-interim application for a stay of his Jan 10 decision on the winding-up. Furthermore, Ahmad Murad fixed March 10 to hear their motion for a permanent stay of his order, pending the hearSerba Dinamik and three subsidiaries apply for temporary stay pending hearing of permanent stay of winding-up order KUALA LUMPUR (Feb 2): Lotte Chemical Bhd (LCT) is unlikely to pay any final dividends for the financial year ended Dec 31, 2022 (FY22), or any dividends for FY2023 after posting its largest full-year loss last year. CGS-CIMB in a note on Thursday maintained its “reduce” call on LCT as it expects average selling prices of naphtha in FY23 to be lower year-on-year due to significant global capacity additions and weak demand. As such, it expects LCT to continue making losses in FY2023. It had raised its end-2023 target price (TP) RM1.04, based on its trough 0.2 times price to book value(P/BV) multiple, given last year’s tough dynamics to extend into this year. CGS-CIMB noted that LCT paid out 13.98 sen in special dividend in Dec 2022 as it had excess cash, triggering a 24% share price rally in Nov 2022. However, the research house said of LCT’s RM1.3 billion gross cash balance at end-Dec 2022, only RM700 million is now left after injecting RM600 million into its Indonesian subsidiary, PT Lotte Chemical Indonesia (LCI), to fund the naphtha cracker capital expenditure. “LCI will also take on new project debt this year, causing LCT to lose its net cash position from FY23F onwards. In summary, LCT is unlikely to pay interim, final, or special dividends in FY23F, in our view,” said CGS-CIMB. Meanwhile, KAF Equities has widened the projection of FY2023’s losses to RM292.2 million (from RM283 million) and cut FY2024 earnings by 74% to account for lower product spreads (particularly assuming slower improvement in product prices 2024 onwards). The research house’s sum-of-parts valuation TP is reduced to RM1.04 (from RM1.10) as a result. KAF believes the near-term headwinds would persist into the first half of 2023 (1H2023) and a clearer trajectory could only be seen earliest in 2H23. Lotte Chemical unlikely to pay final dividends in FY22, dividends for FY23 after recording largest annual losses by Isabelle Francis theedgemarkets.com by hafiz yatim theedgemarkets.com LCT posts largest annual losses in FY22 CGS-CIMB noted that LCT posted its largest quarterly loss in its history in 4Q22 and largest annual loss in FY22. It said LCT’s 4Q22 core net loss was RM317 million, a record quarterly loss for LCT. Meanwhile, LCT’s 2H2022 core net loss of RM607 million was wider than the 1H2022 core net loss of RM9 million, leading to a FY2022 core net loss of RM515 million, the widest since it was relisted in 2017. “This was caused by rapid h-o-h [halfon-half] selling price decline due to reduced consumer demand for goods, as a result of high inflation and rising interest rates. Even though naphtha feedstock costs declined h-o-h in 2H22, the declines in selling prices were faster, leading to margin squeeze. “LCT responded by cutting the production to an average of 71% utilisation in 2H2022 vs. 83% in 1H22, with 3Q2022 plant turnarounds also contributing to weak 2H2022 utilisation,” said the research house. CGS-CIMB said even with lower utilisation, the weak price spreads caused LCT to make RM500 million Ebitda loss in 2H22, versus. RM175 million Ebitda profit in 1H22. LCT’s share of loss from its US associate that produces mono ethylene glycol (MEG) was RM22million in FY22 vs. share of profit of RM120million in FY21, as MEG prices fell in the face of rising ethane costs in 2022. ing of the companies’ appeal to the Court of Appeal. The Edge reported on Monday (Jan 30) that the Serba Dinamik companies had filed a stay of the winding-up order, pending their appeal to the Court of Appeal. In their affidavit in support of the motion for a stay sighted by The Edge, Serba Dinamik and the subsidiaries said the winding-up order should be deferred, pending the disposal of the appeal to the Court of Appeal, and the appeal against their application to seek an adjournment of the winding-up hearing. They said if a stay of the winding-up order is not granted, the four companies would suffer irreparable damage, which would see their contracts being terminated upon winding up, and this, they claimed, is irrecoverable. “The applicants’ appeal would be rendered academic, given that there is no business left for the applicants,” the affidavit read. On Jan 10, Ahmad Murad allowed the applications by six financial institutions and some of Serba Dinamik’s creditors to wind up the four companies. The applications by Standard Chartered Saadiq Bhd, HSBC Amanah Malaysia Bhd, AmBank Islamic Bhd, MIDF Amanah Investment Bank Bhd, United Overseas Bank (Malaysia) Bhd and Bank Islam Malaysia Bhd were over the non-payment of loans amounting to RM1.7 billion out of a total sum of some RM5 billion owed. They said the RM5 billion sum included the US$500 million (RM2.13 billion) sukuk on which it had defaulted.
friday february 3, 2023 11 The E dge C E O m o rning brief home news In brie f Kerjaya Prospek wins contract worth RM135 mil from BBCC Development KUALA LUMPUR (Feb 2): Construction outfit Kerjaya Prospek Group Bhd announced that its 49%-owned subsidiary Kerjaya Bina BMK Sdn Bhd has accepted a letter of award (LOA) from BBCC Development Sdn Bhd — a joint venture company between Employees Provident Fund, UDA Holdings Bhd and Eco World Development Group Bhd. The award — valued at RM135.4 million — is for the design and build contract work of the main building for the proposed development project off Jalan Hang Tuah/ Jalan Pudu in Kuala Lumpur, said a press statement on Thursday (Feb 2). The project is expected to commence on March 1, 2023 for 36 months. It includes the design and build contract of main building works for a 31-storey block of service apartments, basement and podium, consisting of a seven-storey car park, main lobby and multi-purpose hall. — by Sufi Muhamad Velesto bags jack-up drilling rig services worth RM59 mil from ROC Sarawak KUALA LUMPUR (Feb 2): Velesto Energy Bhd announced that its wholly owned subsidiary Velesto Malaysian Ventures Sdn Bhd had received a letter of award from ROC Oil (Sarawak) Sdn Bhd for the provision of jack-up drilling rig services estimated at US$14 million (RM59.29 million). According to a bourse filing on Wednesday (Feb 1), Velesto Malaysian Ventures’ wholly owned subsidiary Velesto Drilling Sdn Bhd is estimated to be drilling three firm wells from Jan 25 to Feb 25 this year. “The group will assign its Naga 2 for this contract. Naga 2 is a premium independent-leg cantilever jack-up rig, with drilling depth capability of 30,000 ft and a rated operating water depth of 350 ft,” according to the filing. — by Sufi Muhamad DNeX’s unit bags maintenance contract from Inland Revenue Board KUALA LUMPUR (Feb 2): Dagang NeXchange Bhd’s (DNeX) subsidiary Innovation Associates Consulting Sdn Bhd (IAC) has bagged a RM4.05 million maintenance contract from the Inland Revenue Board of Malaysia (IRBM). Under the contract, IAC will be responsible for the application and software maintenance of Malaysia Hasil Integrated Taxation Systems (HITS). The one-year contract is expected to commence in February 2023 and be operationalised at IRBM’s headquarters in Cyberjaya. In a statement, DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the maintenance contract for HITS can further position DNeX on a better footing and reinforce the company’s technology consulting and system integration arm via IAC to expand its digital capabilities in pursuit of becoming a top regional digital transformation player. — by Justin Lim Ex-Bersatu deputy Sabah chief Juslie Ajirol exits Suria Capital’s board KUALA LUMPUR (Feb 2): Former deputy head of the Sabah division for Parti Pribumi Bersatu Malaysia Datuk Juslie Ajirol has left the board of Suria Capital Holdings Bhd. Juslie, who was appointed as the director of the property developer in February last year, resigned on Wednesday (Feb 1, 2023) due to “other commitments”. He was also an MP for Libaran from 1998 to 2018, according to Suria Capital’s Bursa Malaysia filing on Thursday. — by Syafiqah Salim BLand appoints Chester Voo as CEO for group aviation KUALA LUMPUR (Feb 2): Former Civil Aviation Authority of Malaysia (CAAM) CEO Datuk Captain Chester Voo Chee Soon has joined the board of Berjaya Land Bhd (BLand). Voo’s appointment as BLand’s CEO for group aviation took effect on Thursday (Feb 2), and he will oversee the airlines under Berjaya namely Berjaya Air, Asia Jet and Rafflesia Airways, BLand said in a statement. Voo is a veteran in the aviation industry with 29 years of experience. He was the CEO of CAAM from June 2020 until December 2022. He commenced his career as a pilot with Malaysia Airlines in 1993, before subsequently joining AirAsia in 2008. — by Syafiqah Salim Adelene Foo appointed Grab Malaysia MD KUALA LUMPUR (Feb 2): Adelene Foo has been appointed as the managing director of Grab Malaysia, effective Feb 1, 2023. In a statement on Thursday (Feb 2), the company said Foo will oversee the business strategy and operations of Grab’s businesses in Malaysia. A 10-year veteran at Grab, she was previously the country head in Malaysia between 2012-2014 before moving on to regional roles, most recently the regional head of merchants and regional head of GrabExpress as well as newly appointed chief executive officer of Jaya Grocer. Foo succeeds Sean Goh, who assumes the position of regional head of deliveries and mobility. — by Priyatharisiny Vasu Lambo classified as GN3 company, has seven months to submit regularisation plan KUALA LUMPUR (Feb 2): Lambo Group Bhd has been classified as a Guidance Note 3 (GN3) company, Bursa Malaysia said on Thursday (Feb 2). Lambo said in a bourse filing on Thursday that it was still in the midst of formulating a regularisation plan to address its financial condition. The company said it had approximately seven months to submit its regularisation plan to the relevant authorities. The sevenmonth period, instead of 12 months, is because the company was already classified as an affected listed corporation in August 2022 for its “insignificant business or operations” when it recorded a revenue of RM8.21 million on a consolidated basis for the 12-month financial period ended May 31, 2022, representing less than 5% of its share capital. On Tuesday, Lambo said its external auditors had expressed a disclaimer of opinion in the company’s consolidated audited financial statements for the 16-month period ended Sept 30, 2022. CAS Malaysia PLT said in its auditors report that among the bases for the disclaimer of opinion was the inability to ascertain the accuracy, completeness and validity of the financial statements concerning Lambo’s subsidiary Fujian Accsoft Technology Development Co Ltd. — by Hailey Chung
friday february 3, 2023 12 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): Former AmBank customer relationship manager Joanna Yu Ging Ping said she was surprised that fugitive financier Low Taek Jho (Jho Low) had told the Malaysian Anti-Corruption Commission (MACC) in 2015 that he did not communicate with her through BlackBerry Messenger (BBM) despite the existence of their exchanges. During the 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial where former prime minister Datuk Seri Najib Razak was charged with corruption, his lawyer Tan Sri Muhammad Shafee Abdullah had read a statement where Jho Low denied ever chatting with her via the messaging platform. Previously, Yu said she dealt with Jho Low because he had initiated the opening of the ex-PM’s accounts with the bank, and had continued dealing with him even though there was no written permission from Najib for Jho Low to deal with his accounts. Muhammad Shafee pointed out to her that Jho Low had told the MACC he could not recognise the BBM exchanges between himself and Yu. It should be noted that this statement by the MACC was recorded from Jho Low in November 2015. Subsequently, the statement was tendered as evidence in Najib’s other criminal trial, the SRC International Sdn Bhd trial. Muhmmad Shafee:Are you surprised that Jho Low said he can’t recognise the BBM messages? In fact, he denied talking to you on BBM. Yu: I don’t know what he said. KUALA LUMPUR (Feb 2): The Penang High Court has granted the Inland Revenue Board’s (IRB) application for a summary judgment to recover RM1.8 billion in tax arrears from Tan Sri Larry Low Hock Peng, the father of fugitive businessman Low Taek Jho or Jho Low. A summary judgment is when a court decides a case without hearing the testimony of witnesses. Judge Datuk Seri Tun Abd Majid Tun Hamzah who delivered the decision yesterday allowed the application and ordered Larry Low to pay costs of RM3,000. The court also rejected Larry Low’s application to strike out the suit filed by the government through the IRB. Senior revenue counsels Norhisham Ahmad Norhisham Ahmad, Al-Hummidallah Idrus dan Muhammad Aiman Abdullah appeared for IRB while Larry Low was represented by lawyers Yatiswara Ramachandran, Francis Tan and Oh Chong Ghee. by Timothy Achariam & Tarani Palani theedgemarkets.com Bernama Yu surprised Jho Low claims he didn’t chat with her over BlackBerry Messenger despite proof of messages IRB gets summary judgment in RM1.8 bil tax suit against Jho Low’s father Throughout the trial, and even in Jho Low’s witness statement, the BBM exchanges between Yu and Jho Low were reproduced, where Jho Low seemed to be giving her instructions about Najib’s accounts. In court before judge Datuk Collin Lawrence Sequerah, Yu said that she doesn’t know in what context Jho Low was asked the questions by the MACC. Muhammad Shafee then explained to her: Muhammad Shafee: He was shown the BBM chat[s] and he said he can’t recognise [the messages and] that he never spoke to Joanna. You’d be surprised? Yu: Yes. Muhammad Shafee: [He said that he] had nothing to do with bringing Najib’s accounts to the bank. Yu: I would be surprised. Yu then agreed with Shafee that Jho Low had in fact communicated with her on many occasions. Yu also admitted that Jho Low had offered her a job with a higher salary to work in one of his many companies, but she said she had turned him down. “I did not want to [join]… I said I had a lot of things to think about. I have a family and I wouldn’t want to work [according to] his lifestyle,” she said. “He kept asking [and] I politely said no. I just said I have to think about it,” she said, adding that she couldn’t recall when the offer was made, but it was around 2013 or 2014. Najib is on trial on four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion of 1MDB funds. The trial before Sequerah continues on Friday (Feb 3). Former AmBank customer relationship manager Joanna Yu Zahid Izzani/The Edge On March 24, 2021, the government as the plaintiff filed an application for a summary judgement to be entered against Larry Low as the defendant in its suit to recover RM1,884,098,662.55 with interest at 5% per annum from the date of this judgment (Feb 1) to the date of full realisation. The application was made on the grounds, among others, that the tax arrears and tax increases imposed under the provisions of the Income Tax Act 1967 can be recovered as a tax due and payable. Larry Low filed an application to strike out the suit on March 22, 2021, saying, among others, that the assessment years 2011 and 2012, as well as the additional assessments for 2013 and 2014, were invalid because they were made more than five years from the year of assessment on the income claimed to have accrued without complying with Section 91(3) of the Income Tax Act 1967. The government, which filed the suit on Jan 19, 2021, claimed that Larry Low had failed to pay the owing income tax for the Assessment Years 2011, 2012 and the Additional Assessment Years 2013, 2014, 2015 and 2018 including the increases, amounting to RM1,884,098,662.55. On Oct 18 last year, the Penang High Court allowed the IRB’s application for a summary judgment to recover RM1.05 billion in tax arrears from Jho Low.
friday february 3, 2023 13 The E dge C E O m o rning brief
friday february 3, 2023 14 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): The High Court on Thursday (Feb 2) ordered former prime ministers Tun Dr Mahathir Mohamad and Tan Sri Muhyiddin Yassin, as well as three others, to file their defence over a suit filed against them for alleged abuse of public office and negligence in connection with the termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project. They are ordered to file in their defence statements by Feb 28. Apart from the two former PMs, the other three defendants named in the suit filed by Mohd Hatta Sanuri, 47, are former minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, former transport minister Datuk Seri Dr Wee Ka Siong and the government. Lawyer Mohaji Selamat, representing Mohd Hatta, said the court had also ordered his client to file a reply to the statements of defence by March 28. The court set March 30 for further case management, he said when contacted after the case management conducted online, before senior assistant registrar Nur Shasha Hidayah Nor Azahar on Thursday. Mohd Hatta filed the suit on Dec 30 last year, on behalf of himself and more than 32 million Malaysians “who were affected and disappointed by the waste committed” by all defendants for allegedly terminating the HSR project. In the statement of claim, Mohd Hatta said Mahathir, who was then the seventh PM, had committed tort of misfeasance in public office when he decided to postpone the HSR project, causing the government and the Malaysian people to pay compensation of almost RM46 Two ex-PMs, three others ordered to file defence in suit over termination of HSR project KUALA LUMPUR (Feb 2): The Attorney General’s Chambers (AGC) has rejected the representation by Sarawak Report editor Clare Rewcastle-Brown seeking the prosecution to withdraw a charge made against her for allegedly making defamatory statements against Sultanah of Terengganu Sultanah Nur Zahirah. Rewcastle-Brown, who is from the UK, was charged in absentia with defaming Sultanah Nur Zahirah in a book titled The Sarawak Report: The Inside Story of the 1MDB Exposé, in the Kuala Terengganu Magistrate’s Court on Sept 23, 2021. The charge, framed under Section 500 of the Penal Code, provides imprisonment for up to two years, or a fine or both, if convicted. Her lawyer, Guok Ngek Seong, said he was informed of the matter through a letter sent via email last Jan 25. “We will submit a new representation to the AGC in due course,” said Guok when met by reporters after case management before High Court deputy registrar Catherine Nicholas on Thursday (Feb 2). Guok said in Thursday’s case management, the court fixed March 10 for further case management, and it would be held before a new judge, K Muniandy, who reAGC dismisses Rewcastle-Brown’s representation to withdraw defamation charge Bernama Bernama places Mohamed Zaini Mazlan who is now a Court of Appeal judge. Meanwhile, deputy public prosecutor Noor Haslinda Che Seman, when contacted, confirmed the matter. She also said the hearing of the case, which was supposed to take place at the Kuala Terengganu Magistrate’s Court last month, was postponed pending Rewcastle-Brown’s application to transfer the case to the High Court here. Rewcastle-Brown filed the representation on Dec 13 last year, following a High Court’s decision on Oct 31 in dismissing the defamation suit filed by Sultanah Nur Zahirah against her. In the application, Rewcastle-Brown said the High Court had ruled that the paragraph in the book was not defamatory, and therefore, the prosecution will face difficulties in proving the case beyond reasonable doubt. Judicial commissioner Dr John Lee Kien How @ Mohd Johan Lee ruled that the statement complained of in the book was not defamatory of the sultanah, and ordered RM80,000 in costs to be paid to Rewcastle-Brown and other defendants, namely publisher Chong Ton Sin and printer Vinlin Press Sdn Bhd. million to the Singapore government. He claimed that Muhyiddin, who was then the eighth PM, also committed tort of misfeasance in public office for terminating the project, causing the Malaysian government and the people to pay RM320,270,519.24 as compensation for the cancellation of the bilateral agreement between Malaysia and Singapore. Mohd Hatta claimed that Mustapa, who was responsible for managing the project, had committed a similar offence by shelving the project, while Wee committed tort of misfeasance in public office for denying the Malaysians their right to enjoy a firstclass transport system with the cancellation of the HSR project. Mohd Hatta is seeking a court order to declare the cancellation of the project null and void, as well as for all the defendants to pay RM1 million in compensation to him and all Malaysians for wrongfully and negligently cancelling the HSR project. On Jan 1, 2021, Malaysia and Singapore announced the termination of the 350km HSR project as the two countries had failed to reach an agreement on changes proposed by Malaysia before the expiry of the project agreement on Dec 31, 2020. Accordingly, Malaysia paid S$102.8 million (RM320.27 million) to Singapore for costs incurred during the development of the HSR project. Shahrin Yahya/The Edge Sarawak Report editor Clare Rewcastle-Brown
friday february 3, 2023 15 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): The Sessions Court (civil division) here has fixed March 24 to deliver its decision on Economy Minister Rafizi Ramli’s third-party discovery application with regards to former Sapura Energy Bhd chief executive officer and managing director Tan Sri Shahril Shamsuddin’s remuneration and incentive package paid by the company. Session Court judge Lailatul Zuraida Harron @ Haron fixed the date on Tuesday (Jan 31) after hearing submissions on Rafizi’s application regarding the matter following a defamation suit filed by Shahril last year. On Jan 9, she allowed Rafizi to amend his statement of defence regarding the suit. As a result, Rafizi filed his amended defence on Jan 18. This was confirmed by Rafizi’s counsel Navpreet Singh when contacted by The Edge. Rafizi, who is also Pandan MP, had on Nov 24 filed the discovery application and amended his defence which he had earlier filed last July. In the discovery application, Rafizi had sought the court’s permission for Sapura Energy to reveal Shahril’s remuneration and incentive package. Shahril filed the suit against Rafizi through solicitors Messrs Zul Rafique & Partners last May, following Rafizi’s statements in three articles published on the Pandan MP’s social media accounts in reaction to former prime minister Datuk Seri Najib Razak wanting the government to inject more funds into Sapura Energy to save it. Rafizi had opposed Najib’s view of further bailing out Sapura Energy, claiming that public funds should not be used to protect the elite. Decision on Rafizi’s discovery application to seek Sapura Energy ex-CEO Shahril’s remuneration fixed for next KUALA LUMPUR (Feb 2): There is still month no settlement over some estimated RM2 billion assets claimed by Aminah Abdullah, the mother of the late former minister Tan Sri Dr Jamaludin Jarjis, and Jamaludin’s widow Puan Sri Kalsom Ismail and the couple’s four children. On Tuesday (Jan 31), the parties informed the Shariah High Court that they had yet to reach a settlement, and as such, the court fixed a later date for the parties to return to the court. The parties will now update the court on May 2 on whether they could settle the matter amicably, and this was confirmed by Aminah’s relative and lawyer Farhan Haziq when contacted by theedgemarkets.com. Last Nov 1, it was reported that Kalsom was discussing a possible out-of-court settlement with her four children and mother-in-law Aminah in the dispute over matrimonial assets worth an estimated RM2 billion. This followed that the court was scheduled to hear Kalsom’s application to amend her statement that month, but the matter was adjourned after the parties informed judge Abdul Shukor Abd Hamid that they were discussing a possible settlement. Kalsom had named her children Ikhwan Hafiz Jamaludin, Nur Anis Jamaludin, Nurul Alyaa Jamaludin and Noor Adilla Jamaludin, besides Jamaludin’s mother, Aminah, as defendants. The ongoing discussion for settlement is to take place without their lawyers’ presence. Nur Hidayah A Bakar, another counsel representing Aminah, confirmed that there was no settlement yet as the family was still in discussion. Jamaludin, a one-time science, technology and innovation minister and former Malaysian ambassador to the US, was killed in a helicopter crash near Semenyih with five others, including former prime minister Datuk Seri Najib Razak’s principal private secretary Datuk Azlin Alias, in April 2015. The former minister, a close confidante of Najib, was said to have several bank accounts locally and abroad, along with several properties, including houses in Malaysia, Saudi Arabia and the US, where he had served as Malaysia’s ambassador. Before involving himself in politics, Jamaludin, a former lecturer at Universiti Teknologi Malaysia, was also a businessman. Following his death in 2017, Ikhwan Hafiz and Nur Anis were named as administrators of Jamaludin’s estate in the letters of administration granted by the Civil High Court in 2017. Kalsom, a dentist by qualification, is seeking an amendment to remove and add several listed assets in the statement of claim filed four years ago. She is claiming one-eight of the estate, while Aminah is claiming one-sixth of the assets under the Islamic faraid system. Federal Court fixes Feb 9 as hearing date Meanwhile, in an unrelated development, the Federal Court has fixed Feb 9 to hear a motion by Ikhwan Hafiz and Nur Anis for leave to appeal against a Court of Appeal decision last August, which ruled that Rantai Wawasan Sdn Bhd is considered a part of Jamaludin’s estate. Aminah is also staking her claim on a portion of the shares. Case management was done in the Federal Court last week, which fixed Feb 9 as the hearing date for the motion for leave to appeal. This was confirmed by Aminah’s counsel Pawancheek Merican when contacted by theedgemarkets.com. In civil cases in the apex court, the appeal is not automatically heard as leave (permission) would have to be gained first. Court of Appeal judge Datuk Mohd Nazlan Mohd Ghazali, who read the unanimous decision by a three-member appellate bench, upheld the Kuala Lumpur High Court’s decision that also ruled Alpine Motion Sdn Bhd and Ivory Insights Sdn Bhd, which were used as special purpose vehicles for Nur Power, are not part of Jamaludin’s estate due to lack of evidence. Aminah had laid claim over her rightful portion of the shares following Jamaludin’s sudden death. She filed the suit in 2019, claiming that shares in the three companies should be construed as part of her son’s estate. The octogenarian is also claiming: • Three million Rantai Wawasan shares worth RM1.044 billion (audited as at end-2017), • Six million Alpine Motion shares worth RM233 million, and • Two Ivory Insights shares worth RM80 million. Family dispute over Jamaludin Jarjis’ RM2 bil assets remains unresolved by Hafiz Yatim theedgemarkets.com by Hafiz Yatim theedgemarkets.com
friday february 3, 2023 16 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 2): The Companies Commission of Malaysia (SSM) has proposed to review the threshold of the qualifying criteria for audit exemption for certain categories of private companies. SSM said in a statement that the proposed review would be conducted via a consultation exercise with the publication of the Consultative Document on Proposed Review of Audit Exemption Criteria for Private Companies in Malaysia on Thursday. It said that as a background, the qualifying criteria for audit exemption was introduced on Aug 4, 2017, Practice Directive No 3/2017 in line with the policies to reduce the regulatory and administrative burdens faced by smaller companies in complying with the Companies Act 2016. “To ensure that the objectives of the policies remain relevant and beneficial, SSM is proposing that the threshold for the audit exemption qualifying criteria be increased to allow more companies especially the small and medium enterprises to benefit from these policies,” it said. SSM said that the new qualifying criteria would cover three categories of private companies, namely dormant companies, zero revenue companies and threshold-qualified companies. It said that dormant companies must be dormant since their incorporation or for the immediate past two financial years to qualify for the audit exemption, whereas zero revenue companies must fulfil the criteria of having no revenue during the current financial year and immediate past two financial years with total assets not exceeding RM500,000 during the same periods. SSM said that for threshold-qualified companies, the proposed qualifying criteria include having revenue not exceeding RM1 million during the financial year and immediate two financial years, with total assets not exceeding RM1 million, and having not more than 30 employees during the same periods. Currently, it said certain categories of private companies may dispense with the audit requirement if they fulfil the existing qualifying criteria. The consultative document can be accessed through SSM’s portal and its official social media platform. SSM is inviting comments and accepting enquiries on the document via email to [email protected] before Feb 28, 2023. Companies Commission proposes to review audit exemption criteria for private companies KUALA LUMPUR (Feb 2): The Government on Thursday announced the introduction of the Fixed Internet Broadband Unity Package which is aimed at helping the B40 households, veterans, persons with disabilities and senior citizens to enjoy broadband services at a lower price. Minister of Communications and Digital Fahmi Fadzil said the introduction of the package was in line with the government’s commitment to reduce the people’s cost of living. KUCHING (Feb 2): Sarawak recorded a revenue of RM11.9 billion for 2022, the highest revenue performance ever achieved by the state. Sarawak Premier Tan Sri Abang Johari Tun Openg said the figure had surpassed its projected revenue of RM10.2 billion by 17%. He said Sarawak’s revenue comprises four main categories, namely tax revenue, non-tax revenue, non-revenue receipts, and federal grants and reimbursements. Abang Johari said tax revenue contributed RM6.7 billion or 56% of total revenue, while the other categories made up 44%. “Under the tax revenue category, the state sales tax (SST) contributed 84% or RM5.6 billion of total tax revenue collected. Taxable products under the SST, among others, were oil and gas products, oil palm products and aluminium. “The improved performance in SST collection was due to higher market prices in 2022 for oil and gas products and oil palm products,” he told a press conference at the state assembly building here on Thursday (Feb 2). Abang Johari said the Sarawak government would continue to study and look into various key initiatives to increase the state’s revenue through enhancing, widening and diversifying its revenue sources. He added that the state government had decided to continue extending the Bantuan Khas Sarawakku Sayang on electricity bill discounts of 5% to 25% for domestic and commercial users and industries for the first six months of this year. He said the initiative would involve a sum of RM200 million. He said the package offers internet services with speeds of up to 30 Mbps along with unlimited data that costs only RM69 a month. “It will be offered from March onwards with a 24-month subscription contract. “The price is 22% cheaper than the price of other packages available with the same specifications, which is around RM89. That means the people will be able to save RM480 throughout the contract period,” he said in a statement here on Thursday. Fahmi said the package is offered with the cooperation of existing fixed internet broadband service providers namely Telekom Malaysia (TM), CelcomDigi, Maxis, U Mobile, YTL, TIME Berhad and Astro. The minister said the initiative was not only in line with the government’s aspiration to alleviate the people’s burden, but also an indicator that the government and service providers really cared about the people’s needs and wellbeing. Apart from that, it was also part of the efforts to ensure more comprehensive digital connectivity at a much lower price in line with the concept of Malaysia Madani, he added. Introduction of fixed internet broadband unity package to help B40 households — Fahmi Abang Johari: Sarawak’s 2022 revenue at record RM11.9 bil Bernama Bernama Bernama Bernama
friday february 3, 2023 17 The E dge C E O m o rning brief world WASHINGTON (Feb 2): The Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday, yet continued to promise “ongoing increases” in borrowing costs as part of its still unresolved battle against inflation. “Inflation has eased somewhat but remains elevated,” the US central bank said in a statement that marked an explicit acknowledgement of the progress made in lowering the pace of price increases from the 40-year highs hit last year. Russia’s war in Ukraine, for example, was still seen as adding to “elevated global uncertainty,” the Fed said. But policymakers dropped the language of earlier statements citing the war as well as the Covid-19 pandemic as direct contributors to rising prices and omitted mention of the global health crisis for the first time since March 2020. Still, the Fed said the US economy was enjoying “modest growth” and “robust” job gains, with policymakers still “highly attentive to inflation risks”. “The [Federal Open Market] Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,” the Fed said. Fed chair Jerome Powell wasted little time emphasising that recent progress on inflation — while “gratifying” — is still insufficient to signal an end to the rate hikes. “We will need substantially more evidence” that inflation is ebbing to be confident that it’s moving back towards the target,” Powell said at a news conference following the end of the two-day policy meeting. That said, Powell said he believes there is a path back to the Fed’s 2% inflation target without a significant economic downturn, and the central bank may be only “a couple of more rate hikes” from the level it deems is sufficiently restrictive to bring inflation down. Stocks, modestly lower ahead of the Fed rate decision, turned sharply higher as Powell spoke, with the benchmark S&P 500 index climbing about 1% on the session. At the same time, the yield on the twoyear Treasury note, the maturity most sensitive to Fed policy expectations, dropped abruptly to the day’s low, last trading down about eight basis points at around 4.12%. The US dollar slid against a basket of major trading partner currencies. “If you were hoping for clear signs of an upcoming pause in interest rate hikes, you were left wanting. The Federal Reserve retained the phrase ‘ongoing increases’ in their statement, leaving their options open depending on what upcoming economic data says,” said Greg McBride, the chief financial analyst at Bankrate. Read the full story Read also: Powell says Fed can’t shield economy from a debt default The more Powell spoke, the more stock and bond markets rallied Fed delivers small rate hike, still anticipates ‘ongoing increases’ (Feb 2): The Bank of England (BOE) raised interest rates a half point, saying more increases will be needed if signs of an inflationary spiral persist. Seven of the UK central bank’s nine-member Monetary Policy Committee endorsed the hike to 4%, while two voted for no change. The majority said strong pay growth and an ongoing shortage of workers were feeding price pressures in the economy. The decision marked the 10th increase since the BOE started hiking in December 2021, bringing the key rate to its highest since 2008. UK bonds trimmed earlier gains after the decision, with the yield on 10-year gilts down seven basis points at 3.23%. The pound trimmed earlier losses against the US dollar to trade around US$1.2345. Money market bets imply a peak rate of 4.5% by the middle of the year, compared with around 4.4% prior to the rate decision. Officials led by Governor Andrew Bailey estimated the economy is already in recession but that the downturn will be shorter and shallower than they had projected in November. The risks to inflation remain “skewed significantly to the upside”. The committee pointed to record pay settlements this year. The BOE estimated a decline of almost 1% in gross domestic product across five quarters. That will pose a challenge to Prime Minister Rishi Sunak’s government, which must call an election by the start of 2025. The economy will not recover to pre-pandemic levels of output until at least 2026 and 500,000 more workers will lose their jobs, the BOE predicts. The contraction the BOE estimated is still smaller than the 2.9% fall over eight quarters predicted in November. Despite the dismal backdrop, the BOE BOE raises key rate to 4% saying more hikes may be needed appeared to endorse the market view that rates will peak at around 4.5% in the coming months. The panel warned that “if there were to be evidence of more persistent pressure, then further tightening in monetary policy would be required”. The market path currently anticipates rate cuts next year. In a sign that the end of the rate-rise cycle may be nearing, the BOE dropped its guidance that it would respond “forcefully” if necessary. The range of views on the MPC reflected the challenge of fighting inflation, which is lingering near a 40-year high, and coping with a difficult economic outlook. Read the full story Read also: BOE forecasts for UK economy even gloomier than IMF projections ECB hikes by half-point and vows more before reassessing by Andrew Atkinson & Philip Aldrick Bloomberg by Howard Schneider & Ann Saphir Reuters reuters
friday february 3, 2023 18 The E dge C E O m o rning brief world (Feb 2): The crisis engulfing Indian billionaire Gautam Adani’s corporate empire has started dragging down a broader range of assets tied to the world’s fastest-growing major economy. Contagion from the US$100 billion wipeout in Adani group’s stocks following a scathing report from Hindenburg Research last week has helped push the MSCI India Index to the brink of a technical correction. The rupee has fallen against all its Asian peers over the period, while the spreads on an index of bonds in the nation expanded to the widest level in four weeks. The implosion of the Adani companies, which accounted for almost one out of every US$10 invested in Indian stocks at the group’s peak in September, has provided a catalyst for investors complaining about the nation’s expensive valuations to trim their holdings. The fallout is likely to make it harder for other Indian corporations to raise funds, put them under increased regulatory scrutiny, while also testing the faith voters have in Prime Minister Narendra Modi. “This is potentially a bigger problem for Indian equities, which have done so well during the pandemic as China pursued its Covid Zero policy,” said Peter Garnry, head of equity strategy at Saxo Bank A/S in Hellerup, Denmark. “The long-term ramifications could be quite negative.” The meltdown in Adani shares is likely to hasten the shift of funds toward China as the mainland’s reopening from Covid Zero gathers pace. Positioning also suggests there’s room for further losses, as India has been consistently named as a top overweight in analysts’ research reports over the past year. The MSCI India Index is trading at about an 80% premium to the MSCI China Index, according to data compiled by Bloomberg. That’s even after it has tumbled almost 10% from its record high close on Dec 1, putting it a whisker away from satisfying the definition of a technical correction. “The Adani-related headlines are generating a high level of negative attention, which could dampen investor appetite for Indian stocks,” said Jian Shi Cortesi, who manages China and Asia equity funds at GAM Investment Management in Zurich. “This could lead to India underperforming other Asian markets such as China, where macro pictures are turning positive and investor sentiment is warming up.” Global funds have pulled a net US$2 billion out of Indian equities in the three days through Tuesday. The outflow has taken place as MSCI Inc’s gauge of India equities has underperformed a broader Asian gauge by about 15 percentage points this year, set for the widest quarterly divergence since 2004. For some investors, this year’s decline in Indian shares may be a buying opportunity. The Adani crisis is a “normal bump” that emerging markets face from time to time, said Hugh Young, Asia chairman at abrdn plc in Edinburgh. “We’ve seen countless bumps over the years,” he said. “This one is large, obviously, but we’ve had many even larger. If anything, we’d use weakness to buy.” Likewise, emerging-market veteran Mark Mobius, who spent more than three decades at Franklin Templeton Investments, said Adani’s woes do “not affect the overall viability of the Indian market and economy.” India’s economy will withstand the stock rout caused by allegations against the Adani Group, while any impact on the broader equity markets is set to be shortlived, a top minister said Thursday. Worst performers The Adani group’s stocks now make up eight of the worst 10 performers in the MSCI Asia Pacific Index this year. The bonds issued by some of the group’s companies fell to distressed levels in US trading, while the flagship on Wednesday canceled its record 200 billion rupee (US$2.4 billion) follow-on public offering of shares. by Abhishek Vishnoi Bloomberg Adani contagion spreads as Indian benchmark nears correction The challenge facing the Indian authorities now is to limit the damage to investor confidence by pressing ahead with plans to bolster economic growth through infrastructure spending and measures to improve consumption — both of which were emphasized in this week’s budget. Since Modi came to power, Adani has been the poster child for his administration’s efforts to improve the nation’s infrastructure and domestic manufacturing. The prime minister’s perceived closeness to Adani may weigh on his popularity in the run up to the next general election due to be held before May 2024. “Things are moving very fast in the market, with a potentially major reassessment of the risks of investing in Indian equities by international investors,” said Gary Dugan, chief executive officer of the Global CIO Office in Singapore. “That reassessment includes governance, corporate transparency, nepotism, and indebtedness.” Read also: Adani in crisis as bonds hit distressed levels, stock sale axed Gautam Adani speaks about turmoil for first time after scrapping share sale Adani debate gets rejected in Indian Parliament, causing uproar Largest Indian bank SBI said to have US$2.6 bil of loans to Adani
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friday february 3, 2023 20 The E dge C E O m o rning brief world (Feb 2): Singapore’s property market is bracing for surging demand from Chinese buyers as the world’s second-largest economy reopens. Real estate agencies in the city-state have seen more inquiries from mainland Chinese, with industry watcher OrangeTee & Tie noting a 10% to 15% increase in January since Beijing announced it was ending three years of global isolation. The border reopening has also seen a spike in queries about immigration to Singapore. “I’m definitely seeing an uptick in interest among Chinese friends interested in moving to Singapore since the border opened,” said Lily Li, who bought a 640 square feet (60 square meter) apartment at the end of last year for S$1.3 million (US$989,000) including taxes. “I’m getting a ton of calls asking me about our experience, and people seeking advice on how to rent and buy property.” Chinese have been the largest foreign buyer group in Singapore since 2016 and made up 6.9% of foreign purchases of private apartments last year, the highest proportion since before the pandemic, according to OrangeTee & Tie data. Christine Sun, the agency’s senior vice president of research and analytics, potentially sees a more than 10% increase in the number of homes purchased by Chinese this year, in tandem with rising supply. Still, such demand is unlikely to fuel price rises in the city-state as the number of Chinese buyers is still small compared with locals. Home prices grew at the slowest pace in more than two years in the last quarter of 2022, taking the annual gain to 8.6%. China’s reopening is also stoking greater migration interest, with the city-state among top destinations that wealthy Chinese are considering. Investment migration consultant Henley & Partners saw migration inquiries from Chinese nationals in China and Hong Kong jump 600% following the reopening announcement, compared with three weeks prior. Queries about Singapore residency were the fourth highest in 2022, after Portugal and Greece residency and Grenada citizenship, according to the firm. Singapore’s “safety and security, stable political environment, pro-business policies and good infrastructure” are attractive to global investors, said Ismail Gafoor, chief executive of Singapore-based agency PropNex. Chinese led foreign inquiries in both the commercial and residential markets, with many prospective buyers being “high net worth or ultra-high net worth individuals”, he added. ERA Research and Consultancy sees more Chinese migrating to the city-state to work, live and invest — undeterred by the additional 30% tax foreign buyers have to pay on property — due to the “allure of Singapore being a safe haven, as well as their preference for real estate as a store of wealth”. Singapore’s relative high prices are causing some prospective Chinese buyers to pause and reflect, however. “For one house in Singapore, I can buy two houses elsewhere and still have leftover cash,” said Jeremy Zhang, 57, who owns an electronics business in Shenzhen and is on the hunt for a private apartment in a prime district near a train station. “So of course it is not a decision I will rush into without thinking through properly.” Singapore property market braces for surging Chinese demand Indonesia plans to ban copper exports Bernama by Sing Yee Ong Bloomberg JAKARTA (Feb 2): Indonesian president Joko Widodo said his government will consider halting the export of unprocessed copper ores to encourage domestic processing of raw materials in the country’s industrialisation push, following a similar policy on nickel and bauxite. Speaking at the Mandiri Investment Forum 2023, the Vietnam News Agency reported that the president, popularly known as Jokowi, had announced a ban on all bauxite exports from June 2023 under the downstream industry policy, following a similar move on nickel ore exports. After nickel ore exports were banned several years ago to force the opening of processing plants in Indonesia, the value of nickel exports recorded a 30-fold increase from US$1 billion (RM4.24 billion) to between US$30 billion and US$33 billion in 2022. bloomberg
friday february 3, 2023 21 The E dge C E O m o rning brief world KYIV (Feb 1): Security services searched the home of one of Ukraine’s most prominent billionaires on Wednesday, moving against a figure once seen as President Volodymyr Zelenskiy’s sponsor in what the authorities called a war-time anti-corruption purge. The action, days before a summit with the European Union, appears to reflect determination by Kyiv to demonstrate that it can be a steward of billions of dollars in Western aid and shed a reputation as one of the world’s most corrupt states. It came as Kyiv has secured huge pledges of weapons from the West in recent weeks offering new capabilities — the latest expected this week to include rockets from the United States that would nearly double the firing range of Ukrainian forces. Photographs circulating on social media appeared to show Ihor Kolomoiskiy dressed in a sweatsuit and looking on in the presence of an SBU security service officer at his home. The SBU said it had uncovered the embezzlement of more than US$1 billion at Ukraine’s biggest oil company, Ukrnafta, and its biggest refiner, Ukrtatnafta. Kolomoiskiy, who has long denied wrongdoing, once held stakes in both firms, which Zelenskiy ordered seized by the state in November under martial law. Separate raids were carried out at the tax office, and the home of Arsen Avakov, Ukraine raids home of billionaire in war-time anti-corruption crackdown WASHINGTON (Feb 1): The White House on Wednesday rejected North Korean accusations that joint military exercises in the region are a provocation and said the US has no hostile intent towards Pyongyang. “We have made clear we have no hostile intent towards the DPRK (North Korea) and seek serious and sustained diplomacy to address the full range of issues of concern to both countries and the region,” said a spokesperson for the White House National Security Council. The White House comment came after North Korea’s Foreign Ministry said that drills by the US and its allies have pushed the situation to an “extreme red-line” and threaten to turn the peninsula into a “huge war arsenal and a more critical war zone”. The statement, carried by state news agency KCNA, said Pyongyang was not interested in dialogue as long as Washington pursues hostile policies. The White House statement reiterated a US willingness “to meet with DPRK representatives at a time and place convenient for them”. “We reject the notion that our joint exercises with partners in the region serve as any sort of provocation. These are routine exercises fully consistent with past practice,” the official said. “The US is continuing to work closely with allies and partners to ensure peace and stability in the region. At the same time, we will continue to work with allies and partners to fully enforce UN Security Council resolutions that reflect the will of the international community and to limit the DPRK’s ability to advance its unlawful weapons programs and threaten regional stability,” the official said. Read also: North Korea says US drills have pushed situation to ‘extreme red-line’ — KCNA White House: US has no hostile intent towards North Korea by Steve Holland Reuters by Tom Balmforth & Olena Harmash Reuters who led Ukraine’s police force as interior minister from 2014-2021. The SBU said it was cracking down on “people whose actions harm the security of the state in various spheres” and promised more details in coming days. “Every criminal who has the audacity to harm Ukraine, especially in the conditions of war, must clearly understand that we will put handcuffs on his hands,” Ukraine’s security service chief Vasyl Malyuk was quoted as saying on the SBU Telegram channel. The prosecutor general’s office said the top management of Ukrtatnafta had been notified it was under suspicion, as were a former energy minister, a former deputy defence minister and other officials. Kolomoiskiy, who faces a fraud case in the United States, has been at the centre of corruption allegations and court disputes for years that Western donors have said must be resolved for Kyiv to win aid. Zelenskiy, who first came to fame as the star of a sitcom on Kolomoiskiy’s TV station, has long promised to rid Ukraine of so-called oligarchs, but had faced accusations that he was unable to move decisively against his former sponsor. In an address overnight before the raids, he alluded to new anti-corruption measures in time for Friday’s summit, at which Ukraine is expected to seek firm steps towards joining the EU. “We are preparing new reforms in Ukraine. Reforms that will change the social, legal and political reality in many ways, making it more human, transparent and effective,” he said, promising to reveal the details soon. Longer range missiles Ukrainian forces which recaptured swathes of territory from Russian troops in the second half of 2022 have seen their advance stall since November. Kyiv says the key to regaining the initiative is securing advanced Western weaponry. Two US officials said a new US$2 billion package of military aid to be announced as soon as this week would for the first time include Ground Launched Small Diameter Bombs (GLSDB), a new weapon designed by Boeing. The cheap gliding missiles can strike targets more than 150km away, a dramatic increase over the 80km range of the rockets fired by HIMARS systems which changed the face of the war when Washington sent them last summer. Read the full story Read also: Putin says military must stop Ukrainian shelling of Russian regions Ukrainian business tycoon Ihor Kolomoiskiy
friday february 3, 2023 22 The E dge C E O m o rning brief world (Feb 2): Meta Platforms Incs shares soared more than 20%, on track for their biggest gain in 10 years, after chief executive officer Mark Zuckerberg announced plans to make the social media giant leaner, more efficient and more decisive. The stock rose in trading after New York markets closed on Wednesday (Feb 1). If the gains hold, the move would be the biggest intraday jump since July 2013. Meta is the best performer in the S&P 500 Index since the stock’s recent Nov 3 closing low of US$88.91 (RM377.51), and is poised to more than double in value since then. Zuckerberg, who has spent the past year promising a faraway future in a digital world called the metaverse, was more focused on immediate problems, such as sending users the most relevant videos at the right time, and finally making significant revenue from messaging products. He called 2023 the “year of efficiency”. “We’re working on flattening our organisational structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers be more productive,” Zuckerberg said on an earnings call with investors. “There’s going to be some more that we can do to improve our productivity, speed and cost structure.” Zuckerberg said the company is using AI to improve the way it recommends content — a strategy for making the platform more attractive to users and advertisers alike. Meta is still suffering from a slump in demand for digital ads, which make up the vast majority of its sales, especially from clients in finance and technology. But the company also pointed to some industries, including health and travel, where businesses are spending more. Fourth-quarter sales fell 4% to US$32.2 billion, the third straight period of declines. Even so, the total beat analysts’ estimates, and Meta projected revenue of US$26 billion to US$28.5 billion for the first quarter, in line with an average projection of US$27.3 billion. Analysts are predicting that Meta will return to growth following the current period. Snap Inc, the parent of rival social-media app Snapchat, gave a less upbeat outlook on Tuesday, sending its shares down 10%. Snap said it expects sales to decline in the current period, with CEO Evan Spiegel remarking that the ad slump appears to be bottoming out. “Advertising demand hasn’t really improved, but it hasn’t gotten significantly worse either,” Spiegel said on a conference call. Meta, whose shares have gained 27% so far this year, is on the rebound after the worst year for its stock in history. The company faced a decline in advertiser demand due to weakness in the broader economy as well as a change in privacy rules on Apple Inc’s iPhone, which made it harder for Meta to offer targeted ads. Meta cut 11,000 jobs, or 13% of the workforce, in November in its first-ever major lay-off. Read the full story Meta shares soar as Zuckerberg ushers in ‘year (Feb 2): Shell plc’s natural gas busi- of efficiency’ ness can continue to grow after making record profits in 2022, as the global thirst for the fuel no signs of slowing, said chief executive officer Wael Sawan. After years of questions over how oil and gas producers can deliver strong returns to shareholders while also cutting carbon emissions, Shell’s new boss gave an early insight into how he sees the Russia’s invasion of Ukraine is reshaping both global markets and the opportunities for his company. “Our natural gas business continues to grow in a world that is desperately in need of natural gas at the moment, and I think for a long time to come,” Sawan said in an interview with Bloomberg TV on Thursday (Feb 2). “Gas has a critical role to play in the transition” to lower-carbon energy. Last year, Shell’s liquefied natural gas business boomed as Europe was forced to quickly pivot away from piped supplies of the fuel from Russia. Sawan said the company delivered 194 LNG cargoes to Europe and the UK in 2022, roughly five times what they would do in a typical year. “Gas has been absolutely critical,” Sawan said. “For a long time to come, a key focus area for us will be to continue to make sure that we lower the emissions from gas across the value chain.” There’s no sign that the tight energy market that helped deliver bumper profits for the company last year will ease, Sawan said. “What you will have going into 2023 of course is the return of a significant appetite from China to take up gas” after it ended its Covid-zero policies, Sawan said. “I would not declare an end to the energy crisis. I think we have a way to go.” Read also: Shell posts record 2022 profit as natural gas unit thrives Shell sees opportunities in a world ‘desperately in need’ of gas by William Mathis & Francine Lacqua Bloomberg by Kurt Wagner Bloomberg bloomberg
friday february 3, 2023 23 The E dge C E O m o rning brief world TOKYO (Feb 2): Sony Group Corp lifted its full-year profit outlook after record PlayStation 5 console sales helped earnings beat estimates. The Tokyo-based group raised its PS5 sales forecast to 19 million units for the fiscal year ending March, after selling 7.1 million units over the holiday quarter. Momentum for building out the PS5 ecosystem is growing, chief financial officer Hiroki Totoki said on a call after the earnings on Thursday, waving off concerns about a demand lull for the two-year-old console. Sony also hiked its operating profit foreSony raises outlook on strong PlayStation 5 momentum (Feb 1): Apple Inc is expected to report its first decline in quarterly revenue in nearly four years after strict Covid-19 curbs in China rapped the economy and related protests upended iPhone production at its biggest supplier Foxconn. Investors will look for details on how Chief Executive Tim Cook is trying to bolster demand in a weak economy that has prompted mass layoffs in the tech industry, a move Apple has so far avoided thanks to frugal hiring during the pandemic. “With supply chain challenges largely normalized, we now believe Apple is entering a period of slower demand due to macro factors,” said Cowen analyst Krish Sankar, adding that he expects 2% fewer iPhone units to be sold in 2023. The world’s biggest public company is expected to report on Thursday that iPhone sales fell about 5% for the all-important holiday quarter, according to Refinitiv. The last time iPhone sales slipped was in the August-October period in 2020, months into the Covid-19 pandemic. UBS analysts expect iPhone sales to have held up better in the United States than China and Europe, as the economies reeled from the impact of Covid-19 and the Russia-Ukraine war. Some demand for the iPhone will likely be pushed into the current quarter after supply restrictions in the first quarter and some demand lost due to lack of product availability in the holiday period, BofA analyst Wamsi Mohan said. The services business, a key growth engine for the company and home to Apple’s music and video streaming services, is set to post its lowest revenue growth for the holiday quarter — another fallout of consumers limiting spending. The context The disruption at the world’s biggest iPhone plant in Zhengzhou, China triggered a rare warning from Apple in November and limited stocks of its higher-end iPhone 14 models durApple set to post rare revenue drop as focus shifts to demand rebound by Nivedita Balu & Akash Sriram Reuters by Takashi Mochizuki & Yuki Furukawa Bloomberg ing what is typically its biggest sales quarter, powered by product launches and the holidays. Greater China, including Hong Kong, is key to Apple’s fortunes, contributing roughly a fifth to annual revenue. The Cupertino, California-based tech behemoth had in 2019 pared its total sales forecast due to an economic slowdown in the country following the Sino-US trade war. Analysts, however, expect a much-faster recovery this time as factories have restarted in China and Apple diversifies its production footprint with plants in India. “Commentary from luxury goods companies indicates China is rebounding quickly, which implies Mar-qtr Chinese iPhone sales should be better than expected,” Evercore ISI analysts said in a note. Fundamentals • Revenue estimated to have fallen 2% in the last three months of 2022, Apple’s first fiscal quarter. • IPhone sales likely fell for first time since 2020, while services business rose 6%. • Analysts expect net income to have dropped 10.4%; earnings per share of US$1.94 • Apple’s shares fell about 27% in 2022 and have gained nearly 10% in January Read the full story cast to ¥1.18 trillion (US$9.2 billion) from ¥1.16 trillion. The key games division, aided by the tailwind of favourable exchange rates, nudged expectations higher. Sony said it now sees slightly lower revenue for the year than previously. “Given the current climate where demand is deteriorating around the world, it’s amazing that Sony’s earnings are in line with expectations,” said Morningstar Investment Service analyst Kazunori Ito. “How long Sony can keep up this momentum depends on how much hardware they can deliver. If they can continue this virtuous software-hardware cycle, which was not possible until last year, this could be a turning point.” The company, which supplies camera sensors used in Apple Inc’s iPhones, said operating profit was ¥429 billion in October-December, above the average analyst expectation of ¥369 billion. Sales were ¥3.4 trillion. Totoki, the veteran CFO who has led Sony’s earnings briefings for years, will oversee its global operations, taking up the positions of president and chief operating officer from April 1, the company said earlier.
friday february 3, 2023 24 The E dge C E O m o rning brief world BOJ’s deputy governor warns against watering down inflation target SHIZUOKA (Feb 2): Bank of Japan (BOJ) Deputy Governor Masazumi Wakatabe on Thursday warned against watering down the bank’s 2% inflation target, saying that doing so would undermine the effects of its ultra-loose monetary policy. The remark came in the wake of a proposal by a panel of academic and business executives to make the inflation target a long-term goal, rather than one that must be met quickly, so that the BOJ can more flexibly raise interest rates. Wakatabe, a vocal proponent of aggressive monetary easing, said watering down the inflation target risked making the objective of the BOJ’s monetary policy too vague. It could undermine the transparency of monetary policy and its effectiveness,” he said in a speech. “This applies to dealing with not only deflation but also inflation. Wakatabe also said there was “absolutely no change” in the central bank’s commitment to maintaining its ultra-loose policy. — Reuters Pakistan launches US$2.7 bil China-designed nuclear plant KARACHI/ISLAMABAD (Feb 2): Pakistan inaugurated a US$2.7 billion nuclear reactor, providing some relief as the nation grapples with an energy crisis. The 1,100 megawatts capacity power plant will generate some of the nation’s cheapest electricity, according to data from regulator National Electric Power Regulatory Authority. The facility was connected to the grid last March. It’s the second unit at the Karachi nuclear power plant to use a Chinese-designed Hualong One reactor. China financed the facility’s expansion. Pakistan “badly needs” clean and cheap sources of energy, whether it is nuclear, hydro or other renewables, Prime Minister Shehbaz Sharif said at a ceremony at the power plant in Karachi. While the new facility is a welcome addition to Pakistan’s stretched grid, it won’t do much to curb dependence on expensive fossil fuel imports or solve the nation’s chronic energy shortages. — Bloomberg Top palm oil buyer India’s Jan imports fall to six-month low, dealers say MUMBAI (Feb 2): India’s January palm oil imports fell 31% from a month ago to their lowest in months as a narrowing discount to rival oils prompted refiners to increase purchases of soybean and sunflower oils, five dealers told Reuters on Thursday (Feb 2). The reduction in palm oil imports by India, the world’s biggest importer of vegetable oils, could weigh on Malaysian palm oil prices but support soyoil and help Russia and Ukraine in bringing down their sunoil stocks. India’s palm oil imports fell to 770,000 tonnes last month, the lowest since July 2022, according to the average of the estimates from the five dealers with trading firms. “Palm oil’s discount is coming down. Buyers are shifting to soyoil and sunflower oil,” said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm. Palm oil’s discount to soyoil has shrunk to less than US$300 per tonne from as high as US$500 in the December quarter, the dealers said. — Reuters Honda to start producing new hydrogen fuel cell system co-developed with GM TOKYO (Feb 2): Japan’s Honda Motor Co said it will start producing a new hydrogen fuel cell system jointly developed with General Motors Co this year and gradually step up sales this decade, in a bid to expand its hydrogen business. Honda will target annual sales of around 2,000 units of the new system in the middle of this decade, the company said on Thursday, aiming to boost that to 60,000 units per year in 2030. The Japanese carmaker is seeking to expand the use of its new system not only for its own fuel cell electric vehicles (FCEVs), but also commercial vehicles such as heavy trucks, as stationary power stations and in construction machinery. Honda will start production of the hydrogen fuel cell system through its joint venture with GM this year, Honda senior managing executive director Shinji Aoyama told reporters during a company event in Tokyo. — Reuters news In brie f Hong Kong expected to give away half a million airline tickets (Feb 2): Hong Kong officials are expected to announce details of a plan to distribute 500,000 air tickets as part of a global publicity campaign to be unveiled on Thursday (Feb 2). The city’s leader John Lee will oversee the launch of the Hello Hong Kong campaign at a briefing at 2.30pm local time, while finance chief Paul Chan will hold a press conference after the event, according to a government statement. The head of the Airport Authority will also attend the ceremony, the statement said. The campaign will highlight more than 200 events to be held to underscore the city’s return, according to the South China Morning Post (SCMP). Most of the half-million free air tickets will be distributed by Cathay Pacific Airways Ltd and its budget airline HK Express, with some handed out by travel agencies to international tourists, the SCMP said, citing someone it didn’t name. — Bloomberg reuters
friday february 3, 2023 25 The E dge C E O m o rning brief world (Feb 2): For most Asian hedge funds, 2022 proved to be a year of pain as a gauge of regional fund returns finished the year down 8.3%. But some money managers beat the odds and turned a profit. In a volatile era where active trading should theoretically trump index investing, here’s how they did it and some of the opportunities they see in the year ahead. Dymon Asia Capital’s MSIF fund enjoyed a 5.1% gain in 2022, growing its assets under management to $2.3 billion. The key drivers to returns came from anticipating directional moves in Asian currencies, relative value trades in rates, and volatility trades in equities, according to Kenneth Kan, Dymon Asia Capital deputy chief executive officer. For the year ahead, China’s reopening is a theme much of the firm is watching. Chinese “revenge traveling” after the lifting of restrictions could help currencies such as the Thai baht, the Singapore dollar, the Korean won and the euro. Dymon said consumption activities have already started picking up and expects this to accelerate after the Lunar New Year holidays end. In a strong US dollar environment, “one could put on a relative value FX trade against another country that could see less tourists from China,” Kan said, citing India as an example with comparatively few Chinese arrivals. “In equities, the China reopening trade will benefit travel, hospitality, and luxury stocks in particular.” The Singapore-based manager, helmed by Millennium Management alumnus Jimmy Lim, scored a 14.3% gain without a down month last year, with its assets under management sitting at US$1.1 billion. One trade that did well was a year-long bet through November on the Singapore dollar to strengthen against a basket of currencies of its trading partners. It anticipated the island state to be the first in the region to exit Covid restrictions, leading to Hedge funds that beat Asia turmoil are looking to China for 2023 (Feb 2): Investors are rushing to snap up sovereign bonds at auctions across Asia, with the surge in demand increasing the likelihood of further gains in the region’s debt markets. Singapore’s sale of Treasury bills last week drew record demand, while total bids at an Indonesian auction this week climbed to a five-month high. Malaysia’s offering of five-year Islamic securities Friday attracted the largest aggregate bids since May as investors sought to lock in higher returns amid signs US and local interest rates may soon peak. “Robust demand at auctions have largely hinged on the US peak rate gaining traction as well as local dynamics,” said Winson Phoon, head of fixed-income research at Maybank Securities in Singapore. Demand for Singapore’s Treasury bills was supported by ample liquidity and an inverted yield curve, Malaysia’s sale was buoyed by the central bank’s dovish hold decision in January, and Indonesia’s from a revival in risk appetite and overseas interest, he said. The buoyant demand for regional debt helped boost an index of emerging Asian fixed-income securities by 3.8% in January, the biggest monthly gain since March 2016, and will bolster government efforts to finance budget deficits and cut interest costs. Central bank interest rates in Southeast Asia appear to be topping out along with those in the US. Bank Indonesia’s key rate is close to its peak, Governor Perry Warjiyo said last week, while Bank Negara Malaysia’s unexpected decision to keep policy unchanged in January instead of hiking has Funds rush to emerging-Asia bond sales on bet rates near peak by Marcus Wong Bloomberg by David Ramli & Bei Hu Bloomberg increased dovish wagers. Fourth quarter gross domestic product data from Indonesia and Malaysia next week could provide further cues on the state of their economies. Record inflows The rising demand at primary bond sales in January has coincided with overseas funds boosting their bets on Southeast Asian debt. Indonesian bonds lured net inflows of US$3.2 billion in the first month of the year — a record in data compiled by Bloomberg going back to 2009 — on bets the central bank is nearly done raising rates. A rupiah bond sale on Jan 17 saw global investors snap up 47% of the securities on offer, the highest proportion since June 2019. Global funds poured US$4.2 billion into Thai bonds between November and January, the largest inflow for any rolling three-month period since February 2022. Malaysia recorded the first net foreign bond inflow in four months in December, according to the most recent central bank data. higher trade and tourism flows. A further boost came from the central bank’s move to strengthen the currency to combat inflation, according to Lim. Modular also envisioned post-Covid reopening would help Malaysia absorb labor displaced from service industries, bringing wage pressure and leading to rising local interest rates. The wager paid off when Malaysians hoarding the greenback led to tighter liquidity and credit conditions, forcing rates up, said Lim. Modular built a position in October that would profit from a rebound of the yen when it weakened to around 150 to the dollar. The company benefited when Japan reopened its borders that month, Lim added. It also had various Japanese government bond wagers, anticipating earlier-than-expected Bank of Japan yield curve control changes. Modular started betting in November that China would exit Covid restrictions sooner than the market anticipated, shifting focus to boosting consumption and helping hard-hit industries to stabilize and recover. “This would mean support especially in the property sector and also easing of technology sector constraints,” Lim said. “In this process, liquidity will have to be kept loose or at least not tighten.” He expects the long Chinese bonds and equity trades to continue to work out past the holidays. Read the full story reuters
friday february 3, 2023 26 The E dge C E O m o rning brief MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) Velesto Energy Bhd 218.96 0.025 0.255 70.00 2095.00 Borneo Oil Bhd 202.01 0.000 0.020 -20.00 193.50 Hong Seng Consolidated Bhd 195.65 0.015 0.215 -2.27 1098.30 Sapura Energy Bhd 155.06 0.000 0.050 42.86 799.00 Perdana Petroleum Bhd 143.23 0.015 0.205 64.00 454.60 Zen Tech International Bhd 110.74 0.005 0.070 250.00 88.90 Icon Offshore Bhd 95.50 0.000 0.120 26.32 324.60 Dagang NeXchange Bhd 86.45 0.030 0.685 34.31 2162.10 Ea Technique M Bhd 76.86 0.075 0.335 97.06 177.70 G3 Global Bhd 67.25 0.000 0.030 0.00 87.10 KNM Group Bhd 64.90 0.010 0.070 40.00 257.30 Nylex Malaysia BHD 56.42 0.085 0.630 103.23 113.00 TWL Holdings Bhd 56.00 0.000 0.050 42.86 199.20 PESTECH International Bhd 53.36 -0.060 0.250 -19.35 246.10 Vestland Bhd 51.14 -0.005 0.385 N/A 382.80 Bumi Armada Bhd 51.01 0.015 0.590 22.92 3491.60 Malaysian Resources Corp Bhd 50.12 0.025 0.355 20.34 1586.00 CTOS Digital Bhd 49.1 -0.080 1.460 2.82 3372.60 Alam Maritim Resources Bhd 48.92 0.005 0.035 40.00 53.60 Tanco Holdings Bhd 43.04 0.030 0.405 20.90 721.80 Data as compiled on Feb 2, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Compugates Holdings BHd 0.015 50.00 2,473.0 50.00 76.7 Eduspec Holdings Bhd 0.020 33.33 4,882.3 0.00 60.9 Ea Technique M Bhd 0.335 28.85 76,863.6 97.06 177.7 Joe Holding Bhd 0.025 25.00 150.0 25.00 76.5 Pasukhas Group Bhd 0.025 25.00 27,400.6 66.67 47.6 Scomi Energy Services Bhd 0.075 25.00 18,927.4 36.36 35.1 Focus Dynamics Group Bhd 0.025 25.00 1,760.1 25.00 159.3 Green Ocean Corp Bhd 0.025 25.00 2,919.9 25.00 52.8 Ta Win Holdings BHD 0.070 16.67 21,447.6 27.27 239.7 Alam Maritim Resources Bhd 0.035 16.67 48,917.7 40.00 53.6 Meridian Bhd 0.035 16.67 6,834.1 16.67 31.6 Citra Nusa Holdings Bhd 0.070 16.67 1,911.3 7.69 50.4 KNM Group Bhd 0.070 16.67 64,897.0 40.00 257.3 Nylex Malaysia BHD 0.630 15.60 56,425.7 103.23 113.0 TCS Group Holdings Bhd 0.265 15.22 1,265.4 12.77 103.4 Iqzan Holding Bhd 0.040 14.29 355 14.29 8.9 PUC BHD 0.040 14.29 338.4 14.29 68.9 JCY International Bhd 0.205 13.89 24,119.3 41.38 432.7 Country Heights Holdings Bhd 0.500 13.64 6,177.5 31.58 146.7 SMTrack Bhd 0.045 12.50 2,152.5 -10.00 52.6 Data as compiled on Feb 2, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Dolphin International Bhd 0.010 -33.33 1,819.6 -60.00 13.4 XOX BHD 0.020 -20.00 1,920.1 33.33 101.0 Lambo Group BHD 0.040 -20.00 14,143.9 -27.27 61.6 PESTECH International Bhd 0.250 -19.35 53,359.8 -19.35 246.1 Xidelang Holdings Ltd 0.030 -14.29 1,373.0 20.00 63.5 Ivory Properties Group Bhd 0.070 -12.50 202.0 -12.50 34.3 Avillion BHD 0.085 -10.53 30,959.2 6.25 96.3 Kim Hin Industry Bhd 0.540 -10.00 5.0 -7.69 75.7 Volcano Bhd 0.515 -8.85 2,936.4 6.19 85.0 Lien Hoe Corp BHD 0.310 -8.82 17.5 -10.14 103.1 mTouche Technology Bhd 0.055 -8.33 40.0 10.00 51 Barakah Offshore Petroleum Bhd 0.055 -8.33 13,695.2 120.00 55.2 Oversea Enterprise Bhd 0.110 -8.33 98.5 15.79 124.8 MGB Bhd 0.510 -8.11 137.1 -1.92 301.7 CSH Alliance Bhd 0.065 -7.14 7,471.1 62.50 89.8 Lotte Chemical Titan Holding Bhd 1.460 -7.01 4,475.2 2.82 3,325.2 Mentiga Corp BHD 0.550 -6.78 57.1 -2.65 38.5 Asia Media Group Bhd 0.140 -6.67 75.0 -6.67 33.5 YLI Holding BHD 0.285 -6.56 1.0 -5.00 29.3 SCGM Bhd 0.665 -6.34 5686.8 27.88 128.1 Data as compiled on Feb 2, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) HAP Seng Consolidated Bhd 7.140 -0.260 765.40 11.56 17,776.2 Can-One Bhd 3.310 -0.140 192.20 -1.78 636.0 Petronas Chemicals Group Bhd 8.220 -0.130 11,996.30 -4.42 65,760.0 Hong Leong Financial Group Bhd 18.380 -0.120 454.90 -1.18 21,049.6 Lotte Chemical Titan Holding Bhd 1.460 -0.110 4,475.20 2.82 3,325.2 PanasonicManufacturing M BHD 22.980 -0.100 11.70 0.35 1,395.9 Riverview Rubber Estates BHD 3.390 -0.090 3.00 -6.43 219.8 CTOS Digital Bhd 1.460 -0.080 49,100.40 2.82 3,372.6 FAR East Holdings BHD 3.720 -0.080 1.10 0.54 2,209.1 Gamuda Bhd 3.840 -0.080 5,178.90 2.40 10,062.0 PESTECH International Bhd 0.250 -0.060 53,359.80 -19.35 246.1 RHB Bank Bhd 5.690 -0.060 5,835.50 -1.73 24,167.6 Kim Hin Industry Bhd 0.540 -0.060 5.00 -7.69 75.7 Telekom Malaysia Bhd 5.160 -0.060 5,237.50 -4.44 19,716.4 7-Eleven Malaysia Holdings Bhd 1.990 -0.060 143.0 3.11 2209 Shangri-La Hotels Malaysia Bhd 3.260 -0.060 421.30 -5.51 1,434.4 MR DIY Group M Bhd 1.850 -0.050 8,523.40 -7.50 17,449.3 Computer Forms Malaysia Bhd 2.740 -0.050 2,338.00 8.73 730.6 CIMB Group Holdings Bhd 5.700 -0.050 16,387.20 -1.72 60,791.1 Volcano Bhd 0.515 -0.050 2936.4 6.19 85 Data as compiled on Feb 2, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Heineken Malaysia Bhd 29.000 1.000 1,137.7 15.08 8,760.8 Carlsberg Brewery M Bhd 24.200 0.660 366.5 5.77 7,399.1 Fraser & Neave Holdings Bhd 25.400 0.600 266.5 17.70 9,316.2 Petronas Dagangan Bhd 22.300 0.500 478.5 -3.04 22,154.0 Malaysian PacificIndustries Bhd 33.640 0.460 313.2 16.97 6,690.9 HextarTechnologies Solutions 29.120 0.460 289.4 70.69 3,746.3 British American Tobacco M Bhd 13.080 0.420 628.2 16.58 3,734.7 ViTrox Corp Bhd 8.200 0.360 879.3 7.19 7,746.5 Pentamaster Corp Bhd 5.170 0.340 3,561.8 16.70 3,677.5 Kuala Lumpur Kepong Bhd 21.760 0.340 1,340.7 -2.68 23,460.7 Nestle Malaysia Bhd 135.500 0.300 72.5 -3.21 31,774.8 Kobay Technology BHD 3.300 0.290 2,761.9 21.32 1,069.8 Petronas Gas Bhd 17.080 0.260 793.8 -0.23 33,796.7 Kesm Industries Bhd 7.500 0.200 145.5 6.84 322.6 Kotra Industries Bhd 6.200 0.190 20.4 -6.06 917.6 D&O Green Technologies Bhd 4.910 0.190 3,155.4 14.72 6,075.3 UWC BHD 4.240 0.190 1,856.3 5.47 4,669.8 Genetec Technology Bhd 2.840 0.190 9389.1 18.83 1934.8 Paragon Union BHD 2.080 0.170 388.9 11.83 174.4 Aurelius Technologies Bhd 2.750 0.160 3,797.4 50.27 985.0 Data as compiled on Feb 2, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DOW JONES 34,092.96 6.92 0.02 S&P 500 4,119.21 42.61 1.05 NASDAQ 100 12,363.10 261.17 2.16 FTSE 100 7,793.76 32.65 0.42 AUSTRALIA 7,511.65 9.99 0.13 CHINA 3,285.67 0.75 0.02 HONG KONG 21,958.36 -113.82 -0.52 INDIA 59,932.24 224.16 0.38 INDONESIA 6,890.57 28.31 0.41 JAPAN 27,402.05 55.17 0.20 KOREA 2,468.88 19.08 0.78 PHILIPPINES 6,986.19 -49.57 -0.70 SINGAPORE 3,363.68 -13.97 -0.41 TAIWAN 15,595.16 175.03 1.14 THAILAND 1,682.58 -3.17 -0.19 VIETNAM 1,077.59 1.62 0.15 Data as compiled on Feb 2, 2023 Source: Bloomberg CPO RM 3,755.00 -60.00 OIL US$ 82.83 -0.01 RM/USD 4.2467 RM/SGD 3.2516 RM/AUD 3.0287 RM/GBP 5.2408 RM/EUR 4.6716