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CEOMorningBrief THURSDAY, AUGUST 17, 2023 ISSUE 621/2023 theedgemalaysia.com WTO REJECTS CHINA’S TRUMP-ERA 2018 TARIFFS AGAINST US EXPORTS p19 HOME: AGC: No political interference, no need to review current charges p2 Govt looking at introducing Amanah Saham Rahmah initiative p4 More assets related to 1MDB case to be seized, says IGP p8 WORLD: Indonesian president tables US$216 bil budget for 2024 p19 Singapore arrests 10 in laundering case involving S$1 bil p22 MAHB terminates Pestech’s RM743 mil Aerotrain contract Report on Page 3. HTTPS://KLIA.INFO Report on Page 10. Optimism and concerns duel as Corporate Malaysia reports 2Q earnings

thursday AU G UST 17, 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] home PETALING JAYA (Aug 16): The Attorney General’s Chambers (AGC) has asserted that there is no political interference in any charges brought by the department, and that there are no reasons to review the charges pursued. The AGC said that the High Court’s decision to discharge and acquit former prime minister Tan Sri Muhyiddin Yassin on Tuesday (Aug 15) only concerned the four predicate offences under Section 23(1) of the Malaysian Anti-Corruption Commission Act 2009. “The [High Court] decision was made only based on the scope of the application that had been filed by [Muhyiddin]. “A notice of appeal was filed by the prosecution to challenge the validity of the decision,” the AGC said in a statement on Wednesday. It added that the three other monKOTA KINABALU (Aug 16): Construction of the littoral combat ships (LCS) is expected to resume in September, said Royal Malaysian Navy (RMN) chief Admiral Tan Sri Abdul Rahman Ayob. He said the construction will resume after the sixth supplemental agreement was signed at the 2023 Langkawi International Maritime and Aerospace Exhibition 2023 (Lima 2023) in May. “Five LCS vessels will be handed over to the RMN in stages, with the first ship expected to be handed over at the end of 2026,” he told a media conference after the closing ceremony of the Angsa (Air and Sea) Exercise Series 14/23 at the Kota Kinabalu RMN Base in Sepanggar, near here, on Wednesday (Aug 16). On the littoral mission ship (LMS) project, Abdul Rahman said they were still identifying suitable builders to carry out the project based on the specifications stipulated by RMN. “The allocation has already been given out, we hope the contract can be signed this year, at the latest, and construction can begin next year as we expect it will ey-laundering charges the Perikatan Nasional chairman faces for receiving RM200 million from Bukhary Equity Sdn Bhd still stand. The statement comes in response to opposition leader Datuk Seri Hamzah Zainudin on Wednesday urging Attorney General Tan Sri Idrus Harun to review AGC: No political interference, no need to review current charges LCS construction set to resume in September, says Navy chief by Tarani Palani theedgemalaysia.com Bernama the charges brought against opposition leaders, following the decision concerning Muhyiddin. The AGC stressed that “every decision” to prosecute is made following a full examination and consideration of available evidence gathered from enforcement agencies and relevant laws. Furthermore, it added that it is an independent body free from political interference. “There was no political interference or pressure to initiate any prosecution. The [AGC] always acts independently and professionally, in accordance with established procedures in initiating charges against any individual.” The AGC also issued a stern warning to all parties when issuing statements suggesting that the department’s freedom and integrity were compromised. take 36 months to be completed,” he said. On the Angsa Exercise, Abdul Rahman said the joint RMN-Royal Malaysian Air Force (RMAF) exercise, which began on July 28, involved 2,562 personnel which also included Malaysian Armed Forces personnel as support and observation elements. He said the goal of the exercise was, among others, to assess the interoperability of RMN and RMAF, especially in the 3P aspect of people, process and platform, with the involvement of assets belonging to RMN and RMAF. “This exercise is significant in ensuring both the RMN and RMAF can operate as one military unit that is more versatile and efficient in Malaysia’s maritime zones,” he said. Meanwhile, Chief of Air Force Gen Tan Sri Mohd Asghar Khan Goriman Khan said RMAF had signed a contract to purchase a new ATR 72 maritime patrol aircraft which is expected to enter the RMAF inventory from 2026, in addition to a contract for the first phase of the purchase of three Turkiye-manufactured unmanned aerial systems (UAS) units. Earlier, Mohd Asghar Khan said that apart from enhancing the level of preparedness and mutual service between RMN and RMAF, the Angsa Exercise this time served as a driver to improve tactics, techniques and procedures between the two services at the operational and tactical levels. “I hope efforts to increase these mutual elements will continue to be further enhanced to form a more mature and reliable task force in the collective implementation of maritime domain operations,” he said.

thursday AU G UST 17, 2023 3 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 16): Malaysia Airports Holdings Bhd has terminated the RM742.95 million contract awarded to Pestech International Bhd to undertake the new automated people mover (APM) or aerotrain project at the Kuala Lumpur International Airport (KLIA), confirming a report by The Edge that the airport operator intends to revoke the deal. “The termination is due to, amongst others PTSB’s [Pestech Technology Sdn Bhd] non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline. “PTSB has been found to be in material breach of its obligations under the contract and had failed to remedy the same within the specified time period,” MAHB said in a statement to Bursa Malaysia on Wednesday (Aug 16). Earlier on the same day, The Edge reported that MAHB intended to terminate the contract given to Pestech after the latter failed to meet the timeline. Citing sources, it wrote that the decision came after the progress of the project was more than 250 days behind schedule. AHB said its wholly-owned unit Malaysia Airports (Sepang) Sdn Bhd (MA Sepang) issued the notice of termination of the automated people mover (APM) or aerotrain project to Pestech’s wholly-owned subsidiary Pestech Technology Sdn Bhd (PTSB). PTSB was appointed by MA Sepang as the design and build contractor for the KLIA Aerotrain Replacement Programme on Dec 14, 2021, through an open tender process. MAHB was scheduled to obtain new trains by 2025 under the programme. Following the notice of termination, which was preceded by a notice of default to PTSB, MAHB said MA Sepang can proceed to recommence and complete the works through the engagement of other relevant parties, with a focus on ensuring the project is completed on schedule. “MAHB remains committed to assign the necessary resources in order to minimise any potential delays to the APM project. With immediate effect, MA Sepang will expedite consultation and discussions with all existing stakeholders who by anis hazim theedgemalaysia.com MAHB terminates Pestech as KLIA aerotrain contractor, citing non-performance Pestech is currently consulting its legal adviser and will seek appropriate legal redress under the contract. The termination of the project is expected to pose unfavourable financial effects to the group.” — Pestech. are presently involved in the APM project for continuity and to mitigate any delays,” the group said. This includes working closely with all relevant parties involved in the replacement project of the train’s tracks and system, as well as identifying an experienced and credible third-party contractor to ensure consistent progress of all project components, it said. MAHB has suspended its aged aerotrain service since March this year until further notice, amid a public backlash over frequent breakdowns. In the latest incident on March 1, 114 passengers were stranded mid-way on the tracks after the aerotrain broke down and had to walk from the main terminal building to the satellite building. A second train dispatched to rescue them also broke down. In mid-June, Transport Minister Anthony Loke said one of the two aerotrains is expected to start operating next year, and that his ministry had instructed MAHB to ensure that works to upgrade the system would be completed on schedule or earlier. Pestech warns of ‘unfavourable financial effects’ as it seeks legal redress Separately, Pestech, in a filing to Bursa Malaysia on the same day (Aug 16), said it will seek legal redress after being terminated as the contractor for the APM or aerotrain project at the KLIA. “Pestech is currently consulting its legal adviser and will seek appropriate legal redress under the contract,” the group said in a bourse filing on Wednesday (Aug 16). “The termination of the project is expected to pose unfavourable financial effects to the group,” it added. When Pestech was awarded the aerotrain job in December 2021, the troubled engineering outfit said the contract included financing as well as operation and maintenance of the facility from March 14, 2025 to Feb 11, 2034. The aerotrain contract was the biggest win for Pestech since its listing on Bursa Malaysia. It is understood that Pestech agreed to a deferred payment scheme that is over 15 years. With this, MAHB would not incur front-loaded large capital expenditure for the aerotrain service. Shares in Pestech closed down 2.5 sen or 7.94% to 29 sen on Wednesday, valuing the group at RM282.95 million. Meanwhile, MAHB settled unchanged at RM6.89 with a market capitalisation of RM11.5 billion.

thursday AU G UST 17, 2023 4 The E dge C E O m o rning brief home Foreign investors flock to Malaysia in July as us rate hike fears wane: RAM Ratings KUALA LUMPUR (Aug 16): The Ministry of Domestic Trade and Cost of Living is studying to create an Amanah Saham Rahmah initiative aimed at assisting hardcore poor families in the country. Deputy Minister Fuziah Salleh said the initiative is expected to help alleviate the cost of living burden of the group and ensure a steady source of income. She explained that the initiative involves the government investing a certain amount of money in selected companies. The dividends generated from these investments are then allocated to needy families, while the government retains ownership of the principal amount invested. “We are studying the best mechanism KUALA LUMPUR (Aug 16): UEM Group Bhd has secured majority shares in Cenergi SEA Bhd, a sustainable energy solutions company, from sovereign wealth fund Khazanah Nasional Bhd, and plans to grow its new subsidiary’s renewable energy (RE) business. The group said Cenergi, incorporated in 2008, specialises in reducing carbon footprint through investment in RE, specifically biogas, biomass and solar, as well as energy-efficiency projects, and is Malaysia’s largest grid-connected palm oil mill effluent biogas player. UEM Group in a statement on Wednesday (Aug 16) also said that Cenergi had a portfolio of 23 biogas power plants in Malaysia and Indonesia, with a total generation capacity of 39.6 megawatts (MW) and 20 solar projects across Malaysia, consisting of both solar farms and rooftop solar, with a cumulative capacity of over 37.6 MW peak. At present, Cenergi has in the pipeline biogas, rooftop solar and solar farm projects that are under construction and development in Malaysia. In addition, its subsidiary Cenergi EE Holdings Sdn Bhd was recently allotted a 29.99MW alternating current quota under the Energy Commission’s Corporate Green Power Programme. UEM Group managing director Datuk Mohd Izani Ghani commented that Cenergi had a commendable track record with projects and presence across the country. Govt looking at introducing Amanah Saham Rahmah initiative UEM Group secures majority stake in Cenergi from Khazanah to grow RE business Bernama Bernama Bernama KUALA LUMPUR (Aug 16): Foreign investors flocked to Malaysia in July, spurred by growing signs that the US Federal Reserve (Fed) is nearing the end of its rate tightening cycle, said RAM Ratings. It noted that both the equity and bond markets saw keener foreign buying activity. The overall foreign inflows into the bond market more than doubled month-on-month (m-o-m) to RM11.3 billion (June: RM5.2 billion) — the largest since June 2020 and the seventh successive month of foreign net purchases. “Bursa Malaysia also recorded a net foreign inflow of RM1.4 billion after 10 consecutive months of net outflows. “The better investor sentiment and appetite for riskier emerging market assets came on the heels of an encouraging US inflation print release in early July which showed a moderation to 3%, the lowest since March 2021,” it said. “Since a further 25 basis points (bps) rate hike on July 26, the Fed appears to be less hawkish, raising market bets that it may not follow through with the last 25bps hike Federal Open Market Committee members projected for this year,” it added. The rating agency noted that the stronger demand saw the benchmark 10-year Malaysian Government Securities (MGS) yield falling 4.8bps m-o-m to 3.84% as of end-July while the ringgit appreciated to 4.54 against the US dollar (endJune: 4.68). As of Aug 15, the 10-year MGS yield stood at 3.88% while the ringgit stood at 4.63 per US dollar. to implement Amanah Saham Rahmah, and how to establish a consolidated fund for investment purposes. “For example, the government will invest RM100,000 under Permodalan Nasional Bhd. The principal will remain with the government, and the dividends will be distributed among the hardcore poor families.” She said this when appearing as a guest on RTM’s Selamat Pagi Malaysia programme on Wednesday (Aug 16). Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh says the initiative is expected to help alleviate the cost of living burden of hardcore poor families. bernama the edge “We see immense potential in this company, and are committed to nurturing as well as providing the necessary expertise, operational and financial support that will enhance its operational capabilities, secure more projects, and usher in a new era of growth. “Cenergi is a key asset of UEM Group, and our goal is to ultimately position it as a green domestic champion to contribute significantly to Malaysia’s sustainable future,” he said. The group also shared that from August 2012 to May 2023, Cenergi via its various operating assets and investments had avoided over 2.4 million tonnes of carbon emissions, which translated into removing approximately 547,762 passenger vehicles from the road, or powering 310,234 homes for a year. Read the full story

THURSDAY AUGUST 17, 2023 5 THEEDGE CEO MORNING BRIEF

thursday AU G UST 17, 2023 6 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 16): Former Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz agreed with Tan Sri Muhammad Shafee Abdullah that there is no evidence to show that his client Datuk Seri Najib Razak instructed any officer in Bank Negara Malaysia (BNM) or Deutsche Bank to transfer US$1 billion of 1Malaysia Development Bhd funds to its joint-venture company with PetroSaudi International (PSI). Zeti agreed that there seemed no evidence to suggest Najib’s involvement. “It does not appear ... (that Najib gave instructions),” she said, adding that she was not in a position to know if such a directive or instruction was given by the former prime minister verbally. During cross-examination, Shafee asked whether in present times, it appeared to Zeti that there was any evidence that Najib gave such instructions. Shafee: There are no documents that suggest that there was an oral or written application (by Najib) to remit the amount of money to the two bank accounts? Zeti: Yes, correct. KUALA LUMPUR (Aug 16): Former Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz told the High Court that only when BNM had conducted its investigations in 2015 that it knew that US$700 million (RM2.28 billion) of US$1 billion of government-backed 1Malaysia Development Bhd (1MDB) funds had been transferred to an offshore account linked to fugitive financier Low Taek Jho, or Jho Low, because the 1MDB management was not forthcoming with information regarding the funds. Former prime minister Datuk Seri Najib Razak’s lawyer Tan Sri Muhammad Shafee Abdullah, who was cross-examining Zeti in the 1MDB-Tanore trial, had asked her about BNM’s knowledge of the US$1 billion remittance which 1MDB claimed was meant for the acquisition of 40% of shares in the 1MDB-PetroSaudi joint venture (JV). The sum was split into two tranches: US$700 million (which ended up with Good Star Ltd, an outfit linked to fugitive financier Jho Low) and US$300 million (which ended up with an outfit for the intended JV) in 2009. Zeti, the prosecution’s 46th witness, affirmed Shafee’s statement that it took seven years (from the remittance in 2009 till the investigations in 2015) for authorities to learn that the US$700 million (part of the remittance) ended up with an outfit linked to Jho Low. Shafee observed that this was quite a long time. Zeti said this was not unusual because she was told by financial authorities all over the world that it takes many years to uncover and detect such wrongdoings. “When we (BNM) went in to investigate in 2015, it was then that we uncovered that the money went to Good Star,” she said, adding that this was after the central bank Zeti agrees with Shafee it took seven years to find out US$700 mil was transferred to Jho Low-linked entity by Timothy Achariam & Tarani Palani theedgemalaysia.com by Hafiz Yatim, Timothy Achariam & Tarani Palani theedgemalaysia.com received intelligence from foreign regulators. Zeti previously testified that BNM had conducted on-site examinations on Ambank and Deutsche Bank Malaysia Bhd on March 20, 2015, to verify allegations regarding the transfer of the US$700 million 1MDB funds to Good Star’s account. 1MDB management lied to BNM Zeti then claimed that then 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi had written to BNM to tell the central bank that Good Star was linked to the JV and that the purpose of the transfer was the same — that it was meant for the JV with PetroSaudi International Ltd — the only change was that the funds were to be remitted to different accounts. She affirmed that BNM approval was needed to green light the remittance as it concerned funds raised for an investment. She then explained that prior to a tip-off from foreign authorities on where the money actually ended up, BNM had since 2010 conducted its own follow-up on the remittance of the US$700 million, more specifically to find out the status of the investments. “This is standard procedure, but no information was forthcoming from 1MDB’s management on the transactions,” she said. Shafee: Did you find something untoward? Zeti: It was not found out until much later. The first meeting on the remittance was in 2010... and 1MDB was not able to provide any satisfactory answers. She said that as a result of this, BNM had in 2014 blocked another such transaction from 1MDB. “That’s why in 2014 when they applied again [to make a remittance] in June, BNM rejected that application. “It is not that BNM did not do anything, we were not able to get any information from 1MDB,” she said. Zeti was BNM governor from 2000 to 2016, and she will continue to be cross-examined by Shafee when the trial continues on Wednesday (Aug 16) afternoon. Zeti: No evidence Najib instructed banks on US$1 bil transfer to purported PetroSaudi JV It was the fourth day on the stand for Zeti — the 46th prosecution witness in the trial — where Najib faces four charges of abuse of power and 21 counts of money-laundering of funds belonging to 1MDB. The PM and finance minister at the time, Najib also held the position of chairman of the board of advisers of 1MDB. Zeti was responding on the questionable US$1 billion transfer by 1MDB in Sept 29, 2009. Months earlier, 1MDB had raised some RM5 billion in Islamic Medium Term Notes (IMTN) and invested the funds in a PetroSaudi joint venture where it acquired a 40% stake. c ont inues on Page 7 The Edge Malaysia published this in its March 9-15 issue in 2015, a little over a week before BNM raided AmBank on March 20, according to Zeti’s witness statement, which she read out in court previously.

thursday AU G UST 17, 2023 7 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 16): Former Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz said the central bank stopped heavily indebted 1Malaysia Development Bhd (1MDB) from a “grand scheme” in 2014 to borrow even more money — to the tune of RM4.9 billion — from foreign offshore sources. This was especially since 1MDB was still unable to provide any information in 2014 on what funds were invested overseas, because “there were none”. Zeti, who was testifying as the prosecution’s 46th witness in former prime minister Datuk Seri Najib Razak’s 1MDB-Tanore trial, told the court on Wednesday (Aug 16) that there had been increasing suspicion over 1MDB and the dubious nature of its transactions. At the same time, the central bank had to consider that the state-owned entity may have to keep money overseas to repay its foreign debt. Najib’s lawyer Tan Sri Muhammad Shafee Abdullah had asked Zeti about the attempt by 1MDB to get BNM’s approval to raise an additional RM4.9 billion in 2014 by issuing more bonds. Zeti explained that based on increasing information from the foreign network of regulators, 1MDB wanted to use the amount raised to pay off existing debt, even though it was not able to explain how it became so indebted. “I would like to say that while these details were being addressed in 2015, even in 2014, they (1MDB) tried to take on foreign debt again, and had to make an application on June 3, 2014. This was well before the [information] from foreign authorities. “BNM rejected this application, and therefore it put a stop to the grand scheme they [had] developed,” she said. Zeti said 1MDB had appealed to the BNM stopped 1MDB from taking on more debt of RM5 bil in 2014, says Zeti by Timothy Achariam, Tarani Palani & Hafiz Yatim theedgemalaysia.com Read also: Court to decide on Aug 29 whether to allow Najib’s third-party application in US$1.18 bil SRC suit Rosmah seeks temporary release of passport to visit daughter in Singapore central bank to reconsider its decision but, she explained, BNM rejected the application as 1MDB had incurred a high level of debt since 2009, which was a big problem for the country. The government had guaranteed the US$1 billion raised by 1MDB in 2009, which it used to acquire a 40% stake in a joint venture (JV) with PetroSaudi International Ltd. The US$1 billion was to be remitted overseas to PetroSaudi, but the sum was split into tranches of US$700 million (which ended up with Good Star Ltd, an outfit linked to fugitive financier Low Taek Jho or Jho Low), and US$300 million (which ended up with an outfit for the intended JV). Having failed at getting BNM’s approval in 2014, Zeti said that 1MDB then tried to approach the Securities Commission Malaysia to help with its fundraising needs. However, Zeti said she did not know the details. 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 judge Datuk Collin Lawrence Sequerah continues on Thursday. from Page 6 Of the US$1 billion, a sum of US$700 million made its way into Good Star Ltd while the balance of US$300 million went into the JV, 1MDB PetroSaudi Cayman. Good Star, controlled by fugitive tycoon Low Taek Jho or Jho Low, was not related to PSI. Throughout proceedings this week, Shafee has questioned why the blame for the misdirection of funds has been pinned on Najib, rather than on 1MDB executives. On Tuesday (Aug 15), Zeti also revealed that BNM had recommended to then attorney general Tan Sri Mohamed Apandi Ali that three 1MDB senior executives be charged for the misdeed. She had named former 1MDB CEO Datuk Shahrol Azral Ibrahim Halmi, former executive director Casey Tang Keng Chee and Nik Faisal Ariff Kamil. However, Apandi decided not to charge any of them, and in Jan 2016, absolved Najib of any wrong-doing and halted investigations into 1MDB. It was only in 2018, after the 14th general election that the former prime minister was charged. Zeti cannot confirm that none of US$700 million went to Najib In the afternoon, Zeti agreed that the former prime minister opened his AmBank account two years’ after the US$1 billion transfer of the PSI joint venture company (JVCo). “Yes, Najib opened the AmBank account on Jan 13, 2011,” she said. Shafee: Would you agree that none of the US$700 million went to Najib? Zeti: I cannot confirm that. Zeti was then asked by Shafee whether, in her opinion, Najib was involved with 1MDB’s Murabaha arrangement with PSI in 2010, where the fund had invested a further US$1.5 billion as it was supposed to have a 40% stake in the PSI JVCo, 1MDB-PetroSaudi. To recap, in order to hide the failure of the joint venture and misrepresent the value of 1MDB’s investment overseas, as well as to circumvent audit concerns at that time to the fund and its investments, 1MDB issued a Special Rights Redeemable Preference Shareholders Resolution to restructure the equity investment in the joint venture to a convertible fixed income generating debt instrument in the form of Murabaha notes. A Murabaha Financing Agreement (MFA) was made between JVCo 1MDB PetroSaudi and 1MDB in June 2010 but backdated to March 22, 2010, to avoid audit concerns. Under the MFA agreement, 1MDB was required to pump another US$1.5 billion into the 1MDB-PetroSaudi JVCo to finance the obligations of the MFA and 1MDB, caused by the fraudulent transfer of US$500 million from 1MDB to the JVCo account. The trial before Court of Appeal judge Datuk Collin Lawrence Sequerah continues on Thursday. Najib is charged with four counts of abuse of power as former prime minister and finance minister to receive gratification of RM2.28 billion and 21 counts of money laundering amounting over RM4.3 billion. Presently, Najib is serving his 12-year jail sentence.

thursday AU G UST 17, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 16): Prominent economist Professor Dr Jomo Kwame Sundaram on Wednesday (Aug 16) called for the regularisation of foreign labour to recognise the participation of undocumented foreign workers in the country’s labour workforce under the Madani Economy. He said currently, Malaysia does not include undocumented foreign workers in its per capita income. “One of the features of the Madani Economy, which is interesting, is a commitment to increasing the labour share of income. Malaysia’s labour share of income is actually very low at 40%, and there is a pledge to increase it to 45%. This number is arbitrary in my view. “Increasing the labour share of national income is actually quite important, because we have a problem in Malaysia, where we pretend the contribution of undocumented labour is not there,” he said during a discourse series organised by INCEIF University here on Wednesday. Jomo was part of a panel session titled “Reviving the Malaysian Economy: Why, How and Who?”. He said foreign labour workers were collectively estimated at about 6.7 million about a decade ago, against an estimated labour force of about 15 million. Assuming that the documented foreign labour workers were at 2.2 million, if this 2.2 million is deducted from the 6.7 million, that means there are 4.5 million undocumented foreign workers, which is “almost one quarter of the country’s labour force, and you pretend that they are not there?” Jomo asked. “So basically, we are really overestimating per capita income, and we are overestimating productivity, because we do not have this in the denominator,” Jomo said. In October 2022, former minister in the Prime Minister’s Department (economy) Datuk Seri Mustapa Mohamed said the Department of Statistics Malaysia recorded 2.1 million foreigners working in various sectors up to June 2022. Columbia University’s Richmond Center for Business, Law and Public Policy senior fellow Dr Aamir A Rehman was also present in the session on Wednesday. Regulate foreign labour participation under Madani Economy, says Jomo KUALA LUMPUR (Aug 16): The police are expected to confiscate more assets related to the 1Malaysia Development Bhd (1MDB) case, following the testimony by lawyer Jasmine Loo Ai Swan, formerly a 1MDB general counsel. Inspector General of Police Tan Sri Razarudin Husain said the assets concerned would be forfeited by the government through a court process. “Jasmine Loo is still in police custody at the Bukit Aman Commercial Crime Investigation Department for investigation involving money laundering,” he said after launching the PDRM Madani Ride and Ipoh Super Bike Club (ISBC) in conjunction with the 216th Police Day and National Month at the Kuala Lumpur Police Training Centre here on Wednesday (Aug 16). A total of 150 high-powered motorcycle riders from the Royal Malaysian Police and ISBC were involved in a six-day convoy around Peninsular Malaysia, as well as South Thailand. Razarudin also said Loo would be handed over to the Malaysian Anti-Corruption Commission after the police complete their investigation. Loo, a former 1MDB group strategic executive director, is believed to have been part of fugitive businessman Low Taek Jho or Jho Low’s inner circle, and possess information regarding 1MDB. (Aug 16): Top US solar panel maker First Solar on Tuesday (Aug 15) said an audit of its manufacturing operations had uncovered unethical labour practices at its Malaysian factory, sending the company’s shares down about 5%. The revelation is the latest to tie the fast-growing solar energy industry to concerns about forced labour. First Solar has largely evaded that scrutiny because its panels do not contain polysilicon, a raw material primarily produced in China’s Xinjiang region. A new US law presumes that all goods from Xinjiang are made with forced labour. In a corporate sustainability report, First Solar said four on-site service providers in Malaysia had subjected migrant workers to unethical recruitment practices, including “the payment of recruitment fees in their home countries, passport retention, and the unlawful retention of wages”. First Solar said it had taken steps to return passports, wages and recruitment fees to the affected workers. The Tempe, Arizona, company said it encouraged other solar manufacturers to undertake similar audits. “The solar industry must hold itself to a higher standard,” the report said. “Quite simply, our industry’s work to power the energy transition and enable the fight against climate change does not serve as credits to offset its social and human rights obligations.” First Solar also produces panels in the US and Vietnam, and is planning to open a factory in India. The company’s shares were down 4.9% in afternoon trade at US$201 (RM932.94). More assets related to 1MDB case to be seized, says IGP First Solar audit reveals forced labour at Malaysian factory Bernama by Nichola Groom Reuters by Siti Radziah Hamzah Bernama bernama

THURSDAY AUGUST 17, 2023 9 THEEDGE CEO MORNING BRIEF TO BE REVEALED SOON HONOURING MALAYSIA’S BEST PERFORMING MID-CAP COMPANIES Presented by 2023

THURSDAY AUGUST 17, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 17): Ahead of corporations announcing their second-quarter (2Q) earnings, analysts have mixed expectations, as some are optimistic about a steady performance, and others projecting continued weakness from the preceding quarter. Areca Capital Sdn Bhd chief executive officer Danny Wong expects persistent weakness in 2Q earnings, mainly due to the looming threat of China’s economic slowdown and its far-reaching implications. “We expect that 2Q will not see any much improvement from 1Q. There were still weaknesses in 2Q, mostly because of China’s slowdown, which we think will be prolonged into the second half of the year,” Wong told The Edge. On the other hand, Rakuten Trade Sdn Bhd head of research Kenny Yee expects 2Q earnings to be little different from the previous preceding quarter, as there were no significant changes within the current economic environment. “Usually, in 2Q, there will be not much excitement, and I think [2Q earnings] will be maintained [from the previous quarter]. Overall this year, we are still expecting some decent earnings growth for corporates,” Yee said. While 2Q earnings may provide some hints as to how corporates may perform in the second half of the year, analysts do not expect the impact on market sentiment to be as pronounced for the rest of the year. Optimism and concerns duel as Corporate Malaysia reports 2Q earnings BY ANIS HAZIM theedgemalaysia.com “There will be some effect from the 2Q earnings, since our market has been trading at a very low valuation already, and we have been seeing a consistent inflow of foreign funds over the past few weeks. “But if some of the earnings come within expectations, that will be a bonus, but I don’t think they will play a major part in determining the market direction,” said Yee. Tricky for tech counters Wong said several sectors might have experienced lower earnings in 2Q as compared to 1Q, as companies were grappling with a weakening ringgit. Even export-oriented companies could see weaker quarterly earnings despite the weaker ringgit, as economic conditions outside of Malaysia remained soft, hurting demand. “Those companies that are affected by the currency rate might not do well. Some exporters will also be affected — despite the [weaker] ringgit — due to weaknesses elsewhere that affect imports from other countries,” he said. Among the closely-watched sectors in the unfolding narrative are technology-related companies, especially those in semiconductors. “We think that global demand for semiconductors is still recovering, and will only fully recover in 3Q or 4Q,” said Wong. Meanwhile, Yee said the “technology sector faced some headwinds in 2Q, especially those in the chip manufacturing activity”. However, he said automakers may not be affected, because of high consumer demand aided by the launch of new models. Some semiconductor companies have released their 2Q results, including ViTrox Corp Bhd, which saw lower profit and revenue year-on-year (y-o-y), amid still languishing customer demand. ACE-Market-listed SFP Tech Holdings Bhd, on the other hand, bucked the trend, after it recorded higher profit and revenue y-o-y, which were driven by higher revenue and lower expenses, due to the absence of non-recurring initial public offering costs incurred in 2Q. 2Q earnings of semiconductor stocks on Bursa Malaysia Companies Net profit Changes % Changes % Revenue Changes % Changes % (RM mil) (y-o-y) (q-o-q) (RM mil) (y-o-y) (q-o-q) ViTrox Corp Bhd 37,655 -26.67 14.12 149,390 -21.12 12.04 Frontken Corp Bhd 31,914 -0.89 35.32 121,152 -5.5 6.29 Unisem (M) Bhd 23,932 -88.37 142.81 378,660 -18.4 6.95 SFP Tech Holdings Bhd 10,631 63.23 5.23 36,441 74.37 5.28 Globetronics Technology Bhd 7,078 -36.74 114.03 31,514 -34.13 -4.87 The results based on the second quarter of the year (2Q2023) Source: Bursa Malaysia Analysts view the plantation sector as a “dark horse” due to its potential upward earnings, on the back of steady crude palm oil (CPO) prices. In 1Q, plantation companies delivered lower profits due to lower CPO prices. CONTINUES ON PAGE 11 2Q earnings of plantation stocks on Bursa Malaysia Companies Net profit/loss Changes % Changes % Revenue Changes % Changes % (RM mil) (y-o-y) (q-o-q) (RM mil) (y-o-y) (q-o-q) United Plantations Bhd 159,015 -13.87 41.86 470,074 -32.97 2.19 Chin Teck Plantations Bhd * 11,441 -62.23 291.68 47,032 -43.55 1.92 Cepatwawasan Group Bhd 4,090 -74.14 46.59 72,642 -32.29 4.47 Harn Len Corp Bhd -0.482 - 93.67 23,246 - -16.01 The results based on the second quarter of the year (2Q2023), while * based on 3Q2023 Source: Bursa Malaysia

THURSDAY AUGUST 17, 2023 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 15): VSTECS Bhd’s net profit for the second quarter ended June 30, 2023 (2QFY2023) rose 20.28% to RM15.65 million, from RM13.01 million a year before, on higher forex fair gain of RM4 million, despite lower revenue. Earnings per share increased to 4.4 sen per share in 2QFY2023, from 3.6 sen per share a year ago, the information and communications technology (ICT) company’s filing with Bursa Malaysia showed on Wednesday (Aug 16). Quarterly revenue, however, dropped 14.02% to RM608.79 million, from RM708.09 million previously, due to a slowdown in the consumer market. Notably, the latest revenue of RM608.79 million is its lowest in two years, when it recorded RM563.9 million in 2QFY2021. For the cumulative six-month of FY2023 (6MFY2023), its net profit rose 22.51% to RM30.50 million, from RM24.89 million a year before, due to higher forex gains. This was despite revenue falling 5.79% to RM1.27 billion, from RM1.35 billion previously. Looking forward, the group said demand for consumer ICT products will continue to drop and this worldwide trend is expected to continue into 2024. Commercial and enterprise projects are keeping their pace but there is a dearth of large public sector projects, it added. On a positive note, the group said it is capitalising on many data centre opportunities in Malaysia and well-positioned to supply them with a complete solution comprising ICT products like servers, storage systems, network devices and enterprise software as well as digital power of UPS (Uninterrupted Power Supply), racking and cooling solutions. “Overall, we remain cautious on prospects for 3QFY2023 and the balance of the year,” it noted. VSTECS’ shares closed unchanged at RM1.38, giving the group a market capitalisation of RM497 million. The stock has rallied 30% in the past year from RM1.06. VSTECS 2Q net profit rises 20% on higher forex gain KUALA LUMPUR (Aug 16): S P Setia Bhd’s net profit declined 46% for the second quarter ended June 30, 2023 (2QFY2023) as increased finance costs and foreign exhange losses offset the group’s higher gross profit. In a filing to Bursa Malaysia on Wednesday (Aug 16), it said earnings fell to RM43.06 million or 1.06 sen per share in 2QFY2023, from RM80.09 million or 1.97 sen per share a year ago, as finance costs rose 57% to RM94.1 million from RM60.01 million over the same period. During the quarter under review, S P Setia also booked an unrealised foreign exchange loss of RM17.53 million versus a forex gain of RM8.12 million a year ago. These downsides offset the group’s operational efficiencies, which saw gross profit rise 13% to RM311.29 million in 2QFY2023 from RM275.92 million in the previous corresponding quarter, despite revenue declining 7.4% to RM942.72 million from RM1.02 billion. S P Setia said its 2QFY2023 earnings were also weighed by lower contributions from Singapore and the central region of Malaysia. For the first half of the year (1HFY2023), the group’s net profit fell by 33% to RM98.51 million from RM147.59 million in the previous corresponding period, while revenue inched up 1.3% to RM1.91 billion from RM1.89 billion. In a separate statement, S P Setia said it has secured total sales of RM2.56 billion for 1HFY2023, equivalent to 60% of its FY2023 sales target. “On top of that, the group has secured total bookings of RM470 million as at June 30, 2023. With the strong bookings in the pipeline, the key focus is to convert these bookings into sales in a timely manner,” it said. S P Setia currently has 44 ongoing projects and unbilled sales totalling RM6.82 billion as at June 30, 2023, giving it earnings visibility in the short to mid-term. S P Setia registers lower 2Q earnings on higher finance costs, forex losses BY CHESTER TAY theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com Read the full story Plantations could be a dark horse Analysts view the plantation sector as a “dark horse” due to its potential upward earnings, on the back of steady crude palm oil (CPO) prices. In 1Q, plantation companies delivered lower profits due to lower CPO prices. “I think the dark horse could be the plantation sector, because CPO [prices] should remain elevated for the rest of this year,” said Yee. Wong said there were initial concerns over lower CPO prices, which turned worrisome for plantation companies in 1Q. “Previously, we were worried about the plantation sector, because of lower CPO prices, but CPO prices have regained their momentum, so the risk [for CPO prices] to go down is very low now, so we are slightly positive on plantations,” he said. Plantation companies that have released their 2Q results for this year so far are United Plantations Bhd, Chin Teck Plantations Bhd, Cepatwawasan Group Bhd and Harn Len Corp Bhd. Most posted improved quarterly earnings, with Chin Teck’s significant improvement supported by higher average CPO selling prices, and better sales volumes of fresh fruit bunches and palm kernel. Banks to sustain earnings Banks remain a top sector pick as they are projected to continue on their growth trajectory, riding on rising interest rates. Wong noted that they would “continue doing well in 2Q”. Kenanga Research’s recent strategy note shows that it also remains bullish on banks, given their value play and earnings resilience. Apart from banks, it observed that telecommunications companies are also poised for further rerating as and when the roll-out of the market-driven dual network 5G model is firmed up. FROM PAGE 10 BLOOMBERG

THURSDAY AUGUST 17, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 15): Sam Engineering & Equipment Bhd’s net profit fell 12.73% to RM20.53 million or 3.79 sen per share for the first quarter ended June 30, 2023 (1QFY2024), from RM23.53 million or 4.35 sen per share a year ago, as lower gross profit was further impacted by impairment losses as well as higher operating and finance costs. In the group’s bourse filing on Wednesday (Aug 16), it said profitability was also hit by other operating expenses which jumped nearly fourfold to RM4.56 million, from RM1.17 million previously, and higher net finance costs of RM6.35 million, which also surged more than five times from RM1.14 million previously. Its profit was also impacted by higher distribution and administrative expenses of RM14.32 million, up 9.56% from RM13.07 million a year ago, as well as a net loss on impairment of financial instruments and contract assets of RM389,000, versus a net gain of RM949,000 a year ago. Revenue for the quarter also decreased by 13.02% to RM307.89 million, from RM353.97 million a year before, given the lower contribution from the equipment segment, dragged by lower sales and higher interest expense, but mitigated by an increase in revenue contribution from the aerospace segment amid an increase in sales and government grant received. On its prospect, the group said it is increasing production rates at a steady pace as the aerospace industry works to overcome supply chain constraints to recover to pre-pandemic levels by 2024/2025. It also quoted data provided by Airbus and Boeing, which added another 1,000 aircraft into their backlog order during the Paris airshow in June 2023 — claiming that its products are used in the majority of these aircrafts. It also cited the semiconductor equipment and materials international (SEMI)’s July report, which forecasted that global Sam Engineering’s 1Q earnings down 13% on lower revenue, higher costs KUALA LUMPUR (Aug 16): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) registered a net loss of RM388.7 million for the second quarter ended June 30, 2023 (2QFY2023), versus a net profit of RM21.97 million a year earlier, dragged by the group’s additional cost provisions for ongoing projects. MHB, which is controlled by Petroliam Nasional Bhd (Petronas), however, saw its revenue jump over two times to RM1.06 billion from RM400.63 million a year ago, mainly due to higher revenue from the heavy engineering segment. The group posted a loss per share of 24.30 sen, against earnings per share of 1.40 sen previously, according to a bourse filing on Wednesday (Aug 16). The heavy engineering segment recorded a revenue of RM990.9 million, from RM309.9 million for the previous corresponding quarter, driven by higher revenue from ongoing projects. For the cumulative first six months ended June 30, 2023, the group posted a net loss of RM385.16 million, compared to a net profit of RM24.69 million a year before, while revenue increased 89.7% to RM1.55 billion from RM818.41 million. On its prospects, MHB said that the heavy engineering segment will continue to face challenges in executing ongoing proMHB slips into the red in 2Q on cost provisions for ongoing projects BY ANIS HAZIM theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com jects within the originally budgeted margins, due to the impact of raw material price escalations and global supply chain disruptions. “These projects were awarded on a lump sum EPCIC (engineering, procurement, construction, installation and commissioning) basis by clients a few years ago. The group will continue to pursue the recovery of these inflationary and schedule impacts from clients,” it said. Meanwhile, demand for dry-docking activities is expected to increase, as vessel owners prepare for a rise in seaborne trade requirements for the remainder of the year. “Nevertheless, stiffer competition among shipyards is expected to continue to impact marine business operations since the reopening of China’s borders. As such, the group anticipates the marine segment to remain challenging,” it noted. The group said that it will continue to explore opportunities in both domestic and international markets, with increased emphasis on decarbonisation and renewable energy. “The group is also looking into ways to improve its contracting strategies with clients through the alliance concept or on a cost-plus basis, where possible, to mitigate the risks of global inflation for future projects,” it added. At Wednesday’s noon break, shares in MHB closed half a sen or 0.87% higher at 58 sen, valuing the group at RM928 million. sales of total semiconductor manufacturing equipment by original equipment manufacturers (OEMs) will bounce back to close to US$100 billion (RM464.2 billion) in 2024 from a projected contraction to US$87.4 billion in 2023, following an industry record of US$107.4 billion in 2022. “The recovery will be driven by both the front-end and back-end segments, with growing focus on electrification for sustainability, shifting to cloud-based services and the increased demand for AI solutions,” the report read. Shares of SAM Engineering closed down 12 sen or 2.42% to RM4.83, giving the group a market capitalisation of RM2.62 billion. The stock has recovered 26.77% from this year’s low of RM3.81 on May 19. More on corporate earnings: SEGi’s 2Q net profit drops 80% as more students graduate, costs increase Mestron’s 2Q net profit doubles on lower material price, higher sales demand MHB.COM.MY

THURSDAY AUGUST 17, 2023 13 THEEDGE CEO MORNING BRIEF is your company one of them? honouring Malaysia’s outstanding corporate performers TM Main Sponsor Official Car Supporting Sponsor

THURSDAY AUGUST 17, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 16): PublicInvest Research downgraded UEM Sunrise Bhd to an “underperform”, as it believes that Johor — which is home to the largest residential property overhang in the country — will need more time to digest the supply glut. The research house, however, raised its target price for the property developer to 42 sen from 33 sen earlier to narrow the valuation discount to about 0.65 times its net tangible assets. Noting that the share price had exceeded its earlier estimates after the proposal to revive the High Speed Rail between Kuala Lumpur and Singapore was mooted in July, PublicInvest Research said it is currently trading at close to 30 times consensus forecast earnings for the financial year ending Dec 31, 2024 (FY2024). Meanwhile, the research outfit maintained its earnings estimates for UEM Sunrise after the group announced that it intends to build 430 apartments on its new Subiaco East site in Perth, Western Australia. On Tuesday (Aug 15), the group announced that it had acquired the 1.22-acre (0.49-hectare) site for A$22.2 million, or about RM66.8 million, from DevelopmentWA. Currently, PublicInvest Research estimated UEM Sunrise’s net profit at RM80.9 million for FY2023, RM86 million for FY2024, and RM92.5 million for FY2025, underpinned by revenue of RM1.01 billion for the three years. At the time of writing on Wednesday, UEM Sunrise had risen 1.5 sen or 2.63% to 58.5 sen a share, with a market capitalisation of RM2.93 billion. Read also: Carlsberg’s sales channels may remain subdued in 3Q but improve in 4Q — Maybank IB TA Securities raises target price for Heineken to RM31.90 PublicInvest Research raises target price of UEM Sunrise to 42 sen despite downgrade to ‘underperform’ KUALA LUMPUR (Aug 16): BMI, a Fitch Solutions company, has held to its average price forecast of RM3,800 per tonne for Bursa Malaysia-listed third-month palm oil futures contracts in 2023. In a note on Tuesday (Aug 15), the firm said contracts have traded at an average price level of RM3,804 per tonne on a year-todate (YTD) basis and at an average price level of RM3,753 per tonne through the third quarter of 2023 (3Q2023) to date. “Similarly, we hold to our forecast for 2024, anticipating average palm oil prices of RM3,400 per tonne. “As per our forecast of 2Q2023, the current El Niño event poses the major upside risk to our average palm oil price outlook over the next 12 to 18 months,” it said. BMI said much depends on the eventual strength of the El Niño event itself. It said during the 2014-16 El Niño, below-average moisture levels across Indonesia and Malaysia saw monthly palm oil prices begin to track upwards in 4Q2015 and peaked in 2Q2016, gaining about RM1,000 per tonne over the period. “We forecast that global palm oil production will increase by 3.6% year-onyear (y-o-y) to 80 million tonnes (subject to downside El Niño-driven risks) and that global palm oil consumption will increase by 3.7% y-o-y to 78.9 million tonnes in 2023/24, which will see the global palm oil balance remain more-or-less unchanged when compared to the estimated 1.1 million tonne surplus achieved in 2022/23,” it said. BMI said prices have remained rangeBMI sees palm oil prices averaging RM3,400 per tonne in 2024 bound through 3Q2023, having not tested either their minimum or maximum limits of 1H2023, and it anticipated that a two-way short-term risk profile will see the continuation of this trend through the remainder of the calendar year. “From a bearish perspective, elevated inventories in India and Mainland China (in conjunction with a commensurate accumulation of palm oil inventories in Malaysia), an expected increase in global soybean production through the 2023/24 season, and the upcoming September-October period of peak palm fruit yields across the two major palm fruit producers all point to downward pressure on prices through the remainder of 2H2023. “Our Oil & Gas team, moreover, expect oil markets to soften over 4Q2023 after benefiting from support in 3Q2023,” it said.On the other hand, BMI said bullish signs can be found in the fact that sunflower oil prices are set to receive further upward price pressure following the July 17 collapse of the Black Sea Grain Initiative and a related uptick in Black Sea hostilities. In addition, the approach of the peak of the current El Niño event (set to occur at the end of 2023) could see an increase in palm oil demand, especially if expectations for a severe El Niño increase. Finally, the downward trend in the palmsoy oil price differential, which became evident in May 2023, will support levels of consumption, it said. BY SURIN MURUGIAH theedgemalaysia.com BY LAM JIAN WYN theedgemalaysia.com BMI palm oil price forecast (RM per tonne) 2022 Latest 2023 2023F 2024F 2025F 2026F 2027F avg avg BMI forecast 4,910 3,752 3,804 3,800 3,400 3,000 2,600 2,400 Bloomberg consensus - - - 3,800 3,400 3,100 2,700 2,500 F = BMI forecast. Note: Bursa Malaysia-listed third-month palm oil futures contracts; last updated on Aug 9, 2023. Sources: Bloomberg, BMI UEM Sunrise Bhd 0 50 100 150 200 250 300 350 Aug 16, 2022 Aug 16, 2023 0 20 40 60 80 Vol (mil) Sen 61 sen 30.4 sen Source: Bloomberg

THURSDAY AUGUST 17, 2023 15 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF Eversendai wins RM188 mil worth of jobs in Saudi Arabia, India KUALA LUMPUR (Aug 16): Eversendai Corp Bhd said it had secured RM188 million worth of projects in Saudi Arabia and India for structural steel works. In a bourse filing on Wednesday (Aug 16), the company, however, did not reveal the parties that awarded these jobs to it. “We are in the process of finalising a local partner to spearhead Eversendai’s expansion and growth in Saudi Arabia,” said group managing director Tan Sri AK Nathan in a statement to the bourse. “We are also in the process of establishing a factory with an annual fabrication capacity of 60,000 tons near Riyadh to support the huge structural steel requirement,” he added. The group, which was lossmaking since the fourth quarter ended Dec 31, 2019 (4QFY2019) before turning profitable in 1QFY2023, said diversifying into the Saudi Arabia economy is “vital” to Eversendai’s sustainability. Eversendai said it is optimistic and had stepped up efforts to secure more projects. — by Chester Tay Seacera Group’s PN17 status to be uplifted on Thursday KUALA LUMPUR (Aug 16): Seacera Group Bhd will no longer be a Practice Note 17 (PN17) company from Thursday (Aug 17). In a bourse filing, Seacera said the uplifting of the PN17 status came after the bourse regulator, in a letter on Wednesday, granted the group a waiver from having to submit a regularisation plan. The group had applied for the upliftment in April. Seacera, which is principally engaged in the manufacturing and trading of ceramic tiles, fell into PN17 status in April 2019 after it defaulted on a payment of principal and profits to AmBank Islamic Bhd. The group’s total facilities outstanding with AmBank were RM22.15 million at the time. For the nine months ended June 30, 2023, Seacera’s net profit rose 19.52% to RM5.31 million, from RM4.44 million a year before, despite revenue declining by 27.81% to RM39.68 million from RM55.22 million. — by Justin Lim PWF Corp proposes one-for-three bonus issue KUALA LUMPUR (Aug 16): PWF Corp Bhd, whose share price has risen by 69% over the past one year, has proposed a bonus issue of up to 74.46 million shares on the basis of one bonus share for every three existing shares. The entitlement date for the bonus issue will be determined later, the Penang-based poultry player said in a bourse filing on Wednesday (Aug 16). For illustration purposes, based on the five-day volume weighted average market price of PWF Corp shares up to the latest practicable date of 74.09 sen, the theoretical exbonus share price will be approximately 55.57 sen, the group said. PWF said the bonus issue will allow its shareholders to participate more in the group’s equity while maintaining their percentage of equity interest, and is also expected to enhance the marketability and trading liquidity of PWF shares. The bonus issue is expected to be completed during the fourth quarter of 2023. — by Justin Lim Awanbiru Technology fails in its bid for more time to submit regularisation plan KUALA LUMPUR (Aug 16): AwanBiru Technology Bhd (Awantec) said Bursa Securities has rejected the company’s application for a further extension of time to submit its regularisation plan to the relevant authorities. The rejection was because the company has not demonstrated to the satisfaction of Bursa Securities any material development towards the finalisation and submission of the regularisation plan, said ICT software service provider in a bourse filing on Wednesday (Aug 16). Awantec (formerly known as Prestariang Bhd) was required to submit a regularisation plan after being classified as an affected listed issuer in January 2021, following the termination of the membership of its wholly-owned unit Prestariang Systems Sdn Bhd in the Microsoft Partner Network by Microsoft. On Feb 13 this year, Bursa had granted Awantec a six-month extension until July 28 to submit its regularisation plan. On July 21, Awantec applied for a further extension to submit the regularisation plan, which has now been rejected. Bursa Securities on Wednesday also issued a show-cause notice to Awantec, asking the company to provide its representations by Aug 23 as to why a suspension should not be imposed on the trading of the company’s shares, as well as why Awantec should not be delisted from the local bourse. — by Syafiqah Salim MPOB, Petronas to study use of palm waste as aviation fuel KUALA LUMPUR (Aug 16): The Malaysian Palm Oil Board (MPOB) and state oil firm Petronas have signed an agreement to study the use of used cooking oil and palm oil waste as sustainable aviation fuel. The two organisations signed a memorandum of understanding (MOU) on Aug 14 to explore the potential of palm-based products and wastes, such as used cooking oil and palm oil mill effluent, as the main raw materials for local bio-refineries to produce sustainable aviation fuel. “The signing of the MOU is also in line with the National Energy Policy 2022-2040 to reduce carbon emissions and make the energy sector a catalyst for the nation’s socioeconomic development,” MPOB said in a statement on Wednesday (Aug 16). — Reuters Serba Dinamik faces possible delisting on Aug 28 KUALA LUMPUR (Aug 17): Serba Dinamik Bhd may be delisted from the Main Market of Bursa Malaysia on Aug 28, as Bursa Securities has rejected the troubled oil and gas company’s application for more time to submit its regularisation plan. The Practice Note 17 (PN17) company has until Aug 23 to appeal against the delisting, according to a Bursa Malaysia filing on Wednesday (Aug 16). As of now, Serba Dinamik’s securities, which have been suspended since December 2022 following its failure to submit its 2022 annual report, will remain so. The counter was last traded at two sen, giving the company a market capitalisation of RM75 million. Serba Dinamik fell into PN17 status on Jan 6 last year, after its external auditor Nexia SSY PLT expressed a disclaimer of opinion on its audited financial statements for the 18-month financial period ended June 30, 2021, saying it had not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the statements. The group had previously sought and been given more time to submit its regularisation plan to address its financial condition, but still failed to do so. When it submitted its last application for more time on July 5, it said it was still in the midst of formulating the plan. The group reported a net loss of RM972.91 million for its the third quarter ended March 31, 2023, more than double the RM434.19 million it incurred in the preceding year’s corresponding quarter, as revenue fell to RM6.18 million from RM205.48 million due to a decline in operation and maintenance activities in overseas market. — by Anis Hazim

THURSDAY AUGUST 17, 2023 16 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Aug 16): The Department of Veterinary Services (DVS) has yet to receive any reports of a shortage of chicken supply at the farm level, following claims that it had caused the increase in the price of chicken. The department said that it has also not received reports of any poultry disease outbreaks which cause mass deaths. “Therefore, DVS asks the public not to panic,” the department said in a statement on Wednesday (Aug 16). It was commenting on a news article entitled Bekalan kurang punca harga ayam naik — Pembekal (Shortage of supply causes prices of chicken to rise — Suppliers) published on Tuesday (Aug 15). According to the report, the shortage of chicken supply a few days ago was the reason why the price of chicken in the market had increased from RM9 to RM9.28. DVS said that any shortage of supply can be reported immediately to the department, via the nearest district veterinary offices or state DVS, or via e-mail pro@dvs. gov.my or contact 03-8870 2000. No reports of chicken shortage at farm level — DVS GEORGE TOWN (Aug 16): Members of the Penang state executive council (exco) took their oath of office on Wednesday (Aug 16) in a ceremony held before Yang di-Pertua Negeri Tun Ahmad Fuzi Abdul Razak. The swearing-in ceremony, which started at about 10am, was held at Dewan Sri Pinang. The line-up of the state exco included eight new faces. They are Batu Maung assemblyman Prof Datuk Dr Mohd Abdul Hamid, Sungai Acheh assemblyman Rashidi Zinol, Paya Terubong assemblyman Wong Hon Wai, Sungai Pinang assemblyman Lim Siew Khim, Jawi assemblyman H’ng Mooi Lye, Padang Lalang assemblyman Gooi Zi Sen, Perai assemblyman Datuk Seri S Sundarajoo, and Pantai Jerejak assemblyman Fahmi Zainol. KUALA TERENGGANU (Aug 16): The Terengganu government will focus on developing industries other than petroleum to reduce the state’s dependence on annual oil royalty payments. Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar said it plans to develop new industrial areas in Besut and Setiu, which had previously received less attention and development. “Taking into considering the East Coast Rail Link (ECRL) project, which focuses on cargo [movements], we need to grab the opportunity now, as it would be too late if we just wait until the ECRL’s operations start three years from now. “As such, we will swiftly mobilise the entire [state government] machinery towards creating new industrial areas, especially in locations that have not received much focus before, such as in the northern part of the state,” he said after chairing the state executive council meeting here on Wednesday (Aug 16). Ahmad Samsuri said Terengganu managed to reduce its dependence on petroleum royalty by 4% in the last term. He said that among the measures taken were introducing new sources of taxation, and gazetting the Water Resources (Terengganu) Enactment 2020, which generated more revenue for the state. “We expect to achieve RM100 million in revenue from water resources each year. We realise that it is not easy to do, but we managed to collect revenue in the first year. “Additionally, we will look at new taxes, including the mineral tax, which has not been reviewed for a long time,” he added. Read also: Terengganu MB announces exco portfolios Veteran politician advises Terengganu reps to be responsible lawmakers and not be biased Penang exco line-up takes oath of office Terengganu MB aims to reduce state’s dependence on petroleum royalty The other two, Datok Keramat assemblyman Jagdeep Singh Deo and Tanjong Bungah Assemblyman Zairil Khir Johari, are reappointed as state exco. The line-up also saw Rashidi as the sole Barisan Nasional (BN) candidate and Lim as the sole women representative in the state exco. In the state elections on Saturday, the Pakatan Harapan-BN coalition won 29 seats, while Perikatan Nasional won 11 seats. Meanwhile, Chief Minister Chow Kon Yeow told a media conference that he will hold the portfolios of finance, economic development, and land and communications. Deputy Chief Minister I Mohamad is responsible for the portfolio of Islamic religious development, education, higher education and community unity, while Deputy Chief Minister II Jagdeep holds the portfolio of human capital development, science and technology. Rashidi is the State Trade and Entrepreneurship and Rural Development Committee chairman, Zairil is the State Infrastructure, Transport and Digital Development Committee chairman, and Wong is the State Tourism and Creative Economy Committee chairman. Lim is given the portfolio of social development, welfare and non-Islamic affairs, followed by H’ng (local government and town and country planning), Gooi (youth, sports and health), Sundarajoo (housing and environment), and Fahmi (agrotechnology and food security and cooperative development). “Their appointments have received the blessing of their respective party central leadership, while for the post of the deputy State Legislative Assembly speaker, we propose that it be allocated to a representative from Amanah,” said Chow. Bernama Bernama Bernama Penang Chief Minister Chow Kon Yeow told a media conference that he will hold the portfolios of finance, economic development, and land and communications. BERNAMA

THURSDAY AUGUST 17, 2023 17 THEEDGE CEO MORNING BRIEF

THURSDAY AUGUST 17, 2023 18 THEEDGE CEO MORNING BRIEF

THURSDAY AUGUST 17, 2023 19 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): China violated its fundamental trade commitments when it imposed tariffs on US$2.4 billion (RM11.1 billion) worth of US products in retaliation for former president Donald Trump’s steel and aluminium duties, the World Trade Organization (WTO) said. In a ruling published on Wednesday (Aug 16), a panel of three WTO experts agreed with Washington’s claims that China’s tariffs denied the treatment as a so-called most favoured nation, and that Beijing violated other trade concessions it made when it joined the WTO. The organisation’s most favoured nation principle is a commitment by its 164 members to treat other signatories in an indiscriminate manner or else provide WTO rejects China’s Trumpera 2018 tariffs against US exports compensation in the form of trade concessions. Either China or the US may appeal the ruling within the next 60 days. If Beijing appeals, it will act as a veto because the WTO appellate body has been non-functional since 2019. A spokesman from the Chinese mission to the WTO did not respond to Bloomberg’s request for comment. The dispute dates back to the early days of Trump’s trade war when his administration imposed 25% tariffs on global steel imports and 10% tariffs on aluminium imports. The US metal tariffs, which were aimed at curbing an influx of cheap Chinese steel and aluminium, provoked a response from Beijing, which filed a WTO complaint and imposed tariffs on a range of imported US goods including aluminum waste and scrap, pork, fruits and nuts. The US responded with a counter dispute alleging the Chinese duties and separately claimed that the metal tariffs were necessary to protect US national security. In December 2022, a separate WTO panel said the US metal duties were not justified under the WTO’s national security exemption in a ruling that the Biden administration strongly rejected. Trump’s tariffs on Chinese steel and aluminium still remain in effect. BY BRYCE BASCHUK Bloomberg Aluminium bar stock is seen inside a factory in Dongguan, China. The US metal tariffs, which were aimed at curbing an influx of cheap Chinese steel and aluminium, provoked a response from China. China’s tariffs denied the treatment as a socalled most favoured nation, and that Beijing violated other trade concessions it made when it joined the WTO. REUTERS JAKARTA (Aug 16): Indonesian President Joko Widodo proposed a budget of 3,304.1 trillion rupiah (RM1 trillion) on Wednesday (Aug 16) for 2024, his final year in office, promising to guard the economy against global challenges and keep food prices stable. The budget proposal, tabled in parliament, is about 6% bigger than this year’s spending plan, which has been revised up to 3,123.7 trillion rupiah. It also assumes 5.2% economic growth next year, below 2023’s target of 5.3%. Jokowi, as the president is popularly known, said he targets the 2024 budget deficit to be at 2.29% of gross domestic product, roughly the same as the latest outlook for this year’s deficit of 2.28%. “The 2024 state budget architecture must be able to respond to economic dynamics, address challenges and optimally support the development and welfare agenda,” Jokowi said in his annual budget speech to parliament, a day ahead of the anniversary of Indonesia’s independence. The president offered no specific fiscal policy for 2024, but he underscored the importance of food and energy security and building a competitive defence industry. He also blamed global supply chain disruption on geopolitical fragmentation. Jokowi proposed allotting 108.8 trillion rupiah for food security, to maintain stable prices, increase farm output and further develop the government’s ongoing food estate programme. Infrastructure was allotted 422.7 trillion rupiah, including for Jokowi’s flagship project to build a new capital city on Borneo island, called Nusantara. Jokowi has previously set a target to move some government offices to Nusantara next year from Jakarta. The budget proposal targets government revenues to rise 5.5% next year to 2,781.3 trillion rupiah, from this year’s 2,637.2 trillion rupiah. Jokowi said inflation will be managed around 2.8% next year, within the central bank’s target range of 1.5% to 3.5% for 2024. Annual inflation in July was 3.08%. His proposal also assumed the rupiah exchange rate to average around 15,000 a dollar and the 10-year bond yield at 6.7% and Indonesia’s oil and gas lifting at 625,000 barrels per day and 1.03 million barrels of oil equivalent per day. Read also: Indonesia launches WTO dispute over EU duties on biodiesel imports Indonesian president tables US$216 bil budget for 2024 BY STEFANNO SULAIMAN & GAYATRI SUROYO Reuters REUTERS

THURSDAY AUGUST 17, 2023 20 THEEDGE CEO MORNING BRIEF WORLD SHANGHAI/SINGAPORE (Aug 16): Yield differentials between China and the US widened to their highest in 16 years on Wednesday (Aug 16), as investors speculated that China’s central bank would ease monetary policy further after a surprise rate cut, even if it puts the yuan under pressure. The People’s Bank of China (PBOC) unexpectedly cut key policy rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery. And markets widely expect the PBOC to loosen monetary policy further. Earlier in the session, the PBOC also ramped up liquidity injection by offering the most short-term cash through seven-day reverse repos in open market operations since February. China remains an outlier among global central banks as it has loosened monetary policy to shore up a stalling recovery whereas others, particularly the United States, have been in tightening cycles as they battle high inflation. But the divergent monetary policy paths between the world’s two largest economies widened the yield gap to 164 basis points between China’s benchmark 10-year government bonds and US Treasuries s — the highest since February 2007. “The significant yield gap, the largest since 2007, could be a key reason why capital remains planted in US dollars and US Treasuries for the time being,” said David Chao, global market strategist at Asia-Pacific at Invesco. “More broadly, recent economic data releases in China have been disappointing, while those in the US have surprised to the upside.” The widening yield gap reduced foreign appetite in China’s onshore yuan bonds, with latest official data showing overseas investors’ holding declined in July. Tumbling credit growth and rising deflation risks in July warranted more monetary easing measures to arrest the slowdown, market watchers said, while default risks at some major property developers and missed payments by a private wealth manager also hurt confidence in China’s financial markets. In derivatives market, one-year interest rate swaps , a gauge that measures investor expectations of future funding costs, fell to 1.84% this week, the lowest since September 2022, suggesting some market participants are pricing in further rate reductions. But the expectations for further monetary easing and capital outflow risks has pressure on the Chinese yuan to depreciate further. The yuan has lost about 5.5% against the dollar since the start of the year, making it one of the worst performing Asian currencies. “The PBOC will need to do more to manage the pace of yuan depreciation,” Eugenia Victorino, head of Asia strategy at SEB, said in a note. Read also: US Fed minutes set to show only a minority saw end of tightening Yield gap between China and US widens to highest since 2007 after surprise rate cut (Aug 16): US factory production rose in July for the first time in three months, boosted by a surge in motor vehicle output that helped manufacturing to stabilize. Output increased 0.5% from June, erasing the prior month’s decline, Federal Reserve data showed on Wednesday (Aug 16). Total industrial production, which includes mining and utilities, jumped 1%, the most since the start of the year. Factory production was led by a 5.2% surge in motor vehicle output. The annualised rate of car assemblies increased to 11.87 million units, the fastest rate since the end of 2018. The data showed that manufacturing output excluding motor vehicles rose just 0.1% after falling in the previous two months. Even with the monthly advance, the Fed’s index of factory output was down 0.7% from a year ago, with manufacturers still facing challenges of a struggling global economy. “With downward revisions of past data accounting for the upward surprises in the July report, and with the headline being driven more so by weather than by demand for core goods, we continue to view the manufacturing landscape as softening as demand for core goods wanes,” said Bloomberg Economics’ Stuart Paul While recent surveys of purchasing managers at manufacturers continue to show activity is shrinking, the pace of decline is no longer steepening. Production of business equipment rose by the most in three months, the Fed’s report showed. Output of all consumer goods increased 1.4%, the biggest gain since the end of 2020. Retail sales in July rose by more than forecast and prior months were revised higher, according to government data released Tuesday. The Fed’s report showed capacity utilisation at factories, a measure of potential output being used, increased to 77.8%. Overall utilisation also increased. Utility output jumped 5.4%, the first gain in four months, as higher temperatures across the country bolstered demand for air conditioning. Mining production also rose. Meanwhile, production of defence-related goods continued to rise. The Fed’s index of military and space equipment increased another 1% in July to a record. US factory output rises on surge in motor vehicle production BY VINCE GOLLE Bloomberg BY WINNI ZHOU & TOM WESTBROOK Reuters Factory production was led by a 5.2% surge in motor vehicle output. The annualised rate of car assemblies increased to 11.87 million units, the fastest rate since the end of 2018. BLOOMBERG

THURSDAY AUGUST 17, 2023 21 THEEDGE CEO MORNING BRIEF H O N O U R I N G M A L AY S I A’ S B E S T P E R F O R M E R S I N ESG EXCELLENCE Knowledge Partner (Funds Category) Main Partner Auditor Official Broadcast Partner Automotive Partner In Collaboration With

THURSDAY AUGUST 17, 2023 22 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): Thailand’s Parliament will meet next week to select a new prime minister after a court ruling cleared a legal hurdle that had held up the selection process for nearly a month. A joint session of the elected House of Representatives and the military-appointed Senate will be held on Aug 22, Parliament Speaker Wan Muhamad Noor Matha told reporters on Wednesday (Aug 16). It will be the second vote to select a prime minister since the May 14 general election that saw the defeat of pro-royalist and military-backed parties. The announcement of the new schedule came after the constitutional court dismissed a petition challenging a Parliament decision last month to deny pro-democracy the Parliament move as their rights were not directly violated. Srettha Thavisin, a property tycoon, is set to seek parliamentary approval as the prime ministerial candidate of a new coalition headed by Pheu Thai, a party linked to former prime minister Thaksin Shinawatra. The party has tied up with some conservative outfits after it broke away from a Pita-led coalition. Investors are betting that the realignment of political parties with Pheu Thai at the helm will help install a new government more than three months after a general election. Read also: Thai court rejects election winners’ challenge to derailed PM bid Thailand to hold PM vote next week as new bloc eyes power NEW DELHI/CHENNAI (Aug 16): Burger King has scrapped tomatoes from its wraps and burgers in many Indian outlets after prices more than quadrupled, the latest symptom of surging food inflation that is hitting consumers hard across the world’s most populous nation. “Even tomatoes need a vacation ... we are unable to add tomatoes to our food,” read notices pasted at two Burger King India outlets. The chain has cited quality issues in explaining the shortfall. The burger chain, one of India’s biggest with nearly 400 outlets, joins many McDonald’s and Subway stores that have removed tomatoes from menus as India’s Burger King says tomatoes on ‘vacation’ as India battles food inflation BY MANOJ KUMAR & PRAVEEN PARAMASIVAM Reuters BY PATPICHA TANAKASEMPIPAT & SUTTINEE YUVEJWATTANA Bloomberg REUTERS Singapore arrests 10 in laundering case involving S$1 bil BY LOW DE WEI & ALFRED CANG Bloomberg Singapore have arrested 10 foreigners for suspected offences including money laundering and forgery, in a case involving about S$1 billion (RM3.41 billion) of properties, luxury cars, cash and other assets. (Aug 16): Authorities in Singapore arrested 10 foreigners for suspected offences including money laundering and forgery, in a case involving about S$1 billion (RM3.41 billion) of properties, luxury cars, cash and other assets. The Singapore Police Force said in a statement late on Wednesday (Aug 16) that it conducted simultaneous raids on Aug 15 that led to the arrests. The police issued prohibition of disposal orders against 94 properties and 50 vehicles with a total estimated value of more than S$815 million. Other assets confiscated include cash, more than 250 luxury bags and watches and over 270 pieces of jeweleries, according to the statement. leader Pita Limjaroenrat a second shot at the prime minister’s job. The nine-member court unanimously rejected the plea, saying the plaintiffs were not eligible to challenge BLOOMBERG food inflation this week hit its highest since January 2020. The US sandwich chain even cancelled the free cheese slices it offered for years. Rival Domino’s, meanwhile, has tried bringing down prices to appeal to struggling consumers with a US$0.60 (RM2.78) pizza — its cheapest in the world. The tomato supply crisis has coincided with a surge in prices by as much as 450% to record highs as monsoon rains disrupted crop and supply chains — although they have since eased. “Why are there no tomatoes in my burgers?” reads a question on the support page of Burger King India’s web site. The answer states its Indian franchisee follows “very high standards of quality” and tomatoes will be back soon. “We request your patience and understanding,” it says. Restaurant Brands Asia, which operates Burger King in India, did not respond to requests for comment. The pain is spreading with July retail inflation data released this week showing prices of vegetables rose 37% over a year. The cost of staples from onions and peas to garlic and ginger have all risen. “If the prices remain high, then eventually restaurants will have to take price increases,” said Amnish Aggarwal, head of research at India’s Prabhudas Lilladher. “There is no other alternative.” As well as placing pressure on the margins of foreign chains operating in India’s nearly US$5 billion market for fast-food restaurants, the price shocks pose a challenge for Prime Minister Narendra Modi’s government ahead of a national election next year. To manage the supply crisis, India has started tomato imports from Nepal, and has organised vans to distribute the staple at cheaper rates across the nation, with social media posts showing huge queues.

THURSDAY AUGUST 17, 2023 23 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): Norway’s US$1.4 trillion (RM6.48 trillion) sovereign wealth fund (SWF) returned 10%, or US$143 billion, in the first half (1H) as demand for artificial intelligence (AI) and semiconductor components saw technology stocks rebound. A return of 38.6% in tech company shares drove a 13.7% return in the equity portfolio, with chipmakers and the biggest internet and software firms benefitting from a surge in interest in AI solutions, the manager of Norway’s oil and gas (O&G) riches said in a report on Tuesday (Aug 15). Fixed-income investments returned 2.3%, while unlisted real estate holdings were down 4.6%. The fund’s report was set to be released on Wednesday (Aug 16). In a statement on Wednesday, chief executive officer Nicolai Tangen lauded the stock market as “very strong in the first half of the year, following a weak year in 2022,” adding that “especially technology stocks have seen significant growth, largely driven by the increased demand for new solutions in artificial intelligence.” Created in the 1990s to invest Norway’s O&G revenues abroad, the fund — also known as Norges Bank Investment Management (NBIM) — is the world’s biggest single owner of equities, largely tracking a benchmark index based on a framework handed down by parliament. The Oslo-based fund underperformed against its benchmark by 0.23 percentage point as it navigated the wobbly investment environment in the first part of the year, with misses in unlisted real estate and renewable energy infrastructure weighing on performance. Fast inflation and central bank campaigns to tame price increases coincided with banking industry tumult in the US and Europe, denting the fund’s investments in a US office sector suffering from soaring borrowing costs and falling values. The fund also took a hit on the collapse of SVB Financial Group’s Silicon Valley Bank (SVB), prompting Tangen to tell lawmakers in April that he was focused on minimising exposure to so-called rotten apples going forward. He’s also repeatedly warned that borrowing costs and soaring inflation are likely to weigh on returns in the years to come. Speaking in an interview in Arendal, Norway on Wednesday, Tangen warned that the outlook for inflation is still unclear. BY KARI LUNDGREN Bloomberg AI wave boosts returns for Norway’s US$1.4 trillion fund in 1H “We saw in the seventies that it actually did re-accelerate,” the executive said. “The link between climate and inflation is stronger than it’s been and you have some new elements there, which are worse.” Biggest stock positions holding in kroner Apple Inc 359 billion Microsoft Corp 333 billion Alphabet Inc 174 billion Amazon.com Inc 152 billion NVIDIA Corp 132 billion Nestle SA 100 billion Meta Platforms Inc 100 billion Taiwan Semiconductor Manufacturing Co 85 billion ASML Holding NV 85 billion Tesla Inc 80 billion With Apple Inc, Microsoft Corp and Alphabet Inc among its biggest stock holdings, the fund has reaped the rewards of advances in AI, and on Tuesday urged boards and companies to get serious about how they handle the threats and opportunities provided by the technology. Companies will need to develop AI expertise at the board level and should be able to explain how systems are designed and trained, the fund said in a view paper published on Tuesday. Global regulation will be key to protecting against the risks of AI and for “long-term value creation,” it said, but companies have to be proactive in managing threats, while “systems that can pose particularly severe risks to people, society or business outcomes should be subject to additional controls.” NBIM is also increasingly using its muscle to take a stronger stance against companies that fail to prioritise action on climate change, gender balance and executive pay. It voted on over 94,000 shareholder proposals in 1H and held 1,675 company meetings. About one in ten CEO pay packages were opposed by the fund and it voted against boards on 5% of proposals. Equities made up about 71% of the value of the fund, fixed income about 26% and unlisted real estate 2.3%, while unlisted renewable energy infrastructure made up 0.1%, it said. The government deposited 389 billion kroner (RM171.51 billion) into the fund in the six months through June. Its largest bond holdings were in US Treasuries, followed by Japanese and German government bonds. The expected shortfall for the fund, which gauges the expected loss of a portfolio in extreme market situations, dropped to 1.04 percentage points from 1.22 percentage points at the end of 2022. The credit quality of the bond portfolio was virtually unchanged compared to year-end. More than 80 “unwanted operational events” were registered in 1H, losing the fund about 1.1 billion kroner. Most of this loss was associated with a single mistake caused by the incorrect data being used, NBIM said. A return of 38.6% in tech company shares drove a 13.7% return in the equity portfolio, with chipmakers and the biggest internet and software firms benefitting from a surge in interest in AI solutions. Read also: Norway wealth fund CEO ‘staying put’ in commercial property

THURSDAY AUGUST 17, 2023 24 THEEDGE CEO MORNING BRIEF WORLD NEW YORK (Aug 16): Intel and Israeli contract chipmaker Tower Semiconductor’s proposed US$5.4 billion (RM25 billion) deal has been mutually terminated as they were unable to get timely regulatory approvals, the companies said on Wednesday (Aug 16). Shares of the Israeli company fell about 9% in the US as well as Tel Aviv. Intel, which had decided to buy Tower last year, will pay a termination fee of US$353 million to Tower, the company said in a statement. Tower and Intel did not provide details on the regulatory approvals. Reuters reported late on Tuesday that Intel would drop the deal once their contract expired without regulatory approval from China. “After careful consideration and thorough discussions and having received no indications regarding certain required regIntel, Tower terminate US$5.4 bil deal over regulatory hurdles HANOI/SINGAPORE (Aug 16): VinFast shares soared in thin trading in their Nasdaq debut on Tuesday (Aug 15), following the Vietnamese electric vehicle (EV) maker’s US$23 billion (RM106.72 billion) back-door listing, as the start-up said it is likely to raise money from global investors within 18 months. The stock opened at US$22, more than double the US$10 per share agreed with VinFast’s special purpose acquisition company (SPAC) partner Black Spade Acquisition that had valued VinFast at US$23 billion. It surged further during the session, ending at US$37.06 and valuing the EV maker, which had not posted a profit, at US$85 billion, more than Ford’s market capitalisation of US$48 billion and General Motors’ (GM) US$46 billion stock market value. About US$185 million worth of the company’s shares were exchanged, according to Refinitiv data. The merger with the SPAC gave VinFast a listing in a market where founder Pham Nhat Vuong hopes to take on industry leader Tesla with a US$4 billion factory under construction, and a new approach to sales to bring in dealers. Vietnam’s richest man, Vuong is the beneficial owner of 99% of VinFast’s 2.3 billion ordinary shares after the merger through his flagship company and affiliates. “We have a number of strategic investors and institutional investors lined up. We expect to formulate some kind of capital raising over the next 18 months for sure,” VinFast chief financial officer David Mansfield told Reuters. VinFast has shipped nearly 3,000 vehicles to North America since late last year, but initial sales have been slow. S&P Global Mobility said that only 137 Vinfast EVs had been registered in the US through June. Vietnamese EV maker’s market cap surges past Ford, GM in Nasdaq debut VinFast chief executive officer Le Thi Thu Thuy said the company is changing its distribution model, which had been based on Tesla’s direct-to-consumer approach, and expects to partner with dealers in overseas markets. “We are switching to a hybrid model, where we have our own showrooms, as well as talking to dealers to open dealer showrooms,” Thuy said in an interview with Reuters. VinFast was formed as a unit of Vietnam’s largest conglomerate Vingroup. Vuong, Vingroup and affiliates had invested US$9.3 billion in the EV maker, according to a June filing. Vuong pledged US$2.5 billion in April to bolster the EV maker, including US$1 billion from his personal fortune. VinFast’s first-quarter revenue dropped 49% from the previous year, and it posted a net loss of US$598 million. In 2022, the company posted a loss of US$2.1 billion. It has started construction on a US$4 billion plant in North Carolina. VinFast is entering the American and European markets at a time when EV pricing is under pressure, led by market leader Tesla and a range of Chinese companies. VinFast’s VF8 starts at US$46,000 in California, compared with US$47,740 for the Tesla Model Y before accounting for a US$7,500 federal tax credit on the Tesla. Thuy said VinFast is moving towards “cost reduction in the future”. She added that VinFast expects to bring its larger VF9 EV to the US market towards the end of the year, and is in the process of getting its cars certified by Europe’s safety regulator. BY PHUONG NGUYEN, FRANCESCO GUARASCIO & ANSHUMAN DAGA Reuters ulatory approval, both parties have agreed to terminate their merger agreement having passed the Aug 15, 2023 outside date,” Tower Semiconductor said in a statement. The development underscores how tensions between the United States and China over issues including trade, intellectual property and the future of Taiwan are spilling over into corporate dealmaking, especially when it comes to technology companies. Last year, DuPont De Nemours Inc scrapped its US$5.2 billion deal to buy electronics materials maker Rogers Corp after delays in securing approval from Chinese regulators. Intel chief executive Pat Gelsinger had said he was trying to get the Tower deal approved by Chinese regulators and had visited the country as recently as last month to meet with government officials. VinFast has shipped nearly 3,000 vehicles to North America since late last year, but initial sales have been slow. “The street has all its eyes on the leaders in this next frontier with many winners, along with Tesla, in this green EV tidal wave playing out for the coming years,” Wedbush Securities analyst Dan Ives said. Read also: Tycoon gets US$39 bil richer overnight on eyebrow-raising SPAC BLOOMBERG BY ANIRBAN SEN Reuters

THURSDAY AUGUST 17, 2023 25 THEEDGE CEO MORNING BRIEF WORLD JD.com’s 2Q sales beat estimates despite Chinese economy weakness HONG KONG (Aug 16): China’s Tencent Holdings posted a smaller-than-expected 11% rise in second-quarter revenue on Wednesday (Aug 16), as the country’s sputtering economic recovery weighed on the social media and gaming giant’s recovery from last year’s record downturn. The world’s largest video game company and operator of the WeChat messaging platform said revenue reached 149.20 billion yuan (RM94.9 billion) for the three months ended June 30. That compared with the 151.73 billion yuan average of 21 analyst estimates compiled by Refinitiv. Revenue growth was little changed from a 10.7% rise in the first quarter. Tencent posted a 1% revenue drop in the same period last year, when it reported its first ever sales decline, hit by Beijing’s bruising regulatory crackdown on its sprawling tech sector. Regulatory concern has eased this year for China’s tech giants, including Tencent, with Chinese authorities keen to boost private sector confidence. But the world’s second-largest economy failed to surge after it lifted Covid-19 restrictions late last year. Net profit rose 41% to 26.17 billion yuan as compared to the same period last year. But it fell under the 33.41 billion yuan average analyst estimate. Tencent’s core gaming business experienced weaker-than-expected growth in the second quarter. Domestic gaming revenue stayed mostly flat at 31.8 billion yuan, while international gaming revenue rose 12% to 12.7 billion yuan, excluding the impact of currency movements. Shawn Yang, an analyst at Blue Lotus Capital Advisors, said while Tencent’s old hits have delivered sub-par revenues due to lack of content, its new games are facing fierce competition from rival publishers such as NetEase Inc and miHoYo. Revenue from online ads stood out as one of the bright spots. It grew 34% to 25 billion yuan as its TikTok-like short video service Video Accounts experienced increased demand. Revenue from fintech and business services grew 15% to 48.6 billion yuan which the company said reflected expansion in both offline and online payment activities. China’s Tencent posts smaller than expected revenue growth; gaming falls short BY JOSH YE Reuters BY JANE ZHANG Bloomberg (Aug 16): JD.com Inc’s revenue accelerated in the second quarter (2Q) after its signature 6.18 festival scored with shoppers, helping the company defy worsening Chinese economic volatility. China’s No 2 online retailer reported a 7.6% rise in revenue to 287.9 billion yuan (RM184.13 billion) in the June quarter, versus the 279.1 billion yuan average of analysts’ estimates. Net income climbed 50% to 6.6 billion yuan. The report was the first under new chief executive officer Sandy Xu, who took the helm in June and now shoulders the task of reviving one of China’s largest and highest-profile public companies. JD’s results, which followed better-than-anticipated numbers from larger rival Alibaba Group Holding Ltd, suggest online commerce held up during the key summer shopping season despite a patchy Chinese economy. JD’s performance remains a far cry from the double-digit percentage expansions of previous years, before Beijing’s 2021 clampdown on internet spheres from online commerce to ride-hailing chilled a once-free-wheeling tech sector. Alibaba and its smaller rival are struggling to regain momentum after years of punishing Covid Zero restrictions gutted the world’s No 2 economy. JD itself is coming off its worst-ever quarterly revenue performance, for the January to March period. The company is now spending on incentives to ward off intensifying competition from upstarts such as PDD Holdings Inc and ByteDance Ltd. It launched a 10 billion yuan discount campaign to capture new Chinese users in March even as it pulled away from Southeast Asian e-commerce, closing its Indonesian and Thailand e-commerce sites to try and shave costs elsewhere. Samsung disposes more than half of its ASML stake in 2Q BY CAGAN KOC & SHINHYE KANG Bloomberg (Aug 16): Samsung Electronics Co cut its stake in ASML Holding NV by more than half in the second quarter (2Q), as the world’s largest memory maker beefs up its chipmaking business. The South Korean company sold around 3.55 million shares from April to June, according to its first-half report filed earlier this week. That lowered Samsung’s holding in the Dutch chip-gear maker to 0.7%, or 2.75 million shares, from 1.6% at the end of the first quarter. Spokespeople for Samsung and ASML declined to comment further. The sale raised about US$2.2 billion (RM10.19 billion), according to Korea Economic Daily. Samsung is expected to use the proceeds for investment in chip production lines, the paper reported, citing industry sources. Samsung’s chip foundry business is adding production capacity and more advanced manufacturing techniques to take on the market leader Taiwan Semiconductor Manufacturing Co, which is ASML’s biggest customer. In June, Samsung said it will introduce socalled 2-nanometer production for mobile phone parts by 2025 and expand applications. The company will also significantly increase output in Pyeongtaek, South Korea, and Taylor, Texas, to shore up the foundry division, which makes chips for customers on a contract basis. ASML is Europe’s most valuable tech firm and the world’s only maker of machines needed to produce the most advanced chips crucial to everything from cars and smartphones to computers and airplanes.

THURSDAY AUGUST 17, 2023 26 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): Bank of Ireland Group Plc said it had fixed a technical issue that allowed customers to take out funds above their normal limits. A glitch with the lender’s online app allowed people who had no money in their account to transfer up to €500 (RM2,537) into a Revolut account, according to the Irish Independent. That led to queues forming at cash machines on Tuesday (Aug 15) as people subsequently withdrew the funds from their Revolut accounts. “We are aware that the technical issue meant some customers were able to withdraw or transfer funds above their normal limits,” a bank spokesperson said in an emailed statement. “These transfers and withdrawals will be applied to customers’ accounts today. We urge any customer who may find themselves in financial difficulty due to overdrawing on their account to contact us.” A spokesperson for Revolut was not immediately available to comment. The company had 1.9 million customers in Ireland last year, or more than a third of the population. Bank of Ireland fixes glitch that gave customers ‘free’ cash Russian man sentenced to prison in Denmark as US$3.5 bil central bank scam fails (Aug 16): Dubai authorities fined the co-founders of failed crypto hedge fund Three Arrows Capital in their latest enforcement action against the duo’s new digital-asset exchange OPNX. The Virtual Assets Regulatory Authority (VARA) said it had issued the company a fine of 10 million dirhams (RM12.6 million) in May that remains unpaid. The regulator said penalties of 200,000 dirhams for Su Zhu and Kyle Davies along with OPNX co-founder Mark Lamb and chief executive officer (CEO) Leslie Lamb for failures to abide by the rules for marketing, advertising and promotions have been paid. In light of the company’s unpaid fine, “VARA shall determine consequential actions warranted against OPNX, which may include further fines, penalties, and/or taking any actions necessary to recover payment and definitively remedy the behaviour,” VARA said. Dubai has taken a stricter approach to crypto this year, launching a new regulatory regime requiring firms catering to retail investors to be licensed by VARA. That’s part of a broader effort by the United Arab Emirates (UAE) to get off the Financial Action Task Force’s “grey list” of jurisdictions that don’t do enough to uncover illicit funds. Zhu and Davies helped set up OPNX this year, marketing it as an exchange to trade (Aug 16): A court in Denmark sentenced a Russian citizen to three years in prison and deportation for attempted gross fraud and forgery in a US$3.5 billion (RM16.2 billion) scam attempt against the Danish central bank. The 53-year-old man falsified documents and pretended to represent an investment company in order to trick the central bank into paying him money, police said in a statement on Wednesday (Aug 16). He was arrested last year after sending multiple emails and even showing up at the Copenhagen-based bank in person. The public prosecutor called the case “unusual” and said the Danish central bank had quickly become suspicious of the Russian man and contacted police, according to the statement. crypto claims. The Three Arrows founders, who’ve been sparring with liquidators trying to recover money for creditors of their fallen fund, have made Dubai one of their primary bases since its implosion last summer. The action against OPNX represents VARA’s biggest published fine since the regulator was created last year. VARA has said it became aware in February that the firm was soliciting customers for its platform and collecting personal data. In early May, it publicly reprimanded Zhu, Davies, Mark Lamb, Leslie Lamb and another person for operating OPNX without the required license. Zhu, Davies, Mark Lamb and Leslie Lamb didn’t respond to requests for comment on the fines. Leslie Lamb told Bloomberg in May that the firm hadn’t done any marketing targeting Dubai or the wider UAE. She said OPNX was cooperating with VARA’s investigation and didn’t believe it violated any rules. At the time, Zhu had said that “while Kyle and I helped contribute the initial ideas for OPNX, Leslie is very much the CEO and we aren’t involved in day to day.” Both Zhu and Davies have kept promoting OPNX on X, the platform previously known as Twitter. In its statement announcing the fines on Wednesday (Aug 16), VARA referred to Zhu and Davies as among OPNX’s “founders”. Dubai fines three Arrows founders over OPNX crypto project BY BEN BARTENSTEIN Bloomberg BY AISHA S GANI Bloomberg BY SANNE WASS Bloomberg BLOOMBERG BLOOMBERG

THURSDAY AUGUST 17, 2023 27 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): Distressed Chinese developer Country Garden Holdings Co warned about “major uncertainties” in redemption of its bonds, as it said that trading of some of its local notes will remain suspended. The builder, whose cash crunch threatens even worse impact than defaulted peer China Evergrande Group given it has four times as many projects, made the comments in a filing with the Shanghai Stock Exchange. Country Garden, which was previously the nation’s biggest builder, is on the verge of default if it doesn’t make dollar bond interest payments missed earlier this month within a 30-day grace period. The crisis at the firm, helmed by one of China’s richest women, Yang Huiyan, has pushed its notes deeper into distress and weighed on China’s broader financial markets. It had suspended trading of 11 onshore notes issued by the company and subsidiaries earlier this week. The builder has been soliciting feedback on a proposal to extend payment of a 3.9 billion yuan (US$535 million or RM2.48 billion) note due Sept 2, people familiar with the matter said earlier this week. Read also: BlackRock, Allianz among holders of Country Garden bonds Country Garden warns about ‘major uncertainties’ in bond payments (Aug 16): China’s home prices dropped for a second month in July, a further sign of the deepening property downturn that’s weighing on the world’s second-largest economy. New home prices in 70 cities, excluding state-subsidised housing, fell 0.23% last month from June, when they slipped 0.06%, National Bureau of Statistics figures showed on Wednesday (Aug 16). Prices slid 0.47% in the secondary market, according to the data. The declines offer no relief to developers like Country Garden Holdings Co, which faces a potential default after missing bond payments this month as the housing market sputters. Risks are also spreading to the financial sector, where a trust company with massive exposure to real estate missed payments on some investment products. “The slowdown in the property market hasn’t been alleviated in August,” said Chen Wenjing, an associate research director at China Index Holdings. “The lacklustre market situation may continue in the short term, given it takes some time for local policy support to come out.” Last month’s price decline was widespread, with 49 cities out of the 70 tracked by the government seeing new home values drop from a month earlier, the most this year. In the existing home market, where prices are less subject to government intervention, they fell in all but seven cities. Shenzhen, a bellwether city in the south, saw prices slide 0.9% in the secondary market, trending closer to the level in June last year after Covid lockdowns halted economic activity. Chinese developers need a turnaround in sales and prices to alleviate a multi-year credit crisis that’s showing no sign of easing. A potential default by Country Garden, formerly the country’s biggest developer by sales, threatens even bigger fallout than defaulted peer China Evergrande Group. The value of residential sales nationwide tumbled 43% in July from June to 654.5 billion yuan (US$90 billion or RM416.27 billion), the weakest monthly sales in almost six years, according to Bloomberg calculations based on separate official data on Tuesday. China’s home prices drop at faster pace as downturn worsens Ghana unlikely to fulfill all cocoa contracts after weak harvest Bloomberg BY FOSTER WONG Bloomberg BY EKOW DONTOH Bloomberg BLOOMBERG (Aug 16): Ghana, the world’s second largest cocoa producer, is unlikely to be able to fulfill some of its crop contracts for a second season, adding to prospects of a global shortage. Farmers in the West African nation are expected to see the lowest output in 13 years in the season that ends next month, missing official forecasts by nearly a quarter, according to people familiar with the matter. The shortage is forcing the industry’s regulator to postpone 44,000 tonnes of cocoa shipments to future seasons as it isn’t able to deliver on current contracts, they said. The move would mark a further strain for global cocoa markets, which have seen prices soar this year as extreme weather has crimped output among top producers. Ivory Coast, the world’s largest exporter, is expected to see its upcoming main-crop harvest shrink by nearly a fifth from the year before. While the Ghana Cocoa Board initially anticipated a 2022-23 crop of 850,000 tonnes, the actual harvest is now expected to come in at around 650,000 tonnes, weighed down by a lack of fertilisers, spraying chemicals and sales to neighbouring Ivory Coast, where a stronger currency offers better returns for farmers, the people said. The regulator already rolled over about 40,000 tonnes of contracts last season, they added. A spokesperson for the Ghana Cocoa Board didn’t immediately respond to calls and text messages seeking comment. Output struggles among top producers are likely to put the world on track for a third consecutive supply deficit. Major chocolate manufacturers have warned they can’t rule out further price increases for consumers amid the increase in wholesale costs. For Ghana, the issue comes on top of complications in its efforts to secure financing to purchase beans for the 2023-24 crop, reflecting concerns about the West African nation’s debt crisis. The Ghana Cocoa Board is seeking other avenues to raise funds for the impending season, which starts on Oct 1.

THURSDAY AUGUST 17, 2023 28 THEEDGE CEO MORNING BRIEF WORLD (Aug 16): For the wave of executives turning into digital nomads since the pandemic, there’s nowhere more accommodating than Dubai. That’s according to research by real estate broker Savills Plc, which ranked 20 prime residential markets by their appeal to long-term remote workers. Dubai’s fast-growing fintech and financial services sectors are attracting a flurry of senior hybrid workers, many of which have been impacted by the 200,000-plus tech industry job cuts seen this year. “Many have been impacted by layoffs across global tech firms,” said Swapnil Pillai, a Middle East researcher at Savills. “They are exploring the city as a base to support these thriving sectors.” Hybrid era The shift to hybrid working since the pandemic prompted many executives to find a new base elsewhere in the world, often in warm coastal cities with easily accessible airports. Workers are still only going to the office an average of 1.75 days a week, according to a separate study of 22 countries by consultancy AWA, which found 37% of employers are planning to reduce their office space as a result. Meanwhile, as rental prices rise in digital nomad hotspots, the affordability of prime rental properties has become a crucial factor when deciding where to move next. Lisbon, which topped last year’s rankings, has dropped to number five as rents soared in the city. Malaga, a new entry into the rankings that saw Google move in this year, came in second only to Dubai. Miami calling Hot on Malaga’s heels is Miami, which sits third in the index. A mixture of low tax, easing rental prices, and popular beaches makes the Florida city a destination for buyers relocating from financial centers such as New York and Chicago. Still, insatiable demand means those moving to Miami with their families face fierce competition for high-quality education for their children. “This affluent demographic has driven demand for luxury property to its highest levels and made the search for private schools a very challenging one,” said Cyril Bijaoui, a Corcoran Group real estate agent based in Miami Beach. Dubai leapfrogs Lisbon as best destination for globetrotting executives (Aug 16): Sea Ltd’s historic 29% tumble erased close to US$10 billion (RM46.4 billion) from its market value, wiping out a quarter of co-founder Forrest Li’s fortune overnight while darkening the shopping and gaming leader’s prospects. Southeast Asia’s largest internet firm recorded its biggest single-day plunge after reporting revenue that missed analysts’ estimates, a rude check to a company that overhauled its business to focus on profitability just months ago. In a surprise shift, Li told analysts Tuesday (Aug 15) Sea intends to boost investment in the hyper-competitive arena, potentially generating losses going forward. Investors didn’t take that well. The resultant selloff erased US$1 billion from Li’s net worth, valued mainly based on his stake and options in the firm, according to the Bloomberg Billionaires Index. Li, once Singapore’s richest person with a US$20 billion hoard, is now worth US$2.9 billion. Co-founders Gang Ye and David Chen lost a combined US$700 million. Ye’s wealth currently stands at about US$1.9 billion and Chen lost his billionaire status. The question now is if Li’s maneuver will help Sea tackle aggressive competition from Alibaba Group Holding Ltd’s Lazada as well as new entrants such as ByteDance Ltd’s TikTok, whose livestreamed shopping bonanzas are winning over users in key markets such as Indonesia. The risk is that Sea, which reported losses for more than a decade after its founding in 2009, will sink back into the red after just three profitable quarters. “There is a lack of visibility on the investment’s effectiveness,” Citigroup analyst Alicia Yap said in a note, downgrading the stock to neutral from buy. “A brutal battle could be just starting.” The unprecedented retreat in Sea’s stock reversed much of the progress made since late 2022 and again put the Singapore-based company on a back foot. Once the world’s best-performing stock, the company’s capitalisation now stands at US$23 billion — down about US$180 billion from a November 2021 peak when Sea and other internet shares globally were surging. Li’s comments spooked investors long accustomed to watching price-based competition wipe out margins. Sea last year embarked on an aggressive cost-cutting Sea’s US$10 bil wipeout lays hard road back from tech crash BY OLIVIA POH Bloomberg BY DAMIAN SHEPHERD Bloomberg drive to reach profit, pivoting to a focus on the bottom-line as revenue growth decelerated from the triple-digit percentage rates of just two years ago. The company froze salaries and slashed hundreds of millions of dollars in sales and marketing expenses to achieve positive cash flows. Sea’s second-quarter sales rose just 5.2% to US$3.1 billion, trailing the US$3.2 billion analysts estimated on average. Its e-commerce arm Shopee increased sales 21% — the slowest pace on record. Alibaba grew its international commerce business 41% in the June quarter. To jumpstart growth, Li now intends to ramp up investments into Shopee. He is stepping up efforts to build out its livestreaming arm, an offensive move that could erode margins and trigger a price war with TikTok and Alibaba. Li is trying to reassure investors those efforts are necessary to defend its market share against rivals. Sea has been growing its livestreaming feature, rolling out several campaigns in Indonesia, he said Tuesday. “We have also broadened our assortment of products for our core categories, such as fashion, health and beauty to further enhance our competitive moat in the long term,” he said. Whether that’s enough remains to be seen. Beyond deep-pocketed competitors Alibaba and ByteDance, local rivals such as GoTo Group are also piling the pressure on Sea. GoTo, owner of Indonesian e-commerce contender Tokopedia, on Tuesday said its net revenue almost doubled in the latest quarter. Investor confidence “has been hammered, and the share price is likely to be range bound,” Yap wrote. The question now is if Li’s maneuver will help Sea tackle aggressive competition. BLOOMBERG

THURSDAY AUGUST 17, 2023 29 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) AIMFLEX BHD 192.20 0.045 0.205 36.67 301.1 UEM SUNRISE BHD 113.23 0.040 0.610 139.22 3085.7 KNM GROUP BHD 92.23 0.000 0.080 60.00 323.5 CLASSITA HOLDINGS BHD 85.22 0.000 0.075 -79.45 92.5 SAPURA ENERGY BHD 65.67 0.000 0.055 57.14 878.8 MALAYSIAN RESOURCES CORP BHD 53.67 0.020 0.430 45.76 1921.0 PESTECH INTERNATIONAL BHD 48.57 -0.025 0.290 -6.45 285.5 MY EG SERVICES BHD 45.94 0.020 0.815 -5.42 6035.4 ECONPILE HOLDINGS BHD 42.41 0.030 0.280 64.71 396.9 SP SETIA BHD GROUP 40.87 0.025 0.790 31.67 3223.4 CAPITAL A BHD 39.91 0.060 1.090 74.40 4588.5 SARAWAK CONSOLIDATED 39.38 0.005 0.445 206.90 284.9 YTL CORP BHD 39.36 0.020 1.310 125.86 14363.0 VELESTO ENERGY BHD 39.24 0.000 0.235 56.67 1930.7 UCREST BHD 38.20 0.015 0.210 68.00 155.8 CLOUDPOINT TECHNOLOGY BHD 32.87 0.010 0.605 0.00 321.6 TRIVE PROPERTY GROUP BHD 32.24 -0.005 0.060 -14.29 75.8 BAHVEST RESOURCES BHD 29.00 0.030 0.385 26.23 477.3 IRIS CORP BHD 28.82 0.005 0.075 -42.31 244.7 IMPIANA HOTELS BHD 28.21 -0.005 0.095 5.56 57.7 Data as compiled on Aug 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA HOLDINGS BHD 0.010 100.00 3.1 -33.33 64.50 GREEN OCEAN CORP BHD 0.015 50.00 40.1 -25.00 31.7 AT SYSTEMATIZATION BHD 0.015 50.00 3,730.6 0.00 101.8 MLABS SYSTEMS BHD 0.020 33.33 456.0 0 29 XOX BHD 0.020 33.33 7,734.7 33.33 101 AIMFLEX BHD 0.205 28.13 192,201.8 36.67 301.1 ALDRICH RESOURCES BHD 0.030 20.00 1.4 0.00 33.4 LANDMARKS BHD 0.155 19.23 1,635.1 -20.51 104.1 AVALAND BHD 0.220 15.79 18,673.6 83.33 320.5 TA WIN HOLDINGS BHD 0.040 14.29 2,305.0 -27.27 137.4 GREEN PACKET BHD 0.040 14.29 1,865.5 -27.27 79.8 LUSTER INDUSTRIES BHD 0.085 13.33 10,482.9 -10.53 256.9 ACME HOLDINGS BHD 0.265 12.77 7,030.1 43.24 95.1 JADI IMAGING HOLDINGS BHD 0.045 12.50 2,791.5 -47.06 63.0 ECONPILE HOLDINGS BHD 0.280 12.00 42,410.2 64.71 396.9 KEY ASIC BHD 0.095 11.76 6,170.8 46.15 132.4 NAIM HOLDINGS BHD 0.795 11.19 13,082.2 51.43 398.1 VIZIONE HOLDINGS BHD 0.050 11.11 482.0 -9.09 102.3 EVERSENDAI CORP BHD 0.150 11.11 2,667.5 -3.23 117.1 CSH ALLIANCE BHD 0.050 11.11 262.0 25 69.1 Data as compiled on Aug 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.005 -50.00 909.3 0.00 18.4 DGB ASIA BHD 0.005 -50.00 226 -66.67 9.4 MMAG HOLDINGS BHD 0.010 -33.33 1090 -60.00 24.2 IQZAN HOLDING BHD 0.020 -33.33 700.0 -42.86 4.4 G3 GLOBAL BHD 0.020 -20.00 4276 -33.33 75.5 MATRIX PARKING SOLUTION 0.110 -18.52 1000 -38.89 24.5 MALAYSIA MARINE AND HEAVY 0.475 -17.39 16,638.5 -20.17 760.0 TFP SOLUTIONS BHD 0.050 -16.67 188.3 -23.08 29.2 SWS CAPITAL BHD 0.345 -14.81 16,309.8 16.95 94.9 PDZ HOLDINGS BHD 0.030 -14.29 344.0 -25.00 17.4 REX INDUSTRY BHD 0.090 -14.29 1,222.6 -35.71 59.2 SC ESTATE BUILDER BHD 0.030 -14.29 410.3 -33.33 32.2 ASIA BRANDS BHD 0.485 -13.39 40.7 -11.82 112.8 KOMARKCORP BHD 0.035 -12.50 1,575.7 -36.36 40.4 EDUSPEC HOLDINGS BHD 0.035 -12.50 70.1 -65.00 37.3 INDUSTRONICS BHD 0.040 -11.11 20.0 -46.67 28.3 AVILLION BHD 0.050 -9.09 1,101.0 -37.50 56.7 CHINA OUHUA WINERY HOLDINGS 0.050 -9.09 1.0 -23.08 33.4 VOLCANO BHD 1.040 -7.96 2,461.8 114.43 171.6 PESTECH INTERNATIONAL BHD 0.290 -7.94 48,568.9 -6.45 285.5 Data as compiled on Aug 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) TRANSOCEAN HOLDINGS BHD 1.880 -0.120 6.8 -2.08 122.4 SAM ENGINEERING & EQUIPMENT 4.830 -0.120 30.7 -2.03 2,615.9 PPB GROUP BHD 16.040 -0.120 621.9 -8.03 22,818.5 FAR EAST HOLDINGS BHD 3.590 -0.110 13.5 -2.97 2,131.9 MALAYSIA MARINE AND HEAVY 0.475 -0.100 16,638.5 -20.17 760.0 AEON CREDIT SERVICE M BHD 11.720 -0.100 244.8 -6.84 2,992.2 MALAYSIAN PACIFIC INDUSTRIES 27.600 -0.100 103.9 -4.03 5,489.5 INARI AMERTRON BHD 3.050 -0.100 7,513.0 16.86 11,392.4 VOLCANO BHD 1.040 -0.090 2,461.8 114.43 171.6 HENGYUAN REFINING CO BHD 3.330 -0.080 445.3 -5.40 999.0 TROPICANA CORP BHD 1.200 -0.080 662.5 -6.25 2,719.6 PIE INDUSTRIAL BHD 2.820 -0.080 192.6 9.12 1,083.0 ASIA BRANDS BHD 0.485 -0.075 40.7 -11.82 112.8 PETRON MALAYSIA REFINING 4.520 -0.060 263.0 4.39 1,220.4 FRONTKEN CORP BHD 3.360 -0.060 3,631.5 9.09 5,283.3 SWS CAPITAL BHD 0.345 -0.060 16,309.8 16.95 94.9 KUALA LUMPUR KEPONG BHD 22.700 -0.060 785.5 1.52 24,480.5 UWC BHD 3.410 -0.060 599 -15.17 3756.7 RIVERVIEW RUBBER ESTATES BHD 3.150 -0.050 5.5 -8.58 204.3 SARAWAK OIL PALMS BHD 2.500 -0.050 350.2 -3.85 2,225.7 Data as compiled on Aug 16, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 132.300 0.400 18.2 -5.50 31,024.4 HEINEKEN MALAYSIA BHD 26.100 0.280 156.4 3.57 7884.8 IMASPRO CORP BHD 5.160 0.180 437.4 -11.79 412.8 GENTING BHD 4.570 0.120 4,011.2 2.01 17597.1 CARLSBERG BREWERY MALAYSIA 20.780 0.100 102.8 -9.18 6353.4 TENAGA NASIONAL BHD 9.990 0.100 8,836.8 3.74 57815.4 HUME CEMENT INDUSTRIES BHD 1.860 0.090 1,405.4 97.87 950.1 AIRASIA X BHD 2.390 0.08 6927.100 319.3 1068.5 KECK SENG MALAYSIA BHD 4.440 0.080 92.4 24.02 1595.3 MALAYAN CEMENT BHD 3.450 0.080 1,788.5 62.74 4,520.2 NAIM HOLDINGS BHD 0.795 0.080 13,082.2 51.43 398.1 RCE CAPITAL BHD 2.360 0.080 1,239.9 39.64 1,729.5 ALLIANCE BANK MALAYSIA BHD 3.560 0.070 2,035.7 -3 5511.3 AME ELITE CONSORTIUM BHD 1.450 0.070 1,172.9 16.94 926.7 IJM CORP BHD 1.700 0.070 13,767.3 7.69 5,960.5 KLUANG RUBBER CO MALAYA BHD 3.870 0.070 2.3 -2.27 240.6 K SENG SENG CORP BHD 1.240 0.070 4.0 -13.89 161.4 CAPITAL A BHD 1.090 0.060 39,908.5 74.4 4588.5 CENTRAL GLOBAL BHD 2.050 0.060 2,648.1 126.52 323.4 DUTCH LADY MILK INDUSTRIES BHD 21.480 0.060 50.0 -28.97 1374.7 Data as compiled on Aug 16, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 34,968.37 21.98 0.06 S&P 500 * 4,437.86 -51.86 -1.16 NASDAQ 100 * 15,000.41 -37.24 -0.25 FTSE 100 * 7,389.64 -44.53 -0.60 AUSTRALIA 7,195.17 -109.79 -1.50 CHINA 3,150.13 -26.05 -0.82 HONG KONG 18,329.30 -251.81 -1.36 INDIA 65,539.42 137.50 0.21 INDONESIA 6,900.54 -14.56 -0.21 JAPAN 31,766.82 -472.07 -1.46 KOREA 2,525.64 -45.23 -1.76 PHILIPPINES 6,410.09 74.18 1.17 SINGAPORE 3,213.58 -19.16 -0.59 TAIWAN 16,446.78 -8.02 -0.05 THAILAND 1,519.56 -1.17 -0.08 VIETNAM 1,243.26 9.21 0.75 Data as compiled on Aug 16, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,847.001.00 OIL US$ 85.130.24 RM/USD 4.6293 RM/SGD 3.4111 RM/AUD 2.9921 RM/GBP 5.9067 RM/EUR 5.0582