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CHIPMAKERS IN ‘UNPRECEDENTED’
SLUMP RULE OUT QUICK TURNAROUND p19

THURSDAY, OCTOBER 27, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 466/2022

CEOMorningBrief
HOME: Kerjaya Prospek consortium bags RM1.45 bil factory job from Texas Instruments p10
DAP to contest four parliamentary seats in Pahang, encroaching into Umno heartland Lipis p16

WORLD: IMF chief wants central banks to keep raising rates to hit ‘neutral’ level p22
China hints at reduced role for party elders in Xi’s reshuffle p24

AirAsia X mulls alternative
fundraising plans

Report on Page 2.

BLOOMBERG

Alphabet, Microsoft
spark US$380 bil
megacap rout

Report on Page 3.

THURSDAY OCTOBER 27, 2022 2 THEEDGE CEO MORNING BRIEF

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Capital A’s 3Q
passenger demand

reaches 54% of
pre-pandemic levels

AirAsia X mulls In February,AAX had announced that it BY IZZUL IKRAM
alternative has fixed the issue price for its one-for-one theedgemarkets.com
rights issue at 28 sen per share, which would
fundraising plans raise up to RM116 million, with a similar- KUALA LUMPUR (Oct 26):Passen-
ly priced special issue to raise RM50 mil- gers carried by Capital A Bhd’s oper-
BY KANG SIEW LI lion from the proposed share subscription ating joint ventures across Indonesia,
theedgemarkets.com by a special purpose vehicle (SPV) called Malaysia, the Philippines and Thai-
Garynma Investments Pte Ltd.The airline land rose 36% to 9.9 million in the
KUALA LUMPUR (Oct 26): AirAsia X had planned to use the funds for working third quarter of this year (3Q2022)
Bhd (AAX), the medium haul, low-cost capital. In addition, the SPV would also be from the previous quarter, which was
affiliate of Capital A Bhd, said it is in the given an option to subscribe to an additional 54% of pre-pandemic levels in 2019.
midst of formulating a comprehensive pro- 15% of the enlarged total number of AAX
posed plan to regularise its Practice Note shares after the fundraising exercises. On a year-on-year (y-o-y) basis, to-
17 (PN17) condition. tal passenger traffic growth was higher
But in announcing its 4QFY22 results on at 2,189%. In 3Q2022, Capital A, for-
This follows the lapse of an extension Aug 19,AAX said it is still in the midst of se- merly known as AirAsia Group Bhd,
of time granted by Bursa Securities on curing the underwriter(s) for the rights issue operated a total of 103 aircraft.Thus,
Wednesday (Oct 26) for AAX to complete and the SPV has not signed the share sub- capacity in 3Q2022, measured by
the implementation of its corporate exer- scription agreement of RM50 million to date. available seat-kilometres, was 11,417
cises announced in May last year, which million — 44% of pre-pandemic levels.
entail raising up to RM116 million via a The rights issue price of 28 sen represents
one-for-one rights offering and a special a discount of 32.7% to the theoretical ex-all In a statement onWednesday (Oct
issue to raise RM50 million. price (TEAP) of the shares of 41.58 sen based 26), Capital A said AirAsia Malay-
on the five-day volume weighted average mar- sia posted a passenger load factor
“The extension of time granted by Bur- ket price of the shares of 55.15 sen on Feb 18 of 86% in 3Q2022, up 2 percent-
sa Securities to complete the implementa- (at the point of announcement). Since then, age points (ppts) quarter-on-quarter
tion of the remaining corporate exercises however, the price of the shares has dropped (q-o-q) and 25 ppts y-o-y.
has lapsed today (Oct 26). Accordingly, to a closing price of 40 sen onWednesday (Oct
the remaining corporate exercises will not 26), which would imply a narrower discount “Passengers carried and overall
be implemented,” it said in a bourse filing. of 17.6% to theTEAP of 34 sen. capacity increased significantly by
3,009% y-o-y and 2,098% y-o-y to
Under its latest proposed regularisa- AAX had triggered the criteria for PN17 4.8 million and 5.6 million respective-
tion plan, AAX said it had on Oct 12, via classification last October, after its exter- ly, with 35 operating aircraft added to
AmInvestment Bank Bhd, submitted an nal auditors, Messrs Ernst &Young PLT, support the strong travel rebound for
application to Bursa Securities for an ex- had expressed a disclaimer of opinion in both domestic and international flights.
tension of time of six months up to April the airline’s audited financial statements In 3Q2022, AirAsia Malaysia flew to
28, 2023, for the airline to submit the plan for the 18-month financial period ended 57 destinations, of which 41 were in-
to the Securities Commission Malaysia June 30, 2021. It has up to 12 months to ternational destinations,” it said.
(SC) or Bursa Securities. regularise its condition from Oct 29, 2021.
As for its digital businesses, airasia
AAX shares are down 38.46% year to Super App achieved 9.5 million aver-
date. Its market capitalisation now stands age monthly active users in 3Q2022,
at RM163.9 million. up 161% y-o-y.

Read the full story

THURSDAY OCTOBER 27, 2022 3 THEEDGE CEO MORNING BRIEF

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LONDON/CHICAGO (Oct 26):Technol- Alphabet, have missed on revenue in three of the past
ogy powerhouse Alphabet Inc thrilled inves- Microsoft spark four quarters, the data show. Meta pub-
tors during the bull market by consistently lishes earnings after the market closes on
reporting stronger-than-expected sales and US$380 bil Wednesday, with Amazon and Apple Inc
earnings.Those days are over. megacap rout to follow on Thursday.

Disappointing quarterly updates from BY SUBRAT PATNAIK & RYAN VLASTELICA, Signs of weakness were widespread in
the Google parent, as well as Microsoft SOHEE KIM, ISHIKA MOOKERJEE Tuesday’s results.
Corp and semiconductor giant Texas In- & JAMES CONE
struments Inc, triggered a selloff threaten- Bloomberg Microsoft posted its weakest quarterly
ing to wipe more than US$380 billion in sales growth in five years, throttled by the
market value off some of the biggest US expected to grip markets. Pressure remains surging dollar, slumping PC demand and
companies. The news is foiling bets that on riskier asset classes such as tech.” faltering advertising revenue.
this year’s US$5.5 trillion selloff in tech
stocks had reached bottom. Alphabet now has reported three straight Microsoft’s forecast points to a serious
quarters of disappointing earnings per share, slowdown, said Anurag Rana, an analyst at
The quarterly updates underscored according to data compiled by Bloomberg, the Bloomberg Intelligence.“This guidance is worse
growing pressure on everything from cor- longest such streak in seven years. Prior to than we had anticipated and shows that en-
porate IT budgets to digital ad spending this year, the company had beaten estimates terprise IT spending is decelerating at a faster
and chips for industrial machinery. The nine quarters in a row, and had only missed pace amid rising economic woes,” Rana said.
Nasdaq 100 Index slipped 2% as the results once since the end of 2017.
refocused investor attention on the dam- At Alphabet’s most important financial
age to earnings and the economy from the Analysts and investors have been too engine, the search and related businesses,
Federal Reserve’s rapid interest rate hikes. optimistic this year about other tech giants sales rose less than analysts estimated as
reporting this week: Facebook parent Meta spiraling inflation crimped growth in dig-
“The global economy is at a tipping Platforms Inc and Amazon.com Inc each ital advertising.
point,” said Jessica Amir, strategist at Saxo
Capital Markets. “The stronger dollar will Microsoft sank as much as 8.1%, while
continue to hurt businesses’ forward earn- Alphabet declined 8.9%.The selloff extended
ings, at a time when consumer demand is to other consumer and tech giants, with Am-
likely to fall with the reverse wealth effect azon dropping 4.3%.Those that derive sales
from online advertising followed Alphabet
lower, with Meta and Pinterest Inc dropping
4.1% and 3.4% respectively.The Nasdaq 100
has plunged 30% this year, on course for its
worst annual performance since 2008.

The demand outlook was particularly
dire in the semiconductor industry, which
had been one of the hottest sectors during
the pandemic. Texas Instruments, whose
chips go into everything from home ap-
pliances to missiles, saw shares tumble af-
ter its weak forecast signaled that the chip
slump is spreading beyond computing and
phones into other businesses.The stock lost
as much as 6.7%, while Analog Devices
Inc, ON Semiconductor Corp, and Mar-
vell Technology Inc also dipped.

(Oct 26): Goldman Sachs Group Inc strat- Goldman Goldman’s caution comes at time when
egists said conditions for a trough in US Sachs says US markets are making yet another attempt
equities are not visible yet, as the asset class equity bottom to find a floor. The S&P 500 Index has
doesn’t fully reflect the latest rise in real conditions ‘not risen 8% since Oct 12, when it closed at
yields and odds of a recession. the lowest since November 2020.Traders
there yet’ are turning somewhat bullish on Treasur-
“US equity valuations do not yet offer a ies as they hedge for lower yields, build up
historically large premium to the real returns BY ABHISHEK VISHNOI long positions in portfolios, and pare bets
on offer from bonds and cash,” strategists Bloomberg on aggressive US Federal Reserve (Fed)
including KamakshyaTrivedi wrote in a note rate hikes.
onTuesday (Oct 25).There can be a “signif- recession is getting priced in.
icant downside if a proper recession occurs In case of a severe economic downturn, A Bloomberg survey of mainlyWall Street
or geopolitical risks in Ukraine or elsewhere economists put the probability of a reces-
intensify”, the note said. the Goldman team said it expects the S&P sion in the coming year at 60%, up from
500 Index to drop to 2,888, implying 25% 50% a month earlier. Bloomberg economists
None of the US assets tracked by Gold- fall from Tuesday’s close. including Eliza Winger are more bearish,
man are fully pricing in a recession, with setting the chance of a recession at 100%
equities factoring in the lowest odds of a “se- in the next 12 months.
vere hawkish scenario”, the strategists wrote. Read the full story
Their views differ from those of peers at Cit-
igroup Inc and JPMorgan Chase & Co, who
said the stumble in markets implies that a

THURSDAY OCTOBER 27, 2022 4 THEEDGE CEO MORNING BRIEF

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Nestlé 3Q Syed Mashafuddin to helm Affin Islamic.
earnings down to helm Affin Syed Mashafuddin has more than 25
24%, declares Islamic Bank,
70 sen dividend confirms years’ experience in the financial sector.
He started his career in the corpo-
BY IZZUL IKRAM The Edge report
theedgemarkets.com rate finance department of Commerce
BY SYAFIQAH SALIM International Merchant Bankers Bhd
KUALA LUMPUR (Oct 26): Higher com- theedgemarkets.com back in 1997.
modity prices, unfavourable exchange rates
and the one-off prosperity tax hewed into KUALA LUMPUR (Oct 26): Af- In 2002, he went on to serve its in-
Nestlé (Malaysia) Bhd’s net profit for the third fin Bank Bhd has announced the vestment banking department where he
quarter ended Sept 30, 2022 (3QFY2022), appointment of Datuk Syed was involved in numerous fund-raising
slashing it down 23.9% to RM112.65 million Mashafuddin Syed Badaru- exercises, restructurings, mergers and
from RM148.02 million a year ago. din as the new chief execu- acquisitions.
tive officer of Affin Islamic
The food and beverage (F&B) manufac- Bank, effective Nov 8. “Datuk Paduka Syed brings with
turer’s earnings per share slipped to 48.04 him a wealth of experience especially
sen from 63.12 sen last year, according This confirms The Edge in the areas of corporate banking and
to a bourse filing with Bursa Malaysia on Weekly’s report for the Islamic finance and this will put him in
Wednesday (Oct 26). week of Oct 3-9, citing in-
dustry sources, that Syed great position to drive Affin Islamic’s
Nevertheless, the group declared an inter- Mashafuddin, who is said operations and business moving
im dividend of 70 sen per share, with Nov to have recently resigned as forward,” Affin Bank president
17 as the ex-date, and payment on Dec 15. CEO of Principal Islamic As- and group CEO Datuk Wan
set Management Sdn Bhd, Razly Abdullah commented
The weaker earnings came despite will join the group on Wednesday.
Nestlé posting a 17.01% rise in quarterly “I have no doubt he will
revenue to RM1.68 billion from RM1.44 CIMB Niaga’s bring a fresh perspective to
billion, on the back of higher domestic and 9MFY22 PBT lead Affin Islamic as we em-
export sales, as well as continued recovery rises 22.5% partly bark on our A25 strategic
of its out-of-home (OOH) channels. thanks to better plan and continue with our
mission to provide unrivalled
“Domestic sales increased 13.5% and cost control customer experience and digital
export sales 30.2%, as economic activities leadership,”Wan Razly said
continued to stabilise locally and globally. BY SYAFIQAH SALIM in a statement.
theedgemarkets.com
“OOH channels continued to recov- “These results allowed us to create more
er compared to the same period last year KUALA LUMPUR (Oct 26): CIMB Group value to our shareholders.We maintain a pos-
(3QFY2021), which saw the OOH busi- Holdings Bhd’s 92.5%-owned PT CIMB Niaga itive outlook for the rest of 2022 with strong
ness impacted by movement restrictions in Tbk’s announced that its unaudited consolidated growth in our key focused segments, auto
certain areas of Malaysia,” the group said. profit before tax (PBT) for the nine months end- loans, mortgages, SME (small and medium
ed Sept 30, 2022 (9MFY22) rose 22.5% year- enterprise) and corporate.
Meanwhile, for the nine-month period on-year (y-o-y) to 5.02 trillion rupiah (RM1.52
ended Sept 30, 2022, Nestlé’s cumulative net billion) from 4.1 trillion rupiah. “The strength of our franchise is further ev-
profit grew by 6.51% to RM487.48 million ident by our strong capital & liquidity position.
from RM457.71 million, as higher sales and This translated into higher earnings per Our business strategy execution is progressing
lower Covid-19 expenses helped to partially share of 154.13 rupiah from 126.38 rupiah, well, and we are on track in delivering our fi-
mitigate the impact of higher commodity pric- according to CIMB Group’s filing with Bursa nancial targets in 2022,” said Lani.
es, unfavourable exchange rates and the one- Malaysia on Wednesday (Oct 26).
off prosperity tax known as Cukai Makmur. CIMB Niaga’s capital adequacy ratio
The solid results in 9MFY22 were due to closed at 21% and loan-to-deposit ratio closed
Cumulative revenue for the period improved revenues coming from strong business at 86.9% as of Sept 30.
climbed 17.55% to RM5.02 billion from growth, excellent cost control and better under-
RM4.27 billion, carried by a 13.7% increase lying asset quality trends,said CIMB Niaga pres- Its total consolidated assets stood at 307 tril-
in domestic sales and 33.8% in export sales, ident director Lani Darmawan in a statement. lion rupiah, solidifying the bank’s position as
on the back of solid growth in both the F&B Indonesia’s second largest privately owned bank.
and OOH segments.
Additionally, total deposits reached 221.9
Moving into the final quarter of the year, trillion rupiah with current account and sav-
Nestlé said it remains in a resilient position ings account ratio rising to 67.7%, which was
to deliver a year of solid growth, but noted attributed to deepening customer relation-
that the group continues to grapple with ship and customer experience through dig-
tough market conditions defined by higher ital touchpoints.
commodity cost and energy cost in a chal- Read the full story
lenging and volatile global environment. Read also: Downgrade pressure on plan-
tation sector has stabilised, says Bursa’s
Read the full story research arm

THURSDAY OCTOBER 27, 2022 5 THEEDGE CEO MORNING BRIEF

THURSDAY OCTOBER 27, 2022 6 THEEDGE CEO MORNING BRIEF

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FACEBOOK@ISTANANEGARA

Agong grants
audience to
Singapore PM
during state visit
to republic

BY MUHAMMAD SAUFEE ROSMAN Maimunah Iskandariah and Lee’s wife After the 30-minute audience,Al-Sultan
Bernama Ho Ching. Abdullah andTunku Azizah proceeded to
a luncheon hosted by Lee and his wife.
SINGAPORE (Oct 26):Yang di-Pertuan The Singapore ministers present at the
Agong Al-Sultan Abdullah Ri’ayatuddin audience were Foreign Minister DrVivian Their Majesties arrived here onTuesday
Al-Mustafa Billah Shah granted an audi- Balakrishnan, Education Minister Chan for the state visit, which will end on Friday.
ence to Singapore Prime Minister Lee Hsien Chun Sing, National Development Min-
Loong and four members of his Cabinet in ister Desmond Lee and Transport Min- The visit reflects the close bilateral ties
conjunction with His Majesty’s state visit to ister S Iswaran. between Malaysia and Singapore which
the republic onWednesday (Oct 26). were established 57 years ago.
Their Majesties were accompanied to
Also present at the audience held at the ceremony by Malaysian Foreign Min- Their Majesties will attend a state wel-
Shangri-La Hotel were Raja Permaisuri istry secretary general Datuk Seri Amran coming ceremony at the Istana onWednes-
Agong Tunku Hajah Azizah Aminah Mohamed Zin andTransport Ministry sec- day afternoon, before meeting Singapore
retary general Datuk Isham Ishak. President Halimah Yacob and attending
a state banquet.

KUALA LUMPUR (Oct 26): Malaysia Malaysia, Singapore clude the 100 MW electricity imports trial
and Singapore have completed the up- complete electricity from Peninsular Malaysia and LTMS-PIP.
grading of the electricity interconnector
between both countries to enable mutu- interconnector On the 100 MW electricity imports trial
al energy transfer in times of power out- upgrade from Peninsular Malaysia, the EMA said
age, Singapore’s Energy Market Authority it issued a request for proposal (RFP) on
(EMA) said in a statement onWednesday BY JUSTIN LIM March 5, 2021 to appoint an electricity
(Oct 26). theedgemarkets.com importer for the trial to import and sell
up to 100 MW of electricity in Singapore
“Since 1983, the interconnector has market.The EMA said on its website that via the existing interconnector between
enabled mutual energy transfer between on Oct 25, 2021, the EMA announced Singapore and Peninsular Malaysia over
Singapore and Malaysia during times of that two requests for proposal would be a period of two years.
power system disturbances.With the com- issued for up to a total of four gigawatts of
pletion of the upgrading works in August low-carbon electricity imports into Singa- “The RFP closed on June 30, 2021 and
this year (2022), the interconnector can pore by 2035, as part of Singapore’s efforts EMA has appointedYTL PowerSeraya Pte
now accommodate bidirectional electricity to enhance energy security by diversifying Ltd as the importer for the 100 MW elec-
flows of around 1,000 megawatts between energy supply sources. tricity imports trial from Peninsular Malay-
Malaysia and Singapore. sia (starting from 2022),” the EMA said.
“This is expected to make up around
“This is double its earlier capacity and 30% of Singapore’s electricity supply in Meanwhile, the LTMS-PIP marks a
has enhanced regional energy connectivity. 2035. historic milestone as the first multilateral
cross-border electricity trade involving four
“In addition to mutual support, the “The remaining supply will continue to Asean countries, and the first renewable
interconnector is currently used for come from various sources, ranging from energy import into Singapore, according
cross-border power trade under the Lao the current natural gas-fired power plants to the EMA.
PDR-Thailand-Malaysia-Singapore Pow- to solar and waste-to-energy sources,” the
er Integration Project (LTMS-PIP). The EMA said. “The LTMS-PIP successfully com-
LTMS-PIP imports up to 100 megawatts menced on June 23, 2022. Under this
(MW) of renewable hydropower from Lao To prepare for future electricity imports, project, up to 100 MW of renewable hy-
PDR to Singapore via Thailand and Ma- the EMA said it has been working with dropower will be traded from Lao PDR to
laysia using existing interconnections,” the various partners over the last two years Singapore viaThailand and Malaysia using
EMA said. on trials to import electricity. existing interconnections,” the EMA said.
Read also:
According to the EMA, which is a stat- The trials allow the EMA to assess and Ringgit weakens against Singapore dollar
utory board under Singapore’s Ministry of refine the technical and regulatory frame- to fresh low of 3.3472
Trade and Industry, the EMA announced works for importing electricity into Singa-
the completion of the Malaysia-Singapore pore, according to the EMA. Five producers given more time to refute
electricity interconnector upgrade at the chicken cartel allegations
ongoing Singapore International Energy According to the EMA, the trials in-
Week event.

Low-carbon electricity imports will be
a crucial component of Singapore’s power

THURSDAY OCTOBER 27, 2022 7 THEEDGE CEO MORNING BRIEF

THURSDAY OCTOBER 27, 2022 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Oct 26): Betamek Betamek makes tertainment and connectivity, the Inter-
Bhd made a strong debut on the ACE robust debut on net of Things, and accessories of vehicles.
Market of Bursa Malaysia on Wednes-
day (Oct 26), opening 23% higher over ACE Market, “We intend to focus on research and
its initial public offering (IPO) price of closing at 42% development (R&D) activities within
50 sen a share and adding further gains these areas of end-product applications,
throughout the day to end 42% or 21 sen premium which involve the inter-networking of de-
higher at 71 sen. At market close, Beta- vices embedded with electronics, sensors,
mek’s market capitalisation was RM319.5 BY SHAZNI ONG actuators and network connectivity.
million. theedgemarkets.com
“The concept of inter-networking, in-
Betamek’s share price even touched that it is optimistic about growth in de- cluding Bluetooth, Wi-Fi, 4G, 5G and
an intra-day high of RM1 as over 88.78 mand for its vehicle audiovisual products other future technologies, is driving the
million shares were traded within the first and vehicle accessories, as its major cus- automotive industry towards the design
30 minutes of trade.The counter was the tomer Perusahaan Otomobil Kedua Sdn of new-generation products,” he said.
most actively traded as 260.46 million Bhd (Perodua) continues to see rising
shares changed hands. demand for its vehicles. Looking ahead, he said Betamek is in a
unique position to leverage this growing
Under the listing exercise, Betamek Perodua recently announced that it market trend, besides expanding and di-
issued 67.5 million new shares, repre- sold 69,011 vehicles in the third quar- versifying its product offerings with com-
senting 15% of its enlarged share capi- ter of 2022 (3Q2022), as compared with petitive solutions, as hybrid, electric and
tal, at an issue price of 50 sen per share. 65,719 units in 2Q2022. For January autonomous driving vehicles gain global
to September, sales rose by 64.9% to market share.
The company, which saw its IPO over- 196,354 units, from 119,093 units sold
subscribed by 17.06 times by the Ma- last year. As at Aug 31, Mirzan said, Betamek
laysian public, aimed to raise RM33.8 was still in the early stages of undertaking
million from the IPO. Betamek managing director Mirzan joint R&D with its technology partners,
Mahathir said the company has been ex- but the company has commercialised
As part of the listing exercise, existing panding its product portfolio by including some of these technologies as features
shareholder Iskandar Holdings Sdn Bhd new automotive electronics solutions and in Perodua’s latest vehicle models.
also made an offer for sale of 45 million technologies required to complement the
existing shares to selected investors by features of its products over the years. “We will continue to identify new tech-
way of private placement. nologies that we consider to have sig-
“There are still many untapped oppor- nificant growth potential, and introduce
In a statement following its debut, tunities in product segments in relation them as features in our product offerings,
Betamek said it is well positioned to ben- to advance driver assistance systems, en- particularly those which may have syn-
efit from the upswing in the automotive ergistic potential with our existing key
industry, as the automotive supply chain product categories,” he added.
continues to improve. Read also: Betamek to ride E&E boom
while remaining competitive
The company, which provides one-
stop electronics manufacturing services
solutions to automotive makers, noted

KUALA LUMPUR (Oct 26): Leform Bhd Leform to raise crease in production volume and widen
is seeking to raise RM71.5 million via an RM71.5 mil our product range.
initial public offering (IPO) exercise on for strategic
the ACE Market of Bursa Malaysia, with Leform executive director and group
the bulk or some 42% of the proceeds to expansion through adviser Robert Phang Yew Cheong, who
be used to construct its new headquarters, ACE Market IPO was present at a press conference after the
warehouse storage facility and workers’ prospectus launch, said the group is ex-
accommodation. BY SHAZNI ONG pected to see its market share gradually
theedgemarkets.com improve over the next few years riding on
Apart from the expansion expenses, an- the back of its plans to expand its exist-
other RM21.91 million or 30.6% of the rials to the delivery of finished products. ing facility.
proceeds are earmarked for working cap- In a statement following its prospectus
ital purposes to purchase raw materials Following the prospectus launch, appli-
to support its growing business activities, launch on Wednesday (Oct 26), Leform cations for the public issue are open from
while RM14.39 million or 20.1% will be managing director Law KokThye said the Oct 26 and will close on Nov 11 at 5pm.
used for repayment of bank borrowings. IPO proceeds are anticipated to accelerate
The balance RM5.2 million or 7.3% is for the group’s growth trajectory. Leform’s IPO entails a public issue of
estimated listing expenses. 311 million new ordinary shares, repre-
“The proposed new facility will be a senting approximately 21% of the enlarged
Leform is scheduled to be listed on Nov one-stop centre that would allow for high- share capital, along with an offer for sale of
22.The company and its subsidiaries are er operational efficiency. In addition, our 74.1 million existing shares, representing
principally involved in the manufacturing storage capacity will increase by 93.2%, 5% of the enlarged share capital.
of and trading in steel pipes, guardrails allowing us to cater for the anticipated in- Read the full story
and flat steel products such as slitted steel Read also: SC revokes licence of deriva-
coils and sheets. tives dealer LT International Futures

Based in Serendah, Selangor, the group
has integrated operations in producing
steel pipes, from the production of mate-

THURSDAY OCTOBER 27, 2022 9 THEEDGE CEO MORNING BRIEF

T H U R S D A Y O C T O B E R 2 7 , 2 0 2 2 10 T H E E D G E C E O M O R N I N G B R I E F

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Kerjaya Prospek Global silicon iconductors, which are vital components
consortium bags wafer shipments of all electronic devices.
RM1.45 bil factory set new record
job fromTexas The highly engineered thin disks are
in 3Q2022, produced in diameters of up to 12 inch-
Instruments says SEMI es and serve as the substrate material on
which most semiconductors are fabricated.
BY SURIN MURUGIAH BY SURIN MURUGIAH
theedgemarkets.com theedgemarkets.com The SMG is a sub-committee of the
SEMI Electronic Materials Group (EMG)
KUALA LUMPUR (Oct 26): Kerjaya Pros- KUALA LUMPUR (Oct 26):Worldwide and is open to SEMI members involved
pek Group Bhd said a consortium compris- silicon wafer shipments reached a new re- in manufacturing polycrystalline silicon,
ing its unit and Samsung C&T Corp has cord of 3,741 million square inches (MSI) monocrystalline silicon or silicon wafers
bagged a contract from Texas Instruments in the third quarter of 2022, increasing (e.g. as cut, polished, epi).
Electronics Malaysia Sdn Bhd to build a 1.0% quarter-on-quarter and growing
factory in Melaka for RM1.45 billion. 2.5% from the 3,649 MSI recorded dur- The SMG facilitates collective efforts
ing the same quarter last year, according to on issues related to the silicon industry
In a filing with Bursa Malaysia onWednes- the US-based Semiconductor Equipment including the development of market in-
day (Oct 26), Kerjaya Prospek said the joint & Materials International’s (SEMI) SEMI formation and statistics about the silicon
venture (JV) between its unit Kerjaya Prospek Silicon Manufacturers Group (SMG). industry and the semiconductor market.
(M) Sdn Bhd (KPM) and Samsung C&T
(KL) Sdn Bhd had received a letter of award Silicon wafers are the fundamental In a statement on Tuesday (Oct 25),
to build and completeTIEM2 bump/probe/ building material for the majority of sem- SEMI SMG and chief commercial officer
AT factory construction atTaman Perindustri- at Okmetic Anna-Riikka Vuorikari-Antika-
an Batu Berendam,FreeTrade Zone,Melaka. inen said that while the semiconductor in-
dustry has faced macroeconomic headwinds,
Samsung C&T has a 70% stake in the the silicon industry continues to show quar-
JV, while KPM holds the remaining 30%. ter-on-quarter shipment increases.

Kerjaya Prospek said the project will com- “As the role of silicon wafers is fundamen-
mence on Nov 21, and be completed within tal in the broader cyclical industry,we remain
28 months. It said the contract is expected to confident in long-term growth,” she said.
provide an additional stream of revenue for
the group over the next two to three years.

Shares of Kerjaya Prospek have gained
five sen or 4% over the past month, to settle
at RM1.20 onWednesday, giving it a market
capitalisation of RM1.52 billion.

KUALA LUMPUR (Oct 26): The Ma- Malaysia’s pacted supply chains across sectors.
laysia Semiconductor Industry Association semiconductor The investment bank said the technol-
(MSIA) projected the semiconductor indus- industry projected to
try to grow by 8% to 10% in 2022, followed grow 8-10% in 2022 ogy sector is expected to experience mul-
by a weaker 2023, due to weaknesses in the ti-year earnings growth supported by fun-
personal computer and smartphone manu- Bernama damental exponential demand and further
facturing industries,Hong Leong Investment enticed by government incentives.
Bank Bhd (HLIB) said. The investment bank said in the past 12
months, a total of RM52 billion in sem- “We maintain our tactical position in
In a research note on Wednesday (Oct iconductor investment was announced, favour of front-end players, as many coun-
26), HLIB said the automotive industry, targeting to create 11,000 jobs. tries have rushed to develop their semi-
however, remained resilient with a strong conductor capabilities, especially in lead-
bill-to-book ratio. “In view of the impending implemen- ing-edge front-end fabrication (foundry),
tation of the global minimum tax of 15%, to be self-sufficient on the back of national
It said fabrication plants would continue the MSIA is working with the Government strategic and security interests,” it said.
to get equipped, despite recent scaled-down to improve non-monetary incentives, such
capital expenditure plans by major players, as automation, talent and supply chains, HLIB outlined several challenges for the
but might put manpower on hold until or- to attract FDI in this industry,” it said. semiconductor industry, including economic
ders are secured. headwinds such as inflation and global re-
HLIB said increasing demand for digi- cession risk, demand correction in consum-
“The MSIA is working with the Govern- talisation boosted worldwide sales, which er products, as well as supply disruptions.
ment to improve non-monetary incentives resulted in a global chip shortage that im-
to attract foreign direct investment (FDI) Malaysia will participate in implement-
in this industry. ing the global minimum corporate tax of
15% from 2023 on large multinational
“We maintain our‘overweight’stance,and enterprises and Malaysian conglomer-
are tactically in favour of front-end players,” ates whose annual global turnover exceeds
it added. RM3.4 billion.

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NEWS IN BRIEF

Jiankun to co-develop apartment Sealink secures vessels charter worth RM63 mil
project worth RM215 mil
KUALA LUMPUR (Oct 26): Real estate KUALA LUMPUR (Oct 26): Sealink International Bhd has secured long-term charters
developer Jiankun International Bhd has for four offshore support vessels from oil majors for up to two years worth up to RM63
entered into a joint development agreement million and the sale of three vessels overseas for RM7 million. It said the sale of the
(JDA) with NTL International Holdings (M) vessels is part of Sealink’s strategy to continually modernise and upgrade its fleet of
Sdn Bhd, a freehold land owner in Semenyih, vessels. “Sealink constantly sells older vessels and replaces them with newer vessels,
to develop a serviced apartment with a gross in line with the changing requirements of the oil and gas industry,” it said in a filing
development value of RM215.1 million — with Bursa Malaysia on Wednesday (Oct 26). It said the net proceeds after deducting
more than three times Jiankun’s current the estimated expenses and other ancillary expenses relating to the abovementioned
market value. Under the JDA, Jiankun contracts would be used for working capital purposes. “At the same time, the sale of older
will undertake the cost and expense for vessels will result in future savings in terms of laid-up costs, dry-docking and reactivation
the development and completion of the expenses. “Savings would then be utilised for better resources reallocation,” it said.
project. The project consists of one block of Meanwhile, it said the contract is expected to contribute positively to the earnings and
a 37-storey serviced apartment, including cash flow of the company for the financial year ending Dec 31, 2022. — Bernama
serviced apartment units, commercial units,
affordable homes, facilities, and a seven- KIP REIT 1QFY23 earnings improve CapitaLand Malaysia Trust’s NPI
storey car park. In a statement, Jiankun on low base effect doubles in 3Q
executive director and CEO Edwin Silvester
Das said the joint development is in line KUALA LUMPUR (Oct 26): KIP Real Estate KUALA LUMPUR (Oct 26): CapitaLand
with the group’s initiatives to collaborate Investment Trust’s (REIT) net property Malaysia Trust’s (CLMT) net property income
with landowners to expand its property income for the first quarter ended Sept 30, (NPI) for the third quarter ended Sept 30,
development business. — by Justin Lim 2022 (1QFY23) grew 4.8% to RM14.33 2022 (3QFY22) swelled two-fold to RM38.21
million, up from RM13.67 million a year million from RM18.57 million a year prior,
Read the full story ago, mainly due to low base effect as in line with higher revenues across all its
operations were affected by Covid-19 properties. In a statement on Wednesday (Oct
Caely proposes name change to lockdowns last year. Revenue was 13% 26), the real estate investment trust (REIT)
Classita higher at RM19.35 million for the quarter said distributable income for the quarter
KUALA LUMPUR (Oct 26): Caely Holdings under review, compared with RM17.14 amounted to RM22.2 million or a distribution
Bhd proposes to change its name to “Classita million for 1QFY22, the REIT said in a stock per unit (DPU) of 1.01 sen. Commenting
Holdings Bhd” to create a new corporate exchange filing on Wednesday (Oct 26). on the results, CapitaLand Malaysia REIT
identity for the company’s existing and future KIP proposed a first income distribution of Management Sdn Bhd (CMRM) chairman Lui
undertakings. Caely, which is embroiled in 1.45 sen per unit, with ex-date on Nov 9. Chong Chee said CLMT’s stronger earnings
a legal case for alleged misappropriation of Going forward, executive director Datuk in the quarter were in line with the overall
funds amounting to RM30.55 million, said Eric Ong Kook Liong said the REIT’s core recovery of the nation’s retail sector, boosted
the proposal is subject to approval of the strategy will be to continue to pursue by the lifting of the Covid-19 pandemic
company’s shareholders at the upcoming high quality accretive acquisitions to restrictions and reopening of international
annual general meeting (AGM), which will be support sustainable distribution payout borders. For the nine months ended Sept 30,
convened on a date to be announced later. to unitholders. “We remain cautiously 2022 (9MFY22), CLMT logged a cumulative
“The proposal, if approved by shareholders at optimistic of our prospects in line with the NPI of RM111.71 million, a 59.78% increase
the forthcoming AGM, will take effect from economic recovery as market uncertainties from the RM69.91 million the REIT achieved
the date of issuance of Notice of Registration continue to loom. — by Chester Tay in 9MFY21. — by Izzul Ikram
of new name under Section 28(4) of the
Companies Act 2016 by Companies Read the full story Read the full story
Commission of Malaysia. “The notice in
respect of this proposal will be issued to the K Seng Seng buys RM14.7 mil Ecomate swings back to the black
shareholders of the company in due course,” building in Klang in 2QFY23
Caely said in a bourse filing on Wednesday KUALA LUMPUR (Oct 26): Muar-based
(Oct 26). — by Syafiqah Salim KUALA LUMPUR (Oct 26): Stainless steel ready-to-assemble furniture specialist Ecomate
manufacturer K Seng Seng Corp Bhd’s unit Holdings Bhd returned to the black in the
Read the full story is buying a one-storey factory cum three- second financial quarter ended Aug 31, 2022
storey office building in Klang, Selangor (2QFY23), posting a net profit of RM1.58 million
for RM14.7 million to expand its marine compared with a net loss of RM1.81 million a
hardware business. In a bourse filing, year ago, on higher revenue contributions from
the group said its 75%-owned subsidiary its domestic market, Europe and Australasia. The
Koseng Sdn Bhd is buying the property, better quarterly performance lifted the group’s
which measures 5,037 square metres net profit for the cumulative six months ended
of land area, from ETA Steel Sdn Bhd, a Aug 31, 2022 (1HFY23) to RM3.61 million, an
wholly-owned subsidiary of ETA Industries over six-fold increase from RM590,0000 a year
Sdn Bhd. K Seng Seng said the acquisition, ago. — by Syafiqah Salim
which is expected to be completed by the
first quarter of next year, will be funded Read the full story
through bank borrowings and internally-
generated funds. — by Chester Tay

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Parkson’s HK-listed Science andTechnology City New District. Kenanga Research
indirect unit wins Mianyang Fulin’s winning bid for the starts coverage
tenancy bid for of OM Holdings,
20-year lease in space measuring 60,000 sq m was about target price at
Sichuan province 21.6 million yuan (RM14.01 million). RM2.54

by lam jian wyn “The board considers that the tenancy by surin murugiah
theedgemarkets.com of the property plays an important role in theedgemarkets.com
the development of the group’s business
KUALA LUMPUR (Oct 26): An in- in the Mianyang city, and is in line with KUALA LUMPUR (Oct 26): Kenanga
direct unit of Parkson Holdings Bhd’s the group’s development strategy in the Research has initiated coverage of OM
54.97%-owned Hong Kong-listed subsid- Sichuan province. Holdings Ltd (OMH) with an “outper-
iary Parkson Retail Group Ltd has won a form” rating at RM1.90 and target price
tender for a 20-year tenancy in Mianyang, “The property is tailor-made for the group, (TP) of RM2.54.
a city within the Sichuan province of China. located in the new district of the Mianyang city
established in 2020, and is being developed by OMH is the largest manganese and
In a bourse filing, Parkson said Mian- the local government for an important busi- silicon smelter in Southeast Asia.
yang Fulin Parkson Plaza Co Ltd received ness circle.The board believes that the ten-
a successful bidding notice on Tuesday ancy will have a positive impact on the future Its main ferroalloy smelting plant in Sa-
(Oct 25) confirming that it had won the bid development of the company,” said Parkson. malaju, powered by Bakun hydroelectric
in the tender for tenancy of part of LG1, plant, has the lowest cost structure in the re-
and levels one to four of buildings on the According to the group, it will enter into gion and is highly environmentally friendly.
east side of ChuanYe Da Dao, Mianyang a cooperation agreement with landlord Mi-
anyang New Investment Industrial Co Ltd In a note onWednesday (Oct 26), the
within 45 business days of receving the notice, research house said OMH’s fortunes are
and negotiate and finalise the terms of the tied to global steel demand which is pro-
tenancy via a supplemental agreement within jected byWorld Steel Association to grow
another 45 business days from the date of the by 2.2% in 2023.
cooperation agreement, before entering into
the tenancy agreement within five days of the “We expect OMH’s FY2022F/23F
landlord obtaining the construction project earnings to surpass that of FY2021 driv-
planning permit for the property. en by capacity expansion and elevated
average selling prices (ASPs),” it said.
KUALA LUMPUR (Oct 26): Clothes Padini vigilant
retailer Padini Holdings Bhd said supply as logistics issues Kenanga said it expects FY2022 net
chain and logistics issues continued to ad- adversely affect profit to jump 53% year-on-year (y-o-y)
versely affect market players post Covid-19 clothes retailers attributable to a better ASP mix and oper-
pandemic as the Russia-Ukraine war jolts ation efficiency, despite a 10% contraction
a recovering world economy marred by by sufi muhamad in revenue due to cessation of OMQ and
movement restrictions due to the pandemic theedgemarkets.com Bootu Creek Mine, but FY2023 net prof-
which began in early 2020. it is forecast to fall 8% y-o-y on the back
services. Coupled with the energy crisis, es- of a 13% decline in revenue as ASPs fall.
Padini chairman Chia SweeYuen said in pecially in Europe, it is a major concern that
the company’s latest annual report, which was weak, and possibly recessionary, economic “Nonetheless, higher production vol-
filed with Bursa Malaysia onWednesday (Oct conditions are triggered in many countries. ume of 16% will help to mitigate the
26),the group will remain vigilant to minimise fall in ASPs.
the adverse impact of a challenging global “Looking inward, the group’s (Padini) do-
economic outlook on the company’s business. mestic (Malaysian) operations continue to be “Meanwhile, the strong ASPs in the
the main driver of revenue and profits. Not- past two years have helped to strengthen
“Good understanding of consumer needs, withstanding that the government is antici- its balance sheet, with net gearing set to
ability to deliver value and speed-to-market pated to continue to implement the necessary improve to 0.30 times by FY2023 from
will continue to be critical success factors. measures to support the domestic economy, 2.09 times five years ago in FY2017,”
“These components have been ingrained given the adverse global environment, increase it said.
into all areas of the marketing,merchandising in interest rates, inflation and rising prices,
and supply chain of the group,” Chia said. which affect consumers’purchasing power and Read also:
lifestyle, the group expects the outlook for the Glove share price rise nudges healthcare
Guided by capable leadership, he said Malaysian economy for 2023 to be challenging. gauge to highest in two months
Padini has been able to mitigate some of
these effects of the supply chain and logistics “Padini, to a large extent, operates in InNature’s bullish momentum gaining
issues with the sustained efforts of dedicated a segment of the consumer market that traction, says RHB Retail Research
staff and long-term relationships built with is less susceptible to the impact of these
customers, suppliers and other stakeholders. developments,” he said. Formosa Prosonic resuming upwards
trajectory, says RHB Retail Research
He said continuing geopolitical tension Read the full story
among global powers have significant ad-
verse effects on global economic growth,
trade flows, supply chain disruptions, infla-
tion, interest rates and currency volatility.

“The central banks of the major G7 coun-
tries have clearly demonstrated their resolve
to stem inflation with significant interest rate
increases to curtail demand for goods and

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Chester Tay/The Edge Dr M-led GTA’s
registration
DAP’s
parliamentary application still
candidates for being processed
Pahang in the
upcoming GE15: — ROS
(from left) Chiong
Yoke Kong, Chow by Nur Afiradina Arshad
Yu Hui, Tengku Bernama
Zulpuri Shah Raja
Puji and Young KUALA LUMPUR (Oct 26):The ap-
Syefura Othman. plication by GerakanTanahAir (GTA)
for registration is still being processed,
DAP to contest We are not making decisions based on ob- said the Registrar of Societies (ROS).
four parliamentary servation; we have done scientific surveys.
From our survey, she is our most winnable “It has not been approved or reject-
seats in Pahang, candidate for Bentong,” he said. ed yet,” ROS director general Mohd
encroaching Nawardi Saad said when contacted
into Umno “I have discussed with him (Wong) for by Bernama onWednesday (Oct 26).
about three hours last Sunday, to convey
heartland Lipis our decision and offered him to contest in GTA pro tem chairman Tun Dr
Cameron Highlands, he requested 24 hours Mahathir Mohamad was reported as
by Chester Tay for him to consider, and he declined that saying on Tuesday that the coalition
theedgemarkets.com offer after deliberation,” he added. would be using the Pejuang party logo
in the 15th general election (GE15)
KUALA LUMPUR (Oct 26): Democratic As a result, DAP will be fielding in “because the Government did not ap-
Action Party (DAP) has unveiled its parlia- ChiongYoke Kong in Cameron Highlands, prove the registration of GTA”.
mentary candidates for Pahang in the upcom- while ChowYu Hui will be fielded in Raub.
ing 15th general election (GE15), fielding a GTA, which was established on
slew of incumbent state assemblymen (adun) Chiong, 39, is incumbentTanah Rata adun Aug 4, submitted its application to
while dropping incumbent Bentong Member while Chow, 39, is incumbentTras adun. the ROS on Aug 18.
of ParliamentWongTack as candidate.
“Cameron Highlands has been contest- It comprises Pejuang, Parti Perika-
DAP secretary general Anthony Loke also ed by DAP since a number of years ago. In tan India Muslim Nasional (Iman),
announced onWednesday (Oct 26) that the the last election we lost by a marginal vote, Parti Barisan Jemaah Islamiah Se-Ma-
party will contest in four seats in GE15,adding so we will continue to contest,” Loke said. laysia (Berjasa), and Parti Bumiputera
Lipis to the three seats — Bentong, Raub and Perkasa Malaysia (Putra).
Cameron Highlands — it contested in GE14. Loke said the seats in Pahang are margin-
al seats, and hence DAP’s headquarters will Mohd Nawardi said the draft con-
Lipis was contested by Parti Pribumi be providing additional support to candi- stitution of GTA needs to be amended
Bersatu Malaysia in GE14, when it was a dates there, by appointing DAP’s vice chair- to bring it in line with existing laws.
member party of Pakatan Harapan. man Teresa Kok as central executive com-
mittee (CEC) mentor to Rara in Bentong, “We will have no objection to ap-
Then Bersatu candidate Badarudin Abd while the secretary general himself will be proving it if the proposed constitu-
Rahaman lost to Umno candidate Abdul CEC mentor to the other three candidates. tion meets the set policies,” he said.
Rahman Mohamad by 6,569 votes.
Loke said the CEC mentor will provide According to Mohd Nawardi,GTA
DAP will field incumbent Raub MP advice and mentoring with support that in- representatives met his officers on
cum party deputy secretary general Teng- cludes financial aid to candidates. Wednesday to discuss the registration.
ku Zulpuri Shah Raja Puji in Lipis, said
Loke in a press conference on Wednesday. Loke highlighted that three of the four GTA reportedly plans to con-
candidates announced on Wednesday are test about 120 parliamentary seats
“Lipis is a heartland for Umno, and below 40 years old, in line with the party’s in the GE15.
Tengku Zulpuri will be contesting in a tough strategy to field fresh faces for parliamen-
seat, so we decided to field him in a state tary seats. Nomination for the GE15 falls
assembly seat as well, the only exception on Nov 5, a Saturday, followed by
for DAP in Pahang,” said Loke. “But they all have experience.They are nationwide polling on Nov 19.
fresh faces in Parliament, but they have
For Bentong, DAP will be fielding in- served in the state assembly before,” he said. Read also:
cumbent Ketari adunYoung Syefura Oth- Pardon for Najib not up to govt,
man, more popularly known as Rara, instead In GE14, DAP won both Bentong and Umno — Ismail Sabri
of Wong, who declined an offer to stand in Raub from arch-rival Malaysian Chinese
Cameron Highlands, according to Loke. Association’s (MCA) candidates, but lost Ex-sec-gen, Nik Aziz’s son among new
in Cameron Highlands. faces in PKR’s GE15 candidate list
Loke said fielding Rara, 33, is a “coura-
geous” step for DAP, signifying that the party Then MCA presidentTan Sri LiowTiong
is heading towards a more inclusive direction. Lai, who was Bentong MP, stepped down
following his defeat and the party’s lacklus-
“If Rara wins, she will be the first Malay tre performance in GE14.
female MP in Parliament from our party.
Liow is rumoured to make a comeback
to contest in Bentong in GE15.

While Liow has not confirmed whether
he will be contesting again, current MCA
president Datuk SeriWee Ka Siong last week
issued a statement to say that his predecessor
is the most qualified candidate for the seat,
situated about 70km from Kuala Lumpur.

T H U R S D A Y O C T O B E R 2 7 , 2 0 2 2 17 T H E E D G E C E O M O R N I N G B R I E F

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This exhibition of nine series of works shows, in part,
the continuation of Siang Jin’s journey in art after a
30-year break. It also embodies a series of changes
that have come along since his restart. By explaining
and illustrating his ideas, he hopes to bring greater
appreciation of his art which he considers an integral
part of his life – in his art, one also sees his various
earlier experiences as a media production person,
a photography hobbyist and a writer.

21 - 30 OcDAtToEber 2022
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RM3.1bil gained the Federal Lands Commissioner, and out Court of Appeal
since 1957 following of that, nine lots have remained vacant. affirms Lokman’s

Semantan land “Twenty-nine of these lots already have conviction,
acquisition, buildings on them,” he said. one-month jail
says valuer
Foo, 59, the first witness in the claim, also sentence for
by Hafiz Yatim contrasted his valuation method with that contempt
theedgemarkets.com done by theValuation and Property Manage-
ment Department (JPPH), which had given by Hafiz Yatim
KUALA LUMPUR (Oct 26): In one of a lower estimate of mesne profits. theedgemarkets.com
the long-standing land disputes since Inde-
pendence, following an acquisition under the “JPPH did not make any adjustment with PUTRAJAYA (Oct 26): The Court of
National Land Code which the courts have regard to its calculation, and it is not the best Appeal onWednesday (Oct 26) affirmed
declared as trespassing, the prime land of Se- comparable mode to rely on,”the witness said, the conviction and one-month jail sen-
mantan Estate (1952) Sdn Bhd in Mukim adding that the method of calculation was tence for former
Batu here is said to have gained total profit based on the MalaysianValuation Standards. Umno supreme
of RM3.1 billion between 1957 and 2021, council member
according to estimates by a valuer. The calculation of the defendant in this Datuk Lokman
case (the Federal Government) was based Noor Adam (pic-
The 263.72-acre (106.72-hectare) land on the entire land of 263.27 acres being tured) for contempt
now encompassing the National Archives, vacant for the entire valuation period of of court for threat-
the government offices of the Inland Reve- 1957 to 2021. ening 1Malaysia
nue Board, theTun Razak hockey stadium, Development Bhd
the Segambut roundabout, the Malaysian Foo was testifying in Semantan Estate’s (1MDB) witness
Anti-Corruption Commission acade- assessment of mesne profits, following a Datuk Amhari Efendi Nazaruddin.
my (MACA), the Shariah Court and the High Court judgement in December 2009,
Wilayah mosque was acquired more than which was in the company’s favour. The three-member bench led by
60 years ago in 1956. judge Datuk Kamaludin Md Said, how-
The attorney general, who represented ever, allowed a stay of the conviction
OnTuesday (Oct 25), Semantan Estate the Government, appealed against the High and sentence, after Lokman’s counsel
liquidators began their claim against the Court’s decision, but lost in the Court of Tan Sri Muhammad Shafee Abdullah
Federal Government for wrongful posses- Appeal in May 2012. Finally, the Federal made an undertaking that an appeal will
sion of the land, and claiming for mesne Court upheld the High Court’s decision in be filed within 14 days.
profits. November 2012.
Judge Datuk Che Mohd Ruzima
The land was acquired at a cost of The apex court ruled that the Govern- Ghazali, who wrote the judgement,
RM1.32 million. ment had trespassed on the land when it found that there was no error made by
acquired it in 1956 for a price of RM1.32 the High Court judge in convicting Lok-
Mesne profits according to the claimants million under the then Land Acquisition man of contempt of court.
are “the rents and profits which a trespasser Enactment for the purpose of developing
has, or might have, received or made during a diplomatic (duta) enclave. “The court unanimously found that
his occupation of the premises, and which there was no error done by the High
therefore he must pay to the true owner Subsequently, on Nov 22, 2018, the Fed- Court judge in arriving at the decision,”
as compensation for the tort which he has eral Court, led by then Court of Appeal pres- Che Mohd Ruzima said.
committed”. identTan Sri Ahmad Maarop, dismissed the
Malaysian Government’s application to re- On July 15, High Court judge Datuk
CBRE-WTW chairman Foo Gee Jen view the November 2012 decision. Collin Lawrence Sequerah found Lok-
began his testimony, and said that based man guilty of contempt, and sentenced
on his study, total profit gained from 1957 Semantan Estate claimed it retained its him to one month’s jail for disrupting
to 2021 was RM3.1 billion. beneficial interest in the 263.27 acres of land the administration of justice.
in Mukim Batu, which it alleged the Govern-
This, he said, was based on the valuation ment had taken unlawful possession of, and Read the full story
done for every five-year period from 1957, that the Government should pay the company
where he said since 2010, two new build- mesne profits as damages for trespassing, with Read also:
ings were erected on the land, namely the the said damages to be assessed by the court. Malaysia slips one notch to rank 55th
Syariah Court and the MACA. out of 140 in Rule of Law Index
The plaintiff was represented by Ira
This, he added, had increased the value Biswas, along with Janet Chai PeiYing and Company MD pleads guilty to using
of the profit that is being claimed. Christine Lay Kei Een, while the Govern- false document as genuine, fined
ment was led by senior federal counsel Mo- RM80,000
However, it remains to be seen whether hammad Al Saifi Hashim.
the witness’ classification of total profit of
RM3.1 billion is considered mesne prof- The hearing is set to continue onThurs-
its, as Foo had yet to finish his testimony. day before judge Datuk Ahmad Shahrir
Contrasting mode of calculation Mohd Salleh, with continued testimony
Foo said the land had been subdivided into from Foo.
38 lots, where all the lots are placed under
To recap, Semantan Estate also filed an
application for a judicial review in 2017,
where the company wanted the ownership
of the disputed land along Jalan Duta in
Kuala Lumpur to be officially transferred
to the company.

However, High Court judge Datuk Ah-
mad Kamal Md Shahid last year dismissed
the judicial review application to reacquire
the land, with no order as to costs.

t h u r s d a y o c t o B E R 2 7 , 2 0 2 2 19 T h e E d g e C E O m o r n i n g b r i e f

world

Bloomberg

Chipmakers in ‘unprecedented’ slump
rule out quick turnaround

SAN FRANCISCO/SEOUL (Oct 26): by Ian King & Sohee Kim, Takashi Fellow memory maker Kioxia Holdings
Texas Instruments Inc and SK Hynix Mochizuki & Ishika Mookerjee Corp, which is cutting output by 30%, also
Inc offered a gloomy view of the chip Bloomberg said the market is in a severe condition and
market in their latest quarterly reports, there’s little certainty of when sentiment
dashing hopes of a quick rebound for the The memory market will improve.Demand for NAND memory
US$550 billion industry. condition is severe, and is weakening across the board, the Japa-
how long and how deep nese firm said in a news conference at its
Dallas-basedTI, whose chips go into the current adjustment Yokkaichi factoryWednesday.
everything from home appliances to mis-
siles, said on Tuesday that revenue will period would be, is “The memory market condition is se-
top out at US$4.8 billion this quarter — what everyone wants vere, and how long and how deep the cur-
at best — short of the US$4.93 billion an- to know,” says Kioxia’s rent adjustment period would be, is what
alysts had projected. Hynix, meanwhile, everyone wants to know,” President Nobuo
said memory prices fell 20% over the last Nobuo Hayasaka. Hayasaka said.“Demand from PCs, smart-
quarter and warned of “unprecedented phones and data centres is falling and I can’t
deterioration in market conditions”.The affected chips for industrial equipment — an foresee when this will start recovering.”
Icheon-based company slashed its capital area that had been seen as more immune to
spending for next year by at least half. the slump. Its shares fell as much as 6% in Texas Instruments said it wasn’t sur-
late trading onTuesday. Microsoft Corp add- prised by a slowdown in demand for per-
The pair of earnings reports followed ed to concerns by posting its slowest growth sonal devices, but the industrial-equip-
a rally for chip stocks in recent days. in five years, with sales of itsWindows soft- ment market was weaker than expected.
The Philadelphia Stock Exchange Sem- ware to PC makers falling shy of estimates. Overall, orders have worsened and can-
iconductor Index, a key benchmark, had cellations have increased during the cur-
climbed for seven straight sessions, gain- The Biden administration’s effort to rein rent quarter, the chipmaker said.
ing about 11% since the middle of the in China’s chipmaking power has also cast
month. Investors have been trying to pin- a cloud over the industry. Hynix warned Chip peers such as Samsung Elec-
point when flagging demand for chips that its DRAM production plant in Wuxi, tronics Co,Taiwan Semiconductor Man-
would begin to ease. Some welcomed near Shanghai, may be forced to close in ufacturing Co, Intel Corp and Nvidia
Hynix’s action to stem oversupply and an extreme scenario, where US sanctions Corp have all sounded the alarm about
whittle down production of lower-mar- prevent it from importing the equipment slumping demand. Samsung reported its
gin products. Its shares rose as much it needs to sustain and expand production. first profit drop since 2019 at the start of
as 2.1% in Seoul on Wednesday, after this month and will detail its full earn-
slumping 29% on the year. “SK Hynix diagnosed that the semicon- ings on Thursday.
ductor memory industry is facing an un-
“The South Korean chipmaker’s dra- precedented deterioration in market condi- But TI chief financial officer Rafael
matic capital expenditure cut is a bold tions,” the South Korean company said in Lizardi said it’s impossible to say whether
statement demonstrating their determina- its report. “Shipments of PCs and smart- the current slump is simply customers
tion to confront the escalated uncertain- phone manufacturers, which are major cutting back to reduce inventory, or if
ties,” said Hebe Chen, an analyst at IG buyers of memory chips, have decreased.” there’s deeper economic concern at play.
Markets Ltd.The production cut “could
boost the company’s margin if investors Even when the economy is steady,
are willing to take a long-term view”. “you still have semiconductor cycles,” he
said. “Over the last two years, I wouldn’t
TI rekindled fears that the slowdown be surprised if customers have built too
is spreading, saying sluggish demand had much inventory. Now, we’re going the
other way.”

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LONDON (Oct 26): Britain’s new Prime reuters seeing huge expenditure and borrowing to
Minister Rishi Sunak on Wednesday (Oct keep the economy going. He resigned in
26) delayed the announcement of a keen- UK’s Rishi Sunak July in protest at then-prime minister Bo-
ly awaited plan for repairing the country’s delays plan on ris Johnson’s leadership and what he saw
public finances until Nov 17, two-and-a- public finances as a reluctance to take decisions to pay the
half weeks later than originally planned. until Nov 17 pandemic bill.

The postponement, Sunak’s first pol- by William James & Sachin Ravikumar His appointment as Conservative Par-
icy decision since taking over from Liz Reuters ty leader, following Truss’ short stint, was
Truss on Tuesday, pushed up British bor- broadly welcomed by investors who see
rowing costs in financial markets but by Britain’s credibility in financial mar- him and Hunt as more willing to tackle
far less than seen in the panic bond sell- kets was shaken last month when Truss the black hole in Britain’s public finances.
ing caused by Truss’s September tax-cut- announced her unfunded tax cuts, trig-
ting plan. gering a bond market rout so severe the British government bond prices ex-
Bank of England (BOE) had to intervene tended their losses on confirmation of the
Finance minister Jeremy Hunt an- and Truss was forced into a U-turn and budget plan delay. Long-dated gilt yields
nounced the delay in a televised statement, eventually resigned. hit new session highs as they rose 12-13
saying it would take more time to ensure basis points on the day before easing back
the new plan took into account the latest “Our number one priority is economic a bit.
economic forecasts. stability and restoring confidence that the
United Kingdom is a country that pays its Sterling was little changed by the an-
“The prime minister and I have decided way and for that reason, the medium-term nouncement.
that it is prudent to make that statement fiscal plan is extremely important,”Hunt said.
on the 17th of November,” Hunt said. The movements in the bond market
“I want to confirm that it will demon- were small compared with the huge sell-off
The plan is expected to set out how the strate debt falling over the medium term.” triggered by Truss in September.
government will plug a budget shortfall of Market reaction
as much as £40 billion (US$46 billion). Sunak previously served as finance minis- The budget plan delay will complicate
Unlike Truss’s plan last month, it will be ter during the Covid-19 pandemic, over- the BOE’s job next week when it is due to
fully audited by Britain’s fiscal watchdog. publish forecasts for the economy without
knowing the details of the government’s
A statement from Sunak’s office said fiscal plans, as well as take its latest mon-
he told his newly assembled cabinet that etary policy decision.
it was “important to reach the right deci-
sions and there is time for those decisions The BOE is expected to raise interest
to be confirmed with cabinet”. rates again on Nov 3, probably to 3.0%
from 2.25% although investors increased
their bets a full percentage-point increase
to a more than one-in-three chance af-
ter the announcement of the budget plan
delay.

Speaking earlier on Wednesday, Inter-
national Monetary Fund chief Kristalina
Georgieva told Reuters she expected Sunak
to steer Britain towards fiscal sustainabil-
ity and said he was right to warn of hard
decisions ahead.

“I listened carefully to him talking to the
British people, and this is a message that
should resonate across the world. These
are tough times, and tough times require
tough decisions,” Georgieva said.
Read also: IMF chief expects Sunak, third
UK PM in two months, to stick to fiscal
discipline

WASHINGTON (Oct 26):The U.S. trade US goods trade The data was published ahead of the
deficit in goods widened in September deficit widens release on Thursday of the government’s
amid declining exports and rising imports, in September advance estimate of third-quarter gross
but that will probably not change expecta- domestic product. According to a Reuters
tions that trade led an anticipated rebound by Lucia Mutikani survey of economists, GDP likely rebound-
in economic growth in the third quarter. Reuters ed at a 2.4% annualized rate last quarter
after declining at a 0.6% pace in the April-
The goods trade deficit increased 5.7% June quarter.
to $92.2 billion last month, the Commerce
Department said on Wednesday. Exports The economy contracted in the first
of goods fell $2.8 billion to $177.6 bil- half of 2022, but is likely not in recession,
lion. Goods imports rose $2.2 billion to with more than 2.5 million jobs created
$269.8 billion. during that period.

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Temasek in the role, with deputy CFO Png Chin Boeing’s cash
Holdings Pte Ltd Yee set to succeed her on Jan 1, according flow beats
chief executive to a statement in response to a Bloomberg
News query. President Tan Chong Lee is estimates with
officer Dilhan stepping down to lead investment unit 65 787 Dreamliner
Pillay. Equity Partners. General counsel Pek Siok
Lan will go on sabbatical and take up a comeback
Temasek new role in July.
overhauls senior by Julie Johnsson
The management overhaul comes at Bloomberg
management a difficult time for investors including
with CFO Leong Temasek, which managed S$403 billion CHICAGO (Oct 26): Boeing Co’s
stepping down (RM1.35 trillion) as of March 31. More cash surged last quarter as it restart-
than a fifth of its assets are based in Chi- ed 787 Dreamliner deliveries after
by David Ramli & na, which has had a challenging year due a lengthy halt, dulling some of the
Chanyaporn Chanjaroen to Covid-19 restrictions and crackdowns pain after the aviation titan’s earn-
on sectors including real estate and tech- ings missed Wall Street’s estimates
Bloomberg nology. China’s benchmark stock gauge is for a fifth consecutive quarter.
down 26% on the year.
SINGAPORE (Oct 26):Temasek Holdings The plane maker reported
Pte Ltd is making its biggest management Png, who has worked at the firm since US$2.9 billion (RM13.67 billion)
changes since Dilhan Pillay took over as 2011, previously held China-focused lead- of free cash flow for the third quar-
chief executive officer at the Singapore in- ership positions and headed the financial ter, outpacing the US$1.02 billion
vestment giant a year ago. service portfolio. Leong will remain at the average of estimates compiled by
company as president of Singapore markets. Bloomberg. It is only the second time
Chief financial officer LeongWai Leng Boeing has generated positive cash
will step down after more than 16 years The changes are part of the “succession since chief executive officer Dave
planning for key leadership positions with- Calhoun took the top job in early
in the firm, which will see the evolution of 2020. And it gave investors a glimpse
the senior leadership team that will carry of the bounty that awaits as the man-
Temasek through our 2030 journey and ufacturer clears hundreds of unde-
beyond”, a spokesperson said in the state- livered aircraft from its storage lots.
ment to Bloomberg.
Read also: Singapore proposes ban on bor- The performance accompanied
rowing to fund cryptocurrency purchases more bad news from the Arlington,
Virginia-based company’s defence
LONDON (Oct 26): Standard Chartered StanChart division, which racked up US$2.8
plc (StanChart) lost nearly US$100 million CEO admits billion in losses due to cost overruns
(RM471.52 million) in the third quarter US$100 mil loss on its KC-46 aerial tanker, Air Force
after it was caught off guard by the speed when bank caught One, and other military contracts.
of rate hikes. off guard by rapid
Boeing’s adjusted loss was
“With the benefit of hindsight, our rate hikes US$6.18 a share in the period, the
timing was wrong,” said chief executive company said on Wednesday in a
officer Bill Winters, speaking to analysts by Harry Wilson statement, while analysts had expect-
on Wednesday morning. “No ifs, ands, or Bloomberg ed slightly positive earnings. Reve-
buts about that.” nue of US$16 billion also fell short
bank’s so-called structural hedge. of the US$17.7 billion expected by
In a quarter when the London-based StanChart shares were down 5.2% at Wall Street.
bank’s rates traders benefited from a surge
in client activity as markets responded to 10.39am in London despite reporting a The uneven results underscore
the Federal Reserve’s aggressive stance on set of results that beat estimates. Boeing’s slow progress in overcom-
rate hikes, StanChart lost US$97 million ing supplier strains and the finan-
on its own hedges. StanChart is not the only bank to have cial toll from two 737 MAX crashes.
been caught out. HSBC Holdings plc said While cash reflected rising jet de-
The loss was due to StanChart’s view that on Tuesday that it had lost US$900 mil- liveries, it also was boosted by a tax
rates would rise more slowly than they have lion in the third quarter on its own debt refund, around US$1 billion of cash
done. Banks use structural hedges to protect portfolio taking its total year-to-date loss advances and lower compensation
themselves from interest rate fluctuations. to US$5.8 billion. Barclays plc said its had payments to 737 MAX customers,
a net structural hedge charge of £361 mil- Vertical Research Partners analyst
Analysts queued up to quiz Winters and lion (RM1.97 billion) in the third quarter. Robert Stallard said.
chief financial officer Andy Halford on how
the bank had got it wrong, zeroing in on the Read the full story
17th slide in a company presentation deck that
detailed the lender’s own hedging strategy.

“I’m rapidly thinking we should’ve
made Slide 17 Slide 1 in our pack,”
Halford said on the Wednesday earnings
call, after yet another question about the

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BERLIN (Oct 26): International Monetary reuters “At this point we look for getting to a
Fund (IMF) chief Kristalina Georgieva neutral mode, and in most places we are
said on Wednesday (Oct 26) that central IMF chief not quite yet there,” Georgieva said in an
banks should keep raising interest rates Kristalina interview.
further to fight inflation until they hit a Georgieva.
“neutral” level, though in most cases they Central banks have to bring rates up
have not reached this point. IMF chief wants because “when inflation runs high, that un-
central banks to dermines growth, it hits the poorest parts
Speaking to Reuters in Berlin a day keep raising rates of the population the hardest”.
before the European Central Bank is to hit ‘neutral’ level
widely expected to raise rates by 75 ba- Recent rate hikes by the ECB have come
sis points, the fund’s managing director by Christian Kraemer against the backdrop of a deteriorating eco-
said it would take until 2024 for the pos- Reuters nomic outlook and inflation that hit 9.9%
itive effect of central banks raising rates in the euro zone in September, driven by
globally to be felt. soaring food and energy prices after Rus-
sia’s invasion of Ukraine.
The ECB had for months said that
its first step will be to raise rates to Asked how long she expected central
a neutral setting, where it was neither banks to keep raising rates, Georgieva said
driving nor restricting growth, but the IMF projected that “by 2024 to get to
some policymakers are now advocat- a point when central banks are seeing the
ing more aggressive action, saying the impact of their actions”.
ECB should go further to tame infla-
tionary pressures. “The benefits would come but they are
not instantaneous, this requires some pa-
tience in society,” she added.

DUBAI (Oct 26): Former USTreasury sec- reuters Geopolitics, Economics
retary Steven Mnuchin said market watch- Mnuchin, whose company has clinched
ers who were too sanguine about risks to the People are overestimating investment from Saudi Arabia’s sovereign
economy a year ago are now being too alarm- the Fed’s actions just Public Investment Fund, said geopolitics,
ist about the threats presented by inflation and as they underestimated not economics, were a greater risk going
the Federal Reserve’s monetary tightening. it before. forward, echoing earlier comments by JP-
Morgan Chase & Co’s Jamie Dimon a day
Speaking at Saudi Arabia’s Future In- Steven Mnuchin earlier at the conference.
vestment Initiative in Riyadh, Mnuchin
predicted a significant slowdown in Chi- Mnuchin warns “Geopolitical risk — forget the econom-
na and a recession in the US, but expects market watchers ic risk, is higher than we’ve seen in modern
inflation to come under control thanks in who misread Fed times,” Mnuchin said.
part to higher US interest rates. may be wrong again
Europe is going to take longer to come
“A year ago, people underestimated the by Abeer Abu Omar & Zainab Fattah, out of recession than the US because of
risks,” Mnuchin, now managing partner at Christine Burke & Salma El Wardany energy supply issues linked to Russia’s in-
Liberty Strategic Capital, told the confer- vasion of Ukraine, he said.
ence in the Saudi capital. “And my own Bloomberg
view is we’re now overestimating those Mnuchin cited the war in Europe and
risks. All of a sudden everybody has turned ing the pace of hikes will slow to 50 basis US-China frictions, adding that the world’s
incredibly negative.” points in December and then downshift two biggest economies needed to “figure
to 25 basis points early next year. out how to coexist and communicate”.
The Fed has led global central banks
in tightening monetary policy this year in Since then, disappointing news on infla- The US Commerce Department this
the face of the biggest inflation shocks in tion showing core consumer prices rising month unveiled sweeping regulations that
decades. But the worry is that the effort to a 40-year high of 6.6% in September limit the sale of semiconductors and chip-
to cool inflation might cause even greater has led some officials to suggest a higher making equipment to Chinese customers,
harm because higher rates slow business peak may be needed to cool demand and striking at the foundation of the country’s
activity and hurt the economy. reduce price pressures. efforts to build its own chip industry.The
curbs have also cast uncertainty over major
In the US, the central bank has raised Chinese operations run by foreign firms.
its policy rate five times since March, most
recently to a range of 3%-3.25% in Sep- “Clearly, China is going to have a sig-
tember, after dropping the lower bound to nificant slowdown and that will have an
0% in 2020 at the onset of the pandemic. impact on the world economy,” he said.
The market for wagers on the Fed’s bench-
mark last week priced in a peak of 5%, the DanielYergin, vice chairman at S&P Glob-
highest yet, for the first half of 2023. al,struck a similar tone on US-China relations.
Companies around the world are really strug-
“People are overestimating the Fed’s gling to deal with global supply chains “when
actions just as they underestimated it be- you have this kind of confrontation between
fore,” Mnuchin said, forecasting a peak of the world’s two largest economies,” he said.
4.5% in 10-year Treasury yields.
“The US and China aren’t working to-
Fed forecasts released last month gether at all, and the fundamental issue
showed officials expecting rates to reach is what’s happening between the US and
4.4% this year and 4.6% in 2023, suggest- China and this breakdown,” Yergin told
another panel discussion at the conference.

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bloomberg Germany allows
China’s Cosco to
take 24.9% stake
in largest port

Europe’s banks stock and bond issuance to a halt. by Andreas Rinke & Jan Schwartz
brush off crisis Deutsche Bank’s dealmakers suffered Reuters
talk while reaping
rate windfall their worst quarter since the financial cri- BERLIN (Oct 26): The German Cab-
sis, as revenue from advising on stock and inet approved on Wednesday (Oct 26)
by Steven Arons, Sonia Sirletti debt issuance almost completely evaporat- an investment by China’s Cosco for a
& Charles Penty ed.The performance was a sore spot in an 24.9% stake in one of logistics firm HH-
Bloomberg otherwise strong quarter for the bank, as LA’s three terminals in Germany’s larg-
the much larger trading business did better est port in Hamburg.
FRANKFURT/MILAN/MADRID (Oct than peers and income from lending surged.
26): Higher interest rates have been good This is less than the initially planned
for Europe’s banks, mostly. The picture was similar at UBS, where 35% stake that the Chinese shipping
dealmaking and equities trading did poorly, giant had aimed for, and does not give
Firms from Deutsche Bank AG to Ban- and wealthy clients sought returns in cash Cosco any say in management or stra-
co Santander SA this week reported dou- rather than in stocks or bonds, weighing on tegic decisions.
ble-digit gains in lending income, helping fees. Despite that, the wealth unit posted
bolster earnings, even as central banks’ rapid a 23% increase in interest income charged The compromise was negotiated af-
increases in borrowing costs wreak havoc on loans to clients. Fixed income trading ter significant political resistance against
on markets. also surged. Cosco’s participation, and comes a week
before Chancellor Olaf Scholz is due to
Those with large trading operations, in- Spain’s Banco Santander, which has a travel to China.
cluding Deutsche Bank and UBS Group loan-book of more than €1 trillion, was an-
AG, also benefited as the repricing in finan- other beneficiary of central bank moves to Cosco did not immediately reply to a
cial markets fueled revenue from buying tackle inflation from the euro area to the request for comment.A German govern-
and selling debt securities. Some, such as UK and the US, with net interest income ment source told Reuters that the Chi-
Italy’s UniCredit SpA, raised their outlook, surging almost 19% from a year earlier. nese company had agreed to the deal.
recession fears notwithstanding.
Yet the inflationary environment is hand- HHLA, which is majority-owned
Their results help explain why bank ing some banks a growing concern in the by the city of Hamburg and one of the
executives have remained relatively san- form of rising operating costs. Santander is main users of the Hamburg port, had
guine about risks, despite a major energy grappling with expenses linked to inflation no comment.
crisis at their doorstep and an economy and items including labour agreements at its
that appears in a dire situation. After years LatinAmerican banks,and warned that could With the original 35% deal, the Ger-
of contending with negative interest rates, leave it short of its efficiency goal for the year. man logistics firm had wanted to tie its
lenders are finally enjoying a sweet spot long-standing shipping customer to the
where they earn more on loans while fund- Deutsche Bank, too, has struggled to Hamburg port in the face of fierce in-
ing costs are still low and defaults haven’t contain costs. It laid off dozens of origi- ternational competition.
yet increased. nation and advisory staffers within its in-
vestment-banking division, in line with past However, the painful experience of
“I am confident that UniCredit is well years’ efforts to keep a lid on costs, a per- being too dependent on Russian gas has
positioned to manage through whatever son with knowledge of the matter has said. changed the German government’s at-
economic environment we face,” Chief Ex- titude towards strategic foreign invest-
ecutive Officer Andrea Orcel saidWednes- Some European lenders are also be- ments.Economy Minister Robert Habeck
day. He cited “good commercial dynamics, coming less sanguine about another risk was among the politicians who said Ger-
a favourable interest rate environment, cost that comes with higher interest rates and many should avoid Chinese investment in
discipline and low cost of risk”. an economic slowdown — that borrowers critical infrastructure if possible.
eventually may not be able to service their
The interest rate increases fueling such debt.While UniCredit, which raised its full- Supporters of the HHLA deal say it
confidence — including two by the ECB year revenue and profit targets for a second will allow Hamburg, where Scholz was
this year, with another 75 basis point jumbo straight quarter, benefited from lower pro- the mayor for seven years, to keep pace
move expected this week — helped lend- visions for bad loans, Deutsche Bank and with rival ports that are also vying for
ers offset a difficult quarter in capital mar- Santander have started to stash away more. Chinese trade, some of which are partly
kets, where recession concerns and higher owned by Cosco.
financing costs have brought demand for Asked where he sees interest rates head-
ed, UBS CEO Ralph Hamers predicted the Reuters
ECB will lift them as high as 2.25%, with
the Federal Reserve lifting its benchmark
to 5% or even more.

That’s “maybe at the cost of a slight reces-
sion if at all,but that danger is there,” Hamers
said in an interview. Still, “we think its OK”

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China hints at reduced role for
party elders in Xi’s reshuffle

by Zibang Xiao
Bloomberg

SINGAPORE (Oct 26): Retired Chinese China President Xi Jinping speaking following the 20th National Congress of the Communist Party
leaders were omitted from an official ac- of China held at the Great Hall of the People in Beijing, China on Oct 23, 2022.
count of how Xi Jinping chose his new
leadership team, in another indication the Hu became a source of standards named as the leading criteria,
president is consulting with a smaller circle intense speculation after noting that “even those who fit the age cri-
on major decisions. he was removed halfway teria may not continue to be nominated”.
through the closing session.
Xi sought opinions from some 30 senior “The influence of party elders is wan-
Communist Party heavyweights on can- defied an unwritten retirement age of 68 ing, probably more due to Xi’s personal-
didates for top posts, the official Xinhua to stay in power and promote his loyalists ity than to change in intra-party norms,”
News Agency reported, explaining that at the twice-a-decade event. said Lance Gore, senior research fellow
group included Politburo members, sec- at the East Asian Institute of the Nation-
retariat leaders, military officers, and his Retired leaders Jiang and Zhu Rongji, al University of Singapore. “Xi generally
vice president.That compared with 57 be- 94, were absent from the week-long con- believes he knows better than anyone.The
fore the last party reshuffle in 2017, which gress that ended on the weekend, but Hu ‘consultation’ is more of a formality than
state media at the time said included “old was present, and became a source of in- a substantive system.”
party comrades”. tense speculation after he was removed
halfway through the closing session. A state Read also:
The account was the latest sign that media report said he was feeling unwell. Xi’s vow of world dominance by 2049
party elders — a group that includes for- sends chill through markets
mer presidents Jiang Zemin, 96, and Hu All three retired leaders are part of the “President Xi Jinping has put himself in
Jintao, 79 — are playing a diminished role congress’s Presidium Standing Commit- position to rule China for at least another
in shaping decision-making under Xi. On tee, according to state media. That elite decade, and possibly for life.The question now
Sunday, the 69-year-old leader unveiled body’s 46 members were approved at a is what he’ll do with all that power. On one
a new leadership line-up dominated by party meeting on Oct 15 and many flanked level, Xi has made it clear where he wants to
his allies and lacking prominent protégés Xi on stage at the congress. In previous take China.At the opening of the Communist
of Hu’s. years, the body had nominated candidates Party congress last week, he repeated a goal to
for the Politburo, according to a September make China a modern socialist power by 2035,
“Party elders now have much less in- report published in the Diplomat news site boosting per capita income to middle-income
fluence on China’s leadership reshuffle,” by Ling Li, who teaches Chinese politics levels and modernising the armed forces.Then
said Chen Gang, assistant director of the and law at the University of Vienna. It is by 2049, the 100th anniversary of the People’s
East Asian Institute at the National Uni- unclear what role, if any, the body in lead- Republic of China, he wants to ensure the
versity of Singapore. ership selection at this congress. nation “leads the world in terms of composite
national strength and international influence.”
“Xi has utmost power among all Stand- The Xinhua report on Monday said
ing Committee members and party elders. candidate screening took place under the
His authority is supreme,” Outgoing Pre- “direct leadership” of Xi, with political
mier Li Keqiang and former top political
adviser Wang Yang, both 67, on Sunday
became the first Standing Committee lead-
ers to retire early in three decades. Some
leaders had “volunteered to step down for
relatively younger comrades to come up”,
Xinhua said in its report on Monday.

Former party leaders have played a
significant role in building consensus for
major decisions since the days of Mao Ze-
dong, most notably at meeting in the sea-
side resort area of Beidaihe each summer.
State media reported show attendees dis-
cussed the party’s leadership line-up at
that informal huddle in 1997.

Assembling the 24-member Politburo
announced after the latest party congress
required Xi to rewrite rules set and ob-
served by his predecessors, which had for
decades provided a framework for select-
ing leaders representing almost one-fifth
of humanity. Xi repealed presidential term
limits, cast aside seniority expectations, and

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CAIRO/DUBAI (Oct 26): Saudi Aramco Global oil flows bloomberg
has said the global oil market is already ad- shift as Russia
justing to sanctions on Russia, with Mos- hit by sanctions, production because it will not be able to find
cow redirecting crude flows to Asia from says Aramco enough buyers and ships to move all its oil.
Europe and other producers making the Blue hydrogen
opposite switch. by Salma El Wardany & Zainab Fattah The Aramco CEO also said he wanted to
Bloomberg sign blue hydrogen supply contracts before
“Realignment is happening,” Amin pushing ahead with plans to manufacture
Nasser, chief executive officer of the Crude that used to go to the fuel. Seen as crucial for the transition
world’s biggest oil company, said at the Asia is now being directed from oil and coal to cleaner energy, it is
Future Investment Initiative event in Ri- made by converting natural gas and cap-
yadh. “Russians, with the right discount, to Europe and other turing the carbon dioxide emissions.
are able to place their crude in different parts of the world.”
markets.” It may take several years before it is
cheap enough to produce on a mass scale.
Those discounts are helping Russia Blue hydrogen now costs the equivalent
overcome the difficulties it has securing of US$250 to US$300 a barrel of oil, ac-
insurance and shipping for its oil, Nasser cording to Nasser.
said, as the US and Europe tighten sanc-
tions following PresidentVladimir Putin’s “We need an off-take agreement be-
invasion of Ukraine. Moscow has sold its cause these are costly projects,” he said.
flagship Urals crude at roughly US$20- “Without an off-take agreement, you can-
US$30 (RM94.30-RM141.45)a barrel be- not grow that market big time.”
low benchmark Brent futures in the past
six months. Aramco’s first blue hydrogen deals are
likely to be signed with Asian buyers.
“There are logistical issues, insurance
issues,” Nasser said. “But that’s being han- “The market that we’ve identified so far
dled with the right discounts.The flow is is in Japan and South Korea,” he said. “It’s
going to Asia — though, it takes longer. picking up in Europe. But it will take time.”
And crude that used to go to Asia is now
being directed to Europe and other parts
of the world.”

Saudi Arabia and Russia are the world’s
biggest oil exporters. Riyadh typically
sends around 60% of its crude shipments
to Asia — primarily China, Japan, India,
and South Korea.

Still, the European Union’s plan to im-
pose a price cap on Russian crude from
Dec 5 is creating a lot of “uncertainty”,
Nasser said.

Analysts including JPMorgan Chase &
Co have said Russia will be forced to cut

LONDON (Oct 26): A London judge UK court restarts turn the overall ruling. They also argued
has allowed a long-running legal saga be- US$50 bilYukos that recent Russian sanctions made it likely
tween ex-Yukos Oil Co shareholders and that state-owned assets would be removed
the Russian government to restart in the award suit from the UK.
UK to decide whether the country has against Russia
state immunity. Russia was been left without legal rep-
by Katharine Gemmell resentation in the case after British law
Russia was ordered to pay US$50 bil- Bloomberg firms dropped clients from the country
lion (RM235.76 billion) by a Dutch ar- in the wake of the invasion of Ukraine.
bitration court in 2014 after it ruled that White & Case, who were previously rep-
the Kremlin had piled on politically mo- resenting them, pulled out of represent-
tivated efforts to bankrupt the country’s ing them on the case in June, according
once biggest oil company.The action has to court documents.
spilled into courts around the world as
shareholders chase Russia for the money “The first step in the proceedings must
they say they are owed. be the determination of the defendant’s
jurisdictional challenge on the grounds of
Lawyers for Hulley Enterprises Ltd,Yu- state immunity,” judge Christopher Butch-
kos Universal Ltd, andVeteran Petroleum er said in a written judgement onWednes-
Ltd asked a High Court judge earlier this day.The pause on the proceedings will now
month to lift the UK block on the award be lifted “solely for the purpose” of resolv-
enforcement that has been in place since ing Russia’s application on this, he said.
2016. Last year, a Dutch Supreme Court
decision handed Russia a chance to over- Lawyers for the shareholders did not im-
mediately respond to a request for comment.

t h u r s d a y o c t o B E R 2 7 , 2 0 2 2 26 T h e E d g e C E O m o r n i n g b r i e f

world

FRANKFURT (Oct 26): Climate activ- ECB is told green fuel-driven inflation, and they recommend a
ists told the European Central Bank that loans are better green lending facility as a means to do that,
speeding up the energy transition through inflation fix than renewing earlier calls for such an instrument.
a green lending programme may be more
effective than interest-rate hikes in tam- rate hikes “With such a tool, lower rates can be
ing inflation. provided to finance activities needed to
by Jana Randow respond to the energy crisis — renewable
One day before the Governing Council Bloomberg energy development and energy efficiency
is expected to double its key rate to 1.5%, — while higher rates could still be used to
activists sent a letter to President Chris- However, they’ve sought to limit their respond to global inflation,” the letter says.
tine Lagarde and her colleagues, arguing response to managing the risks global
that price pressures in Europe will only warming poses to financial stability, as Lagarde has in the past expressed open-
subside once the energy crisis is fixed. well as their own balance sheet. ness to the idea of using the ECB’s lending
programmes to encourage the transition
“If social responsibility and a will to be Activists argue that proactively contributing to carbon neutrality, even though most of
exemplary alone are not enough to move to a clean energy transition can lower fossil her colleagues are skeptical, amid concerns
the ECB into supporting EU energy tran- such efforts could divert from their prima-
sition policies, the price stability objective Activists argue that ry mandate or prove difficult because not
should be,” six campaign groups includ- proactively contributing to enough data are available.
ing Reclaim Finance, Positive Money Eu- a clean energy transition
rope and the New Economics Foundation In fighting inflation, officials have re-
wrote. “Climate-related inflations can no can lower fossil fuel- lied on their primary tool — interest rates
longer be ignored because they will simply driven inflation. — and traditional arguments that one way
not go away.” of ensuring high price gains today don’t
fuel expectations of similar increases in
The remarks illustrate another di- the future is to curb demand.
mension to the political pressure bear-
ing down on the ECB, at a time when “Rate rises do little to address the root
officials are trying to bring record infla- causes of current inflation, namely en-
tion of 9.9% under control, just as the ergy and food prices boosted by a fos-
energy crisis crushes economic growth. sil fuel supply crisis,” Paul Schreiber, a
campaigner at Reclaim Finance, said in
Policymakers have acknowledged that a note accompanying the letter. “Higher
structural shifts in the economy — in- rates also means higher capital cost and
cluding climate change — will keep tougher financing conditions that could
price growth higher than in previ- impair the role-out of renewable energy
ous decades.
and of energy efficiency.”

Reuters

PARIS (Oct 26): TotalEnergies SE has TotalEnergies use of fossil fuels to fight global warming.
agreed to pay as much as US$580 mil- buys US$580 mil “With this transaction, TotalEnergies
lion (RM2.73 billion) to buy a stake in
wind and solar power projects developed stake in Brazil acquires not less than a leading position
by Brazilian firm Casa dosVentos (CDV), wind and solar in the Brazilian renewable energy market,
the latest move by the French oil and gas one of the most dynamic merchant mar-
giant to expand in clean energy. by Francois de Beaupuy kets in the world,” chief executive officer
Bloomberg Patrick Pouyanne said in the statement.
Under the deal,TotalEnergies will hold
34% and CDV will hold 66% in a venture Bloomberg TotalEnergies will pay as much as
that will jointly develop, build, and operate US$30 million in so-called earn-out to
the renewable portfolio of the Brazilian complete the deal on top of the US$550
company. The venture will also have the million cash payment, the company said.
right to buy new projects developed by It will have the option to buy a further
CDV, TotalEnergies said in a statement 15% stake in the joint venture after five
on Wednesday. years.

The transaction follows a series of “With a total of 12 gigawatts in opera-
deals to boost TotalEnergies’ low-carbon tion, construction, and development, both
footprint, including transactions in the wind and solar, this transaction is an ad-
US and India. The company aims to be ditional step inTotalEnergies ambition to
among the five biggest renewable firms reach 100 gigawatts of renewable produc-
worldwide by 2030 as governments, busi- tion by 2030 and in its transformation into
nesses, and consumers seek to reduce the a sustainable and profitable multi-energy
company,” Pouyanne said.

t h u r s d a y o c t o B E R 2 7 , 2 0 2 2 27 T h e E d g e C E O m o r n i n g b r i e f

world

Young Americans seen failing to match
Baby Boomers’ wealth gains

NEWYORK (Oct 26): An epic four-dec- by Ben Steverman The study tries to identify what caused
ade boom in housing and stock prices Bloomberg this unequal rise in wealth by disentangling
made Baby Boomers the richest genera- the effects of capital gains — rising asset pric-
tion in US history. A new study shows just The wealth gap between es — from the decision to save money in
how difficult it will be for younger Amer- adults over 60 and those the first place.The authors conclude rising
icans to copy that success. income inequality and investment gains pro-
under 40 has more duced a unique synergy for the richest 10%.
The wealth boom since 1980 widened than doubled since the
the gaps between rich and poor and young By earning more, they could afford to
and old to record levels, the research finds. 1960s and 1970s.” save a greater amount in middle age. In the
two decades before 1983, the richest 10th
While the gains were concentrated at income to compare nest eggs across widely of Americans aged 40 to 60 saved about 4%
the top, bypassing the poorer half of the age varying economic conditions. of national income per year. More recently,
group, the average older Boomer reached from 1995 to 2018, wealthier middle-aged
retirement age 65% richer than the gener- “Wealth in the US is ageing,” the study adults have saved 9.3% of national income.
ations born before World War II. concludes. In the past several decades, all gen-
erations started their careers with approxi- Once the money was set aside, rising
Millennials and other young Americans mately the same amount of wealth, roughly markets did the rest.
now face a steep climb. 1.5 times income. But Americans born from
1940 to 1960 have significantly outperformed: “More and more, the accumulation of
Even before stock markets tumbled this By age 60, older Baby Boomers accumulated wealth takes place through the boom in
year, younger generations were lagging be- 10 years of income on average — up from five asset prices,” Bauluz said.
hind Boomers. In the working paper’s most to six years of income in previous generations.
recent data, the wealth gap between adults By contrast, generations older than the
over 60 and those under 40 has more than Inequality among members of the same Baby Boomers were not as lucky timing the
doubled since the 1960s and 1970s. generation has also risen.The richest 10% of market. Hit by inflation and stock losses in
Americans 60 or older have about 40 times their middle and later years, they could not
As millennials buy real estate and stocks income in savings, while the poorest half have rely on capital gains to inflate their wealth
at elevated prices and the elderly tap into barely the equivalent of a year of income — and needed to be far more conservative
nest eggs, there has been a “transfer of re- to rely on in retirement. Inequality is even about spending in retirement.
sources from the young to the old”, said higher for younger Boomers and Generation
Luis Bauluz, an economics professor at X, the cohort born between 1960 and 1979. The study found Americans born in the
Madrid’s CUNEF University, who con- The richest 10% of these middle-aged Amer- first two decades of the 20th century lost
ducted the research with University of icans hold more than two-thirds of their age money in equities and housing overall, es-
Bonn graduate student Timothy Meyer. group’s overall wealth, Bauluz and Meyer pecially in the 1970s.They had to build up
estimate, up from about half for the gener- wealth the old-fashioned way:by setting aside
For younger generations to match ation born 60 years earlier. money from each paycheque and saving it.
Boomers’ retirement wealth, asset valua-
tions will need to keep rising — and do so Will millennials’ wealth path resemble
in an era marked by higher inflation and that of the Boomers, or earlier generations?
interest rates. Bauluz worries the post-1980 boom was a
one-off event that will not repeat itself.
Using a recently developed data set of
US household finances, the research tracks “There’s not a lot of room for this
the generations born since 1900 as they mechanism to be as powerful in the fu-
worked, saved, invested, retired, and died. ture,” Bauluz said. “My intuition is that
The study measures wealth as a share of we are close to the limit.”

Bloomberg

T H U R S D A Y O C T O B E R 2 7 , 2 0 2 2 28 T H E E D G E C E O M O R N I N G B R I E F

MARKETS

CPO RM 4,107.00-20.00 OIL US$ 93.630.11 RM/USD 4.7142 RM/SGD 3.3472 RM/AUD 3.0508 RM/GBP 5.4535 RM/EUR 4.7268

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)

BETAMEK BHD 260.46 0.210 0.710 42.00 319.5

TOP GLOVE CORP BHD 113.49 0.040 0.755 -70.85 6,045.5

SERBA DINAMIK HOLDINGS BHD 103.03 0.000 0.020 -94.29 74.2

VINVEST CAPITAL HOLDINGS BHD 63.74 -0.025 0.190 -58.70 184.1

SAPURA ENERGY BHD 60.73 -0.005 0.040 -20.00 639.2

CAREPLUS GROUP BHD 60.40 0.050 0.445 -57.21 254.8

MY EG SERVICES BHD 55.15 0.013 0.840 -21.50 6,247.9

HONG SENG CONSOLIDATED BHD 42.83 0.015 0.235 -82.53 1,200.5

SUPERMAX CORP BHD 36.70 0.070 0.930 -36.73 2,459.7 World equity indices

HLT GLOBAL BHD 34.08 0.030 0.275 -46.08 202.5

CITAGLOBAL BHD 33.92 0.010 0.270 14.89 307.0 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

HARTALEGA HOLDINGS BHD 31.60 0.220 2.070 -63.87 7,074.1 (%) (%)
DOW JONES 31,836.74 337.12 1.07 INDONESIA 7,043.94 -4.44 -0.06
ADVANCE SYNERGY BHD 29.73 0.000 0.070 -36.36 74.3

UEM SUNRISE BHD 23.10 0.000 0.195 -39.06 986.4 S&P 500 3,859.11 61.77 1.63 JAPAN 27,431.84 181.56 0.67

SNS NETWORK TECHNOLOGY BHD 22.67 0.000 0.245 -2.00 395.1 NASDAQ 100 11,669.99 239.73 2.10 KOREA 2,249.56 14.49 0.65

NWP HOLDINGS BHD 22.05 0.000 0.230 -6.12 130.5 FTSE 100 6,981.55 -31.93 -0.46 PHILIPPINES 6,121.53 48.12 0.79

CIMB GROUP HOLDINGS BHD 21.89 -0.040 5.550 1.83 58,132.1 AUSTRALIA 6,810.87 12.25 0.18 SINGAPORE 3,008.38 24.23 0.81

SUNVIEW GROUP BHD 20.45 -0.005 0.490 68.97 231.7 CHINA 2,999.50 23.22 0.78 TAIWAN 12,729.05 62.93 0.50

YEW LEE PACIFIC GROUP BHD 20.00 0.015 0.300 7.14 159.7 HONG KONG 15,317.67 152.08 1.00 THAILAND 1,596.46 -4.20 -0.26

JADE MARVEL GROUP BHD 18.90 0.005 0.275 -58.33 115.1 INDIA 59,543.96 -287.70 -0.48 VIETNAM 993.36 -4.34 -0.44

Data as compiled on Oct 26, 2022 Source: Bloomberg Data as compiled on Oct 26, 2022 Source: Bloomberg

Top gainers (ranked by %) Top losers (ranked by %)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

VSOLAR GROUP BHD 0.010 100.00 757.8 -33.33 48.3 GREEN OCEAN CORP BHD 0.010 -33.33 210.0 -66.67 21.1

BARAKAH OFFSHORE PETROLEUM 0.030 50.00 134.7 -62.50 30.1 DGB ASIA BHD 0.010 -33.33 395.0 -66.67 17.9

BETAMEK BHD 0.710 42.00 260,458.8 42.00 319.5 FOCUS DYNAMICS GROUP BHD 0.015 -25.00 675.6 -62.50 95.6

PASUKHAS GROUP BHD 0.020 33.33 1,112.6 -20.00 38.1 PUC BHD 0.025 -16.67 118.4 -82.76 40.6

BCM ALLIANCE BHD 0.020 33.33 1,440.0 -33.33 40.7 BINA PURI HOLDINGS BHD 0.030 -14.29 75.1 -33.33 47.9

EDUSPEC HOLDINGS BHD 0.020 33.33 3,297.2 33.33 60.9 TPC PLUS BHD 0.200 -13.04 4.7 5.26 61.6

EVERSENDAI CORP BHD 0.130 30.00 581.5 -25.71 101.5 MINETECH RESOURCES BHD 0.035 -12.50 10.0 -65.00 44.4

METRONIC GLOBAL BHD 0.025 25.00 16,915.7 -79.52 38.3 CSH ALLIANCE BHD 0.035 -12.50 647.4 -63.16 48.3

KOMARKCORP BHD 0.055 22.22 1,616.4 -52.17 31.8 VINVEST CAPITAL HOLDINGS BHD 0.190 -11.63 63,736.5 -58.70 184.1

SOLUTION GROUP BHD 0.230 21.05 14,059.5 -58.18 101.1 SAPURA ENERGY BHD 0.040 -11.11 60,728.3 -20.00 639.2

ZEN TECH INTERNATIONAL BHD 0.030 20.00 119.0 -73.91 24.3 AVILLION BHD 0.080 -11.11 6,440.5 -23.81 90.7

ECM LIBRA GROUP BHD 0.195 18.18 3.8 8.33 93.6 GREEN PACKET BHD 0.040 -11.11 6,450.1 -50.00 63.8

SERSOL BHD 0.130 18.18 1,503.9 -39.81 77.0 SCOMI ENERGY SERVICES BHD 0.040 -11.11 100.0 -27.27 18.7

ALDRICH RESOURCES BHD 0.035 16.67 1,445.0 -12.50 39.0 PINEHILL PACIFIC BHD 0.335 -10.67 2.0 -35.58 50.2

HANDAL ENERGY BHD 0.145 16.00 658.2 -27.50 34.9 WAJA KONSORTIUM BHD 0.085 -10.53 122.1 -41.38 83.7

ANCOM LOGISTICS BHD 0.145 16.00 14,479.6 -14.71 68.6 TRIVE PROPERTY GROUP BHD 0.045 -10.00 31.5 50.00 56.9

CAREPLUS GROUP BHD 0.445 12.66 60,402.5 -57.21 254.8 ZELAN BHD 0.045 -10.00 1.3 -43.75 38.0

MTOUCHE TECHNOLOGY BHD 0.045 12.50 181.4 -50.00 41.7 ASTRAL ASIA BHD 0.100 -9.09 135.0 -13.04 66.0

HLT GLOBAL BHD 0.275 12.24 34,079.7 -46.08 202.5 PAN MALAYSIA HOLDINGS BHD 0.055 -8.33 1136.0 -31.25 51.1

HARTALEGA HOLDINGS BHD 2.070 11.89 31,600.8 -63.87 7074.1 EFFICIENT E-SOLUTIONS BHD 0.165 -8.33 235 -21.43 117

Data as compiled on Oct 26, 2022 Source: Bloomberg Data as compiled on Oct 26, 2022 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

KUALA LUMPUR KEPONG BHD 22.420 0.940 682.2 2.94 24,172.3 IMASPRO CORP BHD 6.000 -0.300 49.5 141.94 480.0

CARLSBERG BREWERY MALAYSIA 22.260 0.420 34.1 10.86 6,806.0 NEGRI SEMBILAN OIL PALMS BHD 3.350 -0.250 0.2 10.44 235.2

NESTLE MALAYSIA BHD 133.000 0.400 47.5 -0.89 31,188.5 HEXTARTECHNOLOGIES SOLUTIONS 10.300 -0.200 476.9 310.36 1,325.1

HARTALEGA HOLDINGS BHD 2.070 0.220 31,600.8 -63.87 7,074.1 MALAYSIAN PACIFIC INDUSTRIES 24.780 -0.140 111.5 -49.80 4,928.7

BETAMEK BHD 0.710 0.210 260,458.8 42.00 319.5 HEINEKEN MALAYSIA BHD 23.340 -0.140 319.2 12.00 7,051.0

GENTING PLANTATIONS BHD 6.000 0.200 264.6 -8.98 5,383.2 SCIENTEX PACKAGING AYER KEROH 2.120 -0.130 0.1 -11.67 743.3

AEON CREDIT SERVICE M BHD 13.020 0.200 256.5 -4.06 3,324.1 PANASONIC MANUFACTURING 23.000 -0.100 0.7 -20.42 1,397.2

KESM INDUSTRIES BHD 7.000 0.200 15.1 -43.00 301.1 AJIYA BHD 1.210 -0.090 7,878.2 8.04 345.8

BATU KAWAN BHD 21.260 0.180 4.0 -6.34 8,367.1 PIE INDUSTRIAL BHD 2.610 -0.090 209.6 -30.83 1,002.3

HAP SENG CONSOLIDATED BHD 6.080 0.180 155.4 -21.04 15,137.2 DUTCH LADY MILK INDUSTRIES 30.400 -0.080 0.6 -9.31 1,945.6

BRITISH AMERICAN TOBACCO 10.300 0.160 152.6 -26.32 2,941.0 UWC BHD 3.600 -0.080 177.8 -42.03 3,964.9

DIGI.COM BHD 3.750 0.130 3,017.7 -13.99 29,156.3 AMMB HOLDINGS BHD 4.070 -0.080 3,914.7 28.39 13,478.8

IOI CORP BHD 4.040 0.130 1,741.4 8.31 25,080.2 PRESS METAL ALUMINIUM 4.320 -0.080 3,589.5 -25.26 35,595.1

PETRONAS DAGANGAN BHD 21.000 0.120 243.9 1.94 20,862.5 KAWAN FOOD BHD 2.190 -0.070 981.0 33.54 790.3

TENAGA NASIONAL BHD 8.370 0.120 1,329.6 -10.39 48153.3 PIMPINAN EHSAN BHD 1.210 -0.060 0.4 -17.12 83.6

MAXIS BHD 3.690 0.120 1,823.7 -23.73 28,893.2 TEXCHEM RESOURCES BHD 3.200 -0.060 255.7 175.86 381.3

HONG LEONG INDUSTRIES BHD 9.260 0.110 61.6 0.87 2958.3 HONG LEONG BANK BHD 21.100 -0.060 930.5 13.32 45,738.8

SUNGEI BAGAN RUBBER CO MALAYA 3.300 0.100 51.4 1.85 218.9 IHH HEALTHCARE BHD 5.950 -0.050 2,515.6 -18.94 52,396.0

PPB GROUP BHD 16.700 0.100 429.7 -2.34 23757.4 CHIN TECK PLANTATIONS BHD 8.590 -0.050 1.4 24.72 784.8

DIALOG GROUP BHD 1.910 0.100 7856.2 -27.1 10777.3 ORIENTAL FOOD INDUSTRIES 1.280 -0.040 65.5 39.13 307.2

Data as compiled on Oct 26, 2022 Source: Bloomberg Data as compiled on Oct 26, 2022 Source: Bloomberg