CEOMorningBrief THURSDAY, FEBRUARY 8, 2024 ISSUE 714/2024 theedgemalaysia.com SINGAPORE EX-PM’S SON FOUND LIABLE FOR MILLIONS LOST BY COMPANY p16 Wealth is… always having peace of mind. If investment plans are what you’re looking for, we’ve got you. With more than 140 years of global financial services expertise and close to 30 years of local experience, we’ve been helping discerning investors like yourself in Malaysia achieve their long-term retirement goals. Reach out to our Financial Consultants or Bank Distributors for more info. For All It’s WorthSM Conventional and Shariah solutions: Unit Trust | Private Retirement Schemes www.principal.com.my Disclaimer: The information contained herein is intended for general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. The information contained herein does not consider an investor's investment objectives, particular needs, or financial situation. Investors should understand the risks involved, compare and consider the fees, charges and costs involved, make their own risk assessment and seek professional advice, where necessary. This material has not been reviewed by the Securities Commission of Malaysia. HOME: Najib planning fresh pardon application, waiting for new king to get settled — lawyer p4 Manufacturing sales value down 4.2% y-o-y to RM149.9 bil in Dec 2023, says DOSM p6 Carlsberg’s FY2023 profit hits record high on absence of one-off prosperity tax p7 WORLD: DBS cuts CEO’s pay by millions on digital banking outage p16 China replaces head of securities regulator amid market turmoil p17 Shafee makes startling claims about events leading to Najib’s reduced sentence by Pardons Board Report on Page 3. ZAHID IZZANI/THEEDGE
THURSDAY FEBRUARY 8, 2024 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: eeditor@bizedge.com to advertise: advertising@bizedge.com the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list ceomorningbrief@bizedge.com Mavcom-CAAM merger to be tabled in Parliament this year — Loke We have met MYAirline’s new potential investors — Loke Ministry issues stern warning over discriminatory palm oil labelling SEPANG (Feb 7): The merger between the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM) into a single aviation regulatory agency is still under discussion. Transport Minister Anthony Loke said that the matter was expected to be brought to Parliament this year, either in the second or third session. He made this statement to the media after seeing off passengers of Batik Air departing from Kuala Lumpur to Sibu at the Kuala Lumpur International Airport (KLIA) Terminal 1, here on Wednesday. The second session of the Parliament sitting is scheduled from June 24 to July 18, while the third session is expected from Oct 7 to Dec 5. The merger between Mavcom and CAAM was announced by Loke in 2019. Currently, Malaysia is one of the few countries with two aviation regulators, namely Mavcom and CAAM. Mavcom oversees the financial, commercial, and economic aspects of aviation companies, while CAAM focuses on technical aspects. Meanwhile, Batik Air’s group strategy director, Datuk Chandran Rama Muthy, who was also present at the send-off event, announced that the airline will reinstate two daily flights between Kuala Lumpur and Sibu starting Feb 6, in response to growing demands and aligning with the government’s initiative to increase flight frequencies between East and Peninsular Malaysia. He mentioned that due to the high travel demand during the Lunar Chinese New Year celebrations, Batik Air would offer an additional daily flight between Feb 6 to 9, departing at 5pm and departing from Sibu at 7.55pm. Bernama Bernama Bernama HOME SEPANG (Feb 7): The Transport Ministry has met with the new potential investors of MYAirline Sdn Bhd and said any commercial decision is entirely up to the management. Transport Minister Anthony Loke said that as far as the government is concerned, they have to comply with all processes in terms of regulations, in terms of applying to Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM). “All their applications must be submitted according to normal procedures for technical approvals. However at this point in time we have not heard of any application from them yet,” he told the media after sending off Batik Air’s passengers en route to Sibu from the KL International Airport here on Wednesday. Loke also said he has made it clear to MYAirline that the country’s aviation policy stated 51% must be owned by local companies while any foreign entity can only own up to 49%. On Jan 12, it was reported that MYAirline had secured and signed a sale and purchase agreement (SPA) in late December 2023 with an investor from the Middle East. This would allow MYAirline to work towards resuming operations by the middle of this year. To recap, MYAirline flew over one million passengers domestically as of June 26, 2023, a few months after its inaugural flight as a low-cost carrier in Malaysia. The airline had an average load factor of 91% and flew eight Airbus A320-200 aircraft till Oct 12, delivering a healthy ontime performance beyond 90%. On Oct 12 last year, MYAirline made a sudden announcement that it had suspended its operations effective on that day, citing financial pressure as the reason. PUTRAJAYA (Feb 7): The Ministry of Plantations and Commodities (KPK) will take stern action against any party involved in discriminatory or negative labelling of palm oil. In a statement on Wednesday, the ministry said it takes the issue seriously and will take strict action in accordance with laws and regulations against importers, traders, sellers, and related parties who commit such offences. “The Multi-Agency Enforcement Force (MAEF) conducted inspections at several premises in Selangor under the Trade Descriptions (Prohibition of Use of Statement, Expression or Indication) (Oil Palm Product and Palm Oil Goods) Regulations 2022 on Jan 26. The penalty for a violation of the above regulations is a fine of up to RM220,000 or imprisonment of up to five years. “During the inspections, it was found that some food products in these establishments were conspicuously labelled with discriminatory labelling against palm oil (DLAPO), for example with statements such as ‘no palm oil’ or ‘without palm oil’,” it said. These shops included those selling local products such as baby food and imported food labelled DLAPO. It is important to note that some importing companies placed stickers on the investigated products labelled “Imported and distributed by”. “During the inspections, the shop managers were informed of the ban on the use of the label and asked to clear the shelves until further action is taken. Read also: M’sia to work with Egypt to expand palm oil exports to Africa, says Johari Ghani
THURSDAY FEBRUARY 8, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): Datuk Seri Najib Razak’s lawyer Tan Sri Muhammad Shafee Abdullah made a sensational claim of what transpired during the Pardons Board meeting chaired by former Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah on Jan 29. Shafee said that the then YDPA was initially mulling to grant a full pardon to his client, but later changed it to a commuted sentence. Meanwhile, members of the Pardons Board, of which the YDPA was the chair, had recommended for the former prime minister to continue serving his sentence. During a press conference at the Kuala Lumpur Courts Complex, Shafee said that he got the story through reliable reports on the matter on what transpired during the Pardons Board meeting. “What happened on Jan 29? I’m told and I’m confident this happened, otherwise I wouldn’t dare to tell you. On [Jan 29], the YDPA was thinking of a full pardon, but he wanted to be sure,” said the senior lawyer. Shafee said that the YDPA then gave four ballot papers or votes to the four non-permanent members of the Pardons Board to indicate their choices of a full pardon or not. “He gave out the votes around to the four non-permanent members [of the Pardons Board] to put ‘yes or no’ for a full pardon,” Shafee said, adding that the pieces of paper were later returned to the YDPA. “The results came back. I don’t know what the results were. Then he (the YDPA) said, nevermind, I have decided the alternative. And the alternative is what this is,” Shafee said while holding official letters of Najib’s commuted sentence. Shafee also revealed that discussions on Najib’s actual pardon started on Dec 8 last year, where it was heading towards a particular direction. Shafee stopped from revealing more about the purported “direction”. “The actual detailed [pardon] discussions started on Dec 8, 2023. [It’s] very detailed, I think. It went on for a couple hours, and they discussed Najib’s matter and so on. It was going in a particular direction, which I’m not entitled to say. It’s not nice because it is supposed to be a secret,” the senior lawyer said. However, the former YDPA decided to not make a decision on Najib’s pardon on Dec 8, 2023. There were several postponements leading up to the final meeting on Jan 29. ‘Pardons Board recommended that Najib continue serving his sentence’ One theme that clearly struck out throughout the press conference on Wednesday was the purported discrepancies surrounding the pardon decision. Shafee also divulged that the Pardons Board had recommended to the YDPA for the former finance minister to continue serving his sentence. The senior lawyer extracted this information from a separate document received by Najib titled “Early Release Order” (Perintah Pembebasan Awal) signed and sealed by the YDPA. The document was not dated, and was addressed to the director general of prisons. Shafee said that a three-page letter dated Jan 29, signed by Federal Territories Minister Dr Zaliha Mustafa, was attached to it. Reading out its contents, Shafee said that the Pardons Board had advised the YDPA that Najib continue serving his sentence. However, Shafee also added that within the same document, the YDPA said that it seemed reasonable for him to practise his discretion that compassion had to be given to Najib. This was followed by BY TIMOTHY ACHARIAM & TARANI PALANI theedgemalaysia.com Shafee makes startling claims about events leading to Najib’s reduced sentence by Pardons Board the indication of the commuted jail term and a reduction in the fine. Shafee said the document also indicated that the YDPA had signed and sealed the document. However, it bore Zaliha’s signature. It has to also be pointed out that Shafee merely showed the media these documents, but did not share physical copies of them. The senior lawyer pointed out earlier that although the YDPA could consult and listen to the advice of others, the sole discretionary power to grant the pardon rested on the YDPA. Najib was serving a 12-year prison sentence in Kajang after the apex court dismissed his final appeal in the RM42 million SRC International Sdn Bhd case in August 2022. He was also slapped with a RM210 million fine. But the Pardons Board announced last week that the former prime minister’s jail time had been halved to six years, while the fine was reduced to RM50 million. Shafee also confirmed on Wednesday that his client had yet to pay the fine, and that the grounds for the pardon filed in early September were that the former prime minister did not receive a fair trial to begin with. Najib’s defence team is also “seriously” mulling a fresh application for a full pardon, but will await the right time to send it in. ZAHID IZZANI/THE EDGE
thursday february 8, 2024 4 The E dge C E O m o rning brief home KUALA LUMPUR (Feb 7): Lawyer Tan Sri Muhammad Shafee Abdullah announced that former prime minister Datuk Seri Najib Razak is waiting for the right time to file a fresh application as he seeks a full pardon. Shafee said that Najib is waiting for the newly crowned King of Malaysia, His Majesty Sultan Ibrahim to “warm his seat” before filing his application. “I don’t want to push it (the application), the YDPA hasn’t warmed his seat yet, we have to time it right,” he said at a press conference at the Kuala Lumput court complex here to address Najib’s commuted jail sentence for the SRC International case. He said that the fresh application for a full pardon is because the current Pardons Board did not act in accordance with its role in the Constitution. “Reason for [the new] request [for a full pardon] is because we don’t think the Pardons Board operated the way the Constitution expected them to,” he said. He elaborated that while the king can hear views of the Pardon Board, any decision has to be his, and his alone. “The YDPA must hear the board but he decides on his own on whether to pardon or not,” he said. “It is unclear if the process of the Pardons Board and the decisions made thereto are regular or otherwise. But the law is clear that the royal prerogative of mercy is the sole discretion of the king. It is unfettered and non-challengeable in any court. “This is trite law. But due to the inconsistencies pointed out, many members of the public are rather concerned. Najib is most baffled,” he said. Shafee then lambasted detractors and critics of Najib’s commuted sentence, such as Malaysian Bar president Karen Cheah Yee Lynn, G25 and constitutional expert Shad Saleem Faruqi. He said some of the comments were uncalled for, taking aim at G25 and Cheah. He labelled G25 as “completely ignorant” in saying that Najib needs to be repentant to get a pardon. “It is completely ignorant and missed the boat,” Shafee said, adding that Najib’s application for a pardon was because he by Timothy Achariam & Tarani Palani theedgemalaysia.com Najib planning fresh pardon application, waiting for new king to get settled — lawyer was not granted a fair trial and his constitutional rights were not adhered to in the court process of his SRC International trial and subsequent appeals. As for Cheah, he said that her statement that the king has to listen to members of the Pardons Board in order to arrive at a decision is wrong. “Pardon is sole prerogative of YDPA, he can listen to advice of the board. But it is his sole decision. You cannot challenge and his discretion is absolute. Karen Cheah seems to think otherwise… she says you must listen to four to five other members of the panel. I think she should go back to law school,” he said. She said it was the Bar’s position that under the Federal Constitution, the exercise of the power to grant pardons vested in the king must be exercised on advice, and that the king shall accept in accordance with such advice. During the press conference, Shafee also highlighted what he described as discrepancies in the press release issued by the Pardons Board last week to announce Najib’s commuted sentence. He also said that the statement seemed to suggest that the Pardons Board made the decision and not the king. Shafee reiterated Najib’s innocence and said that the RM42 million which entered Najib’s account was all used for charity and elections, and not for his own use. He said that his client should not have even seen a day in jail, as his right to a fair trial had been impinged. “This pardon was anchored on the lack of fair trial, not on his sentence. For SRC, he shouldn’t be in prison for a day because his constitutional right was not given during the trials,” he said. Last Friday, the Pardons Board released a brief statement which said that Najib’s release date would now be pushed forward to Aug 23, 2028, with the RM210 million fine reduced to RM50 million. The statement added that the 61st Pardons Board meeting chaired by then Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah had convened on Monday (Jan 29). Five pardon papers, including Najib’s case, had been up for consideration. Najib, who turns 71 in July, is currently serving his prison sentence in Kajang after the apex court dismissed his final appeal in the RM42 million SRC International case in August 2022. He was originally slapped with a RM210 million fine. It is unclear if the former finance minister has paid his fine, although typically he does have until the end of his jail sentence to do so. Subsequently, he filed a bid to review the decision. A fresh five-member panel then heard the review and dismissed his application with a majority 4-1 decision. Reading the majority decision, then Federal Court judge Vernon Ong said there was no miscarriage of justice in the top court’s decision. Najib filed an application for a royal pardon in early September, merely days after beginning his time in prison. Read also: Reduction in Najib’s prison sentence and fine draws flak from Malaysian Bar Pardon is sole prerogative of YDPA, he can listen to advice of the board. But it is his sole decision. You cannot challenge and his discretion is absolute. Karen Cheah seems to think otherwise… she says you must listen to four to five other members of the panel. I think she should go back to law school,” Tan Sri Muhammad Shafee Abdullah said.
THURSDAY FEBRUARY 8, 2024 5 THEEDGE CEO MORNING BRIEF
THURSDAY FEBRUARY 8, 2024 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): Malaysia’s industrial production index (IPI) dipped by 0.1% year-on-year (y-o-y) in December 2023 — after recording positive growth for two consecutive months — weighed down by the manufacturing sector, according to the Department of Statistics Malaysia (DOSM). The IPI expanded by 2.4% y-o-y in October 2023 and 0.6% y-o-y in November 2023. According to DOSM’s statement, the manufacturing sector contracted by 1.4% in December (versus a 0.1% dip in November) as export-oriented industries dropped by 4.1% (from a 2.7% slip the prior month). “The contraction was mainly attributable to the fall in the manufacture of computer, electronics and optical products (-7.2%), manufacture of coke and refined petroleum products (-4.6%), and the manufacture of electrical equipment (-7.6%). “This decline mirrored the country’s export performance, which continuously fell to a larger negative of 10.0% in December 2023. On a month-onmonth comparison, the export-oriented industries weakened by 3.3%,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin. The mining sector recorded 3.6% growth, propelled by a 5% expansion in natural gas production as well as a 1.6% increase in crude oil and condensate. The electricity sector, meanwhile, rose 4.6% after registering an increase of 4.3% in the preceding month. Overall, the IPI increased by 0.9% in 2023 as compared to 6.7% in 2022, said Mohd Uzir. All sectors posted positive growth during the year, namely the electricity index (2.5%), mining index (0.8%), and manufacturing index (0.7%), he added. Read also: DOSM: Malaysia’s services producer price index up 1% y-o-y in 4Q2023 Malaysia’s Dec 2023 IPI slips 0.1% y-o-y as manufacturing sector contracts KUALA LUMPUR (Feb 7): The sales value of the manufacturing sector declined by 4.2% year-on-year (y-o-y) to RM149.9 billion in December 2023, marking the largest decline since May 2020, according to the Department of Statistics Malaysia (DOSM). Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the decrease was primarily influenced by the continuous decline in the petroleum, chemical, rubber and plastic products sub-sector since June 2023, registering a negative 13.6% in December 2023. Moreover, the electrical and electronics products sub-sector dropped by 4.6%, while the food, beverages and tobacco sub-sector slipped by 2.6%. “As compared to the preceding month, the sales value shrank by 3.3% compared to RM155 billion recorded in November 2023,” he said in a statement on Wednesday. Mohd Uzir said the sales value of export-oriented industries, which accounted for nearly 70% of total sales, further declined by 8.4% in December 2023 after shrinking by 6.9% in November 2023, mainly due to the drop in the manufacture of coke and refined petroleum products at negative 24.9%, followed by the manufacture of vegetable and animal oils and fats (-8.6%), and the manufacture of computer, electronics and optical products (-4.8%). Nevertheless, he said the domestic-oriented industries remained upbeat by recording a positive growth of 6.7% in December 2023, underpinned by the sturdy expansion in the manufacture of fabricated metal products, except machinery and equipment at 11.5%. The manufacture of motor vehicles, trailers and semi-trailers experienced a growth of 8%, while the manufacture of food processing products increased by 6.8%. On a month-on-month basis, Mohd Uzir said export-oriented industries dropped by 3.9%, while domestic-oriented industries expanded by 1.8%. Manufacturing sector engaged persons increased by 1.7% y-o-y Meanwhile, Mohd Uzir said the manufacturing sector engaged 2.37 million persons in December 2023, an increase of 1.7% compared to the 2.34 million persons registered in December 2022. The increment was largely contributed by the food, beverages and tobacco (5.9%); non-metallic mineral products, basic metal and fabricated metal products (2.3%); and wood, furniture, paper products and printing sub-sectors (2.2%). “As compared to the preceding month, the number of employees in this sector declined marginally by 0.1%,” he said. In tandem with the addition of the number of employees, Mohd Uzir said salaries and wages paid in the manufacturing sector also posted an increase of 2.1% y-o-y, amounting to RM8.7 billion, in December 2023. As compared to November 2023, the salaries and wages paid grew by 7.3%, as against the slight growth of 0.04% registered in the preceding month. Furthermore, sales value per employee decreased by 5.8% to record RM63,121, while average salaries and wages per employee in December 2023 stood at RM3,683, which rose by 0.5% y-o-y. Manufacturing sales value down 4.2% y-o-y to RM149.9 bil in Dec 2023, says DOSM BY CHOY NYEN YIAU theedgemalaysia.com BY SYAFIQAH SALIM theedgemalaysia.com Source: Department of Statistics Malaysia (DOSM) Monthly sales value of the manufacturing sector 156.7 155.0 149.9 8.8 6.5 10.3 8.0 -2.0 3.3 -4.0 -3.0 -3.3 -2.4 -1.4 -2.6 -4.2 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 -80.0 -40.0 0.0 40.0 80.0 120.0 160.0 Dec 2022 Jan 2023 Feb Mar Apr May June July Aug Sept Oct Nov Dec RM billion Growth (%) Sales value of manufacturing sector % Change year-on-year Read the full story
THURSDAY FEBRUARY 8, 2024 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): The Malaysian Takaful Association (MTA) is committed to addressing financial protection for uninsured and underinsured groups in Malaysia through takaful products, and to expanding the takaful industry’s penetration rate to 40% by 2028. MTA chief executive officer Mohd Radzuan Mohamed said about 46% of Malaysians do not have any personal financial protection, which is concerning. The MTA wants to fill the unmet needs of this portion of the population, he said. “Most of them (underinsured groups) are either from B40 (the bottom 40% household income group) or M40 (middle 40%). We feel that takaful has a very good proposition for these [groups],” Mohd Radzuan told a press conference on Wednesday in conjunction with the launch of the MTA’s interim report on the Takaful Financial Sector Blueprint (FSB) programme 2023. Mohd Radzuan noted that the combined penetration rate of conventional insurance and takaful in Malaysia stood at 54% in 2022, with conventional insurance taking up 34% and the remaining 20% from the takaful segment. With growing demand for takaful products as well as the MTA’s Hijrah 2027 Strategic Plan, he projected that the takaful penetration rate could reach 40% within four years. According to Mohd Radzuan, Bank Negara Malaysia (BNM) had targeted a combined penetration rate of at least 75% for conventional insurance and takaful by 2020, but both segments missed the target. However, he believes that the takaful industry can reach the 40% penetration target within four years from now, supported by the MTA’s Hijrah 2027 plan and the Takaful FSB programme. The Takaful FSB programme, which addresses the long-standing challenges and enhances the takaful industry’s growth, aims to “harmonise” BNM’s FSB 2022-2026 targets and the value-based intermediation for takaful (VBIT) road map. MTA eyes underinsured groups, targets 40% takaful industry penetration rate by 2028 KUALA LUMPUR (Feb 7): Despite recording lower sales for the financial year ended Dec 31, 2023 (FY2023), Carlsberg Brewery Malaysia Bhd’s full-year net profit was up 5.11% to a record high of RM333.24 million against RM317.05 million a year ago, mainly in the absence of the RM21.6 million prosperity tax incurred last year. Looking ahead, the brewer expects a 2% increase in the sales and service tax (SST) to increase costs when it comes into effect later this year. According to the group’s bourse filing on Wednesday, its bottom line was also boosted by the higher share of profit in associate Lion Brewery (Ceylon) PLC as well as recognition of RM11.3 million in deferred tax income relating to investment allowance of its new bottling line installed last year. Carlsberg’s revenue however declined 6.28% to RM2.26 billion compared with RM2.41 billion in FY2022, dragged by lower sales on the back of softer market sentiment and inflationary pressures. The group has recommended a final dividend of 31 sen per share subject to shareholders’ approval at its upcoming 54th annual general meeting. “Upon approval, this will bring total declared dividend for FY2023 to 93 sen,” it said in a separate statement. A dividend payout of 93 sen per share would be the group’s highest yearly payout since FY2019, eclipsing the 88 sen paid in FY2022. Carlsberg’s FY2023 profit hits record high on absence of oneoff prosperity tax, recommends 31 sen final dividend BY IZZUL IKRAM & JUSTIN LIM theedgemalaysia.com BY ANIS HAZIM theedgemalaysia.com “The interim report delves deep into the significant achievements of takaful operators, examining key project milestones and intended outcomes against the backdrop of VBIT and its maturity continuum,” the MTA said. The VBIT framework was issued by the takaful industry in 2021, followed by the VBIT road map in 2022. “The interim report goes beyond highlighting achievements, offering insights into the programme’s future impact. It emphasises how the Takaful FSB programme, through VBIT principles, aims to create a sustainable, stable and inclusive takaful industry. This, in turn, benefits takaful operators, participants, and the Malaysian economy as a whole,” the MTA said. The programme is currently in the implementation phase, and progress is being made in all strategic thrusts through the 11 working groups that oversee various aspects of financial inclusion, economic resilience, digitalisation, sustainability and climate resilience, and Islamic finance leadership. “The Takaful FSB programme will continue to be instrumental in driving the takaful industry forward, and will continue to do so. By acknowledging these key metrics, the takaful industry can identify areas where it is making progress, and areas where improvement is needed,” added Mohd Radzuan. Quarterly, Carlsberg’s net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023) rose 39.75% to RM84.02 million from RM60.12 million a year ago, on the absence of the one-off loss recorded from the disposal of its old bottling line and prosperity tax, as well as recognition of deferred tax income. CONTINUES ON PAGE 8 Source: Bursa Malaysia Carlsberg’s net profit rises to record high in FY2023 *Financial year ends on Dec 31 100 200 300 400 1 2 3 Net profit (RM mil) Revenue (RM bil) FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 277.15 291.02 162.18 200.99 317.05 333.24 1.79 1.98 2.26 1.77 2.41 2.26
THURSDAY FEBRUARY 8, 2024 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): Reneuco Bhd, whose deadline to submit its latest annual report is Thursday (Feb 8), has set its annual general meeting (AGM), a virtual one, on March 27. Among the resolutions to be passed in the AGM include to re-elect four directors, namely executive director Sarah Azreen Abdul Samat; as well as independent directors Tunku Datuk Nooruddin Tunku Shahabuddin, Tan Yee Hou and Datuk Dr Md Khir Abdul Rahman. Its executive chairman Datuk Mustakim Mat Nun does not need to seek re-election as his tenure ends next year. All company directors are required to retire from office once in every three years, according to Reneuco’s company resolution. Mustakim, who is the company’s largest shareholder, was reappointed together with Tan on Dec 14. Aside from the five aforementioned individuals, the remaining two board members are independent directors Ahmad Riza Mohd Saian and Datuk Dr Muhammad Mahadi Mohamad — both of whom were reappointed on Dec 7, 2022. Mustakim holds a 3.46% direct and 21.65% indirect stake in Reneuco, with the deemed interest held largely through OHP Ventures Sdn Bhd. Another substantial shareholder, E&E Catalyst Sdn Bhd, holds a 7.61% direct stake in Reneuco. Other resolutions to be tabled at the virtual AGM include to approve directors’ fees of up to RM894,600; and directors’ benefits of up to RM330,600. Reneuco has been in the spotlight after regulators warned the company that its shares will be suspended if it misses its Thursday deadline to furnish its annual report for that financial period. The group had already missed its initial Jan 31 deadline for the submission, but it was given another five market days until Thursday to do so, to avoid the trading suspension. Ahead of the deadline, shares of Reneuco fell three sen in active trading to close at five sen on Wednesday, after falling by as much as 4.5 sen earlier. It was the most active counter on Bursa Malaysia with 236.13 million shares traded, representing 21.05% of its issued share base of 1.12 billion shares, and 9.4 times its two-month average volume of 24.96 million shares. Reneuco to hold AGM on March 27 as deadline for submission of annual report nears KUALA LUMPUR (Feb 7): Kuala Lumpur City Hall (DBKL) has expanded the scope of ITMAX System Bhd’s contract to install and maintain the networked street lighting systems in Kuala Lumpur by RM47.2 million. ITMAX said DBKL has awarded the company a variation order (VO) for the job to include the replacement of broken light-emitting diode (LED) street lights with an expired warranty in the city. “In addition to its responsibilities under the existing networked lighting systems contract with DBKL, ITMAX, under this VO, is required to upgrade the LED street lights including replacing the defective and out-of-warranty LED street lights,” the public space networked systems provider said in a statement on Wednesday. ITMAX said the VO is expected to contribute positively towards the earnings of the company until the expiry of the VO. In April last year, DBKL awarded ITMAX with a three-year contract extension for the networked street lighting system job worth RM52.81 million. The extension spans from Aug 1, 2023, to July 31, 2026. It is understood that the VO also falls under this contract period. The company was initially awarded a five-year contract for the street light works in July 2016, which was subsequently given a two-year extension in Aug 2021. Shares in ITMAX closed unchanged at RM1.99, valuing the company at RM2.05 billion. DBKL expands scope of KL street lighting job for ITMAX by RM47.2 mil BY IZZUL IKRAM theedgemalaysia.com BY ADAM AZIZ theedgemalaysia.com Read the full story FROM PAGE 7 Likewise, the rise in quarterly earnings came despite a 5.26% slip in revenue to RM580.53 million versus RM612.75 million previously, amid lower sales in both Malaysia and Singapore. A 19.9% increase in share of profits from Lion Brewery to RM7.79 million versus RM6.5 million a year ago also contributed to the increase in quarterly net profit. Impending SST hike to weigh on costs On FY2024, Carlsberg noted that this year’s Chinese New Year season has commenced on a positive note with market activations behind its limited edition festive can in full swing. “Looking ahead, the group remains mindful of the uncertain economic outlook but is hopeful of an economic recovery,” it added. Delving on recent economic developments, Carlsberg chief financial officer Vivian Gun expects an increase in SST to drive up costs when it comes into effect later this year. In Budget 2024, the government proposed raising the SST to 8% from 6% currently, but exempted food and beverages and telecommunications services. Putrajaya projected a RM3 billion increase in revenue from the higher tax rate. “The increase in SST will impact us on areas that are subject to SST, but the full quantum of the impact we cannot disclose yet because there are grey areas and we are waiting for the authority to firm up the guidance. However, it would have an impact on our overall cost, especially in the area of logistics costs,” Gun said at the brewer’s result briefing. Apart from the impact of SST, Carlsberg managing director Stefano Clini is mindful of uncertainty in the economic landscape, encompassing high interest rates, continued inflationary pressures and currency fluctuations, that may snag economic growth and consumer sentiment, which may in turn give rise to volatility in group earnings in FY2024. Given these challenges, Clini said the brewer’s strategy is to increase investment in brands to grow its top line and market share. The group has allocated RM92 million to build a new canning line and beer filtration plant for higher production flexibility, and lower energy and water consumption. The construction of a new canning line and beer filtration plant is targeted to be completed by the end of this year. Shares of Carlsberg closed up six sen or 0.31% at RM19.44, giving the group a market capitalisation of RM5.94 billion.
THURSDAY FEBRUARY 8, 2024 9 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): An arbitral tribunal has awarded a unit of FGV Holdings Bhd RM12.64 million in the plantation group’s contract dispute with construction company Multazam Development Sdn Bhd concerning the latter’s termination from an estate workers housing project. In the final award of the arbitration proceedings brought by Multazam against FGV’s wholly owned unit FGV Plantations (M) Sdn Bhd over its termination from the contract, an Asian International Arbitration Centre (AIAC) tribunal ruled for Multazam to pay FGV Plantations RM12.52 million — being the additional costs to complete Multazam’s works in respect of the project as well as FGV Plantations’ loss of profit. Additionally, Multazam is to pay FGV Plantations RM294,000 in “nett costs”. On the other hand, the tribunal ruled for FGV Plantations to pay RM86,341.45 — value of unpaid completed works minus liquidated and ascertained damages. Meanwhile, the costs of the award amounting to RM418,935.17 are to be split between Multazam and FGV Plantations on an 80:20 basis, or RM335,148.14 and RM83,787.03 to be paid by the respective parties. All in all, FGV Plantations is expected to gain RM12.64 million from the tribunal’s final award. “The final award has no operational or financial implications for the respondent, and if the amounts awarded to the respondent (FGV Plantations) thereunder are recovered from the claimant (Multazam), such amounts received may be expected to contribute positively to [FGV Plantations’] earnings,” FGV noted in a bourse filing on Wednesday. To recap, FGV Plantations (then known as Felda Global Ventures Plantations (M) Sdn Bhd) terminated the appointment of Multazam as the designand-build contractor for an estate workers housing project back in September 2018, due to “various defaults and breaches of the contract” by Multazam. Thereafter, Multazam initiated arbitration proceedings against FGV Plantations in April 2019 disputing the termination. In the proceedings, Multazam claimed for declarations from the AIAC that the construction firm is entitled to an extension of time to complete the works, damages for unlawful termination, payment of value of completed works, release of its RM3.75 million performance bond, and that FGV Plantations is not entitled to impose any liquidated and ascertained damages against it. Shares in FGV ended one sen or 0.69% lower at RM1.43 on Wednesday, valuing the group at RM5.22 billion. FGV unit wins RM12.6 mil in estate workers housing project dispute with contractor KUALA LUMPUR (Feb 7): YTL Hospitality REIT (YTL REIT) is acquiring Syeun Hotel in Ipoh, Perak, for RM55 million cash, as it looks to continuously acquire and invest in high-quality hospitality properties in Malaysia and internationally, with a view to providing long-term and sustainable income distribution to unitholders and achieving long-term growth in net asset value per unit. Maybank Trustees Bhd, as the trustee for the REIT, entered into a sale and purchase agreement with the vendor, Syeun Hotel Bhd, to acquire the property. This was announced by Pintar Projek Sdn Bhd, the manager of YTL REIT, in a bourse filing on Wednesday. Pintar Projek said the property will be renovated and proposed to reopen under the AC Hotels by Marriott brand, which the board believes will create value for YTL REIT. The property will then be leased under a variable rental arrangement, where YTL REIT will participate in the income to be generated from the property. “In view of the strategic location and YTL Hospitality REIT acquires Syeun Hotel in Ipoh for RM55 mil cash Ranhill achieves commercial operation date for 50MW LSS4 BY EMIR ZAINUL theedgemalaysia.com BY ADAM AZIZ theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com KUALA LUMPUR (Feb 7): Ranhill Utilities Bhd said it has on Wednesday achieved commercial operation date (COD) of its 50MW large scale solar project under the 2021 awards (LSS4). This marks Ranhill’s first venture into LSS ownership, being part of its pursuit into renewable energy, the group said. The project will operate under a 25- year concession period, it said. “The project will mitigate 2,135,880.25 tons of CO2 emissions throughout its 25-year concession, contributing significantly to environmental sustainability. Ranhill is committed to pioneering sustainability by harnessing clean energy, reducing carbon footprint, and contributing to a greener, more sustainable future,” it said in its filing. Ranhill joins several others who have similarly completed their LSS4 commissioning including Solarvest Holdings Bhd, Tenaga Nasional Bhd, JAKS Resources Bhd and MK Land Holdings Bhd, to name a few. A total of 823MW of LSS4 capacity was awarded in 2021. The scheduled commercial operation date was set at end-2023, according to guidelines on the project. accessibility of the property, the board believes that prospects for the property are positive, and it is expected to provide a growing income stream from the lease of the property under a variable rental arrangement, and enhance the financial performance of YTL REIT and its subsidiaries,” Pintar Projek said. Barring any unforeseen circumstances, the proposed acquisition is expected to be completed during the first half of 2024. YTL REIT boasts a total of 10 hotel properties in Malaysia, including hotel chains such as JW Marriott Hotel Kuala Lumpur, The Majestic Hotel Kuala Lumpur and The Ritz Carlton Hotel Kuala Lumpur. At Wednesday’s market close, YTL REIT units settled unchanged at RM1.17, giving the REIT a market capitalisation of RM1.99 billion.
THURSDAY FEBRUARY 8, 2024 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): Econpile Holdings Bhd has secured a RM30 million contract to undertake substructure works for a 15-storey office building in Shah Alam. In a filing with Bursa Malaysia on Wednesday, the construction company said the contract, awarded by Chingsan Development Sdn Bhd, is expected to contribute positively to its revenue and earnings from the financial year ending June 30, 2024 onwards. It added that the scope of work includes site clearing, earthworks, substructure and structure works for a five-storey basement car park. “The project is scheduled for completion within 16 months from Feb 24, 2024,” Econpile said. Shares in Econpile closed unchanged at 34 sen on Wednesday, resulting in a market capitalisation of RM481.95 million. Econpile bags contract for RM30 mil substructure works in Shah Alam KUALA LUMPUR (Feb 7): Teo Seng Capital Bhd’s wholly owned subsidiary Ritma Prestasi Sdn Bhd has entered into a joint venture (JV) cum shareholders agreement with Shanghai Xiashu Intelligent Technology Co Ltd to set up a JV company in Malaysia, namely Trendata Science Sdn Bhd. Trendata Science would provide services, sales, research and development of poultry farming-related intelligent machinery, equipment and robots in Southeast Asia, Teo Seng said in a filing with Bursa Malaysia on Wednesday. “Trendata Science will be incorporated in Malaysia as a private limited company under the Companies Act 2016, with a total issued share capital of RM10,000 comprising 10,000 ordinary shares,” Teo Seng added. The board of Teo Seng views the JV as in the best interest of the company, and that the terms and conditions of the agreement are fair, reasonable and not detrimental to the minority shareholders. “The agreement will not have any maTeo Seng Capital inks agreement with Shanghaibased firm for poultry farming tech JV in M’sia LFE’s wholly owned subsidiary secures RM11 mil earthworks contract from PDSB PLB Engineering to sell vacant land in Penang to improve cash flow terial effect on the net assets, earnings, gearing, shareholding structure and substantial shareholders’ shareholdings in the company for the financial year ending Dec 31, 2024,” Teo Seng added. Under the agreement, Ritma Prestasi will hold a 65% stake in the JV company, while Shanghai Xiashu will own the remaining 35%. According to Teo Seng, Shanghai Xiashu is mainly involved in the business of research and application of artificial intelligence and its related applications, such as designing and manufacturing intelligent equipment, big data science and its applications. Teo Seng shares closed up four sen or 2.05% at RM1.99, with 1.7 million shares traded. The company’s market capitalisation stood at RM579.02 million. The counter had risen 24.38% year-to-date and 161.84% over the past year. BY LUQMAN AMIN theedgemalaysia.com BY CHERYL TAN theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com KUALA LUMPUR (Feb 7): LFE Corp Bhd has secured a RM10.97 million contract from Puncakcity Development Sdn Bhd (PDSB) for earthworks and related works. In a statement on Wednesday, LFE detailed that its wholly owned subsidiary, LFE Engineering Bhd, has been appointed as the contractor for the project. The contract, effective immediately, is slated for an eight- month duration with a completion date set for Oct 6, 2024 “This contract is projected to enhance LFE Group's earnings and net assets per share for the financial year ending Dec 31, 2024, and continuing until the contract completion,” the firm said. LFE’s market capitalisation stood at RM210.64 million. KUALA LUMPUR (Feb 7): PLB Engineering Bhd has entered into a deal to sell a vacant piece of land in Bandar Tanjung Bungah, Penang, measuring 1,922 square metres, for RM11.5 million. The disposal of the freehold land to Victorious Triumphant Sdn Bhd provides an avenue for the group to monetise the value of its land bank while at the same time improve its cash flow, said PLB Engineering in a filing with Bursa Malaysia on Wednesday. The group said it bought the land in 2009 for RM5.49 million. As at Aug 31, 2023, the audited net book value of the land stood at RM8.45 million. As such, the disposal is expected to result in a gain of about RM1.49 million. PLB Engineering said the net proceeds will be utilised for repayment of bank borrowings worth up to RM8.05 million, and as working capital for the group. The group, which expects the disposal to be completed by July 6, 2024, said the net proceeds are expected to be fully utilised within two months from the completion date. According to the group, Victorious Triumphant is owned by Goh Poh Choo, while its sole director is Chuah Chong Ewe. Chuah is the executive chairman of LFE Corp Bhd, and managing director of Luster Industries Bhd. PLB Engineering shares closed three sen or 2.78% lower at RM1.05 on Wednesday, giving the group a market capitalisation of RM118 million.
THURSDAY FEBRUARY 8, 2024 11 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): MNRB Holdings Bhd’s net profit for its third quarter ended Dec 31, 2023 (3QFY2024) surged 47.36% to RM84.61 million or 10.8 sen per share, from RM57.42 million or 7.33 sen per share a year ago (3QFY2023), driven by higher revenue from its insurance and takaful segment. Quarterly revenue rose 22.05% to RM980.87 million from RM803.69 million a year ago, mainly contributed by higher investment income and favourable fair value movement of investments. The group did not declare any dividend for the quarter. For the nine months ended Dec 31, 2023 (9MFY2024), net profit soared 310.29% to RM195.72 million or 24.99 sen per share from RM47.7 million or 6.09 sen per share in the same period last year. According to MNRB, the strong performance was attributed to the group’s improved underwriting results of its reinsurance, retakaful and general takaful businesses as well as higher investment income and net fair value gains compared to net fair value losses recorded in 9MFY2023. As at 9MFY2024, the group’s reinsurance and retakaful business recorded a commendable net profit of RM155.8 million against RM34.7 million recorded in the same period last year. MNRB’s family takaful arm, Takaful Ikhlas Family Bhd, saw its net profit rise to RM10.7 million in 9MFY2024 compared with RM1.3 million in the same period last year. Meanwhile the group’s general takaful arm, Takaful Ikhlas General Bhd, posted significant growth of 84.7% in net profit to RM41 million from RM22.2 million, mainly contributed by higher wakalah fee as a result of strong takaful revenue. Cumulative operating revenue for 9MFY2024 increased 19.37% to RM2.79 billion from RM2.33 billion in the same period a year ago, also driven by robust growth of its reinsurance and general takaful businesses as well as improvements in its investment income. The insurance and takaful revenue increased 23.1% to RM1.6 billion from RM1.3 billion, due to the healthy growth of its specialty, domestic treaties and overseas treaties business portfolios. MNRB president-cum-group chief executive officer Zaharudin Daud said the group has managed to maintain its earnings momentum for the quarter amid embracing growth opportunities, enhancing operational efficiency as well as driving innovation to strengthen its offerings, and delivering long-term value creation to all its stakeholders. Moving forward, Zaharudin said, “The group is optimistic that the firm foundation of our business diversification, coupled with the effective implementation of our strategic plan, will propel the group to close the financial year strongly. “We are in a position to meet the growth trajectory outlined in our business plan and deliver long-term value to our customers and partners.” Zaharudin added. MNRB shares closed up two sen or 1.43% at RM1.42 on Wednesday, with 576,900 shares traded. Its market capitalisation stood at RM1.11 billion. The stock has risen by 16.39% year to date and 55.19% over the past year. MNRB Holdings posts 47% jump in 3Q net profit on higher insurance and takaful revenue KUALA LUMPUR (Feb 7): KLCCP Stapled Group’s net profit rose 37.6% to RM384.59 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), from RM279.47 million a year ago, primarily contributed by improvement in the hotel and retail segments, while the office segment remained stable. The group — comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust — saw quarterly revenue grow 7.1% to RM442.63 million from RM413.26 million, it showed in a bourse filing on Wednesday. It declared a dividend of 14.4 sen per stapled security for the quarter, bringing the total declared dividend for the year to 40.5 sen — the highest since its listing as a stapled security in 2013, according to the group. Mandarin Oriental, Kuala Lumpur, which represents the hotel segment, recorded a remarkable increase in revenue of 32.8% year-on-year to RM65.2 million and a profit before tax (PBT) of RM6.2 million. This was attributed to higher occupancy of 62%, from 56% in 4QFY2022, and a 27% surge in revenue per available room, driven by group stays and banqueting events, marking in October 2023 the highest revenue for the hotel since its opening. The retail segment, represented by Suria KLCC and the retail podium of Menara 3 Petronas, delivered a 9.3% increase in revenue to RM137.1 million and a 7.4% increase in PBT to RM104 million, mainly driven by improvement in occupancy and footfall. It was noted that Suria KLCC welcomed 10 new tenants during the quarter. Meanwhile, the office segment, comprising the Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil, remained stable, backed by the triple net leases and long-term leases. KLCCP Stapled Group posts 38% jump in 4Q profit, declares highest yearly dividend since listing in 2013 For FY2023, KLCCP’s net profit climbed 18.9% to RM931.29 million from RM782.66 million for the previous year, as revenue rose 10.9% to RM1.62 billion from RM1.46 billion. During the latest quarter, the group also recognised fair value gain of RM221.9 million arising from overall improvement in the market value of its investment properties, which contributed to the bottom line for the year. On its prospects for 2024, the group is optimistic that the growth trend will remain positive, as it looks to continue to leverage its assets, long-term and triple net lease arrangements, underpinned by the solid footing of the retail and hospitality segments. “We are optimistic that the upswing will continue, particularly in the retail and hotel segments. Our customer-focused strategy, together with growth in tourism and Mice (meeting, incentive, conference and exhibition) activities, will strategically position us to synergise efforts, and enhance our competitive advantage towards future business sustainability”, said Datuk Md Shah Mahmood, KLCCP’s chief executive officer, in a separate statement. KLCCP rose one sen, or 0.14%, to close at RM7.31 on Wednesday, with a market capitalisation of RM13.2 billion. BY EMIR ZAINUL theedgemalaysia.com BY LUQMAN AMIN theedgemalaysia.com
THURSDAY FEBRUARY 8, 2024 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): British American Tobacco (Malaysia) Bhd’s (BAT Malaysia) earnings outlook remains challenging due to the growing prevalence of vaping, which is expected to persistently erode the group’s combustible cigarette segment which anchors the group’s sales, according to Hong Leong Investment Bank (HLIB) Research. In a note on Wednesday, HLIB maintains its “hold” call on BAT Malaysia with an unchanged target price of RM9.22 based on an unchanged discounted cash flow valuation methodology. The research house said that despite the passage of the Control of Smoking Products for Public Health Bill 2023, which omitted generational endgame provisions and somewhat mitigated the long-term risk of a shrinking customer base, BAT Malaysia continues to face challenges from the rising popularity of vaping that could undermine cigarette sales. HLIB said that unlike the traditional cigarette market — limited to BAT Malaysia, JT International Bhd, and Philip Morris (Malaysia) Bhd — the vape market is highly fragmented with numerous vape brands entering the market, listing in convenience stores, and being sold through vape outlets. “The expansion of the vape market at the expense of traditional cigarette market share has led to the dispersion of sales among multiple vape brand owners, thereby putting pressure on BAT Malaysia’s sales performance. “Given the lack of robust earnings streams from new segments to fill the void left by the combustible cigarette segment, we opine that BAT Malaysia’s earnings outlook remains challenging,” it said. BAT Malaysia reported a lower net profit of RM47.36 million in the fourth quarter ended Dec 31, 2023 (4QFY2023), down 23.27% from RM61.72 million a year ago, as the group made significant investments in launching vape products, resulting in higher operating expenses. For the financial year 2023 (FY2023) overall, BAT Malaysia’s net profit fell by 25.82% to RM194.75 million from RM262.52 million in FY2022, with revenue decreasing by 11% year-on-year (y-o-y) to RM2.3 billion from RM2.6 billion. HLIB said BAT Malaysia’s core profit after tax for FY2023 stood at RM193.1 million, showing a 31.5% y-o-y decline, meeting its expectations but falling below consensus forecasts. Notably, despite a 1% decline in illicit market share, legal combustible volume for FY2023 experienced a decline as the returned volume shifted towards the e-cigarette category. “We anticipate this trend to persist, potentially limiting BAT Malaysia’s combustible cigarette sales rebound if the illicit market share, currently at 55.6%, regains traction,” it said. At 10.20am, shares in BAT Malaysia traded nine sen or 0.99% lower at RM8.99, giving the group a market capitalisation of RM2.56 billion. The counter saw about 464,600 shares change hands. More from brokers: Hartalega’s 9MFY2024 earnings below analysts’ expectations on lower-thanexpected sales volume RHB IB sees 4Q2023F earnings falling for Malaysian, Indonesian planters BAT Malaysia’s outlook remains challenging as vaping surges, says HLIB Research KUALA LUMPUR (Feb 7): MIDF Research has upgraded its rating on Affin Bank Bhd from ‘sell’ to ‘neutral’ and raised the target price to RM2.24 from RM1.71 in view that the Sarawak state government may be looking at being its largest shareholder. The revision is despite the research house pointing to still weak fundamentals in the bank, albeit it could see some minor benefits as a result of the looming emergence of the new substantial shareholder. In a note on Wednesday, MIDF highlighted the potential for Affin Bank to leverage increased Investment Banking (IB) opportunities and fortify its presence in SME and corporate segments, aligning with its shift away from lower-yielding consumer loan segments due to the Sarawak state government’s strategic move. “Affin Bank’s Net Interest Margin (NIM) has recently underperformed due to a combination of high lower-yielding loan growth and increased competition in deposit rates. “As a result, Affin will be slowing down its loan growth, focusing on higher-yielding business loans instead of lower-yielding consumer loan segments, particularly residential mortgages, to preserve NIM,” it stated. MIDF also suggested that Affin Bank MIDF upgrades Affin Bank to ‘neutral’, with higher TP of RM2.24 could potentially benefit from new shareholders, particularly from the Sarawak state government, by offering support to SME and corporate segments. Additionally, MIDF identifies opportunities for Affin to strengthen its consumer portfolio through strategies such as branch expansion and targeting business owners and the underbanked. While acknowledging positive aspects, MIDF stated that Affin’s current valuations are deemed unattractive due to its lower Return on Equity (ROE) potential. The bank is currently trading at a 0.52x price-to-book value (P/BV) ratio, well above its 5-year historical average of 0.34x P/BV. “We opine that this is expensive, well above the 0.4-0.45x P/BV range which we believe that it should be trading at, given that its ROE range will likely remain in the 4%-5% range in the near future,” it remarked. MIDF also urged caution, emphasizing that the benefits of a new shareholder might take time to materialize, and Affin Bank’s current valuation is considered high in light of the challenges it faces. Read the full story BY CHOY NYEN YIAU theedgemalaysia.com BY CHOY NYEN YIAU theedgemalaysia.com
THURSDAY FEBRUARY 8, 2024 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): LEAP Market-listed Steel Hawk Bhd has secured a contract extension from E&P O&M Services Sdn Bhd (EPOMS) for the provision of scaffolding services for EPOMS’ operations in Peninsular Malaysia. In a bourse filing on Wednesday, the group said the contract had been extended for another year to Feb 9, 2025. The contract was initially awarded in February 2022 for a contract period of two years with a one-year extension option. EPOMS is a wholly owned subsidiary of Petronas Carigali Sdn Bhd. “For clarification, the contract is on a call-out basis (which does not have a fixed contract value), and we are engaged by EPOMS to provide specified services Steel Hawk secures contract extension from Petronas Carigali unit for scaffolding services KUALA LUMPUR (Feb 7): After a robust debut on the ACE Market with a premium of 17% at 41 sen, freight forwarding and aerospace logistics provider AGX Group Bhd succumbed to selling pressure which saw its share price gains pared down to just one sen, or 2.86% from its initial public offering (IPO) price of 35 sen. AGX ended at 36 sen per share on its maiden trading day on Bursa Malaysia. The counter emerged among the most active stocks on Wednesday with 55.4 million shares traded. At 36 sen per share, AGX is valued at RM155.83 million based on a share capital of 432.87 million units. At its current price, AGX is valued at about 11.5 times its price-earnings ratio based on a net profit of RM13.54 million and basic earnings per share of 3.13 sen for FY2022. AGX has adopted a dividend policy of at least 30% of its annual profits attributable to shareholders. For the nine months ended Sept 30, 2023 (9MFY2023), the company reported a net profit of RM9.16 million on the back of RM138.16 million revenue. Prior to its market debut, the company saw an oversubscription of 15.43 times for its IPO and successfully raised RM33.78 million in proceeds at 35 sen per share. Sharing the company’s expansion plans, AGX Singapore executive director Mark Penu said the company will set up a new warehouse and office in Port of Tanjung Pelepas (PTP), Johor to complement its operations in Singapore. He pointed out that the forex differentials between the Singapore dollar and the Malaysian ringgit will help contribute to the company’s profitability, as it sells in Singapore dollars and captures its costs in ringgit. “In Singapore, the rent for a warehouse is about S$2 [RM7.05] per square foot. In PTP, it is about RM2 per square foot. A worker costs around S$2,000 in Singapore but RM2,000 in PTP. So, this will allow us to offer more competitive pricing to our customers from Singapore,” he told reporters during a press conference after the listing ceremony. The company also plans to set up an office in Penang to improve its coverage in the northern region of Malaysia, as well as one in Busan, South Korea to support its sea freight business division. Meanwhile, AGX expressed its interest in expanding its presence to Indonesia, Thailand and Vietnam, aiming to become one of the largest industry players in the Southeast Asian region. “We are already in five out of eight big Asean markets, namely Singapore, Malaysia, the Philippines, Myanmar and Cambodia. Indonesia, Thailand and Vietnam are countries with large populations, so we cannot afford to ignore them. Even though we do not have immediate future plans, we certainly have our eyes on them,” said Penu. Furthermore, AGX reiterated its commitment to focusing on the aerospace segment, which accounted for 37% of its revenue base. “[The industry] has got high entry barriers. It is a growing industry as more people in Southeast Asia aspire to travel. More planes flying around means more MRO [maintenance, repair and operations], so we are well-positioned for this. What we have always required is additional working capital, and the listing status will help,” he added. TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for this listing exercise. AGX pares gains after robust debut on ACE Market BY HEE EN QI theedgemalaysia.com BY EMIR ZAINUL theedgemalaysia.com AGX Group Bhd 0 5 10 15 20 9am 5pm Feb 7, 2024 25 30 35 40 45 Vol (mil) Sen 36 sen 41 sen IPO price: 35 sen *As at market close on Feb 7, 2024. Source: Bloomberg In December 2023, Steel Hawk also received a one-year contract extension from Petronas Carigali for the provision of onshore facilities maintenance, construction and modification services. It is worth noting that Steel Hawk had recently appointed Tengku Saifan Rafhan Tengku Putra, a member of the Selangor royal family, as an independent and non-executive director, and former inspector general of police Tan Sri Acryl Sani Abdullah Sani as its independent and non-executive chairman. Shares in Steel Hawk, which is seeking to transfer its listing to the ACE Market, were last traded at 28 sen on May 10, giving the company a market capitalisation of RM44.8 million. AGX Group Bhd Group CEO Datuk Ponnudorai Periasamy (fifth from left) and chairman Datuk Rozalila Abdul Rahman (fifth from right) during the company’s debut on the ACE Market on February 7, 2024. for the duration of the said contract, as and when such services are required,” said Steel Hawk. The group expects the contract to contribute positively to its earnings for the financial year ending Dec 31, 2024. THE EDGE PHOTO
THURSDAY FEBRUARY 8, 2024 14 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Feb 7): The Court of Appeal will decide on Thursday on the prosecution’s appeal against the acquittal of Samirah Muzaffar and two teenagers on a charge of murdering Cradle Fund chief executive officer Nazrin Hassan. The decision is scheduled to be delivered in an open court at 2pm by a three-member bench comprising Datuk Vazeer Alam Mydin Meera, Datuk Ahmad Zaidi Ibrahim, and Datuk Azhahari Kamal Ramli. The court will also deliver its verdict on the trio’s appeal to challenge certain findings of fact by the High Court, including the finding that the fire which broke out in Nazrin’s room was “done deliberately”. If the decision favours the prosecution, the case will be remitted to the High Court, and Samirah and the two teenagers must enter their defence. Otherwise, the trio’s acquittal will remain. On Oct 23 last year, a three-member panel deferred the decision after hearing submissions from both parties. Lawyer Tan Sri Muhammad Shafee Abdullah, representing Samirah and the two teenagers, completed his submissions on Oct 23 last year, while the prosecution led by deputy public prosecutor Datuk Yusaini Amer Abdul Karim completed their submissions on Oct 17. On June 21, 2022, the Shah Alam High Court freed Samirah, 49, who is also Nazrin’s widow, and the two teenagers, now 21 and 18, of murdering Court to decide on prosecution’s appeal on Thursday in Cradle Fund CEO murder case KUALA TERENGGANU (Feb 7): Clare Rewcastle-Brown, the founder and editor of Sarawak Report, was sentenced to two years in prison by the magistrate’s court on Wednesday after being found guilty of defamation against the Sultanah of Terengganu, Sultanah Nur Zahirah. Magistrate Nik Mohd Tarmizie Nik Mohd Shukri ordered the prison sentence against Rewcastle-Brown, 64, to start from the date of her conviction, which is Wednesday. He said after reviewing and evaluating the evidence, including the prosecution witness testimony and exhibits, and considering the arguments presented by the prosecution, the court concluded that a prima facie case had been successfully proven by the prosecution team. “As the trial was conducted in absentia, the court hereby finds Rewcastle-Brown guilty and convicted as charged under Section 500 of the Penal Code, which is a two-year prison sentence from the date of conviction. “A warrant of imprisonment will be issued for submission by the prosecution,” said Nik Mohd Tarmizie. According to the charges, Rewcastle-Brown, who has a London, United Kingdom address, wrote a book entitled ‘The Sarawak Report — The Inside Story of 1MDB Expose’ which contains accusations against the Sultanah of Terengganu. The defamatory part that was underlined on page three, paragraph four, and line seven was “the wife of the Sultan”, knowing it would damage the name of Sultanah Nur Zahirah. She was charged with committing the offence at 8am, Sept 14, 2018, at Lot 60048, Taman Chendering Utama here. Sarawak Report editor sentenced to two years’ jail for defaming Sultanah of Terengganu Bernama Bernama The charge was framed under Section 500 of the Penal Code which provides for a prison sentence of up to two years or a fine or both, upon conviction. State prosecution director, Engku Ahmad Rashidi Engku Abdillah, appeared for the prosecution, while the accused was absent. The trial was conducted in absentia as per Section 425A of the Criminal Procedure Code. On Sept 23, 2021, Rewcastle-Brown was charged at the Kuala Terengganu Magistrate’s Court in absentia, after which she applied to transfer the case to the Kuala Lumpur High Court. However, on June 21, 2023, Kuala Lumpur High Court Judge, K Muniandy dismissed the application. On Oct 31, 2023, the High Court dismissed Sultanah Nur Zahirah’s suit against Rewcastle-Brown, Gerakbudaya Enterprise, Chong Ton Sin (publisher) and Vinlin Press Sdn Bhd (printer). On Dec 12, 2023, the Court of Appeal ordered Rewcastle-Brown and two others to pay RM300,000 in damages to Sultanah Nur Zahirah, after a three-judge panel comprising Judges Datuk Hadhariah Syed Ismail, Mohamed Zaini Mazlan, and Datuk Azhahari Kamal Ramli overturned the High Court’s decision. Rewcastle-Brown, Chong, and Vinlin Press were also ordered to pay RM120,000 in costs to Sultanah Nur Zahirah. Nazrin after finding that the prosecution had failed to establish a prima facie case against the three of them at the end of its case. The three of them and an Indonesian woman, Eka Wahyu Lestari, who is still at large, were charged with killing Nazrin, 45, at his house in Mutiara Damansara between 11.30pm on June 13, 2018, and 4am the following day. On June 30, 2022, Samirah and the teenagers filed an appeal to challenge certain findings of fact by the High Court, including the finding that the fire which broke out in Nazrin’s room was “done deliberately”. Read also: Peter Anthony allowed to adduce further evidence in final appeal against forgery conviction Taib Mahmud being treated by doctor at home, says Abang Johari Clare RewcastleBrown
THURSDAY FEBRUARY 8, 2024 15 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Feb 7): The High Court has quashed an application by former 1Malaysia Development Bhd (1MDB) president and chief executive officer Arul Kanda Kandasamy to amend his defence in 1MDB’s US$6.59 billion (RM30.83 billion) lawsuit against him, as well as to file a counterclaim over the termination of his contract extension. The amendment of his defence was over the losses 1MDB suffered in its investment in 1MDB-Petrosaudi Ltd and its dealings with International Petroleum Investment Company (IPIC). During Zoom proceedings on Tuesday, High Court Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan had dismissed Arul Kanda’s application to amend his defence. 1MDB’s counsel Brendan Navin Siva told The Edge after proceedings that Arul Kanda’s counterclaim had also been dismissed by the court because the application to amend the defence was also dismissed. In his proposed amended defence and counterclaim sighted by The Edge, Arul Kanda, who was acquitted in the 1MDB audit tampering trial in March last year, is seeking close to RM57 million in aggravated, exemplary and general damages from 1MDB. Other than Arul Kanda, former Treasury secretary general Tan Sri Mohd Irwan Serigar Abdullah has also been named as a defendant in the US$6.59 billion suit that 1MDB filed. The former 1MDB top executive said the Malaysian government had, based on recent public statements, recovered more than its alleged losses of RM53.5 billion from 1MDB’s investments and transactions. “The defendant (Arul Kanda) states 1MDB has recovered a surplus of between RM1.4 billion and RM9.4 billion and hence it (1MDB) has no legal basis to pursue any further claim as it had recovered all of its alleged losses and pursuing a claim against him would amount to an abuse of process and unjust enrichment,” the document read. Arul Kanda also said in his amended defence that pursuant to a recent announcement by 1MDB and the Malaysian government, the dispute between 1MDB and IPIC and its subsidiary Aabar Investments PJS had been settled and hence there is no further legal basis for 1MDB to continue its claim against him. “1MDB is stopped from pursuing a claim against me for the alleged losses it incurred in relation to the IPIC/Aabar PJS transaction as 1MDB has compromised its claims against IPIC/Aabar PJS. Any claim by 1MDB against me would now amount to unjust enrichment and it would be an abuse of process for 1MDB to continue the claim when it has settled its dispute with IPIC/Aabar PJS,” he added. Counterclaim based on termination of employment from 1MDB Arul Kanda further claimed that around Feb 23, 2018, 1MDB had entered into an employment extension agreement with him, which was approved by 1MDB’s board of directors and Minister of Finance Inc — 1MDB’s sole shareholder. Among the conditions were to extend his employment to June 30, 2018, and to pay him an ex-gratia bonus of RM5 million — of which RM2.5 million remains unpaid. In addition, he said 1MDB did not pay his salary for the months of May and June. “The ex-gratia bonus payment paid to me was a result of my various achievements when employed by 1MDB that resulted in the reduction of its debt by approximately RM20 billion. BY TIMOTHY ACHARIAM theedgemalaysia.com Court quashes Arul Kanda’s bid to amend defence, file counterclaim in 1MDB’s US$6.59 bil suit against him “In addition, I was instrumental in ensuring [that 1MDB was] making payment of all interest and principal repayments on time; restarting the stalled TRX project; securing participation of third parties such as Prudential, HSBC and Lendlease for the TRX project; [and] recommencing and completing the stalled construction of eight air force bases in Malaysia,” he added. Besides that, Arul Kanda said he was the one who secured the RM9.83 billion sale of Edra’s equity and the 60% sale of Bandar Malaysia equity for RM7.41 billion. Following the change in political landscape in May 2018, Arul Kanda claimed that the then finance minister made a dishonest and untrustworthy allegation against him that was published in The Edge on May 24, 2018, and that this formed the backdrop to his termination which he claimed was a wrongful dismissal. “I further state that 1MDB did not give me adequate opportunity to address the alleged concerns of the former minister of finance and/or 1MDB prior to the termination of my Employment Extension Agreement. The finance minister and 1MDB have no legal basis to terminate my employment without any evidence of wrongdoing,” he added. Arul Kanda further claimed that the termination of his employment agreement was allegedly made to stop him from receiving his May and June salaries that amounted to RM202,600, and the balance ex-gratia payment of RM2.5 million. He also claimed that the alleged losses suffered by 1MDB had taken place prior to him joining 1MDB on Jan 5, 2015, and that a police report lodged subsequently had resulted in him being charged with the 1MDB audit tampering case, in which he said he was wrongly accused and had been recently acquitted. He said he had to undergo the criminal trial, which resulted in his passport being withheld, before the KL High Court acquitted him, with the appeal by the Attorney General’s Chambers dismissed by the Court of Appeal on Sept 12, 2023. Hence, he is seeking damages for the losses he suffered — including loss of salary and ex-gratia payment — and special damages of RM54 million for loss of income, along with general, aggravated and exemplary damages. THE EDGE FILE PHOTO
THURSDAY FEBRUARY 8, 2024 16 THEEDGE CEO MORNING BRIEF WORLD (Feb 7): DBS Group Holdings Ltd said its full-year results hit a record, though chief executive officer Piyush Gupta’s compensation took a hit due to last year’s digital banking disruptions. Net profit, excluding one-time items, rose 2% to S$2.39 billion (RM8.4 billion) in the three months ended Dec 31, Singapore’s biggest lender said in a statement Wednesday, amid signs of pressure on margins. This compares to the S$2.44 billion average estimate by analysts surveyed by Bloomberg News. DBS also proposed a bonus share issue and raised its final dividend. For 2023, the bank’s net profit already exceeded S$10 billion, a target it had set for itself for the medium term. It posted return on equity of 18%. DBS shares rose as much as 2.7%, the most in six weeks. Last year’s outages that saw payment and ATM transactions stalled across the citystate have resulted in the variable pay for DBS’ group management committee being collectively cut by 21% from a year earlier. This includes a deeper 30% reduction for Gupta, one of the highest paid executives in the country, amounting to S$4.1 million. DBS is the first of major Singapore banks reporting results, showing how its robust performance that has been propelled by elevated interest rates may have peaked as rates are expected to decline this year. Rivals United Overseas Bank Ltd and Oversea-Chinese Banking Corp will report results later this month. In November, the Monetary Authority of Singapore had banned DBS from acquiring new business ventures and reducing local branch and ATM networks for six months after a spate of digital banking service outages. The actions followed repeated and prolonged disruptions of DBS’ online banking services last year, prompting Gupta to apologise to customers and assure them the bank is addressing the issues “with utmost priority.” DBS said on Wednesday customers can expect greater service reliability, as well as alternative channels for payments and enquiries should issues happen. Under Gupta’s leadership since November 2009, DBS has expanded operations in India, Taiwan, and mainland China through acquisitions and organic growth. He has also beefed up the bank’s wealth management business, which is now one of the largest in Asia in terms of assets under management. Gupta said that even though interest rates are expected to soften and geopolitical tensions to persist, the bank should sustain its performance in the coming year. Read also: Singapore wealth fund shuffles leadership, names COO DBS cuts CEO’s pay by millions on digital banking outage (Feb 7): Singapore’s High Court has found Goh Jin Hian liable for US$146 million (RM695.7 million) in losses under his watch as director of a now-insolvent marine fuel supplying company, adding to the legal problems facing the son of former prime minister Goh Chok Tong. Doing his duties “would have led him to realise that the company was being defrauded,” judge Aedit Abdullah said in published remarks dated Jan 24 on a petition involving Inter-Pacific Petroleum Pte. The defence argued there was no such breach or causation of loss, and regardless, the company qualifies for relief from liability under the Companies Act. “The financial position of the company was suspect, and should have primed the defendant to look further and obtain a picture of the true state of the affairs of the company and monitor what was happening within it,” the judge said. “That was his duty as a director.” “Loss was caused to the plaintiff through the transactions and drawdowns which should not have been carried out and would Singapore ex-PM’s son found liable for millions lost by company News Asia reported. He was among four people charged last year with false trading offences linked to investment holding company New Silkroutes Group Ltd. They are accused of creating a “misleading appearance with respect to the price” of its securities on 31 trading days between February and August of 2018. That’s equivalent to market manipulation. BY PHILIP J HEIJMANS Bloomberg BY CHANYAPORN CHANJAROEN & NATALIE CHOY Bloomberg not have been had the defendant performed his duties,” the judge said. The development comes amid a number of scandals in the Asian financial hub known for its zero tolerance for corruption. A separate billion-dollar money laundering probe is already shining a light on fund flows from abroad and raising questions about loopholes that enabled an alleged criminal syndicate to accumulate massive amounts of wealth. Goh, 55, served as a director of Inter-Pacific Petroleum from 2011 to 2019, Channel Goh Jin Hian ALBERT CHUA/ THE EDGE SINGAPORE BLOOMBERG
thursday february 8, 2024 17 The E dge C E O m o rning brief world (Feb 7): Chinese companies are ramping up share buybacks, playing their part in a widening rescue campaign to stem a US$7 trillion (RM33.3 trillion) rout in the world’s second-biggest stock market. Firms listed in mainland China spent 14 billion yuan repurchasing shares last month while those in Hong Kong spent HK$21 billion doing the same, both marking a record since 2021 when Bloomberg began compiling the data. Share buybacks have historically been a regular feature in Beijing’s toolbox to prop up a slumping market, with authorities renewing the plea Tuesday for companies to do the same to help stabilise conditions. Despite the collective effort, the amount is usually too small to make any difference in a market that is still counting on heavier state intervention and bolder policy stimulus to turn the corner. “Company buybacks and national team buying are positive signals,” said Jian Shi Cortesi, a fund manager at GAM Investment Management, referring to state funds tasked to support markets. “Corporations know their businesses better than outside investors, and their record buybacks show that they see their business undervalued in the stock market.” WuXi AppTec Co and Will Semiconductor Co, whose shares have recently tanked on fears of US sanctions, led the wave of buybacks on the mainland bourses last month. In Hong Kong, tech behemoth Tencent Holdings Ltd and delivery giant Meituan were ahead of the pack. The fact that such self-rescue moves failed to stem the broader market’s rout last month, when the mainland benchmark CSI 300 Index lost 6.3%, goes to show the listed firms’ limited impact. China share buybacks climb to three-year high amid market slump BEIJING (Feb 7): China has replaced the head of its securities regulator, the official Xinhua news agency said on Wednesday, as policymakers struggle to stabilise the country’s main stock indexes after a plunge to five-year lows. The cabinet removed Yi Huiman as chairman of the China Securities Regulatory Commission (CSRC), replacing him with Wu Qing, a veteran securities regulator who had led the Shanghai Stock Exchange and served as a key deputy in Shanghai’s municipal government, Xinhua said. Yi’s removal comes as Chinese markets are on a knife edge as institutional and retail investors scramble to cut their losses, with the sputtering economy and a lack of forceful government stimulus measures weighing heavily on confidence. Numerous market-focused support moves such as restrictions on short-selling or reductions in trading duties have failed to staunch the selloff, as have a number of government statements promising support but lacking details. “As a knee-jerk reaction, I can see how this would be viewed as positive. But in addressing the well understood issues of the Chinese economy, it doesn’t address anything at all,” said Tim Graf, the head of EMEA macro strategy at State Street. The FTSE China A50 Index Futures SFCG4 edged up after the announcement, with a gain of 0.2% as of 1027 GMT. Hong Kong’s Hang Seng futures HSIc1 were little changed on Wednesday evening. Foreign investors sold a net 18.2 billion yuan (US$2.5 billion) in Chinese equities last month to notch a sixth straight month of outflows, and the central bank has been persistently supporting the yuan currency. China replaces head of securities regulator amid market turmoil by Antoni Slodkowski Reuters by Jeanny Yu Bloomberg World stocks went up 20% last year, gold rose 13% and bitcoin 155%. China’s blue-chip CSI300, fell 11% and collapsed to a five-year low in recent sessions. Fresh vows of support by state-linked buyers and a Bloomberg report that President Xi Jinping would meet market regulators drove a sharp rally on Wednesday, but the mood remains fragile and investors sceptical. Yi, a veteran of the Industrial and Commercial Bank of China — which he joined as a junior loan officer at a branch in Zhejiang in 1985 — was appointed to head the CSRC in January 2019. Chinese markets have been roiled by near constant turmoil since — first by a trade spat with Washington, then by the collapse of developer China Evergrande under debts emblematic of the crisis that has enveloped the real estate market. A series of regulatory crackdowns on sectors from technology to education has also tested investors’ patience and China’s underwhelming recovery from Covid-19 pushed them to outright flight. “The selloff is clearly the last straw for Yi — it’s not the first time China fired a CSRC chairman during a market rout. Thus change signals leaders’ willingness to turn the market around,” said Xu Tianchen, senior economist at the Economist Intelligence Unit (EIU). In 2015, a plunge in China’s stock market and a surprise devaluation of the yuan roiled global markets, and a botched stock market rescue attempt tarnished Beijing’s pledges of reforms and broad policy-making credentials. In early 2016, China removed Xiao Gang, then head of its securities regulator, appointing a top state banking executive as his replacement, as leaders sought to restore confidence in the economy. The selloff is clearly the last straw for Yi Huiman — it’s not the first time China fired a CSRC chairman during a market rout.” — EIU economist
thursday february 8, 2024 18 The E dge C E O m o rning brief world TAIPEI (Feb 7): Taiwan told its travel agents on Wednesday to stop organising new group tours to China since Beijing has yet to allow such trips to the island by Chinese tourists and has altered a flight path in the sensitive Taiwan Strait. Post-pandemic, China has largely resumed permission for its nationals to visit a host of popular tourist destinations including Japan, but has yet to add Taiwan back on its approved list amid ongoing tensions between Beijing and Taipei. China claims democratically-governed Taiwan as its own territory despite the strong objections of the government in Taipei. Taiwan had planned to resume group tours for Taiwanese to China from March 1 after they were suspended during the Covid-19 pandemic, and the tourism authority said those already organised from that date to May 31 could go ahead. But “considering the change in the situation”, including China not allowing Chinese to visit Taiwan and China’s altering of a flight route through the Taiwan Strait last week, Taiwanese travel agencies cannot arrange any more tours, the Tourism Administration said in a statement. China’s Taiwan Affairs Office, responding to the tour move, said Taiwan was “blowing hot and cold” in having previously said it wanted such tours to resume, and then stopping them. “This will only make the Taiwanese people and the tourism industry once again be dissatisfied with the political manipulation of tourism by the Democratic Progressive Party authorities,” it said, referring to the ruling party. Taiwan’s government expressed anger after China “unilaterally” changed the flight path close to the strait’s median line, saying it appeared to be a deliberate attempt to change the status quo for possible military means. China has downplayed the furore, saying it is a routine measure to alleviate air space pressure. Taiwanese are still able to visit China on individual trips, while Chinese who live in third countries have since last September been allowed to come to Taiwan again as tourists. Taiwan stops new group trips to China amid tourism, air route spat BEIJING (Feb 7): China’s financial officials expressed concerns to visiting US Treasury officials about US tariffs, investment restrictions and sanctions set up to “suppress” Chinese companies, the Chinese finance ministry said on Tuesday. Both sides had “in-depth, frank, pragmatic and constructive” exchanges on their macroeconomic situation and policy, and developing countries’ debt, among other issues in the meetings this week in Beijing, the ministry said. They agreed to continue to maintain communications, it added. In a separate meeting, China’s vice premier He Lifeng also met with US Treasury BEIJING (Feb 7): China would never allow any Chinese entities or individuals to conduct illegal activities such as cyber attacks or use Chinese facilities for such attacks, the Chinese embassy in the Netherlands said in a statement on Wednesday. The embassy was responding to a report by Dutch intelligence agencies that said Chinese state-backed cyber spies gained access to a Dutch military network last year. It is the first time the Netherlands has publicly attributed cyber espionage to China. “China opposes any malicious speculation and groundless accusations, and advocates joint efforts to safeguard cybersecurity through dialogue and cooperation,” an embassy spokesperson was quoted as saying in the statement. The allegations are the latest by a country claiming that China has tried to hack sensitive information, with the Philippines on Monday saying it had thwarted an attack by Chinese hackers. According to a Reuters report, the US government in recent months launched an operation to fight a pervasive Chinese hacking operation that compromised thousands of internet-connected devices. The hacking group at the center of recent activity, Volt Typhoon, has especially alarmed intelligence officials who say it is part of a larger effort to compromise Western critical infrastructure, including naval ports, internet service providers and utilities. The Netherlands embassy spokesperson said the “Chinese government has always resolutely opposed and cracked down on all forms of cyber attacks in accordance with the law.” Undersecretary for International Affairs Jay Shambaugh on Tuesday, China’s official Xinhua news agency reported. The vice premier urged the two countries to deepen exchanges and cooperation to stabilise and develop the China-US economic relationship, the agency added. The talks underscore trade tensions between the world’s two largest economies. Both have made overtures to ease the friction, especially as the US ramps up export controls meant to keep the most advanced semiconductors out of China’s hands. China’s vice minister of commerce, Wang Shouwen, expressed concerns about the restrictions on semiconductors and cloud services in China, fair treatment of Chinese companies in the US, and photovoltaic restrictions, according to a statement from the commerce ministry. “Sino-US economic and trade cooperation is a stabilizing force in the relations between the two countries, Wang said in a separate video call with US Deputy Secretary of Commerce Marisa Lago, adding that China is ready to work with the US, expand cooperation and manage differences. China expresses concerns to US over tariffs, sanctions in Beijing talks Chinese embassy in Netherlands says China would never allow cyberattacks by Ethan Wang, Ella Cao, Ryan Woo & Bernard Orr Reuters by Bernard Orr Reuters by Ben Blanchard & Ryan Woo Reuters Read also: US tells China Yellen wants a 2024 visit as ties stabilise
thursday february 8, 2024 19 The E dge C E O m o rning brief world (Feb 7): Treasury Secretary Janet Yellen said that while losses in commercial real estate are a worry, US regulators are working to ensure that loan-loss reserves and liquidity levels in the financial system are adequate to cope. A combination of factors “is going to put a lot of stress on the owners of these properties,” Yellen told lawmakers Tuesday in the first of two days of congressional testimony this week. She cited the increase in interest rates, higher vacancy rates thanks to shifting work patterns triggered by the pandemic and a wave of commercial real estate loans coming due this year. “I’m concerned,” she said in responding to a question from Missouri Democrat Emanuel Cleaver. “I believe it’s manageable, although there may be some institutions that are quite stressed by this problem.” Asked specifically about the lender New York Community Bancorp by New York Democrat Ritchie Torres, Yellen declined to comment on a single institution. NYCB’s stock has dropped more than 50%, erasing roughly US$4 billion (RM19 billion) in market value, since its earnings release on Jan 31 in which it announced surprise losses and a cut in dividends. “I don’t want to comment on the situa- (Feb 7): Rating agency Moody’s downgraded New York Community Bancorp’s all long-term and some short-term issuer ratings to junk on Tuesday and warned of further downgrades. The agency also downgraded all longterm and some short-term ratings and assessments of its lead bank, Flagstar Bank. Moody’s downgraded NYCB’s ratings from Baa3 to Ba2, which is considered a junk rating. The downgrade reflects Moody’s views that NYCB faces high governance risks from its transition with regards to the leadership of its second and third lines of defence — the risk and audit functions of the bank — at a pivotal time, the agency said. Moody’s said that NYCB’s core historical commercial real estate (CRE) lending, significant and unanticipated loss on its New York office and multifamily property could create potential confidence sensitivity. The elevated use of market funding may limit the bank’s financial flexibility in the current environment, the rating agency added. NYCB did not immediately respond to a Reuters request for comment. The bank last week set aside bigger-than-expected provisions for potential bad loans, mainly due to its exposure to CRE, where several borrowers are at risk due to high interest rates and low occupancies. At least 13 brokerages have downgraded or lowered their price targets for the bank’s stock since the earnings report. tion of an individual bank, but commercial real estate is an area that we’ve long been aware could create financial stability risks or losses in the banking system, and this is something that requires careful supervisory attention,” Yellen said. Read the full story Read also: New York Fed sees trouble in auto borrowing as overall debt level rises Yellen says commercial property is a worry, but regulators are on it Moody’s cuts NYCB ratings to junk, warns of more downgrades (Feb 7): Federal Reserve Bank of Cleveland president Loretta Mester said policymakers will probably gain confidence to cut interest rates “later this year” if the economy evolves as expected, but said she doesn’t see a need to rush. Meantime, she said Fed officials want to see more evidence that inflation is cooling toward their 2% target, and cautioned against lowering borrowing costs too soon. “It would be a mistake to move rates down too soon or too quickly without sufficient evidence that inflation was on a sustainable and timely path back to 2%,” Mester said Tuesday at an event in Columbus, Ohio. “If the economy evolves as expected, I think we will gain that confidence later this year, and then we can begin moving rates down.” Her remarks echoed those from several Fed policymakers in recent weeks, including chair Jerome Powell, who signaled they’re comfortable taking their time as they consider lowering their benchmark lending rate from a two-decade high. Speaking separately on Tuesday, Minneapolis Fed president Neel Kashkari celebrated the substantial improvement made on inflation but indicated more progress is needed. “We’re not all the way there yet, but we’ve made a lot of progress on inflation,” Kashkari said at an event in Mankato, Minnesota. “If we just think we’re going to continue what we’ve been experiencing, we’re on track to get back to our 2% target,” he said, pointing to three- and six-month inflation measures as “basically” at 2%. In an essay Monday, Kashkari said Fed officials have time to assess incoming data before lowering rates. Mester, who votes on monetary policy decisions this year, also said she still expects three rate cuts in 2024, consistent with the forecast she submitted ahead of the Fed’s December meeting. Speaking on a call with reporters after her speech, she said that the rate cuts don’t necessarily need to come at the quarterly meetings when the Fed releases those forecasts, known as the Summary of Economic Projections. “I don’t think tying when we move to the SEP is necessary, as long as we’re communicating well,” Mester said. Mester sees US Fed gaining confidence to cut interest rates later this year by Catarina Saraiva & Mark Niquette Bloomberg by Christopher Condon & Viktoria Dendrinou Bloomberg by Gursimran Kaur & Shivani Tanna Reuters bloomberg
thursday february 8, 2024 20 The E dge C E O m o rning brief world (Feb 7): Ant Group Co’s quarterly profit fell 92%, as the fintech pioneer founded by Jack Ma struggles to revive a business wracked by an economic downturn and more than a year of regulatory scrutiny. The Hangzhou-based company contributed 80 million yuan (US$11 million or RM53.54 million) of profit to Alibaba Group Holding Ltd. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 240 million yuan in profit for the fintech company’s September quarter, according to Bloomberg calculations off the listed company’s disclosures. That compares with a 65% plunge in Ant’s profit in the previous three months, when it swallowed a seven billion yuan hit for fines effectively ending Beijing’s clampdown on the finance conglomerate. Its earnings lag a quarter behind Alibaba’s. Alibaba attributed the decrease in Ant’s profits to the “increase in Ant Group’s net investment loss”, while the operating profit was largely flat. A representative for Ant declined to comment further. Jack Ma-backed Ant’s quarterly profit falls 92% on higher investment loss (Feb 7): Alibaba Group Holding Ltd greenlit another US$25 billion (RM119.02 billion) in stock repurchases, appealing to investors worried about plateauing growth at a Chinese e-commerce pioneer struggling to fend off new rivals such as PDD Holdings Inc. The internet company’s board approved the expansion of an existing buy-back programme that was already among the country’s largest, encompassing about US$9.5 billion last year alone. Its shares gained briefly by more than 5% before giving up those gains in pre-market trading in New York on Wednesday. Alibaba’s action may assuage some investors nervous about the uncertainty clouding the once-dominant internet company — a barometer of Chinese demand that’s going through a complicated multi-way split intended to rejuvenate the national icon. In recent quarters, its performance has mirrored a downturn in the economy while underscoring a loss of market share to rivals such as PDD and ByteDance Ltd. It posted a lower-than-projected 5% rise in December quarter revenue to 260.3 billion yuan (US$36.2 billion or RM174.19 billion), well off the pace of previous years. Net income in the period fell sharply to 14.4 billion yuan. Alibaba is trying to stage a comeback from years of brutal government punishment and strategic missteps that cost the e-commerce operator its place as the leader of the country’s tech industry. Co-founder Jack Ma in November urged the company to correct its course. Chief executive officer Eddie Wu and chairman Joseph Tsai, two of Ma’s longest-standing confidantes, took the helm as former chief Daniel Zhang abruptly quit, and are now charged with effecting the multi-way split. The ultimate goal is to beat back upstarts like ByteDance’s Douyin and PDD, while charting a new course for Alibaba to become a major player in artificial intelligence (AI) and cloud computing. Alibaba okays another US$25 bil buy-back after sales miss by Jane Zhang Bloomberg by Sarah Zheng Bloomberg Beijing slapped more than US$1 billion in fines on Ant and Tencent Holdings Ltd. in July, reining in a pair of national champions that amassed data on hundreds of millions of people. Ant is awaiting a financial holding company licence, which would pave the way for a revival of an initial public offering (IPO). Ma, who has largely remained out of public sight in recent years, ceded control of Ant last year amid a broader retreat. Ant proposed to buy back as much as 7.6% of its shares last year, giving investors a chance to reduce exposure to the firm. Under the repurchase plan, the company’s valuation was trimmed to about US$79 billion — well off its peak of US$280 billion before regulators scrapped its IPO three years ago. Investors including Warburg Pincus, Canada Pension Plan Investment Board, Carlyle Group and GIC Pte Ltd are among the top foreign shareholders that aren’t participating in the buy-back, Bloomberg reported in August. Fidelity and T Rowe Price Group Inc have agreed to sell some shares, while Alibaba has decided not to sell any of its stake. Ant is also preparing to break off its international business, along with blockchain and database management services, people familiar with the matter have said. Read the full story That entails streamlining and big moves. Wu is promoting a younger cohort of executives to revive its core Taobao and Tmall platforms, while exploring ways to unload non-core assets and dial back Zhang’s years-long “new retail” ambition. At the same time, Alibaba must find an answer to Douyin, which has won shoppers over and grew sales faster during last year’s Singles’ Day shopping festival. Competition “is likely to continue to centre on building market share at low prices”, Kenneth Fong, the head of China internet research at UBS, said before the results. “Even if macroeconomic recovery occurs, price wars between platforms are likely to continue.” Alibaba is also keen to shore up its foothold in overseas markets. Units such as Lazada and AliExpress underpin the global e-commerce operation, now among its fastest-growing divisions despite up-andcomers such as PDD’s Temu and Shein. As with most major tech firms, Alibaba counts AI among its longer-term priorities. It’s developing its own ChatGPT-like services, while making multiple investments in start-ups such as Zhipu AI and Baichuan. That AI effort has stuttered initially. Last year, Alibaba nixed the spin-off and IPO of its US$11 billion cloud arm, surprising investors while citing US curbs that cut off access to Nvidia Corp’s essential AI accelerator chips. It’s unclear what steps executives plan to take to rejuvenate a business that once counted among its growth engines, but has lost market share to stateowned players in recent years.
thursday february 8, 2024 21 The E dge C E O m o rning brief world (Feb 7): The Bank of Japan (BOJ) may scrap its negative interest-rate policy as soon as March, and make multiple hikes this year, adding to the bearish outlook for the nation’s government bonds, according to Pacific Investment Management Co (Pimco). The last adherent of sub-zero borrowing costs is expected to raise its benchmark to 0% in March or April, before hiking to 0.25% by year end, Pimco said in a market-outlook report. Quickening wage growth is likely to create persistent inflation in the economy, ensuring “supportive” conditions for exiting negative rates, according to the US$1.9 trillion (RM9.05 trillion) money manager. “It’s likely going to be a two-shot type of move to get to 0.25%,” Stephen Chang, a fund manager at Pimco in Hong Kong and a co-author of the report, said in an interview. The increase may be in 10 basis-point, and then 15 basis-point increments, he said, adding Pimco favours a lower-than-benchmark exposure to the Japanese bond market in some strategies based on its views. Fund titans such as Pimco and RBC BlueBay Asset Management are preparing for when the BOJ will finally raise rates back above zero, ending an eight-year-long period of negative borrowing costs that convinced Japanese investors to send trillions of dollars overseas. The repatriation of those investments may already be starting with funds from the Asian nation selling a record amount of European debt in recent years. The BOJ late last year “de facto ended its yield curve control” by announcing its Pimco sees multiple BOJ rate hikes starting as soon as March BANGKOK (Feb 7): Thailand’s central bank left its key interest rate unchanged for a second straight meeting on Wednesday, as expected, resisting government pressure to reduce borrowing costs to revive faltering growth. The Bank of Thailand’s (BOT) monetary policy committee in a 5-2 vote decided to hold the one-day repurchase rate at 2.5%, the highest in more than a decade. It had raised the rate by 200 basis points since August 2022 to curb inflation. Two members voted for a cut of 25 basis points. All 27 economists in a Reuters poll had predicted the BOT would the rate steady on Wednesday, while saying the first rate cut was more likely to come earlier than they expected. “The current policy interest rate is consistent with preserving macro-financial stability,” the BOT said in a statement. “Most members thus voted to maintain the policy rate at this meeting. Two members voted to cut the policy rate by 0.25 percentage point, to reflect a lower potential growth as a result of structural challenges.” The central bank said it stood ready to adjust rates as appropriate. The dissenting votes “has started the countdown to an easing in rates”, Kobsidthi Silpachai, head of capital markets research of Kasikornbank said in note. The BOT said the economy was growing slower than expected and would be supported by domestic demand, though structural impediments, particularly deteriorating competitiveness, would further hamper growth. The baht was down slightly at 35.580 after the announcement. The decision was a disappointment for the government. “I don’t agree with the decision, but I accept it,” Prime Minister Srettha Thavisin Thai central bank holds key rate as expected, PM disagrees by Orathai Sriring & Kitiphong Thaichareon Reuters by Ruth Carson Bloomberg told reporters Wednesday. He had previously called for a rate cut to boost growth in Southeast Asia’s second-largest economy, which he has described as in crisis, a depiction the BOT chief has rejected. Srettha, who is also the finance minister, has been at loggerheads with the central bank over the direction of monetary policy, also arguing that his policy to give away US$14.3 billion (RM68.07 billion) through a digital wallet was crucial for the economy. Input government was “a useful debate”, BOT assistant governor Piti Disyatat told reporters, adding there is was an ongoing discussion on the economy. BOT Governor Sethaput Suthiwartnarueput recently told Reuters that monetary policy was “broadly neutral” and the economy was not in crisis, but needed structural reforms. On Wednesday, the BOT lowered its 2024 growth outlook to 2.5%-3% from 3.2%. The economy expanded 2.6% in 2022. Consumer prices have fallen for four consecutive months year-on-year through January, driven by energy subsidies, below the central bank’s target range of 1% to 3%. The central bank said it saw headline inflation near 1% this year and saw inflation picking up in 2025. “With growth set to remain weak and inflationary pressures very subdued, we think the central bank will loosen monetary policy later in the year,” said Capital Economics analyst Gareth Leather. Two members voted to cut the policy rate by 0.25 percentage point, to reflect a lower potential growth as a result of structural challenges.” 1% cap on 10-year yields would be a reference rate rather than a hard limit, underscoring its progress towards rate hikes, Pimco analysts wrote in the report. While the New Year’s Day earthquake in northwest Japan spurred traders to pare bets on policy tightening in January, Pimco said the natural disaster will ultimately have only a minimal impact on the economy. “The ultra-loose monetary policy that Japan has pursued for the last 20-plus years thus looks set to be finally phased out,” Chang and his colleagues wrote in the report. Pimco’s global economic adviser Richard Clarida said in October last year the BOJ may axe its yield-curve-control programme before the end of last year. Read the full story Read also: SoftBank’s Son poised for best quarter in years as Arm jumps
thursday february 8, 2024 22 The E dge C E O m o rning brief world BEIJING (Feb 7): China’s commerce ministry said on Wednesday it would encourage the new energy vehicle industry to “actively” respond to foreign trade restrictions and cooperate with overseas firms, amid a European probe into Chinese subsidies for the sector. The ministry issued guidelines that also encouraged automakers to set up R&D and after-sales service centres abroad, to collaborate with foreign partners in building up supply chains, and to work more closely with shipping companies on transportation logistics. Under the measures, Chinese banks would be encouraged to expand domestic and overseas services for automakers and their supply chains, including the scale of cross-border RMB settlements. The ministry also said it would optimise export procedures for NEVs and batteries. China is estimated to have overtaken Japan as the world’s largest auto exporter in 2023, and its growing clout as a vehicle exporter is causing frictions abroad. In September, the European Commission launched a probe into Chinese-made electric vehicles over subsidies they may have received, a move branded by Beijing as “protectionist”. The US is discussing raising tariffs on some Chinese goods including EVs, the Wall Street Journal reported last month. China to help NEV industry respond to foreign trade restrictions DETROIT (Feb 7): Ford Motor shares jumped on Tuesday after the automaker said it will return more cash to shareholders, starting with an extra 18 cents-pershare dividend in the first quarter, joining General Motors in giving investors more of the cash spinning from North American combustion trucks. Ford forecast US$10 billion (RM47.6 billion) to US$12 billion in pretax profit for 2024, after earning US$10.4 billion before taxes last year. Profit from Ford’s Pro commercial vehicle business and Ford Blue combustion vehicle units offset steep losses from Model E electric vehicle operations. Ford is slowing investment in new EV capacity to match slower demand following a seismic change in EV pricing over the past year, Ford executives told analysts. Ford’s North American truck and SUV business — both commercial and consumer — will contribute to projected free cash flow of US$6 billion to US$7 billion this year. Ford has committed to return to investors 40% to 50% of free cash flow. “Whenever that (regular) dividend doesn’t reach 40-50% we will provide a supplemental dividend,” chief financial officer John Lawler told reporters on a conference call on Tuesday. “Consistency is going to be very important,” he said. Ford shares were up 6.5% in after-hours trading after gaining 4.1% during the regular session. The shares so far this year have dipped 0.7%. Ford’s electric vehicle operations will continue to be a cash drain. Model E lost an average of more than US$47,000 per vehicle in the fourth quarter, Ford reported. The company projected a wider pretax loss of between US$5 billion and US$5.5 billion this year. Ford’s next generation of EVs “will be profitable and return their cost of capital,” Lawler said. Ford is overhauling its EV strategy following a “seismic shift” in the sector’s pricing led by Tesla, chief executive Jim Farley told analysts during a call on Tuesday. (Feb 7): Tesla Inc sold just one electric vehicle (EV) in South Korea in January as a raft of headwinds, from safety concerns to price and a lack of charging infrastructure, weigh on demand. The company’s sale of a solitary Model Y SUV was its worst month since July 2022, when the Austin, Texas-based automaker sold no vehicles at all, according to data from Seoul-based researcher Carisyou and the Korean trade ministry. Across all carmakers, the number of new EVs registered in South Korea fell 80% in January from December, Carisyou data show. Carmakers are facing a slowdown in enthusiasm for EVs in South Korea as higher interest rates and inflation prompt consumers to rein in spending, while concerns about battery fires and a dearth of fast chargers are also damping demand. Tesla’s low-selling January marks a major shift for the brand as its China-made Model Y was one of the top sellers last year. Many early adopters have already bought EVs and mass-market consumers aren’t looking to purchase yet, according to Lee Hang-Koo, head of the Jeonbuk Institute of Automotive Convergence Technology. Tesla’s popularity is also hurt by its links to China, he said. “Most Koreans who wanted to buy Tesla’s cars have bought one,” Lee said. “Some people don’t like Tesla recently after finding some of them are made in China,” with consumers concerned about the quality of manufacturing, he said. South Korea’s EVs sales are also affected by strong seasonal swings in demand. Many people avoid buying vehicles in January because they want to wait for the government’s announcement of subsidies, according to Lee. Read also: GM signs US$18.6 bil EV cathode supply deal with LG Chem Ford slows EVs, sends a truckload of cash to investors Tesla sold only one car in South Korea in January by Joseph White & Nathan Gomes Reuters by Heejin Kim Bloomberg by Sarah Wu & Albee Zhang Reuters reuters
thursday february 8, 2024 23 The E dge C E O m o rning brief world (Feb 7): New York Times Co reported fourth-quarter results that beat analysts’ expectations, driven by the strength of the publisher’s bundled digital services. Earnings came to 70 cents a share, excluding some items, the company said on Wednesday, surpassing the 59-cent average of Wall Street estimates. Revenue came in at US$676.2 million (RM3.22 billion), in line with expectations of US$678.5 million. The Times has had success in attracting and retaining subscribers by bundling access to its flagship newspaper with the sports information site The Athletic, along with cooking and game apps. The publisher added roughly 300,000 digital subscribers in the fourth quarter, compared with roughly 210,000 in the third quarter. The Times now has a total of about 10.36 million subscribers. It has set a goal of reaching 15 million by 2027. Total subscription revenue grew 3.9% in the final three months of the year — in line with the 2% to 5% the company projected three months ago. The Times has been a bright spot during a particularly difficult stretch for the news industry, which has suffered widespread job losses. The stock rose 51% last year. Publishers including the Times have recently held talks with the developers of artificial intelligence services to license their content. In December, the Times sued Microsoft Corp and OpenAI Inc, alleging its copyrighted articles were improperly used to train artificial intelligence features. Microsoft declined to comment at the time, while OpenAI said in a statement it was “surprised and disappointed”. The Athletic, which the Times bought in 2022, posted an adjusted operating loss of US$4.4 million. New York Times beats estimates as digital subscriptions grow by Felix Gillette Bloomberg (Feb 7): Apple Inc won’t have to face a lawsuit alleging its smartwatch copied heart-monitoring technology from a Khosla Ventures LLC-backed start-up, AliveCor, a federal judge ruled. US district judge Jeffrey White in Oakland, California, entered a judgement on Tuesday in favour of Apple. Details of decision were filed under seal, due to confidentiality concerns by the companies. A redacted version will be made public in coming weeks. “AliveCor’s lawsuit challenged Apple’s ability to improve important capabilities of the Apple Watch that consumers and developers rely on, and today’s (Tuesday) outcome confirms that is not anticompetitive,” Apple said in a statement. AliveCor said it was “deeply disappointed” in the decision and plans to appeal. “We will continue to vigorously protect our intellectual property to benefit our consumers and promote innovation,” the company said in a statement. The dispute was based on a meeting in 2015, when AliveCor co-founder David Albert was invited by Apple executives to show off his heart-monitoring device, dubbed the KardiaBand. AliveCor claims Albert was told the iPhone maker intended to collaborate on the technology. Apple has said the meeting was like hundreds of others it has hosted with developers over the years, with no pretense of a partnership. After 18 months of discussions between the companies, in “a clear attempt to steal AliveCor’s thunder”, Apple announced its own heart health initiative for the Apple Watch, a few hours after AliveCor informed Apple of the official launch date for the KardiaBand, according to the complaint. Over the next few years, as Apple updated the Watch operating system, no other service was allowed to offer heart-rate monitoring on the device, because of the company’s “concentrated campaign to corner the market”, AliveCor claimed in its antitrust complaint. Apple denied that allegation, and said it had allowed third-party apps to use its heart-rate sensor technology since 2015. AliveCor said separate patent claims against Apple are still being litigated. Apple defeats Khosla-backed AliveCor suit over watch tech Snap misses revenue estimate, shares plunge 30% (Feb 7): Snap missed Wall Street estimates for quarterly revenue on Tuesday, as the Snapchat owner continued to struggle to compete against larger rivals for digital advertising revenue, sending its shares down 30%. Though its features are often copied by competitors, investors have long questioned Snap’s ability to hold its own against tech giants like Facebook owner Meta Platforms and Alphabet, which have more data to target ads. Meta’s advertising sales surged 25% in the December quarter. Google’s ad business grew 11% as ad sales from YouTube increased 16% in the same period. Snap has failed to show that it can capitalise on a healthy advertising market that has largely remained resilient despite economic uncertainty, said Thomas Monteiro, a senior analyst at Investing.com. “It hints that Snap’s concerns are not macroeconomic in nature but mainly internal,” he said. by Rachel Graf Bloomberg by Sheila Dang Reuters Read the full story Read also: Amazon is laying off hundreds in its healthcare operation Bloomberg reuters
thursday february 8, 2024 24 The E dge C E O m o rning brief world (Feb 7): The US expects domestic oil production to flatline for most of this year before reaching a new record in early 2025. The pullback follows a year of surprising US output growth that dampened the impact of production cuts by Opec and its allies. If the forecast holds, US output will recede modestly during the first quater just as Opec+ exports fall back — potentially supporting crude prices that are down more than 20% from last year’s highs. Shut-ins from frigid weather caused US output to drop to 12.6 million barrels a day in January from a record 13.3 million-barrel clip in December, the EIA said in a forecast Tuesday. Production will rebound to just shy of record levels this month before decreasing slightly for the rest of the year, and won’t reach a new high until next February, the agency said. The EIA continues to expect a global supply deficit of about 120,000 barrels a day in 2024. But that forecast stands in contrast to that of the International Energy Agency, which sees continued supply growth from the US, Canada, Brazil and Guyana contributing to a global surplus of 500,000 barrels a day. The EIA lowered its forecast for US oil demand this year to 20.39 million barrels a day, down from a previous estimate of 20.45 million barrels a day. The forecast for US jet fuel demand was revised lower by about 1.8% to 1.68 million barrels a day. US oil output expected to flatline until 2025, easing glut concerns QUITOL, India (Feb 7): India is expected to be the largest driver of global oil demand growth between 2023 and 2030, narrowly taking the lead from top importer China, the International Energy Agency (IEA) said on Wednesday. The world’s third-largest oil importer and consumer is on track to post an oil demand increase of almost 1.2 million barrels per day (bpd) between 2023 and 2030, accounting for more than one-third of the projected 3.2 million bpd of global increases in the period, the IEA said in a report released at the India Energy Week in Goa. The agency forecast India’s demand would reach 6.6 million bpd in 2030, up from 5.5 million bpd in 2023. “India will become the largest source of global oil demand growth between now and 2030, while growth in developed economies and China initially slows and then subsequently goes into reverse in our outlook,” it added. The single largest basis of India’s oil consumption will be diesel fuel, accounting for almost half of the rise in the nation’s demand and more than one-sixth of total global oil demand growth through to 2030, the IEA said. Jet fuel is poised to grow 5.9% annually on average but this will be from a low base compared with other countries, it added. “In the case of India, compared with China or other parts of the world, the Indian economy still continues to need more transport fuels so we expect India will continue to grow in transportation fuels. So that’s something different from countries like China,” Keisuke Sadamori, the IEA’s director of energy markets and security, said on the sidelines of the conference. Still, the electrification of India’s vehicle fleet will lead to a more muted 0.7% annual growth average through 2030 for gasoline, the IEA said. New electric vehicles and energy efficiency improvements in India will avoid 480,000 bpd of extra oil demand from now to 2030, it added. To meet this demand, India is expected to add 1 million bpd of new refining capacity over the seven-year period and this will increase its crude imports further to 5.8 million bpd by 2030, the IEA said. “India is moving to the right path in terms of adding large additional refining capacities,” Prasad Panicker, chairman of Indian India will be world’s biggest oil demand growth driver through 2030, IEA says refiner Nayara Energy said at the conference. He added that Indian gasoline demand will not peak for “at least the next 20-25 years”. G Krishnakumar, the chairman of state run refiner Bharat Petroleum Corp, said that petrochemical demand for the company will also be a factor in India’s oil consumption increase, as demand growth for petrochemicals is “directly proportional to the gross domestic product of the country”. An executive from India’s top refiner Indian Oil Corp said on Tuesday at the conference that growth in all oil product sales are expected to rise in the fiscal year to March 2025. The IEA report estimated India’s oil inventories were at 243 million barrels, with 26 million barrels held at strategic petroleum reserves sites while the rest are industry stocks. “This equates to 66 days of net imports, based on IEA methodology. Indian oil import requirements will rise rapidly toward 2030 and beyond,” the IEA said in the report. by Sethuraman NR & Nidhi Verma Reuters by Julia Fanzeres & Devika Krishna Kumar Bloomberg In the case of India, compared with China or other parts of the world, the Indian economy still continues to need more transport fuels so we expect India will continue to grow in transportation fuels. So that’s something different from countries like China.” reuters
thursday february 8, 2024 25 The E dge C E O m o rning brief world (Feb 7): Qantas Airways Ltd exploits its dominance of the Australian air-travel market to charge passengers excessively high fares, according to an inquiry into unfair pricing by the country’s former antitrust chief. Allan Fels, former head of the Australian Competition and Consumer Commission (ACCC), singled out Qantas in his final report Wednesday, accusing the country’s biggest carrier of “price gouging”. In late 2022, Qantas’ fare increases were so large that a quarter of the country’s inflation was mainly caused by the airline, Fels said. The government should remove “unnecessary restrictions on competition on international and domestic aviation”, Fels said in his report, which was commissioned by the Australian Council of Trade Unions. The government’s decision last year to block more Qatar Airways flights into Australia was “clearly” in the interests of Qantas, he said. Qantas had lobbied against the extra services. Responding to the report, Qantas said fares have declined from a December 2022 peak. The spike in prices reflected seat reductions as the aviation industry restarted following the pandemic, it said in a statement. Fels’ findings inflict further damage to the Qantas brand after a string of reputational crises, including allegations by the ACCC that the airline sold tickets on thousands of flights it had already decided to cancel. Fel’s report follows the announcement of multiple government-led inquiries into corporate Australia during the cost-of-living crisis. Treasurer Jim Chalmers has directed the ACCC to investigate pricing and competition in the supermarket sector. Qantas gouges customers on fares, unfair-pricing report says SYDNEY (Feb 7): Australia will introduce laws giving workers the right to ignore unreasonable calls and messages from their bosses outside of work hours without penalty, with potential fines for employers that breach the rule. The “right to disconnect” is part of a raft of changes to industrial relations laws proposed by the federal government under a parliamentary bill, which it says would protect workers’ rights and help restore work-life balance. Similar laws giving employees a right to switch off their devices are already in place in France, Spain and other countries in the European Union. A majority of senators have now declared support for the legislation, Employment Minister Tony Burke from the ruling centre-left Labor party said in a statement on Wednesday. The provision stops employees from working unpaid overtime through a right to disconnect from unreasonable contact out of hours, Burke said. “What we are simply saying is that someone who isn’t being paid 24 hours a day shouldn’t be penalised if they’re not online and available 24 hours a day,” Prime Minister Anthony Albanese told reporters earlier on Wednesday. The bill is expected to be introduced in parliament later this week. The bill also includes other provisions like a clearer pathway from temporary to permanent work and minimum standards for temporary workers and truck driver. Some politicians, employer groups and corporate leaders warned the right to disconnect provision was an overreach and would undermine the move towards flexible working and impact competitiveness. The left-wing Greens, which supports the rule and was the first to propose it last year, said it was a big win for the party. A deal had been reached between Labor, smaller parties and independents to support this bill, Greens leader Adam Bandt said on Twitter. “Australians work an average of six weeks unpaid overtime each year,” Bandt said. That equated to more than A$92 billion (RM285.63 billion) in unpaid wages across the economy, he added. “That time is yours. Not your boss’.” by Angus Whitley & Ben Westcott Bloomberg Australia to allow workers to ignore after-hours calls from bosses by Praveen Menon Reuters Reuters New legislation, or a so-called divestiture law, should be introduced to allow the government to break up big businesses for the worst competition abuses, Fels said. He cited similar, successful laws in the US and other countries. Such a law could possibly apply to Qantas, Fels said later, after an address to the National Press Club of Australia. More broadly, Wednesday’s report challenges the Reserve Bank of Australia’s (RBA) assessment that companies didn’t excessively increase prices during the period of high inflation to bolster profits. The RBA has maintained that the jump in profitability as prices surged was due to elevated commodity values that lifted mining firms’ income. “There is much support for the view that prices have added much to inflation,” Fels said. “Claims that the rise in profit share in Australia as explained by mining do not hold up.” Reuters
THURSDAY FEBRUARY 8, 2024 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) RENEUCO BHD 236.13 -0.030 0.050 -77.27 56.1 MINETECH RESOURCES BHD 71.28 -0.010 0.130 -10.34 232.0 VELESTO ENERGY BHD 67.23 0.000 0.255 10.87 2,095.0 AGX GROUP BHD 55.39 0.010 0.360 — 155.8 TWL HOLDINGS BHD 55.28 0.000 0.040 33.33 208.6 WIDAD GROUP BHD 51.71 -0.005 0.110 -77.32 340.6 SARAWAK CABLE BHD 46.57 -0.055 0.125 -66.67 49.9 EKOVEST BHD 46.20 -0.025 0.515 5.10 1,527.2 MALAYSIAN RESOURCES CORP BHD 45.61 -0.020 0.585 31.46 2,613.5 YTL POWER INTERNATIONAL BHD 45.55 0.170 4.040 59.06 32,732.7 YTL CORP BHD 36.09 0.050 2.240 18.52 24,560.2 TOP GLOVE CORP BHD 35.19 -0.025 0.885 -1.67 7,087.3 IRIS CORP BHD 33.79 0.010 0.090 12.50 293.7 UEM SUNRISE BHD 30.26 -0.040 0.970 19.02 4,906.7 DIALOG GROUP BHD 29.71 0.050 1.780 -14.01 10,043.8 LEFORM BHD 27.64 -0.005 0.155 -64.77 229.6 KEY ASIC BHD 27.01 -0.010 0.050 -16.67 69.9 HARTALEGA HOLDINGS BHD 24.39 -0.060 2.600 -3.70 8,874.5 HANDAL ENERGY BHD 21.65 -0.010 0.090 -25.00 33.6 ISKANDAR WATERFRONT CITY BHD 19.74 -0.040 0.735 0.68 677.0 Data as compiled on Feb 7, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) MLABS SYSTEMS BHD 0.015 50.00 4,148.4 0.00 21.7 ZEN TECH INTERNATIONAL BHD 0.020 33.33 35.0 0.00 53.3 MQ TECHNOLOGY BHD 0.025 25.00 2,991.8 0.00 38.0 NEXGRAM HOLDINGS BHD 0.030 20.00 446.0 -33.33 21.4 KANGER INTERNATIONAL BHD 0.065 18.18 4,338.1 0.00 47.6 ALDRICH RESOURCES BHD 0.035 16.67 210.0 -12.50 39.0 WARISAN TC HOLDINGS BHD 1.160 14.85 3.0 19.59 75.5 FITTERS DIVERSIFIED BHD 0.045 12.50 997.1 -10.00 105.4 IRIS CORP BHD 0.090 12.50 33,789.3 12.50 293.7 OPPSTAR BHD 1.090 12.37 3,480.7 -16.79 697.5 TRI-MODE SYSTEM M BHD 0.375 11.94 5.0 19.05 62.3 TANCO HOLDINGS BHD 0.595 11.21 16,764.5 0.85 1,217.1 ARB BHD 0.050 11.11 340.3 -22.90 62.5 BIOALPHA HOLDINGS BHD 0.105 10.53 1,560.7 17.26 191.8 SCC HOLDINGS BHD 0.320 10.34 1.0 6.67 45.2 ZELAN BHD 0.055 10.00 561.8 -31.25 46.5 TRIVE PROPERTY GROUP BHD 0.060 9.09 292.0 -25.00 75.8 AVILLION BHD 0.060 9.09 1,133.8 20.00 68.0 DIVFEX BHD 0.130 8.33 397.1 4.00 96.9 IQ GROUP HOLDINGS BHD 0.815 7.95 20.1 10.88 71.7 Data as compiled on Feb 7, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) RENEUCO BHD 0.050 -37.50 236,134.7 -77.27 56.1 XOX BHD 0.010 -33.33 3,526.3 -33.33 51.9 AE MULTI HOLDINGS BHD 0.010 -33.33 444.1 -33.33 21.6 SARAWAK CABLE BHD 0.125 -30.56 46,569.1 -66.67 49.9 TALAM TRANSFORM BHD 0.015 -25.00 30.3 0.00 64.4 KEY ASIC BHD 0.050 -16.67 27,007.3 -16.67 69.9 XIDELANG HOLDINGS LTD 0.025 -16.67 400.1 0.00 52.9 G3 GLOBAL BHD 0.025 -16.67 10,895.2 0.00 94.3 TA WIN HOLDINGS BHD 0.030 -14.29 1,638.6 -25.00 103.1 PERAK CORP BHD 0.410 -13.68 14.2 -14.58 41.0 PASDEC HOLDINGS BHD 0.290 -10.77 2.0 -7.94 116.1 SEREMBAN ENGINEERING BHD 0.660 -10.20 9.4 -4.35 52.6 PDZ HOLDINGS BHD 0.045 -10.00 13,328.9 -10.00 26.5 WMG HOLDINGS BHD 0.090 -10.00 84.6 -10.00 40.0 HANDAL ENERGY BHD 0.090 -10.00 21,648.9 -25.00 33.6 ARK RESOURCES HOLDINGS BHD 0.295 -9.23 40.5 -15.71 20.5 INDUSTRONICS BHD 0.050 -9.09 261.6 0.00 35.4 VINVEST CAPITAL HOLDINGS BHD 0.050 -9.09 3,116.6 -16.67 48.5 SENTORIA GROUP BHD 0.055 -8.33 270.0 -38.89 33.7 BENALEC HOLDINGS BHD 0.115 -8.00 1,428.7 -20.69 117.2 Data as compiled on Feb 7, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 120.800 -0.500 22.5 2.72 28,327.6 PETRONAS DAGANGAN BHD 21.480 -0.320 114.2 -1.65 21,339.4 TELEKOM MALAYSIA BHD 5.820 -0.120 1,678.3 4.86 22,335.0 RIVERVIEW RUBBER ESTATES BHD 3.230 -0.100 4.0 -1.52 209.5 BRITISH AMERICAN TOBACCO M’SIA 8.990 -0.090 859.4 -3.23 2,566.9 MBM RESOURCES BHD 4.460 -0.090 202.5 5.19 1,743.4 KUALA LUMPUR KEPONG BHD 22.020 -0.080 390.3 0.92 23,747.2 DUTCH LADY MILK INDUSTRIES BHD 23.900 -0.080 6.6 3.20 1,529.6 SEREMBAN ENGINEERING BHD 0.660 -0.075 9.4 -4.35 52.6 UZMA BHD 1.120 -0.070 2,335.5 49.33 433.7 SCIENTEX PACKAGING AYER KEROH 2.080 -0.070 19.6 -6.73 729.3 PERAK CORP BHD 0.410 -0.065 14.2 -14.58 41.0 KELINGTON GROUP BHD 2.150 -0.060 539.3 -0.92 1,395.6 PETRONAS CHEMICALS GROUP BHD 6.680 -0.060 3,257.3 -6.70 53,440.0 PARAGON UNION BHD 3.100 -0.060 33.3 11.11 259.9 HARTALEGA HOLDINGS BHD 2.600 -0.060 24,389.9 -3.70 8,874.5 PETRONAS GAS BHD 17.800 -0.060 550.3 2.30 35,221.4 MASTER-PACK GROUP BHD 3.250 -0.060 22.0 7.26 177.5 GENTING PLANTATIONS BHD 6.250 -0.060 134.7 10.04 5,607.3 SARAWAK CABLE BHD 0.125 -0.055 46,569.1 -66.67 49.9 Data as compiled on Feb 7, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) YTL POWER INTERNATIONAL BHD 4.040 0.170 45,548.2 59.06 32,732.7 GREATECH TECHNOLOGY BHD 4.620 0.170 534.7 -3.75 5,794.4 PPB GROUP BHD 14.860 0.160 275.5 2.62 21,139.8 SUNGEI BAGAN RUBBER CO MALAYA 4.840 0.160 9.2 48.92 320.3 KESM INDUSTRIES BHD 6.850 0.160 4.6 -3.11 294.6 WARISAN TC HOLDINGS BHD 1.160 0.150 3.0 19.59 75.5 HEINEKEN MALAYSIA BHD 25.020 0.140 310.9 3.65 7,558.5 OPPSTAR BHD 1.090 0.120 3,480.7 -16.79 697.5 SUNWAY CONSTRUCTION GROUP 2.470 0.100 7,164.2 27.32 3,184.7 HONG LEONG INDUSTRIES BHD 9.400 0.090 21.5 2.06 3,003.0 EDARAN BHD 1.310 0.080 1,981.6 50.57 75.9 PENTAMASTER CORP BHD 4.190 0.080 208.2 -8.91 2,980.4 UNITED PLANTATIONS BHD 19.800 0.080 157.3 11.24 8,212.7 LPI CAPITAL BHD 12.460 0.080 67.1 4.18 4,963.9 VITROX CORP BHD 7.000 0.070 487.3 -3.98 6,617.9 IQ GROUP HOLDINGS BHD 0.815 0.060 20.1 10.88 71.7 TANCO HOLDINGS BHD 0.595 0.060 16,764.5 0.85 1,217.1 HEITECH PADU BHD 1.170 0.060 807.0 32.95 118.4 CARLSBERG BREWERY M’SIA BHD 19.440 0.060 87.8 0.83 5,943.7 CHIN HIN GROUP BHD 3.840 0.060 381.6 8.78 6,794.5 Data as compiled on Feb 7, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,521.36 141.24 0.37 S&P 500 * 4,954.23 11.42 0.23 NASDAQ 100 * 17,572.73 -40.31 -0.23 FTSE 100 * 7,681.01 -31.12 -0.41 AUSTRALIA 7,615.84 34.26 0.45 CHINA 2,829.70 40.21 1.44 HONG KONG 16,081.89 -54.98 -0.34 INDIA 72,152.00 -34.09 -0.05 INDONESIA 7,235.15 -12.26 -0.17 JAPAN 36,119.92 -40.74 -0.11 KOREA 2,609.58 33.38 1.30 PHILIPPINES 6,830.04 74.78 1.11 SINGAPORE 3,156.15 30.47 0.97 TAIWAN 18,096.07 36.14 0.20 THAILAND 1,400.02 3.06 0.22 VIETNAM 1,198.53 10.05 0.85 Data as compiled on Feb 7, 2024 Source: Bloomberg CPO RM 3,877.00 34.00 OIL US$ 79.14 0.55 RM/USD 4.7607 RM/SGD 3.5445 RM/AUD 3.1085 RM/GBP 6.0145 RM/EUR 5.1271 * Based on previous day’s closing
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 THURSDAY FEB 8, 2024 SCAN ME No. 8454 PP 2644/12/2012 (031195) Tycoon sues Raja Petra for defamation As major producers and exporters of crude palm oil, Malaysia and Indonesia should voice their concern that the European Union Deforestation Regulation was enacted to restrict palm oil imports and to benefit vegetable oil commodities, says Foreign Minister Datuk Seri Mohamad Hasan Berjaya Group founder and adviser Tan Sri Vincent Tan and Berjaya Land Bhd file suit in Shah Alam High Court against UK-based blogger for reposting defamatory speech by Kedah MB regarding Selangor Maritime Gateway project. Marvel team at mall ensures pleasant visitor experience Customer service staff at Berjaya Times Square extensively trained and able to promptly provide spot-on information. Berjaya Times Square Kuala Lumpur customer service personnel providing assistance to visitors. – AMIRUL SYAFIQ/THESUN New home network coverage for digital age To keep up with times, ICT and telecommunications providers have introduced FTTR (Fibre to the Room) to provide gigabit broadband with high quality, low latency, and high stability. Joint stand against EUDR against EUDR - Report on page 3 Report on hpage 2 Report on hpage 5 Report on hpage 4
THURSDAY | FEB 8, 2024 2 ‘EU deforestation rule hurts major palm oil exporters’ JAKARTA: Malaysia and Indonesia are of the view that the European Union Deforestation Regulation (EUDR) will harm their economic interests as major producers and exporters of crude palm oil (CPO). “Malaysia and Indonesia should voice their concern about our nations’ economic interest, and that the (European Union’s) deforestation regulation (is intended to) restrict the import of our palm oil to their countries,” Malaysian Foreign Minister Datuk Seri Mohamad Hasan said at the Presidential Palace here on Tuesday, reported Antara. He said this shared stand is due to Indonesia and Malaysia having Malaysia and Indonesia have the same stand on the palm oil issue and the EU Deforestation Regulation. – MASRY CHE ANI/THESUN oMove gives rise to belief regulations created solely to benefit vegetable oil commodities in European market Govt-sponsored students abroad allowed to work in host countries PUTRAJAYA: The government has agreed that students studying overseas on Public Service Department sponsorship could be allowed to delay their return to Malaysia and work abroad. “This decision was made to allow government-sponsored students to gain experience and job skills abroad before returning to serve in the country,” the department said in a media statement yesterday. It said the postponement could be considered for eligible students, subject to some stipulations. It added that the permission to work abroad is based on applications submitted by finalyear first-degree students, and is not granted automatically. In addition, the postponement period is not more than three years and loan-sponsored students are required to repay the loan in monthly instalments during the period. The department said the period of working abroad would be referred to as the Period of Service Bond stipulated in the agreement. Applications can be made via https://myself.jpa.gov.my from Feb 15. – Bernama Toll-free travel on Feb 8 and 9 KUALA LUMPUR: Toll exemption will be given to users of Class 1 private vehicles on Feb 8 and Feb 9 in conjunction with Chinese New Year. Works Minister Datuk Seri Alexander Nanta Linggi said highway users could enjoy toll-free travel from 12.01am on Feb 8 to 11.59pm on Feb 9 at all toll plazas except the Bangunan Sultan Iskandar toll plaza and Tanjung Kupang toll plaza in Johor. He said the toll-free travel for two days would have an estimated financial implication of RM42.99 million. “The initiative is in line with the aspirations of the unity government, which focuses on the welfare of the people and reducing their cost of living.” He also advised highway users to take advantage of the waiver to plan their journeys. Highway users can get the latest traffic information from the Malaysian Highway Authority via 1-800-88-7752, Facebook or X @LLMtrafik. – Bernama Minister’s maiden official visit boosts ties with Indonesia PUTRAJAYA: Datuk Seri Mohamad Hasan’s maiden official visit to Jakarta as Foreign Minister on Tuesday is testament to the close ties between Malaysia and Indonesia, according to the Foreign Ministry. During the visit, he paid a courtesy call on Indonesian President Joko Widodo, better known as Jokowi. The ministry said the visit is an extension of Malaysia’s attempts to fortify its relationship with Indonesia and improve collaboration within the Asean region. “The foreign minister also touched on the need to intensify border trade activities at Tebedu (Sarawak) and Entikong (Kalimantan) to reach US$30 billion (RM143 billion) in annual trade as agreed to by both leaders,” said the ministry in a statement. Mohamad, who was appointed as the foreign minister on Dec 12, 2023, also had a meeting with his Indonesian counterpart Retno Marsudi. According to the statement, Malaysia and Indonesia also discussed bilateral, regional, and international issues of mutual interest. “The meeting was an opportunity for both sides to take stock of the progress of bilateral cooperation and explore new potential avenues for further strengthening the existing partnership.” The foreign minister also exchanged views with Jokowi and his Indonesian counterpart on regional and global developments, focusing on the situation in Myanmar and the conflict in Palestine. Both countries reiterated their commitment to addressing discrimination against palm oil, Bernama reported. In 2023, Indonesia was ranked as Malaysia’s third largest trading partner among Asean member states, with total trade amounting to RM111.21 billion. The statement said Mohamad discussed with his Indonesian counterpart about resolving the Myanmar crisis through Asean. Asean ‘troika’ to help resolve Myanmar crisis JAKARTA: Malaysia, Indonesia and Laos are continuing with the troika mechanism agreed to at the Asean Summit in Jakarta in September 2023 to help resolve the ongoing crisis in Myanmar. According to Indonesian Foreign Minister Retno Marsudi, it is very important for the troika mechanism, implemented by Indonesia as the previous Asean chair, to be continued by Laos as the current chair and Malaysia as the next chair to ensure continuity in the handling of the Myanmar issue. “At the summit in Jakarta, a new mechanism was agreed to by Asean in the form of a troika to discuss how to implement the Five-Point Consensus on the Myanmar issue,” Retno said on Tuesday, as reported by Antara. She made the statement after accompanying President Joko Widodo to a meeting with Malaysian Foreign Minister Datuk Seri Mohamad Hasan in Jakarta. She added that through the mechanism, Indonesia has provided Laos with all notes regarding engagements that have been carried out with all stakeholders in Myanmar, with the hope that the approach could be continued by Laos as the Asean chair this year. She said during Indonesia’s Asean chairmanship, more than 265 engagements were carried out with almost all stakeholders in Myanmar. Retno emphasised that Indonesia is optimising diplomacy to encourage progress in implementing the Five-Point Consensus. Meanwhile, Mohamad stressed the importance of Asean working together to ensure that the crisis in Myanmar does not spread to other countries or regions. He said friends of Asean are working together to find the best way for Myanmar to return to its former civil government. Myanmar’s crisis began with a coup launched by the military against the country’s elected government on Feb 1, 2021. The Myanmar military government then clamped down hard on the masses protesting the coup, with more than four thousand civilians killed and over two million people displaced. Since October 2023, the Myanmar military’s fight against ethnic groups opposing the military regime and pro-democracy forces has become increasingly fierce. On Jan 31, the Myanmar military extended the state of emergency for six months, delaying the promised elections. – Bernama-Antara the same economic interests in exporting CPO to European Union countries. He added that both countries believe that the EUDR would benefit only vegetable oil commodities in the European market. “We should make our voices heard as it is clear that the regulation is not enacted with good faith as it is only to benefit other (oil) products.” Indonesian Foreign Minister Retno Marsudi affirmed that both nations share the same stand on the deforestation regulation and economic interest in the CPO export market in Europe. She said both countries had made their stand clear on the EUDR at the 24th Asean-EU Ministerial Meeting in Brussels, Belgium, on Feb 2. “We also have the same stand regarding the palm oil issue, as well as the EU Deforestation Regulation that we discussed earlier with the European Union,” Retno said. Meanwhile, Coordinating Ministry for Economic Affairs expert staff Musdhalifah Machmud said the Indonesian government had expressed hope for a concrete solution from the Ad Hoc Joint Task Force (JTF) on EUDR, such as a delayed EUDR implementation. During the second meeting of the Ad Hoc JTF on the EUDR, which was held in Putrajaya on Feb 2, Musdhalifah said the request for the delay was made for the sake of plantation smallholders. – Bernama-Antara
THURSDAY | FEB 8, 2024 3 Schooling aid payment 95% completed KUALA LUMPUR: The distribution of the Early Schooling Aid of RM150 to each student has surpassed 95%, said Deputy Education Minister Wong Kah Woh. He said the remaining funds would be disbursed by this week, before the end of the 2023/2024 school session. “Schools have received the funds and efforts are underway to ensure the aid reaches parents or guardians,” he told reporters after attending the BAP presentation ceremony at Sekolah Kebangsaan St Mary yesterday. BAP payments totalling RM30,434,850 were presented to the Kuala Lumpur Education Department, RM15,340,800 to the Bangsar Pudu district education office, RM7,928,700 to the Sentul district education office and RM7,165,350 to the Keramat district education office. To date, a total of RM702,012,500 of the RM788,130,000 allocated for the BAP initiative under Budget 2024 has been distributed. On a separate matter, Wong said the government has allocated RM100 million this year to upgrade science and computer labs in secondary schools nationwide, as well as to initiate pioneering programmes in the science, technology, engineering and mathematics (STEM) cluster. Of the total, RM40 million will be used to upgrade 301 computer labs, RM40 million to upgrade 200 science labs and RM10 million each for procuring STEM equipment and organising STEM cluster programmes. He said approximately 2,456 schools are expected to benefit from the allocation. Wong revealed that Perlis currently has the highest student involvement in the STEM field at 60%, followed by Kuala Lumpur at 52.55%. – Bernama RM5m allocated for ‘Jualan Kasih Johor’ JOHOR BAHRU: The Johor government has allocated a total of RM5 million for the organisation of the “Jualan Kasih Johor” (Kasih) programme at 300 locations throughout the state this year. Menteri Besar Datuk Onn Hafiz Ghazi said the initiative is aimed at helping ease the cost of living burden for the people, especially the B40 and M40 groups. He said 800,000 people were targeted to benefit from this year’s initiative, which offers price reductions on selected food products such as chicken, eggs, cooking oil and fish. According to Onn Hafiz, the sales programme, a collaboration between the state government and the Federal Agricultural Marketing Authority, would offer chicken (540 metric tonnes), fish (108 metric tonnes), 135,000 trays of eggs and 60,000 bottles of cooking oil. “I am inviting the people of Johor to go to 30 locations throughout the state and God willing, we will expand it in the coming festive seasons. “Until the end of the year, there will be 300 Kasih sales locations with a total allocation of RM5 million. But for the Chinese New Year celebrations alone, it will involve an allocation of RM1.3 million,” he told reporters after launching the Kasih programme at Taman Johor in Kempas yesterday. – Bernama Action against negative labelling of palm oil PUTRAJAYA: The Plantations and Commodities Ministry will take stern action against parties involved in negative labelling of palm oil. It said in a statement it takes the issue seriously and will act against importers, traders, sellers and related parties who engage in such acts. “On Jan 26, the Multi-Agency Enforcement Force conducted inspections at several premises in Selangor under the Trade Descriptions (Prohibition of Use of Statement, Expression or Indication) (Oil Palm Product and Palm Oil Goods) Regulations 2022. “The penalty for violations under the regulations is a fine of up to RM220,000 or imprisonment of up to five years. During the inspections, it was found that some food products at the establishments were conspicuously labelled with discriminatory text against palm oil, such as “No palm oil” or “Without palm oil”. The shops included those selling local products such as baby food and imported food. Some importing companies placed stickers on the products stating “Imported and distributed by...”. The shop managers were informed of the ban on the use of such labels and asked to clear the shelves. “Warnings have also been issued to stop selling products with discriminatory labeling against palm oil and to remove existing products from the market immediately.” The ministry said follow-up inspections will be conducted to ensure the same problems are not repeated and warnings will be issued before enforcement actions that could lead to fines and seizures. According to the ministry, such labelling techniques give consumers a negative impression that the use of palm oil is harmful to health. “Apart from that, the action also damages the good reputation of the palm oil industry in the country and violates the principles of fair and transparent trade,“ it said. – Bernama Marvel team at mall ensures pleasant experience KUALA LUMPUR: In the run-up to Chinese New Year this weekend, Berjaya Times Square Kuala Lumpur (BTSKL), which is one of the world’s largest malls, is seeing some 45,000 to 50,000 shoppers each day who are rushing to make their festive purchases. With such crowds, the mall has allocated more customer service personnel to help direct shoppers, some of whom get lost in the crowd, while others need help finding their way to entertainment outlets such as the cineplexes and Manekineko Karaoke (Level 1), Jungle Gym Land (Level 3) and Berjaya Times Square Theme Park (Level 5). However, what usually comes as a surprise to shoppers is how BTSKL’s customer service personnel know the location of any particular shop when asked. The mall’s assistant general manager for marketing and promotions Alex Liew said while having a good memory is a bonus, it all boils down to BTSKL’s customer service training. “This is typically conducted by supervisors for six months. New personnel are also oCustomer service staff at Berjaya Times Square well- trained, able to promptly provide spot-on information █ BY JOSHUA PURUSHOTMAN newsdesk@thesundaily.com required to familiarise themselves with the mall and its layout, SOP for internal communication and other reporting and documentation tasks.” Liew said repetition is the key component of their training and over time, most customer service personnel will recognise a pattern or the most asked-about shops and amenities. Its customer service personnel are also required to walk around the mall during offpeak hours to help ensure that all its amenities are in order. He added that aside from representing the mall and helping customers with directions, customer service teams are always ready to assist those with special needs, provide information to tourists about the city and collect data, which is used to offer customers the products and services they want. He said as a city mall for some 20 years, BTSKL has learnt from the experience of past teams and refined its internal processes. Thus, 80% of its customer service training is done in-house and on an on-the-job basis. “We are now looking to expand our communications capabilities to converse in other languages apart from Bahasa Melayu and English. This is prompted by the fact that we have a lot of tourists from China, Japan, Europe, the US and India visiting our mall.” Customer service assistant Noor Hafizah Mohd Shah, 32, a single parent of two, has been on the job for over three years. She said she loves assisting shoppers, especially since she generally likes interacting with people. “Many may not realise it, but there is much one can learn from the shoppers as each one who comes to us for assistance has a different personality. So, we learn to adapt how we communicate with them. “Most of our shoppers are nice, but some can be rude and unreasonable. That’s ok, since they may be under stress as well.” Noor Hafizah said having a good memory helps her do the job efficiently, adding: “Once you are familiar with the locations in the mall, it is quite straightforward.” Customer service officer Hairul Azizi Abdul Aziz, 39, who is married with three children, said he decided to work in customer service as it gives him the opportunity to meet people from different countries. “I have been in customer service for 15 years, and it is an experience learning to handle and manage our shoppers each day. “Having a good memory is important to do my job efficiently, but I believe anyone can do it as long as one gets familiar with the mall and the location of all the shops.” Hairul also said career prospects at BTSKL are good, as he started as a customer service assistant before being promoted to an officer. Stadium demolition to be done by 2025 SHAH ALAM: Demolition of the Shah Alam Stadium will begin with installation of hoarding walls, followed by dismantling the structure, to be completed by mid2025. Selangor Menteri Besar Datuk Seri Amirudin Shari said in a statement he has emphasised to the parties involved that the development of the Shah Alam Stadium must meet all the standards set by the government and local authorities. “(The development of the project) is also a model that uses the best methods in infrastructure development, especially on such a scale. All mitigation measures to deal with the impact of development will be communicated by the developer to the local community so that this process runs smoothly.” Amirudin said a critical step had been taken when he witnessed the signing of a memorandum of understanding between MBI Inc Selangor with developer Malaysian Resources Corporation Berhad on Tuesday, thus marking the start of physical works after going through the planning process and thorough procedures. – Bernama DANCING WITH THE DRAGON ... Children from Lighthouse Preschool performing during a Chinese New Year event held yesterday at Centum Oasis Corporate Park in Ara Damansara, Selangor. – ADIB RAWI YAHYA/THESUN
THURSDAY | FEB 8, 2024 4 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper Activist donates RM20,000 to emotional support group PETALING JAYA: Social activist Tan Sri Lee Lam Thye yesterday donated RM20,000 from the proceeds of his book Call Lee Lam Thye: Recalling a Lifetime of Service to Befrienders KL. Befrienders KL is a not-for-profit organisation providing free emotional support to lonely people and those in distress, despair and having suicidal thoughts. At the cheque presentation ceremony here yesterday, Lee said he was first involved with Befrienders KL when he was invited as a guest speaker to commemorate World Suicide Prevention Day in 2014. “I was inspired by its work, and in 2019, I became its patron on World Mental Health Day, which falls on Oct 10 each year,” he said. The National Health and Morbidity Survey 2022 said those having suicidal thoughts and attempted suicide rates have increased to 13.1% and 9.5% respectively among Malaysian teens aged 13 to 17. “Globally, close to 800,000 people commit suicide each year, which is one every 40 seconds. It is a serious public health problem which impacts family members, friends, communities, and societies,” Lee added. He said each of Befrienders KL’s 100 volunteers commits to being on duty for three hours each week so that the service runs 24 hours a day. Volunteers also do overnight duty once a month. “Befrienders KL is also engaged in outreach programmes to educate the public and create awareness on mental health and suicide prevention issues,” he said, adding that the volunteers visit schools, universities, companies and NGOs to conduct talks. Lee presenting a cheque to Justin at Befrienders KL. – ADIB RAWI YAHYA/THESUN █ BY ALLEN WONG newsdesk@thesundaily.com 500 TVET students to be sent for skills training in China KUALA LUMPUR: Fifty-six Technical Education and Vocational Training (TVET) institutions nationwide will be sending 500 young talents to China next month for enhanced skills training, aligning with the current workforce needs. National Association of Skilled Workers secretary-general Mohammad Rizan Hassan said the agreement was reached at a meeting with all the institutions at the Rubber Industry Smallholder Development Authority headquarters on Tueday. The objective of the meeting was to reach an understanding and consensus in support of the government’s intention to establish the Malaysia-China Institute (MCI). He said the selected young talents have passed Levels 2 and 3 of the Malaysian Skills Certificate certified by the Skills Development Department and will undergo training in eight main skill areas. “The skill areas involved are electric vehicles, solar technology, e-commerce, digital, and information and communication technology, electricity and electronics, railway technology, manufacturing-related services, and machinery and equipment. “Among the participating institutions are Accelskill Academy, Advance Technology Academy, Akademi Binaan Malaysia Wilayah Utara, Auto Prima College, Institut Delta Semarak, Kolej Kemahiran Johor and Institut Teknologi Maju,” he said in a statement. On Jan 16, Deputy Prime Minister and National TVET Council chairman Datuk Seri Dr Ahmad Zahid Hamidi announced that the Chinese government and industries were prepared to offer additional scholarships for 1,000 students to undergo skills training for a duration ranging from three months to one year. The scholarship offer was executed through a collaboration with MCI as part of the Belt and Road Initiative inspired by the Chinese government, designed for countries receiving investments under the initiative. – Bernama Going high-tech to meet internet demands PETALING JAYA: As Malaysia enters the digital era, there is increasing internet use among youths, families and businesses, which has led to growing demands for high bandwidth, low latency and wide coverage. To keep up with the times, information and communications technology and telecommunications (telco) providers have introduced Fibre to the Room (FTTR) as a solution to meeting such demands. Huawei Malaysia Carrier Network Business Group head (Network Solutions) Victor Wong said FTTR is a new coverage mode for the home network in the gigabit era. “It is an upgrade to home networking and a technological evolution in fibre optics with an enormous potential to further advance the digital age. FTTR has far-reaching implications for industries such as healthcare, education and entertainment. “The technology uses optical fibres to transmit signals, which provide higher oFTTR solution upgrades home networking, offers far-reaching advancement for industries such as healthcare, education, entertainment █ BY ALLEN WONG newsdesk@thesundaily.com China-Langkawi flight milestone ALOR SETAR: The first special direct chartered flight from China to Langkawi for this year, carrying 178 tourists from Chengdu, landed safely in Langkawi on Tuesday. The Langkawi Development Authority (Lada) in a posting on its Facebook page said there will be a total of eight special chartered flights from Chengdu to Langkawi, with an estimated total of 1,480 passengers. Lada said it will continue to give incentives for chartered flights and offer additional incentives for direct and scheduled flights from new destinations to Langkawi, on condition the flight schedule be maintained for at least 12 months. “To further boost airline connectivity to Langkawi, Lada is negotiating with a travel agency from Poland, which is planning to hold at least 30 direct flights to Langkawi from Poland for a period of three years, starting from October to next March, which is during winter in that region. “Lada hopes all agencies and parties in the tourism industry will continue to improve the quality of service and level of hospitality as well as readiness to receive more tourists to Langkawi,” it said. For the record, Langkawi received 10 special charter flights in 2023. – Bernama bandwidth and more stable network performance. It can support the transmission and sharing of various medical images, facilitating diagnosis and treatment with high speed and stability.” Wong said doctors can perform diagnosis and surgical guidance remotely through FTTR’s high-speed and stable network connections. This will improve the efficiency and precision of medical services as FTTR technology supports high-definition (HD) remote conferences and online discussions, apart from facilitating the sharing and exchange of education resources. “Teachers can conduct remote classes and conduct online question and answer sessions with little interference, while for entertainment, users can enjoy richer and more vivid audio-visual experiences when watching HD videos and playing large multiplayer online games.” Wong said even during the evening rush hour, everyone can enjoy high-speed internet access with zero latency and no packet losses. FTTR technology can also support emerging technologies, such as virtual reality and augmented reality. The FTTR network solution uses optical fibres as its transmission media to ensure network data security and prevent hacker attacks. “The FTTR network can connect to multiple terminal devices and supports multiple intelligent devices and control systems, such as smart home controllers, intelligent locks, and smart lighting systems.” TIME dotCom retail product head June Gan said FTTR upgrades the traditional Fibre to the Home (FTTH) by directly extending the optical fibre to each room or space. “FTTR takes the traditional FTTH one step further by serving every room with consistent high-speed internet and better performance with fewer connection drops.” Compared with traditional broadband access technologies, Gan said the FTTR technology overcomes many limitations and obstacles faced by other network technologies. “In a traditional FTTH setting, fibre optic cables are pulled to individual homes, usually to central spaces such as the living room. The strength of a WiFi connection is dependent on several factors such as the distance of the user to the router and even concrete walls or mirrors. “FTTR, on the other hand, continues to pull the fibre optic cables from the central space to designated rooms. This means that users can experience best-in-class internet speeds and performance everywhere.” Gan said the initial cost of installing FTTR might be higher compared with ethernet cable network setups, but users can reap the benefits of high-speed internet and performance while retaining the aesthetics of their space. “An advantage of fibre optic cables is that they are much thinner and more flexible than traditional ethernet cables. This makes them easier to instal and are practically invisible, ensuring that they won’t interfere with the aesthetics and design of your space.” At present, only two telco providers – Time dotCom and CelcomDigi – offer FTTR in the country, while Huawei Malaysia provides the FTTR units, all-optical components and optical cable construction tools. Even though none of its volunteers are paid an allowance, Lee said Befrienders KL needs funds for its outreach programmes, to conduct training, cover utility bills and salaries for two administrative staff. “All the proceeds from my book are dedicated to charity,” he said, adding that he motivates others to support Befrienders KL by donating to it or spending some time to become a volunteer. Befrienders KL chairman Justin Victor said suicide prevention efforts have led to the establishment of the National Mental Health Promotion Advisory Council in 2011. Chaired by Health Minister Datuk Seri Dzulkefly Ahmad, its members include mental health experts and advocates, and representatives of government agencies and NGOs.
THURSDAY | FEB 8, 2024 5 S’wak ex-governor kidnap claims not true: IGP PETALING JAYA: The allegation that the former Yang di-Pertua Negeri of Sarawak Tun Abdul Taib Mahmud was taken away and his whereabouts were not known to family members is not true, said Inspector-General of Police (IGP) Tan Sri Razarudin Husain. He said the whereabouts of Abdul Taib were known to his siblings, lawyers and doctors as well as nurses. “Police received media reports regarding the matter from family members, but not from the Sarawak police commissioner, director of the Criminal Investigation Department or the IGP. “We are investigating the reports. The claim that he (Abdul Taib) had been kidnapped is baseless as he is at home,” he said, adding that the media reports regarding the former governor being taken away should be corrected. He said official statements on the case should only be from police. Meanwhile, in Kuching, state police commissioner Datuk Mancha Ata confirmed Abdul Taib was currently at his private residence. He also said police received eight reports regarding the matter, including from Abdul Taib’s family members. “We cannot provide the details as everything that happened is still under investigation.” Three days ago, Sarawak police confirmed receiving a report that Abdul Taib was taken away from a hospital and that the case was investigated under Section 336 of the Penal Code, regarding acts that could endanger the life or personal safety of others. – Bernama Eight cops arrested over RM32,000 extortion case JOHOR BAHRU: A police inspector and seven low-ranking officers attached to the Seri Alam police headquarters were detained to facilitate an investigation into an extortion case. State chief commissioner of police M. Kumar said the arrest of the individuals, aged between 20 and 50, was made following a report received on Monday. “Police received a report related to a case of extortion involving RM32,000. The investigation is ongoing, so the public is reminded not to make any speculations or comments that could interfere with investigations,” he said, adding that the eight were remanded for four days to facilitate investigations. The case is being investigated under Section 384 of the Penal Code. Meanwhile, Kumar said 15 men, aged between 20 and 40, were arrested in connection with the murder of a 24-year-old man at Jalan Abdullah Tahir on Sunday. Anyone with information can contact the North Johor Bahru police headquarters at 07-218 2323 or call investigating officer ASP Muhammad Afdhal Mat Saupi at 013-771 1152. – Bernama Ruling on appeal against acquittal of trio in Cradle Fund CEO case today PUTRAJAYA: The Court of Appeal will decide today on the prosecution appeal against the acquittal of Samirah Muzaffar and two teenagers on the charge of murdering Cradle Fund CEO Nazrin Hassan. The decision is scheduled to be delivered in open court at 2pm by a three-member bench comprising justices Datuk Vazeer Alam Mydin Meera, Datuk Ahmad Zaidi Ibrahim, and Datuk Azhahari Kamal Ramli. The court will also deliver its verdict on the trio’s appeal to challenge certain findings of fact by the High Court, including a fire which broke out in Nazrin’s room that was “deliberate”. If the decision favours the prosecution, the case will be remitted to the High Court, and Samirah and the two teenagers must enter their defence. Otherwise, the trio’s acquittal will remain. On Oct 23 last year, a three-member panel deferred the decision after hearing submissions from both parties. Lawyer Tan Sri Muhammad Shafee Abdullah, representing Samirah and the two teenagers, completed his submission on Oct 23 last year, while the prosecution led by DPP Datuk Yusaini Amer Abdul Karim completed their submission on Oct 17. On June 21, 2022, the Shah Alam High Court freed Samirah, 49, who is also Nazrin’s widow, and the two teenagers, now 21 and 18, of the charge after finding that the prosecution had failed to establish a prima facie case against them. The trio and an Indonesian woman, Eka Wahyu Lestari, who is still at large, were charged with killing Nazrin, 45, at his house in Mutiara Damansara between 11.30pm on June 13, 2018 and 4am on June 14, 2018. – Bernama Berjaya Group founder files suit against Raja Petra KUALA LUMPUR: Berjaya Group founder and adviser Tan Sri Vincent Tan and Berjaya Land Bhd has filed a suit in the Shah Alam High Court against UK-based blogger Raja Petra Kamarudin for reposting a defamatory speech on his X and YouTube accounts regarding the Selangor Maritime Gateway (SMG) project. The speech was originally made by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor during his election campaign on Aug 2 last year. The politician is also facing a defamatory suit by Tan and Berjaya Land. In the latest suit against Raja Petra, one of Tan’s lawyers from Messrs Pierre Chuah & Associates, Lew Wei Shing, said it was filed on Oct 11 last year in the same court. “But since service to the defendant’s last known address was unsuccessful, we successfully applied for substitute service by placing newspaper advertisements late last month, whereby the defendant has to appear in court within 14 days of the advertisement publication, failing (which), we will seek that judgment be entered.” Based on the statement of claim, Tan and oAction prompted by blogger reposting defamatory speech by Kedah MB on S’gor Maritime Gateway project █ BY JOSHUA PURUSHOTMAN newsdesk@thesundaily.com Berjaya Land claimed the reposted speech in Raja Petra’s X and YouTube accounts implied the plaintiffs were engaged in corrupt business and were cronies of Prime Minister Datuk Seri Anwar Ibrahim and Selangor Menteri Besar Datuk Seri Amirudin Shaari. They claimed Raja Petra’s reposting of the defamatory statements also meant the plaintiffs had benefitted directly or indirectly from the project, or received a free piece of land measuring 600 acres from the Selangor government and/or Amirudin for the plaintiffs’ business ventures. Tan and Berjaya Land claimed the reposting also suggested the Selangor menteri besar or the state government received benefits in exchange for the free land and caused Selangor to lose or incur losses amounting to RM180 million. “The plaintiffs further claimed Raja Petra’s reposted speech also implied Tan and Berjaya Land had benefitted under the Selangor menteri besar, acted illegally, and had unlawfully, unjustly and unduly profited by receiving monies in connection to the free land, and had defrauded the Selangor state, causing it to suffer losses,” Lew said. They also claimed the reposted speech further suggested Tan and the company were dishonest and unethical in conducting their business and were of ill-repute. In denying the claims, Tan and Berjaya Land alleged such notions about them are completely false as there was no such land awarded to them. They said a special purpose vehicle called Landasan Lumayan Berjaya Sdn Bhd (LLBSB) was formed through a joint venture between Menteri Besar Incorporated subsidiary Landasan Lumayan Sdn Bhd (45%) and Berjaya Land subsidiary Berjaya Hartanah Bhd (55%) to clean and develop the Klang River. Tan and Berjaya Land said LLBSB used property development of affordable housing projects as a means to generate revenue to fund and sustain the river cleaning initiatives under the SMG project. “They claimed the SMG project was recognised by the Green World Awards 2023 for its efforts in cleaning the Klang River and the project to rehabilitate the river was successful in improving its water quality from Class 4 to Class 2. “Tan and Berjaya Land have denied obtaining or being awarded the 600-acre land valued at RM10 billion. In fact, only several parcels totalling 103.6 acres that were identified as feasible for development and granted approval for alienation, were given to LLBSB with specific conditions,” Lew said. Apart from Tan and Berjaya Land’s suit against Sanusi, Amirudin filed a separate suit following allegations made by him (Sanusi). SHARP ACTION ... Johor Domestic Trade and Cost of Living Ministry director Lilis Saslinda Pornomo and state chief enforcement officer Muhammad Aizuddin Mohd Said (second from left) destroying counterfeit branded shoes at the exhibit storage complex in Senai yesterday. – BERNAMAPIC
THURSDAY | FEB 8, 2024 6 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ KUALA LUMPUR: The Year of the Dragon, which symbolises power, nobility, honor and success, is apparently bringing good luck to food traders and those selling home decorations for the Chinese New Year celebrations. Samantha Liew, 45, who runs a home decoration business, said she did not expect her dragon-themed baskets to be so wellreceived. “This year is the Chinese Year of the Dragon, so many buyers choose dragon-related products as decorations. I didn’t expect my custom-made dragon baskets for Chinese New Year would sell so well. “Since it went on sale in mid-January, more than 500 have been sold,” she said during an interview at Central Market recently. Liew said her customers also shared the results of decorating the dragon baskets through WhatsApp, and that makes her more enthusiastic to create more unique products, Bernama reported. Meanwhile, trader Cili Wong, 38, said this year’s sales were very encouraging as he received many orders since December for various types of biscuits, spring rolls and peanut puffs. Wong, who runs a family business that has been around for the past 50 years in Petaling Street, also produces limited-edition pastries in conjunction with Chinese New Year, namely matcha (green tea) and peach tarts. “This year’s celebration falls in February, so customers have more time to prepare compared with last year’s celebration, which fell in January. Maybe that’s why the orders received are extraordinary,” he said, adding that he also received orders from overseas, including Singapore, Indonesia and China. He said the pineapple tart or “Ong Lai” is his best-selling product for Chinese New Year. Checks at other premises in the Petaling Street area and Central Market found that the Chinese community was busy buying items to celebrate the festival, including dragonthemed lanterns, clothes and home decorations. Graphic designer Low Si Ling, 25, said he is filling up his living space with decorations to bring good luck and prosperity into his home. “Dragon is a symbol of wealth, strength and courage. In Chinese proverbs, there are many things related to dragons that carry positive meanings. Therefore, it is considered an animal that carries more ‘ong’ (luck).” Dragon year blessings for traders oMany in Petaling Street enjoying brisk business in run up to CNY this weekend Unity award winner donates RM10,000 prize money PETALING JAYA: There is joy in giving, and the giver often gets more in return. This was true for veteran singer-songwriter Datuk Irwan Shah Abdullah, better known as DJ Dave, who received the Rotary Club of Ara Damansara Special Award for Unity at its 7th Installation Gala recently. Dave generously donated his prize of RM10,000 to five religious bodies and in return, received a personalised heart wellness package from RENN Asia Wellness, worth over RM20,000. The club was surprised when Dave donated his prize money to a surau, church-run charity, Buddhist temple, Hindu temple and a Sikh gurdhwara. Rotary Club of Ara Damansara (RCAD) conferred the award for his exemplary role in a project mooted by the 16th Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin AlMustafa Billah Shah, which resulted in a popular unity song called “Setia Perpaduan”, a resounding anthem of unity that was conceived as a response to Al-Sultan Abdullah’s call for a patriotic song to unite Malaysians from all walks of life. The song, featuring a diverse ensemble of 13 artistes singing in various languages and dialects, mirrors the diverse-yet-united Malaysian society. RCAD president David Y.Q. Cheah said when gala sponsor RENN Asia Wellness came to know of Dave’s selfless act, they decided to reward him. “He has a heart of gold, so our sponsor surprised him with a personalised heart wellness package worth RM20,888 for a full year’s care. We thank our sponsor, RENN Asia Wellness, for this meaningful gesture,” Cheah said. RENN Asia Wellness CEO Jonathan Chew said Dave’s efforts in composing and leading the national unity song project was admirable enough and he was a deserving winner of the award. “We are even more touched that he donated his prize to five charities from five major religions. We feel we should do something for him as one good turn deserves another,” he said. “We decided to reward him with our premium heart wellness package that includes arterial stiffness analysis, DNA profile and oneyear of EECP treatment, plus a personal wellness team,” Chew said, adding that EECP refers to “Enhanced External Counter Pulsation” therapy offered by his centre. In his acceptance speech, Dave said he was both honoured and surprised to receive the award and expressed hope it would inspire others to live the Muhibbah way as true Malaysians. “As a simple Malaysian who cares, I will donate the award money to various charities in the name and spirit of national unity,” he said. The funds will be distributed equally among the five religious organisations, with each receiving RM2,000. The recipients are Surau An-Nur in Bandar Menjalara, Canossa Convent Welfare Centre in Jinjang Utara, Choong Wan Koong Temple in Pudu, Persatuan Pengurusan Kuil Subramania Swami in Shah Alam and Gurdwara Sahib Selayang in Selangor. In response to his surprise gift, 75-year-old Dave, who has a reputation for being a fit veteran who leads the Malaysian Masters Badminton Association, said: ”I’m fine and I’ve no problems with my heart but it’s better to be careful so I’m grateful for this gift. Thank you.” Apart from flowers, dragon-themed items were the best-sellers for most traders. – AMIRUL SYAFIQ/THESUN
THURSDAY | FEB 8, 2024 7 Blast near Pakistan candidate office kills 12 ISLAMABAD: A blast took place near an election candidate’s office in Pakistan’s southwestern province of Balochistan, a local official said yesterday, killing 12 people and raising concerns over security in the lead up to today’s election. Pakistan goes to the polls amid rising militant attacks in recent months and the jailing of Imran Khan, the winner of the last national election, who has been dominating the headlines despite an economic crisis and other woes threatening the nuclear-armed country. Authorities have said they are boosting security at polling booths. The attack took place at the office of an independent election candidate. It was not immediately clear who was behind yesterday’s attack. Several groups, including the Pakistani Taliban and separatist groups from Balochistan, oppose the Pakistani state and have carried out attacks in recent months. Khanzai hospital, close to the site of the explosion, gave the death oAttack came as political parties wrapped up campaigning for today’s election Cambodia PM thanks Thailand after activists detained BANGKOK: Cambodia’s Prime Minister Hun Manet yesterday thanked Thailand for stopping “interference” in his country’s politics, days after three Cambodian activists were held by Thai police. Rights groups have long accused Cambodia’s government of waging a relentless campaign of persecution against political opponents, and criticised Thailand for arresting dissidents on its soil. Hun Manet held talks with his Thai counterpart Srettha Thavisin in Bangkok on Wednesday and thanked him for “not allowing Thai territory to be used for any activities for interference in Cambodian internal politics.” “The Cambodian government also gives its commitment for not allowing Cambodia’s soil as land for conducting activities to interfere with Thailand or causing issues in Thailand,” he added, standing alongside Srettha at a joint news conference. Hun Manet said the arrangement promoted “stability, and trust and confidence” between the two neighbours. Hun Manet’s father Hun Sun handed over power last year after nearly four decades of ruling with an iron fist – eliminating all opposition to his power, with rival parties banned, challengers forced to flee and freedom of expression stifled. Human Rights Watch deputy Asia director Phil Robertson condemned Thailand’s cooperation with Phnom Penh, calling it a “black mark” against Srettha’s record. “They’ve declared an effectively open season on Cambodian political activists and refugees in Thailand,” he told AFP. Hun Manet was sending a loud signal to any remaining dissident voices inside or outside Cambodia, Robertson said. “He’s saying to them, you can run but you can’t hide,” he said. Hun Sen’s ruling party this week sued a prominent human rights defender for comments deemed as slander against his party. At least one of the three activists held last week appears to have UN refugee status, but in the past this has not prevented Thailand deporting people. In 2021, the United Nations High Commission for Refugees condemned Thailand for repatriating three Cambodian refugees in the space of two weeks despite the agency’s attempts to intervene. – AFP Philippines to boost presence in islands facing Taiwan MANILA: The Philippines’ defence chief has ordered the military to boost the number of troops stationed at the northernmost islands near Taiwan to fortify Manila’s defence capabilities. Defence Secretary Gilberto Teodoro also called for the development of more structures on the remote Batanes islands, less than 200km from Taiwan, during his visit to naval facilities there on Tuesday, the Philippine navy said. “Starting 2024, the operational tempo for the AFP (Armed Forces of the Philippines) will be higher,” Teodoro said, according to a Philippine navy statement issued late Tuesday. The Bashi Channel between those islands and Taiwan is considered a choke point for vessels moving between the western Pacific and the contested South China Sea. The Chinese military regularly sends ships and aircraft through the channel, Taiwan’s Defence Ministry has said. In November, the militaries of the Philippines and the United States launched joint patrols off the waters of the Philippines’ northernmost point. Batanes is the “spearhead of the Philippines as far as the northern baseline is concerned”, said Teodoro, who was accompanied by the AFP and Navy chiefs during his visit. Teodoro’s visit “signifies a pivotal moment in our nation’s commitment to territorial defence and national security”, the Philippine navy said. – AFP CHOOSE WISELY ... Demonstrators in Jakarta urging voters yesterday, especially the young, to re-examine the vision, mission, thoughts and ideas, as well as the track records of presidential and vice-presidential candidates, political parties, and legislative candidates, before making their choice. – REUTERSPIX toll as 12 and said more than two dozen were injured. Deputy Commissioner of Pishin district, Jumma Dad Khan, said that the blast had injured many people. The attack came as political parties wrapped up their campaigning in the quiet period mandated by electoral rules the day before the election. Jailed former Pakistani premier Imran earlier urged supporters to wait outside polling booths after casting their votes, as rival parties held large rallies to mark the end of the election campaign period. Any large gathering of Imran’s supporters near booths could raise tensions because of what they call a military-backed crackdown on him and his party that has restricted campaigning. The military denies interfering in politics. “Encourage the maximum number of people to vote, wait at the polling station ... and then stay peacefully outside the Returning Officer’s office until the final results are announced,” said the former prime minister via his handle on social media platform X, accompanied by an undated photograph depicting him wearing simple black clothing. The origin of the image, the first of Imran in months, was not clear. Previously Imran’s supporters have disseminated his messages, including through AI-generated audio speeches, from notes he has passed on through his lawyers during prison visits. Other political parties also wrapped up their campaigns. Electoral frontrunner Nawaz Sharif led a huge rally in the eastern city of Kasur, with his brother, former Prime Minister Shehbaz Sharif, who is running in that constituency. Amidst a sea of tens of thousands of supporters waving green party flags, Sharif called on the country’s huge youth population to support his party and took aim at Imran who has previously attracted support from young voters in the area. “Don’t fall for him,” Sharif said. Supporters of the rival Pakistan People’s Party also gathered in the southern city of Larkana led by Bilawal Bhutto Zardari, who could play king-maker if no one party receives enough parliamentary seats to form a government outright. The former foreign minister and son of assassinated prime minister Benazir Bhutto criticised opponents, including Sharif, for what he described as compromising the country’s security and economy during their tenures. – Reuters B R I E F SLANDSLIDE BURIES TWO BUSES, 11 HURT MANILA: At least 11 people were injured when a rain-induced landslide buried two buses picking up workers from a gold mine in the southern Philippines, officials said. The incident took place on Tuesday evening in Maco municipality in the mountainous province of Davao de Oro, on the country’s second-largest island of Mindanao, following days of heavy rain. Eleven people were injured, with one in critical condition, the municipal disaster agency said yesterday on Facebook. It did not say how many people were on board the buses at the time of the landslide or whether rescue operations were ongoing. Apex Mining, the Philippine operator of the gold mine, said the landslide struck outside the mine site, where buses wait for workers finishing their shifts. “Apex Mining is currently working on tracing the whereabouts of the buses dispatched to ferry the outgoing employees,” the company said in a statement issued late Tuesday. “Rescue work is hampered by limited visibility and intermittent (land)slides.” Meanwhile, an evacuation order for five villages in Maco was posted on the municipal disaster agency’s Facebook page Tuesday night. Masara village, where the landslide happened, was among them. Rain has pounded parts of Mindanao off and on for weeks, forcing tens of thousands into emergency shelters. At least 16 people died from landslides and flooding in the region last week, the national disaster agency said in its latest update. – AFP BEIJING WARMS UP TO SOUTH KOREA BEIJING: China hopes South Korea will pursue a “positive, objective and friendly” policy towards Beijing, Foreign Minister Wang Yi said in a phone call with his South Korean counterpart on Tuesday. China and South Korea have close economic ties, and should work together to maintain the stability and smooth flow of industrial and supply chains, China’s foreign ministry quoted Wang as saying in a statement. During the phone call, South Korean Foreign Minister Cho Tae-yul asked China to play a “constructive role” in curbing North Korea’s military threats, and to help North Korean defectors not to be sent back home against their will, South Korea’s foreign ministry said in a statement. Wang has invited Cho to China and both countries would continue to discuss Cho’s visit, the ministry said. Both sides exchanged views over the situation on the Korean Peninsula, the two countries’ ministries said. – Reuters
THURSDAY | FEB 8, 2024 8 Haley loses Nevada Republican primary WASHINGTON: Republican presidential candidate Nikki Haley suffered an embarrassing defeat in Nevada’s primary on Tuesday, finishing behind ballots marked “none of these candidates” by supporters of Donald Trump, according to Edison Research. Haley, the last remaining rival to frontrunner Trump for the Republican presidential nomination, was the only major Republican candidate contesting the party’s Nevada primary on Tuesday. Trump was not on the ballot. US President Joe Biden easily won Nevada’s Democratic presidential primary after dominating his party’s first nominating contest in South Carolina on Saturday. With more than 70% of votes counted, Biden had 90% support. Biden, as an incumbent president, faces little opposition within his own party to running for re-election in a likely general election rematch with Trump in November. Former President Trump will secure all of Nevada’s delegates in a separate caucus vote today, as he moves closer to clinching the nomination after back-to-back wins in Iowa and New Hampshire. Trump did not compete in Tuesday’s primary, which carried no weight in the Republican presidential oTrump’s last remaining rival finishes behind unknown candidates nominating contest. Haley is not on the ballot in today’s caucus. Republican voters could mark their ballots “none of these candidates” in Tuesday’s primary, and Haley has infuriated Trump by refusing to drop out of the Republican nominating contest. With nearly two-thirds of the Republican ballots counted, Haley had 33% of the votes, with “none of these candidates” at 60% and the winner, according to Edison Research. The rival Republican caucus today is being run by the Trump-friendly state party, and with only Trump on that ballot, he is almost certainly guaranteed victory and all of the state’s 26 delegates to the Republican National Convention in July, when the party formally nominates its candidate. Voters can participate in both the Republican primary on Tuesday and the Republican caucus today. Joe Lombardo, Nevada’s Republican governor and a Trump supporter, had said he would vote “none of these candidates” on Tuesday and caucus for Trump tomorrow. The competing Republican ballots are the result of a conflict between the state Republican Party, run by Trump allies, and a 2021 state law that mandates a primary must be held. Presidential nominating caucuses are run by state political parties, not the state, and the Trump-friendly Nevada Republican Party decided to stick with a caucus on Feb 8. In a visit to Nevada last week, Trump urged voters to ignore Tuesday’s primary and only vote in tomorrow’s caucus. Haley has vowed to stay in the Republican nominating race and on to a potential last stand in her home state of South Carolina on Feb 24, but she has no clear path to the nomination. She trails Trump badly in South Carolina, according to opinion polls. Biden campaigned in Nevada on Sunday and Monday. He appeared on the ballot along with self-help author Marianne Williamson and other lesser-known Democratic challengers. US Representative Dean Phillips of Minnesota missed the filing deadline and won’t appear on the ballot. Despite Tuesday’s results in Nevada having little impact on the nominating contests, the state will be a hotly contested battleground because its population can swing to either party and play a significant role in November’s presidential election. In 2020, Biden beat Trump in Nevada by 2.4 percentage points. Opinion polls show a likely rematch between Biden and Trump in the state will be close. About 30% of Nevada’s population is self-described as Latino or Hispanic on the US Census, and Republicans are making some inroads with these voters nationwide. Nevada also has many potential swing voters: there are 768,000 registered as “non-partisan”, more than those registered as either Democrat or Republican, according to the latest state figures. – Reuters SpaceX sexual harassment case widens SAN FRANCISCO: Former employees at Elon Musk’s SpaceX have expanded their legal case against the rocket-making company that they accuse of discrimination and sexual harassment. According to the new accusations made to a California civil rights authority, SpaceX nurtured a hostile work environment where jokes about sexual harassment were commonplace, women were paid less than men and workers who complained were dismissed. The information first reported by Bloomberg on Tuesday was confirmed by the plaintiffs’ lawyers. In these complaints, consulted by AFP, the engineers broadly describe a sexist corporate culture, where sexual comments and other forms of harassment were tolerated or made light of. They also found that Musk’s often inappropriate online humour was being emulated internally, setting the tone at the workplace. The California civil rights department, notified the aerospace company in January of the seven complaints filed several months earlier by the former employees. “The harassment was visual in nature in that CEO Elon Musk made public statements that were lewd and demeaning towards women, transgender individuals and gay people on his personal Twitter (now X) account,“ said Paige Holland-Thielen in her complaint. She also explained that she had to regularly read the Twitter account of the billionaire, since he regularly posted important information about SpaceX. Holland-Thielen also referred to a performance review that deemed her “too emotional” and asked her to “be more humble”, after she had expressed her concerns to a superior that a male colleague was taking credit for her work. The complaints follow a separate action in which a US labour agency said that the employees were unlawfully fired after complaining in a public letter about their treatment at the company. SpaceX last month went to court to try to derail the US National Labor Relations Board accusation and delay a hearing set for March 5. Musk’s company argued that the structure of the regulatory board is unconstitutional and the hearing process violates the company’s right to a jury trial. Tesla, Elon Musk’s other flagship company, has been the subject of similar accusations of racism and sexual harassment. – AFP Law soon to allow Aussie workers to ignore after-hours calls SYDNEY: Australia will introduce laws giving workers the right to ignore unreasonable calls and messages from their bosses outside of work hours without penalty, with potential fines for employers that breach the rule. The “right to disconnect” is part of a raft of changes to industrial relations laws proposed by the federal government under a parliamentary bill, which it says would protect workers’ rights and help restore work-life balance. Similar laws giving employees a right to switch off their devices are already in place in France, Spain and other countries in the European Union. A majority of senators have now declared support for the legislation, Employment Minister Tony Burke from the ruling centre-left Labor party said in a statement yesterday. The provision stops employees from working unpaid overtime through a right to disconnect from unreasonable contact out of hours, Burke said. “What we are simply saying is that someone who isn’t being paid 24 hours a day shouldn’t be penalised if they’re not online and available 24 hours a day,” Prime Minister Anthony Albanese told reporters earlier yesterday. The Bill is expected to be introduced in parliament later this week and also includes other provisions like a clearer pathway from temporary to permanent work and minimum standards for temporary workers. Some politicians, employer groups and corporate leaders warned the right to disconnect provision was an overreach and would undermine the move towards flexible working and impact competitiveness. The left-wing Greens, which supports the rule and was the first to propose it last year, said it was a big win for the party. A deal had been reached between Labor, smaller parties and independents to support this Bill, Greens leader Adam Bandt said on Twitter. “Australians work an average of six weeks unpaid overtime each year,” Bandt said. That equals more than A$92 billion (RM286 billion) in unpaid wages, he added. “That time is yours. Not your boss’s.” – Reuters ON THE EDGE ... Residents of homes in Santa Barbara, California, were forced to evacuate after cliff side erosion caused by storms put the buildings at risk of collapsing. – REUTERS PIX
THURSDAY | FEB 8, 2024 9 DOHA: Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for fourand-a-half months, during which all hostages would go free, Israel would withdraw its troops from the Gaza Strip and an agreement would be reached on an end to the war. The militant group’s proposal - a response to an offer sent last week by Qatari and Egyptian mediators - comes amid the biggest diplomatic push yet for an extended halt to the fighting, and was met with hope and relief in the Gaza Strip. There was no immediate public response from Israel, which has said it will not pull its troops out of Gaza until Hamas is wiped out. According to a draft document seen by Reuters, the Hamas counterproposal envisages three phases of a truce, lasting 45 days each. Militants would exchange remaining Israeli hostages they captured on Oct 7 for Palestinian prisoners. The reconstruction of Gaza would begin, Israeli forces would withdraw completely, and bodies and remains would be exchanged. US Secretary of State Antony Blinken arrived overnight in Israel after meeting the leaders of mediators Qatar and Egypt in the most serious diplomatic push of the war so far aimed at reaching an extended truce. A source close to the negotiations said the Hamas counterproposal did not require a guarantee of a permanent ceasefire at the outset, but that an end to the war would have to be agreed during the truce before the final hostages were freed. According to the document, during the first 45-day phase, all Israeli women hostages, males under 19 and the elderly and sick would be released, in exchange for the release of Palestinian women and children from Israeli jails. Israel would also withdraw its troops from populated areas during the first phase. Implementation of the second phase would not begin until the sides conclude “indirect talks over the requirements needed to end the mutual military operations and return to complete calm”. The second phase would include the release of remaining male hostages and “the withdrawal of Israeli forces outside the borders of all areas of the Gaza Strip”. Bodies and remains would be exchanged during the third phase. The truce would also increase the flow of food and other aid to Gaza’s desperate civilians, who are facing hunger and dire shortages of basic supplies. “People are optimistic, at the same time they pray that this hope turns into a real agreement that will end the war,” said Yamen Hamad, a father of four, living in a UN school in Deir Al-Balah in the central Gaza Strip. “People are awaiting news of a ceasefire, they are a bit hopeful despite the continued bombardment,” he told Reuters via a messaging app. Israel began its military offensive in Gaza after militants from Hamas-ruled Gaza killed 1,200 people and took 253 hostages in southern Israel on Oct 7. Gaza’s Health Ministry says at least 27,585 Palestinians have been confirmed killed in Israel’s military campaign, with thousands more feared buried under rubble. – Reuters Saudi insists on Palestinian state RIYADH: Saudi Arabia has told Washington it will not establish ties with Israel until an independent Palestinian state “is recognised”, the Gulf kingdom’s Foreign Ministry said. “The Kingdom has communicated its firm position to the US administration that there will be no diplomatic relations with Israel unless an independent Palestinian state is recognised on the 1967 borders with East Jerusalem as its capital,” read the statement published by the official Saudi Press Agency. Israeli “aggression” in Gaza must also stop and all Israeli forces must withdraw from the besieged territory, the statement said. Saudi Arabia has never recognised Israel and did not join the 2020 US-brokered Abraham Accords that saw its Gulf neighbours Bahrain and the United Arab Emirates, as well as Morocco, establish formal ties with Israel. Yesterday’s statement came in response to comments by White House National Security Council spokesman John Kirby, who said on Tuesday that talks on Saudi-Israeli normalisation were “ongoing” and that Washington had “received positive feedback from both sides that they’re willing to continue to have those discussions”. US Secretary of State Antony Blinken visited Saudi Arabia this week before stops in Egypt, Qatar and then Israel, where he is pressing for a truce deal in the Israel-Hamas war. On Tuesday, Blinken said in Doha that Saudi Crown Prince Mohammed bin Salman had “reiterated Saudi Arabia’s strong interest in pursuing” normalisation during their meeting in Riyadh. “But he also made clear what he had said to me before, which is that in order to do that, two things will be required: an end to the conflict in Gaza, and a clear, credible timebound path to the establishment of a Hamas proposes Palestinian state,“ Blinken said. – AFP three-stage ceasefire oAgreement to end war expected after four-and-a-half months Ukrainian cities hit by missiles KYIV: Russia launched several waves of missile strikes on Kyiv and other Ukrainian cities during yesterday morning’s rush hour, Ukrainian officials said, with falling debris from the downed weapons cutting off electricity to parts of the capital. Several waves of blasts rocked Kyiv during the attack, the first in February, with air defence systems engaged in destroying the missiles, Kyiv Mayor Vitali Klitschko said on Telegram. At least two people were injured in Dniprovskyi district that lies along the Dnipro River, he added. All of Ukraine was under air raid alert yesterday, with Ukraine’s Air Force warning on Telegram of a risk of Russian missile attacks across the country. The first blasts were heard just before 7am (1pm in Kuala Lumpur) in Kyiv. “I was scared when air alerts announced and we rushed here,” Tetyana, 49, told Reuters in a bomb shelter in central Kyiv, wile hugging her two-year-old granddaughter and a small dog. “I hope they will shoot down all of them. I pray for our air defence.” The scale of the attack, which lasted several hours, was not immediately known. There was no immediate response from Russia’s Defence Ministry to Reuters’ request to comment. Ukraine’s largest private energy company, DTEK, said Dniprovskyi district was left partially without electricity. Klitschko said falling debris from a downed Russian missile damaged some power lines. Oleh Synehubov, governor of the Kharkiv region in Ukraine’s northeast, said Russian missiles struck non-residential infrastructure in Kharkiv city, the administrative centre of the region. – Reuters People inspecting a wrecked police vehicle destroyed by Israeli bombardment in Rafah in the southern Gaza Strip on Tuesday. The Health Ministry in Gaza said that Israeli aircraft fire killed six Palestinian police officers securing the passage of an aid truck carrying flour in Khirbat al-Adas. – AFPPIX B R I E F SCIVILIANS AMONG 10 DEAD IN ISRAEL STRIKES BEIRUT: Six civilians were among 10 people killed in Israeli air strikes on the Syrian city of Homs yesterday, a war monitor said. “Ten people, including six civilians and two Hezbollah fighters, were killed in Israeli strikes on a building in the Hamra neighbourhood,” said Rami Abdel Rahman, the head of the Syrian Observatory for Human Right. The strikes levelled the building in one of the city’s most affluent districts, and also hit other targets linked to Iran-backed groups. Three students and a woman were among the dead. Two Hezbollah fighters were among the dead, said a source close to the Iran-backed. The Syrian Defence Ministry said: “The Israeli enemy launched air strikes against a number of sites in Homs and its countryside ... killing and wounding civilians.” State television aired footage of rescue teams searching the rubble of a collapsed building. Israel has launched air strikes on Syria, since civil war broke out in 2011. It has stepped up its campaign against Iran-backed forces since its war with Hamasbegan on Oct 7. Last week, the United States too carried out air strikes on Iran-backed groups in Syria and Iraq, killing 45 people in retaliation for a drone attack that killed three US soldiers. – AFP RUSSIAN SENATORS PUSH FOR RETALIATORY LAW MOSCOW: Russia’s upper house of parliament has asked the Finance Ministry to draw up a law that would impose retaliatory measures on the West if it moves against frozen Russian assets, TASS news agency reported yesterday.The Financial Times reported on Feb 3 that the G7 had drawn up plans to use frozen Russian assets as collateral to raise money to help Ukraine. The Kremlin on Monday warned the West that any attempt to use frozen Russian assets in such a way would be illegal and undermine the global financial system. – Reuters
THURSDAY | FEB 8, 2024 10 Empowering MACC to fight corruption THE Malaysian Anti-Corruption Commission (MACC) has been in the spotlight recently for its investigations into highprofile figures, including VVIPs. Critics can no longer claim that the MACC only targets minor offenders while letting major ones off the hook. The remarkable thing is that the MACC now has the freedom to investigate and take decisive action, unshackled by external influences, despite claims of selective persecution by detractors. Under Prime Minister Datuk Seri Anwar Ibrahim’s leadership, the government has granted full autonomy to the MACC and its chief commissioner, Tan Sri Azam Baki, enabling them to intensify efforts in apprehending corrupt individuals. This includes reopening longstanding cases, some dating back decades, related to crimes against the nation’s wealth. In recent weeks, Malaysians have been informed of the MACC’s investigations into prominent figures. These inquiries are part of the MACC’s ongoing investigation since August 2022, including all individuals and entities mentioned in the Pandora Papers and the Panama Papers. Azam has been reported as saying that the MACC’s focus will not end with these personalities, adding that many more individuals are under its radar. It should be noted that MACC’s decision to investigate old cases and reopen old files is not unique. This has been done elsewhere, even in first-world countries. In the US, the Federal Bureau of Investigation (FBI) reopened several old criminal and corruption cases, including against notable figures. For example, in 2016, the FBI reopened an investigation into Hillary Clinton’s use of a private email server while she was secretary of state. In 2020, the FBI arrested Ghislaine Maxwell, a former associate of Jeffrey Epstein, on charges related to his alleged sex trafficking ring between 2002 and 2005. In the UK, the Serious Fraud Office, tasked with handling serious and complex fraud, bribery and corruption cases, reopened several high-profile investigations. This includes the probe into the alleged bribery of officials by Rolls-Royce, culminating in the company’s record £671 million (RM3.85 billion) settlement in 2017. Similarly, in September 2023, British police opened a sex crimes investigation into comedian Russell Brand. The investigation was prompted by news reports and complaints about Brand. The allegations include sexual assault and rape between 2006 and 2013. Earlier, in October 2012, the British police launched a criminal investigation into historic allegations of child sex abuse by popular media personality Jimmy Savile over four decades. The investigation revealed that Savile had committed 214 criminal offences between 1955 and 2009. Although Saville died in 2011, the investigation led to sexual abuse convictions for multiple celebrity personalities. In France, the National Financial Prosecutor’s Office reopened an investigation in 2020 into former President Nicolas Sarkozy’s alleged involvement in illegal campaign financing during the 2007 election. Meanwhile, in Germany, the Federal Criminal Police Office initiated an investigation in 2020 into a corruption scandal involving German carmaker Volkswagen, which had been ongoing since 2015. As such, the timing of the investigations into corrupt practices or criminal activities does not matter, and there can be various reasons why such investigations were not conducted earlier. In the Malaysian context, the answer for this is quite obvious – political interference, and perhaps a lack of resources. These cases may have been stalled or buried due to their sensitive nature. In other cases, the complexity of the cases and the need for new evidence have been factors. However, the MACC is now ramping up its efforts to correct the situation by clearing these old cases. The benefits of having an independent and effective anticorruption agency cannot be overstated. Corruption has been a major obstacle to Malaysia’s growth and development, and it is reassuring to see that steps are being taken to address the issue. We hope the MACC will lead the way in the fight against corruption in Malaysia without fear or favour. Efforts to bolster the independence of the MACC, for example, ensuring the security of tenure for the chief commissioner’s position and having its own Service Commission rather than relying on the Public Service Commission, will ensure its freedom in years to come. Their freedom to investigate and take action is a positive development for the country. The writer is a retired media practitioner who has worked as a media liaison person for a politician in the 1990s. Comments: letters@thesundail.com “The benefits of having an independent and effective anti-corruption agency cannot be overstated. Corruption has been a major obstacle to Malaysia’s growth and development. COMMENT by Suki Abdullah Enclosed is my payment of RM payable to SUN MEDIA CORPORATION SDN BHD. 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11 THURSDAY | FEB 8, 2024 Teen substance abuse a silent epidemic THE issue of substance abuse among teenagers has become a pressing concern, negatively impacting communities worldwide. It refers to the harmful or hazardous use of psychoactive substances, including alcohol, tobacco, nicotine and illicit drugs. This problem may stem from various factors, such as the fear of missing out, curiosity and societal influence, among others. In severe cases, persistent abuse in teenagers can lead to addiction. According to the World Health Organisation, approximately 155 million teenagers globally or more than 25% of the population between the ages of 15 and 19 consume alcohol. In Malaysia, the 2022 National Health and Morbidity Survey conducted by the Health Ministry revealed that three out of four (75%) teenagers aged 13 to 17 have experimented with drugs. Of these, 18.6% acknowledged consuming alcohol at some stage in their lives, with 64.6% doing so before reaching the age of 14. In 2023, reports indicated that over 137,000 individuals were grappling with drug addiction, with youths and teenagers accounting for 65% (73,769) of the total. It is apparent that substance abuse not only jeopardises the physical and mental health of teenagers but casts a shadow on their educational pursuits, familial bonds and overall societal contributions. Teenage substance abuse often extends beyond experimental or occasional usage, evolving into a detrimental pattern of misuse that disrupts normal daily functioning, relationships and personal development. The issue transcends data and statistics, unfolding into a compelling narrative about the obstacles young people face while navigating a world filled with influences that can jeopardise their promising futures. Battle against easy access and availability Based on a local media report from 2017, students can obtain ice and methamphetamine (meth) for as little as RM10. Given the continuous influx of drugs into Malaysia, it is conceivable that this cost may have further decreased. A teenager’s propensity for substance abuse is markedly influenced by their environment. Adolescents with easy access to drugs, tobacco and alcohol are at heightened risk of developing an addiction. Recent actions by the current administration, including providing unrestricted access to tobacco products and dropping the generational end-game (GEG) provision from the anti-smoking Bill, will make it easier for teenagers to access these products. This raises concerns about availability and affordability, creating an environment where adolescents can easily obtain these harmful products. Furthermore, teenagers, especially those living in high-risk areas with prevalent drug users, are more susceptible to the effects and risks of substance use. For example, as highlighted in the 2023 Synthetic Drugs in East and Southeast Asia report by the United Nations Office on Drugs and Crime, the Golok River, which borders Kelantan and Narathiwat, has been extensively used by organised crime groups for transporting significant amounts of crystal methamphetamine. This is evidenced by numerous reported cases in 2022 and early 2023. According to the National AntiDrugs Agency (Nada), there is a growing concern regarding synthetic drugs, especially in states such as Kedah, Kelantan, Terengganu and Perlis. The geographical proximity of these states to Thailand renders them vulnerable to the impact of the illicit drug trade, with Thailand serving as a principal source and distributor. Moreover, these states have high rates of unemployment and poverty. The huge demand in Malaysia and affordability of foreign illicit substances have created a scenario where local communities and teenagers are easily enticed. This susceptibility can lead to involvement of teenagers as drug mules or consumption in exchange for additional pocket money. Family environment and structure As the primary social unit, families shape teenagers’ attitudes, behaviours and overall well-being. Four key factors – unhealthy family dynamics, parental substance abuse, lack of parental supervision and inconsistent discipline – can contribute to teenagers’ vulnerability to substance abuse. In contrast to the past, where parents upheld strict rules against substance use, contemporary parenting has shifted towards a more lenient approach. Some parents now tolerate their children’s actions, even if they are misguided. A recent incident illustrated this shift when a local media reported a father openly supporting his son caught smoking on school premises during the SPM examination. Socioeconomic inequalities faced by teenagers, although seldom addressed, present a significant risk for substance misuse. Studies indicate that adolescents from socioeconomically disadvantaged households are more prone to experiencing poorer mental health compared with their more affluent counterparts. Research indicates that the prevalence of cigarette smokers in rural schools is nearly twice as high compared with the prevalence in urban schools. Furthermore, parental substance abuse is a potent predictor of a teenager’s susceptibility to similar behaviours. Children of parents who misuse substances face an elevated risk of developing substance abuse issues themselves. A cross-sectional study involving 6,254 teenagers aged 14 to 19 years old found that teenagers with at least one or both parents smoking had a higher risk of smoking than those with neither parent smoking. The normalisation of substance use within the family may contribute to the notion that it is acceptable, impacting the teenager’s views towards substances. Intricate effects on physical and mental health Peer pressure, academic stress and identity issues are among the factors that can contribute to mental health challenges during adolescence, a critical developmental stage characterised by significant cognitive, emotional and physical growth. For example, some teenagers may resort to using substances to find momentary relief from anxiety, depression or trauma as a coping mechanism. Research conducted among 2,458 teenagers aged 13 to 15 years found that those suffering from a depressive disorder are over five times more likely to smoke. Moreover, the stigma surrounding mental health issues may dissuade some teenagers from seeking professional assistance, leading them to self-medicate and perpetuate the cycle of substance misuse. Co-occurring disorders, where drug abuse and mental health concerns coexist, pose specific challenges for diagnosis and treatment. Teenagers involved in substance abuse face a multitude of physical consequences that extend beyond the immediate effects of intoxication. Substance use can exert a significant toll on teenagers’ physical health, ranging from disrupted sleep patterns to compromised nutritional habits. In addition to reinforcing GEG, Emir Research recommends the following measures: 0 Extend the reach of AntiDrugs Skuad initiatives administered by Nada by directing concerted efforts towards rural areas identified as high-risk, intensifying the impact on substance abuse prevention and intervention. 0 Conduct comprehensive rehabilitation initiatives among teenagers and youths, involving accessible mental health interventions, aiming to address both aspects holistically, for example, nicotine replacement therapy administered in Hong Kong. This will promote healthier coping mechanisms, reduce stigma and promote an environment that supports the overall well-being of teenagers. 0 Maximise taxation for alcohol, drugs, tobacco and similar products. Higher taxes can lead to price increases, which may discourage youngsters from starting or continuing to consume alcohol and cigarettes, as young people are susceptible to price fluctuations. 0 Stakeholders should be prepared to implement blockchain technology to reduce the prevalence of smuggling. This will create transparent and tamper-resistant records of transactions, making it more challenging for smugglers or even civil servants to manipulate documentation. 0 Reinforce border security, especially in highrisk areas such as Sungai Golok, Kelantan and Bukit Kayu Hitam in Kedah. Modernise border infrastructure to streamline legal trade processes, and implement robust monitoring systems to deter illicit activities. In addition, establish mechanisms for anonymous reporting of smuggling activities, with appropriate protection for whistleblowers, as smuggling often involves collusion with civil servants. The urgency of addressing substance abuse among teenagers lies not only in mitigating its immediate consequences but also in fostering a generation free from addiction, allowing them to realise their full potential. The writer is a research assistant at Emir Research, an independent think-tank focused on strategic policy recommendations based on rigorous research. Comments: letters@thesundaily.com Some teenagers may resort to using substances to find momentary relief from anxiety, depression or trauma as a coping mechanism. – REUTERSPIC Boost English proficiency for nation’s global competitiveness THE Parent Action Group for Education Malaysia has rightly criticised the Education Ministry’s decision to abolish Dual Language Programme classes to address poor Bahasa Malaysia (BM) proficiency. There must be a rational and balanced approach between the usage of BM and promoting English as a universal language. This is not a zero-sum game. Elevating English will not diminish the importance of our national language, rather it will enhance our economic and social standing globally. English is the international language of commerce, science, technology and the internet, with approximately 1.5 billion speakers worldwide, of which less than 400 million use it as their first language. Therefore, its significance as a secondary language holds relevance for Malaysia, where BM is the national language. The reputable English Proficiency Index underscores the connection between English proficiency, innovation and wealth, aligning with our nation’s aspirations to become a highincome country. Countries with stronger English proficiency tend to enjoy higher income levels, increased innovation and improved quality of life. Singapore’s remarkable economic success can largely be attributed to its workforce’s proficiency in English. Consequently, addressing our country’s deficiency in English language skills requires urgent public policy intervention if we are serious about achieving high-income developed status in an increasingly competitive global landscape. Steve Ngeow Sze Loong Kajang LETTERS letters@thesundaily.com “The urgency of addressing substance abuse among teenagers lies not only in mitigating its immediate consequences but also in fostering a generation free from addiction. COMMENT by Jachintha Joyce
PROPERTY PROPERTY THURSDAY | FEB 8, 2024 12 Resilient M’sian economy in 2023 supports market’s growth: Report 2024 emphasising a significant measure aimed at positively influencing local land and property markets. He highlights that the imposition of a flat 4% stamp duty on memorandum of transfer for noncitizens and foreign-owned firms effective from Jan 1 holds great potential to contribute to the stabilisation and control of land and property prices for the benefit of local residents. Office sector During the review period, Klang Valley recorded the completion of four new office developments, collectively adding circa 3 million sq ft of leasable space to the market. The KL City suboffice market continues to face increased pressure due to continued supply-demand imbalance, while the office markets in KL Fringe and Selangor exhibit resilience, characterised by steady leasing activities, particularly in prime locations featuring Grade A buildings. Five notable office deals in KL City and Selangor with a collective value of RM837.8 million were announced oKnight Frank looks at the performance of various sectors in the second half of last year across Klang Valley, Penang, Johor Baru and Kota Kinabalu Gamuda Land partners Alliance Bank to boost community bonds, foster new ties PETALING JAYA: In an era where community bonds hold greater significance than ever, Gamuda Land and Alliance Bank Malaysia Bhd are embarking on a strategic partnership to solidify their joint commitment to fostering connections and empowering the community. In line with Gamuda Land’s development principle “a town is community”, Gamuda Land continues to inject a sense of neighbourliness and community spirit in all its townships. There is joy to be found from living in a place where people know one another, live and play together and look out for one another. It is an ideal that the developer seeks to foster within its developments. Outlined in a recently signed memorandum of understanding (MoU), Alliance Bank credit card users can now also enjoy that sense of community by leveraging their accumulated rewards points for an array of offerings, including Gamuda Land property vouchers and GL Play (Gamuda Land’s Leisure and Hospitality arm) vouchers. These vouchers enable customers to redeem leisure and hospitality tickets, providing opportunities for family enjoyment at SplashMania Waterpark @ Gamuda Cove featuring 39 rides, including Malaysia’s first virtual reality water slide, or at FunPark @ Gamuda Luge Gardens, home to Malaysia’s first Skyline Luge attraction. The exclusive offerings from Gamuda Land can be redeemed until April 30. Gamuda Land CEO Chu Wai Lune expressed his views on this collaborative effort, stating, “Our placemaking is more than just a collection of rides and attractions, it is spaces designed to bring people together. The partnership with Alliance Bank goes beyond mere transactional benefits; it encourages individuals to explore our parks and wetlands, engage in shared experiences with families, and forge new connections with fellow neighbours. As a property developer committed to enhancing the lives of our communities, this collaboration aligns seamlessly with our placemaking efforts and serves as a catalyst to building a stronger, more tightly knit community.” In addition, Alliance Bank customers will have the privilege of using their rewards points to redeem exclusive goodies at Gamuda Land’s series of Chinese New Year events held in their townships including Gamuda Cove @ Kuala Langat, Gamuda Gardens @ Sungai Buloh North, twentyfive7 @ South of Kota Kemuning, Jade Hills @ Kajang, and HighPark Suites serviced residence @ Petaling Jaya. This partnership allows Alliance Bank virtual credit card users to gain exclusive benefit of seamlessly managing their downpayment repayments with a 0% interest for 12 months on downpayments of up to RM40,000 for any participating Gamuda Land property. Echoing the same sentiment, Alliance Bank group chief consumer banking officer Gan Pai Li said: “By aligning with Gamuda Land’s ethos of ‘a town is community,’ we aim to not only provide financial benefits to our credit card users but also contribute to the creation of vibrant and interconnected neighbourhoods. This alliance allows our customers to leverage their rewards points for a range of offerings, enhancing their experiences at Gamuda Land’s exciting attractions.” Simultaneously, Gamuda Land customers who successfully apply for a mortgage loan with Alliance Bank will receive a special reward of RM888.88 in Touch ‘N Go e-wallet credits. Sime Darby, Lagenda Properties team up to build affordable homes KUALA LUMPUR: Sime Darby Property Bhd through its wholly owned subsidiary Seed Homes Sdn Bhd has signed a shareholders’ agreement with Lagenda Properties Bhd to set up Seed Homes Lagenda, a 50:50 joint venture to develop affordable homes. Seed Homes is a new portfolio under Sime Darby Property aimed to deliver innovative solutions in the affordable homes segment. The joint venture will leverage Sime Darby Property’s over 50 years presence and track record along with its extensive and strategic land bank, as well as Lagenda Properties’ highly scalable model of developing selfsustainable affordable townships. The partnership is expected to support the expanding affordable housing market in Malaysia and further encourage homeownership. Seed Homes Lagenda is set to embark on its first affordable township project in Gurun, Kedah via the acquisition of a 249-acre of land from Sime Darby Property. Anticipated to yield over 3,000 affordable homes, this development capitalises on its strategic location and spillover effects of the potential industrial growth in Gurun. Sime Darby Property’s group managing director Datuk Azmir Merican said: “We are very pleased to form a JV with Lagenda Properties, which will be Sime Darby Property’s maiden foray into the affordable township sector. The partnership will also serve as a vehicle to commercially develop affordable homes to provide greater access to homeownership for a wide range of customers.” Datuk Azmir Merican added: “This joint venture demonstrates our commitment to pursue and deliver affordable homes, and partner with parties that can bring value to the overall proposition, guided by our Purpose to be a Value Multiplier for People, Businesses, Economies, and the Planet.” Lagenda Properties’ managing director Datuk Jimmy Doh conveyed his enthusiasm about the joint venture, leveraging the strengths of both companies to deliver a new standard in affordable housing. “With a successful track record that includes the delivery of over 10,000 affordable homes, Lagenda Properties has demonstrated a keen ability to align with market preferences and needs. Our established expertise enables us to develop affordable townships with attractive price points.” KUALA LUMPUR: The Malaysian economy grew 3.9% in the third quarter of the year (Q3’23) supported by stronger domestic demand, improved employment conditions, a rebound in the tourism sector, and increased construction activity. Knight Frank Malaysia, the independent global property consultancy has released its Real Estate Highlights 2nd Half of 2023 (REH) which features insights into the performance of the property markets across Klang Valley, Penang, Johor Bahru and Kota Kinabalu. Residential sector Market activity in the country’s residential property market improved in the first nine months of the year, with both transaction volume and value registering a year-on-year (YoY) growth of 1.3% and 3.5% respectively. However, the number of new residential properties offered for sale in the primary market has significantly decline in 2023, effectively addressing concerns related to property overhang and market mismatch. Developers are increasingly promoting homeownership through collaborations with banks, in addition to offering post-sale services such as hassle-free fit-out, rental programmes and home care services. According to Judy Ong, senior executive director of research and consultancy, Knight Frank Malaysia, “Despite the inflationary pressures and elevated OPR, the residential property market appears to be moving in a positive direction, marked by increased sales volume, new property launches and successful completions. This is further supported by the government’s initiatives and incentives to encourage homeownership among the rakyat and coupled with the recently relaxed criteria for the MM2H Programme, the residential market maintains a cautiously optimistic outlook as it enters 2024”. Enoch Khoo, managing director at Knight Frank Property Hub has expressed a positive outlook on Budget The KL City sub-office market faces pressure from supply-demand imbalance, while office markets in KL Fringe and Selangor show resilience with steady leasing activities, especially in prime locations with Grade A buildings. – PEXELS PIX largest rooftop public park in Kuala Lumpur. Earlier, on Oct 9, 2023, Phase 1 of the mall within the larger integrated development of Pavilion Damansara Heights opened with a committed occupancy rate of 80%. In 2024, three more shopping centres/supporting retail components with a collective retail space of circa 1.7 million sq ft are scheduled for completions/openings. Sunway Group continues to be at the forefront of ESG practices. Its mall group has launched the Sustainability Collaboration Alliance Network to facilitate various collaboration as well as introduced a 3-tier learning programme known as ReX (Retail Extended Learning) to enable retailers to gain knowledge. Yuen May Chee, director of property management, Knight Frank Malaysia said that the impending sales and service tax rate hike, from 6- 8% effective from March 1, 2024 coupled with the introduction of a 5- 10% luxury tax and restructuring of subsidies, may dampen growth in the retail market. Retailers experiencing higher tax liabilities will see rising operational costs, potentially eroding their profit margin and this may lead to price adjustments which ultimately will impact consumers. Nonetheless, the government is committed to ease the burden of rising cost of living and has further allocated RM200 million for the ongoing “Payung Rahmah” initiative. The government also continues to allocate cash assistance and incentives to boost consumer spending with a 25% increase from the previous year to RM10 billion. during the review period. This slight uptick in office transactional activities and heightened interest suggest returning confidence, with corporate entities looking to take up additional office space to fulfil growth needs. Teh Young Khean, executive director of office strategy and solutions, Knight Frank Malaysia said new government initiatives aimed at attracting venture capital and fostering startup incubation, coupled with the growing presence of major multinational corporations in Klang Valley are anticipated to generate additional interest and activity in the office market. Retail sector In the second quarter of 2023, Malaysia’s retail sales fell below market expectations, contracting 4% YoY. Aside from the high base effect, the decline is attributed to consumers’ weakening spending power amid elevated inflation. For the full year of 2023, the country’s retail sales growth has been revised downwards to 2.7% from the earlier projection of 4.8%. Redefining the luxury retail landscape, The Exchange TRX, home to over 500 experiential stores made its debut on Nov 29, 2023 featuring a roster of first-to-market foreign brands including Gentle Monster, Maison Kitsune, Alo Yoga and Drunk Elephant. The centre piece of The Exchange TRX – its 10-acre park is the
THURSDAY | FEB 8, 2024 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: advertise@thesundaily.com MTA aims to double takaful penetration in Malaysia KUALA LUMPUR: The Malaysian Takaful Association (MTA) targets to double the takaful penetration in Malaysia to 40% from 20% in four years under the Hijrah 2027 Strategic Plan on the back of the untapped market potential where 46% of Malaysians are still unprotected. MTA CEO Mohd Radzuan Mohamed said there is a substantial market potential in Malaysia as 46% of people are still lacking protection, which represents opportunity for the takaful industry. “And one of the areas we need to focus on is ensuring protection for those who are unserved and underserved. This includes not only the B40, (but also) what we like to call it the BM40, because we also have the bottom 20% of the M40 that are impacted. These include gig workers, young parents, who are also being economically impacted,” he told reporters after unveiling the Takaful Financial Sector Blueprint (FSB) interim report yesterday. He said the strategy to reach that 40% oAssociation sees opportunity in market as 46% of Malaysians are still not protected █ BY HAYATUN RAZAK sunbiz@thesundaily.com target involves implementing blended takaful which aims for sustainability via philanthropic approaches such as zakat, wakaf or rolling back takaful benefits for the benefit of others in case of death. “Blended takaful as compared to Perlindungan Tenang … Pelindungan Tenang looks into something that is available, accessible and affordable. Blended takaful is looking into how to make it sustainable by having philanthropist approach,” he said. Mohd Radzuan mentioned that MTA is collaborating with the UN Development Programme (UNDP) to address the protection gap for small or medium-sized enterprises (SME). “We will be working with them to develop a risk management tool for SME. So hopefully that will also pick up because SME is also one area where there is a lot of protection gap. Especially the micro SME, for example the small stalls,” he said. Additionally, MTA is partnering with the banking sector to integrate financial and protection services. “We are working together with the banking side … where the banking side, they have the ITEC card. We are also coming up with iTenang for the financial side of it as well as the protection side of it can work together. We have done two programmes already with them in Terengganu and also in Kedah. So hopefully we will be able to do that again,” he added. MTA has released the interim report on the FSB Programme 2023 which builds upon the industry’s commitment to Value-based Intermediation for Takaful (VBIT). The interim report delves into the achievements of takaful operators, examining key project milestones and intended outcomes against the backdrop of the VBIT and its maturity continuum. MTA chairman Elmie Aman Najas said “The Takaful FSB Programme 2023 has the potential to improve the industry and make it more competitive and resilient. We are confident that the programme will continue to make progress and achieve its goals. “Despite challenges and increasing competition from the traditional financial system, with strong collaboration across the Takaful industry and the enthusiastic participation of stakeholders, the Takaful FSB Programme is wellpositioned to sustain its momentum and drive further advancements in the years to come. This programme serves as a valuable tool for the takaful industry to address longstanding challenges and enhance industry overall growth and development.” The Takaful FSB Programme is in the implementation phase, and the working groups are making substantial progress in all strategic thrusts through the eleven working groups. The full report will be available in the first quarter of 2025. AGX Group opens at 41 sen for 17% premium in debut KUALA LUMPUR: AGX Group Bhd made its debut on the ACE Market of Bursa Malaysia Securities yesterday, opening at 41 sen per share, representing a premium of six sen or 17.14% above its initial public offering (IPO) price issue of 35 sen. At the opening bell, the counter saw 6.87 million shares changing hands. It closed at 36 sen on volume of 55.39 million shares. The group is a third party logistics solutions provider, offering services encompassing sea and air freight forwarding, aerospace logistics, warehousing and road freight transport. It raised RM33.78 million from the public issue of 96.5 million new ordinary shares. Of the proceeds raised, it has allocated RM16.44 million or 48.7% for working capital, RM8.70 million or 25.8% for business expansion in Malaysia and South Korea via setting up new warehouses and offices in Penang and Johor Bahru as well as a new office in Busan, South Korea. Meanwhile, RM4.5 million or 13.3% will be used to defray listing expenses and RM4.14 million or 12.2% is reserved for repayment of bank borrowings. Executive director and group CEO Datuk Ponnudorai Periasamy disclosed that the group plans to set up a warehouse at Port of Tanjung From left: TA Securities Holdings Bhd head of corporate finance Ku Mun Fong and (dealings, institutional sales) executive director Datuk Hamzah Mohd Tahir, AGX Group directors Mark Penu and Jayasielan Gopal, Ponnudorai, chairperson Datuk Rozalila Abdul Rahman, directors Peter Neo Lip Pheng, Datuk George Alfonso Miranda, Aida Mosira Mokhtar and Ong Teng Yan, during the listing ceremony. █ BY GLORIA HARRY BEATTY sunbiz@thesundaily.com TeleChoice secures contract worth S$500 million from U Mobile PETALING JAYA: SGX mainboard-listed TeleChoice International Ltd, a regional diversified provider and enabler of innovative infocommunications products and services, through wholly owned subsidiary Planet Telecoms Managed Services Sdn Bhd (PTMS), has acquired a Fourth Party Logistics (4PL) managed services contract from one of Malaysia’s major telcos, U Mobile Sdn Bhd. The contract, estimated at S$500 million (RM1.77 billion) over a three-year duration, involves the provision of 4PL managed services, providing a comprehensive suite of solutions for supply chain management. PTMS’s role includes: Device procurement: PTMS will act as a buying house, and manage the sourcing and inventory of new devices, aligning with market demand. Warehousing, storage and distribution: PTMS will oversee the warehousing, logistics and distribution of devices, including last mile delivery, ensuring timely delivery across Malaysia. Inventory management: PTMS will implement real-time inventory systems to allow U Mobile to respond quickly to market needs. Customer experience: As PTMS will take on comprehensive management of U Mobile’s extensive distribution network consisting of over 600 retail and channel touchpoints across Malaysia, they will use their expertise to provide a consistent and smooth experience for customers, from online ordering to in-store pickups. “We are excited to be U Mobile’s strategic partner for their next growth phase, marking a significant opportunity for TeleChoice to enhance our capabilities and performance. This collaboration reaffirms our commitment to maintaining a leading position in this competitive market. As a dedicated ally in the dynamic telecommunications landscape, TeleChoice is committed to providing U Mobile with a streamlined and resilient supply chain, optimising operational efficiency to thrive in this fiercely competitive market,” said Pauline Wong, president, and CEO of TeleChoice. U Mobile CEO Wong Heang Tuck said: “At U Mobile, we are driven by our commitment to improve overall customer experience for our growing base. Through this partnership with TeleChoice and PTMS, we will be able to enhance and expand the range of devices made available to our customers by leveraging on their expertise and experience as an end-to-end 4PL managed services provider.” Pelepas, situated about 21km from its Singapore warehouse. “There’s an MoU (memorandum of understanding) between Singapore and Johor for a special economic zone. So for us to have a warehouse there, will complement our Singapore operations,” he told reporters after its listing ceremony. At the same time, the group plans to set up a warehouse in Penang. “We have customers there, but we are not able to fully service them well because we don’t have an office and a presence in northern Malaysia, so opening up in Penang is part of our plans. “Finally, we also want to open up in Busan, South Korea. Right now, our South Korean office is very sea freight-based. Busan is a seaport, so for us to open up in Busan will help us be much closer to our customers and this will help us get new customers as well,” he added. Touching on target markets, Ponnudorai said it has existing presence in five markets in Asean – Malaysia, Singapore, the Philippines, Myanmar and Cambodia. “It’s always been our ambition to be one of Southeast Asia’s largest regional players. Indonesia, Thailand, Vietnam are large countries with large populations … it will be something that we cannot afford to ignore. While we may not have immediate future plans, (albeit) we certainly have an eye on them,” he said. TA Securities is the underwriter, principal adviser, sponsor and placement agent for AGX’s IPO.
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 14 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM PETALING JAYA: The sales value of the manufacturing sector registered a decline of 4.2% year-on-year to RM149.9 billion in December 2023, according to the Department of Statistics, Malaysia (DoSM) yesterday. Chief Statistician Malaysia Datuk Sri Dr Mohd Uzir Mahidin said the sales value of the manufacturing sector fell by 4.2% to RM149.9 billion in December 2023 (November 2023: -2.6%), marking the largest decline since May 2020 (-20.4%). “The decrease was primarily influenced by the continuous decline in the petroleum, chemical, rubber & plastic products subsector since June 2023, registering a negative 13.6% in December 2023 (November 2023: -10.8%). Moreover, the electrical & electronics products sub-sector dropped by 4.6% (November 2023: -5.3%) while the food, beverages & tobacco subsector slipped by 2.6% (November 2023: 2.0%),” he added. Compared with the preceding month, he said, the sales value shrank by 3.3% as against RM155 billion recorded in November 2023 (-1.1%). The sales value of export-oriented industries which represent nearly 70% of total sales, further declined by 8.4% in December 2023 after shrinking by 6.9% in November 2023. The decrease was predominantly attributable to the drop in the manufacture of coke & refined petroleum products at negative 24.9%, followed by the manufacture of vegetable & animal oils & fats (-8.6%); and the manufacture of computer, electronics & optical products (-4.8 %). Nevertheless, the domestic-oriented industries remained upbeat by recording a positive growth of 6.7% in December 2023 (November 2023: 8.8%) primarily underpinned by the sturdy expansion in the manufacture of fabricated metal products, except machinery & equipment at 11.5%. Additionally, the manufacture of motor vehicles, trailers & semi-trailers experienced a growth of 8.0%; while the manufacture of food processing products increased by 6.8%. On a month-on-month basis, both export and domestic-oriented industries dropped by 3.9% and 1.8% respectively. In the fourth quarter of 2023, the sales value of the manufacturing sector continued to decelerate for three consecutive quarters, declining by 2.7% year-on-year to reach RM461.5 billion (Q3 2023: -2.9%). The decrease was attributed to the petroleum, chemical, rubber & plastics products (-11.2%); and electrical & electronics products (-4.2%) sub-sectors. Mohd Uzir said, “The sales value of the manufacturing sector reaching RM1.8 trillion, increased marginally by 0.2% as against 2022 (15.8%). During the year, the number of employees increased by 1.7% to record a total of 2.37 million persons while salaries & wages rose by 3.5% to RM97.8 billion. Moreover, the sales value per employee registered a decline of 1.5%, amounting to RM759,735.” Mosca to move to larger facility in Johor’s Frontier Park, double workforce KUALA LUMPUR: Germany’s Mosca GmbH, a world leader in end-of-line strapping solutions to secure goods in transit, is expanding its operations in Malaysia by relocating to a larger facility in Frontier Park, Johor, and doubling its workforce. CEO Timo Mosca said its facility for the final assembly of automatic strapping machines will move from a 40,000 sq ft plant nearby to a new 103,458 sq ft factory at Frontier Park. “We have chosen Frontier Park for its wellmanaged, secure and green environment, which matches our sustainable manufacturing practices,” he said in a joint statement. Mosca said the company, with over 20 years of presence in the state, officially sealed the deal with local developer WB Land Sdn Bhd in Johor Bahru on Tuesday. WB Land group managing director Kevin Woon said this relocation was a significant milestone not only for the company and the World Federation Internationale des Administrateurs de Bien-Conselis Immobiliers (Fiabci) awardwinning industrial park but also for the industrial landscape in Johor and Malaysia. Woon said the new facility, built on 0.91 hectares of land, was designed with an emphasis on eco-friendly practices, including being ready for solar energy, to align with global standards for green manufacturing. “We are glad to play a part in attracting global leaders in manufacturing and technology and contribute towards Malaysia’s growing reputation as a competitive and business-friendly destination,“ he said. Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman said Mosca’s investment in Malaysia is a testament to the confidence in the country’s business environment, strong infrastructure and global connectivity. – Bernama Malaysia’s manufacturing sales value slips in December oYear-on-year decline of 4.2% to RM149.9 billion, biggest drop since May 2020 LKE Group aims to raise RM5.3 million via ECF for durian plantation expansion KUALA LUMPUR: LKE Group Sdn Bhd aims to raise RM5.3 million in its equity crowdfunding (ECF) campaign to fund the latest phase of its durian plantation expansion, TembikaiX, offering 5.5 million units of shares in redeemable convertible preference shares. LKE Group said in a statement yesterday that, through the ECF campaign, which has gone prelive, potential investors are offered a 70% profit-sharing scheme with a forecast annual average return on investment of 47% for prelive investments and 42% for investments made after the campaign has gone live. “During the 15-year investment tenure, prospective investors can anticipate securing guaranteed returns, starting at 19% within the initial five years and accumulating at an impressive 153% up until the fifteenth year, or investors will receive the specified 70% profit sharing after tax, whichever has the higher return,” it said. LKE Group director of sales and marketing Bronson Wee said the durian plantation management company is proud to open up larger investment opportunities to the public through pitchIN. “Our goal is to expand our management of durian plantations in Manchis, Pahang, using the smart farming technologies currently operational in our phases, contributing to the advancement of the agricultural sector in Malaysia. “Through big data driven by smart farming technology, our plantation expertise becomes a legacy, safeguarding skills for future generations,” he said, adding that this is part of the company’s legacy and investment programmes. According to the statement, the company currently oversees more than 80.94 hectares of plantations, hosting a diverse range of durian varieties tailored to project specifications. It said the innovative DurianX phase has successfully integrated smart farming technologies and leveraged data analysis and monitoring to optimise the durian trees’ growth conditions. LKE Group said it intends to utilise the majority of the funds raised through the ECF campaign on plantation development and maintenance, while the rest of the funds will go towards marketing and management costs. – Bernama Services producer price index up 1% in fourth quarter 2023 KUALA LUMPUR: Malaysia’s services producer price index (SPPI) increased 1% year-on-year in the fourth quarter of 2023 (Q4) to average 115.5 points compared to 1.4% in the third quarter, said the Department of Statistics Malaysia. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said most subsectors recorded an increase in the quarter under review. “The arts, entertainment and recreation subsector rose by 5.5% (Q3: 0.8%), attributed to an increase in gambling and betting activities (6.2%), he added “Accommodation and food and beverage service activities went up by 3.4% (Q3: 4.6%) due to increases recorded by beverage service activities (4.0%) and restaurants and mobile food service activities (3.8%),” he said in a statement yesterday. Mohd Uzir said other subsectors that recorded marginal growth were education (1.0%), real estate activities (0.6%), health (0.3%) and professional (0.2%). However, the transport index saw a decline of 0.5%, particularly due to passenger air transport (-2.7%). Meanwhile, the index of information and communication was unchanged. On an annual basis, the SPPI increased by 2.1% in 2023, which was similar to the previous year. On a quarter-on-quarter comparison, he said, the SPPI edged up by 0.1% compared to the 0.4% recorded in the previous quarter. – Bernama
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 15 Malaysian consumers adopt AI, brands slow to follow KUALA LUMPUR: Despite almost half of consumers in Malaysia (47%) favouring artificial intelligence (AI)- assisted brand interactions, a new report shows brands in Malaysia are trailing the world in harnessing the latest AI innovations. According to Adobe’s State of Digital Customer Experience report, almost half of consumers in Malaysia (47%) would choose an AI-enabled tool or service over a human interaction, far more than the global average of 39%. Many more want both options to be available, particularly when exploring new products and services. Despite these preferences, and consumers in Malaysia anticipating customer experience (CX) benefits from generative AI, brands are falling behind global peers. Only 8% are leveraging generative AI to enhance CX initiatives compared to 18% globally. 11% of brands globally are currently establishing upskilling initiatives to work with generative AI, compared to 6% of brands in Malaysia. Interestingly, brands in Malaysia (22%) are slightly more likely than brands globally (20%) to have already briefed senior leadership on organisational implications. However, brands in Malaysia are committed to improving their generative AI capabilities in the next 12 months, with 33% saying it is their primary CX focus. That puts it fourth on the strategic agenda, with a similar proportion as investing in new technologies that touch or impact the CX (32%), breaking down organisational silos (36%), and more than half as integrating the CX technology stack (61%). “Consumers are swiftly embracing generative AI-led experiences. While 77% of Malaysian consumers want consistent, personalised experiences online and offline, while seeking seamless interactions across all channels. – UNSPLASH PIX oAs companies race to digitalise, navigating data privacy and security is vital to maintain customer trust Solarvest, Centexs and Huawei jointly launch wind turbine testbed, green energy gallery PETALING JAYA: Solarvest Borneo Sdn Bhd, a unit of clean energy expert Solarvest Holdings Bhd has unveiled a new green energy testbed with the Centre for Technology Excellence Sarawak (Centexs) and Huawei Technologies (Malaysia) Sdn Bhd (Huawei Malaysia) at Centexs’ HQ in Santubong, Kuching, Sarawak. The introduction of the new testbed serves to facilitate further exploration of sustainable energy solutions and features cutting-edge capabilities in wind turbine technology electricity generation from hydrogen, microhydropower, and in building integrated photovoltaics systems. This aligns with the Sarawak government’s efforts to advance the development of a new green energy agenda, following and building upon the successful introduction of the smart solar PV and green hydrogen testbed in June 2023. The Solarvest Borneo, Centexs and Huawei Malaysia collaboration aims to drive innovative breakthroughs in the clean energy industry and nurture local talent within the region. The launch event, which included the opening of the Green Energy Gallery, showcased a comprehensive green energy ecosystem which aims to raise public awareness and foster a sustainable tomorrow. Solarvest Borneo director Leon Liew Chee Ing said, “Malaysia’s proactive approach of exploring the potential of hydrogen, as outlined in the National Energy Transition Roadmap directly aligns with Sarawak’s Hydrogen Economy Roadmap. It sets the stage to propelling Sarawak as a key regional green hydrogen hub and serves as a strategic lever to drive Sarawak into a developed state by 2030.” Centexs CEO Datuk Syeed Mohd Hussien Wan Abdul Rahman said, “The addition of the new testbed at Centexs offer hands-on training opportunities that will enrich the learning experiences of students and ease their transition into the renewable energy sector workforce. For instance, he added the hydrogen production testbed coupled with the solar PV testbed and wind turbine have enabled them to efficiently power up their green energy gallery. Huawei Malaysia Digital Power Business vice-president Chong Chern Peng said that the technological advancements play a critical role in driving clean energy adoption. “Huawei Malaysia is committed to making meaningful contributions to energy supply reliability and efficiency with innovative technologies. We are confident in helping build a better tomorrow for Sarawak,” he added. Terberg Tractors Malaysia opens Asia-Pacific HQ KUALA LUMPUR: Terberg Tractors Malaysia Sdn Bhd (TTM) is expected to see significant growth of its terminal tractors business for Malaysia and the Asia-Pacific region (Apac) over next few years. TTM, a joint-venture company between Sime Darby Industrial Sdn Bhd and Netherlands-based Royal Terberg Group BV, has recently launched its new and innovative headquarters for the Apac region. According to TTM CEO Boo Wei Ching, the terminal tractor segment is expected to grow with an estimated CAGR of 4.5-9% over the next six years. “We are pleased to launch our Apac headquarters in Malaysia as part of our expansion plans in the region. As TTM continues to benefit from increasing regulatory and compliance emphasis towards achieving carbon neutrality, we remain confident in the company’s market expansion and growth.” TTM has seen exemplary and steady revenue growth since it started operations in Malaysia back in 2005. In November 2022, it successfully launched Malaysia’s first fully batterypowered electric terminal tractor Model YT200EV, which is now widely used and a preferred product by its customers in the Asia-Pacific region. TTM’s new head office located in Puchong is more than just a workspace; it’s a dynamic hub that merges the comforts of home with cutting-edge office functionality. This strategic move aims to foster closer relationships and collaborations, creating a vibrant space for dynamic interactions that align with TTM’s growth trajectory. brands in Malaysia are lagging behind in terms of AI adoption, our findings indicate that this will soon evolve as Malaysia as well as other Asia markets are well poised for an accelerated uptake amid continued realisation of the direct benefits that generative AI offers and its strong position as a technological hub. When it comes to business strategies, most brands in Malaysia acknowledge that improving the customer experience is of top or significant priority. This is driving brands to focus on evolving their digital experiences, underscored by a strategic emphasis on flexible and highly personalised interactions,” said Simon Dale, vice-president Asia, Adobe. “Consumers have emphasised that their most impactful brand experiences are those that are relevant and personalised to their preferences. As brands continue to digitalise at full speed to meet expectations, it is crucial that they also strategically navigate data privacy and security concerns so as to not jeopardise their relationship with customers,” said Dale. Consumers in Malaysia are more data-conscious in the generative AI era. More than two-thirds of consumers in Malaysia (77%) want brands to offer the same level of personalisation online and inperson, and they want unified, seamless experiences in every interaction. However, meeting this expectation remains a top challenge for brands. Most are yet to adopt the datadriven technology tools and capabilities needed to deliver personalisation at scale and keep pace with customer preferences. Both consumers and brands agree that data privacy and security concerns constrain personalisation. 22% of brands in Malaysia say consumer reluctance to share data is a top barrier, but they underestimate the impact of data missteps. 69% of consumers in Malaysia will stop or consider not buying from a brand that isn’t transparent about personal data use, but only 26% of brands believe it impacts retention. Consumer attention on data practices extends to generative AI. Consumers in Malaysia are worried that as brands use generative AI, their personal data will be used without consent (59%) and that too much data will be collected (64%). Across Malaysia, many brands are yet to respond to the need for stronger AI guardrails to meet consumer expectations and ensure trust isn’t compromised. Just 10% of brands in Malaysia have ongoing initiatives to create internal usage policies. The State of Digital Customer Experience research is derived from a global survey of 4,000 consumers and 1,500 executives and direct reports (collectively referred to as “brands”). The survey, conducted by Oxford Economics, was in field between June and August 2023. The Asia Pacific analysis comprises a sample of 1,000 consumers and 375 executives from Japan, Singapore, India, Australia and New Zealand, Malaysia, and Thailand.
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 16 @thesundaily FOLLOW ON TWITTER Malaysian Paper DBS cuts CEO’s pay on digital disruptions Commenting on the results, Gupta said return on equity (ROE) is expected to be 15% to 17% for this year and fee income growth in double-digits. Net interest margin (NIM), a key profitability gauge, for the full year is expected to be slightly below fourth quarter NIM of 2.13%. Singapore banks’ profit growth momentum is poised to slow as central banks pivot toward rate cuts and volatile markets weigh on the wealth business. DBS, the first Singapore lender to report this earnings season, said October-December net profit grew to S$2.39 billion from S$2.34 billion a year earlier on the back of a 9% increase in total income. This beat the mean estimate of S$2.37 billion from four analysts, according to LSEG data. DBS proposed a final dividend of S$0.54 per share and a 1-for-10 bonus issue. The NIM of 2.13% during the quarter was up from 2.05% a year earlier. Full-year annual profit jumped 26% to S$10.3 billion. ROE climbed to a record high of 18% from 15% a year ago. In November, Singapore’s central bank barred DBS from acquiring new businesses or making non-essential IT changes for a six-month period to ensure it focuses on shoring up its digital banking services. Gupta said yesterday DBS is making good progress in making its technology more resilient. – Reuters The DBS logo outside an office in Singapore. – REUTERSPIC oPenalty comes even as Singapore’s largest lender posts record profit Thai central bank holds key rate BANGKOK: Thailand’s central bank left its key interest rate unchanged for a second straight meeting yesterday, resisting government pressure to reduce borrowing costs to revive faltering growth. The Bank of Thailand’s (BOT) monetary policy committee in a 5-2 vote decided to hold the one-day repurchase rate at 2.50%, the highest in more than a decade. It had raised the rate by 200 basis points since August 2022 to curb inflation. Two members voted for a cut of 25 basis points. All 27 economists in a Reuters poll had predicted the BOT would keep the rate steady yesterday, while saying the first rate cut was more likely to come earlier than they expected. “The current policy interest rate is consistent with preserving macro-financial stability,” the BOT said in a statement. “Most members thus voted to maintain the policy rate at this meeting. “Two members voted to cut the policy rate by 0.25 percentage point, to reflect a lower potential growth as a result of structural challenges.” The central bank said it stood ready to adjust rates as appropriate. The dissenting votes “has started the countdown to an easing in rates”, Kasikornbank head of capital markets research Kobsidthi Silpachai said. The BOT said the economy was growing slower than expected and would be supported by domestic demand, though structural impediments, particularly deteriorating competitiveness, would further hamper growth. The baht was down slightly at 35.580 after the announcement. The decision was a disappointment for the government. “I don’t agree with the decision, but I accept it,“ Prime Minister Srettha Thavisin told reporters yesterday. He had previously called for a rate cut to boost growth in Southeast Asia’s second-largest economy, which he has described as in crisis, a depiction the BOT chief has rejected. Srettha has been at loggerheads with the central bank over the direction of monetary policy. Input from the government was “a useful debate”, BOT assistant governor Piti Disyatat told reporters, adding there was an ongoing discussion on the economy. BOT Governor Sethaput Suthiwartnarueput recently said monetary policy was “broadly neutral” and the economy was not in crisis, but needed structural reforms. – Reuters Douyin chief resigns to take new role within ByteDance HONG KONG: TikTok owner ByteDance said yesterday Zhang Nan has resigned as the CEO of Douyin Group, the popular short video platform’s sister app in China, while assuming a new role to shepherd ByteDance’s video editing app. Zhang posted on her personal social media account on WeChat that she was resigning from the position, in a move confirmed by ByteDance. Zhang said she would be joining the team at Jianying, a video editing app owned by ByteDance, but she did not reveal her position at the unit. She said she would help grow the product in the age of artificial intelligence. Jianying is the Chinese app counterpart to the popular editing app CapCut. According to research firm Data.ai in September, CapCut became ByteDance’s second app to surpass US$100 million (RM476 million) in total consumer spending after garnering more than 490 million users. Zhang, who has worked at ByteDance for 10 years, has been a core leader for the company and helped grow Douyin into the leading short video platform and one of biggest apps in China. She reported to ByteDance CEO Liang Rubo in her position as head of Douyin Group. In addition to the Douyin app, Zhang, who Forbes named as one of the world’s most powerful women in 2020, oversaw ByteDance’s flagship news aggregator app Toutiao in her former role. Before joining ByteDance, Zhang founded a popular photo-sharing app called Tuba that was acquired by ByteDance in 2014. – Reuters Nestle India posts higher profit on strong urban demand NEW DELHI: Nestle India reported a nearly 16% rise in fourth-quarter profit before a one-time charge on steady urban demand for its products including its Nescafé coffees and KitKat chocolates. Profit before exceptional items and tax grew to 9.94 billion rupees (RM570 million) for the three months ended Dec 31 from 8.59 billion rupees a year earlier. The company recorded a one-time charge of 1.07 billion rupees during the period, it said. Shares of Nestle India, which is known for products such as Maggi instant noodles and Milkmaid condensed milk, rose 2% after its results. They jumped more than 18% in the third quarter, outperforming a 10% rise in the Nifty FMCG Index. Urban consumers with higher disposable incomes bought more packaged goods during the quarter despite the rising prices of essentials such as vegetables, pulses and spices. This helped the company report an 8.1% rise in revenue to 46 billion rupees, while cost of materials consumed, which includes raw materials such as palm oil, coffee beans, spices and sugar, eased 1.4% to 19.76 billion rupees. “Our beverages business witnessed a doubledigit growth and Nescafé gained significant market share,” managing director Suresh Narayanan said in a statement. Parent and Swiss chocolatier Nestle SA is due to report quarterly results on Feb 22. Nestle India’s rival Hindustan Unilever missed quarterly profit expectations, while Britannia Industries reported a fall in profit, both on account of subdued rural demand and elevated competition. Marico reported better-than-expected profit on declining raw material costs. Nestle also declared an interim dividend of 7 rupees per shares. – Reuters SINGAPORE: DBS Group cut CEO Piyush Gupta’s pay by S$4.1 million (RM14.5 million), penalising him for last year’s digital banking disruptions, even as Singapore’s largest lender posted a record 2023 profit and its fourth quarter earnings beat expectations. The pay cut marks a 30% reduction in annual variable compensation for Gupta, DBS said yesterday. Gupta was one of the highest paid CEOs in the city-state in 2022 when his total pay amounted to S$15.4 million. It was also part of a 21% cut in variable pay of members of DBS’ group management committee. “The heavy-punishing move highlights the management’s commitment to minimise future disruptions,” IG Asia market analyst Yeap Jun Rong wrote in a note. “The cuts may also help to offset some of the higher compliance costs, higher operational costs and costs set aside to enhance system resiliency, and limit its overall impact on their earnings.” The pay cuts come as DBS, which is also Southeast Asia’s biggest bank by assets, maintained its guidance for net interest income for 2024 at around last year’s levels after posting a 2% rise in fourth quarter net profit that beat expectations. “I think that’s a good element of governance,” Gupta told reporters in an earnings briefing. “If you can establish accountability and figure you know that people take responsibility for making fixes, that’s a good place to start.” DBS shares rose nearly 3% yesterday, outperforming the benchmark index’s 1% gain. The logo of Douyin is displayed next to mobile phones showing the e-commerce sites on the app. – REUTERSPIC
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 17 Milei’s reform Bill stalls in Congress BUENOS AIRES: Argentine President Javier Milei was dealt a major setback in Parliament yesterday when his deeply controversial deregulatory reform package was prevented from advancing and sent back for a rewrite, legislators said. Just as the Chamber of Deputies was preparing for a vote on the Bill, the president’s La Libertad Avanza party suddenly requested and obtained the adjournment of the session. “The governors (of the provinces) did not keep their word,” said Oscar Zago, leader of the ruling party faction. The matter is being sent “back to committee” for further dialogue, Zago said, while denying that the move was a failure for the president. The new hurdle for the package, which last week won approval in principle pending further examination, was put up as Milei was on a trip to Israel, from where he offered a fiery response. “Our government program was voted by 56% of Argentines and we are not willing to negotiate it with those who destroyed the country,” Milei posted on social media platform X. “We know that it will not be easy to change a system in which politicians have enriched themselves at the expense of Argentines.” Milei’s spokesman Manuel Adorni said work on the package would continue and insisted that cuts to government spending will still have to be made. “All government expenses will have to be reviewed to comply with President Milei’s order, which is zero deficit,” Adorni told the LN+ channel. Members of the opposition celebrated what they saw as a victory. “A political defeat for the government,” said Peronist lawmaker Leandro Santoro, referring to the drama in Parliament as “unprecedented ridicule” for the government. With the Bill being sent back to committee, opposition lawmaker Myriam Bregman told reporters “this means they have to start from scratch”. Citing protests in front of Congress last week as the Bill was being debated, Bregman added: “Popular rejection was felt throughout the country.” – AFP Amundi benefits from market uncertainty PARIS: Amundi, Europe’s biggest fund manager, reported yesterday that its assets under management (AUM) rose 7% from a year earlier as prolonged uncertainty on the markets fuelled demand for low-risk investment products. Instability on the financial markets has stemmed from sharp raises in interest rates, lingering inflation in Europe and unexpected geopolitical events. The economic slowdown on the continent has pushed retail and institutional investors to safer bets in the form of treasury funds, structured products and exchange traded funds, Amundi’s fourth-quarter results again showed. Total AUM at Amundi rose in the fourth quarter by €133 billion (RM681 billion) from a year earlier to €2.037 trillion. They increased by 3.2% from the previous quarter. The bulk of the inflows of €13.2 billion, excluding contribution from joint ventures, was underpinned by treasury products and so-called “passive management”, which aims to replicate the performance of a specific market index or benchmark. Amundi, which is controlled by French bank Credit Agricole , also announced the acquisition of Zurich-based multi-manager Alpha Associates, which has a team of 70 people and manages €8.5 billion of assets spanning private debt, infrastructure, private equity and venture capital. Amundi’s fourth-quarter adjusted net income came in line with market expectations at €313 million, up 3.4% from a year earlier. – Reuters British investors dump local stocks to buy American LONDON: British investors put more money into equity funds than any month since April 2021, although most of it went to US equity funds as they continued to pull cash from local stocks, data from fund network Calastone showed yesterday. UK flows into equity funds rose for three months in a row, hitting £2.01 billion (RM12 billion) in January, Calastone said, in a turnaround from October when British investors pulled £1.2 billion out of equities overall. January’s net equity fund inflows were driven by a record £1.4 billion worth of flows from British investors into American equity funds. World stocks have risen in recent months as investors bet that major central banks will cut interest rates this year – even as US Federal Reserve chairman Jerome Powell has pushed back against the idea that the central bank could cut rates as soon as next month. “The markets are convinced that disinflation will bring rate cuts earlier and faster than previously expected, especially in the US,” said Edward Glyn, head of global markets at Calastone. “This has driven an equity market rally, particularly among the US tech stocks whose share prices benefit most from lower bond yields.” Funds focused on Europe saw inflows of £471 million, their third best month on record. But UK-specific funds saw outflows of £673 million, as investors have pulled cash from UK equity funds every month since June 2021, Calastone said. UK investors yanked £8 billion from British stock funds last year, after pulling out £8 billion in 2022 and £1 billion in 2021. “The doom and gloom over the UK stock market seems firmly lodged in investors’ minds. “UK equities are exceptionally cheap by historic and international comparisons, but buyers are nowhere to be found,” Glyn said. Asia-Pacific-focused funds were dragged down by negative sentiment around China and saw net outflows for the ninth month in a row, of £211 million, Calastone said. China’s stock markets have been tanking as the economy struggles with its post-Covid recovery. – Reuters Wind power giants give bleak view of 2024 COPENHAGEN: The world’s three biggest wind power groups yesterday gave a sober view of the year ahead, citing ongoing challenges in the maturing sector that continues to suffer from project delays, equipment issues and inflation. Siemens Energy, the world’s largest maker of offshore wind turbines, expects a 2024 loss before special items of around €2 billion (RM11 billion) at its troubled wind division Siemens Gamesa, where quality problems at some onshore models have caused a major crisis. Rising prices for components and regulatory delays have caused writedowns and losses across the industry despite robust demand for renewable technology. The challenges will continue, according to High-voltage power lines and an electricity pylon next to a group of wind turbines on the Spanish island of Gran Canaria. – REUTERSPIC oDenmark’s Orsted cuts investment and capacity targets as challenges persist Henrik Andersen, chief executive of Denmark’s Vestas, the world’s largest maker of wind turbines. “Continued geopolitical volatility as well as slow permitting and insufficient grid build-out across markets are expected to cause uncertainty in 2024,” he said as the group scrapped its dividend and posted better-than-expected fourth-quarter results. Orsted, the world’s biggest offshore wind farm developer, trimmed its investment and capacity targets yesterday and paused dividend payouts as part of a major review. The Danish company, which last year found itself at the centre of a perfect storm for the offshore wind industry, lowered its target for power generation capacity by the end of the decade to 35-38 gigawatts (GW), from 50 GW previously. It also said it would reduce capital expenditure in the coming three years by 35 billion Danish crowns (RM24 billion), pause dividends for 2023-2025 and sell assets worth around 115 billion crowns towards 2030. The moves come less than a year after Orsted laid out ambitious plans to invest 475 billion Danish crowns to achieve its 2030 goal. The new plans are broadly in line with expectations among analysts and investors, who had been worried that the renewable energy firm would stick to its ambitious targets and opt to raise new capital. Orsted said its “business plan is fully financed without any need for raising new equity”. The company plans to invest 270 billion crowns towards the end of the decade. Of that, 130 billion crowns will be invested over the coming three years to achieve a target of 23 GW of installed power generation capacity by 2026. Orsted also said its chairman Thomas Thune Andersen will step down at the upcoming annual shareholder meeting on March 5. In November, Orsted ousted its finance and operations chiefs after reporting large financial losses on US projects. As part of efforts to reduce costs, Orsted will also reduce its workforce by 800 positions globally. – Reuters
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 18 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper WASHINGTON: US Treasury Secretary Janet Yellen said yesterday she is concerned about looming commercial real estate stresses on banks and property owners, but believes the situation is manageable with assistance from bank regulators. Yellen told a House Financial Services Committee hearing that refinancings of commercial real estate loans coming due amid higher interest rates and high vacancies due to shifting work patterns “is going to put a lot of stress on the owners of these properties”. Some banks also may come under stress due to lower demand for commercial real estate following the Covid-19 pandemic that shifted more work to home offices, but banking supervisors were “very focused” on helping banks manage these risks, Yellen said. “I’m concerned. I believe it’s manageable, although there may be some institutions that are quite stressed by this problem.” The multi-regulator Financial Stability Oversight Council is focused on commercial real estate and supervisory agencies are working closely with banks on ways the institutions can work with borrowers that have problems. “They’re, in some cases, working to make sure that loan loss reserves are built up to cover losses, that dividend policies are appropriate, that liquidity is adequate,” Yellen said of the bank regulators. Nearly a year after the failures of specialist lenders Silicon Valley Bank and Signature Bank shook confidence in regional banks, a fresh sell-off hit the sector last week as New York Community Bancorp reported problems in its commercial real estate portfolio, a cautionary sign of potential pain ahead. In the immediate aftermath of the Silicon Valley Bank failure, Yellen said the Treasury would safeguard deposits at failing banks large and small that threatened financial contagion. However, she later clarified that Treasury had not considered “blanket insurance” for all deposits without approval from Congress. Asked if she would do whatever is necessary to prevent a second wave of bank failures, Yellen declined comment on individual bank situations. “I would work with banking supervisors to make sure that we addressed anything that looked like it could create systemic risk.” She also said Congress should pass legislation to allow for regulation of stablecoins. These are a type of cryptocurrency designed to have a relatively fixed price, and are usually pegged to a commodity or currency. – Reuters Networks unite to create new sports streaming platform MIAMI: ESPN, Fox and Warner Bros Discovery have reached agreement on a new streaming platform for live sports content, the companies said yesterday. The platform would combine the sports offerings of the three networks in one product offering content from the top US leagues and is planned to be launched this autumn. The networks said in a statement that they had “reached an understanding on principal terms to form a new joint venture to build an innovative new platform to house a compelling streaming sports service”. The companies said that the formation of the package is subject to them reaching “definitive agreements”. The product is targeted at “cord-cutters” who prefer to subscribe to streaming services rather than traditional cable tv packages. Consumers would be able to bundle the product with existing broader streaming offerings from Disney+, Hulu and Max. The new platform would provide access to streaming platform ESPN+ as well as the main channels from ESPN, Fox and Warner Bros. It would include games from the NFL, NBA and Major League Baseball, Nascar, UFC, college sports, PGA Tour golf and international football, including the 2026 World Cup. While the new platform would offer plenty of sport for fans, it would not however be able to bring all the top games under one package. The NFL dominates ratings in the US and not all the games in the league would be included in the proposed new product. CBS, NBC and Amazon Prime Video also own rights to nationally broadcast NFL games and Google’s YouTube TV has the rights for the NFL’s Sunday Ticket service which offers access to all “out of market” games. – AFP Yellen concerned about US commercial real estate oBut Treasury secretary believes situation is manageable with help from bank regulators Ford beats earnings expectations despite rising costs NEW YORK: US automaker Ford topped earnings expectations in the fourth quarter of 2023 and is forecasting higher profits this year despite greater labour costs and losses in its electric vehicle segment, according to a financial report released yesterday. The company reported adjusted earnings per share of 29 cents for the fourth quarter, above analyst estimates, while revenue came in at US$46 billion (RM219 billion) for the period. For 2024, Ford expects earnings of US$10 billion to US$12 billion before interest and taxes, compared with US$10.4 billion reported in 2023. Ford’s latest results come after the auto giant, alongside General Motors and Stellantis, were hit by a six-week worker strike that has since been resolved. The company expects “higher expenses for labour and major product-refresh actions” this year. But chief operating officer Kumar Galhotra said the company “will land US$2 billion in cost reductions” across its global industrial system in areas like freight and manufacturing. For all of last year, Ford reported net income of US$4.3 billion and an 11% revenue increase to US$176 billion. Meanwhile, Ford’s Model e unit – involving its electric vehicle products – incurred a full-year loss of US$4.7 billion before interest and taxes. This reflects “an extremely competitive pricing environment, along with strategic investments in the development of clean-sheet, next-generation EVs”, the company said in its report. But Ford chief financial officer John Lawler said in a statement that EVs are “here to stay”. “Customer adoption is growing, and their long-term upside is central to Ford+,” he added, highlighting that the company is gathering customer insights by being an early mover in the sector. But with mainstream EV adoption taking place at a slower rate than anticipated, Ford earlier said it was deferring certain capital investments in the segment “until they’re justified by demand and prospects for acceptable returns”. Last week, General Motors reported higher quarterly profits, offsetting the hit from the worker strike thanks to robust vehicle pricing, amid strong demand in North America. – AFP WeWork co-founder wants to buy back firm NEW YORK: Adam Neumann, the co-founder of office space provider WeWork, is seeking to buy the company out from bankruptcy, five years after being ousted as CEO. According to a letter to WeWork seen by AFP, a lawyer for Neumann complained that he was awaiting answers since December about a potential investment. “We write to express our dismay with WeWork’s lack of engagement even to provide information to my clients in what is intended to be a value-maximising transaction for all stakeholders,” lawyer Alex Spiro wrote. Spiro also said his client was partnering with hedge fund Third Point to rescue the company out of bankruptcy, according to the letter that was dated on Monday. However, Third Point told US media it had held only “preliminary conversations” with Neumann and his property company Flow and had yet to commit to the project. WeWork went into bankruptcy in November with its major creditors set to take control of the company. At its height, WeWork was the biggest private renter of office space in Manhattan with co-working spaces in cities across the globe. Neumann was forced out of the company in 2019 with a US$1.7 billion (RM8 billion) exit package while the company’s value was slashed to US$8 billion. This was a far cry from its US$47 billion valuation ahead of an IPO that failed after investors soured on the company. The collapse of WeWork cost Japanese billionaire Masayoshi Son, the owner of investment powerhouse Softbank, billions of dollars and served as a cautionary tale on giving too much leeway to headline-grabbing entrepreneurs. – AFP Yellen testifying before the House Committee on Financial Services in Washington. – AFPPIC
BIZ & FINANCE BIZ & FINANCE THURSDAY | FEB 8, 2024 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shalll not be liable or responsible for any consequences resulting from usage of the information. HARTALEGA reported 9M’24 results, which were below our expectations. Q3’24 net profit declined by 19.2% to RM22.4 million. The variance was largely attributed to lower-thanexpected volumes. Q-o-Q revenue dipped 8.1% to RM415.6 million due to lower sales volume of about 2.8% and a drop in ASP of circa-5.1%. We gather that the group encountered logistical challenges (600 million pcs) from the shipping constraints amid the ongoing Red Sea crisis. Overall, plant utilisation rate dropped to 43% (vs. 44% in Q2’24). 9M’24 profit before tax declined to RM19.9 million as compared to RM140.7 million in 9M’23. The weaker performance was attributed to the supply chain inventory adjustment as sales volumes and ASP declined by 20.4% and 12.5% respectively. We reduced our FY24 earnings estimates to RM54.6 million (vs. RM123.4 million previously) after lowering our sales volumes assumptions by 21.4% to 18.7 billion gloves. Meanwhile, we maintain our FY25/26 earnings assumptions. Into Q4’24, we expect sales volumes to increase by about 11% Q-o-Q as the bulk of 600 million pcs (shipping constraints) was shipped in January. Management shared that Hartalega is unable to meet the current 2 billion orders per month (vs. 1.5 billion per month in Q3’24) due to the decommissioning exercise (product transfer to NGC, deployment of 1.6k employees) of Bestari Jaya, which will be completed by Q1 CY24. Positively, we understand that the group will catch up (getting more lines up) by endMarch. Meanwhile, ASP is expected to increase slightly Q-o-Q due to the higher natural gas cost (+4%) in Jan-24. Overall, we believe that Harta’s performance will improve, driven by higher volumes, better efficiency and cost savings from the decommissioning of Bestari Jaya. We maintain our TP for Hartalega at RM3.05/share based on 2.2x FY25 P/B. Reiterate our BUY recommendation on the stock. KLK is undertaking an unconditional voluntary take-over offer to acquire the remaining 4.57% equity shares in KSN at a cash consideration of RM3.42/sh or RM137.6m. This represents a 10.3% premium to the previous offer price of RM3.10/sh undertaken by KLK in 2021, and a 67.6% premium to KSN’s audited net assets of RM2.04/sh. A minority shareholder, Citadel Multi-Asset Master Fund Ltd, who holds 4.13% equity share in KSN, has given its irrevocable undertaking to accept the offer. According to the announcement, this offer price represents an implied Price-to-Book Value (PBV) of 1.7x and implied Enterprise Value (EV)/planted hectare of RM48,074. These financial matrixes appear to be at discounts to the offer made back in 2021 whereby the privatisation offer price of RM3.10/sh implied a PBV of 2.02x, and EV/ha of RM53,074. By our estimate, this deal will cost KLK up to RM137.6 million (assuming 100% acceptance) in cash; a small outlay relative to its RM30.1 billion asset size. KLK will fund this deal via internal cash reserves. By our estimate, this will only marginally raise KLK’s proforma FY23 net gearing to 47.8% from 46.9%. We are keeping our earnings forecasts. There are several risk factors for our earnings estimates, target price and rating for KLK. Key risks to the palm oil sector and KLK are: (i) weather anomalies resulting in poorer output growth; (ii) lowerthan-expected CPO price; (iii) negative policies imposed by import countries; (iv) unfriendly policies imposed by the Malaysian and Indonesian governments on upstream or downstream segments; (v) sharply lower crude oil prices; and (vi) weaker competing oil prices. HOLD with an unchanged TP of RM21.30. WE understand that SLP’s exports of kitchen bags and garbage bags, primarily to Japan, have improved by 20% YoY in terms of volume. This is on the back of a vibrant leisure and hospitality sector on a tourism boom in Japan backed by a weak Japanese Yen. Nonetheless, the numbers are still shy of pre-pandemic levels. In FY22, kitchen bags and garbage bags constituted 20% and 10% of SLP’s total revenue, respectively. We understand that SLP is close to securing a new buyer for its MDO-PE film, i.e. a Vietnam-based exporter of frozen food to Europe. This is one of the many tell-tale signs that SLP’s fully recyclable MDO-PE film is gaining traction, especially, from domestic and Asean converters catering to the European market, as exporters to Europe rush to comply with the European Packaging and Packaging Waste Directive (94/62/EC), which requires that by end-2025, at least 65% by weight of all packaging waste (comprising paper, cardboard, plastic and glass) must be recyclable, with a specific target of 50% for plastic waste. Being a first mover in the production of MDO-PE film in the region, it faces limited competition at present. We like SLP for its: (i) product mix which focuses on highmargin, non-commoditised products such as kangaroo pouches and mono films, and (ii) robust cash flows and a strong balance sheet (a net cash position), enabling consistent and generous dividend payments. However, we are concerned over an extended slowdown in the global economy which will weigh down on SLP’s earnings. We maintain our forecasts, TP of RM0.96 and MARKET PERFORM call. FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.8270 4.6930 4.6830 1 Australian Dollar 3.1710 3.0450 3.0290 1 Brunei Dollar 3.5930 3.4910 3.4830 1 Canadian Dollar 3.5770 3.4820 3.4700 1 Euro 5.2030 5.0360 5.0160 1 New Zealand Dollar 2.9560 2.8480 2.8320 1 Singapore Dollar 3.5930 3.4910 3.4830 1 Sterling Pound 6.0950 5.9040 5.8840 1 Swiss Franc 5.5380 5.4130 5.3980 100 UAE Dirham 133.0700 126.2100 126.0100 100 Bangladesh Taka 4.4850 4.1930 3.9930 100 Chinese Renminbi 67.6300 64.7900 N/A 100 Danish Krone 71.5200 65.8300 65.6300 100 Hongkong Dollar 62.4100 59.3300 59.1300 100 Indian Rupee 5.9100 5.5500 5.3500 100 Indonesian Rupiah 0.0318 0.0288 0.0238 100 Japanese Yen 3.2700 3.1680 3.1580 100 New Taiwan Dollar N/A N/A N/A 100 Norwegian Krone 46.8700 43.0900 42.8900 100 Pakistan Rupee 1.7600 1.6500 1.4500 100 Philippine Peso 8.7200 8.2200 8.0200 100 Qatar Riyal 134.0100 127.2200 127.0200 100 Saudi Riyal 130.2700 123.6700 123.4700 100 South Africa Rand 26.5900 24.0100 23.8100 100 Sri Lanka Rupee 1.5800 1.4500 1.2500 100 Swedish Krona 47.4400 43.2100 43.0100 100 Thai Baht 14.1900 12.5900 12.1900 Exchange Rates Source: Malayan Banking Bhd/Bernama Ringgit and other Asian currencies rise against dollar KUALA LUMPUR: The ringgit closed higher against the US dollar yesterday in tandem with regional currencies as the greenback retreated from recent three-month peaks although staying firm hovering just below its strongest levels since early November. The Asian currencies were also supported by the expectation of China’s strong economic measures to support its ailing stock market, dealers said. At 6pm, the ringgit rose to 4.7570/7645 against the US dollar from Tuesday’s closing rate of 4.7655/7700. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was generally weaker against the US dollar yesterday, with the local unit trading at a height of RM4.7655 against the greenback in the morning session. However, the local currency gained its traction towards the end of the day, he shared. He also noted that Malaysia’s Industrial Production Index (IPI) came in weaker than expected, and slid by 0.1% in December owing to a persistent decline in the export-oriented manufacturing sector. Meanwhile, the ringgit traded lower against a basket of major currencies. It decreased vis-a-vis the Japanese yen to 3.2159/2212 from 3.2050/2082 at Tuesday’s close, depreciated against the British pound to 6.0095/0190 from 5.9769/9825 previously, and slipped versus the euro to 5.1233/1314 from 5.1124/1173. The local note was also traded lower versus other Asean currencies. The ringgit declined against the Singapore dollar to 3.5415/5474 versus 3.5397/5433 on Tuesday and was easier versus the Thai baht to 13.3650/3917 from 13.3544/3726. Infobip forges partnership with China Mobile’s Malaysian unit KUALA LUMPUR: Infobip, a global cloud communications platform, has partnered with China Mobile International (Malaysia) Sdn Bhd (CMI Malaysia). CMI Malaysia is a subsidiary of China Mobile International, the world-leading international telecommunications company. With the partnership, Infobip and CMI Malaysia will exchange Application to Person (A2P) SMS traffic and leverage cloud solutions to help businesses solidify their current offerings and enhance customer service of both sides. Infobip co-founder and CEO Silvio Kutić said that their partnership with CMI Malaysia allows them to jointly provide a diverse array of solutions to their customer base, backed by Infobip’s expertise in AI chatbots and cutting-edge CPaaS platform. “With over 800 direct connections to global telecoms, we are well-positioned to support CMI Malaysia in deeply engaging their customers by leveraging our robust Customer Data Platform, which enables refined segmentation and profiling. This partnership represents our commitment to delivering superior solutions that cater to the evolving demands of enterprise customers,” he added. CMI Malaysia managing director Hew Chee Chung said that the partnership between Infobip and CMI Malaysia is to further strengthen the A2P SMS business between both parties, at the same time it allows Infobip to tap into their extensive global network resources and cloud services that can be value adding to Infobip’s customers. Looking forward, he added they expect increase in business collaboration opportunities, that can be executed together on identified services for specific key customers both in Malaysia and globally. SLP Resources Bhd Market Perform. Target price: RM0.96 Kuala Lumpur Kepong Bhd Hold. Target price: RM21.30 Hartalega Holdings Bhd Buy. Target price: RM3.05 Source: Bloomberg, TA Securities Source: Maybank Investment Bank Feb 7, 2024: RM22.04 Source: Kenanga Research Feb 7, 2024: RM2.58 Feb 7, 2024: RM0.95
LYFE LYFE THURSDAY | FEB 8, 2024 22 Collaborations with organisations such as KL Pooch Rescue and Yayasan Sime Darby Arts Festival stand out as highlights. “Teaching calligraphy for charity and connecting with diverse communities has been incredibly rewarding,” Tan expressed. “These collaborations serve as a testament to the transformative power of calligraphy beyond its aesthetic appeal.” Looking towards the future, Tan aims to introduce the beauty of calligraphy to the younger generation. She advocates for a revival of cursive writing in school curricula, emphasising the significance of this art form. More than a partnership, KLigraphy embodies a sense of community that Tan actively fosters. “I believe in community over competition,” she affirmed. The calligraphy community in Malaysia, although small, shares tips, jobs and supplies, creating a collaborative and supportive environment within the larger artistic landscape. As a teacher of calligraphy, Tan finds joy in witnessing students embark on their calligraphy journey. “It’s always fun to hear students comment about how easy it looks to write calligraphy, but Inside the artistic journey of Tan and KLigraphy. – PICS COURTESY OF INEZ TAN Dancing on paper S TEP into the intricate world of calligraphy, where each stroke tells a story and every curve is a dance of elegance on paper. KLigraphy co-founder Inez Tan provided a fascinating glimpse into this artistic world in an exclusive interview with theSun. Tan’s odyssey into the world of calligraphy began at a crossroads in her career. Armed with a diploma in graphic design and advertising, she stumbled upon the mesmerising art of calligraphy while browsing the internet during a hiatus between jobs. “I saw a GIF of someone writing in gold ink and that moment sparked a journey of self-discovery,” recalled Tan. With a thirst for creative expression, she embarked on a path of self-study, navigating the intricacies of calligraphy through trial and error. As Tan honed her skills, traditional scripts, especially copperplate calligraphy, became her muse. “Learning classic scripts like Spencerian and Italic calligraphy has broadened my perspective,” she shared. Her artistic approach draws inspiration from acclaimed penmen, both international and domestic, including Nina Tran, Eleanor Winters and Master Penman Michael Sull, weaving a rich tapestry of influences into her distinctive style. Running a calligraphy business in an unexplored local market posed initial challenges for Tan. “Teaching calligraphy workshops since 2015 has helped showcase the value of calligraphy arts to the public,” she reflected. The early days were marked by perseverance, but through dedication and a commitment to educating the community, Tan’s one-person show evolved, with her mother joining to provide operational support — a pivotal moment in her entrepreneurial journey. Productive collaborations KLigraphy’s foray into collaborations has not only showcased Tan’s artistic prowess but also contributed to the growth and appreciation of calligraphy within the broader community. oThe artistry and vision of Tan’s calligraphy █ BYTHASHINE SELVAKUMARAN The influencer has a niche in creating customised greetings for clients. when they try it, it’s pretty hard,” she remarked. Beyond the initial challenges, she finds reward in students mastering the art and discovering the therapeutic nature of calligraphy, offering a serene escape from the digital world. “It’s fun to see students try out calligraphy in a short 10-minute class,” she said. Adding a personal touch Reflecting on memorable projects, Tan recalled a recent collaboration with a luggage brand. Conducting mini workshops for the store opening and personalising luggage tags, were intense, but the end result was immensely satisfying. Providing on-site calligraphy services for events adds another layer to KLigraphy’s offerings. Tan She has done personilsed art for a number of brands such as Saint Laurent. Tan wants to share the art of calligraphy with young people. Tan is proud to see her work adorn different types of products. Chinese New Year greeting card by Tan. recounted an event in 2022 where she engraved cologne bottles and calligraphed gift boxes for a perfume brand. “Customising items for customers, especially for special occasions, adds a personal touch that brings joy to recipients,” she shared. Amid her myriad projects, Tan has developed a preference for specific tools — a testament to the artistry involved. “An oblique pen holder with nibs. I use that for almost 80% of the projects done so far,” she revealed. This versatile tool allows Tan to explore a spectrum of colours and metallic inks, contributing to the unique charm of her creations. For those aspiring to embark on a calligraphy journey, Tan offered valuable advice. “Joining a class is a great way to start,” she recommended. Additionally, online resources like the International Association of Master Penmen and Teachers of Handwriting can provide a wealth of knowledge. Tan also suggests exploring Czip Lee, Stickerrific and Art Friend for purchasing quality calligraphy supplies. Spreading goodwill through calligraphy As the Chinese New Year approaches, Tan finds herself immersed in a flurry of activity, utilising her remarkable calligraphy skills to craft exquisite greeting cards for various brands. Her artistry takes centre stage as she meticulously writes the names for these special cards, adding a personalised touch that elevates the gifting experience for guests. In the spirit of the festive season, Tan embraces the opportunity to extend warm wishes for a joyous Chinese New Year to everyone celebrating. This harmonious blend of creativity and cultural celebration showcases the versatility of her craft, not only as a form of artistic expression but also as a means of spreading goodwill during this auspicious time. Tan’s journey with KLigraphy is about fostering a sense of community, inspiring the next generation, and weaving the art of calligraphy into the fabric of modern life. As her artistic journey continues to unfold, Tan’s commitment to community, creativity and the transformative power of calligraphy shines as a beacon in Malaysia’s vibrant artistic landscape. Instagram: @inezcalligraphy
LYFE LYFE THURSDAY | FEB 8, 2024 23 What to watch on Netflix this CNY AFTER the feasting, merry-making and friendly card games have taken place, many will want to just chill out and catch some quality entertainment this Chinese New Year (CNY). With the festivities taking place over a long weekend, there is ample opportunity for TV addicts to catch up on some quality viewing time. Streaming platforms have become hugely popular among Malaysians due to the quality content and the convenience of watching programmes at one’s leisure. Netflix has lined up some delectable programmes to entice viewers over the impending holidays. Here is what to look out for. The Dragon Prince It is the Year of the Dragon, so the first recommendation is The Dragon Prince. The sixth season of this hugely popular animated series is expected to drop later this year, so what better time to catch up on previous episodes? Set in a fantasy world on the fictional continent of Xadia, the story centres on the human princes Callum and Ezran and the Moonshadow Elf Rayla, who seek to end the thousand-year-old conflict between the human kingdoms and the elves while taking care of the infant Sky Dragon, the Dragon Prince. The series has been renewed for a seventh and final season that will bring the series to its conclusion. The series has earned critical acclaim for its story, themes, vocal performances, animation and humour. Season six of the Dragon Prince is expected to be available on Netflix later this year. - FACEBOOK / THE DRAGON PRINCE oZone out this upcoming holidays with choice offerings on streaming platform █ BY R BALA Let’s Talk ABout Chu details the travails of modern day relationships. - NETFLIX Good family fun with How to Train Your Dragon 2. - 20TH CENTURY FOX How to Train Your Dragon 2 Keeping with the dragon theme, viewers can tune into Netflix to revisit this hugely popular animated feature, which was first released in 2014. Available on Feb 1, this is the sequel to the 2010 movie and is set five years after the events of the first film. The film follows twenty-year-old Hiccup and his friends as young adults as they encounter Valka, Hiccup’s long-lost mother and Drago Bludvist, a madman who wants to conquer the world. Loosely based on the book series of the same name by Cressida Cowell, this DreamWorks Animation feature was nominated for an Oscar and won the Golden Globe Award for Best Animated Feature. The Brothers Sun Let us get patriotic this CNY by tuning into the action-packed thriller starring Malaysia’s very own Michelle Yeoh. The series has been generating rave reviews since it premiered early last month and this extended break is a great opportunity for Malaysian viewers to see what the fuss is all about. The plot revolves around brothers Bruce and Charles Sun. The former leads an idyllic, normal Californian lifestyle and has no recollection of his past life in Taipei due to amnesia. His world is turned upside down when his hardened criminal sibling Charles drops by for a visit after an assassination attempt on their father. The discovery that his family is deeply rooted in the criminal underworld allows for plenty of comedic moments as well. The Brothers Sun stars Yeoh (centre) as Mama Sun. - FACEBOOK / MICHELLE YEOH Let’s Talk About Chu Funny, touching and a very up-to-date take on modern relationships, Let’s Talk About Chu follows the daily exploits of the titular Chu Ai — a wax technician by day and a sex education vlogger by night. Her motto is a very 21st century “only sex, no love”, which is tested to the limits in her physical relationship with Ping Ke. The series details the challenges Chu faces within her family and societal expectations as she tries to lead a life without romance or emotional connections. Will she ever have a relationship that goes beyond the mere physical and will her voyage of self-discovery have a happy ending? Wish Dragon As the Year of the Dragon dawns, what could be more fitting than indulging in the cinematic delight of Wish Dragon? This animated gem, which debuted in 2021, though unrelated to the Lunar New Year festivities, introduces us to Din, a young Chinese protagonist, who encounters Long, a wish-granting dragon. Together, they embark on a journey where Din harnesses Long’s magical abilities to reunite with a cherished childhood companion. Wish Dragon’s magical tale of friendship and adventure. - IMDb Reunion Dinner In this thrilling 2022 rom-com, two dynamic advertising executives, teetering on the edge of matrimony, are unexpectedly thrown into a whirlwind. Their client demands a livestream of their joint reunion dinner on Lunar New Year’s Eve. But here is the twist — their families have never met and with Chaoyang estranged from his mother, he concocts a daring plan to rent a fake family. Sparks fly and hilarity ensues as they navigate the chaos of this high-stakes situation. Tigertail Immerse yourself in the vibrant tapestry of New York City with this poignant drama centering on immigrant Pin-Jui. As he unravels the intricate threads of his past life in Taiwan for his estranged daughter, Angela, get ready for a journey filled with nostalgia, heartfelt revelations and a rollercoaster of emotions. With a backdrop of a Chinese New Year’s celebration and captivating flashbacks, Alan Yang’s debut film, Tigertail, promises an unforgettable experience. A rollercoaster ride in the 2022 rom-com frenzy. - IMDB Yang’s Tigertail delivers heartfelt drama and nostalgia. - NETFLIX
LYFE LYFE THURSDAY | FEB 8, 2024 24 rhythm or flow of the performance, which is dictated by the other half of the troupe, its music and instruments. The drums, cymbals and gongs have to move through each other, like a river cascading into a waterfall, to bring the entire picture together into a single, harmonious image. Here are some of the top lion dance troupes in Malaysia that have long honed their craft while upholding the authenticity and rich history of the art form. Each troupe’s online site is provided for those interested in enhancing their Lunar New Year celebrations with a spectacular lion or dragon dance performance. Hong Yi Dragon and Lion Dance Association From its humble origins as an NGO, the Hong Yi Dragon and Lion Dance Association has transformed into a versatile cultural service provider, catering to a wide array of events ranging from intimate family gatherings to elaborate corporate functions. Moreover, the association boasts a diverse range of customisable performances, meticulously crafted to meet the unique requirements of each event. Whether it is a traditional lion dance to bring prosperity and good fortune to a household or a dynamic dragon dance spectacle to enhance the ambience of a corporate event, the Hong Yi Dragon and Lion Dance Association delivers exceptional performances tailored to specific needs. For more information, visit facebook.com/hongyidragonlion Junwai Dragon and Lion Dance Renowned for its captivating performances, Junwai Dragon and Lion Dance is a premiere choice for events of any scale. Similar to the Hong Yi Dragon and Lion Dance Association, Junwai Dragon and Lion Dance excels at providing dynamic entertainment tailored to various occasions. In addition to traditional performances, Junwai Dragon and Lion Dance stands out with its innovative LED lion dance shows. These visually stunning displays READ OUR HERE /thesun Malaysian Paper Dynamic dragon and liondancers dancers THE cacophony of pounding drums and clashing cymbals is very much part of the Chinese New Year festivities in Malaysia. Although commonplace, the sight of lion and dragon dance performers executing acrobatic moves will always captivate a crowd, no matter the age, gender or ethnicity. When looking for lion and dragon dance troupes, authenticity is first and foremost. The performance is, after all, rooted in upholding the traditions and cultural heritage of Chinese culture and as such, it has to have a genuine show that not only captivates the audience but also reflects the rich history the performance has blossomed from. There is also the skill and experience of the dancers to take into consideration. Lugging the costumes and props around is no joke for the untrained and performers need years of training to pull off the dances with impeccable coordination and precise synchronisation. Each part of the troupe has to move in tandem with each other to create a visually spectacular performance. This leads to the oLong-running troupes in Malaysia steal show █ BY MARK MATHEN VICTOR Though not as common as lion dances, dragon dances are just as impressive. - JUNWAI DRAAGON AND LION DANCE KSK is home to champions in lion and dragon dances. - KUN SENG KENG LION AND DRAGON DANCE ASSOCIATION The Sheng Wai troupe has done many performances in Malaysia. - SHENG WAI DRAGON AND LION DANCE The Muhibah troupe is known for its diversity. - MUHIBAH LION DANCE TROUPE combine the rich cultural heritage of lion dance with modern technology, creating a mesmerising spectacle that dazzles audiences of all ages. Whether it is a small gathering or a grand celebration, Junwai Dragon and Lion Dance offers unparalleled skill and expertise to elevate any event to new heights. For more information, visit junwai.com.my Heng Kok Dragon and Lion Dance Distinguished by numerous accolades, the Heng Kok Dragon and Lion Dance Company has established itself as a leading authority in the realm of lion dance, revered for its commitment to excellence and performance prowess. One aspect of its performances that consistently garners acclaim is its breathtaking acrobatic high-pole routines. Spectators are consistently awestruck by the gravity-defying feats executed by the performers as they navigate the skies with precision and agility. Indeed, there is nothing quite like witnessing these daring acrobatics unfold high above the ground, leaving audiences spellbound and breathless. For more information, visit facebook.com/hengkokliondance Kun Seng Keng Lion and Dragon Dance Association Founded in 1988 by the passionate lion dance aficionado Tan Chong Hin, the Kun Seng Keng (KSK) Lion and Dragon Dance Association has evolved from its humble beginnings into a powerhouse in the world of traditional Chinese performance arts. Within a remarkably short span of three years, Tan propelled KSK to national acclaim by clinching its inaugural national title. By 1996, KSK’s dedication to preserving and promoting cultural heritage earned it official recognition as a cultural association. Throughout its illustrious history, KSK has nurtured and honed the talents of countless performers, boasting an impressive roster of 70 national champions and 60 international champions. This remarkable feat stands as a testament to KSK’s unwavering commitment to excellence and its enduring legacy in the lion and dragon dance community. For more information, visit facebook.com/kunsengkeng Muhibah Lion Dance Troupe In a surprising turn of events early last year, the Muhibah Lion Dance Troupe took social media by storm, captivating audiences with their unique and inclusive approach to traditional performance art. Setting themselves apart from conventional lion dance troupes, Muhibah embraces diversity by showcasing dancers from Malaysia’s rich tapestry of ethnicities — a quality reflected in its very name. Derived from the Malay word muhibbah, meaning friendship or camaraderie, the troupe’s moniker embodies its core ethos of unity amid diversity. Comprising Malays, Indians and even several foreign members, Muhibah symbolises the harmonious coexistence and shared cultural heritage of Malaysia’s multicultural society. For more information, visit facebook.com/MuhibahLionDance Sheng Wai Dragon and Lion Dance Similar to the esteemed mentioned earlier, the Sheng Wai Lion Dance Troupe commands a significant presence and reputation, both domestically and on the global stage, owing to its consistent participation in events and competitions. Renowned for its exceptional talent and expertise, Sheng Wai is a sought-after troupe, frequently gracing corporate events with its captivating performances. Audiences are consistently mesmerised by the troupe’s masterful displays of skill and agility, further solidifying Sheng Wai’s status as a premier lion dance ensemble. For more information, visit shengwai.com.