TheEdge 030822

MRT3 PROJECT ESTIMATED TO COST RM50.2 BIL p3

WEDNESDAY, AUGUST 3, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 420/2022

CEOMorningBrief
HOME: TNB mulls plan to retire coal plants ahead of schedule to fast-track decarbonisation initiative p3
Dewan Rakyat refers tobacco control bill to Parliament’s Special Select Committee p4
Govt eyes minimum RM4 bil extra revenue from Cukai Makmur for 2022 p5
WORLD: US to stop TSMC, Intel from adding advanced chip fabs in China p15
UK insolvencies surge to near 13-year high as Covid-19 support ends p16

PELOSI ARRIVES
IN TAIWAN

She is the highest-ranking American politician
to visit the island in 25 years

Report on Page 2.

WEDNESDAY AUGUST 3, 2022 2 THEEDGE CEO MORNING BRIEF

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Pelosi arrives inTaiwan, voicing US
‘solidarity’ as China fumes

TAIPEI/BEIJING/SHANGHAI/WASH- BY YIMOU LEE, SARAH WU, cameras on.The motorcade drove straight
INGTON (Aug 2): US House of Repre- FABIAN HAMACHER, YEW LUN TIAN, into the hotel’s parking lot.
sentatives Speaker Nancy Pelosi arrived PATRICIA ZENGERLE, TONY MUNROE
in Taiwan late on Tuesday, on a trip she White House national security spokes-
said demonstrates American solidarity with & MICHAEL MARTINA person John Kirby said after Pelosi’s arrival
the Chinese-claimed self-ruled island, but Reuters that the United States “is not going to be
China condemned this first such visit in 25 intimidated” by threats or bellicose rheto-
years as a threat to peace and stability in BLOOMBERG ric from China. Kirby said the visit is not a
the Taiwan Strait. violation of either any sovereignty issues or
The People’s Liberation Army Eastern America’s longstanding “one-China policy”.
Pelosi and the rest of her delegation dis- Theatre Command announced that it will
embarked from a US Air Force transport conduct joint air and sea drills nearTaiwan “There’s no reason for this visit to be-
plane at Songshan Airport in downtown startingTuesday night, and test-launch con- come a spurring event for a crisis or con-
Taipei, after the nighttime landing on a ventional missiles in the sea east ofTaiwan. flict,” Kirby said.
flight from Malaysia to begin a visit that
risks pushing US-Chinese relations to a new Pelosi is on a tour of Asia that includes Pelosi, 82, is a close ally of US President
low.They were greeted byTaiwan’s foreign announced visits to Singapore, Malaysia, Joe Biden, both being members of the Dem-
minister, JosephWu, and Sandra Oudkirk, South Korea and Japan. Her stop inTaiwan ocratic Party, and has been a key figure in
the top U.S. representative in Taiwan. was unannounced but widely anticipated. guiding his legislative agenda through the
US Congress.
“Our congressional delegation’s visit to In a Washington Post opinion piece released
Taiwan honors America’s unwavering com- shortly after she landed, Pelosi outlined her Four sources said Pelosi was also sched-
mitment to supportingTaiwan’s vibrant de- reasons for visiting, praising Taiwan’s com- uled on Wednesday afternoon to meet a
mocracy,” Pelosi said in a statement shortly mitment to democratic government while group of activists who are outspoken about
after landing.“America’s solidarity with the criticizing China as having dramatically in- China’s human rights record.
23 million people ofTaiwan is more impor- creased tensions withTaiwan in recent years.
tant today than ever, as the world faces a OnTuesday night,Taiwan’s tallest build-
choice between autocracy and democracy.” “We cannot stand by as the CCP pro- ing,Taipei 101, lit up with messages includ-
ceeds to threaten Taiwan - and democracy ing:“Welcome toTaiwan”,“Speaker Pelosi”,
Taiwan’s President Tsai Ing-wen will itself,” Pelosi said, referring to the Chinese “Taiwan (heart) USA”.
meet with Pelosi, who is second in the line Communist Party.
of succession to the US presidency and a China views visits by US officials toTai-
long-time critic of Beijing, on Wednesday Pelosi also cited China’s “brutal crack- wan as sending an encouraging signal to the
morning and then have lunch together, the down” against political dissent in Hong pro-independence camp on the democratic,
presidential office said. Pelosi, travelling with Kong, as well as its treatment of Muslim self-governed island. Beijing considersTai-
six other American lawmakers, is the first US Uyghurs and other minorities, which the wan to be part of its territory and has never
House speaker to visit Taiwan since 1997. United States has deemed genocide. renounced using force to bring the island
under its control.Taiwan rejects China’s sov-
China immediately condemned Pelosi’s As Pelosi’s motorcade approached the ereignty claims and says only its people can
visit, with the foreign ministry saying it seri- hotel, escorted by police cars with flash- decide the island’s future.
ously damages peace and stability in theTai- ing red and blue lights, scores of supporters
wan Strait, “has a severe impact on the polit- cheered and ran towards the black vehicles The United States has no official diplo-
ical foundation of China-US relations, and with their arms outstretched and phone matic relations withTaiwan but is bound by
seriously infringes upon China’s sovereignty American law to provide the island with the
and territorial integrity.”The ministry said it means to defend itself.
lodged a strong protest with the United States.
US stocks struggled for gains and the
Chinese warplanes buzzed the line di- dollar and gold rallied onTuesday, amid the
viding the Taiwan Strait before her arrival. simmering US-China tensions overTaiwan.
The Chinese military has been put on high Read the full story
alert and will launch “targeted military op- Read also: This is how China could hit
erations” in response to Pelosi’s visit, the back over Pelosi’s Taiwan visit
defence ministry said.

wednesday august 3, 2022 3 TheEdge CEO morning brief

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MRT3 project
estimated to cost

RM50.2 bil

by Shazni Ong
theedgemarkets.com

KUALA LUMPUR (Aug 2): The to- struction, with a detailed breakdown of be interchange stations with the eight ex-
tal cost of the Mass Rapid Transit Line the amount, and whether the Government isting rail lines in the Klang Valley.
3 (MRT3) project is estimated to be as will seek parliamentary approval for the More parliament stories:
much as RM50.2 billion. implementation of the MRT3. Hire workers from India and Pakistan,
minister tells Malaysian planters
In a written parliamentary reply on Aug The Government on March 4 agreed
1 (Monday), which was uploaded on Par- to the implementation of the MRT3 pro- No specific assets liquidation carried
liament's website, the breakdown com- ject, which will complete the existing pub- out to cover withdrawal of EPF
prised RM34.3 billion for construction lic transport infrastructure in the Klang contributions — Tengku Zafrul
cost, RM8.4 billion for land acquisition Valley by providing integrated, affordable
cost, RM5.6 billion for project manage- and efficient services for the comfort and
ment cost, and the remaining RM1.9 bil- convenience of the people.
lion for other costs.
The proposed MRT3 route is around
“However, the overall cost of the pro- 51km, with 31 stations, of which 10 will
ject will be finalised after the open tender
process is completed,” said Finance Min-
ister Tengku Datuk Seri Zafrul Abdul
Aziz in reply to a question by Lembah
Pantai Member of Parliament Ahmad
Fahmi Mohamed Fadzil.

Fahmi had asked the finance minister
to state the total cost of the MRT3 con-

KUALA LUMPUR (Aug 2):Tenaga Na- TNB mulls plan This includes seeking potential collab-
sional Bhd (TNB) is exploring the viabil- to retire coal orators to further the development of hy-
ity of retiring its coal plants, especially the plants ahead drogen as a viable clean source of energy,
one at Kapar Energy Ventures (KEV) in of schedule he said.
2028-2029, a year before the expiration to fast-track
of its power purchase agreement (PPA), Baharin saidTNB is committed to turn-
in order to hasten the transition process to decarbonisation ing GenCo around in terms of its envi-
clean energy as it eyes a “significant share” initiative ronmental, social and governance (ESG)
of the RM80 billion market by 2050. performance to become a greener power
Bernama generator.
“We hope to start with Kapar Ener-
gy Ventures (KEV) and are exploring the the edge file photo “As demand for clean energy increas-
viability of retiring the 1,400 MW plant es with the energy transition, we project
up to a year ahead of its PPA expiration the value of the clean energy market to be
subject to shareholders’ agreement and an estimated RM65 billion to RM80 bil-
approvals from the relevant authorities lion, and we intend to capture a significant
and regulators. share of the market, about RM40 billion,
by 2050,” he continued. “Through these
“As for repowering plants with new deliberate steps to increase its enterprise
technology, we have recently received a value and sustainability position, we are
letter of intent to allow the repowering of also staying open to the possibility of an
our 1,400 MW gas-powered plant in Paka, initial public offering (IPO) for GenCo,
which we intend to make hydrogen-ready should the opportunity come up.”
by 2029,” president and chief executive
officer Datuk Baharin Din said during an Read also:
editors briefing on Tuesday (Aug 2). TNB to set up charging points for EVs
along PLUS highways
TNB is also actively seeking to build
strategic alliances with technology part- After UK,TNB bids for more RE
ners who are able to provide technology, projects in Europe
capability, and capital synergy to position
TNB Power Generation Sdn Bhd (GenCo)
as a greener and more sustainable player
in the power generation sector, he added.

wednesday august 3, 2022 4 TheEdge CEO morning brief

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KUALA LUMPUR (Aug 2):The Dewan Dewan Rakyat “This is to examine Section 9 (enforce-
Rakyat on Tuesday (Aug 2) approved the refers tobacco ment) in the Bill and suggest any improve-
proposal for the Control ofTobacco Prod- control bill to ments if necessary, subject to the law in
ucts and Smoking Bill 2022 to be referred Parliament’s force, besides examining the clauses relat-
to the Parliament’s Special Select Com- Special Select ing to penalties for offences in the Bill and
mittee (PSSC). suggest any improvements if necessary.
Committee
Lawmakers unanimously approved to “Also to examine the suggestions for
refer the Bill, which is currently at the by Shazni Ong improvements raised by members of the
second reading stage, after it was debated theedgemarkets.com Dewan Rakyat in the debate at the poli-
by 12 Members of Parliament (MPs) over cy level of the Bill, as well as the recom-
two days from Monday (Aug 1). angor MP Datuk Seri Dr Dzulkefly Ahmad, mendations that have been submitted by
Tuaran MP Datuk SeriWilfred MadiusTan- PSSC on Health, Science and Innovation,
Health Minister Khairy Jamaluddin, gau, Penampang MP Datuk Ignatius Darell as well as women and children affairs and
who wrapped the session, resubmitted the Leiking and Jerlun MP Datuk Seri Mukhriz social development, in relation to this Bill,”
motion of the Bill and announced that Mahathir from the opposition bloc make up he said.
13 MPs from the government and the the rest of the PSSC members.
opposition bloc will be members of the Khairy also said that the PSSC will have
PSSC, which will make recommendations Khairy explained that the PSSC may to prepare a statement containing proposed
towards fine-tuning the Bill. invite any party such as MPs, legal and improvements to the Bill for the purpose of
constitutional experts, non-governmental regulating tobacco products, cigarette in-
Besides Khairy acting as the PSSC organisations and civil society as well as gredients, tobacco substitute products or
chairman, other members from the gov- other individuals to attend PSSC meet- smoking devices within one month.
ernment bloc include Baling MP Datuk ings from time to time.
Seri Abdul Azeez Abdul Rahim, Parit MP He added that the PSSC can extend
Datuk Mohd Nizar Zakaria, Pengerang the review period, if necessary, but must
MP Datuk Seri Azalina Othman, Masjid not exceed the date of the first day of the
Tanah MP Datuk Mas Ermieyati Samsu- upcoming third session of the fifth term of
din, Pasir Mas MP Ahmad Fadhli Shaari the 14th Parliament session ahead.
and Sibuti MP Lukanisman Awang Sauni. Read the full story

Bandar Kuching MP Dr KelvinYii, Sun-
gai Buloh MP Sivarasa Rasiah, Kuala Sel-

KUALA LUMPUR (Aug 2):The ringgit Ringgit cuts losses Singapore dollar vs ringgit
cut losses against the Singapore dollar at against Singapore for the past 1-year
3.2288 at 5pm on Tuesday, after the cur- dollar after pair
rency pair minted a new record exchange mints new record 3.25
rate of 3.2393 earlier on the same day. 3.2288
of 3.2393
Compared to Monday’s closing price 3.20
of 3.2336, the ringgit has appreciated by Justin Lim
0.15%. The ringgit was traded between theedgemarkets.com 3.15
3.2277 and 3.2393 against the Singapore 3.1248
dollar on Tuesday (Aug 2). ty due to China’s property crisis and Cov-
id-19 uncertainty, coupled with Europe’s 3.10
The ringgit also strengthened 0.23% fragile economic growth, may continue to
to 4.5599 against the euro at the time of fuel safe-haven demand,” it added. 3.05 Aug 2, 2022
writing, versus the closing price of 4.5704 Aug 2, 2021
on Monday. On the technical front, Kenanga In-
vestment Bank said the exponential mov- Source: Bloomberg
However, compared to the US dollar, ing average (EMA) technical indicator
the ringgit weakened by 0.03% to 4.4545 signals that the ringgit is expected to de- in at 50.6 in July, slightly higher than 50.4
on Tuesday, against the closing price of preciate marginally against the greenback in June, indicating some resilience in do-
4.4530 on Monday. Kenanga Investment by 0.06% to 4.453 this week. mestic economic activity.
Bank Bhd said in its weekly ringgit out-
look that despite the USD index (DXY) Meanwhile, Maybank Investment Bank It has set the support at 4.4420 for the
facing downward pressure from the US Bhd said in a note that the US dollar’s 21-day displaced moving average (DMA)
Federal Reserve Chairman Jerome Pow- appreciation against the Malaysian ring- and 4.4160 50-day DMA, while resist-
ell’s less hawkish comments, the ringgit git pair has finally shown signs of easing ance at 4.50.
still failed to trade below the 4.45-level near recent highs, amid the US dollar
due to lack of domestic catalysts. pullback, supported by oil prices and re- Meanwhile, for the Singapore dollar
silient equity sentiments. against the ringgit, it said the technical
While the research outfit said the ring- pullback was not ruled out after more
git might continue to trade range-bound It added that Malaysia’s manufacturing than a 2% run-up from July, trough to
around the 4.45-level against the green- purchasing managers index (PMI) came peak.
back due to the ongoing global market
instability, there may be some room for It has set support at 3.2000, 3.1800
growth amid expectations that the US and 3.1650 levels. In contrast, resistance
job growth may be slowing. is set at 3.2250, 3.2300 and 3.2340 levels.

“That being said, the local note’s up-
side could be limited as the yuan’s volatili-

wednesday august 3, 2022 5 TheEdge CEO morning brief

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KUALA LUMPUR (Aug 2):The govern- Govt eyes creased to meet the needs of activities or
ment is targeting at least RM4 billion in minimum special rehabilitation programmes to help
additional revenue from Cukai Makmur RM4 bil extra target groups affected by Covid-19 and
(Prosperity Tax) for the assessment year revenue from Cukai higher cost of living due to the uncertain-
2022, said Finance MinisterTengku Datuk Makmur for 2022 ty of the global economy,” he said.
Seri Zafrul Abdul Aziz.
by Shazni Ong Tengku Zafrul said the government will
“Since the imposition of Cukai Makmur theedgemarkets.com also take into account the views and feed-
is for the assessment year 2022, the amount back of various stakeholders on the impact
of specific revenue collection from the tax by the government to structure a balanced, of implementing these measures.
can only be determined in the IncomeTax fair, equitable taxation system so as to sup-
Return Form (BNCP) for the assessment port and increase the country’s revenue. “The government needs to ensure that
year 2022 within seven months from the this move does not affect the country’s eco-
end of the company’s accounting year. “This initiative is necessary to ensure nomic position and competitiveness in line
that the tax revenue collection can be in- with the ongoing efforts to attract foreign
“Therefore, the amount of revenue col- investments,” he added.
lected from Cukai Makmur as requested
has not been presented for the time being,” Tengku Zafrul was replying to a question
he said in a written parliamentary reply by Kota Melaka Member of Parliament
dated Aug 1 which was uploaded on the Khoo Poay Tiong, who had asked the fi-
Parliament website. nance minister to state the total revenue
from Cukai Makmur so far, and whether
The ProsperityTax is a one-off tax meas- the government is considering or planning
ure introduced by the federal government to introduce other taxes including GST,
in Budget 2022, whereby chargeable in- windfall tax, or inheritance tax in the near
come above RM100 million will be taxed or long term.
at a rate of 33%, instead of the blanket 24% Read also:
rate previously.Tax is levied on a company’s Federal govt debt amounted to
chargeable income and not its net profit. RM1.045 tril or 63.8% of GDP at
end-June; debts of 1MDB not included
Regarding the implementation of new — Finance Minister
taxes,Tengku Zafrul noted the government
has not planned to implement any new Zafrul: 97.5% of federal govt debt in
taxes such as the goods and service tax ringgit
(GST), windfall tax or inheritance tax in
the near future.

“However, for the sake of the sustaina-
bility of tax revenue collection in the future,
initiatives and studies are being carried out

KUALA LUMPUR (Aug 2): Offering Tax breaks for mestic direct investments, and to prevent
tax breaks to multinational corporations MNCs no longer cross-border tax evasion activities.
(MNCs) will no longer be appealing in at-
tracting them to Malaysia, said the Inland appealing, “To ensure that multinationals pay the
Revenue Board (IRB). disadvantageous right taxes where they are due, the govern-
for destination ment, through the IRB, will continue to
IRB chief executive officer (CEO) Da- develop comprehensive strategies in deal-
tuk Mohd Nizom Sairi said under the Or- country — ing with international tax compliance risks,
ganisation for Economic Co-operation and IRB CEO which include calling for greater disclosures
Development’s (OECD) proposed global and transparency by multinationals,” he
tax reform, tax breaks will be disadvanta- Bernama said in his opening remarks on Tuesday.
geous for the destination country, as the
MNC’s country of origin could claim the tial rate of zero to 10% for participating in Mohd Shahar noted that the global min-
tax difference. promoted activities or producing promoted imum tax agreement would result in more
products for five or 10 years. than US$125 billion (about RM556.75 bil-
“We need to come out with alterna- lion) in profit reallocation from about 100
tive or more attractive incentives for these Meanwhile, Deputy Finance Minister I of the largest and most profitable MNCs in
companies to come to Malaysia,” he told Datuk Mohd Shahar Abdullah said Malay- the world to all nations, ensuring that these
reporters at the National Tax Conference sia had consistently been responsive to cur- businesses pay a fair share of tax wherever
2022 here on Tuesday (Aug 2). rent changes in the internationally agreed they operate and generate profits.
tax standards.
Mohd Nizom announced previously that “Instead of attempting to end tax com-
Malaysia had agreed to implement a glob- “Malaysia always ensures a competi- petition, the global minimum tax agree-
al minimum tax of 15% on certain MNCs tive environment to attract foreign and do- ment imposes multilaterally agreed-upon
from next year. restrictions.

Malaysia was among the 136 countries “Malaysia, through the Ministry of Fi-
previously announced by the OECD as nance and the IRB, via continuous engage-
ready to reform the global taxation system. ments with relevant parties, is actively fol-
lowing the developments of this proposal
The standard corporate income tax rate to enact a global minimum corporate tax
in Malaysia is 24%, but MNCs granted plan,” Mohd Shahar said.
tax exemption will be taxed at a preferen-

wednesday august 3, 2022 6 TheEdge CEO morning brief

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Zahid Izzani Mohd Said/The Edge

Najib’s affidavits show former PM’s
assets worth RM4.49 mil

KUALA LUMPUR (Aug 2): Former by Hafiz Yatim car, the other four Mercedes Benz cars
prime minister Datuk Seri Najib Razak, theedgemarkets.com and the Kawasaki motorcycle were gifts.
in fulfilling the requirements of the Mare-
va injunction in the suit by SRC Interna- up to the value of RM42 million within Najib also affirmed that his Affin Bank
tional Sdn Bhd and its subsidiary Gan- 30 days after the order made by the court current account contained RM1.25 mil-
dingan Mentari Sdn Bhd, has listed his was served on Najib. lion, while his ASNB deposits were worth
assets as being worth RM4.49 million in RM2.53 million.
properties and cash along with deposits Following the imposition of the Mareva
registered with Amanah Saham Nasional injunction, Najib filed a notice of appeal to SRC and Gandingan Mentari filed a
Bhd (ASNB). the Court of Appeal to set it aside. suit against Najib in May 2021 for breach
of fiduciary duties, knowingly receipt of the
This was disclosed in two of his affida- Affidavits list Najib’s Bentley, bikes, funds, dishonest assistance, tort of misfea-
vits dated July 20 and an earlier one filed properties in Pahang and Selangor sance and abuse of power.
on April 25 by Messrs Shafee & Co. Najib’s affidavits contained a list of his as-
sets and cash that was prepared by his ac- When the lawyers of SRC and Gan-
The list of assets was obtained via a file countant. dingan Mentari argued for the Mareva
search after case management was done injunction, they cited Najib’s conviction
before High Court senior assistant regis- The document showed that he owned by the High Court in 2020 and the up-
trar Azlinda Ahmad Sharif.The case was seven properties — six in Pahang and one holding of his conviction by the Court of
also called before Justice Datuk Amarjeet in Selangor — that were acquired before Appeal as valid grounds for the court to
Singh on Tuesday (Aug 2). 2012. grant the order.

On March 22, High Court judicial com- According to the affidavits, the prop- Najib was found guilty of abuse of
missioner Datuk Mohd Arief Emran Arifin erties were worth RM460,987 in 2022, power over the approval of the RM4 bil-
granted an inter partes Mareva injunction which was how much he had paid for them lion loans from the Retirement Fund, Inc
that required the former premier to not more than 10 years ago. (KWAP), criminal breach of trust and
remove, dispose of, deal with or diminish money laundering involving RM42 million.
the value of any of his assets in and outside Meanwhile, his collection of eight ve-
of Malaysia, up to RM42 million, pending hicles included a Kawasaki motorcycle, He was sentenced to 12 years in jail
the final determination of the suit. Honda motorcycle, five Mercedes Benz and fined RM210 million, and is awaiting
cars, and a Bentley car. his final appeal before the Federal Court,
The court also directed Najib to dis- scheduled to begin on Aug 15.
close to the plaintiff ’s solicitors in writ- The values of one of the Mercedes Benz
ing his assets, in or outside of Malaysia, cars and the Honda motorcycle were listed In proceedings held before Amarjeet on
as RM252,000. Meanwhile, the Bentley Tuesday, SRC, Gandingan Mentari and
Najib reached a settlement concerning his
List of assets owned by former PM Najib based on affidavits stay of proceedings of the civil suit.

Assets/cash Value (RM) The application for a stay of proceed-
Amanah Saham Nasional Bhd (ASNB) desposit 2,530,000 ings was thus struck out with no order as
Affin Bank current account 1,250,000 to costs.
Seven properties — Six located in Pahang and one in Selangor
Eight vehicles — of which Mercedes Benz and Honda motorcycle worth 460,987 Following this, Amarjeet directed Na-
252,000 jib to file and serve his defence within two
* The remaining six vehicles were gifted as below months fromTuesday and fixed case man-
4,492,987 agement for the case for Oct 13.
Four Mercedes Benz cars, one Bentley car and one Kawasaki motorcycle
Total SRC and Gandingan Mentari were rep-
resented by Nagarajah Muttiah, Syafinaz
Vani, Elani Mazlan while Muhammad Far-
han Shafee appeared for Najib.

wednesday august 3, 2022 7 TheEdge CEO morning brief

|P R E S E N T E D B Y |M A I N P A R T N E R |S U P P O R T I N G P A R T N E R |S U P P O R T E D B Y

ENDORSED BY

MINISTRY OF HOUSING AND
LOCAL GOVERNMENT

Is your building the best managed
& sustainable property
in Malaysia?

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KUALA LUMPUR (Aug 2): Dufu Tech- DufuTechnology Moving forward, the group is seeing
nology Corp Bhd saw its net profit in 2Q net profit healthy order flow from its existing cus-
the second quarter ended June 30, 2022 tomers.
(2QFY22) rise 83.79% to RM29.26 mil- up 84% on forex
lion, from RM15.92 million a year earlier, gains, pays 2.5 sen “The revenue stream from HDD re-
supported by higher foreign exchange (fo- mains positive with cloud demand lead-
rex) gains of RM6.20 million. dividend ing the charge to fuel the group’s growth.

Earnings per share surged to 5.50 sen by Sulhi Khalid “We are also positive on the group’s non-
from 3.10 sen, its Bursa Malaysia filing theedgemarkets.com HDD segment, as the semiconductor and
showed on Tuesday (Aug 2). tech hardware capital spending remains
by 59.75% from RM18.32 million in the strong from domestic equipment exporters.
Meanwhile, the Penang-based precision immediate preceding quarter (1QFY22),
machining parts manufacturer said its quar- while revenue came in higher by 6.32% “All-in-all, we are seeing revenue
terly revenue increased by 4.04% to RM91.79 from RM86.33 million in 1QFY22. growth for the year 2022, which should
million,compared to RM88.22 million,main- contribute positively towards the group’s
ly due to the increase in revenue related to earnings,” it said.
hard disk drive (HDD) components.
Having said that, the group is cognisant
The group also has declared an interim of the uncertainties posed by various chal-
single tier dividend of 2.5 sen per share,to lenges. It says that it is facing “acute short-
be paid on Sept 23. age” of workers and other cost related chal-
lenges, being rising raw material costs, as
For the full six months period, the well as freight costs.
group’s net profit surged by 34.24% to
RM47.58 million from RM35.44 million It added that the Russia-Ukraine con-
in the same period last year, underpinned flict and lockdowns in China could lead
by favourable product mix and forex gains. to possible supply chain disruptions, op-
erational stoppages and shortage of raw
Revenue, on the other hand, increased material supply.
by 6.20% to RM178.11 million from
RM167.72 million, on the back of higher Dufu said it is cautiously optimistic of the
HDD components’ revenue. group’s financial performance for 3Q2022.

When compared to the previous quar- Shares in Dufu closed unchanged at
ter, the group’s net profit edged higher RM3.15 on Tuesday, giving it a market
capitalisation of RM1.71 billion.

CYBERJAYA (Aug 2): Dagang NeX- DNeX partners approval and the final investment decision
change Bhd’s (DNeX) subsidiary Ping CeruleanWinds targeted for later this year.
Petroleum UK plc will set up a joint-ven- to deliver offshore
ture company (JVCo) with CeruleanWinds “Ping is finalising conceptual develop-
Ltd to deliver a dedicated offshore floating floating wind ment planning after preparing front-end
wind turbine for the Avalon development turbine in UK engineering works to submit the Avalon
in the Central North Sea, the UK. Avalon project Field Development Plan. In addition, Ping
will apply for an innovation licence under
Ping and CeruleanWinds, a green infra- by Lam Jian Wyn the innovation and targeted oil and gas
structure developer, have signed an mem- theedgemarkets.com decarbonisation (INTOG) licensing from
orandum of understanding for the JVCo, Crown Estate Scotland.The licence would
which will deploy and operate the turbine, Mohamed Tahir, Ping is currently refin- allow us to operate and deploy the ded-
according to a statement onTuesday (Aug 2). ing its concept to integrate the FPSO with icated floating offshore wind turbine for
the offshore wind turbine for the Avalon the Avalon development,” he said.
The turbine will power the Sevan Hum- development, with field development plan
mingbird floating production storage and DNeX said Ping was also recently given a
offloading (FPSO) vessel acquired by Ping 19-month extension by the North SeaTran-
in July. sition Authority (NSTA) for the second term
of the P2006 licence containing the Avalon
“Ping aims to connect the FPSO to a field, allowing the company more time to
dedicated floating offshore wind turbine to optimise and obtain full regulatory approval
power the facility, thus minimising diesel and for the field development plan.
fuel gas usage as well as associated green-
house gas emissions in the UK waters. Ping has also been recently granted a
19-month extension by the NSTA for the
“The innovative and pioneering pro- second term of the P2006 licence con-
ject is set to be one of the first oil and taining Avalon. This allows the company
gas production facilities to meet the UK additional time to optimise and gain full
government’s emissions reduction targets regulatory approval for the Avalon Field
agreed in the North Sea Transition Deal Development Plan.
in March 2021,” it said.
Production from Avalon is expected to
DNeX said Ping and Cerulean Winds come on stream by mid-2025, with an esti-
will also try to reach terms on the power mated recovery of 23 million barrels of oil.
purchase agreement for the Avalon field
with the JVCo. DNeX was down one sen or 1.21% at
81.5 sen at the noon break onTuesday, giving
According to DNeX group managing it a market capitalisation of RM2.56 billion.
director Tan Sri Syed Zainal Abidin Syed

wednesday august 3, 2022 9 TheEdge CEO morning brief

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KUALA LUMPUR (Aug 2):The Ministry CAAM’s safety Category 1 to Category 2 by the FAA in
of Transport, through the Civil Aviation rating: Corrective November 2019.
Authority of Malaysia (CAAM), has taken
corrective action against 33 audit findings action taken Wee said based on the discussions, the
of the International Aviation Safety As- against 33 IASA FAA had informed verbally that 26 of the
sessment (IASA) raised by the US Federal findings, saysWee 29 findings obtained in the auditing session
Aviation Administration (FAA) in 2019. in December last year were successfully
Bernama closed, with all 26 of the findings related
Transport Minister Datuk Seri DrWee to technical aspects of the CAAM.
Ka Siong said this followed the downgrad- Patrick Goh/The Edge
ing of the CAAM’s safety rating from Cat- However, he said three findings were
egory 1 to Category 2 by the FAA. Wee says the FAA reaudited the CAAM from still not closed, with two of them related to
Dec 6 to 10, 2021, and a written report of the the legal aspect, and the other concerned
He said the FAA reaudited the CAAM audit findings was submitted to Malaysia on technical and training aspects, involving
from Dec 6 to 10, 2021, and a written re- the preparation of the syllabus for CAAM
port of the audit findings was submitted to May 10 for corrective action. inspectors.
Malaysia on May 10 for corrective action.
“In this connection, corrective action
“Based on the report, the CAAM has to cover the three findings was submitted
taken action to close 29 findings of the to the FAA on July 25, and the FAA will
IASA audit raised by the FAA, and then on make a decision regarding a rerating in
July 12 to 14, the FAA held further discus- the near future and announce it this Au-
sions with the CAAM regarding corrective gust,”Wee said.
action taken by the CAAM against those
findings,” Wee said during the minister’s To Abdul Latiff ’s question on action
question time in the Dewan Rakyat on taken by Malaysia to retain the country’s
Tuesday (Aug 2). membership as a council member of the
International Civil Aviation Organization,
He was responding to a question from the minister said the CAAM had drawn
Abdul Latiff Abdul Rahman (PAS-Kuala up a strategy to gain support to retain the
Krai) on the status and action taken by seat, as well as hold bilateral meetings with
the ministry, following the downgrading regional groups, including the African Civil
of the safety rating of the CAAM from Aviation Commission.

KUALA LUMPUR (Aug 2): LPI Capital LPI reports “Geopolitical tensions and looming re-
Bhd’s second-quarter net profit dropped to profit drop cessionary pressures add further uncertainty
RM56.77 million, from RM83.92 million a as insurance to the global economic recovery.The Ma-
year earlier, as the general insurer incurred claims rise laysian economy will be impacted by lower
higher claims by policyholders, and as the external demand if developed global econo-
company registered a decline in revenue by Izzul Ikram mies move into a recession. Many countries
on lower gross-earned premiums and in- theedgemarkets.com are also bracing for the impact of another
vestment income. wave of Covid-19 cases, following the de-
at RM118.3 million, from RM166.23 mil- tection of more infectious sub-variants of
“The performance of the Malaysian gen- lion a year earlier, as revenue slipped to Omicron,” LPI said.
eral insurance industry has been affected RM794.78 million from RM860.78 million.
by the volatility of return on investment in- Despite the heightened uncertainty and
struments and the normalisation of claims “[In quarterly terms,] for 2QFY22, the volatility in the operating environment, LPI
experience, as the country transitions to group recorded a lower profit before tax of said the group will continue to strengthen
[Covid-19] endemicity,” LPI chairman and RM73.5 million, compared with RM75.8 its distribution channels to facilitate con-
founderTan Sri DrTeh Hong Piow said in million for 1QFY22. tinued business growth.
statement to Bursa Malaysia on Tuesday
(Aug 2). “The decrease in profit before tax for “[In Malaysia,] the second phase of liber-
the said quarter was mainly due to lower in- alisation of the insurance industry expected
Teh, who is also the founder and chair- vestment income received,” LPI explained. to commence in 2HFY22 will put further
man emeritus of Public Bank Bhd, said Ma- pressure on [insurance] premium pricing
laysia’s strong economic fundamentals at Despite the weaker financial perfor- and underwriting margins.
this juncture allow the country to withstand mance, LPI declared for 2QFY22 its first
the impact of a recession that may emerge interim dividend of 25 sen a share for the “Nevertheless, with its (LPI’s) emphasis
in global economies. financial year, compared with 29 sen a year on prudency in [insurance] underwriting
earlier. and continued product innovation, the LPI
“The reopening of all economic sectors group is confident that it will remain com-
is expected to fuel economic growth, but LPI said the dividend’s ex- and payment petitive and resilient to sustain its profita-
the outlook continues to be very challeng- dates fall on Aug 16 and 25 respectively. bility in the liberalised environment,” LPI
ing,” he added. added.
Looking ahead, the company is mindful
According to LPI’s Bursa filing, the of factors, including a possible recession in At the noon break, LPI settled down
company’s revenue fell to RM397.05 mil- developed economies, as the world contends four sen or 0.29% at RM13.60, giving the
lion for the second quarter ended June 30, with lingering Covid-19 concerns. company a market capitalisation of about
2022 (2QFY22), from RM419.99 million RM5.42 billion.
a year earlier.
LPI has 398.38 million outstanding
For the first half ended June 30, 2022 shares, acccording to its latest quarterly fi-
(1HFY22), cumulative net profit was down nancial report.

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KUALA LUMPUR (Aug 2):The Govern- Govt has approved education institutions, while 97.4% of en-
ment has approved 99 research, develop- 99 R&D, C&I trepreneurs came from micro, small and
ment, commercialisation and innovation projects worth medium enterprises.
(R&D and C&I) projects and programmes RM5.6 bil for
worth RM5.6 billion, to support the de- 2021-2022, Ismail Sabri said that out of approxi-
velopment of the innovation sector in Ma- says PM mately 5,435 start-up companies estab-
laysia in 2021 and 2022, under the 12th lished from 2010 to 2020, only 5% were
Malaysia Plan (12MP). Bernama technology-based.

Prime Minister Datuk Seri Ismail Sabri at boosting commercialisation activities “For the short- and medium-term ap-
Yaakob said the government would also in- between academia and industry, he said. proach, a collaboration between research-
tensify commercialisation and innovation ers and entrepreneurs needs to be imple-
efforts to create more industry-based prod- Ismail Sabri said the third entity is the mented to increase local innovation.
ucts and solutions with high added value. Malaysian Science Endowment, under the
purview of the Ministry of Science,Tech- “This is in line with the Malaysian
“For this purpose, all R&D and C&I nology and Innovation (MOSTI) and the Start-up Ecosystem Roadmap 2021-2030,
activities will be aligned with national de- Malaysian Academy of Sciences, which will or SUPER, which targets 5,000 start-up
velopment priorities. create alternative funding for R&D and companies and five unicorn-class com-
C&I through collaboration between in- panies worth over US$1 billion (about
“Digitalisation, adoption of technology dustry and international bodies. RM4.46 billion) by 2025,” he said.
and innovation are important to achieve
sustainable economic growth,” he said “The three entities need to work to- He said that so far, Malaysia only had
when opening the Malaysia Innovates gether to ensure that the results of R&D one company of unicorn status, namely
Conference 2022 here onTuesday (Aug 2). and C&I, as well as intellectual properties, Carsome Sdn Bhd.
become high value-added products, and
He said the commercialisation aspect put Malaysia at par with advanced inno- Therefore, more incentives need to be
would also be given emphasis by ensur- vation-based countries, such as South Ko- provided to create more technology-based
ing that at least 50% of the total R&D rea, Switzerland and Singapore,” he said. start-up companies, including an open in-
expenditure is for experimental develop- novation ecosystem strategy to boost na-
ment research. He explained that Malaysia’s R&D and tional innovation through the mobilisation
C&I landscape is different from developed of ideas from all parties involved, he said.
The premier said three entities had been countries, because almost 80% of research-
established to develop the innovation eco- ers in this country in 2018 were in higher Ismail Sabri said that MOSTI and the
system, with the first being the Research Malaysian Academy of Sciences are devel-
Management Unit, under the Economic oping the Malaysian Open Science Platform
Planning Unit (EPU) of the Prime Min- to intensify data sharing between researchers
ister’s Department, to coordinate and or- and industry, while the country’s priority
ganise the national research strategy. areas of science, technology and innovation
are also being coordinated under the 12MP.
The second entity is the Malaysian Re-
search Accelerator forTechnology and In- The two-day conference was a joint effort
novation, under theTechnology Commer- by the EPU, the Prime Minister’s Depart-
cialisation Accelerator programme, aimed ment and the United Nations Development
Programme.

KUALA LUMPUR (Aug 2): Fears of a ESG-related address, said Malaysian companies are
global recession, coupled with the ongoing investments encouraged to embrace ESG elements
conflict between Russia and Ukraine, pre- to grow amid because they are an increasingly impor-
sents an opportunity for investors to look uncertainties — tant factor in determining company valu-
at environmental, social and governance PwC Malaysia ation, as well as investors’ and consumers’
(ESG)-related investments, according to economist confidence.
PwC Malaysia deals partner of economics
and policy Patrick Tay Soo Eng. by Syafiqah Salim “Companies are encouraged to contin-
theedgemarkets.com ue embarking on green investments in the
Other investments in Malaysia could be country by exploring sustainable invest-
impacted if economic conditions continue the foreign labour problem and so on. ment opportunities in green technology
to deteriorate amid ongoing uncertainties, “For example, if I am under stress, what areas, such as renewable energy sources
but the focus on ESG investments will con- which include solar, biomass, biogas, mi-
tinue to grow, he told the media after the do I do? I try to cut costs, right. So, ESG ni-hydro and other green technology-qual-
Malaysian Investment Development Au- strategies are a good way to reduce costs ifying activities, such as energy efficiency,
thority’s (MIDA) panel discussion on the over the long term. I think the smarter green buildings, green data centres and
ESG agenda on Tuesday (Aug 2). investors would focus on that, and that’s integrated waste management.”
what we are seeing,” he said.
“What I see on the ground is that people From January to March, the govern-
may be taking a pause in other investments, MIDA chief executive officer Datuk ment, through MIDA, successfully ap-
but they are planning their projects using Arham Abdul Rahman, in his welcome proved 212 green technology projects and
ESG as a strategy [going] forward.They see services activities amounting to RM433
ESG investments as the long-term trend. million, Arham said.

“I see investors responding to the cur- “[Meanwhile,] from 2001 to March
rent food crisis [amid inflation].They are 2022, MIDA approved investments re-
thinking about how to restructure their lated to green projects and green services
business and make a series of investments amounting to RM35.5 billion, with 3,186
[in ESG] to triple productivity to reduce projects in total,” he added.

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KUALA LUMPUR (Aug 2): Majuperak Majuperak buys The proposed acquisition is estimated
Holdings Bhd, a 51.41%-owned subsidi- stake in property to be completed within 60 days from the
ary of Perak State Development Corp, has date of the agreement. Majuperak said it
struck a deal to acquire a substantial stake management will fund the proposed acquisition from
in two property management companies firms as part of internal funds and/or equity fundraising.
as part of a plan to regularise its financial regularisation plan
condition and turnaround the group. AGPS and AGPSP are involved in prop-
theedgemarkets.com erty management services.Among the facili-
In a bourse filing on Tuesday (Aug ties management projects AGPS has in hand
2), Majuperak said it has signed a share nies to expand the market in Perak as well,” includeTijani 1 BukitTunku, Fortune Perda-
sale agreement (SSA) with sellers, name- Majuperak said, adding that the combina- na, Reizz Residence and Mon’t Kiara Sophia
ly Cheong Mee Yoke, Teoh Oo Seng and tion with its existing business will provide in Kuala Lumpur, while AGPSP manages
Tan Keng Heng, to acquire 49% equity economies of scale to support its business HorizonTower, IconicVue, NorthamVenture
interest in Allied Group Property Services expansion and have a competitive advan- and Orange Regency in Penang.
Sdn Bhd (AGPS) and Allied Group Prop- tage in the facilities management industry.
erty Services (Penang) Sdn Bhd (AGP- Majuperak posted a net profit of
SP) for RM9.8 million cash.This follows Under the terms of the acquisition, the RM116,000 in the first quarter ended
the signing of a term sheet between the three sellers will provide a total guaranteed March 31, 2022, a 93% decline from
two parties for the proposed acquisition pre-tax profit to Majuperak of RM1.6 mil- RM1.67 million recorded a year ago, as
on March 30. lion and RM2.2 million for the first and revenue fell 57% to RM5.84 million, from
second year from the completion date of RM13.45 million during the same period.
Majuperak said the proposed acquisi- the SSA. Based on its 49% equity interest,
tion represents a strategic investment for the pre-tax profit attributable to Majuper- In April 2020, Majuperak was classi-
the group to be entitled for the future in- ak would be RM784,000 for the first year fied as an affected issuer after it triggered
come streams arising from the property and RM1.08 million for the second year. Paragraph 8.03A(2)(b) of Bursa Malay-
management services carried out by AGPS sia’s listing requirements, as its unaudited
and AGPSP. financial statements for the financial year
ended Dec 31, 2019 showed that it had an
“The proposed acquisition would also insignificant business or operations.
allow Majuperak to have a footprint in the
Klang Valley and Northern Region, thus The stock was untraded onTuesday. It
utilising the capabilities of the two compa- last closed at 30 sen on July 29, bringing a
market capitalisation of RM85.33 million.

KUALA LUMPUR (Aug 2): Chin Hin UMA reply: Chin Hin Group Bhd RM
Group Bhd, which was slapped with an Chin Hin unaware 6
unusual market activity (UMA) query on of any corporate Vol (mil)
Tuesday (Aug 2), responded to Bursa Se- development, except 25
curities’ query that it is unaware of any cor- for Solarvest stake
porate development relating to the group’s sale, one-for-one 20 RM4.93 5
business and affairs apart from the pro-
posed sale of a 19.34% stake in Solarvest bonus issue 15 4
Holdings Bhd, as well as the one-for-one
bonus issue of Chin Hin shares. BY SYAFIQAH SALIM 10 3
theedgemarkets.com
Home-grown building material distribu- 5 RM1.20 2
tor Chin Hin’s shares have closed higher for Subsequently, on May 17, Chin Hin 0 1
11 consecutive days since July 15, reaching proposed to undertake a disposal of 129.1 Aug 2, 2022
RM5.11 on Monday (Aug 1),62.74% higher million Solarvest shares, representing a July 9, 2021
than July 15’s close of RM3.14. 19.34% stake, to Divine Inventions Sdn
Bhd for a cash consideration of RM103.28 Source: Bloomberg
The shares climbed further at the open- million. Divine Inventions owned a 36.6%
ing bell on Tuesday (Aug 2), touching a stake in Chin Hin as of end-June and is an Other than the above, Chin Hin said it
record high of RM5.12. entity owned by Chin Hin’s major share- is not aware of any corporate development,
holder, the Chiau family. rumour, report or any other possible expla-
The shares traded between RM5.12 and nation relating to the group’s business and af-
an intraday low of RM4.80 on Tuesday. “On July 14, 2022, the company issued fairs that might have accounted for the UMA.
However, it lost momentum at the close, the circular to shareholders in relation to
falling 18 sen or 3.52% to end the day at the proposed bonus issue and proposed It added that it is in compliance with Bur-
RM4.93 with about 854,800 shares traded. disposal to the shareholders, and subject sa Securities Listing Requirements (LR), in
to the extraordinary general meeting will particular Paragraph 9.03 of the LR on the
At RM4.93 per share, Chin Hin has a be held on Thursday, Aug 4, 2022,” the immediate disclosure obligations.
market capitalisation of RM4.36 billion. group told Bursa on Tuesday.
For the first quarter ended March 31,
Chin Hin’s share price has risen 83.27% 2022, Chin Hin’s net profit surged 73.25%
year-to-date from RM2.69 and 257% over to RM26.26 million from RM15.16 mil-
the past year from RM1.38. lion a year ago, as quarterly revenue
grew 13.98% to RM350.95 million from
On April 22, Chin Hin proposed to un- RM307.915 million in the previous year’s
dertake a bonus issue of 885.08 million corresponding period.
new shares on the basis of one bonus share
for every one ordinary share in Chin Hin
held at an entitlement date to be deter-
mined later.

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HONOURING MALAYSIA’S
BEST PERFORMERS IN
ESG EXCELLENCE

INTRODUCING THE INAUGURAL

In Collaboration With

Main Partner Knowledge Partner Auditor
(Funds Category)

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MOT, Govt
officially

withdraw appeal
over Dhaya

Maju LTAT suit
in apex court

SC seeks public’s iii. Markas Tentera Darat, Cawangan by hafiz yatim
help to locate six Sumber Manusia, Kementah Jalan theedgemarkets.com
people suspected of PadangTembak, 50634 Kuala Lum-
money laundering pur PUTRAJAYA (Aug 2): The trans-
port minister and the Government
offences iv. Kg. Setia Jaya, 78100 Lubok China, on Tuesday (Aug 2) officially with-
Melaka drew their appeal to the Federal
by izzul ikram Court against a judicial review grant-
theedgemarkets.com 5) Gary Tapau Anak Umut (IC: 851113- ed to Dhaya Maju LTAT Sdn Bhd in
13-5055) — relation to the Klang Valley Double
KUALA LUMPUR (Aug 2):The Securi- i. Rumah Unchit, Geligau Ulu, 95800 Tracking Phase 2 (KVDT2) project.
ties Commission Malaysia (SC) is seeking Engkilili, Sarawak
information from the public to locate the ii. 49A-69,Taman Pusat Kepong, Ke- Senior federal counsel Asliza Ali
whereabouts of six people who are being pong, 52000 Kuala Lumpur informed a three-member bench
investigated for allegedly receiving illegal iii. 49, No. 2 Jalan Tampoi Indah, led by Federal Court Justice Da-
proceeds via their bank accounts. Taman Tampoi Indah, 81200 Jo- tuk Vernon Ong Lam Kiat of the
hor Bahru, Johor withdrawal of the appeal.
The six individuals and their last known iv. No. 4, Jalan Harmoni 4/18, Taman
addresses are as follows: Desa Harmoni, 81100 Johor This follows Dhaya Maju LTAT’s
1) Noor Hayazi Ahmad (IC: 790712-02- withdrawal of its suit against the
6) Amir Shahrum Nordin (IC: 900222- transport minister and the Govern-
5521) — No. 35, Feeder 6, Ayer Hitam, 05-5183) — ment last week over the sudden ter-
06150 Jitra, Kedah i. No. 03, Persiaran Putra 3, 31750 mination of its contract when Peri-
2) Muhammad Harith Aiman Shaharud- Tronoh, Perak katan Nasional took over the reins
din (IC: 950823-14-6573) — No. 11, ii. No. 73 Persiaran Iskandar Perda- of the government.
Jalan Jasa 26, Taman Medan Pejasa, na 30, Bandar Seri Iskandar, 32600
46000 Petaling Jaya, Selangor Bota, Perak As a result, Justice Ong, who sat
3) Ahmad Azlan Edi (IC: 960926-14- They are being investigated under Sec- with fellow Federal Court Justices
5069) — No. 15, Lorong Keramat Datuk Abdul Rahman Sebli and Da-
Dalam 1, Kampung Datok Keramat, tion 4(1) of the Anti-Money Laundering, tuk Mary Lim Thiam Suan, struck
54000 Kuala Lumpur Anti-Terrorism Financing and Proceeds out the appeal.
4) Muhammad Rafie Hadhari (IC: of Unlawful Activities Act 2001 (AMLA).
941013-05-5081) — On July 21, The Edge reported
i. No. 9832 Taman Setia Jaya, 78100 If found guilty, they may be jailed up that Dhaya Maju LTAT withdrew
to 15 years and fined at least five times its suit in the Kuala Lumpur High
Lubok China, Melaka the sum of proceeds involved in the un- Court against the minister, Keretapi
ii. Batu 22 1/2,Kampung Ramuan China lawful activity. Tanah Melayu Bhd (KTMB) and
the Government over their sudden
Besar, 78300 MasjidTanah, Melaka “Members of the public with any infor- termination of the KVDT2 pro-
mation on any of the six missing individ- ject, therefore settling the dispute
uals are encouraged to notify the SC by that arose in 2020 after the sudden
calling 012-610 8793 or emailing aduan@ termination of the contract.
seccom.com.my. For more information,
please visit www.sc.com.my/regulation/ The company filed the suit fol-
enforcement/have-you-seen-these- lowing the termination, but in May,
people,” the SC said in a statement. the Cabinet decided to have Dhaya
Maju LTAT resume the project.

Despite withdrawing the suit
against the minister, the Govern-
ment and KTMB, the company has
not withdrawn its suit against Opus
Consultants (M) Sdn Bhd, as Opus
Consultants’ study was used by the
Government, which led to the ter-
mination of the contract.

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news In brief

Sapura Energy receives two-year contract extension worth RM580 mil Malaysian Genomics Resource
from Petrobras Centre Bhd (MGRC)

KUALA LUMPUR (Aug 2): Sapura Energy Bhd has been awarded a two-year extension of a RM
charter and service contract by Petrobras in Brazil worth RM580 million. In a statement on 3.0
Tuesday (Aug 2), the oil and gas service provider said the contract was awarded to Sapura
Navegação Marítima S.A, a wholly-owned subsidiary of Seabras Sapura Participações 2.5
S.A, a joint venture company between Sapura Offshore Sdn Bhd and Seabras Serviços
De Petroleo S.A. “The contract scope of work includes the provision of services and 2.0
charter of installation and recovery of flexible pipes in the Brazilian waters in a maximum 1.5 RM1.52
water depth of 2,500 metres. “The two-year contract duration for Sapura Esmeralda
commences immediately on August 2, 2022,” it said of the vessel to be used under the 1.0 RM0.71
contract. According to the group, the award strengthens Sapura Energy’s presence in Brazil, 0.5 Aug 2, 2022
signifying its ability to create strong partnerships and deliver value to clients. Its engineering
and construction segment operates six pipe laying support vessels (PLSVs) in Brazil, with a July 9, 2021
utilisation rate of about 95%. Shares in Sapura Energy closed half a sen or 12.5% higher at
4.5 sen, giving it a market capitalisation of RM719.06 million. — by Sulhi Khalid Source: Bloomberg

JCorp retunrs to the black in FY21, Advancecon wins RM17.16 mil MGRC gets UMA query following
with PAT of RM379 mil subcontract sharp fall in share price

KUALA LUMPUR (Aug 2): Johor Corp KUALA LUMPUR (Aug 2): Advancecon KUALA LUMPUR (Aug 2): Malaysian
(JCorp) returned to the black with a Holdings Bhd has secured a RM17.16 million Genomics Resource Centre Bhd (MGRC) has
profit after tax (PAT) of RM379 million subcontract for the provision of earthworks been slapped with an unusual market activity
for the financial year ended Dec 31, and civil engineering services over an eight- (UMA) query by Bursa Malaysia following a
2021 (FY21), compared with a loss after month period. In a filing with Bursa Malaysia sharp fall in its share price on Tuesday (Aug 2).
tax of RM237 million in FY20. This was on Tuesday (Aug 2), Advancecon said its The stock opened one sen higher at RM1.02,
achieved on revenue of RM5.13 billion, wholly-owned subsidiary Advancecon Infra where it stayed at for most of the trading day.
an increase of 19% from RM4.3 billion Sdn Bhd secured the subcontract from KEB But the stock dropped sharply about an hour
previously. “The improved results were Builders Sdn Bhd for the preliminaries, site before market close, as it lost 30 sen or 29.7%
attributable to a stronger revenue clearance and earthworks, geotechnical to end the day at 71 sen. The closing price
from the agribusiness segment due to works, erosion sediment and control plan gives the company a market capitalisation of
the uptrend in crude palm oil and palm services. Advancecon, which is involved in RM88.19 million. It saw 15.45 million shares
kernel prices,” JCorp said in a statement construction and quarry operations, said it will traded. Year-to-date, the genomics and
on Tuesday. The group’s wellness and fund the subcontract via internally generated biopharmaceutical company’s counter has
healthcare segment enjoyed stronger funds and external borrowings. Advancecon’s fallen 38.79%. The last time its share price
contributions from hospital activities share price closed unchanged at 29 sen on traded below 71 sen was on June 17, when
particularly as a result of higher inpatient Tuesday, giving it a market capitalisation of it settled at 68 sen. In a bourse filing, Bursa
and outpatient numbers, as well as from RM142.9 million. — by Chester Tay requested that the company disclose any
successful cost optimisation efforts corporate development, rumours or report
across the segment. The agribusiness concerning the business and affairs of the
segment recorded a revenue of RM1.65 group, or any other possible reasons, that
billion, a significant jump of 49% from may account for the UMA. The regulator also
FY20, while the wellness and healthcare asked whether the group is in compliance with
segment achieved a 10% increase the Bursa Securities Listing Requirements
in revenue. “As we progress into the (LRs), in particular on immediate disclosure
age of the ‘new normal’, the JCorp 3.0 obligations.— by Hailey Chung
Reinvention Plan has accelerated our
efforts by resetting and reimagining Dataprep wins RM5.4 mil contract from MYTV Broadcasting
the group to be resilient, agile, and
sustainable as we future-proof this KUALA LUMPUR (Aug 2): Dataprep Holdings Bhd has won a RM5.4 million award from MYTV
institution,” said JCorp president and Broadcasting Sdn Bhd to set up and provide managed services for the transmission system of
chief executive Datuk Syed Mohamed digital TV infrastructure. In a filing with Bursa Malaysia on Tuesday (Aug 2), the IT company said
Syed Ibrahim. In recognition of the its wholly-owned subsidiary Solsis (M) Sdn Bhd had accepted a letter of award from MYTV for the
group’s strong financial health, JCorp was design, supply, delivery, installation, testing and commissioning inclusive of managed services, for
in the first quarter of 2022 assigned an the transmission system of digital TV infrastructure at Gunung Telapak Buruk and TM Exchange
AAA/stable rating by RAM Ratings for Kangar. The contract is for a duration of 12 months starting July 28 this year, and it is expected
its RM3.5 billion Islamic Medium-Term to contribute positively to the group’s earnings within the contract period. Shares of Dataprep,
Notes (Sukuk Wakalah) Programme. which are down 77% year-to-date, eased half sen or 2.6% to close at 18.5 sen on Tuesday, which
JCorp is a value-driven organisation with translates to a market capitalisation of RM124.81 million. Dataprep’s largest shareholder is
total assets worth in excess of RM23 Wardah Communication Sdn Bhd, which is linked to Tan Sri Muhammad Ikmala Opat Abdullah,
billion as of end-FY21. — Bernama who also has 50.57% interest in construction firm Widad Group Bhd. — by Chester Tay

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US to stopTSMC, Intel from adding
advanced chip fabs in China

(Aug 2): As the US Congress passed a by Debby Wu, Daniel Flatley legislation possible, and don’t inadvertent-
historic US$52 billion (about RM231.76 & Jenny Leonard ly undermine the global competitiveness
billion) federal programme to boost do- Bloomberg of companies that receive CHIPS funds,”
mestic chipmaking capabilities, it includ- Intel spokeswoman Nancy Sanchez said.
ed one significant caveat: Companies that In late 2021, Intel
receive the funding have to promise not wanted to increase While China’s chipmaking champion
to increase their production of advanced production in China, Semiconductor Manufacturing Interna-
chips in China. but that plan was tional Corp (SMIC) can make chips that
are more advanced than 28 nanometres,
It’s a condition that will certainly add spurned by the its technology is still at least six years be-
to escalating tensions betweenWashington White House. hind industry leader TSMC.
and Beijing.The curbs will hit companies
like Intel Corp and Taiwan Semiconduc- may need to pay back the federal subsi- SMIC has been facing virtually insur-
tor Manufacturing Co (TSMC), leading dies in full. mountable challenges in catching up with
chipmakers that have tried to build their TSMC, after former US president Don-
businesses in China.TSMC won’t be able TheWhite House, which is expected to aldTrump’s administration pressured the
to substantially upgrade or expand its exist- sign the Act shortly, has voiced its support Dutch government to prevent ASML from
ing facilities, effectively losing some growth for the measure. selling its most cutting-edge extreme ultra-
opportunities in the world’s biggest semi- violet lithography systems to China. The
conductor market. Intel has been lobbying hard against the Chinese chip industry encountered a fur-
move to curb US investments in China’s ther setback in recent days, asWashington
Specifically, the CHIPS and Science Act chip sector. In late 2021, the American had quietly tightened China’s access to rel-
bars companies that get federal funding chipmaker wanted to increase production atively advanced chip equipment, sending
from materially expanding production of in China, but that plan was spurned by the stocks tumbling.
chips more advanced than 28-nanometres White House.
in China — or a country of concern like A large chunk of the federal grant is
Russia — for 10 years. While 28-nano- Intel ended up selling its wafer plant in expected to go to Intel,TSMC and South
metre chips are several generations be- Dalian to South Korea’s SK Hynix Inc, Korea’s Samsung Electronics Co, all of
hind the most cutting-edge semiconduc- as part of a broader deal for the Ameri- which are now building new chip fabri-
tors available now, they are still used in a can company’s NAND memory business. cation facilities worth tens of billions in
wide range of products, including cars and Intel still has chip packaging and testing the US.
smartphones. The ban covers both logic facilities in China.
and memory chips. Among potential recipients of the fed-
“Legislation this complex and impor- eral grant, onlyTSMC is making relatively
An exception can be made if the chip- tant requires input from all stakeholders. advanced chips in China at the moment.
makers concerned are adding production Intel and many companies in our industry Its facility in the southern Chinese city of
of 28-nanometre semiconductors or older have come together with our trade asso- Nanjing makes 28-nanometre and more
generations to serve the China market pre- ciation to provide input to policymakers advanced 16-nanometre chips, roughly the
dominately or the foreign country of con- in order to ensure that we have the best equivalent of the most sophisticated prod-
cern involved. Recipients who violate the uct SMIC can make.
restrictions and fail to remedy the breach
TSMC and Samsung declined to
comment.

bloomberg

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US job openings inflation for many Americans. bloomberg
fall to 10.7 mil, The labour market has been a bright
UK insolvencies
lowest since spot in an economy otherwise losing mo- surge to near
September mentum and possibly heading toward a re- 13-year high
cession as the Federal Reserve aggressively as Covid-19
by Jordan Yadoo raises interest rates. Some of the strength is support ends
Bloomberg starting to come undone as companies like
Shopify Inc and Amazon.com Inc either by Lucca de Paoli
WASHINGTON (Aug 2): US job open- cut jobs or freeze hiring amid economic Bloomberg
ings fell in June to a nine-month low, sug- uncertainty.
gesting a slight moderation in demand for LONDON (Aug 2): The number of
labour amid growing economic pressures. Even so, employers continue to report companies filing for insolvency in the
difficulty attracting and retaining workers. UK last quarter was the highest since
The number of available positions de- The JOLTS data precede Friday’s monthly 2009, a situation that is expected to get
creased to 10.7 million in the month from jobs report, which is currently forecast to worse before it gets better.
an upwardly revised 11.3 million in May, show the US added roughly 250,000 pay-
the Labor Department’s Job Openings rolls in July and the unemployment rate The period saw 5,629 company in-
and Labor Turnover Survey, or JOLTS, held near a 50-year low. solvencies registered in the UK, an 81%
showed on Tuesday.The median forecast increase on the same period a year earli-
in a Bloomberg survey of economists called There were about 1.8 jobs for every er, according to data released onTuesday
for 11 million openings. unemployed person in June, down slightly by the UK’s Insolvency Service. It is the
from May.The biggest drops in vacancies largest number of companies to go out
Despite the drop, the number of va- were in retail and wholesale trade as well of business for nearly 13 years.
cancies remains elevated as demand for as state and local government education.
workers broadly outweighs supply. That Construction also fell. The majority of the company insol-
is contributing to expensive labour costs, vencies were creditors’ voluntary liqui-
although wage growth is falling short of Some 4.2 million Americans quit their dations, or CVLs, accounting for around
jobs in June, little changed from the prior 87% of all cases.That is when the direc-
month. The quits rate, a measure of vol- tors of a company take it on themselves
untary job leavers as a share of total em- to wind up an insolvent company.
ployment, held at 2.8%.
“The record levels of CVLs are the
Lay-offs dropped slightly in June while first tranche of insolvencies we expect-
hiring eased somewhat. ed to see involving companies that have
struggled to stay viable without the life-
TOKYO (Aug 2): Japan’s average mini- Japan’s average line of government support provided
mum wage is set to rise at a record pace minimum wage over the pandemic,” Samantha Keen, a
this year, the government said on Tues- to rise at record partner at EY-Parthenon, said by email.
day (Aug 2), a positive development for “We expect further insolvencies in the
Prime Minister Fumio Kishida’s efforts pace this year year ahead among larger businesses who
to cushion households from global com- are struggling to adapt to challenging
modity inflation. by Tetsushi Kajimoto & Leika Kihara trading conditions, tighter capital, and
Reuters increased market volatility.”
A sub-committee of the Health Minis-
try decided on Monday that the average ations, in which salaries are directly set Life is getting harder for a number of
minimum wage for the current fiscal year between corporate management and la- UK businesses, with inflation and soar-
ending in March 2023 be raised by ¥31, bour unions. ing energy costs making for a difficult
or a record 3.3%, from the current level trading environment.The Bank of Eng-
to ¥961 (US$7.30 or about RM32.77) The government set a goal to raise the land is likely to raise rates by the most
per hour, a ministry official told Reuters, median average minimum wage to ¥1,000 in 27 years later this week, increasing
confirming an earlier media report. or higher “at the earliest date possible”. finance costs for many firms. On top of
that, measures to help companies sur-
Kishida is counting on the hike to drive Japan’s average wages have barely risen vive the pandemic, including relief from
his flagship policy of distributing wealth to since 2000, despite a tight job market as landlords looking to collect unpaid rent,
broader segments of the population to put subdued inflation gave companies, many ran out in April.
Japan’s economy on a sustainable recovery. of whom are wary of increasing fixed costs,
an excuse to hold off pay hikes.
The sub-committee’s recommendation,
which is made each year and serves as the But that is changing as rising import
nationwide standard for minimum wag- costs, driven by supply constraints and
es, will be formally approved by a wider the war in Ukraine, push up inflation by
committee comprising management and forcing more firms to raise prices of goods.
labour union representatives as well as
academics. Japan’s core consumer prices rose 2.2%
in June from a year earlier, a much slower
The decision on minimum wages fol- pace than in manyWestern economies, but
lowed annual spring negotiations, which remaining above the central bank’s target
saw big firms offer to raise wages by over for a third straight month.
2% to compensate employees for cost-
push inflation.

Minimum wages are set by the gov-
ernment unlike the spring wage negoti-

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DHAKA (Aug 2): Bangladesh’s garment World’s No 2 in Europe is shooting up, then people have
industry, the world’s No 2 exporter after clothes exporter to cut back on discretionary spending and
China, is facing a double whammy from faces order drop clothes will be one of those areas,” he said.
slowing global demand and an energy crisis as power falters
at home that is threatening to thwart the Regional contagion
nation’s pandemic recovery. by Arun Devnath Concern in the South Asian nation’s gar-
Bloomberg ment industry is reminiscent of cancelled
Plummy Fashions Ltd, a supplier to orders in the early days of the pandemic.
PVH Corp, the parent company of fashion Bloomberg Clothing exports fell to a five-year low of
brand Tommy Hilfiger, and Inditex SA’s US$27.95 billion in the fiscal year to June
Zara, saw new orders in July drop 20% “The cost of electricity from generators 2020, before staging a recovery. The na-
from a year earlier, its managing director is three times what we get from the na- tion saw garment exports climb to a record
Fazlul Hoque said. tional grid because diesel is costly,” Atiqur US$42.6 billion in the year ended June,
Rahman, chairman of Standard, said in accounting for 82% of total exports.
“Retailers in both European and US a separate interview. “We can’t keep our
markets are either deferring the shipments dyeing and washing units shut due to the Exporters also see ominous signs from
of finished products or delaying orders,” power outage. If we do, all the fabrics will Walmart Inc’s full-year profit forecast cut
he said in an interview. “As inflation is go to waste.” and its pledge to reduce clothing prices.
soaring in our export destinations, it has
a serious impact on us.” Add to that is the euro’s weakness And there is a regional contagion effect
against the dollar that is eroding the ap- from Sri Lanka, said Robertson, pointing to
Waning orders are a risk to the econo- peal of Bangladesh’s exports, which are Pakistan’s exports getting “so much cheaper”
my, where the garment industry makes up priced in dollars. because of its currency’s weakness. “That
more than 10% of gross domestic product adds to pressure on Bangladesh and key ex-
and employs 4.4 million people. It could “Clothing is a discretionary item,” said port markets like Europe will be buying less
not be happening at a worse time for Bang- Charlie Robertson, global chief economist textiles” as sales growth takes a hit.
ladesh as authorities are resorting to pro- at Renaissance Capital. “If your energy bill
ductivity-killing power cuts to preserve fuel Bangladesh has sought a loan from the
reserves amid a region-wide energy crisis, International Monetary Fund (IMF), the
caused in part by the war in Ukraine. latest South Asian nation to ask for assis-
tance as costlier oil eats into the region’s
“Uninterrupted energy supply is the dollar stockpiles.
key to delivering products in time,” Ho-
que said. “We’re facing a combination of Foreign exchange reserves in Bang-
multiple problems at home and abroad.” ladesh slipped to US$39.79 billion as of
July 13 from US$45.33 billion a year ear-
Three-hour outages lier.That is enough to cover roughly four
As the energy crisis struck, the cost of do- months of imports, slightly higher than the
ing business has surged. Standard Group IMF’s recommended three-month cover.
Ltd, one of the leading exporters that The country’s trade deficit widened to a
supply to Gap Inc and H&M Hennes record US$33.3 billion in the fiscal year
& Mauritz AB, depends on generators ended June.
for at least three hours a day to power
up its dyeing and washing units in the “We’ve just recovered from the Covid
manufacturing hub of Gazipur on the pandemic and then came the war,” said
outskirts of Dhaka. Standard Group’s Rahman. “We’re just
unwitting victims.”

COPENHAGEN (Aug 2): Shipping group Maersk lifts 2022 of around 17%, said in June that the cost
Maersk on Tuesday raised its 2022 prof- guidance as of shipping goods was unlikely to abate
it guidance after beating second-quarter anytime soon due to array of inflationary
revenue expectations as congested global congested supply pressures.
supply chains boosted freight rates. chain boosts rates
Shares in Maersk opened 3.3% higher,
The shipping industry has seen record by Jacob Gronholt-Pedersen trading at their highest level since early
profits in recent quarters on a surge in Reuters June, but down around 19% from an all-
consumer demand and pandemic-relat- time high hit in mid-January.
ed bottlenecks in US and Chinese ports US$30 billion it forecast earlier.
which have prompted a spike in freight The guidance is based on a gradual Revenue in the second quarter stood
rates. at US$21.7 billion, it said, above the
normalisation in ocean container shipping US$19.7 billion forecast by analysts in a
“Congestion in global supply chains in the fourth quarter of this year. Its previ- poll gathered by the company.
leading to higher freight rates has con- ous guidance was based on that happening
tinued longer than initially anticipated,” early in the second half of the year. Underlying EBITDA was US$10.3 bil-
the Copenhagen-based company said in lion, compared with the US$8.2 billion
a statement. Maersk, one of the world’s biggest forecast by analysts.
container shippers with a market share
Maersk, often seen as a barometer for “The strong result is driven by the con-
global trade, said it now expects under- tinuation of the exceptional market situa-
lying earnings before interest, taxation, tion within ocean [container shipping],”
depreciation, and amortisation (EBIT- the company said.
DA) of around US$37 billion versus the
Maersk is due to publish a full set of re-
sults for the second quarter onWednesday.

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LONDON (Aug 2): BP plc’s second quar- BP boosts The company said it expected crude
ter profit soared to US$8.45 billion, its dividend after O&G prices as well as refining margins
highest in 14 years, as strong refining mar- to remain “elevated” in the third quarter
gins and trading prompted it to boost its profit hits and said it would stick to its target of using
dividend and spending on new oil and gas 14-year high 60% of its surplus cash on share buy-backs.
(O&G) production.
by Ron Bousso & Shadia Nasralla The surge in revenue also allowed BP to
The strong performance caps a blowout Reuters sharply reduce its debt to US$22.8 billion
quarter for the topWestern O&G compa- from US$27.5 billion at the end of March.
nies on the back of soaring energy prices million for hydrocarbons.”
that have increased pressure on govern- BP plans to maintain its overall capital Big oil bonanza
ments to impose new taxes on the sector BP brings the second quarter profit tally
to help consumers. expenditure this year in a range of US$14 for the top Western O&G companies to
billion to US$15 billion. US$59 billion after rivals including Exxon
“The company is running well and it Mobil and Shell reported record earnings
continues to strengthen.We have real stra- BP increased its dividend by 10% to last week.
tegic momentum,” chief executive officer 6.006 cents per share, more than its pre-
Bernard Looney told Reuters. vious guidance of a 4% annual increase. Its underlying replacement cost prof-
It halved its dividend to 5.25 cents in July it, its definition of net earnings, reached
BP shares were up 3.6% at the opening 2020 for the first time in a decade in the US$8.45 billion in the second quarter,
of trading in London. wake of the pandemic. the highest since 2008 and far exceeding
analysts’ expectations of US$6.8 billion.
Looney, who took office in 2020 with The company also increased its share
a vow to rapidly shift BP away from fossil repurchases plan for the current quarter That was up from US$6.25 billion in
fuels to renewables, said that the company to US$3.5 billion after it bought US$4.1 the first quarter and US$2.8 billion a year
will increase its spending on new O&G by billion in the first half of the year. earlier.
US$500 million in response to the global
supply crunch. The strong performance was driven by
strong refining margins, “exceptional” oil
“We will direct more investment to- trading performance as well as higher fuel
wards hydrocarbons to help with energy prices, although gas trading was weaker,
security in the near term,” Looney said. BP said.
“We’ll probably direct about US$500

LONDON (Aug 2): The world’s biggest Glencore is But it is coal — the dirtiest fuel — that
miners have spent the past two weeks re- cashing in on is seen as the really big earner.
porting lower profits, shrinking dividends, coal to dodge big
and a worsening outlook as the year rolls miners’ slowdown Prices have soared to records this year
on. Next up: Glencore plc looks set to buck as a global energy crisis boosts demand for
the trend. by Thomas Biesheuvel fossil fuels around the world. Utilities are
Bloomberg curbing imports from Russia due to the
While commodities like iron ore and war in Ukraine, tightening the amount of
copper have retreated as gloom settles over For now, the companies are still mak- available supply, while surging natural gas
the global economy, Glencore is enjoy- ing good money, if not at last year’s record prices are also increasing demand for coal.
ing two key advantages over its mining levels. It was Anglo’s second-best first half
rivals — a powerful trading business that on record, while Rio paid its second-biggest That has put Glencore in a position to
thrives in volatile markets, and a suite of interim dividend. But the increasingly un- return cash to shareholders on a scale that
coal mines now churning out previously certain outlook and weakening prices have was previously the reserve of the iron ore ma-
unimaginable earnings thanks to the global cast a shadow over the underlying numbers, jors, with some analysts forecasting payouts
energy crunch. particularly as relentlessly rising costs across could exceed US$10 billion in total this year.
the industry add to profit-margin pressures.
As a result, analysts are forecasting re- The current dividend policy is to pay
cord profits and returns when Glencore re- “Prices have sharply declined from first- US$1 billion from its trading unit, plus
ports onThursday, with first-half earnings half averages, so these reported results do not 25% of free cash flows from the sprawling
seen more than doubling from a year ago. reflect the reality of the markets today,” said mining business.
Christopher LaFemina, an analyst at Jefferies
It is a sharp reversal from previous years. Group LLC. “We are in a stage of the cycle Still, some of those expectations — at least
The company had lagged its biggest ri- during which prices are falling and costs are for the half year — have been tempered af-
vals, largely because it does not mine any still rising. Not a good combination.” ter Glencore flagged that its profitable bets
iron ore, a commodity that helped super- on volatile commodity markets have tied up
charge earnings for mega miners BHP Against this backdrop, Glencore is ex- more working capital than normal.
Group and RioTinto Group. But China’s pected to deliver its best-ever results.The
Covid-19 controls have sapped demand company has already said that its trading “The underlying result will be very
for the steelmaking ingredient as investor profit will exceed the top end of its guid- strong, and when markets return to low-
worries about a global recession weigh on ance range, after it cashed in on volatile er volatility this working capital will be re-
commodity prices more broadly. markets. leased making it a temporary impact,” said
Tyler Broda, an analyst at RBC Capital
Rio Tinto last week reported a sharp Markets. “For now, however, this could
decline in first-half profit and cut its div- temper the cash returns expected at the
idend in half, while Anglo American plc half-year results.”
announced lower earnings and sharehold- Read also: European power hits record
er returns. Other miners from Vale SA to as extreme heat, drought parch Europe
Lundin Mining Corp also disappointed.

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Bloomberg

Tourism jump to The tourism-reliant nation has eased Vietnam
powerThai GDP Covid-related travel curbs, waived visa re- imposes 47.64%
growth to five-year quirements and relaxed business restric- anti-dumping
tions to lure international travellers as soar-
high in 2023 ing inflation has derailed the recovery in tax on sugar
domestic consumption and investments. imports
by Anuchit Nguyen Thailand in June also became the first na-
Bloomberg tion in Asia to de-criminalise cannabis in originating from
an effort to boost medical tourism. Thailand
(Aug 2): A faster-than-expected rebound
in international visitors toThailand is put- About six million foreign visitors are by Phuong Nguyen
ting the country’s economy on course to expected this year — the vast majority in Reuters
return to pre-pandemic growth by next the latter six months. Prayuth said that
year, according to the prime minister. number should more than triple to 19 mil- HANOI (Aug 2): Vietnam on Tues-
lion next year. day imposed an anti-dumping levy
Southeast Asia’s second-biggest econ- of 47.64% on some sugar products
omy will expand by 4.2% in 2023, on top “We have so much optimism in our eco- imported from five Southeast Asian
of forecast growth of 3.3% this year, Prime nomic outlook as the rebound in interna- countries but originating from Thai-
Minister Prayuth Chan-Ocha told a press tional tourism has been much faster than land for a period of four years, the
briefing after the weekly Cabinet meeting. we expected,” Prayuth said. Still, rising country’s trade ministry said.
That would match the pace in both 2017 material costs and slowing in the global
and 2018, which represent the highest over economy present “major challenges”, es- Last year,Vietnam imposed similar
the past decade, according to data com- pecially to Thai exports, he said. measures on sugar imports from Thai-
piled by Bloomberg. land, effective for five years. However,
Thailand’s retail inflation rate in June local firms said that to get round the
jumped 7.66% from a year earlier, a 14- measures, some sugar products orig-
year high, boosted by surging energy costs. inating from Thailand were being im-
For the year, the government forecasts a ported via Laos, Cambodia, Indonesia,
consumer-price jump of 6.2%.That should Malaysia and Myanmar.
decelerate to 2.5% in 2023, Prayuth said.
“The decision was made after a
(Aug 2): Singapore can stabilise wild Singapore says can careful and fair investigation launched
swings in power prices without needing to tame wild power last September, following international
impose state control over the energy mar- market without practices,” the trade ministry said in
ket, according to a government minister. a statement.
state control
Steps including efforts to build stand- “In the case products imported
by inventories of liquefied natural gas and by Ann Koh from those countries have sufficient
requirements on power generation compa- Bloomberg proof of being produced and harvested
nies to bolster fuel stockpiles have helped in their own countries, anti-dumping
“ensure uninterrupted energy supply” and limit of S$4,500 (US$3,261) a mega- tax measures will not be applied,” it
steadied prices “without the need to bring watt-hour, which was last reached in 2012, said.
the electricity market under state control because of tight fuel supply as global util-
within the short to medium term”,Tan See ities contend with the impact of Russia’s The ministry said the taxes will be
Leng, second minister for trade and indus- war in Ukraine. applied between Aug 9, 2022 and June
try, told parliament on Tuesday (Aug 2). 15, 2026.
Retailers have been particularly exposed
Tan was responding to a lawmaker’s to the price fluctuations as they buy pow- The ministry said data showed that
question asking if temporary nationalisa- er from the wholesale market, but sell to subsidised sugar shipments from Thai-
tion would be considered as businesses customers at a fixed rate. land surged 330.4% to 1.3 million
and consumers in the city-state struggle tonnes in 2020, and this was under-
with soaring wholesale costs of electricity, mining the domestic sugar industry.
and after some power retailers collapsed.
Vietnam removed duties on sugar
Wholesale electricity prices last month imported from Southeast Asian coun-
had a series of spikes close to a maximum tries in 2020, in accordance with the
commitments of the Association of
Southeast Asian Nations (ASEAN)
Trade in Goods Agreement.

However, provisions allow ASEAN
to impose import duties to protect the
rights and interests of domestic in-
dustries against anti-competitive be-
haviour.

Thai authorities could not immedi-
ately be reached for comment.

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(Aug 2): Nomad, a bridge protocol for Crypto firm cross-chain messaging protocol, an-
transferring crypto tokens across different Nomad loses nounced the full list of investors in its
blockchains, lost close to US$200 million nearly US$200 mil US$22 million seed round led by Poly-
in a security exploit on Monday, according in bridge hack chain Capital. Other backers include Ethe-
to security firm PeckShield Inc. realVentures, HackVC, CoinbaseVentures
by Sidhartha Shukla and Crypto.com Capital.
The software system was drained of Bloomberg
funds over hours and in small batches by Nomad’s protocol had a software bug
various accounts, blockchain data shows. serves to back the wrapped coins, creating that allowed users to withdraw more assets
a huge pool of tokens for hackers to target. than were deposited in the bridge, said El-
“An investigation is ongoing and lead- liptic Co-founder Tom Robinson.
ing firms for blockchain intelligence and The complexity of bridge software can
forensics have been retained,” the com- lead to errors and make them vulnerable “After the initial hack, upwards of 40
pany said in a statement. “Nomad’s goal for exploitation, said Mudit Gupta, chief other exploiters — comprising MEV bots,
is to identify the accounts involved and to information security officer at Polygon. flashbots, and independent exploiters —
trace and recover the funds.” Since bridges control huge amounts of replicated the attack in a manner that
assets, it also makes them an attractive quickly drained the bridge,” Robinson said.
The attack makes Nomad the latest target for hackers, he said.
bridge to suffer an exploit this year. Bridg- One of the exploiters on Nomad was
es are software that enable different types Axie Infinity’s Ronin bridge lost about also involved in the US$80 million hack
of blockchains and their respective tokens US$600 million in March and Harmony’s from Rari Capital’s Fuse platform from
to interoperate, rather than work in silos. Horizon was drained of US$100 million April, according to PeckShield.
in June. PeckShield found that one of the @nomadx-
They have become frequent victims yz_ bridge exploiters is @RariCapital (Fuse
of hacks in recent years, with more than The hack comes days after Nomad, Arbitrum) exploiter, who gained ~$3m in this
US$1 billion stolen from bridges in 2022, which describes itself as a “security-first” exploit. https://t.co/Uxy66rXrJ1 pic.twitter.
according to a June report by forensics com/CNI71HrKri
firm Elliptic. — PeckShield Inc. (@peckshield)
August 2, 2022
To convert one type of coin into another,
a bridge service will typically “wrap” a cryp-
tocurrency so that it can operate on another
blockchain.The bridge will need to hold re-

SHANGHAI/SINGAPORE (Aug 2): Chi- China’s property Xi Jinping looks reluctant to deploy the
na’s steel industry is entering a precarious crisis threatens to levels of infrastructure spending and finan-
new era as a worsening property crisis im- drag down steel cial stimulus that revived the sector, after
perils demand and Beijing’s construction-led the great financial crisis and the property
growth model looks increasingly untenable. industry market downturn in 2015-2016.

Almost a third of China’s steel mills by Martin Ritchie, Alfred Cang, “This time really is different,” said Le-
could go into bankruptcy in a squeeze Winnie Zhu & Liz Ng land Miller, chief executive officer of China
that’s likely to last five years, Li Ganpo, Bloomberg Beige Book International, which monitors
founder and chairman of Hebei Jingye the steel industry. “With property having
Steel Group, warned at a private company In the short term, lost its mantle as the preeminent growth
meeting in June. “The whole sector is los- the major obstacle driver, key commodities like steel no longer
ing money and I can’t see a turning point for steel is the large have the benefit of endless credit access.”
for now,” he said, according to a transcript stock of unfinished
of the gathering seen by Bloomberg News. properties, highlighted In the short term, the major obstacle
by a recent wave of for steel is the large stock of unfinished
The real-estate crisis has ballooned this mortgage boycotts. properties, highlighted by a recent wave of
year, engulfing developers to banks, and mortgage boycotts. Prices of construction
forcing Beijing to soften its growth ambi- Bloomberg steel have also plunged, with rebar — twist-
tions. Steel mills that churned out more ed steel rods that strengthen concrete —
than a billion tonnes last year, around half falling to a two-year low last week.That’s
of global output, are highly vulnerable to even as output has dropped to the lowest
the slump that’s also hit iron ore prices and in Mysteel data that goes back to 2015.
miners from Australia to Brazil.
Tough times ahead
After more than a year of property pain, “Demand is slipping fast,” Xiao Zunhu,
the outlook is worsening as the government chairman of state-owned HunanValin Steel
baulks at big bailouts and keeps stringent Co, told an industry meeting in Beijing last
debt rules in place. A steel purchasing week, where speaker after speaker warned
managers index for July tumbled to its of difficult times to come. Markets “will re-
lowest reading since 2008, and Goldman main complicated and tough” this half and
Sachs Group Inc sees demand down by 5% stimulus measures need time to take effect,
this year.The property sector accounts for Chen Shaohui, Vice President at Jiangsu
at least a third of Chinese steel demand. Shagang Group, said at the same meeting.

Beyond the current crisis, the industry Read the full story
is facing profound challenges as the growth
model that’s sustained China’s economy
for decades shows signs of strain. President

w e d n e s d a y a u g u s t 3 , 2 0 2 2 21 T h e E d g e C E O m o r n i n g b r i e f

world

BEIJING (Aug 2): Global investments in Energy security es nations to fire up idled coal plants to
renewables rose to a first half record of push lifts help replace Russian gas, or to step up
US$226 billion, as nations lift spending on renewables purchases of LNG, many regions are also
cleaner fuel sources in an effort to boost accelerating efforts to reduce their reliance
energy security. investment to on fossil fuel imports by adding more clean
new record power generation at home.
Investment was 11% higher than the
same period in 2021, even as the sector by luz ding Solar project financing, including util-
handles challenges like the rising costs of Bloomberg ity-scale developments, jumped about a
solar panels and wind turbines, driven by third in the first six months to a record
gains in raw materials including polysili- Bloomberg US$120 billion, and investments typical-
con and steel, BloombergNEF (BNEF) said ly accelerate through the second half of
Tuesday in a new report. the year, BNEF said. Investment in wind
power projects was 16% higher at US$84
“Despite the headwinds presented by billion, with spending on offshore farms
ongoing cost inflation and supply chain jumping 52%.
challenges, demand for clean energy sourc-
es has never been higher,” said Albert Che- China continues to be the largest mar-
ung, BNEF’s head of analysis. ket and saw investment of US$98 billion,
more than double the value in the first
“Policy makers are increasingly recog- half a year ago, as the government presses
nizing that renewable energy is the key ahead with the world’s largest rollout of
to unlocking energy security goals and wind and solar capacity.The US secured
reducing dependence on volatile energy US$12 billion over the same period, and
commodities.” Japan won US$5 billion of investments,
the report said.
Even as turmoil in global energy mar-
kets prompted by the war in Ukraine push-

NEW DELHI (Aug 2): India is planning India planning immediately respond to emails seeking
to start a carbon trading market for major carbon credit comment.
emitters in the energy, steel, and cement
industries, as part of its efforts to hasten market for The market would initially be limited
the transition to cleaner fuels. energy, steel, to hard-to-abate sectors, allowing partic-
ipants to trade credits earned from cut-
The platform is likely to be announced cement ting emissions, the people said. One of
by Prime Minister Narendra Modi at In- the goals is to ensure state-owned energy
dependence Day celebrations on Aug 15, by Archana Chaudhary firms like Oil & Natural Gas Corp, Indian
according to people with the knowledge Bloomberg Oil Corp, and NTPC Ltd, as well as steel
of the plan. It has been in the works since and cement companies, can benefit from
March, when consultation with ministries Bloomberg planned investments in carbon-capture
and companies began, said the people who projects, they said.
asked not be named because discussions
are private. India, the world’s third-biggest emitter,
surprised pundits by announcing a plan
The Prime Minister’s Office and gov- to achieve net zero by 2070 at the COP26
ernment think tank NITI Aayog did not summit in Glasgow late last year. While
that is a decade behind its fellow Asian be-
hemoth China, the South Asian economy
is less developed and faces greater climate
challenges. The country is looking to cut
one billion tons of emissions by 2030 as
a first step in reaching its goal.

India’s proposed market follows a simi-
lar one in China, which last year launched a
mandatory trading system for all large pow-
er plants. But the market has been plagued
by delays and problems with data collec-
tion, and has seen only lacklustre buying
and selling of allowances.

A detailed plan for establishing the
carbon market is likely to be ready in the
fourth quarter, the people said. India is also
looking to introduce methanol-blended
fuels in land and marine transport, build
more carbon capture projects, and encour-
age the adoption of electric vehicles as part
of its climate goals, they said.

The carbon-market plan was previous-
ly reported by the local Mint newspaper.

w e d n e s d a y a u g u s t 3 , 2 0 2 2 22 T h e E d g e C E O m o r n i n g b r i e f

world

HONG KONG/SINGAPORE (Aug 2): bloomberg Dividend angst
HSBC Holdings plc’s bosses met retail in- Hong Kong retail shareholders were par-
vestors in Hong Kong on Tuesday, urging HSBC seeks to ticularly unhappy when HSBC scrapped
them that a strategy to operate as a unified placate Hong its dividend in 2020 during the Covid-19
bank is better for its future than a break- Kong investors pandemic, following a request to lenders
up mooted by top shareholder Ping An after rejecting by the Bank of England.
Insurance Group Co of China. break-up call
“Retail shareholders would welcome
The London-headquartered group is by Selena Li & Anshuman Daga any proposals that change the status quo,
under pressure from Ping An to explore Reuters or boost confidence of investors in manage-
options including spinning off its main- ment,” said shareholder Ken Lui, founder
stay Asia business to increase sharehold- commented on the issue. of an HSBC shareholder group.
er returns. Ping An, which has been building
“But why am I being vocal and support
At a meeting attended by hundreds of a stake in HSBC since 2017, when the the spin-off proposal? Because I don’t have
shareholders, management of HSBC were bank’s share price was about a third higher, confidence in management,” he said.
quizzed by investors on its strategy for div- has not called publicly for a break-up but
idends and growth. has said it supports all reform proposals Lui declined to disclose details of his
that could help increase the long-term val- HSBC shareholding and it was not imme-
“Our strategy which is now two-and- ue of the bank.The insurer owned 8.23% diately clear how many bank sharehold-
half years into execution should put the of HSBC as of early February. ers are part of his investor group that was
bank on the path to deliver returns in 2023 launched on Monday in support of HS-
at a level we have not achieved in the last 10 BC’s break-up.
years,” chairman MarkTucker said. “This
return should help drive and increase the A Hong Kong politician has also urged
share price and have a positive impact on HSBC to appoint Ping An’s representatives
the dividend.” to its board, and move its headquarters
back to Hong Kong.
Hong Kong is HSBC’s biggest market
and a key investor base for the bank. Some “We do worry if the Bank of England
investors in the city have been vocal in their will order HSBC to suspend dividends
support of Ping An’s plan. again in the next wave of the pandemic,”
Christine Fong, a district council member
The meeting — HSBC’s first with retail in Hong Kong who will attend the meeting
shareholders in the city in three years — with HSBC, told Reuters.
was held a day after HSBC rejected the
break-up call as it reported forecast-beating “If HSBC returns to Hong Kong, it
profit and promised chunkier dividends. will be less affected by UK political factors
and regulation.”
It was not immediately clear if Hong
Kong’s retail shareholders have the heft In 2016, HSBC decided to keep its
to eventually force a vote on a break-up. headquarters in London, rejecting the
Big institutional investors have so far not option of shifting it back to Hong Kong
after a 10-month review.

MILAN/BENGALURU (Aug 2): Shares of Credit Suisse 6% by 12:25 pm GMT. Rival UBS’s stock
Credit Suisse fell more than 6% onTuesday, shares falter on has lost about 7% this year.
after ratings agencies Moody’s and S&P’s
“negative” outlook on the Swiss bank, days bleak ratings A trader said US House of Representa-
after it appointed a new top boss to help it news tives Speaker Nancy Pelosi’s trip toTaiwan
recover from a string of scandals and losses. may also be weighing on the stock, given
by Noor Zainab Hussain, the bank’s sizeable Asia-Pacific exposure.
Moody’s Investors Service downgraded Bansari Mayur Kamdar & Danilo Masoni
the group’s senior unsecured debt ratings Credit Suisse last week named asset
by one notch to “Baa2” and long-term sen- Reuters management boss Koerner as its new
ior unsecured debt and deposit ratings by CEO, tasked with scaling back investment
a notch to “A2”. The agency maintained Moody’s Investors Service banking and cutting more than US$1 bil-
its “negative” outlook on the ratings. downgraded the group’s lion in costs.
senior unsecured debt ratings
“Baa2” is a lower-medium grade rating, by one notch to “Baa2”. The move comes after Credit Suisse
just two notches above “junk” or sub-in- suffered billions in losses last year, includ-
vestment grade category. saidThomas Hayes, managing member at ing a US$5.5 billion loss on the default of
Great Hill Capital. US family office Archegos Capital Man-
Moody’s said its downgrade reflected agement and the shuttering of US$10 bil-
challenges the group faces in repositioning Shares in Zurich-based Credit Suisse, lion of supply chain finance funds linked
its investment bank, among other issues. down more than 40% this year, fell nearly to collapsed British financier Greensill.

S&P Global Ratings revised its outlook In June, Credit Suisse was convicted of
on all Credit Suisse Group entities to “neg- failing to prevent money laundering by a
ative” from “stable”. Bulgarian cocaine trafficking gang. It is
appealing the verdict.
“A little late, but not unexpected. Cur- Read also: Citi is hiring 500 in wealth unit
rently one of the worst run banks globally. to lure future buyout titans
It’s been one scandal or trading mistake
after another for years. Hopefully, the new
CEO Ulrich Koerner can turn it around,”

w e d n e s d a y a u g u s t 3 , 2 0 2 2 23 T h e E d g e C E O m o r n i n g b r i e f

MARKETS

CPO RM 3,868.00-192.00 OIL US$ 99.52-0.51 RM/USD 4.4540 RM/SGD 3.2288 RM/AUD 3.0855 RM/GBP 5.4331 RM/EUR 4.5620

Top 20 active stocks

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

CSH Alliance Bhd 216.30 -0.020 0.055 -42.11 76.0

PUC BHD 185.24 -0.015 0.030 -79.31 48.8

Metronic Global Bhd 162.09 -0.025 0.100 -18.09 29.2

Borneo Oil Bhd 91.06 0.000 0.025 -16.67 190.3

Top Glove Corp Bhd 61.87 -0.010 0.980 -62.16 7,847.0

Sapura Energy Bhd 59.41 0.005 0.045 -10.00 719.1

Umedic Group Bhd 55.26 -0.045 0.505 0.00 188.8

Dagang NeXchange Bhd 44.90 -0.030 0.795 4.61 2,509.3

My EG Services Bhd 35.16 -0.015 0.775 -27.57 5,723.8 World equity indices

Jade Marvel Group Bhd 30.10 -0.005 0.850 28.79 278.8

Widad Group Bhd 29.83 0.000 0.350 -4.11 963.4 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

Bintai Kinden Corp Bhd 29.51 -0.015 0.110 -48.84 93.8 (%) (%)
DOW JONES 32,798.40 -46.73 -0.14 INDONESIA 6,988.16 19.37 0.28
Sedania Innovator Bhd 26.30 -0.035 0.385 -25.24 133.7

Ivory Properties Group Bhd 26.18 -0.025 0.045 -64.00 22.1 S&P 500 4,118.63 -11.66 -0.28 JAPAN 27,594.73 -398.62 -1.42

Hibiscus Petroleum Bhd 26.07 -0.035 0.850 4.29 1,710.6 NASDAQ 100 12,940.78 -7.19 -0.06 KOREA 2,439.62 -12.63 -0.52

NWP Holdings Bhd 25.48 0.015 0.240 -2.04 126.3 FTSE 100 7,419.40 5.98 0.08 PHILIPPINES 6,362.30 50.27 0.80

Mestron Holdings Bhd 20.51 0.005 0.355 4.41 330.3 AUSTRALIA 6,998.05 5.08 0.07 SINGAPORE 3,239.15 0.40 0.01

Serba Dinamik Holdings Bhd 19.60 -0.005 0.090 -74.29 333.9 CHINA 3,186.27 -73.69 -2.26 TAIWAN 14,747.23 -234.46 -1.56

Infoline Tec Group Bhd 18.10 -0.010 0.305 0.00 110.8 HONG KONG 19,689.21 -476.63 -2.36 THAILAND 1,588.24 -5.00 -0.31

Velesto Energy Bhd 17.21 -0.005 0.085 -29.17 698.3 INDIA 58,258.59 143.09 0.25 VIETNAM 1,241.62 10.27 0.83

Data as compiled on Aug 2, 2022 Source: Bloomberg Data as compiled on Aug 2, 2022 Source: Bloomberg

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

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

Vsolar Group Bhd 0.010 100.00 1,963.8 -33.33 48.3 Ivory Properties Group Bhd 0.045 -35.71 26,177.8 -64.00 22.1

Key Alliance Group Bhd 0.010 100.00 1,620.8 -33.33 36.8 PUC BHD 0.030 -33.33 185,239.6 -79.31 48.8

AE Multi Holdings Bhd 0.020 33.33 47.5 -33.33 43.3 Green Ocean Corp Bhd 0.010 -33.33 4,669.7 -66.67 21.1

Mercury Industries BHD 0.880 27.54 10.0 -9.28 56.6 Khee San BHD 0.080 -30.43 85.0 -42.86 11.0

Scomi Energy Services Bhd 0.030 20.00 63.8 -45.45 14.0 Meridian Bhd 0.035 -30.00 9,990.5 -46.15 31.6

MCOM Holdings Bhd 0.120 20.00 20.0 2300.00 22.6 Malaysian Genomics Resource 0.710 -29.70 15,446.1 -38.79 88.2

MQ Technology Bhd 0.040 14.29 11,313.4 -20.00 50.0 CSH Alliance Bhd 0.055 -26.67 216,293.3 -42.11 76.0

Sapura Energy Bhd 0.045 12.50 59,412.6 -10.00 719.1 XOX BHD 0.015 -25.00 1,385.2 -50.00 75.8

Turiya Bhd 0.180 12.50 29.9 -12.20 41.2 Mlabs Systems Bhd 0.020 -20.00 746.3 -33.33 29.0

Paos Holdings BHD 0.280 7.69 4.5 -12.50 50.7 Focus Dynamics Group Bhd 0.020 -20.00 282.0 -50.00 127.4

Luster Industries Bhd 0.080 6.67 475.2 -30.43 241.8 Metronic Global Bhd 0.100 -20.00 162,088.8 -18.09 29.2

NWP Holdings Bhd 0.240 6.67 25,482.3 -2.04 126.3 Xidelang Holdings Ltd 0.020 -20.00 1,190.0 -42.86 42.3

Advance Information 0.090 5.88 30.0 -30.77 23.9 Talam Transform Bhd 0.020 -20.00 190.0 0.00 85.9

Harn Len Corp Bhd 1.650 5.77 14,693.5 135.71 336.0 Fast Energy Holdings Bhd 0.030 -14.29 1,074.1 -68.42 22.1

HextarTechnologies Solutions 3.750 5.63 642.2 49.400 482.4 Alam Maritim Resources Bhd 0.030 -14.29 783.3 20.00 46.0

Zecon Bhd 0.380 5.56 15.0 -6.17 56.0 ABM Fujiya Bhd 0.360 -14.29 0.2 -11.11 64.8

Catcha Digital Bhd 0.200 5.26 274.8 25.00 26.9 FSBM Holdings BHD 0.245 -14.04 67.6 32.43 43.5

Emico Holdings Bhd 0.300 5.26 2,118.0 -6.25 36.8 Lay Hong BHD 0.265 -13.11 12,376.7 10.42 196.2

Rhong Khen International BHD 1.420 5.19 4.2 -13.94 275.9 HB Global Ltd 0.100 -13.04 1,659.3 -50 77

South Malaysia Industries 0.410 5.13 13,302.3 105.00 86.1 Sealink International Bhd 0.070 -12.50 1,275.7 -50 35

Data as compiled on Aug 2, 2022 Source: Bloomberg Data as compiled on Aug 2, 2022 Source: Bloomberg

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

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

Heineken Malaysia Bhd 23.60 1.100 760.4 13.24 7,129.5 Malaysian Pacific Industries 31.520 -0.580 230.7 -36.14 6,269.2

Carlsberg Brewery Malaysia 22.84 0.320 156.2 13.75 6,983.3 Kuala Lumpur Kepong Bhd 21.960 -0.540 1,280.6 0.83 23,676.3

HextarTechnologies Solutions 3.75 0.200 642.2 49.40 482.4 LPI Capital Bhd 13.340 -0.300 111.9 -5.12 5,314.4

Mercury Industries BHD 0.88 0.190 10.0 -9.28 56.6 Malaysian Genomics Resource 0.710 -0.300 15,446.1 -38.79 88.2

Hong Leong Industries Bhd 9.06 0.140 9.0 -1.31 2,894.4 AEON Credit Service M Bhd 14.060 -0.280 40.7 3.60 3,589.6

Harn Len Corp Bhd 1.65 0.090 14,693.5 135.71 336.0 Berjaya Food Bhd 3.960 -0.230 770.8 84.19 1,404.1

Rhong Khen International 1.42 0.070 4.2 -13.94 275.9 Petronas Gas Bhd 16.920 -0.220 207.8 -5.45 33,480.1

United Plantations BHD 14.46 0.060 113.0 5.50 5,976.3 Dutch Lady Milk Industries 32.500 -0.200 10.8 -3.04 2,080.0

Press Metal Aluminium 4.95 0.050 6,902.1 -14.36 40,786.1 Ta Ann Holdings Bhd 3.810 -0.200 1,576.3 8.55 1,678.2

Concrete Engineering 0.93 0.045 33.0 6.90 69.4 Pentamaster Corp Bhd 3.790 -0.200 1,438.2 -31.71 2,695.9

PMB Technology Bhd 3.19 0.040 2,116.6 29.89 3,991.0 Tenaga Nasional Bhd 8.300 -0.200 3,404.0 -11.13 47,750.5

Muda Holdings Bhd 1.95 0.040 9.0 -29.35 594.8 Petron Malaysia Refining 4.880 -0.190 347.8 11.42 1,317.6

KLCCP Stapled Group 7.04 0.040 391.0 7.48 12,709.5 Hong Leong Financial Group 19.280 -0.180 108.8 11.19 22,080.3

UMS-Neiken Group Bhd 0.94 0.040 23.0 -18.26 74.0 Chin Hin Group Bhd 4.930 -0.180 855.0 88.89 4,361.6

UMW Holdings Bhd 3.00 0.040 101.3 1.01 3,504.9 Frontken Corp Bhd 2.730 -0.170 4,799.5 -31.75 4,292.7

Apex Healthcare Bhd 3.04 0.040 186.0 15.36 1,450.8 Greatech Technology Bhd 3.710 -0.170 1,590.6 -44.87 4,645.4

Petronas Dagangan Bhd 22.72 0.040 119.2 10.29 22,571.3 Malaysia Smelting Corp Bhd 2.240 -0.160 2,871.6 -31.08 940.8

SHL Consolidated Bhd 1.95 0.030 2.0 -1.52 472.1 PIE Industrial BHD 3.300 -0.160 886.1 -12.54 1,267.3

Paragon Union BHD 1.44 0.030 133.8 -4.00 120.7 Kobay Technology BHD 2.770 -0.160 2,330.2 -54.06 898.0

MR DIY Group M Bhd 2.29 0.030 3,910.6 -4.85 21,586.9 Sarawak Oil Palms Bhd 2.650 -0.160 1,703.0 13.90 2,358.9

Data as compiled on Aug 2, 2022 Source: Bloomberg Data as compiled on Aug 2, 2022 Source: Bloomberg