CEOMorningBrief WEDNESDAY, MARCH 6, 2024 ISSUE 728/2024 theedgemalaysia.com CHINA VOWS TO ‘TRANSFORM’ ECONOMY, SETS AMBITIOUS GROWTH TARGET p16 HOME: Cypark says it has enough funds for its projects despite deferring sukuk coupon payment p2 Govt urged to reassess decision to bring forward foreign workers intake deadline p2 IWH, PLS Plantations in talks with China state-owned firm to develop industrial park, innovation hub in Johor p3 SRC claims US$120 mil out of RM4 bil KWAP loan went to Najib p10 WORLD: Singapore’s exclusive deal with Taylor Swift not a hostile act towards neighbours, PM says p18 WTO backs EU in deforestation case against Malaysia Report on Page 5. Report on Page 3. ANZ puts up 9% AMMB stake for sale via accelerated bookbuilding REUTERS/ THE EDGE FILE PHOTO
WEDNESDAY MARCH 6, 2024 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] HOME KUALA LUMPUR (March 5): The National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the government to reassess the decision to bring forward deadlines for bringing in foreign workers into the country, to avoid disruption to recruitment plans by businesses. The NCCIM’s appeal came after the Immigration Department’s recent announcement of changes in the regulations on the management and intake of foreign workers. Among others, emGovt urged to reassess decision to bring forward foreign workers intake deadline BY CHESTER TAY theedgemarkets.com particularly in sectors that rely heavily on foreign labour, such as the manufacturing, construction, agriculture and plantation industries. “There is a palpable concern among employers who have fulfilled their financial obligations by paying the levy, but are not able to receive the visa with reference by March 31, 2024. The lack of clarity on whether there will be a refund for these levies only adds to the growing uncertainty,” he said. ployers with an active quota for foreign workers are now required to bring these workers into the country by May 31, a shift from the previously set deadline of Sept 30. The department will also cancel unused foreign worker quotas by March 31. NCCIM president Tan Sri Soh Thian Lai said in a statement on Tuesday the abrupt cancellation poses a risk of causing substantial disruption to businesses, KUALA LUMPUR (March 6): Cypark Resources Bhd confirmed that it has deferred a coupon payment due on Monday (March 4) for its subsidiary Cypark Renewable Energy Sdn Bhd, under a RM500 million Musharakah-based perpetual sukuk programme that it set up to finance four solar photovoltaic (solar PV) power plant projects. The group said the move is to conserve cash flow, and to prioritise funds towards the completion and delivery of its 270MW solar projects in Kelantan and Terengganu in the second quarter of this year. “The deferment, allowable by terms of the perpetual sukuk, is a strategic decision as part of CRB’s debt optimisation in aligning facilities against long-term concession assets,” a Cypark spokesperson told The Edge when contacted about the matter. News of it deferring the coupon payment was reported on Bondsupermart, a bond information platform, after midnight on Tuesday. The spokesperson also assured that the group has “sufficient cash flow to achieve the COD (commercial operation date) of its ongoing projects”, with the support of its major shareholder Jakel Capital Sdn Bhd, who subscribed for the lion’s share of the sukuk — RM265 million — in the fourth quarter of 2023, together with available banking facilities from its principal bankers. RHB Investment Bank is the principal adviser/lead arranger for all three tranches of the unrated perpetual that was issued in 2020 and 2023. Cypark Resources also said the sukuk remains secured as it takes 95% cash sweeps from revenue generated, amounting to RM86.5 million currently. All three tranches of the sukuk carry a distribution rate of 6.5% per annum, with “stepped-up distribution rates” that include Cypark says it has enough funds for its projects despite deferring sukuk coupon payment an additional 2% above the distribution rate starting from the first call date, and a yearly increase of 1% on each anniversary thereafter, capped at a maximum rate of 15% per annum. The first call date for tranche 1 (Series 1 to 4) of the perpetual sukuk is Sept 3, 2027. Cypark is currently racing to complete its LSS2 floating solar project in Danau Tok Uban, Kelantan, and its LSS3 solar project in Merchang, Terengganu, which have seen several delays. The LSS2 project’s completion date was previously postponed by nine months to September 2022 from end-2021, while the LSS3’s completion had been pushed to end-2022 from March 2022. In an interview with The Edge last year, Cypark’s management said the group would see improvement in its financials once the projects are completed. “This time next year, when we deliver both the LSS projects, we will be a very different entity. There’s nothing like recurring revenue streams, right? Being actualised. And for both the LSS2 and LSS3, they are 21-year concession assets,” said its chairperson Ami Moris. Cypark posted a net profit of RM1.3 million on a revenue of RM91.8 million in its six months ended Oct 31, 2023. BY INTAN FARHANA ZAINUL theedgemalaysia.com CONTINUES ON PAGE 3
WEDNESDAY MARCH 6, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (March 5): Iskandar Waterfront Holdings Sdn Bhd (IWH) and PLS Plantations Bhd, two entities linked to tycoon Tan Sri Lim Kang Ho, are in talks with a China state-owned company to develop an industrial park and innovation hub in Johor. The two companies inked a memorandum of understanding (MOU) with Shenzhen provincial government-owned Shenzhen Shenyue Joint Investment Co Ltd (SSJI) on Tuesday, for the proposed development of a 1,000-acre Johor-Shenzhen Industrial Park in Ulu Sedili, together with a 50-acre Johor-Shenzhen Innovation Development Hub in Johor Bahru, according to a statement from IWH. “The proposed industrial park, about the size of 1,000 football fields, will be one of the largest purpose-built fully integrated new industrial estates in Johor. It will be designed to provide companies with offices and production facilities, as well as related support services to promote industrial development and collaboration,” the property developer said. “This will be supplemented by the Johor-Shenzhen Innovation Development Hub to be set up within the Johor Bahru central business district, which will provide resources and support for innovative activities and research and development initiatives in Johor,” the group said. PLS Plantations is the landowner of one of the identified locations for the developments, said IWH, adding that SSJI’s parent, Shenzhen Investment Holding Co Ltd, has developed 50 industrial parks covering 8,000 acres in Shenzhen. Lim, who represented both IWH and PLS Plantations at the signing of the MOU, said the two projects would ride on Johor’s industrial wave spurred by the Johor-Singapore Special Economic Zone (JSSEZ) and the Johor Bahru-Singapore Rapid Transit System (RTS). “These two projects are a positive value proposition for Johor and will attract interest from businesses, both domestic and foreign,” he added. IWH, in which the Johor state sovernment owns 37% through Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ), is one of the biggest land developers in Iskandar Malaysia. The IWH group owns more than 4,200 acres of land bank, including prime waterfront land in Johor Bahru. Shares in PLS Plantations closed half a sen or 0.65% lower at 76 sen, valuing the company at RM331.94 million. Read also: Ekovest, Iskandar Waterfront climb in active trade on 10-year development plan in Johor worth RM4.33 bil GDV IWH, PLS Plantations in talks with China state-owned firm to develop industrial park, innovation hub in Johor KUALA LUMPUR (March 5): Australia and New Zealand Banking Group Ltd (ANZ) is putting up 297.72 million shares in AMMB Holdings Bhd for sale, at an indicative price of RM3.80 to RM3.85 per share, according to a term sheet sighted by The Edge. CIMB Investment Bank and BofA Securities are the joint bookrunners for the block of shares being put up via ANZ Funds Pty Ltd. The offer size ranges between RM1.13 billion and RM1.15 billion. The offered price range represents an 8.3% to 9.5% discount to AMMB’s closing price of RM4.20 on Tuesday, down four sen or 0.9% from a day earlier, giving it a market capitalisation of RM13.92 billion. The sale would reduce ANZ’s shareholding in AMMB to 12.7% from 21.7%. Currently, foreign shareholding in Malaysian commercial banks are capped at 30%. The accelerated bookbuilding process is set to close on Tuesday night, followed by settlement on Friday. ANZ has long made known its intention to let go of its block of shares, but ANZ puts up 9% AMMB stake for sale via accelerated bookbuilding BY CHESTER TAY theedgemalaysia.com BY IZZUL IKRAM theedgemalaysia.com there has been no buyers for its stake — the single largest in the sixth largest bank in Malaysia by asset size. AMMB founder Tan Sri Azman Hashim is the second largest shareholder with an 11.8% stake, followed by the Employees Provident Fund’s 9.6%. ANZ had, in the financial year ended Sept 30, 2021 (FY2021), written down the value of its investment in AMMB, following the latter’s RM2.6 billion settlement with the Malaysian government over its role in the 1Malaysia Development Bhd (1MDB) scandal. The write-down reduced the carrying amount of ANZ’s investment in AMMB to A$719 million (RM2.21 billion) in FY2021, from A$1.06 billion in FY2020. By FY2023, the carrying amount had risen to A$881 million, from A$790 million in FY2022. Soh said the decision places a “considerable strain” on businesses, leading to potential delays and disruptions in ongoing and upcoming projects due to the unavailability of foreign workers. “The industry is also faced with the dilemma of what happens to workers scheduled to arrive after May 2024, leaving them in a precarious position without employment,” he said. Soh said the rescheduling of the deadline to bring in foreign workers into the country by May 31 had created a sense of urgency, compelling employers to navigate through immigration processes that remain unclear. “This sudden shift disrupts meticulously planned business operations, necessitating a rapid and often unfeasible adjustment,” he said. Soh said the repercussions of these announcements extend beyond individual businesses, potentially impacting the broader economy and the country’s ability to attract and retain foreign investment. Therefore, he said the NCCIM proposes that the original deadline of Sept 30 be maintained to provide businesses with adequate time to comply with the regulations. “Furthermore, we advocate for a consultative approach involving key industry stakeholders before the implementation of significant policy changes. This would ensure that any future quotas are aligned with the actual needs of various sectors, thereby mitigating potential disruptions. FROM PAGE 2
wednesday march 6, 2024 4 The E dge C E O m o rning brief home Development on Malay reserve land in Selangor only for public infrastructure projects — MB Govt to mitigate impact of new tax measures on vulnerable groups, Amir Hamzah assures Parliament by Chester Tay theedgemalaysia.com Bernama KUALA LUMPUR (March 5): Second Finance Minister Datuk Seri Amir Hamzah Azizan has assured his legislature counterparts that the rakyat, especially those with low income, would not be negatively affected by the government’s new tax measures. The newly appointed self-described technocrat told his Dewan Rakyat colleagues that exemptions under the expanded and hiked service tax ensure that the government’s tax base is broadened to cover only those with additional financial means, while continuing to protect the lower income group’s accessibility to basic needs, such as food, power and water. “As usual, whenever there is a tax hike, it raises a lot of questions from all walks of life, but when the government drafted its tax measures, we took into consideration the approach where we try to reduce the burden on all rakyat, especially those in vulnerable groups,” he told the Dewan Rakyat on Tuesday. Amir Hamzah faced queries from both the government and opposition benches after the recent implementation of a wider service tax. The rate was raised from 6% to 8% starting last Friday (March 1). Rodziah Ismail (PKR-Ampang) asked the government to state its commitment and willingness to introduce more progressive taxation alternatives, such as the inheritance tax and capital gains tax, before re-implementing the goods and services tax (GST), in its efforts to diversify and increase national revenue while addressing the fiscal deficit. Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal (Bersatu-Bukit Gantang) also asked whether there is any preparation at present to reintroduce the GST, which he deemed to be more sustainable and transparent. Datuk Dr Mohd Radzi Md Jidin (Bersatu-Putrajaya) asked whether the sales and service tax (SST) system had generated lower revenue for the government, even though it had a similar negative impact on the rakyat when compared to the GST. ‘Inappropriate to reintroduce GST when rakyat facing high cost of living’ Amir Hamzah, however, said the government is taking a gradual approach to widening the tax base, and that it is not the right time at present to reintroduce the GST when the rakyat, especially the vulnerable groups, have to deal with a higher cost of living. “As explained by Tambun (Prime Minister Datuk Seri Anwar Ibrahim) here before, in terms of fiscal reform, the government takes a progressive approach, in target subsidies and the tax regime. The government has not proposed to implement the GST yet, because it is a broadbased consumption tax. “It is not the right time to reintroduce the GST, as our people, especially those with low income, are facing a high cost of living. Although the inflation rate in 2023 was 2.5%, but for the food and beverage [segment], inflation was nearly 5%, and this is a category that is more pertinent to the people,” he said. Amir Hamzah reiterated that the government will continue to prioritise improving the existing tax system, introducing new tax measures that do not impact the vulnerable groups, before evaluating the need to introduce a new consumption tax, such as the GST. “In terms of differences between the GST and SST, there are differences, but what is important is we look at the government’s capability in utilising the existing tools we have. We also find ways where we can reduce leakages in the existing system. Hence, targeted subsidies are one aspect that is important for the government, because we need to reduce leakages in our expenditure now,” he said. Amir Hamzah also updated the house that the government is still in the midst of enacting new legislation to implement the high-value goods tax at a rate of 5% to 10%, which will be progressive and based on a certain threshold to avoid burdening the low-income group. “This tax will be charged based on a certain threshold value set for each item involved. This tax is also progressive, because it is imposed on those who can afford to buy high-value goods, and does not burden the low-income group,” he said. SHAH ALAM (March 5): The Selangor government does not permit any development on Malay reserve land unless it involves the construction of public infrastructure, said Menteri Besar Datuk Seri Amirudin Shari. He said among the public infrastructure development projects carried out on such land are the construction of the East Coast Rail Link (ECRL) project and Kuala Lumpur International Airport (KLIA), with replacements made according to the same type of Malay reserve land and not exceeding the cancelled reserve land area. He also expressed the state government’s confidence in ensuring the preservation of Malay reserve land in Selangor. “In this regard, we are also considering how the TRM [Malay reserve land] area can be given added value, in line with the announcement of the Madani Housing Scheme on Malay reserve land made by Prime Minister Datuk Seri Anwar Ibrahim during the recent Bumiputera Economic Congress 2024 (KEB 2024),” he told the state assembly meeting here on Tuesday. He was responding to Mohd Razali Saari’s (PN-Sungai Panjang) question regarding the National Audit Report (LKAN), which found that the management of Malay reserve land at the Selangor Land and Mines Office (PTG) was overall inefficient and ineffective. During KEB 2024 over the weekend, Anwar, who is also finance minister, announced the establishment of the Madani Housing Scheme to develop 2,500 affordable housing units on Malay reserve land immediately to ensure the well-being of the community in the cities. Read also: Guan Eng wants govt to reconsider 8% service tax, Bung Moktar prefers GST
wednesday march 6, 2024 5 The E dge C E O m o rning brief home World’s biggest palm oil exchange Bursa Malaysia to launch soy oil futures WTO backs EU in deforestation case against Malaysia Palm oil supply woes to bolster prices this year, Mistry says by Rachel More & Philip Blenkinsop Reuters by Anuradha Raghu Bloomberg by Danial Azhar, Bernadette Christina Munthe & Rajendra Jadhav Reuters GENEVA (March 6): The European Union (EU) scored a victory at the World Trade Organization (WTO) on Tuesday as an adjudicating panel rejected a Malaysian complaint against an EU decision that biodiesel made from palm oil should cease to count as a renewable biofuel. In the WTO’s first ruling related to deforestation, a three-person panel voted by two-to-one to reject Malaysia’s substantive claims, while accepting its complaints over how the measures had been prepared, published and administered. The EU will need to make adjustments, but need not withdraw its measures after the WTO’s first ruling related to different treatment of products according to their risks of greenhouse gas emissions. The dispute centres on EU rules setting a target of 10% of transport fuels from renewable sources. Crop-based biofuels are considered renewable if they meet sustainability criteria. The EU excludes crops grown on deforested land or where there is a high risk they displaced food crops, which were then grown on cleared land. The EU determined that palm oil-based biofuel should be phased out as a renewable by 2030, while crops grown in the bloc, such as sunflower or rapeseed, did not need to be. Malaysia and Indonesia, the world’s two largest palm oil producers accounting for 85% of global exports, then challenged the European Union at the WTO. The WTO panel was the same for both cases and was expected to have also issued a joint ruling on Tuesday. However, Indonesia requested the suspension of the panel’s work on Monday. Parties to WTO disputes normally know panel results before publication. Read also: Malaysia sees Asia, Africa taking palm oil that Europe doesn’t want KUALA LUMPUR (March 5): Bursa Malaysia Derivatives Exchange (BMD), the world’s leading exchange for crude palm oil futures, will launch a soyoil futures contract on March 18 this year, to facilitate arbitrage between soyoil and palm oil contracts, its chairperson said at an industry conference on Tuesday. This would be the first non-palm based edible oil futures to be listed on Malaysia Bursa Derivatives, said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar, after an agreement with Dalian Commodity Exchange (DCE). (March 5): Stagnating production and dwindling stockpiles will underpin palm oil prices relative to other edible oils in the near term, according to veteran trader Dorab Mistry. Production in top grower Indonesia may fall by at least a million tons in 2024, while Malaysian output could remain flat, said Mistry, a director at Godrej International Ltd. The trend is likely to last at least five years, as the industry contends with ageing trees, erratic weather and little improvement in farming practices, he said in an interview. “I think you have to be reasonably bullish on all oils, but particularly palm,” due to output constraints, he said on the sidelines of the Palm & Lauric Oils Price Outlook Conference in Kuala Lumpur. While production of other oilseeds is set to climb this year, “palm is unfortunately the laggard”, he said. These supply problems are upsetting the hefty discount palm typically has to alternative oils. The tropical oil is trading at a premium to soybean oil and sunflower oil in some markets, an unusual phenomenon that’s set to continue until around October when palm production seasonally peaks, said Mistry, who has traded vegetable oils for decades. Benchmark palm oil futures have risen about 6% this year and traded at RM3,942 a ton on Tuesday in Kuala Lumpur. Unpredictable weather is also a major wildcard for crop markets. Benign conditions have generally favoured recent harvests and helped send a gauge of grain and oilseed prices to the lowest level in more than three years. But that may not last. “We dodged bullets in several parts of the world” last year, Mistry said. “We have got to be on our guard.” More from the interview: • US is emerging as an important importer of palm oil, driven by demand for renewable fuels • Palm will eventually regain its market share in India, with total annual imports remaining close to 10 million tons • Shipping disruptions in the Red Sea caused temporary shortages of vegetable oil in India, but the market is continues on page 6 now adapting. Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar speaks at the official opening ceremony of the of 35th Annual Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) on Tuesday, March 5, 2024. The Edge file photo
wednesday march 6, 2024 6 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): The Ministry of Plantation and Commodities is searching for a feasible model that can consolidate independent smallholders to increase palm oil yield, according to its minister Datuk Seri Johari Abdul Ghani. Johari, in his speech at the 35th Annual Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024) on Tuesday, mooted the consolidation of 214,680 independent smallholders into clusters spanning 8,000 to 10,000 hectares of oil palm estates, to be managed by medium or large estates. “As we all know, out of the 5.7 million hectares of oil palm planted area, 27% (1.5 million hectares) are managed on a small scale via smallholders. On average, these smallholders manage plots of land of around four hectares. Indeed, many smallholders are facing difficulties in increasing their yield. “If we are able to consolidate even 30% of independent smallholders, we would have an additional 250,000 hectares of land to be managed efficiently,” Johari said. “These clusters would then be managed just like a medium or large estate by a dedicated team. We are looking at how big companies can help consolidate this. I know this is not going to be easy because it involves land,” the minister explained. Additionally, Johari suggested a more pragmatic way to guarantee timely replanting by smallholders for consistent maximum yields, would be to utilise the technical expertise of major industry players and the Malaysian Palm Oil Board. This would encompass guidance on seeds, clones, fertilisers, as well as pest and disease management. “Surely, achieving a larger scale is crucial to reduce costs per unit and increase productivity. If all smallholders can adopt good management practices of large scale plantations, fresh fruit bunches’ yield can easily increase by two metric tonnes per hectare,” he said. This in turn will increase the country’s crude palm oil production by an additional 600,000 tonnes a year, which is valued at around RM2.4 billion at the current market price, without any additional land use change, he added. Read also: UOB Kay Hian sees CPO prices at RM3,800-RM4,200/tonne for 2024 United Plantations sees palm oil prices ranging between RM3,850 and RM4,250 in 2024 Oleochemicals industry to grow in the near term with Asia-Pacific leading Plantation Ministry mulls smallholders’ consolidation to increase palm oil yield KUALA LUMPUR (March 5): Malaysia’s Sime Darby Plantation Bhd, the world’s largest palm oil producer, expects 2024 production growth to rise at least 5% from last year, as the country’s labour situation improves, a top executive said on Tuesday. Sime Darby Plantation group managing director Mohamad Helmy Othman Basha said the firm’s higher production this year will be driven by reducing its reliance on foreign labour through a shift to automation and local worker recruitment. “We believe there will be a growth in our production (for 2024)... We think it’s above 5%,” Helmy said in an interview on the sidelines of the Palm and Laurics Oil Price Outlook Conference 2024. Sime Darby Plantation’s fresh fruit bunches (FFB) production was 8.71 million tonnes in 2023, a 6% increase from 2022, the company said last month. The firm’s oil extraction rate last year was at 21.18%, slighlty up from 2022. Helmy said the company had sufficient workers and would not need to bring in Sime Darby Plantation sees higher 2024 output as labour situation eases new harvesters until 2026. Malaysia’s palm oil industry, which relies on foreign workers for 70% of its plantation workforce, has suffered a labour crunch in recent years, in part because of the Covid-19 pandemic. The labour shortage eased last year with the return of foreign workers to the country. In a speech at the conference on Tuesday, Malaysian Plantation and Commodity Minister Johari Abdul Ghani said improved labour market conditions in the world’s second-biggest producer of palm oil would increase its 2024 crude palm oil production marginally by about 1% compared to last year. The Malaysian Palm Oil Board expects production at 18.75 million tonnes in 2024, compared to the 18.55 million tonnes in 2023, driven by the improving labour situation. by Danial Azhar & Bernadette Christina Reuters by Syafiqah Salim theedgemalaysia.com “Soyoil contract will enable market participants to seamlessly arbitrage between soybean oil and palm oil prices on the same platform,” he said at the 35th Annual Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2024), here. The BMD will use the settlement price of the soyoil futures contract on the DCE as the basis for calculating the settlement price for its new US dollar-denominated soyoil futures, he added. Price movements in palm oil, soyoil, sunflower oil and rapeseed oil depend on the price trends of other competing edible oils. Currently, traders and refiners hedge their risk in various edible oils on different exchange platforms. Currently, Chicago Mercantile Exchange (CME Group), which merged with the Chicago Board of Trade (CBOT), offers one of the most liquid soyoil futures contract that is used by the industry as a benchmark. The BMD’s new soyoil contract appears attractive, but it may not be easy for BMD to garner large participation due to the already very active existing soyoil contracts offered by CBOT and DCE, said a Mumbai-based dealer with a global trade house. “The new contract needs to bring [in] a lot of participation and liquidity, which will eventually attract more people to trade the contract,” the dealer said. Meanwhile, Abdul Wahid also said that Malaysian palm oil prices are expected to improve in 2024, helped by heightened demand from key markets, but warned that market participants should remain vigilant of possible challenges. from page 5
wednesday march 6, 2024 7 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): PPB Group Bhd, which operates Golden Screen Cinemas (GSC), said on Tuesday it expects a tough year ahead for its film exhibition and distribution business, as the Hollywood writers’ guild strike has affected supply of content in the medium term. To offset the impact, GSC is shifting its focus to local and regional movies, including participating in local film production, to gain better control over the content at its cinemas, Koh Mei Lee, who leads PPB’s entertainment business unit, said at the group’s earnings briefing. GSC is working on co-producing local movies on profit-sharing, with costs ranging between RM8 million and RM20 million for each production, she noted. “After the [Covid-19] pandemic, both Malaysia and Vietnam have witnessed steady recovery [in terms of admission]. However, if you compare it with pre-pandemic levels, the recovery in 2023 was slower than expected, because of the unprecedented strike,” said Koh. Box office revenue in Vietnam recovered to 92% of pre-pandemic levels, thanks to local movies there. However, the recovery was slower in Malaysia at only 75%, she noted. The shift comes at a time when the cinema industry is still reeling from the twin strikes by Hollywood actors and writers, which have disrupted major film and television productions. For PPB, the company’s film-and-distribution segment suffered a larger net loss of RM120 million for the financial year ended Dec 31, 2023 (FY2023), compared with RM17 million for FY2022, mainly due to the impairment of cinema operations and assets. The segment would still be in loss by RM8 million due to higher operating costs if the impairments were excluded. “For Malaysia, what we have is local titles and regional titles. We have seen titles coming from China, Singapore, India and Indonesia helping to supplement the period when Hollywood titles were lacking,” Koh said. For 2024, GSC has three co-productions in the pipeline, including Legasi: Bomba the Movie, Takluk and Reversi. GSC expects contributions from events and sales of food and beverages to partially cushion the impact of the strike, Koh said. Further, she stressed that strong titles would still draw moviegoers, even as consumers are increasingly cautious about their spending. “We notice that when there are strong titles, people still come to the cinema, and it does not affect our premium cinemas, which is a different category. That is one of the reasons why we started the ultra-luxurious Aurum Theatre at the Tun Razak Exchange,” she said. She said the group saw an occupancy rate of over 50% in some of its Imax cinemas over the opening weekend of Dune: Part 2, which indicated that consumers are still willing to pay for a premium experience at cinemas. “We will be looking at some of the pricing adjustments, but it will only be minimal,” she said. “We want to keep it very affordable, so that cinema-going is still one of the most affordable [forms of] entertainment we can get.” GSC expects tough year ahead, to focus on local, regional movies KUALA LUMPUR (March 5): PPB Group Bhd, which owns flour miller FFM Bhd, said there was an increase in local flour consumption following the boycott of Western consumer brands amid the war in Gaza, as more people visited local eateries. “The boycott has affected many Western brands, such as McDonald’s, Starbucks and KFC, even though many franchise holders are locals. However, many local eateries have become beneficiaries of the boycott, because people are going to local eateries to eat more roti canai, [resulting in] local coffee shops experiencing more businesses,” said FFM chief executive officer Jeremy Goon. “We have certainly seen an increase in flour consumption because of that,” Goon told the media and analysts at the group’s earnings briefing on Tuesday. Meanwhile, Goon said PBB had no plans to increase the prices of its consumer products, despite higher operating cost, in order to remain competitive in the market. For the financial year ended Dec 31, 2023 (FY2023), PPB’s consumer product segment saw its profit fall by 23.5% to RM26 million from RM34 million for the previous year, due to higher trade promotion and operating costs. “There will be no price adjustments. Over the last couple of years, there were very minimal price adjustments even when the price of wheat went much higher. We are going to make sure that if there are any price increases, PPB sees increased flour consumption amid boycott of Western brands it will also be minimal, because the competition is going to be intense,” he said. “We will also be mindful of the cost of living, especially when it comes to staple food like bread. It is important that they are as affordable as possible,” he added. Looking ahead, Goon said the group will focus on cost efficiency, as well as new consumer product launches, as it anticipates the consumer market to be challenging with consumers becoming more cautious about their spending. On the grains and agribusiness segment, Goon noted that the group had divested its flour mill in Indonesia to allow better allocation of resources, as the Indonesian market had become increasingly competitive over the years. PPB’s grains and agribusiness segment saw its profit more than double to RM230 million from RM74 million a year ago, due to an improved performance of the flour, feed and livestock divisions. Overall, the group’s full-year net profit stood at RM1.39 billion, falling by 36.5% year-on-year from RM2.2 billion, while revenue dropped 7% to RM5.72 billion from RM6.15 billion, attributable to lower contributions from the divested Indonesian flour operations. At Tuesday’s market close, PPB shares went up two sen or 0.13% to RM15.30, valuing the group at RM21.77 billion. by Hee En Qi theedgemalaysia.com by Hee En Qi theedgemalaysia.com ‘We will also be mindful of the cost of living, especially when it comes to staple food like bread. It is important that they are as affordable as possible,’ says FFM Bhd chief executive officer Jeremy Goon. Shahrill Basri/The Edge
wednesday march 6, 2024 8 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): Investment promotion agency InvestKL reported a record high of RM8.7 billion in foreign direct investment (FDI) in 2023, more than tripling from RM2.79 billion in 2022. This surge in investment, according to its chief executive officer Datuk Muhammad Azmi Zulkifli, underscores the solid confidence of foreign investors in Malaysia’s economic potential, specifically in the city of Kuala Lumpur. “The unprecedented FDI into Greater KL showcases the city’s attractiveness across diverse sectors, such as technology, healthcare, finance, and engineering, signifying a major achievement in our efforts to attract high-value activities. The success demonstrates Greater KL’s maturing business ecosystem, capable of securing and supporting substantial, intricate investments,” he told reporters at a press conference on Tuesday following the announcement. According to Azmi, 12 leading global corporations from the Americas, Europe and Asia spearheaded the investments, and made their entry into Malaysia in 2023. They included digital and technology firm CogniMalaysia records 68 SRI funds worth RM7.7 bil as at Dec 31, 2023 — SC InvestKL drew RM8.7 bil FDI in 2023, tripling 2022’s tally MELBOURNE (March 5): Major Australian companies have shown interest to invest a total of RM24.5 billion in Malaysia, including expansion of existing investments, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the finance minister, said the intention was expressed to him during his meeting with more than 20 Australian companies in Melbourne on Tuesday, the second day of his official visit to Australia. Among the potential investments are from data centre operators AirTrunk and NextDC which plan to spend about RM11 billion and RM3 billion, respectively, he said. Mining firm Lynas is also keen to invest a further RM1 billion while other companies that are potential investors include Fortescue, Macquarie Group and Arnott’s Group, Anwar said. “This is an achievement to be proud of, [as it] shows Australia’s interest and their confidence in the policies that we have announced,” he told the Malaysian media here, adding that these potential investments would create jobs for about 1,200 skilled workers in Malaysia. The amount of potential investments exceeds an earlier estimate made by the Ministry of Investment, Trade and Industry and Malaysian Investment Development Authority, he said. In terms of trade, Anwar said, Malaysia has recorded potential export sales of over RM900 million to Australia, consisting of products such as urea, timber, food and electrical components, in conjunction with his visit. He added that the government has made efforts to clarify any concerns or doubts in order to give Australian investors and businesses confidence in Malaysia’s prospects. Australian companies keen to invest RM24.5 bil in Malaysia — Anwar by Leslean Arshad Bernama by Emir Zainul theedgemalaysia.com by Emir Zainul theedgemalaysia.com zant from the US, healthcare company Demant from Denmark, water and environment services provider Beijing Enterprises Water Group Ltd from China, and the London Stock Exchange Group from the UK. The report by InvestKL showed that the investments in 2023 generated 8,329 highskilled jobs, a substantial rise from the 2,805 positions created in 2022. Notably, a significant 81% of these positions were in the digital and technology sectors. Since its inception in 2011, InvestKL has managed to secure a total of RM29.79 billion in cumulative FDI. To date, 66% of the investment, or RM19.74 billion, has materialised, leading to the creation of over 27,000 executive jobs. Currently, 74% of these positions are filled, providing Malaysians with an average monthly income exceeding RM14,000. “I must commend the multinational corporations, because it’s not just about them coming in and parachuting 100 expats — they are coming in to hire locals, work with [Malaysian] graduates, and looking at adding [locals] to their mid-management and senior management levels, and that progress has been significant. Eighty per cent of the 27,000 jobs today are occupied by Malaysians,” Azmi added. While he did not disclose the agency’s target for 2024, Azmi said he is optimistic that FDI will continue to pour into Malaysia this year, specifically Greater KL, as InvestKL focuses on more investment in the aerospace sector, semiconductor, as well as energy. “I’m optimistic about the outlook for 2024, very encouraged by the momentum that we see, [and I am] confident in the ecosystem that is being developed across the country, especially in KL,” he said. KUALA LUMPUR (March 5): Securities Commission Malaysia (SC) on Tuesday announced that there were 68 sustainable and responsible investment (SRI) funds with a total size of RM7.7 billion in Malaysia as of Dec 31, 2023. Chairman Datuk Seri Dr Awang Adek Hussin said companies and investors are becoming more comfortable with sustainability as an investment approach and they are seeing demand for it. “Globally, trillions of dollars have flowed into funds that tout their environmental, social and governance [ESG] credits. “With the amounts rising, there is also growing concern about greenwashing, greenhushing and green bleaching,” he said at the Institutional Investors Council Malaysia-Securities Industry Development Corp (IICSIDC) Corporate Governance Conference 2024 here on Tuesday. In his opening address at the conference, Awang Adek said the International Organisation of Securities Commissions highlighted that greenwashing remains a fundamental market conduct concern that poses risks to both investor protection and market integrity. He said greenwashing could undermine the fundamental trust in sustainable finance. “If investors lose trust, the financing required for a just transition can be dissipated,” he said. Awang Adek also emphasised the importance of good governance and that governance failure can have a wide-reaching impact beyond financial losses. He said the industry expects institutional investors to play a greater role in driving responsible and sustainable value creation in companies.
wednesday march 6, 2024 9 The E dge C E O m o rning brief
wednesday march 6, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): In the SRC International Sdn Bhd’s US$1.18 billion civil suit against former prime minister Datuk Seri Najib Razak, lawyers for the company have alleged that out of the RM4 billion loan given by Retirement Fund Inc (KWAP) to SRC International over two disbursements in 2011 and 2012, US$120 million made its way to Najib’s AmBank account. Datuk Lim Chee Wee, the lead counsel for SRC International, described the SRC International case as a “multi-jurisdictional fraud” in his opening statement at the trial before High Court (Commercial division) judge Datuk Ahmad Fairuz Zainol Abidin. Lim contended that the company became a victim orchestrated by Najib’s multiple wrongdoings in his various roles as a public officer — namely as Prime Minister and Minister of Finance, Advisor Emeritus of SRC, and in truth a shadow director. “SRC International was set up as a special purpose vehicle on Jan 7, 2011, to invest in conventional and renewable energy, natural resources and minerals sector. “These investments were ultimately meant for the rakyat, with the expectation that those in power would act in good faith for the benefit of the public. Those in power having all the avenues open to them, were duty bound to act solely in a manner that would be of public good. In short, as custodian of the country’s coffers,” he added. Lim said the unthinkable happened in this case, that an abuse of power took place and they would attempt to prove it, and that Najib wielded supreme authority to ultimately cause harm and injury to the company which was set up with the public’s interest in mind. Najib is presently serving a 12-year jail sentence and RM210 million fine, which was recently reduced to six years jail and a RM50 million fine, following a partial pardon by the former King. Lim said a portion of the RM4 billion loan from KWAP made its way to a Swiss BSI account, followed by elaborate transactions with Enterprise Emerging Market Fund in Curacao, and then to Blackstone Asia Real Estate Partners Ltd in British Virgin Island, and then to Singapore, where a sum of US$120 million made its way back to Najib’s bank account. Action against Najib The senior lawyer said the action against Najib is for fraud, breach of fiduciary duties and breach of trust, conspiracy, tort of misfeasance in public office, conversion, dishonest assistance and knowing receipt of assets belonging to SRC International. Najib has pulled in several former directors of SRC International, namely Datuk Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Datuk Mohammed Azhar Osman Khairuddin and Nik Faisal Ariff Kamil, as third party respondents. Nik Faisal, who was Najib’s proxy in managing his AmBank accounts, is still at large having fled the country much earlier. Lim claimed that Najib was the ultimate controller of SRC and its board of directors by virtue of being the chairman of the board of advisors, and in wearing different hats, influenced and directed decisions of the board. He said that Nik Faisal was Najib’s proxy and accessory (to the crime) and that both were beneficiaries of the decisions taken. The actions by Najib and Nik Faisal had resulted in losses of US$1.18 billion, by Hafiz Yatim & Timothy Achariam theedgemalaysia.com SRC claims US$120 mil out of RM4 bil KWAP loan went to Najib which are accountable for pursuant to the purported investment schemes. Following this, SRC International is seeking several declarations in this case namely that Najib is liable for the breaches of duties and trust, that Najib and Nik Faisal are liable for and to pay the US$1.18 billion losses from the investment funds, an order for Najib to compensate the US$120 million and Nik Faisal to pay US$2 million to SRC, and that the company is entitled to trace the amount, as well as general, exemplary and aggravated damages. SRC International co-counsel P Gananathan said the plaintiff would show how the KWAP loans were to be utilised within Najib’s purview and influence. He added that SRC invites the court to observe the role of Nik Faisal who is the company’s former CEO and was the link between Najib and the board of directors of SRC, who were accustomed to act in accordance with the former premier’s instructions. “The directors were updated by Nik Faisal and were essentially adopting shareholder resolutions of SRC by Najib which were brought to the attention of the directors of SRC at board meetings. “The court will also hear evidence of circumstances where the board of SRC International were accustomed to act on the directions or instructions from Najib where there was an absence of shareholders resolutions or minutes,” he added. The action by SRC International is one of 16 suits filed by the company since 2021 to recover the losses. Of the 16 suits, two have been settled and this case against Najib is the first to go to trial. In addition, there is a separate suit filed by SRC International and its subsidiary Gandingan Mentari Sdn Bhd against Najib for RM42 million, where the court granted a Mareva injunction against the disposal of assets by Najib. The first witness to be called in this civil suit is former BSI banker Kevin Swampillai. Read also: Najib and SRC International alleged to have disregarded BNM conditions on RM4 bil KWAP loan Ex-BSI banker says he’s under impression SRC fund transactions undertaken at Najib’s instructions Najib’s lawyer Harvinderjit Singh at the Kuala Lumpur High Court on Tuesday. Datuk Lim Chee Wee, the lead counsel for SRC International Sdn Bhd, described the SRC case as a ‘multi-jurisdictional fraud’ in his opening statement at the trial before High Court (Commercial Division) judge Datuk Ahmad Fairuz Zainol Abidin. PHOTOS by Zahid Izzani/The Edge
wednesday march 6, 2024 11 The E dge C E O m o rning brief home CIMB Islamic, Petronas sign master agreement for shariahcompliant commodity derivatives Paramount aims for RM1.4 bil sales in FY2024, flags potential property price increase Selangor partners TNB to explore RE projects, including a solar park by Anis Hazim theedgemalaysia.com by Izzul Ikram theedgemalaysia.com by Luqman Amin theedgemalaysia.com KUALA LUMPUR (March 5): Paramount Corp Bhd said on Tuesday it aims to sell RM1.4 billion worth of properties in the financial year ending Dec 31, 2024 (FY2024), as the company ramps up launches. The real estate developer plans to launch projects worth RM2.4 billion in gross development value this year, including some delayed projects, group chief executive officer Jeffrey Chew Sun Teong said at an earnings briefing. Some of the projects were stalled in 2023, due to delays in obtaining the necessary approvals, Chew noted. “We are launching a lot more than last year. The reason is not because we are crazy, but RM700 million [worth of properties] was delayed [last year],” he said. Last year, Paramount sold properties worth RM1.12 billion, a record high, with products launched worth RM886 million, compared with RM1.21 billion in 2022. Paramount booked a 37.6% jump in net profit to RM82.84 million for FY2023, from RM60.2 million for FY2022, as revenue rose 19.44% to RM1.01 billion from RM847.46 million, mainly fuelled by improvements in all its business segments, namely property, co-working, investment and others. “We will become more efficient in terms of margins, which will also increase our ROE (return on equity),” he said. “We have been working hard to improve this.” Paramount’s ROE rose to 5.7% in FY2023, from 4.2% in FY2022 and 2% in FY2021. Chew flagged rising costs following an increase in the sales and service tax to 8% effective last Friday, and the company may consider raising prices to protect its margins. The higher rate is ‘neutral from the property developer perspective’, though it may affect ‘other areas’, and the cost increases may trickle into later projects, Chew said. “For any industry, if you find that your cost has gone up, you tend to pass this cost to someone else as a business, and generally, you could create an inflation issue overall.” At the time of writing on Tuesday, shares in Paramount were two sen or 1.83% lower at RM1.07, giving the group a market capitalisation of RM666.32 million. KUALA LUMPUR (March 5): Petroliam Nasional Bhd (Petronas) and CIMB Islamic Bank Bhd have signed an inaugural Tahawwut Master Agreement (TMA) for shariah-compliant commodity derivatives. The TMA is a multi-product framework agreement drafted by the International Swaps and Derivatives Association in collaboration with the International Islamic Financial Market Association, the Petronas group said in a statement on Tuesday. According to the group, the TMA provides the market with globally accepted and standardised terms for Islamic hedging products, which is expected to spur the growth of Islamic hedging products in the international market. KUALA LUMPUR (March 5): The Selangor state government is set to explore potential collaborations with Tenaga Nasional Bhd (TNB) for various renewable energy projects, including the development of a centralised solar park (CSP). The state government, Selangor State Development Corporation (PKNS)-owned Worldwide Holdings Bhd and TNB inked a memorandum of understanding (MOU) for the collaboration on Tuesday. During a press conference after the MOU’s signing ceremony, Selangor Menteri Besar and Worldwide chairman Datuk Seri Amirudin Shari said the MOU is aligned with the National Energy Transition Roadmap (NETR) toward developing a CSP in collaboration with TNB. Amirudin noted that the MOU is also to explore potential collaborations in floating solar, battery energy storage, electric vehicle infrastructure, energy efficiency and other renewable energy projects. According to the NETR, the CSP initiative is to comprise five 100MW largescale solar parks — an aggregate 500MW — to be co-developed by TNB in partnership with small and midsize enterprises (SMEs), cooperatives and state economic development corporations. For the CSP in Selangor, Amirudin said the state government is eyeing land in Hulu Bernam, noting that PKNS already owns land in the area. While Amirudin said parties are merely at the stage of discussing a potential collaboration with details yet to be cemented, he noted that based on TNB’s plans, the CSP project could be completed by 2025 or 2026. The MOU was inked by Selangor state secretary Datuk Haris Kasim, TNB president and chief executive officer (CEO) Datuk Megat Jalaluddin Megat Hassan, and Worldwide CEO Datin Norazlina Zakaria. ‘We are launching a lot more than last year. The reason is not because we are crazy, but RM700 million [worth of properties] was delayed [last year],’ says Paramount Corp Bhd group chief executive officer Jeffrey Chew Sun Teong at the earnings briefing on Tuesday. Suhaimi Yusuf/The Edge
wednesday march 6, 2024 12 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): 7-Eleven Malaysia Holdings Bhd will continue to grapple with soft consumer spending in the near term, Maybank Investment Bank (Maybank IB) said on Tuesday amid broader caution among analysts over the convenience store chain operator’s outlook. Operating costs are also rising, Maybank IB said in a note to clients, and slashed earnings forecasts for FY2024- FY2026 by 8% to 10%. That lowered its target price to RM2.00 from RM2.10, and the research house maintained its “hold” call for the stock. The company’s “pivot towards higher margin fresh food products could partially buffer potential sales downside” if store expansion plans and new fresh food items are rolled out smoothly, Maybank IB said. “Execution is key.” Shares of 7-Eleven have remained largely flat year-to-date amid broader concern over consumption spending outlook on the back of rising costs of living. Maybank IB: 7-Eleven Malaysia grapples with sluggish spending, rising costs KUALA LUMPUR (March 5): Tan Chong Motor Holdings Bhd, which mainly assembles Nissan-branded vehicles, will remain in the red this year amid an onslaught of headwinds, AmInvestment Bank flagged on Tuesday and told investors to “underweight” the stock. AmInvestment is forecasting a net loss of RM57.6 million for Tan Chong in financial year 2024 (FY2024) and cautioned that its share price will remain under pressure if the ringgit stays weak against the US dollar. The research house also noted escalating competition in the industry with the entry of various Chinese car models. Tan Chong “will still be loss making”, AmInvestment said in a note. Industry data showed that the company lost market share in January and “we have yet to see the recovery momentum picking up”, it said. Shares of Tan Chong have plunged 17% in 2023 and are barely higher year-to-date as the company racked up net losses for the fourth consecutive year. The stock was down two sen or 2% at 98 sen at 4.40pm, valuing the car company at RM658 million on Bursa Malaysia. A majority of five out of seven analysts covering Tan Chong rated the stock “sell” with the remaining two recommending a “hold” call. The median 12-month target price stood at 78 sen, a potential of over 20% from current share price. Tan Chong to stay in the red in 2024 amid headwinds — AmInvest Phillip Capital starts coverage on Frontken with target price of RM5.20 by Husnina Ahmad Dahlan theedgemalaysia.com by Surin Murugiah theedgemalaysia.com by Jason Ng theedgemalaysia.com KUALA LUMPUR (March 5): Phillip Capital has initiated coverage on Frontken Corp Bhd with a “buy” rating at RM3.67 and target price of RM5.20 based on a target 43 times price-earnings (PE) multiple on 2025 estimated earnings per share (EPS). In a note on Tuesday, the research house said it likes Frontken for its frontend semiconductor exposure and strong earnings growth (three-year compound annual growth rate: 26%). Key downside risks include customer concentration risk, ringgit strength, and weaker-than-expected customer orders. The house said was positive on Frontken’s long-term prospects on the back of an expectation of a global semiconductor sector recovery and foundries expansion to increase capacity. It said Frontken is poised to leverage the technological advancement of its key wafer fab customers, like 2nm transitions and the ramp-up of mature 3/5nm nodes, and seize growth opportunities alongside investments from partners such as Infineon, Micron, UMC, Global Foundries, and LAM Research in Malaysia and Singapore. Tan Chong’s inventory has swelled to a four-year high of RM822 million at the end of 2023, largely due to built-up stock of Nissan Navara. “This is a popular model, and we think TCM (Tan Chong) should be able to pare down on its inventories quickly,” AmInvestment said. AmInvestment stressed that new car model launches are key to drive sales and for Tan Chong to turn around. “Forward visibility, however, is low” as Tan Chong’s management was reluctant to share more details on upcoming model launches, it noted. Nevertheless, the problems faced by Tan Chong are “structural and require a deep restructuring of the underperforming business segments”, AmInvestment added. Tan Chong reported a net loss of RM54.85 million for the three months ended Dec 31, 2023, while total net loss for the year ballooned to RM128.74 million from RM51.11 million. Out of five analysts covering the stock, three have 7-Eleven Malaysia on “hold” call, including Maybank IB, while one has a “buy” call while one rated the stock “sell”. The median 12-month target price is RM2.00, according to Bloomberg. Maybank IB flagged narrower profit margin from higher advertising-and-promotion activities, fresh food wastage rate and costs related to its new distribution centre in latest FY2023 results. Plans to move up the value chain are “well underway and we believe group margin accretion will gradually flow through” as the number of fresh food products are raised, Maybank IB noted. “That said, subdued consumer spending could delay consumer reception of its new products as consumption habits turn cautious.” 7-Eleven Malaysia registered a record-high net profit of RM221.08 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), thanks largely to divestment gain derived from the stake sale in 75%-owned subsidiary Caring Pharmacy Group Bhd. However, the company posted an operating loss of RM28.11 million in 4QFY2023 amid a sharp 58% rise in administrative expenses to RM98.5 million from longer operating hours, new store expansions and workforce expansion. “Execution is also paramount to ensure cost overruns do not occur, particularly with high food wastages and labour costs,” Maybank IB added.
wednesday march 6, 2024 13 The E dge C E O m o rning brief home news In brie f Keyfield inks underwriting deal with M&A Securities for Main Market listing KUALA LUMPUR (March 5): Keyfield International Bhd has signed an underwriting agreement with M&A Securities Sdn Bhd in conjunction with its initial public offering (IPO) and listing on the Main Market of Bursa Malaysia Securities Bhd. In a statement on Tuesday, Keyfield said the IPO entails the public issue of 209 million new Keyfield shares, representing 26.1% of its enlarged share capital upon listing. Out of this, 40 million shares will be offered to the Malaysian public via balloting, while 24 million shares will be made available to eligible directors, employees and persons. Meanwhile, 73 million shares will be offered to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and the remaining 72 million will be set aside for private placement. M&A Securities will underwrite the 64 million shares made available to the Malaysian public, Keyfield’s eligible directors, and employees and persons who have contributed to the success of the group. Keyfield aims to launch its prospectus by March and list on the Main Market in endApril 2024. M&A Securities is the adviser and underwriter for Keyfield’s IPO. It is also the joint placement agent, together with Maybank Investment Bank Bhd. — by Surin Murugiah Fajarbaru bags RM121 mil contract for JB clubhouse, range complex KUALA LUMPUR (March 5): Fajarbaru Builder Group Bhd has won a RM120.82 million contract to build a clubhouse and a driving range complex in Johor Bahru. The Johor Golf and Country Club (JGCC) project was awarded by Tanjung Nakhoda (M) Sdn Bhd, said Fajarbaru in a stock exchange filing on Tuesday. The contract period is 90 weeks from March 11, 2024 to Nov 30, 2025. Fajarbaru executive chairman Tan Sri Chan Kong Choy said the contract is a testament to the group’s expertise and credibility in the construction industry. “The JGCC project marks our inaugural venture in Johor, and we take great pride in extending our project portfolio across diverse regions, spanning from Penang to the East Coast [of Peninsular Malaysia], encompassing the Klang Valley, and now venturing into the southern reaches of the peninsula. “We are proud to be involved in the project for one of Malaysia’s most iconic golf and country clubs. We will work closely with Tanjung Nakhoda and other players involved in this project to give JGCC a more modern, sophisticated look that meets international standards,” Chan added. — by Chester Tay Actiforce to establish RM50 mil Penang furniture plant KUALA LUMPUR (March 5): Actiforce, which is part of Germany’s Hettich Group — one of the world’s largest manufacturers of furniture fittings — is investing RM50 million to set up a new manufacturing plant in Penang. Actiforce, which originates from the Netherlands, plans to have the plant serve as a hub for research and design, manufacturing and distribution of furniture fittings for the Europe and the US markets, according to a joint statement from Actiforce, InvestPenang and the Malaysian Investment Development Authority or Mida. “It will be instrumental in Actiforce’s global expansion. The move to consolidate manufacturing capabilities in one area, creating a comprehensive one-stop centre, exemplifies Actiforce’s commitment to lean manufacturing and delivering better value to customers. “The company aims to enhance the local economy, generate employment opportunities for the local community, and solidify its position as a key contributor to regional prosperity,” the statement read. — by Luqman Amin Solarvest to equip over 300 Petronas stations with solar power systems KUALA LUMPUR (March 5): Solarvest Energy Sdn Bhd, a subsidiary of clean energy expert Solarvest Holdings Bhd, has been appointed by Gentari Renewables Sdn Bhd to install solar power systems at over 300 Petronas stations across Malaysia. In a statement on Tuesday, Solarvest said the project represents a major milestone in Malaysia’s energy transition journey, contributing to the nation’s clean energy goals. The company said this demonstrates a growing environmental, social and governance (ESG) commitment in the oil and gas industry and solidifies Solarvest’s position as a key player in Malaysia’s energy transition. Solarvest said the project aimed to commence in April 2024 will see the installation of more than 5.4 megawatt peak (MWp) of solar capacity across more than 300 Petronas stations. It said these solar power systems are expected to be operational by 2027. Once energised, it is estimated to offset around 5,035 tonnes of carbon dioxide emissions per year, it said. Solarvest executive director and group chief executive officer Davis Chong Chun Shiong said oil and gas operations account for around 15% of total energyrelated emissions globally, equivalent to 5.1 billion tonnes of greenhouse gas emissions. — by Surin Murugiah Crest Builder’s order book hits RM1.8 bil with RM448 mil new contract KUALA LUMPUR (March 5): Crest Builder Holdings Bhd’s order book has reached a record high of RM1.8 billion after the group bagged a commercial development from Sunway Velocity Three Sdn Bhd for a total contract value of RM448.5 million. In a statement on Tuesday, the company said its unit Crest Builder Sdn Bhd has accepted a letter of award for the construction of the Sunway Velocity 3 commercial development in Kuala Lumpur. Sunway Velocity Three was formerly known as Tanda Warisan Sdn Bhd, a member of the Sunway Group. It said the construction will consist of 1,604 units of serviced apartments in two 60-storey blocks, which also comprise a level of basement car park, 8 levels of elevated car parks, two levels of mezzanine as well as recreation facilities. Crest Builder said the construction works will take approximately 43 months to complete from its scheduled site possession date of March 15 and targeted to be completed by Oct 14, 2027. Crest Builder Holdings Berhad group managing director Eric Yong Shang Ming said with the first contract for the year bagged, he was confident the company we will achieve its RM500 million order book replenishment target. — by Surin Murugiah Penang Chief Minister Chow Kon Yeow said the state is proud to host Actiforce to showcase its capacities and capabilities in Penang, as it further supports the needs of industrial players in next generation technologies and growth strategies.
wednesday march 6, 2024 14 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): Datuk Wan Saiful Wan Jan, the Member of Parliament for Tasek Gelugor from Perikatan Nasional, apologised on Tuesday for his action in issuing a malicious statement against Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat. The apology was made after Dewan Rakyat Speaker Tan Sri Johari Abdul gave the MP an opportunity to explain his action, before a motion by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi was presented to suspend Wan Saiful for six months for accusing Anwar of abusing his power. Wan Saiful in his apology admitted that the statement made when debating on the motion of thanks for the royal address in the Dewan Rakyat on Feb 28 was indeed directed at Anwar. “I did address that sentence to Tambun [MP Anwar]...I retract that sentence, I retract my statement, and I also apologise for the statement. “I also humbly apologise, because in the motion, there was a mention of the Yang di-Pertuan Agong, and therefore I apologise and withdraw the statement, and I hope it is given due consideration,” Wan Saiful said. Following the apology, Johari considered the issue closed, and proposed that Zahid, who is also the rural and regional development minister, to withdraw the motion. “This means the honourable member for Tasek Gelugor has apologised to Tambun and withdrawn his statement. The honourable member has also sought the forgiveness of His Majesty the King. “For that, I accept the [apology] and the minister’s withdrawal of motion. Thus, I consider the matter settled, as an apology has been made, and hopefully, it is aceptable to the minister (Zahid),” Johari said. Zahid later stood up to withdraw the relevant motion listed in the order of business of the Dewan Rakyat meeting on Tuesday. Meanwhile, Opposition Leader and MP for Larut Datuk Seri Hamzah Zainudin stood up to express his appreciation, and praised the decision of the speaker in resolving the issue. Wan Saiful apologises for accusing PM of abuse of power, six-month suspension motion withdrawn KUALA LUMPUR (March 5): Former finance minister Tun Daim Zainuddin’s wife, Toh Puan Na’imah Abdul Khalid, wants to stay her trial at the Sessions Court on her alleged failure to declare her assets to the Malaysian Anti-Corruption Commission (MACC). This was part of Na’imah’s prayer in her application to refer questions of law to the High Court on whether two sections of the MACC Act 2009 contravene articles in the Federal Constitution guaranteeing personal liberty and equality before the law. In the application filed last week, the 66-year-old wants the High Court to make an order that Section 30(5) and Section 36(2) of the MACC Act pertain to disclosure of information per notices served and compliance with the said notices to assist in the anti-graft agency’s investigations. Na’imah, who filed the application through her solicitors at Messrs Raj & Sach, wants the court to make a determination, among others, on whether the two sections encroach on a person’s right against self-incrimination. Na’imah wants High Court to determine question of law regarding asset disclosure, seeks stay of trial Na’imah was charged in January under Section 36(2) of the MACC Act for failure to declare her assets. The single charge carries a punishment of a maximum five-year imprisonment and a fine not exceeding RM100,000. Among the 12 assets that she did not declare were a Mercedes Benz EQC400 and 500 SL AUTO series, seven properties in Kuala Lumpur and one in Penang and Ilham Tower Sdn Bhd and Ilham Baru Sdn Bhd. She has claimed trial to the offence and the court has set bail at RM250,000. A few days later, her husband was charged under the same section over a similar offence. Daim, 85 was charged with not declaring one Amanah Saham bank account, seven vehicles including a Rolls-Royce, an Austin Morris Austin and a Jaguar XJS HE, 38 companies, and 25 properties, some of which are linked to the companies he owns. Among the companies mentioned were Ibu Kota Developments Sdn Bhd, Maya Seni Holdings Sdn Bhd, Menara Ampang Sdn Bhd, Dream Cruiser Sdn Bhd, Landbelt Corporation Sdn Bhd, Avillion Bhd, Avillion Hotel Group, Admiral Cove Development Sdn Bhd and Avillion Hotels International Sdn Bhd, to name a few. The former Cabinet minister has also claimed trial and the court set bail at RM280,000. Daim and Na’imah have claimed that the charges and ongoing investigations against their family are politically motivated. by Tarani Palani theedgemalaysia.com Bernama Toh Puan Na'imah Abdul Khalid, the wife of former finance minister Tun Daim Zainuddin, was charged in January under Section 36(2) of the Malaysian Anti-Corruption Commission Act for failure to declare her assets. Zahid Izzani/The Edge Tasek Gelugor MP, Datuk Wan Saiful Wan Jan, apologises for his statement against Prime Minister Datuk Seri Anwar Ibrahim during a Dewan Rakyat debate on Feb 28 bernama
wednesday march 6, 2024 15 The E dge C E O m o rning brief home KUALA LUMPUR (March 5): Claims of a low number of registrations and information updates in the Central Database Hub (Padu) system due to data integrity issues are inaccurate, said Economy Minister Mohd Rafizi Ramli. He said this is because Padu contains data integrated from various sources, including federal and state governments, agencies and statutory bodies, with all the information profiles of individuals and households. “All the data is already there. What we want is for it to be updated when it is implemented, so that it does not arise why I did not get [help], why I am like that, and so on. “If the data in Padu is considered inaccurate, all the data in the government system from the federal, state, Zakat Board and so on is also inaccurate, because the information comes from these data,” he said in a question-and-answer session in the Dewan Rakyat on Tuesday. He was replying a supplementary question by R Yuneswaran (Pakatan Harapan-Segamat), who wanted to know the government’s measures to ensure more Malaysians register and update information in the Padu system HULU LANGAT (March 5): The Road Transport Department (JPJ) will introduce the electronic driving test and training system (e-Testing) in April. Transport Minister Anthony Loke said the implementation of this system will allow candidates to undergo the test without JPJ officers present in the vehicle while the candidate’s performance evaluation will be conducted electronically (automation) using detectors and cameras. “The results will be generated in real time while improving the integrity of the evaluation process,” he said after a working visit to a driving institute here in conjunction with the implementation of the e-Testing initiative. The development of the e-Testing system was announced in 2020, and the JPJ had already started testing the system in a pilot phase project at several driving institutes. Loke said for now driving test candidates are given the option of either taking the normal test or e-Testing before it is fully implemented in 2030. According to Loke, although driving schools can charge a maximum of RM100, candidates who choose to use e-Testing will receive several benefits, including being able to make a second attempt for each failed test on the same day at no additional cost. Rafizi refutes claims of Padu data integrity issues Loke: JPJ to introduce e-Testing in April Bernama Bernama following concerns about data security. Rafizi said the number of those who had registered and updated their information in the Padu system cannot be compared with the number of Malaysians as a whole, but rather the number of households should be taken into account. “The concern is that current registrations (as of Feb 25) are 3.79 million. We always look at several perspectives — that is, we see how many have been updated compared to the total number of citizens of 30 million people. “When we compare the number of updates, it cannot be compared with 30 million. It should be compared with the number of households. The current He said candidates only need to repeat the test involving the failed elements without having to resit the entire Part II test element (such as manual test execution) and will be given priority in the test reservation list and a RM10 rebate for the issuance of a learner’s driving licence. The implementation of the e-Testing system will enable more candidates to be tested compared to the existing or manual test system in addition to improving the integrity of the driving test system, issuing driving licences, simplifying the audit process as well as monitoring test activities electronically, he said. Currently, there are three driving institutes that are ready to implement the e-Testing system. They comprise Institut Memandu Surfine Hitech, Hulu Langat in Selangor; Pusat Latihan Memandu Berjaya Bhd, Ulu Tiram in Johor; and Institut Lima Bintang Abadi Sdn Bhd in Penang. household is 7.9 million, and since singles and people without families are counted as one household, the number of households is expected to rise to nine million,” he said. Accordingly, he said his ministry will ensure that as many families and individuals will make full use of the final month (before the end of March 31) to register and update information in the system. “Some groups feel that they are not eligible for targeted subsidies, and they don’t want to update [their information]. Some groups will wait until the last minute until March 31 to register, and some may be in a rush to update after the government announces targeted subsidies. “But [all this] does not interfere with planning that all household information data must be available by March 31 to enable the government’s socio-economic programme to move to the net household disposable income method,” he said. Padu was launched on Jan 2, and is open to the public for updates until March 31, with Phase 2 expected to start from April to June 2024, which will involve the development of algorithms according to use case requirements based on data in Padu. “The Transport Ministry encourages all driving institutes to offer the e-Testing system. A grace period of six years will be given to driving institutes to make the transition from manual testing to the e-Testing method,” he said. In the meantime, Loke said the government will start allowing driving institutes to have test centres in order to conduct computerised legal tests at their respective premises to reduce the waiting time for driving test candidates. He also said this enable candidates to take the computerised test and circuit test at the same place, thus making it easier for them. “However, driving institutes which intend to open test centres to conduct computerised tests at their premises are required to also offer e-Testing for circuit tests. “Driving institutes can start applying to open KPP (Driver Education Curriculum) Test Centres on their premises starting from April 2024. Approved driving institutes will be required to also provide an e-Testing system within one year,” he added. Read also: MDEC offers incentives of up to RM200,000 per project to drive digital innovation
WEDNESDAY MARCH 6, 2024 16 THEEDGE CEO MORNING BRIEF WORLD China vows to ‘transform’ economy, sets ambitious growth target BY ANTONI SLODKOWSKI, ANDREW HAYLEY & EDUARDO BAPTISTA Reuters BEIJING (March 5): Chinese Premier Li Qiang announced an ambitious 2024 economic growth target of around 5% on Tuesday, promising steps to transform the country’s development model and defuse risks fuelled by bankrupt property developers and indebted cities. Delivering his maiden work report at the annual meeting of the National People’s Congress (NPC), China’s rubber-stamp parliament, Li also flagged higher defence spending, while hardening the rhetoric on Taiwan. In setting a growth target similar to last year, which will be harder to reach as a post-Covid recovery is losing steam, Beijing signals it is prioritising growth over any reforms even as Li pledged bold new policies, analysts said. “It’s more difficult to achieve 5% this year than last year because the base number has become higher, indicating that the top leaders are committed to supporting economic growth,” said Tao Chuan, chief macro analyst at Soochow Securities. Last year’s uneven growth laid bare China’s deep structural imbalances, from weak household consumption to increasingly lower returns on investment, prompting calls for a new growth model. China started the year with a stock market rout and deflation at levels unseen since the global financial crisis of 2008-09. The property crisis and local government debt woes persisted, increasing pressure on China’s leaders to come up with new economic policies. With awe at China’s economic miracle fading rapidly, some economists have drawn comparisons with Japan’s lost decades since the 1990s, calling for pro-market reforms and measures to boost consumer incomes. “We should not lose sight of worst-case scenarios,” Li said in the Great Hall of the People in Tiananmen Square. “We must push ahead with transforming the growth model, making structural adjustments, improving quality, and enhancing performance.” There was no timeline or concrete details for the structural changes China intended to implement, however, with Li also emphasising stability as “the basis for everything we do”. Li acknowledged reaching the target “will not be easy”, adding a “proactive” fiscal stance and “prudent” monetary policy was needed. The target considers “the need to boost employment and incomes and prevent and defuse risks”, Li said. The International Monetary Fund projects China’s 2024 growth at 4.6%, declining towards 3.5% in 2028. Chinese stocks and the yuan were largely unchanged. “Policymakers seem happy with the current trajectory,” said Ben Bennett, Asia-Pacific investment strategist at Legal And General Investment Management. “That’s disappointing for those that hoped for a bigger push.... There’s rhetorical support for local government debt and the property sector, but the key is how this is applied in practice.” Moderate stimulus China plans to run a budget deficit of 3% of economic output, down from a revised 3.8% last year. Crucially, it plans to issue one trillion yuan (RM660 billion) in special ultra-long term treasury bonds, which are not included in the budget. The special bond issuance quota for local governments was set at 3.9 trillion yuan, versus 3.8 trillion yuan in 2023. China also set the consumer inflation target at 3% and aims to create over 12 million urban jobs this year, keeping the jobless rate at around 5.5%. “China is unlikely to do bazooka-style stimulus,” said Tommy Xie, head of Greater China research at OCBC Bank. “There are still a lot of constraints at the moment in terms of how China can support the economy via fiscal expenditure.” Budgetary plans included an increase in defence spending by 7.2% this year, similar to 2023 — a figure closely watched by the US and China’s neighbours, who are wary about its strategic intentions as tensions rise over Taiwan. China’s defence budget has doubled since President Xi Jinping came to power more than a decade ago. This year marks the 30th in a row of increasing defence expenditure, based on research by the International Institute for Strategic Studies. Premier Li Qiang acknowledged reaching the target “will not be easy”, adding that a “proactive” fiscal stance and “prudent” monetary policy was needed. Read also: China plans US$139 bil special ultra-long debt for economy China vows to mobilize nation as it fights US for tech supremacy REUTERS Read the full story
WEDNESDAY MARCH 6, 2024 17 THEEDGE CEO MORNING BRIEF WORLD SYDNEY/HONG KONG (March 5): A group of lenders to China’s Country Garden has hired Allen & Overy and Deloitte as advisers, three sources with knowledge of the matter said, as creditors to the embattled developer gear up for possible debt restructuring talks. The hiring by the lenders’ group comes as the Foshan-based developer, China’s top private property company by sales, prepares to face a Hong Kong court on May 17 after a creditor filed a liquidation petition against it. The lenders’ group has about US$4 billion worth of credit exposure to Country Garden, two of the people said. The group includes Bank of China and China Construction Bank, one of them added. Country Garden’s debt revamp process started in recent weeks with the hiring of advisers by the developer and a so-called ad-hoc offshore bondholders’ group, after it missed a US$15 million bond coupon repayment last October. Country Garden has total liabilities of US$200 billion. That includes US$11 billion offshore debt now deemed to be in default. Country Garden lenders’ group hires advisers for debt revamp talks, sources say (March 5): China’s property debt crisis is showing new signs of trouble after entering its fourth year, with one of the country’s major state-backed developers placed under unprecedented scrutiny by investors. Some of China’s largest insurers are sounding an alarm over the debt risks of China Vanke Co, according to people familiar with the matter, as shares and bonds of the major developer hit record lows on repayment concerns. At least two Beijing-based insurers that farm out annuity investments told their external portfolio managers late last week to closely monitor Vanke’s credit risks, said the people, asking not to be identified discussing a private matter. One life insurer also told its pension managers to curb exposure, the people added. Meanwhile, Vanke, China’s second-biggest developer by sales, has begun a new round of negotiations with several state insurers in recent days to extend maturities of some private borrowings, the people said. No agreement has been reached so far. In response to queries from Bloomberg, Vanke said Tuesday it has prepared funds to repay its 5.35% dollar bond due on March 11 and that the payment is being arranged orderly. Vanke’s shares were down as much as 4.1% in Hong Kong, after dropping to a record low Monday. Its 3.975% dollar note slumped 1.7 cents to 46 cents on the dollar, set for the lowest since October, Bloomberg-compiled prices show. The warnings about Vanke’s risks are particularly worrisome and threaten to elevate the sector’s debt woes to the next level because the company is seen as a bellwether for Beijing’s support for major developers with strong ties to the state. The company is also one of China’s few remaining and surviving investment-grade builders, following a record wave of defaults that engulfed mostly private-sector builders including former industry giants Country Garden Holdings Co and China Evergrande Group. The growing concerns about Vanke also come at an inconvenient time for authorities as the nation kicked off its seven-daylong annual parliamentary sessions on Tuesday, with key policy topics from the housing crisis to local government debt in focus. Authorities pledged Tuesday to refine real estate policies to provide stronger support for the ailing sector, including treating developers equally regardless of their ownership. “It is no surprise that Vanke is in trouble today,” said Li Kai, chief investment officer of Beijing Shengao Fund Management Co. “Domestic real estate sales have been so poor that it is difficult for companies to hang on, and the market has not seen strong visible support from local governments.” The builder, whose biggest shareholder is Shenzhen Metro Group Co, has faced concerns about its debt obligations since last year. China’s home sales slump accelerated this year, even after regulators stepped up efforts to rescue the beleaguered sector. Vanke had about 1.7 trillion yuan (RM1.12 trillion) of assets and 1.3 trillion yuan of total liabilities as of mid-2023, according to its interim report. The builder said Friday it plans to raise about 1.16 billion yuan in an infrastructure REIT that will list in Shenzhen. It’s not the first time state-linked Chinese developers are in trouble. China South City Holdings Ltd and Sino-Ocean Group Holding Ltd, two such firms, are also on the list of defaulters. However, their sizes and impact are nowhere near Vanke’s. “If Vanke does have a redemption risk, I think it will be comparable to the impact on the market of Country Garden’s default, and will directly hit other private real estate developers that are still struggling to support themselves,” said Beijing Shengao’s Li. Vanke’s Hong Kong-listed shares may remain weak until there is a sales recovery or stronger support from the Shenzhen government, according to JPMorgan Chase & Co analysts, who forecast a 20%-30% yearly drop in the developer’s full-year earnings. Read also: Developer China Vanke assures it can repay US$630 mil dollar bond amid liquidity worries China’s property debt woes deepen as Vanke under closer scrutiny Bloomberg BY SCOTT MURDOCH & CLARE JIM Reuters The warnings about Vanke’s risks are particularly worrisome and threaten to elevate the sector’s debt woes to the next level because the company is seen as a bellwether for Beijing’s support for major developers with strong ties to the state.
WEDNESDAY MARCH 6, 2024 18 THEEDGE CEO MORNING BRIEF WORLD (March 5): Singapore’s Temasek Holdings is in discussions to invest in Microsoft-backed artificial intelligence company OpenAI, the Financial Times reported on Tuesday, citing two people familiar with the matter. Senior executives at Singapore’s state investment firm have met ChatGPT maker’s CEO, Sam Altman, multiple times in recent months, the report added. OpenAI did not immediately respond to Reuters requests for comment, while Temasek declined to comment on the report. Temasek in talks to invest in OpenAI, FT reports Meta’s Facebook, Instagram down for hundreds of thousands of users across globe SYDNEY (March 5): Singapore Prime Minister Lee Hsien Loong said on Tuesday an incentive provided to Taylor Swift to make Singapore the only stop in Southeast Asia on her world tour was not a hostile act towards its neighbours. “(Our) agencies negotiated an arrangement with her to come to Singapore and perform and to make Singapore her only stop in Southeast Asia,” Lee told a press conference in Melbourne, where he is attending a regional summit. “It has turned out to be a very successful arrangement. I don’t see that as being unfriendly.” Swift is currently part way though six sold-out shows in Singapore, her only stop in Southeast Asia. Singapore’s government previously said it had given Swift a grant to play in the city-state, without mentioning the terms of the deal. The announcement annoyed other countries in the region, with the Thai prime minister saying the grant was made on condition that it would be Swift’s only show in Southeast Asia, while a Filipino lawmaker said it “isn’t what good neighbours do”. Last month, Singapore’s tourism board and culture ministry referred to the economic benefits brought by Swift’s concerts around the world due to her popularity, and said the ministry had worked with concert promoter AEG Presents to get Swift to perform in Singapore. Read also: Singapore Air’s budget unit Scoot adds services as tourism picks up Singapore’s exclusive deal with Taylor Swift not a hostile act towards neighbours, PM says BY ALASDAIR PAL Reuters BY ADITYA SONI, JASPREET SINGH & KATIE PAUL Reuters Reuters REUTERS Altman has reportedly been in talks to raise about US$5 trillion to US$7 trillion for a network of AI chip factories. AI startups attracted one out of every three dollars invested last year in the United States, reflecting a surge in investor interest after OpenAI’s ChatGPT grabbed the spotlight and startups raced to develop AI technology. Temasek is an active investor in the tech sector with a portfolio valued at S$382 billion (US$284.21 billion), as of March 31. Some of the companies in the portfolio include Roblox, Tencent and Alibaba. The launch of OpenAI’s ChatGPT in late 2022 brought attention to generative AI technologies, spurring billions in investments on chips and servers required to support the adoption of such applications. Read also: Singapore’s Temasek shortlists Saudi Aramco, Shell in sale of Pavilion Energy assets, sources say BENGALURU/NEW YORK (March 6): Meta-owned social media platforms Facebook and Instagram were down for hundreds of thousands of users on Tuesday in a global outage that has been going on for more than an hour. The disruptions started around 10.00am ET (1500 GMT), with many users saying on rival social media platform X they had been booted out of Facebook and Instagram and were unable to log in. There were more than 300,000 reports of outages for Facebook and 40,000 reports for Instagram on tracking website Downdetector.com. “We’re aware people are having trouble accessing our services. We are working on this now,” Meta spokesperson Andy Stone said in a post on X. The social media giant, shares of which were down 1.5% in late morning trade, has about 3.19 billion daily active users across its family of apps, which also include WhatsApp and Threads. Meta’s status dashboard showed the application programming interface for WhatsApp Business was also facing issues. Though the outage for WhatsApp and Threads was much smaller, with under 200 incident reports each on Downdetector, which tracks outages by collating status reports from several sources including users. Several employees of Meta said on anonymous messaging app Blind that they were unable to log in to their internal work systems, which left them wondering if they were laid off, according to posts seen by Reuters. The outage was among the top trending topics on X, formerly Twitter, with the platform’s owner Elon Musk taking a shot at Meta with a post that said: “If you’re reading this post, it’s because our servers are working”. X itself has faced several disruptions to its service after Musk’s US$44 billion (RM207.84 billion) purchase of the social media platform in October 2022, with an outage in December causing issues for more than 77,000 users in countries from the US to France. REUTERS
WEDNESDAY MARCH 6, 2024 19 THEEDGE CEO MORNING BRIEF WORLD Australia to create US$1.3 bil fund to invest in Southeast Asian projects Prabowo vows smooth transition, pushes privatisation BY GAYATRI SUROYO & STEFANNO SULAIMAN Reuters BY LEWIS JACKSON & RENJU JOSE Reuters JAKARTA (March 5): Indonesia’s presumed president Prabowo Subianto on Tuesday promised a “very smooth” transfer of power later this year and opened the door to privatising state-run firms while maintaining government control of key economic sectors. Speaking at an investment forum, Prabowo, who unofficial vote counts show won the Feb 14 presidential election by a huge margin, also said he believed economic growth could reach 8% annually within the next four or five years. Prabowo said that while the state could continue to regulate and maintain decision-making in strategic areas in Southeast Asia’s biggest economy, the private sector should be allowed to thrive and take the leading role. “Maybe we have to really have a programme of rationalising and privatising many of the state owned enterprises. The state can regulate, the state can (provide) oversight, the state must also have strategic decision-making in the strategic sectors,” he said. “I don’t see for instance why we need to be present in every sector of the economy ... now we must allow private sectors to be more and more dominant.” State companies in sectors such as banking, telecommunication, construction and mining currently play a dominant role in Indonesia’s economy. Prabowo, 72, pledged to continue the policies of incumbent Joko Widodo, who has overseen a big push to modernise infrastructure, and said he aimed to significantly improve tax ratios by widening the tax base, not necessarily by raising taxes. He said his government could widen the fiscal gap to up to 2.8% of gross domestic product (GDP), from under 2% in 2023, and would still comply with the mandatory deficit ceiling of 3% of GDP. Investors have been closely watching Prabowo’s fiscal plans, after previous comments on potentially upping Indonesia’s debt-to-GDP ratio raised alarms. Rating agencies warn his signature promise of free school lunches could be costly. Prabowo pledged to maintain Indonesia’s track record of fiscal prudence, but repeated that he thought there was space to increase public spending and debt, with their ratios relative to GDP being lower than other countries. SYDNEY (March 5): Australia said on Tuesday that it would set up a A$2 billion (US$1.3 billion) finance facility to boost trade and investment in Southeast Asia, as it looks to deepen ties in a region where many are also searching for ways to live with a more assertive China. The fund will focus on clean energy and infrastructure and provide loans, guarantees, equity and insurance. Australia will also tip in an extra A$140 million to extend an existing programme which advises the region on infrastructure projects. Prime Minister Anthony Albanese announced the fund, which was recommended last year by Australia’s envoy to the region, in a speech on Tuesday to business leaders at the Association of Southeast Asian Countries (Asean) summit in Melbourne. is not unlimited time. We must act together, and we must act now.” Two-way trade between Australia and Asean states passed US$178 billion in 2022, greater than Japan or the United States, Albanese said. Australia is hosting the Asean summit, which marks the 50th anniversary of its ties to the bloc, amid growing recognition in Canberra that the region needs to be cultivated at a time when China’s increasing assertiveness is reshaping the Indo-Pacific. Stances on China across the 10-member bloc, range from wary to warm. Philippine Prime Minister Ferdinand Marco Jr told an audience in Melbourne on Monday that his country would grow its security ties with the US and resist when China ignores its maritime rights in the South China Sea. However, at a joint press conference with Albanese hours earlier, Malaysian Prime Minister Anwar Ibrahim criticised growing “China-phobia” in the West. Asked by reporters about China’s push to join regional trade group, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Albanese and Singaporean Prime Minister Lee Hsien Loong said any decision would be by consensus. Beijing has long sought to join the 12-member CPTPP, which includes Singapore, the UK and Japan, but faces opposition from some members including Australia over its coercive trade policies. “Australia and Southeast Asia must together face this moment with a sense of optimism and urgency,” he said. “Because while there is so much untapped potential, there Indonesia’s presumed president Prabowo Subianto pledged to continue the policies of incumbent Joko Widodo, who has overseen a big push to modernise infrastructure, and said he aimed to significantly improve tax ratios by widening the tax base, not necessarily by raising taxes. REUTERS BLOOMBERG
WEDNESDAY MARCH 6, 2024 20 THEEDGE CEO MORNING BRIEF WORLD Alibaba backs US$2.5 bil AI startup in second major 2024 deal Ericsson CEO: Don’t repeat Europe’s mistakes, speed up 5G adoption to prevent economic setback BY LIEW JIA TENG theedgemalaysia.com BY JANE ZHANG Bloomberg (March 5): Alibaba Group Holding Ltd is leading a financing round of at least US$600 million (RM2.84 billion) for Chinese artificial intelligence (AI) startup MiniMax, spearheading its second major deal in the space this year as it deploys capital in pursuit of growth. The two-year-old firm has secured funds from Alibaba and other investors at a valuation of more than US$2.5 billion, according to people familiar with the matter. The fundraise remains in progress but Alibaba and HongShan, formerly Sequoia China, have committed to the financing, one of the people said, asking not to be identified talking about a private deal. Deal terms could still change because negotiations with more investors are ongoing, the people added. Alibaba joins Silicon Valley peers like Microsoft Corp in placing big bets on generative AI, the technology that powers ChatGPT. It led a US$1 billion funding round in recent months RIYADH, Saudi Arabia (March 5): Telefonaktiebolaget LM Ericsson president and chief executive officer Börje Ekholm has warned other countries not to make the same mistake Europe did with the fifth generation (5G) network. The Swedish executive said Europe is moving too slowly with 5G, and other countries should avoid falling behind. He is of the view that 5G will have a big impact on the economy and that it’s important for everyone to embrace it soon. “The US has outgrown Europe over the past 15-20 years. If you look at Facebook, Google, Netflix and Amazon, all these big tech companies are providing services to the consumers by leveraging the 4G network. “Europe pretty much has nothing on that. Europe, by not investing into 4G, actually fell behind. And now, the same thing is actually happening with 5G,” Ekholm said during a fireside chat at the LEAP 2024, a global technology event held at the Riyadh Exhibition and Convention Centre on Monday. He went on to say that the problem for Europe is that it has put itself on a path to becoming a region that has good foods and great arts, but it has “no industry”. “Nowadays, if you visit a European country, most likely you will be landed on a 3G network. It’s a huge issue. Europe had tried to lead with regulation, it didn’t work out. Europe should have led with innovation, but unfortunately, it went the wrong way,” said Ekholm. Telefonaktiebolaget LM Ericsson president and CEO Börje Ekholm is of the view that 5G will have a big impact on the economy and that it’s important for everyone to embrace it soon. According to him, about two decades ago, Europe believed it would not make any money by investing into 4G. That’s because Europe thought its 3G network was good enough, and that that was actually true then. “But what followed later was that Europe failed to see the prospects of what the new technology could bring. And as we have seen, 4G has fully digitalised the consumers, and Europe is now lagging behind,” he observed. Ekholm said the Western Europe had been considered as the leader in mobile connectivity about 20 years ago. However, during the 4G era, most of the applications were created in China and the US. “Why was that the case? That’s because those were the first two countries that rolled out a strong data network for mobile, which is 5G, nationwide,” he said. Stockholm-headquartered Ericsson is a multinational networking and telecommunications giant that currently has 158 live 5G networks across the globe, spanning 67 countries. Closer at home, Digital Nasional Bhd (DNB) had in July 2021 announced that it has appointed Ericsson (Malaysia) Sdn Bhd as its network equipment provider to design and build the National 5G Network at a total cost of RM11 billion. in Moonshot AI, boosting the yearold startup’s valuation also to about US$2.5 billion, Bloomberg News reported. The successive deals show how Alibaba’s keen to place bets on potential future leaders in artificial intelligence, even if they don’t necessarily dovetail: MiniMax, founded by veterans of computer-vision specialist SenseTime Group Inc, competes with Moonshot in developing ChatGPT-like services. Alibaba — once among China’s most prolific tech investors until a government clampdown began in 2020 — is once again on the hunt for growth. New chiefs Joseph Tsai and Eddie Wu are exploring options to turn around a flagging company hammered by two years of regulatory scrutiny and an economic downturn. Read also: Apple China iPhone sales plunge 24% as Huawei’s popularity surges REUTERS BLOOMBERG Read the full story
WEDNESDAY MARCH 6, 2024 21 THEEDGE CEO MORNING BRIEF WORLD Don’t invest in China, Goldman Sachs wealth management CIO warns AMD hits US roadblock in selling AI chip tailored for China BY JANE LANHEE LEE & MACKENZIE HAWKINS Bloomberg BY JACOB GU Bloomberg (March 5): China’s big stock-market declines aren’t enough to warrant putting money in the country, according to the chief investment officer of Goldman Sachs Group Inc’s wealth-management business. “All our clients are asking us that question — given how cheap China appears, people inevitably say, well, has it discounted the worst news?” Sharmin Mossavar-Rahmani said in a Bloomberg Television interview. “Our view is that one should not invest in China.” She cited a host of reasons for her take, including expectations for a steady slowdown in the economy over the next decade. China will struggle with a weakening in the three pillars of growth up to now — the property market, infrastructure and exports, she said. A lack of clarity on China’s policymaking, along with patchy economic data, add to concerns about investing there, Mossavar-Rahmani said. China’s Communist leadership has over the past year emphasised the importance of information security and put curbs on Mossavar-Rahmani said. “Policy uncertainties generally put a little bit of a cap on the equity market.” The benchmark CSI 300 Index last month sank to a five-year low amid worries over the state of domestic demand at a time of escalating geopolitical tensions. It has since rebounded after regulators took steps to curb selling and boost institutional purchases. There may be some short-term stimulus measures coming, but China’s real estate sector hasn’t found the bottom yet, according to Mossavar-Rahmani. “Data is unclear — we really don’t have a good grasp of what growth was last year or what growth will be this year,” she also said, echoing concerns among a number of economists who doubt China’s official economic expansion figures. While China formally published a growth rate above 5% for 2023, “most people think that is not the real growth number — it was actually a lot weaker,” she said. “We don’t recommend clients move into China at this point,” she concluded. what data can be removed from the nation. The statistics bureau also suspended for a time some unemployment figures. On Monday, Beijing announced that the country’s premier — second only to President Xi Jinping — will discontinue a decades-long tradition of annual press briefings at a key gathering. “It is not clear what the overall general direction of policy will be long term,” (March 5): US officials have told Advanced Micro Devices Inc (AMD) that the artificial intelligence (AI) chip it tailored for the Chinese market is too powerful to sell without a licence from the Commerce Department, throwing up a roadblock for the company, as it tries to navigate Washington’s crackdown on exports of advanced technologies. AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers, as it performs at a lower level than what AMD sells outside of China, according to people familiar with the situation, asking not to be identified, because the matter is private. But US officials told AMD it must still obtain a licence from the Commerce Department’s Bureau of Industry and Security in order to sell it, the people said. AMD didn’t immediately have comment. The Bureau of Industry and Security declined to comment. It’s unclear whether AMD will seek the licence. AMD shares were down 1.8% in pre-market trading on Tuesday. The US has been working to limit Chinese access to cutting-edge semiconductors that can develop AI models — and the tools used to manufacture those chips — out of fear that Beijing will gain a military edge. US President Joe Biden’s administration unveiled an initial set of export controls in 2022, and strengthened them in October last year to include more technology, and curb sales to intermediary nations that might undermine the ban. The tighter controls restricted the sale of a processor that leading AI chipmaker Nvidia Corp had designed specifically for China — in compliance with the initial 2022 version of the export rules. The company has since developed new customised, less-powerful products for the Chinese market to align with the 2023 restrictions, and Commerce Secretary Gina Raimondo has said that she is looking into the specifics of those components. The 2022 US ban prevented both Nvidia and AMD from selling their most powerful AI chips to China, forcing them to find workarounds. Nvidia immediately responded with a reduced-performance modified model, whereas AMD hasn’t publicly discussed its efforts to develop a new AI processor for the country. AMD had less of a foothold in the Chinese AI chip industry than Nvidia, which had a large share of that market prior to the ban. When the restrictions took effect in 2022, AMD said it didn’t expect to be materially affected by the rules. But AMD is now going after the AI chip market more aggressively. In December, it launched a new MI300 lineup that will challenge processors from Nvidia. The China-tailored product has been referred to as MI309, according to the people. It’s not clear which Chinese customer was trying to buy the AMD AI chips. That factor could influence whether the company is able to secure a licence, should the chipmaker choose to move forward. Leading Chinese tech firms, including Tencent Holdings Ltd and Baidu Inc, have said they have stockpiled enough powerful chips from Nvidia — the types that are now subject to US controls — to advance their chatbots’ capabilities for another year or two. Meanwhile, Shenzhen-based Huawei Technologies Co is developing its own AI semiconductors and chipmaking capability that could eventually help Chinese companies fill the gap created by the US ban. BLOOMBERG
WEDNESDAY MARCH 6, 2024 22 THEEDGE CEO MORNING BRIEF WORLD (March 5): The US$12 billion (RM56.73 billion) fraud trial of Vietnamese real estate tycoon Truong My Lan began Tuesday as the government presses its anti-corruption campaign across all sectors of society. Lan, chairwoman of Van Thinh Phat Group, or VPT, that held some of the most prestigious properties in the nation’s commercial hub of Ho Chi Minh City, faces charges of allegedly embezzling more than US$12 billion from Saigon Commercial Bank, or SCB, between February 2018 and October 2022 — a sum that surpasses the market capitalisation of most Vietnamese banks. The trial, which could last two months, is being held under tight security at the Ho Chi Minh City People’s Court. Some six tons of documents are part of the proceedings, according to local media. Eighty-six defendants in a dozen or so vans under heavy police escort blaring sirens arrived at the courthouse in the city’s District One around 7am. Lan’s husband, Hong Kong businessman Eric Chu, and niece, VTP chief executive officer Truong Hue Van, also face charges in the case. The trial started about 8.20am with Lan and her husband saying they were in good health after being asked about their condition by Judge Pham Luong Toan. The hearing overseen by two judges and three jury members then proceeded with the reading of charges for each defendant. The country’s largest-ever fraud case is part of a years-long anti-corruption campaign spearheaded by Communist Party Secretary Nguyen Phu Trong. The push has touched all sectors of society and the highest levels of government and comes as the Southeast Asian nation emerges as a global supply chain hub for companies such as Apple Inc and Samsung Electronics Co. The Lan case and others have roiled the nation’s bond, banking and property sectors. Vietnam US$12 bil fraud trial begins amid anti-graft push (March 5): For the first time in more than nine months, Elon Musk is no longer the world’s richest person. Musk lost his position atop the Bloomberg Billionaires Index to Jeff Bezos after shares in Tesla Inc tumbled 7.2% on Monday. Musk now has a net worth of US$197.7 billion (RM934.63 billion); Bezos’ fortune is US$200.3 billion. It’s the first time that Bezos, 60, the founder of Amazon.com Inc., has topped Bloomberg’s ranking of the richest people since 2021. The wealth gap between Musk, 52, and Bezos, which at one point was as wide as US$142 billion, has been shrinking as Amazon and Tesla shares move in opposite directions. While both are among the so-called Magnificent Seven stocks that have propelled US equity markets, Amazon shares have more than doubled since late 2022 and are within striking distance of a record high. Tesla is down about 50% from its 2021 peak. Tesla shares fell on Monday after preliminary data showed shipments from its factory in Shanghai slumped to the lowest in more than a year. Amazon, meanwhile, is coming off its best online sales growth since early in the pandemic. Pay package Musk’s wealth could take a further hit after a Delaware judge struck down his US$55 billion pay package at Tesla, where he’s chief executive. The decision took the side of an investor who’d chalElon Musk loses world’s richest person title to Jeff Bezos lenged Musk’s compensation plan, which had been the largest in history. Options that were included in the voided plan are one of Musk’s largest assets, alongside his stakes in Tesla and SpaceX. The Bloomberg index continues to include them in its calculations of his wealth. The vast majority of Bezos’s fortune comes from his 9% stake in Amazon. He’s the online retailer’s largest shareholder, even after unloading 50 million shares worth about US$8.5 billion last month. For Bezos, being atop the wealth rankings is a familiar perch. He first overtook Microsoft Inc co-founder Bill Gates as the world’s richest person in 2017. But a massive rally in Tesla shares left Bezos jockeying with Musk for much of 2021 for the top spot. Late that year he fell way behind, and didn’t regain the No 1 position until now. Bernard Arnault, 74, the chairman of LVMH Moet Hennessy Louis Vuitton, the world’s largest luxury-goods maker, also ranks among the world’s wealthiest with a net worth of US$197.5 billion. Read also: Former Twitter execs sue Elon Musk for over US$128 mil in severance Tesla’s German plant stops output after suspected arson nearby BY TOM MALONEY & ANNIE MASSA Bloomberg BY JOHN BOUDREAU Bloomberg The wealth gap between Musk and Bezos, which at one point was as wide as US$142 billion, has been shrinking as Amazon and Tesla shares move in opposite directions. Truong My Lan, chairwoman of Van Thinh Phat Holdings (second left) arrives at the Ho Chi Minh City People’s Court in Ho Chi Minh City, Vietnam, on Tuesday, March 5, 2024. The US$12 billion fraud trial of Vietnamese real estate tycoon begun Tuesday as the government presses its anticorruption campaign across all sectors of society. BLOOMBERG BLOOMBERG
WEDNESDAY MARCH 6, 2024 23 THEEDGE CEO MORNING BRIEF WORLD (March 5): The Biden administration on Tuesday unveiled its latest measures to combat rising consumer costs and charges known as junk fees, including an interagency effort to crack down on inflated prices and limiting what banks can charge for late credit card payments. The Justice Department and the Federal Trade Commission will lead a joint “strike force” aimed at stopping illegal corporate behavior that hikes prices on Americans through anticompetitive or fraudulent business practices, said administration officials. The administration will also finalize a rule that slashes credit card fees from an average of $31 down to $8, and another that gives ranchers and farmers more leverage when negotiating contracts with meat packers, officials said. “Late credit card fees have gotten out of control,” Consumer Financial Protection Bureau Director Rohit Chopra said during a press call previewing the moves. The moves to address rising costs come as Democratic President Joe Biden and his allies try to change views among the many American voters unhappy with his economic stewardship. Biden is set to highlight the steps during the sixth meeting of the Competition Council, which he created by executive order to stop anticompetitive practices in sectors from agriculture to drugs and labor. Biden has successfully pressured companies such as Airbnb and Live Nation to limit junk fees — or extra charges — that customers pay when booking concert tickets, hotels and airfares. The White House Council of Economic advisers estimates that the administration’s actions will eliminate more than $20 billion in junk fees annually. The moves to counter junk fees is expected to feature in Biden’s State of Union Speech on Thursday, White House aides say. Chopra said the limit on credit card late fees will save American families $10 billion annually, or an average of $220 per year for the 45 million cardholders who are charged late fees annually. Credit card issuers have been exploiting a loophole created in 2010 that allowed them to escape a federal ban on unreasonable fees by increasing them each year with automatic inflation adjustments, Chopra said. The Department of Agriculture rule, first proposed last September, prohibits among other things retaliation against producers for activities like asserting rights under the Packers and Stockyards Act, which aims to ensure competition in the livestock, meat and poultry markets. “This final rule will provide for clearer, more effective standards by which to govern all of this in the modern marketplace,” Agriculture Secretary Tom Vilsack said on a Monday press call. Biden administration to limit credit card late fees in move against junk fees LONDON (March 5): Major European banks have been cutting their lending to commercial property and have half the exposure of their U.S. peers, making U.S. lenders more vulnerable as office prices plunge further, Morgan Stanley said on Tuesday. Commercial real estate (CRE) markets are in the grip of the biggest downturn since the 2008-9 financial crisis as higher borrowing costs and a spike in vacancy rates driven by more people working from home hit demand for office space. Morgan Stanley analysts said in a research note that regional U.S. banks looked most exposed, alongside German regional lenders - which unlike bigger European banks had been increasing their exposure. “Overall, we think CRE-related issues will not translate into a systemic event, but rather a manageable earnings impact localized to a small set of banks,” the analysts wrote. In a ‘stress scenario’, in which property price falls force banks to recognise losses and borrowers’ credit quality worsens, European banks would face a 3% hit to earnings over three years, which the analysts called “manageable”. That is especially the case as 70% of large-cap European banks reduced their exposure since 2022 to around 5% of their loan book, and nearly all lenders have sub-1% exposure to the United States, where office vacancy rates are 21% versus 8% in Europe, the analysts said. By contrast, German regional banks have more than 20% CRE exposure, US banks far more exposed than Europeans to property crunch, says Morgan Stanley with such loans accounting for most of the loan books of specialist lenders Deutsche Pfandbriefbank and Aareal, Morgan Stanley said. Among large European lenders, Deutsche Bank has the biggest CRE exposure to the U.S. market, but the analysts said it was just 1.5% of its loans and that the bank had already set some money aside to cover potential losses. U.S. large cap banks have about 11% exposure, while mid-cap lenders - some of which have seen their shares plunge in recent weeks - have around 30%, they added. Refinancing risks and vacancy rates have been “key concerns” for the market globally, the analysts said, but they saw “notable differences” between U.S. and European banks. About $660 billion of CRE debt is set to mature in the United States in 2024, against $150-$200 billion in Europe, they estimate. City office vacancy rates range from 32% and 27% in San Francisco and Los Angeles respectively, to 9% in London and 5% in Zurich, according to Morgan Stanley. BY TOMMY WILKES Reuters BY JARRETT RENSHAW Reuters “Late credit card fees have gotten out of control,” Consumer Financial Protection Bureau Director Rohit Chopra said during a press call previewing the moves. REUTERS
WEDNESDAY MARCH 6, 2024 24 THEEDGE CEO MORNING BRIEF WORLD BEIJING (March 5): China will boost its defence spending by 7.2% this year, fuelling a military budget that has more than doubled under President Xi Jinping’s 11 years in office as Beijing hardens its stance on Taiwan, according to official reports on Tuesday. The increase mirrors the rate presented in last year’s budget and again comes in well above the government’s economic growth forecast for this year. China also officially adopted tougher language against Taiwan as it released the budget figures, dropping the mention of “peaceful reunification” in a government report delivered by Premier Li Qiang at the opening of the National People’s Congress (NPC), China’s rubber-stamp parliament, on Tuesday. Tensions have risen sharply in recent years over Taiwan, the democratically ruled island that China claims as its own, and elsewhere across East Asia as regional military deployments rise. Li Mingjiang, a defence scholar at the Rajaratnam School of International Studies (RSIS) in Singapore, said that despite China’s struggling economy, Taiwan is a major consideration in Beijing’s defence spending. “China is showing that in the coming decade it wants to grow its military to the point where it is prepared to win a war if it has no choice but to fight one,” Li said. Since Xi became president and commander-in-chief more than a decade ago, the defence budget has ballooned to 1.67 trillion yuan (RM1.1 trillion) this year from 720 billion yuan in 2013. The percentage rise in military spending has consistently outpaced the annual domestic economic growth target during his time in office. This year the growth target for 2024 is about 5%, similar to last year’s goal, according to the government report. The defence budget is closely watched by China’s neighbours and the US, who are wary of Beijing’s strategic intentions and the development of its armed forces. Based on data from the London-based International Institute for Strategic Studies (IISS), this year’s budget marks the 30th consecutive year of Chinese defence spending increases. Japanese government spokesperson Yoshimasa Hayashi on Tuesday urged greater openness from Beijing, warning of serious international concerns. China’s continuous military spending increases without sufficient transparency were “the greatest strategic challenge ever to ensure the peace and stability of Japan and the international community and strengthen international order”, Hayashi said in Tokyo. South Korea’s defence ministry declined to comment. Australia’s defence ministry did not immediately respond to a request for comment. James Char, a security scholar at the RSIS, said that despite the defence budget’s outpacing gross domestic product (GDP) growth, it had remained at about 1.3% of overall GDP in the last decade and had put no stress on the national coffers. “Of course, the country’s longer-term economic fortunes will determine whether this can be sustained going forward,” Char said. The purchase of new equipment is likely to take up the largest single chunk of the budget as the military works to meet Xi’s goal of full modernisation by 2035, the IISS said in research published last month. That push continues across several fronts, with China producing weapons ranging from warships and submarines to drones and advanced missiles that can be equipped with both nuclear and conventional warheads. Char said tighter management would also be a priority for military leadership after high-profile personnel purges related to weapons procurement. BY YEW LUN TIAN & LAURIE CHEN Reuters China drops ‘peaceful reunification’ reference to Taiwan, raises defence spending by 7.2% The Central Military Commission, China’s top military body, last July ordered a “clean up” of the procurement process and invited the public to report irregularities. The commission has not announced the results of its investigation, but at least nine generals, including four directly in charge of procurement, have been stripped of their title as parliamentarians, a necessary procedure before they can be charged in court. Two former defence ministers, Li Shangfu and Wei Fenghe, have also gone missing without explanation, which in China often means they are under investigation. Li had been in charge of military procurement from 2017 to 2022. When asked whether Li would attend the parliament sessions, parliament spokesman Lou Qinjian told Singapore paper Lianhe Zaobao on Monday that Li “cannot attend because he is no longer a delegate”. In the government work report, China reiterated a call for “reunification” with Taiwan, but added emphasis that it wants to “be firm” in doing so and dropped the descriptor “peaceful”, which had been used in previous reports. Although it is not the first time that China had omitted the word “peaceful”, the change in language is closely watched as a possible sign of more assertive stance towards Taiwan. Taiwan’s Mainland Affairs Council on Tuesday urged China to accept the fact that the two sides are not subordinate to each other, and urged China to create health crossstrait exchanges. Read the full story Read also: Philippines summons China diplomat over ‘aggressive’ actions in South China Sea Since Xi became president and commander-in-chief more than a decade ago, the defence budget has ballooned to 1.67 trillion yuan (RM1.1 trillion) this year from 720 billion yuan in 2013. (From top left) Chinese President Xi Jinping, Premier Li Qiang, National People's Congress (NPC) Standing Committee Chairman Zhao Leji and NPC Standing Committee Vice Chairman Li Hongzhong sing the national anthem at the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China on March 5. REUTERS
WEDNESDAY MARCH 6, 2024 25 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) TWL HOLDINGS BHD 140.00 0.000 0.035 16.67 192.3 HARVEST MIRACLE CAPITAL BHD 126.20 -0.005 0.135 12.50 165.5 SAPURA ENERGY BHD 88.60 -0.005 0.045 0.00 826.9 WIDAD GROUP BHD 85.30 -0.015 0.095 -80.41 294.2 FITTERS DIVERSIFIED BHD 54.40 0.000 0.050 0.00 117.1 EKOVEST BHD 50.60 0.000 0.450 -8.16 1,334.4 HONG SENG CONSOLIDATED BHD 48.90 0.000 0.015 -40.00 76.6 MAG HOLDINGS BHD 48.70 -0.015 0.185 -2.63 303.6 YTL CORP BHD 47.30 -0.050 2.620 38.62 28,729.3 MINETECH RESOURCES BHD 42.70 -0.010 0.145 0.00 258.7 VELESTO ENERGY BHD 39.40 0.000 0.290 26.09 2,382.5 CIMB GROUP HOLDINGS BHD 39.40 0.080 6.530 11.62 69,643.1 PUBLIC BANK BHD 38.80 0.020 4.320 0.70 83,854.2 YTL POWER INTERNATIONAL BHD 33.30 0.010 3.950 55.51 32,007.5 MASTER TEC GROUP BHD 31.40 0.110 0.800 0.00 816.0 JAKS RESOURCES BHD 28.90 -0.005 0.150 -18.92 355.5 MALAYSIAN RESOURCES CORP BHD 27.90 0.000 0.575 29.21 2,568.8 S P SETIA BHD GROUP 26.40 0.015 0.910 13.75 4,050.6 ISKANDAR WATERFRONT CITY BHD 25.30 0.025 0.760 4.11 700.1 MY EG SERVICES BHD 23.90 0.005 0.800 -1.84 5,967.6 Data as compiled on Mar 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.010 100.00 290.3 0.00 36.8 TALAM TRANSFORM BHD 0.020 33.33 39.8 33.33 85.9 METRONIC GLOBAL BHD 0.020 33.33 802.6 33.33 30.6 G3 GLOBAL BHD 0.025 25.00 3,746.6 0.00 94.3 MASTER TEC GROUP BHD 0.800 15.94 31,433.0 0.00 816.0 WMG HOLDINGS BHD 0.195 14.71 8,761.7 95.00 86.7 NOTION VTEC BHD 0.515 14.44 17,010.6 60.94 265.7 GOLDEN PHAROS BHD 0.520 14.29 6,555.2 57.58 73.2 CLASSITA HOLDINGS BHD 0.045 12.50 1,447.3 0.00 55.5 MYETF DOW JONES ISLAMIC 1.000 11.11 10.0 0.91 279.1 AVILLION BHD 0.055 10.00 723.2 10.00 62.3 HEITECH PADU BHD 1.920 9.71 4,821.3 118.18 194.4 PIMPINAN EHSAN BHD 1.180 9.26 10.2 -7.81 81.6 ZELAN BHD 0.060 9.09 540.6 -25.00 50.7 ANEKA JARINGAN HOLDINGS BHD 0.195 8.33 3,407.2 2.63 127.3 ORNAPAPER BHD 1.010 8.02 191.5 10.38 74.9 AXTERIA GROUP BHD 0.140 7.69 1,158.6 -6.67 100.4 PERAK CORP BHD 0.430 7.50 0.2 -10.42 43.0 PARKWOOD HOLDINGS BHD 0.145 7.41 19.9 0.00 39.9 WCE HOLDINGS BHD 1.050 7.14 3,828.7 2.94 3,137.1 Data as compiled on Mar 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.005 -50.00 1,413.8 0.00 54.1 FOCUS DYNAMICS GROUP BHD 0.010 -33.33 473.2 -33.33 63.7 XOX BHD 0.010 -33.33 1,432.6 -33.33 51.9 SAUDEE GROUP BHD 0.020 -20.00 300.8 -20.00 31.2 REKATECH CAPITAL BHD 0.050 -16.67 135.2 -23.08 29.6 REACH ENERGY BHD 0.025 -16.67 106.1 -37.50 53.2 TA WIN HOLDINGS BHD 0.030 -14.29 13,055.4 -25.00 103.1 WIDAD GROUP BHD 0.095 -13.64 85,265.7 -80.41 294.2 ENG KAH CORP BHD 0.385 -13.48 100.0 1.32 45.5 ECOBUILT HOLDINGS BHD 0.070 -12.50 29.0 -22.22 29.5 PDZ HOLDINGS BHD 0.040 -11.11 1,580.2 -20.00 23.5 ARB BHD 0.040 -11.11 973.1 -38.32 50.0 TFP SOLUTIONS BHD 0.040 -11.11 257.4 -27.27 23.4 CHINA OUHUA WINERY HOLDINGS 0.045 -10.00 1,502.8 -18.18 30.1 PERMAJU INDUSTRIES BHD 0.045 -10.00 432.1 -10.00 87.6 SAPURA ENERGY BHD 0.045 -10.00 88,584.3 0.00 826.9 INNITY CORP BHD 0.415 -9.78 19.2 -13.54 57.9 PINEHILL PACIFIC BHD 0.330 -9.59 21.1 -8.33 49.4 DESTINI BHD 0.050 -9.09 22,799.6 -16.67 99.8 RAPID SYNERGY BHD 0.780 -8.77 3,340.7 -97.26 83.4 Data as compiled on Mar 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 119.500 -1.500 100.4 1.62 28,022.8 UNITED PLANTATIONS BHD 23.260 -0.740 883.4 30.67 9,647.9 FRASER & NEAVE HOLDINGS BHD 28.620 -0.580 84.3 2.24 10,497.2 KUALA LUMPUR KEPONG BHD 21.900 -0.420 1,631.6 0.37 24,011.3 HEINEKEN MALAYSIA BHD 22.900 -0.400 303.4 -5.14 6,918.0 KLUANG RUBBER CO MALAYA BHD 4.400 -0.240 3.1 21.55 273.5 ALLIANZ MALAYSIA BHD 18.900 -0.180 99.1 2.49 3,363.6 CARLSBERG BREWERY MALAYSIA 18.720 -0.180 215.4 -2.90 5,723.6 HONG LEONG BANK BHD 19.420 -0.160 834.2 2.75 42,097.1 MALAYSIA AIRPORTS HOLDINGS 8.280 -0.140 1,504.8 12.50 13,815.6 PETRONAS DAGANGAN BHD 22.260 -0.140 244.5 1.92 22,114.3 NPC RESOURCES BHD 1.700 -0.140 6.0 -5.56 193.3 VITROX CORP BHD 7.340 -0.120 164.0 0.69 6,939.4 PRESS METAL ALUMINIUM 4.540 -0.120 8,074.7 -5.61 37,407.9 IOI CORP BHD 3.960 -0.110 5,519.6 0.76 24,566.6 GE-SHEN CORP BHD 2.730 -0.100 894.1 135.34 333.2 SIME DARBY PLANTATION BHD 4.260 -0.100 3,213.8 -4.48 29,460.9 AIRASIA X BHD 1.380 -0.100 5,785.7 -26.20 617.0 APOLLO FOOD HOLDINGS BHD 5.420 -0.080 24.0 -5.90 433.6 HUME CEMENT INDUSTRIES BHD 2.850 -0.080 1,813.9 26.67 1,787.4 Data as compiled on Mar 5, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) AJINOMOTO MALAYSIA BHD 18.260 0.780 146.7 14.84 1,110.2 BINTULU PORT HOLDINGS BHD 5.880 0.230 0.1 14.40 2,704.8 GENTING BHD 4.890 0.200 17,787.4 5.84 18,829.3 HEITECH PADU BHD 1.920 0.170 4,821.3 118.18 194.4 HONG LEONG INDUSTRIES BHD 10.160 0.160 49.2 10.31 3,245.8 FRONTKEN CORP BHD 3.800 0.130 7,868.3 17.28 5,977.0 MASTER TEC GROUP BHD 0.800 0.110 31,433.0 0.00 816.0 PIMPINAN EHSAN BHD 1.180 0.100 10.2 -7.81 81.6 MYETF DOW JONES ISLAMIC 1.000 0.100 10.0 0.91 279.1 AME ELITE CONSORTIUM BHD 1.780 0.080 1,988.5 6.59 1,137.6 PETRONAS GAS BHD 18.000 0.080 4,277.5 3.45 35,617.2 CIMB GROUP HOLDINGS BHD 6.530 0.080 39,363.7 11.62 69,643.1 MALAYSIAN PACIFIC INDUSTRIES 28.900 0.080 139.6 2.48 5,749.1 ORNAPAPER BHD 1.010 0.075 191.5 10.38 74.9 WCE HOLDINGS BHD 1.050 0.070 3,828.7 2.94 3,137.1 PARAGON UNION BHD 3.890 0.070 178.6 39.43 326.1 NOTION VTEC BHD 0.515 0.065 17,010.6 60.94 265.7 GOLDEN PHAROS BHD 0.520 0.065 6,555.2 57.58 73.2 MCE HOLDINGS BHD 1.680 0.060 206.3 16.67 207.6 INARI AMERTRON BHD 3.120 0.060 10,843.8 3.65 11,713.4 Data as compiled on Mar 5, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 38,989.83 -97.55 -0.25 S&P 500 * 5,130.95 -6.13 -0.12 NASDAQ 100 * 18,226.48 -76.43 -0.42 FTSE 100 * 7,640.33 0.76 0.01 AUSTRALIA 7,724.20 -11.59 -0.15 CHINA 3,047.79 8.49 0.28 HONG KONG 16,162.64 -433.33 -2.61 INDIA 73,677.13 -195.16 -0.26 INDONESIA 7,247.46 -29.29 -0.40 JAPAN 40,097.63 -11.60 -0.03 KOREA 2,649.40 -24.87 -0.93 PHILIPPINES 6,905.46 -46.21 -0.66 SINGAPORE 3,107.10 -15.11 -0.48 TAIWAN 19,386.92 81.61 0.42 THAILAND 1,359.26 -3.33 -0.24 VIETNAM 1,269.98 8.57 0.68 Data as compiled on Mar 5, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,986.0048.00 OIL US$ 82.58-0.22 RM/USD 4.7352 RM/SGD 3.5231 RM/AUD 3.0715 RM/GBP 6.0069 RM/EUR 5.1385
Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 WEDNESDAY MAR 6, 2024 SCAN ME No. 8473 PP 2644/12/2012 (031195) MP says sorry Fire and Rescue Department operations head Mohamad Shoki Hamzah said more than 5,000 snakes were captured in the last two months. – PIC COURTESY OF FIRE AND RESCUE DEPARTMENT Beware of online child predators Parents ‘selling’ their children’s charm and charisma on social media for fame and fortune expose them to cyber-paedophilia threat, says lawyer Call for task force to clear employment dispute backlog Watch out for snakes during heatwave Slithery reptiles attracted to residential homes as they prefer shaded areas with food and water during hot season. Report on hpage 3 Report on hpage 5 Report on hpage 4 On top of over 4,000 pending cases, some 2,000 new ones referred to Industrial Court each year, making it very challenging for court chairmen to clear: Malaysian Employers Federation Report on hpage 2 Datuk Wan Saiful Wan Jan apologises to Datuk Seri Anwar Ibrahim in Parliament for issuing malicious statements against prime minister when debating Motion of Thanks for Royal Address on Feb 28.
WEDNESDAY | MAR 6, 2024 2 MP apologises for malicious statements against PM KUALA LUMPUR: Tasek Gelugor MP Datuk Wan Saiful Wan Jan from Perikatan Nasional apologised yesterday for his actions in issuing malicious statements against Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat. The apology was made after Dewan Rakyat Speaker Tan Sri Johari Abdul gave the MP the opportunity to explain before a motion by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi was presented to suspend Wan Saiful for six months for accusing Anwar of abusing his power. In the apology, Wan Saiful admitted that the statement made when debating the motion of thanks for the royal address in the oMove made after Dewan Rakyat Speaker gave Wan Saiful chance to explain before motion by deputy premier was presented to suspend him for six months Selangor Sultan beacon of hope for all Malaysians: Academic KUALA LUMPUR: The Sultan of Selangor Sultan Sharafuddin Idris Shah’s unwavering commitment to fostering racial harmony and national unity serves as a beacon of hope and inspiration for all Malaysians, said National Council of Professors senior fellow Datuk Dr Jeniri Amir. He was commenting on the Sultan’s address at the end of his term on Feb 15 as National Council of Islamic Religious Affairs chairman, in which he spoke on various matters involving Islam. The full text of his █ BYJOSHUA PURUSHOTMAN [email protected] RTD to introduce e-Testing next month HULU LANGAT: The Road Transport Department (RTD) will introduce the electronic driving test and training system (e-Testing) in April. Transport Minister Anthony Loke said the implementation of the system would allow candidates to undergo the test without RTD officers being present in the vehicle while the candidate’s performance evaluation would be conducted electronically using detectors and cameras. “The results will be generated in real time while improving the integrity of the evaluation process,” he said after visiting a driving institute in conjunction with the implementation of e-Testing. The development of the e-Testing system was announced in 2020 and the RTD started testing the system under a pilot project involving several driving institutes. Loke said for now, driving test candidates are given the option of either taking the normal test or e-Testing, before it is fully implemented in 2030. He said candidates choosing e-Testing would receive several benefits, including being able to make a second attempt for each failed test on the same day at no additional cost. – Bernama Loke with driving test candidate Muhammad Ridzwan Chum Abdullah, who was undergoing e-Testing at the Surfine Hitech driving institute in Kuala Lumpur yesterday. – BERNAMAPIC PM meets Aussie business leaders MELBOURNE: Prime Minister Datuk Seri Anwar Ibrahim engaged with business leaders and top executives from 18 Australian companies in Melbourne yesterday during his official visit to Australia, encouraging them to expand their businesses and investments to Malaysia. The company executives were from the manufacturing and services sector involving data centres, finance and trading, Bernama reported. Anwar said Malaysia, under his leadership, has implemented clear and effective policies leading to unprecedented levels of investment. “The Malaysian government, which is currently stable, is a major factor in attracting investors to Malaysia. We have introduced new policies with clarity and as a result, we have secured both domestic and foreign trade investments, the highest ever in (Malaysia’s) history.” Anwar announced last month that Malaysia’s approved investments hit RM329.5 billion in 2023, which was 23% higher compared with 2022, the highest in the country’s history. Foreign investment was the main contributor, accounting for 57.2% compared with domestic investment at 42.8%. Last year, Malaysia and Australia’s bilateral trade stood at US$18.57 billion (RM84.64 billion), with Australia being Malaysia’s 10th largest trading partner. Move to gauge SST hike impact KUALA LUMPUR: Ops Kesan 2024 was launched by the Domestic Trade and Cost of Living Ministry on Friday with the goal of monitoring the impact of the Sales and Service Tax increase from 6% to 8%. In Kedah, state Domestic Trade and Cost of Living Ministry director Muhammad Nizam Jamaludin said 52 premises were inspected as of Monday, with three notices issued to owners of three premises involved in the hotel business, health and wellness centres. “The category of premises inspected are those registered with SST and have sales value of taxable goods that exceed RM500,000 in a year. It involves four categories, namely hotels, health and wellness centres, training centres and laundry outlets. “The checks were conducted to ensure that businesses do not take advantage by indiscriminately increasing prices that do not follow regulations.” In Johor, 10 notices were issued to those in the hotel and spa business and all premises were given four days to provide feedback so that the ministry could examine whether price adjustments made were in line with the Price Control and Anti-Profiteering Act. – Bernama Dewan Rakyat on Feb 28 was indeed directed at Anwar. “I did address that sentence to Tambun (Anwar). I retract that sentence, I retract my statement and I also apologise for that statement. “I also humbly apologise because in the motion, there was a mention of the Yang di-Pertuan Agong, and therefore I apologise and withdraw the statement and I hope it is given due consideration.” Following the apology, Johari considered the issue closed and proposed that Ahmad Zahid, who is also rural and regional development minister, withdraw the motion. “This means the Honourable Member for Tasek Gelugor has apologised to Tambun and withdrawn his statement. The Honourable Member has also sought the forgiveness of His Majesty the King. “For that, I accepted the (apology) and the minister’s withdrawal of motion. Thus, I considered the matter settled as an apology had been made and hopefully, it is acceptable to the minister,” he said. Ahmad Zahid later withdrew the relevant motion listed in the Order of Business of the Dewan Rakyat Meeting. Meanwhile, Opposition Leader and Larut MP Datuk Seri Hamzah Zainudin stood up to express his appreciation and commended the decision of the Speaker in resolving the issue. address was published in theSun on Tuesday. “Through his inclusive leadership, advocacy for interfaith dialogue and unifying presence, Sultan Sharafuddin embodies the values of tolerance, acceptance and solidarity that are essential for Malaysia’s continued progress and prosperity. “His leadership transcends ethnic boundaries, emphasising the importance of embracing Malaysia’s multicultural fabric. Thus, national unity, social cohesion and harmony should be upheld at all times as it is the formula and pillar for a progressive and prosperous nation.” He said Sultan Sharafuddin was correct in saying that any form of divisive narratives, radicalism, extremism and polarisation should be avoided at all costs. “By actively engaging with various communities, the Sultan has set an exemplary precedent for tolerance and acceptance, thereby fostering a sense of belonging among all citizens regardless of race or creed.” Jeniri said efforts by His Royal Highness to promote mutual understanding among different religious groups serve as a bulwark against sectarian tensions, while his initiatives not only promote coexistence but also nurture a shared sense of spirituality that transcends individual faiths. He added that as citizens, it is incumbent upon the people to emulate the Sultan’s example and strive towards a future in which unity triumphs over division, and diversity is celebrated as Malaysia’s greatest strength. On Feb 29, His Royal Highness expressed deep regret over a Feb 20 statement made by PAS president Tan Sri Abdul Hadi Awang titled “Elevation of Islam Must Be Maintained”, which was addressed to religious scholars, judges, lawyers, MPs, state legislative assemblies and the Malay Rulers. In a post on the Selangor Royal Office Facebook page, the Sultan described as “highly inappropriate” Abdul Hadi’s cynical statement indirectly linking His Royal Highness’ address to the need for the Rulers to be focused on the afterlife and not solely on worldly interests. Sultan Sharafuddin also said Abdul Hadi’s statement lacked decorum from the perspective of Malay culture, which always respects and upholds etiquette when expressing views and advice to the Malay Rulers. Ethnic language convention to be held in October KOTA BHARU: The National Colloquial Language Convention, which aims to empower ethnic languages and document the diversity of colloquial languages, will be held in October. National Unity Minister Datuk Aaron Ago Dagang said the convention would be conducted on a large scale, and several eligible states would be selected for documentation purposes. “For instance, Kelantan is likely to be chosen due to the significant importance placed on its dialect by Kelantanese. “Kelantan serves as the best example when discussing unity and harmony among races because it comprises various ethnicities and cultural heritage,” he said, after officiating at the Bicara Bahasa Kolokial: Melestarikan Keberdayaan Bahasa Komuniti Cakno Loghat Kelate here yesterday. He said the writing, spelling and pronunciation of a state’s dialect chosen for the convention would be recorded by the National Archives. – Bernama
WEDNESDAY | MAR 6, 2024 3 PETALING JAYA: The Malaysian Employers Federation (MEF) has called for a special court to be set up as a task force to dispose the thousands of Industrial Court cases that are pending. Its president Datuk Dr Syed Hussain Syed Husman told theSun: “The special court is required as there is a backlog of over 4,000 cases and it will be extremely challenging for Industrial Court chairmen to clear them within a reasonable timeframe. “There are also at least some 2,000 new cases being referred to the Industrial Court each year, which further compounds the problem.” Syed Hussain said initiating the special court as a task force to clear the cases will be helpful to the Industrial Court chairmen, lawyers, companies and plaintiffs involved. He also lauded a move by Human Resources Minister Steven Sim, who recently announced that the tenure of Industrial Court chairmen would be increased to four years from the previous two. Syed Hussain said the length of their tenure was among the issues previously raised by MEF, which stressed that the appointment of Industrial Court chairmen was too short, while the process of appointing them and renewing their appointments was tedious and time-consuming. “Sim’s initiative provides better security and removes the anxiety faced by Industrial Court chairmen on whether their appointments would be renewed at the end of their two-year term. Now that their appointments have a longer tenure, it would attract more qualified practitioners to take up Industrial Court positions, especially those who wish to build a career in the judiciary.” He said just as importantly, the longer tenure would also alleviate some of the issues involved in the renewal process. He suggested Sim consider the possibility of offering permanent appointments to those under fixed-term contracts. “This should be offered to those who have discharged their roles and responsibilities admirably,” he said, adding that MEF is confident that human resources issues will be resolved under Sim’s leadership and that it is keen to work closely with him and ministry officials. “We are confident that Sim and his team will establish a better business environment and enhance Malaysia’s competitiveness to be within the top 12 in the World Competitiveness Index as envisaged under the Malaysia Madani Economy Framework.” Syed Hussain also thanked Prime Minister Datuk Seri Anwar Ibrahim for his constant advice to employers and employees to join forces to build a more talented workforce. “The prime minister has always emphasised the need to attract skilled and experienced workers to improve competitiveness and efficiency. Doing so will not just attract investors and give them confidence that their investments will reap good benefits, it would also ensure that the country raises the bar and enters more high-tech industries as we embrace Industrial Revolution 4.0.” On a separate matter, Syed Hussain called for “greater collaboration” among employers, the government and trade unions to address mental health issues in the workplace. He said mental health is one of the least discussed issues among health officers tasked with managing workplace safety. “The sad part is that mental health is not part of their training and not covered in detail in the existing Occupational Safety and Health Act 1994.” Syed Hussain said the problem is worsened by the stigma attached to mental health, as it is often equated with “madness”. Malaysia recorded an increase of 81% or 1,142 suicide cases as of September 2022, compared with 631 cases in 2020. “This shows that the suicide rate is increasing over the years. The workplace needs to respond to it, failing which employers may lose productive workers,” he said. M’sia secures sevencountry collaboration PUTRAJAYA: Seven countries have agreed to collaborate with Malaysia to expand higher education mediation programmes, said Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir. Zambry, a former foreign minister, said in a statement the agreement was reached following a meeting at the Antalya Diplomacy Forum (ADF) 2024 in Antalya, Turkiye recently. Among those who attended the meeting were the Kosovo deputy prime minister II, who also serves as foreign minister, Uzbekistan foreign minister, Iraqi deputy prime minister and foreign minister, Kyrgyzstan foreign minister, Sri Lanka foreign minister, Libyan Supreme Council president, Turkish Maarif Foundation president and its foreign minister. Zambry said he conducted eight bilateral meetings with foreign ministers at ADF, addressing multiple areas of interest, including matters pertaining to the higher education sector. “We reached agreements with all these countries to expand our national higher education internationalisation programme, encompassing student and lecturer exchange, research and common areas of interest that can be explored together,” he said. Zambry, who represented Prime Minister Datuk Seri Anwar Ibrahim at the forum, said countries such as Iraq and Libya expressed readiness to extend larger scholarships for their students to pursue studies in Malaysia. – Bernama Call to expedite clearance of Industrial Court cases oSet up special task force to help dispose of backlog to ease workload of those involved: MEF chief Fixed-term Parliament Act proposal still under study KUALA LUMPUR: The proposal to enact the Fixed-term Parliament Act is still in the in-depth study stage, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. She said the study carried out by the Legal Affairs Division of the Prime Minister’s Department included an impact study that also took into account the views of the results of engagement sessions with stakeholders and the public regarding the introduction of the Act. “The findings of this comprehensive study will be used for policy consideration by the Cabinet later,” she said in a written reply posted on the Parliament website. Azalina was replying to R.S.N. Rayer (PH-Jelutong), who asked whether the government plans to enact the Fixed-term Parliament Act to prevent party-hopping, that could undermine political stability in Malaysia. She said there are many countries that practise fixed-term parliaments, with an agreed timeline for elections in order to ensure political and economic stability and to prevent any attempt to seize power, that harms the country’s parliamentary democratic system. Azalina also said a fixed-term Parliament could also ensure that all reform agendas and policies can be implemented continuously without interruption. “Malaysia has a fixed term of Parliament, which is five years, as provided under Article 55(3) of the Federal Constitution. “However, the prime minister has the discretion to request the King to approve the dissolution of Parliament before the end of the five-year period at any time for any reason, if His Majesty also agrees.” Meanwhile, in a separate answer regarding the government’s challenges in examining the proposed Act, Azalina said none have yet been identified since it is still at the detailed study stage. She was replying to Datuk Seri Hasni Mohammad (BN-Simpang Renggam), who wanted to know the government’s challenges in examining the proposed Act in order to strengthen the country’s Constitutional Monarchy and Parliamentary Democracy. – Bernama States allowed to have free education policy KUCHING: State governments have the autonomy to implement a policy for free higher education to help children of their residents, said Higher Education Minister Datuk Seri Dr Zambry Abd Kadir. “The state (may have) a policy (of education in which) they want to help their citizens to continue their education at the university and college level. “It is the state’s right because they have the (financial) ability to help their own citizens,” he said after visiting the i-CATS University College here yesterday. He was commenting on Sarawak Premier Tan Sri Abang Johari Abang Openg’s statement on Oct 1 last year on free education at universities and higher education institutions owned by the Sarawak government, that is expected to be implemented in 2026. Abang Johari said Sarawak’s annual revenue projections, which have continued to show an increase since 2020, have given him the confidence to set the expectation. About 25,000 Sarawak students in the state are expected to benefit from the free higher education policy. – Bernama █ BYJOSHUA PURUSHOTMAN [email protected] UNIQUE DECOR ... Visitors admiring the displays at the Export Furniture Exhibition 17th Edition at KL Convention Centre yesterday. The event is being held until tomorrow. – ADIB RAWI YAHYA THESUN
WEDNESDAY | MAR 6, 2024 4 Kedah eyes three million visitors to Langkawi ALOR SETAR: The Kedah state government is implementing various initiatives to ensure the target of three million visitors to Langkawi this year can be achieved, while maintaining the island as a preferred tourist destination. State Tourism, Culture and Entrepreneurship Committee chairman Datuk Mohd Salleh Saidin said based on the current momentum, the state government is confident that the target can be achieved as statistics showed 206,443 tourists were recorded as of Jan 31. Mohd Salleh said airline Flydubai has started a direct flight to Langkawi scheduled for seven times a week since Feb 10, with the arrival of tourists from West Asian countries, Europe and Africa. “Langkawi has also received a number of visitors from 16 luxury cruise ships docked at the Langkawi Cruise Terminal and this shows that Langkawi has never lost its magic. “Various international tourism events are also to be held in Kedah and for this year a total of 26 events have been and will be held on this legendary island, including the Royal Langkawi International Regatta 2024, Ironman Langkawi, Langkawi International Half Marathon and others,” he said. Mohd Salleh was replying to a question by Bakar Arang MP Loh Wei Chai on the strategy and initiatives implemented to bring the number of tourists to Langkawi to the level before the Covid-19 pandemic, at Kedah state assembly sitting yesterday. – Bernama BOT financing to be used for expressway KUALA LUMPUR: The construction of the proposed 122km East Coast Expressway (ECE) Phase 3 from Kampung Gemuroh in Kuala Terengganu to Kampung Tunjong in Kota Bharu will use the build-operate-transfer (BOT) financing model. Deputy Works Minister Datuk Seri Ahmad Maslan said through the BOT model, the concessionaire will finance the construction of the expressway through the bank and get a return of profit via the collection of toll payments. When completed within a certain period, the project will be returned to the government. “We have the ECRL (East Coast Rail Line) project, we have the CSR (Central Spine Road), so the ministry’s view of the financing model for this proposed ECE will use the BOT model. “(The expressway) is an inter-city highway, which is usually only used during weekends in contrast to the intra-city highway, which is heavily used five days a week, so this funding model needs to be carefully researched to benefit all parties,” he told Dewan Rakyat yesterday. – Bernama No plan to adjust M’sian Standard Time KUALA LUMPUR: The government has no plans to adjust the standard time in Peninsular Malaysia from GMT+8 to GMT+7, said Deputy Investment, Trade and Industry Minister Liew Chin Tong. He added that such a change in time would only burden the people. “Generally, the one-hour difference between GMT+8 and GMT+7 does not affect daily life. The human body clock can adapt well to the environmental changes with this slight difference,” he said this at the Dewan Rakyat yesterday. He was responding to a question from Datuk Mumtaz Md Nawi (PN-Tumpat) if the Investment, Trade and Industry Ministry has plans to consider changing the Peninsular Malaysia time to GMT+7 based on the geographical position and actual movement of the sun so that the people can live their daily lives according to their body clock. – Bernama Be wary of slithery visitors during hot spell PETALING JAYA: The public have been warned to be on their guard as the current sweltering heat, despite occasional showers, is attracting unwanted guests into urban areas and homes. Snakes such as venomous king cobras, pythons, Malayan krait, banded krait and pit vipers have been making their way into these areas to escape the hot weather. The Malaysia Civil Defence Force reported that it has recorded 104,859 cases of snakes captured in the country in 2023, with Selangor recording the highest number at 16,160 cases. Meanwhile, Fire and Rescue Department operations head Mohamad Shoki Hamzah said in the last two months of this year, it had attended to a total of 5,094 cases of snake capture. “In January, the department captured 891 snakes in Selangor. This was followed by Johor with 347 and Perak 290. “The majority of captured snakes were cobras, kraits and pythons. During the captures, five of our personnel were injured after being bitten and sprayed with venom.” Shoki said while the majority of snake oSnakes attracted to dark and damp places where they can hide to regulate body temperature, hydration levels █ BYQIRANA NABILLA MOHD RASHIDI [email protected] habitats are in rural areas where they naturally hide in forested areas and thick vegetation, they can also be found in urban environments. “Snakes are attracted to dark and damp places, which are usually secluded spots where they can hide to regulate their body temperature and hydration levels. “As cold-blooded reptiles, snakes prefer areas that are shaded and with food and water sources during the hot season. Hence, the most appealing place would be in residential areas, especially homes that can provide hiding spaces such as in the kitchen or store room,” he said. Shoki added that snakes prefer to avoid interaction with humans unless it is by chance as they fear being harmed. However, he said when they start to feel threatened, they may become aggressive and attack. “If it is a venomous snake, it can spray its venom when it is near humans. Malaysia has around 27 species of venomous snakes with the main ones being the king cobra, Malayan krait, banded krait and pit vipers which can be a serious threat. “Most venomous snakes have fangs and many have triangular-shaped heads. When we see a snake raising its head about two feet off the ground, it means it can strike us from a distance of about two feet, so it is best not to approach it but merely observe where it goes while calling the fire department for assistance.” Shoki said dark areas may also attract other animals such as rats or frogs, which serve as food sources for snakes. As such, homeowners need to ensure their homes are clean and free of clutter. He said wood piles and rubbish should be disposed of properly. Extra caution should be given to water holes and toilets where snakes also lurk, adding that it is essential to maintain a clean kitchen and not leave food exposed as they might be attracted to it. Shoki warned the public to avoid provoking snakes if they come across them inside their houses as doing so could lead to defensive or aggressive behaviour. “Snakes typically don’t attack unless they feel threatened, so ensure you maintain a safe distance from them and immediately call us for help,” he said. During the hot season, the public often visit recreational areas such as waterfalls and rivers to cool off. However, Shoki said snakes can also inhabit such locations. “Waterfalls and rivers can attract snakes that are seeking shelter, water or prey. So it is important to remain vigilant and take precautions even in seemingly serene outdoor environment,” he said. King’s scholarship programme applications open PUTRAJAYA: The Public Service Department (PSD) has invited qualified Malaysian citizens to apply for the 2024 King’s Scholarship. It said the programme is a highly prestigious government-sponsored scholarship for pursuing Master’s and PhDs in the fields of science, technology, engineering and mathematics, economics, law, Islamic finance or artificial intelligence at institutions of higher learning both locally and abroad. “Applicants can complete the application form online through the portal bmipenajaan.jpa.gov.my between March 4 and March 29, 2024,” said the department in a statement. The completed application form together with relevant supporting documents must reach the PSD before or on April 5, either by delivery or post. Among the requirements for the scholarship is the candidates should be Malaysian citizens aged below 35 as at Jan 1. Other requirements include excellent academic results, with a Cumulative Grade Point Average of at least 3.75 or first-class, or its equivalent at the Bachelor’s Degree or Master’s Degree level. Another condition is the candidates have been offered full-time studies or have started full-time studies in the year of the offer at institutions of higher learning listed by the PSD. “Candidates at the Master’s level are required to prepare a research paper or dissertation, as only the research mode is allowed.” Being active in creative and innovative work such as writing and design, or technology and so on, is an advantage for Master’s Degree candidates and mandatory for PhD candidates. Priority will also be given to candidates active in co-curricular or community activities. According to the PSD, only applications that meet the requirements and passed further screening by the department would be shortlisted to attend the interview. Further information regarding the scholarship can be obtained by visiting bmipenajaan.jpa.gov.my or calling 03-8885 3053/3879 on weekdays from 9am to 5pm or by emailing [email protected]. – Bernama BUDDING TALENT ... A total of 10 underprivileged youths received scholarships under the Chef Muda Mahsuri programme to pursue their dreams to be chefs, during a ceremony in Petaling Jaya yesterday. – ADIB RAWI YAHYA/THESUN
WEDNESDAY | MAR 6, 2024 5 Daim’s wife applies to challenge charge KUALA LUMPUR: The wife of former finance minister Tun Daim Zainuddin has filed an application to challenge the validity of a charge brought against her under the Malaysian Anti-Corruption Commission (MACC) Act. Toh Puan Na’imah Abdul Khalid, 66, pleaded not guilty at a Sessions Court on Jan 23 to the charge of failing to declare her assets, including Menara Ilham and several properties in Kuala Lumpur and Penang. Na’imah filed a notice of motion last Thursday under Section 30(1) of the Courts of Judicature Act 1964, requesting the Sessions Court to refer to the High Court questions regarding the effect of provisions of the Federal Constitution. The questions include whether sections 30(5) and 36(2) of the MACC Act 2009, which were the charge sections against her, violate a person’s right to be protected from involvement in an offence and the right not to be compelled to give evidence in an offence to be used in a proceeding against oneself and/or the right to a fair trial. She also wants the court to determine whether Section 36(2) of the MACC Act 2009 infringes articles 5 and 8 of the Constitution, and if it is unconstitutional and void. Na’imah was charged with not declaring her assets by deliberately giving a written statement under oath that did not comply with the terms of a notice, dated Nov 8 last year, which was sent to her by an officer from MACC with the rank of commissioner on Nov 1 last year. The properties include Menara Ilham, two companies (Ilham Tower Sdn Bhd and Ilham Baru Sdn Bhd), two luxury cars, a house in Persiaran Bukit Tunku, four plots of land in Bukit Tunku and one plot of land each in Penang and Taman Tun Dr Ismail, Kuala Lumpur. – Bernama RM3.5mil cash, gold bars lost in burglary KUALA LUMPUR: A woman found her safe, filled with gold bars and cash amounting to RM3.5 million, stolen from her house in Padang Balang, Sentul on Sunday. Wangsa Maju police chief Supt Ashari Abu Samah said the items stolen in the burglary, believed to have occurred between 10pm and 12am, also included several designer handbags and jewellery, which belonged to the family of the 43-yearold woman. He said the victim and her family were not at home during the incident and a police report was later lodged by her. Ashari said the case is being investigated under Section 457 of the Penal Code. He urged anyone with information to contact the police headquarters at 03-9289 9222 or the Kuala Lumpur police hotline at 03-2115 9999, or visit the nearest police station. – Bernama Passengers flee after bus catches fire KUALA LUMPUR: Seven passengers of a RapidKL bus were asked by the driver to evacuate the vehicle immediately after it caught fire in Jalan Syed Putra at about 8am yesterday. Hang Tuah Fire and Rescue station senior operations commander Mohd Suhaimi Mohd Razali said the station received a call at 8.06am before 16 firefighters and six fire engines from the Hang Tuah and Seputeh stations rushed to the location. He said a motorcyclist alerted the bus driver of the flames at the back of the bus. “The bus driver immediately stopped the vehicle by the roadside and turned off the engine.” He added that the bus was 90% destroyed and the cause of the fire was being investigated. – Bernama Predator risks in pursuit of social media fame for kids PETALING JAYA: Bar Council Child Rights Committee chairperson Kokila Vaani Vadiveloo has warned parents to be vigilant about potential risks posed by predators targeting children on social media platforms. “As parents become more familiar with technology, they are sharing images and creating stories online about their children, with some hoping to make money by increasing their social media followers and to work with brands. “This is especially attractive among Malaysian parents because raising children today is very expensive.” Kokila said while the phenomenon may seem harmless on the surface, potential dangers posed by child predators or paedophiles who target children on social media platforms are real. She said Instagram, YouTube and TikTok offer avenues for fame and fortune, prompting many parents to capitalise on them to “sell” their children’s charm and charisma without fully understanding the risks involved. Rupiny Sarventhiran, 32, said she created oPictures of children, although modestly dressed, may attract paedophiles to download images for grooming and exploitation, says child rights lawyer █ BYSIVANISVARRY MORHAN [email protected] social media accounts for her two daughters, aged six and nine months, after being inspired by other celebrity and influencer parents. “I manage my younger daughter’s account and allow my older child to use her account under my supervision. I share their daily outfits, milestones and special moments with the online community. “I never imagined their accounts would gain so much attention as ‘baby influencers’, especially from local and international baby brands that are keen to collaborate through paid promotions.” Rupiny said despite her daughters being dressed modestly in their photos and videos, she noticed an increase in the number of “saved posts” of them in beach attire, compared with their usual numbers. “What made it even more alarming was that most of these saved posts were by men who were strangers. It left me feeling uneasy and suspicious about who was viewing and saving our content,” she said, adding that keeping her daughters safe and well has always been her priority. “At first, I did not worry much about their social media accounts. But now, I realise the importance of being cautious. I have adjusted their privacy settings and restricted their audience to protect my daughters.” Kokila said while promoting children on social media, parents must consider the presence of paedophiles, who can also be individuals willing to pay for advertisements. “Paedophiles often lurk on social media. They take advantage of the innocence of a child by pretending to be friendly or promising fame. Then, they manipulate children into doing inappropriate things or sharing compromising material.” She said some paedophiles may have fantasies involving infants or young children and saving baby posts allows them to indulge in these fetishes. She also said they collect images of children for gratification, either as part of a broader collection of illicit material or as a means of reliving past interactions or experiences. “In some cases, they save baby posts as part of their grooming process. They establish trust with parents or caregivers by showing interest in their children. This can be a precursor to exploit the child in future.” Kokila urged parents to focus on the safety and well-being of their children, adding that they need to be aware of cyberbullying, online predators and inappropriate content. She also said parents who allow their children to use social media should adjust the privacy settings and use parental controls to limit what minors can see or do online. She added that by understanding these risks and establishing clear boundaries and guidelines, parents can help mitigate potential risks and keep their children safe. Four in MMEA helicopter crash safely rescued KUALA LUMPUR: A helicopter belonging to the Malaysian Maritime Enforcement Agency (MMEA) crashed in the waters off Pulau Angsa in Klang yesterday. All four people on board were safely rescued. Civil Aviation Authority of Malaysia (CAAM) CEO Datuk Kapt Norazman Mahmud said the AW139 helicopter, with registration number M72-01, was on a training flight before it crashed. “The helicopter departed from the Sultan Abdul Aziz Shah Airport in Subang at 9.10am. “The last contact that the pilot made with air traffic control officers was reported at 9.20am, but no emergency calls were received.” He said the Kuala Lumpur Aeronautical Rescue Coordination Centre at the Kuala Lumpur Air Traffic Control Centre was activated to identify the location of the helicopter after a report was received. He also said all on board were rescued by a helicopter and taken to the Sultan Abdul Aziz Shah Airport at 10.58am, adding that an investigation will be conducted by the MMEA Investigation Board. MMEA said the incident happened at 9.55am when the helicopter was making an emergency landing during a rescue training exercise. MMEA director-general Maritime Admiral Datuk Hamid Mohd Amin said CAAM and the Maritime Rescue Coordination Centre in Putrajaya activated a search and rescue (SAR) operation at 10.15am after receiving an emergency call from anglers. He identified the four as Lt Comm (M) Tengku Mohd Nizam Tengku Zakaria and Lt Comm (M) Mohamad Azrol Saidi, who are both pilots. The other two were Warrant Officer I (M) John Ibno and Petty Officer (M) Muhamad Nurhayyat Hashim, who is a rescue swimmer. “Maritime assets dispatched to the location The crew of the helicopter received aid from anglers while waiting for rescuers. – BERNAMAPIC were Guard Boat 25 from Selangor, RH 16 and PSC 39 boats from Port Klang Marine Police and an MMEA Dauphine aircraft from the Subang Maritime Air Station (SMAS). “The AW139 crew members were rescued by a Dauphine aircraft and flown to SMAS,” Hamid said. He added that anglers on a boat provided initial assistance to the crew, adding that 10 members of the Special Action and Rescue Team and KM Bagan Datuk (patrol vessel) were also deployed to the location for security control. He said the SAR operation was called off at 11.15am and MMEA is investigating the cause of the crash. – Bernama
WEDNESDAY | MAR 6, 2024 6 Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ LARUT: Against the backdrop of the calm and serene village atmosphere in Selama, Perak, there is a morning market known as Pekan Jumaat Sungai Bayor, which has been the focus of over 300 traders from three states for the past 20 years. The market opens every Friday from 7am to noon and offers a variety of goods stretching over 2km along Jalan Kampung Sungai Bedarah, drawing visitors from Perak, Kedah and Penang. Selama District Hawkers Association chairman Mohamad Ezaiyuhan Awang, 38, said the market usually attracts around 2,000 visitors, and the number doubles during school holidays. “Some even travel all the way from Johor and Selangor to experience it.” He said in the early 60s to 70s, the location of the market was along the banks of Sungai Bedarah, but it was later moved to Pekan Sungai Bayor due to the increasing number of traders. “The location was then moved again to where it is now in early 2004 by the Selama District Council for safety reasons, since the location in Sungai Bayor town is the main route for residents. “I am one of the lucky ones among the few traders who have experienced the atmosphere doing business in Pekan Sungai Bayor and here,” he said, adding that among the items offered were a variety of food and beverages, agricultural produce, fish, fruits, second-hand goods and toys. “More than half of the total number of traders here are selling foodstuff. “All kinds of things can be found here, including items that are difficult to obtain such as tualang honey and certain species of freshwater fish.” Mohamad Ezaiyuhan said the association also organised several competitions as side activities to enhance the vibrancy of the market. The competitions featured various themes, including classic fashion, food and stall decoration in collaboration with the district council, Gang Dangor Sungai Bayor, WK Picture and the Selama population, Bernama reported. “We are doing all this to ensure the survival of the market. It would attract more visitors and generate additional income opportunities for traders,” he added. Trader Mohd Nazril Salleh, 32, said for the oRural traders offer village delicacies, fresh produce and used items amid fun-themed activities Quaint morning market draws crowdsfrom three states past six years, he has been travelling from his home in Kulim, Kedah, a round trip distance of over 50km, to earn a living by selling kacang rebus (boiled chickpeas and groundnuts). He said his efforts have been worthwhile as the sales generated could reach RM300 to RM450 a day. “Although the trading time is short, at around five hours and on only one day a week, the income is very satisfying to me. “It’s more fun doing business during the school holidays. Sometimes, I closed my stall by 9am because the kacang rebus is sold out,” he said, adding that the district council only charges RM4 for each trading site. Visitor Normala Sidek, 45, from Ipoh, suggested the authorities increase the number of signs to make it easier for visitors to find the location of the market. “I would like to suggest the local authorities put up signboards in addition to displaying information about the market for the convenience of outsiders. I am confident the uniqueness of this market could become another attraction for tourists,” she said. “My family and I have visited the market three times. Apart from the serene and calm atmosphere here, we can also buy fresh vegetables or village delicacies at reasonable prices.” A trader at the market dressed in traditional attire ‘entertaining’ customers at his stall. – BERNAMAPIC
WEDNESDAY | MAR 6, 2024 7 Crew hurt, vessels damaged in Spratlys incident oWater cannons used on Philippine supply boat MANILA: The Philippines said yesterday that China Coast Guard vessels caused two collisions with Philippine vessels and water cannoned a boat, leaving four crew injured during a resupply mission in the South China Sea. The incidents happened near Second Thomas Shoal in the Spratly Islands where the countries have contesting maritime claims. A Philippine government task force said in a statement that “China Coast Guard and Chinese Maritime Militia vessels harassed, blocked, deployed water cannons, and executed dangerous manoeuvres in another attempt to illegally impede or obstruct a routine resupply and rotation mission”. The China Coast Guard said it “took control measures” against Philippine ships’ “illegal intrusion” in waters around Ren’ai Reef in China’s Nansha Islands, using the Chinese names for the shoal and Spratly Islands. The BRP Sindangan, along with a sister ship, had been deployed to support the military chartered Unaizah May 4 and Unaizah May 1 boats carrying replacement soldiers and supplies to Second Thomas Shoal, where Filipino troops are stationed on a grounded Philippine navy vessel. Four crew on board the Unaizah May 4 were injured when two China Coast Guard ships fired water cannons at it, shattering the windshield, the National Task Force for the West Philippine Sea said in a statement. It said a China Coast Guard vessel also caused a “minor collision” with the Unaizah May 4, which turned back without delivering its cargo. Earlier in the morning, a China Coast Guard vessel caused a separate “minor collision” with one of the Philippine ships that was escorting the supply boats. China Coast Guard spokesman Gan Yu accused the Philippine Coast Guard ship of “intentially” ramming the Chinese boat, causing a “minor scrape”. The Unaizah May 1 was able to unload its provisions, which the troops on the BRP Sierra Madre depend on for their survival. China claims almost the entire South China Sea, brushing aside competing claims from a host of Southeast Asian nations and an international ruling that has declared its stance baseless. The incident comes a day after Philippine Foreign Minister Enrique Manalo called on China to “stop harassing us” as he defended Manila’s strategy of publicising Chinese manoeuvres in the South China Sea. Philippine President Ferdinand Marcos was also forthright when he appeared on Monday at an event hosted by a think tank. “We shall never surrender even a square inch of our territory and our maritime jurisdiction,” he said on the sidelines of the Asean summit in Melbourne. – AFP Vietnam tycoon on trial in US$12.5b fraud case HO CHI MINH CITY: A top Vietnamese property tycoon went on trial yesterday along with dozens of others, accused of embezzling US$12.5 billion (RM59 billion) in the country’s biggest ever fraud case. Truong My Lan, chair of major developer Van Thinh Phat, is said to have swindled the cash from Saigon Commercial Bank (SCB) over the course of a decade, leaving unsuspecting investors out of pocket. Eighty-five others are also on trial, including former central bankers, former government officials and ex-SCB executives – among them two Chinese nationals still at large. They face charges including bribery, abuse of power, appropriation and violations of banking law. State media showed pictures of dozens of vans carrying the defendants to the court. Police have identified around 42,000 victims of the scandal, which has shocked the country and led hundreds to protest in Hanoi and Ho Chi Minh City – a rarity in a one-party communist state that tolerates no dissent. Lan, who is married to a wealthy Hong Kong businessman, is accused of setting up fake loan applications to withdraw money from SCB, in which she owned a 90% stake. Police say those caught up in the scam are all SCB bondholders who cannot withdraw their money and have not received interest or principal payments since Lan’s arrest in October 2022. The value of Lan’s alleged asset misappropriation, which occurred between 2012 and 2022, was equivalent to around 3% of Vietnam’s GDP in 2022. Authorities have said that the US$5.2 million allegedly given by Lan and some SCB bankers to state officials to conceal SCB’s violations and poor financial situation was the biggest ever bribery sum recorded in Vietnam. According to Ho Chi Minh City’s Law newspaper, 10 prosecutors and nearly 200 lawyers will attend the trial. Documents weighing up to six tonnes will be handled in the almost two-month long trial, the longest ever in Vietnam. The arrests came as part of a corruption crackdown that has swept up many officials and members of the country’s business elite. Others accused of fraud include Truong Quy Thanh, the head of soft drink giant Tan Hiep Phat Group. He is to be prosecuted along with his two daughters for allegedly misappropriating US$31.5 million. Do Anh Dung, chairman of developer Tan Hoang Minh Group, will also face trial for illegally acquiring US$355 million in a bond sale to more than 6,500 investors. – AFP Prabowo promises smooth transition B R I E F SS’PORE TO HOST AUSTRALIAN NUCLEAR SUBMARINES MELBOURNE: Singapore Prime Minister Lee Hsien Loong said the city-state would gladly host Australia’s fleet of nuclearpowered submarines once they were up and running – an offer likely to raise Beijing’s hackles. The United States and the United Kingdom have pledged to help Australia acquire a fleet of nuclear-powered subs as part of joint plans to counter China’s influence in the region. While some Asean members have expressed reluctance to back the so-called AUKUS defence pact, former British colony Singapore has been full throated in its support. “I’ve said before, and I repeated to the prime minister on this visit, that when the new Australian submarines are ready, we welcome them to visit Changi naval base,” Lee said. – AFP HSIEN LOONG DEFENDS TAYLOR SWIFT DEAL MELBOURNE: Singapore struck a deal ensuring Taylor Swift played the city-state but nowhere else in Southeast Asia, its prime minister said yesterday while defending the secretive arrangement. Pop icon Swift is halfway through a run of six sold-out shows in Singapore, the only city in Southeast Asia to feature in her blockbuster Eras world tour. The star’s schedule has sparked controversy in the music-mad region, with Singapore accused of throwing cash at Swift to stop her from appearing in other locations. “Our agencies negotiated an arrangement with her to come to Singapore and perform, and to make Singapore her only stop in Southeast Asia,” Prime Minister Lee Hsien Loong said. “A deal was reached. And so it has turned out to be a very successful arrangement. I don’t see that as being unfriendly.” – AFP TECHNICAL SNAG FORCES NZ PM TO FLY COMMERCIAL SYDNEY: New Zealand Prime Minister Christopher Luxon yesterday was forced to fly on a commercial flight to attend an summit in Melbourne after a technical snag hit his military aircraft. Luxon’s flight was scheduled to take off from the capital Wellington, but pre-flight checks found a technical fault with the aircraft’s nose landing gear system, a spokesperson for the New Zealand Defence Force said in an emailed response. A spokesperson for Luxon’s office confirmed the prime minister took a commercial flight to Melbourne. Luxon met the Sultan of Brunei, Hassanal Bolkiah. – Reuters JAKARTA: Indonesia’s presumed president Prabowo Subianto yesterday promised a “very smooth” transfer of power later this year and pledged to continue the policies of incumbent Joko Widodo and do what was necessary to make improvements in the country. Speaking at an investment forum, Prabowo, who unofficial vote counts show won the Feb 14 presidential election by a huge margin, said Indonesia had fundamental strengths that only needed good management, but said it was crucial to create more jobs and tackle poverty. He said he believed economic growth could reach 8% annually within the next four or five years and he was seeking to privatise state companies and increase tax ratios, by widening the tax base, not necessarily raising taxes. In a wide-ranging speech, Prabowo also said Indonesia should be proud of the election, for which the turnout was “not bad”, although he was not satisfied with his country’s democracy. “Let me attest, testify that democracy is really very, very tiring. Democracy is very, very messy, democracy is very, very costly,” he said. “There is a lot of room for improvement. But also, let us not have this inferiority complex of always feeling that we are inferior to everybody.” Prabowo looks to have easily won the election at his third attempt at the presidency. – Reuters Truong being escorted into court in Ho Chi Minh City yesterday. – AFPPIC
WEDNESDAY | MAR 6, 2024 8 READ OUR HERE /thesun Malaysian Paper Chinese legislators kick off annual gathering BEIJING: China’s parliament opened its annual meeting with subdued pageantry yesterday as sleet and cloudy skies left delegates shivering under umbrellas. Nearly 3,000 representatives from around the country – including rural Communist Party members and university professors – are converging on Beijing this week. A contingent of military delegates strode into the vast Great Hall of the People in dress uniforms, while representatives oSessions will clarify direction of national goals NEW FIND ... A section of a limestone statue of Ramses II unearthed by an Egyptian-US archaeological mission in El Ashmunein, south of the Egyptian city of Minya. – REUTERSPIC ‘Peaceful reunification’ reference dropped BEIJING: China adopted tougher language against Taiwan as it released budget figures, dropping the mention of “peaceful reunification” in a government work report delivered by Premier Li Qiang at the opening of the National People’s Congress (NPC) yesterday. China reiterated a call for “reunification” with Taiwan, but added emphasis that it wants to “be firm” in doing so and dropped the descriptor “peaceful” used previously. Although it is not the first time that China had omitted the word “peaceful”, the change in language is closely watched as a possible sign of more assertive stance towards Taiwan. Taiwan’s Defence Ministry and Mainland Affairs Council did not respond to requests for comment. Wen-Ti Sung, a political scientist and nonresident fellow at the Atlantic Council, said that the language on Taiwan has “moderately hardened”. “Beijing appears to be balancing between projecting increased toughness on Taiwan with stabilising relations with Taiwan’s international friends,” he said. After the Democratic Progressive Party’s Lai Ching-te won the presidential election in Taiwan, the Chinese Communist Party’s fourth-ranked leader, Wang Huning, said at a policy meeting that China would “resolutely combat” any efforts towards Taiwan independence this year. – Reuters Above-normal temperatures due to El Nino GENEVA: The warming El Nino weather phenomenon that peaked in December was one of the five strongest ever recorded, the United Nations said yesterday, predicting that it would produce above-normal temperatures till May. Though El Nino is weakening, its impact will continue over the coming months, the UN’s World Meteorological Organisation said. “Above normal temperatures are predicted over almost all land areas between March and May,” it said. El Nino, the large-scale warming of surface temperatures in the central and eastern equatorial Pacific Ocean, typically has the greatest impact on the global climate in the year after it develops, in this instance 2024. It is a naturally occurring weather pattern associated with increased heat worldwide, as well as drought in some parts of the world and heavy rains elsewhere. El Nino developed in June 2023 and was at its strongest between November and January. It hit a peak of around 2° Celsius above the 1991 to 2020 average sea surface temperature for the eastern and central tropical Pacific Ocean. That made it one of the five strongest El Nino events ever. El Nino events are associated with increased rainfall in parts of southern South America, the southern United States, the Horn of Africa and central Asia. It can also cause severe droughts over Australia, Indonesia, parts of southern Asia, Central America and northern South America. The weather phenomenon occurs on average every two to seven years, and episodes last nine to 12 months. Conditions oscillate between El Nino and its cooling opposite La Nina, with neutral conditions in between. – AFP B R I E F SSHEHBAZ TAKES OATH AS PRIME MINISTER ISLAMABAD: Pakistan’s Shehbaz Sharif took the oath on Monday to officially become prime minister for a second time, nearly four weeks after an uncertain national election caused delays in the formation of a coalition government. Shehbaz, 72, officially took office at a swearing-in ceremony at the presidential office here a day after parliament elected him prime minister. His first meeting after the ceremony was with his finance team. A statement from the prime minister’s office said that he directed them to begin talks with the International Monetary Fund on an extended funding facility, which expires in April. “We got a mandate to improve economy and that’s our top priority.” – Reuters MALDIVES INKS DEFENCE DEAL AS INDIA EXITS MALE: The Maldives has signed a “military assistance deal with China after ordering Indian troops deployed in the small but strategic archipelago to leave. Some 89 Indian military personnel in the country will be gone by May 10 after having been previously ordered out by President Mohamed Muizzu, who came to power last year on an antiIndian platform. The Maldivian Defence Ministry said they signed an “agreement on China’s provision of military assistance” with Beijing late Monday, saying the agreement was “gratis”, or without payment or charge. It said the deal was to foster “stronger bilateral ties”. India is suspicious of China’s growing presence in the Indian Ocean and its influence in the Maldives, as well as in neighbouring Sri Lanka. – AFP from ethnic minorities arrived in heavily embellished traditional garb. Sporting legend Yao Ming, president of the Chinese Basketball Association, towered over fellow attendees on the steps of the Great Hall, while others ducked under umbrellas and donned raincoats in the wet weather. The National People’s Congress kicked off its conference yesterday morning, part of China’s “Two Sessions” political showpiece, with an orchestral rendition of the national anthem and a work report read out by Premier Li Qiang. “As a farmer, I feel so proud, that a farmer can have such high-level support from the country,” delegate Fan Jiuping, who travelled to Beijing from the village of Qiaozhen in landlocked Shaanxi province. Chen Yeguang, an NPC delegate and cell biologist from Nanchang University in southern Jiangxi province, said he expected to return home from the meeting with instructions on “how to carry out and implement his work in the direction of national goals”. Large parts of the capital’s historic centre have been closed off for the Two Sessions, with authorities constructing a maze of paths, car parks and checkpoints around the Great Hall of the People. Attendees, many pulling up hoods and clutching scarves to keep dry, were made to alight from buses and walk along Tiananmen Square as guards and rain-soaked police dogs waited to inspect vehicles for explosives. While last year’s parliamentary assembly was marked by the drama of President Xi Jinping securing a historic third term, this year’s gathering was off to a relatively lowkey start. And a few figures who shared the limelight with Xi at 2023’s Two Sessions were notably absent – disgraced former foreign minister Qin Gang, and former premier Li Keqiang, who died just months after giving his last work report to legislators. Also absent were the face masks delegates donned throughout the three years of China’s strict public health policy, as well as last year after the regime of snap lockdowns and mass testing was abruptly scrapped. Only a handful of guards sported the masks, with organisers also scrapping quarantine requirements for attending the event. – AFP
WEDNESDAY | MAR 6, 2024 9 GAZA STRIP: International mediators and Hamas delegates were in Cairo yesterday for talks to try to secure a pause in the war in Gaza ahead of Ramadan. Envoys from the Palestinian group and the United States were expected to meet Qatari and Egyptian mediators for a third day of negotiations over a six-week truce, the exchange of dozens of remaining hostages for hundreds of Palestinian prisoners and the flow of aid to Gaza. Israeli delegates have so far stayed away from the negotiations, despite growing diplomatic pressure for a truce before Ramadan. Israeli media reported that the country’s mediators boycotted the talks after Hamas failed to provide a list of living hostages. Senior Hamas leader Bassem Naim said that details on the prisoners “were not mentioned in any documents or proposals circulated during the negotiation process”. Israel has said it believes 130 of the 250 captives taken by Hamas in the October attack that triggered the war remain in Gaza, but that 31 have been killed. As conditions in the besieged Palestinian territory deteriorate and the spectre of famine looms, Israel is facing increasingly sharp rebuke from its top ally the United States. Vice-President Kamala Harris expressed “deep concern about the humanitarian conditions in Gaza” during talks in Washington on Monday with Israeli war cabinet member Benny Gantz. The same day, the World Health Organisation said an aid mission to two hospitals in northern Gaza had found horrifying scenes of children dying of starvation, amid dire shortages of food, fuel and medicines. In Gaza’s main southern city Khan Younis, which has seen heavy fighting, people described finding decomposing bodies lying in streets lined with destroyed homes and shops. “We want to eat and live. Take a look at our homes. How am I to blame, a single, unarmed person without any income in this impoverished country?” said Nader Abu Shanab, pointing to the rubble with blackened hands. The Oct 7 attack resulted in about 1,160 deaths, most of them civilians, according to a tally based on official Israeli figures. Israel’s retaliatory offensive has killed 30,534 people, mostly women and children, according to the Health Ministry in the Hamasruled territory. – AFP Western ambassadors accused of meddling MOSCOW: Russia’s Foreign Ministry yesterday accused Western ambassadors here of meddling in Russia’s internal affairs and said their behaviour raised questions about the point of such envoys. The war in Ukraine has triggered the deepest crisis in Russia’s relations with the West since the 1962 Cuban Missile Crisis and President Vladimir Putin has warned the West that it risks provoking a nuclear war if Western troops are sent to fight in Ukraine. Russia was dismayed by what Foreign Minister Sergei Lavrov said on Monday was a refusal by European Union ambassadors to meet him for a conversation ahead of Russia’s March 15-17 presidential election. There was no immediate reaction to Lavrov’s statement from the Western ambassadors. Asked by Russian state television anchor Vladimir Solovyov if the EU ambassadors understood their function, Foreign Ministry spokeswoman Maria Zakharova said their refusal to meet Lavrov raised questions about their role. “The question indeed arises among everyone: what are they doing, and why, how do they interpret their conduct on the territory of our country if they do not perform their most important function?” Zakharova said. Solovyov noted that EU ambassadors attended the March 1 funeral of opposition politician Alexei Navalny, whom he cast as their agent. Navalny, whose death at an Arctic prison colony was announced on Feb 16, always denied he was a Western agent. Zakharova said such behaviour showed Western ambassadors in Moscow were meddling in Russia’s affairs and putting on “performances” rather than doing their diplomatic work. The banner headline on Solovyov’s television show read: “Should the EU ambassadors be sent out?” – Reuters Diplomatic push for ceasefire intensifies oEnvoys negotiating six-week truce in Cairo Israel, UN trade allegations of terrorism, torture NEW YORK: Israel recalled its ambassador to the UN on Monday as tensions erupted over the handling of allegations of sexual assault during the Oct 7 attacks. Israel has accused the United Nations of taking too long to respond to the claims, a charge the UN has robustly defended itself against as it published a report detailing evidence of rapes and assaults. At the heart of the increasingly bitter row is the embattled UN agency for Palestinian refugees (UNRWA), which has already seen funding pulled by many Western countries after Israel accused about a dozen of its employees of involvement in the Oct 7 attack. On Monday, UNRWA said members of its own staff had been tortured by Israel, even as the Israeli military said the agency had employed more than 450 “terrorists”. The military also released what it said were recordings of “a terrorist working as an Arabic teacher at an UNRWA school ... describing his entry into Israeli territory and stating that he is holding female hostages” following the Oct 7 attack. A UN report issued on Monday said that there were “reasonable grounds to believe” rapes were committed in the attack, and that hostages taken to Gaza have also been raped. Israel’s ambassador to the UN Gilad Erdan, who was recalled for consultations over the escalating row, said “it took the United Nations five months to finally recognise the sexual crimes committed on Oct 7.” UN Secretary-General Antonio Guterres’ spokesman denied that he had done “anything to keep the report quiet” after visceral criticism from Israel’s Foreign Minister Israel Katz. UNRWA employs around 30,000 people in the occupied Palestinian territories, Lebanon, Jordan and Syria – with about 13,000 staff in the Gaza Strip. It is at the centre of efforts to provide humanitarian relief in Gaza, where aid groups warn of looming famine after nearly five months of Israeli bombardment. UNRWA said Israeli authorities had “detained several of its staff from the Gaza Strip” who later described abuses in custody. “Our staff have reported atrocious events while they were detained and during interrogations by the Israeli authorities. These reports included torture, severe illtreatment, abuse and sexual exploitation,” UNRWA said in a statement to AFP. Palestinians walk amid the rubble of houses destroyed by Israeli bombardment in Gaza City. – AFPPIX B R I E F SSEA DRONES DAMAGE BLACK SEA PATROL SHIP KYIV: Ukrainian sea drones damaged a Russian Black Sea Fleet patrol ship off occupied Crimea, a Ukrainian intelligence source said yesterday. “Hits and significant damage,” said the source. Ukrainska Pravda, a Ukrainian media outlet, reported that a Russian Project 22160 patrol ship Sergei Kotov had been hit overnight. Andriy Yermak, President Volodymyr Zelenskiy’s chief of staff, said on Telegram that “The Russian Black Sea Fleet is a symbol of occupation. It cannot be in the Ukrainian Crimea.” Train traffic was temporarily stopped on the bridge linking the Crimean peninsula to the Russian mainland, according to the Telegram channel of a Russia-installed official in Crimea. Highway traffic was also suspended for several hours before reopening. The Russian Defence Ministry did not immediately comment. – Reuters MIGRANT WORKER KILLED IN ATTACK ON SETTLEMENT NEW DELHI: One Indian migrant worker was killed and two injured in an attack on an Israeli settlement on Monday. An Israeli embassy statement in India yesterday blamed the attack on Lebanese resistance force Hezbollah. The workers were “cultivating an orchard” in the Margaliot settlement. The dead and injured Indian nationals hailed from the southern state of Kerala, according to a Press Trust of India report. In response to Israel’s killing of Palestinians in Gaza since October and attacks in the West Bank as well Israeli bombings inside Lebanon, Hezbollah has been hitting Israeli sites in the border region. With Palestinians barred from working in the Jewish state, Israelis are trying to recruit tens of thousands of workers from India. – Bernama
10 WEDNESDAY | MAR 6, 2024 Education remains an important pillar of Malaysian society; it equips students with the skills needed to become productive and useful members of society. We invite you to showcase the best of education and the difference your institution has brought to the education landscape. Education matters so join us in 2024! Contact us now for special deals on digital, video and print advertising. Malaysian Paper 03-7784 6688 [email protected] Accelerate efforts to save Malayan tigers THE glaring headlines “Malayan tiger, Malaysia’s national animal, declared extinct” may soon become a reality. In the forests of Peninsular Malaysia, the dire situation of these majestic creatures persists with alarming urgency. Despite repeated warnings, the grim reality remains unchanged – fewer than 150 of these magnificent animals roam in the wild. This is not just a statistic, it is a heartfelt plea for immediate action, urging efforts to protect the future of this iconic species from the relentless threats of poaching and habitat destruction. Tigers are facing dual threats as their habitats shrink and their food sources are threatened by diseases. The diminishing availability of their preferred food sources, namely sambar deers, and the impact of diseases such as African swine fever on alternative prey like wild boars, are driving tigers nearer to human settlements. Not surprisingly, human-tiger conflict incidents in Peninsular Malaysia have escalated in recent years. Never before have there been several tiger sightings and encounters within a short space of time. These conflicts have led to tragic outcomes for humans and tigers. Restoring prey populations depleted by poaching, habitat destruction and disease is an urgent priority. Therefore, prey augmentation efforts should be relentless. However, prey augmentation presents its set of challenges and complexities. Breeding programmes for sambar deers require careful planning due to their lengthy breeding cycles while wild boar breeding for prey augmentation is relatively uncharted territory. While sambar deers mate and reproduce year-round, with seasonal calving peaks leading to the birth of single calves, wild boars breed continuously and can produce litters of up to six piglets. The protracted breeding cycles of sambar deers, coupled with the unfamiliarity surrounding wild boar breeding, underscore the complexities involved in restoring ecological balance. Moreover, the emergence of diseases such as African swine fever and canine distemper virus further complicate matters, necessitating concerted research and development to devise effective mitigation strategies. The government’s commitment to conservation is commendable, marked by significant victories in recent years with the establishment of the National Tiger Task Force, the Wildlife Crime Bureau under the police and the amendment to the Wildlife Conservation Act 2010. The community ranger programme managed by the Wildlife and National Parks Department in Peninsular Malaysia, alongside collaborative enforcement operations such as Khazanah Integrated Operation, have yielded positive results in curbing poaching activities. In Belum-Temengor, the number of active snares discovered in 2021 plummeted by 96% compared with the baseline year of 2017. Moreover, for two consecutive years, 2022 and 2023, no snares have been detected. These achievements are attributed to the collaborative efforts of various parties working in BelumTemengor, with the invaluable support from our donors and corporate partners, especially Maybank. Prey augmentation, one of the many strategies aimed at preventing the extinction of Malayan tigers, addresses the declining numbers of food sources such as sambar deer and wild boar. We urge all stakeholders, including governmental bodies and corporations, to intensify efforts in supporting habitat protection, improving connectivity, preventing poaching and implementing prey augmentation. These combined measures are crucial for achieving a stable tiger population that can be supported by the available habitat and prey resources without causing ecological harm. The article is contributed by the World Wide Fund for Nature - Malaysia. Comments: [email protected] “The diminishing availability of preferred food sources, namely sambar deers, and the impact of diseases such as African swine fever on alternative prey like wild boars, are driving tigers nearer to human settlements. Tigers are facing dual threats as their habitats shrink and their food sources are imperiled by diseases. – BERNAMAPIC COMMENT
11 WEDNESDAY | MAR 6, 2024 Ensure comfort and security for retirees ACCORDING to the latest demographic report for the fourth quarter of 2023 by the Statistics Department, Malaysia is experiencing a demographic shift with a steady rise in the number of the older population. While Malaysia’s total population is projected to reach 41.5 million by 2040, the proportion of the population aged 60 and older is projected to be at 17.6%, representing more than 7.3 million people. Given this growing older population, Malaysia needs to create sound and s u s t a i n a b l e socioeconomic, health and social care systems to cater for this change. It is only logical that after working most of their lives, the elderly would look forward to retiring in comfort by perhaps travelling or by spending time with family and friends. However, not all are fortunate to have the same luxury due to personal or financial circumstances. Recently, the news of a 70-yearold man having to work as a food delivery rider to support his family went viral. Despite having reached retirement age and the harsh working conditions as a rider, the elderly man had no choice but to work because of his family’s needs and their daily expenses. This is not one rare case of an elderly Malaysian having to work as there are many others who are struggling to make ends meet. When one talks about life after retirement, the main hope is to be financially worry-free – not having to care about money to sustain one’s needs until one dies. The expectation is that there is an adequate system in place to support a conducive and comfortable or at least decent living for retirees. This should cover basic needs such as sustainable income/revenue, health services, retirement homes and insurance coverage, among others. Currently, civil servants can either opt for the government pension scheme or contribute to the Employees Provident Fund (EPF), which is largely subscribed by private sector workers. Nevertheless, when we discuss pensions, it should not be solely about choosing which system is better – between pension and EPF. That approach would be overly simplistic or “lazy” because there are many elements affecting retirees that require c o n s i d e r a t i o n including financial security, healthcare, public transport and more. Therefore, this issue should be viewed holistically and thoroughly examined from a broader perspective. According to a recent statement from the Finance Ministry, pension disbursements for over 900,000 retired civil servants are expected to cost the government over RM31 billion this year. With the increasing number of retirees and longer life expectancy, this financial “commitment” is expected to skyrocket to RM120 billion by 2040. Therefore, the suggested plan to eliminate pensions for new government employees is deemed a necessary move to alleviate the government’s financial burden. Irrespective of one’s employment sector, the shared aspiration is to retire peacefully. Yet, at present, numerous uncertainties loom regarding life after retirement, especially concerning financial security and access to healthcare. To gain a better understanding of retirees’ needs and challenges, the following questions need to be addressed: 0 How much do I need monthly to meet my needs? 0 Do I have enough savings to sustain me for the next 15 years? 0 Is it feasible for me to work to generate income for my daily expenses? 0 Are there other options besides pension and EPF? 0 Who will care for me if I become ill? 0 Given the high cost of healthcare, should I consider obtaining insurance? 0 I am not married and live alone. What support options are available to me? 0 Considering I do not own a property, where can I reside? 0 What factors should I consider when selecting a retirement home suited to my needs? The Malaysia Ageing and Retirement Survey Wave Two (2021- 2022) conducted by the Social Wellbeing Research Centre at Universiti Malaya in partnership with the Asian Development Bank revealed significant findings. Over 80% of elderly individuals in Malaysia were not prepared to reside in an assisted living facility, although more than 60% reported at least one doctor-diagnosed disease. Additionally, a majority of respondents expressed a need for social and financial assistance, with many advocating for governmentmandated parental care from their children. As such, in addressing the issue of retirement, it is vital to recognise that financial security is just one aspect among many to contemplate. Therefore, it is encouraging to note that the Economy Ministry, in collaboration with the World Bank, is currently developing a national ageing blueprint in preparation for the country’s transition to an “ageing nation” by 2030. The blueprint will help the government address the impact of an ageing population across multiple areas, encompassing economic growth, productivity, workforce management, social protection and elderly healthcare. As we formulate our policies, it would be prudent to examine the approaches adopted by other nations regarding retirement planning. The Mercer CFA Institute Global Pension Index 2023 is an excellent reference for policymakers, offering insights into various pension systems worldwide. This report, analysing and ranking 47 global pension systems, positions Malaysia at 32nd place. Notably, the Netherlands, Iceland and Denmark are highlighted as having the world’s top-performing pension systems. Additionally, the report identifies areas for improvement in Malaysia, including household savings/debt management, pension age adjustments and enhanced support for impoverished individuals. The transition of Malaysia into an ageing nation demands serious attention. Although the challenges are evident, it is reassuring to witness the government’s earnest efforts in formulating policies and action plans to address this issue. Let us unite in crafting a serene retirement plan for our elderly population. The writer is the programme head at the Malaysian Public Service Department. Comments: [email protected] While Malaysia’s total population is estimated to reach 41.5 million by 2040, the proportion of the population aged 60 and older is projected to be at 17.6%, representing more than 7.3 million people. – THESUN PIC Government action urgently needed to support elderly MALAYSIA is rapidly approaching the status of an ageing nation, with 15.3% of its population expected to reach 60 and above by 2030. As such, the government needs to embark on plans and strategies to ensure the well-being of our senior citizens. Many of our elderly, whether from the public or private sector, have contributed significantly to the nation’s development over the years. It is our duty to provide them with the support they need to lead active, healthy and fulfilling lives in their golden years. Some of us, like myself, have ageing parents who require care, yet the process of obtaining foreign domestic helpers has become costly, excessively burdensome and timeconsuming. The myriad criteria and regulations imposed by registered agencies, including stringent processes within government departments such as the Immigration Department, only exacerbate the challenges families face in seeking assistance. Certain regulations are irrelevant, adding unnecessary hurdles for those seeking to care for their elderly loved ones. Government agencies should embody the Madani principles of compassion and assistance, especially in matters such as elderly care. Furthermore, the financial burden of securing a foreign domestic helper, with costs nearing RM20,000 per person depending on their country of origin, is substantial. The Madani government should consider alleviating this financial strain by reducing processing fees for care givers, thereby easing the financial burden on families striving to care for their elderly parents. Streamlining the process of obtaining care givers for the elderly is essential. Moreover, families do not only have to contend with the arduous process of securing foreign domestic helpers but also have to face exorbitant fees charged by maid agencies. This compels both spouses to work to meet these obligations, often leading to additional financial burdens due to loans and other expenses. The current state of affairs raises questions about the realisation of the Madani vision of a compassionate and inclusive society. How can we sustain an ageing population when the system is not equipped to accommodate those caring for the elderly? Furthermore, the shortage of affordable and trustworthy elderly care facilities, coupled with reports of abuse in some centres, exacerbate the dilemma faced by families contemplating sending their elderly to old folks homes. While it is commendable that the government is creating a blueprint to prepare for Malaysia’s transition into an ageing nation by 2030, prioritising the care of the elderly should be its foremost concern. The government must address these shortcomings and ensure that Immigration Departments nationwide align their systems with its principles to better serve the populace, especially caregivers. It needs to simplify the process of obtaining foreign domestic helpers, reduce associated costs and ensure the availability of safe and affordable elderly care facilities. Only then can we truly uphold the values of compassion, respect and inclusivity espoused by the Madani framework. Sharmini Seremban LETTERS [email protected] COMMENT by Ahmad Hisham Idris “Given the growing older population, Malaysia needs to create sound and sustainable socioeconomic, health and social care systems to cater for this change.
ESG ESG WEDNESDAY | MAR 6, 2024 12 Effective sustainability strategiesfor organisations ASIA’S GDP is poised to shrink by more than 26% by 2048 if no action on climate change is taken, according to an Ecosperity report. Many countries today are acutely aware of the price of inaction and the urgent need to tackle climate change and environmental degradation. Malaysia is no exception as it takes on a whole-of-nation approach to sustainability reflected in the Shared Prosperity Vision 2030, Renewable Energy Policy and Action Plan and 12th Malaysia Plan – all of which are aligned with the 17 United Nations Sustainable Development Goals (UNSDG). Today, more Malaysian businesses and organisations are rising to the occasion by stepping up their Environmental, Social, and Governance (ESG) efforts. Significant developments have taken place recently, including Bank Negara Malaysia’s guidance on climate change and principle-based taxonomy to elevate climate considerations in financial institutions. Several Malaysian organisations – including KWSP, Petronas, Maybank, and Malaysia Airlines – have also set net zero targets by 2050. Many others have made pledges to reduce carbon emissions and reduce their environment footprint. While progress is underway, the question remains – is it fast enough or is it substantial enough to steer our world away from the climate tipping points? A 2022 Malaysia Business Sustainability Pulse Report finds that less than 20% of Malaysia’s private sector have set commitments to sustainability initiatives. Close to half (46%) of Malaysian companies have not allocated a budget for their sustainability programmes. To truly drive significant, meaningful progress, Malaysian organisations first need to recognise oMalaysian companies need to recognise obstacles to move from pledges to progress GDS inks renewable energy deal with Cenergi SHAH ALAM: GDS, a leading developer and operator of highperformance data centers in Asia, has reinforced its commitment to sustainability by establishing a 21- year renewable energy Virtual Power Purchase Agreement (VPPA) with Malaysia’s solar power producer and diversified renewable energy developer, Cenergi SEA Bhd (Cenergi). The agreement positions GDS among the first cohort of green power offtakers in Malaysia under the Corporate Green Power Programme (CGPP) which is administered by Malaysia’s Energy Commission. The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate offtakers in Peninsula Malaysia. GDS has successfully subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Centre Campus in Johor. The partnership with Cenergi empowers GDS to claim Renewable Energy Credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving netzero carbon emissions by 2030. Cenergi, a subsidiary of UEM Group Bhd, is a premier sustainable energy solutions company specialising in reducing carbon footprint through investment in Renewable Energy and Energy Efficiency projects. Cenergi is currently one of Malaysia’s diversified renewable energy developers and the country’s largest biogas player making it a wellsuited collaborator for GDS’s sustainability initiatives. The renewable energy procured through this agreement will be supplied from Cenergi’s 29.99MWac large-scale solar photovoltaic farm that will be located in the state of Kedah, and is expected to be operational by 4Q2025. Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes’ electricity use for one year. Combined with GDS’s existing green DC technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage. “Collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies our commitment to fostering sustainability within the industry,” GDS chairman and CEO William Huang said. “As a first mover in Johor with our Nusajaya Tech Park Data Centre Campus and various ongoing projects, this endeavour signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid. “This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector.” Cenergi Group CEO Hairol Azizi (From left) GDS Malaysia general manager Jimmy Yan, GDS technology SVP Verghese Jacob, Hairol and Cenergi chief business development officer Kwok Yew Hoe at the signing ceremony. Avaland reports FY23 net profit of RM66 million SUBANG JAYA: Emerging property developer Avaland Bhd (formerly known as MCT Bhd) completed its turnaround and reported its highest net profit in five years of RM66 million in the financial year ended Dec 31, 2023 (FY23) on revenue of RM608.2 million. For a comparison, the group reported net profit of RM0.5 million on revenue of RM224.9 million in FY22. The improved financial performance was mainly due to increased contributions on the back of advanced construction progress from the group’s ongoing projects, namely Aetas Damansara, Alira Subang Jaya, Casa Embun and Sanderling. Meanwhile, for the fourth quarter ended Dec 31, 2023 (Q4’23), revenue increased by more than threefold to RM261.6 million from RM76.5 million in the previous corresponding quarter. This resulted in the group reporting a net profit of RM37.5 million in Q4’23 from RM13.5 million in Q4’22. Avaland CEO Apollo Bello Tanco said he stellar financial performance reported in FY2023 is the culmination of years of strategic initiatives aimed at fortifying their operations, enhancing their financial robustness, and sharpening their focus on delivering quality homes. “Despite facing economic and market challenges in 2023 such as the higher overnight policy rate and weaker ringgit, we not only reported quarterly growth throughout the year but also achieved higher sales for the year. We achieved 7.6% higher sales to RM586.1 million in FY2023 from RM544.7 million in FY2022, mainly contributed by the strong demand from Casa Embun, Sanderling and Alira Subang Jaya due to their strong value proposition and strategic locations,” he added. He said they are also proud to be included as a constituent of the FTSE4Good Bursa Malaysia and FTSE4Good Bursa Malaysia Shariah Indexes with a three-star ESG Grading. The inclusion into these two indexes was a result of the group’s commitment towards providing sustainable developments. the obstacles in their sustainability journey and formulate considered steps to overcome them. This will be crucial in enabling the companies to move beyond sustainability pledges and make tangible progress. Going into uncharted territory It is understandable that business leaders can be easily overwhelmed by ambitious sustainability targets. As organisations face immense pressure to perform amidst rising economic concerns, they are often tempted to postpone or forego new business initiatives. Unfortunately, sustainability programmes tend to be among the first to be sacrificed. While sustainability and decarbonisation are top-of-mind for investors, many new projects lack sufficient incentives to meet the threshold return in the short-term and deliver in-year returns. This might cause many of such projects to be shelved or cancelled as companies become more prudent in their spending. Moreover, sustainability is an uncharted territory for many leaders, which can give rise to issues they’ve never faced before. For instance, the transition to cleaner energy sources will require serious planning to ensure the phasing out of old energy sources – such as coal or oil – does not disrupt operations. Consequently, many sustainability efforts from the business community often sojourn at the initial stages. While it may be tempting to withdraw or withhold funding for these projects, the longterm sustainability of the business would depend on these initiatives to be incubated and scaled. Change in perspective needed A solid first step that Malaysian business leaders can take in their sustainability journey is the change in perspective. Stakeholders would need to take a view that sustainability does not necessarily detract from business goals. Many need to start seeing sustainability efforts as an investment in their future and not as a mere obligation or public relations exercise. There are many ways sustainable practices can benefit company goals, including: catalysing operational efficiency, satisfying stakeholders’ expectations, evolution of new business models, and promoting greater compliance with regulations. In addition to shifting mindsets and perspectives, there are also actionable strategies that organisations should consider to integrate sustainability into their company’s DNA and drive better sustainability outcomes: Firstly, the sustainability agenda needs to start from the board and their shareholders, the CEO and executives, and with input from the bottom-up. It can start from as simple as setting the tone and strategic importance organisationwide, which later translates into actions that embed sustainability into business decisions made. Secondly, build a clear sustainability roadmap. Each organisation has unique challenges, opportunities and business objectives. A clear roadmap should take these factors into account. By understanding where your organisation stands in terms of sustainability, an adviser or consultant can provide customised solutions that are practical and achievable. This approach can also help organisations prioritise their efforts and set realistic targets, leading to more effective implementation and tangible results. Thirdly, embrace digital strategies. Putting investments in the right digital tools and technologies that support achieving your green mission will accelerate ESG efforts. If your organisation is unsure where to start, moving to cloud can be the first foundational step from a technology standpoint. Finally, prioritise a consistent and long-term journey. Sustainability is a process, and like all innovative transformations, has no definite endpoint. Rather than fixating on elaborate future targets, it is more efficient to take small and practical steps. For example, just by being aware of how much carbon your software is producing can enable you to make better decisions that will in turn lead to measurable goals. Race to secure greener future As key pillars in the Malaysian economy and society, the business community holds immense potential to spearhead sustainability efforts. There is more that can be done by collaborating and engaging with stakeholders. In particular, taking action to build muscle in the usage of data and digital to rapidly prioritise and iterate sustainability initiatives. Ultimately, the race for the future belongs to those who move quickly and take decisive action towards a more sustainable world. By turning pledges into tangible progress, Malaysian businesses can become a force for change and lead the way towards a greener and more prosperous future for the nation. This article is contributed by Bhavya Kapoor, managing director of Avanade Southeast Asia. Tajudin said this collaboration underlines their dedication to sustainability and fits perfectly with their goal of promoting renewable energy projects. “By supplying GDS with green electricity from our upcoming solar farm, we’re not just helping them reach their net-zero emissions target but also contributing to Malaysia’s larger plan for a greener energy mix,” he said.
WEDNESDAY | MAR 6, 2024 Editorial T: 03-7784 6688 F: 03-7785 2625 E: [email protected] Advertising T: 03-7784 8888 E: [email protected] SCAN ME PETALING JAYA: The Negeri Sembilan government and Main Market-listed company Tanco Holdings Bhd signed a joint venture agreement on Monday for the development of Malaysia’s first smart artificial intelligence (AI) container port at Dickson Bay in Port Dickson. The signing ceremony held in Seremban was witnessed by Transport Minister Anthony Loke Siew Fook and Negeri Sembilan Menteri Besar Datuk Seri Utama Aminuddin Harun. Midports Holdings Sdn Bhd (MHSB), a 79%-owned subsidiary of Tanco and Menteri Besar Negeri Sembilan (Pemerbadanan) (MBINS) have entered into a joint venture to develop the smart AI container port that includes an additional 33.66 hectares (83.19 acres) of seabed land off Dickson Bay. Both entities will set up a joint venture company (JVC) which will serve as the development backbone of the project, driving the construction and future operation of the smart AI container port. MHSB will hold 80% share of the JVC and MBINS the remaining 20%. Aminuddin said, “This smart AI container port is not just a development, it’s a leap towards revolutionising our state’s and Malaysia’s economic landscape. We are setting the foundation for future generations, ensuring Negeri Sembilan plays a crucial role in both the state’s and nation’s economic growth and global maritime logistics.” He added that the smart AI container port marks a transformative development for Negeri Sembilan, promising job creation, enhanced land values and potentially leading to developing new industrial zones, as well as existing industrial zones, in close proximity to the smart AI container port, attracting both local and foreign investments. He said this growth in infrastructure will generate significant revenue for Negeri Sembilan and the nation, reinforcing Malaysia’s position in international trade and establishing the region as a key economic hub. “The establishment of this port is a clear signal to the world that we are ready to enable the future of trade and technology. This venture is expected to attract more Foreign Direct Investment that will positively contribute to GDP and foster the growth of high-tech technology factories, further solidifying Malaysia’s position as a key player in the global economy,” said Aminuddin. The smart AI container port will be supported by a 480-acre landbank owned by Tanco, eliminating additional land acquisition costs. The site is strategically located midway of the Straits of Malacca and features natural deepwater access with more than 21 metres in depth that is 1.8km from the shoreline, and is capable of accommodating the largest container ships globally. This strategic advantage is critical, as the Straits of Malacca is one of the busiest straits in the world, and positions Negeri Sembilan to capitalise on this bustling maritime route. It is designed to leverage cutting-edge technologies that will enable automated and efficient container handling, predictive maintenance, and enhanced security measures, setting new standards in operational efficiency and environmental sustainability. Tanco Holdings Group managing director Datuk Seri Andrew Tan Juan Suan said this port in Port Dickson is a testament to their commitment to innovation and sustainability. “The integration of advanced AI and smart technologies will enhance our logistics capabilities and ecosystem and position Malaysia as a leader in automated and sustainable port operations,” he added. The smart AI container port also offers logistical advantages by significantly reducing transport costs for gateway containers for businesses currently dependent on distant ports, and enhancing speed and efficiencies for transshipment containers. This strategic proximity is also expected to decrease carbon emissions, demonstrating Tanco’s contribution to sustainable practices. “We have started our groundwork and invited foreign industrialists to the smart AI container port location. These industrialists have expressed positive feedback and interest for the potential development of new industrial park(s) in close proximity to the smart AI container port in order to establish a more conducive trade and logistic ecosystem to accelerate the state’s industrialisation plans,” said Tan. He added that they plan for MHSB to seek permission from the relevant Malaysian authorities to undertake an infrastructure listing on the local exchange in due course. Negeri Sembilan, Tanco to build AI-driven container port oJoint-venture project in Port Dickson expected to transform country’s maritime landscape Help oil palm smallholders with replanting, major players told MPOC: RM705m potential sales from Mena buyers KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has secured a total potential sales of RM705 million from a business matching session during trade and networking visit for Middle East and Northern African (Mena) buyers recently. MPOC CEO Belvinder Sron said the buyers from oils and fats companies across three Mena countries – Turkiye, Egypt and Algeria – sought various palm products, including refined bleached deodorised palm olein in both consumer packs and bulk containers, cooking oil, shortening and specialty fats. Describing the initiative as a success, she said MPOC has been approached by industry members to organise similar programmes for markets in the Asia-Pacific and Sub-Saharan African regions. “The success of this programme is attributed to the cooperation and strong support of Malaysian palm oil stakeholders. “I encourage more industry members to participate in the upcoming ‘Trade and Networking’ editions as it is crucial that we intensify efforts to promote sustainable Malaysian palm oil to the world and explore untapped markets,“ she said in a statement yesterday. Meanwhile, a participant from Egypt said the acceptance level of palm oil products is very good since Egyptians preferred vegetable-based products. Vice-chairman and manager director of Cairo Oil & Soap Co, Amr Heiba said even though they preferred soybean and sunflower oil, Egyptians are open to using palm oil-based products due to competitive prices in the market. The three-day programme provided insights into the Malaysian palm oil sector such as presentations on the nutrition and health attributes of Malaysian palm oil and updates from the Palm Oil Refiners Association of Malaysia. – Bernama KUALA LUMPUR: The government has called on major palm oil players to support close to 500,000 smallholders with their replanting efforts, which will lead to higher domestic production and benefit stakeholders. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani noted that to date, the palm oil industry occupies over 5.7 million hectares (ha) of land. Out of the total, he said, about 1.5 million hectares is occupied by around 447,000 smallholders and a significant number of trees on their plantations are due for replanting. However the budget allocated for such efforts is not able to help all the smallholders. Under Budget 2024, Johari said, the government has set aside RM100 million as replanting incentives, which is only able to assist a “footprint size” estimated at 5,900ha. On average, an individual smallholder manages about 4ha of land, he noted. Johari urged big players to consider consolidating multiple smallholders’ land into clusters of 8,000ha to 10,000ha to support their replanting efforts. “Indeed, many smallholders are facing difficulties in increasing their yield. I envision a feasible business model that can consolidate the 214,680 independent smallholders (822,073ha) into clusters of around 8,000 to 10,000 hectares,” he told reporters at the 35th Annual Palm and Lauric Oils Price Outlook Conference and Exhibition 2024, yesterday. Johari said if 30% of the 1.5 million hectares was replanted, it would be able to increase about 250,000ha and increase the production which will benefit the whole esosystem. “These clusters would then be managed just like a medium or large estate by a dedicated team. I know this is not going to be easy, but let’s dream big. If we are able to consolidate even 30% of independent smallholders, we would have an additional 250,000ha of land to be managed efficiently,” he added. Johari pointed out that if the big players do not step in to help, the old trees with lower yield could result in lower production for the local industry. “The replanting rate between 2014 and 2023 remained low at 1.8% annually. According to industry best practices, 4% to 5% of oil palm trees should be replanted every year. Otherwise, by 2027, over 560,000ha of oil palm trees will be over 25 years old. This would lead to lower production in the future. “A more pragmatic way to ensure that our smallholders will replant on time to ensure consistent maximum yields is to leverage on the technical expertise of the large industry players and Malaysian Palm Oil Board, covering seeds, clones, fertiliser, as well as pest and disease management. Surely, achieving a larger scale is crucial to reduce costs per unit and increase productivity. “If all smallholders can adopt the mentioned good management practices of large scale plantations, FFB (fresh fruit bunch) yield can easily increase by two tonnes per hectare. “This will in turn increase our crude palm oil production by an additional 600,000 tonnes a year, which is valued at around RM2.4 billion at the current market price, without any additional land use change. I know that this is easier said than done, but we need to work on it,” he said. Bursa Malaysia Bhd director Mohd Saleem Kader Bakas, Johari and Bursa Malaysia chairman Tan Sri Abdul Wahid Omar (second, third and fourth from left respectively) at the event. █ BYGLORIA HARRY BEATTY [email protected]
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | MAR 6, 2024 14 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper PropertyGuru Group posts improved Q4 results oProptech firm projects full year 2024 revenue of between S$165 million and S$180 million PETALING JAYA: PropertyGuru Group Limited, Southeast Asia’s leading property technology (proptech) company, posted revenue of S$42 million (RM147.8 million) in the fourth quarter ended Dec 31, 2023 which was a year-on-year increase of 4%. Net profit was S$1 million in the fourth quarter and adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) was S$9 million. This compares to a net loss of S$5 million and adjusted Ebitda of S$0.5 million in the fourth quarter of 2022. CEO and managing director Hari V. Krishnan said “Our 2023 results demonstrate our ability to navigate challenging macroeconomic conditions and our commitment to profitability. We delivered double-digit revenue growth and a double-digit adjusted Ebitda margin for the full year. This is a clear testament to our ability to create value for our customers and help property-seekers achieve their home-ownership goals.” Despite less than favourable market conditions in Vietnam and Malaysia, they were able to achieve these results by being laser-focused on optimising costs, adopting internal process automation, improving code quality and productivity, he added. On the technology front, Hari said they continue to invest in the transformational use of generative AI and automation to place them at the forefront of property technology and set them up for consistent improvement in productivity for years to come. “We continue to make proactive changes to build a sustainable, future-proofed business. Following our principle to make focused investments in our identified priorities, we have undertaken a strategic step towards rearchitecting our organisation. This will ensure we have set our investment levels commensurate to the opportunity presented, with the right efficiencies to deliver scalable profitable growth for years to come.” Going forward, Hari said that while they anticipate ongoing macro challenges, their blueprint for success remains clear – innovate and advance through talent and technology. Chief financial officer Joe Dische said they delivered 11% revenue growth and a 13% adjusted Ebitda margin despite significant macro challenges in two core markets, Vietnam and Malaysia. “As we enter 2024 and get closer to positive inflection points in Vietnam and Malaysia, we are encouraged by how successful our internal cost-control, efficiency, and automation efforts were in 2023. We spent the year balancing product innovation and investment with careful cost management and reaped the benefit of these activities throughout the year, particularly in the fourth quarter when our adjusted Ebitda margin jumped to 22% from 1% in the prior year quarter,” he added. He said net income in the fourth quarter of 2023 was S$1 million, a distinct improvement over a loss of S$5 million in the fourth quarter of 2022, and the second sequential quarter in a row of positive net income. SC: 68 SRI funds worth RM7.7b as at Dec 31 2023 KUALA LUMPUR: Securities Commission Malaysia (SC) announced that there were 68 Sustainable and Responsible Investment (SRI) funds with a total size of RM7.7 billion in Malaysia as at Dec 31, 2023. SC chairman Datuk Seri Dr Awang Adek Hussin said companies and investors are becoming more comfortable with sustainability as an investment approach and they are seeing demand for it. “Globally, trillions of dollars have flowed into funds that tout their environmental, social and governance (ESG) credits. “With the amounts rising, there is also growing concern about greenwashing, greenhushing and green bleaching,“ he said at the Institutional Investors Council MalaysiaSecurities Industry Development Corporation (IIC-SIDC) Corporate Governance Conference 2024 here yesterday. In his opening address at the conference, Awang Adek said the International Organisation of Securities Commissions highlighted that greenwashing remains a fundamental market conduct concern that poses risks to both investor protection and market integrity. He said greenwashing could undermine the fundamental trust in sustainable finance. “If investors lose trust, the financing required for a just transition can be dissipated,” he said. Awang Adek also emphasised the importance of good governance and that governance failure can have a wide-reaching impact beyond financial losses. He said the industry expects institutional investors to play a greater role in driving responsible and sustainable value creation in companies. He noted that in 2023, close to 70% of public limited companies reported that the performance evaluations of the board and senior management included an assessment of how well they were managing the company’s sustainability risks and opportunities. Awang Adek said the total assets under the control of government-linked investment companies in Malaysia are estimated at RM1.87 trillion, making GLIC among the main pillars of the country’s socioeconomic development. – Bernama SMEs urged to work with Mimos to harness latest technologies KUALA LUMPUR: Small and medium enterprises are encouraged to collaborate closely with Mimos in leveraging its expertise in research and development to harness the latest technologies, said Science, Technology and Innovation Minister Chang Lih Kang. He said the partnership not only enables SMEs to enhance their capabilities but also accelerates Malaysia’s journey towards becoming a high-tech nation. “By embracing technological advancements, SMEs can elevate their position in the economic chain, contributing more significantly to our nation’s prosperity,” he said in his keynote address at the Malaysia Semiconductor Industry Association (MSIA) SME Conference 2024 here yesterday. Chang said many multinational corporations in semiconductor operations are transitioning towards integrated manufacturing centres, amalgamating manufacturing with research and development (R&D), product design, marketing and distribution. However, he said local enterprises, particularly SMEs, lag behind larger corporations in technological advancement and for that, efforts from various parties are very crucial to modernise SMEs, bridging the gap with larger entities to propel the industry forward. “SMEs form the backbone of our economy, comprising a substantial portion of businesses across various sectors. “They are agile, adaptable and possess the potential to innovate and disrupt industries. Electrical and Electronics (E&E) SMEs have a strong potential to contribute significantly to the country’s exports and employment in the manufacturing sector,” he said. Hence, Chang said, Mimos plays a role as an R&D centre to drive new capabilities in the upstream sector of the country’s semiconductor industry while continuing to advance capabilities in the downstream sector, in line with the E&E Roadmap: Technology Development 2021- 2030. Companies that are keen to explore applied research opportunities to boost corporate productivity can partner with Mimos in several key areas such as information security, artificial intelligence, advanced computing and photonics, he said. – Bernama Solarvest to install solar power systems at over 300 Petronas stations PETALING JAYA: Solarvest Energy Sdn Bhd, a subsidiary of clean energy expert Solarvest Holdings Bhd, has been appointed by Gentari Renewables Sdn Bhd, a subsidiary of Gentari Sdn Bhd, to install solar power systems at more than 300 Petroliam Nasional Bhd (Petronas) stations across Malaysia. Aimed to commence in April, this project will see the installation of more than 5.4 MWp of solar capacity across the Petronas stations. The solar power systems are expected to be operational by 2027. Once energised, it is estimated that they will offset around 5,035 tonnes of carbon dioxide emissions per year. Solarvest executive director and group CEO Solarvest Davis Chong Chun Shiong said businesses in Southeast Asia are actively seeking solutions to navigate the energy transition. “The surge in demand is fuelling our tender book and order book rapidly, reflecting in our significant revenue growth. Our ambition grows beyond Malaysia, we aim to drive the clean energy transition in the neighbouring countries by tapping on Gentari’s global network.” Chang (second from right) receiving a souvenir from Malaysia Semiconductor Industry Association presidennt Datuk Seri Wong Siew Hai after delivering his keynote address at the conference. – BERNAMAPIC Hari: Company continues to make proactive changes Dische: Significant macro challenges in two core markets Crest Builder’s order book hits record high of RM1.8 billion PETALING JAYA: Crest Builder Holdings Bhd’s wholly owned subsidiary, Crest Builder Sdn Bhd, has accepted a letter of award from Sunway Velocity Three Sdn Bhd for a contract value of RM448.5 million for the construction of Sunway Velocity 3 (Plot A) in Kuala Lumpur. The construction will consist of 1,604 units of serviced apartments in two 60-storey blocks, which also comprise a level of basement car park, eight levels of elevated car parks, two levels of mezzanine and recreation facilities. The construction works will take about 43 months to complete from its scheduled site possession date of March 15, 2024. With this latest contract, the outstanding order book now stands at about RM1.8 billion which is the group’s highest ever. The order book will provide Crest Builder with earnings visibility for the next four years. Crest Builder group managing director Eric Yong Shang Ming said that with their first contract for the year, he is confident they will achieve their RM500 million order book replenishment target.
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Muruku Buntong entrepreneur’s Deepavali snack, made from a still a national favourite 60-year-old recipe, is constantly in high demand. Chicken price float benefits consumers A week after subsidies ended, market prices are competitive and lower than subsidised prices, says expert. Full report —on page 3 Full report —on page 6 Full report —on page 4 Citing protection of country’s interests in terms of diplomatic, economic relations and security as reasons for joining meeting, Anwar says he remains steadfast in defending justice and rights of Palestinians. I will show up at Apec Story on page 2 Full story -on page 2 SCAN TO SUBSCRIBE InvestKL secures record RM8.7b in FDI for 2023 KUALA LUMPUR: InvestKL attracted a record-setting RM8.7 billion in foreign direct investments (FDI) in 2023, representing an increase of over 300% from RM2.79 billion in 2022. Twelve leading global corporations from the Americas, Europe and Asia regions spearheaded the investments. From the Americas, technology and consulting services led the charge, showcasing a strong interest in Malaysia’s digital economy. European investments spanned healthcare technologies, financial services and infrastructure, highlighting the region’s focus on innovation and sustainable development. Asian contributions were notably varied, with investments in automotive, environmental services, healthcare oTwelve leading global corporations from the Americas, Europe and Asia lead investment initiatives MDEC boosts ties with Philippines for Asean digital economy growth PETALING JAYA: Malaysia Digital Economy Corporation (MDEC) has convened DEX Connex programme in the Philippines for 2024 in collaboration with the Malaysia External Trade Development Corporation (Matrade) Philippines, the Embassy of Malaysia, Manila, DBP Data Center Inc., and Malaysia Chamber of Commerce and Industries (MCCI) Philippines. The programme is designed to support the growth of Malaysian tech companies in the Philippines and foster collaborative relationships between high-tech firms in both countries. It serves as a platform for participants to engage, expand their reach, and showcase Malaysian technology companies, driving opportunities for business growth and advancing the digital economy in Asean. A contingent of 35 high-tech Malaysian companies are engaged in the programme. MDEC is foreseeing RM150 million in digital export prospects facilitated by their collaboration with 50 potential partners and CIOs in the Philippines. Meanwhile, MDEC and the Department of Trade and Industry Philippines have initiated an exchange of tokens at the programme to signify their commitment to signing a memorandum of understanding in joining forces to foster digital innovation and economic growth in both Malaysia and the Philippines. Adrenalin eSystems enters Malaysian market, eyes SE Asia KUALA LUMPUR: Adrenalin eSystems, a pioneering force in HR Tech for over two decades, unveiled their cutting-edge People Experience Platform at the Malaysia HR Tech Conference and Expo held on March 5–6 at the Sime Darby Convention Centre. This launch marked a significant milestone in their journey towards enhancing employee engagement and productivity across Malaysia and the broader Southeast Asian region. “We are thrilled to introduce our innovative People Experience Platform to the Malaysian market, empowering organisations to elevate their workforce experiences and drive sustainable growth. Malaysia is an important market for us, and we have concrete plans in the pipeline to expand our presence in the region soon. We will be scaling our talent pool by 30-50 people within the next 2 to 3 years, solidifying our commitment to driving impactful change in the HR landscape in Malaysia and Southeast Asia,” said Srinivasa Bharathy, CEO & managing director Adrenalin eSystems. devices as well as travel and tourism. The investments generated 8,329 high-skilled jobs, a substantial rise from the 2,805 positions created in 2022. With this, 2023 marked InvestKL’s most outstanding year, culminating in the agency having secured a total of RM29.79 billion in investments since its inception in 2011. To date, 66% of the investments or RM19.74 billion have materialised, leading to the creation of over 27,000 executive jobs. Currently, 74% of these positions are filled, providing Malaysians with an average monthly income exceeding RM14,000. In a statement, Minister of Investment, Trade and Industry (Miti) Tengku Datuk Seri Zafrul Tengku Abdul Aziz said, “Malaysia’s record-high FDI inflow for 2023 reflects investors’ renewed confidence in Malaysia’s growth prospects, underscored by the unity government’s strategic policy direction and Miti’s industrial reforms. Our focus on implementation has also seen an average investment project implementation rate of 85% in the last few years, as we continue to facilitate the investors’ journey.” CEO Datuk Muhammad Azmi Zulkifli said the unprecedented FDI into Greater KL showcases the city’s attractiveness across diverse sectors such as technology, healthcare, finance, and engineering, signifying a major achievement in their efforts to attract high-value activities. “The success demonstrates Greater KL’s maturing business ecosystem, capable of securing and supporting substantial, intricate investments. The impact is profound, catalysing growth, strengthening local ecosystems and creating highvalue employment,” he added.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | MAR 6, 2024 16 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper Tata Motors shares surge on plan to split into two listed firms NEW DELHI: Shares of Tata Motors , India’s most valuable carmaker, hit a record high yesterday, a day after the company said it will split into two listed firms, separating its commercial vehicle business from its passenger vehicle arm. The stock, currently up 4.6%, is leading gains on the Nifty Auto index, which is up 1.4%. The stock rose as much 7.9% to hit its all-time high of 1,065.6 rupees. The carmaker is also the top gainer on the blue-chip Nifty 50 index, which is down 0.3% on the day. The demerger would allow Tata Motors’ passenger vehicle business to directly compete with industry leader Maruti Suzuki, said LKP Securities senior research analyst Ashwin Patil. With Hyundai potentially listing in India and Mahindra & Mahindra as the fourth top carmaker, investors would have a wider range of options to choose from as competition intensifies, Patil said. The passenger vehicle company will house Tata Motors’ lucrative Jaguar Land Rover business. Tata Motors was the best-performing stock on the 15-member Nifty Auto index last year, more than doubling after the company turned profitable on the back of strong luxury car sales. The “buy”-rated stock has scaled new peaks this year, outperforming its peers. It has risen 32% this year compared with a roughly 13% rise for the auto index. Analysts at Nomura do not expect the demerger to result in any immediate change in the way investors value Tata Motors. In the medium-term, the businesses should still be able to pursue their respective strategies with greater freedom, the analysts said. Shareholders will have an identical holding in both listed companies after the split, Tata Motors said on Monday. The demerger will be presented to the board in the coming months and will take 12 to 15 months after that for the necessary approvals. – Reuters Indonesia races to approve mining output quotas JAKARTA: Indonesia has approved the mining production quota requests from more than 120 mineral companies and aims to complete the approval process this month, a senior official at the Energy and Mineral Resources Ministry said yesterday. The approval process for the quotas, known locally as RKAB, has been delayed this year, raising concerns from nickel smelters who are facing depleting ore stock. Indonesia, a major producer of minerals such as nickel, tin, and copper, requires all mining companies to secure RKAB approvals periodically before they are allowed to conduct mining activities. “RKAB approvals for minerals are still on progress and the plan is to complete them by the end of March,” said Irwandy Arif, special staff to the energy and mineral resources minister. A total of 723 mineral mining companies applied for quota approvals, he said. He did not provide the tonnage for the approved RKAB, nor the breakdown of each of the minerals. However, Indonesia Mining Association executive director Djoko Widajatno estimated that 259 million wet metric tonnes of production quota for nickel have been approved. Last week, a director at the ministry said approvals have been issued for 145 million metric tonnes of nickel ore production this year, with approvals for more underway as authorities focused on processing requests for nickel and tin. – Reuters Temasek shortlists suitors for Pavilion Energy assets SINGAPORE: Temasek Holdings has shortlisted energy giants Shell and Saudi Aramco among a handful of companies to purchase most of the assets of liquefied natural gas (LNG) trading firm Pavilion Energy, sources with knowledge of the matter said. The sale process comes a decade after Singapore’s state investment firm set up Pavilion Energy to focus on LNG-related investments, and takes place as spot Asian LNG prices have fallen more than 40% since mid-August, potentially weighing on the deal’s valuation. Temasek is evaluating bids for the sale of Pavilion Energy’s assets, excluding its gas pipeline business, one of the sources said, adding a final bidding round was likely in coming weeks, before a winner is announced if the price is right. It was not immediately clear how many bids Temasek had received, or their financial terms. Bloomberg first reported on the sale process in August. Pavilion Energy directed enquiries to Temasek, which declined to comment. Shell declined to comment and Saudi Aramco did not respond to a request for comment. Barclays, which is advising Temasek on the sale, declined comment. Unlisted Pavilion Energy had profit after tax of US$438 million (RM2.07 billion) in the fiscal year ended March 2023, after a loss of US$666 million a year earlier, Temasek’s website showed, while revenue rose 38% to US$9.09 billion. Pavilion Energy’s shareholder equity value was US$3.63 billion by March last year, the website showed. Pavilion Energy invested about US$1.3 billion in three gas blocks in Tanzania in 2013, soon after it was set up. As one of two firms appointed by Singapore’s Energy Market Authority to import LNG, Pavilion Energy supplies one-third of the city state’s power and industrial gas with LNG and piped natural gas, its website said. It also supplies LNG to ships in Singapore, the world’s top bunkering port. In Europe, Pavilion Energy imports about a tenth of LNG volumes in Spain. It gained access to Europe with its 2019 purchase of Spanish energy company Iberdrola’s LNG assets, including long-term regasification capacity of about 2 million metric tonnes a year at Britain’s Grain LNG terminal, access to regasification capacity in Spain and on a pipeline between Spain and France. For Shell, the world’s top LNG trader by volume and the only other LNG importer in Singapore, the acquisition would expand its market share in the city state. For Aramco, the acquisition would help kickstart its LNG business, one of the sources said, as it races with Middle Eastern rivals QatarEnergy and Abu Dhabi National Oil Co to grab a share of the superchilled fuel market. – Reuters ‘Southeast Asia is where Australia’s future lies’ MELBOURNE: Australia unveiled plans to ramp up investment in Southeast Asia yesterday, setting aside US$1.3 billion (RM6.2 billion) to bolster trade in a region of rising economic might. Prime Minister Anthony Albanese announced the funding as he met leaders from the 10-nation Asean in Melbourne for a three-day summit. “The government I lead has made it clear. More than any other region, Southeast Asia is where Australia’s future lies,” Albanese told a business forum on the summit’s sidelines. Following a series of bruising disputes, Australia has increasingly looked to build Australian special envoy to Southeast Asia Nicholas Moore speaking during an Emerging Leaders session of the Asean-Australia Special Summit in Melbourne. – REUTERSPIC oCanberra sets up US$1.3b fund to grow trade with Asean economic ties outside of major trading partner China. Fuelled by years of swift and sustained population growth, the bloc is widely seen as an emerging economic powerhouse. With vast deposits of critical minerals and a booming appetite for electricity, Southeast Asia is also poised to play a major role in the global push for clean energy. Australia’s new funding package will provide export financing and loans geared largely toward infrastructure and renewable energy projects. Albanese said it was “the most significant upgrade of Australia’s economic engagement (with the bloc) for a generation”. While Asean leaders were eager to focus on trade and business, more sensitive questions about China’s growing sway in Southeast Asia were never far from mind. Singapore Prime Minister Lee Hsien Loong said the city-state would gladly host Australia’s fleet of nuclear-powered submarines once they were up and running – an offer likely to raise Beijing’s hackles. The United States and the United Kingdom have pledged to help Australia acquire a fleet of nuclear-powered subs as part of joint plans to counter China’s influence in the region. While some forum members have expressed reluctance to back the so-called Aukus defence pact, former British colony Singapore has been full throated in its support. “I’ve said before, and I repeated to the prime minister on this visit, that when the new Australian submarines are ready, we welcome them to visit Changi naval base,” Lee told reporters yesterday. Climate change also looms large on the summit’s agenda. Southeast Asia’s hunger for energy is largely fed by fossil fuels, while Australia remains one of the world’s biggest exporters of gas and polluting thermal coal. Both are increasingly eager to pivot toward renewable energy. – AFP
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | MAR 6, 2024 17 Japan seeing signs of positive wage momentum TOKYO: Japan is seeing early signs of achieving a positive cycle of rising inflation and wages, deputy chief Cabinet secretary Hideki Murai said yesterday, stressing the administration’s focus on broadening pay increases beyond big firms. The government is ramping up efforts to change Japan’s long held practice in which big firms use their huge bargaining power to pressure smaller suppliers into accepting price cuts. In guidance released in November, the government required companies to have executives take more ownership in the price-setting procedures, and clarified for the first time the chance of sanctioning firms that put undue pressure on suppliers to cut prices. The steps underscore the focus Prime Minister Fumio Kishida is putting on boosting profits of smaller firms, which they can then use to hike wages, Murai told Reuters in an interview. “We’ve made clear what companies ought and ought not to do” in price-setting negotiations, said Murai, who oversees the government’s initiative to ensure the guidance is met. “It’s important to embed new business practices so that costs are appropriately passed on throughout the supply chain.” The administration has made achievement of broad-based wage hikes a top priority as rising inflation pushes up households’ cost of living. Some big firms have announced plans of bumper pay hikes to retain talent and compensate employees for rising inflation. But there is uncertainty on whether small and mid-sized firms, which employ 70% of the total number of workers in Japan, will follow suit as rising raw material costs hurt their margins. “We need to revitalise the economy by shifting away from one that prioritises cost cuts, to one where a positive cycle of higher growth and wages kicks in,” Murai said. “We’re gradually seeing such (a) positive cycle fall into place.” The Bank of Japan is also focusing on whether wages rise sustainably, which it has set as a prerequisite for exiting ultra-loose monetary policy. – Reuters Pension withdrawals by residents leaving HK in Q4 down 1.6% HONG KONG: Residents leaving Hong Kong for good withdrew a total of HK$1.69 billion (RM1.02 billion) from their Mandatory Provident Fund (MPF) pension accounts in the fourth quarter of 2023, down 1.6% from a year earlier, government data showed. A total of 7,200 claims were made in the October-December quarter, compared with the 7,000 claims taking out HK$1.72 billion during the same period in 2022, data from the Mandatory Provident Fund Schemes Authority showed yesterday. The number of claims compared to 8,700 in the July-September quarter, 7,300 in the April-June quarter and 6,700 claims over January-March that saw withdrawals of HK$2.21 billion, HK$1.79 billion and HK$1.57 billion respectively. The MPF is a compulsory retirement scheme for Hong Kong residents, with employees and their employers required to make contributions. Curbs to control the spread of Covid-19 were among the reasons why people left Hong Kong. All pandemic curbs were lifted last year. Authorities have been trying to restore business confidence and attract investors and tourists after more than three years of severe pandemic measures. In the fourth quarter of 2023, the total number of claims – spanning all reasons including retirement – was 66,000, a decrease of 3.6% from the previous quarter’s 68,500. – Reuters China sets ambitious 5% growth target BEIJING: China set yesterday a growth target of around 5% for this year, an ambitious objective that the leaders of the world’s second-largest economy admitted would be a challenge to meet. Premier Li Qiang formally announced the growth goal, alongside the overall Budget and key government policies for 2024, as China’s annual National People’s Congress (NPC) kicked off yesterday. Addressing thousands of delegates, Li warned that “achieving this year’s targets will not be easy”. “The foundation for China’s sustained economic recovery and growth is not solid enough.” Last year’s NPC saw President Xi Jinping anointed for a historic third term, cementing his rule as the most powerful Chinese leader since Mao Zedong. A year on, thousands of delegates attending the gathering must grapple with a litany of economic and security challenges, including a protracted property sector crisis, soaring youth unemployment, and a global slowdown that has hammered demand for Chinese goods. The 5% goal is in line with last year’s oPremier admits achieving this year’s objective ‘will not be easy’ growth, but is a far cry from the double-digit expansion that for years drove the Chinese economy. “We do not consider the five percent growth target to be conservative, we actually think it is ambitious,” UBS chief China economist Wang Tao told AFP. “The property market has continued to fall and not yet reached the bottom, which exerts downward pressure on the economy,” she added, saying that would have a “negative impact on local government finance and spending, and household wealth and consumer spending”. Li in his speech warned there remained “lingering risks and hidden dangers” still present in the economy. Investors have called for much greater action from the state to shore up the flagging economy. But Beijing has for years been reluctant to confront the pressures on its economy head-on with a major bailout, fearful of putting too much strain on fragile state coffers, and analysts do not see any reason to think that will change soon. A separate Budget report indicated China’s military spending – second only to the United States’ – would rise by 7.2%. In the run-up to the NPC the legislature’s top body approved a broad and vaguely worded revision to China’s state secrets law – “a clear signal of security’s importance for this year’s governance agenda”, said Enodo Economics chief economist Diana Choyleva. In a bid to assuage investors’ fears, Beijing yesterday promised to open “new channels” for foreign trade, as well as to cut tariffs on advanced technology. But deepening the sense of China as an information black hole, Beijing on Monday said it would scrap a post-NPC press conference by the premier – in place since 1993 and a rare chance for international media to quiz one of the country’s top officials. Armed police and security personnel are ubiquitous on Beijing’s streets this week as thousands of delegates descend on the capital for the “Two Sessions” – a carefully choreographed week-long gathering of the NPC and Chinese People’s Political Consultative Conference (CPPCC). Many of its major decisions would have been made weeks in advance, in closed-door meetings of the Communist Party. Nevertheless, the topics that are up for discussion and the tone of the speeches allow for key insights into what is keeping China’s rulers up at night. Analysts agree that stuck between deep reforms to restart economic growth and efforts to strengthen the state’s power, China’s policymakers have little room for manoeuvre this week. The government may well “double down on the current direction of elevating national security measures on all fronts,” said Ho-fung Hung, a professor of political economy at Johns Hopkins University. “It will not help the economy, but could help the party-state weather the storm of economic crisis.” – AFP Uber Eats starts robot deliveries in Tokyo TOKYO: “Caution: robot!” chirps the green self-driving delivery vehicle as it trundles down the street to a restaurant in Tokyo to pick up a meal ordered on Uber Eats. Starting today, robot deliveries will be offered in a small area of the city by the US-based food app, which hopes to eventually roll out the service more widely in Japan. The country, facing growing labour shortages, changed traffic laws last year to allow delivery robots on public streets, and other companies including Panasonic are also trialling cute new machines to transport goods. Uber Eats’ boxy robots have square headlights for eyes and three wheels on each side to navigate kerbs as they calculate routes on their own, using sensors to avoid pedestrians and other obstacles. Moving at up to 5.4kph and with flashing lights around the lid, there is a human operator on standby in case of trouble. Like self-driving delivery services launched by the company in North America, the Tokyo robots will be limited in scope at first, said Uber Eats Japan market operations director Alvin Oo. App users must wait outside for the robot to arrive, but one day it could come to their door, he told AFP yesterday. “Going all the way to the office floor, to the exact apartment ... could be useful in somewhere like high-rise Tokyo,” said Oo. The service could also one day come to rural areas, where many residents are elderly and drivers are scarce, he added. Current drivers “do not need to worry”, Oo said, because “even in five, 10 years’ time, there will always be work for the human delivery partners on the platform”. Uber Eats and similar apps faced strikes last month, and rideshare giant Uber has long been Members of the media and passers-by walking next to the Uber Eats robot as it crosses the street during the demonstration in Tokyo yesterday. – AFPPIC criticised for dodging minimum wage and holiday pay rules by arguing its workers are not employees but independent contractors. The Uber Eats robots, developed with Mitsubishi Electric and American start-up Cartken, will deliver food from just a few restaurants in the busy Nihonbashi district at first. Users cannot choose robot delivery, and if it is selected for them they can accept or decline the offer. At a demonstration yesterday, the robot nearly collided with a pedestrian, but also attracted lots of attention. It’s “so cute, so eye-catching”, said passer-by Akemi Hayakawa. “I thought it might bump into people’s feet, but people give way to it. “Japan has an ageing, dwindling population, with a serious labour shortage. “So this is a very good idea for Japan too,” the 60-year-old said. – AFP
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | MAR 6, 2024 18 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Apple hit with €1.8b antitrust fine oRegulator says music streaming restrictions illegal under EU rules BRUSSELS: The EU on Monday hit Apple with a more than €1.8 billion fine (RM9 billion) for violating the bloc’s laws by preventing European users from accessing information about alternative, cheaper music streaming services. The iPhone maker immediately vowed to appeal the first ever antitrust fine slapped on Apple by Brussels, the culmination of a case triggered by a complaint by Swedish streaming giant Spotify. The European Commission found that “Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services” available outside the App Store. “This is illegal under EU antitrust rules,” the EU’s powerful competition regulator said. The €1.84 billion penalty is the third-largest antitrust fine ever imposed by the commission. The basic penalty for breaching EU rules was €40 million, but the commission’s competition enforcer Margrethe Vestager said such a fine would have been a “parking ticket” to a giant the size of Apple. For that reason, the commission added the huge sum of €1.8 billion as “deterrence”, she said. The total fine of €1.84 billion is equal to 0.5% of Apple’s worldwide turnover, Vestager said. “We have ordered Apple to remove the necessary provisions and to refrain from similar practices in the future,” she added. Spotify’s complaint in 2019 triggered a broad commission investigation into the iPhone maker in 2021, narrowed last year to focus on Apple’s actions to prevent apps from giving users information about rival music subscription options. Vestager told reporters that Apple’s actions had “impacted millions of European consumers”. “Some consumers may have paid more because they were unaware that they could pay less if they subscribed outside of the app,” she said. Apple slammed the commission’s decision and said it would appeal. “The decision was reached despite the commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” Apple said in a statement. “While we respect the European Commission, the facts simply don’t support this decision.” Spotify welcomed the fine, saying it “sends a powerful message – no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers”. Spotify CEO Daniel Ek said he was “sceptical” about how Apple would respond, suggesting that the tech giant was “just going to ignore” the fine. Despite the scale of the penalty, critics pointed out that it pales in comparison to Apple’s profits – which stood at US$33.92 billion for the last three months of 2023. “For Apple, this fine is still petty cash,” said German EU lawmaker Markus Ferber. By way of comparison, Brussels has hit Google with penalties of around €8 billion in the past few years – although the US-based firm is challenging the fines in EU courts. Nonetheless, the EU expects the fine will ensure that Apple stops limiting access to rival streaming services – all the more since it will also be obliged to do so under a new law known as the Digital Markets Act that it must adhere to by March 7. – AFP Tesla shares skid after China sales fall SAN FRANCISCO: Shares in Tesla fell more than 7% on Monday after its sales declined last month in China, where it likely faced a slowdown during the Lunar New Year holidays. The fall in sales in its key market dimmed the outlook for Tesla’s global deliveries, at a time when the top EV maker is battling a decline in demand and rising competition, and is weighed down by a lack of entry-level vehicles and the age of its product line-up. Tesla sold 60,365 China-made vehicles in February, down 19% from a year earlier and the lowest volume since December 2022, according to data from the China Passenger Car Association. Tesla’s Shanghai factory makes Model Y and Model 3 electric cars for the local market, Europe and other countries, and accounted for over half of Tesla’s global deliveries last year. Tesla shares ended down 7.2% on the day at US$188.14, a slump of 24% since the start of the year. The Lunar New Year holidays fell in February, reducing car purchasing activities. Tesla has introduced a series of price cuts and incentives to fend off slowing demand and rising competition from China rivals such as BYD. “It’s been a perfect storm of headwinds for Tesla in China. This was a negative data point that adds fuel to the fire around the stock,” Wedbush analyst Dan Ives said. Last week, Tesla unveiled new incentives including insurance subsidies to woo consumers in the world’s largest auto market. BYD on Monday launched a new version of its best-selling car at a price lower than the final price of its discontinued predecessor, escalating a price war with rivals. BYD also saw its sales fall 37% to 122,311 in February from a year earlier. In the United States, Tesla this month offered 5,000 free Supercharging miles to customers who trade in their older vehicle to get a new Tesla vehicle by March 31. In February, Tesla temporarily cut prices of some of its Model Y cars in the US. Analyst Troy Teslike revised down his forecast for Tesla global deliveries for the first quarter of this year, saying weaker-than-expected China sales despite a price cut suggested “a demand problem.” – Reuters Bayer rules out break-up ‘for now’ after huge loss BERLIN: German chemicals giant Bayer vowed yesterday to “urgently” address key challenges after plunging deep into the red in 2023, weighed down by woes related to its glyphosate-based weedkillers. But CEO Bill Anderson, hired last year to help steer the troubled group in a new direction, ruled out any imminent break-up of the firm – despite mounting pressure from activist investors. Bayer swung to a €2.9 billion (RM15 billion) loss in 2023 after booking a net profit of €4.15 billion a year earlier, it said in a statement. Sales fell by 6% to €47.6 billion, partly because of “significantly” lower prices for glyphosate-based herbicides in the group’s crop science division. Earnings were also dragged down by heavy impairment losses in the same division. Sales of prescription medicines in the pharmaceuticals division were flat, while the consumer health unit saw an uptick in part thanks to higher demand for dermatology products. Bayer, maker of Aspirin, has to strengthen its pharmaceuticals pipeline, Anderson said, referring to the need to launch new products to compensate for the expiration of patents on several blockbuster drugs in the coming years. The group also needs to address massive litigation issues linked to the Roundup weedkiller, he said, a problem Bayer inherited in the 2018 takeover of US firm Monsanto. Bayer has faced a wave of lawsuits in the US over claims Roundup, which contains the active ingredient glyphosate, causes cancer. Bayer denies the claim but has spent billions of euros on legal costs in recent years. The group’s high debt levels and a hierarchical bureaucracy that “blocks progress” were also key issues that need tackling, Anderson said. – AFP A staff member looking at Tesla’s Model 3 sedan displayed next to Model X SUV at the China International Fair for Trade in Services in Beijing. – REUTERSPIC Nintendo wins battle against piracy software company WASHINGTON: A company that was sued by Nintendo for creating software that allowed the mass pirating of video games agreed on Monday to pay the Super Mario maker US$2.4 million (RM11.4 million) in damages and shutter the tool. The company behind Legend of Zelda and Donkey Kong last week sued Tropic Haze, registered in the US state of Rhode Island, which owns and runs Yuzu, a popular video game emulator. A video game emulator is a piece of software that can be downloaded onto a PC or smartphone to play video games intended for a specific console, such as the Switch, PlayStation or Xbox. Initially, emulators were developed to play games that were no longer published on the latest consoles, before vintage gaming became a market in its own right for Nintendo, Sony and Microsoft. According to a settlement filed on Monday with the US federal court in Rhode Island, the defendant agreed to no longer make Yuzu available to the public and hand over all its programming code to Nintendo. Nintendo would also take possession of the website where the Yuzu tool was made available to download. The defendant is “fully aware” that Yuzu is “facilitating piracy at a colossal scale”, the company said in the suit. The Japanese gaming juggernaut had accused the company of going out of its way to circumvent elaborate safeguards and encryption to make Nintendo games available to Yuzu’s users. Nintendo said Yuzu was an important platform for existing games but also for playing games that were illegally leaked before their release. Last year’s Legend of Zelda: Tears of the Kingdom was downloaded one million times before its release with pirate websites directing users to Yuzu to play the game, the suit alleged. – AFP
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | MAR 6, 2024 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [ Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shall not be liable or responsible for any consequences resulting from usage of the information. AT SEM’s Q4’23, management shared that its convenience store (CVS) SSSG grew +9% YoY in FY23 (Q4’23: +1.6% YoY) largely driven by added contribution from new stores (+130 stores YoY), higher in-store volume sales, and higher store footfall. That said, eased gross profit (GP) margins (FY23: -1.1 ppts YoY) were due to increased A&P, fresh food wastage rate and costs related to its new distribution centre. SEM targets to open 100 gross new stores along with 150 to 200 store refurbishments in FY24E. Its total store count as at end-Q4’23 was 2,566 (incl. 247 7-Cafes). The opening of 7-CAFÉ stores will be prioritised in FY24E to leverage on its increasing range of fresh food SKUs produced from its food commissary. Although fresh food sales account for <10% of group revenue at present, SEM’s eventual diversification away from a tobacco dependent product mix (32% of revenue) will see better earnings translation from higher fresh food GP margins of at least 35% (vs. tobacco GP margins of 8-9%) in the long run. Plans for SEM to move up the value chain are well underway and we believe group margin accretion will gradually flow through as the number of fresh food SKUs are ramped up. That said, subdued consumer spending could delay consumer reception of its new products as consumption habits turn cautious. Execution is also paramount to ensure cost overruns do not occur, particularly with high food wastages and labour costs. Maintain HOLD with a TP of RM2.00 SUPERCOMMET’S FY23 net profit declined 9.6% to RM29.7 million, in tandem with weaker revenue of 12.8% to RM138.1 million. We attribute the weaker results to lower revenue from the industrial and automotive segments. In addition, net profit was impacted by higher electricity tariffs, share-based compensation for ESOS (RM1.6 million) and RM1 million one-off expense related to main market transfer. More importantly, profit have been on uptrends since Q1’23 due to higher orders from the medical segment, driven by resurgent demand for endoscopy video cables. We believe the recovery would continue, leading to revenue and profit growth of 27.7% and 31.9% in FY24. Note that Q4’23 performance improved further by 8.1% QoQ to RM8 million as revenue grew 7.1% to RM34.8 million. We expect the medical segment to continue to grow in 2024 as the group is pursuing opportunities in expanding sales to existing customers, progressing towards commercial production of new products and shifting to producing whole device to enhance the group’s margins. Key customers such as Edward (38% of Q4’23 revenue) and Ambu (36% of Q4’23 revenue) are expected to increase their orders. For Edward, we expect sales to increase by 8.2% in FY24, driven by smart cables. As for Ambu, the sales recovery in Q4’23 to RM12.5 million revenue (orders back to 95-98% of pandemic levels) will likely persist in FY24 while Ambu is ramping up its Mexico Plant (North and South America market). Also, contribution from IHS would likely begin in 2H’24. The current issue with the flow controller has been resolved with promising results approved by supplier and FDA. Maintain Buy with a TP of RM1.46/share. RESULTS from the 4Q CY23 reporting season mostly exceeded our expectations (4 out of 5), with the exception of MAXIS (OP; TP: RM5.30) which disappointed (due to accelerated depreciation). Aside from AXIATA (OP; TP: RM3.10), all telcos reported core net profit growth in FY23, mainly driven by service revenue expansion and absence of Cukai Makmur. In particular, for TM’s case, its earnings received a major boost from recognition of tax credits. On the flip side, all telcos were weighed by cost pressures that resulted in compressed or flattish EBIT margin. This mainly emanated from accelerated depreciation (for the local players) and heightened opex. In the case of AXIATA, depreciation costs surged in line with Link Net’s aggressive expansion of home passes. FY23 service revenue growth (0.3-4.2%) for the domestic operators was mainly propelled by subscriber base expansion across the board. Fixed and mobile operators ended the year with an enlarged subscriber base in 4Q CY23, except for Celcom (4Q CY23: -1% YoY). The latter was attributed to a clean-up of its prepaid base in 4Q CY23 that led to the removal of non-revenue generating subscribers. Nevertheless, for the broader industry, total subscribers for the three major mobile operators expanded by a healthy 4% YoY to 32.9 million in 4Q CY23. This was mainly led by MAXIS’ subscriber net adds of 442k for prepaid and 361k for postpaid. In particular, the latter’s expansion was attributed to the introduction of postpaid plans with lower entry price points (starting from RM30 per month). We maintain our OVERWEIGHT recommendation on the sector. FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.7900 4.6560 4.6460 1 Australian Dollar 3.1370 3.0130 2.9970 1 Brunei Dollar 3.5660 3.4630 3.4550 1 Canadian Dollar 3.5270 3.4330 3.4210 1 Euro 5.2090 5.0420 5.0220 1 New Zealand Dollar 2.9330 2.8250 2.8090 1 Singapore Dollar 3.5660 3.4630 3.4550 1 Sterling Pound 6.0930 5.9010 5.8810 1 Swiss Franc 5.3990 5.2740 5.2590 100 UAE Dirham 132.0500 125.2300 125.0300 100 Bangladesh Taka 4.4500 4.1600 3.9600 100 Chinese Renminbi 67.0300 64.2200 N/A 100 Danish Krone 71.6400 65.9400 65.7400 100 Hongkong Dollar 61.9100 58.8400 58.6400 100 Indian Rupee 5.8800 5.5200 5.3200 100 Indonesian Rupiah 0.0315 0.0285 0.0235 100 Japanese Yen 3.1900 3.0900 3.0800 100 New Taiwan Dollar N/A N/A N/A 100 Norwegian Krone 46.5300 42.8100 42.6100 100 Pakistan Rupee 1.7700 1.6400 1.4400 100 Philippine Peso 8.6900 8.1900 7.9900 100 Qatar Riyal 132.9300 126.1900 125.9900 100 Saudi Riyal 129.2500 122.7000 122.5000 100 South Africa Rand 26.0900 23.5600 23.3600 100 Sri Lanka Rupee 1.6000 1.4700 1.2700 100 Swedish Krona 47.6700 43.4400 43.2400 100 Thai Baht 14.0000 12.4200 12.0200 Exchange Rates Source: Malayan Banking Bhd/Bernama Ringgit slips against dollar on mild profit-taking THE ringgit ended lower against the US dollar yesterday on mild profit-taking following recent gains and investor disappointment with China’s macroeconomic targets set during its National People’s Congress (NPC). At 6pm, the ringgit slipped to 4.7325/7380 against the greenback compared with Monday’s close of 4.7200/7250. China Premier Li Qiang said yesterday that China expects its gross domestic product (GDP) to record a 5% growth in 2024, lower than the 5.2% achieved in 2023 amid a sluggish global economic environment. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that investors appear to see China’s GDP target as being on the high side, especially when property developers are still grappling with the sector’s doldrums. He said some profit-taking may have occurred after the ringgit strengthened against the greenback since last week. Back home, the ringgit was traded lower against a basket of major currencies. The local currency fell against the British pound to 6.0027/0097 from Monday’s close of 5.9840/9904, weakened versus the euro to 5.1348/1407 from 5.1198/1252, and declined vis-a-vis the Japanese yen to 3.1466/1505 from 3.1410/1445 previously. The ringgit traded weaker against other Asean currencies. It was easier versus the Thai baht at 13.2119/2320 from 13.1766/1965 yesterday and slid against the Singapore dollar to 3.5209/5253 compared to 3.5137/5177. The ringgit also depreciated vis-a-vis the Indonesian rupiah to 300.0/300.5 from 299.7/300.2 and inched down against the Philippine peso at 8.45/8.47 from 8.43/8.44 previously.– Bernama Kenanga Research retains ‘overweight’ call on telcos KUALA LUMPUR: Kenanga Research has maintained its “overweight” recommendation on the telecommunications sector, although industry players still await the announcement of the official 5G dual network (DN) policy directive. “We maintain our ‘overweight’ recommendation on the sector as we are optimistic that earnings and dividends will remain intact post implementation of a 5G DN model,” it said in a note yesterday. Under the 5G DN policy, two entities will be established as part of Malaysia’s transition from the 5G Single Wholesale Network (SWN) model to DN, whereby entity A will take over the existing first 5G network owned by Digital Nasional Bhd (DNB), whilst B will develop the new second 5G network. Kenanga Research, a research arm of Kenanga Investment Bank Bhd, said the pending announcement is expected to shed light on the final equity stake for each telecommunications company in either entity A or B. Back in December 2023, major telecommunications players such as CelcomDigi Bhd, Maxin Bhd, Telekom Malaysia Bhd, YTL Power International Bhd, and U Mobile Sdn Bhd each entered into conditional share subscription agreements (SSA) with the Ministry of Finance and DNB. The SSAs are targeted for completion by April 2024, resulting in the telcos collectively owning a 70% stake in DNB. On the average revenue per unit (ARPU), Kenanga Research said although ARPUs remained weak currently, it believed that enterprise segment and high net worth retail customers would be able to enjoy 5G monetisation opportunities in the near term. It said regulatory requirements had inhibited telcos from imposing additional access charges for 5G services. – Bernama Telecommunication 4Q CY23 soars above potentials Supercomnet Technologies Bhd Buy. Target price: RM1.46 7-Eleven (M) Holdings Bhd Hold. Target price: RM2.00 Source: Maybank Investment Bank Source: TA Securities Source: Kenanga Research March 5, 2024: RM2.00 March 5, 2024: RM1.24 March 4, 2024: RM11.20
LYFE LYFE WEDNESDAY | MAR 6, 2024 22 @thesundaily FOLLOW ON TWITTER Malaysian Paper Beard mastery 101 MEN’s facial hair. It is a tricky proposition. Get it right and you can look like a well-groomed movie star brimming with machismo. Get it wrong and you end up looking like a homeless person. No man ever says, “I am going to grow a beard to make myself look bad.” Yet, choosing the wrong facial hair style for your face shape can lead to just that. Everyone possesses unique physical characteristics that a beard, moustache, stubble and hairstyle can either enhance or diminish. To ensure your facial hair style makes you look even more wicked, it is crucial to select one that complements features like your jawline, cheekbone structure and forehead. The starting point? Discovering which beard and facial hair styles will best suit your face shape. Type of facial shape Identifying the right beard style begins with recognising your face shape. We have narrowed it down to four essential face shapes – square, oval, rectangular and round. Each face shape has beard styles that can accentuate your natural looks. Whether you are seeking inspiration or tips on achieving these styles with your electric shavers, read on. Choosing the right beard style can The square face type has a welldefined outline and can appear flawless. – FB/@CONAIRMAN oCrafting your look to fit your face █ BYHAZIQUE ZAIRILL An oval face shape is a beard artisan’s dream. – HOUSEOF99 Embrace round faces with an anchor beard like Iron Man Tony Stark. – BEARDOHOLIC Rectangular faces require beards and moustaches to conceal their long features. – REDDIT For a good first impression on any occasion, it is crucial to choose the proper beard style for your face. – HOUSEOF99 be a challenge, especially if you’re new to experimenting. Start by objectively analysing your face shape. Knowing your face is key to understanding the beard that suits you best. Square faces If your jawline has those sharp lines, chances are you rock a square face shape, giving off that movie star vibe. Therefore, highlighting the chiselled jaw and cheekbones is the way to go. To enhance that rugged look without exaggerating, skip the square beard. Instead, opt for a beard that is shorter on the sides and fuller on the chin, like the goatee style; it is perfect for softening the angles. The rounded appearance of a goatee does wonders for a square face, especially when paired with a full moustache. Also, if you want to add a little extra flair, take it up a notch and remove the moustache from the circle beard. Hence, there is a reason it is known as the goatee. Oval faces If you are blessed with an oval face, you have hit the beard jackpot, with a variety of great options at your disposal. The oval shape generally complements almost all facial hair styles, making it less likely for your face to appear overly angular or squeezed. Since you have the freedom to experiment, why not try a bold beard style that others might find challenging? Picture lightning bolts down your cheeks, signalling the electric vibes coursing through your veins. A horseshoe moustache exudes a touch of homegrown luck. Alternatively, for a long beard, try out the Viking style. This adventurous look can grow down to meet the chest, and its even length throughout makes it a low-maintenance choice. Nevertheless, while you have the perfect canvas for experimentation, it is advisable to discover your ideal look early on. A classic full beard that you can adjust based on the season and your preference might suit you well or just let your beard grow freely and see where the wind takes you. Round faces For those who have round-shaped faces, a sleek beard is extremely helpful in balancing out facial fullness. You can opt for maintaining an angled beard to create a slimming effect or play around with a boxshaped beard that features angled lines along the cheekbones and is slightly longer on the chin. For a bolder look, you might consider embracing the Tony Stark or Captain Jack Sparrow vibe with an anchor beard. Achieving this style involves defining the shape of the chin and upper lip before completely trimming the rest of the face and do not forget to keep a separate moustache for an added touch of flair. Additionally, three other recommended facial hair looks for round faces are pointed beards, which add angularity to the cheekbones while maintaining fullness on the chin. Another option is the Van Dyke beard, inspired by the goatee, which features a pointed chin beard paired with a customised moustache. Rectangular faces Rectangular faces share similarities with square faces in terms of defined lines, but the distinction lies in length. Squared off at the forehead and jawline, but with cheekbones that match in width. The rectangular shape commonly known as the oblong face is masculine, but long. The function of facial hair here is to shorten the appearance of the face. Growing a big bushranger beard would not do you any favours; instead, opt for a moustache or if you do grow a beard, keep it shorter at the chin and grow out the tops of the cheeks to help round out your mug. To give a rectangular face a broader appearance, opt for a full facial hair look. The hipster beard is a popular choice for achieving this effect. The hipster’s beard is a modern trend with a nostalgic touch. Styling this beard is all about thickness, requiring at least a month or two of growth before shaping. Consider your overall look, as a shorter hairstyle may complement the hipster beard, preventing your face from being overshadowed by the hair. Fret not if the chosen style does not suit your face. A quick shave will have remedied matters and you will have lost nothing except the time it took to grow the facial hair. Happy grooming.
LYFE LYFE WEDNESDAY | MAR 6, 2024 24 A PROMINENT Telegu actor Varun Tej finds himself in the mid of promoting not only his upcoming film but also his inaugural Hindi language venture Operation Valentine. Directed by Shakti Pratap Singh, this cinematic endeavour boasts a unique bilingual format, incorporating both Hindi and Telegu languages. Released on March 1, the film draws inspiration from the tragic Pulwama attack that occurred on Valentine’s Day on Feb 14, 2019 along the Jammu-Srinagar Highway. In Operation Valentine, Varun assumes the role of an Indian Air Force (IAF) officer, while Manushi Chhillar portrays a radar officer, adding depth to the narrative. What adds an intriguing layer to Varun’s involvement is his dedication to mastering Hindi for the role. Despite being a South Indian actor, Varun underwent rigorous Hindi coaching and training for two months to ensure impeccable diction. Amid promotional duties for the movie, Varun took a moment to discuss his personal life, notably his wedding in Nov 2023 in Tuscany, Italy despite India’s Prime Minister Narendra Modi’s call for influential families to host their grand ceremonies within India. He candidly explained that while traditional weddings in his family typically accommodate A FORMER assistant director at Yash Raj Films (YRF), Anurag Gopal Pandey, stirred controversy when he was caught on video hurling abusive language at actress Rani Mukherjee and the studio’s casting director Shanoo Sharma. The incident unfolded on Feb 22 outside the renowned designer Manish Malhotra’s Actors union tightens protocols OUTSIDE the film industry, in this case Hollywood, most are not aware that when it comes to filming intimate scenes, it is not just the film’s director going wild with their direction on what they want the actors and actresses to do. There are protocols in place to protect the talents before and during filming so that things do not go overboard and infringe on their safety, and these are handled by so-called intimacy coordinators. In a recent debacle involving Jenna Ortega over her role in Miller’s Girl, the Screen Actors Guild-American Federation of Television and Radio Artists (SAGAFTRA) actors union has stepped in to make sure consent over the filming of intimate scenes extends long after actors have left the set. The union has issued new standards and protocol guidelines Freeman is 31 years older than Ortega. - LIONSGATE oSAG-AFTRA sees red over an intimacy coordinator’s breach of rules over consent █ BY MARK MATHEN VICTOR Yash’s arrival steals show THE atmosphere was electrified as actor Yash Gowda made a grand entrance at the inauguration ceremony of a temple in Karnataka, his hometown, where he enjoys superstar status. Adorned in a vibrant yellow shirt, with a bandana adorning his forehead and sunglasses shielding his eyes, Yash arrived in a white car, sending his fervent fans into a frenzy as they clamoured to catch a glimpse of the KGF star. Amid the sea of excited admirers, a viral video captured the efforts of the police as they worked tirelessly to manage the overwhelming crowd that had gathered for the event in Bellary. Post-ceremony, amid the buzz, the media seized the opportunity to pose impromptu questions to Yash, who eloquently responded in his native Kannada. Notably, the event also saw the presence of acclaimed RRR film director SS Rajamouli, adding to the grandeur of the occasion. - S. TAMARAI CHELVI Varun’s multilingual debut Varun underwent Hindi language coaching to improve his diction for his new film. - INSTAGRAM / VARUNKONIDELA7 █ BYS. TAMARAI CHELVI Arjona revealed that Ortega (pictured) was “very sure of what she wanted to do” and gave “continuous consent”. - LIONSGATE for intimacy coordinators when discussing their on-set work with actors. According to IndieWire, intimacy coordinators must now seek the permission of an actor to publicly share details of their intimate scenes. If they discuss what happened on set without the required permission, they will be removed from the SAG-AFTRA registry of certified intimacy coordinators following an investigation. The union made the move after intimacy coordinator Kristina Arjona made public statements with The Daily Mail about working with Ortega and Martin Freeman in the aforementioned film, which is an erotic thriller about a young student and middle-aged teacher getting into a controversial mentor-mentee relationship. Miller’s Girl was released on streaming platforms and immediately generated controversy, particularly over an alleged X-rated scene where Ortega and Freeman’s characters act out an erotic fantasy sequence. The updated SAG-AFTRA guidelines now state that intimacy coordinators “should maintain the confidentiality of an actor’s work and experience in performing highly sensitive scenes unless they have the actor’s permission to publicly share this information”. Deadline further added in its report that Arjona had signed a confidentiality agreement with Lionsgate as an employee of the film and also signed a nondisclosure agreement. Former staff hurls abuse at Rani thousands of guests, he chose to keep his celebration intimate, inviting only 100 close friends and family members to ensure a memorable and enjoyable experience. Varun tied the knot with actress Lavanya Tripathi, marking a significant milestone in both their personal and professional lives. Yash is a massive star in the state of Karnataka. - IWMBUZZ store in Khar, Mumbai, creating quite a stir within the industry. Despite attempts to defuse the situation, Pandey’s behaviour led to his removal from the premises. It is worth noting that Rani, the recipient of Pandey’s verbal attacks, is not only a prominent figure in Bollywood but also happens to be married to Aditya Chopra, the current owner of YRF Films. YRF Films holds a significant position in the Indian film industry as one of its leading production houses, making the incident all the more noteworthy due to its association with such a high-profile entity. - S. TAMARAI CHELVI Rani is married to Aditya, owner of YRF Films and a major Bollywood producer. - IMDB
LYFE LYFE WEDNESDAY | MAR 6, 2024 25 ON FEB 24, the air in Thiruvalluvar Mandapam, nestled within the tranquil confines of Port Klang, hummed with anticipation. It was a celebration of culture and tradition, orchestrated by the maestro of Padma Nrithyalaya Arts, Vinosree Shangkar. For over two decades, this visionary artist has been a beacon of innovation, breathing new life into the ancient art of Bharata Nrityam. The journey of Bharata Nrityam is a tapestry woven with threads of history, tradition and innovation. Rooted in the sacred scriptures of the Natya Shastra, this dance form finds its genesis in the divine Karanas of Lord Shiva. Guided by her illustrious mentor, Dr Padma Subrahmanyam, Vinosree embarked on a quest to resurrect these forgotten movements, infusing them with contemporary relevance. The performance, a crescendo of devotion and artistry, marked the 25th anniversary of Padma Nrithyalaya Arts. It was a testament to the unwavering dedication of Vinosree and her disciples, who have spent countless hours honing their craft within the hallowed halls of the school. As the curtains rose, the audience was transported into a world where tradition met innovation and spirituality intertwined with rhythm. The dancers, resplendent in their traditional attire, were embodiments of grace and elegance. Each movement was a testament to their dedication and discipline, as they navigated intricate footwork and delicate hand gestures with effortless precision. The vibrant colours of their costumes mirrored the kaleidoscope of emotions that unfolded on stage, painting a vivid tableau of Indian mythology and culture. The evening began with Pushpanjali, a soulful invocation to the divine, followed by an obeisance to Lord Ganesha in Sri Vignam Rajam Baje. The dancers’ movements flowed seamlessly, their bodies becoming vessels through which ancient stories were told. From the playful Alarippu, symbolising the awakening of life, to the reverent ode to Lord Murugan in Murugan Kauthuvam, each piece unfolded like a fragrant blossom, filling the hall with its beauty and fragrance. A highlight of the evening was the performance of Thiruvichaippa, a timeless composition that traces its origins to the golden age of the Chola dynasty. As the dancers wove their way through the intricate rhythms and melodies of the ancient song, they transported the audience back in time, evoking the splendour of royal courts and temple festivals. But amid the grandeur and spectacle, there were moments of pure d e l i g h t a n d innocence. A twoyear-old prodigy, dressed as the mischievous Lord Krishna, captured the hearts of all with his infectious charm and boundless energy. His presence on stage was a reminder of the universality of art, transcending age and barriers to touch the hearts of all who witnessed it. As the final notes of music faded into the night, there was a collective sense of awe a n d wonderment in the air. Through their artistry and devotion, Vinosree and her disciples had not only preserved a cherished tradition but had also breathed new life into its timeless beauty. Those fortunate enough to witness this magical evening, it was an experience that would linger in their hearts and minds for years to come. For those eager to embark on their own journey of discovery, Padma Nrithyalaya Arts beckons with open arms. Dive deep into the enchanting world of Bharata Nrityam, where tradition meets innovation and spirituality finds expression through rhythm and movement. Visit their official Facebook page at facebook.com/NrithyalayaArts and take the first step towards a lifetime of artistic exploration and enlightenment. Dancers from Padma Nrithyalaya Arts in traditional costume. - PICS COURTESY OF PADMA NRITHYALAYA ARTS █ BY S. TAMARAI CHELVI A dancer depicting Lord Murugan in the middle. A vibrant performance of the Sri Chakra Rajarajeshwari. The dancers with Vinosree (from left in blue saree). The performers were immaculate with their execution of the intricate dance steps. oBharata Nrityam performance enchants audience in Port Klang Grace and tradition
LYFE LYFE WEDNESDAY | MAR 6, 2024 26 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Seeing the future I N a significant stride towards redefining patient care in the optical industry, Focus Point Holdings subsidiary – Focus Point Vision Care Group, has forged a transformative partnership with International Specialist Eye Centre (ISEC). This move comes as part of Focus Point’s ongoing commitment to enhancing the overall experience and accessibility of eye care services for individuals across Malaysia. Founded in 1989, Focus Point has established itself as a prominent player in the optical industry, offering a comprehensive range of eye care products and services. With a mission to provide quality eye care to all Malaysians, the company has built a strong reputation for its commitment to excellence and customer satisfaction. ISEC on the other hand, is renowned for its expertise in ophthalmology and surgical solutions. Specialising in a wide range of eye surgeries, including cataract surgery, refractive surgery and corneal transplants, ISEC is recognised as a leader in the field of eye care in Malaysia. The partnership between Focus Point and ISEC aims to leverage the combined strengths of both organisations to deliver an unparalleled level of service and care to patients. By integrating ISEC’s surgical Liaw giving speech during the mou signing ceremony. – PIC BY FOCUS POINT oFocus Point’s visionary partnership for optimal eye health █ BYHAZIQUE ZAIRILL Brewing dreams THE stage was set and the spotlight was on as Carlsberg Malaysia’s renowned Top Ten Charity Campaign returned after a three-year hiatus, bringing with it a whirlwind of excitement and positivity. With a dash of generosity and a sprinkle of magic, the campaign made waves, raising an impressive RM20.5 million to support 10 deserving vernacular schools. But this year, there was a new twist to the tale. Carlsberg Malaysia was not just about making dreams come true – it was also on a mission to champion environmental consciousness and sustainability. Teaming up with Zero Waste Malaysia (ZWM), they educated students on the importance of waste management, adding a touch of green to the campaign’s vibrant palette. The results were nothing short of spectacular. SJKC Sin Ya in Penang stole the show, raising a jaw-dropping RM7.8 million to upgrade their facilities and infrastructure. It was a momentous occasion, proving that when communities come together, anything is possible. SJKC Sin Ya principal Beh Khoon Seng could not contain his excitement, expressing gratitude for the incredible support that had poured in. Across the country, from Lahad Datu to Rawang, stories of success echoed, each one a testament to the power of unity and collective action. Since its inception in 1987, the Top Ten Charity Campaign has been a beacon of hope for vernacular education in Malaysia, raising an astounding RM568 million over 37 years. It is a tale of triumph, resilience and unwavering dedication — a story that continues to inspire and uplift. As Carlsberg Malaysia continues to write this captivating tale, the company invites everyone to join in the adventure, spreading joy and making a difference, one sip at a time. - BY ACE EMERSON For more information about the Top Ten Charity Campaign, visit toptencharity.com.my/web/. Let the magic begin. SJKC Sin Ya in Penang raised a record-breaking RM7.8 million, the highest in Top Ten history, to expand facilities and infrastructure. expertise with Focus Point’s comprehensive eye care services, patients can now benefit from a seamless and holistic vision care journey, from diagnosis to treatment and post-operative care. The signing of the memorandum of understanding (mou) at the Majestic Hotel Kuala Lumpur marks a significant milestone in the collaboration between the two entities. Focus Point CEO Datuk Liaw Choon Liang and ISEC CEO Dr Wong Jun Shyan expressed their shared vision and commitment to raising the standard of eye care in Malaysia through this partnership. In addition to the partnership with ISEC, Focus Point has also announced a collaboration with EyeMD Associates and Airdoc Technology (HK) Limited. This collaboration aims to introduce Airdoc’s AI-powered Fundus Interpretation screening service in Focus Point’s retail outlets, providing customers with advanced screening and diagnostic capabilities to assess their eye health and detect potential risks for various chronic diseases. Through these strategic partnerships and initiatives, Focus Point is not only advancing the field of eye care but also reaffirming its commitment to making quality eye care accessible to all Malaysians. With a strong focus on innovation, excellence and patient-centric care, Focus Point continues to lead the way in shaping the future of eye care in Malaysia. Focus Point Joins forces with ISEC, EyeMD Associates and Airdoc Technology (HK) Limited for enhanced eye care.