CEOMorningBrief WEDNESDAY, JANUARY 3, 2024 ISSUE 695/2024 theedgemalaysia.com CHINA STOCKS SEE WORST START TO YEAR SINCE 2019 ON ECONOMIC WOES p19 HOME: PM congratulates MACC for taking action against ‘big sharks’ without fear or favour p2 FMM: Anti-Ali Baba law critical to deal with high number of undocumented workers p8 MACC probing RM700 mil in publicity spending by previous govts p13 WORLD: Japan’s quake toll nears 50 as rescuers battle to find survivors p16 Bitcoin tops US$45,000 for first time in nearly two years p20 Report on Page 5. The risks that may derail Malaysia’s growth in 2024 Report on Page 3. PM launches Padu ahead of targeted subsidy implementation VECTEEZY.COM The country is widely expected to chart a stronger economic growth of 4-5% in 2024, but some headwinds may blow it off course. Here’s a look at the top risks.
wednesday january 3, 2024 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] PM congratulates MACC for taking action against ‘big sharks’ without fear or favour PUTRAJAYA (Jan 2): Prime Minister Datuk Seri Anwar Ibrahim congratulated the Malaysian Anti-Corruption Commission (MACC) for acting without fear or favour against a number of “big sharks”, following several significant seizures of late. Anwar stressed that stern action needs to be taken against those who steal from public coffers in order to save the country from the perils of corruption. “I would like to congratulate MACC on its persistence to take action regardless of who the person is... Actions have been taken against figures who were seen as untouchable from being investigated,” he said in a speech at the launch of the Central Database Hub (Pangkalan Data Utama or Padu). “[If] you steal public funds, whether you are the prime minister, finance minister, or any minister, we have to take firm actions in order to save the country. “So there will be no more stories of these ‘big sharks’ escaping again. Our focus now is on these ‘big sharks’ so that the ‘small fishes’ can see,” Anwar added. The MACC on Dec 21 seized Ilham Tower, said to be owned by former finance minister Tun Daim Zainuddin, as part of the commission’s investigation over purported money laundering in relation to corporate transactions involving Renong Bhd and United Engineers Malaysia Bhd. Furthermore, rumours are rife that the MACC will summon a former prime minister and two aides in its probe into three separate cases of alleged misappropriation of funds. It was not immediately clear whether the probe is related to investigations linked to Daim. Bernama Bernama by Emir Zainul theedgemalaysia.com home ‘Fairer, more reasonable wage scheme for civil servants to be expedited’ Anwar downplays impact of ‘Dubai Move’ on administration PUTRAJAYA (Jan 2): Prime Minister Datuk Seri Anwar Ibrahim on Tuesday stressed that the implementation of a fairer and more reasonable wage scheme for civil servants will be expedited. Anwar, who is also the finance minister, said the unity government could not implement a new salary scheme last year due to the country’s financial situation and the high level of inherited debt. “[This year,] we have decided to expedite the implementation of a fairer and more reasonable wage scheme for civil servants, and you must believe this. “We could not do it last year, because we inherited a [bad] financial PUTRAJAYA (Jan 2): Prime Minister Datuk Seri Anwar Ibrahim on Tuesday said he has heard of the ‘Dubai Move’, adding that the movement to topple the unity government has had no impact on his administration. He said the focus of the government under his leadership now is on developing the nation and looking after the wellbeing of the people. “I have read about the ‘Dubai Move’ but for me, we are concentrating on our work. Their deception for me has no effect. “What is important is that we have started January 2 by launching an important programme (Central Database Hub — Padu) for the people,” he told reporters after launching Padu here Tuesday. Community Communications Department (J-Kom) deputy director gensituation with a national debt that was still at RM1.5 trillion and a fiscal deficit of 5.6%,” he said when launching the Central Database Hub (Padu), a system containing individual and household profiles encompassing citizens and permanent residents in Malaysia here on Tuesday. On July 14, the government agreed to review the civil service salary scheme, taking into account the increase in the cost of living and the fact that there had been no salary review since 2012. Following this, a meeting of the Cabinet Committee on Public Service Reform was held on Aug 7 to discuss the Public Service Remuneration System as a civil service reform initiative. eral Datuk Ismail Yusop on Dec 30 was reported claiming that the ‘Dubai Move’ took place in the capital of the United Arab Emirates (UAE), involving Opposition and government leaders during a trip there recently. Read also: DPM says received intelligence reports on ‘Dubai Move’ Datuk Seri Anwar Ibrahim speaks to Datuk Seri Ahmad Zahid Hamidi during the launch of Padu in Putrajaya January 2, 2024. Suhaimi Yusuf/ The Edge
wednesday january 3, 2024 3 The E dge C E O m o rning brief home Omnibus Act to be enacted this year for data sharing, cloud storage among govt agencies PUTRAJAYA (Jan 2): Prime Minister Datuk Seri Anwar Ibrahim has launched the Central Database Hub (Pangkalan Data Utama or Padu), a database containing individual and household profiles encompassing citizens and permanent residents in Malaysia, which will mainly be utilised for the implementation of the planned targeted subsidies by the government. The database is now accessible to the public until March 31 for the respective profile information to be verified and updated by individuals. The objective of Padu is to provide a safe, comprehensive and near real-time national central database that enables more accurate data analytics to be produced as well as for policy formulation and data-driven decision-making processes, besides enabling targeted policy implementation to balance the country’s fiscal position. Anwar said the initiative is aimed at ensuring a fairer distribution of subsidies, as the current implementation of subsidy distribution disproportionately benefits the affluent. “Padu will guarantee that the benefits of government subsidies are only enjoyed by the people who are truly entitled to receive them, while also to reduce costs for the government and to avoid leakages,” he said. PM launches Padu ahead of targeted subsidy implementation by Emir Zainul theedgemalaysia.com Bernama (From left) Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Prime Minister Datuk Seri Anwar Ibrahim and Economy Minister Rafizi Ramli seen on stage during the launch of Padu in Putrajaya on Tuesday, January 2, 2024. Suhaimi Yusuf/ The Edge PUTRAJAYA (Jan 2): The Omnibus Act is expected to be enacted this year to allow data sharing and cloud storage among government agencies, said Economy Ministry secretary-general Datuk Nor Azmie Diron on Tuesday. He said the implementation of data integration from every government agency needs to be supported through strong and sustainable data sharing legislation. According to him, each database is subject to relevant regulations and acts causing difficulties in data sharing between agencies. “Some of the existing databases are more in silos and non-interoperable with each other. This situation complicates the sharing and integration of data, and causes the Padu (Central Database Hub) data coordination process to take a long time,” he said in the opening speech in conjunction with the launch of Padu here on Tuesday. To address the challenge, Nor Azmie said ongoing engagement sessions at various levels, including by Economy Minister Mohd Rafizi Ramli and Chief contin ues on Page 4 Economy Minister Rafizi Ramli, who is heading the initiative, noted that the country’s fiscal position continues to be a challenge for the government to manage and could have an impact on the economy if reforms are not implemented to control spending and increase revenue. In addition, if not addressed, the ageing population of the country is also expected to increase the pressure on government spending, especially in terms of providing assistance and social protection. “Padu will be able to help the government to provide a more accurate measurement of the socioeconomic position of the people and avoid dropouts based on net disposable income. “This measurement method takes into account the number of dependents and the number of people in households, cost of living according to location, distance to work and ownership of assets such as houses, vehicles and land,” Rafizi said during his opening speech. “This approach also allows the government to move away from the classification of B40, M40 and T20 and look more into the justification of granting aid based on a set criteria,” he added. Rafizi said the implementation of targeted subsidies is expected to help the government achieve its target of reducing the fiscal deficit to between 3% and 3.5% of gross domestic product by 2025. Padu will act as a national database of socio-economic information for every household in the country, providing regular analytics with a comprehensive store of data updated in “near real time”. The database contains basic demographic information, address, education, household, occupation, income, financial commitments and assistance received, which are all retrieved from existing information supplied by various ministries and government agencies that are integrated into Padu. The system has been in development since June last year, and will see integration with MyDigital ID, the country’s national digital identification system at a later date. Read also: Fahmi: Malaysians can use Padu system without worries Public should not be concerned about Padu as data regulated under existing laws, says MDEC chairman Maybank IB: Padu to help reduce fuel subsidies by RM6 bil this year
WEDNESDAY JANUARY 3, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 2): Economy Minister Mohd Rafizi Ramli has allayed concerns that Malaysians can be locked out of registering for a Central Database Hub (Padu) account by other people in possession of the applicant’s personal details. He explained that the registration would only be valid once the e-KYC (Electronic Know-Your-Customer) process was successful, and that requires the uploading of the applicant’s selfie and a copy of his or her MyKad. “Unless the eKYC is completed, the registration would not be complete or valid,” the minister said on the social media platform X (formerly known as Twitter) on Tuesday. Rafizi was responding to former DAP lawmaker Ong Kian Ming’s call to Malaysians to quickly register their accounts to avoid identity theft issues. “Please register your Padu account at padu.gov.my immediately. If not, your IC address can register your IC on your behalf since the registration is before the eKYC approval which takes three days. It will be a hassle to get back your account,” said Ong on the social media platform X on Tuesday after the official launch of Padu. “To test this out, I obtained the IC nos and postcode of my colleagues from the electoral roll @scheekeong @hannahyeoh @LiewChinTong @TeoNieChing and registered Padu accounts using my own phone no and email address... now they cannot register accounts themselves,” he said referring to four DAP cabinet members, namely Human Resources Minister Steven Sim Chee Keong, Youth and Sports Minister Hannah Yeoh, Deputy Investment Trade and Industry Minister Liew Chin Tong and Deputy Communications Minister Teo Nie Ching. Rafizi said applicants who encountered such issues can reach out to the Padu helpdesk. “If there is a situation where someone Rafizi allays concerns about Padu registration after former lawmaker raises possible teething issues BY JUSTIN LIM theedgemalaysia.com Secretary to the Government Tan Sri Mohd Zuki Ali, were held. A memorandum of understanding was also signed with related agencies to enable data sharing, he added. “Security risks and classified information leaks are also often raised by various parties. Therefore, data and cybersecurity aspects are also given serious attention through the strengthening of system development as well as strategic cooperation with all relevant parties,” said Nor Azmie. Meanwhile, he said, the development of Padu will go through several phases that also involve the collection of adminFROM PAGE 3 istrative data for the development of Padu, which is focused on the ministries and agencies of the federal government that have their respective databases in the first phase. Nor Azmie said that so far, most agencies at the federal level including the National Registration Department, the Public Service Department, the Inland Revenue Board and Tenaga Nasional Bhd had agreed to supply data. “Padu also needs some important information from the state government and local authorities. “Based on the digital gap that exists, especially in rural and interior areas, we expect there will be some people who do not have access to Internet facilities. This matter has been taken into account in the planning of the implementation of Padu through the provision of special counter services close to where they live each,” he added. For now, registration can be done at the State Operations Office of the Department of Statistics Malaysia and the Digital Economy Centre (PEDi), and a special task force will also be created to help individuals who are in remote areas and do not have internet access. “This team will be equipped with Starlink services to enable registration to be done online,” said Nor Azmie. else’s account is registered, the user can go directly to the Helpdesk (online, call center or physical counters),” he said. Rafizi also dismissed Ong’s claim that it would take three days to obtain the eKYC approval. “The industry standard eKYC provided by eKYC systems in the market mentions three days (as do applications in the market), but so far eKYC for registered users takes less than five minutes to be verified. He explained that Padu has placed eKYC as the last step for the registration process after taking into account that the eKYC process by an algorithm may take a few times before it is complete. Meanwhile, Rafizi said close to 40,000 eKYCs had been approved, while 300 eKYCs are “in the queue” waiting for approval as of 5pm on Tuesday. In total, 70,000 applicants have successfully registered under Padu after four hours since the launch. Padu is a tool for ensuring the government’s efficiency in delivering targeted subsidies while also reducing costs for the government as it aims to avoid leakages. Last week, Rafizi said Padu was fully developed by civil servants from three agencies (the Ministry of Economy, the Department of Statistics Malaysia or DOSM, and the Malaysian Administrative Modernisation and Management Planning Unit or Mampu) in collaboration with all other agencies. Rafizi added that Padu was developed within seven months since May, and would not involve annual payments to private system providers because it belongs to the government. He said Padu involves the development of the largest data system ever made by the public sector, and possibly the largest in the country’s history, because it concerns details for each of the 32 million Malaysians, forming hundreds of millions of data points.
WEDNESDAY JANUARY 3, 2024 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 3): Malaysia is widely expected to achieve the official forecast of 4-5% gross domestic product (GDP) growth this year, driven by the continued expansion of its domestic consumption that is underpinned by a resilient labour market, and potential recovery in global trades amid higher expectation that the US would avoid a recession. But economists have also highlighted five top downside risks that may derail the country’s anticipated GDP growth. Of them, four are external risks. Geopolitical risks Socio-Economic Research Centre (SERC) executive director Lee Heng Guie, who expects Malaysia GDP to grow by 4.5% in 2024, with the global economy forecasted to muddle through to a “soft landing” in 2024, said geopolitical tensions present macro risks to the country’s growth. “These include elevated trade tensions between the US and China, the ongoing conflict in Ukraine and the recent outbreak of war between Israel and Hamas in the Middle East,” he told The Edge. Maybank Investment Bank — which expects a 4.4% GDP growth for Malaysia this year — pointed out that while US-China tensions seem to have eased somewhat after leaders of both countries met during the Apec Summit in San Francisco last November, core economic issues between the two largest economies remain, namely trade tariffs and restrictions in trade and investments in advanced technology. BY CHESTER TAY theedgemalaysia.com The risks that may derail Malaysia’s growth in 2024 “Currently, the market appears to be pricing in the scenarios of prolonged stalemate in Russia-Ukraine war, and no-or-low risk of Israel-Palestine conflict broadening into another episode of Middle East tension,” it said in a note last month. UOB Malaysia’s senior economist Julia Goh believes that geopolitical and macro risks will “continue to keep investors on edge in the near term. “This could lead to a prolonged bottoming process for Asia currencies (including the ringgit) alongside the renminbi,” she told The Edge, forecasting a firmer Malaysia GDP growth of 4.6% in 2024. “Ringgit has a high correlation to the renminbi, more so than other regional peers and Malaysia encounters a larger negative interest rate differential with the US rate than most countries [among regional peers]. “Hence, subsequent recovery in renminbi and a peak in the US Fed rates followed by expected Fed rate cuts would be key determinants to the ringgit performance in 2024,” she said, adding the local note’s performance this year will continue to be driven by external factors. China’s worrying growth prospects Being the largest economy in Asia, China’s “underwhelming” post-pandemic growth is seen as a key downside risk to global and Asean economic outlook, according to Maybank IB. In a note to clients on Tuesday, SPI Asset Management managing partner Stephen Innes noted that China’s factory activity and non-manufacturing PMI in December indicate a slowdown in recovery in the world’s second largest economy. “This development is expected to pressure fiscal and monetary policymakers to take urgent action, especially after leaders committed to maintaining a pro-growth stance in 2024. “China requires more than just stimulating economic activity — it necessitates fundamental reform of the underlying growth engine,” he said. CONTINUES ON PAGE 6 THE EDGE Malaysia’s GDP growth since 2016 -6 -4 -2 0 2 4 6 8 10 f= forecast Sources: BNM, Bloomberg 2016 2017 2018 2019 2020 2021 2022 2023f 2024f 4.5 5.8 4.8 4.4 -5.5 3.3 8.7 (%) 4.0 4.5
wednesday january 3, 2024 6 The E dge C E O m o rning brief home Read also: Maybank IB: 2024 to be ‘take-off’ year for Malaysia’s economic transition, with GDP growth at 4.4% from Page 5 China’s factory activity contracted for a third consecutive month in December, with manufacturing PMI dropping to 49.0 from 49.4 in November, while the service sector PMI sub-index in December remained in contraction at 49.3, same as November. CGS-CIMB Securities head of economics Nazmi Idrus said among the reasons for the ringgit’s weakness is China being its major trade partner, as the local currency has some affinity with the renminbi’s movements. “Even though the Fed (US Federal Reserve) is expected to cut [the benchmark rate in 2024], the rate reduction is only partial; it has raised rates by over 500 basis points (bps) so far but is expected to cut only by 100bps,” said Nazmi, who is forecasting a 4.6% GDP growth for Malaysia in 2024. “The timing [of the cut] varies across analysts so that will determine the strength and timing of ringgit’s appreciation. Regardless, a stronger ringgit will ease some of the imported inflation and perhaps improve the purchasing power,” he added. Slower US growth, if not a full-blown recession While the anticipation of a full-blown US recession has eased amid expectations that the Fed would be able to pull off a “soft-landing” this year, there are concerns of slowing growth in the world’s largest economy, while worries of a downright recession still linger. MIDF Research, while sanguine on Malaysia’s growth in 2024 with an anticipated 4.7% GDP increase, still highlighted in a note on Tuesday that the risk of a US recession, alongside the escalation of geopolitical tensions that could bring another round of supply disruptions and fluctuations in the commodity and financial markets, would hurt Malaysia’s growth outlook. Maybank IB is expecting slower growth in the US. “The prospect of US growth “soft-landing” is enhanced by the falling risk of 2024 recession as the US yield curve is ‘flattening’ after the earlier ‘inversion’,” said the investment bank. Key elections to watch Maybank IB also highlighted several elections taking place in 2024 that may shape international relations and impact global growth. “There are also several key elections taking place in 2024 that we need to keep an eye on — the presidential elections in US and Indonesia, as well as the Taiwan election,” said the investment bank in a note last month. “The big one is [the] US Presidential election on Nov 5, 2024, considering that there is the possibility of a Trump comeback as opinion polls point to Trump leading President Biden by wide margins,” it noted. Taiwan’s election is scheduled to be held this month, followed by Indonesia in February, India between April and May, and the European Parliament in June, before the November US presidential election. Maybank IB said a comeback of former US president Donald Trump could potentially have wide-ranging policy impact in the US-China trade tariff and technology wars, which could lead to deteriorating bilateral relations. “Indonesia will go into election on Feb 14, 2024 to pick President Jokowi’s successor, and thus [we] will see whether there will be policy continuity or change. Another key political event to watch is the Taiwan election on Jan 13, 2024, the outcome of which has bearings on US-China relations,” it added. Domestic vulnerabilities While Malaysia has a relatively stable political scene now compared with last year, there are vulnerabilities in the domestic economy that may weaken the country’s ability in weathering global uncertainties, economists noted. Capital Economics’ emerging Asia economist Shivaan Tandon, who is forecasting a 5% growth for Malaysia’s GDP this year, cautioned that the country may struggle to record economic growth over the next few quarters, with inflation set to rise in 2024, and little room for the central bank to manoeuvre. “Despite the rebound in GDP growth last quarter (to 3.3% in the third quarter of 2023 from 2.9% in 2Q), the near-term outlook for the economy is poor,” he told The Edge in an email reply. “Meanwhile, weak global demand will drag on its exports of goods. Domestic demand is also likely to weaken. Fiscal policy is set to be tightened further in 2024 as the government tries to put the fiscal position on a more stable footing. The country’s debt-to-GDP ratio is among the highest in the region,” he said. “Tight monetary policy will also drag on investment and consumption. While the scale of monetary tightening in Malaysia has been modest relative to elsewhere in Asia, high levels of household and corporate debt make the country especially vulnerable to higher borrowing costs. While he noted that price pressures have eased sharply over the past year and weaker demand-side pressures will lead to further falls in core inflation, the headline rate is set to rise in the coming months after the government announced it would be cutting fuel and food subsidies next year. Nevertheless, Shivaan said “the central bank will wait to assess the impact of the subsidy cuts rather than acting pre-emptively”. His forecast is that interest rates will remain on hold throughout next year. SERC’s Lee is expecting private consumption growth to normalise to 5.3% in 2023 and to slow to 4.6% in 2024, as households and consumers turn cautious in their discretionary spending. “There are numerous reasons to expect consumer spending growth to slow in 2024: targeted subsidy rationalisation, high cost of living and inflation risk as well as higher service tax rate for some services,” he said. As Malaysia looks ahead to 2024, the potential hurdles that lie in the path of its economic growth targets and the nation’s ability to navigate around these uncertainties with limited fiscal room will be closely watched. Source: Bloomberg Ringgit and other major currencies versus the US dollar over last 12 months -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 (%) British pound Euro Thai baht Singapore dollar Indonesian rupiah Philippine peso Hong Kong dollar Australian dollar South Korean won Offshore Chinese renminbi Chinese renminbi Malaysian ringgit -7.82 Japanese yen 4.91 2.78 1.36 1.21 0.67 0.12 -0.10 -0.19 -2.08 -3.04 -3.36 -4.38
WEDNESDAY JANUARY 3, 2024 7 THEEDGE CEO MORNING BRIEF
wednesday january 3, 2024 8 The E dge C E O m o rning brief home Demand conditions remain muted across Malaysia’s manufacturing sector FMM: Anti-Ali Baba law critical to deal with high number of undocumented workers by Surin Murugiah theedgemalaysia.com by Surin Murugiah theedgemalaysia.com KUALA LUMPUR (Jan 2): The proposed Anti-Ali Baba law by the government, which is intended to act against Malaysians who illegally rent out their business licences to foreign workers without meeting certain conditions, will be a critical factor in dealing with the issue of high numbers of undocumented workers in the country, according to the Federation of Malaysian Manufacturers (FMM). In a statement on Tuesday, FMM president Tan Sri Soh Thian Lai said the influx of foreign workers for purposes other than employment is indeed a cause for concern and a national problem, which must be dealt with in a comprehensive and transparent manner in order to tackle the issue effectively. “Equally critical to addressing the issue of undocumented workers in the country would be to ensure a credible recruitment system and holistic enforcement activities. “The proposed legislation should deter our local businessmen from misusing the privileges given by the government for locals to operate businesses, as well as deter foreigners from running businesses illegally, including those foreign workers who run away from their legal employers to run their own business,” he said. Soh said the main reason for the influx of undocumented foreign workers in the country stemmed from the previous policy of allowing outsource companies/agents to bring in foreign workers as outsourced workers, and not as direct workers for industries. He said the other factor contributing to the influx of undocumented workers is the weak enforcement, which had allowed the undocumented workers to remain here for prolonged periods, and eventually led to many running their own business, which under the domestic laws is not allowed. “Legal workers also abscond from their legal employers when lured with promises of higher wages and better working conditions,” he said. “Enforcement against the parties involved and responsible in these activities must be beefed up,” he said. Soh said it is unfair to blame employers for worker abscondment, as employers are under tremendous pressure to ensure that they adhere to strict labour practices with the increasing spotlight and significant intensification of global action against forced labour and human trafficking, as well as the rising adoption of environmental, social and governance elements in business operations. “Any unhealthy business practice would have a damaging impact and jeopardise the competitiveness of our manufacturers in the global supply chain, and significantly threaten and damage the company’s reputation, investor relations as well as concurrently tarnish the entire sector’s and country’s standing in the global arena. “The collective steps towards addressing undocumented workers and implementation of other labour reform initiatives including the multi-tier levy mechanism would be critical to the success of reducing dependency on foreign workers and towards moving to a high-income status nation,” said Soh. KUALA LUMPUR (Jan 2): Latest data signalled further subdued trends across the Malaysian manufacturing sector at the end of 2023. In a statement on Tuesday, S&P Global Market Intelligence said that demand generally remained muted, leading firms to scale back production, amid limited new order inflows. That said, the firm said the rate of moderation in output was the softest since August. Despite weak demand, firms opted to take on additional staff for the first time in eight months during December, albeit only fractionally. At the same time, input price inflation eased for the first time in three months, and was the weakest recorded since September. The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers index (PMI) was unchanged at 47.9 in December, indicating that business conditions remained challenging for manufacturing firms. The latest PMI data suggested that gross domestic product growth was running at a similar level to that seen in the second and third quarters of the year, as well as pointing to modest year-on-year improvements in official manufacturing production data. Manufacturers often noted that demand in the sector remained subdued during December, with reports of weak customer confidence. As a result, total new business moderated for the 16th successive month, though the rate of reduction was little changed from November. Demand conditions in international markets also eased, with new export orders falling for the eighth month in a row, but at the softest rate since May. With customer demand remaining muted, manufacturers scaled back production for the 17th month running. Read the full story Data collected from Dec 6 to 18, 2023. Sources: S&P Global PMI, Department of Statistics Malaysia via S&P Global Market Intelligence Malaysia's manufacturing PMI sa, >50 = improvement since previous month Gross domestic product -20 -15 -10 -5 0 5 10 15 20 30 35 40 45 50 55 60 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 % year-on-year
wednesday january 3, 2024 9 The E dge C E O m o rning brief home Loss-making Fast Energy spikes to near one-year high Sg Bagan, Kluang Rubber, Kuchai Development lead top gainers on RM275 mil asset injection by Lam Jian Wyn & Syafiqah Salim theedgemalaysia.com by Chester Tay theedgemalaysia.com KUALA LUMPUR (Jan 2): Sungei Bagan Rubber Co (M) Bhd (Sg Bagan), Kluang Rubber Company (M) Bhd (KRCB), and Kuchai Development Bhd led Bursa Malaysia’s top gainers on 2024’s first trading day, soaring to multi-year highs after a RM275 million shares-for-assets deal was unveiled last Friday (Dec 29). Sg Bagan’s share price, which opened at RM3.43 — 18 sen higher than its previous close of RM3.25 — jumped further to a record high of RM4.22, up 97 sen or 29.85% from its last close, making it the top gainer of the day on the local bourse. This price level gives it a market capitalisation of RM279.92 million. It saw 677,000 shares traded, 135 times the 5,000 shares the counter logged on Friday. Meanwhile, KRCB shares, the third top gainer of the day, saw its share price rise to its highest in more than two years, with trading volume surging to 166,500 from Friday’s 900 shares. The stock finished 72 sen or 19.89% higher at RM4.34, giving it a market capitalisation of RM274.17 million. Kuchai Development, on the other hand, shot up 37 sen or 29.6% to close at RM1.62 — its highest in almost six years — valuing the group at RM200.47 million, KUALA LUMPUR (Jan 2): Loss-making oil bunkering services provider Fast Energy Holdings Bhd shot up to a near one-year high on the first trading day of the year as the ACE Market-listed stock surged as much as 65.38% in early trade, before paring about half its gains. The penny stock, which jumped 8.5 sen to 21.5 sen, later closed at 17.5 sen — still up 4.5 sen or 34.62% — valuing the company at RM37.67 million. Fast Energy was the third most actively traded stock across Bursa Securities on Tuesday, with 138.11 million shares traded, far higher than its five-day moving average (MA) of 4.54 million shares, and its 20-day MA of 1.43 million shares as well as its 90-day MA of 942,062 shares. The reason behind the sudden surge was not clear, with the group’s last update on Bursa Malaysia was its third quarter ended Sept 30, 2023 (3QFY2023) results. The group reported a net loss of RM3.92 million for the nine-month period (9MFY2023), more than double the RM1.84 million net loss it incurred in the previous corresponding period. The decline was in spite of revenue growing 41% to RM275.21 million for 9MFY2023, from RM195.07 million previously. Sungei Bagan Rubber Co (M) Bhd 0 200 400 600 800 Dec 5, 2022 Jan 2, 2024 2.5 3.5 4.5 Vol (’000) RM *RM4.22 RM3.22 *As at 5pm. Jan 2, 2024 Source: Bloomberg Fast Energy Holdings Bhd 0 30 60 90 120 150 Jan 3, 2023 Jan 2, 2024 0 10 20 30 Vol (mil) RM 17.5 sen 13 sen Source: Bloomberg The group attributed the poorer financial performance to initial promotional and marketing costs and travelling expenses related to its new consumer electronics business. In October shareholders approved its proposal to diversify into the sale of mobile devices such as smartphones, smartwatches and their related accessories. The group’s annual report reveals a fragmented shareholding with the 30 largest shareholders collectively owning a 30.9% stake, the biggest among them, Bu Yaw Seng who owns 4.999%. Executive director Tan Wye Chuan, who owns a 0.16% stake, is the undertaking shareholder for Fast Energy’s recently proposed one-for-one rights issue which aims to raise up to RM19.4 million in proceeds based on an illustrative issue price of eight sen per rights share. Subsequent to the rights issue, Tan is estimated to own a 10.55% stake in the company, after injecting about RM2 million in proceeds through his undertaking. Read also: PBA Holdings’ shares hit record high after Penang govt says inking water deal with Perak this year after trading volume jumped to 564,200 shares from 6,000 on Friday. On Friday, Kuchai said it was injecting RM275.47 million worth of assets and liabilities into Sg Bagan in a share deal, which will see Kuchai holding 29.37% in Sg Bagan in exchange for the asset injection. The shares will then be distributed to Kuchai shareholders via a proposed capital reduction and repayment, and dividend-in-specie at a date to be determined later. According to Kuchai, the assets include freehold commercial property in Emerald Hill Road, Singapore; freehold agriculture land in Ulu Semenyih; Singapore dollar bonds and US dollar redeemable preference shares; and equity instruments in the Singapore Stock Exchange; as well as other receivables. The exercise is intended to streamline the assets of the two companies who share a common shareholder in KRCB. KRCB holds 42.2% of Kuchai and 43.5% of Sg Bagan.
wednesday january 3, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 2): AGX Group Bhd, a third-party logistics service provider preparing to go public on the ACE Market of Bursa Malaysia, has signed an underwriting agreement with TA Securities Holdings Bhd to underwrite a total of 21.65 million new shares in AGX’s upcoming initial public offering (IPO). AGX’s IPO comprises a public issue of 96.5 million new shares, and an offer for sale of 30 million existing ordinary shares. Out of the 96.5 million new shares, 21.65 million will be made available to the public via balloting, with 6.32 million shares allocated to eligible directors and employees of the group. The remaining 68.53 million new shares will be privately placed with selected investors. TA Securities also serves as the principal adviser, sponsor, and placement agent for the group’s IPO. Established in 2004, AGX specialises in third-party logistics services, spanning sea and air freight forwarding, aerospace logistics, warehousing, and road freight transportation. The group operates physically in Malaysia, the Philippines, South Korea, MyTA Securities to underwrite ACE Market-bound AGX Group’s IPO KUALA LUMPUR (Jan 2): The planned disposal of a 20.77% stake in troubled Boustead Naval Shipyard Sdn Bhd (BNS) by Boustead Heavy Industries Corp Bhd (BHIC) to the Ministry of Finance, Inc has been extended for a fourth time to Jan 31, 2024. In a filing on Tuesday, BHIC said the extension agreement was reached after the expiration of the third extended conditional period on Dec 31, 2023, as the involved parties require more time to fulfill the conditions precedent to the RM1 deal. “For avoidance of doubt, all other terms and conditions of the SSA [share sale agreement] remain unchanged,” the filing read. The disposal is part of the government’s plan to assume full control of the RM9.13 BHIC extends conditional period for RM1 Boustead Naval stake sale to MOF Inc for fourth time Foreign funds bought RM165.3 mil of Malaysian equities in last week of 2023 by Choy Nyen Yiau theedgemalaysia.com by Surin Murugiah theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com billion littoral combat ship (LCS) project, which BNS failed to deliver on time. On Aug 18, 2023, BHIC’s indirect wholly owned subsidiary Perstim Industries Sdn Bhd (PISB) had entered into an SSA with Ocean Sunshine Bhd (OSB), an indirect unit of Minister of Finance, Inc. PISB was to dispose of its stake in BNS to OSB, with the conditions precedent to be fulfilled within 30 days of the date of the SSA, or an agreed-upon extension of 21 days, or a longer period determined by parties to the agreement. The deal would then be deemed completed within seven days of all the conditions being met. The conditions precedent include executing a conditional inter-company trade receivables reorganisation agreement between BHIC and BNS, focused on settling the repayment of RM383.94 million or any other amount owed by BNS to BHIC. Other prerequisites involve obtaining necessary written consent from BNS’ lenders and BHIC’s financiers or creditors. Boustead Holdings currently holds a direct stake of 68.85% in the remaining equity interest in BNS, with the Armed Forces Fund Board (LTAT) owning 10.38%. Notably, LTAT took Boustead Holdings private in June 2023. Shares in BHIC traded 1.5 sen or 3.13% higher at 50 sen at the time of writing, giving the group a market capitalisation of RM122.99 million. anmar, Singapore, and Cambodia (via an associate), facilitating the transportation of goods from origin to final destinations. AGX also provides aerospace logistics services involving the coordination of air freight for aircraft parts, components, and equipment, thereby distinguishing the group within the industry. According to AGX, the group plans to utilise the IPO proceeds to expand its business both domestically and internationally, encompassing the establishment of new warehouses and offices in Penang and Johor Bahru, as well as a new office in Busan, South Korea, to strengthen its regional presence. KUALA LUMPUR (Jan 2): Foreign funds acquired RM165.3 million of Malaysian equities in the final trading week of 2023, extending the inflow for a third week running. In its weekly fund flow report on Tuesday, the MIDF Research team said foreign investors net bought RM85.2 million last Wednesday and RM187.9 million on Thursday, but net sold RM50.3 million on Tuesday and RM57.5 million on Friday. “For the week, the top three sectors with the highest net foreign inflows were technology (RM213.1 million), energy (RM45.0 million) and industrial products and services (RM37.0 million). “The top three sectors with the highest net foreign outflows were financial services (RM93.5 million), healthcare (RM59.8 million) and construction (RM27.8 million),” it said. MIDF said local institutional investors continued to net sell for the second straight week at RM189.6 million, which was 77.7% more than the week prior. It said they net bought RM21.0 million on Tuesday and RM58.9 million on Friday, but net sold RM66.9 million on Wednesday and RM202.7 million on Thursday. “Local retailers net bought RM4.3 million last week, after net selling in the two previous weeks. “They net bought RM29.3 million on Tuesday and RM14.8 million on Thursday, but net sold RM18.4 million on Wednesday and RM1.4 million on Friday,” it said. MIDF said in terms of participation, there was an increase in the average daily trading volume among local institutions by 11.6%, while declines were seen among local retailers (4.3%) and foreign investors (22.0%).
wednesday january 3, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 2): Investment analysts have shared mixed views on the Malaysian banking sector’s valuations and outlook, while naming Public Bank Bhd, CIMB Group Holdings Bhd, AMMB Holdings Bhd and Alliance Bank Malaysia Bhd as their top picks. Hong Leong Investment Bank (HLIB) Bhd expects the banking sector profit to grow at a slower rate of 5%/4% in FY2024/ FY2025 compared to estimates of 14% in FY2023, no thanks to the limited recovery in the net interest margin (NIM), a slowdown in non-interest income growth, and the absence of non-credit cost (NCC) write-backs. This puts the sector at a relative lag behind the broader market, where the FBM KLCI is anticipated to surge by a swifter 8% throughout the year. At Tuesday’s closing bell, the Bursa Malaysia Financial Services Index was 16.31 points or 0.10% lower at 16,286.73. The FBM KLCI, meanwhile, slipped 0.11% or 1.56 points to 1,453.10. “In our view, the risk-reward now is more balanced as there are no new positive catalysts to spur share prices significantly higher,” said the research house, which maintained its ‘neutral’ rating for the sector. “Valuations are not excessive and hence, we feel it is too premature to turn full-on bearish,” it said in a note on Tuesday. HLIB named Public Bank Bhd, AMMB Holdings Bhd and Alliance Bank Malaysia Bhd as its top picks, all receiving “buy” recommendations and target prices (TPs) of RM4.80, RM4.20, and RM3.95, respectively. Public Bank is endorsed by HLIB due to its defensive qualities and multi-year low in foreign shareholding. It favoured AMMB for its dividend payout bandwidth in the near future and Alliance Bank due to its inexpensive valuation. In contrast, MIDF Investment Bank Bhd said valuations in the sector remain attractive and it advises investors to be more selective in their choices as not all banks have optimal outlooks. The research house reiterated its “positive” call for the banking sector due to strong valuations and dividend outlook. “We feel that upside rerating drivers should provide a boost to sector valuations, especially since the worst seems over for now”. “Further asset quality and NCC improvement expected — with high writeback possibility. Post-CNY [Chinese New Year] FD [fixed deposit] rate testing by banks — there is a possibility for further normalisation in rates, and subsequently upside to NIMs [and] Industry dividend outlook is still excellent,” said MIDF which favoured CIMB Group Holdings Bhd (buy, TP: RM6.62) and AMMB (buy,TP: RM4.23). Meanwhile, Kenanga Investment Bank Bhd expressed a more bullish stance on the sector, by maintaining its “overweight” rating as the research house expects loan growth of 4.5-5% in CY2024, slightly higher than its CY2023 assumption of 4-4.5%, premised upon a greener economic landscape. by Syafiqah Salim theedgemalaysia.com Analysts mixed on banking sector’s valuations and outlook, Public Bank, CIMB, AMMB, Alliance Bank the top picks It said the banking sector’s resilience will continue to be relevant to investors, especially with more prominent recessionary concerns seen in key regional markets. “Domestically, we see asset quality controls to remain tight, governed by BNM’s [Bank Negara Malaysia] strict requirements and prudent management by the banks which most still maintain some level of management overlays. Meanwhile, liquidity is expected to be sufficient as the focus on building their respective loans book and deposits book appear to be equal,” said Kenanga which kept its “overweight” rating. “At current price points, banking dividend yields still lead with 6-7% possibly being offered. For top picks, we opted to focus on high growth merit names which could see both nearterm and long-term interest for investors, being CIMB, AMMB and Alliance Bank,” it added. Shares of Public Bank dropped one sen or 0.23% to RM4.28, giving it a market capitalisation of RM83.08 billion. CIMB was down one sen or 0.17% to RM5.84, valuing the group at RM62.28 billion. AMMB rose 0.50% or two sen to RM4.03, with a market value of RM13.36 billion, while Alliance Bank slipped 0.59% or two sen to RM3.37, translating into a market capitalisation of RM5.22 billion. Read also: TA Securities raises MAHB’s TP to RM8.20, names it one of the top picks for 2024 Apex Securities starts coverage on Kim Loong, target price RM1.84 TP *As at 5pm, Jan 2, 2024 Source: Bloomberg Performance of selected banking stocks on Bursa Malaysia Maybank CIMB Public Bank AMMB Alliance Bank 8.124 5.347 4.225 3.958 *8.92 *5.84 *4.28 *4.03 *3.37 2 4 6 8 10 3.430 Dec 9, 2022 Jan 2, 2024 FBM KLCI vs Bursa Malaysia Finance Index *As at 5pm, Jan 2, 2024 Source: Bloomberg Dec 9, 2022 Jan 2, 2024 0 5000 10000 15000 20000 *16,286.73 *1,453.10 16,495.04 1,477.19 FBM KLCI Bursa Malaysia Financial Index
wednesday january 3, 2024 12 The E dge C E O m o rning brief home news In brie f MBM Resources appoints Rizal Mohd Zin as new group CEO KUALA LUMPUR (Jan 2): MBM Resources Bhd (MBMR) has appointed Rizal Mohd Zin as its new group chief executive officer, effective Jan 2, 2024. In the bourse filing on Tuesday, MBM Resources said Rizal was previously the group chief strategy officer of resinsurance group MNRB Holdings Bhd. Prior to that, he served as a director of investments at Ekuiti Nasional Bhd, where he was involved in numerous investments and divestments, while creating value for its portfolio companies. According to MBMR, Rizal has over 20 years of experience in the fields of corporate strategy planning and execution, transformation, performance management, mergers and acquisitions (M&A) and investment management. He holds a bachelor of arts in engineering and a masters in engineering from the University of Cambridge, UK. — by Luqman Amin Edaran bags RM356.56 mil contract to provide hardware, software rental services to Customs Dept KUALA LUMPUR (Jan 2): Edaran Bhd has secured a RM356.56 million contract to provide hardware and software rental services to the Royal Malaysian Customs Department, its Bursa Malaysia filing showed on Tuesday. The technology company said its whollyowned Edaran IT Services Sdn Bhd secured the 48-month contract from the Ministry of Finance (MOF), and that the letter of award was accepted on Tuesday. “Proceeds from the contract shall contribute towards the earnings of the group for the financial year ending June 30, 2024 (FY2024) until June 30, 2028 (FY2028),” it said. Edaran’s substantial shareholders are Valiant Chapter Sdn Bhd, with a 23.8% stake, Kauthar Sdn Bhd (8.17%) and Unique Pyramid (7.93%). Valiant Chapter is wholly-owned by Zamri Samsuddin, while Unique Pyramid is owned by Ruzila Ab Kadir, according to checks with the Companies Commission Malaysia. Kauthar, meanwhile, is 95%-owned by Edaran’s founder, previously prominent corporate figure Tan Sri Tajudin Ramli, while the remaining 5% is held by his spouse Puan Sri Faridah Abdullah. Tajudin’s son, Fazlan Azri Tajudin, sits on the company’s board as an executive director. Shares in Edaran closed 4.5 sen or 5.17% higher to 92 sen on Tuesday, giving it a market capitalisation of RM54.90 million. — by Sulhi Khalid Heitech Padu secures RM58.88 mil network services contract from IRB KUALA LUMPUR (Jan 2): Technology services provider Heitech Padu Bhd has secured a RM58.88 million contract to provide Next Generation Network services for the Inland Revenue Board (LHDN). In a bourse filing on Tuesday, Heitech Padu said it had accepted and signed the letter of acceptance (LOA) from LHDN on Dec 29. The group said the contract will be from Jan 1, 2024 to June 30, 2027, spanning three years and six months. Heitech Padu shares closed one sen or 1.14% higher at 89 sen on Tuesday, giving the group a market capitalisation of RM90.09 million. — by Choy Nyen Yiau LYC Healthcare buys out JB confinement centre JV partner’s 49% stake for RM4.5 mil KUALA LUMPUR (Jan 2): LYC Healthcare Bhd is buying out its Singapore joint-venture (JV) partner’s 49% stake in a 67-bedroom confinement care facility in Johor Bharu for RM4.5 million cash, to be paid via monthly instalments of RM300,000. The facility is owned by LYC SOG Mother & Child Sdn Bhd, which is 51%-owned by LYC Healthcare and 49% by SOG Mummy & Baby Centre Pte Ltd, a wholly-owned unit of SOG Health Pte Ltd in Singapore. The proposed acquisition presents an opportunity for LYC Healthcare to fully own and control the JV unit, providing flexibility in expanding its confinement care business in Johor, it said in a stock exchange filing on Tuesday. “The full ownership of LYC SOG also allows the LYC group to arrange and decide on the structure and timing for fundraising of new capital, as and when required, to ensure the successful execution of the group’s expansion plan in the confinement care business, as well as to capitalise on other future growth opportunities in the mother and childcare related services,” it said. LYC Healthcare expects the acquisition to be completed by the first quarter this year. — by Chester Tay Nestcon bags RM252 mil construction job in Klang Valley KUALA LUMPUR (Jan 2): Nestcon Bhd has bagged RM251.5 million in construction works for a mixed development project in Mukim Petaling in the Klang Valley. In a bourse filing, Nestcon said its wholly-owned subsidiary Nestcon Builders Sdn Bhd had accepted a Letter of Award (LOA) from Altimas Sdn Bhd. The work under the LOA consists of main building works for the proposed mixed development of parcel 2, one block of 30-storey apartment suites (408 units) and one block of 34-storey apartment suites (526 units) comprising amenities, car parks and shops. The completion of the contract works is within 34 months, which will commence on Jan 3 and is scheduled for completion by Nov 2, 2026. — by Justin Lim mnrb Water supply disruption: Penang prepares 10 jumbo water tanks in each district BUKIT MERTAJAM (Jan 2): The Penang government, in collaboration with the Penang Water Supply Corporation (PBAPP), will provide jumbo water tanks in each district to prepare for the water supply disruption from Jan 10 to 13. Chief Minister Chow Kon Yeow said PBAPP will rent 10 jumbo water tanks with a capacity of 20,000 to 30,000 litres to fill up all static tanks in public places. He added that the PBAPP would also send eight tanker trucks to the affected hospitals and dialysis centres. “The Seberang Prai City Council (MBSP) and Penang Island City Council (MBPP) will also deploy tankers to deliver water according to the set schedule. “Thirty-five volunteer fire brigades (PBS) in each district, including the Parit Buntar PBS, will assist in this operation and mobilise their equipment to the locations designated for water supply distribution,” he told reporters after inspecting the preparations of the Juru PBS to face the scheduled water disruptions on Tuesday. Bukit Tengah assemblyman Gooi Hsiao Leung was also in attendance. However, he urged residents to store an adequate amount of water and not to make last-minute preparations. Chow said the disruptions will take place to allow PBAPP to replace two 1,200-millimetre main control valves at the Sungai Dua water treatment plant, which supplies 85% of water to consumers in Penang. — Bernama
wednesday january 3, 2024 13 The E dge C E O m o rning brief home KUALA LUMPUR (Jan 2): The Royal Malaysia Police are collaborating with the Thai Narcotics Control Board and the Lao police in connection with the arrest of a man said to be a Malaysian ‘drug lord’ in Laos on Dec 28. Bukit Aman Narcotics Criminal Investigation Department director Datuk Seri Mohd Kamaruddin Md Din said the 41-year-old suspect, hailing from Police cooperating with Thai, Lao authorities over arrest of Malaysian ‘drug lord’ KUALA LUMPUR (Jan 2): The Malaysian Anti-Corruption Commission (MACC) started investigations into allegations that RM700 million was spent in promotional and publicity campaigns to showcase the government’s achievements during the two previous prime ministers’ administrations from 2020 to 2022. A reliable source said the MACC went to the Ministry of Finance (MOF) and Prime Minister’s Department (JPM) on Tuesday to start investigations and to gather information as well as documents related to the allegations. The source added that investigations were based on Prime Minister Datuk Seri Anwar Ibrahim’s response to a question from Batu Member of Parliament P Prabakaran, who was seeking an explanation on how much was spent by the government for promotional activities since 2020. “The MACC took a proactive decision to investigate recent revelation that a whopping RM700 million was spent for promotional and publicity purposes. “The expenditure included promotional and publicity initiatives carried out to promote the achievements of the government through all media platforms including print, digital media and television from 2020 to 2022,” said the source. The source added that the initial investigation was to determine how the money was spent and to determine whether proper procedures were followed. Following Anwar’s statement, Communication Minister Fahmi Fadzil posted on social media X that the public has the right to know how the RM700 million was spent. Meanwhile, MACC senior investigations director Datuk Seri Hishamuddin Hashim, when contacted, confirmed news of the investigations but refused to reveal further details. PUTRAJAYA (Jan 2): Floods have affected a total of 4,893.73 hectares of agricultural land and 2,269 farmers, resulting in losses estimated at RM22,823,601, said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi. “Among the severely affected agricultural areas are those in Kelantan,” he said at the media conference after chairing a briefing on the latest flood situation here on Tuesday. The Central Disaster Management Committee chairman said 51 health facilities were also affected, with 23 facilities in Kelantan, 17 in Pahang and 11 in Terengganu. MACC probing RM700 mil in publicity spending by previous govts Floods: 4,893 hectares of agricultural land affected causing over RM22 mil in losses Bernama Bernama Bernama Parit Buntar, Perak, was apprehended in Vientiane, Laos, for not possessing a valid travel document under the Lao Immigration Act. The Thai Narcotics Control Board recommended his deportation to Thailand, where he was blacklisted for drug offences. “Preliminary investigations found that the man is also believed to be linked to a network of syndicates in this country,” he said in a statement here on Tuesday while confirming that Malaysian police had received notification of the man’s arrest from the Thai and Lao authorities. The Thai police in a statement on Tuesday said that the Malaysian, believed to be a ‘drug lord,’ was arrested in a joint Thai-Laos operation, and he is suspected to be a key figure involved in supplying and coordinating drug activities in the Golden Triangle area since 2006. Ahmad Zahid said since the beginning of the north-east monsoon in early November last year, a total of 62,467 victims and 19,204 homes were affected in several states, adding that he hopes the district offices in the affected areas would distribute aid fairly to all flood victims. Ahmad Zahid, who is the Minister of Rural and Regional Development, said the National Disaster Management Agency (Nadma) was also on high alert to face the flood disaster expected to occur in Sabah and Sarawak from February to March. Meanwhile, Ahmad Zahid wanted the procurement process for hydraulic pumps to be expedited to tackle the stagnant floodwaters issue in several areas, especially on the east coast. “The request was made in March last year, and I received a report that the pumps are still not delivered due to procurement procedures. “Nadma has provided an allocation to the Irrigation and Drainage Department… during urgent situations, we must look for the best way to speed up the delivery,” he added. bernama
WEDNESDAY JANUARY 3, 2024 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Jan 2): Malaysian Anti Corruption Commission investigating officer Nur Aida Arifin told the High Court on Tuesday that her investigations showed Datuk Seri Najib Razak had allegedly committed the offence of using his position to receive gratification — an offence under Section 23 of the MACC Act. Nur Aida, 37, the 49th prosecution witness, said that Najib had received a sum of RM3.634 billion into two Ambank accounts. “The investigation into this case could be divided into four phases namely Good Star, Aabar, Tanore and Options buyback. From the testimony of the witnesses, documentation and financial analysis revealed the offence of using his position for gratification of a sum of RM3.634 billion (which) was deposited into Ambank accounts 2112022009694 and 2112022011880. “Of that amount, a sum of RM2.282 billion is the subject matter of this investigation,” she added. Nur Aida was responding to questions from Deputy Public Prosecutor Ahmad Akram Gharib. Najib’s lead counsel Tan Sri Muhammad Shafee Abdullah objected to Nur Aida’s statement as he claimed it was hearsay, and amounting to a conclusion which only the court could determine. Court of Appeal judge Datuk Collin Lawrence Sequerah, who is presiding over the trial, took note of the defence’s objection. Nur Aida said that investigations into Najib began in August 2015 when she was then deputy investigation officer in the case, but that there was a subsequent report lodged in 2018, when she was the IO. In the latter case, Najib was alleged to have received US$681 million from Tanore Finance Corporation through Falcon Private Bank Singapore, purportedly to “buy votes” in preparation for the 2013 general election. In Nur Aida’s investigations she listed the sum of RM3.342 billion which had entered Najib’s account ending 9696 as having come from Prince FaisMELAKA (Jan 2): The Ayer Keroh Sessions Court on Tuesday sentenced a former accounts executive to 24 years in prison after the woman pleaded guilty to six counts of breach of trust and misappropriating funds totalling over RM680,000 four years ago. Tan Siau Ling, 43, entered the plea during two separate proceedings before Judge Mohd Sabri Ismail and Judge Darmafikri Abu Adam. The accused was charged with committing the offences while employed at Hap Yeng Seng Sdn Bhd by transferring money from the company’s United Overseas Bank account into several bank accounts belonging to her and her ex-husband, amounting to RM680,108.13. She was charged with committing the offences at the company premises on Jalan PM 5, Plaza Mahkota Melaka here between May 24, 2019 and Oct 23, 2019. The charges framed under Section 408 of the Penal Code provide imprisonment for up to 14 years with the possibility of whipping and a fine, if convicted. Deputy public prosecutors Muhammad Nazrin Ali Rahim and Rashidah Baharom recommended a suitable punishment as a lesson for both the accused and the community, taking into consideration the losses incurred by the company However, lawyer Nur Atifah Kamal Effendi, representing the accused, urged the court to consider a minimal prison sentence as Tan, a single mother, has expressed remorse and has three school-going children and an ailing mother to support. The court then sentenced Tan to four years in prison for each count and ordered that the sentences run concurrently from the date of arrest on June 20, 2023. BY HAFIZ YATIM & TARANI PALANI theedgemalaysia.com Bernama al Bin Turkey Bin Bandar Al Saud to the tune of RM369,029,514, Ministry of Finance Riyadh RM243,699,926.32, Blackstone Asia Real Estate Partners RM523,389,779.96 and Tanore Finance Corp RM2,081,476,926. She said interest of RM24,208,906.74 had been credited into the account which was opened with a deposit of RM500, and that there had been a cheque returned of RM50,727,850 as well as a reversal of RM50,000,082.50 from the account. The witness also said as for the account ending 1880, it received a sum of RM292,365,208.27, with the amount coming from among others, Vista Equity International Partners RM45,837,485.70 and Blackrock Commodities (Global) Ltd RM4,093,500. Nur Aida said as the investigator she observed and investigated based on documents obtained from the police, 1Malaysia Development Bhd, Bank Negara Malaysia (BNM), financial institutions including Ambank, Price Waterhouse Coopers (PwC), Labuan Financial Services Authority (LFSA), Finance Ministry, the Prime Minister’s Department and foreign administrations like Singapore, Switzerland, Barbados, Hong Kong and Netherlands via the Mutual Assistance in Criminal Matters Act 2002. She added that the Terengganu Investment Authority (TIA) became 1MDB in Sept 2009, and that amendments to three articles in its Memorandum of Articles and Association, led to Najib’s control of 1MDB as he was PM, Finance Minister and chairman of the 1MDB board of advisers. Money raised from IMTN used for PetroSaudi investment Nur Aida testified that a RM5 billion Islamic Medium Term Note (IMTN) was raised from Ambank to develop TIA and that this was eventually used by 1MDB for its joint venture with PetroSaudi International (PSI) following an earlier meeting held in mid-2009. CONTINUES ON PAGE 15 MACC IO tells court Najib used his position to receive RM3.6 bil in gratification Former accounts executive gets 24 years’ jail for CBT
wednesday january 3, 2024 15 The E dge C E O m o rning brief home She said 1MDB wanted an independent evaluation of PSI’s assets as a joint venture company 1MDB-PetroSaudi Ltd was to be formed on a 50%-50% basis, plus 1MDB was interested to up its stake in the joint venture company to 60%. She said a sum of US1 billion was required for the investment in the JV. The sum of US$300 million was paid to the joint venture company but the remaining US$700 million was paid to Good Star Ltd, then disguised as a full affiliate of PSI, which resulted in the full transfer of the US$700 million, Nur Aida added. Prior to the payment, she said 1MDB’s chairman of the board of directorsn, Tan Sri Mohd Bakke Salleh, had said that on Sept 26 just before a special board meeting was to be held over the board’s disagreement with PSI’s conditions, Bakke had received a call from Najib on Jho Low’s phone. In that conversation, Bakke said Najib had told him that the proposal from PSI was important and that it was an important G to G project. Following the conversation, the board agreed to the payment. The witness further said on Oct 3, 2009, at the 1MDB board of directors’ meeting, Bakke voiced his displeasure that 1MDB’s KUALA LUMPUR (Jan 2): The renewal of the Malaysian driving licence and motor vehicle road tax can be carried out through the MyJPJ application from Feb 1, said Transport Minister Anthony Loke Siew Fook. He said the licence renewal via the application will be implemented in phases, with the initial stage only involving private individual Malaysian vehicles. “To facilitate the public to obtain the services of the Road Transport Department (JPJ) digitally, renewal of road tax and the driving licence could be conducted through the MyJPJ application from Feb 1, 2024. “The move is to facilitate the public to obtain JPJ services digitally. The additional functions will help save time and cost, as well as reduce the congestion for physical transactions at JPJ counters,” he said in a media conference after visiting the Selangor JPJ here on Tuesday. He said the reform was based on the readiness of the system and the positive acceptance of the public. Loke said to encourage the use of the Digital Malaysia Driving License (e-LMM), those who choose e-LMM during renewal will enjoy a rebate of RM5. “This rebate will be offered throughRenewal of driving licence, road tax via MyJPJ app from Feb 1, says Loke Bernama from Page 14 Read also: Public can now share digital road tax via MyJPJ app, says Loke out the year, which is from Feb 1 to Dec 31, 2024. This initiative applies to those who choose e-LMM during renewal either through the JPJ counter, mySIKAP portal, MyJPJ application or JPJ business partners such as Pos Malaysia offices and MyEG Services Bhd. “This initiative is only for Malaysian citizens, and does not apply to foreign nationals or holders of long-term permit passes, MyKAS cards and MyPR cards,” he said. He said as of Dec 31, 7.5 million users were using the MyJPJ application, and the number is expected to increase this year. “The initiative announced today (Tuesday) is an effort by the MOT (Ministry of Transport) and JPJ to simplify transactions of LKM and LMM holders, and to further support the best digitisation services for the people. “The MOT and JPJ also appreciate the support from various parties in the implementation of digitisation. I call for the community to be with us to make the digitisation of JPJ a success,” he added. senior management had not followed the board’s directives in relation to the US$700 million payment that had been made to a different account than the joint venture account. “Shahrol Azral informed the board that the directive to transfer the funds came from PSI’s lawyers from White & Case and (as well as) Jho Low’s directive that the funds should be transferred to Good Star then considered an affiliate of PSI. “However, the 1MDB board of directors wanted 1MDB to bring back the US$700 million and (that it be) transferred to the proper channel that is the JVCo. The board further questioned the valuation of US$2.7 billion in PSI’s assets done by valuer Edward L Morse within a short span of eight days, and directed for a third valuation to be done on PSI’s assets,” she said. Disagreement with 1MDB management led to Bakke’s resignation Following the board’s directives, Shahrol Azral and another 1MDB officer went to London to negotiate with PSI the return of the US$700 million. On Oct 10, 2009, Nur Aida said Shahrol Azral tabled the result of that discussion wherein Tarek Obaid who owns PSI had rejected the request as he insisted that PSI wanted to deal through Jho Low only. Tarek also maintained that the US$700 million transfer did not have an impact on 1MDB’s share in the JVCo. Following that visit to London, the witness added that Najib held a meeting with Shahrol Azral to discuss the disagreement by the 1MDB board, but in any event signed the minutes of the meeting prepared by Jho Low earlier without any amendments. “On Oct 19, Bakke resigned as the 1MDB board of directors as he was not satisfied with the 1MDB management and also Najib’s directives which agreed with the 1MDB management without thinking of the consequences. Tan Sri Azlan Mohd Zainol, a fellow 1MDB board member also resigned on Jan 11, 2010,” she said, adding Tan Sri Che Lodin Wok Kamaruddin was appointed to replace Bakke. Throughout the proceedings, Shafee objected to Nur Aida’s testimony as he claimed that it was “jaundiced” in its conclusions, and that it was the court’s task to come to the conclusions. In the current trial, Najib faces four counts of abuse of power and 21 counts of money laundering of RM2.27 billion of 1MDB funds. The trial before Justice Sequerah continues on Friday. Zahid Izzani/The Edge
WEDNESDAY JANUARY 3, 2024 16 THEEDGE CEO MORNING BRIEF WORLD TOKYO (Jan 2): All 379 passengers and crew of a Japan Airlines plane miraculously escaped from a fire following a collision with a Coast Guard aircraft at Tokyo’s Haneda airport on Tuesday, but local media said most of the coast guard plane crew had died. The Coast Guard said the collision involved one of its planes that was headed to Niigata airport on Japan’s west coast to deliver aid to those caught up in a powerful earthquake that struck on New Year’s Day, killing at least 48 people. Five of the six crew of the coast guard aircraft have died, public broadcaster NHK reported. A coast guard spokesperson earlier said five of the crew were unaccounted for but that the captain had escaped. Live footage on public broadcaster NHK showed the Japan Airlines (JAL) Airbus A350 aircraft bursting into flames as it skidded down the tarmac at around 6pm (0900 GMT). It was later overwhelmed by the blaze despite feverish efforts by rescue crews to control the fire. But not before all 367 passengers and 12 crew were evacuated. Footage and images shared on social media showed passengers shouting inside the smoke-filled cabin and running across the tarmac away from an evacuation slide. “I felt a boom like we had hit something and jerked upward the moment we landed,” a passenger on the JAL flight told Kyodo news agency. “I saw sparks outside the window and the cabin filled with gas and smoke.” A spokesperson at Japan Airlines said its aircraft had departed from Shin-Chitose airport on the mountainous northern island of Hokkaido. The collision occurred shortly after landing. Japanese Prime Minister Fumio Kishida instructed relevant agencies to coordinate to assess the damage swiftly and provide information to the public, according to his office. All passengers, crew escape blaze on Japan Airlines plane after Tokyo airport collision WAJIMA, Japan (Jan 2): At least 48 people were killed after a powerful earthquake hit Japan on New Year’s Day, with rescue teams struggling on Tuesday to reach isolated areas where buildings had been toppled, roads wrecked and power cut to tens of thousands of homes. The quake with a preliminary magnitude of 7.6 struck on Monday afternoon, prompting people in coastal areas to flee to higher ground as tsunami waves hit Japan’s western seaboard, sweeping cars and houses into the water. A 3,000-strong rescue crew of army personnel, firefighters and police officers have been sent to the quake site on the Noto peninsula in the Ishikawa Prefecture. “The search and rescue of those impacted by the quake is a battle against time,” Prime Minister Fumio Kishida said during an emergency meeting on Tuesday, donning a blue outfit commonly worn by officials during disaster relief operations. Kishida said rescuers were finding it very difficult to access the northern tip of the Noto peninsula, where helicopter surveys had discovered many fires and widespread damage to buildings and infrastructure. There are around 120 cases of people awaiting rescue, his government spokesperson said. Many rail services and flights into the area have been suspended. More than 500 people were stranded at Noto’s airport, which has closed due to cracks in its runway and access road and damage to its terminal building. In Suzu, a coastal town of just over 5,000 households near the quake’s epicentre, up to 1,000 houses may have been destroyed, according to its mayor Masuhiro Izumiya. “The situation is catastrophic,” he said. Authorities have confirmed 48 fatalities, all in the Ishikawa Pefecture, making it Japan’s deadliest earthquake since at least 2016, when a 7.3 magnitude one struck in Kumamoto on the southern island of Japan, killing more than 220 people. Many of those killed are in Wajima, a city on the remote northern tip of the Noto peninsula. Scores more have been injured, and authorities were battling blazes in several cities on Tuesday, and hauling people from collapsed buildings. “I’ve never experienced a quake that powerful,” said Wajima resident Shoichi Kobayashi, 71, who was at home having a celebratory New Year’s meal with his wife and son when the quake struck, sending furniture flying across the dining room. “Even the aftershocks made it difficult to stand up straight,” he said, adding that his family were sleeping in their car, because they could not return to their badly damaged home. Around 200 tremors have been detected since the quake first hit on Monday, according to the Japan Meteorological Agency, which warned more strong shocks could hit in the coming days. Read the full story Japan’s quake toll nears 50 as rescuers battle to find survivors BY KIYOSHI TAKENAKA, SAKURA MURAKAMI & KANTARO KOMIYA Reuters BY DANIEL LEUSSINK Reuters A collapsed building caused by the earthquake in Wajima, Japan. KYODO VIA REUTERS
WEDNESDAY JANUARY 3, 2024 17 THEEDGE CEO MORNING BRIEF WORLD SEOUL (Jan 2): South Korean opposition Democratic Party leader Lee Jae-myung was stabbed in the neck during a visit to the southern city of Busan on Tuesday and was airlifted to Seoul after receiving emergency treatment, party and emergency officials said. The suspect, wearing a paper crown with Lee’s name on it, approached and asked for an autograph as Lee spoke among a throng of supporters and reporters. He then lunged forward and attacked him, video footage showed. Lee, who narrowly lost the 2022 presidential election, underwent surgery at Seoul National University Hospital and was in an intensive care unit recovering and conscious, party spokesman Kwon Chil-seung told reporters. He condemned the attack as “political terror”. Kwon said earlier medical staff suspected damage to a jugular vein. The attack by the assailant unfolded quickly while Lee was touring the site of a proposed airport. Television footage and a video clip on the social media platform X showed the man lunging with his arm stretched out and stabbing Lee in the neck, the force of the attack pushing Lee back into the crowd behind him. Lee grimaced and collapsed. News photographs showed Lee lying on the ground with his eyes closed and bleeding, and people pressing a handkerchief against his neck. A Busan police official, Son Je-han, told a news briefing the assailant was born in 1957 and used an 18cm knife bought online. He did not identify the suspect and said the motive was being investigated. Police will seek a charge of attempted murder, media said. Jin Jeong-hwa, a Lee supporter who was at the scene livestreaming the event, told Reuters there were more than two dozen police officers present. The assailant was quickly subdued by party officials and police officers, the footage showed. Read the full story Read also: Disputes over China ties sour Taiwan election campaign South Korea opposition chief stabbed in neck, in intensive care HONG KONG (Jan 2): Hong Kong tycoon and pro-democracy advocate Jimmy Lai pleaded not guilty on Tuesday in his landmark trial, where he is accused of endangering China’s national security, as prosecutors laid out details of what they said was collusion with foreign forces. Lai, a leading critic of the Chinese Communist Party, faces two counts of conspiracy to collude with foreign forces — including calling for sanctions against Hong Kong and Chinese officials — under a China-imposed national security law. “Not guilty,” Lai said three times as each charge was read, appearing calm as he sat in a glass dock surrounded by guards and a court filled with supporters and foreign diplomats. Lai, 76, the founder of now-shuttered pro-democracy newspaper Apple Daily, is also charged with conspiracy to publish seditious publications. Western democracies, including the US, Britain and the European Union, are watching closely, with the trial looming as a diplomatic flashpoint and a key test for Hong Kong’s judicial independence and freedoms under the sweeping national security law China imposed in 2020. After marathon legal proceedings stretching over three years since Lai was Hong Kong tycoon Lai pleads not guilty in landmark security trial arrested, the prosecution outlined for the first time in court key details of their case, including meetings with senior figures in the former administration of US President Donald Trump, which they said were evidence he colluded with foreign forces. US connections Prosecutor Anthony Chau told the three high court judges that Lai was “a radical figure” who conspired with others to bring “hatred and stir up opposition” against Hong Kong and Chinese authorities. In a chart displayed in court, a picture of Lai was shown alongside images of Trump, vice president Mike Pence and former secretary of state Mike Pompeo. Others, including former Speaker of the House Nancy Pelosi were also shown, as well as individuals in Taiwan. “Under the guise of fighting for freedom and democracy”, Chau said, Lai had since June 2019 made requests for foreign countries, in particular the US, to impose sanctions against the Chinese and Hong Kong governments. Washington imposed several rounds of sanctions on Hong Kong and Chinese officials, including Hong Kong Chief Executive John Lee, after a China-imposed national security law was enacted in June 2020. BY JESSIE PANG Reuters BY JU-MIN PARK & HYONHEE SHIN Reuters BLOOMBERG REUTERS South Korea's opposition party leader Lee Jae-myung falls after being attacked by an unidentified man during his visit to Busan, South Korea on Jan 2 in this picture provided by Yonhap.
WEDNESDAY JANUARY 3, 2024 18 THEEDGE CEO MORNING BRIEF WORLD Maersk to decide on Red Sea route on Tuesday after attack Oil prices jump on disruption fears after latest Red Sea attack Fighting between Hamas and Israel rages on, Palestinian death toll passes 22,000 BY NOAH BROWNING Reuters BY DAN WILLIAMS, NIDAL AL-MUGHRABI & ARAFAT BARBAKH Reuters BY TERJE SOLSVIK Reuters LONDON (Jan 2): Oil prices rose more than 2% in the first session of the New Year, boosted by potential disruption to Middle East supply after the latest attack on a container ship in the Red Sea and by Chinese demand hopes. Brent crude rose US$1.72, or 2.2%, to US$78.76 a barrel by 1115 GMT. US West Texas Intermediate crude was up US$1.57, or 2.2%, at US$73.22. A Reuters survey of economists and analysts predicted that Brent crude would average US$82.56 a barrel this year, up slightly from the 2023 average of US$82.17, with weak global growth expected to cap demand. Geopolitical tensions, however, could provide price support. US helicopters on Sunday repelled an attack by Iran-backed Houthi forces on a Maersk container vessel in the Red Sea, sinking three Houthi vessels and killing 10 of the militants, fuelling risks of the Israel-Hamas war becoming a wider conflict. “The oil price may be affected by the escalation... in the Red Sea over the weekend and the peak demand season during China’s spring festival,” said Shanghai-based CMC Markets analyst Leon Li, referring to the Lunar New Year holiday in early February. A wider conflict could close crucial waterways for oil transportation. At least four tankers carrying diesel and jet fuel from the Middle East and India to Europe are sailing around Africa to avoid the Red Sea, ship tracking data shows. In China, investor expectations of fresh economic stimulus measures rose after manufacturing activity shrank for a third month in December, government data showed on Sunday. Any such stimulus for economic growth could boost oil demand and support crude prices. OSLO (Jan 2): Denmark’s Maersk will decide on Tuesday whether to resume sending vessels through the Suez Canal via the Red Sea or redirect them around Africa, following a weekend attack on one of its ships, a company spokesperson said. The container shipping giant on Sunday paused all Red Sea sailings for 48 hours, following attempts by Yemen-based Houthi militants to board the Maersk Hangzhou. US military helicopters repelled the assault and killed 10 of the attackers. Maersk had more than 30 container vessels set to sail through Suez via the Red Sea, an advisory on Monday showed, while 17 other voyages were put on hold. A decision will be taken on Tuesday regarding how to proceed, the company spokesperson said. The Hangzhou, which was hit by an unknown object during the attack, was able to continue on its way, with LSEG shipping data showing the vessel now close to the Suez Canal. The Iranian-backed Houthis, who control parts of Yemen after years of war, started attacking international shipping in November in support for Palestinian Islamist group Hamas in its war with Israel in the Gaza Strip. Major shipping groups, including Maersk and Hapag-Lloyd, last month stopped using Red Sea routes, instead taking the longer journey around southern Africa via the Cape of Good Hope. After the deployment of a US-led military operation to protect ships, however, Maersk on Dec 24 announced it would resume using the Red Sea. Rival Hapag-Lloyd on Friday said it would continue to avoid the Red Sea but like Maersk, would update its plans on Tuesday. According to Maersk, its alliance partner Mediterranean Shipping Company (MSC) was continuing to divert its vessels via the Cape of Good Hope. MSC did not immediately respond to a request for comment. The Suez Canal is used by roughly onethird of global container ship cargo. Re-directing ships around the southern tip of Africa is expected to cost up to US$1 million in extra in fuel for every round trip between Asia and Northern Europe. JERUSALEM/CAIRO/GAZA (Jan 2): Israel said on Tuesday that its troops had killed dozens of militants in the north of the Gaza Strip in the past day, while its aircraft and tanks stepped up strikes in the south of the Palestinian enclave. Residents said heavy fighting was also raging in central areas, citing shelling by Israeli tanks of parts of the Al-Bureij refugee camp. Some 207 Palestinians were killed and 338 were wounded in the past 24 hours, the Gaza health ministry said, bringing the total recorded Palestinian death toll to more than 22,000 in nearly three months of warfare in the Hamas-ruled enclave. The latest fighting took place after Israel announced plans to pull back some troops, signalling a new phase in the war against Hamas amid global concern over the plight of Gaza residents. Israeli bombardments have reduced much of the territory to rubble and engulfed its 2.3 million residents in a humanitarian disaster, in which many have been left destitute and threatened by famine due to a lack of food supplies. Israeli officials say the offensive has many months to run. In its daily briefing, the Israeli military said that in the past day, its forces had targeted militants in Gaza City in the north of the enclave and in unspecified locations along the Mediterranean coast. REUTERS
WEDNESDAY JANUARY 3, 2024 19 THEEDGE CEO MORNING BRIEF WORLD Alibaba Group says repurchased US$9.5 bil worth shares in 2023 China stocks see worst start to year since 2019 on economic woes South Korean banks and builders slide on JPMorgan risk warning Bloomberg Reuters (Jan 2): Chinese stocks recorded their worst start to a year since 2019, as weak manufacturing and home sales data reinforced investor concerns about the economic outlook. The CSI 300 Index ended 1.3% lower on Tuesday to halt a three-day gain while the Hang Seng China Enterprises Index declined 1.7%. It was the worst first trading day of the year since 2019 for both gauges. Markets in Hong Kong and the mainland were shut on Monday for the new year holiday. Sentiment took a hit after reports on Sunday showed China’s factory activity shrank in December to the lowest level in six months and a slide in home sales accelerated. The weak data may fuel expectations for more stimulus from authorities after leaders vowed to maintain a progrowth stance in 2024. “The performance of PMI continued to be weak and the wait-and-see sentiment toward the introduction of mid- to longterm deepening reform policies has intensified,” said Shen Meng, a director with Beijing-based Chanson & Co. “Therefore, there is still more uncertainty as to whether the momentum at the end of last year can be sustained.” Chinese stocks had gained in the last few trading sessions of 2023, helped by year-end position adjustments and a jump in foreign buying. But the CSI 300 Index still ended 2023 with an unprecedented third year of losses after annual foreign purchases of the nation’s equities shrank to the least on record. Global funds sold a net 5.3 billion yuan (RM3.4 billion) of onshore equities on Tuesday, the biggest one-day outflow since Dec 13. But some including Matthews Asia see the weakness as a buying opportunity. Almost a third of 417 respondents in Bloomberg’s latest Markets Live Pulse survey said they will increase their China investments over the next 12 months, compared with just 19% in a similar August poll. “China is a market that is out of favor so that enables us to buy stocks relatively cheap,” said Vivek Tanneeru, a portfolio manager for Matthews Asia in San Francisco. Tanneeru has overweight positions in Chinese equities in the two emerging markets portfolios he oversees. (Jan 2): China’s Alibaba Group said on Tuesday it had repurchased a total of 897.9 million of its shares for US$9.5 billion during 2023. The shares were bought in both the US and Hong Kong stock markets, the company said in a filing. The e-commerce giant said the remaining amount the company’s Board had authorized for its share repurchase program, which is effective through March 2025, was US$11.7 billion. “Our share repurchase program resulted in a net reduction of 3.3% in our outstanding shares in the last 12 months after accounting for shares issued under our ESOP (employee stock ownership plan),” the company said. Alibaba had 20 billon outstanding shares as of Dec 31, compared with 29.7 billion at the end of 2022. BY JIYEUN LEE, HEEJIN KIM & WHANWOONG CHOI Bloomberg (Jan 2): Jitters about South Korea’s credit market extended into Tuesday, with bank and developer shares sliding and JPMorgan Chase & Co warning of insolvency risks for financial firms and developers due to real estate exposure. Leading the drop among lenders was Shinhan Financial Group Co, which recorded its biggest intra-day decline in a year. Shares of builders including Samsung Engineering Co Ltd also retreated. Shinsegae Engineering & Construction Co bonds dropped by the most since October, according to Bloomberg-compiled data. Investors are on edge after builder Taeyoung Engineering & Construction last week announced plans to reschedule its debt, reigniting concerns about a 2022 credit crunch triggered by the default of a property developer on debt for project financing. Bank of Korea governor Rhee Chang-yong warned in a New Year’s speech of the risk of financial instability due to the central bank’s restrictive monetary policy. “Given a prolonged high rate interest environment, we expect that some midto-small sized non-bank lenders and/or developers are likely to go insolvent,” JPMorgan analyst Jihyun Cho wrote in a note. “Asset quality issue remains the key agenda item for the financial industry as non-bank lenders may face more challenging situations.” Taeyoung’s trouble is the result of a slump in South Korea’s real estate market coupled with high interest rates and some lenders’ over-reliance on property-related loans as a source of profit. Although Taeyoung was particularly exposed to the project financing sector, according to officials, it’s a toxic mix that may cause trouble for others in the sector as well. Read the full story REUTERS
WEDNESDAY JANUARY 3, 2024 20 THEEDGE CEO MORNING BRIEF WORLD (Jan 2): US stocks are likely to take a breather from their rapid gains before a potential fresh catalyst arrives in the form of the next earnings season, according to Oppenheimer Asset Management. Investors itching to see the S&P 500 build on the 11% advance in the final three months of last year may not have long to wait, with US companies due to start reporting results at the end of next week. “It’s not uncommon for markets to pause to digest a bull run of the magnitude experienced in the fourth quarter just ended,” Chief Investment Strategist John Stoltzfus wrote in a note. “In fact it would appear to us to make good sense for markets to pause considering the run-up in stock prices” from their October lows through December, he said. A stronger-than-expected economy and expectations that the Federal Reserve would pivot to monetary easing propelled a 24% rally in the S&P 500 in 2023. Stoltzfus was among few to correctly predict the US benchmark would soar in 2023 and he’s staying optimistic, tipping the index to hit 5,200 before 2024 is out. That ties with Fundstrat’s Tom Lee for the most bullish forecast among strategists tracked by Bloomberg. The gauge is a few points shy of its record closing high and a 9% advance to Stoltzfus’s target would put it well beyond that level. “A close above the prior high could provide a boost in sentiment that could move stocks higher near-term,” the strategist said. The focus will soon shift to the fourth-quarter earnings season, which officially kicks off on Jan 12 when big banks including JPMorgan Chase & Co report. Investors will likely set a high bar after stocks surged last year. But even so, Stoltzfus sees markets grinding higher before the year ends. “Our expectations are for further upside in stock prices this year supported by the improvements in fundamentals,” he said. Top Wall Street bull says US stocks to pause briefly after run (Jan 2): Bitcoin surpassed US$45,000 (RM207,203) for the first time in nearly two years as anticipation of an approval of an exchange-traded fund investing directly in the biggest token intensified. The cryptocurrency jumped as much as 5.2% to its highest level since April 2022 and traded at US$45,443 as of 7am New York time. Other tokens also advanced with Ether, the second biggest, rising as much as 4.1%. Bitcoin has risen almost 20% since the start of December as a Jan. 10 deadline for the US Securities and Exchange Commission to give its blessing for a spot ETF Bitcoin draws closer. There’s a fear of missing out among some traders in the US and Europe ahead of the looming approval and investors have started “buying on January 1, first thing New Year’s morning,” said Hayden Hughes, co-founder of social-trading platform Alpha Impact. ‘Nerves of steel’ Options traders had been betting on bitcoin hitting US$50,000, riding on the spot ETF optimism. A major correction is unlikely given the broader bullish sentiment and the upcoming halving, said Cici Lu McCalman, founder of blockchain adviser Venn Link Partners, referring to a process that cuts the quantity of Bitcoin that miners receive per block reward in half. “I think traders would need nerves of steel to short BTC,” she said. The halving — sometimes referred to as halvening — is planned for April and happens once every four years or so. The coin hit records after each of the last three halvings. Bitcoin’s near 160% rebound last year partially repaired some of the damage caused by a precipitous 2022 crash that reverberated around the crypto industry. The token outperformed global stocks and gold over the period but remains below its 2021 pandemic-era record of almost US$69,000. Shares of so-called crypto companies also rallied ahead of normal trading hours in New York. Bitcoin proxy MicroStrategy rose about 7.8%, miner Marathon Digital jumped 11% and crypto exchange Coinbase Global gained 4.1%. (Jan 2): Investor optimism that the Federal Reserve (Fed) will start cutting interest rates is breathing new life into the market for junk debt, providing timely relief to the lowest-rated companies and likely capping the rate of defaults in 2024. As the US central bank started to raise rates in 2022 and worries about defaults grew, companies rated below investment grade saw tepid demand from investors for their loans and bonds. Many such companies turned to roundabout ways to raise money to get ahead of a US$300 billion (RM1.3 trillion) wall of bond and loan maturities in the next two years. In the last few months, however, yields have fallen as investors bet the Fed, emboldened by its progress in slowing a surge in prices that pushed inflation to 40-year highs last year, will soon start cutting rates. Markets are now pricing the US central bank’s key policy rate to fall as much as 1.5 percentage points below the current 5.25%-5.50% range by the end of next year. Expectations of such a pivot have led to a resurgence in demand for high-yielding debt. Junk bond spreads, or the premium investors charge over US Treasuries for taking on the risk, have on average tightened 38 basis points since September to 343 basis points, the lowest level since April 5, 2022, according to the ICE BAML index. In December, insurance brokerage USI Inc, a company rated deep in the junk territory, became the first borrower in its category to tap the primary markets since April, according to data provider Informa Global Markets. “While it is possible defaults may increase slightly toward historical averages, a lot of this appears to be priced into the market today,” said Manuel Hayes, senior portfolio manager at Insight Investment. Read the full story Bitcoin tops US$45,000 for first time in nearly two years US Fed pivot may cap junk bond defaults, but risks remain BY SUVASHREE GHOSH Bloomberg BY SHANKAR RAMAKRISHNAN Reuters BY FARAH ELBAHRAWY Bloomberg
WEDNESDAY JANUARY 3, 2024 21 THEEDGE CEO MORNING BRIEF WORLD Thailand approves tax cuts on booze and night clubs to boost tourism BANGKOK (Jan 2): Thailand’s Cabinet has approved a tax cut on alcoholic beverages and entertainment venues to boost tourism, a government spokesperson said on Tuesday. Taxes on wine will be reduced from 10% to 5% and on spirits from 10% to zero, Chai Wacharonke told reporters, adding that excise tax on entertainment venues will be halved from 10% to 5%. The tax measures will expire at the end of this year, he said. The announcement comes after authorities in November extended opening hours for entertainment venues by two hours to 4am for night-time revellers and tourists. Tax revenue losses would be offset by additional tourist receipts, Finance Ministry permanent secretary Lavaron Sangsnit said in a separate briefing. Tourism is a key driver of Southeast Asia’s second-largest economy. Last year, Thailand reached its target of 28 million tourists, generating 1.2 trillion baht, government data showed. In 2024, it is targeting more than 34 million tourist arrivals, Lavaron said — Reuters NEWS IN BRIEF Thailand, China to waive visas for each other’s citizens from March BANGKOK/BEIJING (Jan 2): Thailand and China will permanently waive visa requirements for each other’s citizens from March, Thai Prime Minister Srettha Thavisin said on Tuesday. Southeast Asia’s second-largest economy, which relies heavily on tourism, in September waived entry requirements for Chinese tourists until February this year. “This will upgrade the relationship between the two countries,” Srettha told reporters. China’s foreign ministry said both countries were enhancing people-to-people exchanges by mutually exempting the visa requirements. “Competent authorities of both sides are communicating closely on the matter and we are looking forward to the implementation of the relevant arrangement,” ministry spokesperson Wang Wenbin said at a regular briefing. In 2023, Thailand welcomed 28 million foreign tourists, slightly above its target, generating 1.2 trillion baht (US$34.93 billion) of revenue, government data showed. Of that, the top source market was Malaysia with 4.5 million visitors, followed by 3.5 million arrivals from China. That compared with a pre-Covid record of 39 million arrivals, with 11 million from China. — Reuters Vietnam central bank sets 2024 credit growth cap for banking system at 15% HANOI (Jan 2): Vietnam’s central bank has set a credit growth cap of 15% for the local banking system for this year, it said on Tuesday. The cap can be adjusted depending on the situation as it develops, the State Bank of Vietnam (SBV) said in a statement. Vietnam’s economic growth moves in tandem with credit growth managed by the central bank, which sets annual targets for banks, with the aim of controlling lending and managing growth. Banks’ lending as of December 27 had grown 12.26% from the end of 2022, below the central bank’s cap of 14%-15%, SBV said in the statement. — Reuters Eight new airlines set to start services in Thailand this year as leisure travel rebounds (Jan 2): Eight new Thai airlines are set to start operations as the tourism-reliant nation expects a sustained recovery in leisure travel to draw about 35 million foreign visitors this year. Really Cool Airlines, which plans to offer scheduled services on medium-to-long haul international routes, is among the companies which have won Transport Minister Suriya Jungrungreangkit’s approval for operator licenses, according to the Civil Aviation Authority of Thailand. The carriers have also been permitted to import a total of 60 aircraft, it said in a statement. The new operators will compete with carriers including Thai Airways International Pcl, which is firming up an order for as many as 80 jets from Boeing Co., and Asia Aviation Pcl, for a share of the more than 130 million passengers expected to travel through the nation’s main six airports this year. Foreign tourist arrivals more than doubled last year to 28 million after Prime Minister Srettha Thavisin’s administration waived visa requirements for travelers from its key markets like China and India. Really Cool Airlines, founded by Patee Sarasin, a former chief executive of budget carrier Nok Airlines Pcl, will commence chartered flight services in March. It plans to initially operate flights to Japan and aims to serve additional Asian destinations, such as Hong Kong, Singapore and Shanghai, during the first two years, Patee said in November. Other airlines planning to begin operations this year include Pattaya Airways, Asian Aerospace Service, Avanti Air Sarter, Siam Seaplane and Asia Atlantic Airlines, The Nation newspaper reported. — Bloomberg BLOOMBERG REUTERS PEXELS
WEDNESDAY JANUARY 3, 2024 22 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE (Jan 2): The Singapore economy expanded by 2.8% year-on-year in the fourth quarter of 2023 (4Q2023), faster than the 1.0% growth in 3Q2023, based on advance estimates released by the Ministry of Trade and Industry on Tuesday. On a quarter-on-quarter basis, the economy grew by 1.7%, extending the 1.3% in 3Q2023. For the whole of 2023, Singapore’s economy grew by 1.2%, which is within the 0.5% to 1.5% range forecasted by the Monetary Authority of Singapore (MAS). In his New Year message for 2024 delivered on Dec 31, 2023, Prime Minister Lee Hsien Loong revealed the year’s GDP growth, adding that the MTI expects the republic’s GDP to grow by 1% to 3%. Inflation is also expected to come down further although this will depend on the external environment. In 4Q2023, the manufacturing sector expanded by 3.2% y-o-y, turning around from the 4.7% contraction in the previous quarter. The sector’s growth was attributed to output expansions across all clusters except the precision engineering cluster. The construction sector expanded by 9.1% y-o-y, outpacing the 6.2% growth in the 3Q2023 as public and private sector construction output increased. Among the services sectors, the wholesale & retail trade and transportation & storage sectors collectively grew by 1.5 y-o-y in the 4Q2023, extending the 1.3% growth in the 3Q2023. All sectors within the group recorded expansions during the quarter. Growth in the wholesale & retail trade sector was supported by both wholesale and retail trade activities. The expansion of the transportation & storage sector was partly due to the air transport segment, which grew on the back of the continSingapore’s GDP grew by 2.8% in 4Q, 1.2% in 2023 (Jan 2): The Singapore dollar beat out all its Asian counterparts in each of the past two years. The chance of leading the region for a third straight year rests with the central bank. The currency gained 1.5% in 2023 as the Monetary Authority of Singapore (MAS) kept its policy band with an appreciating bias in both its April and October meetings to counter inflation. Economists predict the MAS will maintain that setting again this year, with some even anticipating further tightening if inflation proves intractable. “While we continue to expect the MAS to refrain from adjusting foreign exchange policy through 2025, the risk of a 50-basis-point slope increase has risen,” Brian Tan, a senior regional Asean economist at Barclays Bank plc in Singapore, wrote in a client note last week, citing core inflation that’s “proving to be stickier than its historical average”. While most central banks manage their economies through setting interest rates, the MAS does so by influencing the local currency. It determines the slope, width and midpoint of a policy band for the Singapore dollar’s nominal effective exchange rate, or S$NEER, which measures the local dollar against a basket of currencies of its major trading partners. Inflation has been on a downward trend since early in 2023, with the core consumer price index gauge favoured by the MAS Singapore dollar has chance of three-peat in inflation fight BY DAVID FINNERTY Bloomberg BY FELICIA TAN theedgesingapore.com dropping to 3.2% in November, from as high as 5.5% in February. Still, that remained well above the five-year average of 2%, providing a reason for the central bank to keep its strengthening bias for the currency. Another positive for the Singapore dollar may be the underlying strength of the economy. The nation’s gross domestic product expanded 2.8% in the fourth quarter, easily beating the median economist forecast of 1.8%, government data showed on Tuesday. ‘Middling currency’ Even if MAS decides to keep its its appreciative settings for the currency, that doesn’t guarantee the Singapore dollar will once again top the Asian rankings. “With the S$NEER nudging up against the top end of the policy bands, the scope for sustained Singapore dollar outperformance is greatly diminished,” said Vishnu Varathan, the head of economics and strategy at Mizuho Bank Ltd in Singapore. The local dollar “is more likely than not to be a middling currency”, he said. The MAS did make one change in its October gathering, doubling the number of meetings each year to four. That means traders will get their next insight into the central bank’s policy later in January, instead of waiting all the way until April, as was the case in previous years. ued recovery in air passengers handled at Changi Airport. The group of sectors comprising the information & communications, finance & insurance and professional services sectors grew by 3.9% y-o-y in the 4Q2023, extending the 2.5% growth in the 3Q2023. All sectors within the group expanded during the quarter. Growth in the information & communications sector was led by the IT & information services segment while growth in the professional services sector was mainly driven by the other professional, scientific & technical services segment. Growth in the finance sector was primarily supported by activities auxiliary to financial services, which include payment processing activities. The rest of the services sectors, which covers accommodation & food services, real estate, administrative & support services and other services sectors, grew by 2.0% y-o-y in the 4Q2023, moderating from the 3.9% growth in the 3Q2023. The accommodation, real estate and other services sectors recorded expansions during the quarter. Even if MAS decides to keep its its appreciative settings for the currency, that doesn’t guarantee the Singapore dollar will once again top the Asian rankings. BLOOMBERG
WEDNESDAY JANUARY 3, 2024 23 THEEDGE CEO MORNING BRIEF WORLD (Jan 2): Indonesia’s equity benchmark closed at a record high on Tuesday on optimism that the nation’s central bank is done with rate hikes and incumbent President Joko Widodo’s policies would be preserved by his successor in an upcoming election. The Jakarta Composite Index advanced 0.7% to surpass its previous all-time high of 7,318.016 hit in September 2022. Top gainers included miner PT Ancora Indonesia Resources Tbk and media company PT Era Media Sejahtera Tbk, both up more than 30% on Tuesday. The Indonesian measure gained more than 6% last year, buoyed by renewables and banking shares, trailing only Vietnam’s stock gauge among Southeast Asian benchmarks. Key presidential candidates’ promises to uphold current government policies ahead of the Feb 14 elections are adding to investor optimism over Southeast Asia’s biggest economy. Meanwhile, the nation’s central bank has signaled that it’s done with tightening, and the current government has pledged to step up spending. Indonesian stocks rise to record high on economic hopes JAKARTA (Jan 2): Indonesia has reduced its 2023 budget deficit significantly to 347.6 trillion rupiah (RM103.4 billion), equivalent to 1.65% of gross domestic product (GDP) based on unaudited figures, its finance minister said on Tuesday. As a percentage to GDP, the deficit was the slimmest since 2011. In nominal terms, it was significantly smaller than the government’s original 2023 fiscal deficit plan of 598.2 trillion rupiah, said Sri Mulyani Indrawati. Indonesia’s fiscal deficit in 2022 stood at 2.35% of GDP. The government plans to spend US$216 billion this year, with a fiscal deficit oulook of 2.29% of GDP. Total spending last year reached 3,121.9 trillion rupiah, 0.8% up from 2022. Total revenues stood at 2,774.3 trillion rupiah, above target and representing a 5.3% gain from the previous year. “The positive performance of the 2023 budget will be a good foundation (Jan 2): The Philippine Stock Exchange (PSE) expects the number of initial public offerings to double in 2024, after a sluggish year that saw more delistings than debuts. The bourse sees six companies going public this year starting with Citicore Renewable Energy Corp, President Ramon Monzon said in a statement. The exchange recorded three IPOs last year — far below its target of 14 — while four companies voluntarily delisted. The PSE forecasts 175 billion pesos (US$3.16 billion or RM14.51 billion) worth of capital to be raised through the exchange, around 40 billion pesos of which will come from IPOs, Monzon said. Capital raised amounted to 140.95 billion pesos last year, up 27.8% from 2022. “The expected improvement in macroeconomic indicators are poised to drive market conditions in 2024,” Monzon said, citing the growing domestic economy and slowing inflation. Manila’s benchmark index may reach a range of 6,800 to 8,300 points, Monzon said, citing analysts’ projections. The index settled at 6,450.04 last year, down 1.8% from 2022. The outlook comes on the back of expected rate cuts by the US and Philippine central banks, and increased infrastructure spending, he said. To boost trading activity, Monzon said the PSE will push for regulatory reforms to cut the stock transaction tax to 0.1% from 0.6%, and the dividend tax on non-residents to 10% from 25%. The bourse also plans to pursue initiatives such as lowering the minimum investment to buy stocks, algorithmic trading and volume-weighted average price or VWAP trading, according to Monzon. for 2024, to guard the economy in 2024 against political cycle and geopolitics,” Sri Mulyani said, referring to Indonesia’s general elections due in February and rising geopolitical tensions in other countries. Indonesia has been trying to cut its fiscal deficit to navigate rising borrowing costs globally and better manage its debt after large expenditure during the Covid-19 pandemic. The small deficit in 2023 came even as economic activity in Indonesia slowed with its exports shrinking amid falling commodity prices and weakening global trade. Growth in Southeast Asia’s largest economy likely decelerated to around 5% in 2023 from 5.3% in the year earlier, Sri Mulyani said, predicting growth of 5.2% in 2024. Last year was also the first year since 2012 when the government booked a primary surplus, Sri Mulyani said, referring to the fiscal balance excluding net interest payments on public debt. For 2024, the government plans to use 51.38 trillion rupiah of its accumulated cash to cover the budget deficit and reduce debt issuance, said Suminto Sastrosuwito, the ministry’s head of budget financing, adding the figure would evaluated based on needs. Indonesia books smallest fiscal deficit in 12 years in 2023 Philippine Stock Exchange expects to double IPOs in 2024 BY STEFANNO SULAIMAN & GAYATRI SUROYO Reuters BY CLIFF VENZON Bloomberg BY ABHISHEK VISHNOI Bloomberg Read also: Indonesia’s Dec inflation eases more than expected BLOOMBERG
WEDNESDAY JANUARY 3, 2024 24 THEEDGE CEO MORNING BRIEF WORLD (Jan 2): Tesla on Tuesday reported fourth-quarter deliveries ahead of analysts’ estimates after a push to deliver more Model 3 electric cars before some variants of the compact sedan lose federal tax credits in the New Year under the Inflation Reduction Act (IRA). Tesla, the world’s most valuable automaker, delivered a record number of vehicles in the fourth quarter, helping the company hit its 2023 target of 1.8 million. The company handed 484,507 vehicles in the last three months of the year, compared with estimates of 473,253 units, according to 14 analysts polled by LSEG. Fourth-quarter deliveries were about 11% higher than the third quarter, during which upgrades to assembly lines to make the updated Model 3 mass-market sedan hurt some production. Tesla delivered 461,538 Model 3 cars and Model Y sports utility vehicles, while it handed about 23,000 units of its other models. The end of the tax incentives on some models were expected to bring sales forward into the fourth quarter, weighing on deliveries this year, analysts had said. The rear-wheel drive and long-range variants of Tesla’s Model 3 compact sedan no longer have federal tax credits of US$7,500 (RM34,519) this year as updated requirements on battery material sourcing kick in, under the IRA. Tesla beats fourth-quarter delivery estimates, surpasses 2023 target (Jan 2): HSBC Holdings plc is set to debut an international payment app aimed at directly challenging the dominance of financial technology (fintech) firms like Revolut and Wise plc that have gathered tens of millions of retail customers by offering cheap foreign exchange (forex). Zing will initially be offered in the UK, but Europe’s largest bank is planning to roll out the service in other places in the coming months as it looks to grab a share of the fast-growing market servicing affluent consumers. The app will be available on Apple Inc’s App Store and Alphabet Inc’s Google Play platform within days, and will be open to non-HSBC customers as the bank prepares to “attack” the worldwide retail payment market, according to Nuno Matos, the chief executive officer of the lender’s global wealth and personal banking business. Matos said it would take about three minutes for a new user to sign up. BENGALURU (Jan 2): India’s Vodafone Idea is not in talks to tie up with billionaire Elon Musk’s satellite internet company Starlink, the telecom operator said on Tuesday, dashing hopes of a revival in the debt-ridden company that had sent its stock soaring. The clarification came after Vodafone Ideas’ stock surged in the past two sessions on what business magazine BusinessWorld said were “markets betting” that Musk was looking to buy a stake in the company to help Starlink enter India. “We would like to submit that the company is not in any such discussion with the named party. We are not aware of the basis of the said news item,” Vodafone Idea said in a statement on Tuesday, a day after the Bombay Stock Exchange, where its stock is listed, asked for a clarification on the report. The BusinessWorld report was published on Friday after Vodafone Idea’s shares surged 21%. The stock jumped another 6% on Monday, rounding out its busiest sessions in about two years. However, the stock fell more than 5% in heavy trading on Tuesday after the company’s clarification. Starlink, Musk and SpaceX — Musk’s rocket company that owns Starlink — did not immediately respond to Reuters’ requests for comment. “Zing has a global ambition,” Matos said in an interview. “We want to establish ourselves as a global platform for international payments, which ties perfectly with our international payment strategy for HSBC, and you should see us very soon in Asia, in the Middle East and in the European markets.” The move shows how some global financial giants are seeking to compete against a slew of start-ups that have rapidly expanded over the past decade by offering services ranging from cross-border payments to savings accounts and investing products on mobile devices. Shares in Wise, which got listed in London in 2021, surged more than 50% last year. Revolut, with over 26 million users, expects 2023 revenue to jump almost 70% to US$2 billion (RM9.2 billion). HSBC already has a product called Global Money that offers existing customers fee-free, currency service. Since its debut in 2020, the service has attracted hundreds of thousands of customers and processed transactions worth about US$11 billion in 2022. Matos expects Zing to attract users who might then consider doing more of their banking with HSBC as part of a drive that started last year to become the leading financial institution for internationally mobile customers. “It’s a bold move for us,” said Matos. “This is HSBC playing outside of its traditional perimeter of customers, and really attacking, if you want, of taking advantage of a contingent, which is big, is growing, looks like us, and it’s here for us.” HSBC takes on Revolut, Wise with new forex app for non-customers India’s Vodafone Idea says not in tie-up talks with Musk’s Starlink BY HARRY WILSON Bloomberg BY VARUN VYAS Reuters BY AKASH SRIRAM Reuters Read the full story REUTERS
WEDNESDAY JANUARY 3, 2024 25 THEEDGE CEO MORNING BRIEF WORLD (Jan 2): The People’s Bank of China injected nearly US$50 billion (RM230 billion) worth of low-cost funds into policy-oriented banks last month, suggesting the central bank may be ramping up financing for housing and infrastructure projects to support the economy. The outstanding amount of the PBOC’s Pledged Supplemental Lending program to policy banks climbed to 3.25 trillion yuan at the end of December from 2.9 trillion yuan in the previous month, the central bank said in a Tuesday statement. The net injection of 350 billion yuan was the largest increase via the tool since November 2022. The PSL programme is seen as an important tool in Beijing’s arsenal, which the government can use to shore up the property sector and stabilise growth this year. Markets have been expecting the central bank to use the money to drive construction of public housing in a bid to alleviate a multi-year property slump that’s hammered consumer confidence. Bloomberg News reported in November that policymakers were planning to provide one trillion yuan in low-cost central bank funding in phases to help programmes focused on affordable housing and the renovation of urban villages. Officials were considering using the PSL programme or special loans. China Development Bank — one of the policy banks, which are driven by government priorities more than profits — extended a loan to an affordable housing construction project in the southeastern province of Fujian last month. The lender issued a 10 million yuan loan to support the construction of a 700-unit project, and committed an overall credit line of 202 million yuan, according to local media reports. The PSL tool has a controversial history. It was last used heavily between 2014 and 2019 for the rebuilding of shantytowns, as it helped halt a property slump but at the same time inflated home price bubbles. Some economists called it “helicopter money” or “Chinese-style quantitative easing” back then. The programme was again briefly used at the end of 2022 to help policy banks like China Development Bank provide funding to infrastructure projects, which totalled 740 billion yuan and drove even more investment. The PBOC provided about 500 billion yuan in PSL loans over the last three months of 2022. China injects US$50 bil into policy banks in financing push (Jan 2): Hong Kong’s property market last year posted the fewest number of transactions in 33 years, a reflection of the city’s severe property downturn. The city recorded 58,023 property transactions, the lowest since 1991 when Centaline Property Agency Ltd began recording the data. Second-hand residential properties sold the fewest in 28 years. Rising interest rates and a population outflow due to Beijing’s tightening control and Covid-controls during the pandemic have pummelled the city’s property market. Hong Kong’s property market is expected to remain subdued in 2024 amid bleak economic conditions and uncertain interest rate adjustments. Mass residential prices are forecast to stay flat or fall as much as 5%, according to Knight Frank. As another reflection of challenges, the number of mortgages for Hong Kong real estate fell to the lowest in more than two decades. The financial hub recorded 73,906 mortgages for existing residential and commercial units last year, the fewest since 2001, according to a report by mReferral Mortgage Brokerage Services. The number for unfinished ones dropped to the lowest since 2005 at 1,581 cases. “Hong Kong’s economy has not fully recovered, developers are finding it difficult to launch projects and the second-hand market is weak, thus affecting mortgage figures for both existing and uncompleted properties,” said Eric Tso, chief vice president of mReferral Mortgage Brokerage Services. HONG KONG (Jan 2): China’s property market continued to consolidate in 2023 with state-affiliated firms dominating the home sales and land acquisition market, private surveys showed, as more private firms got embroiled in the sector’s deepening debt crisis. The top six home sellers last year were all state-owned or state-backed developers, with Poly Developments, China Vanke and China Overseas Land & Investment topping the league table, according to real estate research firm China Index Academy. China’s largest private developer Country Garden, which defaulted on its US$11 billion (RM50.6 billion) dollar bonds in October, slipped to No 7 from No 1 in 2022, as its sales dropped 53% to 220 billion yuan. Longfor Group, a major private developer that has not defaulted on its borrowings and deemed to be financially healthy by investors, retained its No 9 position, though sales also decreased 15%. The China Index Academy said total sales of China’s top 100 developers were down 17.3% to 6.3 trillion yuan in 2023 from a year earlier, as property companies focused on cost controls and stable development rather than aggressive expansion. Since mid-2021, China’s property sector has grappled with a liquidity crisis, with many developers defaulting on, or delaying, debt payments as they struggle to sell apartments and raise funds. The slowdown in a sector which makes up about a quarter of the economy has been a major blow to consumer and investor confidence. The authorities have announced a flurry of measures to try to revive the housing market but they have proven only modestly beneficial, raising pressure on Beijing for more stimulus to shore up demand and inject liquidity into the market. Read the full story Hong Kong mortgages for existing property slide to fewest since 2001 China’s stateowned developers dominate sales, land markets in 2023 — surveys BY KRYSTAL CHIA Bloomberg Bloomberg Bloomberg
WEDNESDAY JANUARY 3, 2023 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) FINTEC GLOBAL BHD 204.00 0.000 0.010 0 59.2 BSL CORP BHD 198.03 0.000 0.045 0.00 86.9 FAST ENERGY HOLDINGS BHD 138.10 0.045 0.175 34.62 37.7 METRONIC GLOBAL BHD 106.23 0.005 0.020 33.33 30.6 SAPURA ENERGY BHD 101.16 0.010 0.055 22.22 878.8 MINETECH RESOURCES BHD 79.49 0.000 0.145 0.00 223.4 GREEN OCEAN CORP BHD 77.20 -0.010 0.215 -4.44 45.4 HONG SENG CONSOLIDATED BHD 76.94 0.005 0.030 20.00 153.3 PASUKHAS GROUP BHD 75.85 0.030 0.185 19.35 35.2 SARAWAK CABLE BHD 74.32 0.030 0.405 8.00 161.6 WIDAD GROUP BHD 58.20 0.000 0.485 0.00 1,501.8 BIOALPHA HOLDINGS BHD 57.16 0.010 0.120 9.09 168.8 SMTRACK BHD 57.08 0.005 0.055 10.00 67.3 LEFORM BHD 54.90 0.000 0.440 0.00 651.6 TOP GLOVE CORP BHD 50.86 0.010 0.910 1.11 7,287.4 MY EG SERVICES BHD 50.74 -0.015 0.800 -1.84 5,967.6 SAUDEE GROUP BHD 46.96 0.005 0.030 20.00 44.6 CAREPLUS GROUP BHD 44.19 -0.015 0.410 -3.53 243.8 MMAG HOLDINGS BHD 43.90 0.030 0.125 31.58 37.5 EPICON BHD 43.80 -0.050 0.420 -10.64 249.8 Data as compiled on Jan 2, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) LAMBO GROUP BHD 0.030 50.00 3,364.5 50.00 46.2 FAST ENERGY HOLDINGS BHD 0.175 34.62 138,107.2 34.62 37.7 METRONIC GLOBAL BHD 0.020 33.33 106,225.7 33.33 30.6 FOCUS DYNAMICS GROUP BHD 0.020 33.33 2,960.2 33.33 127.4 MMAG HOLDINGS BHD 0.125 31.58 43,906.6 31.58 37.5 PDZ HOLDINGS BHD 0.065 30.00 33,900.7 30.00 38.2 SUNGEI BAGAN RUBBER CO MALAYA 4.220 29.85 679.0 29.85 279.3 KUCHAI DEVELOPMENT BHD 1.620 29.60 564.2 29.60 200.5 BRITE-TECH BHD 0.370 27.59 9,159.7 27.59 93.2 DIGISTAR CORP BHD 0.075 25.00 5,739.1 25.00 34.9 PBA HOLDINGS BHD 1.810 23.97 20,044.9 23.97 599.1 SAPURA ENERGY BHD 0.055 22.22 101,163.8 22.22 878.8 BTM RESOURCES BHD 0.085 21.43 2,613.4 21.43 106.8 HONG SENG CONSOLIDATED BHD 0.030 20.00 76,943.8 20.00 153.3 SAUDEE GROUP BHD 0.030 20.00 46,964.5 20.00 44.6 XIDELANG HOLDINGS LTD 0.030 20.00 29,081.6 20.00 63.5 MQ TECHNOLOGY BHD 0.030 20.00 3,671.2 20.00 44.1 INCH KENNETH KAJANG RUBBER PLC 0.480 20.00 846.3 20.00 161.6 G3 GLOBAL BHD 0.030 20.00 1,038.8 20.00 113.2 KLUANG RUBBER CO MALAYA BHD 4.340 19.89 167.5 19.89 269.8 Data as compiled on Jan 2, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) ALAM MARITIM RESOURCES BHD 0.025 -16.67 435.0 -16.67 38.3 Y&G CORP BHD 0.710 -15.48 0.4 -15.48 155.1 BENALEC HOLDINGS BHD 0.125 -13.79 14,178.3 -13.79 127.4 ZELAN BHD 0.070 -12.50 14,744.4 -12.50 59.1 REACH ENERGY BHD 0.035 -12.50 2,028.0 -12.50 74.5 TA WIN HOLDINGS BHD 0.035 -12.50 3,900.3 -12.50 120.2 ECOBUILT HOLDINGS BHD 0.080 -11.11 171.4 -11.11 33.7 VSOLAR GROUP BHD 0.200 -11.11 10,130.3 -11.11 32.2 EPICON BHD 0.420 -10.64 43,797.9 -10.64 249.8 INDUSTRONICS BHD 0.045 -10.00 1,878.0 -10.00 31.8 ASDION BHD 0.095 -9.52 18,656.6 -9.52 45.0 CITRA NUSA HOLDINGS BHD 0.050 -9.09 400.0 -9.09 36.0 HANDAL ENERGY BHD 0.110 -8.33 26,973.7 -8.33 32.5 KPS CONSORTIUM BHD 0.510 -8.11 8.0 -8.11 82.9 JOHAN HOLDINGS BHD 0.060 -7.69 1,182.5 -7.69 70.1 FEDERAL INTERNATIONAL 0.500 -7.41 44.6 -7.41 69.2 ARK RESOURCES HOLDINGS BHD 0.325 -7.14 6.1 -7.14 22.6 IMASPRO CORP BHD 3.530 -6.98 1,125.6 -7.83 282.4 PERAK CORP BHD 0.450 -6.25 6.5 -6.25 45.0 SINARAN ADVANCE GROUP BHD 0.08 -5.88 368.5 -5.88 73.2 Data as compiled on Jan 2, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) RAPID SYNERGY BHD 27.820 -0.660 185.9 -2.32 2,973.9 HEXTARTECHNOLOGIES SOLUTIONS 22.120 -0.380 12.8 -1.69 2,845.7 IMASPRO CORP BHD 3.530 -0.260 1,125.6 -7.83 282.4 CARLSBERG BREWERY MALAYSIA 19.040 -0.240 346.5 -1.24 5,821.4 HONG LEONG BANK BHD 18.660 -0.240 525.3 -1.27 40,449.6 YNH PROPERTY BHD 4.040 -0.210 2,236.5 -4.94 2,135.1 HARRISONS HOLDINGS MALAYSIA 8.420 -0.200 6.2 -2.32 576.6 PPB GROUP BHD 14.280 -0.200 278.0 -1.38 20,314.7 MALAYSIAN PACIFIC INDUSTRIES 28.020 -0.180 118.4 -0.64 5,573.1 KUALA LUMPUR KEPONG BHD 21.660 -0.160 282.2 -0.73 23,358.9 PETRONAS DAGANGAN BHD 21.700 -0.140 200.5 -0.64 21,558.0 VITROX CORP BHD 7.150 -0.140 73.6 -1.92 6,759.3 Y&G CORP BHD 0.710 -0.130 0.4 -15.48 155.1 GENTING PLANTATIONS BHD 5.580 -0.100 110.0 -1.76 5,006.2 PANASONIC MANUFACTURING 17.900 -0.100 21.3 -0.56 1,087.3 UWC BHD 3.420 -0.100 1,163.2 -2.84 3,767.7 SIME DARBY PLANTATION BHD 4.370 -0.090 2,021.6 -2.02 30,221.7 MALAYAN CEMENT BHD 4.150 -0.080 961.6 -1.89 5,437.3 TA ANN HOLDINGS BHD 3.430 -0.080 1,094.9 -6.28 1,510.8 HONG LEONG FINANCIAL GROUP 16.360 -0.080 82.5 -0.49 18,736.2 Data as compiled on Jan 2, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) SUNGEI BAGAN RUBBER CO MALAYA 4.220 0.970 679.0 29.85 279.3 DUTCH LADY MILK INDUSTRIES BHD 24.000 0.840 19.5 3.63 1,536.0 KLUANG RUBBER CO MALAYA BHD 4.340 0.720 167.5 19.89 269.8 KUCHAI DEVELOPMENT BHD 1.620 0.370 564.2 29.60 200.5 PBA HOLDINGS BHD 1.810 0.350 20,044.9 23.97 599.1 APM AUTOMOTIVE HOLDINGS BHD 2.750 0.250 503.0 10.00 537.6 MCE HOLDINGS BHD 3.120 0.240 2,260.6 8.33 192.7 PMB TECHNOLOGY BHD 2.990 0.210 1,028.7 7.55 4,846.4 PARAGON UNION BHD 2.990 0.200 259.9 7.17 250.7 CRESCENDO CORP BHD 2.450 0.130 547.6 5.60 684.6 MALAYSIA AIRPORTS HOLDINGS 7.490 0.130 1,848.4 1.77 12,497.5 UNIMECH GROUP BHD 1.890 0.120 9.0 6.78 277.7 KECK SENG MALAYSIA BHD 4.900 0.120 126.8 2.51 1,760.6 AMWAY MALAYSIA HOLDINGS BHD 6.000 0.120 81.9 2.04 986.3 WCE HOLDINGS BHD 1.130 0.110 12,899.7 10.78 3,376.1 BINTULU PORT HOLDINGS BHD 5.240 0.100 8.4 1.95 2,410.4 HAP SENG CONSOLIDATED BHD 4.650 0.100 577.0 2.20 11,577.0 NESTLE MALAYSIA BHD 117.700 0.100 82.2 0.09 27,600.7 IQ GROUP HOLDINGS BHD 0.830 0.095 126.4 12.93 73.0 SUNWAY BHD 2.150 0.090 11,833.7 4.37 11,729.7 Data as compiled on Jan 2, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 37,689.54 -20.56 -0.05 S&P 500 * 4,769.83 -13.52 -0.28 NASDAQ 100 * 16,825.93 -72.54 -0.43 FTSE 100 * 7,733.24 4.10 0.05 AUSTRALIA 7,627.79 36.97 0.49 CHINA 2,962.28 -12.66 -0.43 HONG KONG 16,788.55 -258.84 -1.52 INDIA 71,892.48 -379.46 -0.53 INDONESIA 7,323.59 50.79 0.70 JAPAN 33,464.17 -75.45 -0.22 KOREA 2,669.81 14.53 0.55 PHILIPPINES 6,554.04 104.00 1.61 SINGAPORE 3,229.95 -10.32 -0.32 TAIWAN 17,853.76 -77.05 -0.43 THAILAND 1,433.38 17.53 1.24 VIETNAM 1,131.72 1.79 0.16 Data as compiled on Jan 2, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,660.00-61.00 OIL US$ 78.781.74 RM/USD 4.6058 RM/SGD 3.4817 RM/AUD 3.1418 RM/GBP 5.8574 RM/EUR 5.0732
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Malaysian drug kingpin nabbed in Laos Suspect a key player in Golden Triangle and has RM11.45m assets in four Thai districts. Report on — page 6 ‘AI can help enhance road traffic safety’ Predictive analytics in artificial intelligence can be used to deploy resources to prevent crashes before they occur: Expert Clear air over ‘lost tribe of Israel’ claims: Jakim Islamic development department wants academicians, scientists to study allegations in online videos to ensure authentic information is provided to curb public confusion. RUNWAY INFERNO ... Firefighters attempting to extinguish a blaze on a Japan Airlines plane after it collided with another aircraft at Haneda Airport in Tokyo yesterday. – JIJI PRESS/AFPPIC Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 WEDNESDAY JAN 3, 2024 SCAN ME No. 8428 PP 2644/12/2012 (031195) Report on — page 3 Report on — page 3 Game-changing ame-changing move Government launches central database hub system, which is poised to revolutionise economic landscape and offer a data-driven approach to subsidy distribution and social assistance. Report on — page 2 - Report on page 7
WEDNESDAY | JAN 3, 2024 2 Central database hub to address economic inequalities PETALING JAYA: In a groundbreaking move yesterday, Malaysia launched the Central Database Hub (Padu), with the aim of restructuring the distribution of government subsidies and social assistance to effectively address economic inequalities. Malaysia University of Science and Technology economist and research and innovation provost Prof Geoffrey Williams said the setting up of Padu is a gamechanging initiative with significant economic implications. “It can help to ensure a baseline income for all, and target support more directly.” He added that the hub would enhance efficiency as it focuses on specific criteria such as the number of dependents instead of household income categories. “It allows welfare support to be oInitiative aims to help ensure baseline income for all, targeting social assistance more directly, says professor █ BY SIVANISVARRY MORHAN [email protected] Hub to stem leakage, misappropriation of aid PUTRAJAYA: The introduction of the Central Database Hub (Padu) is in line with the country’s digital transformation move and ensures that every government service will be enjoyed by deserving recipients, said Prime Minister Datuk Seri Anwar Ibrahim. He said leakages in the distribution of government aid could be avoided via the hub. “We are building a more sophisticated and competitive national system. We should not compromise on this matter because, without Padu, there is too much leakage and misappropriation. That’s why there are still poor groups in the country,” he said at its launch yesterday. Anwar said subsidy distribution without a digital approach would only lead to the super-rich and even foreigners benefiting from it. “The total amount of subsidies given by the government is now RM80 billion, and it’s unlikely that Malaysia can sustain its finances if this issue is not addressed.” Anwar said the country’s ability to develop the hub clearly shows that the government machinery is capable of implementing new things without depending on highcost international consultants. “The central database method forces every citizen of the country to understand digital transformation and to use Padu.” He also reminded the entire government machinery not to leave behind the urban poor as well as those in rural and remote areas. Padu, which contains profiles of individuals and households, including citizens and permanent residents in Malaysia, is an integrated socio-economic database that combines data from government departments and agencies to provide a fair representation of the socioeconomic status of each household in Malaysia, Bernama reported. Padu is officially open from yesterday until March 31 for the public aged 18 and above to register and check data on the system’s portal as well as update and verify 39 required personal information. targeted directly to needy individuals, eliminating distinctions such as B40, M40 and T20 income groups.” Williams said direct cash transfers would cut out problems associated with subsidies, such as distortion of market prices, benefits to the rich as well as corruption. He said addressing economic disparities is crucial and Padu will provide accurate information on income as well as income inequality. “This data-driven approach can be instrumental in economic policy analysis and allow for a more accurate targeting of groups and locations.” Nusantara Academy for Strategic Research geostrategist and senior fellow Prof Dr Azmi Hassan said Padu will revolutionise Malaysia’s economic landscape and offer a data-driven approach to subsidy distribution and social assistance. He said the inclusion of factors such as location and the number of households in the database is a positive step. Azmi said there are concerns on the implementation timeline for the public to update their data. He emphasised the sensitivity of the vast amounts of information collected by Padu. Economy Minister Rafizi Ramli had previously said Padu aims to consolidate data from various government agencies into a single database. “Its primary objective is to provide the government with a comprehensive understanding of household income in Malaysia, enabling more efficient subsidy distribution and the formulation of better policies.” He said users are required to verify and update the information gathered from agencies, with the deadline set for March 31. “Upon logging into Padu, users will encounter over 270 data fields, covering personal details, information on dependents, income, vehicles and more. “All citizens aged 18 and above need to register and check the data on the portal as well as update and verify 39 required items of personal information,” said Rafizi. Azmi pointed out that the sheer volume of data that Padu has to manage raises questions about the system’s capacity to efficiently handle it. “There are public worries about potential bottlenecks and technical glitches that could hinder smooth information transition. “This concern is particularly heightened given the critical nature of the data involved and the need for its accuracy in shaping public policies and services.” Azmi called for greater transparency and clarity from authorities regarding the implementation timeline. He stressed on the importance of ensuring that only the government has access to the data and allaying fears of potential misuse. “Building public trust in the government’s ability to handle data responsibly requires a collaborative effort involving clear legislation, effective enforcement mechanisms and ongoing dialogue between the government and citizens.” ‘Dubai Move’ has no impact on govt, says Anwar PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim said he has heard of the “Dubai Move”, but the said move, which purportedly aims to topple the unity government, has no impact on his administration. He said the focus of the government under his leadership now is on developing the nation and looking after the well-being of the people. “I have read about the ‘Dubai Move’ but for me, we are concentrating on our work. Their deception, for me, has no effect. “What is important is that we have started Jan 2 by launching an important programme (Central Database Hub) for the people,” he said after launching the hub yesterday. Community Communications Department Deputy Director-General Datuk Ismail Yusop was reported on Dec 30 to have said that the “Dubai Move” happened during a recent vacation that Perikatan Nasional leaders and government officials took in the United Arab Emirates. Meanwhile, Anwar expressed his appreciation to the Malaysian AntiCorruption Commission and the police for their firmness and courage in taking action regardless of the rank and status of the individuals implicated. He added that this indirectly shows the country’s commitment to good governance as well as efforts to combat corruption and the drug problem by ensuring that no dignitaries, “sharks” or “small fish” involved would escape investigation and action by the authorities. “Alhamdulillah, we have shown the kind of determination seldom seen in other countries, what more developing nations. The authorities have acted against personalities considered immune from any form of investigation and action. “You steal national funds, rob the country of its wealth, whether you are the prime minister, finance minister, minister, remember, we have to act firmly to save the country.” No Malaysians affected by quake PUTRAJAYA: No Malaysians have been reported to be affected to date by the earthquake in Japan on Monday, according to the Foreign Ministry. Wisma Putra, via the Malaysian Embassy in Tokyo, is closely monitoring developments in the aftermath of the earthquake. “Malaysia extends its deepest sympathies and condolences to the victims and families affected by the earthquake, as well as the people and government of Japan,” it said. The ministry said Malaysians in affected areas are advised to remain vigilant and follow the latest updates and advice issued by local authorities. Malaysians requiring assistance can contact the Malaysian Embassy in Tokyo at +81-3-3476-3840 or +8180-3913-3840, email [email protected] or [email protected]. – Bernama Some 4,900ha of farm land hit by floods PUTRAJAYA: Floods have affected a total of 4,894ha of agricultural land and 2,269 farmers, resulting in losses estimated at about RM23 million, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. “Among the severely affected agricultural areas are those in Kelantan,” he said yesterday, after chairing a briefing on the latest flood situation. The Central Disaster Management Committee chairman said 51 health facilities were also affected, with 23 in Kelantan, 17 in Pahang and 11 in Terengganu, Bernama reported. Ahmad Zahid said since the start of the northeast monsoon in early November, 62,467 people and 19,204 homes were affected in several states. He expressed hope that district offices in flood-hit areas would distribute aid fairly to all those affected. The rural and regional development minister said the National Disaster Management Agency is on high alert to face floods expected in Sabah and Sarawak between February and March. Part of the crowd registering and updating their personal information on the newly launched CDH at the event held in Putrajaya yesterday. – AMIRUL SYAFIQ /THESUN
WEDNESDAY | JAN 3, 2024 3 PETALING JAYA: The Department of Islamic Development Malaysia (Jakim) has called on experts to clear public confusion over videos circulating online that claim the Malays are one of the lost tribes of Israel. “Jakim welcomes academicians and scientists of related fields to study this matter to ensure authentic information is provided to ease public confusion,” its spokesperson said. Jakim told theSun the allegations made by certain individuals regarding the origin of Malays require in-depth scientific research before a conclusion can be made. International Islamic University Malaysia Political Science Department head Assoc Prof Dr Syaza Shukrian said: “These claims stretch historical information. I don’t know what motivated such claims but they could mislead Muslims in the country. “The claims go beyond what historical and genetic evidence can currently support,” she said. In one video, a Muslim preacher claimed the Malays descended from one of the 12 tribes of Israelis and said: “The Malay DNA is the same as that of the Israelis, according to research in UKM (Universiti Kebangsaan Malaysia).” Syaza said those who made such claims should back them up with academic findings, given that the claims stretched established research and information. While acknowledging the importance of studying the history of the Malay world, she said some of the videos were “just too much”. “There is nothing wrong with researching Malay history, but to make a direct connection between the Malay people and Prophet Ibrahim (which the preacher has also done) is unacceptable,” Syaza said, adding that the claims were merely speculative and gross misinterpretations. She said there is nothing to be ashamed of in being a people who accepted Islam without any direct connection to the prophets. She also said while the Malays in the country may want to give their interpretation of historical facts, they often find themselves constrained by the overarching influence of established historical perspectives. The Malays should be proud of their history without attempting to interpret it without historical or scientific facts, she said. “There seems to be a need for the Malays to seek an Arabised identity to feel like a ‘true’ Muslim. Hence, these stories make it appealing to the audience.” She said subjects such as history are not very popular in the country, which currently emphasises STEM education among students. “People need to work on their critical thinking skills and evaluation when it comes to history and science. “Not all historical claims are equally credible and critical evaluation of them, regardless of the source, is important.” Syaza said when people are taught to appreciate history and science, there would be expectations of greater accountability. “This (accountability) can be directed towards personal choices, relationships with others, and the engagement with broader issues such as race and religion.” Meanwhile, UKM Islamic Studies Faculty dean (Usuluddin and Philosophy) Assoc Prof Dr Ahmad Sunawari Long urged Islamic scholars in the country to break their silence as the issue will continue to grow and cause the Malays to believe in misguided information. “The claims must be strong and scientifically proven, not arbitrarily made to claim that the Malays and Jews are related. This is not a matter of aqidah (Islamic faith) but a question of thought, culture and belief surrounding the Malay as an ethnic group.” Ahmad Sunawari said the Palestine-Israel war has become a complex issue with diverse perspectives. “So, Islamic scholars should approach issues with sensitivity.” Zaliha to address KL legacy issues KUALA LUMPUR: Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa wants to address legacy issues and improve the quality of life for city folks. She said issues such as cleanliness and safety around Masjid Jamek and the River of Life area, homelessness and the influx of undocumented foreign nationals in Jalan Silang and several main roads in the capital will be looked into. In a Facebook post, Zaliha said she visited several areas to understand local issues and problems firsthand that can be improved. She also took the opportunity to hear the views and complaints of traders in and around Kuala Lumpur, Bernama reported. “We will work together to improve the quality of life for Kuala Lumpur residents.” ‘Clear air over lost tribes of Israel claims’ oOnline video on origin of Malays requires in-depth scientific research before conclusion can be made: Jakim RM4.5m tithe distributed in Perlis KANGAR: The Perlis Islamic Religious and Malay Customs Council (Maips) distributed a total of RM4,529,000 to 6,470 asnaf (eligible to receive tithe) individuals across the state through its Peduli Cycling Programme last year. Maips said in a statement all 80 cycling events under the programme were led by the Raja Muda of Perlis and Maips president Tuanku Syed Faizuddin Putra Jamalullail. Maips CEO Mohd Nazim Mohd Noor said the council was blessed with the commitment of the Raja Muda in the initiative. “Through the Maips Peduli Cycling Programme, a total of 45,425 recipients have received contributions since 2013, involving RM29,301,500 through 867 cycling events.” – Bernama █ BY QALIF ZUHAIR [email protected] Digital road tax sharing option on app SHAH ALAM: Motor vehicle owners can now share their digital road tax (e-LKM) using a new feature called “Kongsi LKM” on the MyJPJ app. Transport Minister Anthony Loke said with the option, vehicle owners can share the e-LKM with family members, friends or other individuals with permission to drive the vehicle. “Vehicle owners only need to click on the licence plate number concerned and then click the ‘Share LKM’ tab to share it. “This feature also has a sharing time limit that can be set by the vehicle owner and has an activation code that needs to be given to the recipient of the e-LKM to activate sharing. “The system will also delete the sharing record automatically if it is not activated within 24 hours,” he said after visiting the Selangor Road Transport Department (RTD) office yesterday. Loke said the new feature in the MyJPJ app was installed to solve the problems faced by those driving borrowed vehicles, Bernama reported. “Prior to this, the public is allowed to print the e-LKM, but considering the various issues that arose, improvements were made to make it easier for users,” he said. Loke added that the ministry will also introduce security papers to replace vehicle licence stickers and physical driving licences. “Based on findings of studies and statistical analysis conducted in 2023, RTD found that there was an increase in the number of drivers and vehicle owners who chose digitalisation, involving 7.5 million users. “However, those who are still not ready can still choose physical LKM and LMM during the interim digitalisation period in 2024, and during this period, JPJ Malaysia will issue physical LKM and LMM in a new and standardised form in the form of security paper only,” he added. He said the new road tax document does not need to be affixed or displayed on the vehicle windshield as required under Section 20(1) of the Road Transport Act. SHAH ALAM: The renewal of driving licences and motor vehicle road tax can be done through the MyJPJ app beginning Feb 1, said Transport Minister Anthony Loke. He said licence renewal via the app will be implemented in phases, with the initial stage only involving private individual Malaysian vehicles. “To facilitate public access of the services of the Road Transport Department (RTD) digitally, renewal of road tax and driving licence may be conducted through MyJPJ app beginning Feb 1. “The move is to facilitate public access to RTD services digitally. The additional functions will help save time and costs as well as reduce the congestion for physical transactions at RTD counters,” he said in a media conference after visiting the Selangor RTD office yesterday. Loke said to encourage the use of the Digital Malaysia Driving Licence (e-LMM), those who choose e-LMM during renewal will enjoy a rebate of RM5. “This rebate will be offered throughout the year, which is from Feb 1 to Dec 31. “This initiative applies to those who choose e-LMM during renewal either through RTD counters, mySIKAP portal, MyJPJ app or RTD business partners such as Pos Malaysia offices and MyEG Services Berhad. “This initiative is only for Malaysian citizens and does not apply to foreign nationals or holders of long-term permit passes, MyKAS cards and MyPR cards,” he said. He added that as of Dec 31, 7.5 million individuals were using the MyJPJ app and the number is expected to increase this year. “The government initiative announced today is an effort by the Transport Ministry and RTD to simplify transactions for physical motor vehicle licence and driving licence holders and to further support the best digitisation services for the people. “The minitry and RTD also appreciate the support from various parties in the implementation of digitalisation. “I call on the community to be with us to make the digitalisation of RTD a success.” – Bernama Online renewal of driving licence, road tax soon Loke showing the new digital motorcycle road tax during a press conference at the Selangor Road Transport Department yesterday. – BERNAMAPIC
WEDNESDAY | JAN 3, 2024 4 @thesundaily FOLLOW ON TWITTER Malaysian Paper Contact theSun's Sales & Marketing team to book your advertising space. Malaysian Paper 03-7784 6688 [email protected] Advertise with us on Chinese New Year Special on JAN 26, 2024 Chinese New Year SPECIAL Let’s welcome the Year of the Dragon with us! In the Chinese culture, the dragon represents good luck, strength and health, and those are what we wish for you, while you check out our Chinese New Year supplement, to let yourself be aware of the current and upcoming festive sales, deals and promotions. PUBLICATION DATE 26 JANUARY, 2024 (Friday) BOOKING DEADLINE 12 JANUARY, 2024 (Friday) KUALA LUMPUR: According to experts, pet owners should refrain from dressing up their cats as it can elevate their anxiety levels, which could make them more susceptible to life-threatening illnesses. To put it simply, both costumes and accessories restrict their natural movements and make them less capable of expressing normal behaviour such as grooming. Cat lover Johan Eskandar Mohamad Najib used to enjoy dressing up his feline pets in different outfits and accessories as they appeared adorable in them. Then one day, he realised dressing up his furry friends was causing them stress and even trauma. He immediately vowed not to do so anymore. Johan – whose social media handle is @johanandhiscats and who has some 303,000 followers on his Instagram account that is devoted to guiding Malaysians to be better cat parents – said he used to be easily drawn to clothes and accessories sold in pet stores or online shops as he thought his cats would look cute in them. “One day, I noticed one of my cats just froze and looked gloomy when I tried to dress it up. After further examination, I found that some of my Muhammad Naim said domesticated animals such as cats feel stressed when humans disrupt their normal behaviour patterns. – AMIRUL SYAFIQ /THESUN oForcing pets to wear garments, ornaments that restrict natural behaviour may cause serious health issues: Experts Malacca-Pahang cooperation on tourism MALACCA: The state government here is willing to utilise opportunities for cooperation in the form of art and culture with other states, including cultural heritage, to attract tourists. Chief Minister Datuk Seri Ab Rauf Yusoh said this included further expansion of programmes such as the Malacca-Pahang Heritage and Tourism Festival 2023, which was held in Banda Hilir last November. “It will be extended from being tourism related to include traditional food for both states. This cooperation will not only add value to domestic tourism for both states but also at the international level,” he told reporters after the opening of the House of Patin Melaka restaurant in Kampung Hulu on Monday. Also present was Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail. Abd Rauf said the state is also seeking cooperation with Pahang in the form of historical research on ancient Malacca, Bernama reported. Meanwhile, Wan Rosdy said both states not only have attractive tourist destinations but also need to showcase the uniqueness of their culinary heritage to tourists. “These two states will show synergy, with tourists coming to Malacca and vice versa. God willing, we will build stronger cooperation.“ cats did seem uncomfortable and even stressed when I adorned them with ornaments and accessories although they looked cute in my eyes,” he said recently. Johan, 31, who owns 30 cats including breeds such as Scottish Fold, British Fold, Maine Coon, Selkirk Rex, Cornish Rex, Munchkin, American Bobtail, Sacred Birman and Sphynx, opened a cat studio in Shah Alam in 2016 to educate the public on how to care for their cats. However, the studio, said to have been the first such establishment in the world, closed down after operating for eight months as he wanted to protect the well-being of his cats. “The response (from the public) was good. But there were too many people (in my studio) and some of them didn’t follow the rules I had set and my cats appeared uncomfortable,” he said. Kitty’s Care Animal Clinic and Surgery founder Dr Muhammad Naim Md Kasim said domesticated animals such as cats can feel stressed when humans disrupt their normal behaviour. “Humans like the idea of their cats adapting to their lives. For example, they put mittens on their paws and find it cute. However, cats need to sharpen their claws as that is their normal behaviour,” he said. According to the veterinary doctor, the stress experienced by humans and cats is very different because stress in cats can be more drastic. He said for instance, a person under stress will eat when he/she is hungry but when a cat is stressed, it will refuse food even when it feels hungry, Bernama reported. “When a cat is stressed, it will even be afraid to urinate, especially when there is a change in the type of litter used. Some cats may withhold urination but others may protest by urinating outside the litter box. When the frequency of urination is disrupted, it can lead to the formation of kidney stones. “Stress can result in different physiological responses in cats, subsequently causing their immune system to weaken. When this happens, cats become more vulnerable to developing lifethreatening conditions such as heart disease, high blood pressure, kidney stones and diabetes.” Nurul Ain Abd Hamid, who owns S.I. Shelter in Shah Alam, said many of the new feline arrivals at her facility developed kidney stones due to the stress of being holed up in new surroundings. “They were previously healthy cats but after coming to my place, they refused to urinate in the litter boxes provided as they were not used to it, thus the kidney stone problem,” she said. Nurul Ain, who has over 100 cats in her care, said cats under stress usually experience fur loss or have spiky or clumped coats. “The easiest way to tell if a cat is stressed is by observing its fur. If a cat is not stressed, its fur will not be spiky, nor will the cat shed a lot when held,” she explained, adding that the cats at her shelter are treated lovingly to make them feel more secure and comfortable. Dresses stress cats
WEDNESDAY | JAN 3, 2024 5 Relaxing of school attire rule lauded TUMPAT: The Kelantan Education Department’s decision to allow students to attend school in casual clothing is a relief for families affected by the recent floods. Salmah Md Nooh, 53, said the move allowed her to focus on more important things like cleaning the house as she and her family had just returned home after being evacuated to a temporary relief centre. She said the school uniform she bought for her child, who is entering Standard One at Sekolah Kebangsaan (SK) Pengkalan Kubor 1, was badly damaged by the floods. “I am so glad for the flexibility given. I don’t have to rush to find uniforms because we are still in the process of cleaning the house,” she said when met at the school yesterday. Meanwhile, Haznida Husin, a 37-year-old mother of a Year Two pupil, said the move also prevents embarrassment for students whose uniforms were ruined and stained. “When they wear sports attire, they won’t feel so embarrassed to meet their friends,” she said. Sekolah Menengah Kebangsaan Chabang Empat headmaster Rozeman Din said the initiative by state education department could encourage attendance rates. He also expressed gratitude that his school had not received any reports from students on damage to books and school equipment. – Bernama Pipe leak causes 3-week water cut JERTIH: Syarikat Air Terengganu Sdn Bhd (Satu) has confirmed a water supply disruption at 11 villages involving the Bukit Keluang water tank was caused by a pipe leak at the bottom of Sungai Besut in Jambatan Kampung Lampu near here. Satu said in a statement the leak in the 600mm pipe would result in 2,670 account holders experiencing water supply disruption from Monday until Jan 21 while repair works are carried out by an appointed contractor. Six tanker lorries to deliver water and 49 static tanks are being placed in the affected areas, with priority given to critical premises throughout the unscheduled water supply disruption period. According to the statement, Satu will provide the latest updates on the situation from time to time through its communication channels, such as www.satuwater.com.my website, MySATU app, Facebook and Instagram. Affected consumers may also contact its Careline at 1300-88-2111 if they have any queries or complaints. – Bernama RM3.75m needed for road repairs GUA MUSANG: An additional cost of RM3.75 million is needed for the maintenance of four locations identified along Jalan Gua MusangKuala Krai for the comfort and safety of road users in the area. Galas assemblyman Mohd Syahbuddin Hashim said an application for the additional funds has been submitted by the Kelantan Works Department and a meeting with the ministry will be held soon. “During a briefing session with department director Mohd Suhaili Ismail, the East Coast Economic Region 1 Special Project Unit and Roadcare (M) Sdn Bhd, I understand the department still needs additional allocations of RM3.75 million to repair the damage at Jalan Gua Musang-Kuala Krai. “As such, I will give my commitment with the state department to apply for consideration from the ministry, as it is a pressing need for the people,” he told reporters yesterday. – Bernama AI application in road safety KUALA LUMPUR: Artificial intelligence (AI) can play a pivotal role in enhancing traffic safety and addressing the increasing number of road crash fatalities in Malaysia, said Prof Dr Manjit Singh Sidhu, from the College of Computing and Informatics at Universiti Tenaga Nasional. Calling AI part of a multifaceted approach to mitigating automobile crashes in the country, he said a key application involves predictive analytics, in which AI algorithms analyse previous case data, traffic patterns and environmental factors to identify and predict possibilities in crash prone areas. “This information can be used strategically to deploy resources such as law enforcement or road maintenance in high risk zones and prevent crashes before they occur,” he said. Manjit cited Transport Ministry records that showed there were 545,588 road crashes in 2022 with 6,080 deaths, and 370,286 in 2021 with 4,539 fatalities. “A study by the Malaysian Institute of Road Safety Research also revealed human behaviour was the primary cause of road crashes, followed by factors such as the design and condition of road infrastructure, as well as the condition of vehicles.” He said road safety has been revolutionised by the fast-changing AI landscape, with vehicles now incorporating its technologies to elevate driving safety standards and even becoming driverless. Some vehicles can also recognise possible risks and provide motorists with instantaneous guidance. “Thanks to the development of AI, the distant dream of self-driven cars has become a reality now. These intelligent vehicles use sensors, cameras and sophisticated software algorithms to drive themselves without human intervention on the road. “The systems have tremendously reduced crash incidents associated with human error as they can analyse huge amounts of data in a oDriver-assist systems could analyse dangerous conditions and reduce crash incidents, says expert █ BY JOSHUA PURUSHOTMAN [email protected] split-second.” Manjit said a major component of the rise in the automotive industry involving AI is the potential of improving road safety. “The World Health Organisation estimates that globally, close to 1.35 million people die annually due to motor vehicle crashes. The incorporation of AI technology in vehicles can make a substantial difference by actively preventing collisions and reducing their severity.” Manjit said AI-powered smart traffic management systems could also optimise traffic flow. “Adjusting traffic signals based on realtime data can reduce congestion and consequently, lower the likelihood of road crashes while integrating adaptive traffic management can change road conditions.” He said AI driver assistance systems offer another layer of safety, with features such as lane departure warnings, collision avoidance and adaptive cruise control that can alert drivers to potential dangers. Manjit said the implementation of AI-facilitated vehicle-to-everything communication enables real-time exchange of information between vehicles, infrastructure and pedestrians, adding that such communication helps in avoiding collisions, particularly at intersections, by providing timely warnings. Behavioural analysis and monitoring through AI could also be used to assess driver behaviour by analysing data from vehicles. “Identifying patterns associated with risky driving allows for targeted interventions, such as providing feedback to drivers and insurers, ultimately encouraging safer driving habits.” Manjit said emergency response optimisation is another area AI can make a significant impact on road safety. He said AI algorithms can predict accident severity and enable quicker dispatch of appropriate resources for emergency response. Such timely assistance can reduce the impact of crashes and enhance overall road safety. “Ultimately, Malaysia needs a comprehensive strategy that integrates all these AI applications with effective policies, public awareness campaigns and law enforcement efforts. “Collaborative efforts between government agencies, the private sector and technology developers can ensure the successful implementation and sustainability of these initiatives and contribute significantly to reducing vehicle crashes and fatalities in Malaysia.” Flood hit schools resume operations PUTRAJAYA: Almost all educational institutions under the Education Ministry (MOE) that were affected by floods, as well as those that served as temporary relief centres, have resumed normal operations. Minister Fadhlina Sidek said between Nov 11 last year and Monday, a total of 133 primary schools, 23 secondary schools and one Permata centre in Kelantan, Pahang, Terengganu, Selangor, Sabah, Sarawak, Johor and Perak were impacted by the Northeast monsoon floods. She said during the same period, 207 educational institutions under MOE in 10 states, namely Kelantan, Terengganu, Pahang, Perak, Selangor, Malacca, Negeri Sembilan, Johor, Kedah and Sabah were turned into relief centres, including 173 primary schools, 33 secondary schools and one vocational college. As at 4pm on Monday, the MOE Flood Reporting Dashboard indicated that nine primary schools and one secondary school in Kelantan, Pahang and Sarawak were still affected by floods, she told a press conference yesterday, adding that one primary school each in Kelantan and Pahang were still serving as relief centres. “The relevant state education departments and district education offices have taken appropriate measures to ensure schools can operate normally, such as relocating stock or surplus furniture and textbooks from schools within the same district to those in need.” Fadhlina also said the state education departments and district education offices are assessing the damage at flood affected educational institutions under MOE. “According to preliminary reports, the estimated damage from this round of floods exceeds RM1 million, involving furniture, fences and physical structures in the affected states, as well as immovable assets in Kelantan, Terengganu and Pahang.” She said MOE also assists the affected institutions, teachers and personnel, such as in the case of a student who drowned in Kelantan, and a takaful payment of RM5,500 was given to the victim’s family. Fadhlina added that each flood affected school or those that served as relief centres would also receive RM2,000 from the Tun Hussein Onn Teachers Foundation, in addition to volunteers from MOE helping with postflood cleaning operations. – Bernama Students at Sekolah Menengah Ugama Arab Nurul Huda in Tumpat, Kelantan moving tables to higher ground during cleaning operations at the school yesterday. – BERNAMAPIC
WEDNESDAY | JAN 3, 2024 6 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Malaysian drug dealer held in Laos oSuspect was key player in Golden Triangle and had RM11.45 million assets in four Thai districts BANGKOK: A Malaysian fugitive wanted in Thailand for drug smuggling was held in a Thai-Laos joint operation last week. Thai police said the 39-year-old man, an alleged drug dealer and key member of a drug syndicate, had been in hiding in Laos. Thai national police assistant chief Lt-Gen Panurat Lakboon said the Office of the Narcotics Control Board had been investigating the man, a suspected drug trafficker who played a key role as procurer and coordinator in drug trade in the Golden Triangle area since 2006, adding that he was arrested in Laos on Dec 29. “The suspect had been working with drug networks across Thailand, Malaysia, China, Singapore and Laos. He also used Thailand for both money laundering and as a transit point for smuggling drugs to countries that included Malaysia, Taiwan and Australia. “The arrest was a result of the continuous investigation and close coordination between Thai, Malaysian and Laotian enforcement agencies.” Panurat said the crackdown was part of Prime Minister Srettha Thavisin government’s ongoing operation to address drug related crime. He also said investigators identified the man to be the main suspect behind a major drug bust in June last year, Duo with 10kg syabu detained ALOR SETAR: Kedah police arrested two Thai nationals and seized 10.6kg of syabu hidden in a spare tyre of a pickup truck at Kampung Baru Balai Pos in Ayer Hitam on Dec 28. State police chief Datuk Fisol Salleh said the smuggling attempt was uncovered when police inspected a vehicle used by the two men, leading to the discovery of the drugs, worth RM349,800. He said both suspects, aged 25 and 41, initially tried to flee when they realised the presence of the authorities but were successfully apprehended after a scuffle. “Upon inspection of the vehicle, we found 10 green packets containing clear plastic bags filled with syabu hidden in the spare tyre under the rear of the vehicle.” Fisol said the drugs are believed to have been smuggled from neighbouring countries to be distributed locally. The suspects have been remanded for seven days to assist investigations under Section 39B of the Dangerous Drugs Act 1952 and both tested positive for methamphetamine. On the New Year’s Eve special operation, Fisol said a total of 1,372 vehicles were inspected and 1,055 summonses were issued for various traffic offences, while 223 vehicles were impounded. – Bernama Zayn murder case ongoing: Police chief KUALA LUMPUR: Police have not classified the murder of autistic child Zayn Rayyan Abdul Matiin as a “No Further Action” case, despite the absence of new leads, said Selangor police chief Datuk Hussein Omar Khan. He said police are still investigating to find new clues to solve the case. “There is no new development in the case but the investigation continues.“ The six-year-old boy was reported missing on Dec 5 last year in Damansara Damai, before his body was found near a stream about 200m from his house at Apartment Idaman the next day. The child is believed to have been killed, after an autopsy found injuries to the neck and body, prompting police to investigate the case under Section 302 of the Penal Code. Police have also sought help from Interpol to review information and evidence obtained during the investigations. – Bernama Man found dead in burnt car IPOH: A man, believed to be an Orang Asli in his 50s, was found dead in a burnt car at Jalan Batu 23 in Tapah on Monday. Perak Fire and Rescue Department director Sabarodzi Nor Ahmad said they received a distress call regarding the incident at 10.04pm. A team of firefighters from the Tapah Fire and Rescue station was dispatched to the scene and found the fire involved a car, which was 50% burnt and destroyed. “A male victim was found burnt in the back seat of the car. The fire was put out by the public before the firefighters arrived.” Saiyani said the team conducted a risk assessment and gathered information before extricating the victim’s remains, which were handed to police for further action. Tapah district police station chief Supt Mohd Naim Asnawi said the victim’s body was sent to a hospital for an autopsy to ascertain the cause of death. – Bernama Six nabbed over stunts on road SEREMBAN: Six men, including three students, were detained by police for riding motorcycles dangerously and doing “Superman” stunts on a road in Port Dickson. District police chief Supt Aidi Sham Mohamed said the six, aged between 17 and 28, were detained during Op Samseng Jalanan held from 9pm to 4am in conjunction with the 2024 New Year eve celebrations. “The action of the group can pose danger to themselves and other road users. We also impounded the six motorcycles at the Port Dickson police headquarters for investigations.” – Bernama ‘No foul play in death of mother, daughter’ GERIK: No elements of crime were found in the death of a senior citizen and her disabled daughter, who were burnt to death in a fire at Kampung Air Tarung in Gerik on Monday. District police chief Supt Zulkifli Mahmood said according to a witness, Mohamad Abd Latif, 84, who is also the husband and father of the victims, the fire had started in a kitchen of a hut situated in an orchard at 4am. “Before seeking help from residents, Mohamad also tried to rescue the victims but he failed. Investigations also revealed the hut was far away from the main road and a dirt track that leads to the orchard.” Zulkifli said autopsies on the remains of the victims were conducted at Gerik Hospital and confirmed the cause of death was due to burn injuries, adding that the case has been classified as sudden death. – Bernama Cops to probe coffee shop shooting SIBU: Sibu police will conduct a thorough investigation into a shooting in a coffee shop at Jalan Wong King Huo on Monday, in which three men were injured. Police found 10 bullet casings that were fired by two suspects, who wore motorcycle helmets during the incident at 4.55pm. “We received a call from a man at 5.41pm saying there was a shooting at the coffee shop. Two shooters arrived on two motorcycles and one of them fired several shots at the victims at close range while another one shot a few rounds from 20m away,” said state police chief ACP Zulkipli Suhaili. The first victim suffered a gunshot wound on his left and right thigh and right leg, while two of his friends were shot in the left and right shoulder. “The victims were rushed to a private hospital and are in stable condition,” he said, adding that police have formed a special investigation team to probe the case under Section 307 of the Penal Code. Zulkipli said except for one victim, the other men at the table had records under Section 148 and 324 of the Penal Code. He advised the public not to sensationalise the case and urged them to contact investigation officer ASP Mingat Bakil at 019-886 7978 or the nearest police station if they have any information. – Bernama Fisol (centre) with Narcotics Criminal Investigation Department head ACP Mohd Taufik Maidin showing the seized syabu, which was hidden in a spare tyre of a pickup truck. – BERNAMAPIC including the seizure of 998kg of crystal methamphetamine and the arrests of seven in Ratchaburi province. A warrant was subsequently issued for him in August the same year, Bernama reported. Later, Thai authorities seized the suspect’s extensive assets, including land with a building, two condominium units, three yachts, two cars, three motorbikes, firearms, cash and other valuables spread across Bangkok, Trat, Chiang Rai and Chon Buri. The total estimated value of the seized assets is 85 million baht (RM11.45 million) Since 2018, authorities have arrested 35 drug suspects and recovered 4.4 tonnes of crystal methamphetamine, 493gm of heroin and 12 tonnes of cocaine. Most cases occurred in Malaysia. Local authorities have confiscated assets worth RM418 million and are preparing to seize eight businesses owned by network members.
WEDNESDAY | JAN 3, 2024 7 Race against time after deadly Japan quake KANAZAWA: Japanese rescuers battled against the clock and powerful aftershocks yesterday to find survivors of a major earthquake that struck on New Year’s Day, killing at least six people and leaving a trail of destruction. The 7.5-magnitude quake, which hit Ishikawa prefecture on the main island of Honshu, triggered tsunami waves over a metre high, toppled buildings, caused a major port fire and tore apart roads. As daylight arrived, the scale of the destruction in Ishikawa emerged with buildings still smouldering, houses flattened and fishing boats sunk or washed ashore. “Very extensive damage has been confirmed, including numerous casualties, building collapses and fires,” Prime Minister Fumio Kishida said after a disaster response meeting. Smoke rising from an area following a large fire in Wajima, Ishikawa prefecture. – AFPPIC oExtensive damage confirmed, including numerous casualties, building collapses and fires, says Japan PM “We have to race against time to search for and rescue victims of the disaster.” Police said six people had been killed although the toll was almost certain to climb. The Kyodo news agency reported that 13 people had died, including seven in the badly hit port of Wajima. Aerial news footage showed devastation from a major fire at the port, where a seven-storey building collapsed. Almost 45,000 households were without power in the region which saw temperatures touch freezing overnight, the local energy provider said. Many cities were without running water. The US Geological Survey (USGS) said the quake had a magnitude of 7.5. Japan’s meteorological agency measured it at 7.6, and said it was one of more than 150 to shake the region through yesterday morning. Several strong jolts were felt early yesterday, including one measuring 5.6 that prompted national broadcaster NHK to switch to a special programme. “Please take deep breaths,” the presenter said, reminding viewers to check for fires in their kitchens. On Monday waves at least 1.2m high hit Wajima and a series of smaller tsunamis were reported elsewhere. But warnings of much larger waves proved unfounded and yesterday Japan lifted all tsunami warnings. Images on social media showed cars and houses in Ishikawa shaking violently and terrified people cowering in shops and train stations. Houses collapsed and huge cracks appeared in roads. The fire in Wajima engulfed a row of houses, video footage showed, with people being evacuated in the dark, some with blankets and others carrying babies. A duty officer at Wajima Fire Department said they still were being overwhelmed yesterday by rescue requests and reports of damages. A total of 62,000 people had been ordered to evacuate, according to the fire and disaster management agency. About 1,000 people were staying at a military base, the defence ministry said. Defence Minister Minoru Kihara said 1,000 military personnel were preparing to go to the region, while 8,500 others were on standby. Around 20 military aircraft were dispatched to survey the damage. Monday’s quake shook apartments in the capital Tokyo about 300km away, where a public New Year greeting event that was to be attended by Emperor Naruhito and his family members was cancelled. Several major highways were closed around the epicentre, Japan’s road operator said, and bullet train services from Tokyo were also suspended. Japan experiences hundreds of earthquakes every year and the vast majority cause no damage. The country has strict regulations intended to ensure buildings can withstand strong quakes and routinely holds emergency drills. – AFP South Korean opposition leader stabbed in neck SEOUL: South Korean opposition party leader Lee Jae-myung was stabbed in the neck yesterday while talking to reporters in the port city of Busan, Yonhap news agency reported. Lee was walking in a crowd of journalists after visiting the site of a new airport when a man pushed through and lunged at him, striking him in the neck, footage on South Korean television channels showed. Lee was seen collapsing to the ground as people rushed to aid him. One man was seen pressing a handkerchief on Lee’s neck. Police officials and bystanders were seen wrestling the attacker down. Yonhap said the assailant has been arrested. Chief of the Democratic Party, Lee lost to conservative Yoon Suk Yeol in a tight presidential race in 2022. A former child factory worker who suffered an industrial accident as a teenage school drop-out, Lee rose to political stardom partly by playing up his rags-to-riches tale. But his bid for the top office has been overshadowed by a string of scandals. Lee avoided arrest in September when a court dismissed a request from the prosecution for him to be taken into custody pending trial on various corruption charges. He still faces trial on charges of bribery in connection with a firm that is suspected of illicitly transferring US$8 million (RM36.8 million) to North Korea.– AFP Lee being attended to after being attacked. – AFPPIC B R I E F SHACKERS HIT COURT RECORDING DATABASE SYDNEY: Hackers accessed the court recordings database in Australia’s Victoria state and disrupted the audio-visual in-court technology network, impacting recordings and transcription services, an official said yesterday. Recordings of some court hearings between Nov 1 and Dec 21, 2023 may have been stolen, Court Services Victoria CEO Louise Anderson said in a statement. Some hearings before Nov 1 may also have been affected, she said. “The potential access is confined to recordings stored on the network. No other court systems or records, including employee or financial data, were accessed,” Anderson said. Hearings in January would proceed after the affected network was isolated and disabled, and court officials were working closely with the government’s cyber security experts. Court Services Victoria did not reveal whether it received any ransomware demands. – Reuters REBEL GROUP CELEBRATES UPRISING CARACOL DOLORES HIDALGO: Mexican revolutionary indigenous group, Zapatista Army for National Liberation (EZLN), is celebrating the 30th anniversary of their armed uprising that ended up becoming an early symbol for the supporters of the anti-globalisation movement. In 1994, Subcomandante Marcos led armed insurgents in the poor, southern state of Chiapas in a “declaration of war” against the government the day it opened borders to free trade. Named for Mexican revolutionary hero Emiliano Zapata, the EZLN and Zapatista communities invited others to join them and celebrate what they described as the “anniversary of the beginning of the war against oblivion”. – Reuters Japan airlines plane catches fire on airport runway TOKYO: A Japan Airlines plane burst into flames on the runway of Tokyo’s Haneda Airport yesterday after apparently colliding with a coast guard aircraft, media reports said. Images on broadcaster NHK showed the plane moving along the runway before a large explosion of orange flames exploded from beneath and behind it. All 367 passengers and 12 crew onboard the Airbus plane were evacuated, NHK reported. Those onboard included eight children, Kyodo News reported. NHK reported that one of the six crew members on the coast guard plane was safe but that the other five were unaccounted for. The cause of the incident was not immediately clear, but television reports said that the Airbus collided with a coast guard aircraft. The Jiji news agency reported the coast guard plane was scheduled to leave to help with rescue efforts following a massive earthquake in central Japan on Monday. Reports said that the plane had just arrived from Sapporo airport on the northern Japanese island of Hokkaido. JAL said the passenger plane either collided with the other aircraft on a runway or a taxiway after it touched down, Kyodo reported. Footage apparently shot by a passenger inside the aircraft showed flames coming from underneath it before the cabin fills with smoke. AFP was unable to verify the footage.
WEDNESDAY | JAN 3, 2024 8 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper B R I E F SHK TYCOON PLEADS NOT GUILTY TO CRIMES HONG KONG: Jailed pro-democracy tycoon Jimmy Lai pleaded not guilty in a Hong Kong court to “sedition” and “collusion” charges yesterday, as his trial under a national security law continued into the new year. The charges against Lai, founder of the now-shuttered popular Chinese-language tabloid Apple Daily, revolve around the newspaper’s publications, which supported prodemocracy protests and criticised Beijing’s leadership. Lai, 76, is also accused of “collusion” for calling for international sanctions against Chinese and Hong Kong officials. Lai was originally charged with one count of “conspiracy to produce seditious publications”, two counts of “conspiracy to collude with foreign forces to endanger national security” and one count of “collusion”. – AFP STUDENT FOUND AFTER ‘CYBER KIDNAPPING’ SCAM LOS ANGELES: A Chinese exchange student who fell victim to a “cyber kidnapping” scam in which his parents were extorted for US$80,000 (RM368,320), was found alive but “cold and scared” in a tent in the Utah wilderness, police said. Kai Zhuang, age 17, was reported missing on Thursday after his parents in China told officials at his host high school in Riverdale, Utah that he appeared to have been kidnapped and a ransom had been requested. The victims comply under the belief their family will otherwise be harmed. – AFP Zelensky says Russia suffering heavy losses NEW YORK: Ukrainian President Volodymyr Zelensky said Russian forces are suffering heavy losses and the notion that Moscow is winning the nearly two-year-old war is only a “feeling” not based on reality. “Thousands, thousands of killed Russian soldiers, nobody even took them away,” he told The Economist magazine in an interview published on Monday, referring to fighting around the besieged eastern town of Avdiivka which he visited last week. He provided no evidence to back up his assertion but Western military analysts agree Russia is paying a heavy price in men and equipment for relatively minor gains in eastern and southern Ukraine. There was no response to a request for comment from Russian officials on Zelenskiy’s remarks. Russian officials have said Western estimates of Russian death tolls are vastly exaggerated and almost always underestimate Ukrainian losses. Russian President Vladimir Putin said last month Russia’s position was improving and it would not stop what he calls the “special military operation” until its objectives, including Ukraine’s “denazification, demilitarisation and its neutral status”, have been achieved. Russian officials have dismissed as a failure a Ukrainian counteroffensive launched in mid-2023 in the east and south. Zelensky acknowledged that the counteroffensive backed by advanced Western weapons may not have succeeded “as the world wanted. Maybe not everything is as fast as someone imagined”. In contrast, he hailed the “huge result” of Ukrainian forces breaking through a Russian Black Sea blockade, enabling grain exports by way of a new route along its southern coast. He said if Ukraine lost the war, Russia would be encouraged to advance against other countries because “Putin feels weakness like an animal, because he is an oMoscow paying heavy price in men, equipment for minor gains in eastern and southern Ukraine, says analysts animal. He senses blood, he senses his strength”. With support for Ukraine facing obstacles in the US and European Union, more needed to be done to persuade the world that defending Ukraine meant defending the world, Zelensky said. “Maybe something is missing. Or maybe someone is missing,” he told the magazine. “Someone who can talk about Ukraine as a defence of all of us.” Zelensky acknowledged that “mobilisation of Ukrainian society and of the world” that was so strong at the start of Russia’s invasion is not there anymore. Ukraine saw tens of thousands of men volunteer to fight in the first months of Russia’s invasion, but that enthusiasm has waned 22 months later. “That needs to change. Mobilisation is not just a matter of soldiers going to the front. It is about all of us. It is the mobilisation of all efforts. This is the only way to protect our state and de-occupy our land,” he said. Zelensky has embarked on a flurry of international trips trying to shore up Western support. At home, he has repeatedly urged Ukrainians to do their duty. – Reuters Opposition on the run from govt crackdown DHAKA: As general elections approach this week in Bangladesh, opposition leader Abdul Moyeen Khan said he had to hide out in the homes of a string of acquaintances until nominations closed, trying to escape a government crackdown. The former minister and his Bangladesh Nationalist Party (BNP) are not running in the Jan 7 vote, in which Prime Minister Sheikh Hasina is chasing a fourth straight term, despite a bleak economy that needed an IMF bailout last year. “We’re not even in the election, but they are still not sparing us,” the grey-haired Abdul Moyeen, 77, said in Dhaka, the capital, on his return home in December after nominations closed and removed any risk that he could pose an electoral threat. His party boycotted the vote after Hasina refused to cede power to a caretaker government to run the poll. Now it says 10 million party workers are on the run after the arrests of nearly 25,000 following deadly anti-government protests on Oct 28. “Police and other government agents were hunting for our leaders, particularly in their homes,” said Abdul Moyeen. “The situation instilled fear in our minds.” Conditions were worse than at the time of the last election in 2018, when attacks on party workers kept him from holding even a single rally, he added. Bangladesh’s interior minister, Asaduzzaman Khan, did not immediately respond to a Reuters request for comment. Sheikh Hasina and her Awami League have repeatedly condemned the BNP as troublemakers out to sabotage the elections, rebuffing warnings by rights groups Amnesty International and Human Rights Watch (HRW) that the crackdown aimed to subdue the opposition. The BNP contested the last election but kept out of the fray in 2014, and New York-based HRW has said Bangladeshis will again be denied the right to freely choose their leaders. A Rohingya man with his child at a temporary shelter following their arrival in North Sumatra province. – REUTERSPIC Over 140 Rohingya arrive in Indonesia’s North Sumatra JAKARTA: More than 140 Rohingya have arrived in Indonesia’s North Sumatra province over the weekend, state news agency Antara reported on Monday, adding to a surge of arrivals of members of the Myanmar Muslim minority to Indonesia. The group, consisting mostly of women and children, arrived by boat in North Sumatra’s Deli Serdang area late on Saturday, according to the Antara report that cited a police officer. The arrivals came after the military said last week its navy vessel had driven away a boat carrying Rohingya in waters further north off Sumatra, as the persecuted ethnic minority faces growing hostility and rejection in Indonesia. More than 1,500 Rohingya have landed in Indonesia since November, according to data from the United Nations’ refugee agency. For years Rohingya have been leaving Myanmar, where they are generally regarded as foreign interlopers from South Asia, denied citizenship and subjected to abuse. They depart usually for Indonesia Malaysia from November to April, when the seas are calmer. Indonesia, the world’s largest Muslimmajority country, is not a signatory to the 1951 United Nations Convention on Refugees, but has a history of taking in refugees if they arrive. – Reuters
WEDNESDAY | JAN 3, 2024 9 Israel signals tacticsshift, cuts back on troops oMore localised ‘mopping up’ operations as fighting still rages in Gaza JERUSALEM: Israel pulled tanks out of some Gaza City districts on Monday, residents said, as it announced plans to shift tactics and cut back on troop numbers, but fighting raged elsewhere in the Palestinian enclave along with intense bombardment. Israel said the war in Gaza, which has reduced much of the territory to rubble, killing thousands and plunging its 2.3 million people into a humanitarian disaster, has many months to go. But it also signaled a new phase in its offensive, with an official saying on Monday the military would draw down forces inside Gaza this month and shift to a months-long phase of more localised “mopping up” operations. A US official said the decision appeared to indicate the start of a shift to lower-intensity operations in the north of the Palestinian enclave. The Israeli official said the troop reduction would allow some reservists to return to civilian life, shoring up Israel’s war-battered economy, and free up units in case of a wider conflict in the north with Lebanon’s Iranbacked Hezbollah. Artillery fire between Hezbollah and Israel has rattled the border since the start of the Gaza conflict, with Israel’s military saying it carried out an air strike on Monday. Residents and security sources said Israeli raids targeted houses in the Lebanese village of Kafr Kila near the border, killing three people. They identified them as rescuers, but Lebanon’s Hezbollah movement later said on its Telegram account on Monday that the three were fighters with the movement. The Israeli official said the situation on the Lebanese border “will not be allowed to continue. This coming six-month period is a critical moment”. Any new escalation carries risks for a wider regional war. Tehranbacked fighters in Yemen have attacked Red Sea shipping, drawing a US military response and an Iranian warship has sailed into the waterway, Iranian media reported on Monday. The scale of suffering in Gaza, where the bombardment has driven almost all inhabitants from their homes, has led Israel’s Western allies, including the US, to urge it to scale down its offensive. Residents of Sheikh Radwan district in Gaza City, in the northern part of the enclave that Israel’s offensive focused on first, said tanks had withdrawn after what they described as the most intense 10 days of warfare since the conflict began. “The tanks were very near. We could see them outside the houses. We couldn’t get out to fill water,” said Nasser, a father of seven living in Sheikh Radwan. Tanks also pulled out of Gaza City’s al-Mina district and parts of Tel al-Hawa district, while retaining some positions in the suburb controlling the enclave’s main coastal road, residents said. However, tanks remained in other parts of northern Gaza and health officials said some people trying to return to their homes in a southern district of Gaza City had been killed by Israeli fire on Sunday. – Reuters Army investigating soldier over killing of Gazan JERUSALEM: The Israeli military said yesterday it is investigating a soldier suspected of shooting dead a Palestinian who had been captured and detained by troops in the Gaza Strip. “The terrorist was handed over to the supervision of a soldier, who, under suspicion, allegedly shot him, resulting in his death,“ the army said of the Sunday incident. “In light of the preliminary information, a military police investigation has been initiated to examine the circumstances of the shooting,“ it added in a statement sent to AFP. Hundreds of Palestinians have been detained since war broke out in October between Israel and Hamas. Last month, the militant group called for an international investigation into “summary executions” of dozens of Gazans. The army said at the time that it was “unaware of” any such killings. The push for a probe followed the announcement by the United Nations human rights office that it had received “disturbing” reports that Israeli troops had “summarily killed” at least 11 unarmed Palestinians in a possible war crime in Gaza. Israeli troops also mistakenly shot dead three Israeli hostages in Gaza, while at least 18 soldiers have been killed in friendly fire incidents, according to military figures. Several Palestinians have also died in custody over the past few weeks, a number of them in southern Israel, Israeli media reported. The Israeli army has said that it is investigating the deaths of detainees captured during military operations in Gaza. The army came under severe condemnation from human rights groups early last month after Israeli television showed scores of Palestinian men in military custody stripped naked on a Gaza street. US carrier sent to Mediterranean returning to base WASHINGTON: The US aircraft carrier USS Gerald R. Ford, deployed to the eastern Mediterranean, will return to the US “in the coming days”, the Navy said Monday. Sent to “contribute to our regional deterrence and defence posture”, the carrier will “redeploy to its home port as scheduled to prepare for future deployments”, the Navy said in a statement. “The Department of Defence continually evaluates force posture globally and will retain extensive capability both in the Mediterranean and across the Middle East,” the statement added. The Navy said it was “collaborating with Allies and partners to bolster maritime security in the region”. It noted that the Defence Department will continue to rely on the presence of its forces in the region, including the USS Dwight D. Eisenhower carrier strike group, “to deter any state or non-state actor from escalating this crisis beyond Gaza”. A new generation aircraft carrier, the USS Gerald R. Ford is a 100,000-ton nuclearpowered ship equipped with new technologies. Washington provided military support to Israel and reinforced its forces in the region, including the USS Gerald R. Ford and other warships. – AFP B R I E F SCHILD AMONG 8 KILLED IN SYRIA CLASHES BEIRUT: Eight civilians, including a child, were killed on Monday during exchanges of fire between the army and rebels in northwestern Syria, with 19 others wounded, a war monitor said. The fighting pitted the army of Syrian President Bashar alAssad against Hayat Tahrir al-Sham (HTS), an Islamist group led by AlQaeda’s former Syria branch. “An elderly man, a woman and her young daughter were killed and 10 other civilians were wounded in a bombardment by the HTS on the villages of Nubul and Zahraa, in a part of Aleppo province controlled by the Syrian regime,” the Syrian Observatory for Human Rights said. HTS and other groups control swathes of Idlib province and parts of neighbouring Aleppo, Hama and Latakia provinces. The Syrian army retaliated by bombing residential areas of Darat Izza town in Aleppo, killing three civilians and wounding nine others, the Observatory said. Army artillery fire killed two other civilians in the Aleppo village of Burj Haidar, the Observatory said. – AFP GUNMEN OPEN FIRE ON VILLAGERS IN MANIPUR GUWAHATI: At least three people were killed and five seriously injured when gunmen in camouflage fatigues opened fire on villagers in India’s restive northeastern state of Manipur, officials said yesterday, as sporadic violence continued in the region. At least 180 people have died since fierce fighting broke out between members of the majority Meitei and minority Kuki communities in the state in May, following a court order suggesting privileges granted to Kukis also be extended to Meiteis. The latest violence was reported from the Lilong area of Thoubal district on Monday when the group in camouflage fatigues opened indiscriminate fire on locals. “Three people died of bullet wounds while five others are in hospital with multiple injuries,“ a senior police official told Reuters by phone. Palestinian children sit in a wheelchair while they make their way to collect water amid the ongoing conflict. – REUTERSPIC
10 WEDNESDAY | JAN 3, 2024 READ OUR HERE /thesun Malaysian Paper Enclosed is my payment of RM payable to SUN MEDIA CORPORATION SDN BHD. Please WhatsApp your bank-in slip to 0182929936 or email to [email protected] *Not inclusive of vendor service charge Stay informed with the latest news and trends All the best articles from Monday to Friday 32 pages full colour Subscribe now for Monday-Friday copies of theSun newspaper 6 month subscription (128 issues) for only RM110* (Normal price RM128) 1 year subscription (258 issues) for only RM200* (Normal price RM258) 1 year subscription at normal price RM258* (258 issues) + RM50 administration fee to get 2nd year free PERSONAL PARTICULARS Name: NRIC: Race: Malay Chinese Indian Others Profession: Commencement date: Delivery Address: Residence Ofice Postcode: State: Tel: Mobile No: E-mail: DETAILS OF CURRENT NEWS VENDOR (IF ANY) Vendor name: Contact no: For your convenience, you may call or send in your subscription particulars via any of the following: Tel: KL/PJ 03-7781 4000, 03-7784 6688 (9.30am - 5pm, Monday to Friday) Fax: 03-7781 4484 Post: P.O. 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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 Ensuring senior-friendly living space I N my younger years, the concept of retirement felt distant, and I was often overwhelmed by the need to set realistic goals and craft strategies for a secure future. At that time, my focus was on bolstering income and instilling a habit of saving money, a decision that now proves invaluable as retirement nears. Most retirees find themselves with around half their previous income, making meticulous planning of current income, expenses and savings highly important. Approaching retirement age prompts a critical consideration: maximising the utility of retirement funds. Initiating this involves striving for a debt-free status and, where feasible, considering downsizing as a strategic step towards a softer transition. Among the paramount aspects of retirement planning is our living space strategy. Investing in preparing our homes for retirement deserves prioritisation as this will become the focal point of our daily lives post-retirement. Ensuring our living space is comfortable and senior-friendly is of utmost importance. As affirmed by the World Health Organisation, the global median age is on the rise, a trend mirrored in Malaysia. The country’s older demographic is expanding rapidly. In 2007, the Statistics Department recorded 1,195,480 individuals aged 65 and above, constituting 4.4% of the population. According to the National Population and Family Development Board, Malaysia is projected to achieve an aged population status by 2035, when 15% of its populace will be 60 or older – myself included as I embark on retirement. A concerning trend among older Malaysians is home accidents, often resulting from falls. Statistics indicate a prevalence of falls, with 31% of participants reporting incidents, and 4.4% experiencing multiple falls in the preceding year. Slips account for 49% of these falls, a largely preventable issue. Several threats lurk within homes that significantly heighten the risk of tripping and stumbling among retirees. Factors such as slippery floor surfaces, irregular tiles and inadequate lighting can amplify these dangers. Bathrooms, often characterised by smooth surfaces and persistent dampness, stand out as hotspots for slips and falls. The absence of handrails or grab bars in critical areas, such as staircases and bathrooms, further compounds the risk of home accidents among seniors. Household mishaps involving elements such as faulty electrical wiring, collisions with furniture or cluttered pathways are frequently observed. These seemingly minor issues pose a significant threat to retirees due to reduced balance and slower reaction times, making them more susceptible to injuries. Addressing these hazards within the home environment is crucial. Consider adopting a minimalist lifestyle, reorganising living spaces to create unobstructed pathways and reducing the risk of tripping. Dispose of unnecessary furniture, outgrown clothing or excessive keepsakes – while retaining cherished mementoes and personal belongings. Implement simple renovations, such as installing nonslip tiles and handrails in critical Investing in preparing our homes for retirement deserves prioritisation as this will become the focal point of our daily lives post-retirement. – ADIB RAWI YAHYA/THESUN COMMENT by Prof Dr Nor Adinar Baharuddin areas like bathrooms and staircases. For those experiencing reduced strength, poor balance, dizziness or impaired vision, installing grab handrails can provide crucial support and stability, especially when navigating the shower or bathtub. Proper lighting plays an important role in reducing these risks, enhancing safety and promoting a more senior-friendly environment. Well-placed lights not only draw attention to potential hazards but also minimise blind spots and vulnerable areas within the living space. Consistent monitoring and periodic adjustments to the home layout can significantly contribute to accident prevention and the overall well-being of retirees. With advancements in technology and healthcare, longer lifespans are anticipated. Planning for a retireefriendly and safe living space becomes pivotal in averting homerelated injuries and effectively managing retirement funds. This proactive approach is indispensable for a fulfilling, secure and autonomous retirement. The writer is a professor in Periodontics and the Deputy Dean of Research at the Faculty of Dentistry at Universiti Malaya. Comments: [email protected]
11 WEDNESDAY | JAN 3, 2024 Upskilling creates win-win situation I N the evolving landscape of the modern workplace, upskilling has emerged as a powerful catalyst for growth and success, fostering a mutually beneficial relationship between employers and employees. As industries continue to change at an unprecedented pace, the ability of employees to adapt and acquire new skills has become essential. In this dynamic environment, upskilling serves as a driving force. Advantages for employees We have heard of how upskilling is beneficial for employees. In today’s world of work, upskilling is not a nice “extra” to have but an essential part of one’s professional life. Here are some of the benefits for employees: Adaptability to new technologies A World Economic Forum report predicted that machines will be doing half of all tasks by 2025. As technology continues to advance at an unprecedented pace, it is crucial for employees to constantly develop new skills to stay up to date with the latest tools and software. Upskilling is essential as it enables employees to adapt to new technologies and utilise them to their fullest potential, thus remaining relevant in an evolving and digitalised world of work. Better job satisfaction Employee satisfaction is influenced by various factors, including salaries, work-life balance, work environment and opportunities for skills development. Gallup’s State of the Workplace 2023 Report found that over half of those currently employed are actively or passively seeking a new job. The top factors individuals are looking for in their next job are increased pay, improved well-being and opportunities to grow and develop. Upskilling staff is a great way to show employees that they are valued and have clear career progression goals. This, in turn, can boost morale and improve job satisfaction. Career advancement pathway Employers are constantly looking for individuals with updated skills and knowledge to meet the demands of their evolving business needs. By upskilling and reskilling themselves, employees are more marketable to potential employers and have more opportunities for career advancement and higher-paying roles. Benefits for employers A common fear that some employers may have when it comes to upskilling their workers is that they may leave. On the contrary, investing in their employees’ professional growth will reap them many rewards. Improved employee retention A survey by Better Buys found that businesses that support employees’ professional development experience a 34% higher retention rate than those that do not. The same study also found that employees who have access to professional development opportunities are 15% more engaged at work. Upskilling and reskilling opportunities, supported by employee engagement, increase job satisfaction and employee loyalty. Increased return on investment Encouraging a culture of continuous learning and dedicating resources to employee development tools can yield positive business outcomes for organisations. While it may be challenging to quantify every dollar invested directly, an upskilling programme may contribute towards confidence-building within an organisation as it provides a clear and real-life action plan. Reskilling employees to suit current and emerging trends can also contribute to more resilient organisations. McKinsey highlighted how reskilling the workforce was key to organisations thriving after the pandemic. Attracting new talent Investing in employee development and career advancement not only boosts employee morale but also transforms them into strong brand advocates. When employees feel valued, they are more likely to recommend the organisation to their network, including friends, former colleagues and family, thereby broadening the talent pool for future recruitment. Conclusion Upskilling is a win-win situation, benefiting employers and employees. By investing in upskilling, employers can ensure the continuous growth and development of their workforce, stay competitive in the market and demonstrate their support for employee growth. At the same time, employees who are upskilled can enhance their job performance, progress toward their career goals and secure their future in an ever-changing job market. Therefore, businesses must prioritise upskilling as part of their talent development strategy to achieve long-term success. The writer is the founder and managing director of integrated talent solutions company Aisling Group. Comments: [email protected] Crucial role of neighbourly interactions IN a world that often seems divided by differences, neighbourly social interactions stand as a beacon of hope, especially in a multiracial and multicultural country such as Malaysia. This nation is renowned for its rich tapestry of ethnicities, languages and cultures. Malays, Chinese, Indians and various indigenous groups coexist, creating a mosaic of traditions and beliefs. This diversity is an asset, enriching our nation in countless ways. Neighbourly social interactions serve as the glue that binds this diverse nation together. These interactions transcend differences, fostering understanding, empathy and unity among communities. Regular interactions with neighbours build trust, which is vital in a multiracial society. When people know and trust each other, they are more likely to resolve conflicts amicably. Neighbourly interactions provide opportunities for cultural exchange. Sharing traditions, festivals and meals with neighbours from different backgrounds promotes tolerance and appreciation. Strong neighbourly bonds create resilient communities that can come together in times of crisis, be it natural disasters or social challenges. Close-knit neighbourhoods often engage in small-scale economic activities, supporting local businesses and enhancing the community’s economic well-being. On the flip side, when neighbourly interactions break down, the consequences can be dire. Lack of communication can lead to misunderstandings, perpetuating stereotypes and biases. Isolated communities are more susceptible to extremist ideologies and less likely to seek peaceful resolutions to disputes. Neglected conflicts can escalate, potentially leading to suspicion, mistrust or even worse. A fractured society cannot harness its full potential for progress and development. Communities divided along racial or ethnic lines can erode the social fabric of the nation. What can be done to ensure neighbourly interactions thrive in our multiracial society? Encouraging community events, dialogues and educational programmes that celebrate diversity is a start. Laughter can be a bridge across divides, easing tensions and fostering connections. By knowing our neighbours, we are more likely to notice signs of tension or disputes and intervene early to prevent them from escalating. Some neighbourhoods in Kuala Lumpur have been holding regular street parties to foster friendship and neighbourliness. The National Unity Ministry can take the initiative and start the ball rolling to start and encourage similar activities. Neighbourly social interactions are not just a pleasant aspect of community life, they are the lifeblood of a harmonious multiracial society. Let us remember that, ultimately, we are all Malaysians, and our diversity is our strength. Tan Sri Lee Lam Thye Trustee Malaysia Unity Foundation COMMENT by Melissa Norman Catalysing prosperity in 2024 IN this era, as we welcome 2024, the resonating call “Unity fuels Malaysia’s ascent” acts as our guiding beacon, propelling us towards progress and prosperity. Reflecting on my journey, unity has stood as a catalyst, amplifying individuality and reinforcing a resilient Malaysia where diverse perspectives converge harmoniously. With deep reverence and unwavering dedication, I echo the resounding message articulated by our 10th prime minister, Datuk Seri Anwar Ibrahim. His impassioned plea implores every Malaysian to unite in a collective pursuit aimed at propelling our cherished nation towards greatness. Let us chart a course where unity serves as the cornerstone, fostering economic vitality and the harmonious coexistence of diverse voices, thereby, steering Malaysia into a future adorned with prosperity and societal harmony. The immortal words of Mahatma Gandhi, “You must be the change you want to see in the world”, encapsulate the essence of our collective mission. Contemplating the imminent transition, as His Royal Highness Sultan Ibrahim of Johor ascends to the role of Yang di-Pertuan Agong on Jan 31, marks a moment deeply rooted in our heritage. It symbolises not only unity and continuity but also reflects our commitment to preserving our nation’s historical legacy with reverence. Consider Malaysia’s resurgent economy – a testament to the transformative power of unity and astute policies. Witness the triumphs achieved through inclusive initiatives beyond our borders. Let us draw inspiration from global success stories and embark on a trajectory where unity and inclusivity form the bedrock of our progress - an unwavering commitment embedded within our aspirations. Envision a Malaysia where the vibrant tapestry of cultures, races and beliefs intertwines seamlessly. Within this rich mosaic lies the essence of our strength, propelling economic growth, attracting global investments and unlocking pathways to enhanced opportunities and equitable wages for every Malaysian. Contemplating these narratives, let us echo the guiding principle of our revered leader, Tunku Abdul Rahman: “We are all Malaysians. This is the bond that unites us.” In the spirit of this shared endeavour, let us champion unity, nurture inclusivity and cultivate an environment where every individual feels empowered and esteemed. As we co-author this chapter of our nation’s story, let us embrace collective introspection, moulding a legacy that reverberates through the annals of time. ”Alone, we can do so little; together, we can do so much” – Helen Keller. Wishing you a joyous and prosperous 2024, with unwavering unity and boundless optimism for a brighter future. Ts Dr Manivannan Rethinam Chairman Majlis Gagasan Malaysia LETTERS [email protected] Neighbourly social interactions serve as the glue that binds this diverse nation together. – MASRY CHE ANI/THESUN
ESG ESG WEDNESDAY | JAN 3, 2024 12 oMalaysia is a highly attractive country in terms of its remarkable potential for such power systems ENERGY is of utmost importance in most economic and social undertakings. The correlation between energy consumption and economic progress is well established. In Malaysia, energy has emerged as a pivotal factor in the nation’s growth, particularly in enhancing industrial and service efficiency. According to the World Energy Markets Observatory report, Malaysia is projected to experience a 4.8% increase in energy demand by 2030. Furthermore, the annual growth rate of electricity demand surpasses that of primary energy production. Over the period of 2009 to 2035, energy demand in Malaysia is expected to see a significant rise, escalating from 96.3 terawatt-hours to 206 terawatt-hours (TWh). Consequently, Malaysia must explore alternative energy sources, such as solar power. Malaysia possesses ideal weather for both solar water heating and solar electricity production. The country enjoys substantial solar energy radiation potential, with an average of six to eight hours of daily sunshine. The abundant solar energy available allows solar panels to efficiently generate electricity with minimal input. As a result, numerous households in Malaysia can effortlessly heat their water and power their homes with solar energy, avoiding the burden of soaring energy expenses. This has positioned Malaysia as a highly attractive nation in terms of its remarkable potential for solar energy systems. The importance of clean energy remains a significant focal point within the Sustainable Development Goals (SDG) framework. Goal 7 specifically emphasises the promotion of affordable and clean energy, striving to ensure accessible, dependable, sustainable and modern energy for everyone. Solar power, being a sustainable energy source, has a pivotal role in mitigating CO2 emissions and addressing the challenge of climate change (Goal 13). This is critical for protecting human health, preserving nature and ecologies. Additionally, solar energy aids in improving air quality and reducing water usage in energy generation. In the context of Malaysia, the country currently boasts a total installed solar capacity of 2,165 MW, as indicated by data from Apricum. Malaysia has outlined plans to increase its capacity by an additional 1,098 MW by 2025, followed by an additional 2,414 MW by 2035. Additionally, the country has raised its renewable energy goals, targeting a 31% share of renewable energy by 2025, equivalent to 8.53 GW in total renewable energy generation capacity. It aims for an even more ambitious target of 40% by 2035, translating to 10.94 GW. As per the Malaysia Renewable Energy Roadmap (MyRER), the government has set its sights on renewable energy contributing to 31% (equivalent to 13 GW) of the country’s energy requirements by 2025. Their target extends to 40% (18 GW) by 2035. In the long run, there is an overarching objective of achieving a substantial 70% renewable energy share by 2050. This aligns with the national aspiration of attaining net zero CO2 emissions by 2050. According to the International Renewable Energy Agency, the shift towards renewable energy is projected to yield substantial benefits for Malaysia. It is expected to result in annual savings ranging between US$9 billion and US$13 billion (RM41.3 billion and RM59.6 billion) by 2050, primarily due to the avoidance of energyrelated, climate, and health costs. Now, the question arises: why should we harness solar energy, and what advantages does it offer? There are multiple compelling rationales for adopting solar energy in Malaysia. Be it driven by economic considerations or environmental concerns; homeowners stand to gain from utilising solar power. 0 To begin with, solar power harnesses energy from an almost boundless source. Since solar energy is produced through solar panels capturing sunlight, the potential electricity generation is immense. Given Malaysia’s favourable climate for solar panels, solar energy is readily available for everyday consumption. 0 Solar energy offers versatility in its applications. While the most widespread use of solar energy is for supplying power to household electrical devices, its utility extends beyond that. Solar energy can generate electricity through photovoltaic systems or provide heat through solar thermal methods. Solar energy harnesses the sun’s thermal energy to warm water using solar hot water systems. Another noteworthy use of solar energy is in regions lacking a conventional power grid. This capability has been particularly beneficial to rural areas in Malaysia that lack access to the electricity grid. 0 Solar energy stands out as an environmentally friendly option due to its independence from any fuel source for electricity generation. Fossil fuels, in contrast, release carbon dioxide, a greenhouse gas that contributes to the growing concentration of carbon dioxide in the atmosphere. Solar panels, which capture energy from the sun to generate electricity, operate without emitting carbon dioxide or causing air pollution. This leads to a reduction in both air and water pollution and contributes to the preservation of Malaysia’s ecosystems and water resources. Moreover, it is worth noting that the materials used in solar panels are environmentally safe and pose no harm to the planet. 0 Incorporating solar energy is a cost-effective method for cutting down on energy expenses. When we opt for solar energy over dependence on a utility provider, we can potentially slash our monthly utility bills by as much as 50%. With the presence of sunlight, we can continually generate electricity to operate our household’s electrical devices. Importantly, solar energy is a freely available resource, which further contributes to cost savings. 0 The expansion of the solar energy sector can have the potential to increase both employment and economic growth. This encompasses jobs in manufacturing, installation, maintenance, and research and development. Malaysia can use this to strengthen its economy. 0 Solar energy investments encourage innovation and technical breakthroughs in the renewable energy industry. Malaysia has the potential to establish itself as a frontrunner in solar technology and provide its knowledge to other nations. 0 Malaysia may improve its energy independence and lessen its reliance on energy imports by increasing the amount of electricity it produces from solar energy. 0 Finally, solar energy is a vital component of Malaysia’s sustainable development strategy since it provides a technologically sophisticated, economically feasible, and ecologically benign energy alternative. In addition to supporting energy security, generating employment opportunities, and lowering greenhouse gas emissions, it also helps Malaysia meet its commitment to the Sustainable Development Goals of the UN. This article is contributed by Dr Rulia Akhtar, research fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya. The materials used in solar panels are environmentally safe and pose no harm to the planet. PRI, CMM and IIC collaborate to develop green investment talent PETALING JAYA: The Principles for Responsible Investment (PRI), Capital Markets Malaysia (CMM) and the Institutional Investors Council Malaysia (IIC) are collaborating to develop the sustainable investment talent landscape in Malaysia. The collaboration will support capacity building for 150 Malaysian investment professionals in environmental, social and governance (ESG) and responsible investment practice. It marks a global first for PRI’s new blended learning pilot programme, which combines inperson training, self-paced e-learning, and virtual classroom elements, to entrench the foundational principles of responsible investment and an understanding of ESG analysis and its practical application in day-to-day investment practices. The “Responsible Investment in Practice” programme is delivered and supported by the Sustainable Investment Platform (SIP), an initiative by CMM and the IIC established to support institutional investors and the fund management industry in building the depth of sustainable and responsible investment strategies which align financial returns with broader ESG priorities. “This partnership is testament to the shared commitment of PRI and SIP to elevate the standards of ESG fluency across the region and ensure that responsible investment training is substantive, meaningful and practical,” said Anthony Roberts, PRI’s director of investor education. “By leveraging a blend of traditional and cutting-edge learning methods, we are setting a new standard for professional development in the finance sector. The partnership underscores PRI’s commitment to fostering a global community of responsible investors, fluent in the language of ESG. Through collaborative, targeted initiatives like this, PRI continues to lead the way in shaping the future of responsible investment training, guidance and education.” The training programme will draw on the PRI’s deep expertise and vast collection of materials, insights, and data to address a range of critical topics, including understanding the key drivers of responsible investment, assessing the materiality of ESG issues, and integrating ESG factors across investment decision-making processes. PRI’s investor education division, PRI Academy, has extensive experience training financial markets and investment industry professionals, with over 23,000 courses completed to date by learners in 88 different countries, and a 98% satisfaction rate. Programme participants will gain knowledge centred around real world, practical application and case studybased learning, ensuring they are equipped to navigate the rapidly evolving responsible investment landscape. Navina Balasingam, general manager of CMM, an affiliate of the Securities Commission Malaysia (SC), said, “While most Malaysian asset managers and asset owners have a sustainable investment policy in place, many have expressed the need for training and talent development to build capacity in technical areas such as incorporating ESG factors in investment analysis and portfolio construction. Our partnership with the PRI Academy underscores our commitment to support Malaysia’s institutional investors and fund managers in developing breadth and depth of expertise in sustainable investing practices. “ Rejina Rahim, adviser to the IIC, said, “Institutional investors and fund managers have the ability to influence and affect real change in economies and societies. To successfully champion the sustainable investment agenda, we need the investment industry as a whole, to understand, embrace and advocate for the agenda. “Thus, it is imperative for investment professionals to be well versed in sustainable investing in order to drive positive change in the industry. We believe this partnership will be a catalyst for broader adoption of responsible investment practices within our industry.” Ecological advantages of going solar
WEDNESDAY | JAN 3, 2024 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: [email protected] Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: [email protected] Oliver Healthcare Packaging begins building Johor factory investors. “To us, timely implementation of committed investments is equally key, because it means that jobs and opportunities for SMEs can be quickly realised to benefit the Malaysian economy.” Meanwhile, Malaysian Investment Development Authority CEO Datuk Wira Arham Abdul Rahman said Oliver Healthcare Packaging’s decision reflects confidence in Malaysia’s business-friendly environment and the resilience of their medical devices supply chain. He added that Mida is fully committed to collaborating with the company to bring this project to fruition, extending a warm welcome to similar initiatives. “Malaysia plays an important role as a oManufacturing facility, its first in Malaysia and largest in Asia, expected to begin operations by end of this year Lexis to open two more hotels with total GDV of RM1.22b KUALA LUMPUR: Lexis Hotels & Resorts Sdn Bhd is set to open two hotels with a total gross development value (GDV) of about RM1.22 billion amid the resurgence in tourist arrivals. President Datuk Mandy Chew Siok Cheng said the GDV of Imperial Lexis Kuala Lumpur, which is located in the city centre, stands at RM720 million, while Lexis Hibiscus 2, with a GDV of RM500 million, is located adjacent to the current Lexis Hibiscus in Port Dickson, Negeri Sembilan. “Imperial Lexis Kuala Lumpur is slated to welcome guests soon, while Lexis Hibiscus 2 is expected to be completed within five years,” she told Bernama. Chew said its current hotel, Lexis Hibiscus Port Dickson, has recorded a growth in guests, particularly postCovid-19 pandemic. “Our annual New Year’s celebration held at Lexis Hibiscus Port Dickson attracted over 2,000 guests, a 100% increase from the previous year’s attendance of roughly 1,000 guests,“ she added. Lexis Hibiscus 2 will feature over 1,000 rooms and, like Lexis Hibiscus, it will feature a private pool in each villa. The development is set to draw around 400,000 tourists to Port Dickson every year, generating RM240 million annually, of which 20% will go to the state government and its people in return for the 32 hectares of land on which the project will be built. Chew announced that the 2024 New Year celebration will be held at Imperial Lexis Kuala Lumpur. The luxury hotel will feature 275 hotel rooms and suites, with a private pool in every hotel room and suite – a first in Kuala Lumpur. Tourism Malaysia deputy directorgeneral (promotion) Datuk Musa Yusof has said Malaysia’s tourism sector is expected to fully recover in 2024, with the number of tourist arrivals seen surpassing pre-Covid19 levels, driven by better flight connectivity and increased visitors from China and India. Malaysia has revised its full-year forecast upwards by 18.63% to 19.1 million tourist arrivals, up from its initial forecast of 16.1 million, following a remarkable increase to 14.4 million tourist arrivals in the first nine months of 2023. Following Malaysia’s transition from the Covid-19 phase to the endemic phase, the number of tourist arrivals rebounded to 10.1 million in 2022. The country received 26.1 million international visitors in 2019, which fell by 83.4% to 4.33 million in 2020, and as the Covid-19 outbreak first emerged and national borders were closed in 2021, the number dropped even further to just 130,000. LYC Healthcare buys out confinement care facility PETALING JAYA: LYC Healthcare Bhd has bought out its Singapore jointventure (JV) partner’s 49% stake in a 67-bedroom confinement care facility in Johor Bharu for RM4.5 million cash, to be paid via monthly instalments of RM300,000. The facility is owned by LYC SOG Mother & Child Sdn Bhd, which is 51% held by LYC Healthcare and 49% by SOG Mummy & Baby Centre Pte Ltd, a wholly owned unit of SOG Health Pte Ltd in Singapore. In a filing with Bursa Malaysia, LYC Mother & Child Centre, a wholly owned subsidiary of LYC, said it has entered into a share sale agreement with SOG Mummy & Baby Centre for the proposed acquisition by LYC Mother & Child Centre of 1,960,000 ordinary shares and 5,390,000 redeemable preference shares in LYC SOG Mother & Child, representing 49.0% equity interest in LYCSOG. Upon completion of the acquisition, LYC SOG will become a wholly owned subsidiary of the group. “The proposed acquisition of the remaining 49% equity interest in LYCSOG will accord the group full control and flexibility in expanding its confinement care business in Johor. “Furthermore, the full ownership in LYCSOG also allows LYC Group to arrange and decide on the structure and timing for fundraising of new capital, as and when required, to ensure the successful execution of the group’s expansion plan in the confinement care business,” it stated. Net foreign buying of RM165.3m on Bursa in final week of 2023 PETALING JAYA: Interest in Malaysian equities among foreign investors stretched into the third week as they net bought RM165.3 million worth of shares on Bursa Malaysia in the final trading week of 2023, according to MIDF Research. It was a shortened trading week due to the Christmas holiday on Monday. Foreign investors net bought RM85.2 million on Wednesday and RM187.9 million on Thursday but net sold RM50.3 million on Tuesday and RM57.5 million on Friday. For the week, the top three sectors with the highest net foreign inflows were Technology (RM213.1 million), Energy (RM45.0 million) and Industrial Products & Services (RM37.0 million). The top three sectors with the highest net foreign outflows were Financial Services (RM93.5 million), Healthcare (RM59.8 million) and Construction (RM27.8 million). Local institutional investors continued to net sell for the second straight week at RM189.6 million, which was 77.7% more than the week prior. They net bought RM21.0 million on Tuesday and RM58.9 million on Friday but net sold RM66.9 million on Wednesday and RM202.7 million on Thursday. Local retailers net bought RM4.3 million last week, after net selling in the two previous weeks. They net bought RM29.3 million on Tuesday and RM14.8 million on Thursday but net sold RM18.4 million on Wednesday and RM1.4 million on Friday. In terms of participation, there was an increase in average daily trading volume (ADTV) among local institutions by 11.6% while local retailers and foreign investors saw declines of 4.3% and 22.0% respectively. PETALING JAYA: Oliver Healthcare Packaging, a US-headquartered supplier of sterile barrier flexible packaging solutions to the global healthcare market, has started construction of its manufacturing facility in Johor – the first plant in Malaysia, and the largest in Asia. In February last year, the company broke ground on its 122,000-square-foot manufacturing facility, which is located within the i-Tech Valley, an integrated industrial park in the established economic zone of Iskandar Puteri, Johor. The plant, expected to begin operations by end-2024, will help develop Malaysia’s medical devices ecosystem through the supply of innovative flexible packaging solutions for Asia-Pacific’s rapidly growing healthcare industry. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said, “Oliver Healthcare Packaging’s choice of Malaysia for its inaugural presence in Asia stands as an unequivocal testament to our attractiveness not only as an investment destination, but also as a thriving and dynamic hub for companies wishing to establish strategic access to the region. The commencement of its facility’s construction sends a strong signal on Malaysia’s efficient facilitation of investments to other Lexis Hibiscus Port Dickson has recorded growth in guests, particularly postCovid-19 pandemic. – LEXIS WEBSITE PIC strategic hub for the many pharmaceutical and medical devices companies in Southeast Asia. We look forward to working closely with Mida to further the growth and development of Malaysia’s medical devices ecosystem. It’s a critical investment that will support the everevolving healthcare needs of this region and beyond,” said Kenneth De Muynck, general manager, Asia-Pacific, Oliver Healthcare Packaging. The new manufacturing facility will create employment opportunities with positions in engineering, manufacturing, plant management, and more. It will also boast the latest stateof-the-art manufacturing equipment housed in ISO-7 and ISO-8 clean rooms, meeting the stringent regulatory standards for medical packaging.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 14 Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ Straits Energy Resources unit certified to enter marine biofuel industry KUALA LUMPUR: Bursa Malaysialisted Straits Energy Resources Bhd said its subsidiary Tumpuan Megah Development Sdn Bhd is set to enter the marine biofuel trading and bunkering industry in the first quarter of 2024 after it was certified by the International Sustainability and Carbon Certification (ISCC EU) Scheme. The breakthrough comes as the maritime industry accelerates its transition to low-carbon alternative fuels, such as sustainable biofuels, as part of the global decarbonisation agenda. According to maritime industry adviser DNV, global production of sustainable biofuels is expected to grow from 11 million tonnes of oil equivalent (Mtoe) per year to 23 Mtoe by 2026. However, DNV estimates that 250 Mtoe of biofuels would be needed yearly if shipping, using mostly biofuels, was to fully decarbonise by 2050. This would imply a more than tenfold expansion of the market. Tumpuan Megah is the first Malaysian industry player to achieve ISCC EU certification as a biofuel supplier and trader, spearheading the industry’s efforts to lower shipping’s carbon footprint. With ISCC EU certification, maritime industry players can exhibit compliance with the sustainability and GHG emissionsaving criteria of the European Union (EU). This includes the stringent requirements established by the EU Renewable Energy Directive (RED II) to classify biofuels as sustainable. The European Union, the United Kingdom, Japan, and Singapore, recognise ISCC accreditation. Straits Energy Resources Bhd managing director Datuk Seri Ron Ho Kam Choy said shipping is the least carbon-intensive method to move products compared with air travel and road transportation. The shipping industry has been transitioning to alternative fuels and energy sources to reduce environmental impact in line with the International Maritime Organisation’s 2023 greenhouse gas strategy. – Bernama B R I E F SDISPOSAL TO HAVE NEUTRAL IMPACT ON CIMB: MAYBANK IB KUALA LUMPUR: Maybank Investment Bank (Maybank IB) does not expect any profit and loss impact on CIMB Group Holdings Bhd following the disposal of CIMB’s remaining stakes in its stockbroking business, having fully recognised all potential gains earlier on. In a research note, Maybank IB said there could be some uplift to capital from the sale, but it expects this to be largely offset by the potential acquisition of KAF Equities Sdn Bhd. “The disposal is expected to be neutral on the group’s earnings. We await further developments concerning the expected acquisition of KAF Equities. “Our target price of RM6.70 is maintained,“ it said, adding that it has a “buy” call on CIMB. – Bernama RIZAL MOHD ZIN IS NEW GROUP CEO OF MBM RESOURCES KUALA LUMPUR: MBM Resources Bhd (MBMR) has appointed Rizal Mohd Zin as its new group CEO effective yesterday. According to a MBMR statement, Rizal previously served as the group chief strategy officer of MNRB Holdings Bhd and, prior to that, he was also the director of investment at Ekuiti Nasional Bhd. Rizal, who holds a Bachelor of Arts in Engineering and a Masters in Engineering from the University of Cambridge, has over 20 years of experience in corporate strategy planning and execution, transformation, performance management, mergers and acquisitions and investment management. – Bernama Tuuu ... Dia Pak Tam expands to Saudi Arabia KUALA LUMPUR: Malaysian restaurant Tuuu … Dia Pak Tam has established itself in Madinah, underscoring the growing popularity of Malaysian food and beverage (F&B) brands in Saudi Arabia and providing itself as a top choice among those seeking out Malaysian cuisine. The opening of the full-service restaurant in Madinah highlights the strength of Malaysian businesses in the services industry and is evidence of its founder and owner’s commitment to share his passion for food with Saudi customers, a statement from the Malaysia External Trade Development Corporate (Matrade) said. “Pak Tam founder and owner Ruslin Ibrahim has more than 30 years of experience in Malaysia’s F&B industry and over the years have expanded offerings to include original equipment manufacturer services, food deliveries, convenience stores, bakeries, catering services and training of culinary professionals,” the statement said. Pak Tam’s arrival in Madinah is symbolic and underscores Saudi Arabia’s acceptance of oMatrade: Malaysian F&B brands growing in popularity in the kingdom foreign cuisines. In addition to serving the Malaysian community there, Pak Tam will also educate locals and tourists on the types and variety of Malaysian cuisine, Matrade said. As a Malaysian restaurant in Madinah, Pak Tam plays an important role in the city’s culinary sector as it fosters cross-cultural interaction. The consul general of Malaysia in Jeddah, Roslan Sharif, congratulated the team at Pak Tam’s official opening. Roslan encouraged Saudi firms to engage with Matrade Jeddah’s commercial section for potential collaborative trade opportunities with Malaysia. “The kingdom currently accounts for 51% of total food retail sales in the Gulf Cooperation Council region. “The presence of Pak Tam is just one example of Malaysian companies leaving their mark in Saudi Arabia, contributing to market demand and supporting the kingdom’s food sector development in line with Saudi Vision 2030,” he said at the opening officiated by Deputy Prime Minister Datuk Seri Fadillah Yusof. The restaurant has a seating capacity of 80 with room for growth. Expanding on its achievement in Madinah, it is considering setting up a state-of-the-art catering establishment in Makkah to meet the rising needs of Hajj and Umrah pilgrims, provide ready-to-eat packaged meals, and nurture collaborations with nearby central cooking facilities. Pak Tam is also actively seeking to expand to Tokyo and Osaka in Japan, and Seoul in South Korea, ahead of the 2025 Osaka International Expo. Matrade Jeddah emphasised the importance of Malaysian brands in Saudi Arabia, citing increased visibility and promising opportunities in the ready-to-eat segment and food services industry. Malaysia exported RM751.25 million (US$158.5 million) worth of processed food to Saudi Arabia in 2022, or 9.5% of Malaysia’s total exports, Matrade said, adding that Malaysian entrepeneurs have the skills to contribute significantly towards the kingdom’s food security objectives. Saudi Arabia has a vision to achieve 85% local food production, the statement said. – Bernama
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 15 ‘Padu to help reduce fuel subsidies by RM6b this year’ KUALA LUMPUR: The Central Database Hub (Padu), launched by Prime Minister Datuk Seri Anwar Ibrahim with a focus on fair subsidy distribution, will help in the effort to reduce fuel subsidies by RM6 billion this year by allowing “means-testing” eligibility based on net disposable income. Maybank Investment Bank (Maybank IB) said the usage of Padu, which integrates socio-economic data from various ministries, federal agencies, state governments and statutory bodies, can be optimised to facilitate the targeting of other subsidies and social assistance. The government has been considering several options to “means-testing” eligibility for targeted subsidies as alternatives to the current monthly household income classifications, the bank said in its Malaysia 2024 Outlook and Lookouts report. The report said they are based on individual net disposable income, and targeted subsidies for the eligible recipients to be provided in “cash” via the social oMaybank IB says database can be used to facilitate other targeted social aid protection system; based on household net disposable income, and targeted subsidies for the eligible recipients to be given in “cash” via combination of social protection and social assistance schemes; and “subsidy cards” to be given to eligible households and individuals based on their net disposable incomes. “We assume the above ‘cash’ options will be to compensate for inflation and cost of living impact from adjustments in the subsidised fuel prices, while the ‘subsidy cards’ will be the non-cash option and is to allocate quota (e.g. in litres per a given period) for subsidised fuel to eligible recipients,” Maybank IB said. The bank said Padu usage can be optimised to facilitate the targeting of other subsidies and social assistances in order to improve the existing cash handouts, welfare, social protection and safety nets programmes with the aim of addressing exclusion/inclusion errors, abuses and leakages. “(It can) ultimately ensure the biggest bang for the buck in government budget for subsidies and social assistance by reaching the intended and the deserving.” Maybank IB said this can possibly end subsidies on essential food items and substitute them with additional cash handouts or financial offsets instead, and improve and streamline various welfare, social protection and safety net programmes. The bank also expects that the process and timing of fuel subsidy rationalisation to be gradual, taking cue from the apparent target to cut fuel subsidy by RM6 billion this year, compared with the record high RON95 and diesel subsidies amount of RM41.75 billion in 2022. It said fuel subsidy rationalisation – and hence the adjustment in fuel prices – must be gradual to mitigate the impact on inflation. Despite potential interest rate cuts in other major economies, Maybank IB said Bank Negara Malaysia is expected to maintain the Overnight Policy Rate (OPR) at 3.0% in this year to manage inflation. The bank forecast inflation to be around 3.0% in 2024, up from an estimated 2.6% last year. “However, the upside to inflation will also be tempered by our expectation of a firmer ringgit versus the US dollar, which we expect to end 2024 at 4.40 versus the 4.70 close at the end of 2023. “This outlook reflects the expectations of US Federal Reserve interest rate cuts amid a stable OPR, thus narrowing the interest rate differential which has widened to all-time high in 2023, as well as the expected execution and implementation of macro blueprints that should be positive for investor and business confidence, hence on ringgit,” it said. – Bernama MAG unveils new campus and corporate website PETALING JAYA: Malaysia Aviation Group (MAG) has relocated MAB Academy’s new campus from Kelana Jaya to South Support Zone in Sepang. The new campus, situated at Malaysia Airlines’ former headquarters, has undergone transformation to embrace modernity and innovation to cultivate a conducive learning environment. MAG group managing director Datuk Captain Izham Ismail said the building’s green concept reiterates its commitment to sustainability not only in products and services but also in operations across business units and premises. MAG comprises three focused business portfolios: Airlines, Loyalty & Travel Services, and Aviation Services. Don urges manufacturers to be objective on ICPT KUALA LUMPUR: Manufacturers should be more objective when asking the government to be transparent about the implementation of the Imbalance Cost Pass-Through (ICPT) mechanism. The Federation of Malaysian Manufacturers (FMM) recently said it was disappointed with the government’s decision to maintain the ICPT mechanism surcharge for the first half of this year at 17 sen per kilowatt hour (kWh). The manufacturers also called for more clarity on the mechanism while hoping for more details to be made available on why such a decision was made as industry players were aiming for a reduction in the ICPT surcharge following the overall declining trend in global fuel prices in 2023 and the six-month lag. Malaysia University of Science and Technology economics professor Geoffrey Williams said since the surcharge has not changed, it would not disadvantage businesses. “The bills for high users are determined in the same way as before and will adjust in the same way so there should be nothing to complain about. Provided cheaper global fuel prices eventually feed into lower prices, there is no particular issue here,” he told Bernama. Implemented in 2015, the ICPT helps protect the industry against fluctuating fuel costs by reviewing fuel prices and generation costs every six months. The mechanism also allows Tenaga Nasional to reflect changes in fuel and other generation-related costs in the electricity tariff as these costs are set based on benchmarked prices in the base tariff. Williams said industry players have already benefited when the ICPT surcharge was cut to 17 sen/kWh from 20 sen/kWh in July last year. They are also enjoying a subsidised rate based on US$79 per tonne of coal to generate electricity when the actual price is US$110 per tonne. “Global gas prices are similarly higher than those used to calculate the costs to industry, therefore they are benefiting quite a lot but we do not see them passing on lower costs to consumers,” he said, urging the manufacturers to be more objective on the matter. AGX inks underwriting agreement with TA Securities for IPO KUALA LUMPUR: AGX Group Bhd yesterday entered into an underwriting agreement with TA Securities Holdings Bhd for the company’s initial public offering on the ACE Market of Bursa Malaysia. The IPO entails a public issue of 96,500,000 new ordinary shares (public issue shares) and an offer for sale of 30,000,000 existing ordinary shares. Of the 96,500,000 public issue shares, 21,650,000 will be made available to the public via balloting, 6,320,000 will be allocated to the eligible directors and employees of AGX and its subsidiaries while the remaining 68,530,000 will be allocated by way of private placement to selected investors. Pursuant to the underwriting agreement, TA will underwrite 21,650,000 public issue shares. Proceeds from the IPO will be utilised for business expansion locally and abroad in the form of setting up new warehouses and offices in Penang and Johor Bahru as well as setting up a new office in Busan, South Korea in order to expand its presence in South Korea. Parts of the proceeds from the IPO have also been earmarked to fund working capital, repayment of bank borrowings as well as for listing expenses. BHIC extends conditional period for stake sale KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) has extended the conditional period relating to its disposal of a 20.77% stake in Boustead Naval Shipyard Sdn Bhd (BNS) to Minister of Finance Inc to Jan 31, 2024. According to a Bursa Malaysia filing yesterday, both parties mutually agreed to extend the third conditional period of the share sale agreement for a further period as the parties require additional time to fulfil the conditions precedent. On Aug 21, 2023, BHIC sold its entire 20.77% stake in loss-making BNS to Ocean Sunshine Bhd, an indirect unit of the Minister of Finance Inc for RM1. The sale is to facilitate the government’s decision to acquire 100% of BNS shares to ensure the completion of the littoral combat ship project. – Bernama “In addition to this, our new corporate website serves as a comprehensive hub where stakeholders and potential business partners can access essential information, delve into our corporate journey, and stay updated on latest developments across the group,” he said. He said both these efforts underscore their commitment in supporting the Long-Term Business Plan 2.0 and ensuring that their strategic initiatives align towards the sustained growth and success of the organisation. The group also recently unveiled its new corporate website in collaboration with marketing transformation solutions provider GrowthOps Asia. Accessible at malaysiaaviationgroup.com.my, the website serves as a central hub for all corporate information pertaining to MAG and its subsidiaries. With the implementation of MAG’s Target Operating Model last year, the newly designed website serves as a central repository for all corporate information pertaining to MAG subsidiaries under its three main business pillars: Airlines, Loyalty & Travel Services and Aviation Services.
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 16 HONG KONG: Asian markets were mixed yesterday as most traders returned from the New Year break looking forward to a 2024 that is expected to see a series of Federal Reserve interest rate cuts. After a blockbuster run in the past two months, Wall Street stuttered last week, though analysts are hopeful for another surge as US monetary policy eases. The next few days will provide fresh insight into the outlook for rates, with the release of minutes from the Fed’s December meeting, followed by jobs creation data. Indications from the bank that it would cut rates three times next year have lit a fuse under equities with inflation and recession fears giving way to hopes for a strong period ahead. “There remains an increasing belief that Fed rate cuts, which have bullishly marked all capital market trends in the last eight weeks, are still fully ingrained in stock market sentiment,” said SPI Asset Management’s Stephen Innes. “While a stronger-than-expected jobs report could shake this conviction, a reversal would require a resurgence in realised inflation, triggering a significantly more assertive hawkish stance from (Fed chairman Jerome) Powell and other key figures to discourage March or May rate cuts bets.” He added that there was a question on how investors would reconcile the difference between market expectations of 150 basis points of cuts and the Fed’s forecast of 75. Despite the upbeat outlook on rates, Asian markets started the year with little fanfare, with Hong Kong and Shanghai extending their 2023 losses. Traders were unmoved by a speech by China President Xi Jinping in which he said the economy had become “more resilient and dynamic”. Observers warned that while Beijing has pledged a series of measures to kickstart growth, much more was needed to instil confidence, particularly regarding the property sector. There were also losses in Mumbai, Singapore and Taipei, although Sydney, Seoul, Manila, Bangkok and Jakarta rose. London, Paris and Frankfurt rose at the open. Tokyo was closed for a holiday, though investors are keeping an eye on developments in Japan a day after a huge earthquake that Prime Minister Fumio Kishida said caused “extensive” damage and numerous casualties. All tsunami warnings from that quake were lifted yesterday. Oil prices jumped more than 1% after Iran dispatched a warship to the Red Sea in response to the US Navy’s destruction of three Huthi boats. Tehran’s move comes with tensions still high in the waterway, where the Yemen rebels have launched attacks on several international container ships, causing some firms to stop using it and fuelling worries about supplies. However, a number of shipping companies have resumed transit following efforts by a US-led naval coalition to police the maritime route. – AFP ‘Indonesian capital market holds huge potential’ JAKARTA: Indonesia’s capital market sector still has great potential amid positive growth last year, Financial Services Authority board of commissioners head Mahendra Siregar said yesterday. At a ceremony marking the opening of 2024 trading at the Indonesia Stock Exchange, he said capital market capitalisation only reached 64% of the country’s gross domestic product (GDP), which was 11,674 trillion rupiah by the end of last year. “Some Asean countries’ (capital market capitalisation) has reached 100% of their GDP,” Antara news agency quoted Siregar as saying. He said the number of capital market investors only accounted for 6.4% of the total productive age population in Indonesia, which is recorded at 12.13 million single investor identification (SID) by the end of last year. To maximise the capital market potential, Siregar said the Financial Services Authority continues to improve the integrity, credibility and good corporate governance of the entire ecosystem of capital market players. He said the authority is also accelerating the completion of examinations and integrated sanctions for financial service institutions. He affirmed that the authority is committed to protecting investors and the public by supervising the behaviour of financial service actors or market conduct. In addition, it will closely monitor all unusual market activity to ensure no violation of prevailing regulations. Siregar said fundraising and financing in the future will increasingly rely on greater domestic capabilities, which will only occur if it is accompanied by integrity, credibility, good corporate governance and guaranteed consumer protection. “All companies and market participants must comply with it, whether state-owned, private, large, medium, or small companies.” Meanwhile, Vice-President Ma’ruf Amin urged the capital market sector to make breakthroughs, thereby easing financing for small businesses. – Bernama oOil prices jump after Iran dispatches warship to Red Sea Thailand approves tax cuts on booze, night clubs BANGKOK: Thailand’s Cabinet has approved a tax cut on alcoholic beverages and entertainment venues to boost tourism, a government spokesman said yesterday. Taxes on wine will be reduced from 10% to 5% and on spirits from 10% to zero, Chai Wacharonke told reporters, adding excise tax on entertainment venues will be halved from 10% to 5%. The tax measures will expire at the end of this year, he said. Thailand in November extended opening hours for entertainment venues by two hours to 4am for nighttime revellers and tourists. Meanwhile, Prime Minister Srettha Thavisin said Thailand and China will permanently waive visa requirements for each other’s citizens from March. Southeast Asia’s second-largest economy, which relies heavily on tourism, in September waived entry requirements for Chinese tourists until February this year. “This will upgrade the relationship between the two countries,” Srettha told reporters. Last year, Thailand welcomed 28 million foreign tourists, slightly above its target, generating 1.2 trillion baht (RM161 billion) of revenue, government data showed. Of that, the top source market was Malaysia with 4.5 million visitors, followed by 3.5 million arrivals from China. That compared with a pre-Covid-19 record of 39 million arrivals with 11 million from China. – Reuters A China tourist taking a selfie with Srettha at Bangkok International Airport. – REUTERSPIC No new year bounce for stocks Vodafone Idea not in tie-up talks with Starlink NEW DELHI: Vodafone Idea is not in talks to tie-up with billionaire Elon Musk’s satellite internet unit Starlink, the Indian telecom operator said yesterday, sending its shares down 5%. The clarification from Vodafone Idea came after its stock surged in the past two sessions on what BusinessWorld magazine said were “markets betting” that Musk was looking to buy a stake in the company to help Starlink enter India. On Monday, the Bombay Stock Exchange, where Vodafone Idea’s stock is listed, had asked the company for a clarification, citing the business magazine’s report. “We would like to submit that the company is not in any such discussion with the named party. “We are not aware of the basis of the said news item,” Vodafone Idea said in a statement. – Reuters
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 17 Bitcoin tops US$45,000, highest since April 2022 SINGAPORE: Bitcoin stormed above US$45,000 (RM207,000) yesterday for the first time since April 2022 as the world’s biggest cryptocurrency started the New Year with a bang buoyed by optimism around possible approval of exchange-traded spot bitcoin funds. Bitcoin touched a 21-month peak of US$45,532, having gained 156% last year in its strongest yearly performance since 2020. It was last up 2.5% at US$45,318 but remains far off the record high of US$69,000 it touched in November 2021. Ether, the coin linked to the ethereum blockchain network, was 1.45% higher at US$2,386 yesterday, having surged 91% in 2023. Investor focus has squarely been on whether the US securities regulator will soon approve a spot bitcoin ETF, which would throw open the bitcoin market to millions more investors and draw billions in investments. The US Securities and Exchange Commission has rejected multiple applications to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency market is vulnerable to manipulation. In recent months, however, there have been increasing signs that regulators are prepared to sign off on Bitcoin remains far off from its record high of US$69,000 it touched in November 2021. - UNSPLASH PIX oAfter 156% gain in 2023, the granddaddy of crypto starts new year on front foot at least some of the 13 proposed spot bitcoin ETFs, with expectations that the decision will likely come in early January. The reaction to a possible rejection would be clear cut and likely see an immediate tumble, said Chris Weston, head of research at Pepperstone. “However, should we see the green light the obvious question is whether we get a buy the rumour, sell-on-fact scenario playout or whether it promotes another leg higher,” he added in a note. Rising bets that major central banks will cut interest rates this year has also been a boon for cryptocurrencies, helping shake off the gloom that had settled over crypto markets following the collapse of FTX and other crypto-business failures in 2022. “The crypto market is set to experience notable growth this year, with key influencing factors being the influx of investment funds from spot ETFs, bitcoin halving, and a more accommodative monetary policy both in the US and worldwide,” said Jupiter Zheng, partner of liquid funds at HashKey Capital. – Reuters Philippines aims to exit global money laundering ‘grey list’ MANILA: The Philippines is hopeful of being taken off the money laundering “grey list” of the Financial Action Task Force (FATF) of this year, the country’s Anti-Money Laundering Council said yesterday. The FATF, an intergovernmental organisation combating money laundering and terrorism financing, added the Philippines to the list in June 2021 for several reasons, including risk of money laundering from casino junkets and lack of prosecution for terrorism funding cases. The Philippines has yet to address several issues flagged by the FATF, executive director of the Anti-Money Laundering Council Matthew David, told a presidential palace press conference. “The most challenging action item is terrorism financing prosecution. We need to file more terrorism financing cases,“ he said. The longer the Philippines is on the grey list, the higher chance it has of being downgraded to the black list, David said. Being blacklisted by the FATF could result in more stringent requirements and higher transaction costs for millions of Filipinos living and working abroad who send billions of dollars to the Philippines in remittances. – Reuters Asia factory activity softens amid patchy China recovery SYDNEY: Asia’s factory activity weakened in December, portending a shaky start for the region’s manufacturing powerhouses in 2024 as China’s patchy economic recovery impeded a broader revival in demand. A range of purchasing managers’ indexes (PMIs) published by S&P Global yesterday showed factory activity continuing to decline in most Asian economies at the end of last year and confidence broadly sagging. The struggles for Asia’s tech-heavy economies persisted with South Korean factory activity dipping back into decline and Taiwan extending its contraction for the 19th straight month, the PMIs showed. China’s Caixin PMI showed an unexpected acceleration in activity in December, although this contrasted with Beijing’s official PMI released on Sunday that remained in contraction territory for the third straight month. The mixed economic prospects for China continue to cloud the outlook for its major trading partners. “Overall, the economic outlook for (China’s) manufacturing sector continued to improve in December, with supply and demand expanding and price levels remaining stable,“ Wang Zhe, Senior economist at Caixin Insight Group said. “However, employment remained a significant challenge, and businesses expressed concerns about the future, remaining cautious in areas including hiring, raw material purchasing, and inventory management.” Beijing has in recent months introduced a series of policies to shore up a feeble postpandemic recovery, but the world’s secondlargest economy is struggling to gain momentum amid a severe property slump, local government debt risks and soft global demand. Elsewhere in Asia, PMIs showed activity in Malaysia’s and Vietnam’s factory sectors remained in contractionary mode, although it accelerated slightly in Indonesia. India’s PMI for last month will be released today and Japan’s is due tomorrow. While Asia’s December PMIs were mostly downbeat, other recent indicators point to signs the region’s post-pandemic recovery is starting to gain traction. Singapore’s gross domestic product sped up in the December quarter from a year earlier, helped by firmer construction and manufacturing, data showed on Monday. South Korea’s exports also perked up in December albeit at a slower pace as weaker Chinese demand offset robust global sales for semiconductors, data showed on Monday. – Reuters Baidu scraps US$3.6b deal for JOYY’s Chinese live-streaming unit HONG KONG: Baidu has terminated its planned US$3.6 billion (RM17 billion) acquisition of Nasdaq-listed JOYY Inc’s livestreaming business in China, the company said on Monday in a filing with the Hong Kong stock exchange. The failure of the deal casts a shadow on search engine giant Baidu’s ambition to diversify its revenue. The company proposed to acquire JOYY’s Chinese livestreaming business known as YY Live in 2020. Baidu affiliate Moon SPV Ltd terminated the share purchase agreement with JOYY because the conditions of closing the deal it provided for “had not been fully satisfied” as of the end of 2023, Baidu said in an exchange filing on Monday. The conditions included obtaining necessary regulatory approvals from governmental authorities, the company said. Reuters in 2021 reported China’s antitrust regulator was unlikely to approve the deal as Beijing sought to increase control of companies collecting large amounts of consumer data and break down monopolistic practices. JOYY is a leading Chinese social livestreaming platform and has expanded globally, with global monthly active users reaching 277 million. In a separate statement release late on Monday, JOYY said it is seeking legal advice and will consider all options regarding the deal cancellation. – Reuters Baidu affiliate Moon SPV Ltd terminates share deal with JOYY due to unmet conditions. - AFPPIX Beijing slams ban on ASML chip machines THE HAGUE: Cutting-edge chip manufacturing machines from Dutch semiconductor giant ASML have been blocked from export to China, according to the firm, amid a report of US pressure in the strategic sector. Semiconductors, which power everything from mobile phones to cars, have become a geopolitical battleground, with the West seeking to restrict China’s access over fears they could be used for advanced weaponry. In Beijing, foreign ministry spokesman Wang Wenbin lashed out Tuesday at what he called Washington’s “bullying behaviour.” Such action “seriously violates international trade rules, seriously damages the global semiconductor industry layout, and seriously impacts the security and stability of international industrial and supply chains,“ said Wang. – AFP
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 18 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Singapore’s Q4 GDP growth accelerates oEconomy surpasses expectations, driven by positive developments in construction and manufacturing SINGAPORE: Singapore’s economy grew 2.8% in the fourth quarter yearon-year, preliminary government data showed yesterday, faster than some economists expected and helped by improvements in construction and manufacturing. The fourth quarter growth in gross domestic product (GDP) was faster than the 1% expansion in the third quarter of 2023. For the full year of 2023, Singapore’s economy grew 1.2%, moderating from the 3.6% growth in 2022. Both OCBC economist Selena Ling and Maybank economist Chua Hak Bin said the year-on-year growth was better than they had anticipated in the fourth quarter. Ling was expecting a 1.8% expansion while Chua was looking at 2.5%. “Green shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” said Maybank’s Chua, who expects GDP growth of 2.2% in 2024. OCBC’s Ling forecast range for 2024 is 1-3%, in line with the trade ministry’s projection. “The key question is how much of a pickup in growth momentum we will have this year given the current uncertainties over whether the US will escape a recession, and if or when the Fed will cut rates, and how geopolitics will play out with US and other elections,” she said. On a quarter-on-quarter seasonally adjusted basis, GDP expanded 1.7% in the October to December period, extending the 1.3% expansion in the third quarter. Monetary policy is due for review no later than January 29, said the central bank yesterday. The Monetary Authority of Singapore (MAS) had increased the frequency of reviews from twice a year to quarterly starting in 2024. In October, the MAS left policy settings unchanged as inflation in the city-state moderated. Singapore’s core inflation slowed to 3.2% in November last year from a peak of 5.5% in January and February. – Reuters China December factory activity picks up: Caixin/S&P PMI BEIJING: China’s factory activity expanded at a quicker pace in December due to stronger gains in output and new orders, but business confidence for 2024 remained subdued, a private-sector survey showed yesterday. The Caixin/S&P Global manufacturing PMI rose to 50.8 at the end of 2023 from 50.7 in November, marking the fastest expansion in seven months and surpassing analysts’ forecasts of 50.4. The 50-point mark separates growth from contraction. The sprawling manufacturing sector came under pressure amid weak demand in 2023, with a property downturn, geopolitical factors and tight-fisted consumers all weighing on the post-pandemic recovery. Chinese top leaders at the end of last year pledged to adjust policy to support an economic recovery in 2024, while markets and investors are waiting for more stimulus measures to be rolled out. The Caixin PMI contrasted with official data released on Sunday that showed manufacturing activity shrinking at a faster pace and more than expected in December. Factory output in December rose at the quickest pace since May, while growth in new orders hit a 10-month high thanks to firmer demand and a pick up in customer spending at the year-end, according to the Caixin survey. New export orders fell at a slower pace as some firms reported an improvement in external demand from November. While factory owners continued to hold an optimistic view on 2024 outlook, their confidence edged down from November and remained below the series long-run trend. They said squeezed customer budgets, tough competition and concerns over sluggish markets were among key concerns. Stocks of finished goods increased slightly, partly due to the delayed shipment of items to clients. Although input costs continued to rise at the year-end, the rate of inflation moderated to a four-month low and was only marginal. The data was collected Dec 6-14, according to S&P Global. Amid weaker-than-expected demand, factory owners cut payrolls for the fourth straight month and at the quickest pace since May. “The expansion of market supply and demand did not translate to an increase in hiring,“ said Wang Zhe, economist at Caixin Insight Group, adding some surveyed firms said existing capacity was sufficient to handle additional orders under the current market condition. “Looking to the new year, there is still room for adjustments in fiscal and monetary policies,“ Wang said, calling for strengthened efforts in increasing employment to alleviate pressure on the job market. – Reuters Indonesia slashes 2023 budget deficit to 1.65% of GDP JAKARTA: Indonesia has reduced its 2023 budget deficit significantly to 347.6 trillion rupiah (RM103 billion), equivalent to 1.65% of gross domestic product (GDP), based on unaudited figures, its finance minister said yesterday. The unaudited deficit was far smaller than the government’s original 2023 fiscal deficit plan of 598.2 trillion rupiah, said Sri Mulyani Indrawati. Indonesia’s fiscal deficit in 2022 stood at 2.35% of GDP. Last year was also the first year since 2012 when the government booked a primary surplus, Sri Mulyani said, referring to the fiscal balance excluding net interest payments on public debt. The government spent 3,121.9 trillion rupiah in 2023, 0.8% up from the previous year, while revenues rose 5.3% to 2,774.3 trillion rupiah. Indonesia has been trying to cut its fiscal deficit to navigate rising borrowing costs globally and better manage its existing debt after large expenditure during the Covid-19 pandemic. The small deficit in 2023 came even as economic activity in Indonesia slowed with its exports shrinking amid falling commodity prices and weakening global trade. Indonesia’s GDP growth likely decelerated to around 5% in 2023 from 5.3% in the year earlier, Sri Mulyani said, predicting growth of 5.2% in 2024. In the third quarter, Southeast Asia’s largest economy expanded 4.94% on an annual basis, the weakest in two years. – Reuters Maersk continues to schedule Suez routes despite Houthi attack OSLO: Denmark’s Maersk still plans to sail more than 30 container vessels through the Suez Canal and the Red Sea in the time ahead despite a weekend attack on one of its ships in the area, a company schedule released late on Monday showed. But Maersk also put on hold plans for some vessels to use the Red Sea route amid continued risk of attacks by Yemen’s Houthi militants, saying it would announce the itinerary for each ship at a later time. Maersk on Sunday paused all Red Sea sailings for 48 hours following attempts by the Iranian-backed Houthis to board its Maersk Hangzhou vessel, although US military helicopters ultimately repelled the attack and killed 10 militants. The Houthi group, which controls parts of Yemen after years of war, in November started attacking foreign ships traversing the Red Sea, saying it was a response to Israel’s assault on the Hamas-ruled Gaza Strip. Major shipping groups, including container giants Maersk and HapagLloyd had last month stopped using Red Sea routes and the Suez Canal, rerouting instead to a longer journey around Africa via the Cape of Good Hope. But Maersk on Dec 24 said it was preparing a return to the Red Sea, citing the deployment of a US-led military operation to protect vessels. The company has said that its top priority is the safety of crew, vessels and cargo, and that plans are updated “on a vessel-by-vessel basis”, with some set to travel via Suez and others taking the longer route around Africa. A detailed comparison of Maersk’s latest itinerary with one released last week showed that the company has put on hold plans for at least 17 vessels to travel through the Red Sea. New plans would be announced at a later time, the company said. The company did not say whether this meant that the vessels would be rerouted around the Cape of Good Hope. Rival Hapag-Lloyd on Friday said it had decided to continue diverting its vessels away from Suez and the Red Sea for security reasons, adding a next assessment would be made soon. According to Maersk, the firm’s alliance partner Mediterranean Shipping Company (MSC) continued to divert all its vessels via the Cape of Good Hope. MSC did not immediately respond to a request for comment. The Suez Canal is used by roughly one-third of global container ship cargo, and re-directing ships around the southern tip of Africa is expected to cost up to US$1 million (RM4.6 million) extra in fuel for every round trip between Asia and Northern Europe. – Reuters Maersk on Sunday paused all Red Sea sailings for 48 hours following attempts by the Iranian-backed Houthis to board its Maersk Hangzhou vessel. – AFPPIX
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 19 STOCKS CLOSING (RM) +/- (RM) VOLUME (’00) RAPID 27.820 -0.660 1,859 HEXTECH 22.120 -0.380 128 IMASPRO 3.530 -0.265 11,256 CARLSBG 19.040 -0.240 3,464 HLBANK 18.660 -0.240 5,253 YNHPROP 4.040 -0.210 22,364 HARISON 8.420 -0.200 62 PPB 14.280 -0.200 2,780 MPI 28.020 -0.180 1,184 KLK 21.660 -0.160 2,822 PETDAG 21.700 -0.140 2,005 VITROX 7.150 -0.140 736 Y&G 0.710 -0.130 3 DCXN-CK 0.050 -0.100 1,000 GENP 5.580 -0.100 1,100 PANAMY 17.900 -0.100 213 UWC 3.420 -0.100 11,632 SIMEPLT 4.370 -0.090 20,213 BAT 9.210 -0.080 883 GCB 1.750 -0.080 47,322 STOCKS CLOSING (RM) +/- (RM) VOLUME (’00) SBAGAN 4.220 +0.970 6,770 DLADY 24.000 +0.840 195 KLUANG 4.340 +0.720 1,665 KUCHAI 1.620 +0.370 5,642 PBA 1.810 +0.350 200,449 APM 2.750 +0.250 5,030 MCEHLDG 3.120 +0.240 22,606 EG-WD(S) 0.235 +0.230 242,819 PMBTECH 2.990 +0.210 10,287 PARAGON 2.990 +0.200 2,599 CRESNDO 2.450 +0.130 5,475 AIRPORT 7.490 +0.130 18,484 SUNWAY-PA 1.950 +0.130 12,141 AMWAY 6.000 +0.120 819 KSENG 4.900 +0.120 1,268 UNIMECH 1.890 +0.120 90 WCEHB 1.130 +0.110 128,996 BIPORT 5.240 +0.100 84 HAPSENG 4.650 +0.100 5,769 NESTLE 117.700 +0.100 822 STOCKS VOLUME (’00) CLOSING (RM) +/- (RM) +/- (%) FINTEC 0.01 - - 2040079 BSLCORP 0.045 - - 1980364 FAST 0.175 0.045 34.62 1381053 MTRONIC 0.02 0.005 33.33 1062257 SAPNRG 0.055 0.01 22.22 1011638 HSI-HSC 0.155 - - 913,478 HSI-CTB 0.085 +0.005 +6.25 867,892 HSI-HSN 0.050 +0.005 +11.11 816,701 MINETEC 0.145 - - 794856 GOCEAN 0.215 -0.01 -4.44 771980 HONGSENG 0.03 0.005 20 769438 HSI-CR9 0.135 -0.005 -3.57 760,303 PASUKGB 0.185 0.03 19.35 758458 SCABLE 0.405 0.03 8 743185 WIDAD 0.485 - - 582072 BIOHLDG 0.12 0.01 9.09 571529 SMTRACK 0.055 0.005 10 570840 LEFORM 0.44 - - 549038 TOPGLOV 0.91 0.01 1.11 508587 MYEG 0.8 -0.015 -1.84 507484 SUNBIZ presents a summary of the day’s trading activity on Bursa Malaysia and other markets in an easy to digest format. MARKET ROUND-UP: JANUARY 2 [ Sources: Bursa Malaysia, Bernama, shareinvestor.com and websites DISCLAIMER: The data and reports are provided as a service to investors. Sun Media Corporation Sdn Bhd shall not be liable or responsible for any consequences resulting from usage of the information. INDEX CHANGE FBMEMAS 10,820.90 -2.72 FBMKLCI 1,453.10 -1.56 CONSUMER PRODUCTS 552.81 -0.87 INDUSTRIAL PRODUCTS 174.36 +1.37 CONSTRUCTION 193.83 +1.90 FINANCIAL SERVICES 16,286.70 -16.30 ENERGY 819.37 +1.64 TELECOMMUNICATIONS 569.25 +0.18 HEALTH CARE 1,907.45 +3.52 TRANSPORTATION 937.60 +7.21 PROPERTY 864.34 +2.23 PLANTATION 6,968.13 -39.80 FBMSHA 10,978.20 -10.40 FBMACE 5,354.55 +32.52 TECHNOLOGY 63.11 -0.28 TURNOVER: 4.911 bil VALUE: RM2.006 bil Top 20 Actives Top 20 Gainers (By RM) Top 20 Losers (By RM) Bursa Indices STOCKS CLOSING (RM) +/- (%) VOLUME (’00) FAST 0.175 +34.62 1,381,053 FOCUS 0.020 +33.33 29,602 MTRONIC 0.020 +33.33 1,062,257 MMAG 0.125 +31.58 439,064 PDZ 0.065 +30.00 339,007 SBAGAN 4.220 +29.85 6,770 KUCHAI 1.620 +29.60 5,642 BTECH 0.370 +27.59 91,597 DIGISTA 0.075 +25.00 57,390 BIOHLDG-PA 0.015 +50.00 25,526 PBA 1.810 +23.97 200,449 SAPNRG 0.055 +22.22 1,011,638 BTM 0.085 +21.43 26,134 LAMBO 0.030 +50.00 33,645 G3 0.030 +20.00 10,388 HONGSENG 0.030 +20.00 769,438 INCKEN 0.480 +20.00 8,463 MQTECH 0.030 +20.00 36,712 NIHSIN-PA 0.030 +20.00 7,517 SAUDEE 0.030 +20.00 469,645 Top 20 Gainers (By %) STOCKS CLOSING (RM) +/- (%) VOLUME (’00) ALAM 0.025 -16.67 4,350 Y&G 0.710 -15.48 3 MINETEC-PA 0.030 -14.29 40,736 BENALEC 0.125 -13.79 141,783 REACH 0.035 -12.50 20,280 TAWIN 0.035 -12.50 39,003 ZELAN 0.070 -12.50 147,444 ECOHLDS 0.080 -11.11 1,714 VSOLAR 0.200 -11.11 101,302 EPICON 0.420 -10.64 437,979 ITRONIC 0.045 -10.00 18,780 ASDION 0.095 -9.52 186,566 CNH 0.050 -9.09 4,000 HANDAL 0.110 -8.33 269,737 KPSCB 0.510 -8.11 80 JOHAN 0.060 -7.69 11,825 FIHB 0.500 -7.41 445 IMASPRO 3.530 -6.98 11,256 PRKCORP 0.450 -6.25 65 SINARAN 0.080 -5.88 3,685 Top 20 Losers (By %) INDEX CLOSING DAILY DAILY CHANGE CHANGE (%) DJIA (US) - - - S&P 500 (US) - - - NASDAQ (US) - - - NYSE (US) - - - EURO STOXX 50 (EUR) 4,532.40 10.75 +0.20 FTSE 100 (UK) 7,732.87 +0.37 +0.01 DAX (GER) 16,841.91 +90.27 +0.22 NIKKEI 225 (JPN) 33,464.17 +75.45 +0.19 TOPIX (JPN) 2,366.39 +4.37 +1.52 HANG SENG INDEX (HK) 16,788.55 +258.84 +0.25 CSI 300 (CHN) 3,386.35 +44.76 +1.30 SH SE COM (CHN) 2,962.28 –12.66 –0.43 KOSPI INDEX (SK) 2,669.81 +14.53 +0.55 MSCI ASIA PACIFIC 169.41 +0.02 +0.01 ASX 200 (AUS) 7,627.79 +36.97 +0.49 ALL ORDINARIES INDX (AUS) 7,867.39 +37.91 +0.48 SENSEX INDEX (IND) 71,892.80 +379.49 +0.53 FBM KLCI 1,453.10 +1.56 +0.11 STRAITS TIMES INDEX (S’PORE) 3,229.95 +10.32 +0.32 WTI (US$/BBL.) 73.46 +1.81 +2.53 BRENT (US$/BBL.) 78.97 +1.93 +2.51 GOLD (COMEX) (US$/T OZ) 2,085.10 +13.30 +0.64 SILVER (COMEX) (US$/T OZ) 24.31 +0.22 +0.54 PLATINUM (US$/T OZ) 997.26 +5.36 +0.54 COPPER (COMEX) (US CENTS/LB.) 388.65 -0.40 -0.10 COPPER 3MO (LME) (US$/MT) 8,559 +65.50 +0.76 CORN (US CENTS/BU.) 471.25 -3.00 -0.63 WHEAT (US CENTS/BU.) - - - SOYBEAN OIL (CBOT) (US CENTS/LB.) - - - COCOA (ICE) (US$/MT) 4,210.00 +14.00 +0.33 RUBBER (S’PORE) (US CENTS/KG) 155.80 +1.60 +1.04 World Stocks/Commodities as at 5pm, Jan 2 1,453.10pts Jan 02, 2024 Bursa ends slightly lower on lack of buying interest KUALA LUMPUR: Bursa Malaysia closed marginally lower on its first trading day of the year, due to a lack of buying interest amid subdued market performance across the region, said a dealer. Rakuten Trade equity research vice-president Thong Pak Leng said the key regional indices were mostly lower following the negative cue from Wall Street last Friday. The benchmark index which opened 2.46 points weaker at 1,452.20, moved between 1,446.36 and 1,453.56 throughout the trading session. In the broader market, gainers surpassed decliners 512 to 463, while 399 counters were unchanged, 854 untraded and 22 others suspended. Turnover went up to 4.91 billion units worth RM2.00 billion from 4.67 billion units valued at RM2.96 billion on Friday. Thong said increasing Mideast tensions, marked by Iran deploying a warship in the Red Sea, have had an impact on sentiment. He said the market’s spotlight now centres on a barrage of data scheduled for release this week, which would offer a clearer picture of the available space for major central banks across the globe to implement monetary policy easing and the potential timing of the impending rate cuts. “As for the local bourse, we view today’s selldown as a good opportunity for bargain hunting, as valuations of local equities remain attractive, particularly among blue-chip stocks. “Consequently, we expect the benchmark index to stage a rebound anytime soon and anticipate it to hover within the 1,450-1,470 range for the week. The Main Market volume narrowed to 2.66 billion units worth RM1.63 billion against 2.68 billion units valued at RM2.57 billion on Friday. – Bernama Participation 32.9 42.8 24.3 100.0 Retail Institutions Foreign Bought RM m 664.9 864.7 476.9 2006.5 Sold RM m 653.8 852.5 500.2 2006.5 Net RM m 11.1 12.2 -23.3 0.0 % Preliminary stats (excluding trade amendments). For final data, please refer to www.bursamalaysia.com Source: Bursa Malaysia A Participating Organisation of Bursa Malaysia Securities Berhad A Trading Participant of Bursa Malaysia Derivatives Berhad S E C U R I T I E S S D N. B H D. 197201001092 (12738-U) 2/1/2024
BIZ & FINANCE BIZ & FINANCE WEDNESDAY | JAN 3, 2024 20 MARKETS/FROM THE BROKERS SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors. [Compiled by SunBiz Team DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shalll not be liable or responsible for any consequences resulting from usage of the information. CIMB Group Holdings Bhd (CIMB) has completed its divestment in the remaining 25% stakes held in the initial CGS-CIMB partnerships, pursuant to the call option exercised by CGS International Holdings Limited (formerly known as China Galaxy International Financial Holdings Limited) on Dec 29, 2023. The exercise was the final part of the call option exercised by CGS International to have full (100%) control of the regional stockbroking business which was initially a 50%-50% joint venture. CIMB will receive an estimated RM780 million in gross proceeds from this sale, bringing the total proceeds for the sale of its 100% original stockbroking business since 2018 to about RM2.5 billion. CIMB will not be exiting the stockbroking space having already disclosed plans last year to acquire 100% of KAF Equities Sdn Bhd for an indicative cash consideration of RM147.94 million. The proposed acquisition has since obtained Bank Negara Malaysia on Aug 2, with approval from the Securities Commission still pending. While KAF Equities is reported to have registered losses of RM6.0 million and RM1.3 million in its recent two financial years (2023 and 2022), the financial impact is inconsequential once eventually consolidated into the CIMB Group. PublicInvest Research remains positive over this transaction and the eventual rebuilding of its stockbroking business. It affirms its OUTPERFORM call on CIMB with an unchanged dividendderived target price of RM6.70. (Jan 2, 2024) FOR 2024, TA Research has selected Malaysia Airports Holdings Bhd’s (MAHB) again as one of its top picks as it believes the company will benefit from rising travel demand to China and Malaysia, thanks to the establishment of visa-free entry effective Dec 1 2023. The research house believes that airline companies would continue adding capacity to the market, thereby reducing the airfare further, which would bode well for MAHB. MAHB recorded 6.6 million passenger movements (pax) for Malaysia operations in November which is usually the off-peak travelling season, down 2.9% month-on-month (m-o-m) but up 27.4% year-on-year (y-o-y). Domestic volume contracted by 6.3% m-o-m to 3.2 million, slipping to 75% of 2019 pre-pandemic levels, attributed to lowerthan-estimated flight capacity for 2023. “We believe the weakness was due to increased allocation of seat capacity to the international sector for higher fare and better yield by airline companies,” it said in its note. The growth in international traffic remained robust (0.4% m-om, +51.8% y-o-y) in Nov-23, offsetting the seasonal weakness in domestic traffic (-6.3% m-o-m, +8.8% y-o-y). The total passenger movements for the international sector rose to 3.4 million (+0.4% m-o-m, +51.8% y-o-y) in November, reflecting a steady recovery to 78% of 2019 levels. For 11M23, the growth in cumulative pax in Malaysia moderated to 61.2% from 65.6% a month ago, to 74.1 million. It accounted for 89.1% of our full-year forecast of 90 million. “As far as share price performance is concerned, MAHB has rallied 12.8% in 2023, meeting our stock selection goal for picking MAHB as one of 2023 top picks. It maintains a BUY on MAHB and raise its discounted cash flow (DCF)-valuation to RM8.20/share from RM7.85 previously after revising the CAPM rate to 14.4% from 14.9% through updating the stock beta. - (Jan 2, 2024) AMINVESTMENT Bank has upgraded the glove sector to OVERWEIGHT, recommending BUY on top growth stocks Hartalega Holdings Bhd (Hartalega) (FV: RM3.20/share) and Kossan Rubber Industries Bhd (Kossan) (FV: RM2.24/share). Its sector upgrade from Neutral previously reflects its recent findings that the US is restricting an increasing number of Chinese medical rubber glove makers due to quality concerns, whereas Malaysian peers encountered fewer issues of this nature. “We deem the medical rubber glove quality issue to be a medium-to-long-term problem for Chinese glove makers to resolve given China’s consistent failure to achieve quality levels comparable to Malaysia and Thailand since 2010,” it said in its sector update report. It believes that the recent increase in quality awareness in the US could trigger medical rubber glove distributors in the region to diversify away certain portions of their orders from China to prevent future order detentions, given the increasing restrictions imposed on Chinese glove manufacturers on a QoQ basis. The research house anticipates that Malaysia would be a preferred location for diversification given that our country exhibited relatively stable quality over the years compared to China and Thailand. “We believe that Hartalega and Kossan could have better business relationships with US customers given their relatively higher exposure to North America compared to Top Glove Corp Bhd and Supermax Corp Bhd,” it said. It maintains BUY on Hartalega with a higher fair value (FV) to RM3.20/share (from RM2.80/share previously), based on a higher CY25F PE of 30x (0.25x standard deviation (SD) above the 10-year average of 27x, from parity previously) as a potential beneficiary of trade diversion. It upgrades Kossan from HOLD to BUY, with a higher fair value (FV) of RM2.26/share (from RM1.34/share previously). - (Jan 2, 2024) FOREIGN CURRENCY SELLING TT/OD BUYING TT BUYING OD 1 US Dollar 4.6710 4.5370 4.5270 1 Australian Dollar 3.1920 3.0660 3.0500 1 Brunei Dollar 3.5300 3.4270 3.4190 1 Canadian Dollar 3.5160 3.4210 3.4090 1 Euro 5.1530 4.9860 4.9660 1 New Zealand Dollar 2.9560 2.8460 2.8300 1 Papua N Guinea Kina N/A N/A N/A 1 Singapore Dollar 3.5300 3.4270 3.4190 1 Sterling Pound 5.9500 5.7620 5.7420 1 Swiss Franc 5.5170 5.3910 5.3760 100 UAE Dirham 128.4500 121.7800 121.5800 100 Bangladesh Taka 4.3290 4.0460 3.8460 100 Chinese Renminbi 65.6000 63.1000 N/A 100 Danish Krone 70.8500 65.1900 64.9900 100 Hongkong Dollar 60.3300 57.3200 57.1200 100 Indian Rupee 5.7000 5.3500 5.1500 100 Indonesian Rupiah 0.0313 0.0284 0.0234 100 Japanese Yen 3.3040 3.1990 3.1890 100 New Taiwan Dollar 16.3000 N/A N/A 100 Norwegian Krone 47.0100 43.2500 43.0500 100 Pakistan Rupee 1.6900 1.5900 1.3900 100 Philippine Peso 8.5400 8.0500 7.8500 100 Qatar Riyal 129.3300 122.7800 122.5800 100 Saudi Riyal 125.7000 119.3300 119.1300 100 South Africa Rand 26.4100 23.8400 23.6400 100 Sri Lanka Rupee 1.4900 1.3700 1.1700 100 Swedish Krona 47.7500 43.4600 43.2600 Exchange Rates Source: Malayan Banking Bhd/Bernama Ringgit falls against US dollar on first day of trading in 2024 KUALA LUMPUR: The ringgit fell on the first trading day of 2024 on caution ahead of a slew of economic data due this week, including European inflation and US jobs data. At 6pm, the ringgit dropped to 4.6035/6080 versus the greenback from Friday’s close of 4.5900/598. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the local currency fell to as low as RM4.6060 in the morning before rising to RM4.6005 in the afternoon. Mohd Afzanizam said that from a technical standpoint, the ringgit is already in an overbought situation, which suggests some correction would occur. “Beyond technicals, views on interest rate cuts in the United States will continue to be the main driver for ringgit appreciation. Therefore, the incoming data points such as on US job openings and nonfarm payroll are critical to whether such a view would hold water,” he told Bernama. Meanwhile, the local note traded mostly higher against a basket of major currencies. It was marginally higher against the Japanese yen at 3.2317/2552 from 3.2356/2415 on Friday and rose versus the euro to 5.0685/0734 from 5.0729/0817. However, the ringgit weakened vis-a-vis the British pound to 5.8524/8582 from 5.8321/8422. The ringgit was traded mixed against Asean currencies. It fell against the Singapore dollar to 3.4793/4830 from 3.4746/4812 at Friday’s close and depreciated against the Thai baht to 13.4838/5033 from 13.3422/3760. The local currency edged up versus the Indonesian rupiah to 297.5/298.0 from 298.1/298.6 and improved vis-à-vis the Philippine peso to 8.27/8.28 from 8.28/8.31. Analysts mixed on banking sector’s growth prospects KUALA LUMPUR: Analysts have taken a mixed stance on the banking sector but anticipate stronger loan growth in 2024. Kenanga Research has maintained its OVERWEIGHT call on the sector with the loan growth projection in a range of 4.5% to 5% for the year, which is a tad higher than its 2023 assumption of 4% to 4.5% premised upon a greener economic landscape. For Q1 2024, its top picks are CIMB (OP; TP:RM6.30) for its strengthening regional portfolio, AMBANK (OP; TP:RM4.80) for its strengthening books and possible positive near-term reaction from upcoming tax credits and ABMB (OP; TP:RM4.30) for its leading yet sustainable fundamentals. MIDF Research has maintained its POSITIVE call on the sector with the view that valuations and dividend outlook are strong, and that upside rerating drivers should provide a boost to sector valuations, especially since the worst seems over for now. Its top picks are CIMB (BUY, TP: RM6.62) and AMMB (BUY, TP: RM4.23). The research house said it saw a good recovery in loan growth, with a strong uplift from a sluggish couple of months, increasing by 4.9% year-on-year and 0.8% month-on-month (m-o-m). According to Bernama, Hong Leong Investment Bank Bhd has retained a NEUTRAL call on the sector as it viewed that the risk-reward now as more balanced, with no new positive catalysts to spur share prices significantly higher. The bank said the sector’s profit in 2024 and 2025 was projected to grow at a slower rate of 4% to 5% as against 14% in 2023. It said this projected growth also lagged the broader market, with the FTSE Bursa Malaysia KLCI being seen to rise at a quicker eight per cent in 2024. Glove Sector OVERWEIGHT Malaysia Airports Holdings Bhd BUY. DCF-VALUATION: RMRM8.20 CIMB Group Holdings Bhd BUY. TARGET PRICE: RM6.70 Source: PublicInvest Research Source: TA Research Jan 2, 2024: RM5.84 Jan 2, 2024: RM7.49