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CEOMorningBrief WEDNESDAY, AUGUST 2, 2023 ISSUE 612/2023 theedgemalaysia.com WORLD FACTORY ACTIVITY SHRINKS AS CHINA, SLOWING GROWTH TAKE TOLL p16 HOME: State polls: PH-BN launch ‘Kita Selangor’ manifesto with five key pledges p2 Alliance Bank extends bancassurance agreement with Manulife for another 15 years p4 Dufu Technology warns of lower FY2023 earnings amid slow demand; declares 1.5 sen dividend p6 MAHB to take active steps to address wildlife smuggling p15 WORLD: China vows more loan support for businesses to spur economy p17 Malaysian manufacturing sector moderated further at the start of 3Q2023 Report on Page 3. PETRONAS

WEDNESDAY AUGUST 2, 2023 2 THEEDGE CEO MORNING BRIEF published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] State polls: PH-BN launch ‘Kita Selangor’ manifesto with five key pledges SHAH ALAM: The Pakatan Harapan (PH)-Barisan Nasional (BN) alliance launched the “Kita Selangor” manifesto on Monday (July 31) night, offering five key pledges to the people of Selangor, should they be chosen to lead the state for the next five years. The key pledges are having a superior economy and quality education as catalysts for high-income employment opportunities; religion as a beacon and inspiration for a dignified life in Selangor; good and efficient government services; development that is sustainable, comfortable and livable; and Selangor being a compassionate state that defends the people’s interests. Selangor PH chairman Datuk Seri Amirudin Shari said the offers presented built on the continued success, excellence and prosperity experienced by Selangor over the past five years. “The manifesto was carefully drafted by the Unity Team (comprising representatives from PKR, Amanah, DAP and Umno) to further propel Selangor in the five years to come,” he said during the launch of the manifesto and the introduction of the candidates representing the alliance here. Also present were Selangor BN chairman Datuk Megat Zulkarnain Omardin, Selangor Amanah chairman Izham Hashim and Selangor DAP chairman Gobind Singh Deo. Amirudin, who is also incumbent Selangor menteri besar, said that under the first pledge, the coalition had prepared 14 offers, among them being 100,000 high-paying job opportunities for the younger generation, making Selangor the main investment destination in Southeast Asia by establishing a third port at Pulau Carey through the cooperation of the federal government, and creating three new townships, namely in Sepang, Sabak Bernam and along the Klang River. Other offers include giving RM200 book Bernama HOME purchase vouchers to youths, offering industrial training opportunities with a payment of RM1,500 per month for 2,000 trainees and creating a Kita Selangor Digital Grant, which aims to have 10,000 Kita Selangor Creative Ambassadors with an allocation of RM5 million for a period of five years. Under the second pledge, he outlined nine offers including providing a fare and cost subsidies for performing the haj amounting to RM2,000 for 3,000 firsttime pilgrims, increasing the allowance of imams and other mosque staff in stages, as well as increasing allocations for the Buddhist, Christian, Hindu, Sikh and Taoist communities for improving the infrastructure of non-Muslim houses of worship. In terms of providing efficient services, he said the PH-BN alliance had formulated five offers, including fully digitalising government services, helping every business in Selangor to fully switch to a digital system and connecting the state government control centre with all local authorities in order to improve services and responsiveness. A total of 12 offers were also made for the fourth pledge with regard to development, among others being the Kita Selangor housing initiative offering 200,000 units with three bedrooms and two bathrooms and comfortable facilities priced below RM250,000 for Selangorians, as well as financing from banking institutions. Amirudin said under the same pledge, the alliance would also strengthen Akademi Merah Kuning with the Selangor football team, aiming to become champions of the Malaysia Cup, Sukma and Super League by 2025 and the AFC Cup in 2027. For the 12 offers under the final pledge, Amirudin said the coalition aimed to expand the number of programmes under “Iltizam Selangor Penyayang” from 46 to 60, register and train childminders and provide child care facilities in state government offices, as well as those of local authorities, and offer incentives for the provision of care facilities at workplaces in the private sector. Also offered is the Kita Selangor agriculture incentive of RM1,000 to farmers and paddy growers including seeds, fertilisers and better quality insecticides to increase agricultural yields, and providing free Selangor Penyayang Ambulance services at all local authorities. “These five key pledges were not drafted just like that. With the five objectives under the Kita Selangor manifesto, we offer 53 programmes and efforts to make Selangor a major player in the Southeast Asian region, so that it can become one of the most advanced states in Asia,” he said. THE EDGE FILEPIX BY LOW YEN YEING Read also: Woman quizzed over doctored video of Perak sultan’s speech — IGP 40 straight fights in Kelantan polls a challenge for parties, voters

WEDNESDAY AUGUST 2, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): The Malaysian manufacturing sector moderated further at the start of the third quarter of 2023 (3Q2023), with indications from firms that demand remained subdued. In a statement on Tuesday (Aug 1), S&P Global Market Intelligence said order books were scaled back to the greatest extent in six months, amid sustained weakness in client confidence. It said that as a result, production levels also remained muted. In response to weakened market conditions, manufacturers opted to reduce their workforces for the third consecutive month. The rate of job shedding was only marginal, yet the steepest recorded since December. Anecdotal evidence suggested that the reduction was in part due to increased cost burdens during July. As such, Malaysian goods producers signalled that input price inflation accelerated for the fourth month in a row, to reach the highest since February. The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) posted 47.8 in July, up slightly from 47.7 in June. S&P Global Market said the latest reading pointed to a sustained slowdown in business conditions that was broadly in line with that seen on average over the second quarter of the year. The latest PMI reading is consistent with sustained expansions in both manufacturing production and GDP (gross domestic product), although there are signs that growth has dampened somewhat since the start of the year. The strongest contributor to the sub50.0 reading in July was a solid reduction in new order volumes. Demand has now moderated in each of the last 11 months, with the latest slowdown being the most marked since January. A number of firms noted that client confidence remained subdued in both domestic and international markets. Notably, the rate of moderation in new export orders quickened to the fastest since May 2020. Meanwhile, production volumes were scaled back for the twelfth month running in July. The rate of reduction was broadly similar to those seen in May and June, as survey respondents reported that drops in output were reflective of relatively muted demand conditions. S&P Global Market said July data was indicative of a third consecutive fall in workforce numbers at Malaysian manufacturers, albeit one that was marginal overall. That said, the rate of job shedding was the most marked since the end of last year. Where a decrease in employment levBY SURIN MURUGIAH theedgemalaysia.com Malaysian manufacturing sector moderated further at the start of 3Q2023 els was reported, companies commonly linked this to the non-replacement of voluntary leavers. Moreover, firms signalled that they had sufficient capacity to work through existing orders amid subdued demand, as evidenced by a further fall in backlogs of work that was the quickest for three months. On the price front, average cost burdens rose at a modest pace, extending the current sequence of rising prices to 38 months. Although below the series average, the rate of inflation accelerated for the fourth month running to reach the highest since February. Survey members mentioned that raw material prices continued to rise amid the exchange rate weakness. Firms meanwhile reported that prices charged for goods were unchanged on the month however, as some panellists signalled that selling prices were reduced in order to stimulate demand. Suppliers’ delivery times were broadly unchanged in July, thereby ending a sixmonth sequence of shortening lead times. Subdued operating conditions also reportedly led firms to scale back input buying, in line with production requirements. Both pre- and post-production inventories also moderated in the latest survey period. Malaysian manufacturers remained hopeful that demand conditions would normalise over the coming 12 months, as indicated by the twenty-fifth consecutive month of optimism regarding future output. Sentiment was relatively muted, however, and eased to the weakest in the current sequence of optimism. S&P Global Market economist Usamah Bhatti said the Malaysian manufacturing sector continued to indicate sustained weakness in operating conditions in July, according to the latest PMI data. “New order intakes moderated to the greatest extent for six months, while production levels continued to be scaled back at a solid pace, indicating that the sector still has some way to go before demand recovers fully. “Firms also noted concern on the price front, as input price inflation accelerated for the fourth month in a row to reach the highest since February. “In an effort to limit cost pressures, firms looked to reduce workforce numbers, with the latest moderation (being) the sharpest since the end of last year,” said Bhatti. Malaysia Manufacturing PMI -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 sa, >50 = improvement since previous month Sources: S&P Global PMI, Department of Statistics Malaysia via S&P Global Market Intelligence. Data were collected 12-25 July 2023. Gross domestic product %yr/yr THE EDGE FILEPIX

WEDNESDAY AUGUST 2, 2023 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): Malayan Banking Bhd (Maybank)’s 98.54%-owned PT Bank Maybank Indonesia Tbk’s net profit for the first half ended June 30, 2023 (1HFY2023) jumped 44.5% to Rp960 billion (RM286.54 million), from Rp663 billion (RM197.89 million), on the back of a decrease in provisions following improved asset quality and well-managed overhead costs. The banking group’s net interest income (NII) also grew 6.7% due to an increase in loans and better earning assets composition, according to a press release on Tuesday (Aug 1). The group said that the economy in Indonesia had resumed its growth phase in the first half of the year, with a stable business climate leading to higher loan demand and a steady market outlook. The bank was also able to book higher earnings from its loan portfolio and a significant increase in fee-based income as treasury-related transactions improved. Fee-based income widened by 25.6% to 1.10 trillion rupiahs from 872 billion rupiahs, owing to significant growth in global market (GM) transaction fees of 239.3% to 182 billion rupiahs, compared to 54 billion rupiahs year-on-year (y-o-y). Maybank Indonesia added that the improved performance was also “supported by stable interest rate environment and positive market outlook, as well as improved forex services performance”. Additionally, the group saw an 11.6% increase in non-GM fees, recording 913 billion rupiahs from 818 billion rupiahs in 1HFY2022, comprising asset recovery fees that grew more than seven times to 241 billion rupiahs, as well as loan and retail business-related fees. For the first half of 2023, the bank’s total outstanding loans recorded a slight increase of 2.9% to 109.97 trillion rupiahs, from 106.81 trillion rupiahs, as the Indonesian economy continued its growth phase, leading to improvements in public consumption and consumer purchasing power. The group saw significant growth in community financial services (CFS) retail loans by 15.4% to 41.49 trillion rupiahs, from 35.95 trillion rupiahs, supported by growth in subsidiaries’ auto loans, credit card busiMaybank Indonesia records 44.5% jump in 1HFY2023 net profit on improved Indonesian economy KUALA LUMPUR (Aug 1): Alliance Bank Malaysia Bhd has extended its exclusive bancassurance partnership with Manulife Holdings Bhd for another 15 years. Both parties entered the bancassurance agreement in 2013. Manulife was to pay a total fee of RM70 million to Alliance over the past 10 years. In a joint statement on Tuesday (Aug 1), both parties said the extension reaffirms their commitment to build on their strengths and further accelerate their shared vision to offer holistic financial solutions and increase the level of comprehensive protection benefits for the bank’s customers. “Alliance Bank and Manulife Malaysia have been partnering to offer innovative insurance and wealth management solutions since 2013. “In the next 15 years, Alliance Bank will continue to distribute Manulife Malaysia’s life insurance products, enabling the bank to drive growth for its fee-based income,” they said. Alliance group chief executive officer Kellee Kam said the partnership with Manulife gives the group an opportunity to better support its customers’ health, Alliance Bank extends bancassurance agreement with Manulife for another 15 years BY REYANNA NG theedgemalaysia.com protection, and investment needs. “The renewed focus will see us further tapping our partner’s insurance expertise and resources to offer more market-leading experiences, products, and digital solutions for Alliance customers,” he noted. Meanwhile, Manulife Malaysia CEO Vibha Coburn said the extension is an important milestone for Manulife Malaysia and Alliance Bank as it reaffirms both parties’ success over the past 10 years. “Built on a solid foundation, this partnership reaffirms our commitment to giving more Malaysians greater access to the right information, advice, solutions, and positive customer experiences,” she added. By leveraging their respective expertise, both parties are set to remain adaptable and responsive to the evolving financial landscape, delivering value to Malaysian customers as well as empower Malaysians with holistic wealth and protection solutions. Shares in Alliance closed down four sen or 1.13% to RM3.49 on Tuesday, giving it a market capitalisation of RM5.4 billion. Meanwhile, Manulife was last traded at RM1.89, valuing the group at RM408.73 million. ness and personal loans, and mortgages. “The bank maintained its conservative approach to rebalance its non-retail loans portfolio and took a cautious risk posture in loan disbursements to ensure long-term commitment with clients. In the first half of 2023, the bank’s CFS non-retail loans decreased by 2.9% as the business banking segment eased by 6.8%, followed by a 4.0% decline in the small-medium enterprise loans segment,” Maybank Indonesia further commented. Meanwhile, the group’s total customer deposits stood at 110.38 trillion rupiahs, declining slightly by 1.1% from the 111.66 trillion rupiahs posted a year earlier, owing to a drop in the bank’s current account savings account (Casa) of 2.7%, with the Casa ratio remaining largely stable at 48.6%. Moreover, the bank’s time deposits also increased minutely by 0.4% y-o-y but grew significantly by 13.8% quarter-on-quarter, as customers sought to divest funds in higher earnings deposits. The group also saw its overhead costs increase by 6.4% to 2.94 trillion rupiahs, as it continued to intensify the development of its human capital with future-ready skills, incorporate more strategic hiring and training programmes, as well as increase customer engagement and campaign initiatives, resulting in higher marketing and outsourcing costs. Read the full story BY ANIS HAZIM theedgemalaysia.com

WEDNESDAY AUGUST 2, 2023 5 THEEDGE CEO MORNING BRIEF

WEDNESDAY AUGUST 2, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): Surface engineering service provider Frontken Corp Bhd saw its net profit for the second quarter ended June 30, 2023 (2QFY2023) slip 0.89% to RM31.91 million from RM32.2 million a year earlier, on lower revenue from its Taiwan and Singapore units. The group’s earnings per share fell slightly to 2.03 sen from 2.05 sen previously. Frontken’s revenue dropped 5.5% to RM121.15 million in 2QFY2023 compared to RM128.20 million in 2QFY2022. In its bourse filing on Tuesday (Aug 1), the group said the drop in revenue from its Taiwan and Singapore units was caused partly by weaker demand from its semiconductor customers flowing on from the first quarter. Frontken added that the group’s subsidiaries in Malaysia showed better performance due to the improvement in the oil and gas industry. “The improvement in our local business was largely due to new orders for provision of manpower supply and mechanical rotating equipment services from various contracts that the group has with the Petronas group of companies,” it commented. For the six-month period ended June 30, 2023 (1HFY2023), the group recorded a net profit of RM55.5 million, a 5% drop from RM58.72 million in 1HFY2022. Frontken’s 2Q net profit slips marginally on lower revenue from Taiwan, Singapore units KUALA LUMPUR (Aug 1): Dufu Technology Corp Bhd, which saw second-quarter net profit fall 88.7% year-on-year (y-o-y), has warned that the group’s financial performance for the full year ending Dec 31, 2023 (FY2023) is expected to be “considerably lower” compared with FY2022, given reduced demand from customers, challenging operating conditions and uncertain market circumstances. In a bourse filing on Tuesday (Aug 1), the precision machining parts and components manufacturer said a decline in consumer spending, coupled with rising interest rates and persistent inflationary pressures, has led to reduced capital expenditures by enterprises and cloud providers. “Consequently, the demand for large-capacity hard disk drives (HDD) and other semiconductor-related fabrication equipment have been negatively impacted. Additionally, in Malaysia, the group’s profitability will be further affected by the increased energy costs resulting from electricity tariff adjustments through the imbalance cost pass-through mechanism,” it added. “Looking ahead in the long term, we anticipate digital storage devices to grow in sync with the strong demand from the cloud data centre market, driven by the relentless growth of data. HDD storage devices are expected to remain the most cost-effective solution for storing large volumes of data.” Considering the ongoing customer inventory correction in the HDD business, Dufu anticipates that the potential of a Dufu Technology warns of lower FY2023 earnings amid slow demand; declares 1.5 sen dividend BY JUSTIN LIM theedgemalaysia.com BY REYANNA NG theedgemalaysia.com demand recovery will only commence at the beginning of 2024. On its part, it remains committed to streamlining its business structure, enhancing its processes and optimising operations. In the second quarter ended June 30, 2023 (2QFY2023), Dufu posted a net profit of RM3.32 million compared with RM29.26 million in 2QFY2022, on lower revenue given the decrease in revenue in HDD components as well as higher operating costs incurred. As a result, its earnings per share declined to 0.6 sen in 2QFY2023, from 5.5 sen in 2QFY2022. Quarterly revenue fell 48.1% y-o-y to RM47.65 million — its weakest in nearly six years since 3QFY2017 when it posted a revenue of RM43.53 million. Despite the weak quarterly performance, Dufu declared an interim dividend of 1.5 sen per share for FY2023, payable on Sept 22. For 1HFY2023, the group’s net profit shrank 70.2% to RM14.2 million from RM47.58 million a year earlier, on the back of a 31.6% decline in revenue to RM121.84 million from RM178.11 million in 1HFY2022. Shares in Dufu closed unchanged at RM1.90 on Tuesday, giving the group a market capitalisation of RM1.03 billion. Revenue also declined 5% to RM235.14 million in 1HFY2023 from RM247.34 million in 1HFY2022, affected by lower demand from the group’s semiconductor clients. “The Semiconductor Industry Association (SIA) announced that the global semiconductor industry sales during the month of May 2023 totalled US$40.7 billion (RM183.6 billion), an increase of 1.7% compared to April 2023 but 21.1% less than May 2022. “Despite continuing market sluggishness compared to 2022, month-to-month global semiconductor sales inched upward in May for the third consecutive month, sparking optimism for a bigger market demand during the traditionally stronger second half of the year,” Frontken said, adding that it was hopeful to see more activities in its new second facility in Taiwan. As for the oil and gas industry, Frontken said it was cautiously optimistic that the business will emerge stronger than last year due to increased orders from the various contracts for the provision of manpower supply, as well as mechanical rotating equipment services and parts that it has contracted with the Petronas group. “The group remains prudent on the overall business conditions in the second half of the year despite the positive overview from SIA, considering the current geopolitical tension, rising interest rates and inflationary pressure,” it added. At the midday break, shares of Frontken rose two sen or 0.62% to RM3.26, valuing the group at RM5.15 billion.

WEDNESDAY AUGUST 2, 2023 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd (Petronas) have signed a joint feasibility study agreement (JFSA) on Tuesday (Aug 1) to affirm their commitment to advance studies for hydrogen business development in Malaysia. According to a statement on Tuesday, the JSFA follows a memorandum of understanding that was previously signed by both companies. This partnership shows TNB and Petronas’ shared goal of expediting the deployment of clean technologies, such as hydrogen and carbon capture, that aim to decarbonise the energy sector. “This agreement serves as a testament to our unwavering dedication to uniting industry players and forging a powerful synergy. Together, we are committed to exploring and developing business ventures in the promising field of green hydrogen,” said TNB president and CEO Datuk Indera Baharin Din. Meanwhile, TNB chief strategy and venture officer Datuk Megat Jalaluddin Megat Hassan said the collaboration will help national economic growth and prosperity and create numerous job opportunities. “Together, we [Petronas and TNB] look forward to building an ecosystem of technology and infrastructure for the clean energy needed to progress the nation’s sustainability goals and support an equitable energy transition for future generations,” said Petronas senior vice president of proTNB, Petronas sign agreement to advance studies for hydrogen biz development in Malaysia KUALA LUMPUR (Aug 1): Freight services provider KGW Group Bhd made its debut on the ACE Market of Bursa Malaysia on Tuesday (Aug 1) at 23 sen, or a premium of 9.52% over its initial price offering (IPO) price of 21 sen. Its share price rose to an intraday high of 25 sen before closing at 23 sen. KGW was the most active counter on Bursa Malaysia, as its trading volume amounted to 180.39 million shares at market close. Established in 2005, KGW is a non-vessel operating common carrier (NVOCC) that provides end-to-end freight services mainly for Malaysian exports to the US. An NVOCC is asset-light, as it typically performs all the services of a vessel operating a common carrier but does not own the vessels. Some 71.8% of KGW’s revenue comes from export services to the US. Through its subsidiaries, it is principally involved in the provision of logistics services, including ocean freight services, air freight services and freight forwarding services, as well as warehousing and distribution of healthcare-related products and devices. KGW also undertakes imports and exports via ocean freight and air freight services to Asia, which account for 10.58% of its revenue, and Europe (8.8%). At 23 sen per share and its enlarged share capital of 482.8 million shares, KGW has a market capitalisation of RM111.04 million. It is currently trading at 6.94 times of its price-earnings (P/E) based on its audited combined profit after tax (PAT) of approximately RM16.34 million for the year ended Dec 31, 2022 (FY2022). KGW’s IPO had comprised a public issue of 79.66 million new shares, including 24.14 million shares available to the Malaysian public, and 9.65 million shares for eligible directors, employees and persons. Its private placements involved 7.24 million shares by way of private placement to selected investors and 38.62 million shares to Bumiputera investors. KGW raised RM16.73 million from its IPO, with 59.78% or RM10 million of the proceeds earmarked to repay bank borrowings, while 11.95% (RM2 million) was for the renovation of a new operational site in Glenmarie. Other utilisation of its proceeds include 23.91% (RM4 million) allocated for listing expenses, and 4.36% (RM730,000) for working capital. KGW Group debuts at 23 sen on ACE Market for 9.5% premium BY SUFI MUHAMAD theedgemalaysia.com BY ANYA SREENEVASAN theedgemalaysia.com Two research houses were upbeat on KGW’s future prospects, with RHB Investment Bank having assigned its shares a fair value (FV) of 23 sen, a 9% premium over its IPO price, representing a P/E multiple of 12.2 times its financial year ending Dec 31, 2024 earnings. Meanwhile, Public Investment Bank Bhd assigned a slightly higher FV of 24 sen, based on an eight times P/E multiple to its FY2024 earnings per share of three sen. Based on the group’s prospectus, KGW is also looking into breaking into China, the Middle East and parts of Asia as destination markets, and in the near term, put more emphasis on industrial customers and products where volumes are less affected by economic swings, such as palm oil. In terms of finances, KGW recorded a 3.66% growth in PAT in FY2022 to RM16.34 million, from RM15.76 million, as revenue rose 17.54% to RM229.67 million, from RM195.42 million in FY2021. However, in 1QFY2023, group PAT stood at RM1.28 million, from RM7.56 million, as revenue fell 77% to RM18.04 million, from RM80.97 million in 1QFY2022. TA Securities Holdings Bhd was the principal adviser, sponsor, underwriter and placement agent for the IPO. Read also: KGW Group to develop e-commerce solutions for Malaysian biz eyeing US markets, says MD ject delivery and technology Datuk Bacho Pilong. The two organisations plan to use hydrogen to reduce carbon emissions in sectors such as transportation, manufacturing, and power generation. TNB, as per its commitment to accomplishing Net Zero by 2050, is exploring the utilisation of ammonia and hydrogen as co-firing options in its generation fleet. In addition, the collaboration offers TNB the opportunity to venture into hydrogen usage in mobility and manufacturing. Through this study, both energy companies, alongside Gentari, the clean energy company founded by Petronas, will gain crucial insights from the opportunities and difficulties presented by the deployment of green hydrogen. Advancements in this endeavor will enable the exploration and discovery of innovative solutions, identification of potential off-takers for green hydrogen and establishment of a synergetic structure between TNB and Petronas.

WEDNESDAY AUGUST 2, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): The Securities Commission Malaysia (SC) aims to promote robust and sound technology risk management practices among capital market entities by issuing its Guidelines on Technology Risk Management. The guidelines are expected to come into effect in the third quarter of this year “to allow sufficient time for capital market entities to familiarise and meet with the requirements of the guidelines”, the SC said in a statement on Tuesday (Aug 1). When formulating the guidelines, the SC took into account feedback received from the Public Consultation Paper on the Proposed Regulatory Framework on Technology Risk Management, which was published last year. Some of the requirements set out in the guidelines include the establishment and implementation of an effective technology risk framework, technology project management, technology service provider management and cyber security management by capital market entities. The SC said the guidelines will be applicable to all capital market entities licensed, registered, approved, recognised or authorised by the SC. Moreover, the SC added that it will be engaging with related capital market entities to provide guidance where required on the requirements of the guidelines. For more information, the guidelines can be found the SC website. SC aims to promote tech risk management practices KUALA LUMPUR (Aug 1): Research houses have raised their target prices (TPs) on Bursa Malaysia Bhd after the local bourse operator registered a 28% improvement in net profit in the second quarter ended June 30, 2023 (2QFY2023). Bursa’s net profit rose to RM76.25 million in 2QFY2023 from RM59.47 million a year before, attributed to operating expenses falling on a one-off reversal of the provision of sales and service tax (SST) on digital services. Quarterly revenue, however, dropped 4.8% to RM144.6 million from RM151.89 million in 2QFY2022. RHB Research has upgraded the counter to “buy” from “neutral”, with its analysts Nabil Thoo and David Chong raising their TP for the stock to RM7.50 from RM6.50, or a 12% upside and circa 4% financial year 2024 (FY2024) forecast yield. The new TP was derived by pegging an unchanged 22.5 times price-to-earnings (P/E) multiple to FY2024 forecast earnings per share (EPS). Both analysts said Bursa’s net profit was above its and consensus estimates and were optimistic that the securities average daily volume (SADV) could rebound in the second half of 2023 (2H2023). They noted that July 2023’s SADV rose to RM2.1 billion from the 2Q2023 figure of RM1.9 billion. Additionally, derivatives average daily Research houses upbeat on Bursa Malaysia after 2Q beats consensus BY SUFI MUHAMAD theedgemalaysia.com BY REYANNA NG theedgemalaysia.com contracts (DADC) traded has surged 10% quarter-on-quarter (q-o-q) and 1% yearon-year on the back of subdued derivatives market activity in 1Q2023. They added that trading on crude palm oil (CPO) futures is also expected to stay robust despite the volatility in CPO on El Nino fears. “We turn bullish on the counter as we believe a favourable exchange rate, undemanding stock valuations and recent positive news flow are strong catalysts for market activity moving forward,” said the two analysts. “We lift FY2023-2025 [forecasts] by 8%- 13% after factoring in the one-off reversal of provisions for FY2023 [forecast] and incorporating higher SADV and DADC assumptions for all three years.” CGS-CIMB maintained its “hold” call on Bursa given its undemanding valuation, and marginally increased its TP to RM6.57 from RM6.54, as its FY2023 forecast P/E of 20.5 times is below the five-year historical Analysts’ calls on Bursa Malaysia Research house Recommendation Target price (RM) Kenanga Investment Bank Market perform 6.25 RHB Research Buy 7.5 AmInvestment Bank Hold 7.2 MIDF Amanah Investment Bank Buy 7.5 TA Securities Holdings Buy 7.3 UOB Kay Hian (Equity) Buy 7.85 Hong Leong Investment Bank Hold 6.88 Citi Sell 5.5 Macquarie Neutral 5.6 CGS-CIMB Hold 6.57 Maybank Investment Banking Group Hold 6.55 Nomura Neutral 7.2 Sadif Investment Analytics Hold 6.97 Affin Hwang Investment Bank Sell 5.1 KAF Equities Hold 6.2 CLSA Reduce 6.9 Source: Bloomberg average while it is supported by FY2023 forecast dividend yield of 4.4%. Analyst Winson Ng has raised its projected FY2023 EPS by 11.9% to factor in the reversal of the SST provision. He noted that Bursa’s net profit was above expectations, accounting for 56% of his full-year forecast and 59% of Bloomberg consensus estimate. “We are projecting a net profit of RM131.1 million for Bursa in 2H2023, representing a marginal decline of 1% q-o-q.” “We expect equity ADTV (average daily trading volume) to improve in 2H2023 from 1H2023’s RM1.96 billion, as we think that, to a certain extent, market sentiment could improve following the announcement of Ekonomi Madani last week, as it provides greater clarity for the roadmap of Malaysia’s economic developments in the next few years,” said Ng. Read the full story

WEDNESDAY AUGUST 2, 2023 9 THEEDGE CEO MORNING BRIEF TO BE REVEALED SOON HONOURING MALAYSIA’S BEST PERFORMING MID-CAP COMPANIES Presented by 2023

WEDNESDAY AUGUST 2, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): Pharmaniaga Bhd is appealing against Bursa Securities’ decision to reject the company’s plan to undertake a second private placement on a stand-alone basis. The appeal was submitted to Bursa Securities on Tuesday (Aug 1), the financially distressed company said in a bourse filing. Pharmaniaga had proposed to undertake the second private placement two weeks ago, involving the placement of up to 144.12 million new shares, representing 10% of the company’s total issued shares, to the Armed Forces Fund Board (LTAT) to raise gross proceeds of up to RM50 million. The money was meant to be used as an interim measure to bridge the company’s working capital requirements while it formulates a plan to regularise its financial condition to address its Practice Note 17 (PN17) status. The proposal comes after Pharmaniaga had previously undertaken a private placement of 131.02 million new shares or 10% of its then share base. That exercise, which was completed on July 24, raised RM45.86 million to fund the company’s working capital. Last week, Bursa Securities informed Pharmaniaga that it was “unable to consider” the second private placement proposal as a fund-raising exercise on a stand-alone basis, as such efforts should be part of the company’s proposed regularisation plan. The second private placement may be included as part of the regularisation plan, the company was told. Bursa Securities informed Pharmaniaga that as a PN17 company, the company must ensure expeditious regularisation of its financial condition to warrant continued trading and on the exchange. Pharmaniaga appeals against Bursa Securities’ rejection of second private placement Sunsuria appoints Tan Wee Bee as new group CEO KUALA LUMPUR (Aug 1): Fiber optic manufacturer Opcom Holdings Bhd has proposed to acquire 5.39 million shares, representing 49% equity interest, in power transmission company Transgrid Ventures Sdn Bhd for up to RM98 million. The transaction will be satisfied via a combination of cash and issuance of new shares in Opcom, the company said in a filing with Bursa Malaysia on Tuesday (Aug 1). It added that the proposed acquisition will enable Opcom to diversify into the power generation and transmission businesses. Opcom has entered into a conditional share sale agreement with M Saraswathy Manikum for the proposed acquisition of Transgrid Ventures and its subsidiaries, namely Transmission Grid Ventures Sdn Bhd, Raub Energy Ventures Sdn Bhd and Transgrid Borneo Sdn Bhd. “The proposed acquisition and diversification exercises will enable Opcom to strategically position itself in the electricity supply industry in Malaysia,” it said. Transgrid Ventures is principally involved in the engineering, procurement, construction and commissioning (EPCC) of power transmission and distribution substation infrastructure, project management and engineering consultancy of power transmission and distribution infrastructure, as well as supply and maintenance of equipment for power transmission and distribution substations. Transgrid Ventures serves the electricity supply industry in Malaysia and its customers comprise utilities companies as well as private corporate clients. Its subsidiary Raub Energy Ventures Sdn Bhd is in the final stages of commissioning a renewable energy power plant using biomass feedstock in Raub, Pahang that will be capable of generating four megawatts of electricity to Malaysia’s National Grid upon its commercialisation, which is targeted in the fourth quarter of 2023. The inter-conditional proposals are expected to be completed in the fourth quarter of 2023. Opcom to buy power transmission firm for up to RM98 mil in diversification move BY PRIYATHARISINY VASU theedgemalaysia.com BY JUSTIN LIM theedgemalaysia.com BY ROWENA JOSEPH theedgemalaysia.com KUALA LUMPUR (Aug 1): Sunsuria Bhd has appointed Tan Wee Bee as its new group chief executive officer, effective Tuesday (Aug 1). The 52-year-old Tan has over 26 years of international experience in the property development and construction industries, having held leadership positions at other property companies. In a press statement on Tuesday, Tan expressed his excitement for the new role, “It is an honour to be entrusted with the responsibility of leading Sunsuria Bhd, an organisation with a rich legacy of excellence. I thank the board for their vote of confidence, and I am excited to work with the team of Sunsuria and build upon the foundation laid by [Sunsuria executive chairman] Tan Sri Ter Leong Yap. Together, we will drive innovation, embrace new opportunities, and achieve greater heights beyond the property development industry,” he said. According to Ter, Tan has proven leadership and exceptional execution skills, with a deep understanding of market dynamics, which will prove invaluable to Sunsuria in fortifying and expanding its position as a market leader both in Malaysia and the broader region. Tan holds a Master of Business Administration from the State University of New York, Buffalo and a Bachelor’s and Master’s degree in Civil Engineering from the National Read the full story University of Singapore.

WEDNESDAY AUGUST 2, 2023 11 THEEDGE CEO MORNING BRIEF HOME Kerjaya Prospek wins two contracts worth RM46 mil in Selangor, Penang KUALA LUMPUR (Aug 1): Kerjaya Prospek Group Bhd’s unit Kerjaya Prospek (M) Sdn Bhd has secured two contracts with a combined value of RM46 million from Eastern & Oriental Express Sdn Bhd (E&OE) and Persada Mentari Sdn Bhd (PMSB) for development projects in Selangor and Penang. In a statement on Tuesday (Aug 1), the company said the first contract valued RM24.7 million from E&OE entails the execution and completion of site clearance, earthworks, drainage works and all other associated works for a proposed mixed development in Shah Alam, Selangor. The project is expected to be completed within 17 months from the scheduled date of commencement of Oct 1. The second contract, which is worth RM21.3 million and was awarded by PMSB, involves the completion of infrastructure works encompassing surface water drainage, water reticulation system, sewerage reticulation system, roadworks and all other associated works for the proposed Seri Tanjung Pinang Phase 2A Development, Penang. The infrastructure works are anticipated to be completed within 12 months from the commencement date of Sept 18. — by Priyatharisiny Vasu Salcon bags piping works construction contract worth RM20.66 mil KUALA LUMPUR (August 1): Wastewater engineering company Salcon Bhd said that its unit Envitech Sdn Bhd received a letter of award worth RM20.66 million dated July 27 from Jurutera MTC Sdn Bhd. Envitech is a 60%-owned subsidiary of Salcon Engineering Bhd, in turn making it a wholly-owned subsidiary of Salcon. In a press release on Tuesday (Aug 1), the group shared that the project comprises external main sewer reticulation works for a piece of land in Batu Kawan, Seberang Perai, Penang for Messrs Eco Horizon Sdn Bhd. Salcon added that the project is expected to be completed in 17 months from the date of possession with an expected completion date of December 31, 2024. — by Reyanna Ng Reservoir Link’s unit bags AWCA contract from Petronas Carigali KUALA LUMPUR (Aug 1): A unit of Reservoir Link Energy Bhd has secured an award from Petronas Carigali Sdn Bhd for the provision of annulus wash and cement assurance (AWCA) equipment and services for M1 and Anding fields. In a statement on Tuesday (Aug 1), the company said its wholly-owned subsidiary Reservoir Link Sdn Bhd commenced the work on the effective date of the award which was July 11, and expected to complete it within 18 months.Under the contract, Reservoir Link will provide annulus wash and cement assurance services that includes creating a circulation tunnel or window across casing in the well and washing or removing defective cement in the annulus behind the casing. The service also includes placing good cement across the annulus and in the casing at depth of interest. — by Priyatharisiny Vasu Cypark to partner Selangor FC’s investment arm to explore renewable energy opportunities KUALA LUMPUR (Aug 1): Cypark Resources Bhd is planning to form an incorporated joint venture company with RGFC Ventures Sdn Bhd, the business and investment arm of Selangor FC, to explore opportunities relating to the development of renewable energy (RE) power plants. The JV is envisioned to be a special-purpose vehicle with Cypark having an 80% interest, and RGFC 20%. In a bourse filing on Tuesday (Aug 1), Cypark said it has signed a memorandum of business exploration (MOBE) with RGFC to participate in and explore opportunities relating to the development of RE power plants and initiatives for solar energy homes, particularly the NetEnergy-Metering programmes — including residential installations — in Selangor. The exploration projects include, but are not limited to, photovoltaic solar power plants, and waste-to-energy power plants. — by Reyanna Ng NEWS IN BRIEF LFE Corp scores a hat-trick, bags RM98 mil worth of projects KUALA LUMPUR (Aug 1): LFE Corp Bhd’s unit has accepted three letters of award worth a combined sum of RM97.84 million, as the subcontractor for the works related to the completion of a factory in Penang. In a bourse filing, LFE Corp said its wholly owned LFE Engineering Sdn Bhd accepted the awards from Circuitry Electrical Engineering Sdn Bhd. All three contracts will take up to 24 months to be completed, LFE Corp said. The first contract, worth RM40.29 million, involves the supply, delivery, installation, testing, commissioning and maintenance of air conditioning and mechanical ventilation. The second contract involves the supply, delivery, installation, testing, commissioning and maintenance of electrical and extra low voltage installation for RM47.55 million. The third contract, valued at RM10 million, is for the supply, delivery, installation, testing, commissioning and maintenance of electric fire protection services. — by Justin Lim Jerasia Capital fails to release quarterly report ended May, cites loss of manpower KUALA LUMPUR (Aug 1): Apparel manufacturer and fashion retailer Jerasia Capital Bhd said it is unable to release its quarterly financial report for the period ended May 31, 2023 within the July 31, 2023 deadline as required by Bursa Securities. In a bourse filing on Tuesday (Aug 1), Jerasia, a financially distressed company, said the delay in the issuance of the quarterly report is due to a significant loss of manpower and loss of critical finance personnel and thus, additional time is needed by the company to finalise its quarterly reports. “The company is taking serious steps towards identifying suitable replacement candidates to rectify these issues and finalise its quarterly report,” it added. Jerasia is expecting to issue and submit its quarterly report by Aug 18. — by Kang Siew Li KERJAYAGROUP.COM JERASIA.BIZ

WEDNESDAY AUGUST 2, 2023 12 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Aug 1): The Federal Court’s three-man bench will deliver its verdict on Aug 18, on the appeal by Tan Sri M Ramasamy, who wants his election petition challenging the 15th General Election (GE15) results for the Segamat parliamentary constituency to go for full trial. Justice Datuk Zabariah Mohd Yusof, who chaired the bench, said the court would not be able to decide on Tuesday (Aug 1) and fixed Aug 18 at 3pm to deliver their decision. The bench, also consisting of Justices Datuk Seri Hasnah Mohammed Hashim and Datuk Mary Lim Thiam Suan, heard the appeal brought by Ramasamy, who is appealing against the Election Court’s decision to strike out his petition. The judges heard submissions from Ramasamy’s counsel Tan Sri Muhammad Shafee Abdullah, lawyer Lau Yi Leong, representing Segamat Member of Parliament R Yuneswaran, and senior federal counsel Suzana Atan, appearing for the returning officer and the Election Commission (EC). Muhammad Shafee argued that Ramasamy’s petition, which was filed to challenge Yuneswaran’s victory for the Segamat parliamentary seat in the GE15, should be remitted back to the Election Court for a full trial to enable witnesses to give evidence on alleged corrupt intentions by Yuneswaran, who was the Pakatan Harapan candidate. He said the allegation that food was given in a Chinese temple with intention to influence voters to vote for the first respondent (Yuneswaran) raises a prima facie (on the first impression) case of an offence under Section 8 of the Election Offences Act 1954. He said the petition was not defective and should not have been struck out on a preliminary objection. He also argued that Ramasamy complied with the requirements of Rule 4 (1) (b) and 4(4) of the Election Petition Rules 1954 by inserting sufficient material facts to support his case. Muhammad Shafee said there was also non-compliance with the requirements of the Election Offences Act when Form A on the oath of secrecy was not signed by Yuneswaran’s representative before the returning officer and that Form A had been pre-signed by the returning officer. He said the Election Court judge erred when he stated the act of treating people to food at a temple on Nov 18, last year cannot be implied to have presupposed the result of the election petition. Federal Court to deliver verdict on MIC man’s Segamat seat appeal on Aug 18 KUALA LUMPUR (Aug 1): Datuk Seri Ahmad Zahid Hamidi’s former secretary testified on Tuesday (Aug 1) that the deputy prime minister had never sanctioned the use of stamps bearing his signature on cheques when dealing with his day to day accounts. Datuk Rosiah Osman, who served as Zahid’s secretary from January 1994 until her mandatory retirement in December 2011, said the signature stamps were only used for signing festive greeting cards and certificates to save time and effort. She explained that Zahid used to issue around 4,000 greeting cards during festivals like Hari Raya Aidilfitri, and in the case case of certficates, about 500 copies are issued each time. “Signing them one by one would have been very tiring,” she testified in Zahid’s corruption and criminal breach of trust trial at the High Court. Rosiah said she always kept the stamps bearing his signature in a locked metal cabinet. She said that upon her retirement in 2011, she had handed over all the stamps and cheque books involving Zahid personally and his charitable foundation Yayasan Akalbudi, to her successor Major Mazlina Mazlan @ Ramly in December 2011. Zahid’s lawyer Hamidi Mohd Noh then showed Rosiah a number of cheques which Major Mazlina had issued in 2014 and 2015 for Yayasan Akalbudi where Zahid’s stamped signature was used to sign off. She said that banks should not have allowed this. When Zahid took the stand in his defence last year, he testified that Mazlina had been negligent in handling his accounts as well as finances in Yayasan Akalbudi which led to him being charged. He had said that among the negligence his former executive secretary committed was failing to understand and read his credit Zahid did not sanction use of signature stamp on cheques, ex-secretary tells court card statements which caused her to make either insufficient or excessive payments. He said Mazlina had testified in court that she did not know, was unsure and could not remember matters regarding the management of his credit card bills, apart from admitting to being negligent in handling the expenses. Zahid had testified that Mazlina used the stamps without his knowledge. “Mazlina had used my signature stamp on the Yayasan Akalbudi cheques that were used to pay for personal credit card bills as well as my wife’s (Datin Seri Hamidah Khamis) without my knowledge... the stamp should have been used on certificates of appreciation and festive season greeting cards,” he had said. Zahid, who is also Umno president and Barisan Nasional chairman, is facing 47 charges. He claimed trial to the 12 counts of criminal breach of trust (CBT), eight counts of corruption, and 27 counts of money laundering, involving RM31 million of Yayasan Akalbudi funds. For the 12 CBT charges, Zahid is alleged to have used the funds to make payments for personal credit cards, insurance policies and licences for his personal vehicles, remittances to a law firm, and contributions to the Royal Malaysian Police football association. The charges, under Section 409 of the Penal Code, each carries a maximum of 20 years in jail, whipping and fine. The trial continues before judge Datuk Collin Lawrence Sequerah on Wednesday (Aug 2). BY TIMOTHY ACHARIAM theedgemalaysia.com Bernama Read the full story ZAHID IZZANI /THE EDGE

WEDNESDAY AUGUST 2, 2023 13 THEEDGE CEO MORNING BRIEF

WEDNESDAY AUGUST 2, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 1): The electronic invoicing, or e-invoicing system will be implemented in the first half of 2024 (1H2024), echoing the government’s digitalisation agenda. Inland Revenue Board of Malaysia (LHDN) chief executive officer Datuk Dr Mohd Nizom Sairi said e-invoicing would streamline and enhance the country’s tax system, promote transparency and give a more accurate compliance risk assessment. “It will also address the revenue leakage issue resulting from the shadow economy,” he said at the National Tax Conference 2023 here on Tuesday (Aug 1). He also said that LHDN has put in place the Tax Corporate Governance (TCG) programme to accommodate tax certainty. “This initiative serves as a platform for both tax administration and taxpayers to collaborate in an open and honest manner, to enhance the organisation’s corporate tax compliance affairs,” he said. Mohd Nizom said it is worth noting that the ongoing Special Voluntary Disclosure Programme 2.0 (SVDP 2.0) focuses more on getting new taxpayers to participate in reporting their income to IRB, than it does on increasing tax collection. “It is hoped that this programme will ultimately help taxpayers fulfil their tax obligations to the nation, and support sustainability for generations to come,” he said. The two-day National Tax Conference 2023’s theme “Taxation: Driving Force for Economic Sustainability” has been coined based on the importance of this fiscal tool in nation building. Mohd Nizom said economic sustainability is without a doubt one of the key pillars for the country to recover, remain resilient and grow amid the uncertainties of the global economic outlook. “Had we not been sustainable in our revenue stream, it would have been next to impossible to bring the nation out of the crisis we were in,” he pointed out. Therefore, the necessity of taxes cannot be emphasised enough, especially in the current volatile environment, when the government is dependent on revenue from taxes, among others, for economic growth and national development, he said. LHDN: e-invoicing will be implemented in 1H2024 S-MM2H participants can now work in Sarawak — Abdul Karim KUALA LUMPUR (Aug 1): The implementation of the Madani Economy does not require any additional expenditure this year, and will still be in accordance with government expenditure allocations tabled in Budget 2023, said Economy Minister Mohd Rafizi Ramli. He said the government will spend based on allocations approved by Parliament, and follow the expenditures set under the budget. “We have to spend according to what has been approved by Parliament. We cannot just spend as we like, but must instead follow certain ways,” he told reporters on the sidelines of the National Tax Conference 2023 here on Tuesday (Aug 1). He said that the government, for example, can re-prioritise budgets approved for certain projects or ministries. “We can prioritise and rearrange, so the government can spend more on certain areas that it thinks are important for realising the Madani Economy, without overshooting the budget set,” he said. The Madani Economy framework announced by Prime Minister Datuk Seri Anwar Ibrahim on July 27 is aimed at making Malaysia a leading economy in Asia and improving the people’s quality of life. On April 5, the Dewan Negara passed the Supply Bill 2023 (Budget 2023) with a budget allocation of RM388.1 billion comprising RM289.1 billion for operating expenditure and RM99 billion for development expenditure, including RM2 billion as contingency savings. KUCHING (Aug 1): Foreigners who participate in Sarawak-Malaysia My Second Home (S-MM2H) programme are now allowed to work in the state. Sarawak’s Tourism, Creative Industry and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah said the state cabinet approved approved the refinements on the application procedures to participate in the programe which would take effect from Tuesday (Aug 1), during a meeting last Thursday (July 27). “Those involved in S-MM2H, they are given permission to work. Before this totally no (participants allowed to work),” he told a press conference here on Tuesday. Abdul Karim said successful applicants for the programme had been informed of the approval for work a few months ago and the jobs allowed included part-time lecturing or being a minority partner in companies set up in the state. “For any part time work, it must be based on sectors where there are not many Sarawakians available and it must be approved by Immigration, Labour Monitoring Unit (ILMU) in the Sarawak Premier Department,” he said. Abdul Karim added that applications must be made through the ministry and it will be forwarded to the State Secretary’s office, which has a committee to approve applications. Rafizi: Madani Economy’s implementation does not call for additional expenditure Bernama Bernama Read also: Rafizi: Govt allocating RM40 mil to recruit young workers under ‘Academy in Industry’ programme till end of the year Bernama Read the full story BERNAMA

WEDNESDAY AUGUST 2, 2023 15 THEEDGE CEO MORNING BRIEF HOME ALOR SETAR (Aug 1): Home Minister Datuk Seri Saifuddin Nasution Ismail revealed several photos of Menteri Besar Incorporated (MBI) documents related to the theft of rare earth elements (REE) in Bukit Enggang, Sik, Kedah on Tuesday (Aug 1). The photos he shared included one showing caretaker Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor with an individual believed to be So Loi Fat, one of two employees brought in by MBI to conduct exploration work in the forest reserve. “I also wish to show documents signed by MBI chief executive officer (CEO) Muhammad Sobri Osman. So, here clearly is an application for professional visit passes for two China nationals who were working for MBI as their employer. “The letter is really from the menteri besar and CEO with the names of two China nationals... I have brought this up many times but Muhammad Sanusi has tried to spin the matter with other issues. So I hope he will take the responsibility and answer all questions brought up relating to the REE issue,” he said at a media conference here on Tuesday. Saifuddin Nasution said Tuesday’s exposé was to provide a clearer picture to Muhammad Sanusi, who has often issued statements denying any knowledge about the theft of REE. “Denials from the menteri besar and Muhammad Sobri about the two China nationals will create more questions, especially by the people. I also am given to understand that a police report has been lodged by the MBI administration and human resource manager, so I welcome that so that investigations can continue. “I also ask that the Kedah state Land and Mines Office director provide feedback as to why the department did not conduct an investigation into the REE theft... is it because the department is under the MBI board of advisors, and they wish to protect someone? I am waiting for answers,” he said. Saifuddin Nasution, who is also Pakatan Harapan (PH) secretary general, also refuted Muhammad Sanusi’s statement that he was using his position as home minister to instruct enforcement agencies to pressure him. “He (Muhammad Sanusi) actually has access to obtain information from every agency in Kedah. I am convinced he can answer and I give him time to do that... this matter has been exposed by others. I am only arranging things properly,” he added. Media outlets have reported previously that Muhammad Sanusi claimed he had no executive power over MBI and was not in the know regarding the operations as well as the status of the two China nationals brought in by MBI to explore REE. Meanwhile, Sanusi admitted that he did know So Loi Fat as ‘Mr So’ and had communicated with him through an interpreter as he was not fluent in English and Malay, but denied that he had brought ‘Mr So’, who has been linked with the theft of REE in Bukit Enggang, into the country. “Saifuddin’s accusations about my drafting the letter for So Lai Fat to enter Malaysia... no, I came to the office, he (So Lai Fat) was already in Malaysia for a long time,” he told reporters after attending a programme in Taman Sri Putra Kuala Kedah here Tuesday. Saifuddin reveals photo of Kedah caretaker MB with Chinese national linked to rare earths theft KUALA LUMPUR (Aug 1): Malaysia Airports Holdings Bhd (MAHB) said it is proactively taking steps to address the issue of wildlife smuggling at its airports following several wildlife smuggling cases involving passengers departing from Malaysia recently. The airport operator said it will cooperate with airlines and all relevant agencies in their respective enforcement activities. It also highlighted that continuous engagements with the agencies have resulted in collaborative operations of enhancing security checks and baggage screening for targeted flights, according to its statement on Tuesday (Aug 1). MAHB said it remains guided by the International Civil Aviation Organization (ICAO) International Standards and Recommended Practices, to prevent unauthorised carriage of weapons, explosives or any dangerous items, on board an aircraft engaged in civil aviation. “In compliance to this, all airports under MAHB utilise an approved automated baggage screening system. KL International Airport (KLIA) has five levels of screening that are calibrated to detect weapons, explosives, devices, articles, and substances that pose a danger to the airport community and passengers or crew on board aircraft,” it said. MAHB also clarified that capturing and prosecuting traffickers of illegal or illicit drugs and wildlife is under the jurisdiction of existing relevant laws, which fall under the purview of other agencies, namely the Royal Malaysian Customs Department (JKDM), Department of Wildlife and National Parks of Peninsular Malaysia, Malaysian Quarantine and Inspection Services and Royal Malaysian Police. “MAHB is currently working with customs intelligence of other international airMAHB to take active steps to address wildlife smuggling ports to gain insights into recent smuggling trends and challenges in combating trafficking. Moving forward, MAHB will also be engaging with the Civil Aviation Authority of Malaysia (CAAM), to further step up monitoring mechanisms and allow for more vigilant checks to be conducted based on data-driven assessments of highrisk flights,” it said. Earlier in April, Bernama reported that Indian authorities intercepted a woman who was found carrying 22 snakes after arriving at Chennai airport from Kuala Lumpur. Checks showed that her baggage contained 22 snakes and a chameleon, packed in transparent plastic containers. JKDM, however, clarified that the checked-in baggage was under the jurisdiction of MAHB auxiliary police. Meanwhile, on Tuesday (Aug 1), it was reported that customs officials at Tiruchirappalli airport in southern India seized 47 pythons from an Indian national arriving from Kuala Lumpur. MAHB shares closed unchanged at RM6.90 on Tuesday, for a market capitalisation of RM11.51 billion. BY ANIS HAZIM theedgemalaysia.com Bernama

WEDNESDAY AUGUST 2, 2023 16 THEEDGE CEO MORNING BRIEF WORLD BENGALURU (Aug 1): Asset manager BlackRock and index provider MSCI are being investigated by a congressional committee for allegedly facilitating China investments, The Wall Street Journal reported on Tuesday (Aug 1), citing letters to the companies from the panel. The House of Representatives’ Select Committee on the Chinese Communist Party told the companies that a review of some of their activities showed Americans had funded more than 60 Chinese companies that US agencies had flagged on security or human rights grounds, the report said. BlackRock, MSCI and the committee did not immediately respond to Reuters’ requests for comment outside normal business hours. US-China relations are at a crucial juncture, as two of the world’s biggest economies clash over a range of hot-button issues, such as Taiwan and Russia’s invasion of Ukraine. Last month, China curbed exports of some metals widely used in the semiconductor industry, in a move it said was aimed at protecting national security. BlackRock, MSCI face probe for allegedly facilitating China investments — report LONDON/TOKYO (Aug 1): Global factory activity took a further turn for the worse in July, private surveys showed on Tuesday (Aug 1), a sign slowing growth and weakness in China were taking a toll on the world economy. The downturn highlights the dilemma for policymakers who embarked on aggressive tightening cycles in a battle to keep inflation at bay and yet also need to try and forestall potential recessions. A Purchasing Managers’ Index (PMI) covering the euro zone as a whole showed manufacturing activity contracted in July at the fastest pace since Covid was cementing its grip on the world as demand slumped despite factories cutting their prices sharply. There was considerable weakness in Germany, Europe’s largest economy, while France and Italy, the second- and third-largest euro zone economies, also recorded marked deteriorations since June. HCOB’s final euro zone manufacturing PMI, compiled by S&P Global, fell to 42.7 in July from June’s 43.4, its lowest since May 2020 and matching a preliminary reading. A reading below 50 marks a contraction in activity. An index measuring output, which feeds into a composite PMI due on Thursday and seen as a good gauge of economic health, dropped to 42.7 from 44.2, a low not seen in over three years. The manufacturing downturn in Germany deepened at the start of the third quarter as goods producers recorded sharper declines in new orders, data showed. Meanwhile, France’s factory sector contracted further in July although the downturn was not quite as bad as first forecast. “Today’s PMI results are an indicator of the ongoing uncertainty that the euro zone manufacturing sector is currently facing,” said Thomas Rinn, global industrial lead at Accenture. “Demand is going through a rocky patch. Dwindling output coupled with the knock-on effects of inflation, labour shortages and shifting customer preferences, all continue to put a squeeze on businesses.” In Britain, outside the European Union, factory output contracted in July at the fastest pace in seven months, hit by higher interest rates and fewer new orders, despite weakening price pressures. Asian strain Japan, South Korea, Taiwan and Vietnam saw manufacturing activity contract in July, surveys showed, highlighting the strain sluggish Chinese demand is inflicting on the region. World factory activity shrinks as China, slowing growth take toll China’s Caixin/S&P Global manufacturing PMI fell to 49.2 in July from 50.5 in June, missing analysts’ forecasts of 50.3 and marking the first decline in activity since April. The data was in line with the government’s official PMI on Monday, raising challenges for policymakers seeking to revive momentum in China’s post-Covid recovery. “Manufacturing PMIs remained in contractionary territory across most of emerging Asia last month and the underlying data point to further weakness ahead,” said Shivaan Tandon, emerging Asia economist at Capital Economics. “Falling new orders, bleak employment prospects and high inventory levels point to subdued factory activity in the coming months.” Japan’s final au Jibun Bank PMI fell to 49.6 in July, from 49.8 in June, due to weak domestic and overseas demand. South Korea’s PMI stood at 49.4 in July, up from 47.8 in June but staying below the 50-threshold, a survey by S&P Global showed. Taiwan’s manufacturing PMI fell to 44.1 in July from 44.8 in June, while the index for Vietnam rose to 48.7 from 46.2, surveys showed. In India, growth in manufacturing activity slowed for a second month, but the pace of expansion remained healthy and beat expectations. Asia has been among the few bright spots in the global economy, though China’s slowdown clouds the outlook. In revised forecasts issued in July, the International Monetary Fund projects emerging Asia’s economic growth will accelerate to 5.3% this year from 4.5% in 2022. It expects China’s economy to expand 5.2% this year after a 3.0% increase in 2022. Read also: Stocks, oil slide as gloomy data tempers optimism on economy BY JONATHAN CABLE & LEIKA KIHARA Reuters BY NIKET NISHANT Reuters Japan, South Korea, Taiwan and Vietnam saw manufacturing activity contract in July, surveys showed, highlighting the strain sluggish Chinese demand is inflicting on the region. REUTERS

WEDNESDAY AUGUST 2, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Aug 1): China’s home sales tumbled the most in a year in July, underscoring why policy makers are seeking to address a property slowdown that’s weighing on the economic recovery. The value of new home sales by the 100 biggest real estate developers fell 33.1% from a year earlier to 350.4 billion yuan (RM220.82 billion), according to preliminary data from China Real Estate Information Corp. The drop was the second in a row, after four months of gains. Sales slid 33.5% month-on-month. The slump in transactions is a blow to developers which need cash to alleviate a multi-year credit crisis that is showing no sign of easing. Country Garden Holdings Co, which faces US$2.9 billion in debt payments for the rest of the year, cancelled a share placement overnight, according to IFR. “The weak sales trend, if continued, will lead to more developers, especially private ones, to default in the near future,” Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities, said before the figures were released. China’s State Council called on cities to start introducing policies to ensure the healthy development of their property markets, China Central Television reported China’s home sales drop most in a year as slowdown worsens (Aug 1): China has pledged to boost credit to private companies and extend other funding measures to small firms, as policymakers seek ways to shore up confidence and support the recovery. The nation will expand a bond credit enhancement tool that is backed by financial institutions to all qualified private companies, the National Development and Reform Commission (NDRC) said in a notice posted on Tuesday (Aug 1) on its website. In the past, the policy has mainly been used to help cash-strapped property developers raise funds from the bond market. The notice included 28 points aimed at broadening market access, enhancing financial support and promising to meet demand among firms for land, strengthening legal protections, and cracking down on negative commentary about the private sector. “The measures are based on the needs of private firms and focused on resolving the outstanding problems faced by the sector,” said NDRC official Wang Shancheng at a briefing on Tuesday. “We expect them to be pragmatic, and want effects to kick in in the near term.” The measures from the NDRC, China’s top economic planning agency, flesh out promises top leaders including President Xi Jinping have made to promote the growth of the private sector as the nation’s recovery searches for a stronger footing. Policymakers are focusing on how to rebuild confidence among private firms after the sector was battered by pandemic-related restrictions, as well as regulatory crackdowns on the tech and property sectors. Companies are now holding back from investing or hiring, weighing on an economy that is also dealing with challenges from a property slump, falling exports and soaring youth unemployment. The slew of policy sweeteners have contributed to a rally in China’s financial markets, where investors are betting that regulators will act swiftly on the Politburo’s promises of support after weeks of disappointment over a lack of execution. A gauge of Chinese shares traded in Hong Kong was unchanged as of the midday break on Tuesday. Still, it has jumped about 10% since the Politburo meeting. The mainland’s benchmark CSI 300 Index has gained around 5% during the same period, although it booked a marginal loss on Tuesday morning. “The measures enhance the strength and expand the scope of previous funding support for the sector, addressing the short-term needs of private firms,” said Bruce Pang, the head of research and chief economist for greater China at Jones Lang LaSalle Inc. For the long term, lifting the barriers to market entry would be key, Pang said, adding that he expects private investment to return to positive year-on-year growth in the fourth quarter. China vows more loan support for businesses to spur economy Bloomberg Bloomberg after a meeting chaired by Premier Li Qiang on Monday (July 31). The Communist Party’s top decision-making body last week pledged to optimise and adjust policies for the property sector. The Politburo also dropped a reference to President Xi Jinping’s mantra that homes are for living in rather than speculation. Existing policies have so far failed to sustain a housing rebound, putting the government’s 5% annual economic growth target at risk. Home prices have resumed falling while property investment continues to shrink. Chinese authorities are moving to address developers’ funding strains. In July, regulators extended loan relief for builders to ensure the delivery of homes under construction. The securities watchdog vowed to ensure developers’ funding in both debt and stock markets. Year-to-date growth in fixed asset investment by private firms has been negative since May, official data showed. The NDRC also reiterated support for the healthy development of internet platform companies, and vowed to unveil more investment projects by such companies. A pro-growth pledge singling out those types of firms was included last week in a readout of a meeting by the Politburo, the ruling Communist Party’s top decision-making body. The agency said the size of credit loans for private firms would be expanded. In addition, they promised to push government agencies and state-owned enterprises to pay receivables owed to private companies — a measure that could bring meaningful help “if a deadline and enforcement mechanism is introduced”, said Ding Shuang, the chief economist for greater China and North Asia at Standard Chartered plc. Authorities have announced other actions in the wake of that Politburo meeting. On Monday, China’s State Council, the country’s Cabinet, called on cities to introduce policies to ensure the healthy development of their property markets. Earlier in the day, officials released a broad plan to boost consumption. “The risk is actually having too long a list with the key measures being diluted,” said Ding of Standard Chartered. “Implementation is essential to gradually rebuilding confidence, and it will take time.” “What matters more is to foster an environment, in which private business feels comfortable to invest, with clear and fair rules that can be expected to be abided by all parties,” he said. BLOOMBERG

WEDNESDAY AUGUST 2, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Aug 1): Tencent Holdings Ltd has fallen out of favour with mainland Chinese investors burned by volatility and sentiment-driven trading. Getting them back on side may prove elusive. For the first time since 2021, onshore investors have sold Tencent shares on a net basis for two months in a row, according to Bloomberg’s calculations of exchange data. In July, mainland investors offloaded HK$2.9 billion (US$375 million or RM1.68 billion) through trading links between Hong Kong, Shenzhen and Shanghai exchanges. A former retail trader favourite and China’s most valuable company, Tencent has seen its fortunes wane as concerns about the company’s outlook and selling by its largest shareholder rattle investors. Onshore investors are a pillar of support for the stock, and their withdrawal is likely to add to the pressure when shares are struggling to recover from a five-year low in October. “Mainland investors all agree it’s cheap, but the price moves of 2022 have just proven that things can go quite extreme in the Hong Kong market,” said Cai Dian, a fund manager at Beijing Eastern Smart Rock Asset Management. He was bullish on the stock as well as other Chinese tech shares over the last two years. The company is still making money, but it’s not a good time to buy given that selling by its largest shareholder is weighing on the stock, he added. Chinese investors have been known for their long-standing support for Tencent since the stock was listed in Hong Kong nearly two decades ago. They helped cushion the blow when foreign investors fretted about Beijing’s crackdown on the private sector back in 2021, and also when the company’s biggest shareholder Prosus NV announced plans to offload its stake in June. But they’ve had enough. The stock remains too volatile and the price doesn’t trade according to fundamentals, they say. Since pulling out of the market in June, Tencent’s shares have gained about 15% to underperform a 28% jump in the Hang Seng Tech Index. This means that Tencent is missing out on a rally fuelled by recent policy pledges for the sector that’s sent Chinese tech into a bull market just last week. “Southbound selling will, to some extent, hinder the rebound of Tencent. The stock has underperformed in the rebound,” said Willer Chen, a senior research analyst at Forsyth Barr Asia Ltd. Investors may have moved out of Tencent to buy some higher beta names amid the risk-on sentiment in the Chinese market recently, he added. And it’s not just domestic traders who want out. Tencent’s put-to-call ratio, which underscores bearishness of a stock, has picked up since June after a sharp pullback earlier this year. Read the full story Tencent becomes market laggard as Chinese traders sell (Aug 1): Major Chinese developer Country Garden Holdings Co Ltd slid in equity and credit markets after it cancelled a share placement, just as a cash crunch fuels concern about its ability to avoid a first-ever default. The builder’s closely watched dollar bond due January next year, its nearest such maturity, dropped 2.34 cents on Tuesday to 32.5 cents, a level that indicates high uncertainty on repayment. Its stock fell as much as 11%, the biggest drop this year, before paring some of the losses. The firm scrapped a primary share placement of HK$2.34 billion (US$300 million) after offering shares at HK$1.30 apiece, a person with knowledge of the matter said, attributing the move to unspecified internal considerations. The company later said in a filing that no definitive agreement had been reached on its proposed financing plan, and added it’s not considering the transaction at this stage. One of China’s largest private-sector developers, Country Garden could have used that money to help repay a portion of US$2.9 billion in bond debt, across all currencies, due the rest of the year. Any payment failures would send fresh shockwaves through the broader property market that authorities have been trying to stabilise amid a years-long debt crisis and record defaults. Home sales tumbled the most in a year in July, adding urgency for policymakers to act swiftly on promises to facilitate funding. “Country Garden is at high risk of defaulting, unless there is imminent policy support from the government to aid the developer’s access to financing at the enterprise level,” said Leonard Law, senior credit analyst with Lucror Analytics, a proCountry Garden sinks as cancelled share sale worsens funding woes vider of research on the high-yield bond market. “The survivability of Country Garden hinges on the policy. Currently, it is uncertain if such support would come.” There were already market signs of wider impact on Tuesday. Chinese developer shares mostly traded lower on renewed placement concerns. A Bloomberg Intelligence gauge of developer shares fell as much as 3.2%, led by Shimao Group which was down almost 30%. Investors are increasingly doubtful whether Country Garden, which was China’s top developer at the end of last year, can maintain its reputation as a rare survivor of the wave of defaults that has engulfed the sector since early 2021. The builder said on Monday that it expects to swing back to a net loss for the first half this year, underscoring how an enduring property slump is weighing on some of the strongest private builders. JPMorgan Chase & Co downgraded the stock last week, as liquidity concerns surrounding China’s private developers are unlikely to ease anytime soon. Country Garden said in a filing that it will try to ensure the security of cash flow through various measures, including “managing and optimising debt repayment arrangement”. Read the full story Bloomberg BY JEANNY YU Bloomberg BLOOMBERG

WEDNESDAY AUGUST 2, 2023 19 THEEDGE CEO MORNING BRIEF WORLD BEIJING (Aug 1): China’s export controls on some gallium and germanium products take effect on Tuesday (Aug 1) with traders braced for a drop in international supply in August and September while exporters sort out newly required permits. China, the world’s top supplier of the two minor metals used to make semiconductors, in early July announced restrictions on the exports of eight gallium and six germanium products, citing national security reasons. Exporters of these products from Tuesday need to apply for export licences for dual-use items and technologies, four traders said. Two of the sources told Reuters they are still preparing needed documents and are likely to file their applications in the coming week. Dual-use refers to items and technologies with civil as well as potential military applications, according to China’s Ministry of Commerce. The ministry did not immediately respond to a Reuters request for comment. It typically takes about two months to obtain such licences, the traders and two producers said. It was unclear how many licences would be issued, they added. Stockpiles outside China, which could last for two to three months, will need to be tapped while traders await Beijing’s export permit approvals, said Willis Thomas, a consultant at London-based consultancy CRU. At the same time, the export restrictions are expected to result in a growing surplus of the products in China. Offer prices for gallium ingot at Rotterdam jumped 43.4% to US$370 per kg last week, from US$258 per kg in late June. Offers for germanium ingot at Rotterdam rose 9.1% to US$1,473 per kg last week, from US$1,350 per kg one month earlier, according to the China Nonferrous Metals Industry Association. CRU’s Thomas said he expects prices to rise and stay supported over the next several months before cooling down by the end of the year as China’s exports and overseas supply are expected to improve. China’s wrought germanium and germanium products exports in the first half of the year totalled 27,825kg, up 75.5% from a year earlier, customs data showed. Exports of wrought gallium and gallium products totalled 17,565kg, down 53.5%. As China’s controls take effect, wait for gallium, germanium export permits begins (Aug 1): There’s a shift in tone happening across Wall Street. Oppenheimer Asset Management’s Chief investment strategist John Stoltzfus lifted his target on the S&P 500 index to a Street high, a day after Morgan Stanley’s Michael Wilson, one of the market’s leading doomsayers, sounded less bearish than usual. Stoltzfus now sees the S&P 500 index hitting 4,900 by the end of the year, leaving room for another 7% gain. The target would mark a new record for the gauge, and one that plays out against bearish predictions by bigwigs such as Wilson, JPMorgan Chase & Co’s Marko Kolanovic and Bank of America Corp’s Michael Hartnett. They were all blindsided by the resilience of the US economy and the sudden emergence of the artificial intelligence-driven tech rally. US equities have soared this year as investors looked past the earnings recession, growing confident that the economy would avoid any serious slowdown while anticipating less hawkish monetary policy. Even so, the most recent median forecast among Wall Street strategists tracked by Bloomberg still showed a decline for the index by year-end. “A broadening of the rally across S&P 500 sectors suggests that the bull market that emerged from the October 2022 lows has legs to run higher into 2024,” Stoltzfus said. He correctly predicted US stocks would rally in October last year, when he remained bullish on equities amid resilient economic fundamentals, though the S&P 500 ended 2022 slightly lower than his target for that year. “The Fed’s rate cycle now appears to be closer to a pause or an end than it has been since March of 2022,” Stoltzfus said. The S&P 500 would end the year about 28% higher if Stoltzfus’s prediction materializes, which would be the best performance since 2019 — when US stocks were tracking the same path as they are now, according to Morgan Stanley’s Wilson. Strategists scramble to catch up as S&P 500 rally rumbles on Meanwhile, Citigroup Inc strategist Scott Chronert also shifted to the bull camp as he raised his target to reflect the increased probability of a soft landing. That came just one month after he said the S&P 500 rally will run out of steam. Read the full story Read also: Wall Street economists are looking at a September rate pause Federal Reserve Chair Jerome Powell has left the door open to another interest-rate hike, but Wall Street economists see the signs pointing in one direction ahead of the central bank’s September meeting: pause. BY FARAH ELBAHRAWY Bloomberg BY BEIJING NEWSROOM & ANDREW HAYLEY Reuters

WEDNESDAY AUGUST 2, 2023 20 THEEDGE CEO MORNING BRIEF WORLD (Aug 1): Toyota Motor Corp’s quarterly profit exceeded estimates, as improvements in supply of semiconductors and a weak yen helped it capitalise on a global rebound in demand for vehicles. The stock closed at a record high. Operating profit for the three months through June was a record ¥1.1 trillion (US$7.7 billion or RM34.80 billion), the world’s No 1 carmaker said in a statement on Tuesday (Aug 1). That compared with ¥880 billion projected by analysts. Toyota kept its outlook for operating income for the fiscal year at ¥3 trillion. Demand for automobiles is robust following the pandemic downturn, prompting carmakers to boost production and raise prices. Toyota made and sold a record number of vehicles in June. It is also on track to increase production between August and October, according to recent reports. “When considering exchange rates, production and the market environment, Toyota keeping its outlook was a bit of a surprise,” Bloomberg Intelligence analyst Tatsuo Yoshida said. Net sales for the fiscal first quarter rose 24% to ¥10.6 trillion, topping the prediction for ¥9.8 trillion. For the full year, Toyota kept the revenue outlook at ¥38 trillion. The company’s shares rose 2.5% in Tokyo, building on Monday’s 3.3% gain to reach ¥2,445.50 — a record based on data compiled by Bloomberg going back to 1974. The share price reflected a five-forone stock split in October 2021. Toyota said it was able to command higher prices for vehicles, helping to “reduce the impact of the sharp rise in material prices”. Toyota profit tops estimates, sending shares to all-time high (Aug 1): HSBC Holdings plc announced a new buy-back programme and painted a bullish outlook for its 2023 earnings, joining peers in benefiting from global rate rises that have been boosting income. The London-based lender, which generates most of its income in Asia, will repurchase an additional US$2 billion (RM9.03 billion) on top of a previous programme announced just three months ago, according to a second-quarter earnings statement on Tuesday (Aug 1). HSBC also said it is now expecting net interest income for 2023 to be above US$35 billion, up from more than US$34 billion. Its net interest margin rose to 1.72%, pushing pre-tax profits to US$8.8 billion in the three months through June, beating a company-compiled analyst estimate of US$7.96 billion. “If you take one thing from today’s results, it’s our strategy is working,” chief executive officer Noel Quinn said in a media call, later stressing to analysts that the bank’s wealth business continued to gather momentum, particularly in Asia. HSBC shares had risen 2.46% as of 8.23am in London. HSBC is in the midst of a strategic repositioning of its business in a pivot towards Asia, with more of the group’s resources focused on capturing growth in faster-growing markets. The lender has been under pressure from top shareholder Ping An Insurance Group Co to improve returns, even as the insurer failed to gain the backing of other investors to compel HSBC to report regularly on a possible carve-out of the Asian unit. “That matter is now closed from the point of view of HSBC,” Quinn said on a Bloomberg Television interview. The results make HSBC the latest lender to see profitability surge on higher lending income. Smaller rival Standard Chartered plc also raised its forecasts last week after strong second-quarter earnings. Still, banks are coming under pressure to pass on more of the rate rises to savers. They have only passed through about a quarter of interest rate rises to consumers, the UK’s Financial Conduct Authority has said, as it warned of “robust action” for firms that don’t transfer benefits to consumers. HSBC announces fresh buy-back as higher rates propel profits Uber swings to surprise profit as ridership reaches new record BY HARRY WILSON & AMBEREEN CHOUDHURY Bloomberg BY JACKIE DAVALOS Bloomberg BY NICHOLAS TAKAHASHI Bloomberg (Aug 1): Uber Technologies Inc reported better-than-expected net income, boosted by record ridership volumes, offering evidence the ride-hailing giant is officially moving beyond its cash-burning startup past and making progress on its profitability goals. The company generated net income of US$394 million (RM1.7 billion) in the second quarter, far surpassing the loss of US$49.2 million analysts were expecting, thanks in large part to unrealised gains in equity investments. The company also generated its first-ever operating profit according to generally accepted accounting principles, of US$326 million, and recorded freecash-flow of US$1.14 billion. The shares rose about 3.7% in premarket trading in New York. “Both of these milestones were achieved through a combination of disciplined execution, record audience, and strong engagement,” chief executive officer Dara Khosrowshahi said in prepared remarks. He added that the company was “well-positioned to sustain strong, incremental profit generation.” Uber projected gross bookings of US$34 billion to US$35 billion in the current quarter and adjusted earnings before interest, tax, depreciation and amortisation of US$975 million to US$1 billion, both beating analysts’ forecasts. The company also announced that chief financial officer Nelson Chai is stepping down effective Jan 5, marking one of the most high-profile departures since the company went public in 2019. A search for his replacement is underway. Read the full story Read the full story Read the full story Read also: BP boosts dividend even as profit slumps 70% to US$2.6 bil

WEDNESDAY AUGUST 2, 2023 21 THEEDGE CEO MORNING BRIEF WORLD BENGALURU (Aug 1): Meta Platforms is preparing to launch a range of artificial intelligence (AI)-powered chatbots that exhibit different personalities as soon as September, the Financial Times (FT) reported on Tuesday (Aug 1). Meta has been designing prototypes for chatbots that can have humanlike discussions with its users, as the company attempts to boost its engagement with its social media platforms, according to the report, citing people with knowledge of the plans. The Menlo Park, California-based social media giant is even exploring a chatbot that speaks like Abraham Lincoln, and another that advises on travel options in the style of a surfer, the report added. The purpose of these chatbots will be to provide a new search function as well as offer recommendations. The report comes as Meta executives are focusing on boosting retention on its new text-based app Threads, after the app lost more than half of its users in the weeks following its launch on July 5. Meta declined to comment on the FT report, when contacted by Reuters. The Facebook parent reported a strong rise in advertising revenue in its earnings last week, forecasting third-quarter revenue above market expectations. The company has been climbing back from a bruising 2022, buoyed by hype around emerging AI technology, and an austerity drive in which it has shed around 21,000 employees since last fall. Meta launched a new version of its open-source AI model in July called Llama 2 for commercial use, which will be distributed by Microsoft through its Azure cloud service, and will run on the Windows operating system. Bloomberg News reported in July that Apple is working on AI offerings similar to OpenAI’s ChatGPT and Google’s Bard, adding that it had built its own framework, known as “Ajax”, to create large language models, and is also testing a chatbot that some engineers call “Apple GPT”. Meta preparing AI-powered chatbots in attempt to retain users — report (Aug 1): Apple Inc’s main supplier, Foxconn Technology Group, plans to increase its investments to more than US$1.2 billion (RM5.42 billion) in southern India’s Karnataka state and add two component factories there, expanding a steady diversification from China to mitigate the risks of US economic and technology sanctions. At least one of the factories that the Taiwanese company plans to construct in Karnataka will produce Apple parts, including for iPhones, people familiar with the matter said. A formal announcement is expected as early as this week, the people said, declining to be named as the matter isn’t public. The second plant will also be in Karnataka, but their exact location has yet to be decided. Foxconn is spending US$500 million on these two complexes on top of a US$700 million facility it aims to build on a 300-acre (121.41-hectare) site close to the airport in Bengaluru, the capital of Karnataka, Bloomberg News previously reported. That plant is likely to assemble iPhones and expected to create about 100,000 jobs. The additional sites will bring the Apple partner’s envisioned new spending for India north of US$1.2 billion, a big outlay for a Taiwanese company that traditionally assembles the vast majority of devices for Apple and other US brands from central and southern China. Foxconn’s moves in India highlight how the South Asian nation has fast become a popular destination for manufacturers scouting for an alternative to China amid growing tensions between Washington and Beijing. It’s also the result of a shift in the global supply chain that accelerated during the Covid-19 pandemic and war in Ukraine, and could reshape the way electronics are made. Apple didn’t reply to a request for comment. Foxconn didn’t respond to an email for comment. The Karnataka state government didn’t respond to a request for comment outside of business hours. Apple supplier Foxconn plans US$500 mil component plants in India BY RISHABH JAISWAL Reuters Apple suppliers such as Foxconn have ramped up business in India over the past few years thanks to Prime Minister Narendra Modi’s incentives to boost local manufacturing. Foxconn and smaller Taiwanese rival Pegatron Corp now both operate iPhone assembly facilities in the southern state of Tamil Nadu. Other states such as Karnataka have also wooed companies with quick decision-making, cutting down on red tape and throwing in subsidies. Separately, a Foxconn subsidiary also signed an initial agreement with the southern Tamil Nadu government to set up its own components plant with an investment of 16 billion rupees (US$195 million or RM877.44 million), the state’s Industries Ministry said on Monday (July 31). The project is likely to generate about 6,000 jobs. Foxconn’s decision suggests suppliers may move capacity out of China far faster than expected and is a coup for Modi’s government, which sees an opportunity to close India’s tech gap with China as Western investors and corporations sour on Beijing’s volatile regulations, slowing economy and US trading restrictions. Foxconn’s sprawling iPhone assembly complex in the Chinese city of Zhengzhou — currently the world’s biggest source of Apple’s marquee gadget — employs some 200,000, though that number surges during the peak production season. Output at the Zhengzhou plant plunged ahead of the end-2022 holidays due to Covid-related disruptions, one of several factors spurring Apple to re-examine its China-reliant supply chain. REUTERS BY SANKALP PHARTIYAL Bloomberg REUTERS

WEDNESDAY AUGUST 2, 2023 22 THEEDGE CEO MORNING BRIEF WORLD NEWS IN BRIEF Indonesia’s new export rule could boost FX supply by US$9 bil per month JAKARTA (Aug 1): New rules requiring Indonesian natural resource exporters to keep some of their proceeds onshore could add up to US$9 billion (RM40.6 billion) per month to the foreign exchange supply and strengthen the rupiah exchange rate, senior officials said on Tuesday (Aug 1). Under a rule that comes into force Aug 1, natural resource exporters must retain 30% of the proceeds of export shipments worth at least US$250,000 in the domestic financial system for three months. The regulation has been criticised by exporters who say it will disturb their cash flow, but financial authorities have defended the measure, which is designed to bolster domestic FX liquidity amid US monetary tightening. Bank Indonesia Governor Perry Warjiyo said the amount of retained FX in the domestic financial system after the rules apply depends on exporters’ compliance. The bank estimates that if 90% of resource exporters follow the rules, by December there would be US$9.2 billion of additional US dollar supply per month. But if only half of them do, the figure would drop to US$5 billion. “We’re optimistic there will be around US$8 billion to US$9 billion per month,” Warjiyo told a news conference. The rules will help strengthen the rupiah exchange rate , Finance Minister Sri Mulyani Indrawati said at the same news conference. The rupiah so far this year has been the best performing emerging Asian currency with a nearly 3% gain against the US dollar, but it remains sensitive to investors’ risk appetite. Sri Mulyani said the rupiah is set to further appreciate due to easing global financial market uncertainties. — Reuters Amazon to invest US$7.2 bil in Israel, launches AWS cloud region (Aug 1): Amazon.com said on Tuesday (Aug 1) it is planning to invest about US$7.2 billion (RM32.4 billion) through 2037 in Israel, and launched its Amazon Web Services (AWS) data centres in the country. Amazon’s cloud services in the region will allow the country’s government to run applications and store data in data centers located in Israel. “The establishment of the Region will enable us to migrate substantial governmental workloads to the cloud, and we are confident that it will help us accelerate digital transformation in the public sector,” said Yali Rothenberg, accountant general of Israel. AWS is Amazon’s cloud computing platform, used by companies such as Netflix, General Electric and Sony , enabling storage, networking and remote security. With the expansion, AWS will be available in 32 geographic regions, the company said, adding that its investment in Israel will contribute about US$13.9 billion to Israel’s gross domestic product. — Reuters Australia holds rates steady, might be done tightening SYDNEY (Aug 1): Australia’s central bank on Tuesday (Aug 1) held interest rates at 4.1% for a second straight month, saying past increases were working to cool demand, but retained a warning that some more tightening might be needed to curb inflation. Wrapping up its August policy meeting, the Reserve Bank of Australia (RBA) largely left its economic outlook unchanged from the previous quarter, forecasting headline inflation would return to within its 2%-3% target range by late 2025, from the current 6%. Markets had leaned toward a steady outcome given recent data showed inflation had eased for a second quarter and consumer spending was softening. However, economists were more split on the outcome, with 20 out of 36 polled by Reuters expecting a hike. The Australian dollar extended earlier declines to be 0.9% lower at US$0.6656, and futures jumped as investors scaled back the probability of a further rise at all, with a move in September seen as a less than a 20% chance. Swaps now implied a risk of around 13 basis points of tightening by year end. — Reuters Read the full story UK house prices fall most since 2009 as borrowing costs rise (Aug 1): Britain’s house price slump deepened after a jump in borrowing costs and the threat of worse to come held back demand from potential buyers, one of the largest mortgage lenders said. Nationwide Building Society said its measure of prices fell 3.8% from a year ago, the most since 2009 and quicker than the 3.5% drop the previous month. Economists had expected a slightly larger decline of 4%. The first hard data about prices for the latest month indicate the 13 interest-rate increases from the Bank of England since the end of 2021 have strained the ability of consumers to pay more for properties. The market is now in its deepest slump since the global financial crisis more than a decade ago. “Housing affordability remains stretched for those looking to buy a home with a mortgage,” Robert Gardner, Nationwide’s chief economist, said in a statement Tuesday (Aug 1). “Nevertheless, a relatively soft landing is still achievable.” So far, prices have avoided the collapse that appeared possible last autumn, when then-Prime Minister Liz Truss’s ill-fated budget sent borrowing costs soaring to 14-year highs. In November, Nationwide had warned of a potential 30% drop in prices in a worst-case scenario. — Bloomberg Read the full story Flights cancelled, thousands told to evacuate as typhoon nears Japan’s Okinawa TOKYO (Aug 1): Flights were cancelled and tens of thousands of people were advised to evacuate their homes on Tuesday (Aug 1) as powerful typhoon Khanun approached Japan’s southern Okinawa island chain, threatening torrential rains and high winds through Thursday. Residents in a wide swathe of the tropical prefecture, a popular tourist destination some 1,600km southwest of Tokyo, were advised to evacuate as the storm, with winds exceeding 200kph, slowly moved northwest. In Okinawa’s capital Naha, the airport was closed and all flights — amounting to about 900 — cancelled, TV Asahi said. At least 20,000 people were also affected by evacuation advisories in the city, officials said. Wind and rain were picking up on Tuesday evening, with the storm expected to escalate by Wednesday. The storm’s path remained unpredictable, with some meteorologists saying it could affect eastern China later this week, while public broadcaster NHK said it could turn east, potentially affecting Japan’s main islands. — Reuters REUTERS

WEDNESDAY AUGUST 2, 2023 23 THEEDGE CEO MORNING BRIEF WORLD (Aug 1): There’s a lot of talk about bringing manufacturing back to the US as new factories spring up across the country. But the old ones aren’t doing so great. A leading measure of US manufacturing activity due Tuesday (Aug 1) is set to show a ninth straight month of contraction for the sector in July, even as factory construction surges in the wake of recent subsidies enacted by Congress and President Joe Biden’s administration. It will be a few years before the new plants can actually turn out things like computer chips and electric-vehicle batteries. For now, firms and forecasters alike are wondering whether the current woes merely reflect a post-pandemic reset, or if they’re signals of a wider economic downturn to come, as they often have been in the past. Take Correct Craft, for example. The Orlando-based manufacturer of ski and fishing boats doesn’t expect to sell as many watercraft over the next 12 months as it did in the past year, when sales hit US$1.1 billion (RM4.97 billion), according to its chief executive officer Bill Yeargin. During the pandemic, dealers couldn’t keep up with demand, Yeargin said in an interview. Nowadays, though, they have too many boats on their lots. “We’re not in a downturn. We’re just trying to find a new normal,” he said. For economists, the legacy of the pandemic continues to confound efforts to forecast the outlook for business conditions. At the height of it, Americans were stuck at home and channelled much of their spending into manufactured goods. Then, as the economy reopened, consumers pivoted toward things like travel, entertainment and restaurant meals. That BY MICHAEL SASSO & ALEX TANZI Bloomberg New factories are coming to the US, even as existing ones struggle But even amid the recent upswing in optimism — with US stock indexes now at their highest levels in more than a year — the current soft patch in manufacturing makes it harder to definitively ring the all-clear for the US economy’s ability to avoid a recession. spending on services has held up so far this year even as manufacturing has weakened. The Federal Reserve has now raised its benchmark interest rate by more than five percentage points over the last 16 months in an effort to cool things off. The central bank’s own economists began forecasting a recession in March, but rescinded their call last month in light of recent resilience in the economic data. “A downturn in the goods sector tends to precede a downturn in the services sector,” even if manufacturing isn’t as important to the US economy as it once was, said Kathy Bostjancic, the chief economist at Nationwide Mutual Insurance Co. But she added that “this time could be different” given excess savings, accumulated during the pandemic, and a stillstrong job market that are enabling consumers to continue spending on services. Higher interest rates are certainly having an impact, according to Giuseppe Riva, who leads Italian woodworking machine manufacturer SCM Group’s North American operations from suburban Atlanta. Big customers continue to buy SCM’s machines — which can run into the hundreds of thousands of dollars — and smaller accounts are still buying the entry-level models that come in under US$50,000, Riva said. The large middle tier of customers, though, is struggling with elevated borrowing costs and delaying equipment purchases. Overall, orders have thus returned to more-normal levels after an “unreasonable and unsustainable” surge during the pandemic, he said. Biggest share Skyrocketing outlays on new manufacturing facilities since the passage of the CHIPS Act and the Inflation Reduction Act in 2022 are further complicating the outlook. In the second quarter, factory construction accounted for the biggest share of overall economic growth in more than 40 years. Earlier this year, dour sentiment among forecasters was widespread. Now, though, a majority of business economists say the odds of a US recession in the next 12 months are 50% or less, according to a new National Association of Business Economics survey. And Biden is counting on it. The president is staking his 2024 reelection campaign on his economic legacy — especially investments in green-energy projects, advanced chips and infrastructure, including upgrading the obsolete Brent Spence Bridge spanning the Ohio River. But even amid the recent upswing in optimism — with US stock indexes now at their highest levels in more than a year — the current soft patch in manufacturing makes it harder to definitively ring the all-clear for the US economy’s ability to avoid a recession. “I think we’re already there,” said Stephen Stout, whose firm Young & Stout manufactures and distributes beef and pork products in West Virginia. High beef costs have hurt Young & Stout’s sales to grocers, forcing it to pursue smaller niches, like private-label products for restaurants, he said. “If the stock market was down, I think you’d be hearing a lot more about it. I don’t think the stock market is a good indicator of overall prosperity.”

WEDNESDAY AUGUST 2, 2023 24 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE/LONDON (Aug 1): Singapore has gone from a mudflat swamp with fishing villages to an island metropolis boasting one of the world’s highest incomes and population densities—in a little more than 150 years. It’s going to have to go through a different kind of transformation in less than 30 years, if it’s to meet its newly set goal of reaching net-zero emissions by 2050. The formula to reach net-zero requires a country to move to carbon-free energy sources and capture any residual emissions that it cannot fully mitigate. But building renewables like solar and wind requires a lot of land, one thing Singapore doesn’t have. That’s why the country has floated the idea of importing renewable energy from other nations (even as far as Australia) through long undersea cables. But the high cost and technical hurdles behind such ideas means they have yet to fully come to fruition. The watchdog Climate Action Tracker currently rates the island country’s climate plan “critically insufficient.” While Singapore’s gameplan has its critics, it’s made progress in several pockets that many small-island countries can learn from. Singapore has deployed and scaled up some of the technologies that will prove crucial for any island country’s survival in the 21st century. Last month, we got to tour a number of them. District cooling Five floors below the luxury shops at Marina Bay Sands, SP Group runs a giant cooler. It provides cooling to dozens of skyscrapers and developments in the vicinity, saving a huge amount of premium space in each building that would otherwise be taken by air conditioning equipment. Crucially, the bigger a cooling network, the more energy efficient it can be. In one test, when SP Group connected an existing building with its own cooling system, its energy use dropped 40%, said Foo Yang Kwang, SP Group’s chief engineer of sustainable energy solutions. The plant can also act like a huge ice battery. During off-peak hours, such as at night, the plant has vast stores of water that can be cooled to near freezing temperatures. Then in the day, it can tamp down electricity consumption by using the freezing waters to supply the cooling network. Singapore’s building technology it needs for a new climate era BY SHERYL TIAN TONG LEE & AKSHAT RATHI Bloomberg But building renewables like solar and wind requires a lot of land, one thing Singapore doesn’t have. That’s why the country has floated the idea of importing renewable energy from other nations (even as far as Australia) through long undersea cables. Offshore solar As solar panels have become cheaper, they are finding use in all sorts of places. One promising application is to put them on top of bodies of water, which brings multiple advantages. Covering a reservoir reduces evaporation, while sitting atop water keeps panels cool and increases how much energy they can produce. Singapore is also building floating solar on lakes and even its coast line. While an offshore solar farm could experience waves large enough to cause panels to break, that did not stop EDP Renewables APAC from investing in the idea. The company owns a five-hectare floating solar farm in Johor Strait on the northern shore of Singapore where water disturbance is manageable. Built during the pandemic, the five-megawatt peak solar plant makes use of plastic pontoons filled with air to hold the solar panels in place. However, the system is flexible enough that waves up to two metres simply pass through. The plant, which cost more than S$7.5 million (RM25.2 million), is more expensive than what could be built on land elsewhere, but in Singapore there’s just not enough land to spare. Water desalination Singapore used to get most of its water from Malaysia, but that dependency is now down to only about half of its needed supply. The rest is made up using rainwater, recycling waste water, and making seawater drinkable. That last solution is hugely energy intensive, taking up 3.5 kilowatt hour (kWh) of electricity for every 1,000 litres or about three times as much as would be needed to purify rainwater. “With climate change, heat and water stresses are very real” especially for a tropical island, said Melissa Low, a research fellow at the National University of Singapore’s Center for Nature-based Climate Solutions. “Some energy-intensive technologies, like desalination, are crucial for Singapore, so we have to make them more energy efficient.” Public Utilities Board (PUB), which is responsible for Singapore’s water management, has a goal of reducing the energy use of water desalination to two kWh per 1,000 litres by 2025. That’s going to require using technologies still in their infancy. In a positive sign for feasibility, PUB said it has run a pilot plant that cuts energy-use of desalination down to 1.65 kWh, which is less than half the average of current technology. “As a small, low-lying island, Singapore has its own unique circumstances and its decarbonisation trajectory has to be different from other countries,” Low said. “Climate change is an existential issue for Singapore so we’re looking into as many solutions as we can.” Read also: Climate change is raising the threat level on rain Cash-strapped Egypt swelters as power outages pile on the pain Bali has a US$40 mil trash problem BLOOMBERG

WEDNESDAY AUGUST 2, 2023 25 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) SAPURA ENERGY BHD 506.6 0.01 0.040 14.290 639.20 KGW GROUP BHD 180.9 0.02 0.230 N/A 111.00 HONG SENG CONSOLIDATED BHD 164.5 -0.01 0.055 -75.000 281.00 KNM GROUP BHD 144.7 0.00 0.095 90.000 384.20 AT SYSTEMATIZATION BHD 131 0.01 0.015 0.000 101.80 PESONA METRO HOLDINGS BHD 72 0.00 0.175 -23.910 121.60 KOMARKCORP BHD 67 -0.01 0.040 -27.270 46.20 UEM SUNRISE BHD 64.1 -0.02 0.460 80.390 2326.90 REACH ENERGY BHD 62.3 0.00 0.035 -22.220 74.50 WIDAD GROUP BHD 49.2 0.01 0.425 -1.160 1291.40 SARAWAK CONSOLIDATED 41 0.01 0.440 203.450 281.70 UCREST BHD 35 0.02 0.160 28.000 118.70 VELESTO ENERGY BHD 35 0.00 0.230 53.330 1889.60 TOP BUILDERS CAPITAL BHD 31.2 -0.01 0.010 0.000 7.10 RGB INTERNATIONAL BHD 30.3 0.01 0.360 100.000 554.70 TANCO HOLDINGS BHD 24.3 -0.01 0.545 62.690 1052.70 ALAM MARITIM RESOURCES BHD 23.8 0.00 0.030 20.000 46.00 MALAYSIAN RESOURCES CORP 23.5 -0.01 0.370 25.420 1653.00 TWL HOLDINGS BHD 23.4 0.00 0.035 0.000 147.40 BORNEO OIL BHD 23.3 0.00 0.015 -40.000 179.60 Data as compiled on Aug 1, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) AE MULTI HOLDINGS BHD 0.015 50.00 230.000 -40.00 32.50 AT SYSTEMATIZATION BHD 0.015 50.00 130881.50 0.00 101.8 COMPUGATES HOLDINGS BHD 0.015 50.00 1278.200 50.00 82.5 JOE HOLDING BHD 0.015 50.00 1661 -25 45.9 MMAG HOLDINGS BHD 0.015 50.00 105.400 -40 36.3 DOLPHIN INTERNATIONAL BHD 0.020 33.33 50.400 -20.00 26.8 MLABS SYSTEMS BHD 0.020 33.33 421.000 0.00 29.0 XIDELANG HOLDINGS LTD 0.020 33.33 910.000 -20.00 42.3 G3 GLOBAL BHD 0.025 25.00 66.500 -16.67 94.3 PUC BHD 0.035 16.67 60.200 0.00 63.7 ZELAN BHD 0.035 16.67 11.100 -50.00 29.6 HUA YANG BHD 0.335 15.52 9065.700 97.06 147.4 FITTERS DIVERSIFIED BHD 0.040 14.29 829.200 -42.86 93.7 SAPURA ENERGY BHD 0.04 14.29 506553.900 14.29 639.2 UCREST BHD 0.16 14.29 34982.300 28.00 118.7 TA WIN HOLDINGS BHD 0.045 12.50 846.300 -18.18 154.6 WAJA KONSORTIUM BHD 0.09 12.50 1106 0 97.7 VIZIONE HOLDINGS BHD 0.050 11.11 2966.600 -9.09 102.3 MINETECH RESOURCES BHD 0.050 11.11 938.900 -9.09 76.3 VSOLAR GROUP BHD 0.265 10.42 9333.4 -11.67 42.7 Data as compiled on Aug 1, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) TOP BUILDERS CAPITAL BHD 0.010 -50.00 31,192.1 0.00 7.1 GREEN OCEAN CORP BHD 0.010 -33.33 771 -50.00 21.1 TALAM TRANSFORM BHD 0.010 -33.33 603.6 -33.33 43 ZEN TECH INTERNATIONAL BHD 0.015 -25.00 1,583.0 -25.00 39.4 MQ TECHNOLOGY BHD 0.025 -16.67 644.8 -50.00 34.5 SMTRACK BHD 0.025 -16.67 3737.1 -50.00 29.8 HONG SENG CONSOLIDATED BHD 0.055 -15.38 164,467.9 -75.00 281.0 NETX HOLDINGS BHD 0.065 -13.33 2,595.1 8.33 59.8 KANGER INTERNATIONAL BHD 0.035 -12.50 1,482.6 -12.50 22.7 BSL CORP BHD 0.035 -12.50 1,571.6 -48.22 67.6 GREEN PACKET BHD 0.035 -12.50 3,553.3 -36.36 69.8 EDUSPEC HOLDINGS BHD 0.035 -12.50 13,028.7 -65.00 37.3 KOMARKCORP BHD 0.040 -11.11 67,296.5 -27.27 46.2 EDELTEQ HOLDINGS BHD 0.545 -9.92 20,948.7 0.00 290.2 QUALITY CONCRETE HOLDINGS 1.030 -9.65 16.1 -21.97 59.7 REX INDUSTRY BHD 0.100 -9.09 63.3 -28.57 65.8 SINARAN ADVANCE GROUP BHD 0.050 -9.09 391.2 -33.33 45.7 AVILLION BHD 0.055 -8.33 13,268.5 -31.25 62.3 OSK VENTURES INTERNATIONAL 0.450 -8.16 4.1 -13.46 88.4 ECONPILE HOLDINGS BHD 0.225 -8.16 21,395.9 32.35 318.9 Data as compiled on Aug 1, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 132.900 -1.000 15.0 -5.07 31,165.1 MALAYSIAN PACIFIC INDUSTRIES 29.000 -0.280 76.0 0.83 5,768.0 PETRONAS DAGANGAN BHD 22.740 -0.220 103.0 -0.47 22,591.1 BATU KAWAN BHD 21.140 -0.140 16.7 -5.20 8,316.1 AJINOMOTO MALAYSIA BHD 16.480 -0.140 31.2 25.99 1,002.0 SAM ENGINEERING & EQUIPMENT 4.880 -0.120 17.8 -1.01 2,643.0 QUALITY CONCRETE HOLDINGS 1.030 -0.110 16.1 -21.97 59.7 KESM INDUSTRIES BHD 7.300 -0.100 3.9 3.99 314.0 PETRONAS CHEMICALS GROUP BHD 6.850 -0.100 3,901.6 -20.35 54,800.0 GENTING PLANTATIONS BHD 6.020 -0.090 0.6 -3.57 5,401.1 IMASPRO CORP BHD 4.850 -0.090 346.4 -17.09 388.0 HENGYUAN REFINING CO BHD 3.380 -0.090 593.2 -3.98 1,014.0 HEXTARTECHNOLOGIES SOLUTIONS 26.320 -0.080 5.1 54.28 3,386.0 HONG LEONG BANK BHD 19.500 -0.080 430.3 -5.16 42,270.5 CHIN TECK PLANTATIONS BHD 7.850 -0.080 9.5 -8.07 717.2 GENTING BHD 4.230 -0.080 3,256.2 -5.58 16,287.9 AURELIUS TECHNOLOGIES BHD 2.520 -0.080 1,174.9 37.70 992.9 KOBAY TECHNOLOGY BHD 1.950 -0.060 607.3 -28.31 632.2 HAP SENG CONSOLIDATED BHD 3.340 -0.060 1,627.1 -47.81 8,315.5 UWC BHD 3.300 -0.060 718.4 -17.91 3,635.5 Data as compiled on Aug 1, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) DUTCH LADY MILK INDUSTRIES 21.500 0.180 32.2 -28.90 1,376.0 DKSH HOLDINGS MALAYSIA BHD 5.030 0.110 58.00 16.93 793.0 BURSA MALAYSIA BHD 6.820 0.110 2,388.3 2.56 5,519.4 PERTAMA DIGITAL BHD 2.990 0.100 4,128.6 69.89 1,310.3 CENTRAL GLOBAL BHD 1.97 0.080 1555.5 117.68 308.3 ALLIANZ MALAYSIA BHD 14.660 0.080 9.5 3.53 2,609.0 KLUANG RUBBER CO MALAYA BHD 3.890 0.070 2.0 -1.77 241.8 BRITISH AMERICAN TOBACCO 10.180 0.060 173.5 -9.27 2,906.7 IGB BHD 2.170 0.060 23.1 40.30 2,927.9 PENTAMASTER CORP BHD 5.300 0.060 1,603.8 19.64 3,770.0 FAVELLE FAVCO BHD 1.850 0.060 2,429.0 7.56 432.6 HARTALEGA HOLDINGS BHD 2.260 0.060 6,011.1 32.94 7,723.5 FRASER & NEAVE HOLDINGS BHD 25.060 0.060 42.2 16.13 9,191.5 APOLLO FOOD HOLDINGS BHD 4.330 0.050 183.8 12.18 346.4 EWEIN BHD 1.330 0.050 6,774.0 285.51 401.1 METROD HOLDINGS BHD 1.290 0.050 1.0 5.74 154.8 INFOMINA BHD 1.780 0.050 1,577.7 23.61 1,070.2 HUA YANG BHD 0.335 0.045 9,065.7 97.06 147.4 PETRONAS GAS BHD 17.120 0.040 238.4 0.00 33,875.9 APB RESOURCES BHD 2.500 0.040 342.2 66.67 277.2 Data as compiled on Aug 1, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 35,559.53 100.24 0.28 S&P 500 * 4,588.96 6.73 0.15 NASDAQ 100 * 15,757.00 6.07 0.04 FTSE 100 * 7,699.41 -34.13 -0.44 AUSTRALIA 7,450.71 40.29 0.54 CHINA 3,290.95 -0.09 0.00 HONG KONG 20,011.12 -67.82 -0.34 INDIA 66,460.31 -67.36 -0.10 INDONESIA 6,886.50 -44.86 -0.65 JAPAN 33,476.58 304.36 0.92 KOREA 2,667.07 34.49 1.31 PHILIPPINES 6,593.80 2.33 0.04 SINGAPORE 3,373.79 -0.19 -0.01 TAIWAN 17,212.87 67.44 0.39 THAILAND 1,556.06 12.79 0.83 VIETNAM 1,217.56 -5.34 -0.44 Data as compiled on Aug 1, 2023 * Based on the previous days’ closing Source: Bloomberg CPO RM 3,866.00-12.00 OIL US$ 85.03-0.40 RM/USD 4.5180 RM/SGD 3.3879 RM/AUD 2.9977 RM/GBP 5.7924 RM/EUR 4.9570