the edge 190923

CEOMorningBrief TUESDAY, SEPTEMBER 19, 2023 ISSUE 638/2023 theedgemalaysia.com OIL EDGES CLOSER TO US$95 A BARREL AS GLOBAL MARKET TIGHTENS UP p18 HOME: Malaysia-Singapore in discussion on RE exports, Cabinet paper on energy exchange due October — Nik Nazmi p5 China govt-linked unit commits RM15 bil investment for waste-to-energy partnership with Citaglobal p10 WORLD: Yellen says premature to judge auto strike impact, wants win-win deal p17 Singtel to sell 20% stake in regional data centre business valued at S$5.5 bil p19 JPMorgan sees India share sale boom reaching US$30 bil in 2024 p20 LOW YEN YEING/THE EDGE BPLANT STAKE SALE ADDRESSES BOUSTEAD’S SHORT-TERM LIQUIDITY ISSUES; talks with MOF ongoing on long-term solution for LTAT – Mohamad Hasan Report on Page 2. Report on Page 4. Employers need MyEG rep at immigration to resolve visa renewal issue — home ministry

TUESDAY SEPTEMBER 19, 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] BPlant stake sale addresses Boustead’s shortterm liquidity issues; talks with MOF ongoing on long-term solution for LTAT — Mohamad Hasan Putrajaya reviewing windfall tax on palm oil industry — Fadillah KUALA LUMPUR (Sept 18): Lembaga Tabung Angkatan Tentara’s (LTAT) move to offload a 33% stake in Boustead Plantations Bhd (BPlant) to Kuala Lumpur Kepong Bhd (KLK) was necessary to avoid Boustead Holdings Bhd from going bankrupt, said Defence Minister Datuk Seri Mohamad Hasan. Mohamad said the stake disposal for RM1.15 billion is to address Boustead’s cash flow issues and debt settlement of RM800 million by end-2023. “The disposal is crucial to prevent Boustead from falling into bankruptcy if the debt is not settled in time,” he said in the Dewan Rakyat on Monday, in response to arguments raised by Opposition MPs regarding the stake sale during the 12th Malaysia Plan (12MP) Mid-Term Review debate session last week. The deal — which is set to see KLK stake in BPlant’s rise from nil to 33% and subsequently to 65% via a mandatory general offer to be triggered — faced backlash from a number of Opposition MPs, who claimed that this would damage Malaysia’s aim of achieving 12MP’s Bumiputera corporate equity target of 30% by 2025. The transaction will see LTAT keeping a 35% stake in BPlant, from 68%. Boustead and LTAT are also given the first right of refusal to keep two parcels of BPlant land in Semenyih, Selangor and Batu Kawan, Penang, which could be developed kin the future. Mohamad said a total of 15 companies involved in the plantation sector — including Sime Darby Plantations Bhd, Tabung Haji, Tradewinds Corp, and FGV Holdings Bhd — were invitKUALA LUMPUR (Sept 18): Malaysia is reviewing an existing windfall tax on the palm industry and hopes to complete it next year, Plantations and Commodities Minister Datuk Seri Fadillah Yusof said on Monday. Planters in Malaysia, the world’s second largest producer of palm oil, have for years asked the government to reassess the tax rate and the threshold for the windfall profit tax. HOME BY IZZUL IKRAM theedgemalaysia.com BY ROZANNA LATIFF Reuters ed to the two- to three-month bidding period for the BPlant stake, but most of the companies declined to participate or made too low of an offer. “Tradewinds’ offer, for instance, was too low. Boustead as a company opted for the higher bid [from KLK] because they need RM800 million by year-end, and another RM1.7 billion to redeem their Islamic Medium-Term Notes,” he added. However, the minister noted that Boustead’s deal with KLK has yet to reach the stage where it requires his approval, adding that he is also in dialogue with the Ministry of Finance (MOF) to address Boustead’s other debt obligations. Touching on BPlant’s viewpoint, Mohamad underlined that the plantation company also requires stronger financial resources to fund its replanting efforts, as close to 49% of its planted area is over 20-years-old. “Due to this, BPlant’s plantations recorded the lowest fresh fruit bunch production in the plantation industry with 13.3 tonnes per hectare, versus an average of 20 tonnes per hectare. “BPlant’s profits in the past few years have been driven by the sale of land as well as elevated crude palm oil prices,” he said. Talks with MOF to resolve LTAT’s cash flow issues Mohamad said if the BPlant stake disposal was not undertaken and Boustead fell into bankruptcy, LTAT would be the one to face issues, as 50% of the armed forces retirement fund’s assets are in Boustead. Having 50% of its assets in one basket is not a good thing for LTAT as a retirement fund, the minister said, stressing that at least 15% should be in liquid assets. “However, LTAT’s liquid assets stand at less than 20% currently. If anything happens, LTAT will face a problem. “So, we want to unlock the value of the assets. Let Boustead proceed first, and then we will come in to consider if it is the best way to do it,” he added Beyond this, Mohamad said he is also in talks with the MOF to formulate how LTAT’s cash flow can be improved to enable dividend payment to its members. Shares in KLK closed RM1.84 or 7.89% lower at RM21.48, giving the group a market capitalisation of RM23.22 billion. BPlant’s shares ended unchanged at RM1.46, valuing the company at RM3.27 billion. Malaysia currently imposes a windfall levy of 3% on palm oil prices above RM3,000 per tonne in Peninsular Malaysia and above RM3,500 per tonne in Sabah and Sarawak — the largest palm oil producing states in the country. Fadillah, who was responding to a parliamentary question on taxes “burdening” the industry, did not provide details of the review. The matter would be discussed with the Ministry of Finance, he said.

tuesday september 19, 2023 3 The E dge C E O m o rning brief

tuesday september 19, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 18): The Ministry of Defence (Mindef) has implemented a set of “checkpoints” outlined in the sixth supplemental agreement with Boustead Naval Shipyard Sdn Bhd (BNS), the contractor for the navy’s troubled littoral combat ship (LCS) project, which must be met to prevent project termination, according to Defence Minister Datuk Seri Mohamad Hasan. In his winding-up speech during the 12th Malaysia Plan Mid-Term Review, Mohamad Hasan highlighted that the set of “checkpoints” had been established to assess the progress and outcomes of the navy’s troubled LCS project. With a strong emphasis on meeting the agreed-upon timeline as stated in the contract, he highlighted that the government’s current priority is to ensure the timely completion of the LCS project, with construction work slated to resume within this month. “The government will continue to closely monitor the development of the LCS project through the Project Monitoring Mindef implements critical ‘checkpoints’ to evaluate progress of LCS project — defence minister KUALA LUMPUR (Sept 18): Deputy Minister of Home Affairs Datuk Shamsul Anuar Nasarah, has confirmed that MyEG Services Bhd has fully shut down its foreign worker permit renewal services portal on Sept 15 (Friday), amid the uncertainties surrounding the extension of the e-service provider’s contract by the government. Any employer whose applications are “stranded” on the MyEG online portal will have to visit the Immigration department along with MyEG representatives, Shamsul (BN-Lenggong) told the Dewan Rakyat. He also mentioned that efforts to enhance the methodology for foreign worker permit renewal services online are still under consideration by the Ministry of Home Affairs. “Any application that is stuck at MyEG, employers can come with MyEG to the Immigration Department to resolve the related issues,” Shamsul said. The deputy minister however did not elaborate on the status of MyEG’s contract, and the reason why the services portal by MyEG remained open to access in the last few months. MyEG’s three-year concession for immigration-related services was scheduled to end on May 22 this year, following an extension from May 2020. In July, MyEG said it had received a notification letter dated July 4 from the Ministry of Home Affairs to confirm that the Ministry of Finance has agreed to an extension for the concession. At the time, MyEG said the terms of the extension “will be finalised pursuant to further discussion with the government in due course”. An agreement to formalise the extension “will be signed at a later stage”, it said then. Shamsul was responding to a question Employers need MyEG rep at immigration to resolve visa renewal issue — home ministry by Choy Nyen Yiau theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com posed by Kota Melaka Member of Parliament Khoo Poay Tiong (PH-DAP), who inquired about the rationale behind the Immigration department’s engagement with a third party, especially when other authorities possess the capability to develop their own systems. MyEG came under scrutiny last week after Khoo alleged that the company continued to accept payments for its permit renewal services from employers, despite the government suspending its services as early as February. Khoo claimed that MyEG unlawfully collected fees for foreign worker permit renewals and called for the immediate return of funds to the misled employers of foreign workers. When employers asked for refunds due to delays, MyEG asked for proof that the customers had paid to and renewed their permits with the Immigration Department, Khoo said. In return, MyEG has come out to say that there was no misrepresentation regarding the services offered on its online platform. It emphasised that it is company policy to refund its customers upon request, should its services be unsuccessfully rendered. Shares of MyEG closed up three sen or 3.85% at 81 sen on Monday, giving it a market capitalisation of RM6.06 billion. Read also: MyEG teams up with Chinese state-owned firm to spearhead identity credentials service on Zetrix Deputy Minister of Home Affairs Datuk Shamsul Anuar Nasarah has confirmed that MyEG Services Bhd has fully shut down its foreign worker permit renewal services portal on Sept 15. bernama Committee (PMC), jointly chaired by the Treasury Secretary-General and the Defence Ministry Secretary-General,” he said. In response to a question from the Member of Parliament for Tanah Merah Datuk Seri Ikmal Hisham Abdul Aziz (PN-Bersatu), Mohamad Hassan revealed that the progress of the detailed design project is at 94% as of now. “The remaining 6% of detailed design that is incomplete only involves the design above the water surface, which is in non-critical areas. The design related to the areas below the water surface has been completed,” said Mohamad Hassan. The LCS project, considered the largest defence procurement in Malaysia’s history with a total cost of RM9 billion, came under intense scrutiny last year after the Public Accounts Committee (PAC) revealed that none of the six ships had been completed despite the government having paid RM6.08 billion. Earlier in May, Mohamad Hasan announced that the finance ministry had established a special-purpose vehicle (SPV) to acquire BNS to complete the delayed LCS project on a reduced scale. Following this, BNSSB signed a sixth supplementary contract with the government. The total cost of the navy’s troubled LCS project has been revised to RM11.2 billion, up from the previous RM9 billion.

tuesday september 19, 2023 5 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 18): The Malaysian government had undertaken detailed discussions with Singapore regulators on issues relating to electricity exports to the city-state, said Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad. The discussions involving the ministry also included the Energy Commission and its Singaporean counterpart Energy Market Authority, as well as industry players, Nik Nazmi said. A paper on energy exchange will be tabled to the Cabinet in October, he said in the Dewan Rakyat. “The discussion continues,” Nik Nazmi said. “Even at prime minister level, and between myself and my counterpart [in Singapore,” he said. Nik Nazmi (PH-Setiawangsa) was responding to questions on the status of the mechanism to allow local players to export renewable energy (RE) to Singapore. Singapore’s EMA is seeking to appoint licensed electricity importers, with an end2023 deadline for its request for proposal. The country’s administration has also initiated pilots with Indonesia and Laos to import low-carbon electricity from the neighbours. Malaysia has lifted an electricity export ban to Singapore this year, but has yet to finalise the framework on the export. In East Malaysia, Sarawak has expressed interest to export its hydro-power generation to Singapore, including via direct transmission using undersea cable. “We will ensure that the mechanism will capture the opportunities there [in Singapore], ensure the growth of the local RE industry, and provide the benefits [of] RE generation to our country,” said Nik Nazmi, when responding on questions about Singapore’s RFP deadline and whether a government-to-government (G2G) agreement is in the planning. The fear is that “costs to upgrade the grid to facilitate RE fell to normal consumers” in the form of higher tariffs, which is especially impactful to lower income groups where RE is not a priority. “If companies like Amazon, Google need RE, they have to pay more to invest into the grid,” Nik Nazmi said, citing examples of carbon-conscious multinational companies. Mini hydro roll-out dragged by conflicts with state governments On the progress of RE capacity generation, Nik Nazmi pointed to efforts to expand beyond solar, including through biomass — currently mostly off-grid — and mini hydro, especially in Peninsular Malaysia. “There is good potential with mini hydro,” Nik Nazmi said. “However sometimes a lot of conflicts arise with the state governments [in the forms of] charges imposed by them and so on. We will study on how to encourage mini hydro,” he added. Nik Nazmi also touched on the scheduled retirement of coal plants in the country. The government is looking at launching an RFP for early retirement of coal plants, and also “mothballing” — namely allowing coal plants to operate at a minimum scale to allow for increased capacity utilisation when energy is needed, such as being practised in Germany and China. MalaysiaSingapore in discussion on RE exports, Cabinet paper on energy exchange due October — Nik Nazmi KUALA LUMPUR (Sept 18): An individual who has been granted a discharge by the court may still be charged again, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. During her winding-up speech on the 12th Malaysia Plan’s Mid-Term Review in the Dewan Rakyat on Monday, Azalina also stated that Article 145 of the Federal Constitution gives the attorney general (AG) the discretion to decide whether to bring the accused to court or halt criminal proceedings. “Did the Members of Parliament here know that, aside from the Yang di-Pertuan Agong, the AG is the only one who can exercise this discretion, which cannot be questioned? This is clearly stipulated in the Federal Constitution. “The court can grant a DNAA (discharge not amounting to acquittal); there is no problem with that. However, the AG can charge anyone, as the discretion lies in the hands of the AG. This means that the AG can even charge ministers, the Speaker, or even members of the Opposition,” Azalina added. She was answering a question by Larut MP Datuk Seri Hamzah Zainudin about discharges granted to certain individuals. While Hamzah did not name the individuals, earlier this month, Bagan Datuk MP Datuk Seri Dr Ahmad Zahid Hamidi was granted a DNAA by the High Court after the prosecution decided to discontinue proceedings related to all the criminal breach of trust, graft, and money laundering charges against him in the Yayasan Akalbudi trial. Prime Minister Datuk Seri Anwar Ibrahim has repeatedly stated that he did not issue any instructions to former AG Tan Sri Idrus Harun and did not interfere in the decision to free Zahid from his 47 corruption charges. Discharged persons may still be charged in court again, says Azalina by Choy Nyen Yiau theedgemalaysia.com by Adam Aziz theedgemalaysia.com Newly appointed AG Datuk Ahmad Terrirudin Mohd Salleh also mentioned that the decision to apply for a DNAA for Zahid in the trial was to ensure there was no miscarriage of justice. However, several Opposition MPs have criticised the government over Zahid’s DNAA, alleging interference in the prosecution. Several groups, including Perikatan Nasional, organised a “Save Malaysia” rally on Saturday to call for Zahid to be charged again. Govt committed to splitting AG’s dual roles Meanwhile, in response to a question raised by Opposition leader Hamzah regarding selective prosecution, Azalina stated that she acknowledges the AG’s powers are too centralised and explained this is why the current government is committed to separating the roles and powers between the AG and the public prosecutor (PP). Read the full story Read also: PM to answer questions about Zahid’s DNAA on Tuesday

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tuesday september 19, 2023 7 The E dge C E O m o rning brief home MELAKA (Sept 18): The lack of a formal agreement between the state government and commercial airline companies has led them to unilaterally terminate their services at the Melaka International Airport (LTAM), Batu Berendam here. State Public Works, Infrastructure, Public Amenities, and Transport Committee chairman Datuk Hameed Mytheen Kunju Basheer said it had indirectly led to LTAM’s operational failure. “There was no formal agreement mandating these airline companies to land at LTAM before. Instead, they would base their operations on passenger numbers, and if they suffer losses, they would terminate their services immediately. “To avoid recurring issues, currently I am drafting a memorandum of understanding (MOU) in which one of the contents is to establish a contract for the period of operation, whether it’s for one to three years, and they can no longer terminate their services arbitrarily as before,” he said. He was speaking to reporters after attending the Melaka International Air Carnival 2023 coordination meeting chaired by State Tourism, Heritage, Arts and Culture Committee chairman Datuk Abdul Razak Abdul Rahman here on Monday. Hameed Mytheen said seven commercial airlines, including some from Indonesia and Singapore, had been invited to operate at LTAM. “While the MOU is currently under discussion at the state executive council (exco) meeting level, our goal is to ensure it transforms into a formal agreement,” he added. The media previously reported that LTAM had discontinued its commercial flight operations last month. The final flights were to Penang in June, and from Pekan Baru, Indonesia on Aug 16. Airlines ended Melaka International Airport operations due to lack of formal agreement — exco J AKARTA (Sept 18): The arrival of Indonesian tourists to Malaysia is expected to increase to 2.68 million this year from 1.48 million last year, driven by the increased air and sea accessibility between the two countries. Malaysian ambassador to Indonesia, Datuk Syed Md Hasrin Tengku Hussin, stated that there are currently 550 flights operating each week by companies such as Malaysia Airlines, AirAsia, Firefly, Batik Air, and Transnusa Airlines. Speaking at the “Sarawak Business Networking Session Roadshow to Indonesia” on Monday, he mentioned that several new routes have been set up this year, including those from Balikpapan and Kertajati to Kuala Lumpur, as well as from Jakarta to Kuching, Sarawak. “Furthermore, access by sea from Medan, Pekanbaru, Batam, and Nunukan to Malaysia, as well as the overland route from Pontianak to Kuching, Sarawak, continues to increase,” he said. The roadshow, organised by the Sarawak Tourism Board (STB) in Jakarta, will be followed by Balikpapan and Banjarmasin as efforts to promote Sarawak to the Indonesian community, in collaboration with the Malaysia Healthcare Travel Council (MHTC), Tourism Malaysia Jakarta, and the Association of Indonesian Tours and Travel Agencies. Earlier, Syed Md Hasrin stated that a total of 1,037,450 Malaysian tourists visited Indonesia in 2022. “I am confident that by maintaining good relations and enhancing bilateral cooperation, particularly in terms of accessibility, the tourism industries of both countries can continue to thrive in the future,” he said. Meanwhile, acting chief executive officer of STB, Yusfida Khalid, mentioned that Sarawak recorded over 200,000 arrivals of Indonesian tourists from all entry points from January to June this year, compared to 46,000 tourists during the same period last year. The organisation of next month’s Sarawak International Dragon Boat Regatta, as well as the Sarawak Regatta in November, is expected to attract more Indonesian tourists to Sarawak, she said at the event, which was also attended by the director of Tourism Malaysia Jakarta, Junus Suhid. Arrival of Indonesian tourists to Malaysia expected to increase — ambassador Land acquisition 93% completed for ECRL Bernama Bernama by Nurhafizah Tan Bernama BEIJING (Sept 18): The land acquisition process for the 665km East Coast Rail Link (ECRL) project is now 93% completed, said China Harbour Engineering Company Ltd (CHEC) Railway Business Unit general manager Zhang Wenfeng. He said the 7% uncompleted part involves Section C of the rail alignment, which is in Selangor. “The 7% is not a big amount. However, if there is a delay [in land acquisition], it will affect the completion time. Otherwise, the project can be completed on time,” he told Malaysian reporters in a special interview recently. CHEC is a subsidiary of China Communications Construction Company Ltd, the main contractor of the ECRL project. Zhang said the construction of the project had achieved 50.29% progress until the middle of last month, and is on track to be completed by the end of 2027. “The project is divided into three sections — A, B and C. We have finished most of the civil work in Sections A and B. Roughly, this project is half-finished,” he added. Read the full story Read also: Putrajaya gives nod to ECRL integrated land use master plan mrl.com.my

tuesday september 19, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 18): There is currently no pressing need to utilise the government’s rice stockpile, which amounts to 250,000 tonnes, according to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu. Mohamad stated that Malaysia currently has a total of 900,000 tonnes in rice stockpile, including the 250,000 tonnes owned by the government, with the remaining 650,000 tonnes made up by commercial stock. “The ministry believes that the rice stockpile remains sufficient and can sustain the country for four to five months, and thus, there is no immediate requirement for emergency utilisation of the government’s stockpile,” he said during his winding-up speech on 12th Malaysia Plan mid-term review in Dewan Raykat on Monday. He emphasised that the ministry is taking the issue of rice supply shortages seriously and attributed this problem to panic buying triggered by a sudden increase in the price of imported rice. However, he reassured the public that the ministry has already intervened to address the rice supply shortage issue. Measures taken include limiting retail purchases and instructing millers to increase local white rice production by approximately 20% for the domestic market through the Local White Rice Special Programme. Minister: No urgency to tap into govt’s 250,000-tonne rice stockpile IPOH (Sept 18): The time is not right to reintroduce the goods and services tax (GST) as the global economy is still slow, Deputy Finance Minister II Steven Sim Chee Keong said. He said the government needs to look at the GST’s implementation holistically, and not only suggestions from certain parties. “These parties have their reasons for the GST’s reintroduction. For example, traders might say they can claim back, but we need to look at the situation holistically, and not just [hearing] from one or two parties. “I am not saying whether the GST is good or bad, but this is not an appropriate time [to implement the GST], especially since we are facing a slow global economy and increases in prices of goods,” he said after a dialogue session held in conjunction with the Perak state-level Budget 2024 roadshow here on Monday. The media previously quoted Deputy Finance Minister I Datuk Seri Ahmad Maslan as stating that several parties favour the GST, including the Federation of Malaysian Manufacturers, Malay Chamber of Commerce Malaysia, traders and economic analysts. Ahmad, via a post on his Facebook Sim: Not the right time to reintroduce GST as global economy is slow Bernama by Choy Nyen Yiau theedgemalaysia.com page, said that previously, he faced strong opposition to the GST, but now many parties have assisted in explaining the tax. Sim said the government has other avenues to increase the country’s revenue apart from reimplementing the GST. “We have other ways, [such as] better fiscal management, [a better] taxation system, and government procurement. “We have all these methods, including targeted subsidies. So, with all these methods, we can manage our fiscal needs without resorting to the GST for now,” he said. Meanwhile, Perak Menteri Besar Datuk Seri Saarani Mohamad said prior to the Budget 2024 roadshow, the state government had sent a list of nine high-impact projects that had been identified with financial implications totalling RM138.67 billion to the Ministry of Finance. He said these projects would be the state government’s main focus, as they would be the main pillars of the state’s development plan, Perak Sejahtera 2030. “The state government has listed the health sector in the state’s priority list to the federal government for the upcoming Budget 2024, with applications for RM1.47 million in project funding,” he said. Mohamad also mentioned that the ministry took note of a suggestion to open 30% of Padiberas Nasional Bhd’s (Bernas) rice monopoly to other industry players next year. “The Bernas monopoly concession has been extended for another 10 years, as agreed upon by the previous administration. “Consequently, the government is obligated by the concession terms, and any changes stipulated in the concession require discussions between Bernas, the Prime Minister, and the Minister of Economy,” he said. Domestic Trade Ministry to launch Rahmah sales for rice Meanwhile, Deputy Minister of Domestic Trade and Consumer Affairs Fuziah Salleh, during her winding up speech, announced that the ministry will launch the Rahmah sales for rice, to address the rice supply shortage. She acknowledged public concerns regarding rice supply, though she clarified that the regulation of paddy and rice falls under the Ministry of Agriculture and Food Security. “The ministry does not have the authority to control rice prices, but we are exploring ways within our jurisdiction to assist the people. Therefore, we will introduce the Rahmah sales for rice, allowing the public to purchase rice at an affordable price subsidised by the government. Details of the mechanism will be announced later,” she said. Malaysia is currently facing a disruption in locally produced rice supply, leading to the government’s imposition of a 100kg limit on purchases of locally produced white rice. Meanwhile, the country’s sole rice importer, Bernas, has raised the imported price of rice to RM3,200 per tonne, up from RM2,350 per tonne. This increase is attributed to factors such as a weakening currency exchange rate, high operating costs, and the impact of the white rice export ban announced by India beginning in July. Zahid Izzani/The Edge

tuesday september 19, 2023 9 The E dge C E O m o rning brief

tuesday september 19, 2023 10 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 18): Malaysia Building Society Bhd (MBSB) has proposed to undertake a members’ scheme of arrangement which entails the disposal of its non-financial subsidiaries and non-performing conventional loans. In a filing, MBSB said five of its companies in the property development business will be transferred to a corporate share trustee, while disposal of the loans — carrying a book value of RM279 million — shall be settled in cash and on a deferred basis. The five companies had combined negative net liabilities of RM1.105 billion as at end-2022, the filing showed. The scheme, MBSB said, will allow it to be a pure investment holding company with no loans and no direct interest in companies which are not involved in financial services. The decision follows a scheme of arrangement entered by MBSB back in 2018, in relation with its acquisition of Asian Finance Bank (now MBSB Bank Bhd) completed that year. Under the scheme, MBSB had obtained a vesting order to identify residual conventional financial assets and liabilities (which cannot be converted to Shariah-compliant assets and liabilities) and non-financial subsidiaries, and dispose of them to third parties. A July 2021 deadline for the vesting order had previously been extended to April 2024. In its filing, MBSB said it will transfer its shareholding in its wholly-owned special-purpose vehicle (SPV) Emerald Unity Sdn Bhd into a corporate share trustee. Emerald Unity is an SPV incorporated to hold the residual assets and liabilities upon the implementation of the proposed scheme, MBSB said. MBSB to dispose of nonfinancial units, non-performing conventional loans to SPV KUALA LUMPUR (Sept 18): Citaglobal Bhd has entered into a memorandum of understanding (MOU) with China government-linked Shanghai SUS Environment Co Ltd (SUS), with a RM15 billion investment commitment from SUS for joint collaboration and development of waste-to-energy (WTE) projects in Malaysia. This confirmed a report by The Edge weekly in its latest edition that Citaglobal was expected to sign a new MOU for WTE venture as its management strives to expand the group further. The MOU’s purpose was to formalise the intention of both parties to explore potential collaboration and assess the feasibility of developing WTE power plants primarily in Malaysia, according to Citaglobal’s stock exchange disclosure on Monday. Citaglobal said the plan is to divert all waste from unsustainable landfills to WTE plants and holistically resolve waste disposal problems in Malaysia. The group said this collaboration, if it materialises, will be in line with boosting Malaysia’s renewable energy capacity target from 40% in 2035 to 70% by 2050, as announced in the National Energy Transition Roadmap in July 2023. Following the execution of this MOU, which is effectively immediately, Citaglobal said it will assume a leading role in the project development of the proposed WTE China govt-linked unit commits RM15 bil investment for waste-to-energy partnership with Citaglobal by Chester Tay theedgemalaysia.com by Sulhi Khalid theedgemalaysia.com After the transfer, MBSB will dispose of its five subsidiaries to Emerald Unity, namely MBSB Development Sdn Bhd, Prudent Legacy Sdn Bhd (in liquidation), MBSB Properties Sdn Bhd, 88 Legacy Sdn Bhd, and Definite Pure Sdn Bhd for RM2 each. While Emerald Unity will be the legal and beneficial owner of the assets, MBSB said the assets will continue to be recognised in its books. “MBSB is regarded as still retaining substantially all the risks and rewards of the assets’ ownership,” it said. The proposed scheme requires approval of at least 75% in total value of shareholders of the company, present and voting at the court-convened-meeting for the proposed scheme, among others. MBSB is in the midst of acquiring Malaysian Industrial Development Finance (MIDF) from Permodalan Nasional Bhd (PNB) via a RM1.01 billion share deal, which will see the birth of a merged entity with over RM60 billion in assets. The deal, which will see PNB owning 12.78% of MBSB, was expected to be completed in 3Q2023. Shares of MBSB settled unchanged at 73 sen, giving the bank a market capitalisation of RM5.24 billion. projects in Malaysia, while SUS will be responsible for financing, building and operating these plants. SUS is an urban solid waste treatment group incorporated in China, which tops the list of world’s largest environment polluters. The signing ceremony was held during the 20th China-Asean Expo and China-Asean Business and Investment Summit in Nanning, China, witnessed by leaderships of both parties as well as several members of Malaysian Cabinet, including Prime Minister Datuk Seri Anwar Ibrahim, Minister of Investment, Trade and Industry Malaysia Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Local Government Development Nga Kor Ming and Deputy Minister of Agriculture and Food Security Chan Foong Hin. Citaglobal disclosed that SUS is a government linked enterprise incorporated in China, with “extensive” experience in urban solid waste treatment, eco-industrial park construction, WTE engineering, procurement, construction, operations and maintenance, agricultural and forestry waste treatment and other fields. “Together with its Japanese partner, global clean technology giant Hitachi Zosen Corporation, SUS has delivered more than 1,400 WTE plants globally,” said Citaglobal. Read the full story

tuesday september 19, 2023 11 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 18): The group of shareholders making a bid to take control of KNM Group Bhd does not intend to acquire Borsig GmbH for cheap, but plans to introduce a five-year strategy to address both the company’s growth and debt repayment. This is “in stark contrast to the current management’s short-sighted focus on asset-stripping,” said Flavio Porro, a former executive director of KNM who may rejoin the group’s board as part of the new board of directors proposed by the shareholders led by German businessman Andreas Heeschen. In a statement, Porro said the proposed board intends to establish a regularisation plan which aims to align the group’s restructuring plan with its long-term strategic goals to enable the company to leverage its competitive advantages. The immediate focus is “ensuring continuity in company operations”, Porro added. Addressing an earlier plan to dispose of Borsig — proposed at a time when Porro was KNM executive director — he said “the sale might have been the right decision at the time” but the new proposed board aims to “re-evaluate this approach” and other decisions to maximise shareholder value. “We aim to open new markets and lines of business, focusing on renewable energy and engineering,” he added. “We believe that with the right leadership and strategy, KNM can once again become a leading player in the industry. “The company needs decisive, effective solutions, not half-measures or compromises. We are committed to implementing swift and effective strategies that will not only restore the balance sheet but also enhance transparency, reactivity, and sustainability for the long term,” he said. Porro’s words were in response to KNM chief executive officer and managing director Ravindrasingham Balasingham claiming that the shareholders are attempting to take control of the group as a cheaper way to acquire Borsig and FBM Group. Heeschen on Sept 1 filed a notice with a group of shareholders seeking to remove all existing KNM directors, including its chairman Tunku Datuk Yaacob Khyra, who holds an indirect 9.44% stake in the group. Among the replacements proposed were Tunku Kamariah Aminah Maimunah lskandariah Sultan Iskandar, the eldest sister of the Sultan of Johor, and Porro. Weighed down by debt and liquidity issues, KNM, now a Practice Note 17 company, is undertaking an asset monetisation exercise. It previously attempted to dispose of Borsig at a discount for €220.8 million (RM1.1 billion), but the deal did not materialise. KNM must submit a regularisation plan to regulators by end-October. The extraordinary general meeting (EGM) to deliberate on the proposed board changes will be held on Oct 16. Shares in KNM ended half a sen or 4.55% lower at 10.5 sen, giving the group a market capitalisation of RM424.82 million. Read also: Is the bid to control KNM a ‘cheaper’ way to acquire Borsig, asks MD Entry into KNM ‘not to acquire Borsig for cheap’, long-term plan in the works KUALA LUMPUR (Sept 18): Cape EMS Bhd is buying US-based electronic manufacturing services (EMS) player iConn Inc for US$16.5 million (RM76.6 million) in a bid to strengthen the group’s offerings and presence in the world’s largest economy. To fund the acquisition, Cape EMS — whose IPO in March raised RM155.7 million — plans to undertake a private placement equivalent to 10% of its share base, the group said in a stock exchange filing on Monday. The placement, it said, will raise an estimated RM106.15 million based on an indicative placement price of RM1.15, which represents a 4.5% discount to the group’s five-day volume weighted average market price up to Aug 25. Cape EMS’ shares last traded at RM1.14 on Monday, down five sen or 4.2%, valuing the group at RM1.05 billion. While the current price is above the IPO price of 90 sen, it is 24% shy of the counter’s highest level of RM1.50 reached on April 19. Cape EMS updated that there remains RM133.15 million from its IPO proceeds that has yet to be utilised. This money is slated to be invested into other expansion use, like construction of new warehouse and automated storage facilities, setting-up of new cleanroom facility and purchase of new automated production lines for EMS operations, installation of energy saving cooling system, and purchase of new machinery and equipment for die cast manufacturing related services. The group said its acquisition of the EMS player comes with a guarantee of US$8 million aggregate profit after tax between 2024 and 2026. iConn, which is involved in the provision of virtual manufacturing — comprising, among others, designs for manufacturing, engineering and sourcing specialists — is currently 44.6% owned by Hidirlar Family Trust, 36.9% by Rabia Hidirlar Investment Trust and 18.5% by Low Kim Teck Henry. “iConn’s services are complementary to the Cape EMS Group’s EMS operations, as the Cape EMS group currently relies on Cape EMS undertakes private placement to fund RM77 mil acquisition of USbased EMS peer its customers for the provision of electronic schematic, assembly drawings, wire lists and test specifications for its box build assembly operations. “With the integration of iConn’s design and engineering capabilities into the Cape EMS Group’s EMS process, the Cape EMS Group would be able to expand its range of services under its EMS segment, thereby improving its appeal to existing and potential customers,” the group said. It added that iConn being situated in the US has a geographical advantage in supporting Cape EMS’ operations in that country. The US is Cape EMS’ biggest export market for the financial year ended Dec 31, 2022, growing by 47.8% compared to the preceding financial year. Cape EMS disclosed that it provides EMS to iConn for technology-based access points and mechanical apparatus for life science and advanced medical equipment. iConn, meanwhile, is Cape EMS’ supplier for electrical interconnect components that it uses for its other customers. Cape EMS has appointed Hong Leong Investment Bank Bhd as the principal adviser for the acquisition and as the placement agent for the private placement. Shares of Cape EMS fell five sen or 4.2% to close at RM1.14, giving it a market capitalisation of RM1.05 billion. by Chester Tay theedgemalaysia.com by Izzul Ikram theedgemalaysia.com

TUESDAY SEPTEMBER 19, 2022 12 THEEDGE CEO MORNING BRIEF BPE well placed to be enabler of emission reduction and carbon offsetting green technologies BPE Engineering & Services Sdn Bhd, a maintenance services provider in the oil and gas sector which counts Petronas and Exxon Mobil as its clients, is diversifying into the energy sector with complementing sustainability solutions. The company is widening its service offerings as, globally, oil giants are rapidly transforming themselves to become more compliant with environmental, social and governance (ESG) requirements in the fight against climate change, prompting the supply chain to follow in their footsteps. Expanding its range of services to include carbon offsetting solutions will also provide BPE with a buffer against the cyclical nature of the oil and gas industry, chairman Dato Jamelah Jamaluddin said. She said one of BPE’s core businesses is in electrical system implementation and maintenance, which is naturally in line with the world’s target to reduce carbon emissions because renewable energy works hand in hand with electrification. “With this experience, combined with the fact that we are in the oil and gas sector, we see ourselves well placed to be an enabler of emission reduction and carbon offsetting green technologies for the oil and gas, as well as energy sectors,” Jamelah said in an interview at the Oil and Gas Asia (OGA) 2023 exhibition in Kuala Lumpur, where BPE is showcasing its technology and services. BPE managing director Datuk Ir Ts Hj Mohd Isnari Idris said the company has always served two market segments, one being the end consumer while the other is project driven. BPE is widening its services to include providing sustainability solutions in both these segments. “One solution for the end consumer centric would be our electronic live cleaning solutions electrical boards and system cleaning method. Our method, in a nutshell, cleans far better than other methods and that contributes to reducing energy loss, increasing equipment lifespan and achieving better lifecycle cost,” Mohd Isnari explained. “As for our project-based solution specifically, we have an efficient and compact waste-to-energy (WTE) system. This system allows municipal solid waste (MSW) to be used as fuel to generate electrical energy without incineration. Its compact size makes it viable for WTE with low daily waste volume, whereby incineration of WTE is impractical,” he said. Mohd Isnari added that its WTE system substantially optimises the available energy stored in waste, which would otherwise end up in landfills while at the same time emit methane to the environment. Ir Daniel Lim Kim Chuan, an independent non-executive director at BPE, said creating awareness and raising acceptance of these new services among its customers is both a challenge and an opportunity because it requires a change in mindset on how certain work procedures are implemented. “For example, while our electronic live cleaning solution complements and substantially improves cleaning efficiency with zero downtime for electrical panel and system cleaning, telling a customer that we will be cleaning their electrical switchboard using liquid is really presenting them with a culture shock,” Lim said. “On top of that, the customer will also be told that he doesn’t need to shut down his system during the maintenance, something that’s not typically done. It is fair for the customer to be extremely apprehensive and sceptical,” he elaborated. “This requires us to do live demonstrations and prove to them that the solution works,” Lim said. Jamelah and Mohd Isnari said BPE’s expansion into green technology is aligned with the world’s and Malaysia’s goals to achieve net-zero emissions by 2050. The OGA 2023 exhibition also provided a platform for BPE to showcase its new services to the industry. “We want to tell the industry that we are present, we have the technology to support the world and the government’s direction, and we have the technical team to implement this to achieve a common goal,” Mohd Isnari said. Visit the company’s website at https://www.bpe.com.my/ Economy Minister Rafizi Ramli (centre) and Mohd Isnari (second from right) at OGA 2023 From left: Lim, Jamelah and Mohd Isnari at the OGA 2023 exhibition in Kuala Lumpur

TUESDAY SEPTEMBER 19, 2023 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Sept 18): ITMAX System Bhd’s (ITMAX) subsidiary has secured a contract entailing the provision of video surveillance services for the Johor Bahru City Council (MBJB) worth RM105.32 million for a 15-year period. In a local bourse filing on Monday, the group, which debuted on the Main Market of Bursa Malaysia in December 2022, highlighted that the contract will commence from September 2023 to September 2038. According to the group, the contract, which includes a smart command centre and a closed circuit camera system with artificial intelligence features on a service subscription basis, was awarded by MBJB to its 65%-owned subsidiary, Southmax Sdn Bhd. “The contract is expected to contribute positively towards its earnings and net assets per share,” it said. At noon break, shares in ITMAX ended five sen or 3.52% higher to RM1.47, valuing the smart city integrated system and solutions provider at RM1.51 billion. ITMAX subsidiary bags 15-year video surveillance job worth RM105 mil from MBJB BINTULU (Sept 18): Sarawak has decided to shelve its plan for a second methanol plant in Tanjung Kidurong with a project to produce ammonia, said state Premier Tan Sri Abang Johari Tun Openg. He said he had requested Sarawak Petchem Sdn Bhd to review the proposed second methanol plant, as Sarawak already has a plant producing it. “The second plant will be based on ammonia, as we see that the market is there for ammonia, particularly in Europe, the Far East and Asean countries. “Because of that, I have requested Petchem to set up a plant in Bintulu. This is something new — blue ammonia. If you calculate the return of this investment, it is guaranteed, depending on how you market your product,” Abang Johari said at a ceremony to commemorate the readiness of the Bintulu Additional Gas Sales Facility to deliver the gas in Tanjung Kidurong here on Monday. Abang Johari stressed that the petrochemical and power industries are two important approaches for Sarawak to achieve its Post-Covid-19 Development Strategy 2030. “I am keen to see the growth of these two sectors contributing towards the creation of jobs in Sarawak, keeping with our plan to see the workforce expand close to 195,000 jobs, while narrowing the development gap between urban and rural Sarawak,” he said. With improved access to energy, Sarawak can accelerate its digital adoption, allowing for better ease of doing business, better-developed people, and better optimising the use of its assets. The premier also said that the collaboration between the region and Petronas had been quite well under the commercial settlement agreement, and both parties could collaborate further, particularly in downstream activities. Abang Johari stated that Prime Minister Datuk Seri Anwar Ibrahim recognises Sarawak’s desire to explore new technology to generate energy not just for itself, but also for its neighbouring regions. “With all the basic feedstock available, Sarawak wants to contribute to the region and become the hub of Asean in terms of energy,” he said. Dayang Enterprise secures extension for maintenance job contract from PTTEP PRIYATHARISINY VASU theedgemalaysia.com BY SULHI KHALID theedgemalaysia.com KUALA LUMPUR (Sept 18): Dayang Enterprise Holdings Bhd’s pan Malaysia contract from PTTEP Sarawak Oil Ltd and PTTEP Sabah Oil Ltd to provide maintenance, construction and modification has been extended until Dec 31, 2024. The original contract duration was from 2018 to mid-July 2023, the integrated oil and gas service provider said in a bourse filing. The value of the contract is based on work orders issued by PTTEP throughout the contract duration. “Dayang shall ensure strict compliance with the safety and operational procedures in the execution of the contract requirements,” the group said. It added that the contract will have no effect on its issued capital, and is expected to contribute to its earnings over the duration of the contract. Dayang shares closed up four sen or 2.19% at RM1.87 on Monday, valuing the group at RM2.17 billion. WWW.DESB.NET BERNAMA Sarawak to build ammonia plant instead of second methanol plant, says Abang Johari Bernama

TUESDAY SEPTEMBER 19, 2023 14 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Sept 18): There is no decision yet on the letter of representation sent by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi in February over the prosecution’s appeal against his acquittal in the foreign visa system (VLN) case. As a result, Court of Appeal deputy registrar Mohd Khairi Haron fixed Nov 17 for another case management for the court to update the status. Deputy public prosecutor Zander Lim represented the Attorney General’s Chambers, while counsel Hamidi Md Noh appeared for Zahid. Zahid, who is also the Bagan Datuk Member of Parliament, was already given a discharge by the Kuala Lumpur High Court last month from 47 charges of criminal breach of trust, money laundering and graft against him involving millions of ringgit in the Yayasan Akalbudi fund. The Shah Alam High Court in September last year had acquitted the Umno president of 40 counts of graft with regard to the VLN case without calling his defence. The 40 charges comprised 33 chargForeign visa system: No decision yet on Zahid’s representation over prosecution’s appeal against his acquittal BY HAFIZ YATIM theedgemalaysia.com NEWS IN BRIEF Control of Smoking Products for Public Health Bill to be tabled for second reading in Oct PUTRAJAYA (Sept 18): A final decision on amendments regarding compound and tax on tobacco products under the Control of Smoking Product for Public Health Bill 2023 will be made at a meeting with the Parliamentary Special Select Committee on Health on Monday. Health Minister Dr Zaliha Mustafa said the meeting will be held on Monday evening to finalise the matter before its tabling for the second reading in the Dewan Rakyat next month. She said the bill was referred to the select committee after it was tabled for the first reading in June when the committee, parliamentarians, professional bodies and non-governmental organisations (NGOs) wanted several matters in the bill to be scrutinised. — Bernama es under Section 16(A)(B) of the Malaysian Anti-Corruption Commission Act, and seven charges under Section 165 of the Penal Code. Judge Datuk Mohd Yazid Mustafa, who has since retired, ruled that the prosecution had failed to prove a prima facie case, and questioned the size of the brown envelope that Ultra Kirana Sdn Bhd directors Harry Lee Vui Khiun and Wan Quoris Shah Wan Abdul Ghani, as well as former administrative manager David Tan Siong Sun had purportedly used to deliver foreign currencies, mainly Singapore dollars, to Zahid. Yazid further said that their evidence for the delivery of cash monies was not corroborated, as there were no CCTV recordings or pictures tendered, unlike in Datin Seri Rosmah Mansor’s corruption case, in which independent witnesses testified on the delivery of millions of cash in bags. Subsequently, the prosecution filed an appeal against this decision. It is understood that the records of appeal are ready, and the petition of appeal has already been filed. Pensonic chairman sells 10.34% stake for RM10.3 mil KUALA LUMPUR (Sept 18): Pensonic Holdings Bhd chairman Datuk Seri Chew Weng Khak @ Chew Weng Kiak has disposed of a 10.34% stake in the electrical home appliances maker for RM10.27 million. According to a bourse filing on Monday, Chew sold the stake comprising 13 million shares via Chew Weng Khak Realty Sdn Bhd on Sept 15, slashing his shareholding in Pensonic to 20.29%. A check with Bloomberg shows that the 13 million shares were sold to Sphere Corp Sdn Bhd at 79 sen per share, or RM10.27 million. It is worth noting that in less than a month, Pensonic’s share price has risen 58.24% — from 45.5 sen on Aug 23 to 72 sen on Monday. At 72 sen, Pensonic is valued at RM93.36 million. — by Izzul Ikram Priceworth proposes fourth private placement in four years to raise RM15 mil KUALA LUMPUR (Sept 18): Priceworth International Bhd has proposed a private placement to raise up to RM15.52 million for working capital and to fund its timber reforestation activities. From total proceeds of RM15.52 million, the bulk or RM10.46 million has been earmarked for working capital and another RM5 million will be used for timber reforestation. The proposals are expected to be completed in the first quarter of 2024. Notably, the group had embarked on three rounds of private placement for the past three consecutive years, raising RM9.22 million in 2020, RM2.05 million in 2021 as well as RM13.64 million in 2022-2023 (RM9.1 million in Aug 2022 and RM4.54 million in Jan this year). On top of that, the group has raised RM100 million via the issuance of its 2% redeemable convertible notes, due in 2024. The proceeds raised from the issuance of the notes were earmarked for infrastructure costs for timber logging and repayment of bank borrowings. — by Justin Lim Sunview inks deal with UOB to provide installation of solar power systems for local businesses KUALA LUMPUR (Sept 18): Sunview Group Bhd has entered into an agreement with UOB Malaysia to provide installation and management services of solar power systems for local businesses and consumers. Through its whollyowned unit Fabulous Sunview Sdn Bhd, Sunview will provide services in the development, planning, procurement, as well as construction and maintenance of solar photovoltaic (PV) systems for commercial, industrial, residential and large scale solar (LSS) projects, the group said in a statement. UOB Malaysia, meanwhile, will provide Sunview with financing to complete the projects, as well as supply chain support, including access to the bank’s U-Solar programme’s ecosystem of equipment suppliers. In addition, Sunview’s customers will also be able to obtain end-user financing options when acquiring Sunview’s products or services, said the renewable energy player with expertise in the engineering, procurement, construction and commissioning (EPCC) activities. — by Syafiqah Salim

TUESDAY SEPTEMBER 19, 2023 15 THEEDGE CEO MORNING BRIEF It seems like an increasing number of enterprises are migrating to the cloud. Can we confidently say that it is the best decision to make? Don't hesitate. The cloud service provider with ten years' experience, eCloudvalley(ECV) is here to suggest you think deeper to make sure your decision to go on cloud would truly benefit your business. Both on-premise and cloud environments feature with di€erent advantages however, business are now facing challenges and opportunities. Cloud techs show its excellence in scalability, accessibility, global reach, and rapid development. To better manage your business in this era, try taking a closer look at the cloud trend. Questions 1: Is the Cloud database truly secure and reliable? The on-premises infrastructure is physical organization have full control over it. The data location is clear. While the cloud is virtual, the cloud provider has control to some extent. If these are your main considerations for cloud adoption, then you are partially right. Try to eliminate bias, and you will discover that adopting a cloud database ensures professional security operations from global cloud providers like Amazon Web Services (AWS). You don't have to take the risk that the on-premises can be damaged by natural disaster or theft. Most of the time, it is hard to re-collect data once the on-premises broke while you will always have the backup and recovery using cloud. Cloud technology o€ers reliability features such as advanced monitoring and problem detection capabilities, thanks to its high-speed computing ability. The reliability of a cloud-based solution highly depends on how well it is designed, configured, and managed. eCloudvalley provides 24/7/365 managed security services and in May ECV has been recognized as the Amazon Web Services MSSP（AWS Managed Security Service Provider）competency. ECV is the first service provider in Taiwan to acquire this significant cloud security certification. Questions 2: Does it cost a lot for scaling in the cloud? How about the complexity? The benefits of the cloud include agility and flexibility, particularly in meeting complex customer demands. It means that cost and the complexity may di€er a lot considering many factors. Each client has its own business model and goal so does the cloud journey. ECV prioritizes customers' needs and helps them specifically identify their expectations for using cloud services. Speaking of complexity, an online shopping aggregator platform, iPrice once worked with a provider which lack understanding toward their needs and they encountered many challenges when working with that cloud provider. As their business keep expanding, they think it's time to change and they found ECV as the cloud partner. iPrice pointed out that eCloudvalley is always available to address concerns and provide strategic guidance. ECV impressed them with technical expertise and comprehensive knowledge of AWS services. Enterprises use cloud to enhance the business therefore the proper way to evaluate your cloud investment is not just about how much does it cost but how you benefit from it. iPrice pointed out that their cloud journey with ECV has increased their operational e–ciency, allowing them to respond quickly to market demands. Additionally, ECV has the expertise in managing clients' cloud billing which allows customers to gain better control over the expenses. To sum up, a superior cloud consultant can help you truly gain profits from the technology also make youclear-eyed while moving to the cloud. eCloudvalley always starts by identifying the customers' needs and then creating customized solutions for them. Question 3: Operational excellence is time-consuming and disruptive Business owners may have concerns about encountering issues related to the learning curve, changing management, or experiencing downtime during migration. Below is a case study of ECV that addresses these concerns. ZUS Co€ee as newcomers to AWS technologies, they sought professional assistance from ECV to review the infrastructure and optimize operational costs. ECV has facilitated the seamless scaling of their business, significantly streamlining their operations. ZUS App has leveraged the AWS Lambda serverless service, benefiting from its dynamic scalability that adjusts to demand. This strategic choice has significantly alleviated the burden of their team, as they are no longer required to engage in time-consuming DevOps tasks. As a result, our team can now maintain a concentrated focus on creating engaging and innovative customer experiences for our ZUS App. Moreover, with the invaluable support of eCloudvalley, they successfully established a robust data warehouse from scratch. This achievement has enabled the company to e€ectively centralize data and gain invaluable insights, facilitating well-informed business decisions and streamlined identification of potential challenges. From the story of ZUS Co€ee, the process is not time-consuming or disruptive, and their partnership with ECV makes everything easier for business operations and employees' routine work. Contemplating a Move to the Cloud? Ponder These Questions Before Taking The Leap Come and celebrate with us on September 20th as we mark eCloudvalley's 10th Anniversary! The event will be held at ROM 8 Studio, starting at 12 pm until 8 pm. ECVolution Malaysia 2023 Partnering with eCloudvalley has been a game-changer for our company. Their professionalism, technical know-how, and exceptional customer service have enabled us to e€ectively utilize AWS and expand our business. We highly recommend eCloudvalley to any organization looking for a reliable partner for your cloud consultation. eCloudValley has delivered exemplary professional services, encompassing comprehensive consultation, expert guidance, and invaluable suggestions. These contributions have facilitated the seamless scaling of our business, significantly streamlining our operations. Their unwavering support has played a pivotal role in our sustained growth and success. SCAN HERE

TUESDAY SEPTEMBER 19, 2023 16 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Sept 18): An entity known as “Prince Faisal” from the Kingdom of Saudi Arabia transferred US$20 million (approx RM60.6 million at the time) of 1MDB money to former prime minister Datuk Seri Najib Abdul Razak’s private AmBank accounts in 2011, a Bank Negara Malaysia (BNM) analyst affirmed at the High Court on Monday. The monies, which were transferred from a Riyad Bank account, originated from the bank account of Jho Lowlinked Seychelles shell company Good Star Ltd, said Adam Ariff Mohd Roslan, who is the prosecution’s 47th witness in the 1MDB-Tanore trial. The monies were transferred in two tranches of US$10 million each on February 24, 2011 and June 14, 2011, the analyst testified. At the trial, Adam testified that the money was part of the US$24.5 million which was transferred from Good Star to Riyad Bank. Based on the instruction letters from Good Star regarding the transfer of money, the Riyad Bank account which had transferred the money to Najib’s AmBank account ending “694” was held under the names “HRH Prince Faisal bin Turki Al-Saud / HRH Prince Saud bin Abdulaziz Al-Saud”. “Based on the proximity between the dates that Good Star sent the funds to the Riyad Bank account and the dates the Riyad Bank account sent funds to the AmPrivate Banking–MR account, as well as the proximity of the value of funds sent to the Riyad Bank account and the value of funds it transferred to the AmPrivate Banking–MR account, it is reasonably believed that the Riyad Bank account was used as a pass through account to transfer monies from Good Star, originated from the subject matter,” the witness testified. Read the full story 1MDB-Tanore trial: ‘Prince Faisal’ transferred US$20 mil of Good Star funds to KUALA LUMPUR (Sept 18): Former ex- Najib, says witness ecutive director of Consortium Zenith Construction Sdn Bhd (CZCSB) Ibrahim Sahari on Monday denied lying to the Sessions Court that the RM2 million which was paid to businessman G Gnanaraja in August 2017 was given to former Penang chief minister Lim Guan Eng. Fifty-nine-year-old Ibrahim, the 29th prosecution witness, was confronted with this when cross-examined by Lim’s counsel Gobind Singh Deo. Gobind brought up the inconsistency in his testimonies — when he testified in the Shah Alam Sessions Court against Gnanaraja, and in this court against Lim. The lawyer said that in Shah Alam, Ibrahim testified that in 2019, the RM2 million paid in August 2017 — part of the RM19 million that formed the cheating charge faced by Gnanaraja — was paid to the businessman. However, in Lim’s trial here, the former CZCSB director instead had testified that the money was to be paid to Lim. When confronted with the discrepancy, Ibrahim maintained that he was told by CZCSB senior executive director Datuk Zarul Ahmad Mohd Zuklifli about the matter, and told the lawyer he should ask Zarul instead. Gobind: In Shah Alam, you told the court the payment of RM2 million in August 2017 was paid to Gnanaraja, while at the court here in Kuala Lumpur, you said that it was paid to Lim? Ibrahim: Yes. Gobind: There is inconsistency in your statements. Ibrahim: I don’t agree. Gobind: Is that a lie? Ibrahim: I am not lying. Gobind: You don’t agree it was a lie? Ibrahim: I don’t agree. Gobind: Zarul told you he was cheated by Gnanaraja in January 2018. He (Zarul) was quite specific that he was cheated of RM19 million. Ibrahim: Yes. Gobind: At the same time, Zarul also told you he paid money to Lim Guan Eng? Ibrahim: Yes, but he never told me how much. The witness was cross-examined during Lim’s undersea tunnel graft trial. As Gobind reiterated that his testimony in the two courts seemed inconsistent, Ibrahim maintained that part of the money, possibly including the RM2 million in August 2017, was for the former Penang chief minister. Ibrahim testified in June last year that Zarul told him funds belonging to CZCSB were used to pay Lim, and this was disclosed after Zarul was released from remand by the Malaysian Anti-Corruption Commission in January 2018. “However, Zarul did not tell me about the amount and method of the bribes paid to Lim,” he added. Ibrahim reiterated on Monday that he was told by Zarul about the matter, despite Gobind’s continued insistence that this is a lie. Sessions Court judge Azura Alwi said that the consistency of the testimonies should be determined by her court. Letter of demand against Gnanaraja withdrawn During re-examination by deputy public prosecutor (DPP) Datuk Wan Shaharuddin Wan Ladin, Ibrahim agreed that CZCSB’s board of directors had agreed to issue a letter of demand to Gnanaraja in January 2018. “Yes, a letter of demand was issued by CZCSB via Messrs Shahrul & Hamidi,” the witness said. When asked about the outcome of the matter, Ibrahim said the action was discontinued. Wan Shaharuddin also asked Ibrahim whether he knew what was the result of Gnanaraja’s Shah Alam case, to which the witness replied he did not. When shown documents of the Shah Alam case, Ibrahim learned that although Gnanaraja was charged with cheating, he pleaded guilty to an alternative charge in relation to an offence under the Companies Act 2016. As a result, Gnanaraja was fined RM230,000 for using a company’s property, with a value of RM11.42 million, to obtain direct profit for himself, without seeking approval in a shareholders’ meeting. Meanwhile, when DPP Mahadi Abdul Jumaat quizzed Ibrahim over the conflicting testimonies, the witness replied that this was due to different personalities involved, namely Gnanaraja and Lim, as well as their charges. Read the full story Witness denies lying about bribing Guan Eng BY HAFIZ YATIM theedgemalaysia.com BY TIMOTHY ACHARIAM & TARANI PALANI theedgemalaysia.com

TUESDAY SEPTEMBER 19, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Sept 18): Thai Prime Minister Srettha Thavisin is eyeing holidaymakers from India to boost tourism, even as the Southeast Asian nation plans visa waivers for travellers from China and Kazakhstan in the busy holiday season. Srettha said he would make a trip to India this year with plans to meet his counterpart Narendra Modi and discuss increasing flight frequency between the two countries, including more services by flag carrier Thai Airways International Pcl. “There aren’t that many incoming flights from India yet due to internal politics,” Srettha said in an interview during a media forum on Monday. “I hope to visit before the end of the year to negotiate on the issue.” Thailand may also mull other measures to boost Indian tourist arrivals, such as offering tax exemptions on jewellery imported for Indian weddings held in Thailand, a popular destination for such ceremonies, he said. As Indian tourists already can easily obtain Thai visas, a visa waiver may not be necessary, he said. Srettha’s comment came a week after his cabinet approved temporary visa exemptions for Chinese and Kazakh tourists ahead of the high season. Tourists from the two countries can enter Thailand without a visa between Sept 25 and Feb 29, and can stay for a maximum of 30 days at a time. The visa waiver programme is expected to bring in 35 billion baht (RM4.6 billion) from Chinese tourists, Srettha said during the forum. Thailand has been ramping up measures to boost the travel industry, a key growth driver of the second-largest economy in Southeast Asia. It aims to raise tourism revenue to its pre-Covid levels, with a target of 3.1 trillion baht in 2024. Thailand has welcomed 18.5 million foreign tourists so far this year with as many as 28 million expected by the year-end. Revenue from foreign travellers totalled 775 billion baht as of Sept 11, according to the tourism ministry. Prior to the pandemic, the nation hosted a record 40 million tourists in 2019. Read also: Thailand to tighten tax rules on overseas income to aid economy Thailand to roll out more populist policies this year, says PM Thailand eyes India to boost tourism recovery after waiving visa for China (Sept 18): Treasury Secretary Janet Yellen said that the US economy is showing no signs of a looming recession and that it’s too soon to tell what impact there may be from the strike in the US automobile industry. “I don’t see any signs that the economy is at risk of a downturn,” Yellen said on Monday in an interview with CNBC. While softening somewhat, the labour market is still in a “healthy” condition, industrial output is rising and “inflation is moving down,” she said. Yellen said that she’s monitoring a number of developments, including a potential blow to consumer spending from the resumption of student-loan payments after a years-long moratorium. Credit continues to be available, although interest rates have climbed and that “has made a difference in some sectors.” She also said she expects oil prices will stabilise. As for the impasse between the United Autoworkers Union (UAW) and the carmakers Stellantis NV, Ford Motor Co and General Motors Co over pay, Yellen said the Biden administration is expecting that the sides will be negotiating “24/7” to get a solution. “It’s premature to be making forecasts on what it means for the economy,” she said. “It would depend very much on how long the strike lasts and exactly who’s affected by it.” Yellen says premature to judge auto strike impact, wants win-win deal Yellen said “The two sides need to narrow their disagreements and work for a win-win,” she said. The Treasury chief also called on Congress to enact appropriations legislation to keep the federal government funded after the new fiscal year starts Oct 1. “There’s absolutely no reason for a shutdown,” Yellen said. While the economy is in a good condition, the loss of momentum thanks to federal government disruption is “something we don’t need as a risk,” she said. Republicans in the House, where they hold a majority, have been battling to consolidate behind legislation that could pass in that chamber. Right-win GOP members have been pressing for deeper spending cuts — arguing that US fiscal deficits pose a major economic threat — that wouldn’t win majority support in the Senate. Yellen said that she isn’t seeing any notable worry in the bond market about the size of US Treasury debt issuance. Still, it’s important to make sure fiscal deficits are “under control,” and reducing them is something to work on going forward, she said. Read also: UAW to resume Stellantis bargaining talks on Monday morning BY CHRISTOPHER ANSTEY Bloomberg BY PATPICHA TANAKASEMPIPAT Bloomberg Treasury Secretary Janet Yellen said that she’s monitoring a number of developments, including a potential blow to consumer spending from the resumption of student-loan payments after a years-long moratorium. BLOOMBERG BLOOMBERG

TUESDAY SEPTEMBER 19, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Sept 18): Refining, long one of the more predictable corners of the oil market, is caught in a climate bind. Environmental pressure and questions over long-term demand are prompting global energy companies, financiers and governments to edge away from fossil fuel investments, curbing the world’s oil processing capacity. And yet, today, appetite for everything from jet fuel to gasoline continues to grow apace, particularly in the world’s large emerging economies. The result is a mismatch emblematic of the challenges of the energy transition — one that has left prices more volatile than ever, and consumers perilously exposed to any supply disruption, including turmoil triggered by global warming. “Any small, operational shocks will create large market shocks, which will find their way down to the consumer’s pocket,” said Janiv Shah, senior downstream analyst at Rystad Energy. Oil demand growth has outpaced the increase in refinery capacity since 2021, and this will continue through 2027, according to industry consultant FGE. After 2028, there are no confirmed new refinery projects, it said, though there will likely be projects undertaken in Asia and the Middle East. Of course, as the global vehicle fleet electrifies and oil consumption for transport eases, that supply-demand gap will close — but it will not do so fast and that leaves ample room for trouble. All the while, long-term changes to the planet’s climate, including more frequent spells of extreme heat that already hit oil processing this summer, are also reducing the industry’s ability to cope with additional shocks, like Russia’s invasion of Ukraine last year, which upended hydrocarbon markets. “The refining system is structurally tight,” said Nikhil Bhandari, Goldman Sachs Group Inc’s co-head of APAC natural resources and clean energy research. “That’s because of the backdrop where we’ve had 4% to 5% of global refining capacity closing in the last five years.” Global refinery processing rates this year are near record highs, according to the bank’s data going back to 2006. With refining seen as especially environmentally unfriendly, Europe and the US have been phasing out older plants, along with Australia, Japan, and New Zealand. Global majors have cut smaller operations. Refining investment has instead been led by Asia, the Middle East, Africa and Latin America, with massive refineries such as Pemex’s Olmeca and Nigeria’s Dangote, owned by Africa’s richest man, Aliko Dangote. But today even in China, long a net fuel exporter, there is little spare capacity to increase shipments significantly over the next two years to cope with strong demand. A crunch in key corner of oil market leaves consumers vulnerable to heat and war (Sept 18): Global benchmark Brent rose toward US$95 (RM444.79) a barrel, extending a powerful rally driven by supply curbs from Opec+ leaders. The gains in recent sessions have been accompanied by a jump in key timespreads that suggest the market is undersupplied, while bullish call options are also getting more expensive. In the physical market, refined products like diesel are increasingly flashing warning signs, with the world’s refineries proving powerless to make enough of the industrial fuel. Prices have far outstripped those for crude. Meanwhile, at the World Petroleum Congress in Calgary, Saudi Energy Minister Abdulaziz bin Salman Al Saud said that energy markets need regulating and that actions by the Opec+ alliance Oil edges closer to US$95 a barrel as global market tightens up BY JULIA FANZERES & ALEX LONGLEY Bloomberg BY ELIZABETH LOW & YONGCHANG CHIN Bloomberg Plants there are already running at about 88% utilisation, leaving little room for more, according to Parsley Ong, head of Asian energy and chemicals at JPMorgan Chase & Co. “Refineries are already running at the highest utilisation rates in recent history.” Globally, Ong estimates 1.9 million barrels per day of refining capacity will be added this year — but shutdowns will amount to 600,000. By 2025, she expects the capacity increase will be 1.4 million bpd of capacity, with shutdowns at 900,000. “Nobody’s really adding capacity. Everyone is getting rid of it, in order to build chemicals or new materials.” The strain is already showing. Europe leans on older facilities that have seen a spate of unplanned outages as they run higher-than-usual average operating rates, leaving nations facing the possibly of a winter with insufficient diesel. All this at a time when appetite remains strong, driving up prices. In the US, gasoline prices are at the highest seasonal level in more than a decade and diesel futures have just hit a record. Globally, the workhorse industrial fuel has outpaced crude. Supply remains precarious. Across five key oil hubs across the world, inventories of light and middle-distillate fuels — the likes of gasoline, diesel and jet fuel — are currently below five-year seasonal norms, according to a report by FGE last week. “It’s hard to say if we’re moving away from oil too quickly. From an environmental perspective, you can’t move quickly enough,” said Steve Sawyer, director of refining at FGE. “Politicians are doing their job to meet people’s demands.” “But peak demand for oil may take longer than what these politicians would like.” are targeting volatility, not prices. Oil is up about 10% this year thanks to Opec+ curbs. US crude stockpiles have dropped, and speculators have boosted net-bullish wagers on Brent and US benchmark West Texas Intermediate to a combined 15-month high. The global demand outlook has brightened, too, with the US potentially avoiding recession just as refiners in China go all-out. But Prince Abdulaziz cautioned on Monday that the outlook for Chinese demand remains uncertain. Oil’s surge looks set to fan inflationary pressures around the globe just as central bankers try to determine whether to continue hiking interest rates. This will be an important week for monetary policy, with decisions due from the Fed and the Bank of England, among others. Oil demand growth has outpaced the increase in refinery capacity since 2021, and this will continue through 2027. Read also: China gasoline exports soar amid record refinery production

TUESDAY SEPTEMBER 19, 2023 19 THEEDGE CEO MORNING BRIEF WORLD SINGAPORE (Sept 18): Singapore Telecommunications (Singtel) has agreed to sell 20% of its regional data centre business to global investment firm KKR. The stake will be acquired through a fund managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) where it will commit up to S$1.1 billion in cash. The investment puts the enterprise value of Singtel’s overall regional data centre business at S$5.5 billion, around 60% higher than the $3.4 billion estimate by DBS Group Research. KKR will have the option to increase its stake to 25% by 2027 at the pre-agreed valuation. This is the first collaboration between Singtel and KKR. According to the telco, it will be able to tap on KKR’s expertise investing in data centres and telecommunication infrastructure globally in addition to capital. KKR itself is making this investment as part of its Asia infrastructure strategy. The proceeds from the transaction will go towards the expansion of the regional data centre business across Asean markets including Singapore, Indonesia and Thailand. It will also go towards exploring markets like Malaysia and others. Singtel’s regional data centre business is part of the Digital InfraCo unit which was formed in June. The telco is one of the largest data centre operators in Singapore. In addition to 62MW of existing capacSingtel to sell 20% stake in regional data centre business valued at S$5.5 bil ity in Singapore, Singtel is building a new 58MW DC Tuas in Singapore and has also partnered Telkom and Medco Power in Indonesia and GULF and AIS in Thailand to develop data centres in Batam and Bangkok respectively. The data centre portfolio will deliver a total combined capacity of over 155MW once the three new projects are operational in 2025, with room to scale up to more than 200MW. The data centre market in Southeast Asia is expected to grow by 17% over the next five years compared to 12% for the rest of the world. Some US$9 billion to US$13 billion in investments is projected to flow into the region. According to Singtel, demand for data centres is expected to outpace supply due to higher data consumption, enterprises transitioning to the cloud and the rapid rise of artificial intelligence (AI) in the region. Malaysia, Indonesia and Thailand could see the biggest increase in capacity with Johor, in particular, benefitting from spillover demand from Singapore due to the island state’s supply constraints. The growing need to handle high performance computing tasks such as generative AI will also spur a significant growth in graphics processing units (GPU)-powered data centres in the years to come. BY FELICIA TAN theedgesingapore.com Bursa Malaysia Berhad 197601004668 (30632-P) Catch all the excitement via: BursaMalaysia.com thebursabullcharge [email protected] This year, we are thrilled to be part of Bursa Bull Charge 2023 and contribute towards climate action awareness. Visit our booth to discover how you can become an advocate for change today! A Race We Can All Win! The race to Net Zero is unique in that all who participate can have a winning outcome. For businesses, this means being intentional, united and committed till the end to ensure environmental sustainability. Bursa Malaysia looks forward to hosting Bursa Bull Charge on 8 October 2023 (Sunday) at the Exchange Square, with over 70 corporations participating. Businesses play a vital role in adopting climate mitigation and adaptation strategies that are inclusive and equitable. As one of the nation’s leading telcos, CelcomDigi is committed to responsible operations that reduce carbon footprint across our value chain. We are adopting new technology solutions, forging partnerships, engaging stakeholders, and empowering communities to protect our environment. SAMUEL ISAAC CHUA/THE EDGE SINGAPORE

tuesday september 19, 2023 20 The E dge C E O m o rning brief world (Sept 18): For currency speculators around the world, the trade has long been a no-brainer: simply borrow yen, which costs nothing because of sub-zero interest rates in Japan, and then park the money anywhere yields are higher, earning a tidy profit from the difference. But now, a surprising low-cost alternative to the Japanese currency has started to emerge — this time from China. In the past month, Invesco, Goldman Sachs, Citigroup and TD Securities all recommended the yuan as an attractive option for funding so-called carry trades as it weakens toward historical lows. While the cost to borrow Chinese currency in overseas markets has jumped in recent days as policymakers in Beijing work hard to defend the currency and fend off speculators, proponents of the yuan carry trade are undeterred. They say their stance has as much to do with the diverging fortunes of Asia’s two largest economies as it does with cold, hard profits or diversifying risk. Moribund for decades, a pickup in Japanese inflation — and tentative signs of a revival in growth — have fuelled talk the Bank of Japan (BOJ) will finally end its seven-year-old policy of negative rates. For China, the trade underscores how far the once-mighty juggernaut has fallen. Heavy debt loads, a housing bust and fears of deflation have prompted the People’s Bank of China (PBOC) to slash its benchmark rate twice since June to a record-low 1.8%. Many expect more cuts to come — which will make the yuan even weaker and cheaper to borrow. “If you think the BOJ is in play, then you get yen strength out of that and need to be careful, while the PBOC is still easing policy,” said Dirk Willer, head of global macro and emerging-markets strategy at Citigroup. A weak Chinese economy is “an important part of that trade.” This month, Willer’s team recommended clients sell yuan against a basket of curCarry trade mints 42% profit and sparks push into new market (Sept 18): India will see at least US$30 billion (RM140.5 billion) raised annually through primary and secondary share sales in 2024 and in the years to come, as companies and their shareholders are more willing to tap the market for funding, according to JPMorgan Chase & Co. Sales of additional shares in listed companies in the country have surpassed US$10 billion this year, more than the tally for all of 2022, according to data compiled by Bloomberg. The momentum can sustain into next year and beyond as owners of Indian companies are keen to raise funds for other investments, said Abhinav Bharti, India head of equity capital markets at JPMorgan. Demand from local asset managers as well as foreign investors is also driving share sales, he added. “In block trades, every year now you can average US$10 billion from 2024 onwards,” Bharti said in an interview in Mumbai. “I can see the building blocks of India becoming a market that can every year raise more than US$30 billion from primary and secondary sales for corporates.” JPMorgan is the top manager of equity and rights offerings in India in the first eight months of 2023, according to data compiled by Bloomberg League Tables. The American bank has a market share of nearly 15%, followed by Kotak Mahindra Bank Ltd, which has an 11% share of the market. In contrast to block trades, India’s IPO activity has slowed down significantly this year, tracking a global slump in dealmaking. Companies have raised about US$3.2 billion through first-time share sales so far JPMorgan sees India share sale boom reaching US$30 bil in 2024 by Baiju Kalesh & Chiranjivi Chakraborty Bloomberg by Ye Xie & Carter Johnson Bloomberg in 2023, down from US$5.5 billion for the same period last year, data compiled by Bloomberg shows. There haven’t been any US$1 billion IPOs since Life Insurance Corp of India’s US$2.7 billion listing in May 2022. A couple of US$1 billion-plus IPOs could return to India after the country’s federal elections between April and May, Bharti said. The banker expects bigger IPOs to come from sectors such as consumer, technology and financial services. Strong corporate earnings and robust economic growth are drawing investors even as they flee other Asian emerging markets. China’s currency has plunged amid concerns over the once fast-growing nation’s precarious economic outlook and geopolitical tensions. “Because of recent softness in Chinese economic data, a lot of these global EM fund managers are underweight on China and now where you go and deploy that extra capital, you must have a counter overweight as well,” Bharti said. “India is benefiting from that.” rencies that includes the dollar and the euro. There are plenty of caveats, of course. No one is suggesting the yen carry trade is dead or that speculators abandon the yen for the yuan. So far this year, funding purchases with the yen in Latin America — where benchmark rates are as high as 13.25% — has been particularly profitable. An equal-weighted basket of reais, and Colombian and Mexican pesos has gained 42%, easily surpassing the Nasdaq’s rally. And the yuan is no sure bet as a funding currency. China has aggressively intervened to prop it up in overseas markets. State-owned banks have drained the supply of offshore yuan periodically to jack up funding costs and scare off speculators. On Wednesday, the cost of borrow yuan for three months briefly soared above 4%, the highest in five years. Despite the risks, a growing number of traders still see value in the yuan as a means to spread out the funding risk on their carry trades. While yen carry trades boomed the past two years as just about every central bank outside Japan aggressively raised rates, the worry now is that the BOJ will join in, especially as inflation has topped its 2% target for over a year. Traders recently priced in expectations the bank will raise rates in January. Read the full story Bloomberg

TUESDAY SEPTEMBER 19, 2023 21 THEEDGE CEO MORNING BRIEF Let’s celebrate our cultural diversity in perfect harmony. Happy Malaysia Day! to watch videos from the musical ‘In Perfect Harmony Too’ presented by The Edge and Dama Asia

TUESDAY SEPTEMBER 19, 2023 22 THEEDGE CEO MORNING BRIEF WORLD LONDON (Sept 18): The central bankers’ central bank, the Bank for International Settlements, has urged investors to hunker down for an extended spell of unpredictability in global interest rates, as well as rising pressures in the financial system. The possibility of inflation remaining stubbornly high and requiring major central banks like the US Federal Reserve and European Central Bank to keep borrowing costs at their current elevated levels should not be underestimated, the BIS said. “Clearly there are still some residual differences between what financial markets are seeing and the communication that has come from central banks,” Claudio Borio, the head of BIS’s monetary and economics unit, said as part of a quarterly report. The assessment comes as global markets have largely shrugged off the collapse of a number of mid-sized US banks this year triggered by the sharp rise in rates, as well as the emergency takeover of Credit Suisse by UBS. Borio said that after years of predictability — when back-to-back crises pushed rates to sub-zero levels in some parts of the world, followed by rapid increases in the last 18 months — the directionality of central banks was no longer a given. “The risk that inflation might turn out to be more stubborn than expected is something that we should not rule out,” Borio added. “Therefore business models, trading strategies, that were predicated on that assumption [of rates coming down quickly] are particularly vulnerable to current conditions”. There was also a warning that the pressure of higher borrowing costs could leave businesses and mortgage borrowers unable to cope and cause credit losses for banks and other lenders. While there have been some signs of stabilisation in some property markets around the world, the loan losses both there and in other sectors will continue to cause problems as economies now weaken, Borio estimated. “The question is how resilient the overall financial system is going to be in order to absorb those losses,” he added, “and particularly how large and persistent those losses are going to be”. The BIS report also reiterated concerns about the impact on highly leveraged parts of the financial sector that had bet on US interest rates staying lower than they ultimately have. “The current build-up of leveraged short positions in US Treasury futures is a financial vulnerability worth monitoring,” the BIS said, citing the risk of “margin call spirals”. Margin calls are where institutions suddenly have to find cash to cover potential losses when market prices move against them. Recent examples were seen in March 2020 when the Covid-19 pandemic struck, and in September 2019 in the bank-tobank ‘repo’ lending market. “Margin deleveraging, if disorderly, has the potential to dislocate core fixed income markets,” the BIS said. Read also: Fed unlikely to raise rates in November, says Goldman Sachs Central bank body BIS flags new unpredictability in interest rate markets (Sept 18): Cryptocurrency platform JPEX shut down some trading during an ongoing investigation by the Hong Kong police. Users won’t be able to place new orders on its Earn Trading interface from Monday, according to a statement Sunday, referring to some wealth management products. JPEX is negotiating with third-party market makers to resolve a liquidity shortage, the statement said. Hong Kong police are investigating JPEX after a referral from the Securities and Futures Commission, the markets regulator. The SFC has said the firm was operating in the city as an unlicensed entity, the first such warning by the watchdog since the country boosted efforts to grow Hong Kong’s presence as a crypto hub by luring more individual investors. JPEX said market makers had frozen funds following probes by Hong Kong authorities. Existing orders on Earn Trading will continue until the product’s maturity, it said. JPEX didn’t respond to a request for comment. The Hong Kong police arrested influCrypto platform JPEX shuts down trading amid Hong Kong probe encer Joseph Lam Chok in connection with the JPEX probe and police officers were seen carrying boxes into a separate vehicle, according to local media reports and a footage on HK01. Four men and two women were arrested on Monday and are suspected of “conspiracy to defraud,” according to statement from the Hong Kong police. Authorities have so far received 1,408 complaints on JPEX involving HK$1 billion (RM595.1 million). The operation is ongoing and more arrests could be made, the police added. JPEX is headquartered in Dubai, according to its website. Read also: Ant to pull out of US$100 mil fund in retreat from crypto BY SUVASHREE GHOSH & KIUYAN WONG Bloomberg BY MARC JONES Reuters REUTERS

tuesday september 19, 2023 23 The E dge C E O m o rning brief world (Sept 18): Asian loan volumes are poised for a rebound in 2024 thanks to expected deal flows in Australia and India that should help offset the dent from China’s economic slowdown. That’s the view of a number of bankers who recently gathered at the Asia Pacific Loan Market Association conference in Singapore. AirTrunk’s A$4.6 billion (RM14 billion) loan last month, Australia’s largest syndicated deal this year, and Adani Group’s talks for borrowings to refinance US$3.5 billion of debt are among signs of the likely pickup in activity in those two countries. The reality that hovered over that conference was that loan volumes in the region outside Japan and excluding bilaterals have slumped 26% on year to US$355 billion so far in 2023, headed for the first annual total below US$400 billion since the global financial crisis, according to Bloomberg-compiled data. But a revival in sponsor-backed merger and acquisition activity, along with an ex- (Sept 18): Online grocery startup Instacart has been flirting with an initial public offering (IPO) for years and is finally set to take the plunge on Monday in another bellwether listing for a still-anxious market. Instacart, officially Maplebear Inc, is seeking to raise as much as US$660 million (RM3.09 billion) on Monday at a valuation of more than US$9 billion and begin trading on Tuesday (Sept 19). The San Francisco company is striking while the iron is hot, on the heels of Arm Holdings plc lodging the year’s biggest IPO and then rising 25% in its trading debut last week. Shares of the chip designer, still 90% owned by SoftBank Group Corp, slipped on Friday (Sept 15) but remained up almost 20% above the offer price. If Instacart trades well, it will add momentum for other listings. Boston-based marketing and automation startup Klaviyo Inc, which is expected to price its IPO on Tuesday, decided on Sunday to boost its target for the listing to US$557 million, Bloomberg News reported. German footwear maker Birkenstock Holding Ltd is also preparing to go public within weeks. Taking its cue from Arm, Instacart is taking the safe route by lining up big investors to support its listing. It brought on PepsiCo Inc, one of its partners, to participate in the deal. It has also enlisted Norway’s Norges Bank, TCV, Sequoia, D1 Capital Partners LP and Valiant Capital Management as cornerstone investors that could take up to 60% of the shares, according to its prospectus. pected end to the rate-hike cycle by most major central banks could help change the dynamic next year. Loan volumes in the region will likely rise at least 10% in 2024, according to Amit Khattar, Asia Pacific head of investment banking and co-head of global financing and credit trading at Deutsche Bank AG. Asia loan deals set to rise on Australia, India, bankers say Instacart’s long-awaited IPO to test CEO’s pivot, market rebound (Sept 18): US homebuilder sentiment fell to a five-month low in September as higher mortgage rates continued to push many prospective buyers out of the market. The National Association of Home Builders/Wells Fargo gauge declined five points to 45 after sliding six points a month earlier. That marked the largest back-toback decrease in nearly a year. The September reading was below all estimates in a Bloomberg survey of economists. While builder sentiment had been rising this year through July amid limited resale inventory, mortgage rates above 7% risk choking off demand for new homes. Borrowing costs may remain elevated as Federal Reserve officials have indicated they will keep their benchmark rate high for the foreseeable future. “High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower,” NAHB chief economist Robert Dietz said in a statement. Many builders have been resorting to incentives in an effort to lure buyers. Nearly a third of respondents said they lowered prices to bolster sales, the largest share since the end of 2022, according to NAHB. The share of builders offering all types of buyer incentives rose to a four-month high. All indexes tracked by NAHB posted declines in September. Both current and expected sales measures fell to multi-month lows. A gauge of prospective buyer traffic dropped to the lowest since February. US homebuilder sentiment drops to five-month low on higher rates by Augusta Saraiva Bloomberg by Ameya Karve Bloomberg by Ryan Gould & Natalie Lung Bloomberg Read the full story Read the full story Bloomberg

TUESDAY SEPTEMBER 19, 2023 24 THEEDGE CEO MORNING BRIEF H O N O U R I N G M A L AY S I A’ S B E S T P E R F O R M E R S I N ESG EXCELLENCE Knowledge Partner (Funds Category) Main Partner Auditor Official Broadcast Partner Automotive Partner In Collaboration With

tuesday september 19, 2023 25 The E dge C E O m o rning brief world DOHA (Sept 18): Five US citizens left Iran and landed in Doha on Monday in a prisoner swap for five Iranians held in the US and the transfer of US$6 billion (RM22.09 billion) in Iranian funds in a rare moment of cooperation between the long-time antagonists. “Today, five innocent Americans who were imprisoned in Iran are finally coming home,” US President Joe Biden said in a statement, shortly before the US detainees descended the stairs of a Qatari jet to be embraced by US diplomats. Separately, Iran’s Press TV said the five Iranians detained by the US and charged with committing crimes had been freed, an apparent reference to their being granted clemency. Two arrived in Doha, US and Iranian officials said. It was unclear whether the exchange might bring progress on the many issues that divide the two nations, including Iran’s nuclear programme, its support for regional Shi’ite militias, the presence of US troops in the Gulf and US sanctions on Iran. In a sign Biden, a Democrat, wishes to keep a tough front towards Iran and perhaps blunt Republican criticism, he announced US sanctions on Iran’s former Iranian president Mahmoud Ahmadinejad and its intelligence ministry “for their involvement in wrongful detentions.” “We will continue to impose costs on Iran for their provocative actions in the region,” he said in the statement, in which he thanked the governments of Qatar, Oman, Switzerland and South Korea for their assistance in securing the releases. A plane sent by mediator Qatar flew the five US citizens and two of their relatives out of Tehran after both sides got confirmation the US$6 billion was transferred from South Korea to Qatari accounts, a source briefed on the matter told Reuters. Republicans have criticised Biden for paying what they say amounts to ransom for the US detainees. Biden aides argue the money belongs to Iran and is being transferred from South Korea to Qatari accounts, where it can only be spent on food, medicine and other humanitarian items with US oversight. Earlier, two of the five Iranians landed in Qatar, a US official said. Three have opted not to return to Iran. The five Iranian Americans — one of whom had been held for about eight years on charges the US had rejected as baseless — were due to board a US government aircraft in Doha and then fly home to the US. The deal, after months of talks in Qatar, removes a major irritant between the US, which brands Tehran a sponsor of terrorism, and Iran, which calls Washington the “Great Satan”. A senior US dministration official said the deal did not change Washington’s adversarial relationship with Tehran, but the door was open for diplomacy on Iran’s nuclear programme. Five US citizens land in Qatar as part of US-Iran prisoner swap (Sept 18): China flew a record number of warplanes around Taiwan, in an apparent show of displeasure over visits by a pair of American officials. Taiwan said it detected 103 People’s Liberation Army (PLA) warplanes and nine ships in its vicinity in the 24 hours to early Monday, adding that this posed “posed serious challenges to security across the strait and in the region”. The number of aircraft was the most in Bloomberg-compiled data going back three years. Forty of the planes crossed the median line in the Taiwan Strait, the second time in less than a week that China has sent that many aircraft across the line the US drew in 1954. The sorties wear down Taiwan’s much smaller military and cut the time that it has to react to any attack. While China usually doesn’t give reasons for conducting military activity around the island of 23 million people it has pledged to someday control, bigger sorties tend to coincide with meetings between foreign and Taiwanese officials. The US has criticised China for holding such exercises, calling them “provocative”. Arizona governor Katie Hobbs is leading a delegation that’s visiting until Wednesday, a trip will include a meeting with President Tsai Ing-wen. Hobbs plans to hold talks with top economic and trade officials, and the business community. Taiwan Semiconductor Manufacturing Co has said it plans to spend US$40 billion to build capacity in Arizona, though in July the chipmaker said production at a planned facility would be postponed from late 2024 until 2025 due to challenges including a shortage of skilled workers and expenses running higher than in Taiwan. Also visiting this week is Laurie Locascio, the undersecretary of commerce for standards and technology. When she met Tsai on Monday, the president said she hopes Taiwan and the US would have more exchanges on cybersecurity issues. Locascio’s visit is likely a follow-up to a rare gathering in the US in April, when US and Taiwanese security officials discussed how companies from the island could adopt key US defence supply chain standards. French Senator Olivier Cadic is also travelling to Taiwan, with plans to meet Vice Premier Cheng Wen-tsan and Wellington Koo, the secretary general of the National Security Council. In a sign of the prominence Taiwan’s status plays in tensions between the US and China, Chinese Foreign Minister Wang Yi China sends record 103 warplanes near Taiwan amid US visits used a meeting in Malta with National Security Adviser Jake Sullivan over the weekend to reiterate that Beijing considers the island a red line in the relationship. The two sides appeared to have made their usual points on Taiwan, though Sullivan emphasised that the provision of arms or foreign military assistance to Taipei doesn’t mean the US supports Taiwanese independence or views the island as a sovereign nation, according to an administration official. Last week, China announced it was sanctioning Northrop Grumman Corp and a subsidiary of Lockheed Martin Corp for supplying arms to Taiwan. Neither company has any activities to sanction in China, so the move is mostly symbolic. In August, a US agency announced a US$500 million (RM2.35 billion) sale of equipment for F-16 fighters that will be supplied by Lockheed Martin. The same agency announced in December that Northrop Grumman would supply Taiwan with a system to deploy anti-tank mines. Taiwan warned last week that China will ratchet up the military pressure it has been applying in recent years, a squeeze that’s largely borne out of frustration that Tsai’s government won’t acknowledge that Taiwan is part of China. Major General Huang Wen-chi said last Tuesday that “the PLA pressure will continue, and we think the pressure tomorrow will be larger than today”. His comments came just after China sailed 20 warships near the island, another record. by Cindy Wang Bloomberg by Andrew Mills Reuters Read the full story

tuesday september 19, 2023 26 The E dge C E O m o rning brief world JAKARTA (Sept 18): Indonesia plans to run its maiden carbon trade next week, aiming to offer companies and financial institutions a mechanism to offset their emissions, while providing funding for carbon reduction projects, authorities said on Monday. The Southeast Asian country is one of the world’s top ten greenhouse-gas emitters, but has pledged to reach net carbon neutrality by 2060 and touted the planned carbon market as a way to fund climate solutions. “The launch of the carbon exchange will take place on Sept 26, next week,” Mahendra Siregar, head of the Financial Services Authority, told a seminar. The government in the resource-rich country has previously said the market will trade carbon credit certificates issued for activities or projects that remove carbon from the atmosphere or companies that emit pollution below a limit set by the government. The environment ministry has assigned four auditors to verify carbon reduction activities so that trading can start next week, Wahyu Marjaka, a director from the environment ministry, told the same seminar. Authorities have yet to announce which exchange will host the trading, but the Indonesia Stock Exchange (IDX) has applied to become an operator earlier this month. Jakarta in February launched the first phase of mandatory carbon trading for coal power plants. The government’s initial plan was to set a pollution quota for each carbon-intensive industry and tax companies that emit above their limit without any carbon offset. But the tax plan has been shelved due to concern over its impact on economic growth. Indonesia plans first carbon trade next week BANGKOK (Sept 18): Thailand’s former prime minister Thaksin Shinawatra could be released on parole as early as late February, having already had an eight-year prison sentence commuted to one year following his return from self-exile, a senior corrections official said on Monday. Thailand’s most famous politician made a dramatic homecoming last month, 15 years after he entered self-exile, having been ousted by a military coup in 2006. While abroad, Thaksin was found guilty in absentia in three cases involving abuse of power, conflict of interest and malfeasance. His return to Thailand coincided with emergence of his ally Srettha Thavisin as the country’s new prime minister, following months of uncertainty in the wake of an election in May that resulted in defeat for the ruling pro-military party. Parties aligned with Thaksin have won every election since 2001 up until this year’s poll when the Pheu Thai, the party backed by his family, came second. The telecommunications billionaire, whose brash personality and populist policies appealed to poorer Thais, clashed with the country’s old money elites and royalist military, which also ousted his sister’s government in 2014. There was speculation that Thaksin reached some deal with his old foes, after the pro-military parties gave the Pheu Thai candidate Srettha their backing to form a new government. Thaksin and Srettha deny this. On his first night in Thailand, Thaksin was transferred to a police hospital with chest pains and high blood pressure where is currently being treated. Days later, King Maha Vajiralongkorn commuted his eight-year sentence to one year, but he could be released sooner. “After serving six months of his sentence, Thaksin will be eligible for parole for prisoners older than 70 or those who are ill,” Corrections Department Deputy Director General Sitthi Sutivong, told Reuters. The corrections department makes an assessment for each case and there is no petition process for parole in these cases, he said. The former prime minister’s treatment in hospital is at the discretion of medical professionals and does not have a time limit, Sitthi added. (Sept 18): Alcohol-infused chocolate balls are the latest item to take over China’s social media as consumers clamour for the surprise tie up between liquor giant Kweichow Moutai Co and Mars Inc’s Dove brand. The chocolates, which sell for 35 yuan (RM22.52) for two 10-gramme pieces, sold out immediately when they were launched on Saturday and presales every day since are also sell-outs. Despite some social media users complaining about the high price, the chocolates are also proving popular on resale platforms, where 12 chocolates are selling for 500 yuan, according to local media reports. The partnership follows this month’s popular launch of an alcohol-infused latte, sold at Luckin Coffee Inc stores across China, as Kweichow Moutai tries to boost its appeal to a younger demographic. The firm gets more than 80% of its revenue from moutai, a style of colourless but typically fiery liquor that’s traditionally served at state banquets and popular among middle-aged consumers. “As a traditional Chinese brand, Moutai needs to be forever young and embrace the young generation to enhance vitality,” chairman Ding Xiongjun said on Sept 16. But market watchers are split on whether the recent tie ups can translate to better sales over the longer term. Former Thai PM Thaksin eligible for parole in February — official Alcoholic chocolate sells out as another boozy craze hits China by Panarat Thepgumpanat Reuters Bloomberg by Stefanno Sulaiman Reuters bloomberg

TUESDAY SEPTEMBER 19, 2023 27 THEEDGE CEO MORNING BRIEF PRESENTS REAL ESTATE MATTERS Official Solar Partner Supported By

tuesday september 19, 2023 28 The E dge C E O m o rning brief world (Sept 18): Intel Corp is betting on an unexpected material to help the world’s computers handle ever-growing artificial intelligence (AI) workloads: glass. As processors become larger and more complex, their ability to communicate with the rest of the computer is going to become a chokepoint, according to Intel researchers. Glass-based substrates, which sit between the chip and connecting components, are the answer to this challenge, the company says. For Intel, a chip pioneer that’s now chasing Nvidia Corp for the limelight, the new approach is a chance to show off its ability to innovate for an AI world — and win new customers in the process. The company has ramped up R&D spending to nearly US$18 billion (RM84.28 billion) a year, well more than peers. Intel’s glass push is coming from its packaging research and production facilities, a little-known part of its technology lineup. The Santa Clara, California-based company is trying to raise the profile of the business, part of a broader effort to attract customers to its manufacturing operations. Since Intel was founded in the late 1960s, its factories have concentrated on almost exclusively producing its own designs. Now the chipmaker is building up its foundry operations, which make semiconductors and other technology for outside customers — one of the biggest shake-ups in the 55-year-old company’s history. Chief executive officer Pat Gelsinger has been increasingly talking up Intel’s capabilities in packaging — the technology that surrounds chips. The packaging business is seen as a way to lure in clients, who may then use Intel for a broader swath of their chipmaking needs. It’s a high-stakes bet. (Sept 18): Saudi Arabia is in early talks with US electric automaker Tesla to set up a manufacturing facility in the kingdom, the Wall Street Journal reported on Monday, citing sources familiar with the matter. The report comes just hours after Turkish President Tayyip Erdogan asked Tesla CEO Elon Musk to build a vehicle factory in Türkiye, according to the country’s communications directorate. Musk is also set to meet Israeli Prime (Sept 18): Volkswagen AG may downsize a small plant in Eastern Germany, as part of a drive to cut costs and increase profit at the company’s namesake mass-market brand. Ending production at the Gläserne Manufaktur in Dresden is one of several options under consideration, though no final decision has been made, according to two people familiar with the plans, who asked not to be named during ongoing discussions. The German carmaker plans to stop production at the plant, Automobilwoche reported on Sunday. The workers in Dresden could be shifted to other roles or locations as part of a broader revamp, people familiar with the talks told Bloomberg News. A spokesperson for Volkswagen declined to comment on speculation. CEO Oliver Blume is aiming to lift returns at the long-struggling Volkswagen brand to 6.5% for a €10 billion (US$10.7 billion or RM50.06 billion) increase in profit by 2026. The maker of the Golf, Polo and ID. cars series is competing with more profitable carmakers such as Stellantis NV in the transition to electric cars. In Europe, the Volkswagen brand’s mainstay market, consumers are feeling the strain from higher living costs amid a surge in interest rates. Minister Benjamin Netanyahu in California on Monday. Saudi Arabia has been wooing Tesla with the right to purchase certain quantities of metals and minerals the company needs for its electric vehicles from countries, including the Democratic Republic of Congo, the report said. The kingdom has been trying to shift its economy away from oil, while its sovereign wealth fund is the majority investor in Lucid Group, one of the EV startups looking to challenge Tesla’s dominance of the industry. One of the proposals the kingdom is considering involves extending financing to commodities-trading giant Trafigura for a flailing Congo cobalt and copper project, which could help provide a potential Tesla factory with supplies, the WSJ report said. Tesla and Trafigura did not immediately respond to Reuters requests for comment, while Saudi Arabia’s sovereign fund, the Public Investment Fund, declined to comment. Tesla, Saudi Arabia in early talks for EV factory — WSJ Reuters Read the full story Intel sees glass as a vital material in the race to power AI by Ian King Bloomberg Bloomberg Bloomberg Volkswagen reviews future of small-scale German plant in savings push by Monica Raymunt & Alexander Weber Bloomberg

TUESDAY SEPTEMBER 19, 2023 29 THEEDGE CEO MORNING BRIEF WORLD (Sept 18): Real estate mogul Jeffrey Soffer has waited 23 years for this moment. On Dec 13, the Florida-based developer will open Las Vegas’ newest resort, a US$3.7 billion (RM17.32 billion) palace with seven pools, 36 restaurants and bars, as well as a private club on the top floor with spectacular views of the skyline. What really stands out about the Fontainebleau Las Vegas isn’t the height — at 67 stories it’s the tallest hotel in Nevada — or the 46-foot sculpture by Swiss artist Urs Fischer in the south lobby. It’s how long it took to get built. Soffer acquired the land in 2000, but lost control of the mostly done project during the 2008-2009 financial crisis. Two more owners came and went, including billionaire Carl Icahn, before Soffer reacquired the still unfinished building in 2021 for a fraction of its original construction cost. Soffer plans to tap his database of Miami Beach guests to help kickstart the Nevada property. “We have a lot of customers that go to both places,” he said. “You sit on the beach in Miami Beach and you see planes flying banners for Las Vegas.” Soffer, who was previously married to supermodel Elle MacPherson and counts football great Tom Brady as a neighbour and friend, will likely enlist some of his celebrity chums for the opening. “All the successful properties, there’s a charismatic person at the head,” said Howard Karawan, who worked with Soffer on his first attempt at opening the resort. “Jeff is certainly that, and he has a great circle of friends.” Soffer’s biggest challenge will likely be the Fontainebleau’s location on the north end of the city’s famous Strip, far from properties like the Bellagio and Caesars Palace, where guests can more easily stroll from one to the other. Casinos at the north end, like the Stratosphere and the SLS, now back with its original Sahara name, have at times run into financial trouble. “We believe major investment, like the renovations we have completed at the Strat, and new properties will create more density and traffic over time to the north Strip,” said Charles Protell, president of Golden Entertainment, which owns the Stratosphere. The Strip’s last big opening, Genting Group’s US$4.3 billion Resorts World Las Vegas in 2021, sits almost across the street from the Fontainebleau. It recently offered midweek room rates as low as US$99 a night, even as total visitor traffic to Las Vegas has risen to nearly pre-pandemic levels. Fontainebleau plans to have rates at its 3,644 rooms start at US$300 a night. The Fontainebleau will be one of the closest hotels to the city’s convention centre, which should keep it busy with business guests on weekdays, Soffer said. The resort is built on a relatively small footprint by Las Vegas standards, less than 25 acres. Guests can access most of the property through a central bank of elevators. Soffer said his loyal, and wealthy, customers aren’t interested in hoofing it from one casino to another anyway. “Money doesn’t walk,” he said. Soffer’s father Donald, now 90, started the family real estate empire, ultimately turning swampland north of Miami into Aventura, a high-end community. After his family bought the Miami Beach Fontainebleau hotel in 2005, Soffer began work on the Las Vegas version. The original plan included selling condominiums, something his famBY CHRISTOPHER PALMERI Bloomberg Vegas’ newest resort is a US$3.7 bil palace, 23 years in the making ily had already done in Florida and Nevada. But buyer interest evaporated in 2009. With over US$2.2 billion invested and the resort about 70% finished, Soffer’s banks pulled their financing. The Fontainebleau Las Vegas declared bankruptcy. Icahn, who lives three doors down from Soffer in Florida, bought it for US$156.1 million and then sold off the furnishings. At one point, the empty building was used to train firefighters. “I wish him luck,” Icahn said in an interview. New York developer Steven Witkoff acquired the property from Icahn for US$600 million, with plans to open a resort called Drew Las Vegas. His plans fizzled during the Covid pandemic. Soffer said he reclaimed the project for less than the previous sale price, but declined to say how much. His partner is the real estate arm of Koch Industries. Financing from a consortium led by JPMorgan Chase & Co totals US$2.2 billion. Soffer said it would cost cost billions of dollars more if he were starting from scratch. “So why not just spend all the right money and make it the most luxurious place that Vegas has?” he said. BLOOMBERG Genting Group’s Resorts World Las Vegas recently offered midweek room rates US$99 a night, Fontainebleau plans to have rates start at US$300 a night. Jeffrey Soffer’s biggest challenge will likely be the Fontainebleau’s location on the north end of the city’s famous Strip, far from properties like the Bellagio and Caesars Palace, where guests can more easily stroll from one to the other. A room at the Fontainebleau Las Vegas hotel and casino.

TUESDAY SEPTEMBER 19, 2023 30 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (Sept 15, 2023) CAPESIZES The week in the Cape market has shown a mix of activity in both the Pacific and Atlantic regions. In the Pacific, the week began positively with two major players active in the market, contributing to a slight uptick in rates. Increased coal enquiries provided overall market support. However, as the week progressed, conditions stabilised, and activity became subdued. Towards the end of the week we witnessed increased activity, characterised by significant volume of cargo. This heightened market activity led to improved sentiment and a further increase in rates. In the Atlantic, the North Atlantic region saw tight conditions leading to improved fixtures. At the outset of the week, activity in the South Atlantic was sluggish, but it gradually gained momentum as the week unfolded. The C3 market had solid support, highlighted by the upward movement in rates from South Brazil and West Africa to the Far East. Overall, the week saw fluctuating market conditions, with the Pacific experiencing intermittent activity and the Atlantic showing signs of positivity. PANAMAX A strong week for the Panamax sector with steady rises throughout the Atlantic and Asian markets although we seemed to have reach a period of consolidation as the week ended. From the Atlantic basin, we saw decent levels of both grain and mineral demand versus a limited tonnage list, creating the perfect storm for owners, reports of close to US$30,000 achieved for quick duration trips via US east coast to India. South America focus appeared to be for the end of September arrival with a host of deals concluded. Asia was mostly NoPac centric, ably supported by solid mineral demand ex Australia and Indonesia enabling rates to climb from the doldrums of recent months, rates in the US$15,000’s not uncommon for NoPac round trips, even in the US$17,000’s for the real decent spec types with Japan delivery. A bunch of period deals concluded the highlight US$14,650 agreed basis one year on an 82,000-dwt type delivery China. ULTRAMAX/SUPRAMAX A better week for the sector, with increased levels of enquiry from key areas. From the Atlantic, stronger numbers were recorded from the Continent-Mediterranean regions. The US Gulf remained evenly balanced, but some healthier numbers also appeared. Whilst from South America a tightening of prompt tonnage helped sustain levels. From Asia, increased enquiry from Indonesia both to China and India was seen and owners’ expectations across the region increased. Period cover was sort, a 58,000-dwt fixing delivery Los Angeles end September for three to five months trading at US$12,000 plus US$400,000 ballast bonus. From the Atlantic, a 58,000-dwt was fixed delivery Fos for a trip to China around the mid US$20,000s. Whilst from US Gulf a 58,000-dwt was heard to have fixed a trip via US East Coast redelivery China at US$20,000. In Asia, a 61,000-dwt open SE Asia was reported fixed for an Australian round voyage at US$17,000. A 63,000-dwt open Chittagong was fixed for a log’s run via New Zealand redelivery WC India at US$14,000. HANDYSIZE Divided sentiment for the sector as healthier numbers were seen in the Atlantic, from Asia brokers generally described the week a fairly flat with cargo and tonnage levels remaining balanced. However, as the week closed some felt that there was a slight shift with a few more cargoes appearing from North Asia. In the Atlantic, better numbers were being achieved from the Continent-Mediterranean, a 35,000-dwt was heard fixed basis delivery Kalamata for a trip via Turkey to Durban with redelivery EC South America in the mid US$15,000s. Further north, a 36,000-dwt was fixed delivery Continent for a trip to EC South America with fertiliser at US$13,000. Elsewhere, a 38,000-dwt fixed delivery US East Coast for a trip to the Continent-United Kingdom with wood pellets in the upper US$12,000s. CLEAN LR2 LR2 freight levels in the MEG rose optimistically early on this week only to then come to a halt. TC1 topped out at WS145 up from WS136 to then resettle at WS142.78 at time of writing. At the WS145 mark the Baltic TCE ticked over the US$30,000/day round trip. Meanwhile a run to the UK-Continent on TC20 gradually hopped up from US$3,810,000 to US$3,950,000. West of Suez, Mediterranean/East LR2’s saw the TC15 index for second week on week continue along in the low US$2,900,000 region. LR1 In the MEG, LR1’s have led the pack this week with a consistently firming sentiment. The TC5 index added 24.06 points to WS169.69 and TC8 hopped up US$135,000 to US$3,420,000. On the UK-Continent, TC16 held resolute in the mid WS160’s all week with the TCE hovering around US$31,000-32,000/ day level. MR Despite an increase in activity on MEG MR’s this week and a subsequently strengthening market the TC17 index has held in the WS290 region all week. UK-Continent MR’s after the significant improvement on last week look to have stagnated at current levels. After reaching WS182.75 early in the week, up from WS172 the TC2 index has now been suspended there for the last three days. TC19 has mirrored TC2 as per usual practice and currently sits at WS190. Read the full report

TUESDAY SEPTEMBER 19, 2023 31 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) ICON OFFSHORE BHD 156.10 0.010 0.115 21.05 311.3 UEM SUNRISE BHD 148.88 0.115 0.845 231.37 4274.4 MALAYSIAN RESOURCES CORP BHD 78.86 0.010 0.465 57.63 2077.4 EKOVEST BHD 71.73 -0.005 0.545 60.29 1616.1 CLASSITA HOLDINGS BHD 66.41 -0.005 0.065 -82.19 80.1 ISKANDAR WATERFRONT CITY BHD 60.85 -0.010 0.685 153.70 631.0 MY EG SERVICES BHD 57.02 0.030 0.810 -5.86 5990.3 CYPARK RESOURCES BHD 55.25 0.105 0.915 94.68 718.0 WIDAD GROUP BHD 52.39 0.005 0.495 15.12 1532.7 TA WIN HOLDINGS BHD 43.47 0.000 0.035 -36.36 120.2 SAPURA ENERGY BHD 37.89 0.005 0.060 71.43 958.7 SARAWAK CONSOLIDATED INDUSTRIES 36.65 0.000 0.465 220.69 297.7 YTL POWER INTERNATIONAL BHD 35.92 0.080 2.160 202.10 17500.7 KANGER INTERNATIONAL BHD 35.80 -0.005 0.065 62.50 42.2 RGB INTERNATIONAL BHD 33.82 0.005 0.305 69.44 470.0 TANCO HOLDINGS BHD 32.85 0.010 0.555 65.67 1098.8 BUMI ARMADA BHD 28.74 -0.005 0.555 15.63 3287.1 EASTERN & ORIENTAL BHD 26.81 0.035 0.615 50.00 1051.3 VELESTO ENERGY BHD 25.61 0.000 0.260 73.33 2136.1 META BRIGHT GROUP BHD 25.32 0.005 0.215 26.47 507.5 Data as compiled on Sept 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) BCM ALLIANCE BHD 0.020 33.33 173.0 -20.00 40.7 FOCUS DYNAMICS GROUP BHD 0.020 33.33 482.4 0.00 127.4 SANICHI TECHNOLOGY BHD 0.020 33.33 215.0 -20.00 28.1 G3 GLOBAL BHD 0.025 25.00 934.5 -16.67 94.3 IVORY PROPERTIES GROUP BHD 0.080 23.08 97.7 0.00 39.2 DGB ASIA BHD 0.145 20.83 17,687.7 -3.33 27.3 GRAND CENTRAL ENTERPRISES BHD 0.390 20.00 6.1 11.43 76.8 SAUDEE GROUP BHD 0.030 20.00 326.0 -33.33 44.6 ARK RESOURCES HOLDINGS BHD 0.375 19.05 0.2 31.58 26.1 UEM SUNRISE BHD 0.845 15.75 148,878.7 231.37 4274.4 CYPARK RESOURCES BHD 0.915 12.96 55,249.9 94.68 718.0 OCR GROUP BHD 0.095 11.76 3,238.4 -5.00 122.5 HONG SENG CONSOLIDATED BHD 0.050 11.11 4,694.6 -77.27 255.4 REKATECH CAPITAL BHD 0.050 11.11 104.1 -37.50 29.6 RIMBUNAN SAWIT BHD 0.155 10.71 19,999.9 -6.06 316.5 MARINE & GENERAL BHD 0.270 10.20 24,549.5 157.14 195.4 RAMSSOL GROUP BHD 0.450 9.76 11,473.8 2.27 110.4 ICON OFFSHORE BHD 0.115 9.52 156,096.5 21.05 311.3 JADI IMAGING HOLDINGS BHD 0.060 9.09 1,027.0 -29.41 84.0 SAPURA ENERGY BHD 0.060 9.09 37,887.1 71.43 958.7 Data as compiled on Sept 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) PEGASUS HEIGHTS BHD 0.005 -50.00 587.9 -50.00 54.1 AT SYSTEMATIZATION BHD 0.010 -33.33 7618 -33.33 67.9 GREEN OCEAN CORP BHD 0.010 -33.33 325.0 -50.00 21.1 JOE HOLDING BHD 0.010 -33.33 10 -50.00 30.6 METRONIC GLOBAL BHD 0.010 -33.33 795 -50.00 15.3 MLABS SYSTEMS BHD 0.015 -25.00 639.9 -25.00 21.7 TECHNA-X BHD 0.015 -25.00 2,271.4 -40.00 33.2 SUNMOW HOLDINGS BHD 1.150 -17.86 1.0 27.78 269.0 RAPID SYNERGY BHD 20.000 -16.94 219.6 25.31 2,137.9 MQ TECHNOLOGY BHD 0.025 -16.67 9,790.5 -50.00 34.5 PRICEWORTH INTERNATIONAL BHD 0.140 -15.15 7,590.4 16.67 209.3 ALDRICH RESOURCES BHD 0.030 -14.29 30.0 0.00 33.4 FITTERS DIVERSIFIED BHD 0.035 -12.50 35.3 -50.00 81.9 MTOUCHE TECHNOLOGY BHD 0.040 -11.11 975.0 -20.00 37.1 MERIDIAN BHD 0.085 -10.53 191.6 -29.17 19.2 PMB TECHNOLOGY BHD 3.190 -9.38 2,507.7 -24.05 5,170.5 PAN MALAYSIA HOLDINGS BHD 0.050 -9.09 2,557.2 -28.57 46.4 OVERSEA ENTERPRISE BHD 0.055 -8.33 4.0 -30.53 124.7 KUALA LUMPUR KEPONG BHD 21.480 -7.89 2,000.1 -3.94 23,164.8 CLASSITA HOLDINGS BHD 0.065 -7.14 66415.3 -82.19 80.1 Data as compiled on Sept 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) RAPID SYNERGY BHD 20.000 -4.080 219.6 25.31 2,137.9 KUALA LUMPUR KEPONG BHD 21.480 -1.840 2,000.1 -3.94 23,164.8 PMB TECHNOLOGY BHD 3.190 -0.330 2,507.7 -24.05 5,170.5 SUNMOW HOLDINGS BHD 1.150 -0.250 1.0 27.78 269.0 IMASPRO CORP BHD 5.320 -0.220 622.6 -9.06 425.6 PETRONAS CHEMICALS GROUP BHD 7.270 -0.160 2,389.2 -15.47 58,160.0 GAMUDA BHD 4.400 -0.150 5,320.2 17.33 11,864.6 SIME DARBY PLANTATION BHD 4.450 -0.130 1,948.4 -4.30 30,774.9 APB RESOURCES BHD 2.150 -0.120 579.1 43.33 238.4 PANASONIC MANUFACTURING M 18.920 -0.120 9.1 -17.38 1,149.3 TRANSOCEAN HOLDINGS BHD 1.880 -0.110 5.0 -2.08 122.4 KESM INDUSTRIES BHD 7.250 -0.100 3.3 3.28 311.9 TIME DOTCOM BHD 5.300 -0.100 1,672.7 23.84 9,788.2 AJINOMOTO MALAYSIA BHD 15.580 -0.080 10.9 19.11 947.2 CHIN HIN GROUP BHD 4.120 -0.080 627.6 27.55 7,290.0 DUTCH LADY MILK INDUSTRIES BHD 22.300 -0.080 9.1 -26.26 1,427.2 QUALITY CONCRETE HOLDINGS BHD 1.040 -0.080 1.1 -21.21 60.3 RCE CAPITAL BHD 2.470 -0.080 523.0 46.15 1,810.1 GE-SHEN CORP BHD 1.270 -0.070 2,223.2 5.83 154.4 KLUANG RUBBER CO MALAYA BHD 3.810 -0.070 0.8 -3.79 236.9 Data as compiled on Sept 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) PETRONAS DAGANGAN BHD 23.160 0.500 874.600 1.4 23008.40 HEXTARTECHNOLOGIES SOLUTIONS 24.360 0.360 1.9 42.79 3133.9 APOLLO FOOD HOLDINGS BHD 5.450 0.310 484.7 41.19 436 UNITED PLANTATIONS BHD 17.300 0.240 846.4 15.25 7,175.8 IOI CORP BHD 3.990 0.230 8032.4 -1.48 24752.8 PPB GROUP BHD 16.000 0.200 442.7 -8.26 22761.6 MALAYSIAN PACIFIC INDUSTRIES BHD 27.160 0.160 63.3 -5.56 5,402.0 PETRONAS GAS BHD 17.120 0.160 531.3 0.00 33875.9 HAP SENG CONSOLIDATED BHD 4.270 0.150 5044.0 -33.28 10630.9 GENTING PLANTATIONS BHD 5.490 0.130 1716.9 -12.06 4925.60 BATU KAWAN BHD 20.300 0.120 7.4 -8.97 7985.60 HONG LEONG FINANCIAL GROUP BHD 17.880 0.120 134.8 -3.87 20477 UEM SUNRISE BHD 0.845 0.115 148878.700 231.4 4274.40 CYPARK RESOURCES BHD 0.915 0.105 55249.9 94.68 718 ITMAX SYSTEM BHD 1.52 0.100 9188 7.04 1562.9 KOTRA INDUSTRIES BHD 5.410 0.090 9.2 -18.03 802.4 AEON CREDIT SERVICE M BHD 11.400 0.080 175.2 -9.38 2,910.5 TENAGA NASIONAL BHD 10.140 0.080 6913.7 5.30 58,683.5 YTL POWER INTERNATIONAL BHD 2.160 0.080 35915.6 202.10 17500.70 PJBUMI BHD 0.955 0.075 2122.4 6.11 78.3 Data as compiled on Sept 18, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 34,618.24 -288.87 -0.83 S&P 500 * 4,450.32 -54.78 -1.22 NASDAQ 100 * 15,202.40 -271.49 -1.75 FTSE 100 * 7,711.38 -21.90 -0.28 AUSTRALIA 7,230.37 -48.66 -0.67 CHINA 3,125.93 8.19 0.26 HONG KONG 17,930.55 -252.34 -1.39 INDIA 67,596.84 -241.79 -0.36 INDONESIA 6,936.08 -46.71 -0.67 JAPAN 33,533.09 364.99 1.10 KOREA 2,574.72 -26.56 -1.02 PHILIPPINES 6,124.57 -1.77 -0.03 SINGAPORE 3,263.39 -17.30 -0.53 TAIWAN 16,698.24 -222.68 -1.32 THAILAND 1,527.57 -14.46 -0.94 VIETNAM 1,211.81 -15.55 -1.27 Data as compiled on Sept 18, 2023 Source: Bloomberg CPO RM 3,777.00 16.00 OIL US$ 93.31 1.43 RM/USD 4.6838 RM/SGD 3.4411 RM/AUD 3.0108 RM/GBP 5.8425 RM/EUR 5.0250 * Based on previous day’s closing