OP26 / OPTIONS / MALAYSIA september 18, 2023 J12 Phantom x Chiang Rai, Thailand Smaller and not as frenetic a tourist destination as its northern sister city of Chiang Mai, Chiang Rai, just 150km away, is renowned for its quieter pace, where cultural bursts often comprising temple visits (this is where you would find the famous and famously-ornate Wat Rong Khun or White Temple) are tempered by invigorating dips in waterfalls, treks through green jungles or tea plantations or relaxing soaks in natural hot springs. Its proximity to the Golden Triangle, the mountainous point populated by hill tribes and where the borders of Thailand, Myanmar and Laos meet, at the confluence of the Ruak and Mekong Rivers, is one of the main draws for visitors as well. Life is all about contrasts. So, to offset the milky brilliance of Wat Rong Khun, opt for the midnight-hued 38MM J12 Phantom. Although its name alludes to an otherworldly quality and a spectral-like gift to hide under a cloak of mystery, the J12 Phantom, crafted from highly-resistant black ceramic and steel, has a hardy and palpable presence you will not be able to miss – or ignore. CEOMorningBrief TUESDAY, SEPTEMBER 26, 2023 ISSUE 642/2023 theedgemalaysia.com STOCKS FLASH RECESSION WARNING AS TROUBLE SPREADS TO INDUSTRIALS p16 HOME: Puncak Niaga discontinues RM14 bil suit against Selangor govt after six years p5 SAM Engineering makes cash call to fund RM203 mil acquisition of aircraft parts maker from major shareholder p6 Higher costs, forex loss drag Astro’s 2Q p8 WORLD: Evergrande crisis worsens as defaults pile up, ex-CEO detained p19 Amazon steps up AI race with up to US$4 bil deal to invest in Anthropic p20 Report on Page 4. Fahmi: All MNOs will have equal stakes in DNB for 5G network VECTEEZY.COM Chanel J12: Your Global Timepiece Companion SPNB sues ex-CEO, contractors for alleged fraud, seeks over RM141 mil in damages Report on Page 3.
TUESDAY SEPTEMBER 26, 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] Malaysia seeking annulment of US$14.9 bil final award by Spanish arbitrator in Sulu case KUALA LUMPUR (Sept 25): Malaysia is in the process of obtaining an annulment of the purported final award of US$14.9 billion (RM62.59 billion) issued by a Spanish arbitrator, Dr Gonzalo Stampa in the case brought by the purported heirs of the Sulu Sultan, says Datuk Seri Azalina Othman Said. Minister in the Prime Minister’s Department (Law and Institutional Reform) said with this annulment, the government’s long standing battle against the Sulu claims will come to an end as the basis of the claims would cease to exist. “In the Sulu fraud, the purported heirs to the Sultan of Sulu have attempted to extort Malaysia of US$14.9 billion that is approximately RM62.59 billion, which is bankrolled by a third party litigation funder, Therium. “Malaysia has spent a lot of time, effort and resources to defend our nation from the frivolous claims in the Sulu fraud in Spain, France, Luxembourg and the Netherlands. Despite this predicament, Malaysia stressed that what we are experiencing in the Sulu fraud is not unique to Malaysia alone. “Instead, it calls for a review of the conduct of arbitrators and for oversight of third party litigation funders, including exploring transparency and disclosure obligations by the relevant parties,” she said in her keynote address at the London International Arbitration Colloquium 2023: State Sovereignty and Immunity in Commercial Arbitration at the International Dispute Resolution Centre (IDRC), in London on Monday. Azalina also stressed that, Malaysia’s journey in battling the Sulu fraud has not been easy as it has been a case inherited from the past government. “We did not have the opportunity to address this case when it began. If the Unity Government of today had that opportunity, we would have done things very differently. “On the bright side, the many lessons Bernama we have learned from this debacle is why we are here today to come together and work on the weak links in the arbitration process and third party litigation funding after hosting two successful international colloquiums in Malaysia on May 9, 2023 and July 4, 2023. According to Azalina, as a result of the Unity Government’s relentless actions, Malaysia have obtained landmark victories in Paris and The Hague and other positive developments in the ongoing proceedings in the Sulu fraud. “These achievements were made possible through the joint and concerted efforts of the relevant Government Ministries and agencies under Prime Minister Datuk Seri Anwar Ibrahim who helmed efforts in international relations and diplomacy through fostering joint collaboration to address best practices in arbitration and third party litigation funding,” she said. Explaining why the government of Malaysia was initiating these ongoing dialogues with experts in the arbitration industry from all over the world, Azalina said it is to shed light on the precise arbitration practices, according to the rules of law, and to share Malaysia’s insight with the international arbitration community on the factual narrative of the claims by the purported heirs of the Sultan of Sulu against Malaysia. “This particular series today is the result of the collective effort by Malaysia to bring together the international arbitration community for the betterment of the arbitration system by sharing Malaysia’s hard-learned lessons from the Sulu fraud,” she said adding that the Malaysia, from the start, has encouraged and supported arbitration as a preferred dispute resolution. “We have the Asian International Arbitration Centre (AIAC), a reputable global hub for dispute resolution, located in the heart of Kuala Lumpur. I am delighted to share that just last Thursday (Sept 21), the AIAC signed a memorandum of understanding with SOAS Arbitration and Dispute Resolution Centre, University of London (SADRC) to foster teaching and research activities related to alternative dispute resolution in alignment with international best practices. “Our experience of the Sulu fraud has shown us that the sanctity of the arbitration process must always be upheld and we therefore firmly oppose any abuse of the arbitration process including forum shopping,” she said. HOME Our experience of the Sulu fraud has shown us that the sanctity of the arbitration process must always be upheld and we therefore firmly oppose any abuse of the arbitration process including forum shopping.” CONTINUES ON PAGE 3
TUESDAY SEPTEMBER 26, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Sept 26): SPNB Aspirasi Sdn Bhd (SPNB Aspirasi), a wholly owned unit of national housing development company Syarikat Perumahan Negara Bhd (SPNB), has brought SPNB’s former CEO Datuk Ahmad Azizi Ali to court, alongside property developer Tunas Manja Development & Construction Sdn Bhd (TMDC) and 10 others on allegations of defrauding the government-owned entity. The 12 parties were alleged to have conducted a series of conspiracies to defraud SPNB Aspirasi in relation to affordable housing projects involving 469 terrace units in Kuantan, Pahang between 2014 and 2019, according to court documents sighted by The Edge. SPNB Aspirasi claimed to have been defrauded to ink a development agreement valued at RM108 million in 2015 with a Tunas Manja Development & Construction (KL) Sdn Bhd (TMDC (KL)), which was falsely portrayed to be a subsidiary of TMDC through fake documents which Ahri and Azizi approved. According to the court documents, SPNB Aspirasi is seeking damages of at least RM141 million in land costs and loss of commercial opportunities, among other reliefs. Aside from Azizi, TMDC and TMDC (KL), SPNB Aspirasi also named its former CEO Hisham Ahmad as defendant. Other parties among the 12 are TMDC’s owners Datuk Chin Yoke Choon, Datuk Chin Yoke Kan and Datuk Chin Tham Chui @ Chan Ching Swee; TMDC (KL)’s owners Rusli Ismail and Norhasina Muhammad Hakim, as well as its lawyer Datuk Leong Yeng Kit; and Akitek Akiprima Sdn Bhd and its owner Datuk Cheah Kah Lip. In the suit, the plaintiff alleged that Azizi and SPNB’s late chairman Datuk Ahri Hashim caused SPNB Aspirasi to enter a lopsided supplementary development agreeBY ADAM AZIZ theedgemalaysia.com SPNB sues ex-CEO, contractors for alleged fraud, seeks over RM141 mil in damages Also present were the High Commissioner of Malaysia to the UK Datuk Zakri Jaafar, solicitor general of the Attorney-General’s Chambers of Malaysia Datuk Almalena Sharmila Johan and AIAC’s director Datuk Sundra Rajoo. On June 6, the Paris Court of Appeal upheld Malaysia’s challenge against the partial award rendered on May 25, 2020, by Stampa in the case filed by the eight individuals. FROM PAGE 3 Stampa had issued a final award of US$14.9 billion (RM62.59 billion) against Malaysia, and Malaysia had used all legal remedies to annul the award given by Stampa to the claimants in courts in Spain, France, Luxembourg, and the Netherlands. Malaysia scored another win when The Hague Court of Appeal on June 27, dismissed the Sulu group’s application to recognise and enforce the final award in the country. In their efforts to enforce the final award, the Sulu group had reportedly attempted to seize the assets of Malaysian petroleum company, Petronas in Luxembourg and the Netherlands as well as targeted Malaysian diplomatic assets in France (including the embassy). In 2019, the group was reported to have taken legal action in the Spanish Court to seek compensation for land in Sabah, which was allegedly leased by their ancestors to a British trading company in 1878. ment with TMDC (KL) in 2019 that contained terms favouring the latter. Among the terms, TMDC (KL) was entitled to terminate the development agreement in the event of a default by SPNB Aspirasi, and to claim damages equivalent to the entire loss of profits from the project. Akitek Akiprima — the project’s architecture firm — was said to have appointed four consultants without SPNB Aspirasi’s approval, and later approved false claims from TMDC (KL) against SPNB Aspirasi, which triggered the event of default. The implication, according to SPNB Aspirasi, was that Azizi and Ahri, through the supplementary agreement, had dishonestly assisted TMDC (KL) to terminate the agreements in order for TMDC (KL) to keep the land’s costs of RM33 million, and to submit excessive claims of loss of profits against SPNB Aspirasi. An arbitration to resolve the dispute between the parties subsequently concluded with SPNB Aspirasi ordered to pay a total of RM26.17 million to TMDC (KL). Prior to that, SPNB Aspirasi had already paid TMDC (KL) RM66.3 million (including the RM33 million land costs), under the 2015 development agreement. It should be noted that TMDC (KL) filed a winding-up petition against SPNB Aspirasi in May this year following the non-payment of the arbitration award. The petition is scheduled to be heard on Nov 22, according to a report by The Edge weekly. Meanwhile, according to SPNB Aspirasi’s court documents, the allegations came to light after SPNB’s new chairman Datuk Husam Musa, who was appointed on March 22 this year, instructed an internal forensic investigation, which allegedly found that Ahri and Azizi, together with the other defendants, had conspired and acted in concert to defraud SPNB Aspirasi. SPNB Aspirasi insisted that all the agreements are now “void and invalid ab initio (from the beginning)” and must be set aside by the court, claiming they were “instruments of fraud” used by the defendants to defraud the government-owned entity. It also claimed that Ahri and Azizi had breached their fiduciary and statutory duties to the company. It also alleged Hisham of breach of duty, which ultimately affected the company’s interests, saying he had either purposely or carelessly conspired with the defendants and caused SPNB Aspirasi to issue a letter of intent to TMDC for the project. The writ of summons was filed for the plaintiff by law firm Rajesh, Chew & Ho in the Kuala Lumpur High Court on Sept 24, 2023. It is understood that SPNB Aspirasi is filing another suit against Azizi, Akitek Akiprima, property developer Wiradani Development Sdn Bhd and three others for allegedly conspiring to defraud the company by similarly making use of false claims and a lopsided supplementary agreement, in a separate housing project.
TUESDAY SEPTEMBER 26, 2023 4 THEEDGE CEO MORNING BRIEF HOME Malaysia to expand collaboration on local currency settlement with high-trade-value countries — Sim Fahmi: All MNOs will have equal stakes in DNB for 5G network BY ANIS HAZIM theedgemalaysia.com Bernama KUALA LUMPUR (Sept 25): Communications and Digital Minister Fahmi Fadzil said all mobile network operators (MNOs) who are participating in Malaysia’s 5G network will hold equal stakes in the government-owned 5G network infrastructure outfit Digital Nasional Bhd (DNB). “As far as I’m aware, yes [all the MNOs will have equal stakes in DNB],” Fahmi told reporters after officiating the Ericsson Imagine Live Malaysia 2023 here on Monday (Sept 25) that showcased advanced 5G use cases and technology innovations. All the mobile MNOs are currently finalising their new share subscription agreements (SSAs) with DNB and that they are expected to be concluded “very soon”, he added. Fahmi previously announced in July that all five MNOs — CelcomDigi Bhd, Maxis Bhd, Telekom Malaysia Bhd (TM), U Mobile Sdn Bhd and YTL Communications Sdn Bhd — would take up equity stakes in DNB to support the country’s 5G network development. At the time, he did not share what the new equity structure would be like. Last year, four of the MNOs — Celcom Axiata Bhd and Digi Telecommunications Sdn Bhd (the yet-to-be-merged entities of CelcomDigi), together with TM and YTL Communications — signed conditional SSAs with DNB to collectively take up a 65% equity stake in the state-owned network, while Maxis and U Mobile opted out. Under the SSAs then, the government would retain its 35% stake and a golden share that grants it various rights and privileges that cover areas such as the ownership, sale and transfer of the shares owned by the government. At the time, Celcom and Digi were to take up a 12.5% stake each (in view of their impending merger at the time), while YTL Communications and TM would each take up a 20% stake. It was also agreed at the time that no single MNO could hold more than a 20% shareholding in DNB, and in the event of a merger, the merged entity could not hold more than a 25% stake in DNB. The MNOs, however, subsequently pulled out from the SSAs in May this year, following the government’s announcement that it would permit the rollout of a second 5G network in the country from 2024. “There are certain amounts that have been agreed, and I foresee that once [the new SSAs] have been done, we can expedite and we can roll out [5G network] even faster. “I hope, within a short period of time, the MNOs will come together and sign [the new SSAs] and then we can likely complete the 80% [of 5G network] coverage of populated areas (CoPA) by year end,” Fahmi said on Monday. According to him, the 5G network CoPA in Malaysia has reached 68.8% as of Aug 31, and is on track to achieve the 80% target by the end of this year or early 2024, before transitioning to a dual network model, with the introduction of a second 5G network through a new entity. Earlier, Fahmi also said the new chief executive officer of DNB is expected to be announced after the SSA is finalised, Bernama reported. He said Treasury secretary general Datuk Johan Mahmood Merican and Communications and Digital Ministry secretary general Datuk Mohamad Fauzi Md Isa, who co-chaired the 5G task force meeting, will oversee the final aspects of the appointment before the SSAs are executed. The position has been vacant since March this year after Augustus Ralph Marshall stepped down from it on the expiry of his two-year contract. Read also: New DNB CEO to be announced after share subscription agreement inked — Fahmi KUALA LUMPUR (Sept 25): The government and Bank Negara Malaysia (BNM) will continue to expand the Local Currency Settlement Framework (LCSF) cooperation with other countries, especially nations that have a high bilateral trade value with Malaysia. Deputy Minister of Finance II Steven Sim Chee Keong said that although the government takes proactive steps to encourage local currency settlement by providing policy flexibility, the choice of using local currency for cross-border settlement is subject to the needs and decisions of private businesses. “Like other countries involved in the global supply chain dominated by multinational companies, the US currency is still the main choice for international private companies for the settlement of international trade transactions due to various factors. “Among them is that the greenback is accepted globally and has deep market liquidity and cost-effectiveness. This contributes to the current dependence of settlements in the US dollar of 82.2% of the total amount of trade settlements as at August 2023,” he said when winding up the Dewan Negara special meeting to debate on the motion of the 12th Malaysia Plan (12MP) Mid-Term Review (MTR) on Monday. Sim also said that among Asean countries, BNM is working with the Bank of Thailand and Bank Indonesia to encourage the use of local currency through LCSF. The LCSF collaboration established with Thailand and Indonesia is to increase the access of Malaysian importers and exporters to Thai baht and Indonesian rupiah. Sim said that overall, bilateral local currency settlement between Malaysia, Thailand and Indonesia has shown an increase from 12.8% in 2016 to 19.6% as at August 2023 for Thailand. Meanwhile, Indonesia showed an increase of 12.5% in 2017 to 16.7% as at August 2023 since the establishment of the LCSF. In addition, he said BNM has also increased the use of regional currencies through collaboration with the People’s Bank of China over the past decade. “Among the initiatives to facilitate the settlement of international trade transactions in renminbi are the bilateral currency swap arrangement agreement and the Qualifying Foreign Institutional Investors (QFII) scheme (2009), direct renminbi-ringgit currency transactions (2010), Cross Border Collateral Arrangement (CBCA) and Renminbi Liquidity Facility (RLF) (2013). “The appointment of Bank of China (Malaysia) Ltd as a renminbi clearing bank since 2015 also facilitates the access of Malaysian financial institutions into the Chinese financial market,” he said.
TUESDAY SEPTEMBER 26, 2023 5 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Sept 25): The government is not disputing the goods and services tax (GST), either in terms of its strengths or weaknesses, but rather the timing to implement it, said Deputy Minister of Finance II Steven Sim Chee Keong. He said the government’s view is that the country is still in the recovery phase post-pandemic and is facing various global economic challenges due to geopolitical unrest, so in this less-than-encouraging economic situation, it is still not ready to implement the GST. “It is not a discussion about the strength or weakness of the GST taxation system but the appropriateness of it, we have to do the right thing at the right time. “If you do the right thing but at the wrong time, it will put a burden on the “So in this aspect, the government currently has no decision to implement a carbon tax, but the Ministry of Finance is conducting a study on the feasibility of a carbon tax as one of the carbon pricing instruments to support the country’s aspirations in achieving a reduction in the intensity of greenhouse gas emissions (GHG) as announced in the 12th Malaysia Plan,” he said. The study also includes a benchmarking process by identifying the best practices that have been implemented in developed countries regarding the implementation of the carbon tax, he added. Not the right time to bring back GST — Steven Sim KUALA LUMPUR (Sept 25): Puncak Niaga Holdings Bhd has discontinued its RM14 billion suit against the Selangor state government for what it had alleged was a forced takeover of the state’s water industry back in March 2017. The suit, first filed six years ago, followed Selangor’s long-delayed water restructuring exercise after state-owned Kumpulan Darul Ehsan Bhd took over PNSB Water Sdn Bhd and a 70% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) for RM1.55 billion cash from Puncak Niaga. At the time, Puncak Niaga sought the cost of difference between the RM1.55 billion final price tag and its claim of the two companies’ value of RM2.08-2.35 billion. It also sought loss of business opportunities amounting to RM13.496 billion, plus interest. In a filing on Monday, Puncak Niaga said it has discontinued the claims at the Shah Alam High Court with no order as to costs and without liberty to file afresh. “Hence, the Shah Alam High Court had struck off the case,” it said. The discontinuation was made after “careful consideration” of the fact that the six-year claim has yet to proceed to trial in court, it said. Recall that the suit was struck out by the Shah Alam High Court in February 2018, but the Court of Appeal reinstated the case in February 2021. Meanwhile, Puncak Niaga added that its decision was also “due to evolving change in the challenging business environments regulating Puncak Niaga” where its operations are entirely in Malaysia, it added. It is also seeking to avoid incurring more resources and costs to pursue the matter in court, it said. Aside from the Selangor state government, Puncak Niaga had also named two former Selangor MBs (menteri besar) as defendants, namely the late Tan Sri Abdul Khalid Ibrahim and Datuk Seri Mohamed Azmin Ali, alleging them of abuse of power Puncak Niaga discontinues RM14 bil suit against Selangor govt after six years to cause the federal government to force the state’s water industry takeover. Abdul Khalid was Selangor MB from March 2008 to September 2014, while Mohamed Azmin took over the role until June 2018. The sale and purchase agreement (SPA) for the Syabas and PNSB deals were inked in 2015, although talks for the takeover were initiated earlier during Abdul Khalid’s tenure as MB. When the case was reinstated by the Court of Appeal in 2021, Abdul Khalid was reinstated as a defendant along with the Selangor state government, while Mohamed Azmin was not. Puncak Niaga’s water and wastewater segment had been loss-making building up to the disposal of Syabas and PNSB in 2017. After its full exit from the water industry by 2018, Puncak Niaga’s key operating segments are now in the plantation, facilities management, and environmental engineering and construction which focuses on sewerage treatment plant projects. Shares of Puncak Niaga have doubled in the last three months, rising from 21 sen as of end-June to 42 sen at noon market break Monday. The counter rose five sen or 13.51% in Monday’s morning session. At 42 sen, the counter has a market capitalisation of RM188.7 million. BY ADAM AZIZ theedgemalaysia.com Bernama people,” he told Dewan Negara on Monday during the winding-up debate on the mid-term review of the 12th Malaysia Plan in Parliament. In addition, Sim said the government will hold a consultation with all stakeholders to look at improving the existing taxation system such as the sales tax and service tax. Meanwhile, regarding the introduction of a carbon tax, Sim said any introduction of a new tax needs to be carefully studied to take into account the impact of the tax not only on economic activities in general but also on people’s lives. Deputy Minister of Finance II Steven Sim Chee Keong said it is not a discussion about the strength or weakness of the GST taxation system but the appropriateness of it, we have to do the right thing at the right time. THE EDGE FILE PHOTO
tuesday september 26, 2023 6 The E dge C E O m o rning brief home Solarvest gets 12MWp solar installation works in Vietnam, explores wind energy project opportunities KUALA LUMPUR (Sept 25): Solarvest Holdings Bhd said it has secured rooftop solar installation projects totalling 12.8 megawatt peak (MWp) in Vietnam, with another 100MWp being tendered in the country. The group is also exploring wind energy projects to grab opportunities in the country, as well as to venture into battery storage to enhance the efficiency of its renewable energy projects there, it said in a statement on Monday. The announcement follows Solarvest’s recent wins in Singapore and Brunei totalling 4MWp of rooftop solar projects in July. It is also exploring works in Taiwan. The company’s overseas projects tender book currently stands at 620MWp, said executive director and group chief executive officer Davis Chong Chun Shiong. “We are delighted with the progress of our overseas expansion efforts, which is wellaligned with our five-year strategic roadmap. “The prospects in Vietnam’s clean energy market are highly promising, with its commitment to transition away from coal as outlined in the Vietnam Eight National Power Development Plan (PDP8),” Chong said. He said the Vietnamese government has introduced mechanisms to incentivise the development of rooftop solar power systems, with a vision of equipping half of the country’s office and residential buildings with rooftop solar panels by 2030. Under the PDP8 approved in May this year, Vietnam’s 2030 solar capacity target has been set at 12.84 gigawatt or 8.5% of total energy capacity target, according to reports. Among mechanisms proposed by Vietnam’s trade ministry in June include providing unlimited rooftop solar capacity, as well as tax exemptions. “As part of our strategic expansion plan, we are advancing across the value chain as a comprehensive clean energy developer for our overseas projects. “Given the focus on solar and wind energy within PDP8, where solar and wind energy are projected to account for approximately 34% and 27% respectively of the 500GW installed capacity, we are actively exploring wind energy projects alongside our ongoing solar ventures in Vietnam,” Chong said. At home, Solarvest is also developing three large scale solar (LSS) projects that it owns, with a total combined capacity of 50MW. Shares of Solarvest traded unchanged at RM1.33 at noon break on Monday, giving it a market capitalisation of RM888 million. The counter has risen by 55.56% this year. Read also: Bina Darulaman partners local solar energy firm for green energy venture KUALA LUMPUR (Sept 25): SAM Engineering & Equipment (M) Bhd is acquiring aircraft structure parts and precision engineering components manufacturer Aviatron (M) Sdn Bhd for US$43.4 million (approximately RM203.44 million) cash. The acquisition of Aviatron — the manufacturer of nacelle beams for Boeing and Airbus — is a related party transaction (RPT) as SAM Engineering is buying the stake from its major shareholder Singapore Aerospace Manufacturing Pte Ltd (SAMPL), which controls 62.49% of SAM Engineering. A unit of Temasek Holdings Pte Ltd, SAMPL disposed of 48.71 million SAM Engineering shares or 8.99% in the listed company in January this year, paring its stake from 71.5%. To fund the acquisition, SAM Engineering also proposed a renounceable onefor-four rights involving 135.397 million new shares at an indicative issue price of RM4.12, to raise RM557.84 million. Its counter closed at RM4.70 on Monday. Funding for the Aviatron acquisition will take up 36.47% of the rights issue proceeds. SAM Engineering will then use RM200.5 million to repay advances from SAMPL (35.94%) and RM149.9 million to repay bank borrowings (26.87%), with RM4 million left to defray expenses relating to the proposals. At end-June, SAM Engineering had cash and bank balances of RM30.16 million, against non-current borrowings of RM80.28 million and current borrowings of RM426.82 million. Aviatron, according to SAM Engineering, is the sole contract manufacturer of nacelle beams for Airbus 220, Airbus 350 and Boeing 787 aircraft for its major customer — one of the world’s largest supplier of aerospace and defence products. The acquisition is to capture Aviatron’s order book and in view of the expected recovery in the aerospace sector, SAM Engineering said, adding there are potential synergies to be had through the sharing of Aviatron’s manufacturing facilities. SAM Engineering currently has two business segments, namely aircraft engine SAM Engineering makes cash call to fund RM203 mil acquisition of aircraft parts maker from major shareholder casings, nacelle beams and aero structure products manufacturing, and the provision of equipment engineering and solutions for semiconductor, hard disk drive and related industries. The acquisition will raise its aerospace segment revenue in the financial year ended March 31, 2023 (FY2023) by 29.8% to RM430.72 million, it added. “The SAM Engineering Group’s management team is also currently providing corporate management and administrative services to Aviatron, while Aviatron’s management team is currently providing day-to-day manufacturing support on nacelle beams to the group. “In view that Aviatron is already using certain business support functions provided by the SAM Engineering Group, the proposed acquisition will facilitate the consolidation of these business support functions, merging of material and quality management systems, as well as eliminate related party transactions between Aviatron and the group which includes the rental of factory and provision of management services,” it said. SAM Engineering expects the exercises to be completed by 1Q2024, pending necessary approvals including from non-interested shareholders at an extraordinary general meeting to be held later. At RM4.70, SAM Engineering has a market capitalisation of RM2.55 billion. Year to date, the counter has retreated 24 sen or 4.86%. by Adam Aziz theedgemalaysia.com by Adam Aziz theedgemalaysia.com
TUESDAY SEPTEMBER 26, 2023 7 THEEDGE CEO MORNING BRIEF
tuesday september 26, 2023 8 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 25): Dialog Group Bhd, via its wholly owned indirect subsidiary Dialog Malic Sdn Bhd, will build, own and operate a RM374.8 million speciality chemical plant producing malic acid in Gebeng, Kuantan, Pahang. The plant, located within the integrated chemical site operated by BASF Petronas Chemicals Sdn Bhd, marks the group’s first foray into production of specialty chemical. According to its Bursa Malaysia filing on Monday, malic acid is a specialty chemical that is mainly used as a food additive in the food and beverage (F&B) industry, and has a steady market demand. Dialog said it would undertake the engineering, procurement, construction and commissioning (EPCC) of the malic acid plant, with a production capacity of approximately 12,000 metric tonnes per annum and an investment value of approximately US$80 million. “Dialog’s proposed development of its malic acid plant in Malaysia will not only support the growing demand in the Southeast Asian region but also tap into business opportunities created by the increasing demand for malic acid worldwide. Dialog ventures into specialty chemical with RM374.8 mil flagship plant in Gebeng KUALA LUMPUR (Sept 25): Higher operating costs and unfavourable foreign exchange loss (forex) dragged Astro Malaysia Holdings Bhd’s net profit down by 75.98% in the second quarter ended July 31, 2023 (2QFY2024) to RM23.65 million, from RM98.47 million a year earlier. This came in tandem with a 5.56% decline in quarterly revenue of RM869.82 million, as compared to RM921.12 million previously, due to a decrease in subscription revenue and merchandise sales, according to the pay-TV services provider’s bourse filing. Earnings per share fell to 0.45 sen versus 1.89 sen previously. The group did not declare any dividend for the quarter under review. In the quarter, Astro saw finance costs swell 61.44% to RM74.1 million from RM45.9 million in 2QFY2023, due to unfavourable unrealised forex loss arising from unhedged lease liabilities. Meanwhile, the group noted that its bottom line was also burdened by higher staff-related, broadband and content costs, marketing and distribution expenses, and license, copyright and royalty fees, offset by lower merchandise costs and impairment of receivables, as a percentage of revenue. Touching on the lack of dividend being declared for the quarter, Astro said this move is in line with its new dividend policy to distribute dividends annually from its consolidated profit after tax and minority interest (Patami). Astro had announced a dividend of 0.25 sen per share for 1QFY2024. It paid dividends of 2.25 sen for 1HFY2023. The dividend policy revision is effective immediately, it said, aimed towards balancing the need to reinvest in the growth of adjacent businesses, while also preserving liquidity to strengthen its balance sheet and pay shareholders dividends. “Dividends will be paid depending on Higher costs, forex loss drag Astro’s 2Q by Izzul Ikram theedgemalaysia.com by Sulhi Khalid theedgemalaysia.com overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors. We will continue to review the dividend policy,” it added. For the six-month period ended July 31, 2023 (6MFY2024), Astro’s net profit stood at RM39.55 million, down 80.08% versus the RM198.48 million it registered in the same period last year. Cumulative revenue was 6.49% lower at RM1.76 billion, as compared to RM1.88 billion a year ago. On its prospects, Astro said it will continue managing costs as prolonged macroeconomic headwinds are seen to persist, including the strong US dollar environment, the shift in global industry, and ongoing cost-of-living pressures. That said, the group is committed to investing in content production with over RM300 million earmarked in FY2024, according to Astro group chief executive officer Euan Smith. “Our focus is also on scaling sooka — our freemium streaming service for sports and vernacular enthusiasts, available on both mobile and the big screen through its smart TV app. “Our internet service Astro Fibre continues to see encouraging traction, especially as broadband content bundles, available to both residential and enterprise customers,” he added. Shares in Astro closed half a sen or 0.97% lower at 51 sen on Monday, giving the group a market capitalisation of RM2.64 billion. The counter has retreated by 21% this year. Astro Malaysia Holdings Bhd’s quarterly earnings (RM mil) 0 55 110 800 900 1000 1100 Net profit Revenue FY2023 FY2024 *Financial year ends on Jan 31 Source: Bursa Malaysia 1Q 2Q 3Q 4Q 1Q 2Q 100.02 98.47 23.65 5.80 54.75 15.90 869.82 962.09 921.12 926.18990.67 891.13 “This malic acid plant in Kuantan will supply the required malic acid to major customers and distributors in Malaysia and overseas. The feedstock for the production of the malic acid will be supplied by local suppliers,” it said. The project will also spur socio-economic development of the East Coast Economic Region (ECER) by creating job opportunities for locals during the construction and operations stage, the group added. The EPCC of the project is expected to be completed in the second quarter of 2026, and Dialog will fund its portion of the project’s investment and working capital from internally-generated funds and/ or bank borrowings, including proceeds from sukuk issuance. Shares in Dialog closed one sen or 0.46% lower to RM2.16 on Monday, giving it a market capitalisation of RM12.20 billion.
tuesday september 26, 2023 9 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 25): Bumi Armada Bhd announced that its wholly owned subsidiary Armada Akia BV has signed a production sharing contract (PSC) with the Ministry of Energy and Mineral Resources of Indonesia for exploration in the Tarakan Basin of the North Kalimantan province of Indonesia (Akia PSC). KUALA LUMPUR (Sept 25): Practice Note 17 (PN17) outfit KNM Group Bhd is to hold a court-convened creditors meeting in relation to its proposed scheme of arrangement (SOA) on Oct 12, days prior to an extraordinary general meeting (EGM) to decide on the fate of its board. “The board of directors of the company wishes to announce that the applicants will convene court-convened meetings on Oct 12, 2023, pursuant to the ad interim [restraining] order (RO) and Section 366 of the Companies Act 2016 for the purpose of discussing and voting on the proposed SOA,” the financially-troubled oil and gas process equipment maker said in a filing on Monday. “Further development in relation to the RO and SOA will be announced in due course,” it added. Last week, the Kuala Lumpur High Court granted KNM an extension on its temporary RO pending the conclusion of its bid for an extension on its initial RO — which it filed back in August. The group was first granted a threemonth RO back in December last year in conjunction with leave (permission) to call a court-convened meeting with creditors for its proposed scheme of arrangement. It was able to extend the RO by a further five months to August, when it then KNM to hold creditors meeting on Oct 12, ahead of EGM on board takeover bid by Izzul Ikram theedgemalaysia.com in the same month filed the current application for another extension. Since then, a group of shareholders led by German businessman Andreas Heeschen filed a notice to remove all existing KNM directors, including its chairman Tunku Datuk Yaacob Khyra, who holds an indirect 9.44% stake in the group. According to the notice filed in early September, the Heeschen-fronted group intends to replace the incumbent board with its own nominees, which include Tunku Kamariah Aminah Maimunah lskandariah Sultan Iskandar, the eldest sister of the Sultan of Johor, as well as former KNM executive director Flavio Porro. It was previously reported that KNM CEO and managing director Ravindrasingham Balasingham said that the group of shareholders’ move to replace the group’s board will thwart the progress achieved thus far by the incumbent board of directors, which took over last November, in resolving KNM’s debt issues. As of end-June this year, KNM’s borrowings stood at RM1.18 billion, down from RM1.26 billion a year earlier. The group had been lossmaking for eight consecutive quarters. Negative reserves stood at RM1.21 billion, up from RM1.16 billion the year before. Shares in KNM ended half a sen or 4% lower at 12 sen, giving the group a market capitalisation of RM466.84 million. In a local bourse filing on Monday, the oil and gas service provider said its co-bidder for the project, Pexco Tarakan NV, has also entered into the exploration agreement. According to the group, the production sharing contract covers an area of 8,394 square kilometres and contains the bumiarmada.com Bumi Armada’s unit signs production sharing contract for exploration in Kalimantan, Indonesia by Sulhi Khalid theedgemalaysia.com Aster and Tulip oil and gas discoveries. “The Tulip discovery has an estimated recoverable resource of 860 BCF (billion cubic feet) of gas and 60 MMboe (million barrels of oil equivalent) of oil and condensate. Plans are to acquire new 3D seismic over the Tulip discovery to evaluate the potential for a fast-track development. “The water depth at the Tulip discovery is 800m (metres) and Bumi Armada would provide and operate a floating, production, storage and operation (FPSO), and a floating liquid natural gas (FLNG) or gas pipeline for the development. “This leverages Bumi Armada’s core expertise of providing and operating floating production systems,” it said. The Pexco group is an independent upstream exploration and production group of companies, Bumi Armada said. The group currently operates two production sharing contracts in Indonesia. Shares in Bumi Armada closed 1.5 sen or 2.65% lower to 55 sen on Monday, giving it a market capitalisation of RM4.78 billion.
tuesday september 26, 2023 10 The E dge C E O m o rning brief home HLIB: KLCI may revisit 1,465 points in 3Q following PM’s successful US trip, potential window dressing KUALA LUMPUR (Sept 25): The reduction in broadband internet price, following the new Mandatory Standard on Access Pricing (MSAP) after September 2023, is not expected to significantly impact Telekom Malaysia Bhd (TM)’s upcoming third quarter results, according to PublicInvest Research. The research house said while the downside risks to TM’s earnings for the fiscal years 2023-2025 once the MSAP is put into effect has been previously highlighted, the telco could make provision for downward repricing of wholesale rates. Additionally, for the third quarter ending Sept 30, 2023 (3QFY2023), TM One’s performance may remain weaker due to the price reduction in large contracts, mitigated by the recognition of tax losses, which will be set-off against profits, the research house said PublicInvest said the impact on TM’s earnings will be softened by tax credits recognised in the fiscal years 2023-2024, as well as increased contributions from TM Global. “We are forecasting FY2023 earnings to fall by circa 4%, while FY2024 will remain flat. Nevertheless, we do not rule further downside risk, should the decline in wholesale rates be larger-than-expected.,” it said in a note on Monday. PublicInvest’s outperform call with a target price of RM6.20 on TM is based on its leading position as Malaysia’s network infrastructure provider, which positions the company to benefit from the deployment of the 5G network and the growing demand for hyperscale data centres. These factors, coupled with TM’s strategies for cost optimisation and the diversiPublicInvest: TM braces for lower broadband prices, minimal impact on 3Q results fication of its service offerings, are expected to mitigate the impact of lower wholesale prices on the company’s earnings. A recap on the MSAP and its implications The Malaysian Communications and Digital Minister Fahmi Fadzil had previously announced that the Malaysian Communications and Multimedia Commission (MCMC) is set to finalise discussions with wholesale broadband service providers. The MSAP, which was released by the MCMC in February 2023, establishes the wholesale rates for various telecommunication services, including broadband access prices. However, the MSAP can only take effect once TM concludes its wholesale agreements with access seekers. Therefore, PublicInvest said the actual impact on TM’s earnings will depend on the specific agreements reached with telecommunication companies leasing TM’s infrastructure. These agreements are based on commercial contracts that may differ from the levels set by the MSAP. “In our opinion, TM could post lower profit in the early stage of implementation but earnings could rebound due to various cost optimisation measures in place,” it added. Additionally, continued growth in data centre demand and the offering of value-added services are expected to offset the impact of lower wholesale prices, the research house said. by Isabelle Francis theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com Telekom Malaysia Bhd 0 5 10 15 20 25 Sept 2, 2022 Sept 25, 2023 4 5 6 Vol (mil) RM RM4.91 RM5.61 *As at 12.48pm, Sept 25, 2023 Source: Bloomberg Read also: Fahmi: TM may garner more customers with lower broadband prices, maintain earnings KUALA LUMPUR (Sept 25): The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to return to the 1,465-point level in the third quarter of 2023, thanks to potential window dressing activities during the period and Prime Minister Datuk Seri Anwar Ibrahim’s productive visit to the US, according to Hong Leong Investment Bank Research (HLIB Research). The benchmark index last flitted around that level in February. As of 12.30pm, the FBM KLCI experienced a minor decline of 7.30 points, settling at 1,442.93 from last Friday’s close of 1,450.23. The index opened at 1,449.01. In a research note on Monday, the research house said that despite the FBM KLCI tracking a downturn on Wall Street and facing technical challenges, it is expected to extend its sideways consolidation phase amid the current risk-off environment, with support levels at 1,420 to 1,440 points and resistance levels between 1,465 and 1,478 points. HLIB Research said investors should buy on dips to take advantage of a more promising 4Q2023, setting a year-end target of 1,530 points. Besides the window-dressing activities and the PM’s trip to the US, the recent conclusion of the six state elections is also expected to bring about an improvement in risk appetite, and a pick-up in merger and acquisition (M&A) activity. Additionally, the KLCI’s valuation currently stands at a modest 13 times the estimated earnings for 2023, compared to the 10-year historical average of 16.7 times. Malaysia’s commitment to long-term fiscal sustainability and competitiveness through initiatives such as the National Energy Transition Roadmap (NETR), National Investment and Industry Blueprint 2030 (NIMP 2030), 12th Malaysia PlanMid-Term Review (12MP MTR), and the development of Forest City’s special financial zone is expected to drive economic growth and attract investments. Furthermore, September has witnessed a resurgence in foreign net inflows for the third consecutive month, signaling renewed confidence from international investors in the Malaysian market. In addition to these positive indicators, China’s economy, a significant driver of regional growth, is exhibiting signs of a rebound following a series of stimulus measures aimed at reigniting its sluggish economy.
TUESDAY SEPTEMBER 26, 2023 11 THEEDGE CEO MORNING BRIEF Saturday, 7 october 2023 8.30aM — 1.00PM Mandarin oriental, Kuala luMPur The way forward retirement planning is no longer what it used to be. changing demographics and the new normal in the postpandemic economy are forcing a rethink and a shake-up. this is exacerbated by continued market volatility, black swans and rising cost of living. RetiRement Reimagined foRum 2023 FIRESIDE CHAT Datuk Wira Ismitz Matthew De Alwis Executive Director / Chief Executive Officer, Kenanga Investors Bhd Bryan Lin Chief Executive Officer, Subang Jaya Medical Centre Moderators: Kuek Ser Kwang Zhe Editor, Wealth, The Edge Malaysia Pathma Subramaniam Editor, Digital Edge, The Edge Malaysia The State of Retirement in Malaysia Datuk Seri Amir Hamzah Azizan Chief Executive Officer, Employees Provident Fund Are Malaysians Prepared for Retirement? Tan Sri Dr Noor Hisham Abdullah Former Director General, Ministry of Health of Malaysia Safeguarding Wealth Transfer and Distribution: A Holistic Approach to Retirement and Estate Planning Nor Fazlina Mohd Ghouse Chief Executive Officer, Maybank Trustees Bhd Partner Fully booked! Thank you For your supporT
tuesday september 26, 2023 12 The E dge C E O m o rning brief home news In brie f Anis Rizana is first woman appointed as Malaysian Customs DG PUTRAJAYA (Sept 25): Datuk Anis Rizana Mohd Zainudin@Mohd Zainuddin made history by becoming the first woman director-general (DG) of the Royal Malaysian Customs Department. Her appointment took effect on Monday (Sept 25), announced the Chief Secretary to the Government Tan Sri Mohd Zuki Ali in a statement on Monday. He said Anis Rizana, 54, formerly the Finance Ministry deputy secretary-general of Treasury (Investment), has extensive experience in various fields including investment, importexport, research and policy development, economics, management and finance. She was appointed to replace Datuk Zazuli Johan, who retired. “This appointment is the first for a female civil servant to assume the position of director general of Customs, Royal Malaysian Customs Department. “I believe that with her experience and credibility, Anis Rizana is able to lead an agency that is very important in collecting revenue for the government,” said Mohd Zuki. Anis Rizana has been with the Malaysian civil service for 29 years, with her first position being assistant secretary at the finance division of the Ministry of Finance in 1994. She holds a Bachelor’s Degree in Business Administration from Western Michigan University, US, and a Master’s Degree in Business Administration from Universiti Putra Malaysia. — Bernama MetMalaysia: Prolonged thunderstorms, strong winds forecast in northern states KUALA LUMPUR (Sept 25): Thunderstorms with heavy rain and strong winds are expected for a prolonged period in the northern states of the peninsula, including the waters of the affected states, according to the Malaysian Meteorological Department (MetMalaysia). Based on the weather forecast issued by MetMalaysia at 12.30pm on Monday, the situation is due to the concentration of wind in the north of the peninsula, which is expected to continue until Wednesday (Sept 27). The forecast is based on analysis of weather models. The public is advised to visit www.met.gov.my and all official MetMalaysia social media pages or download the myCuaca application for up-to-date and authentic information. — Bernama www.mof.gov.my the edge file photo TSH Resources to start trading on SGX via secondary listing on Sept 26 KUALA LUMPUR (Sept 25): TSH Resources Bhd will be admitted to the official list of the Singapore Exchange Securities Trading Limited (SGX-ST) on Sept 26, under the stock code “TSH”. Trading in the shares on the Main Board of the SGX-ST will commence on a “ready” basis with effect from 9.00 am (Singapore time) on the same day, according to a company filing. According to the eligibility-to-list on the Main Board of the SGX-ST (ETL), the latest price of TSH at market close on Monday was RM1.00 per share (approximately SG$0.2918 per share), the oil palm plantation company said. TSH opted for dual listing as it sees the exercise expanding and diversifying its shareholder base, and improving its trading liquidity. Additionally, TSH said the dual listing will strengthen its presence in Singapore, which may attract wider research coverage from research houses in the city-state and hence, attract greater attention from international investors and traders who invest in SGX, as well as generate higher visibility for TSH’s businesses and its subsidiaries. Shares of TSH closed unchanged at RM1 on Monday, valuing the group at RM1.38 billion. — by Priyatharisiny Vasu Senheng acquires Central Distribution Centre for RM75.8 mil to enhance omnichannel ops KUALA LUMPUR (Sept 25): Senheng New Retail Bhd is acquiring its currently leased Central Distribution Centre (CDC) for a purchase consideration of RM75.8 million to strengthen the group’s supply chain. Senheng’s wholly-owned subsidiary Senheng Electric (KL) Sdn Bhd, entered into a sale and purchase agreement with SDM Assets III Sdn Bhd (SDM), a wholly-owned subsidiary of Sime Darby Property MIT Development Sdn Bhd, to secure ownership of the CDC. The acquisition will result in significant annual gross rental savings of RM4.2 million for the group, Senheng said in a statement on Monday. The CDC which is located in Klang, Selangor, is the main distribution hub for Senheng, where products from suppliers are received, stored and subsequently distributed to regional hubs and customers in the central region of Peninsular Malaysia. To finance the RM75.8 million CDC acquisition, the group will procure bank borrowings of RM45.8 million and reallocate RM30 million from its Initial Public Offer (IPO) initially designated for its Territory Champion expansion strategy. The acquisition is expected to complete in the fourth quarter of 2023. — by Priyatharisiny Vasu NTPM 1Q net profit drops 84.7% as expenses jump KUALA LUMPUR (Sept 25): Paper products manufacturer NTPM Holdings Bhd reported an 84.7% decline in net profit for its first quarter ending July 31, 2023 (1QFY2024) to RM165,000 from RM1.08 million in the same period the previous year, despite slightly higher revenue, no thanks to higher interest, advertising and income tax expenses. Earnings per share dropped to one sen from 10 sen, its bourse filing showed. While quarterly revenue rose a marginal 3.1% to RM223.9 million from RM217.2 million — on improved contributions from both its tissue paper products segment and personal care products segment, primarily driven by higher average selling prices — the increase was offset by higher interest expenses, advertising costs and general inflationary pressure on administrative expenses, especially higher insurance premium. On prospects, NTPM anticipates a challenging and volatile business environment, given the Russia-Ukraine war and the uncertainty in foreign exchange rates, which may hinder economic growth and consumer confidence. Nevertheless, with the current stabilisation of raw material prices, including pulp, waste paper and other inputs, NTPM sees promising opportunities for both the its tissue paper products and personal care products segments. “Subject to reduced uncertainty regarding the US dollar exchange rate and unforeseen circumstances, the group aims to achieve improved performance in the coming quarters,” NTPM said. — by Choy Nyen Yiau
tuesday september 26, 2023 13 The E dge C E O m o rning brief home JOHOR BAHRU (Sept 25): A premises producing plastic-based materials in Taman Tan Sri Yaakob here is being investigated for purportedly not providing proper accommodation for 325 foreign workers in its factory. Human Resources Ministry (KSM) deputy director-general Mohd Asri Abdul Wahab said the company was found to only provide five accommodation spaces in the storage area for its finished products, with each accommodation housing approximately 65 workers. He said the special integrated enforcement operations involving various agencies, including the Social Security Organisation (Perkeso) and the Royal Malaysian Police (PDRM) at 2.30pm on Monday, also found that the manufacturer had flouted several basic rights of the workers since 2021. “Today we have opened an investigation paper and have taken statements from the workers as well as the employer to identify what rules the employer had violated, with each offence subject to a maximum compound of RM50,000. “The size of the accommodation space is only suitable to be used by six workers, with one bathroom. In fact, the employees were not provided with lockers to store their personal belongings including their passports,” he told reporters after leading a raid on the premises here. Mohd Asri said the company also did not provide beds for the workers, while Plastics manufacturer under probe for unfit accommodation for 325 foreigners PUTRAJAYA (Sept 25): The Election Commission (EC) has set Nov 4 as polling day for the Jepak state by-election in Sarawak. It also set Oct 21 for the nomination day, while early voting is on Oct 31. The dates were announced by EC deputy chairman Dr Azmi Sharom at a press conference called after a special meeting on the by-election at Menara SPR here on Monday. He said the campaigning period for the by-election was set for 14 days, starting after the declaration of the candidates on nomination day until 11.59pm on Nov 3. The Electoral Roll that will be used for the Jepak by-election is the one updated until Sept 15, 2023, which contains 22,804 voters consisting of 22,761 ordinary voters and 43 police personnel, he added. Azmi said the Jepak state by-election is expected to cost the government RM2 million. The by-election was called following the death of its incumbent, Datuk Talib Zulpilip, 72, on Sept 15 due to kidney complications. He was the Jepak Assemblyman for six terms since 1996. Jepak is in the Bintulu parliamentary constituency. Azmi said Balai Raya Kampung Jepak, Bintulu, will be used as the nomination centre and the official vote tallying centre for the Jepak by-election, and that the EC had appointed a returning officer, who will be assisted by three assistant returning officers, to oversee the by-election. The EC has also appointed a total of 446 officers to oversee the by-election process, he added. He said two election enforcement teams will be set up to monitor campaigning activities throughout the by-election and the members comprised representatives from the police and the local government authorities, as well as representatives of competing candidates. The Jepak state by-election will have 15 polling stations involving 46 polling streams, with one of the stations for early voting. EC: Jepak by-election on Nov 4 Voters are advised to check their voting information at https://mysprsemak.spr. gov.my, the MySPR Semak application or by calling the EC Hotline at 03-8892 7018/ 7218/ 7124, which will be opened starting Oct 16. Regarding the applications for postal voters, it is open from Monday and the closing date is Oct 18 for Category 1A (election officials, EC members/officers, police, military and media personnel), Oct 4 for Category 1B (Malaysian citizens who are abroad), and Oct 9 for Category 1C (agencies/organisations). “Applications for postal ballot for Category 1A, Category 1B and Category 1C should be done online,” said Azmi, who also advised potential candidates for the by-election to fill in the nomination form and do an initial check with the office of the returning officer or the Sarawak election office prior to nomination day. Azmi said applications are also opened to quarters, including government agencies and non-governmental organisations (NGOs), interested in becoming observers to see the process of the Jepak by-election. Election observers are allowed to observe the election process such as during nominations, campaigning, early voting and on polling day as well as vote counting and tallying. Applicants can visit the EC’s website at https://www.spr.gov.my/ for further information and to download the application form. The closing date to apply is Oct 9. Bernama Bernama the bathroom had no walls and was located next to the kitchen where the cooking was done. “The room used for workers to sleep was also in the kitchen area, where items such as onions and chilli are kept. The refrigerator was also in the room,” he said. He added that the raid was the result of complaints received from various sources. “Our raids are usually the result of intelligence conducted by our officers and members as well as from complaints by the foreign workers themselves via their respective embassies or non-governmental organisations (NGOs), especially those involved in human rights’ issues,” he said. He said enforcement action will be taken against the employer under the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446). Mohd Asri added that from January till now, KSM has opened a total of 326 investigation papers, with 187 of this number being issued compounds amounting to RM1.9 million. The Edge file photo
tuesday september 26, 2023 14 The E dge C E O m o rning brief home KUALA LUMPUR (Sept 25): Single mother Loh Siew Hong has withdrawn her application for leave to appeal a Court of Appeal (COA) decision allowing the Perlis Islamic Religious and Malay Customs Council (MAIPs) to intervene in her divorce proceedings, to focus on the appeal she filed for a judicial review instead. Loh’s counsel J Gunamalar confirmed the matter with The Edge when contacted, adding that the notice of discontinuance was Single mum Loh withdraws appeal against MAIPs in case related to custody PUTRAJAYA (Sept 25): The Court of Appeal on Monday (Sept 25) reimposed the ban on a 2013 publication titled “Gay is Okay! A Christian Perspective” that was ordered by the Home Ministry in 2020, after the High Court had on Feb 22, 2022 lifted the prohibition on the book. This follows a majority 2-1 decision that allowed the federal government and home minister’s appeal against the court decision. Judges Datuk Wong Kian Kheong and Datuk Azizah Nawawi, who led the panel, are the majority judges who re-imposed the ban, while Datuk M Gunalan is the dissenting judge. Wong, in his judgement, said Article 10(1)(a) of the Federal Constitution is different from the position of the Indian Constitution, which stipulated that the government can impose reasonable restrictions. However, he added that while the Malaysian Constitution stipulates that everyone has the right to freedom of speech and expression, it is subject to the interest of the security, public order or morality, among others. He said the High Court judge had erred in law, as the minister has the right to impose the ban on the book based on its possible adverse effect on morality and out of public interest, even though the book had been in circulation for seven years before being banned. Wong said based on the objective evaluation of the court, the contents of the book and its title give a general message that Christians do not prohibit homosexuality. He further added that the High Court judge had also erred in law by adopting the Universal Declaration of Human Rights, as the international document cannot bypass Article 10(1)(a) of the Malaysian Constitution. Wong said Section 7 of the Publication and Printing Presses Act 1984 (PPPA) shows the intention of the Malaysian Parliament to impose such restrictions on such publications if they were found to be against public order and morality. Appellate court bans gay book again after govt appeal by Hafiz Yatim theedgemalaysia.com by Tarani Palani theedgemalaysia.com The judge also noted that the book’s author Ngeo Boon Lin and publisher Chong Ton Sin did not challenge the constitutionality of Section 7 of PPPA, and it was wrong for the High Court judge to consider this. “The gazette of the ban also provided three reasons in instituting the ban where it stipulated that it may result in likelihood to affect public order and morality,” he said. Wong said under Section 7 of the PPPA, the Parliament had given the minister the power to impose the restrictions under Article 10(1)(a), and the minister has the right to make the decision based on public order and morality. Furthermore, the judge reasoned that 42 out of 226 pages of the book which allegedly give an alternative view on same sex relationship do not represent the Christian view as a whole. Wong added that it was reasonable for the minister to see the book as likely to prejudice public order, affect morality and public interests, despite the fact that it was published seven years ago. In reversing the decision, the majority ordered Ngeo and Chong to pay a total of RM15,000 costs to the government and the minister. filed at the apex court earlier on Monday. “Yes, we have withdrawn the leave to appeal at the Federal Court. Both parties have agreed on no costs (in the matter). “This is because the most important thing is the judicial review appeal, which is coming up on Oct 19. We are going to focus on that,” she said when contacted. The hearing of Loh’s leave (permission) application was scheduled to take place on Tuesday (Sept 26). Read the full story Read the full story The Edge filepix by Zahid Izzani Single mother Loh Siew Hong She filed the application in order for her to appeal the COA’s decision, issued earlier in February, that allowed the religious body’s appeal to intervene in Loh’s divorce proceedings, making the council a respondent in the matter and paving the way for them to vary the custody order given to Loh. With the appellate court’s decision, MAIPs’ appeal was sent back to the High Court to be heard in full. The matter will come up for hearing on Wednesday (Sept 27) before judge Hayatul Akmal Abdul Aziz. In civil cases, litigants must first obtain leave (permission) before they can proceed with appeals to the apex court. MAIPs filed its application in Loh’s case, which involves all three of her underage children who were converted to Islam by their father, Loh’s ex-husband, without her consent. In its application to vary the custody order, MAIPs is seeking, among others, supervised access to the children twice a week for guidance and basic religious education, and to take them to observe Islamic celebrations.
tuesday september 26, 2023 15 The E dge C E O m o rning brief is your company one of them? honouring Malaysia’s outstanding corporate performers TM Main Sponsor Official Car Supporting Sponsor
tuesday september 26, 2023 16 The E dge C E O m o rning brief world (Sept 25): US small-cap and industrial stocks are dropping, typically signals of a recession, but in a year where equities have already beaten expectations some investors are dismissing the moves as little more than noise — for now. The S&P 500 Industrials index peaked on Aug 1 and is down about 8% since then, teetering on a correction after several major US carriers cut their profit outlooks for the third quarter on a sudden jump in oil prices. The small-cap Russell 2000 Index has lost more than 11% from its July 31 closing high, roughly twice the decline in the S&P 500 Index over the same time. Steep drops in small-cap and industrial stocks typically occur when the economy is in a recession. There are other signs of trouble in the stock market. The S&P 500 Index is headed for its first quarterly loss in a year, just had its worst week since March 10, when Silicon Valley Bank collapsed, and has shed 2.8% since Wednesday, the day of the Federal Reserve’s policy announcement that featured the theme of “higher for longer” rates. In response, investors are pulling money from equity funds globally at the fastest pace since December, Bank of America Corp strategists say. That said, there is hope for stocks. Earnings season is coming, which may matter more than rates for stock prices now according to a model from Bloomberg Intelligence. Companies are expected to post profit declines of just 1.1% in the third quarter, followed by gains for at least the next year, according to Bloomberg Intelligence data. Plus the Federal Reserve this week said it’s forecasting stronger economic growth than it expected just a few months ago. “With earnings season only a few weeks away, we’re not seeing a lot of companies adjusting their earnings and revenue goals lower,” said Kim Forrest, founder and chief investment officer at Bokeh Capital Partners. “We don’t know when the recession is coming — eventually it will — but the largest US companies aren’t signalling an immediate threat.” To some investors, the recent drops are little more than a buying opportunity. Forecasters surveyed by Bloomberg are predicting that economic growth will slow through the middle of next year, then pick back up again. “It’s too soon to say the stock market is signalling a recession,” said Ed Clissold, chief US strategist at Ned Davis Research, whose firm has a year-end target of 4,500 on the S&P 500 and forecasts a chance that the US will slump into an economic slowdown in the first half of 2024. “If we are marching toward that, it would appear this would be at very early stages, but we need to wait a few more weeks to see where the year-end momentum is going.” Small-caps shares sliding may signal expectations for slowing growth. Those companies, which are historically among the first to bottom before broader markets bounce higher, are closely tied to the domestic economy and tend to have less diversified lines of business than their larger peers, making them a riskier bet in times of economic uncertainty. by Jessica Menton, Elena Popina & Esha Dey Bloomberg Stocks flash recession warning as trouble spreads to industrials A complicating factor in looking at signals like small-cap stocks is how much the market had risen this year before malaise set in. The S&P 500 surged almost 20% through July 31. So while the index is down nearly 6% since then, it still has a long way to go before giving back all its gains for 2023 — and it’s not obvious what would trigger a big drop. The other challenge is history. The last three times the S&P 500 shed at least 1% in both August and September, it rebounded in October, rising 8% in 2022, 8.3% in 2015 and 11% in 2011, according to Ryan Detrick, chief market strategist at Carson Group. Going back to the 1950s, the gauge has been higher in October in nine of the 10 times it’s lost at least 1% in August and September. In addition, infrastructure spending and US companies moving more of their production capabilities back to North America are helping to create more business for industrial companies, and that’s revenue that isn’t as dependent on interest rates, said Jeff Cianci, director of research at Catherine Avery Investment Management. “The valuations of the industrials and materials we buy are well below where they should be trading,” Cianci said. “The market is pricing in the risk of a downturn that we do not see.” Read also: Morgan Stanley’s Wilson sees risks rising for US consumer stocks BofA says rate worries spark biggest stock outflows this year The small-cap Russell 2000 Index has lost more than 11% from its July 31 closing high, roughly twice the decline in the S&P 500 Index over the same time. Steep drops in small-cap and industrial stocks typically occur when the economy is in a recession. Reuters
tuesday september 26, 2023 17 The E dge C E O m o rning brief world (Sept 26): Electric car maker Zeekr is banking on extra momentum from sister brands like Volvo Car AB to push into Europe, just as Chinese carmakers’ ambitions in the region move into the crosshairs of global trade tensions. The brand, part of billionaire Li Shufu’s sprawling auto empire that includes stakes in Mercedes-Benz Group AG, started European sales of two models just weeks ago and plans to add another seven by 2025. The aspirations could hit a roadblock should the European Union (EU) impose extra import tariffs on Chinese EVs, after opening a probe into state aid last week. Being part of Li’s Zhejiang Geely Holding Group Co Ltd “is giving us an important headstart,” Europe head Spiros Fotinos said in an interview, declining to comment on the EU’s investigation. “Geely has established itself through Volvo, Polestar and Lynk & Co — that adds a trust mark.” Founded as a standalone brand in 2021, Zeekr in late June started sales of the €59,490 (RM296,853) 001 sedan and €44,990 X compact SUV models, which compete with Volkswagen AG’s ID.7 and BMW AG’s iX1. To warm European customers to an unknown Chinese automaker, a team of more than 500 helps design its models in Gothenburg. The efforts could help set Zeekr apart as BYD, Nio and Great Wall lead a range of Chinese companies taking aim at Europe. Zeekr’s ambitions may stall on souring trade relations. Last week, European Commission president Ursula von der Leyen kicked off a probe into potentially unfair state support of China’s EV makers, a move the country branded as “naked protectionism.” The investigation could hit almost US$7 billion (RM32.77 billion) of electric car and van imports with tariffs possible by June, according to Bloomberg Intelligence. The EU’s top trade negotiator Valdis Dombrovskis, who is on a four-day trip to China, said the bloc is seeking a new strategy towards the country, calling the current relationship “very imbalanced”. For parent company Geely, pulling off Zeekr’s arrival in Europe would help shape a hodgepodge of auto holdings and reap economies of scale. The Hangzhou-based company has been building European roots since taking over Volvo Cars from Ford Motor Co in 2010, with its network spanning stakes in truckmaker Volvo AB to control of sports car maker Lotus. It’s also finalising a deal with Renault SA to pool combustion-engine assets. Chinese EV maker Zeekr sweeps into Europe amid subsidy spat (Sept 25): The European Union’s (EU) chief trade negotiator warned China on Monday during his trip to the nation that the bloc will be more forceful in upholding fair competition and defending its interests. “The lack of reciprocity and level playing field from China, coupled with wider geopolitical shifts, has forced Europe to become more assertive,” said Valdis Dombrovskis, an executive vice president at the European Commission, during a keynote address at Tsinghua University. “The EU welcomes competition. It makes our companies stronger and more innovative. However, competition must be fair, and we will be more assertive in tackling unfairness.” Dombrovskis’ trip coincides with efforts by the EU to strengthen the defensive trade measures at its disposal. The bloc earlier this month launched an anti-subsidy probe into Chinese electric vehicles (EVs), which it said was needed to protect jobs and supply chains at home as it claims China is unfairly flooding the market with cheap vehicles. China’s Commerce Ministry has criticised that investigation as “a naked act of protectionism”. The EV issue is expected to feature on Dombrovskis’ agenda during his China trip. Asked later on Monday about claims the country had created a non-level playing field, Chinese Foreign Ministry spokesman Wang Wenbin called China a “law-based country”. “China is not a source of risk, but a staunch force for preventing and diffusing risks,” Wang told reporters at a regular press briefing. “China is an important cooperation partner for the EU. To shut out China in the name of de-risking is to throw away opportunities for cooperation, stability and development.” In addition to a Monday event with Premier He Lifeng, the EU trade chief is also holding bilateral meetings with counterparts, and meeting European business representatives both in Shanghai and Beijing. Dombrovskis is expected to tell Beijing that concrete agreements are needed in an effort to reset the relationship, according to people familiar with the EU’s plans. During his speech, Dombrovskis argued that the EU’s de-risking strategy is not protectionist. He added that the EU’s EU warns China it will be ‘more assertive’ on fair trade plans are country-agnostic. “Our approach to economic security is proportionate and precise, and our action will be purely risk-based,” he said. “De-risking is therefore a strategy to maintain our openness, but not undermine it.” The current talks may also be a stepping stone for a summit between President Xi Jinping and the EU’s Ursula von der Leyen later this year. “We can choose a path towards mutually beneficial relations. One which is based on open, fair trade and investment, and working hand in hand on the great challenges of our time,” Dombrovskis said on Monday. “Or, we can choose a path that slowly moves us apart. Where the shared benefits we enjoyed in recent decades weaken, and fade. And as a result, where our people and economies face reduced opportunities.” Ukraine rift Dombrovskis also cited challenges related to Russia’s war in Ukraine, saying that differences over the conflict could cause a rift between Brussels and Beijing. by xlberto Nardelli Bloomberg by Rafaela Lindeberg Bloomberg Read the full story Read also: China urges EU to show restraint in EV probe and use caution Read the full story Read also: Nio considering raising US$3 bil from investors Chinese start-up says self-driving trucks save fuel, and lives
tuesday september 26, 2023 18 The E dge C E O m o rning 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 26, 2023 19 The E dge C E O m o rning brief world (Sept 25): A senior banker at Nomura Holdings Inc has been barred from leaving China in a move connected to a long-running investigation of a top dealmaker in the country, the Financial Times (FT) reported. Charles Wang Zhonghe, who is chair of investment banking for China at the Hong Kong arm of the Japanese bank, has not been detained and is only restricted from exiting China, the newspaper reported, citing people familiar with the matter it didn’t identify. Nomura declined to comment and Wang didn’t immediately reply to a request for comment, the FT said. A Nomura spokesperson declined to comment to Bloomberg News. The Chinese Foreign Ministry didn’t immediately respond to a request or a comment. The travel restriction is linked to Wang’s time at Industrial & Commercial Bank of China Ltd, where he worked before joining Nomura in 2018, according to the report. While at ICBC he overlapped with Cong Lin, a former executive at China Renaissance Holdings Ltd who was summoned by regulators a year ago and has since been detained, the newspaper said. Cong left ICBC to join China Renaissance — a local investment bank founded by Bao Fan — in 2017 after playing an important role in a strategic partnership between the firms, the FT reported. Bao has been detained since early this year. The investment climate in China has become increasingly fraught as the economy struggles and President Xi Jinping has cracked down on broad swathes of the private sector over the past few years. The finance industry has been rocked by a clampdown on alleged corruption that started in late 2021 and has shown no sign of abating. The dragnet has become the most extensive ever and dovetails with a broader government shakeup as Xi embarked on a third term in office. In August, China Renaissance said Bao Fan was still “cooperating” in an unspecified investigation, six months after the once high-flying banker’s sudden disappearance sent shockwaves through the country’s financial services sector. In China, the abrupt absence of a senior executive has come to signal a state crackdown or investigation. In several cases, the person is said to be assisting with graft probes. Publicly listed companies tend to report they have lost contact with the executive and need to make their own inquiries into what happened within the country’s opaque legal system. Senior Nomura banker barred from exiting China — FT (Sept 26): The crisis at China Evergrande Group deepened on Monday after the company’s mainland unit said it failed to repay an onshore bond, adding a new layer of uncertainty to the developer’s future as a restructuring plan with its offshore creditors teeters. The builder at the centre of China’s property developer crisis said its Hengda Real Estate Group Co subsidiary defaulted on four billion yuan (RM2.57 billion) in principal plus interest due on Sept 25. In March, Hengda missed an interest payment on the 5.8% yuan bond issued in 2020, and said it would “actively” negotiate with bondholders to find a solution, a promise it reiterated in Monday’s statement. Evergrande is running out of time to get what would be one of the nation’s biggest-ever restructurings back on track after setbacks in recent days have raised the risk of a potential liquidation. The company has scrapped key creditor meetings at the last minute, saying it must revisit its restructuring plan, faced the detention of money management unit staff, and been unable to meet regulator qualifications to issue new bonds. That last item is a major blow to its planned restructuring of at least US$30 billion (RM140.46 billion) of offshore debt that would have creditors swap defaulted notes for new securities. Evergrande’s shares plunged as much as 25% on Monday. Meanwhile, Caixin reported on Monday that Xia Haijun, an ex-chief executive officer of Evergrande, and Pan Darong, a former chief financial officer, have been detained by Chinese authorities. As the poster child for China’s property crisis, Evergrande is under pressure to finalise a blueprint for its offshore debt restructuring as it grapples with an even bigger pile of total liabilities that amount to 2.39 trillion yuan — among the biggest of any property firm in the world. With the company faces an Oct 30 hearing at a Hong Kong court on a winding-up petition, which could potentially force it into liquidation, the clock is ticking. The distressed real estate giant said late on Sunday it couldn’t satisfy requirements of the China Securities Regulatory Commission (CSRC) and the National Development and Reform Commission to issue new notes. It Evergrande crisis worsens as defaults pile up, ex-CEO detained cited an investigation of Hengda, without elaborating. The unit said in August that the CSRC had built a case against it relating to suspected information disclosure violations. The latest signs of trouble at Evergrande caused simmering worries about China’s deepening property crisis to flare. A gauge of Chinese property stocks tumbled the most in nine months on Monday, taking its loss in valuation this year to US$55 billion. China Aoyuan Group Ltd slumped by a record after its shares resumed trading, and property investing firm China Oceanwide Holdings Ltd faced court-ordered liquidation after a Bermuda court issued a winding-up order. Evergrande, whose default in late 2021 opened the door to record debt failures by developers, late on Friday cancelled key creditor meetings that had been set for early this week and said it must reassess its proposed restructuring. It cited sales that have “not been as expected.” “A huge amount of work has gone into the planning and formulation of Evergrande’s restructuring plans, but if the sales forecasts underpinning the turnaround now appear unachievable, it is better to revisit the deal terms before scheme meetings are held,” said Jonathan Leitch, a partner specialised in debt restructuring at law firm Hogan Lovells in Hong Kong. Bloomberg by Ambereen Choudhury Bloomberg Read also: China developers drop most in nine months on Evergrande woes China Evergrande Group said its Hengda Real Estate Group Co subsidiary defaulted on four billion yuan (RM2.57 billion) in principal plus interest due on Sept 25. Read the full story
tuesday september 26, 2023 20 The E dge C E O m o rning brief world (Sept 25): Artificial intelligence startup OpenAI is rolling out a feature for its ChatGPT app that lets the chatbot respond to spoken questions and commands with speech of its own. Starting over the next two weeks, users will be able to choose a voice in the chatbot app, picking from five personas with names like “Juniper,” “Breeze” and “Ember.” ChatGPT will then produce audio of the text it generates in that voice — for example, reading an AI-generated bedtime story out loud. The feature will be available to people who subscribe to OpenAI’s US$20-per-month ChatGPT Plus service and enterprise users. OpenAI released its ChatGPT app in May, and already offers a voice-to-text capability that lets users talk to the bot. Adding an audio response feature could create a sense that people are having a more human conversation. The company hopes the new feature will encourage on-the-go uses of its mobile app, putting it in closer competition with personal assistant offerings like Google’s Assistant, Apple Inc.’s Siri or Amazon.com Inc.’s Alexa. Requests could include asking the program to talk about the history of Disneyland while driving to the theme park, or asking for a cocktail recipe while rummaging around in the kitchen. In a test of the tool, it ably narrated a story about a starfish and a rutabaga. However, while ChatGPT can come up with lyrics for songs, the app will decline to sing. The voices of ChatGPT sound fairly human-like (though a close listen reveals a bit of a robotic monotone). OpenAI said OpenAI gives ChatGPT the ability to speak in five different voices SAN FRANCISCO (Sept 25): Amazon. com on Monday said it will invest up to US$4 billion (RM18.7 billion) in cash in the high-profile startup Anthropic, in its effort to compete with growing cloud rivals on artificial intelligence. Amazon’s employees and cloud customers will gain early access to technology from Anthropic as part of the deal, which they can infuse into their businesses. The San Francisco-based startup also committed to rely primarily on Amazon’s cloud services, including training its future AI models on large quantities of proprietary chips it would buy from the online retailing and computing giant. In a joint interview, the CEOs of Amazon’s cloud division and Anthropic said the immediate investment will be US$1.25 billion, with either party having the authority to trigger another US$2.75 billion in funding by Amazon. They declined to state how much Amazon now would own of Anthropic or the startup’s updated valuation, last estimated at more than US$4 billion. Amazon said it would not gain a board seat and that its stake amounted to a minority position. The news represents perhaps Amazon’s biggest answer yet to challenges from Microsoft and Alphabet’s Google, smaller cloud rivals that have marketed or developed powerful AI this year. The deal also shows ongoing maneuvering by the cloud companies to secure ties with AI startups reshaping their industry. Since 2019, Microsoft has put billions of dollars into its partnership with ChatGPT’s creator OpenAI, giving its customers special access to the startup’s prose-writing, image-generating technology. Google meanwhile helped pioneer this branch of AI and in May invested in Anthropic’s US$450-million fundraise, in a relationship the startup said is not going away. For Amazon, Monday’s deal may spell an uptick in demand, including for chips powering AI. Anthropic agreed to work on developing technology for Amazon’s in-house Trainium and Inferentia chips, for instance. Adam Selipsky, Amazon Web Services’s CEO, said the pact “will help make Anthropic’s models better, will help make our chip technology and our AI infrastructure better.” Dario Amodei, Anthropic’s CEO, said his company “has obtained the money in a way that allows it to prioritize safety” and “allows us to continue to scale up our models.” Still tied to Google Anthropic, founded by former OpenAI executives including Amodei, is one of a series of companies building so-called generative AI, systems that can draft content as if a human created it. Anthropic has aimed to distinguish its work by training AI to adhere to moral values. Amazon steps up AI race with up to US$4 bil deal to invest in Anthropic by Jeffrey Dastin Reuters by Rachel Metz Bloomberg it worked with voice actors to build the text-to-speech AI model that underlies the feature. The company also said than in the coming weeks paid and enterprise users will be able to access a feature for GPT-4 — one of the AI models that powers ChatGPT — to submit a picture and a related question about it. For example, it will be possible to upload a picture of pink sunglasses and ask the chatbot to suggest an outfit to go with it, or to submit a picture of a math problem and request help solving it. The feature, which OpenAI announced earlier this year when it unveiled GPT-4, is available through the ChatGPT app and website. Read also: Getty Images to debut its own AI image generator Microsoft loses last sell rating as Guggenheim raises on AI The news represents perhaps Amazon's biggest answer yet to challenges from Microsoft and Alphabet's Google, smaller cloud rivals that have marketed or developed powerful AI this year. The deal also shows ongoing maneuvering by the cloud companies to secure ties with AI startups reshaping their industry. continues on Page 22
tuesday september 26, 2023 21 The E dge C E O m o rning brief PRESENTS REAL ESTATE MATTERS Official Solar Partner Supported By
TUESDAY SEPTEMBER 26, 2023 22 THEEDGE CEO MORNING BRIEF WORLD Indians have five days to deposit US$3 bil in soonto-be-withdrawn banknotes (Sept 25): India is loosening its planned restrictions on imports of laptops, tablets and other IT hardware, giving manufacturers such as Apple Inc, HP Inc and Dell Technologies Inc more time to prepare for potential curbs. The South Asian country is doing away with a compulsory licensing requirement for tech importers, and will instead only ask such companies to register under its so-called import management system, people familiar with the policy said. The system will start operating on Nov 1, they said, asking not to be named as the matter isn’t public. India is seeking to boost local production while trying to ensure sufficient availability of consumer electronics. The federal government last month shocked companies such as Apple and Samsung Electronics Co as it announced a plan to curb laptop and tablet imports without a suddenly required licence. A day later India’s trade regulator delayed the move by three months. As part of the latest plan, all companies bringing everything from tablets and laptops to desktop computers and servers into India will have to register. But unlike under the previously considered licensing regime, where companies were (Sept 25): India’s highest value banknote will be withdrawn in less than a week — and there’s still almost 240 billion rupees (US$2.9 billion or RM13.54 billion) worth of the notes in circulation. The Reserve Bank of India (RBI) ordered the withdrawal of the 2,000-rupee note on May 19, giving people until the end of September to exchange or deposit them with banks. While the vast majority of the 3.56 trillion rupees have since been banked, 7% of the notes remained in circulation as of Sept 1. The pink-hued 2,000-rupee note was introduced in November 2016 to remonetise the economy, after Prime Minister Narendra Modi’s shock decision to remove 1,000 and 500 rupee notes as legal tender overnight, as part of an anti-corruption push. It quickly became a favourite storage of value and the note of choice for large cash deals. In its withdrawal notice, the RBI said the notes had served their purpose and were not commonly in use. It also cited its “clean note policy” to replace soiled notes within four to five years. The May announcement led to a mini consumption boost for India’s economy, with local media reporting packed jewellery shops selling gold at a premium. The notes will continue to remain legal tender even after Sept 30, but they will not be accepted for transaction purposes and can only be exchanged with the RBI. The holder will have to explain why the general deadline could not be met. expected to cut back imports immediately, the new rules won’t limit inbound shipments for about six to nine months, the people said. A quota on imports could gradually kick in as companies begin to manufacture laptops, tablets and other hardware locally. The size of each company’s quota will depend on its local production, import of IT hardware as well as export of such products from India, the people said. The planned new rules don’t apply to smartphones. India’s technology ministry didn’t immediately respond to a request for comment. The manoeuvres are part of Prime Minister Narendra Modi’s drive to increase local production and create a world-class tech manufacturing industry in India as companies look to diversify supply chains beyond China. India this year introduced a US$2.1 billion financial incentive plan to draw computer makers to the world’s most populous nation. Companies including Dell, HP, Lenovo Group Ltd, Foxconn Technology Group and Asustek Computer Inc have sought the subsidies to make laptops, tablets and other products in India. India loosens planned restrictions on laptop, tablet imports BY SANKALP PHARTIYAL Bloomberg BY ANUP ROY Bloomberg Read also: Household savings at 16-year low threaten India’s growth BLOOMBERG Amodei declined to state if its latest financing was competitive. Anthropic is continuing an agreement it announced with Google in February, he said. Anthropic is using Google’s custom chips and has planned to make its technology available via Google Cloud and elsewhere. Yet with Monday’s deal, Anthropic is giving a boost to Amazon Bedrock, a service that has attracted thousands of users to start building AI applications. Amazon’s customers will gain features from Anthropic early, such as the ability to customize their AI. Selipsky said, “both companies are committing that, for many years to come, future versions of Claude will be available on Amazon Bedrock, and that’s important.” Anthropic’s Claude 2 is an AI model that is able to respond to particularly large prompts, setting it up to analyze long business or legal documents. Amodei said the deal “allows us to work more closely to drive enterprise usage for Claude,” which he said represented much of the demand on Bedrock so far. LexisNexis, a data analytics company, is working with Anthropic and Amazon to make its own legal search capabilities more “intelligent,” Amodei said. Other customers include Bridgewater Associates and Lonely Planet, he said. FROM PAGE 20
TUESDAY SEPTEMBER 26, 2023 23 THEEDGE CEO MORNING BRIEF WORLD (Sept 25): Philippine central bank governor Eli Remolona signalled officials are intervening to defend the peso at the 57-per-dollar level to prevent the currency from weakening further. “There are resistance levels, and when those are crossed, you’ll suddenly see trades in the same direction. There’s herding,” Remolona said in an interview Monday, when asked if the central bank has been keeping the exchange rate from breaching 57 per dollar. The peso is among the worst-performing Asian currencies this quarter, dropping nearly 3% against the greenback. While a selloff in emerging markets on speculation interest rates will stay elevated in the US is bolstering the dollar, the peso is hit harder than most peers. The Southeast Asian nation imports almost all of its oil requirements, and crude prices marching toward US$100 a barrel are weighing on the peso. The elevated global cost of rice, a staple food, is also hurting sentiment. “There are narratives in the market that Philippine central bank signals peso intervention at 57 a dollar OSAKA (Sept 25): Bank of Japan governor Kazuo Ueda said there was “very high uncertainty” over whether companies would continue raising prices and wages, stressing anew the bank’s resolve to maintain ultra-loose monetary policy. He also offered a cautious take on the overseas economic outlook, warning of the fallout from aggressive US interest rate hikes and sluggish growth in the Chinese economy. The key to the outlook for monetary policy is whether strong wage growth and consumption, rather than cost pressures from rising import costs, become the key driver of inflation, Ueda said. “We’re seeing some signs of change in corporate wage- and price-setting behaviour. But there is very high uncertainty on whether these changes will broaden,” Ueda told business leaders in the western Japanese city of Osaka on Monday. Under its yield curve control (YCC) policy, the BOJ guides short-term interest rates at -0.1% and caps the 10-year government bond yield around zero. In a news conference after the meeting, Ueda said the BOJ could tweak YCC when the stable, sustained achievement of its 2% inflation target comes into sight. But the BOJ had “no clear image in mind” yet on when and how it could ditch the yield cap or raise short-term interest rates. “It will be a comprehensive judgement” assessing various factors including the wage outlook, as well as the strength of consumption and capital expenditure, he added. The BOJ maintained ultra-low interest rates on Friday and its pledge to keep supporting the economy until inflation sustainably hits its target, dispelling market speculation that rising inflation would soon prod the bank to phase out its massive monetary stimulus. Ueda told the meeting the BOJ was “not fully convinced” that wage hikes would keep accelerating, as many companies seemed undecided on their wage strategy for next year and beyond. BOJ chief warns of highly uncertain wage, price outlook BY LEIKA KIHARA Reuters BY ANDREO CALONZO, MANOLO SERAPIO JR & CLARISSA BATINO Bloomberg “The cost-push inflation we’ve seen so far hurts companies and households. That’s why we are supporting demand and the broader economy with easy monetary policy,” he added. On the yen’s recent falls, Ueda said the BOJ was keeping a close eye on their impact on economic and price developments. The BOJ’s ultra-loose policy has been blamed by some politicians as hurting households and retailers by weakening the yen, and pushing up raw material import costs. In the past, a weak yen had drawn words of praise from business executives in Osaka, which is home to big exporters and manufacturers like Panasonic. But executives who spoke at Monday’s session with Ueda complained of the pain the weak yen was inflicting on smaller firms struggling to cope with rising raw material costs. “We hope the BOJ will slowly and carefully move toward an exit from ultra-easy policy,” Shingo Torii, head of the Osaka Chamber of Commerce and Industry, said in the meeting with Ueda. are sometimes wrong. That pushes the peso in the wrong direction and that calls for some intervention and some clarification,” the governor said in his office in Manila, referring to speculation the currency would weaken further. The support level for the peso is 57 against the dollar, he said. The currency was little changed at 56.785 on Monday, after touching 56.99 earlier this month. The deepening losses may prompt Bangko Sentral ng Pilipinas to intervene more aggressively to protect the currency, similar to last year when it spent billions of dollars from its reserves as the peso plummeted to a record low of 59 against the dollar in late September. Remolona said he isn’t worried the peso will weaken back to 59 per dollar. “If all currencies weaken along with the peso, that is dollar strength and not peso weakness,” he said. “The reasons for that will probably be global reasons, general uncertainty, and we won’t be intervening a lot.” Read also: Japan to compile economic package to ease inflation pain Yen sinks after BOJ stresses need to keep easy policy REUTERS Eli Remolona BLOOMBERG
tuesday september 26, 2023 24 The E dge C E O m o rning brief world NEW YORK (Sept 25): Oil prices edged lower in choppy trade on Monday as Russia relaxed its fuel ban, after earlier gains on a tighter supply outlook, while investors eyed elevated interest rates that could curb demand. Brent crude LCOc1 futures were down 30 cents at US$92.97 (RM435.29) a barrel by 10.33am EDT (1433 GMT). US West Texas Intermediate crude CLc1 was down 58 cents at US$89.45. Russia approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels and diesel with high sulphur content, a government document showed on Monday. The ban on all types of gasoline and high-quality diesel, announced last Thursday (Sept 24), remains in place. “The market continues to digest Russia’s temporary ban on diesel and gasoline exports into an already tight market, offset with the Fed’s hawkish message that rates will stay higher for longer,” said IG Markets analyst Tony Sycamore. Crude prices fell last week after a hawkish Federal Reserve rattled global financial markets and raised concerns over oil demand. That snapped a three-week rally of more than 10% after Saudi Arabia and Russia constrained supply by extending production cuts to the end of the year. Last week, Moscow issued a temporary ban on gasoline and diesel exports to most countries to stabilise the domestic market, fanning concerns of low products supply as the Northern Hemisphere heads into winter. Also weighing on oil prices, the US dollar index strengthened on Monday to the highest since November 2022. A stronger greenback makes US dollar-priced oil more expensive for holders of other currencies, curtailing demand. “We seem to have risk-off sentiment because of strength in the dollar,” Price Futures Group analyst Phil Flynn said. On the supply side, the number of operating oil rigs in the US fell by eight to 507 last week — the lowest count since February 2022 — despite higher prices, a weekly report from Baker Hughes showed on Friday. Compounding supply constraints, US oil refiners are expected to have about 1.7 million barrels per day (bpd) of capacity offline for the week ending Sept 29, decreasing available refining capacity by 324,000 bpd, research company IIR Energy said on Monday. Offline capacity is expected to rise to 1.9 million bpd in the week ending Oct 6, IIR added. In Iran, an explosion was reported on Monday at Iran’s southern refinery of Bandar Abbas, according to the official IRNA news agency, following a gas leak. Expectations of better economic data this week from China, the world’s largest crude importer, lifted sentiment. However, analysts flagged that oil prices face technical resistance at the November 2022 highs reached hit last week. China’s manufacturing sector is expected to expand in September, with the purchasing manufacturing index forecast to rise above 50 for the first time since March, Goldman Sachs analysts said. Oil prices edge lower as Russia eases fuel export ban (Sept 25): Cargo firm SAL Saudi Logistics Services Co received orders for all shares in its Riyadh initial public offering (IPO) hours after books opened on the deal, showing ongoing investor demand for listings in the kingdom. Saudi Arabia’s biggest airline and another shareholder on Monday said they were seeking to raise as much as 2.54 billion riyals (RM3.17 billion) from the IPO. Order books were covered across the price range within a few hours, according to people with knowledge of the matter who asked not to be identified because the matter is private. A representative for SAL declined to comment. The deal is the latest indicator of robust sentiment in what is usually the Persian Gulf’s biggest and busiest listings market after a slow first half. A drop in Saudi Arabia’s stock market from the second half of last year through to March on weaker oil prices helped put a brake on listing activity, with offerings only picking up again at the start of the summer. Earlier on Monday, Lumi Rental Co surged by the 30% limit on trading debut. And oil driller ADES Holding Co, backed by the kingdom’s sovereign wealth fund, last week drew US$76.5 billion in orders for its US$1.2 billion IPO — the country’s largest this year. Saudi cargo firm SAL’s US$678 mil IPO sells out in hours Saudi Arabian Airlines Corp, also known as Saudia, and Tarabot Air Cargo Services Ltd are offering 24 million shares — a 30% stake — at 98 riyals to 106 riyals each in the cargo firm, according to a statement. The price range values SAL at as much as 8.48 billion riyals. The bookbuilding period for institutional investors will run until Oct 1 while retail buyers will be able to place orders from Oct 11 to Oct 13. Saudia currently owns 70% of SAL, while Tarabot owns 30% of the firm. Crude prices have rallied strongly this quarter as Saudi Arabia and Russia extended their production curbs through the end of the year, while the benchmark Tadawul Index has climbed about 10% from its March low. Saudi Arabia has outlined an ambition to become a global supply chain hub and develop one of the largest airports in the world in Riyadh, as part of its plans to diversify the economy. SAL is the leading cargo handling player in Saudi Arabia with a roughly 95% market share and also handles transit and export shipments. The company had revenue of 1.22 billion riyals in 2022 and net income of 362 million riyals. In the first half of this year, SAL posted revenue growth of 15% year-on-year. HSBC Holdings plc’s Saudi unit has been appointed as sole financial advisor, bookrunner, global coordinator, lead manager and underwriter for the IPO. by Julia Fioretti & Matthew Martin Bloomberg by Stephanie Kelly & Nicole Jao Reuters The benchmark Tadawul Index has climbed about 10% from its March low. bloomberg
tuesday september 26, 2023 25 The E dge C E O m o rning brief world news In brie f Lego drops plans to make new blocks from used plastic bottles (Sept 25): Lego A/S has dropped plans to use recycled plastic bottles to make new building blocks and will instead pursue other materials to cut carbon emissions. Two years ago, the world’s largest toymaker unveiled a successful prototype block from discarded bottles, saying it appeared to be the best among more than 250 variations of sustainable plastic materials. But now Lego has found that using recycled PET won’t reduce overall CO2 emissions because it requires too much new production equipment.Lego will instead look for other solutions, it said by email on Monday, adding that PET was just “one of hundreds of different sustainable materials” it’s evaluating. “We’re currently testing and developing Lego bricks made from a range of alternative sustainable materials, including other recycled plastics and plastics made from alternative sources such as e-methanol,” Lego said. Lego said it expects to spend more than US$1.2 billion (RM5.6 billion) on sustainability over the four years to 2025. The story was first reported by the Financial Times. Lego has a goal to reach net zero emissions in 2050 and an interim 2032 target of a 37% reduction from a 2019 base. The company has so far made limited progress cutting its absolute emissions amid high sales growth, but has invested in new CO2 neutral factories in Vietnam and the US. — Bloomberg Aviva buys AIG’s UK protection business for £460 mil (Sept 25): Aviva plc is buying American International Group Inc’s UK protection business for £460 million (RM2.67 billion) in a deal that would expand the UK insurer’s presence in the local market. The Londonbased company will use internal resources to acquire AIG Life Ltd from Corebridge Financial Inc, an AIG subsidiary, according to a statement on Monday. The transaction is expected to close in the first half of 2024. The purchase “continues our progress in repositioning the group towards capital-light growth,” Aviva Group chief executive officer Amanda Blanc said in the statement. As part of a strategic overhaul, Aviva has been scaling back its overseas presence, selling assets in markets including Italy and Singapore. The acquisition of the AIG unit will help it reach more customers such as small and medium enterprises and high net worth propositions, according to the statement. The transaction consideration represents 0.9 times AIG Life UK’s Solvency II own funds, after adjusting for expected capital synergies, according to the statement. — Bloomberg Singapore’s August core inflation rises 3.4%, seen easing SINGAPORE (Sept 25): Singapore’s key consumer price gauge rose 3.4% in August, almost matching economists’ forecasts, and easing compared with July’s figures due to lower inflation for services, food, retail and other goods, official data showed on Monday. The core inflation rate — which excludes private road transport and accommodation costs — climbed 3.4% year-on-year in August, almost in line with a forecast in a Reuters poll of economists of 3.5%, and lower than the 3.8% seen in July. “Global supply chain frictions have largely eased, and food commodity prices remain below year-ago levels,” said a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry. Headline inflation in August was up 4% from the same month last year, as forecast in the poll. “Consumer price inflation in Singapore’s major trading partners has also been on a gradual moderating trend,” the authorities added. Economists are generally expecting MAS, the central bank, to keep monetary policy settings unchanged in a scheduled review next month, on a weak growth outlook and still-elevated but easing inflation. — Reuters Booking to challenge EU antitrust veto against ETraveli deal BRUSSELS (Sept 25): Booking Holdings will challenge an EU antitrust veto against its €1.63 billion (RM7.9 billion) purchase of Swedish peer ETraveli Group, the US online travel agency said on Monday. The European Commission had earlier on Monday blocked the deal, saying the company’s remedies were not sufficient to address regulatory concerns about Defi project Mixin Network suspends services after US$200 mil crypto hack (Sept 25): Decentralised finance project Mixin Network has suspended deposits and withdrawals after suffering a hack involving US$200 million (RM936.4 million) in crypto assets, the entity said through a post on X, the firm previously known as Twitter. The breach was caused by a compromise in the project’s cloud service provider’s database, according to blockchain security firm SlowMist, which is assisting Mixin in the investigation. “Regarding how to deal with the lost assets, the Mixin team will announce the solution afterward,” Mixin wrote in the post. Mixin Network aims to help blockchains handle more transactions by processing more with zero fees, according to its white paper. The top 100 assets on the network were valued over US$1.1 billion, according to its July monthly report. The project’s native token XIN was trading at US$194, down 8.6% over the past 24 hours, according to data from CoinGecko. — Bloomberg Singapore’s deputy PM appointed as GIC’s deputy chairman SINGAPORE (Sept 25): Lawrence Wong, who is the Singapore’s deputy prime minister and finance minister, has been appointed as GIC’s deputy chairman. Wong’s appointment is effective Oct 1. Wong has been a director at GIC since Nov 1, 2018. More recently, he was appointed the chairman of its investment strategies committee (ISC) on July 7. In his new role, Wong will assist the chairman of GIC, Prime Minister Lee Hsien Loong, to lead the board in overseeing GIC’s long-term asset allocation and portfolio performance. Wong is also currently the chairman of the Monetary Authority of Singapore (MAS) as well as the Singapore Economic Development Board’s (EDB) International Advisory Council. He is also a member of the Future Economy Council, the Research, Innovation and Enterprise Council and the National Research Foundation Board. — theedgesingapore.com Lawrence Wong Bloomberg the deal that would have strengthened its market power. “The company strongly believes the Commission is wrong on both the facts of the case and the law applicable to this transaction, which was cleared unconditionally by multiple competition authorities, including the UK Competition & Markets Authority and US FTC,” Booking said in a statement. The company also announced the extension of its flight agreement with ETraveli to 2028. — Reuters
tuesday september 26, 2023 26 The E dge C E O m o rning brief world Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (Sept 22, 2023) Capesizes The Pacific market started with a positive outlook, maintaining healthy cargo volumes driven by substantial coal shipments from East Coast Australia to the Far East. Rates initially increased, but as the week progressed, a notable shift occurred. Owners began contemplating ballasting towards the Atlantic, creating additional pressure in the Pacific market. Despite the presence of all three major players mid-week, the Pacific market displayed signs of stability but later experienced a softening trend, which was partially attributed to a decline in the FFA market. Meanwhile, the Atlantic remained relatively quieter, with limited discussions and a shortage of prompt tonnage in the North Atlantic. South Brazil and West Africa to the Far East continued to be well supported, but rates for earlier dates softened and bid-offer spreads widened. Overall, the week saw fluctuating dynamics in both the Pacific and Atlantic markets, marked by shifts in sentiment and rates. Panamax The week began positively in the Panamax sector, with both the Atlantic and Pacific basins well supported with good demand on all the major trades. However, as the week closed some of the gains appear to have been eroded somewhat. In the Atlantic, decent South America demand seen throughout, coupled with evidence of October arrival US Gulf stems, gave the market some impetus it had been lacking in recent weeks. However, ballast tonnage count now appears heavy, keeping a lid on rates as the weekend approached. Asia started with healthy demand ex NoPac and Australian mineral business, but like the Atlantic, the week appears to have tailed off a touch with wide bid/offer gaps appearing as a different opinion enveloped true market value. Period activity was evident, with several one-year deals concluded, including US$16,250 concluded on a scrubber fitted 82,000-dwt whilst US$15,000 agreed on a standard 82,000-dwt type delivery Taiwan. Ultramax/Supramax A strong week overall for the sector. Sustained demand was seen from the US Gulf for fronthaul trips to Asia. Whilst strong demand was once again seen from the Continent, Mediterranean regions helping to keep rates at good levels. Tight tonnage availability was an aspect in the South Atlantic, although some cautioned that fresh enquiry was limited for October as the week closed. The Asian arena similarly saw stronger numbers being achieved throughout the week as enquiry from Indonesia remained abundant. The North also saw better demand both from the NoPac and for backhaul steel requirements from China to the Continent. Period cover was still sought. A 63,000-dwt open India fixing at US$16,000 for 5 to 7 months trading, whilst another 63,000-dwt open China fixed one year at around US$14,000. In the Atlantic, a Supramax was heard fixed from the Baltic to WC India at US$28,000. From Asia, a 63,000-dwt open South Korea was fixed for a NoPac round with wood pellets at US$16,000. A 63,000-dwt open North China was fixed for a trip to the Continent at US$12,750 for first 65 days and US$16,000 for the balance. Further south, a 63,000-dwt open South Vietnam fixed a trip via Indonesia redelivery South China at US$20,500. Handysize In a largely positive week across a majority of sectors in the handy market, gains were seen in both basins. The Continent and Mediterranean saw increased cargo availability and limited tonnage with a 34,000- dwt fixing from the Immingham to the Mediterranean at US$22,000. The Black Sea was also active, with a 28,000-dwt fixing from Constanta to Morocco with an intended cargo of grains at US$17,000 to a grain house. The South Atlantic has seen levels contract due to a lack of fresh enquiry and a 34,000-dwt was fixed from Recalada to East Coast India with an intended cargo of petcoke at US$19,000. In the US Gulf, a 37,000-dwt was fixed from Mobile to the Continent with an intended cargo of pellets at US$14,500. Activity was said to have been limited in Asia, but a 37,000-dwt was linked to fixing from CJK to Southeast Asia in the US$9,000s. A 35,000-dwt was fixed from San Francisco to intention China at about US$14,000. Clean The BCTI finished the week at 869, up from 849 the previous week. Rates for MRs in the US have flattened out slightly following the steady falls experienced since September. TC14: 38k US Gulf / UK-Continent finished the week unchanged at WS87.08. TC18: the MR US Gulf / Brazil came off more gradually from WS177.08 to end the week at WS170 (-WS7.08). TC21: MR US Gulf / Caribbean fared better increasing and peaking at US$535,833 (+US$19,166). On the UK-Continent, MRs freight levels have been steadily increasing with TC2: 37k UK-Continent / US Atlantic Coast finishing the week at WS192.25, (+WS13.75). TC19: 37k Amsterdam to Lagos, followed suit and finished at WS201.88 (+WS13.13). The recent September gains on the LR1’s of TC16 60k Amsterdam / Offshore Lomé flatted out over the course of the week finishing at WS165.63 (-WS2.5). West of Suez, on the LR2’s, TC15: 80k Mediterranean / Japan, continued to remain steady ending the week at US$2,945,833, a small gain of US$33,333 from the week before. Read the full report
tuesday september 26, 2023 27 The E dge C E O m o rning 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 105.18 -0.015 0.115 21.05 311.3 Ekovest BHD 98.14 0.000 0.590 73.53 1749.6 Malaysian Resources Corp Bhd 73.64 0.000 0.480 62.71 2144.4 UEM Sunrise Bhd 67.80 -0.035 0.875 243.14 4426.2 Widad Group Bhd 67.41 0.005 0.505 17.44 1563.7 Fintec Global Bhd 61.08 0.000 0.005 -50.00 29.6 My EG Services Bhd 56.20 -0.020 0.800 -7.02 5979.6 KNM Group Bhd 53.90 -0.005 0.120 140.00 485.3 Land & General Bhd 51.10 0.010 0.145 45.00 431.1 Iskandar Waterfront City Bhd 44.77 0.010 0.780 188.89 718.5 Talam Transform Bhd 41.12 0.005 0.025 66.67 107.4 Metronic Global Bhd 36.72 0.000 0.015 -25.00 23.0 Cypark Resources Bhd 34.80 -0.050 1.040 121.28 817.4 Sarawak Consolidated 34.39 0.000 0.450 210.34 288.1 Velesto Energy Bhd 32.68 0.000 0.255 70.00 2095.0 Eastern & Oriental Bhd 30.79 -0.010 0.705 71.95 1208.6 Daythree Digital Sdn Bhd 29.75 -0.005 0.400 0.00 192.0 Berjaya Land Bhd 29.22 0.020 0.300 13.21 1476.2 Puncak Niaga Holdings Bhd 29.02 0.040 0.410 74.47 183.4 Kanger International Bhd 26.95 0.005 0.075 87.50 48.7 Data as compiled on Sept 25, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) ZEN Tech International Bhd 0.020 33.33 443.1 0.00 52.6 Knusford BHD 0.810 32.79 397.9 35.00 80.7 G3 Global Bhd 0.025 25.00 524.0 -16.67 94.3 Talam Transform Bhd 0.025 25.00 41,115.9 66.67 107.4 Berjaya Assets BHD 0.345 16.95 3,372.2 18.97 882.6 CME Group BHD 0.035 16.67 233.7 16.67 36.2 BSL Corp Bhd 0.040 14.29 978.4 -40.83 77.3 Bina Puri Holdings BHD 0.040 14.29 1,104.0 0.00 134.8 Fitters Diversified Bhd 0.040 14.29 273.5 -42.86 93.7 Sentoria Group Bhd 0.085 13.33 5,838.5 -5.56 52.1 Puncak Niaga Holdings Bhd 0.410 10.81 29,022.9 74.47 183.4 Ocean Vantage Holdings Bhd 0.235 9.30 3,483.1 42.42 98.7 Ni Hsin Group Bhd 0.120 9.09 1,440.7 -14.29 62.8 Quality Concrete Holdings Bhd 1.130 8.65 0.6 -14.39 65.5 Ralco Corp BHD 0.840 8.39 131.2 -2.33 42.7 Parkson Holdings Bhd 0.325 8.33 17,602.3 140.74 373.4 Eduspec Holdings Bhd 0.065 8.33 3,740.1 -35.00 69.3 Lion Industries Corp Bhd 0.395 8.22 7,825.2 2.60 268.9 PNE PCB BHD 0.070 7.69 60.7 27.27 39.2 Avaland Bhd 0.290 7.41 13,108.1 141.67 422.5 Data as compiled on Sept 25, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA Holdings Bhd 0.005 -50.00 501.1 -66.67 32.3 Mlabs Systems Bhd 0.015 -25.00 1870 -25.00 21.7 TECHNA-X Bhd 0.015 -25.00 133.5 -40.00 33.2 Focus Dynamics Group Bhd 0.015 -25.00 3076.7 -25.00 95.6 TWL Holdings Bhd 0.025 -16.67 3271.3 -28.57 117 Ivory Properties Group Bhd 0.070 -12.50 248.2 -12.50 34.3 Icon Offshore Bhd 0.115 -11.54 105,184.0 21.05 311.3 Green Packet Bhd 0.040 -11.11 540.3 -27.27 79.8 Avillion BHD 0.045 -10.00 1,301.5 -43.75 51.0 Permaju Industries Bhd 0.045 -10.00 357.7 0.00 87.5 Hong Seng Consolidated Bhd 0.045 -10.00 991.8 -79.55 229.9 Citra Nusa Holdings Bhd 0.050 -9.09 679.0 -23.08 36.0 Khee San BHD 0.150 -9.09 7.0 7.14 20.6 DGB Asia Bhd 0.160 -8.57 9,526.0 6.67 30.1 Trive Property Group BHD 0.060 -7.69 205.9 -14.29 75.8 Majuperak Holdings Bhd 0.300 -7.69 542.0 20.00 85.3 Esthetics International Group 0.305 -7.58 82.4 -1.61 72.3 Netx Holdings Bhd 0.125 -7.41 21,026.3 108.33 114.9 Classita Holdings Bhd 0.065 -7.14 8,772.2 -82.19 80.1 TechnoDex Bhd 0.065 -7.14 355 -35 54.8 Data as compiled on Sept 25, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Carlsberg Brewery Malaysia 19.860 -0.260 124.8 -13.20 6,072.2 HextarTechnologies Solutions 24.000 -0.200 1.2 40.68 3,087.6 Nestle Malaysia Bhd 128.800 -0.200 31.1 -8.00 30,203.6 British American Tobacco 9.330 -0.170 244.3 -16.84 2,664.0 D&O Green Technologies Bhd 3.400 -0.120 3,395.0 -20.56 4,210.0 Malaysia Airports Holdings 7.200 -0.100 3,108.5 9.76 12,013.6 PPB Group Bhd 15.500 -0.100 295.2 -11.12 22,050.3 CELCOMDIGI BHD 4.400 -0.100 3,448.5 10.00 51,618.6 United Plantations BHD 17.100 -0.100 156.6 13.92 7,092.8 Kuala Lumpur Kepong Bhd 21.300 -0.080 595.0 -4.74 22,970.7 HAP Seng Consolidated Bhd 4.630 -0.080 3,496.6 -27.66 11,527.2 Dutch Lady Milk Industries BHD 22.520 -0.080 13.9 -25.53 1,441.3 Pentamaster Corp Bhd 5.180 -0.070 427.8 16.93 3,684.6 United Malacca Bhd 5.030 -0.070 8.5 -8.55 1,055.1 Imaspro Corp Bhd 5.580 -0.070 335.5 -4.62 446.4 Petron Malaysia Refining 4.630 -0.060 74.8 6.93 1,250.1 Petronas Dagangan Bhd 22.900 -0.060 388.2 0.23 22,750.1 KLCCP Stapled Group 6.730 -0.060 47.1 0.30 12,149.9 CIMB Group Holdings Bhd 5.540 -0.050 7,969.8 -4.48 59,084.7 Cypark Resources Bhd 1.040 -0.050 34803.8 121.28 817.4 Data as compiled on Sept 25, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Heineken Malaysia Bhd 24.560 0.600 244.4 -2.54 7419.5 Panasonic Manufacturing 19.380 0.400 6 -15.37 1177.3 Knusford BHD 0.810 0.200 397.9 35.00 80.70 AEON Credit Service M Bhd 11.480 0.120 174.1 -8.74 2930.9 Quality Concrete Holdings 1.130 0.090 0.6 -14.39 65.50 Mega First Corp BHD 3.410 0.090 714.8 2.71 3214.8 Hong Leong Financial Group 17.860 0.080 193.9 -3.98 20454.1 Mesiniaga Bhd 1.290 0.070 6.7 -19.88 77.9 Pintaras Jaya BHD 1.630 0.070 116.2 -21.63 270.4 Ralco Corp BHD 0.840 0.065 131.200 -2.3 42.70 Ancom Nylex Bhd 1.180 0.060 8138 14.56 1122.1 Sunway Construction Group 1.930 0.050 939.2 23.72 2488.5 Scientex Packaging Ayer Keroh 2.350 0.050 53.1 -2.08 824 Berjaya Assets BHD 0.345 0.050 3372.2 18.97 882.6 Analabs Resources BHD 1.580 0.050 7.5 14.49 172.1 ITMAX SYSTEM Bhd 1.800 0.050 21669.2 26.76 1850.9 Wellcall Holdings Bhd 1.490 0.050 2259.6 31.86 741.3 Rapid Synergy Bhd 23.840 0.040 154.9 49.37 2548.4 Puncak Niaga Holdings Bhd 0.410 0.040 29022.9 74.47 183.4 Maxis Bhd 4.080 0.040 930 6.25 31954.9 Data as compiled on Sept 25, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 33,963.84 -106.58 -0.31 S&P 500 * 4,320.06 -9.94 -0.23 NASDAQ 100 * 14,701.10 6.86 0.05 FTSE 100 * 7,683.91 -39.35 -0.51 AUSTRALIA 7,076.53 7.69 0.11 CHINA 3,115.61 -16.83 -0.54 HONG KONG 17,729.29 -328.16 -1.82 INDIA 66,022.66 13.51 0.02 INDONESIA 6,998.38 -18.46 -0.26 JAPAN 32,678.62 276.21 0.85 KOREA 2,495.76 -12.37 -0.49 PHILIPPINES 6,172.84 30.05 0.49 SINGAPORE 3,215.40 10.58 0.33 TAIWAN 16,452.23 107.75 0.66 THAILAND 1,507.36 -15.23 -1.00 VIETNAM 1,153.20 -39.85 -3.34 Data as compiled on Sept 25, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,715.0034.00 OIL US$ 93.700.43 RM/USD 4.6865 RM/SGD 3.4309 RM/AUD 3.0111 RM/GBP 5.7309 RM/EUR 4.9841
TUESDAY SEPTEMBER 26, 2023 28 THEEDGE CEO MORNING BRIEF OP22 / OPTIONS / MALAYSIA september 18, 2023 No, we are not only referencing watches that can display the hours and minutes in multiple time zones simultaneously, but rather adopting the broad vision of seeing the world with your trusted Chanel J12. You can’t imagine a better travelling companion. PhotograPhy Soon Lau | StyLing Sarah Saw World timerS
TUESDAY SEPTEMBER 26, 2023 29 THEEDGE CEO MORNING BRIEF MALAYSIA september 18, 2023 / OPTIONS / OP23 SJ12 Cybernetic x Lecce, Italy Sitting serenely at the heel of Italy’s proverbial boot in the region of Puglia, baroque enthusiasts have long nicknamed Lecce the ‘Florence of the south’. It gets this title from the unique deposits of Lecce stone, whose unique property makes it soft, malleable and easy to work on when taken from the tajate (quarry) but hardens once exposed to the elements. The talented zoccaturi (stone masons) have been carving the most ornate patterns and wonderful designs onto the pietra Leccese for centuries now, giving the great historic buildings of the city a delicate lace-like beauty. In contrast to the intricate, otherworldly beauty of delicate Lecce stone, the J12 Cybernetic watch is crafted from highlyresistant ceramic and steel case and exudes a futuristic, science fiction vibe. Having made its debut at Watches and Wonders 2023, the 38mm J12 Cybernetic pushes boundaries with its strong pixelated concept and jagged-edged design on the right side of the watch face.
TUESDAY SEPTEMBER 26, 2023 30 THEEDGE CEO MORNING BRIEF OP24 / OPTIONS / MALAYSIA september 18, 2023 J12 Calibre 12.2 x Amsterdam, Holland In the design world, going Dutch is actually quite a compliment. Beginning with Hendrik Petrus Berlage, widely hailed as the father of modern Dutch architecture, and now with modern-day masters like Jacob van Rijs and Rem Koolhaas, nothing remains as iconic as the humble, sometimes-awkward looking, narrow canal house that is a feature of Amsterdam. Characterised by overhanging eaves, heavy doors and gambrel roofs, another common design aspect of these houses, especially the historic ones, is that they are all built and balanced on wooden poles that have been sunk deep into the marshy ground of the low-lying Dutch capital. Evoking purity and brilliance, the white ceramic and steel J12 Calibre 12.2 is a trustworthy companion for anyone who appreciates stellar design. And just like the new generation of Dutch Masters who express themselves via architecture and not painting, the J12 Calibre 12.2 is a perfect study of design, balance, classicism and functionality. The movement is self-winding while the power reserve ranges from between 38 to 70 hours, depending on the exact model.
TUESDAY SEPTEMBER 26, 2023 31 THEEDGE CEO MORNING BRIEF MALAYSIA september 18, 2023 / OPTIONS / OP25 J12 Paradoxe x Fes, Morocco Marrakech might be the more glamorous destination, quite possibly due in part to the 1960s international jet-set like John Paul Getty and his boho-chic wife Talitha, but Fes, located northwest of the Atlas Mountains and believed to be the oldest city in Morocco, is the grittier, more authentic deal. Its ancient, maze-like medina, called Fes el Bali, and a Unesco World Heritage Site, is studded with palaces, madrasahs, fondouks and mosques. The narrowness of its passageways, always teeming with life, is, naturally, a pedestrian zone. The only kind of problematic congestion you might encounter is that of a bad-tempered beast of burden, most likely a donkey. There is no better time than now to plan a journey to the Maghreb. Battered by recent earthquakes, its tourism industry needs the world’s support and has called for anyone planning a visit to not cancel or change their plans. In times of turbulence, a steady and strong timekeeper is your best friend. And as the heart of the J12 Paradoxe beats with the thump of the Calibre 12.1, a self-winding movement with date indicator and power reserve of between 38 to 70 hours, you can’t ask for a better travelling companion, regardless of the destination.
TUESDAY SEPTEMBER 26, 2023 32 THEEDGE CEO MORNING BRIEF OP26 / OPTIONS / MALAYSIA september 18, 2023 J12 Phantom x Chiang Rai, Thailand Smaller and not as frenetic a tourist destination as its northern sister city of Chiang Mai, Chiang Rai, just 150km away, is renowned for its quieter pace, where cultural bursts often comprising temple visits (this is where you would find the famous and famously-ornate Wat Rong Khun or White Temple) are tempered by invigorating dips in waterfalls, treks through green jungles or tea plantations or relaxing soaks in natural hot springs. Its proximity to the Golden Triangle, the mountainous point populated by hill tribes and where the borders of Thailand, Myanmar and Laos meet, at the confluence of the Ruak and Mekong Rivers, is one of the main draws for visitors as well. Life is all about contrasts. So, to offset the milky brilliance of Wat Rong Khun, opt for the midnight-hued 38MM J12 Phantom. Although its name alludes to an otherworldly quality and a spectral-like gift to hide under a cloak of mystery, the J12 Phantom, crafted from highly-resistant black ceramic and steel, has a hardy and palpable presence you will not be able to miss – or ignore.
TUESDAY SEPTEMBER 26, 2023 33 THEEDGE CEO MORNING BRIEF MALAYSIA september 18, 2023 / OPTIONS / OP27 J12 Comic + J12 Interstellar x Kochi, India A trading port since the 1300s, Kochi, formerly known as Cochin, is a jewel of India’s famed Malabar Coast was not named the ‘Queen of the Arabian Sea’ for nothing. An important component of the known world’s maritime trade then, Cochin is also a jumping-off point for Kerala’s famed backwaters, a network of serene waterways, canals and brackish lagoons where a houseboat cruise on a traditional kettuvallam is the order of the day. Another charming sight that pays tribute to Kochi’s heavy dependence on the sea is that of stationary fishing nets nicknamed ‘Chinese fishing nets’ as local folklore attribute the great admiral Zheng He for its introduction. Evoking the Malabar Coast’s magnetic allure for voyagers, the J12 Cosmic and J12 Interstellar watches invite you to traverse the world just like the old explorers did – from looking to the stars in the heavens for guidance. Like the duality of the mythical twins, Castor and Pollux, the Cosmic and Interstellar J12s are like night and day. Although different, the two timepieces are bonded via stunning dials that deserve hours of quiet admiration. The former, measuring at a daintier 33mm, is adorned with 12 brilliant-cut diamonds, polished rhodium-plated stockers and a white dial with Super-LumiNova with blue luminescence, while the latter, measuring at 38mm has an aventurine effect black glittery lacquered dial and six brilliant-cut diamonds. Both, however, fittingly reflect the heavens beautifully.
TUESDAY SEPTEMBER 26, 2023 34 THEEDGE CEO MORNING BRIEF OP28 / OPTIONS / MALAYSIA september 18, 2023 JJ PEvsoanGAvValaRenpowalfoasCdainEcthfu12minsiwreexlaJ12 GMT x Korcula, Croatia Set on the shimmering Dalmatian Coast, the Croatian island of Korcula is renowned for many things: its picture-perfect medieval old town often liked to a miniDubrovnik; it boasts a long and rich tradition of gastronomy; and it is the fabled birthplace of the great adventurer and explorer, Marco Polo. One of best ways to enjoy this part of the world is by chartering a little sail boat that will take you in and around the Peljesac and Korcula Channels and where the morning Levanat, a mild eastern wind, will ensure smooth and pleasurable days out on the water. Croatia’s famously azure waters need to be set off with a sharp pop of obsidian black, as the matte black ceramic and steel J12 GMT demonstrates. Boasting an attention-arresting 41mm black lacquer dial with rhodium-plated numerals and a 24-hour time zone on the flange, the J12 GMT is certain to be your best travel companion – on land, on sea and in the air.
TUESDAY SEPTEMBER 26, 2023 35 THEEDGE CEO MORNING BRIEF MALAYSIA september 18, 2023 / OPTIONS / OP29 J12 33mm + J12 Calibre 12.1 x Provence, France Evocative and magical, Provence in the French south is rich in history and culture. From Avignon and its fantastic medieval Papal Palace (the largest Gothic palace to be built) and the so-called Bridge of Avignon or Le Pont Saint-Benezet, to Arles and its Van Gogh links and ancient Roman amphi-theatre, lavender and sunflower fields and wines of the Rhone, few lands are as picturesque or diverse as this endlessly beautiful region. A short but compelling poem to memorise before stepping foot here would be Horses on the Camargue by Roy Campbell although the area is also known as a large nesting site for pink flamingoes. Ancient and noble, historians have long associated Provence with its wild and majestic Camargue horses. Although technically born black or dark brown, the horses’ coats eventually transform into snowy white by the time they reach adulthood. Echoing this colour of purity, the classic form of the Chanel J12 33mm is infused with the high-tech function of the COSC Automatic Kenissi Calibre 12.2. Combining state-of-the-art ceramics and the maison’s iconic aesthetics, it is a timepiece worth investing in. The J12 Calibre 12.1, in a heftier 38mm size meanwhile, likewise comes equipped with a selfwinding mechanical movement. Its strong and highlyresistant ceramic and steel case is a vision in white as expected but with the added adornment of a white lacquer dial set with 12 diamond indicators.