TheEdge 030322

EPF DECLARES DIVIDEND OF 6.10% FOR 2021,
ABOVE PRE-PANDEMIC 2019 p2

THURSDAY, MARCH 3, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 340/2022

CEOMorningBrief
HOME: Khazanah says profit from operations fell to RM670m in 2021 from RM2.9b in 2020 p4
Roger Ng trial:Wife sought Jho Low and Najib’s help to secure Ng’s release in
Singapore; resorted to coded WeChat messaging with Tim Leissner p8

Six largest Malaysian banks’ collective market cap surges over RM118b in two years p11
WORLD: OPEC+ makes modest supply hike as Russia turmoil lifts price p22

Powell sees Fed rate lift-off in March
while Ukraine fogs outlook

Report on Page 19.

LOW YEN YEING/THE EDGE

After first net withdrawal
in 20 years of RM58b
in 2021, EPF vows to
go back to rebuilding
members’ savings

Report on Page 3.

thursday march 3, 2022 2 TheEdge CEO morning brief

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EPF declares EPF total dividend payout hits new all-time high of
dividend of 6.10% RM56.7 billion in 2021

for 2021, above Payout ratio (%) 6.35 6.40 6.90
pre-pandemic 6.75
5.80 5.65 6.00 6.15 6.1
2019 5.90 5.455.20
4.50 5.00 5.80 6.15 5.70 6.40
by Cindy Yeap 5.65
theedgemarkets.com 4.75 5.15 4.50 5.004.90

KUALA LUMPUR (March 2): The Em- 4.25
ployees Provident Fund (EPF) declared a
6.10% dividend for conventional savings and 56.7
5.65% dividend for shariah savings for 2021
— beating the 5.45% (conventional) and 5% 48.13 47.32 45.82 47.64
(shariah) declared in pre-pandemic 2019.
Shariah savings 36.66 38.24 37.08
Total dividends declared hit a new all-
time high of RM56.72 billion (RM50.45 Conventional savings 24.47 27.45 31.20
billion conventional and RM6.27 billion
shariah) despite unprecedented Cov- 7.74 8.96 10.29 11.88 13.42 16.79 14.29 19.37 21.61
id-19-related withdrawals hitting growth
in its fund size, beating the previous all- ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21
time high of RM48.13 billion in 2017. Source: EPF, The Edge estimates
Total distributable income was RM57.1
billion (RM50.8 billion conventional and In its statement, the EPF said it saw its less than RM10,000 in their accounts.We
RM6.3 billion shariah), EPF’s presenta- first-ever negative net contributions (where hope that this dividend and our continued
tion slides showed. withdrawals exceeded contributions) in 20 performance will help us begin the pro-
years of RM58.2 billion in 2021 but did cess of rebuilding our members’ retirement
The EPF’s 2021 dividend rate is not not provide a breakdown of gross contri- savings, as economic recovery takes shape
only significantly higher than 2020’s rate butions and withdrawals for the year. At over the course of the year,” EPF chairman
of 5.2% and 4.9% but also tops the five a briefing on Wednesday, EPF CEO Da- Tan Sri Ahmad Badri Mohd Zahir said in
sen per unit income distribution by Per- tuk Seri Amir Hamzah Azizan said that a statement dated March 2.
modalan Nasional Bhd’s flagship Amanah the fund had prematurely taken profit on
Saham Bumiputera (ASB) for 2021. some investments and brought back RM22 For a three-year period, real (inflation-ad-
billion from abroad to cater to the sizeable justed) returns were 4.91% for its convention-
According to the EPF, its overall invest- Covid-19-related withdrawals last year. al portfolio and 4.51% for shariah savings —
ment assets grew to RM1.008 trillion in surpassing its target of beating inflation by 2%
2021, up 0.8% year-on-year from RM1 Some 7.3 million EPF members had ap- over a rolling three-year period.The EPF said
trillion in 2020. In February 2021, the plied for at least one or all three of the Cov- dividend payout for each savings were arrived
EPF said its overall investment assets grew id-19-related special withdrawals — i-Le- at from total gross realised investment income
7.9% to RM998 billion from RM924.75 stari, i-Sinar and i-Citra — that collectively for the year “after deducting net impairment
billion in 2019. saw RM100.9 billion withdrawn from the on financial assets, cost write down on list-
EPF between April 2020 and February ed equities, unrealised losses due to foreign
The significantly slower growth in its 2022, EPF data show. The amount not exchange rate and derivative prices, invest-
total investment assets, despite strong in- saved with the EPF rises to RM110 bil- ment expenses, operating expenses, statutory
vestment performance, was owing to Cov- lion when including the RM9 billion that charges, as well as dividend on withdrawals”.
id-19-related withdrawals, including the was released to members because of the
unprecedented i-Sinar Account 1 with- reduction in employees’ statutory contri- How EPF investments fared in 2021
drawals totalling RM58.7 billion. bution rate (from 11% to 7% from April Total gross investment income was RM67.06
to December 2020, and from 11% to 9% billion in 2021, up 6% from RM63.45 billion
from January 2021 to June 2022). in 2020,“driven by a progressive recovery in
the equities market and most asset classes
“The RM101 billion pandemic-relat- amid the global rebound”.
ed withdrawals since the year 2020 had
resulted in 48% of EPF members having continues on Page 3

thursday march 3, 2022 3 TheEdge CEO morning brief

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After first net EPF investment assets & gross income
withdrawal in 20
years of RM58b 1200 Total investment Gross investment 80
assets (RM bil) income (RM bil) 60
in 2021, EPF 40
vows to go back 800 63.45 67.06 20
0
to rebuilding 53.14 49.44 50.90
members’ savings
400
by Adam Aziz
theedgemarkets.com 791.48 836.54 927.89 1,000.37 1,008
2018 2019 2020 2021
0

2017

KUALA LUMPUR (March 2): The main billion), i-Sinar (RM58.7 billion), i-Citra bution in 20 years of RM58.2 billion in 2021.
takeaway from the Employees Provident (RM21.4 billion) and RM9 billion savings EPF also saw the repatriation of RM22
Fund’s (EPF) 2021 performance briefing losses from employees who had opted to have billion worth of foreign investments over the
was this: EPF is reverting to its mandate of their monthly contributions reduced from a two years to help with liquidity strain from
helping contributors build their retirement set 11% contribution. the withdrawals.
savings following massive withdrawals to cope “We had to take cognisance of the fact
with the fallout of Covid-19. The emergency measures resulted in 6.1 that we did not want to rattle the local mar-
million or around half of EPF members hav- ket [instead].
Indeed the estimated RM110 billion with- ing less than RM10,000 in their accounts — a “Some of the investments, I must admit,
drawn by contributors in 2020 and 2021 considerable jump of 28% from 4.7 million were not at the stage of s6ma7iad.t.0u6rity, but we
using various Covid-19 measures related to members as of April 2020. needed the liquidity,” he
the fund resulted in EPF recording its first Despite the net withdrawals, the fund de-
ever negative net contribution in 20 years Furthermore, 2.6 million members now clared a dividend of 6.1% for conventional
of RM58.2 billion. Moreover, RM22 billion have less than RM1,000 in EPF savings — savings, and 5.65% for shariah savings —
worth of foreign investments had to be re- a drastic 86% increase from 1.4 million as both higher than 2019 levels.
patriated back to Malaysia over 2020-2021 of April 2020. In 2021, EPF investment assets grew 0.8%
to help with liquidity strain from the hu- to RM1.008 trillion,from RM1 trillion in 2020.
mongous withdrawals even though some of The retirement fund, which played a Asset allocation was led by fixed income
the investments had yet to reach maturity. key role in providing support measures to instruments (45%), followed by equities
its contributors during the pandemic, hopes (44%), money market instruments (5%),
Emergency withdrawals and a lower man- an end will be put to emergency withdrawals and real estate and infrastructure (6%).
datory contribution rate since the pandemic as domestically almost all economic activities From RM63.45 billion in 2020, gross in-
have “set back 10 years” worth of savings have been allowed to resume.The last of the vestment income rose 5.69% year-on-year
among its members, said the fund’s chief emergency withdrawals, i-Citra, ended last to RM67.06 billion comprising income
executive officer Datuk Seri Amir Hamzah. month (February 2022). from equities (58.05%), fixed income in-
struments (29.08%), real estate and infra-
At the EPF 2021 performance brief- Moving forward, Amir called for the pub- structure (11.47%), and money market in-
ing, Amir pointed out that 27% of active lic to subscribe to voluntary additional con- struments (1.4%).
EPF contributors have basic savings (of tribution capped at RM60,000 per year, or a
RM240,000), but that benchmark was al- voluntary increase in monthly contribution Read also: EPF optimistic about Malaysia’s
ready reached in 2012. rate above the compulsory 11% to speed up recovery, allocates RM1b for pre-IPO com-
replenishment of funds. panies Click here
“Now the role of EPF is really to focus on
rebuilding [the members’ savings],”Amir said. RM58b net withdrawals in 2021
Although Amir said EPF was not impacted
In total, EPF estimated an impact of by the withdrawals apart from its liquidity, the
RM110 billion from the fund’s Covid-19-re- fund recorded its first ever negative net contri-
lated measures, namely i-Lestari (RM20.8

from Page 2 last year. In line with the broad recovery in set base but 12% of gross investment in-
the equities market, the EPF said it only come, continued to be a good inflation
Overseas investments, which account saw the need to write down RM1.15 bil- hedge. Return on investment (ROI) for
for 37% of its assets but contributed 56% lion from its listed equity portfolio in 2021, the segment was 6.53%, 184 basis points
of overall returns, “were critical contribu- significantly lower than RM7.71 billion above the 4.69% ROI for its fixed-income
tors to its overall performance”. in 2020. portfolio.

The continued market recovery in 2021, Fixed income, which made up 45% of Conversely, money markets, which ac-
particularly in developed markets, provided its investment assets, contributed RM19.5 count for 5% of investment assets and al-
EPF the opportunity to realise some profits. billion or 29% of the EPF’s gross invest- low liquidity management, only brought
ment income in 2021. in 1% of gross investment income in 2021.
Equities, particularly foreign-listed eq-
uities, continued to be a key driver for re- Its real estate and infrastructure port- Dividends for 2021 will be reflected in
turns — delivering RM38.93 billion or folio, which accounted for 6% of its as- members’ accounts by Sunday (March 6).
58% of the EPF’s gross investment income

thursday march 3, 2022 4 TheEdge CEO morning brief

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Khazanah says profit from operations fell
to RM670m in 2021 from RM2.9b in 2020

KUALA LUMPUR (March 2): Khazanah by Ahmad Naqib Idris The statement said Amirul Feisal during
Nasional Bhd said on Wednesday (March theedgemarkets.com the event also presented Khazanah’s long-term
2) its profit from operations fell to RM670 strategies that reaffirm the sovereign wealth
milion in 2021 from RM2.9 billion in 2020 the previous year, while its realisable asset fund’s commitment to advancing Malaysia’s
mainly due to continuing financial assis- value over debt ratio remained healthy at economy and society through Khazanah’s new
tance extended to the group’s airline and 2.8 times,” Khazanah said. Dana Impak allocation which aims to, among
tourism companies still weathering head- others, catalyse new growth sectors and play
winds from the impact of Covid-19 pan- Khazanah via Malaysia Aviation Group a more active institutional stewardship role.
demic-driven movement restrictions. Bhd owns Malaysia Airlines Bhd, accord-
ing to the sovereign wealth fund’s website. “New growth sectors will be catalysed via
In a statement, Malaysian sovereign the Dana Impak allocation of RM6 billion
wealth fund Khazanah said its net asset Meanwhile,Khazanah undertakes its tour- over five years,” the statement said.
value (NAV), however, grew to RM86 bil- ism operations via Themed Attractions Re-
lion from RM79 bilion and that Khazanah sorts & Hotels Sdn Bhd, the website shows. Fund outlines four strategic imperatives
declared a dividend of RM2 billion to the Looking ahead, Khazanah said its had set four
Malaysian government for 2021. Khazanah managing director Datuk strategic imperatives to deliver sustainable
Amirul FeisalWan Zahir said in theWednes- value for Malaysians. Khazanah’s four stra-
“[2021] profit was also impacted by low- day statement, which was issued to report- tegic imperatives are coined under the phras-
er fair value gains and lower dividend in- ers covering the press conference, that de- es “advancing Malaysia”, “building on our
come from investee companies on the back spite the challenging backdrop of movement financial strength”, “creating a sustainable
of subdued 2020 earnings. restrictions and reduced economic activity future” and “developing a winning team.”
globally, Khazanah managed to create val-
“Khazanah deployed RM8.7 billion in ue, generate strong investment returns and The “advancing Malaysia” imperative will
new investments in 2021, with a signifi- grow its NAV by RM7 billion. see Khazanah undertaking four key initiatives
cant portion invested in Malaysia (41.7% to deliver impactful outcomes for the nation,
or RM3.6 billion) and raised RM4.8 billion “We also continued our rebalancing ef- according to Khazanah.
from monetisation of assets in its portfolio. forts towards having a more diversified port-
folio and undertook measures to support “Dana Impak will invest in catalytic sectors
“Khazanah continues to maintain its fi- our investee companies that were most im- that strengthen the country’s resilience and
nancial discipline. Operating expenses were pacted by Covid-19, namely in the aviation open new growth opportunities. Six themes
reduced to RM420 million from RM490 and tourism sectors,” said Amirul Feisal, have been identified,namely the digital society
million in 2020. Debt increased marginal- who hosted onWednesday his first Khazan- and technology hub, quality health and edu-
ly to RM48 billion from RM43 billion in ah annual briefing as its managing director. cation for all, decent work and social mobili-
ty, food and energy security, building climate
NAV growth (RM billion) resilience, and competing in global markets.

RM53 billion (CAGR¹: 5.8%) 86 RM17 billion “[Being an] active participant in Malaysia’s
33 Cumulative Dividends capital markets, spurring economic growth.
paid to Government of
2004 Malaysia “Represent Malaysia through its global
Compounded Annual Growth Rate investments and partnerships to facilitate
RM70 billion flows of knowledge, networks and invest-
Sources: Khazanah Nasional Bhd, Advancing Malaysia Cumulative ment opportunities.
Shareholder Return
“Build capacity and develop vibrant
2021 communities for the benefit of Malay-
sians,” Khazanah said.
INVESTMENTS Commercial Fund RM1.6 billion RM3.1 billion
Strategic Fund Meanwhile, the “building on our financial
RM8.7 billion RM0.6 billion strength” imperative is core for Khazanah,
and it said it does this through a well-diver-
RM3.4 billion sified portfolio that can achieve its long-term
risk-adjusted return targets, as well as main-
Public Private Real Assets taining financial discipline.

RM0.8 billion “Khazanah will also look to turn around
some of its assets, especially those facing not
MONETISATION Khazanah Total RM3.3 billion only the impact of the pandemic but also
Public Private structural issues in the sector,” it said.
RM4.8 billion Real Assets RM0.7 billion
The “creating a sustainable future” imper-
Sources: Khazanah Nasional Bhd, Advancing Malaysia ative is the third strategy that will see Khazan-
ah embed environmental, social and govern-
ance (ESG) considerations into everything it
does, from how the organisation makes in-
vestment decisions to how its employees go
about their daily work, Khazanah said.

continues on Page 5

thursday march 3, 2022 5 TheEdge CEO morning brief

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KUALA LUMPUR (March 2): Khazan- Khazanah to situation assets with distinct return expec-
ah Nasional Bhd managing director Da- consolidate tations and priorities.
tuk Amirul Feisal Wan Zahir said the sov- commercial
ereign wealth fund will be consolidating and strategic The RM120.3 billion RAV investment
its funds into a single diversified portfo- funds into single portfolio now consists of public equities
lio with a realisable asset value (RAV) of diversified in developed markets, such as US-listed
RM124.8 billion as part of its new “ad- portfolio of PalantirTechnologies Inc, SoFiTechnolo-
vancing Malaysia” strategy. He announced RM124.8b in RAV gies Inc and German-listed Auto1 Group
this at Khazanah’s Annual Review 2022 SE, as well as real assets and private eq-
event on Wednesday (March 2). by Seah Eu Hen uities.
theedgemarkets.com
The move to consolidate Khazanah’s Notably, Khazanah chief investment of-
previously segregated commercial and stra- Patrick Goh/The Edge ficerTengku Datuk Seri Azmil Zahruddin
tegic funds is core to building financial Raja Abdul Aziz explained that its invest-
strength of the sovereign wealth fund to The move to consolidate Khazanah’s previously ments in global public markets under the
deliver sustainable value for Malaysians, segregated commercial and strategic funds commercial fund (now the investment
according to Amirul Feisal. is core to building financial strength of the portfolio), whose returns declined to 1.6%
sovereign wealth fund to deliver sustainable in 2021 compared with 26.2% in 2020,
“Companies likeTelekom Malaysia Bhd was affected by its exposure to public eq-
(TM), Malaysia Airports Holdings Bhd value for Malaysians, according to Amirul Feisal uities in China, which remains one of the
and et cetera, we do demand commercial at Khazanah’s Annual Review 2022 event on sovereign wealth fund’s key focus markets
returns regardless. Wednesday (March 2). amid the regulatory scrutiny of the tech-
nology sector in the world’s second-largest
“The [answer to the] question of what them, which limits the shareholding, but economy last year.
is strategic or not strategic will depend beyond that we continue to rebalance the
on who you ask. It is easier for us to put portfolio in order to our resilience and fi- On the other hand, he added that the
everything into one and within that, there nancial strength,” Amirul Feisal added. developmental assets portfolio of RM4.5
are different asset classes that you see de- billion in RAV will hold long-term devel-
pending on performance. Khazanah’s overall portfolio moving opment investments with the potential
forward will consist of four portfolios, to deliver high economic impact, while
“What we are working towards is a stra- namely the investment portfolio, the Dana its special situation assets will hold as-
tegic asset allocation that tries to get max- Impak portfolio (with a RM6 billion allo- sets that require a turnaround in terms of
imised returns based on the risk appetite cation), developmental assets and special profitability and sustainable operating cash
that we have,” Amirul Feisal shared. flows, such as Malaysia Aviation Group
Bhd (MAGB).
Meanwhile, he added that despite the
aggregation of funds, the sovereign wealth When asked by The Edge if any cap-
fund will still need to work with the gov- ital was deployed under the socio-eco-
ernment to decide on the sale of any assets nomic-focused RM6 billion Dana Impak
with national interest. portfolio, Amirul Feisal said that the fund
is in its early stages as it had only been ap-
“For example, certain assets which are proved by Khazanah’s board in November
deemed needed to be held like TM. Now last year but noted that there are poten-
for certain assets, that is where we will tial investments in the pipeline to be an-
work towards whether or not we can re- nounced when confirmed.
duce our stake. But I have to mention that
this is evolving. No plans for major asset sale
Asked if there are any plans to sell MAGB,
“As an example, the banking industry Amirul Feisal said that there are no plans
is strategic but does not have to be safe- to partner with any airlines but to focus
guarded by the shareholding of a key play- on the airline’s operations, noting that the
er. Financial stability is highly strategic but restructuring gave Khazanah an opportu-
it is actually governed by the central bank nity to reset the balance sheet, pointing to
not necessarily through share ownership. the RM15 billion reduction in liabilities.
There are various ways [to safeguard na-
tional interest] and this is evolving. co nt i nues o n Page 6

“We have to work with the government
to determine what is national interest for

from Page 4 wards growth, emerging stronger as a na- Khazanah said the restructuring ena-
tion. We truly believe that Khazanah’s re- bles Malaysia Aviation Group to be more
“We also hope to play a leading role freshed strategy will allow us to achieve this, financially resilient and readies its airline
in shaping an equitable and responsible and to this end, we call upon our fellow Ma- operations for the anticipated recovery
ESG transition for Corporate Malaysia,” laysians to join us on this journey towards in air travel.
the sovereign wealth fund said. advancing Malaysia,” Amirul Feisal said.
“Khazanah maintained support for its
Khazanah said the “developing a winning Looking back, Khazanah said that de- developmental assets, such as Themed
team” imperative is crucial in delivering Khaz- spite the Covid-19 pandemic-driven chal- Attractions Resorts & Hotels and Iskan-
anah’s purpose by instilling a culture of high lenging conditions, Khazanah achieved dar Malaysia, through capital injections in
performance and collaboration, equipping em- several milestones, including the timely 2021, and is currently working with the
ployees with future-proofed skill sets and adopt- completion of Malaysia Aviation Group’s management of those companies to develop
ing new technologies in Khazanah’s daily work. restructuring which saw the reduction of and execute strategies for business recovery
RM15 billion in liabilities. and sustainability,” Khazanah said.
“We must continue to rally together and
take this opportunity to chart a path to-

thursday march 3, 2022 6 TheEdge CEO morning brief

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PUTRAJAYA (March 2):Twenty-two out 22 out of 45 Covid-19 cases and vaccination
of 45 deaths involving recipients of the deaths involving progress in Malaysia
Covid-19 booster dose that were report-
ed to the National Pharmaceutical Regu- recipients of On Mar 1, 2022 78
latory Agency (NPRA) were found to be booster dose 293,651
unrelated to the vaccine. found not related Daily Covid-19 deaths 101,038
73,262
NPRA director Dr Roshayati Moham- to vaccine Active cases
ad Sani said the findings were made by 97.5
the Covid-19Vaccine Pharmacovigilance Bernama Daily vaccine doses administered
Special Committee (JFK) after assessing 62.6
the report on the death of the 22 cases. of Covid-19 vaccine could lodge a report Daily booster administered
themselves to the NPRA without waiting
She said the report on the death of the for confirmation from a doctor. % of adult population received
remaining 23 cases were still in the process two-dose vaccination
and would be tabled for evaluation by JFK She said this followed claims that there
when completed. were doctors who were reluctant to con- % of adult population received
firm that patients who sought follow-up booster shots
As of Feb 25, he said NPRA had re- treatment after the Covid-19 vaccine had
ceived 25,445 reports of adverse effects fol- AEFI issues. On Mar 1, 2022
lowing immunisation (AEFI) of the Cov-
id-19 vaccine, of which 93% or 23,682 of “Even if the treating doctor does not Number of new cases 25,854
them were non-serious cases, while 1,763 suspect and does not report the patient’s
reports were categorised as serious AEFI. AEFI to the NPRA, the patients who Local cases 25,406
feel they are affected by the vaccine can
Of the total reports, NPRA received report it through the NPRA channel,” Imported cases 448
1,275 AEFI reports involving booster dose, she said.
with 90 cases or 7.06% of the AEFI re- Category 1 and 2 patients 25,702
ports classified as serious, she said at a (no symptoms, mild symptoms) (99.41%)
joint media briefing on AEFI Covid-19
vaccine, which was conducted virtually on Category 3, 4 and 5 patients 152
Wednesday (March 2).
(with pnemonia, pneumonia requiring (0.59%)
Dr Roshayati said a total of 94 AEFI re-
ports involving vaccine recipients aged be- oxygen therapy, critical and requiring
tween five and 11-years-old were received
as of Feb 25, with only two reports cate- assisted ventilation)
gorised as serious
Number of new recoveries 25,548
She said the two serious cases involved a
five-year-old girl with severe asthma symp- Source: Ministry of Health
toms who was admitted to a hospital for
two days for treatment, and a 10-year-old Recipients of the Covid-19 vaccine who
boy who suffered from facial paralysis, but experience adverse effects can report the
is recovering. AEFI through the MySejahtera application
and online by filling in the Consumer Side
“Overall, the trend of AEFI reports in- Effect Reporting Form (ConSERF) through
volving children aged five to 11 years re- the NPRA website, www.npra.gov.my.
ceived by the NPRA is not much different Read also:
from what is reported by other regulatory
reference countries,” she added. Covid-19: 0.59% of new cases in
Categories 3 to 5, says Health DG
In another development, Head of the Click here
Pharmacovigilance Section, NPRA Com-
pliance and Quality Control Centre, Dr Booster deadline extension nothing
Azuana Ramli said individuals with AEFI to do with Johor polls, says Khairy
Click here

Covid-19: MoH to review, update
frontliners eligible for special
allowance, says Khairy Click here

from Page 5 Malaysia Bhd, the largest highway con- good thing for the country because then
cessionaire and operator, despite market you have a more vibrant and sustaina-
“At the same time, MAGB group chief rumours. ble business which is now connected to
executive officer Captain Izham Ismail has the semiconductor ecosystem in China,”
done very well in managing the cost and When asked by The Edge if the sale of Amirul Feisal said.
his plan now is to focus on operations to semiconductor foundry SilTerra to Dagang Read also:
ensure that yields are maintained and that NeXchange Bhd (DNeX) was a good idea Khazanah calls for reopening of
operationally, it remains profitable [and] coming to a year in, Amirul said that the international borders Click here
the borders need to open. sale was the right thing due to the nature
of the semiconductor industry. Khazanah says does not have exposure
“At the moment, it’s early days as all to Russian bonds, equities Click here
airlines are in the same position. The “When you actually look at the semi-
focus right now is the turnaround plan conductor industry, you need to be part
and focusing on operations,” Amirul of the whole ecosystem in order for peo-
Feisal said. ple to share technologies and ideas, which
requires huge investments.
The sovereign wealth fund chief also
said that there are no suitors for PLUS “At the end of the day, it is actually a

THURSDAY MARCH 3, 2022 7 THEEDGE CEO MORNING BRIEF

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thursday march 3, 2022 8 TheEdge CEO morning brief

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Roger Ng trial:Wife sought Jho Low
and Najib’s help to secure Ng’s release
in Singapore; resorted to codedWeChat

messaging withTim Leissner

by Hafiz Yatim bloomberg
theedgemarkets.com

KUALA LUMPUR (March 2): Roger Ng is also facing charges under the Capital Markets and Services Act 2007, in Kuala Lumpur.
Ng’s wife Lim Hwee Bin had sought the
help of fugitive businessman Jho Low and The former Goldman Sachs banker the Singapore authorities. Jho confirmed
then Malaysian prime minister Datuk Seri added that he was in the US when he got that he had spoken to Hwee Bin and that
Najib Razak to secure her husband’s re- the call and was concerned over it as here Geh had spoken to him and he was actu-
lease after he was detained in Singapore was his friend and colleague, who was part ally saying he was talking (actively) to the
in 2017. of the scheme, being interviewed by the Prime Minister Najib and the Attorney
authorities about exactly that scheme. General to seek Roger’s release,” he told
This was revealed byTim Leissner in his the NewYork court.
testimony in the trial against Ng in New “I was very concerned about what he
York onTuesday (March 1). The Edge has (Ng) was going to say. So, yes, I was very Rolle: Now, you have mentioned that
obtained the full transcript of Leissner’s interested — about what he was saying. At you spoke to Jho Low as well about Ng’s
testimony in front of a jury. that time, I was in the US and also being detention in Singapore?
subpoenaed,” he said.
It was also revealed that Leissner him- Leissner:Yes, sir.
self was detained for the first time by the Spoke to Jho Low, Geh who sought Rolle: And, again, why were you stay-
US Federal Bureau of Investigation (FBI) Najib’s help ing in communication with Jho Low about
on Feb 26, 2016 at JFK international air- Leissner said Hwee Bin also told him that that subject?
port in NewYork and again at the Nevada she spoke to Jho Low and also Terence Leissner: Because, again, we shared a
airport on March 14. Statements were tak- Geh, who was 1MDB’s deputy chief fi- concern that Ng had been put in this sit-
en and he was released. He was eventual- nancial officer and Ng’s close friend. Geh uation and that he was being questioned
ly arrested by the FBI in June, 2018 and is also a close confidante of Jho Low. about this very scheme that we were try-
charged. ing to hide and that we knew was illegal,
“She had spoken to both of those to so we shared the same concern. I was also
He also told the court that he, Ng and seek help from the Malaysian government trying to see if Jho, in fact, was, you know,
their wives were worried by the FBI in- to get Ng released in Singapore so there making an effort to get him out of Singa-
vestigation and had sought the help of a would be a government effort to get him pore and back to Malaysia, which he said
feng shui (Chinese geomancy) master in back to Malaysia.” he was doing, confirming what Hwee Bin
Hong Kong. had told me before, that he was speaking
“Jho, who I spoke to also, because we to the Prime Minister and the Attorney
Leissner, 50, who is the star witness in shared, again, the same concerns, as being General to seek his release.
the trial, said that sometime in 2017 he part of the scheme, Jho was very concerned
received a call from Hwee Bin, who was about what Ng was saying to the police and continues on Page 9
upset that Ng had been detained by the
Commercial Affairs Department (CAD)
of the Singapore police.

“Ng wasn’t allowed to leave Singapore
and his passport was taken. I got to know
this after receiving a call from Hwee Bin,
his wife who was very upset over the deten-
tion. I also received a call from Jho (Low)
as well who was very concerned that Ng
had been investigated in Singapore and
had to face questions there,” he added in
his testimony when questioned by prose-
cutor Drew Rolle.

According to Leissner, Hwee Bin told
her that her husband was keeping a tight
narrative and focused on the bond trans-
actions (in relation to 1MDB) and that he
was not releasing any information around
the scheme.

“She told me that her husband was also
minimising my role in this as much as pos-
sible,” he said in his testimony

thursday march 3, 2022 9 TheEdge CEO morning brief

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Hearing of Zahid Izzani Mohd Said/The Edge
Najib’s appeal to
adduce further Najib has indicated that he plans to hire a Queen’s counsel to argue his case in the apex court.
evidence remains
on March 15 as
apex court rejects
postponement bid

by Hafiz Yatim Federal Court deputy registrar Siti Ha- tion and the jail sentence of 12 years and
theedgemarkets.com jar Mustaffa, who case-managed the matter RM210 million fine imposed by the High
on Monday, did not make an immediate Court. It also described the SRC case as
PUTRAJAYA (March 2):The Federal Court decision on the request. a “national embarrassment”.
on Wednesday (March 2) rejected former
prime minister Datuk Seri Najib Razak’s ap- Najib is trying to adduce further evi- Najib was found guilty by the High
plication to postpone this month’s hearing of dence following the Malaysian Anti-Cor- Court of abuse of power in approving Re-
his appeal in the apex court to adduce further ruption Commission’s statement last No- tirement Fund (Incorporated) (KWAP)
evidence in relation to his SRC International vember that it was looking to repatriate loans of RM4 billion to SRC, and three
Sdn Bhd case. funds in the Singapore bank account of counts each of criminal breach of trust
Datuk Tawfiq Ayman — the husband of and money laundering of RM42 million
Hence, the hearing of the appeal will go former Bank Negara Malaysia governor belonging to SRC, of which he was also
ahead as scheduled on March 15 and 16, Tan Sri Dr Zeti Akhtar Aziz — that are the advisor emeritus.
Deputy Public Prosecutor Mohd Ashrof purportedly linked to 1Malaysia Devel-
Adrin Kamarul informed the media upon opment Bhd (1MDB), the parent com- This is Najib’s final appeal (to the Fed-
receiving a reply from the Federal Court pany of SRC. eral Court). He has indicated that he plans
registrar’s office. to hire a Queen’s counsel to argue his case
Some US$15.4 million from Cutting in the apex court. Siti Hajar has fixed April
“An email from the court came in around Edge Industries Ltd, owned by Tawfik 8 to confirm the date of the application for
11am informing parties that [the] applica- and another person, was subsequently the ad hoc admission of the Queen’s counsel.
tion to vacate was rejected and the matter repatriated.
will proceed as scheduled on March 15 and Shafee is said to have left for the UK
16,” he said. On Dec 7, Najib tried to have the Court earlier this week to look into the possibility
of Appeal delay the handing down of its of hiring a Queen’s counsel.
On Monday, Najib through his lawyers verdict on his appeal against a conviction Read also: March 21 fixed for decision
Tan Sri Muhammad Shafee Abdullah and by the High Court in his SRC case, but on Rosmah’s second bid to recuse judge
Harvinderjit Singh had sought an adjourn- this was dismissed by the appellate court. Click here
ment of the appeal to facilitate their quest
to get more court documents. The next day (Dec 8), the appellate
court unanimously upheld the convic-

from Page 8 and that China would probably be a safe bet my happiness that he (Ng) had been released.
with WeChat”. Ng, however, was eventually arrested and
Using WeChat and code names
Fearing Ng’s mobile phone or Hwee Bin’s Hence, he added they stuck to WeChat charged in Malaysia in 2019 after Najib lost
phone have been tapped, Leissner said he as a mode of communication including with power in the 2018 elections.
had resorted to not communicating directly Jho Low who had switched from Blackberry
with Ng and instead used WeChat to com- messengers to WeChat at about the same He was then deported to the US and was
municate with Ng’s wife using code names. time. charged. In Malaysia, he and his wife are
also subject to forfeiture proceedings by the
“Hwee Bin was afraid, and I shared that Leissner said he would use the chat name Malaysian Anti-Corruption Commission.
concern too, that as Ng was being investi- of Forza and Hwee Bin’s was Morning Dew
gated in Singapore that his phone was no and they communicated frequently includ- Ng also faces charges under the Capital
longer secure in terms of communicating ing making phone and video calls using that Markets and Services Act 2007, in Kuala
on that phone, meaning that he would either application. Lumpur, and had claimed trial on Dec 19,
be listened to or any messages going to him 2018, of four counts of abetting Goldman
would be received by the authorities there. The witness said Ng was finally released Sachs over the sale of 1MDB bonds total-
by the Singapore authorities on Nov 17, ling US$6.5 billion (RM26.71 billion) by
“So it was my understanding from her, 2017 and allowed to return to Malaysia and leaving out material facts and making false
and I shared that the phone was no longer he had exchanges with Hwee Bin about the statements.
secure to communicate with Ng,” he added. release. Read also: Malaysian financier said he dis-
cussed 1MDB probe with Trump allies —
Leissner said they resorted to usingWe- Rolle: And you say, “Heard of the great testimony Click here
Chat, the Chinese version ofWhatsApp, and news”? to Hwee Bin
“we thought that was at least a step removed
from any other authorities around the world Leissner:Yes (on the release) and I said
“Sending my love to you both”. I expressed

t h u r s d a y m a r c h 3 , 2 0 2 2 10 T h e E d g e C E O m o r n i n g b r i e f

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MBSB Bank files lawsuit over RM106m
unpaid mortgage for KolejYayasan Saad

KUALA LUMPUR (March 2): MBSB by Shazni Ong The facility agreement provides inter
Bank Bhd has filed a lawsuit against busi- theedgemarkets.com alia that the total purchase price of the Bai
ness tycoon Tan Sri Halim Saad over un- ’Al-Inah facility is RM77 million, and the
paid mortgage of more than RM106.8 According to the statement of claim, total sale price of the assets to be paid un-
million for KolejYayasan Saad in Melaka. Halim is a guarantor for the financial facil- der the Bai ’Al-Inah facility to the plaintiff
ities provided by Malaysia Building Society is RM173.15 million.
MBSB, who is the plaintiff, filed both Bhd (now known as MBSB Bank Bhd) to
a writ and a statement of claim through KYS College Sdn Bhd. In addition,YKS covenants and under-
law firm Messrs Hisham, Sobri & Kadir takes to pay to the plaintiff the amount
in the High Court on Feb 9, which were KYS, which has a registered address in of the sale price payable under the Bai
sighted by theedgemarkets.com. Kuala Lumpur and a business address in ’Al-Inah facility in accordance with the
Melaka, conducts business related to the payment terms pursuant to clause 10 of
Under the writ, MBSB is seeking from operations of educational institutions, the the facility agreement, as well as to pay
Halim, who has been named the defend- management of educational programmes late payment compensation (Ta’widh) for
ant in the suit, six endorsements of claim. as well as the management of movable and the amount owed and payable pursuant
immovable property of the company. to Clause 21.30 of the facility agreement.
They are:
• The outstanding and payable total sale The college located on a 131-acre land “In the event of any breach of terms
in Ayer Keroh was officiated in January and conditions by KYS including and not
price under the Bai ’Al-Inah facility of 1995 by then deputy prime minister Da- limited to failure to pay the amount due
RM106.36 million as at Dec 31, 2021; tuk Seri Anwar Ibrahim, and was founded under the facility agreement, the plaintiff
• Outstanding Ta’widh under the Bai by Halim to pay tribute to his late father reserves the right to terminate the facility
’Al-Inah facility of RM437,147 as of and contribute back to society. agreement and claim all amounts due and
Dec 31, 2021; payable by KYS under the facility agree-
• Ta’widh under the Bai ’Al-Inah facil- Based on the original offer letter, the ment and security documents.
ity at the prevailing Islamic interbank plaintiff through an offer letter dated Feb
money market rate per annum on the 27, 2012 had agreed to provide to KYS “All terms and conditions in the facility
amount of RM106.36 million calculat- the Bai ‘Al-Inah financial facility of RM77 agreement have been agreed and signed
ed from Jan 1, 2022 until the date of full million following KYS’ request to obtain by KYS without any conditions,” it said.
and final settlement; financial facilities from the plaintiff.
• Late payment charge at the rate of 5% On June 22, 2015, the plaintiff issued an
per annum on the amount of RM106.36 The Bai ‘Al-Inah facility consists of Bai additional offer letter to amend the terms
million calculated from the date of judge- ’Al-Inah 1 (BIN 1) for financial facilities of the original offer letter at the request of
ment until the date of full settlement of amounting to RM54 million for the pur- KYS, with the contents of the supplemen-
the judgement debt pursuant to Order pose of redeeming property financing fi- tary offer letter having been agreed and
42, Rule 12A of the Rules of Court 2012; nancial facilities-i from Bank Rakyat, as signed by KYS without any conditions.
• Cost of this action on the basis of the well as Bai ’Al-Inah 2 (BIN 2) for finan-
solicitor and client; and other orders cial facilities amounting to RM23 million “The defendant is also aware of the sup-
and/or further relief deemed expedient for the purpose of development costs and plementary offer letter and has executed a
by the court. administrative costs of KolejYayasan Saad, memorandum of acknowledgement dated
In addition, theedgemarkets.com was made Ayer Keroh, Melaka. June 30, 2015 on the supplementary offer
to understand that there was a case man- letter,” it added.
agement on Monday (Feb 28), with the On May 15, 2012, the plaintiff and KYS
next case management entered into a financial facility agreement Following that, MBSB claimed that
scheduled for March following KYS’ acceptance and agreement KYS and the defendant had breached the
8 — both in front original offer letter, supplementary offer
of deputy High of the original letter of offer. letter, facility agreement and the securi-
Court registrar ties documents by refusing, neglecting, be-
Mohd Zamir Menara MBSB Bank in Petaling Jaya, ing negligent and/or failing to repay the
Suhaimee. Selangor. MBSB is seeking from Halim, amount due and payable to the plaintiff.
who has been named the defendant in the
“Through a letter dated July 19, 2017,
suit, six endorsements of claim. KYS has made an acknowledgement of
KYS’ failure to make monthly payments
for the Bai ‘Al-Inah facility,” it said.

Subsequently, the plaintiff filed four
notices of claim dated Oct 17, 2017, Feb
23, 2018, July 21, 2020 and Oct 27, 2021
to KYS and the defendant to settle the
monthly amount outstanding under the
facility agreement and security documents.

However, MBSB said KYS and the de-
fendant had repeatedly refused, neglected
and/or failed to make any payment for the
outstanding monthly amount within the
allotted period.

t h u r s d a y m a r c h 3 , 2 0 2 2 11 T h e E d g e C E O m o r n i n g b r i e f

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Six largest Malaysian banks’ collective
market cap surges over RM118b in two years

KUALA LUMPUR (March 2): Banking by Justin Lim He also said current account-savings ac-
stocks, being the proxy for an economic re- theedgemarkets.com count (CASA) ratio are once again peakish,
covery, are having a good run, bolstered by with totap deposits remaining high in January,
mass vaccination. In a note on Wednesday, Kenanga Re- up 6.5% y-o-y, with CASA-to-deposit mix
search upgraded the banking sector to “over- trailing close to the industry high of 30.5%.
Malaysia’s top six banking groups in terms weight” from “neutral” on the back of clear There was a slight 0.6% month-on-month
of market capitalisation saw their market value tailwinds — economy-fuelled growth, lower decline, which Chua speculated could be the
jump a collective RM118.21 billion since the asset quality risks, recovering trading activ- result of withdrawals ahead of Chinese New
pandemic struck in March 2020. ities, larger fee-based income — towards Year festivities and he anticipated customers
wider earnings expansion, after noting that would replenish their accounts subsequently.
The market cap expansion is almost four the recent fourth quarter earnings season “For the moment, we keep our CY22 deposits
times the combined market value of the rub- had mostly demonstrated positive tidings growth target in line with our loan predictions,
ber glove makers Top Glove Corp Bhd — ahead for banks. at 5% to 5.5%,” he added.
the world’s largest glove maker — and Har-
talega Holdings Bhd — the world’s largest And the year 2022 had gone off on a The sector’s developments in January
producer of nitrile gloves — which stood good start for the sector, its analyst Clement prompted the research house to relook at the
at RM32.85 billion based on Wednesday’s Chua noted, with system loans in January sector towards its prospect in 2023, Chua said,
(March 2) closing price. reflecting a 4.7% year-on-year increase, with adding that “...if the economy continues to
better numbers in both the household (an recover without disruption, demand for loans
The six entities, namely Malayan Bank- increase of 4.7%) and business (up 4.6%) could be exponential and its growth may mit-
ing Bhd, Public Bank Bhd, CIMB Group fronts. Compared to December 2021, there igate any net interest margin (NIM) erosion
Holdings Bhd, Hong Leong Bank Bhd was a 0.6% and 0.5% growth, respectively, from the ongoing competition of deposit”.
(HLB), Hong Leong Financial Group Bhd he added, with the main drivers of house-
and RHB Bank Bhd, are Bursa Malaysia’s hold loans coming from housing loans and Another catalyst for the banking sector
heavyweight banking stocks and constitu- hire purchases. is higher interest rates, said Chua.
ents of the benchmark FBM KLCI.
“Meanwhile, business loans were fun- “Most banks anticipate at least one over-
Public Bank saw the biggest market cap nelled towards more working capital needs, night policy rate hike in 2HCY22 and this
jump, an addition of a whopping RM36.45 likely to cope with the reinvigorating eco- should translate to slight bump to annual-
billion or 74.1% to RM85.6 billion, com- nomic landscape... for CY22 (calendar year ised NIMs thereafter.We anticipate non-in-
pared with RM49.15 billion on March 19, 2022), we believe an annual growth of 5% terest income to stabilise from the indus-
2020 — a day after the country imposed its to 5.5% is plausible, given the current mo- try-wide decline in 2021 as we operate in a
first movement control order. mentum demosntrated by ongoing econom- more normalised trading and investing land-
ic activity. This is also closely in line with scape. Meanwhile, the growth in fee-based
Malayan Banking, the country’s largest our in-house 2022 GDP forecast of 5.5% income will help to build a more sustainable
lender, came in second with a market cap top 6%,” Chua said. base for the banks,” he added.
expansion of RM26.6 billion or 33.42% in
the same period to RM106.19 billion from Chua also thinks earnings surprises may
RM79.59 billion. be seen when the banks eventually write
back their provisions and overlays.
Next was CIMB, whose market value
swelled to RM51.41 billion from RM31.16 “Dividend payments are also mostly back to
billion, after adding RM20.25 billion or pre-Covid levels, indicating that soundness in
64.99%, followed by HLB, whose mar- capital management has recovered,” he added.
ket cap rose RM18.47 billion or 71.12%
to RM44.44 billion from RM25.97 billion. Kenanga Research now has “outperform”
calls in the sector, with its top picks being Al-
HLB’s parent, Hong Leong Financial liance Bank Malaysia Bhd (target price [TP]:
Group Bhd, also saw its market value jump RM3.85) — which it said has fundamentals
RM9.53 billion or 73.13% to RM22.56 bil- comparable to its larger-cap peers — and RHB
lion from RM13.03 billion, while RHB Bank’s Bank (TP: RM6.70). For the latter, it sees a
market cap rose RM6.91 billion or 40% to potential boost in sentiment from the bank’s
RM24.07 billion from RM17.16 billion. participation in the digital banking bid.

Market cap of Malaysia’s 6 largest banks swell to almost RM120bil in two years Its other “outperform” calls are for Affin
Bank Bhd (TP: RM2.10), AMMB Hold-
Name Market cap on Market cap on Market cap Market cap ings Bhd (AmBank) (TP: RM3.75), and
March 2, 2022 March 19, 2020 change change Maybank (TP: RM10.85).
(RM billion) (%)
Chua said Affin is now at the forefront as
Public Bank Bhd 85.60 49.15 36.45 74 a strong dividend contender, while AmBank
could return to pre-global settlement levels.
Malayan Banking Bhd 106.19 79.59 26.60 33 Read also: Kenanga upgrades banking sector
to ‘overweight’, sees clear tailwinds towards
CIMB Group Holdings Bhd 51.41 31.16 20.25 65 wider earnings expansion Click here

Hong Leong Bank Bhd 44.44 25.97 18.47 71

Hong Leong Financial Group 22.56 13.03 9.53 73

RHB Bank Bhd 24.07 17.16 6.91 40

Source: Bloomberg

t h u r s d a y m a r c h 3 , 2 0 2 2 12 T h e E d g e C E O m o r n i n g b r i e f

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KUALA LUMPUR (March 2): Corporate Corp results ings beat on the back of higher CPO prices
results are headed in the right direction ‘headed in right realised,” it said.
as the recent December quarter earnings
(4Q21) show a slight positive trend, ob- direction’ as The misses-to-beats ratio improved to
serve analysts. 4Q21 earnings 0.6 from 1.1 in the preceding September
improve slightly, quarter, it added, noting that 35.6% of
RHB Retail Research in a Wednes- earnings beat expectations compared to
day (March 1) strategy report said the say analysts just 22% that disappointed.
December quarter results were “rel-
atively encouraging”, building on the theedgemarkets.com UOB KayHian Research turning
green shoots of recovery seen during the defensive
preceding September quarter on the back to conduct its monetary tightening pro- UOB KayHian Research noted that stocks
of the normalisation of economic activi- gramme. A prolonged crisis will threaten under its coverage posted a “slightly posi-
ty that will continue to gain momentum the global economic recovery. Fiscal and tive earnings trend” in 4Q21, with strong
through 2022. regulatory risks remain as higher oil prices upgrades for plantation stocks prompting
continue to add to a rising fuel subsidy a modest uplift in the FTSE Bursa Malay-
“The market’s defensive attributes are bill that already exceeds incremental fiscal sia KLCI’s 2022 earnings growth outlook.
attracting new foreign portfolio flows revenues,” RHB said.
while the anticipated relaxation of bor- The foreign research house, however, is
der restrictions will lift trading senti- “The heightened market volatility sup- turning “generally defensive” as the global
ment,” it noted, adding that the Decem- ports a trading strategy centred around economy enters a period of high inflation
ber quarter results are “headed in the core defensive exposure.The recent out- and US rate hike cycle.
right direction”. performance of large caps has already lift-
ed the KLCI’s FY22F P/E to 16.5x on “Nevertheless, we do not embrace a
Nonetheless, it added that regulatory the back of nominal EPS contraction of scenario of a prolonged global stagflation
and political risks, a protracted crisis in 2.2% that suggests profit taking on the and retain some growth- and event-driven
Ukraine as well as uncompelling valua- large caps and investor patience to accu- companies among our top picks,” UOB
tions could limit the market’s fundamen- mulate at lower levels,” it added. KayHian said in a Wednesday report.
tal upside.
RHB pointed out that five sectors beat It is maintaining the end-22 FBM
RHB pointed out that Malaysia’s lim- expectations in the recent corporate re- KLCI target at 1,635, valuing the index at
ited trade and business ties with Russia sults — including the bellwether banking around 16.2x 2022F PE (historical mean).
and Ukraine, coupled with the old econ- sector, plantation, auto, NBFI (non bank
omy, commodity-centric industries, offer lenders) and property — which trumped UOB KayHian’s top picks are As-
Bursa Malaysia some defensive attributes. the two sectors that disappointed (gloves tro Malaysia, Genting Malaysia, IHH
and consumer). Healthcare, MyEG Services, Press Metal
In the near term, it expects foreign Aluminium Holdings, RHB Bank (which
portfolio interest to remain elevated with “The banking sector reported robust replaces CIMB),TIME dotCom and VS
a focus on defensive sectors — consum- operating metrics, coupled with well con- Industry.
er, healthcare, utilities, basic materials, tained credit costs, while plantation earn-
REITs and resilient high dividend-yield- “We are not overly bearish at this point,
ing stocks. and while we favour high yielders and low
beta stocks, we still retain some growth-
It added that a worsening of the crisis and event-driven companies among our
could drive commodity prices even higher. top picks. Commodity stocks will generally
continue to extend their outperformances
“The Ukraine crisis is a significant in- so long as the Russia-Ukraine war does
flationary event that will present the US not abate,” it noted.
Federal Reserve with a dilemma on how

KUALA LUMPUR (March 2):The Ma- MARGMA: (March 1) revealing that Top Glove had
laysian Rubber Glove Manufacturers Asso- Estimated incurred an estimated loss of RM3.6 bil-
ciation (MARGMA) has clarified that the RM3.6bTop lion because of the WRO.
RM3.6 billion loss estimated to have been Glove loss from
incurred by Top Glove Corp Bhd due to US ban actually MITI had said that the figure was ob-
the import ban under the US Customs and potential revenue tained from MARGMA.
Border Protection’s (US CBP) Withhold loss from a few
Release Order (WRO), is actually a cumu- glove makers According to previous news reports,
lative sum from a few affected companies. the US CBP banned the import of gloves
Tan Siew Mung from several Malaysian-based companies
And it is an estimated loss in potential theedgemarkets.com over allegations of forced labour since
glove export revenue due to the WRO is- the end of 2019, including, among oth-
sue, and not an actual financial loss of any ers,WRP Asia Pacific Sdn Bhd (from Oct
single company, the association said in a 1, 2019 till March 23, 2020), Top Glove
statement Wednesday (March 2). (from July 2020 till September 2021), Su-
permax Glove Manufacturing and Max-
The figure was arrived at based on various ter Glove Manufacturing Sdn Bhd (from
assumptions, it said, but did not elaborate. Oct 21, 2021).

MARGMA says it stands corrected on It also banned imports from Brightway
the issue. Group (from Dec 20, 2021), as well as
Smart Group Bhd (from Nov 4, 2021) and
MARGMA was referring to news re- YTY Industry Holdings Sdn Bhd (from
ports citing the Ministry of International Jan 29, 2022) over similar allegations.
Trade and Industry (MITI) on Tuesday

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KUALA LUMPUR (March 2): The HLIB maintains Dialog Group Bhd.
oil and gas (O&G) sector is expected ‘overweight’ on “Our top picks for the sector are
to enjoy a better financial year in 2022 O&G, sees better
(FY22) amid a surge in Brent crude oil year ahead for DNeX (“buy”; target price [TP]:
prices boosted by the Russia-Ukraine sector amid oil RM1.64) as it stands to be a direct bene-
conflict. ficiary of soaring oil prices from its Anas-
price surge uria oil-producing assets and strong av-
In a note on Wednesday (March 2), erage selling price growth from Silterra.
Hong Leong Investment Bank (HLIB) by Izzul Ikram
Research analyst JeremieYap said the re- theedgemarkets.com “Bumi Armada (“buy”; TP: 84 sen)
search house raised its 2022 Brent crude given its foothold in the floating pro-
oil price forecast to US$80-US$90 — duction storage and offloading business,
from US$70-US$75 previously — as which provides steady recurring income,
sanctions against Russia may drive pric- coupled with speedy enhancement of its
es further. debt profile.

“The Brent crude oil price has surged “Dialog (“buy”; TP: RM3.32) for its
past US$100 (about RM419.25) per bar- recurring income type of business model,
rel, an increase of about 50% since De- and we deem it as one of the only listed
cember 2021, when the Russia-Ukraine secular growth stocks in the local oil and
conflict started to build up. gas space,” he said.

“According to the US Energy Infor- The HLIB Research analyst also said
mation Administration, Russia is the that the research house expects Petroliam
third-largest oil producer in the world Nasional Bhd (Petronas) to increase its
at 10.5 million barrels per day or 11.2% capital expenditure (capex) to capitalise
of global output in 2020. on current soaring oil prices, noting that
this would be a boon to the entire O&G
“As such, if sanctions were to even- value chain in Malaysia.
tually encompass Russian oil, this could
send prices ascending further due to the “This would in turn benefit the en-
anticipated supply crunch in global oil tire O&G value chain in Malaysia. We
markets,” he added. should see capex spending in 2022 that
is better than in 2021, albeit still lower
In line with this,Yap said the research than the pre-Covid-19 pandemic levels
house maintained its “overweight” call on of 2018-2019.
the O&G sector, and that his top picks
for the sector are Dagang NeXchange “We forecast a capex spending of
Bhd (DNeX), Bumi Armada Bhd and RM40 billion to RM45 billion in FY22
(FY21: RM30.5 billion),”Yap said.

KUALA LUMPUR (March 2): Kenanga Petronas capex reuters
Investment Bank Bhd expects Petroliam to normalise
Nasional Bhd’s (Petronas) 2022 capital to RM40 “We believe the domestic upstream
expenditure (capex) to normalise to the billion-RM50 space will be the beneficiary if 60% of it is
RM40 billion-RM50 billion range, with a billion in 2022 allocated to the domestic arm,” it said in
rebound to be seen in as early as the first — Kenanga a note on Wednesday.
half of 2022. Investment
Bank The investment bank added that the na-
In light of its energy transition agenda, tional oil company aims to launch a new
Petronas also gave guidance that around Bernama independent entity by mid-2022 that will
20% of its capex for the next five years will focus on clean energy solutions, noting that
be allocated for new energy and zero-car- Ukraine,” it said. 20% of the total capex has been allocated for
bon emission initiatives. Meanwhile, RHB Investment Bank said “Step Out” projects that include specialty
chemicals, renewable energy, and hydrogen.
“Nonetheless, we still expect upstream service providers should gradually benefit
spending to remain its largest area of in- from a ramp-up in Petronas’ activities and
vestment,” the research house said in a note increased domestic capex allocations.
on Wednesday.
“If Petronas is spending RM20 billion
The national oil company returned to capex annually for upstream activities in
the black with a net profit of RM48.6 bil- 2022, this would point to a strong increase
lion for the financial year ended Dec 31, of 37% from FY20’s RM14.6 billion.
2021 (FY21) compared with a net loss of
RM21 billion a year earlier, while revenue
was at RM248 billion against RM178.74
billion previously.

“Overall, we maintain our ‘overweight’
stance on the oil and gas sector, with a
higher 2022 average Brent crude oil price
assumption of US$90 per barrel on the
back of supply disruption fears follow-
ing the unfolding of Russia’s invasion of

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Rehda: ResidentialTenancy Act should
be reviewed and reconsidered carefully

PETALING JAYA (March 2): The Real by Chung Ying Yi Rehda explained that in some cases,
Estate and Housing Developers’ Associ- theedgemarkets.com collecting only two months’ deposit will
ation Malaysia (Rehda) is cognisant of leave the landlord exposed to losses due
the Residential Tenancy Act (RTA) pro- As such, Rehda proposed that the RTA to the lengthy process of collecting rental,
posed by the Ministry of Housing and Lo- should only apply to residential tenancies calling a breach and the legal work involved
cal Government (KPKT), which recently where the monthly rent is below RM750. in evicting a defaulting tenant, all of which
went through a month-long consultancy This is based on the data provided in the can take up to at least three months.
period with affected stakeholders. regulatory impact statement and is con-
sidered the cut off point for the low and Rehda also strongly disagrees with any
In a statement, Rehda acting president low-middle monthly rent range. form of rent control, including the proposed
Datuk N KTong (pictured) recognised the restriction to limit the number and quantum
intention behind the proposed RTA that In terms of the security deposit place- of rent increases.The association said that
aims to facilitate some issues arising in the ment that is being handed to a govern- all rental levels and renewals should only be
market. However, such an act should take ment agency, Rehda noted that such driven by market forces. As there may be
into account the fact that not all tenants placements will open up the possibility different requirements and demands on the
and landlords have the same needs and of delays, such as for refunds and claims property from tenants, it is only fair to leave
capabilities, and require different levels of for damages due to the additional layers the rental rate to be determined between the
protection, particularly tenants from the of bureaucracy. landlord and tenant, it added.Also, capping
B40 group. rent control will only retard investment in
Additionally, Rehda is of the view that property and ultimately negatively impact
“While there are several points in the KPKT’s plan to utilise the interest earned economic growth.
proposed act’s regulatory impact statement from the deposits to fund the adminis-
which may be helpful to resolve disputes tration of the RTA to defray the costs of In addition, the proposal to disallow
that may arise between the parties involved managing the proposed tenant landlord a landlord to claim the rent of unexpired
in residential tenancy matters, we are also database is misguided.This is because the term in the event of breach by the tenant
concerned on some proposals in the act, cost should only be defrayed from taxes is unjust — a defaulting tenant should not
which should be relooked and reconsid- collected through the nation’s taxation sys- be given protection since the landlord is
ered carefully otherwise, the impact could tem, and interest earned on the deposits the one who will suffer when a tenant is
be detrimental to the industry,” saidTong. should rightly remain the property of the in breach, said Rehda.
depositor.
Some of the main concerns highlighted “The proposal for the establishment of
is that the RTA should only be applica- The association added that the amount an RTA tribunal may provide a much more
ble in specific circumstances. In principle, of security and utility deposits should be affordable and quicker access to justice
Rehda strongly opposes the government’s payable by the tenant.The draft RTA pro- for all involved parties, although laudable,
intervention in what should be a private poses to set the amount of security deposit the process of handing down judgements
agreement between two parties.There may to two months’ rent and one month’s rent should be shortened to seven days instead
be situations, however, where the tenant for utility deposit.This is where the amount of the proposed 60 days.
is at a disadvantage compared with the of deposits to be collected should be left to
landlord, thus requiring a higher level of market forces, and between the landlord “We also support the creation of a res-
protection. For instance, if the tenant is and tenant — there is no one-size-fits-all idential tenancy agreement template, but
from the B40 group, the landlord and ten- scenario for tenancy arrangements, said hope that the template will still allow room
ant are not on equal footing. Rehda. for amendments should both landlord and
tenant be agreeable,”Tong concluded.

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KUALA LUMPUR (March 2): Kuala Lumpur KLK shares KLK’s one year shares price
Kepong Bhd’s (KLK) share price rose to its all- hit all-time high
time high onWednesday (March 2) as investors RM
expect the company to deliver a strong set of amid surging 30
earnings on the back of soaring crude palm oil CPO prices
(CPO) prices. RM27.40
by Justin Lim 25
KLK was the day’s top gainer on Bursa Malay- theedgemarkets.com
sia,closing RM1.36 or 5.22% firmer at RM27.40 RM21.84
after hitting an intraday high of RM28.70. to RM4,063 per tonne from RM2,703, while
the PK price jumped 66.9% to RM2,864 per 20
The counter has gained RM5.62 or 25.8% tonne from RM1,716,” it reported.
over the last two months, from RM21.78 at the 15 March 2, 2022
end of December. In a note dated Feb 17, Kenanga Research Feb 8, 2021
said KLK’s 1QFY22 core net profit was within
Trading volume also swelled to 10.5 mil- expectations, at 25% of the research house’s full- Source: Bloomberg
lion shares onWednesday compared with 2.53 year estimate, and 23% of consensus estimate.
million on Tuesday. cently upgraded CPO price assumptions of
Kenanga Research said although palm oil RM3,800 for FY22 to RM4,000 per tonne and
KLK saw its net profit surge 67.69% to prices should ease over the next two to three from RM3,100 to RM3,500 for FY23. How-
RM599.32 million for the first quarter ended months, edible oils and fats supply for 2022 ever, the stronger CPO price assumptions are
Dec 31,2021 (1QFY22),from RM357.41 million would probably stay tighter than projected on offset by higher-than-expected fertiliser costs,
a year earlier, boosted by the strong CPO prices. poorer South American soyabean harvest. notably potash and nitrogen,” it added.

Quarterly revenue surged 58.82% to Hence, it said elevated CPO prices were ex- Kenanga Research maintained its “out-
RM6.83 billion from RM4.3 billion. pected to stay longer than earlier anticipated. perform” recommendation and target price
of RM30 for KLK.
The group said its plantation division’s profit “Consequently, we are nudging up our re-
more than doubled to RM607.9 million from
RM239 million in 1QFY21, on the back of sig-
nificantly higher CPO and palm kernel (PK)
prices as well as recognised profit from newly
acquired subsidiaries.

“The CPO price surged 50.3% year-on-year

Zuraida: Malaysia poorest 40% of the population. Still, the Sime Darby
has enough supply of subsidised cooking oil is suffi- Plantation’s foreign
cient to meet the needs of the low-income shareholding reverts
cooking oil supplies and 75% of the middle-income groups,
to blunt record Zuraida said. to record low
prices
Palm oil, used in a plethora of con- by Tan Siew Mung
by Anuradha Raghu sumer goods from cooking oil to instant theedgemarkets.com
Bloomberg noodles, has smashed through records.
Benchmark futures in Kuala Lumpur hit KUALA LUMPUR (March 2): Sime Dar-
(March 2): Malaysia has adequate supplies of RM6,794 a ton on Tuesday (March 1), by Plantation Bhd’s foreign shareholding had
government-subsidised cooking oil to meet lo- extending a rally that’s seen prices double slipped further as of January, reverting to a pre-
cal demand and help blunt the impact of food since mid-June. vious record low, according to the latest updates
inflation on lower income groups, according on the oil palm plantation company’s website.
to Plantation Industries and Commodities Palm oil’s supply woes began in early
Minister Datuk Zuraida Kamaruddin. 2020 after Malaysia shut its borders and The plantation firm’s foreign shareholding
froze hiring of migrant workers to stem dipped to 8.94% in January, from 8.99% in De-
“The rising cost in Malaysia and elsewhere a surge in Covid-19 cases, resulting in a cember 2021, according to its foreign sharehold-
is something we have expected, given the ef- historic labour shortage across plantations ing chart, which dates back to December 2017.
fect of the [Covid-19] pandemic where price in the world’s second-biggest grower.The
rises ripple through economies worldwide,” decision in January by top grower Indo- The chart showed 8.94% to be the lowest on
Zuraida said in reply to emailed questions. nesia to curb shipments to expand local record,which was hit in July 2021 when the com-
supply tightened the market further. pany’s foreign shareholding dropped to that level.
The war in Ukraine and sweeping sanc-
tions on Russia have bolstered edible oil pric- Zuraida said that the ministry is plan- The highest foreign shareholding on record
es, which were already climbing after drought ning a “comprehensive review” of federal, was 13.92%, reached in December 2017.
and labour shortages squeezed supplies.The states and local taxes that increase plant-
rally is putting strain on Malaysia, where food ers’ operating cost and affect Malaysia’s Sime Darby Plantation’s major shareholders
inflation in January accelerated at the fastest competitiveness versus Indonesia. include Permodalan Nasional Bhd (PNB) and
pace in four years. the Employees Provident Fund (EPF), which
The study, planned to begin in mid- own a 56.44% stake and 16.05% respectively.
“There is a concern about the inflation 2022, “will result in a more efficient tax-
and its impact on consumers, especially for ation scheme that not only contributes to At 11.05am onWednesday (March 2), Sime
those under B40,” she said, referring to the economic development but enhances the Darby Plantation’s share price had gained nine
competitiveness” of the Malaysian palm sen or 1.83% to RM5, valuing the company at
oil industry, she said. RM33.96 billion.

The review does not include the coun- Year to date, the counter has risen 30.21%.
try’s export duty structure, which will be
maintained between 3% and 8% based on
the level of crude palm oil prices.

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KUALA LUMPUR (March 2): The de- Decline in are focused on growth, we strongly believe
cline in profitability of Malaysian public Malaysian PLC that the PLCT Programme will help ele-
listed companies (PLCs) in recent years vate the stature of our PLCs,” Muhammad
indicates a clear need for these companies profitability Umar shared.
to undergo a transformation, according indicates need for
to Bursa Malaysia Bhd chairman Tan Sri transformation, The PLCT Programme is a programme
Abdul Wahid Omar. aimed at steering Corporate Malaysia to
says Bursa higher performance levels.
In the launching event on Wednesday chairman
(March 2), Abdul Wahid said the newly Spearheaded by Bursa, the programme
launched Public Listed CompaniesTrans- by Sulhi Khalid is expected to increase the attractiveness
formation (PLCT) Programme will benefit theedgemarkets.com (“investability”) of listed companies in Ma-
not only Corporate Malaysia, but also pro- laysia by strengthening the growth narra-
duce several positive outcomes that among tives of PLCs across all sizes.
others will boost market confidence and
aid Malaysia’s overall economic recovery. The launch of the PLCT Programme
on Wednesday also saw the unveiling
“The support of industry champions of the programme’s first digital guide-
and corporate leaders is critical through- book titled “Creating Purpose & Perfor-
out the PLCT Programme. mance Driven Public Listed Companies
(PLCs)”.
“The programme’s success is dependent
on a whole-of-industry approach where Finance Minister Tengku Datuk Seri
key industry stakeholders collectively and Zafrul Tengku Abdul Aziz announced the
continuously encourage and guide PLCs PLCT Programme in November last year,
in their journey of growth. aimed at delivering a high-performance
Corporate Malaysia.
“I encourage PLCs to have a positive
mindset and take advantage of this oppor- He said the PLCT Programme will be
tunity and rise to the challenge of commit- focusing on enhancing five pillars of the
ting to performance,” he said. nation’s PLCs, being:
• for PLCs to be performance-driven;
Meanwhile, Bursa chief executive of- • grow as sustainable, socially responsible
ficer Datuk Muhammad Umar Swift said
PLCs must remain agile in today’s high- and ethical organisations;
ly challenging economic landscape while • to feature strengthened corporate gov-
maintaining a relentless focus on sustain-
able outcomes. ernance;
• to be digitally enabled; and
“If participating PLCs remain commit- • to support the nation-building drive to
ted to adopting leading best practices and
advance the Malaysian economy and
community.

KUALA LUMPUR (March 2):The Amer- AMCHAM calls It was reported on Feb 18 this year that
ican Malaysian Chamber of Commerce for transparent, four mobile network operators (MNOs)
(AMCHAM) said it calls for a 5G roll- — Celcom Axiata Bhd, Digi Telecom-
out plan that is transparent, competitive competitive, munications Sdn Bhd, Maxis Bhd and
and addresses information security needs. secure 5G rollout U Mobile Sdn Bhd — had forwarded a
proposal to the government, calling for
In a statement on Wednesday (March plan a shift from the current single wholesale
2), the chamber said the government’s plan network (SWN) model to a dual wholesale
of action must include these elements to by Izzul Ikram network (DWN).
derive an outcome that benefits businesses theedgemarkets.com
as well as the rakyat. While details of the proposal were not
“Lastly, to ensure an effective model disclosed, the MNOs said the proposed
“5G will be with us for many years to with extensive coverage to all citizens that DWN model will be developed and op-
come. As a foundational technology, it will encourage greater foreign and domes- erated by two consortiums involving
needs to be reliable, robust and secure,” tic investment and unlock the full poten- the government’s Digital Nasional Bhd
it added. tial of Malaysia for future success,” it said. (DNB), and MNOs which are ready to
invest.
In line with this, AMCHAM said that The chamber noted that investors, in-
any decision made by policymakers — such cluding its members, are keenly aware that According to Communications and
as a potential 5G wholesale model change any delay in the implementation of 5G in Multimedia Minister Tan Sri Annuar
— has to take into account various factors Malaysia will not only impact its Nation- Musa, his Ministry will table a Cabinet
to ensure the best outcome for the nation. al Investment Aspirations (NIA) but may Ministers’ memorandum this month to
also negatively implicate the nation’s com- resolve the issues relating to DNB’s po-
“Firstly [it has to take into account], the petitive standing, especially among neigh- sition and the SWN and DWN network
progress and investments that have already bouring countries. system “once and for all”.
been made in the implementation of the Read also: DNB’s 5G network to use
rollout plan. Ericsson dynamic radio resource parti-
tioning Click here
“Secondly, the need to ensure that there
is effective communication to the public
and other stakeholders along with extensive
consultation, transparency, and delibera-
tion of issues of the rollout.

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news In brief

Wegmans proposes one-for-four bonus issue of warrants Aneka Jaringan bags RM20m piling
works contract for condo project
KUALA LUMPUR (March 2): Wegmans Holdings Bhd on Wednesday (March 2)
proposed to undertake a bonus issue of up to 168.76 million free warrants on the basis KUALA LUMPUR (March 2): Aneka Jaringan
of one warrant C for every four existing ordinary shares. The group said in a bourse filing Holdings Bhd has secured a RM20.18 million
that the move is to reward the company’s shareholders for their continuous support contract to undertake piling and substructure
by enabling them to participate in a derivative of the company without incurring any works for a 45-storey condominium project
costs, and provide them an opportunity to further increase their equity participation in Setapak. The contract was awarded
in the company by exercising the warrants at a pre-determined price over the tenure by A&A Architects Sdn Bhd on behalf of
of the warrants. It also said the move will strengthen the company’s capital base and Curvo Development Sdn Bhd, said Aneka
shareholders’ funds; and provide the company with additional working capital without Jaringan in a stock exchange filing. The
incurring interest costs, as compared to conventional bank borrowings. Based on the project’s commencement date is March 1,
warrant C exercise price of 21 sen, the exercise is expected to raise gross proceeds of and it is expected to be completed by Dec
between RM28.88 million to RM35.44 million. — by Tan Siew Mung 31, the group said. The project is expected
to contribute positively to the group’s
BLand withdraws from RM3.05b TCS awarded RM255m mixed-use consolidated earnings and net assets for the
mixed-development project in development construction job financial year ending Aug 31, 2022 (FY22)
Myanmar and FY23, it added. — by Syafiqah Salim
KUALA LUMPUR (March 2): Construction
KUALA LUMPUR (March 2): Berjaya firm TCS Group Holdings Bhd has bagged Willowglen bags RM14m contract for
Land Bhd (BLand) has pulled out from the a RM255 million contract from Remedy provision of RTS supervisory control
deal to undertake a housing and mixed Power Sdn Bhd to construct the foundation system
development project with an estimated and main building works of a mixed-use
gross development value of US$746.08 development project in Taman Desa, Kuala KUALA LUMPUR (March 2): Integrated
million (RM3.05 billion) in Yangon, Lumpur. In a bourse filing on Wednesday computer systems design company
Myanmar. In a bourse filing, BLand said (March 2), TCS said its wholly-owned Willowglen MSC Bhd has been awarded a
its 80%-owned subsidiary, BDS Smart subsidiary TCS Construction Sdn Bhd contract worth RM14.4 million from Sapura
City Co Ltd, has served a written notice accepted the letter of award from Remedy Rail Systems Sdn Bhd. The contract is for the
on the Yangon Region Government (YRG) on Tuesday. The foundation and main provision of a systems package-integrated
to terminate the concession agreement building works of the development pertain supervisory control system in respect of a
due to non-fulfilment of conditions. The to Phase 1 of the project — 25-storeys of rapid transit system (RTS), according to the
agreement was signed on Feb 7, 2020. “The office space, podium parking and facilities group’s bourse filing on Wednesday (March
termination has no effect on the issued — as well as a ground floor lobby and 2). Willowglen said the contract was awarded
share capital and substantial shareholders’ nine-storey underground parking. “The to its wholly-owned subsidiary Willowglen
shareholdings of BLand,” said the group, completion time for the contract shall be (Malaysia) Sdn Bhd. “The commencement
adding that it is not expected to have any 30 months commencing in April 2022 and date of the contract is March 2, 2022, and it
material effect on its net assets, earnings [is] expected to be complete in September will be completed by September 30, 2026,”
and gearing for the current financial year 2024. “TCS intends to fund the contract it said, adding it should contribute to its
ending June 30, 2022. At the time of via internally generated funds and/or earnings and net assets per share during the
signing the agreement, BLand said the borrowings,” it added. TCS noted that period. — by Izzul Ikram
project was expected to be developed the contract is expected to contribute
over a period of nine years and then positively to its future earnings and net G Capital wins contract to build solar
automatically extended for additional one assets for the duration of the contract. PV system
year. — by Syafiqah Salim — by Izzul Ikram
KUALA LUMPUR (March 2): G Capital Bhd
Alam Maritim Resources secures (formerly known as Gunung Capital Bhd) said
RM52m contract for Cendor Pipeline its 70%-owned unit Solarcity Malaysia Sdn
Project Bhd has been awarded a solar photovoltaic
energy generating system contract by two
KUALA LUMPUR (March 2): Alam Maritim subsidiaries of KSK Group Bhd. The contract
Resources Berhad announced on Wednesday involves the construction of two plants in
(March 2) that it has received a Letter of Award Kota Damansara, Petaling Jaya and Jalan
for a RM52 million contract in respect to the Yap Ah Shak, Kuala Lumpur, with a total
Cendor Pipeline Project by Petrofac Malaysia. capacity of 271 KWp, said G Capital in a
The company said in a statement that the letter bourse filing. The group said the two parties
of award, which is secured by its wholly-owned subsidiary Alam Maritim (M) Sdn Bhd, will also execute power purchase agreements
is for the provision of transportation, installation and pre-commissioning of flexible for a period of 25 years. G Capital said the
risers and other appurtenances for Cendor Pipeline project. The contract is expected plants are expected to achieve commercial
to complete on July 21, 2022. The contract is expected to contribute positively to the operation by the third quarter of 2022,
earnings and net tangible assets of Alam Maritim Resources and its group of companies and thereafter contribute positively to the
for the financial year ending June 30, 2022 and 2023. — by Tan Siew Mung group’s future earnings. The contract is not
expected to have any material impact on the
earnings and net assets of the group for the
financial year ending Dec 31, 2022, it added.
— by Syafiqah Salim

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MX Global secures capital injections from
Binance and Cuscapi to fund growth plans

KUALA LUMPUR (March 2): Homegrown fin- by Seah Eu Hen The SC has also gone a step further by order-
tech group MX Global Sdn Bhd has secured capital theedgemarkets.com ing Binance’s CEO Zhao to ensure the regulator’s
injections from cryptocurrency exchange Binance directives were carried out.
and digital business solutions provider Cuscapi Bhd. We believe that
partnering with MX Asked whether MX Global has obtained the
In a statement, MX Global said Binance has necessary clearance from the SC for the Binance
made an equity investment in the group, while Global will be a investment, CEO Fadzli said in a statement to
Cuscapi has subscribed for redeemable converti- springboard to new The Edge onWednesday (March 2) that the group
ble preference shares (RCPS) issued by the group. opportunities, both “has received confirmation that the structure of
in Malaysia and the the investment does not require approval by the
It said the capital injections will allow MX region as a whole, SC at this point”.
Global to build brand awareness, hire more as well as across the
high-quality talent and develop new features entire crypto and “We will submit the necessary [documents]
within Malaysia’s regulatory framework. blockchain ecosystem.” and take the necessary actions to ensure that the
partnerships always remain compliant with the
MX Global is one of the four recognised market — Binance founder and regulator,” he added.
operator-digital asset exchanges (RMO-DAX) in CEO Changpeng Zhao
Malaysia, after obtaining full approval from the Se- Fadzli declined to give details on the amount
curities Commission Malaysia (SC) in July last year. invested by Binance in MX Global.

MX Global chief executive officer (CEO) Datuk Near term focus to introduce more digital
Fadzli Shah said in the statement that the fintech assets product offerings
group aspires to be the preferred liquidity platform Fadzli said MX Global plans to introduce more
for digital asset or cryptocurrency investors and digital assets as part of its product offerings in
token issuers locally and internationally. the near future.

Binance’s founder and CEO, Changpeng He cited a survey by personal finance compar-
Zhao, said the group sees the potential in Ma- ison website Finder.com which showed Malay-
laysia, given its respected and innovative crypto sians not only own the five SC-authorised cryp-
and blockchain community. to tokens — Bitcoin (BTC), Ethereum (ETH),
Ripple (XRP), Litecoin (LTC) and Bitcoin Cash
“We believe that partnering with MX Global (BCH) — but also four other popular tokens
will be a springboard to new opportunities, both — Solana (SOL), Dogecoin (DOGE), Binance
in Malaysia and the region as a whole, as well as Coin (BNB) and Cardano (ADA).
across the entire crypto and blockchain ecosys-
tem,” Zhao added. Besides introducing more tokens, Fadzli said
providing utility, in the form of introducing trad-
Cuscapi executive chairman Datuk Datuk ing pairs between digital assets instead of only
Jayakumar Panneer Selvam described the col- ringgit fiat currency, to the crypto tokens remains
laboration between digital assets and payment one of the focus areas of the fintech group.
systems as “historic”.
“We are working very closely with regulators
It will create integration and synergy that will like the SC and Bank Negara Malaysia, and we
bring together the high potential of the use of cryp- are confident that we will find a way to execute
tocurrency to conduct commerce, while noting that the proposed offerings by addressing the con-
the potential for blockchain and smart contracts’ cerns and risk points of the regulators.
proliferation in our lives will be massive, he said.
“Beyond more coins, bridging coins directly
MX Global did not disclose the amount of Bi- together, like a digital asset to digital asset pair,
nance’s equity investment into the group. Cuscapi, is very important. If you are able to have more
meanwhile, said in a bourse filing that it has invest- coins, then you can do more than just buying
ed RM9 million into MX Global by subscribing to and selling them; there are a ton of things that
nine million RCPS at RM1 per share. we can do on platform and by integrating other
platforms,” Fadzli said.
This comes after The Edge, citing sources, re-
ported on Feb 28 that Binance was on the cusp of On the outlook for cryptocurrencies in the
acquiring a minority stake in MX Global, pending domestic market, Fadzli said the market is large
the SC’s approval, despite getting the nod from enough to support four licenced RMO-DAX,
the Companies Commission of Malaysia (CCM). adding that there is still a lot more to be done in
the nascent digital assets regulatory framework,
In an email response on the matter on Feb 25, which has already proven to be a good example
the SC said: “The SC does not confirm or com- for other markets.
ment on applications made to the SC”.
“Cryptocurrency is like the internet in the
Binance had been the subject of regulatory crack- 90s all over again, except this time, we do not
down by the SC in August last year, which resulted have a clear leader in the space and this is only
in an enforcement action taken against the world’s the beginning of something that could change
largest cryptocurrency exchange, which had since the world,” said Fadzli.
been banned from operating on all of its platforms,
from its website to mobile applications including
messaging appTelegram.

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world

Powell sees Fed rate lift-off in March
while Ukraine fogs outlook

by Craig Torres bloomberg
Bloomberg

WASHINGTON (March 2): Federal Re- Jerome Powell
serve (Fed) chair Jerome Powell has said
the central bank expects to raise interest “Making appropriate monetary policy urgent need to raise rates, with governor
rates later this month to tackle hot inflation in this environment requires a recognition Christopher Waller calling for 100 basis
amid a tight labour market while Russia’s that the economy evolves in unexpected points of tightening by mid-year.
invasion of Ukraine has added uncertainty ways,” he said. “We will need to be nimble Dot plot
to the US outlook. in responding to incoming data and the Fed officials will release fresh quarterly
evolving outlook.” estimates for interest rates and the econ-
“With inflation well above 2% and a omy at their March 15-16 meeting, offer-
strong labour market, we expect it will be No timing ing some guidance for how far and fast
appropriate to raise the target range for The Fed chair gave no timing on bal- they expect to tighten policy in the com-
the federal funds rate at our meeting later ance-sheet reduction, a decision that is ing months.
this month,” Powell said onWednesday in likely still pending for the Federal Open
remarks prepared for his appearance before Market Committee. After rate increases The Fed’s intent to remove its emergen-
the House Financial Services Committee. start, trimming assets “will proceed in a cy pandemic support, as well as the inva-
“The process of removing policy accom- predictable manner primarily through ad- sion of Ukraine, has taken a toll on finan-
modation in current circumstances will justments to reinvestment”, he said. cial markets.The S&P 500 is down 9.6%
involve both increases in the target range this year while 10-yearTreasury yields have
of the federal funds rate and reduction in Powell, whose confirmation for a second fallen sharply in recent days, reflecting per-
the size of the Federal Reserve’s balance term has been stalled by Republican op- ceived risks to growth as well as investors
sheet.” position to President Joe Biden’s selection seeking the security of safe havens.
of Sarah Bloom Raskin to be vice chair for
The hearing is scheduled to begin at supervision, faces the challenge of pivoting The Fed chair follows his remarks on
10am in Washington. policy to confront the highest inflation in Wednesday with an appearance before the
40 years, while not tightening so much Senate Banking Committee onThursday,
Powell said the labour market is “ex- that the economy stalls. where Powell is waiting for a confirmation
tremely tight”, essentially a message to vote together with Biden’s four other nom-
lawmakers that the central bank has met Critics, including some Republican law- inees for the Fed.
its maximum employment goal in current makers, said the US central bank has been
conditions, which opens the door to its in- too slow to act. Committee chair Sherrod Brown, a
flation fight. He said employers are having Democrat from Ohio, plans to try to hold
difficulties filling job openings, while work- The Fed’s preferred gauge of price another vote on Wednesday after Repub-
ers are quitting and taking new jobs, help- movements rose at a 6.1% annual pace licans boycotted the first one in an effort
ing wages rise at the fastest pace in years. in January, triple the central bank’s 2% to block Raskin, who they said has failed
target. Demand remains strong with to answer all their questions.
“We know that the best thing we can growth forecasts centering around 2.9%
do to support a strong labour market is this year, according to estimates tallied by Read also: US companies add more jobs
to promote a long expansion, and that is Bloomberg, while companies continue to than forecast, ADP data show Click here
only possible in an environment of price add employees at a robust pace. Mean-
stability,” Powell said, restating a line he while, some of Powell’s colleagues see an
has used several times now that interprets
the inflation fight in terms of preserving
the expansion.

‘Highly uncertain’
Financial markets have reeled since Rus-
sia’s invasion of Ukraine, sending energy
prices jumping and potentially pushing in-
flation higher, even as heightened tensions
cloud the outlook for global growth. Even
so, interest-rate futures markets are ful-
ly priced for a quarter-point interest-rate
increase later this month and several Fed
officials speaking since the invasion have
said they are still inclined to act.

Powell cautioned, however, that the
“near-term effects on the US economy
of the invasion of Ukraine, the ongoing
war, the sanctions, and of events to come,
remain highly uncertain”.

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Ukrainians say they are fighting on in
biggest city yet claimed by Russia

Reuters

WA S H I N G T O N / K Y I V / K H A R K I V tegically placed at the mouth of the Dnieper people, just stop the bombing and then sit
(March 2):Ukrainians said they were fighting River where it flows into the Black Sea. down at the negotiating table.”
on in the southern port of Kherson, the first ‘Logistical difficulties’
sizeable city Russia claimed to have seized, Zelenskiy advisor Oleksiy Arestovych de- Russia’s main advance on the capital — a
while Russian air strikes and bombardment nied that the city was fully under Russian huge armoured column stretched for miles
caused devastation in cities that Moscow’s control: “The city has not fallen, our side along the road to Kyiv — has been large-
bogged down forces have failed to capture. continues to defend,” he said. ly frozen in place for days,Western govern-
ments say. A senior US defence official on
After nearly a week, Russia has yet to Also in the south, Russia is putting intense Tuesday cited problems including shortages
achieve its aim of overthrowing Ukraine’s pressure on the port of Mariupol, which it of food and fuel, and signs of flagging morale
government, but has, according to the says it has surrounded in a ring around the among Russia’s troops.
Ukrainian emergency service, killed more entire coast of the Sea of Azov. The city’s
than 2,000 civilians and destroyed hospitals, mayor said Mariupol had been under intense “While Russian forces have reportedly
kindergartens and homes. shelling since late Tuesday and was unable moved into the centre of Kherson in the
to evacuate its wounded. south, overall gains across axes have been
Western countries are worried that its limited in the past 24 hours,” Britain’s Minis-
forces are now blasting their way into cities But on the other two main fronts in the try of Defence said in an intelligence update
they had expected to easily take. east and north, Russia so far has little to show onWednesday morning.
for its advance, with Ukraine’s two biggest
The most intensive bombardment has cities, Kyiv and Kharkiv, holding out in the “This is probably due to a combination
struck Kharkiv, a city of 1.5 million people in face of increasingly intense bombardment. of ongoing logistical difficulties and strong
the east, whose centre has been turned into Ukrainian resistance,” it added. Meanwhile,
a bombed-out wasteland of ruined build- “We are going to see... his brutality in- it said, Russia was carrying out intensive air
ings and debris. crease,” British Defence Secretary BenWal- and artillery strikes, especially on Kharkiv,
lace said of Putin in a radio interview. “He Kyiv, Mariupol and the eastern city of
“The Russian ‘liberators’ have come,” one doesn’t get his way, he surrounds cities, he Chernihiv.
Ukrainian volunteer lamented sarcastically, ruthlessly bombards them at night ... and he
as he and three others strained to carry the will then eventually try and break them and Close to 700,000 Ukrainians have fled the
dead body of a man wrapped in a bedsheet move into the cities.” country in less than a week, the fastest dis-
out of the ruins on a main square. placement of people in Europe for decades.
In Kyiv, the capital of 3 million people
After an air strike on Wednesday morn- where residents have been sheltering at night Click here to read the full story
ing, the roof of a police building in the cen- in the underground metro, Russia blasted
tre of the city collapsed as it was engulfed in the main television tower near a Holocaust Read also:
flames.Authorities said 21 people were killed memorial onTuesday, killing bystanders. Palladium gains as Ukraine crisis worsens;
by shelling and air strikes in the city in the gold edges lower Click here
past 24 hours, and four more on Wednes- Zelenskiy, in his latest update to his na-
day morning. tion, said that attack proved that the Rus- Apple, Ford, other big US brands join
sians “don’t know a thing about Kyiv, about corporate wave shunning Russia Click here
Apple, Exxon, Boeing and other firms our history. But they all have orders to erase
joined an exodus of companies around the our history, erase our country, erase us all.”
world from the Russian market, which has
left Moscow financially and diplomatically Earlier, a tired and unshaven Zelenskiy,
isolated since President Vladimir Putin or- wearing green battle fatigues in a heavily
dered the invasion last week. guarded government compound, told Reuters
and CNN in an interview that the bombing
“He thought he could roll into Ukraine must stop for talks to end the war.
and the world would roll over. Instead, he
met a wall of strength he could never antic- “It’s necessary to at least stop bombing
ipated or imagined: he met Ukrainian peo-
ple,” US President Joe Biden said in his an-
nual State of the Union address to Congress.

US lawmakers stood, applauded and
roared, many waving Ukrainian flags and
wearing the country’s blue and yellow col-
ours.

Russia said it had sent delegates for a sec-
ond round of peace talks in Belarus near
the border. Ukraine’s PresidentVolodymyr
Zelenskiy said Russia must stop bombing if
it wanted to negotiate.

Moscow said on Wednesday it had cap-
tured Kherson, a southern provincial capital
of around a quarter of a million people stra-

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(March 2): China is “extremely concerned” China holds talks anteed sovereignty Beijing frequently vows to
about the harm to civilians in Ukraine, For- with Ukraine, uphold. China hasn’t criticized Russia, and con-
eign MinisterWangYi (pic) told his Ukrainian further edging tinues to voice support its security concerns
counterpart in a call, in the latest indication and blame the US for precipitating the crisis.
of Beijing’s desire to prevent the war’s further away from Russia
escalation. China boasts deep economic ties with
Bloomberg Ukraine, andWangYi expressed concern over
Wang said the world’s second largest econ- the safety of Chinese citizens there, estimated
omy also “deplores the outbreak of conflict reuters at 6,000 when the invasion began. Beijing’s
between Ukraine and Russia,” according to a support is seen as essential to Moscow’s efforts
statement posted on the Ministry of Foreign China’s United Nations ambassador abstained to weather international sanctions, which are
Affairs website.The remarks were published from, rather than opposing, a Security Council cutting if off from huge swaths of the world’s
after a call betweenWang and Ukrainian For- resolution condemning the attack. trade, finance and travel.
eign Minister Dmytro Kuleba, the most sen-
ior exchange since Russia’s Vladimir Putin The call between Wang Yi and Kuleba Some 2,500 Chinese nationals have been
launched the invasion Thursday. came as convoys of Russian military vehicles relocated from Ukraine as of middayWednes-
bore down on the Ukrainian capital of Kyiv day, Foreign Ministry spokesmanWangWen-
Wang also acknowledged the conflict was and other major cities, prompting warnings bin said at a regular press briefing in Beijing.
a “war,” rather than a “special military oper- that Moscow could unleash a mass bombard- He sidestepped a question on whether Xi
ation” as described by Russia. Kuleba said ment on population centers. would speak with Ukrainian President Volo-
Ukraine was willing to strengthen communi- dymyr Zelenskiy, saying only that Beijing’s
cation with China and that it looked forward Still, China has refrained from publicly call- communication links with Kyiv were open.
to China’s “mediation for the realization of ing for a ceasefire or describing the war as an
the ceasefire,” according to the statement. “invasion,” and thus a violation of the UN-guar- During the call,WangYi said China always
upholds respect for sovereignty and territo-
“This is a very important event and signals rial integrity of all countries, and called on
the very high attention that the Chinese govern- Ukraine and Russia to “find a solution to the
ment is paying to the Ukraine crisis,” said Henry issue through negotiations,” according to the
Wang Huiyao, founder of the Center for China statement. China supports all constructive
& Globalization policy research group in Beijing. international effort conducive to “political
“If both Ukraine and Russia invite China to be settlement,” he added.
a mediator, then China would probably join.”
“As the war continues to expand, the top
The war is testing Chinese President Xi Jin- priority is to ease the situation to prevent the
ping’s commitment last month to a “no limits” conflict from escalating or even getting out of
relationship with Putin, as the US and its allies control, especially to prevent harm to civil-
pile on sanctions and press Beijing to take as ians, and to ensure the safe and timely access
stand against military aggression. In recent days, of humanitarian aid,” the Chinese Foreign
Xi has urged Putin to pursue negotiations and Minister said.

China moves to secure commodities rocked by Ukraine war

SINGAPORE (March 2): China’s top gov- by Jeff Sutherland, Jasmine Ng, rials to the industrial sector.
ernment officials have issued orders to pri- Winnie Zhu, Andrew Janes, Luz Ding China is heading into peak demand sea-
oritize energy and commodities supply se-
curity,sparked by concerns over disruptions & Zheng Wu son for many commodities, and the risk of
stemming from the Ukraine-Russia war. Bloomberg supply disruptions because of Russia’s inva-
sion of Ukraine will exacerbate rising pric-
Government agencies, including the ing the squeeze from the pandemic, supply es of everything from metals to fertilizers.
country’s top economic planning body chain pressures and geopolitics such as the
— the National Development & Reform diplomatic spat with Australia.The officials Buyers are already looking beyond Rus-
Commission — have been ordered to push did not provide specific guidance on how to sia and Ukraine for supplies as disruptions
state-owned buyers to scour markets for ensure supplies, leaving it to the agencies to set in.With Belarus’potash sector under US
materials including oil and gas, iron ore, map out, the people said. and European sanctions, China is now pay-
barley and corn to fill any potential gaps ing 139% more than what it did a year ago
brought on by the conflict, according to The NDRC didn’t reply to a fax seeking to secure imports from Canada and Israel.
people familiar with the matter.The offi- comment. Oil prices in London rose as much Click here to read the full story
cials made no mention of prices, the people as 7.7% onWednesday, while aluminum ex- Read also:
said, indicating the cost of imports isn’t a tended an advance to 1.3%. Corn futures in Russia may own US$140b worth of
focus right now. Chicago jumped 2.9% to the highest since Chinese bonds, says ANZ Click here
2012, and wheat surged 7.6%. India avoids condemning Putin to get
Ensuring supplies is of high priority for weapons for China fight Click here
the country, with officials worried about the The surge in commodities prices due to
impact surging global costs of commodi- the war is likely to complicate measures to
ties will have on the Chinese economy, the sustain China’s growth. Officials are expected
people said, requesting anonymity because to unveil further steps to support the econo-
they’re unauthorized to speak to the me- my as the National People’s Congress begins
dia. Beijing is ramping up its emphasis on this weekend, and the industry ministry has
energy and food security after already feel- warned against indiscriminate production
curbs that disrupt the supply of raw mate-

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MOSCOW/LONDON/CAIRO (March 2): OPEC+ makes ing. In January, the group pumped 972,000
OPEC and its allies agreed another mod- modest supply barrels a day less than its target, a report
est revival in supplies for April at a low-key hike as Russia from the group’s Joint Technical Commit-
meeting that was overshadowed by the mar- turmoil lifts price tee showed on Tuesday.
ket turmoil unleashed by Russia’s invasion
of Ukraine. BY DINA KHRENNIKOVA, GRANT SMITH, OPEC members including Iraq, Nigeria
SALMA EL WARDANY & BEN BARTENSTEIN and others, have failed reach their quotas, for
The 23-nation coalition led by Saudi Ara- reasons ranging from a lack of investment
bia ratified an increase of 400,000 barrels a Bloomberg to internal strife.That supply shortfall had
day onWednesday, continuing the gradual been a major driver of the rise in global oil
restoration of output halted during the pan- had come under pressure from the US to prices, before Russia’s attack on Ukraine
demic, according to a statement. raise output faster, but consumers are now lifted prices into triple-digit territory.
taking matters into their own hands. The
The modest monthly supply boost — International Energy Agency, which repre- In the event of a disruption, Saudi Arabia
which many members have been struggling sents major industrialized economies, said and some of its Gulf allies are the only coun-
to fully deliver as they grapple with capacity onTuesday that it will deploy 60 million bar- tries with large amounts of spare production
constraints — paled into insignificance in rels from emergency oil stockpiles around capacity.That raises the question of wheth-
a market rocked by Moscow’s military ag- the world. er OPEC+ could ever agree to compensate
gression and consumers’ counter-measures, for a shortage created byWestern sanctions,
which include a release from emergency fuel “The situation in energy markets is very given the stark split between Moscow and
stockpiles. Russia is the OPEC+ alliance’s serious and demands our full attention,” the international community over its mili-
second-biggest member. IEA Executive Director Fatih Birol said in tary aggression.
a statement. “Global energy security is un-
While the invasion hasn’t prompted der threat, putting the world economy at OPEC has handled many conflicts in
Western sanctions on Russian energy ex- risk during a fragile stage of the recovery.” its 60-year history, including bloody wars
ports, there are growing signs that reluctance between its own members.The group will
among traders and shipowners to handle The effort to cool prices didn’t work. meet again on March 31.
the country’s oil could bring about an em- Brent crude, the international benchmark, Read also:
bargo in all but name. Russia’s Urals crude rose as much as 7.7% to US$113.09 a bar- Sanctions on Russian energy ‘on the
was offered for sale at a record discount but rel onWednesday, the highest since 2013. table’, White House says Click here
found no bidders. Oil tops US$110 with Russian
The intervention from the IEA is partly supplies struggling for buyers
During Wednesday’s OPEC+ meeting, an acknowledgment of the fact that the Or- Click here
Mexico’s Energy Minister Rocio Nahle ganization of Petroleum Exporting Coun- Latin America not suited to pump
briefly raised a question about Russian oil tries and its allies would struggle to raise more amid US$100 oil, Russia risk
production, but there was no real discussion oil production faster, even if they were will- Click here
of the matter, delegates said, asking not to
be named because the meeting was private.

Consumer Concerns
Prior to previous OPEC+ meetings, Riyadh

Mayhem reigns in oil markets as traders avoid Russian supply

(March 2): Global oil markets are in a Bloomberg almost 10% of oil-product shipments. Oil
state of flux unlike anything traders say trading giantTrafigura Group tried to sell
they’ve seen in recent years as they grapple chains and keeping markets on edge,” a cargo of Russia’s flagship Urals grade this
with the sudden disappearance of saleable said John Driscoll, a Singapore-based week at a record discount to benchmark
products from the world’s second-biggest chief strategist at JTD Energy Services prices for northwest Europe but found no
exporter. Pte. The wild swings in intraday trading bidders, highlighting how toxic trade with
ranges, volatility and backwardation are the country has become.
The invasion of Ukraine has rapidly “scary,” he said.
made Russia a commercial outcast, result- Asian refiners are trying to snap up
ing in most buyers and shippers avoiding Commodity markets have been in tur- more Middle Eastern oil, although in-
cargoes of its crude, diesel, heavy naphtha moil since the invasion. While sanctions cremental supplies from the region are
and vacuum gasoil.That’s causing abrupt haven’t directly targeted Russian energy very limited, the traders said. More US
changes in market structures, price dislo- exports, trade has seized up amid a re- cargoes are also in their sights, but back-
cations and violent swings in freight rates. luctance to buy the country’s raw mate- wardation, surging transport costs and
rials. Oil majors, international banks and wild divergences in global benchmarks
The result is a physical market for crude shipowners are pulling investment and fi- are making that challenging. Their Eu-
too chaotic even for veteran oil traders who nancing, making it tough for refiners and ropean counterparts are looking to buy
have spent years deftly handling everything traders to secure credit lines and the ves- more North Sea crude, which may price
from political sanctions to trade wars and sels needed to continue with their usual Chinese and South Korean refiners out
attacks on key infrastructure. In the cur- purchases of oil grades like Urals, ESPO of that market, the traders said.
rent climate, traders say, even an action as and Sokol. Click here to read the full story
simple as a seller knowing what price to
offer their crude at has become confusing. Russia accounted for 12% of the
world’s total crude exports in 2020 and
“Geopolitics are throttling supply

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Russian markets break down with
cash frozen at the border

Bloomberg

(March 2):The Russian stock market has
been shut for days and officials are barring
any cash going to foreign investors. Funds
from London to NewYork have suspend-
ed trading.

For now at least, any financial asset
linked to Russia looks all but frozen. Even
commodity shipments, the country’s eco-
nomic lifeblood, are being disrupted and
some buyers have refused Russian oil.

As President Vladimir Putin steps up
the attack on Ukrainian cities and tougher
sanctions take effect, the country’s financial
ties to the outside world are breaking down.

Here’s a look at what’s happening in
markets:

Sovereign bonds other Russian stocks listed in the UK col- Funds
Russia paid a coupon due on ruble bonds lapsed. Europe is winding down and selling The index tracked by the biggest Russia-fo-
on Wednesday, but it’s not clear how for- units of Sberbank’s business in the region cused exchange-traded fund is being frozen
eigners will be able to access the cash af- after regulators said they were likely to fail. at its current state, the firm behind the gauge
ter the Central Bank banned transfers to said, while S&P Dow Jones said separately
foreign investors. Energy that no equity securities listed in or domiciled
Russia’s flagship Urals crude oil was of- in Russia will be added to its benchmarks,
Investors are still scrambling to under- fered for sale at a record discount but got even if they’re otherwise eligible.
stand whether or not the bonds could be no bidders, the latest indication that trad-
in default even after the 11 billion ruble ing of oil from the country’s western ports Reviews and rebalances for the MVIS
(US$98 million) payment that was widely is grinding to a halt. Consultant Energy Russia Index — tracked by theVanEck Rus-
expected. The Bank of Russia has intro- Aspects said about 70% of Russian crude sia ETF (ticker RSX) — have been suspend-
duced capital controls in a bid avert a ru- trade is currently frozen amid banking ed until the next regular review, MV Index
ble collapse after its foreign reserves were sanctions, spiking freight rates and wider Solutions said in a press releaseTuesday.The
frozen by international governments in political risks. firm said it may switch to prices for index
response to Russia’s invasion of Ukraine. companies that are generated on other ven-
The ruble fell for a third day, trading ues to make sure they are “more realistic.”
The restrictions could leave foreign in- as low as 110 per US dollar in onshore Read also:
vestors who held almost 3 trillion rubles markets.The currency slid as much as 8% Swiss tycoon Wyss says he is considering
(US$29 billion) in the so-called OFZ and a gap persisted between the ruble’s Abramovich offer to buy Chelsea —
debt at the start of February unable to value in Moscow and that in the overseas report Click here
collect income on their holdings — rais- interbank market.The offshore rate fell as
ing the specter of the nation’s first debt low as 122.25 per dollar. Russia billionaires move superyachts
default since 1998. The transfer of the to Maldives as sanctions tighten, data
coupon was reported Wednesday after- “It’s really like putting a finger in the shows Click here
noon on the website of the National Set- air to predict ruble at the moment,” said
tlement Depositary. Mitul Kotecha, chief emerging-market Asia Honda suspends exports to Russia,
and Europe strategist at TD Securities in more Japanese automakers could
“Unless it reaches all holders, they can’t Singapore. follow Click here
deny default,” Paul McNamara, a portfo-
lio manager at GAM Investments, said of Corporate bonds Russian aviation sector isolated as
the coupon onWednesday. “They can’t say Russian corporate debt denominated in Boeing suspends parts, maintenance
they paid with any conviction.” foreign currencies are indicated at dis- Click here
tressed levels and there are questions over
Russia will keep local stock trading whether any trades are going through.
closed for a third day as its wealth fund
prepares to deploy billions of dollars to Investors are sweating over whether
buy the country’s stocks. companies like Gazprom and Rosneft will
be able to make their coupon payments,
The shuttering of trading on the Mos- which come due next week.
cow bourse is its longest closure for ex-
traordinary circumstances since October
1998, according to the exchange.

Sberbank of Russia PJSC’s depositary
receipts traded at a penny in London and

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SINGAPORE (March 2): Russia’s inva- War risks raising While India said both sides should refrain
sion of Ukraine could lead to prolonged food prices in from violence and return to talks, China
supply chain disruptions in Asia that could Asia, Ukraine has become a little more critical with For-
cause a spike in food prices if countries envoy warns eign Minister Wang Yi saying it “deplores
do not act to support the government in the outbreak of conflict”. China’s top gov-
Kyiv, Ukraine’s Ambassador to Singapore BY PHILIP J HEIJMANS ernment officials have now issued orders to
Kateryna Zelenko said. Bloomberg secure commodity supplies due to concerns
of further disruptions stemming from the
The two countries account for more than its defence capabilities as Russian forces Ukraine-Russia war.
a quarter of the global wheat trade and about move in on its biggest cities. “We speak
80% of sunflower oil cargoes. The war is about the potential threat in case the coun- Japan and Singapore by contrast
threatening to further disrupt supplies to try will not be able to export food,” she announced planned sanctions against
big buyers such as China and India at a time said. “The dimensions and the level of Russia, including on banks, and export
when food inflation is already high. devastation are very high, so if the fields controls. As a trade-dependent nation,
are dead, destroyed, and damaged, it will Singapore is especially vulnerable to in-
“The implications of this full-fledged war definitely have implications.” flated food costs.
in the very heart of Europe will be felt on
every corner of the globe,” Zelenko said. Ukraine counts China and India as major As Ukraine’s envoy to Singapore, Zelenko
“Ukraine is considered to be one of the trading partners with exports to the former said she has approached companies in the
major exporters of essential food products reaching US$1.71 billion in 2020, according city state that have operations in her country
globally, also to Asia.We of course can see to the State Statistics Service of Ukraine. to solicit their support. Companies that fit
the rising prices of oil and gas, which will However, both countries have abstained that profile include Wilmar International,
be also felt in the Asian region.” from a United Nations Security Council Olam International Ltd, and Food Empire.
resolution condemning Russia’s invasion
Shipments have already come to a stand- of Ukraine. “We are really trying now to mobilise the
still. Russia and Ukraine are also responsi- resources of the many companies operating
ble for about a fifth of the world’s corn and in Ukraine and beyond to support the peo-
barley shipments and the grain disruptions ple on the ground,” she said. “There is still
are threatening to drive up global food pric- a long way to go.”
es when costs are already at a decade high. Read also: Wheat soars to 14-year high as
Russia invasion chokes trade Click here
Zelenko said that Ukraine’s resources
are now mobilised around strengthening

(March 2): Cryptocurrencies continued to Bitcoin keeps geopolitical uncertainty, Bitcoin is outper-
pull away from stocks as the intensifying pulling away from forming gold, which is known as a safe-ha-
war in Ukraine prompts investors to look ven asset,” said Marcus Sotiriou, an analyst
for safe havens. stocks roiled by at UK-based digital asset broker Global-
Ukraine war Block. Gold slipped 0.2% on Wednesday
Bitcoin advanced as much as 2% to after rallying since late January.
US$44,767 (RM187,824) in early trad- Bloomberg
ing in Hong Kong before giving up some As evidence mounts of a crypto re-
gains. It has jumped 18% over the past BLOOMBERG bound, retail investors appear to be piling
three days — a period during which Pres- in. Most of the accumulation in Bitcoin
ident Vladimir Putin stepped up shelling amid concerns about central bank tight- over the last week came from smaller in-
of Ukrainian cities and other nations re- ening. Other so-called alt-coins suffered vestors, according to data from Glassnode.
sponded with additional sanctions against even steeper declines. The researcher cited significant buying
Russia. The MSCI AC World Index has increases in wallets with less than 1,000
fallen in nine of the past 10 sessions, in- But the past few days of broad gains Bitcoins — with those with less than one
cluding the last three. in digital tokens have kindled the notion Bitcoin being the most aggressive.
that, at least, they offer protection from
“This geopolitical environment is cer- governments that can seize other types of Noelle Acheson, head of markets insight
tainly a tailwind for crypto,” said Jonathan assets, as some have recently vowed to do at Genesis Trading, said that while this
Cheesman, head of over-the-counter and to Russian oligarchs. metric can be unreliable as large holders
institutional sales at crypto-derivatives ex- spread their holdings over multiple wal-
change FTX, in a note Tuesday (March It’s “fascinating that, after a week into lets, it may hint at who’s driving Bitcoin’s
1). “This situation highlights the use case recent rally.
for a decentralised, neutral, algorithmic
safe haven.” “This does not necessarily mean that
retail is piling in, but it does hint that re-
The Bloomberg Galaxy Crypto Index tail investors, who have largely stayed away
rose 4.5% onTuesday, the fifth straight day for at least the past year, are coming back
of gains. Ether was up 17% to US$3,004 and bringing new investors with them,”
at 5.50pm in Hong Kong on Wednesday Acheson said in a tweet. “The case for
(March 2). accumulation seems to have acquired a
large group of new believers.”
Bitcoin proponents have for years tout- Read also: Binance CEO says blocking all
ed its virtues as a hedge against conflict Russians from crypto exchange is ‘unethi-
and inflation, citing its borderless nature cal’ Click here
and fixed supply. That image was dented
by a crypto rout that started in November
and sent Bitcoin tumbling as much as 52%

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Hong Kong
braces for
lockdown as daily
cases breach

55,000

BY ANNIE LEE & MICHELLE FAY CORTEZ
Bloomberg

(March 2): Hong Kong reported a record make the process as quick and comprehen- “We especially want to note for families
of more than 55,000 daily new infections on sive as possible. considering traveling to or residing in Hong
Wednesday as the city’s spiraling outbreak Kong that in some cases, children in Hong
sees thousands of residents flee while those People will be able to get their needs Kong who test positive have been separat-
remaining strip shelves of food and medicine. met even during the mass testing effort, she ed from their parents and kept in isolation
said, ruling out a “wholesale” city lockdown, until they meet local hospital discharge re-
The figure is up from 32,597 a day ear- though she did not clarify how the mass test- quirements.”
lier. Health authorities also announced 117 ing would be conducted and when.
deaths, mostly people from care facilities, and Local media reports have differed on the
said there are 64 patients in critical condi- The information vacuum has exacerbated details of the upcoming lockdown, sowing
tion in hospital. deteriorating conditions in Hong Kong as its confusion. HK01 reportedWednesday that
outbreak becomes one of the deadliest in the there would be a four-day limited lockdown
The continued spike in cases comes amid world.The city’s loss of control is a real-world at the end of March, and CableTV said the
growing chaos and confusion around the illustration of the limits of the Covid Zero city will set a time limit for residents to buy
city’s plan to test the whole population of strategy in the face of more transmissible groceries. Stories from Sing Tao Daily and
7.4 million three times in March, with du- variants like Omicron. the South China Morning Post a day earlier
eling local media reports about the length triggered panic-buying with details of a strict
and strictness of the lockdown to occur while US warnings nine-day lockdown planned for the middle
testing is conducted. The uncertainty about how residents will be of March.
treated, and rising case and death rates, led
On Wednesday afternoon, after over a US authorities to warn against travel to the Many among the anxious population,
week out of the public eye, Chief Execu- city. The US State Department raised its which just two months ago were living
tive Carrie Lam sought to reassure residents travel advisory to a Level 4 — Do NotTrav- in largely virus-free conditions, have had
during a television interview from a railroad el — because of Covid and related restric- enough.There were 43,689 net departures
yard, after the first train-load of goods from tions, while the Centers for Disease Control from the city in the past two weeks, the most
mainland China to the city arrived as part and Prevention bumped its travel alert two since the start of the pandemic, according
of a new program to stabilize import flows. places to “high.” to government data.

China will ensure Hong Kong has enough The zero-tolerance approach to Covid-19 In a bear case — where the Covid out-
food and other supplies during the Covid by Hong Kong and China “severely impacts break peaks late in the second quarter —
outbreak, said Lam, urging residents to stop travel and access to public services,” the US Bank of America Corp analysts estimate 2%
their panicked purchasing. There will also Consulate General Hong Kong and Macau to 3% of Hong Kong’s population could
be unlimited supplies of medical equipment said in an email. depart every month.
available, she said.

Lam acknowledged that there won’t be
enough beds to isolate everyone found to
be infected with the virus during the city-
wide testing program, though she vowed to

Nerve damage may explain some cases of long Covid, says US study

CHICAGO (March 2): A small study of Reuters Neuroimmunology & Neuroinflammation.
patients suffering from persistent symp- As many as 30% of people who have
toms long after a bout of Covid-19 found a Covid-19 infection and lasts at least two
that nearly 60% had nerve damage possibly months. Covid-19 are believed to develop long
caused by a defective immune response, Covid, a condition with symptoms rang-
a finding that could point to new treat- “I think what's going on here is that the ing from fatigue, rapid heartbeat, short-
ments, US researchers reported on Tues- nerves that control things like our breathing, ness of breath, cognitive difficulties, chronic
day (March 1). blood vessels and our digestion in some cases pain, sensory abnormalities and muscle
are damaged in these long Covid patients,” weakness.
The study involved in-depth exams of said DrAnne Louise Oaklander,a neurologist Click here to read the full story
17 people with so-called long Covid, a con- at Massachusetts General Hospital and a lead
dition that arises within three months of author on the study published in Neurology:

T H U R S D A Y M A R C H 3 , 2 0 2 2 26 T H E E D G E C E O M O R N I N G B R I E F

WORLD

STOCKHOLM (March 2): Shares in Er- Ericsson slides bribery in China,Vietnam and Djibouti, and
icsson, at the centre of a scandal over poten- after DoJ warns agreed to cooperate with the department for
tial payments to Islamic State, slumped on of deal breach ongoing investigations.
Wednesday after the US Department of Jus- over Iraq probe
tice said it was in breach of a 2019 deferred The company’s dealings in Iraq emerged
prosecution agreement (DPA) for failing to BY SUPANTHA MUKHERJEE last month when, in response to media re-
fully disclose details of its operations in Iraq. & JOHAN AHLANDER ports of bribery, Ericsson said that an inter-
Reuters nal probe from 2019 had identified payments
The DOJ said the Swedish telecoms com- designed to circumvent Iraqi customs at a
pany had failed to make sufficient disclosures it was too early to predict the outcome of the time when militant organisations, including
about its activities in Iraq before entering breach, including potential fines. Islamic State, controlled some routes.
into the 2019 agreement and failed to make
subsequent disclosures after the deal was “We need to understand what that means “The investigation could not identify
signed, according to a statement from Er- in detail.We received a communication last that any Ericsson employee was directly in-
icsson onWednesday. night that there was insufficient disclosure,” volved in financing terrorist organizations,”
Ekholm said. the company said onWednesday.
“It’s quite clear that we’ve had short-
comings in the past,” Ericsson CEO Borje Under the conditions of the 2019 DPA, Since details of its probe were published
Ekholm told Reuters. “We have the DPA Ericsson paid more than US$1 billion to re- last month, Ericsson has lost more than a
which outlines that we had systemic inter- solve a series of corruption probes, involving third of its market value.
nal control failures and I would add that we
had a culture that didn’t allow us to capture “While it might be a bit early to predict
wrongdoings.” the outcome all options remain open,” Pao-
lo Pescatore, an analyst at PP Insights told
The company, whose shares sank 13%, Reuters of the DPA breach. “Nothing can
said it was cooperating with the DoJ and that be ruled out, whether that be more rigorous
actions by the authorities or further fines.”

BLOOMBERG

Ford reorganises
to run EV and

engine businesses
separately

BY ED LUDLOW & KEITH NAUGHTON
Bloomberg

SAN FRANCISCO/DETROIT (March 2): the 600,000 it is aiming for in 2024.The auto- erations, he and Ford have said there are no
Ford Motor Co will separate its fast-growing maker also is now targeting adjusted earnings plans for such a move.
electric vehicle (EV) operations from its leg- before interest and taxes of 10% by 2026, up
acy combustion engine business in a historic from as much as 8% expected for this year. Farley has been working closely with
reorganisation of the 118-year-old company. Doug Field, the former head of Apple Inc’s
Accelerating Ford’s transition to a bat- car project, on reviewing Ford’s operational
The newly formed Ford Model e unit will tery-electric future has been a major focal and manufacturing structure to prepare for
scale up the automaker’s EV offerings and point for Farley. He raised the automaker’s the company ramping up its EV offerings. It
develop software and connected-vehicle tech- wager on EVs months after taking over as has boosted output of the electric Mustang
nology and services for all of the company. CEO. Bloomberg News first reported last Mach-E and prepared more production ca-
Ford Blue will focus on combustion vehicles, month that the company was contemplat- pacity for the F-150 Lightning pickup going
cutting costs and simplifying operations. ing a further increase in expenditures towards on sale this spring.
EVs, and that Farley had wanted to wall off
Ford’s ambition will be “to become a electric operations from Ford’s internal com- Ford shares have soared 151% since Far-
truly great, world-changing company again, bustion engine business. ley became CEO in October 2020.While the
and that requires focus”, chief executive of- stock has pulled back since mid-January, its
ficer (CEO) Jim Farley said in a statement Implementing major structural change at US$66.9 billion market capitalisation was
onWednesday. “We are going all in, creating Ford requires the backing of the company’s slightly ahead of General Motors Co’s at the
separate but complementary businesses that founding family, which controls the automak- close of trading onTuesday.
give us start-up speed and unbridled inno- er through a special class of stock.While Far- Read also: Ford to boost EV spending
vation.” ley has considered spinning off either its EV or to US$50 billion after historic split
combustion engine businesses to raise funds Click here
The shake-up — along with new targets for and possibly earn higher market valuations,
higher EV production and overall profitability according to people familiar with the delib-
— sent Ford shares up as much as 5.4% to
US$17.60 before the start of regular trading.

Fresh targets
Ford said it plans to be able to make two mil-
lion EVs annually by 2026, a big step-up from

T H U R S D A Y M A R C H 3 , 2 0 2 2 27 T H E E D G E C E O M O R N I N G B R I E F

WORLD

REUTERS

IN BRIEF

Citigroup America during her predecessor Michael Geely-backed Ecarx weighs
woos skeptical Corbat’s eight years at the helm. SPAC merger at US$4 bil value
investors with (March 2:) Smart car technology
new profitability Citigroup said its expense efficiency ra- company Ecarx Co, whose backers
tio will improve to 60% to 63% in the near- include Zhejiang Geely Holding
targets term, compared to 65% in 2021. For the Group Co, is considering seeking
medium-term, that metric is expected to a US listing via a merger with a
BY DAVID HENRY & NOOR ZAINAB HUSSAIN be less than 60%, the bank added. blank-check company, according
Reuters to people with knowledge of the
For the current quarter, the bank also matter. Ecarx is working with
NEW YORK (March 2): Citigroup Inc is expects a mid-single digit decline in total an adviser to explore a deal that
aiming for a medium-term return on eq- revenue, excluding divestiture impacts. could value the combined entity
uity of 11% to 12%, an improvement from at about US$4 billion, the people
its recent performance, in new profitability The bank, which said its priority was to said, asking not to be identified
targets set onWednesday at its first investor return capital, expected to return dividends as the information is private. The
day in five years. of nearly US$1 billion in the first quarter company is weighing reaching
of 2022. It is looking to build to about 12% out to regulators in the country
Analysts had been looking for a medi- of Common Equity Tier 1 ratio. for approval for a special purpose
um-term return on tangible capital equi- acquisition company merger, one
ty (RoTCE) goal of 12% along with de- Share repurchases in the quarter will be of the people said, in order to
tails on how it can be achieved.The metric in line with prior guidance. satisfy new requirements unveiled
measures how well a bank uses shareholder in December. Separately, Geely
money to produce profit. The Ukraine crisis and disruptions from is talking to advisers about a
the pandemic are adding to Fraser’s chal- potential funding round for its
Before Citigroup can deliver on its me- lenge. commercial vehicles unit that
dium-term profitability target, it has to could value it at as much as US$4
weather a between 5% and 6% increase Citigroup said on Monday its total expo- billion, people familiar with the
in expenses this year excluding the impact sure to Russia amounted to nearly US$10 matter said. The round could raise
of divestitures, and it has to see revenue billion, far higher than previously commu- a few hundred million dollars, one
growth accelerate. nicated. of the people said. — Bloomberg

The bank has spent more in the past few On the same day, Fraser had to switch Click here to read the full story
quarters to fix issues regulators identified the investor day event from being held
in its control systems and costs have also in-person to virtual after her two top ex- Netflix snaps up Finnish ‘Stranger
risen recently due to a battle for talent on ecutives tested positive for Covid-19. Things’ game developer
Wall Street that has prompted global banks (March 2): Netflix Inc offered to buy
to offer perks like higher pay and bonuses. Citigroup said its outlook for the medi- a Finnish mobile games studio that’s
um-term includes having revenue growth making a title based on the former’s
In premarket trading, the bank’s shares accelerate and increase at a 4-5% com- hit streaming series “Stranger Things”.
were down about 3.5%. Investors have pounded annual rate, lead by gains in its The US company said in a statement
learned to be skeptical of Citigroup’s tar- corporate payments business, as well as on Wednesday that it had offered
gets because the bank has failed to meet global wealth management. 2.10 euros (US$2.33) a share for Next
those it has set in the past. Games Oyj in a deal with a total equity
The Wall Street bank defined “medi- value of about 65 million euros. It’s
The March 2 investor day comes just um-term” as three to five years, adding the been unanimously recommended by
over a year since 54-year-old Jane Fraser target assumes a healthy economic environ- the Next Games board, it said. Shares
became chief executive at the fourth-big- ment, overnight interest rates rising to 2%, of the Finnish company jumped more
gest US bank by assets. loan growth of 6-7% annually, and revenue than 120% in Helsinki to trade, in
and deposit growth of 4-5%. line with the offer price. The deal is
Fraser was tasked with transforming a another sign Netflix is advancing on
business whose share price lagged rivals The bank said it expects cost of credit its ambition to make video games
like JPMorgan Chase & Co and Bank of to normalize in the near term. an important extension of its online
streaming business. Last year, it
Since Fraser became the CEO, Citi’s hired Mike Verdu as president of
shares had fallen 11% through Tuesday games development and in November
while the index of S&P 500 bank stocks introduced its first five mobile titles,
has gained 7%. and in September said it had acquired
Read also: UniCredit would take €1 billion its first game developer, Night School
hit from Russia business write-off — sourc- Studio. — Bloomberg
es Click here

T H U R S D A Y M A R C H 3 , 2 0 2 2 28 T H E E D G E C E O M O R N I N G B R I E F

MARKETS

CPO RM 6,749.00 450.00 OIL US$ 101.91 3.94 RM/USD 4.1932 RM/SGD 3.0988 RM/AUD 3.0501 RM/GBP 5.6315 RM/EUR 4.6946

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)

SMTRACK BHD 130.80 -0.005 0.220 15.79 163.7

HIBISCUS PETROLEUM BHD 98.80 0.000 1.220 49.69 2449.2

BUMI ARMADA BHD 78.6 0.000 0.465 -1.06 2746.8

CIMB GROUP HOLDINGS BHD 66.9 -0.260 5.030 -7.71 51413.9

FITTERS DIVERSIFIED BHD 63.3 -0.035 0.205 -34.92 95.9

SAPURA ENERGY BHD 62.4 0.000 0.040 -20 639.2

TANCO HOLDINGS BHD 60.9 -0.005 0.165 -31.25 276

VELESTO ENERGY BHD 59.1 0.005 0.130 8.33 1068

DAGANG NEXCHANGE BHD 58.8 0.020 1.140 50 3597.1 World equity indices

SIN HENG CHAN MALAYA BHD 45.6 0.000 0.515 14.44 150.8

TDM BHD 40.4 0.010 0.300 33.33 516.9 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

KNM GROUP BHD 39.5 0.010 0.165 10 606.5 (%) (%)
DOW JONES 33,294.95 -597.65 -1.76 INDONESIA 6,868.40 -53.04 -0.77
MY EG SERVICES BHD 38 0.005 0.965 -9.81 7129

RIMBUNAN SAWIT BHD 34.1 0.015 0.295 43.90 602.3 S&P 500 4,306.26 -67.68 -1.55 JAPAN 26,393.03 -451.69 -1.68

PUBLIC BANK BHD 31.8 -0.010 4.410 6.01 85601.2 NASDAQ 100 14,005.99 -231.82 -1.63 KOREA 2,703.52 4.34 0.16

TA WIN HOLDINGS BHD 30.9 -0.005 0.145 16 495 FTSE 100 7,379.47 49.27 0.67 PHILIPPINES 7,304.02 -100.59 -1.36

WIDAD GROUP BHD 29.7 0.005 0.340 -6.85 935.9 AUSTRALIA 7,116.66 20.11 0.28 SINGAPORE 3,244.40 -34.23 -1.04

VINVEST CAPITAL HOLDINGS BHD 29.2 0.000 0.535 16.30 518.5 CHINA 3,484.19 -4.64 -0.13 TAIWAN 17,867.60 -30.65 -0.17

NICHE CAPITAL EMAS HOLDINGS BHD 26.6 0.015 0.185 42.31 162.3 HONG KONG 22,343.92 -417.79 -1.84 THAILAND 1,689.81 -4.47 -0.26

MATANG BHD 26.6 0.000 0.105 16.67 228.1 INDIA 55,411.33 -835.95 -1.49 VIETNAM 1,485.52 -13.26 -0.88

Data as compiled on Mar 2, 2022 Source: Bloomberg Data as compiled on Mar 2, 2022 Source: Bloomberg

Top gainers (ranked by %) Top losers (ranked by %)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

DAYA MATERIALS BHD 0.010 100.0 203.0 0.00 20.4 EA HOLDINGS BHD 0.010 -33.330 2049.9 -50.00 64.5

PASUKHAS GROUP BHD 0.02 33.33 1839.7 -20 31.7 GREEN OCEAN CORP BHD 0.020 -20.000 1244.0 -33.33 42.2

METRONIC GLOBAL BHD 0.020 33.3 343.00 0.00 43.4 BORNEO OIL BHD 0.025 -16.670 7494.3 -16.67 186.7

SCOMI GROUP BHD 0.025 25.0 44.10 25.00 27.3 IREKA CORP BHD 0.645 -15.690 4113.4 -15.69 146.9

SANICHI TECHNOLOGY BHD 0.030 20.0 310.6 20.00 42.1 FITTERS DIVERSIFIED BHD 0.205 -14.580 63270.9 -34.92 95.9

EA TECHNIQUE M BHD 0.040 14.3 922.6 -50.00 21.2 NATIONWIDE EXPRESS HOLDINGS 0.030 -14.290 1323.0 -79.31 3.7

CUSCAPI BHD 0.470 13.3 13988.5 67.86 444.1 ALAM MARITIM RESOURCES BHD 0.030 -14.290 271.40 20 45.9

CITRA NUSA HOLDINGS BHD 0.085 13.3 882.00 13.33 61.2 SMILE-LINK HEALTHCARE GLOBAL 0.190 -11.630 200.0 -2.56 47.6

HANDAL ENERGY BHD 0.185 12.1 186.8 -7.50 42.7 DATAPREP HOLDINGS BHD 0.235 -11.320 24485.6 -70.99 158.1

SCOMI ENERGY SERVICES BHD 0.050 11.1 335.5 -9.09 23.4 MCLEAN TECHNOLOGIES BHD 0.24 -11.11 1224 0 47.3

GOPENG BHD 0.525 9.4 677.7 28.05 211.8 JERASIA CAPITAL BHD 0.040 -11.110 1013.7 -75.00 3.3

DYNAFRONT HOLDINGS BHD 0.350 9.4 50 29.63 37.8 TRIVE PROPERTY GROUP BHD 0.080 -11.110 537.2 166.67 101.1

PAN MALAYSIA HOLDINGS BHD 0.060 9.1 462.7 -25.00 55.7 BAHVEST RESOURCES BHD 0.345 -10.390 6819 -21.59 426.1

NETX HOLDINGS BHD 0.12 9.09 404 -17.24 100.3 SAUDEE GROUP BHD 0.045 -10.000 1987.2 -18.18 44.6

NICHE CAPITAL EMAS HOLDINGS BHD 0.185 8.8 26616.7 42.31 162.3 IQZAN HOLDING BHD 0.045 -10.000 413.8 -10.00 10.0

LIEN HOE CORP BHD 0.385 8.5 4 5.48 128 CME GROUP BHD 0.050 -9.090 1146.1 -16.67 48.4

TWL HOLDINGS BHD 0.065 8.3 1530.5 30.00 168.4 KIA LIM BHD 0.350 -9.090 69.3 -27.84 21.7

IVORY PROPERTIES GROUP BHD 0.13 8.33 100 4 63.7 BRIGHT PACKAGING INDUSTRY BHD 0.200 -9.090 5.5 -11.11 41.1

ATTA GLOBAL GROUP BHD 0.390 8.3 41.5 -2.50 85.5 KUMPULAN JETSON BHD 0.16 -8.57 1744.8 -23.81 42.9

WTK HOLDINGS BHD 0.555 7.77 12536.4 21.98 260 VIZIONE HOLDINGS BHD 0.055 -8.330 12801.1 -31.25 63.1

Data as compiled on Mar 2, 2022 Source: Bloomberg Data as compiled on Mar 2, 2022 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)

KUALA LUMPUR KEPONG BHD 27.400 1.360 10497 25.80 29,541.50 MALAYSIAN PACIFIC INDUSTRIES 34.36 -0.86 430.4 -30.39 6834.1

NESTLE MALAYSIA BHD 136.300 0.800 44.5 1.56 31,962.40 HONG LEONG CAPITAL BHD 6.55 -0.35 2,468.80 -10.03 1617.2

BATU KAWAN BHD 27.180 0.720 138.8 19.74 10,710.80 HEINEKEN MALAYSIA BHD 21.88 -0.32 30.6 4.99 6609.9

FRASER & NEAVE HOLDINGS BHD 22.980 0.360 137.3 -7.11 8,428.60 D&O GREEN TECHNOLOGIES BHD 4.42 -0.30 3598.4 -25.08 5468.2

SIME DARBY PLANTATION BHD 5.220 0.310 26,094.50 38.83 36100 PETRONAS DAGANGAN BHD 20.12 -0.28 607.9 -2.33 19988.3

TA ANN HOLDINGS BHD 5.360 0.310 11,094.90 52.71 2,360.90 CIMB GROUP HOLDINGS BHD 5.03 -0.26 66917.4 -7.71 51413.9

PMB TECHNOLOGY BHD 18.740 0.280 148.6 52.61 4,001.80 SAM ENGINEERING & EQUIPMENT 5.21 -0.27 236.0 -6.96 2820.7

GENTING PLANTATIONS BHD 9.390 0.280 7,032.00 40.15 8424.7 GREATECH TECHNOLOGY BHD 3.89 -0.25 6423.7 -42.20 4870.8

PRESS METAL ALUMINIUM HOLDINGS 7.070 0.280 10,547.80 22.32 57,098.90 VITROX CORP BHD 7.37 -0.17 293.2 -26.00 6961.4

AYER HOLDINGS BHD 5.750 0.250 20.2 2.86 430.40 HARTALEGA HOLDINGS BHD 4.70 -0.16 2589.3 -17.98 16062.1

PPB GROUP BHD 18.280 0.220 1484.2 6.90 26,005.10 KLUANG RUBBER CO MALAYA BHD 4.10 -0.15 19.9 3.54 256.4

CHIN TECK PLANTATIONS BHD 8.600 0.200 35.8 21.99 785.7 DUFU TECHNOLOGY CORP BHD 2.68 -0.15 1498.4 -37.53 1417.8

SARAWAK OIL PALMS BHD 6.480 0.190 4,240.80 85.67 3,705.80 HONG SENG CONSOLIDATED BHD 3.19 -0.15 5233.1 18.59 8146.8

PETRONAS CHEMICALS GROUP BHD 9.77 0.17 15379.7 9.53 78160 BERJAYA FOOD BHD 3.05 -0.14 1467.4 41.86 1099.6

RAPID SYNERGY BHD 9.700 0.160 103.4 -2.51 1,036.90 YINSON HOLDINGS BHD 4.98 -0.13 1363.9 -17 5308.2

UNITED MALACCA BHD 5.95 0.14 64.5 15.31 1248.1 KOBAY TECHNOLOGY BHD 3.73 -0.13 949.8 -38.14 1209.2

QL RESOURCES BHD 4.900 0.140 616.9 7.22 11,924.90 CARLSBERG BREWERY MALAYSIA 20.30 -0.12 24.9 1.10 6206.7

ORIENTAL HOLDINGS BHD 6.19 0.13 75.1 17.9 3840 OM HOLDINGS LTD 2.86 -0.12 184 1.06 2112.5

CHIN HIN GROUP BHD 2.690 0.130 3113.1 3.07 2379.9 IREKA CORP BHD 0.645 -0.120 4,113.4 -15.69 146.9

MALAYSIA SMELTING CORP BHD 5.320 0.130 1,725.30 63.69 2234.4 KESM INDUSTRIES BHD 10.50 -0.12 3 -14.5 451.7

Data as compiled on Mar 2, 2022 Source: Bloomberg Data as compiled on Mar 2, 2022 Source: Bloomberg