The Edge - 21 April 2022

THURSDAY, APRIL 21, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 367/2022

CEOMorningBrief

COMPOUND MAY END SERBA DINAMIK OFFICIALS’
NIGHTMARE BUT NOT THAT OF MINORITIES p4

THURSDAY, APRIL 21, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 367/2022

CEOMorningBrief
HOME: Petronas says to increase crude oil production capacity at Iraq’s Garraf oilfield p6
Ex-1MDB CFO: KPMG ‘adamant’ on meeting Najib before signing off on 2013 audit p8
Cabinet unanimously agrees to proceed with littoral combat ships procurement — Hishammuddin p10

WORLD: Fed’s aggressive rate hike plans jolt policy in China and Japan p16
FEATURE: What Singapore’s next leader says about China, racism and expats p25

Caely’s bank
accounts frozen on

MACC’s orders

Report on Page 3.

4.1158

APR 20, 2021

Ringgit hits 4.28 against US dollar, 4.2815
lowest since June 2020
APR 20, 2022
Report on Page 2.

THURSDAY APRIL 21, 2022 2 THEEDGE CEO MORNING BRIEF

HOME

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Ringgit hits 4.28 against US dollar,
lowest since June 2020

BY SYAFIQAH SALIM US Dollar Index (DXY) Performance of the ringgit
theedgemarkets.com from Jan 2021 versus Brent crude

KUALA LUMPUR (April 20):The ring- 105 100.329 US$ vs Ringgit Brent crude
git on Wednesday (April 20) weakened 3.7 (US$ per barrel)
further against the US dollar, depreciat- 100
ing below RM4.28 — the lowest level in 150
22 months — although crude oil prices
have been staying at above US$100 per 95 3.9
barrel. 100
90
The local currency appears to have 89.869 4.1
diverged from the crude oil price trend 50
in recent months.The ringgit did not ap- 85
preciate against the greenback when the Jan 4, 2021 4.3
crude oil prices climbed further as it usu-
ally did in the past. Apr 20, 2022 4.5 0
April 19, 2019 April 20, 2022
At 6pm, the local note eased further to Note: Accurate as at 7pm April 20, 2022
4.2800/2830 against the US dollar from Source: Bloomberg Source: Bloomberg
4.2505/2515 at Monday’s close.
However, DBS Group Research noted US$ vs ringgit
Meanwhile, the ringgit also traded the US Fed does not dominate the gyra-
mostly lower against a basket of major tions in the global rates space. 4.0
currencies.
“Attention has now shifted to the Eu- 4.1158
It weakened against the Singapore ropean Central Bank (ECB) and per- 4.1
dollar to 3.1371/1398 from 3.1228/1240 haps greater recognition that fiscal poli-
on Monday but the ringgit was stronger cies might stay loose in the eurozone for 4.2 4.2815
against the Japanese yen at 3.3432/3458 some time. If the ECB is serious about Apr 20, 2022
from 3.3569/3579 previously. containing inflation, implied real rates 4.3
have to climb. Apr 20, 2021
The local currency was also weaker
against the British pound at 5.5781/5820 “Aside from the US Fed, only the ECB Source: Bloomberg
from 5.5303/5316 on Monday and low- is able to exert this much influence on
er against the euro at 4.6468/6501 from global rates. In any case, EUR rates mat- lar, outside its month-long range between
4.5867/5878. ter and could contribute to the peak du- 6.36 and 6.38.
ration fear that we expect to be hit in
The US dollar is gaining strength amid 2Q,” said DBS Group strategists Eugene “The IMF affirmed expectations for
expectation that the US Federal Reserve Leow and Philip Wee in a Monday note. China to miss its official growth target
will accelerate its interest hike to tame of 5.5% this year. Its latest growth fore-
inflation. With the International Monetary Fund cast for China was 4.4%, lower than the
(IMF) readjusting its global growth pro- 4.8% predicted by our economists,” said
The US Dollar Index — which meas- jection to below 4%, most emerging Asian the strategists.
ures the value of the US dollar against currencies depreciated and remain under
a basket of currencies — surged above pressure, said the research firm, which
100 for the first time in two years in an- anticipates the ringgit to drop to RM4.30
ticipation that the US Federal Reserve against the greenback by the end of third
will accelerate its interest rate hikes to quarter.
tame inflation.
“In emerging Asia, the Chinese Yuan
The US Dollar Index was at 100.32 as depreciated 0.4% to 6.3935 per US dol-
the greenback hit a 20-year high against
the Japanese yen and tested a two-year
peak on the euro.

THURSDAY APRIL 21, 2022 3 THEEDGE CEO MORNING BRIEF

HOME

Caely’s bank accounts frozen
on MACC’s orders

KUALA LUMPUR (April 20): Lingerie BY SULHI KHALID “We are answerable to our share-
maker Caely Holdings Bhd has clarified theedgemarkets.com holders for how the business is run.The
that the freeze order on all the operation- board of directors is monitoring the sit-
al bank accounts of the company and its “All the accounts were frozen, the uation closely too and is working with
subsidiaries was issued by the Malaysian company was unable to make any pay- the management on unfreezing the bank
Anti-Corruption Commission (MACC). ment to suppliers, salary, banks or any accounts,” he added.
party. The company is currently ex-
In a reply to a query from Bursa Ma- posed to potential lawsuits and claims Lim also said Caely is in contact with
laysia on Wednesday (April 20), Caely for breach of contracts because unable MACC and will extend whatever cooper-
said the freezing order by the anti-graft to make payment and fulfil its commit- ation or assistance needed for the matter
agency was never served on the company, ment.” to be resolved.
but that it had merely received the notice
from one of its banks, CIMB Bank, on It is seeking legal advice on the cours- “The management is at this juncture
April 13 that the company’s accounts es of action that can be taken. still assessing the impact from the or-
had been frozen. der to freeze the bank accounts. “We are
Caely announced on Monday that an working on the next steps, which also
“The company does not have any authority had issued a freeze order on its include measures to ensure that daily
knowledge as the freezing order (by accounts on Monday but did not identify operations are not disrupted. The live-
MACC) was never served on the com- who the authority was at the time. It also lihoods of Caely employees, as well as
pany. However, all the company and its said it was unaware of any wrongdoing. our suppliers and vendors are at stake.”
subsidiary’s bank accounts maintained
with the banks had been frozen,” it said. Unfreezing bank accounts the top The group will make the necessary
priority announcements to Bursa Malaysia as and
It added that it does not have any In a statement on Wednesday evening, when there are further developments.
knowledge on the length of the freez- Caely said it understands the concerns
ing order. of stakeholders and is working as speed- Earlier this month, on April 7, Caely
ily as it can to resolve any issue arising announced thatVirdos Lima Consultancy
“The company has communicated from the freeze. (M) Sdn Bhd had been appointed as fo-
with the banks to allow the company to rensic auditor to carry out an independ-
use the monies and requested for rea- “The unfreezing or partial unfreezing ent forensic audit on allegations of suspi-
son for freezing the accounts. We have of the bank accounts are our top prior- cious and irregular transactions at Caely
requested to unfreeze the accounts but ity. We are exploring all avenues to re- after one of its independent non-exec-
solve this issue, as we need to ensure that utive directors received an anonymous
we have yet to receive any response business operations can sustain,” said its package containing documents that raised
from the banks. Also, enquir- executive director and chief executive concerns about several suspicious trans-
ies with MACC are still officer Lim Chee Pang. actions involving Caely.The investigation
in progress,” it said. is expected to be completed by May 31.
“We take note of the order to freeze
all the group’s bank accounts and wish Caely’s Annual Report 2021 showed
to reassure all stakeholders that meas- that as of July 30, 2021, its substantial
ures are being explored to ensure busi- shareholders comprised Penang-based
businessman Datuk Seri Goh Choon
ness continuity and Kim with a 21.69% stake; Caely execu-
sustainability. tive director Datin Fong NyokYoon and
spouse Datuk Chuah Chin Lai, who was
the former managing director of Caely,
jointly owned 13.07%; while its execu-
tive chairman and Public Gold Group’s
founder DatukWira Louis Ng Chun Hau
held a 25.26% stake.

Caely’s shares dipped 2 sen or 4.65%
to close at 41 sen on Wednesday, giving

the group a market capitalisation of
RM107.17 million.

THURSDAY APRIL 21, 2022 4 THEEDGE CEO MORNING BRIEF

HOME

Compound may end Serba Dinamik officials’
nightmare but not that of minorities

(April 21):The recent RM16 million com- BY ADAM AZIZ to later find the company overstated its rev-
pound issued by the Securities Commission theedgemarkets.com enue by RM530 million across two financial
to Serba Dinamik Holdings Bhd and four of years. It was delisted four years later in 2011.
its top officials does not mark the end of the last year that the request is “subject to a 25%
saga for stakeholders affected by the com- quorum” of the sukuk’s aggregate value. “Serba’s case is different,” the consultant
pany’s audit issue. said. “Anyone can come in to undertake any
The biggest sukuk holders listed on Bloomb- review but they will still have to engage with
First of all, Serba Dinamik shares have erg include City National Rochdale LLC the same parties [who are involved in the
remained suspended from trading. Further- (6.02%), Emirates NBD Asset Management compound],” he said, pointing to the ongo-
more, there has been little update in the four Ltd (3.74%), Lemanik Asset Management SA ing legal actions by Serba Dinamik against
months since it defaulted on its US$222.22 (3.16%) and Azimut Investments SA (2.67%). KPMG and the special independent review
million sukuk, with three weeks to go before E&Y Consulting Sdn Bhd.
the maturity date on May 9. It is worth noting that Serba Dinamik’s
short-term borrowings amounted to RM1.45 Notably, Serba Dinamik has not made
With its Special Independent Review (SIR) billion plus long-term debts of RM2.27 bil- any announcement on any changes in the
factual finding update (FFU) yet to be re- lion as at end-2021. management.
leased, and after external auditor Nexia SSY
PLT issued a disclaimer of opinion in Janu- A fixed income analyst, when contact- So far, the SC has also not given an of-
ary, Serba Dinamik’s shareholders have no ed, said the non-action is “quite unusual” ficial indication of any additional action
way to assess the company’s balance sheet, but opined that the reluctance from bond- against the compounded individuals, such
which could undergo a sizeable restatement. holders could be due to the lack of quality as barring them from their board and man-
What is before the minority shareholders now information on Serba Dinamik’s financials. agement roles in the company.
is not any better compared with 11 months
ago when the former auditor KPMG flagged While details are scarce, Serba’s Dec 15 “There is not much that minority share-
audit issues on its financial accounts. filing noted that sukuk default “will give rise holders can do,” said the consultant in ref-
to several other potential events of default erence to the fragmented minority share-
Further trading suspension of the indebtedness under the company by holding in the company. “But the banks can
On April 14, Bursa Malaysia Securities Bhd virtue of the cross-default provision under take action [if Serba defaults on its loans].”
(Bursa Securities) filed contempt of court the respective financing agreements”.
proceedings against Serba Dinamik for the Serba Dinamik’s largest shareholders in-
latter’s refusal to reveal the FFU. The default also suggests that banks clude group managing director and group
would have frozen its credit line. CEO Datuk Mohd Abdul Karim Abdullah
This suggests that the trading suspension (21.23%), chairman Datuk Abdul Kadier
would not be lifted soon, should Serba choose Concurrently, four of Serba Dinamik Sahib (16.33%), the Sarawak State Finan-
to ignore the court order.The stock, which has subsidiaries have applied for judicial man- cial Secretary (4.3%) and Safari Asia Ltd
plunged by 78%, has been suspended from agement earlier in February “to regularise (2.91%), Bloomberg data showed.
trading for six months since Oct 22, 2021. the financial condition of the group”, but
has since withdrawn the application upon The state of the company
“At that time, [the suspension] was en- getting pushback from creditors. To recap, the compound by SC is linked to
forced to compel Serba Dinamik to release Serba’s revenue of RM6.01 billion for the
the FFU. Lifting the suspension now would It considered opting for a scheme of ar- 12-month period ended Dec 31, 2021.
be different from the earlier rationale,” a rangement instead — as seen in Sapura En-
senior consultant told The Edge. ergy Bhd — whereby management retains KPMG, which first raised concerns over
control of the company while negotiating a the Serba Dinamik’s financials in 2021,
“But by now Bursa should think hard- restructuring plan with creditors. flagged transaction, material and receiva-
er about lifting it and let things take its ble balances and transactions worth a com-
course, because there is almost a stalemate “But the problem is getting support from bined RM4.02 billion, as well as dealings
[in court]...minorities are in a difficult posi- at least 50% of the creditors,” a corporate with unidentified parties worth a combined
tion.You can’t exit, you don’t know the real lawyer told The Edge. “For that to happen, US$125 million (RM535 million).
damage,” the consultant said. the management must be trusted and the
business needs to remain intact.” The company had two private placements
“Perhaps Bursa wants to exhaust all le- in January 2018 and February 2021, which
gal avenues before lifting the suspension,” The group is currently under Practice Note raised RM935.81 million in total.
he opined. 17 (PN17) status,with another eight months to
come up with a regularisation plan by January In the six-month period ended Dec 31,
Creditors keep silent 2023 or risk being delisted.It has yet to appoint 2021 (6MFY22), Serba Dinamik booked a
Following the December 2021 default on its an adviser to firm up a regularisation plan. net loss of RM332.44 million on revenue of
US dollar sukuk, holders of its other RM100 RM976.49 million.
million commercial paper — also due in May No official picture on financials
2022 — declared an event of cross-default, The disclaimer of opinion by Nexia in Jan- It had retained earnings of RM724.82
Malaysian Rating Corp Bhd said on April 4. uary 2022 is an indicator that concerns over million at end-December, down RM332.44
the discrepancies in Serba Dinamik’s books million from RM1.06 billion at end-June.
However there is no announcement on the are not baseless.
sukuk holders exercising their right to seek pay- Current trade payables stood at
ment of all outstanding principal and coupons. “A full review (of the company’s ac- RM778.29 million, up RM284.09 million
Serba Dinamik said in its filing dated Dec 15 counts) is needed for the auditor to sign off from RM494.19 million at end-June.
[the account],” a fund manager pointed out.
In short, the minority shareholders have
In the case ofTransmile Group Bhd, it was yet to get off from the nerve-racking roll-
the board that ordered a special audit in 2007 er-coaster ride.

THURSDAY APRIL 21, 2022 5 THEEDGE CEO MORNING BRIEF

THE MARTELL DAME-JEANNE COLLECTION:
AN EXCEPTIONAL VINTAGE OF
OUTSTANDING RARITY

Martell, the oldest of the Great Houses in itself, providing a unique opportunity for a select Exceptionally rare
of Cognac, has stood as the standard few to live vicariously through the cellar master just The new Dame-Jeanne Collection is enriched with
bearer for extremely rare, complex as when he first experienced these prized vintages. four new offerings carefully selected by current
and exceptional spirits since it was cellar master, Christophe Valtaud. Crafted for true
first founded in 1715. Now as part of Artisanal masterpieces in their own right, these connoisseurs, these precious eaux-de-vie have been
its long-storied history, Maison Martell is showcasing 11-litre glass demijohns were exclusively crafted to exclusively reserved for Maison Martell’s most prestig-
its precious legacy in the form of the extraordinary hold the collection’s very old cognacs. By protecting ious blends. The Dame-Jeanne Collection, however,
Dame-Jeanne Collection. the eaux-de-vie from contact with the air, these stands head and shoulders apart as it showcases
glass flasks halt the ageing process, preserving the authentic expression of its terroirs along with
Crafted for true aficionados, the highly limited their exceptional quality for many years to come. their own distinctive, individual aromatic profile.
collection serves as the next illustrious chapter for
Martell, and it is undoubtedly a spirit meant for only The release of the ultra-rare Dame-Jeanne in-
a select few. Featuring an exceptional reserve of cludes vintages from 1952, 1959, 1968 and 1972,
vintage eaux-de-vie and presented in finely crafted all of which contain eaux-de-vie so precious, that
Dame-Jeannes, the collection is a physical embodi- they bring true meaning to the term liquid gold.
ment of the rich heritage passed down throughout Each vintage boasts its own unique attributes and
eight generations of cellar masters. flavour profiles. However, the shared similarities
include a distinctive strong character along with
In creating the Dame-Jeanne Collection, the taste profiles that exude both finesse and elegance
House painstakingly selected only the rarest and accentuated by wonderful aromatic richness and
most precious eaux-de-vie from its extensive library. aromatic complexity.
These prized vintage eaux-de-vie have spent dec-
ades maturing in fine-grained oak barrels housed Of particular interest to the Malaysian market
within the Martell cellars and each has been aged is the 1968 Grand Champagne vintage, which is
to perfection in order to protect the delicacy of quite literally the last of its kind. Offering infinite
their aromas. sweetness, delicacy, and freshness, the 1968 vin-
tage boasts a perfectly balanced eaux-de-vie is
The most significant aspect in making the Mar- characterised by its luminous golden copper hue.
tell Dame-Jeanne Collection lies in the expertise On the palate, this remarkable spirit offers notes
of the cellar master. After determining that the of herbal tea, subtle mint, delicate wood, citrus
vintage eaux-de-vie have reached their aromatic fruit, and fleshy fruit.
maturity, these exquisite spirits are transferred
to Dame-Jeannes to ensure their quality remains For true cognac lovers
intact over time. More than a precious liquid in a In revisiting the traditional Dame-Jeanne, Maison
beautiful bottle, the Dame-Jeanne is an experience Martell harnessed the expertise of three French ar-
tisans. The creative hands of the carpenter sculpted
the wooden mould, while a glassblower breathed
life into the monumental flask.

Last but not least, a basket maker was engaged
for the wickerwork in which to encase the Dame-
Jeanne. Each piece is completely unique, made to
order in the workshops of the Fondation d’Entre-
prise Martell in Cognac, and delivered with a cer-
tificate signed by Christophe Valtaud, solidifying
its authenticity.

For collectors, the Dame-Jeanne stands as a true
pièce de résistance in the world of fine cognacs. Each
piece is not just unique in flavour and presentation,
but also epitomises the highest level of savoir-faire.

The Dame-Jeanne Collection is available on
special order, with prices available on request. For
Malaysian connoisseurs, a single 1968 Grand Cham-
pagne vintage has been reserved for the market.
For true cognac lovers and aficionados, it presents
the opportunity to own a highly coveted and collect-
able Dame-Jeanne that is likely the last of its kind.

For further details, contact Trisha at
(016) 428 4403.

THURSDAY APRIL 21, 2022 6 THEEDGE CEO MORNING BRIEF

HOME

HARIS HASSAN/THE EDGE

Petronas says to Navis picks
increase crude Rothschild
oil production for Malaysian
capacity at Iraq’s supermarket
Garraf oilfield sale, sources say

BY SYAFIQAH SALIM BY ELFFIE CHEW The Food Purveyor owns the Village
theedgemarkets.com Bloomberg Grocer and Ben’s Independent
Grocer supermarkets.
KUALA LUMPUR (April 20): Petroliam
Nasional Bhd (Petronas) said its upstream (April 20): Asian buyout firm Navis Cap- Discussions are ongoing and Navis
arm Petronas Carigali Iraq Holding B.V. ital Partners has selected Rothschild & could decide not to proceed with a trans-
(PCIHBV) will increase crude oil pro- Co to help with a potential sale of its pre- action, the people said. Representatives
duction capacity at Iraq’s Garraf oilfield mium supermarket chains in Malaysia, for Rothschild and Navis declined to
to 130,000 barrels per day from around which could be worth more RM1 billion, comment.
100,000 barrels per day currently by the according to people with knowledge of
third quarter of 2022 under the Malay- the matter. Online shopping accounted for just
sian national oil company’s plan to realise 2% of total grocery gross merchandise
its plateau production target of 230,000 The Kuala Lumpur-based private eq- value in Southeast Asia in the first half of
barrels per day in 2024. uity firm and its financial adviser are pre- 2021, according to a report by Google,
paring to start a sale process to gauge pro- Bain & Co and Temasek Holdings Pte’s
According to Petronas, PCIHBV, which spective investors’ interest in The Food e-Conomy SEA research project. That
is the operator of the Garraf oilfield, re- Purveyor Sdn Bhd, said the people. Other figure could grow to US$50 billion if
cently marked a significant development companies in the industry and private it reaches the 10% penetration seen in
in its operations as PCIHBV secured ap- equity firms have expressed interest, one markets such as the US and China, the
proval from the host authority to ramp up of the people said, asking not to be iden- report showed.
its production capacity there. tified as the process is private.
A deal would follow Singapore-based
“The Garraf oilfield, the largest crude Navis asked last year for proposals ride-hailing and delivery giant Grab
oil producer for Petronas’ upstream busi- from banks for a sale of the compa- Holdings Ltd’s acquisition of a majori-
ness, has been producing around 100,000 ny, which owns the Village Grocer and ty stake in Malaysian supermarket chain
barrels per day. Ben’s Independent Grocer supermarkets, Jaya Grocer Holdings Sdn Bhd. The
Bloomberg News reported. The buyout transaction was completed in January.
“To support this progress, PCIHBV has firm bought a majority stake inThe Food
brought into service a 30 kbopd (thousand Purveyor, then known as Village Grocer The Food Purveyor operates super-
barrels of oil per day) leased oil train (LOT) Holdings Sdn Bhd, in 2014, according market brands including Pasaraya OTK
facility that will increase the field’s produc- to the company’s website. and manages about 31 stores in Malaysia,
tion capacity to 130,000 barrels per day. its website shows.

“With safety as a top priority, PCIHBV Buyout firm people, who asked not to be identified as
has commenced the start-up activities at KV Asia weighs the process is private. A deal could fetch
the LOT facility, and is now in the stabili- about US$350 million (about RM1.5 bil-
sation phase,” Petronas said in a Facebook Malaysian lion) for the group, they said.
post on Sunday (April 17, 2022). education unit
sale, sources say Deliberations are ongoing, and KV
Petronas said the achievement would Asia could decide not to proceed with a
not have been possible without the strong BY ELFFIE CHEW sale, the people said. A representative for
collaboration among its partners, namely Bloomberg KV Asia declined to comment.
Japan Petroleum Exploration Co Ltd and
North Oil Co, as well as with the contin- (April 20): KV Asia Capital, the South- Asia Pacific Education owns Asia Pacific
ued support from the Iraqi Ministry of Oil east Asia-focused private equity firm, is University ofTechnology & Innovation and
and Thi Qar Oil Co. considering selling its Malaysian post-sec- Asia Pacific Institute of InformationTech-
ondary education group, according to nology.They operate out of two campuses
“The company (Petronas) is set to drive people with knowledge of the matter. in Kuala Lumpur and currently have over
efforts to increase Garraf oilfield’s produc- 10,000 students, according to KV Asia’s
tion to another level by [the third quarter The buyout firm is working with a fi- website.The private equity firm and com-
of] 2022, paving the way for it to realise nancial adviser on the potential sale of pany management acquired the education
its plateau production target of 230 kbopd Asia Pacific Education Holdings, said the group from Malaysian state-backed buyout
in 2024,” Petronas said. firm Ekuiti Nasional Bhd in 2018.

According to Petronas’ website, PCIH- KV Asia is headquartered in Singapore
BV has been operating in Iraq since 2010 and has offices in Malaysia and Indone-
with ventures in three oilfields comprising sia. The firm has investments in sectors
the Garraf, Halfaya and Badra oilfields. including consumer, health care, manu-
facturing and services.
As the operator of the Garraf oilfield, Pe-
tronas said it successfully delivered its first
oil from the Garraf oilfield on Aug 31, 2013.

thursday april 21, 2022 7 TheEdge CEO morning brief

home

Axiata confirms edotco’s planned
RM3.42b Philippines telecommunication

tower buy from PLDT units

by Tan Siew Mung
theedgemarkets.com

KUALA LUMPUR (April 20): Axia- 022 MALAYSIA APRIL 4, 2022 corporate 23 Philippines presents a unique high-growth
ta Group Bhd confirmed on Wednesday opportunity in a nascent tower market with
(April 20) that its 63%-owned subsidiary NEWSBREAK strong governmental support and signifi-
edotco Group Sdn Bhd’s 100%-owned cant infrastructure needs.
unit ISOC edotco Towers Inc is buying edotco eyeing PLDT’s tower assets in the Philippines
2,973 telecommunication towers and re- “With a more balanced portfolio of
lated assets in the Philippines from PLDT ABY JOSE BARROCK Bali, Sulawesi and Kalimantan, and eastern Axiata’s stock was suspended last Friday with a 20.35% stake,Philippine Telecommu- towers across the emerging and frontier
Group units Smart Communications Inc xiata Group Bhd’s 63%-owned sub- Indonesia. PT XL Axiata is a 61.48%-owned pending an announcement on its mergerwith nications Investment Corp (12.05%) and JG markets, the growth profile of edotco
(SMART) and Digitel Mobile Philippines sidiary edotco Group Sdn Bhd is un- subsidiary ofAxiata,edotco’s parent company. DiGi.Com Bhd.Axiata is a large companywith Summit Holdings Inc (11.27%), the latter of is expected to be more sustainable and
Inc (DMPI) for 42 billion Philippine pesos derstood to be in talks with PLDT a market capitalisation of RM34.69 billion. which is controlled by the family of the late predictable, going forward. Post transac-
(RM3.42 billion) in a move which will help Inc of the Philippines to acquire a With the acquisition from PLDT, edotco John L Gokongwei Jr,a renowned business- tion, edotco will cement its position as
the buyer establish a platform to accelerate will have under its belt a portfolio of 50,000 Makati-based PLDT, which is the Phil- man.Hong Kong’s First Pacific Co Ltd holds the sixth largest (ITC) independent tower
organic and inorganic growth. owned and managed towers and a presence ippines’ largest telecom and digital servic- company globally and will be operating
portion of the latter’s telecommuni- in nine markets across Asia — in Malaysia, es provider by market value, had a market a 3.54% stake in PLDT. and managing a diversified portfolio of
According to Axiata’s Bursa Malaysia cation tower business,sources familiar with Myanmar,Bangladesh,Cambodia,Sri Lanka, capitalisation of US$7.6 billion at the time News reports from the Philippines state approximately 54,000 towers across Ma-
filings, Axiata’s share trade was halted be- the matter tell The Edge. Pakistan,the Philippines,Laos and Indonesia. of writing. that PLDT is divesting its tower business laysia, Indonesia, the Philippines, Bang-
tween 9am and 10am on Wednesday in While the details are scarce,sources saythe An IPO of edotco has been talked about According to Bloomberg, PLDT’s share- to trim its gross debt,which was pegged at ladesh, Pakistan, Cambodia, Myanmar,
conjunction with the telecommunication acquisition could be a substantial one with since January 2018,but has yet to take off. holders include NTT DoCoMo Inc of Japan US$5 billion at end-2021. Laos and Sri Lanka,” Axiata said.
towers purchase announcement. E
Axiata’s announcement on Wednes-
“Both SMART and DMPI are part edotco eyeing about 3,000 of PLDT’s 6,000 day (April 20, 2022) confirmed a report
of PLDT Group, Philippines’ largest ful- telecom towers that are up for sale. in The Edge Malaysia weekly April 4-10,
ly integrated telco company. Through its It is understood that edotco may be utilis- 2022 edition that edotco Group via ISOC
principal business group from fixed line to ing its 51%-owned unit ISOC edotcoTowers Inc edotco had been planning an acquisition of
wireless, PLDT Group offers a wide range — a joint venture with the Philippines-based a portion of PLDT’s telecommunication
of telecommunications and digital servic- ISOC Infrastructure Inc — for the acquisition tower business.
es across the Philippines’ most extensive of PLDT’s telecom towers.ISOC edotcoTowers
fiber optic backbone, and fixed line and was set up in September 2019. Quoting sources familiar with the mat-
cellular networks. The Edge understands that a number of ter, The Edge Malaysia weekly reported
edotco’s top brass are in the Philippines at then that while the details were scarce,
“PLDT is listed on the Philippine Stock the time of writing,but how soon a deal may the acquisition could be a substantial
Exchange and its American Depositary be inked remains to be seen. one with edotco eyeing about 3,000 of
Shares are listed on the New York Stock A source familiar with the matter says PLDT’s 6,000 telecommunication tow-
Exchange,” Axiata said. the deal is “imminent”, adding that, “From ers up for sale.
FLASHBACK:what I gather,it (the acquisition) could be
Axiata said ISOC edotco on Tuesday concluded soon.” Axiata’s share price rose onWednesday
(April 19, 2022) entered into a sale and There has also been talk of PLDT leasing (April 20, 2022) as trading resumed fol-
purchase agreement with SMART and back its towers from ISOC edotco Towers af- lowing Axiata’s confirmation on the pro-
DMPI for the acquisition of the telecom- ter the sale, but this remains conjecture at posed transaction.
munication assets. The Edge Malaysia Apr 4, 2022presstime.
According to news reports in the Phil- At 10.44am, Axiata’s share price rose
The transaction will be funded through ippines in mid-March,PLDT was disposing six sen or 1.67% to RM3.66, which values
a combination of internally generated funds of 50% of its tower assets — or 6,000 out of the group at about RM33.6 billion based
and external funding, according to Axiata. a total of 12,000 towers — valued at some on the company’s 9.18 billion outstand-
PHP50 billion (US$966 million or RM4.06 ing shares.
“Barring any unforeseen circumstances billion).PLDT president Alfredo Panlilio re-
and subject to all approvals being obtained, portedly said that the Philippine company The stock was traded at between
the proposed acquisition of [the] PLDT had narrowed down the 19 initial bids it had RM3.61 and RM3.69 so far onWednesday.
tower assets is expected to be completed received to six, and that the bidders were
by Dec 31, 2022,” Axiata said. tower players that were “strong well-funded
“The committed [750] BTS, in addi-entities”fromacrosstheglobe.
Axiata said that concurrent with the PLDT was looking to choose two compa-
execution of the sale and purchase agree- nies — each acquiring 3,000 towers — with
ment, SMART also entered into a master the award being made in the second quarter
service agreement with ISOC edotco on of the year,said the news reports.UBS AG is
the leaseback of the telecommunication as- tion to the existing 485 BTS orders thatunderstoodtobeadvisingPLDTonthesale.
sets which are being sold to ISOC edotco. Final bids for the sale of the 6,000 telecom
towers is said to have been received by PLDT
In addition to the proposed leaseback on March 1 this year.
transaction, ISOC edotco will build 750 ISOC edotco has already secured fromIfedotcoviaitsunitISOCedotcoTowersis
build-to-suit (BTS) sites for leasing to one of the preferred bidders,Axiata may have
SMART in the future. to fork out around RM2 billion for the acqui-
sition.Axiata is a 36.75%-owned unit of sov-
ereign wealth fund Khazanah Nasional Bhd.
other MNOs (mobile network operators),ApartfromAxiata,edotco’sshareholders
are INCJ Ltd (owned by Japan Investment
Corp) with a 21.14% stake; Mount Bintang
Ventures Sdn Bhd,which is a wholly-owned
will further strengthen edotco’s positionunitofKhazanahNasional,with10.57%equi-
ty interest; and Kumpulan Wang Persaraan
(Diperbadankan) or KWAPwith the remainder
5.29% stake,company searches show.
With such strong shareholders,edotco is
to benefit organically from the growingunlikelytohaveanydifficultywithfunding.
Meanwhile, the Philippines-based ISOC
Infrastructure is the vehicle of business-
man Michael C Cosiquien, who is also the
BTS demand and digital infrastructureco-founderofMegawideConstructionCorp,
a US$200 million company publicly traded
on the Philippine Stock Exchange.Cosiquien
was listed by Forbes as one of the Philippines’
top 50 richest individuals in 2020 with a net
needs in the country, driven by the in-worthofUS$175million.
For its financial year ended December
2020, edotco posted an after-tax profit of
RM175.23 million on the back of RM1.88 bil-
lion in revenue.As at end-2020,the telecom
creasing capacity and coverage require-towercompanyhadtotalassetsofRM6.51
billion,total liabilities of RM2.73 billion and
retained earnings of RM482.11 million.
In earlyMarch,edotco acquired about 1,000
ments of [MNOs].towersfromIndonesia’sPTXLAxiataTbkfor
RM219 million,giving it a presence across all
major Indonesian islands of Java, Sumatra,
“Additionally, the enlarged platform
will also enable ISOC edotco to be well
placed for future inorganic growth oppor-
tunities in the Philippines, given its scale
and operational track record. Following the
transaction [to buy the telecommunication
assets], it is anticipated that more tower
opportunities would come to market as ex-
isting MNOs continue to move towards an
asset-light model,” Axiata said.
Besides helping ISOC edotco establish
a platform to accelerate organic and in-
organic growth, Axiata said the proposed
acquisition of the Philippines telecommuni-
cation assets will give ISOC edotco, among
others, exposure to a high-growth market.
“The transaction increases edotco’s ex-
posure to the stable, fast-growing emerg-
ing markets, while diversifying its portfolio
from the frontier markets. In particular, the

thursday april 21, 2022 8 TheEdge CEO morning brief

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Ex-1MDB CFO:
KPMG ‘adamant’ on meeting Najib

before signing off on 2013 audit

KUALA LUMPUR (April 20): KPMG, the by Timothy Achariam & Tarani Palani Wan Aizuddin then asked why he had
auditor for 1Malaysia Development Bhd’s theedgemarkets.com contacted Jho Low and not Najib’s prin-
(1MDB) 2013 accounts, was “adamant” cipal private secretary Datuk Azlin Alias
that it should meet former prime minister What’s the purpose?They wanted to check about the meeting with the prime minister.
Datuk Seri Najib Razak before signing off with the prime minister and they said if
on its audit of 1MDB’s financial statements the prime minister says yes, they will sign In his witness statement, Azmi said he
for that year, former 1MDB chief financial off on the audit,” he said. joined 1MDB as CFO on June 1, 2012
officer (CFO) AzmiTahir said. and that he had been contacted by Azlin
Upon receiving this information, Azmi for the job.
He was testifying onWednesday (April said he had briefed Malaysian financier
20) in the 1MDB-Tanore trial that the Low Taek Jho, better known as Jho Low, He maintained he had heard of Jho Low
meeting on Dec 15, 2013 at Najib’s Lang- about KPMG’s request, which Azmi said as Najib’s adviser through Azlin and that
gak Duta residence here was because was like an “ultimatum”. he subsequently met Jho Low at his office
KPMG had told him that the audit firm at KLCC as arranged by Azlin prior to
would sign off on the 2013 accounts after Wan Aizuddin: [They said] if the PM him taking on the CFO position in 2012.
it met with Najib. says yes, they will sign off?
Wan Aizuddin: You got the very best
During that time, Azmi said, KPMG Azmi: Yes. I conveyed this to Jho Low. link to the prime minister through his prin-
had refused to sign off on its audit of the He (Low) also asked after the meeting cipal private secretary.
strategic development company because what [will happen]? I was pressured by
it was dissatisfied with the inadequate ex- Jho Low, ‘Sure ah? Sure ah, (they will sign Azlin: Some things yes, but mostly Jho
planations and documents provided in re- off) after the meeting’. Low was playing major roles in 1MDB… I
lation to 1MDB’s huge overseas invest- updated Jho Low because he was handling
ment of US$2.3 billion in an unknown Wan Aizuddin: Upon the request (by the audit… I could have [gone to Azlin]
fund, Bridge Global SPC, that was made KPMG) the first person you contacted but I didn’t.
through Brazen Sky Ltd — a special pur- was Jho Low?
pose vehicle of 1MDB. It was also previously testified by Hazem
Azmi: Yes, just to update him... Gener- that former BSI Bank Singapore managing
Frustrated at the lack of progress, ally, problems or issues especially regarding director Yak Yew Chee, who was present
KPMG had sought a meeting with the the prime minister, [we didn’t deal with at Najib’s house, then joined the meeting
shareholder of 1MDB — in this instance, the] Prime Minister’s Office because [we after the initial discussions between Najib
the Ministry of Finance Inc, which was thought Jho Low was the representative and the 1MDB officers.
represented by Najib as the then prime of the PM].
minister and finance minister. However, continues on Page 9
the meeting was not minuted as it was The said meeting with KPMG at Na-
supposed to be informal. jib’s residence was attended by the audit Shahrin Yahya/The Edge
firm’s managing partner Datuk Johan Id-
Under cross-examination from Najib’s ris. On the 1MDB side, Azmi along with
lawyer Wan Aizuddin Wan Mohammed, former 1MDB CEO Mohd Hazem Ab-
Azmi said he was “surprised” that KPMG dul Rahman and then 1MDB chairman
had requested the meeting with Najib as he Tan Sri Lodin Wok Kamaruddin were
and the management of 1MDB had given in attendance together with Jho Low
the auditor whatever information that was and Najib.
within its control.
Azmi: We tried as much
“We tried as much as possible to give as possible to give KPMG
KPMG information and address issues, it information and address
came to a point where they (KPMG) said issues, it came to a point
that they wanted to meet the sharehold- where they (KPMG) said that
er if not they would not sign off. Bottom they wanted to meet the
line was that they wouldn’t sign off [on the shareholder if not they would
2013 accounts] if they didn’t meet [with not sign off. Bottom line was
Najib],” he said. that they wouldn’t sign off
[on the 2013 accounts] if they
“They were adamant to meet the prime didn’t meet [with Najib].
minister,” he added.

He said they were still trying to get in-
formation for KPMG about 1MDB when
KPMG partner Ahmad Nasri Abdul Wa-
hab had requested a meeting with Najib.

“I was surprised (that they requested
the meeting), it was along the lines of…

THURSDAY APRIL 21, 2022 9 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (April 20): Penang Jho Low might Geh was one of a number of 1MDB of-
fugitive businessman Low Taek Jho (Jho have understated ficers, along with the firm’s general counsel
Low) might have downplayed the extent Jasmine Loo, who fled the country ahead
of 1Malaysia Development Bhd’s (1MDB) 1MDB debt at of the 14th general election in 2018. Pu-
debts in an email and attachment to the RM5.8 bil in email trajaya has since taken forfeiture proceed-
company’s former chief financial officer to ex-CFO prior ings against them.
(CFO), Azmi Tahir, ahead of a scheduled to KPMG briefing
meeting with KPMG PLT over 1MDB’s Wan Aizuddin also asked Azmi whether
financial statements for the year ending BY HAFIZ YATIM, TIMOTHY ACHARIAM he had joined Jho Low on board Sheikh
March 2013, which the auditor had prob- & TARANI PALANI Mansour’s yacht The Topaz, which was
lems reconciling. headed to Brazil for the World Cup in
theedgemarkets.com 2014.
Cross-examined byWan AizuddinWan
Mohammed, lawyer of former prime min- Wan Aizuddin attempted to stress that Reports by Sarawak Report alleged that
ister Datuk Seri Najib Razak, Azmi agreed KPMG was not satisfied with the expla- Jho Low was on board the yacht with sev-
that he received an email from the busi- nation given by 1MDB in relation to the eral 1MDB officers.
nessman sometime on Nov 28, 2013. Brazen Sky deal even after a briefing with
Najib at his Jalan Duta residence, followed Azmi denied he was there or meeting
The 13th prosecution witness said the by requests for more documents. Jho Low in Brazil although he recalled
email, from [email protected], meeting him in Abu Dhabi. “I am not a
was Jho Low’s email and that the accom- Azmi agreed that generally KPMG did football fan,” he added.
panying attachment was for the purpose not accept the explanation given.
of his discussion with KPMG. Wan Aizuddin: Jho Low went on
“It was not enough and not acceptable,” board Sheikh Mansour’s yacht with some
Wan Aizuddin: In the email, Jho Low he said. 1MDB officers as alleged by Sarawak Re-
said 1MDB had government guaranteed Geh not in briefing with KPMG port, were you one of them?
debt of RM5.8 billion, whereas 1MDB had Azmi also testified in court that his former dep-
more debt, can you confirm this is not true? uty CFO,Terence Geh Choh Heng, who de- Azmi: I was not one of the officers who
spite dealing with 1MDB’s foreign funds was travelled [to Brazil]. I do not recall but you
Azmi: We have other bonds but I am not present in the company’s briefings with (the defence) are welcome to check on it.
not sure whether what Jho Low said in KPMG in November and December 2013.
the email was limited in scope. But for Sheikh Mansour Zayed Al Nahyan is
sure there are other debts, namely with He agreed withWan Aizuddin that Geh the owner of the Manchester City Foot-
the bonds raised for the Tanjung energy was placed in charge by Jho Low to oversee ball Club and chairman of International
purchase. funds of 1MDB that were placed overseas. Petroleum Investment Co (IPIC), which
is embroiled in a multibillion-dollar dis-
Wan Aizuddin: The point is RM5.8 Wan Aizuddin:You agree Geh was in pute with Malaysia over its transactions
billion [of] government guaranteed debt? charge of foreign funds, why was he not with 1MDB.
present in the meeting with KPMG?
Azmi: If you say it does not tally, yes, IPIC stood as guarantor for two of
as 1MDB has RM30- or RM40-odd bil- Azmi: I do not know why he was not 1MDB’s bond deals with Goldman Sachs.
lion debt, yes, that figure (RM5.8 billion) there [to meet with KPMG, despite being
does not highlight the amount. in charged mostly of foreign funds]. The fraud trial of Najib relating to
1MDB funds before Justice Datuk Col-
Besides the Islamic Medium Term lin Lawrence Sequerah continues on
Notes raised by 1MDB in 2009 for RM5 Thursday.
billion, 1MDB was also involved with
Goldman Sachs to raise US$6.5 billion Read also: Irwan Serigar’s application to
in bonds between 2012 and 2013. strike out 1MDB suit to be heard on July 1
Click here
Throughout the cross-examination,

FROM PAGE 8 The strategy outlined points for Najib, in- “Najib then asked Johan why he was
cluding expressing his confidence in the cre- suspicious over the underlying assets of the
Yak was sentenced to 18 weeks’ jail af- dentials of BSI Bank in Switzerland, which investments when BSI themselves had giv-
ter pleading guilty to four criminal charges was acting as the fund manager of 1MDB’s en a statement of the investments,” he said.
before a Singaporean court for forgery and purported US$2.3 billion investment.
failure to flag suspicious transactions in the “Najib told Johan that he wished to see
investigations related to 1MDB in 2016. Azmi previously testified that when he KPMG close the audit report for 1MDB’s
Yak, 57, was the relationship manager of arrived at Najib’s house, he had observed financial statements before Dec 31, 2013,”
Jho Low, and the banker in charge of the that Najib already had with him a copy of he added.
1MDB account for Swiss bank BSI. Jho Low’s email.
Najib has been charged with four counts
Yak was reportedly the first banker “The topics outlined in the email were of abuse of power to enrich himself with
to be convicted in the global corruption discussed between Najib and Idris,” he RM2.3 billion from 1MDB, and 21 counts
and money laundering probes surround- said, adding that Najib had stuck to the of money laundering for the same amount.
ing 1MDB. email directions. He faces up to 20 years’ imprisonment if
convicted.
It was previously reported that before Azmi then testified that in the meeting, Read also: ‘Deloitte the only auditor will-
the meeting with KPMG, Jho Low had sent Johan had asked Najib if he had known ing to take on 1MDB in 2013’ Click here
him an email which stated how Najib should about Bridge Global and Brazen Sky, to
act at the meeting, underlining that Najib which Najib replied that he knew about
“should not talk too much” at the meeting. the investments.

t h u r s d a y a p r i l 2 1 , 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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KUALA LUMPUR (April 20):The Cab- Cabinet as well as the French government, involv-
inet, which met on Wednesday and was unanimously ing the design and commitment of the
chaired by Prime Minister Datuk Seri Is- agrees to proceed country’s government.
mail SabriYaakob, has unanimously agreed with littoral
to proceed with the project to procure lit- combat ships “At the same time, other relevant agen-
toral combat ships (LCS). procurement — cies, including the Malaysian Anti-Corrup-
Hishammuddin tion Commission (MACC) are also urged
Senior Defence Minister Datuk Seri to expedite their respective roles to ensure
HishammuddinTun Hussein said the de- Bernama every process runs smoothly,” he said.
cision was taken after taking into consid-
eration two key factors, namely the LCS The LCS programme is part ofTMN’s He said the Cabinet had also set up a Spe-
assets are much needed by the Royal Ma- 15 to 5 development plan aimed at cial Governance Committee that is chaired
laysian Navy (RMN) as well as there being strengthening the country’s naval assets by the Ministry of Finance’s Secretary-Gen-
400 vendors involved in the project, with a and all six ships are based on the Gowind eral ofTreasury as well as the secretary-gen-
financial expenditure of over RM4 billion. design by French company, Naval Group eral of the Ministry of Defence to monitor
(formerly known as DCNS). the process of the LCS project for the next
“The LCS are definitely assets which six months and to report only the latest de-
are very much wanted and needed by the Hishammuddin said, besides that, there velopments to the Cabinet each month.
RMN not just for its modernisation un- were several other measures that the gov-
der the 15 to 5 transformation plan, but, ernment needed to take, including holding “I wish to stress that the decision to
more importantly, to raise the armada’s negotiations with banks, vendors and the continue with the LCS project does not
preparedness as well as improve efforts to original equipment manufacturer (OEM) mean those involved in wrongdoing in the
safeguard the country’s maritime interests. project previously would get away scot-
free.The MACC has remanded two CEOs
“I believe that the decision will further (chief executive officers) previously and
boost the morale and spirit of RMN person- the MACC too will be urged to expedite
nel to continue fighting for the country’s sov- its investigations.
ereignty,”he said in a statement onWednesday.
“Anyone found guilty will be brought
On the 400 vendors involved, Hisham- to justice,” he said.
muddin said over 100 of them were compa-
nies owned by Malaysians, with 90% linked Hishammuddin said further details on
to Malaysian Armed Forces veterans. how the project would proceed would be
announced from time to time.

KUALA LUMPUR (April 20): MN Hold- MN Holdings According to MN Holdings’ statement,
ings Bhd, which is slated for listing on Bur- IPO’s public as at March 9, the company had completed
sa Malaysia’s ACE Market on April 28, 375 contracts with a cumulative value of
said on Wednesday (April 20) that its ini- portion RM261 million in the underground util-
tial public offering’s (IPO) public portion oversubscribed ities and substation engineering services
was oversubscribed by 118.48 times after and solutions segments.
17,205 applications seeking 2.44 billion by 118 times
new shares, valued at RM512.81 million, The company said it had a total order
were received from the Malaysian pub- by Sulhi Khalid book of approximately RM172.2 million as
lic for 20.44 million new shares that were theedgemarkets.com at March 9, comprising RM135.4 million
made available for the Malaysian public from the underground utilities engineer-
subscription. “Equipped with a wide range of ma- ing services and solutions segment, and
chinery, we are capable to undertake a RM36.8 million from the substation en-
According to the underground utilities comprehensive range of services for un- gineering services and solutions segment.
and substation engineering services and derground utilities engineering projects
solutions provider’s prospectus, its IPO and provide integrated solutions with ex- “This order book will be recognised
involves a public issue of 81.75 million ecution capabilities for substation engi- progressively over the next one to four fi-
new shares and an offer for sale of 40.88 neering projects,” he said. nancial years based on the expected pro-
million existing shares in the company at gress of each project,” MN Holdings said.
21 sen each.
In its prospectus which was filed with
At 21 sen a share, MN Holdings will Bursa Malaysia on April 8, MN Holdings
have a market value of about RM85.84 said it primarily serves the power utility
million based on the company’s enlarged sector in Malaysia and is mainly responsi-
number of issued shares at 408.75 million ble for providing engineering services and
upon listing, according to the prospectus. solutions with necessary machinery, labour
and expertise for infrastructure utilities
In a statement on Wednesday, MN construction that the company undertakes.
Holdings’ managing director Loy Siong
Hay said the new share oversubscription “Our customers are primarily main contrac-
from the Malaysian public is a vote of con- tors for power projects,property developers and
fidence for the company’s business model industries that require our services and solu-
and growth strategies. tions to enable the supply of power to specific
locations and/or premises,” MN Holdings said.
“Going forward, we would strive to se-
cure more contracts and build our order M&A Securities Sdn Bhd is the advis-
book by leveraging on our competitive er, sponsor, underwriter and placement
strengths,” Loy said. agent for MN Holdings’ IPO, according
to the prospectus.

T H U R S D A Y A P R I L 2 1 , 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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OCR partners through a mixture of internal funds and ex- NEWS IN BRIEF
Magna Prima ternal borrowings.
Vertice sells remaining 40% stake in
to develop “With a planned GDV of RM1.5 billion, Kump Noir to exit fashion retail biz
RM1.5 bil integrated the proposed integrated e-commerce logis- KUALA LUMPUR (April 20): Vertice
tics hub is set to be OCR’s biggest venture Bhd is planning to exit the fashion retail
e-commerce hub into the CRE (commercial real estate) seg- business by disposing of its 40% equity
ment to date.The proposed development will stake in Kumpulan Voir Sdn Bhd for
theedgemarkets.com comprise a mixture of retail and commer- RM9 million, cash, to cut its losses in
cial spaces, including multi-storey integrated the company that has been in the red
KUALA LUMPUR (April 21): Property de- e-commerce spaces specifically targeted for since 2017 and now continues to face
velopers OCR Group Bhd and Magna Prima small and medium-sized enterprises (SMEs), challenges presented by the Covid-19
Bhd are joining hands to develop an integrat- as well as serviced apartments,” OCR said. pandemic. Vertice previously wholly
ed e-commerce logistics hub with a planned owned Kumpulan Noir, but sold 60%
gross development value of RM1.5 billion, The site’s strategic location is expected to of the company to Seow Khim Soon for
which the partners plan to launch in phases appeal to SMEs, according to OCR, as it is RM16.41 million in 2020. In a bourse
from 2023. located within the vicinity of commercial and filing on Wednesday (April 20), Vertice
light industrial areas in Shah Alam, with easy said it had inked a share sale agreement
In a statement, OCR said the joint ven- access to major highways and ports, as well with Distinct Seasons Sdn Bhd to sell
ture will be undertaken with Magna Prima’s as important amenities and facilities. the remaining 40% stake. The disposal
70%-owned unit Magna Ecocity Sdn Bhd, is expected to result in a loss of RM8.4
who owns a 20-acre leasehold plot in Section OCR managing director Billy Ong said million, compared to the net book value
15, Shah Alam, Selangor. the development is the group’s maiden inte- of Vertice’s investment in Kumpulan Voir
grated e-commerce development, which is a of RM17.4 million as at Dec 31, 2021.
Under the agreement, OCR’s whol- significant milestone for OCR and positions Vertice intends to funnel RM8.9 million
ly-owned OCR Avenue Sdn Bhd will be the it to benefit from the secular strong growth of from the disposal proceeds to fund
project developer.The proposed joint venture the e-commerce industry and CRE segment. its working capital within the next 12
will involve a profit-sharing scheme that will months. — by Seah Eu Hen
require OCR Avenue to pay RM160 million “For OCR, this development is in line with
as minimum entitlement or 30% of the de- our sector diversification strategy, which cur- Sinmah Capital seeks to sell
velopment profit — whichever is higher — to rently mainly features residential properties. poultry ops to focus on property
Magna Ecocity, upon fulfilment of certain With the target launch of our RM750 million development
conditions. affordable housing project in Shah Alam by KUALA LUMPUR (April 20): Poultry
the second half of 2022, the proposed inte- and property development group
OCR plans to finance the proposed devel- grated e-commerce spaces will further cement Sinmah Capital Bhd is selling its poultry
opment, which is still in the planning stage, our foothold in the thriving city,” he added. business to FCH Holdings Sdn Bhd for
RM2.9 million to focus on property
OCR shares closed 1 sen or 8.33% higher development. It plans to use the disposal
at 13 sen onWednesday (April 20), giving it a proceeds to fund the development of
market capitalisation of RM106.25 million. the group’s existing Taman Gambir
Magna Prima settled unchanged at 44 sen,for Perdana mix project in Johor. SM
a market capitalisation of RM176.65 million. Broilers is involved in poultry contract
farming and trading of feeds, day-old
GFM scraps JV and of no effect, it said. chicks, medications and vaccines. The
plans with Amzass, The JV agreement was signed in Sep- proposed disposal is deemed to be a
cites unsatisfactory related party transaction that would
tember last year, pursuant to the heads of require the approval of shareholders of
due diligence agreement entered between the two compa- the company at a general meeting to be
nies for GFM to acquire up to 70% stake in convened, as FCH is owned by Sinmah
BY SEAH EU HEN Amzass, which has been authorised by the executive directors Datuk Fong Kiah
theedgemarkets.com Malaysian Highway Authority to upgrade Yeow and Fong Ngan Teng, its director
the existing facilities of the Bemban lay- of property development business
KUALA LUMPUR (April 20): Integrated bys, and to build a petrol station on both Datuk Fong Kok Yong, and Fong Choon
facilities management service provider GFM sides of the proposed rest and service areas. Kai, who is a shareholder of Sinmah.
Services Bhd has scrapped plans to collaborate The Bemban lay-bys are situated in Melaka, — theedgemarkets.com
with Amzass (M) Sdn Bhd to complete the between the rest and service areas of Ayer
upgrade of the northbound and southbound Keroh, Melaka and Pagoh, Johor.
Bemban lay-bys in Melaka — located along
the North-South Expressway — into rest and Under the deal, a JV company (JVco) was
service areas, as it is unsatisfied with the results supposed to be incorporated,with GFM hold-
of the due diligence review. ing 40% and Amzass taking 60%. GFM and
Amzass were also supposed to ink an options
In a bourse filingWednesday (April 20), agreement that would grant GFM the right to
GFM said it has notified Amzass of the un- take up an additional 30% stake in the JVco.
satisfactory due diligence and demanded
a refund of RM500,000. On receipt of the GFM had expected to fork out an esti-
refund, the JV agreement will become void mated capital expenditure of RM80 million
for the JV and start construction of the rest
and service areas and petrol stations, with
revenue contribution from 2023.

GFM shares closed unchanged at 20 sen
apiece on Wednesday, valuing the group at
RM115.1 million.

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TMWholesale, ship would allow both parties to gain imme- Kejuruteraan
Telin to diate submarine capacity in response to the Asastera partners
growing demand for high bandwidth services.
collaborate in local firm to
subsea cable “It also gives us more diverse connec- expand into
tions and alternative routes connecting telecoms infra
business Malaysia to the rest of the world, while
optimising our existing submarine capacity. by seah eu hen
Bernama theedgemarkets.com
“Additionally, it will enable us to begin
KUALA LUMPUR (April 20): Telekom exploring the most cost-effective approach KUALA LUMPUR (April 20): Elec-
Malaysia Bhd’s (TM) wholesale domes- for future submarine cable investment pro- trical and mechanical engineering
tic and international business arm, TM jects that will benefit both parties and this service provider Kejuruteraan Asas-
Wholesale, has inked a memorandum of region,” he said in a joint statement on tera Bhd (KAB) has teamed up with
understanding with Telin, a subsidiary of Wednesday. privately held MRH Empire Sdn
PT Telkom Indonesia, to jointly explore Bhd to venture into the telecommu-
opportunities in subsea cable business ar- Meanwhile,Telin chief executive officer nication infrastructure sector to grow
rangements. Budi Satria Dharma Purba said the com- its recurring income.
pany is thrilled to jointly explore oppor-
TM Wholesale executive vice-president tunities in buying, selling, upgrading, and In a filing with Bursa Malaysia on
Amar Huzaimi Md Deris said the partner- investing activities, especially with regard Wednesday (April 20), KAB said its
to subsea cables. wholly-owned subsidiary KAB Telco
Sdn Bhd (KABTEL) has entered into
“Telin’s participation in global connec- a term sheet with MRH to form a joint
tivity focuses on ensuring reliable connec- venture (JV) in respect of the identified
tivity in order to meet surging demand for projects and prospective projects. Un-
fast internet due to trends such as flexible der the JV, KABTEL will hold a 60%
working arrangements, video streaming, stake in the JV company and MRH
and gaming. the remaining 40%.

“We believe that this collaboration will MRH, which is 99.9% owned by
serve our stakeholders’ needs according- Mohamad Ezzul Na'im Mohd Roa-
ly,” he said. hizee and 0.1% by Mohd Rohaizee
Hashim, operates a network of mul-
Currently,TM has 30 submarine cable ti-operator telecoms towers and pro-
systems, owned and leased, spanning more vides facilities and services relating to
than 320,000 kilometres around the globe. maintenance of telecoms towers, owns
the telecoms structure and fibre for in
Telin, meanwhile, has 22 submarine ca- building coverage.
ble systems, owned and leased, with over
222,260 kilometres. MRH has obtained approvals to
survey and develop telecoms towers
KUALA LUMPUR (April 20): Integrated Vizione JV bags in up to 1,342 sites throughout Ma-
construction engineering group Vizione RM654 mil job laysia, which will provide MRH the
Holdings Bhd, in a joint venture with from Perkeso rights to build, own and operate tel-
Permata Rebana Sdn Bhd, has bagged an ecoms facilities at all the premises of
RM654 million project from Pertubuhan theedgemarkets.com one of the ministries.
Keselamatan Sosial (Perkeso) to build
Phase 1 of the latter’s national robotics and one roof for all Perkeso members. It has also inked a memorandum
cybernetics rehabilitation centre in Bandar He added that the latest contract will of understanding with a local estab-
Meru Raya, Perak. lished telecoms operator for joint
bring the group’s outstanding order book business participation and cooper-
In a bourse filing onWednesday (April to above the RM3 billion level. ation over digital connectivity and
20), Vizione said Permata Rebana & infrastructure development for the
Vizione Holdings JV Sdn Bhd (PRVH) “Overall, we see encouraging signs that 1,342 sites, KAB said in a separate
has accepted a letter of award from Perk- more jobs are being awarded in tandem statement.
eso for the proposed project, which com- with the economic recovery. Our tender
prises 11 blocks. They include a gallery team continues to work hard on secur- “We expect the development of
centre, neuro robotics, a cybernetics and ing new jobs to further enhance our order all the sites to be ready by 2025 and
physical rehabilitation centre, a vocational book, targeting projects in the infrastruc- upon the completion of all sites, the
rehabilitation centre, a treatment centre, ture, buildings, flood mitigation as well as expected gross development value will
rehabilitation wards, hostel, aquatic reha- renewable energy segments. be worth more than RM500 million,"
bilitation centre, an administration centre said KAB managing director Datuk
with rooms, a graduation hall, as well as “On the other hand, the project teams’ Lai Keng Onn.
commercial space. focal point is to execute our order book on
a timely basis, supported by our healthy bal-
The contract has a duration of 30 ance sheet,” he said in a separate statement.
months starting from May 2.
Vizione shares closed 0.5 sen or 5.26%
Vizione managing director Datuk Ng higher at 10 sen onWednesday, bringing it a
Aun Hooi said the robotics and cybernet- market capitalisation of RM194.53 million.
ics rehabilitation centre will be the first of
its kind in Malaysia and will serve as a full
rehabilitation treatment programme under

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Sunway’s unit SFPTech
sets up MTN taps Public
programme to Investment
raise up to RM3 bil
Bank to
by shazni ong scribed by Public Bank Bhd. underwrite ACE
theedgemarkets.com The proceeds from Tranche 1 MTNs
Market debut
KUALA LUMPUR (April 20): Diversified shall be utilised to finance and/or re-
conglomerate Sunway Bhd said one of its finance STSB for any advances which by seah eu hen
units has established a medium term note STSB has granted or will grant to its re- theedgemarkets.com
(MTN) programme of up to RM3 billion lated companies and subsidiary compa-
in nominal value. nies and/or to finance/reimburse capital KUALA LUMPUR (April 20): In-
expenditures and/or the working capital tegrated engineering and automa-
In a bourse filing, Sunway said the pro- requirements of Sunway Group,” it said. tion solutions provider, SFP Tech
gramme was set up by its indirect whol- Holdings Bhd has tapped Public
ly-owned Sunway Treasury Sdn Bhd Public Investment Bank Bhd is the ap- Investment Bank Bhd (PIVB) as
(STSB), and that it shall have a tenure of pointed principal adviser, lead arranger and its underwriter for its initial public
99 years from the date of the first MTN is- lead manager for the MTN programme. offering (IPO) on Bursa Malaysia’s
suance.The required information and rele- ACE Market.
vant documents have been lodged with the Sunway operates a diverse group of
Securities Commission Malaysia, it added. businesses, including real estate, construc- In a statement Wednesday (April
tion, education, healthcare, building ma- 20), SFP Tech said its IPO exercise
“STSB will issue the MTNs in one terials, trading and manufacturing. will involve the public issue of 207.44
or more tranches and its first tranche million shares which includes an offer
of up to RM500.0 million in nominal Sunway’s share price settled two sen or of sale of 43.44 million shares via pri-
value (Tranche 1 MTNs) will be sub- 1.1 sen lower at RM1.79 on Wednesday vate placement to selected investors,
(April 20), bringing the group a market 40 million shares via balloting to the
capitalisation of RM8.83 billion. Malaysian public, 24 million shares to
eligible directors and employees (pink
KUALA LUMPUR (April 20): Axis Real Axis REIT 1Q forms) and 100 million shares via pri-
Estate Investment Trust’s (AXREIT) net NPI up 17.2% vate placement to Ministry of Inter-
property income (NPI) in the first quarter to RM58.39 mil, nationalTrade and Industry (MITI)
ended March 31, 2022 (1QFY22) jumped declares DPU approved Bumiputera investors.
17.2% to RM58.39 million from RM49.82
million in the previous year, mainly due to of 2.42 sen SFP said PIVB will underwrite
positive rental reversion for FY21 from ten- a total of 64 million shares made
ancy renewals and contracted step-ups and by sulhi khalid available for the Malaysian public,
contributions from newly acquired properties. theedgemarkets.com the group’s eligible employees, and
other persons who have contributed
A first interim income distribution of said the REIT will continue to manage to the success of the group, pursu-
2.42 sen per unit will be paid on June 15, its portfolio actively and exercise prudent ant to the underwriting agreement.
said the company in a filing with Bursa capital management to create sustainable
Malaysia on Wednesday. dividend per unit payouts to unitholders. SFPTech, which is involved in the
provision of sheet metal fabrication,
The commercial property REIT — which “With our healthy gearing level of 29%, CNC (computer numerical control)
has offices, warehousing and manufactur- Axis-REIT will continue with its strategy machining and mechanical assem-
ing facilities in its portfolio — reported a to acquire high-quality accretive proper- bly services, besides the provision
16.02% increase in revenue to RM66.69 ties with strong recurring rental income, to of automation equipment solutions,
million from RM57.48 million a year prior. grow its top- and bottom-lines,” she said. expects to launch its prospectus by
the end of May.
On a quarterly basis (Q-o-Q), NPI In April,Axis-REIT proposed to acquire
rose 5.7% from RM54.28 million in the a logistics warehouse in PelabuhanTanjung Proceeds to be raised from the IPO
preceding 4QFY21, underpinned by high- Pelepas, Johor, for RM390 million. exercise would be mainly used for the
er contributions from newly acquired prop- group’s business expansion, which in-
erties and sale of recycled materials arising The proposed acquisition, which is its cludes building its third manufactur-
from the demolition work. Revenue grew largest acquisition to date, is expected to ing plant in Penang Science Park, and
5.95% from RM62.94 million in 4QFY21. be completed by mid 2022. buying new machinery and equip-
ment, said SFP Tech group manag-
During the past year, the group added Shares in Axis REIT closed one sen or ing director Keoh Beng Huat.
three properties to its portfolio, namely Xin 0.53% lower at RM1.87 onWednesday,giving
HwaWarehouse @ Pasir Gudang, Pasir Gu- it a market capitalization of RM3.06 billion. PIVB is also the principal advis-
dang LogisticsWarehouse 2 and Indahpura er, sponsor and placement agent for
Facility 4, which were completed in October the IPO.
2021 and March 2022, respectively.

Commenting on the result, Axis REIT
Managers chief executive Leong Kit May

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Johor to use database with other agencies such as the Over RM400,000
Singapore’s HDB local authorities, the Ministry of Finance, forfeited from
PR1MA Corporation Malaysia, theTown
as affordable and Country Planning Department (PL- Addy Kana’s wife,
homes benchmark ANMalaysia) and the banks. her companies

Bernama He said PKPJ will also undertake the role Bernama
of ensuring all development plans are imple-
JOHOR BARU (April 19): The Johor mented according to the schedule and time- KUALA LUMPUR (April 20): Mon-
State Housing Development Corpora- line so that the provision of affordable houses ey belonging to Alyaa Syuhaila Mo-
tion (PKPJ) will make the implementation can be provided and meet local demand. hamad Shariff, the wife of "Datuk Addy
of the Housing and Development Board Kana", amounting to RM353,723.81 and
(HDB) of Singapore development concept “InsyaAllah, [with] the state adminis- RM75,846.82 belonging to her company,
its benchmark in providing comprehensive tration that was formed with the strength Nine Nine International Sdn Bhd, alleged-
affordable housing development planning of PKPJ and coordination with other de- ly proceeds obtained from unlawful activi-
in every district in the state. partments, this intention and commitment ties, is now officially government property.
will be successfully realised,” he said on
Menteri Besar Datuk Onn Hafiz Ghazi his Facebook page onTuesday (April 19). High Court Judge Mohamed Zaini Ma-
said to do this, PKPJ will need to take zlan ordered the money to be forfeited to
drastic action by having a detailed and Onn Hafiz also said he had visited the the government after Malaysian Anti-Cor-
focused housing development planning HDB in Singapore, which had built about ruption Commission (MACC) deputy
1.2 million affordable homes since it was public prosecutor Nik Haslinie Hashim
established in 1960. as the applicant, informed the court that
Alyaa Syuhaila as the respondent agreed to
He added that the four-day working vis- hand over the property to the government.
it to Singapore which began last Saturday
was a move to strengthen ties between the “The respondent sent a representation
state and the republic. on Nov 26, 2021, and the representation
was received by the applicant (MACC).
reuters Respondent agrees the items in the appli-
cation (applicant) are forfeited.
KUALA LUMPUR (April 20): Six Ro- Six Rohingya
hingya refugees from Myanmar, including refugees dead, “I request for applicant's applica-
two children, have died after being hit by hundreds flee tion to forfeit Alyaa Syuhaila’s money
vehicles on a Malaysian highway as hun- amounting to RM353,723.81 which is in
dreds fled an immigration detention centre after riot at her five bank accounts and RM75,846.82
where a riot broke out early onWednesday, detention camp belonging to Nine Nine International be
officials said. allowed,” Nik Haslinie said.
by Rozanna Latiff
A total of 582 Rohingya escaped the Reuters Lawyer Nur Fatin Najwa Ahmad
Sungai Bakap temporary immigration de- Zainol, who represented Alyaa Syuhai-
tention camp in northern Penang state by thorities searched for the remaining de- la, said her client agreed for the items
breaking down doors and barrier grills, tainees who had fled. to be handed over to the government.
though 362 have since been rearrested,
the immigration department said in a Two men, two women, a boy, and a On Sept 29 last year, the public pros-
statement. girl were killed after being hit by vehicles ecutor filed a notice of motion to for-
while trying to cross a highway some eight feit money belonging to businessman
Malaysia, which does not recognise ref- kilometres away from the detention camp, Alvin Goh Leong Yeong amounting to
ugee status, has long been a favoured des- Kedah state police chiefWan HassanWan RM60,232.01 in his three bank accounts
tination for ethnic Rohingya fleeing per- Ahmad told reporters in a live-streamed and RM10,588.94 and RM16,721.75
secution in Myanmar or refugee camps press conference. respectively, belonging to his companies
in Bangladesh. Malaysian House of Internet Sdn Bhd
Prior to the riot, the camp held 664 and Networld Computer (KL) Sdn Bhd.
Since 2020, however, thousands have Rohingya refugees, including 137 children.
been rounded up and housed in crowded Also applied was forfeiture of money
detention centres as part of what Malay- belonging to Alyaa Syuhaila amounting
sian authorities said are efforts to stop the to RM353,723.81 which was in her five
spread of the coronavirus. bank accounts, and RM75,846.82 be-
longing to Nine Nine International.
Police said they were still investigating
the cause of Wednesday’s riot, while au- The applications were filed on grounds
that the money, which was seized in De-
cember 2020 and January 2021, were al-
legedly proceeds obtained from unlawful
activities, namely online gambling and
cryptocurrency trading, which is an of-
fence under the Anti-Money Laundering,
Anti-Terrorism Financing and Proceeds
of Unlawful Activities Act 2001.

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KUALA LUMPUR (April 20): The Ses- Four lawyers the government to prevent the recurrence
sions Court here onWednesday (April 20) appointed byTMJ of abuse cases such as the one involving
allowed the application of four lawyers ap- to hold watching Bella.
pointed by Tunku Mahkota Johor Tunku brief in Bella case
Ismail Sultan Ibrahim to hold a watching Bella’s case went viral on social media
brief in the trial of Rumah Bonda found- Bernama last year when a woman claimed that the
er, Siti Bainun Ahd Razali, who is charged teenager was scalded by hot water and was
with neglecting and abusing a teenage girl Tunku Mahkota Johor Tunku Ismail tied while under the care of Rumah Bonda,
with Down syndrome known as Bella. Sultan Ibrahim a welfare home.

Judge Izralizam Sanusi made the de- Following that, Siti Bainun, 30, was
cision after lawyer Datuk Khairul Anwar charged with neglecting and abusing the
Rahmat informed the court that he and 13-year-old girl, causing the victim to suf-
three other lawyers had been appointed to fer physical and emotional injuries.
hold a watching brief for Bella.
She pleaded not guilty to charges of
“We are applying to follow the case neglect and abuse under Section 31(1)(a)
with the consent of Women, Family and of the Child Act 2001, which carries a 20-
Community Development Minister Da- year jail sentence or a RM50,000 fine or
tuk Seri Rina Harun after she was grant- both if convicted.
ed an audience with the Tunku Mahkota
Johor yesterday (Tuesday, April 19),” the Also attending the proceedings today
lawyer said. was Senator Datuk Ras Adiba Radzi, who
represents persons with disabilities in De-
“We will also seek to appear as an “ami- wan Negara.
cus curiae” (friend of the court) for Bella
besides also applying for the Court Re- Meanwhile, in a media statement is-
cording Transcript (CRT) of prior pro- sued, Khairul Anwar expressed gratitude
ceedings,” he said. for the court’s decision on Wednesday.

The three other lawyers are Datuk Bal- “We are also considering being more ac-
jit Singh Sidhu, Datuk Ikbal Salam and tively involved in the proceedings by seek-
Mohd RadziYatiman. ing to appear as an amicus curiae (friend of
the court) once we receive complete doc-
OnTuesday,Tunku Ismail, after a meet- umentation and case proceeding records.
ing with Rina at the Royal Johor Polo Club
in Johor Bahru, made three proposals to “This is important for us to assist the
court and the public prosecutor in achiev-
ing justice for Bella,” Khairul Anwar said.

PUTRAJAYA (April 20): A padi farmer Padi farmer On July 28, 2020, Mohamad Faiz, 25,
succeeded in his application at the Court cites Najib’s case, was found guilty by the Sessions Court
of Appeal here on Wednesday (April 20) succeeds in bid of causing grievous hurt to Nus Hassan,
to get a stay of execution of his seven-year 42, at Kg Tambak Banggu, Kota Bharu,
jail term for causing grievous hurt to a fel- to get stay of Kelantan at 7pm on June 26, 2019.
low villageman pending the outcome of his execution of jail
final appeal, by citing Datuk Seri Najib The Sessions Court judge sentenced
Razak’s case. sentence him to seven years in jail and ordered him
to be given two strokes of the rotan but
Mohamad Faiz Mohd Ruseli’s lawyer Bernama allowed Mohamad Faiz’s application for a
Mohd Azrul Hasyimi Mohamad had cited stay of execution of his sentence, pending
the case of Najib who was convicted on his appeal to the High Court.
seven corruption charges involving SRC
International Sdn Bhd funds but was given The High Court, however, on Dec 14,
a stay of execution to defer going to jail, 2020, upheld the Sessions Court’s de-
pending disposal of his appeals. cision and denied a stay of execution of
Mohamad Faiz’s jail sentence, pending his
The Court of Appeal’s three-member appeal against conviction and sentence to
panel comprising Justice Datuk Seri Ka- the Court of Appeal.
maludin Md Said, Datuk Che Mohd Ru-
zima Ghazali and Datuk Hashim Hamzah Coincidentally, both Mohamad Faiz
agreed to allow Mohamad Faiz’s appli- and Najib were sentenced by different
cation for a stay of execution of his jail courts on different charges on the same
sentence. day on July 28, 2020.

“We agree that the sentence be sus- In Najib’s case, the High Court granted
pended pending the outcome of his ap- the former prime minister’s application for a
peal against conviction and sentence,” said stay of execution of his 12 years jail sentence
Justice Kamaludin. and a fine of RM210 million,and also allowed
him to be released on bail of RM2 million.
Mohamad Faiz was also granted bail
of RM30,000 with one surety but was or- On Dec 8 last year, the Court of Appeal,
dered to report to the Binjai police station which upheld the High Court’s decision,
in Kota Baru, Kelantan, once every two also allowed Najib a stay of execution of
weeks until his appeal is heard. his sentence and fine, pending his final
appeal in the Federal Court.

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Fed’s aggressive rate hike plans
jolt policy in China and Japan

Bloomberg

Bloomberg

(April 20): Asia’s two biggest central banks The People’s Bank of China.
are having to grapple with the fallout from
the Federal Reserve’s hawkish pivot. moves while sticking with his commitment as energy import costs soar, further under-
to keep stimulating a fragile economy. Ja- mining the yen.
The interest rates China’s biggest banks pan last intervened to sell dollars and buy
charge their best customers were held yen in June 1998 at the height of the Asian At the same time, China’s outflows have
steady on Wednesday, even as the econo- currency crisis. been modest relative to the big moves seen
my slows under the weight of rolling lock- in the yen. Portfolio shifts are to be ex-
downs to curb Covid-19. That may slow The BOJ is likely to consider notable pected when the yield differential between
the pace of capital outflows after investors changes in its inflation and growth fore- nations moves in opposite directions, said
sold government bonds at a record pace casts next week, according to people famil- Helge Berger, head of the International
over February and March as the People’s iar with the matter.The bank will release Monetary Fund’s China mission.
Bank of China eased monetary policy, the forecasts in its quarterly economic out-
while the Fed tightened. look report on April 28, after concluding “It is the laws of international macro-
a two-day meeting. economics at work,” Berger said in an in-
In Japan, the central bank was forced terview.
to ramp up its bond purchases again on “I don’t think Japan or China can com-
Wednesday, as investors continue to test its pletely decouple their monetary policies Still, the Fed’s expected emphasis on
ability to keep yields low as their American with the Fed because doing so will further raising interest rates over the coming
equivalents climb.The yen has suffered a weaken their currencies and widen their months will continue to be a factor.
historic run of losses as a result, prompting yield gaps,” said Nobuyasu Atago, former
Bank of Japan Governor Haruhiko Kuroda head of the price statistics division at the Fed policymakers are reinforcing expec-
this week to amp up his warnings on the BOJ and nowTokyo-based chief economist tations they’ll raise interest rates by a half
yen’s sharp moves, indicating there may at Ichiyoshi Securities Co Ltd. percentage-point next month, and inter-
be a limit to how long the BOJ can remain est-rate futures are almost fully priced for a
this dovish. It’s possible the BOJ gives up its policy half-point hike at the Fed’s May 3-4 meet-
of yield curve control, and that the PBOC ing. That’s when officials could also an-
“The Fed’s tightening is having a clear moves further away from broad rate cuts nounce a start date for beginning to shrink
impact on China and Japan,” said Tuuli and uses other channels to inject mon- their almost US$9 trillion balance sheet.
McCully, head of Asia-Pacific economics ey into the economy, said Alicia Garcia
at Scotiabank. “It is making their mon- Herrero, chief economist for Asia Pacific St. Louis Fed President James Bullard,
etary policy conduct much more com- at Natixis SA. speaking Monday, said the central bank
plicated.” shouldn’t rule out even larger hikes, in-
“Nobody can hide from such a rapid voking the 75 basis point move that for-
That divergence is expected to deep- tightening as the one the Fed is carrying mer Fed Chair Alan Greenspan delivered
en. Fed officials have signaled a relatively out,” she said. in 1994.
rapid pace of rate increases over the rest
of the year to get their benchmark rate to Other factors Such an aggressive hiking cycle will in-
what they deem to be a “neutral” level of The Fed isn’t the only driver at play for evitably lure foreign investors away from
2.25%-2.5%, or higher. They lifted their either China or Japan. Russia’s invasion rival economies, according to Zhang Zhi-
benchmark rate by a quarter-percentage of Ukraine has sent jitters through global wei, Hong Kong-based chief economist at
point in March, after keeping it near zero investors, as have the lockdowns in China. Pinpoint Asset Management Ltd.
for the previous two years. Japan has also been running trade deficits
“It’s not just China, other emerg-
Subtle pivot ing markets will also experience similar
Analysts say both the Chinese and Japanese trends,” he said.
central banks will make a subtle pivot in
order to plug the money flows.

The PBOC is holding off on broad-
based interest rate cuts, and is instead us-
ing window guidance and other measures
to ensure banks are lending to the parts
of the economy that need it most. That
reticence to lower rates comes as the yuan
trading offshore weakened on Tuesday by
the most since July, while US Treasury
yields surged and the greenback strength-
ened.The PBOC set its reference rate for
the yuan at a weaker level on Wednesday.

Japan is also treading carefully as evi-
denced by Kuroda’s warnings on sharp yen

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(April 20): Investor outflows from China IMF says China’s 4.4%, down from a prior 4.8% estimate
reflect a deepening divergence in mone- outflows show and compared with the government’s of-
tary policy between the world’s two big- deepening ficial target of about 5.5%.
gest economies. divergence
with US That fading outlook and diminished
The Federal Reserve has signalled ag- yield differential are weighing on the yuan,
gressive rate hikes while the People’s Bank by Enda Curran which fell to its weakest level in six months.
of China has eased policy, and that divide Bloomberg Any signs of a slowdown in China’s export
is eroding the yield differential between boom would also weigh on global investors.
both economies prompting investors to
look elsewhere, according to Helge Berger, Still, the pace of outflows appears to be
head of the International Monetary Fund’s contained, at least for now.
China mission.
“What we are seeing is really small
China’s benchmark sovereign 10-year compared to the massive inflows we’ve
notes now offer no yield advantage over seen over the past two years,” Berger said.
comparable USTreasuries for the first time “Both of these central banks are reacting
since 2010. to changing domestic conditions.”

“It is the laws of international macroe-
conomics at work,” Berger said in an inter-
view. “We are seeing a significant change
in the relative interest rate position of Chi-
na, which is highly correlated with slowing
growth, while we have the opposite in key
advanced economies, especially the US.”

Outflows from China’s stocks, bonds
and mutual funds accelerated after Russia’s
invasion of Ukraine in February. Global
funds sold more than US$7 billion worth
of mainland-listed stocks via exchange
links with Hong Kong in March and sold
US$14 billion in Chinese government debt
over the past two months.

China’s economy slowing under the
weight of rolling lockdowns to curb the
spread of Covid-19 has prompted a wave
of downgrades to China’s growth forecasts.
The IMF tips China’s economy to grow

SHANGHAI (April 20): China surprising- China Goldman Sachs said the PBOC’s restraint
ly kept its benchmark lending rates steady unexpectedly may reflect concern over inflation and ag-
on Wednesday, with markets seeing the keeps lending gressive monetary tightening by the US
move as Beijing’s cautious approach to roll- benchmark Federal Reserve.
ing out more easing measures as the econ- unchanged
omy slows due to Covid-19 lockdowns. Separately, some market participants
by Winni Zhou & Andrew Galbraith pointed out that recent robust credit
In contrast to most major economies Reuters growth could also be part of the reason
that have started to tighten monetary pol- banks refrained from lowering the lend-
icy to combat inflation, China has stepped in the second quarter of this year. ing benchmark.
up easing to cushion the slowdown. A vast majority of the 28 traders and
“The unmoved LPR suggests loan
But such policy divergence with major analysts surveyed in a snap Reuters poll demand is now not bad in the views of
central banks could prompt capital out- this week expected a reduction this month. banks,” said Xing Zhaopeng, senior China
flows, adding pressure on the yuan. Among them, 11, or 39% of all respond- strategist at ANZ, said.
ents, predicted a marginal cut of 5 basis
The one-year loan prime rate (LPR) points in both rates. “We may need patience to observe more
was kept at 3.70% and the five-year LPR credit data,” he said, adding LPR could still
was unchanged at 4.60%. The PBOC last week lowered the amount be lowered this year, when credit growth
of cash banks must set aside as reserves by deteriorates even if the PBOC is reluc-
Marco Sun, chief financial markets a smaller-than-expected margin to provide tant to cut medium-term lending facility
analyst at MUFG Bank, said policy di- a relatively modest cash injection. (MLF), which serves as a guide to the LPR.
vergence between China and the United
States was likely to continue despite steady Global investment banks including New bank lending in China rose more
LPR in April as the PBOC’s policy stance than expected in March, while broad cred-
appeared to be more dovish. it growth accelerated from the previous
month.
“Recovery from Covid is a challenging task
for global policymakers,” Sun said, adding Most new and outstanding loans in
that the economic impact from the latest wave China are based on the one-year LPR.
of Covid-19 infections remains uncertain. The five-year rate influences the pricing
of mortgages.
Sun still sees a chance to lower the LPR

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ECB’s Kazaks says a July interest-rate
hike is ‘possible’

(April 20): The European Central Bank by Jana Randow, Aaron Eglitis zaks said. “Whether it could already hap-
may raise interest rates as soon as July & James Hirai pen at the end of June, we’ll have to dis-
amid “significant” inflation risks that will Bloomberg cuss when we get new forecasts.”
probably require further tightening lat-
er in the year, according to Governing ly. Central banks in the US and the UK Bloomberg reported earlier this month
Council member Martins Kazaks. are further ahead in removing crisis-era that ECB staff is working on a backstop
stimulus, which has exposed the ECB to use against debt-market stress. But Ka-
He said he wouldn’t challenge trader to criticism that it’s underestimating the zaks argued that there’s currently no need
bets that the ECB’s deposit rate — cur- inflation risks. for new tools to ensure monetary policy
rently at a record-low -0.5% — will in- reaches all parts of the 19-nation region.
crease to zero this year. There’s also no “Gradual doesn’t mean slow,” said
need for the rate to linger at this “magical Kazaks, who tends to have hawkish policy “As far as I’m concerned, it’s sufficient
number” for longer than necessary. views. “It doesn’t mean being conscious- to say ‘We will do what’s our task and
ly behind the curve. No, it just means we will deliver’,” he said. “We’ve done it
“A rate increase in July is possible, and checking if taken policy measures are before and we’ll do it again if needed.”
I have no reason to disagree with what appropriate.”
markets are pricing for the second half On the risks to the economic outlook,
of the year,” Kazaks, who heads Latvia’s Kazaks said that rate increases of 25 he pointed to remaining pandemic dis-
central bank, said in a Bloomberg inter- basis points “seem appropriate” for now, ruptions, supply chains and the war in
view. “We are on a solid path of policy though policy makers can always discuss Ukraine. He also said the economy is
normalization” where “we step-by-step larger moves depending on the economic probably closer to the “adverse scenar-
gradually get to zero and then above.” data. Current inflation readings mean the io” the ECB published in March, which
ECB shouldn’t wait for faster wage growth, foresees weaker growth and faster infla-
The euro extended its gain after the and even a significant slowdown in price tion this year, and the risk of a technical
comments were published, and was up pressures or the economy would only delay, recession is “non-trivial.”
0.7% to US$1.0867 as of 11:54 a.m. not derail, policy normalization, he said.
Frankfurt time. German two-year yields Like many of its European peers, the
— which are the most sensitive to mon- Policy makers have been adamant that former Soviet republic is trying to speed
etary policy — erased their decline. one precondition for raising rates for the up efforts to wean itself off Russian gas.
first time in more than a decade is halting Kazaks said the region would benefit from
With euro-area inflation at a record a 2015 bond-buying tool.That decision is a joint fund — similar to the one created
7.5% and rising, policy makers are press- on the agenda for their June 8-9 meeting. in response to the pandemic — to help
ing ahead with unwinding monetary stim- energy independence and investment in
ulus this year. Money markets are betting “We haven’t seen any major elements renewables.
on more than a 50% chance of a quar- of stress in financial markets, which makes
ter-point rate hike by July, with 25 basis me think that ending QE early in the third “Sanctions on Russia are a necessary
points of tightening baked in for Septem- quarter is possible and appropriate,” Ka- condition but for them to be efficient we
ber and December. ourselves need to change the ways we be-
have,” he said. “The challenge for Europe
Still, the economic fallout from is to be able to switch away from Russian
the war in Ukraine means policy energy sources before Russia finds new
makers are moving cautious- ways to supply to other buyers.”

reuters

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TOKYO (April 20): The Bank of Japan Bloomberg its 0% target as long as it stays below the
(BOJ) offered on Wednesday to buy an 0.25% upper limit.
unlimited amount of 10-year Japanese BOJ defends yield
government bonds (JGBs) at 0.25%, in target, offers to It accepted all of the ¥225.1 billion
its third move since February to defend buy unlimited (US$1.75 billion) in bids it received in
its yield target. 10-year bonds Wednesday’s operation.

The yield on the 10-year JGBs rose to by Junko Fujita The central bank also offered to buy
as high as 0.25% in early trade, the upper Reuters unlimited amounts of 10-year bonds at
limit of its target of around 0%, and re- 0.25% in February and March.
mained at that level throughout the day. of JGBs,” said TakafumiYamawaki, head of
Japan fixed income research at JPMorgan Yields on most other JGB tenors were
The rise in yields comes as the yen weak- Securities. also higher, with the five-year up half a
ens sharply to two-decade lows against the basis point to 0.03%, 20-year adding 2.5
US dollar amid a relentless widening of Jap- “If the central bank allows 10-year bond basis points to 0.775%, and 30-year rising
anese and US yield spreads, prompting mar- yields to keep going up, its message to the 1.5 basis points to 0.98%.
kets to test the central bank’s commitment market would become unclear.”
to its super-easy yield-curve-control policy. With the Japanese economy still weak
The BOJ’s guidance is that it will allow and inflation modest, the BOJ has stressed
The benchmark 10-yearTreasury yield the 10-year yield to move flexibly around its resolve to keep policy ultra loose even as
climbed to the highest since late 2018 at the US Federal Reserve looks set to raise
2.981% in Tokyo trading on Wednesday. rates aggressively to stem soaring prices.

“The Bank of Japan has no other choice BOJ governor Haruhiko Kuroda said
than to keep offering unlimited purchases on Monday the yen’s recent moves had
been “quite sharp” and could hurt compa-
nies’ business plans, offering his strongest
warning yet of the risks stemming from the
currency’s depreciation.

Minister of Finance Shunichi Suzuki
was more categorical onTuesday, warning
that the damage to the economy from a
weakening yen at present is greater than
the benefits.

The yen sank to near 130 per dollar
on Wednesday — a level not seen for two
decades — raising the risk of direct inter-
vention, with which the central bank would
buy up large amounts of yen in the open
market with its foreign-currency reserves.

The last time Japan intervened to support
its currency was in 1998, when the Asian
financial crisis triggered a yen sell-off and
a rapid capital outflows from the region.

JAKARTA (April 20): Indonesia recorded Indonesia posts riod last year to 501 trillion rupiah, while
a 10.3 trillion rupiah (US$717.87 mil- budget surplus of spending fell 6.2% to 490.6 trillion rupiah,
lion) budget surplus in the first quar- nearly US$720 mil the minister said.
ter (1Q) of 2022, equivalent to 0.06%
of gross domestic product, as high com- for 1Q Tax revenue is set to increase further
modity prices and an improving domes- in April, after the government raised value
tic economy boost revenue, its finance by Stefanno Sulaiman & Gayatri Suroyo added tax rate for most goods and services
minister said. Reuters by one percentage point to 11%.

The surplus was in stark contrast to Bloomberg Despite the budget’s stronger position,
2021’s 143.7 trillion rupiah budget defi- Sri Mulyani noted that rising commodity
cit, when the country’s fiscal position was prices had also raised Indonesia’s spend-
under greater strain due to the impact of ing on subsidies.
the Covid-19 pandemic.
The subsidy bill in 1Q, including for
Sri Mulyani Indrawati also told an energy, fertiliser, interest payments on mi-
online news conference on Wednesday croloans and carry-over payables from last
the surplus had helped Indonesia re- year, jumped to 38.51 trillion rupiah, from
duce its bond issuance, but said the 21.38 trillion rupiah in the same quarter
government would keep monitoring in 2021.
the bond market amid global mone-
tary tightening. Deputy finance minister Suahasil Naz-
ara said the government was still weigh-
Total revenue in the January-March ing up whether to adjust energy prices to
quarter surged 32.1% from the same pe- contain spending on subsidies, but said
the main focus remained supporting In-
Sri Mulyani Indrawati donesia’s economic recovery from the
pandemic.

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Netflix breaks own rules as subscriber
losses batter shares

LOS ANGELES (April 20): Netflix Inc is by Lucas Shaw & Subrat Patnaik ‘Makes sense’
throwing out all of its old rules after losing Bloomberg “Allowing consumers who would like to
customers for the first time in a decade, have lower price and are ad tolerant makes
saying it will introduce an advertising-sup- reuters a lot of sense,” Hastings saidTuesday. Net-
ported option and crack down on people flix will explore the best way to offer adver-
sharing passwords. company is experimenting with ways to tising over the next couple of years.
sign up those viewers, such as asking peo-
The plans are intended to help stop ple who are sharing someone else’s account Cracking down on password sharing is
the loss of subscribers that pummeled to pay more. a risk for a company that started by giving
the streaming service Wednesday, push- customers a cheaper, more convenient al-
ing the stock down as much as 31% “It allows us to bring in revenue for ternative to cable. By nudging customers
in its biggest drop since October 2011. everyone who is viewing and who gets to pay — and inserting advertising — Net-
The plunge made Netflix the worst-per- value from entertainment we’re offering,” flix begins to resemble what it replaced.
forming stock of the year on both the Chief Operating Officer Greg Peters said
benchmark S&P 500 and Nasdaq 100 during an interview with analyst Doug An- But the company needs help after los-
indexes. muth of JPMorgan Chase & Co. ing customers in three of its four regions
in the first quarter, including more than
Co-founder Reed Hastings has said Netflix’s troubles are a warning sign for 600,000 in the US and Canada. Netflix
for years that he doesn’t want to offer ad- its peers and competitors. After watching blamed most of that on a price increase,
vertising and had no problems with pass- millions of customers abandon pay TV and said the decline was expected. Rus-
word sharing. But the company is changing for streaming, US entertainment giants sia’s invasion of Ukraine cost the company
course after losing 200,000 customers in merged and restructured to compete with another 700,000 customers when it had
the first quarter, the first time it has shed Netflix. Investors encouraged this strategic to pull its service in Russia, resulting in a
subscribers since 2011. Netflix also pro- shift, boosting shares of companies like loss of 300,000 customers in Europe, the
jected it will shrink by another 2 million Walt Disney Co that demonstrated a com- Middle East and Africa.
customers in the current second quarter, a mitment to streaming.
huge setback for a company that regularly Overall, Netflix had forecast subscrib-
grew by 25 million subscribers or more a Investors have begun to question ers would grow by 2.5 million in the first
year. Netflix also will curb its spending whether some of these media compa- quarter, roughly in line with Wall Street
on films and TV shows in response to the nies will sign up enough customers to estimates. For the current period, ana-
customer losses. justify all the money they are spending lysts were predicting gains of 2.43 mil-
on fresh programming. Disney fell as lion. First-quarter revenue grew 9.8% to
“It’s just shocking,” said analyst Mi- much as 5.2% in extended trading af- US$7.87 billion, missing analysts’ esti-
chael Nathanson of MoffettNathan- ter Netflix reported its outlook, while mates. Profit, at US$3.53 a share, easily
son LLC. “Everything they’ve tried to Warner Bros. Discovery Inc, the own- topped projections of US$2.91.
convince me of over the last five years er of HBO Max, declined as much as No explanation
was given up in one quarter. It’s such 2.8%. Shares of Roku Inc, the maker “They were never able to explain why or
an about face.” of set-top boxes for streaming, dropped how growth was slowing,” Nathanson said.
as much as 8.3%. All of these competi- “Now they’ve decided growth is slowing.
Investors, analysts and Hollywood ex- tors offer advertising-supported servic- How did this change in two quarters?”
ecutives had been bracing for the company es, or are planning to do so in the near
to report a sluggish start to the year, but future. Analysts and competitors have Asia was the lone bright spot. Netflix add-
Wall Street still expected Netflix to add speculated for years that Netflix would ed more than 1 million customers in the re-
2.5 million customers in the first quarter. offer advertising, only to be rejected by gion, buoyed by popular new titles such as the
The shares are already down more than Hastings. Netflix always said its viewers South Korean drama “All of Us Are Dead”.
40% this year. preferred its service over cable TV be-
cause there were no ads. Hastings also Netflix remains well ahead of most of
Hastings and co-Chief Executive Officer didn’t want to compete with Google and its competitors outside the US, and is the
Ted Sarandos had previously dismissed Facebook in selling ads online.Yet he has largest streaming service in the world.The
the company’s slowing subscriber sign-ups finally relented. company believes it can execute its way
as a speed bump related to the pandemic, out of the current predicament by luring
which had accelerated Netflix’s growth in new customers with better programmes
2020. But the company’s growth hasn’t and finding more ways to charge its exist-
returned to pre-pandemic levels. ing user base. The company still expects
to add customers this year, and will have
Four causes a stronger slate of new shows in the back
Management pointed to four causes, in- half of the year. Whether Wall Street be-
cluding the prevalence of password shar- lieves that is up for debate.
ing and growing competition. The com-
pany said there are more than 100 million Read also: Ackman’s fund likely feeling the
households that use its service and don’t Netflix pain as shares plunge Click here
pay for it, on top of its 221.6 million sub-
scribers.The Los Gatos, California-based

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ZURICH (April 20): Credit Suisse Group Credit Suisse tive revenue and provisions for credit losses.
expects to report a first-quarter (1Q) loss warns of 1Q loss; The 1Q results will also include previ-
after increasing legal provisions, seeing
business activity slow and taking a hit from shares fall ously flagged losses of approximately 350
the fallout of Russia’s invasion of Ukraine, million francs relating to a fall in the val-
the Swiss bank said on Wednesday. by Michael Shields & Oliver Hirt ue of its 8.6% holding in Allfunds Group,
Reuters Credit Suisse said.
The bank is still reeling from billions in
losses racked up in 2021, which prompt- reuters Underlying results had been adversely
ed a top management shake-up, and as it impacted by a reduction in capital market
faces further probes over compliance and In earnings due on April 27, it said the issuances and by lower business activity,
risk failings. group “would expect to report a loss as a it added.
consequence of this increase in reserves”,
Its shares fell 1.5% in early trading. without being more specific. These losses would be partially offset by
“What surprises us is that in mid- a recovery in provisions of approximate-
March, at an investor conference, CEO Its exposure to the impact of Russia’s inva- ly 170 million francs in respect of claims
(chief executive officer)Thomas Gottstein sion of Ukraine would adversely affect results against collapsed investment fund Arche-
was still talking about a solid business per- by an aggregate 200 million francs in nega- gos and by real estate gains of around 160
formance in the first two months,” Luzern- million francs, it said.
er Kantonalbank said in a research note.
Credit Suisse said provisions relating “While we were expecting extraor-
to a number of previously disclosed le- dinary negative impacts of about 600
gal matters, all of which originated more million francs for the quarter, the total
than a decade ago, would rise by around gross impact of 1,250 million francs and
600 million Swiss francs (US$631 mil- net impact of approximately 900 million
lion) to total approximately 700 million francs clearly exceeds our assumptions.
francs. Another quarterly loss is a clear disap-
This came after a Bermuda court last pointment,” Bank Vontobel analyst An-
month ruled Georgia’s former prime min- dreas Venditti wrote.
ister and his family were due damages
“substantially in excess of US$500 mil- Investor advisers Glass Lewis and ISS
lion” from Credit Suisse’s local life insur- have recommended shareholders vote
ance arm as a result of fraud. against discharging the bank’s board and
management from liability for the finan-
cial year 2020 at its annual general meet-
ing on April 29.

BRUSSELS (April 20): Dutch brewer Heineken buoyed ‘Inflationary pressures’
Heineken stuck to its 2022 profit mar- by higher beer The Dutch maker of Heineken, Sol, and
gin forecast on Wednesday after a sharp sales and prices Tiger lagers and Strongbow cider said that
jump in first-quarter beer sales and prices Russia’s invasion of Ukraine had brought
cheered investors despite added uncertain- by Philip Blenkinsop additional uncertainty to the global eco-
ty from the conflict in Ukraine. Reuters nomic outlook and commodity markets.

Driven by a steady loosening of corona- reuters “We expect mounting inflationary pres-
virus restrictions, particularly in Europe, sures to impact household disposable in-
Heineken’s beer volumes rose by 5.2% on He added that the news bodes well come and a consequent risk to beer con-
a like-for-like basis from the same period for the roll-out of new products such as sumption later in the year,” Heineken said
last year, beating the 3.5% average forecast Heineken Silver and said the consumer in a statement, echoing a view first ex-
in a company-compiled poll. shift towards more premium beers was pressed in February before Russia invaded
another positive development. Ukraine in what Moscow called a “special
The increase in Europe was 11.5%, with military operation”.
beer sales in bars and restaurants almost “Raising the price on premium prod-
tripling. ucts won’t be met with as much consumer Heineken said it was benefitting from
kickback as it would on a value offering,” hedging positions taken in 2021 but faced
Overall, the world’s second-largest he said. rising costs, supply chain challenges, and
brewer also raised the average income pressure from its decision to leave Russia.
per litre by 18.3% through direct price
increases, consumers trading up to more For all that, however, the company
expensive beers and a shift in sales from maintained its guidance of “stable to mod-
supermarkets to bars, resulting in a 24.9% est” improvement to its operating profit
boost to revenue. margin in 2022.

Heineken shares were up 3.3% to Heineken said in February that spi-
€92.30 by 0900 GMT, among the top per- ralling inflation could lead to lower beer
formers in the FTSEurofirst 300 index of consumption, casting doubt on its plan to
European blue-chip stocks. raise its operating margin to 17% in 2023.

“The main takeaway today, and the The Dutch brewer said then that input
reason markets have reacted positively, costs would rise by a mid-teens percent-
is the resurgence of beer drinking in Eu- age rate, with barley double its price of
rope following restrictions seen last year,” a year ago and aluminium up by about
said Hargreaves Lansdown analyst Matt 50%. Energy and freight costs have also
Britzman. risen sharply.

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Global China’s pursuit of a Covid Zero policy US pension giant
smartphone that’s impacted both demand and supply to vote to replace
market had worst in the world’s biggest smartphone market,
drop since virus with domestic manufacturers struggling Buffett as
to secure components for their entry-level Berkshire chair
outbreak devices, the researchers found.
by Patrick Winters
by Debby Wu “Markets saw a spike in Covid-19 cases Bloomberg
Bloomberg due to the Omicron variant,” said Can-
alysVice President Nicole Peng. “Vendors (April 20): California Public Employees’
(April 20): Smartphone shipments fell 11% face major uncertainty due to the Rus- Retirement System, the largest public
in the first quarter, the worst drop since the sia-Ukraine war, China’s rolling lockdowns pension fund in the US, said it plans
coronavirus outbreak, after inflation fears, and the threat of inflation. All this added to vote for a shareholder proposal that
Russia’s invasion of Ukraine and the Omi- to traditionally slow seasonal demand.” Berkshire Hathaway Inc replace billion-
cron variant derailed an unsteady recovery aire Warren Buffett as chairman.
for the sector. China’s quarterly production of semi-
conductors shrank for the first time since The fund has over US$450 billion
Samsung Electronics Co reclaimed the early 2019 as consumer electronics demand in assets under management and about
lead from Apple Inc with a 24% share, softened and Covid-triggered lockdowns US$2.3 billion in Berkshire shares, it
according to Canalys market data, with in regions including Shanghai disrupted said in a filing Tuesday.
Chinese vendors Xiaomi Corp, Oppo and output, official figures showed this week.
Vivo filling out the top five in roughly the The non-profit National Legal and
same proportion as they did a year ago. Component shortages may improve Policy Center, which is also a share-
The major slowdown was due in part to sooner than expected, however, and pro- holder, has called for an independent
vide cost relief to manufacturers, Peng said. chair, saying the governance structure
is weakened with both Chairman and
Global smartphone demand is likely to Chief Executive Officer roles held by
be curbed by an inflationary environment, the same official.
according to Bloomberg Intelligence analyst
Woo Jin Ho, who expects 2022 sales of Berkshire opposes the proposal, say-
roughly US$527 billion, little changed ing last month that Buffett should con-
from last year and 4% below IDC’s target. tinue in both roles.

Goldman CEO, (April 19): Goldman Sachs Chief Executive “However, as has been stated on nu-
top deputies David Solomon and his top deputies will merous occasions by Mr Buffett in the
to get cut of get a part of profits from the bank’s private past, once Mr Buffett is no longer Berk-
profits from investment funds, the Wall Street Journal re- shire’s CEO, a non-management direc-
bank’s private ported on Tuesday, citing people familiar tor should be named Board Chair,” the
with the matter. company said at the time.
investment funds
—WSJ The cut of profits could be worth hun- Buffett, 91, has a 32% voting interest
dreds of millions of dollars over the next in the company, and while he has given
by Deborah Sophia several years to the executives, according no indication his departure is imminent,
Reuters to the report. succession questions have long loomed
over Berkshire.
In the past, the profits from the private in-
vestment funds were split evenly between the Berkshire’s annual letter in February
bank and the executives managing the funds, made no mention of the succession news
the report said, adding that going forward given last year that Greg Abel was the
those executives would receive just 35%. top pick to take over for Buffett, if and
when the investor wants to step down.
Goldman’s roughly 400 partners will get Abel was, however, given a section of
10%, while 5% will go to Solomon and his the report to talk about sustainability
closest deputies, the Journal reported. efforts in some of Berkshire’s businesses.

Goldman had no immediate comment Berkshire is planning to hold its annu-
on the report. al meeting of shareholders in person in
Omaha, Nebraska this year on April 30.

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KKR leads record US$14.8 bil bid for
Australia’s Ramsay Health Care

(April 20): A group led by KKR & Co by Scott Murdoch, Harish Sridharan shortages due to isolation regulations, and
made an unsolicited near-US$15 bil- & Anshuman Daga upward wage pressure weighing on earnings.
lion bid for Ramsay Health Care Ltd on Reuters
Wednesday, underlining buyout funds’ Last year, Australian biopharmaceutical
current appetite for healthcare assets and is A$28 billion, taking debt into account, giant CSL Ltd announced an US$11.7
pushing the Australian firm’s shares up as sources said. billion offer for Swiss drugmaker Vifor
much as 30%. Pharma AG.
The offer sent the shares up as much as
If successful, the takeover would rank 30% to A$83.55, the highest in nearly six The latest deal would represent a sub-
as the biggest private equity-backed buy- years, and their biggest-ever intraday jump, stantial return for the Paul Ramsay Foun-
out of an Australian company, and would before paring gains to close up 24% at A$80. dation, Ramsay’s biggest shareholder with
also be the biggest deal in Australia this an 18.8% stake.
year, nearly doubling activity, according “The 31.3% premium to Ramsay’s
to Refinitiv data. price over the last six months is reason- Started by Paul Ramsay in 1964 by con-
able for a change of control,” said Brian verting a Sydney guest house into one of
Ramsay said in a statement it would Freitas, an analyst who publishes on re- the country’s first psychiatric hospitals, the
provide the KKR-led group with due dil- search platform Smartkarma. Foundation sold nearly 11% of Ramsay in
igence on a non-exclusive basis and talks 2019 for A$61.80 per share.
were at a preliminary stage. “The share offer implies a forward
earnings multiple of 33 times versus an The foundation did not respond to a
Australian pension fund HESTA and average of 17 times for its peers, so share- request for comment.
sovereign fund Abu Dhabi Investment Au- holders should be fine with the proposed
thority are participants in the consortium, offer price.” Ramsay operates hospitals and clinics
according to a source with direct knowl- across 10 countries in three continents,
edge of the matter.The person declined to Ramsay has reviewed the proposal with with a network of more than 530 locations.
be named as the companies’ involvement its advisers and said it is seeking infor- It has 72 private hospitals and day surgery
was not public. mation from the consortium regarding its units in Australia, while it operates clin-
funding and structure of the deal. ics and primary care units in about 350
HESTA didn’t respond to a request for locations across six countries in Europe.
comment, while Abu Dhabi Investment KKR did not respond to a request for
Authority declined to comment. comment. KKR currently owns French healthcare
group Elsan.
The non-binding proposal comes as Refinitiv data shows total deal value of
record-low interest rates prompt private US$17.4 billion in Australia so far this Ramsay said it was still pursuing a
equity firms, superannuation and pen- year, with a 41% slump in the first quar- US$1.35 billion buyout offer it had re-
sion funds with ample liquidity to invest ter from a year earlier. The country saw ceived previously from IHH Healthcare
in healthcare and infrastructure assets. a flurry of blockbuster takeovers in the Bhd for its Asia joint venture with Malay-
past year, including the purchase of Syd- sia’s Sime Darby Holdings.
The A$88 cash per share proposal, ney Airport and Block Inc’s takeover of
worth A$20.05 billion (US$14.8 billion) buy-now-pay-later star Afterpay. Ramsay has hired UBS and Herbert
in total, represents a nearly 37% premi- Smith Freehills as financial and legal ad-
um to Ramsay’s Tuesday closing price of The coronavirus pandemic has weighed on visers, respectively, for the KKR-led con-
A$64.40.The enterprise value of the deal healthcare operators including Ramsay, with sortium’s proposal. KKR is advised by
the shutdown of non-urgent surgeries, staffing Barrenjoey Capital and Credit Suisse,
sources said.

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RioTinto line border restrictions put in place to curb reuters
suffers iron ore the spread of Covid-19.The measures left
shipments drop Rio and other miners struggling to hire China buys
mine workers and train drivers even as cheap Russian
on Covid-19 pent-up demand fuelled a rally in com- coal as world
delays, flags risks modity prices. shuns Moscow

by Praveen Menon & Sameer Manekar “The continuing poor operations leave Bloomberg News
Reuters Rio with plenty of work to do,” said RBC
Capital Markets analyst Tyler Broda. (April 20): China more than dou-
SYDNEY/BENGALURU (April 20): bled imports of steel-making coal
Rio Tinto on Wednesday reported low- “In our view the operational environ- from Russia in March, procuring the
er-than-expected iron ore shipments in ment should start to improve, considering fuel at a discount as other nations
the first quarter and warned of risks from improving Pilbara flexibility and, hopeful- move to ban deliveries due to the
sustained high inflation, a resurgence of ly, a reduction in Covid-19 impacts as the war in Ukraine.
Covid-19 lockdowns in China, and a pro- year progresses.”
longed Russia-Ukraine war. Coking coal imports from Rus-
Rio said in its report that economic sia jumped to 1.4 million tons in
Labour shortages and supply chain growth and commodity demand had begun March, compared to 550,000 tons
snags impeded the Anglo-Australian min- the year positively as the world recovered for the same month last year and 1.1
ing giant’s efforts to ramp up its Pilbara from the pandemic-induced downturn. million tons in February, according
operations inWestern Australia in the first Also, supply concerns due to the war in to Chinese customs data. Imports
three months of the year. Ukraine had outweighed muted demand of thermal coal, used for power gen-
growth in China and a crackdown on spec- eration, fell as mild weather curbed
“Production in the first quarter was ulation in that country. demand and China boosted domes-
challenging as expected, re-emphasising tic output.
a need to lift our operational performance,” The speculation was associated with
RioTinto chief executive Jakob Stausholm hoarding. China is taking advantage of
said in a media statement after the com- steep discounts to Russian coal, as
pany released its first-quarter production But market expectations had been re- other buyers — like Japan and the
numbers. vised downwards amidst sustained high European Union — move to ban
inflation and a resurgence of Covid-19 imports of the fuel. While Russian
The world’s biggest iron ore produc- lockdowns in China, the report said. coal prices increased modestly in the
er shipped 71.5 million tonnes (Mt) of last year, they’re still well below rates
the steel-making commodity in the three “Further downside risks include a pro- from other suppliers, like Indonesia
months to March 31, compared with 77.8 longed war and other geopolitical tensions, and Mongolia.
Mt a year earlier and aVisible Alpha con- extended labour and supply shortages, and
sensus estimate of 76 Mt. monetary policy adjustments to curb in- Asia’s biggest economy has sig-
flation,” the report said. naled that it is interested in pur-
Production for the quarter stood at 71.7 chasing more Russia energy despite
Mt, down 6.2% from a year earlier and In March, Rio became the first major roadblocks from international banks
15% from the previous quarter. mining company to announce it was cut- and shipowners after the invasion
ting all ties with Russian businesses. It of Ukraine.
Not until early March did the miner- owned an 80% stake in Queensland Alu-
al-rich state ofWestern Australia lift hard- mina Ltd (QAL) in a joint venture with While China is moving to dras-
Russia’s Rusal, the world’s second-largest tically increase domestic coal out-
aluminium producer. put, the nation’s mines produce fuel
that is low quality and unsuitable for
Rio Tinto said earlier this month that it steel mills. That means steel-mak-
had taken sole charge of operations at QAL. ers are still dependent on overseas
suppliers for coking coal.
Global miner BHP Group is scheduled
to report its third-quarter production re-
sults on Thursday.

Bloomberg

t h u r s d a y a p r i l 2 1 , 2 0 2 2 25 T h e E d g e C E O m o r n i n g b r i e f

f e at u r e

What Singapore’s next leader says
about China, racism and expats

(April 20): The words of Lawrence Wong, Sin- by Philip J Heijmans, “What is our response to these global busi-
gapore’s finance minister, are beginning to take Joyce Koh & Ramsey Al-Rikabi nesses? Do we want them in Singapore or not?
on greater weight since he was tapped last week
to be the city-state’s presumptive next prime Bloomberg “These companies can locate their functions
minister, only its fourth since independence. in any other hub city, be it Hong Kong, New
On Monday, he warned in a speech about how Singapore will remain York or London. If we were to take a politically
the world is facing a sharper trade-off between open and welcoming. craven approach and impose many stringent
economic growth and inflation, a painful test We must. But those conditions on their ability to operate here, we will
policymakers are grappling with globally. who do business here lose out on many good investments.We would
must also recognise the have fewer foreigners for sure. But many Singa-
As a window into how he might lead Singa- value of our workforce poreans will also be deprived of good jobs and
pore, here are excerpts from recent speeches and and abide by our rules.” career opportunities. It’s like cutting off one’s
comments byWong.While they reflect the out- nose to spite one’s face.
look and policies of the establishment People’s
Action Party, which has ruled the country since “Singapore will remain open and welcoming.
1965, they also revealWong’s thinking on some We must. But those who do business here must
of the key challenges facing Singapore, from rac- also recognise the value of our workforce and
ism and immigration, to balancing China and abide by our rules.
the US, to climate change and the city-state’s
economic future. “We will continue to ensure that the compa-
nies we attract and root in Singapore are those
Open for business...and immigrants who are committed to nurturing and growing
Singapore has sought to carefully balance its our Singaporean core. Both sides need to make
need for an immigrant workforce, whether it be the effort. Singaporeans must be big-hearted
cleaners and labourers or doctors and executives. and accepting of those who are different from
Speaking in Parliament in September,Wong was us. Non-Singaporeans must respect our norms
among several government ministers trying to and way of life, and make the effort to fit in.”
make the case to wary pockets of the populace
chafing under the economic pressures of the Racism in Singapore
pandemic, and to assure global businesses that Among the first priorities at independence from
their investments are welcome. Malaysia in 1965 was creating a shared identity
among the mostly Malay, Indian and Chinese
“As a small island-state with no natural re- citizens of the new republic. The government
sources and no hinterland, the only way we can has aggressively sought to tamp down tensions.
only survive and prosper is to stay open and Wong in June 2021 publicly took the conversa-
connected. tion forward in a speech at the Institute of Policy

continues on Page 26

t h u r s d a y a p r i l 2 1 , 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

f e at u r e

from Page 25 We have entered a “We have entered a new era of greater con-
new era of greater testation for influence between countries and
Studies and the S Rajaratnam School of Inter- blocs, which may erode the rules-based multi-
national Studies, not just reaffirming the need contestation for lateral system that has been so crucial to Sin-
for harmony, but calling for greater sensitivity influence between gapore’s success. In particular, rivalry between
among the majority Chinese population and countries and blocs, the two great powers — US and China — has
stating flatly “racism still exists in Singapore”. which may erode the intensified, and will impact the world for the
rules-based multilateral rest of the decade and more.
“Social media has helped to create greater system that has been so
awareness of racism here.This has made us, es- crucial to Singapore’s “In short, we are entering a future where
pecially the majority, look closely in the mirror success. In particular, conditions are more volatile, the global envi-
and reflect deeper about who we are, and who rivalry between the ronment more unpredictable, and change more
we want to be. two great powers — fast-paced than ever. We can and must adjust,
US and China — has and still excel in this new environment.”
“We must recognise that in any multi-racial intensified, and will
society, it is harder to be a minority than a ma- impact the world Wong returned to the topic on Monday, in
jority.This is so everywhere in the world. for the rest of the the Q&A session, when discussing how the US
decade and more.” and China could potentially cooperate within
“So, it is important for the majority commu- new international frameworks.
nity in Singapore to do its part, and be sensitive
to and conscious of the needs of minorities.This “The Biden administration has now talked
cuts across all aspects of daily life. about a new Indo-Pacific Economic Framework,
which we welcome and support.We hope that the
“Let me be clear: I am not saying that we framework will be effective.We hope countries
should refrain from voicing our unhappiness, or will join and I’m sure there are many countries
that minority Singaporeans should pipe down in Asia looking forward to it.
about the prejudices they experience. On the
contrary, we should be upfront and honest about “We would strongly encourage that this is a
the racialised experiences various groups feel, framework that remains open and inclusive too.
and deal squarely with them. It’s not just about US and a few countries, but
as broad a range of participation as possible. Of
“We must continue to speak up, and even course, you can set standards of entry, so be it.
be prepared to have uncomfortable discussions And down the road, if China were to say ‘We
— not to start arguments, but to begin civilised would like to join the Indo-Pacific Economic
discussions, listen to each other, and understand Framework’. Well, if they meet the standards,
all points of view.” why not? And if we were to have that in mind
in designing our regional architecture — open,
Constrained future inclusive, ensuring that all the major powers have
In March,Wong was asked at a conference about stakes in the region — I think that’s a way for
the costs for businesses from stricter carbon taxes us to build shared interest interdependencies,
and labour regulations, and if implementation and that’s a way for us to ensure a path away
can be delayed further after coming out of the from a conflict down the road.
pandemic.
“We are talking about what’s the best way
“These constraints that we are facing on la- forward in building constructive relations and
bour and on carbon, they are not temporary. It’s ensuring that China plays a more responsive,
wishful thinking to sort of hope that some point responsible role as a major player in the new
down the road we can do away with these con- global architecture. And from that point of view,
straints. Because we can’t.Why? Let me explain. I would say that given China’s weight in the
global economy now, certainly, the issues of rep-
“On labour, so long as Singapore is success- resentation in these institutions are relevant.”
ful as an economy we will always have a tight
labour market, always. And I’m sure all of us Also during the Q&A session at the business
want the Singapore economy to remain success- conference in March,Wong addressed Russia’s
ful. So you can’t run away from that. Number invasion of Ukraine, and how that threatened
two, carbon. If we want to do something about the independence of sovereign states, no mat-
climate change and global warming, we have ter their size.
to cope with carbon as a constraint. This will
always be there, in fact we have to move more “From a broader macro perspective and from
decisively to reduce carbon. a longer term perspective, we are concerned
about what this means for broader geopolitics
“So if we understand that labour and carbon and what this means for the world.Will we, with
will be permanent constraints in our economy, this event happening, be entering a more divid-
wouldn’t it be better for us to move early, to ed, a more bifurcated world? Will we start to
adjust, restructure and transform our business see a world where increasingly it’s more about
processes to rely less on labour and to be less might being right and an erosion of the interna-
energy intensive?” tional rules-based order that has enabled small
countries like Singapore to thrive and prosper?
US, China and rules-based order These are our concerns.
In his maiden budget speech in February,
Wong addressed another possible disruptor to “These are important for us because they will
the “rules-based” order, the growing strategic impact Singapore’s future.And that’s why we have
competition between the US and China, which taken a strong stance in our approach toward this
is playing out in Singapore’s home field of South- crisis because it does affect our core interest.”
east Asia.

t h u r s d a y a p r i l 2 1 , 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

MARKETS

CPO RM 6,300.00-163.00 OIL US$ 108.090.84 RM/USD 4.2815 RM/SGD 3.1393 RM/AUD 3.1835 RM/GBP 5.5839 RM/EUR 4.6482

Top 20 active stocks

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

MNC Wireless Bhd 227.80 -0.010 0.025 66.67 57.2

Cengild Medical Bhd 96.40 0.035 0.500 0.00 409.4

TWL Holdings Bhd 49.80 0.000 0.095 90.00 327.6

Pappajack Bhd 48.10 -0.020 0.520 0.00 347.4

Permaju Industries Bhd 46.90 0.005 0.095 58.33 183

Pasukhas Group Bhd 43.40 0.000 0.020 -20.00 37.7

Widad Group Bhd 41.40 0.000 0.365 0.00 1004.7

Tanco Holdings Bhd 40.90 -0.030 0.320 33.33 556.6

Vizione Holdings Bhd 40.90 0.005 0.100 25.00 204.6 World equity indices

South Malaysia Industries 37.60 0.010 0.335 67.50 70.3

TECHNA-X Bhd 37.50 0.005 0.110 46.67 242.2 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%)
Bumi Armada Bhd 37.30 -0.015 0.430 -8.51 2540 DOW JONES 34,911.20 499.51 1.45 (%)
INDONESIA 7,227.36 28.13 0.39
Iris Corp Bhd 35.80 0.010 0.180 0.00 587.3

CIMB Group Holdings Bhd 32.40 0.060 5.090 -6.61 52,027.2 S&P 500 4,462.21 70.52 1.61 JAPAN 27,217.85 232.76 0.86

ATA IMS Bhd 31.40 0.010 0.465 -23.77 559.3 NASDAQ 100 14,210.26 299.50 2.15 KOREA 2,718.69 -0.20 -0.01

Vortex Consolidated Bhd 31.00 0.005 0.195 200.00 209.2 FTSE 100 7,634.83 33.55 0.44 PHILIPPINES 7,142.42 104.68 1.49

Focus Dynamics Group Bhd 28.4 0.01 0.045 12.5 286.7 AUSTRALIA 7,569.23 4.02 0.05 SINGAPORE 3,335.32 28.19 0.85

Dagang NeXchange Bhd 28 0.02 1.05 38.16 3313.5 CHINA 3,151.05 -42.98 -1.35 TAIWAN 17,148.88 155.48 0.91

Public Bank Bhd 27.6 0.02 4.65 11.78 90259.7 HONG KONG 20,944.67 -83.09 -0.40 THAILAND 1,680.35 4.73 0.28

Key Alliance Group Bhd 26.7 0 0.01 -33.33 36.8 INDIA 57,037.50 574.35 1.02 VIETNAM 1,384.72 -21.73 -1.55

Data as compiled on Apr 20, 2022 Source: Bloomberg Data as compiled on Apr 20, 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)

Scomi Energy Services Bhd 0.035 40.00 130.7 -36.36 16.4 Compugates Holdings BHd 0.010 -33.33 210 -33.33 45.8

Focus Dynamics Group Bhd 0.045 28.57 28418.5 12.5 286.7 MNC Wireless Bhd 0.025 -28.57 227,779.9 66.67 57.2

Xidelang Holdings Ltd 0.035 16.67 1521 0 74.1 Metronic Global Bhd 0.015 -25.00 198.4 -25.00 32.5

Sanichi Technology Bhd 0.035 16.67 1156.5 40 49.1 Top Builders Capital Bhd 0.030 -14.29 2,758.6 -14.29 21.2

AE Multi Holdings Bhd 0.035 16.67 1.3 16.67 75.7 Ageson Bhd 0.290 -12.12 2,147.0 -51.67 30.1

Citra Nusa Holdings Bhd 0.080 14.29 5596 6.67 57.6 Cheetah Holdings Bhd 0.195 -11.36 9,155.8 77.27 94.8

XOX Technology Bhd 0.045 12.50 194.4 -10 40.2 Sapura Energy Bhd 0.040 -11.11 26,037.9 -20.00 639.2

S&F Capital Bhd 0.095 11.76 642.4 5.56 52.3 Ireka Corp Bhd 0.520 -10.34 1,311.7 -32.03 118.4

MQ Technology Bhd 0.050 11.11 5804.1 0 44.7 Toyo Ventures Holdings Bhd 0.585 -10.00 674.2 -58.51 62.6

Barakah Offshore Petroleum 0.050 11.11 974 -37.5 50.1 Country View Bhd 0.960 -9.43 7 -4.00 96

Subur Tiasa Holdings Bhd 2.420 10.00 1891.9 130.48 455.7 Malpac Holdings BHD 1.180 -9.23 65.2 13.46 88.5

Aneka Jaringan Holdings Bhd 0.220 10.00 1019.6 10 118.4 Khee San BHD 0.155 -8.82 673.2 10.71 21.3

TPC Plus Bhd 0.220 10.00 9.9 15.79 67.8 Tanco Holdings Bhd 0.320 -8.57 40,903.4 33.33 556.6

Meridian Bhd 0.060 9.09 3932.4 -7.69 54.3 Reach Energy Bhd 0.055 -8.33 193.7 -8.33 60.3

Malayan United Industries Bhd 0.060 9.09 888.4 -14.29 183 Kim Hin Industry Bhd 0.720 -7.69 0.1 -17.24 101

Iqzan Holding Bhd 0.060 9.09 597.8 20 13.3 Pasdec Holdings Bhd 0.320 -7.25 50.5 -8.57 128.1

Sarawak Cable Bhd 0.185 8.82 1549.1 -11.9 73.8 Key Asic Bhd 0.070 -6.67 1,460.0 0.00 95.4

Hap Seng Plantations Holdings 3.240 8.36 3666.1 64.47 2591 MMAG Holdings Bhd 0.070 -6.67 375.0 -6.67 91.9

OCR Group Bhd 0.13 8.33 14967 -10.34 115.4 Maxim Global Bhd 0.215 -6.52 16.0 -8.51 269.3

Fast Energy Holdings Bhd 0.065 8.33 992.6 -31.58 43.5 OCB Bhd 0.820 -6.29 3.0 10.07 84.3

Data as compiled on Apr 20, 2022 Source: Bloomberg Data as compiled on Apr 20, 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 28.02 1.12 5042.4 28.65 30209.9 Fraser & Neave Holdings Bhd 22.08 -0.72 389.70 -10.75 8098.5

Batu Kawan Bhd 27.48 0.76 28.4 21.06 10820.1 Ajinomoto Malaysia Bhd 14.50 -0.26 2.7 -5.84 881.6

Petronas Dagangan Bhd 21.90 0.700 305.6 6.31 21756.6 Telekom Malaysia Bhd 4.83 -0.17 3336.0 -12.18 18227.0

PMB Technology Bhd 18.94 0.440 247.3 54.23 4434.6 Malpac Holdings BHD 1.18 -0.12 65.2 13.46 88.5

United Plantations BHD 16.50 0.320 898.1 18.88 6819.5 Country View Bhd 0.96 -0.10 7.0 -4.00 96.0

Sarawak Oil Palms Bhd 6.56 0.260 1,521.3 87.97 3781.3 Petronas Chemicals Group 10.30 -0.10 14183.4 15.47 82400.0

Hap Seng Plantations Holdings 3.24 0.250 3666.1 64.47 2591.0 Advanced Packaging 2.71 -0.09 11.8 4.23 52.6

Subur Tiasa Holdings Bhd 2.42 0.220 1891.9 130.48 455.7 Rapid Synergy Bhd 11.28 -0.08 26.3 13.37 1205.8

Greatech Technology Bhd 4.00 0.210 5080.1 -40.56 5008.5 Toyo Ventures Holdings Bhd 0.59 -0.07 674.2 -58.51 62.6

Chin Hin Group Bhd 3.48 0.210 770.6 33.33 3078.8 Ireka Corp Bhd 0.52 -0.06 1311.7 -32.03 118.4

MISC Bhd 7.8 0.200 4477.3 10.64 34817.2 LPI Capital Bhd 13.88 -0.06 102.1 -1.28 5529.6

Hong Leong Financial Group 19.2 0.200 176.6 10.73 21988.7 MCE Holdings Bhd 1.09 -0.06 42.7 -17.42 61.2

Carlsberg Brewery Malaysia 21.38 0.200 133.5 6.47 6536.9 OCB Bhd 0.82 -0.06 3.0 10.07 84.3

Heineken Malaysia Bhd 23.76 0.200 76.2 14.01 7177.8 Seremban Engineering Bhd 1.23 -0.06 1 -2.38 98.0

Sime Darby Plantation Bhd 5.34 0.190 18020.6 42.02 36929.9 Kim Hin Industry Bhd 0.72 -0.06 0.1 -17.24 101.0

Genting Plantations Bhd 8.98 0.180 520.2 36.23 8056.8 Tomei Consolidated Bhd 1.1 -0.05 1042.4 20.22 152.5

D&O Green Technologies Bhd 4.16 0.160 3734.1 -29.49 5146.5 Solarvest Holdings Bhd 0.915 -0.04 12336.7 -26.21 610.8

Oriental Holdings BHD 6.9 0.16 156.8 31.43 4280.5 Kobay Technology BHD 3.64 -0.04 3159.3 -39.64 1180.0

Gamuda Bhd 3.75 0.15 4345.4 29.31 9577.2 Ageson Bhd 0.29 -0.04 2147 -51.67 30.1

Choo Bee Metal Industries Bhd 2.16 0.14 1111.1 15.51 282.4 Syarikat Takaful Malaysia 3.56 -0.04 336.3 -3.78 2974.8

Data as compiled on Apr 20, 2022 Source: Bloomberg Data as compiled on Apr 20, 2022 Source: Bloomberg