The EDGE - 25 May 2022

Social media stocks sink to erase
US$180 bil on snap warning p16

w e d n e s day, M AY 2 5 , 2 0 2 2 w w w. t h e e d g e m a r k e t s. c o m

Issue 382/2022

ceoMorningBrief

HOME: Serba Dinamik slapped with RM100 mil suit on default debt papers p6
Industry groups say cash trust issue made known to regulators p7

Radio broadcasting segment lifts Star Media to profitability in 1QFY22 p11
WORLD: Wall Street is buying Treasuries again in bet worst is over p16
India to limit sugar exports in risk to global food prices p19

Export ban on chicken
may pose threat to
poultry producers

Report on Page 5.

KNM to sell Borsig
at a loss for RM1 bil

Report on Page 4.

W E D N E S DAY, M AY 2 5 , 2 0 2 2 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 382/2022

CEOMorningBrief

WEDNESDAY MAY 25, 2022 2 THEEDGE CEO MORNING BRIEF

the edge ceo morning brief published by publisher + ceo . Ho Kay Tat
editor-in-chief . Kathy Fong
Read from desktop or mobile device. (266980-X) chief commercial officer . Sharon Teh
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HOME

KUALA LUMPUR (May 24): Malaysia Malaysia among Delta wave last summer, and gross do-
will be among the economies that win big winners from mestic product contraction in the second
big from high commodity prices and will high commodity and third quarters.
pay less of a price on the inflation side prices — Moody’s
as it exports several times its domestic “Given that improvement in the labour
production, according to a Moody’s An- Analytics market tends to lag that of the broader
alytics report. economy, it is not unreasonable to as-
Bernama sume that labour markets are in less than
It highlighted that Malaysia, Colom- solid shape.”
bia, Indonesia and Saudi Arabia are tion, with bank governors in the Philip-
among the few economies that would pines and Malaysia raising rates. Indo- Rogers said what this all means is that
benefit from high commodity prices. nesia and Thailand will be next.” the best the emerging world can hope for
this year is a growth recession.
“For Colombia and Saudi Arabia, this Rogers said central bank surveys show
is crude oil. For Indonesia and Malaysia, inflation expectations are still on the rise, That is, economies will grow, but at
this is palm oil, the price of which has which could pose a problem if consum- rates so meagre that labour markets cease
surged following severe global shortages ers begin to factor price increases into to improve or go into reverse.
of Russia- and Ukraine-produced sun- demands for higher wages — something
flower oil,” senior economist Jesse Rog- that is not as yet widespread, in large part While emerging economies are less re-
ers said in an analysis titled “Emerging as labour markets remain weak. liant on consumer spending than their
Market View: The Growth Recession”. counterparts in the advanced world, the
The situation is likely worse in emerg- analysis said that on average, consumers
He said across the rest of the emerging ing Asia, the senior economist opined. make up a larger part of the economies
world, inflation is pushing higher, and than they used to, and they are growing
central banks are not going to give up While there is a general lack of timely in importance.
until it is tamed. labour market statistics, he said emerging
Asian economies were hit harder by the Even if central banks manage to tame
“Monetary policy in most of Latin inflation — whether because supply-chain
America is now in restrictive territory. and conflict-related disruptions ease up
And even in Southeast Asia, where in- or because central bankers squeeze it
flation is a relative oddity, higher prices out of the economy by force — the best
are sprouting. emerging markets can hope for is mod-
est growth with little momentum in jobs,
“Central banks have snapped into ac- it added.

KUALA LUMPUR (May 24): Malaysia's Malaysia’s in Davos, Switzerland from May 22-26.
economy is heading towards the right di- economy in right Tengku Zafrul noted that Malaysia’s un-
rection despite the challenging environ-
ment, especially with the expectation of direction, says employment rate, which peaked at 5.3%
a higher inflation rate, Finance Minister Tengku Zafrul (in May 2020), decreased to 4.1% last
Tengku Datuk Seri Zafrul Abdul Aziz said. month.
Bernama
He said however, with the strong gross Tengku Zafrul said Malaysia faced vari-
domestic product (GDP) growth of 5.0% can have a subsidy that's meant for all, but ous challenges within the region, including
in the first quarter of 2022, which was for the vulnerable groups, which I think geopolitics that have affected the supply
above expectation, the inflation remained they still need us,” he said in an interview chain, as well as the lockdowns to curb
comparative low. on CNBC on Tuesday (May 24). Covid-19 imposed by China, Malaysia's
biggest trading partner.
“We have increased the subsidies for The interview was held in conjunction
petrol, some of the foods, goods, and es- with his attendance at theWorld Econom- “However, as Malaysia is a net exporter
sentials, hence, it has helped the inflation ic Forum (WEF) Annual Meeting 2022 of commodities, this will then enable us to
remain quite low for Malaysia. Inflation cushion some of those impact,” he added.
in Malaysia last month recorded 2.2%…
So that's still good. He said the government will continue
its fiscal expansion policy with the extra
“What we need to focus on now is to be revenue received (as net exporter of com-
more targeted in subsidies. I don't think we modities) to cushion the impact on the
vulnerable groups.

WEDNESDAY MAY 25, 2022 3 THEEDGE CEO MORNING BRIEF

WEDNESDAY MAY 25, 2022 4 THEEDGE CEO MORNING BRIEF

HOME

KNM to sell Borsig
at a loss for RM1 bil

BY HAILEY CHUNG & ADAM AZIZ
theedgemarkets.com

KUALA LUMPUR (May 24): KNM UOB Kay Hian Securities (M) Sdn ing, 72%-owned 200,000 litres-per-day
Group Bhd has sold its entire stake in Bhd has been appointed as the principal bio-ethanol plant in Thailand currently
Borsig GmbH, a German-based pro- adviser for the proposed disposal. being expanded, and a waste-to-energy
cess equipment manufacturer, to GPR (WTE) plant in the UK currently under
Siebzigste Verwaltungsgesellschaft mbH Borsig sale not what KNM originally construction, previously slated to have a
(GSV) for €220.8 million (RM1.03 bil- planned capacity of 36MW.
lion), but is expected to make an esti- KNM’s proposed sale of Borsig came as
mated loss of RM490.55 million from a surprise to the market, with the counter As recently as December 2021, KNM
the disposal. down 3.5 sen or 17.95% soon after it re- was still considering to keep a stake in
sumed trading. Borsig and list the company, and instead
In a bourse filing on Tuesday (May sell both the bio-ethanol plant and the
24), the group said its wholly-owned in- The sale came despite the ongoing ne- WTE plant assets to settle the payments
direct subsidiary Deutsche KNM GmbH gotiations between KNM and its guar- linked to the Thai bonds.
entered into a conditional sale, purchase antor, the Asia Development Banks’
and transfer agreement with GSV on Credit Guarantee and Investment Fa- In its December filing, KNM said it is
Monday. cility (CGIF), for the payment of its 2.78 also seeking financing in Germany, and
billion baht Thai bonds (RM352.57 mil- is proposing to inject subsidiaries into
KNM is a multinational group with lion) which KNM defaulted on in No- a special purpose acquisition company
core businesses in project management, vember 2021. (SPAC) in exchange for cash and a stake
engineering, manufacturing and con- in the SPAC by end-3Q22 — both to
struction for the renewable energy, pow- Further, the €220.8 million (RM1.03 partly repay its borrowings.
er, utilities, refining and petrochemical billion) sale is well below the price tag
industries. of €300 million (RM1.47 billion) sought In January this year, KNM also an-
by KNM’s previous board. Recall that nounced the proposed listing of its sub-
GSV is a special investment vehicle KNM bought Borsig for €350 million sidiaries FBM Hudson Italiana SpA and
wholly-owned by Vorsprung Industries or RM1.67 billion in 2008. FBM-KNM FZCO in the Singapore
SCSp, incorporated for the acquisition Stock Exchange’s Catalist Board.
of Borsig. While KNM said the sale would also
facilitate its business strategy of “grow- KNM turned into the red in the finan-
The price tag represents an enterprise ing its renewable energy business”, the cial year ended Dec 31, 2021 (FY21) with
value (EV) over earnings before inter- absence of Borsig’s income contribution net loss of RM601.48 million or 18.3 sen
est, taxes, depreciation and amortisation — it generates pre-tax profit of around per share from net profit of RM64.2 million
(ebitda) of 6.63 times, compared with RM100 million annually — would leave or 2.39 sen per share a year ago, following
peer EV/ebitda valuation of between 2.85 the group in a difficult position to turn impairment loss on its ethanol plant un-
times and 7.73 times, with an average of around, an analyst said. der construction, impairment of goodwill
5.29 times, the filing said. and additional costs from project delays.
“Borsig was the cash cow that KNM
The proposed disposal of 15 shares, needed to subsidise all the other bad ap- FY21 revenue fell 22.77% to RM1.02
representing 100% equity interest, in ples,” the analyst said. “Now they sell billion, from RM1.32 billion.The group
Borsig to GSV may result in an estimat- the good apple but are hanging on to has yet to release its results for 1QFY22.
ed loss of approximately RM490.55 mil- the bad ones.”
lion to KNM, which includes a portion of At 3.48pm, KNM shares were down
goodwill of RM355.74 million impaired KNM’s has two renewable ener- 3.5 sen or 17.95% at 16 sen, giving
in December last year. gy businesses, namely the loss-mak- the group a market capitalisation of
RM588.52 million.
KNM, however, believes the trans-
action is a timely cash injection to im-
prove the group’s financial position. Upon
receipt of the proceeds from this deal,
KNM plans to repay its bank borrowings
amounting to RM874.23 million, reduc-
ing total bank borrowings to RM391.53
million, from RM1.28 billion.

This will result in annual interest sav-
ings of RM85.02 million, KNM said.

KNM is also allocating RM71.98 mil-
lion for working capital requirements for
renewable energy projects of the group
and another RM15.97 million for the es-
timated expenses on the proposed dis-
posal that may be completed in the third
quarter of 2022.

WEDNESDAY MAY 25, 2022 5 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 24):The recent Export ban on The proposal of the export ban is agreed
government’s decision to impose an export chicken may pose by the Cabinet as part of short-term meas-
ban on chicken is expected to pose a threat threat to poultry ures for the ongoing chicken shortage issue.
towards poultry producers’ profitability.
producers Currently, the ceiling price of stand-
An industry expert who spoke to The ard chicken has been set at RM8.90 per
Edge on the condition of anonymity said BY SULHI KHALID kilogramme, with a subsidy of RM729.43
that some of the poultry producers al- theedgemarkets.com million provided under the Keluarga Ma-
ready have existing contracts with parties laysia Price Control Scheme (SKHKM)
in their export markets and the decision REUTERS and implemented on Feb 5.
to ban export will affect the producers’
bottom line. Minister Datuk Seri Ismail Sabri Yaakob Meanwhile, the industry expert also
announced that the government will put claimed that the process of applying for
“What the government is doing is a halt on the exports of 3.6 million chick- the subsidy is tedious.
a short-term measure. In the long run, ens a month from June 1, and investigate
should the government impose the export allegations of cartel pricing. “Some of the poultry producers com-
ban, it may affect our export level to other plained that they have not received any
countries. form of subsidy from the government, even
after months of they having applied for
“For instance, at the moment, we ex- subsidy,” he shared.
port (chicken) to Singapore, which ac-
counts for about 10% to 15% of (the The government recently revealed
country’s) total production and if we im- that there are several large companies
pose this export ban, Singapore might shift who are not interested in applying for
to source chicken from other countries in the subsidies and want the government
the long run. to allow chicken prices to be determined
by the market.
“Some of the local poultry players also
will be losing a lot of money, as they al- The government also said that so far,
ready have signed contracts with parties only RM50 million in subsidies have been
from other countries,” he revealed. paid to breeders, most of whom own small
companies.
The industry expert also argued that the Read also: Chicken export ban to be
government needs to address the pricing reviewed once domestic supply stabilises,
issue urgently, as poultry producers are al- says Ronald Click here
ready suffering from high production costs.

Earlier on Monday (May 23), Prime

(May 24): Malaysia, the world’s second-big- Malaysia rules out sugar shipments, and Serbia and Kazakhstan
gest palm oil producer, has ruled out cur- curbs on cooking have imposed quotas on grain shipments.
tailing cooking oil exports as it has enough
supplies to meet local demand and will in- oil exports, Elevated global commodity prices,
stead focus on targeting subsidies to ensure minister says which were initially expected to ease in the
it benefits the most needy consumers. third quarter of the year, will likely remain
BY ANURADHA RAGHU high toward the year-end or even into 2023
“So far, we have no worries because we Bloomberg before normalising, Zuraida said.
definitely have no shortages at all,” Plan-
tation Industries and Commodities Min- BLOOMBERG That’s problematic for Malaysia, which
ister Datuk Zuraida Kamaruddin said in is a net food importer and exposed to glob-
an interview Tuesday (May 24). “Most of Zuraida: So far, we have no worries because al shocks in the food supply chain.
the time we export more than half of what we definitely have no shortages at all.
we produce, and we still have an excess Prime Minister Datuk Seri Ismail Sabri
to export,” she said from her office in the temporarily banned palm oil exports, be- Yaakob on Monday announced that the
administrative capital Putrajaya. fore replacing it with domestic sales quota country will halt exports of chickens from
after farmers protested the move. India has June, and investigate allegations of cartel
The nation aims to fill the gap in the curbed wheat imports and is set to restrict pricing, as the nation seeks to secure its
edible oil market caused by the Ukraine own supply.The move is likely to hit Sin-
war, as well as Indonesia’s export curbs on gapore, which sources a third of its supply
palm oil, Zuraida said. She forecasts Ma- from Malaysia, as well asThailand, Brunei,
laysia’s palm oil production may rebound Japan and Hong Kong.
to 23 million to 25 million tonnes in 2022,
versus last year’s 18.1 million tonnes, as The measure will be temporary until
pandemic-driven labour shortages ease and prices and production of chicken stabilises,
foreign workers are allowed back in estates, Agriculture and Food Industries Minis-
while smallholders boost productivity to ter Datuk Seri Dr Ronald Kiandee said
capitalise on high prices. at the sidelines of a ministry event Tues-
day. Both Kiandee and Zuraida said the
Around the world, governments are tak- government is not currently considering
ing to food protectionism to secure local export restrictions on other agricultural
supplies and battle rising food costs, stoked commodities.
in part by supply shocks caused by the war Click here for the full story
in Ukraine.Top shipper Indonesia recently

WEDNESDAY MAY 25, 2022 6 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 24): Serba Di- Serba Dinamik ing and repayment schedule plan, and that
namik Holdings Bhd has been slapped with slapped with it would submit the plan once it had been
yet another suit, this time from Malaysian suit seeking completed.
Trustees Bhd, which is the trustee of Serba repayment of
Dinamik’s RM100 million Islamic Com- “However, ARIM and/or the plaintiff
mercial Papers (ICP) that the company RM100 mil after (Malaysian Trustees) did not receive any
has defaulted on. defaulting on response and/or proposed restructuring
debt papers and repayment schedule plan from the
In a civil suit filed at the High Court defendant at any time since and this con-
on April 29, Malaysian Trustees is seek- BY ADAM AZIZ tinues to-date. There have been no fur-
ing a declaration that a dissolution event theedgemarkets.com ther communications on these matters
has occurred on the ICP, together with an between the parties after Jan 17, 2022,”
order to compel Serba Dinamik to pay the According to the suit, Serba Dinamik the suit read.
outstanding ICP amount of RM100 mil- sought a waiver of cross-default on the
lion, with compensation for late payment. ICP from ARIM following its default on The MalaysianTrustees said in the suit
a separate US$222.22 million sukuk. that several events had amounted to a dis-
Malaysian Trustees is also seeking to solution event under the ICP trust deed,
execute a sale agreement with Serba Di- ARIM agreed, on condition that Ser- namely Serba Dinamik’s triggering of the
namik to acquire from the beleaguered oil ba Dinamik provides a strategic plan and Practice Note 17 criteria, the events sur-
and gas outfit its entire beneficial interest in repayment schedule that is agreeable to rounding its false financial statements, and
the shariah-compliant business of Aman- both parties by Jan 27, 2022. the judicial management application by
ahraya Investment Management Sdn Bhd Serba Dinamik’s subsidiaries.
(ARIM), as part of the agreement under “On Jan 17, 2022, the defendant (Serba
the dissolution of the ICP. Dinamik) informed ARIM that the group The trustees had also issued a letter of
was finalising a comprehensive restructur- demand to Serba Dinamik, but to no avail.
ARIM sole holder of Serba Dinamik’s
RM100 million ICP After filing the suit, the MalaysianTrus-
The court papers did not provide details tees had on May 23 applied to transfer
about the shariah-compliant business men- the case to the Commercial Division of
tioned. ARIM, which is the sole holder of the High Court.
Serba Dinamik’s RM100 million ICP, is
wholly-owned by Amanah Raya Bhd. Shares of Serba Dinamik slipped half
a sen or 4.55% to 10 sen at the time of
writing, giving it a market capitalisation
of RM377.38 million.

wednesDAy MAY 25, 2022 7 TheEdge CEO morning brief

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Industry groups The MFPC noted that it has raised the MyCC
say cash trust cash trust issue with both the SC and BNM, investigation
issue made and has been in active communications with will cover all
known to the regulator and the central bank through
regulators the IPG. players in
the poultry
by Izzul Ikram Likewise, the Financial Planning Associa- industry —
theedgemarkets.com tion of Malaysia (FPAM) told The Edge that
it would not be participating in the meeting minister
KUALA LUMPUR (May 24):The Malay- with Lim, as it has already brought the cash
sian Financial Planning Council (MFPC) trust issue to the attention of the regulators Bernama
said that it has no intention to raise its grous- concerned.
es about certain cash trusts to DAP National PUTRAJAYA (May 24): The Ma-
Public Complaints Bureau chairman and The Association of Financial Advisers laysia Competition Commission’s
member of parliament for Kepong, Lim Lip (AFA), MFPC, Malaysian Financial Plan- (MyCC) investigation into allega-
Eng, as it had already brought the issue to ning and Advisors Association (MFPAA) tions of anti-competitive conduct in
the Securities Commission Malaysia (SC) and the FPAM, through the SC, jointly the country’s poultry industry is ex-
and Bank Negara Malaysia (BNM). formed the IPG. pected to be completed by the end of
June, said DomesticTrade and Con-
It was previously reported by theedge- According to the MFPC, the key objec- sumers Affairs Minister Datuk Seri
markets.com on Tuesday (May 24) that tives of the IPG are: Alexander Nanta Linggi.
members of the Investor Protection Group
(IPG) were to bring forward their qualms To centralize the assessment of doubtful He said MyCC has initiated in-
on certain cash trusts to Lim in a meeting activities within the industry, so as to guide vestigations into all poultry industry
to be held onWednesday (May 25). LFPs on the treatment of such activities; players throughout Malaysia covering
• To update SC with prevailing doubtful upstream and downstream activities.
However, in response to the report, the
MFPC — a member of the IPG — said financial services activities/products and He said MyCC also established
while it was invited to the meeting, the unlicensed persons, with some recom- a special team in early February to
pre-scheduled meeting has been cancelled. mended action items, if possible; investigate allegations of anti-com-
• To follow up with regulators and relevant petitive conduct including anti-com-
The council added that it had no inten- stakeholders on the status of action taken; petitive agreements and/or abuse of
tions to raise its “grouses” about certain cash • Where possible, to work with Industry dominant position in the market that
trusts in the meeting. Associations to distribute information/ could cause an increase in prices of
warn the public about the doubtful ac- goods in the market.
“We wish to highlight that the Council, tivities/products; and
together with the other financial planning • To seek guidance from, and work with “Findings from the investigation
associations (IPG) are invitees to a meeting SC to educate the public on doubtful fi- will be tabled to the members of the
with Lim on May 25, 2022. nancial services activities and unlicensed commission which will act as a qua-
persons. si-judicial body that has the power
“We wish to categorically state that we “Through this group, all members of the to decide whether there is a violation
have no intention to bring out ‘grouses’ associations will be made aware of the addi- of Section 4 of the Competition Act
about certain cash trusts as cited by your tion of names of companies on the Investor 2010,” he said in a statement here
article.We do not know how and where this Alert List and where possible, for any mem- on Tuesday.
information originated from; nonetheless, ber of the association to provide immediate
to correspond with your article published feedback to this group, so that we could alert Nanta said if it is found that the
[on Tuesday], the pre-scheduled meeting the authorities promptly,” it added. cartel’s allegations have a strong ba-
has been cancelled,” the MFPC said in an The MFPC said that via this industry in- sis, the MyCC is expected to issue a
email to The Edge. itiative, the IPG aims to provide an avenue proposed decision under Section 36
for members to bring all potential fraudulent of the same Act and the parties being
investment schemes to the attention of the investigated will be given the oppor-
regulators, in order to avoid members of the tunity to defend themselves through
public from falling prey to such fraudulent written and verbal representation ses-
investments. sions before the commission makes a
final decision.

He said if a violation of the section
is found, they could be fined up to
10% of the sale of products or services
for as long as the violation occurred.
Click here for the full story

WEDNESDAY MAY 25, 2022 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 24):The plan- Plantation and to pose challenges in the current financial
tations and manufacturing segments have manufacturing year. Nevertheless, the group expects the
lifted Kuala Lumpur Kepong Bhd’s (KLK) segment’s performance to be satisfactory
net profit for the second quarter ended segments lift supported by robust demand with the re-
March 31, 2022 (2QFY22) to RM546.57 KLK’s 2Q earnings covery in the global economy.
million, up 11.44% from RM490.44 mil-
lion a year earlier. 11.44% y-o-y to “Overall, the group expects a good finan-
RM546.57 mil cial performance for the year ending Sept
Earnings per share increased to 50.7 sen 30, 2022,” it added.
from 45.5 sen in the previous year. BY SYAFIQAH SALIM
theedgemarkets.com In a separate statement, KLK chief ex-
A bourse filing showed that KLK’s reve- ecutive officer Tan Sri Lee Oi Hian said:
nue in 2QFY22 climbed 41.56% to RM6.38 from the Russia-Ukraine conflict. “Our results in this second quarter put us
billion from RM4.51 billion in 2QFY21. “CPO price is also expected to remain high on the right path towards an encouraging
group performance for FY22.The opening
The company also declared an interim div- in the near term.With the strong CPO price of the economy bodes well for industries and
idend of 20 sen per share, to be paid on Aug 2. and intensified mechanisation efforts to al- businesses in Malaysia and globally. While
leviate the labour shortage, we expect profit the overall first half results for FY22 saw sig-
KLK’s plantations segment’s 2QFY22 rev- from the plantation segment to improve in nificant improvements, we remain vigilant
enue grew 65.4% to RM423.3 million from the second half of the financial year. of escalating costs of our CPO production
RM255.87 million, driven by higher crude with sizeable increase in input prices.
palm oil (CPO) and palm kernel selling prices “For the manufacturing segment, the hike
and profit contribution from newly acquired in raw material prices and energy cost, cou- “The ongoing labour crunch in Malaysia
subsidiaries. pled with persistent logistic issues, continue continues to be challenging. Losses continue
due to worker shortage. On a macro scale,
The manufacturing segment’s revenue, this leads to huge avoidable loss of revenue
meanwhile, jumped 72.6% to RM377.89 for Malaysia. KLK hopes that the govern-
million from RM218.97 million on higher ment will urgently expedite the inflow of
contributions from oleochemical division and migrant workers with the upcoming peak
refineries as well as kernel crushing operations. production period.

For the six months ended March 31 “As a group, KLK will continuously seek
(6MFY22), KLK’s net profit grew 35.13% for ways to improve our operating efficien-
year-on-year to RM1.15 billion from cies in order to mitigate the overall rising
RM847.85 million, while revenue was production costs.”
49.98% higher at RM13.21 billion against
RM8.81 billion. At the closing bell onTuesday, KLK shares
settled at RM25.90,down by 1.97% or 52 sen.
On prospects, KLK said in its filing to
Bursa CPO price continued to rally due At RM25.90, KLK has a market capital-
to tight edible oil supplies worldwide ex- isation of RM28 billion.
acerbated by supply disruptions arising

KUALA LUMPUR (May 24): Sime Dar- Sime Darby sustain our business in the coming quarters.
by Bhd’s net profit in the third quarter end- 3Q net profit “Despite the challenges inherent in the
ed March 31, 2022 (3QFY22) declined by declines 18.67% on
18.67% to RM244 million from RM300 Covid-19 related business environment today, Sime Darby
million a year ago as the group’s core busi- disruptions continues to be supported by a solid bal-
nesses of industrial and motors were im- ance sheet, broad geographical footprint,
pacted by Covid-19 related disruptions in BY SULHI KHALID and strong brands.
both China and Australasia. theedgemarkets.com
“We remain committed to our long-
Earnings per share fell to 3.6 sen from (2QFY22) while revenue increased mar- term growth strategy and will continue to
4.4 sen previously. ginally by 0.34% from RM10.54 billion capitalise on opportunities to rationalise
in 2QFY22. our portfolio and double our efforts to
A Bursa Malaysia filing on Tuesday strengthen our core businesses of indus-
(May 24) showed that quarterly revenue Commenting on the group’s financial trial and motors,” he said.
slid by 4.07% to RM10.57 billion com- performance, Sime Darby group CEO Da-
pared to RM11.02 billion a year prior. tuk Jeffri Salim Davidson said the group At noon break, shares in Sime Dar-
is able to deliver resilient results despite by were one sen or 0.44% higher to
For the full nine-month period, net increasingly tough market conditions. RM2.29, giving it a market capitalisation
profit tumbled by 32.04% to RM825 mil- of RM15.59 billion.
lion from RM1.21 billion a year ago in the “Motors Malaysia was a standout per- More corporate results:
absence of a RM272 million gain from its former as profits more than tripled from high- TSH’s 1Q profit up six times over on
Tesco Malaysia disposal, Singapore GST er vehicle margins and higher profits from stronger palm product prices, disposal
refund and a RM33 million net reversal assembly operations.The reopening of econ- gain Click here
of impairment from the sale of its stake in omies and bullish commodity prices should
Eastern & Oriental Bhd. Batu Kawan 2Q net profit up 21%
on plantation and manufacturing
Revenue, on the other hand, dipped segments strong showing Click here
4.1% to RM31.78 billion from RM33.14
billion a year ago.

On a quarterly basis, net profit came
in lower by 29.29% from RM345 mil-
lion in the immediate preceding quarter

WEDNESDAY MAY 25, 2022 9 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (May 24): Logis- GDEX falls benefit from the post-Covid-19 economic re-
tics and express carrier provider GDEX into the red for covery, and we are already seeing positive signs
Bhd posted a net loss of RM1.9 million the first time operationally as business and consumer ac-
in the first quarter ended March 31, 2022 ever amid stiff tivities inVietnam and Indonesia have started
(1QFY22), the first time since it was listed competitions to recover significantly,” according toTeong.
in 2005, amid tough competitions at home
and higher operating costs. in 1QFY22 With international borders now reopened,
Teong said the group is expanding its efforts
The group reported a 13.16% decline BY SYAFIQAH SALIM to pursue enhancements across regional op-
in revenue during the quarter to RM91.89 theedgemarkets.com erations, to generate greater resilience and
million, compared with RM105.81 million synergies for the enlarged group.
a year ago, amid lower contributions from its operations in Vietnam and Indonesia
its courier services segment. seeing better performances on the back of “We aim to become a stronger and
recovering economies. larger player in Southeast Asia, driven by
Geographically, Malaysia and Vietnam our GDEX 2.0 strategy, which will pave
collectively made up the majority, or 99.6%, The company registered RM15.1 mil- the way for our long term and sustainable
of GDEX’s revenue,while Singapore contrib- lion in revenue from itsVietnam operations growth,” he said.
uted the balance 0.4%, according to GDEX. in 1QFY22, driven by higher express de-
liveries and warehousing activities of its GDEX entered theVietnam market in
GDEX managing director Teong Teck subsidiary Noi Bai Express and Trading 2019 with a 50% stake in Netco, a prom-
Lean said in a statement accompanying the Joint Stock Co (Netco). inent home-grown express services pro-
results that the group continues to face head- vider which serves leading multinational
winds in Malaysia due to predatory pricing. “Additionally, share of profit from asso- and local companies.
ciates, mainly contributed by the group’s
“The competitive pricing environment Indonesia operations under PT Satria An- Meanwhile, the group’s presence in In-
is destructive, with some players offering taran PrimaTbk (SAP Express), recorded donesia started in 2016 with a 44.5% stake
free delivery service to grow their volume. a year-on-year increase of 18.9% to RM1 in SAP Express, a fast-growing logistics
However, this practice seems to be slow- million in 1QFY22 on improved activity services player with presence across 7,200
ing down and we anticipate that shipment and delivery volume in Indonesia. locations in the country.
volume will gradually return.
“Our regional investments are poised to The group unveiled its GDEX 2.0 strat-
“In this regard, we are actively engaging egy in April 2022, which aims to build a
with key industry stakeholders to bring platform-based ecosystem that will propel
improved industry resilience. its regional growth. Backed by innovative
digital platforms and solutions, the ecosys-
“Our efforts include proposing [an] in- tem will offer enhanced experience to small-,
dustry framework that promotes healthy medium-sized and multinational companies.
competition and supports the profitability
of logistics and courier companies.We believe In addition, it also intends to expand
closer government-industry cooperation will its business and investment portfolio via
bring about greater long-term sustainability mergers and acquisitions as well as part-
of the industry,”Teong added in a statement. nerships with synergistic companies.

Eyeing growth in robust Southeast OnTuesday, GDEX shares were down
Asia market half a sen or 2.63% to close at 18.5 sen,
GDEX said the group is optimistic about with a market capitalisation of RM1.04
growth prospects in Southeast Asia, with billion.The counter has tumbled 33.93%
from 28 sen on Jan 3.

KUALA LUMPUR (May 24): Malakoff Malakoff ’s Malakoff managing director/chief ex-
Corp Bhd’s net profit for the first quarter 1Q net profit down ecutive officer Anwar Syahrin Abdul Ajib
ended March 31, 2022 (1QFY22) fell by 16% y-o-y, despite said the group remains optimistic of its
15.82% year-on-year (y-o-y) to RM50.88 performance for the rest of the year, as ag-
million, from RM60.44 million. higher revenue gressive expansion in the renewable energy
space is already in the pipeline, together
The lower net profit was due to low- BY SYAFIQAH SALIM with focused growth in the environmental
er contribution from Tanjung Bin Ener- theedgemarkets.com solutions’ non-concession segment.
gy Sdn Bhd (TBE), resulting from the Click here for the full story
plant outage caused by low-pressure tur- In a separate statement, Malakoff said More corporate results:
bine blade failure, coupled with higher de- its overseas investments achieved a share of UMW’s 1Q profit jumps 27% as stronger
preciation charges, according to the com- profit totalling RM47.4 million, an increase demand lifts revenue Click here
pany’s filing with the bourse on Tuesday of 70.5% from RM27.8 million registered KLCCP Stapled declares eight sen
(May 24). in the same quarter in the previous finan- dividend as 1Q profit strengthens
cial year.This was primarily attributable to Click here
As a result, earnings per share decreased the Al-Hidd and Shuaibah International
to 1.04 sen, from 1.24 sen previously. Water and Power Plants in light of favour-
able gas margins and lower plant outages.
In contrast, its quarterly revenue grew
39.42% to RM1.88 billion, from RM1.35
billion. The increase in revenue was pri-
marily due to higher energy payments re-
corded fromTanjung Bin Power Sdn Bhd
andTBE, given the higher Applicable Coal
Price during the period under review.

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KUALA LUMPUR (May 24):The surge Promising ternational passenger traffic is starting to
in international passenger movements recovery outlook recover, with total traffic in the first four
at airports nationwide on the back of months of 2022 hitting 32% of the level
higher demand as borders reopen, with for aviation achieved in the same period in 2019.
airlines actively resuming international industry, says
flight routes, indicates promising pros- It said April 2022 international pas-
pects for the aviation industry to recover economist senger traffic improved to 14% of April
faster, an economist said. 2019 levels.
by Zairina Zainudin
Bank Islam Malaysia Bhd chief econ- Bernama “With April 2022 being the fasting
omist Mohd Afzanizam Abdul Rashid month and Malaysia axing pre- and post-
said total passenger traffic in the first two der reopened on April 1, compared with a flight Covid-19 testing from May 1, 2022,
months of this year grew substantially by 52% month-on-month growth in March. international passenger traffic ought to be
390% from the same period last year to even better,” it said.
5.29 million passengers. A total of 2.78 million passengers were
recorded in Malaysia for April, with do- Nevertheless, Mohd Afzanizam said
This was mainly underpinned by do- mestic passenger movements totalling business and maintenance costs could pose
mestic passenger traffic, which recorded a 2.13 million or 77%. a great challenge to industry players, es-
big jump of 420% to 4.74 million passen- pecially the airlines, in terms of how swift
gers, while international passengers rose MAHB said five airlines —VietJet Air, the recovery in profitability is going to be.
by 224% to 541,000 passengers during Scoot, AirAsia,Thai AirAsia and AirAsia
January to February this year. X — resumed 17 international routes He said higher jet fuel prices would
last month involving destinations such mean a need to hedge fuel prices, and
“In that sense, we can safely say that as Ho Chi Minh City, Hanoi, Singapore, hedging requires a cost too.
the industry is on track to record further Incheon, New Delhi, Bengaluru, Kolkata
improvement as restrictions on interna- and Chennai. In addition, rising inflation would mean
tional borders had been lifted in April … Malaysian travellers getting calculative with
the outlook for the aviation industry looks Meanwhile, Maybank Investment Bank their travelling plans, he noted.
encouraging,” he told Bernama. Bhd said in a note that the country’s in-
“Supply chain disruptions are real and
On Monday (May 23), Malaysia Air- this can affect various industries. Airlines
ports Holdings Bhd (MAHB) announced are obviously not immune to this.There-
that international traffic at its local network fore, demand is key to the success of air-
of airports increased by 53% after the bor- lines but there are other enabling factors
that can affect their overall performance,”
the economist added.

Malaysia Airlines the edge file photo
says ticket sales
grew over 100%
since Malaysia
reopened borders

by Chong Jin Hun
theedgemarkets.com

KUALA LUMPUR (May 24): Malaysia up demand,” Izham said. “Safety remains the top priority and
Airlines Bhd’s ticket sales have grown more While the gradual reopening of glob- measures have been taken to avoid the con-
than 100% since Malaysia reopened its bor- flict zone,” said Izham, who is also group
ders on April 1, 2022 in tandem with the al borders will accelerate air travel recov- chief executive officer of Malaysia Aviation
country’s transition to the Covid-19 en- ery, Malaysia Airlines is facing significant Group, which is the parent company of
demic status from pandemic earlier, mint headwinds from high fuel prices, accord- Malaysia Airlines.
reported onTuesday, quoting Malaysia Air- ing to him.
lines’ chief executive officer Izham Ismail. Malaysian sovereign wealth fund Khaz-
The current Russia-Ukraine conflict has anah Nasional Bhd owns Malaysia Airlines
“Since the government announced the also raised concerns for the global aviation via Malaysia Aviation Group.
reopening of Malaysia’s borders, we have industry, he said. Read also: Malaysia Airlines, Tabung Haji
seen a positive response from travellers sign haj charter flight agreement Click here
eager to resume their travels. Ticket sales “All companies within the group (Ma-
have been showing substantial growth [of] laysia Aviation Group) have taken imme-
more than 100%. diate steps to manage the impact of higher
fuel cost.
“We are currently looking at very en-
couraging advanced booking on Malaysia
Airlines with more than 80% load factor on
most flights. We are seeing a strong pent-

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KUALA LUMPUR (May 24): After five Radio market conditions to remain volatile, in
consecutive loss-making quarters, Star Me- broadcasting view of increasing inflation pressure, the
dia Group Bhd reported a net profit of segment lifts prolonged Ukraine crisis, and supply chain
RM2.52 million in the first quarter ended Star Media to disruptions.
March 31, 2022 (1QFY22) against a net profitability in
loss of RM14.1 million in 1QFY21, thanks “The group will continue its efforts in
to its radio broadcasting segment. 1QFY22 retaining and sustaining its investment in
its digital transformation initiatives and
The company posted earnings per share by Syafiqah Salim strategies with the various digitally-driven
of 0.35 sen versus a loss per share of 1.95 theedgemarkets.com products such as The Star Online, mStar
sen a year earlier. Revenue grew 22.27% and the newly launched BM news portal,
to RM52.1 million from RM42.61 million, Majoriti, which aims to further strengthen
its bourse filing showed. our market share in the Malay community.

According to Star Media, its radio broad- “The group will leverage on its exist-
casting segment generated a profit before tax ing assets to continuously look for var-
of RM2.2 million — compared to a loss of ious opportunities that generate syn-
RM720,000 in 1QFY21, as revenue rose to ergistic benefits and strengthen all our
RM8.5 million from RM6.31 million. existing products in the ever-changing
market environment to further boost the
Its print and digital segment also saw performance of the group,” the company
an improvement, with a profit before tax said on its prospects.
of RM650,000 — up from a loss before
tax of RM13.2 million previously — as Star Media shares declined 1.59% or
revenue grew 23.3%, mainly due to the re- half a sen to 31 sen atTuesday’s (May 24)
sumption of economic activities, which led close, giving the group a market capitali-
to an increase in advertisement bookings. sation of RM228.95 million.
More corporate results:
Its event and exhibition segment re- Carlsberg 1Q net profit up 38% to
corded a loss amounting to RM200,000 RM91.59 mil Click here
in 1QFY22, compared to a loss of
RM480,000 in the corresponding quarter. Tan Chong Motor sinks into red in 1Q;
“With better cost management and capi- declares 1.5 sen dividend Click here
talising on economies of scale, the group
managed to achieve a better performance
for this segment,” said Star Media.

Despite improving consumer sentiment
and business activities, the group expects

KUALA LUMPUR (May 24): Leong Hup Leong Hup EBITDA slipped 9.9% to RM100.74 mil-
International Bhd’s (LHI) net profit for 1Q net profit lion from RM111.75 million, as margins
the first quarter ended March 31, 2022 plummets 71% on were compressed due to the rapid rise in
(1QFY22) fell by 71.03% to RM20.38 higher input costs the cost of commodities as a result of the
million from RM70.33 million a year ago, Ukraine-Russia conflict.
dragged by elevated input costs of feed. of feed
In a separate statement, LHI executive
This was despite a 24.49% increase by Izzul Ikram director and group chief executive officer
in its quarterly revenue to RM2.09 bil- theedgemarkets.com Tan Sri LauTuang Nguang noted that the
lion from RM1.68 billion, supported by Ukraine-Russia war resulted in a rapid in-
its livestock and poultry-related products However, the segment’s earnings be- crease in the cost of commodities — es-
and feedmill segments’ improved revenue fore interest, taxes, depreciation and am- pecially corn and soybean meal used in
contributions. ortisation (EBITDA) decreased 63% to animal feed production.
RM34.85 million from RM92.24 million,
Its livestock and poultry-related prod- mainly due to margin compression as a “Despite strong demand as economic
ucts segment posted a revenue of RM1.15 result of elevated input costs of feed. activities in the region normalise, average
billion, up 25.9% versus RM915.16 mil- selling price increase lagged that of com-
lion a year earlier, mainly driven by strong- Meanwhile, its feedmill segment re- modity cost increase and the group expe-
er contributions fromVietnam, Indonesia ported a revenue of RM931.76 million, a rienced margin compressions,” he added.
and Malaysia. 22.9% increase from RM758.35 million
in 1QFY21, due to a higher average sell- Lau noted that the group has main-
“The higher revenue in Vietnam was ing price and sales volume in Indonesia tained growth and momentum despite the
primarily due to higher sales volume of and Malaysia. difficult operating environment, and will
broiler chickens. The increase in revenue continue to optimise cost control.
from Indonesia was from higher sales vol- Similarly, even though the segment
ume and average selling price of broiler achieved a revenue improvement, its LHI shares closed down two sen or
chickens, while Malaysia recorded a high- 3.81% at 50.5 sen on Tuesday (May 24),
er average selling price of eggs, as well as giving it a market capitalisation of RM1.83
higher revenue from its downstream busi- billion.
ness-to-consumer channel,” the integrated Read also: MOSTI to help farmers reduce
poultry, egg and livestock feed producer animal feed costs Click here
said.

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KUALA LUMPUR (May 24): Green Green Packet Green Packet Bhd
Packet Bhd’s trading volume spiked to a trading volume
record high at over 466 million shares on Vol (mil) Sen
Tuesday (May 24) from 21.92 million a spikes to 500 40
day earlier to become the most active coun- record high 35
ter on Bursa Malaysia while the share price 37 sen 30
of the digital solutions provider closed low- by Izzul Ikram 400 25
er as investors anticipated its first quarter theedgemarkets.com
financial report, which was issued after the 300
company’s annual general meeting (AGM). “[In quarterly terms] total revenue and
LAT (loss after tax) of the group for the 200 20
At 5pm on Tuesday, Green Packet’s current 1QFY22 were RM102.34 million 8 sen 15
trading volume had spiked to 466.29 mil- and RM19.98 million respectively as com-
lion shares, while its share price closed pared to the revenue and LAT of the group 100 10
down at eight sen after falling as much as for the preceding 4QFY21 of RM160.61
two sen or 21% to 7.5 sen. million and RM104.02 million respectively. 0 5
April 30, 2021 May 24, 2022
At eight sen, the company’s market “The LAT in current quarter was main-
capitalisation stood at about RM128 mil- ly due to fair value loss on other quoted Source: Bloomberg
lion based on its estimated 1.6 billion investment,” said Green Packet, which had
outstanding shares. earlier on Tuesday held its AGM here. be listed on Bursa a day later pursuant to
its private placement of 716.41 million
The previous record-high trading volume In a separate Bursa filing, Green Pack- new shares under a new share placement
was registered on Oct 7, 2020, when 248.46 et said: “The board of directors of Green that would constitute up to 40% of out-
million Green Packet shares changed hands. Packet wishes to inform that the ordinary standing shares.
The counter closed at 50 sen then. resolutions tabled at the AGM were duly
passed by the shareholders.” “The 200 million Green Packet shares
Green Packet reported on Tuesday that were allotted and issued pursuant to the
its first quarter net loss stood at RM19.98 Green Packet’s notable recent filings private placement that was announced on
million compared to a net profit of RM18.81 included one on May 5 when the com- Dec 17, 2021,” the company noted.
million a year earlier as revenue fell. pany said 200 million new shares would
Following the listing of the 200 mil-
In a statement to Bursa, Green Packet lion new shares, Green Packet said its
said revenue was lower at RM102.34 mil- latest number of issued shares stood at
lion in the first quarter ended March 31, 1.6 billion.
2022 (1QFY22) from RM142.71 million
a year prior.

KUALA LUMPUR (May 24): Penang- Cnergenz opens duction mode would take probably another
based electronics manufacturing solutions 4.3% higher on year. So, the issue would not be addressed
provider Cnergenz Bhd closed unchanged debut but closes in this short time.
on its debut on the ACE Market on Tues-
day (May 24) after opening 4.31% higher unchanged “Usually, for small and medium enter-
at 60.5 sen, or 2.5 sen over its initial public prises in the electronics sector, it will prob-
offering (IPO) price of 58 sen. by Sulhi Khalid & Hailey Chung ably take a few quarters after that to see
theedgemarkets.com the flow-down effect of the semiconductor
The stock hit an intraday high of 61.5 expansion,” Lye explained.
sen before paring gains and closed un- wards the group’s expansion of its operational
changed at 58 sen, translating into a mar- facilities, as well as research and development He also pointed out that the group
ket capitalisation of RM288.84 million. expenditure and working capital purposes. expects to benefit from strong growth in
the semiconductor industry as demand for
It was one of the most actively traded Touching on the company’s dividend electronic gadgets remained strong during
stocks with a total of 109.87 million shares policy, chief executive officer and executive the Covid-19 pandemic.
changing hands. director Lye Yhin Choy said Cnergenz is
now in a growth phase and will only finalise Incorporated in 2004, Cnergenz is an
Commenting on the group’s IPO, Cner- its dividend policy after the completion of electronics manufacturing solutions pro-
genz independent non-executive chairman a new factory in Penang. vider specialising in surface-mount tech-
Datuk Azman Mahmud said he is confi- nology catering to the electronics and semi-
dent that the group will continue its growth The group has earmarked RM36 mil- conductor industries in Malaysia,Thailand
trajectory, and enhance its market presence lion for the smart automation factory, and Vietnam.
and operations through its future expan- which is slated to be completed by the
sion and development plans. second half of next year and Lye antici- For the financial year ended Dec 31,
pates that more factories will be built in the 2020 (FY20), Cnergenz registered a net
“We believe that the introduction of Cner- country, especially in Penang, in order to profit of RM16.07 million, 47.39% low-
genz to the stock exchange will bring greater address the global semiconductor shortage. er than RM30.55 million for FY19, as
visibility to investors, and highlight the impor- revenue fell to RM132.82 million from
tance of electronics manufacturing solutions “The timeline for them to start up the RM255.98 million.
in building up an advanced and efficient man- [new] factories and turn them into pro-
ufacturing ecosystem in the country, further For FY18, the group posted a net prof-
strengthening Malaysia’s position as a global it of RM23.29 million on a revenue of
electronics and semiconductor hub.” RM187.75 million.

The IPO raised gross proceeds of RM58 UOB Kay Hian was the principal ad-
million, which will primarily be channelled to- viser, sponsor, underwriter and placement
agent for Cnergenz’s IPO.

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Zahid Izzani Mohd Said/The Edge

Jasmine
Loo’s 1MDB
forfeiture case
gets new JC

Datuk Seri Dr by hafiz yatim
Ahmad Zahid theedgemarkets.com

Hamidi KUALA LUMPUR (May 24): The
prosecution’s forfeiture suit to claim
Zahid says he Zahid, who was testifying in his own the assets of 1Malaysia Development
transferred defence against 47 charges involving CBT, Bhd’s (1MDB) former general counsel
RM17 mil to law corruption and money laundering with his Jasmine Loo Ai Swan has been trans-
firm because charitable foundation and the misappro- ferred to a new High Court and Judi-
of secretary’s priation of its funds, said that Mazlina was cial Commissioner (JC) Azhar Abdul
negligence to blame for usingYayasan Akalbudi funds Hamid from JC Roz Mawar Rozain.
to carry out these transactions.
by timothy achariam In the forfeiture application, the
theedgemarkets.com Zahid was reading from a witness state- prosecution is seeking to seize two
ment he gave to the Malaysian Anti-Cor- vehicles and two properties, one of
KUALA LUMPUR (May 24): Datuk ruption Commission in October 2018 which is in Mukim Batu, Kuala Lum-
Seri Dr Ahmad Zahid Hamidi on Tues- while under investigation. He was also an- pur, as previously reported by theedge-
day claimed negligence and mistakes by swering questions put to him by his lawyer. markets.com. The value of the prop-
his former private secretary in the transfers erties is unclear.The cars are said to
of funds belonging to him and his founda- Zahid said he had chosen Lewin & Co be aVolkswagen Beetle and an Audi.
tion had prompted him to use a law firm as trustees as he had been introduced to
to ensure tighter control of such transfers. them by a colleague and friend at the Min- A case management was held before
istry of Home Affairs. senior assistant registrar Sakinah Ah-
Testifying before the High Court here at mad Pauzi on Tuesday, when further
his corruption trial, Zahid said that Major Zahid also testified that he had never case management was fixed for June 28.
Mazlina Mazlan Ramly, who was entrusted instructed Mazlina to use Yayasan Akal-
with the running of his personal bank ac- budi funds to pay for his private vehicles’ Sakinah is the senior assistant
counts and finances as well as that ofYayas- insurance policies and road taxes. He is registrar for Azhar.
an Akalbudi, was negligent in handling his charged with using RM107,509.55 of the
finances as well asYayasan Akalbudi’s. foundation’s funds to pay the road taxes Last March, it was reported that
for his vehicles. Roz Mawar was seeking instructions
He said he had no choice but to transfer from the Chief Judge of Malaya on
more than RM17 million in funds from his “I would have stopped her immediately whether she should continue to pre-
charitable organisation to law firm Lewis if I had known,” he said, insisting Mazli- side over the forfeiture application
& Co as the law firm would ensure tight- na had done this without his green light. as before Roz Mawar was appoint-
er control of the fund transfers, he main- ed a JC earlier this year, she was the
tained, arguing his actions did not con- “I want to make it clear: I had absolute- deputy director of prosecution in the
stitute a criminal breach of trust (CBT). ly no idea she used these cheques to pay Securities Commission Malaysia.
for the insurance policies and road taxes.”
“What choice did I have?That was why This is the second transfer as pri-
I transferred the funds where there was Allianz General Insurance agent Ahmad or to Roz Mawar, Loo’s forfeiture
an accountant and a bookkeeper as well Izhan Abdul Rashid, who was called as case — filed in November last year
as accounts officers who could take care the 14th prosecution witness, previously — was to be heard by Justice Datuk
of a client’s accounts,” he testified before testified that Mazlina had given him the Ahmad Shahrir Mohd Salleh, but
Justice Collin Lawrence Sequerah. Yayasan Akalbudi cheques dated Jan 22, he was transferred to the KL High
2015 for RM24,980.55, another cheque Court’s civil division.
“I made the change not for criminal breach dated April 15, 2015 for RM43,645, and
of trust but because we needed to use a legal a third cheque dated Sept 22, 2015 for Loo, 48, left Malaysia before the
firm with officers who would take care of the RM38,884. 14th general election in 2018. She
funds as trustees toYayasan Akalbudi,” he said. is listed as a wanted person and her
The witness, who has been an agent for whereabouts are unknown.
the insurance company since 2006, said
the former deputy prime minister took 39 Click here for the full story
car insurance policies from him for 20 ve-
hicles, including 18 luxury vehicles such More court story: Court dismisses
as BMW X5, Mini Cooper S, BMW 320i Haniff Khatri’s application for
(A), Mercedes Benz CLS350 and a BMW summary judgement in RM12.5 mil
R1200 GS motorcycle. suit against Bersatu Click here

Zahid is represented by Hisyam Teh
Poh Teik and Datuk Ahmad Zaidi Zainal.

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KUALA LUMPUR (May 24): E-hailing Price fluctuations “Finally, we have observed a large in-
service Grab Malaysia clarified on Tues- a result of fewer crease in traffic congestion. This increases
day that the recent price fluctuations are drivers to accept the cost [in time and fuel] to serve each ride,
a result of fewer drivers on the road to ac- ride demand — while simultaneously reducing the effective
cept a sharp increase in ride demand from Grab Malaysia capacity of drivers to serve more rides.
passengers.
Bernama “While we strive to bring more driv-
Grab Malaysia, in a statement, said that er-partners on board, there is a mismatch
as of mid-May this year, the number of Bloomberg as the increase in demand for rides is out-
driver-partners on its platform was still pacing the growth in the number of drivers.
less than 70% of what it was pre-pandemic. Due to the need to meet various regu-
latory requirements, there is a slower re- “In the long term, we remain steadfast
“We want to be clear that we have not sponse time for new drivers to be onboard- in our commitment to providing affordable
made any changes to our fare structure. ed to meet the sharp increase in demand, rides for our community. However, in the
Grab adopts a dynamic pricing model to it added. short term, we will endeavour to meet all
ensure our passengers get a ride when they demand,” it said.
need one and our driver-partners are com-
pensated fairly for their time and effort. Grab Malaysia said it has taken steps
to increase the number of drivers, includ-
“When there are more people booking ing increasing incentives for driver-part-
a ride than the number of drivers availa- ners to get back on the road during peak
ble in an area, fares will ‘surge’ or go up to hours, subsidising up to 100% of total driv-
encourage more drivers to head to where er-partner regulatory compliance cost and
passengers are,” it said. offering referral bonuses up to RM300 to
existing driver-partners to refer and help
Grab Malaysia said the fluctuations in onboard new driver-partners.
supply and demand are driven by several
factors, including the fact that many driv- It also suggested that passengers to plan
er-partners have become inactive the past their trips and book earlier than usual.
two years due to Covid-19.
On Sunday, Transport Minister Da-
It said the recent lifting of Covid-19 tuk Seri Dr Wee Ka Siong said the min-
restrictions has contributed to a quick istry had instructed certain ride-hailing
rise in ride bookings, which has gained companies to clarify the alleged increases
further traction during the recent fes- in fares which had become a burden to
tive periods. consumers.

KUALA LUMPUR (May 24): Govern- Ekuinas Direct wider community,” said Ekuinas chairman
ment-linked private equity (PE) fund man- (Tranche II) Fund Raja Tan Sri Arshad Raja Tun Uda.
agement company Ekuiti Nasional Bhd generates 12.1%
(Ekuinas) said its Ekuinas Direct (Tranche In FY21, Ekuinas successfully increased
II) Fund recorded strong growth with a return total bumiputera equity ownership of its
gross portfolio return of RM654 million portfolio companies to RM5.9 billion, or
for the financial year ended Dec 31, 2021 by syafiqah salim 1.5 times the capital invested, from RM5.6
(FY21), compared with RM571.2 million theedgemarkets.com billion in 2020.
a year earlier.
On the other hand, the Ekuinas Out- “We also helped to increase the pool
The fund generated a gross internal sourced (Tranche II) Fund recorded a gross of bumiputera managers and employees
rate of return (IRR) of 12.1% per annum portfolio loss of RM4.4 million, translating by 19.4% for bumiputera managers and
(p.a.) and a net IRR of 8.6%, according to into a negative gross IRR of -0.8% p.a. 12.3% for bumiputera employees, up from
Ekuinas’ statement onTuesday (May 24). 13.3% and 10.5% respectively in 2020.
For the year under review, Ekuinas re-
Howevever, another fund, Ekuinas Di- corded a consolidated revenue growth of “These contributed towards increasing
rect (Tranche III), recorded a gross port- 12.1% and earnings before interest, taxes, total shareholder value of portfolio com-
folio loss of RM125.3 million, translating depreciation and amortisation (EBITDA) panies to RM7.7 billion, or two times the
into a negative gross IRR of -4.3% p.a. growth of 28%, well above -12.8% and invested capital, from RM7 billion in the
-14.9% respectively in FY20. previous year, reflecting Ekuinas’ success
“[Meanwhile,] the Ekuinas Direct in leveraging the PE business model to
(Tranche IV) Fund is still in the early stag- “While 2021 tested Ekuinas’ resilience promote wealth creation for bumiputeras
es of investment and is expected to perform as a company and as a PE investor given and all Malaysians,” Arshad added.
well, backed by the strong performance of the uncertain and challenging economic
its underlying asset, Medispec (M) Sdn Bhd, environment brought on by the [Covid-19] As of FY21, Ekuinas’ cumulative in-
a leading distributor and marketer of local pandemic and resulting lockdowns, Ekui- vestment stood at RM4.4 billion, which
pharmaceutical and supplement products. nas remained active in efforts to preserve comprised 70 investments covering 47 di-
This investment which was made in February our portfolio performance in a volatile en- rect investments and 23 outsourced pro-
2021 signified Ekuinas’ maiden foray into the vironment and create long-term value for grammes that consequently generated to-
pharmaceutical space,” the statement read. our investors, companies, people and the tal economic deployment of RM5 billion,
together with private-sector partners.
In relation to outsourced investments, Read also: ESG framework will guide
Ekuinas Outsourced (Tranche I) recorded Ekuinas’ investment strategy, says CEO
a gross portfolio return of RM60.5 million, Click here
achieving a gross IRR of 3.3% p.a. and a
net IRR of 2.5% p.a.

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news In brief

Malaysia, Japan to finalise MOC on Sarawak to boost use of domestic gas Bloomberg
sending skilled workers to Japan — KUCHING (May 24): The Sarawak
Saravanan government through Petroleum Sarawak Bintulu to the Samalaju Industrial Park is
PUTRAJAYA (May 24): A Memorandum Bhd (Petros) wants to further increase use expected to drive downstream industrial
of Cooperation (MoC) on the sending of of domestic gas and the coverage area for growth by attracting local and foreign
Malaysian skilled workers in certain sectors natural gas distribution in the state. State investments. — Bernama
to work in Japan would be finalised by both Utilities and Telecommunications Minister
countries, said Human Resource Minister Datuk Julaihi Narawi said two plans would Penang to consider applications for
Datuk Seri M. Saravanan. He said it was one be implemented to expand the coverage, corn cultivation
of the main thrusts of his working visit to namely construction of the Bintulu- GEORGE TOWN (May 24): The Penang
Japan from Wednesday (May 25) to May Samalaju Gas Pipeline in Bintulu and Pan government is willing to consider
28, in conjunction with Prime Minister Sarawak Virtual Pipeline System in major applications from quarters wanting to
Datuk Seri Ismail Sabri Yaakob’s official towns in the state. The construction of the carry out small-scale cultivation of corn
visit to the country. In a statement Tuesday 70km Bintulu-Samalaju Gas Pipeline from for chicken feed on Temporary Occupation
(May 24), Saravanan said he would sign Licence (TOL) land in the state. Chief
the MoC together with Japanese Justice Pestech inks deal to collaborate on Minister Chow Kon Yeow said the state
Minister Yoshihisa Furukawa, involving the green hydrogen production from government encouraged farmers to
participation of Japan’s Foreign Ministry, hydro plants venture into corn cultivation on a small
Health, Labour and Welfare Ministry KUALA LUMPUR (May 24): Pestech scale because the applications for TOL land
and its National Police Agency. The MoC International Bhd has inked a deal to currently were mostly for the cultivation
outlines 14 skilled labour sectors covering collaborate on green hydrogen production of fruits. Chow said Penang also strongly
various industries, namely, hardware and from hydro power plants in Cambodia and encouraged farming and livestock rearing
machine parts, aviation, automobile repair Malaysia. In a bourse filing on Tuesday activities. In fact, he said Penang was among
and maintenance, as well as industrial (May 24), Pestech said it entered into a the states which had a high capability to
machinery. — Bernama memorandum of understanding (MoU) with be independent in livestock and caged-fish
Hydrogène De France SA (HDF Energy). breeding and others. — Bernama
Shahril Basri/The Edge Under this MoU, Pestech will initiate
its commitment towards contributing Reuters
DNeX inks MoU with Accenture sustainable development through
to speed digital transformation in participation in green renewable initiatives. input prices and economic uncertainties
public sector The company said hydrogen is one of the caused by the Russian military invasion of
KUALA LUMPUR (May 24): Dagang leading options for storing renewable energy Ukraine. — by Izzul Ikram
NeXchange Bhd (DNeX) inked a in power generation and can become an
memorandum of understanding (MoU) alternative fuel or sustainable transportation
with Accenture Solutions Sdn Bhd on by providing clean, reliable, safe, convenient
Tuesday (May 24) to accelerate digital and affordable energy. — by Surin Murugiah
transformation for Malaysia’s public
services. Under the MoU, the parties Farm Fresh to increase prices
will create joint offerings with products, of RTD chilled products by 5%
services and solutions that drive data-led in mid-July 2022
transformation in Malaysia’s public services KUALA LUMPUR (May 24): Farm Fresh Bhd
and government-linked companies. “The is to increase the prices of its chilled ready-
collaboration allows joint development to-drink (RTD) products in mid-July this year
of products and services by leveraging by an average of 5%. In a filing on Tuesday
technologies and capabilities in the space of (May 24) in regards to its financial results
analytics, big data, artificial intelligence and for the fourth quarter ended March 31,
enterprise resource planning,” DNeX said in 2022 (4QFY22), the dairy product specialist
a statement. — by Hailey Chung said the slated move was induced by the
challenging environment it operates in —
posed by inflationary pressures from higher

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(May 24): Social media stocks are on Social media The owner of the Snapchat app, which
course to shed more than US$100 bil- stocks sink to sends disappearing messages and adds
lion in market value after Snap Inc’s prof- erase US$180 bil special effects to videos, reported quar-
it warning, adding to woes for the sector on Snap warning terly user growth in April that topped
which is already reeling amid stalling user estimates. But with the company saying
growth and rate-hike fears. by Subrat Patnaik & just a month later that it won’t meet prior
Thyagaraju Adinarayan forecasts for revenue and profit, analysts
Shares in digital ad-dependent Snap noted a rapid deterioration of the eco-
are set for a record one-day drop, down Bloomberg nomic environment.
30% in premarket trading. If that move
holds, the company will lose about US$10 Others onWall Street agreed, with RBC Snap and platforms like Facebook and
billion in market value. Added to the val- Capital Markets analyst Brad Erickson say- Google are competing for advertising dol-
ue of premarket declines for peers includ- ing that implications for the digital ad- lars at a challenging time. Spiralling in-
ing Facebook-owner Meta Platforms Inc, vertising space are broadly negative, with flation is putting pressure on companies
Google-owner Alphabet Inc, Twitter Inc Meta and Alphabet likely best insulated and consumer spending, while recent pri-
and Pinterest Inc, the group may see about among the group. vacy changes, such as Apple Inc’s track-
US$100 billion wiped out. ing restrictions, have slowed businesses
that were booming during much of the
“At this point, our sense is this is more pandemic.
macro and industry-driven versus Snap
specific,” Piper Sandler analyst Tom User growth is another a big focus for
Champion wrote in a note. social media firms as they vie to attract new
customers to target ads in an already satu-
rated market. In February, Facebook-par-
ent Meta posted the biggest one-day wipe-
out in market value for any US company
ever after saying that user additions stalled.

And broader concerns for the tech
sector have also been hitting social media
stocks, with the Federal Reserve’s path of
rate hikes particularly weighing on tech-
nology stocks that are valued on future
growth expectations.

Nasdaq 100 futures fell 1.7% in pre-
market trading on Tuesday, set to re-
verse most of Monday’s advance for the
gauge. The tech-heavy index is down
26% this year, wiping out several hun-
dred billions in value from the likes of
Apple to other so-called growth peers
like Netflix Inc.

NEWYORK (May 24): AcrossWall Street, Wall Street of bad news is priced in,” said David Gi-
from BlackRock Inc toT Rowe Price Group is buying roux, head of investment strategy at T
Inc, some veterans of the bond market’s Treasuries Rowe Price Investment Management, who
booms and busts are seeing signs that it is again in bet said the environment is now reminiscent
safe to start buying again. worst is over of 2013 and 2018, when 10-year yields
topped out at over 3%. “We have reduced
Few are eager to call the bottom just yet, by Michael MacKenzie cash and have been buying Treasuries.”
not with inflation still surging at a four-dec- & Liz Capo McCormick
ade high and the Federal Reserve (Fed) only The shift in sentiment has been evident
at the early stages of an aggressive cycle of Bloomberg over the past two weeks amid speculation
monetary policy tightening to contain it. that China’s Covid-19 lockdowns, the war
increasing their exposure, with some pre- in Ukraine, and tighter monetary policy
But yields have jumped so much this year, paring to step up the pace if yields over- worldwide will exert a drag on growth. On
nearly doubling those on 10-yearTreasuries, shoot what they see as a fair level. At JP- Tuesday, 10-year yields dropped as much
that it recalls past buying opportunities that Morgan Asset Management, the head of as nine basis points to 2.76%, the lowest
paid off when the tide turned. On top of global rates said the worst of the rout is since April 27 and down from as much as
that, there are indications that the economy likely over because the Fed’s rate hikes are much as 3.2% on May 9.
is cooling, with big-box retailers reporting a largely already priced in. Click here for the full story
shift in consumer spending and home sales Read also: Goldman strategist says
on the decline. And the drubbing taken by “We are getting to a point where a lot stocks will bottom once Fed signals shift
risky assets from growth stocks to cryptocur- Click here
rencies has turned Treasuries into a haven
again, delivering gains to those who bought
when yields peaked earlier this month.

All of that has long-time money man-
agers seeing reasons to start cautiously

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(May 24): The European Central Bank Lagarde says “When you’re out of negative, you can
(ECB) won’t be rushed into withdrawing ECB won’t be be at zero.You can be slightly above zero,”
monetary stimulus as officials act to contain rushed as officials Lagarde said. “This is something we will
inflation running at almost four times their act to curb prices determine on the basis of our projections,
2% target, president Christine Lagarde said. on the basis of our forward guidance.”
by Alexander Weber & Francine Lacqua
“I don’t think that we’re in a situation Bloomberg Lagarde refused to be drawn on wheth-
of surging demand at the moment,” she er the central bank might consider a 50
told Francine Lacqua on BloombergTelevi- Villeroy de Galhau, have also suggested basis-point move.
sion from the World Economic Forum in that the ECB may end the year with pos-
Davos, Switzerland onTuesday (May 24). itive interest rates. Traders are wagering Policymakers are walking a fine line as
“It’s definitely an inflation that is fuelled on four 25-basis-point hikes by the ECB Russia’s invasion of Ukraine sent prices
by the supply side of the economy. In that by end-2022. surging while denting confidence among
situation, we have to move in the right di- businesses and households. New Cov-
rection, obviously, but we don’t have to rush id-19 restrictions in China are putting
and we don’t have to panic.” additional strains on supply chains.

Lagarde spoke a day after laying out her The ECB president downplayed the
vision for the central bank’s next steps in risk of an economic contraction however,
a blog post.The ECB is likely to exit neg- saying “for the moment, we are not seeing
ative monetary policy by the a recession in the euro area”.
end of the third quarter, with
a first interest-rate increase set She cited unemployment
for July, she said. “at rock bottom rates”, large
household savings and the pros-
That prospective timetable pect of a strong summer for the
signalling two quarter-point tourism industry as forces that
interest-rate hikes in the third will offset negative shocks from
quarter has irked some col- the war and record inflation.
leagues because it would effec-
tively exclude moving with a The euro jumped on
half-point increment, accord- Lagarde’s comments, recov-
ing to people familiar with the ering earlier losses against the
matter. US dollar to hit a one-month
high of around US$1.0736,
Some officials, including and rallied versus other cur-
Bank of France chief Francois rencies including the Swiss
franc and sterling.

JAKARTA (May 24): Indonesia’s central Indonesia central parliamentary approval to boost energy
bank announced onTuesday more aggres- bank holds rates, subsidies by US$24 billion to keep most
sive hikes in the reserve requirement ra- to lift RRR more energy prices unchanged in a bid to curb
tio (RRR) for banks, expecting inflation accelerating inflation.
to rise slightly above its target band this aggressively
year, but kept interest rates unchanged at Radhika Rao, senior economist at DBS
a record low. by Gayatri Suroyo & Fransiska Nangoy Bank in Singapore, said in an email ener-
Reuters gy subsidies had dampened inflation risks.
Bank Indonesia (BI) announced a quick-
er pace in RRR hikes, ordering banks to to respond through interest rates like other “This coupled with limited rupiah de-
park 7.5% of their reserves starting July and central banks”,Warjiyo said. preciation versus regional peers lowered the
9% from September.This compared with urgency for Bank Indonesia to normalise
BI’s previously announced policy path, in “The acceleration of liquidity normali- policy,” said Rao, noting how “non-rate
which BI had set three staggered RRR hikes sation is a step for BI to maintain stability, levers” like RRR were being used to ab-
this year from 3.5% to 6.5% in September. while continuing to support growth and sorb liquidity.
loans to the business world,” he said in an
BI left the benchmark seven-day reverse online news conference. The rupiah has come under pressure in
repurchase rate at a record low of 3.50%, recent weeks amid expectations for faster
as expected by 25 of 27 economists polled The additional RRR hikes are set to mop US rate hikes, but its falls have been more
by Reuters. Its two other main rates were up 110 trillion rupiah (US$7.51 billion) limited than some other Asian emerging
also unchanged. of liquidity from the banking system, but market currencies.
Warjiyo said this should not affect lenders’
During the pandemic, BI cut interest ability to loan. However, Myrdal Gunarto, Maybank
rates by a total of 150 basis points and in- Indonesia’s economist, predicted BI will
jected billions of dollars into the financial He has previously said BI would main- start raising interest rates at the June policy
system and the RRR hikes were its first tain interest rates at record lows until it sees meeting, with inflation seen exceeding the
move to normalise monetary policy. signs of pressure on core inflation. April’s benchmark rate level. He expects a total
annual inflation hit 3.47%, a two-year high. of 75 basis points of rate hikes this year.
Governor Perry Warjiyo said inflation
will be slightly higher than BI’s 2% to 4% The government last week obtained Indonesia’s economy grew 5.01% in the
target range this year, but will come down first quarter, helped by a boom in com-
to within target next year, which he de- modities’ exports and the reopening of the
scribed as “manageable”. economy from Covid-19 curbs.

The inflation outlook “reduces the need BI kept its 2022 GDP outlook at 4.5%
to 5.3%.

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SYDNEY (May 24): New Prime Min- At Quad summit, the origins of Covid-19, and accusations
ister Anthony Albanese rebuked China Australia’s new of China using the internet to meddle
on Tuesday for imposing hefty tariffs on PM scolds China with Australia’s democracy.
Australian exports two years ago, in re- over trade tariffs
marks made while attending a regional National security, specifically in rela-
security conference in Tokyo a day after by Byron Kaye & Renju Jose tion to China, was among the main elec-
being sworn in. Reuters tion issues in Australia, and only weeks
before polling day the Solomon Islands
Albanese confirmed that he had re- “It’s not Australia that has changed, and China announced a security pact,
ceived a letter of congratulations from it’s China,” Albanese said. sparking fears of a Chinese military build-
Chinese Premier Li Keqiang after win- up less than 2,000 kilometres away.
ning an election on Saturday, but said he “It’s China that has applied sanctions
had still to reply to the leader of Austral- on Australia.There is no justification for The stance Australia’s new premier
ia’s biggest trading partner. doing that. And that’s why they should adopts at the Quad summit could be
be removed.” closely watched by China, which regards
“We will respond appropriately in the informal security grouping as an at-
time, when I return to Australia,” Al- There had been speculation in Aus- tempt to counter its influence in the In-
banese told journalists in Tokyo, where tralian media that the congratulatory do-Pacific region.
he was attending a summit of the Quad message from Xi might signal a diplo-
group along with US President Joe Bid- matic thaw. With votes still being counted, Al-
en and the prime ministers of Japan and banese’s Labor Party is leading on 75
India. Relations have been at their lowest seats — one short of the 76 required for
ebb for the past couple of years following a majority in the 151-seat lower house.
Albanese said he was more concerned clashes over issues ranging from trade to Some analysts predict Labor will get
about wide-ranging tariffs on Australi- enough seats to govern on its own.
an goods from coal to lobster, imposed Read also: US must be ‘strategic’ on
by China just a few years after the two China tariffs, trade chief says Click here
countries implemented a free trade
agreement.

UK faces growing
risk of recession
as firms buckle
under soaring

costs

by David Goodman
Bloomberg

LONDON (May 24): The UK economy a damaging period of stagflation. pressure rise to unprecedented levels”.
faces an increasing risk of falling into a The slump was most pronounced in UK firms are seeing operating expenses
recession as firms and households buckle
under the fastest inflation rate in four dec- the dominant service sector, where busi- rise at the fastest pace since records be-
ades, according to a closely watched survey ness expectations fell to the lowest since gan in 1998, according to the survey, with
of British companies. the first coronavirus lockdown and costs service firms particularly feeling the pain.
surged. Meanwhile, export orders and expectations
S&P Global’s index of private sector for future growth have both dropped to
growth unexpectedly collapsed in May to On top of an inflation rate that is on the lowest since May 2020.
levels last seen in February 2021, when the course to hit double-digits this year, firms
nation was still in the grip of a coronavi- are also facing a toxic mix of other chal- S&P said its composite index for the
rus lockdown, the firm said on Tuesday. lenges, with Brexit, China’s lockdowns, and whole economy fell to 51.8 this month,
The speed of the slowdown was the fourth the war in Ukraine all cited as reasons for down from 58.2 in April and barely above
largest on record and worse than anything pessimism. the 50 level that separates expansion from
seen before the pandemic hit. contraction. Economists had predicted a
“The latest data indicate a heightened reading of 56.5.
The pound slid by as much as 0.7% to risk of the economy falling into recession,” Read also: Sri Lanka increases fuel pric-
US$1.2504 after the report, while traders said ChrisWilliamson, chief business econ- es to address economic crisis Click here
also curbed bets on Bank of England in- omist at S&P Global Market Intelligence.
terest-rate hikes. It points “to the economy almost grinding
to a halt at the same time as inflationary
The survey showed the devastating im-
pact that surging prices are having on the
economy and will likely heap pressure on
the government to do more to help avert

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(May 24): India is set to restrict sugar exports India to limit However, global prices have jumped almost
as a precautionary measure to safeguard its sugar exports 20% in the past year, allowing India to in-
own food supplies,another act of protectionism in risk to global crease shipments without subsidies. There
after banning wheat sales just over a week ago. are expectations for exports to range between
food prices 9 million and 11 million tons this season.
The government is planning to cap sugar
exports at 10 million tons for the marketing by Bloomberg News & Ashutosh Joshi “Some in the market were expecting as
year that runs through September, according Bloomberg much as 11 million tons, so at least the news
to a person familiar with the matter.The aim puts a cap on expectations,” said Michael
is to ensure there are adequate stockpiles be- surge in already-soaring global food prices. McDougall, managing director at Paragon
fore the next sugar season starts in October, Other recent measures by governments Global Markets LLC. “There is still some
the person said, asking not to be identified divergence of opinions over how much has
as the information is private. in Asia include Indonesia’s ban on palm oil already been sold.”
exports and Malaysia halting chicken sales
The move may be announced in the com- abroad. An export halt is likely to support the global
ing days, the person said. India was the world’s sugar market given India is a major producer
biggest sugar exporter after Brazil last year, and The latest step on sugar appears to be and exporter. Once shipments hit 9 million
counts Bangladesh, Indonesia, Malaysia and an extreme case of precaution given domes- tons, exporters will have to apply for permits to
Dubai among its top customers. tic supplies are abundant. India is expected send the remaining 1 million, the person said.
to produce 35 million tons this season and
A spokesman for both the food and com- consume 27 million tons, according to the Companies have signed deals to export 8.5
merce ministries didn’t immediately respond Indian Sugar Mills Association. Including million tons since Oct 1 last year.An estimated
to a request for comment. Sugar futures in last season’s stockpiles of about 8.2 million 7.1 million have been shipped as of end-April,
London rose as much as 1.1%. Producers in tons, it has a surplus of 16 million, including and another 800,000 to 1 million tons are like-
India plunged, with Shree Renuka Sugars Ltd as much as 10 million for exports. ly in May, the industry group said last week.
sliding as much as 14% and Balrampur Chini
Mills Ltd slumping 10%, before paring losses. India rarely shipped more than 7 million The sugar move will be less disruptive
tons until last year, when exports hit a re- for market operations, “unlike the wheat ex-
India took the world by surprise earlier cord 7.2 million. Sugar mills tended to rely port ban, where trade was caught off guard,”
this month when it curbed exports of wheat on government subsidies to boost exports. said Somit Banerjee, head of trading at Du-
after a heatwave destroyed some crops, caus- bai-based refiner Al Khaleej Sugar Co.
ing a jump in benchmark prices. Steps by Read also: India considers tax cut on soybean
governments to ban sales abroad, particularly and sunflower oil to cool prices Click here
in Asia, have ramped up in recent weeks since
Russia’s invasion of Ukraine sparked a further

Rising global food
protectionism
risks worsening
inflation woes

by Low De Wei
Bloomberg

LONDON (May 24): Food protectionism is on to issue food vouchers to some households. tled supply chains. More food protectionism
the rise in the developing world as governments “Lower-income households in the UK and could push costs even higher, further hurt-
try to safeguard local supplies,and the effects are ing consumer purchasing power and creating
threatening to spill over into richer economies. the US are struggling to feed themselves,” said headaches for central banks trying to curb
Sonia Akter, an assistant professor specialising inflation while maintaining growth.
Countries are restricting exports to cope with in agriculture at the Lee KuanYew School of
high prices that have been exacerbated by the Public Policy at the National University of Sin- The risks are skewed toward more food
war in Ukraine. Malaysia just announced a ban gapore. Rising prices “will disproportionately protectionism in Asia, said SonalVarma, chief
on chicken exports, causing consternation in affect poor people who spend a large share of economist for India and Asia ex-Japan at No-
Singapore, which gets a third of its supplies from their income on food”, she said. mura Holdings Inc. That could exacerbate
there. India has moved to curb wheat and sugar price pressures globally, she said.
shipments, Indonesia has limited palm oil sales, A United Nations gauge of world food Click here for the full story
and some other nations have issued grain quotas. prices has jumped more than 70% since mid-
2020 and is near a record after the invasion
The poorest countries are most vulner- of Ukraine choked off crop exports and rat-
able to surging food prices and shortages,
but wealthier economies are not immune.
For example, almost 10 million Britons cut
back on food in April amid a cost-of-living
crisis. US restaurants are shrinking the size
of their portions, while France has pledged

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China stimulus brings limited help
to lockdown-hit consumers

(May 24): China rolled out a broad package by Bloomberg News, Lianting Tu sectors, with those deferred payments ex-
of support measures largely targeted toward & Yujing Liu pected to amount to 320 billion yuan. A
businesses struggling to cope with Covid Bloomberg quota for loans aimed at small and medi-
lockdowns, with limited relief for consum- um-sized enterprises would also be doubled.
ers facing job losses and sliding incomes. bloomberg
Borrowing demand in the economy has
The State Council, China’s cabinet, out- pushes the government’s total planned re- been very weak though, with loan growth
lined a 33-point plan that gives companies duction in taxes this year to 2.64 trillion sliding to multi-year lows last month. Chi-
more than 140 billion yuan (US$21 bil- yuan — slightly more than the relief Beijing na’s central bank and banking regulator
lion) of extra tax rebates and allows them offered in 2020, when China was first hit held a separate meeting with major finan-
to defer social insurance payments and by the pandemic. cial institutions on Monday to urge them
loans. Additional emergency loans will go to boost loans.
toward the aviation industry, and railway “Without a certain level of GDP growth,
construction will be boosted by 300 billion stable employment cannot be realized,” Li Infrastructure was another big focus of
yuan of bonds. said. “One good thing is that we refrained the State Council’s measures. It urged local
from excessive money supply and mass governments to spend the proceeds of spe-
Support for consumers was restricted stimulus in the past few years, and we still cial bonds, mainly used in infrastructure, by
to tax cuts on vehicle purchases, the de- have policy tools in reserve.” the end of August. Beijing will also launch a
ferment of some consumer and mortgage series of projects in areas such as water, the
loans, and ensuring social benefits rose in China’s zero tolerance policy of com- renovation of old housing, energy security
line with price increases. bating Covid-19 has forced major hubs like and underground piping. It will also start a
Shanghai into lockdown for more than a new round of rural road construction and
Premier Li Keqiang, who chaired the month, roiled supply chains, slashed man- renovation.
cabinet meeting, highlighted the importance ufacturing and pushed up the jobless rate
of job stability and the need to get the econ- to close to a record. Separately, calls have been growing for
omy back on track. However, authorities the government to sell “special sovereign
have been reluctant to provide direct sup- Iris Pang, chief economist for Greater bonds,” as it did in 2020, to pay for the ex-
port to households, like cash handouts and China at ING Groep NV, said while the tra stimulus.The state-run China Securities
consumer vouchers, limiting the effective- State Council measures were largely fo- Journal cited analysts in a front-page report
ness of China’s support. cused on the “supply-side” of the econo- on Tuesday suggesting more fiscal policy
my, the State Council did emphasize job tools may be used next, including the sale
Many economists expect the government stability, which is important to grow con- of special government debt.
won’t meet its annual GDP growth target sumption. Infrastructure spending “should
of about 5.5% this year, with UBS Group provide jobs as well,” she said. Unlike regular bonds, the special sov-
AG the latest to downgrade its projection ereign bonds aren’t counted in the official
to just 3%. Several prominent economists though budget deficit and the proceeds are meant
have called for more direct support to to be used for specific policy goals rather
“We believe these measures will provide households, like cash handouts and spend- than general public spending.
some help and alleviate the severity of the ing vouchers, to boost demand in the econ-
growth slowdown or even contraction, but omy. Justin LinYifu, a formerWorld Bank Beijing has widened the scope of tax
we remain cautious about growth prospects chief economist, recommended the govern- relief policies in recent weeks but hasn’t
for this year,” Nomura Holdings Ltd. econ- ment give 1,000 yuan to families in areas revised its fiscal targets for the year, which
omists led by Lu Ting wrote in a note. under lockdown to support consumption. were set in early March before the omi-
Gao Zhanjun, a researcher with the Nation- cron variant prompted a strict lockdown
Chinese auto and airline stocks rallied on al Institution for Finance & Development, of Shanghai and tight restrictions in other
news of the tax relief measures and lending echoed those views for cash handouts and major urban centers.At the time the budget
support for the industries. GreatWall Mo- consumption coupons. was released, the government said it would
tor Co rose more than 5% in Hong Kong, provide tax relief this year worth about 2.5
while Geely Automobile Holdings jumped To help support businesses, Beijing will trillion yuan, including 1.5 trillion yuan in
3.5%. Air China Ltd gained 1.4%. extend an existing delay on companies’ so- rebates.
cial-insurance contributions to the end of
Still, the steps failed to lift sentiment in the year and expand the measure to more The latest State Council measures didn’t
the broader equities market. China’s bench- state how the additional tax cuts will be
mark CSI 300 Index slumped 2.3%, the funded, or if they will require a revision of
most since May 6, to be the worst perform- Beijing’s official deficit target for the year.
er in Asia. Read also:
China, Hong Kong shares slump as Beijing
“The impact of the various easing pol- ramps up Covid-19 measures Click here
icies may be smaller than in previous eco-
nomic cycles because entities face a lot of China’s US$16 tril cash hoard shows
uncertainties under the pandemic and are deepening household gloom Click here
reluctant to invest or spend,” said China
International Capital Corp analyst Zhou
Peng.

The additional tax relief announced
Monday represents about 0.1% of Chi-
na’s gross domestic product last year, and

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world

Aramco CEO Economic Forum in Davos. news In brief
warns of global “What happened in Russia-Ukraine
Samsung to invest US$356 bil over
oil crunch masked what would have happened. We five years in strategic sectors
due to lack of were going through an energy crisis be- SEOUL (May 24): Samsung Group
investment cause of a lack of investment. And it started will invest 450 trillion won (US$356
to bite following the pandemic,” he added. billion) in the next five years to
by Alessandra Galloni accelerate growth in semiconductors,
& Dmitry Zhdannikov Nasser said Covid restrictions in China biopharmaceutical and other next-
Reuters would not last long and global oil demand generation technologies. Samsung
would therefore resume its growth. Electronics said the investments
DAVOS (May 23): The world is facing a through 2026 are expected to help
major oil supply crunch as most compa- Saudi Arabia is currently producing Samsung drive long-term growth in
nies are afraid to invest in the sector as 10.5 million bpd, or every tenth barrel in strategic areas such as the chip sector,
they face green energy pressures, the head the world, and will likely raise output to 11 while pledging aggressive investments
of Saudi Aramco told Reuters, adding it million bpd later this year when a broad- in biopharmaceutical to make it as
cannot expand production capacity any er pact between OPEC and allies such as successful as its chip business. The
faster than promised. Russia expires. world’s largest memory chip maker
did not provide a breakdown of
Amin Nasser, head of the world’s larg- Riyadh has faced calls from the West the figures, though it added that
est oil producer, said on Monday he was to raise output more quickly and expand 80% of investments will be made
sticking to the target of expanding capac- capacity faster to help combat the ener- in South Korea and that Tuesday’s
ity to 13 million barrels per day from the gy crisis. announcement includes a 240 trillion
current 12 million by 2027, despite calls won investment pledge made in August
to do it faster. “If we could do it (expand capacity) be- 2021. It did not include electric vehicle
fore 2027, we would have done it.This is batteries as a future growth engine in
“The world is running with less than what we tell policymakers. It takes time”. the announcement.
2% of spare capacity. Before Covid, the
aviation industry was consuming 2.5 Nasser also said dialogue between the
million bpd more than today. If the avi- oil industry and policymakers over the
ation industry picks up speed, you are transition from fossil fuels to energy which
going to have a major problem,” Nasser does not result in carbon emissions has
told Reuters on the sidelines of the World been problematic.

“I don’t think there is a lot of construc-
tive dialogue going on. In certain areas we
are not brought to the table.We were not
invited to COP in Glasgow,” he said refer-
ring the last year’s UN climate conference
in Glasgow, Scotland.
Click here for the full story

(May 24): Oyo Hotels, the once high-fly- SoftBank-backed Air France-KLM to sell US$2.4 bil
ing Indian startup, is shelving plans for Oyo to shelve new shares to cut debt
an initial public offering in 2022 after a
market downturn that would hurt its val- plans for IPO in (May 24): Air France-KLM plans to
uation, according to people familiar with 2022, sources say sell about €2.26 billion (US$2.4 billion
the matter. or RM10.59 billion) new shares to
by Saritha Rai shore up its balance sheet and repay
The board of Oyo, formally known as Bloomberg a chunk of the state aid that helped
Oravel Stays Ltd, talked through a change the carrier survive the Covid-19 crisis.
in the offering’s timing during multiple flation fears rising, lingering Covid-19 in- Proceeds will be used to reimburse
meetings last week and earlier this week fections and the war in Ukraine, investors about €1.7 billion of subordinate bonds
after consulting with its bankers and in- have roiled markets and pulled back from issued in April last year and held by
vestors, said the people, asking not to be risky investments.The tech-heavy Nasdaq the French government, and to further
identified because the decisions aren’t yet index has tumbled 26% this year. trim the company’s debt, the Franco-
public. If the company picks up the process Dutch airline said in a statement. “We
again by year end, the earliest possibility “This isn’t the best of times for any want to be in a position to seize any
for an IPO would be in 2023, they said. IPO,” said Ashutosh Sharma, head of re- opportunity in a changing aviation
search, Forrester Research Inc. “Why Oyo, sector and to be able to accelerate our
The Gurgaon-headquartered company, any startup anywhere in the world looking environmental commitments,” CEO Ben
which filed preliminary IPO documents last to raise money through IPO,VC funding or Smith said. The transaction will bring
year, is seeking regulatory permission to up- PE placement or any other channel, won’t Air France-KLM closer to completing
date its draft prospectus with fresh financial get the best valuation.” its plans for a €4 billion capital increase
information after the close of the Septem- as it seeks to repay debt in line with
ber quarter, said the people. Its bankers, Click here for the full story European Union requirements on state
led by Kotak Investment Banking, have funding, which currently bar the airline
filed the request with the Securities and from participating in the consolidation
Exchange Board of India, the people said. of the industry that’s been marred by
the pandemic.
The decision could make Oyo’s IPO a
high-profile casualty from a global down-
turn in the technology industry. With in-

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Crypto markets trillion last November up from less than news In brief
may pose risks to US$300 billion at the start of 2020. Still,
wider financial Bitcoin, the biggest token, since Novem- reuters
stability, ECB warns ber has slumped by over half, dragging the
value of the overall crypto market down to Toyota to cut global production
by Francesco Canepa & Tom Wilson around US$1.2 trillion. plan by 100,000 in June
Reuters TOKYO (May 24): Toyota Motor Corp will
The ECB in its biannual financial stability cut its global production plan by about
FRANKFURT (May 24): Cryptocurren- review said exposure to crypto by banks and 100,000 to roughly 850,000 vehicles in
cies will pose a risk to financial stability other financial institutions on a wide scale June due to the semiconductor shortage,
if the emerging sector maintains its rapid could put capital at risk and damage investor it said on Tuesday.The company did
growth of the last two years and financial confidence, lending, and financial markets. not change its estimate of producing
firms deepen their involvement, the Euro- about 9.7 million vehicles worldwide
pean Central Bank (ECB) said onTuesday. “Systemic risk increases in line with the by March 2023. The automaker also
level of interconnectedness between cryp- announced additional domestic factory
The crypto market slumped sharply this to-assets and the traditional financial sec- line suspension due to a supply shortage
month after the downfall of major“stablecoin” tor,” it said. triggered by the Covid-19 lockdown in
terraUSD.The crash has led to calls from the Shanghai. The additional suspension will
world’s top financial leaders for “swift and Highly leveraged trading offered by be up to five days between Wednesday
comprehensive” regulation of the sector. crypto exchanges has seen investors bor- and June 3, affecting 16 lines at 10
row funds to buy greater exposure to cryp- factories for May and June in total. It
Cryptocurrencies — historically a niche to, also heightening financial stability risks, is planning to produce about 850,000
asset favoured by risk-hungry investors, ex- the ECB noted. vehicles globally a month on average from
ploded in size during the Covid-19 pan- June through August, it said, adding that
demic. Institutional investors especially were Click here for the full story chips shortage and Covid-19 outbreaks
drawn by claims that Bitcoin acts as a hedge and other factors “are making it difficult to
against inflation and offers high returns in Read also: look ahead”. — Reuters
the face of low interest rates. Terra collapse triggers US$83 bil
decentralized finance slump Click here Ralph Lauren expects margins to grow
The crypto sector hit a peak of US$2.9 One in 10 eurozone households owns as the affluent shrug off inflation
crypto-assets — survey Click here BENGALURU (May 24): Ralph Lauren
Corp on Tuesday forecast higher sales and
FRANKFURT (May 24): Gorillas will lay German grocery app improved margins for the year as demand
off 300 people, cutting its administrative staff Gorillas to cut staff for its luxury clothing and accessories
in half, as the German grocery delivery app in search of profit from its biggest markets in North America
shifts focus from rapid expansion to turning and Europe stays strong. The luxury
a profit, Chief Executive Kagan Sumer said. by Nadine Schimroszik brand, which has raised prices to make
& Zuzanna Szymanska up for increased freight and product
The Berlin-based startup, founded in costs, forecast fiscal 2023 gross margin
2020, has tripled the size of its business since Reuters to increase 30 to 50 basis points on a
October when it raised 860 million euros comparable, constant currency basis. The
(US$921 million) but it has not been prof- reuters 55-year-old apparel and footwear brand
itable amid an uncertain economic outlook. also forecast revenue to increase in high
in Italy, Spain, Denmark and Belgium. single digits, compared with Wall Street’s
“Risk has become irritating for inves- Gorillas, whose investors include online expectation of a 3.6% increase, according
tors, and nobody wants uncertainty right to IBES data from Refinitiv. Ralph Lauren’s
now. That makes it pretty hard to raise takeaway food firm Delivery Hero, had in the net revenue rose 18% to US$1.52 billion
money right now,” Sumer told Reuters in past aimed to expand into more countries amid for the fourth quarter, beating estimates
an interview. “When we go public, we want hopes the business model would grow as much of US$1.46 billion. Excluding one-off
to do it as a profitable company.” as meal delivery did in Covid-19 lockdowns. charges, the company reported a profit
of 49 cents per share, compared with
The model for rapid grocery deliveries But competition has been fierce in ma- estimates of 36 cents per share. It also
comes with high costs as the companies have jor cities, such as Berlin, with rivals such as raised its quarterly cash dividend by 9% to
to pay for thousands of riders and logistic Flink, Doordash’s Wolt and Getir offering 75 cents per share. — Reuters
centres across cities to get crisps, milk, pasta similar services.
and other items to customers swiftly. Read also: Chanel may limit purchases
more in exclusivity drive Click here
“That’s why fixed costs have to come
down and the Berlin headquarters should
become the hub,” Sumer said, adding that
the company was only laying off adminis-
trative staff and its 14,000 bicycle-bound
deliverers would not be affected.

He said Gorillas aimed to focus on Ger-
many, France, Britain, the Netherlands
and the United States, which make up
90% of the startup’s business, and it was
reviewing options for its smaller operations

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reuters

Pfizer says
three-dose
Covid-19
vaccination
80% effective
in young

children

reuters

WHO says no caused serious disease.The vaccines used Bernama
urgent need for to combat monkeypox can have some sig-
mass monkeypox nificant side-effects, he added. LOS ANGELES (May 24): Pfizer and
its German partner BioNTech said on
vaccinations It is unclear what is driving the out- Monday (May 23) that preliminary clin-
break, with scientists trying to understand ical data showed that their three-dose
by Natalie Grover the origin of the cases and whether any- Covid-19 vaccine regimen was 80% ef-
Reuters thing about the virus has changed.There fective for children six months to five
is no evidence the virus has mutated, a years old at preventing illness during
LONDON (May 24):The World Health senior executive at the U.N. agency said the Omicron wave.
Organization does not believe the mon- separately on Monday.
keypox outbreak outside of Africa requires The vaccine was found to elicit a
mass vaccinations as measures like good Many — but not all — of the people strong immune response following a
hygiene and safe sexual behaviour will who have been diagnosed in the current third dose, and was well tolerated by
help control its spread, a senior official monkeypox outbreak have been men who the children with a majority of the side
said on Monday. have sex with men. But that may be be- effects mild to moderate, according to
cause this demographic is likely to seek the companies, reported Xinhua.
Richard Pebody, who leads the high- medical advice or access sexual health
threat pathogen team at WHO Europe, screening more readily, the WHO said The safety data for the Pfizer vac-
also told Reuters in an interview that im- earlier in the day. cine is based on 1,678 children under
mediate supplies of vaccines and antivirals age five who received a third shot at
are relatively limited. Most of the confirmed cases have not least two months after the second dose
been linked to travel to Africa, which sug- when Omicron was the main variant in
His comments came as the U.S. gests there may be large amounts of un- circulation.
Centers for Disease Control and Preven- detected cases, said Pebody. Some health
tion said it was in the process of releasing authorities suspect there is some degree Children under age five receive
some Jynneos vaccine doses for use in of community spread. three-microgramme shots, one-tenth
monkeypox cases. the dosage level for adults.
“So we’re only seeing ... the tip of the
Germany’s government said on Mon- iceberg,” he said. “These top-line safety, immuno-
day that it was assessing options for vac- genicity and efficacy data are encour-
cinations, while Britain has offered them Given the pace of the outbreak, and aging, and we look forward to soon com-
to some healthcare workers. lack of clarity around what is driving it, pleting our submissions to regulators
there has been worry that large events and globally with the hope of making this
Public health authorities in Europe parties this summer could make things vaccine available to younger children as
and North America are investigating more much worse. quickly as possible, subject to regulatory
than 100 suspected and confirmed cases authorisation,” said Pfizer chairman and
of the viral infection in the worst outbreak “I’m not saying to people don’t have chief executive officer Albert Bourla.
of the virus outside of Africa, where it is a good time, don’t go to attend these
endemic. events,” Pebody said. Pfizer said it is preparing relevant
documents and expect to complete the
The primary measures to control the “It’s rather around what people do at submission process to the US Food and
outbreak are contact tracing and isolation, the parties that matters. So it’s about safe Drug Administration this week.
Pebody said, noting that it is not a virus sexual behaviour, good hygiene, regular
that spreads very easily, nor has it so far hand washing — all these sorts of things
will help to limit the transmission of this
virus.”
Read also: Monkeypox can be contained if
people recognise it, saysWHO Click here

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MARKETS

CPO RM 6,482.00 221.00 OIL US$ 113.81 0.39 RM/USD 4.3960 RM/SGD 3.1939 RM/AUD 3.1093 RM/GBP 5.4843 RM/EUR 4.7093

Top 20 active stocks

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

Green Packet Bhd 466.29 -0.015 0.080 0.00 127.6

MNC Wireless Bhd 442.78 - 0.015 0.00 34.3

Sapura Energy Bhd 208.00 - 0.085 70.00 1,358.2

KNM Group Bhd 188.30 -0.040 0.155 3.33 569.8

Cnergenz Bhd 109.87 - 0.580 0.00 288.8

Serba Dinamik Holdings Bhd 76.84 -0.010 0.100 -71.43 371.0

Widad Group Bhd 33.25 - 0.360 -1.37 990.9

Top Glove Corp Bhd 32.85 -0.090 1.400 -45.95 11,210.1

TECHNA-X Bhd 32.54 - 0.055 -26.67 121.8 World equity indices

Hibiscus Petroleum Bhd 29.02 -0.030 1.430 75.46 2,877.8

My EG Services Bhd 27.06 -0.015 0.875 -18.22 6,462.3 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%)
Kejuruteraan Asastera Bhd 25.71 -0.020 0.420 64.71 755.1 DOW JONES 31,880.24 618.34 1.98 (%)
INDONESIA 6,914.14 73.37 1.07
Dagang NeXchange Bhd 24.88 - 1.030 35.53 3,250.9

Euro Holdings Bhd 23.41 -0.005 0.180 -62.89 144.3 S&P 500 3,973.75 72.39 1.86 JAPAN 26,748.14 -253.38 -0.94

Cypark Resources Bhd 22.77 -0.160 0.500 -45.05 294.4 NASDAQ 100 12,034.28 198.66 1.68 KOREA 2,605.87 -41.51 -1.57

Jade Marvel Group Bhd 22.41 -0.01 0.905 37.12 291.4 FTSE 100 7,481.18 -32.26 -0.43 PHILIPPINES 6,577.45 -110.40 -1.65

Malayan United Industries Bhd 22.37 - 0.055 -21.43 171 AUSTRALIA 7,128.83 -20.06 -0.28 SINGAPORE 3,195.04 -18.61 -0.58

PUC BHD 20.80 -0.005 0.050 -65.52 81.3 CHINA 3,070.93 -75.93 -2.41 TAIWAN 15,963.63 -192.78 -1.19

Fast Energy Holdings Bhd 20.03 -0.005 0.050 -47.37 36.9 HONG KONG 20,112.10 -357.96 -1.75 THAILAND 1,628.29 -6.99 -0.43

Destini Bhd 19.47 -0.010 0.195 8.33 324.4 INDIA 54,086.92 -201.69 -0.37 VIETNAM 1,233.38 14.57 1.20

Data as compiled on May 24, 2022 Source: Bloomberg Data as compiled on May 24, 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)

China Automobile Parts Holdings 0.015 50.00 5500.1 0.00 20.4 Key Alliance Group Bhd 0.005 -50.00 2,932.7 -66.67 18.4

Compugates Holdings BHd 0.015 50.00 1054.7 0.00 68.8 Fintec Global Bhd 0.010 -33.33 3,710.2 0.00 59.2

Lee Swee Kiat Group Bhd 0.830 23.88 1798.9 1.22 134.3 AT Systematization Bhd 0.010 -33.33 6,528.0 -66.67 60.0

Top Builders Capital Bhd 0.030 20.00 3191.1 -14.29 21.2 Cypark Resources Bhd 0.500 -24.24 22,766.1 -45.05 294.4

Alam Maritim Resources Bhd 0.040 14.29 5451.5 60.00 61.3 Iqzan Holding Bhd 0.035 -22.22 1,671.6 -30.00 7.8

Mega Sun City Holdings Bhd 0.095 11.76 1919.0 -13.64 56.2 KNM Group Bhd 0.155 -20.51 188,295.1 3.33 569.8

Seremban Engineering Bhd 1.240 10.71 58.5 -1.59 98.8 Eduspec Holdings Bhd 0.020 -20.00 2,075.0 33.33 60.9

Bioalpha Holdings Bhd 0.160 10.34 18442.0 -15.79 193.6 Xidelang Holdings Ltd 0.025 -16.67 465.0 -28.57 52.9

Saudee Group Bhd 0.055 10.00 1533.0 0.00 54.5 Mlabs Systems Bhd 0.025 -16.67 2.8 -16.67 36.2

Sapura Resources Bhd 0.320 8.47 31.8 -18.99 44.7 Borneo Oil Bhd 0.025 -16.67 2,203.6 -16.67 187.2

Minda Global Bhd 0.065 8.33 109.2 18.18 85.9 Oversea Enterprise Bhd 0.105 -16.00 37.0 -12.50 119.2

Minetech Resources Bhd 0.065 8.33 231.0 -35.00 77.2 Green Packet Bhd 0.080 -15.79 466,285.0 0.00 127.6

Turbo-Mech Bhd 0.830 7.79 14.0 9.21 89.6 AE Multi Holdings Bhd 0.030 -14.29 119.1 0.00 64.9

OpenSys M Bhd 0.375 7.14 7693.5 2.74 167.6 Handal Energy Bhd 0.130 -13.33 160.0 -35.00 30.0

Timberwell BHD 0.620 6.90 24.3 6.90 55.2 Komarkcorp Bhd 0.080 -11.11 482.4 -30.43 46.2

Computer Forms Malaysia Bhd 0.870 6.75 4743.7 39.20 178.4 Reservoir Link Energy Bhd 0.380 -10.59 4,695.5 -29.63 110.4

Fitters Diversified Bhd 0.085 6.25 9937.3 -73.02 51.7 Digistar Corp Bhd 0.045 -10.00 3,761.1 -25.00 35.2

ABM Fujiya Bhd 0.445 5.95 60.0 9.88 80.1 Hengyuan Refining Co Bhd 6.600 -9.59 9,137.2 70.54 1980.0

Boustead Plantations Bhd 1.070 5.94 13465.9 64.62 2396.8 OCR Group Bhd 0.095 -9.52 720.3 -34.48 84.4

Sycal Ventures Bhd 0.180 5.88 91.5 2.86 74.9 Sealink International Bhd 0.095 -9.52 385.0 -32.14 47.5

Data as compiled on May 24, 2022 Source: Bloomberg Data as compiled on May 24, 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)

Lee Swee Kiat Group Bhd 0.83 0.160 1798.9 1.22 134.3 Nestle Malaysia Bhd 133.300 -0.900 109.8 -0.67 31258.9

Fraser & Neave Holdings Bhd 20.72 0.160 202.1 -16.25 7599.7 Malaysian Pacific Industries 30.040 -0.760 124.3 -39.14 5974.8

Berjaya Food Bhd 4.35 0.150 935.4 102.33 1568.3 Hengyuan Refining Co Bhd 6.600 -0.700 9137.2 70.54 1980.0

QL Resources Bhd 4.88 0.150 257.9 6.78 11876.2 Petron Malaysia Refining & MKT 6.700 -0.530 2187.1 52.97 1809.0

Seremban Engineering Bhd 1.24 0.120 58.5 -1.59 98.8 Kuala Lumpur Kepong Bhd 25.900 -0.520 1968.9 18.92 27924.2

Harrisons Holdings Malaysia Bhd 5.98 0.110 1.1 24.58 409.5 Petronas Dagangan Bhd 20.900 -0.500 404.1 1.46 20763.2

Malaysia Airports Holdings Bhd 6.52 0.110 2604.0 9.03 10817.9 Ta Ann Holdings Bhd 5.150 -0.450 5629.9 46.72 2268.4

Keck Seng Malaysia Bhd 3.96 0.100 14.5 15.12 1422.8 British American Tobacco M Bhd 12.760 -0.220 163.4 -8.73 3643.4

Malaysia Smelting Corp Bhd 3.70 0.100 859.3 13.85 1554.0 Kobay Technology BHD 3.260 -0.210 1431.2 -45.94 1056.8

Cycle & Carriage Bintang Bhd 2.50 0.080 79.2 16.82 251.9 Batu Kawan Bhd 27.500 -0.200 9.5 21.15 10827.4

Pecca Group Bhd 3.00 0.070 675.4 -12.28 577.3 AEON Credit Service M Bhd 15.100 -0.200 57.4 10.87 3855.1

Innoprise Plantations BHD 1.88 0.060 1578.6 45.74 900.3 United Plantations BHD 14.400 -0.180 374.1 5.06 5951.5

UMW Holdings Bhd 3.35 0.060 97.5 12.79 3913.8 Cypark Resources Bhd 0.500 -0.160 22766.1 -45.05 294.4

Hong Leong Bank Bhd 21.12 0.060 1469.9 13.43 45782.2 IHH Healthcare Bhd 6.400 -0.150 3142.5 -12.81 56337.3

Subur Tiasa Holdings Bhd 1.64 0.060 2878.3 56.19 308.8 Thong Guan Industries Bhd 2.320 -0.140 2847.2 -17.14 893.6

Turbo-Mech Bhd 0.83 0.060 14 9.21 89.6 UWC BHD 2.760 -0.130 1819.5 -55.56 3039.8

Boustead Plantations Bhd 1.07 0.060 13465.9 64.62 2396.8 Genting Plantations Bhd 8.180 -0.120 59.6 24.09 7339.1

Scientex Packaging Ayer Keroh 2.39 0.060 13.8 -0.42 782.4 Complete Logistic Services Bhd 3.990 -0.110 6.5 58.96 513.3

Computer Forms Malaysia Bhd 0.87 0.055 4743.7 39.20 178.4 PMB Technology Bhd 3.270 -0.100 488.1 33.14 3904.7

Tambun Indah Land Bhd 1.02 0.055 1864 40.69 446.3 Petronas Gas Bhd 16.380 -0.100 847.8 -8.46 32411.6

Data as compiled on May 24, 2022 Source: Bloomberg Data as compiled on May 24, 2022 Source: Bloomberg