The Edge - 01 Sept 2021

CHINA SLASHES KIDS’ GAMING TIME
TO JUST THREE HOURS A WEEK p21

TUESDAY, AUGUST 31, 2021 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 241/2021

CEOMorningBrief
HOME: Scientex to acquire 250-acre agriculture plot in Jenjarom, its fourth land buy in Selangor p4
Sime Darby teams up with Porsche to assemble sports cars exclusively for Malaysian market p6
Genetec market cap tops RM1.5b as share price hits record high p8
WORLD: Overlooked IPO markets are suddenly booming as China deals slow p25

PHOTO BY SAM FONG/THE EDGE KLANG
VALLEY
CIMB foresees READY TO
10-20 bps net MOVE TO
interest PHASE 2,
margin SAYS PM
expansion ISMAIL
in FY21 SABRI

Report on Page 3. Report on Page 2.

SPECIAL REPORT

NATION-BUILDING
AND THE FUTURE
ECONOMY

TUESDAY AUGUST 31, 2021 2 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30): Prime KlangValley ready dress Covid-19 meeting with the Cabinet,
Minister Datuk Seri Ismail SabriYaakob to move to Phase 2, which he will be chairing.
is of the opinion that the Klang Valley says PM Ismail Sabri
can now move into Phase 2 of the Na- “Once again, I am so proud of everyone
tional Recovery Plan (PPN) as its Cov- Bernama involved in this remarkable achievement,”
id-19 vaccination rate has surpassed the he posted on Facebook today.
80% mark.
Yesterday, Ismail Sabri said the
However, he said the matter will be fi- vaccination rate of the adult popula-
nalised in the Special Committee to Ad- tion in the Klang Valley had reached
89.5%.

Covid-19: New cases drop to 19,268 on Aug 30 as Klang Valley
continues to post lower numbers

BY TIMOTHY ACHARIAM
theedgemarkets.com

KUALA LUMPUR (Aug 30): A total either were not vaccinated or had received 36 new clusters detected, half from
of 19,268 new Covid-19 infections were only one dose of the vaccine. workplaces
reported across Malaysia today, down Dr Noor Hisham said 36 new clusters were
from 20,579 yesterday, as the KlangVal- Also, 97.9% of the new cases reported identified today, with a total of 1,196 infec-
ley recorded a fourth straight decline in today had either no symptoms (Category tions recorded among them.They comprised
daily cases. 1) or little symptoms (Category 2).The bal- 18 workplace clusters which contributed 759
ance 2.1% were spread across Categories 3 cases.There were also 13 community clus-
The latest cases were discovered from (patients with pneumonia), 4 (with pneu- ters which contributed 288 cases.
testing 108,583 individuals across the monia requiring oxygen therapy) and 5
country in the 24 hours as of noon, in- (critical cases needing assisted ventilation). The country has reported 4,709 clus-
dicating a positivity rate of 17.76%. Dr Noor Hisham said the number of pa- ters so far, including 3,222 that have been
tients being treated in intensive care units declared ended, leaving 1,487 that are still
There were also 295 more deaths, of rose to 1,033 from 1,009 yesterday. Of active.
which 53 were brought in dead cases, them, 476 patients are on ventilators.
said Health Director-General Tan Sri CONTINUES ON PAGE 4
Dr Noor Hisham Abdullah in a state-
ment. In all, Malaysia has registered
1.73 million confirmed Covid-19 cas-
es and 16,382 deaths.

Active cases dip
The number of active cases dipped to
265,713 today from 267,997 yesterday,
as daily recoveries of 21,257 outpaced
new infections.This is the fourth day of
decline in active cases since June 25.

Meanwhile, the ministry reported
that 14,664 cases or 76.1% of the new
infections today comprised patients who

Note: Dear readers, there will be no CEO Morning Brief tomorrow (Sept 1) as we are taking a break for Merdeka Day.
We will be back on Thursday (Sept 2). For the latest news during the holidays, check out https://www.theedgemarkets.com/.

TUESDAY AUGUST 31, 2021 3 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30): CIMB CIMB foresees Datuk Abdul Rahman Ahmad said the
Group Holdings Bhd is expecting a mar- 10-20 bps net bank remains concerned and cautious
gin expansion of 10 to 20 basis points (bps) interest margin in 2HFY21, due to potential down-
in net interest margins for the financial year expansion in FY21 side risks of Covid-19 resurgence add-
ending Dec 31, 2021 (FY21), despite fac- ing to the uncertainty surrounding
ing margin pressure in the second half of BY JUSTIN LIM the opening and recovery of regional
financial year 2021 (2HFY21). theedgemarkets.com economies.

Its group chief financial officer Khairul and this is mainly driven by additional “The prolonged lockdown will likely
Rifaie told reporters in a virtual press brief- potential overlays that we’re going to put result in headwinds to operating income
ing that the bank is looking at a margin ex- on as we weather the restructuring and growth coupled with the impact of the
pansion on a year-on-year basis for FY21, rescheduling (RNR) to the loan morato- payment assistance modification loss and
mainly driven by the absence of the neg- rium under the Pemulih programme, as elevated provision,” he added.
ative impact coming from the rate cuts well as the rest of the other regions.
that happened in 2020, coupled with the “Accordingly, we have lowered our loan
group’s liability optimisation in 1HFY21. “[Hence,] we do expect provisions to re- growth guidance for FY21 to between 2%
main relatively elevated for the remainder of and 3% due to the challenging environ-
However, he warned that the bank will the year.And that is a direct impact coming ment,” he concluded.
face some margin compression going into from the moratorium, as we do have a cau-
2HFY21, as the effects of the optimisa- tious outlook, in terms of our asset quality Earlier, CIMB had provided a loan
tion taper off, adding pressure on the cost for the remainder of the year,” he added. growth guidance of 4% to 5% for FY21,
of deposits. CIMB cautious about its outlook for after a 1% contraction in FY20.
2HFY21 amid Covid-19 resurgence
Meanwhile, Khairul also expects credit CIMB group chief executive officer For 1HFY21, CIMB saw its net profit
costs to trend higher with an 80 to 90 bps jump more than four-fold to RM3.54 bil-
guidance when the year ends, compared lion from RM785 million in the previous
with 74 bps in 1HFY21 amid the six- January to June period, lifted mainly by a
month loan moratorium given by banks significant net contribution from excep-
to affected borrowers under the Pemulih tional items, primarily the one-off reval-
programme. uation gain of RM1.16 billion from the
deconsolidation of TNG Digital reported
“So we do expect that credit costs will earlier in the first quarter of financial year
increase in the second half of the year, 2021 (1QFY21).

CIMB 2Q net profit down 56% q-o-q due to reduction in non-interest income

KUALA LUMPUR (Aug 30): CIMB BY IZZUL IKRAM In a separate statement, CIMB group
Group Holdings Bhd’s net profit for the theedgemarkets.com chief executive officer (CEO) Datuk Ab-
second quarter ended June 30, 2021 dul Rahman Ahmad said the group’s
(2QFY21) retreated 55.88% to RM1.08 income (NII) increasing 3.4% q-o-q,” solid performance reflects the progress
billion from RM2.46 billion in the im- it said. made in its Forward23+ strategic plan
mediate preceding quarter, as revenue and momentum from economic recovery
dropped 21.59% to RM4.67 billion from Its consumer banking division posted a experienced earlier in 1QFY21.
RM5.96 billion in 1QFY21. 9.8% quarter-on-quarter drop in profit be-
fore tax (PBT) from RM615 million, while “Despite some tapering of topline
The group proposed a first interim its commercial banking division posted a growth in 2Q21 due to the resurgence of
dividend of 10.44 sen per share, and a 4.4% rise in PBT to RM306 million from the pandemic across the region, the Group
dividend reinvestment scheme (DRS) RM293 million, on higher NII and lower benefited from positive earnings recovery
to allow shareholders to reinvest their operating expenses; the group’s wholesale in 1H21, after taking into account the low
dividends in new CIMB shares. banking division’s PBT expanded 8.5% base effect from a year ago, driven by im-
q-o-q on the back of lower provisions. provement in NIM, continued cost focus
In a bourse filing, the group attrib- and lower provisions across the Group,”
uted the drop in earnings mainly due to On a year-on-year basis, CIMB’s net he added.
the high base results of 1QFY21, which profit jumped from RM277.08 million in
came on the back of a one-off revalu- 2QFY20, while revenue rose 20.9% from On prospects,Abdul Rahman said the
ation gain of RM1.16 billion from the RM3.87 billion. group remains cautious due to the po-
deconsolidation of TNG Digital; this tential downside risks in the second half
was partially offset by RM258 million For the first half of the financial year of the financial year, primarily due to the
mainly related to the write-off and ac- (1HFY21), CIMB recorded a net profit of uncertainty surrounding the opening of
celerated amortisation of intangible as- RM3.54 billion, a more than four-fold jump regional economies and economic recov-
sets in 2QFY21. from the RM785 million reported in the same ery due to the Covid-19 Delta variant.
period last year, while revenue grew 32.7%
Excluding the one-off revaluation to RM10.63 billion from RM8.01 billion. CIMB’s share price closed two sen or
gain in 1QFY21, net profit was 4.2% 0.41% lower at RM4.91 today, valuing
lower from RM1.34 billion, while op- “The improvement in performance was the group at RM49.17 billion.
erating income slipped 2.7% from driven by higher operating income, strong Read also: TnG Digital raised US$75m
RM4.80 billion. “This was due to an cost containment and significantly low- from AIA and BowWave Capital Manage-
18.8% reduction in non-interest in- er provisions compared to the lower base ment, says CIMB group CEO Click here
come (NOII) from weaker fees and results recorded in 1HFY20, which were
trading income, despite net interest affected due to the economic disruption
of Covid-19,” the group said.

TUESDAY AUGUST 31, 2021 4 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30): Scientex Scientex to land, with its GDV yet to be determined.
Bhd is expanding its KlangValley footprint acquire 250-acre The acquisition is subject to approval
via the proposed acquisition of over 250 agriculture plot
acres of agriculture land near Klang and in Jenjarom, its by the Estate Land Board and the Eco-
Banting for RM207.56 million. fourth land buy nomic Planning Unit of the Prime Min-
ister’s Department, and is targeted to be
The plastic packaging manufacturer in Selangor completed in the second half of year 2022.
and property developer said it is buying the
freehold land in Jenjarom from Seriemas BY TAN SIEW MUNG The purchase, the group said, will be
Development Sdn Bhd, a wholly-owned theedgemarkets.com financed by internally generated funds and
subsidiary of Permodalan Nasional Bhd. bank borrowings.

Scientex said this is its fourth land acquisi- “The proposed land acquisition is an op-
tion in Selangor, and follows the overwhelm- portunity for Scientex to increase our ex-
ing response from its property launches in isting landbank in Selangor, especially after
Kundang Jaya and Rawang developments. the encouraging take-up for our current de-
velopments in Kundang Jaya and Rawang,
“The group’s upcoming project launch which reiterated our belief in the underlying
in Selangor next year spans 139 acres in resilient and robust demand for affordable
Cheras,” it added in a statement. homes,” said Scientex CEO Lim Peng Jin.

Scientex has delivered properties worth “The strategic location of the proposed
about RM7.1 billion in gross development land, with easy access via several expressways
value (GDV) since the inception of its and its proximity to vibrant towns such as
property development segment in 1995, Klang and Banting, indicates its potential
the group said. as a budding new township, and provides
us the opportunity to generate greater eco-
“All affordable homes completed were nomic value in the state,” he said.
priced below RM500,000 each, with more
than 70% of these homes priced below Lim said the group has to-date com-
RM300,000 per unit,” it added. pleted about 25,300 affordable homes in
Peninsular Malaysia, surpassing the half-
Currently, Scientex’s ongoing proper- way mark en route to its 50,000 affordable
ty projects have a total GDV of RM2.2 homes target by 2028.
billion across its developments in Johor,
Melaka, Selangor, Perak and Penang. Scientex’s share price closed three sen
or 0.67% higher at RM4.48 today, valuing
The group said it plans to launch a the group at RM6.9 billion.
mixed development project on the Jenjarom

FROM PAGE 2 Ringgit rallies US$ vs ringgit
against US
44.9% of Malaysians fully 3.9
vaccinated as of Aug 29 dollar, jumps 360
A total of 19.39 million people or 59.4% of basis points 4.0055
the nation’s population had received at least 4.0
the first dose of their Covid-19 vaccine as of Bernama
Sunday (Aug 29), including 14.65 million 4.1
or 44.9% who were fully inoculated. KUALA LUMPUR (Aug 30):The ring- 4.1552
git ended stronger against the US dollar,
In the KlangValley (Selangor, Putrajaya as fears over tapering by the US Federal 4.2
and Kuala Lumpur), 6.84 million individu- Reserve (US Fed) wane with a longer
als or 81.2% of the region's population had path to higher rates expected. 4.3 Jan 4, 2021 Aug 30, 2021
received at least one dose of the Covid-19
vaccine, while 5.56 million people (66.1% At 6 pm, the local note jumped 360 Source: Bloomberg
of population) were fully inoculated. basis points to 4.1530/1575 versus
the greenback from Friday’s close of for the ringgit,” he told Bernama.
Cumulatively, 34.03 million Cov- 4.1890/1930. Meanwhile, the local note was traded
id-19 vaccine doses had been adminis-
tered as of Sunday, after 302,804 dos- Bank Islam Malaysia Bhd economist higher against a basket of major currencies.
es were administered — down from Adam Mohamed Rahim said US Fed The ringgit appreciated vis-a-vis the
336,642 the day before. chairman Jerome Powell’s speech high-
lighted that tapering might begin at the euro to 4.9001/9054 from Friday’s close
Read also: end of this year but that did not mean of 4.9254/9301, rose against the Japanese
that rate hikes would happen early. yen to 3.7813/7854 from 3.8044/8084,
New extremely mutated Covid-19 climbed against the British pound to
variant detected in South Africa — “Perhaps the swearing-in ceremony of 5.7116/7178 from 5.7427/7482 and im-
report Click here the new Cabinet ministers also instilled proved at 3.0848/0886 versus the Singa-
confidence among investors towards Ma- pore dollar compared with 3.1009/1041
Cansino and Sinovac vaccines for six laysia’s leadership and provided support at Friday’s close.
states with less than 50% of people
vaccinated, says Dr Adham Click here

TUESDAY AUGUST 31, 2021 5 THEEDGE CEO MORNING BRIEF

TUESDAY AUGUST 31, 2021 6 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30): Sime Dar- Sime Darby teams pleased to extend our relationship with
by Bhd is collaborating with Porsche AG up with Porsche Porsche from retail and distribution to in-
to assemble the latter’s sports car for the to assemble sports clude assembly,” he added.
Malaysian market only.
cars exclusively for Meanwhile, Porsche AG’s member of
The cars will be assembled at Sime Dar- Malaysian market the executive board for sales and marketing
by’s motor vehicle and production and fa- Detlev von Platen said the luxury carmaker
cility — which will be the first assembly theedgemarkets.com is looking forward to its locally-assembled
plant of the German sports car manufac- cars reaching Malaysian customers next year.
turer outside of Europe — with production
slated to start in 2022. “As Porsche is moving into a new era
of mobility, Malaysia and the ASEAN re-
In February, The Edge reported that gion are gaining an increasing importance.
Porsche was partnering with Inokom Cor- This step now is part of a long-standing
poration Sdn Bhd — a subsidiary of Sime initiative to keep pace with rapidly evolving
Darby Motors, which is in turn a subsidi- customer and market demands.”
ary of Sime Darby — to set up an assembly
plant in Kulim, Kedah. Meanwhile, Jeffri assured that each
Porsche assembled by Sime Darby will go
“This partnership with Porsche marks through the same rigorous standards and
the coming of age of our relationship with processes as its European counterparts.
the brand.To be entrusted to assemble cars
for one of the world’s most admired sports “Quality will be a shared key commitment
car brands speaks volumes about the highly between Porsche AG and Sime Darby to all
qualified and competent Malaysian talent we our customers in assembling Porsche vehicles.
have at Sime Darby and our ability to provide We will continue our close engagement with
meaningful value to our partners,”Sime Darby Porsche AG to ensure that we meet the Por-
Bhd group chief executive officer (CEO) Da- sche standard every step of the way,” he added.
tuk Jeffri Salim Davidson said in a statement.
At the noon break today, Sime Dar-
“The assembly portfolio is a key ele- by settled four sen or 1.7% higher at
ment in our growth strategy, and we are RM2.39, giving it a market capitalisation
of RM16.19 billion.

KUALA LUMPUR (Aug 30): Petroliam Petronas small fields abroad could be deployed in
Nasional Bhd (Petronas) has inked two awards two SFA the Rhu-Ara fields to unlock the potential
new small field asset (SFA) production in the Penyu Basin followed by the devel-
sharing contracts (PSCs) with Rex Inter- PSCs to Rex opment of the Diwangsa cluster.
national Holding Ltd and Duta Marine International,
Sdn Bhd for the Rhu-Ara and Diwangsa Duta Marine “We welcome new players who can de-
clusters offshore Peninsular Malaysia. liver innovative solutions to ensure the low-
Bernama est total life cycle cost in developing the
The national oil company said the discovered resources opportunities avail-
award of these PSCs marked Rex Inter- Rhu-Ara cluster and 10.7 MMstb for the able in Malaysian waters.
national’s maiden entry into Malaysia’s up- Diwangsa cluster.
stream industry, in partnership with local “We are pleased to see that the SFA
company Duta Marine. “Both clusters are now primed for de- terms have become more attractive to the
velopment under the SFA PSC terms investors, thus validating the efforts taken
It said Rex International, which held 95% which incorporate a simplified fiscal model to turn Malaysia into a growth hub for the
participating interest with Duta Marine hold- and governance process,” it said. investors,” he added.
ing the remaining 5% in both PSCs, brought
to the table significant operating experience Malaysia Petroleum Management sen-
and expertise in developing and producing ior vice president Mohamed Firouz Asnan
small oil fields in the Middle East as well as said Petronas believes that Rex Interna-
participation in joint ventures in the North Sea. tional’s proven capability in developing

Petronas said these fields were offered
during the Malaysia Bid Round 2020 based
on the SFA fiscal terms introduced in the
same year that intensified Petronas’ com-
mitment to monetising small discovered
resource opportunities in Malaysian waters.

It said the Rhu-Ara cluster, consisting
of Rhu and Ara fields, lies within the Penyu
Basin, 150km off the coast of oil centre
Kerteh, Terengganu while the Diwangsa
cluster, which lies in the north-western side
of the Malay Basin, comprises Diwangsa,
Bubu, Korbu, and Lerek fields.

“These previously discovered fields have
total estimated recoverable of 12.7 Mil-
lion Stock Tank Barrels (MMstb) for the

TUESDAY AUGUST 31, 2021 7 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30): FGV Hold- FGV 2Q net its mitigation effort in managing the risk of
ings Bhd has posted a soaring growth of over profit soars infections at its operating locations.
16 times year-on-year in its net profit for over 16 times
the second quarter ended June 30, 2021 to RM338.8m “We are currently at the final stage of
(2QFY21) to RM338.82 million, from acquiring the vaccines and shall commence
RM20.55 million previously, mainly attrib- BY EMIR ZAINUL the vaccination programme by the first
uted to increased palm products margin, im- theedgemarkets.com week of September 2021,” he said.
proved gross profit margin for its sugar busi-
ness, as well as higher throughput and cargo RM121.8 million during the same peri- On its prospects, Mohd Nazrul pointed to
volume handled by its logistics business. od last year, as its revenue grew 32.9% to FGV’s recent memorandum of collaboration
RM8.08 billion from RM6.08 billion. with Felcra Bhd and Qatar-based Baladna
In addition, the group reported fair val- Food Industries, to carry out a comprehen-
ue gain on land lease agreement (LLA) Earnings per share stood at 8.3 sen, sive feasibility and technical study on an op-
of RM180 million compared to fair value against losses per share of 3.3 sen. portunity to potentially co-invest in an inte-
charge on LLA of RM76 million registered grated dairy farm business in Chuping, Perlis.
in the previous corresponding quarter, attrib- To address the ongoing Covid-19 pan-
uted mainly to the revision in the yield as- demic, FGV’s newly appointed group chief He said the collaboration is intend-
sumption used in arriving at the LLA liability. executive officer Mohd Nazrul Izam Man- ed to deliver sustainable value for FGV’s
sor said the group is expediting its vaccina- stakeholders, better livelihood for the lo-
For its plantation business, FGV re- tion programme for all workers as part of cal community, and address food security
corded higher average crude palm oil concerns for the country.
(CPO) price realised of RM3,333 per
metric tonne (MT), which is 44% high- “The potential initial areas of collabo-
er compared to average CPO price realised ration include doubling the current pro-
in 2QFY20 of RM2,309 per MT. duction of Malaysian fresh milk within two
years, and creating a farm for ten thousand
Earnings per share rose to 9.3 sen from milking cows with an annual production of
0.6 sen as a result. 100 million litres of milk per year.

According to its filing with Bursa Ma- “Other potential areas include utilis-
laysia today, quarterly revenue stood at ing Malaysian agricultural land to pro-
RM4.68 billion, up by 42.1% from RM3.29 duce largely the required animal feed for
billion recorded in the same quarter last year. the dairy farm, as well as using the joint
venture farm as a hub that supports small
For the first half of the financial year rural farms in developing small cattle fat-
(1HFY21), FGV recorded a net profit tening farms and animal feed farms by
of RM303.4 million against a net loss of 2024, among others,” Mohd Nazrul added.

FGV to focus on fair labour practices to resolve US import ban issue

KUALA LUMPUR (Aug 30): FGV BY EMIR ZAINUL In a separate bourse filing today, FGV
Holdings Bhd has reiterated its com- theedgemarkets.com said it is extending its timeline of August
mitment to focus on enhancing its la- 2021 to September 2021 to finalise the ap-
bour practices under its affiliation to Group Sustainability Division head Nurul pointment of the independent auditing firm.
US-based Fair Labor Association (FLA). Hasanah Ahamed Hassain Malim.
“It is imperative that FGV identifies
This is to address the Withhold Re- However, Nurul Hasanah added that and appoints an organisation that would
lease Order (WRO) issued by the US an independent external assessment by be the best fit to conduct an audit that
Customs and Border Protection (CBP) FLA involving on-the-ground assessments, meets the expectations of the CBP and to
against its palm oil and palm oil prod- which was scheduled to be conducted in ensure that the proposals also fulfil FGV’s
ucts, the plantation giant said. July, has been tentatively postponed to No- requirements. FGV has requested the nine
vember due to the pandemic. organisations to revise and resubmit their
In a virtual press conference today, proposals. FGV has also recently appoint-
FGV said the implementation of FGV- Nine groups submit proposals to audit ed a US-based legal firm to provide sup-
FLA action plan is ongoing to improve FGV’s ops port in this process and in FGV’s overall
labour practices covering various aspects Nurul Hasanah also updated that FGV has effort to address theWRO,” it added.
including recruitment process, human received proposals from nine organisations
rights training, grievance mechanism and to be its independent audit firm to conduct Nurul Hasanah also confirmed that
monitoring systems. an assessment of the group’s operations theWRO is still in effect and is impacting
against the 11 International Labour Or- FGV’s indirect business through its stake-
“We have been working together ganization indicators of forced labour, as holders and customers in the US. How-
with a few other NGOs also under the recommended by the CBP. ever, she highlighted that FGV’s direct
umbrella initiative with FLA, including exposure to the US market is “very small”.
Tenaganita, to enhance the knowledge “Of course we want it to be addressed
and awareness of our migrant workers immediately, but the timeline will only be On Sept 30 last year, the CBP an-
with regards to their rights. confirmed upon the finalisation of the ap- nounced a ban on palm oil imports from
pointment of the auditor. So we would say it’s FGV following a year-long investigation into
“We are currently working on enhancing between six to nine months upon the appoint- allegations that the plantation group used
our previous mechanisms to ensure that our ment of the auditor,” she said on the estimat- forced labour.The CBP also raised concerns
workers have a direct avenue to lodge their ed timeline to resolve the matter with CBP. that forced child labour was potentially used
complaints or raise any issues through tech- in FGV’s production processes.
nology to the management,” said FGV’s

TUESDAY AUGUST 31, 2021 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (Aug 30):The market Genetec market company attributed the increase in net
capitalisation of GenetecTechnology Bhd has cap tops RM1.5b profit to higher sales volume and improved
swelled past RM1.5 billion as the industrial as share price hits operational efficiency, coupled with the ab-
automation specialist’s share price hit as high sence of one-off expense of RM2.8 million
as RM31.12 amid active trades this morning. record high in respect of share-based payment arising
from the granting of share options to eli-
The stock, which closed at RM29.10 BY CHERYL POO gible directors and employees.
last Friday (Aug 27), eventually settled at theedgemarkets.com
RM31.10 — a record high closing price — af- The group said it achieved a strong or-
ter gaining RM2 or 6.9%.Its latest share price Genetec Technology Bhd der book primarily from the electric vehicle
gives it a market capitalisation of RM1.597 (EV) sector, which has significantly con-
billion.The stock has climbed RM29.37 or 35 RM tributed positively to the performance of
1,697% from RM1.73 at end-2020. RM31.10 the current quarter and will be expected
to continue performing in the subsequent
It is unclear what is driving the rally in 28 quarters barring unforeseen circumstances.
Genetec’s share prices — its latest bourse
announcement concerned 249,000 options 21 “Despite the current challenging market
under the Employee Share Option Scheme condition, the group remains committed to
(ESOS) exercised at RM1.37 apiece, wid- 14 strictly controlling its project quality and
ening its share capital to 51.35 million. efficiency with our operational and key per-
7 RM1.80 Aug 30, 2021 sonnel executed well to fulfil timely delivery
Genetec’s share price rally has also bene- 0 commitments to our customers,” it said.
fitted the company’s directors and employees
who have been granted ESOS with a total of Jan 4, 2021 Besides strengthening its research and
about 2.33 million ESOS options having been development capabilities, the group said it
exercised since Feb 5 as part of the 6.59 mil- Source: Bloomberg will further expand its cooperation with key
lion ESOS options offered in October 2020. global customers to seize opportunities cre-
RM2.1 million in the same period last year ated by the current trend of EV and auton-
According to Bursa filings, directors and RM5.7 million in the previous quar- omous driving to strengthen its position in
granted ESOS options were managing di- ter. Revenue more than tripled to RM40.3 the industry and enhance its market share.
rector Chin KemWeng (560,000), chief op- million from RM12.4 million year-on-year
erating officer Sow Ewe Lee (500,000), ex- and RM13 million quarter-on-quarter. To recap, the company had placed out
ecutive directorTan MoonTeik (500,000), two blocks of shares in June when its share
non-executive director Hew Voon Foo In its filing with Bursa Malaysia, the price retreated from the RM5-level, which
(100,000) and independent non-executive was the all-time high then. One block of 2.28
director Teh Kim Seng (100,000). million shares was placed out at RM3.42
apiece, while another block of 2.29 million
Last month, Genetec reported that shares was placed out at RM3.33 per share.
for the first quarter ended June 30, 2021
(1QFY21), it returned to the black with The return of the share placements is
RM8 million net profit from a net losses of more than 600% in about two months.

KUALA LUMPUR (Aug 30): M3 Tech- M3Technologies’ those alleged dubious transactions would
nologies (Asia) Bhd’s external auditor auditor issues not have material financial impact on cur-
Messrs Ecovis Malaysia PLT has expressed rent period financial statements,” it added.
a qualified opinion in the company’s au- qualified opinion
dited financial statements for the financial on FPE21 financial Ecovis Malaysia noted that however, at
period ended March 31, 2021 (FPE21). the date of approval of the financial state-
position ments, the investigative auditor was in pre-
On March 25, M3 Tech had changed its liminary stages of review.
financial year end from Dec 31 to March 31, theedgemarkets.com
which it attributed the change to insufficient Consequently, it was unable to determine
time to appoint a new auditor following the and the potential financial impact. the potential financial impact, if any, to the
resignation of Jamal, Amin & Partners as its “Based on the directors’ assessment, im- group and the company in respect of those
auditor.Thus, FPE21 will be for a period of 15 alleged dubious transactions and whether
months from Jan 1, 2020 to March 31, 2021. pairment losses on trade receivables related to any adjustments might be necessary to the
these alleged dubious transactions amounted impairment losses amounting to RM985,061
According to the independent auditor’s to RM985,061 have been recognised dur- recognised by the group in FY19, and trade
report attached with M3 Tech’s filing with ing FY19. receivables and opening balance of retained
Bursa Malaysia today, Ecovis Malaysia said earnings as at Jan 1, 2019.
the basis for its qualified opinion was due to “The directors also assessed that any po-
the ACE Market-listed mobile value added tential losses in connection with those al- Meanwhile, M3Tech said it will follow up
services provider appointing an independ- leged dubious transactions have been fully the investigation conducted by the investigative
ent investigative auditor to review specific recognised during FY17 to FY19 and all auditor. “Any material development in this
transactions and related accounting entries outstanding balances, if any, relating to those matter will be disclosed accordingly,” it said,
in the financial years ended Dec 31, 2017 alleged dubious transactions have been ful- adding that it expects to resolve the issue re-
and 2018 (FY17 and FY18) to ascertain ly reversed or impaired as at Dec 31, 2019. lating to the matters above within two months.
whether there were any fraudulent trans- Accordingly, the directors concluded that
actions involved in M3 Tech’s business op- M3Tech shares closed down 0.5 sen or
erations and certain of its subsidiaries and 7.69% at 6 sen today, bringing a market
any irregularities involving a former director capitalisation of RM49.93 million. Its share
price has fallen 57.14% over the past year
from 14 sen on Sept 1, 2020.

WEALTH TUESDAY AUGUST 31, 2021 9 THEEDGE CEO MORNING BRIEF
INSIGHT
BROUGHT TO YOU BY

China’s regulatory crackdown — what is next?

2021 marks a century since the China to teach courses and advertising Bringing home successful list in the US for the foreseeable future. ing its dominance in keyinnovative areas
founding of China’s Commu- on various media platforms. companies All this adds a new page to China’s rule- such as electric vehicles, green energy
nist Party,and the country has book in managing its widely successful and big data.
widely celebrated its remarkable These new clauses devastated the Two days after Chinese ride-hailing pio- tech companies.
recoveryfrom the Covid-19 pan- private education sector in China. But neer Didi’s listing debut in the US in June, China is also pushing towards
demic and rapid transformation theyare alignedwith the Chinese govern- the Chinese government announced a In the past, Chinese tech giants, self-sufficiency. Import substitution
into a global superpower.China was the ment’s agenda to curb rising education series of enforcement actions against such as Alibaba,JD.com and Baidu Inc, trend across the country’s technolog-
first country to overcome the pandemic costs — which is partly contributing to the company over alleged misuse of would conduct listings in the US.As at ical value chain has fuelled an upcycle
and restart its economy. It was also the the nation’s declining birth rates — and customer data.Didi’s ride-hailing appli- July 2021,248 Chinese companies were in the industrial automation sector.The
only major economy in the world that alleviate academic pressure on students. cation was swiftly taken off various app listed on various American exchanges Chinese government also focuses on
experienced growth in 2020. stores,with Chinese media suggesting with a total market capitalisation of the industrial Internet of Things (IoT)
While China is expected to enjoyGDP While the crackdown in the education that the regulators could impose severe, US$2.1 trillion. But with the launch of by supporting high-tech companies to
growth once again in 2021 and 2022,there sector occurredwhen technologycompa- perhaps even unprecedented,penalties the Starboard in Shanghai and the in- develop their own technology and brand
are signs that the country’s policymakers nieswere under increasing scrutiny.RHB on the company.That could be a fine,the troduction of dual-class share listings recognition.
are looking further ahead and preparing believes they are entirely separate issues. suspension of certain of its business op- in Hong Kong in 2019,it is evident that
the country to prosper in a post-pan- And given that it addresses key social erations or the introduction of a state- Chinese authorities are keen to move While RHB acknowledges that recent
demic world. concerns,it was generally well received owned investor. these big companies back home to keep changes made by the Chinese govern-
Reading between the tea leaves,RHB by the Chinese population. a closer eye on them. ment have caught the market off guard,
believes the government remains com- A forced delisting or withdrawal of it is essential to understand that these
mitted to their 2035 long-term objectives Stricter regulations may appear neg- Didi’s US shares was also deemed pos- The path forward changes are positive for the country’s
and targets listed out in the next Five- ative at first glance, leading to spooked sible, although it is unclear how such long-term development.
Year Plan (2021-2025) in the 5th Plenum investors selling their holdings.However, an option would play out.Deliberations To fully assess the impacts of regulatory
meeting in October 2020. The route to RHB believes the Chinese government is of such an action being taken are cur- changes implemented by the Chinese While investors are likely to be con-
achieving these goals,however,mayhave targetting “grey areas” in existing rules rently at the preliminary phase and the government on the country’s economy, cerned,we would like to urge for calm.
shifted somewhat. and regulations that have historically outcomes are far from certain. we must understand what the Chinese Chinese companies that can adapt and
Observing the slew of new regulatory been used to tolerate regulatory incon- government is targeting for the future. evolve in this new regulatory environ-
measures implemented by the Chinese sistency or ambiguity. It is easyto dismiss this as an isolated ment will prosper under the more de-
government this year,RHB believes that its event, where the Chinese government Before the pandemic, the strained fined framework endorsed by the Chi-
core policy objective has moved to “Com- China’s move to tighten regulations has retaliated against Didi’s decision relationship between China and the nese authorities.
mon Prosperity”.Its focus is to uplift the on its most prominent tech companies to go ahead with its US listing despite US — marked by former US president
overall wellbeing of the citizens rather is also very similar to how the Europe- resistance from the Cyberspace Admin- Donald Trump’s blanket tariff list and At RHB,our Relationship Managers
than to enrich specific segments of society an and US governments regulate their istration of China.But RHB believes this tit-for-tat retaliatory measures between and Investor Specialists stand ready to
first for subsequent trickle-down effects. tech giants. On July 9, US President Joe signals the start of the Chinese govern- the two countries — was the most criti- advise you on the investment strategy
The series of regulatory measures have Biden signed an executive order target- ment taking the reins of the IPO desti- cal factor in relation to global economic riding on the potential opportunities in
taken the market by surprise,given that ing Big Tech to boost competition and nations of its widely successful private performance.There were hopes that the China to achieve your financial goals.
theyaffect avarietyof keysectors such as reduce anti-competitive practices. The tech companies. two countries would resolve their dif- Scan the QR code below to leave your
internet,education and property.However, EU’s Antitrust Commission and the US ferences with a more moderate Biden contact details with us so we may ad-
understanding the long-term goal of the FederalTrade Commission have also tak- Triggered by Didi’s listing in the US, administration. dress your concerns.
regulators is key to the interpretation of en action to reduce the influence of large Chinese authorities announced new
the recent changes. corporations such as Amazon, Google rules that requires almost all domestic Indeed, the discourse among both Invest with RHB Premier to
RHB believes that these changes are and Facebook. companies seeking to list in foreign countries has become more cordial and unlock wealth opportunities.
positive for the future of the Chinese econ- domiciles to undergo an extensive cy- diplomatic,but they remain far apart as
omy and that theywill happen sooner or RHB believes that the Chinese gov- bersecurity review.Companies holding each side holds on to its respective trade Join RHB Premier today.
later.The current market blips are merely ernment does not wish to fully curtail data of more than one million users demands.With political discourse yield- Scan
short-term “side effects”. the growth of its vibrant private tech must obtain cyber-security approval ing little results,it is only logical that the
sector,given that it has long kept a more as such information could be “affected, Chinese government continues to reduce Visit any RHB Premier Centre
A year of regulatory changes laissez-faire approach which has yielded controlled,and maliciously exploited by foreign dependence in its key economic
benefits for both private and public sec- foreign governments”. areas by acting more protectionist and
As part of its “Common Prosperity” in- tors. Instead, based on the conciliatory nationalistic.
itiative, the Chinese government has tone by the targeted companies,it seems In addition,the cybersecurity review
tightened its regulations to ensure social more likely that the government and will also examine the potential national The gap between the US and China in
equality and reduce the financial burden Big Tech are looking to find a mutually security risks arising from foreign IPOs. the global hierarchical order has never
for its people. This year, policy actions beneficial partnership rather than have This would make it extremely difficult been narrower.And China is looking to
were taken against internet,propertyand a full-on battle. for any Chinese technology company to enhance its global influence by expand-
education companies — sectors that are
closely related to every individual.

The regulatory crackdown on the
country’s internet sector took centre
stage, given the high profiles of the in-
ternet giants.China has long been trying
to prohibit monopolistic acts within the
internet sector.Shortly after the Chinese
regulators issued anti-monopoly guide-
lines in March,a record-breaking fine of
US$2.8 billionwas imposed onAlibaba for
anti-monopolyviolation.TheAnt Group
was revamped and turned into a finan-
cial holding company overseen directly
by China’s Central Bank.

Separately,the US$100 billion Chinese
education sector was subjected to key
rule changes, and the strict regulations
imposed onvarious companies came as a
surprise to the market.For instance,exist-
ing afterschool institutions (ASTs) must
be registered as not-for-profit institutions,
and foreign capital is not allowed to con-
trol or participate in their shares.ASTs
are also banned from providing classes
on weekends, hiring foreigners outside

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KUALA LUMPUR (Aug 30): AMMB AmBank posts on the loosening of movement restrictions
Holdings Bhd (AmBank) today announced 5.9% growth in coupled with the timely completion of the
a 5.9% growth year-on-year in its net profit 1Q net profit on nationwide vaccination drive.
for the first financial quarter ended June higher net income,
30, 2021 (1QFY22) to RM386.6 million, lower operating As such, he said AmBank Group will
despite recording a slightly lower revenue, continue to place customer needs at the
mainly as it saw higher net income and low- expenses forefront while spearheading new paradigm
er other operating expenses (opex). shifts in an increasingly dynamic and dig-
BY EMIR ZAINUL ital banking environment, and at the same
Quarterly revenue fell 5.3% to RM2.1 theedgemarkets.com time observe good cost discipline.
billion from RM2.21 billion in 1QFY21,
its bourse filing today showed. KENNY YAP/THE EDGE “We have been clear about the impor-
tance of continually reviewing all aspects of
In a statement, AmBank said net in- pre-emptive overlay totalling RM832.7 mil- our businesses to ensure alignment with our
come grew RM79.9 million, mainly from lion since the very first Movement Control strategic aspirations.This is imperative in or-
higher net finance income due to higher Order (MCO) in March 2020,” he said. der to strengthen our base and devote our
volume and margin impact, coupled with attention to growing our core banking busi-
higher fee income fromWealth and Cards. On prospects, Sulaiman said an eco- nesses,” he said.
Opex, meanwhile, fell amid lower market- nomic rebound is expected to be reliant
ing spend, depreciation costs and lower He pointed to the group’s recently an-
service transfer pricing expenses. nounced disposal of AmGeneral Insur-
ance Bhd (AGIB) to Liberty Insurance
The growth in its quarterly earnings, Bhd (LIB) in a deal valued at RM2.29
however, were partly offset by higher net billion, which will see AmBank receive cash
impairment, mainly from provision on that will contribute directly to its CET1
loans, advances and financing, mitigated while it retains a 30% equity stake in the
by higher recoveries. combined businesses of AGIB and LIB.

AmBank group chief executive of- “While we have commenced FY22 with
ficer Datuk Sulaiman Mohd Tahir said an encouraging start, we remain cautious
the group foreesees an increased impair- of Malaysia’s economic outlook for the
ment risk to its credit portfolios, which remainder of the year as we do our best
will only become more apparent in the to anticipate the impact of the full MCO
latter part of FY22. and the recently announced six-month loan
moratorium,” he added.
“Our mitigatory efforts continue to be
in place.We are steadfast in our practice of At 2.47pm, AMMB fell one sen or
credit vigilance. Accordingly, our prudent 0.33% to RM3.01, giving it a market cap-
and proactive stance has seen us set aside a italisation of RM10 billion.

KUALA LUMPUR (Aug 30): Mah Sing Mah Sing’s 2Q The group is also eyeing more land as
Group Bhd’s net profit for the second net profit more part of the strategy for continuous growth,
quarter ended June 30, 2021 (2QFY21) than tripled to with Greater Kuala Lumpur, KlangValley,
more than tripled to RM40.4 million from RM40m on higher Johor and Penang being the focus areas. Its
RM12.82 million a year ago, amid high- property sales landbank now stands at 2,045 acres, with
er revenue, as the group recorded strong- gross development value and unbilled sales
er property sales. Revenue rose 46.9% to BY TAN SIEW MUNG totalling about RM24.45 billion, which it
RM438.67 million from RM298.62 million. theedgemarkets.com said provides earnings visibility for at least
eight years as at June 30, 2021.
In a bourse filing, the group said both “Our continuous efforts in adopting dig-
its revenue and operating profit for prop- ital marketing campaigns in the first half of Meanwhile, the group said its healthcare
erty development in 2QFY21 were higher the year have panned out well and put us on business unit, Mah Sing Healthcare Sdn
than 2QFY20, as it saw higher property track to meet our RM1.6 billion sales target Bhd has made steady progress in the com-
sales and revenue recognition of ongoing this year,” said Mah Sing’s founder and group mercialization of its glove manufacturing
property projects under construction. managing directorTan Sri Leong Hoy Kum. business, with its factory in Kapar, Klang,
having commenced operations in May.
For the half year ended June 30, 2021 He also said the two new lands the
(1HFY21), the group’s net profit surged group acquired this year — M Senyum At noon break, Mah Sing fell one sen
94.28% to RM80.68 million, from in Bandar Baru SalakTinggi, Sepang and or 1.21% to 81.5 sen, valuing the group at
RM41.53 million a year earlier, while its M Astra in Setapak — are targeted to be RM2 billion.
revenue grew 27.21% to RM852 million launched in the fourth quarter of 2021. More on corporate earnings:
from RM669.75 million.The group did not “We are confident that they will be well BIMB 2Q net profit rises to
declare any dividend for the latest quarter. received as the demand for the affordable RM184.6m, thanks to absence of
segment continues to persist,” he added. modification loss Click here
Mah Sing said in a statement that it
has successfully recorded new property MPI’s 4Q net profit up 53% on the
sales to-date of about RM1.06 billion back of higher revenue across all
for the first eight months of 2021, while segments Click here
property sales for the first half of 2021
almost doubled to RM800.9 million from
the RM418.6 million it recorded in the
first half of 2020.

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KUALA LUMPUR (Aug 30): Malay- MRCB 2Q net “This impacted construction progress
sian Resources Corp Bhd’s (MRCB) loss narrows that was already limited by ongoing Cov-
net loss narrowed to RM32.42 million y-o-y due to id-19 restrictions, effectively making April
in the second quarter ended June 30, absence of asset 2021 the only production month for the
2021 (2QFY21) against RM220.9 mil- impairment group’s project sites in 2QFY21.
lion in the previous corresponding quar-
ter last year. by Izzul Ikram “Productivity overall was also impact-
theedgemarkets.com ed by disruptions in the building mate-
Quarterly revenue grew 35% to rials supply chain due to lockdowns, as
RM225.75 million from RM167.18 RM27.21 million against RM204.81 well as an ongoing shortage of workers,”
million a year ago. million in the same period a year prior. MRCB added.

The improved earnings were attrib- The narrowing of cumulative net loss In terms of prospects, the group not-
uted to the RM197.4 million provision in 1HFY21 was due to the aforemen- ed that the outlook for the economy and
made for the impairment of contract tioned impairment of contract assets, property market will remain challenging
assets, trades and other receivables it trades and other receivables incurred for the foreseeable future.
incurred a year ago as a result of the in 1HFY20.
Covid-19 pandemic. “This concern is further reinforced
Cumulative revenue dropped near- with the continued increase of Covid-19
To compare on a quarterly basis, the ly 24% to RM452.46 million from infections experienced in Malaysia, and the
group posted a net profit of RM5.2 mil- RM592.94 million last year, largely at- Klang Valley in particular where most of
lion in the immediate preceding quar- tributed to MCO 3.0 and Full Move- the company’s ongoing developments are
ter. The group attributed the net loss to ment Control Order lockdowns and oth- located, and where a Movement Control
site closures due to Movement Control er restrictions, resulting in site closures Order continues to be imposed.
Order (MCO) restrictions. in May and June 2021.
“Nevertheless, construction of the prop-
Quarterly revenue was nearly flat at erty development and investment division’s
RM225.75 million against RM226.71 key ongoing property developments con-
million in the preceding quarter, its tinues to progress during this MCO, albeit
bourse filing showed. at significantly lower productivity levels.”

Meanwhile, for the first half of the MRCB’s share price fell 0.5 sen to close
financial year 2021 (1HFY21), the at 39.5 sen, valuing the group at RM1.76
group’s cumulative net loss shrank to billion.

KUALA LUMPUR (Aug 30): Hong Le- Hong Leong group is cautiously optimistic that local
ong Bank Bhd’s net profit for the fourth Bank’s 4Q net and global economies would enter 2022
quarter ended June 30, 2021 (4QFY21) with better recovery traction.
rose 21.09% to RM689.48 million from profit rises
RM569.42 million a year ago, mainly due to RM689m, Domestically, containment measures
to higher share of profit from associated declares 35.22 sen pose downside risks to growth outlook,
companies and net income. but favourable vaccination rates and
dividend growth in Malaysia’s major trading part-
Quarterly revenue grew 11% to ners, plus accommodative policy meas-
RM1.33 billion from RM1.2 billion, its by Tan Siew Mung ures, should underpin a reasonable level
filing to Bursa Malaysia showed. The theedgemarkets.com of growth going into 2022, he said.
group declared a final dividend of 35.22
sen per share, bringing the total dividend loan or financing expansion and prudent The group, meanwhile, will continue
for FY21 to 50 sen per share, with a div- asset-liability management. to be disciplined in its investments and
idend payout ratio of 36%. expenditure to ensure a cost structure
Net interest income for FY21 was up that enables the group to invest in growth
The group said the increase in prof- y-o-y to RM4.31 billion, resulting in a opportunities that will deliver sustaina-
it was mainly due to higher net income 26-basis-point increase in net interest ble outcomes to its stakeholders, he said.
of RM135.6 million and higher share margin for FY21 to 2.14%, mainly at-
of profit from associated companies of tributed to the group’s efforts in man- At noon break, Hong Leong Bank add-
RM54.8 million; these were mitigated by aging funding cost, loan or financing ex- ed 20 sen or 1.05% to RM19.20, valuing
higher operating expenses of RM11.5 mil- pansion and the absence of modification the group at RM41.19 billion.
lion and higher allowance for impairment loss that was registered in the same pe- More on corporate earnings:
losses on loans, advances and financing riod last year. AirAsia X postpones 2Q earnings
of RM3 million. release to end-September Click here
On business outlook, Hong Leong SKP Resources says prospects remain
For FY21, the group’s net profit in- Bank managing director and chief ex- good as 1Q profit triples on-year, up 6%
creased 14.7% to RM2.86 billion from ecutive officer Domenic Fuda said in a q-o-q Click here
RM2.49 billion in FY20, while its full- statement that the rate of vaccination pro- Lay Hong kicks off new fiscal year on
year revenue climbed 14.4% to RM5.47 gress remains key to economic recovery soft note Click here
billion, from RM4.78 billion. in Malaysia and globally, and that the

Operating expenses for FY21 continue
to be managed, leading to 1.2% year-on-
year (y-o-y) lower opex of RM2.08 bil-
lion, with cost-to-income ratio standing
at 38%, while total income grew 14.4%
y-o-y to RM5.47 billion, on the back of

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Correction to our reports on Aug 13, 2021 in CEO Morning Brief and Aug 10, 2020 in
theedgemarkets.com on what former A-G Tan Sri Ambrin Buang said in court about why

Jho Low’s name was deleted from the minutes of a 1MDB board meeting

ON Aug 13, 2021 during the 1Malaysia theedgemarkets.com Ambrin: No.
Development Bhd (1MDB) audit trial, Shafee: Nobody explained. Now, so
The Edge inadvertently reported the ex- Shafee: Now, you say that if we look at if the company provided you with the
cerpt below: the PAC proceeding report in 2015, that document, you acted on the document.
on Sept 26, (2009),Tan Sri Bakke Salleh Correct?
Former auditor-generalTan Sri Am- verified Jho Low’s presence at the meet- Ambrin: Yes.
brin Buang is the seventh prosecution ing... So I ask you this Tan Sri, so you are Shafee: As far as you are concerned,
witness to testify in the 1MDB audit saying that you were happy to drop Jho that is the proof that you can drop Jho
tampering trial, in which Najib has been Low’s name here because on paper he did Low’s name because he is not officially
alleged to have abused his power, result- not attend the meeting, correct? on record?
ing in omissions during preparation of Ambrin: Yes.
the final 1MDB audit report. Ambrin: Yes. There were minutes of The error originated from last
meeting given by the company (1MDB) year’s report dated Aug 10, 2020,
Shafee: So you can drop Jho Low’s to us. which incorrectly gave the impression
name as he [was] not officially on record? that Tan Sri Bakke had agreed to drop
Shafee: Alright. And these were the Jho Low’s name from the minutes of
Ambrin: Yes. minutes where the chairman who presid- the 1MDB Board Meeting, and is
Shafee:The [meetings were] chaired ed over the meeting was Tan Sri Bakke? much regretted. The Edge apologis-
by [Mohd] Bakke and he was willing es unreservedly to Tan Sri Bakke for
to drop that (Jho Low’s) name and the Ambrin: Yes. all the inconveniences caused due to
minutes were signed? Shafee: Did anyone explain to you the error, and undertakes not to re-
Ambrin: Yes. why Tan Sri Bakke signed the minutes, peat the same.
It has come to our attention that the affirming the minutes, why he was willing
above exchange is not accurate and should read: to drop the name of Jho Low?Why wasn’t
Jho Low’s name mentioned? Did anybody
explain to you?

KUALA LUMPUR (Aug 30): The prose- Prosecution: They added that should the others dis-
cution in the forfeiture hearing against 18 Najib did not pute the claim, they could still apply to re-
individuals and entities to seize more than deny AmBank trieve the assets via third party proceedings.
RM31 million worth of assets and valuables account received
in relation to 1Malaysia Development Bhd illicit money Besides Najib and Rosmah, the gov-
(1MDB) claimed that former premier Da- ernment through the prosecution had also
tuk Seri Najib Razak had failed to rebut facts BY HAFIZ YATIM named their children Nor Ashman Razak
showing that the funds that entered his Am- theedgemarkets.com and Nooryana Najwa, as well as Najib’s step-
Bank 9694 account were from illegal sources. son Riza Aziz as among the respondents.
ZAHID IZZANI MOHD SAID/THE EDGE
Deputy public prosecutors Saifuddin Others included former Goldman Sachs
Hashim Musaimi, Liew Horng Bin and Saifuddin and Liew added that the forfei- banker Roger Ng and his wife Lim Hwee
Harris Ong Jeffrey Ong told the High Court ture action on the others is not an abuse of Bin, fugitive businessman Jho Low’s moth-
that it was impossible for Najib, who has the court process and the court should grant er Puan Sri Goh Gaik Ewe, Mohd Kyiz-
control of the account, to claim that he did the application to seize the said properties. zad Mesran, Senijauhar Sdn Bhd, Aiman
not know the source of the funds was illicit. Ruslan,Yayasan Rakyat 1Malaysia,Yayas-
an Semesta,Yayasan Mustika Kasih and
“A total of approximately RM2.9 billion Rembulan Kembara Sdn Bhd.
had entered into his account. The account
is opened to accept money from Good Star, Besides this, former 1MDB officers Kee
Aabar andTanore, known entities which had Kok Thiam, Tan Vern Tact and Terence
received 1MDB funds,” they said in their writ- Geh Choh Hun, who are said to be close
ten submissions sighted by theedgemarkets.com. associates of Jho Low, were also named
as respondents.
“The testimony in the affidavit by As-
sistant Commissioner R Rajagopal should Among the seized items were 263 hand-
be seen as a continuation and its link to bags, watches, cash kept in the bank, Goh’s
the illegal money as shown by another po- bungalow and several vehicles.
lice officer Superintendent FooWei Min.”
Goh was represented by M Puravalen,
The basis of Foo’s findings,the prosecution while Datuk Tan Hock Chuan appeared
added, is the result of this forfeiture action. for Ng and Lim. Tania Scivetti appeared
for Najib while Iskandar Shah Ibrahim
Saifuddin said just because Najib and and Azamuddin Abdul Aziz appeared for
his wife Datin Seri Rosmah Mansor were Rosmah and her children, including Riza.
facing ongoing charges, does not mean
that the properties could not be forfeited. Justice Mohamed Zaini Mazlan fixed
Nov 8 as the date to deliver his decision.

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Former SRC director Azhar files
third party notice to restore Ismee and

Shahrol as defendants in suit

KUALA LUMPUR (Aug 30): An ex-di- by Hafiz Yatim Counterclaim and defence
rector of SRC International Sdn Bhd has theedgemarkets.com Besides this, Azhar had also today filed
brought a third party notice against Tan his defence and counterclaim to the SRC
Sri Ismee Ismail and Datuk Shahrol Azral Grounds of Azhar’s claim suit, where he emphasised the allegations of
Ibrahim Halmi, who were also members Azhar was SRC director from July 29, 2014 wrongful utilisation and misappropriation
of the company’s board, to reinstate them and subsequently, he resigned on Feb 22, with regards to the RM4 billion KWAP
as defendants in the US$1.15 billion suit 2017. loans took place when he was not the com-
initiated by the former 1Malaysia Develop- pany’s director.
ment Bhd (1MDB) subsidiary, after their In the legal document filed, he claimed
removal last month. that Shahrol was one of the SRC directors “Further, at all material times, I had no
since Aug 1, 2011 and he resigned on May knowledge, or was privy to, or had in any
Datuk Mohammed Azhar Osman 15, 2012. manner participated in the wrongful utili-
Khairuddin is also seeking from the High sation, misappropriation or embezzlement
Court, should he be found liable by SRC in The impugned transactions involving the of the said investment to SRC’s detriment.
its suit, that Shahrol and Ismee either jointly KWAP loan took place during Shahrol’s ten- As apparent in the allegation it took place
or individually fully indemnify him against all ure, which included the subsequent deal- when Shahrol and Ismee were directors of
losses suffered by him and against all dam- ings with the KWAP loans that included the SRC along with Suboh, Nik Faisal, Rashidi
ages that may be awarded against him. transfer of RM3.6 billion and the transfer of and Najib as the shadow director.
US$82,000 to Nik Faisal.
Alternatively, both of them may jointly “The discontinuance of the action and
or separately contribute portions deemed The document also claimed that some its continuing prosecution against me is
fit and proper by the court for losses he US$120 million belonging to SRC was indiscriminate prosecution launched with-
may suffer and against damages that may transferred between 2011 and 2012 to Na- out foundation in fact and in law and in
be awarded against him. jib’s accounts under his control, as well as a bad faith,” he said.
transfer of US$15 million on Dec 27, 2011
He is further seeking costs incurred from to Muraset Ltd from SRC BVI’s account. He further denied having conspired with
defending against SRC’s claim, including le- others with regards to the losses suffered by
gal fees. Azhar’s application was filed by the Meanwhile,Ismee was SRC director since SRC from the KWAP loan and it was wrong
firm of Messrs Chooi & Company + Cheang Aug 1, 2011 and resigned on Aug 15, 2014, for the company to label him as conspirator,
& Ariff at the High Court on Aug 27. when the disbursement of the KWAP’s RM4 a dishonest assistant, or alleged he flouted
billion loan occurred and the subsequent and turned a blind eye in the dealings.
In his third party notice sighted, Azhar transfers of RM3.6 billion from the said loan
claimed there is no basis in law that he be to other entities that the SRC statement of Azhar contended that the SRC suit
made liable or accountable for SRC loss- claim (SOC) stipulates the utilisation of the against him is an actionable abuse of the
es following the proceeds that it received funds had changed its investment structure. court process to vilify him, expose him to
from the Retirement Fund Inc (KWAP) loan opprobrium and scandal; and bring him
which was disbursed to the company on Aug Azhar said as far as he is concerned he to disrepute, out to destroy and damage
29, 2011 and March 28, 2012, when he was denied each and every assertion made by his reputation, standing and career.
not even a director of the company then. SRC as he was not a director of the company
at the material times, or had not dishonestly He further claimed that the suit is
“Hence, in the unlikely event D4 (Azhar) assisted Najib in the misapplication of the deemed as prosecution in a manner that
is found liable for any or all of the SRC’s KWAP proceeds. unfairly burdens him and prejudicial to
claims,he claimed that both Ismee and Shah- him resulting in unjustified trouble and
rol either jointly or severally be found liable “D4 (Azhar) states that there is no basis harassment. Azhar alleges that SRC did
to indemnify or contribute such portion that in law and fact that he be made liable or ac- not take serious steps to peruse or review
the High Court deems fit,” the legal docu- countable to SRC as a constructive trustee of its records towards blaming him for the
ment said. the proceeds of the KWAP loans disbursed RM4 billion KWAP loans.
into the company’s AmIslamic accounts on
Ismee was one of the key witnesses in Aug 29, 2011 and March 28, 2012,” he said The former SRC director denied that
the SRC trial, where former prime minister in the legal document. he had custody, control or dominion of
Datuk Seri Najib Razak was found guilty the KWAP loan proceeds.
of abuse of power with regards to the RM4
billion KWAP loan, and three counts each He further claimed that the subject mat-
of criminal breach of trust and money laun- ter and events relating to SRC and 1MDB
dering of RM42 million. along with Najib had affected his dignity,
integrity as a professional, his private and
In addition, Shahrol had also testified in family life due to the hurtful publicity gen-
the ongoing 1MDB trial where Najib is also erated, and the continuous action on him
the accused. was done in bad faith.

Those maintained in the SRC suit besides For these reasons, he is seeking a court
Azhar and Najib were former SRC directors declaration the suit filed against him is an
Datuk Suboh MdYasin, Datuk Che Abdul- abuse of process and he sought general,
lah @ Rashidi Che Omar, and fugitive Nik exemplary and aggravated damages to be
Faisal Ariff Kamil. assessed.

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W I S H I N G A L L M A L AYS I A N S

SELAMAT
HARI

MERDEKA

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Kenanga ups target price for Genting on
‘recovery play’ despite 1HFY21 results

missing expectations

KUALA LUMPUR (Aug 30): Kenanga by joyce goh RWLV to contribute positively to Gent-
Research said while Genting Bhd’s first theedgemarkets.com ing’s financials in 2HFY21 as footfall in
half ended June 30, 2021 (1HFY21) the casino has been very encouraging since
core loss of RM111 million missed ex- a 41% discount to SOP (sum-of-parts) it commenced operations.
pectations, strong UK and US numbers valuation,” it added.
in the second quarter (2QFY21) due to “Following changes to the TPs of its
reopening and relaxing operating restric- Risk to Kenanga’s call is a prolonged subsidiaries, our TP is lowered slightly
tions led the research house to believe that Covid-19 pandemic continuing to restrict from RM5.75 to RM5.65. We believe
a swift recovery is in store for ResortWorld travelling and hence affecting its casino that investors will eventually start to look
Group and Resort World Singapore once operations. ahead its poor results as its UK and US
business and borders reopen. operations already recorded strong im-
HLIB Research lowers TP provements in 2QFY21,” it added.
As such, in a note today, it opined that Meanwhile, Hong Leong Investment Bank
Genting “is a good pick for recovery play”. (HLIB) Research lowered itsTP for Gen- HLIB Research said that the gaming
Following that, Kenanga maintained its ting to RM5.65 from RM5.75. business in Malaysia and Singapore will
“outperform” call on the stock and raised continue to plague Genting as Covid-19
its target price (TP) to RM6.47 from “Genting recorded 2QFY21 core LAT- cases were escalating at an alarming pace
RM6.05. MI (loss after tax and minority interest) in Southeast Asia of late and it will “re-
of RM383 million, bringing its 1HFY21 main challenging in the near term”.
“[We have] a mixed outlook for the core loss to RM701 million (year-on-year:
upcoming 3QFY21 given the prolonged -RM572 million).The results were below On a more positive note, it noted that
lockdown in Malaysia but this should be our (FY21: RM29.7 million) and consen- the vaccination rates in Malaysia are in-
mitigated by the improving situation in sus (FY21: RM277 million) expectations creasing rapidly.
the UK and US, especially RWLV (Resort largely due to weaker-than-expected re-
World Las Vegas). sults for GenM and GenS,” it noted in a “Its US and UK operations have also
report today. almost resumed full operations and start-
“Overall, business volume is likely to ed to contribute more to its financials.We
recover from 2HFY21 due to vaccination “Nevertheless, we remain positive on remain hopeful of long-term prospects
deployment where positive development the vaccination rates in Malaysia as the for Genting as we expect it to record an
has been witnessed in the western coun- economy is already opening up to ful- exponential recovery in FY22,” it added.
tries with higher vaccination rates,” it said. ly vaccinated individuals.We also expect
Genting’s stock was in the green this
For 2QFY21, Genting’s net loss nar- morning, up 10 sen or 2.03% to RM5.03.
rowed 28.31% to RM563.5 million from
RM786.05 million, while revenue rose
165.06% to RM2.9 billion from RM1.11
billion, mainly on the back of a higher
contribution from its leisure and hospi-
tality segment.

Post 2QFY21 results, Kenanga includ-
ed RWLV into its forecasts and valuation.

“With the adjustment for Genting
Malaysia (GenM), Genting Singapore
(GenS) and Genting Plantations, we cut
our FY21E earnings (estimate) by 31%
but raised our FY22E earnings by 8%.
We also cut our FY21E NDPS (net div-
idend per share estimate) by half to 7.5
sen but keep our FY22E NDPS at 15
sen,” Kenanga noted.

“Genting is a good pick for recovery
play as its business should recover quickly
once cross-border restrictions are lifted,
especially for GenS. New casino RWLV
could be a wild card judging from its ini-
tial data.With the inclusion of RWLV and
post 2QFY21 results revision, our new
TP is raised to RM6.47 from RM6.05
based on unchanged +1SD (one stand-
ard deviation) to the five-year mean at

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Deloitte names Mr DIY, Sunway, BIG Pharmacy
Healthcare and MAMEE-Double Decker as
Malaysia’s Best Managed Companies

KUALA LUMPUR (Aug 28): Four com- by Tan Siew Mung Managed are holistic and robust, serving
panies, namely MR DIY Group (M) Bhd, theedgemarkets.com as an excellent template for companies to
Sunway Bhd, BIG Pharmacy Healthcare future-proof themselves,” saidYam.
Sdn Bhd and MAMEE-Double Deck- growing contribution towards commu-
er (M) Sdn Bhd, have been recognised nity service. “Digital transformation is key to busi-
by Deloitte PLT as inaugural winners of ness sustainability. Best Managed winners
its Malaysia’s Best Managed Companies Deloitte Malaysia Private leader Chee constantly evolved and continued to drive
awards programme. Pei Pei commended the management the culture of innovation, preparing them
teams of these businesses as visionary to anticipate business disruptions, and
Initiated by its private business-focused and innovative.“We were impressed by enabling them to stay competitive in the
practice, Deloitte Private, the programme the companies’ willingness to have con- global arena,” Cao commented.
recognises top privately-owned local com- versations about their strengths and dis-
panies with annual revenues exceeding cuss market opportunities within their The Best Managed Companies winners
US$25 million (RM104.81 million) for industries. It’s wonderful to be able to are encouraged to re-join the programme
their organisational excellence, as well as recognise their contribution to the Ma- every year to continuously challenge, im-
contributions to their respective industries laysian economy. We are hopeful that prove, and grow their company to retain
and the economy. through this win, they will be role mod- their Best Managed Companies status,
els spurring other private companies to said Deloitte.
In a statement, Deloitte said the pro- scale greater heights, towards nation
gramme is part of its global Best Managed building,” said Chee. BIG Pharmacy Healthcare’s chief ex-
Companies awards, and applies a proven ecutive officer Lee Meng Chuan said win-
evaluation process to assess the businesses’ An independent judging panel com- ning the award proves that the group is on
quality of management in areas includ- prising business and academia represent- the right track with its vision of ensuring
ing strategy, capabilities and innovation, atives determined the winners based on everyone will ‘Be In Good Health’.
culture and commitment, as well as gov- the leading practices of Best Managed
ernance and financials. Companies, Deloitte said. MAMEE-Double Decker’s group ex-
ecutive director Pierre Pang attributed
“These companies’ resilience and This year’s jury members consisted the win to the continued support of the
sustained commitment to their purpose, of: Prof Datuk Dr Asma Ismail, Ibn Sina group’s greatest asset — the Monstar team
despite navigating an extraordinary year, Chair for Medicine at International Is- — and that the key to its success is its 4Is
has been truly remarkable,” said Deloitte lamic University Malaysia; Datuk Seri — Integrity, Intensity, Involvement, and
Malaysia chief executive officerYee Wing Dr Michael Yam, chairman of InvestKL Innovation.
Peng. Corp; and Jordy Cao, general manager of
Alibaba Cloud Malaysia. MR DIY Group’s chief executive of-
According to him, the Best Managed ficer Adrian Ong said the win inspires the
Companies awards provide an opportu- “The Malaysia Best Managed winners group to continuously find new and excit-
nity to celebrate these outstanding local had what I call theW.O.W. factor (World- ing ways to bring its promise of ‘Always
household brands, which demonstrated class — Outstanding qualities —Winning Low Prices’.
the importance of strong leadership, in- products). I hope the winners will con-
novation, and agility. tinue to go beyond great, and make Ma- Sunway Group’s digital and strategic
laysians proud,” said Asma. investments chief executive officer Evan
Some emerging trends seen among Cheah, meanwhile, shared the award is
winners, he said, included an increased “This competition is a much-needed testament to Sunway Group’s commit-
focus on leadership, diversity and inclu- tonic and stimulant for Malaysian cor- ment and sustainability-driven strategies,
sion, digital transformation to enable ef- porates aspiring to be the best in class. and demonstrated the group’s resilience
ficiencies, and for many companies — a The criteria and value proposition of Best as well as ability to respond, reinvent, and
recover from unprecedented challenges.

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NEWS IN BRIEF

Foreign buying extends to third Weekly net flow of foreign Pestech proposes two-for-eight
week, surges to RM964.3m funds into Malaysian equities bonus issue of shares, one-for-eight
since Jan 2019 bonus issue of warrants
KUALA LUMPUR (Aug 30): Foreign
buying of Malaysian equities extended for 500 (RM mil) Nov Aug KUALA LUMPUR (Aug 30): Integrated
the third week and surged to RM964.33 0 2020 2021 electrical power technology group
million last week, from a mere RM6.71 Pestech International Bhd has proposed to
million the prior week, said MIDF Research -500 undertake a bonus issue of 191.07 million
in its weekly fund flow report today. The -1,000 new shares on the basis of two bonus shares
research house said foreign investors were -1,500 for every eight existing shares held on an
net buyers every day of the week, with the -2,000 entitlement date to be determined later.
largest inflow recorded on Thursday to -2,500 Jan Concurrently, it has proposed a bonus issue
the tune of RM310.79 million. Retailers, of up to 95.54 million warrants on the basis
meanwhile, were net sellers every day last 2020 of one warrant for every eight existing
week, except on Monday. “Cumulatively, shares held on the same entitlement date
for the week, retailers net sold RM113.96 Sources: Bursa Malaysia statistics, as the proposed bonus issue of shares. The
million worth of equities on Bursa MIDF Research proposals are expected to be completed by
Malaysia,” it said. Local institutions, who the fourth quarter of 2021. Pestech shares
were also net sellers every day last week, local equity market to the tune of RM9.46 closed up 4.5 sen or 4.95% at 95.5 sen today,
recorded cumulative weekly net selling of billion; ;ocal institutions and foreign investors bringing a market capitalisation of RM729.9
RM850.37 million. Since the start of 2021, were net sellers of RM4.46 billion and RM5 million. Its share price has risen 4.95% year
retailers were the only net buyers of the billion, respectively. — by Surin Murugiah/ to date. — by Justin Lim/theedgemarkets.com
theedgemarkets.com
Ireka’s auditor flags material
Vizione secures RM116.05m hotel Syed Hizam Alsagoof Tan Mei Fung uncertainty over its ability to
construction job in Langkawi continue as a going concern
Cahya Mata suspended CFO’s
KUALA LUMPUR (Aug 30): Vizione Holdings contract ends KUALA LUMPUR (Aug 30): Construction
Bhd has secured a RM116.05 million contract and property group Ireka Corp Bhd’s
to build a four-star hotel in Langkawi. Besides KUALA LUMPUR (Aug 30): The contract external auditor Messrs Crowe Malaysia
238 hotel rooms, the 14-storey building will of Cahya Mata Sarawak Bhd’s (CMS) PLT has expressed a qualified opinion with
also comprise six service apartments, five suspended chief financial officer (CFO) indication on material uncertainty on its
office units and three shop units, the group Syed Hizam Alsagoof ends Friday (Aug ability to continue as a going concern in
said in a filing with Bursa Malaysia. The two- 31). Syed Hizam, 53, has been suspended view of its audited financial statements for
year contract, awarded by Inspirasi Langkawi since May to facilitate investigations the financial year ended March 31, 2021
Sdn Bhd, will commence on Sept 1. — by Tan into allegations of possible financial (FY21). In its auditors’ report filed by Ireka
Siew Mung/theedgemarkets.com mismanagement in relation to the group’s with Bursa Malaysia today, Crowe Malaysia
investments and operations. In a bourse said it was unable to obtain sufficient audit
Malayan Cement’s minority filing, CMS said its board has decided the evidence on the carrying amount of the
shareholders approve acquisition of group’s general manager for finance, Tan group’s investment in Aseana Properties
YTL’s cement ops Mei Fung, will continue as head of finance Ltd and its subsidiaries (ASPL Group) as at
pending the recruitment of a new CFO. March 31, and the group’s share of ASPL
KUALA LUMPUR (Aug 30): Malayan Cement CMS also said its independent consultant, Group’s profit after taxation for FY21. This
Bhd received shareholders’ approval today KPMG Management & Risk Consulting Sdn is because it couldn’t obtain access to the
to proceed with the acquisition of YTL Bhd (KPMG MRC) — which was appointed financial information, management, and
Cement Bhd’s entire cement and ready-mixed in June to review the group’s financial the auditors of ASPL Group within the
concrete operations in Malaysia for RM5.16 management of certain investment and audit period. Consequently, it was unable
billion. YTL Cement and Malayan Cement’s contracts — has completed its reports. to determine whether any adjustments
managing director Datuk Seri Michael However, investigations into the group’s might have been necessary to these
Yeoh Sock Siong said in a statement the investments and contracts are still balances. The auditor also drew attention
transaction will bolster profitability and value ongoing, CMS said. “The company expects to the group’s financial statements for
enhancement, increase the size of Malayan the complete results of the review to be FY21, which indicated Ireka incurred a net
Cement’s cement and ready-mixed concrete announced by the end of October 2021,” it loss of RM25.08 million in FY21 and, as
businesses, while enabling YTL Cement to added. — by Justin Lim/theedgemarkets.com of that date, the group’s current liabilities
consolidate similar operating businesses exceeded its current assets by RM40.24
under a singular umbrella. The total million. “These events or conditions...
consideration, which is subject to adjustments indicate a material uncertainty exists that
at completion, will be settled via RM2 billion in may cast significant doubt on the group’s
cash, RM1.41 billion through the issuance of ability to continue as a going concern.
375.5 million new shares in Malayan Cement Our opinion is not modified in respect
and RM1.75 billion through the issue of of this matter,” said Crowe Malaysia. —
466.7 million new irredeemable convertible theedgemarkets.com
preference shares (ICPS) in Malayan Cement.
— by Tan Siew Mung/theedgemarkets.com Click here to read the full story

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Passive era has Ministers, ister of Agriculture and Food Industries
ended, now’s the deputy ministers • Datuk Seri Tuan Ibrahim Tuan Man —
time to activate
sworn in Minister of Environment andWater
the Senate — before Agong • Datuk Seri Hamzah Zainudin — Home
RaisYatim
Bernama Minister
Bernama • Datuk Seri Alexander Nanta Linggi —
KUALA LUMPUR (Aug 30): A total of
KUALA LUMPUR (Aug 30):The pas- 30 Cabinet ministers and 37 deputy minis- Minister of DomesticTrade and Consum-
sive era of the Senate has ended and the ters were sworn in before theYang di-Pertu- er Affairs
time has come to activate and revive it an Agong Al-Sultan Abdullah Ri’ayatuddin • Datuk SeriTakiyuddin Hassan — Minister
as the country’s revered legislative insti- Al-Mustafa Billah Shah at Istana Negara here of Energy and Natural Resources
tution, Senate President Tan Sri Dr Rais today. • Datuk Seri Dr NorainiAhmad — Minister
Yatim said. of Higher Education
Raja Permaisuri Agong Tunku Hajah
As such, he said all senators should Azizah Aminah Maimunah Iskandariah was Third Group:
study the powers provided to the Senate in attendance. • Datuk Seri Rina Mohd Harun — Min-
under the Federal Constitution and what
they could do through the Senate’s Spe- The new Cabinet line-up under Prime ister ofWomen, Family and Community
cial Select Committees. Minister Datuk Seri Ismail Sabri Yaakob’s Development
administration comprising 31 ministers in- • Tan Sri Annuar Musa — Minister of
“The Senate will work closely with the cluding four senior ministers and 38 deputy Communications and Multimedia
Dewan Rakyat (House of Representatives) ministers was announced last Friday. • Datuk Seri Reezal Merican Naina Mer-
and we will strengthen the Parliament for ican — Minister of Housing and Local
the benefit of the people. Two of them were unable to attend the Government
swearing-in ceremony today namelyTan Sri • Khairy Jamaluddin — Minister of Health
“I hereby call on all senators to play Noh Omar (Minister of Entrepreneur Devel- • Datuk Halimah Mohamed Sadique —
a more active role through the special opment and Cooperatives) as he had been a Minister of National Unity
select committees not just to champion close contact of Covid-19 patient and Datuk • Datuk Seri Dr Adham Baba — Minister
the people’s issues, but also to ensure the Mohamad Alamin (Deputy Education Min- of Science,Technology and Innovation
success of the Senate reform process,” he ister II) who was tested positive for Covid-19. • Datuk Seri Mustapa Mohamed — Min-
said at the swearing-in ceremony of three ister in the Prime Minister’s Department
senators today. Ismail Sabri was also unable to attend the (Economy)
ceremony, as he had to undergo self-quar-
The three senators are Datuk Seri Ti antine for having been a close contact of Fourth Group:
Lian Ker, Datuk Razali Idris and Md Covid-19. • Datuk Saifuddin Abdullah — Foreign
Nasir Hashim, who were reappointed
for their second three-year term by the The ceremony, held in theThrone Room, Minister
Yang di-Pertuan Agong Al-Sultan Abdul- began at 2.30pm with the oath-taking, fol- • Datuk Dr Zuraida Kamaruddin — Min-
lah Ri’ayatuddin Al-Mustafa Billah Shah. lowed by the signing of the appointment let-
ters which was witnessed by Chief Justice ister of Plantation Industries and Com-
Ti’s appointment took effect from Aug Tun Tengku Maimun Tuan Mat and Chief modoties
10 to Aug 9, 2024, while Razali and Md Secretary to the GovernmentTan Sri Mohd • Datuk Dr Abdul Latiff Ahmad — Min-
Nasir’s, from Aug 27 to Aug 26, 2024. Zuki Ali. ister in the Prime Minister’s Department
(Special Functions)
In his speech, Rais also reminded the The ministers were divided into five • Datuk Seri DrWan JunaidiTuanku Jaafar
senators to carry out their duties to the groups while the deputy ministers, into six — Minister in the Prime Minister’s De-
best of their ability and in a responsible groups, in taking their oath of office before partment (Parliament and Law)
and trustworthy manner. the King. • Datuk Seri Nancy Shukri — Minister of
Tourism, Arts and Culture
He also advised them to evaluate their The first group of seven ministers com-
first term of senatorship and to improve prised four senior ministers: Datuk Seri Mo- Fifth Group:
themselves in the second term as well as hamed Azmin Ali (International Trade and • Datuk Seri Mahdzir Khalid — Minister
to work harder in discharging their duties Industry), Datuk Seri Hishammuddin Tun
to the Senate and to the people affected Hussein (Defence), Datuk Seri FadillahYusof of Rural Development
by the Covid-19 pandemic. (Works) and Senator Dr Mohd Radzi Jidin • Datuk Seri Shahidan Kassim — Minister
(Education).
of FederalTerritories
The three others in the first group were • Datuk Seri Faizal Azumu — Minister of
Finance Minister SenatorTengku Datuk Seri
Zafrul Tengku Aziz, Minister of Transport Youth and Sports
Datuk Seri DrWee Ka Siong and Human Re- • Senator Idris Ahmad — Minister in the
sources Minister Datuk Seri M. Saravanan.
Prime Minister’s Department (Religious
Affairs)
The ceremony then proceeded with the
swearing-in of 37 deputy ministers and was
concluded with their photo session with both
Al-Sultan Abdullah andTunku Azizah.

Second Group: Read also: Retention ofTengku Zafrul,Tok
• Datuk Seri Dr Maximus Johnity Ongkili Pa in Cabinet indicates tabling of RMK-
12, Budget 2022 on track — Maybank IB
— Minister in the Prime Minister’s De- Click here
partment (Sabah and Sarawak Affairs)
• Datuk Seri Dr Ronald Kiandee — Min-

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Selangor passes Former
motion to Sabah
governor
implement online Tun Sakaran
or hybrid sittings Dandai dies

Bernama Bernama

SHAH ALAM (Aug 30): The Selangor Meanwhile, Selangor assembly speaker bernama
legislative assembly today passed a mo- Ng Suee Lim said the amendment, under
tion to enable future assembly sittings to be Standing Orders 21 and 69 (4), for the KOTA KINABALU (Aug 30):
conducted in an online or hybrid format. Selangor assembly to be conducted in an Former Sabah Governor Tun Sa-
online or hybrid format, should extraordi- karan Dandai died at the Glenea-
The motion tabled by DatukTeng Chang nary circumstances occur, was approved by gles Hospital here early today.
Khim (PH-Bandar Baru Klang) was to ena- the state legislative assembly today.
ble assembly sittings to be held in an entirely He was 91.
online or hybrid format at the request of the “Today it has passed, so the Standing His grandson, Ahmad Marzuki
Menteri Besar, during an Emergency, pan- Orders Committee, which I chair, along Nasir, said Sakaran breathed his
demic or extraordinary emergency where with six other members, including opposi- last at 5.30 am.
physical attendance is discouraged. tion assemblymen, will convene and meet “Together we pray for Allah to
within a week or two to discuss the details bless his soul and place him among
“Secondly, (the motion enables) state and will be tabled in the upcoming sitting,” the righteous and pious. Al-Fati-
assembly committee meetings to be held he told reporters at the lobby of the state hah,” he said in a brief statement
on an entirely online or hybrid format af- legislative assembly building here today. here.
ter the Speaker receives confirmation from Sakaran was admitted to the
the Menteri Besar that Selangor is in an Ng added that the six-day sitting had hospital for suspected COVID-19
Emergency, facing a pandemic or an ex- progressed smoothly, with all parties co- infection on Aug 18 before being
traordinary emergency where physical at- operating, especially with the compliance warded in the intensive care unit
tendance is discouraged,”Teng explained. of the standard operating procedure. over the past five days.
Sakaran, from Semporna, Sa-
KUCHING (Aug 30): Limbang, Kapit Limbang, Kapit bah, was the 8th Chief Minister
and Miri divisions in Sarawak have been and Miri declared of Sabah in 1994 before being ap-
declared African Swine Fever (ASF) dis- pointed as the 8thYang Dipertua
ease control areas, following the spread of African Swine Negeri of Sabah from Jan 1, 1995,
the virus in Sabah and North Kalimantan Fever control to Dec 31, 2002.
in Indonesia. He had played an important
areas role for Sabah and Malaysia in im-
Sarawak Veterinary Services Depart- proving the socioeconomic status
ment (JPVS) director Dr Adrian Susin Bernama and education of the people, and
Ambud said enforced under Section 35 also in promoting Islamic litera-
(1) of the Veterinary Public Health Ordi- cated or destroyed under this section. Fail- ture, which had also led him to be
nance 1999, the public is not allowed to ure to comply with the instructions will named the recipient of the Nation-
move out live pigs, their meat, or products result in a fine not exceeding RM1,000. alTokoh Maal Hijrah Award 2017.
from the controlled areas.
He also urged farmers who come across
“The public is also not allowed to bring abnormalities in their livestock mortality rate
in, shop online or use postal services for to immediately contact nearest the veteri-
pork or its products without a permit; as nary office orWhatsapp via 016-284 0918.
well as buying or selling (physically or on-
line) or keep in possession wild boar,” he
said in a statement today.

He said no compensation would be
paid for any pigs or pig products confis-

bloomberg

T U E S D A Y A U G U S T 3 1 , 2 0 2 1 20 T H E E D G E C E O M O R N I N G B R I E F

IF YOU ARE
NOT PART OF
THE SOLUTION

YOU WILL BE
PART OF

THE PROBLEM

Vaccinations reduce infections and save lives*
Get yourself vaccinated

Get your family, friends and colleagues
to register for vaccination

Join the race to build herd immunity

*Covid-19 Vaccines Advice

– World Health Organization

*Benefits of Getting Covid-19 Vaccines

– US Centre For Disease Control & Prevention

THIS IS A COMMUNITY SERVICE MESSAGE ON FIGHTING COVID-19

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China slashes kids’ gaming time
to just three hours a week

by Zheping Huang, Shiyin Chen bloomberg
& Abhishek Vishnoi
Bloomberg

HONG KONG (Aug 30): China will for- Gaming platforms from ○ Regulators will ratchet up checks over
bid minors from gaming more than three Tencent Holdings Ltd to how gaming firms carry out restrictions
hours most weeks of the year, imposing NetEase Inc can henceforth on things like playing time and in-game
their strictest controls yet over entertain- only offer online gaming purchases
ment for youths in a blow to the world’s to minors from 8 p.m. to 9
largest mobile gaming arena. p.m. on Fridays, weekends ○ Regulators will work with parents,
schools and other members of the so-
Gaming platforms fromTencent Hold- and public holidays. ciety to combat youth gaming addiction.
ings Ltd to NetEase Inc can henceforth The new rules underscore the extent to
only offer online gaming to minors from 8 Tencent and other companies have said
p.m. to 9 p.m. on Fridays, weekends and minors account for only a fraction of their which Beijing is intent on curbing gaming
public holidays, state news agency Xinhua businesses, especially after recent restric- addiction among youths and pushing its
reported, citing a notice by the National tions. The country’s largest games com- future workforce toward more productive
Press and Publication Administration.The pany has said the revenue from minors pursuits. Earlier this month, state media
new rules, which limit teen playing time yields less than 3% of its gross gaming published forceful critiques of the industry
to three hours most weeks of the year, is a receipts in China. and at one point labeled games “spiritual
major step-up from a previous restriction opium.” That description was later re-
set in 2019 of 1.5 hours per day, most days. Other key points in the new rules in- moved, but share prices plunged out of
clude: concern for further restrictions.
The escalating restrictions onTencent’s ○ All online games should be linked to a
biggest business are likely to spook inves- Tencent, which in 2018 and 2019 grap-
tors that had cautiously returned to Chi- state anti-addiction system, and com- pled with a widespread gaming industry
nese stocks in recent days, exploring bar- panies can’t provide services to users crackdown then focused on myopia among
gains after a raft of regulatory probes into without real-name registrations; children, is also struggling with a plethora
areas from online commerce to data secu- of tightening regulations in areas such as
rity and ride-hailing ignited a trillion-dollar social media, online finance and commerce.
selloff in past weeks.
It has proactively reduced the number
Netease slid as much as 7% in pre-mar- of hours that minors can play its games, but
ket trading in NewYork, while Prosus NV, the company was not nearly as restrictive
Tencent’s biggest shareholder, fell 1.9% as the government’s new rules. It limited
in Europe. minors to just an hour during weekdays
and no more than two hours during va-
“Three hours per week is too tight. Such cations and holidays.
a policy will have negative impact onTencent
too,” Steven Leung, an executive director at “Since 2017,Tencent has explored and
UOB Kay Hian (Hong Kong) Ltd. said. “I applied various new technologies and func-
thought regulatory measures would take a tions for the protection of minors,”Tencent
break gradually but it’s not stopping at all. It said in a messaged statement. “That will
will hurt the nascent tech rebound for sure.” continue, asTencent strictly abides by and
actively implements the latest requirements
from Chinese authorities.”

Read also: China game stocks in US fall
on Beijing’s latest crackdown Click here

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SHANGHAI (Aug 30): China’s top se- China tightens 1.6 times the size at 2016-end,Yi said.
curities regulator pledged on Monday scrutiny on The private securities fund sector
to crack down on mismanaged private
funds and weed out fake ones, as the US$9.3 trillion doubled to 5.5 trillion yuan, and its pri-
government becomes more assertive in fund industry vate equity and venture capital indus-
dealing with an industry worth 60 tril- try tripled to 12.6 trillion yuan during
lion yuan ($9.28 trillion). Reuters the period.

China has been seeking to channel By July-end, the Despite a recent cleanup of China’s
more household savings into the capi- country's mutual fund private fund industry, there’re still many
tal markets to fund innovation and aid industry stood at 23.5 small and weak players hampering the
its economic recovery, while reducing trillion yuan, 1.6 times high-quality growth of the sector, Yi
the economy’s reliance on bank lending. the size at 2016-end. said, adding that the regulators will
publish new rules in due course.
Fund managers should align their set managers such as BlackRock and
interests more closely with investors, Fidelity International after regulators Some private-fund managers even
and refrain from hyping their products, scrapped foreign ownership in the sec- raise money publicly, and misappro-
Yi Huiman, chairman of the China Se- tor on April 1, 2020. priate clients’ funds, he added.
curities Regulatory Commission said.
By July-end, the country’s mutual Yi urged fund managers to prioritize
“China is actively promoting fund industry stood at 23.5 trillion yuan, clients’ needs and interest, as “it hap-
high-quality growth of its capital mar- pens from time to time that funds make
kets, and healthy development of the money, but investors don’t”.
60 trillion yuan fund industry is a cru-
cial part of it,” Yi told a meeting held He asked money managers to address
by the Asset Management Association the issue of fund churning, in which
of China. fund salespeople, seeking higher com-
missions, encourage investors to re-
Chinese mutual fund managers also deem existing funds and subscribe to
face rising competition from global as- just-launched ones, resulting in massive
fund flows.

(Aug 30): China Huarong Asset Man- Huarong posts nalized and could change, people familiar
agement Co.’s long-delayed 2020 results US$15.9 billion with the matter have said.
showed a record loss, with leverage hitting loss as leverage
1,333 times and capital buffers far short hits 1,333 times Huarong has US$238 billion in differ-
of the regulatory minimum, emphasizing ent liabilities — including more than $20
the difficult task ahead for the bad-debt Bloomberg billion of offshore bonds — and has drawn
manager that recently secured a govern- close scrutiny from investors across the
ment bailout. bloomberg world.The company’s borrowings amount-
ed to 782 billion yuan as of June 30, of
Huarong reported a 102.9 billion yuan lesson and take it as valuable experience which those coming due within one year
(US$15.9 billion) loss for all of last year, and the desire to move forward.” amounted to 578 billion yuan. It warned
slashing its shareholder equity by nearly that the significant decline in operating
85%, the firm said in a filing on Sunday in The company said by implementing performance and its financial condition
Hong Kong.The company booked 107.8 measures including asset sales and a cap- may trigger immediate repayment of about
billion yuan in impairments and suffered ital boost it can ensure operations for the 17.9 billion yuan.
a 12.5 billion yuan loss on financial assets. next 12 months.
While it returned to a profit of 158 million Huarong’s capital adequacy ratio
yuan in the first half this year, Huarong’s State-owned investors including Citic slumped to 4.16% at the end of last year
key capital level was far below regulatory Group, China Insurance Investment Co. and stood at 6.32% as of June 30. Chinese
requirements as of June. and China Life Asset Management Co. on regulators demand a minimum 12.5% for
August 18 agreed to put fresh capital in bad loan asset managers, and at least a 9%
After five months of turmoil since it Huarong.The firm would receive US$7.7 core tier-1 ratio. Its leverage ratio, calculat-
delayed its earnings report in March, Chi- billion as part of an overhaul plan with ed as interest-bearing debt to equity, fell
na’s biggest bad debt manager this month control shifting to Citic from the Finance from 1,333 to 37.1 as of June 30. That’s
secured a rescue package from some of the Ministry, though details were still being fi- still four times higher than its level at the
nation’s biggest financial firms. Its plight end of 2019 and compared with 6.8 times
had become the biggest test in decades of at major rival China Cinda Asset Man-
whether Beijing would still shield state- agement Co.
owned firms from market forces amid a
renewed push by President Xi Jinping to Huarong’s auditor Ernst &Young also
rein in debt growth as defaults have hit expressed reservations on the company’s
records. income and cash flow statements for 2020,
as it was unable to obtain “sufficient appro-
A review of assets and risks last year priate audit evidence” to ascertain whether
“had a significant impact on the operating any of the associated gains and losses rec-
results and is a harsh lesson to be learned ognized by Huarong in 2020 should have
in the development history of the com- been recorded in previous years.
pany,” Chairman Wang Zhanfeng said in Click here to read the full story
the report. “What is gone is gone, but go
for what to come. We will learn from the

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Mobius says hold is going to be quite significant next year bloomberg
10% in gold as given the incredible amount of money sup-
ply that has been printed.” Francois Villeroy de Galhau
currencies set to
be devalued Bullion rallied to a record last year as ECB needs to
the coronavirus pandemic spurred a flight take account
by Abhishek Vishnoi & Ranjeetha Pakiam to haven assets but it’s pulled back since of improved
Bloomberg with the roll-out of vaccines. To fight the
crisis, central banks and governments financing
(Aug 30): Veteran investor Mark Mobius worldwide have unleashed an unprecen- conditions,
said investors should have 10% of a port- dented wave of monetary and fiscal stim- saysVilleroy
folio in gold as currencies will be deval- ulus, boosting balance sheets at the Fed-
ued following the unprecedented stim- eral Reserve and elsewehere and straining by Benoit Van Overstraeten,
ulus rolled out to fight the coronavirus state finances. Matthieu Protard & Leigh Thomas
pandemic.
“It is going to be very, very good to have Reuters
At this stage, “10% should be put into physical gold that you can access immedi-
physical gold,” said Mobius, who set up ately without the danger of the government PARIS (Aug 30): The Europe-
Mobius Capital Partners after more than confiscating all the gold,” Mobius, a long- an Central Bank should take ac-
three decades at Franklin Templeton In- time fan of the metal, said in an interview. count of a recent improvement in
vestments. “Currency devaluation globally financing conditions in discussing
Spot bullion, which traded at $1,816.16 the future of its pandemic-related
an ounce, hit an all-time high above $2,075 monthly asset purchases, ECB pol-
about a year ago. Year-to-date, it’s shed icymaker FrancoisVilleroy de Gal-
more than 4%, while global stocks hold hau said on Monday.
near a record and the Fed lays out a strat-
egy to pare stimulus. Villeroy, who is also governor
of the Bank of France, said there
FRANKFURT (Aug 30): German infla- German inflation was no urgency to decide on the
tion has jumped to its highest level since climbs to highest future of the Pandemic Emergency
2008, driven by energy and higher costs Purchase Programme at the ECB’s
passed on by businesses. since 2008 on September meeting because unlike
energy costs the US Federal Reserve, the ECB
Consumer prices rose 3.4% in Au- could adjust its monthly purchases
gust, significantly faster than the 2% the by Jana Randow according to financing conditions.
European Central Bank aims to achieve Bloomberg
sustainably for the euro area. Earlier on Speaking on BFM Business ra-
Monday, Spain reported a rate of 3.3%. puts. Selling-price expectations rose to a dio,Villeroy said that financing con-
record in industry, retail trade, and con- ditions in the euro zone had im-
So far, policymakers have argued that struction in the euro area, according to a proved since the ECB’s last meeting
the current inflation surge is temporary survey. in June.
and largely reflects one-off effects.Yet an
aggravating supply squeeze is prompting Data on the latest trend for consumer “Our discussion should take ac-
more and more firms to raise charges, a prices in the 19-nation region are due on count of this improvement in fi-
trend that could produce more permanent Tuesday. nancing conditions,”Villeroy said.
price pressures.
He also said the economies in
Inflation imported into Germany is France and the euro zone should
running at 15%, the fastest in four dec- be back to pre-Covid levels in early
ades, putting a price tag on the difficul- 2022 or maybe earlier, that there
ties businesses are facing to secure in- was no risk of durably higher infla-
tion at this stage.

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Toyota posts global output slid about 24% from a year reuters
record sales earlier to 324,117 units and sales dipped
for July, but 5.2% to 367,424 units. Ride-hailing
production firm Ola said to
cuts loom Toyota recently said it would cut pro- pick banks for
duction by 40% in September due to
by River Davis parts shortages stemming from Cov- US$1b IPO
Bloomberg id-19-impacted suppliers in Southeast
Asia, sending its shares down more than by Baiju Kalesh & Anto Antony
TOKYO (Aug 30): Toyota Motor Corp 10% in the week through Aug 20. In- Bloomberg
reported an increase in sales and output ventory at dealerships in markets like
for July, showing that it has managed in- the US is quickly depleting, Bob Cart- (Aug 30): Ride-hailing startup Ola has
dustry-wide supply-chain snarls relatively er, executive vice president of sales for selected banks including Citigroup Inc
well despite warning of imminent pro- Toyota North America, said on Bloomb- and Kotak Mahindra Bank Ltd to man-
duction cuts. erg Television. age its Mumbai initial public offering
that could raise about US$1 billion,
Strong demand for sport utility vehi- For Toyota and other Japanese auto- according to people familiar with the
cles and hybrids in the US boosted Toy- makers, high operating margins last quar- matter.
ota’s sales by 15% from a year earlier to ter will “offset the impact of cutbacks to a
858,569 units, a record for July. Total large extent”, Nomura analyst Masataka The company, backed by SoftBank
output rose 12% to 773,135 units, the Kunugimoto wrote in a note. Group Corp andTiger Global Manage-
company said in a statement. ment, has also picked Morgan Stanley
“Japanese and South Korean automak- for the listing, said the people, who asked
Emerging from a pandemic-induced ers, and Toyota in particular, are better not to be named as the information is
slowdown, Toyota has capitalised on at supply-chain management than their private. The Bangalore-based startup
strong global demand for cars — July Western counterparts, and we see a strong could seek a valuation of more than
was the 11th straight month sales and likelihood of a smooth increase in output US$8 billion in the IPO and could lodge
output rose on a year-on-year basis. It from October,” he said. a filing as soon as October, one of the
was a different picture for Nissan Motor people said.
Co, which reported a 9.7% drop in sales bloomberg
to 307,100 units and a 17% decline in The 11-year-old Ola would be join-
production to 260,336 units. ing a strong pipeline of Indian startups
that are ready to tap the IPO market in
Honda Motor Co also released weak- the coming months. Paytm, the coun-
er July figures on Monday afternoon. Its try’s leader in digital payments, Flipkart,
the Indian e-commerce giant controlled
(Aug 30): J&T Express, an Indonesian Indonesia’s J&T by Walmart Inc, and digital education
courier company, is considering shifting Express eyes startup Byju’s are also preparing for their
its planned US initial public offering to first-time share sales, Bloomberg News
Hong Kong in a debut that could raise shifting IPO from has reported.
about US$1 billion, according to people US to Hong Kong
familiar with the matter. Details of Ola’s IPO including size
by Fathiya Dahrul & Zheping Huang and timeline could still change as de-
The Jakarta-based company is work- Bloomberg liberations are ongoing, the people said.
ing with Bank of America Corp, China More banks could be added later, they
International Capital Corp and Morgan Preparations for the Hong Kong list- said. Representatives for Citi, Morgan
Stanley on the potential first-time share ing are at an early stage, and details of Stanley and Ola declined to comment,
sale as soon as next year, the people said, J&T Express’ IPO plans including size while a representative for Kotak Ma-
asking not to be named as the matter is and timeline could still change, the peo- hindra didn’t immediately respond to
private. ple said. The company could decide to requests for comment.
pursue a dual listing in the US, as well
The possible change of venue comes as in Hong Kong, one of the people said. Ola currently partners with about
as Chinese regulators have announced 1.5 million drivers across 250 cities in
scrutiny on its companies listing overseas. Representatives for Bank ofAmerica,CICC, India, Australia, New Zealand and the
Even though J&T is Indonesian, several J&T and Morgan Stanley declined to comment. UK.The Uber Technologies Inc’s rival
of its investors are based in China and in July raised US$500 million from in-
the logistics firm has significant opera- Click here to read the full story vestors includingTemasek Holdings Pte
tions there, which has prompted concern and an affiliate of Warburg Pincus.
within the company about potential scru-
tiny from Beijing, one of the people said.

J&T had previously planned to seek
a US IPO as soon as the fourth quarter,
Bloomberg News reported in April.

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Overlooked IPO markets are suddenly
booming as China deals slow

HONG KONG/SINGAPORE (Aug 29): by Julia Fioretti & Ishika Mookerjee region. US hedge funds are also looking at
China’s crackdown on technology compa- Bloomberg India more closely, another banker said.
nies is prompting global investors to look Morgan Stanley research analysts recently
for new opportunities across Asia, contrib- Investors are already advised clients to rebalance their internet
uting to a record jump in initial public of- boosting exposure to holdings away from China and into India
ferings (IPOs) from India to South Korea markets outside China, and Southeast Asia.
that shows few signs of slowing. with some buying into
IPOs from countries “Are investors more interested? Defi-
Tech companies from those two coun- like India and Indonesia nitely,” said William Smiley, co-head of
tries and Southeast Asia have raised US$8 Asia ex-Japan equity capital markets at
billion from first-time share sales this year, for the first time. Goldman Sachs Group Inc. “Global capi-
already blowing past the previous annual tal competes among itself and investment
peak.The tally is poised to get bigger with PT Bukalapak.com, an Indonesian opportunities are judged on both an ab-
planned listings by companies including e-commerce firm, raised US$1.5 billion solute and relative basis.”
Indian fintech giant Paytm and Indone- around the end of July in the country’s
sian internet conglomerate GoTo, both of largest ever IPO, far outstripping an ear- Whether the enthusiasm will last is an
which may break local fundraising records. ly goal of between US$300 million and open question. Bukalapak.com briefly
US$500 million. dipped below its offering price this month,
Long overshadowed by their Chinese though the stock has since rebounded. Zo-
peers, this new crop of start-ups is coming Zomato Ltd, an Indian online food-de- mato and KakaoBank are trading 64% and
of age just as Beijing’s clampdown puts a livery and restaurant platform, received 115% above their IPO prices, respectively.
damper on listing and growth prospects bids worth 1.5 trillion rupees (US$20.2
in what had long been the region’s hottest billion) from large funds for its anchor A growing pipeline of deals will put in-
IPO market. tranche, making it one of the most pop- vestor demand to the test. Paytm — for-
ular Indian offerings among institution- mally called One97 Communications Ltd
The result, some bankers said, may be al investors.The company raised US$1.3 — has filed for a 166 billion rupee IPO that
the start of a new era for tech listings in billion in July. is set to be India’s largest ever. Policyba-
Asia. Investors are already boosting ex- zaar, an online insurance marketplace, is
posure to markets outside China, with KakaoBank Corp, South Korea’s first looking to raise as much as 60.18 billion
some buying into IPOs from countries internet-only lender to go public, sold rupees.
like India and Indonesia for the first US$2.2 billion of new shares last month
time. Prospective issuers that histori- and soared more than 70% in its trading GoTo, formed by the merger of Indone-
cally benchmarked themselves against debut. sian ride-hailing giant Gojek and e-com-
Chinese companies are now highlighting merce provider PTTokopedia, is planning
similarities to other global peers in hopes The hurdle for allocating capital to tech a domestic IPO this year before seeking a
of attaining higher valuations. companies in China “is now much higher US listing. It is currently raising funds at
than it was even a month ago”, said Vikas a valuation of between US$25 billion and
“These are strong companies and sto- Pershad, a portfolio manager at M&G In- US$30 billion, meaning it could become
ries in their own right, but the overwhelm- vestments (Singapore) Pte. “The net ex- Indonesia’s biggest-ever debut.
ing demand has been enhanced by rota- posure to China tech is lower and the net
tion away from China tech,” said Udhay exposure to technology-driven business “There are increasingly diverse sources
Furtado, co-head of Asia equity capital models outside of China is higher.” of capital investing in leading Asia-based
markets at Citigroup Inc. growth businesses,” said Gregor Feige, co-
One banker who asked not to be named head of ECM Asia ex-Japan at JPMorgan
China’s regulatory onslaught, now in discussing client information said some Chase & Co. “Sovereign wealth funds are
its 10th month since the shock implosion Hong Kong-based investors who previ- more active across the board.They’re lean-
of Ant Group Co’s IPO, has slashed val- ously focused on Chinese deals are now ing in and the global long-only community
uations for the nation’s listed tech com- participating in tech IPOs elsewhere in the is also increasingly comfortable with local
panies by nearly 40%. It has also forced listings across Asia.”
many start-ups to pause their IPO plans
after regulators announced a stricter vet- The flood of tech IPOs in Southeast
ting process for overseas offerings. Asia and India is poised to reshape markets
where benchmark indexes have historical-
China and Hong Kong accounted for ly focused on “old-economy” sectors like
about 60% of Asian tech IPOs since the energy and finance.
end of June, down from 83% in the second
quarter, according to data compiled by Favourable demographics and domes-
Bloomberg.About three quarters of Chinese tic consumption growth in Southeast Asia
companies that listed overseas this year “have not translated fully into stock market
are now trading below their IPO prices. performance of late, as some of the fastest
growing businesses were not listed”, said
Meanwhile, deals in smaller markets are Pauline Ng, a portfolio manager at JP-
attracting outsized demand as investors Morgan Asset Management.The growing
bet on increasingly internet-savvy popu- representation of “new-economy” compa-
lations, growing consumer spending and nies means these markets “can no longer
a new class of tech entrepreneurs. be ignored”, she said.

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Rich friends who helped Evergrande
tycoon now count their losses

bloomberg

by Blake Schmidt & Venus Feng
Bloomberg

(Aug 30):Wealthy investors who support- invested HK$5 billion via a unit. for a Chinese poker game. Known as the
ed Chinese billionaire Hui Ka Yan’s em- ○ Liu Ming Hui, chairman of China Gas Big Two Club for the game’s name, the
pire are now paying a heavy price amid clan includes Chinese Estates’ Lau, New
growing concern the group will struggle Holdings Ltd., invested HK$3 billion. World Development Co.’s Henry Cheng
to repay its debts. ○ Wang Zhongming’s Shenzhen Green- and C C Land’s Cheung Chung Kiu.They
have done numerous transactions over the
Hui had long been able to count on his woods Investment Group invested years and are so interconnected that any
poker pals to back China Evergrande Group US$5 billion. default by Evergrande would have reper-
during times of trouble, whether it was by ○ Chan Hoi-wan, chief executive officer cussions for their businesses.
buying stakes in his company, loading up on of Chinese Estates Holdings Ltd. and
its bonds or not calling in debts. He broad- wife of Hong Kong billionaire Joseph Chinese Estates swung to a loss in the
ened that circle to raise funds for his property Lau, invested HK$3 billion. first half of the year due to the drop in in-
services business in December, as well as an ○ Wang Kaiguo invested HK$5 billion via come from Evergrande, which cut its an-
electric-vehicle startup in January. Heyirong International Trade Co. nual dividend in March and later decided
against a special payout.The paper loss of
The sharp reversal in shares of Ever- Property services IPO its Evergrande stock holdings amounted to
grande and its units means Hui’s friends Evergrande’s property management arm HK$4.11 billion. Chinese Estates shares
are now facing potentially punishing losses. raised HK$14.3 billion in its Hong Kong trade near their lowest level since 2004.
The developer’s shares have tumbled about IPO in November, pricing in the lower
70% this year, while Evergrande Proper- half of its marketed range. The offering China Strategic Holdings Ltd., an in-
ty Services Group Ltd. is 34% below its included a staggering 23 cornerstone in- vestment firm backed by New World’s
initial public offering price. vestors.While these investors were allowed Cheng, said in a statement Friday it holds
to sell after June 2, other stakeholders will 133.6 million China Evergrande NEV
Strategic investors who spent a com- be locked up until Dec. 2. shares. Based on the last closing price of
bined US$3.4 billion buying shares in Chi- the electric vehicle maker, its stake is worth
na Evergrande New EnergyVehicle Group Three of the strategic investors in the about HK$868 million, compared with its
in its January placement have seen the val- NEV placement were also anchor investors investment value of HK$3.9 billion. Chi-
ue of their investments plunge more than in the property services unit, according to na Strategic also sold Evergrande bonds
70%.They’ve been unable to sell due to a filings and term sheets seen by Bloomb- for a loss of $4.7 million, according to an
lock-up agreement. Evergrande sold anoth- erg. Chinese Estates’ Chan was the biggest Aug. 24 statement.
er US$1.4 billion of the shares in the open backer of the pre-listing funding round,
market in May to undisclosed investors. subscribing to 5% of the shares, while C C Land said in its interim report that
Kingkey bought HK$236 million. Cen- its stake in Evergrande’s electric vehicle
Concern the company will need to sell tralcon Group’s controlling founder made unit was worth more than 5% of its to-
assets at a steep discount is fueling declines a HK$200 million investment. tal assets, its largest investment by that
in its listed subsidiaries.The world’s most measure.
indebted developer has total liabilities of Poker pals Click here to read the full story
US$300 billion. Some of Hui’s closest allies are from a
group with whom he shares a fondness
Here’s a look at how some Evergrande
investors are doing now:

NEV unit
Back in January, Hui sold HK$26 billion
(US$3.4 billion) of stock in Evergrande’s
green car unit to six investors, subject to a
12-month lock-up period.The placement,
which came amid a global craze for electric
vehicle makers and surging equity mar-
kets, helped trigger a more than 50% rally
in the shares the day after the news. The
investors bought the shares at HK$27.30
each.They closed at HK$6.50 on Friday.

The six are:
○ Chen Hua, the chairman of Kingkey

Group, who personally put HK$5 bil-
lion into the EV startup through a unit,
according to a filing.
○ Wong Kwong Miu, who controls main-
land-listed Shenzhen Centralcon In-
vestment Holding Co., also personally

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Japan’s Gunma
prefecture reports

contaminant
in Moderna
Covid-19 vaccine

EU to reimpose Israel, Montenegro, Kosovo, Lebanon, by Kiyoshi Takenaka
travel curbs on US and North Macedonia were also removed Reuters
amid rise in new from the list.
TOKYO (Aug 30):A contaminant was
Covid-19 cases Travel between the EU and US has been found in Moderna’s COVID-19 vaccine
a point of political contention. The Biden on Sunday in Japan’s Gunma prefec-
by Jasmina Kuzmanovic & Andra Timu administration has kept border restrictions in ture, nearTokyo, the latest such case in
Bloomberg place despite pressure to allow visitors from the country involving the U.S. compa-
allies like the EU that have eased their own ny’s vaccines. A tiny, black substance
ZAGREB/BUCHAREST (Aug 30): Eu- curbs. US officials have cited rising Delta was found in a Moderna Inc vaccine
ropean Union countries have voted to re- infections as one reason for that stance. vial, prompting the prefecture to sus-
impose restrictions on non-essential travel pend inoculation using vaccines from
from the US amid a surge in new coro- EU rules specify that for countries to be the Moderna lot from which the vial had
navirus cases, dealing a fresh blow to the allowed non-essential travel into the bloc come, a Gunma prefecture official said.
tourism industry. the trend of new cases should be stable or
decreasing and that no more than 4% of Japan’s health ministry said on
A qualified majority of ambassadors vot- those tested for the virus are positive.The Saturday two people died after re-
ed to reintroduce the curbs, which were lift- latest US numbers represent the seventh ceiving Moderna’s vaccine shots that
ed in June, according to an EU statement. consecutive increase. were among lots later suspended fol-
lowing the discovery of contaminants.
The US had 588 new Covid-19 cases The guidelines also take into account
per 100,000 inhabitants in the two weeks whether variants of concern have been The government had said that
ending Aug 22, according to the European detected in a particular nation and wheth- no safety or efficacy issues had been
Centre for Disease Prevention and Con- er it has reciprocated on opening travel. identified and that the suspension
trol, well above the limit of 75 set out in was a precaution.The causes of death
the EU guidelines. Germany classified the US as a high- are being investigated.
risk area as of Aug 15, meaning visitors
The guidance from the bloc is a rec- need to show they have been vaccinated, Last week, Japan halted the use of
ommendation and any decision on who have recovered from the disease or present 1.63 million Moderna doses, shipped
to let in, and what restrictions to impose, a negative test result. to 863 vaccination centres nationwide,
ultimately rests with the governments of after the domestic distributor,Takeda
each member state. Countries can also France, Spain, Italy, and Belgium also re- Pharmaceutical, received reports of
choose to accept proof of vaccination to quire some kind of test to show the traveller contaminants in some vials.
waive travel restrictions. has Covid-19 antibodies or proof of vaccina-
tion. But none have imposed quarantine rules. Moderna and Spanish pharma
While countries have largely followed the company Rovi, which bottles Mod-
EU guidelines, there have been times when bloomberg erna vaccines for markets other than
individual nations have diverged from them. the United States, had said at the
time that the contamination could
The move to restrict visitors from the be due to a manufacturing issue in
world’s largest economy is a significant one of Rovi’s production lines.
setback for airlines and travel firms who
have been pressing for a full reopening The vaccine in question in Gunma
of lucrative transatlantic routes. Shares of is from a Moderna lot that is different
Air France-KLM, IAG SA, and Deutsche from those whose use has already been
Lufthansa AG all came under pressure last suspended, the Gunma official said.
week on news of the vote.
Vaccines from the same lot have
been administered to 4,575 people in
Gunma, but the prefecture has heard
no reports of ill health, the official said.

Contaminants were found in
Moderna vaccines in Japan’s south-
ern prefecture of Okinawa, as well.

Read also: India’s Covid-19 vaccine
supply jumps, raising export hopes
Click here

t u e s d a y a u g u s t 3 1 , 2 0 2 1 28 T h e E d g e C E O m o r n i n g b r i e f

MARKETS

CPO RM 4,500.00 -60.00 OIL US$ 72.59 -0.11 RM/USD 4.1552 RM/SGD 3.0897 RM/AUD 3.0296 RM/GBP 5.7232 RM/EUR 4.9029

Top 20 active stocks

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

KNM Group Bhd 184.9 -0.005 0.255 24.39 846.5

Kanger International Bhd 110.6 -0.01 0.045 -68.97 125.8

Bintai Kinden Corp Bhd 110.6 0.105 0.480 -21.95 182.9

Sapura Energy Bhd 81.4 0.000 0.125 0 1997.4

Avillion BHD 78.0 0.000 0.145 123.08 151.2

Hiap Teck Venture Bhd 73.9 0.035 0.580 26.09 1000.4

Sanichi Technology Bhd 72.3 -0.005 0.035 -87.61 49.1

AE Multi Holdings Bhd 65.8 0.005 0.045 -63.15 97.4

Serba Dinamik Holdings Bhd 53 -0.01 0.42 -76.14 1558 World equity indices

Scope Industries Bhd 52.9 -0.015 0.295 -0.79 340.3

Public Bank Bhd 50.7 0 4.18 1.46 81136.7 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

BCM Alliance Bhd 49.3 0 0.065 -72.82 46.8 (%) (%)
DOW JONES 35,455.80 242.68 0.69 INDONESIA 6,144.90 103.54 1.71
AYS Ventures Bhd 48.2 0.060 0.590 84.38 224.4

Vortex Consolidated Bhd 47.9 -0.005 0.08 -58.86 53.2 S&P 500 4,509.37 39.37 0.88 JAPAN 27,789.29 148.15 0.54

Ta Win Holdings BHD 46.5 0.01 0.17 126.67 580.3 NASDAQ 100 15,432.95 154.43 1.01 KOREA 3,144.19 10.29 0.33

Destini Bhd 42.7 0.02 0.235 -12.96 358.4 FTSE 100 7,148.01 23.03 0.32 PHILIPPINES 6,786.62 -33.91 -0.50

TFP Solutions Bhd 41.6 -0.015 0.215 -6.52 114 AUSTRALIA 7,504.54 16.25 0.22 SINGAPORE 3,102.11 21.34 0.69

Seacera Group Bhd 41.3 0 0.195 -18.75 93.9 CHINA 3,528.15 5.99 0.17 TAIWAN 17,396.52 186.59 1.08

D’Nonce Technology Bhd 39.6 0.055 0.51 2 159.7 HONG KONG 25,539.54 131.65 0.52 THAILAND 1,633.77 22.57 1.40

DPI Holdings Bhd 38.2 0.045 0.485 162 354.1 INDIA 56,889.76 765.04 1.36 VIETNAM 1,328.14 14.94 1.14

Data as compiled on Aug 30, 2021 Source: Bloomberg Data as compiled on Aug 30, 2021 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)

Pegasus Heights Bhd 0.015 50.000 2592.2 -40.00 159.0 Priceworth International Bhd 0.01 -33.33 6530.8 -66.67 50

Vsolar Group Bhd 0.015 50.000 2356.1 -62.50 68.5 Eduspec Holdings Bhd 0.015 -25.00 679.2 -25.00 37.5

Khind Holdings Bhd 3.960 29.840 2773.0 35.15 158.6 EA Holdings Bhd 0.020 -20.00 530.6 -33.33 101.4

Bintai Kinden Corp Bhd 0.480 28.000 110602.6 -21.95 182.9 Kanger International Bhd 0.045 -18.18 110613.8 -68.97 125.8

Nexgram Holdings Bhd 0.030 20.000 16709.9 -33.33 124.4 Orion IXL Bhd 0.045 -18.18 30236.7 -43.75 38.5

Borneo Oil Bhd 0.03 20 5949 -25 214.9 Key Alliance Group Bhd 0.025 -16.67 493.6 -50 58.9

Green Ocean Corp Bhd 0.035 16.670 32128.2 -61.11 73.9 Talam Transform Bhd 0.025 -16.67 130.0 -16.67 107.4

Ni Hsin Group Bhd 0.145 16.000 18495.4 -48.21 63.6 Paragon Globe Bhd 0.410 -14.58 2016.9 97.81 166.1

Ho Wah Genting BHD 0.260 15.560 21465.2 -58.73 161.1 Anzo Holdings Bhd 0.035 -12.50 178.0 -58.82 39.1

Tong Herr Resources Bhd 2.920 15.420 780.1 25.32 448.3 Metronic Global Bhd 0.035 -12.50 2372.4 -65.00 72.8

XOX BHD 0.04 14.29 1830.8 -63.64 161.4 Sanichi Technology Bhd 0.035 -12.50 72338.7 -87.61 49.1

Mlabs Systems Bhd 0.040 14.290 485.0 -50.00 48.3 MQ Technology Bhd 0.050 -9.09 2439.1 -62.96 36.5

Brahim’s Holdings Bhd 0.260 13.040 9076.9 -21.21 79.9 Menang Corp M Bhd 0.450 -8.16 431.1 -18.92 216.4

AE Multi Holdings Bhd 0.045 12.500 65758.6 -63.15 97.4 YGL Convergence Bhd 0.235 -7.84 5689.9 51.61 60.0

Scomi Group Bhd 0.045 12.500 5072.1 50.00 43.2 Hengyuan Refining Co Bhd 4.120 -7.83 3111.9 -31.22 1236.0

Astral Asia Bhd 0.135 12.500 624.6 0.00 89.1 M3 Technologies Asia Bhd 0.06 -7.69 3303.5 -7.69 53.6

D’Nonce Technology Bhd 0.510 12.090 39614.8 2.00 159.7 Bina Puri Holdings BHD 0.060 -7.69 22212.6 -45.45 85.9

AYS Ventures Bhd 0.590 11.320 48159.4 84.38 224.4 Alam Maritim Resources Bhd 0.06 -7.69 7362.8 -29.41 86

DPI Holdings Bhd 0.485 10.23 38247.4 162 354.1 TAS Offshore Bhd 0.3 -7.69 1017.4 5.26 52.4

Encorp Bhd 0.325 10.17 5263.4 38.3 102.8 Ark Resources Holdings Bhd 0.485 -7.62 593.2 67.24 30.7

Data as compiled on Aug 30, 2021 Source: Bloomberg Data as compiled on Aug 30, 2021 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)

Genetec Technology Bhd 31.1 2 708.5 1697.69 1596.9 Kesm Industries Bhd 12.280 -0.400 25.1 -9.57 528.2

Dutch Lady Milk Industries BHD 35.18 1.78 33.2 -6.19 2251.5 Hengyuan Refining Co Bhd 4.120 -0.350 3111.9 -31.22 1236.0

Khind Holdings Bhd 3.96 0.91 2773 35.15 158.6 Greatech Technology Bhd 6.9 -0.19 4634.9 51.65 8638.9

Petronas Gas Bhd 16.8 0.54 1477 -1.91 33242.7 Malaysian Pacific Industries Bhd 44.020 -0.180 385.8 69.57 8755.4

SamEngineering&EquipmentMBhd 14.9 0.48 1156.9 102.17 2016.7 CI Holdings Bhd 4.000 -0.180 507.9 110.53 648.0

Tong Herr Resources Bhd 2.92 0.39 780.1 25.32 448.3 Sime Darby Plantation Bhd 4.030 -0.140 9411.9 -18.86 27870.3

Heineken Malaysia Bhd 22.8 0.28 43.5 -0.96 6887.8 OM Holdings Bhd 2.67 -0.12 351 0 1972.1

Harrisons Holdings Malaysia Bhd 4.5 0.26 95.2 14.8 308.1 Lii Hen Industries BHD 3.090 -0.120 428.7 -22.36 556.2

AEON Credit Service M Bhd 12.06 0.24 122.2 0.5 3079 Batu Kawan Bhd 20.900 -0.100 11.3 16.76 8255.9

Asia File Corp BHD 2.53 0.21 500.4 25.25 492.7 PIE Industrial BHD 3.510 -0.090 2322.4 46.36 1348.0

Malaysia Airports Holdings Bhd 6.63 0.21 4120.8 11.99 11000.4 UWC BHD 5.500 -0.090 636.0 12.24 6053.5

Allianz Malaysia Bhd 13.16 0.2 83.3 -10.96 2336 Riverview Rubber Estates BHD 3.060 -0.090 6.3 0.94 198.4

Fraser & Neave Holdings Bhd 27.88 0.2 264.2 -13.09 10225.8 Ta Ann Holdings Bhd 2.760 -0.080 1654.3 -8.91 1215.7

MISC Bhd 7.2 0.2 4373.3 4.8 32139 Mi Technovation Bhd 3.810 -0.070 3436.9 -3.30 3413.8

Ann Joo Resources Bhd 2.55 0.19 13805.1 62.42 1382.4 MNRB Holdings Bhd 1.350 -0.070 1263.7 38.46 1057.2

Malaysia Smelting Corp Bhd 2.37 0.18 2073.4 65.73 995.4 Paragon Globe Bhd 0.410 -0.070 2016.9 97.81 166.1

Hong Leong Bank Bhd 19.18 0.18 2298.4 5.38 41576.8 Dataprep Holdings BHD 1.120 -0.060 9917.3 522.22 750.4

Petronas Dagangan Bhd 19.96 0.16 773.5 -6.73 19829.3 Supercomnet Technologies Bhd 1.450 -0.060 2850.8 -21.36 1094.9

Toyo Ventures Holdings Bhd 2.48 0.15 280 46.75 265.4 Mercury Industries BHD 1.090 -0.060 1.0 41.56 48.2

Ajinomoto Malaysia Bhd 16.3 0.14 15.5 1.75 991 Lysaght Galvanized Steel Bhd 2.04 -0.060 2.1 -12.82 84.8

Data as compiled on Aug 30, 2021 Source: Bloomberg Data as compiled on Aug 30, 2021 Source: Bloomberg

malaysia s p e c i a l r e p o r t | august 30, 2021

ebcaNufoNauiNltdtdoioutimNhrNgyee-

SR2 nation-building and
the future economy
AuGuST 30
2021

Contents Foreword

04 On Aug 31, Malaysia celebrates its 64th year of independence. This nation of ours has come a
long way. In the last 63 years, it has had its fair share of upheavals and crises, yet, each time, we
Tech, women and nation-building managed to ride out the storm and battled on.

Technology is levelling the playing field for women-led Now, Malaysia is facing a period of turbulence like never before, brought about by an interplay
start-ups. But although women are acknowledged as of several forces happening at almost the same time — a health crisis, political uncertainties and
a formidable economic force and are crucial to nation- a threat to economic growth posed by a series of prolonged lockdowns.
building, there is still more work to be done in improving
For sure, Malaysia is not alone. Almost every economy in the world is facing very tough chal-
08access to financing and capacity building. lenges, not least because of the pandemic and geopolitical tension, but also due to the rapid pace
of technological advancement, which is disrupting the global economic landscape and perhaps
Making inroads into healthcare with AI even creating a new world order.

Lim Meng Hui, the founder of AI start-up SmartPeep, It is time to re-tool for the future. Nation-building does not involve just the political and social
dimensions but also economic development and growth. This is where the power of youth can
10is seeing his hard work and persistence pay off be tapped to help the Malaysian economy evolve and future-proof itself.

Agents of change Youths are the building blocks of a nation, and they drive transformation by spurring eco-
nomic, social and political reforms. Youths can contribute to nation-building in several ways and
Nadhir Ashafiq and Goh Chee Hau are using their these include creating employment for themselves and others, and being at the forefront of the
digital logistics platform, TheLorry, to uplift the status country’s economic development.

14and income of lorry drivers Amid a daunting current environment and with bleak near-term prospects, it is important
always to have hope and to work towards a better tomorrow.
The future economy is green
The good news is that in Malaysia, a growing number of young people have already begun
Sustainability is picking up speed as a major consideration to make an impact on the economy and, in their own way, contribute to national growth. Indeed,
in economic development initiatives and we see a growing the digital revolution that is driving change across the globe is led mostly by the younger gener-
number of green advocates in Malaysia championing ation. And Malaysia is no exception.
urban sustainability. A focus is on the role of green
technology and the green economy in creating sustainable In this special pullout to mark Malaysia’s 64 years of independence, we feature some of the
young people, some of whom are entrepreneurs, who are contributing to nation-building through
16and liveable cities. their economic endeavours.

Making that last mile count Many of them have success stories to tell, and they represent a beacon of hope at a time
when sentiment is dampened by the pandemic. Notably, their success rides on technology, a
A young start-up competing against established names key driver of the future economy. They are enterprising individuals who have boldly ventured
in the logistics field can sometimes be likened to the story into uncharted waters.
of David versus Goliath, but ZeptoExpress founder
Mohd Izzairi Yamin reckons that it may well be playing Lim Meng Hui, 38, is the founder of artificial intelligence-powered start-up SmartPeep, which
provides healthcare solutions, especially for elder care. Recognising that technology, including
18with the big boys in three years AI, is the way of the future, he did not allow his early struggles to defeat him. Today, he has made
inroads into the healthcare sector. His advice is: “Some of us may be walking in the dark, but we
Transforming industries must not give up hope.”
and adding value
We also spoke to Mohd Izzairi Yamin, the founder of logistics company, ZeptoExpress.
Jerome Kay and Lau Yoke Wee left their jobs a couple of Established in 2016, the crowd-sourced, on-demand delivery platform allows customers to make
years ago to set up Virtual X in a bold move to take virtual delivery bookings at their convenience. From the first service, ZeptoBike, the company has since
and augmented reality (VR and AR) beyond gaming to expanded its offerings to include the transport of larger, bulkier items via ZeptoCar, ZeptoTruck,
ZeptoAir and, most recently, a carbon-friendly option, ZeptoRun. In addition, the company has
20drive change across industries introduced ZeptoStore, its warehousing and fulfilment solution for clients in the fast-moving
consumer goods business.
Empowerment is key
In the following pages, we feature many other stories, including one on several tech start-ups
From Grow the Goose to Borneo Cocoa, Ida Faranina founded by women, reinforcing the view that women have become a major force in the economy.
Othman’s ventures are focused on helping communities
help themselves — by creating awareness on financial Hopefully, these stories will inspire others; that despite the odds, it is not all doom and gloom.
literacy, especially among children, and guiding cocoa
Anna Taing
22farmers in Sabah to earn sustainable incomes Managing Editor

Fintech to help drive EdITorIAl ASSISTANT CHIEF AdvErTIsIng & MArkETIng SHAFINA SYAHRIR CorporATE
economic revival EDITOR-IN-CHIEF COPY EDITORS CHIEF COMMERCIAL OFFICER (017) 281 4787 PuBLISHER & GROuP CEO
AZAM ARIS EVELYN TuNG, SHARON TEH SHANNON LEONG HO KAY TAT
Financial technology (fintech) is fast becoming a MANAGING EDITOR KENNETH FRANCIS MARTINuS (012) 313 9056 (012) 677 5345 CHIEF OPERATING OFFICER
central part of the financial services industry and future ANNA TAING SENIOR COPY EDITORS GENERAL MANAGER ACCOuNT MANAGERS LIM SHIEW YuIN
economy. The fintech space has attracted a huge crowd CONTRIBuTORS CHEW Ru Ju, FONG LAI KuAN BRYAN ANG
of local start-ups and young entrepreneurs, and many of SREEREMA BANOO, LEE MEI GEOK, (012) 386 2831 (012) 317 8473 WE WELCOME YOuR
them have begun to establish a strong foothold in ELAINE BOEY, KuEK SER SHANTHI MuRuGIAH SENIOR SALES NICHOLAS HONG COMMENTS, LETTERS AND
the financial sector. KWANG ZHE, PATHMA ART DIRECTOR MANAGERS (012) 768 0881 CRITICISM.
SuBRAMANIAM SHARON KHOH GEETHA PERuMAL YVETTE ERIN PHONE (03) 7721 8000
EXECuTIVE EDITOR ASSISTANT (016) 250 8640 (016) 273 0856 EMAIL [email protected]
(PRODuCTION) ART DIRECTOR GREGORY THu HEAD OF MARKETING PSEuDONYMS ARE ALLOWED
OOI INN LEONG LEE WAN YEE (012) 376 0614 SuPPORT & AD TRAFFIC BuT PLEASE STATE YOuR
CHIEF COPY EDITORS SENIOR ACCOuNT MANAGERS LORRAINE CHAN FuLL NAME, ADDRESS AND
ELAINE LIM, EVON SEAH MANAGER, AD TRAFFIC CONTACT NuMBER (TEL/FAX)
MAH PIN PIN (016) 973 8699 NORMA JASMA FOR uS TO VERIFY.
KENNY LIM EMAIL
(014) 334 2733 [email protected]



SR4 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

nTeactiho,nw-boumiledninagnd and healthtech,” says MDEC CEO
Surina Shukri.

MDEC’s initiatives are attracting
more women participants.Four out of
five of the participants in its Perkh-
idmatan eDagang Setempat (PeDAS)
programme — which assists rural
entrepreneurs in marketing their
products on e-commerce platforms
through facilities made available at
32 rural internet centres nationwide — are women.
Women also make up 63% and 61% respectively
of MDEC’s eUsahawan Muda and eUsahawan Micro
Technology is levelling the playing field for women-led start-ups. programmes. More than half of the participants in
But although women are acknowledged as a formidable economic the Global Online Workforce (GLOW Penjana) pro-
force and are crucial to nation-building, there is still more work to gramme,which empowers Malaysians to earn income
be done in improving access to financing and capacity building. online, are women. “Over the past five years, MDEC
has trained more than 127,000 women entrepreneurs
through eUsahawan programmes,” Surina says,adding
that reported sales from these entrepreneurs totalled
RM349 million over the same period.

SBY SREEREMA BANOO Changing view of women at work
oon after she started her career in the man- One of the ways technology has helped is by making
ufacturing industry,Nuraizah Shamsul Ba- it easier to network, seek assistance and mentorship,
harin knew that she would one day start says Surina.During the Covid-19 pandemic,technology
her own business. “I’d always wanted to do offered a competitive advantage to start-ups and small
something that was my own. My friends businesses. “In the post-Covid-19 world, technology
will also provide extra advantages to those who have
and I often talked about how we should be already adopted tech in their business,” says Nuraizah.
business owners instead of working at the factory, so In Mediven’s case, the digital economy and video
the six of us made a pact to do that someday.Three of conferencing tools have given the chance for the com-
us did that — including myself — but even then,I was pany to win tenders in various countries despite
so worried. Should I or should I not? That was when the various Movement Control Orders (MCOs),
one of my friends’ dad gave me a good piece of advice: Lim discloses.She adds that digital technology is
thinking about things will not move it forward, you helping women manage their time and multitask,
have to actually take that step.” You are not seen especially in Asian communities, where a wom-
She began her entrepreneurial journey in 2006, based on your an’s place is still considered to be in the home.
when an opportunity arose to acquire a technology gender or your Technology aside, Piktochart co-founder Goh
company that was about to cease operations. Steadi- race or even your Ai Ching says one should not discount the impact
ly, she grew the business into a company that was 17 nationality. You are of changing societal norms and expectations con-
times the net book value of the initial capital.In April as good as your cerning women,which has helped them progress
2011,she turned that business into Madcat World and products — that is in their careers. Goh, who founded Piktochart (a
has not looked back since. web app that helps users create infographics,pres-
Over the years, the company,which builds mobile the true value that entations,reports and banners) with her husband
apps, has received many accolades for its products speaks on your Andrea Zaggia in 2011,shares her own family his-
and is today one of the leading providers of Islamic behalf. tory to reiterate her point.
content and applications.
Nuraizah “My mum was always making things; the
An electrical engineer by training, Nuraizah says clothes she made for us were so well made and
technology has given her the opportunity to be a busi- in the early and fast detection looked so good that some boutiques in Penang
ness owner.“My business exists because of technology. of infectious diseases. back then would buy her designs. I remember
You are not seen based on your gender or your race or Through their former asking her why she didn’t pursue a career of her
even your nationality.You are as good as your products jobs as officers in charge of own and her response was, ‘I have four children.
— that is the true value that speaks on your behalf.” commercialising research at USM, Lim and Ariff had How am I going to do that?’ It’s not been a question for
Lim Li Sze,co-founder of Medical Innovation Ven- knowledge of available research as well as a network women of my age and generation, but it was an issue
tures (Mediven), agrees. “It does not matter who the of scientists and business professionals to tap into. for my mother and those in her generation.
player is,but which product provides a better solution “We had a good idea to help people and saw a good “So,it’s societal change that’s made the difference,
and is easier to use,” she adds.Lim,who has a doctor- opportunity. We started Mediven to offer test kits perhaps more so than technology, although technol-
ate in genetics,started the diagnostics company with that detect DNA/RNA of infecting bacteria or viruses ogy is one of the things that have helped accelerate
Ariff Ismail — a former colleague at Universiti Sains in the human body,” says Lim, who is the company’s the shift in how society views women in careers and
Malaysia (USM) — back in 2012. operations director. professions,” she says.
The goal was to improve diagnostics for tropical At the onset of the Covid-19 pandemic,the company Although women-led start-ups have made head-
infectious diseases using the wealth of genomic in- joined the race in early 2020 to come up with one of the way in their respective industries,challenges exist,in
formation being generated on earliest tests for the virus. “Currently,we are sup-
pathogens from R&D work to plying Covid-19 real-time PCR (polymerase chain
create diagnostic tools that aid reaction) and antigen test kits to the hospitals and
clinics in Malaysia,as well as the 20-odd countries
we are in,” she says.The company,she adds,recent-
Societies with ly also started marketing Covid-19 self-test kits.
greater gender
equality not Nuraizah’s and Lim’s stories are just two of the
only offer better many illustrating technology’s impact on an en-
trepreneur’s journey. Malaysia Digital Economy
socioeconomic Corporation (MDEC),which was set up to accelerate
opportunities for the growth of the country’s digital
women, but tend economy,says besides more women
to grow faster and owning and operating businesses,
it has also noticed the increasing
more equitably. participation of women entrepre- We are observing
Lim neurs in artificial intelligence,big more female-
data analytics and the Internet of focused companies
Things,with their businesses in ei- growing in the tech
ther e-commerce or software. industry, and they
are scaling up fast.
“We are observing more fe-
male-focused companies growing
in the tech industry,and they are scal-
ing up fast. We are also seeing more Surina

women breaking into the fintech sector
and technologies like drone services

It helps to have This year,the second cohort of SR5
female leadership AWE launched on Aug 19 includes
because they 50 women. AUGUST 30
would then 2021
mentor the next Initiatives like this also help to
generation. bridge the knowledge and skills The Boolean Babes (from left):
gap faced by women entrepre- Ellisa, Fedelia, Azlinda and Paige
particular access to funding Goh neurs, not just those within the
opportunities. Crunchbase technology industry. Apart from GIRLS WHO
data from the end of last their experiences in start-up de- CODE
year showed that not only velopment programmes,women
was there a retreat in total entrepreneurs say that having Four Form Five schoolgirls from
funding for female-led start-ups globally,“the propor- good women leaders in the indus- SMK St Joseph in Miri who call
tion of dollars to female-only founders also declined, try and mentors helps. “It helps themselves the Boolean Babes talk
to 2.3% compared to 2.8% in 2019”. about their recent win in a global
to have female leadership be- mobile app coding competition, and
What is equally disconcerting — as an article in Har- cause they would then mentor their journey and aspirations in tech
vard Business Review earlier this year pointed out — is the next generation,” says Goh.
that this 2.8% figure,while measly,was an all-time high. Fedelia Chan Wan Shin’s interest in coding
Nuraizah adds that train- started from a STEM (science, technology,
The lack of gender equality in funding start-ups — ing alone or funding does not engineering and mathematics) programme
fewer than 10% of decision-makers at venture capital translate into business growth. that she joined at her school’s Innovation Club.
(VC) firms are women, and most firms do not have a “It’s the engagement with There, she was introduced to Arduino, an open-
single female partner — might explain some of the mentors and the support net- source electronics platform based on easy-to-use
funding obstacles women entrepreneurs face. work that help bring clarity to hardware and software, and this eventually led her
our vision and thoughts. Not many women entre- to discover programming languages and the world
To this end,start-up development programmes have preneurs are trained in building a business,so a lot of coding. “What I enjoy the most about coding is
been a plus for women entrepreneurs,especially those of things are learnt on the job. Mentors offer that that it calls on critical thinking and problem-solving
in the tech fields.Piktochart,for instance,was part of outsider’s view of your business and that’s important skills,” says the 17-year-old from Miri, Sarawak.
global venture capital firm SOSV’s Chinaccelerator, because oftentimes,we are too busy fire-fighting to
and more recently, MADCash (from Madcat World) see what is happening,” she says. At a mobile app class at Realfun Learning
was selected to join MaGIC’s fifth cohort of its global Centre, Fedelia learnt about Technovation Girls, a
accelerator programme. Good for women, good for the economy global mobile app coding competition for young
Women helping women In Malaysia,it is estimated that some 20% of small and women (ages eight to 18) interested in becoming
Although the deck appears stacked against women en- medium enterprises (SMEs) are women-owned.Women tech entrepreneurs and leaders. She roped in her
trepreneurs when it comes to funding,there are some make up 35% of the total digital economy workforce, classmates Ellisa Ee Jia Xin, Paige Kaite Aran and
bright spots.Surina says MDEC’s partnership with Co- according to MDEC. Although the country’s female Azlinda Aryanshah Chin, who were all intrigued by
coon Capital for its Female Founders Mentoring Hours labour force rose between 2010 and 2018, from 46% the idea. The students of SMK St Joseph, Miri, who
is an effort to boost female founders’ access to capital to 55.2%, there is work to be done on gender equality. are sitting for their Sijil Pelajaran Malaysia (SPM)
and capacity building.She adds that two of MDEC’s VC Worryingly,the country appears to have slipped in the examination this year, got to work quickly.
partners in its investor matching initiative, namely World Economic Forum’s Global Gender Gap Index for
Vynn Capital and Inovasi Ventures (a female-founded 2021,falling eight places to rank 112 out of 156 countries. The team spent three months working on the
VC),target female-focused businesses and economics. The role of women in the economy is crucial in app, under the guidance of Teo Yuang Teck, Realfun
nation-building. “Women need to be given equal op- Learning Centre founder and director, who teaches
Nuraizah’s latest project,MADCash,is another ini- portunity to grow and succeed. The World Economic children and teens how to create apps, games and
tiative aimed at bridging the financing gap by provid- Forum has shown that societies with greater gender animation through coding.
ing access to microfunds for women in the B40 group equality not only offer better socioeconomic oppor-
to start or upgrade a micro business as a new or addi- tunities for women,but tend to grow faster and more Calling themselves the Boolean Babes, the
tional income stream for the household. equitably,” says Lim. team devised an app called the Solace Sphere,
Women entrepreneurship is increasingly understood which is to be used as a support system for victims
MADCash provides a platform for individuals and to be a key driver of economic growth and job creation, and survivors of domestic violence.
organisations to donate to the MADCash fund,which says Surina, pointing to a 2018 report by McKinsey &
will be distributed to qualified women in the B40 group Co, which forecasts a collective US$4.5 trillion (RM19 Disguised as a Magic8Ball game, the app
as interest-free microloans.The loan will be serviced trillion) annual growth in the GDP of Asia-Pacific coun- helps users identify and assess their current
through a weekly payment of up to 10 months.Repay- tries by 2025 with the advancement of women’s equality. situation, acquire all the necessary information
ments will be channelled back into the fund for the This is a 12% rise over the business-as-usual trajectory. and feel supported. The app, which has not
next qualified individuals,thus creating an ecosystem Critical to Malaysia’s post-pandemic economic re- been commercialised, also connects users with
of women funding and growing women. covery are women-owned and led businesses,from gig counsellors and other survivors of domestic abuse.
economy workers to owners of micro businesses. “So,
Rolled out in April last year during the first MCO, we also need procurement policies that support wom- The team members were each responsible for
MADCash funded three women F&B entrepreneurs with en-owned businesses and tax incentives for corporates specific areas — coding development (Fedelia),
a RM1,000 loan each in the pilot run, says Nuraizah. that adopt these policies,” says Nuraizah. marketing (Paige), app design (Azlinda) and
These loans have been repaid, and with the cash in- Lim believes a gender-balanced economy also en- research and development (Ellisa). Beating more
jection the entrepreneurs netted revenues totalling sures the well-being of families. “Studies of different than 40 teams of semi-finalists across Asia, the
RM17,000, she says. economies in various stages of development, such as Boolean Babes emerged as the Regional Winner
Bangladesh,Brazil,Canada,Ethiopia and the UK,have (Asia) under the senior category, earning them
The success of this pilot project led Nuraizah,who shown that women generally devote more of the house- an invitation to share their work at the App Expo
is president of the Women Entrepreneur Network As- hold budget to education, health and nutrition than World Summit held earlier this month.
sociation (WENA), to look at ways the not-for-profit men.Women entrepreneurs tend to be more sensitive
organisation could scale up its business support pro- to human and family issues. There are also gains in Although they don’t have entrepreneurship on
grammes. “The pandemic gave us an opportunity to terms of poverty reduction,environmental sustainabil- their minds, the world of STEM appeals to some of
take the helm of the Academy for Women Entrepre- ity,consumer choice,innovation and decision-making them, who say they plan to explore areas like digital
neurs or AWE (an online business and finance acade- on a wider set of issues,” she says. animation, artificial intelligence and engineering.
my created by the Thunderbird School of Management Having women at the forefront of leadership is a
and the University of Arizona).With funding from the future that we should all aspire towards, says Goh.
US Embassy in Kuala Lumpur in August 2020,we took “We’ve seen,for example,how women-led countries
on 30 women entrepreneurs to help them grow their had a better response to the Covid-19 pandemic.
business,” she says. They were more balanced in their approach, trans-
parent and were able to get the buy-in of their peo-
ple,” she notes.
Society and women themselves have a role to play
in advocating for women. “We need young girls and
boys to see women stepping up as business owners
and leaders — they need to see their mothers, sisters,
aunties,neighbours take on these roles.Without prom-
inent women leaders in society, we are missing the
role models to spark this interest in contributing to
nation-building.What we badly need are more women
in government-linked companies, corporations and,
specifically,politics.Women need to play a much big-
ger role in the government to contribute to the growth
of Malaysia,” says Nuraizah.
E

SR6 AUGUST 30, 2021

SEPT 29
2009

INVEST SELANGOR CONTINUES TO ATTRACT
INVESTMENTS DURING PANDEMIC

SELANGOR is poised to beneĆt from The hybrid method was introduced in SIBS 2020, allowing participation through virtual sessions
investments that are expected to enter
the country this year. The United Nations modern, high-quality and mutually beneĆcial of transforming the state into Asean’s digital to be digitalised and there are abundant
Conference on Trade and Development’s economic partnership that includes technical hub. This is done via Invest Selangor’s Selangor opportunities. The partnerships facilitated by
(UNCTAD) World Investment Report 2021 cooperation and capacity building. Information Technology and Digital Economy Sidec are expected to accelerate the growth of
expects foreign direct investment (FDI) ćows to Corporation (Sidec), which has established start-ups in Selangor,” says Hasan.
Southeast Asia to rebound this year, but notes Hasan has observed an increase in activities partnerships between state government agencies
that the quantum of increase will depend on how in Selangor’s digital ecosystem and points and start-ups during the year. “For example, travel start-up Tourplus
well countries are able contain new waves of out that Invest Selangor, much like other Technology Sdn Bhd recently signed a
Covid-19 infections (see box story). government entities, had to quickly digitalise “There is a misconception that several big memorandum of understanding (MoU) with
its operations during the Ćrst government- companies have monopolised the country’s Tourism Selangor to launch an app that can help
“Selangor has a target of securing mandated lockdown last year. digital economy. At Invest Selangor, we see tourism operators to digitalise and prepare for
RM12 billion worth of investments for its that 80% of the local economy still needs a post-Covid-19 recovery. Sidec also facilitated
manufacturing sector in 2021. This target is “We used to travel to meet our potential the collaboration of two agritech start-ups,
based on the current investment trends as investors in person. However, we accelerated At Invest Selangor, we namely Havva and Kapitani, with Perbadanan
well as global reach of the Covid-19 pandemic. our use of technology last year. Since we could see that 80% of the local Kemajuan Pertanian Selangor (PKPS). Havva will
Looking at the amount that we managed to not travel, we started to communicate with economy still needs to be develop a 3,000 sq ft hydroponics farm in Shah
secure in the Ćrst quarter, we hope to be able potential investors on digital platforms, through digitalised and there are Alam while Kapitani will provide basic Ćnancial
to achieve the target for the year,” says Datuk media engagements and by virtually networking abundant opportunities.” services to traders and farmers at Pasar Borong
Hasan Azhari Idris, CEO of Invest Selangor Bhd. with representatives from different countries Selangor.”
such as embassies, chambers of commerce and DATUK HASAN AZHARI IDRIS
The Malaysian Investment Development multinational companies,” he says. This year, Sidec will hold the Selangor
Authority (MIDA) revealed that despite the Accelerator Programme (SAP) for its fourth
Movement Control Order implemented Invest Selangor’s Selangor International cohort of early-stage start-ups. SAP is a
early this year, Selangor successfully secured Business Summit (SIBS), a popular annual structured three-month programme that
investments of RM4 billion for its manufacturing event, has also evolved digitally. Last year, it was will develop 30 early-stage start-ups into
sector in the Ćrst quarter (1Q2021). held virtually for the Ćrst time and achieved a investment-ready businesses. Participants
potential transaction value of RM1.093 million will receive guidance from mentors and gain
In total, MIDA approved RM80.6 billion and attracted more than 177,974 online visitors. industry-related exposure. Those selected in
worth of investments in the manufacturing, This year, Invest Selangor has plans to transform 2021 include six start-ups that focus on agritech,
services and primary sectors in Malaysia during SIBS into a hybrid edition where exhibitors can six Ćntech start-ups, Ćve greentech start-ups,
1Q2021. This amount represented a surge of choose to participate in person or virtually. three edtech start-ups and one that deals in
95.6% from RM41.2 billion a year ago. proptech (smart city solutions).
“We also added new features to SIBS 2021,
“The pandemic has propelled the importance such as a monthly B2B (business-to-business) “Sidec continues to focus on three target
of digitalisation. Invest Selangor is focused on meeting for our F&B exhibitors. This virtual groups: e-commerce merchants, start-ups
growing the digital industry in Selangor and we meeting, which started in April, has already and SMEs, especially those from traditional
are looking at promoting global business services enabled 16 buyers from eight countries to industries that are looking to digitalise their
as well as attracting tech players that focus on operations. Despite the prolonged lockdown
data centres, cybersecurity, application software connect with our F&B this year, Sidec implemented Ćve programmes
development, cloud computing, the Internet of exhibitors. We will continue in 1H2021. These are an e-bazaar for the
Things (IoT) and others,” says Hasan. to facilitate monthly B2B Chinese New Year and Hari Raya celebrations,
meetings until we hold SIBS an e-commerce class, the Online 100 and Brands
INVESTMENT PROMOTION IN 2021 this November,” says 100 programme, SAP and the Selangor SME
THE NEW NORMAL Hasan. Digitalisation Matching Grant,” says Hasan.
UNCTAD’s World Investment Report 2021
reports foreign investments rising particularly Invest Selangor is also The Selangor SME Digitalisation Matching
in digital infrastructure (5G networks and data continuing its efforts to Grant was given to applications that provide
centres) and technology-related activities and drive digital transformation digital marketing, cloud-based accounting,
as a result of the Regional Comprehensive of Selangor towards its goal human resources and payroll systems,
Economic Partnership (RCEP) agreement. RCEP e-commerce, e-PoS (point of sales) and payment
was signed by the 10 Asean member states and gateway services. As at July, a total of 300 SMEs
its Ćve regional partners (China, Australia, Japan, and start-ups had beneĆted from this initiative.
South Korea and New Zealand) on Nov 15, 2020.
The free trade agreement aims to establish a “Moving forward, Selangor will continue
to provide the best environment for the
Future-proofing the economy development of a digital ecosystem by promoting
with technology adoption fair competition, market access and programmes
that nurture talent and start-ups. We expect
Selangor-driven initiatives to stem effects of Covid-19 the digital industry and other industries such as
F&B and tourism to rebound when the pandemic
The global pandemic has severely affected ćows entire workforce can return to work safely. had implemented this programme, known as Pre- comes to an end,” says Hasan.
of foreign direct investment into Southeast Asia, To address the spread of the coronavirus, the venting Outbreak at Ignition Site (POIS).”
a source of global FDI growth in the past decade. Meanwhile, Invest Selangor will continue to
According to the World Investment Report 2021 Selangor government has implemented three in- The third initiative is the state government’s attract investments to the state with a series of
by the United Nations Conference on Trade and itiatives, says Datuk Hasan Azhari Idris, CEO of vaccination programme (Selvax), which is reported events for the rest of this year. They include SIBS
Development (UNCTAD), FDI ćows to this re- Invest Selangor Bhd. to have received an overwhelming response from 2021, the Selangor Aviation Show 2021, virtual
gion declined by 25% to RM136 billion in 2020. the private sector. As at Aug 11, a total of 270,696 investment missions to Turkey, India, Germany,
“The state carried out a free screening pro- vaccine doses had been administered in the state. US, Taiwan, Hong Kong and Australia, as well
Key reasons for the slowdown in investments gramme from May 8 to June 10. This programme, as roundtable meetings with embassies and
were reported to be lockdown measures, succes- called Skim Peduli Sihat, was done throughout “The pandemic has posed many challenges international chambers of commerce.
sive waves of Covid-19 infections, supply chain all 56 state constituencies in Selangor and as at but steps are being taken to minimise its impact
disruptions, economic uncertainties and delayed June 10, a total of 97,565 individuals had under- and spread. From an investment perspective, the Hasan adds that Invest Selangor will also
investment plans. Companies located in places gone swab tests. pandemic has accelerated the growth of certain come up with a new Ćve-year strategic plan
with extended lockdowns such as Selangor, which industries such as e-retailing, warehousing and (2022-2026) to identify and further develop key
consistently recorded the highest number of in- “Another initiative is a cross-sectoral pro- logistics. The growth of these industries have industries in Selangor.
fections in the country in the Ćrst half of 2021, gramme between the government and the private enhanced Selangor’s prospects as an investment
are invariably concerned about when their sector that aims to reduce the risk of a Covid-19 destination among local and foreign investors,”
outbreak in places with large worker communities. says Hasan.
As at Aug 3, at least 1,500 factories in Selangor



SR8 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

AB Y KUEK SER KWANG ZHE
rtificial intelligence (AI) is expect-
ed to take the world by storm and
form an essential part of the future
economy. And young Malaysian
entrepreneurs such as Lim Meng
Hui, a start-up founder and PhD
holder,are well-positioned to ride such a trend.

Lim’s AI-powered solution is already being
used in hospitals,nursing homes and day care
centres to prevent patients and the elderly from
falling and hurting themselves.

Various research reports indicate that the
demand for AI is expected to grow at a remark-
able pace in the years to come.For one,Shang-
hai-based market research firm Facts and Fac-
tors estimates that the global AI market size
will grow to US$299.64 billion in 2026 from just
US$29.86 billion in 2020, which translates to
a compound annual growth rate of 35.6%.For
comparison,the semiconductor market grew
6.5% to US$439 billion in 2020 from a year ago.

Lim, 38, is the founder of SmartPeep, a
Johor-based start-up that uses AI to help care-

MwintiatokhhinAegIailnthrocaardes

Lim Meng Hui, the founder of AI start-up SmartPeep,
is seeing his hard work and persistence pay off

givers take better care of their patients and the ferring to use a wheelchair. Her health dete- years owing to accuracy issues.During its first
elderly.Before branching out on his own,Lim riorated, she developed dementia and passed trials with a hospital,the solution sent nurses
completed his PhD in electronics engineering away within a year. “It made me think: hundreds of notifications daily,with many
at Yonsei University in South Korea. He then Can AI be part of the solution to prevent of them being false alerts. For instance,
joined Microsoft Research Asia as a researcher accidents like this,and I think it can.And alertswere triggeredwhen nurses squatted
of AI-related projects and became a research why isn’t anyone doing it?” or bent over in the room when caring for
assistant professor at the Hong Kong Baptist It took Lim and his team about two patients.Lim and his team had to ensure
University while teaching computer science. years to come up with a viable solution. Some of us may that the AI-powered camera learnt to dis-
Their fall prevention and detection solu- still be walking tinguish nurses from patients.
Lim is among many young Malaysians who tion uses AI-powered cameras placed in in the dark, but
believe that technology will be a key driver of we must not “We were very discouraged by the lack
growth in the future economy,and who have hospital rooms that can read patients’ give up. I believe of progress.We then spent a few months
hunkered down to build a tech-driven business intentions when they try to get up from there will be in 2018 [working] to drop the error by 25%,
regardless of the uncertain economic and po- bed on their own. It then sends a notifi- light at the end but it wasn’t good enough. The hospital
litical climate in Malaysia. cation to the nurses for quick assistance told us that we weren’t ready. We had to
before anything unfortunate can occur. look for other hospitals to conduct tri-
“AI will be an essential part of our future als,” says Lim. But he was persistent. “It
economy. Countries like China and the US “Not all elderly use the bed alarm while wasn’t until the fourth implementation
have produced a lot of AI applications recently. some have dementia.Some hospitals use
Southeast Asia,including Malaysia,is trailing sensors attached to the beds to detect that we started getting positive feedback.
behind.But the trend has been accelerated by changes in their weight. But those sen- of the tunnel. We were excited.”
the pandemic as more businesses adopt tech- sors react more slowly.Our solution gives Lim
nology,” says Lim. From October 2020 to July this year,
nurses about 30 extra seconds to attend SmartPeep — which has a team of 12 now
His SmartPeep safety monitoring system to the elderly and patients,” says Lim. — generated a seven-figure revenue,more
is also riding the country’s fast-changing de- As simple as it may sound,accuracy is than 10 times the amount in its financial
mography.Malaysia’s population is ageing at crucial.Lim and his team had to imitate year ended Sept 30,2018.It has broadened
an increased pace.The World Bank estimated the movements of sitting up from a bed its range of products and supplies these
that more than 7% of Malaysia’s population was and falling on the ground,time and again, to hospitals, home-care centres and re-
aged 65 and above in 2020, meeting the con- to feed those images into the AI software via tirement villages in Malaysia, Singapore and
ventional international definition of an age- camera.“The software needs to absorb as many Australia. Ramsay Sime Darby Healthcare is
ing society. It said the rate will double to 14% images as it can to read one’s movements and one of its notable clients.
and exceed 20% by 2024 and 2056,respectively. intentions accurately.We nearly injured our- Most of SmartPeep’s competitors are from
selves at times.It was only later that we start- the US,China and Australia.The majority of its
The idea of launching the start-up arose ed feeding images obtained from movies, TV clients are also from overseas,but Lim expects
after an incident involving Lim’s grandmoth- series and online videos to the AI software.” the local market to grow significantly in the
er here when he was in Hong Kong. She had The start-up went nowhere in the first two
fallen while taking a stroll around the neigh- CONTINUES ON PAGE 11
bourhood and no one was around to help her
until much later, when a stranger found her
and took her home.

After the incident,she refused to walk,pre-



SR10 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

Achgaenngtse of ABY ELAINE BOEY was unheard of,” the 33-year-old continues.
common misconception surround- “We knew then that TheLorry could be an
Nadhir Ashafiq and Goh Chee Hau ing technology start-ups is that
are using their digital logistics their service replaces physical la- agent of change and uplift the status and in-
platform, TheLorry, to uplift the bour and in doing so, takes away come of lorry drivers in this region. Over the
status and income of lorry drivers jobs.This is the reason the digital years,we have managed to increase their take-
industry is often viewed with con- home pay and transform the perception of their
cern,especially when disruptive tech-enabled job.To us, driving a lorry is an important and
start-ups acquire a critical mass of customers. honourable profession. Lorries are essential-
ly the backbone of the land logistics industry
TheLorry,however,settles this misconcep- and the pandemic has highlighted, time and
tion about job loss.Its business model creates time again, the importance of this sector to
work opportunities for low-skilled workers businesses, households and the economy.”
and enables them to increase their take-home
pay.“This is the value that I wanted to provide TheLorry is a leading digital logistics plat-
when conceiving the business idea behind form with a presence in Malaysia,Indonesia,
TheLorry. I wanted to transform the lori sewa Singapore and Thailand.The company serves
business by making it accessible,transparent, large corporate clients, including multina-
professional and well-paying,” says co-founder tional brand names such as Ikea, Decathlon,
and executive director Nadhir Ashafiq. Unilever,Tesco,Coca-Cola,Shopee and Lazada.
TheLorry has established relationships with
“When my co-founder Goh Chee Hau and independent lorry drivers — whom Nadhir
I launched TheLorry seven years ago,driving calls “driver-partners” — that give it access to
a lorry wasn’t seen as professional work.Driv- a fleet size of about 13,000 lorries.
ers would advertise their services on hand- Better pay, greater professionalism
written signs placed on trees and poles and According to Nadhir, TheLorry’s driver-part-
customers who needed this service would ners earn between RM5,000 and RM7,000 per
look out for these signs, call the drivers and lorry, on average, every month. Those who
negotiate a price.There was no transparency. opt to take on more jobs, displayed on a mo-
High-quality customer service was rare and bile application designed and maintained by
mutual respect,between driver and customer, TheLorry, earn more.

TheLorry is “We have driver-partners who own a few
premised on an lorries and they often earn between RM20,000
inclusive platform. and RM30,000 a month.We also have success
This means that stories, for example, a driver who started ac-
we don’t force our cepting jobs with us with one lorry and has
driver-partners to since acquired four more lorries. He is still
accept requests for working with us.We have another driver who
their services. They managed to earn enough to get married.Prior
are free to decide for to working with us, he couldn’t afford to get
themselves. married,” says Nadhir.

Nadhir At the beginning,he and Goh found it chal-
lenging to convince lorry drivers to partner
SAM FONG/THE EDGE TheLorry. Lorries that transport bulky items
for customers were, for decades, part of a tra-
ditional,old-school industry and most drivers
did not even own smartphones.Nadhir recalls
meeting lorry drivers in mamak stalls and
telling them about a mobile application that
displays lori sewa jobs that they could choose
to accept.

“I remember the beginning of our journey.
It was in October 2014. Goh and I were trying
to find lorry drivers to accept jobs that cus-
tomers were placing on our platform.We were
outsiders to the industry and the drivers did
not trust us.They didn’t believe that a digital
platform could help them to grow their income.
We were rejected many times. Some drivers,
although they agreed to meet us, didn’t even
bother to show up,” says Nadhir.

Most of TheLorry’s driver-partners are from
the B40 (the bottom 40% income classification)
households.This is the most vulnerable group
in Malaysia’s society and they tend to suffer
greatly during emergencies and events — such
as a pandemic — that shock the economy.Even
before the outbreak of the coronavirus,numer-
ous government- and non-government-driven
initiatives had been implemented to improve
their income mobility.

Besides opening up new work opportuni-
ties to its driver-partners, TheLorry provides
them with insurance, vehicle maintenance
services and financing options.Nadhir points
out that the company’s driver-partners are its
first touch point with customers and thus,the
key to the success of its operations.

“We want our driver-partners to work as pro-
fessionals and serve long-standing customers
and earn good income. So, we offer hard and
soft skill training such as customer service.
As a tech platform, we look for ways where
technology can help them to increase their ef-
ficiencies and lower their cost.Since TheLorry
is an established company with critical mass,
we can negotiate with financial institutions to
offer invoice factoring to our driver-partners,

SR11

AUGUST 30
2021

which helps to keep their financial wheels All these will contribute towards the country’s
turning,” adds Nadhir. Invoice factoring ena- digital agenda,” says Nadhir.
bles small business owners to access cash for He believes that developing a highly skilled
their short-term financing needs. talent pool should start with the basics,which
is what is taught in schools and institutions
TheLorry is establishing partnerships with of higher learning.“For example,Swift,a pro-
oil and gas companies to give rebates to its gramming language used byApple,is not taught efsSuexmnepdakasrnitnfsPgoieornenepw
driver-partners when they refuel their vehicles. in universities.As a result, there is an under-
supply of iOS developers who can create apps
“TheLorry is premised on an inclusive plat- for Apple’s products in the country. Learning
form.This means that we don’t force our driv- must be relevant to the real-world experience
er-partners to accept requests for their services. and this is especially true for the tech indus-
They are free to decide for themselves if they try,” says Nadhir.
want to accept requests for the stated fee.We Besides access to a pool of talent,the digital
also programme our algorithms so that new start-up ecosystem in the country would also
driver-partners are given an equal chance to benefit from a more targeted approach to en-
find work.This is to avoid the situation where trepreneurial development. Nadhir finds the
only highly ranked driver-partners are giv- current landscape — made up of numerous
en the opportunity to accept work requests,” government entities — to be inefficient and
says Nadhir. cumbersome.
FROM PAGE 8
During the pandemic, TheLorry has been
actively recruiting more driver-partners. De- “A simplified but focused landscape consist- next three years as businesses increasingly
mand for transport services surged during the ing of a few government entities would enable embrace technology.“We expect that most of
lockdown periods and Nadhir says the company entrepreneurs to focus on building their start- our clients will come from Malaysia and Aus-
tends to over-recruit in order to meet periods ups by minimising the need to seek approval or tralia, moving forward. SmartPeep’s strategy
of overwhelming demand. support from different organisations,” he says. is to provide them with an affordable system
“Finally,I believe that we need to encourage that can address the different problems they
To be accepted as a driver-partner,local lor- successful entrepreneurs to pay it forward by face,” he says.
ry drivers and transporters must be registered mentoring aspiring entrepreneurs. Mentors This year,SmartPeep rolled out AI-powered
with the Companies Commission of Malaysia bring so much to a start-up ecosystem.I have thermo-sensors that can be installed at home
and attend a registration and briefing process. personally benefitted from the advice and guid- to monitor the elderly while protecting their
TheLorry keeps a record of relevant documents ance of successful entrepreneurs in the global privacy. If successfully enhanced in the next
such as their driver-partners’ company registra- logistics industry, so I know how invaluable three to five years, these sensors can detect
tion certificate,lorry grant and driver’s licence. this support is for business owners.” if the patient is having a stroke while sitting
Talent, the key to developing advanced During the first Movement Control Order down, as well as other anomalies, through
technology in Malaysia (MCO) implemented in March 2020,TheLorry their movements.
As with many disruptive start-ups,advanced struggled. At the time, Nadhir and Goh took In the near term, however, Lim wants to
technological solutions play a critical role in a 60% pay cut and shelved their expansion improve the processes and user experience of
TheLorry’s business model. All systems used plans. Nadhir, for the first time, experienced SmartPeep’s applications to help nurses and
by TheLorry are developed and maintained by a tightening in his chest — a condition which caregivers streamline their workload.“Outsid-
the company. Its propriety algorithm is able he attributes to high levels of stress. ers tend to see AI solutions as something fan-
to quote the cost based on the type of vehicle “Without a support group of fellow CEOs to cy. While they are complex, the solutions we
selected and the distance between pickup and talk to every night — these sessions are called design should aim to solve real-life problems.”
drop off points.The price displayed to custom- ‘pillow talk’ — I would have been severely de- He is glad that Smartpeep has not been af-
ers is the final price to be paid, unless the ac- pressed. My peers, mentors and friends were fected by the pandemic,and is looking to raise
tual trip differs from the information specified critical in helping me to reflect and put things new funds for business expansion.Crunchbase,
during the order request. in perspective,” he says. a platform for public and private business in-
Things took a turn for the better when the formation,shows that SmartPeep raised seed
The company has a team of 130 employees MCO was lifted and TheLorry resumed opera- funding from Zeroth.AI, a Hong Kong-based
across four countries,with about 80 based in tions.The focus on serving e-commerce mer- accelerator for early-stage start-ups in AI and
Malaysia.Like many companies in the country, chants — a strategic business decision made machine learning companies in Asia.
finding and keeping highly skilled tech talent during a management retreat in late 2019 — “We are looking to raise a new round of
is a pain point for TheLorry. proved to be fortuitous on the back of a surge funding in the coming months through the
in online shopping during the pandemic. equity crowdfunding platform Mystartr so
“There is a clear need to develop the tech In the middle of 2020,TheLorry’s revenue that more people can get to know us. We are
talent pool in Malaysia [to be ready for the fu- hit an all-time high, and the shelved expan- thinking of raising funds through foreign ven-
ture economy].People with these skills are in sion plans were back on the table again. “We ture capitalists to help us push our solutions
demand now,more than ever.Local tech talent thought the economy would be bad because to overseas markets,” he adds.
can pick and choose where they want to work of Covid-19 but people started buying things As Malaysia celebrates its 64th National
and the biggest companies,the multinational online,including bulky household items such Day amid the pandemic, things are not all
conglomerates,often recruit the best talent in as fridges, sofas and washing machines. The doom and gloom. The pandemic has forced
the country,” says Nadhir. online shopping trend looks like it’s here to many businesses to close, observes Lim, but
stay,so we decided to go ahead and move into at the same time, he says that there are also
“This means that smaller companies,start- a new centre as well as invest in technology success stories, mostly businesses that are
ups like TheLorry, have no choice but to hire and people,” says Nadhir. quick to pivot.
those without experience,such as fresh grad- TheLorry’s new sorting facility in ShahAlam “While many are suffering,I have seen var-
uates, and support them in learning on the is 150,000 sq ft — significantly bigger than its ious businesses pivoting and some booming.
job. Start-ups like us can offer tech talent an previous facility of 25,000 sq ft. A lot of restaurants selling food online are do-
option of working on a mission-critical,large- Lessons learnt during Covid-19 has honed ing pretty good.Some durian sellers recorded
scale project that they, as a young employee, Nadhir’s leadership skills — he had not expe- historical high sales numbers [by tapping the
may not have access to in a large organisation. rienced a severe economic downturn prior to internet], never seen before in their history.
2020. “I think it’s the same for all millennial The internet and technology have opened up
“We are fortunate that some of our tech corporate leaders.This experience has taught new opportunities for them.
talent who joined us as fresh graduates in me how to tighten my belt and the importance “The movement restriction order is expected
our early days are still with us. Once TheLor- of a supportive community. to be lifted once the vaccination rate reaches a
ry started to build a reputation and people got “Looking back,if I had known that business certain threshold.It would allow various sec-
to know of us, it became easier to hire highly was going to turn around so quickly, I would tors,including brick-and-mortar businesses,to
skilled talent. But the truth of the matter is not have let some people go. But how do we come back.I’m quite optimistic of our future,
that start-ups that are starting out will prob- predict the future? It was something that I even though it will certainly take time for the
ably find it hard to hire tech talent who can had to do, at that point, for the business to economy to recover,” he says.
take their company to the next level,” he adds. survive,” he says. Lim believes the pace of technology adop-
“If I were to embark on another venture,it tion and digitalisation will continue to be rapid
To thrive in the digital age,Nadhir believes would be directed at nation-building.I would for the next two years, at least, and business-
the country must focus on building a sizeable like to see the local tech industry move up the es should recognise such a trend to prepare
pool of tech talent. With this in place, global maturity curve and reach a point where the themselves for the future. “Some of us may
tech players will be compelled to establish re- biggest global tech players would come to this still be walking in the dark, but we must not
search and development centres here,which country for their research and development,” give up.I believe there will be light at the end
would eventually bring about more digital in- says Nadhir. of the tunnel.”
novations and a transfer of knowledge. E E

“This environment is a virtuous cycle that
drives economic development and provides
learning opportunities and careers in the high-
tech environment for young talent.These are
also the best conditions for start-ups to thrive.

SR12 AUGUST 30, 2021

SEPT 29
2009

Shopee helps small
businesses build resilience
during Covid-19 pandemic

For first-time sellers and micro Government “Our vision is to make e-commerce accessible for every-
enterprises, selling online might policies one. We constantly enhance our platform to ensure that it
seem daunting at first but with supports even the smallest business. For example, we pro-
government support and Ready Digital vide an integrated payment and logistics solution so sellers
established online platforms, buyers infrastructure can focus on growing their business and building demand
it is easier than it used to be for their products. With our solutions, they can immediate-
Digital ly manage their product inventory, track delivery of their
When government-mandated lockdowns shut doors, Ecosystem products to customers, monitor payments received as well
small business owners and aspiring entrepreneurs as gain insights on the performance of their online store,
turned to selling online to survive. Their journey Business Physical traffic received and customer conversion rate,” says Pang.
was supported by the government and established platforms funding logistic
such as Shopee Malaysia, which launched initiatives that support “Sellers can use our fleet, Shopee Express or third-party
make it cheaper and easier to go digital. logistics partners on our platform to fulfil their deliveries.
Entrepreneur We have a wide range of partners, including Pos Laju, DHL,
“We have consistently carried out programmes and initi- incubation J&T, Ninja Van and CityLink. When customers place an or-
atives to onboard sellers, such as micro, small and medium der, sellers simply print the system-generated airway bill
enterprises (MSMEs) and first-time sellers, to our platform, of e-commerce among local businesses to support and send their goods at the nearest Shopee drop-off point
since Shopee was established in 2015. During the first Move- their long-term continuity. And, these platforms for us or our third-party logistic partners to do the delivery.
ment Control Order (MCO) in 2020, we doubled our efforts must keep innovating to cater for the ever-evolv-
to support the small business community affected by the ing needs of customers. To encourage MSMEs to “We are aware that some people do not have access to
pandemic. We offered financial and operational assistance digitalise their business, the government has been credit facilities.This is why Shopee offers a wide variety
and established strategic collaborations with government actively collaborating with e-commerce and e-pay- of payment methods so that everyone, includ-
entities to further benefit these merchants,” says Terence ments providers.These collaborations are based on ing the unbanked, can participate in e-com-
Pang, chief operating officer, Shopee. a co-funding model, which offers incentives such merce. Customers can make cash payments
as onboarding rebates, service fee rebates, dis- at 7-Eleven and KK Mart, or upon delivery of
An example of Shopee’s initiatives is a RM15 million seller counts, trainings and others,” says Aiza. their purchases. Cash payments complement
support package launched in April 2020 to drive digitalisa- the other methods such as credit and debit
tion of traditional businesses and assist companies affected To encourage and support small cards, online banking, ATM transfers and the
by the pandemic. businesses on its platform, Shopee ShopeePay mobile wallet. By enabling more
has lowered the barrier to entry buyers to use our platform, sellers have more
Business owners looking to sell online can attend free on- (to its digital marketplace) and opportunities to sell and build their customer
line training — conducted in English, Bahasa Malaysia and provided access to an established base,” adds Pang.
Chinese — at Shopee University. Topics include how to start ecosystem of systems, tools and
an online store and transact with customers, e-commerce real-world services. “To survive the pandemic and
marketing and how to manage operations digitally. In 2020, compete effectively in a post-
this learning platform conducted 480 classes, which was at- pandemic world, sellers must
tended by 75,000 participants. ”keep learning and quickly
adapt to new trends.
“Shopee also forged meaningful partnerships with vari- - Datuk Liew Bin
ous ministries, government agencies, associations and state Vice-president of the Malaysian
governments to help digitalise the local business community, Retail Chain Association
especially micro enterprises and petty traders. These sellers
received assistance to start their digitalisation journey,” says Digital banking the missing piece in a robust e-commerce ecosystem
Pang (see “Helping vulnerable groups to sell online”).
Online shopping has outpaced traditional retail as an global celebrities. As Pang points out, more traffic to
“When these sellers decided to open a store on Shopee, increasing number of people turn to e-commerce for their the e-commerce platform translates into a bigger buyer
they were given the opportunity to participate in campaigns, purchases. The Usage of ICT and E-commerce by Establish- market for Shopee’s sellers.
discount promotions, cashback vouchers and advertising ments 2020 (ICTEC 2020) report published by Department
credits. These benefits are designed to boost their sales and of Statistics Malaysia on July 6, 2021, found that Malay- “Our sellers usually see a spike in sales during our
greater attention was paid to sellers that faced severe cash sia’s income from e-commerce transactions grew 32.7% to double-digit campaign days,” says Pang. An example
flow constraints because of the pandemic,” adds Pang. hit RM896.4 billion in 2020 from RM675.4 billion in 2019. is Yana Azmi Tan, founder of a popular online shop on
Shopee called Got Kimchi?
Shopee’s initiatives generated total revenue of RM1 billion The best way to connect to these online consumers
for about 200,000 MSMEs in 2020. in Southeast Asia is via promotions and campaigns, says “Got Kimchi? usually receives about 100 orders a day.
a survey by Reprise, conducted in collaboration with If we participate in Shopee’s double-digit monthly sales
Selling online successfully Google, which interviewed 13,000 shoppers in the first campaigns and offer free shipping to customers, our
half of 2021. Up to 61% of respondents said they wait for sales can increase up to 10 times. For example, during
“Selling online is a totally different ball game. It requires re- big sales days to shop online while only 39% claim to be the 6.6 Awesome Sale campaign, we received a total of
sources. Businesses need to set up a new team or department “anytime shoppers”. 1,100 orders on June 6,” says Yana.
to handle online channels. This requires long-term planning
and it is probably not easy to maintain a competent digital Shopee Malaysia’s double-digit sales campaigns are Farah Hanim, who runs Intan Kek Lapis, also saw
team.There are also business owners who do not like to change extremely popular among online consumers in the coun- sales surging during Shopee’s double-digit campaigns.
their traditional approach in doing business,” says Datuk Liew try. During its leading sales campaign, the 11.11 Big Sale, “We received 67 orders in a day during the 6.6 Awesome
Bin, vice-president of the Malaysian Retail Chain Association. held on Nov 11, 2020, the top micro, small and medi- Sale campaign. Looking back, it was an extremely tiring
um enterprises (MSMEs) generated average revenue of day but also very exciting,” she says.
Liew adds that e-commerce platforms can remove the RM55,000 within 24 hours.
barriers that MSMEs face in selling online. “Business owners “The biggest challenge for local MSMEs is fierce
require little technical skills to sell on Shopee as compared “Shopee is well-known for its double-digit campaigns. competition online. As such, retailers need to learn ways
to selling on social media platforms. Furthermore, Shopee is We are currently running our flagship 9.9 Super Shop- to leverage on platforms and their features to reap the
investing a lot of money to bring millions of users to its plat- ping Day and this will kick-start our year-end shopping benefits from their marketing campaigns,” says Datuk
form.Which means that sellers on its platform reach millions season. During our campaigns, we provide free shipping Liew Bin, vice-president of the Malaysian Retail Chain
of buyers in a very short period of time. It also makes financial nationwide and vouchers for buyers. We engage our us- Association. “As competition online becomes stiffer, lo-
sense to sell on e-commerce platforms. It doesn’t cost much ers in a fun and interactive way. For example, we have cal MSMEs, of course, would require bigger war chests
to set up an online store and the seller gets to bypass the mid- games on the Shopee app where users can win vouchers to thrive. Not all retailers have the means to do this.”
dlemen and sell directly to the consumer. From a financial or Shopee coins. And, for entertainment, users can visit
perspective, this pays off in the long run.” Shopee Live, which features our seller’s livestreams,” says “Looking at the direction Shopee is taking — giving
Terence Pang, chief operating officer, Shopee. local MSMEs that added boost with technology — I think
Aiza Azreen, chief digital business officer of Malaysia the Digital Banking License Shopee’s parent company Sea
Digital Economy Corporation (MDEC), says online shop- Shopee’s livestreaming tool allows buyers to comment, Group is contending for could be just the missing piece here.
ping platforms will continue to play a major role in the local answer polls, receive vouchers, watch a livestream and
economy as consumers are expected to keep buying from shop within one screen. To reach new users and build “It can provide innovative digital financing solutions to
these channels even after the pandemic. brand awareness, Shopee collaborates with local and local sellers who are showing growth potential and have
the ambition to scale up but do not have the financial
“Online platforms should keep encouraging the adoption means to do so,” says Liew.

SR13AUGUST 30, 2021

SEPT 29
2009

Besides receiving training via Shopee University, new sell- Malaysian stranded in Saudi Arabia due to Covid-19 restric- Helping vulnerable groups
ers can benefit from assistance packages such as the RM15 tions, she was unable to earn an income. During this time, to sell online
million Shopee Seller Support Package that was implemented she attended Shopee University’s classes despite the time
last year, followed by the Shopee Marketplace Growth Pack- difference and learnt to sell online. She eventually found a Policymakers around the world are looking at e-com-
age. The latter provides Shopee sellers with up to RM1,600 niche selling Islamic books, baby products and children’s merce to boost income levels among vulnerable pop-
in store vouchers and advertising credits to support their toys. Her online venture has created jobs and she manages ulation groups. In Malaysia, government authorities
growth on this platform. her online store, office and a warehouse in Kajang remotely. are working with e-commerce platforms to reach
these groups and help them make the transition
“We are currently co-funding the Go-eCommerce cam- Greater cross-border opportunities from offline to online.
paign Ringgit-to-Ringgit in partnership with MoF and MDEC and competition
to spur digitalisation of MSMEs. Local sellers are given RM3,000 “There is growing awareness in leveraging e-com-
worth of benefits to kick-start sales through this campaign. Shopee’s sellers are given the technological system and sup- merce to narrow the digital divide. Local sellers
port needed to sell to online customers across the region such as those in the B40 income category, wom-
“In order to provide further mileage in terms of sales for easily. This is via the Shopee International Platform (SIP), en entrepreneurs, unregistered businesses, rural
local sellers and spur domestic consumption, we are also which uses advance technologies to provide end-to-end communities and petty traders are encouraged to
collaborating with MDEC for the second consecutive year to cross-border services such as logistics, customer service, embrace e-commerce.We want to develop digitally
co-fund Shop Malaysia Online, which provides Malaysians payment solutions and campaigns. skilled communities by developing digital leaders
with discount vouchers, cashbacks and free shipping subsi- and creators in these vulnerable groups,” says Aiza
dies when they shop with sellers bearing the ‘ShopMalaysia’ “Sellers that want to use SIP are not required to pay addi- Azreen, chief digital business officer of Malaysia
tag,” says Pang. tional fees. To fulfil cross-border sales, they just need to ar- Digital Economy Corporation (MDEC).
range for their product to be delivered to the Shopee Malaysia
“Moreover, to keep the cost of doing business low, we do Warehouse.We will oversee the delivery and ensure that their “MDEC is committed to upskilling vulnerable
not impose commission fees on newcomers as they are still items reach their buyers overseas,” says Pang. groups in our country. These are groups that may
familiarising themselves with selling online. Their first 99 face greater challenges in adopting digital technol-
orders on Shopee are free of charge,” he adds. Shopee has helped numerous local MSMEs to cross borders ogies.To create shared prosperity for all in Malaysia,
and build foreign demand for their products. This includes it is imperative that digitalisation is accomplished
Shopee also offers marketing support to help sellers reach well-known local brands such as Fipper, Zoe Arissa, Elian- in an inclusive manner,” she adds.
and connect with its extensive user (buyer) base. “The Shop- ware, Kluang Coffee and Heus, all of which have successful-
ee app includes livestreams that can be used by sellers at ly built a market for their products in Singapore. Pang adds MDEC launched the #SayaDigital movement
any time. There is also an option of working with dedicated that Mydin, a local halal hypermarket, has started using SIP in April, to increase digital literacy among the so-
Shopee teams and participating in our marketing campaigns recently to export its products for the first time. cio-economically vulnerable groups, including B40
and shopping festivals such as our popular double-digit households, senior citizens and youths.
campaigns. If they do participate, they will gain exposure to MDEC and the Malaysia External Trade Development
our considerable customer base via our banners, feeds, push Corporation (Matrade) have also been working with plat- According to Aiza, about 10,000 participants
notifications, shocking sales campaign and others,” says Pang forms such as Shopee to support MSMEs in selling regionally. are expected to participate in the 12 digital literacy
(see “Online promotions the best way to engage shoppers”). “We are collaborating with online platforms and e-payment courses planned for this year. The #SayaDigital pro-
solution providers to co-fund initiatives such as onboarding gramme will also train 100 young ambassadors, who
Also, sellers can leverage Shopee’s social media presence rebates, service fee rebates, discounts and training to support will eventually provide basic digital skills training to
on Facebook, Twitter and Instagram and participate in the more MSMEs in transitioning to e-commerce and e-com- the underserved communities.
Shopee Ambassador Programme. Through this affiliate mar- merce export. Our collaboration is part of the Belanjawan
keting channel, sellers can tap Shopee’s network of key opin- 2021 e-commerce Initiatives by the government,” says Aiza. “The #SayaDigital movement looks to enable the
ion leaders (KOL) to promote their products and online store. rakyat to seize opportunities in the digital economy.
The Belanjawan 2021 Initiatives, which comprises the This way, we can advance together. Participants of
“The local digital economy cannot discriminate if it is to Belanjawan 2021 Go-eCommerce Onboarding and Shop Ma- #SayaDigital will learn digital communication, in-
develop. We want Shopee’s platform to be user-friendly and laysia Online campaigns, involves 32 e-commerce and e-pay- ternet banking and e-wallet and digital services,”
accessible to all sellers. A Shopee store can be set up in 30 ment solution providers and runs from July 1 to Dec 31, 2021. says Aiza.
seconds and the process of listing a product is as simple as
posting on Instagram. Everything can be done on a mobile “To survive the pandemic and compete effectively in a Shopee Malaysia, an established e-commerce
phone. Being mobile-friendly was a deliberate decision on post-pandemic world, sellers must keep learning and quickly platform, is among the private sector players that
our part because up to 90% of users in this region are using a adapt to new trends. If their products are not selling, they must are playing an active role in helping vulnerable
mobile phone, not a desktop, to access the Internet,” says Pang. be able to switch quickly to other products,” says MRCA’s Liew. communities boost their income by selling online.

Finding success as an online seller, especially for a small “For now, businesses need to be determined to survive “Going digital requires skills and financial re-
business, is not easy as competition is fierce.There are also mis- the pandemic. Tough times never last but tough people do. sources.These are the biggest hindrances facing local
conceptions that can prevent sellers from growing their sales. Just keep learning. In this era, knowledge is the key to keep micro, small and medium enterprises (MSMEs) and
a business going,” he adds. home-based sellers.We have initiatives that address
“One misconception is that the job is done once you have these challenges. Furthermore, Shopee has constant-
set up an online store. The truth is that growing sales on an Moving forward, Shopee plans to introduce more fea- ly innovated and looks to ensure that our platform
online store requires as much effort as a physical store. Mar- tures and services on its platform and improve the synergy is accessible to everyone,” says Terence Pang, chief
keting is needed before online customers notice and buy between offline and online shopping. operating officer, Shopee.
from you. All this is taught at Shopee University,” says Pang.
“As consumer demand evolves and technology becomes Shopee is also working with government au-
“Sellers will learn how to increase the visibility of their stores more important in people’s lives, we must innovate and en- thorities to help small business owners go digital.
by using attractive pictures of their products and by providing sure that our platform is able to serve the needs of businesses Initiatives that have been carried out recently include
product names and descriptions that are relevant to custom- and consumers in the long term,” says Pang. Kempen Beli Barangan Malaysia with the Ministry of
ers. We also teach them how to use features such as Shopee DomesticTrade and Consumer Affairs, the PENJANA
advertising, discount vouchers and free shipping. However, Shopee is also looking to further assist bricks-and-mortar MSME E-commerce Campaign and PENJANA Shop
once small businesses and first-time sellers start selling online, businesses from its online platform. “Online and offline are Malaysia Online Initiative with MDEC, Jana Niaga
they usually learn quickly and quickly improve,” he observes. no longer seen as distinct business channels and many tradi- with Majlis Amanah Rakyat (MARA), eFAMAPLACE
tional businesses are taking an integrated online-and-offline with the Federal Agriculture Marketing Authority
Besides Shopee University, sellers can access resources from approach in the new normal,” says Pang. (FAMA), and FELDA E-Mall with the Federal Land
Shopee Seller Education Hub. Meanwhile, sellers with bigger Development Authority (FELDA).
operations can chose to automate and integrate their systems “We have already started the groundwork to make digi-
with Shopee’s various trade channels. Shopee can also support tal payments more seamless, convenient and rewarding by Furthermore, the online platform has collabo-
them in connecting to third parties such as e-commerce ena- launching our own mobile wallet known as ShopeePay. This rations with local authorities to assist local traders
blers and service providers to further digitise their operations. provides customers with a smoother checkout, as well as a in their respective states. These collaborations in-
smoother refund process. clude Johor e-Marketplace, Penang e-Mall, Selangor
“We have many success stories of sellers that have bene- e-Bazar Raya and S.M.A.R.T Niaga @ Perak.
fitted from our platform and training programmes. Consider “To serve businesses with a physical store, we have an
Zeeda Aziz, who lost one of her limbs to cancer. She started online-to-offline (O2O) feature that uses location-based During Chinese NewYear and Hari Raya this
selling ikan bilis and dried seafood products on Shopee in services. This is used in the ‘Deals Near Me’ in-app portal on year, Shopee helped petty traders in Petaling
July last year. She had no experience or knowledge Street and merchants in LorongTuanku Abdul
of online selling. Business was slow in the first the Shopee mobile app. Here, we engage
few months, so Zeeda spent her time learning with our users to generate footfall Rahman and Bandar Sri Permaisuri, Cheras,
about Shopee’s features and attended almost and cash flow at bricks-and-mor- to sell their wares on the Shopee platform.
all the classes provided by Shopee University. tar retailers such as F&B play-
She has since grown her revenue from a few ers, convenience stores and “To encourage MSMEs to
hundred ringgit a month to average four-fig- pharmacies. This way, offline digitalise their business,
ure sales daily,” says Pang. (bricks-and-mortar) players the government has been
can participate in the growth
Anis Yohana Khalid’s online store is an- and benefits of e-commerce,” actively collaborating
other remarkable Shopee success story. A adds Pang. with e-commerce

“Online and offline are no ”and e-payments
providers.
longer seen as distinct business
channels and many traditional - Aiza Azreen
businesses are taking an Chief digital business officer
integrated online-and-offline of Malaysia Digital Economy

”approach in the new normal. Corporation

- Terence Pang
Chief operating officer, Shopee

SR14 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

More than half of the Tehcoenfoutmuyreis green
world’s population
today reside in cities,
and the trend is ex-
pected to continue.
By 2050, the World
Bank estimates that seven out of
10 people in the world will live in Sustainability is picking up speed as a major consideration in economic
cities.Over the last 50 years,Malaysia’s urban pop- development initiatives and we see a growing number of green advocates
ulation has increased, from 26.8% in 1970 to 77% in Malaysia championing urban sustainability. A focus is on the role of green
in 2020. By 2050, 88% of the country’s population technology and the green economy in creating sustainable and liveable cities.
is expected to reside in urban areas.
The speed and scale of urbanisation, globally
and in Malaysia,mean that cities need to cater to
the demands of the growing urban population, from
their housing needs to amenities and services such as
energy,water,transport and recreational areas.Pressure
for land expansion in cities will lead to more green ar- needs of urban living,which include features such as
eas,including forested areas and forest reserves,being public transport, affordable housing, complete neigh-
developed,resulting in a widening rural-urban income bourhoods, walkable streets and vibrant public open
gap and worsening pollution. spaces,” says Noraida, president of the Malaysian In-
An Organisation for Economic Co-operation and stitute of Planners.
Development (OECD) report titled Cities in the World: A In the last decade or so, green
New Perspective on Urbanisation published last year not- technology has often been men-
ed that many city dwellers are exposed to high levels tioned in the same breath as urban
of air pollution, resulting in a considerable number sustainability — in Malaysia,from
of premature deaths each year and higher Covid-19 2009, with the setting-up of the
mortality rates. Ministry of Energy,Green Technol- Sustainability really
The latest Intergovernmental Panel on Climate ogy and Water.That same year,the
Change (IPCC) report, released earlier this month, National Green Technology Poli- means balancing the
points out that for cities,some aspects of climate change cy was launched. The goal was for conflicting needs of
may be amplified, including heat (since urban areas green technology to be a driver to economic and
are usually warmer than their surroundings),flooding accelerate the national economyand physical development
from heavy precipitation events and rising sea levels promote sustainable development.
in coastal cities. As highlighted in the OECD report, Malaysian GreenTechnology and
many cities are already highly exposed to floods and Climate Change Centre (MGTC) cit- with social liveability
storm surges,with one in five city residents living in ies and industry division director and ensuring
an area that would be submerged in a big flood and Norhasliza says the application of environmental health
one in seven exposed to storm surges. green technology in the form of and conservation.
products, equipment or systems
In the coming decades, a key challenge for cities
will be how to reduce air pollution, limit exposure to can help create sustainable cities.
natural hazards and transition to a low-carbon econ- “It can help reduce greenhouse gas Noraida

omy. The UN Sustainable Development Goal 11 de- emissions in cities to mitigate cli-
fines sustainable cities as those that are dedicated to mate change. For example, using
achieving green sustainability, social sustainability renewable energy sources such as purchase of fertilisers and provides
and economic sustainability. solar panels can generate electrici- environmentally friendly soil mix-
Malaysia has its army of green advocates, people ty to power up buildings.It reduces tures,” says Norhasliza.
such as Datin TPr Noraida Saludin and Norhasliza the burden on the conventional utility grid, produces
Mohd Mokhtar. less emissions and helps to save on energy bills.Ener- Economic opportunities from green tech
“Sustainability really means balancing the con- gy-efficient technologies such as LED lighting in homes, Norhasliza believes there are many green technology
flicting needs of economic and physical development offices, shops and street lights help reduce electricity opportunities for Malaysia. Hydrogen technology, for
with social liveability and ensuring environmental consumption and lower carbon emissions.” instance,can be used for power generation or fuelling
health and conservation. Urban sustainability also She adds that the Low Carbon Cities 2030 Challenge vehicles.“Green hydrogen has the potential to be a ze-
means developing cities that (LCC2030 Challenge), implemented ro-carbon fuel that can tremendously reduce green-
are liveable, ensuring the basic by MGTC,has been an important fac- house gas emissions in Malaysia,” she says.
tor in driving the use of green tech- The MGTC, she adds, has taken initial steps with
nologies in Malaysian cities. “Cities key players from academia and industry to build the
that participate in the programme foundation of the green hydrogen economy in Malay-
Using renewable have to reduce their CO₂ emissions sia. “With the global hydrogen economy expected to
by 45% in 2030 from their baseline reach RM10 trillion by 2050, Malaysia stands to reap
energy sources year.They have to reduce emissions many economic benefits by tapping into this sector.”
reduces the burden on
from the energy,mobility,waste and Although much of the focus of green technology
water sectors,thus the usage of green is on the energy sector, from tapping into renewable
the conventional technologies is vital in achieving sources of energy like solar to reducing energy use and
utility grid, produces their target.” promoting energy efficiency,innovations in other areas
One of the initiative’s success sto- are picking up steam.At Universiti Teknologi Petronas’
less emissions and ries is the Shah Alam City Council (UTP) Institute of Self-Sustainable Building for Smart
helps to save on (MBSA).“MBSA started participating Living (ISB),researchers have several projects at vari-
energy bills. in the LCC2030 Challenge in 2015. ous technology readiness levels — covering advanced
As part of its initiatives in reducing materials,water and energy security.
Norhasliza carbon emissions and becoming a
One of the technologies developed, an integrated
low carbon city, MBSA undertook a wastewater treatment unit that integrates all processes
public funded initiative to replace of aerobic degradation of organics, biomass and sedi-
high-pressure sodium vapour street mentation in a single reactor,is already being commer-
lamps with more efficient LED light- cialised.Significantly smaller in footprint compared to
ing,” says Norhasliza. a conventional wastewater treatment plant,the tech-
“MBSA has also installed electric vehicle charging nology,dubbed i-SGBR (Integrated Suspended Growth
stations at 10 locations around Shah Alam to spur the Bioreactor System) is already attracting interest from
adoption of low carbon mobility. Other initiatives in- those in the business of wastewater treatment,disclos-
clude the adoption of the Smart Selangor Bus, which es ISB director Dr Noor Amila Wan Abdullah Zawawi.
provides free bus services to encourage public trans- Another invention that is in the pipeline is a so-
port, and garden waste composting that reduces the called green solvent,extracted from fruits and plants.

SR15

AUGUST 30
2021

maybe overly ambitious,but reducing carbon emissions Malaysia is scaling up its circular economy efforts to
must be the core objective in our urban development,” reduce waste and mitigate pressures on finite resourc-
she says.There has to be a willingness on the part of es, it may well be worth considering past knowledge
industry players to really go into green technology and and wisdom in the playbook for future development.
green growth. “Many are still unwilling to integrate Hamdan points out that many of the issues related
green technology into projects such as housing and to climate change is linked to the Industrial Revolu-
commercial, citing high development costs.” tion. “And now,we need to either innovate, reverse or
As green technology affects all aspects of life, adapt to the changing world.In this respect,there may
Norhasliza believes its success- be clues in the past — we may have to review how we
ful deployment depends on in- managed waste well and revive systems that support
tensive and continuous collabo- sustainability better.
ration between all stakeholders. “A quick example of a small movement,which may
“Implementing green technology create traction,is the use and return of glass bottles in
effectively requires awareness, the delivery of milk and soft drinks — a system that we
The cost of communication and teamwork used for decades and which only fizzled out from the
implementing at all levels of society,” she says. 1980s. Many small movements like this in the supply
“First of all, there needs to be chain can make a big difference to the environment.
technologies is still high, cooperation at all levels of gov- “However,political will is always required,and this
which makes the ernment to realise the maximum
potential of green technology in is complex due to the relationships governments have
bringing benefits to the nation with big industries, which have great influence over
technology unattractive and society. At the federal level, urban policy.”
to the end-user.
He adds that as the country looks towards green
there needs to be dynamic in- technology and the green economy as a whole,it is im-
Noor Amila ter-ministerial cooperation. portant to rethink existing economic models. “There

“Policies and funding from is that larger issue of our economic system — share-
the federal government help to holder economy versus stakeholder economy, profit
mobilise awareness and green versus purpose.”
Noor Amila, who is an associate investments, and they need to Developing sustainable cities and managing a city
professor at UTP’s Faculty of Civil be effectively communicated to around the well-being of its citizens requires a com-
Engineering, says the green solvent replaces conven- state governments and local governments for effective ponent of trust and empowerment.“This must include
tional pre-treatment techniques in the production of implementation. All of this is underpinned by active everyone,also communities that may be marginalised
paper,which use diluted sulphuric acid or sulphur di- involvement and support from the private sector,which for some reason. The fundamental ways in which a
oxide and are energy intensive and laborious. can help drive investments and innovation. city can demonstrate trust in its citizens are by giving
“Solvents are used to soften the pulp.And by using “Individuals in society also have a role to play on them a voice,and giving them the power to decide on
this green solvent, we’ve found that it can be applied the demand side by being willing to pay for and use some of the issues they face,” says Hamdan, adding
to oil palm fronds,thus making what would otherwise green technologies such as buying electric cars and that this is why ThinkCity has such a strong commu-
be a waste product into paper,” she says, adding that energy-efficient appliances,which in the long run will nity-focused approach.
tests are currently underway at a paper mill. help drive down the prices of green technologies and There has never been an era more in need of col-
One innovation that has been commercialised is speed up their adoption.” laboration,and it is a crucial aspect of nation-building
the mini portable solar still,used to produce drinking She points out that here,capacity building is critical. that should not be overlooked.
water from seawater or brackish water through the “Fighting climate change and adopting green tech- “The pandemic has heightened the need for collec-
process of desalination.The evaporation and conden- nology is a shared responsibility of everyone and a tive pooling of resources and action.We will be seeing
sation processes are the main concept behind this lack of knowledge can seriously undermine any ef- more collective action and rallying of support for each
technology,and round-the-clock water supply is guar- fort. For instance, policies on climate action and the other,and in Malaysia,there have been a lot of hopeful
anteed with the use of the solar electricity generating uptake of green technology are bound to fail without examples with the recent Covid-related food aid for
system.“It has not gained ground in Malaysia because public support and awareness. A lack of experts and disadvantaged communities,” Hamdan says.
we have ample supply of clean water. But in the Phil- skilled workers in the green sector will also prohibit “Malaysians are beginning to look out for each other
ippines and Indonesia,the technology is getting some its growth,” she adds. more,compared with the last few decades.I hope that
attention,” she says. it will become a norm.It is with this kind of spirit that
Although researchers are constantly looking at Technology alone is not enough we will be able to fight the major challenges facing all
how technology can be used to mitigate climate, en- Hamdan Abdul Majeed, managing director of Think of us — climate change, inequality, social exclusivity
ergy and water security or waste issues,to name a few, City, a social purpose organisation with the mission and so on.”
Noor Amila says one hurdle that is holding back pro- of making cities more people-friendly, resilient and The transition to a green economy presents tre-
gress is cost.“The cost of implementing technologies liveable, says even though technology can help make mendous economic opportunities, and it is through
is still high,which makes the technology unattractive cities sustainable, it is not enough by itself. coordinated and focused efforts that the coun-
to the end-user.There is also a lack of funding sources He cites the example of Barcelona,which recently try can make that leap, he adds. “We talk about
to commercialise these new technologies,” she adds. launched an app that helps citizens choose shaded pe- building back better but in a post-Covid world, it
The government has come up with the Green Tech- destrian paths across the city,from departure to arrival, is also about realising that there is an opportuni-
nology Financing Scheme 2.0,which allows companies so they can experience the city in a climate-comfortable ty to build back greener.” — By Sreerema Banoo E
to apply for financing from banks,with the government way.“It’s a great idea,but it couldn’t
guaranteeing 60% of the amount and providing a 2% work if the city didn’t already have
rebate on the interest or profit rate charged. enough green infrastructure, a
For green technology adopters, there are govern- highly developed network of street
ment incentives such as the Green Investment Tax trees and high-quality green spaces.
Allowance,which is applicable to companies that use In Malaysia,we have yet to build a A lot of issues related
green technology services listed in MGTC’s MyHIJAU similar high-quality urban green to climate change is
directory.Service providers in the directory also quali- infrastructure.” linked to the
fy for the Green Income Tax Exemption.Despite these
An article in The Conversation a
financing schemes,they are not able to match the in- few years ago posited that a green Industrial Revolution,
vestment costs required to scale up green technology technology future is a “flawed vi- and now we need to
projects, says Noraida. sion of sustainability”, and that
Norhasliza believes that in time,as understanding of technology alone cannot solve the either innovate,
green technology grows,banks will become increasingly world’s most pressing environmen- reverse or adapt to
active in the field by providing financing for renewable tal problems. For instance, even the changing world.
energy projects.In its 2020 annual report,MGTC noted more fundamental than greening
that Malaysian small and medium enterprises (SMEs) the supply of energy is reducing
have the opportunity to be a part of this shift towards demand. Hamdan

green technology,with MGTC playing the role of ena- Noraida concurs with this point,
bler in capacity building,creating green products and adding that changing one’s lifestyle
services,providing financial incentives and promoting by reducing energy and water de-
local green SMEs internationally. mand,fully adopting and practising
recycling (for waste and water),and
Awareness, communication and teamwork shifting one’s mode of transport from private vehicles
Although Malaysia has green technology policies in to public transport as well as opting for green mobility
place,Noraida laments that implementation is some- options such as cycling and walking will essentially
what lagging. “We must embrace green technologies reduce carbon emissions.
as part of sustainable development and make serious Equally important is addressing the costs of our
concerted efforts in reducing carbon emissions from disposable society, where people discard things and
our cities. Going carbon neutral would be ideal, and buy new ones, rather than repairing them.Although

SR16 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

Mohd Izzairi Yamin never saw himself For us as a tech-
starting a logistics company. But six
years ago, he did, when he founded
ZeptoExpress. Like many start-ups, the
early days were tough.But Izzairi,in his
thirties, is among many young Malay-
sians today who have not allowed obstacles to deter driven company,
him,forging ahead in a rapidly changing world driven we need the data
by technology advancements.
The computer science graduate, who spent many not to tell people
years as a software developer in a multinational firm we are sexy in
before eventually setting up his own software house, terms of tech but
did not think that he would delve into the world of to help us improve
logistics.It was all because of a battery,he says,by way our manpower and
of explaining how he made that fateful foray into the delivery routes,
delivery business six years ago. and forecast for
“It was a Friday evening and I ran out of batteries future deliveries.
Izzairi
for a drone I had.I called up a retail outlet located at a
mall in Petaling Jaya and asked if the batteries could
be delivered quickly and was told that if I made the
purchase online,it would be delivered the next day.So
I paid the RM400 for the battery and the RM38 for de-
livery,” he recalls.No sooner had he made the payment
and attempted to book a delivery for the following day,
the delivery company informed him that the earliest
he could receive the item was Monday.“I was annoyed
and frustrated. It struck me then that why do courier
companies control the delivery time?”
Brainstorming with a few friends, he channelled
lMasatkminiglethcoaut nthisfrustrationintocreatingadeliverystart-up.Izzairi,
A young start-up competing against established names
in the logistics field can sometimes be likened to the story of
David versus Goliath, but ZeptoExpress founder Mohd Izzairi
Yamin reckons that it may well be playing with the big boys
in three years

who developed the website and mobile app that prom- tions to ramp up and speed up the entire process from total weight that each driver is carrying. Each time
ised a three-hour on-demand delivery service,says the onboarding of a customer to performing transactions. the bag is opened this sends a signal to the system
company garnered some attention from the media.But indicating that the bag is opened at that particular
that endeavour was short-lived because of issues with “As ZeptoExpress is a tech logistics company we see location and the number of items that have been re-
the other founders,and so the company was dissolved. that we can play a role in the financial inclusion sector moved from the bag.
by providing services such as face to face verifications
Undaunted and convinced he was on to something, (knowyour customer) and cash (foreign exchange notes) “In delivery it’s always important to know how
Izzairi then decided to strike out on his own – believ- or cards (credit and debit cards) delivery.” you’re utilising each rider or driver, and we need pre-
ing that the last mile delivery is one of the most im- Tech to analyse, forecast and improve cision and analytics in order to do forecasting and to
portant steps in a parcel’s journey. It’s the moment The company’s express delivery services are available improve the delivery efficiency. Without the bags it
in the supply chain that matters most to customers in the Klang Valley, Johor and Penang. ZeptoExpress was difficult for us to gauge what’s the efficiency of
especially given that the last mile delivery person is counts small and medium enterprises and corpora- each driver or rider but when we first tested the bag,
often the only face a customer will see in the entire tions as its clients including Digi,Walt Disney,DKSH we found that one rider could settle 30 to 40 deliveries
purchase process,he says.In an industry already pop- Holdings, Holabebe, to name a few. One of its largest within four hours. From there we made some tweaks
ulated by big name delivery and logistics players, his clients is PosLaju — ZeptoExpress delivers 25,000 par- — whenever the driver completes the deliveries he will
goal with the start-up was to disrupt traditional de- cels a day for the national courier company in Ipoh, then need to go to the hub and collect more parcels.
livery services by guaranteeing a maximum delivery Kuantan, Pagoh and Penang.
time of three hours. “We also learnt which are the highest density de-
It has some 4,900 approved drivers on its database, livery areas, and with all these data it is easier to do
He named the new venture, ZeptoExpress to reit- although only about 4% to 5% of them are active daily. forecasting, predictions and also analytics…For us as
erate the service’s unique selling proposition. A unit Though we undertake consistent recruitment, at the a tech-driven company, we need the data not to tell
prefix in the metric system denoting a factor of 10-21 same time we also want a balance to ensure that the people that we are sexy in terms of tech but to help
a zeptosecond is a trillionth of a billionth of a second. jobs we bring in are enough for the drivers to sustain us improve our manpower and delivery routes, and
a living, says Izzairi. forecast for future deliveries,” he adds.
Established in 2016, the crowdsourced on-demand
delivery platform allows customers to make delivery Over the years,the company has seen its revenues He believes that although ZeptoExpress has the edge
bookings at their convenience. From the first service, and profits steadily increase,from RM700,000 revenue in terms of delivery efficiency and technology there are
ZeptoBike,the company has since expanded its offer- in the first year to RM2.3 million in 2020.The compa- more players entering the market. In the same way,
ings to include the transport of larger, bulkier items ny also started turning a profit from the second year. he never viewed ZeptoExpress being in a David versus
via ZeptoCar,ZeptoTruck,ZeptoAir and most recently Goliath scenario with the more established logistics
a carbon-friendly option, ZeptoRun for pick-ups and One of the company’s selling points is that custom- brands, Izzairi also feels that market players can lev-
deliveries. In addition the company also introduced ers can perform live tracking on their delivery orders erage on each other.
ZeptoStore, its warehousing and fulfilment solution to see it in action.“We also monitor and analyse how
for clients in the fast-moving consumer goods (FMCG) many deliveries a single driver makes,” says Izzairi.De- “Based on the number of parcels that are delivered
business,which offers storage, packing and delivery. livery bags are equipped with Internet of Things (IoT) daily (as reported by Malaysian Communications and
sensors, he elaborates. “Each item has a barcode and Multimedia Commission),no one is holding more than
Izzairi sees himself as a problem solver,and that has that is scanned by the driver using his phone before 25% of the total market size. So there is no monopoly,
attributed to ZeptoExpress’ various product offerings. it’s placed into the bag.The bag,which has IoT sensors which means that the pie is shareable, and with the
With one of its more recent products,ZeptoFinance,for also weighs the item, and tells the system what’s the number of parcels doubling or even tripling every
example,he believes there’s a need for financial institu-
CONTINUES ON PAGE 19



SR18 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

Remember the mobile phone game adopting them for such purposes, says Kay. in a classroom with a bunch of slides,which is
Pokémon Go? It was downloaded Technavio,a London-based market research less helpful. Learning by doing is usually five
more than 500 million times a year times more effective than all other learning
at its peak,sending people roaming company,expects theAR andVR market to grow methods,” he notes.
cities worldwide in search of virtual by US$125.19 billion (RM530.23 billion) from
pets and friends.It was the first time 2020 to 2024 at a compound annual growth VR is beneficial in learning and training,
that augmented reality (AR) took the world by rate of more than 35%.In 2020,the market ex- especially for technical systems that come
storm.Together with virtual reality (VR),which panded 26.35%,with Asia-Pacific contributing with safety procedures,as one simple mistake
creates simulated experiences completely 37% of the growth. could cost money and even lives. The cost to
different from the real world,it is expected to recreate these highly controlled and high-risk
form an integral part of our future economy. In Malaysia,Petroliam Nasional Bhd (Pet- environments for training purposes could go
Jerome Kay,co-founder of home-grown AR ronas) wants to use VR technology to train its up to millions.But VR technology could drive
and VR start-up Virtual X Sdn Bhd, believes staff for technical and safety works. Without the cost down significantly.
that while gaming is the most promising delving into details, Kay says the start-up is
area,AR and VR applications in the industri- working on a project with Petronas to train its Tenaga Nasional Bhd (TNB) is another com-
al sectors are gaining ground. Most people, employees to operate the piping system in a pany working with Virtual X to deploy AR
he observes, tend to overlook their applica- simulated world with the help of a VR headset technology. One of the potential solutions is
tion in the industrial sectors for learning and other equipment. similar to what is shown in the Iron Man movie,
and training. In fact, local conglomerates when Tony Stark, its protagonist,wrapped in
in the energy and utility sectors are already “The staff would follow commands from his Iron Man suit,can identify at a glance var-
their instructors to turn on and off specific ious objects quickly with the details provided.
pipes in the virtual world to learn about the
entire piping system. It is traditionally done “For instance,say,you are a TNB technician
servicing a substation.You put on an AR head-
iaTnrddaduninsstgforivremasluianengd set, which is like a pair of specs, but bulkier,
Jerome Kay and Lau Yoke Wee left their jobs a couple of years ago and walk into the plant.The AR headset would
to set up Virtual X in a bold move to take virtual and augmented reality help you identify the number of machines in
(VR and AR) beyond gaming to drive change across industries the substation and provide additional infor-
mation on top of them. Perhaps it tells you
that three out of the 50 machines need to be
repaired and the essential steps to fix them.

“Technicians are usually seen as having a
less desirable job as it can be tiring, and the
working environment is not as comfortable.
AR can make their work easier and provide
them with a new and exciting working expe-
rience,” says Kay.

However,AR and VR should not be deployed
independently but combined with other tech-
nologies such as artificial intelligence,big data
and cloud.The key is for industrial companies
to adopt a data-centric approach to enhance
work productivity and efficiency.

In an ideal situation,for instance,electron-
ic devices are installed on various machinery
and equipment to collect real-time data before
it is sent to the cloud to be analysed.The data
would then be fed into AR and VR headsets
for further decisions to be made and actions
to be taken.

“Most companies locally do not have such
a capability yet. But they can still key in and
update data from machines and equipment
manually to the cloud.It is just less efficient,”
says Kay.

I hope the younger
generation of
entrepreneurs,
including me, will
think more about
how to make the
world a better place
by coming up with
innovative solutions.
We shouldn’t be
following and
chasing trends with
the thought of
making money.

Kay (right)

VIRTUAL X

Virtual reality can be used for technical and safety training in the oil and gas and utilities sectors SR19

Founded with RM4,000 without similar.The subscription-based model is more AUGUST 30
external funding stable and sustainable.We can also focus much 2021
Founded in 2019,Virtual X started out in 2018 better on product enhancement,” Kay says.
as Aviasense.Today, it is establishing itself as Rfpoloaroyometrhser
a key VR/AR player in the industry, chalking The duo had to bootstrap during the first two
up a seven-figure revenue this year from just years of the start-up to keep it going.They did FROM PAGE 16
about a hundred thousand ringgit over two not take any salary during that period.“It was
years ago. Its workforce has grown to eight the so-called ‘dark period’ for us. It was only year it means that there is a lot more room
people today from just two at the beginning. in late 2019 that we started paying ourselves for other players.
a salary,” says Kay.
“From last year to this year,we saw a growth Riding out the pandemic “If you look at China, Taobao can settle
of five to seven times. It is good. And we will Despite the fact that Malaysia has been hit more than a million deliveries a day while here
not be defeated by the pandemic,” says Kay, by not only the Covid-19 pandemic but also PosLaju handles 1.2 million parcels which they
who is 29. political uncertainties, Kay believes that it is settle in seven days. So we need more players
not all doom and gloom even as the country to come in to solve this logistics issue, and
Before launching the start-up,Kay and his marks National Day on Aug 31. He says Ma- secondly technology is not really in place, so
friend Lau Yoke Wee (co-founder of Virtual X) laysia’s economy is evolving and the building I think there is room for more players to come
first set up Aviasense with an initial capital blocks are being put in place. in share the cake,” he says,adding that unlike
outlay of RM4,000,which was the cost to buy the ride hailing industry, delivery is about
a gaming computer to produce VR content for For one, the current situation has forced players leveraging on each other in order to
property companies.The idea came up when business owners to be more open-minded resolve daily backlogs.
the duo were complaining about their jobs about technology adoption. Companies that
during a tea session. successfully digitalise their businesses are Izzairi is optimistic of the path ahead,point-
likely to emerge stronger post-pandemic. ing out that delivery platforms will continue
“I was a salesman for a software company, to grow as the country’s pace of digitalisation
and he was an engineer. We were complain- “I would say digitalisation is not as hard picks up. Delivery platforms, he believes,will
ing about our work and went through a list of as many have imagined.And there are many become very much part of the future economy.
things we could do [if we were to start our own resources and support out there provided
business]. AR and VR came up as something by government-related agencies and big The Covid-19 pandemic,he says has shown
interesting we could work on. corporations to help businesses transform that delivery services aren’t a need but a must.
themselves. For ZeptoExpress, revenue from the e-com-
“The next day, Lau, 32, resigned from his merce sector grew 300%, and even though
job.He is that gung-ho.Whereas for me,I told “Based on my understanding, MDEC (Ma- revenue from SMEs and corporate clients con-
him I was not going to make any impulsive laysia Digital Economy Corporation) is giving tracted,on average the company saw its revenue
decision yet,and waited for six months before out grants [to businesses]. Maxis is helping growing some 170% to 180% in the last year.
quitting my job,” Kay remembers. small and medium enterprises embark on
their digitalisation journey too, with its own “The number of deliveries will continue to
The duo’s earlier projects were mainly with money. Axiata is doing the same. There are grow as everyone is forced to go online.With
property companies looking to establish their options available. or without the pandemic what’s clear is that
online presence by having virtual showrooms. the opening of more shops or retail outlets is
The company managed to stay afloat. “The older generation may think they are not relevant to businesses anymore.”
not tech-savvy enough to do so.But honestly, Each failure a learning curve
However,projects from the property sector you don’t have to be tech-savvy. What is re- After six years in business,Izzairi admits that
dwindled and the two partners went through quired is a few days of learning.And then you the experience has changed him.“In terms of
a hard time until they were invited by Pos Avi- will realise it is not that hard.” my personality and behaviour and in terms of
ation, a subsidiary of Pos Malaysia Bhd that how I think and how I make decisions there
offers a range of ground handling services,to Kay expects businesses that survive this are changes. In the past, if you’d asked me to
join its hackathon. period will benefit from the huge pent-up de- speak in front of a CEO of a bank I’d be very
mand in the post-pandemic world. And they scared and shy, and it was difficult for me to
“We pulled in another game developer friend are very likely to emerge stronger in the mar- make decisions.I didn’t have that much con-
to join the competition.We developed a training ket, he adds. “I would say just bear with it for fidence. But as time went by, and especially
module for them in 23 hours and won second now. It’s very hard, even for us. But if we can when you run your own company, you find
place. Through conversations with the other ride out this pandemic,the growth prospects yourself meeting with many people.You need
participants, we realised that there is a huge are very good when it is over.” to convince people and close deals because your
industrial market for AR and VR technology,” company depends on you 100%.
Kay says. Kay is also cognisant that the pandemic is
expected to last until 2023,which is why dig- “As an entrepreneur you need to have those
Subsequently,the duo and friends joined an italisation of businesses is essential, he says. critical thinking skills,to be able to make deci-
accelerator programme organised by Petronas He adds that the government plays an impor- sions fast,to be firm and at the same time also
and launched their first VR product specifically tant role in helping the country recover from very agile in making decisions for the whole
for industrial companies.That was when they the devastating impact of the pandemic and business. So it has improved those traits.”
decided to set up Virtual X. And they slowly that it is important to have a clear and defined
built their presence from there and started long-term plan for the country to carve out its He admits that it is increasingly difficult
working with other big corporates,including niche in the global market. to keep thinking of the next big idea. “Each
TNB, the following year. day we face many new scenarios in our daily
“I hope the younger generation of entre- life, and that entails new problems that need
It wasn’t always smooth sailing,though,says preneurs,including me,will think more about solutions. So we need to quickly adapt and
Kay.Before rolling out the subscription-based how to make the world a better place by coming come out with a new solution that could help
product for industrial companies,Kay and Lau up with innovative solutions.We shouldn’t be ease or lighten the problems people are facing.
produced VR content for property companies following and chasing trends with the thought
on a project basis. It was a stressful period as of making money. “It’s normal to hit a brick wall when trying
they were left with no income some months to find solutions to a problem. But each time
as job flow was erratic. “If you are chasing money all the time, we fail,we treat it as part of the learning curve
it will outrun you at some point. Instead, to improvise better and sometimes even pivot
“There were periods in which we worked for think about what you can do to create a pos- the entire idea in order to have solid solutions
16 hours a day and there were also days when itive impact on the world. And money will to the problems that we are trying to solve,”
we had no work.After launching our product come to you.” — By Kuek Ser Kwang Zhe E he adds.
in 2019, both of us were more confident and
not as stressed,even though the workload was The company,which has not relied on ex-
ternal funding in the past four years,recently
secured its first venture funding for an undis-
closed seven-figure sum from shariah-compli-
ant venture fund Ficus Venture Capital.“With
the new funds raised,we plan to set up more
mid-sized fulfilment hubs and expand our ser-
vice coverage areas in high density areas.We
also plan to increase our fleet by hiring more
riders and drivers,and expand our services in
KL, Johor Baru, Penang and Ipoh. With that
we’ll be able to do 30,000 deliveries a day and
make about RM60 million in revenue a year
… and that’s not very far from where the big
boys are standing.” — By Sreerema Banoo E

SR20 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

IB Y PATHMA SUBRAMANIAM and the raw deal they were getting for
da Faranina Othman believes in financial empower- their produce,she took it upon herself
ment, mentoring children and adults to help build to help build a sustainable ecosystem Household
better and financially better off communities.That for them. empowerment
is why she started Grow the Goose, and later Bor- Nina founded Borneo Cocoa, a so- is key to
neo Cocoa.
Nina, as she is fondly called, is a financial em- cial enterprise empowering cocoa
powerment advocate and coach. When she moved to smallholders in the region with the changing the
Sabah three years ago, little did she realise she would knowledge and skills to create their money mindset
find herself guiding a community of farmers to dis- cocoa-based products through ethical
cover a niche business in cocoa. of all.and sustainable cocoa farming and
It all started when Magret Darusin took an interest production, as well as to, hopefully, Nina
in what Nina was doing then.Magret is a subsistence earn better incomes.
farmer and an all-around liaison in the village where “We found out that many of them
Nina was running workshops for teenagers and young have access to micro-funding platforms
adults under her Grow the Goose initiative. such as Tekun Nasional and Sabah
Nina established Grow the Goose Solutions in 2015, Credit Corporation. What happens is
conducting money management programmes for chil- they take a loan,pay it back and then
dren.She wanted to create awareness on the importance they take it again.They are constantly in a debt cycle
of raising financially responsible children,as debt and without any real change to their business or their lives.
bankruptcy continue to climb to never-before-seen Apart from helping Magret and her fellow farmers
levels because young adults know little about manag- establish a sustainable income stream, the Grow the
ing their finances. Goose team is also thinking of ways to get the farmers
on to a micro-investment platform or a savings scheme
to help them break the cycle.

Empowerment is key
From Grow the Goose to Borneo Cocoa, Ida Faranina Othman’s ventures
are focused on helping communities help themselves — by creating
awareness on financial literacy, especially among children, and
guiding cocoa farmers in Sabah to earn sustainable incomes

As it is also a social enterprise, Nina dedicates a “The [most valuable] asset they own is their land,but This has not just created an income for the siblings
portion of her profits to run free financial literacy pro- as ancestral land is passed on from generation to gener- but also for their network of growers and community
grammes for marginalised communities. ation,their land bank is eventually diluted,” she notes. businesses.
Over the course of the pandemic,they have bought
Grow the Goose is a play on the classic children’s Seeing Magret’s unwavering enthusiasm to upskill more than 200kg of cocoa beans,which they have,to-
tale, The Goose That Laid the Golden Eggs, from Aesop’s herself, Nina also got Magret enrolled in Academy for gether with the farmers, learnt to ferment and dry.
Fables.As opposed to slaying the goose,Nina advocat- Women Entrepreneurs (AWE),an online business and “The idea is two-pronged.While my children have
ed nurturing. finance academy created by the Thunderbird School of their own thing going, we experiment with recipes
Management and the University of Arizona. AWE is and do market validation to help build another source
“Magret, who handled the catering for the work- funded by the US Embassy in Kuala Lumpur. of income for the Kampung Tambatuon folk. Apart
shops, asked me why I was guiding only the young from farming, the village is also a beautiful eco-tour-
in building their financial and business knowledge, Being in the academy exposed Magret to the ins ism location.
and not offering classes to older folk.I asked what she and outs of cocoa processing. She learnt how to use a “So, I figured that when the situation improves
wanted to know and how I could help. computer in the process,which was a challenge itself. and they get visitors again, tourists could buy their
cocoa produce as souvenirs or the curated gift boxes,
“That conversation changed my focus a bit.While “Magret learnt how to use the laptop and improve which are things that were sold here before. Tour-
we are used to working with children, there isn’t the her English by using Google Translate. The most in- ists aren’t likely to buy bags of rice to take back with
same kind of support system here for adults.Household spiring bit,however,is that she never let poor internet them,” Nina says.
empowerment is key to changing the money mindset connection derail her ambitions. The inspiration came from South American coun-
of all,” she says. tries where tourists partake in activities such as cere-
“From just being a farmer,she became an entrepre- monial cacao rituals,which were a part of the Mayan
After the workshops ended, Nina visited Magret’s neur,and applied for a business licence from the Kota and Aztec cultures.
mountainside plot in picturesque Kampung Tambat- Belud local council,” says Nina. Nina’s Grow the Goose endeavour,on the other hand,
uon,Kota Belud,where the latter grew paddy and cash has moved online as a result of social distancing rules.
crops such as pepper and pineapples.The sight of rot- Magret’s company, Butiza, which means pearl in With family-edition modules, she conducts 2½-hour
ting cocoa pods caught her attention. Kadazan, is the only one with an active cocoa licence workshops for children and parents.
in the constituency, according to the Malaysian Co- Financial empowerment and entrepreneurial skills
Upon further inquiry,Nina learnt that several farm- coa Board. have become even more pertinent following the adverse
ers received free cocoa seedlings from the Malaysian economic impact resulting from Covid-19,emphasises
Cocoa Board some years ago and planted the seedlings “This whole episode has taught us the resilience of Nina. Insufficient savings, lack of a social safety net,
at the edge of their paddy fields and vegetable plots to the community,and as for Magret,we spend so much income shock and sudden job loss owing to the pan-
see if the crop would reap them any financial benefits time together that she has become like the godmother demic have thrown socio-economic inequalities into
in the coming years. to my children,” says Nina. sharp relief.
Through engagements with the Sabah Social En-
The only problem was that the majority of them did The project Nina started also inspired her eldest trepreneurs Network, Nina found that many who
not know how to turn the cocoa harvest into a worth- son,Armand Idrizam,12,to start Koko Loko — a line of had migrated to the capital for jobs are back in their
while cash-yielding crop when the time came.“Of the healthy cocoa-based snacks sourced from cocoa growers kampungs now.
12 farmers who planted the seedlings,only four both- in Sabah — as a joint venture with his younger siblings “These people [who have come back] have in-depth
ered harvesting the pods and after all the effort taken Faheem, 10, and Julia, 5. knowledge in areas such as digital marketing.But they
to process 10kg to 20kg of cocoa, they got only RM60 aren’t interested in agriculture or farming. However,
to RM70,” she says. The family’s move to Sabah in 2018 had stalled the some are seeing the value in learning traditional skills
siblings’ homemade sausages enterprise — which was such as bamboo basket weaving and matching that
Apart from price volatility,problems with pests and the outcome of Nina’s first empowerment lessons — and with their marketing skills.
disease have forced Malaysian farmers to abandon the they needed to find a way to continue supplementing “Which is why we hope to turn them into entrepre-
crop. “Worse yet is that the community is an ageing their pocket money for their own goals. neurs. With sustainable incomes, they would be able
one and their children aren’t interested in taking up to address unemployment, adapt and encourage oth-
the trade,” says Nina. At the height of the coronavirus pandemic in Feb- ers to think out of the box,” she says.
ruary, Armand began working on recipes for granola E
Although cocoa is no longer produced in large mixes and nut spreads.Together with the Sabah Soci-
amounts, Malaysia is among the giants in grinding ety for the Deaf, Koko Loko started producing snacks
and supplying the crop to premium chocolate manu- such as cocoa nibs,which are now sold online from its
facturers worldwide. Nina says cocoa beans from the home base in Kota Kinabalu.
African continent and Indonesia are sent to Malaysia
to be ground. Staying true to Grow the Goose’s exhortation to give
back to society,20% of the children’s net profits go towards
Appalled by the outcome for their cocoa endeavour greening the earth projects such as planting more trees
and mangroves as well as coral propagation in Sabah.

SR21AUGUST 30, 2021

SEPT 29
2009

QL creates sustainable shared value
in food production

QL Resources Berhad is in a unique sustainable practices in food “ We continuouslyassess our priorities “
production. QL has reimagined the to ensure we deliver on our promise
position. An agro-based food producer, components within each value chain of creating nourishing products from
QL operates businesses that span the for more sustainable food production agro resources for the benefit of all.
entire value chain from upstream and to create positive impact for There is reinforced dedication to
raw material sources to downstream stakeholders. sustainability and environmental
production and sales activities. Progressively strengthening its focus at each of QL’s business pillars.
Each of its principal activities of Marine sustainable operations foundation has While it may be a challenging
Products Manufacturing, Integrated helped QL sail through crises in its 33 journey, it is necessary to build
Livestock Farming, Palm Oil and Clean years of operations. It is prepared to do sustainable food production businesses.
Energy, and Convenience Store Chain so once again in the current dynamic Dr Chia Song Kun
provides opportunities for it to lead business landscape, focusing on three Executive Chairman, QL Resources
the path forward in incorporating core themes for the mid- to long-term.

Innovation & Technology Driving Inclusive Growth

Utilising cutting-edge technology Enabling access to resources, nutrition
to drive innovation in its business and economic opportunities to build
value chain. thriving communities.

Priorities: Priorities:
• Food innovation • Strengthen livelihood of
• Operational transformation
• Investment in technology surrounding communities
• Provide affordable nourishing food
QL places great emphasis on producing
high quality, nutritious and convenient from agro resources
food for the masses. From food • Support education for children
processing through to packaging, QL
implements strict food safety controls As a food manufacturer, it is vital QL
and meets national and international produces food that are high quality, safe
food safety standards. and nutritious. Beyond that, QL plays its
The establishment of a Health & part in empowering its workforce and
Nutrition Committee drives QL’s strategy communities in which it operates.
and research & development, in pursuit
of continuous innovation. Automated packing system for increased production output. Occupational safety and health is a key
Automation is employed alongside theme for employee well-being and QL
compulsory safe food handling trainings Accelerating Climate Action Boilermech Holdings Berhad, a leading has embarked on the journey to obtain
and regular internal reviews for strict technology provider in clean energy ISO45001, starting with one of its
compliance to produce a wide variety of Applying technological solutions to from biomass and solar, and water companies.
food that meet market demands. improve operational efficiency in line treatment such as palm oil mill effluent QL supports the fishing community
IoT and automation enhanced QL’s withgreenhousegas(GHG)emissionstargets. (POME) biogas and industrial wastewater through its interest-free Fishermen
operational efficiency and production management. By providing technology Financial Assistance Scheme to enhance
capacity to optimise resources while Priorities: and financing, it accelerates clean energy their fishing capabilities and improve
increasing food safety. Investment into • Climate change & emissions and water adoption among QL’s supply their living standards.
newer technologies reduced waste, • Water security chain and Southeast Asian industries. QL also works with partners to address
strengthened efficiencies throughout • Waste management Plans are afoot for a strategic collaboration food security and well-being issues
the value chain and helped improve • Biodiversity on mangrove conservation as mangroves through corporate provision of nutritious
food quality. are important for riparian life and local food. Recognising that health and
Digitalisation technologies implemented Climate change is a phenomenon coastal fishery industry, as well as nutrition are important to the development
towards improving operational efficiency faced by all stakeholders. regulating climate through their of children and youth, QL distributes
also help QL in business intelligence and QL is committed to running the “carbon store and sink” function. food supplies and essential items to
reporting and performance improvement. business in a responsible manner, QL believes these initiatives will set a underprivileged communities.
with consideration of its impact to the strong foundation for its commitment to Education birthed QL. Education is
IoT sensors in QL’s farmhouses provide environment. mitigate climate change and safeguard the key to long-term socio-economic
real-time dashboard view environment To this end, QL has outlined a three-year the environment for future generations development. QL invests into initiatives
condition data. The standardised and environmental roadmap focussed on to enjoy. that enhance the school environment
rich data enables benchmarking and achieving 20% GHG emissions intensity for children. School facilities are
reduction by its financial year 2026. upgraded for a more conducive
learning environment.

timely decision-making for continuous The roadmap guides QL on managing
farm improvements towards and expanding its renewable energy
uninterrupted food production. generation and improving on energy,
water and waste management to
Upstream, the QL Poultry Centre of minimise environmental pollution risk,
Excellence comprising experienced and encourage a circular economy.
veterinarians, microbiologists and
nutritionists, focus on four key areas QL invested in renewable energy to
namely flock health, disease control accelerate decarbonisation through
and surveillance, nutrition and audit. on-site power generation such as
Technical training courses strengthen utilisation of solar energy.
the capabilities and technical skills of
QL’s farm team and promote good farm QL is also expanding its renewable Solar panels installed at QL's plant in Endau, Johor
management practices and biosecurity. energy business through its subsidiary, as part of the initiative to increase use of renewable energy.

QL’s holistic approach is in support of the United Nations In its capacity, QL addresses QL is clear on the role it plays as an agro food producer
Sustainable Development Goals (SDGs). Its goal is to end 10 out of the 17 SDGs. in leading the way for sustainable food production, food
poverty and other deprivations, complemented by security and reimagining the agriculture sector. Driven by
strategies that improve health and education, reduce its mission of creating nourishing products from agro
inequality,and spur economic growth – all while tackling resources, QL is fully committed to nourishing the
climate change for peace and prosperity for people and world in a responsible, sustainable and safe manner
the planet, now and into the future. for the benefit of all.

SR22 NATION-BUILDING AND
THE FUTURE ECONOMY
AUGUST 30
2021

Feicnotneochmtioc rheevlpivdarlive
merchants that serve these households how
to accept digital (cashless) payments.I believe
merchants that had adopted these technolo-
Financial technology (fintech) is fast becoming a central part of gies are in a better position now to meet the
the financial services industry and future economy. The fintech challenges of Covid-19.”
space has attracted a huge crowd of local start-ups and young This aid distribution project, carried out in collab-
entrepreneurs, and many of them have begun to establish a oration with state governments,disburses more than
strong foothold in the financial sector. RM150 million a year to 100,000 households in the B40
income group in Selangor, Perak and Kedah. Kiple’s
cashless systems,which include an e-wallet and pre-
paid cards, are used by more than 20,000 merchants
The financial services industry rapidly trans- Effendy, in a recent interview with The Edge, says across these states.
formed in 2020 as Covid-19 accelerated the that digital banks and payment heavyweights have
growth of fintech and the adoption of digital the ability to change how society consumes financial During the pandemic, Kiple continued to collabo-
banking services.Industry observers say the services,and that incumbents who are very strong will rate with government authorities and other entities
progress of digital adoption,typically carried not be sitting still.“I believe the consumer is going to to assist small traders in adopting cashless and con-
out over five years,took place in a short space win big, and that is good for everyone,” he adds. tactless payment options. It also helped hawkers in
Perak with digitalised business permit applications
and transformed phones into payment terminals with
multi-wallet features for merchants in Selangor.
of 10 months during this period. Thirty-three-year-old Teoh Wei- “We ensured that our systems are easily distribut-
Today, fintech is becoming a cen- Xiang is founder of Versa Asia Sdn ed and scalable.This allowed us to reach more states
tral part of the country’s financial ser- Bhd, a home-grown fintech start-up. within a shorter time when we partnered with Selan-
vices sector. Going forward, even more It was launched in January last year gor,Kedah and Perlis in the Kasih Ibu aid programme,
digital financial services, mostly pro- to provide retail investors with an eas- which is designed for mothers from the B40 commu-
vided by fintech, can be expected in ier channel to invest their savings in nity,” says Liew.
the post-pandemic new normal as the a money market fund. By replicating “Tech users from the B40 households and the busi-
business community moves to meet theAnt Group’s Yu’e Bao business mod- nesses that serve this community have totally different
growing demand from digital natives el,it also plans to tie up with a global requirements compared with SMEs (small and medium
and smartphone users in Malaysia and payment company and let users invest enterprises) and larger entities such as financial insti-
its regional neighbours. in the fund. tutions.We tailor our education material to serve each
Initiatives and programmes by the There is also CoinGecko,one of the segment so that they can adopt technology quickly and
government and regulatory bodies,im- world’s most viewed cryptocurrency integrate it seamlessly into their operations. We also
plemented in 2020, are also rapidly ac- ranking and analysis websites founded have a dedicated team to offer end-to-end support such
celerating an ecosystem of innovation in 2014 by Bobby Ong and T M Lee.In as onboarding,training and post-deployment guidance.”
— a prerequisite if the country is to be- There is no doubt January this year,it received 120 mil- Addressing pain points
come a leading digital economy by 2030. that Malaysian lion pageviews, which represented a The services provided by fintech providers are usually
SMEs must tenfold year-on-year growth from the faster and cheaper than traditional financial services
According to the Fintech Malaysia digitalise quickly year before. While the duo have re-
Report 2021, RM460 million worth of
mobile banking transactions were con- and efficiently to ceived various offers from other com- and therefore, more accessible to SMEs and microen-
ducted in 2020,a 125% jump compared to compete in the panies that want to either invest in or terprises. Nevertheless, digitalising is a journey and
2019.The usage of e-wallets also reached new normal. But acquire it,Ong and Lee have not looked often very challenging for traditional business own-
new highs,with three million new mo- there are at any of these seriously as they have ers that lack technical skills and are unfamiliar with
bile banking service subscribers in 2020, significant a lot more to work on and offer to the digital tools.
while 400,000 new businesses registered cryptocurrency community.Theywere
for QR code payment acceptance,a jump barriers to SMEs that had deferred the use of enterprise sys-
included in the Forbes 30 Under 30Asia tems before the pandemic may find the cost of dig-
of 164% from the preceding year. overcome ... List in 2019. italising their operations to be a for-
Rapid adoption of digital finance A new sub-segment midable barrier now.“The systems for
Liew microenterprises and small traders are
can also be seen across other fintech that has generated a
segments such as alternative financing lot of interest is the fairly straightforward.Their entire op-
and cryptocurrency trading.This pace buy now, pay later erations may not have to be digitalised,
of adoption is expected to pick up when (BNPL) space,made up and often,a hybrid solution that caters
Bank Negara Malaysia grants five digital of local fintech compa- for digital and manual processes will
banking licences in the first quarter of 2022.As many nies such as Split,which reported pro- suffice until they decide to do more,”
as 40 parties are reported to have registered their in- cessing RM10 million within months says Liew
terest in applying for this licence. in 2020, and foreign players such as “Bigger SMEs with more complex
The bustling fintech space in the country, mostly Atome, which has a presence in nine operations and more daily orders need
driven by the younger players in the industry,is led by countries, including Malaysia. a comprehensive solution. They need
digital payment solutions and e-wallets offered by local Fintech in Malaysia is expected to a secure and scalable solution that is
operators such as Touch ’n Go,Kiplepay and senangPay. drive a more inclusive economic re- customised to their needs and that can
These are followed by insurtech,lending,remittances, covery as financing is made accessible help transform manual procedures and
investing and funding. to low-income participants and small The subscription- be implemented fairly quickly. This
and micro businesses. based business system must comply with regulatory
A major bank-backed player in the fintech industry model has requirements.Many SMEs are finding
is CIMB Digital Assets (CDA),which is helmed by CEO
Effendy Shahul Hamid. The CIMB banking group’s Levelling the playing field for existed for years the cost of investing in an end-to-end
acquisition of a stake in Touch ’n Go laid the founda- economic growth but it is a new system to be a barrier to adoption now.
tion for the formation of CDA. Today, CDA’s portfolio Kiplepay Sdn Bhd (Kiple),a technology concept for most
includes the Touch ’n Go eWallet — which is owned solutions provider well known for its of the SMEs “We see collaborations between the
by TNG Digital Sdn Bhd,itself a joint venture between payment gateway services and a whol- on Subplace. private and public sector as an effective
TNG and Ant Group,the parent company of Alipay,Chi- ly-owned subsidiary of Green Packet way to assist SMEs with the financial
na’s largest digital payment platform — as well digital Bhd,had initiatives to promote finan- This business investment needed to digitalise their
operation.An example is our (via Green
banks in Vietnam and the Philippines. cial inclusivity among the underserved model builds Packet Bhd) collaboration with Malay-
Early this year,TNG Digital made its foray into the communities before the outbreak of brand loyalty sian Industrial Development Finance
Covid-19. and customer Bhd (MIDF),launched on July 8.Here,
financial services industry with the rollout of GO+, a retention. MIDF provides financing solutions
financially inclusive investment product that allows Acting CEO Ricky Liew,43,says: “We and financial advisory services while
Touch ’n Go eWallet users to gain access to low-risk provided cashless solutions for state
money market investments for as low as RM10.Aside governments to distribute financial Mak we provide digital solutions.
from being able to earn more than their current ac- aid to the B40 community before the “There is no doubt that Malaysian
counts,users’ GO+ balances can also be used across all pandemic.To implement this solution, SMEs must digitalise quickly and effi-
Touch ’n Go eWallet payment use-cases. we went to the grassroots level to teach ciently to compete in the new normal.