TheEdge 080622

WEDNESDAY, JUNE 8, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 389/2022

CEOMorningBrief

STAGFLATION DANGER SPURS WORLD BANK
TO CUT GLOBAL GROWTH OUTLOOK p18

WEDNESDAY, JUNE 8, 2022 w w w. t h e e d g e m a r k e t s. c o m

ISSUE 389/2022

CEOMorningBrief
HOME: Improving domestic supply-side policies key to managing inflation, says RAM p3
Dialog buys Canadian-listed firm in first mature upstream O&G venture outside Malaysia p8

Najib makes another bid to adduce fresh evidence as he seeks to nullify SRC trial p10
WORLD: Indonesia eyes subsidies, nuclear power in renewable energy bill p18
UK PM Johnson seeks to rally his party after surviving leadership test p26

IHH Healthcare plans
IMU disposal for
RM1.35 bil cash

Report on Page 2.CMB_190mm(w)x50mm(h)_8Mar2022_OL.pdf 1 3/3/2022 7:58:26 AM

WEDNESDAY JUNE 8, 2022 2 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (June 7): IHH Health- IHH Healthcare IHH is expected to gain RM901.98 million
care Bhd is embarking on disposal exercises plans IMU from the proposed disposal. Cash proceeds
worth RM1.35 billion, including a divest- disposal for from the deal will be utilised for general
ment of its entire stake in IMU Health Sdn corporate purposes (including debt re-
Bhd (IMUH) to Inbound Education Hold- RM1.35 bil cash payment, capital expenditure as well as
ings Sdn Bhd (IEHSB) for RM1.24 billion. mergers and acquisitions, investments and
BY SULHI KHALID working capital) over the next 12 months.
IEHSB is a wholly-owned subsidiary of In- theedgemarkets.com
bound Education Partners Sdn Bhd (IEPSB), The proposed disposal is expected to
which is owned by Hong Leong Healthcare tive asset firmTPG, holding approximately be completed in the first quarter of 2023.
Group Sdn Bhd (45%), Singapore’sThe Rise 49.95% each.
Fund Inbound SF Pte Ltd and the Employ- For the financial year ended Dec 31,
ees Provident Fund Board (EPF) (9.99%). Last January, The EdgeWeekly had high- 2021, IMUH registered a consolidated
lighted private equity firms Southern Cap- profit after tax and minority interest of
The Rise Fund was founded by TPG in ital andTPG as the contenders to acquire RM54.52 million while its consolidated
2016 with US$13 billion worth of assets un- IHH’s International Medical University net assets came in at RM376.94 million.
der management. Malaysia.
IHH’s non-independent non-executive
IMUH holds IMU Education, IMC In a local bourse filing on Tuesday (June director Tunku Alizakri Raja Muhammad
Education Sdn Bhd and IMU Healthcare 7), IHH said the move is in line with the Alias is EPF’s representative to the IHH
Sdn Bhd. group’s strategy to divest its non-core assets board, while chairman and independent
and recycle its capital by deploying the pro- non-executive director Tan Sri Moham-
In conjunction with the IMUH disposal, ceeds to grow its core healthcare delivery med Azlan Hashim is the board member
IHH is also selling a hospital that is still un- services business. and chairman of the investment panel of
der construction in Kuala Lumpur, together EPF. Given their relationship with EPF,
with its assets and liabilities, to Columbia Based on the original cost of invest- both have abstained and will continue to
Asia Sdn Bhd (CASB) for RM139 million, ment in IMU Group of RM308.67 million abstain from deliberations and voting on the
less an outstanding bank loan amount of which was incurred in 2010 and 2011, proposed transactions at the relevant board
RM38 million as of Dec 31, 2021. meetings of IHH.

CASB is a wholly-owned subsidiary Shares in IHH Healthcare ended un-
of Columbia Asia Healthcare Sdn Bhd, changed at RM6.50 onTuesday, giving it a
whose indirect shareholders are Hong Le- market capitalisation of RM57.22 billion.
ong Healthcare Group and global alterna-

KUALA LUMPUR (June 7): RAM Hold- RAM Holdings stresses to acquire more than 50% of RAM.
ings Bhd has stressed that its operation’s independence of Meanwhile, RAM said that its annual
independence remains unaffected despite operation remains
changes in shareholding, the rating agency unaffected despite general meeting, which will be held on
said in a statement on Tuesday (June 7). June 9, will see its shareholders vote on
changes in shareholding the proposed amendment to clause 12.1
The rating agency referred to an article of its constitution (which highlights any
published by a local news portal which claimed BY SULHI KHALID change in shareholding structure which
that the independence and credibility of the theedgemarkets.com results in a party controlling 20% or more
rating agency might have come under question shares will require the approval of the SC).
following its acquisition by CTOS Digital Bhd. to serve in the best interest of all bond
market participants,” it shared. RAM clarified that the SC would not
RAM highlighted that it is strictly regulated grant approval to any party to exceed this
by the Securities Commission Malaysia (SC). RAM believes bond market participants limit, if it deems this to be detrimental to
can attest to RAM Ratings’ independence the best interest of the credit rating agency
“We are bound by and [we] unceas- and integrity in performing its mandate. and the bond market.
ingly adhere to the ethics of good govern-
ance, transparency and integrity set out in According to CTOS’ annual report 2021, “RAM is confident that our credit rat-
the SC’s Guidelines on the Registration of it had a 17.23% stake in RAM as at April ing operations at RAM Ratings will not
Credit Rating Agencies (Guidelines) and this year. It was reported by the news portal be impacted and shall remain independ-
the Capital Markets and Services Act 2007. that the SC had granted approval to CTOS ent, regardless of the outcome of the vote.

“Regardless of past, present and future “We reiterate our commitment to the
shareholding changes, the integrity and principles of good ethics, transparency
independence of the credit rating agency and integrity that will remain core values
have and will continue to be the bedrock of RAM Ratings’ operations, now and in
of RAM Ratings’ operations — established the future,” it said.

WEDNESDAY JUNE 8, 2022 3 THEEDGE CEO MORNING BRIEF

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Improving year as the effects of ongoing global sup- Mustapa: Fuel,
domestic supply- ply chain disruptions are transmitted to cooking oil
side policies key Malaysia’s consumer prices.
targeted subsidies
to managing “In Malaysia, the degree of cost pass- in the works
inflation, says through from companies to households is
somewhat mitigated by existing subsidies BY ANISAH SHUKRY & YVONNE MAN
RAM and price controls. Bloomberg

BY SULHI KHALID “However, as labour-intensive and com- (June 7): Malaysia has begun work on
theedgemarkets.com modity or import-dependent firms will be replacing its blanket petrol and cooking
most affected by current conditions, the oil subsidies with a more targeted ap-
KUALA LUMPUR (June 7):The nature degree of cost pass-through would be sig- proach, as government spending rises
of cost-push inflation limits the effective- nificant for these firms,” it said. to blunt higher living costs.
ness of conventional monetary policy while
the government’s various price control ef- RAM also pointed out that sec- “The target is to ensure that those
forts will impose an exorbitant fiscal cost, ond-round price effects or a wage-price who need subsidies, will get the sub-
RAM Ratings has cautioned. spiral is not immediately evident as labour sidies,” Economy Minister Datuk Seri
market conditions have yet to fully recover. Mustapa Mohamed said in a Bloomberg
Higher oil-and-gas-related revenues TV interview Tuesday (June 7). “The
will be insufficient to fully offset the fis- Nevertheless, rising food prices is a pol- sooner it is done, of course, it will relieve
cal strain, it observed, noting domestic icy concern as at least 20% of the expend- pressure on the government’s budget.”
supply-side policies including improving iture of most Malaysian households goes
domestic logistics and production capa- towards food. Unanticipated subsidies are expected
bilities, favourable trade agreements with to push the government’s total spending
suppliers of key commodities, and stream- In particular, the general price of food is in 2022 “significantly higher”, by about
lining administrative bottlenecks, would be expected to climb faster than the 4% uptick RM30 billion, the Finance Ministry said
crucial in managing inflationary pressures. registered in the first four months of the on Friday, adding that the higher reve-
year, if supply conditions remain unresolved. nue from rising commodity prices was
In a statement onTuesday (June 7), the insufficient to offset the spike.The extra
rating agency said it expected Bank Negara “The fiscal cost of managing subsidies funds were mainly for petrol, chicken
Malaysia (BNM) to mainly adjust interest and mitigating price pressures is substantial. and egg subsidies as well as flood re-
rates on the basis of economic recovery liefs, it added.
while also responding to the risk of de- “Higher oil-and-gas-related revenues
mand-pull induced second-order effects will be insufficient to fully offset this fiscal Prime Minister Datuk Seri Ismail
and inflation pervasiveness. strain, thus necessitating the realignment Sabri Yaakob said Monday that the fi-
or consolidation of various operating ex- nal subsidy bill this year could breach
As secondary inflation risks remain lim- penditure items. RM71 billion.
ited at this juncture, RAM also expects the
overnight policy rate (OPR) to gradually “This may have implications for some Malaysia’s inflation rate is expected
normalise to end the year at 2.25% in line federal government-led support pro- to slightly increase, yet remain within
with the pace of economic recovery, from grammes,” it explained. the forecast range of 2.2% to 3.2% in
2% at present. 2022, Mustapa said. Consumer prices
RAM also believes that given the na- rose by a modest 2.3% in April, while
“Inflation is expected to pick up this ture of current price pressures, a near-term the core measure that strips volatile food
normalisation of inflation conditions is not and energy costs gained 2.1%.
expected.

“Domestic supply-side policies —
such as improving domestic logistics and
production capabilities, favourable trade
agreements with suppliers of key commod-
ities, and streamlining administrative bot-
tlenecks — will be key in managing infla-
tionary pressures this and next year,” the
rating agency shared.

KUALA LUMPUR (June 7):The Feder- FLFAM projects production of close to 3% in 2022. “How-
ation of Livestock Farmers’ Associations supply-demand ever, the demand for chicken surged rap-
of Malaysia (FLFAM) has attributed the gap for chicken to idly after the recovery from the pandemic.
shortages of chicken supply in Malaysia close in a month This unbalanced surge in demand created
to an unexpected surge in demand as the an impression of shortages despite an in-
economy begins to recover from the Cov- BY HAILEY CHUNG crease in production.
id-19 pandemic. It believes that the sup- theedgemarkets.com
ply-demand gap would close in a month. “Increase of production takes time as the
around 5% annually for the past 15 years. farms have to start growing broilers from day-
In a statement on Tuesday (June 7), Though production experienced a drop old chicks. Following the momentum of pro-
the association said that the production duction recovery, we expect the supply-de-
of chicken, which was disrupted during in 2019 and 2020 because of the pandem- mand gap will eventually close and supply will
the pandemic, has started recovering and ic, FLFAM observed positive recovery in be able to meet demand in a month’s time.”
that it expects the supply-demand gap to
be resolved in a month’s time. But FLFAM highlighted that the poultry
industry is burdened by labour shortages,
Quoting data from the Department of coupled with a minimum increase of 40%
Veterinary Services, FLFAM said that the in imported raw material costs for chicken
growth of broiler production has averaged feed in the past few years.

WEDNESDAY JUNE 8, 2022 4 THEEDGE CEO MORNING BRIEF

WEDNESDAY JUNE 8, 2022 5 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (June 7): The glob- Global recession Although global inflation is forecasted
al economy should continue to register fears set to ease to remain high at 7.1% this year, it should
positive growth in the second half (2H) of in 2H, HSBC says decelerate to 5.1% next year, Fan said,
this year, albeit at a slower pace, but it is adding that “inflation outlook in Asia con-
not likely to fall into recession, said HSBC BY CHESTER TAY & SYAFIQAH SALIM tinues to stay relatively benign as com-
global private banking and wealth Asia theedgemarkets.com pared to inflation pressure in the US and
chief investment officer Fan Cheuk Wan. Europe”.

“We don’t forecast any recession in any Fan highlighted several drivers that
major economies except for Russia, be- could ease recession fears going into 2H,
cause of sanctions. When we look at the including the resumption of economic ac-
bond market development, we no longer tivities in China, strong post-pandemic re-
see an inverted yield curve, we expect the covery in Southeast Asia and potentially
recession fears will gradually ease going massive investment globally following dis-
into the 2H of the year,” she said during ruptive changes arising from the war and
HSBC’s 2H2022 Investment Outlook vir- supply chain bottleneck.
tual briefing on Tuesday (June 7).
“It is important to note that different
Fan expects global economic growth to countries are currently in different states
slow down to 3.4% this year and 2.9% next of economic cycles. While we see higher
year amid market concern of inflation and stagflation risk in euro zone because of
tightening in financial markets.This compares the impact from the Russia-Ukraine war,
to 5.8% global growth in 2021, she notes. but in Asia, we actually see a pretty strong
growth recovery in Southeast Asia,” she
“Global inflation is progressively easing said, adding that HSBC has overweight
but slowly because it has become stickier calls for more resilient markets like the
due to supply chain disruptions and global US, Hong Kong and Asean.
energy shock,” she said.

Malaysians should not worry much Local 2H equities
about GST reintroduction outlook hinges on global

BY CHESTER TAY & SYAFIQAH SALIM strong. I think those factors matter more risk appetite
theedgemarkets.com than the increase in consumer tax. Over-
all, the increase in GST is seen in many BY CHESTER TAY & SYAFIQAH SALIM
KUALA LUMPUR (June 7): Malay- markets around the world, not just in Ma- theedgemarkets.com
sians should not worry too much about laysia but also in Singapore,” he added.
the reimposition of the goods and ser- KUALA LUMPUR (June 7):The Ma-
vices tax (GST), but the concern is more Prime Minister Datuk Seri Ismail laysian equities market outlook in the
about whether the nation has a strong Sabri Yaakob said on Sunday (June 5) second half of this year (2H22) is likely
economic recovery after the Covid-19 that the government was still studying to depend heavily on global appetite for
pandemic, according to James Cheo, the possibility of reintroducing the GST risk assets, with selective investment op-
HSBC global private banking and wealth and had not yet made a decision. portunities in beneficiaries of econom-
Southeast Asia chief investment officer. ic reopening and commodities sectors.
The prime minister said the GST
While the pandemic and its disruptions is capable of broadening the country’s “Currently we are neutral on Malay-
have forced prices to be extremely high revenue base and the government does sia equities, [which are] really tied in a
along with inflationary phenomena, ap- not rule out the possibility of its rein- lot to the general risk sentiment in the
plying the GST in times of inflation would troduction as it is an effective means of global economy, and at this stage the
drive up the prices of goods and services increasing national income and combat- risk appetite in the world economy is
even further, and consumers might pause ing inflation and the rising cost of living. still very fragile,” said HSBC global pri-
some purchases in the short term, he said vate banking and wealth Southeast Asia
during HSBC’s 2H2022 Investment Out- In March this year, the Ministry of Fi- chief investment officer James Cheo.
look virtual briefing onTuesday (June 7). nance considered the reintroduction of the
GST as part of a comprehensive tax reform During HSBC’s 2H22 Investment
“But the question is, how would it affect to strengthen the country’s revenue-raising Outlook virtual briefing onTuesday (June
consumption? Would it really curtail con- capacity.The central bank, Bank Negara 7), Cheo said the market may reassess the
sumption over [the] long term? My [answer] Malaysia, also supported the idea of rein- Malaysian market again when there is “a
is no. It really depends on the strength of troducing the GST as it would ease the more concrete kind of improvement in
the economy, wage growth [and] the long- heavy financial burden on the government. the global dynamics, particularly on how
term prospects of the productivity gains of the recovery is in the picture of inflation”.
the country, and I think Malaysia has all The GST was first introduced in Malay-
these good tailwinds going for it,” he said. sia on April 1, 2015 by the Barisan Nasional Nevertheless,Cheo acknowledged that
government at 6%. GST was suspended Malaysia is on a “fairly solid” growth path
“In that sense, Malaysians should not on June 1, 2018 and finally abolished and given the SoutheastAsian nation’s well-di-
worry so much about the GST increase. replaced by sales and services tax on Sept 1, versified export base from crude oil, palm
So I think what’s important is that ulti- 2018 by the Pakatan Harapan government. oil as well as playing a prominent role in
mately, the reopening of the economy is the global semiconductor supply chain.
The current sales tax rate is 5% and
10%, while the service tax is 6%. CONTINUES ON PAGE 6

WEDNESDAY JUNE 8, 2022 6 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (June 7): Analysts Analysts Cocoaland’s goods via its larger distri-
see product diversification and expan- see product bution network.
sion from Fraser & Neave Holdings Bhd diversification,
(F&N) by taking Cocoaland Holdings Bhd expansion from “Based on our estimates, this acqui-
private. F&N by taking sition could lift F&N’s CY23-24 (cal-
Cocoaland endar years 2023 and 2024) EPS by
MIDF Research has raised its target 0.7%-2% assuming extra finance costs of
price (TP) for F&N to RM30.91 as the private RM22 million for CY23-24, Cocoaland’s
research house believes the privatisation CY23/24 net profit of RM34.5 million/
of Cocoaland will be value-accretive to the BY SYAFIQAH SALIM RM41.7 million (Bloomberg consensus
company due to product diversification theedgemarkets.com forecasts), and completion of this deal
and expansion of its customer base for the by 4Q22 (the fourth quarter of 2022),”
overseas market. Separately, CGS-CIMB Research said said CGS-CIMB.
the deal was a surprise as the research firm
“We maintain ‘buy’ with a revised TP believes F&N would focus on expanding According to CGS-CIMB, it has yet to
of RM30.91 (previously RM30.03) as we its product portfolio towards goods with incorporate the potential earnings accre-
roll over our valuation year to FY23 (the less sugar content. tion into its estimates pending completion
financial year ending Sept 30, 2023) based of the acquisition.
on an unchanged price-earnings ratio of 26 “However, we do concur with F&N
times pegged at earnings per share (EPS) that this acquisition can fortify its plans to CGS-CIMB, which retains its “add”
of 118.9 sen.The PER is based on its five- expand its halal packaged food segment call on F&N, lowered its TP to RM25.60
year historical mean. The dividend yield (an earmarked growth pillar).We expect (from RM29.80) as the research house
is estimated at 2.78%. strong business synergies as F&N can cut its FY22-24 EPS forecasts for F&N
widen its product portfolio and market on higher input costs and a risk-free rate
“Key downside risks include an un- of 4.3% on higher government bond
favourable ringgit to Thai Baht trans- yields.
lation, a stronger increase in raw mate-
rial prices and disruption to the supply “We still like F&N as a proxy for a
chain,” said MIDF in a note on Tuesday recovery in hotel, restaurant and cafe
(June 7). (HORECA) sales (about 30% of FY19
sales), which should offset the higher
Last Friday, F&N proposed to privatise input costs. It also trades at an attrac-
its 27.66%-owned associate Cocoaland by tive 17.1 times CY23 PER, at a 26.3%
buying the remaining shares at RM1.50 discount to its historical five-year mean
each. The remaining 72.34% represents of 23.2 times as well as a 54.4% dis-
325.43 million Cocoaland shares that are count to the overall consumer sector’s
not owned by F&N. weighted average CY23 PER of 34.7
times,” it added.
The total consideration for the proposed
privatisation is approximately RM488.15 At market close, F&N shares were down
million, which shall be satisfied via cash 20 sen or 1% to RM19.80, valuing it at
consideration and will be funded by bank RM7.26 billion.Year to date, the stock has
borrowings. fallen 20% from RM24.70.

“Nonetheless, we make no changes to Cocoaland — which was among the
our earnings forecasts at this juncture.We top gainers — rose 18 sen or 14.1% to
estimate that the proposed privatisation RM1.46, giving it a market capitalisa-
will not have a substantial material im- tion of RM668.1 million. The counter
pact on the gearing ratio of the group,” has jumped 40.4% since the beginning
said MIDF. of this year.

FROM PAGE 5 In terms of foreign exchange outlook, around 4.2800 against the US dollar by
Cheo said while the ringgit has endured end of this year.
Malaysia’s economy grew 5% in the high volatility in 1H, the domestic curren-
first quarter of this year thanks to im- cy will likely stabilise in 2H22 and trade “With the impact of pandemic restric-
provements in labour market, domes- tions receding [and] reopening of the
tic and external demand amid easing economy, private consumption is going
pandemic restrictions. This came after to bounce back, investments are likely to
a 3.1% gross domestic product (GDP) also be quite robust,” Cheo said.
growth last year.
Therefore, he pointed out several se-
Cheo is expecting Malaysia’s GDP to lective investment opportunities, particu-
grow 5.5% this year thanks to tailwinds larly sectors associated with reopening,
from improving manufacturing activi- consumption, banking, commodities and
ties and favourable commodities prices. semiconductor.

This has taken into account an expecta- “Although we are neutral on Malay-
tion for another 50 basis points overnight sian equities, there are selective oppor-
policy rate hikes this year, with Bank Nega- tunities, because various parts of the
ra Malaysia potentially ending 2022 with a economy are actually doing very well,”
benchmark interest rate of 2.5%, he said. Cheo noted.

WEDNESDAY JUNE 8, 2022 7 THEEDGE CEO MORNING BRIEF

The logistics industry J&T Express invests
is the backbone of RM600 mil to fuel
international trade growth ambitions
and commerce.
Boasting a global value of
US$8.6 trillion — according
to market and consumer
data provider Statista —
the industry serves as an

essential lifeline for trade

and other entrepreneur-

ial activities. Asia-Pacific

remains one of the lead-

ing logistics markets in the

world, says the data pro-

vider.

In Malaysia, the freight

and logistics market is ex-

pected to register a com-

pound annual growth rate

(CAGR) of more than 4%

over the next five years,

says market research com-

pany Mordor Intelligence.

With the expansion of the

industry along with expo-

nential growth opportuni-

ties, global logistics ser-

vice provider J&T Express

is looking to increase its

presence in Malaysia and

the region. J&T Express Malaysia

InvestIng In growth CEO Roy Zeng (left) and
Since it was established IJM Land Bhd managing
in 2015, J&T Express has director Datuk Edward
Chong at the signing
grown by leaps and bounds ceremony for the purchase
into one of the largest and of the 12.14ha parcel in
Bandar Rimbayu

most established logistics

companies in the region.

With leading express deliv-

ery businesses in Southeast gor. The 30-acre centre in

Asia and China, its network Bandar Rimbayu, Selangor, is

now spans 12 countries, designed for express distribu-

including Indonesia, Sin- tion, transport, logistics and

gapore, Malaysia, Thailand, warehousing.

Vietnam, Cambodia, the According to the company,

Philippines, Saudi Arabia, it is committed to strengthen-

the UAE, Mexico, and Bra- ing its leadership position in

zil. It currently serves more Southeast Asia and has always

than two billion people been optimistic about Malay-

worldwide. sia’s development prospects.

Although J&T Express Taking into consideration

is a relatively young com- the continued growth of the

pany, a large part of its regional market and strong

success is due to its “cus- demand for both cross-border

tomer-oriented and effi- logistics and domestic ware-

ciency-based” mission. The housing, J&T says now is the

company remains commit- opportune time to ramp up its

ted to providing integrated infrastructure in Malaysia and

logistics solutions through deploy advanced technology. Roy Zeng and Datuk Edward Chong inking the sales and purchase agreement

its intelligent infrastruc- Charles Hou, group

ture and digital logistics vice-president of J&T Express, nology enables us to better tap strong momentum thanks to challenge of bridging the

network — an integral part said, “As a global logistics ser- on our existing networks. This the continuous growth of the needs of society and cus-

of its strategy to connect vice provider, J&T Express is will enhance our operational regional market, we have de- tomers through efficient

the world with greater ef- committed to providing cus- advantage to better meet the cided to invest RM 600 million transport and warehous-

ficiency by bringing logis- tomers with more efficient growing demands of the bur- to purchase a parcel of land ing services.

tical benefits to all. and convenient services.” geoning e-commerce industry and build a logistics centre J&T Express’ success and

To further fuel its “It remains our emphasis to in Southeast Asia.” in Malaysia. In doing this, we continued growth are root-

growth and achieve its strengthen our leadership po- hope to drive the develop- ed in its commitment to in-

ambitions in Malaysia and sition in Southeast Asia through DrIvIng Development ment of the local economy, corporate advanced tech-

across the region, J&T Ex- expanding our presence in ex- J&T Express’ new integrated provide jobs for the commu- nology into its business

press has invested RM600 isting markets. The addition of logistics centre is set to be nity, and play an active role in ecosystem. The company

million in an integrated another facility, and the appli- the largest of its kind for the the development of the lo- is backed by a strong net-

logistics centre in Selan- cation of our advanced tech- company. Located at the gate- cal logistics industry and the work of supportive part-

way to Bandar Rimbayu and long-term development of ners, clients, stakeholders,

The new integrated logistics centre will be designed for surrounded by four thriving the community.” investors and employees.
express distribution, transport, logistics and warehousing
townships, it represents the The new centre will be J&T’s new integrated

company’s continued com- launched in 4Q2024. logistics facility in Rimbayu

mitment to the Malaysian and will undoubtedly contrib-

Southeast Asian markets. strengthenIng Its ute to the economic devel-

“Rimbayu is the future gold- posItIon opment of the nation and

en triangle of Selangor, we As most of its operations are region. The investment is

believe in the future develop- in Southeast Asia, J&T Express proof of J&T Express’ con-

ment potential of this area.” has benefited from the rapid tinued commitment in pro-

said J&T Express Malaysia chief growth of the express deliv- viding customers as well as

executive officer, Roy Zeng. ery service market here. Like thriving online business-

“This year marks the fifth year many other logistics players, es across the region with

since J&T Express commenced the disruptions caused by the more efficient and con-

operations in Malaysia. With Covid-19 pandemic also forced venient services, which the

diversified expansion and the the company to rise to the brand is renowned for.

WEDNESDAY JUNE 8, 2022 8 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (June 7): Dialog Group Dialog buys cession L53/48, POES produced approx-
Bhd’s wholly-owned Singapore subsidiary Canadian-listed imately 2,700 barrels of oil per day from
Dialog Systems (Asia) Pte Ltd (DSAPL) seven oil fields in Thailand in 2021 with
via DSAPL’s 100%-owned Canada-based firm in first plans to increase production in the future.
company 2432707 Alberta Ltd is buy- mature upstream The current production offtake is to a local
ing the entire stake in Canada-listed oil refinery. POES has 2P (proven plus proba-
and gas (O&G) firm Pan Orient Energy O&G venture ble) oil reserves of 4.6 million barrels as at
Corp (POEC) for US$38.7 million (about outside Malaysia Dec 31, 2021,” Dialog said.
RM170 million) in Dialog’s first upstream
O&G venture outside Malaysia for mature BY PRIYATHARISINI VASU According to Dialog, the purchase price
oil producing fields. theedgemarkets.com for POEC will be funded by Dialog’s inter-
nal funding or external borrowing includ-
In a Bursa Malaysia filing on Tuesday ing proceeds from Dialog’s Islamic bond or
(June 7), Dialog said DSAPL had on Mon- sukuk issuance.
day entered into a conditional agreement
with POEC for the proposed acquisition. Barring any unforeseen circumstances,
the proposed acquisition is expected to be
“POEC is an Alberta, Canada incorpo- completed by the third quarter of calendar
rated corporation with its shares listed on year 2022, Dialog said.
theTSXVenture Exchange. POEC, through
its wholly-owned Singapore incorporated “The proposed acquisition will not have
subsidiary Pan Orient Petroleum Pte Ltd any effect on the earnings and net assets of
(POPS), holds 50.01% equity interest in Pan Dialog for the current financial year ending
Orient Energy (Siam) Ltd (POES), which June 30, 2022.
is the operator of concession L53/48, on-
shore Thailand. “However, the completion of the pro-
posed acquisition will have positive effect
“Upon finalisation of the proposed acqui- on earnings and net assets of Dialog for the
sition through POEC’s plan of arrangement, financial year ending June 30, 2023 onwards
POEC will cease to be listed and Dialog will and is expected to contribute positively to
acquire the delisted POEC holding 100% the long-term future earnings of Dialog,”
equity interest in POPS which in turn owns Dialog said.
50.01% in POES.
At Bursa onTuesday, Dialog’s share price
“As concessionaire and operator of con- fell eight sen or 3.4% to close at RM2.27 for
a market value of about RM12.82 billion.

WEDNESDAY JUNE 8, 2022 9 THEEDGE CEO MORNING BRIEF

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KUALA LUMPUR (June 7): Industrial Yew Lee Pacific gloves is slowing down and average sell-
brush manufacturerYew Lee Pacific Group closes 3.6% higher ing prices are on a decline, Ang said orders
Bhd (YLPG) closed at 29 sen on its ACE on ACE Market from its glove clients had remained stable.
Market debut, one sen or 3.6% higher over
its initial public offering (IPO) price of 28 debut “Our orders remained consistent as of
sen. now. Overall, gloves are strongly related to
BY JUSTIN LIM & HAILEY CHUNG healthcare and there is always a demand.
The stock traded between 30 sen and theedgemarkets.com What we can see is that there are a number
28.5 sen throughout the day before finish- of new glove makers coming up and it is
ing at 29 sen, which translates to a market million to purchase machinery and equip- a good opportunity for us to expand our
capitalisation of about RM154.4 million. ment, and RM8.9 million for the repay- customer base,” she said.
Some 162.38 million shares were traded, ment of bank borrowings.
making it the second most-active stock on The glove industry contributed between
Bursa Malaysia on Tuesday (June 7). Another RM7.3 million will be used for 77% and 88% of the company’s top line
the construction of new warehouse facil- growth between FY18 and FY21, with the
Commenting on its debut on the ACE ities and office buildings, RM1.8 million remainder from other industries.
Market,YLPG chief operating officer and for the renovation of a new three-storey
executive director Amber Ang PohYee said office, RM4.57 million for working capital YLPG’s customers include Top Glove
the group will continue to focus on busi- requirements, and the remaining RM3.8 Corp Bhd, Hartalega Holdings Bhd,
ness growth and expansion. million for listing expenses. Careplus Group Bhd and Riverstone Hold-
ings Ltd.
“We are happy as we are now a newly Ang stated that challenges faced by the
listed company and we thank our share- company this year include fluctuation in Its revenue leapt in FY20 to RM41.97
holders for their support and faith in us. raw material prices and the increase in million from RM29.21 million in FY19,
Moving forward, we will continue to focus minimum wage to RM1,500 from May 1. and net profit doubled to RM10.38 million
on our business growth and expansion in from RM5.2 million, owing to higher sales
order to create more value for our share- “As for fluctuations in the raw materials of industrial brushes to customers within
holders,” Ang said in a virtual press con- during the beginning of the year, the chal- the rubber glove manufacturing industry
ference on Tuesday. lenge was to control the raw material pric- following the Covid-19 outbreak.
es. As for now, raw materials are stabilising
The company raised RM37.27 million at the second quarter (of this year), so we For FY21, revenue grew by 7.8% to
in total from its listing exercise, in which project improvement in the profit margins. RM45.53 million, but net profit declined
M&A Securities Holdings Bhd acted as slightly to RM10.11 million.
adviser, sponsor, underwriter and place- “The next challenge is to increase the
ment agent. minimum wage.We hope that after the ac- Profit-after-tax margin grew from 17.8%
quisition of the new machines from the in FY19 to 24.7% in FY20 before easing
“We will be getting about RM37 mil- utilisation of proceeds, then we will reduce to 22.2% in FY21.
lion from the utilisation of proceeds and overhead costs to cut down labour,” she
most of the funds will be used to buy much said. Incorporated in 1992 in Ipoh, Perak as
more advanced machinery to upgrade our a trader of industrial hardware and ma-
machine capabilities and to produce more Even though the demand for rubber chinery parts,YLPG ventured into manu-
diverse products for our business segments facturing custom-made industrial brushes
such as semiconductors and glass manu- in 2004. It now manufactures brushes in
facturing,” she said. Perak, as well as in Padang Besar,Thailand
and Medan, Indonesia. Its industrial hard-
The company has earmarked RM10.9 ware and machinery parts manufacturing is
based in Ipoh, Perak and Klang, Selangor.

KUALA LUMPUR (June 7): Shares of Berjaya Food Berjaya Food Bhd RM
Berjaya Food Bhd closed 17 sen or 3.68% hits new share RM4.79
higher to RM4.79 onTuesday (June 7), af- 5
ter hitting a new high of RM4.89 in the first price high 4
trading session.
BY SHAZNI ONG 3
It was one of the top gainers with theedgemarkets.com RM2.05
456,000 shares traded, and at current price
of RM4.79, the Starbucks and Kenny Rog- on June 23, and said its securities would 2
er’s Roasters franchise operator has a mar- be traded and quoted as “Ex-Dividend”
ket capitalisation of RM1.87 billion. from June 7, with the last date of lodge- 1 June 7, 2022
ment on June 8. May 12, 2021
The reason for increased interest in the
stock is unclear but the company released A May 30 bourse filing showed non-ex- Source: Bloomberg
its third quarter results ended March 31, ecutive chairman Tan Sri Vincent Tan ac-
2022 (3QFY22) on May 11, which showed quired 200,000 shares in the open market, Tan currently holds a 1.398% direct
net profit more than doubled to RM31.58 having earlier on May 25 disposed of 2.5 stake or 5.04 million shares and 57.494%
million from RM11.61 million in the same million shares via a direct deal.Tan subse- indirect shareholding or 207.29 million
period last year, in tandem with a 35% jump quently acquired 111,600 shares on May shares in Berjaya Food.
in revenue to RM246 million on higher 30 and a further 18,900 shares on May 31,
same-store-sales growth, particularly from in the open market.
Starbucks cafe outlets as Covid-19 standard
operating procedures were relaxed.

Berjaya Food also declared a single-tier
third interim dividend of 1.5 sen, payable

W E D N E S D A Y J U N E 8 , 2 0 2 2 10 T H E E D G E C E O M O R N I N G B R I E F

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Najib makes another bid to adduce fresh
evidence as he seeks to nullify SRC trial

KUALA LUMPUR (June 7): Former BY TARANI PALANI Maybank board of directors’ meetings in
prime minister Datuk Seri Najib Razak has theedgemarkets.com relation to the deliberation of a RM4.17
filed another application to adduce fresh billion loan to 1MDB for the acquisition
evidence in his SRC International Sdn Bhd Sdn Bhd (PPD). The proceeds from this of Tanjong Energy.
case with the intention to nullify the trial. loan were part of the RM42 million men-
tioned in the charges against Najib. QC application to be heard
The additional evidence relates to trial simultaneously
judge Datuk Mohd Nazlan Mohd Ghaza- The statement claimed that Maybank’s Last week, Najib’s lawyers filed an appli-
li’s alleged conflict of interest as he served credit committee secretary, Fazilah Abu cation to allow a queen’s counsel (QC),
as a general counsel and company secretary Bakar, had given her statement to the Ma- British lawyer Jonathan Laidlaw, to repre-
for Maybank Group in 2006. laysian Anti-Corruption Commission that sent him in his final appeal at the Federal
Justice Nazlan was reported to regarding Court. Shafee confirmed on Tuesday that
Speaking to the press onTuesday (June the loan. the matter will come up for case manage-
7), Najib’s counsel Tan Sri Muhammad ment on June 16.
Shafee Abdullah said Justice Nazlan’s fail- “In light of this Justice Nazlan would
ure to disclose his alleged prior involve- have good suspicion that the RM42 mil- When asked which application they
ment in the matter through Maybank had lion charges against Najib had never had wanted to be heard first, Shafee said his
led to a real danger of bias. its source from the RM4 billion Retire- team was working simultaneously on both
ment Fund (Inc) (KWAP) as the source the QC application and the latest applica-
This is Najib’s second application at the was clearly the RM140 million loan from tion to adduce fresh evidence.
Federal Court to adduce fresh evidence to Maybank undertaken by PPD.
overturn his conviction in the High Court. He added that should the QC appli-
An earlier application was dismissed by “Justice Nazlan’s involvement in the cation go on first and they are successful,
the apex court on March 16. matters relating to RM140 million by PPD Laidlaw may even argue in the application
has brought [him] too close for comfort to adduce fresh evidence.
This application also comes just as the to be the judge trying the SRC case as he
Federal Court is set to hear Najib’s final is totally in conflict of interest,” read the On July 28, 2020, Justice Nazlan found
appeal on Aug 15 to 26. statement. Najib guilty in the SRC trial at the High
Court and sentenced him to 12 years in
‘Maybank played a role in SRC’s The crux of the SRC case is that Najib jail and a fine of RM210 million.
establishment’ had used his authority as the then prime
Claiming that Maybank had played a role minister and finance minister to secure The seven charges included one count
in the setting up of SRC, Shafee said Jus- RM4 billion in loans from KWAP for SRC. of abuse of power involving KWAP’s RM4
tice Nazlan’s judgement that the former billion loans to SRC, three counts of crimi-
prime minister had overarching control The press statement also claimed that nal breach of trust involving RM42 million,
over the former 1Malaysia Development Justice Nazlan had attended
Bhd (1MDB) subsidiary and “engineered” and three counts of money laundering.
the formation of SRC was contradictory. Datuk Seri The Court of Appeal on Dec 8, 2021
Najib Razak
A press statement issued by Shafee’s upheld the High Court’s decision.
firm said the firm recently became aware
that Maybank Investment Bank Bhd was
the body responsible for the proposed es-
tablishment of SRC. Maybank’s wholly
owned strategic advisory division, Bina
Fikir Sdn Bhd, was tasked with the re-
search and advisory matters pertaining to
the establishment of SRC.

The statement claimed that Justice Na-
zlan must have knowledge of Maybank’s
role in the establishment of SRC.

The alleged involvement of Maybank
through Maybank Investment and Bina
Fikir in the setting up of SRC was nev-
er brought up by the prosecution at any
point in the SRC trial and no witnesses
from these entities were called or offered
by the prosecution.

Maybank’s loan to PPD ZAHID IZZANI/THE EDGE
The statement also contended that Jus-
tice Nazlan would have knowledge about
the RM140 million loan facility given by
Maybank to Putra Perdana Development

W E D N E S D A Y J U N E 8 , 2 0 2 2 11 T H E E D G E C E O M O R N I N G B R I E F

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Husni:I said 1MDB shouldn’t invest in
PetroSaudi JV,but Najib told me‘don’t interfere’

KUALA LUMPUR (June 7): Former sec- BY AHMAD NAQIB IDRIS & TARANI PALANI retary Imran Yassin Mohd Yusof, subse-
ond finance minister Datuk Seri Ahmad theedgemarkets.com quently gathered information on 1MDB
Husni Hanadzlah testified on Tuesday — including the financial reports for the
(June 7) that he had informed ex-premier “If oil is not found, the investment will be hangus years ending March 31, 2010 to 2014, to
Datuk Seri Najib Razak that 1Malaysia (burned),” Ahmad Husni (pictured) said, adding draft a rationalisation plan for the com-
Development Bhd (1MDB) should not that such a venture should be passed to national pany.
invest in the joint venture with PetroSaudi
International Ltd as the latter was still in oil company Petronas instead. The witness said he found out that
the exploration stage. 1MDB’s debts stood at RM48.57 billion
“As Minister of Finance II, I feel that as at May 20, 2015, while its assets stood
Reading from his witness statement I had carried out my responsibility to at RM49.89 billion.
in the 1MDB-Tanore trial, he said he point out the issues in 1MDB,” he told
told Najib towards the end of 2009 that the court. He proposed two options for the ra-
PetroSaudi was still exploring for oil at tionalisation of 1MDB: either the fund
the time. He testified that in early 2015, Najib liquidates all of its productive and un-
had called him in to assist in the issues re- productive assets for a gain of RM3.3
“If oil is not found, the investment lating to the debt-laden 1MDB, although billion, or it monetises all assets except
will be hangus (burned),” he said, adding Ahmad Husni had declined to take on for its 30% stake in Edra Energy, 40%
that such a venture should be passed to the responsibility on grounds that he was stake in Tun Razak Exchange (TRX) and
national oil company Petroliam Nasional never involved with the fund. 40% stake in Bandar Malaysia.
Bhd (Petronas) instead.
“At the time, I told Datuk Seri Najib The Cabinet opted for the second
However, Ahmad Husni said Najib that I did not agree to take on the task option, he said, and had approved it in
told him to not get involved or interfere because I had never been involved in or 2015, although it would be up to 1MDB
in 1MDB matters. reported on the affairs of 1MDB, and I to execute the plan.
asked for this task to be done by a Minis-
Deputy public prosecutor Deepa Nair ter in the Prime Minister’s Department. While he was Minister of Finance II,
asked the witness how he felt after hear- he did not know of the transaction of
ing Najib’s response. “However, Datuk Seri Najib still in- monies into Najib’s personal account, and
sisted that I do it. Later, I met with the only found out about it through a state-
“I was calm but I was worried about then minister in the Prime Minister’s De- ment by the Malaysian Anti-Corruption
1MDB’s future because there was no partment Datuk Seri Wahid Omar to ask Commission, which stated that RM2.6
feasibility study. That was the standard him if he would take over, but he also billion had went into Najib’s personal
procedure. [The company] had no expe- declined,” said Ahmad Husni. AmBank account.
rience in petroleum or excavation.
He, along with his then private sec- He subsequently asked Najib about
“If no oil was found, then it would be it, and the latter said it was a donation
a loss.That was what was worrying me,” from the Saudi royal family.
Ahmad Husni told the High Court.
As the RM2.6 billion controversy grew,
As he was told to stay out of 1MDB Najib’s media officer had met with Ah-
matters, Ahmad Husni said subsequent mad Husni and gave him a statement
issues relating to the fund were not that was to be published in the papers.
brought to his attention.
“I met with Datuk Seri Najib to find
He added that whenever a 1MDB-re- out the purpose of the statement that was
lated matter was brought to the Cabinet, to be published. I told Datuk Seri Najib
he would abstain from the decision-mak- that if the statement was to address the
ing process and would not voice his opin- controversy relating to the RM2.6 billion,
ion. why not give me the transaction details.

During his testimony, he also said “As I understood it, he had returned
there were no companies under the Min- RM2 billion of the amount and had only
istry of Finance that had a board of advi- used up RM600 million,” he said, not-
sors (BoA) in its company structure, ex- ing that the RM600 million was used for
cept for 1MDB, nor were there any other corporate social responsibility purposes.
companies that were under the Prime
Minister’s Department’s supervision. However, his proposal was not exe-
cuted and he never received any further
Ahmad Husni said he was not told details on the RM2.6 billion.
why 1MDB had to be supervised by the
Prime Minister’s Office. Najib is charged with four counts of
abuse of power in enriching himself with
In August 2010, he wrote a private RM2.3 billion of 1MDB funds and 21
letter to Najib expressing his view that counts of money laundering of the same
the concerns relating to 1MDB will in- amount. He could face a fine and up to
vite controversy and could jeopardise the 20 years’ imprisonment if convicted.
government and the prime minister.
The trial resumes before Justice Datuk
However, he did not receive any re- Collin Lawrence Sequerah onWednesday.
sponse from Najib on the matter.

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W E D N E S D A Y J U N E 8 , 2 0 2 2 13 T H E E D G E C E O M O R N I N G B R I E F

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KUALA LUMPUR (June 7): Prosecution Sidek Hassan “I never asked Datuk Seri Najib or any
witnessTan Sri Mohd Sidek Hassan testi- received RM30,000 parties in 1MDB about the troubles in 1MDB
fied that he received a monthly advisory fee per month sitting because, as I understood it, 1MDB was estab-
of RM30,000 per month while he was on lished to be used as a political fund for the then
1Malaysia Development Bhd (1MDB)’s on 1MDB’s government, Barisan Nasional,” added Sidek.
board of advisors (BoA) since July 1, 2010, advisory board
despite not having to attend any meetings After wrapping up his witness statement,
or discussions related to the troubled fund. BY AHMAD NAQIB IDRIS & TARANI PALANI deputy public prosecutor Mohamad Musta-
theedgemarkets.com fa P Kunyalam asked Sidek if Najib had in-
Sidek, who was then the chief secretary formed the Cabinet of his receipt of more
to the government, received the remuner- Sidek said he was never involved in any than RM2 billion fromTanore Finance Corp.
ation up until his retirement from the civil meetings or discussions relating to 1MDB’s
service on June 23, 2012. issues or investments, nor did he receive The witness, however, said that if this
any report from the 1MDB management matter was discussed, it would have been
After his retirement, 1MDB still re- relating to the company’s operations. recorded in the meeting minutes.
tained him on the BoA with a monthly fee of
RM10,000 effective January 2013,an amount Sidek said he only found out about Besides Sidek, 1MDB’s BoA, led by Na-
he received every month until June 2015. 1MDB’s troubles through media reports jib as chairman, also includes former minis-
in newspapers and on the internet, adding ter in the prime minister’s departmentTan
The sums would be credited directly that he understands the issues are related Sri Nor Mohamed Yakcop, former chief
into his personal CIMB Bank account, he to allegations of misuse of funds. secretary to the government Tan Sri Dr
said, adding that this income was declared Ali Hamsa and former treasury secretary
to the Inland Revenue Board (IRB). He said he was made aware of the in- general Tan Sri Dr Mohd Irwan Serigar.
vestigations by local authorities such as the
The BoA was subsequently dissolved Malaysian Anti-Corruption Commission Qatar’s ex-prime minister Sheikh Ham-
on June 2, 2016. (MACC) through media reports as well. ad Jassim Jaber Al-Thani was also present
on the BoA as special advisor.
“I was never informed of the reasons “However, I was never briefed or directly
behind the dissolution of the board of told of the details of the 1MDB investiga- Sidek will be called back for cross-exam-
advisors, and I did not know why it was tion. I also confirm that Datuk Seri Najib, ination by Najib’s senior
dissolved. I never asked Datuk Seri Najib as prime minister, did not tell me about the counsel Tan Sri Mu-
[Razak] or 1MDB about the dissolution of issues at 1MDB, despite being a member of hammad Shafee Ab-
the board of advisors,” he testified, while the board of advisors of 1MDB,” he said. dullah on Wednes-
reading his witness statement. day (June 8).

However, Sidek stated that Najib did Sidek: I was never informed of the reasons behind the ZAHID IZZANI MOHD SAID/THE EDGE
ask him about his income while he was the dissolution of the board of advisors, and I did not know why
chief secretary to the government, with it was dissolved. I never asked Datuk Seri Najib [Razak] or
the then prime minister expressing that
Sidek’s income was low. 1MDB about the dissolution of the board of advisors.

“Therefore, I was under the assumption
that my appointment in 1MDB was only to
increase my income as chief secretary to the
government, which Datuk Seri Najib con-
sidered was not commensurate,” he said.

While he did receive remuneration,

KUALA LUMPUR (June 7): Business pro- AIM says country er staff were still under investigation.
cess outsourcing solutions provider Advance manager’s over- Subsequently, AIM announced on Jan
Information Marketing Bhd (AIM) said its reliance on finance
Indonesian unit country manager’s over-re- manager led to 28 that BDO had completed its first phase
liance on her finance manager had allowed perpetuation of of forensic audit report, finding the four
the perpetuation of fraudulent activities. fraudulent activities fraudsters having clearly breached the com-
pany’s policy on conflict of interest, and
“The finance manager’s wide manage- BY SHAZNI ONG anti-corruption, collusion and nepotism.
ment portfolio which encompasses both theedgemarkets.com
key finance and business administration BDO also found that the breakdown in
allowed the act of fraud more difficult to fraud and control deficiencies had been the internal control system and the possible
be detected despite the emergence of red found at Jakarta-based PTCLS, with sub- conspiracy among the fraudsters and other
flags which prevented top management sequent findings of an internal audit fur- employees within PTCLS had caused the
from addressing any shortcomings. ther confirming the employee fraud. failure to detect the fraud and contributed
to the fraudulent act.
“Lack of suitable protocols for high- In a Bursa query reply at the time, AIM
lighting irregularities further exacerbated said four staff confirmed to have been in- On June 1, AIM said BDO had com-
the situation,” AIM said in a bourse filing. volved had been terminated while two oth- pleted the second phase of comprehensive
forensic audit.
The filing was issued to highlight addition-
al information obtained via a new report is- AIM further noted that the root causes or
sued by BDO GovernanceAdvisory Sdn Bhd, factors contributing to the conduct of fraud-
the independent forensic auditor appointed ulent activity and would take the necessary
to carry out a detailed investigation into the remedial actions as recommended by BDO
Indonesian unit, PT CLS System (PTCLS). to tighten the current controls in PTCLS.

Last December, AIM said employee AIM shares’ last adjusted closing price was
10 sen,valuing the group at RM26.61 million.

W E D N E S D A Y J U N E 8 , 2 0 2 2 14 T H E E D G E C E O M O R N I N G B R I E F

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Hibiscus halts — the first RML cargo sold from LCOT Bursa
Sabah sales since Hibiscus’ completion of the acquisi- Malaysia
tax payment, tion of RML’s parent Fortuna International warn of scams
Petroleum Corp in January 2022. impersonating
cites potential its officials
disruption to ops “Crude oil that is produced from the
Kinabalu Oil Field is collected offshore and BY SULHI KHALID
BY ADAM AZIZ transported via subsea pipelines to the Sa- theedgemarkets.com
theedgemarkets.com marang Platform, and then to the LCOT,
which is located in the federal territory of KUALA LUMPUR (June 7): Bur-
KUALA LUMPUR (June 7): Hibiscus Pe- Labuan. sa Malaysia Bhd urged the public
troleum Bhd said its subsidiary REPSOL to remain vigilant of phone scams
Oil & Gas M Ltd (RML) has discontin- “No processing of RML’s crude oil [into as it has recently been made aware
ued the payment of state sales tax (SST) other products] takes place at either the Sa- of a scam where the caller fraudu-
imposed by Sabah, after its appeal against marang Platform or LCOT,” Hibiscus said. lently represents himself as a board
the tax enforcement was met with silence member of the stock exchange ask-
from the Sabah finance minister. It added that RML’s crude oil is offload- ing for a donation.
ed and sold via crude oil tankers through
RML, which has a production sharing lifting operations at the LCOT Single Buoy In a statement onTuesday (June
contract (PSC) in the Kinabalu Oil Field, Mooring (SBM), located 5km offshore 7), the regulator said it does not en-
had been making SST payment since 2020 from the LCOT facility. dorse any unlicensed activities, nor
“under protest”, said Hibiscus. would any of its board members or
“It is important to note that under the staff make such requests for dona-
Another subsidiary, SEA Hibiscus Sdn terms of the Kinabalu production sharing tions via telephone or WhatsApp
Bhd, which is the holder and operator of the contract, title to RML’s crude oil entitle- calls, text messages, or any other
2011 North Sabah Enhanced Oil Recovery ment only passes to RML upon delivery online channels.
PSC, has not been paying SST to the state at the point of export (i.e. the SBM),” it
at all, the group added in a bourse filing. added. “Bursa Malaysia strongly advis-
es those receiving such calls to be
Hibiscus said RML argued in Septem- Hibiscus said its discontinuance of the careful and not entertain invitations
ber 2020 that it sold its crude oil entitle- payment of SST under protest (in the case to ‘participate’ in such schemes or
ment from the Kinabalu Oil Field at the of RML) and non-payment of SST (in the requests for donation. If in doubt,
Labuan Crude OilTerminal (LCOT) facil- case of SEA Hibiscus) may lead to the state please contact Bursa2U at 03 –
ity “outside the sovereignty and jurisdiction authorities taking action. 2732 0067 or email bursa2u@
of the state of Sabah” and thus should not bursamalaysia.com.
be paying the SST. “It is possible that such action may cause
disruption to the group’s operations. How- “This alert is part of Bursa Ma-
As RML did not receive any reply to its ever, after due and careful consideration laysia’s ongoing public service in-
appeal for 20 months since then, Hibiscus of the position on a good faith basis, the itiative to educate members of the
said its board has resolved to discontinue board believes that its decision is reason- public against online scams,” it
the payment of SST, commencing from the able, proper and in the best interest of the said.
lifting of crude oil undertaken on May 24. company,” it added.
Meanwhile, Bursa also shared
This refers to 350,236 barrels of oil pro- In the first quarter of 2022, Hibiscus several best practices when faced
duced by RML in the Kinabalu Oil Field experienced a 45% quarter-on-quarter de- with suspicious requests:
cline in volume sold from RML, as well as • Do not reply to suspicious
a decline in average uptime in North Sa-
bah to 65%, from 75% in the immediate e-mails, text messages or calls
preceding quarter. requesting donations
• Do not click on web addresses
Shares of Hibiscus settled down one sen or emails that misrepresent an
or 0.77% to RM1.29, giving the group a authorised institution
market capitalisation of RM2.6 billion. • Verify whether the business is li-
censed, approved or authorised
by the relevant regulatory bodies
• Never share your personal de-
tails, such as your identity card
number, passwords or bank ac-
count number, and
• Report to the authorities if you
have been harassed or pressured
to make a transaction, invest-
ment or receive money deposits.

W E D N E S D A Y J U N E 8 , 2 0 2 2 15 T H E E D G E C E O M O R N I N G B R I E F

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Award is an exercise to measure the capital impressive projects income group undertaken
undertaken wholly wholly by private sector property
appreciation of properties between the property by Malaysian private
developers’ selling price and the subsequent resale developers in Malaysia.
sector property
price in secondary transactions. developers in other The Edge Malaysia-PAM Green
Excellence Award is an exercise to
countries. recognise property developments that
demonstrate sustainable design that
is innovative and outstanding while

contributing positively
to the community.

>>>NSUOWBMOIPSESNIOFNORS • Entry forms can be downloaded for free from
theedgemarkets.com and edgeprop.my.

• For enquiries, please contact Corporate Communications at
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W E D N E S D A Y J U N E 8 , 2 0 2 2 16 T H E E D G E C E O M O R N I N G B R I E F

HOME

Foreign investors buyers the previous week. Impiana Hotels
returned as net It said net outflows from them last week proposes five-
buyers last week, to-one share
summed up to RM121.4 million. consolidation,
says MIDF “Local institutions stayed as net sell-
RM150 mil
BY SURIN MURUGIAH ers for the fourth consecutive week with notes’ issuances
theedgemarkets.com RM356.1 million.
BY CHESTER TAY
KUALA LUMPUR (June 7): Foreign in- “To date, international funds have been theedgemarkets.com
vestors returned as net buyers once again net buyers for 17 out of the 22 weeks of
last week, after one week of net selling, 2022, with a total net inflow of RM7.4 bil- KUALA LUMPUR (June 7): Impiana
while buying of Malaysian equities rose to lion,” it said. Hotels Bhd has proposed to undertake
RM477.5 million (from a net outflow of a five-to-one share consolidation and
RM82.97 million). MIDF said local institutions were net issuances of redeemable convertible
sellers for only the first three days to a total notes to raise up to RM150 million,
In its weekly fund flow report onTuesday of RM426.1 million. mainly for repayment of borrowings
(June 7), the MIDF Research team said the and working capital.
previous occurrence when foreign investors “Their heaviest outflow came lastTues-
were the sole net buyers was in the week day at RM284 million. In a filing with Bursa Malaysia, the
ended May 20. group said the proposed share consol-
“They have been net sellers for 19 out of idation is undertaken due to, amongst
“Net buying from foreign investors 22 weeks this year.To date, they have sold others, the potential dilutive effect aris-
came in last Monday through Wednes- RM8.5 billion of equities,” it said. ing from the increase in the number of
day.The highest was on Tuesday where it shares resulting from the conversion
amounted to RM320.8 million, while the The research house said local retailers of the notes. It added that the exercise
lowest was on Wednesday with RM111.2 were net sellers every day of the week ex- should potentially help in reducing vol-
million. cept last Thursday, when they net bought atility in its trading price.
at RM10.5 million of equities.
“In terms of net selling by foreign in-
vestors, it came in at RM67.3 million and “They have been net buyers for 13 out
RM9.3 million last Thursday and Friday of 22 weeks of 2022.
respectively,” it said.
“Year to date, local retailers have been
Meanwhile, MIDF said local retailers net buyers at RM1.1 billion,” it said.
were net sellers once again after being net
MIDF said that in terms of participation,
all investor classes except for local retailers
showed an improvement for the week.

“Foreign investors and local institutions
saw an increase in the average daily trade
value (ADTV) by 110.3% and 24% respec-
tively.

“Meanwhile, local retailers were the
only ones that posted a decline of 2.5% in
ADTV,” it said.

KUALA LUMPUR (June 7): Global sem- Global The redeemable convertible notes
iconductor industry sales were rose 21.1% semiconductor will mature in 36 months with 2.0% in-
year-on-year in April 2022 to US$50.9 bil- sales rose 21.1% terest per annum, payable semi-annu-
lion from US$42 billion a year earlier, said y-o-y in April ally. Issued in four tranches, the notes
the US-based Semiconductor Industry As- to US$50.9 bil, will be privately placed to Advance Op-
sociation (SIA). portunities Fund and Advance Oppor-
says SIA tunities Fund 1.
In a statement on its website on Monday
(June 6), SIA said the figure was 0.7% high- BY SURIN MURUGIAH Kenanga Investment Bank Bhd has
er than the March 2022 total of US$50.6 theedgemarkets.com been appointed as the principal adviser
billion. for the proposals and lead arranger and
production and innovation occurs on U.S. facility agent for the notes’ issuances.
Monthly sales are compiled by theWorld shores,” he said.
Semiconductor Trade Statistics (WSTS) Recall that Impiana in May and De-
organization and represent a three-month SIA said sales were up compared to cember 2021 completed private place-
moving average. April 2021 in the Americas (40.9%), Eu- ments of 39 million and 150 million
rope (19.2%), Japan (18.5%), Asia-Pacif- new shares respectively, raising a total
SIA president and CEO John Neu- ic/all others (18.1%), and China (13.3%). of RM13.07 million.
ffer said global semiconductor sales have
increased by more than 20% on a year- It said month-to-month sales increased As at June 2021, the group had ac-
to-year basis for 13 consecutive months, in the Americas (3.1%), Japan (1.6%), and cumulated losses of RM109.01 million.
indicating consistently high and growing Asia-Pacific/all others (1.2%), but fell slight-
demand for semiconductors across a range ly in China (-0.6%), and Europe (-3.3%). Impiana’s share price closed half a
of critical sectors. sen lower at three sen, giving it a mar-
ket capitalisation of RM43.33 million.
“High global chip demand will ne-
cessitate more semiconductor research,
design, and manufacturing in the years
ahead, and we urge leaders inWashington
to enact innovation and competitiveness
legislation that ensures more of this chip

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NEWS IN BRIEF

SCIB bags EPCC contract worth Klang Valley, involving 200 units of poles Former SPAN commissioner joins
RM30.8 mil Cypark board
(monopoles). The contract duration is KUALA LUMPUR (June 7): Former
KUALA LUMPUR (June 7): Sarawak National Water Services Commission
Consolidated Industries Bhd (SCIB) has from June 2022 to May 2023. — by Surin (SPAN) commissioner Datuk Dr Hasnul
bagged an engineering, procurement, Murugiah Mohamad Salleh has been appointed
construction and commissioning (EPCC) as an independent and non-executive
contract worth RM30.75 million. In director of Cypark Resources Bhd. In
a bourse filing on Tuesday (June 7), a bourse filing, Cypark said Hasnul
the firm said its unit SCIB Properties served as a commissioner of SPAN
Sdn Bhd had received a contract from for two years until September 2019
Ennova Sdn Bhd to provide project and had a hand in the restructuring
engineering services for Kuala Lumpur of the water industry in Malaysia.
City Hall’s (DBKL) integrated smart Hasnul, 65, is also a former deputy
lamp pole replacement within the director general of the Public
Works Department, and former
Reservoir Link secures two solar CapitaLand buys industrial director general of the Water Supply
rooftop projects properties from Dynaciate for Department. — by Shazni Ong
RM80 mil
KUALA LUMPUR (June 7): Reservoir Link Boustead Plantations signs
Energy Bhd has secured letters of award KUALA LUMPUR (June 7): CapitaLand RM45 mil green financing deal
(LoAs) to develop two solar rooftops Malaysia Trust has proposed to buy with China Construction Bank
totalling 9.7 megawatts. In a bourse filing industrial properties in Penang from KUALA LUMPUR (June 7): Boustead
on Tuesday (June 7), the company said Dynaciate Group Bhd for RM80 million Plantations Bhd (BPB) has sealed
it had received a LoA from Osram Opto to venture into the logistics sector. The a RM45 million green financing
Semiconductors (Malaysia) Sdn Bhd to group said the acquisition includes 5.11 agreement with China Construction
develop solar rooftops in Kulim, as well as hectares of freehold land with a single Bank (M) Bhd (CCBM) to facilitate
building integrated photovoltaic power storey warehouse annexed to a double its sustainable replanting exercise
generation facilities. The solar agreement storey office building, two single storey as part of its commitment towards
is expected to have a tenure of 25 years. detached warehouses, and other ancillary environmental, social and governance
Another rooftop solar supply agreement was buildings. CapitaLand intends to fund (ESG) efforts. BPB, one of Malaysia’s
also signed with PE Land (Penang) Sdn Bhd the acquisition with bank borrowings, major palm oil companies, seeks to
to design, construct, install, own, operate, and is expected to increase gearing to leverage financing to maximise its
and maintain a solar PV energy generating 37.2% from 35.9%, which remains below ongoing accelerated sustainable
system with a DC capacity of 1971.2 kWp on the regulatory limit of 50%. In a filing replanting programme, particularly
the rooftop of the Design Village Outlet Mall with Bursa Malaysia, the REIT said the for its plantation assets in Sabah,
in Penang. — by Surin Murugiah acquisition will enable it to gain a foothold from this year until 2024. “The green
in Malaysia’s logistics sector with sizeable financing agreement would allow
property that comes with a total net BPB to complement its ongoing
lettable area of 335,000 sq ft. Dynaciate, plantations performance improvement
on the other hand, said disposing the programme by optimising the potential
properties allowed it to monetise its of its plantation assets in Sabah,” its
investment and realise a net gain of chief executive officer (CEO) Zainal
RM19.8 million from the disposal. — by Abidin Shariff said in a statement on
Chester Tay Tuesday (June 7). According to the
statement, BPB’s debt-to-equity ratio
Dayang awarded maintenance, and will include any other work and has improved in recent years owing to
construction job at offshore oil fields services which is generally related to the its strong financial performance, with
scope of works in the contract, Dayang said gearing at 0.28 times as at March 31,
KUALA LUMPUR (June 7): Dayang in a filing with Bursa Malaysia. It added that 2022 from Dec 31, 2021’s 0.37 times.
Enterprise Holdings Bhd has won the contract is effective from May 23, 2022 — Bernama
a contract to provide maintenance, to July 12, 2023. — by Syafiqah Salim
construction and modification for the
PM8E Seligi oil fields located some 240
kilometres offshore Peninsular Malaysia.
The Sarawak-based oil and gas group said
the contract was awarded to its wholly-
owned unit Dayang Enterprise Sdn
Bhd by Enquest Petroleum Production
Malaysia Ltd. The value of the contract is
based on work orders issued by Enquest

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(June 7):TheWorld Bank cut its forecast for Stagflation that the global economy is entering a period
global economic expansion in 2022 further, danger spurs of stagflation reminiscent of the 1970s. As
warning that several years of above-average World Bank to a result, a steeper-than-anticipated policy
inflation and below-average growth lie ahead cut global growth tightening may now again be required to
with potentially destabilizing consequenc- return inflation to target — and this might
es for low- and middle-income economies. outlook trigger a hard landing.

“The world economy is again in dan- BY ANA MONTEIRO & ERIC MARTIN With emerging and developing econo-
ger,” President David Malpass said in the Bloomberg mies’ debt at multi-decade highs, “the as-
foreword of the latest edition of the lender’s sociated rise in global borrowing costs and
Global Economic Prospects report released mean real income per capita will remain exchange-rate depreciations may trigger fi-
Tuesday.“It is facing high inflation and slow below pre-Covid-19 levels in about 40% nancial crises, as it did in the early 1980s,”
growth at the same time. Even if a global of developing economies in 2023. theWorld Bank said.
recession is averted, the pain of stagflation
could persist for several years — unless ma- Central banks are battling a Here are some highlights from the report:
jor supply increases are set in motion.” worse-than-anticipated inflation surge • The US economy will likely expand 2.5%
spurred by disruptions in the supply of
The Washington-based lender reduced goods, energy and food amid lockdowns in 2022, 1.2 percentage points below the
its estimate for global growth this year to in key production hubs in China and the war prior projection due to higher energy
2.9% from a January prediction of 4.1% in Ukraine. More than 60 monetary author- prices, tighter financial conditions, and
and April’s 3.2% estimate due to a surge in ities — including the Bank of England and additional supply disruptions caused by
energy and food prices, supply disruptions the Federal Reserve — have raised interest the invasion of Ukraine.
triggered by Russia’s invasion of Ukraine rates this year, and the European Central • The bank cut the outlook for China’s
and a drive by central banks globally to in- Bank may start within months. economic expansion to 4.3% this year
crease interest rates from rock-bottom levels. due to larger-than-expected damage
Accelerating inflation and slowing growth from Covid-19 and related lockdowns.
The world economy expanded 5.7% have raised World Bank officials’ concerns • Euro-area growth is projected to slow
in 2021 after the Covid-19 pandemic trig- to 2.5%, 1.7 percentage points less than
gered the deepest global recession since seen in January.
WorldWar II. • Ukraine’s economy is set to shrink 45.1%
this year, while Russia’s may drop 8.9%.
“For many countries, recession will be The lender had forecast expansion for
hard to avoid,” Malpass said, adding that both previously.
the adverse shocks of the past two years

(June 7): Indonesia, the biggest thermal coal Indonesia and other sources, then use the cash to build
exporter, would subsidize renewable energy eyes subsidies, infrastructure, give incentives for developers
projects and open its first nuclear power plant nuclear power in or to support research.
by 2045 in a draft legislation to help it reach renewable energy
its net-zero emissions goal. Nuclear Power
bill Indonesia will set up a nuclear power assem-
The bill, which still needs approval from bly that will monitor the development and
President Joko Widodo and parliament be- BY EKO LISTIYORINI operation of atomic plants. Only state-owned
fore becoming law, seeks to lead the coun- Bloomberg companies would be allowed to build, oper-
try on a path that would both ensure all 270 ate and shut such plants.The country plans
million residents have access to power while The stipulation would follow a ban by nearby to operate its first one in 2045.
also making the country entirely reliant on Malaysia, and could hamper neighbouring
renewable energy by 2060.The draft sets out Singapore’s plan to import clean electricity. Coal Reliance
a strategic outline, with more detailed rules The focus on domestic use also applies to The bill differentiates between “renewables”
to be issued later. the coal sector, where miners will have to set — wind, solar, geothermal, hydropower, bi-
aside at least 30% of their output for local omass and a few other small technologies —
The parliament expects it to become law consumption at a ceiling price of US$70 a ton and “new energy,” which includes nuclear,
before the Group of 20 summit in November, for high-quality coal, compared with current hydrogen and several coal-based technolo-
said lawmaker Sugeng Suparwoto onTuesday. global prices around US$400 a ton. gies, while carving out room for both to aid
Funding Incentives in the transition. Indonesia is building its first
Officials have their work cut out for them, The government will give incentives, includ- coal gasification plant that will start operat-
as the nation with the world’s fourth-largest ing tax and administrative, to support new ing in 2024.
population also has one of the world’s smallest projects. It will also subsidize renewable en-
wind and solar power fleets. Investments in ergy when the cost of producing it is unable Local Impact
renewable energy is lagging at just 14% of the to compete with fossil fuels. A renewable en- The government seeks to ensure renewable
annual target as of May. Indonesia relied on ergy fund will collect money from the state energy investments would benefit surround-
fossil fuels for 86% of its electricity in 2020, budget, export taxes, carbon trading funds ing communities. Companies must prioritize
according to BloombergNEF. the use of local workers, as well as domesti-
cally-sourced materials, while investors are
Here are a few key issues in the latest draft expected to transfer their technology to local
of the bill, which will soon be discussed by workers. Companies must also prevent pollu-
the government: tion and have recovery plans in place if their
operations lead to environmental damage.
Export Tax
Indonesia will prioritize local demand before
allowing renewable energy to be transmitted
overseas, with exporters required to pay a tax.

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SYDNEY (June 7): Australia’s central Australia’s that, in the near term, inflation is likely
bank on Tuesday raised interest rates by central bank to be higher than was expected a month
the most in 22 years and flagged more raises rates by ago,” said Lowe.
tightening to come as it battles to restrain 50bps in hawkish
surging inflation, stunning markets and In just his third week in office,Treas-
sending bond yields flying. surprise urer Jim Chalmers warned Australians
inflation would get worse before it got
Wrapping up its June policy meeting, BY WAYNE COLE better and to brace for a “difficult and
the Reserve Bank of Australia (RBA) lifted Reuters expensive” winter.
its cash rate by 50 basis points to 0.85%,
wrong footing investors who had wagered “The door is open to further 50bp hikes Chalmers promised some cost-of-liv-
on a move of either 25 or 40 basis points. with inflation pretty much the sole focus, ing relief would be included in a budget
similar to the front-loading of hikes we have due in October, centred on child care and
“Given the current inflation pressures seen by other central banks,” said Alvin health.The Labor government ousted the
in the economy, and the still very low lev- Tan, an analyst at RBC Capital Markets. Liberal-National coalition in an election
el of interest rates, the Board decided to in late May, inheriting almost A$1 trillion
move by 50 basis points today,” said RBA “The RBA looks to be firmly in that (US$718.70 billion) in debt and endless
Governor Philip Lowe in a statement. mode now as it heads towards neutral budget deficits.
sooner rather than later.”
“The Board expects to take further With inflation looking set to stay high for
steps in the process of normalising mon- Lowe in the past has said “neutral” for longer, investors are wagering the RBA will
etary conditions over the months ahead.” rates could be around 2.5%. have to raise rates to near 3% by the end
Hard winter ahead of the year making it easily one of the most
The central bank had already lifted rates Consumer price inflation had already hit aggressive tightening campaigns on record.
by a quarter point in May, the first increase a 20-year peak of 5.1% in the first quarter
since 2010, and many had thought it would and could approach 6% this quarter amid Most economists had doubted rates
stick to quarter-point moves.The last time rising costs for energy, food, rents and home would rise that far given house-hunting
it hiked by more was in early 2000. building. Australians are sitting on A$2 trillion in
mortgage debt making them very sensitive
Investors initially sent the local dollar up “Higher prices for electricity and gas to borrowing costs.
half a cent to as far as US$0.7248, where it and recent increases in petrol prices mean
ran into profit-taking. Bonds took a beating House prices have already begun to slip
as three-year yields shot up 16 basis points in Sydney and Melbourne following a stel-
to 3.27%, levels not seen since early 2012. lar run in 2021, and consumer sentiment
is back to the depths of the pandemic.
Futures shifted to price in the real risk Read also:Yellen faces grilling in Congress
of another 50 basis point rise in July and over ‘wrong’ inflation forecast Click here
rates around 1.5% by August following the
release of inflation figures for the second
quarter, which are expected to be red-hot.

Garuda Indonesia
eyes rights issue
after deal with

creditors

BY HARRY SUHARTONO
Bloomberg

(June 7): PT Garuda Indonesia plans to billion restructuring plan later this month. itors within the 270-day limit stipulated by
raise money via a two-stage rights issue as The debt restructuring of the “techni- law would put Garuda in liquidation.That
the indebted airline looks to salvage itself. could hurt the country’s tourism industry.
cally bankrupt” carrier is becoming a test
After the carrier and its creditors come of how far Indonesia’s government will Garuda is running on roughly 20% of
to agreement on its debt, the Indonesian go to rescue a state-owned company. Like its pre-pandemic fleet, curbing its ability
government will inject 7.5 trillion rupiah many airlines, its business suffered due to to generate operating income.
(US$520 million or about RM2.28 bil- the Covid-19 pandemic.
lion) via a first rights issue, Deputy Min- Wirjoatmodjo said the second rights of-
ister of State-Owned Enterprises Kartika Garuda said earlier in the year that it fering will be conducted early in the fourth
Wirjoatmodjo told a parliamentary hearing wanted investors to take a haircut of 81 quarter to allow strategic investors to buy a
on Tuesday (June 7). cents on the dollar for their debt. stake in the carrier.The government plans
to keep a 51% share, he said.
The announcement comes just days be- Failure to reach an agreement with cred-
fore a scheduled key meeting in Jakarta to
decide how much of a haircut gets imposed
on holders of its debt. Creditors are then
expected to vote on the carrier’s US$9.8

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BOJ’s Kuroda stand how the public feel” about price rises. REUTERS
faces heat for “It deviates somewhat from reality,”
saying people Yang Jiechi
are beginning to Trade Minister Koichi Hagiuda was quot-
accept price rises ed by the Kyodo news agency as telling China’s top
reporters when asked about Kuroda’s diplomat
BY LEIKA KIHARA & DANIEL LEUSSINK comments. says new, old
Reuters China-Japan
They came at a sensitive time for Prime problems
REUTERS Minister Fumio Kishida’s administration, intertwined
which faces growing calls to deal with ris-
TOKYO (June 7): Bank of Japan (BOJ) ing fuel and food costs ahead of an upper BY LIZ LEE
governor Haruhiko Kuroda faced politi- house election next month. Reuters
cal heat on Tuesday (June 7) for a remark
a day earlier that households are becoming The remark also drew a flurry of crit- BEIJING (June 7): Old problems
more accepting of price rises, underscor- icism on social media, with many people in China-Japan relations are in-
ing public sensitivity to rising living costs. using the hashtag “we can’t accept price tertwined with new ones, and the
increases” to share their comments. challenges cannot be ignored if the
Opposition lawmaker Kenji Katsube, countries wish to have a “healthy”
one of several politicians who questioned “We’re buying goods because they are relationship, China’s top diplomat
Kuroda in Parliament, said the remark daily necessities not because we’re accept- said on Tuesday.
showed how the governor “did not under- ing” higher prices, wrote one user. “Every-
one is under pain.” A foreign ministry statement said
Yang Jiechi, who spoke with Japa-
Another wrote: “Only wealthy people nese national security chief Takeo
like you were able to save during the coro- Akiba on the phone, said both na-
navirus pandemic.” tions should “grasp the right direc-
tion, uphold win-win cooperation,
While conceding the wording may have focus on the long term, enhance
been inappropriate, Kuroda said onTues- security, and build mutual trust”.
day the remark was made in the context of
explaining the need for wages to grow more. Yang, the director of the Cen-
tral Foreign Affairs Commission
“We aren’t just aiming to raise prices.We Office for China, said both coun-
instead want to create a positive cycle where tries should work together to en-
prices rise in tandem with stronger wage sure “stable, healthy, and resilient”
growth and economic activity,” he said. relations in the next 50 years, and
“jointly maintain regional peace and
Japan’s core consumer prices were 2.1% prosperity”.
higher in April than a year earlier, exceed-
ing the BOJ’s inflation target for the first This year marks the 50th anni-
time in seven years, due largely to rising versary of diplomatic relations for
fuel and food prices. China and Japan.

BOJ officials have repeatedly said such Relations between both nations
cost-push inflation will be temporary and not have grown tense, with Japan scram-
trigger a withdrawal of monetary stimulus. bling jets after Chinese and Russian
warplanes neared its airspace last
TOKYO (June 7):The owner of Japanese Uniqlo owner to month as Tokyo hosted leaders of
clothing brand Uniqlo said on Tuesday it raise prices on the Quad grouping, and long-time
will raise prices on some goods this fall, fleece products concerns over a Chinese invasion
reflecting increasing cost pressures from due to weak yen of Taiwan.
the weak yen and logistical hurdles.
BY CHANG-RAN KIM & ROCKY SWIFT
Prices on fleece goods and down jack- Reuters
ets in the fall/winter product lines will go
up by ¥1,000 (US$7.54), a spokesperson REUTERS
confirmed, after an earlier report by the
Jiji news service. The company is also
increasing the use of recycled polyester
in its fleece products to keep costs down.

Consumer prices are surging in Japan
after decades of deflation, driven by the
yen’s drop to a 20-year low against the
dollar and soaring energy costs.

Fast Retailing has competed on low-
cost basics like socks and underwear for
decades, but its executives have warned
recently that rising production costs
would necessitate price hikes.

Founder TadashiYanai in April railed
against the decline in Japan’s currency,
saying there was “absolutely no merit”
in a weak yen.

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Citigroup to hire not disclose the existing headcount for Thai PM says
3,000 in Asia the business. central bank has
institutional agreed to keep
“That gives you a sense that the mag- policy rate steady
banking business nitude of the set of investment we’re talk-
in growth push — ing about both from a people perspective, BY PANARAT THEPGUMPANAT
Asia-Pacific CEO and from a capital perspective, it is very & ORATHAI SIRING
significant,” Babej said. Reuters

Last year, Citi created a single wealth REUTERS
management business, to deliver servic-
es to clients from the affluent segment as Prayuth Chan-ocha
well as ultra-high-net-worth individuals.
The Asia wealth business is also centered BANGKOK (June 7): Thailand’s
around hubs in Singapore and Hong Kong. central bank has told the finance min-
istry that it will keep its policy rate at
BY SCOTT MURDOCH & SELENA LI ‘Importance of China’ the current level to support the econ-
Reuters Wealth managers at the big global banks omy, Prime Minister Prayuth Chan-
were tempering their expectations for Asia, ocha told reporters onTuesday.
HONG KONG (June 7): Citigroup Inc after China’s regulatory crackdown and
plans to hire around 3,000 new staff for Covid-19-driven slowdown helped push Prayuth also said the finance
its institutional business in Asia in the next clients to the sidelines, bankers and ana- ministry, central bank, commer-
couple of years, sharpening its focus in a lysts told Reuters last month. cial banks, and the private sector
fast-growing region where it has exited in Thailand needed to do more to
consumer banking, its Asia-Pacific chief “As global growth slows down, Asia keep inflation in check.
executive officer (CEO) said. slows down as well, but the relative growth
is still higher than most other places in the “We have to find a way to solve the
The previously unreported staff ex- world,” said Babej. [inflation] issue... but it also depends
pansion plans underline Citi’s ambition on the external situation,” he said.
to make institutional banking and wealth “And that growth, which translates into
management engines of growth, seeking portfolio wealth, is one that we’re incredi- Thailand’s headline inflation rose
to bolster revenue in a region that has bly excited about, and the global solutions at a much faster pace than expected
become a battleground for global banks that we can provide for that wealth are in- in May, hitting its highest level in
looking to tap its vast economies and creasingly relevant for our Asian clients.” nearly 14 years on soaring energy
growing wealth. prices and the end of some govern-
Babej believes the wealth that has been ment support measures.
Citi’s institutional business includes in- accumulated, and continues to grow, in
vestment banking, and corporate and com- China is “very significant”, despite macro- The Bank ofThailand’s monetary
mercial banking units that provide trade economic headwinds, uncertainties around policy committee (MPC) will review
finance, cash management, payments, and Beijing’s so-called “common prosperity” policy rates on Wednesday. Its board
custody services, among others. drive, and challenges from Covid-19 con- chairman, Porametee Vimolsiri, has
trol measures. said rates are set to rise, but timing
“We’re talking about real meat on the would depend on the MPC’s view of
bones on growing our business across “Even at a lower GDP (gross domes- the economy.
Asia,” Asia-Pacific CEO Peter Babej told tic product) growth rate, it’s something
Reuters in an interview. Babej took on the that actually grows faster than it does in The MPC is widely expected to
role in 2019 and previously worked as the rest of the world,” Babej said, noting keep its key rate unchanged at a record
global head of the bank’s financial insti- the common prosperity drive’s impact on low of 0.5% onWednesday, and possi-
tutions group. clients’ international investing was hard bly for the rest of the year, to support
to predict. the recovery, a Reuters poll showed.
Citi has around US$200 billion in
wealth assets in Asia, and the bank was Even as China’s economy was expect- On Monday, Finance Minister
“on track” to grow client assets by US$150 ed to slow sharply this year due to pan- ArkhomTermpittayapaisith said fiscal
billion by 2025, a spokesman said, despite demic-induced challenges, among other and monetary policies must contin-
global economic and market uncertainties. things, the Citi Asia head said China’s eco- ue to align to ensure a full economic
nomic and geopolitical challenges would recovery and that the central bank
The bank’s expansion of Asian insti- be short-lived and would not change the should not consider raising its key rate
tutional business comes on top of plans bank’s strategy. until the economy recovers strongly.
announced last year to hire about 2,300
people by 2025 for its wealth management “We’re in China for the long term,” he
unit. said. “There are question marks in light of
the geopolitical situation and macroeco-
Citi said last year that US$7 billion in nomic situation but [in] longer term we are
capital released from divestment of con- big believers in the importance of China.”
sumer banking businesses in 13 markets,
10 of which were in Asia, would be either Babej, however, admitted that not being
returned to shareholders or invested in lu- able to travel to China due to mandatory
crative institutional banking and wealth weeks-long quarantine for inbound trav-
management units. ellers, as part of the country’s zero-Covid
approach, is a challenge for both clients
The bank’s main regional institution- and bankers of Citi.
al business is in Hong Kong and Singa-
pore, and Babej said that these two hubs “Our clients are much more willing to
would be a key focus of the 3,000 ad- work over Zoom but at the end of the day,
ditional headcount for the unit. It does especially from a private bank view, not
being able to travel is a challenge.”

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Singapore’s PM-in-waiting embodies
broader shift in finance hub

SINGAPORE (June 7): In Asia’s wealth- BY FARIS MOKHTAR & PHILIP HEIJMANS seats since the country’s founding, even as
iest nation, where the education system is Bloomberg it still remains dominant.
among the world’s best, Singapore’s prime
minister-in-waiting has appeared surpris- BLOOMBERG The best lesson Wong can learn from
ingly unassuming. Goh is to “be his own man” and not try
across as a leader who is comfortable with to copy or rebel against his predecessor,
Born to a roofing sales executive, Law- emoting and personable,” he said, adding according to Peh Shing Huei, author of
rence Wong — named a deputy prime that “we can expect him to be tough when two biographies of Goh and a former ed-
minister in a cabinet reshuffle on Mon- the situation calls for it”. itor of the Straits Times, Singapore’s main
day — chose to attend a public university newspaper. At the same time, he added,
in the US for undergraduate studies under In his first press conference in April Wong is more likely to uphold the status
a government scholarship.The 49-year-old after being designated as the head of the quo rather than make a “dramatic change”
didn’t immediately make it into the elite so-called fourth generation of leaders, or to the party that has ruled Singapore un-
administrative service — known as a breed- 4G, Wong said he’s “always been realis- interrupted since its founding.
ing ground for future leaders — though tic” about his own abilities and strengths,
he was accepted later after working as a adding that he “never hankered for post, “His colleagues chose him because he
civil servant, according to people familiar position or power”. has shown himself to be a steady pair of
with the matter. hands during the pandemic,” Peh said.
Wong’s rise is similar to that of former “The 4G did not choose Mr Wong be-
As education minister years later,Wong prime minister Goh ChokTong, who suc- cause they thought there was something
urged students not to obsess over their ceeded Lee KuanYew. LikeWong, he also wrong with the present system which need-
grades in an official video posted onYou- wasn’t the first choice to lead: The elder ed fixing.”
Tube. “It didn’t matter then and it doesn’t Lee wrote in his book that Goh was mal-
matter now,” saidWong, who also holds a leable, saying he “would try to please you” Like the majority of Singaporeans,
master’s degree from Harvard University. and “you might get him to make some Wong was brought up in public housing
concessions”. estates. His father hailed from China, and
Several years ago, when some top mem- travelled as a teenager from the southern
bers of the ruling People’s Action Party Still, Lee KuanYew saw it as an advan- island of Hainan to British-controlled Ma-
casually asked Wong if he has any inten- tage for Goh to be chosen by his colleagues laya to help his grandfather as a chef’s as-
tion in becoming prime minister, he told rather than simply appointed for the role, sistant on the railways. In a Facebook post
them no, according to the people, who as it would give everyone a stake in his last year paying tribute to his father,Wong
asked not to be identified discussing pri- success. In a similar vein, the ruling PAP described him as part of Singapore’s “gen-
vate conversations. Although the party set- disclosed that Wong had been chosen as eration of pioneers who persevered against
tled on Heng Swee Keat back then,Wong Lee Hsien Loong’s successor by 15 out of tough odds with determination and grit”.
impressed some leaders who sawWong as 19 fourth-generation leaders following an
someone who wasn’t power hungry, they internal party consultation process. During his childhood,Wong was once
said. bound up and held at knife-point as his
Yet while Goh was largely seen as a home was ransacked by thieves — a story
Once Heng dropped out of the race, stopgap for Singapore until Lee Hsien he later recounted as education minister
Wong’s down-to-earth approach and calm Loong eventually took power, Wong is to a shocked student. He eventually went
handling of Singapore’s pandemic response heading into uncharted territory: None on to obtain a government scholarship to
helped him build trust within the PAP — of the prime minister’s four children are join the civil service, and soon found him-
and now has him positioned to become obvious potential leaders down the road. self in the Finance Ministry.
just the city-state’s fourth leader since in- And the party is coming off its worst elec-
dependence. His background and person- tion performance in terms of parliamentary Lim Siong Guan, a former permanent
ality set him apart from Singapore’s found- secretary at the ministry whomWong saw
er Lee Kuan Yew, a stern disciplinarian, as a mentor, described him as “serious, re-
as well as his son Lee Hsien Loong, who liable, thorough, questioning, imaginative,
attended Cambridge University and rose always looking out for Singapore”.
through the military ranks to become a
brigadier-general. Wong rose through the ranks until he
eventually became a principal private sec-
In many ways, Wong’s rise reflects the retary to Lee Hsien Loong, where he had
changing face of the city-state:The days of a front-row seat during the 2008 global fi-
seemingly free-wheeling, make-it-or-break- nancial crisis when the government moved
it capitalism are evolving into an increas- quickly to stabilise Singapore’s reeling
ing focus on providing a social safety net economy. That experience helped Wong
for the working class and relying less on steer the nation through the pandemic as
foreigners for higher-paying jobs. co-chair of a panel responding to Covid-19,
with his matter-of-fact approach allowing
“His style will have to be even more him to deliver difficult messages in a way
consultative as that’s what Singaporeans that built trust with the public.
want,” said Eugene Tan, a political ana- Click here for the full story
lyst and law professor at Singapore Man-
agement University. “He will likely come

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Sri Lanka President vows to finish term,
won’t run for re-election

BLOOMBERG

BY ANUSHA ONDAATJIE & SUDHI RANJAN
SEN, MARIA ELENA VIZCAINO, SYDNEY MAKI

& SHIKHAR BALWANI

Bloomberg

(June 7): President Gotabaya Rajapaksa Gotabaya Rajapaksa
vowed to finish the remaining two years in
his term despite monthslong street protests defense secretary under then-President Ma- • “We have appointed financial and legal
calling for his ouster, but won’t stand for hinda Rajapaksa, when they crushed a 30- advisers (for a debt restructure) but that is
re-election as he focuses on fixing a financial year civil war in 2009. for the capital markets. Bilaterals we have
mess that tipped Sri Lanka into its worst-ev- to go to individually; our major loans are
er economic crisis. ‘You Can’t Have a Mixed System’ from China, Japan, India and the Paris
The president reiterated his controversial Club.”
“I can’t go as a failed president,” Rajapak- goal to push through “natural agriculture,”
sa said Monday in a wide-ranging interview a short-lived move to ban chemical fertilizers • “I have requested help from India and
at his official residence in Colombo, his first that caused crop output to slump. China. I personally spoke to the leaders
with a foreign media organization since the and wrote to them.Then I have spoken
crisis unfolded. “I have been given a man- Gotabaya Rajapaksa was also skeptical to Middle Eastern leaders personally like
date for five years. I will not contest again.” about the success of a planned amendment Qatar, UAE especially, and want to speak
to the constitution, which seeks to contain to Saudi and Oman to get help for long
The defiance comes in the face of slogans the executive presidency. Cabinet is due to term contracts for supply of crude oil.”
of “Gota Go Home”, with protesters blam- approve the proposals as early as Monday,
ing Rajapaksa and his family for decisions which would rollback wide-ranging powers • “The subsidy system will have to go.We
that led to severe shortages of everything Gotabaya Rajapaksa pushed through par- cannot cut down on public servants or
from fuel to medicine, stoking inflation to liament shortly after he was elected presi- the military, we can decrease by cutting
40% and forcing a historic debt default. dent in 2019. down on recruitment.”
Thousands of demonstrators have camped
outside the president’s seaside office since A draft of the so-called 21st amendment His struggles:
mid-March, forcing him to retreat to his gives some powers back to the parliament • “It is political as a president.You know, I
barricaded official residence about a kilo- and restores independence to commissions
meter away. in key decisionmaking. am not a politician. Fortunately or unfor-
tunately people when they are in politics
The economic tailspin spiraled into po- Either the presidency should be abolished for so long you can have so much baggage,
litical turmoil with the resignation of the or the parliament is kept out of governing, you have lot of friends. Lot of people who
president’s old brother — Mahinda Rajapak- Gotabaya Rajapaksa said. want help are your supporters.When you
sa — as the nation’s prime minister, after go against this — I tried to go against this
clashes between government supporters and “You can’t have a mixed system,” he said. — you don’t get their help.”
the protesters turned bloody in May. “I experienced this and now know. People Constitutional amendment:
may blame me when I tell this but that’s • “What is this executive (powers) of the
Gotabaya Rajapaksa and his new Prime the truth.” president? My personal opinion is that if
Minister RanilWickremesinghe are seeking you have a presidency he must have full
about US$6 billion in aid over six months Here are some other highlights from the powers. Otherwise abolish executive pres-
from the International Monetary Fund interview. Rajapaksa’s comments are edited idency and go for full Westminster-style
and countries including India and China, lightly for clarity: parliament.”
Wickemesinghe told parliament on Tues-
day. Stocks plunged for a third day with the The economy: Read also: Crisis-hit Sri Lanka needs US$5b,
blue-chip S&P Sri Lanka 20 Index down • “We waited too long (to seek help from help from China for essentials Click here
3.6% as of 11:15 a.m. in ColomboTuesday.
The rupee has lost about 82% over the past the International Monetary Fund). If we
year and the nation’s debt is trading deep had gone at least six months or a year
in distressed territory. earlier, it would not have come to this
state.”
“This is unlikely to placate protesters who
are calling for his immediate resignation,”
said Patrick Curran, an economist atTellim-
er. “With presidential elections more than
two years away, Rajapaksa’s decision to see
his term through will contribute to height-
ened political uncertainty over the next cou-
ple years and could hamper reform efforts.”

The president said he wanted to replicate
his previous successful stints serving the na-
tion. Gotabaya Rajapaksa oversaw the urban
development authority and was Sri Lanka’s

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(June 7): A senior Chinese economist at a Top economist It’s unclear how the scenario Chen de-
government-run research group called on urges China to scribed would occur, given the US and oth-
authorities to seizeTaiwan Semiconductor seizeTSMC if er nations only levelled harsh economic
Manufacturing Co (TSMC) if the US hits US ramps up sanctions on Russia after it invaded Ukraine
China with sanctions on a par with those in February. Beijing claimsTaiwan as part
levelled against Russia. sanctions of its territory that must be brought under
control by force if necessary, while the gov-
“If the US and the West impose de- Bloomberg ernment in Taipei asserts it’s already a de
structive sanctions on China like sanctions facto independent nation in need of wider
against Russia, we must recover Taiwan,” strategic asset in the intensifying rivalry international recognition.
said ChenWenling, the chief economist of between the world’s two largest economies.
the China Center for International Eco- TSMC is the world’s largest contract man- Chinese President Xi Jinping has sought
nomic Exchanges. The research group is ufacturer of semiconductors, accounting to achieve tech self-sufficiency, and tapped
overseen by the National Development and for more than 50% of the global foundry economic czar Liu He to shepherd a key
Reform Commission, China’s top econom- market, which involves businesses purely initiative aimed at helping domestic chip-
ic planning agency. making chips for other companies. Its cus- makers overcome US sanctions. Those
tomers include Apple Inc, which relies on sanctions, which emerged during Donald
“Especially in the reconstruction of the Taiwanese chips for iPhones. Trump’s presidency, are impeding longer-
industrial chain and supply chain, we must term efforts by chipmakers including Hua-
seize TSMC,” Chen said in a speech last A TSMC representative declined to weiTechnologies Co’s HiSilicon and Sem-
month hosted by the Chongyang Institute comment on Chen’s remarks. Media re- iconductor Manufacturing International
for Financial Studies at Renmin University, ports have said TSMC will build six chip Corp from migrating towards more ad-
which was posted online onTuesday (June fabs in the US, but the company has an- vanced wafer fabrication technologies.
7) by nationalistic news website Guancha. nounced just one so far. It has bought more
land for possible construction. At the same time, US President Joe Bid-
“They are speeding up the transfer to en has announced plans to put US$52 bil-
the US to build six factories there,” she lion (about RM228.59 billion) into domes-
added. “We must not let all the goals of tic semiconductor research, development
the transfer be achieved.” and production as part of the administra-
tion’s broad China competition bill, which
The comments are some of the most is still awaiting approval.
prominent so far showing how Taiwan’s
chip industry is seen in Beijing as a key

(June 7): Hong Kong won’t tighten Cov- Hong Kong Still, earlier onTuesday, the South China
id-19 curbs before the city’s July 1 handover resists new virus Morning Post reported that Lam and other
anniversary, Chief Executive Carrie Lam curbs despite talk top Hong Kong officials — including her
(pic) said, despite speculation Chinese Pres- incoming replacement John Lee — were
ident Xi Jinping will attend the celebrations. of Xi visit preparing to isolate ahead of a “possible”
visit from a Chinese state leader on July
“I can say with certainty that arrival re- BY KARI LINDBERG 1, citing unidentified sources. It did not
quirements and social distancing measures Bloomberg specify which leader might visit.
will be maintained until June 30,” Lam told
a regular news briefing on Tuesday (June REUTERS The week-long, closed-loop system,
7), referencing her final day in office. “In which is still being finalised, would pre-
other words, there is no immediate need Hong Kong’s drift from the mainland’s vent officials from meeting “outsiders” and
to tighten restrictions but there won’t be Covid-19 policy has cast doubt over wheth- require them to live apart from their fami-
any relaxation,” she added. er Xi will attend celebrations marking 25 lies, according to the newspaper, which said
years of Chinese rule next month — a trip officials had been informed a month ago.
Hong Kong’s Covid-19 cases have been that would be the Chinese leader’s first
rising since the city began rolling back so- outside the mainland since travelling to Lam saidTuesday that the city is “look-
cial-distancing curbs, clocking 489 new Myanmar in January 2020 at the outset ing forward” to a visit from the country’s
infections on Tuesday.That’s set the city’s of the pandemic. leader, but cautioned that the conditions
pandemic policy on a starkly different path would need to be favourable. “I cannot tell
to Xi’s stringent zero-tolerance strategy that you more,” she added.
puts mainland cities into lockdown over a
handful of infections. Kenneth Chan, an associate professor
specialising in politics at Hong Kong Bap-
Lam said that while she’d seek expert tist University, said that while managing
advice later on Tuesday on preparing for a closed-loop system for a few thousand
a potential “sixth wave”, she didn’t want attendees would be unprecedented in the
to close schools again citing the “huge im- city, it would also be a “privilege” for lo-
pact” on children. cal officials.

“We have been in an epidemic situation “The odds are still in favour of Xi’s vis-
for over two years,” Lam said. “I believe it because he would be watched interna-
that most Hong Kong people would agree tionally, giving him a global presence and
they need to see a path to recovery.” She additional mileage to assert his supremacy
added that decisions should be made not above others preceding the 20th Congress,”
only on the basis of public health and eco- he said, referencing the Communist Party
nomic development but also “acceptability summit later this year where Xi is expect-
by the public”. ed to win a landmark third term in power.

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(June 7): Singapore Exchange Ltd, which Singapore eyes as well as real estate investment trusts and
has seen stock listings dwindle over the years, more listings blank-check companies across the globe.
is betting on a reversal in fortunes as com- as China firms “Our team actively covers, interacts with
panies in China look to hedge political risks hedge political more than 100 of these companies,” the
and Southeast Asia’s unicorns seek to tap the Singapore-based executive said.
market, according to a top executive. risk
IPO activity, which has been slammed by
The bourse may see 30 to 40 first-time BY ISHIKA MOOKERJEE this year’s market turbulence, is expected to
and secondary listings annually within the Bloomberg revive by the end of the year globally, deWin
next five years, Pol de Win, SGX’s head of said. “It’s very rare for markets to remain
global sales and origination, said in an in- may also consider different venues with the shut for three quarters in a row because at
terview — more than double the average of US tightening disclosure rules, while South- the end of the day, people need access to
about 13 listings a year since 2017. SGX is east Asia is becoming a breeding ground for liquidity,” he said.
stepping up talks with Chinese firms that tech-backed billion-dollar businesses.
are seeking alternatives to a US or Hong Here are some other comments from de
Kong listing as well as to raise their profiles These trends could help the Singapore ex- Win:
in Southeast Asia, he said. change regain some ground after missing out • The bourse isn’t yet considering a review
on big-ticket initial public offerings to other
“If some of these companies are really hubs. Stock listings have slumped in recent of a framework for listing special purpose
going to be forced to delist in the US, they years amid liquidity concerns, prompting a acquisition companies that was released
would still have an international trusted ven- government-backed effort last year to try to in 2021.This differs from the US Secu-
ue here where they can attract and interact bolster the market.The primary and second- rities and Exchange Commission, which
with the global investor universe,” said de ary listings that SGX is targeting will likely proposed increased disclosures for the ve-
Win, who joined the exchange in July from have a market value of at least S$500 mil- hicles earlier this year, prompting some
Goldman Sachs Group Inc. “Our pipeline lion (US$364 million), according to deWin. major banks to rethink their work on these
is stronger than it’s ever been in a long pe- listings
riod of time.” He said SGX is in talks with firms in Chi- • SGX is working on both rolling out an
na and Southeast Asia that operate in areas exchange-traded fund trading link with
Some global trends may work in SGX’s such as financial tech and consumer tech, Shenzhen and making a derivatives trad-
favour. More Chinese firms with US-list- ing link with India operational in the sec-
ed shares may look at alternative venues ond half of 2022
amid delisting risks stateside, following in • The introduction of derivative contracts
the footsteps of electric carmaker NIO Inc in battery metals such as cobalt metal,
that debuted in the city-state without raising cobalt hydroxide, lithium carbonate and
funds last month. Blank-check companies lithium hydroxide is still in the works

(June 7): G7 Connect Inc., a fleet man- Tencent-backed according to Zhang. A valuation for the
agement company backed by Tencent firm G7 merges combined company was not disclosed.
Holdings Ltd., has agreed to merge with
its smaller competitor E6, which counts with Alibaba- Both G7 and E6 use artificial intel-
a unit of Alibaba Group Holding Ltd. as backed E6 ligence and IoT technology to manage
an investor, bringing the two Chinese plat- freight and logistics services, with sensors
form giants together as shareholders in the BY PEI LI and cameras capturing data to optimize
combined firm. Bloomberg efficiency.They use advanced driver-assis-
tance systems to detect and warn about
Both G7 and E6 will retain their own GLP Pte, Tencent and the Alibaba-backed bad driving or insufficient space between
brands and independent operations while Cainiao Smart Logistics Network Ltd. will vehicles, and weigh cargo loads in real time
they seek synergies in areas where they over- each have roughly a 7% to 10% interest in to prevent theft.
lap, according to a press release seen by the firm, Zhang said, with any discrepancy
Bloomberg News. between the sizes of Tencent and Cainiao’s E6 serves more than 40,000 logistics
stakes within just half a percentage point. companies in sectors such as cold chain
The merger comes as G7 considers a GLP,Tencent, Cainiao and others will each storage and transportation, according to
potential initial public offering in Hong appoint representatives to the company’s an internal document seen by Bloomberg
Kong that could happen as early as this board, the release showed. News. It was founded in 2006 in Shenzhen,
year, Bloomberg News reported in April. and connects more than 2 million trucks
The company is working with advisers in- Tencent and Alibaba have largely built and 2.3 million drivers.
cluding China International Capital Corp., rigidly separate ecosystems, with few excep-
Citigroup Inc. and Morgan Stanley on the tions.Video platform Bilibili Inc. is backed Started in 2010, G7 takes its name from
proposed first-time share sale. by both giants. the G7 Beijing–Urumqi Expressway, the
world’s longest desert highway.In February,
“We decided to finish the merger before G7 had a valuation of $2.2 billion prior to it raised $200 million in a funding round
the IPO, because we have faith we can really the merger, while E6’s Internet ofThings-re- led byTrustbridge Partners and CS Capi-
change this industry,” said Jielong Zhang, lated revenue is roughly 70% that of G7’s, tal, according to a press release at the time.
chief financial officer of G7, in an interview.
“We are ready to launch any time once the In recent years, G7 has ventured into
market condition improves,” Zhang said. transaction services in areas such as settle-
ment,insurance and equipment,which now
The merged company will formally take account for more than 70% of the firm’s
on G7’s name, and its combined investors, revenue, Zhang said.

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Boris Johnson ponents accuse him of being a habitual liar Saudi Aramco
and he faces an investigation into whether promotes oil
UK PM Johnson he mislead parliament in his explanations dealers in push
seeks to rally over the series of parties held in Downing to grow trading
his party after Street — his office and residence — while
surviving Britons were following strict lockdown rules unit
leadership test during the Covid-19 pandemic.
BY ANTHONY DI PAOLA
BY WILLIAM JAMES & ANDREW MACASKILL Police have fined him over one such gath- Bloomberg
Reuters ering.
DUBAI (June 7): Saudi Aramco is
LONDON (June 7): British Prime Minister Johnson used the cabinet meeting to set promoting trading executives in a
Boris Johnson tried to shore up his leadership out his vision for the coming weeks, includ- change that underscores their grow-
onTuesday by setting out a raft of new pol- ing new policies to reduce the cost of child- ing importance to the world’s biggest
icies to ministers after he narrowly survived care and to help more people buy their own oil company.
a confidence vote that revealed the scale of homes.
the threat to his position. Ibrahim Al-Buainain has been
The prime minister plans a speech on moved up from head of trading to a
Johnson won the ballot of Conservative housing this week, he will make a speech on new position of vice president for trad-
Party lawmakers on Monday evening by 211 how to boost the economy next week and ing, sales, and supply planning, Ara-
votes to 148 — enough to avoid having to the government plans to send a first group mco said to Bloomberg. His deputy,
immediately resign but a larger-than-antic- of asylum seekers to Rwanda on June 14, as Mohammed Al-Mulhim, will take over
ipated rebellion within his party that leaves he seeks to move on from the divisive confi- as chief executive officer of Aramco
him wounded and battling to win back the dence vote, a Conservative party source said. Trading Co.
confidence of his colleagues and the gen-
eral public. In a boost to Johnson’s hopes that he can The promotions and the integration
still play a role as an international statesman, of the trading arm with marketing and
His first challenge is to convince his most Ukrainian President Volodymyr Zelenskiy shipping align Aramco more closely
senior allies, some of whom would have been welcomed his survival. with other oil majors such as BP plc
likely to run to replace him if he had been and TotalEnergies SE, who often earn
forced out, that he will be able to move on “I am very happy about it,” Zelenskiy told billions of dollars annually from deal-
from questions about his leadership. an event hosted by the FinancialTimes.“I’m ing in energy products.The shift comes
glad we haven’t lost a very important ally. as Aramco considered an initial public
Johnson thanked cabinet ministers for This is great news.” offering (IPO) of the trading unit amid
their support as he urged them to push a boom in energy prices, Bloomberg re-
through reforms to lower costs for consum- Johnson is popular in Ukraine because ported last month.
ers, businesses, and government. Britain has been quick to supply weapons,
starting with anti-tank weapons in January, Aramco declined to comment on
“We’re able now to draw a line under a month before the Russian invasion. any IPO plan and whether this move
the issues that our opponents want to talk ‘Pyrrhic victory’ is linked to such a decision.
about, and we’re able to get on with talking But William Hague, who led the Conserv-
about what I think the people in this coun- ative Party from 1997 to 2001, said John- The trading arm, known as ATC,
try want us to,” Johnson told his cabinet in son’s premiership is no longer “viable” and was created in 2011 mainly to buy and
televised remarks. he should “turn his mind to getting out” to sell fuels like gasoline and diesel. Most
provide a fresh start for the party. Hague said of its initial business involved dealing in
Lawmakers in Johnson’s party called the Johnson would find carrying on would be products from Aramco’s refineries, but
confidence vote after months of scandal over like driving down the motorway with two it has since expanded and now trades
lockdown-breaking parties at the heart of flat tyres. oil produced outside of Saudi Arabia
government and criticism of his response to too. Last month, Bloomberg reported
an inflation-fuelled surge in the cost of living. The front pages of British newspapers that it sold its first shipment of West
offered little comfort that the vote was, as African crude.
At issue is Johnson’s integrity. His op- Johnson described it in the aftermath on
Monday, a decisive result that allows him ATC has also branched into lique-
to refocus on his political priorities. fied natural gas and has offices in Lon-
don, Singapore, and the United Arab
The DailyTelegraph, Johnson’s former em- Emirates.
ployer, called the result a “hollow victory”.
Calling the result a “pyrrhic victory”, the In 2020, Al-Buainain said ATC trad-
Times leader column said the narrow win left ed around five million barrels a day of
Johnson’s political authority badly dented. crude and refined products, and wanted
to increase that to six million by 2023.
Conservative Party rules mean he is safe
from another confidence vote for the next Since its IPO in Riyadh in 2019, Ar-
12 months, but those rules could techni- amco has raised tens of billions of dol-
cally be changed if there is enough political lars selling stakes in oil- and gas-pipe-
will to do so. line businesses. It has also set up a
division to look at raising money from
In 2018, Johnson’s predecessorTheresa more asset sales.
May won a larger percentage of a similar con-
fidence vote only to resign six months later.

Read also: UK shoppers cut spending
by most since Covid lockdown in 2021
Click here

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BRUSSELS (June 7): Apple will have to BLOOMBERG “By autumn 2024, USB Type-C will
change the connector on iPhones sold in become the common charging port for all
Europe by 2024 after EU countries and EU agrees single mobile phones, tablets, and cameras in
lawmakers agreed on Tuesday to a single mobile charging the EU,” the European Parliament said
mobile charging port for mobile phones, in a statement.
tablets, and cameras in a world first. port in blow
to Apple EU industry chief Thierry Breton said
The political intervention, which the the deal would save around €250 million
European Commission said would make BY FOO YUN CHEE (US$267 million) for consumers.
life easier for consumers and save them Reuters
money, came after companies failed to “It will also allow new technologies
reach a common solution. Half the chargers sold with mobile such as wireless charging to emerge and
phones in 2018 had a USB micro-B to mature without letting innovation be-
Brussels had been pushing for a single connector, while 29% had a USB-C come a source of market fragmentation
mobile charging port for more than a dec- connector and 21% a Lightning con- and consumer inconvenience,” he said.
ade, prompted by complaints from iPhone nector, according to a 2019 Commis-
and Android users about having to switch sion study. Apple, which has warned the proposal
to different chargers for their devices. would hurt innovation and create a moun-
tain of electronic waste, did not immedi-
iPhones are charged from a Lightning ately respond to a request for comment.
cable, while Android-based devices use
USB-C connectors. “We are proud that laptops, e-readers,
earbuds, keyboards, computer mice, and
portable navigation devices are also in-
cluded,” said lawmaker Alex Agius Saliba
who steered the debate at the parliament.

Laptops will have to comply with the
legislation within 40 months of it enter-
ing into force.The EU executive will have
the power in future to harmonise wireless
charging systems.

The fact the deal also covers e-read-
ers, earbuds, and other technologies will
impact Samsung, Huawei, and other de-
vice makers.

TOKYO (June 7): Boardroom tensions at Tension at mittee, which proposed the two board can-
Japan’sToshiba Corp erupted into a public Toshiba erupts didates — from US activist hedge funds
row on Monday (June 6) as two of its ex- into public row Elliott Management and Farallon Capi-
ternal directors traded criticism over gov- tal Management — formally opposed by
ernance and the nomination of hedge fund as directors Watahiki.
executives to the conglomerate’s board. trade barbs
Zage was previously a managing direc-
The rift is the latest in a long-running BY MAKIKO YAMAZAKI tor at Farallon and remains an adviser.
crisis that has seen the management and Reuters
shareholders locked in a dispute over the “Having two directors linked to Faral-
future of the company, once one of Japan ceived a positive shareholder response. lon makes the board appear skewed to an
Inc’s prized assets. It could undermine in- He said: “It is inaccurate, incomplete activist shareholder, a specific sharehold-
vestor confidence in the board, just ahead er,”Watahiki told reporters on Monday.
of an annual general meeting. and misleading, representing a failure on
the part of the authors to consider the sub- She also said she believes that nomi-
External director Mariko Watahiki on stantial positive shareholder feedback as nation agreements struck with Elliott and
Monday took aim at her colleague Ray- well as the content of substantial discus- Farallon failed to ensure an avoidance of
mond Zage saying he raised concerns sions on the board on this matter both be- conflicts of interest while fully securing
about governance at Toshiba when he fore and after the public statement.” independence and confidentiality.
broke with the board’s stance in March
and came out in favour of a shareholder Separate company documents also Toshiba Corp onTuesday reiterated its
proposal that the company solicit buyout confirmed that Watahiki, a former High support for its slate of all 13 board direc-
offers from private equity. Court judge, had objected to two director tor candidates.
nominations supported by the board.That
Watahiki’s comments were initially came after Reuters last Friday reported that “Watahiki’s opinions represent her per-
made in an annual business report released she had objected and that the company, sonal view and do not affect the company’s
on Monday, and echoed by another exter- in a rare move, would make her objec- position of support” for the two candidates,
nal director, Katsunori Hashimoto. tions public. Toshiba board chair Satoshi Tsunakawa
said in a statement.
Zage’s move “damaged shareholder Zage also chairs the nomination com-
confidence in the board and caused con- Caught up in accounting and govern-
cerns about corporate governance”, they ance crises since 2015, Toshiba has had
were quoted as saying in the report. tussles with its activist shareholder base,
some of whom want it taken private.
Zage defended his actions in a state-
ment to Reuters, saying the criticisms were Toshiba said last week that it had re-
misleading and that his actions had re- ceived eight initial proposals to take it pri-
vate and two proposals for capital alliances
that would leave it publicly listed.

W E D N E S D A Y J U N E 8 , 2 0 2 2 28 T H E E D G E C E O M O R N I N G B R I E F

WORLD

Bitcoin falls back
below US$30,000
as range-bound
trading persists

BY JOANNA OSSINGER Most of Bitcoin’s risk-averse market. In other words, stocks and
Bloomberg pandemic gains cryptos are higher up on the risk spectrum,
came while stocks thus have sold off hand in hand,” he said.
(June 7):Bitcoin fell back below US$30,000,
sliding along with equities and settling back were closed Bespoke recently found that Bitcoin had
into the middle of the narrow range where largely tended to move higher on weekends,
it’s been trading since mid-May. BY VILDANA HAJRIC when the stock market is closed, but that
Bloomberg Monday through Friday, its intraday path
Tuesday’s 6% drop to around looks much different: It trades flat before
US$29,500 wiped out the previous three (June 7): Most everyone knows that Bitcoin the market open, but declines as soon as
days of gains and ended Bitcoin’s second had a stellar two years when the Covid-19 trading commences. Bitcoin has long been
brief break above US$31,000 of the past pandemic broke out. But just about all of a favourite of weekend traders, who can
three weeks. European equities and US the coin’s gains since then have happened often benefit from lower levels of liquidity
futures also fell. Australia’s central bank while US markets are closed. to generate bigger price swings.
delivered a bigger-than-expected rate hike
to combat rising costs, adding to the risk- A strategy that buys the coin at the eq- Analysts have been pointing out that the
off mood in markets. uity-market close — at 4pm in New York coin has moved in tandem with US equities
— and sells it at the next day’s open — at this year, meaning that on days when stocks
Investor concerns about tighter mon- 9.30am — would have yielded gains of rise, the coin tends to advance as well, and
etary policy and tougher regulations have roughly 270% going back to the start of vice versa. Both asset classes have been react-
dueled with optimism that Bitcoin may 2020, according to Jake Gordon at Bespoke ing to changes in US Federal Reserve policy.
have found a bottom to keep the token Investment Group.But doing the opposite — The central bank has been raising interest
in a tight range around US$30,000. Bit- buying it at the US market open and selling rates to cool down growth and dampen in-
coin faces “significant resistance” around it at the close — spits out negative returns. flation. The S&P 500 was up 0.2% as of
US$31,500 to US$32,000, according to 3.16pm in NewYork on Monday (June 6),
Marcus Sotiriou, an analyst at UK-based “The bulk of Bitcoin’s gains have come with Bitcoin adding 4.5% to trade around
digital asset broker GlobalBlock. outside of regular trading hours for US eq- US$31,280 (about RM137,538.16).
uities,” wrote Gordon in a note.
“This market is languishing,” said Still, the correlation to stocks may not
Adam Farthing and Collin Howe of Cryptocurrencies trade 24/7 and the strat- explain why the trend of after-hours out-
crypto liquidity provider B2C2 in a note. egy is hypothetical, an attempt to showcase performance also existed when the market
“Without a catalyst to the upside, current just how sensitive crypto markets are to was rallying over the past two years, said
sentiment is likely to keep prices range- moves in US equities. And it’s difficult to Gordon. One explanation is that the post-
bound, with some clear and immediate say why the trend might work this way, said close strategy covers a longer span of time,
risk of a break lower.” Gordon, though it appears the correlation to “meaning there is the potential for more
equities is a big factor this year. “It’s a more news/catalysts to account for”, he said.
The declines for crypto came as the
dollar extended gains. A jump in Treas- Meanwhile in 2022, a trader buying at the
ury yields late Monday fueled concerns open and selling at the close would have lost
that rising borrowing costs could induce 30%, Gordon found, while doing the oppo-
a recession. site would have meant notching a loss of 8%.

Adding to fears of tougher oversight,
US regulators are investigating whether Bi-
nance Holdings Ltd. broke securities rules
by selling digital tokens just as the crypto
exchange was getting off the ground five
years ago, Bloomberg reported on Monday.

Markets will continue to watch for sig-
nals that the current ranges — US$28,000
to US$32,750 for Bitcoin, and US$1,700
to US$2,100 for Ether — may break,B2C2
said in the note. Ether, the second-larg-
est cryptocurrency, fell as much as 7.3%
and traded at US$1,747 at 12:40 p.m. in
London.

Solana dropped as much as 11% while
Avalanche declined as much as 9.3% in a
trading session, where all the major cryp-
tocurrencies were in the red, Bloomberg
data show.

W E D N E S D A Y J U N E 8 , 2 0 2 2 29 T H E E D G E C E O M O R N I N G B R I E F

WORLD

TOKYO (June 7): Nobuyuki Idei, the Sony’s former vered by domestic rivals and South Korean
urbane former chief executive of Sony chief, who companies in televisions.
Group Corp, who spearheaded the Jap-
anese conglomerate’s push into content pushed content In 2000, Sony’s valuation was seven
but missed the shift to MP3s that led to but missed iPod times that of Apple and Ohga had con-
the iPod, died on June 2, the company wave, dies at 84 sidered a takeover of the California-based
said on Tuesday (June 7). firm during the early 1990s, Reuters has
BY SAM NUSSEY reported.
Idei, who was 84, took the helm in Reuters
1995 to drive Sony into entertainment Idei stepped down in 2005 to take re-
from hardware, but under his leadership BLOOMBERG sponsibility for slumping earnings and was
the company behind the Walkman was replaced by Britain-born Howard String-
slow to embrace MP3s and flat-panel er, who became the first foreigner to lead
TVs. the company.

Known for his charisma and frank man- The drive away from fabrication accel-
ner, Idei was hand-picked by predeces- erated after Idei’s tenure as Sony sold off
sor Norio Ohga but his push into con- loss-making hardware operations to focus
tent opened a rift between Japan-based on entertainment, such as the PlayStation
engineers and foreign movie and music games business.
executives.
“The prescience and foresight with
“When I was in charge of Sony, I was which [he] predicted the impact of the
criticised for saying we shouldn’t make internet, and engaged proactively with
panels,” Idei told Reuters in 2012. digitalisation across Sony, amazes me to
this day,” Sony chief executive Kenichiro
“But when Toyota builds cars it buys Yoshida said in a statement.
the steel from Nippon Steel.The value is
in the car, not the steel.” Idei died of liver failure. After his
departure from Sony, he had contin-
Under Idei, Sony ceded its lead in the ued to play a role in corporate Japan
portable music industry it had created to as an adviser and director on compa-
Apple, with the company also outmanoeu- ny boards.

(June 6): The family of the author whose ‘Top Gun’ heirs They said Paramount also argued
article inspired the 1986Tom Cruise movie sue Paramount that the sequel was “sufficiently com-
“Top Gun” on Monday sued Paramount over ‘Top Gun: pleted” by the time the copyright re-
Pictures for copyright infringement over verted, in a “disingenuous attempt” to
this year’s blockbuster sequel “Top Gun: Maverick’ qualify for an exception to their claim.
Maverick.” The Yonays said the sequel was com-
BY JONATHAN STEMPEL pleted in May 2021.
According to a complaint filed in Los Reuters
Angeles federal court, the Paramount Lawyers for theYonays did not imme-
Global unit failed to reacquire the rights diately respond to requests for comment.
to EhudYonay’s 1983 article “Top Guns” Reached by phone, a woman who iden-
from the family before releasing the “de- tified herself as Shosh Yonay and said
rivative” sequel. her son wasYuval declined to comment.

The lawsuit by ShoshYonay andYuval REUTERS
Yonay, who live in Israel and are respective-
ly Ehud’s widow and son, seeks unspeci- Paramount Global unit failed to reacquire the rights to Ehud Yonay’s 1983 article “Top Guns”.
fied damages, including profits from “Top
Gun: Maverick,” and to block distribution
of the movie or further sequels.

Paramount said in a statement: “These
claims are without merit, and we will de-
fend ourselves vigorously.”

“Top Gun: Maverick” is this year’s
biggest box office hit, generating $291
million in North America and $548.6
million globally in its first 10 days of
release.

But theYonays said Paramount deliber-
ately ignored how the copyright reverted
to them in January 2020, “thumbing its
nose” at federal copyright law.

TheYonays said they sent Paramount
a cease-and-desist letter on May 11,
and that in response Paramount de-
nied that the sequel derived from the
1983 article.

W E D N E S D A Y J U N E 8 , 2 0 2 2 30 T H E E D G E C E O M O R N I N G B R I E F

MARKETS

CPO RM 6,520.0067.00 OIL US$ 119.13-0.38 RM/USD 4.3947 RM/SGD 3.1934 RM/AUD 3.1584 RM/GBP 5.4921 RM/EUR 4.6915

Top 20 active stocks

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

SAPURA ENERGY BHD 204.80 -0.005 0.050 0.00 799.0

YEW LEE PACIFIC GROUP BHD 162.38 0.010 0.290 3.57% 154.4

GREEN PACKET BHD 119.30 0.005 0.075 -6.25 119.7

G3 GLOBAL BHD 111.30 0.005 0.050 -37.50 123.5

KUMPULAN JETSON BHD 53.00 0.065 0.315 50.00 84.4

YONG TAI BHD 50.60 0.000 0.090 -30.77 125.4

TOP GLOVE CORP BHD 44.90 0.010 1.250 -51.74 10,009.0

TECHNA-X BHD 41.50 -0.005 0.050 -33.33 110.7

SERBA DINAMIK HOLDINGS BHD 39.50 0.000 0.115 -67.14 426.6 World equity indices

DAGANG NEXCHANGE BHD 33.00 -0.005 0.990 30.260 3,124.7

HIBISCUS PETROLEUM BHD 25.50 -0.010 1.290 58.28 2,596.0 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE

WIDAD GROUP BHD 25.50 0.000 0.360 -1.37 990.9 (%) (%)
DOW JONES 32,915.78 16.08 0.05 INDONESIA 7,141.05 44.46 0.63
MNC WIRELESS BHD 24.10 0.000 0.015 0.000 34.3

TA WIN HOLDINGS BHD 22.30 0.000 0.105 -16.00 358.6 S&P 500 4,121.43 12.89 0.31 JAPAN 27,943.95 28.06 0.10

JADE MARVEL GROUP BHD 21.80 0.015 0.925 40.15 297.9 NASDAQ 100 12,599.63 51.60 0.41 KOREA 2,626.34 -44.31 -1.66

MY EG SERVICES BHD 20.40 0.005 0.915 -14.49 6,757.8 FTSE 100 7,605.24 -2.98 -0.04 PHILIPPINES 6,754.01 37.13 0.55

LAY HONG BHD 20.00 0.035 0.3 25 222.1 AUSTRALIA 7,095.74 -110.53 -1.53 SINGAPORE 3,231.54 4.91 0.15

JAG BHD 18.20 -0.010 0.360 7.46 222.4 CHINA 3,241.76 5.39 0.17 TAIWAN 16,512.88 -93.08 -0.56

SENTORIA GROUP BHD 15.50 0.010 0.170 -2.86 94.8 HONG KONG 21,531.67 -122.23 -0.56 THAILAND 1,631.92 -14.16 -0.86

IRIS CORP BHD 15.30 -0.005 0.165 -8.33 538.4 INDIA 55,107.34 -567.98 -1.02 VIETNAM 1,291.35 1.34 0.10

Data as compiled on Jun 7, 2022 Source: Bloomberg Data as compiled on Jun 7, 2022 Source: Bloomberg

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

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

NEXGRAM HOLDINGS BHD 0.015 50.00 147.3 50.00 66.3 PEGASUS HEIGHTS BHD 0.005 -50.00 582.3 -50.00 53.9

KUMPULAN JETSON BHD 0.315 26.00 53039.8 50.00 84.4 DGB ASIA BHD 0.015 -25.00 126.1 -50.00 25.4

CME GROUP BHD 0.050 25.00 1699.6 -16.67 49.3 EDUSPEC HOLDINGS BHD 0.020 -20.00 2,241.9 33.33 60.9

DYNACIATE GROUP BHD 0.170 21.43 11215.1 70.00 166.0 FAST ENERGY HOLDINGS BHD 0.040 -20.00 8,067.8 -57.89 29.5

JERASIA CAPITAL BHD 0.035 16.67 129.3 -78.13 2.9 BCM ALLIANCE BHD 0.025 -16.67 600.0 -16.67 50.9

JOE HOLDING BHD 0.035 16.67 8.1 0.00 107.1 SANICHI TECHNOLOGY BHD 0.025 -16.67 695.0 0.00 35.1

IQZAN HOLDING BHD 0.040 14.29 679.4 -20.00 8.9 GIIB HOLDINGS BHD 0.085 -15.00 1,286.8 -34.62 50.3

COCOALAND HOLDINGS BHD 1.460 14.06 11611.2 40.38 656.8 IMPIANA HOTELS BHD 0.030 -14.29 140.0 -60.00 43.3

HO WAH GENTING BHD 0.165 13.79 14862.0 -19.51 105.4 ALDRICH RESOURCES BHD 0.030 -14.29 21.3 -25.00 33.4

SOLUTION GROUP BHD 0.290 13.73 3792.7 -47.27 127.5 BOX-PAK MALAYSIA BHD 1.080 -13.60 9.0 -14.96 129.7

LAY HONG BHD 0.300 13.21 19973.4 25.00 222.1 TOP BUILDERS CAPITAL BHD 0.035 -12.50 1,355.3 0.00 24.7

KIM HIN INDUSTRY BHD 0.750 12.78 11.3 -13.79 105.2 EA TECHNIQUE M BHD 0.035 -12.50 240.1 -56.25 18.6

MUDAJAYA GROUP BHD 0.240 11.63 4450.9 37.14 311.5 PDZ HOLDINGS BHD 0.040 -11.11 172.8 -11.11 23.3

G3 GLOBAL BHD 0.050 11.11 111315.2 -37.50 123.5 GABUNGAN AQRS BHD 0.320 -11.11 3,982.1 -28.09 173.7

REACH ENERGY BHD 0.055 10 105.1 -8.33 60.3 SUNMOW HOLDINGS BHD 0.850 -10.53 20.0 -15.00 198.8

ARTRONIQ BHD 0.640 9.40 4862.2 4.07 203.4 SAUDEE GROUP BHD 0.050 -9.09 1,226.2 -9.09 49.6

MINDA GLOBAL BHD 0.065 8.33 7278.9 18.18 85.9 SAPURA ENERGY BHD 0.050 -9.09 204,794.4 0 799.0

AMLEX HOLDINGS BHD 0.400 8.11 465.0 14.29 107.2 TECHNA-X BHD 0.050 -9.09 41,527.3 -33.33 110.7

KUMPULAN FIMA BHD 2.730 7.91 1176.8 33.17 753.7 EKSONS CORP BHD 0.575 -8.73 18.0 -11.54 91.9

SAPURA RESOURCES BHD 0.285 7.55 22.0 -27.85 39.8 CWG HOLDINGS BHD 0.320 -8.57 255.0 -30.43 52.4

Data as compiled on Jun 7, 2022 Source: Bloomberg Data as compiled on Jun 7, 2022 Source: Bloomberg

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

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

NESTLE MALAYSIA BHD 133.80 0.700 70.3 -0.30 31376.1 KUALA LUMPUR KEPONG BHD 25.460 -0.540 1905.1 16.90 27449.9

AJINOMOTO MALAYSIA BHD 12.96 0.260 15.2 -15.84 787.9 MALAYSIAN PACIFIC INDUSTRIES 33.100 -0.400 176.3 -32.94 6583.5

CHIN TECK PLANTATIONS BHD 9.70 0.250 58.5 37.59 886.2 HEINEKEN MALAYSIA BHD 24.500 -0.220 271.7 17.56 7401.4

PPB GROUP BHD 16.56 0.240 498.1 -3.16 23558.3 PETRON MALAYSIA REFINING 7.170 -0.220 2439.6 63.70 1935.9

IMASPRO CORP BHD 3.80 0.210 35.9 53.23 304.0 PETRONAS DAGANGAN BHD 21.640 -0.220 335.0 5.05 21498.3

KUMPULAN FIMA BHD 2.73 0.200 1176.8 33.17 753.7 SIME DARBY PLANTATION BHD 4.700 -0.210 7268.8 25.00 32503.9

COCOALAND HOLDINGS BHD 1.46 0.180 11611.2 40.38 656.8 FRASER & NEAVE HOLDINGS BHD 19.800 -0.200 739.2 -19.97 7262.2

ORIENTAL HOLDINGS BHD 7.87 0.180 690.7 49.90 4882.2 PRESS METAL ALUMINIUM 5.180 -0.180 6414.9 -10.38 42681.2

BERJAYA FOOD BHD 4.79 0.165 456 122.79 1727.0 BOX-PAK MALAYSIA BHD 1.080 -0.170 9.0 -14.96 129.7

BONIA CORP BHD 2.72 0.160 1398.1 183.50 545.1 MALAYSIA SMELTING CORP BHD 3.460 -0.170 1134.4 6.46 1453.2

PANASONIC MANUFACTURING 27.44 0.160 2.3 -5.05 1666.9 SAM ENGINEERING & EQUIPMENT 4.010 -0.170 85.9 -28.39 2171.0

HONG LEONG BANK BHD 21.12 0.160 1477.6 13.43 45782.2 PENTAMASTER CORP BHD 3.800 -0.160 1504.1 -31.53 2703.0

PADINI HOLDINGS BHD 3.60 0.150 1543.4 28.57 2368.5 YNH PROPERTY BHD 3.250 -0.140 64.2 22.64 1717.6

MISC BHD 7.35 0.150 3992.7 4.26 32808.5 PETRONAS CHEMICALS GROUP BHD 9.860 -0.130 5332.5 10.54 78880.0

RAPID SYNERGY BHD 11.96 0.100 36.2 20.20 1278.5 SCIENTEX BHD 3.630 -0.130 707.6 -24.22 5630.1

UNITED MALACCA BHD 5.60 0.100 27.9 8.53 1174.7 FRONTKEN CORP BHD 2.700 -0.130 1162.6 -32.50 4245.5

TA ANN HOLDINGS BHD 5.10 0.090 1175.9 45.30 2246.4 MUDA HOLDINGS BHD 2.100 -0.120 123.2 -23.91 640.6

KIM HIN INDUSTRY BHD 0.75 0.085 11.3 -13.79 105.2 AEON CREDIT SERVICE M BHD 14.740 -0.120 91.0 8.22 3763.2

TEXCHEM RESOURCES BHD 3.88 0.080 1481.1 234.48 456.3 TONG HERR RESOURCES BHD 2.960 -0.110 50.4 1.72 454.4

FAR EAST HOLDINGS BHD 3.80 0.080 39.0 28.81 2256.6 SUNMOW HOLDINGS BHD 0.850 -0.100 20 -15.00 198.8

Data as compiled on Jun 7, 2022 Source: Bloomberg Data as compiled on Jun 7, 2022 Source: Bloomberg