TheEdge+Sun-191223

CEOMorningBrief TUESDAY, DECEMBER 19, 2023 ISSUE 688/2023 theedgemalaysia.com THAILAND PLANS GLOBAL BIDDING FOR US$29 BIL LANDBRIDGE PROJECT TO HELP BYPASS MALACCA STRAIT p16 HOME: APB Resources buys 10.41% stake in Globetronics for RM140 mil cash p3 Supermax names founders’ nephew CK Tan as CEO in board reshuffle p4 Govt to retain special share in DNB after put option to sell entire stake to MNOs, says Fahmi p6 Chinese firms look to Malaysia for assembly of high-end chips, sources say p10 WORLD: Hong Kong comeback story turns into terrible year for investors p20 Report on Page 3. Scoop buys out Apollo’s controlling shareholders with RM238 mil cash, triggers MGO Report on Page 2. Minister says no plan for MCO while Covid-19 cases surge past 20,000

tuesday december 19, 2023 2 The E dge C E O m o rning brief published by ( 2 6 6 9 8 0 - X ) tel . 603-77218000 Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810, Petaling Jaya, Selangor, Malaysia publisher + ceo . Ho Kay Tat editor-in-chief . Kathy Fong chief commercial officer . Sharon Teh chief operating officer . Lim Shiew Yuin editors . Jenny Ng . Tan Choe Choe Lam Jian Wyn to contact editors: [email protected] to advertise: [email protected] the edge ceo morning brief Read from desktop or mobile device. You can print in A4 to read. Set print mode to fit or shrink oversize page. to get on emailing list [email protected] Minister says no plan for MCO while Covid-19 cases surge past 20,000 Local white rice shortage easing — Mat Sabu PUTRAJAYA (Dec 18): The Health Ministry has assured that there is no plan to reimplement any movement restrictions on Malaysians, even as the number of Covid-19 cases in Malaysia is rising rapidly from week to week. The country recorded 20,696 cases last week (Dec 10-Dec 16), up 62.2% from 12,757 cases in the prior week (Dec 3 to 9), which was in turn about double the 6,796 cases posted for the week before that (Nov 26 to Dec 2). The bulk (97%) of the latest reported cases had little or no symptoms (Categories 1 & 2). Only 3% were serious cases (Categories 3 to 5). Category 3 are patients with pneumonia; category 4 are patients with pneumonia and require supplemental oxygen, while category 5 are those critically ill with multiple organs affected. Categories 4 and 5 are clinically defined as severe cases. About 20,068 or 97.1% involved locals, while 609 or 2.9% involved foreigners, Health Minister Datuk Seri Dr Dzulkefly Ahmad told a press conference on Monday, adding that 19 of total cases were imported — of whom 18 are Malaysians who were infected abroad while one is a foreign citizen. There are currently 18 clusters reported in Malaysia. “Cases requiring treatment in the Intensive Care Unit (ICU) stood at 151 cases, of which 96 cases required ventilators with 28 reported deaths and a fatality rate of 0.1%,” Dzulkefly said. Despite the increase in reported cases, Dzulkefly assured that the current situaby Choy Nyen Yiau theedgemalaysia.com Bernama home KUALA LUMPUR (Dec 18): The year-end rice harvest by the Muda Agricultural Development Authority (Mada) has helped ease the local white rice supply shortage in the country, said Agriculture and Food Security Minister Datuk Seri Mohamad Sabu. He said however, the local rice supply in the country has not yet been fully stabilised, as consumer demand remained high. “There is still [a shortage of local white rice] but the issue has eased… our rice (self-sufficiency rate) is only 65%, this local rice is in demand because the price of imported rice is expensive,” he told reporters after visiting the AU2 Taman Keramat Community Garden here on Monday. Mada, according to Mohamad, is also in the process of replanting paddy for next year’s supply. Meanwhile, he encouraged city residents to get involved in food security efforts by opening community gardens in appropriate open spaces. Mohamad said that open spaces near residential areas could be utilised by planting cash crops such as chilli and lemongrass that would benefit the local community. He added that the government, through the Prime Minister’s Department, had allocated RM1 billion for community development projects, including agriculture. At the same time, Mohamad advised those interested in urban farming activities to obtain approval from their respective local authorities to avoid any disruption to existing infrastructure. Prime Minister Datuk Seri Anwar Ibrahim, through Budget 2024, announced an allocation of RM1 billion under the Madani Community Fund to support efforts to boost the community economy. Through the initiative, each village, longhouse and People’s Housing Project (PPR) will be allocated a maximum fund of RM100,000 to start economic projects such as handicrafts or hydroponics. tion in Malaysia is still under control and does not burden existing health facilities. The government also has no plans at this juncture to reintroduce any movement control orders (MCOs), he said. Instead, the Health Ministry has strengthened its Covid-19 Management Plan by focusing on early detection, community empowerment, health facility monitoring, effective risk communication and digitalisation through the MySejahtera app. Covid-19 spike may subside in four to six weeks Health director-general Muhammad Radzi Abu Hassan, who was also present, repeated the Health Ministry’s forecast from last week that Covid-19 cases will continue to climb amid the upcoming year-end and festive seasons. Describing the surge as a global phenomenon, Muhammad Radzi said authorities will persist in monitoring the situation, to keep it under control and to reduce cases. “Similar to previous surges, it usually ends within 4-6 weeks,” he said. Mask up and avoid crowded places Dzulkefly urged the public to adhere to preventive measures, including avoiding crowded places, and using masks in closed public areas. Those with symptoms should immediately self-assess and isolate and seek immediate medical attention if symptoms worsen. He also repeated his advice to vulnerable groups to get their booster shots, and for high-risk positive individuals to obtain the Paxlovid antiviral treatment. The ministry is also procuring a new generation of vaccines, and assured that there is still adequate stock for the vulnerable groups. “The ministry will continue to monitor the situation of Covid-19 and related variants in the country and abroad,” Dzulkefly added. Read also: Glove counters back in vogue with rising Covid-19 cases, Top Glove most active

TUESDAY DECEMBER 19, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): APB Resources Bhd is acquiring 70 million shares in Globetronics Technology Bhd, representing a 10.41% stake in the Penang-based semiconductor manufacturer, for RM140 million cash. The consideration of RM140 million or RM2 per share is a 16% premium to Globetronics’ closing share price of RM1.72 on Monday. Upon the completion of the proposed acquisition, APB Resources will emerge as the second-largest shareholder in Globetronics. In a bourse filing, APB Resources said it was acquiring the shares from General Produce Agency Sdn Bhd (6.89%, or 46.31 million shares) and Ng Kweng Chong Holdings Sdn Bhd (3.52%, or 23.69 million shares), vehicles of the Ng family that founded Globetronics, which confirms a report by The Edge weekly on Monday about the purchase. In a separate statement, the fabricator of design engineering equipment said investing in Globetronics is a strategic and timely move considering the growth of the electrical and electronics (E&E) market in Malaysia. APB Resources buys 10.41% stake in Globetronics for RM140 mil cash KUALA LUMPUR (Dec 18): Keynote Capital Sdn Bhd, controlling shareholder of Apollo Food Holdings Bhd, is confirmed to be exiting the group after Scoop Capital Sdn Bhd, the franchisee of Baskin-Robbins, proposed to acquire Keynote’s entire 51.31% stake in the confectionery maker for RM238.08 million in cash. Scoop Capital is purchasing the 41.05 million Apollo shares from Keynote — the investment vehicle of Singaporeans Liang Chiang Heng and his younger brother Liang Kim Poh — at RM5.80 per share, a 7.4% premium to the last closing price of RM5.40. According to a filing to Bursa on Monday, while Scoop Capital is obliged to extend an unconditional mandatory takeover offer to acquire all the remaining 48.49% stake in the group at RM5.80 per share, it intends to maintain the listing status of Apollo on the Main Market of Bursa Malaysia. “Accordingly, in the event that Apollo does not comply with the public spread requirement (at least 25% of shares held by public shareholders) as a result of the offer, the offeror (Scoop Capital) will, together with Apollo, explore other options of proposals within three months from the closing date or such extended timeframe as allowed by the relevant authorities, to enable compliance by Apollo with the public spread requirement,” the filing read. “As at the date of this notice, no arrangements on the above have been made,” it added. Apollo makes compound chocolates, chocolate confectionery products and layer cakes under its own “Apollo” brand for both the local and overseas markets. Based on a trailing earnings per share (EPS) of 44.02 sen, Scoop Capital’s RM5.80 per share consideration for Apollo’s shares values the company at a priceto-earnings ratio (PER) of 13.18 times. Kawan Food Bhd, which makes frozen food — ranging from paratha, spring roll, pastry, chapati, finger food, bakery and desserts — under the “Kawan”, “KG Pastry”, “Veat” and “Aman” brands, is trading at a PER of 22.34 times — based on Monday’s close of RM1.85 and a trailing EPS of 8.28 sen. Meanwhile, Hup Seng Industries Bhd, Scoop buys out Apollo’s controlling shareholders with RM238 mil cash, triggers MGO which makes biscuits under the “Cap Ping Pong” and “Hup Seng Cream Crackers”, is trading at a PER of 14.32 times — based on a closing price of 78.5 sen and a trailing EPS of 5.48 sen. Apollo said a share sale agreement has been entered between Scoop Capital and Keynote for the deal, with the share transfer to take effect via a direct transaction on Dec 19. The announcement confirms a report in The Edge last Friday (Dec 15) that Chiang Heng and Kim Poh wanted to dispose of their 51.31% stake in Apollo under Keynote. Scoop Capital — 90%-owned by Datuk Cheah See Yeong, while the remaining 10% is held by his spouse Datin Soon Gock Lan @ Soon Geok Lin — owns a 100% stake in Golden Scoop Sdn Bhd, which is the master franchisee for ice cream brand Baskin-Robbins in Malaysia and Singapore. At Apollo’s request, the counter, which climbed 49.2% year to date, was suspended from trading on Monday pending the release of the acquisition news. It will resume trading on Tuesday at 9am. Keynote’s Chiang Heng, 73, currently serves as Apollo’s executive chairman, while Kim Poh, 62, is the group’s managing director. It was reported that with the pair of brothers advancing in age, coupled with the lack of a clear succession plan, rumours were abound of their interest in exiting the group. Chiang Heng has been with Apollo since 1979 and was appointed as MD in 1996, followed by ascending to his current role in 1998. Kim Poh joined the group’s board in 1998, before assuming his MD role in 2017. Apollo, a strong household brand in Malaysia, has been listed on the local bourse since 2000. The group has been consistently profitable and a regular dividend payer over the past two decades. BY IZZUL IKRAM theedgemalaysia.com BY ANIS HAZIM theedgemalaysia.com Apollo shares up 49.2% year-to-date Dec 30, 2022 Dec 15, 2023 RM5.40 RM3.62 RM 3 4 5 6 *Apollo shares were suspended from trading on Dec 18, 2023 **Scoop Capital’s takeover offer price at RM5.80 per share Source: Bloomberg **RM5.80 CONTINUES ON PAGE 4

TUESDAY DECEMBER 19, 2023 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): Supermax Corp Bhd, which came under the spotlight recently as a strain within the Thai family resurfaced over the purchase of a private jet, has announced a new chief executive and senior executive director, Tan Chee Keong, also known as CK Tan. CK Tan is the nephew of both Supermax’s co-founders Datuk Seri Stanley Thai Kim Sim and his wife Datuk Wira Cheryl Tan Bee Geok. Chee Keong’s appointment is part of a boardroom restructure to drive synergy across the group’s operations in both Malaysia and the US, the glove maker said in a statement on Monday. He has been with the group since 2000, first as the Vice President of Aurelia Gloves, a division of Supermax Healthcare Inc, and later as CEO of Supermax Healthcare, a post which he will continue to hold. Also appointed were four new independent non-executive directors Gan Kim Khoon, Shelley Wong Phait Lee, Dr Yap Lang Ling and Yip Kit Weng. The group also appointed Tan Bow Kok, as the new chief operations officer. The slew of appointments, which will take effect from Jan 2024, came less than two weeks after Cheryl, who co-founded Supermax with Stanley, was quoted as saying in a news article that there was a need for a “balanced board with more independent directors with the right mindset to provide checks and balances” in the group to drive it forward. Her comments at the time were met coldly by Supermax’s board, which issued a statement to say that shareholders without any management role or position in the board of directors had no authority to make any official statement on the group’s behalf. Cheryl, who was once a group executive director, no longer holds any management role in the company. She and Stanley, the group’s executive chairman, have a 40.29% stake in the company, held via Supermax Holdings Sdn Bhd. Cheryl’s criticism against Supermax’s board came about eight months after her eldest daughter, Cecile Jaclyn Thai, stepped down as non-independent non-executive director in April, with Cecile claiming she had been bullied and silenced by other board members, including her father Stanley, when she tried to uphold her fiduciary duties. Her allegations were later dismissed by the Supermax board, which said they were unfounded. At the time, Cecile, 35, had opposed Stanley’s proposal to buy a new aircraft for US$47.39 million (RM210.32 million) to replace one that was acquired a year before. A month before that, Cecile’s sister, Aurelia Joie Thai, 30, also disputed the purchase of the aircraft, which she claimed resulted in attempts to remove her as director at one of Supermax’s subsidiaries. Supermax names founders’ nephew CK Tan as CEO in board reshuffle A week after Cecilia’s departure, the company’s independent non-executive director Sharon Sung Fong Fui also left the board, citing personal commitments and rising workload in another public-listed company. Another independent non-executive director who left the board a few months later was Tan Poh Chan. Appointed on July 1, Poh Chan resigned on Dec 8. In a news article published on Dec 7, Cheryl blamed the aircraft’s purchase as one of the main causes of Supermax’s continued loss for four consecutive quarters while its peers had returned to the black. Supermax, in its latest statement on Monday, said the new organisational structure and appointments are designed to further strengthen the management team to support the group’s expanded distribution and future manufacturing footprint in the US, as well as its commitment to deliver product excellence to global customers. In the same statement, Stanley said the new board appointees’ wealth of knowledge and experience in their respective fields will prove invaluable in contributing to the formation of a well-balanced and dynamic board of directors for the company. “Supermax is a progressive company continually evolving with the times and will therefore benefit from a strong board of directors with representation in various fields. “We also foresee market challenges to persist in the coming quarters, however, we are not deterred as our new organisational structure will position us well to drive the next level of growth,” he said. Shares in Supermax ended nine sen or 9.78% higher at RM1.01, valuing the glove maker at RM2.75 billion. BY IZZUL IKRAM theedgemalaysia.com “Globetronics, a key player in the EMS (electronics manufacturing services) and semiconductor sector, is well-positioned within the expanding E&E market in Malaysia. Our investment in Globetronics marks a strategic expansion into a highgrowth industry,” it said. APB Resources’ deposits, cash and cash equivalents stood at RM59.71 million as at end-September 2023. APB Resources also intends to appoint a corporate representative to the board of Globetronics to solidify the group’s commitment and partnership. “APB Resources expects to engage in equity accounting for this investment as an associate company, following a review with the group’s auditors. “This approach will allow APB Resources to recognise a share of Globetronics’ profits in line with the 10.41% equity interest,” it noted. Additionally, the group said the financial move is anticipated to boost APB Resources’ earnings and create an additional stream of income. “As the second-largest shareholder, we look forward to contributing significantly to Globetronics’ future direction and success. This acquisition is not just an expansion of our portfolio but a leap into a future of enhanced earnings potential and a stronger presence in the tech sector,” it said. Meanwhile, Globetronics said the change in its major shareholder is not expected to have any substantial or material impact on its day-to-day operations. “GTB remains committed to maintaining operational continuity and delivering consistent performance despite the change in ownership structure,” it said in a statement. In addition, the disposal exercise is contingent on securing the approval of APB Resources shareholders at an extraordinary general meeting (EGM) to be convened. Shares in APB Resources finished one sen or 0.37% lower at RM2.68, giving it a market capitalization of RM302.51 million. Meanwhile, shares in Globetronics settled eight sen or 4.44% lower at RM1.72, giving it a market value of RM1.16 billion. FROM PAGE 3 NEWSBREAK 22 corporate MALAYSIA DECEMBER 18, 2023 B Y JOSE BARROCK While happy with the climb in its share price, which hit a sixyear high, minority shareholders of ILB Group Bhd are likely to be wondering what will transpire next, given the slew of changes in the company’s shareholding. Agrobulk Holdings Sdn Bhd is currently the single-largest shareholder of the logistics fi rm, with 34.96 million shares, or a 18.5% stake. On Nov 30, Agrobulk bought 17 million ILB shares, or just under 9% equity interest, from Etern Group (HK) Co Ltd. About a week later, ILB executive vice-chairman Tee Tuan Sem sold 17.96 million shares in ILB to Agrobulk, halving his stake to slightly below 8%, from 17.48% previously. Tee, who had been the CEO since 2001, was re-designated as executive vice-chairman in January. He is the third-largest shareholder after Agrobulk and BT Invest Cap Ltd, which holds an 11.2% stake. Tee did not reply to queries from The Edge regarding the changes in shareholding. ILB’s share price soared to 76 sen — the highest level since August 2017. The stock, which is hardly traded, gained 77% since July 1 to close at 72.5 sen last Thursday. “There must be something brewing … but no one knows what Agrobulk’s plans are. It’s all a guessing game for now, but Tee is now in his 70s, so, he is likely to want to take things easy,” says a source familiar with ILB. Judging by its fi nancials, Agrobulk appears to be a bigger company than ILB. It chalked up profi t after tax of RM192.32 million for the year ended Dec 31, 2022, on revenue of RM3.36 billion. It had RM2.15 billion in total assets and RM1.28 billion in total liabilities as at end-2022. On the other hand, ILB suff ered a net loss of RM607,000 from RM42.28 million in revenue for its nine months ended Sept 30. For the corresponding period a year ago, it suff ered a net loss of RM11.12 million on revenue of RM14.26 million. ILB explained in its results announcement that the higher revenue was driven mainly by its solar-related business. Financial losses aside, the company has a relatively clean balance sheet, with a net cash position. Such entities are usually ideal takeover targets. ILB’s balance sheet as at end-September showed its cash and cash equivalents were RM26.14 million, excluding deposits of RM31.36 million with a maturity period of more than three months and a RM3.35 million deposit pledged to the banks. The company’s long-term borrowings amounted to RM19.71 million and its current liabilities were pegged at RM4.83 million. Its net asset per share was at RM1.16. Despite its relatively low debt, for the nine months in review, ILB paid RM5.43 million in fi nance costs, up from RM1.32 million a year ago. Nonetheless, the company is venturing into the solar energy industry to fuel future earnings growth. “With ILB Group’s proven track record in implementing and operating solar projects, coupled with the improved cash fl ow, we are well positioned to scale up our solar businesses to generate higher sustainable earnings for ILB Group,” it says in the results release. So, who is Agrobulk? Agrobulk’s crown jewel, in which it holds a All eyes on fertiliser group Agrobulk’s next move at ILB E APB Resources said to be buying founder’s stake in Globetronics B Y LEE WENG KHUEN T he Ng family intends to exit Globetronics Technology Bhd, a Penang-based outsourced assembly and test firm that it founded, according to sources. “Talk of the Ng family’s exit from Globetronics has been circulating in the past few months as they’re looking to cash out from the business,” says a source. The Ng family collectively owns about 8% of Globetronics, mainly held through its key entity General Produce Agency Sdn Bhd. The reason behind the divestment by the founding family is not known. APB Resources Bhd — which is involved in the fabrication of specialised design process equipment for the petrochemical, oleochemical, oil and gas, power as well as food and beverage industries — is likely to be the buyer of the equity stake, says the source. A share sale agreement is set to be signed before the year end. The block of shares is expected to fetch as much as RM2 per share. The share price of Globetronics has gained 55.2% year to date. It has been on the rise since May. The counter closed at a two-year high of RM1.80 last Friday, giving the company a market capitalisation of RM1.21 billion. Based on the RM1.80 closing price, the block of roughly 53.78 million shares is valued at RM96.8 million. The share price rally happened despite analysts’ less bullish views on the company, with a consensus target price of RM1.35, implying a downside potential of 25%. The Employees Provident Fund is the largest shareholder of Globetronics with a 14.1% stake. It is worth noting that Globetronics is one of the companies on Bursa Malaysia that the provident fund has the highest shareholding in. Other substantial shareholders of Globetronics are Ooi Keng Thye (7.19%) and Lembaga Tabung Haji (5.38%). Listed on the local bourse in 1997, Globetronics was co-founded by former executive chairman Michael Ng Kweng Chong, whose son Ng Kok Yu is the current executive chairman. Other Ng family members who sit on the board are chief fi nancial offi cer Ng Kok Choon and non-independent non-executive director Ng Kok Khuan. In the nine months ended Sept 30 (9MFY2023), Globetronics’ net earnings fell 40.4% to RM19.91 million from RM33.4 million in the previous corresponding period, owing to lower volume loadings from certain customers and lower foreign exchange gains. “The year 2023 would be a challenging one for the group, and the group is expected to experience a decline in profitability for the fi nancial year. Several factors contributing to this decline include softer revenue forecasts from our customers, the full-year tax impact of our expired pioneer status in one of the subsidiaries, the full impact of the increased minimum wage and increase in utility costs,” Globetronics said in a note accompanying its third-quarter results. After achieving a net profi t of RM70.12 million in the fi nancial year ended Dec 31, 2018 (FY2018), the company’s earnings contracted to RM45.46 million in FY2022. With the rising share price and lacklustre fi nancial performance, the stock is trading at a much higher 12-month forward price-earnings ratio of 46.8 times compared with peers such as Inari Amertron Bhd (28 times) and Malaysian Pacifi c Industries Bhd (38 times). Reiterating a “sell” call, MIDF Research has cut its target price for Globetronics to 89 sen following the group’s dismal fi nancial performance. “Despite anticipating better revenue performance in 2HFY2023, full-year FY2023 earnings would still be signifi cantly lower compared with FY2022,” the research house said in an Oct 25 note, pointing to lower utilisation rate as a result of low product demand. While the sensor division is expected to remain the key top-line contributor in FY2023 and FY2024 on the back of new smartphone models, Globetronics is in the midst of diversifying its portfolio into non-consumer products in the industrial and automotive sectors. AmInvestment Bank Research is neutral on the revenue contributions of both segments in FY2024 given the longer time required for product qualifi cation. Over at APB, the company has a cash-rich balance sheet. Its cash balance amounted to RM59.7 million against long-term borrowings of RM2.32 million and short-term debt of RM234,000. Press Metal Aluminium Holdings Bhd co-founder Datuk Koon Poh Tat emerged as the single largest shareholder of APB in June. APB’s share price has more than doubled since late April. It closed at RM2.69 last Friday, giving the company a market value of RM303.6 million. In October, APB CEO and executive director Yap Swee Sang ceased to be a substantial shareholder after disposing of fi ve million shares, or a 4.51% stake, via Ikram Pintas Sdn Bhd for RM11 million, or RM2.20 per share. He is now left with less than 1% equity interest in APB. APB recently announced plans to acquire the 16-storey Menara Serba Dinamik in Shah Alam, Selangor, for RM38 million. Agrobulk Holdings Sdn Bhd 18.5% BT Investment Capital Ltd 11.2% Tee Tuan Sem 7.97% Makoto Takahashi 7.57% Syed Abu Hussin Hafi z Syed Abdul Fasal 5.69% ILB’s substantial shareholders 81.55% stake, is Agromate Holdings Sdn Bhd, a well-known name in the plantation and agricultural industry. Other shareholders of Agromate are Ideal Force Sdn Bhd, which holds 13.45%, and AG Cap Sdn Bhd, with 5%. For its fi nancial year ended Dec 31, 2022, Agromate registered profit after tax of RM209.35 million on RM3.35 billion in revenue. As at end-2022, Agromate’s total assets stood at RM2.02 billion against total liabilities of RM1.25 billion. The company had retained earnings of RM566.19 million. Agromate was founded by the patriarch of the Tang family, the late Raymond Tang Quee Huang, in 1979. Tang & Co Sdn Bhd is the controlling shareholder of Agrobulk, with a 61.42% stake. Other substantial shareholders are Loo Tung Hua & Sons Holdings Sdn Bhd, with 11.25%; Tan Chai Swan, 6.04%; Leow Lay Lan, 4.84%; and shareholders who hold up to 1.42% each, according to the fi ling to the Companies Commission of Malaysia. At Tang & Co, the majority shareholder is Lee May Lin, with 80% equity interest, while Tang Weihann and Tang Shyaan Yng hold 10% each. Interestingly, both Weihann and Lee have the same address in Tropicana Golf & Country Resort in Petaling Jaya. Meanwhile, Tang & Co’s board member Edward Tang Ming Yng is CEO of Agromate. According to its offi cial website, Agromate has a presence in about 30 countries. Besides the recent purchase of the stake in ILB, another listed company that Agrobulk holds a substantial stake in is Sabah-based plantation fi rm Golden Land Bhd, formerly known as Tanah Emas Corp Bhd. Agrobulk bought into Golden Land 11 years ago. It is the second-largest shareholder, with a 25.39% stake, after Yap Phing Cern, who holds a 35.35% stake. Golden Land is not performing as impressively as Agromate. For its fi rst fi nancial quarter ended September, Golden Land incurred a net loss of RM6.87 million on RM23.87 million in revenue. The plantation fi rm has suff ered six straight years of losses. Will the emergence of a new substantial shareholder open a new chapter in the history of ILB, which once prospered in the bonded warehousing business in China? Minority shareholders are most likely eager to know. ILB Group Dec 15 2022 Dec 15 2023 Volume (‘000) Market cap: RM135.1 million 0 1000 2000 3000 4000 5000 6000 7000 8000 0.4 0.5 0.6 0.7 0.8 Dec 15 0.715 RM E FLASHBACK: The Edge Malaysia Dec 18, 2023

TUESDAY DECEMBER 19, 2023 5 THEEDGE CEO MORNING BRIEF

TUESDAY DECEMBER 19, 2023 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): Putrajaya will maintain its special share in Digital Nasional Bhd (DNB), the entity tasked to roll out the 5G network to achieve up to 80% populated coverage before 2023 ends, after executing a put option to divest all its shareholdings to mobile network operators (MNOs), according to Communications Minister Fahmi Fadzil. “[The special share] is still there,” he told reporters when asked about the rights of the Ministry of Finance (MOF) after exercising the put option to give up all DNB’s stake. Earlier this month, Fahmi witnessed the signing of an agreement by the MOF to divest of a 70% stake in DNB to five MNOs — CelcomDigi Bhd, Maxis Bhd, U Mobile Sdn Bhd, Telekom Malaysia Bhd and YTL Power International Bhd — with each taking up a 14% stake. Under the agreement’s initial stage, the MNOs will each provide a RM233.23 million zero interest loan to DNB, while each of them will take up a minimal 100,000 new shares for RM100,000. MOF will have a put option to sell the entire 500 million shares in DNB to the five MNOS at RM500 million, with the MNOs taking over the RM450 million advance that MOF had provided to DNB previously. In short, based on available public disclosures, the MNOs will each be paying RM100.1 million for the eventual acquisition of a 20% stake in DNB — which has invested RM16 billion in 5G network infrastructure — and a total advance of RM323.23 million. Govt will be ‘quite consultative’ As to whether the government has the power to veto decisions made by the MNOs-controlled DNB in the future, Fahmi said the government will be “quite consultative” in its dealings with MNOs. “Throughout the entire process, perhaps by being engaged in constructive dialogue, we have been able to achieve so much. Who would have thought a firstterm minister would be able to assist all of the MNOs, those that are publicly listed and have a total market cap of some RM140 billion. Yet we are able to find that BY CHESTER TAY & CHERYL TAN theedgemalaysia.com BY CHESTER TAY & CHERYL TAN theedgemalaysia.com Govt to retain special share in DNB after put option to sell entire stake to MNOs, says Fahmi middle ground and achieve so much in such a short time. “So, I believe the consultative process is key. Because at the end of the day, better communications is not only better for the rakyat, but also for commercial interests — perhaps better profits,” he said. Asked if the government had chosen to give up control of critical infrastructure to the profit-driven private sector in the DNB stake divestment case, Fahmi merely said: “I think this is a good way forward” before leaving the press conference. The initial intention under the 5G Single Wholesale Model (SWM) was to have a government-controlled entity — DNB — as the wholesaler to roll out the next-generation network nationwide, and leasing its network capacity at lower costs to MNOs, who would share the infrastructure without needing to fork out big capex outlays while focusing on competing on a level playing field to service retail customers. The transition to a dual network model (DWM), said to break DNB’s monopoly and to create redundancy to avoid a single point failure, raises the question of necessity, as network quality was not any better during the 4G era when multiple MNOs rolled out infrastructure simultaneously. Critics of the DWM have also pointed to how a similar monopolistic model has been working well in the electricity sector, a more critical utility segment, whereby there is only one national grid, which is owned and operated by the state-controlled Tenaga Nasional Bhd. Asked if the government had chosen to give up control of critical infrastructure to the profit-driven private sector in the DNB stake divestment case, Fahmi merely said: “I think this is a good way forward” before leaving the press conference. Telcos did not ignore Putrajaya’s call for 5G access fee waiver, says Fahmi KUALA LUMPUR (Dec 18): Local mobile network operators (MNOs) are not ignoring the government’s call to waive the additional fee charged on existing subscribers to access the 5G network, said Communications Minister Fahmi Fadzil. “No, they have not [ignored the government]. So, my last conversation with the CEO of CelcomDigi Bhd, for example, he informed me that just before we signed the landmark share subscription agreement (SSA) for DNB (Digital Nasional Bhd), they announced they were repackaging,” he told reporters here after launching a new television service by Ansat Broadcast Sdn Bhd on Monday. “So, they have announced their own new packages where they have done away with the additional fees. That's what CelcomDigi told me,” he added. However, a quick check on Celcom, Digi as well as Maxis' websites showed that all three telcos are still charging existing subscribers — who are on plans cheaper than RM60 — up to RM20 for each to gain access to the 5G network. The Malaysian Communications and Multimedia Commission (MCMC) has also been instructed to take action against MNOs that are still charging this additional fee, Fahmi reiterated on Monday. “With regards to the rest, I have instructed MCMC that they need to follow through and make sure that there are no more additional charges for using 5G because the entire infrastructure — up until they signed the SSA — the entire infrastructure was borne by the rakyat’s money. So there should not be additional charges,” he said. “We will have to take further action [if the MNOs continue to charge]. I have not checked [whether MNOs are still charging]. You can refer to MCMC,” he added.

TUESDAY DECEMBER 19, 2023 7 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): Local tycoon Tan Sri Vincent Tan Chee Yioun is making a second attempt at the television business, after his previous venture MiTV Corp Sdn Bhd, which incurred losses totalling RM250 million, had, in his own words, “failed miserably”. In the latest venture, Tan is getting his privately-owned U Telemedia Sdn Bhd’s subsidiary, Ansat Broadcast Sdn Bhd, to collaborate with Indonesian multinational conglomerate, PT MNC Digital Entertainment Tbk, to introduce a subscriber-based television and content distributor brand, called “OK Vision”. The new venture had its soft launch on Monday, which was also witnessed by Communications Minister Fahmi Fadzil and Malaysian Communications and Multimedia Commission chairman Tan Sri Mohamad Salim Fateh. “Many years ago, I tried to do this business under a company called MiTV. I tried to challenge Astro [Malaysia Holdings Bhd] to be the second (pay-TV services) provider. Unfortunately, it failed miserably. I lost RM250 million, and I thought I would never be in this business [again], until I met Pak Hary [MNC executive chairman Hary Tanoesoedibjo],” Tan told reporters at the event. However, he declined to reveal how much he is investing in the latest venture. Hary, meanwhile, said “this collaboration highlights our unwavering dedication in pushing boundaries and delivering cutting edge content solutions for audiences at home”. PT MNC aims to redefine the entertainment landscape by providing “unparalleled” experiences and meeting the diverse interests of audiences in Malaysia and Indonesia, he said. This is the second time PT MNC is partnering a Malaysian entity, after entering into a collaboration with Digistar Corp Bhd in January this year to provide digital content for the local hospitality and residential markets. Vincent Tan makes second attempt at TV business after MiTV ‘failed miserably’ KUALA LUMPUR (Dec 18): While the home of the Digital Nasional Bhd (DNB) — the special purpose entity set up by the government to drive the development of 5G infrastructure in Malaysia — is yet to be decided with the splitting up of the former Ministry of Communications and Digital into two, Fahmi Fadzil said the only thing digital about DNB is its name. “If you were to ask me, Digital Nasional Bhd, probably the only thing that’s digital about it is the name. It is actually an infra-co — an infrastructure company,” he told reporters here when asked whether the government has decided whether DNB comes under him or Gobind Singh Deo. Fahmi was formerly overseeing both the communications and digital portfolio under the Ministry of Communications and Digital, prior to the Dec 12 Cabinet reshuffle last week that saw the ministry being split into two. Fahmi now handles only the communications part of the portfolio as the new communications minister, while Gobind has been tasked to helm the Digital Ministry. But what exactly falls under whose purview has yet to be fully decided, following the announcement of the Cabinet rejig by Prime Minister Datuk Seri Anwar Ibrahim. Fahmi told reporters following a post-Cabinet meeting with the new lineup last week that the Malaysian Communications and Multimedia Commission (MCMC), which is in charge of the country’s network resources — spectrum allocation, comes under his ministry, while DNB remained undecided. “We have not yet finalised (on DNB), this is still under discussion. But as you know, MCMC, as an example, is a lot more about infrastructure, about spectrum, also about modes of communication. Not necessarily about digital content, not so much about that,” he said on Monday (Dec 18) after launching a new television service by Ansat Broadcast Sdn Bhd. “I think with regards to DNB, we have not finalised it yet. But at least for me, my argument is that it’s an infrastructure company,” he added. Fahmi further said telecommunication services are more a mode of communication rather than a digital enabler through network deployment. “[MCMC] is not necessarily digital per se, in that sense. One of the raison d’être of the formation of the Digital Ministry, of course, is to have increased focus on the digital economy. So, I think to that end, that’s why MDEC was moved there, naturally, MyNIC Bhd. “So, the [Digital Ministry’s] focus will be really on that ecosystem. On our side, we are still looking at it, because [MCMC] also involves telephony, for example, so we will still look into these aspects,” he said. Other agencies that will remain under the Communications Ministry are: Bernama, Institute of Broadcasting and Information Tun Abdul Razak (IPPTAR), the Information Department (JaPen), the Broadcasting Department including RTM, National Film Development Corp (Finas), and MyCreative Ventures. The Community Communications Department (J-KOM) has also been moved from the Prime Minister’s Department to the Communications Ministry. Fahmi says the only thing digital about DNB is its name BY CHERYL TAN & CHESTER TAY theedgemalaysia.com BY CHESTER TAY & CHERYL TAN theedgemalaysia.com He also refuted assertions that carving out the digital portion from his previous ministry was a reflection of his performance, and dismissed claims that he intends to keep hold of MCMC because of the agency’s power in having the final say on the lucrative spectrum allocation. CONTINUES ON PAGE 8 Communications Minister Fahmi Fadzil said, ‘I think with regards to DNB, we have not finalised it yet. But at least for me, my argument is that it’s an infrastructure company.’ SHAHRIN YAHYA/THE EDGE

TUESDAY DECEMBER 19, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): Sunway Real Estate Investment Trust’s (Sunway REIT) trustee RHB Trustees Bhd has inked a conditional sale and purchase agreement with Best Corridor Venture Sdn Bhd to acquire an industrial property in Prai, Penang, for RM66.8 million. In a statement, Sunway REIT said the property is located on land spanning 4.21 hectares with leasehold tenure expiring on Oct 22, 2052, and to be extended to 60 years after the completion of the proposed acquisition. “The property has a gross floor area of 307,487 square feet, which is fully (100%) tenanted by three reputable multinational corporations, namely the anchor tenant, Premium Sound Solutions, a Belgian sound products manufacturer, together with a Japanese logistics company and an American information management services company,” it said. It said the acquisition is projected to generate an initial net property income yield of approximately 7.6% based on the purchase consideration. “The proposed acquisition will be fully funded by Sunway REIT’s existing debt facilities and is targeted to be completed in the third quarter of 2024,” it added. Sunway REIT Management Sdn Bhd chief executive officer Clement Chen said the purchase signifies its continuous efforts to expand Sunway REIT’s footprint in the industrial segment. “This marks Sunway REIT’s second proposed acquisition in 2023 and the third industrial property in Sunway REIT’s asset portfolio. “The proposed acquisition will improve Sunway REIT’s asset portfolio mix while progressing towards our Transcend 2027 target for ‘services, industrial and others’ segments to comprise 20%-30% of property value by 2027,” he added. Sunway REIT acquires industrial property in Penang for RM66.8 mil KUALA LUMPUR (Dec 18): The Ministry of Finance (MoF) clarified on Monday that the 10% sales tax on imported low value goods sold online, which are those priced at no more than RM500 each, aims to rectify tax treatment disparities between retail and online businesses. The new tax, which will be enforced starting January next year, would establish a level playing field for businesses in Malaysia, especially the micro, small and medium enterprises (MSMEs), the MOF said in a statement. “There was a loophole in the sales tax. Globally, there is a common practice not to impose sales tax and import duty on imports below a De Minimis (minimal) value, which was set at RM500 for Malaysia, to facilitate ease of customs clearance for postal and courier shipments. “With the proliferation in online retail, this created an unfair advantage for online businesses selling directly to Malaysian consumers compared to retail businesses in Malaysia,” the ministry explained. According to the MOF, neighboring MOF: 10% tax on sale of low value imported goods online is to level playing field for local businesses ers and key stakeholders regarding implementation issues, according to the ministry. It added that the objective is to ensure that the legislation’s implementation aligns with the goal of addressing tax treatment disparities between goods sold by online and traditional retail businesses. The sales tax legislation on imported low-value goods was announced in Budget 2022 and was passed in Parliament in August 2022. The implementation of a 10% sales tax applies to goods valued at RM500 or less, imported into Malaysia through land, sea, or air. Notably, this taxation excludes specific items like cigarettes, tobacco products, intoxicating liquors, and smoking pipes, all of which are already subject to import duty, excise duty and sales tax. Online local and foreign sellers with total sales value of low value goods brought into Malaysia exceeding RM500,000 in 12 months may apply to be registered under the Sales Tax Act (Amendments) 2022 (LVG) at mylvg.customs.gov.my, the MOF added. BY SYAFIQAH SALIM theedgemalaysia.com Bernama countries have already moved to address a similar loophole. Singapore implemented taxes on low-value goods from Jan 1, 2023, while Indonesia enacted such taxes from April 1, 2023. In Malaysia, the tax was originally slated for enforcement on April 1 this year. However, it was deferred to allow the Madani government to engage with industry playMeanwhile, an agency transferred to the Digital Ministry, besides MDEC and MyNIC, was the Department of Personal Data Protection, according to Fahmi. Fahmi on Monday also assured that the government has no intention of carving the telecommunications regulatory power out of MCMC at this juncture. “At this point, [MCMC] remains as it is.” He also refuted assertions that carving out the digital portion from his previous ministry was a reflection of his performance, and dismissed claims that he intends to keep hold of MCMC because of the agency’s power in having the final say on the lucrative spectrum allocation. “Those who say that ‘You know, it is carved out because Fahmi failed’, must be wrong. Perhaps you should talk to my detractors and try to convince them,” he told reporters. “But having said that, [it is] because a lot of the initiatives (under MCMC) are about communication, enabling [and] providing access to communication across many different communities, and making sure these communities are not left behind. “So, they (the initiatives) may not necessarily be digital, per se. For example, radio is still broadcasting you know, whether it’s shortwave, mediumwave, FM (frequency modulation). So that’s not digital per se, that format, right? So that’s why MCMC remains with this ministry,” he added. FROM PAGE 7

TUESDAY DECEMBER 19, 2023 9 THEEDGE CEO MORNING BRIEF

TUESDAY DECEMBER 19, 2023 10 THEEDGE CEO MORNING BRIEF HOME SINGAPORE (Dec 18): A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the US expands sanctions on China’s chip industry, sources said. The companies are asking Malaysian chip packaging firms to assemble a type of chip known as graphics processing units (GPUs), according to three people with knowledge of the discussions. The requests only encompass assembly — which does not contravene any US restrictions — and not fabrication of the chip wafers, they said. Some contracts have already been agreed, two of the people added. The people declined to disclose the names of the companies involved or to be identified, citing confidentiality agreements. Seeking to limit China’s access to high-end GPUs that could fuel artificial intelligence breakthroughs or power supercomputers and military applications, Washington has increasingly placed restrictions on their sales as well as on sophisticated chip-making equipment. As those sanctions bite and an AI boom fuels demand, smaller Chinese semiconductor design firms are struggling to secure sufficient advanced packaging services at home, analysts have said. Some of the Chinese companies are interested in advanced chip packaging services, two people said. Advanced packaging of chips can significantly improve chip performance and is emerging as a critical technology in the semiconductor industry. This sometimes involves the construction of chiplets where chips are packaged tightly to work together as one powerful brain. Although not subject to US export restrictions, it’s an area that can require sophisticated technology which the firms worry might one day be targeted for curbs on exports to China, the two people added. Malaysia, a major hub in the semiconductor supply chain, is seen as well placed to grab further business as Chinese chip firms diversify outside of China for assembling needs. Unisem, majority owned by China’s Huatian Technology, and other Malaysian chip packaging companies have seen increased business and inquiries from Chinese clients, said one source who was briefed on the matter. Unisem chairman John Chia declined to comment on the company’s clients but said: “Due to trade sanctions and supply chain issues, many Chinese chip design houses have come to Malaysia to establish additional sources of supply outside of China to support their business in and out of China.” Chinese chip design firms also see Malaysia as a good option because the country is perceived as being on good terms with China, is affordable, with an experienced workforce and sophisticated equipment, two of the sources said. Asked whether accepting orders to assemble GPUs from Chinese firms could potentially provoke US ire, Chia said Unisem’s business dealings were “fully legitimate and compliant” and the company did not have the time to worry over “too many possibilities”. He noted that most of Unisem’s customers in Malaysia were from the US. The US Department of Commerce did not respond to requests for comment. Other big chip packaging firms in the country include Malaysian Pacific Industries and Inari Amertron. They did not respond to Reuters requests for comment. BY FANNY POTKIN & YANTOULTRA NGUI Reuters Chinese firms look to Malaysia for assembly of high-end chips, sources say Chinese companies are also interested in having their chips assembled outside China as that could also make it easier to sell their products in non-Chinese markets, said one source, an investor in two Chinese chip startups. A major hub Malaysia currently accounts for 13% of the global market for semiconductor packaging, assembly, and testing and is aiming to boost that to 15% by 2030. Chinese chip firms that have announced plans to expand in Malaysia include Xfusion, a former Huawei unit, which said in September it would partner with Malaysia’s NationGate to manufacture GPU servers — servers designed for data centres and which are used in AI and high-performance computing. Shanghai-based StarFive is also building a design centre in Penang, and chip packaging and testing firm TongFu Microelectronics said last year it would expand its Malaysia facility — a venture with US chipmaker AMD. Offering an array of incentives, Malaysia has attracted multi-billion dollar chip investments. Germany’s Infineon said in August it would invest €5 billion (RM25.2 billion) to expand its power chip plant there. US chipmaker Intel announced in 2021 that it would build a US$7 billion advanced chip packaging plant in Malaysia. Chinese companies are not just choosing Malaysia. In 2021, JCET Group, the world’s third-largest chip assembly and testing company, completed an acquisition of an advanced testing facility in Singapore. Other countries such as Vietnam and India are also seeking to expand further into chip manufacturing services, hoping to lure clients keen to minimise U.S.-Sino geopolitical risks. Unisem, majority owned by China’s Huatian Technology, and other Malaysian chip packaging companies have seen increased business and inquiries from Chinese clients, said one source who was briefed on the matter. REUTERS

tuesday december 19, 2023 11 The E dge C E O m o rning brief home KUALA LUMPUR (Dec 18): Pertama Digital Bhd’s share price, which opened at RM2.66 in Monday’s morning trade, has surged as much as 12.5% to a high of RM2.98, making it one of the top six gainers in Bursa Malaysia on Monday. At market close, the counter was at RM2.93, up 28 sen or 10.57%, paring some of its losses over the past month after falling from its record high of RM4.65 on Nov 20. The stock, which is down over 35% from a month ago, has a market capitalisation of RM1.28 billion. The reason for the rebound in Pertama Digital’s share price on Monday is unclear. Just last month, the intraday short selling (IDSS) of Pertama Digital’s shares were twice suspended, as its shares dived. The first IDSS suspension was on Nov 21, when Pertama Digital’s share price dropped by over 15% from its previous closing price. The second suspension was on the next day, when the stock dropped a further 94 sen or 26.78% in early trades. Earlier last month, Pertama Digital announced the cessation of Sivabalan Poobalasingam as its chief financial officer after the end of his contract. This came less than two weeks after the resignation of CEO Saifullah Akhtar, citing “personal interests” as the reason, on Oct 31. No replacement has been announced for both positions. In September, Pertama Digital saw the emergence of CGS-CIMB Securities Sdn Bhd as a substantial shareholder, with a 7.588% stake following acquisitions in the open market. The group’s largest shareholder is non-executive chairman Tun Datuk Seri Zaki Tun Azmi, with a 10.07% stake in the company held via Mypay Capital Sdn Bhd. Other substantial shareholders include executive director Sabri Ab Rahman (10%) and non-executive director Datuk Ahmad Nazri Abdullah (5.06%). The group has suffered losses for six consecutive quarters. For the nine months ended Sept 30, 2023 (9MFY2023), Pertama Digital recorded a net loss of RM6.61 million, compared to a net profit of RM2.55 million in the previous year’s corresponding period, while revenue fell 39.9% to RM4.59 million from RM7.65 million. In 2022, Pertama Digital was categorised as a company with a level of business that is deemed indequate to warrant continued trading or listing on Bursa Malaysia, following the disposal of its major business, its China-based textile arm Be Top Group Ltd, for RM70 million. The group has been given until Feb 9 next year to submit its plan to Bursa to regularise its condition. Pertama Digital rebounds as one of the top six gainers on Bursa KUALA LUMPUR (Dec 18): Newly listed ACE Market counter Critical Holdings Bhd ended its maiden trading day at 57 sen on Monday (Dec 18), up 62.86% from the initial public offering (IPO) price of its shares of 35 sen. The mechanical, electrical and process utilities (MEP) engineering company saw 136.7 million shares changing hands, making it the fourth most actively traded stock of the day, valuing the group at RM211.9 million. This makes Critical Holdings the 12th best performing IPO among the 31 new stocks listed on Bursa this year. Critical Holdings raised a total of RM26.02 million via the public issuance of 74.35 million shares under its IPO. Of the proceeds raised, RM6 million has been allocated for the acquisition of a new regional office, RM1.6 million for capital expenditure and RM4.5 million for the expansion of its sales and technical team. It has also set aside RM9.92 million for working capital and RM4 million for listing expenses. Critical Holdings and its group of subsidiaries provide MEP engineering solutions and MEP maintenance and services for critical facilities, namely, plant rooms, cleanrooms and data centres. The end-user markets it serves include the semiconductor, pharmaceutical and solar photovoltaic panel manufacturing sectors as well as data centre, co-location services, telecommunications, hotel and medical facilities sectors. At a press conference after the group’s listing on Monday, Critical Holdings chief executive officer (CEO) Tan Si Lim said the group is proactively securing more projects, moving forward. As of Oct 5, the group’s unbilled order book stood at RM264.6 million, which is expected to provide earnings visibility until FY2026. Of the unbilled orders, RM225.8 million comes from contracts in the northern region (Penang and Kedah), while RM38.7 million is from the central and southern region (Selangor, Kuala Lumpur and Johor). Its plan to expand its sales and technical team, meanwhile, is to support its existing Critical Holdings jumps 63% on ACE Market debut by Anis Hazim & Luqman Amin theedgemalaysia.com by Emir Zainul theedgemalaysia.com Critical Holdings Bhd 0 10 20 30 40 9am 4.57pm Dec 18, 2023 0 20 40 60 Vol (mil) Sen 57 sen 49.5 sen Source: Bloomberg IPO price: 35 sen business operations and to venture further into the central and southern regions. “This will allow us to better manage and control the progress of various larger scale MEP engineering solutions projects we undertake. At the same time, it enables us to supervise and monitor the works of our workers and subcontractors at different project sites simultaneously,” Tan said. After the team expansion, the group aims to further develop its capacity to undertake more sizable MEP engineering solutions projects. Pertama Digital Bhd Source: Bloomberg Dec 30, 2022 Dec 18, 2023 RM2.93 RM1.76 RM 1 2 3 4 5

TUESDAY DECEMBER 19, 2023 12 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): Analysts have maintained an “overweight” rating on the property sector, anticipating it to be a primary beneficiary of the revamped Malaysia My Second Home (MM2H) programme, with increased domestic activities driven by a surge in infrastructure projects and investments. RHB Investment Bank Research said it is upbeat on the new MM2H programme as the age and income requirements are now more reasonable, while the tiered system provides greater flexibility to foreign participants. In a sector update on Monday, the research house said Iskandar Malaysia stands to benefit the most as the region is currently seeing an influx of investments and catalysts from infrastructure developments. Besides that, it said the Kuala Lumpur City Centre and Mont Kiara in the Klang Valley, as well as Penang may also benefit, being preferred locations among foreigners. “The revision of the MM2H programme is timely, especially as Iskandar Malaysia is currently seeing a boost in demand, driven by an influx of investments as well as the upcoming completion of the Johor Bahru-Singapore Rapid Transit System (RTS), slated for end-2026. The friendlier policy will help to encourage the potential relocation of skilled workers, which has been the government’s objective to spur growth in Johor,” it said. Last Friday, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing had announced new and more relaxed conditions for the MM2H programme, intended to simplify the application process, which had previously been criticised as burdensome. The programme is now divided into three categories: Platinum, Gold and Silver. The new conditions will be on a year-long trial period with the criteria and conditions possibly streamlined later in accordance with current needs. Under the new MM2H programme, the age requirement has been lowered to 30 and above (vs 35 and above previously) with the programme also extended to dependents aged between 21 and 34 who are not working or married in Malaysia. Read the full story More from brokers: HLIB ‘overweight’ on O&G sector; Bumi Armada, Wasco and Velesto top picks Stronger economy, political stability to fuel KLCI in 2024, says TA Research Kenanga downgrades auto sector, sees TIV contracting to 710,000 units in 2024 Analysts stay ‘overweight’ on property sector on revamped MM2H (Dec 18): A blistering rally in YTL Power International Bhd this year has scope to continue as better performance from its overseas assets brightens the earnings outlook for the Malaysian power producer. The share price has more than tripled in 2023, making it the biggest gainer among local companies with a market capitalsation of more than RM1 billion. Analysts are still calling for a buy in the stock, predicting that it could climb as much as 60% next year. YTL Power and its conglomerate parent are joining the benchmark FBM KLCI Index on Monday. YTL Corp, controlled by tycoon Tan Sri Francis Yeoh and his siblings, has surged about 230% this year. Both stocks jumped in early trade on Monday before relinquishing gains. Earnings from YTL Power’s venture in neighbouring Singapore will remain strong next year on elevated retail margins, while contribution from its Wessex Water unit in the UK is expected to improve as inflation slows, according to analysts. Both countries make up more than 90% of its group revenue. There could be potential surprises to its earnings outlook too. YTL Power is expected to benefit from Malaysia’s energy transition plans, particularly in the area of renewable-energy exports. Its tie-up with Nvidia Corp to build an artificial intelligence data centre in Johor is adding to the optimism. “Having presence on both sides of the border, they definitely have a big advantage” in potential energy exports to Singapore, even though the regulatory framework has yet to be completed, said Hafriz Hezry Harihodin, an analyst at MIDF Research. YTL Power posted net income of RM2 billion on the back of record revenue for the financial year ended June. Its 12-month forward earnings estimate for this quarter alone has risen nearly 28%. Even after soaring more than 200% in 2023 to a record high earlier this month, valuations remain undemanding. YTL Power is trading at about seven times forward-earnings estimates, compared with its five-year average of almost 13 times. The company’s improving profitability is also boosting YTL Corp, which derives more than half of its revenue from the power unit. Another potential “wild card” for the main company — which also has construction, cement and hospitality businesses — is the revival of the Singapore-Malaysia high speed rail, said MIDF’s Hafriz. They are “most likely” to put in a bid for the revived project, he said. Malaysia is currently accepting proposals from companies and consortium who are interested in undertaking the rail link. YTL Power poised for more gains after 200% rally BY RAM ANAND Bloomberg BY EMIR ZAINUL & SURIN MURUGIAH theedgemalaysia.com

TUESDAY DECEMBER 19, 2023 13 THEEDGE CEO MORNING BRIEF HOME NEWS IN BRIEF UWC 1Q net profit drops 85% on lower revenue KUALA LUMPUR (Dec 18): UWC Bhd’s net profit dropped 85.12% to RM4.35 million in the first quarter ended Oct 31, 2023 (1QFY2024) from RM29.25 million a year earlier, due to lower revenue. Earnings per share fell to 0.4 sen from 2.66 sen. Quarterly revenue declined 51% to RM45.46 million from RM92.12 million, which the group blamed on the impact of macroeconomic headwinds especially the semiconductor market cyclical downturn. On a quarter-on-quarter basis, the group’s net profit came in higher compared with RM1.94 million in 4QFY2023 as revenue climbed 13.73% from RM39.97 million. In its filing with Bursa Malaysia, UWC said that based on the latest forecast by World Semiconductor Trade Statistics, the semiconductor market is expected to experience a robust recovery, with forecast growth of 13.1% in 2024. Expansion in 2024 is anticipated across all categories and primarily driven by the memory sector, the group said. “The group still maintains an optimistic outlook towards both its business and the industries in which it operates for the coming years while at the moment seeing signs of recovery. “The group continues to focus on commencing new projects, onboarding new customers and strategizing long-term growth plan to optimize potential business opportunities,” added UC. — by Sulhi Khalid Petronas inks production sharing contracts for Suriname’s Blocks 63 and 64 KUALA LUMPUR (Dec 18): Petronas Suriname E&P BV, a Petronas subsidiary, has signed production sharing contracts for Suriname’s offshore Blocks 63 and 64 with Staatsolie Maatschappij Suriname NV, a Surinamese oil and gold company. Petronas Suriname E&P has won the blocks, located in the Guyana-Suriname Basin, during the Suriname Demerara Bid Round 2022-2023 in June 2023, the group said in a statement on Monday. “Petronas Suriname E&P has 100% participating interest and is the operator of Block 63. TotalEnergies will operate Block 64 with 40% participating interest, with the remaining interest equally split between Petronas Suriname E&P and QatarEnergy,” said Petronas. Block 63 has an area of 5,425 square kilometres (sq km) and is located approximately 200km offshore Suriname in water depths of about 1,700 metres. Block 64 is 6,262 sq km in size and is located 250km from the shore in slightly shallower water of 1,300 metres. Petronas vice-president of exploration Mohd Redhani Abdul Rahman said securing the blocks is crucial to Petronas’ effort to unlock Suriname’s vast resource potential in the basin. “This underscores the aspiration to build our presence in the country and strengthen our international portfolio, especially in the Americas. “We look forward to working alongside the host authority and our partners to achieve more significant milestones while ensuring secure, affordable and sustainable energy to the market,” he said. — Bernama Higher expenses, investment losses weigh on United Malacca’s 2Q KUALA LUMPUR (Dec 18): United Malacca Bhd’s net profit in the second quarter ended Oct 31, 2023 (2QFY2024) fell 12.64% to RM13.72 million from RM15.71 million in the previous year, mainly due to higher expenses and investment losses. The planter saw an investment loss contributed by net foreign exchange loss of RM2.83 million during the quarter, its bourse filing showed. Quarterly revenue, however, climbed by 3.13% to RM144.51 million against RM140.13 million in the previous year. The group declared its first interim dividend of five sen per share, to be paid on Jan 31, 2024. For the first six months ended Oct 31 (1HFY2024), the plantation group’s net profit dropped by 59% to RM16.40 million from RM40.01 million recorded in the same period last year. Revenue fell 9% to RM280.46 million from RM307.57 million. Moving forward, the group expects fresh fruit bunches production to increase in the financial year ending April 30, 2024 (FY2024) due to better age profile and an expected improvement in its Indonesian operations. “Assuming crude palm oil (CPO) prices remain at the current level, the group expects satisfactory results for FY2024,” it said. — by Sulhi Khalid Majuperak to sell land to state agriculture agency as part of business regularisation plan KUALA LUMPUR (Dec 18): Majuperak Holdings Bhd is selling 2.01 acres of land in Ipoh to a wholly-owned unit of the Perak State Agriculture Development Corp (PPPNP) for RM18.4 million, as part of its business regularisation plan. Majuperak, a 51.41%-owned subsidiary of the Perak State Development Corp, is selling the plots via its wholly-owned Syarikat Majuperak Bhd. The disposal will enable the group to unlock the land’s value, the group said in a bourse filing on Monday, adding that the proceeds will be used to settle debts and for day-to-day operations. “The proposed disposal forms part of Majuperak’s business regularization plan, which is still in the midst of being finalised. Majuperak plans to make the requisite announcement for its proposed regularization plan by the second quarter of 2024,” said Majuperak. The disposal is expected to be completed by the second quarter of 2024. In April 2020, Majuperak was classified as an affected issuer when its unaudited financial statements for the year ending Dec 31, 2019 showed insignificant business or operations. — by Choy Nyen Yiau Abu Tariq Jamaluddin is new IRB CEO KUALA LUMPUR (Dec 18): The Inland Revenue Board (IRB) has promoted its deputy CEO (Compliance) Datuk Abu Tariq Jamaluddin as the new CEO of the agency effective last Sunday (Dec 17). The appointment follows the end of Datuk Seri Dr Mohd Nizom Sairi’s service contract on Dec 16, IRB said. Mohd Nizom served the position for just under two years and two months, after being promoted on Oct 19, 2021, from his previous position as deputy CEO (tax operations). At that time, Mohd Nizom took over from Datuk Seri Sabin Samitah, who served five years and ten months before his request to resign, which resulted in the early termination of his contract. “Datuk Seri Dr Mohd Nizom Sairi, 61, has served 38 years in IRB, the agency said. “Among his significant contributions include introducing the concept of AES [awareness, education and services[ to strengthen the service provision in IRB. It was intended to rebuild public trust towards the nation’s direct tax collection system,” said the agency in a statement. IRB’s tax collection also breached record high under Mohd Nizom’s purview, namely RM175.4 billion in 2022, it added. Abu Tariq, a law graduate from the University of Malaya, has served in IRB for 28 years, during which he had been appointed deputy CEO (policy) and director of the law department of the agency. Abu Tariq has vast experience in the direct tax segment, comprising legal and tax compliance, it added. — by Adam Aziz

TUESDAY DECEMBER 19, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Dec 18): The prosecution in the ongoing 1Malaysia Development Bhd-Tanore (1MDB-Tanore) trial is planning to call the troubled fund’s former general counsel Jasmine Loo Ai Swan to the stand. Deputy public prosecutor (DPP) Ahmad Akram Gharib told the court on Monday that this was due to the testimony of investigating officer (IO) ACP Foo Wei Min. “This cropped up from the cross-examination of ACP Foo. There were parts where ACP Foo was allowed to give his opinion on the status of Jasmine Loo’s evidence given to him. Because of that there may be gaps that are opened and we are planning to call [her] as a witness,” he told the court. To this, trial judge Datuk Collin Lawrence Sequerah commented that “that is something new”. Previously on the stand, Foo — the prosecution’s 48th witness — concurred with lead defence counsel Tan Sri Muhammad Shafee Abdullah’s suggestion that Loo’s testimony could either “put a nail in Najib’s coffin” or acquit him of his 21 money laundering charges. Foo said he got this information from Loo during interrogation after the former fugitive surrendered herself to the police on July 7. Foo had stressed that he was only investigating Loo, a central figure in the 1MDB debacle, on the issue of asset recovery. The topic of pending witnesses came about at the close of the proceedings on Monday, after parties finished with their last bits of cross-examinations and re-examination of 47th prosecution witness BNM analyst Adam Ariff Mohd Roslan. Shafee informed the court that after Malaysian Anti-Corruption Commission (MACC) investigating officer Nur Aida Arifin, there is still the continued cross-examination of Bank Negara Malaysia (BNM) governor Tan Sri Zeti Akhtar Aziz. The defence counsel also indicated, as he has previously, that he may recall former 1MDB chief financial officer (CFO) Azmi Tahir and the fund’s former chief executive officer (CEO) Mohd Hazem Abd Rahman to testify. In September, the police said that Loo — who was at large since 2018 — helped identify assets worth over RM93.2 million purchased using 1MDB monies. Loo is still being investigated by other agencies over 1MDB. Following her return, Sequerah had disclosed that he and Loo were partners in Messrs Zain & Co more than a decade ago while the Court of Appeal (COA) judge was practising law. This prompted the defence to apply to disqualify the judge which was subsequently dismissed. The court ruled that the defence failed to show that there was a real danger of bias, adding that past associations such as employment history alone are insufficient indications of that bias. The defence is appealing this decision. Besides the 21 money laundering charges, Datuk Seri Najib Razak also faces four counts of abuse of power for using his position as then prime minister, finance minister and chairman of 1MDB’s board of advisers to receive gratifications worth RM2.28 billion. The trial continues on Jan 2. Prosecution plans to call ex-1MDB counsel Jasmine Loo as witness in 1MDB-Tanore trial TOKYO (Dec 18): Prime Minister Datuk Seri Anwar Ibrahim’s working visit to Japan in conjunction with the Asean-Japan Commemorative Summit has managed to attract potential investments worth RM6.56 billion. Based on the meetings with parties there, including Japanese Prime Minister Fumio Kishida, Anwar said it is clear that the Malaysia-Japan relations are now seeing a new shift in terms of investment, trade, education and technology cooperation. “The visit to Japan has been a success to be proud of, managing to attract potential investments valued at RM6.56 billion,” he told a press conference at the end of his visit to Japan here on Monday. Along with potential investments worth RM23 billion secured during the previous Malaysian delegation’s visit to Japan in June, it brings the cumulative potential investments from visits to the Land of the Rising Sun to RM29.56 billion. Three Japanese corporations with investments in Malaysia, namely Rohm Wako, NEC Co Ltd and Mitsui & Co, have also conveyed their willingness to increase investments during one-on-one meetings last Saturday. Anwar said the potential investments could be in the form of new investments or expansion of existing investments. Anwar’s visit to Japan attracts RM6.56 bil in potential investments Asked about the sectors involved in the potential investments worth RM6.56 billion, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who was with Anwar at the press conference, replied that it involved the renewable energy, electrical and electronics, chemicals and digital economy sectors. Japanese investors are now more confident in Malaysia, Anwar said, adding that he was told there were a lot of positive reviews about the country appearing in the Japanese. Japanese companies, including small and medium enterprises, have shown very encouraging response, including Rohm Wako, which has investments in Kota Bahru, Kelantan. Anwar said he has assured the electronics company that the government will provide the necessary infrastructure to enable it to add a large second-stage investment. “Since they have been investing there for a long time and are now waiting for the federal government’s green light for expanding their investment, I have strongly encouraged them and their request will be looked at by Miti (Investment, Trade and Industry Ministry) so it can be expedited. “They are also satisfied with the discipline and work ethics of the local workers, which represent another attraction for investors,” he said. BY RAVICHANDRAN DJ PAUL Bernama BY TARANI PALANI theedgemalaysia.com Prime Minister Datuk Seri Anwar Ibrahim at a press conference in Tokyo at the end of his visit to Japan on Monday BERNAMA

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The enhanced sustainability reporting framework calls for improved reporting related to common sustainability matters, climate change disclosures in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations, and enhanced quantitative information. In October 2023, Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia, launched its Simplified ESG Disclosure Guide (SEDG) targeting small and medium enterprises (SMEs) in global supply chains. Simplifying ESG frameworks and offering ESG disclosure guidelines for SMEs, the SEDG empowers SMEs with a practical framework to track and report their ESG data, respond effectively to disclosure requests from stakeholders, and embrace sustainable practices. As the mandate for enhanced ESG reporting gains importance, Alliance Bank has been at the forefront of preparing PLCs and SMEs for this shift. 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TUESDAY DECEMBER 19, 2023 16 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): North Korea on Monday fired an intercontinental ballistic missile (ICBM) towards waters off its east coast in a show of force after the US and South Korea held talks on containing Pyongyang’s atomic ambitions. The missile splashed down west of Japan’s main northern island of Hokkaido at about 9.37am, the Defence Ministry in Tokyo said. Vice Defence Minister Shingo Miyake told reporters the rocket appeared to be an ICBM. The missile was launched at 8.42am from an area near Pyongyang and flew on a lofted trajectory, South Korea’s Joint Chiefs of Staff said. This would be North Korea’s fifth ICBM test this year. The class of missile is the most powerful in its arsenal and designed to deliver a nuclear warhead to the US mainland. Pyongyang usually releases images of its ICBM launches several hours afterwards, giving analysts in the outside world a chance to evaluate the state’s latest missiles. The launches coincided with talks between the US and South Korea on deepening cooperation in deterring Kim Jong Un from using atomic weapons. The US sent the nuclear-powered USS Missouri attack submarine to the South Korean port of Busan over the weekend, in its latest dispatch of military assets to the region as a part of its deterrence policy. Before the talks, a top South Korean security official said North Korea may soon test an ICBM, which is designed to deliver a warhead to the US mainland. On Sunday night, North Korea fired a short-range ballistic missile that flew 570km (355 miles) before falling into waters off its east coast, South Korea’s Joint Chiefs of Staff said. North Korea slammed the meeting of the so-called Nuclear Consultative Group, with a spokesman for the Ministry of National Defence saying the discussion was “an open declaration on nuclear confrontation to make the use of nuclear weapons against the DPRK a fait accompli in case of emergency,” North Korea’s official Korean Central News Agency reported. Kim is poised to hold a major policy-setting meeting at the end of the year. By testing ballistic missiles, he can show his top cadres and people that the country’s nuclear arsenal is making great strides in being able to attack the US, reinforcing the propaganda message that its expansion is essential to prevent a US invasion. The latest launches come after North Korea placed a satellite into orbit in late November, moving Kim closer to his key policy goal of deploying an array of reconnaissance probes to keep an eye on US forces in the region. Read the full story Read also: Canada to announce all new cars must be zero emissions by 2035-report Britain calls for Jimmy Lai’s release as Hong Kong trial begins North Korea fires ICBM after US holds nuclear talks with Seoul A 50-year concession will be granted to the winning consortium that may comprise shippers, logistics operators, port managers, property developers and industrial investors, Thailand’s Transport Minister Suriya Juangroongruangkit told Japanese investors in Tokyo on Monday. The so-called landbridge project will be divided into four phases between 2025 and 2040 and may achieve breakeven in 24 years, he said. Prime Minister Srettha Thavisin has pitched the mega project to prospective investors from the US, China and the Middle East. The plan, which can transform Thailand into a major transit hub for international trade, involves linking two new seaports on either side of the country’s southern peninsula by highway and rail networks. Once completed, the project will help vessels avoid the Malacca Strait, cut travel time by an average of four days and lower shipping costs by 15%. The government also plans to enact a new law to facilitate the project’s development as well as its adjacent areas, Suriya said. Srettha on Monday also reiterated that the project will help create 280,000 jobs and propel Thailand’s annual economic growth rate to 5.5% when it is fully implemented. Southeast Asia’s second-largest economy grew 2.6% last year and is forecast to expand 2.5% to 3% in 2023. Thailand plans global bidding for US$29 bil landbridge project to help bypass Malacca Strait BY SUTTINEE YUVEJWATTANA Bloomberg BY JON HERSKOVITZ & SHINHYE KANG Bloomberg A screen grab of the intercontinental ballistic missile which the South Korea’s Joint Chiefs of Staff said was launched at 8.42am from an area near Pyongyang and flew on a lofted trajectory. BLOOMBERG

TUESDAY DECEMBER 19, 2023 17 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): Goldman Sachs Group added its voice to a chorus of expectations of a weaker dollar after the US central bank’s clearest sign yet that interest-rate cuts are coming. The bank made sweeping changes to its exchange-rate forecasts after the Federal Reserve signaled a more-rapid move to “non-recessionary” interest-rate cuts, Goldman analysts including Michael Cahill wrote in a note on Friday. Ahead of the meeting, hedge funds and other large speculators switched to a net short position against the dollar for the first time since September, according to Commodity Futures Trading Commission data as of Dec. 12. The Bloomberg Dollar Spot Index dropped 1.2% last week and touched a four-month low after the Fed held interest rates and projected 75 basis points of reductions in 2024. Markets rushed to price in as many as six cuts, and Goldman’s economists moved to anticipate five. “Our new forecasts incorporate more dollar weakness than before,” the Goldman analysts wrote. “The biggest revisions to our forecasts are in the rate-sensitive currencies that would have struggled under a ‘higher for longer’ rates regime,” such as the yen, the Swedish krona and the Indonesian rupiah, they wrote. The combined position for bets across major currencies shifted to a net 26,355 contracts bearish on the dollar in the week ending last Tuesday, the CFTC data show. The biggest shifts were for the yen, with bets on dollar gains versus the Japanese currency dropping by more than 20%, and for the British pound, where wagers on dollar declines almost doubled. The yen soared 2% last week against the dollar, while the krona added 1.9%. Those were the biggest gains among G-10 currencies outside of Norway’s krone, which jumped more than 4% as its central bank unexpectedly lifted its key deposit rate. Read the full story Hedge funds turn bearish on Dollar, Goldman sees more losses (Dec 18): Just one month after setting a 2024 target for the S&P 500, Goldman Sachs Group Inc. strategists increased their forecast as the year-end rally shows no signs of abating. The Federal Reserve’s dovish pivot last week, along with lower consumer prices, is an outcome that will allow real yields to fall while supporting stock valuations, a team led by David Kostin wrote in a note. “Equities were already pricing positive economic activity but now reflect an even more robust outlook,” they said. Kostin sees the S&P 500 at 5,100 points by the end of next year, joining Wall Street peers like those at Bank of America Corp. and Oppenheimer Asset Management in expecting a fresh high in 2024. The Goldman strategist raised his forecast by almost 9% from the 4,700 level he predicted in mid-November. There is also a risk that his earnings forecast of 5% year-over-year growth in 2024 may prove too pessimistic, thanks to looser financial conditions that should boost economic activity and company profits, KosGoldman strategists lift S&P 500 forecast a month after setting it BY FARAH ELBAHRAWY Bloomberg BY GARFIELD REYNOLDS Bloomberg Equities were already pricing positive economic activity but now reflect an even more robust outlook.” tin said. The strategist previously said his team was right in predicting that the S&P 500 would show no profit growth in 2023, but was wrong to say the index wouldn’t climb this year. US equities have soared this year, amid expectations of a dovish policy shift and as artificial intelligence optimism lifted technology stocks. The S&P 500 is less than 2% away from its all-time peak, while the Nasdaq 100 hit its first record in two years after the Fed signaled that its aggressive rate hikes to contain inflation are likely over and cuts are on the table for 2024. But even with the rally, Kostin noted that $1.4 trillion was poured into money-market funds this year as interest rates climbed, far higher than the $95 billion that flowed into US equities. “As rates begin to fall, investors may rotate some of their cash holdings toward stocks,” he said. Even Morgan Stanley’s Michael Wilson — among the most prominent bearish voices on Wall Street this year — said the dovish pivot is a sign the Fed wants to make sure it shifts policy in time to achieve a soft landing. “This is a bullish outcome for stocks,” as the chances of avoiding an economic downturn have increased if the central bank prioritizes sustaining growth over reducing inflation to its target, he said. Wilson said that while there is a risk of the dovish pivot allowing inflation to eventually re-accelerate, it’s still “welcome news to equity investors, especially given the bond market’s reaction to the dovish guidance.” Markets seem to be of the view the Fed is not making a policy mistake, he wrote. His 2024 target remains 4,500, implying a near 5% drop from the last close.

TUESDAY DECEMBER 19, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): Federal Reserve chair Jerome Powell’s pivot toward interest-rate cuts is spreading holiday cheer in the White House, where the improved prospects for an economic soft landing are a boon for President Joe Biden’s bid for another term. Biden has seen his poll numbers sag amid voter anxiety over a surge in the cost of living, and he would face a bigger headwind to winning another term in November if the US tumbled into a recession. As top aides continue to tout the strength of the economy — including low unemployment, easing price pressures and sturdy growth — falling rates would bolster his case to voters. But there are pitfalls for the US central bank. Powell’s surprising pivot risks fanning suspicions that he’s deliberately trying to give Biden a boost in his expected re-match with Donald Trump. The Fed chief said on Dec 13 that the Fed doesn’t take politics into account in making policy. The upcoming election “exposes them to heightened criticism,” said Brookings Institution senior fellow Sarah Binder. “It makes it harder for them to maintain their credibility and to make good monetary policy.” Fed rate-cut pivot is welcome news for Biden, but carries pitfalls for Powell (Dec 18): A vehicle used to track longer-dated US government bonds surged into a bull market, as investors seek to end three years of pain on the Federal Reserve’s willingness to consider interest-rate cuts. The iShares 20+ Year Treasury Bond ETF, a popular tool for betting on long-dated debt, jumped to touch 99.35 on Friday. That’s a gain of 21% from the 16-year low reached on Oct 23, qualifying as a bull market. The gauge is still down more than 40% since it peaked in 2020. While many investors are still focusing on shorter-dated bonds as a safer bet amid an uncertain outlook for monetary policy, the potential for steep gains at the longer end is drawing plenty of interest. The fund received US$1.3 billion (RM6.1 billion) of new money on Friday, the biggest inflow in almost five months. Long-dated Treasuries enter bull market as Fed pivot feeds rally BY GARFIELD REYNOLDS Bloomberg BY RICH MILLER Bloomberg However, concerns of an over-supply of issuance in long-term debt and the threat that inflation could reignite next year are weighing on some investors, as they seek compensation for the added risk. Kellie Wood, deputy head of fixed income at Schroders Plc in Sydney, said her firm has been focusing on shorter-dated notes. “This is totally a case of FOMO,” or a fear of missing out, Wood added. “Retail investors have been waiting to see more positive returns from fixed income before allocating after many years of negative returns.” Traders who bought the 10-year US note sold on Nov. 8, would have stood to gain 5% if they offloaded the security at the end of last week, data compiled by Bloomberg show. By comparison, the twoyear note auctioned in late October gained about 1.7% since then. The ETF entered a bear market in February 2021 when its decline from an August 2020 peak first exceeded 20%. It previously saw rises of more than 10% from troughs in December 2021, August 2022 and March 2023, but fell short of the 20% guideline used to define the end of a bear market and the start of a new bull rally. While the job market has remained strong and the underlying economy resilient, a dramatic run-up in prices since Biden took office has soured voters on his handling of the economy. A Bloomberg News/Morning Consult poll published Thursday found former President Trump with an edge on perceptions of the economy. When respondents were asked which leader they trust more to handle the economy, Trump led Biden 51% to 33%, with 16% who said neither. The poll is based on responses by 4,935 registered voters contacted between Nov 27 and Dec 6. Amid all the chatter about polls, debates and campaign spending, “behind the scenes is what really matters, namely how good or bad the economy will be,” said Yale University professor Ray Fair, who’s developed a macroeconomic computer model for predicting presidential elections. After the Fed held rates steady for the third straight meeting, Powell told reporters on Wednesday that policymakers were probably done hiking and had begun discussing when to cut rates. In projections released after the gathering, officials foresaw rates at the end of next year three-quarters of a percentage point lower than they are now. The anticipated rate cuts “could go a long way toward addressing voters’ discontent with Biden’s economy,” said Tobin Marcus, head of US policy and politics at Wolfe Research and a former Biden adviser. “The highest mortgage rates in a generation are one of the last acutely abnormal economic dynamics, now that peak inflation and pandemic shocks have passed, and we think voters will feel a bit better next year as rates normalise.” Read the full story

TUESDAY DECEMBER 19, 2023 19 THEEDGE CEO MORNING BRIEF WORLD BEIJING (Dec 18): China’s economy is expected to see more favourable conditions, and more opportunities than challenges in 2024, state media said citing officials of the Chinese Communist Party’s finance and economy office. Macroeconomic policies will continue to provide support for economic recovery, the official Xinhua said in a detailed readout of the annual Central Economic Work Conference held from Dec 11-12, during which top leaders set economic targets for the following year. “China’s prices are low, central government debt levels are not high, and conditions are in place to strengthen implementation of monetary and fiscal policies,” Xinhua said, quoting the office of the Central Financial and Economic Affairs Commission late Sunday. Still, blockages persist in the domestic economic cycle as demand, consumption and enterprise investment remain weak. Next year, the party officials said China will look to shift from a post-pandemic recovery to sustained consumption growth. The International Monetary Fund last month revised upward its growth forecast for China to 5.4% this year, attributing the revision to a “strong” post-Covid recovery. The government has set a target of around 5%. The world’s second-largest economy will also cultivate new consumption growth areas such as smart homes, recreation and tourism and sports events. The effects of this year’s treasury bond issuance, cuts in interest rates, tax and fee cuts and other policies will continue into next year, the report said. China would also continue to monitor its battered real estate market and meet the reasonable financing needs of real estate companies. “With the concerted efforts of all parties, the policy objectives of real estate risk prevention and market stabilisation can be fully achieved,” the Xinhua report said. China’s economic conditions to improve in 2024 — officials (Dec 18): Stock investments: down 30%. Salary package: down 30%. Investment property: down 20%. As Thomas Zhou reflects on 2023, his household finances are front of mind. “It’s just heart-breaking,” the 40-yearold financial worker from Shanghai said. “The only thing that still keeps me going is the thought of keeping my job so I can support my big family.” Zhou’s predicament will resonate with many people in China, where slumps in the real estate and stock markets are wiping away household wealth. And as the world’s second-largest economy struggles to regain momentum after years of Covid-19 lockdowns, there’s also the growing threat of unemployment. Now, middle class households are being forced to rethink their money priorities, with some pulling away from investing, or selling assets to free-up liquidity. At the heart of the decline in family wealth is China’s real estate meltdown, which having a pervasive effect on a society where 70% of family assets are tied up in property. Every 5% decline in home prices will wipe out 19 trillion yuan (RM12.6 trillion) in housing wealth, according to Bloomberg Economics. “It might just be the beginning of more wealth losses in coming years,” said Eric Zhu, an economist with Bloomberg Economics. “Unless there’s a big bull market, small gains in financial wealth are unlikely to offset losses in housing wealth.” While China’s official data show just a mild drop in its existing home prices, evidence from property agents and private data providers indicate declines of at least 15% in prime areas in its biggest cities. The housing sector’s value may shrink to about 16% of China’s gross domestic product by 2026 from around 20% of GDP currently, according to Bloomberg Economics. This would put about five million people, or about 1% of urban workforce, at the risk of unemployment or reduced incomes. Rainy days Financial investments offer little respite. Chinese shares underperformed emerging-market peers by the widest margin since at least 1998 earlier this month. Mutual funds were in the red as of the third quarter. Yields on banks’ wealth management products remain subdued and deposit rates have seen three reductions in the past year. The US$2.9 trillion trust industry, where wealthy Chinese investors have sought high returns from products sold by loosely regulated shadow banks, is showing cracks, with one recent scandal potentially involving tens of billions of dollars in losses. Net worth per adult in China slid 2.2% to US$75,731 in 2022, UBS said in its August global wealth report, while total assets per adult fell for the first time since 2000 as non-financial holdings shrank due to the housing market difficulties. Media worker Echo Huang watched as the value of her investment property in Ningbo, Zhejiang province fell about one million yuan from its 2019 peak. Now, she considers herself lucky to have sold it in May before prices dropped further. Read the full story China’s real estate meltdown is battering middle class wealth Bloomberg BY LIZ LEE Reuters

TUESDAY DECEMBER 19, 2023 20 THEEDGE CEO MORNING BRIEF WORLD HONG KONG (Dec 18): Hong Kong’s luxury retailers are adapting to fewer wealthy Chinese shoppers visiting the city and a shift towards tourists flocking to Instagram-coveted spots in trendy districts rather than splashing out on pricey branded gear. Before the pandemic, the Chinese special administrative region had bucked global trends of declining demand for multi-brand department stores and ultra-luxury brands largely due to its attractiveness to high-spending mainland visitors. But the rise of competing shopping hubs like China’s Hainan island, changing consumer preferences and a rise in online shopping have fundamentally changed demand for luxury goods in Hong Kong and are starting to reshape the city’s visitor economy, according to industry experts. “The focus of visitors in Hong Kong has shifted from ‘shop till you drop’ to a greater desire for local culture and experience-based touring,” said Rosanna Tang, an executive director at Cushman & Wakefield. Overnight and same-day visitor shopping spend was at 55% and 18% of 2018 levels respectively in the first half of the year, said Tang, prompting retailers to focus more on food and beverage outlets. British luxury department store Harvey Nichols is at the forefront of the changes. Its owner Dickson Concepts said last month it would give up its lease on its flagship five-level store in the upscale Landmark mall in the city’s centre after almost two decades. “Chinese tourists coming to Hong Kong are no longer focused on shopping as they used to be before the pandemic,” the company said in a statement. There are also fewer visitors, with arrivals recovering to just 60% of the levels in 2018, before anti-government protests in 2019 and stringent rules during the pandemic. Hong Kong’s total retail sales are down about 20% from 2018 levels and in an effort to reduce the reliance on luxury spending by Chinese shoppers, the government and tourism sector are trying to woo visitors to nature and leisure attractions. Read the full story Hong Kong luxury retailers adjusting to drop in high-spending Chinese tourists (Dec 18): It was supposed to be the year Hong Kong rebounded onto the world stage, leaving behind an era marred by street clashes, political crackdowns and Covid curbs. Instead, 2023 turned out to be one of the worst for the financial hub in recent memory, at least as far as its markets are concerned. The Hang Seng Index has fallen 15%, losing ground to rivals in Tokyo and Mumbai, and putting it among the biggest decliners globally. Funds raised by initial public offerings are the smallest since the dotcom bubble burst. Home sales are on track to be the lowest for any year since records began in in 2002. Office rents have fallen to levels last seen 13 years ago. Underscoring the malaise, the city has been dubbed the “ruins of an international financial centre” on Chinese social media, a viral label rejected by financial services chief Christopher Hui. The minister said Hong Kong’s status wasn’t a building that could be brought down by pressure. Chief Executive John Lee also weighed in, saying data including bond flows and new insurance premiums show the city remains a leading financial center. Evidence suggests Hong Kong’s position as Asia’s premier hub isn’t at risk right now. It’s home to the regional headquarters of Wall Street banks, while almost half the hedge fund managers in Asia are based there, according to Preqin Ltd data. Hong Kong remains the best place for firms looking to crack China’s economy, and history shows the city bounces back from financial tumult. “The Hong Kong market has lived through two world wars and numerous crises,” said Qi Wang, chief investment officer in wealth management at UOB Kay Hong Kong comeback story turns into terrible year for investors est level in decades, citing a perceived deterioration of minority shareholder rights and independence of the judiciary. Earlier this month, Moody’s Investors Service lowered its outlook for the city, partly due to signs of reduced autonomy in political and legal spheres. The government’s pursuit of activists is challenging ties with the West. Washington and London last week criticised Hong Kong for putting bounties on five dissidents living overseas. Global attention will shift this week to the national security trial of media mogul Jimmy Lai, who is accused of colluding with foreign forces and conspiring to publish seditious material. The imperative for Lee to reverse the decline in investor confidence is increasing. President Xi Jinping tasked him with strengthening Hong Kong’s position as an international financial centre when he visited the former British colony last year for Lee’s inauguration. In a sign that Beijing is growing concerned, officials from China’s Ministry of Finance travelled to the city last week to meet with bankers from firms including HSBC Holdings Plc and Standard Chartered Plc to discuss ways to bolster the city’s hub status. Hong Kong “could do more to project itself and its advantages as a business centre,” said Andrew Seaton, chief executive of China-Britain Business Council, a UK group promoting trade and investment with China. Further deterioration next year would likely increase doubt over the Lee administration’s ability to meet the demands of an international city, and undercut Xi’s efforts to increase foreign investment needed to shore up China’s struggling economy. BY RICHARD FROST Bloomberg BY FARAH MASTER Reuters Hong Kong remains the best place for firms looking to crack China’s economy, and history shows the city bounces back from financial tumult. Hian. “The challenge we face today is immense but nothing we haven’t seen before.” Yet Hong Kong is facing powerful headwinds. Foreign capital is increasingly shunning China at a time when the country’s slowdown is weighing on domestic consumption. Hong Kong’s borrowing costs have surged due to a currency peg with the greenback. Expats and younger locals have left in droves as financial sector jobs dry up and concern mounts over the city’s future under greater oversight by Beijing. Research firms are doubting Hong Kong’s ability to uphold the institutions that underpin its status as a finance hub. Last week, a researcher cut Hong Kong’s corporate governance ranking to the low-

TUESDAY DECEMBER 19, 2023 21 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): Soaring demand for travel this winter is boosting refiners’ margins for making jet fuel in Asia, providing a bright spot for the oil market even as the outlook for other transport fuels weakens. The post-pandemic recovery of air travel is gaining pace in China and India, while the US is expecting to see record travel demand during the holiday season. The boom in travel also coincides with increased demand for kerosene-type fuels, including jet fuel, in the winter. That’s pushing up prices of the aviation oil, making the fuel the most profitable for Asian refiners to produce. The bullishness for jet fuel comes after years of efforts by airlines to restore flight capacity to pre-Covid levels and marks some relief for the oil market, even as traders weigh bearish calls on demand ahead. The International Energy Agency recently cut nearly 400,000 barrels a day from its assessments of consumption growth for the final quarter of the year amid weaker macroeconomic conditions. China’s jet fuel demand is poised to rise to around 860,000 barrels a day by the end of January 2024, according to estimates by BloombergNEF. That’s the highest level since 2020 and a gain of nearly 27% from the same time in 2023, according to the data. The country’s aviation recovery has quickened amid the year-end holiday season, while travel restrictions were further eased last month for some foreign nationals. In India, flying during the festive season as well as rising business travel also helped lift the country’s jet fuel demand past pre-pandemic levels in November, said industry consultant FGE in a report. The Singapore regrade swap — a key indicator of the profitability of producing jet fuel over gasoil — reached the highest levels since 2018 in November, according to data by PVM Oil. It’s currently more than 50% above five-year seasonal averages, according to Bloomberg calculations. Jet fuel demand in Asia excluding China will grow by 150,000 barrels a day in 2024 and reach near 2019 levels in the period, FGE said, adding that it has also boosted its forecast for the regrade swap during the first half of next year. Despite a recovery in aviation, the potential of warmer-than-average temperatures this year could weigh on the use of kerosene, which is used for heating in winter. JP Morgan analysts estimate that a milder winter could cut seasonal kerosene use across the US, Europe and Japan by 500,000 to 700,000 barrels a day, thereby eroding some bullishness for middle distillates. Revival of winter travel turns jet fuel into oil’s bright spot (Dec 18): Recession fears may stalk Britain’s economy once again, with the threat of a downgrade this week to previous gross domestic product (GDP) estimates that had raised hopes that the country may have avoided a contraction. While initial estimates of UK GDP in the three months through September showed zero growth, retail sales have since come in weaker than first thought. That may be all that it would take to shave a couple tenths of a percentage point off of growth when revised data is released on Friday. Even a change that minor could revive talk of a technical recession — defined as two consecutive quarters of contraction — in the second half of the year. It would be a bleak backdrop for Prime Minister Rishi Sunak’s desire to win reelection next year and also fan speculation the Bank of England (BOE) will soon turn towards cutting interest rates. Almost all forecasters expect no change to the initial estimate, although some, including Dan Hanson, senior UK economist at Bloomberg Economics, see a chance of a downgrade. “The ONS [Office for National Statistics] is likely to confirm that GDP stagnated in the third quarter, but we do think there is some risk output is revised lower,” Hanson said. “The first estimate showed GDP fell, just not by enough to tip the rounding, and since then the retail sales data has been revised down. The statistics wouldn’t need to find much more weakness for GDP to register a 0.1% fall.” While recent data for the eurozone has turned decisively darker, fanning talk of rate cuts and recession, the picture in the UK is much more mixed. Optimism in business and consumer surveys contrast with a dour picture painted by mounting insolvencies, stalling retail sales in the run-up to Christmas and a warning of slowing demand from the BOE’s network of agents. “Growth is likely to remain marginal over the next year, meaning that it wouldn’t take much of a deterioration in sentiment or economic conditions to tip the UK into a recession,” said Thomas Pugh, economist at RSM UK. It leaves the UK’s near-term outlook ranging from tepid growth to a minor recession. Friday’s report on GDP will determine whether there was a downturn in the third quarter, with a bigger-than-expected contraction in October’s figures posted last week pointing towards a poor fourth quarter. There are plenty of signs that Britain will pull through without a recession. Easing inflation and the return of real wage growth for the first time in almost two years are improving consumer and business confidence. UK recession risk returns with data signalling possible downgrade BY TOM REES Bloomberg BY ELIZABETH LOW Bloomberg

TUESDAY DECEMBER 19, 2023 22 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): SenseTime Group Inc plunged its most in more than a year after its co-founder’s surprise death spooked investors already grappling with the fallout from slowing growth and US sanctions. The Chinese artificial intelligence (AI) firm slid as much as 18% in Hong Kong on Monday, the biggest loss since July 2022. SenseTime disclosed that co-founder and major shareholder Tang Xiao’ou died on Friday (Dec 15) after an illness. Born in 1968, the Massachusetts Institute of Technology graduate and Hong Kong professor was regarded as a pioneer in China’s AI sector, helping create one of the nation’s leaders in computer vision. His company, earlier backed by Alibaba Group Holding Ltd, listed in Hong Kong in one of the most highly anticipated debuts of 2021. Tang had a 21% stake in SenseTime, according to the firm’s 2022 annual report. His net worth last stood at US$1.1 billion (RM5.14 billion), the Bloomberg Billionaires Index shows. The Chinese firm’s growth however has slowed dramatically in the face of rapidly intensifying competition. The US government blacklisted the company in 2019 on allegations related to human rights violations in Xinjiang. That restricted its access to capital and crucial US tech components, compounded in recent months by new curbs on the sale of advanced AI chips and chipmaking equipment to Chinese firms. Its shares have fallen in recent weeks after short-seller Grizzly Research accused the firm of inflating revenues, which SenseTime has denied. Before Monday, the stock traded at HK$1.26 (75 sen) — less than a third of its listing price. The stock regained some of its losses Monday morning and traded about 11% lower. SenseTime’s focus this year turned from its traditional strengths in facial recognition to generative AI. It was among the first Chinese tech firms to receive government approval to publicly roll out ChatGPT-like services. China’s AI arena has experienced an influx of capital and talent. But the rivalry is fierce as startups and big companies from Baidu Inc to SenseTime compete to develop their own solutions. SenseTime was considering raising funds and carving out its autonomous driving and healthcare units, Bloomberg News reported this month. In its statement, SenseTime did not specify Tang’s illness. “The spirit and achievements of Prof Tang will live on. The directors and all employees of the company are committed to completing his mission, never forgetting the company’s original aspiration, and forging ahead,” it said. SenseTime plunges after death of China AI firm’s co-founder HONG KONG (Dec 18): Tencent Holdings is relying on one-time bitter rival ByteDance to promote its most important video game release in years, in a sign of warming relations as well as intensifying competition as China’s gaming industry returns to growth. Tencent released on Friday mobile party game DreamStar that it hopes to challenge Eggy Party, a similar offering from NetEase which has become a surprise hit this year with 100 million monthly active users. Analysts expect DreamStar to earn up to six billion yuan (RM3.94 billion) in its first year, while they forecast Eggy Party, which owes much of its success to advertising on ByteDance platforms, to earn eight billion yuan for NetEase this year. In a battle to defend its status as China’s biggest gaming firm, Tencent has chosen to promote Dreamstar on ByteDance’s popular advertising platforms despite the two’s rancorous history in barring one another from their platforms. About 38% of Tencent ads for DreamStar were put on ByteDance’s online ad service Pangolin in the last 30 days, making it the top ad service Tencent has spent on for the game, according to data tracking firm DataEye. Its decision to rely heavily on Pangolin is remarkable considering that Tencent has its own ad network and various promotion channels within its product ecosystem. Tencent has put only 12% of DreamStar ads on its own ad network Youlianghui, according to DataEye. The advertising layout is part of Tencent’s plans for a 1.4 billion yuan investment to build out DreamStar’s ecosystem to ensure its success. That strategy has also seen Tencent begin to let video game live-streamers to Tencent turns to ByteDance in gaming showdown with NetEase stream on ByteDance platforms. Z h a n g D a x i a n , C h i n a ’s t o p live-streamer who became famous through playing Tencent’s Honor of Kings game, started his channel on a ByteDance platform earlier this month and previewed DreamStar, a scenario unthinkable to many fans just a year ago. For years, Tencent and ByteDance were locked in a series of lawsuits against each other. In 2021, ByteDance sued Tencent for restricting users from sharing content from Douyin — TikTok’s sister app in China — on Tencent’s apps, citing anti-monopoly law. In the same year, Tencent sued ByteDance for featuring footage of Honor of Kings on a ByteDance platform, citing copyright infringement. The apparent thaw in their relationship comes as ByteDance recently decided to wind down its gaming business to focus on its core platform operations, marking a retreat from its competition with Tencent and NetEase in gaming. China’s video games market returned to growth this year as domestic revenue rose 13% to 303 billion yuan, putting Beijing’s eight-month industry crackdown two years ago in the rear-view mirror. BY JOSH YE Reuters BY EDWIN CHAN Bloomberg SenseTime shares slid as much as 18% in Hong Kong on Monday, the biggest loss since July 2022. Its co-founder and major shareholder Tang Xiao’ou died on Friday after an illness.

TUESDAY DECEMBER 19, 2023 23 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): Delivery Hero SE is closing tech hubs in Taiwan and Turkiye and will cut jobs at it headquarters in Berlin, the German food delivery company said in a statement on Monday. The job cuts mean the company has reduced its workforce by about 13% during the course of 2023, including a round of layoffs in January, Delivery Hero said. The hub closures and cuts are part of the company’s strategy to increase the efficiency and quality of Delivery Hero’s main platform and Quick Commerce businesses, chief executive officer Niklas Oestberg said in the statement. Delivery Hero’s Asian business, which is its largest market, has stagnated after pandemic-era lockdowns eased. In September, Delivery Hero said it is in talks to sell the Foodpanda brand in several southeast Asian nations, including Singapore, Malaysia, the Philippines and Thailand. Delivery Hero closes hubs in Taiwan, Turkey in push to cut costs Singapore exports swing to growth for first time in 14 months (Dec 18): Japanese chip gear-maker Kokusai Electric Corp is expanding its staff in China in anticipation of an increase in demand from the world’s largest semiconductor market in 2024. Chief executive officer Fumiyuki Kanai, who presided over the company’s initial public offering in October, foresees sustained investment in capacity in China and plans to expand his local support teams there to better serve clients. Kokusai is seeking to extend the 66% rally in its stock price since its IPO less than two months ago. China’s buildup is driven in part by efforts to localize chip production at a time the US is erecting higher barriers on the export of advanced chips and chip gear to a geopolitical rival. Chinese companies have poured billions into factories for socalled legacy chips that US sanctions don’t prohibit, but remain critical components in everything from smartphones to electric vehicles. “Countless small-scale fabrication plants are springing up like mushrooms in China,” Kanai, 67, told Bloomberg News in an interview. “The Chinese government is providing aggressive support to the industry for activities including the interluster demand elsewhere. It expects that percentage will rise to just below 50% in coming months, though China’s historical contribution to Kokusai’s revenue was about 30%. “We have locations in China only to provide after-sale services and have no plans to do production or research there,” Kanai said. “We will increase personnel to cover the local demand.” Kokusai is a key player in what’s known as film deposition, the step in semiconductor production when a layer of chemicals is deposited on silicon wafers before they are etched with circuits. The company’s machines use batch atomic layer deposition technology, a sophisticated technique that helps with efficiently producing chips with multiple layers. The company’s main customers are NAND flash memory makers — an area where demand has been slumping. The CEO agreed the memory market is challenging and said the company plans to diversify its product portfolio and perhaps make acquisitions to expand into adjacent markets. While no specific targets are on his radar, the company will focus on companies that would bring synergies with Kokusai’s current products. (Dec 18): Singapore’s exports returned to growth for the first time in more than a year, although it was hardly a sign of recovery in external demand. Official data Monday showed non-oil domestic exports grew 1% in November, slower than the median expectation for a 1.5% gain in a Bloomberg survey. The exJapan’s Kokusai aims to build on 66% rally as China demand booms BY TAKASHI MOCHIZUKI & YUKI FURUKAWA Bloomberg BY AGATHA CANTRILL Bloomberg BY KARTHIKEYAN SUNDARAM & KEVIN VARLEY Bloomberg net-of-things, smartphones and personal computers.” Tapped to lead the company after KKR & Co acquired it from Hitachi Ltd in 2018, Kanai said he will prioritize shareholder returns, after making enough investments for production and next-generation tool development. Stock buybacks are an option the company will actively consider, he said. China’s investments will be across memory, logic and power chips at 28-nanometers and larger, Kanai said. The country accounts for more than 40% of the Tokyo-based company’s revenue today, an unusually high level due in part to lackpansion was mainly because of a low base from year-ago period, according to Enterprise Singapore. Total trade increased in November, supported by growth in exports even as imports declined. Still, the data offered little reason for cheer about the prospect of durable trade recovery. Non-oil domestic exports to the top markets as a whole declined in November, dragged down by falling shipments to Taiwan, bulk of the European Union and Indonesia. Exports to the US, China, Thailand and Hong Kong rose, with even some of those gains staying well below monthly highs seen before the slump in 2022-2023. The increase in the headline number was driven by non-electronics products as total chemicals and pharmaceuticals rose. BLOOMBERG

TUESDAY DECEMBER 19, 2023 24 THEEDGE CEO MORNING BRIEF WORLD That’s the view of market participants polled by Bloomberg, who on balance see the currency rallying next year as the Bank of Japan exits the world’s last negative interest rate regime and its global peers cut borrowing costs. While projections for a 2023 yen rebound started going wrong as early as February, forecasters see key differences this time around. A year ago traders were speculating that a new chief at the BOJ might unwind ultra-easy monetary policy. Now they’re aligned with economists who say a shift will come within months, and the central bank’s own leadership has publicly discussed the implications of a future exit. “The situation won’t disappoint the yen bulls on this occasion,” said Shoki Omori, a strategist at Mizuho Securities Co in Tokyo, who sees the prolonged slump in the currency coming to an end. “There’s not a lot of room for the BOJ to tighten policy, but they do seem determined to rip up negative interest rates.” The picture outside Japan also looks clearer than it did 12 months ago. Whereas traders last year were talking about US interest rates likely peaking in 2023, projections this month from Federal Reserve policymakers point to 75 basis points of cuts in 2024. The median of forecasts compiled by Bloomberg indicates the yen will strengthen to 135 versus the dollar by the end of 2024 as the wide interest gap between the US and Japan narrows. Their overly bullish projection about a year ago was for the pair to trade around 131 at end-2023. The yen was down 0.2% at 142.43 at 9:16 a.m. in Tokyo on Monday. “The Federal Reserve ultimately rose by 100 basis points in 2023, while the Bank of Japan maintained its negative key rate, which was a major headwind for the yen,” said Spencer Hakimian, chief executive officer of Tolou Capital Management in New York. He sees the “reverse scenario” playing out in 2024 and expects the yen to reach about 135 by the end of the year. The 10-year US Treasury yield, which has been a major driver of the dollar-yen’s direction this year, has dropped about 50 basis points over the past month, setting the scene for a change in the currency market. “It does seem that bond yields have now peaked, the Fed has finished hiking and the dollar has further to fall in 2024,” said Kit Juckes, chief foreign-exchange strategist at Societe Generale in London. BY YUMI TESO & DAISUKE SAKAI Bloomberg Big currency flop of 2023 is top pick for year ahead, again ly and estimated the currency to reach around 132 at end-2024. Below is more commentary from investors and strategists on the yen for the year ahead. Yujiro Goto, head of Japan FX strategy at Nomura Securities Co: “The Fed and the ECB may start delivering rate cuts around June, supporting the appreciation path for the yen. The US economy falling into recession would boost the chance of dollar-yen moving toward the 130-135 area, while a soft-landing scenario may limit the pair’s decline to around 140.” Takeshi Yokouchi, senior portfolio manager at Sumitomo Mitsui DS Asset Management Co: “Dollar-yen is sure to face downward pressure if the major central banks start cutting rates and the BOJ shifts policy away from the negative interest rate. However, the decline is likely to be somewhat limited, unlike the yen’s rise to 100 per dollar seen in the past because the economic recovery in Japan does not seem to have the same strength.” Hiroyuki Machida, director of Japan FX and commodities sales at Australia & New Zealand Banking Group: “The dollar will probably weaken due to lower US yields. Even if the BOJ won’t tighten policy amid uncertainties caused by rate cuts in the US, the yen can rise solely because of the direction of US monetary policy.” Kenta Tadaide, chief FX strategist at Daiwa Securities Co: “The Fed will probably start cutting borrowing costs around the summer of 2024 when the economy goes into recession, pushing dollar-yen below 130. The risk to this scenario is that the US achieves a soft landing, keeping favorable sentiment in the US, which maintains yen-selling pressure and keeps the dollar-yen above 140.” Teppei Ino, Tokyo head of global markets research at MUFG Bank Ltd: “With a US presidential election coming up next year, public sentiment will likely increase about supporting economic growth, and in that case the Fed is likely to deliver cuts. The BOJ is expected to start normalizing policy in January.” The median of forecasts compiled by Bloomberg indicates the yen will strengthen to 135 versus the dollar by the end of 2024 as the wide interest gap between the US and Japan narrows. “The yen should make substantial gains.” Yet there’s still room for a lot of volatility. The yen rallied almost 4% in just one day earlier this month amid a short-lived spike in bets that the BOJ would hike rates at conclusion of its Dec. 18-19 meeting. It reversed course over the following two days before strengthening again. Policy gatherings in Tokyo in January and March provide more triggers for speculation in the buildup to an April decision that is seen by a majority of BOJ watchers as the most likely time for change. While inflation has remained above the central bank’s 2% target for more than a year and half, officials appear keen for more evidence of solid wage growth, which may come during pay negotiations early next year. “We believe that there is sufficient longer-term structural improvement in the economy,” said Steven Barrow, the London-based head of G-10 strategy at Standard Bank, which has a one-year forecast of 125 for the yen. Barrow sees the currency appreciating over the longer term regardless of whether rate differentials narrow. He cited positive change in Japan including the end of deflation and the stock market rally. The benchmark Topix equity gauge has soared about 23% so far this year. Asset managers have trimmed their bearish bets against the yen in recent months as sentiment began to gradually shift, according to data from the Commodity Futures Trading Commission through Dec. 12. Hedge funds remain skeptical. Daisuke Karakama, chief market economist at Mizuho Bank Ltd., noted that Japan’s trade deficit means there will continue be people in the market looking to sell the yen, even if the broad trend is for gains. He’s among those predicting a ral-

TUESDAY DECEMBER 19, 2023 25 THEEDGE CEO MORNING BRIEF WORLD (Dec 18): More companies are tapping blockchain-based private credit as they hunt for financing in a world of elevated interest rates, sparking a partial revival in a sector that slumped amid last year’s crypto crisis. Active private loans via digital ledgers are up 55% since the start of 2023 to about US$408 million (RM1.9 billion) as of Nov 28, according to RWA.xyz, a platform that tracks the debt. That’s still lower than a near US$1.5 billion peak last June — and a fraction of the booming US$1.6 trillion traditional market for private credit. While borrowing costs vary deal-bydeal, some blockchain protocols charge less than 10% whereas traditional providers are seeking double-digit rates in the current environment, based on figures from RWA. xyz and private-credit lenders. Champions of digital ledgers say they make deals and repayments transparent since blockchains are open to public scrutiny, and that software called smart contracts can monitor for stress and automatically recall loans or collateral. “Increased transparency and liquidation mechanisms onchain have reduced the risk of lending,” said Agost Makszin, co-founder of Lendary (Asia) Capital, an alternative investment management group. “This has likely resulted in lower borrowing rates compared with traditional private credit, which is often slower and has a longer liquidation process.” Traditional private credit has been labelled too opaque by the likes of bond giant Pimco and the European Central Bank. The industry has tripled in size since Private credit rebounds in crypto sector with 55% jump in 2023 (Dec 18): FTX Trading Ltd unveiled its latest proposal for returning billions of dollars to customers and creditors, kicking off a final round of potential squabbles about how best to end the bankruptcy case of the fraud-tainted crypto firm. The reorganisation plan left some of the most important questions unanswered, including whether FTX will restart its defunct crypto exchange, how the company will estimate the value of some digital tokens and how much creditors can expect to get back. Next year, the plan will be sent to creditors for a vote — likely with key details added — before it goes to US Bankruptcy Judge John Dorsey for final approval. The major creditor and customer groups that have been involved in the Chapter 11 case have agreed to the broad outlines of the plan. The payout plan calls for billions of dollars to be distributed as cash after much of the firm’s cryptocurrencies have been liquidated. Last month, FTX founder Sam Bankman-Fried was convicted of orchestrating a massive fraud that led to the collapse of his FTX exchange. The company filed for bankruptcy last year after Bankman-Fried agreed to turn over control of his empire to restructuring professionals. Since then, the advisers have been tracking down assets and trying to untangle a complex web of debt owed to various creditors, including customers who put cash and crypto on the trading platform. The case is FTX Trading Ltd, 22- 11068, US Bankruptcy Court for the District of Delaware. FTX files plan to end bankruptcy, pay crypto creditors billions BY STEVEN CHURCH Bloomberg BY KARI LINDBERG Bloomberg 2015, providing loans for smaller companies, buyout financing, real estate and infrastructure. Investors are clamoring for exposure to the asset class. In the blockchain version, protocols such as Centrifuge, Maple Finance and Goldfinch can pool or provide access to investor funds, typically using the ethereum blockchain and stablecoins like USDC that are pegged to the dollar. Borrowers use the funds under terms codified in smart contracts. Protocols can take steps such as structuring loans or collateralizing them with real-world assets to bolster investor confidence. RWA.xyz data shows that the consumer, auto and fintech sectors account for the bulk of active loans by value, followed by real estate, carbon projects and crypto trading. “We’ll try and leverage the fact that we use the blockchain and smart contracts to manage our loans, take out costs and fund loans quicker, to try and get a competitive edge,” said Maple Finance’s co-founder Sidney Powell. Turbulent history Maple Finance was among the digital-asset outfits buffeted by last year’s US$1.5 trillion crypto rout. The crash bankrupted a slew of businesses — including Sam Bankman-Fried’s FTX empire — and wiped out leveraged positions within the crypto ecosystem that were chasing too-good-tobe-true speculative yields without due care for risk. The debacle sullied the idea of crypto lending, even if the losses stemmed from so-called decentralised lending across digital-asset projects rather than from real-world enterprises. The total value of decentralised lending has climbed 120% year-to-date to about US$22 billion but remains far below the record high of US$54 billion hit in April 2022, DefiLlama data show. The digital-asset industry is recovering from last year’s turmoil but has other problems, such as uneven access to banks, which are wary of crypto’s role in illicit activity. The skepticism complicates the task of shifting between tokens and fiat currency. Traditional finance is also uncertain about digital ledgers and potential security risks since blockchains are relatively new and complex. Another obstacle is that the crypto lending market lacks a credit rating system, unlike traditional finance, which prevents a full understanding of risks, said Tom Wan, a researcher at digital-asset fund provider 21.co. Read the full story BLOOMBERG

TUESDAY DECEMBER 19, 2023 26 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (Dec 15, 2023) CAPESIZE The capesize market experienced a dynamic week, with distinct developments in the Pacific and Atlantic regions. The Pacific market started the week on a high note, driven by port closures in North China due to weather and the presence of all three major players from West Australia to China, leading to a robust rise of US$1,155 on the BCI 5TC to US$36,475. Despite a setback mid-week due to alleviated port delays, the Pacific rebounded on Thursday with the closure of three more ports in North China and continued major player activity, resulting in a positive shift in C5 rates. In contrast, the Atlantic faced challenges with sluggish activity, widening bid/offer gaps, and weaker fixtures from South Brazil and West Africa to the Far East. Overall, the BCI 5TC closed the week at US$34,107, reflecting the market’s regional fluctuations and ongoing uncertainties. PANAMAX The beginning of the week saw a slight correction across most areas with a good amount of fresh tonnage and limited enquiry seeing rates slip further. The North Atlantic lacked fresh impetus, although as the week progressed there remained demand from the South Atlantic and some saw a tightness of tonnage supply for January dates, which helped maintain a fairly even level. An 80,000-dwt open India fixed a trip via EC South America for a trip to Singapore – Japan at US$14,000, while an 81,000-dwt fixed a front haul basis delivery Gibraltar trip via US Gulf redelivery Singapore-Japan at US$29,000. From Asia, little excitement as limited fresh enquiry from Indonesia and NoPac came into play. A 74,000-dwt open China fixed a trip via Indonesia redelivery Japan at US$15,000. Period action was limited, although an 82,000-dwt open Singapore fixed 6/8 months trading redelivery worldwide at US$17,000. ULTRAMAX/SUPRAMAX A rather positional week ensued for the sector, but overall sentiment remained rather poor. In the Atlantic, slower demand from key areas such as the US Gulf saw rates slip from the recent highs while in the South Americas, a relatively tight tonnage supply saw rates maintain their levels. From Asia, little fresh enquiry appeared in the north and NoPac regions, which saw some tonnage ballast towards South Asia where cargo enquiry remained steady, but rates generally remained flat. Period activity slowed, with a 61,000-dwt coming open worldwide in February-March 2024 was heard fixed for 13-16 months trading at 120% of BSI. In the Atlantic, a 63,500-dwt was heard fixed delivery West Africa for a trip to China at US$32,000 with nickel ore. From Asia, a 63,000-dwt open China fixed an Australian round redelivery Singapore-Japan at US$12,00. From the Indian Ocean, a 63,000-dwt fixed delivery South Africa for a trip to India-Bangladesh at US$23,000 plus US$250,000 ballast bonus. HANDYSIZE A week of positivity across the Atlantic with continued limited tonnage availability the main driving force. Late improvements were seen for owners on the Continent, with a 38,000-dwt opening prompt in Rotterdam fixing for a trip to the Eastern Mediterranean with an intended cargo of scrap at US$27,000. The US Gulf similarly saw further improvements this week with a 39,000-dwt fixing from Panama City to the UK-Continent with an intended cargo of wood pellets at US$30,000. Prompt vessels in the South Atlantic were in high demand and brokers spoke of more voyage requirements for Far East and WC South America destinations, with a 37,000-dwt opening in Praia Mole was fixed for a trip basis delivery Recalada to WC South America with an intended cargo of grains at US$45,000 to a grain house. In Asia, the market was more subdued in terms of visible activity and levels remained stable, with a 43,000- dwt fixed from Indonesia to China with coal in the mid US$13,000s. CLEAN LR2 LR’s in the MEG saw freight climb for the second week with plenty of activity working the balance of 2023 cargoes this week. The 75Kt MEG/Japan TC1 index gained another 18.61 points to end up at WS149.44. The 90kt MEG/UK-Continent TC20 run to the UK-Continent also hopped up US$562,500 to US$4,156,250. West of Suez, Mediterranean/East LR2’s on TC15 also optimistically climbed US$283,000 this week to US$3.7 million. LR1 In the MEG, LR1’s followed the path of their larger compatriots. The 55kt MEG/ Japan index of TC5 jumped up 21.57 points to WS151.88 and the 65kt MEG/ UK-Continent on TC8 ascended to the tune of US$285,000 to US$3.14 million. On the UK-Continent, the 60Kt ARA/ West Africa TC16 index held stable with and incremental 5.31 point climb to WS203.75. MR MR’s in the MEG looked to have peaked early this week at around the WS243 mark for a TC17 run the index has since dipped back down to WS234.29. UK-Continent MR’s were muted early this week and the Baltic indices both began to drop, although by differing amounts. The 37kt ARA/US-Atlantic coast of TC2 bottomed out around WS190 and following some activity later in the week has since rebounded up to WS197 at time of writing. On a TC19 run (37kt ARA/West Africa) the index held stable in the mid-WS230’s. Read the full report

TUESDAY DECEMBER 19, 2023 27 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) TOP GLOVE CORP BHD 337.2 0.060 0.960 6.08 7,687.8 CAREPLUS GROUP BHD 213.7 0.115 0.465 -2.11 271.8 ZEN TECH INTERNATIONAL BHD 147.4 0.000 0.020 0.00 52.6 CRITICAL HOLDINGS BHD 135.7 0.220 0.570 62.85 211.9 MINETECH RESOURCES BHD 88.3 0.010 0.130 136.36 198.8 LEFORM BHD 70.4 -0.005 0.385 86.53 570.2 HLT GLOBAL BHD 69.4 0.065 0.255 6.25 197.7 ICONIC WORLDWIDE BHD 64.7 0.020 0.140 7.69 78.7 LKL INTERNATIONAL BHD 64.1 0.030 0.215 -25.55 83.4 BINA PURI HOLDINGS BHD 64.1 0.000 0.095 137.50 320.1 VELESTO ENERGY BHD 61.3 0.005 0.230 53.33 1,889.6 HEXTAR HEALTHCARE BHD 60.9 0.070 0.330 -10.81 330.6 ADVENTA BHD 59.0 0.095 0.410 -26.97 125.3 WIDAD GROUP BHD 55.7 -0.005 0.465 8.14 1,439.9 NEXGRAM HOLDINGS BHD 46.6 0.005 0.035 -50.00 22.7 SARAWAK CABLE BHD 46.5 0.010 0.245 276.92 97.8 SUPERMAX CORP BHD 46.0 0.090 1.010 16.09 2,601.9 SARAWAK CONSOLIDATED 44.6 -0.005 0.845 482.76 541.0 TWL HOLDINGS BHD 43.3 0.000 0.035 0.00 172.5 YTL CORP BHD 40.3 -0.050 1.860 220.69 20,393.8 Data as compiled on Dec 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA HOLDINGS BHD 0.010 100.00 2,813.3 -33.33 64.5 CRITICAL HOLDINGS BHD 0.570 62.86 135,701.4 62.85 211.9 COMPUGATES HOLDINGS BHD 0.015 50.00 150.0 50.00 82.5 HLT GLOBAL BHD 0.255 34.21 69,410.2 6.25 197.7 METRONIC GLOBAL BHD 0.020 33.33 370.4 0.00 30.6 CAREPLUS GROUP BHD 0.465 32.86 213,726.0 -2.11 271.8 ADVENTA BHD 0.410 30.16 58,996.5 -26.97 125.3 HEXTAR HEALTHCARE BHD 0.330 26.92 60,852.9 -10.81 330.6 KANGER INTERNATIONAL BHD 0.060 20.00 38,228.0 50.00 39.0 PAN MALAYSIA HOLDINGS BHD 0.090 20.00 30,772.5 28.57 83.6 NEXGRAM HOLDINGS BHD 0.035 16.67 46,584.7 -50.00 22.7 ICONIC WORLDWIDE BHD 0.140 16.67 64,692.4 7.69 78.7 LKL INTERNATIONAL BHD 0.215 16.22 64,100.8 -25.55 83.4 INDUSTRONICS BHD 0.040 14.29 4,838.7 -46.67 28.3 COMFORT GLOVE BHD 0.535 12.63 28,981.0 10.31 309.8 MTOUCHE TECHNOLOGY BHD 0.045 12.50 2,781.1 -10.00 41.7 OCEANCASH PACIFIC BHD 0.345 11.29 1,223.5 2.99 90.0 PERMAJU INDUSTRIES BHD 0.050 11.11 1,230.1 11.11 97.3 CSH ALLIANCE BHD 0.050 11.11 448.0 25.00 69.1 IGB BHD 2.450 10.86 17.0 59.75 3,303.5 Data as compiled on Dec 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) TECHNA-X BHD 0.010 -33.33 1,307.8 -60.00 22.1 G3 GLOBAL BHD 0.020 -20.00 1,157.1 -33.33 75.5 SAUDEE GROUP BHD 0.025 -16.67 511.5 -44.44 37.2 MQ TECHNOLOGY BHD 0.025 -16.67 16,300.2 -50.00 36.8 SC ESTATE BUILDER BHD 0.030 -14.29 530.0 -33.33 32.2 XOX NETWORKS BHD 0.030 -14.29 120.0 0.00 34.1 ALDRICH RESOURCES BHD 0.035 -12.50 748.6 16.67 39.0 BSL CORP BHD 0.035 -12.50 1,113.5 -48.22 67.6 DOLPHIN INTERNATIONAL BHD 0.155 -11.43 2,399.3 -38.00 20.7 GREEN PACKET BHD 0.040 -11.11 1,412.1 -27.27 79.8 SAPURA ENERGY BHD 0.045 -10.00 10,308.0 28.57 719.1 CLASSITA HOLDINGS BHD 0.045 -10.00 4,442.7 -87.67 55.5 SMTRACK BHD 0.045 -10.00 32,265.5 -10.00 55.0 EUROSPAN HOLDINGS BHD 1.310 -9.66 1.0 15.93 58.2 TRIVE PROPERTY GROUP BHD 0.050 -9.09 409.9 -28.57 63.2 CITRA NUSA HOLDINGS BHD 0.050 -9.09 50.0 -23.08 36.0 HANDAL ENERGY BHD 0.105 -8.70 30,706.7 -32.26 28.0 PROTASCO BHD 0.210 -8.70 1,925.2 10.53 101.2 INFOLINE TEC GROUP BHD 0.745 -8.02 6,110.4 -12.35 270.6 JADI IMAGING HOLDINGS BHD 0.065 -7.14 449.9 -23.53 91.0 Data as compiled on Dec 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) HEINEKEN MALAYSIA BHD 22.780 -0.360 287.1 -9.60 6,881.8 PETRONAS GAS BHD 17.500 -0.240 918.3 2.22 34,627.8 KLCCP STAPLED GROUP 7.160 -0.140 47.0 6.71 12,926.2 EUROSPAN HOLDINGS BHD 1.310 -0.140 1.0 15.93 58.2 MALAYSIA AIRPORTS HOLDINGS 7.440 -0.120 2,404.5 13.41 12,414.0 UWC BHD 3.560 -0.110 1,337.8 -11.44 3,921.9 FAR EAST HOLDINGS BHD 3.500 -0.100 78.4 -5.41 2,078.4 DUTCH LADY MILK INDUSTRIES 22.600 -0.100 51.3 -25.26 1,446.4 KOBAY TECHNOLOGY BHD 1.370 -0.080 3,372.0 -49.63 444.1 BRITISH AMERICAN TOBACCO 9.200 -0.080 78.3 -18.00 2,626.9 GLOBETRONICS TECHNOLOGY 1.720 -0.080 14,588.6 49.62 1,156.9 SHANGRI-LA HOTELS MALAYSIA 2.170 -0.080 1,819.3 -37.10 954.8 AIRASIA X BHD 1.930 -0.080 2,311.1 238.60 862.9 UMS HOLDINGS BHD 1.920 -0.080 4.0 -3.01 78.1 GENTING BHD 4.630 -0.070 4,483.9 3.35 17,828.2 YINSON HOLDINGS BHD 2.450 -0.070 3,023.9 0.82 7,121.8 INFOLINE TEC GROUP BHD 0.745 -0.065 6,110.4 -12.35 270.6 CRESCENDO CORP BHD 2.120 -0.060 249.9 82.76 592.4 GAMUDA BHD 4.590 -0.060 5,277.4 22.40 12,498.5 MR DIY GROUP M BHD 1.440 -0.050 12,200.2 -28.00 13,597.2 Data as compiled on Dec 18, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) NESTLE MALAYSIA BHD 119.400 2.200 63.9 -14.71 27,999.3 RAPID SYNERGY BHD 28.000 1.740 283.2 75.44 2,993.1 MALAYSIAN PACIFIC INDUSTRIES 28.500 0.520 237.6 -0.90 5,668.5 HEXTARTECHNOLOGIES SOLUTIONS 22.500 0.500 60.0 31.89 2,894.6 PPB GROUP BHD 14.580 0.280 217.3 -16.40 20,741.5 PERTAMA DIGITAL BHD 2.930 0.280 8,921.3 66.48 1,284.0 FRASER & NEAVE HOLDINGS BHD 27.500 0.260 66.2 27.43 10,086.4 ALLIANZ MALAYSIA BHD 18.700 0.240 133.1 32.06 3,328.0 IGB BHD 2.450 0.240 17.0 59.75 3,303.5 CRITICAL HOLDINGS BHD 0.570 0.220 135,701.4 62.85 211.9 BURSA MALAYSIA BHD 6.910 0.190 930.2 3.91 5,592.3 BATU KAWAN BHD 20.480 0.180 0.7 -8.16 8,056.4 PETRONAS DAGANGAN BHD 22.240 0.160 160.7 -2.66 22,094.4 NEW HOONG FATT HOLDINGS BHD 3.390 0.140 1.9 18.12 280.3 CAREPLUS GROUP BHD 0.465 0.115 213,726.0 -2.11 271.8 CIMB GROUP HOLDINGS BHD 5.940 0.110 24,332.9 2.41 63,350.7 ADVENTA BHD 0.410 0.095 58,996.5 -26.97 125.3 SUPERMAX CORP BHD 1.010 0.090 45,977.1 16.09 2,601.9 HARRISONS HOLDINGS MALAYSIA 8.300 0.090 4.5 25.19 568.4 SCIENTEX BHD 3.840 0.080 1,090.9 19.25 5,956.9 Data as compiled on Dec 18, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 37,305.16 56.81 0.15 S&P 500 * 4,719.19 -0.36 -0.01 NASDAQ 100 * 16,623.45 85.62 0.52 FTSE 100 * 7,576.36 40.77 0.54 AUSTRALIA 7,426.36 -16.33 -0.22 CHINA 2,930.80 -11.75 -0.40 HONG KONG 16,629.23 -162.96 -0.97 INDIA 71,292.19 -191.56 -0.29 INDONESIA 7,119.53 -71.46 -0.99 JAPAN 32,758.98 -211.57 -0.64 KOREA 2,566.86 3.30 0.13 PHILIPPINES 6,475.50 -2.94 -0.05 SINGAPORE 3,113.23 -3.28 -0.11 TAIWAN 17,652.03 -21.84 -0.12 THAILAND 1,393.41 2.38 0.17 VIETNAM 1,091.88 -10.42 -0.95 Data as compiled on Dec 18, 2023 * Based on previous day’s closing Source: Bloomberg CPO RM 3,733.0041.00 OIL US$ 76.24-0.31 RM/USD 4.6943 RM/SGD 3.5273 RM/AUD 3.1594 RM/GBP 5.9471 RM/EUR 5.1262

CEOMorningBrief TUESDAY, DECEMBER 19, 2023 ISSUE 688/2023 theedgemalaysia.com

Malaysian Paper www.thesun.my RM1.00 PER COPY RM1 TUESDAY DEC 19, 2023 SCAN ME No. 8418 PP 2644/12/2012 (031195) DSP charged with murder of schoolboy Report on — page 2 Health Ministry confident of containing Covid-19 situation with five-point strategy. Senior police officer accused of ramming car into 17-year-old motorcyclist, dragging victim along road. Ground shifting at Puchong landslide site Police say soil movement detected at location as work to reinforce ground in affected area with metal piles resumes. No MCO for now Report on — page 6 - Report on page 5 Vincent Tan, Indonesian partner launch OK Vision Malaysia’s latest subscriber-based television and content distributor offers 35 channels through direct-to-home services. Report on — page 3 Residents from one of the families ordered to evacuate their homes in Taman Wawasan leaving the area after returning briefly to retrieve personal belongings yesterday. (Inset) The road in front of several houses that slid down a slope during the incident. – ADIB RAWI YAHYA THESUN

TUESDAY | DEC 19, 2023 2 Ministry confident of managing Covid-19 cases PUTRAJAYA: Despite a rise in the number of Covid-19 cases in Malaysia, the Health Ministry is confident that it will be able to manage the numbers without having to introduce restrictions. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the ministry has prepared a five-point strategy to deal with the situation. These include early case detection via the Heightened Alert System, community tracing via test, report, isolate, inform and seek (TRIIS) system, monitoring of health facilities, effective risk communication and digitisation of the health system via the MySejahtera app. Dzulkefly said he is aware of the concerns among Malaysians about the rising number of Covid cases in the country and has expressed hope oHealth minister announces five-point strategy to deal with situation, without reinstating movement control order █ BY ANDREW SAGAYAM [email protected] Local white rice shortage eases KUALA LUMPUR: The year-end rice harvest by the Muda Agricultural Development Authority (Mada) has helped to ease the local white rice supply shortage. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said local rice supply has not yet fully stabilised, as consumer demand remains high. “There is still (a shortage of local white rice) but it has eased. Our rice (self-sufficiency rate) is only 65%. Local rice is in demand because the price of imported rice is high,” he said after visiting the AU2 Taman Keramat Community Garden yesterday. He also encouraged city residents to get involved in food security efforts by having community gardens in appropriate open spaces. Mohamad said open spaces near residential areas could be utilised by planting crops such as chilli and lemongrass, that would benefit local communities, Bernama reported. He added that the government, through the Prime Minister’s Department, has allocated RM1 billion for community development projects, including agriculture. Mohamad advised those interested in urban farming to obtain approval from their Mohamad trying his hand at threshing padi at the event yesterday. – BERNAMAPIC respective local authorities. PM highlights hypocrisy of nations championing human rights TOKYO: In an exclusive interview with Japan’s leading media group The Nikkei, Prime Minister Datuk Seri Anwar Ibrahim once again highlighted the hypocrisy of “so-called countries that promote democracy and human rights” with regard to the crisis in Gaza. The insightful interview by journalist Norman Goh on the sidelines of the Asean-Japan Commemorative Summit on Sunday is featured in Nikkei Asia, the flagship publication of Nikkei Inc, which is the world’s largest financial newspaper. “I’m sick of this hypocrisy. It’s not politics. These are humanitarian issues. I would say such hypocrisy is (happening in) many of the so-called countries that promote democracy and human rights.” Anwar’s statement on the conflict was shared by Goh on X. The latest conflict in Gaza, which began on Oct 7, has resulted in the loss of about 19,000 Palestinian lives and left more than 50,000 injured, as reported by Gaza’s health authorities. A permanent ceasefire remains elusive, with the United States vetoing a United Nations Security Council resolution on Gaza, which called for an “immediate humanitarian ceasefire.” Anwar also acknowledged the humanitarian issues faced by Asean member states, especially Myanmar’s human rights violations following the military coup in February 2021. He highlighted the efforts undertaken by Asean and Myanmar’s immediate neighbours within a five-point consensus peace roadmap to find a solution to the Myanmar issue. Anwar also commented on the tensions in the South China Sea, where several Asean member states, including Malaysia, are involved in overlapping territorial claims with China, emphasising the need to avoid hostilities and maintain good relations with China. “No country should unilaterally decide on sovereignty and territorial integrity. We must negotiate as Asean or bilaterally.” On the China-US conflict, Anwar stressed that taking sides would not benefit Malaysia, and the region must remain a zone of peace. Malaysia’s basic position is to be friends and engage with all parties, and not be perceived as being pawns of any power. – Bernama that the situation could be resolved. “For the time being, there have been no discussions on reinstating the movement control order. We want to deal with the current situation without having to repeat restrictions such as those at the beginning of the pandemic in March 2020,” he told a press conference yesterday. He added that a total of 20,696 Covid-19 cases were reported, an increase of 62.2% compared with the total number of cases recorded in the 49th epidemiological week. “The latest figures of infection were recorded in the 50th epidemiological week from Dec 10 to 16. Cases that require treatment in intensive care units were 151, of which 96 required assistive devices for breathing. There were 28 fatalities recorded, with a death rate of 0.1%. The highest mortality was among those aged 60 and above (85%) and those who have comorbidities (93%).” Dzulkekly said the majority of cases (97%) were in categories one and two. “There is nothing to be alarmed about, but don’t take things lightly. We are getting ready for any eventuality.” He also gave an assurance that government health facilities were capable of handling the rise in cases and were ready to mobilise other facilities if required. “The ministry will continue to closely monitor hospital capacity and we are ready to face any surge in patient admissions. “We are also ready to mobilise and reinforce facilities and non-Health Ministry agencies such as teaching hospitals, military hospitals, private facilities and NGOs.” Dzulkefly added that Malaysians are advised to wear face masks while individuals with symptoms should avoid the 3Cs, namely crowds, congested areas and close contact with others. He said detailed information on the current infection situation and the spread of the disease in the country would be uploaded at https://data.moh.gov.my, and the data would be updated weekly. King witnesses preparations for ‘Ops Ihsan’ delivery to Palestine SEPANG: The Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah witnessed preparations at the KL International Airport cargo terminal yesterday for Malaysia’s third delivery of Ops Ihsan humanitarian aid for Palestinians. The King, accompanied by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, spent about an hour inspecting the items at the terminal warehouse as well as those loaded onto a specially chartered cargo aircraft, Bernama reported. According to a Foreign Ministry statement, the aid this time involves about 60 tonnes of items comprising 36 tonnes of medical supplies, seven tonnes of ready-to-eat food, four tonnes of baby products and 13 tonnes of materials for winter use, such as mattresses and blankets. With this delivery, Malaysia has sent 100 tonnes of items as humanitarian aid, after the first and second deliveries, each involving goods weighing 20 tonnes. The aircraft is expected to leave KLIA early tomorrow and land at the Al-Arish Military Airport in Egypt on the same day, said the statement. “The aid will be handed to the Egyptian Red Crescent Society to be channelled to Palestinians in Gaza.” The Foreign Ministry said the interagency collaboration with NGOs is to ensure that the aid is delivered to Palestinians in Gaza in a more structured, integrated and effective way under the ministry’s supervision. Ahmad Zahid said Ops Ihsan has proven to be effective through the structured and efficient management as well as use of resources and expertise of various organisations. “This maiden collaboration has been successful. It has managed to prevent overlapping and misappropriation to ensure that the aid meets their requirements.”

TUESDAY | DEC 19, 2023 3 Govt moves to spread awareness on initiatives KUCHING: The inclusion of the Community Communications Department under the Communications Ministry will further strengthen the ministry’s efforts to promote government initiatives and combat misinformation, said its deputy minister Teo Nie Ching, adding that good initiatives such as the Madani Medical Scheme should be promoted to benefit the rakyat. “(Under the scheme) we have provided over a million free treatments for minor ailments and this is a good success story. But I believe there are still people who do not know about the initiative. “We would also like to help other ministries to promote their programmes so that more people would be aware and benefit from them,” she said after attending a meet-up session with the ministry’s heads of departments in Sarawak yesterday. On Dec 13, Communications Minister Fahmi Fadzil said the Community Communications Department, which was previously under the Prime Minister’s Department, has now been placed under the Communications Ministry. Teo said efficient communication is important not just to spread information on new initiatives, but is also crucial in responding to certain issues, Bernama reported. She added that the government needs to provide clarification on misleading statements or information effectively and should not allow certain issues to go on unattended for days. Plan for more job skills programmes KUALA LUMPUR: The Malaysian Indian Transformation Unit (Mitra) is looking to boost programmes that strengthen knowledge and job skills, said its Special Committee chairman Datuk R. Ramanan, who is also Entrepreneur and Cooperatives Development deputy minister. He said he will advocate for such programmes, like the just-concluded “Serambi Sijil Pelajaran Malaysia (SPM) 2023” seminar, to be held more often nationwide. “Of course, we are looking forward to doing programmes like this nationwide. At the moment, Mitra is (also) working on a lot of plans and initiatives to come in the years ahead of us. “There will be some changes, let’s wait and see what happens. In the meantime, I will advocate for more programmes like Serambi SPM 2023 to be held nationwide,” he said on Sunday after officiating at the closing ceremony of the seminar, that was organised by Mahsa University and sponsored by Mitra. Some 800 students from 30 schools in Selangor participated in the seminar to hone their knowledge in Bahasa Melayu, History and Mathematics. – Bernama Talks in schools to be monitored JOHOR BAHRU: The Education Department here has been directed to monitor talks held in schools following the posting of a video on social media on an event involving a social media influencer and students that allegedly caused unease in the community. State Education, Information and Communications Committee chairman Norlizah Noh said an engagement session involving coordinating officers in the student management and development sector will be held to discuss the matter, Bernama reported. “I have asked the department to monitor all talks given in schools,” she said yesterday in response to a call for the influencer to be “banned”. In the video, a female student is seen approaching a male student while doing a catwalk, before giving him a “flying kiss”. Local Government Development Ministry on a roll KUALA LUMPUR: The Local Government Development Minstry has been very busy this year, as its minister Nga Kor Ming had set ambitious targets at the start of the year to revive sick housing projects. The ministry has salvaged 351 abandoned projects worth RM32.87 billion throughout the country and saved nearly 44,000 house buyers from the heartache of losing not just their dream home, but hard-earned savings as well. Speaking on the ministry’s most notable achievements this year, Nga said it has been a year of significant firsts for the ministry. “We have implemented over 5,200 public infrastructure and community projects, the largest yet throughout the ministry’s history,” he said, adding that he was also proud to have cultivated a culture of service excellence within the ministry. “This was done by awarding staff with Anugerah Kecemerlangan Menteri, a recognition that did not exist at other ministries or related agencies prior to this.” The ministry has also won 12 local and international awards over the past year, an unprecedented record. Among notable achievements was the Fire and Rescue Services Department groundbreaking Audio Frequency Intercept System, which won the highest amount of recognition at the 2023 Public Sector Premier Innovation Awards. The awards came with a cash prize of RM1 million for the ministry, but Nga decided to extend his appreciation to the winners by rewarding them with a month of his salary. On his plans for the ministry in 2024, Nga said the coming year was centred around making the ministry a centre of public service excellence. “Our main focus will be on ensuring every policy and its implementation is for the people’s well-being,” he said. For more information on the ministry’s achievements in the past year, visit https://garasi.bernama.com/stories/menguba h-landskap-hidup-rakyat. – Bernama Top notch pay-TV option launched KUALA LUMPUR: Berjaya Group founder and adviser Tan Sri Vincent Tan’s Ansat Broadcast Sdn Bhd and Indonesian multinational conglomerate Media Nusantara Citra (MNC) Group have launched OK Vision, a subscriber-based television and content distributor in Malaysia. OK Vision offers 35 channels including Malaysian, international and MNC-managed content through Direct-to-Home (DTH) services via OK1000 devices connected to KUBand Satellite antennas by MNC. Communications Minister Fahmi Fadzil said digital media platforms are integral to the economy, contributing to revenue generation, employment, innovation and global competitiveness. “As the digital ecosystem continues to evolve, the economic impact of digital media is likely to grow, further shaping Malaysia’s position in the global digital economy. “Popular digital media platforms may include streaming services, news websites, social media platforms and other online content providers. The popularity of digital streaming services has been on the rise,” he said, during the launch yesterday. He also said both local and international platforms may have a significant presence in the local market and these services contribute to the digital transformation of the media and entertainment industry by offering ondemand content. “The growth of the digital media industry may lead to increased local and international investments in technology and infrastructure. This initiative will contribute to the enrichment of Malaysia’s artistic landscape and serve to fortify and elevate the prominence of local artwork within the country.” Tan (left) with Fahmi and Hary during the launch yesterday. – ADIB RAWI YAHYA/THESUN oLocal firm teams up with Indonesian group to provide home entertainment streaming service via OK Vision █ BY QALIF ZUHAIR [email protected] Tan, who is the major shareholder of U Telemedia, which co-owns Ansat Broadcast, expressed confidence in the potential that OK Vision offers in the streaming market through the collaboration. “Ok Vision is well-positioned to encompass the local digital and entertainment market. The partnership with MNC Group also signifies a productive relationship and cooperative ties between our two countries. “We are confident in the potential and prospects that will be presented through the collaborative efforts of Ansat Broadcast and MNC Group, delivering a variety of quality content options.” He added that with MNC’s proven technology, Ansat Broadcast can now expand to become the preferred platform for home digital entertainment. “Through the combined spectrum of regional and global content offerings from Ok Vision, we believe it can usher in a new era for subscribers seeking diversity, quality and value in home entertainment.” Tan said he is confident OK Vision can compete with other streaming and IPTV providers in the country. “Many years ago, I attempted to venture into the business with MiTV, aiming to challenge Astro as a second provider. Unfortunately our efforts failed, resulting in a loss of RM250 million. This setback led me to believe I would never return to this business. “At the time, we could not use satellites. If we could access the technology, we would have had the means to compete. However, now we have the opportunity to do so.” Tan also said with the official launch of Ok Vision, Ansat Broadcast will redefine digital entertainment in Malaysia. MN Group executive chairman Hary Tanoesoedibjo said the firm is committed to elevating the realm of content distribution and recognises Ansat Broadcast’s expertise and innovation as invaluable assets that align seamlessly with its vision. “This collaboration highlights our unwavering dedication to pushing boundaries and delivering cutting-edge content solutions for audiences at home,” he said.

TUESDAY | DEC 19, 2023 4 /thesundaily FOLLOW ON FACEBOOK Malaysian Paper PETALING JAYA: An environmental study has revealed Malaysia contributes significantly to microplastic pollution in the marine ecosystem. Universiti Putra Malaysia Assoc Prof Dr Sarva Mangala Praveena Appalanaidu said the pollution was caused by the dumping of personal care and cosmetics products, adding that the situation is worrisome and called for prompt action to address the issue. “Microplastics are tiny fragments of plastic waste found in the environment. They are a consequence of the disposal and degradation of consumer goods and industrial waste.” Sarva said 0.199 trillion microplastics were measured during the survey, which was calculated based on specific formulas for microplastic particles released from selected personal care products. She also said previous research by her team indicates that facial scrub, toothpaste, liquid soap, shower gel and cosmetics are potential culprits. “These products often contain glitter and microbeads, which are manufactured solid plastic particles of less than 1mm in their largest dimension. They enter water bodies through wastewater discharge and runoff. “Microbeads are a kind of microplastic with a specific function for scrubbing or exfoliating skin. In cosmetics, ‘microplastic’ refers to all types of tiny plastic particles (smaller than 5mm) that are intentionally added to cosmetics and personal care products. They are often used as emulsifying agents or just as cheap fillers.” Sarva said discharge of microplastics into the marine ecosystem pose a threat to aquatic life and ecosystems. “The presence of microplastics in the environment raises concerns about their accumulation in the food chain, with potential health implications for marine life and humans.” She also said while there is no specific regulations in Malaysia on microplastics in personal care products, global examples provide insight into effective strategies, adding that the US, UK, EU, Australia, New Zealand and Taiwan have banned or restricted its usage. Sarva said the adoption of sustainable practices in the beauty and personal care industry is crucial, while the government plays a pivotal role in fostering a sustainable future and this involves implementing specific regulations to address microplastics. “Consumers should (opt for products) with natural alternatives like nutshells, salt, sugar, oatmeal or bamboo particles. Several brands offer products with eco-friendly alternatives.” She suggested using apps like “Beat the Microbead”, which allows consumers to scan product barcodes to verify the presence of microplastic. “This will empower consumers to choose products that align with their environmental values.” She also said a robust regulatory framework should be established, which encompasses guidelines and potential bans or restrictions on microplastics. “Financial incentives must be introduced to motivate businesses to adopt sustainable practices and adhere to regulations.” She said industry collaboration is crucial and requires the establishment of guidelines for minimising the use of microplastics. Research and development efforts should also be supported to explore sustainable alternatives, while the introduction of ecolabelling programmes could showcase and promote microplastic-free products. “By implementing sustainable practices, adopting regulations and fostering collaboration between government, industry and consumers, Malaysia could contribute to a cleaner and healthier marine environment.” Local jazz legend dies PETALING JAYA: Malaysian jazz legend and iconic drummer Lewis Pragasam passed away yesterday at the age of 66. An announcement on his Facebook fan page said Pragasam died of a heart attack at 3am in Beacon Hospital. He is said to have collapsed during the Music of Christmas concert at Good Shepherd Assembly of God church on Sunday. Pragasam was internationally acclaimed as one of Asia’s leading drummers and percussionists, and also an innovator of new music trends. As the founder and leader of the Asiabeat Project, which began in 1979, Pragasam created a unique Malaysian-Asian identity with cross-cultural musical collaborations. Drawing inspiration from jazz fusion, he brought together different musicians and pioneered the merging of Asian and contemporary instruments in his works with Asiabeat. In 1990, Pragasam received a Fulbright Scholarship from the American government. During his tenure in the US, he traveled extensively while giving workshops and masterclass sessions at many academic institutions. In 1995, he was invited for a Royal Command Performance for then HRH Prince Charles as part of the Princes Trust Concert in Scotland. In an interview with theSun in 2020, Lewis said he was often asked what motivated him to continue pursuing music. “Ever since I was young, I have loved what I do. I love people. I believe I’ve been brought into the world to share my talents, my love for people.” – by Andrew Sagayam Alarm over Malaysia’s microplastic footprint oGovernment, industry and consumer collaboration on sustainable practices vital for healthier marine environment █ BY SIVANISVARRY MORHAN [email protected]

TUESDAY | DEC 19, 2023 5 Soil movement detected at Puchong landslide site oWork to place metal piles to stabilise location ongoing after several houses affected PUCHONG: Police confirmed that soil movement was still detected at the scene of the Taman Wawasan landslide here as of Sunday. Serdang OCPD ACP A.A. Anbalagan said: “The cement (foundation) for gates of several houses (were affected). “Work to place 46 metal piles (to reinforce the earth in the area and the unaffected soil embankment) resumed yesterday. The situation is being monitored.” Anbalagan said the piles were a preventive measure to strengthen the area and prevent further soil movement. “Work to place 375 piles in the 150m area started at 4am on Sunday. In addition to placing the piles, (tarpaulin sheets) are also being placed to prevent water seeping into the ground,” he said at a control post set up at the location. Anbalagan also said the placement of the piles is expected to be completed in two weeks, adding that one family was initially staying at a temporary relief shelter but have since moved out and the shelter was closed at 9pm on Sunday. “Other affected residents are staying with relatives nearby.” He said the landslide caused two underground pipes to leak and an electricity pole to collapse. Water and electricity supply to the area has been cut as a preventive measure. Anbalagan advised affected residents who wish to return home to collect important documents or other items to inform police personnel at the control post. The landslide at Jalan Wawasan 3/9 and 3/14 on Saturday caused four vehicles to be buried and forced residents of seven houses to be evacuated. No casualties were reported. Inspections on 26 terrace houses along Jalan Wawasan by the Petaling District and Land Office are ongoing. District officer Rahilah Rahmat said the inspections include analysing the structure of the 26 units. “We will check each house to ascertain if there are any cracks. So far, only nine houses were affected. We will wait for a Mineral and Geoscience Department report before taking further action.” Rahilah said her team is working to expedite repair works that are being hampered by unpredictable weather conditions. Police have cordoned off the site to prevent residents from entering the area. Dancers performing at the closing ceremony of the Indonesia Malaysia Thailand Growth Triangle International Peranakan Festival. – BERNAMAPIC Malacca to hold Kebaya Day next year MALACCA: The state government, through Institut Warisan Melaka, will hold Kebaya Day in conjunction with Visit Malacca Year 2024. Chief Minister Datuk Seri Ab Rauf Yusoh said the three-day event is aimed at promoting kebaya, which is synonymous with Peranakan communities, namely Baba and Nyonya, Chetti and Portuguese in the state. “These communities have their own traditional kebaya, with distinctive designs that are still worn today. The public is urged to wear kebaya to enliven the event, which will be filled with various activities,” he said after officiating at the closing ceremony of the Indonesia Malaysia Thailand Growth Triangle International Peranakan Festival on Sunday. Ab Rauf said Kebaya Day will be held under the cultural sub-sector as part of efforts to uphold cultural diversity. He added that the event would help participating kebaya makers increase sales and encourage the public to appreciate kebaya. “Various activities will be carried out throughout the event, including performances showcasing Peranakan community culture.” On the international Peranakan festival, Ab Rauf said it was organised to expose the younger generation to the cultural heritage of Peranakan communities in the three countries. Peranakan dance workshops, cooking demonstrations and cultural performances were among activities held during the three-day event. – Bernama Highway upgrade ready in three years JOHOR BAHRU: Phases One and Two of a project to widen the North-South Expressway (PLUS) from Johor Bahru to Simpang Renggam are expected to be completed in three years, said Menteri Besar Datuk Onn Hafiz Ghazi. He said the state government proposed to PLUS for the works to include Tangkak in the next phase, adding that other issues were also discussed during a meeting with PLUS Malaysia Berhad managing director Datuk Nik Airina Nik Jaffar, especially regarding traffic flow and maintenance and development of facility infrastructure. “Among the proposals were activating a ‘smart lane’ or emergency lane during peak hours and weekends and upgrading facilities at rest and service areas. “We also discussed the monitoring of the schedule to carry out upgrading or repair works and controlling the movement time of lorries and containers,” he said in a post on Facebook yesterday. – Bernama UKM wins BM trophy in debate tourney SHAH ALAM: The Universiti Kebangsaan Malaysia (UKM) debating team emerged as the Bahasa Melayu (BM) category winner in the 24th Royal Intervarsity Debating championship yesterday. They defeated the Universiti Islam Antarabangsa Malaysia team, whose topic was “This Chamber Will Prioritise Manpower Development Over Artificial Intelligence Development”. Universiti Teknologi Mara (UiTM) was the champion in the English category, while the winner of the Arabic category was Universiti Malaya. Tengku Permaisuri of Selangor Tengku Permaisuri Norashikin officiated at the closing ceremony and presented the prizes at Dewan Agung Tuanku Canselor UiTM. Also present were Higher Education Minister Datuk Seri Dr Zambry Abd Kadir and Selangor Menteri Besar Datuk Seri Amirudin Shari. About 85 teams representing 19 public and four private varsities participated. – Bernama █ BY JOSHUA PURUSHOTMAN [email protected] 69 tonnes of trash cleared from Perak beaches MANJUNG: The municipal council here has collected 69 tonnes of rubbish washed up by the tide at Teluk Batik beach in Manjung, Teluk Nipah beach and Pasir Bogak in Pangkor Island since Dec 9. Perak Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee said the trash and debris were washed up by strong waves due to the monsoon season and the current high tide phenomenon. “The council, with the cooperation of the Civil Defence Force, resident associations, Pangkor Island beach boys and contractors, collected 29 tonnes at Teluk Batik on Dec 9 and 10. “Clean-up works at Teluk Nipah and Pasir Bogak are ongoing,” he said yesterday during a visit to Teluk Batik after receiving complaints about the issue. Loh said the issue was critical, involving the image and safety of many parties, adding that it could also affect visitor arrivals to Teluk Batik and Pangkor Island in conjunction with Visit Perak Year 2024. “The matter requires large-scale efforts and a substantial workforce, involving costs of up to RM100,000 for contractors and other expenses.” He also said the council will continue with the “Take Your Rubbish Home” campaign launched in November 2020 to educate visitors and reduce litter on beaches. “We must educate the public and create a positive impact in efforts to preserve tourism products in the Manjung district.” Council secretary Mohd Helmi Arifin said proposals had been drafted and applications sent to the Perak government for allocations to enhance preparedness in facing the high tide phenomenon, including annual funds and a one-off assistance for cleaning operations. – Bernama

TUESDAY | DEC 19, 2023 6 @thesundaily FOLLOW ON TWITTER Malaysian Paper IPOH: A senior police officer was charged in the Magistrate’s Court here yesterday with the murder of a 17-year-old secondary school student last Friday. No plea was recorded from the accused Mohd Nazri Abdul Razak, 44, when the charge was read out before Magistrate S. Punitha, as the case is under the jurisdiction of the High Court. Mohd Nazri, whose rank is deputy superintendent (DSP) is accused of causing the death of Muhammad Zaharif Affendi Muhd Zamrie near Sekolah Menengah Kebangsaan Jati between 12.05pm and 12.40pm on Dec 15. He was charged under Section 302 of the Penal Code, which carries the death sentence or imprisonment of between 30 and 40 years, and not less than 12 strokes of the cane. A team of deputy public prosecutors comprising Khairul Azreem Mamat, Wan Azimah Yaacob, Afzainizam Abdul Aziz, Saiful Akmal Mod Said, Nasrul Hadi Abdul Ghani, J. Geetha, Low Qin Hui and led by Azlina Rasdi appeared for the prosecution. Lawyer Jacky Low Yap Loong represented the accused, who was seen entering the courtroom wearing a white shirt and black pants with his head covered by a cloth. No bail was offered and the court set Feb 7 next year for the case mention pending several relevant documents, including the chemist’s report. It was a sombre atmosphere in the court compound earlier yesterday when Muhammad Zaharif’s family arrived for the proceedings. His brother Zarul Fitri, 29, was later seen sobbing in the courtroom. The victim’s uncle, Abdul Razak Judin, 48, said he attended the proceedings with two other relatives. He added that the boy’s parents and extended family have now accepted the tragedy as fate, Bernama reported. Many police personnel were also observed guarding the court’s perimeter. On Dec 15, Mohd Nazri while driving a car, is believed to have crashed into Muhammad Zaharif, who was riding a motorcycle. Muhammad Zaharif was dragged for some distance at Jalan Taman Jati near SMK Jati in Meru, Ipoh. He died at the scene due to severe injuries to his chest and abdomen. Following the incident, the policeman was detained and remanded for three days to facilitate investigations. On Sunday, the Attorney-General’s Chambers released a statement saying Mohd Nazri would be charged at the Ipoh Magistrate’s Court, adding that there was sufficient evidence to charge him with murder under Section 302 of the Penal Code. 800kg drugs worth RM44m seized NILAI: The Royal Malaysian Customs Department seized 807.9kg fentanyl drugs worth RM44.4 million at the KL International Airport (KLIA) air cargo complex in Sepang on Dec 9. Customs (Enforcement and Compliance) deputy director-general Datuk Sazali Mohamad said that in a raid at about 12.30am, the department seized 36 boxes containing 72 aluminium bottles containing a liquid substance believed to be fentanyl. “This is our first seizure involving this type of drug, which is 100 times more dangerous than morphine and 20 to 40 times stronger than heroin. If it is mixed with xylazine, it will cause people to be like zombies.” He said preliminary investigation found that the drugs arrived at the cargo complex from Mumbai International Airport on transit to Dubai. Sazali said the syndicate’s modus operandi was to declare items containing drugs as fragrance compounds. He said from January to November this year, Customs had foiled 398 drug cases involving RM294.37 million. – Bernama Senior cop charged with murder of student oDSP faces death sentence or jail term of between 30 and 40 years, and not less than 12 strokes of the cane Prosecution shows transparency of probe: IGP KUALA LUMPUR: The Attorney-General’s Chambers’ (AGC) decision to charge a senior police officer believed to be involved in a fatal accident of a Form Five student in Meru, Ipoh, last Friday with murder shows that the police are transparent in their investigations. Inspector-General of Police Tan Sri Razarudin Husin said the action to charge the officer bearing the rank of deputy superintendent (DSP) under Section 302 of the Penal Code yesterday was decided by the AGC based on evidence and testimonies obtained from a comprehensive investigation by the investigating officer. “The decision shows the transparency of the police in investigating any criminal case, including those involving senior police officers. The probe was carried out by the state police chief and the Ipoh district police chief, along with a good and credible investigative team. “I remain uncompromising should any personnel or officer commit a crime, and will ensure a fair and transparent investigation is conducted to preserve the good reputation of this force,” he said on Sunday night, adding that the senior police officer will be suspended immediately after being charged. Razarudin said all police officers and personnel should learn from this incident. Every personnel in the security force need to always maintain the good reputation of the police force and not hide behind the police badge when committing a crime. – Bernama Ex-1MDB lawyer to testify in Najib case KUALA LUMPUR: The prosecution in Datuk Seri Najib Abdul Razak’s trial yesterday told the High Court that 1Malaysia Development Berhad (1MDB) former general counsel Jasmine Loo Ai Swan would be called to testify in the case. DPP Ahmad Akram Gharib said the prosecution is planning to call Loo after taking into consideration the testimony of the assistant director of the anti-money laundering criminal investigation division ACP Foo Wei Min, which implicated Loo. To this, trial Judge Datuk Collin Lawrence Sequerah said this development was something new. Foo also testified that Loo was the personal assistant to Jho Low. – Bernama Over 6,000 at 30 flood relief centres KUALA LUMPUR: A total of 6,271 people were at 30 flood relief centres in four states yesterday morning, with the number of evacuees rising in Kelantan and Selangor, dropping in Terengganu and remaining unchanged in Perak. In Kelantan, 5,327 evacuees from 1,688 families were being housed at 17 relief centres in Pasir Mas and Tanah Merah as at 9am, up from 4,840 from 1,528 families on Sunday night. In Terengganu, the number of evacuees at 10 relief centres dropped to 812 people from 180 families as at 8am yesterday, compared with 824 from 184 families on Sunday night. The Terengganu disaster management committee secretariat said three affected districts were in Dungun with 583 evacuees from 147 families, Marang with 179, and Setiu with 50. In Selangor, the Social Welfare Department disaster info portal reported that 43 evacuees from 12 families were housed at two relief centres yesterday morning compared with 39 from 11 families on Sunday night. Sekolah Rendah Agama Padang Jawa in Klang are sheltering 23 evacuees while 20 more are at SK Parit Mahang in Kuala Selangor. The Public Infobanjir portal reported that the levels of Sungai Klang in Selat Muara and Sungai Buloh in Parit Mahang, Kuala Selangor were at the alert points of 2.4m and 3.5m respectively. In Perak, 89 evacuees from 26 families are being housed at a relief centre at the Padang Tembak Multipurpose Hall in Teluk Intan. – Bernama KUALA KRAI: About 500 residents from four villages – Pasir Jering, Dusun Ban, Dusun Bunut and Batu Pagar – near Chenulang, have been cut off after a 25m bridge collapsed due to the recent floods. Villager Mohd Mahdam Abdullah, 30, from Kampung Pasir Jering said he learnt of the incident at 1pm on Sunday when the floodwaters started to recede. “Because of the collapse, it is difficult for us to carry out our daily activities such as buying kitchen essentials and others,” he said, and urged the authorities to build a new bridge immediately. Malaysian Army 8th Brigade commander Brig-Jen Datuk Azudin Hassan said they would wait for instructions from the disaster operations control centre before taking further action. “For now, we have prepared two armed forces boats and one Civil Defence Force boat for residents in case of emergencies. “About 55 personnel from the police, Fire and Rescue Department, military and civil defence have been deployed to ensure the safety of residents,” he said. – Bernama Villagers cut off due to bridge collapse Mohd Zulkhairi Abd Rahman (second from right) and Mohd Sabri Kamaruddin (right) selling freshwater fish at Kampung Che Lijah in Dungun, Terengganu. The fish is abundantly found in flooded areas during the monsoon season and is a source of income for some of the residents. – BERNAMAPIC

TUESDAY | DEC 19, 2023 7 Hong Kong tycoon goes on trial HONG KONG: Pro-democracy tycoon Jimmy Lai went on trial in Hong Kong yesterday on national security charges that could see him jailed for life, with the United States and Britain demanding his release. Lai, 76, is accused of “collusion” with foreign forces under a sweeping national security law that Beijing imposed on the finance hub in 2020. He is the founder of the now-shuttered Chinese-language tabloid Apple Daily, which often criticised Beijing and supported the huge protest movement that roiled Hong Kong in 2019. The trial, which will continue into the New Year, is being closely watched as a barometer for the special administrative region’s oLai accused of collusion with foreign forces, US and UK urge his release political freedoms and judicial independence. A rags-to-riches millionaire who made his fortune selling clothes before expanding into media, Lai will be tried without a jury and has been denied his first choice of lawyer. Lai, who has not been seen publicly since 2021, appeared in court yesterday in a suit, looking thinner than in previous appearances. He smiled and waved at the gallery where his family sat. He is also a British citizen and representatives from foreign consulates of the US, Britain, Australia and Canada were present to observe the trial. His case has drawn widespread condemnation from the international community but Beijing has dismissed the criticism as smears and interference. Chinese Foreign Ministry spokesman Wang Wenbin accused the US and Britain of double standards and described Lai as an “errand boy of anti-China forces”. “The United States and United Kingdom’s remarks on the case are in serious violation of the spirit of the rule of law, and they constitute blatant political manoeuvring.” In a statement made before proceedings began, British Foreign Secretary David Cameron said he was “particularly concerned at the politically motivated prosecution” of Lai. “As a prominent and outspoken publisher, Lai has been targeted in a clear attempt to stop the peaceful exercise of his rights to freedom of expression and association. “I call on the Hong Kong authorities to end their prosecution and release Lai.” US State Department spokesman Matthew Miller also called for Lai’s release. “Actions that stifle press freedom have undermined Hong Kong’s democratic institutions.” Imprisoned for more than 1,100 days, Lai has already been convicted in five other cases, including for organising and participating in marches during the 2019 democracy protests. Dozens of activists have been charged under the national security law but Lai is the first to contest a foreign “collusion” charge. The trial will include a raft of other charges against him, including “conspiracy to publish seditious material”. Heavy security was deployed outside the court yesterday, along with an armoured vehicle and police wearing tactical gear. – AFP Rare snowfall in south China, deep freeze grips north BEIJING: The cold weather sweeping China brought rare snowfall yesterday as far south as the province of Guangdong, while temperatures in the chilly north plunged to near historic lows for the month. In a week of unexpectedly frigid weather, temperatures have fallen to lows below zero in northern areas, disrupting road, rail and air transport and even causing a brake failure in a commuter train in Beijing. Forecasters early last month had predicted a warmer winter this year People visiting the Nanyue Hengshan Scenic Area after a snowfall in the city of Hengyang in central Hunan province. – AFPPIC North Korea tests most advanced missile with America in range SEOUL: North Korea yesterday test-fired its most advanced intercontinental ballistic missile (ICBM) that has the potential to reach the US, extending a record-breaking number of weapons tests this year and triggering further international condemnation. South Korea said the North fired an ICBM that used solid fuel, which makes missiles easier to transport and faster to fire than liquid-fuelled versions. Yesterday’s launch was the third time the North had tested a solid-fuel ICBM, after launches in April and July, which analysts said signalled consistent efforts to improve the technology. North Korea had said the previous two were Hwasong-18 missiles but did not immediately comment on yesterday’s launch. The US, South Korea and Japan all quickly condemned the missile test, stating it was in breach of United Nations Security Council resolutions and would make the Korean peninsula less secure. South Korean President Yoon Suk Yeol ordered an “immediate and overwhelming” countermeasure, and called for a joint response with the US and Japan. Japan’s Defence Ministry said the ICBM had a potential range of more than 15,000km, which would cover all of the US. “(The launches are) not only a clear violation of UN Security Council resolutions but also a threat to peace and stability of the region and we strongly condemn,” Japanese Prime Minister Fumio Kishida said. The UN Security Council has adopted many resolutions calling on North Korea to halt its nuclear and ballistic missile programmes since it first conducted a nuclear test in 2006. South Korea’s military initially said it had detected the launch of a long-range ballistic missile from the Pyongyang area yesterday morning that flew 1,000km before splashing down in the East Sea, also known as the Sea of Japan. – AFP B R I E F SIMRAN USES AI VOICE CLONE TO CAMPAIGN ISLAMABAD: Artificial intelligence allowed Pakistan’s ex-prime minister Imran Khan to campaign from behind bars yesterday, with a voice clone of the opposition leader giving an impassioned speech on his behalf. Imran has been locked up since August and is being tried for leaking classified documents. But his Pakistan Tehreek-e-Insaf (PTI) party used artificial intelligence to make a four-minute message from the 71-year-old, headlining a “virtual rally” hosted on social media early yesterday. PTI said Khan sent a shorthand script through lawyers which was fleshed out into his rhetorical lingo. The text was then dubbed into audio using a tool from AI firm ElevenLabs, which boasts the ability to create a “voice clone” from existing speech samples. – AFP TWO BALLOONS CROSS TAIWAN STRAIT TAIPEI: Two Chinese balloons flew across the sensitive median line separating Taiwan from China, the self-ruled island’s Defence Ministry said yesterday, the second time it has reported a sighting this month. While China has in recent years ramped up military and political pressure on Taiwan, which it claims as its territory, the appearance of balloons is relatively rare. The two sightings were made at 9.03am and 2.43pm on Sunday, around 200km northwest of the city of Keelung after crossing the strait, Taiwan’s Defence Ministry said. “The balloons headed east and disappeared at 9.36am and 4.35pm respectively,” it added in a statement. A ministry spokesman said an initial analysis showed they were weather balloons. – AFP due to the El Nino phenomenon, while warning that temperatures could fluctuate after one of the warmest Octobers in decades. In Guangdong, where snow is generally limited to the northernmost areas, snowfall blanketed the top of a mountain yesterday in a city just 80km north of the provincial capital Guangzhou by the coast. A low of 8°C was forecast for Guangzhou, compared to the province’s typical early winter temperatures that hover in the double digits, while January averages 14°C. Guangzhou officials urged precautions, especially for the old and young who may be vulnerable to “cold wave illnesses”, as winter advances. In neighbouring Guangxi, where President Xi Jinping called last week for an “all-out” emergency response, sleet has been forecast for some cities. Snow flurries were seen in commercial hub Shanghai yesterday. In Beijing yesterday morning, temperatures dropped to –15.5°C, near the 1952 historic low of –15.2°C for Dec 19 and –17.7°C for Dec 20 that year. The lowest recorded December temperature was –18.3°C. Low temperatures will prevail until Thursday, the national forecaster warned, with northern areas, Inner Mongolia and some areas around the Yangtze river to be 7°C lower than is typical. This week, the city of Hohhot in Inner Mongolia is expected to experience a low of –22°C while the mercury will sink to –5°C in Zhengzhou in the central province of Henan. Rain and snow could lash the middle and lower reaches of the Yangtze and its south, including parts of Anhui, Jiangsu and Zhejiang provinces as well as Shanghai, the forecaster added. Efforts to cash in on the cold weather led to a downside for more than 50 tourists trapped for over two hours on Saturday in cable cars ascending a mountain in Zhejiang after windy weather triggered a halt for safety reasons. All were unharmed despite freezing conditions in the cable cars, media said. – Reuters

TUESDAY | DEC 19, 2023 8 /thesuntelegram FOLLOW ON TELEGRAM Malaysian Paper Thai troops kill 15 suspected drug smugglers BANGKOK: Thai soldiers killed 15 suspected drug smugglers in a shootout in a remote northern district near the Myanmar border, an army official said yesterday. The clash on Saturday evening took place in Chiang Rai province’s Mae Fah Luang district, close to the “Golden Triangle” where Thailand, Myanmar and Laos meet, which has long been a hub for smuggling. After the clash, officers found 17 bags containing more than two million amphetamine tablets, the army official told AFP. “We cannot identify yet whether the 15 were all Thais or not,” he said on condition of anonymity. Myanmar is a major producer of illegal amphetamines, many of which are shipped through Thailand and Laos. Myanmar has been in chaos and its economy crippled since a military coup in February 2021, but synthetic drug production in troubled Shan state was already booming before the putsch. Deadly shootouts between military patrols and drug smugglers are not uncommon in the hilly jungle areas along Thailand’s northern border with Myanmar. A smuggler and a police officer were killed in a clash in September, while a year ago 15 suspects were shot dead by the military in Chiang Rai as they attempted to cross the border on foot. – AFP B R I E F SDOZENS HURT IN GUINEA FUEL DEPOT BLAST CONAKRY: An explosion rocked a fuel depot in the Guinea capital Conakry yesterday, injuring dozens of people, according to a doctor and local residents. “Dozens of injured people are arriving at two of Conakry’s main hospitals, Donka and Ignace Deen,” said Donka Hospital surgeon Mamadouba Sylla. The explosion, accompanied by a fire, occurred shortly after midnight in the administrative and business district of Kaloum, near the port, according to local media and residents. The explosion sent thick black clouds of smoke into the sky yesterday morning as residents fled the area where the blast occurred, images on social networks showed. – AFP 12 KILLED IN ATTACK ON PARTY IN MEXICO MEXICO CITY: At least 12 people were killed and another dozen were wounded in an attack on Sunday on a pre-Christmas party in central Mexico, authorities in the state of Guanajuato said. The violence occurred in the town of Salvatierra, reportedly at a hacienda, or ranch, that can be rented out for festivities. “So far 12 people are reported dead,” the state’s prosecutor’s office said on X. Twelve others who were wounded have been taken to hospital, according to authorities. A person who was at the party said six men with long guns entered the venue and began circulating among the 100 or so young people gathered at the event. “We realised they were not invited, and when they were asked who they were, they started shooting,” he said. – AFP Thousands flee as storm hits Philippines MANILA: A man went missing and thousands of people in the Philippines were sheltering in evacuation centres yesterday as Tropical Storm Jelawat hit the large southern island of Mindanao, causing scattered flooding and power cuts. The storm weakened as it raked across Mindanao after making landfall in the morning, but the state weather service said the threat of floods and landslides remained. Police in Manay municipality, where Jelawat made landfall, reported one man missing at the swollen Casaoman River that bisects the coastal town of about 40,000 people. “A local man ignored warnings and went to gather coconuts floating on the river. It is suspected he’s been swept away,” said acting Manay police chief Major Meliton Sango. Two areas of Manay reported knee-deep floodwaters as the river overflowed, the officer told AFP by telephone. The civil defence office in Manila reported two damaged houses in Cortes, another town on Mindanao’s east coast, along with power cuts in three other towns. A total of 11,729 residents had been evacuated from Mindanao’s east and north coast ahead of landfall as a precaution. They were advised by authorities to remain at emergency shelters for now. Jelawat was forecast to plough across the south of the country for the rest of the day, with the weather service warning of heavy rain, especially in the mountainous interior. “Under these conditions, flooding and rain-induced landslides are likely especially in areas that are highly or very highly susceptible to these hazards,” its latest storm bulletin said. The coast guard reported widespread shipping disruptions as sailing restrictions were put in place to prevent accidents in rough seas. More than 100 vessels were stranded or sought shelter at ports, with more than 5,000 passengers stuck at the port of Manila as ferry services to the central and southern Philippines were suspended, it said. About 20 storms and typhoons hit the country or its surrounding waters per year, killing hundreds and keeping many of the areas of the country poor. Jelawat is only the 11th this year, so far equalling a record low set in 1998, according to weather service data. – AFP Floods push crocodiles into Australian towns CANBERRA: Stranded residents sheltered on a hospital roof as flash floods swamped northeastern Australia yesterday, with raging waters severing roads and flushing crocodiles into towns. Rescue teams evacuated more than 300 people while military helicopters were dispatched to help inundated areas cut off by the floods. Damage was reported along an expanse of coastline that stretched about 400km across northern Queensland state. Resort manager Cassie Hounslow said entire houses were submerged in Mossman, a small inland town at the foot of the heritage-listed Daintree rainforest. “Houses have gone under. I mean some houses have been fully engulfed.” Tumbling boulders triggered by a landslide had “smashed one of the roads” while a major highway out of Mossman was seriously damaged, she said. With another deluge expected this week, Queensland Treasurer Cameron Dick said the unfolding disaster would have a “billion-dollar impact” on the state. Nine people, including a seven-year-old patient, huddled for safety overnight on the roof of a hospital in the largely Aboriginal settlement of Wujal Wujal. “We know that those people are in a desperate way now,” said Wujal Wujal Aboriginal Shire Council chief executive Kiley Hanslow. Police said the group clambered to a safer location before floodwaters rose again yesterday afternoon. An attempt to evacuate those remaining in the town had to be abandoned, the shire council said. “Unfortunately the helicopters couldn’t get through ... it was too dangerous to get the choppers through,” the council said in a statement on social media. “They will try to get through again as soon as they can.” Surrounded by a mountainous hinterland of tropical rainforest, hard-to-reach Wujal Wujal is one of the most disadvantaged regions in Australia. Hanslow told national broadcaster ABC the A crocodile being wrangled from floodwaters in Ingham. – AFPPIC/ COURTESY OF JONTY FRATUS oQueensland pummelled by damaging winds and ‘next level’ rain town – typically home to 300 people – was a “sea of dirty water and mud”. “There’s also crocodiles swimming around in that water now.” Queensland police commissioner Katarina Carroll said floodwaters would likely wash “crocs and all sorts of other things” into residential areas. “You would recall from past events we’ve had sharks, crocs, you name it,” she told reporters. Wildlife officers in the rural town of Ingham used a lasso to catch a crocodile that had been bathing in shallow water next to houses. Queensland has been pummelled by damaging winds and driving rain in the wake of Tropical Cyclone Jasper, which barrelled in off the Coral Sea late last week. The tourist hub of Cairns has been almost completely surrounded by the floods, which have washed over major highways running into the city of 150,000 people. Locals used ropes to try and rescue helpless livestock swept away by the torrents on the outskirts of Cairns. Stagnant pools of floodwater lapped against the wings of planes parked at the Cairns International Airport. “This level of rainfall is next level,” Queensland Premier Steven Miles told reporters yesterday. “We deployed literally every boat we could get our hands on in Cairns to evacuate those who couldn’t safely evacuate themselves.”– AFP

TUESDAY | DEC 19, 2023 9 B R I E F SCYBER ATTACK DISRUPTS IRAN PETROL STATIONS TEHRAN: A hacking group that Iran accuses of having links to Israel claimed it carried out cyberattacks that disrupted services at petrol stations across Iran yesterday, Iranian and Israeli media reported. Oil Minister Javad Owji earlier told Iranian state TV that services had been disrupted at about 70% of Iran’s petrol stations and that outside interference was a possible cause. Iran’s state TV said the Predatory Sparrow group claimed it was behind the disruption. Israeli local media outlets also reported the claim. “This cyberattack was carried out in a controlled manner to avoid potential damage to emergency services,” Predatory Sparrow said in its statement, according to Iranian media. – Reuters EXPLOSION REPORTED OFF YEMEN COAST DUBAI: A “possible explosion” struck a key shipping lane off Yemen yesterday, two maritime agencies said, the latest incident in the vital waterway threatened by Huthi rebel attacks. The British military’s UK Maritime Trade Operations issued a warning of a potential explosion near a vessel passing through the Bab al-Mandeb strait that separates the Arabian Peninsula from the Horn of Africa. “The captain reported the explosion occurring two nautical miles off one of the vessel’s quarters while it was transiting,” said maritime security firm Ambrey. Yemen’s Iran-backed Huthi rebels have launched drone and missile attacks on vessels entering the Red Sea through the strait. – AFP Israel faces mounting global outrage oWHO denounces destruction and ‘bloodbath’ at Gaza hospitals GAZA CITY: Israel faced mounting international pressure yesterday over the rising civilian death toll and destruction of hospitals in Gaza, as it pressed on with its war against Hamas in the besieged Palestinian territory. The United Nations Security Council was set to vote early today on a new resolution calling for an “urgent and sustainable cessation of hostilities” in Gaza. The Gaza Health Ministry said more than 18,800 people, mostly women and children, have been killed in Israel’s campaign. It said dozens were killed in Israeli strikes on Sunday. Following months of fierce bombardment and fighting, most of Gaza’s population has also been displaced and people are grappling with shortages of fuel, food, water and medicine. Fewer than one-third of Gaza’s hospitals are partly functioning, according to the UN, with the World Health Organisation (WHO) denouncing on Sunday the impact of Israeli operations on two hospitals in the north of the territory. WHO director-general Tedros Adhanom Ghebreyesus said the agency was “appalled by the effective destruction” of Kamal Adwan Hospital, where Israeli forces carried out a multi-day operation against Hamas. “Many health workers were reportedly detained, and WHO and partners are urgently seeking information on their status.” Outside the hospital courtyard, which showed tank and bulldozer tracks, Abu Mohammed, who came to look for his son, stood crying. “I don’t know how I will find him,” he said, pointing to the debris. The Israeli army pulled out of the hospital on Sunday after an operation lasting several days, claiming it had been used as a command and control centre by Hamas. Israel said that before entering the hospital, it had negotiated safe passage for the evacuation of most of the hospital. The WHO also said Israeli bombing had reduced the emergency department at Al-Shifa Hospital to “a bloodbath”. The Hamas-run Health Ministry said an Israeli strike on Sunday hit Nasser Hospital in southern Gaza’s main city of Khan Yunis, killing one person and injuring seven others. And the ministry said Israeli forces had stormed Al-Awda Hospital in northern Gaza on Sunday and detained medical staff following several days of siege and bombing. Near Gaza’s northern border crossing at the Israeli city of Erez, the Israeli army said it had uncovered the biggest Hamas tunnel so far. An AFP photographer reported that the tunnel was large enough for small vehicles to use. Israel said the tunnel cost millions of dollars and took years to construct, featuring rails, electricity, drainage and a communications network. The Israeli government has come under growing pressure from the international community to pause the fighting and do more to protect civilians. “I would not be surprised if people start dying of hunger, or a combination of hunger, disease, weak immunity,” said Philippe Lazzarini, head of UN agency for Palestinian refugees UNRWA. – AFP A medical staff inspecting the damage in a room following Israeli bombardment at Nasser Hospital. – AFPPIC Belgium holds mega-trial after covert apps cracked BRUSSELS: Belgium yesterday started one of the biggest drug trafficking trials in its history, with over 120 defendants in the dock thanks in large part to investigators cracking encrypted messaging apps. Suspects from Belgium, Albania, Colombia and North Africa accused of involvement in a vast criminal operation face justice at the hearings in a high-security courtroom in the former Nato headquarters in Brussels. The alleged multi-national drug smuggling enterprise – active from 2017 to late last year – involved numerous criminal gangs and was dismantled following raids by police in Belgium, Germany and Italy. Prosecutors said cocaine and cannabis were transported in containers from South America and Morocco and smuggled through ports in Belgium, the Netherlands, Germany and France before being sold across Europe. The case is in part based on evidence uncovered after investigators in Belgium, France and the Netherlands cracked the encrypted Sky ECC and Encrochat apps commonly used by criminals. By breaking into the apps, police said they were able to peer into the unguarded planning and operation of drug smuggling operations. Belgian Justice Minister Paul Van Tigchelt said 1,000 criminal convictions have already been secured in cases resulting from evidence from the encrypted apps. Belgium is home to the giant port of Antwerp, which has become the major gateway for cocaine smuggled into Europe. “It is clear that we are dealing very hard blows to organised crime in our country,” Van Tigchelt said ahead of the trial. The suspects in the mammoth trial starting yesterday face a raft of charges including drug offences, trafficking arms and belonging to a criminal organisation. In total 124 people are on trial, but some of them remain on the run and will be tried in absentia. However, most are in Belgian custody. The alleged ringleader of the enterprise was an Albanian citizen. Prosecutors said there was a “structure and hierarchy” between the various criminal groups involved and clear illegal commercial links. The suspects are notably accused of having jointly operated cocaine processing laboratories discovered on Belgian soil. The trial is expected to last several months and a judgment is not expected before mid-2024. – AFP Security scare for Biden as car hits motorcade WASHINGTON: A car crashed into a Secret Service vehicle attached to Joe Biden’s motorcade on Sunday, with the security scare startling the US president as he left his campaign headquarters in Delaware. After a loud bang caused by a sedan slamming into an SUV positioned in a nearby intersection 40m from Biden, security personnel rushed the president into a waiting vehicle and he was whisked away from the building in downtown Wilmington. “Both the president and first lady are fine,” a White House official told an AFP reporter who witnessed the incident. “At approximately 8.09pm (9.09am yesterday in Malaysia), a Secret Service vehicle securing the president’s motorcade route was struck by another vehicle in Wilmington,” said Secret Service spokesman Steve Kopek. “There was no protective interest associated with this event and the president’s motorcade departed without incident.” Pool reporters had gathered on the sidewalk outside the campaign offices – where the president and First Lady Jill Biden had dinner with staff – and had just finished shouting questions to Biden from a distance when they heard the crash and saw him with a surprised expression on his face. Agents sprang into action, cornering the silver car with Delaware licence plates and drawing weapons on the driver, who held up his hands. Reporters were then quickly rounded up by staff to join the motorcade as it departed the rain-drenched scene. – AFP

10 TUESDAY | DEC 19, 2023 Or download app on the AppStore or Google Play ENJOY A SEAMLESS READING EXPERIENCE. Read our iPaper at https://www.thesun.my/ Malaysia poised to be symbol of unity MALAYSIA has the opportunity to fortify its position as a beacon of unity and social cohesion within its diverse population. The nation’s rich mosaic of cultures, ethnicities and religions presents challenges as well as opportunities to enhance its social fabric. The unity government, in line with its Madani principles, has implemented a series of strategies and initiatives to strengthen unity and social cohesion. These efforts pave the way for a harmonious and prosperous future. Looking ahead to an optimistic 2024 and beyond, the following tenets will set a fundamental pathway for a progressive nation. Embracing diversity Malaysia’s diversity extends beyond demographic characteristics. It serves as a profound source of strength and resilience. With a multiethnic composition comprising Malays, Chinese, Indians, Iban, Kadazan and various indigenous groups, each contributes distinct perspectives and experiences. In 2024, embracing this diversity means moving beyond tolerance to actively appreciate and celebrate different cultures. Public campaigns and community events that highlight the richness of Malaysia’s cultural tapestry can foster a sense of shared pride and belonging. Education as bedrock for unity Education plays a pivotal role in shaping the minds and attitudes of our youths. An inclusive education system that emphasises mutual respect, understanding and the value of diversity can lay the foundation for long-term social cohesion. Curricula should include the histories and contributions of all ethnic groups, promoting an understanding of the nation’s pluralistic identity. Furthermore, schools should be encouraged to organise intercultural exchanges and activities, enabling students from different backgrounds to interact, learn from each other and build friendships. Economic inclusivity for cohesive growth Economic disparities can be a significant barrier to unity. In 2024, policies geared towards economic inclusivity are essential. This involves ensuring equitable access to education, employment and economic opportunities for all, regardless of background. Government initiatives that support small- and medium- enterprises in ethnically diverse areas, alongside targeted assistance for underprivileged communities, can promote economic growth and social cohesion. Leveraging technology for social integration In this digital age, technology can be a powerful tool for promoting unity. Social media platforms and digital campaigns can be used to spread positive messages about diversity and unity. Moreover, technology can connect people across different regions, fostering a sense of national community. Initiatives such as virtual cultural exchanges or online forums discussing national unity can engage a broader audience, especially the youths. Political will and governance The role of the political leadership in promoting national unity cannot be overstated. Government policies and initiatives should reflect a commitment to social cohesion and equality. This involves not only equitable resource allocation but also a representation of all ethnic groups in government bodies and public sector undertakings. Political discourse should be free from divisive rhetoric, focusing instead on messages that unite and build bridges among different communities. Community engagement and grassroots movements Strong communities form the backbone of a united nation. Encouraging local initiatives and community-based programmes that foster inter-ethnic interaction and cooperation can significantly strengthen social bonds. These can range from communityservice projects to cultural festivals that involve participants from various backgrounds. Such grassroots movements empower citizens to take an active role in promoting unity. Thus, buttressing community-based organisations, such as the Residents Association and Neighbourhood Watch Areas, is vital. Conclusion As Malaysia strides into 2024, the commitment to strengthening unity and social cohesion is crucial. It requires concerted efforts from all sectors of society – government, education, businesses and communities. By embracing diversity, promoting inclusivity in all spheres, leveraging technology and fostering community engagement, Malaysia can build a more cohesive, harmonious and prosperous society. This vision of a united Malaysia that is embedded in the Madani values is not just a dream but a tangible goal that can be achieved with dedication and collective efforts, ensuring a better future for all Malaysians in the coming years. The writer is a senior Research Fellow at the National Institute of Public Administration. Comments: [email protected] “By embracing diversity, promoting inclusivity in all spheres, leveraging technology and fostering community engagement, Malaysia can build a more cohesive, harmonious and prosperous society. Encouraging local initiatives and community-based programmes that foster inter-ethnic interaction and cooperation can significantly strengthen social bonds. – BERNAMAPIC COMMENT by Dr Periasamy Gunasekaran

11 TUESDAY | DEC 19, 2023 US’s unrivalled military dominance I T is clear from military statistics that the US has an overwhelming superiority over China in most if not all spheres of any likely war. Be it in nuclear weaponry, warships, submarines, military aircraft or military satellites, the US alone – without allies in the West, and in Asia – has the resources to outshoot China. At the same time, the military capacity of the US is increasing every year. Latest reports show that the US spends more on national defence than China, Russia, India, Saudi Arabia, the UK, Germany, France, South Korea, Japan and Ukraine combined. US defence expenditure of US$870 billion (RM4.07 trillion) in 2022 dwarfed that of China’s estimated US$230 billion (RM1.07 trillion). The US is also the world’s leading armament producer. The US accounted for 40% of the total volume of international arms transfers between 2018– 2022. Japan and Australia, members of the QUAD (also comprising the US and India) that set up to counter China in the Indo-Pacific region, are the US biggest weapons customers while Taiwan, under President Tsai Ing-Wen, has purchased several billions of dollars worth of weaponry during President Joe Biden’s administration. Meanwhile, current wars in Gaza and Ukraine are keeping US armament factories busy and ensuring big cheques for the political and military lobbies supporting them. They are also keeping investors in the US “defence” companies happy. Any war, even a heightened threat in the Asian and Pacific region, will undoubtedly produce enormous returns to the US and Western military-industrial complex even if the world’s share markets drop. China, despite its enormous industrial and manufacturing capability, ranks fourth in the world in armament exports after the US, Russia and France, with an estimated 5.2%, or one-eighth of the US volume. China’s armament exports fell by 23% from 2013-17 to 2018-2022 while that of the US increased by 14%. These figures speak for themselves as to which country is a more militarised one, and which country can be considered to be benefitting from wars with its consequential negative impact in the world. US encirclement of China Not satisfied with military superiority, US politicians and military leaders are engaging in attempts to inflate China’s military capabilities and expenditures to justify further increases in US spending. Together with these efforts aimed at scaremongering through hyping the China challenge to US military supremacy, the US has long had its military bootprint and agenda all around the world, especially in the Asian region. Within the IndoPacific region, the US has for more than 70 years implemented a “first island chain” security network aimed at projecting US military power. Initially directed against the Soviet Union after the end of the Second World War and following the outbreak of war in Korea in 1951, it is now aimed primarily against China whose coastline the US considers as potential enemy territory. The midpoint and key part of this first island chain is to be found in Taiwan, popularly referred to by American policymakers as their “unsinkable aircraft carrier”. In addition, a second American security island chain has been developed with Japan, the Philippines, Australia and the islands of Micronesia as components. As with the first chain, the target is China. Within these two island chains are stationed hundreds of thousands of US military personnel. A recent US congressional report revealed that 375,000 US military personnel are presently based in 66 distinct “defence”, that is, military installations in the Indo-Pacific region. In contrast, China has one foreign military base – not in Asia but in Djibouti, Africa. All evidence shows conclusively that China’s military capacity and capabilities are far inferior to the US for now and in the foreseeable future. At the same time, Chinese leaders have repeatedly declared that China has no intention to challenge or unseat the American position in the region. This does not mean that China will be a sitting duck or an easy target should the US decide to take on China and what Chinese leaders regard as the country’s national interest and legitimate position in the Asian region. Hence, China today is in the midst of two major campaigns to turn its People’s Liberation Army into a “world-class military” by 2027 and to achieve “national rejuvenation” by 2049. Will China’s growing technological prowess and nuclear arsenal be sufficient to deter the US from the war, which some members of the American leadership are stoking, and in which they appear in a hurry to initiate for fear that US military superiority will be lost soon? Latest “war” front Meanwhile, the US has opened up new fronts to take down China. At the end of her visit to Beijing in late August, in which it was announced that the US and China were to hold regular conversations about commercial issues and restrictions on access to advanced technology to reduce tensions between the world’s two largest economies, US Commerce Secretary Gina Raimondo stated: “I think it is a very good sign that we agreed to concrete dialogue, and I would say, more than just kind of nebulous commitments to continue to talk, this is an official channel.” Three months later, speaking at an annual national defence forum in California, she engaged in ratcheting anti-China sentiment and walked back on her earlier declaration of stabilising relations between the two countries. Speaking to lawmakers, Silicon Valley and US allies for more funding to stop China from getting semiconductors and cutting-edge technologies, according to her, China is “the biggest threat we have ever had” and she stressed that “China is not our friend”. “Everyday China wakes up trying to figure out how to do an end run around our export controls, which means every minute of every day, we have to wake up tightening those controls and being more serious about enforcement with our allies.” Raimondo should realise that war between the US and China on any front – whether military, commercial, trade or economy – will not see only China as the loser. The US, even if it wins, will pay a heavy price, too. As with the rest of the world. Lim Teck Ghee’s Another Take is aimed at demystifying social orthodoxy. Comments: [email protected] Integration of electronic immunisation system lauded WHEN I was caring for my first child during her first year, I shouldered most of the responsibilities since my husband was working in another state. Occasionally, my mother would accompany me for immunisation appointments. Juggling a full-time job and single-handedly caring for my child proved to be stressful, especially when trying to stay on top of immunisation appointments. The situation was exacerbated as I lived a distance from my parents and in-laws. Furthermore, the challenge of finding an affordable babysitter added to my emotional stress and fatigue. However, after the birth of my second child, managing my children’s healthcare became more seamless, thanks to the MySejahtera application. The Health Ministry’s integration of electronic immunisation records into the application has significantly streamlined the immunisation process. Relying on this secure application for my health records and my children’s immunisations has had a positive impact on my well-being. I now spend less time organising physical documents, allowing me more time for rest and other tasks. I have also noticed a change in the attitudes of healthcare providers, who now have less paperwork. Medical staff seem more relaxed as they have to sift through fewer records, and can swiftly retrieve patients’ histories during medical visits, enhancing their overall efficiency. In addition, I can schedule my children’s immunisation appointments directly through the MySejahtera application, putting clinic services and availability at our fingertips. Scheduling visits has become less stressful as I do not have to spend time on the phone making appointments, which is now only a few clicks away, and it can be done at any time day or night, even when clinics are closed. The electronic system has helped parents like me and healthcare providers in pragmatic ways. As a busy mother of two, I appreciate the convenience offered by the MySejahtera application, enhancing the accessibility of healthcare services. Recently, I was delighted when the new health minister, Datuk Seri Dr Dzulkefly Ahmad, expressed his commitment to implementing the digital transformation plan. Concerned that the Health White Paper, presented six months ago, may be overlooked, I find it reassuring that the ministry is prioritising it. MySejahtera and other digital health solutions can benefit the public tremendously. Parenting today is different compared with our parents’ era. We face unique challenges, such as dual household income necessity and smaller urban nuclear families with limited support. We need new forms of assistance, including technological advancements in healthcare management. The assurance of having accurate and accessible immunisation data and simplified appointment scheduling, not only gives me confidence as a parent, but allows me to to utilise my time more effectively. The Health Ministry’s move towards digitalising child immunisation is a commendable step forward. Siti Ahmad Selangor LETTERS [email protected] “Latest reports show that the US spends more on national defence than China, Russia, India, Saudi Arabia, the UK, Germany, France, South Korea, Japan and Ukraine combined. ANOTHER TAKE BY LIM TECK GHEE US defence expenditure of US$870 billion in 2022 dwarfed that of China’s estimated US$230 billion. – REUTERSPIC

HEALTH HEALTH 12 TUESDAY | DEC 19, 2023 Addressing childhood body dissatisfaction AS we approach the topic of childhood body dissatisfaction, a recent study conducted by British researchers sheds light on a potential link between discontent with one’s body during childhood and an elevated risk of depression in adolescence, particularly among young girls. The implications of this study has prompted calls for preventative measures and strategies to safeguard children’s mental health. While public health campaigns advocating healthy eating and physical exercise among children are well-intentioned, the study from the University College London (UCL), published in The Lancet Psychiatry, highlights the unintended consequences related to body shape and size. The research, based on data from the Millennium Cohort Study — a longitudinal cohort representing the population of British children born between Sept 1, 2000 and Jan 11, 2002 — included 13,135 participants. The study found that a high body mass index (BMI) at the age of seven was associated with increased body dissatisfaction at age 11 and a subsequent rise in depressive symptoms at age 14. These symptoms encompassed low mood, loss of pleasure and poor concentration. The link between body dissatisfaction and depression was particularly pronounced, suggesting that addressing discontent with one’s appearance could be pivotal in preventing depressive symptoms in the long term. One of the study authors, Dr Francesca Solmi, emphasised the importance of recognising the potential mental health impacts of efforts to reduce weight in children and young adolescents. The study found that body dissatisfaction was a significant contributor, accounting for 43% of the association, with girls being more affected than boys. While the study did not delve into certain biological or environmental factors explaining the link between high BMI and later depressive symptoms, it underscored the need to consider the unintended consequences of public health campaigns. These campaigns, which aim to combat the rising cases of overweight and obesity, might inadvertently contribute to children feeling uneasy and Children who are dissatisfied with their bodies may be at higher risk of depression as adolescents. – 123RF oCrucial step towards adolescent mental health Festive hangover recovery THE festive season is often synonymous with excesses of all kinds, whether in terms of food or sugary and alcoholic drinks. While it is strongly recommended to limit your alcohol intake, it is a safe bet that some revellers will overindulge this holiday. But do not panic these three foods can help you cope with the inevitable hangover. Hangovers are typically the after-effects of a boozy night out, characterised by nausea, headaches, muscle aches, fatigue and other feelings of weakness caused by excessive alcohol consumption. Moderation is the best way to avoid them, but several tips and foods can help mitigate the damage caused by such excesses. Here are three foods that might be helpful this festive season. Lemon to the rescue This sour-tasting citrus fruit is a detoxifier that cleanses the body. It is not a miracle solution, but it does help eliminate toxins from the body while rehydrating it. Moreover, lemons are rich in vitamin C, which stimulates the immune system and aids digestion. All of this makes lemon an essential ally in the fight against hangovers. It is best consumed mixed with water and grated ginger to relieve nausea and upset stomachs. It can also be drunk as lemon tea or even with sparkling water and a pinch of salt. Honey for sweet salvation Less well-known than lemon, honey is nonetheless an effective ally against hangovers, thanks to its high fructose and glucose content. Not only does honey give you the energy you need to face a difficult morning, but it also helps restore blood glucose levels and has properties that help soothe upset stomachs and combat exreme nausea. It can be eaten on toast or even with a spoonful, but the best way is to add a spoonful or two of honey to lemon tea. Banana for a boost A hangover means dehydration and the loss of potassium, an essential mineral for the body to function properly. That’s why it’s a good idea to eat foods packed with potassium, such as spinach, prunes and bananas. This makes it easier for the body to recover and helps combat all hangover symptoms, including fatigue. A handy trick if you need to get up and crack on with the festive season. - ETX STUDIO uncomfortable about their bodies. The first author of the research, Emma Blundell, highlighted the delicate balance required in public health messaging. While promoting a healthy diet and exercise is crucial, there is a need to ensure that interventions to reduce BMI in childhood do not inadvertently increase body dissatisfaction and harm children’s mental health. Moving forward, the researchers emphasise the necessity of exploring solutions targeted at addressing concerns about physical appearance among the younger population. They recommend that reducing body dissatisfaction could be a vital strategy in preventing depression, especially in girls, during formative years when social environments and peer relations significantly impact mental well-being and selfesteem. As we delve into the complexities of adolescent mental health, it is crucial to recognise the interconnectedness of physical and mental well-being. The study calls for a reevaluation of existing approaches and the development of comprehensive strategies that not only promote physical health but also foster a positive self-image and protect the mental health of our younger generations. In 2021, the World Health Organisation reported that 14% of adolescents and young adults aged 10 to 19 worldwide suffer from mental disorders. This underscores the urgency of addressing factors, such as body dissatisfaction, that contribute to mental health challenges among youth. By prioritising both physical and mental well-being, we can work towards creating a healthier and more supportive environment for the next generation. - ETX STUDIO Lemon can be an essential ally for getting over a hangover.

TUESDAY | DEC 19, 2023 Editorial T: 03-7784 6688 F: 03-7785 2624/5 E: [email protected] Advertising T: 03-7784 8888 F: 03-7784 4424 SCAN ME E: [email protected] Samenta backs low-value goods tax, says will lead to fairer competition PETALING JAYA: The Small and Medium Enterprises Association of Malaysia (Samenta) has come out in full support for the implementation of the low-value goods (LVG) tax that will effect from Jan 1, 2024. National president Datuk William Ng (pic) said Samenta has been among the early proponents of the equalising tax and is grateful that the government is taking steps to implement it despite strong lobbying from online marketplaces. “For many years, our local retailers and online sellers, especially SMEs, are fighting an unfair competition against foreign sellers. “While local retailers have to pay tax at various points of the supply chain, including when bringing in components or raw materials as well as finished goods into Malaysia, we are being undercut by foreign sellers and local dropshippers who have largely escaped from paying tax to Malaysia on their products. This artificially distorts pricing in favour of these foreign sellers,” he added. Additionally, Ng said directly delivered foreign products may not have undergone the same stringent quality and safety tests for electrical goods, foodstuff and pharmaceutical products that Malaysian manufacturers and importers are subject to and this could pose fire, safety and health risks to Malaysian consumers. “The LVG tax is good news for our local retailers, and will help narrow the inequality and allow local sellers, including SMEs, to compete on the basis of superior service, proximity, and better local consumer protection. The mandatory registration as well as 10% tax on LVG will also drive additional revenue to Malaysia and support the ringgit, while promoting domestic e-commerce,” said Ng He added that they will encourage Malaysians to buy from local retailers and sellers – not only in supporting the economy, but also better protect themselves and their families from fraud and fire, safety and health risks. “We urge online marketplaces to immediately facilitate the implementation of the LVG tax for both local and foreign sellers who have met the threshold, and to refrain from passing additional costs to local sellers. It is the social responsibility of these marketplaces to help support Malaysian sellers and made-in-Malaysia products, given the extensive regulatory facilitation, promotional support and financial aid given to them by various government agencies for many years,” said Ng CGC Digital, MDEC, PayNet in pact on MSME financing PETALING JAYA: CGC Digital Sdn Bhd, Malaysia Digital Economy Corporation (MDEC), and Payments Network Malaysia (PayNet) have signed a collaboration agreement aimed at driving financial empowerment and fostering inclusivity among micro, small and medium enterprises in Malaysia through pioneering Alternative Credit Scoring solutions. This tripartite partnership signifies a collective commitment to address a RM90 billion gap in financing for MSMEs. The digital tool to power the bridging of the financing gap will be the Alternative Credit Scoring undertaken by CGC Digital as it explores alternative data to facilitate the development of its model. The partnership will be led by CGC Digital in providing the digital guarantee, MDEC in connecting fintech players and championing policies/frameworks, and PayNet in utilisation of its payments data. PayNet as the national payments network has over the years aggregated a sizeable data through its product range – DuitNow (also known as Malaysia’s National QR Code), JomPAY and FPX. MSMEs that are not registered with the Companies Commission of Malaysia but may have registration under local councils could have transaction data in any of these data points. “Collaborating with MDEC and PayNet, CGC Digital has identified potential fintech companies to embark on proof-of-concept initiatives aimed at validating the effectiveness and viability of Alternative Credit Scoring model. This initiative is aimed to empower MSMEs and bridge the financing gap by democratising access to credit guarantee and financial services in advancing financial inclusion,” said CGC Digital CEO Yushida Husin. MDEC CEO Mahadhir Aziz said that the collaboration is a testament to their commitment to drive innovation in the financial sector and address the MSME financing gap. “The Malaysia Digital (MD) national strategic initiative and suite of dynamic oTripartite partnership aims to address RM90 billion gap through Alternative Credit Scoring solutions PeMangkinMD programmes aim to transform our nation’s digital capabilities, foster the growth of tech companies, and boost the digital economy. We are optimistic to facilitate more partnerships between financial institutions, fintech companies and relevant ecosystem partners with a common goal of revolutionising credit assessment methods which will be a game changer for the financial sector,” he added. The MoU is envisaged to spark ideas to promote and scale more pilots using Alternative Credit Scoring data points among industry players. According to PayNet chief commercial officer Gary Yeoh, validation of Alternative Credit Scoring’ effectiveness as a complementary tool in the credit assessment of businesses across all sizes will catalyse new frontiers on how credit is assessed and this could be a tipping point in a much-needed financing ecosystem where traditional banks are limited by conventional credit scoring tools. Using innovative solutions – such as artificial intelligence and machine learning – for insights and data from non-traditional sources such as transaction data, utility and assessment payments, rental payments, mobile payments and more can potentially be used to assess MSMEs’ creditworthiness based on historical payment records. Pineapple industry has potential to expand in Sarawak: Board JOHOR BAHRU: The national pineapple industry has the potential to be expanded in Sarawak considering the peat and mineral soils available in the state, said Malaysian Pineapple Industry Board (LPNM) chairman Sheikh Umar Bagharib Ali. He said there are four contributing success factors for the pineapple industry in Sarawak which is still rich in land resources compared with the peninsula. In fact, he said, about 2.8 million hectares of land have been identified as having the potential for agriculture. “Sarawak has clear leadership direction to achieve its vision and mission in the pineapple industry. In fact, Sarawak Premier Tan Sri Abang Johari Tun Openg himself has announced the target to expand up to 20,000 hectares for pineapple cultivation in the state by 2030. “Hence, pineapple can be an option here, in addition to the suitability of both peat and mineral soils found in Sarawak, so pineapple (farming) can be expanded immediately,“ he said in a statement. Sheikh Umar Bagharib made a three-day working visit to Kuching, Sarawak, from Wednesday last week, including attending the launch of the Sarawak Pineapple Industry Seminar 2023, a visit to Sungai Mata pineapple plantation, and attending several meetings related to the industry. He said Sarawak LPNM has played an active role since its establishment in 2010. To date, the pineapple plantation acreage in the state stands at 3,000 hectares, which shows an average increase of around 7.6% per year. “To achieve the target of 20,000 hectares by 2030, the average increase for the fruit in Sarawak must be doubled to 14% annually, therefore, the Sarawak LPNM will continue to focus on this to realise its aspiration,” he said. Sarawak has a new pineapple variety, namely Sarawak Gold 1 or SG1, which has its own features including having a shorter harvesting period as well as its ability of high cultivation density which can expedite the development of the industry in Sarawak. Towards this end, a technical working group will be formed immediately with industry stakeholders to finetune pineapple development in Sarawak Sheikh Umar Bagharib said. – Bernama Sheikh Umar Bagharib lists four factors that contribute to the success of the pineapple industry in Sarawak. – LPNM PIC

BIZ & FINANCE BIZ & FINANCE TUESDAY | DEC 19, 2023 14 /theSunMedia FOLLOW ON YOUTUBE Malaysian Paper HLIB Research remains ‘overweight’ on O&G sector KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research has maintained its “overweight” rating on the oil and gas (O&G) sector and expects oil prices to remain in the US$80-US$90 (RM375-RM422) per barrel range in 2024. In a note yesterday, the research firm selected Bumi Armada Bhd as its top pick with a “buy” call and a target price (TP) of 71 sen. “This is due to the favourable outlook for floating production storage and offloading (FPSO) players and its undemanding valuation in anticipation of bumper earnings in the financial year 2024 (FY24) as the contribution from Armada Sterling V sets in,” it said. HLIB also favours Wasco Bhd (buy, with TP of RM1.27) for its niche expertise of being one of the only few pipe coaters in the world, which is well-positioned to capitalise on the rising demand for pipe coating services spurred by ongoing O&G upstream capital expenditure (capex) upcycle. However, the research house replaced Hibiscus Petroleum Bhd (buy, with TP of RM3.07) with Velesto Energy Bhd (buy, with TP of 25 sen) as the company is expected to rake in strong earnings growth in the coming quarters attributed to robust utilisation and charter rate of its jack-up (JU) rigs. “Overall, we maintain our ‘overweight’ rating on the O&G sector premised on continued production cuts from the Organisation of the Petroleum Exporting Countries (Opec) to pre-empt a potential lower demand arising from economic risk at least until mid-2024. “Besides, the oil price will be influenced by geopolitical uncertainties’ heightened risk premium of crude oil, and limited supply capacity growth as we believe the United States shale oil output growth will start slowing going forward, and restocking drive of the US Strategic Petroleum Reserve,” it said. HLIB Research anticipates Brent crude to stay at US$85 per barrel for 2024 and US$80 per barrel for 2025. “Downside risks to our projections include reactivation of spare capacity from Opec in the near term, de-escalation of geopolitical conflicts, China’s slower-than-expected oil demand growth and further deterioration of global economic conditions in 2024,” it said. HLIB Research noted that the fundamentals and outlook of the O&G sector remain intact, especially for oil and gas services and equipment (OGSE) players which are wellpositioned to ride on the ongoing upstream capex upcycle. It said the ongoing global offshore capex drive and rising local upstream activities from Petronas are expected to underpin the performance of OGSE providers. At the time of writing, Brent crude oil was trading up by 0.39% to US$76.89 per barrel. – Bernama APB Resources to buy 10.41% stake in Globetronics PETALING JAYA: Fabricator of design engineering equipment APB Resources Bhd is set to invest RM140 million to acquire 70 million shares or 10.41% of Globetronics Technology Bhd to expand into the electronic manufacturing services (EMS) and semiconductor industry. Upon the completion of this proposed acquisition, APB will emerge as the second-largest shareholder in Globetronics, which is a player in the EMS and semiconductor sector. APB intends to appoint a corporate representative to the board of Globetronics. APB believes that Globetronics is wellpositioned within the expanding electrical and electronics (E&E) market in Malaysia. Citing an IMR report, it said the market is on an upward trajectory, with projections indicating that E&E exports will reach RM629.1 billion in 2023 and continue to expand at a compound annual growth rate of 7.9%, potentially hitting RM867.83 billion by 2027. “This positive market outlook reinforces APB group’s decision to invest in Globetronics as a strategic and timely move,” APB said in a statement. Its board said that its investment in Globetronics marks an expansion into a highgrowth industry. “As the second-largest shareholder, we look forward to contributing significantly to Globetronics’ future direction and success. This acquisition is not just an expansion of our portfolio -it is a leap into a future of enhanced earnings potential and a stronger presence in the tech sector,“ it added. Furthermore, the group expects to engage in equity accounting for this investment as an associate company, following a review with its auditors. This approach will allow it to recognise a share of Globetronics’ profits in line with its equity interest. In addition, the financial move is anticipated to boost the group’s earnings and create an additional stream of income. APB’s share price closed at RM2.68 yesterday, giving the company a market capitalisation of RM303 million. Net foreign buying of RM143.4m on Bursa last week PETALING JAYA: Foreign investors became net buyers of domestic equities at RM143.4 million on Bursa Malaysia last week, after net selling to the tune of RM276.4 million in the week prior, said MIDF Research. In its weekly fund flow, the research house remarked that net foreign inflows into the bourse started on Thursday, following the US Federal Reserve’s decision to maintain interest rates. MIDF said foreign investors net bought RM125.3 million on Thursday and RM190.2 million on Friday, which overturned their net selling amount of RM172 million registered from Monday to Wednesday. “The top three sectors with net foreign inflows last week were utilities (RM91.2 million), healthcare (RM65.9 million) and technology (RM33.5 million). “Meanwhile, the top three sectors with net foreign outflows were financial services (RM66.8 million), industrial products and services (RM21.2 million) as well as energy (RM19.2 million),” it said in a statement. Furthermore, the research house said local institutions continued as net buyers for the second consecutive week, at a reduced pace at RM82.0 million, compared with the previous week which registered RM194.0 million. “They were net buying sectors such as plantation (RM58.6 million), healthcare (RM55.1 million) and financial services (RM51.0 million). “Local retailers shifted to net sellers of domestic equities, amounting to RM225.5 million, following two weeks of net buying,” it added. Sarawak forms panel to oversee oil & gas, green energy ventures SIBU: The Sarawak government has formed a special committee to oversee the state’s involvement in the oil and gas industry and green energy following the signing of memorandums of understanding (MoU) with two foreign companies in Dubai recently. Sarawak Premier Tan Sri Abang Johari Tun Openg said the committee, which will work together with the state-owned oil and gas company Petroleum Sarawak Bhd (Petros) and power supply company Sarawak Energy Bhd (SEB), is set to make strategic planning to intensify the state’s involvement in the collaboration. “Petros signed the MoU with Mubadala (Petroleum) while SEB signed the MoU with Masdar. So we are going to have a special committee on the improvement of the MoUs,” he told reporters after officiating the new Selangau District Office and Selangau Riverfront here yesterday. Mubadala Petroleum, the Abu Dhabi headquartered international energy company, has a collaboration with Petronas in its operation offshore Sarawak while Masdar, the Abu Dhabi-based clean energy giant, currently has an investment in Indonesia in floating solar. The MoUs were signed during the 28th Conference of Parties under the United Nations Framework Convention on Climate Change in Dubai early this month. Abang Johari said Sarawak is being recognised because it has not only netzero carbon but negative carbon. “This is a new word, new net-carbon, negative carbon. We are negative carbon, meaning less carbon, more oxygen.” – Bernama HLIB says the oil price will be influenced by geopolitical uncertainties’ heightened risk premium and limited supply capacity growth. – BERNAMAPIC oPremised on continued production cuts from Opec to pre-empt potential lower demand arising from economic risks Gentari, Japan’s IHI to develop green ammonia value chain PETALING JAYA: IHI Corporation, a Japanese engineering company, and Gentari Hydrogen Sdn Bhd, a wholly owned subsidiary of Petroliam Nasional Bhd’s (Petronas) clean energy arm Gentari Sdn Bhd, have signed a memorandum of understanding (MoU) that will see the two parties deepening their collaboration to further develop the hydrogen industry. IHI and Gentari will jointly explore the establishment of a global green ammonia value chain which spans the production, transportation, storage and utilisation of green ammonia in Asia-Pacific and other areas of mutual interest. The parties will also explore progressing the commercial utilisation of IM270, a fully ammoniapowered gas turbine, developed by IHI with support from Japan’s New Energy and Industrial Technology Development Organisation. Anticipating commencement by 2026, this commercial demonstration could potentially be the world’s first fully ammonia-powered gas turbine to be deployed. With this collaboration, IHI and Gentari aim to create demand for green ammonia in Malaysia and the broader Asia-Pacific, accelerating the adoption of clean hydrogen as a viable energy transition lever, in line with Malaysia’s National Energy Transition Roadmap and Hydrogen Economy & Technology Roadmap as well as the region’s net zero aspirations.

BIZ & FINANCE BIZ & FINANCE TUESDAY | DEC 19, 2023 15 M’sian construction sector on mission to Indonesia oPromotion tour part of Matrade’s export acceleration initiative PETALING JAYA: Malaysia External Trade Development Corporation (Matrade) is set to spearhead an initiative aimed at promoting Malaysian construction and related companies through Matrade’s Export Acceleration Mission (EAM) on construction and related services to Indonesia to take place from yesterday to Thursday. The four-day mission will feature few series of programmes with the Ministry of Public Works and Housing Indonesia, Otorita Ibu Kota Nusantara, Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Kalimantan Utara, Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas Batam, Nusantara Global, Himpunan Pengusaha Muda Indonesia including presentation and pitching sessions as well as prearranged business meetings with potential partners which to be organised by Matrade. These e n g a g e m e n t s will promote and enhance exports of Malaysian construction and related services to Indonesia. Matrade deputy CEO Sharimahton Mat Saleh said the construction industry in Indonesia is estimated to reach Rp333 trillion (RM99 billion) in 2023, which includes 47% in the civil sector and 53% in the building sector. “The Indonesian government is committed to increase investment in the infrastructure sector. Matrade has organised flagship events and programme dedicated to accelerate Malaysia’s exports of products and services to Indonesia. This ongoing initiative underscores Matrade’s commitment to assist Malaysian firms in securing potential business prospects through strategic partnerships or joint ventures. Notably, this effort will focus on the emerging opportunities presented by Indonesia’s new capital, Nusantara in Kalimantan,” she added. The Malaysian delegations, comprising representatives from Matrade, Works Ministry, and Invest Selangor include a total of 24 companies and g o v e r n m e n t department with 45 representatives this year. They offer high-quality services in areas such as construction, architecture, property projects, engineering services, electronics, and infrastructure. The mission is strategically aimed at project creation, development, implementation, and sustainability. In 2022, Malaysia’s total exports of construction services was valued at RM6.1 billion while imports valued at RM4.8 billion. The overall Malaysia’s export in services stood at RM140.3 billion. Strengths of Malaysian construction sector are attributed by capabilities of Malaysian construction companies to implement projects namely construction of buildings, roads and highways, railways, bridges and airports, water treatment and power plants; steel structure fabrication, installation and erection; mixed development projects including housing, hotels, leisure and luxury residences; and building maintenance, including for highrise towers. The Malaysian delegation will comprise representatives from Matrade, Works Ministry, and Invest Selangor. It will include a total of 24 companies and government department with 45 representatives this year. - bernamapix Critical Holdings scores 42% premium in market debut KUALA LUMPUR: Critical Holdings Bhd yesterday premiered as a public listed company on the ACE Market of Bursa Malaysia Securities with share price opening at RM0.50, equivalent to a 42.9% premium over the issue price of RM0.35, with an opening volume of 25.98 million shares. A total of 13,038 applications for 1,655,806,600 issue shares were received from the Malaysian public, representing an overall oversubscription rate of 88.08 times. For the bumiputra public portion, a total of 7,379 applications for 739,259,700 issue shares were received, representing an oversubscription rate of 78.55 times, while 5,659 applications for 916,546,900 shares were received for the remaining public portion, representing an oversubscription rate 97.62 times. Critical Holdings raised RM26.02 million through an offering of 74,348,000 new ordinary shares at RM0.35 each. Of the total proceeds raised, RM6 million has been allocated for the acquisition of the new regional office, RM1.6 million for capital expenditure and RM4.5 Petronas signs contracts for Suriname blocks KUALA LUMPUR: Petronas Suriname E&P B.V. (Petronas Suriname E&P), a subsidiary of Petronas, has signed the production sharing contracts for Suriname’s offshore Blocks 63 and 64 with Staatsolie Maatschappij Suriname N.V. Petronas Suriname E&P won the blocks located in the Guyana-Suriname Basin during the Suriname Demerara Bid Round 2022-2023 in June 2023. Block 63 has an area of 5,425 sq km and is located approximately 200km offshore Suriname in water depths of about 1,700m. Block 64 is 6,262 sq km in size and is located 250km from the shore in slightly shallower water of 1,300m. Petronas Suriname E&P has 100% participating interest in and is the operator of Block 63. TotalEnergies will operate Block 64 with 40% participating interest, with the remaining interest equally split between Petronas Suriname E&P and QatarEnergy. Petronas vice-president of exploration Mohd Redhani Abdul Rahman said, “Securing these blocks is crucial to Petronas’ effort in unlocking Suriname’s vast resource potential in the basin. This underscores the aspiration to build our presence in the country and strengthen our international portfolio, especially in the Americas. “We look forward to working alongside the host authority and our partners to achieve more significant milestones while ensuring secure, affordable and sustainable energy to the market.” Petronas Suriname E&P currently operates Block 52 in a 50:50 partnership with ExxonMobil Exploration and Production Suriname B.V., as well as Block 48 with 100% participating interest. It also has a 30% participating interest in Block 53. Other partners in the block are CEPSA Suriname, S.L. and operator APA Suriname Corporation LDC. Bank Negara issues commemorative coins in conjunction with UPSI’s 100th anniversary KUALA LUMPUR: Bank Negara Malaysia (BNM) has announced the issuance of commemorative coins in conjunction with the 100th anniversary of Universiti Pendidikan Sultan Idris (UPSI). In a statement yesterday, BNM said the coins will be issued in two denominations namely the squareshaped Coloured Sterling Silver Commemorative Coin (proof ), and Nordic Gold Brilliant Uncirculated (BU) Commemorative Coin. The square coin, Malaysia’s first, is made of sterling silver with 92.5 purity and weighs 43g. It has a face value of RM10 and will be sold at RM440 per piece. The Nordic gold (BU) coin is made of copper and several other metals and weighs 8.5g. The coin has a face value of RM1 and will be sold at RM16.50 per piece. The mintage quantity of sterling silver is 1,000 pieces while the Nordic gold (BU) is 5,000 pieces. These commemorative coins are also available for sale in a set of two, with each set priced at RM495. The set comprises one coloured sterling silver proof coin and one Nordic gold proof coin. A total of 1,000 sets will be available for purchase. From left: Critical Holdings Bhd independent nonexecutive director Kung Siew Kyan, Tan, non-independent executive director and COO Chow Chin Seang, independent nonexecutive directors Teh Wei Keong and Saw Soo Fang. million for the expansion of sales and technical team. Meanwhile, RM9.92 million will be for working capital, and remaining RM4 million will be allocated for estimated listing expenses. Critical Holdings non-independent executive director and CEO Tan Si Lim, said, “Today marks a major corporate milestone for us at Critical Holdings as we make our debut on the ACE Market of Bursa Malaysia Securities Bhd. The listing of Critical Holdings signifies progress in our commitment to providing MEP engineering solutions and services. We are confident in our capabilities and are excited to continue growing as a company as we leverage on our expertise to contribute to the engineering industry.”

COMMUNITY COMMUNITY 16 TUESDAY | DEC 19, 2023 Buy Malaysian drive an uphill batPUTRAJAYA: The escalating humanitarian crisis in Palestine since early October has ignited a global wave of boycotts against Israeli goods and international brands with alleged Zionist links. Malaysians have also rallied to boycott products and companies with ties to Israel as a symbol of solidarity with Palestine. At the same time, Buy Malaysian campaigns are also gaining traction with lists of locally produced goods ranging from food products to essential items as well as household goods including Malaysian furniture brands flooding social media. The situation is a blessing in disguise for local manufacturers as Malaysian consumers shifted their preference for local products which are on par with international brands, with many of them recognised globally. Noting the positive development, the Domestic Trade and Costs of Living Ministry (KPDN) sees the situation as the best opportunity for local manufacturers to leverage the existing platforms to promote their products. “The boycott issue is rather sensitive and it is within the consumer’s rights. The ministry has to take a neutral approach as we have a role to play in protecting (the interests of) local products as well as foreign goods; local businesses can seize the day by promoting their goods as substitutes for foreign products that are shunned by buyers,” KPDN Trade, Distribution and Business Sector senior director Datuk Rohaizi Bahari told Bernama in an exclusive interview recently. Given the current scenario, he hopes demand for local products could be sustained and not seasonal, noting that local entrepreneurs should also improve the quality of their products and services to be comparable with foreign products and offer affordable prices. There is no doubt the quality of local products has evolved over time especially in product development including packaging, design and product certification marks, which indicate the products have been tested and certified to meet specific standards or requirements, both locally qnd at the international level. Against this backdrop, the ministry says encouraging the public to buy local goods has been an uphill battle as the products and services are not widely marketed and are not aggressively promoted. Having gone through a long process of bringing the product to life and testing does not mean the local manufacturer’s journey is over. Getting it on store shelves or at major supermarkets as well as at premium areas is the next big leap. In a fastpaced and competitive world, manufacturers of unknown brands have to take a backseat as their products are not well positioned to attract local buyers. It is no wonder that the Buy Malaysian Goods Campaign (KBBM), which entered its 39th year, has not achieved its target of fuelling the patriotic spirit among Malaysians to buy and use domestic products or services. In fact, the campaign, which kicked off in 1984 and was rebranded in 2009, had introduced various strategic initiatives to stimulate domestic economic growth through boosting consumption of local goods. “In Malaysia, given the choice between imported and local products, consumers tend to favour foreign items, a far cry from the situation in Thailand as patriotism is ingrained in the Thai society, which gives priority to Deputy Domestic Trade and Costs of Living Minister Fuziah Salleh inspects “Buy Malaysian Goods” products during the launching of the Buy Malaysian Goods Campaign at a supermarket. – BERNAMAPIC oTarget of fuelling patriotic spirit among Malaysians on choosing domestic products or services not achits own products. “In Thailand, many of their products are promoted and are placed at premium locations such as inside the airport, major supermarkets as well as at the entrance of shopping premises,” he said. The high awareness among Thais in their preference for local products can be attributed to the country’s policy, which makes it compulsory for manufacturers and traders to give priority to local goods over imports. In Malaysia, there is no specific policy in encouraging the use of local goods and to date, only the Buy Malaysian Products campaign is leveraged to raise awareness among the public as well as manufacturers. KPDN is currently improving its marketing strategies and increasing the use of local products including collaborating with major supermarkets, convenience stores and retail outlets at petrol stations. To date, said Rohaizi, the ministry has entered strategic partnership with 16 leading local retailers such as Lotus’s Malaysia, Mydin, KK Supermart, Petronas Mesra for the KBBM. At the same time, the ministry has also established cooperation with online marketplace such as Shopee, Lazada and PG Mall to help revive the domestic economy and the people’s acceptance of Malaysian goods. “We have taken our marketing strategies for local products and services to the next level with focus on premium places as consumers would have more confidence in products that are marketed at such locations. Prior to this, it was difficult for local products to penetrate premium supermarkets due to the stigma attached to local products. “However, we can’t blame them (supermarket owners) as several aspects have to be weighed in among others, whether the local products in terms of quality are suitable for placements there; and can the local items be assured of their availability at the point of sale on a continuous basis,” he added. Under a two-pronged strategy, marketing of local products at premium supermarkets is poised to improve product visibility given that major retailers such as AEON and Lulu serve as the gateway to the global market through their retail network which has its footprints in various countries. In fact, many Malaysian brands have carved a niche for themselves and making their presence known globally with inroads in countries Rohaizi (left) looks at local products during an interview at his office in Putrajaya. – BERNAMAPIC BupMa

COMMUNITY COMMUNITY 17 TUESDAY | DEC 19, 2023 ttle, says KPDN hieved yet Initiative to boost road policing leadership Sixty enforcement officers participated in the Road Policing Leadership workshop. KUALA LUMPUR: The Police Traffic Investigation and Enforcement Department (JSPT) and Road Transport Department (JPJ) Enforcement Division, in collaboration with the Global Road Safety Partnership (GRSP), have completed the first road safety enforcement training on Road Policing Leadership. Supported by the Bloomberg Philanthropies Initiative for Global Road Safety (BIGRS), the two-day training took place on Nov 28 and 29, bringing together 60 enforcement officers from JSPT Bukit Aman, JSPT Kuala Lumpur and JPJ. The Road Policing Leadership Workshop, conducted by GRSP in Kuala Lumpur, focused on sharing technical knowledge about “Safe Systems” for road safety, the scientific evidence behind effective road safety policies, and technical knowledge on efficient road policing and enforcement strategies. The training was led by Russ Nyman, GRSP senior road policing adviser, and Brett Harman, GRSP Asia Pacific manager. The workshop covered a spectrum of topics, encompassing Leadership in a Road Safety Context, Legitimacy in Policing, “Safe System” Approach to Road Safety, and Deterrence Theory, among others. In particular, the workshop emphasised the primary risk factor of speeding and offered effective strategies to mitigate this critical issue. “This was an excellent event, the first of its kind in Kuala Lumpur, well attended by enforcement agencies working in Kuala Lumpur and Malaysia,” Nyman said. “It fostered good working relations that can be further developed in the operational environment. As the programme continues, all partner agencies are united in working towards the shared goal of reducing deaths and serious injuries from road crashes. Thank you to all who attended and contributed to the workshops.” Kuala Lumpur is one of the 27 global cities and two states participating in the third phase of the Bloomberg Philanthropies Initiative for Global Road Safety (BIGRS) 2020-2025. Dewan Bandaraya Kuala Lumpur (DBKL), supported by the Malaysian Institute of Road Safety Research (Miros) under this initiative, said it is committed to reducing road crashes and fatalities through improved enforcement, enhanced data collection, effective communication and the design of safer streets for all. GRSP is one of the pivotal partners under BIGRS, comprising professionals with expertise in various facets of road safety, including road policing, education and training, research, and advocacy. Their mission is to support civil society in advocating stronger road safety laws and their effective implementation while enhancing the capacity of police and enforcement agencies. “We will share this valuable knowledge with other officers, and should there be a series of such trainings, PDRM and JSPT will continue to collaborate closely with GRSP,” said DSP Mohd Nadzir Othman, a lecturer in Crisis and Disaster Management Science at the Royal Malaysia Police College Kuala Lumpur. JSPT and JPJ extend their appreciation to all workshop participants, facilitators, and the invaluable contributions of GRSP. The acquired knowledge and enhanced skills from this programme promises to make a profound impact on road safety in our country, said Mohd Zamri Samion, who is the chief assistant director in the Policy Unit of the Enforcement Division at JPJ. “I would like to express gratitude to JSPT by joining this training together, which can increase collaboration between our two agencies involved in road enforcement,” he added. The initiative is in line with Malaysia’s commitment to achieve a minimum 50% reduction in road traffic deaths and injuries by 2030. especially in the Middle East through such collaboration. As such, the ministry says it is looking at the situation from all angles, especially in terms of product development and quality improvement. Towards this end, KPDN strives to assist local manufacturers in improving the quality of their products and services based on certain standards through consultancy, continuous training and business matching with key retailers in the country. Besides physical marketing, emphasis is also given on the importance for manufacturers to tap the digital ecosystem and e-commerce infrastructure by adapting their products to reflect lifestyle changes and current trends. As such, Rohaizi opines that ecommerce transactions on the social media platform TikTok Shop in Malaysia is not a “threat” but the best opportunity for local entrepreneurs to market their products and services widely and more effectively. According to media reports, neighbouring Indonesia has banned TikTok Shop in the country as it is seen as a threat to local traders while Malaysia has yet to make a decision on the matter. Malaysia is reported to be still studying the possibility of regulating TikTok and its e-commerce features. “The purchasing behaviour of Malaysian consumers especially the younger generation has shifted in favour of online retailers on social media such as TikTok, and as such KPDN is of the view that our local manufacturers should take the opportunity to maximise the promotion of their products,” he added. Given the latest trends, the ministry has also injected a new lease of life into KBBM by empowering the campaign through the Malaysian Goods Carnival (KBM) 2023 to directly inculcate patriotism among Malaysians towards local brands. This includes organising five series of KBM mini tour at premium supermarkets across the nation covering north, south, east coast zones as well as Sabah and Sarawak, drawing participation from 18 to 22 local entrepreneurs to ensure these products are accessible to the people. The mini carnival’s grand finale will be held at IOI Grand Exhibition & Convention Centre, IOI City Mall, Putrajaya on Dec 13. More than 100 exhibitors will participate in the five-day mega event through various clusters nationwide. Themed the exclusivity of Malaysian products, the carnival, which includes exhibitions and sales promotion, also serves as the best platform for local entrepreneurs to boost their sales to a wider market through the business matching segment. But the question arises, will the carnival be able to achieve its objective given the people’s purchasing trend has been declining post Covid-19? “Without a doubt, consumers’ purchasing trend post Covid-19 has been declining due to several factors such as the rising cost of living and the economic slowdown, which forced many Malaysians to start saving for their everyday survival. “The overall sales value generated from KBBM last year recorded a slight drop to RM2.7 billion compared with RM3.2 billion in 2021,” he said, adding that the decline was due to the lower allocation received while several large corporations could not participate in last year’s event. Despite the lower sales, the total value of stock-keeping units (SKUs) in 2022 grew 67% to 3,871,128 from1.07 million in 2021. The sales performance shows that while more new products have entered the market, consumers’ purchasing power is still at a low ebb due to the global financial crisis. To address the issue, the ministry has embarked on more programmes, including holding KBM carnivals nationwide to create awareness of quality Malaysian goods as well as to encourage Malaysians to shift their preference by buying local as substitute for imported items. “The government’s move in empowering the KBBM through various strategic initiatives, such as the KBM carnival tour, is aimed at mitigating the challenges and pressures of economic globalisation particularly to boost and stimulate the domestic economy through increasing the purchase and use of local products or services. “For this year, we have visited five zones across the country through our mini tour series before the grand KBM finale this month. It is hoped that the implementation of KBBM strategic initiatives would be able to boost the people’s purchasing power as well as to attract public interest in local products,” he added. Besides the KBM tour, other strategic initiatives which have and will be undertaken include themed sales based on special segments. For this year, the segments selected are fashion and handicraft to provide a platform for local industries that are less exposed to promote their products through KBBM. The ministry has also established a strategic collaboration with animation companies through the development of an animation slot to inculcate the spirit of patriotism among the younger generation. “On behalf of KPDN, I would like to call on Malaysians as well as those abroad to support the campaign themed Jom Sokong dan Beli (Let’s Support and Buy) by buying Malaysian products which are of quality and are on par with foreign goods. “We should embed in our minds (the need) to embrace Malaysianmade products. “Show your love and support for Malaysian products. If we don’t do it, who else?” Seated are Harman and Nyman (third and fourth from left). Standing behind them are Mohd Zamri and Mohd Nadzir (sixth and eighth from left). siness operator Zarina Zainudin shows her roducts at the pre-launch event of the Buy alaysia Goods Campaign 2023 at Sri Pentas, Bandar Utama recently. – BERNAMAPIC

BIZ & FINANCE BIZ & FINANCE TUESDAY | DEC 19, 2023 18 Malaysia on Chinese chip firms’ radar SINGAPORE: A growing number of Chinese semiconductor design companies are tapping Malaysian firms to assemble a portion of their high-end chips, keen to hedge risks in case the US expands sanctions on China’s chip industry, sources said. The companies are asking Malaysian chip packaging firms to assemble a type of chip known as graphics processing units (GPU), according to three people with knowledge of the discussions. oSemiconductor designers looking abroad for assembly of high-end products The requests only encompass assembly – which does not contravene any US restrictions – and not fabrication of the chip wafers, they said. Some contracts have already been agreed, two of the people added. The people declined to disclose the names of the companies involved or to be identified, citing confidentiality agreements. Seeking to limit China’s access to high-end GPU that could fuel artificial intelligence (AI) breakthroughs or power supercomputers and military applications, Washington has increasingly placed restrictions on their sales as well as on sophisticated chip-making equipment. As those sanctions bite and an AI boom fuels demand, smaller Chinese semiconductor design firms are struggling to secure sufficient advanced packaging services at home, analysts have said. Some of the Chinese companies are interested in advanced chip packaging services, two people said. Advanced packaging of chips is not subject to US export restrictions, but it is an area that can require sophisticated technology which the firms worry might one day be targeted for curbs on exports to China, the two people added. Malaysia, a major hub in the semiconductor supply chain, is seen as well placed to grab further business as Chinese chip firms diversify outside of China for assembling needs. Unisem, majority owned by China’s Huatian Technology, and other Malaysian chip packaging companies have seen increased business and inquiries from Chinese clients, said one source who was briefed on the matter. Unisem chairman John Chia declined to comment on the company’s clients but said: “Due to trade sanctions and supply chain issues, many Chinese chip design houses have come to Malaysia to establish additional sources of supply outside of China to support their business in and out of China.” Chinese chip design firms also see Malaysia as a good option because the country is perceived as being on good terms with China, is affordable, with an experienced workforce and sophisticated equipment, two of the sources said. The US Department of Commerce did not respond to requests for comment. Other big chip packaging firms in the country include Malaysian Pacific Industries and Inari Amertron. They did not respond to Reuters requests for comment. Chinese companies are also interested in having their chips assembled outside China as that could also make it easier to sell their products in non-Chinese markets, said one source, an investor in two Chinese chip startups. Malaysia currently accounts for 13% of the global market for semiconductor packaging, assembly, and testing and is aiming to boost that to 15% by 2030. Chinese chip firms that have announced plans to expand in Malaysia include Xfusion, a former Huawei unit, which said in September it would partner with Malaysia’s NationGate to manufacture GPU servers – servers designed for data centres and which are used in AI and high-performance computing. – Reuters UK to implement carbon levy on imported goods by 2027 LONDON: Britain said yesterday it would implement a new import carbon pricing mechanism by 2027, with goods imported from countries with a lower or no carbon price having to pay a levy as part of decarbonisation efforts. The government said the carbon border adjustment mechanism (CBAM) would apply to carbon intensive products in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors. The charge applied will depend on the amount of carbon emitted in the production of the imported good, and the gap between the carbon price applied in the country of origin – if any – and the carbon price faced by UK producers. “This levy will make sure carbon intensive products from overseas – such as steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions,” finance minister Jeremy Hunt said. “This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero.” Britain said it would help reduce the risk of “carbon leakage”, avoiding emissions being displaced to other countries because they have a lower or no carbon price. The CBAM will work alongside the UK Emissions Trading Scheme, it added. In September, the European Union (EU) launched the first phase of a system to impose CO2 emissions tariffs on imported steel, cement and other goods, the world’s first. It will not begin collecting any CO2 emission charges at the border until 2026. That planned tariff has caused disquiet among trading partners and at a recent forum, China’s top climate envoy Xie Zhenhua urged countries not to resort to unilateral measures such as the EU levy. – Reuters Nippon Steel to acquire US Steel for US$14.1 billion TOKYO: Japan's Nippon Steel has agreed to buy US Steel Corp for US$14.1 billion (RM66 billion), the companies announced yesterday, months after the steelmaker rejected an offer from its main US rival. The leading Japanese steelmaker will acquire US Steel in an all-cash deal at US$55 per share, a 40% premium above its closing price on Dec 15, representing an equity value of about US$14.1 billion, the companies said in a statement. Nippon will also assume the US firm’s debt, taking the total deal to US$14.9 billion. US Steel launched a strategic review in August after receiving several unsolicited offers for a partial or total takeover. It rejected an offer from its main US competitor Cleveland-Cliffs, which valued the merger at around US$10 billion. The steelworkers' union USW had indicated it supported the deal put forward by ClevelandCliffs. The acquisition will significantly expand Nippon's current production in the United States. – AFP B R I E F SINDONESIA STOCK EXCHANGE SUSPENDS TRADING OF WIJAYA KARYA’S SECURITIES JAKARTA: The Indonesia Stock Exchange (IDX) yesterday suspended trading of securities of state-owned construction firm Wijaya Karya after the company postponed a debt principal payment, according to IDX’s statement.The debt is an Islamic bond, known as sukuk, that the company issued in 2020, IDX said, adding that “the postponement indicates that there are problems with the continuity of the company’s business”. The suspension is effective immediately, IDX said. – Reuters IBM TO BUY SOFTWARE AG’S ENTERPRISE TECH UNIT FOR €2.13B NEW YORK: IBM said yesterday that it would buy Software AG’s enterprise technology platforms for €2.13 billion (RM10.8 billion) to bolster its artificial intelligence and hybrid cloud offerings. IBM will acquire Software AG’s StreamSets and webMethods platforms with available cash on hand, it said. The platforms provide application integration, application programming interface (API) management, and data integration among other uses. Software AG is majority owned by private equity firm Silver Lake. – Reuters China economic conditions ‘to improve in 2024’ BEIJING: China’s economy is expected to see more favourable conditions and more opportunities than challenges in 2024, state media said citing officials of the Chinese Communist Party’s finance and economy office. Macroeconomic policies will continue to provide support for economic recovery, the official Xinhua said in a detailed readout of the annual Central Economic Work Conference held Dec 11 and 12, during which top leaders set economic targets for the following year. “China‘s prices are low, central government debt levels are not high, and conditions are in place to strengthen implementation of monetary and fiscal policies,” Xinhua said, quoting the office of the Central Financial and Economic Affairs Commission late Sunday. Still, blockages persist in the domestic economic cycle as demand, consumption and enterprise investment remain weak. Next year, the party officials said, China will look to shift from a post-pandemic recovery to sustained consumption growth. The world’s second-largest economy will also cultivate new consumption growth areas such as smart homes, recreation and tourism and sports events. The effects of this year’s treasury bond issuance, cuts in interest rates, tax and fee cuts and other policies will continue into next year, the report said. China would also continue to monitor its battered real estate market and meet the reasonable financing needs of real estate companies. “With the concerted efforts of all parties, the policy objectives of real estate risk prevention and market stabilisation can be fully achieved,” the Xinhua report said. In another development, China’s finance A scene of Nanjing Pedestrian Road, a main shopping area in Shanghai. Next year, China will look to shift from a post-pandemic recovery to sustained consumption growth, officials say. – REUTERSPIC ministry has allocated a first batch of 237.9 billion yuan (RM156.3 billion) of funds from sovereign bonds as of yesterday, in an effort to support the renovation of infrastructure in areas hit by natural disasters, state media CCTV reported. The funds were part of a plan unveiled in October when China said it would issue 1 trillion yuan of sovereign bonds to enhance disaster-prevention infrastructure, the report said. The plan to help rebuild areas hit by this year’s floods and improve urban infrastructure to cope with future disasters has widened China’s 2023 fiscal deficit target to 3.8% of gross domestic product from the original 3%. The first batch of funds will support more than 2,900 projects, CCTV reported, including 107.5 billion yuan to help with rebuilding and disaster prevention and mitigation. Another 125.4 billion yuan will be used to subsidise high-standard farmland in the northeastern region and the Beijing-TianjinHebei region, and 5 billion yuan will go to major natural disaster prevention and control system projects, CCTV added. – Reuters

LYFE LYFE TUESDAY | DEC 19, 2023 22 @thesundaily FOLLOW ON Malaysian Paper INSTAGRAM Festive road trip guide NOTHING beats the thrill of setting out on a road trip during the Christmas break, with the festive melodies of Mariah Carey’s All I Want for Christmas is You filling the air and the joyous sounds of singing along with your dear ones accompanying the journey. Although Malaysia does not have a winter season, you can still visit places that evoke a wintery and snowy atmosphere. To enhance your holiday spirit, we are thrilled to guide you through some of the most enchanting Christmas destinations in Malaysia. So, what are you waiting for? Pack your bags, fuel up your car, and join us on this exploration of the top destinations in Malaysia that promise a magical Christmas holiday season. I-City in Shah Alam offers a unique Christmas experience that brings winter to Malaysia. –ICITY.COM oJourneying through Malaysia’s Christmas magic █ BY HAZIQUE ZAIRILL Legoland Malaysia ensures a Christmas celebration filled with joy and enchantment for all. – LEGOLAND.COM Visitors to Melaka must see the Portuguese settlement to experience Malaysia’s festive spirit. –FACEBOOK/@MYMELAKA Christmas bazaars are great places to celebrate and have fun. –FACEBOOK/@ABWM I-City immersive winterland Take a drive to Shah Alam to experience I-City’s Christmas magic. The snow walk at I-City is the highlight of this experience, allowing you to enjoy snow in Malaysia. Renowned as a technology park, I-City transforms into a mesmerising display of millions of brilliant LED lights once the night descends. Then, visiting I-Snowalk City’s attraction not only represents one of the best ways to celebrate Christmas but also offers a remarkable taste of genuine winter and Christmas weather without the hassle of dealing with actual snow. It has snow up to 100ml deep and has temperatures that are below 5°C. Moreover, do not miss the chance to explore the recently opened immersive winterland. This enchanting experience allows you and your loved ones to fully immerse yourselves in this wondrous wintry setting. Shah Alam’s I-City promises a Christmas celebration like no other, bringing the magic of winter to the heart of Malaysia. Brick-tacular holidays Legoland When it comes to Christmas, Legoland Malaysia takes on the role of Santa Claus, providing a festive extravaganza that includes a special treat for visitors. This holiday season, Legoland becomes a haven for families, providing many activities and making it one of the premier family-friendly destinations in Malaysia. Experience a host of exciting seasonal festivities and witness the park adorned with a sprinkle of Lego magic. Highlights include the giant Lego Duplo Tree lighting up during Santa’s Holiday Spectacular show, delightful holiday performances, opportunities to meet beloved Lego Holidays characters and the chance to explore the wonders of the deep at Sea Life Malaysia. Running until Dec 31, Legoland Malaysia is delighted to present an array of holiday-themed activities for you and your loved ones to savour. Portuguese settlement in Malacca The Portuguese Settlement emerges as one of the most captivating Christmas destinations, particularly when you find yourself in Malacca, renowned for its breathtaking beauty. This celebration has evolved into one of the most highly anticipated events of the year for the residents of Malacca, a Unesco World Heritage Site. With Christmas traditions deeply rooted in the history of the settlement, the festive spirit has only grown stronger over the years. It has also gained popularity among tourists seeking to celebrate Christmas the traditional Malaysian way. The festive activities range from cultural events and performances to culinary delights and community interactions, ensuring a diverse and engaging experience for visitors. It is a celebration that not only honours tradition but also welcomes all to partake in the joyous spirit of Christmas in a setting that beautifully reflects the cultural tapestry of Malaysia. ABWM Christmas bazaar The festive season in Kuala Lumpur is set to be even more exciting with the upcoming Christmas bazaar organised by the Association for British Women in Malaysia (ABWM). This lively event promises a diverse range of attractions, including various food vendors, charity booths, a special appearance by Santa, a dedicated children’s section featuring a bouncy castle and face painting, melodious carol singers, enticing raffles and a convenient cash bar, among other engaging activities. As we wrap up our journey through the enchanting Christmas destinations in Malaysia, we hope this guide has inspired you to embark on a magical road trip filled with festive joy. From the winter wonderland at I-City to the brick-tacular celebrations at Legoland and the rich cultural festivities in Malacca’s Portuguese Settlement, Malaysia offers a diverse tapestry of experiences to make your Christmas holiday truly special. And for those in Kuala Lumpur, do not miss the chance to immerse yourself in the festive spirit at the ABWM Christmas bazaar, where a myriad of attractions await you. As we bid farewell to this guide, may your holiday season be filled with warmth, laughter and the joy of exploration. Safe travels and a Merry Christmas.