CEOMorningBrief FRIDAY, AUGUST 11, 2023 ISSUE 618/2023 theedgemalaysia.com FED SEEN PAUSING AFTER TAME INFLATION DATA, BUT MISSION NOT OVER p16 HOME: Energy Commission: 1,899 GW of green energy to be allocated under GET programme on Aug 11 p2 MIER: Consumer sentiment and business conditions remain on downtrend in 2Q2023 p4 Pentamaster 2Q earnings rise on stronger revenue and better product mix p6 IHH Healthcare’s unit to acquire Bedrock Healthcare for RM245 mil p7 WORLD: Soaring rice prices stretch budgets for billions in Asia, Africa p18 Malaysia’s 2Q GDP growth seen softening on external headwinds Report on Page 3. ZAHID IZZANI/THEEDGE
FRIDAY AUGUST 11, 2023 2 THEEDGE CEO MORNING 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] Energy Commission: 1,899 GW of green energy to be allocated under GET programme on Aug 11 Malaysia blocks live cattle imports from Australia after skin disease scare KUALA LUMPUR (Aug 10): A total 1,899 GW of green energy is available for subscription when the green electricity tariff (GET) programme reopens on Friday (Aug 11), said the Energy Commission. The new quota is applicable for a fivemonth contract period from Aug 1 to Dec 31, the regulator said in a statement on Thursday. It urged interested applicants to subscribe early within the application window of 11am to 5pm on Friday, by logging into Tenaga Nasional Bhd’s myTNB portal at www.myTNB.com.my. The GET programme enables companies or industries to immediately achieve SYDNEY (Aug 10): Malaysia has temporarily suspended live cattle and buffalo imports from Australia, the Australian government said, days after Indonesia paused some imports after lumpy skin disease (LSD) was detected in a small number of cattle after arrival. Australia was urgently engaging with its Malaysian counterparts to lift the curbs while confirming the country remained free from the disease, Australia’s chief veterinary officer, Mark Schipp, said on Wednesday (Aug 9). “We understand this decision was based on Indonesia’s advice that they will not accept cattle from four specific export establishments following detection of LSD in exported Australian cattle after they had arrived and spent time in Indonesia,” Schipp said in a statement. Indonesia, the largest market for Australian live cattle exports, last week placed some restrictions even as officials sought to allay fears by conducting rapid diagnostic testing. Schipp said his department was working to finalise the investigation into the health status of the impacted cattle. Australia is free of LSD and cattle exports to Indonesia continue from other facilities. LSD, which causes blisters and reduces milk production, is a highly infectious viral disease affecting cattle and buffalo that is transmitted by insect bites. It poses no risk to humans. Australia did not specify the number of shipments that will be impacted by Malaysia’s decision. HOME BY SYAFIQAH SALIM theedgemalaysia.com BY RENJU JOSE Reuters their 100% renewable power goal with the internationally-acclaimed Malaysia Renewable Energy Certificate (mREC). “The mRECs certify that every kWh of green energy purchased by the GET subscriber is uniquely identified to the particular renewable energy generation source, which in turn is connected to the national grid infrastructure and thus dispatchable to the GET subscriber,” said the Energy Commission. In addition, the GET programme provides the successful GET subscriber with full exemption from the imbalance cost pass through (ICPT) charges on their green energy utilised in their electricity bill. “The Energy Commission extends our appreciation to all those committed to a greener and sustainable future,” the statutory body added. First implemented in 2022, the GET programme is a strategic initiative by the government to provide green electricity generated from renewable sources to customers of TNB who intend to reduce their carbon footprint. Last month, Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad announced that the tariff for the GET programme has been raised to 21.8 sen/kWh from 3.7 sen /kWh effective Aug 1, in line with regional green electricity retail price benchmarks.
FRIDAY AUGUST 11, 2023 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 10): Economists forecast that Malaysia’s gross domestic product (GDP) growth for the second quarter of the year (2Q2023) will be softer owing to weakening external demand, ahead of the release of the actual GDP numbers on Aug 18. In a macro note on Thursday (Aug 10), UOB Global Economics & Markets Research projected 2Q2023 GDP growth to settle at 3.2% year-on-year (y-o-y) from 5.6% in the first quarter of 2023, given that April to June economic indicators point to a further slowdown in the country’s real GDP growth. The latest GDP growth projection is lower than its initial estimate of 4.1% and Bloomberg’s median estimate of 3.6%. It is probably the weakest since 3Q2021 and below the pre-pandemic quarterly growth range of 3.6% to 5.3% in 2018 to 2019, said UOB. It added that the smaller GDP growth projection mainly reflected the negative effects brought about by manufacturing, mining and quarrying, several services sub-sectors like finance and insurance, food and beverages, and wholesale and retail trade. “This comes on the back of subdued global demand, tighter global financial and monetary conditions, plants shutdown and elevated costs of living amid higher base effects,” it added. UOB added that domestic demand will still be the main component supporting the overall economy in 2Q2023, noting that an expected increase in tourist arrivals, BY REYANNA NG & SURIN MURUGIAH theedgemalaysia.com Malaysia’s 2Q GDP growth seen softening on external headwinds Read also: DOSM: Unemployment rate down to 3.4% in June 2023 especially from China, easing inventory correction, an expected upturn in the tech cycle, and further realisation of approved investment projects could be the silver linings this second quarter. Hence, UOB chose to maintain its fullyear GDP growth projection at 4.4% with Bank Negara Malaysia’s estimate ranging from 4% to 5%, compared to 2022’s 8.7%, though the seasonally adjusted GDP growth is expected to edge higher to 1.5% quarter-on-quarter (q-o-q) in 2Q2023. The investment unit added that Malaysia is seen as “underperforming some of its regional peers” such as Indonesia (+5.2%) and Vietnam (+4.1%). In a similar vein, CGS-CIMB in its note on Wednesday also estimated 2Q2023 GDP growth to expand by 3.3% y-o-y, predominantly led by the services and construction sectors, while manufacturing and agriculture decelerated. “In our view, despite the reduction in disposable income owing to the central Research houses’ 2Q GDP growth forecast Research house Growth forecast (%) CGS-CIMB 3.3 UOB 3.2 Maybank 3.0 Hong Leong 2.9 Source: Research reports bank’s tighter policy rate, the government’s ongoing efforts in price intervention and maintaining subsidies for key items have helped to cushion the cost burdens faced by the average Malaysian consumer,” the research house extended, adding that the risk of price pressures is somewhat cushioned by a healthy employment rate and further government hand-outs. Additionally, the research unit expects the likely softer GDP performance in 2Q2023 to wane further into 3Q2023 due to high base effects. However, even after excluding the base effects, the underlying economic momentum will likely be much weaker in 3Q2023 as demand, both externally and domestically, dissipates. CGS-CIMB also said that it predicates the overnight policy rate (OPR) to be maintained at 3% by the end of 2023 and attributed this to easing inflationary pressures and the likelihood of a global economic slowdown becoming more pronounced, trickling into export numbers. Meanwhile, Maybank Investment Bank Bhd said that it estimates a 2Q2023 GDP growth of 3%, alongside a current full-year real GDP growth forecast remaining at 4.5% in its research note on Wednesday. It did not provide comments on the months moving forward. Hong Leong Investment Bank (HLIB) Research also expects Malaysia’s 2Q2023 GDP to record a slower growth of 2.9% y-o-y. In its Thursday note, the research house said growth is expected to be weighed down by moderation and contraction across all sectors. It said that while private consumption is expected to moderate, it is anticipated to remain the key driver of demand growth. “We see downside risk to our 2023 GDP forecast, pending the release of actual 2Q2023 GDP print on Aug 18, 2023,” it said. HLIB said Malaysia’s pace of economic expansion is expected to continue moderating for the rest of the year, taking into account the absence of base effect and pent-up demand. “The outlook for the global economy has also remained bleak, dampened by tighter credit conditions and sluggish economic data from China,” it said.
friday A UGUST 11, 2023 4 The E dge C E O m o rning brief home KUALA LUMPUR (Aug 10): The quarterly consumer sentiments index (CSI) tracked by the Malaysian Institute of Economic Research (MIER) continued its downtrend in the second quarter this year (2Q2023), decreasing 8.4 points quarter on quarter (q-o-q) to 90.8 points, below the threshold of 100 points which indicates optimism. On a year-on-year (y-o-y) basis, however, the CSI rose by 4.8 points. In its report, the think tank said consumers displayed greater pessimism towards this year’s economic environment, reflected by their negative outlook on future finances, incomes, jobs and inflation levels. The negative trend is similarly observed in the employment index. It deMIER: Consumer sentiment and business conditions remain on downtrend in 2Q2023 by Justin Lim theedgemalaysia.com clined 7.4 points q-o-q to 102.4 points from 1Q2023 and 7.8 points y-o-y from 2Q2022. According to MIER, as respondents exhibited pessimism about future jobs, incomes and inflation, their spending plans also appear to be lower. As the global economy has not shown signs of recovering soon, MIER is calling for the government to consider measures that would instill greater confidence in jobs and income growth among Malaysians. A total of 1,014 households were interviewed for the MIER’s CSI survey. Business conditions index at two-year low Similarly, the business conditions index (BCI) for 2Q2023 indicated that the private sector is pessimistic over business conditions in the near term. This was reflected in negative indicators in sales, employment and inventory levels, among others. “This may indicate that firms feel the ongoing global uncertainties will continue to negatively impact their business in the near term,” said MIER. The quarterly index showed a decrease of 13 points q-o-q from 1Q2023 to 82.4 points — the lowest since 2Q2020. On a yearly basis, the BCI dropped 13.8 points from 96.2 points in 2Q2022. Meanwhile, companies appear to harbour pessimism regarding business conditions. The BCI expected index for 2Q2023 decreased to 94.3 points from 115.8 points in the previous quarter. MIER added that the ongoing global uncertainties coupled with elevated inflation and supply chain disruption has placed Malaysia in a vulnerable position. “It is important that Malaysia, as a small and open trading economy, figure out solutions to address these concerns.” The survey for MIER’s BCI covers a sample of over 350 manufacturing businesses incorporated locally and foreign manufacturing firms operating in Malaysia, MIER’s website shows. Read also: Capital flows into Malaysia expected to remain volatile, says UOB bloomberg Source: MIER, DOSM Business Conditions Index (BCI) and GDP 82.4 0 20 40 60 80 100 120 140 -20 -15 -10 -5 0 5 10 15 20 2012:1Q 2Q 3Q 4Q 2013:1Q 2Q 3Q 4Q 2014:1Q 2Q 3Q 4Q 2015:1Q 2Q 3Q 4Q 2016:1Q 2Q 3Q 4Q 2017:1Q 2Q 3Q 4Q 2018:1Q 2Q 3Q 4Q 2019:1Q 2Q 3Q 4Q 2020:1Q 2Q 3Q 4Q 2021:1Q 2Q 3Q 4Q 2022:1Q 2Q 3Q 4Q 2023:1Q 2Q GDP Threshold BCI Source: MIER Consumer Sentiments Index 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 2013:1Q 3 2014:1Q 3 2015:1Q 3 2016:1Q 3 2017:1Q 3 2018:1Q 3 2019:1Q 3 2020:1Q 3 2021:1Q 3 2022:1Q 3 2023:1Q Employment Index: 102.4 Consumer Sentiments Index (CSI): 90.8
FRIDAY AUGUST 11, 2023 5 THEEDGE CEO MORNING BRIEF
FRIDAY AUGUST 11, 2023 6 THEEDGE CEO MORNING BRIEF HOME SINGAPORE (Aug 10): Thanks to a recovery in the hospitality industry, Genting Singapore has reported earnings of S$276.7 million (RM940.17 million) for 1HFY2023, up 227.6% y-o-y, on the back of 63% jump in revenue to S$1.08 billion. Gaming revenue accounted for three-quarters of the total, or S$747 million, versus S$475.2 million in the year-earlier 1HFY2022. Non-gaming revenue came in at S$327 million, up from S$176.8 million. Genting Singapore plans to pay an interim dividend of 1.5 Singapore cents per share, an improvement over the one cent payout for 1HFY2022. Separately, the company announced the appointment of Lee Shi Ruh as the president of Resorts World Sentosa with effect from Sept 1, reporting to Tan Hee Teck, RWS’s chairman and CEO. She joined the company in 2010 and is now the chief people officer. Genting Singapore shares closed at 92 Singapore cents, unchanged for the day and down 3.16% year to date. Genting Singapore 1HFY2023 earnings triples to S$276.7 mil KUALA LUMPUR (Aug 10): Pentamaster Corporation Bhd’s net profit rose 23.2% to RM23.65 million in the second quarter ended June 30,2023 (2QFY2023) from RM19.20 million a year ago, on the back of higher revenue and better product mix. Quarterly revenue increased 16.9% to RM176.88 million from RM151.34 million in 2QFY2022, mainly contributed by the automated test equipment (ATE) and factory automation solutions (FAS) segments, the the semiconductor group said in a bourse filing on Thursday (Aug 10). Revenue from the ATE segment went up 34.8% to RM148.6 million mainly due to its broad product solutions in the automotive industry, with the automotive segment contributing 71% to the ATE segment. Specifically, the group’s wafer level burnin tester for silicon carbide and its back-end assembly and test solutions for the hybrid pack power modules continued to fuel growth KUALA LUMPUR (Aug 10): Sentral REIT’s net property income for the second quarter ended June 30, 2023 (2QFY2023) grew 4.55% to RM29.21 million from RM27.94 million a year earlier. In a filing to Bursa Malaysia on Thursday (Aug 10), the group reported that property operating expenses for the second quarter of 2023 (2Q2023) were RM9 million, marking a 4.8% increase from 2Q2022, due to higher utilities expenses for certain properties within the portfolio The group also noted that despite a higher net property income contribution, the quarter experienced lower realised income primarily due to elevated finance costs and utilities expenses. Quarterly revenue was up by 4.59% to RM38.19 million from RM36.51 million a Pentamaster 2Q earnings rise on stronger revenue and better product mix Sentral REIT’s 2Q net property income up 4.55% BY PRIYATHARISINY VASU theedgemalaysia.com BY PRIYATHARISINY VASU theedgemalaysia.com theedgesingapore.com year earlier, driven by higher revenue generated from Menara Shell and Platinum Sentral, partially offset by the decrease in revenue from Wisma Technip and QB2. The real estate investment trust (REIT) declared an interim income distribution of 3.19 sen per unit, which will be paid on Sept 18, translating into a yield of 7.83% based on the group’s closing price of 81.5 sen on June 30, 2023. For the first half of 2023, the company recorded net property income of RM58.49 million against RM58.45 million a year prior, while revenue for the same period stood at RM75.67 million from RM75.27 million. Approximately 74,000 sq ft or 98% of the group’s committed net lettable area (NLA) due in 1H2023 were successfully renewed. Correspondingly, Sentral REIT also recorded a portfolio occupancy rate of 77% in 2Q2023, similar to the portfolio occupancy recorded in the previous quarter. On prospects, Sentral REIT said the Klang Valley office and retail markets are expected to remain challenging. “Sentral will continue to focus on asset management and leasing strategies that are centred on cost optimisation and tenant retention in the current operating environment,” it said. Sentral REIT said efforts will be intensified to market the available office spaces under the portfolio with a focus on bringing in new tenants from the IT, e-commerce, serviced office and shared services sectors. Sentral REIT units traded unchanged at 84.5 sen, valuing it at some RM905 million. for the group’s automotive segment as globally, governments have been implementing strong mandates and policy support for the electric and renewable energy segments. The FAS segment registered a 30% drop to RM30.2 million from RM43.2 million in 2Q2022 due to a longer production cycle and project timeline which normally ranges more than six months. For the first half of the year, Pentamaster’s net profit rose to RM44.93 million from RM39.60 million in the same period of FY2022, while revenue increased to RM342.18 million from RM297.36 million. On prospects, Pentamaster said the group remains forward-looking with optimism in sustaining a steady momentum of business growth in the second half of FY2023 with its encouraging order book strength. “Within our order book, both the automotive and medical segment continue to provide a bright spot in the group’s order flow,” the group said, adding the automotive segment will continue to take pole position as the leading revenue contributor for the coming years. Pentamaster’s shares closed up 13 sen or 2.41% at RM5.53, valuing the group at RM3.94 billion.
FRIDAY AUGUST 11, 2023 7 THEEDGE CEO MORNING BRIEF HOME MUMBAI (Aug 10): Demand for palm oil has been increasing as its discount to soyoil and sunoil has grown, driven by the recent price rise in rival oils due to production concerns in the US and supply disruptions from the Black Sea region, industry officials said. This surge in demand is expected to assist Indonesia and Malaysia in bringing down their palm oil inventories, simultaneously bolstering Malaysian palm oil futures. “Aggressive pricing has been aiding palm oil as buyers are shifting toward palm oil from other oils for near-month shipments,” said Sanjeev Asthana, chief executive officer at Patanjali Foods Ltd, India’s top palm oil buyer. India, the world’s biggest buyer of edible oils, imported 1.09 million metric tonnes of palm oil in July, nearly 60% more than June and the highest in seven months. India’s imports would remain robust during August and September as well, Asthana said. Crude palm oil is offered at US$910 (RM4,162) a tonne including cost, insurance and freight (CIF) to India for September shipments, compared with US$1,050 for crude soyoil and US$1,010 for crude sunflower oil, dealers said. Soyoil prices jumped in the last one Palm oil demand boosted as rival oil prices jump on supply woes KUALA LUMPUR (Aug 10): IHH Healthcare Bhd announced that it will acquire the entire equity interest in Bedrock Healthcare Sdn Bhd (BHSB) for a cash consideration of RM245 million. In a bourse filing on Thursday (Aug 10), IHH said its indirect wholly-owned subsidiary Pantai Holdings Sdn Bhd has entered into a share purchase agreement (SPA) with Saravita Holdings Sdn Bhd and nine individual founders for the entire equity interest in Bedrock Healthcare. BHSB, via its wholly-owned subsidiaries, owns the key asset Timberland Medical Centre (TMC) in Kuching, Sarawak and has earmarked vacant land in central Kuching for the construction of a new 200- bed tertiary hospital. The acquisition is expected to be completed by the first half of 2024, subject to regulatory approvals and satisfaction of conditions precedent in accordance with the SPA. Upon completion, BHSB and its subsidiaries will be consolidated as subsidiaries of IHH. “The acquisition and new development will strengthen IHH’s position as a leading provider of quality and comprehensive care across Malaysia. The two assets will complement our cluster stratIHH Healthcare’s unit to acquire Bedrock Healthcare for RM245mil egy for East Malaysia and bring the total IHH bed capacity in East Malaysia to almost 500 in the future,” IHH group chief strategy and business development officer Ashok Pandit said in a statement to Bursa Malaysia. IHH Healthcare Malaysia chief executive officer Jean-François Naa said that the proposed acquisition would allow IHH to strengthen its position in Sarawak “by scaling up Timberland’s operations via a new 200-bed tertiary hospital to be constructed in central Kuching, with a further investment of approximately RM400 million, to serve the local needs as well as the fast-growing medical tourism market from Indonesia”. TMC, which has been operating for almost 30 years, is a prominent and respected 82-bed private medical centre in Kuching with strong brand recognition across Borneo. The acquisition is not expected to have any effect on IHH’s issued share capital, shareholders, earnings, net assets or gearing for the financial year ending Dec 31, 2023. IHH shares closed up six sen or 1.01% at RM6 on Thursday, giving the group a market capitalisation of RM52.84 billion. BY ANIS HAZIM theedgemalaysia.com BY RAJENDRA JADHAV Reuters “Palm oil prices didn’t rise; instead, they came down due to rising stocks in the producing countries and become even more cheaper for buyers,” the dealer said. Price-sensitive Asian buyers traditionally rely on palm oil because of low costs and quick shipping times. Along with India, China, Bangladesh and Pakistan have also been raising palm oil purchases for August and September shipments, said a Mumbai-based trader. China’s July vegetable oil imports, which mainly consist palm oil, jumped 48% from a year ago to 778,000 tonnes. Palm oil’s discount to rival oils is likely to come down gradually as rising exports would bring down the inventories in both Malaysia and Indonesia, the trader said. Malaysia’s palm oil exports rose 15.55% to 1.35 million tonnes in July, according to the Malaysian Palm Oil Board. In the first ten days of August, exports of Malaysian palm oil products rose 17.5% to 383,795 tonnes, AmSpec Agri Malaysia said on Thursday (Aug 10). Read also: MHC Plantations reports 74% drop in profit amid lower prices of oil palm products BLOOMBERG month on production concerns in the US and lower supplies from top exporting Argentina, while sunflower oil became expensive after Russia withdrew from the Black Sea grains deal, said a New Delhi based dealer with a global trade house. The Black Sea region accounts for 60% of world sunflower oil output and 76% of exports. BLOOMBERG
FRIDAY AUGUST 11, 2023 8 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 10): Two property developers have proposed yet another round of private placement to fund their property projects. Axteria Group Bhd told Bursa Malaysia on Thursday (August 10) that it had proposed a private placement of up to 10% of its total number of issued share capital to raise RM11.3 million. It is worth noting that Axteria, formerly Acoustech Bhd, had embarked on three rounds of private placement in the past three years, owing to the difficulty it faced in the property sector, raising RM8.5 million in 2021 and 2022 respectively, as well as RM26.7 million in February this year. In the latest private placement exercise, the large bulk of the proceeds raised (RM9.2 million) will be used to fund the completion of its Asteria Melaka (Block C) construction and working capital. Some RM2 million is earmarked for working capital. The private placement exercise will entail the issuance of up to 71.68 million new shares, bringing the group’s enlarged share capital to 788.44 million shares. It may be implemented in tranches within six months from the date of approval of Bursa Securities. Another property developer NCT Alliance Bhd, formerly Grand-Flo Bhd, is undertaking a private placement exercise of about 10% of its share base to raise some RM54.42 million, based on an illustrative price of 37 sen, mainly to fund its property development of the Grand Ion Majestic and Ion Vivace projects. The company said almost all of it or RM53.9 million, will be allocated for investment opportunities to expand the group’s property development activities. Some RM50 million and RM3.9 million would be earmarked for its mixed development project Grand Ion Majestic in Pahang and Ion Vivace in Batu Kawan, Penang, respectively. In the past year, NCT had undertaken a private placement of 181 million new shares, which was completed on March 29, 2023, raising total proceeds of about RM58.3 million to fund the development of its mixed development project in Genting Highlands, Bentong, Pahang. As at March 31, NCT estimated that it will require approximately RM477.6 million for its property development activities up to till 2026. Axteria, NCT propose yet another private placement to fund their property development KUALA LUMPUR (Aug 10): EA Holdings Bhd has urged its shareholders not to attend and vote at an extraordinary general meeting (EGM) on Aug 22 called for by substantial shareholder Ng Cheng Shin. The ICT services provider said the notice of EGM issued by Ng on Aug 7 “is independent of the company” and against the terms of two interim injunction orders dated Aug 1 and Aug 2 obtained by Vinvest Capital Holdings Bhd in the High Court. The notice is treated by the company as defective and void, EA Holdings said in a bourse filing on Thursday (Aug 10). “Any intended or purported attempts to hold any EGM in the name of the company is in breach of the said ad interim injunction orders and any individual attempting such a step may be subject to contempt proceedings,” it added. Ng, who has claimed to hold at least a 10% equity interest in EA Holdings, has called for the EGM to remove six direcEA Holdings urges shareholders not to attend EGM called by substantial shareholder BY ANIS HAZIM theedgemalaysia.com BY REYANNA NG & SYAFIQAH SALIM theedgemalaysia.com tors and replace them with four new candidates. However, the notice of the EGM has not been filed with Bursa Malaysia as of Thursday. The six directors are Mohammad Sobri Saad, Basir Bachik, Datuk Azahar Rasul, Abdul Fattah Mohamed Yatim, Choo Seng Choon and Wong Wan Rou. Subsequently, Ng is seeking to appoint himself together with three other individuals, namely Chin Yew Thong, Adrian Foong Heng Nian and Teh Chee Chong as new directors of the company. EA Holdings was in the limelight recently after Vinvest Capital filed a lawsuit against EA Holdings and See Jovin, who is described as a stock market analyst, over the alleged loss of Vinvest’s 17.82% stake in EA Holdings. Vinvest is alleging that fraud was committed by EA Holdings and See. EA Holdings closed half a sen or 50% lower at half a sen on Thursday, with a market capitalisation of RM16.13 million. The stock has declined 50% year to date.
FRIDAY AUGUST 11, 2023 9 THEEDGE CEO MORNING BRIEF HOME PN17 firm Top Builders announces voluntary resignation of auditor KUALA LUMPUR (Aug 10): Practice Note 17 (PN17) company Top Builders Capital Bhd said on Thursday (Aug 10) that its external auditor, Kreston John & Gan, has resigned on a volunary basis. Kreston John & Gan’s term of office will end 21 days after the resignation notice date of Aug 9 in line with the Companies Act 2016, said the piling and engineering company in a bourse filing. Top Builders said it will announce its new auditor in due course once the appointment is finalised by the company. On Aug 3, the PN17 company said it has submitted an appeal to Bursa Securities over the rejection of its application for a further extension of time until Dec 29 to submit its regularisation plan and over the delisting of Top Builders. — by Justin Lim Southern Cable bags RM332 mil cable supply contract extension from TNB KUALA LUMPUR (Aug 10): Southern Cable Group Bhd has received an extension of contract from Tenaga Nasional Bhd (TNB) worth RM332.1 million to supply underground power cables to the utility giant. The group secured the one-year extension until July 2024 through its wholly-owned subsidiary Southern Cable Sdn Bhd. The subsidiary was awarded the original oneyear contract, valued at RM294 million, in July 2022. So far this year, the group has reported over RM500 million worth of new contract wins, comprising more than RM460 million worth of supply contracts from TNB and a RM44.8 million battery systems supply contract from Telekom Malaysia Bhd. Its year-to-date wins have surpassed the total win of RM390 million achieved in 2022. — by Anis Hazim Prolexus proposes 5-for-1 rights issue to raise up to RM103 mil KUALA LUMPUR (Aug 10): Prolexus Bhd intends to raise up to RM102.58 million — about 92% of its market capitalisation of RM111 million — through a renounceable rights issue of irredeemable convertible unsecured loan stocks (ICULS) to trim its bank borrowings and to fund its working capital. In a bourse filing, the apparel maker said the renounceable rights issue entails the issuance of up to RM102.58 million nominal value of 2.05 billion ICULS at its full nominal value of 5 sen each, on the basis of five ICULS for each existing Prolexus share, on an entitlement date to be determined. The conversion price of the five-year ICULS is also yet to be fixed. Besides repaying bank borrowings, for which it is allocating up to RM42.6 million — its borrowings stood at RM71.81 million as on April 30 this year — and to fund its working capital (up to RM34.18 million), Prolexus plans to use as much as RM15 million to acquire businesses that complement its existing one and RM10 million for the installation of rooftop solar photovoltaic systems. The last time Prolexus made a cash call was in December 2015, when it proposed a rights issue to raise up to RM62.53 million mainly for the construction of a new garment factory and a new fabric mill. The exercise was completed in June 2016. — by Justin Lim NEWS IN BRIEF Rapid Synergy’s unit disposes of two pieces of land in Sitiawan for RM16 mil cash KUALA LUMPUR (Aug 10): Rapid Synergy Bhd’s wholly-owned subsidiary Persiaran Eksklusif Sdn Bhd (PESB) is disposing of two pieces of land to Dunnes Sdn Bhd for RM16 million cash, which will be utilised mostly for working capital and the redemption of a loan. In a filing with Bursa on Thursday (Aug 10), the company announced that PESB has entered into a sale and purchase agreement (SPA) with Dunnes for a piece of freehold land located in Sitiawan, Perak measuring 5,493 square metres, including a 1½-storey supermarket building. Additionally, PESB has also disposed of a vacant piece of freehold commercial land measuring approximately 4,840 sq m for use as a car park. The company said its board views the sale consideration “justifiable” after taking into consideration the net book value of the properties, which are currently charged to CIMB Islamic Bank. The company stands to incur a gain of approximately RM7.8 million from the proposed disposal after considering the properties’ net book value of RM7 million as at July 31, 2023, related expenses of RM300,000 and real property gains tax of RM900,000. — by Isabelle Francis Advancecon’s associate bags RM45 mil contract to build combined cycle gas turbine power plant project in Sarawak KUALA LUMPUR (Aug 10): Advancecon Holdings Bhd’s associate has bagged a RM45.48 million award as the contractor for the proposed construction and completion of earthworks and other related works, in relation to the Miri combined cycle gas turbine power plant project. In a bourse filing on Thursday (August 10), Advancecon said its 30%-owned associate company Advancecon (Sarawak) Sdn Bhd (ASSB) had accepted the letter of award (LOA) from Petros Power Sendirian Bhd for the project. The contract period is 12 months from the date of LOA. The group intends to fund the contract via internally generated funds and/ or external borrowings. — by Justin Lim RAPID SYNERGY ADVANCECON
FRIDAY AUGUST 11, 2023 10 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 10): Chief executive officer of railtrack solutions provider Emrail Sdn Bhd Amrish Hari Narayan admitted that the company has not repaid the outstanding amount of RM34.2 million from a RM320 million financing facility granted by Kuwait Finance House (KFH) to Emrail. While being cross-examined at the High Court here on Thursday (Aug 10), KFH lawyers Datuk Firoz Hussein Ahmad Jamaluddin, Wafiy Azman and Datuk Syed Faisal asked Amrish about the payments. Firoz referred to the statement of facts filed in court, which mentioned that Emrail had proposed to KFH that it repays the outstanding amount with proceeds from the Light Rail Transit Line 3 (LRT3) project. Amrish replied that while Emrail had received payments from the project delivery partner for the project, it had not made any principal or profit payment towards the RM34.2 million owed to date. Firoz then asked him whether late payments and other amounts remain due, to which Amrish answered in the affirmative. Amrish was testifying at the High Court here on Thursday (Aug 10) in Emrail’s suit against KFH for its alleged failure to issue a compliant performance bond for the project, which was awarded to the company by MRCB George Kent Sdn Bhd in 2017. According to details of Emrail’s suit, Prasarana had stipulated that Emrail must submit a “performance bond” for almost RM40 million in favour of Prasarana and MRCB George Kent, upon undertaking the contract worth RM738 million. In January 2018, KFH granted Emrail a financing facility of up to RM320 million, which included the Murabahah Tawarruq General Working Capital Financing and Kafalah Bank Guarantee (KBG) to part finance Emrail’s working capital and other requirements as the contractor of the works package. Emrail alleged that KFH would have to issue a compliant performance bond as requested by Emrail and as required by MRCB George Kent and Prasarana which guarantees due performance of work as stipulated in the contract between Prasarana and Emrail. Emrail further claimed that a compliant performance bond was crucial to the project as it served as a prerequisite for the project, and MRCB George Kent and Prasarana were entitled to terminate the contract if a compliant performance bond was not provided. Read the full story Emrail did not repay outstanding RM34 mil for LRT3 project financing, CEO admits PUTRAJAYA (Aug 10): The Federal Court on Thursday (Aug 10) struck out King’s Counsel Jonathan Laidlaw’s appeal to be admitted as an advocate and solicitor to argue for former prime minister Datuk Seri Najib Razak in his SRC International Sdn Bhd criminal case, as the apex court considered the matter to be academic. A three-member bench led by Federal Court judge Datuk Zabariah Mohd Yusof said it is not disputing the criminal appeal, and Najib’s review application has been removed, as there is a finality in the criminal proceedings in the SRC case. “The purpose for Laidlaw’s admission was for him to argue in those appeals, and since this had been decided by the apex court, this matter (Laidlaw’s admission) is considered as academic,” Zabariah said. Following this, Zabariah, who heard the appeal with fellow Federal Court judges Datuk Nordin Hassan and Datuk Abu Bakar Jais, allowed the application by the Attorney General’s Chambers (AGC), along with the Malaysian Bar, the Kuala Lumpur Bar and the public prosecutor (PP) to strike out Laidlaw’s notice of appeal. “The notice of appeal is struck out, and no order is made as to costs,” Zabariah added. Earlier, the bench also dismissed Laidlaw’s counsel Tan Sri Muhammad Shafee Abdullah’s application to recuse Nordin and Abu Bakar from hearing the appeal for being part of the five-member apex court bench which dismissed Najib’s review over his conviction and sentence in the SRC case. Shafee’s bid to recuse two judges dismissed Shafee applied to recuse the two judges as, according to his notes, they had allegedly made comments on Laidlaw’s application during the review application. King’s Counsel Laidlaw loses bid to appear in Najib’s SRC case However, this was opposed by both the Malaysian and Kuala Lumpur Bars as well as the AGC. The bench, however, allowed the PP in the SRC case, Datuk V Sithambaram, and deputy public prosecutor Mohd Ashrof Adrin Kamarul to intervene in the hearing of the appeal. The AGC represented by senior federal counsel (SFC) Shamsul Bolhassan objected to the hearing of Laidlaw’s appeal, arguing that the SRC appeal and review had been struck out, and hence, the King’s Counsel appeal for admission should be considered academic. “Furthermore, Najib had initially discharged Messrs Shafee & Co for Messrs Zaid Ibrahim Suflan T H Liew and Partners (ZIST), and firm had indicated they would not pursue Laidlaw’s appeal matter. So, on that score, the court should consider there are no appeals filed over the Kuala Lumpur High Court decision to hear the appeal. “Shafee only filed the notice of appeal on behalf of Najib, a day after the decision after ZIST was discharged. This appeal should be considered nugatory, and will not serve any purpose, as the process of hearing Najib’s appeal in the SRC case ended with the hearing of his appeal on Aug 23 last year, and the review hearing on March 31,” Shamsul said. Read the full story BY HAFIZ YATIM theedgemalaysia.com BY TIMOTHY ACHARIAM theedgemalaysia.com PATRICK GOH/THE EDGE
FRIDAY AUGUST 11, 2023 11 THEEDGE CEO MORNING BRIEF is your company one of them? honouring Malaysia’s outstanding corporate performers TM Main Sponsor Official Car Supporting Sponsor
FRIDAY AUGUST 11, 2023 12 THEEDGE CEO MORNING BRIEF HOME PUTRAJAYA (Aug 10): The Home Ministry has gazetted an order prohibiting publications related to lesbian, gay, bisexual, transgender, queer and plus (LGBTQ+) on Swatch brand watches, including any collections of boxes, wrappers and accessories of the watches. The ministry in a statement on Thursday (Aug 10) said that the prohibition order through Government Gazette P.U.(A) 236 came into force on the same day. The statement said that the prohibition order is in line with the provisions under Section 7(1) of the Printing Presses and Publications Act 1984 (Amended 2012). The provision stipulates that printing, importing, reproducing, publishing, selling, producing, circulating, distributing or possessing such a publication is strictly prohibited in Malaysia. “The result of the publication is subject to a prohibition order, because it is the result of a publication that harms or may harm morality, public interest, and national interest by promoting, supporting, and normalising the LGBTQ+ movement, which is not accepted by the general public in this country,” said the ministry. Based on the provisions under Section 8(2) of the Printing Presses and Publications Act 1984 (Amendment) 2012, any individual who prints, imports, produces, reproduces, publishes, sells, issues, circulates, offers to sell, distributes, or has in his possession for any such purpose as a result of the publication of a prohibition, commits an offence, and if convicted he may be imprisoned for a period not exceeding three years or fined not exceeding RM20,000, or both, it said. The ministry said it is committed to maintaining public safety and order through the supervision and control of publications in order to combat the spread of elements, beliefs, and movements that conflict with local socio-culture from time to time continuously, in line with the provisions under the Printing Presses and Publications Act 1984 (Amendment ) 2012. “The Malaysian government is committed to preventing the spread of elements that are harmful or may be harmful to morality, public interest, and the country among the community,” said the ministry. In May, the ministry reportedly raided 11 Swatch brand watch boutiques in several states, and seized rainbow-themed collections often associated with the LGBT community. Read also: Home minister claims fresh rare earths theft in Kedah Home Ministry enforces ban on publications related to LGBTQ+ on Swatch watches, collections KUALA LUMPUR (August 10): Berjaya Corp Bhd (BCorp) founder and adviser Tan Sri Vincent Tan and BCorp’s unit Berjaya Land Bhd (BLand) are suing caretaker Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor over alleged defamatory remarks relating to the Selangor Maritime Gateway (SMG) project. The suit, sighted by The Edge, was filed at the Shah Alam High Court on August 8 via Tan’s lawyers. Tan and BLand are seeking general damages, compensatory damages, aggravated damages and exemplary damages. Apart from that, the lawyers have also filed an application for the High Court to issue an injunction to stop Sanusi from making similar remarks in the future. The lawyers claimed that Sanusi’s comments have “...pervaded and permeated into the (Tan’s) family circle, further aggravating the mental trauma suffered by him and his family”. They also said that Sanusi’s comments are vindictive and malicious. On Monday, Tan and BLand had issued a letter of demand to Sanusi, demanding a public apology and RM200 million in compensation from the PAS leader over his remarks on the RM700 million project involving the rehabilitation of the Klang River. Tan, through his lawyers, claimed that Sanusi’s alleged defamatory comments imply that Tan is a corrupt person, corrupt businessman and a crony to the Selangor Menteri Besar Datuk Seri Amirudin Shari. Tan claimed that the comments imply that he had benefitted directly or indirectly, or received for free a piece of 600-acre land from the Selangor state government. Tan further claimed that Sanusi’s comments imply that he had given benefits to the Selangor state government for the said land, and as such caused the state to incur losses of RM180 million. “The defamatory statements are completely untrue, extreme, vile and specious/ spurious and have no basis whatsoever,” it read. Vincent Tan and Berjaya Land sue Sanusi over alleged defamatory remarks on SMG project For the SMG project, the lawyers, in the writ, explained that a special purpose vehicle called Landasan Lumayan Berjaya Sdn Bhd (LLBSB) was formed through a joint venture between Selangor’s Menteri Besar Incorporated’s (MBI) subsidiary, Landasan Lumayan Sdn Bhd (45%) and Berjaya Hartanah Bhd (55%) to, amongst others, clean and develop the Klang River. They explained that Tan and BLand never obtained or was never awarded any land of 600 acres valued at RM10 billion as alleged by Sanusi. “In actual fact, only several parcels of land totaling 103.6 acres, were identified as feasible for development and granted approval for alienation to LLBSB by the Selangor state government with specific conditions,” the statement read. The statement clarified that BLand is the party that is required to raise funds to pay the premium based on market rate for the alienation of the 103.6-acre land to LLBSB. “The slanderous and false statements also undermine public trust, not only in Tan and BLand, but also in the institutions and governmental bodies associated with the SMG project, creating a damaging atmosphere filled with suspicion,” the writ read. The writ was filed by Messrs Pierre Chuah & Associates. The case is scheduled for case management on September 4. BY TIMOTHY ACHARIAM theedgemalaysia.com Bernama SWATCH MALAYSIA
FRIDAY AUGUST 11, 2023 13 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 11): With less than 24 hours to go before the state polls, the Selangor Pakatan Harapan-Barisan Nasional (PH-BN) unity government’s push to secure the three-term PH stronghold is stumbling over some hurdles — cast from within. The challenge for PH-BN has always been to convince supporters of BN — now a partner with PH in the Unity Government — to vote for PH candidates, particularly in urban Malay areas. But, as the last day of campaigning ramps up, the other hurdle tripping up the unity government has been the lacklustre support for PH events from the BN grassroots. At the PN talk in Hulu Kelang on Wednesday (Aug 9) night, featuring its menteri besar candidate Datuk Seri Mohamed Azmin Ali, the coalition’s top brass “welcomed” what they claimed to be a handful of Umno supporters among those who attended. During visits to other PH-contested seats on the typical campaign day, there was a notable difference in the size of the BN machinery. What PH candidates need in traditional BN territory is for BN supporters to walk shoulder to shoulder with them, exemplifying the solidarity that hardcore BN supporters need to see, in order to believe. At a PN Hulu Kelang campaign, a man in a PN shirt claimed to be an Umno member. “We (Umno members) are here (at this event, to support PN), but we’re not making it obvious,” he claimed. Citing unhappiness over the party leadership, in particular Umno president Datuk Seri Ahmad Zahid Hamidi, the supposed Umno member was emotional when explaining the reason for his presence at an opposition talk. He said several of them have helped PN to campaign, as a protest against the president and Umno’s partnership with PH overall. In our walkabouts in the state, the consistent feedback we got from grassroots Umno supporters was of discontent. Discontent with Zahid’s broken promises to not team up with PH chairman Datuk Seri Anwar Ibrahim or with the party’s bogeyman — DAP; discontent with the internal purge of respected Umno leaders in January; and discontent with Zahid himself. Even so, Unity Government leaders all spoke of improved collaborations at the grassroots level in recent weeks. For instance, events attended by PH top leaders and candidates appeared to include the participation of those garbed in BN livery. As discussions about Umno popped up, one comment from a veteran editor stood out — that nobody should underestimate the machinery of this once-dominant party that has presence in over 22,000 “cawangan” (branches) located nationwide. In BN-contested seats like Gombak Setia, the machinery has cooperated well with PH, with joint decisions and actions being implemented for the campaigning process, according to a party insider. In Lembah Jaya, where PH candidate Syed Ahmad Syed Abdul Rahman Alhadad (popularly known as the rapper Altimet) is contesting, the coalition organised training sessions for election volunteers at the Umno Ampang building, he told The Edge. “There is cooperation between BN and PH, in some areas better than in others. It is pretty good in some parts of Selangor — but it is more of PH campaigning for BN candidates,” said political analyst Dr Bridget Welsh, Honorary Research Associate with the University of Nottingham Asia Research Institute Malaysia. “I don’t see BN going out actively to campaign for PH candidates,” Bridget says. “However they are not opposing [the candidates].” These instances of lack of unity leave gaps in the PH-BN defence, which could make them vulnerable to PN’s overtures to disgruntled BN supporters. What is at risk? At least three such constituencies will see intense competition come Aug 12 — MaBY ADAM AZIZ & IZZUL IKRAM theedgemalaysia.com Down on the ground, ‘unity’ in Selangor is thin lay-majority urban seats Hulu Kelang in Gombak, Taman Medan in Petaling Jaya, and Batu Tiga in Shah Alam — taking their cue from the thin vote margins of under 10% that separated the two coalitions in the 15th General Election (GE15) nine months ago. “It’s 50-50 for Hulu Kelang,” says its constituent Ahmad, who gave his vote to PN in 2022. “It depends on where BN (Barisan Nasional) voters go...there are protests (against Zahid), but you can’t really read the situation,” adds the man in his 40s, who was previously a BN supporter. In the three hot seats, between 19.4%- 22.5% of voters opted for BN in GE15. And with Hulu Kelang and Taman Medan having straight fights between PN and PH this Saturday, where these BN votes end up this time around will ultimately determine the winner. In Taman Medan, motorsports event organiser Haziq says that “it is PH or PN here”. PN even did its candidate list announcement there, which sits in the heart of Petaling Jaya, as a show of force earlier in July. Unlike in rural areas where PAS takes the lead, PN’s success hinges on Bersatu’s presence in these urban seats, which grew at the expense of Umno even before GE14 in 2018. Once seen as a party without grassroots support, Bersatu has improved its machinery in such locations where its main competition in BN deteriorated in the last five years. With less than 24 hours to go, the phenomenon where ‘one vote for PH is one vote for BN’ and vice versa “is yet to be created fully”, said Universiti Sains Malaysia Professor of Political Sociology Dr Sivamurugan Pandian. “At the grassroots level, there is still lots of work to be done,” the political analyst said. At this point, it appears likely that PH will retain the state with a smaller majority. As urban Malay voters become more pragmatic and less fanatic, that race to the finish is the most intense for Selangor in a decade. Read also: Little change in sentiment among Malay urbanites since GE15 In Selangor, Islamist PAS tries ‘broadminded’ tune to woo urban voters SAM FONG/THE EDGE
FRIDAY AUGUST 11, 2023 14 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (Aug 10): Perikatan Nasional (PN) deputy chairman Datuk Dominic Lau Hoe Chai, who is standing as a candidate in the Bayan Lepas state constituency on Penang island, is under pressure from all sides. As the president of the Gerakan party, a component party of PN, he will be hard put to continue to lead the party if he loses this opportunity to make his party relevant in Malaysia’s political landscape. “To us there is no safe place,” said Lau in an interview, referring to the coalition’s chances in the Penang state election on Aug 12. The 19 state constituencies in Penang island have voted predominantly for Pakatan Harapan (PH). However, in the three state constituencies within the Balik Pulau federal seat, the winning margins in the 15th general election (GE15) were from 1.6% to 5%, giving PN hope of swinging some votes this time around. However, voters who were met in many of the other 21 constituencies in Penang mainland, particularly in the northern and southern regions, have expressed support for PN, lending credibility to the view that PN may make inroads into Penang. During GE15 last November, PH’s share of the vote in Penang dropped from 67% in 2018 to 60%. PH and Barisan Nasional have lost three parliamentary seats to PN. PN was only formed in 2020, with Gerakan joining the coalition a year later after quitting Barisan Nasional. Gerakan had led the government of Penang from 1969 to 2007, but suffered a wipeout in 2008. Penang voters have not looked back after transferring their votes to Pakatan Rakyat, the predecessor to PH. In the face of these challenges, Lau’s campaign focus is to target gaps in the DAPled government’s development of the country’s second-most developed state. According to Lau, there is “much to develop” in mainland Penang as compared to Penang island that is “saturated” with development. Lau, the Penang PN chairman, said his political coalition will put focus on the “many areas” in mainland Penang and have a “solid plan” to develop them. He had initially planned to contest in Machang Bubok, a state constituency in mainland Penang, but the PN leadership preferred him to contest in Malay-majority Bayan Lepas, near the southeastern tip of Penang Island. “They (PN leadership) feel that Bayan Lepas will be a better place for me, because as the president of Gerakan, and also the chairman of the PN Penang, the island will be more suitable, because Bayan Lepas is considered semi-urban, in order to suit my image,” Lau said at Gerakan’s Penang headquarters in George Town, the state’s capital city. As part of his campaign for Bayan Lepas, Lau, 55, has said that the Penang South Island (PSI) project will be scrapped if the mandate is given for PN to form the next state government. “We don’t support the PSI project. When we (Gerakan) were the government of the day in Penang, there was a reason why we had a second bridge to Batu Kawan (in Penang mainland from Batu Maung in Penang island). So we have a solid plan to develop on the mainland,” Lau said. The Penang Second Bridge plan was unveiled by the Barisan Nasional (BN) federal government in August 2006, when Gerakan played a dominant role in the Penang state legislative assembly and was part of BN. BY HAILEY CHUNG theedgemalaysia.com No safe place for Gerakan in state of its birth The party is banking on that legacy to revive its fortunes. Out of 36 seats that Gerakan is contesting in the coming six state elections on Aug 12, more than half are focused in Penang. Lau said Penang remains an important state to Gerakan as it was the place of the party’s inception, where it celebrated its peak — holding the Penang chief minister’s post for 39 years — and also where it was defeated. Gerakan, founded in 1968, became the state government of Penang by winning 16 out of 24 seats in the third general election after Merdeka in 1969. However, Gerakan has not won any seats for the past 15 years. “Penang will be the focus state for Gerakan to come back, so that’s why as president, I also have to come back to Penang. Second, I am also a Penang boy. I was born in Penang,” said Lau, who previously contested for the Batu parliamentary seat in Kuala Lumpur in 2013 and 2018 but lost to PKR. On the outlook of Gerakan, in the event that it failed to secure any seats in the state polls, Universiti Sains Malaysia’s (USM) professor of political sociology Dr Sivamurugan Pandian said Gerakan might opt to leave PN but remain as a political party. The party failed to win any seats in Parliament in GE15. In a text message to The Edge, Sivamurugan said the top leadership has fielded Lau in Bayan Lepas perhaps to get Malay support and enable a component party’s president to win a seat. However, Sivamurugan said that it will “not [be] that easy”. Lau will be facing Amanah’s Azrul Mahathir Aziz, the incumbent, in a straight fight in a state constituency where Malay candidates have usually been fielded, braving the cold shoulder by Penang PAS secretary Iszuree Ibrahim as well as lack of support from the local PAS machinery. Sivamurugan opined that it is difficult for Gerakan, a multi-racial but Chinese-based party, to win any of the 36 seats as Pakatan Harapan’s (PH) component party DAP, which Gerakan will mainly be competing against, still has the support of voters, especially the non-Malays. Lau himself, during his interview with The Edge, admitted that PAS has stronger support in mainland Penang compared to Penang island. Deflecting a question about whether he would be relying on Malay votes to win the Bayan Lepas seat, Lau, who is a senator, responded that dwelling on the fear that non-Malay voters have about PAS was a “tactic by DAP”. Read the full story Malay Chinese Indian Others Electorate breakdown (%) VOTERS’ AGE VOTERS’ RACE 18-39 40-59 60 and above 31.4 53.9 13.8 0.9 51.2 32.1 16.7 Datuk Dominic Lau Hoe Chai LOW YEN YEING/ THE EDGE
FRIDAY AUGUST 11, 2023 15 THEEDGE CEO MORNING BRIEF HOME JELEBU (Aug 10): The decision of former Penang deputy chief minister II Dr P Ramasamy to quit DAP will not affect the campaign of Pakatan Harapan (PH) in the state elections this time. DAP secretary general Anthony Loke said he had expected Ramasamy’s action following Ramasamy’s omission as a candidate in the Penang polls, besides being upset with the decision taken (to leave him out). “We are disappointed when a leader who had been given so many opportunities by the party, for three terms as a deputy chief minister, acts like this when not given a seat (in the coming election). “But the party’s struggles will continue. Individuals, [and] leaders come and go, the most important is that the party remains strong. No individual is bigger than the party,” he said when met after the ‘Santai Minum Pagi Bersama Masyarakat’ (Breakfast with the Community) programme in Kampung Chennah here on Thursday (Aug 10). The transport minister said Ramasamy should not have quit the party even though he was not nominated as a candidate for the state polls because other leaders who were not nominated chose to stay with the party and help in the party’s campaign to ensure victory for the parties in the unity government. “To me, when someone [quits the party when he] no longer gets a post in the party, it means his presence in the party was not sincere. Does it mean they were only interested in the party for the posts? No post and they immediately quit the party,” he said. Earlier, Ramasamy announced his resignation from all positions in DAP and his exit from the party, adding that he had sent his resignation letter to Loke and Penang Chief Minister Chow Kon Yeow on Thursday morning. Ramasamy, the incumbent Perai assemblyman, was dropped as a PH candidate Ramasamy’s resignation won’t affect PH’s campaign, says Loke SHAH ALAM (Aug 10): The police arrested 101 individuals including 36 women believed to be carrying out fraudulent online investment activities on two premises in USJ 1, Subang Jaya on Monday (Aug 7). Selangor police chief Datuk Hussein Omar Khan said in the raid conducted at 12.30pm, all the locals aged between 19 and 41, including managers, operations staff, information technology department technicians and call centre operators, were arrested. He said the syndicate, which used the name “GCM Asia”, had been operating for more than a year through social media platforms and websites. “It offered investment packages in foreign exchange, gold, oil, stocks and others at a minimum amount of US$100 (RM457.14). Investors were promised a handsome return of up to 30% profit within a short period of time before realising they had been duped,” he said at a press conference at the Selangor police contingent headquarters on Thursday. Hussein said 94 computers, 47 office phones, 96 mobile phones, a modem and a router were seized during the raid. “Preliminary inspection of the confiscated case items found that the GCM Asia investment application and the bank account number used by the syndicate were involved in several police reports that had Police arrest 101 individuals allegedly involved in GCM Asia investment fraud Bernama Bernama been made by fraud victims in Selangor and other states. “In fact, the GSM Asia investment scheme has been blacklisted by Bank Negara Malaysia for the past two years. The losses suffered by the victims have so far been estimated to be about RM2 million,” he said. Hussein said all suspects had been remanded for three days from Tuesday, and that the case is being investigated under Section 420 and Section 120B of the Penal Code. In another development, Hussein said the police had completed the investigation paper into the controversy surrounding UK band The 1975 at the Good Vibes Festival last month. “We have recorded 28 statements, including 17 from complainants, 10 from the Committee for Apllication for Filming and Foreign Artists’ Presentations, and one from the organiser. The investigation has been completed, and we will hand it over to the deputy public prosecutor for further action,” he said. Commenting on the issue of a group conducting a hunger strike at the Sungai Buloh Prison, Hussien said the police were still waiting for the organisers of the strike to provide their statements to complete the investigation involving statements from 22 individuals. for the Penang election and replaced by Datuk Seri S Sundarajoo for the Perai seat, which will see a four-cornered fight in the state polls this Saturday (Aug 12). Meanwhile, Loke said the optimism voiced by Perikatan Nasional (PN) leaders that they can win five out of the six states in Saturday’s state polls was just a psychological war to motivate the members. Citing the situation in Negeri Sembilan, Loke said PN does not have strong grassroots support compared to Barisan Nasional (BN) and Pakatan Harapan (PH), which have their own strengths that can boost the confidence of the two parties to gain support from the people and win. “Negeri Sembilan, [I] don’t mean to be arrogant but BN and PH have grassroots strength. This is shown in the trend of the voting pattern. Not that we want to put down the opposition but PAS and Bersatu have no grassroots strength here,” he said. Read the full story Read also: PN’s stand on Selangor MB candidate raises questions Selangor police chief Datuk Hussein Omar Khan says the GSM Asia investment scheme has been blacklisted by Bank Negara Malaysia for the past two years. BERNAMA
friday A UGUST 11, 2023 16 The E dge C E O m o rning brief world (Aug 10): The Reserve Bank of India (RBI) left its key interest rate unchanged for a third straight meeting and ordered banks to set aside more cash to mop up excess liquidity, moves signalling heightened vigilance against food-driven inflation. The central bank held the benchmark repurchase rate at 6.50% on Thursday (Aug 10) with the six-member Monetary Policy Committee (MPC) voting unanimously. All 42 economists in a Bloomberg survey predicted the move. The panel decided 5:1 to retain a policy stance focused on “withdrawal of accommodation”, which was introduced in April last year. Nineteen of the 20 economists who shared their forecast on the stance expected the move, while one predicted a change in language. “The MPC is prepared to act if the situation so warrants,” governor Shaktikanta Das said in a livestreamed address on Thursday. “Bringing headline inflation within the tolerance band is not enough. We need to remain firmly focused on bringing inflation within the 4% target.” Das also asked banks to set aside more cash temporarily in efforts to mitIndia’s central bank pauses again to battle with inflation (Aug 10): Federal Reserve policymakers are increasingly likely to leave interest rates unchanged at their next meeting after fresh evidence of easing inflation, but they’ll be careful to strike a tone that their job isn’t done yet. A report Thursday showed the core consumer price index, which excludes often-volatile food and energy costs, rose 0.2% for a second month. That marked the smallest back-to-back gains in more than two years, adding to a steady wave of disinflation in recent months. “The cooling is enough to keep the Fed on the sidelines in September but not enough to declare victory,” said Diane Swonk, chief economist at KPMG LLP in Chicago. Officials have been divided as to how to proceed from here. One faction of the Fed’s policy-setting committee argue that the past year-and-a-half of interest-rate hikes has done its job, while another group contends that pausing too soon could risk inflation reaccelerating. It’s been a balancing act to appease the two. In June, the Fed held the federal funds rate steady for the first time since it started hiking rates in March 2022, but estimated two more increases this year. The first of those was accomplished last month, and it’s unclear whether there will be a second. Earlier this week, Governor Michelle Bowman reiterated her view that the US central bank may need to raise rates further in order to fully restore price stability, while Philadelphia President Patrick Harker said that officials may be able to hold steady. Cooling inflation, along with moderating growth in job gains and wages, has been fueling hopes that the Fed can successfully tame inflation without triggering a big jump in unemployment. Several economists, including those at JPMorgan Chase & Co and Bank of America Corp, have scrapped their recession calls in recent weeks. But Chair Jerome Powell, when he speaks at the Fed’s September meeting as well as its Jackson Hole conference later this month, won’t go so far to declare victory yet. While he’s said the central bank is slowing its pace of hikes as it nears the peak, he isn’t ruling out the possibility of increases at consecutive meetings. “The Fed does not need to hike in September, pleasing the doves who want no more tightening from here on out,” said Derek Tang, economist with LH Meyer/Monetary Policy Analytics. “Even the hawks would be fine with pausing until November or later as long as the door to hikes is not closed all the way.” Fed seen pausing after tame inflation data, but mission not over by Steve Matthews Reuters by Anup Roy Bloomberg Read also: US consumer prices rise moderately in July; weekly jobless claims above expectations US economy in ‘uncharted waters’ as inflation falls with low unemployment — study “July’s CPI print is the second straight to show core inflation rises at a pace consistent with the Fed’s 2% mandate... We expect the Fed to keep rates on hold for the rest of the year,” Bloomberg Economics analysts Anna Wong and Stuart Paul said. Officials have said that monetary policy moves will depend on incoming data, with Bowman saying she’s “looking for evidence that inflation is on a consistent and meaningful downward path.” Policymakers will also see another CPI and jobs report before their Sept 19-20 meeting. The Fed may want to keep open the option to hike later because of a potential re-acceleration in the economy, said Neil Dutta, head of economics at Renaissance Macro Research LLC. “The economy is growing above trend,” Dutta said on Bloomberg Television. “I don’t think the Fed has done enough. There is a risk that the Fed is patting itself on the back by the end of the year only to watch inflation potentially turn back up.” Read the full story igate a surge in banking system liquidity after a “lukewarm” response to the RBI’s 14-day variable reverse repo auctions. Banks will maintain an incremental cash reserve ratio of 10% from Saturday. Excess liquidity with lenders has surged after over 76% of the highest denomination 2,000-rupee notes were returned to the financial system after the government gave citizens a Sept 30 deadline to deposit the legal tender with banks. The move was desirable in light of price stability and will be reviewed by Sept 8, Das said in the post policy briefing, adding that a little above one trillion rupees (RM54.9 billion) will be removed from banking system. There will be enough liquidity with banks to continue with lending activity in the festive season, he assured. A gauge of banking index fell as much as 0.9%, dragging the benchmark stocks index also along with it after the move. Bond yields fell two basis points to 7.16%, while the rupee was little changed. The central bank raised its inflation forecast to 5.4% for the year ending in March, from 5.1% in its last review. It retained a 6.5% growth target in the current fiscal year. Bloomberg
friday A UGUST 11, 2023 17 The E dge C E O m o rning brief world (Aug 10): President Joe Biden imposed limits on US investments in China as part of a push to restrict the country’s ability to develop next-generation military and surveillance technologies that might threaten US national security. The order, announced Wednesday (Aug 9), would regulate US investments in some Chinese semiconductor, quantum computing and artificial intelligence firms. It was signed after almost two years of deliberations that saw China hawks argue for faster, tougher action while others, including the Treasury Department, sought narrower measures that would take longer to go into effect. While details of the rules still need to be worked out, the language of the order suggested that Treasury and those advocating a more cautious approach won out. The order, which won’t go into effect until next year, won’t be retroactive and excludes sectors such as biotechnology. It may end up exempting passive investments as well as those in publicly traded securities, index funds and others assets. “For the business community, this is relatively good news,” said Sarah Bauerle Danzman, a senior fellow at the Atlantic Council and associate professor of international studies at Indiana University. “It’s a relatively narrow notification process and very narrow set of prohibitions.” Targeting equity Venture-capital firms and the tech industry had lobbied the Biden administration to narrow the scope of the order, after investors feared the White House would impose sweeping limits on US investment. Allied nations had also resisted, with the European Union and others saying that severe restrictions could hurt their economies. Biden administration officials said the order targets those who look to acquire equity interests in restricted Chinese companies via mergers, private equity and private capital, as well as by joint ventures and financing arrangements. It’s expected to be limited to Chinese startups and larger firms that get over 50% of their revenue from the restricted sectors. The US already limits exports of some sensitive technologies to China, and the order “would prevent US investments from helping accelerate the indigenisation of these technologies” in what it called countries of concern, the White House said in a release. The order defined that as China, Hong Kong and Macau. ‘Very disappointed’ China is “very disappointed” in the US decision to go ahead with the restrictions and will safeguard its own interests, Embassy spokesman Liu Pengyu said in a statement. “China opposes the US overuse of national security to politicise and weaponise trade, scientific and technological issues and deliberately making obstacles to normal economic and trade exchanges and technological cooperation,” Liu said. The restrictions are the latest in a series of US actions that have complicated the Biden administration’s push to improve relations with China, after a succession of flare-ups over Taiwan, rights abuses in Xinjiang, intellectual property threats, and an alleged Chinese spy balloon that was shot down in February. Not least among the irritants have been export controls on semiconductor technology announced last year and efforts by Congress to push the White House toward taking a harder line, including on defending Taiwan. Low-key rollout The White House announced the order after US markets closed Wednesday, but reaction was expected to be muted. Major US investors had anticipated it for some time, and venture-capital firms had already been scaling back their bets on Chinese startups for well over a year. by Jenny Leonard Bloomberg Biden narrows China investment order as US seeks better ties A relatively low-key rollout on Wednesday showcased how cautious the White House is about ratcheting up tensions with China. Instead of announcing it in the presence of media and giving public remarks on the matter — as is often the case for executive orders — Biden opted to sign it while out of town and without cameras. The president was travelling in New Mexico to promote his “Bidenomics” agenda and didn’t address the order. Biden in May predicted a “thaw” was coming in US-China relations, which over the past year have deteriorated to their worst in decades. The president also said repeatedly that he plans to speak to and meet with his Chinese counterpart, President Xi Jinping, in the near future. The two leaders could meet in November when Biden hosts the APEC summit in San Francisco, but neither side has confirmed the plans. Allies, businesses A key question now is whether other countries will follow Washington’s move, including fellow Group of Seven countries. The administration has briefed allies and partners about the order over the past year, arguing that it must be done in coordination with them to avoid the backfilling of curtailed US investments. So far, none have followed through. A UK government spokesperson said the order helps clarify the US approach to China and Prime Minister Rishi Sunak’s government will consider it closely. A fact sheet that accompanied the announcement underscored how much of the order remains a work in progress. It said, for example, the Treasury was “considering” the prohibition of investments in technologies that remained loosely defined, with more specific definitions subject to input the Treasury will gather during a 45-day comment period. Daniel Tannebaum, partner at Oliver Wyman, said that the release of the EO is just the start of the process and gives businesses plenty of time to weigh in on how the restrictions will ultimately work. “We’re not done yet,” Tannebaum said. “We need to see what this ultimately looks like but it’s encouraging that they’re giving industry a chance to weigh in on a whole host of topics.” A relatively low-key rollout on Wednesday showcased how cautious the White House is about ratcheting up tensions with China. Instead of announcing it in the presence of media and giving public remarks on the matter — as is often the case for executive orders — Biden opted to sign it while out of town and without cameras. Read the full story
FRIDAY AUGUST 11, 2023 18 THEEDGE CEO MORNING BRIEF WORLD (Aug 10): Potential strikes at three major liquefied natural gas (LNG) facilities in Australia could disrupt about 10% of global exports of the fuel and deliver a new energy price shock across Asia and Europe. Workers at Chevron Corp and Woodside Energy Group Ltd facilities in Australia have voted to approve industrial action at the North West Shelf, Wheatstone and Gorgon operations, and some walkouts could begin as soon as next week under labour rules. European natural gas jumped Wednesday (Aug 9) by as much as 40% — a move not seen since the early weeks of the Russian invasion of Ukraine last year that upended global supply of the fuel. Benchmark futures also briefly topped €40 (RM200.87) a megawatt-hour (US$12.80 [RM58.54] a million British thermal units) for the first time since June, though they are still down more than 80% from the unprecedented levels hit in August last year. “The situation highlights the importance of Australian LNG for global energy security, with even the possibility of a disruption to Australian gas supply causing large price spikes as far away as Europe,” said Saul Kavonic, a Sydney-based energy analyst at Credit Suisse Group AG. “But in all likelihood an accommodation will be reached before it presents a material impact on global LNG supply.” Australia labour strikes risk 10% of global LNG in threat of new energy shock (Aug 10): A surge in rice prices to the highest level in almost 15 years is renewing fears that food costs are going to get a lot more expensive for the world’s poorest people. The grain is vital to the diets of billions in Asia and Africa. Rice contributes as much as 60% of total calorie intake for people in parts of Southeast Asia and Africa, and that rises to 70% in countries like Bangladesh. The latest price jump increases stress on global food markets already roiled by extreme weather and the escalating conflict in Ukraine. Thai white rice 5% broken, an Asian benchmark, climbed to US$648 (RM2,964) a ton this week, as dry weather threatens Thailand’s crop, and after top shipper India — which accounts for 40% of the world’s trade — ramped up export curbs to protect its local market. “Higher rice prices will contribute to food inflation, particularly for poor households in the major rice-consuming nations of Asia,” according to Joseph Glauber, a senior fellow at the International Food Policy Research Institute in Washington. “Countries often follow suit when one country imposes export bans. The world’s poor are the biggest losers.” Mounting concerns over tighter global supply are amplifying risks of a fresh wave of trade protectionism, as governments look to ensure ample food reserves. The return of the El Niño weather pattern, which could dry up water-dependent rice crops in Asia, is exacerbating those fears. Soaring rice prices stretch budgets for billions in Asia, Africa “Rice is a more valuable commodity than before El Niño started up and Russia escalated its attacks on Ukraine’s wheat and corn exports,” said Peter Timmer, a professor emeritus at Harvard University who’s studied food security for decades. Prices could climb a further US$100 a ton in six to 12 months, he said. “The big question is whether the price rise will be gradual, giving consumers time to adjust without panic, or whether there will be a rapid spike to US$1,000 a ton or higher,” said Timmer, who worked with Asian governments on their policy response during the 2008 food crisis. That was when rice soared above those levels after export bans by major producers, notably India and Vietnam. El Niño risk Most of the world’s rice is grown and consumed in Asia, where farmers are already grappling with heatwaves and drought. Thailand, the world’s second-biggest shipper, is encouraging farmers to switch to crops that need less water, while farmers in Indonesia’s top rice-producing regions are planting corn and cabbages in anticipation of drought. The biggest risk will be whether El Niño and climate change will disrupt agricultural production and drive overall food inflation higher, said Chua Hak Bin, a senior economist at Maybank Investment Banking Group in Singapore. “This could trigger more protectionist policies, including export controls, which could exacerbate global food shortages and price pressures” he said. “Emerging market economies are more vulnerable to such food price shocks given the larger food weights in the consumer basket.” Still, strict government-enforced price controls as well as food subsidies in many consuming countries could help keep a lid on inflation. The current episode looks “relatively tame” compared to then, Maybank’s Chua said. BY ANURADHA RAGHU Bloomberg BY DAVID STRINGER & DAN MURTAUGH Bloomberg Read also: Opec flags healthy oil market fundamentals in second half Read the full story
friday A UGUST 11, 2023 19 The E dge C E O m o rning brief world (Aug 10): Asia’s once-richest woman has lost more wealth than any other billionaire in the world in just over two years, as her Chinese property development company falls deeper into a debt crisis. Yang Huiyan, the chair of Country Garden Holdings Co, has seen her fortune slump by 84% since its peak in June 2021, including a drop of 8.2% on Tuesday (Aug 8) alone, according to the Bloomberg Billionaires Index. Country Garden missed coupon payments due on Monday, putting the real estate developer on course for its first public default if it doesn’t make the payments within a 30-day grace period. Yang’s fortune has shrunk by US$28.6 billion (RM130.80 billion) from its peak, leaving her with a net worth of US$5.5 billion. That’s the biggest dollar decline among the ultra-rich tracked by Bloomberg’s wealth index over that period. The 41-year-old tycoon’s wealth is mainly derived from her stake in Country Garden, whose shares have dropped almost 60% this year, as tumbling home sales and soaring refinancing costs hit China’s real estate industry. The Foshan-based business that trades publicly in Hong Kong had revenue of 430 billion yuan (US$60 billion or RM272.76 billion) in fiscal 2022. Even her loss of wealth is dwarfed by that of another Chinese property billionaire, China Evergrande Group’s Hui Ka Yan. Hui has seen his fortune dwindle to US$3.2 billion, from a peak of US$42 billion in 2017, as his real estate firm defaulted. China’s property tycoons have seen their wealth eroded after the government cracked down on excessive borrowings in the industry in 2020, making it hard for developers to refinance swelling debts. The ensuing cash crunch triggered record offshore defaults, wiped out billions Once Asia’s richest woman, Chinese property tycoon loses more wealth than any billionaire (Aug 10): Country Garden Holdings Co expects to report a multibillion-dollar loss for the first half of this year, as the Chinese developer provided more specifics to its recent forecast that helped fuel stock and bond declines. The country’s sixth-largest builder said in a Hong Kong exchange filing Thursday night it anticipates posting a net loss of 45 billion to 55 billion yuan (US$6.2 billion to US$7.6 billion), compared with earnings of 1.91 billion yuan in the first half of 2022. The company on July 31 only said it expected a loss for the opening half of 2023. For the first seven months of this year, attributable sales fell 35% to 140.8 billion yuan, Country Garden said Thursday. It had been the country’s biggest developer by sales the past several years. “Due to the recent deterioration of sales and refinancing environment, the available funds in the book of the company have been continuously reduced, resulting in a phased liquidity pressure,” Country Garden said. The firm earlier this week missed two dollar bond interest payments, starting a 30-day grace period. Country Garden’s filing didn’t address those coupons. The company is one of the few major Chinese developers yet to default, and a failure to pay its debts would pummel fragile investor sentiment just as Beijing seeks to revive the troubled property market. Country Garden’s dollar bonds plunged 59% the past month, according to prices compiled by Bloomberg, and shares have fallen 30% as worries about the builder’s debt-repayment abilities surged. Earlier Thursday, Moody’s Investors Service downgraded the developer by three notches to Caa1, noting “heightened liquidity and refinancing risks in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding.” Country Garden forecasts firsthalf loss of up to US$7.6 bil by Richard Macauley Bloomberg by Diana Li Bloomberg of dollars of investments, and delayed construction of thousands of homes. Prior to the collapse, rapid expansion of the residential property sector made Yang, Hui and their peers some of the wealthiest people in the nation. Yang agreed last month to transfer more than half her personal stake, worth about US$826 million, to a charity founded by her sister. She’ll retain the voting rights. Yang’s father co-founded Country Garden in 1992, and transferred a controlling stake to her in 2005, after she joined the company as his personal assistant to learn the ropes and eventually succeed him. She became China’s richest woman at age 25, after Country Garden raised US$1.65 billion in a Hong Kong initial public offering in April 2007. In 2023, she took over as the sole chair after her father resigned, citing his age. Read also: Country Garden billionaire bags big payouts as default looms Yang, who the Bloomberg Billionaires Index estimates has a net worth of more than US$5 billion, will get about US$28 million in dividends Friday for her personal stake in the firm’s services unit, according to Bloomberg calculations. That’s enough to cover the US$22.5 million bond payments Country Garden missed this week. A foundation owned by her family could bag another US$35 million in cash payouts. bloomberg Yang Huiyan
friday A UGUST 11, 2023 20 The E dge C E O m o rning brief world (Aug 10): Ant Group Co’s quarterly profit rose 17.4%, marking a sign of improvement at a company emerging from more than two bruising years of a Chinese regulatory crackdown. The Hangzhou-based company contributed nearly 4.4 billion yuan (US$610 million or RM2.79 billion) of profit to Alibaba Group Holding Ltd, a filing showed on Thursday (Aug 10). Based on Alibaba’s one-third stake in Ant, that translates into an estimated 13 billion yuan in profit for the financial technology company’s March quarter. That compares with a 56% fall in profit in the previous quarter. Ant’s earnings lag a quarter behind Alibaba’s. The company declined to comment in an emailed statement. A multi-year government crackdown on the technology sector is nearing an end after Beijing slapped more than US$1 billion of fines on Ant and Tencent Holdings Ltd in July. Ant awaits a financial holding company licence, which would pave the way for a revival of an initial public offering (IPO). The company’s valuation was trimmed to about US$79 billion in a recent proposed share buy-back, far below its peak of US$280 billion before the scrapped IPO. Billionaire Jack Ma, who has largely remained out of public sight in recent years, has said he will cede control of the company amid a broader retreat. He returned Jack Ma-backed Ant’s profit rises 17% in first signs of uplift (Aug 10): Alibaba Group Holding Ltd returned to growth across all its main divisions, defying China’s economic turbulence to take a first step toward a long-awaited comeback after more than a year of malaise. China’s online shopping leader, a proxy for the country’s consumer demand, reported a better-than-expected 14% rise in revenue during a quarter when the world’s No 2 economy struggled to gain momentum after years of Covid Zero restrictions. Its shares jumped more than 3% in pre-market trading. The strong showing marks a step toward the revival of a national icon grappling with a post-Covid consumption funk, up-and-comers like PDD Holdings Inc and the lingering effects of China’s blistering crackdown on the private sector. Alibaba drove that expansion while cutting costs 6%, helped in part by a 3% reduction in its workforce or more than 6,500 people. Alibaba, which along with Tencent Holdings Ltd and Baidu Inc is credited for creating China’s internet industry, now needs to win over investors to effect a complicated overhaul that will split the company six ways. For now, the results provide a solid foundation for Alibaba co-founders Joseph Tsai and Eddie Wu as they take over leadership of the company from Daniel Zhang in September. Alibaba’s cloud division reversed its decline in the quarter and the overseas arm that includes Singapore-based Lazada and Trendyol expanded revenue 41%. Its core domestic commerce division — which now excludes certain marginal segments — chalked up its first sales rise in more than a year. “We view the solid revenues and profit beat delivered in FY1Q24 as what the Street has been waiting for,” Citigroup analysts led by Alicia Yap wrote. “Most investors had expected an OK quarter, but the magnitude of the outperformance, especially on the profit beat, likely has exceeded most expectations.” Alibaba reported revenue of 234.16 billion yuan (US$32.3 billion) for the June quarter versus an average projection of 223.75 billion yuan. Net income rose about 50% to 34.3 billion yuan, also beating estimates. Alibaba takes a step towards comeback as growth finally returns by Jane Zhang & Sarah Zheng Bloomberg by Lulu Yilun Chen Bloomberg to China in March after a long period of staying overseas. Ant last month proposed to buy back as much as 7.6% of its shares, giving investors a chance to reduce exposure to the company. Investors including Warburg Pincus, Canada Pension Plan Investment Board, Carlyle Group and GIC Pte Ltd are among the top foreign shareholders that aren’t participating in the buy-back, Bloomberg News reported, citing people familiar this week. Fidelity and T Rowe Price Group Inc have agreed to sell some shares. Ant is also preparing to break off its international business, blockchain and database management services, people familiar with the matter have said. Its affiliate Alibaba has decided not to sell any of its one-third stake in Ant. Investors are waiting for more details on the spinoffs, including grocery arm Freshippo, the AWS-like cloud business and Cainiao logistics. In the June quarter, the cloud business returned to growth with revenue inching up 4%, while Chinese retail e-commerce revenue surged 13%. The numbers “showed promising early results of our reorganization, which is beginning to unleash new energy across our businesses,” Zhang, who officially steps down next month, told analysts on a conference call. “Alibaba’s proposed listing of nearly US$60 billion of assets through 2024 could give the group resources to step up its competitive efforts in China’s grocery retailing, cloud-AI and logistics sectors. Freshippo might use proceeds from an IPO valuing it at US$4 billion to chase Walmart’s lead in grocery e-commerce sales. After an IPO that could value it at US$45 billion, Alibaba’s cloud unit might scale up with support from new strategic investors to tackle Tencent, Huawei and China Telecom. An IPO of Cainiao, perhaps valued at US$10 billion, could accelerate the logistics unit’s expansion in China and overseas,” said Bloomberg Intelligence analysts Catherine Lim and Trini Tan. China’s largest tech companies Alibaba and Tencent Holdings Ltd have gained some US$70 billion of market value since May’s end, propelled by expectations of a gradual return to the consistent double-digit growth they enjoyed before Beijing launched a regulatory assault against its biggest private companies in 2020. Read the full story Bloomberg
friday A UGUST 11, 2023 21 The E dge C E O m o rning brief world (Aug 10): Vietnam’s electric-vehicle maker VinFast Auto Ltd plans to start trading on the Nasdaq next week after a NYSE American-listed special-purpose acquisition company approved their merger. Black Spade Acquisition Co shareholders on Thursday signed off on the combination with the manufacturer. VinFast expects to debut on the Nasdaq on or around Aug 15 under the symbol VFS. The deal values the company at about US$23 billion, a statement last month showed. The planned Nasdaq listing, confirming an earlier Bloomberg News report, caps VinFast’s years-long efforts to become a publicly traded company. The manufacturer is selling made-in-Vietnam electric cars and is currently building a factory in the US. VinFast still has a long way to go though. The company has been held back by operational problems, hobbling its ambition to gain market share in the competitive EV space. In May, VinFast recalled all the electric sport utility vehicles shipped to the US over a software malfunction, and its losses have been widening due to the cost of its expansion. It’s somewhat unusual for VinFast to list on a different exchange than the one its blank-check company is traded on. In a typical SPAC merger, the blank-check company’s backers receive new stock in the combined firm in exchange for their old SPAC shares, which are canceled and delisted. The new shares begin trading immediately after the closing of the deal, nearly always on the exchange where the SPAC was approved. Although Black Spade is NYSE American-listed, VinFast’s prospectus ahead of the vote said the company intended to apply to list on either the NYSE, NYSE American or the Nasdaq. An equity valuation of US$23 billion, or US$27 billion including debt, would mean VinFast will trade at a premium to most peers including Rivian Automotive Inc and Nikola Corp, according to Bloomberg Intelligence analysts Ken Foong and Siti Nur Fairuz Khalil. Black Spade raised US$169 million in a US IPO on the NYSE in 2021, and shifted its listing to the NYSE American in June. About 84% of Black Spade shareholders opted to redeem their stock for cash when approving a deadline extension for the SPAC merger. The redemptions left less than US$30 million in the SPAC’s trust. Around 99.99% of Thursday’s votes were cast in favour of the merger. VinFast and Black Spade expect to close the combination on Aug 14. VinFast last month broke ground at its North Carolina factory. The plant is expected to have an initial capacity to make 150,000 vehicles a year, and the company plans to begin production in 2025. EV maker VinFast set to list on Nasdaq in rare SPAC venue switch (Aug 10): HSBC Holdings Plc said it was deceived by oil tycoon Lim Oon Kuin and his children as civil lawsuits brought by the bank and liquidators of his collapsed fuel trading empire kicked off in Singapore. Hin Leong Trading Pte and its court-appointed managers are suing the Lims as they seek to recover funds to pay more than 20 bank creditors including HSBC and DBS Group Holdings Ltd. HSBC’s suit against the Lims also got underway in a case alleging conspiracy and fraudulent misrepresentation over two transactions, It’s seeking to recover more than US$85 million (RM388.7 million), a fraction of what was lost. “It is HSBC’s case that it has been a victim of brazen fraud perpetrated by the defendants,” the bank’s lawyers said in an opening statement, adding the Lims cheated various banks into extending financing by hiding Hin Leong’s dire business straits. The lenders combined are owed about US$3.5 billion after Singapore-based Hin Leong failed under a cloud of alleged fraud and hidden losses about three years ago. The company was once one of the largest fuel traders in the Asian finance hub. OK Lim, as the 81-year-old businessman is popularly known, is separately facing multiple charges of cheating and forgery brought by prosecutors. He pleaded not guilty in a trial earlier this year with the verdict yet to be announced. Most exposure “The Lim family must be held accountable for their fraudulent actions,” lawyers for the liquidators Drew & Napier LLC said in their opening statement. “The egregiousness of their conduct warrants no less a response than that.” Hin Leong’s liquidators are PricewaterhouseCoopers LLP’s Chan HSBC says it’s a victim of brazen fraud by Singapore oil tycoon Kheng Tek and GTP Advisory PAC’s Goh Thien Phong. Cavinder Bull, leading the liquidators’ suit, said the Lims’ defense that hinge on blaming a team of employees who let them down was not credible. The Lims deliberately perpetuated a fraud and none of the banks would have dealt with them if they knew the truth, Bull said. At the same hearing, Sarjit Singh Gill of Shook Lin & Bok LLP, representing HSBC, accused the Lims of deliberately concealing “staggering losses” from its financiers. “It is now diabolical for the Lims to try to throw their employees under the bus,” he said. In their defense, Lim’s lawyers from Davinder Singh Chambers LLC said in their opening statement that the liquidators’ claims have no merit in law and in fact, and should be dismissed. It said the same of HSBC’s claim, adding the lender’s evidence is “riddled with inconsistencies,” not supported by documents and is self-serving. London-based HSBC is seen as having the most exposure to Hin Leong’s collapse at US$600 million, based on earlier estimates in court filings. DBS, ABN Amro Bank NV and Singapore’s Oversea-Chinese Banking Corp are next at about US$200 million to US$300 million each. Lim’s family, including his children Evan Lim Chee Meng and Lim Huey Ching, had as much as US$3.5 billion of assets worldwide frozen by the Singapore High Court in 2021. The children were both directors of Hin Leong. by Low De Wei Bloomberg by Nguyen Kieu Giang Bloomberg reuters
friday A UGUST 11, 2023 22 The E dge C E O m o rning brief world (Aug 10): The Philippine economy expanded much slower than expected in the second quarter, reeling from the impact of above-target inflation, borrowing costs at a 16-year high and government underspending. Gross domestic product (GDP) in the three months through June rose 4.3% from a year earlier, the statistics authority said on Thursday (Aug 10). That’s below all 24 estimates in a Bloomberg survey with a median forecast for 6% and compares with 6.4% growth in the first quarter. Barring the pandemic years of 2020 and 2021, the April-June annual expansion was the slowest since 2011. The economy fell 0.9% quarter-on-quarter, against a median estimate for a 0.6% gain. A major drag on output was the 7.1% year-on-year decline in government expenditure which Philippine economic managers blamed on procurement bottlenecks and high base effects driven by last year’s election-related spending. Lower interest rates may benefit the Southeast Asian economy, they added. “The improving outlook for inflation bodes well for the easing of interest rates and should pave the way for the expansion of activities of businesses, households, and the rest of the private sector,” according to a joint statement of the economic managers including National Economic and Development Authority secretary Arsenio Balisacan. The peso dropped to a nearly nine-month low after the data. Stocks fell more than 1%. The disappointing performance underscores the challenges confronting one of Asia’s fastest-growing economies as inflation hovers above the central bank’s 2%-4% target while interest rates remain among the highest in Southeast Asia. First-half GDP rose 5.3% against the full-year target of 6%-7% and officials said it needs to grow by at least 6.6% in the second half to meet the 2023 goal. “Notwithstanding the challenges, we believe this is still attainable,” they said in the statement. Government spending will accelerate “to allow us to recover our growth momentum”, the officials said. Growth in household consumption eased from 6.4% in the first quarter. Other key details from the GDP print: • Consumer spending rose 5.5% yearon-year, fell 1% quarter-on-quarter • Investments were down 0.04% y-o-y • Services were up 6% y-o-y, down 1.02% q-o-q Read the full story Philippines’ GDP growth stumbles as high prices, rates sting TOKYO (Aug 10): Japan’s Rakuten Group will fold its payments and points businesses into its credit card unit, it said on Thursday (Aug 10), a move that could set up the struggling e-commerce company to eventually list the card business. Despite strong revenue from its core e-commerce offerings, Rakuten has lost money for 12 straight quarters, hit by the costly build-out of its mobile phone business, which has failed to gain traction in Japan. It has turned to listing some of its units — including its popular internet banking business, Rakuten Bank, to generate cash. The company said on Thursday it plans to consolidate its payments and points businesses and fold them into Rakuten Card, its credit card and loans unit. Rakuten Card will become the “driving force” behind its integrated payments business and may form strategic partnerships with other companies as well as “raising its own capital as necessary”, Japan’s struggling Rakuten to combine credit card and mobile payments business by Anton Bridge Reuters by Andreo Calonzo & Ditas Lopez Bloomberg Rakuten said in a statement. Public broadcaster NHK earlier reported the plan to combine the businesses. Points and payments are at the heart of Rakuten’s ecosystem, which is designed to draw customers into its broad spectrum of offerings. Users accumulate points by using Rakuten credit cards, shopping and insurance services. The points can be used to buy groceries, pay bills or book travel. At its quarterly earnings briefing later on Thursday, Rakuten committed to taking on no additional gross debt, instead using equity-related financing to reduce its debt burden. The group has a total ¥1.9 trillion (RM60.3 billion) in debt, with ¥406 billion due in 2024 and a further ¥430 billion in 2025, according to Refinitiv data. In the April-June period, Rakuten posted an operating loss of ¥48.9 billion, narrowly better than expectations of a loss of ¥51.2 billion, based on the average of six analysts polled by Refinitiv. Losses at the mobile segment narrowed to ¥82.4 billion on higher average revenue per user and increasing subscriptions. On Monday, Rakuten announced the departure of mobile chief executive Tareq Amin, who had headed the unit since March 2022.
friday A UGUST 11, 2023 23 The E dge C E O m o rning brief world news In brie f Singapore gasoline pump price soars to 11-month high in inflationary blow (Aug 10): Pump prices in Singapore have surged to an 11-month high, adding to concerns about persistent inflation in the Asian financial hub. The cost of 95-octane gasoline, the city-state’s most widely used automotive fuel, rose to a maximum of S$2.88 a liter (RM37 a gallon) on Aug 7, the highest level since late August 2022, according to data from vehicle service platform Motorist. Policymakers have expressed concern about inflation, which is still at historically high levels after peaking in August last year. The higher gasoline prices are reflective of global trends, driven by surging prices for crude amid a possible escalation of Russia’s war with Ukraine. “Private transport prices account for 12.21% of the headline CPI basket, which is not insignificant,” said Selena Ling, chief economist at Oversea-Chinese Banking Corp based in Singapore. Although energy costs are still lower than a year ago, upward price pressures in the coming months “could feed into logistics and other business costs,” she said. — Bloomberg China EV brand Zeekr to launch its first luxury sports car SHANGHAI (Aug 10): China’s Zeekr, Geely Automobile’s electric vehicle brand, said on Thursday (Aug 10) it will launch its first luxury sports car, which will be priced above one million yuan (US$140,000 or RM630,000). A person with direct knowledge of the matter added that the company plans to launch the Zeekr 001 FR sports car within weeks and aims to deliver the first batch of cars this year. While Chinese EV makers have ramped up efforts in developing more cost-efficient products facing a brutal price war started by Tesla at the beginning of the year, some of them are also moving upscale to the top segment of high-performance EVs to seek higher margins. BYD launched an electric off-road SUV with a starting price of 1.098 million yuan as the first model under its luxury brand Yangwang in January. Founded in 2021 as a premium EV brand, Zeekr has three models for sales with starting prices ranging from 189,800 yuan to 499,000 yuan. — Reuters reuters India clears Sony-Zee deal to form US$10 bil entertainment powerhouse NEW DELHI (Aug 10): India paved the way on Thursday (Aug 10) for a US$10 billion (RM45.7 billion) media and entertainment powerhouse, giving Zee Entertainment and the Indian unit of Japan’s Sony Group a key merger approval. Zee’s shares were up 16.6% after the National Company Law Tribunal cleared the long-delayed deal to create a company which will be nearly 51% owned by Sony Pictures Networks India (SPNI) and 3.99% by Zee’s founders. The Zee Group is among India’s first privately owned television networks and industry executives say the Sony-Zee alliance stands to become the country’s biggest industry player, with significant distribution and advertising muscle. The combination, which was announced in 2021, hit problems after the Securities and Exchange Board of India banned Zee’s CEO, who had been lined up to run the merged entity, from the boardrooms of listed companies for a year. Zee later formed an interim committee under the supervision of its board to run operations after chief executive Punit Goenka failed to get the ban overturned at appeal. Goenka told India’s Economic Times in June that the merger would go ahead whether or not he was CEO of the new entity. In February, an Indian tribunal put on hold insolvency proceedings initiated by lender IndusInd Bank Ltd against Zee, in a major relief for the media company. Later, the company settled its dispute with the lender. Last year, Zee and Sony offered concessions such as pricing discounts to help ease regulatory concerns and received antitrust approval for the merged entity, which will compete with Walt Disney India and billionaire Mukesh Ambani-owned Network18. — Reuters Yen dips to weakest since 2008 against euro, eyes 145 per dollar (Aug 10): The yen fell to the weakest against the euro since 2008 on Thursday, extending losses after tepid US inflation data and putting traders on guard for jawboning from Japanese officials. The currency set fresh session lows against the euro, falling as much as 0.8% to 158.96, after US consumer pricing data affirmed that the Federal Reserve could hold rates steady at its September meeting. The yen gained immediately against the greenback following the release, only to reverse course and slip 0.3% lower to 144.2. The closely watched 145 per dollar level is still in reach if losses extend. The last time it reached that mark was at the end of June. Japanese authorities stepped in to support the yen last year for the first time since 1998 after the currency tumbled toward 146. That sent the currency on a rally to below 130 at the start of the year, before it resumed its weakening trend. Japan is the only nation that maintains a negative benchmark interest rate in the world. “The fact that it’s breaking out now is a function of a reduction in bond volatility and event-risk out of the way until Jackson Hole, so there is a carry element to it,” said Brad Bechtel, a foreignexchange strategist at Jefferies. He expects the yen to fall to 160 against the euro, “and then we’ll have to see.” A recent policy adjustment by the Bank of Japan, which allowed benchmark 10-year rates to move up toward 1%, has provided little support to the currency. — Bloomberg Texas Instruments plans up to US$1 bil investment to expand Philippine facilities MANILA (Aug 10): Analog chipmaker Texas Instruments is planning to invest up to US$1 billion (RM4.5 billion) to expand its Philippine facilities, the Southeast Asian nation’s presidential communications office said on Thursday (Aug 10). Texas Instruments is set to submit in two weeks an application covering the expansion of its sites north of the capital Manila, the presidential office said. — Reuters reuters
friday A UGUST 11, 2023 24 The E dge C E O m o rning 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) Classita Holdings Bhd 207.70 -0.005 0.095 -73.97 117.1 Velesto Energy Bhd 93.70 -0.010 0.220 46.67 1807.4 KNM Group Bhd 89.10 0.005 0.090 80.00 364.0 Widad Group Bhd 85.70 -0.005 0.430 0.00 1331.5 Handal Energy Bhd 55.20 -0.050 0.215 38.71 57.3 MR DIY Group M Bhd 53.60 0.120 1.550 -22.50 14623.3 CAPITAL A BHD 50.50 0.030 1.050 68.00 4420.1 Bumi Armada Bhd 46.20 0.010 0.515 7.29 3050.2 Advance Synergy Bhd 43.50 -0.005 0.170 -2.86 430.0 Jade Marvel Group Bhd 40.50 -0.015 0.195 -37.10 84.8 Sapura Energy Bhd 36.50 0.005 0.060 71.43 958.7 UCrest Bhd 35.00 0.020 0.205 64.00 152.1 Sarawak Consolidated 34.50 -0.005 0.435 200.00 278.5 UEM Sunrise Bhd 33.60 0.000 0.525 105.88 2655.7 SMTrack Bhd 33.10 0.005 0.030 -40.00 36.1 Ea Technique M Bhd 28.80 0.015 0.220 29.41 116.7 Perdana Petroleum Bhd 28.40 0.005 0.185 48.00 410.5 SerSol Bhd 25.60 0.000 0.150 -34.78 109.7 Sunsuria Bhd 24.30 0.055 0.525 59.09 470.4 Tanco Holdings Bhd 22.30 -0.005 0.545 62.69 1063.0 Data as compiled on Aug 10, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) DGB Asia Bhd 0.010 100.00 618.1 -33.33 18.80 Metronic Global Bhd 0.015 50.00 363.7 -25.00 23.0 Talam Transform Bhd 0.015 50.00 382.0 0.00 64.4 TECHNA-X Bhd 0.015 50.00 1,181.2 -40 33.2 Mlabs Systems Bhd 0.020 33.33 341.0 0 29 XOX BHD 0.020 33.33 5,146.9 33.33 101.0 XOX Technology Bhd 0.045 28.57 527.9 0.00 40.2 Alam Maritim Resources Bhd 0.030 20.00 828.3 20.00 46.0 MQ Technology Bhd 0.030 20.00 1,855.8 -40.00 41.4 SMTrack Bhd 0.030 20.00 33,126.8 -40.00 36.1 Aldrich Resources Bhd 0.035 16.67 186.0 16.67 39.0 Saudee Group Bhd 0.035 16.67 18,591.6 -22.22 39.9 Sunmow Holdings Bhd 1.500 15.38 21.0 66.67 350.9 BSL Corp Bhd 0.040 14.29 643.5 -40.83 77.3 Fitters Diversified Bhd 0.040 14.29 40.0 -42.86 93.7 Progressive Impact Corp Bhd 0.085 13.33 1,447.6 -67.31 55.7 Key Asic Bhd 0.090 12.50 14,244.5 38.46 125.4 Minetech Resources Bhd 0.045 12.50 1,710.2 -18.18 68.7 Sunsuria Bhd 0.525 11.70 24,268.8 59.09 470.4 Paragon Globe Bhd 0.250 11.11 2,342.1 38.89 186.7 Data as compiled on Aug 10, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) EA Holdings Bhd 0.005 -50.00 5,901.6 -66.67 32.3 AT Systematization Bhd 0.010 -33.33 863.5 -33.33 67.9 Handal Energy Bhd 0.215 -18.87 55193.8 38.71 57.3 Zelan Bhd 0.025 -16.67 90.0 -64.29 21.1 Ta Win Holdings BHD 0.035 -12.50 165.1 -36.36 120.2 Ark Resources Holdings Bhd 0.385 -9.41 113.6 35.09 26.8 Sentoria Group Bhd 0.055 -8.33 4,768.0 -38.89 33.7 Oversea Enterprise Bhd 0.060 -7.69 866.3 -24.21 76.0 Pan Malaysia Holdings Bhd 0.060 -7.69 3,039.2 -14.29 55.7 Thriven Global Bhd 0.120 -7.69 390.1 26.32 65.6 ES Ceramics Technology Bhd 0.255 -7.27 15,118.5 15.91 135.4 Jade Marvel Group Bhd 0.195 -7.14 40,464.0 -37.10 84.8 Globetronics Technology BHD 1.310 -7.09 8,091.4 13.96 879.1 OCR Group Bhd 0.070 -6.67 6.0 -30.00 86.8 TCS Group Holdings Bhd 0.220 -6.38 2,721.8 -6.38 85.8 Meridian Bhd 0.075 -6.25 17.5 -37.50 17.0 Spring Art Holdings Bhd 0.150 -6.25 350.0 -16.67 62.4 Hhrg Bhd 0.305 -6.15 3,962.9 -35.79 262.5 Euro Holdings Bhd 0.080 -5.88 84.5 -33.33 85.1 Destini Bhd 0.080 -5.88 1,469.6 0.00 133.1 Data as compiled on Aug 10, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) BLD Plantation Bhd 10.76 -0.340 4.6 4.87 1,006.1 Hong Leong Bank Bhd 19.86 -0.240 288.6 -3.40 43,050.9 Heineken Malaysia Bhd 25.96 -0.220 135.4 3.02 7,842.5 Hong Leong Financial Group 18.58 -0.200 132.1 -0.11 21,278.6 Kuala Lumpur Kepong Bhd 23.18 -0.200 750.6 3.67 24,998.1 Carlsberg Brewery Malaysia 20.40 -0.140 275.4 -10.84 6,237.3 Petronas Gas Bhd 17.22 -0.120 311.4 0.58 34,073.8 Rapid Synergy Bhd 22.56 -0.120 48.3 41.35 2,411.6 Globetronics Technology 1.31 -0.100 8,091.4 13.96 879.1 Chin Hin Group Bhd 4.25 -0.080 245.8 31.58 7,520.0 IOI Corp Bhd 4.09 -0.080 2,265.7 0.99 25,373.1 Pertama Digital BHD 3.06 -0.080 1,853.3 73.86 1,340.9 Hong Leong Industries Bhd 8.92 -0.070 17.7 -3.04 2,849.7 Kluang Rubber Co Malaya BHD 3.81 -0.070 5.0 -3.79 236.9 Telekom Malaysia Bhd 5.05 -0.070 2,076.0 -6.48 19,301.0 Transocean Holdings BHD 1.96 -0.070 9.2 2.08 127.6 UMS Holdings BHD 1.76 -0.070 2.0 -11.09 71.6 LPI Capital Bhd 11.80 -0.060 40.2 -6.65 4700.9 RHB Bank Bhd 5.65 -0.060 4,079.9 -2.42 24,217.9 Sime Darby Plantation Bhd 4.50 -0.060 2,710.3 -3.23 31,120.7 Data as compiled on Aug 10, 2023 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Sunmow Holdings Bhd 1.5 0.2 21.0 66.67 350.91 PIE Industrial BHD 2.94 0.15 1,030.7 13.77 1129.1 Pentamaster Corp Bhd 5.53 0.130 1,727.3 24.83 3,933.6 MR DIY Group M Bhd 1.55 0.12 53,599.4 -22.5 14623.3 JcbNext Bhd 1.5 0.100 10.1 17.19 198.0 Tenaga Nasional Bhd 9.73 0.090 5,352.3 1.04 56,310.7 Uchi Technologies Bhd 3.54 0.090 314.4 9.92 1,615.9 UMW Holdings Bhd 4.28 0.090 2,768.3 23.34 5,000.3 Gas Malaysia Bhd 3.08 0.080 1,425.2 -5.52 3,954.7 Teck Guan Perdana BHD 1.69 0.080 1.0 -4.52 67.8 UWC BHD 3.38 0.08 683.8 -15.92 3723.6 YNH Property Bhd 5.08 0.070 108.0 20.09 2,684.7 Ajinomoto Malaysia Bhd 16.4 0.06 10.0 25.38 997.1 Allianz Malaysia Bhd 15.2 0.060 5.3 7.34 2,705.1 Bursa Malaysia Bhd 6.87 0.06 1,332.2 3.31 5559.9 IHH Healthcare Bhd 6 0.06 2,349.2 -1.92 52841.9 Imaspro Corp Bhd 4.95 0.06 351.3 -15.38 396 Panasonic Manufacturing 20.06 0.060 2.1 -12.40 1,218.6 Sunsuria Bhd 0.525 0.055 24,268.8 59.09 470.4 Malaysia Airports Holdings 6.95 0.050 3,987.0 5.95 11,596.5 Data as compiled on Aug 10, 2023 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 35,123.36 -191.13 -0.54 S&P 500 * 4,467.71 -31.67 -0.70 NASDAQ 100 * 15,101.71 -171.34 -1.12 FTSE 100 * 7,587.30 2.49 0.03 AUSTRALIA 7,357.39 19.44 0.26 CHINA 3,254.56 10.07 0.31 HONG KONG 19,248.26 2.23 0.01 INDIA 65,688.18 -307.63 -0.47 INDONESIA 6,893.28 18.16 0.26 JAPAN 32,473.65 269.32 0.84 KOREA 2,601.56 -3.56 -0.14 PHILIPPINES 6,449.66 -80.79 -1.24 SINGAPORE 3,322.93 9.14 0.28 TAIWAN 16,634.70 -236.24 -1.40 THAILAND 1,533.41 5.11 0.33 VIETNAM 1,220.61 -13.38 -1.08 Data as compiled on Aug 10, 2023 * Based on the previous days’ closing Source: Bloomberg CPO RM 3,728.00-43.00 OIL US$ 87.30-0.25 RM/USD 4.5705 RM/SGD 3.3960 RM/AUD 2.9978 RM/GBP 5.8318 RM/EUR 5.0372