The Edge - 23 April 2024 - Flip eBook Pages 1-26 (2024)

HOME: Malaysian govt should announce clear revenue target in tax reform, says World Bank p3 Malaysia announces largest integrated circuit design park in SEA, attracts SoftBank’s ARM, Phison p6 Businessman Lim Kok Boon ordered to pay civil penalty of RM1 mil and RM142,500 to SC in disgorgement gain p11 WORLD: ‘Overdue’ pullback in US stocks to test dip-buyers’ resolve p17 Thailand pitches to host Formula One race to bolster tourism p21 CEOMorningBrief TUESDAY, APRIL 23, 2024 ISSUE 752/2024 theedgemalaysia.com AIRASIA AMONG BIDDERS FOR SRI LANKA’S NATIONAL CARRIER p7 Sapura Energy sells entire 50% stake in SapuraOMV for US$705 mil to TotalEnergies Report on Page 4

TUESDAY APRIL 23, 2024 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 to contact editors: [emailprotected] to advertise: [emailprotected] 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 [emailprotected] Anwar sets up policy advisory committee to PM World Bank suggests Malaysia set up independent fiscal council to monitor fiscal matters KUALA LUMPUR (April 22): Prime Minister Datuk Seri Anwar Ibrahim has formed the Policy Advisory Committee to the Prime Minister to provide counsel on matters concerning national development and economic resilience in line with the Madani Economy. The Prime Minister’s Office (PMO), in a statement on Monday, announced that Tan Sri Mohd Hassan Marican will chair the committee, adding that members will include Datuk Ahmad Fuad Md Ali, Professor Dr Yeah Kim Leng, and Dr Nungsari Ahmad Radhi. The establishment of this committee follows the conclusion of the Advisory Committee to the Finance Minister (ACFIN) in February 2024, which was also chaired by Tan Sri Mohd Hassan Marican. “The recommendations put forth by ACFIN have been duly considered, and some are currently in the implementation process,” it said. The PMO added that the appointed committee members will not receive any remuneration from the government. KUALA LUMPUR (April 22): The World Bank has suggested that the Malaysian government establish an independent fiscal council to monitor compliance with the Public Finance and Fiscal Responsibility Act (PFFRA) and support fiscal policy planning. Dr Apurva Sanghi, the World Bank’s lead economist for Malaysia, noted that while the PFFRA currently mandates a Fiscal Policy Committee (FPC) to advise the Cabinet on fiscal policy matters, the FPC’s composition of Cabinet members may limit its independence. “The PFFRA mandates a fiscal policy committee, which is good, but it is not independent. This may limit the independence of the committee,” he said during a media briefing on the World Bank’s April 2024 Malaysia Economic Monitor report entitled ‘Bending Bamboo Shoots: Strengthening Foundational Skills’. The FPC’s current composition, according to the PFFRA, includes the prime minister, the deputy prime minister, the finance minister, the economy minister, the chief secretary to the government, the secretary general (secgen) of the Treasury, the sec-gen of the Ministry of Economy, the governor of Bank Negara Malaysia, and two additional members to be appointed by the committee with “standing and experience in fiscal or public finance”. Bernama HOME BY LUQMAN AMIN & IZZUL IKRAM theedgemalaysia.com Under the enactment of the PFFRA, the formulation of fiscal policy should adhere to the principles of accountability, responsibility, transparency, and intergenerational equity, Apurva noted. He suggests that the government, at the very least, establish an independent, permanent technical secretary to the fiscal committee that monitors compliance of the PFFRA and prepares independent macro projections. Furthermore, Apurva highlighted that the PFFRA can be further strengthened by better streamlining of fiscal policies, supported with the introduction of a more effective escape clause — to be exercised in extraordinary situations similar to the Covid-19 pandemic. “Rules on development expenditure and [financial] guarantees are to be complied with annually, while rules on the fiscal balance and debt are to be complied with in the medium term — which is three to five years,” he said. Given the variables’ interaction with one another, Apurva suggests that “harmonising the compliance period of all these rules would be more effective on an annual basis”. On the introduction of the escape clause, Apurva emphasised its importance in providing leeway to diverge from thresholds set in the act in situations of unexpected crises, albeit in a guided and established manner. “The PFFRA could include escape clauses to be triggered by shocks and automatic correction mechanisms in case of deviations or non-compliance with the fiscal rule targets,” he said. “We don’t know what might happen in the future, but we introduce this clause that provides flexibility to deviate from the fiscal rules under extenuating circ*mstances,” Apurva added. He pointed out that one of the issues with the PFFRA’s current escape clause, or “temporary deviation” under Section 26 of the Act, is its ambiguity over what could trigger it, the permitted size of deviation, and the trajectory to resume the rules once the crisis is over. LOW YEN YEING/THE EDGE

TUESDAY APRIL 23, 2024 3 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (April 22): The World Bank has kept its 2024 economic growth outlook for Malaysia at 4.3%, though it sees a potential upside coming from higher oil prices due to the ongoing conflict in the Middle East. The 4.3% gross domestic product (GDP) growth in 2024 will be mainly driven by private consumption, according to World Bank lead economist for Malaysia Dr Apurva Sanghi. Malaysia’s economy grew by 3.7% in 2023, which was also mainly supported by strong private consumption. “It is worth noting that most of this growth will be driven by domestic demand and not investment. In fact, as a share of GDP, 3.4% will come from private consumption,” he told a media briefing during the release of the World Bank’s April 2024 Malaysia Economic Monitor report ‘Bending Bamboo Shoots: Strengthening Foundational Skills’ on Monday. While investments are expected to only constitute 0.9% as a share of GDP, Apurva believes that investments’ contributions will accelerate once the government begins to implement initiatives under the New Industrial Master Plan (NIMP) 2030. World Bank keeps 4.3% forecast for Malaysia’s economic growth, sees higher oil prices a possible upside KUALA LUMPUR (April 22): The Malaysian government should announce how much revenue it is targeting from its reforms to avoid a patchwork approach to taxes, according to the World Bank. A clear target would allow the government to undertake adequate, well-timed, and well-sequenced tax policy, said World Bank lead economist for Malaysia Dr Apurva Sanghi. Malaysia has been under-collecting taxes and the government needs to raise more revenue, he said. “The only point we are making is that it’s important to publicly announce a revenue target,” Apurva said during a media briefing on the World Bank’s April 2024 Malaysia Economic Monitor report titled “Bending Bamboo Shoots: Strengthening Foundational Skills”. Malaysia has been trying to shrink a long-running fiscal deficit that stretches back to the 1998 Asian Financial Crisis. Most recently, the government has introduced a slew of measures ranging from trimming subsidies to imposing additional taxes in a bid to fix its weakened finances. To soften the blow on cost of living, the government has pledged to dish out cash and other aid. This year, the government is targeting to narrow its budget gap as a proportion of economic output to 4.3% from 5% last year. The government’s recent efforts to widen the tax base — in the form of the capital gains tax and expanded services tax — are insufficient at addressing the revenue inadequacy even as they are a step in the right direction, Apurva said. A defined target would also allow the government to better communicate its tax reform decisions with the public and the industry, as it provides perspective to how much additional revenue has to be raised, Apurva stressed. “The question is how much more?” Apurva noted. “What should the target be, should it be from 12.6% to 13% or 14%?” Malaysian govt should announce clear revenue target in tax reform, says World Bank BY IZZUL IKRAM & LUQMAN AMIN theedgemalaysia.com BY IZZUL IKRAM & LUQMAN AMIN theedgemalaysia.com And rising oil prices are a potential upside to the World Bank’s forecast. “The upside risks, one of them is in fact higher oil prices — which is actually materialising. If you look at the situation in the Middle East as tragic as it is, oil prices are going up and that from a pure fiscal sense is good for Malaysia as a commodity exporter,” said Apurva. “The caveat is that if oil prices — the upside risk — continue to materialise, that could pose a downside risk because it could delay the implementation of subsidy rationalisation,” he said. “It’s always more difficult to retarget or rationalise subsidies when commodity prices are high,” he added. At the time of writing, Brent, the global benchmark for crude oil, was down US$1.37 or 1.57% at US$85.92 per barrel. Previously, economists raised concerns over a closure of the Strait of Hormuz, the world’s most important oil chokepoint, which would potentially result in supply shortages. In 2022, about 21% of the world’s petroleum liquid consumption flowed through the strait. Tax collection, as a percentage of gross domestic product (GDP), is projected to rise to 12.8% in 2024 from 12.6% in 2023, he noted. That compares to the regional average of 25%. “When you don’t set a target you don’t know where you’re going, there are many roads to take,” he noted. “So it’s very important to know where you’re going.” World Bank senior economist Chong Yew Keat highlighted at the same event that setting revenue targets is a common practice among developed economies whereby they are set based on the country’s structural spending. For example, an ageing population would mean related spending such as healthcare will rise as a percentage of GDP, he noted. “This will ensure that the government takes a longer view and ensures that the increase in revenue is adequate and also allows for tax policy to be more well-timed and better sequenced over a long period of time,” he added. Malaysia’s low tax capacity Federal government revenue, percentage of GDP (%) Tax revenue Non-tax revenue Total revenue 12.6 12.4 17.3 15.6 0 5 10 15 20 25 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e*2024f* Note: e - MOF estimate; f - MOF forecast Source: World Bank staff calculations based on MOF data. SHAHRILL BASRI/THE EDGE Dr Apurva Sanghi

TUESDAY APRIL 23, 2024 4 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (April 22): Sapura Energy Bhd is selling its remaining 50% stake in SapuraOMV Upstream Sdn Bhd, an exploration and production (E&P) unit it bought in 2014, to TotalEnergies Holdings SAS for US$705.3 million (RM3.37 billion) — comprising US$530.3 million cash and US$175 million relief on debt obligations. Sapura Energy bought the E&P unit for US$898 million back in 2014 from Newfield Exploration Co, before selling half its stake to OMV AG in 2018 for up to US$975 million. The price tag of its remaining 50% stake is US$198 million less than the US$903 million that TotalEnergies is paying to get the other 50% stake from OMV. With the sale, the French oil major will fully own SapuraOMV. It was previously reported that Sapura Energy was looking for US$1.2 billion for the stake. In a statement, Sapura Energy said the US$175 million obligation is in respect of a financing facility extended by a unit of OMV AG to SapuraOMV, “in connection with the share subscription and restructuring exercise” among Sapura Energy, OMV, and SapuraOMV on Jan 31, 2019. The proposed divestment will result in a net gain on disposal of about RM793 million upon completion, Sapura Energy added. It is expecting the sale to be concluded “no later than” the second half of 2025, saying the two parties are “committed to expediting” the transaction’s completion by end-2024. The price secured by the company is “fair and equitable”, group chief executive officer Datuk Mohd Anuar Taib said. “This portfolio rationalisation marks our strategic shift away from the E&P business, as we enhance our core capabilities to deliver innovative solutions to the dynamic energy industry,” he said. With the E&P exit, Sapura Energy still has an order book of RM6.6 billion from its other segments, namely engineering and construction, drilling, and operations and maintenance, the company added. Sapura Energy is exiting the E&P business at a time when oil prices face mixed signals, including geopolitical tensions in the Middle East that put supply at risk, while the demand side is clouded by concerns of a slowing global economy. The upstream services company’s E&P ambition was driven by its former CEO and president Tan Sri Shahril Shamsuddin, which culminated in the acquisition of the upstream business in 2014. SapuraOMV’s assets include operating interests in Blocks SK408 (40%) and SK310 (30%) offshore Sarawak, both of which produced an average of 30,000 barrels of oil equivalent per day in the financial year ended Jan 31, 2023 (FY2023) based on annual report figures. Within SK408, the Jerun gas field is on track for start-up in the second half of 2024, Sapura Energy said in its statement. “SapuraOMV also holds exploration licences across strategic regions, including Malaysia, Australia, New Zealand, and Mexico,” it added. The cash portion of US$530.3 million plus debt relief of US$175 million would provide temporary relief for Sapura Energy, which is in the midst of developing a regularisation plan to address its Practice Note 17 status. As at end-January, Sapura Energy had cash of RM1.45 billion on current borrowings of RM10.98 billion, and current trade and payables of RM5.5 billion. Accumulated loss amounted to RM17.31 billion, which resulted in a shareholders’ deficit of RM4.19 billion, up from RM2.9 billion a year before. The group is in the midst of coming up with a regularisation plan to address its balance sheet position. It has been given until June 10 by the courts to restrain any BY ADAM AZIZ theedgemalaysia.com Sapura Energy sells entire 50% stake in SapuraOMV for US$705 mil to TotalEnergies legal action by creditors, including local vendors and those for its RM10.3 billion multi-currency financing facilities. At least 75% of these creditors have provided requisite approval-in-principle for its proposed debt restructuring scheme, back in December last year. Shareholders of Sapura Energy include Permodalan Nasional Bhd via Amanah Saham Nasional Bhd (40.73%). Brothers Capital Sdn Bhd, linked to Shahril and his brother Datuk Shahriman Shamsuddin, owns a 12.94% indirect stake in the listed entity. Shahril also owns a 1.09% direct stake in Sapura Energy. Aside from SapuraOMV, Sapura Energy’s other assets include fabrication yards in Lumut, Perak (273 acres or 110.48 hectares), Labuan (88 acres), and Teluk Kalong, Terengganu (20 acres). It has five derrick lay vessels, six pipelay vessels, one subsea construction vessel, two anchor handling tug supply vessels, and other offshore support vessels. Sapura Energy also has five semi-tender rigs and six tender assist rigs, its official website showed. Sapura Energy, which still has a vast presence across the local upstream oil and gas ecosystem, has been trading at between four sen and six sen over the last 52 weeks. The group remained in the red in FY2024 as all segments bled, with a fullyear net loss of RM728.4 million on revenue of RM1.1 billion. During the year, financing costs totalled RM805.51 million, against net operating cash flow of RM311.29 million.

TUESDAY APRIL 23, 2024 5 THEEDGE CEO MORNING BRIEF trust who do you trust to tell the truth ? P r o v i d i n g y o u w i t h i n s i g h t s t o make better decisions P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 M A L AYS I A BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1506 THE WEEK OF JANUARY 15 — JANUARY 21, 2024 THE STATE OF THE NATION 12 Challenges remain for China’s economy after disappointments in 2023 CORPORATE 20 JB needs LRT system to disperse traffi c coming in from Singapore via the RTS, says project proponent TONG’S PORTFOLIO 18 Malaysia’s 5G is now one of the world’s best, thanks to the unconventional SWN 1 Contrary to what many had anticipated, the new tax has a wider scope and broad defi nitions. Many are still grappling with its implications while much clarifi cation is needed on its application. COVER STORY I 61 to 63 COVER STORY 2 64 to 69 afi zi: Padu long overdue, not an verzealous data collection exercise 16 Edaran in the cross hairs B Y JOSE BARROCK 21 Investor Yu suffers hefty paper loss after y rapid fall of p p counters p B Y I NTAN FAR H A N A Z AINUL 16 Perplexing twists to p takeover offer for KUB B Y LEE WENG KHUEN CORPORATE CORPORATE CORPORATE Capital gains tax: at many had anticipated More than expected P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 M A L AYS I A BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1512 THE WEEK OF FEBRUARY 26 — MARCH 3, 2024 ZAHID IZZANI/THE EDGE YNH Property Bhd’s RM1.1 billion investment in numerous property development joint ventures over the years has drawn much public scrutiny. Of particular interest is one involving a fi ve-acre parcel in Sri Hartamas. YNH justifi es the JVs and clarifi es why some of the land is under a Registrar’s caveat. COVER STORY 58 to 60 CORPORATE 10 Consolidation of TPG, Hong Leong Group and TE Asia Healthcare’s hospitals in the works, say sources BY JENNY NG AND VASA N T H A G A N E SA N NEWSBREAK CORPORATE 12 Five shortlisted for possible sale of Cement Industries BY I N TA N FAR H A N A Z AI N U L AND JOSE BARROCK NEWSBREAK CORPORATE 10 Khazanah, EPF and GIP forming consortium to run MAHB BY JOSE BARROCK NEWSBREAK CORPORATE 12 DNeX, HeiTech Padu, Theta Edge shortlisted for NIISe project BY JOSE BARROCK NEWSBREAK Th e curious case of YNH and its JVs THE STATE OF THE NATION 14 Watching the ringgit factor in stronger-thanexpected exports rebound TECH 28 Semiconductor veteran turned VC raising US$200 mil to back IPO-able chip fi rms TONG’S PORTFOLIO 18 Is residential property in Malaysia a good investment? Disclaimer: A copy of the Master Prospectus (MP) dated 19 December 2022 has been registered with the Securities Commission Malaysia (SC), who takes no responsibility for its contents. 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Our Consistency Can Be Your Advantage Stay invested over the long term. A consistent strategy has allowed us to consistently outperform the benchmark over the past decade. *Fund performance is calculated based on NAV to NAV and assumes reinvestment of distributions. The Fund was launched on 23 April 2007. #Average Returns of the funds in Peer Group under Lipper Classification “Equity Malaysia” Non-Islamic. There are total of 67 funds under this category. Source: Lipper as at 31 December 2023 Areca equityTRUST Fund *Fund Performance #Average Returns of Peer Group Areca equityTRUST Fund Best Fund Over 5 Years Best Fund Over 10 Years Equity Malaysia Refinitiv Lipper Fund Awards Malaysia 2023 Winner 80%26% 171%35% 477% 127% Explore how to diversify your portfolio with our Private Wealth Manager today. ARECA CAPITAL SDN BHD 200601021087 (740840-D) www.arecacapital.com 2 Th e yet-to-be-developed land in Sri Hartamas that is subject to a disposal to the Sunway Group P E N I NS U L AR MAL AYSIA RM7.00 SABAH & SAR AWAK RM8.00 ISSN 1675-1205 PP 8409/03/2013(031809) MCI (P) 051/11/2023 MA LAYSIA BUSINESS & INVESTMENT WEEKLY www.theedgemalaysia.com 1501 THE WEEK OF DECEMBER 4 — DECEMBER 10, 2023 CORPORATE 18 Good chance of EPF’s 2023 dividend beating last year’s 5.35% CORPORATE 20 Mavcom was shocked to see closure of MYAirline TONG’S PORTFOLIO 16 Finally, we are investing again — added six stocks with high, resilient dividend yields 123RF.COM CORPORATE 12 Highway concessionaires want to take charge of MLFF system implementation BY M SHAN M UG AM AND I N TA N FAR H A N A Z AINUL CORPORATE 12 Suria Cap to lease out Sapangar Bay Container Port to DP World BY JOSE BARROCK NEWSBREAK NEWSBREAK For distant goals and close friends. THE NEW CAYENNE. FURTHER TOGETHER. The sports car with room for family, friends and countless shared adventures. With space for up to five people, experience Porsche performance every day – both on- and off-road. Find out more. 12 TIME TO ACT, REAL ESTATE MATTERS 148-PAGE SPECIAL PULLOUT INSIDE FREE! with this issue of Th e Edge PUTRAJAYA Th e unity government spent its fi rst year fending off attempts to topple it, but its grip on Putrajaya appears secure now. As it enters its second year in power, will it walk the talk on the major reforms to restructure the economy so that Malaysia is not stuck in the middle-income trap, or will it be business as usual? COVER STORY 76 to 80 the edge | the best selling w e e k ly newsP a Pe r.

TUESDAY APRIL 23, 2024 6 THEEDGE CEO MORNING BRIEF HOME KUALA LUMPUR (April 22): The Selangor state government, through its digital economy arm the Selangor Information Technology and Digital Economy Corp (Sidec), will lead the establishment of an integrated circuit (IC) design hub in Puchong, touted to be the largest in Southeast Asia. The project — in collaboration with the federal government, international semiconductor firms and venture capitalists — is a strategic move to position Malaysia as a potential powerhouse in the global IC design industry. Sidec chief executive officer Yong Kai Ping said Malaysia must quickly seize opportunities in chip design to move up the semiconductor value chain as competition intensifies. “The IC Design Park will elevate Malaysia closer to the front-end IC design segment from the back-end process of packaging and testing,” he said in a statement on Monday. The proposed IC Design Park, poised to begin operations by July 2024, has already secured the commitment of four partner companies, including ARM Ltd, Phison Malaysia, SkyeChip Sdn Bhd and Shenzhen Semiconductor Industry Association. ARM, a subsidiary of the Japanese conglomerate SoftBank, is a notable name in the global semiconductor industry as it specialises in providing intellectual property (IP) cores and related technologies for processors. It licenses its designs to over 1,000 global partners like Apple, Microsoft and Samsung. Phison Malaysia, established in 2000 by Datuk Pua Khein-Seng, who is famous for inventing the world’s first single-chip USB flash drive or pen drive, is the world’s largest independent provider of NAND Flash controllers and comprehensive storage solutions. The company plays a critical role in supplying essential technology for data storage across both consumer and enterprise-level products, according to Sidec. SkyeChip, founded in 2019, specialises in the development of proprietary silicon IP and is already making a name for itself Malaysia announces largest integrated circuit design park in SEA, attracts SoftBank’s ARM, Phison in artificial intelligence and high-performance computing IC solutions. The Shenzhen Semiconductor Industry Association, meanwhile, boasts a membership of 587 semiconductor companies operating in China. It offers a comprehensive suite of support services to the semiconductor industry’s ecosystem such as research institutions and universities, extensive supply chain management, financial services and intellectual property management. Phison to invest RM100 million to set up start-up company in Malaysia Separately, Pua announced that the Taiwan-based NAND storage solutions provider Phison Electronics Corp is investing RM100 million to set up a start-up company called MaiStorage in Selangor, and plans to move over RM1 billion worth of matured technology back to his homeland. Two of Phison’s five co-founders, including Pua, are from Malaysia. Pua said Phison will collaborate with Mimos Bhd to grow Malaysia’s technology industry, hoping to groom 300-500 NAND storage talents within 18 months, creating high-paying jobs for the country. “We are willing to offer higher-than-industry salaries to these underappreciated talents, more than RM6,000 a month for example, and fresh graduate’s starting pay will be RM8,000 with additional bonus,” he was reported as saying at the KL20 Summit 2024 on Monday. BY EMIR ZAINUL & CHESTER TAY theedgemalaysia.com KUALA LUMPUR (April 22): Economy Minister Mohd Rafizi Ramli on Monday announced a slew of incentives for venture capital (VC) firms as well as global technology companies to set up shop in Malaysia, including exemptions and subsidies for rents and employment passes, alongside concessionary tax rates for corporate profits, as part of the ministry’s efforts to turn the country into one of the top 20 start-up ecosystems in the world by 2030. Dubbed the KL20 Action Plan, Rafizi said the new initiatives set the pathway for Malaysia to be the choice destination for early-stage and growth capital, the centre for world-class entrepreneurs and skilled talent, and home to innovative start-ups looking to set up, grow, and scale. “Malaysia is a microcosm and gateway to the East. KL20 represents our ambition to bring Malaysia to [be one of] the top 20 start-up ecosystems in the world. Within this concept is an emphaRafizi launches incentive drive for VC firms, tech giants to set up shop as M’sia aims to be among top 20 start-up ecosystems BY EMIR ZAINUL theedgemarkets.com the chasm and scale to other markets,” Rafizi said. Malaysia also aims to attract global unicorns via the Unicorn Golden Pass, so that high-skilled and high-value jobs are created, besides developing a pipeline of future entrepreneurs and senior leaders in the technology industry. Under this programme, incentives offered include exempted fees for employment passes for senior management, subsidised rental, concessionary tax rates for corporate profits, relocation services, and a start-up concierge that handles the backroom registration at the start. To enlarge the pool of high-skilled talent within the country, the Ministry of Economy is also introducing a multi-tier employment pass programme under the Innovation Pass that gives tailor-made benefits to founders, senior management, high-skilled talent, and general talent in tech. sis on pragmatism and action,” he said during his speech at the KL20 Summit 2024 here on Monday. “The KL20 Action Plan outlines new initiatives that will accelerate the critical areas of a start-up ecosystem — capital, talent, and the quality of start-ups,” Rafizi added. For instance, the VC Golden Pass, which aims to attract VC firms with venture-sourcing sophistication and a global reach to make Malaysia its home, offers incentives including funding access opportunities, subsidised office spaces, expedited licence registrations, and exempted fees for employment passes. “Our hope is that with more international sophisticated VCs in Malaysia, innovative start-ups within the country will have access to more funding, network, and mentorship that will help them cross CONTINUES ON PAGE 7

TUESDAY APRIL 23, 2024 7 THEEDGE CEO MORNING BRIEF HOME AirAsia among bidders for Sri Lanka’s national carrier BY UDITHA JAYASINGHE Reuters In fact, the KL20 Summit 2024, spearheaded by the Ministry of Economy, already saw the signing of letters of intent by 12 global VC firms to set up new offices in Kuala Lumpur for the first time. They include London-based Nordstar and GP Bullhound, Singapore-based K3 Ventures, China-based HOPU Investments, and New Yorkbased Lever VC. Each of these entities manages an average asset under management of US$1 billion (RM4.79 billion). Besides that, the summit also saw the commitment of high-tech companies to establishing offices, research and development facilities, and regional headquarters in Kuala Lumpur, to serve the Asian and Southeast Asian markets. They include Ginkgo Biosecurity, which is looking to establish biosecurity infrastructure in Asean, Seoul-based chemical business company OCI Holdings, which is setting up its Asean-based headquarters in Kuala Lumpur, and digital asset exchange Fasset that will be establishing its office in Kuala Lumpur. Khazanah to launch RM1 bil fund to invest in local start-ups Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim during his keynote address announced that Khazanah Nasional Bhd will launch a National Fundof-Funds, with an initial RM1 billion allocation to invest in innovative highgrowth Malaysian companies. On top of that, Anwar said Khazanah, together with Retirement Fund Inc or Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and BlueChip Venture Capital, a Malaysian VC fund dedicated to the semiconductor industry, will invest up to RM3 billion in the Southeast Asian and Malaysian ecosystems under the Asean Investment Initiative. The capital commitment for startups is aimed at keeping start-ups alive and get to a point of profitability and growth. This is also aimed at helping build the pipeline for more start-ups to thrive, and produce a more dynamic economy to move up the value chain. Furthermore, Anwar unveiled the plan to build the largest integrated circuit (IC) design park in Southeast Asia by the Selangor Information Technology and Digital Economy Corporation (Sidec), with British semiconductor and software design company Arm licensing its technology to the IC design park. The proposed IC design park, Anwar said, is part of Malaysia’s efforts to move beyond back-end chip assembly and testing, and into high-value frontend design work. FROM PAGE 6 KUALA LUMPUR (April 22): Norges Bank, which manages Norway’s government pension fund, has emerged as a substantial shareholder in engineering precision parts manufacturer CPE Technology Bhd with a 5.45% stake. According to CPE’s bourse filing, Norges Bank through Citigroup Nominees (Asing) Sdn Bhd bought 3.5 million shares or a 0.52% stake in CPE on April 17. The latest share purchase pushed the retirement fund’s shareholding beyond the 5% threshold necessary to be deemed a substantial shareholder. The purchase raised its shareholding in the company to 36.6 million shares or a 5.45% direct stake. The filing with the stock exchange did not reveal the purchase price. However, based on the company’s closing price of RM1.30 on April 17, a backof-the-envelope calculation indicates that the block of shares was valued at about RM4.55 million. Norges Bank is currently CPE’s fourth largest shareholder, behind CPE executive director and chief executive officer Lee Chen Yeong with a 32.5% stake, non-independent non-executive director Foo Ming (19.5%) and executive director Mu Woon Chai (13%). CPE was listed on the Main Market of Bursa Malaysia on Dec 7 last year. It booked a net profit of RM1.49 million in the second quarter ended Dec 31, 2023 (2QFY2024), on the back of RM21.78 million revenue. On a quarter-on-quarter basis, the group’s net profit declined 41.84% from RM2.57 million in 1QFY2024 — due to the one-off listing expense of RM1.23 million — as revenue fell 4.04% from RM22.7 million in the immediate preceding quarter. Shares in CPE closed eight sen or 6.3% lower to RM1.19 on Monday, valuing the group at RM798.86 million. The counter has gained 25.26% year to date. Norges Bank now a substantial shareholder in CPE Tech as it raises stake to 5.45% BY ANIS HAZIM theedgemalaysia.com COLOMBO (April 22): AirAsia is among six bidders for Sri Lanka’s state-run carrier SriLankan Airlines as the island nation looks to reduce losses incurred by government-owned enterprises under a US$2.9 billion (RM13.8 billion) International Monetary Fund (IMF) programme. AirAsia Consulting has submitted a request for qualification from potential investors for the acquisition of shares in SriLankan Airlines Limited, a statement released by Sri Lanka’s finance ministry said. The document also named Dharshaan Elite Investment Holding (Pvt) Ltd, FITS Aviation (Private) Limited, Sherisha Technologies Private Limited, Treasure Republic Guardians Limited and local conglomerate Hayleys PLC as the other bidders. WWW.KLIA2.INFO

tuesday A PRIL 23, 2024 8 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): Nestlé (Malaysia) Bhd is set to adjust prices of selected products in response to the recent surge in global cocoa prices, said chief executive officer Juan Aranols. However, he emphasised that the company aims to keep the price increases minimal, and plans to implement only moderate adjustments for certain products. “The company is cautious about price increases, which can affect customers’ purchasing power. “However, due to the volatility in commodity markets — of course, we will not fully pass on the impact — there may be some price increases that we have to undertake in the next few months,” he told reporters following the launch of the Nestlé Salary For Life 2024 contest here on Monday. According to news reports, the futures prices of cocoa rose by almost 6% last week. Looking ahead, Aranols said Nestlé Malaysia anticipates subdued consumer sentiment this year, due to factors like Nestlé Malaysia to raise prices of selected products as cocoa gets more expensive KUALA LUMPUR (April 22): Axis Real Estate Investment Trust (Axis REIT) has proposed to acquire an industrial complex and open storage yard in Klang for RM351.8 million cash from a unit of Lion Industries Corp Bhd. The REIT’s trustee, RHB Trustees Bhd, has entered into agreements to buy the assets located in the Bukit Raja Industrial Park from Amsteel Mills Sdn Bhd, which is 99%-owned by Lion Industries, according to a bourse filing on Monday. The industrial complex, covering an area of nearly 60 acres and adjoining Axis REIT’s existing property, Axis Facility 2, is being purchased for RM313 million. Meanwhile, the purchase price of the open storage yard, covering an area of 7.13 acres and located across Axis Facility 2, is RM38.8 million. KUALA LUMPUR (April 22): Ancom Nylex Bhd (ANB) has registered a 21.6% year-on-year jump in its net profit for the financial quarter ended Feb 29, 2024 (3QFY2024), attributable to improved margins for its agricultural chemicals and industrial chemicals divisions. The group reported a net profit of RM20.11 million for the quarter, higher than the previous year’s corresponding quarter of RM16.36 million. Revenue was up by 6.8% to RM516.78 million from RM483.95 million. Its agricultural chemicals division reported a higher segmental profit of RM27.6 million from RM19.8 million a year earlier due to increased sales for products with higher profit margins. Meanwhile, its industrial chemicals division’s segmental profit also improved to RM5.6 million from the previous year’s corresponding quarter of RM4.8 million, due to lower cost of sales of its products. However, its investment holding division posted a higher segmental loss of RM5.7 million compared with RM200,000 a year earlier, due to higher operating expenses. The division comprises investment holding, information technology, media and electrical businesses. Looking ahead, the group said the El Nino phenomenon and volatility in global economies could affect its businesses for the rest of the financial year. Nevertheless, it said it will continue to be vigilant in managing the risks as well as to explore more business opportunities. “Barring any unforeseen developments, the group should perform satisfactorily for the remaining of the financial year,” it stated. For the nine-month financial period ended Feb 29, 2024 (9MFY2024), the group reported a 10% increase in its net profit, climbing to RM63.03 million from RM56.95 million in 9MFY2023. Revenue declined 3.6% to RM1.51 billion from RM1.57 billion. Earlier, it proposed a first interim dividend for FY2024 by way of dividend-in-specie to its shareholders on the basis of one treasury share for every 100 ANB shares. The dividend-in-specie was completed on March 1, 2024. Shares of ANB went up by three sen or 2.91% to RM1.06 at Monday’s market close, valuing the group at RM1.07 billion. Axis REIT said the acquisition will be funded by existing bank financing. According to the REIT’s latest financial statement, its cash and bank balances amounted to RM7.79 million, while its bank financing stood at RM1.55 billion at end-2023. On the rationale for the acquisition, Axis REIT said it views the properties as high quality and earnings-accretive with strong recurring rental income. “The proposed acquisition of properties will be accretive to Axis REIT’s distributable income and adds to the portfolio of properties that will benefit the fund in the long term,” it said. The acquisition of the industrial complex, which is slated to be completed by the fourth quarter of 2024, is expected to contribute positively to the REIT’s earnings for the financial year ending Dec 31, 2024. Meanwhile, the open storage yard is expected to contribute to Axis Reit’s rental income by the end of 2025 after vacant possession delivery kicks off at the end of 2025. Lion Industries, in a separate filing, said the proceeds from the sale of the two properties will be used to repay bank borrowings and for working capital requirements. Shares in Axis REIT closed down two sen or 1.08% to RM1.84 on Monday, giving the group a market capitalisation of RM3.22 billion. Lion Industries, meanwhile, rose 1.75% to 29 sen, valuing the company at RM211.9 million. Axis REIT to acquire industrial complex, storage yard in Klang from Lion group Ancom Nylex sees 22% jump in 3Q profit as margin improves by Anis Hazim theedgemalaysia.com by Hee En Qi theedgemalaysia.com Bernama food inflation, driven by international commodity prices. “However, we remain positive and are committed to providing safe, high-quality products that stand out against competitors,” he said. Earlier on, Nestlé Malaysia unveiled the return of the Salary For Life contest, offering RM4 million in cash prizes benefiting 700 Malaysians. Running from May 1 to June 30 this year, the contest offers a grand prize of a monthly RM3,500 Salary For Life for two fortunate Malaysians. Additionally, Nestlé Malaysia will make contributions to 17 charitable organisations associated with the contest finalists.

tuesday A PRIL 23, 2024 9 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): Keyfield International Bhd made a robust debut on the Main Market of Bursa Malaysia on Monday with a closing price of RM1.93, a whopping 114.4% or RM1.03 higher than its initial public offering price (IPO) of 90 sen. The impressive gain was the best maiden day performance of a Main Market IPO stock over the last six years. Prior to Keyfield’s debut, UMediC Group Bhd’s (UMC) maiden day gain of 71% was the best over the last six years, back when the stock was listed in 2019. The best-performing maiden day trading in 2023 was notched by Cape EMS Bhd, which recorded a 66.67% gain. Last year, Cape EMS and Kumpulan Kitacon Bhd were the only two Main Market debutantes that recorded premiums on their maiden day. Kitacon saw a 10.29% premium over its IPO price of 68 sen. In contrast, the other five companies faltered on their Main Market debut last year, including Radium Development Bhd, which saw a 23% decline in its first-day performance against its IPO price of 50 sen and CPE Technology Bhd, which fell 14.49% from its IPO price of RM1.07. Prolintas Infra Business Trust, the first IPO company listed on the Main Market of Bursa Malaysia this year, saw a lukewarm debut as it recorded a 2.11% by Justin Lim theedgemalaysia.com Keyfield is best-performing Main Market IPO stock on maiden day of trading in last six years gain over its IPO price of 95 sen. Keyfield opened at RM1.70 and skyrocketed to RM1.95, before paring some gains and settling at RM1.93. Based on the closing of RM1.93, its market capitalisation expanded to RM1.54 billion. Keyfield was the second-most actively traded counter on the local bourse with 108.82 million shares changing hands. Its trading volume is equivalent to 52.08% of its issued share capital of 208.96 million shares. Keyfield’s maiden-day performance also outperformed the other 10 market debutantes this year. Before this, KJTS Group Bhd’s first-day performance topped the list with an 85.19% gain on its debut after it closed at 50 sen, compared to its IPO price of 27 sen. This was followed by Zantat Holdings Bhd, which recorded a 50% gain in its firstday performance from its IPO price of 25 sen, and HE Group Bhd, which chalked up a 16.07% gain from its IPO price of 28 sen. At the press conference after the successful listing, Keyfield group chief executive officer Datuk Darren Kee Chit Huei said despite tensions in the Middle East, Keyfield’s work orders remain uninterrupted as its vessels predominantly operate in Southeast Asia. “For now, all our revenue is derived from Malaysia, and some of it from the joint development area near Thailand. For now, I think the geopolitical risk in the Middle East does not have any direct impact on us because we operate 100% in this region,” Kee Chit Huei said. “In terms of direct work, there is no cancellation of work orders because all our clients, including Petroliam Nasional Bhd (Petronas) and Shell, run in this region — in Sabah, Sarawak, in Kemaman, Terengganu, as well as in the joint development area near Kelantan and Songkhla in Thailand,” he added. Outlook for accommodation vessels remains favourable on supply shortage, growing demand Specialised in the chartering of accommodation vessels, Keyfield is bullish on its prospects. Kee is still very bullish on the outlook for accommodation vessels, particularly due to a shortage of suitable vessels, coupled with strong issuances of new work orders by relevant oil companies, such as Petronas and other petroleum arrangement contractors. Keyfield International Bhd 0 5 10 15 20 0.5 1.0 1.5 2.0 Vol (mil) RM/sen *RM1.93 RM1.70 *As at market close on Apr 22, 2024 Source: Bloomberg 9am 5pm April 22, 2024 IPO share price: 90 sen Shahrill Basri/ The Edge IPO performance in Bursa Malaysia for 2024 so far Company Board Listing date IPO price (RM) 1st day closing price (RM) Changes (%) one-day KJTS Group Bhd ACE Market Jan 26 0.270 0.500 85.19 Master Tec Group Bhd ACE Market Jan 29 0.390 0.360 -7.69 HE Group Bhd ACE Market Jan 30 0.280 0.325 16.07 TSA Group Bhd ACE Market Feb 2 0.550 0.575 4.55 Wentel Engineering Holdings Bhd ACE Market Feb 6 0.260 0.280 7.69 AGX Group Bhd ACE Market Feb 7 0.350 0.360 2.86 Alpha IVF Group Bhd ACE Market March 22 0.320 0.320 0.00 Prolintas Infra Business Trust Main Market March 25 0.950 0.970 2.11 Zantat Holdings Bhd ACE Market March 27 0.250 0.375 50.00 SBH Marine Holdings Bhd ACE Market Apr 8 0.220 0.255 15.9 Keyfield International Bhd Main Market Apr 20 0.90 1.93 114.44 Source: Bursa Malaysia continues on Page 10

tuesday A PRIL 23, 2024 10 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): HHRG Bhd’s proposed purchase of a 51% stake each in two companies that jointly own a parcel of land in Kuala Muda, Kedah — originally owned by the Kedah state government — has drawn the attention of the stock exchange that queried the company for more details. Bursa Malaysia on Monday (April 22) demanded an explanation on the amount of earnest deposit paid and its date of payment, the terms of payment arrangement, and the net profits and net asset value of the companies that HHRG intends to buy the stakes in. It also wants HHRG to quantify the audited net assets and net assets per share of the companies that form the basis of the purchase consideration, among others. HHRG announced its the proposed stake buys in PKB Open Road (SP Circuit) Sdn Bhd (PKBOR) and ORIC Development (SP) Sdn Bhd (ORICD) last week, for RM40 million from Open Road World Sdn Bhd (ORW). They jointly own the 150 acres of land in Kuala Muda. ORW owns 70% of PKBOR, and 100% in ORICD. The remaining shareholdings in PKBOR is 20% held by Permodalan Kedah Bhd and 10% by Jingshi Holdings (M) Sdn Bhd. HHRG, in its reply on Monday (April 22), said it is required to pay an earnest deposit of RM1 million for the acquisition, while it is still finalising the terms of payment arrangement for the entire RM40 million cash consideration. The land fetches an indicative market value of RM96.68 million, based on Rahim & Co International Sdn Bhd’s certificate of valuation dated April 17, 2024. HHRG, formerly known as Heng Huat Resources Group Bhd, also said it has not finalised the development plan for the land involved. HHRG said the acquisition enables it to increase its land bank, in line with its diversification into property development. The group is mainly involved in manufacturing biomass materials, furniture, mattresses and related products. According to HHRG, Datin Chok Chew Lan and Charmaine Goh Min Yee own 33.89% each in the seller, ORW, while Julian Goh Sean Loong and Eugene Goh Jet Shen own 11.11% each; Ng Ying Ying owns a 10% stake. HHRG said the land’s registered owner is Menteri Besar Kedah Incorporated (MBKI), but PKBOR and ORICD are the beneficial owners of the land. The disclosure revealed that PKBOR had, on Jan 9, 2023, bought the land from MBKI for RM24.3 million. On the same day, it disposed of 80 acres of it to ORICD for RM12.96 million. In its announcement last week, HHRG told Bursa Malaysia that a definitive agreement to buy the stakes in PKBOR and ORICD is conditional upon satisfactory Bursa queries HHRG’s RM40mil deal related to land originally owned by Kedah state govt by Chester Tay theedgemalaysia.com due diligence. If the conditions are not satisfied, the acquisition may be terminated and the earnest deposit will be refunded. If the acquisition materialises, HHRG plans to finance it entirely through internally-generated funds. As of Dec 31, 2023 (3QFY2024), HHRG’s cash and cash equivalents stood at RM65.6 million. It had short-term borrowings of RM11.96 million, comprising RM9.55 million bank overdrafts, RM1.73 million term loans and RM671,000 in hire purchase. The group’s long-term borrowings stood at RM25.53 million as at 3QFY2024, consisting of RM24.53 million term loans and RM1 million in hire purchase. For the nine months ended Dec 31, 2023 (9MFY2024), HHRG’s net profit fell 61% to RM6.83 million from RM17.39 million in the previous corresponding period, while revenue declined 22% to RM94.88 million from RM121.04 million. HHRG said its performance for 9MFY2024 was weighed by higher production costs and moderation of sales. “The decline in revenue was due to the softening demand in biomass, furniture and mattresses, both locally and in the export market, especially from the European market,” it said in its quarterly result announcement. HHRG’s largest shareholder is GH Consortium Sdn Bhd with a 30.06% stake, followed by CFamillie Holdings Sdn Bhd with17.8%. The group’s executive chairman Datuk H’ng Choon Seng, who owns a direct 3.8% stake in HHRG, is deemed to have indirect interest in GH Consortium together with Goh Boon Leong, who has a direct 0.2% interest. Another two shareholders, Ch’ng Chen Mong and Tan Poh Cheng, are deemed to have indirect interests in HHRG via CFamillie. The share price of HHRG, which has dropped 67% year to date, closed half sen or 2.4% lower at 20 sen, giving it a market capitalization of RM173.57 million. “We are in this business, and we have been seeing more and more tenders being issued for the requirements of accommodation vessels.” “As we speak today, our vessels are fully chartered out, and we are still looking for suitable vessels to meet our growing work orders,” he said. Given this, the group is looking for more third-party vessels, and at acquiring vessels to meet the growing demand. On top of that, Kee said the current high oil price is benefiting the group, given that the upward trajectory of oil prices will drive increased offshore activities. Just this month, the Brent crude oil price soared above the US$90 (RM430.52) mark per barrel for the first time since October last year, as the conflict in the Middle East escalated. Year to date, oil prices have gained 14%. Keyfield owns 11 accommodation vessels and it also charters out third-party vessels. Of the 11 vessels it owns, three are on long-term tenure (for more than one year), while the remainder are on spot charter, ranging from two months to 10 months. As at end-February, Keyfield’s orderbook stood at RM662.6 million. Its net profit for the fourth quarter ended Dec 31, 2023 (4QFY2023) rose 72.41% to RM22.12 million, compared with RM12.83 million for the same period a year earlier, driven by higher vessel utilisation and charter rates, Keyfield said in an exchange filing. Revenue grew 76.82% year-on-year to RM119.53 million from RM67.6 million. For the full FY2023, Keyfield’s net profit more than doubled to RM105.48 million from RM48.88 million. Revenue jumped 82.24% to RM430.45 million from RM236.2 million. from Page 9

tuesday A PRIL 23, 2024 11 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): Awanbiru Technology Bhd (Awantec) is appealing against Bursa Malaysia Securities’ decision to suspend the trading of its shares, saying the group has demonstrated that its current business operations are viable, sustainable and have growth prospects. The group said the appeal was filed on April 19. “The company had today received a letter from Bursa Securities informing that the appeal against suspension will be escalated to the relevant regulatory committee of Bursa Securities for deliberation and decision,” Awantec said in a bourse filing on Monday. “Notwithstanding the appeal against the suspension, the trading in the securities of Awantec will be suspended with effect from April 26,” it added. Awantec announced the suspension last week after it failed to submit its regularisation plan to the regulators for approval within the stipulated time frame that ended on April 13. The group said it would face the risk of delisting if no appeal was submitted within five market days from the date of notification of delisting. Prior to the announcement of the suspension, Awantec said on April 8 that it had applied to the regulators for a waiver from the requirement to submit a regularisation plan, citing recent improvements in financial performance. It added that it had applied to be relieved of its affected issuer status. The group had also requested a six-month extension until Oct 13 to submit the regularisation plan, in case its applications for the waiver and reclassification were not approved. Awantec, formerly known as Prestariang Bhd, was required to submit a regularisation plan after being classified as an affected listed issuer in January 2021, following the termination of its wholly-owned subsidiary Prestariang Systems Sdn Bhd’s membership in the Microsoft Partner Network. The group came under the spotlight recently after it was awarded RM231.55 million by the High Court in a lawsuit against the government over the termination of the RM3.5 billion National Immigration Control System (SKIN) project. The award, however, represented only onethird of its RM733 million claim. The group had decided to appeal the court decision. For the six-month period ended Dec 31, 2023, the group posted a net profit of RM1.19 million compared to a net loss of RM4.31 million a year earlier, as revenue increased 9.7% to RM28.63 million from RM26.1 million. Awantec shares closed half a sen or 2.27% higher at 22.5 sen on Monday, valuing the group at RM177.72 million. Year to date, the counter has lost 17 sen or 2.3%. Read also: Kelington in arbitral proceedings over alleged outstanding payment for construction job Awantec files appeal against trading suspension, says has growth prospects KUALA LUMPUR (April 22):The High Court on Monday ordered businessman Datuk Lim Kok Boon to pay a civil penalty of RM1 million to the Securities Commission for insider trading. Lim, the former chief executive officer of GW Plastics Holdings Bhd, was also ordered by Judge Adlin Abdul Majid to pay another RM142,500, three times the disgorgement of the gain made by his friend Cheah Mean Har, after finding both of them liable for insider trading. Lim is also barred from being appointed as a director of a public listed company for five years. Cheah, meanwhile, was ordered to pay a civil penalty of RM500,000 in addition to another RM142,500 or three times the profits made. Adlin also ordered Lim to pay total cost of RM200,000 while Cheah has to cough up RM30,000 in costs. Adlin however, did not grant an oral application by Lim and Cheah’s counsel of an interim stay of the decision while they file a notice of appeal to the Court of Appeal. “This court would expedite the hearing of the stay once the notice of appeal is filed,” she said. The disgorgement is stipulated in Section 201(5) of the Capital Markets and Services Act 2007 (CMSA), while the civil penalty is imposed under Section 188 of CMSA. Securities Commission counsels objected to the stay of the decision pending appeal, as the SC cannot be stopped from making public this finding by the court. The ad-interim stay was sought by Lim’s counsel Steven Thiru and Cheah’s lawyer Jonathan Gerard. Adlin, in finding the duo liable for insider trading, said the court was satisfied on a balance of probabilities as the court did not believe Lim’s purported claim that his conversation with Cheah on the critical period of Sept 25 to 27, 2012, may not only be the purchase of insurance. The judge also found that Lim was seen to be evading his relationship with Cheah, a single mother and a car dealer during the trial. “There is a lack of transparency as if there was something to hide in [Lim’s] testimony,” the judge said, stressing that Lim was “not forthcoming on his relationship” with Cheah. Besides this, it is not in dispute that the first defendant has direct insider knowlBusinessman Lim Kok Boon ordered to pay civil penalty of RM1 mil and RM142,500 to SC in disgorgement gain edge,” Adlin said. “In my view, the first and second impugned trade [between Sep 25 and 27, 2012] and communication between them was not for the purpose of seeking advice of medical insurance. “It is not likely the trade [of shares] is mere coincidence,” the judge said. Lim was chief executive officer and non-independent executive director of GW Plastics during that critical period of the transaction and Cheah is alleged to have purchased 200,000 GW Plastic shares on Sept 25, 2012 and 150,000 GW Plastic shares two days later. At that time, GW Plastic made an announcement on Sept 28, 2012, that it was suspending trade of its shares, and on Oct 3, 2012, GW Plastic signed an agreement to sell 100% equity interest in GW Plastics and GW Packaging to Scientex for a total cash consideration of RM238.2 million. Prior to this, it was reported that Lim had denied the insider trading allegations following the suit filed by the SC in 2017 adding that the claim was scandalous, frivolous, vexatious and otherwise an abuse of the court process. SC filed the suit in Sept 2017, claiming that Lim had communicated material non-public information to Cheah, who then allegedly purchased GW Plastics shares while in possession of the information. It is understood that the SC may issue a statement on the matter later on Monday. Datuk Lim Chee Wee and Kelvin Seah appeared as counsels for the SC. by Hafiz Yatim theedgemalaysia.com by Hee En Qi theedgemalaysia.com

tuesday A PRIL 23, 2024 12 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): Gadang Holdings Bhd posted a net profit of RM6.47 million for the third quarter ended Feb 29, 2024 (3QFY2024), compared to a net loss of RM4.96 million a year ago, driven by interest accumulation on trade receivables and favourable foreign exchange (forex) translation. The net profit was thw highest since the group recorded RM36.54 million in the second quarter ended Nov 30, 2021(2QFY2022). Earnings per share stood at 0.89 sen versus loss per share of 0.68 sen for 3QFY2023, the builder-cum-property developer said in a bourse filing on Monday. The group’s revenue also climbed by 14% to RM141.15 million for 3QFY2024, compared with RM123.98 million a year earlier, driven by increased contributions from the property division. For the nine-month period ended Feb 29, 2024 (9MFY2024), the group posted a net profit of RM14.1 million, compared to a net loss of RM1.62 million for 9MFY2023, attributed to better sales achieved and higher work progress from development projects. Revenue increased by 13% to RM433.1 million, from RM382.12 million for the same period. Gadang said its existing outstanding order book stood at RM1 billion as of the end of 3QFY2024, which would be able to sustain its operations for the next two years. Looking ahead, the company emphasised its commitment to actively tendering for new projects to replenish its order book, and ensuring the timely execution of ongoing projects within the construction division. On the property development front, the company expects strong performance in the current financial year, supported by unbilled sales of approximately RM250 million. “The utilities division will continue to explore investment opportunities to build its concession asset base with recurring revenue streams. The construction of a 5.9MWac solar photovoltaic energy generating facility located in Tawau, Sabah, is in progress, and is expected to contribute positively to the group’s revenue in FY2025,” it said. The group added that it will continue to actively explore and seek out new business opportunities to expand and strengthen its revenue, ensure the timely completion of ongoing projects, exercise prudence in business dealings, and implement various measures to improve operational efficiency to achieve long-term sustainable growth. Shares in Gadang closed 1.5 sen or 4% higher at 39 sen on Monday, giving the group a market capitalisation of RM280.21 million. Gadang registered highest net profits since 2QFY22 KUALA LUMPUR (April 22): Ongoing uncertainties from the Middle East tensions are expected to bolster oil prices, and investors should continue to buy into the oil and gas (O&G) sector, analysts said. Oil prices may hit as high as US$140 (RM669.62) per barrel if the Israel-Iran conflict intensifies, harking back to the onset of the Russia-Ukraine conflict, RHB Investment Bank said. For now though, oil prices will likely average US$88 this year versus US$82 in 2023, according to the research house’s estimates. “Prices could stay elevated for longer, depending on the magnitude of the event,” it said. At this stage, the disruption to the oil market is “rather manageable”, assuming there is no further escalation between these two countries, RHB noted. Brent, the global benchmark for crude oil, was trading at US$85-US$92 per barrel as Israel and Iran traded drones and missile attacks. The conflict comes on the heels of the Israel-Hamas conflict in Palestine, as well as strikes by Houthi militants against Israel that sparked the so-called Red Sea crisis. Shares in Malaysian O&G firms have outperformed the broader market. The Bursa Malaysia Energy Index, which tracks 22 O&G companies, has gained 19% so far this year. The country’s benchmark index FBM KLCI, meanwhile, is up a little over 7% year-to-date. Among the top 20 listed O&G companies observed by The Edge, Uzma Bhd recorded a surge of over 70% since the beginning of the year, followed by Perdana Petroleum Bhd at 67%, and Dayang Enterprise Holdings Bhd at 59%. The US, meanwhile, have also re-imposed sanctions on Venezuelan oil, though the move is expected to have a minimal impact on the oil market as the country’s oil production was only 0.8 million barrels per day in the first quarter of 2024, RHB noted. Oil prices may spike from Middle East crisis; buy energy stocks — analysts For strategy, RHB highlighted that companies focusing on exploration and production, such as Dialog and Hibiscus Petroleum, would gain from the rising oil prices. The research house also continues to like upstream services firms, which are set to benefit from robust activities and steady charter rates. While oil prices at US$84 per barrel for 2024 are also supportive of upstream investment locally, given the under-investment in the early 2020s, Kenanga Investment Bank flagged that investors should also look at the midstream segment, particularly tank terminals. The market indicates “signs of bottoming out” while the surge in projects related to low-carbon storage offers growth opportunities for tank terminal operators, said Kenanga, which has an ‘overweight’ sector call. Global storage market has experienced resurgence in utilisation and storage day rates in 2023, with Dialog indicating a daily storage rate per cubic meter of S$6.50 (RM22.85) versus 2022’s low of S$5.50, the research house noted. Kenanga’s top picks for the sector are Dialog, Yinson Holdings Bhd, Icon Offshore Bhd, and Keyfield International Bhd, which was listed on Monday. by Syafiqah Salim theedgemalaysia.com by Choy Nyen Yiau theedgemalaysia.com -30 -20 -10 0 10 20 Gadang Holdings Bhd’s quarterly earnings Net profit (RM mil) Revenue (RM mil) Source: Bursa Malaysia FY2023 -300 -200 -100 0 100 200 3Q 4Q 1Q 2Q FY2024 3Q -4.9 -27.7 6.2 1.4 6.5 141.2 123.9 113.9 129.5 162.4

tuesday A PRIL 23, 2024 13 The E dge C E O m o rning brief home news In brie f Iris Corp forms JV to set up offshore company in Sri Lanka KUALA LUMPUR (April 22): Iris Corp Bhd is forming a joint venture with Sri Lankan firm Aitken Spence Plc to establish an offshore company that provides business processes outsourcing services in the Colombo Port City Special Economic Zone in Sri Lanka. In a bourse filing, the group announced that its wholly-owned subsidiary Iris Tech Ventures Sdn Bhd has entered into a shareholders’ agreement with Aitken Spence’s wholly-owned subsidiary Aitken Spence International Pte Ltd. The joint venture will be a 50-50 partnership between the duo, according to the filing, with the total investment of the venture amounting to US$500,000 (RM2.39 million). “The joint venture is expected to pave the way for business collaboration between the parties which is consistent with the objectives of Iris in seeking strategic alliances from time to time for mutual benefits,” Iris Corp stated, as it expects the JV to contribute positively to its consolidated earnings in the future. — by Hee En Qi Unitrade partners with Huawei, JJ-LAPP to offer smart solar systems KUALA LUMPUR (April 22): Building material wholesaler and distributor Unitrade Industries Bhd’s wholly-owned subsidiary Syarikat Logam Unitrade Sdn Bhd has entered into a collaboration agreement with Huawei Technologies (Malaysia) Sdn Bhd and JJ-LAPP (M) Sdn Bhd. Unitrade said in a statement on Monday that the agreement aims to advance solar adoption by pooling the collective expertise, resources and technology to facilitate the purchase and sale of Huawei Digital Power-Smart Photovoltaic (PV) solutions. Under the agreement, Huawei will serve as the technology advisor, while JJ-LAPP will be the authorised value-added partner to promote and sell the smart PV solutions across residential as well as commercial and industrial (C&I) sectors. Meanwhile, Unitrade will act as the project delivery partner in facilitating broader market access. — by Choy Nyen Yiau ITMAX to collaborate with Johor Corp to develop smart city solutions KUALA LUMPUR (April 22): ITMAX System Bhd plans to work with a unit of Johor Corp (JCorp) to explore potential partnerships in developing and deploying smart city and integrated facilities management solutions for township and industrial park developments. ITMAX, through its 65%-owned subsidiary Southmax Sdn Bhd, has signed a memorandum of understanding with JLand Group Sdn Bhd (JLG) to establish the principles and framework for the intended collaboration. They seek to finalise a joint venture agreement before setting up a joint venture company for the partnership, ITMAX said in a bourse filing. ITMAX is a smart city integrated systems and solutions provider while JLG is in the estate and infrastructure business. — by Choy Nyen Yiau Ornapaper proposes to diversify into property business KUALA LUMPUR (April 22): Ornapaper Bhd said it plans to diversify into the property development and property investment business, as it expects this to contribute 25% or more to its future net profit. The group said that while it remained focused on its existing business — corrugated boards and carton boxes, paper-based stationery products and logistics services — it has been actively seeking other business opportunities that could enhance long-term returns to its shareholders. In a bourse filing on Monday, Ornapaper noted that in February, the group had completed the acquisition of two vacant parcels of leasehold land in Melaka Tengah from Faithview Group Development Sdn Bhd for RM30.75 million, cash. “Melaka Tengah is the centre of Melaka’s business district and a hub for property development. Other than the tourism industry, the industrial sector is the main development catalyst and thus, boosts the residential and commercial sectors which are expected to remain stable in terms of existing and incoming supply,” it said. — by Anis Hazim Paragon Globe breaks ground for last phase of Pekan Nenas Industrial Park KUALA LUMPUR (April 22): Paragon Globe Bhd broke ground for the Pekan Sentral Phase 3 and Pekan Nenas Industrial Park Phase 5 in Pekan Nenas, Johor on April 19. The final phases have a combined gross development value of RM92 million and slated for completion by 2026. According to a press statement, Pekan Sentral is the commercial component of Pekan Nenas Industrial Park, an on-going project developed by Paragon Bizhub — the wholly owned subsidiary of Paragon Globe. The phase 3 of Pekan Sentral comprises 48 units of two- and three-storey shop offices with built-ups ranging from 2,926 to 5,815 sq ft. Meanwhile, Phase 5 of Pekan Nenas Industrial Park comprises four units of single-storey detached factories with built-ups ranging from 20,843 to 28,808 Powerwell bags RM22 mil sub-contract for Sg Rasau Water supply scheme project KUALA LUMPUR (April 22): Powerwell Holdings Bhd has secured a RM22.05 million sub-contract to supply a low voltage (LV) switchboard for the first stage of Sg Rasau Water Supply Scheme development in Selangor. The group, via its wholly-owned unit Kejuruteraan Powerwell Sdn Bhd clinched the subcontract work on April 19 from One Ocean Environment Sdn Bhd. The scope of the sub-contract includes the supply of LV switchboards and all necessary materials, labour, plants or machineries, and supervision for the execution and completion of the works. The project is expected to be completed by the end of June 2025. — by Syafiqah Salim sq ft. At the same time, the developer is also providing design and build services to construct two factories for Shimano Components (Malaysia) Sdn Bhd, a subsidiary of the Japanese multinational manufacturing company, in Pekan Nenas Industrial Park. — by Rachel Chew (From left) Paragon Globe senior general manager Tan Hui Boon, group executive director Datuk Seri Godwin Tan Pei Poh, Pekan Nenas assemblyman Tan Eng Meng, Paragon Globe executive chairman Datuk Seri Edwin Tan Pei Seng and general manager Tang Pei Hau Paragon Globe Bhd

tuesday A PRIL 23, 2024 14 The E dge C E O m o rning brief home KUALA LUMPUR (April 22): The firm of senior lawyer Tan Sri Cecil Abraham filed a letter on Monday seeking leave (permission) from the High Court to intervene in jailed former prime minister Datuk Seri Najib Razak’s judicial review for him to be placed under house arrest, Zafrul seeks leave to file affidavit in Najib’s judicial review bid KUALA LUMPUR (April 22): An investigating officer (IO) of the Malaysian Anti-Corruption Commission (MACC) in the 1Malaysia Development Bhd (1MDB) debacle revealed that during the course of her investigation into Datuk Seri Najib Razak, the former prime minister had never divulged to her about meeting the late King Abdullah of Saudi Arabia in 2010, where the king purportedly pledged to give Najib donations. Nur Aida Arifin, 37, the 49th prosecution witness in the 1MDB-Tanore trial, said that the onus was on Najib to inform her and investigators of 1MDB about the meeting in order to defend himself. The meeting was purportedly held in January 2010 in Riyadh between Najib and the late king. Najib was accompanied by then foreign minister Datuk Seri Anifah Aman, Malaysian ambassador to Saudi Arabia Professor Datuk Syed Omar Al-Saggaf, and minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom, who had all testified to this meeting during the defence stage of Najib’s SRC International Sdn Bhd trial. SRC is a former subsidiary of 1MDB. During cross-examination by Najib’s lawyer Tan Sri Muhammad Shafee Abdullah, Nur Aida was asked why she did not record statements from Anifah, Syed Omar, and Jamil. Nur Aida retorted that Najib did not divulge the meeting when he was called by the MACC to record his statement. “There were no issues [regarding this]. Najib’s [statement to the MACC] also did not mention this. It was only during the SRC trial that this issue came up,” she said. Shafee: Why did you not ask him further about this meeting? Nur Aida: It is for him to bring it up to defend himself. Thus far, the meeting was only mentioned at the later stages of Najib’s SRC defence, and prior to this line of questioning by Shafee, it had never been brought up in the 1MDB-Tanore trial. In the SRC trial, Jamil testified that the meeting had indeed taken place, and that King Abdullah, during the meeting, told Najib that he would send the money to Najib’s private account to strengthen political ties between the two men. ‘Najib uncomfortable with large sum of monies in account’ Earlier, Nur Aida also agreed with Shafee that the former prime minister was uncomfortable with the large sums of monies in his account. “Najib [said] that he wanted to [source monies] for political funding, and did not want to use means (‘cara-cara’) used by the previous prime ministers,” the IO said. Shafee agreed that this is in line with his client’s defence. The senior lawyer then listed other people who had taken 1MDB funds but kept them overseas or had yet to return the funds. He asserted that Najib didn’t hide the monies overseas, but rather, they were kept locally, showing that Najib did not have ill intent. To back up his argument, Shafee noted that out of the US$680 million Najib received, US$620 million was returned to the sender. To this, Nur Aida said: “Najib said that there was no use for the money [returned]. He wanted to avoid any accusations (‘tohmahan’) over the high sums in his account.” Shafee again asked if any ‘robbers’ would return any of the funds. Nur Aida agreed that ‘robbers’ who stole money would not return it. The lead defence counsel then asked if Najib had used the funds for his personal use, such as partying overseas. The IO said that there were some expenses for lavish purchases, and also overseas hotel stays. However, Shafee stated that about “95%- 99%” of the funds were for political and welfare purposes, including corporate social responsibilities. This was a point the defence MACC officer: Najib never mentioned meeting with late Saudi King Abdullah during 1MDB investigations by Timothy Achariam & Tarani Palani theedgemalaysia.com by Hafiz Yatim theedgemalaysia.com had highlighted before, highlighting that payments were made to Umno Batu Kawan Penang and other Umno branches. IO says Saudi did not respond to requests for information on donor The four ‘Arab’ donation letters were from the former governor of the Madinah province, Saud Abdulaziz Majid Al Saud. Nur Aida testified that the anti-graft agency sent a mutual legal assistant request regarding the donor to Saudi Arabia, but did not get a reply, and there was no cooperation between the two parties. Shafee: What actions did the MACC take to ensure that these donation letters were genuine and not fraudulent? Nur Aida: We went to Riyadh, Saudi Arabia, to get statements from witnesses there. Nur Aida was not one of the officers who went to Saudi Arabia — the group encompassed high-ranking MACC officers. She said that the MACC officers met with two princes there, who gave a statement through their lawyer that the letters were indeed from Al Saud. Nur Aida said that the MACC was not satisfied with the findings. “Firstly, the statement was not from Prince Al Saud himself. There was no documentary evidence to indicate the original copy of the letter, and there were no supporting documents to indicate that the transactions were from him,” Nur Aida said. In this trial, Najib faces four counts of abuse of power for using his position as the then prime minister, finance minister, and chairman of 1MDB’s board of advisers to receive gratifications worth US$620 million (RM2.27 billion). He also faces 21 money-laundering charges. In the SRC trial, Najib was sentenced to 12 years’ jail, but earlier this year, that sentence was commuted to six years by the Pardons Board. Najib is currently serving that sentence in Kajang Prison. The trial before Datuk Collin Lawrence Sequerah continues on Tuesday. Read also: Jasmine Loo now gets till June 21 to file her defence in US$8 bil 1MDB suit and to represent Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz to file an affidavit. Messrs Cecil Abraham and Partners continu es on Page 15 wrote to judge Datuk Amarjeet Singh on Monday to seek permission to file Tengku Zafrul’s affidavit in response to Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s affidavit in support of Najib’s application.

tuesday A PRIL 23, 2024 15 The E dge C E O m o rning brief home PETALING JAYA (April 22): The Natural Resources and Environmental Sustainability Ministry (NRES) will closely monitor any new environmental projects in the country, including oil and gas (O&G) exploration by Petronas in the Langkasuka basin, situated in the northern region of the Straits of Melaka. Its minister Nik Nazmi Nik Ahmad said this is to ensure that new projects adhere to environmental standards and uphold a strong sense of responsibility towards the community. Besides this, he said any new project implementation must align with Malaysia’s stance, which adheres to the UAE Consensus established during the COP28 climate change conference in Dubai last year, which highlights the necessity for a fair transition to more sustainable energy sources for national advancement. Nik Nazmi underscored the significance of this stance, given Malaysia’s current reliance on fossil fuels, with Petronas serving as one of the primary contributors to the national budget through its resource exploration endeavours. “But I believe Petronas is attentive to this matter, given their sensitivity to the importance of a fair transition towards Environment Ministry to closely monitor O&G explorations in Langkasuka basin Bernama Read also: National plastic policy in the works, says Nik Nazmi In the letter sighted by The Edge, the law firm said the affidavit by Tengku Zafrul had to be made, given that there were factual inaccuracies which ought to be corrected pursuant to the inherent jurisdiction of the court, and pursuant to Order 92 Rule 4 of the Rules of Court 2012. “We (the law firm) are further instructed by our client (Tengku Zafrul) to state that our client takes no position as to the merits of the dispute between the parties. Our client merely wishes to ensure that the facts are accurately placed before this Honourable Court in a neutral manner. “We sincerely hope that this Honourable Court will consider and allow this written request for leave to file an affidavit on the grounds as set out above,” said Cecil Abraham and Partners. Order 92 Rule 4 of the Rules of Court pertains to granting an order to stay the proceedings pending the disposal of the review application. Zahid in his affidavit in support of Najib’s claim alleged that Tengku Zafrul had shown him a copy of the purported addendum order issued by the previous king, the 16th Yang Di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, during Tengku Zafrul’s visit to Zahid’s house in Kajang on Jan 30. “Upon querying further, he (Tengku Zafrul) showed me a copy of the addendum order from his phone, which showed a scan of the original copy. “The contents of the addendum order expressly stated that the applicant (Najib) be allowed to serve the reduced sentence of his imprisonment under condition of ‘house arrest’ instead of the current prison confinement in Kajang Prison. I further sighted the addendum order [dated] Jan 29, which had the seal and signature of the 16th Yang di-Pertuan Agong. “I further confirm that the addendum order is genuine and in fact the royal prerogative order as the main order,” Zahid said in the affidavit, adding that he had no copy of the addendum. Following this revelation last Wednesday, Tengku Zafrul issued a media statement, saying there were what he called in his words “certain factual errors” in Zahid’s affidavit, and sought to ensure that the factual record is properly reflected and recorded, so that all parties, in particular the High Court, are properly appraised of all material facts. “This will ultimately allow for a just and fair decision to be made in the interest of all parties concerned,” Tengku Zafrul said in the statement. Najib filed a judicial review application on April 1, where he sought a mandamus order to compel the production of the original copy of the main pardon order, along with the addendum order by the previous king. Najib, who was sentenced to serve 12 years in jail and fined RM210 million after he was found guilty of abuse of power, criminal breach of trust and money laundering in relation to RM42 million belonging to SRC International Sdn Bhd, has had his jail term halved by the Pardons Board that was chaired by the previous king earlier this year, while the fine was reduced to RM50 million. Following Tengku Zafrul’s statement, the Attorney General’s Chambers issued a brief statement on the same day, saying it would bring the matter to the court’s attention. more sustainable energy sources. “We are therefore mindful of this issue (O&G exploration in Langkasuka) to ensure that the agreements and progress we have achieved so far are maintained in forthcoming projects,” he told a media conference at the PKR headquarters here on Monday. Nik Nazmi was responding to concerns raised by environmental watchdog Rimbawatch regarding the potential impacts of Petronas’ new O&G exploration project in the Langkasuka basin, located just 30km from Penang and 20km from Langkawi. In a statement, the group said that the exploration could not only compromise Malaysia’s mitigation efforts but also endanger the biodiversity of coastal marine life, impacting the livelihoods of local fishermen and tourism. Nevertheless, Nik Nazmi stressed that the project is still in its exploration phase and will undergo rigorous assessments, including an environmental impact assessment (EIA) by the Department of Environment to ensure detailed monitoring. from Page 14

tuesday A PRIL 23, 2024 16 The E dge C E O m o rning brief home KUCHING (April 22): The Malaysian Budget and Business Hotel Association’s (MyBHA) plan to increase their members’ hotel rates by up to 40% over the next three months would hurt the tourism industry in the long term. Sarawak Minister of Tourism, Creative Industry and Performing Arts Datuk Seri Abdul Karim Rahman Hamzah said increasing the rates should not be the solution considered in facing the rising operational cost or threats as claimed by the association. “It will not help the (tourism) industry. You can come up with all kind of excuses but please think that it will disturb the equilibrium,” he told reporters after attending the Sarawak Premier’s Trophy handing over ceremony for the International Junior Tennis Championships here on Monday. done to tackle activities that threaten their businesses. Sri Ganesh said among the threats were unlicensed operators offering shortterm rental accommodations and unregulated travel agencies, in addition to rising operational cost. Abdul Karim said his ministry as well as the Federal Ministry of Tourism, Culture and Arts (Motac) had worked hard to organise over 200 events yearly to attract tourists to come to Malaysia, which in turn has benefited the hotel industry. He said as far as Sarawak is concerned, the events had lured in an increasing number of tourists, who would definitely need to stay in hotels, and this situation has led to the increase in occupancy rates for hotels. “They have to stay somewhere, even without you (the hotels) doing the marketing (promotion). The industry is thriving. Bersyukurlah,” he said. On the issues of unlicensed operators affecting the budget hotels, he said that although the hotel licensing process comes under the local authority’s purview, his ministry was prepared to work together to ensure all operators in the state are regulated. “We will look into this matter and discuss with the local government on ways to deal with it,” he added. Budget hotels’ rate increase will hurt tourism industry, says Sarawak tourism minister KUCHING (April 22): Japan’s Toyo Engineering Corporation, along with its subsidiary Toyo Engineering and Construction Sdn Bhd, have signed a memorandum of understanding (MOU) with InvestSarawak to facilitate Toyo in exploring potential investments in energy projects in Sarawak. Toyo Engineering and InvestSarawak said in a joint statement on Monday that the MOU outlines the commitment of both parties to establish a cooperative framework that will foster collaboration on potential energy projects critical to the Sarawak government’s energy transition initiatives. “Such initiatives include developing green hydrogen projects, carbon capture and storage (CCS), waste-to-energy projects that convert organic waste materials into energy, energy storage solutions such as battery storage or pumped hydro storage and smart grid technology to enhance the efficiency and reliability of the electrical grid,” they said. InvestSarawak chief executive officer Timothy Ong said the partnership with Toyo is a testament to Sarawak’s commitment to embracing clean and sustainable energy sources that will propel the state economic and social development forward. InvestSarawak, Toyo to explore potential investments in energy projects Bernama Bernama “This collaboration will leverage Toyo’s global insights and technological advancements to enhance our capabilities” he said. InvestSarawak, an agency under the purview of Sarawak’s Ministry of International Trade, Industry and Investment (MINTRED), is a one-stop centre (OSC) dedicated to attracting investments to Sarawak while fostering trade and talent development, in alignment with Sarawak’s vision for 2030 and beyond. Meanwhile, Toyo Engineering Corp senior executive officer, unit director of business development and marketing unit, Casey Takeshi Matsumuro, said Toyo was honoured to support Sarawak’s ambitious energy goals. “This collaboration allows us to bring our expertise and technology to the forefront of Sarawak’s energy landscape, aligning with our mission to contribute to sustainable growth globally,” he said. Toyo, with its track record and expertise in engineering, procurement, construction and technical services across various sectors, including oil and gas, petrochemicals and renewable energy, brings its global experience and innovative technologies to this partnership. He was commenting on a statement by MyBHA president Sri Ganesh Michiel last Saturday that Sarawak budget hotels would raise their rates if nothing was Sarawak Minister of Tourism, Creative Industry and Performing Arts Datuk Seri Abdul Karim Rahman Hamzah

tuesday A PRIL 23, 2024 17 The E dge C E O m o rning brief world NEW YORK (April 22): The first sharp pullback for US stocks in half a year is leaving investors wondering whether to buy the dip or hold out for more declines. Following several turbulent weeks, the S&P 500 is down more than 5% from its March 28 closing high, its biggest retreat since October. Though they have been rare in recent months, such drops are not uncommon: The S&P 500 has experienced an average of three pullbacks of 5% or more every year since 1929, a Bank of America analysis showed. Many market participants believe the factors that drove the S&P 500 to a 10% gain in the first quarter — including resilient economic growth and excitement over artificial intelligence — remain in place and will support stocks over the long term. For the last week, however, sellers have had the upper hand. The S&P 500 fell for its sixth straight session on Friday, the longest such streak since October 2022. While some investors are already buying on weakness, others are waiting for more clarity on the path of inflation, geopolitical tensions in the Middle East and the strength of corporate earnings before jumping in. A pullback is “long overdue,” said King Lip, chief strategist at Baker Avenue Wealth Management. “I think it’s a garden variety correction at this point.” Lip has started adding equity exposure for clients and plans to buy more if stocks slide further. Nevertheless, he believes the S&P 500 could fall by as much as 10% from its March 28 high. History shows that strong starts to a year are often followed by sizable retreats, after which the stock market typically rights itself and continues higher. The S&P 500 has seen an average maximum drawdown of 11% each time it has gained 10% or more in the first quarter, a study from Truist Advisor Services showed. The index has ended the year higher in 10 out of 11 such instances since 1950. “We’re not surprised that there was a bit of a pullback,” said Sonu Varghese, global macro strategist at Carson Group, who has been using the recent weakness as an opportunity to increase positions in smallcap stocks. “I think buyers will start stepping in,” he said. Still, investors have grown cautious. Clients of BofA sold US$800 million (RM3.8 billion) in US equities in the latest week, the third straight week they were net sellers, the firm said last Tuesday. Meanwhile, some volatility-sensitive funds that bought equities as markets by Lewis Krauskopf & Saqib Iqbal Ahmed Reuters ‘Overdue’ pullback in US stocks to test dip-buyers’ resolve marched higher have already started selling and could dump more stocks if markets grow more turbulent. Analysts at Nomura estimate such funds could dump around US$45 billion worth of stocks if the S&P 500 averages daily moves of 1% over the next two weeks. Investors are also watching the level of the Cboe Volatility Index. Though the index stands around a six-month high of 19, some volatility watchers believe it has not fully factored in the inflation worries and geopolitical rumblings that have spooked markets in recent weeks. “With the current situation in the Middle East potentially escalating, I am surprised short term volatility isn’t higher,” said Seth Hickle, managing partner at Mindset Wealth Management. “We have repositioned a small number of positions, but I am waiting to see how earnings look before making any big changes to our portfolios.” Indeed, many believe the coming week’s earnings from some of the market’s biggest names could offer support to stocks — or further exacerbate the selloff. Tesla, Meta Platforms, Alphabet, and Microsoft are all scheduled to report in the coming days. So far, the earnings picture has been mixed. Netflix shares fell on Friday as its plan to stop sharing subscriber numbers from 2025 stoked growth worries, while Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, dialed back expectations for chip sector growth. “As the S&P 500 valuation remains over 20 times forward earnings ... any disappointment from the mega-tech names reporting could push this week’s oversold market deeper into oversold territory,” wrote Quincy Krosby, chief global strategist for LPL Financial, in a Friday note. Investors will also focus on Friday’s release of the monthly Personal Consumption Expenditures Price index, a crucial piece of inflation data before the Fed’s April 30-May 1 meeting. Stronger-than-expected inflation has eroded a key driver of the bull market, with investors now pricing in around 40 basis points of interest rate cuts this year, compared to 150 priced in at the start of 2024. Tim Ghriskey, senior portfolio strategist for Ingalls & Snyder in New York, said he has been “doing some buying on the dip in very aggressive portfolios” but remains concerned about incoming inflation data. “Resumption of disinflation is key” to averting the fear of Fed rate hikes, he said. While some investors are already buying on weakness, others are waiting for more clarity on the path of inflation, geopolitical tensions in the Middle East and the strength of corporate earnings before jumping in. reuters

tuesday A PRIL 23, 2024 18 The E dge C E O m o rning brief world BEIJING (April 22): China’s fiscal revenue in the first quarter fell 2.3% from a year earlier, as some special factors including previous tax cut policies weighed, the finance ministry said on Monday. The world’s second-biggest economy grew faster than expected in the first quarter, data showed last week, offering some relief to officials, but March indicators showed domestic demand remains frail. The property downturn continues to hurt local governments’ finance and fiscal capabilities, analysts said. China’s tax revenue dropped 4.9% to 4.9 trillion yuan (RM3.2 trillion) in the first three months, but revenue from cultural, tourism and advanced manufacturing industries grew fast, Wang Dongwei, vice finance minister, told a press conference in Beijing on Monday. Excluding the influence of special factors such as a high base and tax cut policies of 2023, China’s fiscal revenue grew about 2.2% in the first quarter, he added. Fiscal expenditures grew 2.9% on year to nearly seven trillion yuan in the first three months, according to Wang, slowing significantly from 6.7% growth seen in the first two months. Responding to a question about the slow issuance of local government special bonds in January-March, Wang Jianfan, an official at the ministry said that issuance was related to funding needs of local projects, seasonal influence on construction conditions and interest rates in the bond market. In response to the impact of Covid previously, the ministry also stepped up such bond issuance volume at the beginning of each year, he said, indicating this had created a high base. The finance ministry will support technology-led industrial innovation with “full support” and shore up technology innovation and manufacturing development with tax and fee cut policies, Wang said. Amid tepid domestic demand and a property crisis, Beijing has turned to investing in high-tech manufacturing to lift the economy this year. “We will strengthen macro control, focus on expanding domestic demand, cultivate and develop new growth drivers and prevent and defuse risks” to improve the quality and efficiency of fiscal policies and enhance economic recovery, he said. Funds from the trillion yuan of sovereign bonds issued last year had been given to local governments by the end of February, the vice minister said. In particular, spending on disaster prevention and emergency management out of the funds grew by 53.4% in the first quarter. In recent days, floods have swamped a handful of cities in southern China’s densely populated Pearl River Delta following record-breaking rains. China’s 1Q fiscal revenue falls as tax cut policies weigh SHANGHAI/SINGAPORE (April 22): China left benchmark lending rates unchanged at a monthly fixing on Monday, in line with market expectations. Why it’s important The steady monthly loan prime rate (LPR) fixings come after China reported encouraging first-quarter economic data, which removes the urgency for Beijing to release monetary stimulus to aid the economic recovery. Meanwhile, a weakening yuan, uncertainty around timing of the first Federal Reserve (Fed) interest rate cut and falling net interest margins (NIMs) at commercial lenders continue to constrain the easing efforts. With the first-quarter gross domestic product (GDP) growth exceeding the annual target of “about 5%”, market analysts and traders expect the policy stance to remain unchanged at the upcoming Politburo meeting. By the numbers The one-year LPR was kept at 3.45%, while the five-year LPR was unchanged at 3.95%. In a Reuters survey of 30 market watchers conducted last week, all respondents China leaves benchmark lending rates unchanged, in line with expectations expected both rates to stay unchanged. China’s economy grew 5.3% in the first quarter year-on-year, comfortably beating analysts’ expectations, a welcome sign for policymakers as they try to shore up demand and confidence in the face of a protracted property crisis. Chinese banks extended 3.09 trillion yuan (RM2.04 trillion) in new yuan loans in March, up from 1.45 trillion yuan in February but falling short of analyst expectations. Context Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The five-year LPR was lowered by a decent 25 basis points in February to support the housing market. China’s central bank left a key policy interest rate unchanged when rolling over maturing medium-term loans last week, and drained some cash from the banking system through the bond instrument. The medium-term lending facility (MLF) rate serves as a guide to the LPR and markets mostly use the MLF rate as a precursor to any changes to the lending benchmarks. by Winni Zhou & Tom Westbrook Reuters by Ellen Zhang, Ella Cao & Kevin Yao Reuters reuters bloomberg

tuesday A PRIL 23, 2024 19 The E dge C E O m o rning brief world (April 22): Tencent Holdings Ltd shares staged their biggest rally since December after China’s biggest internet firm nailed down an earlier-than-anticipated debut of one of the year’s most eagerly-awaited mobile games. Tencent set a May 21 start date for Nexon Co’s Dungeon & Fighter Mobile for China — a marquee title expected to refresh an ageing pipeline, draw in new users and reaffirm Beijing’s easing stance for the world’s largest gaming market. China’s social media leader is seeking its next big hit after years of regulatory tightening that cut play times and slowed development. DnF Mobile isn’t a sure bet — it must contend with rival titles from ByteDance Ltd and Genshin Impact studio Mihoyo — but investors expect the well-known franchise to eventually become a decent money-spinner. “We expect gaming revenue to turn around in 2Q24,” Jefferies analyst Thomas Chong wrote in a note, predicting that the battle-oriented roleplaying-game may generate six billion yuan (RM3.94 billion) of revenue annually. “Apart from DnF, Tencent has a number of emerging franchises to drive future growth,” he said. Nexon’s stock jumped by the most in more than two months in Tokyo. Tencent’s shares rose as much as 6.2% following Nexon’s announcement, ranking among the top gainers on a gauge tracking Chinese technology companies in Hong Kong. The rally coincided with news that Washington is closing in on a controversial divestor-ban law that will force rival ByteDance to find a buyer for TikTok US or risk getting shut down. Read also: TikTok braces for US divest-or-ban law — and a legal fight Tencent shares climb most in months on earlier blockbuster debut (April 22): Japanese antitrust regulator said Alphabet Inc’s Google used tactics that limited Yahoo Japan’s ability to compete in targeted search ads, and it promised to keep monitoring the US firm. From 2015 to 2022, Alphabet blocked Yahoo Japan from accessing technology needed to receive targeted ad revenue from searches on mobile devices, Japan’s Fair Trade Commission said. Alphabet changed its conduct as soon as the watchdog flagged the practice and has promised to give Yahoo Japan access to keyword-tied targeted ad tech, the FTC said Monday. “Google’s actions had a significant effect of limiting competition,” FTC official Saiko Nakajima told reporters. Yahoo Japan is a subsidiary of LY Corp, which operates the country’s biggest messaging app Line. The Japanese watchdog will continue to monitor the situation and reserves the right to reopen its investigation into Google, Nakajima said. That promise was part of the FTC’s first-ever administrative action against Alphabet, which came with no penalty. Antitrust enforcers across the globe are increasingly worried that a small number of large companies control many of the world’s key technologies. Regulators fear that companies like Microsoft Corp, Google, and Amazon.com Inc are using their technology and scale to frustrate or buy out potential rivals and remain on top. Alphabet is fending off complaints at home and abroad that it uses unlawful tactics to block competition. In the US, it faces a US$700 million (RM3.3 billion) settlement after dozens of state attorneys general filed complaints that developers have to go through the Google Play app store to reach users. Japanese authorities are also probing Alphabet to see if it asked local smartphone makers to prioritise its search services on their devices. TAIPEI (April 22): Taiwan’s export orders rose less than expected in March, but the government said it expects surging demand for artificial intelligence (AI) applications to fuel future demand for the island’s hightech products. Export orders last month climbed 1.2% from a year earlier to US$47.16 billion (RM225.38 billion), the Economy Ministry said on Monday, missing the 3.55% gain that was forecast in a Reuters poll. Orders were down 10.4% in February. Orders for goods from Taiwan, home to tech giants such as chip manufacturer TSMC, are a bellwether of global technology demand. “Demand for AI, high-performance computing (HPC) and cloud industry continued to increase, while traditional goods demand has yet to recover significantly,” the ministry said in a statement. Looking ahead, the ministry said it expects that export orders in April would rise between 1.2% and 5.9% from a year earlier. The ministry cited risks including the impact of high interest rates in the US and Europe, China-US trade disputes, and broader geopolitical uncertainty. Japan watchdog says Google hurt local rival’s ability to compete Taiwan’s March export orders trail forecasts, but govt pins hopes on AI by Takashi Mochizuki Bloomberg by Roger Tung & Faith Hung Reuters by Charlotte Yang Bloomberg bloomberg bloomberg

tuesday A PRIL 23, 2024 20 The E dge C E O m o rning brief world SHANGHAI (April 22): Chinese state fund Central Huijin Investment bought blue-chips worth at least US$41 billion (RM196 billion) in the first quarter in a bid to shore up the sliding stock market, funds’ latest quarterly reports show. The sovereign fund bought at least 300 billion yuan of exchanged-traded funds (ETFs) in the first quarter, including Huatai-PB CSI300 ETF, E Fund CSI300 Index ETF, Harvest CSI 300 ETF, ChinaAMC CSI 300 ETF and ChinaAMC China 50 ETF, the ETFs’ reports show. The purchases helped China’s CSI300 blue-chip index bounced back roughly 14% from five-year lows hit in February. The rebound was also aided by a slew of market-friendly policies and replacement of China’s top securities regulator. Central Huijin said in early February it had expanded its scope of investment in Chinese ETFs and will further increase such investment, vowing to safeguard the stable operation of China’s capital markets. The announcement came at a time when the stock benchmark CSI 300 tumbled to five-year lows as China’s weak economic recovery and a lack of forceful government stimulus damped investor confidence. Central Huijin bought 26.3 billion units of Huatai-PB CSI300 ETF in the first quarter, the fund’s report on Monday shows, amounting to roughly 87 billion yuan based on Reuters calculations. The state fund also added roughly 73 billion yuan of E Fund CSI300 Index ETF and 53 billion yuan of Harvest CSI 300 ETFs, according to Reuters calculations. Investors had suspected purchases by state institutions were helping the market. In January, S&P Global Market Intelligence found more than US$17 billion flowed to Chinese-domiciled ETFs tracking the CSI 300. Goldman Sachs also noticed heavy buying of domestic ETFs by suspected “national team” state-affiliated investors. ChinaAMC CSI 300 ETF also saw US$7.73 billion of purchase from Central Huijin, and ChinaAMC China 50 ETF saw US$4.97 billion in the first quarter, their reports show. China state fund pours US$41 bil into stock market in 1Q, reports show (April 22): Hong Kong investment bankers could face more job cuts as the slowdown in China deals persists and employers look to trim highly compensated staff, according to Bloomberg Intelligence. An estimated 200 Hong Kong bankers lost their jobs in the past year, senior analyst Francis Chan wrote in a report published on Monday. With pay for senior bankers that’s 40%-70% higher than peers receive in Singapore, Hong Kong bankers may find their compensation becomes a “curse” as employers cut back, Chan wrote. “More global banks may further trim workforces in the city to achieve bigger cost savings, especially during China’s slowdown,” Chan said. Global financial firms have been cutting investment-banking staff in Asia due to a deal drought amid deteriorating US-China relations, a crackdown on private enterprise and a property crisis. Morgan Stanley and HSBC Holdings plc are among banks that have made cuts to their investment bank this month, with Hong Kong and China bearing the brunt. Initial public offerings (IPOs) have been depressed in Hong Kong, with proceeds slumping to the lowest in more than two decades last year. The money raised from IPOs fell another 29% in the first quarter to about US$605 million (RM2.89 billion), the worst three-month period since the global financial crisis. While there are a higher number IPO applications in Hong Kong, IPO prospects for the city “may remain dire,” the report said. US dollar and Hong Kong dollar bond issuance in Hong Kong have fallen significantly from the peak in 2020, according to Bloomberg Intelligence. Investment-banking analysts and associates in Hong Kong made 30%- 100% more than in Singapore, mainland China and Japan, while directors and managing directors made 40%-70% more, according to a Hays Asia survey in late 2023. In comparison to investment banking, the job market in wealth and private banking remains stable, with mainland wealth funds flowing to Hong Kong, benefiting banks including HSBC Holdings plc, Standard Chartered plc and Bank of China (Hong Kong). “Hong Kong’s finance professionals could face diverging fates due to different prospects for its capital-markets and wealth-management sectors,” wrote Chan. John Mullally, managing director for Hong Kong at recruiting firm Robert Walters told Bloomberg Television that a lot of clients are saying they are “at the bottom” in terms of cuts. “The sense we’re getting is that there’s probably going to be a little bit more trimming over the next kind of quarter, quarter and a half, but that as we go into the second half of the year, there will be some improvement,” he said. “But that isn’t going to necessarily result in hiring anywhere near the levels of 2021.” Read also: Five waves of UBS layoffs to start in June, SonntagsZeitung says HK bankers face more job cuts on China slowdown, high pay by Denise Wee Bloomberg Reuters reuters

tuesday A PRIL 23, 2024 21 The E dge C E O m o rning brief world HANOI (April 22): Vietnam is readying the launch next week of a new stock trading system that would speed up settlement of transactions, as part of reforms aimed at upgrading the country’s stock market and attracting more foreign investors. The move, if successfully completed, would boost the chances of the Southeast Asian nation being reclassified as an emerging market. Both the MSCI and FTSE indices currently classify Vietnam as a frontier market, preventing many funds, ing at the closing of business on April 26, according to a document sent to brokers by Vietnam’s main Ho Chi Minh City exchange and seen by Reuters. The bourse did not immediately reply to a request for comment. The new system will handle the settlement of transactions within a day, speeding up operations and facilitating trading, especially short selling, which was hampered by the current slower system. This is part of reforms that could lead to the upgrade of the market. FTSE may make a positive announcement as early as September, with an upgrade for Vietnam to be completed by next year, officials have said. The upgrade by MSCI is expected to take longer. Last year, the World Bank estimated that upgrades could trigger net inflows of between US$5 billion and US$25 billion to the US$200 billion market by the end of the decade. Vietnam’s benchmark stock index has risen 4.5% so far in 2024, but this month fell by more than 7%. Vietnam set to launch new stock trading system in bid for market upgrade (April 22): Thailand is staking claim to host a Formula One race, with Prime Minister Srettha Thavisin pitching Bangkok as a circuit for a street race that will help burnish the Southeast Asian nation’s status as a major tourism hub. Srettha, whose administration has focused on entertainment and sports events to draw high-spending tourists, met with F1 chief executive Stefano Domenicali on Monday and said the country has all it takes to hold the competition. F1 executives were in Bangkok to survey and study the routes for the race at the invitation of the Thai government, Srettha said in a post on X. The visit followed the leader’s meeting with Domenicali in Paris last month where the two discussed the possibility of Thailand hosting a street race, Rudklao Suwankiri, a deputy spokeswoman for the Thai government, said in a statement. A third of the 24 F1 races scheduled for the 2024 season, which began on March 2, will be held on a street or hybrid circuit, compared to around 15% a decade prior. These are races that take place either entirely or partially on closed-off public roads that have been transformed briefly into motorsports venues, home to high-tech racers that can hit over 200 miles per hour. In Southeast Asia, Singapore hosts the F1 race on the Marina Bay Street Circuit, located on the city’s waterfront. Since its debut in 2008, the F1 Singapore Grand Prix has attracted more than 550,000 foreign visitors and generated around S$2 billion (RM7 billion) of incremental tourism receipts, according to the island’s government. Srettha has vowed to elevate Thailand’s status as a tourism hotspot into an aviation Thailand pitches to host Formula One race to bolster tourism and logistics hub as his administration taps the so-called quick wins to stimulate the nation’s economy. He has pushed promotional campaigns to extend holidaymakers’ stay and year-round festivals to boost the number of foreign tourists and pitched Thailand as an ideal location to host the Formula E competition and MotoGP. If Thailand lands the rights to host an F1 race in 2027, it could generate about four billion baht in economic value and generate more than 1,000 jobs, Jakkaphon Tangsutthitham, a deputy secretary general to the prime minister, said on X. by Pathom Sangwongwanich Bloomberg by Phuong Nguyen & Francesco Guarascio Reuters Reuters bloomberg family offices and others from investing in companies listed there. A new stock trading system provided by the Korea Exchange has been tested for months, and is expected to go live on May 2 after securities companies complete the switch-over from the old system during a five-day public holiday period start-

tuesday A PRIL 23, 2024 22 The E dge C E O m o rning brief world (April 22): Elon Musk’s underlings at Tesla Inc are accustomed to chaos. It comes with the territory of working for a chief executive who sets exacting targets and often abruptly switches directions — whose biographer describes his more intense moods as “demon mode.” But even by Tesla standards, this year has been unruly. Its stock has slid more than 40% amid slumping sales, confusing product decisions and more price cuts. Its once-dominant position in China’s electric vehicle (EV) market is under assault. A visit with India’s Prime Minister Narendra Modi for an anticipated investment announcement was called off at the last minute. All the while, the board has tried to revive a US$56 billion (RM265.74 billion) payout to Musk that a judge voided in January, on the grounds that directors had acted as “supine servants” to the CEO. On Tuesday, Tesla is expected to report a 40% plunge in operating profit and its first revenue decline in four years. Musk has ordered up the company’s biggest layoffs ever and staked its future on a next-generation, self-driving vehicle concept called the robotaxi. People familiar with his directives, who asked not to be identified discussing internal deliberations, are unsettled by the changes the CEO wants to push through. The idea of creating an autonomous taxi service has been kicking around Tesla for at least eight years, but the company has yet to stand up much of the infrastructure it would need, nor has it secured regulatory approval to test such cars on public roads. For the moment, Musk has put off plans for a US$25,000, mass-market vehicle that many Tesla investors — and some insiders — are pushing for and believe is crucial to the carmaker’s future. In the wake of media reports on the strategic shift, key managers including Drew Baglino, an 18-year company veteran who headed Tesla’s powertrain engineering and energy business, have left. Musk, 52, has steered Tesla out of many jams in the past. At US$469 billion, the company is still valued at more than nine times the market capitalisation of General Motors Co or Ford Motor Co But after losing almost US$350 billion in market cap over four months, employees, investors and analysts alike are bewildered and second-guessing the company’s strategy. “The stock will need to undergo a potentially painful transition in ownership base, with investors previously focused on Tesla’s EV volume and cost advantage potentially throwing in the towel,” Deutsche Bank analyst Emmanuel Rosner said last week, downgrading the shares from a buy and slashing his price target by more than a third. Musk has signalled on his social media network that the recent moves amount to activating wartime CEO mode. He liked a post saying as much after sending a companywide email announcing that Tesla was cutting more than 10% of global headcount, which would mean eliminating at least 14,000 jobs. The actual number of people ushered out may exceed 20,000, according to people familiar with the company’s planning. Musk’s reasoning, according to one person with direct knowledge of his edicts, was that Tesla should reduce headcount by 20% because its vehicle deliveries dropped by that amount from the fourth quarter to the first quarter. For those still among Tesla’s ranks after this culling, Musk has radically altered the marching orders. The company is “going balls to the wall for autonomy,” he declared last week. The robotaxi is now taking precedence over a cheaper car he first teased four years ago, both with respect to setting timelines for prototypes and arranging production capacity, one person familiar with the planning said. Read the full story Elon Musk’s robotaxi dreams plunge Tesla into chaos (April 22): Tesla Inc’s price cuts in China could cost the carmaker the entirety of its operating profit in the world’s biggest electric-vehicle market, Evercore ISI warned in a new report. The automaker had the most margin to give in North America, where it also marked down vehicles over the weekend, Evercore’s Chris McNally wrote Monday. Its business in China “may now be breakeven or even negative” on the basis of earnings before interest and taxes, he said. Tesla also dropped prices in both the US and Germany after disappointing first-quarter sales contributed to swelling inventory. In China, the revamped Model 3 fell to 231,900 yuan (RM153,032) from 245,900 yuan previously — back to its special launch price. The Model Y was discounted to 249,900 yuan, the cheapest it’s been in at least five years. Tesla shares traded down as much as 4.8% before the start of regular trading. Tesla’s latest price cuts risk wiping out China earnings The stock has fallen 41% this year. China’s Li Auto Inc immediately responding with discounts and cash rebates on new models. The company cut prices by 6% to 7% across its lineup, with the L7 sport utility vehicle now starting from 301,800 yuan. People who have already ordered but not taken delivery of their cars will be entitled to the new price, and Li Auto will offer cash to existing owners of 2024 models. The automaker’s Hong Kong-listed shares fell 8.3% to their lowest close in almost a full year. China’s EV price war has been running since late 2022, when Tesla started discounting its vehicles. Competition intensified as automakers struggled to meet sales targets, and has shown little sign of abating this year, with market leader BYD Co marking down some of its most popular cars. Its Seagull hatchback, for example, now costs less than US$10,000. by Peter Vercoe Bloomberg by Edward Ludlow & Dana Hull Bloomberg bloomberg bloomberg

TUESDAY APRIL 23, 2024 23 THEEDGE CEO MORNING BRIEF WORLD JAKARTA (April 22): An Indonesian court on Monday rejected in full a challenge from losing candidate Anies Baswedan seeking a re-run of February’s presidential election and the disqualification of winner Prabowo Subianto and his running mate. The Constitutional Court ruled that there was no evidence of systematic fraud and presidential “meddling”, nor that state bodies, regional officials and social assistance had been mobilised to sway polls in the world’s third-largest democracy. “The plaintiff’s petition has no legal basis in its entirety,” said Chief Justice Suhartoyo, announcing the decision. Five judges ruled in favour of rejecting the petition, with three dissenting opinions, he said. Losing presidential candidates Anies and Ganjar Pranowo have both separately alleged there was state interference to favour Defence Minister Prabowo, who won by a huge margin, and had complained his running mate, the current president’s 36-year-old son, should not have been allowed to take part. The administration and Prabowo had rejected the allegations. The judges are expected to read their decision on Ganjar’s petition later on Monday. The rivals of former special forces commander Prabowo had sought his disqualification arguing the government’s widespread distribution of social aid, including handouts of rice, cash and fertiliser, in key areas had swayed the vote in his favour. Cabinet members in court denied that the aid swayed voters and Prabowo, who won 58% of the vote, has dismissed the claim as baseless. Judge Saldi Isra, who cast one of three dissenting votes on Monday, agreed that social assistance had been wielded for electoral advantage and argued for a re-vote in some areas. “Based on the legal and factual consideration, the distribution of social aid... for electoral gains cannot be disregarded at all,” he said. Anies and Ganjar, who won about 25% and 16% of votes respectively, had also alleged that tacit support from the hugely popular President Joko Widodo, better known as Jokowi, had gifted Prabowo an unfair advantage. Jokowi came under intense scrutiny in the election run-up, with critics alleging he abused his position to favour Prabowo, with the aim of preserving his legacy after a decade in charge of Southeast Asia’s biggest economy. Read the full story Indonesian court rejects first of two petitions seeking election re-run (April 22): US and Philippine troops will sail beyond the Southeast Asian nation’s territorial waters for the first time since the joint annual drills started three decades ago, risking further maritime tensions with Beijing. The joint exercises will be held in multiple Philippine locations near the disputed South China Sea and Taiwan despite China’s warning that “tensions could get worse” with the activities set to run from April 22 to May 10. Over 16,700 personnel are expected to take part in the training called “Balikatan,” a Filipino word that means “shoulder to shoulder.” Australian and French troops will also take part in some of the exercises. For the first time since Balikatan started in 1991, the allies will sail outside the 12 nautical miles of the Philippines’ baseline off the western Palawan province, which faces the South China Sea. The US military’s maiden deployment in the Philippines of a missile system covering a range that could reach China’s southern provinces shows “the drills are beyond self-defence purposes,” according to Cao Weidong, a retired senior researcher at the PLA Naval Research Academy. This year’s war games are taking place at a time of increasingly strained relations between China and the Philippines as President Ferdinand Marcos Jr grew more assertive over territorial rights and bolstered ties with the US and its allies. Maritime encounters between the countries have become more frequent, with China’s recurring use of water cannons damaging Philippine vessels and at times injuring the crew. The use of the missile system, according to Philippine military Colonel Michael Logico would only be for logistical training and it will not be fired, emphasising that the drills aren’t aimed against China. “The intention of targeting China’s mainland is very clear,” Cao said. “We can US, Philippine troops kick off drills as China tensions mount also deploy corresponding weaponry and alert equipment so that we can respond,” he said without elaborating. US and Philippine troops will also simulate the sinking of an “enemy ship” and retaking three Philippine islands, seeking to enhance the interoperability of their militaries. Balikatan will involve “tracking of simulated air threats and targeting them with multiple air and missile defense systems” as well as “integrating multilateral air and land platforms to increase awareness of the maritime security situation,” the US embassy said in a statement last week. This year’s exercises will also feature cyber defence and information warfare after the Philippines grappled with recent hacking incidents. Chinese Foreign Ministry spokesperson Lin Jian last week warned that “the region will only become less stable” when countries outside are brought into the South China Sea “to flex muscles and stoke confrontation”. Read also: China is committed to resolving maritime disputes through talks, says official BY CLIFF VENZON Bloomberg BY ANANDA TERESIA & STANLEY WIDIANTO Reuters Candidates Anies Baswedan (pic) and Ganjar Pranowo had both separately alleged there was state interference to favour Defence Minister Prabowo, who won by a huge margin. REUTERS

TUESDAY APRIL 23, 2024 24 THEEDGE CEO MORNING BRIEF WORLD Fed’s forecasting method looks increasingly outdated as Bernanke pitches an alternative BY CRAIG TORRES Bloomberg (April 22): The Federal Reserve (Fed) is stuck in a mode of forecasting and public communication that looks increasingly limited, especially as the economy keeps delivering surprises. The issue is not the forecasts themselves, though they’ve frequently been wrong. Rather, it’s that the focus on a central projection — such as three interest-rate cuts in 2024 — in an economy still undergoing post-pandemic tremors fails to communicate much about the plausible range of outcomes. The outlook for rates presented just last month now appears outdated amid a fresh wave of inflation. An alternative method starting to gain steam is called scenario analysis, which involves emphasising a range of credible risks to the baseline and how a central bank might respond. It’s a tactic that becomes especially useful in times of high economic uncertainty. “The Fed urgently needs to incorporate scenario analysis into its public communications,” said Dartmouth College professor Andrew Levin, who was a top adviser to former Fed chair Ben Bernanke. Levin describes it as “stress tests for monetary policy”. Bernanke himself is currently making a similar case across the Atlantic. He recommended the Bank of England (BOE) adopt such an approach in a report published this month for the UK central bank. It wouldn’t be the first to do so: Sweden’s Riksbank, for example, already uses scenarios to think about alternative policy paths. Publishing both central and alternative scenarios means “the public will be able to draw sharper inferences about the reaction function and thus better anticipate future policy actions,” Bernanke wrote in his review of the BOE’s forecasting methods. A sizzling economy continues to surprise Fed officials. From December to March, they revised up their outlook for growth in 2024 by a substantial 0.7 percentage point and projected three rate cuts this year, according to their median estimate. Higher-than-expected inflation data quickly rendered that call obsolete, at least in financial markets: Investors have dialed back the number of cuts expected this year, while options markets say the probability of one cut or less is about a coin toss. The projections represent a compilation of the views of 19 policymakers about the likely trajectory for growth, unemployment, inflation and interest rates. By design and intention, the Fed trains the eyes of investors and analysts on the median estimates. But at times like the present, when the economy is highly unpredictable, the full range of views acquires more importance. In March, for example, nine of 19 officials wrote down two rate cuts or fewer for 2024, a view that has suddenly become more plausible with the arrival of the latest inflation figures. Fed chair Jerome Powell’s constant refrain is that what the central bank ultimately decides on rates will depend on the data, though he has leaned into the rate-cut narrative this year. Without a sense of how officials might revise their path for rates in a “hot economy” scenario, “any shift in these outlooks creates more volatility”, said Ira Jersey, chief US interest-rate strategist at Bloomberg Intelligence. “Understanding how the Fed is handicapping such potential outcomes could provide valuable information,” he said. Fed staff economists do run scenarios for policymakers. But they are model-driven, don’t reflect an agreed-upon anticipated reaction of the rate-setting committee and are irrelevant for communications purposes since they are made public only with a five-year lag. Historical record There are several ways Fed officials could begin to communicate the risk of alternative paths. The New York Fed already asks Wall Street dealers to assign probabilities for different outcomes of the year-end policy rate. If policymakers did the same, investors would have likely seen a greater-than-zero chance of no rate cuts in 2024. “From their perspective, it may be tidier to communicate about baseline outcomes. The question is, ‘What is the most helpful thing to do?’” said Kris Dawsey, the head of economic research at the investment firm DE Shaw Group. “There is a sense that it is costly to change the way they communicate on the rate path too abruptly.” After what has been a volatile couple of years for the economy, Dawsey’s analysis shows that economic forecasts collected from market participants and published by the New York Fed also show a tighter range of outcomes than the historical record suggests, going back to World War II. Dawsey said in his own view, another year of economic growth above 3% is slightly less than a coin toss, based on historical patterns. That’s a risk that both investors and central bankers have to take on board and talk about. The information value of the Fed’s quarterly projections is something officials have been concerned about for years. Treasury Secretary Janet Yellen, when she was Fed vice chair in 2012, tried to get the committee to agree on publishing a consensus forecast. That effort was unsuccessful. REUTERS The alternative method involves emphasising a range of credible risks to the baseline and how a central bank might respond. It’s a tactic that becomes especially useful in times of high economic uncertainty.

TUESDAY APRIL 23, 2024 25 THEEDGE CEO MORNING BRIEF WORLD Baltic Exchange shipping updates A weekly round-up of tanker and dry bulk market (April 19, 2024) CAPESIZE The Capesize market witnessed an eventful and generally positive week. Early in the week, a subdued start led to cautious attitudes among market participants, with slight declines in the BCI 5TC and C3 index. However, a notable turnaround occurred midweek, as sentiment improved markedly, particularly in the Pacific market. Increased coal demand from East Australia to China and weather conditions impacting operations in China drove a surge in rates. Throughout the week, all three major miners remained active in the Pacific, contributing to upward pressure on rates for both the BCI 5TC and C5 index. Stronger fixtures were reported, with rates reaching as high as US$12.10 for C5, a US$1.50 increase on the week. Activity in the South Atlantic, particularly from Brazil and West Africa to the Far East, also contributed to the positive momentum, with rates climbing steadily. With a slight tightening of the tonnage list in the Pacific towards the end of the week, sentiment remained buoyant, supported by ongoing demand and firm rates. By the end of the week, the BCI 5TC settled at US$23,543, marking a significant improvement from the week’s start. PANAMAX Most of the excitement emanated from the Atlantic again last week. The continued lack of early tonnage in the North had a profound effect on rates, with sound trans Atlantic demand rates lurched forwards with mention of various voyage cargoes fixed at above index timecharter equivalents. US$30,000 was rumored fixed for a US East coast to China on 82,000-dwt type delivery this side the headline rate with fronthaul trades from the North Atlantic also increasing, adding further fuel to the fire. The Pacific market rose steadily throughout the week buoyed by the firm sentiment seeping in from Atlantic market. Several vessels fixed for EC South America rounds, again at a premium to Pacific rounds which hovered around the US$15,000 mark. Several period fixtures were reported due to an improving outlook and steady increasing paper values, a shade over US$20,000 perhaps the highlight for a nicely described 82,000-dwt delivery China for 6 to 8 months trading. ULTRAMAX/SUPRAMAX A positive week for the sector with stronger rates being achieved in most areas. The Atlantic saw sustained interest from the US Gulf and healthy demand from the Continent and Mediterranean, whilst the South Atlantic saw reasonable levels of fresh enquiry. A steady supply of Indonesian coal demand helped maintain rates from South Asia, whilst further north brokers spoke of a healthy volume of NoPac and backhaul business. Period cover was short, a 63,000-dwt open North China fixing a short period at US$19,250, whilst a 57,000-dwt also open North China fixed 12 months trading at US$16,500. In the Atlantic, a 63,000-dwt was heard fixed for a trip from US Gulf to Japan with wood pellets at US$26,000. From the Mediterranean, a 53,000-dwt fixed delivery Egypt trip to West Africa at US$14,000. In Asia, a 56,000-dwt fixed from SE Asia via Indonesia redelivery South Korea in the low-mid US$17,000s. For backhaul enquiry, a 56,000-dwt was heard fixed delivery South China for a trip to West Africa at US$12,500 and then a split rate of US$15,500 after 65 days. HANDYSIZE Positivity returned to the Handysize sector as the week progressed. The US Gulf, saw a reduction in tonnage availability and a 39,000-dwt fixed from SW Pass to North Coast South America with a cargo of grains at a rate between US$10,000 and US$11,000. Also, a 35,000-dwt fixed from Columbia to the Caribbean with an intended cargo of coal at around US$11,000. In the South Atlantic, cargo availability increased, which combined with a reduction in draft in the River Plate added pressure to charterers. A 28,000-dwt was fixed from Recalada via Upriver to Poti with a cargo of grains at US$16,000. The Continent and Mediterranean were said to be lacking direction, however a 38,000-dwt who was said to be unable to carry dirty cargo and had limited employment opportunities fixed from Nador to the US Gulf with a cargo of barytes at US$11,000. Whilst information from Asia was limited, brokers spoke of more positivity as the cargo-to-tonnage balance changed in the owner’s favor. CLEAN LR2 In the MEG this week LR2 freight received a welcome upturn in freight rates this week. The TC1 rate for 75kt MEG/ Japan resurged 41 points to WS207 and the 90kt MEG/UK-Continent TC20 voyage similarly cranked up its value by US$1.28 million to US$6.38 million. West of Suez, Mediterranean/East LR2’s saw another drop this week due to inactivity to US$3.46 million (-US$142,000). LR1 In the MEG, LR’1 freight also turned back up this week. The 55kt MEG/Japan index of TC5 went from WS193 to WS231 taking the Baltic round trip TCE for the run back to just under US$40,000 per day. The 65kt MEG/UK-Continent of TC8 hopped up 16% to US$4.74 million. On the UK-Continent, the 60kt ARA/ West Africa dropped by 11 points this week to WS185. Read the full report

TUESDAY APRIL 23, 2024 26 THEEDGE CEO MORNING BRIEF MARKETS Top 20 active stocks World equity indices Top gainers (ranked by %) Top losers (ranked by %) Top gainers (ranked by RM) Top losers (ranked by RM) NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) BINA PURI HOLDINGS BHD 130.4 -0.005 0.075 -11.80 253.1 KEYFIELD INTERNATIONAL BHD 108.8 1.030 1.930 - 1,544.0 RENEUCO BHD 60.1 0.015 0.090 -59.10 101.3 PAN MALAYSIA HOLDINGS BHD 44.7 0.005 0.215 126.30 199.7 DATAPREP HOLDINGS BHD 43.3 0.015 0.135 -20.60 99.6 CUSCAPI BHD 37.6 0.030 0.235 34.30 222.1 ANCOM LOGISTICS BHD 37.5 0.045 0.225 80.00 106.5 MY EG SERVICES BHD 36.4 0.005 0.775 -4.90 5,780.8 INGENIEUR GUDANG BHD 36.0 0.000 0.140 7.70 212.3 SP SETIA BHD GROUP 33.0 0.070 1.390 73.80 6,426.4 IFCA MSC BHD 30.5 0.060 0.415 45.60 251.2 DAGANG NEXCHANGE BHD 27.9 0.000 0.390 -2.50 1,231.0 VELESTO ENERGY BHD 25.3 -0.005 0.270 17.40 2,218.2 UEM SUNRISE BHD 24.8 0.020 1.030 26.40 5,210.2 YTL CORP BHD 23.0 0.070 2.670 41.30 29,284.0 EVERSENDAI CORP BHD 22.7 0.010 0.400 142.40 312.4 SIME DARBY PROPERTY BHD 21.2 0.010 0.900 44.00 6,120.8 MALAYSIAN RESOURCES CORP BHD 21.0 0.035 0.665 49.40 2,970.9 SNS NETWORK TECHNOLOGY BHD 19.6 0.010 0.360 53.20 580.6 YTL POWER INTERNATIONAL BHD 18.4 0.040 4.060 59.80 32,933.3 Data as compiled on April 22, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEYFIELD INTERNATIONAL BHD 1.930 114.44 108.8 - 1,544.0 XOX BHD 0.015 50.00 5.7 0.00 77.9 COMPUGATES HOLDINGS BHD 0.015 50.00 0.0 0.00 82.5 ANCOM LOGISTICS BHD 0.225 25.00 37.5 80.00 106.5 RENEUCO BHD 0.090 20.00 60.1 -59.10 101.3 XIDELANG HOLDINGS LTD 0.030 20.00 0.2 20.00 63.5 XOX NETWORKS BHD 0.030 20.00 0.0 -14.30 34.1 IFCA MSC BHD 0.415 16.90 30.5 45.60 251.2 IVORY PROPERTIES GROUP BHD 0.070 16.70 0.0 -12.50 34.3 TEX CYCLE TECHNOLOGY MALAYSIA 1.100 16.40 12.6 59.40 278.0 CUSCAPI BHD 0.235 14.60 37.6 34.30 222.1 ARB BHD 0.040 14.30 1.2 -38.30 50.0 INFRAHARTA HOLDINGS BHD 0.160 14.30 0.6 52.40 65.0 PDZ HOLDINGS BHD 0.040 14.30 0.2 -20.00 23.5 BARAKAH OFFSHORE PETROLEUM 0.040 14.30 0.0 14.30 40.1 KAMDAR GROUP M BHD 0.205 13.90 0.1 7.90 40.6 DATAPREP HOLDINGS BHD 0.135 12.50 43.3 -20.60 99.6 GREEN PACKET BHD 0.045 12.50 1.0 12.50 89.8 CHINA OUHUA WINERY HOLDINGS 0.045 12.50 0.0 -18.20 30.1 TURIYA BHD 0.380 11.80 5.6 65.20 86.9 Data as compiled on April 22, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) KEY ALLIANCE GROUP BHD 0.005 -50.00 878.8 -50.00 18.4 HONG SENG CONSOLIDATED BHD 0.010 -33.30 5374.9 -60.00 51.1 LAMBO GROUP BHD 0.025 -16.70 36.0 25.00 38.5 TA WIN HOLDINGS BHD 0.030 -14.30 503.6 -25.00 103.1 CLASSITA HOLDINGS BHD 0.040 -11.10 2039.7 -11.10 49.3 TRIVE PROPERTY GROUP BHD 0.050 -9.10 28.7 -37.50 63.2 OVERSEA ENTERPRISE BHD 0.050 -9.10 2.0 -16.70 113.4 SENTORIA GROUP BHD 0.055 -8.30 3680.1 -38.90 33.7 OCR GROUP BHD 0.055 -8.30 680.6 -8.30 76.2 MALAYAN UNITED INDUSTRIES BHD 0.060 -7.70 3453.0 0.00 193.6 ASIA POLY HOLDINGS BHD 0.060 -7.70 1080.2 -25.00 57.5 ECOBUILT HOLDINGS BHD 0.060 -7.70 440.6 -33.30 25.2 WOODLANDOR HOLDINGS BHD 0.715 -7.10 39.9 -7.10 28.6 SHH RESOURCES HOLDINGS BHD 1.170 -7.10 10.0 -17.00 117.0 BTM RESOURCES BHD 0.070 -6.70 71.5 0.00 88.0 IREKA CORP BHD 0.285 -6.60 48.5 -44.70 64.9 NICHE CAPITAL EMAS HOLDINGS 0.145 -6.50 10393.3 7.40 196.8 CPE TECHNOLOGY BHD 1.190 -6.30 6592.6 19.60 798.9 BINA PURI HOLDINGS BHD 0.075 -6.30 130376.7 -11.80 253.1 APEX EQUITY HOLDINGS BHD 0.920 -6.10 20.0 -14.80 186.4 Data as compiled on April 22, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) MALAYSIAN PACIFIC INDUSTRIES 30.340 -0.760 0.1 7.60 6,035.5 PETRONAS DAGANGAN BHD 21.540 -0.120 0.0 -1.40 21,399.0 BLD PLANTATION BHD 10.880 -0.120 0.0 -1.10 1,017.3 PIE INDUSTRIAL BHD 5.650 -0.100 0.9 73.80 2,169.8 SHH RESOURCES HOLDINGS BHD 1.170 -0.090 0.0 -17.00 117.0 CPE TECHNOLOGY BHD 1.190 -0.080 6.6 19.60 798.9 FRONTKEN CORP BHD 3.750 -0.070 3.6 15.70 5,898.4 HENGYUAN REFINING CO BHD 3.050 -0.070 0.3 -0.70 915.0 SCIENTEX PACKAGING AYER KEROH 2.000 -0.070 0.0 -10.30 701.2 GREATECH TECHNOLOGY BHD 4.430 -0.060 1.4 -7.70 5,556.1 APEX EQUITY HOLDINGS BHD 0.920 -0.060 0.0 -14.80 186.4 WOODLANDOR HOLDINGS BHD 0.715 -0.055 0.0 -7.10 28.6 GAMUDA BHD 5.100 -0.050 6.3 11.10 14,122.9 UZMA BHD 1.230 -0.050 2.1 64.00 476.3 CRESCENDO CORP BHD 3.650 -0.050 1.3 57.30 1,019.9 GE-SHEN CORP BHD 3.780 -0.050 0.1 225.90 474.7 GAS MALAYSIA BHD 3.530 -0.050 0.1 10.00 4,532.5 KHIND HOLDINGS BHD 2.750 -0.050 0.0 7.40 115.6 KLUANG RUBBER CO MALAYA BHD 4.740 -0.050 0.0 30.90 294.7 EG INDUSTRIES BHD 1.390 -0.040 5.4 -7.30 627.2 Data as compiled on April 22, 2024 Source: Bloomberg NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) KEYFIELD INTERNATIONAL BHD 1.930 1.030 108.8 - 1,544.0 NESTLE MALAYSIA BHD 124.700 0.700 0.1 6.00 29,242.2 HEINEKEN MALAYSIA BHD 23.040 0.640 0.1 -4.60 6,960.3 UNITED PLANTATIONS BHD 25.700 0.300 0.4 44.40 10,660.0 DUTCH LADY MILK INDUSTRIES BHD 33.100 0.300 0.0 42.90 2,118.4 PANASONIC MANUFACTURING 18.920 0.280 0.0 5.10 1,149.3 ALLIANZ MALAYSIA BHD 21.100 0.280 0.0 14.40 3,755.2 AJINOMOTO MALAYSIA BHD 18.940 0.260 0.0 19.10 1,151.5 APOLLO FOOD HOLDINGS BHD 6.600 0.250 0.0 14.60 528.0 HONG LEONG INDUSTRIES BHD 10.720 0.160 0.0 22.10 3,424.8 TEX CYCLE TECHNOLOGY MALAYSIA 1.100 0.155 12.6 59.40 278.0 MEGA FIRST CORP BHD 4.830 0.150 1.2 30.90 4,553.5 GENTING PLANTATIONS BHD 6.110 0.150 0.2 9.20 5,481.7 HARRISONS HOLDINGS MALAYSIA 9.150 0.150 0.0 6.10 626.6 MALAYSIA AIRPORTS HOLDINGS 10.000 0.130 2.7 35.90 16,685.5 MSM MALAYSIA HOLDINGS BHD 3.190 0.130 2.6 98.10 2,242.5 CARLSBERG BREWERY MALAYSIA 18.400 0.120 0.2 -4.60 5,625.8 GUAN CHONG BHD 2.670 0.110 7.5 45.90 3,136.0 YOONG ONN CORP BHD 2.450 0.110 2.1 53.10 388.7 HUME CEMENT INDUSTRIES BHD 2.530 0.100 0.5 12.40 1,589.1 Data as compiled on April 22, 2024 Source: Bloomberg CLOSE CHANGE CHANGE (%) CLOSE CHANGE CHANGE (%) DJIA * 37,986.40 211.02 0.56 S&P 500 * 4,967.23 -43.89 -0.88 NASDAQ 100 * 17,037.65 -356.66 -2.05 FTSE 100 * 7,895.85 107.70 1.36 AUSTRALIA 7,649.16 81.88 1.08 CHINA 3,044.60 -20.67 -0.67 HONG KONG 16,511.69 287.55 1.77 INDIA 73,648.63 560.30 0.77 INDONESIA 7,073.82 -13.50 -0.19 JAPAN 37,438.61 370.26 1.00 KOREA 2,629.44 37.58 1.45 PHILIPPINES 6,444.08 1.08 0.02 SINGAPORE 3,225.17 48.66 1.53 TAIWAN 19,411.22 -115.90 -0.59 THAILAND 1,349.52 17.44 1.31 VIETNAM 1,190.22 15.37 1.31 Data as compiled on April 22, 2024 * Based on previous day’s closing Source: Bloomberg CPO RM 3,93812.00 OIL US$ 86.63-0.66 RM/USD 4.7765 RM/SGD 3.5073 RM/AUD 3.0759 RM/GBP 5.9016 RM/EUR 5.0918 1,559.59