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Jakel to surface as new major shareholder

of Cypark — sources
Report on Page 2.

Ten stocks primed

for a better 2023
Report on Pages 3, 4 & 5.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
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Jakel to surface as new major shareholder
of Cypark — sources
KUALA LUMPUR (Jan 3): Jakel Group
is expected to surface as the single largest
shareholder in renewable energy compa-
ny Cypark Resources Bhd, according to
sources.
Market sources told The Edge that
Jakel’s investment arm Jakel Capital could
be taking up the whole block of Cypark’s
private placement exercise, involving 30%
of the total number of issued shares.
Another source, however, said Jakel
Group will only be subscribing to half of
the private placement shares — represent-
ing a 15% stake of the company — while
the remaining half block to be taken up
by another friendly party.
“The capital injection by Jakel will pro-
vide a lifeline to Cypark,” the source said.
At press time, the representative of Jakel
and Cypark founding CEO Datuk Daud
Ahmad have yet to respond to The Edge’s
queries.
Last week, Cypark fixed the issue price
of its private placement exercise at 38 sen
apiece to raise about RM68 million, which
is lower than what it had planned earlier.
The placement comprises up to 178.94
million new shares, representing up to 30%
of the group’s issued shares.
Aside from the placement, Cypark has
also issued 49.89 million new shares via an
Employees’ Share Option Scheme (ESOS)
at 38 sen a share.
According to a filing with Bursa Ma-
laysia on Dec 29, Daud had subscribed
to the bulk of the ESOS at 40 million
shares, which is equivalent to RM15.2
million of investment. The remaining
9.89 million shares were subscribed by
the company’s directors including Tan
Sri Razali Ismail. The ESOS exercise will
see another RM18.95 million injected
into the company.
Following the completion of the exer-
2 THEEDGE CEO MORNING BRIEF
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H O M E
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& LIEW JIA TENG
theedgemarkets.com
cise, Jakel is expected to own an about
23% stake in Cypark.
On Tuesday, shares in Cypark closed at
52 sen per share, giving it a market capi-
talisation of RM306.20 million.
On the first day of trading in 2023,
its share price surged as much as 17%
to 54 sen per share before closing the
day at 52 sen.
In less than one week, Cypark’s share
price spiked more than 35%.
At the last trading price of 52 sen, Jakel
is buying Cypark shares at a 27% discount
to the market.
In a filing with Bursa Malaysia on De-
cember 28, Cypark said the issue price
of its placement represents a discount
of almost 8% to the volume-weighted
average price of the units for the five
market days up to and including Dec
27 of 41.27 sen apiece.
The current single largest shareholder
of Cypark is Chung Chee Yang, who first
emerged in the company last August when
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he acquired 30 million shares of Cypark
via the open market, which gave him a
5.095% stake.
He then raised his stake via a series of
open market acquisitions. By Sept 15, his
shareholding had gone up to 7.93%, versus
Daud’s 6.77% stake. By end-November,
he had 12.48% stake in Cypark
Cypark’s third largest shareholder is
Amanah Saham Nasional Bhd, which
holds 6.3% via Amanah Saham Bumi-
putera and Amanah Saham Malaysia 3.
Jakel group, which is in the business of
textile trading and property development,
is no stranger in the local stock market.
In May 2021, Jakel group managing
director Datuk Seri Mohamed Faroz
Mohamed Jakel became a shareholder
in ACE Market-listed technology com-
pany Sedania Innovator Bhd.
He emerged as a substantial shareholder
in Sedania after subscribing to 43.53 mil-
lion shares in the company’s private place-
ment exercise, giving him a 12.55% stake.
It is worth noting that Jakel suffered two
fire outbreaks over the past few days. A
fire almost destroyed Wisma Jakel in Shah
Alam on Jan 1. On early Tuesday (Jan 3), a
second fire broke out at the curtain store
room on the third floor of Wisma Jakel’s
premises.
Jakel’s involvement in Cypark will be
an interesting one considering the latter’s
diminishing profitability and increasing
debts.
For the financial year ended October 31,
2022, Cypark’s net profit dropped 35% to
RM48.7 million from RM75.42 million a
year ago, on the back of a 22% decline in
revenue to RM246.89 million compared
to RM315.33 million previously.
As of October 31, Cypark’s borrowings
stood at RM1.5 billion with cash and cash
equivalent of RM181.1 million.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3 3 THEEDGE CEO MORNING BRIEF

H O M E

Ten stocks primed for a better 2023

KUALA LUMPUR (Jan 4):The year 2022
could be akin to a perfect storm that gath-
ered to punish equities performance last year.
Stocks momentum in Bursa Malaysia was
impacted by higher-than-ever inflation driven
by slew of interest rate hikes by both the US
Federal Reserve and Bank Negara Malaysia.
The FBM KLCI ended on Dec 30,
2022 with a decline of 3.46% from Jan
3, 2022. Several indices beat the bench-
mark’s performance in the same period
including the Bursa Malaysia Finance In-
dex (5.68%), the Energy Index (10.27%)
and the Plantation Index (6.37%).
In Malaysia, several industries were
also affected by labour shortage, higher
minimum wage, as well as higher raw
material costs and taxes.
Although the eventual termination of
Covid-19 disruptions boosted consum-
er spending, rising inflation continued
to spoil investor sentiments because of
expected macro-economic tightening to
curb inflationary pressures, said Fortress
Capital Asset Management Sdn Bhd chief
executive officer Thomas Yong.
As the curtain raised to 2023, will the
old monsters rear their heads into this year?
According to CGS-CIMB Securities
Sdn Bhd, 2023 is predicted to remain
challenging as corporates adapt to the
new policy and political landscape post-
15th general election (GE15) and adjust
to slower global growth, tighter monetary
policy, and ongoing geopolitical tensions.
It may be inevitable that a challenging
year looms ahead, but investors still can
look forward to a pocket of opportunities,
said analysts. The Edge CEO Morning Brief
has compiled a list of potential stocks that
may do fairly well in 2023 based on lead-
ing financial and research firms.
BY PRIYATHARISINY VASU & HAILEY CHUNG
theedgemarkets.com
RHB Bank Bhd
RM
6.0
RM5.68
5.5
RM5.04
5.0
Jan 3, 2022 Jan 3, 2023
Source: Bloomberg
include some combination of credit risk re-
vamp, divestiture of subscale or non-core
businesses and varying degrees of digitisa-
tion of offerings. “As a result, return on eq-
uity (ROE) visibility for RHB has improved
meaningfully for 2023-24,” said JP Morgan.
AmInvestment Bank has a target price
(TP) of RM7.40 on the bank, while JP
Morgan set it at RM6.50 per share and
CGS-CIMB’s TP for RHB is RM7.62.
CIMB Group Holdings Bhd
The current positive market sentiment fol-
lowing GE15 is expected to spill over into
the first quarter of 2023 (1Q2023) and
continue to boost the banking sector, said
UOB Kay Hian in a report.
“We opine that investors should take
this opportunity to sell into strength by
milking the last leg of a potential sector
outperformance and taking positions in
higher-beta large-cap banking stocks like
CIMB Group which should outperform
in a broad-based market in risk-on mode
going into 1Q2023,” the research outfit
noted.
Likewise JP Morgan said CIMB deliv-
ered a good turnaround on cost base as
well as asset quality with return of equity
visibility that has improved meaningfully.
Yong of Fortress added that banks had
also made pre-emptive provisions and there
is a possibility of provision write-backs if the
economy slows down less than expected.
“Furthermore, the attractive dividend
yield of the sector makes the sector a safe
pick for institutional investors,” he added.
UOB Kay Hian ascribed a target price
of RM6.50 per CIMB share, and JP Mor-
gan set it at RM6.
Malaysia Airports Holdings Bhd
Malaysia Airports Holdings Bhd (MAHB)
is expected to benefit from the strong re-
covery of passenger traffic volume that will
drive earnings momentum of the airport
operator.
“For 2023, we assume that domestic
and international traffic volume would re-
cover to 91% and 84% of 2019’s volume,”
said UOB Kay Hian.
The research outfit added that the
growth of MAHB is premised on rising
optimism about the short-lived impact
of the Omicron variant and locals’ mo-
bility behaviour graduating to the en-
demic stage.
CO N TI N U ES O N PAGE 4

RHB Bank Bhd CIMB Group Holdings Bhd Malaysia Airports Holdings Bhd
Three research outfits, namely AmInvest- RM RM
ment Bank Bhd, JP Morgan Asia Pacific 6.0 RM5.70 7.5
Equity Research and CGS-CIMB Securi-
ties Sdn Bhd, have listed RHB Bank Bhd
to leverage interest rate uptrend that will 7.0
RM6.57
benefit the interest income of the bank 5.5
with lower provision. 6.5
AmInvestment Bank noted that RHB
Bank is one if its top picks for banks due RM5.23 6.0
to its valuation, which remains undemand- 5.0
ing, trading at an attractive financial year 5.5 RM5.97
2023 (FY2023) price book-value (PB/V)
of 0.8 times and strong capital position 4.5 5.0
among peers with a Common Equity Tier Jan 3, 2022 Jan 3, 2023 Jan 3, 2022 Jan 3, 2023
1 capital (CET1) ratio of 16.8%.
JP Morgan said RHB Bank has seen sharp Source: Bloomberg Source: Bloomberg
shifts in strategies over the last decade which
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
FROM PAGE 3
The pent-up travel demand amid
consumers’ accumulated savings, and
harmonising of entry coordination and
border-crossing requirements within the
Asean region are also expected to boost
this counter.
CGS-CIMB added MAHB will also
greatly benefit from the potential reopening
of China’s borders sometime during 2023.
UOB Kay Hian maintained “buy” with
a TP of RM7.52, while CGS-CIMB set it
at RM7.48 per MAHB share.
Genting Malaysia Bhd
RM
3.1
RM2.76
2.8 RM2.72
2.5
Jan 3, 2022 Jan 3, 2023
Source: Bloomberg
Genting Malaysia Bhd
Genting Malaysia Bhd has achieved 80-
90% of pre-Covid earnings before inter-
est, taxes, depreciation and amortisation
(Ebitda) as of 3Q2022, signalling reopen-
ing recovery is on track, noted JP Morgan.
“Investors should focus on Genting
Group’s balance sheet strength in 2023
as Genting’s standalone net gearing stands
at 177%. Malaysia’s gaming market is 80%
local driven; demand has been strong as
visitation is almost back to pre-Covid,” the
research outfit noted. JP Morgan, however,
said Genting Malaysia still needs to resolve
its labour shortage issue as it is operating
at 60-70% hotel capacity.
Public Investment Bank Bhd threw cau-
tion to the wind on tourism spending, not-
ing the rate of recovery may be slower as
consumer confidence remains weak due
to inflationary pressures with a rising in-
terest rate environment.
“Nonetheless, we believe that gaming
stocks will continue to chalk higher earn-
ings in 1H2023 (first half of 2023), driv-
en by improvement in business volume.
Genting remains our top pick. It should
see stronger contribution from its subsid-
iary Genting Singapore, due to a gradual
relaxation of Covid-19 measures in China
that should lead to higher visitation of Chi-
4 THEEDGE CEO MORNING BRIEF
H O M E
nese tourists,” the research outfit added.
UOB Kay Hian has a TP of RM3.50 on
Genting Malaysia while Public Investment
set it at RM3.28 per share.
QL Resources Bhd
CGS-CIMB and MIDF put QL Resourc-
es Bhd as their top pick in the consum-
er sector, which they believed would be
driven by strong demand for staple prod-
ucts in 2023.
CGS-CIMB said QL Resources will
benefit from the government’s move to
lower cost of living and raise household
disposable incomes, especially for the low-
er- to middle-income earners.
CGS-CIMB added that QL Resources
is a potential beneficiary of China’s relax-
ation of its zero-Covid policy that may be
more evident in 2H2023, as it believes
QL Resources has exposure to Chinese
consumers.
Likewise, MIDF said it believes QL
Resources will benefit from the rising de-
mand for marine products as well as global
shortage of chicken and eggs.
MIDF said its economists anticipate
that private consumption growth will
continue to increase in 2023 at a rate
of 6.6%.
CGS-CIMB has a TP of RM6.50
for QL Resources while MIDF set it at
RM6.30.
QL Resources Bhd
RM
6.0
RM5.56
5.5
5.0
RM4.65
4.5
Jan 3, 2022 Jan 3, 2023
Source: Bloomberg
Yinson Holdings Bhd
UOB Kay Hian chose Yinson Holdings
Bhd as the top stock for the company’s
delivery of existing floating, production,
storage and offloading (FPSO) contracts
and potential new FPSO contract wins.
UOB Kay Hian added that Yinson is
expected to have the highest future earn-
ings growth among the oil and gas (O&G)
stocks under its coverage.
Yinson Holdings Bhd
RM
2.6
RM2.52 RM2.45
2.4
2.2
2.0
1.8
Jan 3, 2022 Jan 3, 2023
Source: Bloomberg
“In detail, its financial year 2023
earnings base may triple to more than
RM1.3 billion by financial year 2026
(with FPSO Agogo becoming oper-
ational), and at our TP this implies a
12 times price-earnings ratio after the
Agogo deal.
UOB Kay Hian set a TP of RM4.45
for Yinson.
AmInvestment Bank said O&G is an
overweight sector expected for robust
earnings growth from elevated oil prices
supported by prolonged supply disrup-
tions and past underinvestment.
“Companies with direct exposure to
the upstream production and the FPSO
subsector would be the biggest beneficiar-
ies,” AmInvestment said.
AmInvestment set a fair value of
RM3.89 for Yinson.
Petronas Chemicals Group Bhd
JP Morgan said the firm is construc-
tive on Petronas Chemicals Group Bhd
(PetChem) based on its exposure to ni-
trogen-based fertilisers in Asean.
The firm expects a higher overall fertil-
iser and methanol (F&M) utilisation for
the financial year 2023, as well as elevat-
ed nitrogen fertiliser prices and demand
during the summer planting season in
January to February 2023, to remain a
key catalyst for PetChem.
“We are overweight on PetChem
thanks to its fertilisers earnings, cheap
gas feedstock, and positive ringgit-depre-
ciation impact,” JP Morgan said.
It also sees the bullish oil price to ben-
efit chemical prices.
MIDF chose PetChem as its top pick
for downstream stocks in the O&G sec-
tor, stating that it believes retail and
commercial fuels to be in high demand
in 2023.
CO N TI N UES O N PAGE 5
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3 5 THEEDGE CEO MORNING BRIEF
H O M E
FROM PAGE 4 In the firm’s Nov 16 note on the
“The petrochemical sub industry is group, MIDF is confident that Dialog
also anticipated to remain robust in our will continue to be resilient amid the
local front, as Pengerang Integrated Com- challenging economic environment af-
plex — the primary hub for petrochem- ter posting a 2.4% year-on-year decline
icals in the region — is expected to be in earnings to RM125.8 million for the
in full operating capacity by mid-2023,” first quarter of the financial year ending
MIDF said. June 20, 2023.
JP Morgan has a TP of RM11 while “Considering that a stable oil price
MIDF set it at RM11.77 for PetChem. trend is expected for 2023, we opined that
the group’s financial performance is on the
right track,” MIDF said.
Petronas Chemicals Group Bhd “We are positive that Dialog will con-
RM tinue to strengthen its competitiveness via
10.5
its storage tank farm business, interna-
tional upstream operations, engineering
and fabrication services, recycled PET
(polyethylene terephthalate) production
9.5 facility, and technology and digital trans-
formation initiatives.”
AmInvestment Bank put a fair value at
RM8.60
RM3.38 for Dialog. Meanwhile, MIDF set
8.5 a higher TP of RM3.70 on Dialog.
RM8.32
Sunway Real Estate Investment Trust
7.5
Jan 3, 2022 Jan 3, 2023 AmInvestment Bank said it had Sun-
way Real Estate Investment Trust (Sun-
Source: Bloomberg way REIT) as its top pick for the per-
ceived overweight REIT sector due to the
group’s diversified investment portfolio,
which encompasses retail malls, hotels,
Dialog Group Bhd offices, a university and hospitals across
AmInvestment Bank placed Dialog Malaysia.
Group Bhd among the firm’s top “buy” It highlighted that Sunway REIT has a
calls as it perceived the improving sector strong occupancy rate which has exceed-
recovery on bullish crude oil prices poised ed 90% in retail assets, as well as stable
to spur recurring services growth with the rental income generated from the REIT’s
group’s strategic Pengerang development services and industrial segments.
to likely bring in new investors. AmInvestment Bank added that Sun-
The firm added that it likes Dialog way REIT is among environmental, social
on the back of its resilient non-cyclical and governance (ESG) champions which
tank terminal and maintenance-based has incorporated sustainable financing
operations. consideration into capital management
MIDF also puts Dialog as its top buy ac- strategies via the issuance of sustainabili-
cording to its 2023 market outlook report. ty-linked bonds.
Dialog Group Bhd Sunway REIT
RM RM
3.0 1.55
RM2.61
RM1.46
RM2.40
2.5 1.45
RM1.34
2.0 1.35
1.25
1.5
Jan 3, 2022 Jan 3, 2023 Jan 3, 2022 Jan 3, 2023
Source: Bloomberg Source: Bloomberg
MIDF said Sunway REIT’s earnings
in 2023 will be underpinned by positive
rental reversion of Sunway Pyramid as well
as higher shopper footfall. It added that
Sunway REIT’s exposure to the hotel in-
dustry will also benefit from the recovery
of the tourism industry in 2023.
Both AmInvestment Bank and MIDF
set a TP of RM1.73 on Sunway REIT.
Inari Amertron Bhd
RM
4.0
RM3.91
3.5
3.0
RM2.62
2.5
2.0
Jan 3, 2022 Jan 3, 2023
Source: Bloomberg
Inari Amertron Bhd
MIDF said its top pick for semiconduc-
tor players is Inari Amertron Bhd given
the company’s exposure in the radio fre-
quency (RF) segment.
Inari belonged in the technology sec-
tor, which MIDF has a positive view of
in 2023.
MIDF said the growth prospects for
the sector stay intact, supported by the
emerging technologies like 5G, Inter-
net-of-Things (IoT), artificial intelligence
(AI), personal computers (PCs), Cloud,
and electric vehicles (EVs).
“We opined that the selldown of the
tech sector might be overdone and there-
by provide opportunities to forward-look-
ing investors to place their investment in
a growth stock,” MIDF said.
Public Investment also retained Inari
as a suggested pick for 2023 amongst the
smaller-capitalised stocks. The bank said it
expects Inari to likely see multi-year growth
stories and earnings stability.
Similar to MIDF, Public Investment
said the management is particularly up-
beat on the RF component outlook with
strong double-digit growth. The bank
also believes Inari for higher earnings
contributions from new product offer-
ings in the assembly of next-generation
phone cycles.
MIDF recommended a TP of RM3.20
for Inari, while Public Investment suggest-
ed RM3.74.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3 6 THEEDGE CEO MORNING BRIEF

H O M E

Despite external headwinds, market

anticipated to fare better in 2023
BY IZZUL IKRAM
Market indices in 2022, YTD, highs and lows
theedgemarkets.com Index Close YTD change (%) 52-week low 52-week high
Dow Jones Industrial Average 33,147.25 -8.78 28,660.94 36,952.65
KUALA LUMPUR (Jan 4):The resurgence S&P 500 3,839.50 -19.44 3,491.58 4,818.62
of Covid-19 cases, China’s zero-Covid pol- Indonesia Jakarta Composite 6,850.62 4.09 6,509.88 7,377.50
icy, Russia’s invasion of Ukraine and the Singapore STI 3,251.32 4.09 2,968.87 3,466.23
US Federal Reserve’s (US Fed) continued South Korea KOSPI 2,236.40 -24.89 2,134.77 3,020.29
hawkish monetary policy stance proved too Thailand SET 1,668.66 0.67 1,517.51 1,718.55
much to handle for the FBM KLCI, which China Shanghai Composite 3,089.26 -15.13 2,863.65 3,651.89
ended 2022 with a decline of 4.6%. Japan Nikkei 225 26,094.50 -9.37 24,681.74 29,388.16
Malaysia was not alone in posting a neg- Philippines PSE 6,566.39 -7.81 5,699.30 7,552.20
ative return as the Philippines’ PSE Index Hong Kong HSI 19,781.41 -15.46 14,597.31 25,050.59
also retreated by 7.81%. However, Singa- Malaysia FBMKLCI 1,495.49 -4.60 1,372.57 1,620.44
pore’s STI registered a positive return of *As at Dec 30, 2022
Source: Bloomberg
4.09%, as did Indonesia’s Jakarta Compos-
ite (4.09%) and Thailand’s SET (0.67%). year, there is a strong possibility for signif-
The year 2023 already appears rife with FBM KLCI in 2022 icant improvement in foreign shareholding
headwinds, including continued inflationary of Malaysia equities, which is only 20.7%
1,700
pressures, softer domestic economic growth, as at end-November 2022,” he said in an
recession fears and uncertainty over the annual strategy report on Dec 20.
global interest rate upcycle. 1,567.53 Kaladher noted that a strong endorse-
Notwithstanding the expected turbu- 1,495.49
ment of Prime Minister Datuk Seri Anwar
lence, market watchers remain positive on 1,500
Ibrahim’s premiership is imperative if Ma-
2023’s prospects as they note that upsides laysia is to face the economic challenges
in the form of China’s potential reopening expected next year. Moreover, it needs to
and recovery, and increased foreign inflows undertake reforms to institutional and gov-
bode well for the local equity market. ernance frameworks for the long-term sus-
Areca Capital Sdn Bhd chief executive 1,300 tainability of the nation. He suggested that
Dec 31, 2021 Dec 30, 2022
officer Danny Wong Teck Meng said that tabling a new budget for 2023 in February
while the external headwinds may spell Source: Bloomberg would allow the government to demonstrate
a challenging period for the local equity its “ability to table a pragmatic short-term
market in the first half of 2023 (1H2023), may be able to continue to grow albeit at a plan to sustain economic resilience amidst
the market is expected to perform better in lower pace of 3% to 4%. the slowing global economy”.
2H2023, cushioned by an expected global “At any point in time the recession would Anwar has since said that Budget 2023
interest downcycle led by the US Fed as not be as deep as in 2020 and 2021, so the is to be tabled in February.
well as China’s reopening. 31/12/2021 1567.53
worst is definitely behind us.We can look for- However, pending clarity on the unity gov-
Wong expects the US Fed to pivot to ward to better quarterly earnings, not for 30/12/2022
all ernment’s 1495.49
policies and reform priorities, RHB
an interest rate downcycle in 2H2023 or sectors, but at least they are not going to be Research analyst Alexander Chia noted that
2024. Domestically, Wong anticipates an- as bad as during 2020 and 2021,” he said. markets will also be keeping a close eye on
other two additional overnight policy rate Low’s optimism is also based on expec- the implications for banks, construction, tele-
(OPR) hikes by Bank Negara Malaysia tations that the stability of Malaysia’s unity communication, energy and gaming sectors.
(BNM) in 1H2023, which he noted will government will attract more foreign direct “The positive impact of emerging cat-
be to the benefit of the banking sector. investment into the country. alyst from greater political clarity, peaking
“On China, I think the lockdown will even- “There is no target for the FBM KLCI, interest rate cycle, and the China re-open-
tually have to be relaxed a bit, and there are but I think it should generally trade higher ing process will be offset by the anticipated
some signs of that already. So I think it is very than 1,500 points next year, possibly hitting surge in positive cases there, investor reac-
likely they can soon open up their economy.” the 1,600 mark,” he added. tion to weaker macroeconomic and cor-
While Wong said that major economies TA Securities Holdings Bhd head of re- porate data points, and persistent foreign
may fall into recession in 2023 as rate hikes search Kaladher Govindan is more bullish funds outflows back to North Asia (and
eat into consumption and private invest- as he has pegged a 1,700 end-2023 target possibly back into fixed income),” the RHB
ment, he was of the view that the Asean for the FBM KLCI based on a calendar analyst said in a note on Dec 16.
bloc should be resilient to external shocks year 2024 (CY2024) price-to-earnings ra- On sectors which are favoured in 2023,
given their lower reliance on the West, cou- tio (PER) of 14.5 times, which is a -0.5 market watchers listed the banking, retail
pled with the prospect of potential support standard deviation from a long-term mean and healthcare sectors as well as real estate
from China when China reopens. of 15.9 times and a 14.7% discount to av- investment trusts (REITs).
Malacca Securities head of research Loui erage five-year forward PER of 17 times.
Low Ley Yee concurred and said that while “As Malaysia’s economy is expected to
the US and European economies experi- be resilient due to robust domestic activities Read also: Bursa expects short-term
ence a contraction, the Malaysian economy despite an expected global slowdown next market volatility in 2023
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
SunCon bags
RM1.7 bil
data centre
construction job
BY IZZUL IKRAM
theedgemarkets.com
KUALA LUMPUR (Jan 3): Sunway Construc-
tion Group Bhd (SunCon) has entered into a
RM1.7 billion contract to provide general con-
tractor services for a data centre construction
project in Sedenak Tech Park (STeP), Johor.
The construction firm’s wholly owned sub-
sidiary Sunway Construction Sdn Bhd entered
into the contract with Yellowwood Properties
Sdn Bhd on Dec 31, 2022, according to Sun-
Con’s filing on the same day.
SunCon noted that the contract’s scope of
Gamuda buys RM360 mil Rawang land for
mixed development with RM3.3 bil GDV
BY CHESTER TAY
theedgemarkets.com
KUALA LUMPUR (Jan 3): Gamuda
Bhd’s unit is acquiring eight parcels of
freehold land in Rawang collectively span-
ning 532 acres for RM360 million.
Gamuda said its wholly owned subsid-
iary Gamuda Land (Botanic) Sdn Bhd is
buying these lands from Kundang Prop-
erties Sdn Bhd for a mixed development
with a gross development value of RM3.3
billion over a 10-year period.
Gamuda said the land acquisition is
synergistic to the group since the lands
are located next to its existing 810-acre
Gamuda Gardens township in north Sun-
gai Buloh and are easily accessible via
three major expressways, namely North-
South Expressway, LATAR Highway, and
Guthrie Corridor Expressway.
“The development of the subject land
following the Kundang Jaya acquisition
is planned as an extension of the existing
Gamuda Gardens township and aims to of-
fer Gamuda’s branded homes with the right
product concept and price to differentiate
from other developers,” said the group in a
Bursa Malaysia filing on Tuesday (Jan 3).
Gamuda said the acquisition, which is
estimated to be completed by the end of the
second quarter this year, will be funded by
internally generated funds and borrowings.
7 THEEDGE CEO MORNING BRIEF
H O M E
works includes: design and build for piling and
structural precast concrete works; data centre
main building architecture works; mechanical
and electric services, telecommunications, con-
trol and security installation and associated
works, including primary plant; and external
ancillary works consisting of roads, surface wa-
ter drainage, sewer drainage, external water
reticulation, external mechanical and electrical
services, fencing, gates and landscape works.
“The works are expected to be complet-
ed by the third quarter of 2024 (3Q2024),”
SunCon said.
SunCon said that barring any unforeseen cir-
cumstances, the contract is expected to contribute
positively to the group’s earnings for the financial
year ending Dec 31, 2023 (FY2023), onwards.
“The total new projects secured by the
group this year (2022) including the above-
mentioned works amounted to RM2.6 bil-
lion,” SunCon added.
Shares in SunCon ended three sen or 1.92%
higher at RM1.59, giving the construction group
a market capitalisation of RM2.06 billion.
Commenting on the acquisition, Gamu-
da Land’s chief executive officer Chu Wai
Lune said this acquisition will strengthen the
group’s presence in northern Klang Valley
where it has already developed and invested
substantially in Gamuda Gardens.
“Today, we see an overall average up-
take of more than 90% for all landed prop-
erties launched here since 2017. The new
acquisition will help to replenish Gamuda
Land’s landed residential offerings in the
area as a continuation to the success of
Gamuda Gardens. We anticipate a greater
uptake for our future products with the
upcoming retail, leisure and commercial
properties in the next two years to tailor
for the burgeoning market in this area,”
he said in a statement on Tuesday (Jan 3).
“The new acquisition will unlock toll-free
access from Gamuda Gardens to Rawang
town, which will drive traffic to and from
Gamuda Gardens and bring in substantial
footfall.With this connectivity, the retail, lei-
sure and commercial activities in the town-
ship can benefit from a wider catchment. At
the same time, our residents from both par-
cels will have easy access to all the amenities
within a short distance away,” he added.
Gamuda said purchasers of Gamuda
Gardens have seen an increase in their
investment, with the first phase of terrace
homes, launched in 2017, transacting up
to 20% appreciation today.
Kejuruteraan
Asastera bags
RM230 mil
EPCC job
from PetGas
BY SURIN MURUGIAH
theedgemarkets.com
KUALA LUMPUR (Jan 3): Kejuruteraan
Asastera Bhd has secured a letter of award
(LOA) from Petronas Gas Bhd’s (PetGas)
unit Regas Terminal (Lahad Datu) Sdn
Bhd for the engineering, procurement,
construction, and commissioning (EPCC)
of a 52-megawatt (MW) power plant and
its associated facilities in Sabah.
In a statement to Bursa Malaysia on
Tuesday (Jan 3), Kejuruteraan Asastera
said the LOA awarded to its unit KAB
Energy Holdings Sdn Bhd is for a pow-
er plant located at the Sipitang Oil and
Gas Industrial Park and will be the sole
source of energy supply to Petronas’
upcoming floating liquefied natural gas
(ZLNG) project.
It said the ZLNG plant, slated to be
Sabah’s first near-shore natural gas fa-
cility, has a minimum capacity of two
million tonnes per annum.
The contract is for a total non-es-
calating all-inclusive fixed lump sum of
RM230 million.
Kejuruteraan Asastera managing di-
rector Datuk Lai Keng Onn said securing
the project award from PetGas amplifies
Kejuruteraan Asastera’s sustainable en-
ergy initiatives undertaken since 2019.
“The power plant, upon completion,
will be the single largest gas engine plant
in the country, and serve as a crucial
power source for Petronas’ upcoming
ZLNG plant.
“Furthermore, our joint feasibility
studies with PGB (PetGas) show that the
power plant is reliable and will achieve
significant carbon reduction,” he said.
EPCC works for the power plant will
commence in the second quarter of 2023
and is targeted to be completed in the
first quarter of 2026.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
Bursa Malaysia
amends rules to
facilitate market
operations on
surprise holidays
BY SURIN MURUGIAH
theedgemarkets.com
KUALA LUMPUR (Jan 3): Bursa Ma-
laysia Bhd has made amendments to
its Business Rules and Listing Require-
ments to facilitate the continued oper-
ations of Bursa Malaysia and its sub-
sidiaries on days declared as surprise
holidays.
A “surprise holiday” refers to a public
holiday declared in the Federal Territo-
ry of Kuala Lumpur that has not been
gazetted as a public holiday at the start
of the calendar year.
The amendments will become effec-
tive on Jan 10, 2023.
In a statement on Tuesday (Jan 3),
Bursa Malaysia said the amendments
were made in response to instances of
unplanned or unanticipated holidays
that took place in Kuala Lumpur in re-
cent times.
It said that by remaining open on a
surprise holiday, Bursa Malaysia will en-
sure that all transactions that occurred
prior to the surprise holiday can and will
be delivered and settled as scheduled.
It said this would accord greater cer-
tainty to the capital markets and miti-
gate any potential market or investment
risk that investors may face as a result
of the surprise holiday.
The stock exchange operator said
that pursuant to the amendments, if
Bursa Malaysia operates on a surprise
holiday, a regulated person must comply
with, and give effect, to the rules or any
requirements imposed by Bursa Malay-
sia on such day, or within the stipulated
time frame that falls on or includes the
surprise holiday.
Bursa Malaysia said it will be pru-
dent and exercise due care in deciding
whether to remain open on a surprise
holiday, after consulting the relevant
authorities.
The exchange will only remain open
subject to the Real-Time Electronic
Transfer of Funds and Securities Sys-
tem (RENTAS), which is the financial
market infrastructure, being operational
on the surprise holiday, in order to facil-
itate the clearing and settlement service.
8 THEEDGE CEO MORNING BRIEF
H O M E
SC announces two
new managing
directors in
Kamarudin
Hashim and
Azalina Adham
BY SUFI MUHAMAD
theedgemarkets.com
KUALA LUMPUR (Jan 3): The Securities
Commission Malaysia (SC) on Tuesday (Jan
3) announced the appointment of Kamaru-
din Hashim and Datin Azalina Adham as its
new managing directors effective Jan 1, 2023.
“As managing directors, Kamarudin and
Azalina will assist the SC chairman in setting
the overall strategic direction of the Malaysian
FMM hopes to
see greater R&D
incentives in
Budget 2023
Bernama
KUALA LUMPUR (Jan 3): The Federa-
tion of Malaysian Manufacturers (FMM)
has called upon the Government to continue
supporting research and development (R&D)
and innovation initiatives via greater alloca-
tion of financial assistance, incentives and
initiatives in the upcoming Budget 2023.
Such support includes the liberalisation of
the double deduction tax incentive for R&D
expenses by allowing an automatic deduction
with no threshold and time bar, extended to
all companies including mid-tier and larger
companies to spur innovation and creativity.
“Innovation and R&D play a critical
role for industries and countries as they
are game changers in achieving high eco-
nomic growth,” said FMM president Tan
Sri Soh Thian Lai (pic).
At the same time, in line with Prime Min-
ister Datuk Seri Anwar Ibrahim’s pledge to
improve the Government’s service delivery,
the relevant agencies must grant faster ap-
provals for applications relating to R&D in-
centives, as speed is of the essence to the
success of new product/service development
and commercialisation, he said.
capital market, and in overseeing the SC’s
dual mandate of capital market regulation
and development,” the commission said in a
press statement. “In addition, both Kamaru-
din and Azalina will continue to oversee their
current portfolios of market and corporate
supervision (Kamarudin), and strategy and
policy (Azalina) respectively.”
Deputy chief executive Datuk Zainal
Izlan Zainal Abidin, who informed the SC
of his departure in October 2022, will step
down on Jan 11 to pursue other interests
after 12 years of service.
SC chairman Datuk Seri Dr Awang
Adek Hussin thanked Izlan for his service
and contributions to the development of
the capital market.
“Datuk Zainal Izlan has helped lead
the growth of the Islamic capital market,
and the SC’s Sustainable and Responsible
Investment agenda, both in Malaysia and
abroad,” said Awang.
“On behalf of the board and staff of the
SC, I wish him the best in his future en-
deavours.”
SHAHRILL BASRI/ THEEDGE
Soh also emphasised that the key to en-
hancing service levels is improving produc-
tivity levels, and this can be achieved with
greater levels of innovation such as digitali-
sation, which would shorten waiting time, re-
duce cost and do away with the discretionary
powers of officers to approve applications.
Representing over 11,600 member
companies from the manufacturing sup-
ply chain, the FMM is actively engaged
with the Government and its key agencies
at the federal, state and local levels.
Read also:
MITA wants clearer SOP ahead of
China tourist arrivals
Loan growth down to 5.5% y-o-y in
November dragged by business loans
Bung Moktar, wife granted another stay
from entering defence in graft trial
 w e d n e s d a y J AN U A R Y 4 , 2 0 2 3 9 TheEdge CEO morning brief

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 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
Hextar Tech rallies
to new high as
former BNM
governor joins
as chairman
BY PRIYATHARISINY VASU
theedgemarkets.com
KUALA LUMPUR (Jan 3): Shares in
Hextar Technologies Solutions Bhd ral-
lied to an all-time high on Tuesday (Jan 3),
ostensibly on the unexpected appointment
of former Bank Negara Malaysia (BNM)
governor Tan Sri Muhammad Ibrahim as
its independent non-executive chairman.
Additionally, the company’s controlling
shareholder Datuk Eddie Ong Choo
Meng was made group chief executive
officer while Choo Joon Keong was ap-
pointed as its group deputy CEO and an
executive director, according to its Bursa
Malaysia filings.
The counter gained RM2.78 or 16% to
close at RM19.84 a share, giving the compa-
ny a market capitalisation of RM2.55 billion.
Trading volume was rather thin at 502,800
shares, but it was higher than the average.
In the last one year, the share price of
Hextar Technologies, in which Ong con-
trols a 71.47% stake, has jumped by nearly
780%. He holds a direct interest of 16.70%,
and an indirect stake of 54.77% via his
investment vehicle Hextar Tech Sdn Bhd.
KUALA LUMPUR (Jan 3): Packaging
solutions provider L&P Global Bhd made
an impressive debut on the ACE Market of
Bursa Malaysia on Tuesday (Jan 3), open-
ing at 42 sen over its initial public offer-
ing (IPO) price of 30 sen a share before
closing even stronger.
Over the day its share price climbed to
53 sen and finished at 54.5 sen for an 82%
premium over its offer price, boosting its
market capitalisation to RM305.2 million.
Trading volume opened at 19.98 mil-
lion, and by the day’s end had reached
255.37 million shares, making L&P Glob-
al the third most actively traded company
on the bourse on Tuesday.
L&P Global has a dividend policy to
pay out between 20% and 50% of its an-
nual audited net profit.
Executive director cum chief executive
office Ooi Lay Pheng said the listing status
and funds raised will enable the group to
expedite its expansion plans.
10 THEEDGE CEO MORNING BRIEF
H O M E
According to Bloomberg data, Hextar
Technologies, which is in the midst of find-
ing a technology-related business, has a
total of 128.65 million shares outstanding,
of which 19.2 million shares or 15.3% are
free float.
Ong, who has been making waves in the
corporate sector, was previously an exec-
utive director of Hextar Global Bhd, as
well as a non-independent non-executive
director of Hextar Industries Bhd and Hex-
tar Healthcare Bhd, which was formerly
known as Rubberex Corp (M) Bhd.
Recently, he relinquished his director-
ships in the companies.
Under Ong, Hextar group now holds
substantial stakes in nine listed companies,
with a combined market capitalisation of
over RM8 billion.
The appointment of Muhammad, who
is also known as MI, follows the resignation
of Datuk Iskandar Sarudin as the compa-
ny’s independent non-executive chairman.
Muhammad was the eighth governor of
BNM, a position he held from 2016 to 2018.
He joined the central bank in 1984, and
was appointed as an assistant governor in
2004. He was subsequently appointed as
the deputy governor in 2010 and held the
position until 2016, when he was appoint-
ed as the governor.
During his tenure, Muhammad served
in the areas of bank regulation and supervi-
sion, strategic planning, payment systems,
insurance, offshore banking and treasury
as well as financial markets.
Meanwhile, Choo is a career banker and
last held the position of the CEO of the
Malaysian subsidiary of a Thailand-based
regional bank.
L&P Global
makes strong
debut on
ACE Market
BY SUFI MUHAMAD
theedgemarkets.com
“At our utilisation rate for the sev-
en-month period ended July 31, 2022
of approximately 90%, we need to ready
ourselves with additional capacity to take
on new businesses,” she told the media at
the listing event on Tuesday.
The group raised RM33.9 million
from the IPO exercise, with RM13 mil-
lion representing 38.4% deployed as
working capital.
Pesona Metro’s
minority
shareholders
advised to reject
takeover offer
BY KANG SIEW LI
theedgemarkets.com
KUALA LUMPUR (Jan 3): Minori-
ty shareholders of construction out-
fit Pesona Metro Holdings Bhd have
been advised by independent adviser
UOB Kay Hian Securities (M) Sdn
Bhd to reject the mandatory takeover
offer launched by its substantial share-
holders Wie Hock Kiong, Kombinasi
Emas Sdn Bhd and persons acting in
concert (PACs), who collectively hold
59.99% of Pesona Metro shares, to ac-
quire the remaining shares at 19 sen
each or RM52.83 million.
Hock Kiong is a non-independent
non-executive director of Pesona Metro.
In an independent advice circular
filed with Bursa Malaysia on Tuesday
(Jan 3), UOB Kay Hian is of the view
that the offer is “not fair and not rea-
sonable” and recommended that share-
holders reject the offer.
It said the offer is not fair after tak-
ing into consideration that the offer
price represents a discount of 17% to
18.5% to the estimated value of Pesona
Metro shares of between 22.9 sen and
23.3 sen based on the sum-of-the-parts
valuation method.
The adviser also highlighted that
it is the intention of Hock Kiong and
PACs to maintain the listing status of
Pesona Metro on the Main Market of
Bursa. “Notwithstanding that the his-
torical trading volume of Pesona Met-
ro shares are relatively illiquid in the
past 12 months up to Nov 29, 2022,
the holders, especially those who hold
small blocks of Pesona Metro shares,
may still have the opportunity to dispose
[of] their shares in the open market sub-
sequent to the closing date,” it added.
The offer will remain open for ac-
ceptances until Jan 11, 2023.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
Robin Tan resigns as 7-11 Malaysia
chairman
KUALA LUMPUR (Jan 3): 7-Eleven
Malaysia Holdings Bhd chairman Datuk
Seri Robin Tan Yeong Ching has stepped
down “to pursue other interests”. He is
succeeded by Farhash Wafa Salvador,
the former political secretary to Prime
Minister Datuk Seri Anwar Ibrahim. Tan,
the son of 7-Eleven’s major shareholder
Tan Sri Vincent Tan Chee Yioun with a
41.8% stake, was appointed to the group’s
board as chairman, non-independent non-
executive director on Nov 25, 2021.
— by Chester Tay
G Capital’s secures contract
extension with Mindef
KUALA LUMPUR (Jan 3): G Capital
Bhd said its two-year contract for the
chartering of school buses for the children
of armed forces personnel has been
extended by another year at an additional
value of RM8.41 million. The contract
with the Ministry of Defence (Mindef)
now ends on Dec 31, 2023, with the total
value rising to RM52.64 million from
RM44.23 million. The group’s wholly-
owned unit, GPB Corp Sdn Bhd, signed the
supplemental agreement with Mindef on
Dec 30. — by Hailey Chung
MAG plans RM36 mil private
placement to fund prawn farm
expansion
KUALA LUMPUR (Jan 3): MAG Holdings
Bhd has proposed a private placement
of up to 10% of its total issued shares to
partly fund the expansion of its prawn
farm in Tawau, Sabah. The aquaculture-
based food producer said it expects to
raise up to RM35.51 million based on a
placement size of 212.88 million shares
— assuming outstanding warrants are
exercised — at an illustrative issue
price of 16.68 sen apiece. MAG has
earmarked 85.18% of the proceeds,
or RM30.25 million, to partly fund the
11 THEEDGE CEO MORNING BRIEF
H O M E
NEWS IN BRIEF
Petra Energy secures 22-month
contract extension with Petronas
KUALA LUMPUR (Jan 3): Petra Energy
Bhd’s contract for the provision of services
to operate and maintain Petroliam
Nasional Bhd’s (Petronas) Banang oilfield
off Terengganu has been extended by 22
months until Aug 6, 2024. Petra Energy said
its wholly-owned subsidiary Petra Energy
Development Sdn Bhd (PEDSB) has entered
into a supplementary agreement with
Petronas relating to the technical services
agreement first awarded in June 2020 for
a duration of two years. Petra Energy did
not disclose the value of the supplementary
agreement. The group’s original two-year
contract carried an estimated value of
US$40 million. — by Izzul Ikram
Bintai Kinden secures added
subcontracts worth RM4 mil
KUALA LUMPUR (Jan 3): Bintai Kinden
Corporation Bhd has secured additional
subcontracts worth RM4 million to
supply carbon steel piping, valves and
piping accessories to various oil and gas
(O&G) businesses. The company said
its 51%-owned sub-subsidiary Bintai
Energy Sdn Bhd (BESB) has secured the
subcontracts from Petro Flanges and
Fittings Sdn Bhd (PFF). The value of
accumulated subcontracts secured through
PFF, in which BESB is the identified special
purpose vehicle for the supply of materials
to the O&G industry, is now RM12.9
million. — by Priyatharisiny Vasu
expansion of its Wakuba Farm in Tawau.
Meanwhile, MAG will allocate RM5
million (14.08%) for working capital
requirements, and RM262,000 (0.74%)
to defray the estimated expenses
related to the proposed private
placement. — by Izzul Ikram
Tourism minister Tiong King Sing
steps down as Timberwell MD
KUALA LUMPUR (Jan 3): Tourism, Arts
and Culture Minister Datuk Seri Tiong
King Sing has resigned as Timberwell
Bhd’s managing director (MD) and
executive director with immediate effect,
citing “other personal commitment”. The
61-year-old was made MD of the forest
management and timber logging company
upon his appointment to the board in
March 2017. Tiong owned a 23.8% stake
in Timberwell as at March 31 last year,
according to the group’s latest annual
report. — by Chester Tay
Hektar REIT announces 5.3 sen
distribution per unit for 4Q
KUALA LUMPUR (Jan 3): Hektar Real
Estate Investment Trust (Hektar REIT)
has announced a final income distribution
of 5.3 sen per unit for the fourth quarter
ended Dec 31, 2022, taking its total
distribution for the financial year 2022 to
eight sen per unit. However, the date of
payment has yet to be decided, according
to its Bursa Malaysia filing. The REIT,
which is under the management of Hektar
Asset Management Sdn Bhd, also said that
an income distribution reinvestment plan
(IDRP) will be applied to the final income
distribution, and that the gross electable
portion has been set at 5.3 sen per unit.
— by Sufi Muhamad
Read also:
Focus Point to be transferred to Main
Market on Jan 5
Kedah NFO outlet closures negative
for sentiment, says CGS-CIMB
EUROCHAM Malaysia urges
govt to restart free trade agreement
negotiations
MIDF: Foreign funds offloaded
RM205m in final week of 2022
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3 12 THEEDGE CEO MORNING BRIEF

H O M E

Where do tailwind and

headwind blow in 2023?
As investors bid goodbye to 2022, a year when equity prices lost ground as interest rates headed
higher, we now take a look at the industry sectors that are likely to perform on favourable
tailwinds and those that are facing challenges in 2023

Sectors facing tailwinds

O&G: A golden year ahead with more
jobs, better rates
The continued pick-up in activities in the
local upstream oil and gas (O&G) sector
pointed towards more jobs and potentially
better rates across segments from drilling
to offshore fabrication, offshore support
vessels (OSV) charters, and for those in-
volved in maintenance, construction and
modification (MCM) works as well.
“We believe 2023 will be a golden
year for the oil and gas service providers
(OGSE) — a laggard to the elevated oil
price environment for the past year,” HLIB
Research said in a Dec 20 report, following
higher activities guided in the recent Pet-
ronas Activity Outlook (PAO) 2023-2025.
Analysts highlighted that the upside in
activities will benefit rig operator Velesto
Energy Bhd, hydraulic workover unit op-
erator Uzma Bhd, MCM player Dayang
Enterprise Holdings Bhd, as well as OSV
operators Perdana Petroleum Bhd and
Icon Offshore Bhd — both of which have
undertaken steps to clean up their previ-
ously overgeared balance sheet.
Meanwhile, CGS-CIMB Research
pointed out that the focus next year will be
on floating production storage offloading
(FPSO) players which are largely overseas,
with companies like Yinson Holdings Bhd
and Bumi Armada Bhd benefiting from
potentially higher capex spending by oil
majors, and a healthy job pipeline.
In the downstream segment, analysts
are of the view that the petrochemicals su-
percycle has ended as product spreads have
come off their respective peaks, which is
negative to Malaysia’s leading petrochemi-
cals player Petronas Chemicals Group Bhd.
However, Kenanga Research said it still en-
joys “favourable feed-cost structure” with
its parent Petronas, while peers “may be
hampered by volatile input costs”.
Analysts are also largely expecting
oil prices to remain elevated, albeit with
downside risks stemming from recession
and demand fears, and the uncertainty
surrounding the Russia-Ukraine conflict.
BY ADAM AZIZ, ISABELLE FRANCIS,
SYAFIQAH SALIM & IZZUL IKRAM
theedgemarkets.com
At current price levels, a clear beneficiary
would be O&G field operators, while local
gas station operators like Petronas Da-
gangan Bhd could see short-term head-
winds in the form of potentially delayed
payments from the government for petrol
subsidies.
Aviation Sector: Signs of a
turnaround emerge as demand
reaches pre-pandemic levels by 2023
The aviation sector had three tumultuous
years as the Covid-19 pandemic caused a
major disruption in air travel.
However, signs of a turnaround are
emerging, with projections indicating that
by 2023, the aviation sector will be earn-
ings positive as demand for air travel is ex-
pected to reach near pre-pandemic levels.
The Malaysian Aviation Commission
(Mavcom) reported that passenger traffic
in the third quarter of 2022 reached 15.6
million — the highest point since the pan-
demic began — due to the reopening of Ma-
laysia’s international borders in April 2022.
In line with global passenger traffic re-
covery, the Commission anticipates that air
passenger traffic in 2023 will grow between
40% and 52% year-on-year, translating
into between 74.6 million and 80.8 million
passengers compared with the pre-pan-
demic number of 109.3 million passengers.
Growth for 2023 will be driven by the
gradual restoration of key markets begin-
ning 4Q22, with local carriers, namely Ma-
laysia Airlines, AirAsia, AirAsia X and Batik
Air, having made plans to restore capac-
ity and increase frequency, in relation to
popular destinations such as Hong Kong,
Japan, Taiwan, Australia and the Middle
East. China recently scrapped its quaran-
tine rule for inbound travellers, essentially
ending the Zero-Covid policy.
Analysts said the lower price of jet fuel
is generally positive for the sector as jet fuel
costs account for 30% to 50% of airlines’
operating cost structure.
Furthermore, they believe a (projected)
weakening of the US dollar (USD) against
other regional currencies, including the
ringgit, would provide a boost to the sector.
Stocks to watch in this sector include
Malaysia Airport Holdings Bhd and Capi-
tal A Bhd. Analysts expect MAHB to break
even in 4QFY22, driven by improving air
travel demand and international air travel
mix for Malaysia and Turkey operations.
The airport operator’s FY23 earnings
are expected to be boosted by higher air
travel demand and airlines’ capacities.
Meanwhile, Capital A is expected to
benefit from the favorable RM/USD ex-
change rate, jet fuel prices and full 205
fleet of operating aircraft by mid-2023 (103
aircraft as at 3QFY22), enabling the group
to take advantage of increasing air travel
demand.
Nevertheless, the group is still under
PN17 status. Capital A’s management
plans to distribute in specie shares of Avi-
ation Group — previously AAX — to its
shareholders through a share swap exercise
to maintain AAX’s listing status. Hence
shareholders of Capital A will subsequent-
ly own shares in Capital A and Aviation
Group (airlines).
CO N TI N U ES O N PAG E 13
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
Sectors facing headwinds
Chip demand downcycle to haunt
technology sector in 2023
Market watchers believe the global sem-
iconductor sector’s demand downcycle
that started this year is expected to per-
sist into 2023, much to the pain of the
local technology sector.
TA Securities Holdings Bhd head of
research Kaladher Govindan remained
“neutral” on the semiconductor sector
and expects the demand downcycle to
continue for most of 2023, underpinned
by expectations for slowing global eco-
nomic growth with recessionary risk and
softer demand from the computer, com-
munications and consumer markets.
“Beyond near-term headwinds, we re-
main optimistic about the semiconductor
sector’s mid-to-longer term growth pros-
pects. We expect its next leg of growth to
be fuelled by the ongoing acceleration
FROM PAG E 12
Tourism, hospitality and retail to
benefit from reopening of borders
The tourism, hospitality and retail sec-
tors are anticipated to benefit from the
reopening of domestic and international
borders, as well as the relaxation of Cov-
id-19 restrictions in China.
This is projected to create new job op-
portunities, stimulate demand for goods and
services, and support domestic consumption.
TA Securities Research maintains its
buy recommendation on hospitality stocks
such as Genting Malaysia Bhd and Gen-
ting Bhd, with respective target prices of
RM3.20 and RM6.13, citing the promis-
ing outlook for the sector.
“All in all, we continue to believe the
outlook for the tourism sector, especially
travel and hospitality, is promising as peo-
ple are desperate to travel amid a shortage
of flight capacity,” it said.
In the consumer (retail) sector, there is
concern that the government may not be
able to provide further cash handouts and
wage subsidies to further boost consumer
spending, due to tight fiscal constraints
and the rising interest rate environment
are expected to result in lower disposable
income.
Nonetheless, the consumer sector is
expected to remain resilient due to the
subsided fuel and electricity costs, and
low unemployment rate, according to JP
Morgan Chase & Co.
Meanwhile, Hong Leong Investment
13 THEEDGE CEO MORNING BRIEF
H O M E
BY IZZ UL IKRAM, SYAFIQAH SALIM,
CHESTER TAY & LAM JIAN WYN
theedgemarkets.com
in digitalisation and the proliferation of
secular technology trends, including 5G,
artificial intelligence, cloud computing, the
internet of things, robotics, and vehicle
electrification, among others.
“For reference, the semiconductor sec-
tor is one which is cyclical in nature, with
boom-and-bust cycles typically correlating
with global growth but exhibiting growth
over the longer term,” Kaladher said in an
annual strategy report on Dec 20.
Malacca Securities Sdn Bhd head of
research Loui Low Ley Yee has a mixed
view on the semiconductor and technology
sector, similarly holding the belief that the
demand downcycle is expected to contin-
ue in 2023.
Bank (HLIB) Research believes companies
that can pivot and provide more conveni-
ence to customers will have an advantage
in the market.
It expects the consumer sector to con-
tinue its solid performance due to robust
domestic demand, supply chain improve-
ment that would ease restocking activities,
and stabilisation of profit margins as com-
modity prices will trend lower following
price hikes in 2021-2022.
Among the most popular stocks are Mr
DIY Group (M) Bhd, Berjaya Food Bhd,
QL Resources Bhd, Fraser & Neave Hold-
ings Bhd and Aeon Co (M) Bhd given their
defensive nature.
Meanwhile, Public Invest Research
said the resurgence of the tourism indus-
try would likely lead to additional jobs and
stimulate demand for the sector’s goods
and services, supporting the country’s do-
mestic demand.
Considering Malaysia is the second
most popular vacation destination for
Chinese visitors after Thailand, China’s
reopening will be vital to the prognosis
for the country’s consumption, it said in
a note dated Dec 16.
Banking sector tailwinds to wane in
2023, but banks remain undervalued
After a year helped by tailwinds in the form
of interest rate hikes and Malaysia’s strong
economic recovery, market watchers expect
the sector to be void of positive catalysts to
drive up share prices in 2023.
“So in the next few quarters we are
going to see some slower numbers,” he
said, but noted that he foresees this cy-
cle to not prolong for too long and ex-
pects recovery in the second half of 2023
(2H2023).
Pending this recovery, Low also
warned that the sector’s earnings may
take a hit in the coming two to three
quarters due to the stronger local note
versus the greenback, which may result
in flattish earnings and could be per-
ceived by market participants as a slow-
down in the technology sector.
“So all in all, I have a mixed feeling
on the semiconductor and tech sector.
Those technology companies that are
still making 10% to 20% earnings growth
in terms of q-o-q (quarter-on-quarter),
I think they are still quite alright.”
CO N TI N UES O N PAG E 14
“We expect banking stocks to trade largely
sideways in 1H2023 since the appetite for
the sector has diminished on a waning out-
look.The broader market sentiment remains
jittery due to increasingly hawkish central
banks around the world, which raises the
probability (of banking stocks trading side-
ways),” HLIB Research analyst Chan Jit
Hoong said in a note on Dec 19.
“Furthermore, the tailwinds that were
supposed to be enjoyed by banks (like big
net-interest margin expansion, strong cred-
it growth) over FY2022-23 have instead
been frontloaded to this year, turning the
next 12 months less exciting,” he added.
Chan remains ‘neutral’ on the bank-
ing sector as his research house sees a de-
cent operational outlook for the sector in
1H2023 and FY2023 sector profit is pro-
jected to expand by 14.5%, thanks to the
absence of the prosperity tax.
“That said, the sector’s risk-reward pro-
file is balanced, in our view, given dissipat-
ing tailwinds are soothed by inexpensive
valuations,” he said.
MIDF Research concurred that the
banking sector’s tailwinds are diminish-
ing, but maintained its “positive” call on
the sector noting that while the valuations
are no longer as attractive, not all shares
are fully priced in.
“Even though tailwind effects are thin-
ning out, dividend yields offer a safe alter-
native to riskier sectors,” MIDF Research
said in its 2023 Market Outlook report
dated Dec 7, 2022.
 W E D N E S D AY J A N U A RY 4 , 2 0 2 3
FROM PAG E 13
Headwinds ahead for plantation
sector
It’s been a roller coaster ride for the
plantation sector in 2022. Daily CPO
prices have fallen more than 51% since
their peak on May 2 (RM8,076.50 per
tonne) to RM3,899 per tonne on Dec
23, amid a possible end to the Rus-
sia-Ukraine conflict and easing of In-
donesia’s palm oil export ban.
Some plantation analysts noted that
2023 is going to be a difficult year for
the sector amid expectations of lower
CPO prices ahead.
CGS-CIMB Research analyst Ivy Ng
Lee Fang predicts that the average CPO
prices will not reach the RM5,000 to
RM6,000 level in 2022, and that the
attractive dividend yield of plantations
may not sustain in 2023.
She forecasts average CPO prices to
fall to RM3,800 per tonne in 2023 from
RM5,122 per tonne in 2022. Meanwhile,
the average dividend yield of plantation
companies tracked by CGS-CIMB was
4.8% in 2022; it is expected to fall to
3.4% in 2023.
“We advise investors to be selective
in the sector and we would not recom-
mend people to ‘sell’ [plantation stocks]
at the current low price levels. There is a
lack of catalysts to drive the stock price
higher for the time being,” said Ng, who
maintained a ‘neutral’ call for the sector.
On the other hand, TA Securities Re-
search analyst Angeline Chin said mar-
ket sentiment is still highly uncertain
and slowing economies are clouding the
outlook for edible oils.
“We will need to monitor the market
conditions closely, especially on reces-
sionary risks in EU and US and China’s
border reopening in 2023,” said Chin in
a note dated Dec 14.
Nonetheless, the analyst, who reiter-
ated her ‘neutral’ call, does not expect
CPO prices to see a major correction as
the price will be supported by the weak-
ening of ringgit against the US dollar,
which will increase the competitiveness
of Malaysia’s CPO exports.
Automotive sales set to cool but
several factors will mitigate the
softening
2022 is likely a record high year for ve-
hicle sales, thanks to the extension of
sales tax exemption. But sales are like-
ly to soften in 2023 amid rising interest
rates and concerns over a global econom-
ic slowdown, which may see consumers
deferring purchases of big ticket items
like cars.
14 THEEDGE CEO MORNING BRIEF
H O M E
Still, factors such as a stronger ringgit
against the US dollar and Japanese yen,
an easing of commodity prices, a spill over
of backlog orders, and new launches may
mitigate the softening.
RHB Research Jim Lim Khai Xhiang,
who placed the sector on ‘neutral’, noted that
while bookings from July onwards — which
are no longer eligible for sales tax exemption
— have slowed, most marques are seeing
gradual month-on-month improvements
as consumers adapt to the adjusted prices.
“Orders for some marques are back to
levels recorded earlier in the year, as new
product launches are driving these orders.
For example, Perodua’s current 200,000
order backlog is partially driven by the new
Alza, which is proving to be very popular,”
he said in a report dated Dec 16.
AmInvestment Bank, which is ‘over-
weight’ on the sector, also noted that the
recent strengthening of the ringgit against
the US dollar bodes well for carmakers by
lowering imported costs as parts and kits
are sourced from overseas.
Key beneficiaries include Tan Chong
Motor Holdings Bhd and UMW Hold-
ings Bhd for exposure to greenbacks while
Bermaz Auto Bhd is set to enjoy a higher
ringgit against Japanese yen, the investment
bank said in its Dec 14 report.
MIDF Research, in a Dec 7 report, said
easing of commodity prices like steel and
aluminium should help lower carmakers’
costs. “Additionally, easing global supply
chain tightness should progressively lower
logistics costs going forward, as seen by the
easing in global freight rates and shipping
costs,” it said.
The research house also said the auto-
motive sector’s valuation remains depressed,
with share prices still below pre-pandemic
levels, notwithstanding their significant earn-
ings recovery in 2022.
As investors appear to still be sceptical
on the sector’s outlook — particularly
demand after expiry of tax holiday — it
will be interesting to see if these tail-
winds would help sustain TIV in 2023
when prospects of a global economic
downturn loom.
Analysts mixed on property outlook
in 2023
Analysts do not have a consensus posi-
tive or negative outlook for the property
sector in 2023, as some believe that the
worst is over, while others point to fur-
ther challenges.
RHB Research’s Loong Kok Wen is
overweight on the sector as she believes
that Bank Negara Malaysia’s interest rate
hikes next year will be less aggressive
than the 100bps increase logged this
year, while political risks have largely
dissipated after the latest special Par-
liamentary sitting, with Prime Minister
Datuk Seri Anwar Ibrahim winning a
vote of confidence in the Dewan Rakyat
via a voice vote.
She said when developers released their
numbers in the third quarter of 2022, it
was interesting to see that the quarter’s
sales growth over the second quarter (2Q)
was flat. In 2Q, the market picked up be-
cause of good sentiment arising from the
international border reopening and the
EPF special withdrawal in April.
“Considering that two of the over-
night policy rate hikes were done in the
third quarter, that growth is not bad,”
she told The Edge.
Loong also believes that the market has
fully priced in issues such as labour short-
ages and higher material costs. In fact, she
opined that as property counters are high
beta stocks, the sector may outperform the
market in the event of a recovery.
However, Kenanga analyst Lum Joe
Shen is more cautious, as he believes
that the market has not fully priced in
potential setbacks, such as higher interest
rates, the possible return of the goods
and services tax, as well as inflation of
construction and raw material prices.
According to him, banks have also
tightened loan approvals while there
is also more supply of homes coming
from the secondary market, especially
through auction, which is hindering
primary market sales.
“It’s hard for developers to pass on
costs due to affordability. A lot of devel-
opers have high gearing, and with high
interest rates, that means higher borrow-
ing costs, which affects their bottomline.
Earnings may come off considerably,”
he cautioned.
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
China vows
to hit back at
nations imposing
Covid-19
travel curbs
Bloomberg
(Jan 3): China said it would hit back at
nations that placed Covid restrictions on
its travellers for “political goals”, showing
the coronavirus remains a politically sen-
sitive subject in Beijing even as it lets the
virus run rampant.
“We believe that some countries’ en-
try restrictions targeting only China lack
scientific basis and some excessive meas-
ures are unacceptable,” Foreign Ministry
spokeswoman Mao Ning said on Tuesday
(Jan 3) at a regular press briefing in Beijing.
“We firmly oppose attempts to manip-
ulate Covid prevention and control meas-
ures to achieve political goals, and China
will take corresponding measures based
on the principle of reciprocity in differ-
ent situations,” she said, without naming
any individual countries. She added that
China was ready to “strengthen commu-
nication with the international commu-
nity and work together to defeat Covid”.
The US, Japan and some other coun-
tries are requiring travellers from China
to show a negative test before allowing
them to enter, and Taiwan has said it will
quarantine positive cases. The tightening
measures come as China disbands its strict
Covid Zero strategy after nearly three years
— one that made entering the Asian nation
very difficult because it required all arriv-
als to isolate for days in hotels or camps.
A deluge of cases, combined with a lack
of information from the Chinese govern-
15 TheEdge CEO morning brief
w o r l d
bloomberg
ment about how many people are sick or
dying, has raised concern over the pos-
sibility that new strains of the virus will
emerge.
Italy said it would begin testing all
arrivals from China after almost half of
the passengers on two recent flights to
Milan were found to have the virus. The
European nation later said it didn’t find
any new concerning Covid-19 mutations
among the arrivals from China who test-
ed positive.
We firmly oppose
attempts to manipulate
Covid prevention
and control measures
to achieve political
goals, and China will
take corresponding
measures based on the
principle of reciprocity
in different situations.”
Covid-19 has been a politically sensitive
topic in China since first appeared in the
nation some three years ago. Former pres-
ident Donald Trump angered Beijing by
repeatedly referring to the “China virus”,
prompting China’s diplomats to spread
the conspiracy theory that the virus may
have originated in US bioweapons labs.
In April 2020, former Australian prime
minister Scott Morrison upset China by call-
ing for an international investigation into
the origins of Covid. Beijing later placed
trade sanctions on a number of Australian
exports, including wine, barley and meat.
A visit to Beijing last month by Aus-
tralian Foreign Minister Penny Wong has
helped thaw relations with China, though
trade barriers remain in place.
US surges to
top of LNG
exporter ranks
on breakneck
growth
by Stephen Stapczynski
Bloomberg
(Jan 3): The US tied Qatar as the
world’s top exporter of liquefied
natural gas last year, a milestone
for the meteoric rise of America as
a major supplier of the fuel.
Both countries exported 81.2
million tons in 2022, according
to ship-tracking data compiled by
Bloomberg. While that’s a modest
increase for Qatar, it marks a huge
leap for the US, which only began
exporting LNG from the lower-48
states in 2016 and has seemingly
overnight become a dominant force
in the industry.
A shale gas revolution, coupled
with billions of dollars of investments
in liquefaction facilities, transformed
the US from a net LNG importer to
a major supplier. The global energy
crisis and a shift away from Russian
pipeline gas has increased demand
for US LNG, which could also help
support construction of several new
export projects across the Gulf Coast.
The US would have been the
world’s top LNG exporter if not for
a fire at the Freeport export plant
in Texas, which has kept the plant
shut since June. The facility is slat-
ed to resume operations later this
month, which will cement the US
as the biggest exporter of the fuel.
Still, the US will need to build a lot
more LNG export capacity if it wants
to hold onto the top spot through the
end of this decade. Qatar is in the
midst of an enormous expansion to its
production facility, which could solid-
ify its position as the LNG leader from
2026. Australia is poised to remain
as the world’s third-largest supplier.
In another shakeup, Japan over-
took China to become the biggest
LNG importer in 2022, according
to ship data. China’s Covid restric-
tions dashed demand for the fuel,
while Japanese rivals hoarded gas
to prepare for winter.
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3 16 TheEdge CEO morning brief

w o r l d

South Korea
(Jan 3): South Korea’s government plans It’s uncertain whether the revised bill
to hike tax breaks for big chip companies’ will gain the necessary support of the ma-

plans bigger tax

capex to as much as 25%, after President jority-wielding opposition party at the na-
Yoon Suk Yeol called for bigger incentives tional assembly. Opponents argue that such

breaks to boost
to fuel the critical sector. incentives endanger government finances
Big companies will get a tax credit of and would only benefit big firms.

its chip sector

15% on investments on manufacturing
facilities, up from the planned 8% under
legislation passed last month, according
to a finance ministry statement. Smaller
companies’ capex spending will get a tax
break of 25%, up from 16%. Any addi-
tional investment in chipmaking in 2023
will get another 10% tax break, the min-
istry said. The broadened plan, which will
be proposed this month, could reduce the
tax burden on companies by more than 3.6
trillion won (US$2.8 billion).
Home to leading memory chipmakers
Samsung Electronics Co and SK Hynix Inc,
South Korea has been caught between the
US and China in an escalating fight over sem-
iconductors, which control key technologies
from artificial intelligence to missile defences.
It’s unusual for an administration to
propose substantive changes so soon af-
ter lawmakers pass a bill. Yoon ordered
his government just last week to devise
stronger incentives to drive its chip in-
dustry, accusing opposition lawmakers
of impeding that critical effort as other
countries spend billions on semiconduc-
tor policy support.
In a strongly worded statement, Yoon
blasted a bill passed on Dec 23 with a
smaller-than-envisioned tax cut for cor-
porates. It called for a tax break of 8% for
by Sohee Kim big companies, falling shy of the 20% that
Bloomberg a special committee of experts had previ-
ously recommended.
reuters US, China and Japan are pouring bil-
lions into building up their own chip sup-
ply chains, as more countries embrace tech
protectionism after pandemic-driven logis-
tics snarls highlighted countries’ depend-
ence on one another for key electronic
components.
US sanctions on advanced chip tech-
nology exports bound for China are put-
ting increased pressure on South Korea to
choose between the US, its security ally,
and China, its biggest trade partner. Both
have asked South Korea to expand chip
South Korea has been production partnerships, and Yoon’s rul-
caught between the ing party has formed a 13-member spe-
US and China in an cial committee to brainstorm a solution.
escalating fight over
semiconductors.
Read also: Samsung veteran sounds alarm
on South Korea losing a global chip war

iPhone City
(Jan 3): Foxconn Technology Group has The factory’s speedy bounce-back
brought the world’s largest iPhone plant bodes well for production of Apple’s mar-

is back at 90%
to about 90% of anticipated peak capac- quee product in the run-up to the Lu-
ity, suggesting Apple Inc’s biggest main nar New Year shopping season. A nation-

capacity after
production partner has secured enough wide Covid flare-up after Beijing abruptly
workers despite a Covid resurgence and dropped most Covid Zero-era curbs had

Covid-19 turmoil
recent staff upheaval. clouded the prospects for manufacturers
Foxconn’s plant in the central Chinese like Foxconn, which require armies of

subsides
city of Zhengzhou is now operating with
roughly 200,000 staff, the official Henan
Daily reported, citing Foxconn executive
Vic Wang. That is about the normal staff-
ing level, based on previous reports. As of
Dec 30, the plant was shipping at 90% of
the peak capacity forecast at the start of
last year, the representative said.
workers to keep factories humming.
The recent outbreak followed weeks of
turmoil at the Zhengzhou plant known as
iPhone City, which produces the vast ma-
by Debby Wu jority of high-end iPhone 14 Pro and Pro
Bloomberg Max devices. Thousands of workers fled
or staged protests against extreme Covid
reuters curbs in November — a movement that
reverberated across the country. Foxconn
ended most of those restrictions last month
and ramped up incentives for both new
and existing employees.
That unprecedented disruption in turn
stoked concerns about iPhone production
over the critical holiday period. Apple at
one point stood to lose close to six million
units of iPhone production as a result of
that upheaval, Bloomberg News has reported.

Read also: Bodies pile up in China as

Covid surge overwhelms crematoriums
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
Singapore’s
economy topped
forecasts in 2022
but new risks
growing
by Chen Lin
Reuters
SINGAPORE (Jan 3): Singapore’s econ-
omy grew faster that official forecasts in
2022 but slower activity in the fourth
quarter points to significant risks ahead
for the city state in the new year as global
demand weakens and inflationary pres-
sures weigh.
Singapore’s economy grew 3.8% in
2022, preliminary data from the Ministry
of Trade and Industry showed on Tuesday,
beating government forecast for growth of
3.5% and down from 7.6% in 2021.
Gross domestic product (GDP) expand-
ed 2.2% in October-December on a year-
on-year basis, the government data showed,
almost half the 4.2% growth seen in the
third quarter. Eight economists polled by
Reuters had expected growth of 2.1%.
(Jan 3): Indonesia’s budget deficit ratio
fell to a three-year low as a surge in com-
pany earnings and consumer spending
pushed tax revenue beyond the govern-
ment’s target.
The deficit stood at 2.38% of gross
domestic product as of end-2022 as state
earnings rose 30.6%, Finance Minister Sri
Mulyani Indrawati said in a briefing on the
unaudited figures.
That means Southeast Asia’s largest
economy has made good on its pledge to
return the fiscal deficit within its 3% legal
limit one year early.
The “deficit decline is getting
sharper as Indonesia continues to
manage economic recovery while
restoring the budget’s health and
credibility,” Indrawati said on
Tuesday.
Indonesia is reaping the gains
of a commodity export boom
and a rebound in consumer de-
mand, driving state earnings —
tax, non-tax, customs and ex-
cise — well over target last
year.
Corporate income tax-
es surged 71.7% in 2022
from a year earlier, with
17 TheEdge CEO morning brief
w o r l d
“It is concerning that there is a slight
quarter-on-quarter fall in services… this
showed the impact of the global slowdown
on external oriented services sectors, and
that further growth from current levels
will be harder to achieve in 2023,” said
MUFG analyst Jeff Ng.
GDP grew 0.2% on a quarter-on-quar-
ter seasonally adjusted basis in Octo-
ber-December.
Singapore Prime Minister Lee Hsien
Loong said in his New Year message on
Saturday that the international outlook
remains troubled, which will affect the city
state’s economy. The government expects
growth of between 0.5% to 2.5% this year.
Inflation
Singapore has seen some signs of price
pressures easing in recent months but in-
flation still remained elevated at about 5%.
Meanwhile, the country’s sales tax has
been raised to 8% from 7% since Jan. 1
this year as the government needs more
revenue to fund increasing healthcare
expenditure of its aging population. The
sales tax will be further raised to 9% from
2024.
Singapore’s government has pledged
to give almost 3 million Singaporeans at
least S$700 in cash payouts over five years
as part of an S$8 billion “assurance pack-
age” to help them cope with rising prices.
Tax windfall cuts
Indonesia Budget
deficit to pre-
pandemic level
by Claire Jiao & Grace Sihombing
Bloomberg
the highest gains seen in
mining, trade and trans-
portation sectors. Val-
ue-added taxes climbed
13.7%.
Meanwhile, state ex-
penditure only climbed
10.9% driven by higher
subsidies and compensa-
tion payments as energy
costs soared. This was offset
by smaller spending on health
and pandemic handling.
Indonesian Finance
Minister Sri Mulyani
Indrawati
Marcos seeks
to move China
ties to ‘higher
gear’ in trip
by Andreo Calo nzo
Bloomberg
(Jan 3): Philippine President Fer-
dinand Marcos Jr said his govern-
ment expects to sign more than 10
agreements with China during his
visit there starting Tuesday, as he
seeks to shift the two nations’ ties
to “higher gear.”
“I will be opening a new chap-
ter in our comprehensive strategic
cooperation with China,” Marcos
said in a speech before departing
for Beijing. He added that he will
broaden ties with China on ag-
riculture, energy, infrastructure
and trade.
The trip is Marcos’s seventh
overseas since he assumed office in
June and comes amid renewed ten-
sions between Manila and Beijing
in the South China Sea. The Phil-
ippine defence department earlier
ordered the military to strengthen
presence in the South China Sea,
after Bloomberg News reported Chi-
na’s build up in several unoccupied
land features. China’s foreign min-
istry has denied the report.
The Philippine leader also said
he will discuss “political security is-
sues” during his meeting with Chi-
nese President Xi Jinping and will
seek to resolve these issues with Bei-
jing for the “mutual benefit” of the
two nations.
Among the deals expected to be
signed is a Memorandum of Under-
standing “on communication mech-
anism on maritime issues” and a
“joint action plan on agricultural
and fisheries cooperation,” Philip-
pine Foreign Affairs spokesperson
Teresita Daza said in a separate mes-
sage to reporters Tuesday.
In his pre-departure address,
Marcos also said he will invite Chi-
nese tourists to return to the Philip-
pines as China reopens its borders.
Read also: More flight delays as
Philippine airport reels from glitch
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
UK strikes and crumbling health service
add headaches for Sunak
by Reed Landberg
Bloomberg
(Jan 3): British rail workers will walk off the
job much of this week, paralysing transport
and adding to the troubles piling up for
Prime Minister Rishi Sunak’s government.
Union workers will strike for five days start-
ing Tuesday (Jan 3), snarling the usual return
to work following the holidays and interrupt-
ing January sales that are crucial for retailers.
The protests stem from growing anger
over the tightest cost-of-living squeeze in
memory. Inflation reached a four-decade
high last year, and wages aren’t keeping
pace, especially in public services.
Nurses and ambulance drivers plan to
strike later in the month as officials warn
the National Health Service is struggling to
cope with flu and Covid outbreaks.
Sunak’s response has been to hold the
line against what he sees as inflation-busting
pay raises. He’s blaming surging prices on
Russia’s invasion of Ukraine, which cut off
supplies of energy and wheat, boosting the
cost of electricity and food. His New Year’s
message warned of tough times ahead.
“I am not going to pretend that all our
problems will go away in the new year,”
Sunak said in the video message posted to
Twitter on Saturday. “Just as we recovered
from an unprecedented global pandemic,
Russia launched a barbaric and illegal in-
vasion across Ukraine.”
The Tories must call a general election
by January 2025 at the latest, and the Bank
of England anticipates the economy is al-
ready in recession and unlikely to grow until
early 2024.
That downturn has been exacerbated
by Britain’s exit from the European Un-
ion, which slashed trade links and left the
UK the only economy in the Group of Sev-
en nations that has yet to regain the size it
had before the pandemic.
A Financial Times survey of 101 econo-
mists published Monday showed most ex-
pect the UK have the worst and longest re-
cession of any G-7 country.Those quoted by
the newspaper described the year ahead as
“tough”, “bleak”, “grim” and “miserable”.
Government ministers, taking a page out of
Margaret Thatcher’s strategy with the unions
when she was prime minister in the 1980s,
have maintained a confrontational stance with
unions, threatening to lengthen the strikes.
“We’re not going back to the 1970s where
the trade union barons thought that they ran
the government,” Defence Secretary Ben
18 TheEdge CEO morning brief
w o r l d
Wallace said last week. “We’re not going to
be held to ransom.”
The strikes and a disastrous budget that
shocked markets in September have eaten
into the ruling Conservative Party’s reputa-
tion with voters for handling the economy.
The Conservatives, in power for more
than 12 years, trail the Labour opposition
in polls. People Polling had the Conserva-
tives 26 points behind in a survey for GB
News released on Dec 30.
Phil Banfield, chair of British Medical
Association council, gave a stark warning
about the scale of the crisis in the NHS.
“The current situation in the NHS is
intolerable and unsustainable, both for our
patients and the hard-working staff desper-
ately trying to keep up with incredibly high
levels of demand,” Banfield told the Press
Association. “The BMA has repeatedly in-
vited the government to sit down and talk
about the pressures on our health service,
but their silence is deafening.”
Education Minister Robert Halfon said
the NHS is high on Sunak’s agenda.
“The prime minister treats this as a top
priority,” Halfon said on BBC News. “We’re
increasing the NHS capacity by the equiva-
lent of 7,000 beds, spending an extra £500
million to speed up hospital discharge and
improve capacity.”
Wes Streeting, the Labour lawmaker
who serves as shadow health secretary,
said the government isn’t talking to NHS
workers about their concerns about pay
and conditions.
It’s “completely inexplicable as to why,
given the front pages today, given what we’ve
seen throughout Christmas and the new
year, not a single government minister —
whether it’s the prime minister, the health
secretary — has raised their head or shown
their face to say exactly what they are doing
to grip this crisis”, he said.
Rail disruption will intensify on Tuesday.
The National Union of Rail, Maritime and
Transport workers will stage a walkout on
Jan 3, 4, 6 and 7. The Aslef Union, which
represents train drivers, said members will
strike on Jan 5.
The Royal College of Nursing said that
members will strike on Jan 18 and 19, fol-
lowing two days of historic industrial action
in December. It’s the first time strikes have
taken place on such a wide scale since the
union was founded over a century ago. Am-
bulance drivers will halt work on Jan 11.
The risk is that anger among union workers
snowballs into more concerted action reminis-
cent of the stoppages that paralysed the UK
in the 1970s and brought Thatcher to power.
RMT General Secretary Mick Lynch
said there’s an “unprecedented level of min-
isterial interference” blocking a settlement
with rail workers. Aslef General Secretary
Mick Whelan said the union was “in it for
the long haul”.
“We don’t want to go on strike, but the
companies have pushed us into this place,”
Whelan told the Press Association. “They
have not offered our members a penny and
these are people who have not had an in-
crease since April 2019.”
Mark Serwotka, general secretary of the
PCS union, told Sky News last week that
it was “only a matter of time” before “co-
ordinated and synchronised” action was
launched across the unions.
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
Evergrande
vows debt
payment after
restructuring
delay
Bloomberg
(Jan 3): China Evergrande Group chair-
man Hui Ka Yan vowed to ensure project
delivery and debt payment, as the billion-
aire’s credit crisis drags into the new year.
It’s a crucial year for Evergrande to
complete residential projects it pre-sold,
Hui said in a Jan 1 letter to employees,
adding that construction has resumed for
all of its 732 real estate sites last year.
“As long as Evergrande employees can
keep construction going, resume sales and
restart operations, we will repay all kinds of
debt and resolve risks in the end,” according
to the letter that didn’t elaborate detailed
plans. “Evergrande will start a new chapter
after that.”
Evergrande is facing multiple head-
winds this year, as China’s economy weak-
ens and housing demand slumps. The de-
(Jan 3): Tesla Inc shares kicked off 2023
with a 5% drop on Tuesday, extending a
selloff from last year on growing worries
about weakening demand and logistical
problems that have hampered deliveries.
The latest slide came after the world’s
most valuable automaker missed estimates
for fourth-quarter deliveries despite ship-
ping a record number of vehicles.
At least four brokerages cut their price
targets and earnings estimates, looking for
more downside after the stock suffered its
biggest annual loss since going public in
2010.
The result “came at the at the cost
of higher incentives, suggesting low-
er pricing and margin”, brokerage JP
Morgan said in a note, lowering their
19 TheEdge CEO morning brief
w o r l d
reuters
veloper could be forced to surrender more
undeveloped land parcels to local govern-
ments to help finance construction of its
unfinished homes, Bloomberg Intelligence
analyst Kristy Hung wrote in a report.
The world’s most indebted developer
failed to come up with a “preliminary re-
structuring plan” it promised by the end of
July. It missed another self-imposed 2022
year-end deadline as well.
The company met with an ad-hoc group
of its dollar bondholders in early Decem-
ber to formally discuss plans, Bloomberg
reported earlier. With about 1.97 trillion
yuan (US$286 billion) of liabilities, the
company is facing a winding-up lawsuit in
Hong Kong, while sitting at the heart of
a property crisis that’s triggered a flurry
of defaults and caused home construction
halts across the country.
It expected to receive support from off-
shore creditors by the end of February or
early March, the company’s legal repre-
sentative said during a winding-up hearing
in late November. Evergrande was urged
by the judge of the winding-up case to
present “something more concrete” during
the next hearing on March 20.
Evergrande has delivered 301,000 resi-
dential units in 2022, according to the letter,
meeting its target. The developer’s electric
vehicle startup has started mass production
and delivery of Hengchi 5, it added.
Tesla shares
start 2023 lower
on worries over
weak demand,
logistical issues
Reuters
SpaceX valued at
US$137 bil in latest
funding round,
CNBC says
by Anurag Kotoky
Reuters
(Jan 3): Space Exploration Tech-
nologies Corp is raising US$750
million in new fundraising, which
values the company at US$137 bil-
lion, CNBC reported, citing corre-
spondence it obtained.
Andreessen Horowitz will likely
lead the new funding round in the
Elon Musk-led company known as
SpaceX, the outlet reported.The firm
had previously invested in SpaceX
alongside Founders Fund, Sequoia,
Gigafund and others, the report said.
SpaceX was offering to sell insider
shares at a price that would
raise the closely held
company’s valuation to
about US$140 billion,
Bloomberg News re-
ported in December.
SpaceX and
Horowitz didn’t im-
mediately respond to
CNBC’s request for
comment.
Bloomberg
price target by US$25 to US$125.
Shares of the electric-vehicle maker
were trading at US$117 before the bell,
after losing 65% of their market value in
2022, their worst year on record.
The company, which had a peak mar-
ket capitalization of more than US$1 tril-
lion, now has a valuation of about US$390
billion.
That still makes it the world’s most val-
uable automaker, even though its produc-
tion is a fraction of rivals such as Japan’s
Toyota Motor Corp.
Read also: South Korea fines Tesla
US$2.2 mil for exaggerating driving range
of EVs
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
Fear of global gas
crisis eased by
warm start
to winter
by Stephen Stapczynski
Bloomberg
(Jan 3): A warmer-than-expected start to
winter across large parts of the world is
rapidly easing fears of a natural gas crisis
that had been predicted to trigger outages
and add to pressure on power bills.
Forecasts point to temperatures above
seasonal norms for most of Europe in the
next two weeks, while the US expects bet-
ter weather through mid-January. It’ll be
more comfortable across much of China
— the world’s biggest gas importer — over
the next 10 days, and Tokyo may see a spike
around mid-January.
(Jan 3): China is aiming to install more clean
power in the course of 13 months than India
and Japan have ever built combined.
The massive spending on renewables
comes at Beijing races to meet climate
targets and reduce dependence on pricey
foreign fuel.
It aims to have 430 gigawatts of wind and
490 gigawatts of solar power by year-end,
the National Energy Administration said in a
roadmap released on Saturday.That will be
118 gigawatts of new solar over end-Novem-
ber levels, and 79 extra gigawatts of wind.
The clean energy spree is nothing new for
China, which has by far the world’s largest
renewable power fleet.That hasn’t stopped
it from continuing to be the biggest green-
house gas emitter, however, burning and
mining more than half of the world’s coal.
China still likely generated more pow-
er from fossil fuels last year than in 2021
despite record renewable installations, due
in large part to an historic drought over
summer that sapped hydropower.
The solar industry in particular is espe-
cially optimistic about 2023. Developers
had already broken the country’s annual
20 TheEdge CEO morning brief
w o r l d
Gas futures are plummeting on reduced
fuel consumption and the weaker outlook,
with US contracts tumbling in their first
trading session of 2023. European gas on
Monday briefly touched the lowest level
since the war in Ukraine started.
“The risk of extreme market tightness
that people were worried about before the
winter started seems low now,” said Ab-
hishek Rohatgi, a Singapore-based analyst
at researcher BloombergNEF. Europe has
rebuilt inventories, while milder weather
across North Asia means there’ll be less
competition for liquefied natural gas car-
goes, he said.
Governments and utilities had been
bracing for gas shortages after Russia in-
vaded Ukraine last year, disrupting energy
deliveries and lifting global demand for
LNG. Prices for gas and coal hit a record
as importers rushed to stockpile fuel for
winter, when consumption peaks.
Those efforts to build inventories mean
the biggest consumers are now sitting on
comfortable supplies. In fact, Germany
was able to add more gas into storage at
the end of December as a mix of warmer
weather and lower activity during the hol-
iday season trimmed fuel use. Gas stocks
there are now above 90% full, after slipping
to a season low of 87% before Christmas.
Gas storage across Europe is 84% full, far
above the five-year seasonal norm of 70%,
according to Gas Infrastructure Europe.
Strong winds are also reducing stress
on the region’s energy systems.
China charts
course for another
renewable energy
boom in 2023
Bloomberg
installation record by the end of November,
and an even bigger leap is expected this
year after equipment prices began to fall
last month following a rare period of cost
inflation due to supply chain bottlenecks.
China is planning to build 2.9 gigawatts
of nuclear power this year, on top of the 55.5
gigawatts online at the end of November,
according to the energy roadmap. It aims to
increase hydropower capacity to 423 giga-
watts from 410 gigawatts at end-November.
Asia’s largest economy is also looking
to ramp up oil and gas production. It’s tar-
geting increases of around 3% this year for
both natural gas and crude output.
Norway’s
Blastr plans
€4 bil green
steel plant in
Finland
by Leo Laikola
Bloomberg
(Jan 3): Norway’s Blastr Green Steel
is planning a €4 billion (US$4.3
billion) investment to construct a
low-carbon steel factory in Finland
in what could be one of the largest
industrial projects to take place in
the Nordic country.
Blastr signed a letter of intent
with Fortum Oyj on the planned
location, an industrial area in Inkoo
on the south coast of the country,
according to a statement by Busi-
ness Finland on Tuesday.
The facility will include integrated
hydrogen production and employ as
many as 1,200 staff when operational.
Steel-making is one of the most
polluting industries in the world,
with huge blast furnaces heating
iron ore with coking coal. A clean-
er way is to use hydrogen produced
with renewable energy. A number
of companies, including Sweden’s
SSAB AB and Finland’s Outokum-
pu Oyj, are exploring green-steel
technologies, though it’s not yet
produced at an industrial scale.
The Blastr factory is set to pro-
duce 2.5 million tons of hot and
cold-rolled green steel annually
from of 2026. The company chose
Finland for its factory in part due
to the abundance of wind power,
according to Chief Executive Of-
ficer Hans Fredrik Wittusen.
While Blastr is yet to secure fund-
ing for the project, it plans to raise
debt and funds on the capital mar-
kets, the CEO told newspaper Hels-
ingin Sanomat.The final investment
decision is due in the beginning of
2025, according to the newspaper.
Blastr is backed by Vanir Green
Industries, founded by Tore Ivar
Slettemoen, who is also one of the
founders of Freyr Battery AS, a
company that targets the production
of green battery cells to decarbonize
energy and transportation systems.
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
Singapore’s home
price growth
eases amid
interest rate hikes
by Sing Yee Ong
Bloomberg
(Jan 3): Singapore’s home prices grew at a
slower pace in the fourth quarter, as buyers
were pinched by surging borrowing costs.
Prices climbed 0.2% according to flash
estimates released by the Urban Rede-
velopment Authority on Tuesday (Jan 3).
That’s the lowest quarterly increase for
2022.
Tight supply dented home sales, which
fell to the lowest in eight years in No-
vember. Despite the slowdown in growth,
Singapore’s housing sector remains bull-
ish. A shortage in supply and an influx of
(Jan 3): First-time homebuyers accounted
for the biggest chunk of Britain’s property
purchases in 2022, even as mortgage rates
spiralled to 14-year highs and a cost-of-liv-
ing squeeze strained finances.
Britons buying their first home made up
an estimated 53% of all property purchas-
es with a mortgage last year, according to
a research published on Tuesday (Jan 3)
by the Yorkshire Building Society. That’s
up from 50% in 2021 and 41% a decade
ago. Still, the amount of new buyers fell
9% year-on-year, dropping to 370,287 in
2022 from a 20-year high of more than
400,000 a year earlier.
The new buyers provided demand in a
year that saw house prices climb. This year
their numbers are likely to drop even more,
according to Nitesh Patel, an economist
at Yorkshire Building Society.
“The one constant in the housing mar-
ket — the lack of supply at all stages of
homeownership — will remain, which will
help to maintain house prices,” Patel said.
“The continued uncertain landscape, how-
ever, which may prevent would-be bor-
rowers from making such a significant
purchase or cause lenders to tighten af-
fordability, could mean we’ll see a further
fall in first-time buyers.”
For 2022 as a whole, Nationwide Build-
ing Society said property prices finished
the year 2.8% above where they were at
the end of 2021.
Mor tgage rates have surged in
Britain since then-prime minister Liz
Truss’s September mini-budget sent
21 TheEdge CEO morning brief
w o r l d
wealth have pushed up prices in the city
state competing to become Asia’s leading
financial hub.
“Strong employment sustains sellers’
pricing power, and they may not be in-
clined to lower prices too excessively,” said
Christine Sun, the senior vice-president
of research and analytics at OrangeTee &
Tie, adding that demand remains strong
and prices are likely to go up next year.
Home prices are projected to climb 5%
to 8% in 2023, Sun said, adding that the
supply of houses will ramp up in 2023.The
country’s private rents are also expected
to increase, albeit at a slower pace.
Borrowing costs in Singapore have
surged, as the US Federal Reserve and
other central banks hike rates to curb
inflation. Singapore’s three major banks
raised their fixed home loan interest rates
in November.
The three-month compound average
Singapore overnight rate — used by banks
to set interest rates for mortgages — has
jumped to about 3% from 0.2% a year
prior.
First-time buyers
made up more
than half of UK
home purchases
last year
by Damian Shepherd
Bloomberg
Bloomberg
key home loan costs to highs of 6.65%.
While rates have since stabilised below
6%, higher borrowing costs are threat-
ening to trigger a decline in house pric-
es this year.
Families offered
several million
yen to move out
of Tokyo
by Lisa Du
Bloomberg
(Jan 3): Japan plans to boost financial
support to households to move away
from the capital to combat depopula-
tion in other areas of the country, ac-
cording to multiple local media reports.
Eligible families in the Tokyo met-
ropolitan area will be able to receive
¥1 million (US$7,700) per child
starting in the fiscal year 2023 if they
move to a disadvantaged local area —
more than triple the ¥300,000 incen-
tive already in place, the reports said.
The financial incentives highlight
the challenges that Japan is facing with
its low birth rate and long life expec-
tancy. Rural areas have seen rapid de-
population as the young move away
for opportunities in cities, leaving the
localities dotted with empty homes and
contending with dwindling tax revenue.
The increased support for children
comes on top of a flat ¥1 million that
families can get for moving. Under
the new proposal, a household with
two children could receive ¥3 million
in support if they left the Tokyo area.
Japan’s national government began
the initiative to attract people to re-
gional areas in 2019, allowing house-
holds who have lived in the central To-
kyo metropolitan area for five years to
apply for support funds if they move.
Families can continue to work re-
motely at their current job, work at a
local small- or medium-sized business,
or start a business in the local area —
which would allow them to apply for
even more financial support.
The scheme saw 1,184 household
participants in 2021, compared to 71
the first year it launched, according
to the Nikkei.
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
These 10 things will shape politics in 2023:
Balance of Power
by Rosalind Mathieson
Bloomberg
(Jan 3): Welcome back to Balance of Pow-
er! We’re expecting yet another busy year,
with some major ongoing themes but a
few emerging trends too. We’ll be here
to unpick the biggest developments and
steer our readers through the political noise
around the world.
This list is by no means exhaustive, but
here are 10 things worth watching in 2023:
1) Vladimir Putin has very little to show
for more than 10 months of war in Ukraine.
But that doesn’t mean the conflict will end
soon. Indeed, as we move past winter, fight-
ing may pick up on the ground, and the race
to replenish weapons stocks is key. Right
now there’s no incentive for Ukrainian
President Volodymyr Zelenskiy to negoti-
ate, especially as he insists on the return of
occupied territories and Crimea, annexed
by Russia in 2014. Will the US press him
to do so? Equally there’s no apparent rea-
son at home for Putin to try diplomacy —
if anything, hardliners may push him to
go harder.
2) While US President Joe Biden is heavily
engaged in supporting Ukraine, it’s clear
his long-term priority is the relationship
with China. The world’s two biggest econ-
omies are still struggling to find a way to
navigate around each other without col-
liding. At least they’re back talking. China
is far more crucial to the global economy
than Russia, and its ambitions on Taiwan,
a democratically-governed island it sees
as its territory, could become a flashpoint
that pulls multiple countries in, including
the US.
3) Xi Jinping’s problems, meantime, are
piling up at home. Yes, China’s president
has cemented himself into power for an-
other term. But having stuck to stringent
Covid rules for years, his abrupt reversal
has thrown China into chaos with spiraling
virus cases and disruption for businesses
and supply chains. How long it takes Xi to
get his country through the blizzard could
have significant ramifications for global
economic health this year.
4) Economic statecraft is a term you
can expect to hear more about this year.
It’s not just the US and China, or the US
and Russia, either. Numerous countries are
22 TheEdge CEO morning brief
w o r l d
deploying trade and regulatory tools (and
in some cases military support) to direct
their geopolitical aims and influence the
behavior of others. It can impact everything
from the supply of high-tech chips to global
efforts to address climate change. Increas-
ingly we’re seeing it extend to access and
control of energy supplies, too.
5) Countries around the world are stud-
ying the war in Ukraine in real time, as-
sessing what has been effective in terms
of military command and control and in
weaponry. Humble artillery has shown its
mettle when combined with drones, for ex-
ample. As nations from Japan to Germany
increase defence outlays, many may adjust
their military spending and structures as
a result. It may also lead to a fresh look
at the broader machinery of procurement
and how quick (or rather, how slow) de-
fence contractors are to ramp up or switch
production.
6) North Korean leader Kim Jong Un
has been letting off missiles and rockets
for months now, prompting warnings from
Seoul to Tokyo and the US. And yet he a)
has not stopped and b) has not been getting
the attention he might usually have expect-
ed, with Biden already dealing with Russia
and China. So where does Kim go from
here? A nuclear test, or does he fire off long-
range intercontinental ballistic missiles?
7) We’re seeing a new US Congress from to-
day after midterm elections where the Dem-
ocrats fared better than expected. Even so,
they lost control of the House to Republi-
cans. In the run up to the 2024 presiden-
tial vote, expect a more divided mood in
Congress and squabbles that bog legislation
down. While Biden arguably got the bigger
parts of his economic agenda through al-
ready, there’s little wiggle room on Capitol
Hill to act further on inflation and debt.
8) Luiz Inacio Lula da Silva has taken
office in Brazil, bringing a leftist back to
power in the largest Latin American econ-
omy. How will he wield that clout? But
equally the longevity of what was dubbed
a “pink tide” of progressive governments in
the region remains in doubt.We saw Pedro
Castillo removed in Peru late last year, and
there are challenges for others, including
Gabriel Boric in Chile, whose popularity
is falling. Argentina heads for the polls this
year and will be a key election to watch.
9) We’re hearing a lot about an increas-
ingly “multipolar world” after decades of
US dominance, and that includes an in-
triguing crop of middle powers coming to
greater prominence, building their own
alliance structures and playing mediator
roles in key issues. Think Turkey (where
President Recep Tayyip Erdogan is up for
re-election this year), Australia and the
UAE, for starters.
10) Finally, expect to see even more political
jostling around “stuff” this year. Access to
everything from food to energy, technology
and even water will drive economic state-
craft, defence spending and government
budgets. Inflation and cost of living pres-
sures are still with us. We are likely to get
through the current European winter OK,
but what about the certainty of gas supplies
for the next one? The UK is riven by indus-
trial turmoil.Will we see that elsewhere, too?
 w e d n e s d ay j a n u a ry 4 , 2 0 2 3
M A R K E T S
CPO RM 4,262.0088.00 OIL US$ 85.79-0.12 RM/USD 4.4085 RM/SGD 3.2804 RM/AUD 2.9623 RM/GBP 5.2547 RM/EUR 4.6494
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
MMAG Holdings Bhd 755.20 -0.005 0.020 -20.00 48.4
Borneo Oil Bhd 355.20 -0.005 0.020 -20.00 193.5
L&P Global Bhd 255.40 0.245 0.545 0.00 305.2
Citaglobal Bhd 102.80 0.040 0.330 13.79 619.9
Cypark Resources Bhd 85.30 0.050 0.520 10.64 306.2
Serba Dinamik Holdings Bhd 83.90 0.000 0.010 0.00 37.1
ZEN Tech International Bhd 55.20 0.010 0.050 25.00 40.4
Top Glove Corp Bhd 54.40 -0.040 0.865 -4.42 6,926.4
Artroniq Bhd 36.80 0.015 0.725 2.11 238.0
Dataprep Holdings BHD 32.50 0.000 0.225 0.00 151.8
JAG Bhd 27.50 0.000 0.355 0.00 214.5
Berjaya Corp Bhd 23.80 -0.010 0.290 -3.33 1,619.2
Dagang NeXchange Bhd 22.70 0.005 0.515 0.98 1,625.5
Leform Bhd 22.20 0.005 0.220 2.33 325.8
ITMAX SYSTEM Bhd 20.90 0.030 1.450 2.11 1,490.6
My EG Services Bhd 20.10 -0.015 0.855 -1.72 6,359.5
Yew Lee Pacific Group Bhd 19.50 0.015 0.410 3.80 218.3
Vinvest Capital Holdings Bhd 19.4 0.005 0.195 2.63 189
Widad Group Bhd 17.8 -0.005 0.425 -1.16 1193.9
Careplus Group Bhd 16.5 0 0.475 0 272
Data as compiled on Jan 3, 2023 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
Key Alliance Group Bhd 0.010 100.00 349.0 100.00 36.8
L&P Global Bhd 0.545 81.67 255,375.0 0.00 305.2
ZEN Tech International Bhd 0.050 25.00 55,162.9 25.00 40.4
mTouche Technology Bhd 0.060 20.00 304.3 20.00 55.6
Green Packet Bhd 0.065 18.18 7,434.1 18.18 128.7
XOX Networks Bhd 0.035 16.67 168.7 16.67 39.7
CME Group BHD 0.035 16.67 100.0 16.67 35.1
Hextar Technologies Solutions 19.840 16.30 502.8 16.30 2552.4
Magna Prima Bhd 0.535 13.83 977.9 13.83 213.5
Citaglobal Bhd 0.330 13.79 102,750.7 13.79 619.9
Reach Energy Bhd 0.050 11.11 360.1 11.11 54.8
GIIB HOLDINGS Bhd 0.100 11.11 603.4 11.11 59.1
Bintai Kinden Corp Bhd 0.100 11.11 8,036.7 11.11 85.2
Pesona Metro Holdings Bhd 0.255 10.87 6,749.9 10.87 177.2
Cypark Resources Bhd 0.520 10.64 85,335.2 10.64 306.2
Privasia Technology Bhd 0.105 10.53 575.2 10.53 64.5
GDEX Bhd 0.165 10.00 4310.2 10.00 918.5
Sealink International Bhd 0.110 10.00 4,300.9 10.00 55.0
Johan Holdings Bhd 0.060 9.09 27.6 9.09 70.1
YX Precious Metals Bhd 0.245 8.89 8,980.4 8.89 91.2
Data as compiled on Jan 3, 2023 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
Hextar Technologies Solutions 19.840 2.780 502.8 16.30 2,552.4
Ajinomoto Malaysia Bhd 13.440 0.360 106.1 2.75 817.1
L&P Global Bhd 0.545 0.245 255,375.0 0.00 305.2
Aurelius Technologies Bhd 1.990 0.160 1,057.1 8.74 712.8
Pentamaster Corp Bhd 4.570 0.140 305.0 3.16 3,250.7
Oriental Holdings BHD 6.900 0.110 98.5 1.62 4,280.5
Hextar Global Bhd 2.380 0.100 3,725.5 4.39 3,060.1
CYL Corp BHD 1.150 0.090 1,601.9 8.49 115.0
Khind Holdings Bhd 3.180 0.080 0.1 2.58 133.7
Econframe Bhd 0.970 0.065 4,255.7 7.18 315.3
Magna Prima Bhd 0.535 0.065 977.9 13.83 213.5
SFP Tech Holdings Bhd 1.860 0.060 3,645.8 3.33 1,488.0
Tomei Consolidated Bhd 1.060 0.060 3,124.7 6.00 146.9
DRB-Hicom Bhd 1.660 0.060 2,115.5 3.75 3,209.2
Ancom Nylex Bhd 1.080 0.050 3,897.0 4.85 963.1
Cypark Resources Bhd 0.520 0.050 85,335.2 10.64 306.2
QL Resources Bhd 5.560 0.050 459.4 0.91 13,531.1
Perusahaan Sadur Timah 4.440 0.050 3.0 1.14 573.2
OCB Bhd 0.800 0.050 128.4 6.67 82.3
Kelington Group Bhd 1.420 0.050 1176.5 3.65 913.1
Data as compiled on Jan 3, 2023 Source: Bloomberg
23 TheEdge CEO morning brief
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 33,147.25 -73.55 -0.22 INDONESIA 6,888.76 37.77 0.55
S&P 500 3,839.50 -9.78 -0.25 JAPAN 26,094.50 0.83 0.00
NASDAQ 100 10,939.76 -11.29 -0.10 KOREA 2,218.68 -6.99 -0.31
FTSE 100 7,623.95 172.21 2.31 PHILIPPINES 6,586.01 19.62 0.30
AUSTRALIA 6,946.19 -92.50 -1.31 SINGAPORE 3,245.80 -5.52 -0.17
CHINA 3,116.51 27.25 0.88 TAIWAN 14,224.12 86.43 0.61
HONG KONG 20,145.29 363.88 1.84 THAILAND 1,678.97 10.31 0.62
INDIA 61,301.64 133.85 0.22 VIETNAM 1,043.90 36.81 3.66
Data as compiled on Jan 3, 2023 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
EA Holdings Bhd 0.010 -33.33 100.1 -33.33 64.5
Focus Dynamics Group Bhd 0.015 -25.00 1,532.4 -25.00 95.6
Borneo Oil Bhd 0.020 -20.00 355,236.7 -20.00 193.5
MMAG Holdings Bhd 0.020 -20.00 755,168.9 -20.00 48.4
G3 Global Bhd 0.025 -16.67 4,790.5 -16.67 72.6
Quality Concrete Holdings 1.100 -16.67 61.9 -16.67 63.8
Trive Property Group BHD 0.060 -14.29 337.9 -14.29 75.8
Jerasia Capital BHD 0.030 -14.29 210.3 -14.29 2.5
Salcon Bhd 0.200 -13.04 2,106.3 -13.04 201.5
Pasdec Holdings Bhd 0.325 -9.72 79.0 -9.72 130.1
Scomi Energy Services Bhd 0.050 -9.09 50.0 -9.09 23.4
Komarkcorp Bhd 0.050 -9.09 1,045.2 -9.09 28.9
Astral Asia Bhd 0.110 -8.33 191.4 -8.33 72.6
Netx Holdings Bhd 0.055 -8.33 10.4 -8.33 46.0
Ingenieur Gudang Bhd 0.110 -8.33 116.8 -8.33 108.7
Tuju Setia Bhd 0.220 -8.33 164.1 -8.33 69.7
7-Eleven Malaysia Holdings 1.770 -8.29 313.2 -8.29 1,964.8
Classita Holdings Bhd 0.335 -8.22 12,396.7 -8.22 113.6
UCrest Bhd 0.115 -8 4524 -8 71.5
Infraharta Holdings Bhd 0.115 -8.00 108.5 -8 36.7
Data as compiled on Jan 3, 2023 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
Nestle Malaysia Bhd 138.000 -2.000 9.30 -1.43 32,361.0
Petronas Dagangan Bhd 22.240 -0.760 279.90 -3.30 22,094.4
Panasonic Manufacturing 22.500 -0.400 5.00 -1.75 1,366.8
Tenaga Nasional Bhd 9.300 -0.330 3,519.80 -3.43 53,503.6
Petronas Gas Bhd 16.800 -0.320 376.00 -1.87 33,242.7
PPB Group Bhd 17.160 -0.280 165.00 -1.61 24,411.8
BLD Plantation Bhd 9.990 -0.270 1.00 -2.63 934.1
Kuala Lumpur Kepong Bhd 22.100 -0.260 687.50 -1.16 23,827.3
Hong Leong Financial Group 18.360 -0.240 82.50 -1.29 21,026.7
MISC Bhd 7.270 -0.230 948.40 -3.07 32,451.4
Imaspro Corp Bhd 5.630 -0.220 16.10 -3.76 450.4
Quality Concrete Holdings 1.100 -0.220 61.90 -16.67 63.8
IHH Healthcare Bhd 6.010 -0.210 870.80 -3.38 52,924.3
Kotra Industries Bhd 6.420 -0.180 7.60 -2.73 950.1
Hong Leong Bank Bhd 20.380 -0.180 239.40 -0.88 44,178.1
Allianz Malaysia Bhd 14.000 -0.160 56.20 -1.13 2,491.6
Heineken Malaysia Bhd 25.040 -0.160 39.20 -0.63 7,564.5
Scientex Packaging (Ayer Keroh) 2.240 -0.160 2.00 -6.67 785.4
7-Eleven Malaysia Holdings 1.770 -0.160 313.20 -8.29 1964.8
Sime Darby Plantation Bhd 4.5 -0.15 1168 -3.23 31120.7
Data as compiled on Jan 3, 2023 Source: Bloomberg