CHINA WARNINGS FLASH ACROSS GLOBAL MARKETS

AS GROWTH DISAPPOINTS p15

F R I DAY, M AY 2 6 , 2 0 2 3 t h e e d g e m a l ay s i a . c o m
ISSUE 577/2023

CEOMorningBrief HOME: Ekuinas in talks to explore IPO or trade sale for Al-Ikhsan exit p4
Public Bank’s 1Q net profit up 22% to RM1.71 bil in absence of prosperity tax p6
High Court strikes out 11 Sarawakians’ suit seeking state independence, MA63 null and void declaration p12
‘Datuk Roy’, MACC officer charged with bribery for keeping
Muhyiddin’s son out of Jana Wibawa probes p14
WORLD: Thai election commission confirms opposition win in May 14 vote p17

More questions raised by Bursa Securities on

YNH Property’s RM170 mil land disposal to Sunway
Report on Page 2.
LOW YEN YEING/THE EDGE

Refiners introduce fine

white sugar at market price;
ceiling prices remain on
refined and coarse sugar
Report on Page 3.
 F R I D AY M AY 2 6 , 2 0 2 3
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More questions raised by
Bursa Securities on YNH Property’s
RM170 mil land disposal to Sunway
KUALA LUMPUR (May 25):YNH Prop-
erty Bhd’s land deal with Sunway Group
Bhd seems to have hit a stumbling block
as Bursa Securities has raised more ques-
tions on the transaction.
On May 16,YNH Property announced
that it was disposing of a piece of land
measuring 5.09 acres in Desa Sri Harta-
mas to Sunway’s wholly-owned subsidiary
Sunway Living Space Sdn Bhd for RM170
million cash.
However, it was issued with the first
query by Bursa Securities which had 26
questions, to which it replied on May 19.
On Thursday (May 25),YNH Property
received a second query from Bursa Se-
curities related to the land deal, and was
required to provide its response within 24
hours.
In its reply to the query,YNH Property
acknowledged the group had oversight on
a few details and will seek advice from the
adviser to rectify the oversight.
The group also pointed out that the in-
clusion of the specific condition precedent
to seek approval of its shareholders is to
fulfil the requirement by Sunway, arising
from the negotiation.
It’s interesting to see if Bursa is satisfied
with the latest response by YNH Property.
Below is YNH Property’s response to
the second query:
1. Based on your representation made
in the announcements, the Sub-Sale
Agreement entered into on 18 April
2022 whereby the Vendor had purchased
the Property from the First Beneficial
Owner for a purchase consideration of
RM150 million is deemed a transaction
pursuant to Chapter 10 and Questions
& Answers 10.2 of the Main Market List-
ing Requirements (LR). In this regard,
you are required to calculate the mate-
riality of the percentage ratios pursuant
2 THEEDGE CEO MORNING BRIEF
H O M E
published by
(266980-X)
tel. 603-77218000
Level 3, Menara KLK, 1 Jalan PJU 7/6,
Mutiara Damansara, 47810, Petaling Jaya,
Selangor, Malaysia
BY JUSTIN LIM
theedgemalaysia.com
to Paragraph 10.02 of the LR and make
announcement on the acquisition of the
Property, if required, pursuant to Chap-
ter 10 of the LR.
We acknowledge our oversight of such [an]
announcement and shall seek advice from
the Adviser to rectify this oversight.
2.To provide further clarification on the
“various submissions to various author-
ities” with regard to the deferred regis-
tration for Kar Sin Bhd to be the regis-
tered proprietor by specifying the names
of the authorities involved, type/descrip-
tion of the application submitted, the
date of the application, current status of
the application and the indicative time-
line to obtain the authorities’ approval.
Application in the name of the First Benefi-
cial Owner to Jabatan Ketua Pengarah Tan-
ah Dan Galian Persekutuan Wilayah Perse-
kutuan Kuala Lumpur has been made on
Oct 13, 2022 to obtain a final title after the
compulsory acquisition by the government
and it is estimated that the approval for the
application with the final title can only be
obtained in July or August 2023. Moreover,
the Development Order (DO) approved by
Dewan Bandaraya Kuala Lumpur (DBKL)
requires annual renewal and currently the
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chief commercial officer . Sharon Teh
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approval is given to the First Beneficial
Owner based on support that the registered
owner and the First Beneficial Owner is the
same party and a change in ownership may
interrupt renewal of the DO.
3.To clarify further on the rationale and
reason for the inclusion of the specific
Condition Precedent to seek approval
of YNH’s shareholders if the Proposed
Disposal is not subject to such share-
holders’ approval.
The inclusion of the specific Condition
Precedent to seek approval ofYNH’s share-
holders approval is to fulfil the require-
ment by the Purchaser arising from the
negotiation.
4. Pursuant to Paragraph 9.03(1) of the
LR, a listed issuer must make imme-
diate public disclosure of any material
information. Paragraph 9.04 of the LR
also sets out some examples of events
which may require immediate disclo-
sure including, among others, the en-
try into a joint venture agreement and
the acquisition or loss of a contract. In
this regard, please clarify the basis/ jus-
tification and the materiality assess-
ment undertaken by YNH to form the
conclusion that no announcement was
required for the Turnkey Construction
Agreement entered into on June 20, 2016
and the subsequent termination of the
said agreement on April 1, 2022.
5. To provide the salient terms of the
Turnkey Construction Agreement en-
tered into on 20 June 2016.
We acknowledge our oversight of such [an]
announcement and shall seek advice from
the Adviser to rectify this oversight.
CO N TI N U ES O N PAGE 3
 F R I D AY M AY 2 6 , 2 0 2 3
Refiners
introduce fine
white sugar at
market price;
ceiling prices
remain on refined
and coarse sugar
BY IZZUL IKRAM
theedgemalaysia.com
PUTRAJAYA (May 25): The government
allows two refiners to sell fine sugar, a new
type, at market price effective May 25.
However, the existing ceiling prices remain
on refined and coarse sugar, according to
Domestic Trade and Cost of Living Min-
ister Datuk Seri Salahuddin Ayub.
Salahuddin said the approval for sugar
refiners to sell fine white sugar is effective
immediately.The minister, however, stressed
that the approval will not replace and dis-
rupt the supply of coarse and refined sugar
that are currently available in the market.
“The government also instructed MSM
Malaysia Holdings Bhd (MSM) and Cen-
tral Sugar Refinery Sdn Bhd (CSR) to
continue producing sufficient coarse and
refined white sugar and to sell [them] at
the set retail ceiling price of RM2.85/kg
(coarse) and RM2.95/kg (refined),” Sala-
huddin said, adding there are no changes
to the existing sugar ceiling prices.
“Action will be taken against sugar re-
finers that do not produce sufficient supply
of existing refined and coarse white sugar
in the market,” he said, adding the same
goes for any wholesalers and retailers who
selectively purchase or do not sell existing
refined and coarse white sugar to customers.
FROM PAGE 2
6. To clarify further why the Vendor (as
contractor) has to make upfront payment
to the First Beneficial Owner (as devel-
oper) based on the agreed profit-sharing
proportions ahead of the completion time
of the Mixed Development.To comment if
such term/arrangement is fair/reasonable
and in the best interest of YNH.
The upfront payment by the Vendor is a
requirement of the Turnkey Construction
Agreement and in return of the upfront
payment the Vendor secure the right to use
the land as security to be pledged to finan-
3 THEEDGE CEO MORNING BRIEF
H O M E
Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub speaks at the press conference
on the status of sugar supply in Malaysia on Thursday, May 25, 2023.
“The government agrees with this re-
quest (by the two refiners) because fine
white sugar will give consumers a choice
other than the existing coarse and refined
white sugar [in the market],” Salahuddin
told the press at the Putrajaya Internation-
al Convention Centre (PICC).
Specifically, Salahuddin said the condi-
tion the government has imposed on sug-
ar refiners to sell fine white sugar is that
there must be coarse and refined white
sugar supply of 42,000 tonnes a month.
Salahuddin noted the fine white sugar
prices set by MSM and CSR are moni-
tored by the Malaysia Competition Com-
mission (MyCC).
Previously, sugar refiners were not al-
lowed to sell fine white sugar as the in-
troduction of any new sugar product in
the market must first be approved by the
ministry as sugar is a controlled item pur-
suant to the Control of Supplies Act 1961.
Meanwhile, Salahuddin said ‘Ops Man-
is’ was carried out to identify the causes of
and solution to sugar shortage in several
states. He noted that the operation will
continue for another month to prevent
instances of sugar price gouging as well
as to ensure sufficient supply of sugar.
cial institution to finance the operation of
Vendor without restriction which is a fair
commercial term for both parties.
7. To justify further on the rationale for
the refund to be made conditional upon
the successful selling of the said Prop-
erty to the third party purchaser. In the
event the Proposed Disposal does not go
through and the Vendor is unable to find
a new purchaser, please clarify whether
the refund will continue to be held back
by the First Beneficial Owner indefinite-
ly. To also provide the salient terms and
clauses relating to such refund.To com-
LOW YEN YEING/THE EDGE
In comparison with regional peers, Ma-
laysia’s retail sugar prices are the cheapest
in the region, with the Philippines lim-
iting its sugar price at RM8.50/kg, fol-
lowed by Singapore and Vietnam both at
above RM6/kg, Indonesia (RM4.40/kg),
and Thailand (RM3.20 to RM3.50/kg),
according to MSM.
MSM and CSR have urged Putrajaya to
review the sugar retail price — in the form of
a price hike or floating price — to safeguard
the sustainability of the local sugar industry,
highlighting the industry has not received
any government subsidy for a decade.
For the financial year ended Dec 31,
2022 (FY2022), MSM sank into the red
with a net loss of RM178.71 million versus
a net profit of RM125.35 million a year
earlier, despite a 13.55% rise in revenue
to RM2.57 billion from RM2.26 billion
previously.
The sugar refiner attributed the drop
in bottom line to prolonged margin com-
pression of its domestic controlled price
retail segment and lack of subsidy.
At market close on Thursday, MSM’s
share price was up 22 sen or 26.5% to
RM1.05, making it one of the top gain-
ers on Bursa.
ment if this arrangement is fair/reason-
able and in the best interest of YNH.
In view for the First Beneficial Owner to
agree to lower the selling price to RM150
million and for them to further agree to
refund the differential amount of RM89.5
million, a generous reasonable time is re-
quired to be allowed to the First Beneficial
Owner in order to secure repayment. In
the event that the Vendor is unable to find
a new purchaser, the Vendor may have to
consider reviving the turnkey construction
agreement to recover the amount paid to
the First Beneficial Owner.
 F R I D AY M AY 2 6 , 2 0 2 3
KUALA LUMPUR (May 25): Ekuiti Na-
sional Bhd (Ekuinas) has started discus-
sions to crystallise its investments in sports-
wear retail group Al-Ikhsan Sports, said
Ekuinas chief executive officer Syed Yasir
Arafat Syed Abdul Kadir.
“We are open [to list Al-Ikhsan], in fact
we are having discussions on whether to
exit this year or not,” SyedYasir Arafat said
at a press conference after the fund’s 2022
results announcement.
Ekuinas is open to exit the investment
via initial public offering (IPO), or trade
sale, depending on the valuation that Ekui-
nas gets, the CEO added.
Ekuinas bought 35% in Al-Ikhsan
Sports in 2016 for RM68.6 million. Al-Ikh-
san Sports now operates 181 outlets.
In 2022, Al-Ikhsan Sports’ revenue
grew 72.4% year-on-year to RM485.4
million from RM281.6 million, while
earnings before interest, tax, deprecia-
tion and amortisation (Ebitda) before
extraordinary items more than tripled
to RM70.3 million, from RM18.7 mil-
lion. The strong rebound in retail sales
in 2022 lifted the group’s performance
Stiff competition in Malaysia’s deal pipeline, says Ekuinas
KUALA LUMPUR (May 25): After a
dry spell in new direct investments last
year, Ekuiti Nasional Bhd (Ekuinas)
CEO Syed Yasir Arafat Syed Abd Kadir
sees an improvement, although he “won’t
be too hopeful” of deal pipelines in 2023.
The private equity firm had looked into
over 50 potential opportunities in 2022, but
valuations of good quality assets were too
high at that point in time, he told a press
conference to announce Ekuinas’ 2022
financial results on Thursday (May 25).
This year, Ekuinas is focused on fur-
ther deploying its RM1.5 billion Direct
Tranche IV fund, as well as the RM100
million new fund called Dana Asas which
was announced by the government in
the revised Budget 2023.
It is also monitoring the exits of the
fund under its outsourced fund manag-
ers, which have underperformed Ekui-
nas’ direct investments.
“The challenge for funds like us is to
find quality deals in Malaysia. It is a small
market; a lot of companies are not region-
alists in outlook, and tied down to the
local economy,” Syed Yasir Arafat said.
There is also continued competition
from global funds, as there is too much
dry powder (short-term highly liquid as-
sets) in the market, particularly for deals
of US$50 million and above, or US$100
million and above, he said.
4 THEEDGE CEO MORNING BRIEF
H O M E
Ekuinas in talks
to explore IPO
or trade sale for
Al-Ikhsan exit
BY ADAM AZIZ
theedgemalaysia.com
SAM FONG/THE EDGE
Ekuiti Nasional Bhd (Ekuinas) CEO Syed Yasir
Arafat Syed Abdul Kadir (left) and chairman Raja
Tan Sri Arshad Raja Tun Uda at a press conference
after the fund’s 2022 results announcement.
BY ADAM AZIZ
theedgemalaysia.com
Merger and acquisition (M&A) ac-
tivities in Southeast Asia fell in 2022 to
US$533 million, from a record US$1
billion in 2021, according to data from
Mergermarket referenced by Ekuinas.
That said, strategic acquirers in South-
east Asia paid median 13.6 times EV/Ebit-
da valuation and 19.6 times median PER
for M&As in 2022, the data showed.
“There’s pressure to deploy capital; people
are willing to pay quite a fair bit of premium.
“From our perspective, we try to differ-
entiate from the local angle — knowing the
country, knowing the economy, knowing
how the market works, and not to have
misalignment of culture. I think that’s very
important for some of the entrepreneurs,”
Syed Yasir Arafat added.
Upside remains for pharmaceuticals,
O&G and logistics sectors
On the industry outlook, Syed Yasir Arafat
expects sectors such as medical and phar-
maceuticals to continue to perform well
this year, as well as logistics and oil and gas
(O&G). The retail segment, which grew
30% last year, will see softer performance,
especially in the food and beverage space.
“The electrical and electronic sector will
continue to be attractive for funds like us,
to support the turnaround of Ekuinas’
Tranche III Direct Fund last year.
Al-Ikhsan recorded sales of RM330 mil-
lion in 2019, and the strong rebound in
retail sales in 2022 lifted the group’s per-
formance to support the turnaround of
Ekuinas’Tranche III Direct Fund last year.
Ekuinas also “continues to explore op-
portunities with Orkim Sdn Bhd”, said
Syed Yasir Arafat, when asked if the fund
is looking to exit the shipping firm.
The fund, which owns a 95.5% stake
in Orkim, is potentially looking at sell-
ing the shipping company and is seeking
as much as RM1.5 billion, Bloomberg
reported, citing sources.
Orkim’s stake was acquired by Ekui-
nas in 2014 for almost RM346.3 million.
In 2022, Orkim’s revenue rose 23.5% to
RM227.9 million from RM184.5 million,
while Ebitda before extraordinary items
rose 53.7% to RM135.6 million, from
RM88.2 million. The company’s “stand-
out performance” in 2022 contributed to
the growth in Ekuinas’ Tranche II Direct
Fund, which posted a gross internal rate
of return of 11.9% per annum this year.
because we see that’s an area where Ma-
laysia has a competitive advantage.
“For the energy sector, while we see
strong demand, we are concerned about
money invested into the sector. I think the
challenge for the energy sector is that a
lot of funds are not allowed to invest in
sectors that are deemed as dirty, for ex-
ample,” he said.
“But that sector continues to grow,
we feel, and returns continue to be in-
teresting. But deploying capital will be
challenging, because exit may be chal-
lenging for us,” he added.
This year, Ekuinas has begun deploy-
ing its RM100 million Dana Asas for
Bumiputera companies, with the first
investee company being the Kaisar Far-
masi pharmaceutical chain owner Eagle
Cliffe (M) Sdn Bhd.
Ekuinas, which has received a total
RM4 billion capital injection from the
government over the course of its 14
years of operation, has directly invest-
ed into 24 companies and divested 13
of them to crystallise RM3.8 billion in
value. Cash and equivalents stood at
RM3.4 billion at end-2022.
Read also: Ekuinas rides on 2022
recovery as Tranche III Direct Fund
turns around after three years
 F R I D AY M AY 2 6 , 2 0 2 3
EU-Asean Business Council calls for acceptance
of RSPO scheme for palm oil exports
BY SURIN MURUGIAH
theedgemalaysia.com
KUALA LUMPUR (May 26): Europe
should not ignore the Roundtable Sus-
tainable Palm Oil (RSPO) scheme and
accept it as the basis for allowing palm oil
exports from Indonesia and Malaysia, said
EU-Asean Business Council Executive Di-
rector Chris Humphrey.
“The RSPO scheme should also be
supported to strengthen its certification
requirements so that the bulk of palm oil
exports from Indonesia and Malaysia can
be accepted into Europe,” Humphrey said.
“Like it or not, palm oil is here to stay,”
he said in an exclusive email interview with
theedgemalaysia.com.
Humphrey said that boycotting or deni-
grating palm oil provides no viable solution.
“Instead, we must channel our efforts
into demanding more decisive action to
address the issues and actively promote
adopting sustainable palm oil practices.
“By advocating for sustainability and sup-
porting responsible production, we can work
towards a more balanced and environmen-
tally conscious palm oil industry,” he said.
In 2018, an EU renewable-energy di-
rective required the phasing out of palm-
based transportation fuels by 2030 because
of their perceived link to deforestation.
Indonesia and Malaysia — which ac-
count for about 80% of the world’s palm
oil producers — have launched separate
cases with the World Trade Organisation,
saying the fuel measure is discriminatory
and constitutes a trade barrier.
Separately, RSPO, in a response to EU’s
new ruling, said in December 2022 it is
confident that its voluntary certification
standard will be an important tool for com-
panies in doing their risk assessment and
provide a clear contribution to their com-
pliance with the EU regulation.
“The EU is the world’s biggest market
for sustainable palm oil, with over 90%
of the palm oil imported into the region
certified under the CSPO (Certified Sus-
tainable Palm Oil).
“If the EU closes its doors, palm oil
producers will have no choice but to in-
crease their supply to markets with less
stringent or no requirements for sustain-
ability. Certification is, after all, costly,”
said Humphrey.
He noted that palm oil had played a vital
role in boosting economic growth for pro-
ducing countries like Indonesia and Ma-
5 THEEDGE CEO MORNING BRIEF
H O M E
laysia — crucial for developing countries
where the fruit is grown and harvested.
He said denying the industry’s past as
a destructive force that wreaked havoc on
the environment, communities, and human
rights would be useless.
“That said, following intense scruti-
ny and pressure from consumers, rights
groups, investors, importing countries, and
even the governments of palm oil-produc-
ing countries, the industry has begun to
clean up its act,” he said. “This, too, must
not be denied,” he added.
Humphrey said companies and plan-
tations that have become certified under
the RSPO scheme are working to ensure
traceability across their supply chains.
Additionally, he said there is commit-
ment at the world’s two largest palm oil
producers to zero-deforestation policies
and responsible land management, and
measures to protect high conservation val-
ue (HCV) areas, high carbon stock (HCS)
forests, and peatland are in place.
Humphrey said programmes had been
initiated to support smallholders with more
training, technical assistance, and financial
support and to address other social issues
related to palm oil production, like the pro-
tection of the rights of local communities.
“Let’s talk numbers. Palm oil-related de-
forestation fell by 42% in the first six months
of 2021, year-on-year (71% compared with
the first half of 2019), with 11,500 hectares
of forests lost in Indonesia, Malaysia, and
Papua New Guinea,” he said, citing a sat-
ellite analysis published by Chain Reaction
Research (CRR), a risk analysis group.
The analysis also noted that palm oil
deforestation was reduced to 19,894 ha
in the first half of 2020 from 40,000 ha
in the first half of 2019.
Filepic of a fresh fruit
bunch of oil palm.
Inset: EU-Asean
Business Council
Executive Director
Chris Humphrey
“Yes, as with all things, more needs to
be done. But the truth is that palm oil
production has become more sustainable
despite what naysayers say,” he said.
Transitioning to alternative oils is less
sustainable than palm oil
Humphrey added that transitioning to al-
ternative vegetable oils like sunflower, rape-
seed, or soybean is not a solution as they
have considerably lower yields per hectare
than palm.
“Because of its high yield, palm oil re-
quires only around one-ninth of the land
of its counterparts.
“To keep pace with growing food de-
mand would require 36 million hectares of
additional palm oil land, whereas soybean,
the second most popular oil crop, would
need 204 million more hectares,” he said.
Humphrey said that instead of offer-
ing only rhetoric, one solution that can be
provided is to support certification, which
will nudge the palm oil industry towards
even greater sustainability.
Thus, he concluded that efforts should
be made to reverse the pariah status of
palm oil in developed countries so that
products containing oil that is certified de-
forestation-free or sustainably produced
can be accepted back into the fold.
Read also:
MPOB producing high water-use
efficiency trees to protect future palm oil
yield
Malaysia’s palm oil production seen
falling in 2024 due to El Nino — MPOB
 F R I D AY M AY 2 6 , 2 0 2 3
KUALA LUMPUR (May 25): Public Bank
Bhd’s net profit for the first quarter ended
March 31, 2023 rose 22% to RM1.71 bil-
lion from RM1.4 billion a year earlier, due
to the absence of the prosperity tax.
In a Bursa Malaysia filing on Thursday
(May 25), Public Bank said revenue for
the quarter rose 25% to RM6.12 billion
from RM4.89 billion earlier, led by healthy
loans and deposit growth.
Earnings per share grew to 8.83 sen
from 7.21 sen.
Public Bank did not declare any divi-
dend for the quarter.
In a separate statement, Public Bank man-
aging director and chief executive officer Tan
Sri Dr Tay Ah Lek said the bank continued to
navigate through the challenges in the evolv-
ing operating environment and demonstrat-
ed resilience in its first quarter 2023 per-
formance, which was mainly supported by
commendable net interest income growth
and lower loan impairment allowances.
Reviewing its performance, Public
Bank said during the first quarter end-
ed March 2023, the group maintained a
healthy loan growth momentum at an an-
nualised growth rate of 5.0% to RM381.6
billion, largely supported by the domestic
loan portfolios, which grew by an annu-
alised rate of 5.4% to RM356.8 billion.
KUALA LUMPUR (May 25): Genting
Bhd posted a net profit of RM98.04 million
in the first quarter ended March 31, 2023
(1QFY2023), versus a net loss of RM199.68
million a year before, on the back of better
contribution from the leisure and hospitali-
ty division as a result of ongoing recovery in
regional travel and gaming demand after the
relaxation of Covid-19 restrictions.
As a result, the group posted earnings
per share of 2.55 sen in 1QFY2023, against
a loss per share of 5.19 sen a year ago.
The group’s adjusted earnings before
interest, tax, depreciation and amortisa-
tion (EBITDA) was at RM1.83 billion, a
41% increase from RM1.3 billion a year
ago, the casino-to-hospitality conglomer-
ate said in a filing with Bursa Malaysia on
Thursday (May 25).
Quarterly revenue was higher by 38.18%
to RM5.82 billion from RM4.21 billion.
The leisure and hospitality segment re-
corded a better profit before tax (PBT) of
RM1.6 billion in 1QFY2023, a 68% increase
from RM955 million a year before, as reve-
nue expanded 43% to RM4.78 billion from
RM3.33 billion during the same period.
The leisure and hospitality businesses
in Malaysia, Singapore, the US and the
Bahamas saw improvement in business
activities, except for the UK and Egypt,
which were affected by inflationary pres-
6 THEEDGE CEO MORNING BRIEF
H O M E
Residential properties financing grew at an
annualised rate of 6.1%, hire purchase financ-
ing at 11.5% and SME financing at 2.7%.
Public Bank said this has sustained the
group’s leading market share in residen-
tial properties financing, which stood at
20.6%, hire purchase financing (30.4%)
and domestic SME lending (19%).
On its overseas operations, Public Bank
said that in the first quarter of 2023, over-
seas operations contributed 8.1% to its
profit, mainly from Hong Kong and In-
Public Bank’s
dochina operations.
Public Bank Vietnam and Cambodian
1Q net profit up
Public Bank continued to deliver strong
profit performance. This is reflected in
22% to RM1.71
Public Bank Vietnam’s double-digit profit
growth of 24.5% year-on-year and Cam-
bil in absence of
bodian Public Bank’s 59.8%.
The group said Indochina will continue
prosperity tax
to be the group’s key focus growth area,
with continued expansion of branch net-
work as well as broadening of products
and services.
BY SURIN MURUGIAH Public Bank is targeting to open another
theedgemalaysia.com eight new branches in Vietnam to reach a
total of 40 branches by year end, it said.
It said domestic loan growth was mainly
contributed by residential properties financ-
ing, hire purchase financing as well as small Read also: MBSB earnings up 27.3% on
and medium enterprise (SME) financing. lower expected credit losses and opex
Genting returns
er, the adjusted EBITDA for the division
was lower mainly due to the weaker palm
to black in 1Q
product prices.
It also said the power division’s revenue
with RM98 mil
and adjusted EBITDA improved in the
current quarter due to higher generation
net profit
from the Banten power plant in Indonesia
following a shorter outage period in the
current quarter.
The oil & gas division recorded lower
BY JUSTIN LIM revenue and adjusted EBITDA mainly due
theedgemalaysia.com to weaker global crude oil prices in the
current quarter, it also noted.
On prospects, Genting said the glob-
al economic environment is expected to
gradually improve. However, downside
risks continue to predominate amid on-
going geopolitical tensions and concerns
surrounding the impact from monetary
policy decisions.
While Malaysia’s economic expansion is
expected to moderate in line with a slower
global economy, growth will continue to be
supported by domestic demand, it added.
sure, coupled with higher payroll and op- Shares in Genting closed down six sen
erating expenses. or 1.37% to RM4.33, giving the group a
Meanwhile, Genting said the plantation market capitalisation of RM16.79 billion.
division’s revenue for the current quarter
increased compared to last year due to
higher sales volume from the downstream Read also: GenM’s 1Q net loss narrows
manufacturing segment, partially offset 69% on better leisure and hospitality seg-
by weaker palm product prices. Howev- ment contribution
F R I D AY M AY 2 6 , 2 0 2 3 7 THEEDGE CEO MORNING BRIEF
 F R I D AY M AY 2 6 , 2 0 2 3
Acceleration in IT
assets impairment
pulls down TM’s
1Q net profit
BY LEE WENG KHUEN
theedgemalaysia.com
KUALA LUMPUR (May 25):Telekom Ma-
laysia Bhd (TM) reported a 2.9% decline in
net profit to RM330.1 million for the first
quarter ended March 31, 2023 (1QFY2023),
compared with RM339.85 million in the
same quarter a year ago, due to the group’s
decision to accelerate depreciation and im-
pairment of information technology (IT) as-
sets, in view of changes in market conditions.
As a result, its reported earnings before
interest and tax (Ebit) were 15.5% lower at
RM473.3 million, from RM560.4 million.
Quarterly revenue grew 2% to RM2.95
billion from RM2.89 billion previously,
driven by continuous growth across Unifi
and TM Global.
During the quarter under review,
the group’s capital expenditure stood at
RM413.1 million, or 14% of overall reve-
KUALA LUMPUR (May 25): Axiata
Group Bhd returned to the black for the first
quarter ended March 31, 2023 (1QFY2023)
with a RM73.85 million net profit versus a
RM42.97 million net loss a year earlier, driv-
en by higher share of results from associates,
mainly CelcomDigi Bhd, as well as lower
taxes and foreign exchange (forex) losses.
Quarterly revenue grew 7.92% to
RM5.38 billion from RM4.98 billion in
1QFY2022, mainly contributed by its mo-
bile operations in Indonesia and Cambo-
dia, infrastructure business and new rev-
enue segment from fixed broadband in
Indonesia.
The telecommunication group’s earn-
ings per share of 0.80 sen for the quarter
contrasted against loss per share of 0.50
previously, its bourse filing showed.
The group’s share of the financial re-
sults of CelcomDigi is recorded under con-
tinuing operations from last December,
8 THEEDGE CEO MORNING BRIEF
H O M E
nue, with a significant portion of this in-
vestment dedicated to fortifying its fibre
infrastructure, delivering new customer
acquisition, international subsea cables
investment and 5G fibre network deploy-
ment, to meet the government’s target of
80% coverage by year end.
Unifi ’s revenue for 1QFY2023 ex-
panded 4.3% to RM1.44 billion from
RM1.38 billion, contributed by growth
in the number of subscribers and aver-
age revenue per customer. Unifi fixed
broadband subscription increased 8.1%
to 3.08 million, propelled by aggressive
sales and promotions.
However, TM One saw a 6.7% drop
in revenue to RM721.9 million from
RM773.7 million, largely due to the im-
pact of price reduction and lower rev-
enue from one-off customer projects.
TM group chief executive officer Da-
tuk Imri Mokhtar expects 2023 to be a
challenging year, with changes in the regu-
latory landscape, heightened competition
and other market structure changes.
“As the national connectivity and dig-
ital infrastructure provider,TM will con-
tinue to execute the fiberisation plan to
support the government’s National Digital
Network (Jendela) programmes, as well
as the 5G rollout nationwide. TM looks
forward to continuing playing an active
role in the 5G implementation, leveraging
its nationwide fibre infrastructure, exten-
sive digital platforms (data centres, edge
nodes) and rollout experience,” he said in
a statement on Thursday (May 25).
At market close on Thursday, shares
of TM were down nine sen or 1.8% to
RM5, translating into a market capital-
isation of RM19.11 billion.
Axiata posts
RM74 mil net profit in
1QFY2023 amid higher
contributions from
associates, lower taxes
BY SYAFIQAH SALIM
theedgemalaysia.com
following the completion of the merger
between Celcom and Digi in November
2022, according to Axiata’s filing.
Axiata said its earnings before inter-
est, tax, depreciation and amortisation
increased 7.6% to RM2.42 billion from
RM2.24 billion, while earnings before in-
terest and tax fell 5.3% to RM603.8 mil-
Inari Amertron sees 37%
decline in 3Q profit on
lower loading volume
BY LEE WENG KHUEN
theedgemalaysia.com
KUALA LUMPUR (May 25): Lower load-
ing volume across all business segments re-
sulted in Inari Amertron Bhd registering a
36.6% drop in net profit to RM57.36 mil-
lion for the third quarter ended March 31,
2023 (3QFY2023) against RM90.48 mil-
lion in the same period last year.
Quarterly revenue came down 23.5% to
RM275.8 million from RM360.34 million.
It proposed a 1.4 sen dividend for the
quarter under review, to be payable on July 7.
In a filing with the stock exchange on
Thursday (May 25), outsourced semi-
conductor assembly and test player said
it experienced lower loading volume in
the radio frequency segment due to softer
smartphone demand. There was also lower
loading volume in the optoelectronics seg-
ment in the current quarter.
For the cumulative nine-month peri-
od, Inari’s net earnings slipped 15.6% to
RM257.22 million from RM304.7 million,
on the back of a 12.9% drop in revenue to
RM1.06 billion from RM1.21 billion.
On prospects, Inari expects improved
performance for the upcoming financial pe-
riod while remaining cautious on the back
of the uncertain global outlook and ongoing
slowdown in the semiconductor market.
The stock closed one sen or 0.4% higher at
RM2.26 for a market value of RM8.44 billion.
lion from RM637.9 million due to higher
depreciation and amortisation.
No dividend was declared for the quar-
ter under review.
“With its sustained operational excel-
lence, sound business fundamentals and fo-
cus on strategic key growth drivers, Axiata
is poised to continue growing as a TechCo,
reaching its ambition as the Next Generation
Digital Champion,” Axiata chairman Tan Sri
Shahril Ridza Ridzuan said in a statement.
“The board is committed to upholding
the values of Uncompromising Integrity,
Exceptional Performance (UI.EP) in Ax-
iata’s efforts to mitigate associated risks
faced within its operational markets.We
will continue to drive the operationalisa-
tion of the group’s sustainability efforts
to achieve our ESG targets,” he added.
Axiata’s share price finished down three
sen or 1% to RM2.96 on Thursday (May
25), valuing the group at RM27.17 billion.
 F R I D AY M AY 2 6 , 2 0 2 3
KUALA LUMPUR (May 25): 7-Elev-
en Malaysia Holdings Bhd’s (SEM) net
profit fell 35.69% to RM15.68 million in
the first quarter ended March 31, 2023
(1QFY2023) against RM24.38 mil-
lion in the same quarter a year earlier
(1QFY2022) due to lower profit from its
pharmaceutical segment.
However, the dip in earnings was less
drastic compared with the sharp 95% con-
traction in year-on-year earnings during
the fourth quarter ended Dec 31, 2022
(4QFY2022), when its net profit plunged
to RM2.65 million from RM29.44 million
a year earlier (4QFY2021).
Its phar maceutical ar m Car ing
Pharmacy Group Bhd reported a drop
in its gross profit margin to 19.4% in
1QFY2023 from 21.6% as sales of Cov-
id-related items which carried higher
product margins declined.
This was on top of lower sales produc-
tivity of newly acquired stores during the
refurbishment and rebranding period, said
the company in its Bursa filing on Thurs-
day (May 25).
Its earnings per share fell to 1.41 sen
from 2.16 sen.
For its quarter-to-quarter, however,
its net profit more than doubled from
RM2.65 million in the preceding quar-
ter (4QFY2022) due to lower staff-re-
KUALA LUMPUR (May 25): Dutch
Lady Milk Industries Bhd’s net profit fell
58.58% to RM8.52 million or earnings
per share of 13.3 sen in the first quarter
ended March 31, 2023 (1QFY2023), from
RM20.57 million or 32.1 sen in the same
quarter last year, as it was hit by the un-
precedented increase in the cost of dairy
raw materials and negative impacts of ex-
change rates predominantly against the
US dollar, despite higher revenue in the
current quarter.
Quarterly net profit was also dragged
down by RM5.1 million accelerated depre-
ciation and transition one-off costs from
its Petaling Jaya factory, the dairy product
manufacturer said in a bourse filing on
Thursday (May 25).
Quarterly revenue grew 18.16% year-
on-year to RM354.31 million, from
RM299.87 million, driven by continued
strong demand for dairy products and suc-
cessful festive campaigns.
On prospects, Dutch Lady expects
global dairy prices to decrease some-
what in the remainder of 2023, from
the current historically very high levels.
Against this backdrop, the group will
continue to focus on optimising its cash
flow to battle the current inflationary
headwinds and secure internal financing
9 THEEDGE CEO MORNING BRIEF
H O M E
7-Eleven’s
pared to RM839.98 million in 1QFY2023
on better performance by its convenience
1Q earnings
store segment.
It contributed RM655.98 million in rev-
down 35.69%
enue versus RM523.92 million on the back
of higher average per store day (APSD)
on lower profit
and customer count as consumer spending
and trading activities remained buoyant.
from pharmacies
Its core profit rose 2.47% to RM17 mil-
lion from RM16.59 million.
SEM said that the segment will contin-
ue to focus on the roll-out of its 7-Café
BY SUFI MUHAMAD store format with improved products and
theedgemalaysia.com in-store customer experience, which is
expected to contribute positively to the
growth of its fresh food category.
“We plan to complete the construction
of our new fresh food commissary in the
current financial year, which has a capac-
ity to serve up to 1,000 stores in Klang
Valley,” it said.
On its prospects, the group is cognisant
and remained steadfast in monitoring po-
tential headwinds such as global supply
chain disruptions and workforce supply
constraints.
“Essentially, we will take appropriate
lated costs and information technology measures to mitigate these impacts, as
(IT) maintenance expenses in the cur- necessary.”
rent quarter. Its share price closed unchanged at
However, revenue for 1QFY2023 rose RM2.04 on Thursday, with a market cap-
by 16.30% to RM976.92 million com- italisation of RM2.52 billion.
Read also:
Unprecedented
YTL Corp posts flat 3Q net profit
increase in cost of
dairy raw materials YTL Power’s 3Q net profit drops 49%
due to absence of gain on investment
weighs on Dutch disposal; declares 2.5 sen dividend
Lady’s 1Q earnings
Hextar Industries posts RM20.42 mil
net profit for 1Q on higher gross profit
BY JUSTIN LIM margin
theedgemalaysia.com
MBM Resources logs lower profit in
1Q on absence of non-operating gain
Flat 1Q profit for Petron Malaysia as
oil prices soften
Bumi Armada’s 1Q net profit up 8%
to RM201 mil on higher operating
for building and transitioning to the new income
manufacturing facility in Bandar Enstek,
Negeri Sembilan.
Shares in Dutch Lady fell two sen or Hap Seng Consolidated slips 67.52%
0.08% to RM26, bringing the group a in 1Q earnings, declares 10 sen
market capitalisation of RM1.66 billion. dividend
 F R I D AY M AY 2 6 , 2 0 2 3
KUALA LUMPUR (May 25): Sime Dar-
by Property Bhd (SDP) sees 2023 to be a
challenging year for the property industry
due to rising raw material prices and the
recent hike in the overnight policy rate
(OPR) to 3%.
Despite the pressure, the property de-
veloper remained optimistic that it could
deliver its sales target of RM2.6 billion
for the financial year of 2023 (FY2023).
“I think it is a difficult time especially
today, as you see a lot of price increases.
There is a lot of pressure on property de-
velopers to stabilise margins, but we be-
lieve that we will be able to deliver, not
just sales numbers but also be able to
deliver our products to the consumer,”
SDP group managing director Datuk Az-
mir Merican told a virtual briefing on the
group’s results for the first quarter ended
March 31, 2023 (1QFY2023).
SDP has set a lower sales target in
FY2023, compared with RM2.6 billion
the year before. The group exceeded its
target in FY2022, achieving RM3.7 bil-
lion in sales.
On why it had lowered its sales target,
SDP said that the group is weighing the
continued economic challenges globally.
“As for SDP, we actually brought for-
ward RM816 million worth of industrial
KUALA LUMPUR (May 25): Affin Bank
Bhd expects a slowdown in loan growth
to between 10% and 11% for the finan-
cial year ending Dec 31, 2023 (FY2023),
amid headwinds from the slowdown in
the US and European markets caused by
the higher interest rate environment, its
chief executive officer Datuk Wan Razly
Abdullah Wan Ali said.
He projects Affin Bank’s loan growth
to slow this year from the 15.4% growth
in FY2022. In FY2021, the bank achieved
an 11.1% loan growth.
“We see a lot of headwinds coming
this financial year. The slowdown in the
US and European markets will have a
knock on effect on Asia as well as Malay-
sia. Therefore, we forecast a slowdown in
our loan growth,” he told a press confer-
ence after the banking group’s 47th annual
general meeting on Thursday (May 25).
“Although we still see a lot of business
opportunities in Malaysia, we are cautious
[about our outlook]. We see that people
want to preserve their cash and there-
fore will spend less. Disposable income
is shrinking, our customers are in trouble.
They seek assistance from the bank, we
will see how we can restructure the fa-
cilities and support them in these tough
times,” Wan Razly said.
Affin Bank will release its financial re-
10 THEEDGE CEO MORNING BRIEF
H O M E
product launches that had been slated for
Sime Darby
2023 as we reacted to meeting the increase
in demand for industrial properties,” SDP
Property
said when contacted by The Edge.
The group assured that it will look for
optimistic about
opportunities and introduce products that
resonate with market demand.
hitting sales
Nonetheless, SDP remains cautious for
the second half of 2023 (2HFY2023) on the
target despite
back of the OPR hike, said SPD chief mar-
keting and sales officer Datuk Lai Shu Wei.
challenging
“For the sales outlook, I think we have
seen in 1Q2023, we are still driving a very
environment
healthy and good sales momentum, and we
are also very encouraged with what we do.
“We are also very cautious for the 2H
of the year — as you know the OPR rate
BY ANIS HAZIM has been raised, and I think the sentiments
theedgemalaysia.com from the market is to be a bit more cau-
tious, but we will continue to be very en-
gaging with our customers,” he said.
For 1QFY2023, the group’s net prof-
it rose 17% to RM60.67 million from
RM51.84 million previously, while reve-
nue for the quarter rose 43% to RM685.33
million from RM480.33 million a year ear-
lier. The results were mainly contributed
by its property development segment.
Read the full story
Affin Bank sees
ing some RM400 million, of which 80%
will be used for digitalisation initiatives,
slowing loan
including the launch of a new mobile app
next month.
growth this year
In FY2022, Affin Bank’s cumulative net
profit more than doubled to RM1.3 billion
amid rising
from RM526.93 million in the previous
year, driven by higher net interest income
interest rates
and the divestment of Affin Hwang Asset
Management Bhd (AHAM). Cumulative
revenue increased to RM3.3 billion from
RM2.24 billion.
BY SYAFIQAH SALIM Gross impaired loan ratio improved to
theedgemalaysia.com 1.97% from 2.54% in the previous year,
while net impaired loans
sults for the first quarter ended March 31, stood at 1.27% versus
2023 (1QFY2023) on Friday. 1.89% in FY2021.
According to Wan Razly, the bank is The current sav-
striving to expand its net interest margin ings account and
(NIM) from 2.01% last year. Return on investment account
equity (ROE) is expected to increase to (CASA) ratio in-
7% from 5.4%. creased to 23.50%
“We are working hard to expand our from 23.04%.
NIM and I think it is too early to
make a forecast now. I know it
is tough, but we continue to
focus on growing our busi-
ness while improving the
asset quality,” he added.
On capital expendi-
ture (capex), the CEO
said the bank is allocat-
 F R I D AY M AY 2 6 , 2 0 2 3
Khazanah
prices US$1.5
bil sukuk,
conventional
bond offerings
Bernama
KUALA LUMPUR (May 25): Khaz-
anah Nasional Bhd has successful-
ly priced a US$1.5 billion (RM6.9
billion) dual-tranche senior offering,
comprising a five-year US$750 mil-
lion sukuk due 2028 and a 10-year
US$750 million conventional bond
due 2033.
The issuance marked its first US
dollar-rated sukuk and corporate
bond out of its newly established
US$5.0 billion Multicurrency Sukuk
Issuance Programme and US$10.0
billion Euro Medium Term Note Pro-
gramme through its wholly-owned
special purpose vehicles, Khazanah
Global Sukuk Bhd and Khazanah
Capital Ltd.
Khazanah’s last issuance was the
unrated US$1 billion sukuk in 2021.
In a statement on Thursday (May
25), managing director Datuk Amirul
Feisal Wan Zahir said the overwhelm-
ing and widespread reception of its
maiden rated sukuk and bond un-
derlined investors’ continuous con-
fidence in its creditworthiness and
long-term strategy, amplifying Khaz-
anah’s standing in the global capital
markets.
“The issuance, which is carried
out amidst volatile market conditions,
will be the benchmark for Khazanah’s
credit as we continue to rebalance our
portfolio and strengthen our balance
sheet,” he said.
Amirul Feisal said the proceeds
would be utilised for Khazanah’s
general investments, refinancing of
borrowings and working capital re-
quirements.
The securities will be listed on
Bursa Malaysia Securities Bhd (un-
der an Exempt Regime), Labuan In-
ternational Financial Exchange Inc
and the Singapore Exchange Secu-
rities Trading Ltd.
BofA Securities, CIMB, DBS
Bank Ltd, JPMorgan, Maybank,
MUFG Bank and OCBC Bank act-
ed as joint lead managers and joint
bookrunners.
11 THEEDGE CEO MORNING BRIEF
H O M E
Focus Point
to continue
expanding optical
biz domestically,
eyes more
overseas markets
for F&B
BY ANIS HAZIM
theedgemalaysia.com
KUALA LUMPUR (May 25): Malaysia
continues to be the core market for Focus
Point Holdings Bhd’s optical business, said
its president and chief executive officer Da-
tuk Liaw Choon Liang.
While expanding its optical business do-
mestically, the optical retail chain store op-
erator said it is planning to grow its food
and beverages (F&B) segment overseas.
“For optical, we have no plan for the next
three years. But for F&B, definitely, because
currently we have [operations] in Brunei and
the Philippines, and we are still talking to oth-
er potential investors,” Liaw told reporters
Heatwave spells
trouble for ringgit
bonds as food
prices to soar
BY MATTHEW BURGESS
Bloomberg
(May 25): A stuttering rally in Malaysian gov-
ernment bonds may run into another road-
block as a heatwave sweeping across South-
east Asia threatens to drive up inflation.
Benchmark yields are likely to face fur-
ther upward pressure if faster price gains
prompt Bank Negara Malaysia to tight-
en policy again. Turbulence in Treasuries
fuelled by the prospect of a US default
may also stoke volatility in the near term.
Inflation risks “may be coaxing a few
to punt that BNM could hike again”, said
Philip McNicholas, Asia sovereign strategist
at Robeco Group in Singapore. If dollar
strength resumes, another hike is possible
as “recent GDP and BoP data signalled
Malaysia’s dissaving trend persists, so the
after hosting the group’s 14th annual gener-
al meeting (AGM) on Thursday (May 25).
He noted that the group currently has
a total of 186 owned and franchised op-
tical outlets, while its F&B arm has 32
Komugi outlets in Malaysia, the Philip-
pines and Brunei.
“We are still expanding the franchise busi-
ness (for optical) and in fact this year we
want to launch a new scheme of franchise.
“For optical, for the short period — with-
in the next three to five years — we have no
plan to go outside the Malaysian market and
we really want to focus in Malaysia,” he said.
Specifically, the group intends to further
expand its new brand, Optometris Ang-
gun, this year. The mid-to high-end brand
targeting the Malay demographic which
was launched in March 2022.
Meanwhile, Liew expects tourism recov-
ery in Malaysia to boost its retail business.
“We can see that tourists are a very im-
portant segment because we have several
locations attourist spots [such as Pavilion
Bukit Bintang, Suria KLCC and Genting
Premium Outlets],” he said, adding that
prices in Malaysia are much more com-
petitive and there is the option to shop at
duty free zones.
Read also: Focus Point’s 1Q earnings up
5.8%, declares 1.5 sen dividend
only way to shore up the FX and adjust
saving behaviour would be a hike”.
The odds are stacked against ringgit bonds
after the central bank warned that inflation
may flare up again, with commodity prices
and an impending reduction in domestic sub-
sidies among the key drivers. Global funds
halted a five-month buying spree in Malay-
sian sovereign debt in April amid uncertainty
over the US interest-rate outlook.
Investors have turned cautious about
ringgit bonds after pushing 10-year yields
to the lowest since March 2022 earlier this
month on bets that borrowing costs may
have peaked. The shift in sentiment comes
as authorities warn that the ongoing hot
weather may hit the nation’s food supplies.
Malaysia’s food inflation “certainly”
faces an upside risk from the scorching
temperatures that are expected to last un-
til August, according to Moody’s Investors
Service, which thinks that another rate hike
is possible.
Economists expect a report due Friday
to show that the nation’s annual consum-
er-price growth eased to 3.3% in April from
3.4% in March.
Read the full story
 F R I D AY M AY 2 6 , 2 0 2 3
KUCHING (May 25) :The High Court here
on Thursday (May 25) allowed the applica-
tion by the Malaysian federal government
and Sarawak state government to strike out
a suit filed by Sarawakian Dorus Katan Ju-
man @ Theodorus Katan and 10 others, who
are challenging the validity of the Malaysia
Agreement 1963 (MA63), which saw Sabah
and Sarawak forming Malaysia in 1963.
The decision was made by Judicial
Commissioner Alexander Siew How
Wai, who also ordered the plaintiff to pay
RM10,000 in costs.
Siew, in his decision, said the suit shows
no reasonable cause of action and was mis-
conceived, more than anything else.
“The Federal Constitution (FC) is the
supreme law of the nation. Under the FC,
Sabah and Sarawak are a part of Malaysia.
Sabah and Sarawak cannot be not part of
Malaysia without the necessary amend-
ments to the constitution, which would
require a two-third majority of Parliament
and the consent of Sabah and Sarawak.
“This court cannot disregard or rewrite
the FC as this court could be guilty of do-
ing, if this court were to grant the declara-
tions sought in this suit. In the humble view
of this court, after due consideration, this
suit is obviously unsustainable. The appli-
cation to strike out the suit under Order 18
of the Rules of Court is allowed,” Siew said.
Senior federal counsels Shamsul Bolhas-
san, Ahmad Hanir Hambaly, Liew Horng
Bin, and Mohd Zain Ibrahim along with
federal counsel Athina Sim appeared for
the Malaysian government while Datuk JC
Fong and Nicholas Bowie Anak Buyong
appeared for the Sarawak government.
KUALA LUMPUR (May 25): The High
Court in Seremban on Thursday (May 25)
upheld a lower court decision that the Pub-
lic Works Department (JKR) and govern-
ment are liable for causing the injuries of
an 18-year-old motorcyclist five years ago
when an uprooted tree landed on him on
a federal road.
Judge Datuk Azizul Azmi Adnan ruled
that if JKR had properly monitored and
maintained the tree, Iqmal Izzuddeen
Mohd Rosthy would not have suffered
his serious injuries.
The judge also upheld the RM216,949
damages awarded to Iqmal Izzuddeen for
his injuries, medical expenses and future
medical expenses.
Noting the argument that the local
council bore responsibility for the cut-
ting of trees, Azizul Azmi ruled that since
the incident took place on a federal road,
it was JKR’s duty to maintain the road to
ensure it may be used by the general pub-
lic for passage.
12 THEEDGE CEO MORNING BRIEF
H O M E
High Court
strikes out 11
Sarawakians’
suit seeking state
independence,
MA63 null and
void declaration
BY HAFIZ YATIM
theedgemalaysia.com
Counsel Voon Lee Shan appeared for
Dorus Katan and the other 10 plaintiffs.
The outcome of the case was confirmed
by Shamsul and Liew separately to The Edge.
Reliefs sought
Dorus Katan and others had named the
Malaysian, Sarawak and UK governments
as respondents in the suit.
They are seeking a declaration that the
MA63 was not a binding international
agreement by virtue of its failure to com-
ply with the requirement of international
law or rule for the making of treaties —
that only sovereign states can make binding
agreements with each other.
They further sought a declaration that
the UK government’s purported decolo-
nisation of Sarawak and Sabah in 1963 by
transferring the two colonies to the Malay-
High Court: JKR liable
for injuries suffered
by motorcyclist
when uprooted
tree fell on him
BY HAFIZ YATIM
theedgemalaysia.com
“JKR may not be responsible for the
beautification of public roads or the main-
tenance of the aesthetics of the trees that
are planted by the roadside, but this does
not detract it from its duty to take rea-
sonable care to ensure that risks to road
users from falling trees are appropriately
mitigated,” Azizul Azmi wrote in his 12-
page judgment available online.
The May 1, 2018 incident happened
an Federation (renamed Malaysia) was not
lawfully completed in a manner consistent
with the right of people to unconditional-
ly exercise self-determination as required
by the UN General Assembly Resolutions
(UNGAR) 1514XV & 1541XV and inter-
national law principles, nor in accordance
with the Manila Accord 1963.
This, they claimed, required the UK and
Malaya to seek the consent of the people
in compliance with UNGAR 1541 to hold
a referendum before establishing the pro-
posed federation and resolution of the Phil-
ippines’ claim on a part of Sabah.
They also sought a declaration that as
a consequence of the said breaches of in-
ternational law, the integration of North
Borneo and Sarawak into the Malayan fed-
eration was wrongful and unlawful, and
that the Malaysian government’s continued
control of the sovereignty of the two states
and their territories is unlawful, and the two
territories must forthwith be decolonised
for independence.
Alternatively, they sought a declaration
that if MA63 was validly made in accord-
ance with international law, it was terminat-
ed by the federal government of Malaysia’s
multiple wilful breaches of the agreement
(acknowledged by the federal and state gov-
ernments), together with the neglect and
failure to faithfully comply with the treaty
amounting to “wilful discontinuance” of
the treaty over five decades.
They also sought damages and the cost
of the action.
Read the full story
when Iqmal Izzudden was riding his
motorcycle on Jalan Rasah in Seremban
where he stopped at a traffic light near
the junction to the Rasah toll plaza on
the North-South Expressway. Suddenly
a nearby tree uprooted and fell on him
resulting in him suffering serious injuries,
including multiple fractures to his arms,
ribs and jaw.
JKR and government had argued in the
appeal that JKR bore no responsibility to
maintain trees, and that its responsibili-
ty was limited to proper maintenance of
federal roads.
They further argued that if the trees
blocked roads or interfered with road re-
lated infrastructure, then JKR has a duty
to clear the roads. They insisted that the
responsibility for the maintenance of way-
side trees lay with the local council, namely
the Seremban City Council.
Read the full story
 F R I D AY M AY 2 6 , 2 0 2 3
Govt reviewing
gaming law
amendments
to ensure more
comprehensive
enforcement,
regulation
BY IZZUL IKRAM & H AILEY CHUNG
theedgemalaysia.com
PUTRAJAYA (May 25): The Ministry of
Finance (MOF) is eyeing amendments to
gaming laws to ensure the government will
be able to enforce and regulate licensed
gambling activities and online gambling
more comprehensively, according to Prime
Minister Datuk Seri Anwar Ibrahim.
Anwar, who also holds the finance min-
KUALA LUMPUR (May 25):The Imbal-
ance Cost Pass-Through (ICPT) mecha-
nism for the period of Jan 1 to June 30 has
saved the government some RM5.4 billion,
according to Natural Resources, Environ-
ment and Climate Change Minister Nik
Nazmi Nik Ahmad.
The ICPT entailed a 20 sen/kWh sur-
charge to non-residential customers, name-
ly industrial and commercial users (high
voltage and medium voltage).
Nik Nazmi told the Dewan Rakyat
on Thursday (May 25) that the govern-
ment’s subsidy bill towards the current
ICPT period amounts to RM10.76 billion,
versus RM16.16 billion for the previous
six-month period of between July and De-
cember last year.
“This means the government has made
subsidy savings of RM5.4 billion for the
period of Jan 1 to June 30, 2023, with the
costs being passed to targeted users,” the
Setiawangsa Member of Parliament said.
“Although non-residential users in the
medium- and high-voltage category are
subject to an ICPT surcharge of 20 sen/
kWh, the government is still subsidising
RM1.93 billion or a surcharge of seven
sen/kWh,” he added.
The minister was responding to a ques-
tion posed by Kota Melaka MP Khoo Poay
Tiong on the government’s subsidy savings
due to the ICPT adjustment made for the
current period.
The electricity tariff surcharge or
rebate is adjusted every six months
13 THEEDGE CEO MORNING BRIEF
H O M E
ister portfolio, said the gaming legislation
being reviewed are the Common Gaming
Houses Act 1953, Pool Betting Act 1967,
Lotteries Act 1952 and Betting Act 1953.
“It is hoped with the [amended] laws, the
government will be able to enforce and reg-
ulate licensed gambling activities and online
gambling more comprehensively,” he said
in a written reply on Wednesday (May 24)
to a question posed by Sungai Siput Mem-
ber of Parliament Kesavan Subramaniam.
Kesavan’s question pertained to wheth-
er the MOF intends to amend the Com-
mon Gaming Houses Act to make penalties
and fines heavier towards curbing illegal
gambling syndicates, which he claimed are
rampant in the market.
Anwar said the government strongly en-
courages cooperation among all parties to
channel any information with regard to
illegal gambling activities directly to the
relevant authorities for appropriate action
to be taken.
“Cooperation from all levels of society
to combat illegal gambling activities is ex-
pected to curb illegal gambling activities
more effectively,” he added.
Govt saves RM5.4
bil under Jan to June
2023 ICPT scheme,
says Nik Nazmi
BY IZZUL IKRAM & HAILEY CHUNG
theedgemalaysia.com
based on fuel generation prices in the
previous six months under the ICPT
mechanism.
Touching on adjusting the subsidy on
T20 electricity users, Nik Nazmi said it
will be implemented with the Main Data-
base (Padu), which will be used to manage
and coordinate distribution of subsidies to
eligible groups. Padu is slated to be com-
pleted by year-end,
Meanwhile, Nik Nazmi underlined that
Malaysia’s reserve margin of 40% to 50%
is another factor that adds to the costs of
electricity tariffs, and stressed the ministry
will not approve any new unsolicited inde-
pendent power purchasers outside of the
Planning and Implementation Commit-
tee for Electricity Supply and Tariff power
generation plan.
Moreover, in addressing the excess elec-
tricity in Malaysia’s power grid, Nik Nazmi
said there is a need to upgrade grid inter-
connection to enable the nation to export
its excess electricity capacity.
THE EDGE FILE PHOTO
Estimated RM1.6 bil
required for cooking
oil subsidies in 2023,
says domestic trade
deputy minister
BY HAILEY CHUNG & IZZUL IKRAM
theedgemalaysia.com
KUALA LUMPUR (May 25): An esti-
mated RM1.6 billion is required in 2023
for the implementation of the cooking
oil stabilisation scheme (Coss), said
Deputy Minister of Domestic Trade and
Cost of Living, Fuziah Salleh.
The estimated amount is above the
earlier allocation of RM500 million
for Coss in 2023, and is still subject to
fluctuations in the price of crude palm
oil (CPO), she said during the ques-
tion-and-answer time in Dewan Rakyat
on Thursday (May 25).
The allocation is based on the min-
istry’s policy to provide 60,000 metric
tonnes of cooking oil per month, which
is approximately 60 million of 1kg cook-
ing oil packets per month, Fuziah said.
The ministry has appointed 366
packaging companies to supply subsi-
dised cooking oil packets in the market,
Fuziah added.
In 2022, the government had spent
RM2.42 billion for the implementation
of Coss, higher than the RM400 million
set aside in the government’s budget,
she said.
“In general, the amount of allocation
or funds to provide subsidised cooking
oil is subject to the movement of CPO
prices. If the price of CPO increases,
then the funds required to implement
the programme will also increase,” Fu-
ziah explained.
The deputy minister was responding
to Kepong member of Parliament Lim
Lip Eng, who asked for the approved
funds for cooking oil subsidies in 2022
and 2023.
 f r i d ay m ay 2 6 , 2 0 2 3
h o m e
KUALA LUMPUR (May 25): A business-
‘Datuk Roy’,
man known as “Datuk Roy” together with
a Malaysian Anti-Corruption Commission
MACC officer
(MACC) officer claimed trial to two charg-
es each for soliciting and receiving bribes in
charged
return for not investigating former prime
minister Tan Sri Muhyiddin Yassin’s son
with bribery
for alleged wrongdoing linked to the Jana
Wibawa programme.
for keeping
“Datuk Roy”, or Mohd Hussein Mohd
Nasir, together with the officer Mohd Ra-
Muhyiddin’s
syidi Mohd Said had both pleaded not
guilty to the two charges at the Sessions
son out of Jana
Court on Thursday (May 25) before judge
Azura Alwi.
Wibawa probes
In the joint charges, one charge read
out to them is for allegedly soliciting
RM400,000 while the second charge is
for receiving RM240,000 as an induce-
ment allegedly to not call up Datuk Fakhri by Timothy Achariam
Yassin Mahiaddin to the MACC head- theedgemalaysia.com
quarters for investigations into the Jana
Wibawa scandal.
This money was allegedly offered to
them by a person named Dalena Berhan
as an inducement not to remand Fakhri.
The offences were said to have been
committed in March this year.
Separately, at another Sessions Court,
“Datuk Roy” was slapped with one more
charge of soliciting RM2 million as an in-
ducement to lessen businessman Adam
Radlan Adam Muhammad’s Jana Wiba-
Home minister:
PUTRAJAYA (May 25): Minister of
Home Affairs (KDN) Datuk Seri Saifud-
Replacing Iris
din Nasution Ismail does not rule out the
possibility of replacing Iris Corp Bhd as the
Corp in NIISe
contractor of the National Integrated Im-
migration System (NIISe), if the identity
project still on
products and solutions provider is unable
to implement the project.
the cards
In a written reply on Wednesday (May
24) to a question posed by Kota Melaka
Member of Parliament Khoo Poay Tiong
on the implementation status of NIISe,
Saifuddin said the project is current- by Izzul Ikram & Hailey Chung
ly in the requirement and design study theedgemalaysia.com
phase, and is expected to be operational
in August 2025.
“However, if the existing contractor [Iris
Corp] is found to be unable to implement
the NIISe project, the government will ap-
point another contractor who is truly capa-
ble of implementing the project to ensure
the new system for immigration services
can be realised,” he added.
Saifuddin reiterated that NIISe is
aimed at replacing the current Malay-
sian Immigration System (myIMMs),
which the Malaysian Immigration De-
partment has been utilising for over 20
years. KDN has deemed myIMMS to be
outdated and no longer capable of meet-
14 TheEdge CEO morning brief
wa-linked charges, alter witness testimonies
against Adam Radlan and decrease his bail.
To this, “Datuk Roy” pleaded not guilty
before judge Suzana Hussain.
Adam Radlan, who is also Parti Ber-
satu deputy division chief for Segambut,
was previously charged at the Shah Alam
and Kuala Lumpur Sessions Courts with
five counts of being involved in RM6.1
million alleged bribes linked to Jana
Wibawa.
If “Datuk Roy” and Rasyidi are convict-
ed for any of the cumulative three charg-
es framed under Section 16(a)(A) of the
MACC Act 2009 and punishable under
Section 24(1) of the same Act, they may
be sentenced to a maximum of 20 years in
jail, and a fine of not less than five times
the amount involved in the offence or
RM10,000, whichever is higher.
Earlier on Thursday, Azura allowed for
the first case to be transferred to Suza-
na’s court.
reuters During proceedings at Suzana’s court,
she set bail at RM15,000 with one surety
for Hussein, 53, and RM7,000 with one
surety for Rasyidi, 42.
Both men are required to surrender
their passports and report to the MACC
headquarters periodically until their case
is disposed of.
Suzana also fixed July 20 for the next
mention of the case.
ing the immigration needs in the future.
In a bourse filing on Wednesday, Iris
announced KDN had extended its whol-
ly-owned subsidiary Iris Information Tech-
nology Systems Sdn Bhd’s (IITS) contract
to provide NIISe by 12 months from Sept
1, 2025, to Aug 31, 2026.
Following news of the contract exten-
sion, shares in Iris Corp gained as much as
14.3% to 12 sen on Thursday. At 3.28pm,
it was trading at 11.5 sen with 19.75 mil-
lion shares traded — more than double its
200-day average trading volume of 9.71
million shares.
At 11.5 sen, the company is valued at
RM358.18 million.Year-to-date, the coun-
ter has fallen 11.54%.
It is worth noting that back in Febru-
ary, Iris Corp inked a share sale agree-
ment to offload an 80% stake in IITS for
RM70 million cash to Tass Tech Technol-
ogies Sdn Bhd, which is wholly owned
by Tass Tech (M) Sdn Bhd.
Iris Corp said the deal, which is ex-
pected to conclude in August, will en-
able the company to unlock its invest-
ment in IITS and contribute positively
to its cash flow, with proceeds to be used
for working capital and future business
expansion.
 f r i d ay m ay 2 6 , 2 0 2 3
China warnings flash across
global markets as growth disappoints
(May 25): China’s muted economic re-
bound, and Beijing’s reluctance to deploy
large-scale stimulus, are reverberating
around the globe, crushing commodi-
ty prices and weakening equity markets.
Investors are pegging back their ex-
pectations for the world’s second-biggest
economy as worries mount that its recov-
ery from pandemic restrictions has lost
momentum.
Recent data suggest gross domestic
product growth this year will be closer
to the government’s target of about 5%,
contrary to expectations of a large over-
shoot formed earlier in the year. The fig-
ures also show a lopsided rebound that’s
being led by consumer services, while
industrial activity lags far behind.
“People are adjusting their China re-
covery expectations lower,” said Chaohui
Guo, an analyst at Beijing-based invest-
ment bank China International Capital
Corp.
In equity markets, the CSI 300 Index
has given up about half its gains from the
so-called reopening trade that started in
November, while the yuan is signalling
an economy in distress after breaking
through the closely-watched 7-per-dol-
lar level.
In the crisis-ridden property market,
sales are slowing after an initial rebound.
Combined with the persistent financial
troubles of real estate developers, that’s
hampering new projects in a sector which
accounts for about 20% of China’s GDP
after including related sectors. Infrastruc-
ture spending is being constrained by the
hefty debt loads of local governments,
15 TheEdge CEO morning brief
w o r l d
by Tom Hancock & Sofia Horta e Costa
Bloomberg
Disappointing
construction
activity is weighing
heavily on many
commodities markets.
symbolised this week by an 11th hour
bond repayment by a state-owned firm.
Disappointing construction activity is
weighing heavily on many commodities
markets. Copper — long considered a
barometer of an economy’s health be-
cause of its wide range of uses — has
dived below US$8,000 a ton while iron
ore has breached US$100, unwinding all
of the gains made after Beijing called time
on its Covid Zero policies late last year.
China is the world’s biggest buyer of
items like crude oil and copper, and its
vast steel industry accounts for well over
half of global iron ore demand.
Reflecting China’s services-led recov-
ery, oil prices have fared better after Bei-
jing abandoned its restrictions on trav-
el. But other energy products keyed to
industrial activity are feeling the pinch.
The price of coal, China’s mainstay fuel
that underpins its industrial base, has
dropped 18% since the beginning of the
year. Flagging demand in the US and
Europe is partly to blame, weighing on
China’s exports of manufactured goods.
“There was a lot of expectation that
you would see quite a strong year in Chi-
na,” said Neil Beveridge, a senior ana-
lyst at Sanford C Bernstein. “What we’re
seeing right now is fairly weak China re-
covery in terms of industrial production.
We haven’t seen domestic consumption
really come through and exports have
been a problem.”
Among equities, the worst perform-
ers this year are stocks tied to consumer
spending, reflecting concerns over the
fragility of the consumption-led recov-
ery. Fears over China’s growth have also
contributed to a rout in European luxury
stocks including LVMH and Gucci-owner
Kering SA — wiping about US$60 bil-
lion from the sector over two days this
week. International investors are also sell-
ing mainland equities, with outflows ex-
ceeding US$1 billion on one day alone.
“The growth story is not what people
thought it would be,” said Alicia Garcia
Herrero, chief Asia Pacific economist at
Natixis SA. There was too much opti-
mism about households spending down
their excess savings in particular, she said.
“In China, its fear-related excess savings,
and that fear has not changed.”
China’s flagging growth, particularly
since a tepid set of April activity figures
released earlier this month, have amped
up calls for more central bank and fiscal
support to bolster the economy. But Bei-
jing is likely to take a longer view and re-
sist adding any large-scale stimulus now,
preferring to save its fiscal ammunition
for next year, Garcia Herrero said.
In addition, base effects from last
year’s extended lockdown of Shanghai
should be highly favourable to growth
rates in the second quarter, further re-
ducing the need for action.
That low base could ultimately shape
China’s response, irrespective of how
markets are responding to its economic
woes. “We don’t expect policymakers to
unleash major stimulus, as the 5% GDP
growth target is still well within reach,”
economists at Goldman Sachs Group Inc
said in a note.
How the recovery fares in the second
half “hinges on whether consumer, busi-
ness, and investor confidence can be re-
built in time, as a persistent lack of confi-
dence could eventually trigger a negative
feedback loop that results in more pro-
longed weakness”, they added.
 f r i d ay m ay 2 6 , 2 0 2 3
bloomberg
Germany endures
first recession
since Covid on
consumers
by Alexander Weber
Bloomberg
(May 25): Germany suffered its first reces-
sion since the start of the pandemic, extin-
guishing hopes that Europe’s top economy
could escape such a fate after the war in
Ukraine sent energy prices soaring.
First-quarter output shrank 0.3% from
the previous three months following a 0.5%
drop between October and December, the
statistics office said Thursday. Its initial
WASHINGTON (May 25): The number
of Americans filing new claims for unem-
ployment benefits rose moderately last
week and the prior week’s data was re-
vised sharply lower, suggesting persistent
labour market strength.
Initial claims for state unemployment
benefits increased 4,000 to a seasonal-
ly adjusted 229,000 for the week ended
May 20, the Labor Department said on
Thursday (May 25). Data for the prior
week was revised to show 17,000 fewer
applications received than previously re-
ported. Economists polled by Reuters had
forecast 245,000 claims for the latest week.
Though claims surged recently, boosted
by fraudulent applications in Massachu-
setts, they remain at levels consistent with
a still-tight labour market.
The low claims align with recent data
on retail sales, factory production and
business activity that have suggested the
economy regained speed at the start of
the second quarter.
The labour market has been resilient,
despite 500 basis points worth of interest
rate increases from the Federal Reserve
since March 2022, when the US cen-
tral bank embarked on its fastest mon-
etary policy tightening campaign since
16 TheEdge CEO morning brief
w o r l d
estimate, last month, was for stagnation.
“The reluctance of households to buy
was apparent in a variety of areas,” the of-
fice said in a statement. “Households spent
less on food and beverages, clothing and
footwear, and on furnishings.” They also
purchased fewer electric cars as incentives
were reduced.
Elsewhere, there was a plunge in gov-
ernment expenditure, while investment was
up — aided by construction in unseason-
ably warm weather.
The result is a setback for Germany,
which despite escaping the bleakest sce-
narios feared in the aftermath of Russia’s
invasion has nevertheless succumbed to
a recession that Chancellor Olaf Scholz
appeared to rule out in January.
In Germany, companies like Zalando
SE reflect the flagging consumer senti-
ment. The fashion retailer saw invento-
ry levels driven higher in the first quarter
by falling demand. Domestic car orders,
meanwhile, were down by about a third
between January and April, according to
the VDA auto industry association.
The key manufacturing sector is also
proving to be a problem: A deepening
downturn is casting doubt on the rebound
many anticipate for the coming quarters.
Read the full story
US weekly jobless
claims rise
moderately; first-
quarter GDP
growth revised up
Reuters
the 1980s to tame inflation.
There were 1.6 job openings for every
unemployed person in March, well above
the 1.0-1.2 range that is consistent with
a jobs market that is not generating too
much inflation.
Employers have been hoarding workers
after experiencing difficulties finding labour
in the wake of the Covid-19 pandemic.
Economists expected layoffs to increase
as the effects of the punitive rate hikes
spread through the economy and tight-
ening financial conditions make it harder
for small businesses to access credit. Most
expect a mild recession by the second half
of the year.
EU extends tariff
suspension for
imports from
Ukraine
Reuters
BRUSSELS (May 25): The European
Union agreed on Thursday (May 25)
to suspend restrictions on imports from
Ukraine for a further year after warding
off an import ban on grain imposed by
some EU nations.
The Council of the EU, the grouping
of EU governments, said in a tweet that
EU ministers responsible for trade had
agreed to the extension at a meeting on
Thursday. The European Union lifted
tariffs and other restrictions for an in-
itial 12 months in June 2022.
The suspension of all duties has led
to complaints from farming groups,
culminating in Poland and Hungary
banning some Ukraine grain imports
in April. The countries became transit
routes for Ukrainian grain that could
not be exported through its Black Sea
ports.
Even before Russia’s invasion in Feb-
ruary last year, Ukraine had been ben-
efiting from the elimination of the vast
majority of EU tariffs, in some cases
with transition periods, under the EU-
Ukraine free trade agreement applied
since 2016.
However, up until 2022, the EU had
retained minimum prices for fruit and
vegetables and tariffs and quotas on
other sensitive farm products, such as
meat, dairy, sugar and some cereals.
Five neighbouring countries —
Hungary, Poland, Bulgaria, Roma-
nia and Slovakia — will bar domestic
sales of certain grains from Ukraine,
while allowing their transit for export
elsewhere.
The European Parliament has al-
ready backed the tariff suspension
proposal.
reuters
 f r i d ay m ay 2 6 , 2 0 2 3
Thai election
commission
confirms
opposition win in
May 14 vote
by Patpicha Tanakasempipat
Bloomberg
(May 25): Thailand’s pro-democracy par-
ties won a majority of the seats in the May
14 general election, according to official re-
sults published by the nation’s poll agency
on Thursday.
The progressive Move Forward Par-
ty won 151 seats to emerge as the sin-
gle-largest party in the 500-member House
of Representatives, followed by Pheu Thai
at 141 seats, the Election Commission said
in a statement. The official results confirm
the preliminary tally released on the night
of the election.
Bhumjaithai, which has championed the
liberalisation of cannabis, came third with
71 seats, while Prime Minister Prayuth
Chan-Ocha’s United Thai Nation bagged
36 seats. Military-aligned Palang Pracha-
rath secured 40 seats and the nation’s old-
(May 25): Russian Deputy Prime Minister
Alexander Novak said on Thursday that
he expects no new steps from the Opec+
group of oil producers at its meeting in Vi-
enna on June 4, Russian media reported,
after the group announced a significant
output cut earlier this year.
Novak also said that high US interest
rates and a slower than expected Chinese
economic recovery were holding back oil
prices from rising further.
Saudi Arabia and other Opec+ oil pro-
ducers announced cuts of more than one
million barrels per day in April, after crude
prices in March fell towards US$70 a bar-
rel, the lowest in 15 months.
Novak said he expects Brent price to
be above US$80 a barrel by the end of the
year, the state-owned news agency RIA re-
ported. He said current prices of US$75-
US$76 reflected the market’s assessment
of the global macroeconomic situation.
Opec+ will hold an in-person meeting
in Vienna this year.
“This will be the first face-to-face meet-
ing in six months; we are waiting, as usual,
for an assessment of the situation in the
market,” Novak was quoted as saying by
Izvestia newspaper.
17 TheEdge CEO morning brief
w o r l d
Move Forward leader Pita
Limjaroenrat is still short of the
support of 376 lawmakers needed to
become prime minister.
The progressive Move
Forward Party won 151 seats
to emerge as the single-largest
party in the 500-member
House of Representatives.
est political party Democrat won 25 seats.
The commission has until July 13 to
certify the official results that can pave the
way for the first meeting of the house and
selection of prime minister.
Russia’s Novak
does not expect
new steps from
Opec+ meeting
by Ksenia Orlova & Vladimir Soldatkin
Reuters
reuters
“But I don’t think that there will be any
new steps because just a month ago, certain
decisions were made regarding the voluntary
reduction of oil production by some coun-
bloomberg
A coalition of pro-democracy parties led by
the Move Forward has staked claim to form the
next government with Pita Limjaroenrat as its
prime ministerial nominee.The bloc is backed
by 312 lawmakers from the lower house and
about 19 senators from the upper house.
Pita is still short of the support of 376
lawmakers needed to become prime min-
ister in a joint voting of the the lower and
upper house that’s stacked with allies of
the military establishment.
The election saw a record turnout of
75.7% from the more than 52 million el-
igible voters, commission data showed.
tries due to the fact that we saw the slow
pace of global economic recovery,” he added.
He also said that he hopes that oil de-
mand will increase in the summer.
“But I repeat once again: we do not have
the task of inflating prices — there is the
task of balancing in order to ensure the in-
terests of both producers and consumers.”
Sending another signal that no action
might be required from Opec+ at its next
meeting, Russian President Vladimir Putin
said on Wednesday that energy prices were
approaching “economically justified” levels.
Putin said this month that production
cuts implemented by Opec+ were required
to maintain a certain price level, contra-
dicting assurances from other leaders of
the group that it was not seeking to man-
age the market in that way.
Oil prices were little changed on
Thursday, as uncertainty over wheth-
er the United States will avoid a debt
default weighed against the prospect of
further Opec+ production cuts.
Prices were supported by tightening
of US crude and fuel supplies, and by a
warning from the Saudi energy minister
to speculators which raised the prospect
of further cuts by Opec+.
 f r i d ay m ay 2 6 , 2 0 2 3
Singapore’s 1Q
GDP contraction
raises recession
risk; China
revival key
by Xinghui Kok
Reuters
SINGAPORE (May 25): Singapore’s
economy contracted in the first quarter,
raising the risk of a recession in the city-
state as the global economic outlook weak-
ens and major trading partner China strug-
gles for a post-Covid lift-off.
Singapore, a major financial hub, is re-
liant on trade flow to keep its economy
humming, though external demand has
faltered in the wake of rising borrowing
costs and still-strong inflationary pressures.
Gross domestic product rose 0.4% on
a year-on-year basis in the first quarter of
2023, official data showed on Thursday,
beating the advanced estimate of 0.1% re-
leased last month.
Yet, on a quarter-on-quarter, seasonally
adjusted basis, the economy shrank 0.4%, a
reversal from the 0.1% growth in the fourth
quarter of 2022 — leaving the affluent city-
state at risk of a technical recession in the event
of another contraction in the current quarter.
Maybank economist Chua Hak Bin said
a technical recession, defined as two con-
(May 25): Philippine President Ferdinand
Marcos Jr is pushing for the immediate en-
actment of a bill in the Senate that will set
up a sovereign wealth fund that proponents
say will shield the country from slowing eco-
nomic growth and rising borrowing costs.
“There arises an urgent need for a sus-
tainable national investment fund,” Marcos
said in a statement on Wednesday (May 24).
“This fund will serve as a new growth cata-
lyst, accelerating the execution of strategic
and impactful large-scale infrastructure pro-
jects that will stimulate economic activity and
foster development,” he said in the statement
issued by his communications office.
The House of Representatives last Decem-
ber approved the Bill creating the controversial
Maharlika Investment Fund, just over two
weeks after the measure, which aims to tap and
securitise dividends from state-owned compa-
nies, was filed. Once the Senate passes the Bill,
it will reconcile the measure with the House
version before it can be signed by Marcos.
Finance Secretary Benjamin Diokno
18 TheEdge CEO morning brief
w o r l d
secutive quarters of contractions, is pos-
sible if the boost from China’s reopening
fails to materialise in the second quarter.
“The return of China tourists is more a
trickle than a flood so far,” he said.
The trade ministry, however, said it
does not expect a technical recession this
year but acknowledged that the external
demand outlook for the rest of the year
had weakened.
Yong Yik Wei, chief economist at the
trade ministry, said the government ex-
pects low quarterly growth in the first half
of this year and a pick up in momentum
thereafter.
“But obviously, you know, given the
downside risks and the weakening out-
look, we cannot rule out the possibility
that there could be some quarters of neg-
ative q-on-q growth this year.”
Separately, the central bank said its
current monetary policy was appropriate
but it is keeping a watching brief on both
growth and inflation trends.
The Monetary Authority of Singapore
left monetary policy levers unchanged
last month, after tightening five times in
a row from October 2021, including in
two off-cycle moves last year in January
and July.
The trade ministry is maintaining its
GDP growth forecast at 0.5% to 2.5%
this year, with growth likely to come in at
around the mid-point of that range.
Maybank’s Chua said he was surprised
to see the growth forecast maintained.
“We are less optimistic and see the
economy stagnating rather than rebound-
ing in the coming quarters.”
Marcos seeks
speedy approval
of Philippine
Wealth Fund Bill
by Ditas Lopez
Bloomberg
said this is the “best possible time” to es-
tablish the sovereign wealth fund, citing the
state agencies’ sufficient investible funds
and the opportunity to make use of “ro-
bust” financial instruments to sustain the
country’s economic growth momentum.
“This is an opportune time to take ad-
vantage of the ample liquidity of our gov-
ernment financial institutions, which have
investible funds,” Diokno said in a mo-
bile-phone message to reporters.
Vietnam’s
VinFast recalls
first batch of
US-bound EVs
over security risk
Reuters
HANOI (May 25): Vietnamese electric
vehicle (EV) maker VinFast is recalling
all of the first batch of vehicles it shipped
to the US following a security warning is-
sued by the US National Highway Traffic
Safety Administration (NHTSA).
In a statement, the NHTSA said 999
VF8 vehicles suffered a software error in
the dashboard display which prevented
critical safety information from being
shown.
It said that “may increase the risk of
a crash”.
The recall statement comes less than
two weeks after VinFast announced it
would list in the US via a merger with
special purpose acquisition company
(SPAC) Black Spade Acquisition Co,
with the new entity having an equity val-
ue of US$23 billion (RM106.2 billion).
In February, VinFast recalled 2,781
VF8 cars sold in the domestic market to
check and replace the bolt connecting
the front brake caliper to the knuckle.
VinFast, which was founded in 2017
and began selling EVs in California this
year, has shipped two batches of VF8 cars
to the US totalling 2,097 units.
It also plans to send its first vehicles
to Europe in July.
VinFast confirmed the latest issue and
said it “would recall VF 8 (City Edition)
units due to MHU display issue,” refer-
ring to the media head unit.
In documents filed with the NHTSA,
VinFast said it first became aware of the
issue on April 27 while reading customer
comments and concerns.
According to the safety agency, the
problem has been documented 18 times.
The NHTSA said VinFast will intro-
duce a software update that should fix
the issue. It is scheduled to go live on
May 25 with notification letters being
sent out to owners by May 29.
Last month, VinFast said it had re-
ceived a fresh round of funding pledg-
es worth US$2.5 billion from parent
Vingroup JSC, Vietnam’s biggest con-
glomerate, and founder Pham Nhat
Vuong, Vietnam’s first billionaire and
richest man.
 f r i d ay m ay 2 6 , 2 0 2 3
SYDNEY (May 25): Pricewaterhouse-
Coopers (PwC) has agreed to remove
staff with links to the leak and use of
confidential Australian tax plans from
government work, a senior government
official told an inquiry on Thursday
(May 25).
The accounting firm is embroiled in
a national scandal over its use of confi-
dential information about proposed tax
laws to drum up business. The Australian
Treasury referred the matter to police for
a criminal investigation on Wednesday.
Finance Department Secretary Jen-
ny Wilkinson told a Senate committee
that PwC had agreed to remove staff
“directly involved and with knowledge”
of the breach from current and future
contracts until it wraps up an internal
review in September.
A PwC spokesperson declined to
comment.
The firm has earlier said it was “com-
mitted to learning from our mistakes”
Reuters
Nvidia close to
becoming first
trillion-dollar
chip firm after
stellar forecast
by Aditya Soni
Reuters
BENGALURU (May 25): For Nvidia
Corp, the boom in generative artificial in-
telligence (AI) is everything, everywhere,
all at once.
The chip designer’s shares extended
their rally this year on Thursday, soaring
25% after a stellar forecast showed that
Wall Street has yet to price in the AI po-
tential of the company that has already
doubled in value in 2023.
Nvidia, whose stock hit an all-time high
in premarket trading, was set to swell its
market valuation by about US$189 billion
to US$945 billion.
19 TheEdge CEO morning brief
w o r l d
PwC to remove
staff involved
in Australia
tax leak scandal
from govt work
by Lewis Jackson & Renju Jose
Reuters
Reuters
The rosy earnings also sparked a rally in the
chip sector and AI-focused firms, lifting stock
markets from Japan to Europe. In the US,
companies including Alphabet Inc, Microsoft
Corp and AMD rose between 2% and 8%.
Analysts rushed to raise their price targets
on Nvidia stock, with 21 lifting their view
on the idea that all roads in AI lead to the
company as it provides the chips used to
power ChatGPT and many similar services.
“In the 15+ years we have been doing this
job, we have never seen a guide like the one
Nvidia just put up with the second-quarter
outlook that was by all accounts cosmolog-
ical, and which annihilated expectations,”
said Stacy Rasgon of Bernstein.
Nvidia, the fifth-most valuable US com-
pany, on Wednesday projected quarterly
revenue more than 50% above Wall Street
estimates and said it would have more sup-
ply of AI chips in the second half to meet
a surge in demand.
CEO Jensen Huang said a US$1 tril-
lion worth of current equipment in data
centres would have to be replaced with
AI chips, as generative AI is applied into
every product and service.
The results bode well for Big Tech com-
panies, which have shifted focus to AI in
hopes the technology would help attract
demand at a time their profit engines of
digital advertising and cloud computing
are under pressure from a weak economy.
“This Nvidia (forecast) changes the
whole narrative around AI and demand
looking ahead in the enterprise. Historical
inflection point possibly in the AI Revolu-
tion, with Nvidia the key barometer,” said
Dan Ives of Wedbush.
and it would continue to cooperate fully
with any investigations into the matter.
Wilkinson said she considered “PwC’s
abuse of confidence and trust with the
Treasury and PwC’s subsequent han-
dling of this breach to be a very serious
issue”.
She also proposed adjusting future
contracts to give the government more
power to scrap contracts, amid mounting
calls for the cancellation of PwC Aus-
tralia’s existing government contracts
and a ban on more work in the wake of
the scandal.
Home Affairs Minister Clare O’Neil
said earlier in the day the government
cannot cancel existing contracts with the
auditor due to legal constraints.
The Australian federal government
has committed to contracts wor th
A$255.2 million (RM799.3 million)
with PwC in this financial year as of
May 16, a finance committee official told
the Senate committee.
Alibaba hiring 15,000
people, pushes back
on job cut reports
by Aditya Soni
Reuters
(May 25): Alibaba Group Holding Ltd
said it plans to hire 15,000 people this
year, pushing back on reports that the
Chinese tech firm is laying off employees.
In a statement released on Weibo
on Thursday, the Chinese e-commerce
platform said its “six major business
divisions will need to hire 15,000 new
recruits in total.” The company said it
would recruit 3,000 university gradu-
ates. It characterized reports of layoffs
as “rumours” and said employee de-
partures are part of the “normal flow.”
Alibaba pointed to its recruiting sys-
tem as evidence that the company is still
hiring. “We have never stopped recruit-
ing and cultivating outstanding talents,”
the company said in its statement.
 f r i d ay m ay 2 6 , 2 0 2 3
Solar power
investment
set to surpass
oil production
spending this year
by William Mathis
Bloomberg
(May 25): Investors will pour more money
into solar power than in oil production this
year for the first time, signalling the scale
and speed of the transition to low-carbon
sources of energy.
That’s according to the latest report
from the International Energy Agency,
which sees investments in clean energy
technologies soaring past those made in
fossil fuels. However, the mix of invest-
ment is still far from one that would put
LONDON (May 25): Most British house-
holds, many feeling a cost-of-living squeeze,
can expect cheaper energy bills from July
after regulator Ofgem slashed its price cap
to reflect a slump in wholesale costs.
Britain has the joint-highest rate of in-
flation among the Group of Seven nations
along with Italy and official data this week
showed consumer prices rose 8.7% in an-
nual terms in April, slowing from March,
but still at elevated levels.
Despite Ofgem’s price cap cut, National
Energy Action said some 6.6 million British
households would remain in fuel poverty,
a measure of how much income is spent
on energy.
Ofgem’s new cap of £2,074 (RM12,099)
a year for average use of electricity and gas,
known as dual-fuel, marks a near 40% fall
compared with the previous level.
However, the price drop for most British
households will be around 17% as since
20 TheEdge CEO morning brief
w o r l d
bloomberg
the world on course to meet its commit-
ments to limit the increase of global tem-
peratures.
A record of more than US$1.7 trillion
(RM7.8 trillion) will be invested in a vari-
ety of clean energy technologies this year
compared to about US$1 trillion going
into fossil fuel supplies and power pro-
duction, the IEA found. Clean energy
spending is set to grow 24% this year, a
more rapid pace than the 15% growth in
investment for fossil fuels.
“Clean technologies are pulling away
from fossil fuels,” said Fatih Birol, the
IEA’s executive director.
The growth in clean energy spending
is driven by technologies including solar
panels and electric vehicles that are key
to cutting dependence on the use of oil,
coal and natural gas that are major causes
of carbon emissions and lead to climate
change. Still, that level of annual invest-
ment will need to roughly double by 2030
to put the world on track to have a chance
to limit global warming to 1.5C, accord-
ing to the report.
Energy bills for
most Britons
to fall as price
cap cut
by Susanna Twidale
Reuters
October a government guarantee has kept
the average annual cost of energy at £2,500
a year. Some 29 million customers are on
standard rate tariffs protected by the price
cap, Ofgem said in a statement on Thurs-
day (May 25).
Read the full story
Food from air
and electricity
makes global
debut in
Singapore
by Low De Wei
Bloomberg
(May 25): It doesn’t look particularly ap-
petizing — a mustard yellow-hued powder
with the texture of starch — but the ingre-
dient that made its global debut in Singa-
pore on Thursday is being touted as the
latest breakthrough in food technology.
Produced from air, water, electricity
and microbes by Finnish startup So-
lar Foods, the substance can be used
to make anything from bread to pasta.
It had its first official tasting after the
city-state approved the sale of products
containing the ingredient last October.
The powder itself resembles turmeric
and tastes like a light, nutty mix of cash-
ews and almonds. It’s 65% to 70% pro-
tein, 5% to 8% fat and has a composition
similar to that of dried soy or algae.
Solein, as it’s called, builds on a
growing microbial fermentation trend.
It’s made in a similar way as brewing
beer. Instead of sugar, microbes feed on
nitrogen and carbon dioxide, and begin
to grow. Excess water is removed and
then it’s dried, forming a powder.
The technology’s gaining atten-
tion, even as investors stay cool on the
broader alternative protein sector, given
it has the potential to produce edible
calories without farmland. Crop giant
Archer-Daniels-Midland Co is lending
its heft, announcing a strategic partner-
ship this month with California com-
pany Air Protein to build and operate
a commercial-scale plant.
It will take “a couple of decades” for
food-from-air production volumes to
have a real impact on the world, So-
lar Foods Chief Executive Officer Pasi
Vainikka said in an interview.
Solar Foods was a project spun out of
a Finnish state-owned research institute
in 2017. The company has raised about
€105 million (US$113 million) in fund-
ing from firms including Agronomics
Ltd and CPT Capital. It wants to raise
more cash for a larger-scale commercial
factory over the next three years.
Read the full story
 f r i d ay m ay 2 6 , 2 0 2 3
Japan raises
growth view in
May as spending,
production rise
by Yoshiaki Nohara
Bloomberg
(May 25): Japan’s government raised its
monthly economic assessment in May for
the first time in 10 months as consump-
tion, production and exports improved.
The Cabinet Office said in its latest re-
port Thursday that the economy is recov-
ering at a moderate pace, saying the trend
is expected to continue with the jobs and
income situation improving. It also upgrad-
ed its assessment of consumer spending,
production and exports.
The office also cited a slowdown in
overseas economies as a downside risk for
the Japanese economy.The global economy
is already showing the impact from mone-
JAKARTA (May 25): Indonesia’s cen-
tral bank kept its policy interest rates un-
changed for a fourth straight meeting on
Thursday (May 25), as expected amid
cooling inflation, but its governor warned
a slowdown in investment may hit econom-
ic growth for the rest of 2023.
Bank Indonesia (BI) left unchanged its
benchmark seven-day reverse repurchase
rate at 5.75%, as unanimously predicted
by 31 economists surveyed by Reuters. Its
two other policy rates were also kept un-
changed.
With inflation in Southeast Asia’s largest
economy already easing to just above the
central bank’s target range, some analysts
said BI may soon begin to consider easing
monetary policy to support growth amid
slowing exports.
Asked about when BI would consider
a rate cut, Governor Perry Warjiyo said its
main concern was high global uncertain-
ties, especially related to US debt ceiling
negotiations and possible spending cuts
there.
“This is why the focus of our policy is
stabilising the rupiah to mitigate imported
inflation and any spillover impact,”Warjiyo
told a news conference.
However, BI appeared concerned
about domestic growth. While it kept its
2023 economic growth forecast within
a range of 4.5% to 5.3%, it no longer
mentioned that it was expecting a “bias
towards the upper end” — which it had
21 TheEdge CEO morning brief
w o r l d
tary policy tightening aimed at countering
inflation around the world.
Earlier this month, data showed the Jap-
anese economy expanded at a faster pace
than expected in the first three months of
the year. The improving economic condi-
tions will keep speculation alive that Prime
Minister Fumio Kishida may call an early
election.
Bank Indonesia
keeps rates
unchanged, flags
risk of growth
softening
by Gayatri Suroyo & Fransiska Nangoy
Reuters
mentioned in its April statement.
Warjiyo said first-quarter GDP data
showed a slowdown in growth of con-
struction and real estate investment and
he cited a trend of investment typically
slowing ahead of elections. Indonesians
are due to hold general elections in 2024.
Overall economic growth picked up
slightly to 5.03% in the first quarter, thanks
to consumer and government spending off-
setting a slowdown in exports and invest-
ment, data showed earlier this month.
Meanwhile, Indonesia’s annual infla-
tion cooled to 4.33% in April, down from
last year’s peak of 5.95%, after BI raised
interest rates a total of 225 basis points
between August and January.
Read the full story
Russia summons
Germany, Sweden,
Denmark envoys
over ‘stalled’
Nord Stream
investigation
Reuters
MOSCOW (May 25): Russia’s For-
eign Ministry said on Thursday that
it had summoned the ambassadors
of Germany, Sweden and Denmark
to protest over what it said was the
“complete lack of results” in an in-
vestigation to identify who blew up
the Nord Stream gas pipelines last
year.
Several unexplained underwa-
ter explosions ruptured the Nord
Stream 1 and newly-built Nord
Stream 2 pipelines that link Russia
and Germany across the Baltic Sea,
in September 2022.
The blasts occurred in the eco-
nomic zones of Sweden and Den-
mark and both countries say the ex-
plosions were deliberate, but have
yet to determine who was responsi-
ble.The two countries and Germany
are investigating the incident.
Russia’s Foreign Ministry in a
statement accused all three of de-
liberately dragging their feet and of
trying to conceal who was behind
the blasts.
The ministry said it was unhap-
py about what it called the opaque
nature of the investigation and its
refusal to engage with Russia.
“It has been noted that these
countries are not interested in es-
tablishing the true circumstances of
this sabotage. On the contrary, they
are delaying their efforts and trying
to conceal the tracks and the true
perpetrators of the crime behind
which we believe are well-known
countries,” it said.
“It is no coincidence that ‘leaked’
improbable versions (of what hap-
pened) are dumped in the media to
try to muddy the waters,” it added.
The United States and the North
Atlantic Treaty Organization (Nato)
have called the incident “an act of
sabotage”. Moscow has blamed the
West. Neither side has provided ev-
idence.
 f r i d ay m ay 2 6 , 2 0 2 3
Chanel makes bigger UK bet with
London office expansion plan
(May 25): Chanel is more than doubling
its London headquarters, boosting a shaky
UK economy and signaling confidence in
the luxury industry’s prospects as rivals’
shares have wobbled.
The fashion company plans to expand
its office space at a new property in the
British capital’s exclusive Berkeley Square
in Mayfair. The move by a brand histori-
cally associated with France comes amid
growing concern about the UK’s loss of
competitiveness post-Brexit, with sever-
al companies moving stock listings to the
US or shifting manufacturing elsewhere.
The closely held fashion house report-
ed a comparable sales increase of 17% for
2022, led by Europe. That was in line with
Louis Vuitton owner LVMH but trailed
the performance of Hermes Internation-
al. Chanel’s profit growth lagged behind
both competitors.
“We’ve maintained a really good mo-
mentum in 2023, more or less at a similar
level” as last year, Chief Financial Officer
Philippe Blondiaux said in an interview
Thursday.
China’s reopening has boosted travel,
giving Chanel a “lot of confidence” for
this year, he said. Chanel is seeing dou-
ble-digit revenue growth in the country,
and sales generated from Chinese shoppers
in France are starting to recover. Although
demand in the US has softened since No-
vember, sales there are still growing by a
single-digit percentage, Blondiaux said.
Investors have dumped shares in some
of Chanel’s publicly traded rivals over re-
22 TheEdge CEO morning brief
w o r l d
by Angelina Rascouet & Tara Patel
Bloomberg
We’ve maintained a
really good momentum
in 2023, more or
less at a similar
level” as last year.
cent days on concerns about a possible
slowdown for the red-hot industry.
New building
The brand behind Chanel No 5 perfume
plans to move its teams to the new Lon-
don building, designed by Piercy & Co, by
the end of 2025. Earlier this week, Chanel
signed a tenancy agreement for the new
building for the next 20 years with a pos-
sibility to extend it by another decade.
Chanel moved its global headquarters
from New York to London in 2018. The
new lease covers 86,000 square feet (8,000
square meters) across 11 floors. Chanel’s
headcount grew 12% last year to 32,000
employees, with plans to increase by an-
other 16% this year.
Although incorporated in the UK, Chanel
has ties to Paris that date to its beginnings in
the early 20th century, when Gabrielle “Coco”
Chanel opened a boutique selling hats.
Chanel’s expansion in the UK comes
at a difficult time for luxury brands there
after the government decided to scrap VAT-
free shopping for tourists, a measure that’s
hurting business by giving international
travelers less incentive to come to London.
Burberry Group Plc Chief Executive Of-
ficer Jonathan Akeroyd last week reiterated
his disappointment at the change because it
puts the UK at a “competitive disadvantage”
relative to continental Europe.
The billionaire Wertheimer brothers —
Alain, 74, and Gerard, 71 — who own
Chanel have so far pocketed a much small-
er windfall for 2022 than the total for the
previous year. The latest report shows an
interim dividend of US$1.68 billion. That
compares with US$5 billion in payouts
for all of 2021.
The siblings’ net worth was nearly
US$92 billion before the latest results,
according to the Bloomberg Billionaires
Index.
CEO Leena Nair said Chanel has no
plans to list on the stock market. “We’re a
private, independent company and plan to
stay so,” she said Thursday in an interview.
Read also:
Chanel’s US$10,000 handbags may
become even pricier in September
Richard Branson’s space-tourism dreams
face a crucial test flight
 F R I D AY M AY 2 6 , 2 0 2 3
M A R K E T S
CPO RM 3,493.0086.00 OIL US$ 76.93-1.43 RM/USD 4.6265 RM/SGD 3.4216 RM/AUD 3.0200 RM/GBP 5.7265 RM/EUR 4.9650
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
VELESTO ENERGY BHD 100.40 -0.030 0.225 50.00 1,848.5
BAHVEST RESOURCES BHD 81.00 -0.005 0.185 -39.34 229.4
PARKSON HOLDINGS BHD 68.70 0.010 0.160 18.52 183.8
WIDAD GROUP BHD 44.20 0.005 0.430 0.00 1,244.1
MSM MALAYSIA HOLDINGS BHD 44.20 0.220 1.050 23.53 738.1
ICONIC WORLDWIDE BHD 42.20 -0.005 0.140 7.69 78.7
KNM GROUP BHD 38.70 0.005 0.065 30.00 241.4
DAGANG NEXCHANGE BHD 36.20 -0.015 0.405 -20.59 1,278.3
TANCO HOLDINGS BHD 28.20 -0.010 0.540 61.19 1,017.9
TA WIN HOLDINGS BHD 26.90 0.000 0.040 -27.27 137.4
HARTALEGA HOLDINGS BHD 25.30 -0.210 2.340 37.65 7,996.9
TOP GLOVE CORP BHD 22.70 -0.060 1.130 24.86 9,049.0
MY EG SERVICES BHD 22.70 0.000 0.765 -11.22 5,665.2
IRIS CORP BHD 22.20 0.010 0.115 -11.54 375.2
VINVEST CAPITAL HOLDINGS BHD 21.30 -0.005 0.070 -63.16 67.8
SILVER RIDGE HOLDINGS BHD 19.90 0.010 0.470 248.15 95.6
REVENUE GROUP BHD 19.70 -0.020 0.265 -60.74 141.7
META BRIGHT GROUP BHD 18.20 -0.005 0.175 2.94 409.0
SEDANIA INNOVATOR BHD 17.90 0.025 0.230 -13.21 79.9
HEXTAR INDUSTRIES BHD 17.70 0.015 0.500 -35.06 1,373.7
Data as compiled on May 25, 2023 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
PEGASUS HEIGHTS BHD 0.010 100.00 433.7 0.00 108.2
MMAG HOLDINGS BHD 0.015 50.00 2,367.1 -40.00 36.3
DGB ASIA BHD 0.015 50.00 179.5 0.00 28.2
METRONIC GLOBAL BHD 0.015 50.00 2,209.3 -25.00 23.0
SANICHI TECHNOLOGY BHD 0.020 33.33 112.0 -20.00 28.1
MSM MALAYSIA HOLDINGS BHD 1.050 26.51 44,201.1 23.53 738.1
LOTUS KFM BHD 0.125 19.05 1,248.4 -13.79 127.4
MQ TECHNOLOGY BHD 0.035 16.67 1,346.0 -30.00 48.3
KANGER INTERNATIONAL BHD 0.035 16.67 6,357.4 -12.50 22.7
BINA PURI HOLDINGS BHD 0.040 14.29 2,278.1 0.00 134.8
DESTINI BHD 0.085 13.33 17,579.3 6.25 141.4
KAMDAR GROUP M BHD 0.180 12.50 43.0 9.09 35.6
BSL CORP BHD 0.045 12.50 940.2 -33.43 86.9
SEDANIA INNOVATOR BHD 0.230 12.20 17,850.3 -13.21 79.9
SAM ENGINEERING & EQUIPMENT 4.400 10.28 563.5 -10.75 2383.0
JOHAN HOLDINGS BHD 0.055 10.00 298.8 0.00 64.2
IRIS CORP BHD 0.115 9.52 22,205.7 -11.54 375.2
MALAYAN FLOUR MILLS BHD 0.710 8.40 5,358.8 -6.58 725.1
MENANG CORP M BHD 0.970 8.38 975.3 104.21 494.2
KNM GROUP BHD 0.065 8.33 38,653.9 30.00 241.4
Data as compiled on May 25, 2023 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
MALAYSIAN PACIFIC INDUSTRIES 25.720 0.420 116.2 -10.57 5,115.6
SAM ENGINEERING & EQUIPMENT 4.400 0.410 563.5 -10.75 2,383.0
RAPID SYNERGY BHD 20.400 0.280 37.8 27.82 2,180.7
HEINEKEN MALAYSIA BHD 26.740 0.220 109.0 6.11 8,078.1
MSM MALAYSIA HOLDINGS BHD 1.050 0.220 44,201.1 23.53 738.1
AEON CREDIT SERVICE M BHD 11.680 0.160 8.2 -7.15 2,982.0
PIE INDUSTRIAL BHD 3.350 0.090 144.0 28.85 1,286.5
AMWAY MALAYSIA HOLDINGS BHD 5.400 0.080 20.0 11.55 887.7
HEXTARTECHNOLOGIES SOLUTIONS 24.940 0.080 36.7 46.19 3,208.5
MBM RESOURCES BHD 3.490 0.080 452.4 10.73 1,364.2
MENANG CORP M BHD 0.970 0.075 975.3 104.21 494.2
CI HOLDINGS BHD 3.350 0.070 0.1 14.33 542.7
TROPICANA CORP BHD 1.350 0.070 405.2 5.47 2,862.9
UWC BHD 2.780 0.070 2,293.7 -30.85 3,062.6
MASTER-PACK GROUP BHD 2.500 0.070 8.4 6.38 136.6
UNISEM M BHD 2.860 0.060 201.5 3.62 4,613.4
CARLSBERG BREWERY MALAYSIA 21.320 0.060 77.4 -6.82 6,518.5
TENAGA NASIONAL BHD 9.580 0.060 3,100.5 -0.52 55,114.5
ALLIANZ MALAYSIA BHD 14.060 0.060 15.1 -0.71 2,502.2
HONG LEONG BANK BHD 19.540 0.060 761.5 -4.96 42,357.2
Data as compiled on May 25, 2023 Source: Bloomberg
23 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 32,799.92 -255.59 -0.77 INDONESIA 6,704.23 -41.57 -0.62
S&P 500 4,115.24 -30.34 -0.73 JAPAN 30,801.13 118.45 0.39
NASDAQ 100 13,604.48 -68.06 -0.50 KOREA 2,554.69 -12.76 -0.50
FTSE 100 7,613.52 -13.58 -0.18 PHILIPPINES 6,560.22 -55.73 -0.84
AUSTRALIA 7,138.16 -75.64 -1.05 SINGAPORE 3,207.72 -6.49 -0.20
CHINA 3,201.26 -3.49 -0.11 TAIWAN 16,292.00 132.68 0.82
HONG KONG 18,746.92 -369.01 -1.93 THAILAND 1,535.42 -1.09 -0.07
INDIA 61,872.62 98.84 0.16 VIETNAM 1,064.63 2.84 0.27
Data as compiled on May 25, 2023 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
ASIA POLY HOLDINGS BHD 0.065 -18.75 17,059.0 -40.91 62.3
BARAKAH OFFSHORE PETROLEUM 0.045 -10.00 286.4 80.00 45.1
CME GROUP BHD 0.030 -14.29 6.0 0.00 31.0
EDUSPEC HOLDINGS BHD 0.025 -16.67 110.0 -75.00 26.7
EP MANUFACTURING BHD 0.470 -7.84 913.2 -52.76 103.5
FINTEC GLOBAL BHD 0.005 -50.00 120.0 -50.00 29.6
HARTALEGA HOLDINGS BHD 2.340 -8.24 25,291.3 37.65 7,996.9
INDUSTRONICS BHD 0.045 -10.00 5,573.1 -40.00 31.8
KEY ASIC BHD 0.055 -8.33 96.0 -15.38 76.6
MINETECH RESOURCES BHD 0.040 -11.11 1,246.0 -27.27 61.1
MTOUCHE TECHNOLOGY BHD 0.040 -11.11 18.4 -20.00 37.1
NEXGRAM HOLDINGS BHD 0.030 -14.29 1.0 -57.14 13.3
NTPM HOLDINGS BHD 0.425 -7.61 2,044.6 -8.60 477.3
PDZ HOLDINGS BHD 0.025 -16.67 96.1 -37.50 14.5
PJBUMI BHD 0.615 -8.21 2,416.2 -31.67 50.4
REACH ENERGY BHD 0.040 -11.11 1,772.1 -11.11 85.2
SC ESTATE BUILDER BHD 0.040 -11.11 100.0 -11.11 43.0
SEREMBAN ENGINEERING BHD 0.825 -11.29 0.5 -26.34 65.7
SINMAH CAPITAL BHD 0.110 -8.33 469.2 0.00 43.2
VELESTO ENERGY BHD 0.225 -11.76 100,373.3 50.00 1,848.5
Data as compiled on May 25, 2023 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
KUALA LUMPUR KEPONG BHD 21.780 -0.760 1,096.8 -2.59 23,488.3
PETRONAS DAGANGAN BHD 22.000 -0.340 177.0 -3.71 21,856.0
KESM INDUSTRIES BHD 6.810 -0.250 6.4 -2.99 292.9
FRASER & NEAVE HOLDINGS BHD 25.980 -0.240 57.3 20.39 9,528.9
HARTALEGA HOLDINGS BHD 2.340 -0.210 25,291.3 37.65 7,996.9
APEX HEALTHCARE BHD 3.950 -0.210 432.5 12.22 1,890.8
PETRONAS GAS BHD 16.740 -0.200 657.3 -2.22 33,124.0
UNITED PLANTATIONS BHD 15.560 -0.200 286.9 3.66 6,454.1
BATU KAWAN BHD 21.500 -0.180 10.8 -3.59 8,457.7
YNH PROPERTY BHD 4.770 -0.140 93.1 12.77 2,520.9
SIME DARBY PLANTATION BHD 4.280 -0.130 3,670.3 -7.96 29,599.3
PANASONIC MANUFACTURING 22.000 -0.120 8.6 -3.93 1,336.4
GUAN CHONG BHD 2.510 -0.110 138.2 4.58 2,948.0
SEREMBAN ENGINEERING BHD 0.825 -0.105 0.5 -26.34 65.7
TELEKOM MALAYSIA BHD 5.000 -0.090 1,760.2 -7.41 19,109.9
SOUTHERN ACIDS MALAYSIA BHD 3.570 -0.080 5.0 -2.19 488.9
HARRISONS HOLDINGS MALAYSIA 9.770 -0.080 20.9 47.36 669.0
PPB GROUP BHD 16.000 -0.080 437.5 -8.26 22,761.6
HUME CEMENT INDUSTRIES BHD 1.270 -0.080 1,456.4 35.11 640.1
MISC BHD 7.230 -0.070 3,570.9 -3.60 32,272.9
Data as compiled on May 25, 2023 Source: Bloomberg