CHINA WILL RETALIATE IF US PUTS NEW LIMITS

ON INVESTMENT, ENVOY SAYS p16

F R I DAY, J U LY 2 1 , 2 0 2 3 t h e e d g e m a l ay s i a . c o m
ISSUE 606/2023

CEOMorningBriefHOME: CPO futures rise above RM4,000 amid Russia attack on Ukraine agro facilities p2
Gamuda buys land in Vietnam for US$315 mil p3
MST Golf is the fifth listing to close below IPO price this year p9
WORLD: Wheat soars as Ukraine and Russia threaten ships, roiling trade p17
TSMC cuts 2023 outlook ahead of delay to marquee US project p21

AirAsia X submits application to exit PN17,

confirms The Edge report
Report on Page 2.
THE EDGE FILE PHOTO

Ajinomoto seals
RM408 mil all-cash
land sale with TS Law
Report on Page 3.
 f r i d a y j u ly 2 1 , 2 0 2 3
the edge ceo morning brief
Read from desktop or mobile device.
You can print in A4 to read. Set print
mode to fit or shrink oversize page.
to get on emailing list
ceomorningbrief@bizedge.com
KUALA LUMPUR (July 20): AirAsia X Bhd
(AAX) is about to shed its Practice Note 17
status for financially distressed companies.The
low-cost carrier has submitted an application
to Bursa Malaysia to be uplifted from PN17 al-
together, on recent improvements in the group
and its subsidiaries’ financial performance.
Hence, it is also seeking a relief from hav-
ing to submit and implement a plan to reg-
ularise its condition, its Thursday (July 20)
bourse filing showed.
This confirmed The Edge weekly’s report
published for the week of July 17-July 23, quot-
ing sources, that AAX was planning to lift it-
self from the PN17 classification in a matter of
days, as it no longer triggered the PN17 criteria
under the Main Market listing requirement.
The carrier submitted the application to
Bursa on Thursday (July 20).
While awaiting for Bursa’ green light to lift
its PN17 status, AAX has also, via the same
application, sought for a further extension of
up to three months from July 29 to Oct 28,
to submit its regularisation plan in the event
it does not receive Bursa’s approval for the
proposed relief and upliftment.
KUALA LUMPUR (July 20): Crude palm
oil (CPO) futures on Bursa Malaysia Deriv-
atives look set to hit their highest level since
mid-March, amid a rally in crop prices in
the wake of Russia’s attack on Ukraine’s
agricultural facilities and its ending of the
Black Sea grain deal.
The benchmark October contract rose
to RM4,009 per tonne on Thursday (July
20), before closing higher to RM4,047, up
RM152 from Wednesday (July 19), accord-
ing to Bursa Malaysia Derivatives.
CPO last surpassed the RM4,000 mark
in March this year, with the highest close
of RM4,199.
In March, CPO futures rallied above
RM4,200 for the benchmark contract, the
highest level in four months, due to bad
weather conditions that affected production.
The current rally comes as wheat and corn
prices soared after Russia attacked Ukraine’s
agricultural facilities and threatened vessels
going to Ukrainian ports, Bloomberg reported,
noting Russia had earlier ended the Black Sea
grain deal that had kept Ukraine’s exports
flowing through the corridor.
CIMB Investment Bank Bhd analyst Ivy
Ng said the CPO upward momentum will
2 TheEdge CEO morning brief
h o m e
published by
(266980-X)
. 603-77218000
tel
Level 3, Menara KLK, 1 Jalan PJU 7/6,
Mutiara Damansara, 47810, Petaling Jaya,
Selangor, Malaysia
AirAsia X submits
application to exit
PN17, confirms
The Edge report
by Anis Hazim
theedgemalaysia.com
AAX was previously granted an extension
of time twice to submit its regularisation plan,
first for six months to April 28, and then for a
further three months till July 28 this year.
AAX slipped into PN17 status on Oct 27,
2021, while its sister company Capital A Bhd
did so on Jan 14, 2022, after accumulating
pandemic-led losses, which resulted in nega-
tive shareholders equity for both companies.
On Feb 21, AAX posted a net profit of
RM153.48 million for the sixth quarter of
the financial period ended Dec 31, 2022
(6QFP2022), a six-fold jump quarter-on-quar-
CPO futures rise
above RM4,000
amid Russia
attack on Ukraine
agro facilities
by Anis Hazim
theedgemalaysia.com
continue if there is no resolution to Russia’s
withdrawal from the grain deal.
“This is because this development will
negatively impact Ukraine’s ability to ex-
port sunflower oilseeds and oil, and this
in turn could help boost demand for palm
oil,” Ng told The Edge.
Besides the Russian-Ukraine crisis, she
said another factor that could boost CPO
prices in the next 12 months is the El Nino
weather phenomenon. The tropical oil has
surged 25% since the end of May on con-
cerns about El Nino’s impact on production.
publisher + . Ho Kay Tat
ceo
editor - in - chief
. Kathy Fong
chief commercial officer . Sharon Teh
chief operating officer . Lim Shiew Yuin
editors . Jenny Ng . Tan Choe Choe
Lam Jian Wyn
to contact editors : eeditor@bizedge.com
to advertise : advertising@bizedge.com
The Edge weekly’s report published for the
week of July 17-July 23
ter from RM25.09 million in 5QFP2022, on the
back of record average fare, higher load factor
and a sharp rise in passengers carried. Quarterly
revenue more than tripled to RM339.3 million,
from RM100.1 million in the quarter prior.
AAX shares closed one sen or 0.6% lower
to RM1.67 on Thursday, valuing the company
at RM746.61 million, while Capital A settled
one sen or 1.21% higher at 83.5 sen, giving
it a market capitalisation of RM3.46 billion.
Year to date, AAX has gained nearly 180%
from when it was trading at RM1.07, while
Capital A climbed over 28% from 18 sen.
CPO futures contract
year-to-date
RM/mt
5,000
4,047
4,000
4,140
3,000
July 20, 2022 July 20, 2023
Source: Bloomberg
Meanwhile, the bullish sentiment in the
broader agricultural complex also supports
palm oil, Bloomberg citing Philip Nova com-
modities strategist Darren Lim as saying.
“There are also overpowering bullish fac-
tors for the tropical oil,” said Lim. “There’s
still resistance at around RM4,000. If prices
hold substantially above that level, then gains
are likely to be sustained.”
 F R I D A Y J U LY 2 1 , 2 0 2 3
Ajinomoto seals
RM408 mil
all-cash land sale
with TS Law
BY PRIYATHARISINY VASU
theedgemalaysia.com
KUALA LUMPUR (July 20): Ajinomoto
(Malaysia) Bhd is selling six parcels of land
with redevelopment potential that are located
along Jalan Kuchai Lama here to businessman
Tan Sri David Law Tien Seng, better known
as TS Law, for RM408 million, cash.
On completion of its disposal, it plans to
distribute RM128.89 million in special divi-
dend at RM2.12 per share to shareholders at
an entitlement date to be determined later.
In a bourse filing Thursday (July 20),
Ajinomoto Malaysia said it has inked an
agreement for the disposal with Paragon
TSL Sdn Bhd, in which Law is a director
and major shareholder via his shareholding
in Paragon’s ultimate holding company —
TS Law Land Holdings Sdn Bhd. Law is
also a majority shareholder of Main Mar-
ket-listed steel company Hiap Teck Venture
Bhd, which is mainly involved in steel pipe
manufacturing, scaffolding equipment and
hardware trading.
The food producer famed for its umami
seasonings said it is selling the plots, which
currently host its corporate offices and fac-
tories for the production of its seasonings,
KUALA LUMPUR (July 20): Gamuda
Bhd’s property arm Gamuda Land has
entered into an agreement to acquire a 9.1-
acre site in Thu Duc City in Ho Chi Minh
City (HCMC),Vietnam, for approximately
US$315.8 million (RM1.47 billion).
In a filing to Bursa Malaysia on Thurs-
day (July 20), the company said this
mixed-use development site has a pro-
jected gross development value (GDV)
of US$1.1 billion.
The company plans to develop 1,968
exclusive apartments, 12 penthouses, 51
podium shops and 21 shophouse units
across six towers of up to 40 levels, all
fully developed and sold within five years.
“Gamuda Land was able to capitalise
on these two key factors in this opportun-
istic acquisition — to obtain a shovel-ready
development site in a prime location with
all requisite planning approvals in place
and rapidly sell in-demand products to a
market short on supply,” said Angus Liew,
chairman of Gamuda Land Vietnam op-
erations in a separate statement.
3 THEEDGE CEO MORNING BRIEF
H O M E
The approximate location of the land plots, from Ajinomoto Malaysia’s bourse filing.
as they can no longer accommodate further
capacity expansion.
The land sale will enable Ajinomoto
Malaysia to monetise the assets and im-
prove its financial position. Ajinomoto ex-
pects to realise a net pro forma gain of
RM357.12 million from the disposal. The
company will use RM83.39 million of the
proceeds for the repayment of bank bor-
rowing, and RM128 million for working
capital. It also intends to use RM30 mil-
lion to repay the advances from its ulti-
mate holding company, Ajinomoto Co Inc.
The disposal consideration was also arrived
at on a “willing-buyer willing-seller” basis,
which represented a 12.09% premium to the
market value of the land of RM364 million, as
appraised by an independent property valuer.
When contacted, a spokeperson of TS
Law Land told The Edge that the company
Gamuda buys
land in Vietnam
for US$315 mil
BY PRIYATHARISINY VASU
theedgemalaysia.com
The company said the target position-
ing for this development will be in the
“high-end” category with a pricing range
of US$4,000–US$7,000 per sq m, subject
to location and product quality.
New properties within this category
have recorded stable absorption rates of
over 75% across the past five years, accord-
ing to Savills, the company added.
“There is an acute lack of supply of prop-
erties within this price range in this prime lo-
cation, as most of the market supply has been
in the ‘upper high-end’ category, with prices
of less than US$7,000 per sq m,” said Liew.
is in the midst of crafting a masterplan for
the six parcels of lands.
“The area is long-overdue for something
fresh and exciting.We are hopeful that the de-
velopment will definitely transform and reju-
venate Kuchai Lama. We would like to bring
a new concept of work, live, play, and con-
venience with better integration with various
modes of transport for this area, especially giv-
en that there is a new MRT station near the site
which will provide great convenience,” he said.
He added that TS Law Land believes the
government would welcome such private
sector investments, and would provide the
right framework, incentives and policies to
encourage more of such investments.
Ajinomoto Malaysia shares gained 28 sen
or 1.78% to close at RM15.98 on Thursday,
valuing the company at RM971.56 million.
The stock has gone up 7% in the past month.
He added as such, their product will be
highly sought-after by high-income expatri-
ate families and the growing local middle and
high-income Vietnamese seeking value and
proximity to the premium amenities nearby.
Since 2007, Gamuda has established a strong
presence and brand name in Vietnam with
a proven track record of successful projects.
Given the prime location and Gamuda
Land’s established brand, this project will
play to the company’s strengths.
This investment is part of its quick turn-
around projects (QTP) strategy, which
aims to complement its township devel-
opment model through the deployment of
capital in diversified projects with an exit
time frame of 3-5 years.
Gamuda Land has four projects in Vi-
etnam, namely Gamuda City in Hanoi,
Celadon City and Elysian in HCMC as
well as Artisan Park in Binh Duong,out-
side of HCMC.
Gamuda shares closed two sen higher
or 0.45% to RM4.47 on Thursday, valuing
the group at RM11.9 billion.
 f r i d a y j u ly 2 1 , 2 0 2 3
KUALA LUMPUR (July 20): Prime Min-
ister Anwar Ibrahim has shared documents
pertaining to a government guarantee to
the Federal Land Authority (Felda) over a
debt waiver for settlers that he had signed,
following a letter of demand by one of his
predecessors, Tan Sri Muhyiddin Yassin.
“Thus, I urge Tan Sri MuhyiddinYassin
to apologise for the slander thrown at me,”
he said in a statement on Thursday (July
20) in response to Muhyiddin’s letter of
demand asking him to retract statements
made about the matter, and to apologise
within 24 hours.
One of the documents shared — dated
June 26, 2023 — was part of an assignment
of the financial service reserve account
(FSRA) between Felda, the Malaysian gov-
ernment, and Amanahraya Trustees Bhd,
which was signed by then Felda chairman
Tan Sri Idris Jusoh, Felda director general
Datuk Amiruddin Abdul Satar and Anwar
himself. The signing of the document was
witnessed by Deputy Secretary General of
Treasury (Investment) Datuk Anis Rizana
Mohd Zainudin.
Idris resigned from his position as Fel-
da chairman on June 30. Appointed to the
post in May 2020, he stepped down about
a year earlier than his scheduled May 2024
departure, saying he wanted to pave the
way for the new government to appoint a
Muhyiddin threatens to sue Anwar,
demands apology over Felda debt issue
KUALA LUMPUR (July 20): Former
prime minister Tan Sri Muhyiddin Yassin
has given Prime Minister Datuk Seri An-
war Ibrahim an ultimatum via a letter of
demand to apologise unconditionally and
retract statements Anwar had made over
the Felda settlers debt cancellation.
According to the letter by law firm Rosli
Dahlan Saravana Partnership (RDS) dated
July 18, Anwar was given 24 hours for the
apology or he would be sued.
Muhyiddin sent the letter of demand
because of statements the current prime
minister had made, alleging that Muhy-
iddin’s administration had never imple-
mented his promise to write off RM8.3
billion in loans granted to Felda settlers.
According to the letter, Anwar had
made the comments which is seen as de-
famatory and misleading, on July 7 at a
Felda Settlers Day 2023 ceremony in Ser-
dang regarding the settlers’ debt cancella-
tion, which was streamed live on Facebook
and widely disseminated with the aim of
bringing down Muhyiddin’s reputation,
the law firm said. The letter added that it
4 TheEdge CEO morning brief
h o m e
Anwar shows
document related
to govt guarantee
for Felda,
demands apology
from Muhyiddin
by Timothy Achariam
theedgemalaysia.com
more suitable replacement.
Meanwhile, according to the document
Anwar shared, the government would issue
a guarantee in favour of Amanahraya Trus-
tees, in its capacity as a security trustee.
The guarantee is for the benefit of
Amanahraya Trustees as sukuk trustee,
the holders of the sukuk murabahah,
and financiers, which pertain to the is-
suance of sukuk murabahah and a re-
volving credit-i facility.
Separately, the Ministry of Finance
(MOF) also issued a statement to say
that the FSRA is in relation to the gov-
ernment guarantee of RM9.9 billion to
by Timothy Achariam
theedgemalaysia.com
The Edge file photo
Tan Sri Muhyiddin Yassin (centre, front) seen
speaking to reporters at the Kuala Lumpur
Court Complex.
(the Facebook live stream video) had been
watched 142,000 times as of July 18.
The letter states that Anwar had made
these comments without “factual basis”
and is “slanderous to Muhyiddin’s image”.
“We are instructed by our client that the
said defamatory statement is wholly untrue,
unjustified, malicious and made without any
basis whatsoever,” the letter read.
“The statement, which is a lie, false and
Felda, to enable the authority to restruc-
ture its debts by strengthening its financial
position through the issuance of sukuk and
revolving credit to stabilise and strengthen
Felda’s financial position.
“The government will finance the re-
payment of the aforementioned sukuk by
allocating grants of RM990 million every
year for ten years,” it said.
Anwar — also the finance minister
— shared a payment order for the first
RM990 million, dated July 18, 2023. “This
is in line with the Madani Budget of 2023,”
the MOF statement read.
At an event in Tanjong Karang Wednes-
day night, Anwar said he would release
proof on Thursday that he had signed the
debt waiver scheme for Felda settlers.
Anwar was responding to Muhyiddin’s
demand for an open and unconditional
written apology from him following An-
war’s claim that Felda settlers’ debts, to-
talling RM8.3 billion, had not been waived
under Muhyiddin’s administration.
The letter of demand dated July 18
was issued through solicitors Messrs Rosli
Dahlan Saravana Partnership.
Prior to this, Anwar claimed that under
the Perikatan Nasional government’s 2021
and 2022 national budgets, no allocation
was made to resolve and dispose of the
settlers’ debts.
misleading, in its ordinary and natural
meaning or sarcasm, has tarnished and
damaged the good name and reputation
of our client and tarnished his image and
integrity as a former prime minister and
national leader,” it added.
The letter claimed that on July 8, Mu-
hyiddin had taken to social media to ex-
plain that it was his administration that
cancelled the debt in 2021.
The letter also brought up that Tun
Dr Mahathir Mohamed had called An-
war a “pathological liar” before.
“Dr Mahathir had called Datuk Seri
(Anwar) a ‘pathological liar’ in a court doc-
ument, where[in] he (Mahathir) is claim-
ing defamation against you (Anwar).This
is very regrettable that a statesman like Dr
Mahathir would label you (Anwar) like
that. Our client says that it is also very un-
fortunate that you as the prime minister
and finance minister, practices propaganda
of lies and slander,” the letter read.
Read the full story
 f r i d a y j u ly 2 1 , 2 0 2 3
KUALA LUMPUR (July 20): The Malay-
sian Automotive Association (MAA) has re-
vised upwards its car sales forecast for 2023
to 725,000 units, up 11.5% from its initial
650,000 units projected at the start of the year.
MAA president Mohd Shamsor Mohd
Zain said the revision was made after car
sales or the total industry volume (TIV)
showed upward momentum in the first
half of 2023 (1H2023), compared to the
same period last year.
TIV in 1H2023 rose 10.3% to 366,037
units from 331,746 units in 1H2022. For
2022, MAA recorded sales of 720,658 units, a
record high for the local automotive industry.
“The major reason for the higher num-
ber [projection] for this year is basically the
continuation of higher order books, and
this is expected to continue for the rest of
the year,” Mohd Shamsor said at the Motor
Traders and Manufacturers Performances
for 1H2023 briefing on Thursday (July 20).
Indeed, the upward momentum is ex-
pected to continue in the next few years,
he said, supported by sales from the na-
tional carmakers — Proton Holdings Bhd
and Perusahaan Otomobil Kedua Sdn Bhd
(Perodua). “Our forecast is also [consider-
ing] the performance of the national mak-
ers. So this is where [the forecast] will ac-
tually increase to higher numbers,” he said.
The sales for national carmakers in
1H2023 grew by 19% to 220,702 units
compared to 184,745 units in 1H2022,
while the sales for non-national mak-
ers stood at 105,959 units in 1H2023,
KUALA LUMPUR (July 20): Tesla, a
leading American multinational electric
automotive manufacturer, has announced
its strategic expansion into the Malaysian
market via Tesla Malaysia Sdn Bhd.
According to a joint statement by Tesla
and the Malaysian Investment Development
Authority (Mida), the move is a direct re-
sponse to the Battery Electric Vehicle Global
Leaders initiative introduced by the Ministry
of Investment, Trade and Industry (Miti).
The company will introduce its cut-
ting-edge lineup of electric vehicles (EVs)
to Malaysian consumers, starting with its
Model 3 and Model Y.
“As Tesla aims to cater to the diverse
needs and preferences of Malaysians, more
of its models will be introduced in the future.
“Malaysian customers may now access
Tesla’s official website to place their or-
ders,” it said.
Tesla is also committed to investing in
setting up a vast network of fast-charging
and regular-charging stations across stra-
tegic locations in Malaysia to provide EV
owners with a seamless and convenient
charging experience, thus encouraging
widespread EV adoption in the country.
5 TheEdge CEO morning brief
h o m e
MAA raises
Malaysia’s 2023
car sales forecast
to 725,000
by Anis Hazim & Reyanna Ng
theedgemalaysia.com
Shahrill Basri/The Edge
down 3% from 109,007 in 1H2022.
The optimism is also supported by the
stable economic outlook for 2023, with the
local economy projected to expand between
4% and 5%, driven by domestic demand. Im-
provements in the automotive industry supply
chain environment also bodes well for the per-
Tesla to drive
sustainable
mobility with
strategic expansion
in Malaysia
Bernama
The company will set up its state-of-the-
art head office and service centre in Cyber-
jaya, Selangor, for all of its corporate opera-
tions, marketing, training, customer support
activities and vehicle services, equipped with
advanced diagnostic tools and staffed with
highly trained Tesla technicians.
It would also establish experience cen-
tres in key metropolitan areas across Ma-
laysia, providing customers with firsthand
experience driving the latest EV models.
“These centres would serve as inter-
active spaces for potential buyers to gain
insights into the benefits of electric mo-
formance of TIV moving forward, said MAA.
“Bank Negara Malaysia’s (BNM) decision
to maintain the overnight policy rate (OPR)
at 3% will help [stabilise] the market in terms
of finance or loans,” Mohd Shamsor added.
However, the sustainability of the market
performance will depend on economic indi-
cators that can shift market buying sentiment.
This includes the possible softening of con-
sumer spending, weighed down by concerns
of rising living costs, shrinking disposable in-
come, weakening ringgit against major for-
eign currencies, and uncertainties about the
domestic and global economic environment.
On electric vehicles (EVs), Mohd
Shamsor said the EV infrastructure needs
to be properly laid out, such as increasing
the number of charging stations, before the
association can comment or begin strategic
planning concerning EVs.
“The EV is the way to go in the future.
But, as I said, the infrastructure needs to
come in before that,” he said. He also ac-
knowledged that the government is ramping
up efforts to have more EV charging stations.
Investment, Trade and Industry Minis-
ter Tengku Datuk Seri Zafrul Abdul Aziz
has said the government needs to look into
installing more charging stations to expand
the country’s EV ecosystem.
Tengku Zafrul, in a video put up on
Twitter on the same day, said EV carmaker
Tesla has given its commitment to raise the
number of superchargers across Malaysia
to more than the 10,000 charging stations
by 2025 that the government is aiming for.
bility and receive personalised assistance
from knowledgeable Tesla sales represent-
atives,” it said.
Meanwhile, Miti said it is focusing on
transforming Malaysia’s industrial and
investment landscape to not only attract
companies like Tesla to help enhance do-
mestic suppliers’ position in global val-
ue chains, but also open up new ‘greener’
economic opportunities and create high-
er-paying jobs for Malaysians.
Read the full story
Read also:
Tesla launches Model Y SUV in
Malaysia, delivery slated for early 2024
AmBank one of Tesla’s preferred
financing providers in Malaysia
Zafrul: Installation of more EV charging
stations needs to be given attention
 F R I D A Y J U LY 2 1 , 2 0 2 3
BLOOMBERG
Malaysia’s total
trade fell 16.3%
y-o-y in June to
RM222.1 bil
BY SURIN MURUGIAH
theedgemalaysia.com
KUALA LUMPUR (July 20): Malaysia’s total
trade fell by 16.3% to RM222.1 billion in June
2023, from RM265.4 billion a year earlier.
In a statement on Thursday (July 20), the
Department of Statistics Malaysia (DOSM)
said exports and imports also posted de-
creases of 14.1% and 18.9%, respectively.
However, it said Malaysia’s trade surplus
increased to RM25.8 billion, year-on-year
(y-o-y).
Chief Statistician Malaysia Datuk Sri Dr
Mohd Uzir Mahidin said the decline in ex-
ports was driven by both domestic exports
and re-exports.
He said domestic exports were worth
RM93.8 billion, contributing 75.7% to total
exports, that registered a decrease of 15.2%
in June 2023.
He said re-exports totalled RM30.2 bil-
lion, having shrunk by 10.3% as compared
to June 2022.
Imports were lower by 18.9%, from
RM121.1 billion to RM98.2 billion.
Meanwhile, Malaysia’s trade surplus in
June 2023 widened to RM25.8 billion, as
compared to the previous year.
This was the 38th consecutive month of
trade surplus since May 2020.
In comparison to May 2023, exports and
trade surplus grew by 3.7% and 64.4%,
while imports and total trade contracted
by 5.4% and 0.5%, respectively.
In terms of the commodity group, 144
out of 257 groups showed decreases as com-
pared to the same month of the previous
year and led by refined petroleum products.
As for imports, 174 out of 259 groups
recorded negative growth.
6 THEEDGE CEO MORNING BRIEF
H O M E
Mohd Uzir explained that the reduction in
exports was mainly contributed by the United
States (RM3.2 billion), followed by the Eu-
ropean Union (RM2.7 billion), Bangladesh
(RM1.9 billion), Japan (RM1.8 billion), India
(RM1.7 billion), Thailand (RM1.6 billion),
China (RM1.5 billion), Taiwan (RM1.1 bil-
lion) and Hong Kong (RM1.0 billion).
Meanwhile, he said the decrease in imports
was mainly attributed from China (RM6.1
billion), Taiwan (RM2.7 billon), Republic
of Korea (RM2.6 billion), the United States
(RM2.5 billion), Singapore (RM2.4 billion),
Indonesia (RM1.9 billion), Australia (RM1.6
billion), the European Union (RM1.6 billion)
and India (RM1.1 billion).
Commenting further on exports, Mohd
Uzir said the fall was driven by palm oil
& palm oil-based agricultural products
(RM5.3 billion); petroleum products
(RM5.1 billion); liquefied natural gas
(RM2.6 billion); crude petroleum (RM1.4
billion); palm oil-based manufactured prod-
ucts (RM1.4 billion) and chemical & chem-
ical products (RM1.3 billion).
Meanwhile, the contraction in imports
was recorded for electrical & electronic prod-
ucts (RM7.2 billion), petroleum products
(RM7.1 billion), chemical & chemical prod-
ucts (RM2.2 billion), manufactures of metal
(RM1.5 billion), transport equipment (RM1.4
billion), liquefied natural gas (RM1.1 billion);
and iron & steel products (RM1.0 billion).
Mohd Uzir said the decrease in imports
by the “end use” segment was contributed by
lower demand for intermediate goods, capital
goods and consumption goods. Imports of
intermediate goods (48.5% of total imports)
amounted to RM47.6 billion, posting a double
digit decrease of 25.7%, or RM16.5 billion.
He said capital goods, with a value of
RM9.8 billion, shrank by 12.1% as com-
pared to June 2022 and comprised 9.9%
of total imports.
“Consumption goods (8.3% of to-
tal imports) recorded an 11.8% decrease
from RM9.2 billion in the previous year,
to RM8.2 billion,” he said.
In addition, Mohd Uzir said total trade
for the second quarter (2Q) of 2023 de-
clined by 11.3% to RM643.2 billion, com-
pared to 2Q2022.
He said exports dropped by 11.1% from
RM392.3 billion in the preceding year to
RM348.7 billion, and imports with a value
of RM294.5 billion, eased by 11.5%.
A trade surplus of RM54.1 billion was re-
corded for the period, having shrunk by 8.8%.
During the first six months of 2023
(1H2023), total trade, exports, imports and
trade surplus registered a decrease.
Total trade decreased by 4.6%, support-
ed by the decline in exports (-4.5%), as well
as imports (-4.7%).
Consequently, trade surplus recorded a
higher value of RM118.5 billion.
MOF Inc
companies paid
RM50.7 bil
dividends to
govt in 2022
Bernama
PUTRAJAYA (July 20): Minister of
Finance (Incorporated) (MOF Inc)
companies have contributed RM50.7
billion in dividends to the government
for the financial year 2022, higher than
the previous year’s RM28.1 billion divi-
dend contribution, said Deputy Finance
Minister 1 Datuk Seri Ahmad Maslan.
He said the dividend contribution
needs to be continuously improved to
enable it to be returned to the peo-
ple in the form of development and
financial assistance.
“[It can be improved] through proper
management and governance,” he said
at a press conference after officiating a
leadership and good governance pro-
gramme for the Mof Inc board of di-
rectors and federal statutory bodies,
here today.
Ahmad Maslan said the dividend
contribution will be put into a consol-
idated fund for the purpose of devel-
opment and financial assistance to be
enjoyed by the wider public.
MOF Inc is a corporate body estab-
lished under the Minister of Finance
(Incorporation) Act 1957. The Act pro-
vides the authority for MOF Inc to enter
into contracts, acquisitions, purchases,
possessions, and holdings while main-
taining tangible and intangible assets.
Some MOF Inc companies include
Petronas, Amanah Raya Bhd, Cyber-
view Sdn Bhd, Felcra Bhd and Syarikat
Perumahan Negara Bhd.
Ahmad Maslan said companies in-
volved in the provision of infrastructure
and utilities are among MOF Inc com-
panies which contribute a low dividend
percentage to the government.
“These are companies facing chal-
lenges and cannot raise the price of
their services to the people arbitrarily,”
he said, citing Keretapi Tanah Melayu
Bhd (KTMB) as an example of an
MOF Inc company involved in pub-
lic transport.
Read also: SC’s waqf-featured funds
raised RM46.7 mil as of Dec 2022
F R I D A Y J U LY 2 1 , 2 0 2 3 7 THEEDGE CEO MORNING BRIEF
 f r i d a y j u ly 2 1 , 2 0 2 3
KUALA LUMPUR (July 20): The gov-
ernment does not intend to review the
existing power purchase agreements
(PPA) for large scale solar (LSS) to
align them with the recent increase in
the green electricity tariff (GET), ac-
cording to Minister of Natural Resourc-
es, Environment and Climate Change
Nik Nazmi Nik Ahmad.
“I think [the link between the exist-
ing LSS PPA contracts and the GET
hike] is unrelated. If we look at the green
electricity tariff alone, we look at how
our neighbours are doing it, the tariff
should be at a premium to conventional
electricity,” he told reporters on Thurs-
day (July 20) when asked whether the
government has any plan to review the
LSS PPA.
The government has committed to
increase the target of renewable energy
(RE) installed power capacity to 70%
by 2050 by tapping Malaysia’s abundant
solar resources through the widespread
deployment of rooftop solar.
The idea of LSS power plants is a
way for the country to quickly reach its
RE production targets. Applicants in-
terested in running LSS projects have
been invited to bid on four iterations of
the programme since the first round of
bidding in March 2016.
The last LSS4 was commissioned
during the Covid-19 period. The gov-
KUALA LUMPUR (July 20): The main
priority of waste-to-energy (WTE) plants
is addressing Malaysia’s huge waste prob-
lem, and energy generated is a bonus. But
such facilities are more costly than land-
fills, said Natural Resources, Environment
and Climate Change Minister Nik Nazmi
Nik Ahmad.
“Energy generated from WTE is a bo-
nus. As such, WTE falls under the Lo-
cal Government Development Ministry
(KPKT).
“While we recognise the importance
of WTE as the most sustainable solution
compared to landfills, we need to work
on the economics aspects of it for it to
be viable,” he said at an MIDF round-
table discussion “Navigating The Energy
Transition - What’s Next For Malaysia?”
on Thursday (July 20).
The minister pointed out that tipping
fees for landfills are far lower compared
to WTE plants. Tipping fees are usually
paid by state governments to landfill op-
erators to cover their operational costs in
managing waste.
“Tipping fees for landfills are very
cheap. We are looking at it from a holistic
perspective because it involves KPKT, the
8 TheEdge CEO morning brief
h o m e
No plan to review
ernment selected a total of 30 bids under
LSS4 in March 2021 — including Uzma
existing PPA
Bhd, Tenaga Nasional Bhd, Cypark
Resources Bhd and Solarvest Holdings
for large scale
Bhd — to develop solar farms with ex-
port capacity ranging from 10 MW to
solar despite
50 MW.
In his speech at MIDF’s roundtable
higher green
discussion “Navigating The Energy Tran-
sition — What’s Next For Malaysia?”,
electricity tariff,
Nik Nazmi said the government’s deci-
sion to adjust the GET to 21.8 sen per
says Nik Nazmi
kWh, from the current 3.7 sen/kWh in
August, is in line with regional standards.
“The 30% GET subscription quo-
ta limit has been abolished and 100%
by Syafiqah Salim subscriptions are now allowed. So, it’s
theedgemalaysia.com an opportunity also for businesses to
walk the talk and share the burdens of
bernama the energy transition. The revenue col-
lected from the implementation of the
GET will be used for developing and
increasing new RE capacity sources for
Malaysia. And eventually everyone will
benefit.
“If we can get the energy transition
right, everyone wins. Also, while we may
be a nation whose contributions to glob-
al greenhouse gas emissions appear mod-
est, we cannot deny the truth: climate
change knows no borders. It affects us
all. The ultimate bottom line is our col-
lective survival on this earth — the only
one we have,” he remarked.
Landfill not
ation all over Malaysia which includes 21
sanitary landfills, while 174 have already
sustainable for
been closed.
It is worth noting that the country’s
long-term waste
first WTE plant at Ladang Tanah Merah
in Negeri Sembilan, run by Cypark Re-
management,
sources Bhd, achieved commercial oper-
ation last December.
says energy
Later in February, the group received a
confirmation of feed-in-tariff commence-
minister
ment from the Sustainable Energy De-
velopment Authority (SEDA) to operate
a solid waste modular advanced recovery
and treatment waste-to-energy (SMART
by Syafiqah Salim WTE) plant.
theedgemalaysia.com The SMART WTE is a renewable ener-
gy power plant using biomass (solid waste)
state governments and local governments as feedstock with an installed capacity of
across the country,” he replied when asked 19.7300MW.
about the government’s plan to have WTE
plants in every state.
“So it’s a bit more complicated,” Read also:
he said, adding that one of the solu-
tions is to increase landfill tipping fees Nik Nazmi: Energy exchange in the
to make WTE projects more viable in works
the country.
According to a report by the Depart-
ment of National Solid Waste Management Malaysia ranked first place in SE Asia in
(JPSPN), there are 137 landfills in oper- WEF Energy Transition Index
 F R I D A Y J U LY 2 1 , 2 0 2 3
MST Golf is the
fifth listing to
close below IPO
price this year
BY HAILEY CHUNG & SYAFIQAH SALIM
theedgemalaysia.com
KUALA LUMPUR (July 20): MST Golf
Group Bhd is the fifth company this year to
conclude its maiden trading day on Bursa
Malaysia with its share price below its in-
itial public offering (IPO) price.
MST Golf ended its debut trading on
Thursday (July 20) at 78 sen, down 3.7%
from its IPO price of 81 sen. The Main
Market stock, which opened at 70.5 sen
and was the fourth most active counter on
the local bourse, struggled to rise beyond
its IPO price throughout the day, as its
share price hovered between 69 sen and
79.5 sen. It saw 75.78 million shares done.
Out of 19 IPOs so far this year, three other
Main Market listings and one ACE Market
debut had similar fate on their debut days.
The biggest under-performer was Radi-
um Development Bhd, which closed 23%
lower than its IPO price, followed by ACE
Market listee, Synergy House Bhd.
In response to the lacklustre opening
day performance, MST Golf executive di-
rector and group chief executive officer Ng
Yap said he understood the current weak
market sentiment.
KUALA LUMPUR (July 20): Stockbrok-
ing and corporate finance advisory firm
Mercury Securities Group Bhd has signed
an underwriting agreement with Public
Investment Bank Bhd (PIVB) for its up-
coming initial public offering (IPO) on the
ACE Market of Bursa Malaysia.
In a statement on Thursday (July 20),
Mercury Securities said the IPO com-
prises a public issuance of 157.1 million
new shares — representing 17.59% of
the group’s enlarged share base of 893
million shares — as well as an offer for
sale of 71.51 million existing shares —
representing 8.01% of the enlarged share
base — through private placement to se-
lected investors and Bumiputera investors
approved by the Ministry of Investment,
Trade and Industry (Miti).
Of the 157.1 million under the public
issue, 44.65 million will be made availa-
ble to the Malaysian public, followed by
9 THEEDGE CEO MORNING BRIEF
H O M E
From left: MST Golf executive director and group CEO Ng Yap, and executive chairman Low Kok Poh
at the group's listing ceremony at Bursa Malaysia on Thursday, July 20, 2023.
“The whole reason for this IPO was to
raise enough funds to speed up our expan-
sion.To us, we are just focusing on our fun-
damentals.We have put ourselves in a posi-
tion to grow our company to the next phase.
Obviously, we hope for better (share price
performance) but it is fine,” he said.
Based on its closing price of 78 sen and
an enlarged share captal of 820.87 million
shares, MST Golf has a market capitali-
sation of RM640.28 million.
It had expected to have a market capi-
talisation of RM664.9 million upon listing,
which would value the company at 27 times
its price-earnings ratio (PER) — based on
its earnings per share of three sen in the fi-
nancial year ended Dec 31, 2022 (FY2022).
The valuation is above the Bursa Malay-
sia Consumer Index’s PER of 20.02 times,
according to Bloomberg. MST Golf’s clos-
ACE market-
bound Mercury
Securities inks
underwriting
agreement
with Public
Investment Bank
BY PRIYATHARISINY VASU
theedgemalaysia.com
SUHAIMI YUSUF/THE EDGE
est listed retail competitors, such as InNa-
ture Bhd, Padini Holdings Bhd and AEON
Co (M) Bhd, are trading at lower PERs.
InNature’s PER stood at 18.97 times, fol-
lowed by AEON at 14.58 times and Padini
at 10.62 times. Mr DIY Group (M) Bhd
has the highest PER at 31.02 times.
Read the full story
More on MST Golf:
MST Golf optimistic on financial outlook
as golf is far from being a dying sport
MST Golf misses fairway on Main Market
debut, dips 13% to open at 70.5 sen
22.33 million shares to the group’s eligible
directors, employees and those who have
contributed to its success, 45.47 million
shares are to be placed out to selected in-
vestors and the remaining 44.65 million
shares to Bumiputera investors approved
by Miti.
PIVB will underwrite 66.98 million
issue shares made available for applica-
tion by the Malaysian public and eligible
persons.
“Our listing will enhance our visibility
and reputation in the marketplace, and
enable our directors, employees, business
partners and public investors to partic-
ipate in the growth and continued ex-
pansion of our business whilst increasing
shareholders’ value,” said Mercury Securi-
ties’ managing director Chew Sing Guan.
Read the full story
 F R I D A Y J U LY 2 1 , 2 0 2 3
Sime Darby,
Ramsay to sell
US$1.3 bil Asian
healthcare
venture —
sources
BY KANE WU & YAN TOULTRA NGUI
Reuters
HONG KONG/SINGAPORE (July
20): Australia’s Ramsay Health Care
and Malaysia’s Sime Darby have hired
Bank of America and Deutsche Bank
to sell their US$1.3 billion (RM5.9
billion) healthcare joint venture, two
sources with direct knowledge of the
matter said.
The companies could launch the
sale of Selangor, Malaysia-based
Ramsay Sime Darby Health Care
within the next two months depend-
ing on market conditions, one of the
sources said.
Both sources declined to be identi-
fied as the matter is private.
The joint venture’s sale would mark
the largest healthcare deal in Southeast
Asia since 2019 and comes at a time
when healthcare assets are attracting
more interest as investors bet on the
sector’s ability to weather tough eco-
nomic conditions.
Ramsay Sime Darby referred Reuters’
HANOI (July 20): Malaysia attaches impor-
tance to and desires to develop a strategic
partnership with Vietnam, Foreign Minister
Datuk Seri Dr Zambry Abdul Kadir stated.
Zambry and his Vietnamese counterpart
BuiThanh Son co-chaired the seventh meet-
ing of the Joint Commission for Economic,
Scientific, and Technical Cooperation be-
tween the two countries as part of his official
visit to Vietnam on July 19 to 20.
Son said the visit is an important event,
held on the sideline of Prime Minister Datuk
Seri Anwar Ibrahim’s official visit toVietnam,
and on the occasion of the 50th anniversary
ofVietnam-Malaysia diplomatic ties this year,
according to Vietnam News Agency (VNA).
During the seventh meeting of the Joint
Commission for Economic, Scientific, and
Technical Cooperation, the two sides focused
on reviewing and evaluating the implementa-
10 THEEDGE CEO MORNING BRIEF
H O M E
query on the appointment of the banks
to its owners.
Ramsay, Australia’s largest private
hospitals operator, and Sime Darby re-
ferred Reuters to their announcements
from June 28 saying the joint venture
partners were exploring the sale of the
company, which confirmed a Reuters’
report in late-March.
Spokespeople for Sime Darby and
Ramsay did not comment on the ap-
pointment of the banks. Deutsche de-
clined to comment. Bank of America
did not immediately respond to request
seeking comment.
In the latest sign of interest in the
sector, last week, Singapore’s Thom-
son Medical announced the acquisition
of Vietnam-based healthcare facilities
provider Far East Medical Vietnam for
US$381.4 million.
Ramsay Sime Darby was set up in
2013 through an equal joint venture
to expand their healthcare business in
Southeast Asia.
Its portfolio consists of 1,530 li-
censed beds across seven hospitals in
Malaysia and Indonesia, according to
Sime Darby’s 2022 annual report. The
company employs 4,500 people.
An earlier effort to sell Ramsay
Sime Darby to IHH Healthcare fell
through last September, soon after a
KKR & Co Inc-led consortium with-
drew a near US$15 billion offer for
Ramsay.
IHH, one of Asia’s largest private
healthcare groups, had presented a
RM5.67 billion offer for Ramsay Sime
Darby, but a binding agreement could
not be reached.
Vietnam, Malaysia
eye stronger
strategic partnership
Bernama
tion of agreements signed by senior leaders of
the two countries, including the Action Pro-
gramme on carrying out theVietnam-Malaysia
strategic partnership for the 2021-2025 period.
They agreed to propose some major
orientations to the two nations’ PMs in a
bid to promote the strategic partnership
in the coming time, VNA added.
Accordingly, the two sides will boost co-
ordination to intensify exchange of visits and
Hong Kong chief
executive to visit KL
on July 27-29
BY SUFI MUHAMAD
theedgemalaysia.com
KUALA LUMPUR (July 20):The Hong
Kong Special Administrative Region
(HKSAR) chief executive John Lee will
lead a delegation to Kuala Lumpur from
July 27 to 29, according to the Hong Kong
Trade Development Council (HKTDC).
“With this delegation to Malaysia, we
aim to deepen the strong bond between
our two places and further strengthen
the economic ties between Hong Kong
and Asean countries,” HKTDC chair-
man Dr Peter Lam Kin-ngok said in a
statement on Thursday (July 20).
“This trip will serve as a platform to
exchange ideas, explore new opportu-
nities and foster greater collaboration
between businesses and governments.
“We believe that by working together
we can achieve much success and pros-
perity for Hong Kong and Malaysia and
the region,” he said.
The delegation, organised by the coun-
cil, will include HKSAR government prin-
cipal officials, as well as over 30 business
leaders in different fields including eco-
nomic development, financial services,
innovation, logistics, and transport.
HKTDC said the mission aimed to
explore collaboration and partnerships
between Hong Kong and Malaysia in
various sectors, with the highlight of the
visit being a luncheon with Malaysian
business leaders on July 28.
meetings at all levels and across all channels,
as well as people-to-people exchanges, and
expand defence and security cooperation.
The two countries will strive to lift two-
way trade to US$18 billion (RM81.8 billion)
soon in a more balanced direction, limiting
the application of trade barriers, and capi-
talising on opportunities from regional trade
agreements that both sides participate in,
such as the Regional Comprehensive Eco-
nomic Partnership (RCEP) and the Com-
prehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP).
They agreed to step up cooperation in
other important fields such as marine tech-
nology, oil and gas, education and training,
labour, transportation, culture, sports, tour-
ism and cooperation among localities; and
in new areas such as the digital economy,
artificial intelligence, and renewable energy.
 F R I D A Y J U LY 2 1 , 2 0 2 3
UEM Sunrise
jumps to its
highest close
in two years
BY SUFI MUHAMAD
theedgemalaysia.com
KUALA LUMPUR (July 20): It ap-
pears that property developer UEM
Sunrise Bhd has piqued investors’ in-
terest, as its share price reached a two-
year high amid active trades on Bursa
Malaysia on Thursday (July 20).
The counter closed up 15.38% or
six sen to 45 sen — the highest since
its 45.5 sen closing price on April 6,
2021 — with a market capitalisation
of RM2.28 billion.
It saw 113.91 million shares change
hands, surpassing its 200-day average
volume of 11.29 million shares, and
over 60 times the 1.86 million shares
that were transacted on the previous
trading day on Tuesday.
The stock has jumped 76.47%
year to date and gained 52.94% over
the past 12 months.
The company is planning to develop
its first ‘Build-to-Rent’ (BTR) project
in Melbourne, according to its Bursa
filing last month (June 21), in partner-
ship with Greystar Real Estate Partners.
Under the deal announced on June
21, UEM will sell a property in Mel-
bourne, Australia, measuring 1.33 acres
to GS Collingwood Property Trust I
— an investment vehicle managed and
controlled by a subsidiary of Greystar
— for A$45.15 million or RM143.25
million. At the same time, UEM’s unit
is appointed to develop the property for
the new owner into a BTR develop-
ment for a total payment of A$232.18
million or RM731.48 million.
The proposed development is ex-
pected to include approximately 400
apartment units across two buildings,
with a mix of studios and one-, two-
and three-bedroom apartments suit-
able for multi-generational living. At
the time, UEM said planning docu-
ments were expected to be submitted
this month, and subject to approvals
received, construction is anticipated
to commence in mid to late 2024 and
take about three years to complete.
Read the full story
11 THEEDGE CEO MORNING BRIEF
H O M E
Recovery of ringgit
to prop Genting
Bhd’s shares higher,
Maybank IB says
BY SURIN MURUGIAH
theedgemalaysia.com
KUALA LUMPUR (July 20): Maybank In-
vestment Bank has maintained its “Buy” rating
on Genting Bhd at RM4.20 but trimmed its
EPS (earnings per share) estimates by 4%-
24% and sum-of-parts target price (SOP-TP)
to RM5.36 (from RM5.61) on slower-than-ex-
pected recovery at Genting Malaysia Bhd
(GenM) and Genting Singapore Plc.
In a Wednesday (July 19) note, Maybank
analyst SamuelYin ShaoYang said that after a
torrid 3Q2023 wherein the MYR depreciat-
ed to a recent low of RM4.68: US$1.00, the
ringgit has recovered to RM4.54:US$1.00,
as cooler inflation in the United States eased
Maybank cuts
Farm Fresh TP
by 25% to RM1.20
BY LAM JIAN WYN
theedgemalaysia.com
KUALA LUMPUR (July 20): Maybank
Investment Bank Bhd has cut its tar-
get price for dairy products maker Farm
Fresh Bhd to RM1.20, down 40 sen or
25% from RM1.60 prior, after lowering
the price-earnings ratio (PER) of the con-
sumer sector to 24 times, from 26 times.
This represents a 10 sen, or a 9.09%
premium to its share price of RM1.10 at
the time of writing, which gives the counter
a market capitalisation of RM1.10.
“Cost challenges are expected to per-
sist in the near term but stable product
demand, product price hikes and soften-
ing raw material costs in 2HFY2024 (first
six months ended Sept 30, 2023) should
drive stronger earnings h-o-h (half-on-
half),” said analyst Jade Tam in a note on
Thursday (July 20).
According to her, Farm Fresh plans to
mitigate the ongoing issue of high Austral-
ian farmgate average selling prices (ASPs)
by reducing its reliance on raw milk from
third party farmers.
It aims to achieve this by increasing its
upstream milk output and increasing its
pressure on the Federal Reserve Board (FRB)
to raise the Fed Funds Rates (FFR) further.
He said there is a strong correlation
between the ringgit/USD and Genting’s
premium/(discount) to SOP/share because
of its high foreign shareholding.
“We notice that foreigners tend to buy/
sell Genting when the ringgit appreciates/
depreciates,” he said.
Yin estimates that Genting is currently
trading at 65% below its SOP/share valu-
ation (our SOP-TP is based on 60% dis-
count to SOP/share).
“Our house view is that the ringgit will
recover to RM4.15: US$1.00 towards end-
FY2024E, as the FRB pivots away from
more FFR hikes after end-FY2023E (the
FRB has guided for another 50bps (basis
points) hike in FFR by end-FY2023E).
“Thus and on balance of probabilities,
we believe that Genting’s share price dis-
count to SOP/share could narrow, going
forward,” he said.
Read also: Genting’s indirect units issue
US$400 mil senior notes
internal to external milk sourcing ratio to
69:31, from 48:51 in FY2023.
“Easing whole milk powder ASP also
offers an additional avenue of earnings sup-
port once the group rolls over into a lower
inventory cost cycle,” she said, adding that
the group has hedged its whole milk pow-
der ASPs at around US$3,240 per metric
tonne from June until October 2023, which
reflects cost savings of around 15% from
its current average whole milk powder ASP
of US$3,800 per metric tonne.
For context, whole milk powder ac-
counts for about 49% of Farm Fresh’s to-
tal milk requirement in FY2023, up from
38% in FY2023, said Tam.
She lowered Farm Fresh’s earnings es-
timates for the financial year ended March
31, 2024 (FY2024) and FY2025 by 11% to
21%, but maintained FY2026 projections
due to its current raw milk cost structure.
“We expect Farm Fresh’s 1HFY2024
earnings to be weak, with the bulk of whole
milk powder cost savings coming through
in 2HFY2024.
“Farm Fresh’s new product pipeline and
regional expansion into the Philippines is on
track, as it targets to commission its process-
ing plant in August 2023.The group plans to
launch its powdered growing up milk variant
in October 2023 and introduce its ice cream
product for the domestic consumer-pack-
aged goods segment in January 2024.
The counter has trended lower of late,
falling to its lowest closing price of RM1.05
on July 12, amid concerns over stiff com-
petition for raw milk.
 f r i d a y j u ly 2 1 , 2 0 2 3 12 TheEdge CEO morning brief

h o m e

news In brief
www.ekuinas.com.my

Ornapaper to acquire land for RM31 mil

KUALA LUMPUR (July 20): Ornapaper Bhd’s (Orna) wholly-owned subsidiary Ornapaper
Industry (M) Sdn Bhd has entered into sales and purchase agreements with Faithview Group
Development Sdn Bhd for the proposed acquisition of two leasehold vacant lots worth
RM30.75 million. Both land parcels in Mukim Krubong, Melaka are for a purchase consideration
of RM18.52 million and RM12.23 million, respectively. In a filing with Bursa Malaysia, the
company said the proposed acquisition represents an opportunity for Orna group to build up its
landbank at a reasonable price for long-term investment purposes. — Bernama

Shahril to take over as Ekuinas
chairman as Raja Arshad retires
KUALA LUMPUR (July 20): Ekuiti
Nasional Bhd (Ekuinas) has named Tan Sri
Shahril Ridza Ridzuan to succeed Tan Sri
Raja Arshad Raja Tun Uda, who stepped
down from the role of independent non-
executive chairman of the government-
linked private equity firm on July 18. In
a statement, Ekuinas said Raja Arshad,
the firm’s inaugural chairman, is leaving
after steering the firm since 2009.
Shahril, meanwhile, is currently the firm’s
independent non-executive director,
a role he held since October last year.
Under Raja Arshad’s tenure as its first
chairman, Ekuinas accumulated a total
investment portfolio of 42 companies
through both direct investments and
outsourced fund managers, with total
capital deployed exceeding RM5.1
billion. Some of Ekuinas’ past and current
investments include APIIT Education
Group, Tenby Schools, Al-Ikhsan Sports
Sdn Bhd, Icon Offshore Bhd, and Orkim
Sdn Bhd. — by Priyatharisiny Vasu
Hextar Global eyes commodities
trading to diversify income
KUALA LUMPUR (July 20): Agrochemical
company Hextar Global Bhd is seeking
to diversify its existing businesses to
include trading of commodities, such as
agriculture produce, energy resources, as
well as metals and minerals, and precious
metals. Hextar said it may embark on
viable ventures relating to the trading
business through organic approaches
or otherwise, including but not limited
to, strategic businesses/investments,
projects, joint ventures and/or mergers
and acquisitions of suitable businesses/
investments in the relevant industry. It
anticipates that the trading business will
potentially contribute 25% or more to
the group’s net profit and/or result in a
diversion of 25% or more of its net assets.
— by Kang Siew Li
Read the full story
Industronics to settle RM27 mil debts
by issuing new shares
KUALA LUMPUR (July 20): Industronics Bhd,
a mature electronics company, plans to pay
off RM26.84 million it owed to four creditors
by issuing 536.8 million new shares at five sen
per share. As at end-May 2023, the group had
total trade and other payables of RM44.05
million, which will be reduced to RM17.21
million after the proposed debt settlement,
on a pro forma basis. In a bourse filing on
Thursday (July 20), Industronics said it has
entered into debt settlement agreements
with the four creditors, which entails a
settlement of debts totalling RM26.84 million
owed to LTL (RM9.54 million), Zhou Qilin
(RM6.13 million), Lissington Ltd (RM7.79
million) and Fuka Meito (Hong Kong) Ltd
(RM3.38 million). — by Kang Siew Li
Read the full story
Destini gets extension to supply
aircraft parts to RMAF
KUALA LUMPUR (July 20): Destini Bhd has
secured a two-year contract extension to
supply non-proprietary aircraft spare parts
for the Royal Malaysian Air Force (RMAF)
worth RM222.25 million. In a bourse filing,
the engineering solutions provider said the
extension was granted by the Ministry of
Defence (Mindef) via a letter of award on
July 18 to its wholly owned Destini Prima
Sdn Bhd (DPSB) for July 1, 2023 to June 30,
2025. With the extension, the contract ceiling
has been raised to RM403.75 million. The
original contract, with a ceiling of RM121
million, was first awarded in July 2020,
allowing DPSB and 29 other local companies
identified by Mindef to participate in parcels
of bidding should RMAF require any non-
proprietary aircraft parts. The ceiling was
subsequently raised to RM181.5 million in
January this year. That agreement expired on
June 30, 2023. “DPSB is required to provide
a performance bond when receiving orders
from the government. The performance bond
shall amount to 2.5% for orders more than
RM200,000 and 5% for orders more than
RM500,000,” it said. — by Anis Hazim
MCE secures auto parts supply
contract to Proton
KUALA LUMPUR (July 20): MCE Holdings
Bhd’s unit has secured contracts to supply
various electronic and mechatronics parts
for Proton’s new car model. In a filing to
the stock exchange on Thursday (July
20), the auto parts manufacturer said its
wholly-owned subsidiary Multi-Code
Electronics Industries (M) Bhd is expected
to supply parts for a duration of 35 months
from the first quarter of the financial year
ending July 31, 2024 (FY2024) onwards.
The project is expected to generate total
revenue of approximately RM13.24 million
for MCE over the 35-month period whilst
the estimated total investment cost is
RM610,000. — by Priyatharisiny Vasu
Swift Haulage’s associate launches
Sabah’s largest cold chain hub
KUALA LUMPUR (July 20): Swift Haulage
Bhd said its associate company, Hypercold
Logistics Sdn Bhd, launched the largest cold
chain hub in Kota Kinabalu on Thursday
(July 20) to serve a wider coverage area
in Sabah. The hub is strategically located
in the Kota Kinabalu Industrial Park, and
will serve Kota Kinabalu, Sandakan, Lahad
Datu, Tawau, Labuan, Beaufort, Sipitang,
Tenom, Keningau, and Kudat, said the
leading haulier and integrated logistics
service provider. “When the expansion is
fully completed in November 2023, the
hub will have a capacity of 6,389 pallets —
making it the largest in Sabah,” said Swift in
a statement. — by Priyatharisiny Vasu
Read the full story
Read also:
Betamek posts 1Q profit of RM4.8 mil
Armada Kraken FPSO operational at
90%
Unitrade partners Invest Kedah to
develop modular housing systems
 F R I D A Y J U LY 2 1 , 2 0 2 3
Fahmi: Elon
Musk’s Starlink
to bring internet
services to
remote areas
Reuters
KUALA LUMPUR (July 20): Malaysia has
issued a licence to Starlink, the satellite com-
munications service started by Elon Musk,
to provide internet services in the country,
particularly in remote areas, its communi-
cations minister said on Thursday (July 20).
Minister Fahmi Fadzil said in a Face-
book post that Starlink, which is operated
by Musk’s SpaceX, would begin by pro-
viding its services to schools and higher
education institutions.
KUALA LUMPUR (July 20): Pestech
International Bhd said the High Court on
Thursday (July 20) dismissed the ex-par-
te injunction obtained by the group’s sub-
sidiary against Syarikat PembenaanYeoh
Tiong Lay Sdn Bhd (SPYTL), the main
contractor for the Gemas-Johor Bahru
electrified double-track rail project.
The wholly-owned subsidiary, Pes-
tech Sdn Bhd (PSB), had earlier ob-
tained the injunction to restrain SPY-
TL from using or tampering with PSB’s
machinery that had been used for the
double-track rail project.
PSB had rented the machinery to
another Pestech unit, Pestech Technol-
ogy Sdn Bhd (PTech), for the purpose
of undertaking the sub-contract for the
construction of the project.
However, SPYTL had in May termi-
nated PTech as the sub-contractor for the
project. Ptech is disputing the termination,
describing it as unlawful and amounting to
SPYTL’s repudiation of the sub-contract.
In a bourse filing, Pestech said that
the court had in its decision on Thursday
ruled that the dismissal of the injunction
is subject to an express undertaking to
be provided by SPYTL within 48 hours,
not to transfer or dispose of the machin-
ery, and not to move the machines from
the project site, until the main lawsuit
between the parties is disposed of.
The lawsuit is fixed for case manage-
ment on July 25 for the parties to take direc-
tions in regard to the trial, added Pestech.
The double-track rail project, with a
13 THEEDGE CEO MORNING BRIEF
H O M E
The government was also prepared to
work with satellite communications firms,
including Starlink, to ensure 100% internet
coverage in populated areas, Fahmi said.
Around 3% of populated areas in Ma-
laysia face issues with internet access, due
to geographical and infrastructure chal-
lenges, he added.
The announcement comes a week after
Malaysian Prime Minister Datuk Seri An-
war Ibrahim held a call with Musk to dis-
cuss his companies investing in Malaysia.
The government earlier this year an-
nounced that his electric vehicle (EV) mak-
er Tesla would open an office in Malaysia.
It also approved the company’s application
to import battery-run EVs into the coun-
try, as part of a wider government effort
to promote sustainable mobility.
Separately on Thursday, Tesla unveiled
its sport utility electric vehicle — Model
Y — at an event in Kuala Lumpur, with
deliveries to Malaysia to begin next year.
The rear-wheel drive model has a starting
price of RM199,000,Tesla said in a statement.
Court dismisses
Pestech’s injunction
against main
contractor of
Gemas-JB rail project
BY ANIS HAZIM
theedgemalaysia.com
fixed sub-contract price of RM399 mil-
lion, was awarded in September 2018 to
PTech under the SIPP-YTL joint ven-
ture — a consortium between SIPP Rail
Sdn Bhd and SPYTL.
Pestech had previously stated that
PTech has completed nearly 70% of the
project, with RM140 million in balance
sum of the contract to claim, in which its
unclaimed works is worth about RM29
million. The balance cost to come for the
project is between RM45 million and
RM55 million.
Read also:
Gartner: Global IT spending seen
growing 4.3% in 2023
US investigating sale of paper shopping
bags from Malaysia, other countries
Federal govt to
ensure Sarawak’s
vision of having
own airline
realised soon
Bernama
KUCHING (July 20): The federal gov-
ernment will ensure the MASwings take-
over process is smooth so that Sarawak’s
vision of having its own airline can be
quickly realised, said Transport Minister
Anthony Loke.
He said the takeover discussion be-
tween the Sarawak government and
Khazanah Nasional Bhd, which owns
MASwings through Malaysia Aviation
Group, is proceeding well.
“After the airline is operated (by the
Sarawak government), it can focus not
only on rural air services (RAS) but may
be expanded as a regional airline.
“I am confident the airline will be
able to thrive as Sarawak has deep pock-
ets. Airlines need financial resources to
operate and Sarawak possesses a huge
capital,” he said in his speech at the
memorandum of understanding signing
ceremony for the RAS takeover between
the federal government and Sarawak gov-
ernment here on Thursday (July 20).
RAS is defined as non-economic air
services carried out to fulfil the social
needs of communities living in the in-
terior of Sabah and Sarawak, and this is
part of the federal government’s national
service to these communities.
The cost for the RAS operation by
the operating company is borne fully by
the federal government in the form of
subsidies and aircraft lease rental.
When met by reporters after the
event, Loke said the RAS operation is
still undertaken by MASwings and his
ministry is committed to continuing with
the subsidy even after Sarawak takes over
the airline.
“The subsidy given to MASwings
will continue. The subsidy is about
RM210 million a year for both Sa-
bah and Sarawak (operations), and
that will be continued.
“We will sign a fresh agreement once
Sarawak has taken over MASwings. A
fresh agreement will be negotiated and
we will proceed with a new agreement
for 2025 and beyond because the current
agreement lasts until the end of 2024,”
he added.
 F R I D A Y J U LY 2 1 , 2 0 2 3
IDE survey finds
73.4% of voters
in Selangor have
positive perception
of Anwar
Bernama
SHAH ALAM (July 20): A total of 73.4%
of voters in Selangor have a positive percep-
tion of Prime Minister Datuk Seri Anwar
Ibrahim’s leadership, according to a survey
conducted by Institut Darul Ehsan (IDE).
IDE executive chairman Prof Datuk Dr
Mohammad Redzuan Othman said the re-
sults of the Voter Perception Study ahead
of the Selangor election on Aug 12 showed
that 26.3% of that total saw Anwar as a
leader who can drive the Malaysia Madani
agenda towards a better nation.
He said 16.9% believe the prime min-
ister was able to unite all the races; 16.1%
were confident that Anwar, who is also
Pakatan Harapan (PH) chairman, was a
leader who fights corruption and abuse
of power while another 14.1% see him as
capable of curbing the rise in living costs.
BERNAMA
KLANG (July 20): Parti Amanah Negara
(Amanah) will announce on Monday (July
24) evening, the list of its candidates for
the six state elections next month.
Its president Datuk Seri Mohamad
Sabu however, did not disclose the time
and venue for the announcement.
“The announcement will be in the
evening, 24th of July. We will proba-
bly announce our candidates for all six
state elections. The venue, however, has
yet to be confirmed,” he told reporters
after opening the Klang Area Farmers
Organisation’s Office here on Thursday
(July 20).
14 THEEDGE CEO MORNING BRIEF
H O M E
BERNAMA
Mohammad Redzuan said the survey
was carried out by IDE from May 12 to
15 involving 1,693 respondents covering
56 state constituencies.
It also revealed that only 18.7% of the
respondents had a negative perception of
Anwar. Among others, they were skepti-
cal of him rejuvenating the economy and
championing Malay interests and Islam.
Mohammad Redzuan said the results
of the study also showed that 58% would
vote for PH and Barisan Nasional (BN) in
the upcoming state polls, while 16% will
DAP submits
opt for Perikatan Nasional (PN).
He said 26% of the respondents were
names of more
still fence-sitters, although, among them,
69.1% had a positive perception of Anwar.
than 19 potential
The survey also covered first-time vot-
ers aged between 18 and 24, with 50%
candidates
of them backing PH-BN, PN (17%) and
fence-sitters (33%), he said.
— Chow
Mohammad Redzuan also said that
78.9% of respondents were enthusiastic
about going to the ballots, while 68.5%
of first-time voters felt the same.
In the 15th general election (GE15), Bernama
Selangor recorded a 78.6% voter turnout.
Mohammad Redzuan said Anwar’s GEORGE TOWN (July 20): Penang
events at several universities and in Selan- DAP has submitted more than 19 names
gor, in particular, had a positive impact on as potential candidates to contest in the
his popularity, which the survey revealed upcoming state elections.
was at about 80% currently. Its chairman Chow KonYeow said the
“There has been a positive impact that list had been submitted to DAP secre-
has prompted a lot of changes among vot- tary-general Anthony Loke and the Cen-
ers, especially involving Umno members, tral Election Committee would finalise
towards the federal government, after An- the list.
war revealed how he had stopped attempts “The state DAP submitted more than
to deregister the party,” he said. 19 names including the possibility of
However, Mohammad Redzuan said some new faces for consideration,” he
voter trends will be much clearer in the told reporters after attending the Men-
second week of the polls campaign, adding torConnect 2023 launching ceremony
that typically, 20% of fence sitters would here on Thursday (July 20).
have made up their minds two days before In the last 14th general election
polling day. (GE14), DAP won 19 out of 40 state
seats in Penang.
He said the state DAP will announce
Read also: Anwar insists he won’t oppress and introduce the candidates once the
anyone, especially the Opposition names are finalised.
State polls:
Prior to this, Selangor Amanah chair-
man Izham Hashim confirmed that the
Amanah to
party would contest nine out of the 56
state seats in Selangor.
announce list of
The Election Commission (EC) has set
the state polls in Selangor, Kedah, Penang,
candidates on
Kelantan, Terengganu and Negeri Sembi-
lan to be held simultaneously on Aug 12,
July 24
with nomination day on July 29 and early
voting on Aug 8.
Bernama Read also: Revelation of REE theft not
intended to tarnish Kedah MB’s image,
says Saifuddin
 F R I D A Y J U LY 2 1 , 2 0 2 3
KUALA LUMPUR (July 20): A former
senior vice-president of Finance and Cor-
porate Services of Consortium Zenith
BUCG Sdn Bhd (CZBUCG) told the Ses-
sions Court on Thursday (July 20) that
former senior director Datuk Zarul Ah-
mad Mohd Zulkifli told him and another
former director of the company that Zarul
had bribed former Penang chief minister
Lim Guan Eng in relation to the Penang
undersea tunnel project.
Azli Adam, 58, said the conversation
took place at the Malaysian Anti-Corrup-
tion Commission (MACC) headquarters
in Putrajaya in January 2018, in the inter-
rogation room.
The former senior VP said that at the
time, Zarul, former director Ibrahim Sa-
hari and Azli were in the same room but
none of the MACC officers was present.
Azli said Zarul was then under remand and
that he (Azli) was called in as a witness. It
was then that Zarul informed them of the
purported bribes given to Lim.
However, Azli agreed, when cross-ex-
amined by defence counsel Gobind Singh
Deo, that he had also testified in anoth-
er case in Shah Alam in November 2019
where businessman G Gnanaraja was ac-
cused of cheating Zarul.
On Thursday, Azli, the 28th prosecution
witness in Lim’s undersea tunnel graft tri-
al, also told the court that a Public Bank
cheque amounting to RM2 million by CZ-
BUCG dated Aug 17, 2017, which was
tendered in this trial, was the same cheque
referred to as the purported payment in
the Gnanaraja trial.
KUALA LUMPUR (July 20): Swatch
Group (M) Sdn Bhd’s application to seek
leave (permission) for a judicial review
against the government’s seizure of its
“rainbow theme” collection watches two
months ago will now be heard on Aug 23.
The Edge understands that Swatch has
made several amendments to its applica-
tion which was allowed during brief pro-
ceedings in chambers before High Court
judge Datuk Amarjeet Singh Serjit Singh.
The Swiss watchmaker’s leave applica-
tion was initially set for hearing on Thurs-
day (July 20) but has been postponed fol-
lowing the amendments.
In its application filed on June 24
Messrs Nizam Bashir Advocates, the in-
ternational brand was looking to quash the
notice of seizure, and for the return of the
watches. It is also seeking aggravated and
exemplary damages.
It named the minister, the Home Min-
istry’s secretary general, the ministry’s en-
forcement division secretary, and the gov-
ernment as respondents.
15 THEEDGE CEO MORNING BRIEF
H O M E
ZAHID IZZANI/THE EDGE
The witness said he prepared the pay-
Former ment voucher and cheque to be signed,
and on instructions from Zarul, Azli had
Consortium Zenith on Aug 18, 2017, gone to the Public Bank
Mont Kiara branch to withdraw the RM2
BUCG senior million cash, after which Azli placed the
money in two bags and gave the bags to
VP says Zarul Zarul.
Azli said when he was quizzed in 2018,
informed him of investigations were centred on Gnanara-
ja, who is alleged to have cheated Zarul
bribing Guan Eng in seeking RM19 million in a bid to close
investigations against Zarul.
BY HAFIZ YATIM
theedgemalaysia.com Read the full story
Read also: Guan Eng-Muhyiddin
defamation suit over Yayasan Albukhary
set for trial July next year
bisexual, and transgender (LGBT) rights.
Aug 23 leave In its application, the company said it has
not received any complaints from the public
hearing for since it began selling the items. It also said that
the colours of the rainbow and celebrating
Swatch’s bid to pride represent international human rights
for greater respect of celebrating love for all
challenge ‘rainbow’ genders and races without discrimination.
While the authorities said that the
watches seizure watches have elements of LGBTQ and
amounted to a violation of the Printing
Presses and Publications Act 1984, the
BY TARANI PALANI company pointed out that the watches
theedgemalaysia.com have never been gazetted as prohibited
publication that necessitated the seizures.
The company claimed that 172 watch- The company said that without any
es had been seized by the authorities in such gazette, such seizures are illegal. It
16 different locations nationwide between added that the watches are not a form of
May 13 and 15, 2023. publication, and neither are they a type of
The total retail value of the watches “prohibited item”.
amounted to RM64,795. It further claimed that the seizure no-
The watches were part of the compa- tices did not adequately inform them on
ny’s “Pride collection” in reference to the the grounds or basis for the seizure, and
international human rights movement held that the seizures were illegal, irrational and
in June which celebrates the lesbian, gay, inconsistent.
 F R I D A Y J U LY 2 1 , 2 0 2 3
(July 20): China’s government will retal-
iate if the Biden administration imposes
new limits on technology and capital that
can flow to the nation, Beijing’s envoy in
Washington said.
Xie Feng, the nation’s new ambassador
to the US, said that while China doesn’t
want a trade or technology war, its lead-
ers won’t sit on their hands in the face of
US actions such as a planned screening
mechanism for investment in key Chinese
industries. He didn’t detail what actions
China would take.
“The Chinese government cannot sim-
ply sit idly by,” Xie said at the Aspen Se-
curity Forum on Wednesday (July 19).
“There’s a Chinese saying: ‘We will not
make provocations, but we will not flinch
from provocations.’ So China definitely will
make our response.”
US officials are seeking to wrap up
a proposal by the end of August for a
long-delayed program to screen and pos-
sibly prohibit investment in China’s sem-
iconductor, quantum-computing and ar-
BANGKOK (July 20): Thailand’s parlia-
ment will hold another vote for a prime
minister next week which cannot include
the leader of election winners Move For-
ward, a deputy speaker said on Thurs-
day (July 20), after his re-nomination was
blocked.
Parliament’s move to deny Pita Limjare-
onrat after a marathon debate on his eligi-
bility on Wednesday triggered angry street
protests, as a post-election crisis deepens
two months after his party trounced mili-
tary-backed rivals in an election.
“A candidate can only be nominated
once in each parliamentary session,” Depu-
ty House Speaker Pichet Chuamuangphan
told Reuters on Thursday.
The US-educated Pita, 42, has faced
tough resistance from conservative and
royalist forces that clash with the party’s
anti-establishment policies.
On Wednesday, parliament voted to
block his second bid for the premiership
and the Constitutional Court suspended
him as lawmaker as it investigates a case
against him over allegations that he vio-
lated election law for holding shares in a
media company. Pita denies breaking elec-
tion rules.
Legislative and judicial actions against
him have drawn anger from his supporters.
“If we have elections and this is all we
get, why don’t you just choose it yourself,”
a protestor said late on Wednesday drawing
applause from a crowd gathered in central
Bangkok wearing black.
A Twitter hashtag from the protest was
used at least two million times.
16 THEEDGE CEO MORNING BRIEF
W O R L D
China will
retaliate if US
puts new limits
on investment,
envoy says
BY ERIC MARTIN
Bloomberg
tificial intelligence sectors, according to
people familiar with the plans. Xie’s com-
ments indicate Beijing may not have been
assuaged by assurances from Treasury Sec-
retary JanetYellen, who told Bloomberg Tele-
vision this week that the restrictions would
be “narrowly targeted.”
White House Press Secretary Karine
Jeanne-Pierre told reporters Wednesday that
the Biden administration is working on an
Thailand to hold
another PM vote
next week but
Pita’s bid over
— speaker
BY PANARAT THEPGUMPANAT
& CHAYUT SETBOONSARNG
Reuters
Next week, it is widely
expected that real estate
tycoon and political
newcomer Srettha Thavisin
from the runner-up Pheu
Thai party, part of Pita’s
eight-party alliance, will be
nominated for premier.
Thailand’s main stock index has climbed
about 2.6% since July 14, the day after
Pita was first denied by parliament, while
the baht has strengthened by 1.7% against
the dollar.
Foreign investors bought 15.8 billion
baht (RM2.1 billion) net of Thai shares
and bonds during July 14-19.
executive order on investment in “sensitive
technology, particularly for transactions in
critical sectors that could undermine Amer-
ica’s national security.” But she said “it’s a
complicated process, as I’m sure you un-
derstand, and so we want to make sure that
we get this right, and it takes some time.”
Xie also decried existing US measures
such as the inclusion of hundreds of Chi-
nese companies on the Entity List, which
prevents them from receiving key US tech-
nology exports without the producer ob-
taining a license.
Xie, who arrived in his post in May,
criticised US semiconductor controls as
handicapping China and creating an un-
fair competition.
“This is like restricting the other side to
wear outdated swimwear in a swimming
contest, while you yourself are wearing a
Speedo,” he said. “So this is not fair.”
Read also: China says its ‘priority’ is to
stop Taiwan VP visiting US next month
Next week, it is widely expected that
real estate tycoon and political newcomer
Srettha Thavisin from the runner-up Pheu
Thai party, part of Pita’s eight-party alli-
ance, will be nominated for premier.
Activists are planning more gatherings
and have asked people to wear black to pro-
test what they see as rules stacked against
the election winners.
The military-drafted constitution fa-
vours conservative parties, requiring any
prime ministerial candidate to secure at
least 375 votes from a joint sitting of the
bicameral legislature including the jun-
ta-appointed 249-member senate and an
elected 500-member lower house.
Protesters have called on the senators
to resign and that Pita’s eight-party coali-
tion to stick together and uphold election
promises.
Read also:
Thai students join Pita supporters in
challenging his ouster
Student unions from Thammasat,
Chulalongkorn and Mae Fah Luang
universities penned an open letter, urging
Thai people of all ages to resist those in power
through every means available to them.
Market traders look to Thaksin’s party to
break Thai political jam
“We have to closely watch protests, especially
if the demonstrations turn violent,” said
Adisak Phupiphathirungul, an analyst at
Thanachart Securities.
 F R I D A Y J U LY 2 1 , 2 0 2 3
(July 20):Wheat prices continued to soar as
threats surrounding grains trade in the Black
Sea escalated, with both Ukraine and Russia
warning that ships headed to each other’s
ports could be considered military targets.
Ukraine issued a tit-for-tat response to
an earlier warning from Moscow, after US
intelligence alerted that Russia had laid ex-
plosives at Ukrainian ports.The Black Sea is
a key exit route for agricultural commodities
from both countries, and the threats raise
the risk of global food trade facing mounting
obstacles and pushing up prices.
Wheat futures have surged over 11% in
the past three days, with Russia earlier this
week ending the Ukraine grain deal. That
had helped to keep trade flowing for a time
and marked a rare example of Russian co-
operation during its war. A breakdown of
the trade route will force supplies to world
markets through narrower and more cum-
bersome avenues.
In the days since its withdrawal from the
accord, which was initially agreed a year ago,
Russia has repeatedly targeted Ukraine’s ag-
riculture infrastructure — shelling ports and
damaging crop terminals. Ukraine’s larg-
est sunflower oil producer, Kernel SA, said
damage at one of its facilities could take at
least a year to repair.
Targeting such infrastructure “marks
a new phase in the conflict,” according to
Paris-based adviser Agritel. On top of that,
export capacity is being shut off at the same
time as many of Ukraine’s crops are com-
ing to harvest.
All ships using the Black Sea corridor
had departed Ukraine before the grain deal
came to a close. The last vessel — the TQ
(July 20): India, the world’s biggest rice
exporter, banned shipments of non-bas-
mati white rice to maintain domestic prices
at comfortable levels ahead of the general
election due in early 2024.
The government halted overseas sales of
the grain with immediate effect, according
to a notification by the Directorate General
of Foreign Trade, confirming a Bloomberg
report published on July 13. Shipments
will be allowed on the basis of permission
granted by the Indian government to oth-
er countries to meet their food security
needs and based on request of their gov-
ernments, it said.
Although the move could soften domes-
tic prices of the staple, global costs could
advance further at a time when a return
of the El Nino weather pattern is already
raising concerns about crop damages.
The latest move by the South Asian na-
tion, which has already imposed restric-
tions on wheat and sugar exports, would
affect a large portion of India’s rice ship-
17 THEEDGE CEO MORNING BRIEF
W O R L D
Wheat soars as
Ukraine and
Russia threaten
ships, roiling
trade
BY MEGAN DURISIN & KEIRA WRIGHT
Bloomberg
Samsun — cleared its outbound inspection
on Monday in Istanbul.The Black Sea ports
are a vital artery for Ukraine’s crop sales
abroad, previously accounting for the bulk
of its shipments.
The shutdown — and the new threats
to shipping — will heighten the need for
alternative routes to get Ukrainian crops
to market. The nation has increased reli-
ance on its Danube River ports and rail
and road routes via the European Union
throughout the war.
India bans
non-basmati rice
exports to control
local prices
BY PRATIK PARIJA & SIDDHARTHA SINGH
Bloomberg
ments. The grain is a staple for about half
of the world’s population, with Asia con-
suming about 90% of global supply.
India, which accounts for about 40% of
the global rice trade, banned shipments of
broken rice last year and imposed a 20%
duty on exports of white and brown rice
after Russia’s invasion of Ukraine sent
prices of food staples like wheat and corn
soaring. The nation supplies rice to more
than 100 countries.
Some of Ukraine’s eastern Europe-
an neighbours have pledged to help with
transit shipments of its grain through their
territories to countries elsewhere. However,
the group which includes Poland, Bulgaria,
Hungary, Slovakia and Romania insists it
wants to keep restrictions on domestic sales
of those goods, after local farmers protest-
ed declining prices when Ukrainian crops
initially flooded their markets.
The grains rally is sparking renewed fears
of food inflation. Prices had, until recently,
been moderating, due in part to the Black
Sea accord. But the costs of many prod-
ucts made from wheat, such as flour and
breakfast cereal, have continued to climb.
Grain supply risks may raise costs for food
manufacturers once again.
“We are working with all partners inter-
nationally to make sure that the grain won’t
rot in the silos in Ukraine in the coming
weeks, but get to those people in the world
who desperately need it,” German Foreign
Minister Annalena Baerbock said to report-
ers before a European Union meeting of
foreign ministers in Brussels.
Other prices:
Wheat futures for September delivery
rose 0.8% to US$7.3325 a bushel as of
8.39am in Chicago, touching the highest
for a most-active contract in more than
three weeks.
Corn and soybeans both traded slight-
ly lower.
Read also: Asian wheat buyers to seek alter-
native supplies after attacks on Ukraine ports
India is grappling with high prices of grains,
fruits and vegetables. Retail rice prices in Delhi
have climbed about 15% this year while the
average nationwide price has gained more than
8%, according to data from the food minis-
try. Prices of tomatoes in some areas of Delhi
have surged more than five-fold since the start
of 2023 as heavy rains in several areas have
damaged crops and affected truck movements.
 F R I D A Y J U LY 2 1 , 2 0 2 3
Xi’s private-sector propaganda push
runs into wall of scepticism
(July 20): China’s latest pledges to rebuild
a shattered private sector fell flat with in-
vestors, underscoring the damage two
years of crackdowns and pandemic con-
trols have had on confidence in the world’s
second-largest economy.
The Communist Party and the gov-
ernment issued a rare joint statement late
Wednesday, with 31 measures to improve
conditions for businesses, including pledges
to treat private companies the same as state-
owned enterprises and to consult more with
entrepreneurs before drafting policies.
While the move by President Xi
Jingping’s government won backing
from Tencent Holdings Ltd’s billionaire
co-founder Pony Ma and other Chinese
businesses, it was greeted with scepticism
by Chinese markets looking for more con-
crete measures to revive sentiment. With
Beijing’s official growth target of around
5% now at risk, urgent stimulus measures
are high on investors’ wish lists.
“It’s more of a principal framework, in-
vestors are hoping for more specific stimu-
lus measures such as loosening in property
policies and more fiscal spending,” said
Alan Li, chief investment officer at Atta
Capital Ltd. Any lift to financial markets
from Beijing’s signals will likely be short-
lived, he said.
Hong Kong’s Hang Seng Tech Index —
which includes heavyweights like Alibaba
Group Holding Ltd and Tencent — traded
about 0.3% lower around midday, erasing
earlier gains of as much as 1.7%. A gauge
of Chinese stocks traded in Hong Kong
pared earlier advances of as much as 1.7%
to trade at 0.4% just before midday.
Businesses have been bruised by years of
tight coronavirus restrictions, which ended
suddenly in December, as well as unpre-
dictable regulations in sectors like technol-
ogy and education. While Beijing appears
ready to lift at least some of the plethora of
private-sector restrictions, it will be hard
to repair investor confidence and recoup
corporate losses.
Once-dominant private sector cham-
pions like Ant and Alibaba have shrunk
drastically after years of constant scruti-
ny and business curbs, with Alibaba itself
preparing to break into six separate units.
The almost two-year crackdown on tech
firms appears to now be at a close, with
Beijing imposing fines of over US$1 bil-
lion (RM4.56 billion) on Ant and Tencent
this month. Underscoring the sector’s wish
to move on from its crisis, Tencent’s Ma
18 THEEDGE CEO MORNING BRIEF
W O R L D
Bloomberg
The public pledges of
support from billionaires
on Thursday belie the
extent to which most
entrepreneurs have
retreated from the
day-to-day running of
their empires and shied
away from pursuing
growth, fearful of
drawing Beijing’s gaze.
penned a rare opinion article in state me-
dia late on Wednesday echoing Beijing’s
statements on the importance of the pri-
vate sector.
Other Chinese business executives, like
Li Shufu, the billionaire founder of Zhe-
jiang Geely Holding Group Co, and Zong
Qinghou, the chairman of leading beverage
company Hanzhou Wahaha Group Co, also
backed Beijing’s pledges.
The public pledges of support from bil-
lionaires on Thursday belie the extent to
which most entrepreneurs have retreated
from the day-to-day running of their em-
pires and shied away from pursuing growth,
fearful of drawing Beijing’s gaze.
Li Xuetong, a fund manager at Shen-
zhen Enjoy Equity Investment Fund Man-
agement Co, said while Beijing’s signals
should ease fears that the government was
becoming more tolerant to slower economic
growth, the move is unlikely to result in a
quick rebound in prospects.
“This is just one step in an accumu-
lation of factors to turn around expecta-
tions for the business environment,” said
Li. “It isn’t realistic for one document to
be a game changer.”
Weakening growth
China’s weakening economic recovery this
year has sent a chill through global markets,
with Beijing’s limited steps so far — ranging
from lower interest rates, easier access to
credit and a series of measures to kickstart
the moribund housing market — doing lit-
tle to bolster growth.
Businesses are still waiting for signals
from Xi’s new economic team that the pol-
icy environment will be more transparent
and predictable. While Xi has repeatedly
insisted that economic development is the
Communist Party’s “top priority”, his gov-
ernment has clearly made protecting na-
tional security a central focus.
Beijing’s recent clampdown on business
consultancies like Bain & Company caused
unease in global markets, around the same
time that the government made revisions to
a broadly worded anti-espionage law. Since
then, though, officials have had a series of
meetings with high-profile executives to
repair the damage to business sentiment.
“While removing existing business ob-
stacles would be beneficial to business con-
fidence, taking concrete measures to stim-
ulate consumer confidence and establish a
clearer regulatory framework would be even
more critical,” said Maximilian Butek, chief
representative at the Delegation of German
Industry & Commerce in Shanghai. “Ul-
timately, restoring trust in a predictable
business environment hinges on concrete
actions rather than words.”
Business challenges
Private firms still face a number of chal-
lenges, including higher financing costs and
lack of access to bank loans compared with
state-owned counterparts. Many are also
constrained because of unpaid bills from
supplying services and products to govern-
ment-related entities, as local authorities’
finances deteriorated.
A number of economists have called
on the government to adopt more de-
mand-side stimulus measures, including
handing out consumption vouchers or cash
subsidies to residents — something officials
have been reluctant to do. Instead, Beijing
has offered a vague guideline to boost con-
sumption of home appliances and furniture,
and extended a tax break for new energy
vehicles purchases through 2027.
Read the full story
Read also:
Chinese professor says youth jobless rate
might have hit 46.5%
An unusually public claim by a Chinese
professor that the country’s youth
unemployment rate might have hit close to
50% in March has revived a debate about
official statistics and focused attention on a
weak labour market.
 f r i d a y j u ly 2 1 , 2 0 2 3
(July 20): One of China’s most closely watched
property firms, Dalian Wanda Group, rallied
by a record Thursday (July 20) in credit mar-
kets as a key unit told some creditors it’s fi-
nalising an asset disposal to help pay down a
dollar bond due in just days.
Representatives of Dalian Wanda Commer-
cial Management Group Co told the creditors
that the firm expects to complete the asset
disposal as early as this week and plans to
use the proceeds to repay its US$400 million
(RM1.8 billion) bond due July 23, people in-
volved in the private conversations said. The
representatives wouldn’t specify what the asset
is, according to the people, who asked not to
be identified discussing private matters.
Wanda is among the few Chinese real estate
conglomerates to stay afloat even as peers suc-
cumbed to an industry-wide debt crisis in re-
cent years. But concerns have swirled in recent
months that it would struggle to meet upcoming
debt payments, after aWanda Commercial unit’s
third application for a Hong Kong stock listing
lapsed. If it doesn’t go public this year, the con-
glomerate may have to repay the mall unit’s other
investors about 30 billion yuan (RM19 billion).
Wanda’s bonds swung by records this week,
which spilled over into the broader market for
Chinese junk notes. The moves started after
people familiar with the matter said on Mon-
day that Wanda Commercial had told creditors
it had a shortfall of at least US$200 million
for repayment of the note. That news dragged
(July 20): Chinese authorities are consider-
ing easing home buying restrictions in the
nation’s biggest cities, potentially removing
a hurdle that has curbed demand in Bei-
jing and Shanghai for years, according to
people familiar with the matter.
Regulators are weighing scrapping rules
that disqualify people who’ve ever had a
mortgage — even if fully repaid — from
being considered a first-time homebuyer
in major cities, said the people, asking not
to be identified discussing a private matter.
Currently homebuyers with a mortgage
record who don’t own a property are still
subject to the higher down-payment and
more restrictive borrowing limits applied
to those buying a second home.
Some state banks have submitted rel-
evant mortgage data and feedback to the
regulators over the past months, one of the
people said.The plans are under discussion
and have yet to be approved, they added.
China’s existing policies have failed to
sustain a rebound in the property market
as price slumps extend across the nation,
putting the government’s 5% growth tar-
get at risk. Gross domestic product figures
released Monday (July 17) showed the re-
covery lost momentum in the second quar-
ter, intensifying calls for more stimulus.
19 TheEdge CEO morning brief
w o r l d
Wanda says it’s
finalising asset
disposal, bonds
jump by record
by Jackie Cai & Dorothy Ma
Bloomberg
the July note as low as 53 cents by Wednes-
day. But on Thursday, it rallied a record 29
cents to about 90 cents. An onshore Wanda
note rose 32%, its most ever, and the gains
triggered two trading halts.
The representatives of Wanda Commer-
cial told the creditors that the chances of the
firm repaying the dollar bond had become
relatively high, the people said. That marked
a shift from Wednesday, when the represent-
atives had told them there was relatively high
uncertainty. There is no grace period to pay
the principal, according to bond documents.
Wanda Group didn’t comment when
reached by Bloomberg News to ask about the
matter.
China’s developer-dominated high-yield
market was generally mixed Thursday follow-
ing one of its worst three-day stretches this
year. Bond investors appeared largely unmoved
China mulls
mortgage easing
to spur home
purchases
Bloomberg
Policymakers have so far been cautious
about rolling out broad support, instead
relying on targeted measures to boost
household spending such as extending
tax exemptions on electric car purchases.
The government also took a step toward
supporting the ailing property market by
extending loan relief for developers this
month, adding to a slew of measures in a
sweeping 16-point rescue package last year.
While many local governments in small-
er cities have eased or even reversed home
buying restrictions over the past year, the
official stance toward mega cities has re-
mained unchanged.
The central bank and the housing
ministry didn’t immediately respond to
requests seeking comment.
by authorities considering the easing of home
buying restrictions in the nation’s biggest cit-
ies. New-home sales weakened anew in June
as existing policies have proved unable thus
far to fuel a sustained recovery.
“If the government really dials back the
tough stance against property speculation, I
think the market would also be concerned of
the consistency of policy making and wheth-
er the top authorities have a comprehensive
long-term plan for the property sector,” said
CreditSights senior analyst Zerlina Zeng.
One of the few survivors in China’s offshore
high-yield market, Wanda has so far avoided
defaulting on public dollar debt. But there’s
been a surge in delinquencies by Chinese is-
suers since the start of 2022, especially among
property firms in the wake of that sector’s li-
quidity crunch.
S&P Global Ratings on Thursday down-
graded Wanda Commercial for the second
time this week because of debt-nonpayment
risk. Based on its understanding, the ratings
firm said Wanda Commercial has only about
US$200 million in accessible offshore cash.
In addition to the July 23 maturity, there’s
a note with US$22 million of interest whose
initial payment deadline is Thursday.
S&P’s new grade on Wanda Commercial
is CCC, and the firm remains on watch for
possible further downgrade. Peers Moody’s
Investors Service and Fitch Ratings cut their
ratings on the mall operator earlier this month.
Zou Lan, head of the monetary policy
department at the People’s Bank of Chi-
na, said on Friday that real estate policies
will be “tailored” to cities, and the policies
that were rolled out when the market was
overheated can be “optimized marginally.”
For years, China has sought to suppress
real estate demand in the biggest cities by
treating buyers with previous mortgages
as second-time purchasers, substantially
raising down payment thresholds and in-
creasing borrowing costs. In the capital
of Beijing, a second-time buyer needs to
come up with a down payment of as much
as 80% of the property’s value. The down
payment is just 40% for first-time buyers.
The change, if approved, will allow buy-
ers who have sold their properties to en-
joy the lower down payment despite their
mortgage records.
More investments
The government also plans to shore up in-
vestments through urban redevelopment
projects, aimed at refurbishing run-down
areas.
China’s housing ministry called for
more redevelopment projects this week,
saying the focus would be on building el-
evators in run-down apartments.
 F R I D A Y J U LY 2 1 , 2 0 2 3
Evergrande creditors seized
US$1.6 bil tower they can’t sell
(July 20): Nothing symbolises the demise
of China Evergrande Group like the Hong
Kong tower that it bought for a record
US$1.6 billion (RM7.3 billion). Once a
jewel in the developer’s crown, creditors
are still trying to sell the building almost a
year after seizing it.
Refurbishments and a name change
to steer clear of the disgraced defaulter
have failed to convince buyers at a time
when Hong Kong’s office market is going
through its worst downturn in years.
Evergrande’s financial woes even started
to affect operations at the building, which
sits in Hong Kong’s busy Wan Chai district.
Three of its 11 elevators weren’t running
because the developer had failed to pay the
contractor, said Godfrey Cheng, deputy
senior director at Savills (Hong Kong), an
agent for the receivers. Maintenance work
has since begun, Cheng said.
That hasn’t been enough to boost the
value of the tower, with the low end esti-
mated at almost US$1 billion below what
Evergrande paid for it in 2015, suggest-
ing severe losses for the company and the
lenders behind the loans that it backed.
It’s also a blow to other creditors who are
waiting for recovery from a debt restruc-
turing plan, which the developer is now
trying to expedite after this week revealing
losses totaling US$81 billion in long-de-
layed results.
The impasse signals a harsh reality
for secured lenders of China’s defaulted
developers: trophy assets in Hong Kong
that were purchased at record prices may
not attract acceptable bids even at a steep
discount, complicating efforts to recover
debts. What’s standing in their way is a
tug of war with bidders in a commercial
real estate market that is now seeing re-
cord vacancies.
There have been “quite a few serious
inquiries” for distressed assets under re-
ceivership, including the former China
Evergrande Centre, said Tiffany Wong,
managing director with Alvarez & Mar-
sal’s restructuring practice in Hong Kong,
which acts as the receiver of the tower. But
few deals were reached because of “a wide
gap in expectations of the fair value of the
property,” she said in an interview.
Wong declined to share further infor-
mation about the status of efforts to sell
the Evergrande building, when asked by
Bloomberg News.
Savills has done roadshows in Beijing
and Shanghai to seek buyers of the 26-floor
20 THEEDGE CEO MORNING BRIEF
W O R L D
BY PEARL LIU & DOROTHY MA
Bloomberg
The impasse signals a
harsh reality for secured
lenders of China’s
defaulted developers:
trophy assets in Hong
Kong that were purchased
at record prices may not
attract acceptable bids
even at a steep discount,
complicating efforts to
recover debts. What’s
standing in their way is a
tug of war with bidders
in a commercial real
estate market that is now
seeing record vacancies.
BLOOMBERG
tower, now named the YF Life Centre,
along with other assets. “More Mandarin
speakers came to the city to check out the
building after the border opened, which
is a good sign at least,” Cheng said. “But
no agreement was reached.”
Efforts to sell the building are ongoing.
Evergrande, the building’s agent, the re-
ceiver and creditor China Citic Bank Inter-
national Ltd didn’t provide valuations for
the tower to Bloomberg News. But several
surveyors who specialise in the area gave
estimates that ranged from about HK$5.2
billion to HK$7 billion. The surveyors
asked not to be identified because their
estimates are private.
That’s less than the HK$7.6 billion in
loans that the property was used as secu-
rity for by lenders including China Citic
Bank International.
Evergrande and China Citic Bank In-
ternational didn’t respond to requests for
comment.
Despite the discount, a failure to make
a deal with some deep-pocketed buyers —
including CK Asset Holdings Ltd, which
submitted a bid to a tender sale in July
2022 — further underscores the dimmed
market outlook.
Reluctant buyers
The struggle to offload assets isn’t just in
the financial hub. Another distressed build-
er, Shimao Group Holdings Ltd, recently
failed to find a buyer for a US$1.8 billion
project in Shenzhen, despite a hefty price
cut. But it’s the properties in Hong Kong
that may be of greater concern to creditors
because they have historically been regard-
ed as easier to sell, and at a high price.
“As a potential buyer, snapping up a
building from the receiver is not just a mat-
ter of spending a huge chunk of money in
the purchase,” said Kevin Song, manag-
ing director of restructuring at Kroll LLC.
“You must consider the further investment
required after the purchase and steps to
ensuring the future income stream.”
Hong Kong’s commercial property mar-
ket is at its worst in almost a decade. Office
values have declined about 35% from their
peak in 2018 to the lowest since 2016, ac-
cording to Colliers International Group Inc.
Western firms’ cost-cutting efforts and Chi-
nese companies’ slower-than-expected return
to the city have limited demand for offices.
The city’s overall grade A vacancy rate
was almost 15% in May, more than three
times higher than in 2019, Colliers data
show. With interest rates rising along with
supply, investors have little incentive to bet
on Hong Kong’s office blocks.
A recent deal offers a glimpse into what
distressed sales can get. The Goldin Fi-
nancial Global Centre sold for HK$5.6
billion to investment firms after two years
of trying, way shy of its estimated value of
as much as HK$16.5 billion.
Debt recovery from other distressed
Chinese companies also hinges on of-
floading the buildings they splurged on
just a few years ago. Coming in August is
the close of a tender offer for commercial
building Cheung Kei Center, now also
in receivership. It was seized over debt
owed by property tycoon Chen Hongtian.
Shimao chairman Hui Wing Mau has also
put up two floors of The Center for sale.
No buyer has emerged yet.
 F R I D A Y J U LY 2 1 , 2 0 2 3
TSMC cuts 2023 outlook ahead
of delay to marquee US project
BY DEBBY WU
Bloomberg
(July 20): Taiwan Semiconductor Man-
ufacturing Co cut its annual outlook for
revenue and postponed the start of pro-
duction at its signature Arizona project
to 2025, twin setbacks for a chipmaking
linchpin struggling with geopolitical ten-
sions and a deep market slump.
TSMC’s surprise cut in 2023 revenue
projections sent a warning to investors
that the global electronics slump may
persist for some time despite a boom in
AI development. And the delay in the
US — a consequence of both a lack of
skilled American workers and ballooning
costs — underscores the difficulties in
making chips there despite Washington’s
insistence to reduce a global reliance on
Asian facilities.
The main chipmaker for Apple Inc
and Nvidia Corp projected a 10% fall
in sales this year, versus previous guid-
ance for a single-digit decline. Execu-
tives also warned investors to temper
their expectations for a boom in chips
for training AI models, saying it was un-
certain whether the surge in demand in
the wake of ChatGPT was long-term or
sustainable. Shares in chip firms includ-
ing ASML Holding NV, one of TSMC’s
primary gear suppliers, slid in Europe.
“The short-term frenzy about AI de-
mand definitely cannot be extrapolated
for the long term,” chairman Mark Liu
told analysts on a conference call. “Neither
can we predict for next year how the sud-
den demand will continue or flatten out.”
TSMC delivered the outlook after
posting its first quarterly profit decline
in four years, underscoring the extent
of a global slide in smartphone and PC
demand. It reported a 23% slide in net
income to NT$181.8 billion (RM26.7
billion). Executives said capital intensity
— a measure of the pace at which TSMC
buys or invests in capital equipment —
to slow in coming years.
Executives on Thursday (July 20) said
they were also pushing back the antici-
pated start of output from its new Arizo-
na plant to 2025. President Joe Biden’s
administration has made development of
domestic chip production a top strategic
priority, backed by subsidies in the Chips
and Science Act that may top US$50 bil-
lion (RM228 billion). As the US clashes
with China, American politicians have
21 THEEDGE CEO MORNING BRIEF
W O R L D
been concerned about the vulnerability
of Taiwan, which Beijing has claimed as
its own territory.
To mitigate concerns from customers
over geopolitical uncertainties in the Tai-
wan Strait, TSMC has been diversifying
its manufacturing footprint. It is investing
US$40 billion to create two fabs in Ari-
zona and constructing a US$8.6 billion
facility in Japan with financial support
from the government. The company re-
mains in discussions with Tokyo over sub-
sidies for a second facility, which might
be located alongside its current plant in
Kumamoto.
The hiccups in Arizona however call
into question whether TSMC can make
chips abroad as efficiently as back home.
“We are working on improving this by
sending skilled technical workers from
Taiwan to the US,” Liu said.
Investors are still betting on TSMC
becoming a heavyweight in the global race
to develop next-generation AI.
Top customer Nvidia’s chips are essen-
tial to ChatGPT, autonomous driving and
a new generation of AI products. The US
firm’s valuation briefly surpassed US$1
trillion this year thanks to Wall Street’s
obsession with generative AI, propping
up the fortunes of TSMC and other elec-
tronics firms that supply the infrastruc-
ture needed to train AI models.
“Although its lower revenue guidance
and its Arizona fab push-out were some of
the negatives, we think earnings have gen-
erally bottomed as the firm looks ready
to ramp up 3nm node lines aggressive-
ly,” said Amir Anvarzadeh at Asymmet-
ric Advisors. “Given that TSMC is the
only viable producer of AI chips as well
as having the right packaging technolo-
gy, we see huge upside in both revenues
and earnings, especially from next term.”
More immediately, the iPhone chip-
maker is struggling to sustain margins
and growth in its smartphone and con-
sumer-oriented business, which has
shrunk alongside a global post-Covid
economic downturn.
Signs are mixed as to when that slump
might end. TSMC projected sales of
US$16.7 billion to US$17.5 billion this
quarter, weaker versus expectations. Ex-
ecutives said the Chinese post-Covid eco-
nomic recovery has been slower and sof-
ten than anticipated. And the company
reaffirmed that 2023 capital expenditure
should come in toward the lower end of
a previously forecast range of US$32 bil-
lion to US$36 billion.
Samsung Electronics Co this month
reported its worst decline in quarter-
ly revenue since at least 2009. Global
smartphone shipments plunged 11% in
the April to June period, the sixth suc-
cessive quarterly decline, research firm
Canalys estimates.
But backlogs of unsold phones are
shrinking. And this week, ASML revealed
orders rose in the second quarter after
demand for its chip-making machines
picked up.
“The smartphone market is sending
early signals of recovery,” said Le Xuan
Chiew, an analyst at Canalys. “Smart-
phone inventory has begun to clear up as
smartphone vendors prioritised cutting
inventory of old models to make room
for new launches.”
 F R I D A Y J U LY 2 1 , 2 0 2 3
BYD, Li Auto
smash foreign
rivals during
price war
BY CHARLOTTE YANG
Bloomberg
(July 20): China’s electric-vehicle makers
are defying an unprecedented price war with
their share gains trouncing foreign rivals, and
analysts say the rally may run further thanks
to a stronger pipeline of new products.
Li Auto Inc delivered more than 30,000
units for the first time in June, a 150% in-
crease from a year earlier. The shares have
risen 88% in Hong Kong this year, with bears
positioned near the lowest level since Septem-
ber, according to IHS Markit data.The firm
has held off in cutting prices for its models.
There’s also BYD Co, the EV leader that
overtook Volkswagen as the best-selling car
brand in China in the first quarter, which
has seen shares jump 39% this year in Hong
Kong. That’s more than double the global
industry gauge’s 17% rise. BYD has also seen
growing market share, chipping away at Te-
sla Inc’s portion in recent years, according
to data from the Passenger Car Association.
The strong sales underscore robust de-
mand for local clean vehicles despite China’s
lacklustre consumer spending, thanks to fa-
vourable government policies, strong prod-
uct roll-outs and attractive pricing. There’s
further upside as analysts say the recent de-
mand recovery may boost margins in the
second half.
“Valuations are not too rich yet so the rally
has legs, so long as the companies can de-
liver on their monthly numbers,” said Kevin
Net, head of Asian equities at LA Banque
Postale Asset Management, adding that he’s
“less concerned now” compared to earlier
this year when Tesla kicked off its aggressive
pricing strategy.
BYD is trading at 23.5 times forward
earnings, about one-third of its average over
the past three years. Meanwhile,Tesla is trad-
REUTERS
22 THEEDGE CEO MORNING BRIEF
W O R L D
ing at about 70 times, its highest level since
May 2022.
A number of large banks and brokers
have turned more favorable on the sector.
HSBC Holdings Plc. forecasts that China
new energy vehicle sales may reach 8.2
million units this year, a 10% upgrade
from its earlier forecasts. “As prices sta-
bilise, we see a stronger demand recov-
ery, as consumers who have been waiting
for a better price are more likely to buy
a new car,” analyst Yuqian Ding wrote in
a report.
Sanford C Bernstein is also turning
more positive on China’s auto cycle af-
ter seeing improving retail demand. The
brokerage holds a cautiously optimistic
view, expecting consumer confidence and
credit impulse to support auto demand
in the coming months.
There are some risks, however. The
summer months tend to be the softest in
terms of demand, which could hurt the
recent momentum for Chinese shares.
There are also signs of overheating, with
Li Auto and XPeng Inc nearing techni-
cally overbought levels. Bearish bets in
particular for XPeng are hovering near
a record high in Hong Kong after nearly
doubling in its share price recently.
Foreign players have also had some
strong share rallies, with Tesla gaining
more than 136% since the start of the
year, in part due to an artificial intelli-
gence boom.
The next focus will be on the outlook
for margin trajectory and delivery mo-
mentum of new models announced dur-
ing second-quarter earnings released next
month, Morgan Stanley analysts including
Cindy Huang wrote in a note.
Early indications show things are hold-
ing strong. BYD reported a threefold in-
crease in preliminary earnings for the first
six months and its profit per vehicle may
have risen to 8,000 yuan (RM5,071) in
the second quarter, up from the previous
quarter’s 7,500 yuan, according to Citi-
group Inc’s estimates.
Read also: Chinese automakers sold 75%
of EVs in Southeast Asia in 1Q — study
Tesla price cuts
squeeze its
industry-leading
profits
BY DANA HULL & SEAN O’KANE
Bloomberg
(July 20): Tesla Inc’s profitability shrank in
the second quarter, showing months of price
cuts the electric-vehicle maker implemented
to motivate budget-conscious consumers
have taken a toll.
The Elon Musk-led company onWednes-
day (July 19) reported a gross margin of
18.2% in the quarter, slightly below the
18.8% Wall Street estimated and far lower
than the 25% margin from a year ago.
Musk has said he’s comfortable sacrific-
ing profitability for sales volume, and the
strategy is clearly working. The company
beat both earnings and revenue expectations
in the period and had already announced
record vehicle deliveries. It also said better
days are ahead:Tesla is pouring money into
ramping up output of battery cells, the new
Cybertruck and other large, growth-orient-
ed projects.
“It does make sense to sacrifice margins
in favour of making more vehicles because
we think in the not too distant future they
will have a dramatic valuation increase,”
Musk said.
But investors reacted negatively to weaker
profits. Additionally, Musk said production
in the current quarter “will be a little bit
down” as Tesla performs factory upgrades.
The stock fell 3.6% at 6:19pm in NewYork.
Tesla’s second-quarter profit, excluding
some items, came to 91 cents a share, more
than the 81 cents analysts estimated. Reve-
nue rose 47% to US$24.9 billion (RM113.5
billion), Tesla said. Analysts had expected
the company to generate US$24.5 billion
in sales.
The company didn’t break out its auto-
motive margin, a closely watched gauge of
Tesla’s profitability which was more than
30% at the start of last year. Analysts pegged
the auto margins at 19.2% for the quarter,
excluding the impact of regulatory credits.
In January, Tesla chief financial officer
Zachary Kirkhorn said he was targeting a
20% auto margin for the the year, exclud-
ing regulatory credits. That’s been tough
to maintain amid a broader slowdown in
EV buying and ballooning inventories, and
Kirkhorn walked back the forecast in April.
Read the full story
 F R I D A Y J U LY 2 1 , 2 0 2 3 23 THEEDGE CEO MORNING BRIEF

W O R L D

Ambani’s finance
(July 20): Reliance Industries Ltd’s fi- changes utilised a new method of price
nancial services unit was valued at about discovery for listed companies undergo-

unit valued at
US$20 billion (RM91.2 billion) after a ing mergers and acquisitions as they seek
special session conducted by exchanges to minimise price swings in benchmark

US$20 bil after

to discover its trading value. indexes. Trading in Jio Financial will start
Jio Financial Services Ltd was priced at a later date but authorities are watching

at 261.85 rupees (US$3.19 or RM14.51)
apiece based on the difference between
Reliance’s stock price at Wednesday’s (July
19) close and trading at 10.00am Thursday
in Mumbai following an hour-long special
pre-market session. Reliance, India’s most
valuable company, will now trade on ex-
changes without its financial services unit.
JPMorgan Chase & Co and Axis Securi-
ties had expected Jio Financial to be priced
in the range of 160 to 189 rupees per share.
Avendus Spark estimated the company to
be valued at as much as US$14 billion.
On Wednesday, Reliance Industries said
after the spinoff, each share in Jio Financial
would be equivalent to 4.7% of Reliance’s
closing price that day. This would value
Jio’s stock at 133 rupees apiece.
The spinoff will bring Mukesh Ambani,
one of Asia’s richest men, one step closer to
spinoff
BY CHIRANJIVI CHAKRABORTY
& ASHUTOSH JOSHI
Bloomberg
creating the type of multi-purpose empire
that’s similar to Alibaba Group Holding
Ltd and Tencent Holdings Ltd. Ambani
has big ambitions to gather various seg-
ments of the business — including tele-
coms, financial and e-commerce services
— all within a larger conglomerate.
Reliance’s shares rose as much as 1.7%
to 2,632 rupees on Thursday.
New methodology
This marks the first time that Indian ex-
for any market volatility as Reliance In-
dustries carries about 11% weight in the
Nifty 50 gauge.
“Passive funds have gone big in India
over the last 3 to 4 years, so exchanges had
to come up with rules to avoid any disrup-
tion to index components,” said Abhilash
Pagaria, an analyst with Nuvama Wealth
Management Ltd. “There can’t be a better
way of handling a demerger.”
Pagaria said it may take up to a month
for Jio Financial’s shares to be listed since
the entity will be carved out from one of
India’s biggest companies.
RIL offered one share of Jio Financial
for every share owned by RIL’s investors.
RIL’s stock closed at an all-time high on
Wednesday as investors made a last-minute
attempt to qualify for Jio’s shares.
Ambani surprised investors last year
by announcing the demerger of Reliance
Strategic Investments and Holdings Ltd
and its subsequent listing as Jio Financial
to unlock the value of his oil-to-telecoms
conglomerate.
While analysts have indicated that the
financial unit will be valued at one time
price-to-book of trailing 12-month earn-
ings, they expect the company to command
a premium valuation as Reliance details a
strategic roadmap going ahead.
“Even though this entity has little rev-
enue at this point, there is vast potential
for growth, they can expand rapidly,” said
Deven Choksey, managing director at KR
Choksey Shares & Securities Pvt Ltd. He
expects Jio Financial’s assets under man-
agement to grow to US$122 billion and
forecasts revenue of US$12.2 billion for
the company over the next five years.

Alibaba injects
(July 20): Alibaba Group Holding Ltd in- nesses, which include e-commerce, logis-
jected US$845 million into Lazada, its on- tics and the cloud.

US$845 mil into

line retail business in Southeast Asia that’s Alibaba has in the past explored splitting
facing intensifying competition from rivals off Lazada.The unit, bought in stages from

Southeast Asian
such as Sea Ltd and Amazon.com Inc. Rocket Internet SE, is considered one of the
The capital infusion, disclosed in a reg- Chinese firm’s most high-profile interna-

unit Lazada
ulatory filing in Singapore on Wednesday,
brings the total that Alibaba has invested
in the arm to several billion dollars since it
gained control over the business in 2016.
Alibaba and Lazada representatives didn’t
respond to requests for comment.
Lazada is part of the international on-
line shopping unit that Alibaba is planning
to potentially take public in the US. The
Chinese tech behemoth is splitting into six
parts to spur growth of its various busi-
BY OLIVIA POH & JANE ZHANG
Bloomberg
tional brands. It competes with Amazon and
Sea’s Shopee in Southeast Asian markets,
such as Thailand, Malaysia and Singapore.
In 2022, Alibaba discussed raising at
least US$1 billion for Lazada before call-
ing off negotiations with potential investors
when talks bogged down over its valuation.
It had aimed to secure the funding as a
precursor to a spinoff. Alibaba has since
mothballed the fundraising and injected
additional funds into the company instead.
 F R I D A Y J U LY 2 1 , 2 0 2 3
Singapore bank
startups lift
deposit caps in
sign of opening
BY OLIVIA POH & NATALIE CHOY
Bloomberg
(July 20): Digital bank startups backed
by Grab Holdings Ltd and Sea Ltd have
started accepting larger deposits in Singa-
pore, suggesting the city-state’s regulator
has raised limits previously imposed on
their fintech firms.
GXS Bank, the digibank joint venture of
Grab and Singapore Telecommunications
Ltd, said Wednesday (July 19) that custom-
ers can now each deposit up to S$75,000
(RM259,920) into a savings account. The
limit previously was S$5,000. Sea’s Mar-
iBank, the only other holder of a digital
full bank license in Singapore, also raised
its maximum for individuals to the same
level effective from July 20, according to a
statement sent to Bloomberg News.
The changes signal that the Monetary
Authority of Singapore has raised the de-
posit cap of S$50 million placed on the dig-
ital banks. That would be a boon for their
push to compete with traditional lenders
in the wealthy city-state.
Digital banks backed by the country’s
two biggest tech firms have been pushing
the central bank to lift restrictions that they
see as curbing their lending ability. The
tech companies are expanding to financial
services to fuel growth beyond businesses
such as online retailing and ride-hailing.
Under MAS rules, a digital bank starts
operations as a restricted one before be-
coming a so-called full functioning lender.
Its deposit cap will progressively increase
until there are eventually no limitations.
SINGAPORE (July 20): Southeast Asian
ride-hailing company Grab plans to ac-
quire Singapore’s third-largest taxi op-
erator Trans-Cab, the companies said in
a joint statement on Thursday (July 20).
The acquisition would include a com-
bined taxi and private-hire-vehicle fleet
of more than 2,500 vehicles owned by
Trans-Cab, they said.
The Straits Times newspaper on
Thursday cited sources as saying the deal
was for around S$100 million (RM344.8
million) and was expected to be com-
pleted this week.
24 THEEDGE CEO MORNING BRIEF
W O R L D
The deposit caps are meant to safeguard
consumers’ interests, and there is no fixed
time period for the restrictions to remain
in place.
The MAS doesn’t comment on its su-
pervisory dealings with specific firms, a
spokesperson for the regulator said in an
emailed response to Bloomberg News.The
easing of the restrictions will depend on the
bank’s ability to meet its license application
commitments and the MAS’s supervisory
expectations, the spokesperson said.
An easing of the deposit cap could help
the digibanks to boost scale and approach
break-even. As they applied for their li-
censes, they had to show a path toward
profitability within five years.
Another upstart digibank, Trust Bank,
which doesn’t have deposit limits because
it is backed by traditional lender Standard
Chartered Plc, has raked in more than S$1
billion of deposits.
Grab’s digital bank was set up just un-
der a year ago and had accepted savings
account customers on an invitation-only
basis. It is now removing that condition,
accepting “all eligible individuals” as cus-
tomers, it said in a statement.
Sea’s MariBank started deposit-tak-
ing with its employees last year and has
since expanded to lending to businesses.
While its offerings were previously on an
invite-only basis for users of Sea’s Shopee
marketplace app, MariBank said they will
in the coming weeks be open to individuals
and businesses from “the Sea ecosystem
and beyond,” according to the statement.
BLOOMBERG
Grab to buy
Singapore’s
third-largest taxi
company
Reuters
Singapore says
PM did not hide
information on
minister’s arrest
BY LOW DE WEI
Bloomberg
(July 20): Singapore has issued a
correction order to a blog over the
timeline of events surrounding the
arrest of a transport minister in-
volved in a graft probe, denying
that key politicians concealed in-
formation.
The minister in the prime min-
ister’s office, Indranee Rajah, in-
structed an office for enforcing a
fake-news law to issue the notice
to a blog called ‘Political Sophist-
ry’ after it alleged that Prime Min-
ister Lee Hsien Loong and Deputy
Prime Minister Lawrence Wong had
hidden information about the arrest
“because it was politically embar-
rassing”, according to a statement
Thursday (July 20).
On July 12, Lee said that he has
instructed the minister, S Iswaran,
to go on leave after the city-state’s
anti-corruption agency asked to
open a formal investigation involv-
ing him. The agency subsequently
said last Friday that it had arrested
the minister, as well as property ty-
coon Ong Beng Seng, on July 11.
In their July 12 comments, Lee
and Wong “did not want to deviate
from what CPIB had announced in
its statement since this is related to
operational matters”, the statement
said, referring to the Corrupt Prac-
tices Investigation Bureau by its in-
itials. “It is CPIB’s call to make.”
Grab told Reuters the purchase price
reported by Straits Times was inaccurate
but did not provide further details.
“We see this as a strategic match with
win-win-win outcomes for all,” said Yee
Wee Tang, managing director at Grab
Singapore.
Jasmine Tan, general manager at Trans-
Cab said the deal would ensure their taxi
drivers would remain “competitive”.
Southeast Asia’s leading ride-hailing
and food delivery app announced in June
that it was cutting 1,000 jobs or 11% of
its workforce.
 F R I D A Y J U LY 2 1 , 2 0 2 3 25 THEEDGE CEO MORNING BRIEF

W O R L D

NEWS IN BRIEF

China swallows record flows of
Russian oil and coal as war drags
(July 20): China’s imports of key energy
commodities from Russia surged to
all-time highs last month, highlighting
the growing interdependence of the
two nations as the war in Ukraine drags
on well into its second year. Imports of
thermal and coking coal from Russia
swelled to 10.6 million tons in June, above
the combined total from Indonesia and
Mongolia, the other top shippers to China,
according to customs data on Thursday
(July 20). In the same month, oil flows from
Russia hit 10.5 million tons, up more than
40% on-year. Asia’s largest economy has
proved to be a vital outlet for exports of
both oil and coal for Moscow as western
buyers shun shipments given the conflict.
China has maintained ties with Russian
President Vladimir Putin since he ordered
the assault on Ukraine last year, refusing
to join US-led sanctions. In the coal
trade, Russia has since mid-May boosted
transport along the trans-Baikal railway
that connects to China’s border city
Manzhouli in Inner Mongolia. In addition,
there are plans for another railway route
to the northeast Mohe in Heilongjiang,
according to Chinese consultant GRCoal
Research Institute. — Bloomberg
Read also: China’s June fuel oil imports
at year-to-date high on firm Russian
volumes

BLOOMBERG BLOOMBERG

World’s best airport Changi sees

traffic soar to over 5 mil
(July 20): Singapore’s Changi Airport, ranked
Americans unseat Chinese as top due to respective free trade agreements. the best in the world, saw passenger traffic
foreign homebuyers in Singapore In the second quarter this year, Americans surge close to pre-pandemic levels last month
(July 20): Americans replaced Chinese bought 56 properties, compared with the amid summer travel demand. The airport
as the top foreign buyers of private 51 purchased by Chinese, the OrangeTee & handled 5.12 million passengers in June,
apartments in Singapore, according to Tie data showed. “Americans may continue crossing the five million mark for the first
OrangeTee & Tie. Mainland Chinese have to be among the top foreign buyers in time since January 2020 when the Covid-19
been the largest foreign buyer group in the Singapore” since they are less affected by pandemic hit, according to a Changi Airport
Asian hub since 2016, accelerated by an the increased taxes, while other foreigners Group statement. The figure, amounting to
influx of wealth into the city-state during may either wait to purchase properties 88% of passenger traffic in June 2019, shows
the pandemic. To keep a lid on prices, the after becoming permanent residents or the city-state is well on its way to renewing
government doubled stamp duties for switch to buying non-residential properties, international ties. “Changi has regained more
foreign buyers to 60% — the highest among said Christine Sun, senior vice president of than 80% of its pre-Covid city links,” Lim Ching
major markets — and also raised levies research and analytics at OrangeTee & Tie. Kiat, executive vice-president for air hub and
for buyers of second homes in late April. — Bloomberg cargo development, said in the statement.
Property buyers of certain nationalities The airport is working to build ties to more
including the US, however, are exempt points in China and Southeast Asia in the
from such tax hikes. They’re given the same Read also: Singapore, Lisbon top glob- second half of the year. The rebound comes
stamp duty treatment as Singaporeans al rental growth as foreigners flock there during the peak summer vacation period, as
travellers largely buck worries about inflation
and a global economic slowdown. It’s a similar
Tokyo new condo prices surge 60% to a record in first half story in the US, where passenger counts have
(July 20): Newly built condo prices in Tokyo surged to a record in the first six months of 2023, largely recovered to pre-pandemic levels as
adding fuel to a trend of growth stemming from factors including an influx of luxury units. The
consumers dip into their savings for travel.
average price of a new apartment in central Tokyo jumped 60% to ¥129.6 million (RM4.21
The top markets for the Southeast Asian hub
million) in the January to June period — the highest since record-keeping began, according
were Australia, India, Indonesia, Malaysia and
to the Real Estate Economic Institute, which has been tracking data on condo sales since
1973. “The overall trend of increasing prices will continue, though they won’t become this Thailand in the second quarter. Passenger
extreme,” said Tadashi Matsuda, a senior researcher at the institute. He said the rise in values traffic to and from Northeast Asia rose to 75%
was due to a handful of expensive units in central Tokyo going on sale at the beginning of the of pre-pandemic levels in June, up from about
year. Real estate prices in Japan, historically depressed since a property bubble burst more 50% in January. The momentum may pick up
than 30 years ago, have been rising due to higher labour and raw material costs. Supply has further as the Singapore Formula One Grand
been falling, with the number of new units for sale down 9% in central Tokyo in the first half. Prix kicks off in September and string of sold-
In 2021, new condo unit prices in the Tokyo metropolitan area, which includes prefectures out high-profile concerts featuring performers
around the capital, started to exceed levels unseen since the bubble era. — Bloomberg including Taylor Swift and Coldplay take place
early next year. — Bloomberg
 F R I D A Y J U LY 2 1 , 2 0 2 3
M A R K E T S
CPO RM 4,047.00152.00 OIL US$ 79.590.13 RM/USD 4.5433 RM/SGD 3.4351 RM/AUD 3.1047 RM/GBP 5.8672 RM/EUR 5.0941
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
CLASSITA HOLDINGS BHD 210.7 -0.040 0.19 -47.95 66.9
BUMI ARMADA BHD 116.50 0.025 0.515 7.29 3050.20
UEM SUNRISE BHD 113.90 0.060 0.450 76.47 2,276.3
MST GOLF GROUP BHD 75.78 -0.030 0.780 -0.03 640.3
BAHVEST RESOURCES BHD 64.90 0.015 0.310 1.64 384.3
JAKS RESOURCES BHD 61.60 0.015 0.205 -12.77 469.4
WIDAD GROUP BHD 52.70 0.000 0.420 -2.33 1243.3
KNM GROUP BHD 51.30 -0.010 0.075 50.00 303.3
SARAWAK CONSOLIDATED 51.30 -0.010 0.435 200.00 278.5
MY EG SERVICES BHD 47.80 0.000 0.745 -13.54 5,517.1
JADE MARVEL GROUP BHD 47.60 -0.010 0.195 -37.10 84.8
ADVANCE SYNERGY BHD 42.00 0.000 0.170 -2.86 430.0
XOX BHD 41.70 0.000 0.015 0.00 75.8
MALAYSIAN RESOURCES CORP BHD 37.10 0.005 0.355 20.34 1586
SIME DARBY PROPERTY BHD 32.70 0.010 0.585 30.00 3,978.5
SCOMI ENERGY SERVICES BHD 28.10 0.000 0.005 -90.91 2.3
MALAYSIA BUILDING SOCIETY BHD 27.80 0.035 0.820 33.33 5,880.6
SIAB HOLDINGS BHD 27.30 0.010 0.145 -6.45 71.0
HUBLINE BHD 26.50 0.000 0.040 0.00 171.6
KUMPULAN JETSON BHD 23.90 -0.020 0.260 20.93 69.7
Data as compiled on Jul 20, 2023 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
PEGASUS HEIGHTS BHD 0.010 100.00 527.6 0.00 108.2
GREEN OCEAN CORP BHD 0.015 50.00 201.0 -25.00 31.7
JOE HOLDING BHD 0.020 33.33 501.7 0.00 61.2
TALAM TRANSFORM BHD 0.020 33.33 15,044.5 33.33 85.9
FLEXIDYNAMIC HOLDINGS BHD 0.165 22.22 25.2 -26.67 47.0
LOTUS KFM BHD 0.270 20.00 7,095.7 86.21 275.1
SAUDEE GROUP BHD 0.030 20.00 5,675.1 -33.33 34.2
MQ TECHNOLOGY BHD 0.030 20 3892.4 -40 41.4
TRIVE PROPERTY GROUP BHD 0.070 16.67 172.9 0.00 88.5
DIGISTAR CORP BHD 0.075 15.38 187.4 7.14 33.8
UEM SUNRISE BHD 0.450 15.38 113,910.7 76.47 2276.3
EVERSAFE RUBBER BHD 0.230 15.00 1,276.2 15.00 55.3
BSL CORP BHD 0.040 14.29 360.1 -40.83 77.3
EDUSPEC HOLDINGS BHD 0.040 14.29 110 -60 42.6
FITTERS DIVERSIFIED BHD 0.040 14.29 2486.4 -42.86 93.7
PROGRESSIVE IMPACT CORP BHD 0.085 13.33 5,870.6 -67.31 55.7
MTOUCHE TECHNOLOGY BHD 0.045 12.50 27.7 -10.00 41.7
THETA EDGE BHD 0.720 11.63 3,400.8 5.88 84.9
SMILE-LINK HEALTHCARE GLOBAL 0.195 11.43 10.0 2.63 48.8
REX INDUSTRY BHD 0.110 10.00 180.8 -21.43 72.3
Data as compiled on Jul 20, 2023 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
AJINOMOTO MALAYSIA BHD 15.980 0.280 93.8 22.17 971.6
RAPID SYNERGY BHD 22.380 0.220 37.1 40.23 2,392.3
PETRONAS DAGANGAN BHD 22.400 0.200 177.3 -1.96 22,253.4
UNITED PLANTATIONS BHD 15.900 0.200 203.0 5.93 6,595.1
PETRONAS CHEMICALS GROUP 6.5 0.190 6786.5 -24.42 52,000.0
AURELIUS TECHNOLOGIES BHD 2.600 0.150 3,223.3 42.08 1,024.4
ALLIANZ MALAYSIA BHD 14.360 0.140 31.8 1.41 2,555.6
TA ANN HOLDINGS BHD 3.590 0.140 930.1 -5.03 1,581.3
7-ELEVEN MALAYSIA HOLDINGS 2.130 0.120 311.9 10.36 2,495.8
UOA DEVELOPMENT BHD 1.730 0.120 2,179.2 7.45 4,205.3
IOI CORP BHD 3.990 0.110 2,585.2 -1.48 24,752.8
DUTCH LADY MILK INDUSTRIES 21.800 0.100 25.5 -27.91 1,395.2
CAN-ONE BHD 2.950 0.100 0.2 -12.46 566.9
QUALITY CONCRETE HOLDINGS 1.310 0.090 47.0 -0.76 75.9
FRASER & NEAVE HOLDINGS BHD 25.200 0.080 62.1 16.77 9,242.8
PERUSAHAAN SADUR TIMAH 4.090 0.080 1.7 -6.83 528.0
PENTAMASTER CORP BHD 5.450 0.080 2,170.9 23.02 3,876.7
THETA EDGE BHD 0.720 0.075 3,400.8 5.88 84.9
SFP TECH HOLDINGS BHD 1.170 0.070 19,264.6 95.00 2,808.0
TELEKOM MALAYSIA BHD 4.910 0.070 1,490.6 -9.07 18,765.9
Data as compiled on Jul 20, 2023 Source: Bloomberg
26 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DJIA* 35,061.21 109.28 0.31 INDONESIA 6,864.19 33.99 0.50
S&P 500* 4,565.72 10.74 0.24 JAPAN 32,490.52 -405.51 -1.23
NASDAQ 100* 15,826.35 -15.00 -0.09 KOREA 2,600.23 -8.01 -0.31
FTSE 100* 7,588.20 134.51 1.80 PHILIPPINES 6,613.50 71.59 1.09
AUSTRALIA 7,325.05 1.33 0.02 SINGAPORE 3,274.38 -0.86 -0.03
CHINA 3,169.52 -29.31 -0.92 TAIWAN 17,164.89 48.45 0.28
HONG KONG 18,928.02 -24.29 -0.13 THAILAND 1,521.18 -15.46 -1.01
INDIA 67,571.90 474.46 0.71 VIETNAM 1,172.81 -0.17 -0.01
Data as compiled on Jul 20, 2023 * Based on the previous day’s closing Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
KEY ALLIANCE GROUP BHD 0.005 -50.00 631.9 0.00 18.4
MMAG HOLDINGS BHD 0.01 -33.33 1151 -60.00 24.2
KHEE SAN BHD 0.13 -21.21 0.8 -7.14 17.8
G3 GLOBAL BHD 0.020 -20.00 111.4 -33.33 75.5
CLASSITA HOLDINGS BHD 0.190 -17.39 210662.1 -47.95 66.9
JADI IMAGING HOLDINGS BHD 0.025 -16.67 5256.083 -70.59 26.9
ALAM MARITIM RESOURCES BHD 0.025 -16.67 667.0 0.00 38.3
XOX NETWORKS BHD 0.025 -16.67 529.9 -16.67 28.4
PDZ HOLDINGS BHD 0.030 -14.29 37.5 -25.00 17.4
ZELAN BHD 0.030 -14.29 301.0 -57.14 25.3
SC ESTATE BUILDER BHD 0.035 -12.50 30.9 -22.22 37.6
KANGER INTERNATIONAL BHD 0.035 -12.50 35.1 -12.50 22.7
SAPURA ENERGY BHD 0.035 -12.50 7,650.9 0.00 559.3
KNM GROUP BHD 0.075 -11.76 51,329.7 50.00 303.3
CSH ALLIANCE BHD 0.040 -11.11 1,444.7 0.00 55.3
PERMAJU INDUSTRIES BHD 0.045 -10.00 376.9 0.00 87.4
PENSONIC HOLDINGS BHD 0.455 -9.00 3.0 -5.21 57.2
JF TECHNOLOGY BHD 0.920 -8.91 9,303.5 13.58 852.9
TRI-MODE SYSTEM M BHD 0.355 -7.79 5.0 -8.97 58.9
CITRA NUSA HOLDINGS BHD 0.060 -7.69 195.2 -7.69 43.2
Data as compiled on Jul 20, 2023 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
MALAYSIAN PACIFIC INDUSTRIES 30.500 -0.480 44.3 6.05 6,066.3
VITROX CORP BHD 8.040 -0.260 423.1 5.10 7,600.4
MALAYAN CEMENT BHD 3.050 -0.240 629.8 43.87 3,996.1
CARLSBERG BREWERY MALAYSIA 20.500 -0.180 122.2 -10.40 6,267.8
HUME CEMENT INDUSTRIES BHD 1.580 -0.130 2,137.0 68.09 806.9
UNISEM M BHD 3.410 -0.110 801.2 23.55 5,500.6
BURSA MALAYSIA BHD 6.450 -0.100 378.0 -3.01 5,220.0
KUALA LUMPUR KEPONG BHD 22.700 -0.100 326.4 1.52 24,480.5
PIE INDUSTRIAL BHD 2.830 -0.100 388.8 9.51 1,086.8
KOTRA INDUSTRIES BHD 5.110 -0.090 17.9 -22.58 756.6
D&O GREEN TECHNOLOGIES BHD 4.010 -0.090 779.6 -6.31 4,964.4
JF TECHNOLOGY BHD 0.920 -0.090 9,303.5 13.58 852.9
UWC BHD 3.510 -0.090 1,627.0 -12.69 3,866.9
IMASPRO CORP BHD 5.120 -0.080 378.7 -12.48 409.6
MBM RESOURCES BHD 3.440 -0.080 941.4 9.14 1,344.7
CI HOLDINGS BHD 3.110 -0.080 35.6 6.14 503.8
BRITISH AMERICAN TOBACCO 10.240 -0.080 101.9 -8.73 2923.8
GUAN CHONG BHD 2.130 -0.080 656.5 -11.25 2,501.7
DKSH HOLDINGS MALAYSIA BHD 4.990 -0.070 15.2 16.00 786.7
TECK GUAN PERDANA BHD 1.680 -0.070 20.0 -5.08 67.4
Data as compiled on Jul 20, 2023 Source: Bloomberg