HARTALEGA IS THE EDGE’S BRC COMPANY OF THE YEAR p5

T H U R S DAY, D E C E M B E R 1 0 , 2 0 2 0 w w w. t h e e d g e m a r k e t s. c o m
ISSUE 99/2020

CEOMorningBrief HOME: Saarani to be sworn in as Perak MB today p2

University of Nottingham Malaysia owners weigh exit — sources p8
WORLD: Poland, Hungary say deal close on US$2.2 tril EU stimulus p17

Top Glove makes

the highest
quarterly profit
among Malaysia’s RM2.38
billion

top 10 companies
Report on Page 3.

RM110.06
million

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2019 2020 2021

TOP GLOVE’S QUARTERLY EARNINGS SINCE 1QFY2019

 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
the edge ceo morning brief
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KUALA LUMPUR (Dec 9): Perak Umno
chairman Datuk Saarani Mohamad is the
new menteri besar of Perak.
The Sultan of Perak, Sultan Nazrin
Shah, has given consent for the Kota Tam-
pan assemblyman to be appointed as the
menteri besar, Bernama reported.
It quoted comptroller of the Perak Royal
Household Datuk Abd Rahim Mohamad
as saying that based on Article XVI, Clause
2 (a) of the Perak Constitution, Sultan
Nazrin is of the opinion that Saarani is
capable of gaining the majority support
and confidence of the Perak State Assem-
bly members.
“His Majesty has set the swearing-in
ceremony to be held at 11am tomorrow
at Istana Iskandariah, Kuala Kangsar,” he
said in a statement read out by a member
of the Dewan Negara Perak, Datuk Seri
Mohd Annuar Zaini, in Ipoh today.
Parties within the Perikatan Nasion-
al coalition — Bersatu, BN and PAS —
agreed to Saarani’s nomination as the new
menteri besar following a meeting between
the Bersatu president Tan Sri Muhyiddin
Yassin, BN chairman and Umno president
Datuk Seri Ahmad Zahid Hamidi and PAS
president Datuk Seri Abdul Hadi Awang
— as well their respective secretaries-gen-
eral earlier in the day.
"In the spirit of PN cooperation, the
three parties have agreed to propose YB
Datuk Saarani Mohamad as the new men-
teri besar of Perak to be approved by His
Majesty Sultan of Perak
"Today's meeting also led to a consen-
sus on other appointments within the state
government," read a joint statement signed
by the respective secretaries-general — Da-
tuk Seri Hamzah Zainudin (Bersatu), Tan
Sri Annuar Musa (BN) and Datuk Taki-
yuddin Hassan (PAS).
The three parties also agreed to further
strengthen cooperation within PN in the
Perak state government as well as at the
federal level for the sake of political stability
and the well-being of the people.
The joint statement also stated that dur-
ing the meeting, Ahmad Zahid had apol-
ogised on behalf of the coalition’s assem-
2 THEEDGE CEO MORNING BRIEF
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Selangor, Malaysia
H O M E
Saarani to be
sworn in as Perak
MB today
BY EMIR ZAINUL
theedgemarkets.com
blymen in the state for the “mistake” that
has led to the menteri besar crisis.
Saarani, 59, will be the 14th menteri
besar of Perak, replacing Datuk Seri Ah-
mad Faizal Azumu who resigned, along
with all the State Executive Council mem-
bers, on Dec 5.
Ahmad Faizal, who is Chenderiang as-
semblyman, vacated the menteri besar’s
post after he failed to obtain the majority
support of the state assemblymen in a vote
of confidence moved by BN’s Pengkal-
an Baru assemblyman Datuk Abd Man-
ap Hashim at the State Assembly sitting
last Friday.
publisher + . Ho Kay Tat
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editor - in - chief
. Azam Aris
chief commercial officer . Sharon Teh
chief operating officer . Lim Shiew Yuin
editors . Kathy Fong . Jenny Ng .
Tan Choe Choe . Lam Jian Wyn
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Ahmad Faizal secured only 10 votes,
while 48 voted against him and one ab-
stained.
Following that, Sultan Nazrin sum-
moned leaders and several assemblymen
on Monday to Istana Kinta in Ipoh to find
out who commanded the majority in the
state legislative assembly.
After a whole day of meeting with the
assemblymen, the Perak ruler was not
convinced that any party had sufficient
majority to form a new government.
However, speaking to the press after his
meeting with the sultan, Zahid insisted that
Saarani, had the backing of the majority
of the state lawmakers.
Born on March 13, 1961, Saarani
was Lenggong Umno chief before be-
ing elected as Kota Tampan assembly-
man in 2004.
The Perak state assembly has 59 state
assemblymen with BN (Umno) having the
most seats at 25, followed by DAP (16),
Amanah (5), Bersatu (5), PKR (3) and
PAS (3), while Gerakan and Independent
have one seat each.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0 3 THEEDGE CEO MORNING BRIEF

H O M E

Top Glove makes the highest quarterly

profit among Malaysia’s top 10 companies
BY JUSTIN LIM
theedgemarkets.com
KUALA LUMPUR (Dec 10): Top Glove
Corp Bhd broke multiple records in its first
financial quarter ended Nov 30 (1QFY21).
The group achieved its highest quarterly
net profit of RM2.38 billion, on the back of
record high revenue of RM4.76 billion. Its
earnings per share (EPS) swelled to 29.64
sen from 1.5 sen a year ago.
Given the super profit earned,Top Glove
declared a 16.5 sen dividend per share —
the most generous interim dividend in the
group’s history.This translates into a payout
ratio of 56%.
The glove manufacturer’s earnings
growth has been exponential.
On a year-on-year basis, its net profit
has expanded 20 times from RM111 mil-
lion, while revenue leapt 293.6% from
RM1.209 billion a year ago. On a quar-
terly basis, the group’s net profit rose 84%
from RM1.292 billion, while revenue grew
53% from RM3.11 billion.
However, the record-breaking earnings
didn’t lift Top Glove’s shares yesterday. In-
stead, selling on the stock accelerated in the
afternoon following the release of its latest
quarterly financial results at lunch break.
The sell-off pulled Top Glove’s shares to
RM6.84, down 25 sen or 3.5%.
The drop in share price might be an in-
dicator that the investing fraternity is not
satisfied with the glove maker’s quarterly
earnings, despite the fact that it has managed
to outdo its big cap peers. Its multi-billion
ringgit quarterly profit is the highest among
Malaysia’s top 10 companies.
On top of that, lingering concerns about
production disruption following the closure
of some of its factories recently — due to
a surge of Covid-19 infections among its
workers — might have capped its share price.
However, the group has assured that its
factories would be fully operational in the
next two to three weeks.
According to Bloomberg, the average an-
nual net profit forecast for Top Glove’s fi-
nancial year ending Aug 31, 2021 (FY21)
was RM8.61 billion, or RM1.076 per share
(based on estimates made prior to the re-
lease of the latest quarterly results). This
would translate into a quarterly net profit of
RM2.15 billion.Top Glove’s 1QFY21 earn-
ings have more than met the street estimate.
But when compared with the two high-
est annual profit forecasts — RM11.22
billion by Maybank Investment Bank Bhd
Top Glove’s latest quarterly profit tops Bursa’s 10 biggest firms
Quarter Net profit (RM mil)
Malayan Banking 3QFY20
Public Bank 3QFY20
Tenaga Nasional 3QFY20
Petronas Chemicals Group 3QFY20
TOP GLOVE CORP 1QFY21
Hartalega Holdings 2QFY21
IHH Healthcare 3QFY20
Hong Leong Bank 1QFY21
Maxis 3QFY20
CIMB Group Holdings 3QFY20 194
0 500
Source: Bloomberg
and RM11.05 billion by UOB Kay Hian,
which means a minimum quarterly profit
of RM2.7 billion — Top Glove’s 1QFY21
report card has fallen short of expectations.
On a back-of-the-envelope calculation,
based on the closing price of RM6.85, should
Top Glove be valued at a price-earnings ra-
tio (P/E) of 20 times, it is expected to deliver
an annual earnings per share of 34.25 sen.
Should the P/E multiple be lowered to
12 times, which is closer to the global av-
erage P/E of 10 times for the manufactur-
ing industry in general, the expected annual
EPS would be 57.08 sen, an amount that
Top Glove has achieved by half, given its
1QFY21 EPS of 29.64 sen.
Judging by its 1QFY21, it does not ap-
pear to be an uphill task for the glove mak-
er to meet the average consensus estimate.
However, investors may be looking fur-
ther ahead, beyond FY21, to a post-pan-
demic period.
Top Glove, as stated, achieved a net prof-
1,952
1,392
1,009
471
2,375
544
309
728
365
1000 1500 2000 2500
it margin of 50% in 1QFY21, which begs
the questions: How long will this fat margin
last? What about when demand for rubber
gloves normalise?
The average consensus estimate of Top
Glove’s annual profit for FY22 is substan-
tially lower at RM3.45 billion, or rough-
ly 43.12 sen per share. Based on this, Top
Glove shares are trading at a P/E ratio of
15.9 times, which might appear to be too
high for a post-pandemic valuation.
According to Top Glove, the group’s ro-
bust sales figures in 1QFY21 were due to
the strong demand for gloves in both de-
veloping and emerging markets, owing to
the ongoing global pandemic.
The company said the improved profit
came on the back of higher sales output,
higher factory utilisation levels that ampli-
fied production efficiency, as well as higher
average selling prices (ASPs), in line with
market pricing.
“Even with a vaccine, gloves will still be
needed for testing and administering the
vaccine. Pre-pandemic, global glove demand
was already growing about 10% and is ex-
pected to continue to grow steadily, driven
by strong market fundamentals across all
geographies.
“While demand will stabilise post-pan-
demic, it will not revert to pre-pandemic
levels, owing to increased hygiene awareness.
“The challenging and competitive land-
scape notwithstanding, the company main-
tains an optimistic outlook on prospects.With
the pandemic,Top Glove estimates that glove
demand will keep growing, by 20% per an-
num in 2020, 25% per annum in 2021 and
15% per annum post-pandemic,” said Top
Glove in a press release on its latest results.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Top Glove
expects Klang
factories to be
fully operational
in next two to
three weeks
BY JUSTIN LIM
theedgemarkets.com
KUALA LUMPUR (Dec 9): Following
the temporary shutdown of its 28 facto-
ries in Klang last month, Top Glove Corp
Bhd expects the production lines there to
be fully operational within the next two to
three weeks.
“Seven factories have resumed their
operations since yesterday under stage
one. Hopefully, we can start stage two
with another seven factories to resume
work by this weekend,” said Top Glove
Corp Bhd executive chairman Tan Sri
Dr Lim Wee Chai.
The remaining 14 factories will recom-
mence activities in the following two weeks
in stages three and four, Lim said in a vir-
tual press conference today.
To recap, Top Glove’s Klang factories
have temporarily ceased operations in phas-
es since Nov 16, after a major Covid-19
Average glove prices to be 30% higher in 2Q
KUALA LUMPUR (Dec 10): Top
Glove Corp Bhd expects the average
selling price of its gloves to jump 30%
in the second quarter ending Feb 28,
2021 (2QFY21) from what was recorded
in 1QFY21, boosted by continued strong
demand for the product amid the ongo-
ing pandemic, which has continued to
see spikes of infections around the world.
The higher ASP will also be a result
of higher raw material prices and oper-
ation costs.
During a press briefing yesterday,
group managing director Lee Kim Meow
said Top Glove also plans to shift its pro-
duction focus even more to nitrile gloves,
which delivers better profit margin and
should further boost the group’s prof-
itability.
Nitrile gloves contributed about
56% of the group’s total revenue in
1QFY21, followed by latex (35%), vi-
4 THEEDGE CEO MORNING BRIEF
H O M E
outbreak was discovered and an Enhanced
Movement Control Order (EMCO) was
imposed to combat its spread.
The EMCO was first implemented on
Nov 17 and was scheduled to end on Nov
30. Subsequently, it was extended for an-
other two weeks, and is now scheduled to
end on Dec 14.
Lim estimated a 4% annual revenue im-
pact from the closures of the 28 factories,
which were placed under the four-week
EMCO. The 28 factories represent about
50% of its production capacity.
He said the 4% impact should be re-
flected in the first quarter ended Nov 30,
2020 (1QFY21) and the second quarter
ended Feb 28, 2020 (2QFY21).
Meanwhile, Lim shared that 8,868 fac-
tory employees have undergone Covid-19
tests. Of this number, 5,147 workers or 58%
among them tested positive, while 3,721
BY JUSTIN LIM
theedgemarkets.com
nyl gloves (4%), surgical gloves (4%) and
thermoplastic elastomer (TPE)/cast pol-
yethylene (CPE) gloves (1%).
The group’s profit margin stood at 50%
in its latest quarterly result, up from 41.5%
in 4QFY20 and significantly higher than
the 9.2% it posted a year ago.
Geographically, the strongest sales
growth was seen in the Asia ex-Japan re-
gion, where sales grew 72.9% in 1QFY21
compared to a year ago, followed by West-
ern Europe’s 70.2% increase and Eastern
Europe’s 56.3% climb.
In contrast, North America’s sales vol-
ume dipped 2% y-o-y in 1QFY21, which
the group attributed to the withhold re-
lease order imposed by the US Customs
and Border Protection (CBP) on its two
subsidiaries since July.
BLOOMBERG
workers or 42% tested negative as at Dec 8.
Of those who tested positive, 90% or
4,636 have been released from hospitals
and are certified as fit to work. Hence,
together with the 3,721 staff who tested
negative, it currently has 8,357 or 94% of
workers who are ready to resume work.
He added that most of the workers who
tested positive were asymptomatic and in
stable health, spending an average of be-
tween five and seven days in hospital.
Top Glove’s share price lost ground to-
day despite posting a whopping RM2.38
billion net profit in 1QFY21, which is 27%
more than its full-year net profit of RM1.87
billion posted in the financial year ended
Aug 31, 2020 (FY20).
The counter closed down 25 sen or
3.53% to close at RM6.84, after some
93.82 million shares were done. It has a
market capitalisation of RM54.85 billion.
The North American market ac-
counts for about 22% of the total group’s
sales volume as at 1QFY21, down from
30% in 1QFY19.
Lee said the group has been actively
engaging with CBP to reverse the import
ban on its subsidiaries.
“In fact, we answered all their ques-
tions yesterday. We foresee that we are
closer to the tail-end (of this issue) and
are looking forward to CBP seeing us
as a company that is serious and really
wants to do good, as evidenced by the
many actions we have taken over the
years,” he added.
As to why the group forked out a
whopping RM1.28 billion to buy back
its own shares since September, exec-
utive chairman Tan Sri Lim Wee Chai
simply said it is because the stock’s val-
uation is “cheap”, which makes the ac-
quisition attractive.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0 5 THEEDGE CEO MORNING BRIEF

H O M E

Hartalega is The Edge’s BRC

Company of the Year

KENNY YAP/THE EDGE

From left: The Edge Media Group publisher and group CEO Datuk Ho Kay Tat, OCBC CEO Datuk Ong Eng Bin, Mercedes Benz Malaysia
president and CEO Dr Claus Weidner, Hartalega founder and executive chairman Kuan Kam Hon, Hartalega CEO Kuan Mun Leong,
Hartalega executive director and chief commercial officer Kuan Mun Keng and Hartalega chief financial officer Loh Kean Wooi.

PETALING JAYA (Dec 9): Hartalega
Holdings Bhd won the coveted The Edge
Billion Ringgit Club (BRC) Company of
the Year award for 2020, the 11th edition
of the award to honour Corporate Malay-
sia’s crème de la crème.
Due to the ongoing conditional move-
ment control order (CMCO) in Kuala
Lumpur and Selangor, the annual gala
dinner and award presentation was not
held. Nonetheless, a total of 48 corporate
awards were still presented to 35 compa-
nies this year to spur Corporate Malaysia
on during the current tough patch.
“We started the awards in 2010, with the
aim of encouraging Malaysian companies
to be even better at what they do, to grow,
invest, create jobs as well as be socially re-
sponsible. That, in turn, is hoped to inspire
others to excel.The message that Corporate
Malaysia is resilient and can strive on is all
the more important during this time,” The
Edge Media Group publisher and CEO Da-
tuk Ho Kay Tat said, adding that the award is
coveted because the results are independent-
ly audited and they cannot be bought.
Datuk Ong Eng Bin, CEO of OCBC
Bank Malaysia Bhd, concurred that the rec-
ognition of continued corporate excellence
is of greater significance on the backdrop of
challenging times in face of Covid-19: “De-
spite the environment caused by the pan-
demic, Corporate Malaysia has continued
its sustainable initiatives. Climate change and
social justice realities call for organisations big
and small to embrace environmental, social
and governance (ESG) practices even more
wholeheartedly in all they do.”
There are 161 The Edge BRC mem-
bers this year, down from 168 last year.
BY CINDY YEAP
theedgemarkets.com
The all-time high was 185 in 2011.
At RM1.41 trillion as at end-June, the
total market capitalisation of the 161 BRC
members was below the RM1.55 trillion
among the 168 BRC members as at end-
March last year. Even so, this year’s BRC
members made a collective pre-tax profit
of RM107.7 billion in financial year 2019
(FY2019), up 8.2% from the RM99.5 bil-
lion. Collective net profit was RM80.78
billion, up 10.6% from RM70.73 billion
in FY2018.
BRC members continue to be major tax-
payers, paying an estimated RM26.9 billion
in taxes for FY2019 — more than 40% of
the annual companies income tax collection
estimated by the federal government.
Companies with at least RM1 billion
market capitalisation as at March 31 each
year are added to the annual The Edge
BRC membership list automatically and
are evaluated on growth in profit, returns
to shareholders and corporate responsi-
bility (CR) commitments, among others.
This year the cut-off date was changed to
June 30 due to the Covid-19 pandemic.
Last year, Press Metal Aluminium
Holdings Bhd was named Company of
the Year, trailing Petronas Dagangan Bhd,
which received the award in 2018. AirAsia
Bhd was the award recipient in 2017, Nes-
tle (Malaysia) Bhd in 2016 while Tenaga
Nasional Bhd won it in 2015. Prior to that,
it was Dutch Lady Milk Industries Bhd
(2014), DiGi.Com Bhd (2013), Genting
Bhd (2012), QL Resources Bhd (2011)
and Supermax Corp Bhd (2010).
The Value Creator: Outstanding CEO of
Malaysia award was not given out this year.
Past winners of the Value Creator: Outstand-
ing CEO of Malaysia award are Public Bank
Group chairman Tan Sri Teh Hong Piow, for-
mer CIMB group chairman Datuk Seri Nazir
Razak, AMMB Holdings Bhd chairman Tan
Sri Azman Hashim, AirAsia group CEO Tan
Sri Tony Fernandes, former S P Setia Bhd
president and CEO Tan Sri Liew Kee Sin, for-
mer Malayan Banking Bhd president and CEO
Tan Sri AbdulWahid Omar, Axiata Group Bhd
president and group CEO Tan Sri Jamaludin
Ibrahim, Sunway Group chairman Tan Sri Jef-
frey Cheah, Khazanah Nasional Bhd former
managing director Tan Sri Azman Mokhtar,
Westports Holdings Bhd executive chairman
Tan Sri G Gnanalingam, Dialog Group Bhd
executive chairman and co-founder Tan Sri
Ngau Boon Keat and QL Resources Bhd ex-
ecutive chairman Dr Chia Song Kun.
OCBC Bank Malaysia, a key partner
since the award’s inauguration in 2010, re-
turns as the main sponsor for the eleventh
year this year. Mercedes-Benz Malaysia is
the official car.
“I thank OCBC and Mercedes-Benz
for their steadfast support of the BRC.
We hope this prestigious annual gathering,
which we have had to halt for the first time
this year, would continue to be Corpo-
rate Malaysia’s most anticipated corporate
awards ceremony as the world recovers
from the pandemic,” Ho said.
Details on The Edge BRC members
and award winners will be published in a
special supplement in the Dec 14 issue of
The Edge Malaysia, available on newsstands
and digital subscribers this Saturday, Dec 12.
CO N TI N UES O N PAGE 6
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
FROM PAGE 5
The Edge Billion Ringgit Club Corporate Awards 2020 list of winners
COMPANY OF THE YEAR
Hartalega Holdings Bhd
Construction sector
Highest growth in profit after tax over three years
— Kerjaya Prospek Group Bhd
Highest return on equity over three years
— Sunway Construction Group Bhd
Highest returns to shareholders over three years
— Widad Group Bhd
Consumer products
& services sector
Highest growth in profit after tax over three years
— Guan Chong Bhd
Highest returns to shareholders over three years
— Guan Chong Bhd
Highest return on equity over three years
— Carlsberg Brewery Malaysia Bhd
Energy sector
Highest growth in profit after tax over three years
— Dialog Group Bhd
Highest returns to shareholders over three years
— Dialog Group Bhd
Highest return on equity over three years
— Petron Malaysia Refining & Marketing Bhd
Highest returns to shareholders over three years
— Dayang Enterprise Holdings Bhd
Financial services sector
Below RM10 billion market capitalisation
Highest growth in profit after tax over three years
— Malaysia Building Society Bhd
Highest return on equity over three years
— Syarikat Takaful Malaysia Keluarga Bhd
Highest returns to shareholders over three years
— Syarikat Takaful Malaysia Keluarga Bhd
Financial services sector
RM10 billion and above market capitalisation
Highest growth in profit after tax over three years
— RHB Bank Bhd
Highest returns to shareholders over three years
— RHB Bank Bhd
Highest return on equity over three years
— Public Bank Bhd
6 THEEDGE CEO MORNING BRIEF
H O M E
Healthcare sector Highest returns to shareholders over three years
— Frontken Corporation Bhd
Highest returns to shareholders over three years
Highest growth in profit after tax over three years
— Supermax Corporation Bhd
— Pentamaster Corporation Bhd
Highest growth in profit after tax over three years
Highest return on equity over three years
— Hartalega Holdings Bhd
— My E.G. Services Bhd
Highest return on equity over three years
— Hartalega Holdings Bhd
Telecommunications
& media sector
Industrial products & services sector Highest return on equity over three years
Highest growth in profit after tax over three years — DiGi.Com Bhd
— UEM Edgenta Bhd Highest returns to shareholders over three years
Highest return on equity over three years — TIME dotCom Bhd
— Uchi Technologies Bhd
Highest returns to shareholders over three years Transportation
— Dufu Technology Corp Bhd & logistics sector
Highest growth in profit after tax over three years
— Malaysia Airports Holdings Bhd
Plantation sector
Highest return on equity over three years
Highest growth in profit after tax over three years — Lingkaran Trans Kota Holdings Bhd
— IOI Corporation Bhd Highest returns to shareholders over three years
Highest return on equity over three years — MISC Bhd
— IOI Corporation Bhd
Highest returns to shareholders over three years
— Far East Holdings Bhd Utilities sector
Highest growth in profit after tax over three years
— Mega First Corporation Bhd
Property sector Highest returns to shareholders over three years
Below RM3 billion market capitalisation — Mega First Corporation Bhd
Highest return on equity over three years Highest return on equity over three years
— Matrix Concepts Holdings Bhd — Gas Malaysia Bhd
Big cap companies
Property sector Companies with RM10 billion to
RM3 billion and above market capitalisation RM40 billion market capitalisation
Highest return on equity over three years Highest growth in profit after tax over three years
— UOA Development Bhd — Dialog Group Bhd
Highest return on equity over three years
— DiGi.Com Bhd
REIT sector Highest returns to shareholders over three years
Highest growth in profit after tax over three years — Supermax Corporation Bhd
— Axis REIT
Highest returns to shareholders over three years Super big cap companies
— Axis REIT Companies with more than RM40 billion
Highest return on equity over three years market capitalisation
— IGB REIT
Highest growth in profit after tax over three years
— Hartalega Holdings Bhd
Highest return on equity over three years
Technology sector — Maxis Bhd
Highest growth in profit after tax over three years Highest returns to shareholders over three years
— Frontken Corporation Bhd — Top Glove Corporation Bhd
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0 7 THEEDGE CEO MORNING BRIEF

CLASSIC FUSION
40 YEARS ANNIVERSARY

Hublot_CEOMorBr_CF40Years_210x297.indd 1 26.11.20 12:19

 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
KUALA LUMPUR (Dec 9): India-based
conglomerate Tata Group will stop dues
payment by AirAsia (India) Ltd to AirA-
sia Group Bhd if the latter does not pro-
vide funding to their low-cost airline joint
venture (JV) before Dec 31, 2020, The
Economic Times (ET) reported, citing re-
cently-added clauses in the AirAsia India
shareholder agreement.
According to the ET report on Tuesday
(Dec 8) evening,Tata will also start deduct-
ing the dues and setting them off against eq-
uity shares in AirAsia India if its JV partner
AirAsia Group is unable to bring in funds
by subscribing to a rights offer of at least
300 crore rupee (about RM166 million).
“The development highlights the strain
that has emerged between the business al-
lies in recent times.
“AirAsia India, a 51:49 JV where Tata is
the controlling shareholder, owes AirAsia
Group 489 crore as per its latest available
financial statements.
“Now,Tata Group had infused 300 crore
into the budget carrier (AirAsia India) in
July to keep it flying amid the Covid-19
outbreak that resulted in a two-month ban
on flying from March 24. The new claus-
es were incorporated in the shareholder
agreement at that point, people aware of
the matter told ET,” ET reported.
It was reported that AirAsia India
owes money to AirAsia Group on ac-
(Dec 9): University of Nottingham Malay-
sia Sdn Bhd’s owners are weighing a sale
that could value the education provider at
about RM500 million, according to people
with knowledge of the matter.
Boustead Holdings Bhd, a Malaysian
conglomerate with interests in finance,
plantations and properties, is working
with an adviser on the planned sale of
its majority stake in the offshore campus
of the British university, the people said.
YTL Corp, which also holds a stake in the
learning institution, may tag along in the
exit, said the people, who asked not to be
identified as the process is private.
Boustead owns about 66% of the Uni-
versity of Nottingham Malaysia, while
YTL and the University of Nottingham
hold approximately 4% and 30% respec-
tively, according to the people.
The partnership between the three
parties was formally announced in 1998
following an invitation from Malaysia’s
education ministry to establish an over-
seas campus, according to its website. The
Malaysian institution, among the first
branch campuses of British universities
established outside of the UK, welcomed
its first students in September 2000.
Nottingham University of Malaysia has
8 THEEDGE CEO MORNING BRIEF
H O M E
also uses services of AirAsia Group compa-
Tata to stop paying nies for maintenance of its aircraft and also
procures consumables and in-flight maga-
dues to AirAsia zines from AirAsia Group.
“Some of those payables could start con-
Group if latter fails verting into equity in the airline (AirAsia
India) if AirAsia [India’s Malaysian] parent
to invest in Indian fails to pump funds by the end of the year.
“Tata and AirAsia India declined to
JV by Dec 31 comment when contacted. AirAsia Group
did not respond to queries as of press time
— report Tuesday,” ET reported.
According to AirAsia Group’s website,
AirAsia Group via 100%-owned AirAsia
BY ARJUNA CHANDRAN SHANKAR Investment Ltd holds a 49% stake in AirA-
theedgemarkets.com sia India.
On Bursa Malaysia today, AirAsia Group
count of money it collected for selling shares were traded up five sen or 5.68% at
tickets on aircraft operated by other 93 sen at 10:47am for a market capitalisa-
AirAsia Group companies. tion of about RM3.11 billion.The stock saw
According to the report, AirAsia India some 126 million shares traded.
a 125-acre campus in Semenyih, which
University of is about 30 kilometers (19 miles) away
from Kuala Lumpur, as well as a teaching
Nottingham site in the country’s capital. The educa-
tion center, which offers foundation lev-
Malaysia owners el courses through doctoral degrees, has
around 5,000 students from more than 85
weigh exit different countries.
Deliberations are still early and there is
— sources no certainty that Boustead and YTL will
proceed with the deal, the people said.
YTL Executive Chairman Francis Yeoh
BY ELFFIE CHEW & YANTOULTRA NGUI declined to comment, while representatives
Bloomberg for Boustead and University of Notting-
ham Malaysia didn’t immediately respond
to requests for comment.
Dealmaking in the education sector in
Southeast Asia has gained momentum in
recent years as investors bet that rising in-
comes in the region will translate to higher
spending on schooling.
China Maple Leaf Educational Sys-
tems Ltd acquired Singapore’s Canadi-
an International School for S$680 mil-
lion (US$509 million) this year, while
International Schools Partnership Ltd
in 2019 bought Tenby Education Group,
which owns seven schools in Malaysia. In
2017, buyout firm EQT Partners invested
in English teaching school ILA Vietnam.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
KPower bags RM296m hydropower
project in Perak, expects stronger
earnings in FY21
BY ARJUNA CHANDRAN SHANKAR
theedgemarkets.com
KUALA LUMPUR (Dec 9): Kumpulan
Powernet Bhd (KPower), which is expect-
ing to post stronger earnings for its finan-
cial year ending June 30, 2021 (FY21), has
bagged a contract worth RM296 million
for a mini-hydropower plant in Perak.
In a bourse filing, the group announced
that its wholly-owned KPower Engineer-
ing Sdn Bhd had received and accepted
a letter of award yesterday from Kangsar
Hidro Sdn Bhd to design and build the
plant, which will have a total capacity of
27.3MW in Sungai Singor, Perak. Kang-
sar Hidro is a 15:85 joint venture entity
between Perak state agencyYayasan Perak,
and Kangsar Capital Sdn Bhd. KPower is
expected to complete the project within
48 months from the commencement date,
or by Dec 24, 2024, whichever is earlier.
KPower deputy chairman, manag-
ing director and substantial sharehold-
er Mustakim Mat Nun — who controls
a 0.50% direct stake and 14.94% indi-
rect interest in KPower via Grand Deal
Vision Sdn Bhd — is the director and
major shareholder of OHP Ventures Sdn
Bhd, an indirect shareholder of Kangsar
Hidro with an effective interest of 85%.
OHP Ventures is the parent of Kangsar
Capital. As such, he is deemed to be in-
terested in the award.
Additionally, KPower’s chief financial
officer Amirul Afif Abd Aziz is also a di-
rector and major shareholder of OHP Ven-
tures, an indirect shareholder of Kangsar
Hidro with an effective interest of 85%,
and is also deemed to be an interested
party in KPower’s contract win.
The latest contract win constitutes
a recurrent related party transaction
(RRPT) given Mustakim and Amirul’s
stakes in OHP Ventures, stated the Bursa
announcement. KPower obtained share-
holders’ approval to enter into the RRPT
with OHP Capital and its subsidiaries
(which include OHP Ventures, Kangsar
Capital and Kangsar Hidro) for an aggre-
gate value of RM250 million, at its annual
general meeting (AGM) today.
In a separate statement, KPower chair-
man Datuk Abdul Karim Abdullah said
the contract win marks the group’s con-
centrated efforts towards securing con-
9 THEEDGE CEO MORNING BRIEF
H O M E
tinuous projects for the group as it steps
closer to its target of additional RM2 bil-
lion for its FY21 order book. To date, the
group’s order book in Malaysia, ASEAN
countries and Nepal stands at RM1.4
billion.
At a press conference following the
AGM, KPower deputy chairman and
managing director Mustakim Mat Nun
said the group’s encouraging results for
its first quarter ended Sept 30, 2020
(1QFY21) “is an indication to the market
we are going to make quite a strong regis-
tered growth from a sales angle and profit
after tax angle cumulatively for FY21”.
He also expressed confidence on the
group’s prospects, given that ASEAN has
raised its target for renewable energy in the
region’s installed power capacity to 35% by
2025, from 20% previously. “That is an-
other indication that there will be growth
in that particular industry (renewable ener-
gy), and I think this will be reflected quite
well in FY21,” Mustakim said.
KPower’s 1QFY21 net profit jumped to
RM8.15 million from RM948,000 a year
ago, as revenue grew 411% to RM57.06
million from RM11.16 million.
Meanwhile, Mustakim said the group
has tendered for RM4.21 billion worth of
energy and infrastructure-related projects
in the Middle East, Indonesia, Malaysia,
Laos and Nepal, adding the group will
be bidding for more as FY21 progresses.
In terms of capital expenditure (capex)
for FY21, Mustakim said the group an-
ticipates deploying the funds towards a
large scale solar 4 (LSS4) solar project it
is bidding for. It estimates the total cost of
the project to be around RM180 million,
with their equity portion to be between
RM60 million and RM70 million.
At the same time, the group will use
some capex as a “bridger” for some ex-
isting projects, he added.
Exploring JVs and M&As for
overseas expansion
In the meantime, KPower is looking to
capture certain markets outside of Ma-
laysia, and is exploring joint ventures and
mergers and acquisitions (M&As).
“There are a few opportunities and pos-
sibilities that we are exploring, which we
will announce to the public once they have
materialised,” Mustakim said. He added
that the group is looking at M&A activi-
ties to boost its technological capabilities.
Chairman Abdul Karim said the group
forecasts there will be a global shift to-
wards the hybridisation of energy sources.
“What KPower is looking at, for ex-
ample, is to combine wind technology
with solar technology. This will be very
resourceful, as, in certain locations or
countries, wind density might be quite
dense, or high. Coupled with solar tech-
nology, it can conserve and produce quite
a sizeable amount of electricity,” Abdul
Karim said.
KPower shares closed 3 sen lower at
RM5.22 today, giving it a market capital-
isation of RM590.29 million, after 1.08
million shares were done.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Malaysia’s messy
politics can’t
put off global
yield hunters
BY LIAU Y-SING
Bloomberg
(Dec 9): November was a testy month in
Malaysian politics but you wouldn’t know
it by looking at bond inflows.
Overseas holdings of government secu-
rities rose to RM198.4 billion last month,
the highest since October 2016, according
to central bank data. The increase marked
the seventh straight month of purchases
and the binge occurred as the ringgit rallied
2% to its strongest level in almost a year.
Malaysia’s political drama reached fe-
ver pitch in November as some lawmakers
mounted an attack to oust Prime Minister
Tan Sri Muhyiddin Yassin and infighting
threatened to split the ruling coalition. But
the search for yield and signs of recovery in
the local economy cancelled out the noise.
“Ringgit bonds’ fundamentals are at-
tractive considering the large onshore in-
vestor base, a well-managed pandemic sit-
uation which has in turn limited the extent
of fiscal slippage in 2020, and the ample
policy room the central bank still has at its
KUALA LUMPUR (Dec 9): RHB Bank-
ing Group has downgraded its 2021 Ma-
laysia economic growth forecast, as meas-
ured by gross domestic product (GDP),
to 6.3% from the 7% expansion estimat-
ed previously as the nation’s economic re-
covery in the next few quarters is likely to
remain challenging due to the prolonged
Covid-19 pandemic.
RHB chief economist Dr Sailesh Ku-
mar Jha said RHB’s revised 2021 Malay-
sia GDP growth forecast is lower than
Bloomberg consensus forecast of a 6.8%
expansion.
Jha said this today during a virtual press
conference in conjunction with the launch
of RHB’s report titled “Path Finder —
Separate the Noise from Reality”.
In the 60-page report, RHB economist
Ahmad Nazmi Idrus wrote that on the do-
mestic front, Budget 2021 points to con-
tinued support for private consumption
and public investment.
“Nevertheless, while the fiscal and fi-
nancial support could offset part of the
[GDP] decline, the dampening effect of
the pandemic may still persist.
10 THEEDGE CEO MORNING BRIEF
H O M E
disposal,” said Jennifer Kusuma, a senior
rates strategist at Australia & New Zealand
Banking Group Ltd in Singapore. “Fur-
thermore, the yield differential versus US
Treasuries has widened this year.”
Malaysia’s 10-year benchmark yield was
at 2.76%, offering a 183-basis point pre-
mium over comparable US Treasuries.The
gap has widened from around 140 basis
points at the start of the year.
Inflows are likely to persist if the op-
timism about the global vaccine rollout
and a recovery in regional trade continue
to support risk appetite. Even Fitch Rat-
ings’ downgrade of Malaysia’s sovereign
rating hasn’t dented the sentiment so far.
Still, if the political wrangling resurfac-
es, global funds may start to shift to other
Asian markets. “This is an area investors
will monitor closely,” ANZ’s Kusuma said.
RHB downgrades
Malaysia
economic growth
forecast to 6.3%
on Covid-19
challenges
BY TAN SIEW MUNG
theedgemarkets.com
“So far, we think Bank Negara Malay-
sia (BNM) is likely to stay pat, keeping
the interest rate (overnight policy rate) at
1.75% into 2021.
“The possibility of more stringent social
measures is negative for growth outlook
ahead. However, support in the form of
large-scale fiscal spending alongside finan-
cial backing should be substantial,” Ahmad
Nazmi said.
Moody’s
says Axiata
constrained by
shareholder
returns
commitment,
high capital
spending
BY ANIS HAZIM SHARUDIN
theedgemarkets.com
KUALA LUMPUR (Dec 9):
Moody’s Investors Service, which
announced the completion of a pe-
riodic review of the rating of Axiata
Group Bhd and other ratings that
are associated with the same ana-
lytical unit, said the telecommuni-
cation group’s baseline credit assess-
ment (BCA) is constrained due to its
commitment to shareholder returns
and high level of capital spending,
which will eat into its free cash flows.
In a statement, Moody’s said Ax-
iata’s Baa2 rating is supported by
the company’s BCA of Baa3, and
the likelihood that the Malaysian
government, which has an A3 rat-
ing, will provide “extraordinary sup-
port” in a distress situation results
in a one-notch uplift to the BCA.
“Axiata’s BCA is underpinned
by its earnings from diversified rev-
enue sources and the strong mar-
ket positions of its key subsidiar-
ies, including Celcom Axiata Bhd
in Malaysia and XL Axiata Tbk
(PT) (Baa3) in Indonesia, which
together contributed around 57%
of the company’s consolidated reve-
nue for the nine months ended Sept
30, 2020,” it explained.
However, the impingement of its
BCA demonstrates emerging market
risk and the possibility of providing
financial support to overseas subsid-
iaries, although they currently raise
debt mostly on a non-recourse basis.
“Axiata’s BCA also considers its
holding company status and reliance
on dividends from subsidiaries to ser-
vice its debt obligations,” it added.
At 11.40am, Axiata’s share
price was down one sen or 0.26%
to RM3.77, valuing the group at
RM34.66 billion.
T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0 11 THEEDGE CEO MORNING BRIEF

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 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
MyEG plans RM407m placement
to develop healthcare-related services,
fund foreign workers hostels
KUALA LUMPUR (Dec 9): My EG Ser-
vices Bhd (MyEG) is planning to raise
up to RM407 million via placement to
fund the development of hostels for for-
eign workers under an ongoing project,
develop healthcare-related services, and
to buy fixed assets like kiosks for the on-
line renewal of car and motorcycle road
tax under its e-government concession
business.
It intends to place out up to 220 million
new shares that represent up to 6.29% of
its total issued shares to third-party inves-
tors to be identified, the group said in a
stock exchange filing.
While the actual issue price of the
shares is yet to be fixed — it will be deter-
mined by way of a book-building process
and shall be fixed at no more than a 10%
discount to the five-day volume-weighted
average market price of its shares prior
to the price-fixing date — the expected
sum to be raised is based on the illustra-
tive price of RM1.85 per placement share.
Of the amount to be raised, the largest
portion of RM168 million has been fixed
for the development of healthcare-relat-
ed services, following its venture into the
healthcare sector in May this year, under
which it has launched a one-stop portal
for employers to register and manage Cov-
id-19 health screening of their employees.
“In addition, the group plans to expand
its services by setting up health screening
checkpoints throughout the country, sub-
ject to appointment by the relevant au-
12 THEEDGE CEO MORNING BRIEF
H O M E
BY SYAFIQAH SALIM Covid-19 vaccine from the Department of
theedgemarkets.com Islamic Development Malaysia (JAKIM).
The MoU allows the company to exclu-
sively distribute the vaccine in Malaysia
MyEG’s YTD share price for a period of three years.
performance “If the group is not able to use the pro-
RM ceeds for the above plans, the proceeds
2.0 will be allocated to other future projects to
RM1.96
be identified within the healthcare sector
or for the working capital purposes of the
1.5 group,” it added.
Meanwhile, it plans to use RM126 mil-
lion from the proceeds to be raised to buy
fixed assets and related solutions under its
1.0 e-government concession services, which
include the kiosks mentioned above, and
RM94.5 million to fund the construction
0.5 of the said foreign workers hostels in Tan-
Dec 9, 2019 Dec 9, 2020 jung Langsat under the Foreign Workers
Source: Bloomberg Accommodation Programme (FWAP). Of
the balance, RM9.1 million will be used
for working capital while RM9.4 million
thorities. The expected costs for the health will be used to bear the estimated expenses
screening include the cost to set up mobile of this placement.
laboratories and the purchase of equip- Trading of MyEG shares is suspended
ment for health screening,” MyEG said. from 2.30pm-5pm today to make way for
It also pointed to its Dec 7 announce- the fund-raising announcement. Prior to
ment about having inked a memorandum the suspension, MyEG’s shares slipped
of understanding (MoU) with Anhui Zhi- four sen or 2% to RM1.96, giving it a
fei Longcom Biopharmaceutical Co Ltd market capitalisation of RM6.84 billion,
(Zhifei) to cooperate in conducting Phase after 17.3 million shares were traded.
3 clinical trials and to subsequently com- The stock, which hit a low of 80 sen
mercialise Zhifei’s Covid-19 vaccine in apiece in March, is now trading at more
Malaysia. than two times that.Year to date, the stock
“The group will also be working to- has climbed 78% from when it was trad-
wards obtaining Halal certification for the ing at RM1.10.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0 13 THEEDGE CEO MORNING BRIEF

H O M E

Public
KUALA LUMPUR (Dec 9): Public Bank he is no longer authorised to represent
Bhd has denied any involvement in a joint the Public Bank Group in any matters,”

Bank denies
venture (JV) with G Capital Bhd to set it added, without disclosing when exactly
up a new full-fledged commercial bank in he resigned.

involvement
Cambodia. Meanwhile, Phan also came out with a
In a statement today, Public Bank statement to clarify his position.

in JV to set up
clarified that one of the parties involved “I wish to clarify that my collaboration
in the venture, Datuk Phan Ying Tong, with G Capital Bhd and others in setting

new bank in
was acting in his own capacity as he has up a full-fledged commercial bank in Cam-
resigned from all of his positions in the bodia will be undertaken under my per-

bank.
Yesterday, G Capital announced it has
entered into an heads of agreement with
Phan and Cambodian firm E S Packaging
Co Ltd to jointly undertake the venture
to establish the new bank named Orien-
tal Bank Plc.
“The Public Bank Group wishes to
clarify that Datuk Phan Ying Tong had
resigned from all his positions within
the Public Bank Group and is no longer
Cambodia
sonal capacity,” he said.
“While I have previously served as Pub-
lic Bank Bhd’s regional head for Indo-Chi-
na operations, I no longer represent the
BY EMIR ZAINUL bank in any role following my resignation,”
theedgemarkets.com he added.
Public Bank’s website previously report-
the Regional Head of Public Bank’s In- ed that Phan had 39 years of service with
do-China Operations,” the bank said in the banking group including as general
its statement. manager, and later country head of Cam-
“Following Datuk Phan’s resignation, bodian Public Bank.

NEWS IN BRIEF

FGV drops close to 4% after Felda
announces takeover plan
KUALA LUMPUR (Dec 9): Shares of
FGV Holdings Bhd did not react well
upon trading resumption today, after
the Felda Land Development Authority
(Felda) announced yesterday its plan
to make a mandatory takeover offer
(MO) for the group at RM1.30 per
share. FGV dropped five sen or 3.94%
to close at RM1.22. The stock was
suspended yesterday prior to Felda’s
announcement. The offer price is now at
a premium of eight sen from the stock’s
closing price today, versus a premium
of three sen yesterday prior to the
announcement. Felda is buying over a
6.1% stake in FGV held by Kumpulan
Wang Persaraan (Diperbadankan)
(KWAP), together with a 7.78% interest
held by Urusharta Jamaah Sdn Bhd,
for RM658 million cash, which would
raise its stake in FGV to 35.12%. Then,
together with parties acting in concert
with it, Felda would hold over 50% in
FGV, thus triggering the MO. Felda,
however, has not indicated whether
it intends to maintain FGV’s listing
status. — by Syahirah Syed Jaafar/
theedgemarkets.com
Citi announces
Usman Ahmed
as new Citi
Malaysia CEO
KUALA LUMPUR
(Dec 9): Citi has
appointed Usman
Ahmed as chief
executive officer
(CEO) of Citi
Malaysia, effective Feb 1, 2021. Usman
is presently the Citi country officer and
corporate bank head, Bahrain, and global
head of Islamic banking and cluster head of
Bahrain, Kuwait and Qatar. In a statement,
Citi said Usman will be responsible for
leading the country team and protecting
the Malaysia franchise, leveraging Citi’s
global strengths and further enhancing
Citi’s position as a leading bank and
employer of choice. He will also have
oversight of the Citi Solutions Centers
in Malaysia. Usman is taking over the
CEO role from Lee Lung Nien, who
left the position on Sept 1 to become
chairman, South Asia, of Citi Private Bank.
The Citi Solutions Centers, located in
Kuala Lumpur and Penang, support Citi
operations in over 50 countries globally. —
by Joyce Goh/theedgemarkets.com
Bursa queries Cymao over sharp rise
in share price, volume
KUALA LUMPUR (Dec 9): Cymao
Holdings Bhd, which is involved in the
manufacturing and sale of plywood
products, has been slapped with an unusual
market activity (UMA) query from Bursa
Malaysia on the sharp rise in its share price
and volume recently. Shares of Cymao shot
up 26.26% or 13 sen today and settled at
62.5 sen, with a market capitalisation of
RM46.9 million. It saw 4.78 million shares
traded, five times yesterday’s volume of
914,800. Over the past month, the stock
has shot up 172% from 23 sen on Nov 12.
In a filing today, Bursa asked the company
to disclose whether there is any corporate
development relating to its business
and affairs that has not been previously
announced, which may account for the
UMA, including those in negotiations. — by
Syahirah Syed Jaafar/theedgemarkets.com
Cymao Holdings has jumped
almost 3 times over past
two weeks
Vol (mil) RM
5 0.8
4 RM0.625 0.6

3
AWC secures RM108m hospital support services contract 0.4
KUALA LUMPUR (Dec 9): AWC Bhd has secured a hospital support services contract 2
from the Health Ministry worth RM107.89 million. The group said in a bourse filing that 0.2
the ministry had accepted its tender to provide the services for the Shah Alam Hospital. 1
The contract period will be five years commencing from Jan 1, 2021 to Dec 31, 2025.
0 0.0
AWC’s share price closed three sen or 6.32% higher at 50.5 sen today, valuing the group at Dec 31, 2019 Dec 9, 2020
RM161.35 million. — by Tan Siew Mung/theedgemarkets.com Source: Bloomberg
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
KUALA LUMPUR (Dec 9): Former Sil-
ver Bird Group Bhd managing director
Datuk Jackson Tan Han Kook and its for-
mer chief executive officer (CEO) Derec
Ching Siew Cheong will continue to stand
trial for providing false information to Bur-
sa Malaysia.
This follows the Sessions Court today
dismissing their striking out application
filed in the middle of the year, after they
were acquitted by the Court of Appeal
on 134 counts of cheating by submitting
forged documents.
Sessions Judge Hasbullah Adam ruled
that the appellate court’s decision on June
10 was not binding on his court as estop-
pel does not arise.
He further ruled that it is too premature
for the court to allow the striking out and
that the duo will not be prejudiced if the
trial proceeds as they could still contest
the charges.
As a result, Hasbullah ordered the trial
to proceed on Dec 16 and 17.
Tan is facing seven charges of furnishing
false information to Bursa Malaysia while
Ching is facing eight similar counts to the
trading bourse.
Deputy Public Prosecutor Mohd Hafiz
Mohd Yusof and counsel Datuk N Siva-
nanthan, who appeared for Ching, con-
firmed today’s decision when contacted
by theedgemarkets.com.
Meanwhile, lawyer Teh See Khoon ap-
peared for Tan.
KUALA LUMPUR (Dec 9): The High
Court has fixed Jan 13 to give its decision
on Jepak Holdings Sdn Bhd’s former man-
aging director Saidi Abang Samsudin’s bid to
strike out a lawsuit brought against him by his
former partner Rayyan Radzwill Abdullah.
Justice Datuk Ahmad Bache also fixed
the same day to deliver his decision on
Rayyan’s application for a summary judge-
ment in the case, which is linked to the
controversial RM1.25 billion solar hybrid
energy project for rural schools in Sarawak.
Former premier Datuk Seri Najib
Razak’s wife Datin Seri Rosmah Mansor
is separately on trial for alleged corruption
relating to the project. Rayyan and Saidi
have both appeared as witnesses in the
criminal trial.
Justice Ahmad said he will deliver his
decision on Jan 13, either via e-review or
email to the parties concerned.
He earlier heard lawyers Ravee G Uthi-
rapathy and Krishna Kumar, representing
Rayyan and Saidi respectively, submit on
the striking out and summary judgement
applications in open court.
Rayyan, who purportedly helped Jepak
Holdings secure the solar hybrid project,
14 THEEDGE CEO MORNING BRIEF
H O M E
Ex-Silver Bird
edge of the forged documents, the charges
in this case should also be struck out.
directors will
On June 10, a three-member appellate
court bench led by Justice Datuk Kamar-
continue to
din Hashim acquitted Tan and Ching on all
134 charges of cheating and purportedly
be tried for
using forged documents to cheat Malay-
an Banking Bhd (Maybank) of close to
furnishing false
RM67.4 million.
The appellate court upheld the decision
information
by the Sessions Court and High Court to
acquit them.
to Bursa
Silver Bird — which was delisted from
Bursa Malaysia in 2014 — was known for
its “High 5” brand of bread loaf and “Sil-
verbird” brand of cake. Following a court
BY HAFIZ YATIM order to vacate its operating premises, it
theedgemarkets.com ceased operations in June 2016.
In February 2013, the bread maker
The decision was originally scheduled made a surprising announcement on a
to be delivered on Oct 16 but had to be RM112 million hole in its finances —
postponed due to the Conditional Move- which later turned out to be RM297
ment Control Order (CMCO). million.
Hafiz said the prosecution has five oth- When the financial irregularities were
er witnesses scheduled to testify when the uncovered, Silver Bird announced that the
trial resumes on Dec 16. stock exchange had categorised it as a fi-
Tan and Ching are accused of furnish- nancially distressed company under Prac-
ing Bursa Malaysia with falsified state- tice Note 17.
ments contained in Silver Bird’s eight un- The group then removed both Tan and
audited quarterly financial accounts for Ching from its board of directors short-
the financial years ended Oct 31, 2010 ly after.
and Oct 31, 2011. If convicted of furnishing false infor-
The defence had argued that since the mation, both Tan and Ching could face
Court of Appeal had, in another case, es- up to 10 years in jail and a maximum fine
tablished that Tan and Ching had no knowl- of RM3 million.
Court sets Jan 13
has claimed that he was appointed a con-
sultant by Saidi in early 2016 to draft a
for decision on
working paper relating to the project.
Rayyan, 40, claimed he was promised, in
Sarawak solar
a verbal agreement, that he would receive
RM10 million if Jepak Holdings bagged
hybrid project
the contract.
Jepak Holdings was eventually awarded
dispute
the job on Nov 10, 2016, with the project
said to be worth RM1.25 billion over a
period of three years.
According to Rayyan, he asked Saidi to
BY TIMOTHY ACHARIAM pay the RM10 million service fee for his
theedgemarkets.com help in securing the project, but the latter
was reluctant to do so.
SAM FONG/THE EGDGE On Aug 10, 2017, Rayyan received
RM1 million for his services from Saidi.
The former then asked for payment of
the remaining RM9 million but did not
receive it.
Rayyan alleged that Saidi had not paid
him the outstanding amount, which led
him to file the suit to seek the remain-
ing RM9 million as well as an additional
RM20 million in lost investment oppor-
tunities and business, general damages,
interests and costs.
CO N TI N U ES O N PAG E 15
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Malaysia
unemployment
rate expected to
improve to 4.5%
for December,
says minister
BY AHMAD NAQIB IDRIS
theedgemarkets.com
KUALA LUMPUR (Dec 9):The Ministry
of Human Resources expects Malaysia’s un-
employment rate to continue trending down-
wards to 4.5% for December, from a peak of
5.3% in May due to job losses after the en-
forcement of the Movement Control Order
(MCO) starting March 18 this year.
Human Resources Minister M Saravanan
told the Dewan Rakyat that the unemploy-
ment rate has been declining since its peak
to 4.9% in June and 4.7% in July and Au-
gust, based on the Department of Statistics
Malaysia (DOSM)’s labour survey.
He added that the labour survey showed
that those working in the aviation, hotel and
KUALA LUMPUR (Dec 9): Deputy
Health Minister Dr Noor Azmi Ghazali
insisted today that the allocation for the
Ministry of Health (MoH) under Budget
2021 is higher year-on-year, after the in-
clusion of certain “implicit” allocations,
amid criticisms from opposition MPs on
the allocation amount.
During his winding up of the MoH’s
budget for 2021, Noor Azmi said with the
inclusion of implicit funds, which include
the Covid-19 fund, the allocation for the
ministry is actually RM35.82 billion, or
11% higher than the RM31.94 billion stat-
ed in Budget 2021.
“This is what I was trying to explain
— what is implicit and explicit [in MoH’s
allocation],” he said, amid a barrage of
interruptions from MPs, who questioned
why the increment in the allocation is not
higher, given the current pandemic.
His explanation on the total allocation
for MoH triggered many MPs to question
how there can be “implicit” allocations for
the ministry, with some putting a poser
over transparency in the budget.
“Is this considered off-budget spend-
ing? This was not included in the [Budget
2021] estimates,” said Datuk Seri Dr Zu-
lkefly Ahmad (Amanah-Kuala Selangor).
Meanwhile, other MPs questioned how
15 THEEDGE CEO MORNING BRIEF
H O M E
tourism industries were most affected by
the Covid-19 outbreak.
In September, the figure improved to
4.6%, or approximately 737,500 unem-
ployed, which he attributed to the various
initiatives announced under the govern-
ment’s stimulus packages.
“The unemployment rate is expected to
continue declining to 4.5% and the declin-
ing trend will continue through to 2021,” he
said, during the Ministers Question Time in
Dewan Rakyat today in response to Machang
MP Ahmad JazlanYaakub’s question on the
number of job losses as a result of the MCO.
For the year up to Nov 27, a total of 120,296
people have regained jobs according to Social
Security Organisation (Socso)’s data, said the
minister, out of a total 372,934 jobseekers.
Allocation for
MoH much
higher under
Budget 2021,
insists deputy
minister amid
flak from
opposition
BY AHMAD NAQIB IDRIS
theedgemarkets.com
these implicit allocations can be debat-
ed, given that they were not included in
the budget, leading to a shouting match
between the MPs, before Dewan Rak-
yat Speaker Datuk Azhar Azizan Harun
stepped in.
“How are we going to conclude today’s
session in this condition? I have given the
floor to the deputy minister to wind up
and answer the questions brought up. If
F RO M PAG E 1 4
Saidi, however, claimed that he had
only promised to pay Rayyan RM1 mil-
lion for his services, and that Rayyan
had agreed to the amount.
Saidi also denied any oral agreement
between him and Rayyan concerning
the RM10 million.
The solar hybrid project, which
sparked the legal dispute between
Rayyan and Saidi, is central to Ros-
mah’s corruption trial, in which she is
battling three counts of graft for pur-
portedly receiving a total of RM6.5
million from Saidi to help him secure
the contract.
She allegedly received the money at
her Jalan Duta home and the prime min-
ister’s official residence in Putrajaya be-
tween January 2016 and Dec 20, 2017.
Besides this civil suit, Jepak Holdings
has also filed a suit against the Ministry
of Education for the termination of the
solar hybrid contract in 2018.
Jepak Holdings is also seeking to
be placed under judicial management
(which is a debt restructuring method
that a qualified insolvency practitioner is
appointed an independent judicial man-
ager to rehabilitate a financially troubled
company) and for a winding-up petition
filed against it to be dismissed.
Deputy Health Minister Dr Noor Azmi Ghazali
he is not given a chance to speak, how is
he going to answer your questions?
“If you don’t agree [with his answer],
then that is the end of it. That is how it
works,” said Azhar during the session.
Under Budget 2020, the government
had allocated a total RM30.6 billion to
MoH, while Budget 2021 outlined a
RM31.9 billion allocation — a 4.3% in-
crease.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
KUALA LUMPUR (Dec 9): Malaysia’s
new Covid-19 cases dropped to 959 to-
day, after six consecutive days of reporting
four-digit increases. It also recorded five
new deaths from the coronavirus, accord-
ing to the Ministry of Health.
The ministry also reported a higher
number of new recoveries, with 1,068 Cov-
id-19 patients having recovered from the
disease today. This trimmed the number
of active cases — which carry high trans-
mission risks — to 10,748.
The new cases today raised Malaysia’s
total cases to 76,265, with total recoveries
at 65,124. The country’s death toll from
the disease climbed to 393.
Health director-general Tan Sri Dr
Noor Hisham Abdullah said Selangor re-
corded the highest number of infections
today, with 277 cases, followed by Sabah
(203) and Kuala Lumpur (129).
On Selangor, he said 122 cases came
from other Covid-19 screenings — an um-
brella term that refers to screenings con-
ducted on people with symptoms, pre-sur-
gery screening, workplace screenings and
pre-departure screenings, among others.
Of the balance, 78 cases came from exist-
ing Covid-19 clusters, 76 from the screen-
ing of close contacts of Covid-19 positive
patients, while one was an imported case.
“Among the new infections, six were
imported while 953 were locally-transmit-
ted cases,” Dr Noor Hisham told a media
briefing today.
As for fatalities, two deaths were re-
UK warns people with serious allergies
to avoid Pfizer vaccine
LONDON (Dec 9): Britain’s medicine regulator
has advised that people with a history of
significant allergic reactions do not get Pfizer-
BioNTech’s COVID-19 vaccine after two people
reported adverse effects on the first day of
rollout. National Health Service medical director
Stephen Powis said the advice had been changed
after two NHS workers reported anaphylactoid
reactions associated with getting the shot.
“As is common with new vaccines the MHRA
(regulator) have advised on a precautionary
basis that people with a significant history of
allergic reactions do not receive this vaccination,
after two people with a history of significant
allergic reactions responded adversely
yesterday,” Powis said. “Both are recovering
well.” The Medicines and Healthcare products
Regulatory Agency (MHRA) said the advice to
healthcare professionals was “precautionary”,
and MHRA Chief Executive June Raine said that
the reaction was not a side-effect observed in
trials. — Reuters
16 THEEDGE CEO MORNING BRIEF
H O M E
Covid-19:
ported in Sabah, two in Johor, and one in
Kuala Lumpur.The deceased were all men
Malaysia’s new
aged between 60 and 82 years.
Four new Covid-19 clusters identified
cases drop to
Dr Noor Hisham also said four new Cov-
959 today, but
id-19 infection clusters have been identi-
fied, bringing total clusters reported by
five more deaths
the ministry so far to 396. These four new
clusters have a total of 52 infections.
reported
The new clusters are: the Kupi-Kupi
cluster in Penampang, Sabah (with 12 cas-
es); the Bina Ikon Bintang construction
site cluster involving Lembah Pantai and
BY SYAFIQAH SALIM Kepong in Kuala Lumpur (12 cases); the
theedgemarkets.com Bandar Impian cluster, which spanned Kl-
uang in Johor, Pasir Puteh in Kelantan and
Kuala Kangsar in Perak (nine cases); and
Covid-19: New vs cured cases
the Jalan Kemang cluster in Port Dickson,
Daily infections Daily recoveries Negeri Sembilan (19 cases).
RMCO 2 To date, 211 Covid-19 clusters have been
3000 declared ended including four more today, as
no new cases were reported in 28 days.The
four are: the Gala cluster in Negeri Sembilan,
the Harmoni cluster in Selangor, the Mah-
2000 kota cluster in Kuala Lumpur and Selangor,
and the Bah Kenangan cluster in Selangor.
Active Covid-19 clusters — which are still
being monitored by the ministry — stood at
1,068
1000 185. Of this total, 38 clusters reported new
959
cases today, with the highest number of new
infections coming from the Jalan Genting
cluster in Kuala Lumpur and Pahang (119
0 cases), followed by the Bintang cluster (45
Sept Dec cases) and the Bina Muda construction site
1 9
cluster (39 cases), both in Kuala Lumpur.
NEWS IN BRIEF
Asian nations could mandate Covid-19 shots for travellers, says Tony Fernandes
KUALA LUMPUR (Dec 9): Governments in Asia could require inbound travellers to
receive Covid-19 vaccinations, AirAsia Group’s chief executive officer Tan Sri Tony
Fernandes said on Wednesday, with such conditions expected to become a trend
in the region. “I foresee in Asia anyway, I think they won’t let anyone in without a
vaccination,” Fernandes said at a CAPA Centre for Aviation event. Fernandes said
airlines are not likely to set such requirements for travellers. “It’s not up to the
airlines to decide. It’s for governments to decide. It’ll be the country that’ll decide if
they will allow people to come in if they are not vaccinated,” he said. — Reuters
Passengers confined to cabins after Covid-19 case on Singapore cruise
SINGAPORE (Dec 9): Nearly 1,700 passengers on a Royal Caribbean “cruise-to-nowhere”
from Singapore were told to stay in their cabins today after a Covid-19 case was detected on
board, forcing the ship back to port, authorities said. All passengers had cleared a mandatory
polymerase chain reaction test for Covid-19 up to three days before the cruise started on
Monday, the Singapore Tourism Board (STB) said. The infected passenger, an 83-year-old male,
had reported to the onboard medical centre with diarrhoea, and others on board were told of
the infection early today. At around 2.20pm, a person wearing a full-length white protective
suit was escorted from the ship to a waiting ambulance, which then left the downtown cruise
centre where the ship is docked. Shortly after, the ship’s captain told passengers over the
tannoy that the infected patient had disembarked and that the ship was being deep-cleaned
but said other guests would have to remain in their rooms until further notice. — Reuters
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Poland, Hungary say deal close
on US$2.2 tril EU stimulus
BY WOJCIECH MOSKWA & ZOLTAN SIMON,
MARTON EDER, MAREK STRZELECKI,
NIKOS CHRYSOLORAS, ARNE DELFS,
JONATHAN STEARNS & VIKTORIA DENDRINOU
Bloomberg
(Dec 9): Poland and Hungary have agreed
on a compromise with Germany to un-
block the European Union’s US$2.2 tril-
lion budget and pandemic stimulus plan, a
senior government official in Warsaw said.
The compromise would end a stand-
off that saw Budapest and Warsaw threat-
en to torpedo the EU’s 750 billion-euro
(US$909 billion) pandemic aid fund and
the 2021-2027 budget over objections to
attaching rule-of-law conditions to cash.
Polish Deputy Prime Minister Jaro-
slaw Gowin said an agreement had been
clinched with Germany, which holds the
EU’s rotating presidency, that would now
be presented to the rest of the bloc. A deal
could be finalised by Friday by the end of
a two-day summit of European leaders in
Brussels, he said. A German spokeswoman
said a solution hadn’t been reached yet and
all member states would need to sign off.
“For now we have agreement between
Warsaw, Budapest and Berlin,” Gowin, the
government’s biggest advocate of Poland
dropping its veto threat, told reporters
17 THEEDGE CEO MORNING BRIEF
W O R L D
in Warsaw on Wednesday. “I believe this
agreement will also include the 24 remain-
ing European capitals.”
Moment of destiny
The deal was confirmed by a Hungarian
official familiar with the state of talks who
commented on the condition of not being
named. An EU diplomat said officials were
waiting for final confirmation that an ar-
rangement had been reached.
BLOOMBERG
A solution would offer a climb-down for
Hungarian Prime MinisterViktor Orban and
Polish counterpart Mateusz Morawiecki,
who had backed themselves into a corner
over their opposition to the cash being tied to
democratic standards. EU ambassadors will
meet on Wednesday to discuss the budget
situation, according to an official.
Gowin declined to go into details about
the deal, saying only that it keeps “Poland
sovereign and the EU united.”
“We know that this veto from Hunga-
ry and Poland exists because the financial
framework is connected to the rule of law
principle,” German deputy government
spokeswoman Martina Fietz said in Ber-
lin when asked about whether a deal had
been reached. “The chancellor has made
clear this morning that she cannot say yet
whether a solution will be achieved.”
The zloty jumped to the highest level
against the euro since September on news
of the EU deal. The forint also gained.
The budget holdouts said the link threat-
ened to cut their funding and undermine
their governments, which are being probed
for alleged violations of the bloc’s norms.
The deadlock put at least 180 billion eu-
ros that Hungary and Poland were due to
receive in the coming years, as well as also
payouts that are urgently needed to help ease
the record recessions caused by the virus.
It also would’ve triggered an emergen-
cy budget for the EU from Jan 1, which
would’ve seen funding plunge in almost
all areas and potentially put Poland and
Hungary at the back of the line for even
the limited development aid that would
be available in this case.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
UK will suspend tariffs on US goods
in bid to ease aircraft trade row
LONDON (Dec 9): Britain will suspend
retaliatory tariffs imposed on US goods
as part of a dispute over aircraft subsi-
dies from Jan 1, the trade department
said, describing the move as an attempt
to de-escalate a damaging international
trade conflict.
The decision marks the start of Britain’s
divergence from European Union trade
policy, coming into effect on the day its
exit from the bloc’s rules and regulations
is complete, and signals an ambition to
forge closer ties with the United States.
The multi-billion dollar tit-for-tat tariff
battle between the United States and the
European Union relates to a long-running
row over state subsidies for aircraft man-
ufacturers Airbus and Boeing.
“Ultimately, we want to de-escalate the
conflict and come to a negotiated settle-
ment so we can deepen our trading rela-
tionship with the US and draw a line un-
der all this,” trade minister Liz Truss said
in a statement.
No comment was immediately availa-
ble from the US government or the Eu-
ropean Union.
Although Britain formally left the EU in
January, under the terms of an 11-month
transitional exit arrangement it joined the
18 THEEDGE CEO MORNING BRIEF
W O R L D
BY WILLIAM JAMES
Reuters
EU in applying tariffs on US$4 billion of
US goods in November.
The measures were authorised by the
World Trade Organisation (WTO) follow-
ing a 2019 WTO decision to approve US
tariffs on US$7.5 billion of EU goods.
However, Britain said it would suspend
its tariffs to try to persuade the United
States to reach a settlement, albeit with a
warning that they could re-impose them
“if satisfactory progress towards an agree-
able settlement is not made”.
For its part, the EU is pessimistic about
the chances of an abrupt change in poli-
cy from the United States, even as Don-
ald Trump’s “America First” presidency
comes to an end.
Steel row remains
Truss has repeatedly criticised the US tar-
iffs, which have hurt British exports such
as Scotch whisky.
The Distilled Spirits Council of the
United States applauded Britain’s deci-
sion and urged Washington to seize the
chance to work with Britain to resolve both
the aircraft subsidy dispute and move to
REUTERS
end steel and aluminum tariffs.
Having quit the EU following a narrow
vote in a 2016 referendum, Britain is keen
to capitalise on its new-found freedom to
strike bilateral trade deals.
The United States is seen as top of
the British wish list, although talks with
Trump’s administration made only lim-
ited progress and it remains to be seen
how highly President-elect Joe Biden will
prioritise a deal.
US and European officials are meet-
ing at a senior level to resolve the aircraft
subsidies dispute, according to multiple
sources familiar with the matter.
Truss said separate tariffs on US goods
relating to a row over steel and aluminium
would remain in place after Jan 1 to protect
Britain’s steel and aluminium industries.
The United States in 2018 imposed tar-
iffs on steel and aluminium coming from
the EU, citing national security concerns.
The EU, including Britain, retaliated with
its own set of tariffs, arguing the US con-
cerns were unfounded.
Truss said the British government
would consult with the steel and alumin-
ium sector to see if the tariffs on US goods
could be better tailored to suit the British
economy.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
BEIJING (Dec 9): China’s factory gate
prices fell at a slower pace in Novem-
ber, adding to signs that the world’s sec-
ond-largest economy is rebounding from
the COVID-19 pandemic, but consumer
prices unexpectedly declined for the first
time in over a decade.
The producer price index (PPI) fell
1.5% from a year earlier, the National
Bureau of Statistics said on Tuesday. The
drop was smaller than the 1.8% decline
forecast in a Reuters poll and the 2.1%
drop in October.
Consumer prices fell on an annual ba-
sis for the first time since October 2009
but that was driven by a drop in pork
prices as supply recovered from the Af-
rican swine fever in recent years.
The consumer price index (CPI) fell
0.5% in November from a year earlier
after rising 0.5% in October. The index
came in below even the lowest projection
in a Reuters poll, with forecasts ranging
from -0.3% to +0.5%.
“This was almost entirely driven by
improvements in pork supply and isn’t
evidence of faltering demand,” said Julian
Evans-Pritchard, senior China economist
at Capital Economics, in reference to the
fall in the year-on-year CPI.
“We think the PBOC (People’s Bank
of China) will look through this and fo-
cus on underlying inflation which is likely
to pick up in the coming months as eco-
nomic activity remains strong.”
China has seen a steady rebound from
the coronavirus crisis, with both exports
and manufacturing activity rising rapidly
in November. But there are some con-
cerns about an uneven recovery as cer-
HONG KONG (Dec 9): Hong Kong
pro-democracy activist Agnes Chow was
denied bail today pending an appeal against
her 10-month jail sentence on charges re-
lated to unauthorised assembly during an-
ti-government protests last year.
The 24-year-old activist was jailed on
Dec 2 along with Joshua Wong for their
roles in an unlawful rally near police head-
quarters in 2019, the toughest and most
high-profile sentencing of opposition fig-
ures this year.
Chow’s hearing came after around 16
activists were arrested since Monday, part
of a relentless crackdown on opposition
forces in the Chinese-ruled city.
Cr itics said Hong Kong’s Bei-
jing-backed government is curtailing
opposition and wide-ranging freedoms
guaranteed after the former British col-
ony returned to Chinese rule in 1997, a
charge authorities in Beijing and Hong
Kong reject.
19 THEEDGE CEO MORNING BRIEF
W O R L D
China’s factory
tain sectors grapple with a rising yuan
and still tepid global demand.
prices fall
The recent bout of upbeat releases,
however, has prompted some specula-
more slowly
tion that the central bank could tighten
monetary policy, though officials say they
in November,
are in no rush given the lingering uncer-
tainties around the pandemic.
food weighs on
Slumping pork prices
consumer prices
Month-on-month PPI rose in Novem-
ber at its fastest pace since the pandemic
started in China late last year, on rising
global crude oil prices. It rose 0.5% in
BY STELLA QIU & KEVIN YAO November after no change in the previ-
Reuters ous month.
Raw material prices fell 4.2% from a
REUTERS year ago, at its slowest pace since Feb-
ruary, after declining 6.0% in October.
“We believe as the economy stages a
substantial year-on-year expansion in the
first quarter next year, PPI may achieve
growth with a high positive slope,” said
Zhang Yi, Beijing-based chief economist
at Zhonghai Shengrong Capital Manage-
ment.
The consumer price index fell 0.6%
month-on-month after a 0.3% dip in Oc-
tober.
The year-on-year drop was mostly
driven by volatile food prices, which fell
2% in November from a year ago.
Pork prices slumped 12.5% year-on-
year as China replenished its pig stocks
which had been decimated by the dead-
ly African swine fever, which started in
late 2018.
Core inflation — which excludes food
and energy costs — remained benign last
month at 0.5%, unchanged from October.
BLOOMBERG
Hong Kong
activist Agnes
Chow denied bail
after landmark
sentencing
BY ALEKSANDER SOLUM & YOYO CHOW
Reuters Agnes Chow
Chow, along with Wong and Nathan der the new security legislation on suspi-
Law, founded the now-disbanded democ- cion of “colluding with foreign forces”,
racy group Demosisto in 2016. The party but is yet to face any charges.
was dissolved hours after Beijing passed Under the national security law, Bei-
a contentious national security law for jing punishes what it broadly defines as
the city on June 30 amid fears it could sedition, secession, terrorism, and col-
be targeted under the legislation. lusion with foreign forces with up to life
Chow was also arrested in August un- in jail.
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Social-distancing wearables greet
factory workers, TV show staff
(Dec 9): At Enrico Iori’s Italian factory
and US offices, about 150 employees
don bracelets, belt clips and lanyards
that light up, vibrate and make irritating
sounds whenever they get within six feet
of each other.
“We had no outbreak, we had no in-
ternally generated cases,” said Iori, the
founder and chief executive officer of IK
Multimedia, a maker of products for the
music industry that segued into pandem-
ic-related wearables. “And the good news
is that the people stay apart. The device
buzzes and vibrates. It keeps the people
apart because it’s annoying.”
Iori’s company is one of about 60 in-
cluding giants like Samsung Electron-
ics Co, that offer wearables in the fight
against Covid-19. While vaccines are on
the horizon, it could take months before
work-age employees become eligible to
receive them. Meanwhile, cases are sky-
rocketing, spurring demand for products
like IK’s Safe Spacer. Factories, ware-
houses and even Hollywood producers
are using them to stay open and keep
workers safe.
“About 50% of the workforce is still at
work,” said Jeff Becker, an analyst at For-
rester Research. “That’s a lot of people
who don’t have the luxury of waiting this
thing out at home. And those employers
want a solution to protect their workforce.”
For now, Forrester is treating this as
a pop-up industry, one that could vanish
20 THEEDGE CEO MORNING BRIEF
W O R L D
Safe Spacer
BY OLGA KHARIF
Bloomberg
The device buzzes and
vibrates. It keeps the
people apart because
it’s annoying.”
— Enrico Iori, founder and
CEO of IK Multimedia.
when Covid-19 is in the rearview mirror
and the need for social distancing and con-
tact tracing ends. Still, wearables startups
say orders have ramped up in the last six
weeks, as the pandemic worsens.
So far, Covid-19 has sickened almost
68 million people worldwide, while kill-
ing more than 1.5 million, according to
the Johns Hopkins Coronavirus Resource
Center.
Shelf life
The market for cheap, purpose-built
gadgets could reach US$105 million by
mid-2021, according to WinterGreen Re-
search. Most products tend to cost about
US$100 upfront, but some come with ser-
PHOTO COURTESY OF IK MULTIMEDIA US
gadget.
vice contracts priced at around US$60 to
US$100 a year. The companies are betting
the devices find other workplace applica-
tions in safety and productivity once the
pandemic is defeated.
The Contact wristband from startup
Proxxi Technology Corp alerts all wear-
ers in a workplace when they may be at
risk. It’s used on the set of “The Conners,”
a spinoff of the sitcom “Roseanne” that
airs on ABC, according to CEO Camp-
bell Macdonald.
“The reality is we probably have an-
other six months of real challenges in the
workplace,” Macdonald said. “The cost
of our product is relatively low relative to
shutdown.”
One feature of standalone gadgets is
that they can go for days without charg-
ing. Startup Nodle’s M1 clip-on, for ex-
ample, can run for a week. The company
has already shipped its first 1,000 units,
and has gotten inquiries from more than
1,400 companies, ranging from startups
to banks, which are interested in ordering
a total of about 4 million units, said CEO
Micha Benoliel.
While mobile apps can help with con-
tact tracing, employees at many manufac-
turing facilities, for example, aren’t allowed
to use their phones, Benoliel said.
“It’s difficult for people to know what
six feet really is and to maintain it,” Beno-
liel said. “Having the device reminds you.
And it also recalls your interactions.”
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
Apple launches US$549 new AirPods
Max to boost holiday sales; delivery
times face delays
SAN FRANCISCO/BENGALURU (Dec
9): Apple Inc on Tuesday unveiled its new
AirPods Max, a set of wireless over-ear
headphones, at US$549 apiece, pricier than
some of its other popular phone and tablet
products, in a measure aimed at boosting
sales over the December holiday period.
The new AirPods, which will have up to 20
hours battery life, will be shipped starting
next Tuesday, Apple said. But less than 12
hours after Apple announced the products,
shipping times for US customers had
stretched past a dozen weeks, according to
review of Apple’s website, pushing arrival
times well into 2021. At US$549, AirPods
Max headphones are more expensive than
Apple’s entry-level iPhone, iPad and Watch
models. The company also said Tuesday that
pricing for its base, in-ear AirPods model and
AirPods Pro model would remain the same at
US$159 and US$249, respectively. — Reuters
U.S. House overwhelmingly passes
$740 billion defense bill, defying
Trump veto threat
WASHINGTON (Dec 9): The U.S. House of
Representatives on Tuesday overwhelmingly
backed a $740 billion defense policy bill that
President Donald Trump has pledged to
veto, heading toward a confrontation with
the Republican president weeks before he
is to leave office. The vote was 335 to 78 in
favor of the National Defense Authorization
Act, or NDAA, with strong support from
both Democrats and Republicans, a margin
that would be large enough to overcome
Trump’s promised veto. “Today the House
sent a strong, bipartisan message to the
American people: Our service members and
our national security are more important
than politics,” Democratic Representative
Adam Smith, chairman of the House Armed
Services Committee, said in a statement.
The NDAA sets policy for the Pentagon on
everything from how many ships and rifles
to buy to soldiers’ pay to how best to address
geopolitical threats. — Reuters
21 THEEDGE CEO MORNING BRIEF
W O R L D
NEWS IN BRIEF
UK urged to levy 260 billion pounds
wealth tax to fix pandemic-hit
finances
(Dec 9): A one-off 5% tax on wealth in
the UK could raise more than 260 billion
pounds (US$348 billion) to help fix the
coronavirus-hit public finances, according
to a panel of experts. In a report published
Wednesday, the independent Wealth Tax
Commission called for a charge of 1% a
year for five years on individual assets
above 500,000 pounds. About 8 million
residents would be affected. The debate
over wealth taxes has gained momentum
as the government considers how to
address its fiscal situation, with the Office
for Budget Responsibility predicting
borrowing is on course to reach almost
400 billion pounds in the current fiscal
year. At almost a fifth of the economy,
that’s the largest deficit in peacetime
history. Supporters say a wealth tax would
target those with the broadest shoulders,
and polls show there is public sympathy
for the idea. But critics say it would be
hard to administer, deter entrepreneurs
and fail to raise as much as advocates
reckon. — Bloomberg
REUTERS
Toyota unveils new fuel cell car in
fresh push on hydrogen technology
TOKYO (Dec 9): Japan’s Toyota Motor
Corp put its revamped Mirai hydrogen
fuel cell car, with 30% greater range, on
sale on Wednesday in a fresh push to
promote zero-emission technology amid
growing demand for electric vehicles,
including its own. Toyota has failed
until now to win drivers over to fuel cell
vehicles (FCV), which remain a niche
technology despite Japanese government
backing, amid concerns about lack of
fuelling stations, resale values and the
risk of hydrogen explosions. “The new
Mirai will serve as a new departure point
for creating a hydrogen-based society of
the future,” Toyota said in a statement.
It will cost about 5 million yen ($48,000)
after subsidies, about the same as its
predecessor. The new Mirai launch
comes after Prime Minister Yoshihide
Suga announced a goal in October to cut
Japan’s carbon emissions to zero by 2050.
— Reuters
Billionaire shocked by son’s quick
US$50 million trading loss
(Dec 9): A Russian billionaire’s son who
lost more than US$50 million while
day trading at university told a London
court that he “let down” his father, a
billionaire who “never lost his sense of
the value of money.” Temur Akhmedov is
testifying in a London court, where his
mother is accusing him of working with
his father, Farkhad Akhmedov, to hide
assets after their divorce. Temur denies
the accusations, saying he lost much
of the funds. His father, a one-time fur
trader who went on to amass a fortune
running a gas producer in Siberia, was
very angry when he found out about
the trading loss, he said. “I suspected
he was thinking that he would never
have made the same mistakes that I
had,” the 27-year-old said in a legal filing
Wednesday. “To him, it was a shocking
sum to have lost, especially so quickly.” —
Bloomberg
Tesco’s Asia deal paves way for £5 bil
shareholder windfall
LONDON (Dec 9): Shareholders in Tesco
can look forward to a 5 billion pound
(US$6.7 billion) windfall in the new year,
after the group said it would complete a
US$10.6 billion sale of its Asian businesses
to Thailand’s CP Group next week. Britain’s
biggest retailer said that CP Group, which
runs its 12,000 7-Eleven convenience
stores through CP All and about 80 cash-
and-carry stores under Siam Makro, was
satisfied with the approval notice from
Thailand’s Office of Trade Competition
Commission. This, plus approval from the
Ministry of Domestic Trade and Consumer
Affairs in Malaysia on Nov 10, means there
are no further conditions outstanding and
the disposal is expected to complete on
or around Dec 18. Tesco plans to return
about 5 billion pounds of the proceeds
to shareholders via a special dividend,
together with a share consolidation, and
will also put 2.5 billion pounds into its
pension fund. — Reuters
 T H U R S D AY D E C E M B E R 1 0 , 2 0 2 0
M A R K E T S
CPO RM 3,356.00-10.00 OIL US$ 49.260.42 RM/USD 4.0625 RM/SGD 3.0421 RM/AUD 3.0359 RM/GBP 5.4571 RM/EUR 4.9323
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
AIRASIA X BHD 1,072.9 0.015 0.085 -45.16 352.6
XOX BHD 606.0 0.005 0.110 175.00 382.8
SINO HUA-AN INTERNATIONAL BHD 324.6 0.010 0.120 -7.69 165.4
AT SYSTEMATIZATION BHD 307.3 -0.005 0.190 375.00 724.4
AIRASIA GROUP BHD 204.8 -0.005 0.875 -48.53 2,924.2
PARKSON HOLDINGS BHD 201.9 0.025 0.180 -18.18 192.1
FINTEC GLOBAL BHD 194.3 0.005 0.110 127.03 187.2
YONG TAI BHD 190.7 0.010 0.355 121.88 369.9
SAPURA ENERGY BHD 174.9 0.000 0.130 -51.85 2,077.3
BINTAI KINDEN CORP BHD 168.5 0.150 1.200 943.48 419.2
TOP BUILDERS CAPITAL BHD 157.5 0.000 0.130 73.33 76.5
BUMI ARMADA BHD 153.7 0.015 0.365 -31.13 2,148.4
KANGER INTERNATIONAL BHD 131.6 0.000 0.170 112.50 383.4
PEGASUS HEIGHTS BHD 130.8 0.000 0.030 200.00 316.8
DYNACIATE GROUP BHD 119.5 0.015 0.125 56.25 73.8
PA RESOURCES BHD 116.3 -0.005 0.180 227.27 404.0
PUC BHD 113.4 0.020 0.175 -22.22 108.0
SOLUTION GROUP BHD 104.7 0.300 1.740 1,731.58 622.0
HO WAH GENTING BHD 98.7 0.010 0.790 652.38 416.1
HIAP TECK VENTURE BHD 96.4 0.005 0.490 127.91 672.9
Date as compiled on Dec 9, 2020 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
CYMAO HOLDINGS BHD 0.625 26.26 4,780.2 145.10 45.8
G NEPTUNE BHD 0.025 25.00 3,366.7 -66.67 7.2
COMPUGATES HOLDINGS BHD 0.025 25.00 1,855.9 25.00 70.7
AIRASIA X BHD 0.085 21.43 1,072,878.2 -45.16 352.6
SOLUTION GROUP BHD 1.740 20.83 104,714.9 1731.58 622.0
PRICEWORTH INTERNATIONAL BHD 0.030 20.00 3,808.8 -14.29 135.1
TFP SOLUTIONS BHD 0.160 18.52 56,723.1 346.15 73.3
REX INDUSTRY BHD 0.235 17.50 28,849.8 26.68 80.2
SANICHI TECHNOLOGY BHD 0.070 16.67 50,739.1 40.00 125.6
MEDIA PRIMA BHD 0.250 16.28 38,474.4 -10.71 277.3
PARKSON HOLDINGS BHD 0.180 16.13 201,929.7 -18.18 192.1
BINTAI KINDEN CORP BHD 1.200 14.29 168,534.3 943.48 419.2
DYNACIATE GROUP BHD 0.125 13.64 119,475.5 56.25 73.8
PUC BHD 0.175 12.90 113,419.7 -22.22 108.0
CONNECTCOUNTY HOLDINGS BHD 0.200 11.11 63,568.2 122.22 104.8
KPS CONSORTIUM BHD 0.500 11.11 131.0 1.01 73.9
LION INDUSTRIES CORP BHD 0.425 10.39 51,314.3 6.25 289.3
REACH ENERGY BHD 0.110 10.00 9,113.2 -33.33 120.6
LATITUDE TREE HOLDINGS BHD 4.320 9.64 1,927.3 52.65 411.5
ECONFRAME BHD 0.460 9.52 15,013.6 0.00 149.5
Date as compiled on Dec 9, 2020 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
PUBLIC BANK BHD 19.860 1.400 19,837.1 2.16 77,099.3
HONG LEONG BANK BHD 18.880 0.660 2,158.6 9.13 40,926.5
FRASER & NEAVE HOLDINGS BHD 32.480 0.580 89.5 -6.77 11,913.0
HONG LEONG FINANCIAL GROUP 17.600 0.400 494.6 4.14 20,156.3
LATITUDE TREE HOLDINGS BHD 4.320 0.380 1,927.3 52.65 411.5
UWC BHD 9.210 0.370 1,674.7 331.72 5,067.3
HENGYUAN REFINING CO BHD 6.440 0.330 11,345.5 52.61 1,932.0
GREATECH TECHNOLOGY BHD 8.760 0.310 2,588.0 265.00 5,483.8
BRITISH AMERICAN TOBACCO 14.300 0.300 1,656.4 -5.17 4,083.1
SOLUTION GROUP BHD 1.740 0.300 104,714.9 1,731.58 622.0
CARLSBERG BREWERY MALAYSIA 21.000 0.300 680.3 -28.41 6,420.7
PETRON MALAYSIA REFINING & MAR 6.000 0.240 3,642.8 19.52 1,620.0
LPI CAPITAL BHD 13.200 0.200 189.2 -12.58 5,258.7
RHB BANK BHD 5.800 0.200 7,889.0 0.35 23,258.3
AEON CREDIT SERVICE M BHD 11.900 0.200 28.3 -15.84 3,038.2
HAP SENG CONSOLIDATED BHD 8.300 0.150 526.6 -16.83 20,664.3
KECK SENG MALAYSIA BHD 3.950 0.150 148.2 -15.96 1,419.2
BINTAI KINDEN CORP BHD 1.200 0.150 168,534.3 943.48 419.2
MALAYAN BANKING BHD 8.380 0.140 8,833.2 -3.01 94,202.6
KESM INDUSTRIES BHD 11.640 0.140 16.1 29.62 500.7
Date as compiled on Dec 9, 2020 Source: Bloomberg
22 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 30,173.88 104.09 0.35 INDONESIA 5,944.41 13.65 0.23
S&P 500 3,702.25 10.29 0.28 JAPAN 26,817.94 350.86 1.33
NASDAQ 100 12,635.72 39.25 0.31 KOREA 2,755.47 54.54 2.02
FTSE 100 6,596.95 38.13 0.58 PHILIPPINES 7,102.66 -101.01 -1.40
AUSTRALIA 6,728.47 40.74 0.61 SINGAPORE 2,843.07 17.44 0.62
CHINA 3,371.96 -38.21 -1.12 TAIWAN 14,390.14 29.74 0.21
HONG KONG 26,502.84 198.28 0.75 THAILAND 1,482.67 3.75 0.25
INDIA 46,103.50 494.99 1.09 VIETNAM 1,039.13 9.87 0.96
Date as compiled on Dec 9, 2020 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
G CAPITAL BHD 0.935 -29.70 62,239.4 81.55 285.2
DAYA MATERIALS BHD 0.015 -25.00 12,159.1 200.00 30.6
ES CERAMICS TECHNOLOGY BHD 0.520 -14.75 79,600.2 407.32 239.4
ADVENTA BHD 1.760 -12.44 5,128.3 225.67 268.9
MTOUCHE TECHNOLOGY BHD 0.075 -11.76 46,673.2 -25.00 87.4
DGB ASIA BHD 0.300 -10.45 14,990.3 -73.91 48.1
HLT GLOBAL BHD 1.170 -10.00 64,727.7 550.00 720.5
DESTINI BHD 0.275 -9.84 34,682.0 17.02 419.5
KUMPULAN JETSON BHD 0.230 -9.80 2,328.2 76.92 51.1
CAREPLUS GROUP BHD 2.610 -9.69 34,503.3 1536.60 1435.7
SKB SHUTTERS CORP BHD 0.610 -9.63 57.2 22.00 24.4
NEXGRAM HOLDINGS BHD 0.050 -9.09 16,761.2 233.33 133.1
PAOS HOLDINGS BHD 0.300 -9.09 15.0 -18.92 54.3
LAND & GENERAL BHD 0.110 -8.33 14,720.7 -18.52 327.0
NOTION VTEC BHD 0.935 -8.33 23,560.2 46.09 481.3
KEY ALLIANCE GROUP BHD 0.055 -8.33 19,938.6 83.33 54.0
ASDION BHD 0.225 -8.16 292.5 95.65 28.8
COMFORT GLOVE BHD 3.610 -7.91 17,716.6 356.96 2104.4
RUBBEREX CORP M BHD 1.700 -7.61 22,500.1 844.44 1414.9
ABLEGROUP BHD 0.125 -7.41 2,517.4 78.57 33.0
Date as compiled on Dec 9, 2020 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
BLD PLANTATION BHD 7.800 -0.500 4.3 47.17 729.3
SUPERMAX CORP BHD 7.750 -0.500 22,953.4 1,039.89 20,350.1
G CAPITAL BHD 0.935 -0.395 62,239.4 81.55 285.2
COMFORT GLOVE BHD 3.610 -0.310 17,716.6 356.96 2,104.4
CAREPLUS GROUP BHD 2.610 -0.280 34,503.3 1,536.60 1,435.7
PETRONAS GAS BHD 17.340 -0.280 684.3 8.11 34,311.2
CHIN TECK PLANTATIONS BHD 6.780 -0.270 0.3 0.44 619.4
ADVENTA BHD 1.760 -0.250 5,128.3 225.67 268.9
TOP GLOVE CORP BHD 6.840 -0.250 93,822.3 336.60 54,848.0
HEINEKEN MALAYSIA BHD 21.620 -0.220 40.3 -20.28 6,531.4
RIVERVIEW RUBBER ESTATES BHD 3.000 -0.220 15.2 1.69 194.6
NESTLE MALAYSIA BHD 136.800 -0.200 58.7 -6.94 32,079.6
UMW HOLDINGS BHD 3.410 -0.190 1,208.5 -24.05 3,983.9
KOSSAN RUBBER INDUSTRIES 5.820 -0.180 7,333.8 179.81 14,886.8
SARAWAK CONSOLIDATED 4.730 -0.170 1,055.2 148.95 580.1
MBM RESOURCES BHD 3.390 -0.160 698.4 -12.18 1,325.1
DKSH HOLDINGS MALAYSIA BHD 3.480 -0.160 302.0 32.82 548.7
SERBA DINAMIK HOLDINGS BHD 1.770 -0.140 67,945.3 -19.55 5,969.8
RUBBEREX CORP M BHD 1.700 -0.140 22,500.1 844.44 1,414.9
EURO HOLDINGS BHD 2.380 -0.140 4,138.4 4,227.27 1,908.5
Date as compiled on Dec 9, 2020 Source: Bloomberg