FITCH AFFIRMS MALAYSIA’S SOVEREIGN RATING

AT BBB+, WITH STABLE OUTLOOK p4

T U E S DAY, J U LY 2 0 , 2 0 2 1 w w w. t h e e d g e m a r k e t s. c o m
ISSUE 219/2021

CEOMorningBrief HOME: Govt makes changes to SOPs under Phase One, Two of PPN p3
CTOS Digital makes strong debut that exceeds analysts’ target prices p5
Maybank commits to allocating RM50b for sustainable financing p6
Prosecution appeals against Ku Nan’s acquittal in graft case p13
WORLD: Wall Street’s new fear is that the economy has already peaked p15
KENNY YAP/THE EDGE

AMMB’s
51%-owned unit
sells AmGeneral
Insurance
for RM2.29b
to Liberty Mutual
Report on Page 3.

CMB_190mm(w)x50mm(h)_20Jul2021_FinalOL.pdf 1 7/15/2021 9:32:57 AM

 t u e s d a y j u ly 2 0 , 2 0 2 1
the edge ceo morning brief
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Covid-19:
Daily cases rise
slightly to 10,972,
while vaccination
rate slips to
344,961 doses
by Sulhi Khalid & Syafiqah Salim
theedgemarkets.com
KUALA LUMPUR (July 19) : Malaysia’s Cov-
id-19 cases stayed above the 10,000 level for
the seventh consecutive day, with 10,972 new
infections reported on July 19, up from 10,710
in the previous day, according to Health direc-
tor-generalTan Sri Dr Noor Hisham Abdullah.
The infections were detected from the
screening of 102,194 individuals in the past
24 hours, indicating a 10.74% positivity rate.
Selangor continued to report the highest
number of new infections at 4,404, followed by
Negeri Sembilan (1,340) and Johor (876). Oth-
er states and federal territory with three-digit
cases were Kedah (705), Sabah (651), Kuala
Lumpur (609), Pahang (475), Melaka (474),
Penang (426), Perak (324), Sarawak (301),
Kelantan (170) and Terengganu (144).
Also reported today were 129 Covid-19-re-
lated deaths, bringing total deaths linked to the
coronavirus in the country to 7,148.
The surge of new infections that continue
to surpass new recoveries — which came in
at 6,349 today — caused active cases to climb
further to 128,997. Total recoveries from the
coronavirus now stood at 791,388 versus the
cumulative 927,533 cases reported in the coun-
try since the pandemic began, translating into
a recovery rate of 85.32%.
98.5% of today’s cases in Categories 1
and 2
Of the new infections, 98.5% are cases of little
to no symptoms. Specifically, 57.8% or 6,337
Note: Dear readers, there will be no CEO Morning Brief tomorrow (July 21) as we are taking a break for Hari Raya Aidiladha.
We will be back on Thursday (July 22). For the latest news during the holidays, check out https://www.theedgemarkets.com/.
2 TheEdge CEO morning brief
published by
(266980-X)
. 603-77218000
tel
Level 3, Menara KLK, 1 Jalan PJU 7/6,
Mutiara Damansara, 47810, Petaling Jaya,
Selangor, Malaysia
h o m e
Malaysia’s Covid-19 infection
curve rising again amid
ramped-up testing in Klang Valley
15000 Daily new cases
12000
7-day moving average
11,809
9000
10,972
6000
3000
0
Jan 1, July 19,
2021 2021
of cases were classified as Category 1 (no symp-
toms) and 40.7% or 4,464 cases were classified
as Category 2 (mild symptoms), according to
Dr Noor Hisham.
Only 0.9% or 103 cases were classified as
Category 3 (patients with pneumonia), 0.4%
or 42 cases were Category 4 (pneumonia re-
quiring oxygen therapy) and 0.2% or 26 cases
were under Category 5 (critical and requiring
assisted ventilation).
There are now 915 patients under intensive
care, with 435 requiring ventilator support.
344,961 doses of Covid-19
administered on July 18
A total of 344,961 doses of Covid-19 vac-
cines were given out across the coun-
try on Sunday (July 18) — down from
380,440 on Saturday — to 244,761 in-
dividuals who received their first dose
and 100,200 who got their second dose.
Selangor delivered the highest number of
daily first dose at 70,236, followed by Kuala
Lumpur (40,624), Kedah (18,510), and Sar-
awak (17,944). For the second dose, Sarawak
led with 34,467 shots.
Vaccines administered in Malaysia so far
total 14.35 million doses. A total of 4.53 mil-
lion individuals nationwide have complet-
ed their two-dose regimen — representing
a vaccination rate of 13.85% of the nation’s
population of 32.72 million — while 9.82
million have received at least their first dose.
publisher + . Ho Kay Tat
ceo
editor - in - chief
. Azam Aris
chief commercial officer . Sharon Teh
chief operating officer . Lim Shiew Yuin
editors . Kathy Fong . Jenny Ng . Joyce Goh
Tan Choe Choe . Lam Jian Wyn
to contact editors : eeditor@bizedge.com
to advertise : advertising@bizedge.com
Daily Covid-19 figures:
As at July 18, 2021:
Vaccine doses administered 344,961
% of population fully vaccinated 13.85
% of population with at least
one dose 30
As at July 19, 2021:
Number of new cases 10,972
Number of individuals tested
Positivity rate (%)
102,194
10.74
Category 1 6,337 (57.8%)
[no symptoms]
Category 2 4,464 (40.7%)
[mild symptoms]
Category 3 103 (0.9%)
[with pneumonia]
Category 4 42 (0.4%)
[with pneumonia, requiring
oxygen therapy]
Category 5 26 (0.2%)
[critical & requiring assisted
ventilation]
Number of patients in ICU 915
ICU capacity utilisation (%) 65.92
Number of deaths 129
Updated as at 7.30pm, July 19, 2021
Sources: CITF, MoH
To date, 1.23 million individuals in the
Klang Valley — comprising Selangor, Putra-
jaya and Kuala Lumpur — have got their sec-
ond dose.
Read also:
Ismail Sabri: EMCO in 27 localities across
Sabah, Terengganu and Pahang from this
Wednesday Click here
Selangor to boost daily Covid-19
vaccination rate to 300,000 doses — MB
Click here
Covid: Drastic drop in category four, five
cases involving elderly Click here
 t u e s d a y j u ly 2 0 , 2 0 2 1
KUALA LUMPUR (July 19): AMMB
Holdings Bhd said today its 51%-owned
AmGeneral Holdings Bhd will be dispos-
ing of its entire 100% stake in AmGen-
eral Insurance Bhd (AGIB) to Liberty
Insurance Bhd (LIB) for RM2.29 bil-
lion, to be satisfied via cash and a 30%
stake in LIB.
AmGeneral Holdings entered into an
implementation agreement with LIB to-
day (July 19) for the disposal, AMMB
said in its filing today. The price tag of
RM2.29 billion is subject to adjustments,
it added.
“AMMB’s share of proceeds from the
proposed disposal will be satisfied via a
combination of cash and shares, which
will result in AMMB holding a 30% in-
terest in the LIB and AGIB businesses,”
AMMB said.
“Upon completion of the proposed
disposal, AMMB and Liberty Mutual In-
surance Company (the parent company
of LIB) will hold a 30% and 70% equi-
ty stake respectively in LIB and AGIB.
AMMB will be accounting for the pro-
posed disposal as disposal of a subsidiary
and, subsequently, will account for the
30% retained interest in LIB and AGIB
as an associate undertaking,” it added.
Under the deal, LIB will also acquire
the remaining 49% in AGIB from Insur-
ance Australia Group (IAG).
AGIB and LIB’s operations will sub-
sequently be formally merged, said LIB
in a separate statement.
The expected merger, LIB said, is ex-
pected to give birth to the largest auto
insurer and second largest property and
KUALA LUMPUR (July 19):The govern-
ment has made several changes to standard
operating procedures (SOPs) for Phase
One and Two under the National Recovery
Plan (PPN) involving the services, logistics
and social sectors following positive devel-
opment on the national vaccination rate.
Deputy Prime Minister Datuk Seri Is-
mail Sabri Yaakob said for Phase One, at-
tendance at government offices would be
increased to 40%, subject to instructions
from the Chief Secretary to the Govern-
ment (KSN), while the accounting ser-
vices were also allowed to operate at 60%
capacity.
“Besides that, operations of mines and
quarries are allowed with workers capacity
of up to 60% subject to SOPs for the sector.
This is to meet the needs of critical projects
involving repair and construction works for
roads, including rural and federal roads.
“Ports, airports and the logistics sec-
tor are also allowed to operate 24 hours,”
he said in a statement on PPN develop-
ment today.
3 TheEdge CEO morning brief
h o m e
AMMB’s
51%-owned
unit sells
AmGeneral
Insurance for
RM2.29b to
Liberty Mutual
by Adam Aziz
theedgemarkets.com
casualty insurer in Malaysia based on
2020 data.
As part of the transaction, the pro-
spective merged entity will enter into
an exclusive 20-year new bancassurance
partnership to distribute general insur-
ance products, it said.
“Expanding and investing in interna-
tional insurance markets is instrumental
in our aspiration to become a leading
global property and casualty insurance
company,” said Liberty Mutual’s Global
Retail Markets East President and COO
Matt Nickerson.
“Combining Liberty’s global capabil-
ities with AmGeneral’s leading market
share in motor and a growing business
in additional product lines will create
a best-in-class insurance operation,” he
added.
Govt makes
changes to SOPs
under Phase One,
Two of PPN
Bernama
He said operations of daily and public
markets were extended from 6am to 4pm
depending on local authorities (PBT) and
subject to SOP monitoring by RELA mem-
bers or PBT, while the operating hours
for fresh markets were from 7am to 2pm.
Ismail Sabri said cycling and individual
activities that could practice physical dis-
tancing of two to three metres were also
allowed in Phase One of PPN but only in
the neighbourhood area.
For Phase Two of PPN, outdoor filming
activities were allowed with strict compli-
AGIB was founded in 2012 with the
merger of AmG Insurance Bhd and Kurnia
Insurance (M) Bhd in September 2012.
AMMB and IAG had been mulling the
sale of the auto insurance business since
as early as 2017. In April 2020, Bloomberg
reported that the two owners were looking
at a price tag of up to US$1 billion at the
time and had invited potential suitors to
submit their bids, quoting sources.
Notably, this is the second insurance
business sale in the local industry this year
which has resulted in a local-internation-
al ownership of 30:70 respectively, in line
with a foreign shareholding structure that
was supervised by Bank Negara Malaysia
as recently as in 2019.
On June 22, Italian insurer Generali
proposed to buy a 70% stake in AXA Af-
fin Life Insurance (AALI), of which 21%
is held by Affin Bank Bhd.
Generali’s acquisition in AALI is part
of a series of acquisitions, namely 53% in
AXA Affin General Insurance (AAGI) and
the remaining 51% it did not own in MPI
Generali Insurance. The RM1.29 billion
deal resulted in Generali owning 70% in
AALI and AAGI.
A BNM ruling in 2009 already limited
foreign shareholding in insurers to 70%,
but the push for greater compliance came
only in 2017. In 2019, governor Datuk
Nor Shamsiah Mohd Yunus gave a dead-
line of April that year for insurers to sub-
mit their plans on how to comply with the
local shareholding rule.
Shares of AMMB closed four sen or
1.39% higher at RM2.92 on Monday, val-
uing the group at RM9.68 billion.
ance to SOPs, while the operating hours
for business premises including specialty
stores such as petrol stations would be from
6am to 10pm, he said.
Meanwhile, Ismail Sabri said 31 out
of 17,182 premises including factories,
business premises, construction sites and
workers’ hostels inspected yesterday have
been ordered to close for failing to adhere
to the set SOPs.
On the Compliance Operations Task
Force, he said a total of 541 individu-
als were arrested yesterday for breaching
SOPs, of which 492 were compounded,
20 remanded and 29 others were released
on bail.
“The public is reminded to always com-
ply with the stipulated SOPs and exercise
self-restraint in the effort to break the Cov-
id-19 infection chain,” he said.
Read also: Public reminded not to visit,
travel insterstate as police intensify inspec-
tion during Aidiladha Click here
 T U E S D A Y J U LY 2 0 , 2 0 2 1
Fitch affirms Malaysia’s sovereign rating
at BBB+, with stable outlook
KUALA LUMPUR (July 19): Fitch Rat-
ings has affirmed Malaysia’s long-term for-
eign-currency issuer default rating (IDR) at
‘BBB+’, with a stable outlook, based on its
strong and broad-based medium growth,
and persistent current account surpluses
with a highly diversified export base.
However, the ratings were weighed down
by Malaysia’s high public debt, a low gov-
ernment revenue base and lingering political
uncertainty, the international rating agency
said in a statement today.
Fitch noted that Malaysia is gradually
recovering from a contraction of 5.6% in
2020 caused by the Covid-19 pandemic,
even though social distancing measures have
been tightened over recent months.
But a nationwide lockdown in place since
the beginning of June due to a third Cov-
id-19 wave is now negatively affecting the
services sector. Manufacturing and exports,
however, continue to benefit from thriving
demand for Malaysia’s export products, in-
cluding electronics, crude oil and personal
protective equipment made of rubber.
“We expect gross domestic product
(GDP) growth of 4.5% in 2021 and 6.3%
in 2022, as the output gap narrows and the
vaccine roll-out gathers pace, which should
allow the services sector to benefit from
pent-up demand.
“Risks to our growth forecasts are main-
ly related to the evolution of the pandemic.
Close to a quarter of the population has
received a first vaccine dose, while the gov-
ernment aims to inoculate 80% of the pop-
ulation by the end of year and appears to
have secured enough vaccines to do so,”
said Fitch.
Meanwhile, it said Malaysia has been
running consistent annual current account
surpluses for more than two decades, and
expects it to continue to do so in the next
few years, although the surplus is likely to
narrow to 3.6% of GDP in 2022 from 4.1%
in 2021, as import compression gradually
dissipates.
Malaysia government debt to increase
to 78.1% in 2021, from pre-pandemic
level of 65.2% in 2019
The pandemic has caused a significant rise
in Malaysia’s general government debt, in
line with its rating peers. According to Fitch’s
forecasts, Malaysia’s debt will reach 78.1%
of GDP in 2021, from a pre-pandemic level
of 65.2% in 2019.
The debt figures used by Fitch include
officially reported “committed government
4 THEEDGE CEO MORNING BRIEF
H O M E
BY JUSTIN LIM
theedgemarkets.com
guarantees” on loans, which are serviced
by the government budget, and 1Malay-
sia Development Bhd (1MDB)’s net debt,
equivalent in December 2020 to 12.7% and
1.4% of GDP, respectively.
“On this basis, the debt burden is sig-
nificantly higher than the median of 57%
for sovereigns in the ‘BBB’ rating catego-
ry. Malaysia’s gross debt is over 400% of
revenue, around three times the peer me-
dian,” it said.
Nevertheless, Fitch expects the debt ratio
to decline slightly to 77% of GDP in 2022
and for this trend to continue, facilitated
by the resumption of strong GDP growth.
With relief spending and reduced gov-
ernment revenue, Fitch also expects fiscal
deficit to rise to 6.5% of GDP in 2021, from
6.2% in 2020. Part of the additional spend-
ing will be financed by increased revenue
from above-budget international oil pric-
es and dividends from government-linked
enterprises.
The relief spending includes social se-
curity payments, wage subsidies, grants to
small and medium enterprises (SMEs), al-
location for the procurement of vaccines,
corporate loan guarantees and a repayment
moratorium on certain bank loans, it noted.
The country’s medium-term fiscal out-
look, meanwhile, remains subject to height-
ened political volatility which may prompt
more spending to garner support in parlia-
ment and delay meaningful revenue meas-
ures, Fitch said.
“We expect a gradual reduction in the fis-
cal deficit, which is forecast to average 5.2%
of GDP over 2021 through 2023 (above
the government’s average target of 4.5%) as
growth lifts revenues and Covid-19-related
spending measures lapse.
“We expect general government revenue
to remain low at 18.2% of GDP in 2021
(‘BBB’ median: 26.6%) and dependent on
oil production, which the government ex-
pects to generate 16% of total revenue this
year, a reduction from 25% in 2020, when
Petronas provided a special dividend. The
low revenue base is exacerbated by the re-
moval of the goods and services tax in 2018
(which was replaced with a narrower sales
and services tax) and has in recent years led
the government to draw on special dividends
of government-linked companies,” it added.
It noted that the share of the govern-
ment’s foreign currency-denominated debt
is also low, at around 3% of total debt. Still,
the government is relatively dependent on
foreign financing, although foreign hold-
ings of domestic debt proved remarkably
stable during the pandemic at around 25%
of total, supported by a deep and developed
domestic bond market, it said.
Short-term external debt is high relative
to foreign-exchange reserves (US$111.1
billion at end-June), although a significant
part of this is relatively stable intra-group
borrowing between parent and subsidiary
banks domestically and abroad, it added.
Growing political uncertainty in near
term; rate hike expected in 2022
Fitch noted that the state of emergency
announced by the monarch in January to
suspend parliament and facilitate the quick
implementation of relief measures will end
on Aug 1, causing heightened uncertainty
in the near term.
It expects lingering political uncertain-
ty to weigh not only on the policy outlook,
but also on investment and prospects for
an improvement in governance standards.
In terms of monetary policy, Fitch said
the window for further policy rate cuts ap-
pears limited, given the approaching US
Federal Reserve tapering and an increase
in inflation in Malaysia, albeit from the base
effect of low fuel prices last year. It expects
BNM to start its tightening cycle in 2022,
with a policy rate hike of 25bp.
Read also: Fitch Ratings’ affirmation re-
flects confidence in Malaysia’s policies and
prospects — Tengku Zafrul Click here
 t u e s d a y j u ly 2 0 , 2 0 2 1
CTOS Digital makes strong debut that
exceeds analysts’ target prices
by Syafiqah Salim
theedgemarkets.com
KUALA LUMPUR (July 19): CTOS Digi-
tal Bhd made a strong debut on Bursa Ma-
laysia with its share price soaring to a high
of RM1.76, a 60% premium over its initial
public offering (IPO) price of RM1.10.
At the closing bell, the stock ended its
maiden trading day at RM1.62, up 47%
over the issue price. Its share price exceed-
ed analysts’ target prices (TP), which are in
the range of between RM1.25 and RM1.45,
according to Bloomberg. (see table)
Kenanga Research pegs itsTP at RM1.40,
valuing the credit reporting company at 45
times of its earnings for the financial year end-
ing Dec 31, 2022 (FY22), while UOB Kay
Hian Research’s TP is at RM1.32, based on
40 times FY22 price-earnings ratio (PER).
CTOS was the most actively traded coun-
ter on Monday with 366.36 million shares
changing hands, equivalent to one-third of the
shares made available for its listing exercise.
This is the largest IPO on Bursa Malay-
sia thus far this year, raising RM1.2 billion,
of which roughly 18% or RM220 million
went to the company via issue of new shares.
The IPO exercise entails the public issue
of 200 million new shares and an offer for
sale allocation of 900 million existing shares.
Shares offered to the public under its
IPO were oversubscribed by 27.57 times.
The CTOS Digital group provides digi-
tal solutions to leading financial institutions
and corporates, the commercial segment,
small and medium businesses, as well as
over 1.3 million individual customers.
Kenanga Research commented that CTOS
stands to benefit from a growing customer
base and expansion of product offerings in the
under-penetrated market in Malaysia.
Kenanga analyst Adrian Kok said
CTOS’ fair value of RM1.40 is justified
by its market leader status with a 71.2%
share of the under-penetrated market, and
more robust industry growth by having a
superior compound annual growth rate
(CAGR) of 13.2% compared to the US
(7.5%) and the UK (5.3%).
Kok forecast CTOS to post a net profit
of RM57.5 million, or 2.6 sen per share, in
FY21, with a year-on-year annual profit growth
of nearly 47%. However, the annual earnings
growth is expected to slow down to 18% to
RM68.1 million, or 3.1 sen per share, in FY22.
According to Kok, the stock deserves
a greater premium over its issue price of
RM1.10, which represents a valuation of
5 TheEdge CEO morning brief
h o m e
CTOS Digital Bhd (From left) CTOS Digital Bhd independent non-
executive director Datuk Azizan Haji Abdul Rahman,
RM independent non-executive chairman Tan Sri
1.80 Izzuddin Dali and group chief executive officer (CEO)
Dennis Martin at the listing ceremony yesterday.
RM1.62
T U E S D AY M AY 1 8 , 2 0 2 1 4 THEEDGE CEO MO
While a big chunk of CTOS’ business
RM1.58 T A B is
L habitually
E S A M recurring
P L E F income
O N T /and
C Othe
L O U R
1.45
group’s countercyclical business model is
defensive in nature, CTOS is able to deliv-
er resilient earnings during times of crisis,
such as prolonged Covid-19 lockdowns,
IPO price: RM1.10 according to UOB analyst Jack Goh.
1.10
9am 4:58pm “To note, above 75% of CTOS’ key ac-
July 19, 2021 counts and a significant portion of commer-
cial accounts which made up 80% to 90%
Source: Bloomberg of CTOS’ revenue are recurring, while the
remaining are one-time transactional based.
CTOS climbs above analysts’ target “CTOS recorded a stellar two-year net
profit CAGR of 15% in FY18-20.We opine
prices on maiden trading day
this growth momentum is sustainable in FY21
Stockbroking TP Recommendation and beyond, mainly driven by resilient earn-
firm (RM)
ings visibility from its large corporate custom-
KAF Seagrott 1.28 Buy
er base in Malaysia, incremental revenue from
& Campbell newly acquired associates BOL and Basis,
Kenanga 1.40 Outperform further vertical expansion into and strategic
Research acquisition of selected companies, meaningful
Nomura 1.45 Buy credit growth which spurs demand for credit
UOB Kay Hian 1.32 Buy and risk information solutions, and CTOS’
Research distinctive advantages when combining tra-
JF Apex Securities 1.25 Subscribe ditional data sets with advanced analytics and
Research consumer contributed data.
Source: Bloomberg, brokers’ reports
“These factors will provide CTOS with
a resilient three-year net profit CAGR of
27% in FY21-FY23,” Goh added.
FY22 PER of 35.5 times versus 31 times To recap, CTOS posted a net profit of
for its regional peers. RM19.5 million for the six-month period
UOB Kay Hian Research, meanwhile, ended June 30, 2021 (6MFY21), a 25%
commented that in a hypothetical blue-sky jump from RM15.6 million recorded a year
scenario, the TP can be as high as RM1.68, ago. Revenue expanded 17% to RM75.8
which implies 51 times FY22 PER.The re- million from RM64.7 million a year ago.
search outfit forecast a net profit of RM73 Earnings per share were also higher at one
million, or 3.3 sen per share, for FY22. sen in 6MFY21 versus 0.8 sen previously.
 t u e s d a y j u ly 2 0 , 2 0 2 1
KUALA LUMPUR (July 19): Malayan
Banking Bhd (Maybank) is committed to
allocating RM50 billion in sustainable fi-
nancing as part of its sustainability policy
which is embarked in its five-year strategic
plan (M25) that runs until 2025.
The commitment covers direct lend-
ing or investment, and services related to
arranging, syndicating, fundraising or un-
derwriting as well as advisory, all of which
will integrate environmental, social and
governance (ESG) criteria.
The group is currently developing a
sustainable product framework to com-
plement existing efforts in the area of sus-
tainable finance and aims to implement
the framework this year.
Amongst others, this framework will
outline the methodology and procedures
to classify financial products and services
offered by Maybank into various catego-
ries, including green, sustainable and/or
transition solutions.
At the same time, the banking group
will be scaling up existing green, social and
sustainability (GSS) bonds/Sukuk, project
financing for green projects, ESG themat-
ic funds, GSS loans sustainability-linked
trade products, sustainable supply chain
financing platform, sustainability linked
derivatives, structured products and pro-
viding new green solutions via the group’s
community financial services and insur-
ance sectors.
Speaking at a media briefing on
Maybank’s Sustainability Day, its group
president and chief executive officer Da-
tuk Abdul Farid Alias said the group is
actively seeking to provide financing for
renewable energy projects going forward
KUALA LUMPUR (July 19): CGS-
CIMB Research has kept its “overweight”
call on the banking sector as it still projects
net profit growth of 2.9% for 2021, even
when factoring in maximum modification
loss due to the automatic loan moratori-
um this year.
The research house said in a report
today “banks have to incur modification
loss due to the automatic loan moratorium
but the quantum would be lower than the
RM1.58 billion last year”.
CGS-CIMB Research said none of the
banks have so far provided any guidance
on the exact quantum of modification loss,
though some have said it “will be smaller
than that booked in 2Q20”.
“So, we take the amount of modification
loss for banks in 2Q20 as the worst-case
scenario for CY21F.Total net modification
loss (some banks did not provide figures
for gross modification loss) incurred in
2Q20 was RM1.58 billion. The largest was
6 TheEdge CEO morning brief
h o m e
Maybank
novative and low-cost mortgage financing
to allow people to buy their first home and
commits to
social impact deposit that we launched ear-
lier this year,” said Maybank chief sustain-
allocating RM50b
ability officer Shahril Azuar Jimin.
Previously, Maybank said it will stop
for sustainable
financing new coal activities as part of its
sustainable agenda.
financing
On top of the RM50 billion allocation in
sustainable finance, the key sustainability
commitments are to improve the lives of
one million households across ASEAN, to
by justin lim achieve a carbon neutral position by 2030
theedgemarkets.com and net zero carbon equivalent position
by 2050, to achieve one million hours per
year of sustainability activities and deliver
one thousand significant United Nations’
sustainable development goals (UN-SDG)
related outcomes.
Farid said these commitments give a
better understanding as to how the group
will prioritise material issues and re-define
its sustainability agenda, including setting
of goals, targets and key performance in-
dicators (KPIs).
“In line with this undertaking, we have
elevated our group sustainability council
to an EXCO sustainability committee, and
established a board sustainability commit-
tee to reinforce our commitments in driv-
amid growing activities surrounding re- ing our sustainability agenda into the fu-
newable energy. ture,” he said in a statement.
Apart from renewable energy projects, He added that as part of the efforts
Maybank is also looking into providing to ensure strict adherence to its sustain-
financing to hybrid and electric vehicles ability strategic priority, the group will
where it saw a huge spike in finance de- monitor its progress throughout the M25
mand in those areas. journey with tools and measurement pa-
“Besides that, there are also various as- rameters that have been, or are being
pects of [sustainability] financing, such as developed, to guide and track all major
the social aspect, for example [having] in- commitments.
CGS-CIMB:
Based on the above, CGS-CIMB Re-
search said the modification loss shaves
Banking sector’s
6% off its projected 2021 net profit for
banks under its coverage in the worst case
2021 profit to grow
scenario, noting the figure is reported net
profit, which excludes the one-off provi-
2.9% even with
sion of RM2.83 billion for 1MDB settle-
ment, impairment of RM1.79 billion for
max modification
goodwill and RM147.8 million for impair-
ment of investment in associates incurred
loss from loan
by AMMB in 1Q21.
It estimated the impact will be the
moratorium
largest for RHB Bank’s 2021 net profit
at 15.2% (mainly coming from personal
financing and auto loans) while Alliance
Bank will not be affected given its small
by izzul ikram exposure to auto loans.
theedgemarkets.com Its top sector pick is Public Bank, which
the research house has on “add”, with a
RM498.4 million for Public Bank while target price (TP) of RM5.30.
there was a small write-back for Alliance
Bank due to its limited exposure to auto
loans (1.4% of its total loans),” it said. Click here to read the full story
 t u e s d a y j u ly 2 0 , 2 0 2 1
TNB seeks
collaboration to
help accelerate
EV adoption
by Adam Aziz
theedgemarkets.com
KUALA LUMPUR (July 19): Tenaga
Nasional Bhd (TNB), which is eyeing a
leading role in the development of elec-
tric vehicle (EV) charging infrastructure
nationwide, wants to collaborate with part-
ners to drive EV adoption in Malaysia.
“We believe that it is important for Ma-
laysia to start looking seriously into acceler-
ating the transition into low-carbon mobil-
ity,” said TNB chief strategy and ventures
officer Datuk Fazlur Rahman Zainuddin.
“TNB is prepared to lead this exciting
transition, not only as the infrastructure
provider, but to drive a collaborative ap-
proach with a coalition of stakeholders to
realise this important step towards decar-
bonisation,” Fazlur said at TNB’s Energy
Sector Roundtable Engagement on low
carbon mobility today.
In Malaysia, EV adoption is seen as a
way to reduce carbon emissions but studies
have shown that infrastructure is among
top considerations influencing adoption,
the roundtable was told. Road vehicles are
KUALA LUMPUR (July 19): MSM Ma-
laysia Holdings Bhd said it will evaluate the
interest in MSM Johor by any party with
the prerequisite of an offtake guarantee.
The sugar refiner was responding to an
article in the latest issue of The Edge Ma-
laysia weekly that Singapore-based Wilmar
International Ltd may be looking to invest
in an underutilized refinery in Johor owned
by the group.
MSM Johor’s turnaround and improve-
ment plans include growing its inherent
export footprint for long-term sustainabil-
ity, the group said, noting that it is already
serving Vietnam, China, South Korea, Sin-
gapore and other countries in the region.
“Any material progress on exploring
strategic partnership will be announced
accordingly,” it said in a filing with Bursa
Malaysia.
“Should there be interest from any po-
tential party into MSM Johor, it shall be
evaluated with prerequisite of an offtake
guarantee based on specific destination
market(s) towards reinforcing business
sustainability,” it added.
7 TheEdge CEO morning brief
h o m e
the second largest contributor of green-
house gases after the power sector in Ma-
laysia, and petroleum vehicles make up
half of that emission.
Fazlur noted while TNB sees itself as
the infrastructure provider, early charging
stations have achieved only a 20% average
utilisation rate.
“Infrastructure is our business,” he said.
“But we believe that we cannot do it alone,
we need to work with players in the indus-
try to match supply and demand.”
MSM to evaluate
interest from
any party on
underused Johor
refinery
by Sulhi Khalid
theedgemarkets.com
The Edge Malaysia quoted sources as
saying that Wilmar has expressed interest
in acquiring a 15% stake in the 1.09 mil-
lion-tonne capacity refinery for the price
incurred to build the plant.
The offer, it said, also includes an option
to increase its stake in the refinery to 49%,
with the subsequent price for the additional
equity based on the refinery’s operations.
MSM had reportedly invested about
RM1 billion in the massive refinery in 2015
The collaboration will also help the par-
ties involved to realise the right level of
ambition for the transition from internal
combustion engines, he added.
The role of charging facility developers
is different in different locations. US-based
Tesla is seeking to develop both the charg-
ing infrastructure network and EVs in tan-
dem, and this model is being adopted by
other automakers like Audi and Porsche,
said Malaysian Electric Vehicle Owners
Club president Shahrol Halmi.
Notably, most of the charging is done
at an owner’s home. EV adoption will also
transform existing businesses completely,
namely the fuel retail businesses involving
over 3,000 stations nationwide.
On the positive side, Malaysia is cur-
rently in the midst of formalising its Low
Carbon Mobility Blueprint 2021-2030 via
the Ministry of Environment and Water,
which is expected to spell out clear targets
like percentage of EV adoption.
Malaysia Automotive, Robotics & IoT
Institute chief executive officer Datuk
Madani Sahari said at the panel discus-
sion that now is the right time to push for
the EV agenda, as all parties are converg-
ing and the right incentives will help pivot
from their existing operations.
Among low-hanging fruits to encourage
EV adoption are tax incentives, including for
complete built up (CBU) models, to allow
importers to properly gauge demand before
deciding to expand production through the
complete knock-down (CKD) approach, that
will also bring down the price, Madani said.
on the back of Malaysia’s growing sugar
consumption needs.
Wilmar already owns 26 mills, compris-
ing eight in Australia, seven each in India
and Morocco, and two each in China and
Myanmar.
CGS-CIMB Research in a note previ-
ously highlighted that the revenue growth
of 1% year-on-year was because of the rise
in the blended average selling price MSM’s
refined sugar to RM2,236 a tonne.
Nevertheless, it was partially offset by
weaker domestic sales volumes, owing to
movement restrictions.
“1Q2021 sales volumes for the domes-
tic and industries segments fell 14% and
26% year-on-year respectively, suggesting
that the re-imposition of the movement
control order and rising sugar prices have
negatively impacted local sugar consump-
tion,” it said.
Shares in MSM settled seven sen or
5.74% higher at RM1.29, giving the group
a market capitalization of RM906.84 mil-
lion. The stock has risen by 126.32% from
mere 57 sen in January.
 t u e s d a y j u ly 2 0 , 2 0 2 1
KUALA LUMPUR (July 19): Shares in
KPJ Healthcare Bhd surged as much as
five sen or 4.9% to RM1.07 today after
the midday break, following news reported
over the weekend that it could be a target
of privatisation by its largest sharehold-
er Johor Corp (JCorp). The plan, howev-
er, has reportedly been shelved amid the
pandemic.
On market close, the stock pared one
sen to close four sen or 3.92% higher than
the previous day at RM1.06, giving it a
market capitalisation of RM4.54 billion.
It saw 10.99 million shares traded.
Year-to-date, the stock has risen by 6%
from when it was trading at RM1. Over the
past one year, the stock has soared 34.18%
from the 79 sen it was trading in July 2020.
In its latest publication for the week
starting July 19, The Edge Malaysia week-
ly wrote, citing sources, that JCorp was in
talks to privatise KPJ Healthcare. The plan
involved JCorp partnering global private
equity fund TPG.
The privatisation plan came about after
JCorp, in early 2020, considered options
for its investment in KPJ Healthcare and
was looking at proposals from investors
and bankers. It eventually decided to take
the private hospital operator off Bursa Ma-
laysia jointly with TPG.
The weekly wrote that TPG was planning
to build a regional chain of primary health-
care hospitals through the tie-up with KPJ
Healthcare. The KPJ chain of 28 hospitals
in Malaysia would complement the Colum-
bia Asia Hospital chain that TPG acquired
in September 2019 together with the Hong
Leong group for US$1.2 billion.
KUALA LUMPUR (July 19): Close to half
of Asean companies’ senior executives see
Malaysia as a favoured expansion destina-
tion for growth opportunities in the 10-na-
tion bloc, said Standard Chartered today.
According to a survey commissioned by
Standard Chartered for its Borderless Busi-
ness: Intra-Asean Corridor, 49% of survey
respondents comprising senior executives
of surveyed Asean companies, selected Ma-
laysia as one of the countries offering the
best expansion opportunities in Asean over
the next 12 months.
Borderless Business: Intra-Asean Corridor
is a strategic report that explores high-po-
tential opportunities for cross-border
growth within the region.
“The report also cites automotive,
healthcare and digital services as key
growth sectors for Malaysia. The coun-
try has started making headway in devel-
oping capabilities to spur growth both in
the electrical vehicles segment and data
centre supply.
8 TheEdge CEO morning brief
h o m e
KPJ Healthcare
a source was quoted as saying.
It further cited sources familiar with the
rises near 5%
matter as saying that any privatisation offer
must ensure that JCorp would hold the
following news
majority stake in the privatised company.
JCorp’s stake in KPJ Healthcare is held
of possible
by Capaian Aspirasi Sdn Bhd.Through the
company, it owns 44.2% of KPJ Health-
privatisation
care, which at last Friday’s closing price of
RM1.02 is worth RM2 billion. It also has
interest held via an Islamic trust, through
Waqaf An Nur Corp Bhd.
by sulhi khalid Based on the group’s annual report, the
theedgemarkets.com other major shareholders of the group in-
clude Employees Provident Fund with an
11.28% stake and Kumpulan Wang Aman-
KPJ Healthcare Bhd ah Persaraan (KWAP) with a 5.35% stake
RM in the company.
1.2 In the first quarter ended March 31,
2021 (1QFY21), KPJ Healthcare’s net
RM1.06 profit declined 62.4% to RM15.24 mil-
lion, owing to a fall in revenue as a result
1.0 of lower patient numbers.
The group recorded 712,547 patients
RM0.82
in 1QFY21, compared with 743,970 pa-
0.8 tients in the same quarter of 2020.
The Covid-19 pandemic and the vari-
ous Movement Control Orders (MCOs)
affected KPJ Healthcare’s operations, with
0.6 its bed occupancy rate (BOR) in 1QFY21
July 1, 2020 July 19, 2021 plunging to 39%, from 65% in the corre-
sponding quarter last year.
Source: Bloomberg
Owing to the extended MCOs this
year, KPJ Healthcare’s BOR has contin-
“There was a plan that was put into ac- ued to remain low. In May, the rate was
tion to take KPJ Healthcare private early just around 38%.
last year, and they were going to do it with Analysts expect it to have remained low
the help of TPG. However, the plan was in the second quarter of the year, with the
shelved due to the Covid-19 pandemic,” reimplementation of the MCO.
12 months, with 99% of respondents ex-
Malaysia a pecting growth in production and 96% an-
favoured expansion ticipating growth in revenue.
“Access to the large and growing Asean
destination for consumer market (69%), access to a global
market enabled by a network of Free Trade
Asean companies Agreements (59%) and availability of abundant
and skilled workforce (49%) were among the
— Standard most important drivers for expansion across
the region according to the senior executives of
Chartered survey the surveyed Asean companies,” it said.
It said that with the Regional Compre-
hensive Economic Partnership (RCEP) ex-
pected to attract more investments into Ase-
by Izzul Ikram an, all respondents said they are planning
theedgemarkets.com to increase their investments over the next
three to five years.
“Malaysia is also seen as a leading medi- “Within Asean, Malaysia is a major
cal device manufacturing hub and a regional hub for investments, being the third-larg-
market leader in medical tourism,” it added. est source for intra-Asean foreign direct in-
Standard Chartered said that overall, the vestment (FDI) in 2019,” it noted.
majority of Asean companies focusing on
intra-regional opportunities expect robust
business growth in the region over the next Click here to read the full story
 T U E S D A Y J U LY 2 0 , 2 0 2 1 9 THEEDGE CEO MORNING BRIEF

IF YOU ARE
NOT PART OF
THE SOLUTION
YOU WILL BE
PART OF
THE PROBLEM
Vaccinations reduce infections and save lives*

Get yourself vaccinated

Get your family, friends and colleagues

to register for vaccination

Join the race to build herd immunity

*Covid-19 Vaccines Advice

– World Health Organization

*Benefits of Getting Covid-19 Vaccines

– US Centre For Disease Control & Prevention

THIS IS A COMMUNITY SERVICE MESSAGE ON FIGHTING COVID-19

 t u e s d a y j u ly 2 0 , 2 0 2 1 10 TheEdge CEO morning brief

h o m e

Touch ‘n Go,
KUALA LUMPUR (July 19): Touch ‘n nerships with like-minded brands, in or-
Go Group and Mr DIY Group (M) Bhd der to deliver clear value propositions to

Mr DIY announce
announced today several strategic col- customers and users. We think that we
laboration to enhance customer experi- have a perfect partner in Mr DIY, and

strategic
ence across online and offline channels, together we hope to pave the way for
while working on a more relevant ap- superior offerings for both our sets of

proach to marketing through personal-
ization of offers using data and analytics
capabilities.
In a joint statement, the companies
announced that shoppers can already
top up their Touch ‘n Go cards at all Mr
DIY stores as well as use their Touch ‘n
Go eWallet to make payments for pur-
chases in-store as well as online.
The strategic partnership allows
Touch ‘n Go eWallet users to seamlessly
browse Mr DIY’s catalogue, order and
pay for the items they want, and have the
purchases delivered, or ready for pick-
up at their store of choice, and will be
launched in the third quarter of 2021.
The partnership will allow for several
analytics and personalisation initiatives
in the near future, that will enable Touch
‘n Go eWallet users access to personal-
ized offerings on MR DIY’s online and
offline channels.
“Winning in today’s business envi-
ronment requires forging strong part-
collaboration
customers,” said Effendy Shahul Hamid,
group chief executive officer of Touch
‘n Go Group.
“Touch ‘n Go and Mr DIY are iconic
by Lynette Hew home-grown brands with a strong view
theedgemarkets.com of being hyper customer centric; with an
unending focus on delivering superior
value across the customer experience
chain,” added Effendy.
Adrian Ong, chief executive officer of
Mr DIY, said, “We are constantly looking
for new and innovative ways to make Mr
DIY more accessible to more customers
nationwide. This partnership with Touch
‘n Go is a major step in making shopping
at Mr DIY cashless and rewarding. More
importantly, this move makes shopping
at Mr DIY even more convenient by tak-
ing our promise of ‘Always Low Prices’
right into the screens and devices of cus-
tomers. This is a major milestone in our
aim of becoming the nation’s preferred
From left: Touch 'n Go group CEO Effendy Shahul retailer, and we thank the Touch ‘n Go
Hamid and Mr DIY CEO Adrian Ong team for making it happen.”

Kanger enters
KUALA LUMPUR (July 19): ACE-Mar- “Moreover, the private Covid-19 vac-
ket listed Kanger International Bhd said cine market is expected to commence in

deal to buy five

its unit has entered a deal for the pur- August 2021, which would allow indus-
chase of five million doses of Sinopharm try players to purchase their own vaccine

million doses
Covid-19 vaccines for distribution in supplies. These developments are posi-
Malaysia. tive steps towards the group’s plans in

of Sinopharm
The heads of agreement (HoA) was en- expanding into the healthcare segment,”
tered between its wholly-owned subsidiary he said.

Kanger Medical International Sdn Bhd
and Sparmak Medical Equipment Trad-
ing LLC, according to Kanger’s filing with
Bursa Malaysia today.
Sparmak Medical is an authorised part-
ner of G42 Medications Trading LLC to
purchase Sinopharm Covid-19 vaccines
manufactured in the United Arab Emir-
ates (UAE) under the Hayat-Vax brand.
Under the HoA, Kanger aims to pur-
chase five million vaccine doses with de-
liveries commencing as early as July 2021.
The HoA also provides Kanger an op-
tion to subsequently purchase an addi-
tional five million vaccine doses.
Follow our Covid-19 vaccination tracker to
see where we are in the race to herd immunity.
According to Kanger’s executive direc-
tor Steven Kuah Choon Ching, this HoA
represents the beginning of a long-term
strategic venture to commence the dis-
tribution of these made-in-UAE vaccines
into Malaysia.
Covid-19 vaccines
by Syafiqah Salim
theedgemarkets.com
“Amidst the limited supply of vaccines
and surging cases, we believe it is vital
to look for alternative sources of sup-
ply to expedite the vaccination efforts
in Malaysia.
“The Hayat-Vax vaccine is essentially
the same Sinopharm Covid-19 vaccine,
manufactured in the UAE. Hence, we are
confident that it will be well-received and
accepted by the Malaysian people as an
effective vaccine towards the global fight
against the Covid-19 pandemic,” he said
in a separate statement.
“Recently, the Sinopharm Covid-19
vaccine has been granted conditional ap-
proval for use in Malaysia and is now in-
cluded in the country’s national vaccina-
tion programme.
According to the company, the purchase
price of the vaccines will be satisfied in
cash via a combination of borrowings or
internally generated funds, the proportion
of which will be determined at a later date.
Barring any unforeseen circumstances,
the HoA is expected to contribute positive-
ly to the earnings and earnings per share
of the group for the financial year ending
March 31, 2022 (FY22).
Furthermore, Kanger has also been au-
thorised by G42 Medications to be the
product registration holder and distribu-
tor of the Hayat-Vax vaccine in Malaysia.
On behalf of G42 Medications, Kanger
has submitted the necessary applications
to obtain the required approvals from the
National Pharmaceutical Regulatory Agen-
cy (NPRA) for the Hayat-Vax vaccine to
be used in the country.
At noon break today, Kanger’s share
price fell half a sen or 7.14% to 6.5 sen,
with some 64.86 million shares done. This
gave the group a market capitalisation of
RM181.75 million.
 T U E S D A Y J U LY 2 0 , 2 0 2 1 11 THEEDGE CEO MORNING BRIEF

H O M E

Interest in residential market expected

to be subdued in 2021 amid prolonged
pandemic: Knight Frank
BY RACHEAL LEE
theedgemarkets.com

KUALA LUMPUR (July 19): The overall

interest in the residential sector is likely
to remain subdued for the remainder of
2021 until the health crisis is brought fully
under control, according to Knight Frank
Malaysia’s Real Estate Highlights 1H2021
publication.
Knight Frank Malaysia managing di-
rector Sarkunan Subramaniam noted
that the residential market will continue
to self-correct amid challenges brought
on by the Covid-19 pandemic.
“There were fewer completions and
launches in 1H2021 as the strict con-
tainment measures delayed construction
works, project delivery and completion of
real estate transactions. In the secondary
market, no property viewings and on-site
surveys have been allowed since June,”
he said.
“The economy is still in its recessive
phase and market confidence is expected
to return gradually by early 2022 as buyers
and financiers are all on cautiously opti-
mistic mode,” said Knight Frank deputy
managing director Keith Ooi.
Malaysia’s gross domestic product
(GDP) for 2021 is expected to be revised
downward due to the adverse impact of
the prolonged pandemic on various eco-
nomic sectors. The publication, featuring
the findings of the property market perfor-
mance across Klang Valley, Penang, Johor
Bahru and Kota Kinabalu, stated that the
country’s GDP was previously projected
at between 6.0% and 7.5%.
In the period under review, Knight
Frank observed price corrections for the
high-end condominium market in Kuala
Lumpur — both existing and newly built
— due to weaker demand despite rising
inventory. Similarly, in the tenant-led mar-
ket, rentals remain under pressure due to
weaker leasing demand.
To uplift the residential market, several
key property-related policies and incen-
tives have been announced under the var-
ious stimulus packages such as the exten-
sion of the Home Ownership Campaign
(HOC) until Dec 31, 2021 as well as the
reintroduction of the six-month moratori-
um on bank loans for all individuals, and
small and medium enterprises (SMEs).
Sarkunan: Potential buyers and investors who
have the financial capability may be enticed to
enter the housing market — to buy a home for
their own stay, for an upgrade or for investment
— taking advantage of the price discount,
attractive deals, stamp duty exemption as well
as the current low interest-rate regime.
Other accommodative policies include
the current record low interest rate with
overnight policy rate at 1.75%, the ex-
emption of Real Property Gains Tax for
up to three residential properties for Ma-
laysians until the end of 2021, as well as
the uplift of a 70% margin of financing
limit for the third housing loan onwards
during the HOC period.
Ooi saw a pent-up demand in the hous-
ing market, evidenced by the short burst
of recovery in market activity when move-
ment restrictions were temporarily lifted
earlier.
“The property market is widely expect-
ed to start recovering on the back of a
more positive outlook and strong interest
from domestic investors shifting from the
stock market to safer and less volatile al-
ternative investment products,” said Ooi.
Covid-19 has accelerated the adoption
of technology in property development
with more developers embracing digital
marketing to clear unsold inventories and
boost sales of newly unveiled products.
It has also fuelled demand for residen-
tial properties especially new landed hous-
ing outside the city, in established and
Ooi: The property market is widely expected
to start recovering on the back of a more
positive outlook and strong interest from
domestic investors shifting from the stock
market to safer and less volatile alternative
investment products.
upcoming suburbs with good connectivity
where prices are more affordable and com-
petitive. Buyers are seeking living spaces
with a higher emphasis on functionality
and comfort due to the potential shift to
hybrid work arrangements post-pandemic.
Sarkunan reckoned that the general
buyer focus has now shifted from invest-
ment towards creating a haven to live, relax
and work in comfort due to the movement
control order.
“Thus, potential buyers and investors
who have the financial capability may be
enticed to enter the housing market —
to buy a home for their own stay, for an
upgrade or for investment — taking ad-
vantage of the price discount, attractive
deals, stamp duty exemption as well as the
current low interest-rate regime.
“Looking ahead, there is a window of
opportunity as the deployment of vaccines
is accelerated to allow the gradual reo-
pening of more economic sectors. The re-
sumption and commencement of new me-
ga-developments, supported by improved
infrastructure, will boost economic activ-
ities and also aid in the recovery of the
property market,” said Sarkunan.
 t u e s d a y j u ly 2 0 , 2 0 2 1
BHIC gets one-year extension for
Mindef submarine service support
for RM159m
KUALA LUMPUR (July 19): Boustead
Heavy Industries Corp Bhd (BHIC)
said today it has received a one-year
contract extension for the provision of
In-Service Support for Prime Minister’s
Class Submarines for the Royal
Malaysian Navy for RM159.15 million.
The contract extension was awarded
by the Ministry of Defence (Mindef)
to BHIC’s 60%-indirect unit Boustead
DCNS Naval Corp Sdn Bhd (BDNC),
it said. The contract is effective from
Jan 1, 2021 to Dec 31, 2021, it added.
The other 40% shareholder of BDNC
is France’s Naval Group. The first
year of the contract spanned through
2020 with a value of RM154.3 million,
according to past BHIC filings. — by
Adam Aziz/theedgemarkets.com
Latitude Tree suspends operations
in Malaysia and Vietnam due to
Covid-19
KUALA LUMPUR (July 19): Furniture
maker Latitude Tree Holdings Bhd said
it has temporarily halted operations at
its manufacturing facilities in Malaysia
and Vietnam due to Covid-19. In a Bursa
Malaysia filing, the group said two of its
wholly-owned Vietnamese subsidiaries
are partially suspending their operations
from July 19 to 24 to comply with a
Vietnam government directive to contain
the virus outbreak in 16 southern states.
Latitude said the estimated production
loss is expected to be 1.2% to 1.8% of its
estimated annual output for the financial
year ending 2022, and have an adverse
impact of around 1.5% to 2.0% on its
revenue for the year. In Malaysia, its
wholly-owned Rhong Khen Timbers Sdn
Bhd (RKTSB) in Kuala Terengganu has
also suspended operations for six days
from July 18 to 24, after it discovered
two Covid-19 cases among its factory
workers. “The move is expected to
have minimal impact on the company,
as RKTSB supplies mainly to its fellow
subsidiary, Latitude said. — by Sulhi Khalid/
theedgemarkets.com
12 TheEdge CEO morning brief
h o m e
news In brief
Courts orders Tan Chong to return
repossessed buses to Konsortium
Transnasional, pay over RM23m
KUALA LUMPUR (July 19): Konsortium
Transnational Bhd and six other companies
linked to the group have succeeded in their
lawsuit to get Tan Chong Motor Holdings
Bhd to return all buses repossessed from
them and to repay a sum of RM22.68 million.
In a bourse filing, Tan Chong said the High
Court also ordered the return of a land
acquisition compensation sum of RM877,000
by its wholly-owned Tan Chong Industrial
Equipment Sdn Bhd (TCIE) to the seven
companies. The six other companies are
Transnasional Express Sdn Bhd, Plusliner Sdn
Bhd, Syarikat Kenderaan Melayu Kelantan
Bhd (SKMK), Syarikat Rembau Tampin Sdn
Bhd, Kenderaan Langkasuka Sdn Bhd and
MHSB Properties Sdn Bhd. Five owed TCIE
RM32.92 million in outstanding rentals and
maintenance for the vehicles. Tan Chong
said a settlement agreement for the debt
was reached in July 2016, under which the
debtors agreed to repay RM16.92 million
in instalments, and transfer an Amplang
plot owned by MHSB to TCIE to settle the
remaining RM16 million. But the plaintiffs
failed to make timely repayments, so TCIE
G Capital buys remaining 40% in
Perak’s small hydro rights owner from
Perak MB Inc in share deal
KUALA LUMPUR (July 19): G Capital Bhd
plans to buy the balance 40% it does not
own in Perak Hydro Renewable Energy Corp
Sdn Bhd in a share deal that may see Perak
MB Inc emerge as a substantial holder of G
Capital. Under a term sheet signed, G Capital
will issue 100 million new G Capital shares
at 50 sen apiece (for a total of RM50 million)
and redeemable convertible preference
shares (RCPS) at 50 sen apiece (the number
of RCPS will be determined later) to purchase
the Perak Hydro stake from Perak MB Inc.
The total purchase consideration will be
determined later, pending the completion
of a related valuation exercise, G Capital
said in a bourse filing. Perak Hydro has the
exclusive rights to build, operate and own mini
hydropower plants at 31 pre-identified sites
with an estimated total installed capacity of
286.1MW for 21 years from the feed-in-tariff
commencement date for each site. Pending
finalisation of the share sale agreement to be
inked in the future, Perak MB Inc will not grant
any approval or letter of support to any other
third party without G Capital’s consent, in
relation to eight mini hydro projects in rivers
in Perak totalling 26.5MW. — by Adam Aziz/
theedgemarkets.com
repossessed the vehicles leased to them.
Subsequently, Konsortium Transnasional
and the other six companies sought an
injunction to restrain TCIE from making
any deals in relation to the Ampang land, a
declaration that the land’s value is RM55.6
million, the repayment of RM22.68 million,
and the return of the vehicles and the
RM877,000 compensation paid by the
government to acquire part of the land. Tan
Chong plans to appeal the court’s judgment
and apply for a stay of execution. “Should
TCIE fail in its contestation of the case, (Tan
Chong) is of the opinion that the group is
able to fulfil the commitment to the above-
mentioned claim and does not expect any
significant impact on the net assets per share
of the group,” said Tan Chong. — by Justin
Lim/theedgemarkets.com
MUH sells cement assets to Muda
Holdings for RM12.5 mil
KUALA LUMPUR (July 19):Multi-Usage
Holdings Bhd’s (MUH) wholly-owned
subsidiary Multi-Usage Cement Products
Sdn Bhd (MUCP) will sell its fixed assets for
RM12.5 million to Muda Paper Mills Sdn
Bhd, a unit of Muda Holdings Bhd. MUH said
the fixed assets, which include three plots of
land in Penang, plant, machinery and motor
vehicles, will help rationalise the company’s
asset holdings, as it has ceased operations in
the manufacturing of cement products due
to the coronavirus impact. “The proceeds
from the proposed disposal shall be utilised
for working capital purposes and capital
requirements of the group,” MUH said in a
filing to Bursa Malaysia today. The group said
it is currently focusing on construction, project
management and property development
activities. — Bernama
 t u e s d a y j u ly 2 0 , 2 0 2 1
Prosecution
appeals against
Ku Nan’s
acquittal in
graft case
by Hafiz Yatim
theedgemarkets.com
PUTRAJAYA (July 19): The prosecution
has appealed to the Federal Court against
the acquittal of former federal territories
minister Datuk Seri Tengku Adnan Teng-
ku Mansor in his RM2 million graft case.
A source from the Attorney-General’s
Chambers confirmed that the notice of ap-
peal was filed today.
“Yes the notice was filed at 12.30pm to-
day. The case will be appealed to the Fed-
eral Court,” the source told The Edge on
condition of anonymity.
In a two-one majority decision, Tengku
Adnan, 70, also known as Ku Nan, was ac-
quitted by the Court of Appeal last Friday.
Justices Datuk Suraya Othman and
Datuk Wira Ahmad Nasfy Yasin found the
Umno lawmaker guilty, while Justice Da-
tuk Abu Bakar Jais maintained the High
Court’s guilty verdict.
KUALA LUMPUR (July 19): The Special
Meeting of Dewan Negara slated for Aug 3
to 5 will focus on the explanation and the
tabling of the Proclamation of Emergency,
and not on any unexpected motion.
Dewan Negara President Senator Tan Sri
Dr Rais Yatim said any other issues, ques-
tions or the right for explanation submitted
by the senators would be considered based
on its relevancy.
“Matters that have been slated for the
meeting are Emergency Proclamation, emer-
gency ordinances made under the Emergen-
cy Proclamation in accordance with Article
150(3) of the Federal Constitution, the ta-
bling of Emergency Proclamation (on Gerik
parliamentary by-election in Perak, Bugaya
state by-election in Sabah).
“Other matters are explanation from
ministers under the Senate’s Standing Or-
der 13(1)(i) relating to the National Recovery
Plan, vaccination programme, implementa-
tion of emergency, and economic stimulus
packages,” he said in a statement here today.
Rais said he was notified by Prime Min-
ister Tan Sri MuhyiddinYassin, as the Lead-
er of the House, that the special meeting is
vital as it is of public interest and should be
13 TheEdge CEO morning brief
h o m e
Shahril Basri/The Edge
Tengku Adnan (centre) as seen last Friday. The
majority bench accepted the former minister’s
defence that the funds were deposited for the Kuala
Kangsar and Sungai Besar parliamentary by-elections.
Tengku Adnan was charged with accept-
ing RM2 million from Aset Kayamas Sdn
Bhd managing director Tan Sri Chai Kin
Kong sometime in June 2016 via a cheque
deposited into Tadmansori Holdings Sdn
Bhd, a company the former minister owns.
The majority bench accepted the former
minister’s defence that the funds were de-
posited for the Kuala Kangsar and Sungai
Besar parliamentary by-elections.
However, Justice Abu Bakar ruled that
the element of corruption had been proven
as he questioned the motive of the transfer
of funds from Aset Kayamas into Tadman-
sori for no valuable consideration.
High Court Justice Mohamed Zaini
Mazlan earlier found the former minister
guilty and sentenced him to 12 months’
jail and a RM2 million fine under Section
165 of the Penal Code.
Senate Special
Meeting to focus
on emergency,
nothing
unexpected
— Rais Yatim
Bernama
helped sooner than the originally slated dates.
Rais said the notification from Muhyid-
din was in accordance with Standing Order
10(3) of the Senate.
In order to ensure that the special meeting
will run smoothly and safely, all anti-Cov-
id-19 standard operating procedures set by
the Ministry of Health and the National Se-
curity Council will be enforced at all times.
Senate secretary Muhd Sujairi Abdullah
will notify all senators of the special meet-
ing soon.
reuters
Syndicate
offering
non-existent
loans busted,
18 arrested
Bernama
GEORGE TOWN (July 19): The po-
lice have busted a syndicate offering
non-existent loans with the arrest of 18
individuals, including a teenager, in two
separate raids on two houses in Batu
Ferringhi here on July 15.
Penang Commercial Crime Inves-
tigation Department chief ACP Mohd
Rosni Mohd Lazim said the suspects
— 15 men and three women aged be-
tween 16 and 23 — were detained in the
raids that started at 1am, where mobile
phones, laptops, automated teller ma-
chine (ATM) cards were also seized.
He said investigations found that
the modus operandi of the syndicate
was to find potential victims through
social media sites like Facebook and
Instagram.
“The victims will be asked to fill in
their personal details in a link provid-
ed. The syndicate members will contact
the victims asking them to make vari-
ous payments for processing purposes,”
he said, adding the syndicate will im-
mediately block the victims’ calls upon
receiving the advance payment.
Investigations revealed that the mo-
bile phone numbers used by the syndi-
cate were involved in 21 cases related
to non-existent loan schemes reported
in 12 states, including Penang.
He said the syndicate, believed to
have been operating for six months,
was raking in up to RM500,000 profit
per month and often moved locations
to evade detection by the authorities.
The case is being investigated un-
der Section 420 of the Penal Code for
cheating and Regulation 5(1) of the
Prevention and Control of Infectious
Diseases Act 2021.
 t u e s d a y j u ly 2 0 , 2 0 2 1
KUALA LUMPUR (July 19): Oct 5
has been fixed as the new hearing date
for former premier Datuk Seri Najib
Razak’s appeal against the dismissal of
his lawsuit against AMMB Holdings
Bhd, AmBank Islamic Bank Bhd and
the bank’s former customer relation-
ship manager Joanna Yu Ging Ping.
The appeal was initially fixed for
hearing in the Court of Appeal on June
25 but was subsequently postponed.
The new date, fixed during case
management today, was confirmed
by the Court of Appeal’s senior assis-
tant registrar KB Elena Hong Tze Lan
when contacted by The Edge.
On Sept 28 last year, High Court
Judge Datuk Khadijah Idris struck out
Najib’s suit on the grounds that it was
an abuse of the court process as the
former premier had filed it to bolster
his defence in the SRC International
Sdn Bhd case.
“This action was not filed by the
plaintiff (Najib) to seek damages, but
for a collateral purpose. This was sim-
ply an abuse of court process,” she
said, pointing out that Najib sought
the proceedings against the bank and
Yu when the SRC case came up and
not years before, when the events in-
itially began to unfold.
Najib filed the suit against Yu over
the management of accounts under
his name to divert funds from SRC.
Najib named AmBank Islamic and
AMMB for breach of duty and negli-
gence in handling his accounts, which
resulted in the former premier being
convicted in the SRC trial for misap-
propriating RM42 million.
The Umno lawmaker was sentenced
to 12 years’ jail and fined RM210 mil-
KUALA LUMPUR (July 19): More dates
have been fixed next year for the proceed-
ings of the 1Malaysia Development Bhd
(1MDB) audit report tampering trial in-
volving former premier Datuk Seri Na-
jib Razak and former 1Malaysia Devel-
opment Bhd (1MDB) CEO Arul Kanda
Kandasamy.
During an online case management to-
day, senior assistant registrar Nur Azizah
Jaafar fixed additional trial dates for a to-
tal of eight days on March 7-10 and 28-
31, 2022.
This was confirmed by Arul Kanda’s
counsel Datuk N Sivananthan, when con-
tacted by theedgemarkets.com.
As for now, the proceedings — which
was last heard in open court in Febru-
ary with the testimony by National Audit
Department (NAD) director Datuk Nor
14 TheEdge CEO morning brief
h o m e
Najib’s appeal
lion by the High Court on July 28,
2020 after being found guilty of all sev-
in suit against
en charges of criminal breach of trust
and money laundering with regard to
AMMB, AmBank
the RM42 million in SRC funds and
abuse of power with regard to the RM4
and Joanna Yu
billion loans awarded by Retirement
Fund (Incorporated) (KWAP) to SRC.
now fixed for
Justice Khadijah said Najib’s suit
was “unsustainable” as the bank and
October
its holding company did not have any
contractual relationship with the for-
mer premier as to the management of
his accounts at the bank.
by Timothy Achariam The judge then awarded a cu-
theedgemarkets.com mulative amount of RM30,000 to
AmBank and AMMB, which had
Zahid Izzani Mohd Said/The Edge jointly applied to str ike out the
suit. Yu, meanwhile, who had also
filed an application to strike out
the suit, was awarded RM25,000
costs to be paid by the for mer
premier.
Najib filed the suit in 2019, where it
concerned his AmBank accounts end-
ing 694, 880, 898 and 906, which he
claimed were managed by the bank
without his knowledge.
He claimed that AmBank and Yu
breached their duties and were negli-
gent in the affairs concerning the ac-
counts as they had disclosed informa-
tion to fugitive businessman Low Taek
Jho (Jho Low), whom the suit referred
to as an unauthorised third party.
Najib also claimed that the bank
and Yu acted on Jho Low’s instructions
to actively ensure the accounts and
other banking statements were kept
Najib (centre) filed the suit in 2019, where it away from the former premier, and
concerned his AmBank accounts ending 694, 880, they failed to contact him directly to
898 and 906, which he claimed were managed by inform that Jho Low was seeking dis-
the bank without his knowledge.
closure of information and documents.
Court adds more
It is worth noting that Najib is still in
the midst of challenging the appointment
dates next year
of former Federal Court judge Datuk Seri
Gopal Sri Ram as the lead prosecutor in his
for 1MDB audit
1MDB-related cases, including this case.
The appeal for the judicial review is
tampering trial
currently due to be heard by the Court
of Appeal on Sept 23.
In this trial, Najib is charged with
abusing his power to amend the 1MDB
by Emir Zainul audit report before it was submitted to
theedgemarkets.com the parliament’s Public Accounts Com-
mittee, to protect himself from discipli-
Salwani Muhammad — will resume as pre- nary, civil and criminal actions while Arul
viously scheduled on Aug 11 and 12 be- Kanda is charged with abetting the for-
fore High Court judge Justice Mohamed mer premier.
Zaini Mazlan. If convicted, they face a maximum
However, Sivananthan added that the jail term of 20 years and a fine of at least
trial dates previously fixed on Oct 4 and five times the amount of gratification, or
7, 2021 have been vacated. RM10,000, whichever is higher.
 t u e s d a y j u ly 2 0 , 2 0 2 1 15 TheEdge CEO morning brief

w o r l d

Wall Street’s new fear is that the economy

has already peaked
bloomberg

by Eric Lam & Sunil Jagtiani

Bloomberg

HONG KONG/SYDNEY (July 19): In-

vestment strategists are starting to consider
a new bearish scenario: The economy has
already hit its speed limit.
With the ferocious spread of Covid-19’s
Delta variant and central banks already
talking about tighter monetary policy to
bring inflation under control, there is a
growing sense of worry that financial mar-
kets have become too optimistic.
The shift in narrative was evident across
assets on Monday. S&P 500 futures lost
1% and small-caps took a beating. In Eu-
rope, the main stock benchmark sank more
than 2% with the most severe losses in en-
ergy, banks, and travel companies. Treas-
uries rallied, with the 10-year yield sliding
to 1.23%.
“Peak growth is starting to become a
more concerning element,” Frank Benzim-
ra, head of Asia equity strategy at Societe
Generale SA, said on Bloomberg Television.
“This is actually one of the elements which
have pushed us to reduce the allocation
into risk assets in our global allocation.
You have inflation, but you have also this
growth element.”
In the minds of many investors, the
moves represent a pullback in overex-
tended areas of the market, like cyclicals.
Others pointed to the usual volatility that
comes with earnings season and thin sum-
mer trading.
Investors had earlier delighted in the
prospect of a strong worldwide economic
rebound fuelled by easy money and vac-
cine roll-outs. But the combination of price
pressures and soaring infection rates raises
the risk that growth could fall short of rosy
forecasts. And with global equities teetering
at all-time highs, there is no room for error.
There is a growing
sense of worry that
financial markets
have become too
optimistic.
“While macro conditions remain overall
supportive for equities, valuations, seasonal
trends and positioning leave the room for
price corrections and volatility spikes as
the one we are seeing today,” said Antonio
Cavarero, head of investments at Generali
Insurance Asset Management.
Other strategists urged clients to use
the weakness as a time to buy.
“I am firmly in the buy-the-dip camp,”
said Marija Veitmane, senior multi-asset
strategist at State Street Global Markets.
“Stocks had a very strong first half sup-
ported by the earnings recovery and we ex-
pect corporate earnings to remain strong.”
For Ruchir Sharma, head of emerg-
ing markets and chief global strategist at
Morgan Stanley Investment Management,
there is still a worry that growth expec-
tations are too high. China’s regulatory
crackdown on its technology sector and US
consumers saving more than they spend
are among the key risks, he said.
Stalling vaccination rates, especially in
the US, are also dragging down market
sentiment, wrote Deutsche Bank AG’s
George Saravelos. At the same time, ris-
ing prices have caused consumer demand
to stall in many economies.
“This is part of broader post-Covid
scarring; it is also part of bottleneck de-
mand destruction,” he wrote. “This is the
opposite of what one would expect if the
environment was genuinely inflationary.
It shows the global economy has a very
low speed limit.”
Read also: Global growth boom may dis-
appoint, Morgan Stanley’s Sharma warns
Click here
 t u e s d a y j u ly 2 0 , 2 0 2 1 16 TheEdge CEO morning brief

w o r l d

Top China fund

BEIJING (July 19): One of China’s largest olies in their fields and vast pools of user
mutual fund companies is betting on the data. Since last year, President Xi Jinping’s

manager bets on
nation’s internet giants, just as a clamp- government has acted to rein in these cor-
down by Beijing sends shockwaves through porations — from derailing Ant Group’s

tech as Beijing
the sector. blockbuster IPO to new rules curbing
China Asset Management Co on Fri- monopolistic practices across the inter-

day completed fundraising for its approxi-
mately 400 million yuan (US$62 million)
Internet Leading Enterprises Mixed Fund,
saying it sees an opportunity to build posi-
tions amid market pessimism in the wake
of China’s drive to rein in its biggest tech-
nology companies.
“Short-term blows to sentiment have
brought about a great buying opportuni-
ty”, said Tu Huanyu, the product’s manag-
er. He added that the fundraising process
was “difficult” given sentiment toward the
industry.
One of the products Tu manages, the
China AMC Innovation Frontier Equity
Fund, has returned 15% this year, beating
69% of peers. The nation’s fourth-largest
mutual fund manager, China Asset Man-
agement oversees 540 billion yuan of mu-
tual fund products, excluding money mar-
ket funds, according to the latest company
data as of the end of March.
tightens grip
by John Liu & April Ma
Bloomberg
A gauge of Hong Kong-listed tech
stocks is down more than 30% from a Feb-
ruary peak. Tencent Holdings Ltd and Al-
ibaba Group Holding Ltd have been the
largest drags on the Hang Seng Index in
the past three months, both falling by at
least 11%. Tencent is trading at less than
28 times forward earnings, compared with
nearly 40 times in January.
On Monday, the Hang Seng Tech gauge
dropped 2.4%, its biggest decline in over
a week.
Beijing has sought to impose strict-
er controls over the nation’s technology
firms, many of which have near-monop-
net landscape. A clampdown on overseas
listings was triggered by Didi Global Inc’s
decision to push ahead with a New York
listing despite objections from regulators.
The new fund’s inception date is yet to
be determined. With up to 95% of assets
in stocks, most of its non-cash holdings
would be invested in leading internet firms
and related companies that could maintain
a competitive edge, according to its man-
date. The fund can invest up to 50% of its
stock holdings in Hong Kong-listed shares
via the trading link with the city’s mar-
ket. Tu declined to elaborate on planned
holdings.
“The industry is at a stage where inter-
net giants have reached a high weighting
and significance in the global economy,
and they need to take on greater social
responsibilities,” said Tu. “Buying during
these short-term challenges will boost our
future prospects of returns.”

China tech
HONG KONG (July 19): China’s tech ty- yuan Capital. “It could stem from deep
coons are discovering their charitable side, patriotic feelings or Buddhist inclinations,

billionaires ramp
as they come under mounting regulatory but it appears to be strongly correlated to
scrutiny from Beijing. Beijing’s recent regulatory crackdowns.”

up donations as
In the latest example, Xiaomi Corp In June, Meituan founder Wang donated
co-founder Lei Jun handed over US$2.2 a US$2.3 billion stake in the food delivery

Beijing cracks
billion of shares in the smartphone mak- giant to his own philanthropic foundation.
er to two foundations, according to filings That came after China’s antitrust watch-

to the Hong Kong Stock Exchange. That
came after Meituan’s Wang Xing and By-
teDance Ltd’s Zhang Yiming gave away
parts of their fortune to charitable causes
last month.
The moves come as a crackdown on
technology companies has intensified since
November, when Jack Ma’s Ant Group Co
was forced to pull its giant initial public
offering. It’s a new era for the country’s
billionaires, as China tightens regulations
in areas from financial services and inter-
net platforms to data security and over-
seas listings.
At the same time, the Chinese public
is becoming increasingly concerned about
down
by Venus Feng
Bloomberg
inequality. In a speech in October, Presi-
dent Xi Jinping said the country’s devel-
opment was “unbalanced” and “common
prosperity” should be the ultimate goal.
“It’s likely much more than coincidence
that China’s tech billionaires have begun
to evince a strong charitable urge,” said
Brock Silvers, chief investment officer at
Hong Kong-based private equity firm Kai-
dog announced an investigation into the
company, and the billionaire posted a clas-
sical poem online that some saw as a veiled
criticism of Beijing.
That same month, ByteDance found-
er Zhang, China’s fourth-richest per-
son with a net worth of US$44.5 bil-
lion, gave about US$77 million of his
own wealth to an education fund in his
hometown.
And in April, Tencent Holdings Ltd’s
Pony Ma, the second-richest with $56.7
billion, pledged to set aside US$7.7 billion
of the company’s money toward curing so-
cietal ills and lifting China’s countryside
out of poverty.

Month Billionaire Amount donated

July Lei Jun, Xiaomi US$2.2 billion in shares Read also:
June Zhang Yiming, ByteDance US$77.3 million of personal wealth
June Wang Xing, Meituan US$2.3 billion in shares Daojia joins Little Red Book in pausing
April Pony Ma, Tencent US$7.7 billion of company money set aside
US IPO plans
“The Chinese home service platform, which
March Colin Huang, Pinduoduo US$100 million pledged to Zhejiang University.
filed publicly this month, isn’t going to start
(In July 2020, Huang and Pinduoduo’s founding
the first-time share sale anytime soon as it
team also donated shares worth US$2.4 billion to a awaits more guidance from regulators.”
charitable trust) Click here
 t u e s d a y j u ly 2 0 , 2 0 2 1
US and allies accuse China
of global hacking spree
by Steve Holland & Doina Chiacu,
David Shepardson & Lisa Lambert
Reuters
WASHINGTON (July 19): The Unit-
ed States and its allies accused China on
Monday of a global cyberespionage cam-
paign, mustering an unusually broad coa-
lition of countries to publicly call out Bei-
jing for hacking.
The United States was joined by
NATO, the European Union, Britain, Aus-
tralia, Japan, New Zealand and Canada in
condemning the spying, which US Secre-
tary of State Antony Blinken said posed
“a major threat to our economic and na-
tional security.”
Simultaneously, the US Department
of Justice charged four Chinese nationals
— three security officials and one con-
tract hacker — with targeting dozens of
companies, universities and government
agencies in the United States and abroad.
The Chinese Embassy in Washing-
ton did not immediately respond to a
request for comment. Chinese officials
have previously said China is also a vic-
tim of hacking and opposes all forms of
cyberattacks.
While a flurry of statements from West-
ern powers represent a broad alliance, cy-
ber experts said the lack of consequences
for China beyond the US indictment was
conspicuous. Just a month ago, summit
statements by G7 and NATO warned Chi-
na and said it posed threats to the inter-
national order.
Adam Segal, a cybersecurity expert at
the Council on Foreign Relations in New
York, called Monday’s announcement a
“successful effort to get friends and allies to
attribute the action to Beijing, but not very
useful without any concrete follow-up.”
Some of Monday’s statements even
seemed to pull their punches. While Wash-
ington and its close allies such as the Unit-
ed Kingdom and Canada held the Chinese
state directly responsible for the hacking,
others were more circumspect.
NATO merely said that its members
“acknowledge” the allegations being leve-
led against Beijing by the US, Canada, and
the UK. The European Union said it was
urging Chinese officials to rein in “mali-
cious cyber activities undertaken from its
territory” — a statement that left open
the possibility that the Chinese govern-
ment was itself innocent of directing the
espionage.
17 TheEdge CEO morning brief
w o r l d
The US was joined
by NATO, the
European Union,
Britain, Australia,
Japan, New Zealand
and Canada in
condemning
the spying.
The United States was much more spe-
cific, formally attributing intrusions such
as the one that affected servers running
Microsoft Exchange earlier this year to
hackers affiliated with China’s Ministry
of State Security. Microsoft had already
blamed China.
US officials said the scope and scale of
hacking attributed to China has surprised
them, along with China’s use of “criminal
contract hackers.”
“The PRC’s Ministry of State Security
(MSS) has fostered an ecosystem of crim-
inal contract hackers who carry out both
state-sponsored activities and cybercrime
for their own financial gain,” Blinken said.
US security and intelligence agencies
outlined more than 50 techniques and
procedures that “China state-sponsored
actors” use against US networks, a senior
administration official said.
Washington in recent months has fo-
cused heavy attention on Russia in accus-
ing Russian hackers of a string of ransom-
ware attacks in the United States.
reuters
The senior administration official said
US concerns about Chinese cyber activi-
ties have been raised with senior Chinese
officials. “We’re not ruling out further ac-
tion to hold the PRC accountable,” the
official said.
The United States and China have al-
ready been at loggerheads over trade, Chi-
na’s military buildup, disputes about the
South China Sea, a crackdown on democ-
racy activists in Hong Kong and treatment
of the Uyghurs in the Xinjiang region.
Blinken cited the Justice Department
indictments as an example of how the
United States will impose consequences.
The defendants and officials in the
Hainan State Security Department, a re-
gional state security office, tried to hide
the Chinese government’s role in the in-
formation theft by using a front company,
according to the indictment.
The campaign targeted trade secrets
in industries including aviation, defense,
education, government, health care, bio-
pharmaceutical and maritime industries,
the Justice Department said.
Victims were in Austria, Cambodia,
Canada, Germany, Indonesia, Malay-
sia, Norway, Saudi Arabia, South Africa,
Switzerland, the United Kingdom and the
United States.
“These criminal charges once again
highlight that China continues to use cy-
ber-enabled attacks to steal what other
countries make, in flagrant disregard of its
bilateral and multilateral commitments,”
Deputy US Attorney General Lisa Mona-
co said in the statement.
 t u e s d a y j u ly 2 0 , 2 0 2 1
Robinhood
sets sights on
a US$35 bil
valuation in
its IPO
by Crystal Tse, Annie Massa,
Katie Roof & Nancy Moran
Bloomberg
(July 19): Robinhood Markets Inc is seek-
ing a valuation of US$35 billion in its
initial public offering, just short of the
highest analyst projections, as the free
trading app advances toward a debut like-
ly to draw in buyers from its own novice
investor base.
The company at the centre of this
year’s meme stock frenzy will market 55
million shares for US$38 to US$42 each,
according to a filing Monday with the
US Securities and Exchange Commis-
sion. Bloomberg Intelligence in March es-
timated that Robinhood could be valued
in a range of US$13 billion to US$40
billion.
As a publicly traded brokerage, Rob-
inhood will join the ranks of Coinbase
Global Inc, a cryptocurrency trading plat-
form that debuted this year and is cur-
rently worth almost US$47 billion, and
industry heavyweight Charles Schwab
Corp, which bought competitor TD
Ameritrade last year and has a market
value of about US$130 billion.
(July 19): Online mall Bukalapak is set to
raise about 22 trillion Indonesian rupiah
($1.5 billion) in the country’s largest-ever
initial public offering that presages a wave of
domestic tech listings, according to people
familiar with the matter.
The e-commerce marketplace is planning
to price its upsized offering of 25.77 billion
shares at 850 rupiah apiece, said the people,
who asked not to be identified as the infor-
mation is private.The shares were marketed
at 750 rupiah to 850 rupiah each.The retail-
er would be valued at about $6 billion after
the offering was expanded, the people said.
Deliberations are ongoing and an an-
nouncement on the final pricing could come
as soon as Tuesday, one of the people said.
A representative for Bukalapak declined to
comment.
Bukalapak, which is backed by Microsoft
Corp. and Jack Ma’s Ant Group Co., is going
public as the region’s startup scene matures
18 TheEdge CEO morning brief
w o r l d
Bloomberg
Robinhood caught
on during the
coronavirus pandemic
as homebound young
people turned to online
trading to pass the time
and make money.
With plans to raise more than US$2.2
billion, Robinhood’s IPO would be the
fifth-biggest on a US exchange in 2021.
This year has already set an all-time re-
cord with 648 companies raising a total
of about US$218 billion, according to
data compiled by Bloomberg.
Click here to read the full story
Bukalapak
poised to raise
US$1.5b in
landmark IPO
by Elffie Chew & Manuel Baigorri
Bloomberg
and investors seek exits. GoTo, the country’s
biggest tech startup valued at $18 billion, is
expected to tap local stock markets while the
region’s most valuable private firm, Grab
Holdings Inc., aims to go public via a blank-
check firm in the second half of the year.
Click here to read the full story
In brief
PropertyGuru near US$1.8b
merger with Peter Thiel SPAC
(July 19): Singapore’s online real estate
firm PropertyGuru Pte is nearing a
deal to go public through a merger with
Bridgetown 2 Holdings Ltd, the blank-
check company backed by billionaires
Richard Li and Peter Thiel, according to
people with knowledge of the matter. A
transaction could value the combined
entity at about US$1.8 billion, the people
said, asking not to be identified because
the matter is private. The deal will also
include a private investment in public
entity, or PIPE, of about US$100 million to
US$150 million, anchored by institutional
investors including Australia’s REA Group
Ltd, the people said. The special purpose
acquisition company raised about US$300
million in a US initial public offering in
January and its shares were trading
close to their debut price of US$10 last
week. The blank-check firm set out in its
prospectus that it will focus on targets
in the so-called “new economy sectors”
including technology, financial services
or media in Southeast Asia. Founded
by entrepreneurs Steve Melhuish and
Jani Rautiainen in 2007, PropertyGuru
has become a household name in the
property-crazed Singapore. The real
estate marketplace also has operations in
countries including Vietnam, Indonesia,
Malaysia and Thailand. — Bloomberg
Click here to read the full story
bloomberg
Fruit producer Dole targets US$2.1
billion valuation in US IPO
Dole plc said on Monday it planned to
raise as much as US$598 million in an
initial public offering (IPO) on the New
York Stock Exchange, aiming a valuation
of more than US$2.1 billion for the fruit
and vegetable grower. — Reuters
Click here to read the full story
 t u e s d a y j u ly 2 0 , 2 0 2 1
Bill Ackman
rejigs Universal
deal after
regulators probe
SPAC plan
by Sudip Kar-Gupta, Sarah White
& Mathieu Rosemain
Reuters
PARIS (July 19): Billionaire investor Bill
Ackman will buy up to 10% of Vivendi’s
Universal Music Group through his main
hedge fund, rather than a special-purpose
acquisition company (SPAC), after inves-
tors and regulators questioned his use of
a SPAC.
The investment comes ahead of a plan
to list and spin off 60% of Universal to
Vivendi shareholders, as the French group,
controlled by tycoon Vincent Bollore, cash-
es in on the streaming boom and the lure
of stars such as Taylor Swift.
The transaction has attracted big inves-
tors including China’s Tencent, but Ack-
man’s decision to use a SPAC to buy a
minority stake raised eyebrows from the
get-go, after deviating from the usual in-
vestment pattern for such vehicles.
Helped by easy monetary conditions,
Wall Street and European markets are ex-
perienced a boom in these so-called blank-
cheque companies, designed to snap up
entire private firms and take them public
without the more onerous rules attached
to listings.
Pershing Square Tontine Holdings
(PSTH), Ackman’s SPAC, said in a state-
ment the US Securities and Exchange
Commission (SEC) had raised issues
with several elements of the deal, with-
BENGALURU (July 19): Chinese tech
giant Tencent Holdings will buy video
game company Sumo Group in a deal
that values the British firm at 919 million
pounds ($1.27 billion), the companies said
on Monday.
Sumo’s shareholders will get 513 pence
in cash per share, Tencent said. The of-
fer is at 43% premium to the Sumo’s last
closing price of 358 pence. The share has
risen multifold since its listing on LSE’s
junior market AIM in 2017 at 100 pence.
Tencent has an 8.75% stake and is the
second-biggest stakeholder in the compa-
ny, which has 14 studios in five countries
with more than 1,200 employees.
19 TheEdge CEO morning brief
w o r l d
out disclosing them.
Some investors had also queried the
transaction, with PSTH shares falling 18%
since it was announced, despite Universal’s
appeal. Ackman had described Universal as
an “incredibly iconic, super durable busi-
ness”, and his investment had valued the
music label group at €35 billion (US$41
billion) including debt.
“We underestimated the reaction that
some of our shareholders would have to the
transaction’s complexity and structure,”
Ackman said in a PSTH release.
Pershing Square, Ackman’s main hedge
fund, will now replace PSTH as the in-
vestor.
“Our counterparty was not left at the
altar,” Ackman added.
The overhaul is a blow to the biggest-ev-
er SPAC, after PSTH raised US$4 billion
in an initial public offering last summer.
It said it now had 18 months to find an-
other target, or it has to return funds to
its investors.
Amid the SPAC deal frenzy, the SEC
has begun to probe several aspects of the
vehicles, including the way they are mar-
keted and project growth forecasts, and
potential conflicts of interest among their
advisers. Jefferies analysts said the US$4
billion Universal investment would be a big
Tencent to buy
British video
game company
Sumo in
US$1.3b deal
by Muvija M
Reuters
Bill Ackman
bloomberg
outlay for Ackman’s main Pershing Square
fund, but could be co-financed.
Ackman has revealed a personal motiva-
tion for supporting Universal too, linked to
his songwriting grandfather, Herman Ack-
man, who sold lyrics that are now owned
by the music group.
Vivendi said in a separate statement that
Pershing Square’s investment would likely
amount to between 5% and 10% of Uni-
versal’s capital, adding it would open it up
to other investors to make up the shortfall
were it less than 10%.
Read also:
Ermotti-led SPAC to help Italy’s Zegna
go public in US$3.2 billion US deal
“Ermenegildo Zegna has agreed to list in
NewYork this year by combining with a
US special-purpose acquisition company
(SPAC) in a deal that gives the Italian
luxury fashion group an enterprise value
of US$3.2 billion. It is the latest example
of an Italian family-owned fashion
business seeking outside investors to bolster
its finances and compete more globally,
after the industry was hit hard by the
coronavirus crisis.”
Click here
reuters
“The Board of Sumo firmly believes
the business will benefit from Tencent’s
broad videogaming eco-system, proven in-
dustry expertise and its strategic resourc-
es,” Sumo’s non-executive chairman Ian
Livingstone said.
 t u e s d a y j u ly 2 0 , 2 0 2 1
(July 19):Teleconferencing services provid-
er Zoom Video Communications Inc has
struck a deal to buy cloud software provider
Five9 Inc in an all-stock transaction valued
at about $14.7 billion, the company said
on Sunday.
Five9 will become an operating unit of
Zoom and its chief executive, Rowan Trol-
lope, will become a president of Zoom and
stay on as chief of the unit after the deal,
which is expected to close in the first half
of 2022, it said in a statement.
Under the pact, approved by the boards of
JPMorgan hoards
cash as Dimon
expects rates to rise
by David Henry
Reuters
NEWYORK (July 19): Jamie Dimon’s opti-
mism about the economy is costing JPMor-
gan Chase & Co money, the bank’s latest
financials show.
The CEO said this week the country’s
largest lender continues to stockpile cash
instead of investing it in securities, such as
U.S.Treasuries and mortgage-backed bonds,
which pay more than cash deposits.
How the country’s largest lenders manage
an unprecedented glut of cash weighing down
their balance sheets will be important in sepa-
rating winners from losers in coming quarters
as uncertainty grows over the inflation and
interest rate outlook, according to analysts.
“The balance sheet mix will be a key driv-
er for the stocks as we move into 2022,” Da-
vid Konrad, an analyst at Keefe, Bruyette &
Woods, wrote in a recent report to clients.
“In our view, the risk/reward favors holding
cash and under- earning in this environment.”
JPMorgan is waiting for the chance to
buy securities with higher yields once ex-
ceptionally strong economic growth kicks
in and drives up inflation and interest rates,
Dimon and Chief Financial Officer Jeremy
Barnum told analysts on Tuesday.
“You may have growth in the second half
this year that’s stronger than it’s ever been in
the United States of America,” Dimon said in
a call with analysts on Tuesday.
The yield on 10-year Treasury notes, at
around 1.35% versus 1.75% in March, could
climb to 3%, Dimon added.
Dimon’s comments came after JPMor-
gan posted quarterly financials on Tuesday
that showed its average cash balance held on
deposit at central and other banks increased
by $89.6 billion while it added only $2.6
20 TheEdge CEO morning brief
w o r l d
Zoom to buy
cloud software
provider Five9
in US$15b deal
by Kanishka Singh
Reuters
billion of investment securities.
JPMorgan made 0.06% on its cash while
its securities paid 1.31%, its reports showed.
In contrast, Bank of America Corp’s re-
sults released on Wednesday showed it has let
its cash decline by $31 billion while it added
$107.3 billion to its securities holdings.
“The reality is that we generated $80 bil-
lion deposit growth, and we’ve got to put it to
work,” CEO Brian Moynihan told analysts.
“We’re not timing the market or betting.”
JPMorgan’s deposits grew by nearly $100
billion during the quarter.
Trade-offs
Cash from government stimulus and Feder-
al Reserve programs continues to pour into
the financial system, dampening demand
for bank loans. U.S. financial markets are
also wrestling with a spike in inflation, which
they believe could prompt the U.S. Federal
Reserve to raise interest rates.
During this quarter, analysts have pressed
bank executives about their cash and securities
mix because of how important it is for profits.
Banks often hedge their positions with deriva-
tives, making the analysis more difficult.
Executives have warned of tradeoffs in the
decision on how much cash to accumulate
until rates rise, and how much to invest in
securities now.
Considerations include ensuring liquidi-
ty for customers who take deposits back and
guarding against hits to regulatory capital from
declines in the value of purchased securities.
Speaking before Congress on Wednesday,
Fed Chair Jerome Powell said recent price
spikes were associated with the post-pan-
demic reopening and will fade.
The central bank is staying the course,
he said, with an inflation target of 2% and
some time before it will be in a position to
tighten monetary policy. Last month, Fed
policy makers on balance projected inflation
would climb to 3.4% this year and then fall
back to 2.1% next year.
JPMorgan’s decision to stockpile cash was
“purely discretionary,” Dimon said at a con-
ference last month. “You’ll find out one day
whether we made the right decision or not.”
both companies, Five9 stockholders will re-
ceive 0.5533 shares of Class A common stock
of Zoom for each share of Five9, it added.
Based on the July 16 closing share price
of Zoom Class A common stock, this rep-
resents a price of $200.28 for each share of
Five9 common stock, and an implied deal
value of about $14.7 billion.
Zoom has become a household name and
investor favorite in the year since the coro-
navirus pandemic, as businesses and schools
adopted its services to hold virtual classes,
office meets and socialise.
Americans who
helped Ghosn
escape from Japan
to be sentenced
by River Davis & Tsuyoshi Inajima
Bloomberg
(July 19): The father-son team that
smuggled Carlos Ghosn out of Japan
in a large musical-equipment case was
sentenced to time in prison for their
role in helping Nissan Motor Co.’s for-
mer chairman flee trial in 2019.
Michael Taylor, 60, the father and
a former U.S. Green Beret, received
a sentence of two years by the three-
judge panel on Monday. His 28-year-
old son, Peter Taylor, received a one-
year eight-month sentence, they said.
Both pleaded guilty last month to
charges of aiding Ghosn’s escape to
Beirut, a development that was just
as shocking as the November 2018 ar-
rest of the auto executive for alleged
financial crimes. With Ghosn out of
reach — Lebanon doesn’t extradite
its citizens — the pair has become a
proxy for Ghosn and his case. So has
Greg Kelly, a former Nissan director
who was detained on the same day as
his boss and is facing trial in Japan.
Ghosn and Kelly have denied allega-
tions of understating the auto execu-
tive’s compensation.
After spending more than a year in
Japan and free on bail, Ghosn made
his way to Osaka’s airport on Dec. 29,
2019, by bullet train. From there, he
was rolled on to a private jet that flew
to Istanbul, where he switched planes
and made his way to Beirut.
Click here to read the full story
 t u e s d a y j u ly 2 0 , 2 0 2 1
China’s luxury retirement homes
draw millions from investors
by Charlie Zhu & Emma Dong
Bloomberg
SHANGHAI (July 19): Retiree William
Tang recently decided to swap his life in
downtown Shanghai for a luxury elder-care
development in the city’s far west, paying
US$220,000 to rent a two-bedroom apart-
ment for 15 years.
“It is more like a resort,” Tang said af-
ter viewing the Ardor Gardens showroom,
which highlights amenities including an in-
door swimming pool, yoga rooms, wine tast-
ings and round-the-clock care.
For a growing number of Chinese and
international investors, elder-care develop-
ments like Ardor Gardens are becoming ir-
resistible bets. Money is pouring into the
sector amid renewed attention on just how
quickly China is aging.
Sydney-based property and infrastruc-
ture company Lendlease Corp Ltd, which
put US$280 million into Ardor Gardens, is
among investors that see the policy environ-
ment becoming more favorable as the Chi-
nese government tackles its demographic
challenges.
“The market will likely be completely dif-
ferent 10 years from now,” said Lendlease’s
China President Ding Hui. “If you wait for
10 years before starting to think of buying
land, learning, training up a team and de-
veloping a business model, very likely you
would have missed the opportunity.”
According to China’s latest population
data, the number of residents aged 60 and
above has risen 47% over the past decade
to 260 million, more than 18% of its total
population. By 2050, it is forecast to nearly
double to almost 500 million.
Lendlease is in competition with estab-
lished domestic players including blue-chip
insurers, private-equity firms and property
developers. Dozens of foreign investors have
also piled in in recent years, including Singa-
pore’s state-owned Temasek Holdings Pte,
US health-care investment firm Columbia
Pacific Management and Fortress Invest-
ment Group.
More are looking to join the fray. Chinese
investment giant Citic Capital is aiming to
build a handful of elder-care projects with
partners in major cities over the next few years,
said the head of the firm’s real estate divi-
sion Stanley Ching. New China Life Insur-
ance Co meanwhile just started selling a new
280,000 square meter (3 million square foot)
elderly-care complex in a suburb of Beijing —
roughly the size of 40 standard soccer fields.
21 TheEdge CEO morning brief
w o r l d
Many of these companies have yet to
make money from the senior-care business,
but they’re betting that growing demand for
such facilities and changing societal norms in
China will deliver returns in the longer term.
On the policy side, the government is
drafting detailed plans to strengthen the sen-
ior-care sector, with a focus on expanding
basic and affordable services.These include
increasing the number of beds at nursing
homes, and putting resources into training
much-needed professionals.
“China’s high-end senior care market has
not entered the phase of high-speed growth,
but it has certainly gotten started,” said Ye
Liming, a director at the Shanghai Senior
Service Industry Association.
The country’s demographic trajectory
is also upending deep-set traditions that
have impeded the popularity of care homes.
Though children in China have long been
bound by the duty to care for their elderly
parents, many families live far apart following
years of labor migration and urbanization.
The problem is exacerbated by the fact that
many soon to enter retirement only have one
child to rely on due to China’s one-child
policy, which was eased in 2016.
Despite these demographic shifts, indus-
try estimates predict that only around 3%
of Chinese seniors are willing or are able to
afford the sorts of services that Lendlease is
offering. The vast majority are expected to
stay at home or at government-subsidized
nursing homes. Though that’s still a large
enough number given China’s massive el-
derly population, the low figure does signify
a difficulty for investors.
As of July, Lendlease had filled about half
of the first 100 or so apartments at Ardor
Gardens that it began marketing last Sep-
tember. Official sales began in December.
In a recent report, consulting firm Qian-
zhan Industry Research Institute noted that
the occupancy rate of private elderly homes,
mostly located in wealthy areas such as the
Yangtze River Delta, is hovering at 37%-
48%, far below the 85% they need to break
even. Customers are deterred in part by the
cost, due to high land prices and the absence
of a real estate investment trust market — a
key long-term funding channel for elder-care
property investors in developed markets like
North America, Europe and Japan.
Lendlease’s Ding believes that getting
dozens of seniors to part with their money
for a rental property in Ardor Gardens is
significant, given the pandemic. More nota-
ble, he thinks, is that the mentality that sen-
iors should spend their savings on owning
a property in order to pass it down to the
next generation — rather than on their own
leisure — could finally be starting to shift.
To that end, Tang, who is in his 70s and
anticipates moving in to Ardor Gardens in
September, is the sort of retiree that investors
are banking on — cash-rich, open-minded,
and looking to have fun in their twilight years.
“Our purpose is not to just spend mon-
ey buying a property,” said Tang. “It’s for a
more exciting second life.”
 t u e s d a y j u ly 2 0 , 2 0 2 1
Singapore
prepares to swap
its oil hub status
for greener future
by Andrew Janes & Dan Murtaugh
Bloomberg
(July 19): Royal Dutch Shell Plc announced
late last year it would slash capacity by half
at its biggest oil refinery. For Singapore,
where the plant has been a mainstay of the
economy for six decades, it marked a turn-
ing point in one of the most successful bets
on fossil fuels in history.
The plant on Bukom Island is part of a
massive refining and petrochemical indus-
try built largely on reclaimed islands just
off the city-state. In tandem with the cargo
vessels they fueled, the refineries helped
drive Singapore’s economic success after
independence, attracting billions in invest-
ment and spawning businesses from plastics
to rig construction and finance.
“We’ve come a long way as a result of the
energy and chemical sector,” said Tan See
Leng, Singapore’s labor minister and sec-
ond minister for trade and industry. “The
key thing is not to completely sort of move
away, but to see how we can pivot, how we
can transform.”
To that end, the government this year
released the Singapore Green Plan 2030,
setting out a path for the city-state to be-
come a leading regional hub for carbon
trading, green finance, consulting and risk
management and other services. State in-
vestor Temasek Holdings Pte., along with
LONDON (July 19): Sustainable invest-
ments total $35.3 trillion, or more than
a third of all assets in five of the world’s
biggest markets, a report from the Global
Sustainable Investment Alliance on Mon-
day showed.
Investors are increasingly driven by en-
vironmental, social and governance-relat-
ed (ESG) factors that traditionally have
not been captured in a company’s balance
sheet, but that can influence future returns.
The GSIA, whose member bodies track
growth in their region, said professionally
managed assets, using a broad gauge of
what it means to invest sustainably, ac-
count for 36% of total assets under man-
agement.
While some assessments of industry
growth focus on retail-focused mutual
funds with a specific sustainability man-
22 TheEdge CEO morning brief
w o r l d
the Singapore Exchange, Standard Char-
tered Plc and DBS Group Holdings Ltd.
announced in May a plan to set up a global
exchange for high-quality carbon credits.
The city also offers a modern base with
a skilled workforce from which new energy
companies can run their operations in the
region.Vena Energy Capital Pte., one of the
largest independent renewable power gen-
erators in Asia-Pacific, with wind and solar
projects stretching from Australia to India,
established its headquarters in a modernist
glass-and-steel tower in the city’s financial
center, despite having no other operations
in the country.
“Given the regulatory transparency that
Singapore has, it gives comfort to inves-
tors,” said Vena Chief Executive Officer Ni-
tin Apte. “That was true in the past and
will be true in the future with renewables.”
But Singapore’s switch from black gold
to green energy is a difficult balancing act.
In 2019, the city was the world’s fourth-big-
gest exporter of refined petroleum, and fu-
els and chemicals accounted for around
23% of its total merchandise trade, ac-
Sustainable
investments
account for more
than a third of
global assets
by Simon Jessop
Reuters
date, the GSIA also includes wholesale and
institutional assets.
The report also includes money invested
using a process that assesses the risk and
return impact of issues, such as climate
bloomberg
cording to data from the World Bank and
the Observatory of Economic Complexity.
It’s still a regional trading center for coal,
natural gas and oil products and supports
dozens of finance houses that specialize in
commodities. More than 100 global chem-
ical companies have operations in the city.
In the energy sector that meant leverag-
ing its position on one of the world’s bus-
iest shipping routes, between the Middle
East and the major economies in East Asia.
That won’t necessarily help its status as
an energy hub for renewables like solar and
wind that tend to be located in consuming
countries, but it could still be an asset for
hydrogen, which is gaining momentum as
a possible emissions-free fuel for transpor-
tation and other energy supplies.
More than 30 countries have released
hydrogen roadmaps, according to a report
by the Hydrogen Council and McKinsey &
Co. But Singapore isn’t yet ready to com-
mit to a strategy, Tan said.
Click here to read the full story
change, even if the strategy’s mandate does
not have a formal, explicit sustainability
focus, so-called ‘ESG integration’.
The biennial industry survey looked at
assets in the United States, Europe, Aus-
tralasia, Japan and Canada, using data
from end-2019 for all regions except Japan,
where the data was to end-March 2020.
Since the last report, total assets across
the markets had risen 15%, the report said.
“This growth is being fuelled by rising
consumer expectations, strong financial
performance and the increasing material-
ity of social and environmental issues —
from biodiversity to racial equity to climate
change,” Simon O’Connor, chair of the
GSIA, said.
Canada and the United States saw the
strongest growth over the last two years, the
report said, at 48% and 42%, respectively.
 t u e s d a y j u ly 2 0 , 2 0 2 1
M A R K E T S
CPO RM 4,339.0039.00 OIL US$ 71.71-1.88 RM/USD 4.2253 RM/SGD 3.1040 RM/AUD 3.1073 RM/GBP 5.7915 RM/EUR 4.9714
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
CTOS Digital Bhd 366.4 0.520 1.620 0.00 3564.0
Saudee Group Bhd 248.4 -0.04 0.2 -52.03 142.5
Kanger International Bhd 209.7 0.005 0.075 -48.28 209.7
Ramssol Group Bhd 153.4 0.075 0.670 0 -
SerSol Bhd 124.3 0.145 0.480 146.15 103.4
Serba Dinamik Holdings Bhd 122.5 -0.015 0.435 -75.28 1613.7
Dagang NeXchange Bhd 117.4 0.015 0.765 240 2148.5
MMAG Holdings Bhd 110.1 -0.010 0.130 -71.74 152.2
Privasia Technology Bhd 92.1 0.005 0.24 50 147.4
OPCOM Holdings Bhd 69.2 0.065 0.555 44.16 98.4
BIG Industries Bhd 67.9 0.06 1.1 141.76 58.2
AT Systematization Bhd 63.8 0 0.065 -64.86 283
Pasukhas Group Bhd 58.4 -0.020 0.105 -70.90 22.3
Ta Win Holdings BHD 54.9 0.01 0.15 100 511.5
UCrest Bhd 44.8 -0.01 0.33 112.9 205.2
Kejuruteraan Asastera Bhd 44.1 0.025 0.88 50.86 1488.8
Hiap Teck Venture Bhd 42.1 0.01 0.53 15.22 914.1
Mag Holdings Bhd 41.4 0.005 0.21 5 158.9
Permaju Industries Bhd 34.4 0.01 0.12 -31.43 111.3
Systech Bhd 33.6 0.02 0.305 52.5 105.5
Data as compiled on Jul 19, 2021 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
CTOS Digital Bhd 1.620 47.270 366359.3 0.00 3564.0
SerSol Bhd 0.48 43.28 124306.3 146.15 103.4
Compugates Holdings BHd 0.020 33.330 538.7 0.00 61.4
Eduspec Holdings Bhd 0.020 33.330 865.9 0.00 48.5
AE Multi Holdings Bhd 0.060 16.120 12999.5 -50.87 57.7
LYC Healthcare Bhd 0.290 16.000 11093.6 -12.12 125.1
Choo Bee Metal Industries Bhd 2.170 14.810 4453.0 31.52 283.7
Sanichi Technology Bhd 0.040 14.290 523.4 -85.84 56.1
OPCOM Holdings Bhd 0.555 13.270 69238.2 44.16 98.4
Ramssol Group Bhd 0.670 12.610 153393.7 0.00 -
Reach Energy Bhd 0.090 12.500 452.6 -10.00 98.7
Pekat Group Bhd 0.765 11.680 24959.1 0.00 493.4
China Ouhua Winery Holdings 0.05 11.11 31.3 -16.67 33.4
CME Group BHD 0.050 11.110 490.4 -16.67 48.4
TechnoDex Bhd 0.150 11.110 15710.1 -52.38 121.1
LTKM BHD 1.020 10.270 127.4 10.87 132.7
Top Builders Capital Bhd 0.055 10.000 7354.4 -52.17 34.6
Heng Huat Resources Group 0.885 9.260 1185.0 259.91 122.8
Permaju Industries Bhd 0.120 9.090 34370.7 -31.43 111.3
Hextar Industries Bhd 0.305 8.93 10711.1 1.67 56.7
Data as compiled on Jul 19, 2021 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
ViTrox Corp Bhd 16.68 0.72 429.4 13.47 7876.5
CTOS Digital Bhd 1.62 0.52 366359.3 0 3564
Heineken Malaysia Bhd 22.2 0.42 194.2 -3.56 6706.6
Carlsberg Brewery Malaysia 21.48 0.36 127.7 -7.57 6567.5
Choo Bee Metal Industries Bhd 2.17 0.28 4453 31.52 283.7
Kesm Industries Bhd 11.4 0.2 8.4 -16.05 490.4
Chin Teck Plantations BHD 6.7 0.18 1 0.14 612.1
SerSol Bhd 0.48 0.145 124306.3 146.15 103.4
Cheetah Holdings Bhd 2.21 0.14 1380.9 333.33 253.8
TIME dotCom Bhd 14.28 0.12 162.4 9.33 8635.3
Malaysia Smelting Corp Bhd 2.1 0.12 1346.9 46.85 840
Southern Acids Malaysia BHD 3.8 0.11 4 0 520.3
Lotte Chemical Titan Holding 2.88 0.11 4249.5 3.97 6559.4
Ann Joo Resources Bhd 2.19 0.1 4026.9 39.49 1186.9
Malayan Cement Bhd 2.84 0.1 30 13.6 2654.5
LTKM BHD 1.02 0.095 127.4 10.87 132.7
KLCCP Stapled Group 6.8 0.09 12.1 -3.95 12276.3
Sime Darby Plantation Bhd 3.69 0.09 2395.6 -25.7 25519
Concrete Engineering Products 0.99 0.08 784.5 57.14 73.9
Pekat Group Bhd 0.765 0.08 24959.1 0 493.4
Data as compiled on Jul 19, 2021 Source: Bloomberg
23 TheEdge CEO morning brief
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 34,687.85 -299.17 -0.86 INDONESIA 6,017.39 -55.12 -0.91
S&P 500 4,327.16 -32.87 -0.75 JAPAN 27,652.74 -350.34 -1.25
NASDAQ 100 14,681.38 -113.31 -0.77 KOREA 3,244.04 -32.87 -1.00
FTSE 100 6,876.83 -131.26 -1.87 PHILIPPINES 6,587.20 -106.63 -1.59
AUSTRALIA 7,285.98 -62.14 -0.85 SINGAPORE 3,111.20 -41.10 -1.30
CHINA 3,539.12 -0.18 -0.01 TAIWAN 17,789.25 -106.00 -0.59
HONG KONG 27,489.78 -514.90 -1.84 THAILAND 1,556.01 -18.36 -1.17
INDIA 52,553.40 -586.66 -1.10 VIETNAM 1,243.51 -55.80 -4.29
Data as compiled on Jul 19, 2021 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
Lambo Group BHD 0.010 -33.33 13369.9 -66.67 49.9
K Seng Seng Corp Bhd 0.940 -29.85 6047.5 60.68 108.3
Saudee Group Bhd 0.200 -16.67 248447.8 -52.03 142.5
Nexgram Holdings Bhd 0.025 -16.67 4874.5 -44.44 80.8
Pasukhas Group Bhd 0.105 -16.00 58378.3 -70.90 22.3
Orion IXL Bhd 0.060 -7.69 344.6 -25.00 51.4
Asdion Bhd 0.250 -7.41 8291.8 21.95 32.0
MMAG Holdings Bhd 0.130 -7.14 110119.5 -71.74 152.2
Idimension Consolidated Bhd 0.065 -7.14 1.5 -18.75 17.7
Barakah Offshore Petroleum 0.065 -7.14 1247.9 18.18 54.3
M3 Technologies Asia Bhd 0.065 -7.14 1598.0 0.00 58.1
Berjaya Land Bhd 0.280 -6.67 5780.1 47.37 1377.7
Digistar Corp Bhd 0.070 -6.67 1883.0 -23.11 54.7
Sand Nisko Capital Bhd 1.280 -6.57 10690.4 293.85 132.0
Sinaran Advance Group Bhd 0.075 -6.25 72.0 -70.59 52.8
Green Packet Bhd 0.235 -6.00 2848.5 -44.05 294.1
SC Estate Builder Bhd 0.08 -5.88 1839.5 33.33 83.5
SMTrack Bhd 0.080 -5.88 483.9 -55.56 35.8
Netx Holdings Bhd 0.085 -5.56 243.5 -37.04 71.1
Progressive Impact Corp Bhd 0.175 -5.41 17641.4 59.09 114.7
Data as compiled on Jul 19, 2021 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
Genetec Technology Bhd 16.980 -0.900 607.4 881.50 859.6
Malaysian Pacific Industries 41.700 -0.900 108.0 60.63 8294.0
K Seng Seng Corp Bhd 0.94 -0.4 6047.5 60.68 108.3
Petronas Dagangan Bhd 18.740 -0.300 303.4 -12.43 18617.3
Hong Leong Financial Group 17.660 -0.220 161.2 -2.21 20225.0
Fraser & Neave Holdings Bhd 26.200 -0.160 105.6 -18.33 9609.6
Teo Guan Lee Corp BHD 2.53 -0.14 104.9 130 103.1
Kumpulan H&L High-Tech Bhd 4.090 -0.130 1772.6 182.07 149.6
Widetech Malaysia BHD 3.720 -0.110 343.5 520.00 166.5
Sam Engineering & Equipment 7.300 -0.090 5.1 -0.95 988.1
Sand Nisko Capital Bhd 1.280 -0.090 10690.4 293.85 132.0
Telekom Malaysia Bhd 6.020 -0.080 2770.5 11.28 22717.7
Duopharma Biotech Bhd 2.900 -0.080 1607.2 -14.20 2048.4
Kuala Lumpur Kepong Bhd 19.720 -0.080 421.6 -16.72 21263.8
Unisem M Bhd 7.680 -0.080 525.0 24.27 6194.2
Pecca Group Bhd 4.010 -0.080 952.5 158.22 735.7
UWC BHD 5.460 -0.070 1623.5 11.43 6009.5
Greatech Technology Bhd 6.130 -0.060 853.0 34.73 7674.8
British American Tobacco M’sia 14.660 -0.060 155.1 4.12 4185.9
Hong Leong Bank Bhd 18.24 -0.060 1386.6 0.22 39539.2
Data as compiled on Jul 19, 2021 Source: Bloomberg