Zuraida chides US CBP for hasty action

against Sime Darby Plantation p7

t u e s day, f e b rua r y 1 , 2 0 2 2 w w w. t h e e d g e m a r k e t s. c o m
Issue 324/2022

ceoMorningBrief HOME: Grab completes Jaya Grocer acquisition p4

Analysts warn of long-term impact on Affin Bank’s asset management firm sale p8
Analysts keep ‘buy’ on Tenaga despite lack of clarity on RP3 parameters p10
Toyo Ventures cancels dividend due to insufficient retained earnings p12
WORLD: China manufacturing slips in latest sign of slowing economy p20

i-Serve Online Mall proceeds with judicial

review bid as BNM unfreezes some accounts
Report on Page 4.

reuters

Tech stocks pare gains,

are they attractive
now? Report on Page 6.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2 2 TheEdge CEO morning brief

the edge ceo morning brief published by publisher + . Ho Kay Tat

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h o m e

Covid-19: New
KUALA LUMPUR (Jan 31):The number of boarding school students being admitted to
new Covid-19 cases reported for the fourth the PKRC when there aren’t any suitable

cases show rising

epidemiological week (ME4/2022) from Jan isolation places in a bid to reduce the risk
23-29 increased by 34.6% to 31,980 cases, of infecting other students and the com-

trend in fourth
compared to 23,752 the previous week. munity,” he said.
Health director-general Tan Sri Dr He also said that 106 new clusters were

epidemiological
Noor Hisham Abdullah said the average reported in the fourth ME, of which 81
number of active cases also rose by 14%, were in educational institutions, 19 in work

week of Jan 23-29,

from an average of 40,473 in the third ME places, four in the communities and two
to 46,158 in the fourth ME. in high-risk groups.

“However, the number of fatalities
showed a consistent decline of 27.5%,
down to 74 deaths in the fourth ME com-
pared to 102 in the third ME.
“This decline has been recorded since
ME52/2021. For the record, the last time the
number of weekly deaths was at two digits
was in ME17/2021, namely 95 cases,” he
said in a statement on Monday (Jan 31).
Apart from that, he said the number of
patients requiring treatment in the Inten-
sive Care Unit (ICU) also showed a drop
of 15.5% to 109 cases in the fourth ME,
compared to 129 in the third ME.
Dr Noor Hisham said the average num-
ber of cases requiring respiratory assistance
says Health DG
Bernama
also decreased by 11.5%, with 46 cases in the
fourth ME compared to 52 in the third ME.
On the use of hospital beds, he said the
rising number of Covid-19 cases linked
to the Omicron variant had led to an in-
crease of 3%.
“Apart from that, the use of PKRC
(Low Risk Covid-19 Quarantine and Treat-
ment Centres) also increased by 6% fol-
lowing a rise in the education cluster, with
Meanwhile, Dr Noor Hisham said that
the number of daily Covid-19 cases in the
country dropped to 4,774 on Monday,
compared with 4,915 on Sunday (Jan 30),
taking the cumulative number of infections
to 2,870,758 as at noon on Monday.
He said that of the total number of new
cases, 36 were in categories three, four and
five, while the rest were in categories one
and two.
“Of the 4,774 cases, 152 were imported
cases and 4,622 were local transmissions. A
total of 114 patients are also being treated
in the ICU, with 62 cases requiring respira-
tory assistance,” he said, adding that a to-
tal of 3,232 recoveries were also reported.

Bali reopens to all

(Jan 31): Indonesia will reopen Bali to all Only travelers from select nations were
foreign visitors starting Feb 4, this time re- allowed to fly directly into Bali, while most

tourists from
quiring a shorter quarantine period as the were required to enter Indonesia through
country seeks to revive tourism and sustain airports in Jakarta and Manado.

Feb 4, cuts
economic recovery. From Feb 4, visitors can use direct or
This comes after the nation lifted a ban connecting international flights to come to

on all foreign arrivals and on Feb 4 will re-
duce the quarantine period to five days from
seven for fully vaccinated foreigners, Luhut
Panjaitan, a cabinet minister who also over-
sees the government’s pandemic response,
said on Monday.Those with only one shot of
Covid-19 vaccine must continue to comply
with a seven-day quarantine.
Singapore Airlines Ltd will restart daily
flights to Bali from Feb 16, the carrier sep-
arately said in an e-mail to customers on
Monday. Singapore and Indonesia resumed
quarantine-free travel between the city-state
and the nearby Indonesian islands of Batam
quarantine short
by Grace Sihombing,
Harry Suhartono & Claire Jiao
Bloomberg
and Bintan last week.
Famous for its temples and beaches, Bali
started a limited reopening in October but
requirements including a 10-day quarantine,
a visa with a local sponsor and an interna-
tional health insurance have put off visitors.
the island, Wiku Adisasmito, spokesman at
the country’s Covid-19 Task Force, said on
Monday. The status of Bali’s other require-
ments like a visa with a local sponsor and
a health insurance will be addressed by a
separate regulation soon, he said.
Indonesia’s looser quarantine requirements
come as Covid-19 cases rise. An average of 9,150
new infections in the last seven days through
Monday were reported, from just 190 at the
start of the year. Still, Health Minister Budi
Gunadi Sadikin expects the current wave to
peak in February and hospitalisations to remain
manageable, as most new cases appear mild.

Note: Dear readers, there will be no CEO Morning Brief on Wednesday and Thursday (Feb 2 & 3) as we are taking a break for Chinese
New Year. We will be back on Friday (Feb 4). For the latest news during the holidays, check out https://www.theedgemarkets.com/.
T U E S D AY F E B R U A RY 1 , 2 0 2 2 3 THEEDGE CEO MORNING BRIEF
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
i-Serve Online
Mall proceeds
with judicial
review bid as
BNM unfreezes
some accounts
by Hafiz Yatim
theedgemarkets.com
KUALA LUMPUR (Jan 31): Bank Nega-
ra Malaysia (BNM) has issued a letter to
lift the freezing of some 10 accounts related
to i-Serve Online Mall and its affiliates, fol-
lowing the filing of its judicial review and a
report that appeared on theedgemarkets.com
last Thursday (Jan 27).
It is understood that some 30 bank ac-
counts with the company and its affiliates
remain frozen by the central bank regulator.
A letter from BNM last Friday, sight-
ed by theedgemarkets.com, to the compa-
ny’s solicitors Messrs Chetan Jethwani &
Company revealed that the release of the
funds could be used to pay wages of its
staff which had been affected since the
freezing on Nov 10, 2021.
i-Serve Online Mall had since Nov
22 written to BNM seeking the lifting
of the freeze of the accounts for pay-
ment of salaries, statutory obligations
like SOCSO, EPF and income tax and
its trade, commercial and contractual li-
abilities. However, the central bank kept
mum without providing any reason for
not granting the request.
Last November, 22 premises linked to
i-Serve Online Mall and its related affiliates
across Kuala Lumpur and Selangor were
raided in an operation led by the National
Anti-Financial Crime Centre with BNM
as the lead agency. It is understood that
the pending freezing did not involve the
other agencies which normally form part
of such enforcement action.
4 TheEdge CEO morning brief
h o m e
On Jan 26, i-Serve Online Mall, its
shareholders Datuk Goh Hwan Hua and
Boon Soon Heng, Goh’s wife Datin Neow
Ean Lee, i-Serve Technology & Vacations
Sdn Bhd (ISTV), Advance Digital Ventures
Bhd (ADV) and Trillion Cove Holdings
Bhd (TCH) filed a judicial review appli-
cation in the High Court here.
Goh, whose name recently appeared in
a newly-established ultra low-cost carrier,
owns 31.75% of i-Serve Online Mall. He
is also the group chief executive officer
(CEO) of ADV — where Neow is the ex-
ecutive chairman — as well as the group
CEO of TCH and a director of ISTV.
Boon, also a director of ISTV, holds a
15.87% stake in i-Serve Online Mall.
In the judicial review application, six
respondents were named: BNM, the cen-
tral bank’s financial intelligence and en-
forcement department (FIED) director
Mohd Fuad Arshad, FIED manager Sa-
rah Syamimi Mohd Suhaimi, FIED of-
ficers Muhammad Banjumaswira Ishak
and Maisarah Najla Mansor as well as the
Attorney-General’s Chambers’ Deputy
Public Prosecutor Kamal Baharin Omar.
Seeking court order to quash
authorities’ action
The applicants are seeking leave from the
court for a certiorari order to quash the 14
asset freeze orders that BNM issued on Nov
11 last year under the Anti-Money Launder-
ing, Anti-Terrorism Financing and Proceeds
of Unlawful Activities Act’s (AMLATFPUA)
Section 44, and a mandamus order to com-
pel the respondents to consider their applica-
tions — dated Nov 24 and Dec 8 last year —
to revoke and/or vary the asset freeze orders.
They also want the respondents to fur-
nish them with all correspondence, instru-
ments and records related to the investiga-
tions carried out by BNM, and all search
and seizure warrants and asset freeze or-
ders that are in their possession.
The applicants are also seeking a stay
of the asset freeze orders, pending the dis-
posal of this judicial review application.
Click here to read the full story
Grab
completes
Jaya Grocer
acquisition
by Sulhi Khalid
theedgemarkets.com
KUALA LUMPUR (Jan 31): Grab
Holdings Ltd has completed its ac-
quisition of a majority stake in Jaya
Grocer Holdings Sdn Bhd, a leading
mass-premium supermarket chain
in Malaysia.
In a statement on Monday
(Jan 31), Southeast Asia’s biggest
ride-hailing and delivery firm also an-
nounced the roll-out of GrabPay and
GrabRewards across all Jaya Grocer
physical retail stores, expanding us-
age of Grab’s popular cashless wallet.
“The acquisition comes at a time
of accelerated growth in on-demand
grocery delivery services. Prolonged
movement restrictions and consumer
concerns about safety and hygiene
have led to a boom in adoption of
online grocery shopping,” it said.
Grab added that the online gro-
cery sector in Southeast Asia is es-
timated to grow to US$50 billion
(RM209 billion) in gross merchan-
dise value — the size of the entire
e-commerce market today — at a
10% penetration rate similar to ad-
vanced markets.
Commenting on the acquisition,
Grab group chief executive officer
and co-founder Anthony Tan said
it is the company’s vision to make
on-demand groceries more accessi-
ble for everyone.
“By combining our extensive
on-demand delivery fleet and capa-
bilities, with Jaya Grocer’s strong re-
tail presence and supplier network,
we can have these quality products
delivered to more homes even faster.
“We believe this partnership will
further accelerate the growth of our
grocery delivery business, and we are
excited by the immense opportunity
ahead of us,” he said in a statement.
In December last year, The Edge
reported that Grab was buying over
premium supermarket chain Jaya
Grocer in a deal said to be worth
up to RM1.8 billion, as part of its
expansion into the grocery segment.
 20220125 - CNY CEOMB_FAOL.pdf 1 25/01/2022 1:54 PM

T U E S D AY F E B R U A RY 1 , 2 0 2 2 5 THEEDGE CEO MORNING BRIEF

CM

MY

CY

CMY

K
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
Tech stocks pare gains,
are they attractive now?
by Seah Eu Hen
theedgemarkets.com
KUALA LUMPUR (Jan 31): Technolo-
gy-related stocks became the selling targets
in the recent equity rout as investors started
rejigging their portfolios to price in the like-
lihood of more than one interest rate hike by
the US Federal Reserve and other central
banks in the next 12 months, mainly because
inflation has reared its ugly head.
The big drop in tech stocks, including
those listed on Bursa Malaysia, is a con-
trast to the rally over the past 18 months
and the consensus buy calls made by in-
vestment analysts.
Many local tech stocks have retreated
at least 20% from their peaks. Some such
as JF Technology Bhd, JHM Consolida-
tion Bhd and Mi Technovation Bhd, have
slid more than 40%. [see table]
Based on analysts’ target prices as at
Jan 31, there is ample headroom, which
is as much as 50%, if not more, for the
local stocks to climb, especially after the
recent selldown. [see table]
The average target price for Inari Amer-
tron Bhd, the biggest tech stock in terms of
market capitalisation, is at RM4.54 com-
pared with the closing of RM3.30 on Mon-
day (Jan 31), representing an upside of 38%.
Likewise, Malaysian Pacific Industries
Bhd, the best-performing semiconductor
counter on Bursa in 2021 (it dropped
22.5% from its peak) is 40% below its
average target price of RM55.38, accord-
ing to Bloomberg data.
Meanwhile, Pentamaster Corp Bhd
and Frontken Corp Bhd both have up-
side potential of 43% and 32% respec-
tively, compared with their average target
prices of RM5.82 and RM4.22.
Areca Capital Sdn Bhd CEO Danny
Wong is of the view that the tech bulls are
only taking a breather, and that the already
strong earnings growth among the tech play-
ers will strengthen further, moving forward.
He concurs that the Fed’s latest an-
nouncement has affected the market sen-
timent and prompted investors to take
a “risk-off approach” by trimming their
equity portfolios and hold more cash.
And that has pulled down the valuation
of the tech sector.
He said Areca Capital remains positive on
electrical and electronics (E&E) and tech-re-
lated stocks in the mid to long term. Wong
noted that historical valuation might not be
that good a yardstick for tech stocks.
6 TheEdge CEO morning brief
h o m e
Table 1
Tech stocks pare gains after the rally, are they attractive now?
Name Closing All time % from TTM Forward Market
price high price all time PE PE cap
(RM) (RM) high (times) (times) (RM mil)
Inari Amertron Bhd 3.30 4.22 -21.8 30.5 26.0 12,225.16
Malaysian Pacific Industries Bhd 39.46 50.90 -22.5 26.2 21.1 7,848.45
ViTrox Corp Bhd 8.14 11.07 -26.4 49.4 37.2 7,688.76
Greatech Technology Bhd 5.21 7.50 -30.5 45.7 29.6 6,523.62
D&O Green Technologies Bhd 4.86 6.02 -19.3 58.5 38.0 6,012.51
UWC BHD 4.67 7.07 -33.9 55.4 35.1 5,140.85
Frontken Corp Bhd 3.19 4.18 -23.7 51.0 38.4 5,015.99
Unisem M Bhd 3.10 4.55 -31.8 25.0 18.9 5,000.55
Dagang NeXchange Bhd 0.94 0.99 -4.6 — 14.9 2,966.01
Pentamaster Corp Bhd 4.08 6.71 -39.2 38.5 27.2 2,906.25
Mi Technovation Bhd 2.40 5.16 -53.5 30.8 22.2 2,150.40
Genetec Technology Bhd 2.90 3.82 -24.1 52.3 29.0 1,975.67
JF Technology Bhd 1.20 2.09 -42.5 64.5 — 1,112.47
Globetronics Technology Bhd 1.47 3.18 -53.7 19.0 16.3 984.08
Kelington Group Bhd 1.48 1.83 -19.1 33.3 22.4 951.65
JHM Consolidation Bhd 1.51 2.58 -41.5 28.4 19.1 841.98
Elsoft Research Bhd 0.92 1.17 -21.8 305.3 25.4 618.12
Aemulus Holdings Bhd 0.94 1.25 -25.2 52.8 19.1 624.08
KESM Industries Bhd 11.00 17.37 -36.7 33.5 35.5 473.16
FoundPac Group Bhd 0.565 1.15 -50.9 28 18 305.56
Source: Bloomberg
Table 2
Upside remains on tech stocks
Name Closing Average Upside No of No of No of
price TP Buy Hold Sell
(RM) (RM) (%) calls calls calls
Inari Amertron Bhd 3.30 4.54 38 19 4 0
ViTrox Corp Bhd 8.14 9.20 13 6 2 2
Globetronics Technology Bhd 1.47 2.32 58 7 3 0
Malaysian Pacific Industries Bhd 39.46 55.38 40 8 1 0
Unisem M Bhd 3.10 4.60 48 7 2 0
Greatech Technology Bhd 5.21 8.02 54 8 0 0
Pentamaster Corp Bhd 4.08 5.82 43 6 2 0
Frontken Corp Bhd 3.19 4.22 32 4 2 0
Kelington Group Bhd 1.48 2.06 39 4 1 0
D&O Green Technologies Bhd 4.86 6.78 40 3 1 0
Mi Technovation Bhd 2.40 4.60 91 3 1 0
UWC BHD 4.67 6.63 42 3 0 0
JHM Consolidation Bhd 1.51 2.03 34 1 2 0
KESM Industries Bhd 11.00 14.30 30 1 2 0
Dagang NeXchange Bhd 0.94 1.35 44 1 0 0
Genetec Technology Bhd 2.90 4.30 48 1 0 0
JF Technology Bhd 1.20 2.70 125 1 0 0
Elsoft Research Bhd 0.915 1.18 29 1 0 0
Aemulus Holdings Bhd 0.935 1.50 60 1 0 0
FoundPac Group Bhd 0.565 0.76 35 0 1 0
Source: Bloomberg
“Given the high growth potential, long- By applying today’s prices to the sector’s
term investors usually do not use current future earnings for the next 12 months
metrics but forward valuation.With the vis- would mean that investors are only paying
ible revenue and earnings growth at a much an average of 25 times earnings, according
higher pace, current conventional metrics to Bloomberg data.
may not be a good measure,” he explained. Malaysia holds a significant position in
He foresees that the companies which the semiconductor global supply chain, ac-
could generate strong cash flow and have counting for around 7% of the total global
a high orderbook while being less exposed semiconductor trade and 13% of global ca-
to environmental, social and governance pacity in terms of back-end assembly tests
risks would make good picks. co n ti n u es o n Page 7
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
Zuraida chides
US CBP for
hasty action
against Sime
Darby Plantation
Bernama
KUALA LUMPUR (Jan 31): Plantation
Industries and Commodities Minister
Datuk Zuraida Kamaruddin has chided
the US Customs and Border Protection
(CBP) for its hasty and unwarranted action
against Sime Darby Plantation Bhd (SDP).
“I strongly wish to reiterate that the Ma-
laysian palm oil industry operates under
strict standards in line with the Sustainable
Development Goals of the United Nations.
“The ministry is also working close-
ly with the Ministry of Human Resourc-
es and the Ministry of Environment and
Water to ensure that the country’s palm
oil industry complies with domestic and
international laws and practices,” she said
in a statement on Monday (Jan 31).
The US CBP has issued a Withhold
Release Order (WRO) on palm oil, in-
cluding all crude palm oil and palm ker-
nel oil and derivative products, made
wholly or in part with palm oil traceable
to SDP on Dec 16, 2020.
The US authorities had allegedly estab-
lished that there was reasonable evidence to
demonstrate SDP harvested the fruits and
produced the palm oil using forced labour.
Under the WRO, products can still land in
the US but cannot be traded or processed.
Zuraida said the ministry would seek
further clarification on the issue from the
relevant agencies in the US, so that an im-
mediate solution could be reached.
“For this purpose, the ministry will
work closely with Wisma Putra and the
Ministry of International Trade and
Industry.
“The ministry will also extend full co-
operation to agencies in the US and other
countries so that the country’s palm oil
can be traded freely globally,” she said.
She said the ministry will continue to
work hard to ensure that the long-term
interests of the palm oil industry are safe-
guarded and further assist millions of oil
palm smallholders and other stakeholders.
“I also call on all Malaysians to work
together with the ministry in efforts to
address the anti-palm oil propaganda
by Western countries which is clearly
aimed at bringing down our country’s
palm oil industry,” she said.
7 TheEdge CEO morning brief
h o m e
MIDF: Sime
Darby Plantation
resilient despite
US CBP snag
Bernama
KUALA LUMPUR (Jan 31): MIDF Re-
search (MIDF) believes that the outlook
for Sime Darby Plantation Bhd (SDP) will
remain resilient as the group plans to im-
plement the necessary improvements and
specific action plan upon the completion
of an assessment report by an independent
trade consultancy.
In a note on Monday (Jan 31), MIDF
said the acceleration of the report should
help the Sime Darby group towards peti-
tioning for revocation of a Withhold Re-
lease Order (WRO) by the US Customs
and Border Protection (US CBP).
“We are positive on the appointment of
the independent ethical trade consultancy
as we believe that their expertise will help
to accelerate the auditing process and even-
tually revoke the WRO by the US CBP.
“We also believe that the group’s out-
look will remain resilient as it is planning
f ro m Pag e 6
and packaging, while the E&E sector con-
tributed 39.3% or RM386.29 billion to
Malaysia’s total exports in 2020.
The proliferation of computer chips in
our daily lives from personal devices, such
as smartphones, laptops and wearables to
electric vehicles, and Internet of Things
devices has created an ever-increasing de-
mand for semiconductors. And that will be
the main fuel for the corporate earnings
growth in the sector.
The semiconductor-related sector, gen-
erally, remains the bright spot on Bursa
given the lack of growth catalyst in other
sectors, such as construction and oil & gas.
The world’s largest semiconductor
foundry, Taiwan Semiconductor Man-
ufacturing Co will spend as much as
US$100 billion (RM418.5 billion) in
capital expenditure — spread through
three years between 2021 and 2023 — to
boost capacity. Meanwhile, Intel Corp
also announced in December last year,
that it will be investing US$7 billion in
Penang to expand its advanced semicon-
ductor packaging technology operations
in Malaysia.
How soon these fresh investments will
ease the supply chain shortages, especially
to implement the necessary improvements
and specific action plan upon the comple-
tion of the assessment report,” MIDF said.
On Jan 28, 2022, CBP issued a notice
of finding which determined that certain
SDP palm oil products were produced us-
ing convict, forced or indentured labour.
The notice of finding will see SDP’s
palm oil products seized by port directors
and forfeiture proceedings commenced
against its products.
“We made no adjustments to SDP’s
forward earnings and we leave our earn-
ings forecast for the financial year 2022
(FY22) and FY23 at RM1,384.5 million
and RM1,182.4 million, respectively, at
this juncture.
“We are maintaining our target price
(TP) at RM4.42 per unit,” MIDF added.
Meanwhile, Maybank Investment Bank
(IB) said SDP needs to be transparent in
sharing the findings of the impact assess-
ment report and rectify any shortcomings
at the soonest possible to restore confidence.
“Even as the financial impact to SDP
has been muted thus far, RM9.1 billion in
market cap has been wiped off since the
WRO had been issued.
“While the market appears to have
priced in the worst, we do not rule out pos-
sible negative knee-jerk reaction following
this finding. We maintain a ‘buy’ call and
TP of RM4.47 per unit for SDP,” it said.
Bursa Malaysia Tech Index
vs Nasdaq
Bursa Malaysia Nasdaq
Technology (points)
Index (points)
17,000
105
13,071 13,771
90 14,000
80.38
81.96
75 11,000
Jan 29, 2021 Jan 28, 2022
Source: Bloomberg
with the risk of a prolonged pandemic and
the delayed reopening national borders
are among the variables that determine
the prospects of the tech stocks.
The semiconductor segment is cyclical
in nature — this isn’t the first boom the
industry has had. Will it last longer than
the previous dotCom boom that ended
within two years? It remains to be seen.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
Analysts warn of
long-term impact
on Affin Bank’s
asset management
firm sale
by syafiqah salim
theedgemarkets.com
KUALA LUMPUR (Jan 31): Some ana-
lysts are cautious of the potential long-term
impact on Affin Bank Bhd’s earnings as
well as its return on equity (ROE) arising
from the sale of its entire 63% stake in Affin
Hwang Asset Management Bhd (AHAM).
This is due to the loss of AHAM’s earn-
ings contribution; CGS-CIMB noted that
the asset management unit contributed a net
profit of RM72 million to Affin Bank for the
financial year ending Dec 31, 2020 (FY20).
“Assuming profit contribution of RM88
million from AHAM in FY23F (three-year
CAGR [compound annual growth rate] of
7% in FY21-23F) against interest income of
RM31.9 million (net of tax) from the pro-
ceeds of RM1.4 billion from the divestment
(assuming interest rate of 3%), the deal results
in a decrease of RM56.3 million or 10.7%
in our projected FY23F net profit (NP) for
Affin Bank,” said the research house’s analyst
Winson Ng in a note on Monday (Jan 31).
Last Friday (Jan 28), Affin Bank via its
100%-owned subsidiary Affin Hwang In-
vestment Bank (AHIB) signed an agree-
ment to dispose of its stake in AHAM to
Starlight Asset, an investment holding com-
pany incorporated by funds managed by
CVC Capital Partners for RM1.42 billion.
“The group will recognise profit from di-
vestment of RM1.07 billion for the sale of its
63% stake in [AHAM] to CVC.The dispos-
al will allow the group to realise a premium
KUALA LUMPUR (Jan 31): Public Mu-
tual Bhd, the unit trust management arm
of Public Bank Bhd, has declared distri-
butions amounting to more than RM65
million for 11 funds for the financial year
ended Jan 31, 2022.
In a statement on Monday, the compa-
ny said a gross distribution of 4.25 sen per
unit has been declared by Public Enhanced
Bond Fund, followed by 2.16 sen per unit
by Public Money Market Fund — Class
A; one sen per unit for Public Index Fund
and PB Dividend Builder Equity Fund; 0.8
sen per unit for Public Islamic Emerging
Opportunities Fund; 0.6 sen per unit for
Public Emerging Opportunities Fund and
8 TheEdge CEO morning brief
h o m e
Affin Bank Bhd’s rating
Stockbroker Recommendation Target price (RM)
Hong Leong Investment Bank Research
TA Securities Research
MIDF Research
UOB KayHian Research
Kenanga Research market perform 1.65
RHB Research
CGS-CIMB Research
Source: Bloomberg
based on the consideration, which represents
a historical price to AUM [asset under man-
agement] and PE [price-earnings] multiple
of 3.1% and 19.7 times respectively, based
on [AHAM’s] audited financial statements
for the financial year ended Dec 31, 2020
[FY20],” said Affin Bank in a statement.
Ng said the deal did not come as a sur-
prise, noting that Affin Bank has been ex-
ploring various options to improve its cap-
ital ratios, including asset sales.
“We are encouraged that the stake is to be
sold at high valuations of CY20 P/E of 19.7x
and price-to-AUM of 3.08%, which are above
the average of 15.2x and 2.64% respective-
ly, of past M&A [mergers and acquisitions]
transactions involving asset management com-
panies.We do not expect the bank to pay out
the proceeds as special dividends but the in-
crease in its CET1 (Common Equity Tier 1)
capital ratio following the deal could raise its
dividend payout in the longer term,” said Ng.
According to Hong Leong Investment Bank
(HLIB) Research, AHAM’s contribution to
Affin Bank is 20% to 30%, and the loss of this
part of the business could reduce the bank’s
ROE by 100 to 150 basis points (bps) in FY23.
“We understand Affin’s main intention is
to plough back the sale proceeds to drive its
core banking business. However, we think this
is a slow way to plug the gap left by AHAM.
Moreover, ROE would also be hit by the en-
larged equity base, resulting from the RM1
billion disposal gain (estimated to be 40bps).
“Nevertheless, Affin did not rule out the
potential for special dividends, which in turn
Public Mutual
declares
distributions of
over RM65m for
11 funds
by syafiqah salim
theedgemarkets.com
buy
buy
2.25
2.20
neutral
hold
1.87
1.80
neutral
reduce
1.65
1.27
Affin Bank Bhd
Vol (mil) RM
8 2.0
6
RM1.78
4
2
RM1.64
0 1.5
Jan 8, 2021 Jan 31, 2022
Source: Bloomberg
can help to ease ROE pressure (we calcu-
lated every RM100 million payout or 2.6%
dividend yield, may lift ROE by 4bps),” said
HLIB’s analyst Chan Jit Hoong.
Separately, the analyst noted that the
bank is also redeeming its RM1 billion
medium-term notes (MTNs) that have a
high coupon rate of 5.45%, translating to
a cost saving of RM55 million.
“This move enhances ROE by 35bps.
Taking into consideration the loss of in-
come from AHAM, cost saving from the
RM1 billion MTNs redemption, and en-
larged equity base, we estimated the over-
all net negative impact to our FY23 profit
forecast is 13%-24% while ROE may fall
by 105-155bps,” said the analyst.
Click here to read the full story
0.3 sen per unit for Public e-Sukuk Fund.
Other funds, namely Public India-Glob-
al Equity Fund, Public Islamic Optimal
Growth Fund, Public Islamic Global Bal-
anced Fund and PB Asia Consumer Sec-
tor Fund, announced a gross distribution
of 0.5 sen per unit.
Public Mutual is Malaysia’s largest pri-
vate unit trust company with more than
170 funds under its management. It is also
an approved private retirement scheme
(PRS) provider, managing nine PRS funds.
It has a total of 31 branches/customer
service centres nationwide. The company
managed a total fund size of RM104 bil-
lion as at end-December 2021.
T U E S D AY F E B R U A RY 1 , 2 0 2 2 9 THEEDGE CEO MORNING BRIEF
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
KUALA LUMPUR (Jan 31): Analysts
have largely maintained ‘buy’ calls on
Tenaga Nasional Bhd following the gov-
ernment’s decision to maintain existing
electricity base tariff for the 2022-2024
Regulatory Period (RP3), despite a lack
of clarity on the latter’s parameters.
In their research reports, analysts view
the lack of clarity on RP3 parameters as
a near-term risk on the stock.
The mechanism underlines the rate of
return on Tenaga’s regulated asset base
(RAB), which comprises its transmission
and distribution (T&D) business and
makes up a sizeable portion of Tena-
ga’s earnings.
PublicInvest Research in its note
pointed out that during the RP2 (2018-
2020), the average electricity base tariff
of 39.45 sen/kWh reflected a weighted
average cost of capital (WACC) of 7.3%,
as well as a benchmark coal price of
US$75 (RM314) per tonne, a bench-
mark gas price of RM27.20 per million
British thermal units (mmbtu) and an
allowed capex of RM18.8 billion.
“Tenaga requested for a RM25.1 billion
capex allowance in RP2, but was only al-
lowed RM18.8 billion. For RP3, we under-
stand that it is proposing a capex allocation
of RM24 billion for its regulated assets for
the three-year period,” PublicInvest said.
Separately, RHB Research said “there
is a possibility that Tenaga’s earnings
could be negatively affected if the fuel
parameters are adjusted upwards with-
out changing the base tariff ”.
“If the fuel benchmarks are similar
to RP2+ parameters (2021), the KWIE
fund (Kumpulan Wang Industri Elektrik)
may continue to subsidise the domes-
tic users, and we also expect a higher
surcharge on non-domestic users going
forward,” the research house said.
“Assuming an annual capex of RM7
billion and 7% WACC, regulatory earnings
KUALA LUMPUR (Jan 31): Theta Edge
Bhd has been appointed by the Malaysian
Communication and Multimedia Com-
mission (MCMC) as the designated uni-
versal service provider for the provision
and implementation of Phase 1 Jendela
project.
Theta Edge said its wholly-owned
unit Theta Telecoms Sdn Bhd has re-
ceived the notification for appointment
on Jan 29.
Theta Edge will oversee the supply,
delivery, and installation of tower struc-
tures and their ancillaries to provide pub-
lic cellular services for 221 locations in
the “Universal Service Targets” for 14
clusters.
10 TheEdge CEO morning brief
h o m e
Analysts keep
Similarly CGSCIMB Research sees
“potential earnings risk from less fa-
‘buy’ on Tenaga
vourable RP3 parameters and possible
additional contribution for electricity
despite lack of
rebates in order to ease the people’s
burden”.
clarity on RP3
“We forecast a 30 basis point cut in
regulated return to 7% and 3% RAB
parameters
growth per annum for RP3,” it said,
keeping its price-to-earnings-derived
TP of RM10.88 which includes a 20%
discount to its five-year historical P/E
by Adam Aziz of 15x to factor in the regulatory risks.
theedgemarkets.com That said, the imposition of 3.7 sen/
kWh tariff surcharge on commercial and
industrial customers for the February to
June 2022 period under the imbalance
cost pass-through (ICPT) mechanism
to counter rising coal costs is seen as a
positive for the company, said Kenan-
ga Research.
“While there are no changes to base
tariff, we are still positive given the sur-
charge imposed on non-domestic us-
ers signifying the fuel cost pass-through
mechanism is indeed in place,” Kenanga
Research said, reiterating its outperform
TP of RM11.41.
Meanwhile MIDF Research has
maintained its neutral call of RM9.55
TP on the counter, on the back of con-
servative and flattish growth projection
on Tenaga’s earnings in 2022.
“In hindsight, we would expect RAB
to reflect increased capital spending on
the grid for energy transition and in
are estimated to grow 2.6% per annum in strengthening the distribution network
RP3 — any reduction of 0.1% in WACC for potentially increased electric vehicle
will reduce the regulatory earnings by charging infrastructure requirements,”
RM66 million, in our estimate,” it added. MIDF said.
Pending more clarity on the RP3 pa- “We leave our projections unchanged
rameters, PublicInvest and RHB Research at this juncture pending further details
have maintained their discounted-cash of the RP3 parameters,” it said.
flow (DCF)-derived “outperform” val- At the midday break Monday (Jan
uation target price (TP) on Tenaga of 31), Tanaga added 55 sen to RM9.16
RM12.42 and RM11.50 respectively. with 1.82 million shares done.
Theta Edge first
According to a statement from MCMC
earlier this month, Phase 1 covers 1,661
to announce
locations in 106 clusters nationwide.
For Theta Edge, costs for its portion
appointment to
of the project shall be a maximum of
RM154.36 million, inclusive of tax, the
develop tower
company said. It will be implemented
across a nine-month period from Jan 29,
structures under
it added.
Shares of Theta Edge rose seven sen
Jendela Phase 1
or 8.28% on Monday (Jan 31) ahead of
the announcement.
The counter, which has gained 34.56%
or 21.5 sen from its recent bottom of 68
by Adam Aziz sen on Jan 20, settled at 91.5 sen, giving
theedgemarkets.com it a market capitalisation of RM97.55
million.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
the edge file photo
Palm scales
record high on
reduced Indonesia
supply outlook
by Gavin Maguire
Reuters
SINGAPORE (Jan 31): Malaysian palm oil fu-
tures briefly touched a record high of RM5,700
per tonne in early trade on Monday (Jan 31)
before encountering light profit-taking as trad-
ers tried to factor in reduced supplies from top
producer and exporter Indonesia.
The benchmark palm oil contract for April
delivery on the Bursa Malaysia Derivatives Ex-
change ended the pre-Lunar New Year holi-
day half-day trading session down 0.73% at
RM5,587 per tonne. Bursa will only reopen
on Thursday (Feb 3).
Indonesian authorities shocked global ed-
ible oil markets last week by implementing a
new rule that made it mandatory for palm oil
producers to sell 20% of their output to do-
mestic consumers at fixed prices.
The rule change has clouded the outlook
for crude palm oil (CPO) supplies from Indo-
nesia, and upended global edible oil markets
by making what is traditionally the cheapest
KUALA LUMPUR (Jan 31): Sabah-based
Suria Capital Holdings Bhd, which is engaged in
investment holding and property development,
has appointed deputy head of Sabah division for
Parti Pribumi Bersatu Malaysia Datuk Juslie
Ajirol as one of its new independent and non-ex-
ecutive directors effective on Tuesday (Feb 1).
Juslie Ajirol, 68, has over 40 years of experi-
ence in public service. He served as a political
secretary to the ministry for Sabah Public Works
Department and Ministry of Rural Develop-
ment in Sabah from 1995 to 1999.
“His experience also includes 20 years in cor-
porate sector as chairman of government-linked
companies, namely Cement Industries Sabah
(2000-2004) and Sabah Urban Development
Corp (1999-2018),” according to Suria Capi-
tal’s filing with the bourse.
11 TheEdge CEO morning brief
h o m e
vegetable oil the costliest among the three major
edible oils traded across the world.
Fundamentals
Indonesia, the world’s biggest palm oil pro-
ducer and exporter, had set the CPO refer-
ence price for February at US$1,314.78 (about
RM5,507.61) per tonne, up from January’s
1,307.76 per tonne, the Trade Ministry said
in a statement last Friday.
India, the top edible oil importer, is likely
to set aside about three trillion rupees (US$40
billion or about RM167.6 billion) on food and
fertiliser subsidies in its budget next week
for 2022/23, officials said, roughly the same
amount the government budgeted for this fis-
cal year ending in March.
Chicago March 2022 soybean futures
stretched to fresh life-of-contract highs in early
trade on Monday to extend their run higher
on worries about the scale of drought-hit crops
from South America.
Chicago’s most-active soyoil contract rose
1.75% to 66.41 cents a pound, its highest since
June 2021, at 0449 GMT. Soymeal futures
were up 1.3% at US$416.70 a short ton.
China’s main commodity futures markets
will be closed until Feb 7 due to the Lunar
New Year/Spring Festival holiday.
Palm oil is affected by price movements in
related oils as they compete for a share in the
global vegetable oil market.
Palm oil may test a resistance at RM5,676
per tonne, a break above which could lead to
a gain into the RM5,749 to RM5,794 range.
Global markets
Asian share markets made a cautious start to
a week that is likely to see a rise in UK interest
rates and mixed reports on US jobs and man-
ufacturing, while surging oil prices added to
worries over inflation.
Oil rose 1%, hovering near seven-year highs
hit in the previous session, amid concerns over
tight supply as well as geopolitical tensions in
Eastern Europe and the Middle East.
Suria Capital
appoints Bersatu
deputy Sabah
head as one of
its three new
directors
by Syafiqah Salim
theedgemarkets.com
Fake news: PM’s
political secretary
lodges police
report against
three portals
Bernama
KUALA LUMPUR (Jan 31): Datuk Mo-
hammad Anuar Mohd Yunus, the political
secretary to Prime Minister Datuk Seri Ismail
Sabri Yaakob, on Monday (Jan 31) lodged a
police report against three news portals for
disseminating fake news and defamation
against the Bera MP.
Mohammad Anuar lodged the report at
the Dang Wangi District Police Headquarters
here at about 2.40pm. Mohammad Anuar
said a media portal issued a false report en-
titled “Ismail Sabri worried about being the
shortest PM, begs for support” which was
published on Sunday (Jan 30) and reposted
by two other portals on the same day.
“This is fake news and the event in the
statement happened when the prime minister
was at a function in Bera on Jan 29.
“Even at the media conference, the three
journalists from the portals were not present
at the location and have twisted the statement
to raise doubts over and credibility of the
prime minister,” he told a media conference
in front of the Dang Wangi police headquar-
ters here on Monday.
Mohammad Anuar said they would let the
police carry out an investigation and take ap-
propriate action against the three portals, which
intentionally and unethically produced the false
article against the prime minister. Dang Wangi
District Police chief ACP Noor DellhanYahaya
has confirmed receiving the report.
The group’s filings also named the other
two new directors: chartered accountant Da-
tuk Alexandra Chin @ Fui Lin and professional
engineer Jerome Jimbangan @ Terence.
Chin has over 35 years of experience in ac-
counting, taxation and auditing. She has been
a member of the ACCA Malaysia Advisory
Committee since 2017 and the chairman of the
ACCA Malaysia Women’s Network since 2018.
Meanwhile, Jimbangan is a professional en-
gineer with his own consultancy firm, Jurutera
Perunding JJ. He has been a director of the Sa-
bah Housing and Urban Development Board
since February 2021.
Suria Capital shares were trading down
two sen or 1.69% to RM1.16 as of the time
of writing on Monday, with a market value of
RM401.15 million.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
KUALA LUMPUR (Jan 31): Toyo Ven-
tures Holdings Bhd has withdrawn its
proposed dividend of one sen per share
due to “insufficient retained earnings”.
In a bourse filing, the loss-making
printing inks and electrical discharge
machining products manufacturer said
the dividend, proposed on Nov 30, 2021,
will not be tabled at its forthcoming an-
nual general meeting.
In a separate filing, Toyo Ventures an-
nounced that its external auditor, KC
Chia & Noor, has expressed a qualified
opinion on the group’s audited financial
statements for the financial period ended
Sept 30, 2021.
The auditor is unable to obtain “suffi-
cient appropriate audit evidence to deter-
mine the continuity and successful out-
come and reliable measurement of the
expenditures” attributable to the power
plant development project undertaken by
Toyo Ventures’ subsidiary Toyo Ink Group
Bhd during the development phase.
KC Chia & Noor is also unable to
carry out adequate procedures to obtain
information and explanations it consid-
eres necessary on the unaudited man-
agement financial statements of the in-
direct Vietnamese subsidiary, Song Hau
2 Power Co Ltd.
Another issue raised by the auditor re-
lates to a payment made to the Vietnam-
KUALA LUMPUR (Jan 31): SMTrack
Bhd has offered US$10,000 (RM41,900)
for information on parties and individuals
responsible for the spread of the accusa-
tions against the group in relation to the
implementation of radio frequency iden-
tification (RFID) at toll plazas.
In a statement on Monday (Jan 31),
RFID specialist SMTrack said that it is
taking proactive measures to identify the
“scandalmonger”.
“The group will offer US$10,000 (or
around RM41,900) to an informant that
can prove parties and individuals respon-
sible for the spread of the baseless accusa-
tions against the company, to online media.
“The reward will be given to [the] in-
formant that has factual evidence that
could be used in court against the indi-
viduals involved,” it added.
The reward will be given based on a
“first-come basis” — only one reward of
US$10,000 will be paid out, and if there
is more than one informant, the reward
will be shared on an equal basis.
SMTrack noted that this initiative was
proposed by the group’s substantial share-
holder Tan Sri Lee KimYew and seconded
by its independent non-executive director
Datuk Saiful Nizam.
12 TheEdge CEO morning brief
h o m e
Toyo Ventures
the consultant, which was then paid in
various sums to other relevant parties.
cancels
KC Chia & Noor said some of these
payments were not supported by “ade-
dividend due
quate documentary evidence”, adding
that it was unable to access the orig-
to insufficient
inal source documents and perform
verification procedures on the vari-
retained
ous transactions as they were held by
a third party.
earnings
“We were unable to obtain sufficient
appropriate audit evidence on certain
payments attributable to deferred ex-
penditure, and determine the effect of
by Izzul Ikram adjustments, if any, that might have been
theedgemarkets.com found to be necessary on the financial
position of the group as at Sept 30 2021,
or on its performance and cash flows of
the group for the financial period then
ended,” the auditor said.
Toyo Ventures, which had changed its
financial year end from June 30 to Sept
30, posted a net loss of RM12.92 million
on revenue of RM99.88 million for the
15-month period ended Sept 30, 2021.
Last week, the group said it was un-
able to release its annual report for the
period as it needed additional time to
resolve outstanding issues.
ese consultant of Song Hau 2 Power Co. Toyo Ventures’ share price closed six
It noted that of the RM417.5 million sen or 6.09% lower at 92.5 sen, giving
of deferred expenditure, RM344.2 mil- the group a market capitalisation of
lion was paid directly to the accounts of RM108.32 million.
SMTrack offers
to take concrete steps against the “scan-
dalmonger who hides behind the name of
US$10,000
sources and spreads fake news and mis-
information”.
bounty for
“While we want to ensure that whis-
tle-blowers are protected, we need to make
information
sure that it did not hurt institutions, corpo-
rates or individuals such as our independ-
on RFID
ent directors and substantial shareholders.
“As mentioned in our previous media
‘scandalmonger’
release, the damage of these baseless accu-
sations has severe implications against the
integrity of our capital market, company
and stakeholders,” he said.
by Izzul Ikram The group said that it will take legal
theedgemarkets.com actions against parties proven responsi-
ble for spreading the accusations against
SMTrack and has committed to donating
any monetary compensation awarded by
the court towards charities that focus on
rebuilding the country.
Previously, in a statement on Sunday
(Jan 30), the group denied the claims of
its involvement in the RFID toll payment
system project.
However, the group did not elaborate In the statement, Azmi added that as
on the specifics of the allegations concern- an RFID specialist, SMTrack believed it
ing its involvement in the RFID project. could help contribute to the RFID toll
SMTrack deputy executive chairman payment system but “at this juncture, we
Azmi Osman said that the group wants are not involved in the project”.
 T U E S D AY F E B R U A RY 1 , 2 0 2 2 13 THEEDGE CEO MORNING BRIEF

PRESENTED BY | M A I N PA R T N E R | S U P P O R T I N G PA R T N E R | SUPPORTED BY |

ENDORSED BY

MINISTRY OF HOUSING AND

LOCAL GOVERNMENT

The Best Managed & Sustainable Property Awards (BMSPA) introduced by EdgeProp Malaysia in 2017 to
benchmark Malaysian property management practices against the best-in-class globally, has not only
raised the bar for the industry, but also kick-started the urgently-needed conversation among property
stakeholders for Malaysian real estate to be designed, built and maintained sustainably.

To step up the efforts to promote the awards and its objectives, the awards will now be hosted by
The Edge Malaysia and will assume the name, The Edge Malaysia Best Managed & Sustainable Property Awards.

AWA R D S O B J E C T I V E
Promote sustainable real estate in Malaysia
through recognition of:

ter
• Malaysia’s best property management

n
practices
• Property in Malaysia designed and built
for sustainability E w!
NOW OPEN FOR ENTRIES
(NO FEES REQUIRED)
HOW TO ENTER
Download entry forms on
no
• All Residential, Office, Mixed Development,
Specialised and Retail properties managed bmspa.theedgemarkets.com
in-house/by property building managers
For enquiries, contact
• Strata and Non-strata buildings The Edge Corporate Communications at:
• Re-purposed buildings BMSPA@bizedge.com

ALSO OPEN FOR SUBMISSION SUBMISSION DEADLINE

(NO FEES REQUIRED)
• The Edge Malaysia’s Responsible Developer:
Building Sustainable Development Award
• The Edge-ILAM Malaysia’s Sustainable
Landscape Award
All entries must reach The Edge Communications Sdn Bhd,
Lobby Level, Menara KLK, No. 1 Jalan PJU 7/6,
Mutiara Damansara, 47810 Petaling Jaya, Selangor
by 5pm, Friday, 11 March 2022
Awards results audited by Deloitte
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
PM: Standard
chicken
maximum price
reduced by 20 sen
from Feb 5
to June 5
Bernama
reuters
KUALA LUMPUR (Jan 31):The National
Action Council on Cost of Living (NAC-
COL) that met on Monday (Jan 31), set
RM8.90 as the maximum price for stand-
ard chicken, 20 sen cheaper than the fixed
ceiling price of RM9.10.
Prime Minister Datuk Seri Ismail Sabri
Yaakob, who chaired the meeting, also said
the price of chicken eggs for all grades will
remain the same as currently set under
the Keluarga Malaysia Maximum Price
Control Scheme (SHMKM).
Both will take effect from Feb 5 until
June 5, he said.
“The government will provide subsidies
to ensure the price of items can be con-
trolled such as SHMKM and details on the
subsidies will be carried out by a cost of
living task force headed by the Agriculture
and Food Industry Ministry (MAFI), as
well as several other ministries, representa-
tives of government-linked companies and
consumer bodies until prices stabilise,” he
said in a statement here on Monday.
Ismail Sabri said besides this, import
permits for whole chicken is now open to
all chicken importers with approved per-
mits (AP) compared to before this, when
the import of only chicken parts such as
wings, thigh and others was permitted.
Ismail Sabri said the meeting, which
focused on short-term solutions to reduce
the pressure on rising prices, also agreed
14 TheEdge CEO morning brief
h o m e
for chicken import APs to be opened to
hypermarkets, besides also instructing
the Malaysian Competition Commission
(MyCC) to conduct investigations on the
possibility of cartels working in cahoots to
determine the prices of chicken and eggs.
He said the implementation of the Kel-
uarga Malaysia Sales Programme (PJKM),
involving 222 parliamentary constituen-
cies, must be intensified with the joint co-
operation of the relevant ministries to help
the people have access to basic necessities
that are cheaper.
“Kedai Harga Patut also needs to be
reactivated nationwide, while Pasar Tani
(Farmers Market) must operate as fre-
quently as possible. The meeting also
requested the Finance Ministry to look
into tax incentives to facilitate a trans-
formation of the chicken farming indus-
try,” he said.
The prime minister said in addition,
applications to hire Bangladeshi workers
were opened in stages on Jan 28.
“Cooperatives involved in the agricul-
tural industry will also be roped in to offer
basic necessities without the involvement
of middlemen as a way to stabilise pric-
es,” he said.
In addition, Ismail Sabri said the special
meeting also discussed long-term measures
that need to be taken to address the issue
of food supply and production, especially
for chicken and chicken eggs.
They include supporting research car-
ried out by the Malaysian Agricultural Re-
search and Development Institute (MAR-
DI) on oil palm kernel replacing corn and
soy as chicken feed.
The prime minister also proposed that
state governments extend the period of
land use under the temporary occupation
licence (TOL) for agricultural activities,
while also giving the government’s guar-
antee that food supplies will not only be
sufficient but also affordable for the people.
“Long-term action plans will be dis-
cussed in detail in the next NACCOL
meeting,” he said.
On the meeting itself, he said it was to
discuss food supply and production issues,
especially on chicken and chicken eggs.
“Proactive action must be taken by
the government to ensure prices remain
reasonable, while at the same time also
ensuring the chicken farming industry is
not impacted and able to ensure supply
remains stable,” he said.
Ismail Sabri said four papers were pre-
sented by the Domestic Trade and Con-
sumer Affairs Ministry, MAFI and the
Transport Ministry in the meeting that
was also attended by the Federation of
Malaysian Consumers Association (FO-
MCA) and the Consumers Association of
Penang (CAP).
Maybank IB
maintains ‘buy’
call on Genting
Malaysia ahead
of SkyWorlds’
opening
Bernama
KUALA LUMPUR (Jan 31): Maybank
Investment Bank (IB) has maintained
its ‘buy’ call on Genting Malaysia Bhd
in anticipation that the soon-to-be-
opened Genting SkyWorlds (GS) will
drive visitor growth for the group.
In a note, the bank said even though
it expects GS to be loss-generating due
to heavy depreciation, it remains con-
fident that GS will draw the crowds
either in gaming or non-gaming and
be net positive for Genting Malaysia.
“On a financial year basis, we
expect GS to attract three million
patrons and RM200 average spend
per patron.
“The former will see GS ranked
as the second most visited theme
park in Asean, while the latter is 20%
lower than Universal Studios Singa-
pore’s at S$80 (RM250),” it said.
Maybank IB said with the open-
ing of GS likely between mid and
late February 2022, Genting Malay-
sia is expected to gain RM180 mil-
lion earnings before interest, taxes,
depreciation, and amortisation per
annum, but it is not enough to offset
the assumption of RM330 million
depreciation per annum.
The investment bank also main-
tains its target price for Genting Ma-
laysia at RM3.38 per share.
As at 12.05pm, Genting Malay-
sia’s share price inched up one sen
to RM2.76 per share.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2 15 TheEdge CEO morning brief

h o m e

news In brief

reuters

Foreign investors acquired RM116m

of local equities last week — MIDF
KUALA LUMPUR (Jan 31): Foreign
investors continued to enter Malaysia’s
equity market for the third week at a
faster pace, acquiring a net RM116.45
million of local equities last week,
compared with RM11.35 million net in
AirAsia X slated to resume Sydney flights on Feb 14 the preceding week, MIDF Research
KUALA LUMPUR (Jan 31): AirAsia X Bhd (AAX) said in a statement yesterday that said. The brokerage noted that foreign
it will be resuming its commercial flights between Kuala Lumpur and Sydney from investors and retailers bought RM60.14
Feb 14. The long-haul low-cost airline said it will be prioritising full redemptions for million and RM5.89 million net of
its passengers affected by the restructuring. “AAX guests may reinstate their flight local equities respectively, while local
booking and utilise their credit account to book the flights,” it added. AAX noted that institutions started the week as net
flights will initially be operated weekly on Mondays from Kuala Lumpur to Sydney, and sellers at RM66.03 million. January has
returning on Tuesdays, from Feb 14 to March 22. — by Izzul Ikram so far seen a foreign net inflow of RM460
million. — Bernama

Teoh Siew Chin ceases to be a KIP

PTPTN hit record high RM3.01b
SSPN deposits in 2021
KUALA LUMPUR (Jan 31): The National
Higher Education Fund Corp (PTPTN)
recorded RM3.01 billion of total deposits
for the National Education Savings
Scheme (SSPN) in 2021. In a statement on
Monday (Jan 31), PTPTN chairman Datuk
Wan Saiful Wan Jan said this is a record
high and an increase of RM1.02 billion or
50.95% when compared with the previous
record of RM1.99 billion in 2020. As for
SSPN savings account openings in 2021,
a total of 421,281 accounts were opened,
which surpassed PTPTN’s annual target
of 400,000, according to Wan Saiful.
Meanwhile, he noted that total deposits
for the SSPN stood at RM10.88 billion as
at Dec 31, 2021. — by Izzul Ikram
REIT substantial unitholder
KUALA LUMPUR (Jan 31): Datin Teoh
Siew Chin has ceased to be a substantial
unitholder in KIP Real Estate Investment
Trust (REIT), the company informed
Bursa Malaysia on Monday (Jan 31). Teoh
disposed of 14.88 million units in the
REIT in an off-market transaction. The
transaction took place last Friday (Jan 28).
Notably, Teoh is the wife of the late Datuk
Chew Lak Seong, who was the former
managing director and co-founder of KIP
REIT. He passed away in June last year,
leaving Teoh as the beneficiary of his units
in the REIT. — by Syafiqah Salim
CAP targets to issue delayed annual
reports by third week of February
KUALA LUMPUR (Jan 31): China
Automobiles Parts Holdings Ltd (CAP)
said it is in the midst of finalising its
annual reports for the financial years
ended June 30, 2017 (FY17) to FY20. The
Practice Note 17 (PN17) company had in
December last year submitted its audited
financial statement for the four financial
years. Subsequently, its external auditor,
CAS Malaysia PLT, expressed a disclaimer
of opinion in the financial statement
for FY18 and FY17. The auditor said
a number of factors indicated that a
material uncertainty existed that may
cast significant doubt on CAP’s’ ability to
continue as a going concern. — by Sulhi
Khalid
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
Then and Now: How this Fed liftoff
is nothing like that of 2015
by Katia Dmitrieva & Alex Tanzi
Bloomberg
(Jan 31): The Federal Reserve is set for its
most aggressive liftoff period in decades
— just don’t look to 2015 for guidance
on its path.
Chair Jerome Powell last week pointed
to an economy in “a different situation”
from the last interest-rate hiking cycle,
highlighting a tighter labour market, the
fastest inflation since the 1980s and strong-
er economic growth.
The last time the central bank raised rates
from zero in 2015, the economy was emerg-
ing slowly from the global financial crisis and
a long recession marked by weak households.
This time, the Fed is playing catchup amid
decades-high inflation and a swift rebound
in demand from the Covid-19 shock.
To tame prices, Powell and his colleagues
are prepared to raise interest rates in March,
the first of at least three hikes in 2022, ac-
cording to Wall Street economists. Some
see increases at each of the seven remain-
ing meetings this year. Last week, the Fed
said it’d be “nimble” and “move steadily,”
versus at a “gradual” pace back in 2015.
“It’s night and day,” said Ryan Sweet,
head of monetary policy research at
Moody’s Analytics Inc. “The last time we
were lifting off, the Fed was raising rates in
anticipation that inflation was going to get
back up to 2%. Now they’re raising rates
in an environment where they’re trying to
get inflation down to their target.”
In a press conference Wednesday, Powell
said that the Federal Open Market Commit-
tee was “of a mind” to raise rates in March,
and didn’t rule out hiking at every meeting
to tame inflation. He also said the labour
market was consistent with full employment,
pointing to plentiful jobs and higher wages.
Here’s a look at the three main factors
Powell cited as a precursor to what is set
to be the Fed’s most aggressive one-year
hiking cycle in decades:
Inflation
Inflation today is the hottest in nearly 40
years. Consumer prices have skyrocketed
amid a confluence of supply-chain con-
straints — driven by Covid lockdowns and
quick reopenings globally — and a dearth
of manufacturing and delivery workers.
Across the US, especially in smaller cities
in the heartland, that means higher costs
being passed down the supply chain for
months ahead.
16 TheEdge CEO morning brief
w o r l d
US Federal Reserve Chair Jerome Powell.
The most recent figures point to escalat-
ing pressures. The personal consumption
expenditures price gauge, which measures
what Americans pay for goods and servic-
es, rose 5.8% in December from the prior
year, the most since 1982.
Employment costs rose from the same
month in 2021 by the most in two dec-
ades — some economists fear that could
propel a wage-price spiral in which em-
ployers raise prices even further to offset
higher pay for workers.
“Back then, they were trying to get
ahead of inflation and ahead of wages,”
said Aneta Markowska, chief US financial
economist at Jefferies. “Now, they’re not
ahead, they’re way behind.”
Labour market
The labour market is in better shape today
by many historical standards. The employ-
ment-to-population ratio for prime-age
workers — or the share of employed 25- to
54-year-olds out of that population — rose
to 79% in December, higher than the 2015
period.The unemployment rate is now down
to 3.9%, versus 5% six years ago.
Job openings remain near a record
and the share of people leaving their jobs
for others matches the highest level ever,
just some of the factors contributing to
rising wages.
“We have a pretty tight labour market,
we have labour shortages which are mostly
pandemic related. That’s going to contin-
ue keeping upward pressure on wages,”
Sweet said.
bloomberg
The Fed is counting on continued
strength in the job market as policy mak-
ers raise rates. At the same time, the central
bank’s view of full employment now includes
an increased focus on minority groups, who
still lag the general population: Black unem-
ployment rose in December compared to a
decline among White Americans.
Markets
The Fed is much more optimistic on eco-
nomic growth this time around. Accord-
ing to the central bank’s latest projections,
gross domestic product will expand at a
4% rate this year, more than double the
longer-term estimated pace. In December
2015, the central bank called for GDP to
rise 2.4% in the year ahead.
The upbeat view is supported by expec-
tations for healthy consumer spending as
households are flush with cash, thanks to a
stock-market rally that’s helped add trillions
of dollars to household wealth in the pan-
demic, as well as unprecedented government
stimulus and record home valuations. The
collapse of the housing market, of course,
was at the root of the 2008 recession that
preceded the 2015 tightening cycle.
The Treasury market also has a much
different tone these days. Traders are cur-
rently pricing in an average annual inflation
rate of nearly 2.9% from now through Janu-
ary 2027. In December 2015, it was 1.2%.
Credit risk gauges remain below pre-pan-
demic levels, indicating that investors see a
path for the Fed to tighten without damag-
ing corporate access to funding.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2 17 TheEdge CEO morning brief

w o r l d

reuters

‘Reviled’ meme
(Jan 31): Beaten-down meme stocks could
stage a comeback if solid economic and

stocks await
earnings growth help repair battered in-
vestor sentiment.

market calm
That’s according to Evercore ISI’s Julian
Emanuel, who in late 2019 predicted the

to attempt a
retail-investing boom. The strategist says a
robust corporate and economic environment

is likely to help revive such shares this year if
“cooler heads prevail” in coming weeks, help-
ing to alleviate the dour mood in markets.
There’s a lot of negative sentiment to
overcome. Many stocks that peaked ear-
ly last year amid the retail-trading frenzy
are significantly off their highs as concern
grows about the impact of Federal Reserve
rate hikes and inflation. A gauge of re-
tail favorites from Nomura Holdings Inc.
and Wolfe Research has slumped over 30%
from a November high.
Yet Emanuel sees reason for optimism.
“We look for equities to stabilize,” he
wrote in a note Sunday. “Could the same
meme/concept/profitless stocks now heav-
ily shorted and universally reviled, which
topped in 2021’s triumph, be set to rally?”
comeback
by Joanna Ossinger
theedgemarkets.com
Screening for beaten-down stocks with
notable levels of short interest Emanuel
created a ‘Meme Stock 180’ list of shares
to watch. It includes Teladoc Health Inc., the 1640s, shares in the South Sea Compa-
Peloton Interactive Inc., Plug Power Inc. ny in the 1700s, stock prices in the 1920s,
and Novavax Inc. and the dot-coms — good old-fashioned
Still, until sentiment turns, the strate- FOMO, or the fear of missing out,” Herb
gist can expect skeptics to point to similar Greenberg of Empire Financial Research
manias in history. said in a note Friday. “When it comes to
“Meme madness was fueled by the manias, we always think it’s different this
same thing that drove up tulip prices in time. Spoiler alert: It never is.”

Cathie Wood
boosts Robinhood
buying with stock
at record low
by Abhishek Vishnoi
Bloomberg

(Jan 31): Cathie Wood stepped up buying

of Robinhood Markets Inc shares as the
online broker’s stock dropped to a record
low following earnings that fell short of
Wall Street expectations.
Wood’s firm ARK Investment Manage-
ment bought nearly 2.44 million Robin-
hood shares last Friday (Jan 28), the most
since its stock market debut in July, ac-
cording to trading data from Ark com-
piled by Bloomberg. The buying came on
a day when the firm’s stock at one point
dropped below US$10 (about RM41.89),
before staging a rebound in line with the
broader US market.
Robinhood still trades 67% below its in-
itial public offering (IPO) price and ranks
among the worst high-profile global stock
market debuts during the Covid-19 pan-
demic, joining the likes of China’s Didi
Global Inc and London’s THG plc.
Wood’s flagship ARK Innovation ETF
(exchange traded fund) bought 1.95 mil-
lion shares in Robinhood last Friday, while
the ARK Next Generation Internet ETF
and ARK Fintech Innovation ETF each
bought more than 230,000 shares, accord-
ing to the asset manager’s daily trading
updates.
Ark, which is already one of the firm’s
top shareholders, has bought its shares al-
most every week since late October, when
the stock dropped below its IPO price of
US$38, according to data compiled by
Bloomberg.
Ark’s flagship fund has struggled af-
ter advancing nearly 150% in 2020. As
Covid-19 vaccines were rolled out and
economies reopened, investors dumped
speculative tech stocks and started buying
names that would benefit from a broader
recovery, leading ARKK to a 24% decline
last year.
The US Federal Reserve’s pivot towards
rate hikes is exacerbating the pain this year,
with ARKK falling another 27% so far in
2022. Short interest as a percentage of
shares outstanding in the ETF has climbed
to a record 11% earlier this month, accord-
ing to data from IHS Markit Ltd.
Wood and her firm frequently say that
their investment horizon is at least five
years, and acknowledge that the disrup-
tive companies they target are often vola-
tile. Ark’s daily trading updates show only
active decisions by the management team
and do not include creation or redemption
activity caused by investor flows.
T U E S D AY F E B R U A RY 1 , 2 0 2 2 18 THEEDGE CEO MORNING BRIEF

39829D
231F20
 t u e s d ay f e b r u a ry 1 , 2 0 2 2 19 TheEdge CEO morning brief

w o r l d

reuters

Macau Legend Tak Chun did not immediately respond

to a request for comment. Reuters was un-

shares fall
able to reach Chan separately.
Apart from Chan, the police have also

over 20% after

arrested one other man for alleged illegal
gambling and money laundering.

CEO’s arrest
Analysts said the arrests herald a new
era of zero tolerance of the promotion of
gambling in China.

UK businesses
“We believe the investor base has be-
by Donny Kwok & Farah Master come well aware that VIP is no longer the

scale back pay

Reuters segment that matters,” George Choi, an
analyst at Citibank in Hong Kong, said

plans despite HONG KONG (Jan 31): Shares in Macau in a note on Monday. “The Macau gov-
Legend, which owns and operates a casino ernment’s recent clarifications on amend-

higher inflation
resort in Macau, fell more than 20% to an ments to the gaming law signal that the
all-time low on Monday (Jan 31) after its government remains supportive of sustain-

— Lloyds
chief executive officer (CEO) was arrest- able development of the mass segment.”
ed and detained by police in the world’s The mass segment refers to mass mar-
largest gambling hub. ket gamers, or mom-and-pop players, not
Chan Weng Lin’s arrest comes as au- the high-rollers.
by David Milliken thorities have stepped up a crackdown Junket operators have traditionally of-
Reuters on illicit capital outflows from the Chi- fered easy credit to mainland Chinese
nese mainland, where all forms of gam- high-rollers, who play in Beijing-ruled Ma-
LONDON (Jan 31): British businesses bling are illegal, and after the high-pro- cau’s casinos and collect on their debts
are scaling back plans for pay rises and file arrest of Suncity boss Alvin Chau in using underground financing channels.
hiring, but almost half intend to increase November. Now nearly non-existent, the opaque
the prices they charge customers as they Macau Legend reported that Chan had VIP industry made up more than two-
seek to manage rapidly rising costs, a been arrested in a statement to the Hong thirds of Macau’s gambling revenue until
survey showed on Monday. Kong stock exchange on Sunday, adding just a few years ago.
The figures from a monthly Lloyds that it did not expect any adverse impact The police said the latest arrests were
Bank survey will give mixed signals to from this on its daily operations. linked to the Suncity case in November as
the Bank of England on the persistence Chan owns around a third of Macau the two groups — Suncity and Tak Chun
of inflation pressures — and the extent Legend, which runs three casinos under — worked together, engaging in “illicit
to which they will hamper growth — as a service agreement with SJM Holdings and criminal activities”. Suncity and Tak
it considers a widely expected rate rise and owns the Fishermans Wharf, an en- Chun have been the top two junket firms
this week. tertainment complex near the Macau ferry in Macau, employing thousands, but data
A record 49% of the 1,200 business- terminal. He is also the chairman of Tak from Macau’s gambling regulator shows
es surveyed between Jan. 4 and Jan. 18 Chun Group, Macau’s second-biggest jun- the number of licensed junkets has shrunk
said they expected to raise prices, up ket operator after Suncity. 46% over the past 12 months.
from 45% in December.
But the proportion expecting to raise
pay by 2% — well below the current 5.4%
rate of inflation — fell to a five-month low
of 41% from 48% in December.
The number planning pay rises of
3% fell to 21% from 26% and those
share of those planning 4% pay rises
dropped to 12% from 14%.
“Businesses remain cautious about the
pandemic and are facing into challeng-
es from rising cost pressures although
many are raising their prices in response,”
Lloyds Bank economist Hann-Ju Ho said.
Overall confidence slipped from De-
cember and hiring intentions were the
lowest since August — although 46%
of firms still plan to increase their head-
count over the next 12 months.
A monthly survey from the Confed-
eration of British Industry on Sunday
showed that private-sector growth in
the three months to January was the reuters

weakest since April, reflecting a big hit

to many firms from a wave of Omicron Now nearly non-existent, the opaque VIP industry made up more than two-thirds of
cases in December and January. Macau's gambling revenue until just a few years ago..
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
(Jan 31): China’s economy continued to
slow at the start of the year, with manufac-
turing output slipping and Covid-19 out-
breaks curbing consumer spending.
The official purchasing managers’ sur-
veys released on Sunday showed a moder-
ation in factory production and services in
January. Small businesses bore the brunt
of the pain, with a separate private index
dropping to its lowest in almost two years.
The disruptions add to the woes facing
the Chinese economy, with home sales fall-
ing and consumption sluggish due to tight-
ened restrictions to contain the spread of
the highly-contagious omicron virus variant.
Beijing is seeking to stabilize the economy
ahead of a key political leadership meeting
later this year, with the central bank already
cutting interest rates and officials pledging
more fiscal support.
“The weak PMI indicates the policy eas-
ing measures from the government have
not yet been passed to the real economy,”
Zhiwei Zhang, chief economist at Pinpoint
Asset Management Ltd., wrote in a note.
“We expect the government will step up
policy support in coming months, particu-
larly through more fiscal spending.”
The official manufacturing purchasing
managers’ index declined to 50.1, the Nation-
al Bureau of Statistics said Sunday, remaining
slightly above the 50-mark that separates ex-
pansion from contraction.The non-manufac-
turing gauge, which measures activity in the
Chinese
developer
Shimao shares
rise nearly 5%
after more asset
disposals
by Clare Jim
Reuters
HONG KONG (Jan 31): Shares of cash-
strapped Shimao Group rose on Monday
after the Chinese developer and its chair-
man sold a Shanghai hotel and a stake in
a Hong Kong development, respectively,
for a total of $836 million, in their latest
efforts to raise funds.
The disposals come after Shimao put
up its assets worth 77 billion yuan ($12.11
billion) for sale to raise cash to repay its
debts, offloading two other assets in the
past two weeks for 3 billion yuan.
20 TheEdge CEO morning brief
w o r l d
China
manufacturing
slips in latest
sign of slowing
economy
Bloomberg
reuters
construction and services sectors, fell to 51.1.
The PMI gauge of small companies
dropped to 46 this month, the lowest since
February 2020 and taking a contracting
streak to a ninth month.
That was echoed by the Caixin Manufac-
turing Purchasing Managers’ Index, also re-
leased on Sunday, which fell to 49.1, the worst
in almost two years.The private survey focuses
on smaller, export-oriented firms compared
The Shanghai-based developer said
late on Friday it sold Hyatt on the Bund
to state-owned Shanghai Land (Group)
Co for 4.5 billion yuan.
Its chairman Hui Wing Mau also sold
his 40% stake in a Hong Kong high-
end residential development to Hong
Kong investors CSI Properties and C
C Land Holdings for HK$1.05 billion
($134.68 million), according to sep-
arate statements from the buyers late
on Friday.
Chinese state-owned property firms
are expected to acquire more assets
from private developers facing tight li-
with the official manufacturing PMI.
Chinese factories often see a production
lull in January and February as workers
head home for the Lunar NewYear holidays.
Activity has also been affected this year by
the government’s orders for steel plants to
trim output to reduce air pollution ahead
of the Winter Olympics in Beijing which
begin Friday.
Travel restrictions and lockdowns in
some places are curbing spending on ser-
vices, with the PMI sub-index for the sector
dropping sharply to 50.3, the lowest since
August. Residents in places where there
have been recent Covid-19 outbreaks, in-
cluding Beijing, Shanghai and the northern
port city of Tianjin, have been urged to not
leave the cities unless necessary.
Manufacturers were also squeezed by
higher costs in January, with input prices
rising at the fastest rate in three months,
according to the official PMI data.
“That could drive the producer price in-
dex up and narrow the room for monetary
policy,” said Bruce Pang of China Renais-
sance Securities Hong Kong.
Construction activity continued to cool
this month, with the sub-index falling to 55.4,
NBS figures show, suggesting sentiment re-
mained subdued given the property down-
turn and the limited effect that government
spending on infrastructure is having so far.
The approaching holiday and cold winter
may have also had some impact on building.
reuters
quidity, analysts said, as Beijing steps up
efforts to stabilise and tighten control
over a crisis-hit sector that accounts for
a quarter of its economy.
Financial media outlet Cailianshe
reported over the weekend a state-
owned healthcare real estate firm in the
northeastern province of Shandong may
become China Aoyuan Group’s con-
trolling shareholder, and it has com-
pleted the preliminary due diligence.
Shares of Shimao gained 4.8%,
while Aoyuan rose 6.8%. The Hang
Seng Mainland Properties Index was
up 2.2%.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
JLR owner Tata
Motors posts
quarterly loss
by Chandini Monnappa
Reuters
BENGALURU (Jan 31): Jaguar Land
Rover (JLR) owner Tata Motors reported
a loss for the third quarter on Monday,
hurt by semiconductor shortages and high
commodity prices.
Automakers worldwide have been roiled
by the chip shortage, along with supply
chain disruptions, Covid-19 restrictions,
and rising raw material prices after a short-
lived recovery towards the end of 2020.
MALAGA (Jan 31):Vodafone said on Mon-
day it would work with Intel Corp and other
silicon vendors on designing its own chip ar-
chitecture to drive innovation and efficiency
in nascent OpenRAN network technology.
The initiative will be based at Vodafone’s
digital innovation and research-and-devel-
opment centre in Malaga, which opened
on Monday.
Fifty people dedicated to OpenRAN
will join 650 software engineers, architects,
and technicians in the Spanish city, where
the British company is investing €225 mil-
lion over five years.
OpenRAN will allow operators to mix and
match suppliers in their radio networks, aim-
ing to weaken the grip Ericsson, Huawei, and
Nokia have on the global telecom equipment
market with their proprietary technologies.
It creates interoperability among the
software and hardware components of the
radio access network, widening the pool of
suppliers and lowering the barrier of entry.
Vodafone’s director of network archi-
tecture Santiago Tenorio said OpenRAN
would enable the mobile operator to quick-
ly add new digital services and to optimise
networks using artificial intelligence.
21 TheEdge CEO morning brief
w o r l d
Bloomberg
Retail sales at JLR, which accounts for
most of Tata Motors’ revenue, fell 37.6%
in the December quarter from a year ear-
lier, and production volumes jumped 41%
sequentially, the company said.
“The semiconductor shortage is ex-
pected to continue through 2022 but
is expected to gradually improve as ca-
pacity within the supply base increases”,
Tata Motors said in an exchange filing
on Monday.
Consolidated net loss came in at 15.16
billion rupees (US$203.23 million) for the
quarter ended Dec 31, compared with a
profit of 29.06 billion rupees a year earli-
er when an easing of coronavirus-related
restrictions led to a pickup in sales.
However, the recovery was short-lived
as acute semiconductor shortages and sup-
ply chain disruptions delayed production,
and Tata Motors slipped back to losses.
Vodafone to
design chips
with Intel for
OpenRAN
networks
by Paul Sandle
Reuters
Reuters
Elliott and Vista
near US$13 billion
deal to buy Citrix
— source
by Krystal Hu
Reuters
(Jan 30): Elliott Management Corp
and Vista Equity Partners are close to
buying Citrix Systems Inc in a deal that
values the U.S. cloud computing com-
pany at about $13 billion, according
to a person familiar with the matter.
The deal, which could be an-
nounced as soon as early this week,
came after Elliott and Vista jointly
tapped the loan market to fund their
cash bid for Citrix at $104 per share.
Once taking Citrix private, Vista plans
to merge it with Tibco, another data
analytics software firm it owns.
The cash bid comes lower than
where Citrix stock closed at $105.55
on Friday. Still, the price represents
a premium to its lows in December.
Citrix's products allow employees of
companies to access their network re-
motely. However, it failed to capitalize
on the rise of remote working during
the COVID-19 pandemic because it
spent too much on its salesforce and
too little on its distribution partners,
Citrix interim Chief Executive Robert
Calderoni said on the company's most
recent quarterly earnings call.
Citrix, Elliott andVista did not imme-
diately respond to requests for comment.
Elliott, the hedge fund that has
amassed a stake in Citrix, has been look-
ing for partners to take the company
private since last October, sources said.
While Citrix has struggled to transi-
tion to a subscription-based business,
demand for its cloud services soared
during the pandemic as companies
shifted to remote working models.
Still, the company reported oper-
ating income of $84.5 million in the
third quarter, down from $128.3 mil-
lion a year ago, as higher operational
expenses weighed.
Calderoni took over on an inter-
im basis from David Henshall, who
stepped down last month, having
served as Citrix CEO since 2017. El-
liott managing partner Jesse Cohn
joined the Citrix board of directors
in 2015 and stepped down last year.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2 22 TheEdge CEO morning brief

w o r l d

OCBC to give
(Jan 31): Oversea-Chinese Banking The Monetary Authority of Singapore
Corp (OCBC) said it completed mak- this month said it would be intensifying

S$13.7m of
ing arrangements for S$13.7 million its scrutiny of major financial institu-
(RM42.33 million) in goodwill payouts tions’ fraud surveillance mechanisms.

goodwill payouts
to 790 customers who fell prey to an text The scam that affected OCBC custom-
message phishing scam impersonating ers struck a chord in the city-state with

after scam
the lender.
About 80% of the amount lost oc-
curred during Dec 23 to 30 festive period,
at which time calls to the bank’s contact
centre surged by over 40%, OCBC said
in a statement on Sunday (Jan 30). A pre-
vious figure that over 450 customers had
been scammed of S$8.5 million was based
on police reports made in December, and
more victims came forward or were dis-
covered this month, it said.
“OCBC Bank decided to make the full
payout as a one-off gesture of goodwill
given the circumstances of this scam,”
it said. “We also took into consideration
that our customer service and response fell
short of our own expectations, that could
have affected loss mitigation in some of
the cases.”
local media reports of victims having
their life savings wiped away suddenly.
It sparked commentaries raising ques-
tions about safeguards amid Singapore’s
Bloomberg push to position itself as a tech and dig-
ital banking hub.
Bloomberg OCBC started to make goodwill pay-
ments on Jan 8, acknowledging at the time
that its customer service and response fell
short of expectations. An investigation by
the bank revealed that the victims had pro-
vided their online banking log-in creden-
tials and one-time passwords to phishing
websites, enabling the scammers to take
over their bank accounts, the bank said
on Sunday.
There has been no further fraudulent
transactions in relation to the scam over
the past few weeks, it said.

UAE intercepts
(Jan 31): The United Arab Emirates inter- There was no impact on flights or air-
cepted a ballistic missile fired by Yemeni ports, the General Authority for Civil Avi-

missile fired
fighters during a visit by Israel’s president, ation said.
the third attack in a month on the Middle “We condemn the latest Houthi mis-

during Israel
East’s financial hub. sile attack on Abu Dhabi,” US State De-
The UAE destroyed the missile and partment Spokesman Ned Price said on

there were no casualties, with fragments
falling “outside of populated areas,” ac-
cording to a Defence Ministry statement
on Monday (Jan 31). A spokesman for the
Iranian-backed Houthi fighters confirmed
the attack.
The interception came during a visit by
Israeli President Isaac Herzog, who met
with UAE de facto ruler Crown Prince
Mohammed bin Zayed for the first time
since the two countries normalised rela-
tions in 2020. Herzog’s office said there
was no danger to the president and that his
visit was expected to continue as planned.
president’s visit
Bloomberg
The recent missile attacks mark the
biggest blowback for the UAE since it got
involved in Yemen’s war that began about
seven years ago.They also threaten to rattle
investors, who count on the country as a safe
haven in a volatile region — as well as mil-
lions of foreign workers, who call the coun-
try home and keep its economy running.
Bloomberg
A Yemeni government fighter
sits with his weapon on the
back of a pick-up truck on the
front line in the battle against
Shiite-Houthi rebels outside of
Sana'a, Yemen in 2018.
Twitter.
“While Israel’s president is visiting the
UAE to build bridges and promote stabili-
ty across the region, the Houthis continue
to launch attacks that threaten civilians.”
The country had last week warned
against travel to the UAE, in part due to
the threat of missile and drone attacks.
That followed a rare alert from the US
embassy offering detailed advice on how
to cope with missile strikes.
US and UAE forces at Abu Dhabi’s Al
Dhafra Air Base had used multiple Patriot
interceptors against two inbound missiles last
week. US forces “set a heightened alert pos-
ture at the time of the attack,” which involved
“airmen using available bunkers.” About two
thousand US troops are stationed at the base.
The Houthis are pressuring the UAE to
cut back its involvement in Yemen’s war.
Concerned about spreading Iranian influ-
ence, the UAE and Saudi Arabia intervened
in Yemen in 2015, after the Iran-backed
Houthis took the capital and dislodged the
internationally-recognized government.
The UAE withdrew most of its forces
from Yemen in 2019 but kept a smaller
group to maintain support and training for
Yemeni proxy forces, notably those known
as the Giants Brigades. The UAE also has
ties to the Southern Transitional Council,
a separatist group fighting the Houthis.
 t u e s d ay f e b r u a ry 1 , 2 0 2 2
M A R K E T S
CPO RM 5,592.00 -36.00 OIL US$ 90.65 0.62 RM/USD 4.1855 RM/SGD 3.0901 RM/AUD 2.9528 RM/GBP 5.6228 RM/EUR 4.6756
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
SMTrack Bhd 48.60 0.000 0.160 -15.79 109.5
Hibiscus Petroleum Bhd 42.30 0.060 1.010 23.93 2027.6
AHB Holdings Bhd 36.6 0.000 0.130 0 48.6
OPCOM Holdings Bhd 34.4 0.010 1.060 10.99 295.3
Pertama Digital BHD 29.7 0.120 0.785 35.34 340.2
Vinvest Capital Holdings Bhd 27.9 0.010 0.460 0 445.8
NWP Holdings Bhd 27.6 0.020 0.180 -26.53 94.8
AirAsia Group Bhd 24.2 -0.035 0.545 -31.01 2268.1
Dagang NeXchange Bhd 21.4 0.005 0.940 23.68 2966
G3 Global Bhd 19.1 0.005 0.080 0 173.1
Impiana Hotels Bhd 17.9 -0.005 0.045 -40.00 65.0
Bumi Armada Bhd 16.2 0.015 0.550 17.02 3248.9
Senheng New Retail Bhd 15.9 -0.030 0.795 0 1192.5
Coraza Integrated Technology 14.1 0.010 0.895 0.00 383.4
Top Glove Corp Bhd 14.1 0.010 2.130 -17.76 17055.1
My EG Services Bhd 14 0.020 0.970 -9.35 7170.8
Top Builders Capital Bhd 13.5 0.005 0.020 -42.86 14.1
Daya Materials Bhd 13.4 0.005 0.010 0.00 20.4
Public Bank Bhd 13.1 -0.010 4.210 1.2 81719
PUC Bhd 12.9 -0.005 0.135 -6.9 199.3
Data as compiled on Jan 31, 2022 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
Daya Materials Bhd 0.010 100.0 13395.6 0.00 20.4
Pegasus Heights Bhd 0.015 50.0 120.5 50.00 161.5
Metronic Global Bhd 0.020 33.3 1168.6 0.00 43.4
Compugates Holdings Bhd 0.020 33.3 105.40 33.33 76.4
Top Builders Capital Bhd 0.020 33.3 13540.9 -42.86 14.1
Malaysian Genomics Resource 1.180 20.4 11,340.20 1.72 146.6
Pertama Digital Bhd 0.785 18.1 29723.7 35.34 340.2
Yong Tai Bhd 0.120 14.3 3322.3 -7.69 161.8
Flexidynamic Holdings Bhd 0.445 12.7 12.0 -1.11 126.3
NWP Holdings Bhd 0.180 12.5 27562.4 -26.53 94.8
Bina Puri Holdings Bhd 0.050 11.1 44 11.11 79.9
Country Heights Holdings Bhd 1.480 10.5 674.9 -16.38 404.9
CME Group Bhd 0.055 10.0 525.4 -8.33 53.3
Minda Global Bhd 0.065 8.3 31.7 18.18 85.9
Theta Edge Bhd 0.915 8.3 6644.2 7.65 98.1
SC Estate Builder Bhd 0.070 7.7 232.2 -6.67 75.2
Pan Malaysia Holdings Bhd 0.070 7.7 4928.0 -12.50 65.0
Lambo Group Bhd 0.070 7.7 449.1 -17.65 107.8
Keck Seng Malaysia Bhd 3.690 7.6 0.2 7.27 1325.8
Lysaght Galvanized Steel Bhd 1.99 7.57 0.3 6.99 82.7
Data as compiled on Jan 31, 2022 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
PMB Technology Bhd 14.660 0.660 168.1 19.38 3,117.80
Malaysian Pacific Industries 39.460 0.560 160 -20.06 7,848.50
Hartalega Holdings Bhd 5.880 0.300 3639.7 2.62 20,094.70
Keck Seng Malaysia Bhd 3.690 0.260 0.2 7.27 1,325.80
ViTrox Corp Bhd 8.140 0.240 75.30 -18.27 7688.8
Malaysian Genomics Resource 1.180 0.200 11,340.20 1.72 146.60
Sam Engineering & Equipment M 21.580 0.180 4.9 -3.66 2,920.90
Kesm Industries Bhd 11.000 0.180 1.10 -10.42 473.20
Ta Ann Holdings Bhd 3.570 0.170 1,443.50 1.71 1572.4
Heineken Malaysia Bhd 20.460 0.160 14.2 -1.82 6,180.90
Greatech Technology Bhd 5.210 0.160 2183.1 -22.59 6,523.60
LPI Capital Bhd 14.580 0.160 16.1 3.7 5808.4
Hengyuan Refining Co Bhd 4.060 0.140 265.30 4.91 1,218.00
Lysaght Galvanized Steel Bhd 1.990 0.140 0.3 6.99 82.70
Country Heights Holdings Bhd 1.480 0.140 674.9 -16.38 404.9
UWC Bhd 4.670 0.130 212.10 -24.80 5140.8
Pertama Digital Bhd 0.785 0.120 29723.7 35.34 340.20
D&O Green Technologies Bhd 4.86 0.11 1242.2 -17.63 6012.5
Mi Technovation Bhd 2.4 0.11 2306.9 -28.99 2150.4
Carlsberg Brewery M Bhd 20.180 0.100 11.9 0.5 6170
Data as compiled on Jan 31, 2022 Source: Bloomberg
23 TheEdge CEO morning brief
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 34,725.47 564.69 1.65 INDONESIA 6,631.15 -14.36 -0.22
S&P 500 4,431.85 105.34 2.43 JAPAN 27,001.98 284.64 1.07
NASDAQ 100 14,454.61 451.50 3.22 KOREA 2,663.34 48.85 1.87
FTSE 100 7,489.23 23.16 0.31 PHILIPPINES 7,361.65 109.68 1.51
AUSTRALIA 6,971.63 -16.51 -0.24 SINGAPORE 3,249.59 3.26 0.10
CHINA 3,361.44 -32.81 -0.97 TAIWAN 17,674.40 -26.72 -0.15
HONG KONG 23,802.26 252.18 1.07 THAILAND 1,650.15 10.64 0.65
INDIA 58,195.94 995.71 1.74 VIETNAM 1,478.96 8.20 0.56
Data as compiled on Jan 31, 2022 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
Fintec Global Bhd 0.010 -33.330 368.4 0.00 58.8
Jerasia Capital Bhd 0.100 -16.670 523.5 -37.50 8.2
Ageson Bhd 0.025 -16.670 3824.2 -37.50 39.0
Borneo Oil Bhd 0.025 -16.670 965.2 -16.67 186.7
BCM Alliance Bhd 0.025 -16.670 2,486.20 -16.67 50.9
Mlabs Systems Bhd 0.030 -14.290 634.2 0 43.5
Focus Dynamics Group Bhd 0.035 -12.500 1144.2 -12.50 223.0
Xidelang Holdings Ltd 0.035 -12.500 395.0 0.00 74.1
XOX Networks Bhd 0.035 -12.500 307.9 16.67 39.7
Jentayu Sustainables Bhd 0.480 -11.110 1582.7 10.40 110.6
Parlo Bhd 0.135 -10.000 2387.0 -10.00 59.0
AirAsia X Bhd 0.045 -10 12666.5 -30.77 186.7
PDZ Holdings Bhd 0.045 -10.000 670.5 0 26.2
Impiana Hotels Bhd 0.045 -10.000 17945.8 -40.00 65.0
Privasia Technology Bhd 0.100 -9.090 185.7 5.26 61.4
PGF Capital Bhd 0.620 -8.820 113.5 -10.14 99.2
KPS Consortium Bhd 0.550 -8.330 0.1 2.80 81.3
Sime Darby Plantation Bhd 3.530 -7.830 5891.2 -6.12 24412.5
Meridian Bhd 0.060 -7.690 22.0 -7.69 54.3
BTM Resources Bhd 0.120 -7.690 1.4 -27.27 20.5
Data as compiled on Jan 31, 2022 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
Nestle Malaysia Bhd 132.00 -1.30 58.4 -1.64 30954.0
British American Tobacco M Bhd 12.26 -0.52 1,087.20 -12.3 3500.6
PPB Group Bhd 15.88 -0.44 288.0 -7.13 22590.9
Rapid Synergy Bhd 8.30 -0.32 25.1 -16.58 887.2
Dutch Lady Milk Industries Bhd 32.30 -0.30 1.1 -3.64 2067.2
Sime Darby Plantation Bhd 3.53 -0.30 5891.2 -6.12 24412.5
Hong Leong Financial Group 18.20 -0.26 66.0 4.96 20843.4
Yinson Holdings Bhd 5.50 -0.23 1234.4 -8.33 5864.3
UPA Corp Bhd 2.08 -0.11 2.1 -9.17 160.6
Kuala Lumpur Kepong Bhd 21.60 -0.10 601.3 -0.83 23282.4
Dialog Group Bhd 2.56 -0.10 4700.5 -2.29 14445.0
Paragon Union Bhd 1.41 -0.10 3.0 -6.00 117.0
Panasonic Manufacturing M Bhd 28.80 -0.08 1.9 -0.35 1749.5
CIMB Group Holdings Bhd 5.20 -0.08 5570.9 -4.59 53151.5
Shangri-La Hotels Malaysia Bhd 3.38 -0.07 822.4 1.81 1487.2
Cycle & Carriage Bintang Bhd 2.08 -0.07 53.5 -2.8 209.5
Padini Holdings Bhd 2.87 -0.06 38.4 2.5 1888.2
DiGi.Com Bhd 3.80 -0.06 1540.9 -12.84 29545
Kotra Industries Bhd 3.44 -0.06 4.8 8.86 509.0
Westports Holdings Bhd 3.84 -0.06 857.1 -5.19 13094.4
Data as compiled on Jan 31, 2022 Source: Bloomberg