RM15B 5G INFRASTRUCTURE COST TO BE BORNE

BY PRIVATE SECTOR, SAYS MOF p4

W E D N E S DAY, M A RC H 1 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 148/2021

CEOMorningBrief
HOME: Former finance minister II Johari emerges as shareholder in Media Prima as share price tumbles p6
MRCB to develop RM1.3b GDV mixed-use project in Auckland p7
WORLD: US stimulus set to turbocharge world economy as Europe lags — OECD p18

REUTERS

Top Glove targets May

or June for primary
dual-listing in HK
Report on Page 3.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
the edge ceo morning brief
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KUALA LUMPUR (March 9): The gov-
ernment has given the green light for tour-
ist travel between states under the Recov-
ery Movement Control Order (RMCO)
through the targeted travel bubble pro-
gramme starting tomorrow.
Senior Minister (Security Cluster) Da-
tuk Seri Ismail SabriYaakob said, however,
the activities are subject to strict stand-
ard operating procedures (SOPs) includ-
ing having to go through registered travel
agencies under the Tourism, Arts and Cul-
ture Ministry (MOTAC).
“It must use tour vehicles registered
with MOTAC such as tour buses. Tourism
activities using privately-owned vehicles
are still prohibited,” he said in a news con-
ference on the Movement Control Order
(MCO) development here, today.
Besides that, he said the tour vehi-
cles were required to seek movement
KUALA LUMPUR (March 9): New
Covid-19 cases in Malaysia dropped to a
new 2021 low of 1,280 today from 1,529
yesterday, said Health director-general
Tan Sri Dr Noor Hisham Abdullah.This
is also the fourth straight day that new
infections stay below the 2,000 level. Cu-
mulative cases now stand at 316,269.
Two of today's new infections were
imported while the remaining were local
transmissions, Dr Noor Hisham said in
a statement.
Nine more fatalities were recorded in
the latest 24-hour reporting period, raising
the national Covid-19 death toll to 1,186.
These involved four patients in Selangor,
and one each in Kuala Lumpur, Tereng-
ganu, Perak, Sabah and Sarawak, aged
between 38 and 88 years.
Meanwhile, another 2,345 Covid-19
patients were discharged, raising total
recoveries to 296,379 compared with
170,329 as of Jan 1.
With recoveries again surpassing new
infections, total active cases declined fur-
ther to 18,704 — the lowest since Dec
24, 2020.
2 THEEDGE CEO MORNING BRIEF
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H O M E
Govt allows
Currently, seven states are placed under
the RMCO from March 2 to 15, namely
tourist travel
Melaka, Pahang, Terengganu, Sabah, Pu-
trajaya, Labuan and Perlis.
between RMCO
Meanwhile, he said the government
also agreed to change Langkawi Island’s
states, says
status to an RMCO zone starting tomor-
row although Kedah is still placed under
Ismail Sabri
the CMCO as there are no new Covid-19
cases reported at the island.
“The last Covid-19 cases reported were
on Feb 20 with two cases. Hence, the tar-
Bernama geted travel bubble is also applicable to
Langkawi Island,” Ismail Sabri said.
approvals from the police. He added that the public can refer to
The tour vehicles were also not allowed MOTAC or the National Security Council
to make a stop in states under the Con- for further information on the new SOPs.
ditional MCO for travels that need to go
through the respective states. Ismail Sabri
said the tourism locations and premises must Read also: Work from home policy still
also obtain approvals from MOTAC. applies, says Ismail Sabri Click here
Selangor continued to report the
Malaysia’s new highest number of fresh cases with
464, followed by Johor with 165 cas-
Covid-19 cases es, Sarawak (163) and Kuala Lum-
pur (119).
drop further There were also nine new Covid-19
clusters identified — six of which were
to 1,280 linked to workplaces — bringing the total
active clusters to 457.
The country has recorded 1,212 clus-
BY SYAFIQAH SALIM ters so far, of which 755 have been de-
theedgemarkets.com clared ended.
Malaysia’s coronavirus curve shows signs of flattening
6000 Daily new cases 7-day moving average
5000
4000
3000
2000
1,733
1,280
1000
0
Sept 1, 2020 March 9, 2021
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
Top Glove targets May or June
for primary dual-listing in HK
KUALA LUMPUR (March 9):Top Glove
Corp Bhd’s primary dual-listing in Hong
Kong will happen by May or June this year.
The timeline for the planned listing —
which is expected to raise up to RM7.7
billion — will, however, depend on factors
such as the Hong Kong Stock Exchange
(HKEx)’s vetting process, approval from
relevant authorities and market condi-
tions, Top Glove’s executive director Lim
Cheong Guan told a virtual press confer-
ence today.
The session was held in conjunction
with the release of Top Glove’s second
quarter ended Feb 28, 2021 (2QFY21)
and half-year financials.
The planned Hong Kong listing, an-
nounced by its executive chairman Tan
Sri Dr Lim Wee Chai last September, was
aimed at enhancing the rubber glove man-
ufacturer’s investor reach to diversify its
investor base.
On Feb 26, the group said it had filed
an application to the HKEx for the du-
al-listing, which will see Top Glove issuing
1.495 billion new shares, which is equiv-
alent to 18.65% of its existing issue share
capital of 8.2 billion shares, or 15.72%
of its enlarged share base of 9.51 billion
shares.
As to why the group needs to raise the
billions when it is sitting on a balloon-
ing cash pile — in line with anticipation
of continued record-breaking earnings
in the next three financial quarters or
longer — Cheong Guan said the cur-
rent conditions are simply right for the
group to raise funds via equity, with Top
Glove’s share price having reached a good
valuation
“Top Glove’s share price, while high-
er than pre-pandemic levels, is not at its
peak, which could deter new investors,”
Cheong Guan said. The planned listing
is also to seize optimal market conditions
when there is ample liquidity, and to avoid
raising cash only when it is needed in the
future, which may be hampered by factors
such as high cost of funding and lack of
liquidity, he added.
The proceeds to be raised will then
put the group on a stronger negotia-
tion footing when it comes to strate-
gic business expansion or acquisition,
he added.
The group has said the funds to be
raised will be used to expand its produc-
tion capacity and develop a data-driven
manufacturing system, as well as for soft-
3 THEEDGE CEO MORNING BRIEF
H O M E
BY JUSTIN LIM
theedgemarkets.com
ware system upgrades and to finance en-
vironmental, social, corporate governance
practices and initiatives.
Meanwhile, the existing cash from its
strong earnings from the past few quarters
will be used to reward existing sharehold-
ers via dividends, said Cheong Guan, as he
pointed to the group’s increased dividend
payout for 2QFY21 to 4QFY21, after it
committed to paying a 20% special divi-
dend on top of its dividend policy of 50%
of its profit after tax and minority interests
(PATAMI).
The group was in a net cash position of
RM4.06 billion as at Feb 28, 2021.
As to the potential earnings per share
(EPS) and dividend per share dilution
from the dual-listing, Cheong Guan said
this will be mitigated by the group’s strong
profit and the previously mentioned in-
creased dividend payout.
“Going forward, we expect the contin-
uous expansion of the group’s business to
be funded by the proceeds of the proposed
offering to improve our earnings in the
longer term, and to compensate for the
short-term dilution,” he added.
He also said the proposed issuance size
is intended to ensure meaningful liquidity
of Top Glove’s shares on HKEx. “[But]
we are cognizant of investors’ feedback
and will take all good suggestions into
considerations before we make a deci-
sion on the final issuance of new shares,”
he added.
As to why the HKEx is chosen,
Cheong Guan said the HKEx is a large
and active market, with a market capi-
talisation valued at US$6.75 trillion as
at March 5, 2021.
To put into perspective, the size of
HKEx is 15 times larger than Bursa Malay-
sia (US$440 billion) and 10 times bigger
than Singapore Stock Exchange (US$660
billion).
The HKEx listing is also aimed at
raising Top Glove’s profile in Greater
China, which it hopes will attract a new
group of investors from North Asia who
may not invest much in Bursa Malaysia
and SGX, where Top Glove is current-
ly listed.
Top glove announced earlier this af-
ternoon that its net profit for 2QFY21
jumped 20.76% to RM2.87 billion from
RM2.38 billion in 1QFY21, while revenue
grew 12.74% to a record RM5.37 billion
from RM4.76 billion.
On a year-on-year basis, its net profit
leapt 24 times from RM115.68 million,
while revenue expanded more than four
times from RM1.23 billion in 2QFY20.
The group declared a dividend pay-
ment of 25.2 sen per share, bringing total
dividend declared for the first half ended
Feb 28, 2021 (1HFY21) to 41.7 sen per
share, representing a 253% increase from
the full-year dividend for FY20 of 11.8
sen per share.
At Bursa today, Top Glove’s share price
closed up 15 sen or 2.98% at RM5.19 at
5pm for a market value of RM42.57 bil-
lion. The stock saw 43.9 million shares
traded.
Read also:
Top Glove 2Q net profit surges 21%
q-o-q to another record high of
RM2.87b Click here
Top Glove: Independent consultant
found no systemic forced labour within
group Click here
Glove stocks buoyed by Top Glove’s
strong 2Q performance Click here
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 4 THEEDGE CEO MORNING BRIEF

H O M E

RM15b 5G
KUALA LUMPUR (March 9):The RM15 Separately, Zafrul highlighted that Is-
billion cost of the 5G infrastructure devel- lamic Finance has shown unrelenting re-

infrastructure
opment will be borne by the private sector, siliency and continues to attract investors
said Finance Minister Tengku Datuk Seri during these uncertain times.

cost to be borne
Zafrul Abdul Aziz. “In 2020, Shariah indices have outper-
Speaking at the 16th Kuala Lumpur Is- formed conventional indices for two con-

by private sector,
lamic Finance Forum (KLIFF) 2021 to- secutive years. This has resulted in more
day, he said Digital Nasional Bhd (DNB), demand for shariah based investments,

the government-owned Special Purpose
Vehicle (SPV) set up to roll out Malaysia’s
5G network, will be launching an open ten-
der for the 5G infrastructure development,
which estimated to cost RM15 billion.
“On 5G, Digital Nasional Bhd will of-
fer 5G services via a wholesale model that
is regulated to ensure better transparency
and implementation,” he said.
Earlier, the Malaysian Communications
and Multimedia Commission (MCMC)
highlighted that DNB will be subjected
to the regulatory oversight of MCMC, as
it will be licensed to operate under the
Communications and Multimedia Act
1998 (CMA 1998).
The regulatory body said it will regulate
and monitor DNB to ensure, among oth-
ers, the optimum use of spectrum and that
all telecommunications service providers
will have open, fair and equal access in ob-
taining wholesale 5G network services for
the development of retail services based
on the 5G technology.
“The objective of making Malaysia a
digitalised nation as with the announce-
ment of MyDigital recently, will require
a robust, resilient and speedy effort by all
parties, whilst adhering to the right gov-
ernance and regulations.
says MoF
BY SULHI KHALID
theedgemarkets.com
“By removing the need for existing tel-
ecommunications companies to invest in
5G networks, their efforts and resources
can continue to be focused on improv-
ing and expanding 4G services and fibre
networks under JENDELA, so crucial for
the success of 5G deployment. This at the
same time will ensure that the digital gap
can be minimised,” it said in a statement
issued earlier.
with total Islamic assets under manage-
ment growing from 22% of overall assets
in 2017, to 24% by end of 2020 with a
total value of RM217 billion,” he added.
Zafrul also said through Malaysia’s
Shared Prosperity Vision 2030 (SPV
2030), the government is aiming to tap on
the RM3 trillion-US Dollar Halal market.
“Malaysia’s firm commitment in pro-
moting the Halal industry can be seen in
our 14 billion Ringgit investments to de-
velop Halal Parks, where Halal-oriented
businesses will benefit from infrastructure,
support services and tax incentives.
“This will not only drive Malaysia’s am-
bitions to be a global Halal hub, but will
also help the world become more resilient
post-Covid-19 pandemic, guided by the
Islamic economy’s core principles of so-
cio-economic and environmental sustain-
ability, as well as social equity, fair trade
and ethical consumerism,” he said.
KLIFF is an annual prestigious event in
the global Islamic finance space and is or-
ganised by Centre for Research and Training
(CERT) in association with Amanie Advi-
sors, Association of Islamic Banking Institu-
tions Malaysia (AIBIM), Association of Sha-
riah Advisors in Islamic Finance (ASAS),
and Messrs Hisham, Sobri & Kadir (HSK).

KUALA LUMPUR (March 9): Foreign
portfolio inflows are anticipated to be re-
versed in March, as global reflation trades
intensified, prompting a steepening of
long-term yields and bond sell-offs, said
UOB Malaysia.
Malaysia’s overall foreign portfolio in-
flows rose by RM6.3 billion in February,
compared with an increase of RM2.8 bil-
lion in January, said its senior economist
Julia Goh and economist Loke Siew Ting
in a note today.
This was mainly due to higher bond
inflows which rose by RM7. 2 billion and
offset further net selling of equities by
RM900 million, and brings year-to-date
bond inflows to RM10.9 billion.
Foreigners bought RM3.5 billion of
Malaysian Government Securities (MGS),
RM2.1 billion of Government Investment
Issues (GII), RM1.2 billion of Treasury
Bills, and RM300 million worth of Private
Debt Securities including private sukuk.
Bank Negara Malaysia’s foreign reserves
rose further by US$400 million m-o-m to
ruary, marked the 20th month of selling
Foreign portfolio with a cumulative reduction of RM32.8
inflows could billion since July 2019.
This brought foreign ownership of Ma-
reverse in March on laysian equities to a new low of 20.4% of
total market capitalisation in February,
higher inflation and compared with 20.7% in January.
Goh and Loke anticipated that higher
steep US treasury inflation expectations and steepening of
US Treasury yields may somewhat cap the
yields, says pace of capital inflows to emerging markets
(EM) in the near term.
UOB Malaysia Meanwhile, the Federal Reserve (Fed)
sees any inflation overshoot to be transitory
and more importantly, unlikely to sway the
BY SYAHIRAH SYED JAAFAR Fed away from its ultra-accommodative
theedgemarkets.com monetary policies, they noted.
“We expect the Fed to only start dis-
a near three-year high of US$109 billion as cussions of tapering its bond purchases in
at end of February, with the latest reserves late-2021 or early-2022. Fundamentally,
position sufficient to finance 8.6 months considering that major central banks con-
of retained imports and is 1.2 times total tinue to conduct bond purchases, and (the)
short-term external debt. prospect of balance sheet reduction lies far
Foreign investors selling off their Ma- in the future, there are potential headwinds
laysian equities by RM900 million in Feb- to significantly higher yields,” they wrote.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 5 THEEDGE CEO MORNING BRIEF

CM

MY

CY

CMY

K
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
Former finance
minister II Johari
emerges as
shareholder in
Media Prima as
share price tumbles
BY SULHI KHALID
theedgemarkets.com
KUALA LUMPUR (March 9): Former
finance minister II Datuk Seri Johari Abdul
Ghani has emerged as a shareholder in Me-
dia Prima Bhd after buying 109.7 million
shares in the open market today through
his private investment vehicle, JAG Cap-
ital Holdings Sdn Bhd, as the share price
of the group tumbled by 10%.
According to an exchange filing today,
Johari now has a direct 4.96% or 55 mil-
lion shares, and indirect 4.93% or 54.7
million shares in Media Prima following
a series of acquisitions.
Johari is a director of JAG Capital and CI
Holdings Bhd. He is also the chairman and
largest shareholder of KUB Malaysia Bhd.
As it stands, Bloomberg data reveals that
Aurora Mulia Sdn Bhd, a vehicle related
to billionaire Tan Sri Syed Mokhtar Al-
bukhary, is still the largest shareholder of
Media Prima with a holding of 31.9% or
353.82 million shares.
KUALA LUMPUR (March 9): AirAsia Group
Bhd group CEO Tan Sri Tony Fernandes said
the budget airline “can survive” just on domes-
tic traffic, which is about 50% of the group’s
business, Nikkei Asia reported today.
“That is very different from Singapore
Air (Singapore Airlines) or JAL (Japan Air-
lines Co Ltd) or ANA (All Nippon Airways
Co Ltd),” Fernandes was quoted as saying.
At the same time, Covid-19-related dis-
ruptions can actually make doing business
easier, Nikkei Asia reported, quoting Fer-
nandes. It was reported that it took Fer-
nandes seven years to get the Kuala Lum-
pur-Singapore route for AirAsia Group.
“(But) it took me seven weeks to open
AirAsia food in Singapore,” Fernandes said.
For all the pain due to the Covid-19
pandemic, it was reported that Fernandes
concluded this a “once-in-a-lifetime chance
where you can really pivot”.
It was reported that AirAsia Group under
Fernandes’ leadership is pivoting into fintech
and payments in a big way. It was reported that
the group is working on opening a new neo-
6 THEEDGE CEO MORNING BRIEF
H O M E
Media Prima Bhd
Vol (mil) Sen
40 80
30 62.5 sen
60
20
40
10
25 sen
0 20
Dec 9, 2020 March 9, 2021
Source: Bloomberg
Meanwhile, investment bank and fi-
nancial services company Morgan Stan-
ley is the second largest shareholder with
12.83% or 142.34 million shares.
Recently, Media Prima returned to the
black with a net profit of RM18.84 million
for the fourth quarter ended Dec 31, 2020
(4QFY20), from a net loss of RM104.46
million a year ago, underpinned by lower
operating expenses achieved through its
cost optimisation initiatives.
For the full FY20, the group’s net loss
narrowed 90% year-on-year to RM18.38
million from RM177.85 million, driven by
the group’s transformation exercise, which
contributed to lower operating expenses
in FY20.
Shares of Media Prima ended seven
sen or 10.07% lower to 62 sen, giving it a
market capitalisation of RM693 million.
Since the beginning of the year, the stock
has risen by 119%.
Tony Fernandes
says AirAsia ‘can
survive’ just on
domestic traffic
BY WONG EE LIN
theedgemarkets.com
bank in Malaysia and Singapore, by tapping
into the region’s biggest loyalty programme.
“This fintech footprint is expanding to
Singapore and soon to Indonesia, the Phil-
ippines and Thailand.
“AirAsia’s logistics arm has also rolled out
a digital network to modernise air cargo us-
ing distributed ledger blockchain technology,
called Freightchain,” Nikkei Asia reported.
Logistics, it turns out, “is the real jewel
in the crown that I never really saw”, Fer-
nandes said.
Star Media Group
appoints ex-
housing minister
Chor Chee Heung
as new chairman
effective March 15
BY TAN SIEW MUNG
theedgemarkets.com
HARIS HASSAN/THE EDGE
Tan Sri Chor Chee Heung
KUALA LUMPUR (March 9): Star
Media Group Bhd has appointed Tan
Sri Chor Chee Heung as its independ-
ent and non-executive chairman, effec-
tive March 15.
Chor, 66, will replace Datuk Fu Ah
Kiow, who resigned as the group’s di-
rector and chairman on March 1.
According to a bourse filing, Chor
was the member of Parliament for the
Alor Setar constituency in Kedah for
five terms between 1990 and 2013. He
was also the minister of housing and
local government, deputy minister of
home affairs and deputy minister of fi-
nance between 2008 and 2013.
Prior to that, he was appointed par-
liamentary secretary in the Ministry of
Transport and deputy home minister
between 1996 and 2004. Between 2015
and 2017, Chor was commissioner of
the Malaysian Aviation Commission
(Mavcom) and an advisor at Melati
Ehsan Holdings Bhd.
He was also an independent director
of JAKS Resources Bhd — which filed a
counterclaim against Star Media Group
after the group initiated legal action over
the purchase of its land in Petaling Jaya,
Selangor — from 2004 to 2007. Chor
was also made an independent director
at Tenaga Nasional Bhd between 2015
and 2018.
Star Media shares closed 2.5 sen or
5.75% lower at 41 sen, valuing the com-
pany at RM324.96 million.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
KUALA LUMPUR (March 9): Malaysian
Resources Corp Bhd (MRCB) is set to make
its mark in New Zealand via a partnership
with Panuku Development Auckland to de-
velop the Aotea Central Over Station De-
velopment (OSD) with a gross development
value (GDV) of RM1.3 billion (NZ$452
million) in Auckland City Centre.
The urban regeneration develop-
ment above City Rail Link’s Aotea Sta-
tion spreads across 1.08 acres with a total
gross floor area of approximately 45,292
square meters.
The site is formerly a car park used for
Auckland Council fleet parking at the in-
tersection of Mayoral Drive and Wellesley
Street.The new development will comprise
a 21-storey building with a mixture of re-
tail and commercial space and 63 luxury
apartments with integrated access to Aotea
Station. The location and views, coupled
with unrivalled convenience and ameni-
ties, will attract astute investors and own-
er-occupiers.
The OSD will begin after the construc-
tion of the City Rail Link’s Aotea Station,
which is due to be completed in 2024.
In a statement, MRCB group managing
director Imran Salim said he was pleased
that Panuku has provided the opportunity
for the group to contribute to Auckland’s
development landscape.
Shahidan Kassim
appointed
new PR1MA
chairman
Bernama
KUALA LUMPUR (March 9): Arau
Member of Parliament (MP) Datuk Seri
Dr Shahidan Kassim has been appoint-
ed the chairman of Perbadanan PR1MA
Malaysia (PR1MA), effective immediately.
In announcing the matter, Housing and
Local Government Minister Datuk Zurai-
da Kamaruddin said Shahidan’s five-term
experience as an elected representative and
his vast experience in governance are need-
ed to boost PR1MA’s performance.
His experience as the Perlis menteri be-
sar and a minister in the Prime Minister’s
Department can help PR1MA to achieve
its mission of providing affordable housing
in the country, Zuraida said during a visit
to the PR1MA headquarters here today.
She also announced the appointment of
Shahidan as the chairman of the National
7 THEEDGE CEO MORNING BRIEF
H O M E
MRCB to
develop RM1.3b
GDV mixed-
use project in
Auckland
BY JUSTIN LIM
theedgemarkets.com
“MRCB is thrilled to extend its trans-
port-oriented development (TOD) ex-
pertise to deliver an iconic landmark
development in New Zealand. With our
knowledge, skills, and experience in devel-
oping the award-winning Kuala Lumpur
Sentral CBD, we envision that the OSD
will be an exemplary mixed-use TOD that
positively contributes to and enhances the
city’s growth,” said Imran.
He added that the OSD will be an inclu-
sive urban regeneration project that focuses
on the capacity for participatory, integrat-
ed, and sustainable infrastructure, in line
with the group’s commitment to the Unit-
ed Nations sustainable development goals.
Meanwhile, the Mayor of Auckland Phil
Housing Corporation (NHC).
The NHC, established under the Min-
istry of Housing and Local Government,
is an entity that will coordinate all housing
development agencies in terms of planning
and preparing financial plans for the con-
struction of affordable houses (RMM).
Shahidan’s appointment as the PR1MA
chairman is to replace Tan Sri Eddy Chen
who held the post in 2018.
Meanwhile, Zuraida said among the
NHC’s focus is to carry out research and
strategic housing planning, as well as over-
Goff said the development is set to have a
positive impact on the city centre.
According to him, the project will re-
place what was once a car park with mod-
ern, well designed, and high-density hous-
ing and shops as well as commercial spaces
in the heart of the city. Central Auckland is
destined to become an even more vibrant
place to live and work for the 40,000 resi-
dents and 130,000 people who work there.
“Ensuring the right type of develop-
ment partner was key. On behalf of the
Auckland Council, we sought a particular
type of development partner who would
understand the rare opportunity to con-
tribute to the regeneration of this unique
mid-town location. MRCB has a long his-
tory of quality TODs in Malaysia and is
committed to transforming the Mayoral
Drive site to appeal to those wanting vi-
brant inner-city living and a low carbon
lifestyle right in the centre of Auckland,”
said Panuku chief executive David Rankin.
According to the statement, Panuku is a
council-controlled organisation established
to deliver urban regeneration in Auckland.
They work across multiple locations and
scales — from large long-term urban re-
generation projects to small projects on
specific sites — to meet the needs of the
city’s long-term growth, including the re-
quirement for more affordable homes.
BERNAMA
come the issue of imbalanced housing sup-
ply and demand, especially for affordable
housing.
“It will also look at several matters, in-
cluding the act, licensing and enforcement
of housing legislation to safeguard the in-
terests of all parties involved in the hous-
ing industry, such as buyers, developers,
contractors and financiers.”
The NHC’s establishment is also aimed
at managing housing incentives, rental
schemes, home financing, maintenance
and overhang units.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 8 THEEDGE CEO MORNING BRIEF

H O M E

Hit on multiple fronts in 2020, here are 5 key

indicators to gauge how top banks fared
BY SYAHIRAH SYED JAAFAR
theedgemarkets.com

KUALA LUMPUR (March 10): Banks

were hard pressed last year after being hit
on multiple fronts — from record low in-
terest rates to high modification losses,
followed by increased provisions as banks
manage the impact of the loan moratorium
on their books.
With the worst of the Covid-19 pan-
demic impact on financial performance
behind them, banks are now expected to
perform better this year, although remain-
ing cautious, supported by recovery in net
interest income growth and a decline in
loan loss provisioning.
The Edge takes a look at some key finan-
cial indicators of the top five banks in Ma-
laysia for the financial year 2020 (FY20),
to gauge how they fared in the pandemic
year and position themselves for an expect-
ed recovery this year.

Loan growth
Most banks recorded loan growth higher
than the industry average of 3.4% in FY20,
contributed from both the household and
business segments. Malayan Banking Bhd
(Maybank), Public Bank Bhd and RHB
Bank Bhd recorded loan growth of 4%,
5.4%, 4.5% respectively for their domes-
tic operations.
Hong Leong Bank Bhd, whose FY20
ended on June 30, 2020 halfway through
the pandemic, recorded a loan growth of
6.1%.
CIMB Group Holdings Bhd meanwhile,
was the only exception as it saw a decline
of 1%.
With 2020 behind, banks maintained a
conservative stance moving into 2021, with
their loan growth target this year of between
4% and 5%, as they remain cautious on
their outlook of the economic recovery.
CGS-CIMB Research said it has low-
ered its loan growth forecast on banks to
between 2% and 3%, from 4% and 5%
previously, after it lowered its gross do-
mestic product (GDP) forecast to 5% from
7.5% previously.
In fact, the research house noted that “This does not bode well for banks’ Asset Quality
trends in the leading loan indicators weak- loan growth in the next 1-2 months, in Higher provisions in FY20 did put a strain
ened, as the growth in loan applications our view,” CGS-CIMB analyst Winson Ng on banks’ asset quality. However, data
moderated from 12.3% y-o-y in December wrote in a note. shows that gross impaired loans (GIL) ra-
to 9.7% y-o-y in January, while the con- Overall, loan growth for the month of tio actually decreased across most banks,
traction in loan approvals widened from January inched up to 3.8% from 3.4% in except for CIMB Group, as it was affect-
0.1% y-o-y in December to 3.5% y-o-y December, supported by the household ed by exposure to the oil and gas sector.
in January. and business segment. CO N TI N UES O N PAGE 9
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 9 THEEDGE CEO MORNING BRIEF

H O M E

FROM PAGE 8 ic-related repayment assistance.

Amongst the top five banks, Public The proportion of loans under assis-
Bank’s GIL was the lowest in FY20. tance for these banks increased to 13%
“Public Bank is our top pick for the on average in February from 11% in No-
sector, as we believe it is the most defen- vember 2020, said Moody’s.
sive against the credit risk arising from the Meanwhile, Hong Leong Bank’s loans
Covid-19 pandemic. under assistance declined to 7% in Janu-
This is supported by its strong track re- ary, from 8% in November 2020.
cord with its GIL ratio consistently the low- It noted that the increase in loans un-
est in the sector,” said CGS-CIMB’s Ng. der assistance is consistent with increased
Nonetheless, Malaysian banks still have unemployment and underemployment re-
strong capitalisation and loan-loss cover- ducing borrowers’ incomes.
age to buffer losses, Moody’s Investors
Service said. ROE
On average, it noted that the five banks’ Frontloading of provisions affected the
Common Equity Tier 1 capital ratio was return on equity (ROE) of certain banks
stable at around 14.4% at year-end 2020, more than others, which could explain the
compared with 14.3% a year earlier; while diverse range in their performance in FY20.
the average loan-loss coverage ratio im- Public Bank’s ROE of 11.2% is a spike
proved to 148% from 94%, as a result of compared to the rest of its peers, which
efforts to front-load provisions. could be explained by lower provisions
MIDF head of research and analyst incurred coupled with better performance
Imran Yassin Yusof said among his top in non-interest income, one analyst com-
banking stock picks is Hong Leong Bank mented anonymously.
for its stable asset quality and large loan CO N TI N U ES O N PAG E 10
loss reserve.

Repayment Assistance
Still, the loans portion with repayment as-
sistance, which has mostly risen, pose risks
to banks’ asset quality, noted Moody’s, and
is credit negative for the banks because of
a greater proportion of loans risk becom-
ing delinquent when this assistance ends
in June, especially if economic growth re-
mains subdued.
The government’s Targeted Repayment
Assistance scheme was announced in No-
vember last year, to support borrowers
whose repayment capacity was affected
due to pandemic-related disruptions to
their incomes.
Maybank, Public Bank, RHB Bank and
CIMB each reported an increase in loans
with reduced or deferred instalments —
these are loans that benefit from pandem-
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
KUALA LUMPUR (March 9): Indus-
try experts have questioned the absence
of direct evidence against Sime Darby
Plantation Bhd (SDP) on unsubstantiat-
ed forced-labour allegations, according to
a report by Asia Times today.
The news portal added that pressure is
mounting on US officials to provide evi-
dence to support a ban slapped on SDP,
one of the world’s largest producers of
sustainable palm oil, after the US Cus-
toms and Border Protection (CBP) issued
a Withhold Release Order (WRO) last year
following information supplied by anti-traf-
ficking group Liberty Shared.
Accordng to the report, industry experts
highlighted the lack of details of interviews
with workers the non-governmental or-
ganisation had purportedly conducted, as
well as dates, names or specific locations
to back up its claims.
To recap, on March 1, SDP established
an Expert Stakeholder Human Rights As-
sessment Commission and appointed Im-
pactt Ltd as a third-party assessor to con-
duct a comprehensive evaluation of the
group’s labour practices across its Malay-
sian operations.
SDP added that the commission will
also comprise a stakeholder consultation
panel which will be providing additional
views on Impactt’s assessment methodol-
ogy, lending further credibility to the en-
tire process.
The panel also is expected to review
whether or not forced labour indicators are
detected within the group’s operations, and
if there are any, to determine how preva-
lent the issue is, said the group.
“The well-being of our 30,000 work-
ers is of paramount importance to us and
thus, our focus is to address the WRO and
to understand what the actual allegations
against us are, so we can take corrective
measures where necessary.
“We are very conscious that it has
been nearly a year since the petition
was filed, a year during which we could
have closed any gaps in the implemen-
tation of our policies, had we received
FROM PAGE 9
Meanwhile, CIMB reported the low-
est among the lot of 2.1% in FY20, as it
was affected by weaker performance in
Indonesia, the analyst added.
A rough calculation shows that the
average ROEs for Malaysian banks are
currently at about 7%, however analysts
are expecting this average to rise to nearly
9% by FY22. Looking at their FY21 esti-
mates, it is not too far off from the FY20
performance. However, CIMB shows the
biggest estimated jump of 6.7% in FY21.
10 THEEDGE CEO MORNING BRIEF
H O M E
Industry experts
question lack of
proof to back up
claims of forced
labour use by
Sime Darby
Plantation
— report
BY SULHI KHALID
theedgemarkets.com
the necessary information.
“Thus far, useful information from the
actual complainant has not been forth-
coming,” an SDP representative told Asia
Times.
Meanwhile, WWF-Malaysia’s Benja-
min Loh called the ban “a surprise” after
having worked closely with the plantation
company for over two years to enhance
its no-deforestation and no-exploitation
approaches.
“We are wondering, what [are] the key
criteria that they need to address? What
are the key points that involve exploita-
Dividend yield
Maybank’s dividend per share (DPS) in
FY20 amounted to 52 sen, translating to
a yield of 6.4% and the highest amongst
its peers, while the rest saw a yield of be-
tween 1% and 3%.
Maybank’s high DPS comprises an in-
terim dividend of 13.5 sen per share and
a final single tier dividend of 38.5 sen that
had a 21 sen electable portion under its
dividend reinvestment plan.
The average yield for the sector was
4.1% in FY20 and analysts have a con-
tion and human rights? But unfortunately,
the information is not there. There’s very
little evidence that proves this to us. With
the track record of Sime Darby, and that
they have been transparent and quite clear
with us as to what they are doing, it is a
surprise,” he said, adding that he had not
heard of Liberty Shared before the alle-
gations surfaced.
Echoing Loh’s sentiments was M R
Chandran, a founding member of the
Roundtable on Sustainable Palm Oil.
“In the case of SDP, many of their mills
are certified by the International Sustaina-
bility and Carbon Certification, or ISCC,
and the group itself has ISO certifications.
“They have multiple certifications and
it is puzzling because the allegations indi-
cated that the auditors of all the certifica-
tions were not doing their job,” he said.
According to the report, while full de-
tails of the allegations against SDP have
not yet been published by either Liberty
Shared or the CBP, the former’s petition
shared similarities with a report called
“Cruel Outcomes” that it published last
September, three months before the peti-
tion was filed.The report contained a chart
of International Labour Organization in-
dicators that also appeared in the petition.
However, while the “Cruel Outcomes”
report used this chart to record alleged
failures by FGV Holdings Bhd, SDP, IOI
Group and Wilmar International Ltd, the
petition submitted to the CBP used the
same chart to suggest failures by SDP
alone.
The CBP has declined to go into spe-
cific details of SDP’s case, saying that it
had “had communications” with repre-
sentatives of Sime Darby.
At the time of writing, shares of SDP
traded two sen or 0.41% higher at RM4.92,
giving it a market capitalisation of RM33.8
billion.
Read also: Eurocham monitoring FGV
and Sime Darby Plantation’s ban by US
Customs & Border Protection Click here
servative estimate of 4% in FY21.
RHB Bank’s decent dividend yield of
3.3%, coupled with good operating ex-
penditure, makes it a top pick for MIDF
head of research and analyst Imran Yassin
Yusof, who is now projecting for yield to
come in higher at 4.7% in FY21.
CGS-CIMB is also projecting a higher
yield for RHB, with an estimate of 5.5%
yield in FY21, the highest amongst its
projections for all other banks including
Maybank, which it estimates to record a
yield of 4.8% in FY21.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
KUALA LUMPUR (March 9): As a re-
sult of the federal government’s silence
on the proposed RM1.4 billion Sultan
Ibrahim Solar Park in Pengerang, the
ground-breaking ceremony for the pro-
ject scheduled for March 23 has been can-
celled.
Sultan Ibrahim Ibni Almarhum Sultan
Iskandar of Johor, who announced this in
his official Facebook account today, said
he does not see any reason why Putra-
jaya would not be willing to give Johor a
chance to be an eco-friendly producer of
electricity.
“We have a suitable plot for the project,
robust growth and development, as well
as a healthy demand from our neighbour,
which makes Johor the most strategic lo-
cation,” he said.
The ruler of Johor announced the pro-
ject on Feb 28, saying it would be the
biggest of its kind in the region with a
capacity of 450 megawatts.
KUALA LUMPUR (March 9): Full-
fledged integration construction engineer-
ing group Vizione Holdings Bhd has inked a
memorandum of collaboration with Negeri
Sembilan government agency NS Corp for
the development of Malaysia Vision Valley
2.0 (MVV 2.0).
In a statement to Bursa Malaysia today,
its executive director Chan Chee Wing said
their current discussions centre on a de-
velopment in stages, with the first phase
being an international high speed process-
ing, logistics, and distribution hub (IPLD
hub) that will be part of a proposed free
trade zone.
“This development is to cater for exist-
ing huge demand for such facilities. Free
trade zones have proven to be one of the
best catalysts of regional economic devel-
opment,” he said.
MVV 2.0 is an economic growth corri-
dor initiated by the Negeri Sembilan state
government. The state-led private sec-
tor-driven integrated economic develop-
ment spans about 153,411ha of land cover-
11 THEEDGE CEO MORNING BRIEF
H O M E
Johor Sultan
The multi-billion project was set to
become the largest solar power storage
cancels RM1.4b
system in Southeast Asia when fully op-
erational by 2023.
solar project’s
The solar park was also Johor’s first
major private investment in 2021 and the
ground-breaking
result of Sultan Ibrahim’s continued ef-
forts to draw investment and development
ceremony,
to boost the socio-economic well-being of
the people in the state.
blaming
Sultan Ibrahim also stated that the pro-
ject was in line with the 2030 Johor Sus-
Putrajaya’s silence
tainable Development Plan, which places
major emphasis on environmental preser-
vation and protection as part of the state’s
economic development plan for a more
BY SULHI KHALID prosperous society.
theedgemarkets.com It would also have a positive economic
spillover effect on the state, with job cre-
ation at various levels, as the solar park
would be the region’s largest solar ener-
gy storage system when fully operation-
al, he said.
Vizione in talks
telligence, internet of things deployment,
electronic data interchange framework, high
with Negeri
speed connectivity and automation features.
“With our construction expertise, we
Sembilan
can design and build these next genera-
tion smart factories, distribution centres
government
and support facilities, customised to our
customers’ requirements within record
agency for
time with support from governmental au-
thorities.
Malaysia Vision
“Cognisant of the rising awareness of
sustainability issues globally, especially for
Valley 2.0
multinational corporations, the entire de-
velopment would be a truly green industrial
development
and distribution hub with integrated solar
power generation, and systematic recycling
and disposal of industrial waste with con-
trolled identification, in addition to ample
BY SYAFIQAH SALIM green landscaping and efficient green de-
theedgemarkets.com sign.This is in line with our proposed diver-
sification into renewable energy,” he said.
ing districts of Seremban and Port Dickson According to Chan, Vizione is excited
(Master Land). with the huge prospects ahead for the MVV
Chan noted Vizione intends to equip 2.0 development as this will be game-chang-
the industrial facilities with artificial in- ing for the group as well.
“Our focus now is to bring the fruitful
discussions with NS Corp to the next level
via a definitive arrangement or agreement.
This foray into the IPLD hub is in line
with our selective expansion into [the] high
technology industrial sector which remains
one of the best performing subsegment of
the development industry,” Chan added.
Should the collaboration materialise,
Vizione said it is expected to contribute pos-
itively to the future earnings of the group.
Vizione shares closed half a sen or 1.64%
lower at 30 sen today, with some 10.11 mil-
lion shares done.This gave the group a mar-
ket capitalisation of RM236.56 million.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
PUTRAJAYA (March 9): The East Coast
Rail Link (ECRL) has been further en-
hanced by extending the original alignment
of 640 kilometres (km) to 665km as a more
efficient rail alignment system.
Transport Minister Datuk Seri Dr Wee
Ka Siong said the additional alignment
will encompass the original 30km which
is 24km from Jalan Kastam (Port Klang)
to West Port and 6km from Jalan Kastam
to the North Port.
“This is the reason why we have to build
a land bridge and optimise the usage of rail.
“The primary objective of constructing
ECRL is as a cargo route which is 70%
cargo and 30% passengers. So we need to
ensure there are returns,” he told an MOT
Malaysia Prihatin Achievement interview
recently.
“An overall study was also carried out
to improve ECRL logistic advantages es-
pecially involving issues of train conges-
tion and safety currently faced by going
through KL Sentral. At the same time, we
are also offering better passenger service
KUALA LUMPUR (March 9): Flexidy-
namic Holdings Bhd — which is principally
involved in the design, engineering, instal-
lation and commissioning of glove chlorin-
ation systems for the glove manufacturing
industry — aims to raise up to RM15.05
million in proceeds at its upcoming initial
public offering (IPO).
From this, a total of RM6.38 million
has been allocated to repay the bank bor-
rowings drawn to fund the acquisition of
new factories and RM420,000 for the ren-
ovation of the new factories in the next 12
months, while RM1.63 million has been
allocated for the purchase of machinery
and equipment in the next three months.
A further RM3.62 million of the pro-
ceeds will be allocated for working capital,
whereas the remaining RM3 million will be
utilised to defray estimated listing expenses.
The group is targeting to list on the ACE
Market of Bursa Malaysia on March 30,
2021 according to its prospectus that was
launched today.
The IPO will involve a public issue of
75.231 million shares at an issue price of
20 sen per share. With an enlarged share
capital of 283.89 million upon listing, the
group is expected to have a market capi-
talisation of RM56.78 million.
From the public issue, 14.195 million
shares will be available for application by
the Malaysian public, while 4.258 million
shares will be allocated for eligible employ-
ees and persons who have contributed to
the success of Flexidynamic, whereas an-
other 56.778 million shares will be offered
via private placement to selected investors.
12 THEEDGE CEO MORNING BRIEF
H O M E
ECRL alignment
with connectivity to other public transport
to Kuala Lumpur via Gombak Integrated
extended to
Terminal.”
Wee stressed that the success of ECRL
665km, says Wee
is not only reverting to its original align-
ment but with improvement by passing
through Serendah and linking Port Klang,
with West and North Port.
Bernama “In terms of engineering cost, it only
involved about RM50 billion compared to
RM46.379 billion which did not include
land acquisition which would take it to
more than RM54 billion,” he said.
All technical problems faced by the
mega project such as heritage sites, Orang
Asli settlements and dams have been am-
icably resolved.
The project, which is expected to be
ready in 2026, has reached 20.37% com-
pletion in January 2021 compared to the
original schedule of 19.39%.
“The progress is due to Section B
(Dungun-Mentakab) which was 9.47%
completed compared to 5.83% as sched-
uled,” he said.
ACE Market-
of our on-line glove chlorination system.
“We now have one factory and will be
bound glove
taking vacant possession of two factories
adjacent to our current factory that are cur-
chlorinations
rently being renovated.These new factories
will be used to carry out in-house manufac-
systems provider
turing works for the parts and components
of our on-line glove chlorination systems
Flexidynamic
that we currently outsource to our subcon-
tractors,” Flexidynamic managing direc-
to raise up
tor Tan Kong Leong said during a media
briefing to launch the prospectus.
to RM15.05m
Flexidynamic’s principal adviser, sole
placement agent, sole underwriter and
from IPO
sponsor in relation to the IPO is M&A
Securities Sdn Bhd.
Tan said the group currently has an or-
der book of RM84.63 million as of Feb-
BY SYAHIRAH SYED JAAFAR ruary 2021, of which RM62.3 million is
theedgemarkets.com expected to be recognised this year.
Its Malaysia operations currently ac-
count for more than 60% of the group’s
revenue, followed by Vietnam and Thailand,
Indonesia and Sri Lanka.
Amongst its glove manufacturing cus-
tomers are Hartalega Holdings Bhd, Ko-
ssan Rubber Industries Bhd, Riverstone
Group, HLT Global Bhd, Sri Trang group
and Ever Global (Vietnam) Enterprise Cor-
poration, said Tan. The group intends to
increase its customer base in the future.
“We are ready for the next stage of
“We are using part of the proceeds from growth as we expect demand for rubber
the IPO to expand Flexidynamic’s current gloves will continue to be high for the fore-
manufacturing capacity in Banting to sup- seeable future due to heightened aware-
port our growth while mitigating risks by ness on how protective gear can help curb
reducing reliance on third-party subcon- the spread of diseases such as Covid-19,”
tractors for crucial parts and components said Tan.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
Scientex 2Q net
profit up 15%
to RM112m on
robust property
sales
BY TAN SIEW MUNG
theedgemarkets.com
KUALA LUMPUR (March 9): Scien-
tex Bhd said its latest quarterly net profit
rose 15.07% to RM112.17 million, from
RM97.47 million a year earlier, on robust
property sales and construction progress,
as well as stable packaging segment con-
tributions.
Revenue for the second quarter end-
ed Jan 31, 2021 (2QFY21) slipped by a
marginal 0.86% year-on-year (y-o-y) to
RM906.55 million, from RM914.38 mil-
lion, dragged by lower packaging revenue.
The group did not declare any dividend
for this quarter.
In a filing with Bursa Malaysia, Scientex
said its packaging revenue for the quar-
ter fell 6.2% to RM618.8 million, due to
lower sales tonnage amid challenges in the
global economy.
The recent raw material cost hike and
sudden surge of freight cost due to the
global shortage of shipping containers also
led to lower operating profit of RM63 mil-
lion, compared with RM65.2 million a year
ago, the group said.
Meanwhile, its property revenue in-
creased 12.9% y-o-y to RM287.8 million,
driven by steady site construction progress
in its development at Scientex Taman Pulai
Mutiara 2 in Johor and Scientex Durian
Tunggal in Melaka.
In tandem with the higher revenue,
13 THEEDGE CEO MORNING BRIEF
H O M E
the segment’s operating profit rose to
RM86.2 million, from RM75.6 million
a year ago.
For the cumulative first half end-
ed Jan 31, 2021, the group’s net prof-
it grew 14.72% to RM204.7 million,
from RM178.44 million a year earlier.
Half-year revenue, however, dropped
4.63% to RM1.71 billion, from RM1.79
billion.
Scientex chief executive officer Lim
Peng Jin said the group is cautiously op-
timistic that the global packaging market
would post a gradual but firm recovery
on the back of improving economies
and with global vaccination efforts un-
derway.
“We would also focus on improving
production efficiency to drive down opera-
tional costs as we look to rebound strongly
from this uncertain period,” he said.
Meanwhile, the group expects to launch
its first development on the Jasin land in
the fourth financial quarter while the Ser-
emban land is expected to be launched in
early 2022, marking the group’s maiden
entry into Negeri Sembilan.
Lim said the group’s total land bank
would increase to more than 5,800 acres
across Johor, Melaka, Negeri Sembilan,
Selangor, Perak, Penang and Kedah, which
is sufficient for more than 10 years of de-
velopment activities.
“Our latest ambitious land bank ex-
pansion initiatives would go a long way
in helping us meet our goal of building
50,000 affordable homes by 2028, with
more than 22,000 already built to date,”
he said.
Scientex’s share price fell one sen or
0.25% to RM4 today, valuing the group
at RM6.19 billion.
Read also: Daibochi 2Q net profit up
3.2% despite higher raw material prices
and freight costs Click here
Eddie Ong
emerges as largest
shareholder of
Complete Logistic
BY SULHI KHALID
theedgemarkets.com
KUALA LUMPUR (March 9): Busi-
nessman Datuk Eddie Ong Choo Meng
(pic) has emerged as the largest share-
holder of Complete Logistic Services
Bhd after acquiring 29.18% or 37.45
million shares from Dolphin Assets Sdn
Bhd in an off-market transaction today,
the group said in a filing exchange.
Notably, Ong is also a major share-
holder of listed companies such as
Hextar Global Bhd, SCH Group Bhd,
Rubberex Corp (M) Bhd, SWS Cap-
ital Bhd and more recently Opcom
Holdings Bhd.
Meanwhile, according to a Bursa
Malaysia filing yesterday, Ong’s rep-
resentative Teh Li King was appoint-
ed to Complete Logistic’s board as a
non-independent and non-executive
director effective March 8, 2021.
Teh, 42, is currently the group chief
corporate officer of Hextar Group
of Companies. He is also a director
of furniture and plasticware mak-
er SWS Capital, a non-independent
and non-executive director of Opcom
while concurrently serving as a director
of several private limited companies.
Complete Logistic also announced
the resignation of its executive direc-
tor Leon Law Li Yion, 28, citing per-
sonal reasons.
Just before his resignation, Law
disposed of a total of 51.33 million
shares in the group held directly and
indirectly via Dolphin Assets, leaving
his current holding to merely 5.15%
or 6.6 million shares.
Shares of Complete Logistic
ended 22 sen or 13.41% lower at
RM1.42, valuing the logistics com-
pany at RM183 million.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
Serba Dinamik subsidiary secures
Petronas LNG Complex contract
KUALA LUMPUR (March 9): Serba
Dinamik Holdings Bhd (SDHB) said today
its indirect wholly-owned Serba Dinamik
Sdn Bhd (SDSB) has secured a term
contract involving rotating equipment
maintenance services for the Petronas
LNG Complex Malaysia from Malaysia
LNG Sdn Bhd. In a bourse filing, SDHB
said the contract, which began on Feb
19, 2021 and scheduled for completion
on Sept 30, 2022, has no specific value
as it is “on a call-out basis”, whereby
work orders will be awarded at the
discretion of the client based on agreed
activity schedules and rates. The group
has also secured another operations
and maintenance (O&M) contract and
three information, communication
and technology (ICT) projects, with a
combined estimated value of US$99.6
million (approximately RM408.8 million).
The Indonesia-based O&M contract
was secured via its 75%-owned unit
PT Serba Dinamik Indonesia from PT
Pilar Bahtera Energi. The three ICT
projects, meanwhile, are based in
India; one was secured from Captive
Technology Solutions Pvt Ltd, while two
others were from Analog and Digital
Labs India Private Ltd.— by Wong Ee Lin/
theedgemarkets.com
Komarkcorp receives letter of intent
to export 48 million medical-grade
masks to the US
KUALA LUMPUR (March 9): Komarkcorp
Bhd said it has received a letter of intent
from Poland-based Robayu Corp to
export 48 million pieces of three-ply
medical-grade masks to the US. The order
is expected to be valued at US$4.8 million
to mirror European pricing counterparts,
and will be carried out over 12 months,
the group said in a bourse filing today.
Komarkcorp said the letter of intent
follows the US Food and Drug
Administration (FDA) certification
received by its unit Komark Mask (M) Sdn
Bhd for its three-ply disposable medical
masks, which are now fully certified and
listed on the FDA website. The definitive
agreement and purchase order are
expected to be finalised and confirmed
within 60 days, with initial delivery slated
to commence in the third quarter of the
year. The group currently manufactures
its masks at its flagship Balakong
plant with a built-up area of 150,000
square feet. — by Syahirah Syed Jaafar/
theedgemarkets.com
14 THEEDGE CEO MORNING BRIEF
H O M E
NEWS IN BRIEF
MMAG now second largest shareholder in Dynaciate
KUALA LUMPUR (March 9): MMAG Holdings Bhd has emerged as the second largest
shareholder in Dynaciate Group Bhd with a 9.92% stake after participating in the latter’s
private placement. In a filing today, Dynaciate said MMAG has subscribed to 65.88 million
shares in the company at 12.4 sen per share or RM8.17 million. The stock was last traded
at 15 sen, valuing the group at RM89.72 million. Subsequent to the exercise, MMAG’s
24.4% shareholder Chan Swee Ying also emerged as an indirect shareholder in Dynaciate.
Chan is also an executive director of Vortex Consolidated Bhd, in which she owns a 24.82%
stake. Following the placement, Dynaciate’s largest shareholder Dynaciate Engineering
Sdn Bhd saw its stake diluted to 9.98%, from 11.23% previously. Dynaciate Engineering is
controlled by the listed firm’s executive directors Khoo Song Heng and Woon Kok Kee. —
by Adam Aziz/theedgemarkets.com
In response to UMA query, Artroniq Kanger to receive 10,000 doses of
says in talks with potential Sinopharm Covid-19 vaccine in May
investment for new business for trial purposes
KUALA LUMPUR (March 9): Artroniq KUALA LUMPUR (March 9): Kanger
Bhd, which was issued an unusual market International Bhd will receive 10,000 doses
activity (UMA) query by Bursa Securities, of a Covid-19 vaccine developed by state-
said it is in discussions with potential owned China National Pharmaceutical
investments for its new business. In a Group Corp (Sinopharm) for trial purposes.
bourse filing, Artroniq said it has been In a bourse filing, the group said the first
monetising its manufacturing business’ batch is expected to arrive in May, and that
assets, which had ceased, as well as it will be getting the necessary approvals
other non-core assets, besides exploring from the relevant authorities. Sinopharm
options to identify suitable businesses has Covid-19 vaccine candidates that
and acquisitions to expand its business are undergoing stage 3 clinical trials. The
in the distribution of information and announcement was made in reference to
communication technology (ICT) products Kanger’s plan to rope in K-Star Sports Ltd
and related activities. “The company is still and Zuellig Pharma Sdn Bhd to distribute
in the midst of discussions on the above the vaccine. In October 2020, Kanger signed
and will make the relevant announcements an agreement with vaccine distributor
in accordance with the Bursa Securities Zuellig Pharma for the latter to facilitate
Listing Requirements in the event of any the import, warehousing and distribution of
material development pertaining to the Covid-19 vaccines in Malaysia. Kanger also
above,” it said. Last Friday, the group was inked a deal with K-Star to appoint the latter
slapped with a UMA query from Bursa as the sales agent of Covid-19 vaccines for
after its share price soared 30.43% or 24.5 private clinics in Malaysia. Last September,
sen to close at RM1.05 with some 61.32 Kanger announced that it would be the
million shares. At noon break, Artroniq distributor of Covid-19 vaccines and medical
shares settled nine sen or 9.78% lower equipment products in Malaysia for China-
at 83 sen, for a market capitalisation to based Sinopharm Group Hunan Changde
RM239.81 million.— by Syafiqah Salim/ Medical Co Ltd. — by Arjuna Chandran
theedgemarkets.com Shankar/theedgemarkets.com
Dataprep shares hit limit up as trading volume pares down
KUALA LUMPUR (March 9): Shares of Dataprep Holdings Bhd closed at limit-up on
Tuesday, taking cue from the technology-themed rebound despite a gradual decline in
trading volume over the counter. Dataprep shares closed 61 sen or 29.9% higher at its
fresh record high of RM2.65, with 69.3 million shares traded — about one-fifth its trading
volume seen in mid-February, which saw some 380 million shares traded when the share
price rally first started. The counter was the second top gainer across Bursa Malaysia today.
Year to date, its share price has swelled around 14 times. Last week, Dataprep was issued
an unusual activity query from Bursa Securities. In response, Dataprep said other than its
February news of a 51% stake buy in multimedia hardware and component distributor
Ridaa Associates Sdn Bhd, and a private placement, there were no other rumours or reports
that could have accounted for the UMA. The loss-making firm last turned a profit in the
financial year ended March 2007, with a net profit of RM1.94 million. At its last close,
Dataprep has a market capitalisation of RM1.6 billion. — by Adam Aziz/theedgemarkets.com
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 15 THEEDGE CEO MORNING BRIEF

Anytime
Anywhere
We are here to keep you informed
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
KUALA LUMPUR (March 9): A Ma-
laysian Anti-Corruption Commission
(MACC) investigator today told the
High Court that RM7.5 million which
was misappropriated from a charity
started by former deputy prime minis-
ter Datuk Seri Dr Ahmad Zahid Hamidi
had originated from dubious sources
and not from Yayasan Albukhary.
During Ahmad Zahid’s money-laun-
dering trial, MACC investigator Mohd
Fahmee Mohamad Nor said the cash
given to money changer Omar Ali Ab-
dullah, which he then turned into 35
cheques made out to law firm Messrs
Lewis & Co, was a form of money laun-
dering.
Omar, who is also a witness in the
trial, testified last year that he was in-
structed by Ahmad Zahid in 2014 to
handle the deposits for his Yayasan Akal-
budi’s account.
Omar testified that Ahmad Zahid
had told him that the donors were
from a different charity named Yayay-
san Albukhary, which would contact
him to give him donations for Yayasan
Akalbudi. Omar then said he was in-
structed to convert the money into the
cheques.
He also said in his sworn testimony
last year that many men had come to
see him to give him the funds on sev-
eral occasions, however he could not
recognise any of them.
Testifying today, Fahmee said during
the course of his investigations, he did
not probe Tan Sri Syed Mokhthar Al-
bukhary or Yayasan Albukhary as Omar
had already said he could not identify
the men who claimed to be from the
charity.
KUALA LUMPUR (March 9): Umno
president Datuk Seri Dr Ahmad Zahid
Hamidi pleaded not guilty in the High
Court today to an amended charge of
money laundering.
“I understand this (amended) charge
is to make the sentence heftier for me.
Thank you... I plead not guilty,” the
former deputy prime minister said after
the new charge was read to him.
The amended charge involved one
of the 27 money laundering charges he
faces — along with 12 criminal breach
of trust charges and eight bribery charg-
es — involving millions of ringgit be-
longing to charity foundation Yayasan
Akalbudi.
The amendment today involved
the amount (from RM6.89 million to
RM7.51 million) and the number of
cheques (from 30 to 35) allegedly mis-
16 THEEDGE CEO MORNING BRIEF
H O M E
RM7.5m cash
“I saw this as money laundering in-
volving dubious sources,” he said.
allegedly donated
Fahmee also said that in their prelim-
inary checks on Albukhary, they could
to Zahid’s
not find any receipts or documentary
proof which suggested that they gave
charity was not
the RM7.5 million to Yayasan Akalbudi.
This has to do with Ahmad Zahid’s
from Yayasan
27th charge, which was amended by the
prosecution today to state that Ahmad
Albukhary,
Zahid was involved in money laundering
by allegedly ordering Omar to convert
MACC officer
RM6.885 million of illegal funds into
30 cheques, but the charge was amend-
tells court
ed this morning to reflect the RM7.5
million and 35 cheques, as per the tes-
timonies of Omar and Fahmee.
Deputy public prosecutor Harris Ong
BY TIMOTHY ACHARIAM then asked the officer why Syed Mokhtar
theedgemarkets.com was not investigated, to which the officer
said Omar did not know anyone from
the foundation and had told investiga-
MOHD IZWAN MOHD NAZAM/THE EDGE tors that he was acting on instructions
solely from Ahmad Zahid.
He also said that after Omar testified
in court last year, no one from Yayas-
an Albukhary came forward to help the
investigations.
Lead defence lawyer Hisyam The Poh
Taik objected to the suggestion from
the officer that the money came from
dubious sources, saying this was just
his own opinion.
Justice Collin Lawrence Sequerah
advised the witness to only testify on
his investigation process and not the
source of the funds.
Ahmad Zahid is facing 47 charges —
12 for criminal breach of trust, eight for
bribery and 27 for money laundering —
involving millions of ringgit belonging
Datuk Seri Dr Ahmad Zahid Hamidi to Yayasan Akalbudi in his trial.
Zahid pleads
illegal activities, by ordering Omar
Ali Abdullah to convert for him cash
not guilty to
amounting to RM7.51 million into 35
cheques that were later handed over
amended
to Messrs Lewis & Co for the purpose
of opening fixed deposit accounts in
money
Maybank.
Zahid, who is Bagan Datuk MP, is
laundering
alleged to have committed the offence
at Marhaba Enterprise Sdn Bhd, Jalan
charge
Bukit Bintang, on March 29, 2016 and
July 15, 2016.
The amended charge was read out to
Zahid before High Court Judge Collin
BY TIMOTHY ACHARIAM Lawrence Sequerah prior to the com-
theedgemarkets.com mencement of the trial today.
appropriated from Yayasan Akalbudi.
Zahid is alleged to have committed Read also: Zahid lodges police report
the offence by being directly involved in over viral message claiming more charg-
a transaction involving proceeds from es to be filed against him Click here
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
North Korean businessman with PR status
loses final appeal, faces extradition
for money laundering
BY HAFIZ YATIM
theedgemarkets.com
PUTRAJAYA (March 9): A 56-year old
North Korean businessman, who has a
permanent resident status here, has lost
his final appeal to be freed and could face
extradition to the US to face two charges
of money laundering.
The Federal Court’s three-member
bench led by Chief Justice Tun Tengku
Maimun Tuan Mat dismissed Mun Chol
Myong’s appeal against Home Minister
Datuk Seri Hamzah Zainudin, the Min-
istry of Home Affairs, the public prosecu-
tor and the director of the Sungai Buloh
Prison where he is presently being held in
custody since 2019.
Justice Tengku Maimun, in arriving at
her decision, said the apex court had pe-
rused the judgement made by the High
Court judicial commissioner and ruled
that there is not necessary to disturb the
findings.
“The decision of the High Court is up-
held and hence the appeal is dismissed,”
said Justice Tengku Maimun.
The other two judges were Federal
Court Justices Datuk Vernon Ong Lam
Kiat and Datuk Rhodzhariah Bujang.
Deputy Public Prosecutor (DPP) Da-
tuk Mohd Dusuki Mokhtar said after the
proceedings that with today’s decision,
Hamzah is given three months to decide
on deporting Mun.
Mun is indicted in the US for alleged
conspiracy to commit money laundering,
and money laundering by trading to send
items like liquor and cigarettes from Sin-
gapore to China and allegedly into North
Korea.
The US has imposed trade sanctions
against the communist state.
Mun was represented by a team of law-
yers led by counsel Gooi Soon Seng.
He bought a house in Malaysia un-
der the Malaysia My Second Home pro-
gramme and has been staying here for
more than 10 years with his wife and
daughter. He has been detained since
June 2019.
Gooi earlier asked that his client’s ha-
beas corpus application be allowed as the
respondents had not shown the predicate
offence of money laundering, which is a
requirement of the law here.
Furthermore, the lawyer said the US
17 THEEDGE CEO MORNING BRIEF
H O M E
government did not produce evidence
showing which bank his client had alleg-
edly defrauded, and that his client had
never been to the US.
“At best if this is the case, this is not
money-laundering but a cheating offence,
and we submit that if this is cheating, it
is a non-territorial offence. Besides this,
the respondents have not shown that the
business shipments were shipped to North
Korea as it is not denied the destination of
those items was in China,” he said.
Gooi further suggested that the extra-
dition application is political in nature due
to the US not having diplomatic relations
with North Korea, and that the Malay-
sian government should not allow such
a request.
Violations of money laundering
similar in Malaysia
Dusuki, who appeared with DPP Faizul
Aswad Masri, said the extradition request
fulfils the requirements under Section 6 of
the Extradition Act.
This is because Mun is facing indict-
ment for conspiracy to commit money
laundering and money laundering re-
spectively, which falls under Section 86A
and Section 4 of Malaysia’s Anti Mon-
ey-Laundering, anti Terrorism Financing
and Proceeds of Unlawful Activities Act
2001 (AMLATFPUAA).
Dusuki cited an affidavit by a US em-
bassy official in support of the extradition
request, and said Gooi’s arguments were
just background facts.
“On the issue of political character, we
say there is no political motive and it is
incumbent on the applicant to come up
with evidence to show this extradition is
political in nature.
He further said there is no violation of
Mun’s constitutional rights as this is not
a criminal trial or the calling of witnesses.
“It is best left to the home minister to
decide on the extradition,” Dusuki said.
Dusuki told reporters following today’s
decision that Mun would not be extradited
immediately to the US.
“Our home minister has three months
to issue an order to extradite him there to
face the indictment,” he added.
In Mun’s case, the Sessions Court on
July 19, 2019 allowed an application to
commit him to prison awaiting the minis-
ter’s order to surrender him after the Mag-
istrates’ Court refused to grant him bail a
month earlier.
Mun filed a writ of habeas corpus on
Dec 26, 2019, and this was dismissed by
High Court Judicial Commissioner Datuk
Ahmad Shahrir Mohd Salleh last Oct 8.
More court stories:
High Court dismisses application to
recuse judicial commissioner in Deleum’s
RM20m suit over alleged scheme to
defraud Petronas Carigali Click here
Amnesty International Malaysia granted
leave to stop deportation of 114 Myanmar
nationals Click here
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
US stimulus set to turbocharge world
economy as Europe lags — OECD
BY WILLIAM HOROBIN
Bloomberg
PARIS (March 9): A US recovery turbo-
charged by President Joe Biden’s stimulus
package will help power a faster-than-ex-
pected global economic upswing that risks
leaving Europe behind, according to Or-
ganisation for Economic Co-operation and
Development (OECD) forecasts.
The Paris-based organisation said it now
expects global output to rise above pre-pan-
demic levels by mid-2021 after major econ-
omies showed greater resilience at the end
of 2020, and as evidence of vaccine efficacy
grows and governments add extra demand
stimulus.
It raised its world growth forecast for
2021 to 5.6% from 4.2% and more than
doubled its prediction for the US to 6.5%.
OECD models indicated that Biden’s meas-
ures will raise output around 3% to 4% on
average in the first full year of the package
and add a full percentage point to world
economic output.
“This will not only boost the US econ-
omy, but it will fuel global growth through
increased demand in the US and from the
US to the rest of the world,” OECD chief
economist Laurence Boone said at a pres-
entation in Paris.
The sharp upward revisions show the
enormous uncertainty surrounding the re-
bound from the worst economic slump in
living memory. US borrowing costs and oil
prices have returned to pre-crisis levels in
recent weeks, sending ripples across glob-
al markets.
As a consequence, rising inflation expec-
18 THEEDGE CEO MORNING BRIEF
W O R L D
tations are putting pressure on central banks
as they seek to ensure a smooth recovery
with prolonged loose policies.
Adding to the difficulties, there is a grow-
ing divergence between sectors and geogra-
phies. As the US surges ahead with a 2021
growth rate closer to China’s 7.8% than the
euro area’s 3.9%, the OECD expects pos-
itive spillovers for some other economies,
particularly Canada and Mexico.
But Europe is on a more gradual path
with ongoing government restrictions and
total discretionary stimulus set to be “rel-
atively mild”, it said, slightly lowering the
outlook for France and Italy for 2021.
The OECD forecasts for this year and
next suggested that some European econ-
omies, including Italy, Spain, and the UK,
will not make up lost gross domestic prod-
uct (GDP) in 2022.
Separately, euro-area GDP data on
Tuesday showed the 19-member region
contracted 0.7% in the final three months
of 2020, 0.1 percentage point more than
initially reported.
Job risks
The OECD said there are “sizeable risks”
to the outlook as faster vaccine deployment
could further boost spending and confi-
dence, but virus mutations could also thwart
the battle against the pandemic, causing
larger job losses and more business failures.
That makes producing and deploy-
ing vaccines the “top policy priority”, the
OECD said. According to Boone, Europe
is suffering from poor public health man-
agement and more fiscal stimulus without
vaccinations would not be effective.
“Countries need to accelerate their vac-
cination programmes to reopen faster their
economies — if we are at war against a vi-
rus we need to get on a wartime footing,”
Boone said in an interview with Bloomberg
Television.
The uncertainty means fiscal policies will
need to be contingent on the state of econo-
mies and more targeted. But the OECD also
repeated a warning that governments must
err on the side of caution and not tighten
policies too fast, as happened in the wake
of the global financial crisis.
Central banks should keep extraordi-
narily accommodative policies in place,
even if headline inflation overshoots tar-
gets temporarily, the OECD said. For the
Federal Reserve, that means it should use
its new flexible average inflation-targeting
framework to avoid immediate increases in
rates, it said. It estimated the lasting impact
on inflation from the stimulus plan will be
“modest” beyond 2022.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 19 THEEDGE CEO MORNING BRIEF

W O R L D

Biggest yield-
(March 9): Even with the recent spike that While the relationship between bond rates
saw the 10-year rate top 1.6%,Treasury yields and the economy isn’t stable, such a large di-

GDP gap since

haven’t been this low relative to US economic vergence has been rare. Nominal GDP was
growth estimates since 1966. That suggests less than 2 percentage points above 10-year

1966 shows room

the climb in rates may still have room to run. yields on average in the decade through 2019.
Analysts are boosting their growth and in- “In the old days, bond yields should equal

for bond pain

flation forecasts, with Americans on the cusp
of getting stimulus checks under President Joe
Biden’s US$1.9 trillion package.The average
projection for nominal gross domestic prod-
uct hit a 32-year high of 7.6% in Bloomberg
surveys. Even after doubling to 1.6% since
November, 10-year bond rates can barely keep
up with the growth upgrade, leaving the gap
between the two likely to be the largest since
Lyndon Johnson was president.
The global bond market has been ham-
mered as prospects for stimulus and the Cov-
id-19 vaccine rollout have spurred optimism
toward an economic revival and higher in-
flation. Federal Reserve officials said rising
yields reflect a stronger growth outlook and
BY YE XIE
Bloomberg
played down the need for a policy response,
emboldening traders to push long-term bor-
rowing costs even higher.
“I am bearish on the bond market,” said
Julian Brigden, president of hedge-fund con-
sultant Macro Intelligence 2 Partners. “We
just have too much stimulus coming into the
system. It’s going to combine the growth with
a very rapid acceleration in inflation.”
to nominal GDP,” said Brigden. “Things are
very different now. But to what degree they
are different? Can you have 1% negative real
yield and 10% nominal GDP?”
Jeffrey Gundlach, founder of DoubleLine
Capital LP, has noted before that Treasury
yields should be comparable to the average of
nominal US GDP and German bund yields,
a proxy for the level of interest rates in the
international markets. By that measure, the
comparable bond yields would be above 3%,
should the consensus forecasts pan out.
While Gundlach cautioned to use his in-
dicator only as a reference point, rather than
a precise prediction, he used the metaphor
of a dog tied to a stagecoach to describe the
relationship between yields and GDP: A dog
cannot really stray far away from the stage-
coach. A spokesperson for Doubleline declined
to comment on Gundlach’s latest thought on
the market.
The economists’ consensus for nominal
GDP is based on the average forecast of 5.5%
for the real GDP and 2.1% for the PCE —
the Fed’s preferred inflation gauge. Gold-
man Sachs Group Inc is among the firms
that have boosted both their growth and yield
forecasts, raising its year-end projection for
10-year Treasury yields last week to 1.90%
from 1.50%.
Others, including Citigroup Inc and Soci-
ete Generale SA, see it going to 2%.

Singapore court
SINGAPORE (March 8): Singapore’s High the place of existing management.
Court on Monday approved an application to When a company is wound up, its busi-

approves winding
wind up collapsed oil trading firm Hin Leong ness will stop operations and its assets will be
Trading Pte Ltd, marking the end of what was handed over to an independent liquidator.

up of oil trader
once one of Asia’s top oil traders, three sources In a court document filed by the judicial
familiar with the matter said. managers last month and seen by Reuters, the

Hin Leong
Hin Leong, owned by Singaporean tycoon managers said that efforts to sell Hin Leong
Lim Oon Kuin and his children, racked up Trading and its affiliated companies as an in-

some $4 billion in debt and entered court
restructuring nearly a year ago.
The company had been seeking to restruc-
ture its debts after the oil price crash last year
when Lim admitted in a court document to
directing the firm not to disclose hundreds of
millions of dollars in losses over several years.
Court-appointed judicial managers Goh
Thien Phong and Chan Kheng Tek from ac-
counting firm PwC had submitted an appli-
cation to wind up Hin Leong on Feb. 5 and
have been appointed as joint liquidators of
the company, the sources said, speaking on
condition of anonymity as they were not au-
thorised to speak with media.
The Lim family, their lawyer, Singapore
High Court, PwC, Goh and Chan did not
— sources
BY JESSICA JAGANATHAN
& ROSLAN KHASAWNEH
Reuters
immediately respond to Reuters’ requests for
comment.
Hin Leong, which was set up in 1973 to
trade primarily in petroleum products, was
placed under judicial management in August,
last year.
Under judicial management, a court ap-
points an independent manager to run the
affairs of a financially distressed company in
tegrated group were not successful.
They said that potential investors had in-
cluded state-owned enterprises and other
companies from China as well as several re-
gional and global traders in the oil and gas
industry.
They added that as of Oct. 31, last year,
Hin Leong had assets with an estimated val-
ue of $273.28 million and total liabilities of
about $4.59 billion.
With all trading and operations at the com-
pany having stopped and no viable proposal
on hand for any injection of funds by an inves-
tor, the company is “not in a position to trade
out of its insolvency or restructure its debts”,
they said, adding that as such, the company
should be wound up.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
(March 9): Singapore could be the biggest
comeback story for Asian equities this year.
After becoming the region’s worst per-
former in 2020 following a 12% slump, the
Straits Times Index has surged 9.3% to
trounce all other major Asian benchmarks
so far this year. That’s come in the wake of
a tech rout that saw the Nasdaq 100 enter a
correction amid rising US Treasury yields.
Singapore’s market revival echoes the
global trend of value investing as inves-
tors bet on an economic rebound. The is-
land nation’s market is dominated by old
economy shares, with more than 80% of
the index made up of cyclical stocks sans
technology and communication services —
among the highest contributions in Asia.
“Singapore stocks look attractive because
of their relatively better valuations and high
dividend yields,” said Stuart Rumble, a multi
asset investment director at Fidelity Inter-
national. The large share of property firms
and banks also make the market “highly
geared” to economic re-opening, he added.
The Straits Times Index closed up 1.2%
onTuesday to the highest in more than a year.
The gauge is trading at 14.7 times 12-month
forward earnings, behind most of its regional
peers and the MSCI Asia Pacific Index’s 16.8
multiple, according to Bloomberg-compiled
data. The Singapore gauge’s dividend yield
is estimated at 3.8% for the next 12 months,
higher than the regional benchmark’s 2.3%.
The export-oriented economy suffered its
MUMBAI (March 9): Investors with-
drew 172.2 billion rupees (US$2.5 bil-
lion) from Indian stock and company
debt mutual funds in February as con-
cerns mount about the sustainability of
returns.
Corporate bonds saw the biggest out-
flow in about two years after the gov-
ernment last month announced a big-
ger-than-expected borrowing plan in its
budget, triggering a spike in yields. Eq-
uity indexes, which benefit from a stim-
20 THEEDGE CEO MORNING BRIEF
W O R L D
Worst-performing
to rebound to between 4% and 6% in 2021.
The three local banks — DBS Group
Asia stock index
Holdings Ltd, Oversea-Chinese Banking
Corp and United Overseas Bank Ltd —
turns winner on
that make up nearly half of the index’s
weight, contributed the most to the bench-
value love
mark index’s rise amid higher yields, climb-
ing more than 10% each this year. Investors
are awaiting the easing of a regulatory cap
on bank dividends introduced last year.
BY ISHIKA MOOKERJEE Stocks linked to Jardine Matheson
Bloomberg Holdings Ltd, Singapore’s biggest con-
glomerate by market value, are also among
biggest contraction since independence last the top performers on the index in 2021
year due to the global pandemic. Now, new following double-digit price gains on Mon-
daily Covid-19 infections locally are hovering day, after the company said it will untangle
near zero and the government expects growth its decades-old structure.
Investors dump
ulus, surged to a fresh record, prompting
local investors to book profits.
US$2.5 billion
“The period of unusual returns is get-
ting over,” said Vidya Bala, co-founder at
India stock, bond
Chennai-based research firm Primein-
vestor.in. “Also, many investors could
funds after budget
be waiting it out till the interest rate
environment settles.”
Key numbers:
BY RAHUL SATIJA & NUPUR ACHARYA
Bloomberg • Investors withdrew 67.5 billion ru-
pees from corporate bond portfolios,
biggest outflow in at least 23 months.
• Net withdrawals from stock funds
were 104.7 billion rupees, eighth con-
secutive monthly outflow and biggest
since November.
• Overnight and liquid funds received
167.8 billion rupees; money market
funds got 95.8 billion rupees, indicat-
ing a preference for perceived safety.
• Data from Association of Mutual
Funds in India, published on Tuesday.
Yields on top-rated rupee corporate
notes maturing in three years jumped
by 74 basis points to 5.61% last month,
the biggest rise since 2013.
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1 21 THEEDGE CEO MORNING BRIEF

W O R L D

NEWS IN BRIEF

China launches Covid-19 vaccination

certificates for cross-border travel Taiwan February exports up again, outlook good on chip demand
BEIJING (March 9): China has launched a TAIPEI (March 9): Taiwan’s exports rose in February for the eighth month in a row,
digital COVID-19 vaccination certificate slightly slower than expected but benefiting from continued strong demand for
for its citizens planning cross-border chips to power technology for the work-from-home COVID-19 pandemic boom.
travels, joining other countries issuing Exports rose 9.7% from a year earlier to $27.79 billion in February, the Ministry
similar documents as they seek ways of Finance said on Tuesday, affected by the week-long Lunar New Year holiday
to reopen their economies As vaccines that occurred last month. Analysts in a Reuters poll had forecast a rise of 10.5%
are globally being rolled out, a few for February, compared with a 36.8% jump in January. The ministry attributed
countries including Bahrain have already the growth to “brisk” demand for chips and panels, with laptops logging an annual
introduced certificates identifying expansion of 68.7% last month, as millions of people are forced to work and study
vaccinated people, and the European remotely on smartphones, tablets and other technology. 5G and auto chip demand
Union agreed to develop vaccine also helped drive February exports, it added. Car companies have been scrambling
passports under pressure from tourism- for chips, many of which are made in Taiwan. — Reuters
dependent southern countries. The
certificate issued by China will have
details about the holder’s COVID-19 Chinese EV trio eye HK listings
vaccination information and coronavirus this year to raise combined US$5b
test results, the Department of Consular — sources
Affairs under China’s foreign ministry HONG KONG/BEIJING (March 9): US-listed
said on its website. — Reuters Chinese electric vehicle (EV) makers Li Auto
Inc, Nio Inc and Xpeng Inc plan to list in Hong
Oil slips to US$68 as rally fizzles out Kong as soon as this year, to tap an investor
before US supply report base closer to home, said three people with
LONDON (March 9): Oil fell to around US$68 direct knowledge of the matter. The trio
a barrel on Tuesday in a choppy session, as Apple faces French complaint over each aim to sell at least 5% of their enlarged
easing concern of a supply disruption in Saudi iPhone advertising tool share capital in the Asian financial hub, the
Arabia and US dollar strength countered the PARIS (March 9): Apple Inc.’s advertising people said. Based on their New York market
prospects for tighter supply due to OPEC+ tool used to monetize some of its own apps capitalisation on Monday, proceeds could
output curbs. Crude hit its highest since and services is the target of a new complaint total around US$5 billion. The EV makers
the start of the pandemic on Monday, after in France. France Digitale, a lobby group have been working with advisors on the
Yemen’s Houthi forces fired drones and representing startups and venture capital sales which could begin as early as mid-year,
missiles at Saudi oil sites on Sunday. But Saudi firms, filed the complaint on Tuesday, saying one of the people said. The three are looking
Arabia said it thwarted the strike and prices that Apple’s own advertising system doesn’t to take advantage of growing demand from
slipped as supply fears eased. Brent crude was seek a user’s consent for receiving targeted prospective investors in Asia, said another
down 18 cents or 0.3% at US$68.06 by 1450 ads. The complaint focuses on an Apple of the people, who declined to be identified
GMT, pulling back after trading as high as feature called Personalized Advertising that due to confidentiality constraints. — Reuters
US$69.33. It reached US$71.38 on Monday, shows ads in the App Store, Apple News,
the highest since Jan 8, 2020. US West Texas and the Stocks app, based on a user’s data. Vodafone seeks to raise up to €2.8
Intermediate (WTI) fell 56 cents to US$64.49, The complaint comes as Apple is preparing billion from Vantage Towers IPO
after hitting its highest since October 2018 to release an iPhone and iPad software BERLIN (March 9): Vodafone Group
on Monday. The latest round of US inventory update that limits how much data third-party said on Tuesday it would seek to raise
reports are expected to show crude stockpiles advertising systems, such as those from up to €2.8 billion (US$3.32 billion) in
dropped. The first report, from the American Facebook Inc., can gather about users. Unlike proceeds by floating infrastructure unit
Petroleum Institute, is due out at 4:30 p.m. ET that feature, Apple’s personalized advertising Vantage Towers in Europe’s largest initial
(2130 GMT). — Reuters system is enabled by default. — Bloomberg public offering (IPO) of 2021. The UK-
based operator set the price range for
the flotation of Vantage Towers on the
Singapore’s Temasek allots US$500m for impact investing in LeapFrog tie-up Frankfurt Stock Exchange at €22.50 to
SINGAPORE (March 9): Singapore’s Temasek Holdings is committing US$500 €29 per share, implying a total market
million to a partnership with private equity firm LeapFrog Investments, in what both capitalisation of up to €14.7 billion. That
companies said was the largest ever commitment to an impact investor. The tie-up would top the valuations of a European
will take the form of a multi-fund investment by Temasek to anchor Asia and Africa- IPO crop that has so far this year featured
focused LeapFrog’s future funds, and the Singapore Polish e-commerce firm InPost, German
state investor will also acquire a minority stake in used-car trading platform AUTO1, and
LeapFrog, they said in a joint statement on Tuesday. British boot brand Dr Martens. The
Impact or socially responsible investing has gone deal would also be the largest European
mainstream in the last few years, moving beyond telecoms IPO since that of Belgacom in
being a niche for development banks. It has attracted 2014, and Germany’s largest listing since
the likes of some of the world’s largest buyout funds that of Knorr Bremse in 2018, both of
including TPG, KKR and Blackstone. — Reuters which raised US$4.4 billion, according to
Refinitiv data. — Reuters
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
South Korea roiled by property scandal
amid soaring house prices
SEOUL (Mar 9): Accusations that officials
at South Korea’s state housing corporation
tried to use insider information to cash in
on runaway property prices has thrown new
fuel on an issue that is draining support
from the ruling party ahead of key elections.
Police said on Tuesday they were serving
search and seizure warrants at the head-
quarters of Korea Land and Housing Corp
in Jinju, south of Seoul, to gather evidence
of illegal property speculation by employees.
The police raids came one day after
President Moon Jae-in called for an in-
vestigation into allegations that at least
13 employees at Korea Land and Hous-
ing had acted on insider information and
bought undeveloped land near Seoul be-
fore the government unveiled a new town
development project in the area.
Median apartment prices in Seoul —
where about a fifth of South Koreans live
— have soared nearly 60% since May
2017 when Moon came into office, de-
spite repeated government interventions
to try to cool down the market.
Housing affordability has become a
political headache for Moon, whose his-
torically high levels of support have been
eroded by scandals, high unemployment
and slow economic growth.
The property speculation furore
comes a month before a by-election
that will decide several key offices, in-
cluding the mayors of the country’s
22 THEEDGE CEO MORNING BRIEF
W O R L D
BY SANGMI CHA; CYNTHIA KIM, HEEKYONG YANG
Reuters
two largest cities, Seoul and Busan.
Polls show Moon’s Democratic Party is
likely to lose control of Seoul’s municipal
government for the first time in a decade,
and will struggle to retain power in Busan
after the incumbent mayor resigned amid
a sexual harassment scandal.
With a year to go until the next national
presidential election, polls also suggest the
housing scandal is boosting the conserva-
tive opposition, which has been in disarray
since the impeachment of former President
Park Geun-hye in 2017.
“The soaring house prices, already caus-
ing pain to the public, combined with the
scandals in the Moon administration will
result in public resentment,” said Kwon
Huck-ju, a professor of public policy at
Seoul National University.
The insider-trading allegations surfaced
last week after civic groups accused over a
dozen current and former employees of Ko-
rea Land and Housing of speculating in land
in two satellite cities of Gwangmyeong and
Siheung in Gyeonggi province, less than 20
kilometres (12 miles) southwest of Seoul.
One of the groups, the human rights
lawyers’ collective Minbyun, said that
from April 2018 to June 2020 land cor-
poration employees and their spouses
had purchased 10 plots for a total of
about 10 billion won ($8.8 million).
The state-run corporation has sub-
sequently confirmed the purchase of 12
plots by 13 employees over three years,
according to a document provided to a
ruling party lawmaker.
The aim of the new development pro-
ject is to decentralise Seoul by turning
farmland into a self-sufficient town pow-
ered by an industrial complex and full in-
frastructure, saidYeo Kyoung-hui, a prop-
erty market analyst at Real Estate 114 Inc.
“Since these new towns have a full re-
newable capacity of their own with residen-
tial and work areas and the infrastructure
that connects to Seoul, those who couldn’t
afford housing in Seoul would move away
and drive up the price,”Yeo said.
Since its launch in 2009, the state hous-
ing corporation has developed residential
areas, new towns and industrial complexes,
including the inter-Korean Kaesong indus-
trial park in North Korea, with the aim to
improve quality of life and develop the na-
tional economy by creating stable housing.
Kwon Dae-jung, professor of real es-
tate studies at Myongji University, said the
government needed to get to the bottom
of the scandal or risk further damage to
its reputation.
“Currently the land ministry has told
the Land and Housing Corp employees
to voluntarily come forward, but this isn’t
enough,” he said.
REUTERS
 W E D N E S D AY M A R C H 1 0 , 2 0 2 1
M A R K E T S
CPO RM 4,030.00 18.00 OIL US$ 69.05 0.81 RM/USD 4.1188 RM/SGD 3.0606 RM/AUD 3.1708 RM/GBP 5.7197 RM/EUR 4.8979
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
JADI IMAGING HOLDINGS BHD 361.8 0.010 0.135 28.57 139.9
SEALINK INTERNATIONAL BHD 348.1 -0.045 0.240 26.32 120.0
AIRASIA X BHD 251.2 0.000 0.095 26.67 394.1
AIRASIA GROUP BHD 190.9 0.060 1.020 15.25 3786.1
MANAGEPAY SYSTEMS BHD 175.8 0.030 0.220 46.67 158.6
MSM MALAYSIA HOLDINGS BHD 135.5 0.370 1.860 226.32 1307.5
DAGANG NEXCHANGE BHD 125.1 0.010 0.730 224.44 1575.0
MMC CORP BHD 124.3 0.120 1.180 31.11 3593.2
KOMARKCORP BHD 121.8 0.005 0.335 -37.19 161.2
KANGER INTERNATIONAL BHD 100.8 0.010 0.105 -27.59 264.0
VELESTO ENERGY BHD 100.5 -0.005 0.185 32.14 1519.9
INARI AMERTRON BHD 86.7 -0.060 3.060 10.87 10160.2
KTG BHD 83.7 0.005 0.230 -19.30 82.2
PRG HOLDINGS BHD 75.1 0.000 0.255 27.50 109.6
MALAYSIAN RESOURCES CORP BHD 71.9 0.025 0.505 6.32 2228.1
DATAPREP HOLDINGS BHD 69.3 0.610 2.650 1372.22 1614.5
PASUKHAS GROUP BHD 65.2 -0.005 0.040 -42.86 62.2
AT SYSTEMATIZATION BHD 64.0 0.005 0.115 -37.84 486.3
TA WIN HOLDINGS BHD 62.6 -0.020 0.355 77.50 235.5
INDUSTRONICS BHD 62.1 0.040 0.570 216.67 95.0
Data as compiled on Mar 9, 2021 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
SAUDEE GROUP BHD 0.540 45.95 27081.0 11.34 86.9
DATAPREP HOLDINGS BHD 2.650 29.90 69321.4 1372.22 1614.5
ENCORP BHD 0.260 26.83 2072.3 10.64 82.2
PEGASUS HEIGHTS BHD 0.025 25.00 14562.0 0.00 264.2
LAMBO GROUP BHD 0.025 25.00 3717.1 -16.67 122.3
MSM MALAYSIA HOLDINGS BHD 1.860 24.83 135506.5 226.32 1307.5
MITRAJAYA HOLDINGS BHD 0.335 21.82 39258.2 21.82 275.7
CHEETAH HOLDINGS BHD 1.580 19.70 3748.4 209.80 182.2
PARKSON HOLDINGS BHD 0.215 19.44 31042.7 7.50 229.4
GE-SHEN CORP BHD 1.610 16.67 1002.9 78.89 175.4
MANAGEPAY SYSTEMS BHD 0.220 15.79 175759.3 46.67 158.6
K-STAR SPORTS LTD 0.115 15.00 11451.2 -54.90 56.8
MACPIE BHD 0.195 14.71 17129.4 -17.89 179.2
DGB ASIA BHD 0.085 13.33 60265.5 -62.22 97.5
KOBAY TECHNOLOGY BHD 3.960 13.14 656.9 65.69 404.3
XIAN LENG HOLDINGS BHD 1.650 13.01 8507.1 189.47 157.5
PROTASCO BHD 0.295 11.32 11803.4 -7.81 142.1
MMC CORP BHD 1.180 11.32 124347.1 31.11 3593.2
MUDAJAYA GROUP BHD 0.305 10.91 14857.3 -6.15 197.9
PARLO BHD 0.360 10.77 54481.8 -30.10 144.2
Data as compiled on Mar 9, 2021 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
CARLSBERG BREWERY MALAYSIA BHD 24.740 0.900 539.8 6.45 7564.2
DATAPREP HOLDINGS BHD 2.650 0.610 69321.4 1372.22 1614.5
KOBAY TECHNOLOGY BHD 3.960 0.460 656.9 65.69 404.3
KESM INDUSTRIES BHD 13.340 0.460 358.5 -1.77 573.8
MSM MALAYSIA HOLDINGS BHD 1.860 0.370 135506.5 226.32 1307.5
MALAYSIA AIRPORTS HOLDINGS BHD 6.330 0.310 4788.7 6.93 10502.7
D&O GREEN TECHNOLOGIES BHD 3.770 0.300 55926.9 65.35 4397.2
TENAGA NASIONAL BHD 10.700 0.300 5966.2 2.69 61039.8
CHEETAH HOLDINGS BHD 1.580 0.260 3748.4 209.80 182.2
PENTAMASTER CORP BHD 5.500 0.250 8481.3 8.91 3917.7
BATU KAWAN BHD 17.820 0.240 4.5 -0.45 7055.3
GE-SHEN CORP BHD 1.610 0.230 1002.9 78.89 175.4
NESTLE MALAYSIA BHD 135.700 0.200 85.8 -2.30 31821.7
GENTING PLANTATIONS BHD 9.400 0.200 100.7 -4.57 8433.7
HONG LEONG BANK BHD 19.100 0.200 2530.1 4.95 41403.4
FRASER & NEAVE HOLDINGS BHD 30.300 0.200 65.0 -5.55 11113.4
XIAN LENG HOLDINGS BHD 1.650 0.190 8507.1 189.47 157.5
PIE INDUSTRIAL BHD 3.400 0.170 2614.0 40.50 1305.7
SAUDEE GROUP BHD 0.540 0.170 27081.0 11.34 86.9
TOP GLOVE CORP BHD 5.190 0.150 43899.4 -15.20 41525.2
Data as compiled on Mar 9, 2021 Source: Bloomberg
23 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DOW JONES 31,802.44 306.14 0.97 INDONESIA 6,199.65 -48.82 -0.78
S&P 500 3,821.35 -20.59 -0.54 JAPAN 29,027.94 284.69 0.99
NASDAQ 100 12,299.08 -369.43 -2.92 KOREA 2,976.12 -19.99 -0.67
FTSE 100 6,753.49 34.36 0.51 PHILIPPINES 6,766.83 9.91 0.15
AUSTRALIA 6,771.16 31.59 0.47 SINGAPORE 3,108.53 37.37 1.22
CHINA 3,359.29 -62.12 -1.82 TAIWAN 15,853.09 32.98 0.21
HONG KONG 28,773.23 232.40 0.81 THAILAND 1,550.59 6.83 0.44
INDIA 51,025.48 584.41 1.16 VIETNAM 1,161.97 -6.30 -0.54
Data as compiled on Mar 9, 2021 Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
ARTRONIQ BHD 0.730 -20.65 18646.7 44.55 210.9
COMPUGATES HOLDINGS BHD 0.020 -20.00 1801.9 0.00 61.4
TIMBERWELL BHD 0.450 -15.89 15.0 0.00 40.1
SEALINK INTERNATIONAL BHD 0.240 -15.79 348137.8 26.32 120.0
CME GROUP BHD 0.055 -15.38 18719.1 -8.33 48.4
COMPLETE LOGISTIC SERVICES BHD 1.420 -13.41 11264.2 102.86 182.7
G3 GLOBAL BHD 0.825 -12.70 10004.7 -58.96 440.6
SCOMI GROUP BHD 0.035 -12.50 2737.2 16.67 33.6
LEBTECH BHD 0.940 -11.32 1.6 -6.93 128.3
NEXGRAM HOLDINGS BHD 0.040 -11.11 20060.4 -11.11 109.6
PASUKHAS GROUP BHD 0.040 -11.11 65231.8 -42.86 62.2
KEY ALLIANCE GROUP BHD 0.040 -11.11 9036.0 -20.00 94.2
MTOUCHE TECHNOLOGY BHD 0.040 -11.11 4964.9 -46.67 53.0
DFCITY GROUP BHD 0.425 -10.53 21.0 -15.00 37.4
MEDIA PRIMA BHD 0.625 -10.07 11455.8 119.30 693.2
GRAND HOOVER BHD 0.955 -9.91 1160.0 26.49 38.2
CLASSIC SCENIC BHD 1.380 -9.80 3165.6 52.49 166.3
PIMPINAN EHSAN BHD 1.590 -9.66 1393.9 127.14 109.9
SOLUTION GROUP BHD 1.150 -9.45 24844.1 -3.36 444.5
TANCO HOLDINGS BHD 0.050 -9.09 17.5 0.00 65.0
Data as compiled on Mar 9, 2021 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
GREATECH TECHNOLOGY BHD 5.260 -0.340 16594.3 15.60 6585.5
RAPID SYNERGY BHD 6.940 -0.300 339.0 5.15 741.9
COMPLETE LOGISTIC SERVICES BHD 1.420 -0.220 11264.2 102.86 182.7
ARTRONIQ BHD 0.730 -0.190 18646.7 44.55 210.9
LPI CAPITAL BHD 13.600 -0.180 147.2 -0.87 5418.0
PIMPINAN EHSAN BHD 1.590 -0.170 1393.9 127.14 109.9
LATITUDE TREE HOLDINGS BHD 4.280 -0.170 409.6 13.39 415.8
PHARMANIAGA BHD 3.370 -0.170 1741.8 -32.60 881.9
ANN JOO RESOURCES BHD 1.900 -0.160 8633.1 21.02 1025.2
CLASSIC SCENIC BHD 1.380 -0.150 3165.6 52.49 166.3
HENGYUAN REFINING CO BHD 5.910 -0.150 1548.4 -1.34 1773.0
PETRONAS CHEMICALS GROUP BHD 8.200 -0.150 5083.7 10.36 65600.0
SHANGRI-LA HOTELS MALAYSIA BHD 3.900 -0.150 52.0 -2.99 1716.0
RIVERVIEW RUBBER ESTATES BHD 2.950 -0.130 5.3 -3.33 191.3
G3 GLOBAL BHD 0.825 -0.120 10004.7 -58.96 440.6
SOLUTION GROUP BHD 1.150 -0.120 24844.1 -3.36 444.5
LEBTECH BHD 0.940 -0.120 1.6 -6.93 128.3
PLB ENGINEERING BHD 1.140 -0.110 34.0 3.64 121.5
SUNGEI BAGAN RUBBER CO (M) BHD 3.030 -0.110 43.0 -2.26 201.0
THONG GUAN INDUSTRIES BHD 1.950 -0.110 3683.4 -22.92 738.6
Data as compiled on Mar 9, 2021 Source: Bloomberg