IMF: TOTAL SPENDING ON FUEL SUBSIDIES TOPPED

US$7 TRILLION IN 2022 p15

F R I DAY, AU G U S T 2 5 , 2 0 2 3 t h e e d g e m a l ay s i a . c o m
ISSUE 626/2023

CEOMorningBrief
HOME: Cabinet approves progressive wage policy, details to be tabled in Budget 2024 — Rafizi p2
TNB to invest additional RM35 bil over 2025-2030 to beef up grid for energy transition p2
WORLD: Global trade growth poised for 3Q rebound — WTO p14
BRICS invites Saudi, Iran, UAE and others to join developing world bloc p17
Lira rallies as Türkiye stuns with biggest rate hike in years p19

Eco World International declares bumper dividend;

three shareholders stand to receive RM550 mil
Report on Page 4.
WWW.FREEPIK.COM

Sime Darby makes

takeover bid for UMW
Holdings, including PNB’s
stake, at RM5 per share
Report on Page 3.
 f r i d ay A U G U S T 2 5 , 2 0 2 3 2 TheEdge CEO morning brief

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h o m e

Cabinet approves
KUALA LUMPUR (Aug 24): The pro- Leadership Programme here on Thursday
gressive wage system policy has been ap- (Aug 24).

progressive wage
proved at the Cabinet level and the details He said the government puts more fo-
will be tabled during the upcoming Budget cus on the development of states during

policy, details
2024 in October. the budget in an effort to bridge the eco-
Economy Minister Rafizi Ramli said the nomic development gap between states in

to be tabled in
system is expected to be implemented in Malaysia.
April or May next year, hence the reason “We have three categories actually...

Budget 2024 —
why the policy has to be included in the one that has been given priority (Sarawak,
budget tabling. Sabah, Kelantan, Terengganu, Kedah

Rafizi
“The policy has been approved in and Perlis); the second is for states with
principal as well as the approach and growth that have their own economic de-
then we have to go through a series of velopment without much injection from
processes including bringing down to all the federal government (Penang, Selan-
stakeholders and the level of coverage Bernama gor and the Federal Territory of Kua-
for specific group. la Lumpur); third is for states in the
“Thereafter, we will translate it into the middle (Perak, Johor, Negeri Sembilan
financial commitment that the government and Melaka).
has to do and we will go through in the “This is also a change that we are re-
budget process,” he told reporters after the fining because we also need to be fair
signing ceremony of the Executive Digital to certain states such as Perak,
Negeri Sembilan and Mela-
ka,” he said.
Economy Minister Rafizi Ramli said the Budget 2024 has been
progressive wage system policy is expected
to be implemented in April or May next year, scheduled for tabling
hence the reason why the policy has to be in Parliament on
included in the budget tabling in October. the edge Oct 13.

TNB to invest
BALI (Aug 24): Tenaga Nasional Bhd Elaborating on the rationale behind
(TNB) plans to deploy an additional TNB’s move to ramp up investment in

additional
RM35 billion between 2025 to 2030 to- the nation’s power infrastructure, Baha-
wards upgrading Malaysia’s power grid, to rin cited the grid-related issues developed

RM35 bil over

ensure the infrastructure does not become markets faced when they embarked on
an obstacle in the nation’s energy transition their respective RE journeys, a problem

2025-2030 to beef
(ET) endeavours. the utility group hopes to avoid.
During a session at the ASEAN Energy “Taking cues from more mature mar-

up grid for energy

Business Forum (AEBF) 2023 on Thursday kets, we see that the grid is potentially be-
(Aug 24),TNB president and chief executive coming a bottleneck that is delaying the

transition
officer Datuk Baharin Din said this is on top
of the national utility giant’s RM54 billion
non-ET investment allocation for the grid
over the same five-year period.
This means that TNB plans to invest a
total of RM90 billion into Malaysia’s grid
in the coming five-year period.This is near-
ly double the RM46 billion the group allo-
cated for 2018-2024, Baharin highlighted,
which comprises RM40 billion for non-ET
and RM6 billion for ET.
scale-up of renewables.
“This can also be observed across the
UK, and even the US and others as each
country’s connection queues for wind and
by Izzul Ikram solar projects [to be plugged into their
theedgemalaysia.com grids] ranges between a staggering 50GW
(gigawatts) and 200GW,” Baharin said.
“Therefore, for Malaysia, we want to
make sure that we build this grid infrastruc-
ture early so that it will not become a bottle-
neck in the adoption of more RE,” he added.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
Sime Darby makes takeover bid
for UMW Holdings, including PNB’s
stake, at RM5 per share
KUALA LUMPUR (Aug 24): Sime Darby
Bhd is buying a 61.18% equity interest in
UMW Holdings Bhd from its parent com-
pany Permodalan Nasional Bhd (PNB) for
RM3.57 billion or RM5 per share.
UMW shares were last traded at
RM4.62. The offer price of RM5 repre-
sents 8.2% premium.
The biggest automotive deal in the
country will see Sime Darby launch a
mandatory general offer (MGO) to buy
the remaining shareholding of 38.82% and
take UMW private. The MGO is expected
to cost roughly RM2.27 billion, the group
said in a filing to Bursa Malaysia.
The announcement confirms a report in
The Edge Malaysia weekly’s Aug 14-20, 2023,
edition, which said PNB intends to consolidate
its auto business by selling its stake in UMW,
according to sources privy to the matter.
The deal, which values UMW at
RM5.84 billion, will be funded by inter-
nal borrowings.
The total consideration also translates
into an implied price to earnings ratio
(PER) for UMW of 14.1 times and price
to book ratio of 1.3 times.
This compared to Sime Darby’s PER
of 13 times as at Aug 23, while its peers
like DRB-Hicom Bhd has a PER of 15.2
times, Bermaz Auto Bhd 8.5 times, and
MBM Resources Bhd 5.1 times.
Subsequently, Sime Darby will double
its net gearing ratio to 0.40 times from
0.20 times as at its financial year ended
June 30, 2022 (FY2022).
Sime Darby also said it does not intend
to maintain the listing status of UMW on
the Main Market of Bursa Securities.
According to the filing, the deal will
require shareholders approval through an
extraordinary general meeting.
CIMB Investment Bank Bhd is the prin-
cipal adviser, while AmInvestment Bank
Bhd has been appointed as the independ-
ent adviser for the deal.
The acquisition is expected to be com-
pleted by the fourth quarter of this year,
and the MGO by the first quarter of 2024.
Under the listing requirements of Bursa
Malaysia, it is mandatory for new share-
holders who acquire 33% or more to
launch an MGO.
UMW’s notable shareholders are the Em-
ployees Provident Fund (EPF) at 7.62%, and
Retirement Fund Inc (KWAP) at 9.13%.
3 TheEdge CEO morning brief
h o m e
by Priyatharisiny Vasu & Chester Tay
theedgemalaysia.com
Sime Darby to streamline UMW’s
business via divestment of non-core
assets
Upon the completion of the deal, Sime
Darby intends to undertake a comprehen-
sive review of various businesses within
UMW Group to determine the strategic
plans for the integration of UMW Group
into Sime Darby Group.
“The key objectives of the integration plan
are to ensure continuity of UMW Group’s
businesses, formulate action plans to realise
anticipated synergies, harmonisation of sys-
tems and policies as well as aligning organi-
sational cultures,” the group said in the filing.
As part of the comprehensive review,
Sime Darby also intends to identify stra-
tegic options to streamline UMW Group’s
businesses through assets that would be
required to be disposed of.
“In respect of the foregoing, Sime Dar-
by wishes to highlight that the aforemen-
tioned divestments shall be explored at the
appropriate time and subject to acceptable
terms,” the group said.
According to The Edge Malaysia’s report,
the reason for the corporate exercise is the valu-
ation of Perusahaan Otomobil Kedua Sdn Bhd
(Perodua), which is not reflected anywhere
because of its current shareholding structure.
“The objective is to list Perodua eventual-
ly. Its net tangible assets are about RM2 bil-
lion.The market capitalisation of both UMW
and MBM Resources Bhd (a public-listed
company that owns a stake in Perodua) does
not reflect Perodua’s value,” a source said.
Perodua is a joint venture between Malay-
sian and Japanese entities, with no one party
holding a controlling stake.Through wholly
owned UMW Corp Sdn Bhd, UMW owns
38% of Perodua, while Daihatsu Motor Co
and its Malaysian outfit own a 25% stake.
Propels Sime Darby as the largest
automotive player in Asia Pacific
The automotive segment is UMW Group’s
largest business, with its subsidiary the sole
distributor of Toyota and Lexus car models
in Malaysia while its associate, Perodua, in
which UMW Group is the largest share-
holder, is among Malaysia’s largest auto-
motive manufacturer.
The exercise is expected to scale up
Sime Darby Group’s operations in Malay-
sia, positioning Sime Darby as a leading
automotive player with more than 50%
market share in Malaysia.
The group will be able to leverage this
stronger foothold in Malaysia to tap into
increased market opportunities and cus-
tomer base and to unlock potential for rev-
enue growth and operational efficiencies.
The deal is also expected to accord Sime
Darby full presence across the automo-
tive spectrum by adding high-volume mass
market brands (Toyota and Perodua) to
complement its existing premium to lux-
ury portfolio (BMW, Rolls-Royce, Jaguar,
Land Rover and Porsche).
“With increased contribution from
Malaysia, the revenue mix of Sime Darby
Group’s automotive business will be fur-
ther diversified geographically with more
balanced revenue contributions from Ma-
laysia, along with China and Australia, which
are currently the key markets of Sime Darby
Group,” the group said in the filing.
The deal may also yield additional bene-
fits to Sime Darby by adding manufacturing
and distribution capabilities to complement
its existing assembly and retail businesses.
Read also:
Sime Darby to pare down UMW’s RM2.7
bil debt by selling healthcare JV, land
Taking over UMW will help ‘plug the gap’
in Sime Darby auto business, says CEO
Divestment of Ramsay Sime Darby
expected to be completed by 1Q2024,
says Sime Darby CEO
 f r i d ay A U G U S T 2 5 , 2 0 2 3
KUALA LUMPUR (Aug 24): Eco World
International Bhd is giving out a RM792
million dividend or 33 sen per share next
month, with three of its largest sharehold-
ers entitled to nearly 70% or RM550.76
million.
Its largest shareholder Datuk Leong Kok
Wah, through his direct holdings, EcoWorld
Capital (International) Sdn Bhd and Sinar-
mas Harta Sdn Bhd, owns some 728.73 mil-
lion shares or a 30.3% stake in the real estate
developer, entitling him to some RM240.48
million of the total dividend.
Tan Sri Quek Leng Chan, through GLL
EWI (HK) Ltd, a unit of Singapore-listed
Guocoland Ltd, owns a 27% stake or 648
million shares, giving rise to an entitlement
of RM213.84 million from the total divi-
dend payout of RM792 million.
Meanwhile, Eco World International
founder Tan Sri Liew Kee Sin and his
family’s 12.2% stake or 292.24 million
shares would give rise to an entitlement
of RM96.44 million.
After deducting these three parties’
share of dividend, there will be RM241.24
million left for the remaining minori-
ty shareholders, who collectively own a
30.5% stake.
KUALA LUMPUR (Aug 24): Contract
manufacturer of automated industrial
equipment Genetec Technology Bhd has
secured approval from the Securities Com-
mission Malaysia to transfer its listing to
the Main Market, provided the group en-
hances its corporate governance by raising
the number of independent directors on
its board to over 50% and women direc-
tors to 30%.
The group, whose clientele include
suppliers to electric vehicle behemoth
Tesla, announced to Bursa Malaysia that
the approval is subject to Genetec imple-
menting “appropriate actions to remedy
the non-adoption with Practices 5.2 and
5.9 of the Malaysian Code on Corporate
Governance (MCCG)”.
“Genetec to proceed with the Pro-
posed Transfer upon providing confir-
mation to the SC on the adoption with
4 TheEdge CEO morning brief
h o m e
Eco World
RM792 million achieved is attributable
to the steady progress made to-date on
International
the sale of completed stocks that have gen-
erated substantial cash for the company,”
declares bumper
said president and chief executive officer
Datuk Teow Leong Seng.
dividend; three
He added that the group aims to work
toward distributing more excess cash back
shareholders
to shareholders, after setting aside the nec-
essary amount for the group’s working
stand to receive
capital requirements.
Eco World International narrowed its
RM550 mil
net loss to RM4.56 million or 0.19 sen per
share for the second quarter ended April
30, 2023 (2QFY2023), compared with
RM67.35 million or a 2.81 sen loss per
by Chester Tay share a year earlier (2QFY2022).
theedgemalaysia.com The group attributed the improvement
to higher foreign exchange (forex) gain, as
The dividend, announced on Thursday the British pound strengthened against the
(Aug 24), comes following the completion Malaysian ringgit, higher interest income
of Eco World International’s capital reduc- following capital contribution repayments
tion exercise on Aug 3. from the UK joint ventures and lower fi-
The group had earlier said it was tar- nance costs due to the group’s progressive
geting to make a first tranche dividend repayment of loans.
distribution of at least RM300 million to Shares of EcoWorld International, which
shareholders, following completion of its climbed 64% year-to-date, closed half sen or
capital reduction exercise. 0.8% higher at 64 sen on Thursday, giving
“The significantly higher amount of it a market capitalisation of RM1.54 billion.
Practices 5.2 and 5.9 of the MCCG,”
Genetec gets nod the filing read.
Practice 5.2 of MCCG requires at least
for Main Market half of a company’s board to comprise in-
dependent directors.
transfer, provided “For large companies, the board com-
prises a majority independent directors,”
it appoints more the code read, and large companies are
defined as companies on FBM Bursa Ma-
independent, laysia Top 100 Index or with market capi-
talisation of RM2 billion and above.
women directors Practice 5.9, meanwhile, requires
boardrooms to comprise at least 30%
women directors.
by Chester Tay Genetec’s current boardroom consists
theedgemalaysia.com of seven members, three of them are in-
dependent, with only one female on the
board.
Shares of Genetec gained seven sen or
3.1% to RM2.36 on Thursday, giving it a
market capitalisation of RM1.78 billion.
 f r i d ay a u g u s t 2 5 , 2 0 2 3 5 TheEdge CEO morning brief

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 f r i d ay A U G U S T 2 5 , 2 0 2 3
KLK proposes to buy 33% and one share in
BPlant for RM1.15 bil, takes company private
KUALA LUMPUR (Aug 24): Kuala Lum-
pur Kepong Bhd (KLK) has proposed to buy
739.2 million shares or 33% and one share
in Boustead Plantations Bhd (BPlant) for a
total of RM1.15 billion or RM1.55 per share
and plans to take the company private via a
mandatory general offer (MGO), confirming
The Edge’s report.
KLK has entered into the tripartite
strategic collaboration agreement (SCA)
with Boustead Holdings Bhd (BHB) —
which holds a 57.42% stake in BPlant —
and Lembaga Tabung Angkatan Tentera
(LTAT) — which holds a 10.59% stake
in BPlant — on Thursday (Aug 24), the
group said in a Bursa Malaysia filing.
At RM1.55, the offer is at a 19% premi-
um to its net asset per share of RM1.30 as
at March 31, 2023 and 13% premium to
its closing price of RM1.37 on Wednesday.
The group said the objective of the SCA
is to work together with BHB and LTAT
towards the long term objective of enhanc-
ing the operational efficiencies and crude
palm oil yields of the plantations of BPlant
over the long term.
Barring any unforeseen circumstances,
KLK assumed the proposed acquisition
and proposed offer to be completed in the
fourth quarter of 2023, which it believed
will enhance the earnings and earnings per
share of the KLK Group for the financial
year ending Sept 30, 2024 (FY2024).
RHB Investment Bank Bhd has been
appointed as the principal adviser to KLK
for the proposed acquisition and proposed
offer.
On the details, KLK said its sharehold-
ings in BPlant will increase from nil to
33% and one share upon completion of
the proposed acquisition, while BHB and
LTAT will collectively retain their remain-
ing equity interest of approximately 35%
in BPlant.
BHB — involved in the property and in-
dustrial, plantation, heavy industries, phar-
maceutical, trading and finance businesses
— is a 98%-owned subsidiary of LTAT.
LTAT provides superannuation and
other benefits for contributors made of
retiring and retired personnel of the regular
armed forces of Malaysia and designated
members of the volunteer forces.
KLK said both BHB and LTAT shall
be joint offerors with KLK, and the joint
offerors will be obliged to extend a MGO
to acquire all the remaining BPlant shares
not already owned by them for a cash offer
price of RM1.55 per BPlant share. The of-
6 TheEdge CEO morning brief
h o m e
by Hailey Chung multiple of public listed companies pre-
theedgemalaysia.com dominantly involved in oil palm planta-
tion business.
“The purchase consideration and offer
price will be funded via a combination of
bank borrowings and internally generat-
ed funds, the proportion of which will be
determined at a later date after taking into
consideration, among others, the gearing
and operating cash flow requirements of
KLK and its subsidiaries,” said KLK.
It said that the deposit of RM130 mil-
lion has been paid to BHB prior to the
execution of the agreement and approx-
imately RM99.2 million shall be paid to
BHB within three business days.
KLK added that the balance of approx-
imately RM916.6 million shall be settled
by way of a direct business transaction on
the completion date.
The group noted that it had a working
relationship with BHB since 1986 through
KLK to buy 33% and one share in BPlant for Applied Agricultural Resources Sdn Bhd,
RM1.15 bil, take company private a joint venture company involved in ag-
ronomic advisory and research services as
GLOBAL FUNDS ABANDON CHINA BLUE CHIPS
IN US$11 BIL SELLOFF p15 well as the commercial production of oil
palm seeds and planting materials.
T H U R S DAY, AU G U S T 2 4 , 2 0 2 3 t h e e d g e m a l ay s i a . c o m
ISSUE 625/2023
CEOMorningBrief It said that Thursday’s SCA is expect-
HOME: AGC to represent Dr M, Nor Yakcop in Halim Saad’s suit p2
Hibiscus annual revenue exceeds RM2 bil for the first time; plans dividend, share consolidation p4
Arul Kanda, Irwan Serigar fail in bid to strike out 1MDB’s US$6.59 bil lawsuit p11
ed to strengthen the existing cooperation
between KLK and BHB and further pro-
WORLD: US economy near stalling point as consumer demand weakens, survey says p16
India set to ban sugar exports for first time in seven years p17
THE EDGE FILE PHOTO
vide the KLK Group with the long-term
growth strategy for its plantation business.
FLASHBACK: Aug 24, 2023 BHB, LTAT gets first right of refusal on
Balau and Bukit Mertajam estates
KLK to buy major stake In a separate press statement, KLK said
in Boustead Plantations BHB and LTAT, under the SCA, are grant-
from LTAT, and to ed the first right of refusal to deal with
take firm private two plantation estates, namely Balau and
Report on Page 3.
Bukit Mertajam (Mayfield Division) es-
tates, with a total acreage of approximately
fer price values BPlant at RM3.47 billion. 1,800 acres, for the purpose of develop-
The offer is triggered as a direct out- ment of the land hence providing added
come of the acquisition by KLK as a result value to BHB.
of the increase in the shareholding of KLK LTAT chief executive officer (CEO)
in BPlant, the group explained. Datuk Ahmad Nazim Abd Rahman said:
KLK said the purchase consideration “This timely strategic collaboration marks
and offer price were arrived at on a “will- the beginning of the reset strategy for BHB,
ing-buyer willing-seller” basis after taking which will result in significant value en-
into consideration the latest audited con- hancement to the group.
solidated net assets attributable to share- “We firmly believe that this strategic
holders of BPlant as at Dec 31, 2022 of collaboration with its synergies will unlock
approximately RM2.97 billion or RM1.33 greater value for all stakeholders within the
per BPlant share. business value chain.We are confident that
It also took account the historical clos- this will put both BHB and LTAT on a
ing prices of BPlant shares for one year firm footing towards a sustainable future.”
up to Aug 23 of between 60.5 sen and
RM1.37 and the price-to-book multiple
and enterprise value over planted area Read the full story
 f r i d ay A U G U S T 2 5 , 2 0 2 3 7 TheEdge CEO morning brief

h o m e

Dayang Enterprise 2QFY2023 net profit

marks highest quarterly earnings since 2019
by Hailey Chung
theedgemalaysia.com

KUALA LUMPUR (Aug 24): Dayang En-

terprise Holdings Bhd marked a return
to profitability after notching a net profit
of RM64.69 million in the second quar-
ter ended June 30, 2023 (2QFY2023), its
highest quarterly profit since its 4QFY2019
result of RM78.23 million.
In a year-on-year (y-o-y) comparison,
the integrated oil and gas (O&G) service
provider’s latest quarterly net profit repre-
sents a 54% jump from RM42.02 million,
which it credited to higher utilisation rates
for vessels with better margin.
Dayang Enterprise said net profit rose
despite a net realised or unrealised foreign
exchange (forex) loss of RM18.7 million
in the current quarter versus a net realised
or unrealised forex loss of RM4.7 million
a year ago.
Correspondingly, earnings per share Dayang Enterprise’s net profit and rev- dition, the contract extensions were giv-
increased to 5.59 sen from the previous enue for the cumulative six-month period en with a moderate revision in unit rates
3.63 sen, it reported in a Bursa Malaysia ended June 30, 2023 (1HFY2023) was still to cover a substantial surge in operating
filing on Thursday (Aug 24). below 2HFY2022, which it attributed to cost, especially raw materials and logistics.
Revenue also rose 16% y-o-y to unfavourable oil prices in early 2023 as “At present, we anticipate similar call
RM305.73 million in 2QFY2023 from well as the forex loss. for work orders from our clients to better
RM263.41 million, it said. Net profit for the period-to-date stood maintain their production capabilities with
“Vessel utilisation during the current at RM48.75 million, a 13% decrease an outstanding estimated call-out contracts
quarter has improved from 66% to 72%, from RM55.78 million, while revenue of about RM1.19 billion.
as compared to 2QFY2022,” Dayang En- fell slightly by 1% to RM418.15 million “We will however remain prudent in
terprise said. from RM423.55 million. managing our business affairs while contin-
Besides the higher capacity utilisation of In terms of prospects, Dayang Enter- uing to deliver outstanding performance,”
vessels with improved daily charter rates, prise said the positive performance of it said.
the group said it bagged more work orders 2QFY2023 may be sustained in the re- On Thursday, Dayang Enterprise’s
or contracts from oil majors under topside maining quarters of 2023. share price closed six sen or 3.97% high-
maintenance contracts. “The earnings visibility remained fair er to RM1.57 — the highest since its clos-
It did not declare any dividend for given that quite a few ongoing contracts ing price of RM2.08 on March 6, 2020
2QFY2023. have been extended until FY2024. In ad- — valuing the group at RM1.82 billion.

Dayang Enterprise Holdings Bhd Dayang Enterprise’s quarterly financial performance

Vol (mil) RM Net profit/loss (RM mil) Revenue (RM mil)
500 500
200 3 338.34
DEHB’s closing price 285.02 305.73
263.41
300 223.84 222.3 300
RM2.44 on Thursday hit its 170.95 158.23 159.69 160.14
highest since 112.42
150 230.21 84.06
RM2.08 March 6, 2020 172.06 200.15
2 100 100
RM1.57
100
-100 -100
1
50 -300 -300
78.23

9.33

-0.99

36.08

13.17

-27.54

-21.89

18.98

-288.49

13.76

42.02

52.9

15.56

-15.95

64.69

0 0
Jan 2, 2020 Aug 24, 2023 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY19 FY20 FY21 FY22 FY23
Source: Bloomberg Source: Bursa Malaysia
 f r i d ay A U G U S T 2 5 , 2 0 2 3
KUALA LUMPUR (Aug 24): Genting
Malaysia Bhd (GenM) returned to the
black in the second quarter ended June
30, 2023 (2QFY2023). The casino oper-
ator posted a net profit of RM47.12 mil-
lion or 0.83 sen per share compared to a
RM10.85 million net loss or 0.19 sen loss
per share a year ago.
Since January last year, GenM has been
in the red for four out of six quarters. The
group incurred a net loss of RM27.4 mil-
lion in the preceding quarter 1QFY2023
on revenue of RM2.28 billion.
The earnings in 2QFY2023 were main-
ly boosted by RM182.2 million net gain on
disposal of property, plant and equipment.
Interest income in the quarter under
review soared to RM29.2 million from
RM3.3 million, according to its filing with
Bursa Malaysia.
Quarterly revenue grew by 13.74% to
RM2.47 billion from RM2.18 billion a
year ago. GenM attributed higher reve-
nue to the increase in volume of business
by Resorts World Genting’s (RWG) gam-
ing and non-gaming segments as well as
higher contributions from Resorts World
New York City (RWNYC) and the im-
proved operating performance of Resorts
World Bimini.
GenM’s operating profit came in higher
at RM327.5 million against RM277.1 mil-
KUALA LUMPUR (Aug 24): DRB-
HICOM Bhd registered an 80.11% plunge
in net profit to RM33.7 million million in
the second quarter ended June 30, 2023
(2QFY2023), compared with RM169.56
million a year ago, due to the absence of
asset disposal gains recorded in the corre-
sponding period.
The higher results in the correspond-
ing quarter were mainly due to the group
recognising the income arising from the
disposal of then subsidiary Lotus Ad-
vance Technologies Sdn Bhd amounting
to RM119.51 million under other income.
Quarterly revenue increased 12% to
RM3.98 billion against RM3.55 billion a
year prior, driven by the automotive sector
— mainly with contributions from PRO-
TON, automotive distribution companies,
and manufacturing and engineering com-
panies, DRB-HICOM said in a filing with
Bursa Malaysia on Thursday (Aug 24).
Earnings per share (EPS) contracted
to 1.74 sen compared with EPS of 8.77
sen in 2QFY2022.
The group recorded a net profit of
RM141.62 million for the first six months
of FY2023, a drop from RM143.82 mil-
lion in H1FY2022.
This is on the back of RM8.09 billion in
revenue for 1HFY2023 which represents
8 TheEdge CEO morning brief
h o m e
GenM returns
to the black in
2QFY23 after two
straight quarters
of losses; declares
six sen dividend
by Syafiqah Salim
theedgemalaysia.com
lion a year earlier. However, the group’s fi-
nance costs of RM158.79 million trimmed
more than half of its operating profit.
GenM declared an interim single-tier
dividend of six sen per share, to be paid
on Oct 2.
For the first half ended June 30, 2023
(1HFY2023), GenM recorded RM19.74
million net profit versus RM137.4 million
net loss a year earlier, as revenue grew 22%
to RM4.76 billion from RM3.9 billion.
On its outlook, GenM said it will lever-
age its integrated resort offerings to cap-
italise on the increasing inbound tourist
arrivals to Malaysia to drive incremental
DRB-HICOM
earnings shrink
in 2QFY2023
on absence of
divestment gain
by Priyatharisiny Vasu
theedgemalaysia.com
a 22.1% increase against RM6.62 billion
recorded in the corresponding period from
sustained performance, especially in the
group’s automotive and banking sectors,
as well as improvements in other sectors.
PROTON recorded a 28.6% increase
in sales volume or 77,321 units, with the
Saga, X50 and Persona contributing more
than 80% of PROTON’s total sales volume.
PROTON’s first new energy vehicle
(NEV), Proton X90, continued to garner
strong local demand to become the new
D-segment SUV leader. Other marques
within the DRB-HICOM group such as
the all-new HONDA WR-V, is also tak-
ing the lead in in the small SUV market
foreign visitation to RWG.
“The group [also] will continue to in-
vest in the infrastructure at Genting High-
lands to elevate the customer experience as
well as to enhance the safety and wellbeing
of guests and the community at RWG,”
it said.
GenM said it remains cautious on the
volatility implicit in the operating environ-
ment, particularly in London. It will proac-
tively manage costs and drive operational
efficiencies to further improve the overall
performance of the group’s operations.
“In the US, the group remains focused
on strengthening its leading position in
the New York State gaming market. The
group will continue to intensify market-
ing efforts and promotional activities to
grow the group’s US database whilst lev-
eraging synergies between RWNYC and
Empire’s assets to drive visitation and
improve the overall returns of the group’s
US operations.
Meanwhile, the group will continue to
closely monitor developments surround-
ing the New York Gaming Facility Board’s
Request for Application to solicit propos-
als for up to three commercial casinos in
New York State,” it added.
GenM’s share price gained two sen to
close at RM2.62 on Thursday, valuing it
at RM15.56 billion.
with over 2,500 bookings within a month
of its launch.
“Overall, demand for the group’s offer-
ings remains healthy. The group will con-
tinue to execute plans to enhance product
ranges and service levels, including entry
into the Malaysian EV market,” DRB-
HICOM said.
Meanwhile, the banking sector recorded
a 37.3% increase in revenue in 1HFY2023
to RM806.77 against RM587.69 million
a year ago, primarily due to higher financ-
ing income led by the growth in financing
volume.
This was attributed to sustainable
growth and expanding customer base as
well as the rise in the overnight policy rate
to 3% in the current period against 2% in
the corresponding period.
The group said its postal sector remains
on track in its transformation roadmap,
leveraging on technology to enhance cus-
tomer experience and continue to adopt
prudent cost control discipline.
The group expects a satisfactory finan-
cial performance for the financial year end-
ing Dec 31, 2023 compared with the pre-
vious year.
DRB-HICOM shares were up nine sen
or 6.08% to RM1.57, valuing the group
at RM3.04 billion.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
MAHB posts
third consecutive
quarterly net profit
amid continued
recovery in travel
demand
by Justin Lim
theedgemalaysia.com
KUALA LUMPUR (Aug 24): Malaysia
Airports Holdings Bhd (MAHB), which
recorded a net profit of RM102.53 million
in 2QFY2023, marking its third consecu-
tive quarterly earnings, is hopeful that pas-
senger movements will recover to pre-pan-
demic levels by the end of the year.
For 2QFY2023, it posted a net profit
of RM102.53 million against a net loss of
RM58.15 million a year ago, as revenue
rose 78.61% year-on-year to RM1.23 bil-
lion, from RM689.76 million previously,
thanks to increased passenger traffic.
During the quarter under review, the
group’s cost increased due to higher user fees
payable under the Operating Agreement and
higher revenue share payable under Istanbul
Sabiha Gokcen International Airport’s con-
cession, whilst other operational cost moder-
ately increased to meet operational require-
ments with the increase in passenger traffic.
Notably, it saw share of profits from as-
sociates at RM2.69 million versus losses
of RM40,000 a year ago, while share from
joint ventures was at a RM4.08 million loss
versus a RM3.5 million profit a year ago.
The improved quarterly results also
led to MAHB delivering a net profit of
RM160.72 million for the cumulative six
months ended June 30, 2023 (6MFY2023)
versus a net loss of RM162.91 million in
the previous Jan-June period.
Its 6MFY2023 revenue also jumped
79.79% to RM2.27 billion, from
9 TheEdge CEO morning brief
h o m e
RM1.26 billion previously.
As of the end of 1H2023, the group’s
passenger traffic recovered by 82.4% against
pre-pandemic levels, underpinned by the re-
sumption of airline services and connectivity,
reopening of Chinese borders and an in-
crease in the quota for Haj pilgrims this year.
MAHB, which operates 39 airports in
the country, saw 38.9 million passenger
movements in its Malaysia operation for
the first half of 2023 (1H2023), an increase
of 91.9% from 1H2022, and a 76.1% re-
covery against pre-pandemic levels.
Meanwhile, its Turkish operations saw
an increase of 24.4% y-o-y in passenger
movements to 17.2 million in 1H2023,
surpassing the 17 million passenger move-
ments recorded in the same period in 2019.
Its core cost per passenger improved to
RM16.50 per passenger compared with
RM20.70 per passenger in 1H2022.
As a result, its earnings before inter-
est, taxes, depreciation and amortisation
(EBITDA) rose to RM1 billion in 1H2023,
from RM471.7 million a year ago.
In a statement, MAHB’s managing di-
rector Datuk Iskandar Mizal Mahmood
the various initiatives that the group has
embarked on in the past couple of years
have begun to come to fruition.
“We are seeing better cost efficiency
across our operations, improved contribu-
tion of commercial revenue, and gaining
momentum in earnings growth in both
Malaysia and Türkiye,” Iskandar said.
Meanwhile, he said that several opera-
tional improvements and digital solutions to
achieve enhanced service delivery have been
rolled out, including the self-service check-in
and bag drop facility, EZBagz, and an online
feedback management platform, STARdesk.
“All these and more are being done to not
only improve our service offerings for our
passengers and stakeholders but will also be
the key drivers to propel our airports back
to the top-tier global rankings,” he added.
MAHB’s share price closed up three sen
or 0.43% at RM6.93, giving the group a
market capitalisation of RM11.56 billion.
Over the past year, the stock has gained
14%.
NCB Holdings’ major
shareholder MMC
Corp proposes
selective capital
reduction, cash
repayment at
RM4.80 per share
by Priyatharisiny Vasu
theedgemalaysia.com
KUALA LUMPUR (Aug 24): NCB
Holdings Bhd’s controlling shareholder
MMC Port Holdings Sdn Bhd, a wholly
owned unit of MMC Corporation Bhd
(MMC Corp), has proposed to under-
take a selective capital reduction and re-
payment exercise (SCR) involving cash
distribution of RM19 million to entitled
shareholders at RM4.80 for each share.
In a statement on Thursday (Aug 24),
NCB said the SCR will provide greater
flexibility to MMC Port in the imple-
mentation of any business plan of NCB,
moving forward.
Upon completion of the SCR, NCB
will be a wholly owned subsidiary of
MMC Port.
It said the offer price of RM4.80 took
into consideration its independent advis-
er’s recommendation, and the mandatory
takeover offer price of RM4.40 announced
in November 2015. It also considered
MMC Port’s previous purchase of NCB
shares between January 2018 till Feb-
ruary 2023 at RM4.40 a piece.
NCB’s current issued share capital is
RM470.56 million, comprising 470.25 mil-
lion shares. MMC Port holds 99.16% stake
in the port company.
Upon successful implementation of
SCR, NCB’s issued share capital will
be reduced by RM19 million, by way of
cancellation of 3.96 million shares held
by entitled shareholders.
“The proposed SCR will also reduce
administrative efforts and costs pertain-
ing to NCB’s obligations to its sharehold-
ers, which can be utilised more efficiently
in the business [of] NCB.
“It will also provide an opportunity
for the entitled shareholders to realise
their investment, rather than continue
to hold unlisted NCB shares,” the com-
pany said.
Until completion of the SCR, NCB will
not be involved in any fundraising exercis-
es, will not acquire or dispose of any assets,
and will not pass resolutions in general
meetings without prior written consent.
 f r i d ay A U G U S T 2 5 , 2 0 2 3 10 TheEdge CEO morning brief

h o m e

news In brief

Telcos told to increase internet

KLK 3Q earnings fall on weaker CPO, PK prices, absence of net gain speed for National Day celebration
KUALA LUMPUR (Aug 24): Kuala Lumpur Kepong Bhd’s (KLK) net profit plummeted PUTRAJAYA (Aug 24): Telecommunication
84.9% to RM84.10 million in the third quarter ended June 30, 2023 (3QFY2023) from service providers (telcos) have been
RM558.27 million a year ago, due to weaker average selling prices of crude palm oil (CPO), instructed to increase the speed of internet
palm kernel and higher CPO production cost. The weaker quarterly performance was also services on Aug 31 for the 2023 National
attributed to a net loss of RM8.7 million, from a net gain of RM96.9 million in 3QFY2022, Day celebration in Putrajaya. National Day
from fair value changes on outstanding derivative contracts. Quarterly revenue fell and Malaysia Day 2023 celebrations working
26.5% to RM5.11 billion from RM6.96 billion, dragging earnings per share to 7.80 sen committee secretary Mazlan Abd Mutalib said
from 51.80 sen a year prior, the palm oil giant said in its filing on Thursday (Aug 24). KLK’s good internet access was a crucial element
manufacturing segment reported a loss of RM73.7 million due to a drop in revenue to in hosting the important national event to
RM4.32 billion and a loss incurred by the oleochemical division, which was impacted by ensure a smooth workflow for those on duty.
eroded demand and profit margin. However, its property segment’s profit increased to “We do not want their duties to be hampered
RM19.3 million, aided by higher revenue at RM61.6 million, while its investment segment’s due to internet problems. The internet is a
loss narrowed to RM36.8 million from RM54.4 million a year ago, mainly attributable to crucial element,” he said after surveying the
lower interest expenses arising from a drop in borrowings. — by Priyatharisiny Vasu 2023 National Day preparations at Dataran
Putrajaya here on Thursday (Aug 24). He was
told that several telcos had begun installing
telecommunication transmitters at the
designated locations in Dataran Putrajaya and
testing the access speed of their respective
internet networks. Mazlan, who is also the
communications and digital ministry senior
undersecretary (management), said the
Malaysian Communications and Multimedia
Commission (MCMC) would monitor the
situation to ensure good internet service on
MSM net loss narrows in 2Q amid MISC back in the black with 2Q that day. He was also satisfied with the level
higher capacity utilisation and land net profit of RM453 mil of logistical and technical preparations, which
disposal gain KUALA LUMPUR (Aug 24): MISC Bhd had now reached 90%. — Bernama
KUALA LUMPUR (Aug 24): MSM registered RM452.9 million net profit for
Holdings Bhd saw its net loss narrowing the second quarter ended June 30, 2023 Anwar vows to keep prices
by 38.89% to RM20.82 million in the (2QFY2023) versus RM19.1 million net loss a of goods in check
second quarter ended June 30, 2023 year ago on the back of a smaller impairment IPOH (Aug 24): The government will
(2QFY2023), from RM34.07 million of non-current asset in 2QFY2023. This continue to find ways to ensure that the
previously. The better quarterly earnings translated into an earnings per share of prices of goods in this country are at a level
came in on the back of higher capacity 10.1 sen against loss per share of 0.4 sen that does not burden the people, Prime
utilisation, lower freight cost, as well previously. The energy shipping arm’s revenue Minister Datuk Seri Anwar Ibrahim said.
as gains from the disposal of its Pulau was RM3.55 billion, a 10.5% higher than He said these include increasing food
Indah land of RM8.33 million. It was also RM3.21 billion in 2QFY2022. The increase production as well as the introduction
boosted by the gain from translation of in revenue was contributed by improved of additional measures. Anwar said the
US dollar balances of RM9.67 million and freight rates in the petroleum and product government does not take the issue
gain from US dollar forward contracts of shipping segment as well as higher revenue lightly despite receiving criticism over
RM7.09 million, said the country’s largest from ongoing heavy engineering projects. It the matter from the public, whom he said
refined sugar producer in a statement declared a second tax-exempt dividend of 10 may not fully understand the problems
on Thursday (Aug 24). Hence, loss per sen per share amounting to RM446.4 million. behind the rising prices of goods. “The best
share shrank to 2.96 sen in 2QFY2023, The dividend, with an ex-date of Sept 11, example of that (government measures) is
compared to 4.85 sen previously. Revenue will be paid on Sept 21. MISC’s bourse filing the work of Datuk Seri Salahuddin Ayub
for the quarter rose 19.5% to RM746.23 on Thursday (Aug 24) showed impairment (former domestic trade and cost of living
million — its highest since the fourth of non-current assets decreased to RM17.4 minister). He was always thinking about
quarter ended Dec 31, 2016 (4QFY2016) million from RM309.8 million. Operating how to negotiate with companies, shops and
when it posted a revenue of RM838.31 profit increased by 15.3% to RM531.3 million producers on how to reduce the price [of
million — from RM624.20 million a year from RM460.9 million due to higher margin goods]. “But the whole world is facing this
before. The improved quarterly results on freight rates in the petroleum and product problem and we are still trying to resolve
also contributed to MSM’s smaller shipping segment coupled with higher profit it as best we can. Now, Armizan (acting
net loss of RM56.69 million for the in the offshore business segment. For the domestic trade and cost of living minister) is
cumulative six months ended June 30, cumulative six months ended June 30, 2023 also helping so that this effort can continue.
2023 (6MFY2023), from RM61.75 million (6MFY2023), MISC’s net profit more than We will continue to take additional
in 6MFY2022. Its 6MFY2023 revenue doubled to RM1.07 billion from RM357.3 measures,” he said. Anwar said this when
increased by 9.38% to RM1.33 billion, million in 6MFY2022. Six-month cumulative officiating the Mega@Tambun Rahmah
from RM1.22 billion in the previous Jan- revenue advanced 9.02% to RM6.63 billion Sales at the Mydin Manjoi parking lot here
June period. — by Justin Lim from RM6.08 billion. — by Syafiqah Salim on Thursday (Aug 24). — Bernama
 f r i d ay A U G U S T 2 5 , 2 0 2 3
KUALA LUMPUR (Aug 24): There is a
need to increase local workforce in the con-
struction industry to increase job oppor-
tunities for locals and reduce dependency
on foreign workers, said Deputy Human
Resource Minister Mustapha Sakmud.
In his address at the opening ceremony
of the Master Builders Association Malay-
sia (MBAM) Human Resources Confer-
ence 2023 with the theme “Investment in
Human Capital” at Kuala Lumpur Golf &
Country Club, Kuala Lumpur, on Thurs-
day (Aug 24) morning, Mustapha said as
Malaysia is a country that prioritises eco-
nomic progress, it is necessary to empha-
sise the provision of more local workers in
the construction industry.
“This step not only provides employ-
ment opportunities for our local people,
but also helps reduce dependency on for-
eign workers. In this context, initiatives to
improve the skills of local workers become
critical to meet the needs of the industry
while providing opportunities for local peo-
ple, including the youth, through Techni-
cal and Vocational Education and Training
(TVET) to grow in this field,” he said.
MBAM President Oliver Wee in his
opening speech said many Malaysian
youths are still hesitant in pursuing a ca-
reer in the construction industry till this
day. “Construction jobs, which are often
known as 3D — dirty, dangerous and dif-
ficult — have forced the youth to opt for
more intellectually demanding careers or
KUALA LUMPUR (Aug 24): Singapore’s
largest self-storage operator, StorHub
Group, is planning to open up to eight
storage facilities in Malaysia over the next
two years, targeting key gateway cities na-
tionwide.
As part of its expansion exercise, the
group has announced its acquisition of a
major stake in Malaysian self-storage com-
pany, Flexi Storage, leading to the rebrand-
ing of all Flexi Storage facilities to StorHub
Self Storage Malaysia.
StorHub group chief investment officer
David Chin said the group is looking at sev-
eral areas, including Klang Valley, Penang
and southern Johor for its expansion.
“Malaysia has been identified as a key
growth market, as the StorHub Group
sees rapid urbanisation changing the way
consumers and businesses perceive living
space or real estate.
“The country has tripled its urbanisa-
tion rate over five decades from 28.4%
in 1970 to 75.1% in 2020, with Selan-
gor having the largest urban population
at 6.7 million,” he said at the launch of
the fourth StorHub Self Storage facility
here, on Thursday (Aug 24).
11 TheEdge CEO morning brief
h o m e
Increase local
educational institutions and construction
industry players.
workforce in
During the press conference, Mustapha
noted that the government is targeting to
construction
produce 35% of the skilled workforce in the
economy from the current 28% through
industry, says
efforts such as TVET programmes. “We
hope more youths will register with TVET
deputy HR
institutes near them. The employability for
TVET graduates is very high, around 95%
minister
will find employment.”
MBAM Secretary General Datuk As-
taman Abdul Aziz added that a Govern-
ment-Industry TVET Coordination body
by Chai Yee Hoong has also been set up as a company limited
theedgemalaysia.com by guarantee to narrow the mismatched
skills gap between the demand and supply
those that are seen as more white-collar. of the country’s workforce.
“Construction works which are still sub- Meanwhile, the one-day conference will
jected to a deeply ingrained stereotype ac- feature topics on mental health in con-
companied by issues such as forced labour struction, issues and challenges on work-
have made it a non-viable career option. force recalibration programme, claiming
However, we acknowledge the Ministry and utilisation of contribution by the con-
of Human Resources’ efforts in combat- struction industry, direction of TVET in
ing the issues of forced labour through construction, TVET in Malaysia and in-
the ratification of the Protocol of 2014 to terview skills for HR.
the Forced Labour Convention and the “Through this conference we’ll be able to
adoption of the National Action Plan on enhance the awareness of construction in-
Forced Labour (2021-2025).” dustry players on the latest government pol-
Wee added that TVET programmes are icies as well as on the current issues related
designed to bridge the gap between aca- to the management of human resources in
demic learning and practical application, the construction industry, namely manag-
and the success of TVET in producing job- ing the foreign workers and attracting new
ready professionals in the construction sec- working generation to the construction in-
tor hinges on the collaboration between dustry through TVET,” Wee said.
Singapore’s
Since Flexi Storage began operating in
2015, the company has provided secure
StorHub Group
and flexible storage for personal and busi-
ness use to more than 1,600 customers,
to open eight self-
said Desmond How, StorHub Self Storage
Malaysia’s chief executive officer (CEO)
storage facilities
and joint founder of Flexi Storage.
“In Malaysia, we have observed close to
in Malaysia over
90% take-up of our facilities, which drives
our growth trajectory.
next two years
“Pandemic hobbies such as cooking
and cycling also brought a wave of new
customers who then decluttered to make
way for a new interest,” he said.
Bernama StorHub Self Storage Malaysia chief op-
erating officer Alex Lee said the StorHub fa-
starhub.com.sg cility along the Old Klang Road is officially
the company’s first facility in Malaysia to be
located within a residential building.
With the latest facility, he said StorHub
Malaysia now offers over 1,000 self-storage
units, spanning over 85,000 square feet
(sq ft) of gross floor area (GFA), to cater
to the self-storage needs of neighbouring
communities.
Read the full story
 f r i d ay A U G U S T 2 5 , 2 0 2 3
KUALA LUMPUR (Aug 24): The pros-
ecution in Datin Seri Rosmah Mansor’s
second criminal trial where she is facing
17 charges of money laundering and tax
evasion told the High Court on Thurs-
day (Aug 24) that she has no independent
source of income, yet had large sums of
money deposited into her current account
in Affin Bank Bhd.
Deputy public prosecutor (DPP) Ah-
mad Akram Gharib said Rosmah was not
gainfully employed, but the prosecution
noticed that the monies were deposited
through Roslan Sohari, who was at the
time the residential house manager of Seri
Perdana complex in Putrajaya.
Akram said the first 12 charges (con-
cerning money laundering) pertain to de-
posits to this account and they were never
disclosed as revenue, and were deposited
and utilised by her.
The DPP said Rosmah had made false
statements concerning the monies paid
into her account when she was questioned
by Malaysian Anti-Corruption Commis-
sion (MACC) officers.
“The prosecution will produce as part
of its case, statements recorded from the
accused under Section 32(3) of the An-
ti-Money Laundering, Anti-Terrorism Fi-
nancing and Proceeds of Unlawful Activ-
ities Act 2001 (AMLA).
“It is the prosecution’s case that when
the totality of the evidence is considered
as a whole, the conduct of the accused
in all the circumstances of the case fair-
ly supports the irresistible inference that
the deposits in question were proceeds of
unlawful activity contrary to Section 4(1)
(a) of AMLA,” he said
The following is the full excerpt of the
opening statement:
1. The accused is the wife of Datuk
Seri Mohd Najib Bin Tun Hj Abdul Razak
(Najib Razak), the former prime minister
of Malaysia. At all times material to the
charges before the court, the accused was
not gainfully employed.
She therefore had no independent
KUALA LUMPUR (Aug 24): The High
Court (Appellate and Special Powers di-
vision) has on Thursday (Aug 24) granted
leave (permission) to Cekap Urus Sdn Bhd,
a joint venture (JV) company owned by
tycoon Tan Sri Vincent Tan Chee Yioun’s
Berjaya Group and Naza Group, to offi-
cially mount a legal challenge over the ter-
mination of a vehicle fleet project by the
government.
Judge Datuk Ahmad Kamal Md Shahid
ordered the matter to be heard on its merits
after federal counsel Mohammad Sallehud-
din Md Ali, who appeared for the Finance
12 TheEdge CEO morning brief
h o m e
Prosecution:
Rosmah has no
independent
source of income
and made false
statements on
money used
by Hafiz Yatim & Tarani Palani
theedgemalaysia.com
source of any lawful income. Yet, dur-
ing the relevant period she caused to be
deposited large sums of money into her
current account no. 10-002000005-8 (ac-
count 0058) at Affin Bank Bhd. The sums
deposited are wholly disproportionate to
the accused’s means.
The accused used the services of one
Roslan Bin Sohari’s to make these deposits
on her behalf. Roslan was at all material
times, the residential house manager of
the Seri Perdana Complex in Putrajaya.
The monies comprised in these deposits
form the subject-matter of the first to 12th
charges in this case. For completeness, it
must be said that the monies in question
were never disclosed [as] revenue as re-
quired by written law. Neither was any
income tax ever paid on these monies.
2. The monies deposited as aforesaid
were subsequently utilised by the accused
to pay telephone and credit card bills in-
curred by the accused and members of
her family. She did this through cheques
which she signed.
3. The prosecution will prove that the
accused when questioned by MACC of-
ficers made false statements concerning
Court allows
Berjaya-Naza JV
to challenge MOF’s
termination of
vehicle fleet project
by Hafiz Yatim
theedgemalaysia.com
the monies which she had paid into her
account. The prosecution will produce as
part of its case, statements recorded from
the accused under Section 32(3) of the
Anti-Money Laundering, Anti-Terrorism
Financing and Proceeds of Unlawful Ac-
tivities Act 2001 (AMLA).
4. It is the prosecution’s case that when
the totality of the evidence is considered
as a whole, the conduct of the accused
in all the circumstances of the case fair-
ly supports the irresistible inference that
the deposits in question were proceeds
of unlawful activity contrary to Section
4(1)(a) of AMLA. The evidence that the
prosecution will produce will equally es-
tablish that the deposits in question can
be reasonably believed to be property that
are proceeds of unlawful activity.
5. As we have already said, the accused
did not declare her deposits as revenue
as required by written law. The accused
thereby contravened Section 112 of the
Income Tax Act 1967, which is a sched-
uled offence under AMLA. It is there-
fore a serious offence, the commission of
which constitutes unlawful activity and is
by definition, money laundering.
6. On the aforesaid facts the prosecu-
tion will establish that the accused com-
mitted the offence of money laundering
as alleged in the charges against her.
7. With the leave of the court, the pros-
ecution will call its first witness.
Read also:
Witness testifies that he deposited an
envelope of cash into Rosmah’s account
Apex court fixes Nov 29 to hear
Rosmah’s application for leave to nullify
graft case
Ministry (MOF) and government, did not
object to the JV company’s application.
Counsel Chuar Kia Lin, who appeared
with Liew Wei Shing for Cekap Urus, told
Ahmad Kamal that the plaintiff is with-
drawing the application for a stay of the
government’s decision.
Cekap Urus is 51% owned by Berjaya,
29% owned by Naza Corp Holdings Sdn
Bhd and 20% owned by Tunku Tun Ami-
nah Sultan Ibrahim Ismail.
Read the full story
 f r i d ay A U G U S T 2 5 , 2 0 2 3
EC: Pelangai
by-election
on Oct 7
Bernama
PUTRAJAYA (Aug 24):The Election Com-
mission (EC) has fixed Oct 7 as polling day for
the Pelangai state seat by-election in Pahang.
EC chairman Tan Sri Abdul Ghani Salleh
said nomination and early voting for the
by-election have been fixed for Sept 23 and
Oct 3 respectively.
He announced this at a press conference
after chairing a special EC meeting at Me-
nara SPR here on Thursday (Aug 24) to
decide the important dates related to the
Pelangai state seat by-election.
The Pelangai state by-election was called,
following the death of its incumbent Datuk
Seri Johari Harun, 53, who was killed in
the plane crash near Bandar Elmina, Shah
Alam on Aug 17.
Apart from Johari, who was also Pahang
Local Government, Housing, Environment
and Green Technology Committee chair-
man, nine others died in the crash involv-
ing the Beechcraft Model 390 (Premier 1)
aircraft.
The Pelangai by-election is the fourth
by-election after the 15th general election
(GE15) in November last year.
KUALA PILAH (Aug 24): Six new faces
were among 10 Negeri Sembilan state ex-
ecutive councillors (exco) who were sworn
in on Thursday (Aug 24) before Negeri
Sembilan Yang Dipertuan Besar Tuanku
Muhriz Ibni Almarhum Tuanku Munawir.
The swearing-in ceremony and pres-
entation of appointment letters began at
10.15am at Istana Besar Seri Menanti here.
Also present at the ceremony were Tunku
Ampuan BesarTuanku Aishah RohaniTengku
Besar Mahmud andTunku Besar Seri Menan-
ti Tunku Ali Redhauddin Tuanku Muhriz.
Others present included Undang Luak
Sungai Ujong Datuk Klana Petra Datuk
Mubarak Dohak, Undang Luak Jelebu Da-
tuk Mendika Menteri Akhirulzaman Datuk
Maarof Mat Rashad, and Undang Luak Jo-
hol Datuk Johan Pahlawan Lela Perkasa Se-
tiawan Datuk Muhammed Abdullah
Also in attendance were Undang Luak
Rembau Datuk Lela Maharaja Datuk Mu-
hamad Sharip Othman, and Tunku Besar
Tampin Tunku Syed Razman Tunku Syed
Idrus Al-Qadri.
At the ceremony, Menteri Besar Datuk
Seri Aminuddin Harun said six of the exco
13 TheEdge CEO morning brief
h o m e
Abdul Ghani said the electoral roll (DPPR)
that will be used for the Pelangai by-election is
up to date until the May 2023 supplementary
DPPR, which was updated until Aug 17, 2023.
“The DPPR for the Pelangai by-election
contains a total of 16,456 voters, consisting
of 16,417 ordinary voters, 36 policemen
and three overseas absentee voters,” he said.
He said the estimated cost of the by-elec-
tion is RM2.1 million.
Abdul Ghani said a total of 312 staffers will
be appointed to handle the by-election process
and that a returning officer who will be assist-
ed by three assistant returning officers have
been appointed to carry out the by-election.
He said nine normal polling centres with
30 voting streams will be in use on polling
day, while one (polling) centre with a single
stream for early voting.
Abdul Ghani said the nomination centre
and vote tallying centre for the by-election
is Dewan Orang Ramai Felda Kemasul.
He said the campaigning period has been
set for 14 days, starting after the announce-
ment of the candidates running on Sept 23
until 11.59pm on Oct 6, 2023.
“Two election campaign enforcement
teams have been set up by the EC to moni-
tor campaign activities throughout the official
campaigning period,” he said.The teams are
made up of representatives from the Royal
Malaysian Police (PDRM), local authorities
and representatives of candidates contesting.
Read the full story
Six new faces
among 10 Negeri
Sembilan exco
members sworn in
Bernama
members were new face,s while four were
reappointed.
The new members are Datuk Seri
Jalaluddin Alias (senior exco), Noorzuni-
ta Begum Mohd Ibrahim, Datuk Ismail
Lasim, Mustapha Nagoor, Datuk Mohd
Faizal Ramli and Tengku Zamrah Tengku
Sulaiman.
Those reappointed are Teo Kok Seong,
Nicole Tan, J Arul Kumar and S Veerapan.
The Pakatan Harapan (PH) and Barisan
Nasional (BN) alliance formed the state gov-
ernment, after capturing 17 and 14 seats re-
spectively in the Aug 12 state elections, while
Perikatan Nasional (PN) took five seats.
BSKU chief off
to Florida to send
memory puck in
Shah Alam crash
for analysis
Bernama
KUALA LUMPUR (Aug 24): The Air
Accident Investigation Bureau (BSKU)
team leader will leave for the US on Thurs-
day (Aug 24) evening, to get the cockpit
voice recorder (CVR) memory puck of the
Beechcraft Model 390 (Premier 1) extract-
ed and analysed by a laboratory in Florida.
Transport Minister Anthony Loke
said the data analysis will be processed as
early as Monday (Aug 28)morning (US
time) because all preparations, including
clearance from the original equipment
manufacturer (OEM) laboratory, can be
obtained within these two days.
“The BSKU chief will leave for Flor-
ida at 7pm as his visa was just approved
this morning and he is expected to be in
the US for a few days.
“On Monday morning, together with
the OEM laboratory team, he will open
up the memory puck, extract and analyse
the data and then return home to make a
report,” he told a press conference here
on Thursday.
On views by some analysts that the
chances of identifying the actual cause
of the crash were slim as the CVR was
badly damaged, Loke said everyone has
their own opinions but the government
was doing its best.
“Stop making speulations. We are try-
ing our best by going to the OEM lab to
extract the data so before we get to the
lab, don’t draw conclusions because we
are committed to our duties to identify
the cause of the crash,” he said.
Meanwhile, he said the BSKU chief had
assured that the initial report of the incident
would be ready within 30 days of the crash.
“We have to understand that the report
cannot be rushed because it must follow
Annex 13-Aircraft Accident and Incident
Investigation, International Civil Aviation
Organization (ICAO Annex 13) protocol.
“So please give us some time,” he said.
In the Aug 17 incident, a Beechcraft
Model 390 (Premier 1) light aircraft,
crashed onto the Guthrie Highway near
Bandar Elmina in Shah Alam, killing all
six passengers, two crew aboard and
two others who were passing through
the crash site.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
w o r l d
Global trade
(Aug 24): Global trade volumes will grow
at a “moderate pace” in the third quarter
growth poised
of the year, continuing the uptick from
the prior period after two quarters of de-
for 3Q rebound
cline, the World Trade Organization said.
The WTO’s periodic goods barome-
— WTO
ter jumped to 99.1 from the previous
reading of 95.6 announced in May, the
Geneva-based organisation said in a re-
port published Thursday (Aug 24). The
baseline of 100 indicates growth over by Bryce Baschuk
the next quarter that’s in line with me-
dium-term trends.
(Aug 24): Nvidia Corp chief executive
Nvidia CEO
officer Jensen Huang, fresh off an upbeat
quarterly report that sent his company’s
dispels fears of
shares soaring, dispelled one of investors’
biggest concerns: that chip production
a chip shortage
won’t keep up with demand.
Though Nvidia didn’t give long-term
amid AI boom
projections Wednesday (Aug 23), Huang
said that supply will “substantially in-
crease for the rest of this year and next
year.” The company relies on vendors such
as Taiwan Semiconductor Manufacturing
Co and Samsung Electronics Co for com-
ponents, and a lack of adequate inventory
was seen as a challenge to its growth run.
In an interview Wednesday, Huang
stressed that the company was doing
everything it can to stay on top of surg-
ing demand.
“We’re focused on increasing our sup-
ply,” Huang said. “We have to do that with
great urgency, and we are.”
Nvidia has a commanding lead in the
market for artificial intelligence proces-
sors, which handle the heavy workloads
needed to power tools like OpenAI’s
ChatGPT. Its position has made it the
world’s most valuable chipmaker — with a
market capitalisation above US$1 trillion
14 TheEdge CEO morning brief
High commodity prices, tighter mon-
etary conditions, and anemic import de-
mand have weighed on global trade vol-
umes, the report said. In the first quarter,
the volume of world merchandise trade fell
1% from a year earlier and 0.3% from the
prior three-month period, it said.
Going forward, WTO said that its pro-
jected trade growth of 1.7% for 2023, “is
still attainable if trade picks up in the sec-
ond half of the year as expected.”
Bloomberg The institution said surging exports
of autos have contributed to strong-
reuters er-than-expected growth in Japan’s gross
domestic product. The Japanese economy
grew at a 6% annualised pace in the sec-
ond quarter, with much of that expansion
powered by external demand.
Despite the WTO’s rosy outlook, lead-
ing economic indicators in the US and Eu-
rope are showing signs of slowing, partly
due to continued interest rate hikes.
Last month, Port of Los Angeles ship-
ments fell 26.8% from a year earlier, and
shipping companies like AP Moller-
Maersk A/S and CMA CGM SA warn
that trade volumes will likely be depressed
for the rest of 2023.
Concerns about flagging trade growth
may fester as China’s economic engine
sputters. Weak Chinese economic data,
and a worsening property crisis have com-
pounded China’s sagging consumer de-
mand for cars, chips and electronics.
(RM4.6 trillion). The stock hit a record
high on Thursday. And the shift to AI is
only beginning, Huang said.
Accelerated computing, which speeds
through specific tasks by breaking them
up into smaller parts and working on them
in parallel, is taking over, he argues.
“The big mega theme is that the
world’s computer data centers are tran-
sitioning to a new model, from general
purpose computing to accelerated com-
by Ian King puting,” he said. The Nvidia co-founder
Bloomberg believes there’s a trillion dollars’ worth
of data centre infrastructure around the
world that has to make this change. The
company reported sales of US$13.5 bil-
lion last quarter, more than double from
a year earlier.
Such broad shifts happen rarely and
bring huge opportunities for companies
that have the right products to exploit
them, Huang said.
bloomberg “Every 15 years, you see a new plat-
form shift,” he said. “It’s happening right
now in real time.”
Read also: Nvidia CEO’s fortune surges
as high as US$46 bil on stock boom
 f r i d ay A U G U S T 2 5 , 2 0 2 3
IMF:Total
spending on fuel
subsidies topped
US$7 tril in 2022
by Libby Ge orge
Reuters
LONDON (Aug 24): Global subsidies for
fossil fuels rose by US$2 trillion (RM9.3
trillion) over the past two years to reach a
record US$7 trillion in 2022, according
to new estimates from the International
Monetary Fund.
The soaring costs, driven by post-pan-
demic consumption growth and by rising
energy costs stemming from Russia’s 2022
invasion of Ukraine, are straining budgets,
adding to pollution and exacerbating global
warming, the IMF said in a report.
“Subsidies for oil, coal and natural gas
are costing the equivalent of 7.1% of glob-
al gross domestic product,” the IMF said.
“That’s more than governments spend an-
nually on education (4.3% of global in-
come) and about two thirds of what they
spend on healthcare (10.9%).”
(Aug 24): Meta Platforms Inc, Google and
X, formerly known as Twitter, will need
to adhere to strict new content modera-
tion rules in the European Union when a
new law governing social media platforms
becomes legally enforceable from Friday
(Aug 25).
Alphabet Inc’s Google said Thursday
that it’s making several changes to comply
with the EU’s Digital Services Act, includ-
ing expanding access to data on targeting of
online ads and disclosing more information
about its content moderation operations for
services like Google Search. It will also aug-
ment risk analysis for its largest platforms.
Nineteen companies were designated
“very large online platforms” and “very
large online search engines” by the EU last
spring, which means they had more than
45 million monthly users.
These platforms now need to comply
with rules that include restrictions on tar-
geting ads to minors and using sensitive data
like race or gender in serving ads. They will
also be required to have sufficient numbers
of content moderators in each EU language.
The companies will have to submit risk
assessments to the European Commission
that detail how they mitigate the impact
of harmful content on their platforms.
Non-compliance could lead to fines as
15 TheEdge CEO morning brief
w o r l d
bloomberg
A variety of nations in Africa and else-
where in the developing world have cut
fuel subsidies in recent years due in part
to rising debt and borrowing costs.Wealth-
ier nations, where energy consumption is
higher, face less financial pressure to cut
subsidy costs.
Explicit subsidy costs — what govern-
ments pay directly to keep electricity or
pump prices artificially low — have more
than doubled since 2020, to US$1.3 tril-
lion.The IMF said that these costs are likely
to fall now that energy prices have eased,
which it said was an ideal time to scrap
subsidies.
“Falling energy prices provide an op-
portune time to lock in pricing of carbon
and local air pollution emissions without
necessarily raising energy prices above re-
cently experienced levels,” it said.
Subsidies for oil, coal But an even bigger concern, the IMF
and natural gas are said, are implicit subsidy costs, which are
costing the equivalent likely to keep rising as damage from a
of 7.1% of global gross warming planet spreads. Consumers did
domestic product. not pay for over US$5 trillion of environ-
mental costs last year, the IMF said.
“We estimate that scrapping explicit and
implicit fossil-fuel subsidies would prevent
It warned that implicit subsidies — the 1.6 million premature deaths annually, raise
cost of damage from air pollution and glob- government revenues by US$4.4 trillion,
al warming — account for the bulk of the and put emissions on track toward reach-
costs and are likely to keep rising. ing global warming targets,” the IMF said.
Google,Twitter,
high as 6% of a company’s annual reve-
nue, or even being banned from operating
Facebook under
in the bloc.
Nick Clegg, Meta’s president for global
EU scrutiny as
affairs, said the company has introduced
new steps for Facebook and Instagram, in-
new rules kick in
cluding ending targeting of ads for teenagers
based on their app activity.
“It is critical that the DSA now maintains
its primacy over existing and new national
by Jillian Deutsch laws, to protect the clarity it has created for
Bloomberg services, maintain consistency in the way
tech companies are held to account, and
reuters preserve the harmonious way people ex-
perience our platforms across the region,”
Clegg wrote in a blog post.
No ‘free pass’
The EU’s internal market commissioner,
Thierry Breton, recently met with the heads
of Twitter, Meta and TikTok to discuss the
rules. He warned these companies that they
needed to do more work to get enough con-
tent moderators in place, especially ahead
of an election in Slovakia.
“Europe is now effectively the first juris-
diction in the world where online platforms
no longer benefit from a ‘free pass’ and set
their own rules,” Breton said Wednesday in a
statement. “They are now regulated entities
in the same way financial institutions are.”
 f r i d ay A U G U S T 2 5 , 2 0 2 3
bloomberg
US jobless
claims fall as
labour market
remains tight
by Safiyah Riddle
Reuters
(Aug 24): The number of Americans fil-
ing new claims for unemployment bene-
fits fell last week, as labour market condi-
tions remained tight despite the Federal
(Aug 24): US mortgage applications for
home purchases dropped last week to an
almost three-decade low, indicating res-
idential real estate is reeling from the re-
cent spike in borrowing costs.
The Mortgage Bankers Association in-
dex of home-purchase applications fell 5%
to 142, the lowest level since 1995. The
Wednesday (Aug 23) data also showed
that the contract rate on a 30-year fixed
mortgage increased 15 basis points to
7.31% in the week ended Aug 18 — the
highest since late 2000.
Including a decline in refinancing ac-
tivity, the overall measure of mortgage
demand dropped 4.2%.
Borrowing costs have continued to
rise so far this week, and Mortgage News
Daily, which updates more frequent-
ly, put the 30-year fixed rate at almost
7.5% on Tuesday.
Mortgage rates are benchmarked to
US Treasuries, and yields on those se-
curities have been climbing as traders in-
creasingly see a resilient economy keeping
interest rates higher for longer.
Federal Reserve Chair Jerome Powell
is set to speak at the central bank’s annual
Jackson Hole symposium later this week,
and minutes from policymakers’ gathering
last month showed most officials still saw
significant upside risks to inflation, which
could require further rate hikes.
That’ll keep mortgage rates elevated
and, along with still-high home prices,
put further strain on a residential housing
16 TheEdge CEO morning brief
w o r l d
Reserve’s aggressive interest rate hikes.
Initial claims for state unemployment
benefits decreased by 10,000 to a season-
ally adjusted 230,000 for the week ended
Aug 19, the Labor Department said on
Thursday (Aug 24). The previous week’s
level was revised up modestly by 1,000.
Economists polled by Reuters had fore-
cast 240,000 claims for the latest week.
The labour market is continuing to
defy expectations in the face of the Fed’s
aggressive interest hikes since March
2022, as employers hoard workers after
struggling to find labour during the Cov-
id-19 pandemic. Labour market strength
and receding inflation are fanning opti-
mism that the economy could avoid a
recession.
The number of people receiving ben-
efits after an initial week of aid, a proxy
for hiring, decreased 9,000 to 1.702 mil-
lion during the week ending Aug 12, the
claims report showed. These so-called
continuing claims remain low by histor-
ical standards, indicating that some laid-
off workers are experiencing short spells
of unemployment.
US home
purchase
applications hit
lowest since 1995
on rate rise
by Augusta Saraiva
Bloomberg
market that had been showing promise
earlier in recent months.
The latest housing data further illus-
trate the trend — homeowners are re-
luctant to move and take on a higher
mortgage rate, so prospective buyers are
seeking out new construction instead.
A separate report Wednesday showed
new-home sales rose last month to the
highest level in a over a year after down-
ward revisions to prior months.
The MBA’s overall gauge of mortgage
applications, which also includes refinanc-
ing, fell to 184.8, near the lowest level
since 1996.
The survey, which has been conducted
weekly since 1990, uses responses from
mortgage bankers, commercial banks and
thrifts. The data cover more than 75% of
all retail residential mortgage applications
in the US.
US says stolen
Covid relief funds
seized so far top
US$1.4 bil
by Kanishka Singh
Reuters
WASHINGTON (Aug 24):The US Justice
Department said on Wednesday (Aug 23)
it has seized over US$1.4 billion (RM6.5
billion) in Covid-19 relief funds that crim-
inals had stolen, and charged over 3,000
defendants with crimes in federal districts
across the country.
The Justice Department disclosed the
results of a nationwide enforcement action
to combat coronavirus fraud, including fed-
eral criminal charges against 371 defend-
ants for offences related to over US$836
million in alleged Covid fraud.
“This latest action, involving over 300
defendants and over US$830 million in al-
leged Covid-19 fraud, should send a clear
message: the Covid-19 public health emer-
gency may have ended, but the Justice De-
partment’s work to identify and prosecute
those who stole pandemic relief funds is far
from over,” US Attorney General Merrick
Garland said in a statement.
A total of 119 defendants pleaded guilty
or were convicted at trial during the sweep,
according to the Justice Department.
The US is probing many fraud cases
pegged to US government assistance pro-
grammes. In May 2021, Garland launched
a Covid fraud enforcement task force.
Last year, the US Justice Department
tapped federal prosecutor Kevin Cham-
bers to lead its efforts to investigate alleged
fraud schemes targeting pandemic assis-
tance programmes.
Over US$200 billion from the US gov-
ernment’s Covid-19 relief programmes
were potentially stolen, a federal watch-
dog said in late June, adding that the US
Small Business Administration (SBA) had
weakened its controls in a rush to disburse
the funds.
In September 2022, the inspector gener-
al for the US Labor Department said fraud-
sters likely stole US$45.6 billion from the
US’ unemployment insurance programme
during the coronavirus outbreak by apply-
ing tactics like using Social Security num-
bers of deceased individuals.
Earlier this year, a separate watchdog re-
port said the US government likely awarded
about US$5.4 billion in Covid-19 aid to
people with questionable Social Security
numbers.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
JOHANNESBURG (Aug 24): Leaders of
the BRICS group of developing nations
have invited Saudi Arabia, Iran, Ethiopia,
Egypt, Argentina and the United Arab
Emirates to join, in a move aimed at grow-
ing the clout of a bloc that has pledged to
champion the “Global South”.
Expansion could also pave the way for
dozens of interested countries to seek admis-
sion to BRICS — currently Brazil, Russia,
India, China and South Africa — at a time
when geopolitical polarisation is spurring ef-
forts by Beijing and Moscow to forge it into
a viable counterweight to the West.
The new candidate members were an-
nounced by South African President Cyril
Ramaphosa, who is hosting a summit of
BRICS leaders.
“BRICS has embarked on a new chap-
ter in its effort to build a world that is fair,
a world that is just, a world that is also in-
clusive and prosperous,” he said.
The new candidates will be formal-
ly admitted as members on Jan 1, 2024.
Ramaphosa and Brazilian President Luiz
Inacio Lula da Silva left the door open
to the possibility of admitting other new
members in future.
“We have consensus on the first phase of
this expansion process and other phases will
follow,” Ramaphosa said at a media briefing.
Lula said globalisation’s promises had
failed, adding that it was time to revitalise
cooperation with developing countries as
“there is a risk of nuclear war”, an apparent
allusion to growing tensions between Rus-
DUBAI (Aug 24): Oil power Saudi Ara-
bia’s entry to the BRICS group of nations
highlights its ambitious drive to become a
heavyweight on the global stage, creating a
counter to its decades-old alliance with the
United States, once seen as ironclad.
The kingdom anticipates more coopera-
tion with BRICS nations, its foreign minister
said on Thursday, after the group invited
Saudi Arabia, United Arab Emirates, Iran,
Egypt and Argentina to join.
“We look forward to develop this coop-
eration to create new developmental and
economic opportunities and elevate our re-
lationship to the aspired level,” Prince Faisal
bin Farhan told a BRICS summit.
Saudi Arabia, one of the most powerful
and influential Arab states, and its neighbour
the UAE, have increasingly pursued their
own paths after concerns that the US is less
committed to the strategic region’s security.
“We’re seeing Saudi disregarding US in-
terests in several areas: the Saudi-Russian
oil market partnership, in Riyadh’s tight-
ening relationship with China, and in the
kingdom’s spate of refusals to crank up oil
production when Washington asks,” said Jim
17 TheEdge CEO morning brief
w o r l d
BRICS invites
Saudi, Iran,
UAE and others
to join developing
world bloc
by Carien du Plessis
Reuters
sia and the West over the Ukraine conflict.
United Arab Emirates’ President Mo-
hammed bin Zayed, whose country is al-
ready a member of the bloc’s New Develop-
ment Bank (NDB), said he appreciated the
inclusion of his country as a new member.
“We look forward to a continued com-
mitment of cooperation for the prosperity,
dignity and benefit of all nations and people
around the world,” he posted on messaging
platform X, formerly known as Twitter.
Pledge to rebalance world order
The debate over enlargement has topped the
agenda at the three-day summit taking place
in Johannesburg. And while all BRICS mem-
bers publicly expressed support for growing
the bloc, there were divisions among the lead-
ers over how much and how quickly.
Though home to about 40% of the
world’s population and a quarter of global
Saudi Arabia eyes
world stage after
BRICS invitation
by Yous ef Saba & Hadeel Al Sayegh
Reuters
Krane, research fellow at Rice University’s
Baker Institute in Houston.
“It’s been a long time now since Saudi
Arabia emerged from under the US shad-
ow and the kingdom has been charting an
increasingly nonaligned path that puts it at
odds with US interests.”
China, Saudi Arabia’s biggest oil cus-
tomer, has led calls to expand the emerging
market powers bloc — until now made up
of Brazil, Russia, India, China and South
Africa — to become a counterweight to the
West.
Underscoring shifting geopolitics, Saudi
Arabia hosted Chinese President Xi Jinping
for a visit in December after US President
gross domestic product, BRICS members’
failure to settle on a coherent vision for the
bloc has long left it punching below its weight
as a global political and economic player.
“This membership expansion is histor-
ic,” China’s President Xi Jinping said in re-
marks following the announcement on en-
largement. “It shows the determination of
BRICS countries for unity and cooperation
with the broader developing countries.”
More than 40 countries have expressed
interest in joining BRICS, say South Afri-
can officials, and 22 have formally asked
to be admitted.
They represent a disparate pool of po-
tential candidates motivated largely by a
desire to level a global playing field many
consider rigged against them.
They are attracted by BRICS’ prom-
ise to rebalance world bodies dominated
by the United States and other wealthy
Western states.
Indian Prime Minister Narendra Modi
said the bloc’s expansion should be an ex-
ample to other global institutions found-
ed in the 20th century that have become
outdated.
“The expansion and modernization of
BRICS is a message that all institutions in
the world need to mould themselves ac-
cording to changing times,” he said.
Read also: Egypt president Sisi looks
forward to ‘raising the voice of countries
in the south’
Joe Biden failed on a trip to the kingdom
to convince it to boost oil output to tame
high US gasoline prices.
Krane said pricing oil in non-dollar cur-
rencies was Washington’s biggest worry.
“China has been pressing Saudi Arabia
to price oil in renminbi for some time,” he
said. “The Biden administration is pursu-
ing this issue within the Abraham Accords
framework. So the kingdom appears to be
in the enviable position of “balancing” be-
tween Beijing and Washington, going with
whichever side offers the biggest prize.”
The Abraham Accords were US-bro-
kered deals that normalised ties between
Israel and Gulf states the United Arab Emir-
ates and Bahrain.
“The leadership sees BRICS as one of
the important groupings that merits greater
attention from Riyadh, given the impor-
tance of China/India in the global order,”
said Ayham Kamel, Middle East and North
Africa head at Eurasia Group.
“However, Riyadh is not exclusively fo-
cused on BRICs and is looking at G20 and
other forums as key for Saudi Arabia’s strat-
egy of increasing its geopolitical influence.”
 f r i d ay A U G U S T 2 5 , 2 0 2 3
TOKYO (Aug 24): Japan started releasing
treated radioactive water from the wrecked
Fukushima nuclear power plant into the
Pacific Ocean on Thursday (Aug 24), a
polarising move that prompted China to
announce an immediate blanket ban on all
aquatic products from Japan.
China is “highly concerned about the risk
of radioactive contamination brought by...
Japan’s food and agricultural products,” the
customs bureau said in a statement.
The Japanese government signed off on
the plan two years ago and it was given a
green light by the UN nuclear watchdog last
month. The discharge is a key step in de-
commissioning the Fukushima Daiichi plant
after it was destroyed by a tsunami in 2011.
Plant operator Tokyo Electric Power
(Tepco) said the release began at 1:03pm
local time (0403 GMT) and it had not
identified any abnormalities.
However, China reiterated its firm op-
position to the plan and said the Japanese
government had not proved that the water
discharged would be safe.
“The Japanese side should not cause
secondary harm to the local people and
even the people of the world out of its own
selfish interests,” its foreign ministry said
in a statement.
MOSCOW (Aug 24): Crash investigators on
Thursday picked through the wreckage of a
jet said to have been carrying Russian mer-
cenary chiefYevgeny Prigozhin that crashed
with no survivors, two months after he led a
mutiny against the army leadership.
Investigators opened a criminal probe
but there was no official word on what may
have caused Wednesday evening’s crash, or
even official confirmation of Prigozhin’s
death beyond a statement from the aviation
authority saying he was on board.
The Kremlin and the Defence Minis-
try also made no comment on the fate of
Prigozhin, head of the Wagner mercenary
group and a self-declared enemy of the army
top brass over what he said was its incompe-
tent prosecution of Russia’s war in Ukraine.
President Vladimir Putin made a virtual
statement to a summit of the BRICS nations
in South Africa which his foreign minister,
Sergei Lavrov, was attending. Neither ref-
erenced the plane crash in which 10 people
were said to have been killed.
State media gave the disaster low-key
coverage.
The Embraer Legacy 600 executive jet,
which had been flying from Moscow to St
Petersburg and was reported to have also
been carrying senior members of Prigozhin’s
team, crashed near the village of Kuzhenkino
in the Tver region north of Moscow.
A Reuters reporter at the crash site on
18 TheEdge CEO morning brief
w o r l d
Fukushima
wastewater
released into the
ocean, China
bans all Japanese
seafood
by Sakura Murakami
Reuters
Tokyo has in turn criticised China
for spreading “scientifically unfounded
claims.”
It maintains the water release is safe,
noting that the International Atomic En-
ergy Agency (IAEA) has also concluded
that the impact it would have on people
and the environment was “negligible.”
Japan has requested that China immedi-
ately lift its import ban on aquatic products
and seeks a discussion on the impact of
the water release based on science, Prime
Minister Fumio Kishida told reporters.
Investigators
trawl site of plane
crash believed
to have killed
Wagner boss
Prigozhin
by Andrew Osborn
Reuters
Thursday morning saw men carrying away
black body bags on stretchers. Part of the
plane’s tail and other fragments lay on the
ground near a wooded area where forensic
investigators had erected a tent.
Residents of Kuzhenkino said they had
heard a bang and then saw the jet plum-
met to the ground.
One villager, who gave his name as Ana-
toly, said: “In terms of what might have hap-
pened, I’ll just say this: it wasn’t thunder, it
was a metallic bang — let’s put it that way.”
Unnamed sources told Russian media
they believed the plane had been shot down
by one or more surface-to-air missiles. Reu-
ters could not confirm that.
Japan exported about US$600 mil-
lion (RM2.7 billion) worth of aquatic
products to China in 2022, making it
the biggest market for Japanese exports,
with Hong Kong second. Sales to Chi-
na and Hong Kong accounted for 42%
of all Japanese aquatic exports in 2022,
according to government data.
China customs did not give details on
the specific aquatic products impacted by
the ban and did not immediately respond
to a request for comment.
Decades long process
The Fukushima Daiichi plant was de-
stroyed in March 2011 after a massive 9.0
magnitude earthquake generated power-
ful tsunami waves causing meltdowns in
three reactors.
The first discharge totalling 7,800 cu-
bic metres — the equivalent of about three
Olympic swimming pools of water — will
take place over about 17 days.
Read the full story
Read also: How Japan will release treated
water from the Fukushima nuclear plant
Mourners left flowers and lit candles
near Wagner’s offices in St Petersburg.
ATelegram channel linked toWagner, Grey
Zone, pronounced Prigozhin dead onWednes-
day evening, hailing him as a hero and a pa-
triot who it said had died at the hands of un-
identified people it called “traitors to Russia”.
Amid the absence of verified facts, some
of his supporters have pointed the finger
of blame at the Russian state, others at
Ukraine, which was due to mark its Inde-
pendence Day on Thursday.
Whoever or whatever was behind the
crash, his death would rid Putin of some-
one who had mounted the most serious
challenge to his authority since he came
to power in 1999.
Prigozhin’s death would also leave Wag-
ner, which incurred Putin’s wrath in June by
staging a failed mutiny against the army top
brass, leaderless and raise questions about
its future operations in Africa and elsewhere.
The plane showed no sign of a prob-
lem until a precipitous drop in its final 30
seconds, according to flight-tracking data.
Wagner co-founder also on plane.
Rosaviatsia, Russia’s aviation agency, pub-
lished the names of all 10 people on board
the downed plane, including Prigozhin and
that of Dmitry Utkin, his right-hand man.
Read the full story
 f r i d ay A U G U S T 2 5 , 2 0 2 3
(Aug 24): Türkiye raised interest rates far
more than investors expected, triggering a
rally in the lira, in the latest sign that a new
lineup of central bankers favors aggressive
moves to curb inflation running near 50%.
The lira reversed losses after the deci-
sion and then extended its rally, appreciat-
ing as much as 7% against the US dollar.
The currency was trading at 25.48 per
greenback as of 3.52pm in Istanbul.
The Monetary Policy Committee, un-
der Governor Hafize Gaye Erkan, raised the
benchmark one-week repo rate to 25% from
17.5%, the sharpest increase since 2018.
Most economists polled by Bloomberg pre-
dicted a hike to 20%.
It’s the latest indication that Türkiye’s
new administration is prepared to move
away from the unorthodox policies — in-
cluding ultra-low borrowing costs — that
were championed by President Recep
Tayyip Erdogan but caused foreign trad-
ers to flee the country’s bond and stock
markets en masse.
Since winning reelection in May to take
his rule into a third decade, Erdogan has
pledged to shift course to rein in inflation
and get investors back.
Markets cheered the rate announcement
on Thursday. Bank shares surged and the
cost to insure Turkish debt against default
for five years dropped below 400 basis points.
The one week-repo rate is now at the
highest since Türkiye started to use it as
the sole benchmark. Official borrowing
costs were last above 25% in 2004, when
the central bank used the overnight bor-
rowing and lending rates to conduct mon-
etary policy.
JAKARTA (Aug 24): Indonesia’s central
bank kept interest rates unchanged on
Thursday (Aug 24), as expected, saying
current levels are sufficient to keep infla-
tion in check, while strengthening efforts
to stabilise the rupiah currency.
Bank Indonesia (BI) plans to issue new
rupiah-denominated securities, using its
holdings of government bonds as the un-
derlying asset, as a new monetary instru-
ment aimed at attracting foreign portfolio
capital flows, Governor Perry Warjiyo said.
BI kept the benchmark seven-day re-
verse repurchase rate at 5.75% for its sev-
enth straight monthly policy review, as widely
expected by economists surveyed by Reu-
ters. Its two other main rates were also kept
unchanged.
BI has been trying to balance currency
stability, keeping inflation in check and
maintaining growth momentum in South-
east Asia’s largest economy as exports fall
amid softening commodity prices and
weakening global growth.
19 TheEdge CEO morning brief
w o r l d
Lira rallies as
Türkiye stuns
with biggest rate
hike in years
by Beril Akman
Bloomberg
It was the MPC’s first decision since
three new deputy governors were ap-
pointed late last month. They included
a former adviser to the Federal Reserve
Bank of New York and the ex-chief econ-
omist at one of Türkiye’s biggest private
lenders.
Piotr Matys, a currency analyst at In-
Touch Capital Markets in London, said
the decision “sends a very strong signal
that the central bank is determined to rein
in inflation.”
“ Türkiye’s central bank has stunned by
agreeing a supersized rate hike that we see
as a front-loaded move aimed at carrying a
strong message of a change of policy from
the newly installed MPC members. Look-
ing ahead, we expect the central bank’s
policy actions to be focused on further
revisions and undoing in its complex set
of regulations and practices,” Selva Ba-
har Baziki, an economist with Bloomberg
Economics, said.
The MPC said it “decided to continue
the monetary tightening process in order
to establish the disinflation course as soon
Bank Indonesia
holds rates
steady, plans new
way to attract
inflows
by Fransiska Nangoy &
Bernadette Christina
Reuters
There have been calls for BI to
start considering rate cuts to shore up
growth after inflation cooled to within
BI’s target earlier than expected, but
some economists say further tighten-
ing is still necessary to narrow rate dif-
ferentials with US assets and prevent
capital outflows.
as possible, to anchor inflation expecta-
tions, and to control the deterioration in
pricing behavior.”
Erkan, appointed in June, is bringing
to an end an era of ultra-loose monetary
policy. The governor has said annual price
growth won’t peak until the second quar-
ter of next year at about 60%.
Apart from raising policy rates, the cen-
tral bank has also taken other measures to
increase the cost of money. Its latest regula-
tion took aim at a government-backed sav-
ings program that protects account holders
from any weakening of the lira. Officials
now want them to convert to normal lira
accounts.
On Thursday, the MPC said that the
recent regulations would “strengthen the
monetary-transmission mechanism” and
the committee would continue “to make
decisions on quantitative tightening and
selective credit tightening.”
While Erkan has now brought rates to
nearly triple their level when she took over
in June, critics continue to question her
commitment to tighter policy after two
previous decisions underwhelmed traders’
expectations.
Türkiye’s inflation-adjusted rates re-
main well in negative territory and among
the lowest in the world.
“It’s really hard for me to get excit-
ed about this hawkish surprise after two
straight dovish surprises,” said Win Thin,
global head of currency strategy at Brown
Brothers Harriman in NewYork. “Let’s talk
after the next decision September 21 and
if it delivers another large hike, perhaps
things really have changed.”
Guarding the rupiah “is our way to pro-
tect the domestic economy, inflation and
growth from global spillovers”, Warjiyo
told reporters.
“All countries are experiencing curren-
cy depreciations, our focus is to stabilise
the exchange rate through intervention,”
the governor said, especially by interven-
ing in the spot and domestic non-deliv-
erable forward markets and relying on its
new securities.
“We have over 1,000 trillion rupiah
of government bonds that we can use as
underlying assets for the Bank Indonesia
Rupiah Securities,” he said, adding that
the notes will have 6-, 9- and 12-month
maturities and are to be offered from
Sept 15.
The new notes can be traded by the
public in the secondary market, including
by foreign investors.
Read the full story
 f r i d ay A U G U S T 2 5 , 2 0 2 3 20 TheEdge CEO morning brief

w o r l d

(Aug 24): Internet startup VNG Ltd filed
for an initial public offering (IPO) in the
US, making it the first Vietnamese tech-
nology company to seek a listing in New
York and adding to a diversifying roster
of companies planning listings, as equity
markets thaw.
VNG, which plans to offer almost 22
million shares in the IPO, will set a pro-
posed price range in a later filing with the
US Securities and Exchange Commission.
It said in its filing on Wednesday that VNG
will continue to be controlled by its found-
ers, Le Hong Minh and Vuong Quang Khai.
VNG will own 49% of VNG Corp, the Vi-
etnamese operating company.
VNG aims to raise about US$150 mil-
lion in the IPO that could take place as soon
as September, Dow Jones reported, citing
people familiar with the matter.
Formerly known as Vinagame, VNG
Corp had its start as a game publisher in
2004. It develops and publishes its own ti-
tles, as well as local versions of international
hits, and has gradually expanded to a wide
range of services, such as music sharing,
video streaming, messaging, a news portal
and mobile payments. It has been exploring
going public in the US since at least 2017.
Its messaging app, Zalo, has won over
Meta Platform Inc’s Facebook Messenger
to become the most-used chatting platform
in Vietnam since 2020. Zalo has 75 mil-
lion monthly active users, according to a
statement.
“We were born after the war, in a nation
that had found peace and unity, but was
still struggling with under-development and
isolation,” VNG’s founders said in a letter
to investors, included in the prospectus.
“Little did we know how lucky we were
it completed a merger with blank-cheque
Internet startup company Black Spade Acquisition Co in
a deal valuing it at US$23 billion.
VNG files to A listing by VNG would add momen-
tum to an IPO market that has been warm-
become first ing in fits and starts. Chip designer Arm
Holdings Ltd, majority owned by SoftBank
Vietnam tech firm Group Corp, is planning to go public in
September, in what would be the year’s
to go public in US biggest IPO. San Francisco-based grocery
delivery firm Instacart Inc, as well as mar-
keting, data automation provider Klaviyo
by Nguyen Xuan Quynh & Michael Hytha and footwear maker Birkenstock, are also
Bloomberg preparing to file for IPOs, Bloomberg News
has reported.
bloomberg VNG sees games as the spearhead of its
global expansion plans, while also seeking
to add revenue from artificial intelligence
and cloud computing products, Minh, the
company’s chief executive officer, said in an
interview last year. Its gaming arm VNG-
Games has at least nine studios outside of
Vietnam, including in Thailand, Singapore,
Malaysia, Taipei and China.
The offering is being led by Citigroup
Inc, Morgan Stanley, UBS Group AG and
Bank of America Corp.The company plans
A listing by VNG for its shares to trade on the Nasdaq Glob-
would add momentum al Select Market under the symbol VNG.
to an IPO market that Once the listing is completed, the two
has been warming founders will control 51% of the voting
power through a dual-class share structure.
in fits and starts. Tencent Holdings Ltd will have a stake
corresponding to 23% of the votes, while
Singapore sovereign wealth fund GIC Pte
when the Internet arrived in Vietnam in Ltd will hold 5.4% of the votes.
the middle of the 1990s. The world magi- VNG reported a pretax loss of 614 bil-
cally and suddenly opened the door for us.” lion dong (US$25.6 million) for the six
VNG Ltd’s IPO would follow this months ended June 30, according to the
month’s US debut of Vietnamese elec- filing.Total revenue for the period was 3.96
tric-vehicle maker VinFast Auto Ltd, after trillion dong.

(Aug 24): Boeing has recently identified a
new 737 MAX quality problem involving
supplier Spirit AeroSystems that has re-
sulted in improperly drilled holes on the
aft pressure bulkhead, the planemaker said
on Wednesday (Aug 23).
Boeing said the defect will delay near-
term deliveries and the company is evalu-
ating whether it could cause it to miss its
annual delivery target of at least 400 Boeing
737s this year.
Boeing shares were down 2.7% and
Spirit shares fell 6.1% in afterhours trading.
The new supply-chain snag is the latest
issue to impede deliveries of the cash-gen-
erating MAX, following Boeing’s disclosure
of a problem in April that Spirit had im-
properly installed brackets joining the aft
fuselage to the vertical tail.
Boeing confirmed that the latest issue
will delay the first MAX 8 delivery to
Malaysia Airlines, which had scheduled
New Boeing 737
MAX supplier
defect to delay
aircraft deliveries
by Valerie Insinna & David Shepardson
Reuters
an Aug 28 arrival event.
Spirit said that because it uses multiple
suppliers for the aft pressure bulkhead, not
all 737 fuselages are impacted by the new
“elongated” hole problem.
“Based on what we know now, we be-
lieve there will not be a material impact to
our delivery range for the year, related to
this issue,” Spirit said.
So far, Boeing believes the defect is lim-
ited to a portion of its bestselling MAX
8 model, but the company is evaluating
whether older-model 737 Next Generation
jets are also impacted.
It is unclear as to how many jets will
need to be fixed, and how long it takes to
complete rework will vary, depending on
the condition of the aircraft, Boeing said.
“We continue to deliver 737s that are
not affected,” said Boeing, which said the
issue was “recently” discovered but did not
provide further clarification.
Spirit said it has implemented changes
to its manufacturing processes to correct
the issue.
The Federal Aviation Administration
said it was aware of the issue, which does
not affect safety of flight.
Trade publication The Air Current first
reported that Spirit was responsible for the
work on the aft pressure bulkhead.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
(Aug 24): Singapore will raise S$2.8 bil-
lion (RM9.7 billion) of green bonds by
reopening an existing 50-year maiden
note it sold last year, adding resources
to its climate-change efforts.
The city-state — which boosted the
size from an earlier target of at least S$1.8
billion — is set to raise S$2.75 billion
via a placement to institutions and S$50
million through a public offering, accord-
ing to a person with knowledge of the
matter, who asked not to be identified
as the information is private. The issuer
earlier announced details of the sale on
the website of the Monetary Authority
of Singapore, or MAS, which is acting as
a government agent in the sale.
The offering underscores a rush by
borrowers to finance projects that will
provide environmental benefits and sup-
port sustainable development. Singapore
joins Hong Kong and countries such as
(Aug 24): The prospect of global interest
rates remaining higher for longer is tipping
the case for many investors to switch into
bonds from stocks.
Fixed income offers a 180-basis-point
yield premium over the dividend returns
from stocks, according to data compiled
by Bloomberg. That’s the widest in 15 years,
and the gap is likely to persist or even wid-
en as traders bet that the era of low rates
has come to an end.
Investors willing to make that switch
have had to stomach a brutal bond selloff
that shows few signs of easing. The latest
EPFR Global data suggest that the shift,
even if costly in recent months, is hap-
pening as debt funds reeled in their 21st
consecutive week of inflows, while their
stock counterparts recorded outflows of
around US$2.2 billion (RM10.2 billion).
In major markets, investors expect yields
to return to levels seen before the global
financial crisis.
“Even the investment-grade bonds
are giving you equity-like returns,” with
half the volatility, Sanjay Guglani, chief
executive officer at Silverdale Capital Pte
Ltd, a Singapore-based fund manager who
manages about US$1 billion of assets, told
Bloomberg Television. “This is a dawn of
a new era for fixed income, we never had
such fantastic yields for almost 20 years.”
Global bonds are offering an average
yield of 4.0%, data compiled by Bloomberg
show, almost twice as much as the 2.2%
dividend return for the MSCI ACWI In-
dex. Fidelity International points out that
positive real yields make the case for Treas-
uries even more compelling.
The next cue for traders is likely to come
when the world’s top central bankers gather
21 TheEdge CEO morning brief
w o r l d
Singapore joins
green bond rush
with US$2.1 bil
offering
by Ameya Karve
Bloomberg
Germany and Italy in selling green bonds
this year, pushing global issuance of the
environmentally friendly notes by sov-
ereigns and companies to over US$344
billion so far in 2023, up 18% from a year
earlier, Bloomberg-compiled data show.
Singapore will price the notes to yield
3.04%, inside an earlier target of about
3.15%. The sale is part of an effort, an-
Bond buyers
haven’t had it this
good since the
financial crisis
by Tassia Sipahuta r & Ameya Karve
Bloomberg
at the annual Jackson Hole symposium from
Thursday to discuss the outlook for mone-
tary policies. Federal Reserve Chair Jerome
Powell is slated to speak Friday.
The years following the global financial
crisis, when policymakers were looking to
juice up economies and combat anaemic
price pressures with ultra-low interest rates,
were the heyday for stocks, according to
the metric comparing bond yields and div-
idend yields.
But the relationship reversed in early
2022, as the Fed kicked off its most aggres-
sive tightening campaign in four decades.
That’s because investors are betting high-
er borrowing costs will stymie economic
growth and crimp corporate profits.
The prospect that borrowing costs may
rise further — with Fed minutes published
on Aug 16 showing rate setters remain largely
concerned about inflation — has pummelled
equities in recent weeks. MSCI’s gauge of
developed and emerging market stocks has
fallen over 5% so far this month.
“We are seeing across regions, some
shifts from equity to buy high-quality
credit,” said Adam Whiteley, head of global
credit at London for BNY Mellon Corp’s
nounced last year, to raise as much as S$35
billion of environment-focused financing
by 2030. Proceeds from the deal will be
used to finance expenditures in support of
the Singapore Green Plan 2030, including
the development of two routes on its elec-
tric rail network, according to a statement
on the MAS website on Aug 21.
MAS hired Citigroup Inc, DBS Bank
Ltd, Oversea-Chinese Banking Corp,
Standard Chartered Plc and United
Overseas Bank Ltd for the placement
to institutions, while DBS, OCBC and
UOB are participating banks for the pub-
lic offering.
The note maturing in August 2072
traded above par at about 101 Singa-
pore cents as of 2:11pm local time, ac-
cording to data compiled by Bloomberg.
That’s down from nearly 125 cents in
May, but still higher than when priced
at 98.976 cents.
Insight Investment. “Under the current
environment of higher inflation and eco-
nomic uncertainty, investors are definitely
looking at bonds as a relatively safe asset
that can offer an alternative to stocks.”
But, there’s still significant debate over
where policy rates are headed.Treasury yields
took a tumble on Wednesday as US data
trailed economists’ forecasts and Citigroup
Inc noted that a short squeeze may be emerg-
ing after the recent ramp-up in bearish bets.
In contrast, equity traders had reason to
cheer after a bullish earnings forecast from
Nvidia Corp spurred a rally in S&P 500
and Nasdaq 100 futures. The chipmak-
er’s shares soared 10% in US post-mar-
ket trading Wednesday after it delivered a
third-straight sales forecast that surpassed
Wall Street estimates.
Sceptics also note that Japan is an out-
lier. Equity funds recorded a 10th week of
inflows in the week ended Aug 16, accord-
ing to data from EPFR. Meanwhile, debt
funds had the biggest inflow in two years
in the week ended Aug 9.
This came on the heels of a move by the
Bank of Japan in July to loosen its grip on
bond yields — a decision that’s expected
to boost the yen over time and make do-
mestic assets more attractive. The positive
sentiment pushed the yield spread between
the bonds and stocks to near the narrowest
in more than two years.
Other than Japan, Asia may offer a val-
ue proposition for those arguing the case
for equities. Payout ratios in the region
are some of the lowest globally, “so the
longer-term story for dividend growth for
equities here is very compelling”, said Sat
Duhra, a fund manager at Janus Hender-
son Investors.
 f r i d ay A U G U S T 2 5 , 2 0 2 3
Coalition quagmire awaits new
Thai leader after Thaksin’s return
(Aug 24): Thailand’s Srettha Thavisin may
soon find that winning the prime minister’s
job was easier than running a coalition gov-
ernment made up of 11 parties previously
seen as sworn enemies.
After three months of post-election
haggling, Srettha’s coalition — a mix of
populist and conservative parties — is like-
ly to be shaky, analysts say, since it was
born out of a deal that centred around for-
mer prime minister Thaksin Shinawatra’s
return from 15 years of exile.Thaksin, who
was jailed upon arrival over corruption cas-
es but may get a royal pardon, is the de
facto head of the Pheu Thai party leading
the coalition.
Srettha — a former property tycoon
and confidante of Thaksin who leaped
from more than 30 years in the private
sector to the country’s top political office
— seemed to acknowledge the challenge
he faces after being formally appointed
prime minister.
“You have to wait for the formation to
be completed first and let us collectively,
as a group, try to move this country for-
ward,” the 61-year-old Srettha said. “Then
you can judge whether it’s fragile or not.”
The stability of the incoming govern-
ment will be a key metric tracked by for-
eign investors, who have dumped US$3.8
billion (RM17.64 billion) in Thai stocks
this year amid the political uncertainty that
followed the May general election. On a
positive day for regional stocks, Thailand’s
benchmark equity index was up about
0.6% on Thursday (Aug 24), while the
baht gained about 0.4%.
In a ceremony Wednesday (Aug 23),
Srettha vowed to bring change to Thailand
at what he called a “critical juncture” for
the nation, saying his government’s poli-
cies will foster economic development and
usher in changes at the macro as well as
household levels.
Srettha’s success or failure could de-
pend on the final makeup of his ruling
cabinet, which will help guide Thailand’s
US$500 billion economy, the second-larg-
est in Southeast Asia. That process is ex-
pected to be finalised in the coming days or
weeks, with the new government in place
in September.
Thaksin’s return on Tuesday (Aug 22),
which came just hours before Srettha won
his majority in parliament, was made pos-
sible after the Pheu Thai party abandoned
a previous alliance with the Move Forward
party, the top vote-getter in the election.
22 TheEdge CEO morning brief
w o r l d
by Patpicha Tanakasempipat
Bloomberg
The stability of the
incoming government
will be a key metric
tracked by foreign
investors, who have
dumped US$3.8 billion
(RM17.64 billion) in
Thai stocks this year.
Bloomberg
Srettha Thavisin, a former property tycoon
and confidante of Thaksin Shinawatra
who leaped from more than 30 years in
the private sector to the country’s top
political office, seemed to acknowledge
the challenge he faces after being formally
appointed prime minister.
2014 coup
Pheu Thai’s move to align with conserv-
ative parties it had previously vowed not
to work with effectively allowed the mili-
tary-backed establishment that spent years
undermining election wins by Thaksin and,
later, his sister, to stay in power.
Nearly 10 years after a coup paused
democracy in Thailand, Srettha also faces
doubts over whether he may be too inex-
perienced to navigate the nation’s compli-
cated political landscape, which includes
the royal family, a politically-active military
and the mass of pro-democracy support-
ers who turned out for Move Forward and
are angry at being out-manoeuvred for the
prime minister’s post.
“Srettha will likely be a fairly weak pre-
mier — a puppet serving both Thaksin
and key establishment figures,” said Pe-
ter Mumford, Southeast Asia practice head
at the Eurasia Group. “It seems likely that
Srettha’s coalition will collapse before com-
pleting a four-year parliamentary term.”
Balance of power
A rough division of cabinet portfolios hint-
ed at the complex power-sharing arrange-
ment he’s going to balance. According to
Pheu Thai, the party is set to install eight
ministers, the same number as what’s di-
vided between the three key pro-establish-
ment groups — the Bhumjaithai Party of
cannabis champion Anutin Charnvirakul
and pro-military parties backed by former
junta leaders Prayuth Chan-Ocha and
Prawit Wongsuwan.
“It’s clear that the ultimate winner of
this deal is the establishment, because of
the weight of the military and conserva-
tive elements in the coalition,” said Na-
pon Jatusripitak, a visiting fellow at the
ISEAS-Yusof Ishak Institute.
Yet while most of the military-appointed
Senate’s votes for Srettha came from mem-
bers known to be aligned with Prayuth,
those linked to Prawit largely abstained.
That suggests the establishment may also
be divided, which could signal an unstable
coalition once governing begins.
“If there are stability issues or failure
of management, Pheu Thai will be the
one that’s held accountable, not the oth-
er groups,” Napon said.
Level of distrust
Questions also remain over whether a coa-
lition with such disjointed party ideologies
can really work together. While Pheu Thai
said all its partners agreed to implement
its campaign pledges, those regarding re-
writing the constitution and ending mil-
itary conscription may become a source
of friction.
“There will be a high level of distrust
between Pheu Thai and the parties that
were in the outgoing military-backed ad-
ministration, regardless of whatever deals
have been done by Thaksin and key gen-
erals,” Mumford said.
A dance to outmanoeuvre each other
will set the tone for the incoming governing
coalition. A crucial turning point is seen
early next year, when the Senate’s power
to pick prime ministers will expire under
the current constitution, which was writ-
ten after Prayuth’s coup in 2014 and de-
signed to entrench establishment powers
in Thai politics.
“That would be a moment for Thaksin
or Pheu Thai to reopen negotiations with
the conservatives,” Napon said. Thaksin
“may be thinking he’s just hanging in there
until he emerges with the upper hand.”
 f r i d ay A U G U S T 2 5 , 2 0 2 3
Michael Jordan is richest NBA legend
with a US$3.5 bil fortune
(Aug 24): Michael Jordan is the greatest bas-
ketball player of all time. And the richest.
The National Basketball Association
legend’s sale of his stake in the Charlotte
Hornets this month cemented his net
worth at an estimated US$3.5 billion,
according to the Bloomberg Billionaires
Index, which is calculating his fortune for
the first time.
Jordan, who led the Chicago Bulls to
six NBA titles and won five MVP awards,
is a cultural icon whose likeness, from his
silhouette on shoes to his smiling face on
US$100 collectible Wheaties boxes, is
ubiquitous.
The hall-of-fame player became the
league’s first Black team owner in 2010
when he bought a majority stake in the
Hornets, then called the Bobcats. But it
was a licensing agreement with Nike Inc in
the 1980s, when Jordan was still relatively
unknown, that formed the foundation of
his trailblazing fortune.
The sale of Jordan’s Hornets stake
follows a standout 2022 for sports team
transactions and affirms the NBA’s status
among the world’s most profitable leagues.
Its franchises have soared in value in re-
cent years as billionaires have used their
vast wealth to become owners. Mat Ishbia,
who founded wholesale mortgage lender
UWM Holdings Corp, agreed last year to
buy more than 50% of the Phoenix Suns
in a record deal that valued the club at
US$4 billion.
Jordan sold his ownership in the Hor-
nets to a group led by Gabe Plotkin, found-
er of Melvin Capital Management, and
Rick Schnall, co-president of private equity
firm Clayton, Dubilier & Rice. As part
of the US$3 billion deal, Jordan retains
anundisclosed minority stake, according
to the team.
Bloomberg’s estimate assumes he sold
a 65% stake in the team and kept a less
than 5% interest.
“Now is the right time for me to hand
over the reins,” Jordan, 60, said in an Aug
3 open letter to Hornets fans. “I’m ex-
cited to see what the future holds, and I
look forward to supporting the team and
the community in my new role for many
years to come.”
A spokesperson for Jordan’s family of-
fice declined to comment for this story.
Mom’s advice
Aside from the Hornets, much of Jordan’s
wealth stems from his wildly successful Jor-
23 TheEdge CEO morning brief
w o r l d
by Amanda Albright &
Devon Pendleton
Bloomberg
Last year, Jordan
Brand recorded
US$5.1 billion in
revenue, representing
almost 11% of
Nike’s total sales.
dan Brand apparel line at Nike, which was
the subject of this year’s Ben Affleck-di-
rected film Air.
His mother, Deloris Jordan, was inte-
gral in securing that deal, Jordan said in
The Last Dance docuseries that aired on
ESPN and Netflix.
“My mother said, ‘You’re going to go
listen.You may not like it, but you’re going
to go listen,’” Jordan said in the docuseries.
In 1984, he signed a five-year contract
with Nike for US$2.5 million. The first Air
Jordan model was introduced soon after.
Last year, Jordan Brand recorded
US$5.1 billion in revenue, representing
almost 11% of Nike’s total sales, accord-
ing to company filings.
Thilo Kunkel, director of Temple Uni-
versity’s Sport Industry Research Center,
said there’s “wild speculation” about how
much Jordan has earned from Nike. Typ-
ically, such deals feature royalties plus
bonus-style payments when certain sales
thresholds are met.
“If it was its own brand, it would have
a pretty decent market cap rivaling some
of the Under Armours of the world,” he
said. “It’s almost like a luxury sports brand
at this point.”
The Bloomberg index calculation esti-
mates that he earned a 5% royalty on Air
Jordan’s sales as well as income from en-
dorsement deals and his NBA salary. Nike
didn’t respond to requests for comment
about Jordan’s earnings.
Like Mike
In recent years, other athletes have pur-
sued their own long-term brand deals with
sports apparel lines in the hopes of being
“like Mike.” Under Armour Inc announced
in March that it reached a long-term deal
with NBA star Steph Curry for his Curry
Brand that includes an annual cash pay-
ment, incentives, royalties and stock. And
NBA star LeBron James built up a roughly
US$1.5 billion fortune through sponsor-
ships, investments and his own consumer
and entertainment business, the SpringHill
Co, according to the index.
Simeon Siegel, an analyst for BMO
Capital Markets, said the Jordan brand
has “transcended” him as a player. Many
of its customers are too young to have even
seen him play professional basketball.
“Jordan the person and Jordan the
brand have helped shape Nike as well
as the entire athletic apparel landscape,”
he said.
Then there are the other endorsements.
He signed a 10-year, US$13.5 million deal
with Gatorade, which resulted in a famous
1991 TV ad called “Be Like Mike.” He’s
appeared on Wheaties boxes 19 times,
more than any other athlete.
In 1991, at the height of his career, the
NewYork Times reported that he was earn-
ing between US$15 and US$20 million
annually from deals with various brands.
He’s also made bets on other
sports-related businesses. In 2020, he
launched Nascar’s 23XI Racing, whose
roster includes Bubba Wallace, the cir-
cuit’s only black driver. That same year,
Jordan was granted an equity interest
in DraftKings Inc, where he serves as a
special adviser to the board. The size of
his stake in the sports-betting company,
which started trading publicly in April
2020, is undisclosed.
A spokesperson for DraftKings declined
to comment.
The earnings he received as a player
are nothing to scoff at, either. He was paid
more than US$90 million during his ca-
reer with the Bulls and Washington Wiz-
ards, according to Spotrac, which tracks
sports contracts.
Read the full story
 F R I D AY A U G U S T 2 5 , 2 0 2 3
M A R K E T S
CPO RM 3,879.00-2.00 OIL US$ 82.41-0.80 RM/USD 4.6460 RM/SGD 3.4312 RM/AUD 2.9951 RM/GBP 5.8868 RM/EUR 5.0403
Top 20 active stocks
NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
HONG SENG CONSOLIDATED BHD 268.50 -0.005 0.050 -77.27 255.4
SAPURA ENERGY BHD 119.73 0.000 0.050 42.86 799.0
PERDANA PETROLEUM BHD 98.30 -0.020 0.215 72.00 477.0
RGB INTERNATIONAL BHD 91.00 -0.035 0.375 108.33 577.8
CN ASIA CORP BHD 82.60 -0.010 0.230 -6.12 56.3
VELESTO ENERGY BHD 52.08 0.005 0.240 60.00 1971.7
PARKSON HOLDINGS BHD 50.93 -0.030 0.335 148.15 384.9
SYSTECH BHD 45.14 -0.020 0.370 57.45 128.0
MY EG SERVICES BHD 40.65 0.005 0.810 -6.00 5998.4
GLOSTREXT BHD* 40.61 0.005 0.250 NULL 101.8
SARAWAK CONSOLIDATED 37.40 0.005 0.445 206.90 284.9
BINASAT COMMUNICATIONS BHD 35.95 0.030 0.345 13.11 134.0
WIDAD GROUP BHD 35.62 0.000 0.440 2.33 1362.4
BOUSTEAD PLANTATIONS BHD 34.50 0.000 1.370 112.40 3068.8
BUMI ARMADA BHD 33.62 -0.010 0.500 4.17 2961.3
NEXGRAM HOLDINGS BHD 30.26 0.005 0.015 -78.57 9.7
REACH ENERGY BHD 29.46 0.005 0.040 -11.11 85.2
JAKS RESOURCES BHD 28.78 -0.005 0.200 -14.89 458.0
CLASSITA HOLDINGS BHD 27.21 -0.005 0.070 -80.82 86.3
DOLPHIN INTERNATIONAL BHD 25.48 0.010 0.025 0.00 33.4
Data as compiled on Aug 24, 2023 *Glostrext was listed on Aug 15, 2023 Source: Bloomberg
Top gainers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
KEY ALLIANCE GROUP BHD 0.010 100.00 259.8 100.00 36.8
DOLPHIN INTERNATIONAL BHD 0.025 66.67 25,481.7 0.00 33.4
BCM ALLIANCE BHD 0.015 50.00 452.0 -40.00 30.5
AE MULTI HOLDINGS BHD 0.015 50.00 200.0 -40.00 32.5
AT SYSTEMATIZATION BHD 0.015 50.00 2,880.2 0.00 101.8
METRONIC GLOBAL BHD 0.015 50.00 689.7 -25.00 23.0
NEXGRAM HOLDINGS BHD 0.015 50.00 30,262.6 -78.57 9.7
SMTRACK BHD 0.030 20.00 89.0 -40.00 36.1
TWL HOLDINGS BHD 0.035 16.67 5,668.3 0.00 157.4
TA WIN HOLDINGS BHD 0.040 14.29 1,272.8 -27.27 137.4
FITTERS DIVERSIFIED BHD 0.040 14.29 6,806.5 -42.86 93.7
REACH ENERGY BHD 0.040 14.29 29,462.3 -11.11 85.2
KOMARKCORP BHD 0.040 14.29 539.7 -27.27 46.2
BERJAYA ASSETS BHD 0.285 14.00 417.6 -1.72 729.1
XOX TECHNOLOGY BHD 0.045 12.50 1,550.9 0.00 40.2
MTOUCHE TECHNOLOGY BHD 0.045 12.50 60.0 -10.00 41.7
VIZIONE HOLDINGS BHD 0.050 11.11 77.6 -9.09 102.3
EA TECHNIQUE M BHD 0.265 10.42 20,322.1 55.88 140.6
MBM RESOURCES BHD 4.070 10.30 12,533.3 29.13 1590.9
CITRA NUSA HOLDINGS BHD 0.055 10.00 467.5 -15.38 39.6
Data as compiled on Aug 24, 2023 Source: Bloomberg
Top gainers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
MBM RESOURCES BHD 4.070 0.380 12533.3 29.13 1590.9
AURELIUS TECHNOLOGIES BHD 2.740 0.230 2158.9 49.73 1079.6
PPB GROUP BHD 15.940 0.180 219.3 -8.60 22,676.2
JCBNEXT BHD 1.570 0.110 35.0 22.66 207.3
EUROSPAN HOLDINGS BHD 1.480 0.110 214.2 30.97 65.7
YNH PROPERTY BHD 5.100 0.100 94.1 20.57 2695.2
RAPID SYNERGY BHD 23.480 0.100 70.7 47.12 2,509.9
MALAYSIAN PACIFIC INDUSTRIES 27.000 0.100 168.7 -6.12 5370.2
KESM INDUSTRIES BHD 7.430 0.090 1.1 5.84 319.6
DRB-HICOM BHD 1.570 0.090 4694.1 -1.88 3035.2
CENTRAL GLOBAL BHD 2.300 0.090 3282.9 154.14 363.5
CELCOMDIGI BHD 4.390 0.090 1803.9 9.75 51501.3
FRONTKEN CORP BHD 3.460 0.080 3686.0 12.34 5,440.5
UMW HOLDINGS BHD 4.620 0.070 4097.9 33.14 5,397.5
TIME DOTCOM BHD 5.690 0.070 1535.4 29.04 10508.5
SIME DARBY PLANTATION BHD 4.390 0.070 1007.2 -5.59 30,360.0
GREATECH TECHNOLOGY BHD 4.620 0.070 458.7 -4.55 5,791.5
GENETEC TECHNOLOGY BHD 2.360 0.070 1966.0 -1.26 1,785.7
UNISEM M BHD 3.280 0.060 531.9 18.84 5290.9
QL RESOURCES BHD 5.480 0.060 505.8 -0.54 13,336.4
Data as compiled on Aug 24, 2023 Source: Bloomberg
24 THEEDGE CEO MORNING BRIEF
World equity indices
CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
(%) (%)
DJIA * 34,502.90 29.92 0.09 INDONESIA 6,899.39 -22.02 -0.32
S&P 500 * 4,436.01 48.46 1.10 JAPAN 32,287.21 276.95 0.87
NASDAQ 100 * 15,181.28 33.22 0.22 KOREA 2,537.68 32.18 1.28
FTSE 100 * 7,320.53 15.65 0.21 PHILIPPINES 6,225.78 46.15 0.75
AUSTRALIA 7,182.11 33.69 0.47 SINGAPORE 3,180.72 6.54 0.21
CHINA 3,082.24 3.84 0.12 TAIWAN 16,770.87 193.97 1.17
HONG KONG 18,212.17 366.25 2.05 THAILAND 1,557.41 8.40 0.54
INDIA 65,252.34 -180.96 -0.28 VIETNAM 1,189.39 16.83 1.44
Data as compiled on Aug 24, 2023 * Based on previous day’s closing Source: Bloomberg
Top losers (ranked by %)
NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP
(%) (RM MIL)
LAMBO GROUP BHD 0.015 -25.00 58.4 -72.73 23.1
IQZAN HOLDING BHD 0.020 -20.00 333.7 -42.86 4.4
ASIA BRANDS BHD 0.460 -17.86 4.1 -16.36 107
MQ TECHNOLOGY BHD 0.025 -16.67 444.6 -50.00 34.5
XOX NETWORKS BHD 0.025 -16.67 163 -16.67 28.4
ALAM MARITIM RESOURCES BHD 0.025 -16.67 225 0.00 38.3
HHRG BHD 0.270 -12.90 7,383.1 -43.16 232.6
SC ESTATE BUILDER BHD 0.035 -12.50 306.1 -22.22 37.6
GRAND CENTRAL ENTERPRISES 0.330 -12.00 1.0 -5.71 65.0
HONG SENG CONSOLIDATED BHD 0.050 -9.09 268,492.0 -77.27 255.4
CLASSIC SCENIC BHD 0.510 -8.93 3,724.4 -32.30 193.5
BOUSTEAD HEAVY INDUSTRIES 0.465 -8.82 98.5 12.05 115.5
SERSOL BHD 0.155 -8.82 11,873.3 -32.61 113.4
RGB INTERNATIONAL BHD 0.375 -8.54 90,996.8 108.33 577.8
PERDANA PETROLEUM BHD 0.215 -8.51 98,294.6 72.00 477.0
PAN MALAYSIA HOLDINGS BHD 0.055 -8.33 15,766.7 -21.43 51.1
TFP SOLUTIONS BHD 0.055 -8.33 77.3 -15.38 32.2
PARKSON HOLDINGS BHD 0.335 -8.22 50,934.2 148.15 384.9
PARLO BHD 0.120 -7.69 1,316.2 0.00 71.3
DIGISTAR CORP BHD 0.060 -7.69 84.6 -14.29 27.9
Data as compiled on Aug 24, 2023 Source: Bloomberg
Top losers (ranked by RM)
NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP
(%) (RM MIL)
ALLIANZ MALAYSIA BHD 16.140 -0.280 50.2 13.98 2,872.4
HEINEKEN MALAYSIA BHD 25.480 -0.240 214.2 1.11 7,697.5
HONG LEONG FINANCIAL GROUP 18.140 -0.220 79.8 -2.47 20,774.7
NESTLE MALAYSIA BHD 130.700 -0.200 91.4 -6.64 30,649.2
MALAYAN CEMENT BHD 3.850 -0.130 1,009.3 81.60 5,044.3
HARRISONS HOLDINGS MALAYSIA 8.500 -0.120 20.0 28.21 582.0
D&O GREEN TECHNOLOGIES BHD 3.680 -0.120 2,519.6 -14.02 4,556.5
PETRONAS DAGANGAN BHD 21.880 -0.120 745.8 -4.24 21,736.8
KUALA LUMPUR KEPONG BHD 22.400 -0.100 1,694.1 0.18 24,157.0
PETRONAS GAS BHD 17.040 -0.100 343.8 -0.47 33,717.6
ASIA BRANDS BHD 0.460 -0.100 4.1 -16.36 107.0
PANASONIC MANUFACTURING 21.200 -0.080 10.5 -7.42 1,287.8
KOTRA INDUSTRIES BHD 5.370 -0.080 104.9 -18.64 796.4
TROPICANA CORP BHD 1.110 -0.070 929.6 -13.28 2,515.6
YINSON HOLDINGS BHD 2.530 -0.070 903.1 4.12 7,353.9
FAR EAST HOLDINGS BHD 3.530 -0.060 2.0 -4.59 2,096.2
IMASPRO CORP BHD 5.600 -0.050 412.2 -4.27 448.0
CLASSIC SCENIC BHD 0.510 -0.050 3724.4 -32.3 193.5
HAP SENG PLANTATIONS HOLDINGS 1.900 -0.050 834.4 -2.06 1,519.4
CHIN TECK PLANTATIONS BHD 7.700 -0.050 7.0 -9.59 703.5
Data as compiled on Aug 24, 2023 Source: Bloomberg