OVER 100 CONTAINER SHIPS REROUTE AS

US WEIGHS RED SEA RESPONSE p15

T H U R S DAY, D E C E M B E R 2 1 , 2 0 2 3 t h e e d g e m a l ay s i a . c o m
ISSUE 690/2023

CEOMorningBrief HOME: Putrajaya revokes Israeli shipping company’s docking rights p2

Petronas plans 300 facilities improvement projects yearly from 2024 to 2026 p3
HR Ministry scraps Skills Passport programme, plans inaugural National HR Policy p4
Top Glove eyes turnaround by May 2024 as excess glove stocks start depleting globally p6
Perodua initiates internal assessment amid safety scandal at Daihatsu p7

Abdul Rashid takes over from Azman Mokhtar

as Tabung Haji chairman
Report on Page 5.

Malaysia ranks third in

5G speed globally ahead of
govt’s move to end SWM’s
‘effective deployment’
Report on Page 2.
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3 2 THEEDGE CEO MORNING BRIEF

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H O M E

KUALA LUMPUR (Dec 20): Malaysia’s
unconventional 5G deployment strategy has
proven effective, according to internet connec-
tivity intelligence provider Ookla Research,
which rated the nation third globally for 5G
download speed, which clocked in at 485.24
Mbps in the third quarter this year (3Q2023).
This came ahead of the government’s
move to abolish the 5G Single Wholesale
Network Model (SWM) next year, by giving
up substantial control to the next generation
network infrastructure to the private sec-
tor and build a second 5G network under
the Dual Network Model, which according
to now Communications Minister Fahmi
Fadzil, will prevent single point failure with
such redundancy.
“Malaysia’s remarkable achievement in
reaching the third spot globally for 5G down-
load speed, with a reported speed of 485.24
Mbps in Q3 2023, is particularly noteworthy.
Despite launching its nationwide 5G network
less than two years ago, Malaysia’s unconven-
tional deployment strategy has proven effec-
tive,” said Ookla in a statement datedTuesday.
During 3Q2023, Ookla said the United
Arab Emirates and South Korea stood out as
leaders in 5G performance, boasting the fast-
Malaysia ranks
third in 5G speed
globally ahead of
govt’s move to end
SWM’s ‘effective
deployment’
BY CHESTER TAY
theedgemalaysia.com
est median 5G download speeds globally at
592.01 Mbps and 507.59 Mbps, respectively.
“Our top 10 list also includes Malay-
sia, Qatar, Brazil, the Dominican Repub-
lic, Kuwait, Macau, Singapore and India.
The shift in the top 10 rankings reveals
dynamic changes, with Malaysia, the Do-
minican Republic, and India making signif-
icant strides, while Bulgaria, Saudi Arabia,
New Zealand and Bahrain dropped out of
the rankings,” it said.
Malaysia rolled out its 5G network
through a special purpose vehicle Digital
Nasional Bhd (DNB), which was given the
mandate to own and manage all 5G spec-
trum and infrastructure to ensure efficiency
in providing cheap and quality connection,
even for rural areas whose return on invest-
ment (ROI) might be low.
However, the government recently de-
cided to sell its 100% stake in the RM16
billion 5G project to five mobile network
operators (MNOs) at RM500.5 million
plus a RM1.17 billion zero-interest share-
holders’ advance, while taking over RM450
million advances the Ministry of Finance
provided to DNB.
The policy decision marks a reversal of
the SWM deployment strategy, allowing
subsequent 5G deployment to be spear-
headed by private MNOs, which had poor
track record in rolling out 4G network with-
out government intervention.
Nonetheless, Fahmi, who is amongst
the many critics against the nation’s 5G
SWM model before being appointed into
the Cabinet, recently said the government
will retain its special shares after divesting
its 100% stake in DNB.

KUALA LUMPUR (Dec 20): The gov- Immediate effect

ernment has decided to restrict and pro-
hibit the Israel-based shipping company
ZIM from docking at any Malaysian port
with immediate effect.
Prime Minister Datuk Seri Anwar
Ibrahim in a statement on Wednesday
said that the Ministry of Transport will
take immediate action to impose a per-
manent ban on ZIM’s vessels, which are
en route to Malaysia’s Westport.
“This sanction is a response to Is-
rael’s actions that disregard the basic
humanitarian principles and violate
international law through the ongo-
ing massacre and continuous cruelty
against the Palestinian people” Anwar
said.
“In addition, Malaysia has also de-
Putrajaya revokes Both of these restrictions are effective
immediately.
Israeli shipping Notably, the Cabinet had previously al-
lowed ZIM’s ships to dock in Malaysia in
company’s 2002 and 2005, but the current govern-
ment has decided to revoke those decisions.
docking rights Anwar remarked that these decisions
will not affect Malaysia’s trade activities.
Malaysia has been a staunch support-
BY LUQMAN AMIN er of the Palestinian cause and has re-
theedgemalaysia.com peatedly condemned Israel’s atrocities
and occupation of Palestinian territories.
cided to no longer accept ships flying the Malaysia does not have diplomatic
Israeli flag to dock in the country. Fur- relations with Israel and does not rec-
thermore, Malaysia has imposed a ban ognise its statehood.
on any ship that are heading to Israel
from loading cargo at Malaysian ports,”
Anwar added. Read the full story
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
Petronas plans 300 facilities improvement
projects yearly from 2024 to 2026
BY CHESTER TAY
theedgemalaysia.com
KUALA LUMPUR (Dec 20): Petroliam
Nasional Bhd (Petronas) expects to carry
out an average of 300 facilities improve-
ment plans (FIPs) yearly for the next three
years to maximise production efficiency
and sustainability of oil and gas supply,
according to the state-owned oil compa-
ny’s activity outlook report for 2024-2026.
These FIPs include rejuvenation projects,
gas turbine and gas generator change-out ac-
tivities, as well as other major maintenance
works that are crucial in eliminating bottle-
necks, maximising hub capacity and curbing
flaring activities at new onshore facilities.
Petronas will also carry out decommission-
ing activities for some 150 matured assets to
restore the area to a safe and environmentally
stable condition, while disused assets will be
assessed for potential reuse or repurposing.
The report projects that in 2024, 99 wells
will be drilled under its development, ap-
praisal and exploration drilling programme.
“Significant increase is expected for
plug and abandon activities in 2024 to
honour the commitment made by the regu-
lator [Malaysia Petroleum Management],”
said Petronas in the report.
“For the next three years, more than 25
wells are forecasted to be drilled each year
with a focus on shallow water wells in Pen-
insular Malaysia and Sarawak, and deep-
water wells in Sabah to sustain and spur
exploration growth in the country,” it added.
3 THEEDGE CEO MORNING BRIEF
H O M E
Petronas expects 45
upstream projects to be
executed over the next
three years, four central
processing platforms
to be fabricated, three
onshore facilities to
be constructed, and
1,130km of pipelines
to be fabricated
and installed.
PETRONAS
Petronas said its future is anchored on a
long-term target to sustain and grow Malaysia’s
oil and gas production of two million barrels
of oil equivalent per day by 2025 and beyond.
“This will be supported by various oil
and gas projects in the pipeline such as Ka-
sawari, Jerun, Rosmari-Marjoram and Lang
Lebah in Sarawak, Gumusut-Kakap Redev
and Belud Clusters in Sabah, and Bekok Oil
Redev,Tabu Redev and Seligi Redev in Pen-
insular Malaysia, amongst others,” it said.
According to the group, Malaysia’s pro-
duction currently stands at about 500,000
barrels per day of liquids and 7,000 million
standard cubic feet per day of gas.
Petronas is expecting 45 upstream pro-
jects to be executed over the next three
years, with four central processing plat-
forms to be fabricated, three onshore facil-
ities to be built, and 1,130km of pipelines
to be fabricated and installed.
“In this area, Petronas and the petrole-
um arrangement contractors (PACs) expect
OGSE (oil and gas service and equipment) and
industry players to provide the essential prod-
ucts and services required to drive the success
of these development projects to be on time,
on budget, on scope and on value,” it said.
In a statement on Wednesday, Petronas
said the report’s outlined forecasted activities
call for greater collaboration with the OGSE
providers to ensure energy demand is met,
while ramping up its clean energy initiatives.
“Within the next three years, Petronas
is committed to its long-term target of sus-
taining and growing Malaysia’s oil and gas
production. This is anticipated to open op-
portunities for the OGSE providers across
exploration, development, production and
decommissioning activities,” it said.
CO N TI N UES O N PAGE 4
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
KUALA LUMPUR (Dec 20): The Minis-
try of Human Resources has discontinued
the Human Resource Development Corp’s
(HRD Corp) controversial Skills Passport
programme, following allegations that the
contract was being pushed through with-
out the necessary board approvals, and its
non-compliance with required procure-
ment procedures.
Newly appointed Human Resources
Minister Steven Sim said he had instructed
HRD Corp to discontinue the programme,
which has been described in news reports
as a skills database cum search engine, af-
ter careful consideration. “This project
has been delayed for over a year and is no
longer suitable for implementation,” Sim
said in a statement on Wednesday.
The programme came under scrutiny
after a Ministry of Finance (MOF) rep-
resentative who sat on the board of HRD
Corp reportedly raised concerns about
the project’s non-compliance with pro-
curement procedures, and called for its
termination.
Datuk Rosli Yaakub, who is a deputy
secretary of governance and monitoring
under MOF’s corporate government in-
vestment companies division, raised the
concerns in a letter dated April 12 to HRD
Corp’s chairman Datuk R Rajasekharan
and chief executive Datuk Shahul Hameed
Dawood.
Among the concerns Rosli raised were
the potential financial implications of be-
tween RM53 million and RM159.47 mil-
FROM PAGE 3
“In meeting the energy demand to sus-
tain an economic growth, Petronas is cog-
nisant of the fact that the energy needs to
be delivered in an affordable and sustain-
able manner.
“The challenge lies in producing
more barrels of oils at the lowest cost
and emission possible. By outlining the
forecasted activities for the years ahead
and with it, the challenges and opportu-
nities can foster a stronger OGSE eco-
system to ride this energy trilemma to-
gether,” it added.
Petronas said the downstream business
is increasingly expanding into cleaner en-
ergy initiatives, venturing into biofuels with
the ongoing development of a greenfield
biorefinery and co-processing plant set to
begin in 2026, alongside the expansion of
liquefied natural gas bunkering and the
Petronas Iona range — a dedicated range
of automotive fluid solutions for electric
vehicles and other thermal management
application across diverse sectors.
The group’s petrochemical arm is also
making inroads into the specialty chemicals
4 THEEDGE CEO MORNING BRIEF
H O M E
HR Ministry
scraps Skills
Passport
programme, plans
inaugural National
HR Policy
BY CHOY NYEN YIAU
theedgemalaysia.com
ZAHID IZZANI/
THE EDGE
lion on HRD Corp to roll out the pro-
gramme, and that HRD Corp had already
signed a contract with Neomindz, accord-
ing to a news portal that cited the letter.
HRD Corp was said to have agreed to pay
market and is actively driving the circu-
lar economy through the construction of
Asia’s largest advanced chemical recycling
plant that converts end-of-life plastics into
pyrolysis oil to be used as chemical feed-
stock for sustainable plastic production.
“The industry should be gearing toward
adapting to the energy transition, such as
shifting toward lower-carbon endeavours,
Neomindz RM12 for each use of the Skills
Passport programme.
HRD Corp, however, slammed the al-
legations as “false and defamatory” in a
statement issued on May 7. It also said it
was “doing everything possible” to resolve
the matter quickly.
A national HR policy to enhance
worker welfare
Sim also announced that the ministry will
be drafting the country’s first National Hu-
man Resources Policy that will serve as the
guide to enhance worker welfare, and to
improve skills and productivity.
The policy also aims to prepare the la-
bour market for challenges like the ad-
vancement of digital technology, the green
economy, job mismatches, an ageing pop-
ulation, and the pursuit of decent work, in
line with the Economy Madani framework.
At the same time, Sim said he had in-
structed the ministry to implement the
Progressive Wage Policy’s pilot project as
soon as possible, after the Dewan Rakyat
passed the Progressive Wage White Paper
in November.
“The ministry will work closely with
the Ministry of Economy to implement
this pilot project and other efforts to re-
form the national labour market,” he said.
Sim also announced that he had ap-
pointed trade union activist Chee Yeeh
Ceeu as a special officer, in the hope that
the appointment will allow closer involve-
ment of workers in policymaking.
pursuing net zero emissions, and explor-
ing renewable energy sources,” said Petro-
nas vice president of group procurement
Freida Amat.
“Through cross-industry experienc-
es, insights and knowledge, we believe
co-creation can upskill our capabilities
and skills, which will chart new frontiers
for the OGSE industry,” she added.
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3 5 THEEDGE CEO MORNING BRIEF

H O M E

Abdul Rashid takes over from Azman

Mokhtar as Tabung Haji chairman
KUALA LUMPUR (Dec 20): Lembaga
Tabung Haji has announced the appointment
of Tan Sri Abdul Rashid Hussain as the new
chairman of the pilgrim fund, taking over from
Tan Sri Azman Mokhtar, who has served the
position for two years from Dec 20, 2021.
Abdul Rashid’s appointment is effective
Wednesday. Abdul Rashid, who is known as
co-founder of Rashid Hussain Securities and
the RHB Group, was also one of six members
of the Tabung Haji Royal Commission of In-
quiry (TH RCI) set up in 2022 to review the
fund’s operations in the 2014-2020 period.
“TH welcomes the appointment and is
grateful to receive a respected and experienced
corporate figure who was also the founder of
RHB Group, one of the biggest banking groups
in the country,” said TH Group MD and CEO
Syed Hamadah Syed Othman in a statement.
“We are confident that our collective ef-
fort to strengthen TH will continue with his
experience and leadership,” he added.
Abdul Rashid established Rashid Hussain
Securities in 1983, and built it to become
RHB Group. He also served on the board of
Khazanah Nasional Bhd from 1994 to 1998,
and was chairman of its executive committee
in the period.
In 1995 to 2000, Abdul Rashid served as
chairman of Putrajaya Holdings Bhd.
In expressing gratitude to Azman,TH said
that the former chairman has contributed
towards strengthening the fund’s financial
position, where total deposits grew almost
7% from Jan 1, 2022 to Nov 30, 2023.
Other recent changes at the helm in GLCs
Abdul Rashid’s appointment follows other
recent changes at the helm in several govern-
ment-linked companies (GLCs) and agencies.
BY ADAM AZIZ
theedgemalaysia.com
This includes the Inland Revenue Board,
Khazanah Nasional Bhd-linked Tenaga Na-
sional Bhd, as well as UMW Holdings Bhd,
which was recently acquired by Sime Darby
Bhd from Permodalan Nasional Bhd.
One appointment that is pending is the
CEO position of the Employees Provident
Fund, following Prime Minister Datuk Seri
Anwar Ibrahim’s decision to appoint Datuk
Seri Amir Hamzah Azizan as Minister of Fi-
nance II as part of the Cabinet reshuffling.
Another is the CEO of government-linked
5G infrastructure outfit Digital Nasional
Bhd, following the end of Augustus Ralph
Marshall’s contract in March.
The unity government, since its formation
in November last year, also saw several GLC
heads retaining their positions.
This includes Petronas president and CEO
Tan Sri Tengku Muhammad Taufik Tengku
Aziz and Khazanah-linked CIMB Group Hold-
ings Bhd CEO Datuk Abdul Rahman Ahmad,
whose contracts were extended in June; as well
as MRT Corp Bhd CEO Datuk Mohd Zarif
Hashim in November.
Tabung Haji in the spotlight following
mismanagement
TH, a fund that was formed to help generate
savings and subsidise haj costs for pilgrims,
has been in the spotlight since 2018 follow-
ing mismanagement that led to its liabilities
exceeding its assets, rendering it unable to
provide profit distribution to its depositors.
This prompted a restructuring that saw
a special purpose vehicle (SPV) formed by
the Pakatan Harapan government to take
over RM9.63 billion worth of underper-
forming assets from the fund, in exchange
for a RM19.6 billion sukuk from the SPV
Urusharta Jamaah Sdn Bhd and RM300 mil-
lion cash to shore up its financial position.
In September, Prime Minister Datuk Seri
Anwar Ibrahim said the government will in-
itiate discussions to return the assets held by
Urusharta Jamaah back to TH “once TH is
managed well and secure”.
Urusharta Jamaah’s audited financial
statement showed that it held RM9.06 bil-
lion in assets, against RM22.42 billion in
liabilities as at end-2022.
According to the Auditor General’s Report
on the federal government financial statement
2022, Urusharta Jamaah has redeemed RM200
million worth of sukuk in January this year.
In February, Minister in the Prime Min-
ister’s Department (Religion) Datuk Mohd
Na’im Mokhtar was reported as saying that
the Cabinet will make a decision on the TH
RCI report.
The TH RCI, which was initiated in Jan-
uary 2022 by the Perikatan Nasional govern-
ment, has been completed and its report has
been presented to both the Yang di-Pertuan
Agong and the government.
This year, TH has kept its annual profit
distribution for the year 2022 at 3.1%, un-
changed for the third straight year, although
total full-year distribution rose to RM2.65
billion for 2022, from RM2.46 billion a year
ago.The pilgrim fund recorded gross income
of RM3.85 billion in 2022, compared with
RM3.72 billion a year ago.
Read also: About Abdul Rashid, Tabung
Haji’s new chairman

Top changes in government-linked entities since Dec 12 Cabinet reshuffle

Government-linked companies Position Incumbent Successor Note
Tenaga Nasional Bhd President Datuk Seri Baharin Din Datuk Megat Jalaludin Effective March 1, 2024
& CEO Megat Hassan
UMW Holdings Bhd President Datuk Seri Ahmad Fuaad Mustamir Mohamad Effective Dec 13, 2023
& group CEO Mohd Kenali
Petronas Chemical Group Bhd MD & CEO Mohd Yusri Md Yusof Mazuin Ismail Effective Jan 1, 2024
Institut Jantung Negara Sdn Bhd Chairman Datuk Dr Aizai Azan Abdul Rahman Dr Noor Hisham Effective Dec 1, 2023

Government-linked investment
companies Position Incumbent Successor Note
Employee Provident Fund CEO Datuk Seri Amir Hamzah Azizan - Amir Hamzah appointed as FM II
Lembaga Tabung Haji Chairman Tan Sri Azman Mokhtar Tan Sri Abdul Rashid Hussain Effective Dec 20, 2023

Government agencies Position Incumbent Successor Note

Inland Revenue Board CEO Datuk Seri Dr Mohd Nizom Sairi Datuk Abu Tariq Jamaluddin Agency under Ministry of Finance
Lembaga Pembangunan CEO - Datuk Haslina Abdul Hamid Agency under Ministry of
Langkawi (LADA) Plantation and Commodities
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
KUALA LUMPUR (Dec 20): Top Glove
Corp Bhd is anticipating a return to the
black as early as May next year, lifted by
stronger demand for rubber gloves and
rising prices, following the depletion of
excess supplies built up globally since the
pandemic.
This is evident in a pick-up in sales
orders over recent months, according to
Top Glove managing director Lim Cheong
Guan.The group has already seen a month-
on-month jump in orders of about 30%-
40% for the month of December, a period
that usually sees slower orders.
“We have brighter days ahead due to the
increase in the demand for gloves — the
uptrend in glove orders indicates demand
is picking up to fill the vacuum from the
depleting excess stocks,” Cheong Guan told
reporters during the group’s briefing on its
first quarter results on Wednesday (Dec 20).
“Hopefully in the next two quarters, or
by end-FY2024, we can breakeven or be
in a profitable position,” he said.
The world’s largest glove maker extend-
ed its loss-making streak with its sixth con-
secutive quarter in the red, as it reported
a net loss of RM57.17 million for its first
quarter ended Nov 30, 2023. But it’s a
much smaller loss than the RM168.24 mil-
lion it reported a year ago, which the group
attributed to improved operational, quality
and cost optimisation efforts.
Besides depleting supply, Cheong Guan
said glove demand has risen due to an
overall increase in hygiene and health
awareness.
“This surge in demand, I would not link
it to the recent Covid situation because the
Top Glove’s 1Q net loss narrows to RM57.71 mil
KUALA LUMPUR (Dec 20):Top Glove
Corp Bhd net loss for the first quarter
ended Nov 30, 2023 (1QFY2024) nar-
rowed to RM57.71 million from a net
loss RM168.24 million a year earlier
(1QFY2023), on the back of improved
operational, quality and cost optimisa-
tion efforts.
In a bourse filing on Wednesday, the
world’s largest glove maker said revenue
for the quarter dipped to RM493.46 mil-
lion, from RM632.53 million.
On a quarter-on-quarter basis,
the company said it also saw an im-
provement in its 1QFY2024 net loss
of RM47 million, representing a 90%
reduction from its 4QFY2023 net loss,
which included a one-off impairment
of RM392 million.
Loss per share was 0.72 sen compared
to loss per share of 2.10 sen previously.
6 THEEDGE CEO MORNING BRIEF
H O M E
Top Glove eyes
turnaround by
May 2024 as excess
glove stocks start
depleting globally
BY IZZUL IKRAM & CHERYL TAN
theedgemalaysia.com
surge has been happening over the past
one or two months. Our current orders are
already on a rising trend,” he said, adding
the group has yet to feel any impact from
the current Covid-19 situation.
Glove players’ share prices have been
climbing amid active trades in recent days
as a surge in Covid-19 cases spurred in-
vestors’ interest in rubber glove counters.
Top Glove’s share price jumped over 12%
on Monday to touch RM1, from 89 sen
last Friday.
On Wednesday, the stock has pared most
of the gains it made this week to close at
90.5 sen — valuing the glove maker at
RM7.43 billion.
Malaysian players poised to meet any
demand surge
According to Top Glove executive chair-
man Tan Sri Lim Wee Chai, Chinese glove
makers, which have been giving glove mak-
ers here a run for their money as they sell
their products at cheaper prices, are ill-
BY SURIN MURUGIAH
theedgemalaysia.com
Top Glove did not declare any dividend.
Reviewing its performance, Top Glove
said the uptick in sales volume, which led to
increased utilisation and efficiencies, also had
a positive effect on the bottom line.
Top Glove managing director Lim
Cheong Guan said the first quarter re-
sult was testament to the effectiveness of
Top Glove’s ongoing quality and cost op-
timisation, and operations enhancement
measures in its turnaround plan.
“With glove orders resuming, we be-
lieve this is also indicative of the market
rebounding, and we are hopeful of making
a sustained recovery in the coming quar-
ters,” he said.
Top Glove said it is also working closely
with stakeholders to ensure it meets new
equipped to absorb any surge in demand
in the near term, as they are about maxed
out, with their factories operating at a 90%
utilisation rate.
Hence, Wee Chai does not expect the
Chinese competitors to ramp up their
production capacity to meet any jump in
demand, as they are already running at
break-even point or even at a loss just to
pull the average selling prices of their gloves
down by only about US$2 (RM9.32) per
1,000 pieces.
Malaysian players, on the other hand,
can easily raise their utilisation rate, which
averages about 50% now. Top Glove, with
its massive annual production capacity of
60 billion pieces, is running at 30% utilisa-
tion rate. So, Wee Chai expects customers
will begin to bring more orders to Malaysia.
“We need sales volume to increase our
utilisation, which will also make our pro-
duction costs more efficient,” Cheong
Guan added.
At the same time, Wee Chai noted that
global customers, especially those from the
US, are seeking to diversify their sourcing
of gloves due to the ongoing geopolitical
issues between the US and China.
Incidents of Chinese glove shipments
failing US authorities’ inspections is anoth-
er factor as to why customers are expected
to return to source their gloves from Ma-
laysia, according to Wee Chai.
So, the stage is set for local players to
compete for the expected increase in glove
demand, Wee Chai said.
Top Glove, however, expects its domes-
tic counterparts to be more “rational” in
pricing, Chong Guan added.
obligations under the European Union
Deforestation Regulation (EUDR),
which will apply starting Dec 30, 2024.
It said that under this regulation, com-
panies trading in commodities such as nat-
ural rubber and products derived from nat-
ural rubber, are required to conduct due
diligence on their supply chain to ensure
the goods do not result from recent de-
forestation, forest degradation, or breach-
es of local environmental and social laws.
On its outlook, Lim said that going
forward, Top Glove’s focus will remain
on bolstering its core glove business,
through quality and cost enhancement
initiatives, to be well positioned to main-
tain the upswing in performance and
expedite recovery.
At midday break on Wednesday, Top
Glove added 0.53% or 0.5 sen to 94.5
sen, with 55.29 million shares done.
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
KUALA LUMPUR (Dec 20): Perusahaan
Otomobil Kedua Sdn Bhd (Perodua) said
it is working on a detailed internal assess-
ment of its cars and operations after its
Japanese partner Daihatsu Motor Co Ltd
suspended all shipments of its models both
in Japan and overseas following an investi-
gation which found “procedural irregular-
ities” in its models and engines.
Perodua president and chief executive
officer Datuk Seri Zainal Abidin Ahmad
said the matter has even been brought up
to Malaysian authorities.
“We are doing a detailed assessment on
the matter and are currently in discussion
with Malaysian authorities as to the impact
of this development on our vehicles,” he
said in a statement on Wednesday.
“We sincerely apologise to our valued
customers and the general public for any
alarm this announcement may bring. Our
intent is to reach out and assure our val-
ued customers.
“We will share the outcome of this dis-
cussion with the public in due course,”
Zainal Abidin added.
Daihatsu in April 2023 announced that
there were “procedural irregularities” when
conducting safety tests on its vehicles in Ja-
pan. Following the announcement, Daihat-
su commissioned a third-party investigative
committee consisting of lawyers and technical
personnel to further investigate the matter.
On Wednesday, Daihatsu said it received
the results of the investigation, confirming
that there were in fact 174 new cases in
25 test items, in addition to the door trim
irregularity in April and the pole side col-
lision test irregularity in May.
KUALA LUMPUR (Dec 20): RAM Rat-
ings expects Malaysia’s economic momen-
tum to steadily improve heading into 2024,
on the back of the fiscal consolidation by
the government, as well as the potential
turnaround in external demand and re-
silient domestic demand.
In a statement on Wednesday, RAM
Ratings stated that it expects the growth
to reach 4.5%–5.5% in 2024, from an es-
timated 4.0% in 2023.
Meanwhile, it projected the fiscal deficit
to clock in at 4.2% of the gross domestic
product (GDP) in 2024, compared to the
5% estimated for 2023, reflecting the fis-
cal consolidation path of the government.
RAM Ratings stated that the narrower
deficit will mainly be driven by a lower
subsidy bill, better management of oth-
er operating expenditures, and higher tax
revenue collections from an upside in eco-
nomic conditions next year.
However, with a need to fund critical
development projects, government debt
7 TheEdge CEO morning brief
h o m e
Perodua
initiates internal
assessment amid
safety scandal
at Daihatsu
by Emir Zainul
theedgemalaysia.com
The investigation found irregularities
in 64 models and three engines, including
those that had already been discontinued.
The models included both Daihatsu brand
vehicles and models supplied as original
equipment manufacturer (OEM) mod-
els to Toyota Motor Corp, Mazda Motor
Corp, and Subaru Corp.
For instance, at the final stage of the in-
vestigation, Daihatsu said that tests on the
airbags of Daihatsu Move/Subaru Stella,
Daihatsu Cast/Toyota Pixis Joy, and Dai-
hatsu Gran Max/Toyota Town Ace/Mazda
Bongo revealed the irregularity that the
airbags deployment computer was not the
same as that of mass-produced products.
Besides that, it was determined that
there is a possibility that the “safety per-
formance related to occupant safety per-
formance (door unlocking)” of the Cast/
Pixis Joy in side collision tests does not
satisfy the regulations.
“At this time, we are not aware of any
information on accidents related to this
RAM Ratings
sees stronger
economic
momentum for
Malaysia in 2024
by Lee Ming Hui
theedgemalaysia.com
sam fong/The Edge
incident, but we are conducting thorough
technical verification and investigating the
cause, and will promptly take necessary
actions,” Daihatsu said.
Furthermore, Daihatsu acknowledged
that its management was responsible for
treating the safety certification process
lightly and for creating an environment
where room for such acts existed.
“We recognise the extreme gravity of
this situation, which shakes the very foun-
dation of our company as an automobile
manufacturer,” it said.
Going forward, Daihatsu said it will im-
plement thorough measures to prevent oc-
currences of similar events in the future,
based on the recommendations of the inde-
pendent third-party investigative committee.
“We will not only review and revise cer-
tification operations, but we will also make
sweeping reforms to our corporate culture
to make compliance the highest priority,”
it stressed.
Since its establishment, Perodua has part-
nered with Daihatsu, which holds a 25%
stake in the company, whereby the Japa-
nese carmaker provides the designs and
main components for Perodua’s cars from
the engines to transmissions. Essentially, all
Perodua cars have Daihatsu technology.
While all of its cars are derived from
models in Daihatsu’s lineup, Perodua has
injected more of its design into its cars in
recent years.
See also story on Page 19: Toyota vows
reform after affiliate Daihatsu caught in
safety scandal
will remain relatively sticky at RM1.3
trillion in 2024 (62.7% of GDP), while
debt servicing will not be insignificant at
16.1% of total projected revenue in 2024,
it added.
It also noted that the risks on the hori-
zon for Malaysia’s growth will hinge largely
on the global economy successfully achiev-
ing a soft landing and avoiding further
escalation of geopolitical conflicts.
“A spike in global food and commodity
prices could pressure domestic demand,
as will unintended price ripple effects of
a poorly executed retargeting of RON95
subsidies in 2H2024,” it said.
Besides, it stated that the leading in-
dicators point to signs that global trade
and semiconductor demand have reached
their nadir in 2023.
Hence, coupled with resilient domestic
demand which is supported by the benign
inflation and interest rates, the growth mo-
mentum can be sustained, it said in its
Economic Outlook 2024 report.
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
Maxis inks
deal with TM
to extend high-
speed broadband
services until 2029
by Anis Hazim
theedgemalaysia.com
KUALA LUMPUR (Dec 20): Maxis Bhd
has signed an amendment agreement with
Telekom Malaysia Bhd (TM) to extend the
high-speed broadband (HSBB) premium
service agreement until June 30, 2029.
Maxis via its broadband arm, Maxis
Broadband Sdn Bhd, inked the agreement
with TM’s wholly-owned unit TM Tech-
nology Services Sdn Bhd (TMT), allowing
Maxis Broadband to procure the premi-
um service from TMT, enabling the telco
to reach out to more premise passes for
HSBB across the country.
In a filing on Wednesday, TM said the
agreement is a modification of the exist-
ing agreement dated Feb 8, 2019, which
will see an improvement in similar services
currently provided to Maxis Broadband.
The amendment agreement will see
Maxis Broadband becoming TMT’s pre-
mium customer for the HSBB premi-
um service with enhanced features and
functionalities from basic HSBB access
services.
TMT will provide the HSBB premium
service to Maxis Broadband, which the tel-
co will pay for based on agreed parameters
as stipulated in the agreement.
The agreement will commence from
the signing of the amendment agreement
until June 30, 2029, with an option to ex-
tend by both parties.
Maxis Broadband and TMT initially
signed the agreement back in 2010 for up
to ten years. Under the 10-year agreement,
Maxis Broadband has been provided ac-
cess to TM’s HSBB infrastructure, cover-
ing last-mile access to homes.
Meanwhile, TM said that the amend-
ment agreement demonstrates its shared
commitment to ensuring seamless, stable
and always-on connectivity for Malay-
sians and remains essential in line with
the government’s Malaysia digital econ-
omy blueprint.
At noon close on Wednesday, shares
in Maxis were up four sen or 1.04% to
RM3.90, valuing the group at RM30.55
billion, while TM’s shares were six sen or
1.10% higher at RM5.50, with a market
capitalisation of RM21.10 billion.
8 TheEdge CEO morning brief
h o m e
LTAT extends
offer closing date
to take Boustead
Plantation
private
by Chester Tay
theedgemalaysia.com
KUALA LUMPUR (Dec 20): The
Armed Forces Fund Board (LTAT) is
extending the closing date for its RM1.55
per share offer to take Boustead Plan-
tations Bhd private to Jan 5, 2024, two
weeks later than the original deadline of
Dec 22, which falls on Friday.
The move came after LTAT accu-
mulated 88.62% of Boustead Planta-
tions’ total issued shares as at Wednes-
day, according to the plantation outfit’s
stock exchange filing.
Police opened
62 probe papers
on cheating
involving three
investment firms
Bernama
KUALA LUMPUR (Dec 20): Police have
received 547 reports on cheating involving
three investment companies and opened 62
investigation papers on these cases under
Section 420 of the Penal Code.
Bukit Aman Commercial Crime Investi-
gation Department (CCID) director Datuk
Seri Ramli Mohamed Yoosuf said of this
figure, 42 investigation papers were still un-
der investigative action, 14 cases had been
charged, four were classified as no further
action and two were still under considera-
tion by the Attorney General’s Chambers.
“All police reports found to have ele-
ments of cheating or criminal breach of
trust will lead to investigation papers being
opened and investigated under sections re-
lated to the particular crime under the Penal
Code,” he said in a statement onWednesday.
Ramli said most cases involving invest-
With a public shareholding spread
of just 11.38% now, Boustead Planta-
tions also said it is no longer in com-
pliance with the 25% minimum spread
requirement.
However, LTAT will not be taking
any steps to rectify this shortfall as the
fund does not intend to maintain the
group’s listing status, it said.
Once LTAT accumulates 90% or
more of Boustead Plantations’ shares,
Bursa Securities will suspend the trad-
ing of Boustead Plantations’ shares five
days after the closing date of the offer.
Independent adviser Malacca Secu-
rities had said earlier this month that
LTAT’s offer is “not fair” but “reason-
able”, and recommended sharehold-
ers of Boustead Plantations to accept
the offer.
LTAT’s takeover offer came after
Kuala Lumpur Kepong Bhd’s RM1.15
billion takeover bid for Boustead Plan-
tations fell through in October.
Shares of Boustead Plantations
closed unchanged at RM1.55, valu-
ing it at RM3.47 billion.
bernama
Bukit Aman Commercial Crime Investigation
Department (CCID) director Datuk Seri Ramli
Mohamed Yoosuf
ment crime concerned other legal provi-
sions, including the Capital Markets and
Services Act 2007 (Act 671), Financial
Services Act 2013 (Act 758) and Interest
Schemes Act 2016 (Act 778).
“When a police report is received,
CCID will advise the complainant to refer
their report to the relevant agency,” he said.
He was commenting on the case of
some 500 scam victims lodging reports
with the National Anti-Financial Crime
Centre (NFCC) on Tuesday after alleging
that the authorities had not taken action
against the three investment companies.
Ramli said non-governmental organ-
isations fighting for these victims should
realise that the authorities including the
police did not take cheating cases lightly.
He advised the public to be wary of in-
vestment schemes offering unusually high
returns, especially those run by unregis-
tered companies.
T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3 9 THEEDGE CEO MORNING BRIEF
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
KUALA LUMPUR (Dec 20): Infrastruc-
ture utilities engineering services provid-
er Jati Tinggi Group Bhd opened at 30.5
sen on Bursa Malaysia’s ACE market on
Wednesday, a 12.96% or 3.5 sen premium
to its initial public offering price of 27 sen.
The stock climbed as much as seven
sen or 25.93% to 34 sen, before paring
some gains to close at 31 sen, still up four
sen or 14.8% from its IPO price — with a
market capitalisation of RM121.46 million.
It saw 141.81 million shares traded,
making it the third most actively traded
stock on Bursa Malaysia. Prior to listing,
the group noted that its initial public of-
fering (IPO) had been oversubscribed by
the Malaysian public by 16.11 times.
Jati Tinggi is involved in the provision
of underground and overhead utility engi-
neering services and solutions, engineering,
procurement, construction and commis-
sioning of electricity substations (EPCC),
as well as the trading of substation equip-
ment and street lighting.
The group’s major customers are main-
ly the main contractors appointed by Tena-
ga Nasional Bhd, who are involved in elec-
tricity supply projects.
Jati Tinggi recorded a profit after tax of
RM9.13 million for the financial year ended
Nov 30, 2022 (FY2022), up 26.15% from
RM7.24 million in the previous year, as reve-
nue jumped 143% to RM234.61 million from
RM96.41 million in FY2021. For the third
quarter ended Aug 31, 2023 (3QFY2023),
the group registered a net profit of RM1.41
million, on revenue of RM33.05 million.
KUALA LUMPUR (Dec 20):VS Industry
Bhd’s net profit fell 19.31% to RM48.98
million for the first quarter ended Oct 31,
2023 (1QFY2024), from RM60.71 million
in the previous year’s corresponding quar-
ter, due to lower orders from key customers
in Malaysia, China and Indonesia, which
affected the group’s overall utilisation rate
of production capacity.
Earnings per share decreased to 1.27
sen from 1.58 sen in 1QFY2023. Reve-
nue for the quarter declined by 10.91%
to RM1.15 billion from RM1.29 billion,
a filing by the electronics manufactur-
ing services (EMS) provider showed on
Wednesday.
Despite the lower quarterly earnings,VS
Industry declared a first interim dividend
of 0.3 sen per share, payable on March
8, 2024.
As at end-October, the group has a low
net gearing of 0.09 times, backed by net
assets of 58 sen per share and gross cash
holdings of RM699.6 million.
VS Industry managing director Datuk
SY Gan commented that the group’s busi-
10 THEEDGE CEO MORNING BRIEF
H O M E
Jati Tinggi gains
bank borrowings, RM3.5 million for es-
timated listing expenses and RM200,000
nearly 15% in
for capital expenditure.
Rakuten Trade has a “buy” rating on Jati
ACE Market
Tinggi with a target price of 38 sen, based
on 14 times its forecast earnings per share
debut
(EPS) of 2.7 sen for FY2024.
Based on its existing sizable orderbook,
potential to be a key solutions provider in
the National Energy Transition Roadm-
BY SYAFIQAH SALIM ap (NETR), and gradual evolution into
theedgemalaysia.com a main contractor that allows it to ten-
der for larger projects and improve on its
profitability, Rakuten expects Jati Tinggi to
register core net earnings of RM5.6 mil-
Jati Tinggi Group Bhd lion and RM10.8 million for FY2023 and
Vol (mil) RM FY2024, respectively.
25 35 Meanwhile, Public Investment Bank
Bhd derived a fair value of 35 sen for the
20 stock, which also pegged it at 14 times its
31 sen forecast EPS of 2.5 sen for the group for
15 FY2024. This represents a 20% discount
30.5 sen 30 to its peer MN Holdings Bhd, which has
10 a PE multiple of 17.6 times.
The research house said Jati Tinggi’s
IPO price: 27 sen earnings growth trajectory will hinge on
50
securing more large-scale projects, which
0
helps to position the group favourably in
25
9am 5pm the course of tendering for new projects
Dec 20, 2023 as the main contractor.
Source: Bloomberg
TA Securities Holdings Bhd is the prin-
cipal adviser, sponsor, underwriter, and
placement agent for the IPO exercise.
The group raised RM18.04 million
from its IPO, of which RM7.34 million has
been allocated for general working capital, Read also: Rakuten Trade values ACE
followed by RM7 million for repayment of Market-bound Jati Tinggi at 38 sen
Lower orders
gearing and healthy cash flow, which would
strengthen our agility to navigate any un-
from key
foreseen issues,” he said in a statement.
Regarding external demand, consum-
customers weigh
er spending has shown signs of “cooling”
due to the sustained environment of high
on VS Industry’s
interest rates. This could potentially affect
demand for the group’s key customers’
1Q earnings
products, according to Gan.
“On a positive note, the planned
launches of several new models by cer-
tain customers of ours should serve to sus-
BY SYAFIQAH SALIM tain market interest in the current financial
theedgemalaysia.com year. All in all, the board opines that the
financial performance of the group for the
ness environment is expected to remain remaining quarters [will] be satisfactory,”
challenging, as the economic landscape he added.
continues to exert pressure on its opera- At Wednesday’s closing bell, shares of
tional costs following increases in labour, VS Industry were half a sen or 0.60% low-
utilities and financing expenses. er at 82.5 sen, giving it a market value
“In this regard, management continues of RM3.2 billion, with some 5.57 million
to adopt prudence in ensuring a lean and shares exchange hands.
efficient operating structure to mitigate the
impact of heightened costs on profitability.
Furthermore, our operations are support- Read also: Teck Guan’s 3Q net profit
ed by our lean balance sheet with low net drops 84% amid lower operating margin
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
KUALA LUMPUR (Dec 20): Hong Leong
Investment Bank (HLIB) Bhd has upgrad-
ed the construction sector to “overweight”
(from “neutral”) as the research house ex-
pects public project contract flows to boost
contract awards beyond the current level of
about RM20 billion.
In a note on Wednesday, the research
house highlighted that infrastructure pro-
ject rollouts fell below expectations in 2023,
as anticipated ones failed to materialise in
part due to re-tabling of Budget 2023 and
mid-year state elections.
Despite this, HLIB believes that the
recent appointment of Datuk Seri Amir
Hamzah as finance minister II is poised to
alleviate project pipeline bottlenecks. Addi-
tionally, the ongoing subsidy rationalisation
is expected to incrementally enhance fis-
cal space as potential savings are redirected
towards long-term infrastructure projects.
“...We are expecting a debottlenecking
of [the] public project pipeline while private
jobs should sustain. Amidst this prospect of
an extended contract recovery upcycle, sec-
tor valuations are still undemanding trading
at P/E & P/B multiples of 12.7x and 0.7x
respectively,” said HLIB.
HLIB sees domestic
healthcare sector
thriving in 2024,
names KPJ as top pick
BY LUQMAN AMIN
theedgemalaysia.com
KUALA LUMPUR (Dec 20): The Malaysian
healthcare sector is poised for sustained growth
in 2024, bolstered by the Ministry of Health’s
(MOH) enlarged budget allocation and the ro-
bust surge in medical tourism, supported by
a strategic focus on brownfield expansion by
private hospitals, according to Hong Leong In-
vestment Bank (HLIB) Research.
In a sector outlook report on Wednesday,
HLIB Research maintained its “overweight”
call on the healthcare sector for 2024, as it fa-
vours resilient growth drivers.
The research house named KPJ Healthcare
Bhd as its top pick with a “buy” call and a target
price (TP) of RM1.57 due to its robust pres-
ence in Malaysia, positioning it to capitalise on
the nation’s growing healthcare demand and
expanding medical tourism industry.
HLIB Research noted that the healthcare
industry stands to benefit from the MOH’s
increased budget allocation. For 2024, the al-
location has been raised to RM41.2 billion,
marking a 13.5% increase from the RM36.3
billion allocated in 2023.
11 THEEDGE CEO MORNING BRIEF
H O M E
HLIB upgrades
construction to
‘overweight’,
Gamuda and
SunCon the
top picks
BY SYAFIQAH SALIM
theedgemalaysia.com
Based on the Budget 2024 announcement,
the government intends to roll out several
big ticket projects such as Pan Borneo Sabah
Phase 1B with a value of RM15.7 billion, flood
mitigation packages worth RM11.8 billion,
Penang LRT (RM10 billion), Sabah-Sarawak
Link Road (RM7.4 billion) and reinstatement
of LRT3 (RM4.7 billion).
“We also expect further developments on
civil packages for the MRT3 (tender validity
extended to March-24) while there is poten-
The enlarged budget carries positive im-
plications for healthcare counters within the
research house’s coverage, including DKSH
Holdings (Malaysia) Bhd (“buy”;TP: RM5.50),
UMediC Group Bhd (“buy”;TP:RM1.00), and
IHH Healthcare Bhd (“buy”; TP: RM7.62), as
they are involved in the distribution, manufac-
turing, and provision of healthcare products
and services to the public sector.
The research house added that another cata-
lyst for the healthcare sector is the ongoing growth
in medical tourism, which is expected to benefit
from the reopening of international borders and
notably the visa-free travel for Chinese nationals.
“Malaysia is on track to potentially achieve
RM2 billion in medical tourism revenue in
2023, surpassing its initial targeted timeline
of 2024 by a year,” HLIB Research added.
According to the research house, KPJ
Healthcare and IHH Healthcare are anticipated
to benefit the most from this trend, given their
strategic locations and capabilities.
In addition, the research house offered an
optimistic outlook for hospital operators who
are shifting their focus towards prioritising
brownfield projects and expanding their ex-
isting hospital capacity.
HLIB Research said KPJ Healthcare aims
to add 368 beds (a 9.9% increase) in 2024,
bringing its total to 4,101 beds, while IHH
Healthcare plans to add 3,800 new beds by
2028, representing a significant 33% increase
in capacity across its key operating markets.
As for UMediC, its upcoming expansion
is set to double its manufacturing capacity to
600,000 bottles per month.
tial for more news flow from other prospec-
tive projects like KL-SG HSR and Johor LRT
(RM20 billion). Tangible developments for
[the] Special Economic Zone and Special Fi-
nancial Zone in Johor could also generate more
construction opportunities, in particular the
former given its greenfield status,” said HLIB.
“…. We see 2024 as an opportune time
to start building — factoring in implemen-
tation time lags, the full scale of economic
multiplier effects will be felt before the next
GE [general election],” it added.
The research house said Gamuda Bhd and
Sunway Construction Group Bhd (SunCon)
remain its top picks as both have contract levers
besides the MRT3 project that could lead to
a more sustainable growth phase in the order
book. It assigned “buy” calls for Gamuda and
SunCon with target prices of RM5.15 (Gamu-
da) and RM2.16 (SunCon).
Gamuda, which has risen over 21% year-
to-date, was traded unchanged at RM4.61
on Wednesday. At this price, the group is
valued at RM12.53 billion.
SunCon’s share price has increased over
23% since the start of the year. It closed at
RM1.96 on Tuesday, with a market capital-
isation of RM2.53 billion.
TA Securities
upgrades Chin Well
on more positive
outlook
BY SURIN MURUGIAH
theedgemalaysia.com
KUALA LUMPUR (Dec 20): TA Secu-
rities has upgraded Chin Well Holdings
Berhad to “buy” at RM1.27 with an un-
changed target price (TP) of RM1.41 fol-
lowing the recent weakness in share price.
In a note on Wednesday, the research
house said it is more upbeat about Chin
Well’s outlook, underpinned by the gradu-
al demand recovery in the European mar-
ket as well as increasing sales from the US
market thanks to trade diversion.
“On top of that, sales orders from the US
market remain healthy due to local infra-
structure spending as well as trade diversion.
“On the other hand, the transitional
period for Carbon Border Adjustment
Mechanism (CBAM) has finally kicked-
off on 1 Oct 2023,” it said.
TA Securities said Chin Well’s man-
agement believes that it could be a game
changer for the industry given that smaller
steel players might get phased out due to
stringent requirements and high compli-
ance costs.
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
AmBank Group denies chairman’s
link to ARJ Group
KUALA LUMPUR (Dec 20): AmBank
Group has denied any affiliation or
association between its chairman emeritus
and honorary adviser Tan Sri Azman
Hashim and ARJ Group Management &
Services Asia. The banking group said that
it had come to the group’s attention that
Azman has been linked with ARJ Group,
which listed him as one of its directors.
“We wish to clarify and confirm that Tan
Sri Azman Hashim has no affiliation or
association whatsoever with ARJ Group
Management & Services Asia. “We kindly
request the public and our stakeholders
to exercise caution and verify information
regarding any association purportedly
involving Tan Sri Azman Hashim with
due diligence,” AmBank Group said in
a statement. According to its website,
Azman was appointed as chairman
EON.COM.MY
Proton receives over 4,000 bookings
for new S70 sedan
KUCHING (Dec 20): National carmaker
Proton Holdings Bhd has received over
4,000 bookings for its newly launched S70
compact sedan so far. Proton deputy chief
executive officer Roslan Abdullah said the
overwhelming support reflects the trust and
excitement customers have for this latest
addition. “After establishing leadership
in the sports utility vehicle segment with
models like the Proton X50, X70 and X90,
we now bring our technological prowess to
a new family sedan. “Last week, the Proton
S70 made its debut in Sabah, and now, we
are thrilled to extend the excitement to the
beautiful region of Sarawak. “Today marks
a special occasion as we introduce a new
era of driving innovation to this dynamic
locale,” he said in his speech during the
Proton S70 Sarawak launch event here on
Wednesday. On Nov 28, Proton launched the
S70 compact sedan and was targeting to sell
over 3,000 units a month for the first year.
Chief executive officer Li Chunrong said the
1.5-litre turbo S70 comes in four variants,
namely the Executive, Premium, Flagship and
Flagship X. The S70 will be delivered early
next year, with the Premium and Flagship
variants being the most popular. — Bernama
12 THEEDGE CEO MORNING BRIEF
H O M E
NEWS IN BRIEF
emeritus and honorary adviser of AmBank
Group April 30, 2022 after stepping
down as chairman on April 29, 2022. His
contribution, experience and insights led
to AMMB Holdings Bhd acknowledging
and appointing him to that position. Shares
in AmBank Holdings ended the day four
sen or 1% lower at RM4.03, giving it a
market capitalisation of RM13.4 billion.
— by Luqman Amin
Sunzen to acquire remaining 30%
stakes in two subsidiaries for RM24 mil
KUALA LUMPUR (Dec 20): Sunzen Biotech
Bhd has entered into two conditional share
sale agreements to acquire the remaining
30% stakes each in its subsidiaries Ecolite
Biotech Manufacturing Sdn Bhd for RM18
million and Yanming Resources Sdn Bhd for
RM6 million. The company told the stock
exchange it has entered into a conditional
share sale agreement with Koh Lee Fong,
Lim Wee Chun, Fam Jian Yap and G Five
Holdings Ltd for the acquisition of 2.25
million ordinary shares in Ecolite Biotech
Manufacturing Sdn Bhd. The acquisition
would be satisfied via a combination of cash
amounting to RM1.8 million and an issuance
of 54.9 million new ordinary shares in
Sunzen at an issue price of 29.5 sen. Sunzen
said it has also entered into a conditional
share sale agreement with Lim Poh Chuw,
Fam Jian Yap, Cai HeGui and Chua Huai
Gen for the acquisition of 150,000 ordinary
shares in Yanming Resources Sdn Bhd,
which is to be satisfied via cash amounting to
RM600,000 and an issuance of 18.3 million
new ordinary shares in Sunzen, also at an
issue price of 29.5 sen. — Bernama
SUNZEN.COM.MY
Ecobuilt unit wins RM23.16 mil
in adjudication over construction
project payment dispute
KUALA LUMPUR (Dec 20): Ecobuilt
Holdings Bhd’s wholly owned subsidiary
Eko Bina Sdn Bhd has been awarded
RM23.16 million after it obtained an
adjudication decision in its favour in its
case against Golden Wave Sdn Bhd. Eko
Bina initiated the legal action on Aug
10 over a payment dispute relating to
a serviced apartment and retail units
project in Kota Kinabalu, Sabah. To
recap, in January 2021, Golden Wave
awarded a RM166.37 million contract
to Eko Bina, previously known as E&J
Builders Sdn Bhd, as the main contractor
for the project, which is located along
Jalan Wawasan in Sabah’s capital city. In
a filing on Wednesday (Dec 20), Ecobuilt
said that Golden Wave is required to pay
an adjudicated sum of RM23.16 million
as payments due and owing to Eko Bina.
Golden Wave also has to bear the costs of
adjudication of RM61,289 and the legal
costs of RM30,000 for Eko Bina. All the
costs must be paid within 30 days from
the date of the adjudication decision
(Dec 12). However, if Golden Wave fails
to pay all the costs within the stipulated
duration, it has to pay all the costs with
a 5% interest per annum from the expiry
date of the payment until the date of full
and final settlement. — by Anis Hazim
Harvest Miracle appoints largest
shareholder Liu Han Ming as
executive chairman
KUALA LUMPUR (Dec 20): Harvest
Miracle Capital Bhd (formerly Vortex
Consolidated Bhd) has redesignated
its non-independent non-executive
director Datuk Liu Han Ming as executive
chairman with immediate effect. Liu is
succeeding Tan Ooi Jin who is resigning
from the executive chairman post
on the same date “to pursue other
businesses”, according to bourse filings
on Wednesday. It is worth noting
that Ooi Jin also sits on the board of
Ingenieur Gudang Bhd as an executive
director. Touching on Liu, he is the IT
and ICT-related product trader’s largest
shareholder with a 25.02% stake via his
investment vehicle Fortress Parade Sdn
Bhd. He emerged as a major shareholder
in March last year after he subscribed to
the entire 306.52 million shares (25.02%
stake) issued under a private placement
exercise. A month later, he joined the
company’s board as a director. — by Izzul
Ikram
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
BERNAMA
Court orders PAS MP to file defence in DAP
leaders’ suits over Chin Peng family ties claim
KUALA LUMPUR (Dec 20):The George
Town High Court ordered Kepala Bat-
as MP Siti Mastura Muhammad to file
her statement of defence in the lawsuits
brought against her by DAP leaders Lim
Kit Siang, Lim Guan Eng and Teresa Kok
by Jan 11, 2024.
The court’s senior assistant registrar Tun-
ku Intan Nadiah via e-review on Tuesday
ordered her lawyer Mohamad Hakim Faha-
rmi Hassan to file her statement of defence.
SHAH ALAM (Dec 20): A 37-year-old
who became the first man to be charged
with stalking in Malaysia under an updated
provision of the Penal Code, which crim-
inalises stalking or repeated harassment,
will go to trial despite pleading guilty.
Magistrate Sasha Diana Sabtu on
Wednesday ruled that Mohamad Safiq
Rosli’s guilty plea recorded last week was
one that was conditional, which the court
could not accept. She then ordered for
the matter to go on trial, which has been
fixed for Jan 17 next year.
Lawyer Fithril Hakim Ab Jalil, who
represented Mohamad Safiq, informed
the court that his client is standing by his
plea of insanity and is planning to invoke
Sections 347 and 348 of the Criminal
Procedure Code, which deal with acquit-
ting an accused on grounds of mental
disorder and detaining the accused in
a mental institution for as long as the
state ruler permits.
Fithril also asked the court to set one
trial day and for a decision to be made
within the same day. Deputy public pros-
ecutor (DPP) Zilfinaz Abbas agreed that
this is achievable if there are no extensive
cross-examination or re-examination.
In August, Mohamad Safiq, a free-
lance designer, was charged with re-
peatedly harassing photographer Acacia
Mardiana Daud on social media plat-
form X (formely Twitter).
13 THEEDGE CEO MORNING BRIEF
H O M E
Court orders
PAS MP to file
defence in
DAP leaders’
suits over claims
about Chin Peng
family ties
BY TIMOTHY ACHARIAM
theedgemalaysia.com
She also said that a reply to the state-
ment of defence is to be filed on or before
Jan, 26, 2024 by the trio’s lawyers led by
Datuk Sankara Nair.
The lawsuits, which were filed sepa-
rately by the three, are in relation to Siti
Mastura’s speech made while campaigning
for the Kemaman by-election.
First man
charged under
new anti-stalking
law to go to trial
BY TARANI PALANI
theedgemalaysia.com
He was accused of sending three com-
munications which expressed his feelings
for the 31-year-old to her account in July,
despite knowing that the act was likely to
cause distress, fear or alarm to her.
He was charged under Section 507A
of the Penal Code, which carries a maxi-
mum sentence of three years in jail, a fine,
or both upon conviction.
The law came into force in May this
year criminalising stalking, or repeated
harassment. Mohamad Safiq has been in
custody since August when he was charged,
although bail was offered.
The court also ordered a psychiatric
evaluation on him. On Dec 15, the accused
pleaded guilty to the charge, changing his
initial plea recorded months prior.
Convoluted proceedings and plea
However, there was a twist to the mitiga-
The plaintiffs were also represented by
lawyers Jaden Phoon Wai Ken and Wong
Guo Jin.
The politicians claimed that Siti Mas-
tura made defamatory statements about
them being related to the Communist Par-
ty and its leader Chin Peng, along with first
Singaporean prime minister Lee KuanYew
during a political talk on Nov 4, alleging
that they were linked to the Communist
Party, supported, practised and spread
communist ideology and philosophy in
the country.
The plaintiffs said the defendant’s
claims were baseless, false and with
ill-intent as they deliberately associat-
ed them with the Communist Party and
Chin Peng.
“The defendant’s actions were mo-
tivated by deceit to garner publicity to
boost her political party’s image,” the
plaintiffs said in their statement of claim,
in which they seek general damages, ag-
gravated damages and exemplary dam-
ages as well as an injunction to prevent
the defendant from further publishing
the same statement.
tion on Wednesday when the DPP ob-
jected to the accused’s guilty plea if he
was to invoke the defence of insanity un-
der Section 347 of the Criminal Proce-
dure Code, as it was a “conditional plea”.
She said the psychiatric evaluation
report only fulfilled the medical test
of insanity. In order to satisfy the legal
threshold, she said that it was on the de-
fence to prove that Mohamad Safiq was
not of sound mind during the incident.
She argued that the legal test can only
be fulfilled after a full trial.
Zilfinaz also noted that the psychiat-
ric evaluation report had contradicting
findings where the doctor found that
the accused is fit to enter a plea and
for trial but also found that Mohamad
Safiq was not of sound mind during
the incident.
Fithril contended that the guilty plea
was not to release his client of culpability.
He said that it has been stated since
the beginning of the case that the men-
tal state of his client was ambiguous.
The counsel added that the prosecu-
tion themselves asked for the psychi-
atric evaluation and used that report
selectively.
“Justice will not be served if Mo-
hamad Safiq is imprisoned. But if he is
sent to a mental institution, then there
is some chance of reform (for him),”
Fithril argued.
 T H U R S D AY D E C E M B E R 2 1 , 2 0 2 3
Covid-19: Current Omicron variant
non-virulent, says public health
specialist
KUALA LUMPUR (Dec 20): The Omicron
variant currently dominating Covid-19
infections is not virulent, according to
Ministry of Health (MOH) Public Health
Medicine Specialist Dr Tan Seok Hong.
She said most active cases involving the
Omicron variant exhibit mild symptoms.
In addition, Dr Tan said Covid-19 cases
are expected to decrease within a
month, based on MOH’s observations of
the trend in virus infections. “Although
cases may rise again soon, in four to
six weeks, it will decrease. Before this,
there has been an increase in cases
as well, but based on observations,
the cases will decrease after one
month,” she said when appearing as
a guest on Bernama Radio’s Jendela
Fikir programme on Wednesday, while
Govt discussing proposal to
establish International Commercial
Court in Malaysia — Azalina
KUALA LUMPUR (Dec 20): The
government is currently exploring the
proposal to establish an International
Commercial Court in Malaysia, said
Minister in the Prime Minister’s
Department (Law and Institutional
Reform), Datuk Seri Azalina Othman
Said. In a Facebook post, Azalina said
that the proposal was discussed during
her meeting with the Chief Justice of
Malaysia, Tun Tengku Maimun Tuan Mat,
and representatives of the judiciary at
the Palace of Justice on Wednesday. She
stated that this initiative aims to make
Malaysia one of the preferred destinations
in the region for the resolution of
commercial law disputes. “And also
enhance the confidence of foreign
investors to invest in our country, in line
with the Unity Government’s agenda to
attract foreign investment to Malaysia
through a suitable model,” she said.
— Bernama
14 THEEDGE CEO MORNING BRIEF
H O M E
NEWS IN BRIEF
ZAHID IZZANI/THE EDGE
discussing on protecting high-risk groups.
Nevertheless, Dr Tan advised the public to
take precautionary measures during the
school holiday season. She said individuals
testing positive for Covid-19 and in self-
quarantine need not prolong isolation
beyond the fifth day, even if subsequent
test results remain positive. “MOH will
soon release guidelines regarding the
third booster dose,” she said, adding that
until then, the public is urged to adhere to
existing procedures. — Bernama
Company director gets more than
RM500,000 penalty for failing to
submit tax returns
KUALA TERENGGANU (Dec 20): A
construction company director was fined
RM9,000 and incurred a special penalty
of RM536,549.13 by the Magistrates
Court here on Wednesday after she
pleaded guilty to failing to submit tax
returns to the Inland Revenue Board
(IRB) for two years. Magistrate Yuhanis
Mohd Roslan meted out the sentence
on Nur Faraziela Mohamad, 42, and
ordered her to pay the overdue tax
for the assessment years 2019 and
2020 amounting to RM178,849.71
The woman paid the fine. Based on the
charge, Nur Faraziela, who is also a major
shareholder of Cherang Sepadu Sdn
Bhd, had failed to submit the Income Tax
Statements (Form C) for the assessment
years 2019 and 2020. The taxable
revenue for 2019 was RM28,083,
for which a tax of RM4,774.11 was
due, whereas the taxable revenue for
2020 was RM900,315 with a tax of
RM174,075.60. The charge was framed
under Section 112(1A) of the Income
Tax Act 1967, which is punishable
by a fine of between RM1,000 and
RM20,000 or a prison term of not more
than six months, or both, and a special
penalty of three times the taxes owed.
IRB prosecuting officer Noor Mazida
Buliami appeared for the prosecution,
while the company director was
unrepresented. — Bernama
Fahmi: Socso protection soon for film
industry workers, including freelancers
PUTRAJAYA (Dec 20): Workers in the film
sector, including freelancers, will receive
Social Security Organisation (Socso)
protection that will also include pension
benefits, Communications Minister Fahmi
Fadzil said. He said the scheme will enable
film industry practitioners, many of whom
face difficulties in terms of social security,
including pension issues, to have sufficient
protection. Therefore, Fahmi said the
National Film Development Corporation
Malaysia (Finas) has been asked to engage
in in-depth discussions with Socso, to
enable the implementation of the scheme
as soon as possible. “For cast and crew,
their hands, legs and bodies are their tools
for work. Should anything happen, the
impact is lifelong,” he said. He was speaking
to newsmen after attending the “Program
Spotlight: Apresiasi Sinema Malaysia Tahun
2023” event here on Wednesday, which
gives recognition to production companies
and industry players who have made
significant contributions to the national and
international film industry. — Bernama
MASwings acquisition to be
completed by 2Q or 3Q next year
— Abang Jo
KUCHING (Dec 20): The acquisition
of MASwings Sdn Bhd by the Sarawak
government is expected to be finalised by
either the second or third quarter of next
year, said Premier Tan Sri Abang Johari
Tun Openg. He said two state ministries —
the Ministry of Tourism, Creative Industry
and Performing Arts and the Ministry
of Transport— are currently conducting
due diligence on the matter. “The tourism
ministry is tasked with looking at the
market potential. For me, the takeover
project is like a bridge for us. Sarawak has
no other option,” he told reporters after
attending the launch of the book, ‘The
Life of Datuk Polycarp Sim Cheng Mong’,
here on Wednesday. On Nov 23, state
Deputy Transport Minister Datuk Dr
Jerip Susil said the Sarawak government
was currently conducting due diligence
on MASwings in preparation for its
acquisition. Negotiations are also ongoing
with the Malaysia Aviation Group (MAG)
and Khazanah Nasional Bhd to acquire
the shares in MASwings. — Bernama
REUTERS
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
Over 100 container ships reroute
as US weighs Red Sea response
(Dec 20): More than a hundred container
ships are taking the long route around Afri-
ca to avoid violence in the Red Sea, creating
extra costs and delays, as the US weighs up
how to respond to the latest threat to the
global economy.
According to logistics giant Kueh-
ne+Nagel, 103 container vessels are re-
routing from the Red Sea around Africa.
Companies are also starting to look at using
rail and air routes instead as the waterway
that carries 12% of global trade is deemed
too perilous to pass.
The attacks on commercial vessels by the
Yemen-based Houthi militants amount to
an escalation of the Israel-Hamas war, but
not the one most analysts had been expect-
ing. The Houthis are acting in support of
Hamas — initially targeting ships linked to
Israel — and the US and its allies are figur-
ing out how best to respond without making
the violence worse.
As Washington tries to forge a common
position — one option is strikes on Yem-
en — shippers are digging in for weeks of
disruption. Insurance premiums are surg-
ing for those who do cross the Red Sea,
freight rates are up and so are oil prices —
all potential factors for more inflation just
as central banks appeared to be gaining the
upper hand.
“Both options of increased premiums
and rerouting around Africa will see a
knock-on effect on the price of goods,”
said Toby Vallance, Executive Committee
Member of the London Forum of Insur-
ance Lawyers.
The US and its allies are bringing togeth-
er a new task force to tackle Iran-backed
Houthis, though it’s not clear when it will
15 TheEdge CEO morning brief
w o r l d
by Stefan Nicola
Bloomberg
The attacks have created
potentially a worse — and
more enduring — shipping
emergency than the Suez
Canal shutdown in 2021,
when a ship stuck for a
week snarled global trade
for months. The disruption
also comes just as the other
main artery, the Panama
Canal, is slowing down
because of drought.
come into effect. They’re also weighing up
possible military strikes, but diplomacy re-
mains the preferred approach for now, ac-
cording to people familiar with the matter.
Some countries, including Saudi Arabia,
which bordersYemen, are wary that strikes
will provoke the Houthis, who have a formi-
dable arsenal of ballistic missiles, to become
even more aggressive.
Shippers are worried that even some of
the solutions bring their own problems. Con-
voys, for example, imply delays.
“It will slow down the trade because
we will have to wait for a convoy to pass
through” the region, Euronav NV Chief
Executive Officer Alexander Saverys said
in an interview with Bloomberg TV. The oil
tanker giant has halted shipments via the
Red Sea and won’t go back until such mil-
itary escorts are in place.
The attacks have created potentially a
worse — and more enduring — shipping
emergency than the Suez Canal shutdown
in 2021, when a ship stuck for a week snarled
global trade for months. The disruption also
comes just as the other main artery, the Pana-
ma Canal, is slowing down because of drought.
Still, the global shipping system has more
slack in it than it did when the Ever Given
got stuck. And there are reasons to believe
the disruptions will have only a moderate
economic impact, Bloomberg Economics
said on Tuesday.
“Most likely, the rerouting will mean
higher prices — especially for countries most
reliant on maritime trade through the Suez
Canal — but with a far lower impact than
the Covid-era spike in transportation and
energy prices,” the analysts said in a report.
Read also:
Shipping industry in the dark over
US-led Red Sea navy force
Shipping companies remain in the dark over
a new international navy coalition being
assembled by the United States to combat
attacks in the Red Sea, with many vessels
continuing to avoid the area or cancelling
contracts, sources said on Wednesday.
Brent lurks above US$80 as Red Sea
tensions spur jitters
Brent crude futures were up US$1.07, or
1.4%, at US$80.30 a barrel by 1449 GMT,
while US West Texas Intermediate crude
climbed US$1.14, or 1.5%, to US$75.08 a
barrel.
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
reuters
Big UK inflation
drop bolsters
bets on Bank of
England cuts early
next year
by Andy Bruce & David Milliken
Reuters
LONDON (Dec 20): British inflation
plunged in November to its lowest rate in
over two years, prompting investors to pile
further into bets that the Bank of England
(BOE) will cut interest rates in the first half
of next year.
The annual rate of increase in consum-
er prices dropped to 3.9% from 4.6% in
October, pushed down in part by cheaper
petrol, for its lowest reading since Septem-
ber 2021, the Office for National Statistics
(ONS) said on Wednesday.
The headline consumer prices index
(CPI) inflation reading was below all fore-
casts in a Reuters poll of economists which
had pointed to a figure of 4.4%. Core and
services measures of inflation — closely
watched by the BOE — also dropped.
Investors moved to fully price in a BOE
rate cut by May 2024 and now see a nearly
50% chance of a cut by March. The pound
shed almost half a cent against the US dollar,
falling from US$1.271 to US$1.266. Brit-
ish government bond yields also tumbled.
With its headline rate of inflation now
matching that of France, Britain no longer
looks like such an outlier in international
terms. But the almost 21% rise in consumer
prices since 2020 is still more than any oth-
er Group of Seven advanced economy and
the joint-highest increase in western Europe.
CPI inflation peaked at a 41-year high
of 11.1% in October 2022, driven higher
by a surge in energy prices after Russia’s
full-scale invasion of Ukraine, which ag-
gravated existing bottlenecks that were
pushing up prices after the Covid-19
pandemic.
16 TheEdge CEO morning brief
w o r l d
BOE officials have been cautious about
whether recent signs of cooling inflation truly
represent a sign that persistent, longer-run
price pressures are receding, but economists
said the latest figures may prompt a rethink.
“This provides strong evidence that dis-
inflationary pressures are building in the
UK,” PwC economist Jake Finney said.
“Headline, core and services inflation are
all now materially below the Bank of Eng-
land’s expectations in their last November
Monetary Policy Report.”
The ONS said transport — and particular-
ly motor fuels — was the biggest downward
contributor to inflation in November. Fuel
prices were 10.6% lower than the year before.
A much smaller monthly rise in food
and drink prices than in November last
year also helped, although they remain
27% higher than two years ago and have
risen more than 9% in the past 12 months.
Finance Minister Jeremy Hunt said the
data showed inflation pressures were being
removed from the economy. Opposition
Labour Party spokeswoman Rachel Reeves
said people were worse off after 13 years
of Conservative government.
Prime Minister Rishi Sunak, who is
set to meet his promise to halve inflation
this year, must hold a national election
by January 2025.
Core inflation, which strips out energy
and food prices, showed an unexpectedly
sharp drop, falling to 5.1% from 5.7%.
The rate of services inflation — which
BOE officials pay particular attention to
as a gauge of domestically generated in-
flation — fell to 6.3% from 6.6%.
Samuel Tombs, economist at Panthe-
on Macroeconomics, said the BOE’s new
measure of underlying services inflation
also fell sharply — something the BOE
could not dismiss as “noise”.
The central bank has been concerned
that historically high rates of wage growth
will be slow to fall given workers’ recent
experience of inflation and a fairly tight la-
bour market, making it hard for CPI to fall
all the way back to the BOE’s 2% target.
Separate data showed manufacturers’
raw materials costs were 2.6% lower than
a year earlier, the same pace of decline as
in October and the joint-biggest since July.
Producer output prices fell 0.2%, slightly
less than the 0.5% decrease forecast by
economists in a Reuters poll.
Read also:
World shares hit near two-year high,
focus on UK inflation, Red Sea
UK households could see energy bills
fall 14% by spring
London house
prices see
biggest fall
since 2009 in
ONS data
by Lucy White
Bloomberg
(Dec 20): The downturn in the UK
housing market steepened in Octo-
ber, with the average cost of a home
sliding 1.2% from a year earlier as
higher interest rates stymied activity.
The average house costs
£288,000 (RM1.7 million), the
Office for National Statistics (ONS)
said Wednesday. The fall followed a
0.6% annual decline in September.
London house prices in October
dropped 3.6%, the most since 2009
when the financial crisis was raging.
The figures add to the impression
of a property market under pressure
after the Bank of England aggres-
sively raised interest rates in a bid
to tame inflation. The ONS record-
ed 82,910 transactions in October,
down 21% on the year and 3% on
a month earlier.
Falling house prices could prove
problematic for Prime Minister Ri-
shi Sunak, who is gearing up for a
general election next year.Traditional
Conservative voters tend to be more
likely to own property, and will be
keen to avoid a fall in valuations.
Yet with the Tories lagging the
opposition Labour Party in opinion
polls, Sunak also needs to appeal to
a wider demographic — and younger
voters have consistently rated the af-
fordability and availability of housing
among their top issues.
ONS Head of Housing Market
Indices Aimee North said the falls
in October were “widespread across
almost all nations and regions with
only Scotland and the North East
of England reporting annual price
growth”.
“London saw the steepest fall in
average house prices and its annual
inflation rate now stands at its lowest
level since 2009,” she said.
Read the full story
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
(Dec 20): ByteDance Ltd’s sales surged
in 2023 to more than US$110 billion
(RM512.38 billion), according to people fa-
miliar with the matter, potentially overtak-
ing arch-foe Tencent Holdings Ltd in a sign
TikTok’s fledgling e-commerce business is
driving growth at a time of economic malaise.
The world’s most valuable startup’s growth
broadly matched the 30% pace it managed
in 2022, when it reported sales in excess of
US$80 billion, the people said, asking not to
be identified as the information isn’t public.
That’s despite economic turbulence in China
and elevated scrutiny and restrictions in key
markets from the US to India.
The owner of TikTok and Chinese-twin
Douyin this year cemented its position as one
of China’s internet leaders, alongside Tencent
and Alibaba Group Holding Ltd, leveraging
the popularity of its social video services to ex-
pand into e-commerce and other spheres. At
roughly 30%, ByteDance would outpace the
projected growth of far more established so-
cial media rivals Meta Platforms Inc and Ten-
cent, which is estimated to generate US$86
billion in revenue this year.
It’s not clear how ByteDance — which as
a private firm has far fewer disclosure and
audit requirements versus its listed rivals —
performed in profitability this year.While its
internal numbers haven’t been independently
audited, the sheer scale suggests the social me-
dia juggernaut in 2023 became one of China’s
largest corporations by revenue. Its earnings
before interest, tax, depreciation and amorti-
China share sale malaise
seen persisting amid
economic slump
by Filipe Pacheco & Pei Li
Bloomberg
(Dec 20): The slowdown in China’s equity
offerings may not be over just yet as the coun-
try’s economy remains in the doldrums and
regulations for new listings become stricter.
New and additional share sales in main-
land China and Hong Kong fell 43% from
last year to US$96.3 billion (RM451.1 bil-
lion) in 2023. The annual proceeds raised
are set to be the worst in a decade, Bloomb-
erg data showed.That compares with a 51%
increase in volume raised in the US and a
14% rise in Europe.
Chinese companies and their holders have
refrained from tapping investors through
stock sales as a weak economic outlook and
fizzling expectations for a bazooka stimulus
programme weigh on sentiment. The on-
shore CSI 300 Index has fallen 14% this
17 TheEdge CEO morning brief
w o r l d
ByteDance’s sales
break US$110 bil
to pass Tencent
this year
by Zheping Huang & Manuel Baigorri
Bloomberg
zation surged 79% to about US$25 billion in
2022, the Financial Times reported in April,
citing investors briefed on the number.
A ByteDance spokesperson declined to
comment.
ByteDance is banking on its Chinese home
base to bankroll a global and business expan-
sion in 2024.
In China, Douyin is morphing to become
an all-in-one platform with built-in features
for food orders, flight tickets and hotel res-
ervations, encroaching on the main territo-
ry of Alibaba and delivery leader Meituan.
Abroad, TikTok is following that strategy to
blend videos and shopping in markets like the
US and Indonesia, where it has taken con-
trol of GoTo’s e-commerce unit Tokopedia.
The US$1.5 billion deal, which marks one
of ByteDance’s biggest takeovers in recent
years, allows TikTok to restart its online re-
tail service after months of scrutiny by the
Indonesian government.
year, while the Hong Kong benchmark has
slump over 15%.
“We hope to see more of a top-down ap-
proach in terms of policy support, and more
focus on the economy, which will help us
actually rebuild a little bit of investor confi-
dence, with international capital hopefully
flowing back into the China business,” said
Selina Cheung, co-head of Asia equity capital
markets at UBS Group AG in Hong Kong.
Measures introduced by Beijing to slow
the pace of initial public offerings may also
In the US, TikTok is still working to ad-
dress concerns around national security due
to its Chinese ownership by setting up a stan-
dalone team to manage local user data. The
hostility reached its peak in March, when
American lawmakers grilled TikTok chief
executive officer Shou Chew in a five-hour
hearing. But Washington quickly shifted
to issues like semiconductors and venture
funding.
Longer term, it remains to be seen if By-
teDance can continue to challenge the major
incumbents on their turf or make its mark in
artificial intelligence.
ByteDance has tried to expand beyond the
social media apps that pushed its valuation
to above US$200 billion, the highest of any
startup in the world, with limited success.
The company this year pulled the plug on
its game development business, slashing hun-
dreds of jobs while weighing sales of existing
projects. Its ChatGPT-like service, Doubao,
competes with a sea of Chinese AI bots fund-
ed by well-known venture firms and fellow
technology companies.
The company founded more than a dec-
ade ago by coding wizards ZhangYiming and
Liang Rubo is one of the few remaining Chi-
nese internet IPO candidates, but there’s still
no clear path to its eventual stock market de-
but. In the latest round of investor buybacks,
it’s offering to purchase up to US$5 billion
from shareholders at a valuation of US$268
billion, roughly 11% lower than the price in
a similar programme in 2022.
put the brakes on companies’ plans to come
to market.
Stock performances have also been less
than impressive. Local investors used to en-
joy hefty gains from IPO stocks, but the av-
erage first-month gain for new shares on the
mainland has fallen to 22% this year from
27% in 2022 and 81% in 2021, Bloomberg
data showed.
Read the full story
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
Alibaba ousts commerce chief,
splits assets in new shakeup
(Dec 20): Alibaba Group Holding Ltd re-
placed one of its most experienced execu-
tives at the helm of e-commerce and plans
to create a firm to oversee its investment
assets around the world, the latest in a series
of sweeping changes to roil the once-dom-
inant Chinese online juggernaut.
Chief executive officer Eddie Wu will
replace Trudy Dai, one of an inner circle
of partners present when Jack Ma found-
ed the company in 1999, as head of the
division that runs Alibaba’s main Chinese
e-commerce platforms Tmall and Taobao.
Dai will instead help set up an entity to
manage some of its vast portfolio of assets
around the world. Alibaba, whose invest-
ments include stakes in startups as well as
businesses from entertainment to physical
retail, described that entity as overseeing
the company’s non-core assets without
elaborating.
Alibaba’s shares rose 2% in Hong Kong
on Wednesday.
The surprise decision comes as Alibaba
strives to rejuvenate a company after a se-
ries of missteps and regulatory scrutiny has
eroded its market dominance in past years.
Dai’s departure marks the latest shakeup at
the Chinese corporate icon, which has en-
dured post-Covid consumption volatility, a
bruising years-long government crackdown
and — most recently — the surprise ascent
of rivals including PDD Holdings Inc and
ByteDance Ltd.
Wu, who himself took over Alibaba just
months ago, intends to cultivate new man-
agers to steer his firm for the longer term.
The decisions for now may reflect a de-
sire to take direct control of under-per-
forming divisions, while exploring sales of
businesses considered less essential to the
Japanese firm hits Alibaba with patent lawsuits from US to Korea
(Dec 20): A little-known Japanese firm
has sued Alibaba Group Holding Ltd in
three countries for allegedly violating its
patents on cross-border e-commerce, seek-
ing court injunctions or damages against
the Chinese online pioneer.
Tokyo-based patent rights company
BWB Inc filed for an injunction against
Alibaba’s overseas transactions at the
Seoul central district Ccurt on Friday.
BWB, which owns customs-clearance and
logistics patents, had filed for injunctions
18 TheEdge CEO morning brief
w o r l d
by Sarah Zheng
Bloomberg
reuters
main cloud, retail and logistics divisions.
“Alibaba wants to go into battle with
a light pack, and this is a way to handle a
lot of its more burdensome and non-core
businesses,” said Li Chengdong, head of the
Beijing-based Internet think-tank Haitun.
“These hinder the overall competitiveness
and flexibility of the company.”
Once the most valuable company in
China, Alibaba has fallen behind games
and social media leader Tencent Holdings
Ltd. It lost its position as China’s most val-
uable e-commerce operator to eight-year-
old upstart PDD, which has far outstripped
Alibaba’s growth with the help of hit shop-
ping app Temu.
Ma, arguably China’s most famous en-
trepreneur, in November broke years of
silence to issue a call to arms for employ-
ees, following years of brutal government
punishment and a series of volatile deci-
sions in 2023.
Earlier this year, the company unveiled
a plan to split itself into six parts — then
walked back that plan while ejecting former
CEO Daniel Zhang. It scrapped a spinoff of
its US$11 billion (RM51.5 billion) cloud
by Masatsugu Horie
Bloomberg
and damages at the Tokyo district court in
April and at the US district court for the
northern district of California in November.
BWB’s system helps merchants pre-reg-
ister goods at customs at a pre-determined
tax rate and helps customers pay the duties
at the time of the purchase, ensuring de-
livery. In the Japanese lawsuit, BWB asked
for an injunction against Alibaba and its
division that some investors wanted, de-
claring that the company needed a “reset.”
“We must confront our past and change
ourselves for the future,” Alibaba chairman
Joseph Tsai said in an internal memo an-
nouncing the latest changes to employees
on Wednesday. “Soon, we will empower a
new cohort of management leaders who
have developed fundamental skillsets and
experience from the bottom up.”
Alibaba is now bent on clawing back lost
ground and investing anew in cloud and
e-commerce — its two biggest businesses.
Wu and other executives have also talked
about the need to review their investment
portfolio to identify and create value from
Alibaba’s assets. Dai is one of its most in-
fluential leaders, an engineer by training
who around 2022 took over the manage-
ment of Taobao and Tmall. The Chinese
e-commerce division accounted for more
than 40% of overall revenue this year.
Alibaba in November reported bet-
ter-than-expected revenue, driven by its
overseas business as well as the logistics
arm Cainiao.
It’s unclear however what the company
intends to do with more peripheral oper-
ations and which ones will be folded into
the holding company, which is supervised
by a committee under Tsai. Those include
video service Youku Tudou or its InTime
department store chain, Li said.
“This is another big step to reverse Alib-
aba’s previous plan to split up under Dan-
iel Zhang. Now Wu will take control of the
group, cloud and Taobao-Tmall, with more
consolidation of power to the group level,”
said Willer Chen, research analyst at For-
syth Barr Asia. “There could be more sales
of non-core assets looking ahead.”
logistics unit Cainiao, as well as Tmall
operator Taobao China Holding Ltd, ac-
cording to a copy of the lawsuit seen by
Bloomberg News.
An Alibaba spokesperson said the com-
pany doesn’t comment on ongoing litiga-
tion.The company has previously denied
it infringed on BWB’s patents and asked
theTokyo court to dismiss the claims. Kota
Morimoto, a spokesperson for BWB, con-
firmed they filed lawsuits in three countries
but declined to comment further.
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3 19
w o r l d
(Dec 20): Toyota Motor Corp pledged
Toyota vows
“fundamental reform” after subsidiary
Daihatsu Motor Co was forced to suspend
reform after
all shipments — and now faces a govern-
ment raid of its offices — following an in-
affiliate Daihatsu
vestigation that found most of its vehicles
weren’t properly tested for collision safety.
caught in safety
The situation presents a crisis of trust
not only for the world’s largest carmak-
scandal
er, which suffered a another scandal last
year with its other major unit Hino Mo-
tors Ltd, but also for the country’s auto-
motive industry.
“It is honestly surprising,” Bloomb- by Nicholas Takahashi
erg Intelligence senior auto analyst Tat- Bloomberg
suo Yoshida said, adding that it might be
necessary for Daihatsu to suspend pro-
duction as well, due to the time it can
take to reacquire certifications that were
fraudulently obtained. “Toyota won’t be
exempt from management oversight re-
sponsibility.”
Toyota said in a statement on Wedned-
say that around 174 irregularities have
been identified across 64 models, includ-
ing in some cars sold under the Toyota
brand. The move to suspend Daihatsu’s
shipments will affect vehicles produced in
TOKYO (Dec 20): Toshiba was delisted
Toshiba delisted
on Wednesday after 74 years on the Tokyo
exchange, following a decade of upheav-
after 74 years,
al and scandal that brought down one of
Japan’s biggest brands and ushered in a
faces uncertain
buyout and an uncertain future.
The conglomerate is being taken pri-
future with new
vate by a group of investors led by private
equity firm Japan Industrial Partners (JIP)
owners
that also includes financial services firm
Orix, utility Chubu Electric Power and
chipmaker Rohm.
The US$14 billion (RM65.6 billion)
takeover puts Toshiba in domestic hands by Anton Bridge
after protracted battles with overseas ac- Reuters
tivist investors that paralysed the maker of
batteries, chips, and nuclear and defence
equipment.
Toshiba “will now take a major step to-
ward a new future with a new shareholder,”
the company said in a statement, adding
that it would appreciate continuous under-
standing and support from its stakeholders.
Toshiba shares ended Tuesday, their last
trading day, at ¥4,590, down 0.1% from
the previous day.
Although it is not clear what shape
Toshiba will ultimately take under its new
owners, chief executive Taro Shimada, who
is staying in his role following the buyout,
is expected to focus on high-margin dig-
ital services.
JIP’s support for Shimada had derailed
its earlier plan to team up with a state-
backed fund. Some industry insiders say
TheEdge CEO morning brief
Bloomberg
Japan and overseas, and not only at Toy-
ota factories but possibly also at compa-
nies like Mazda Motor Corp and Suba-
ru Corp, considering Daihatsu provides
manufacturing services to a range of other
automakers.
Previously, only about half a dozen
models were thought to be affected by
the manipulated test results, but Toyota
now says almost every car in Daihatsu’s
line-up could be impacted. Japan’s trans-
port ministry said it will conduct an on-
site inspection of the company’s offices on
Thursday at 9 a.m. local time.
The investigation centres around cars’
airbag control unit and found that the ones
used during crash tests were different from
the ones used in cars actually sold to the
public. While those other test units were
later found to meet industry standards,
side-collision test results of the Daihatsu
Cast and Toyota Pixis models “may not
comply with the law,” Toyota said.
Toyota said it’s not aware of any ac-
cidents or incidents related to the issue.
Read the full story
splitting up Toshiba may be a better option.
“Toshiba’s difficulties ultimately were
caused by a combination of bad strate-
gic decisions and bad luck,” said Damian
Thong, head of Japan research at Mac-
quarie Capital Securities.
“I hope that through divestitures,Toshi-
ba’s assets and human talent can find new
homes where their full potential can be
unleashed.”
Japan’s government will be keeping a
close watch.The company employees around
106,000 people and some of its operations
are seen as critical to national security.
Four JIP executives will join the board,
as well as one each from investors Orix
reuters and Chubu Electric.The new management
team will be joined by a senior adviser from
Toshiba’s main lender, Sumitomo Mitsui
Financial Group.
Toshiba has begun moving already,
teaming up with Rohm to invest US$2.7
billion in manufacturing facilities to jointly
produce power chips.
The company needs to get out of low-
er-margin businesses and develop stronger
commercial strategies for some of its ad-
vanced technologies, said Ulrike Schaede,
a professor of Japanese business at the Uni-
versity of California, San Diego.
“If management can figure out a way to let
those engineers truly engage in breakthrough
innovation activities, they can emerge as an
important player,” Schaede said.
“They’re a deep tech company.”
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
SINGAPORE (Dec 20): Singapore Ex-
change (SGX)-listed SPAC (special pur-
pose acquisition companies) firms Pegasus
Asia and Novo Tellus Alpha Acquisition
(NTAA) are not looking to merge with any
target companies and are instead seeking to
dissolve the blank-cheque companies, ac-
cording to sources familiar with the matter.
This is on the back of lower-than-ex-
pected numbers owing to unfavourable
market conditions, The Edge Singapore
understands. Pegasus’ announcement is
expected to be made by Dec 22 while
NTAA’s is set to be released next week.
The deadline for SGX-listed despac merg-
ers is January 2024.
Should the spacs be dissolved, investors’
funds will be returned. The Edge Singa-
pore has reached out to both Pegasus and
NTAA to seek clarification.
In September, The Edge Singapore re-
ported that Pegasus was targeting Singa-
pore-based Kacific Satellites.
Founded by Christian Patourax in
2013, Kacific operates wholesale broad-
band satellite services, serving telecom op-
erators, ISPs and governments. It boasts
experienced global telecom and infrastruc-
ture investors.
Kacific launched its first Ka-band high
throughput satellite, Kacific-1, in 2019 to
stream high-speed, low-cost and ultra-re-
(Dec 20): Artificial intelligence (AI) pro-
grammes can’t be named as an inventor
for patents, the UK’s top court said in a
crucial ruling refusing to put machines on
a near-equal footing with humans.
Britain’s Supreme Court rejected the re-
quest by Imagination Engines Inc founder
Stephen Thaler, who sought patents nam-
ing his AI machine DABUS as the inven-
tor. Laws on patents require an inventor to
be a natural person and “DABUS is not a
person at all”, the judges said, dismissing
Thaler’s appeal unanimously.
While the ruling follows the same stance
as decisions in the US and the European
Union, it’s the first by any country’s highest
tribunal. It assumes significance as it comes
when the UK is aiming for a pioneering
role in AI technologies and stakeholders
debate safeguards and regulation around it.
The judges said “it may be thought
that the rapid advances in AI technology
in recent times render these questions even
more important”.
Thaler had tried registering the patent
in multiple countries for a beverage con-
tainer and a flashing light saying DABUS
was the inventor. Thaler didn’t immedi-
ately respond to an email for comment.
“DABUS is a sentient being,” he had pre-
viously said.
20 TheEdge CEO morning brief
w o r l d
the edge singapore
Two remaining
SGX-listed SPAC
firms to dissolve,
ending further
de-SPAC hopes
by Khairani Afifi Noordin
theedgesingapore.com
liable broadband to rural and suburban
areas of the Pacific and Southeast Asia.
One of the company’s longtime partners
is ST Engineering iDirect, the satellite in-
novation arm of SGX-listed ST Engineer-
AI can’t be
named as
inventor for
patents, UK top
court says
by Upmanyu Trivedi
Bloomberg
The judgement puts the UK at a sub-
stantial disadvantage in supporting AI-de-
pendent industries and could disincentivise
the disclosure of inventions by AI systems,
said Robert Jehan, a partner at law firm
Williams Powell, which represented Thaler
in the case. It “shows how poorly current
UK patent law supports the aim of mak-
ing the UK a global centre for AI and da-
ta-driven innovation”, Jehan added.
Given the striking speed of advancing
AI capabilities, the issue “may need to be
addressed again in the future”, said Yohan
Liyanage, a partner at law firm Linklaters.
“If the UK government is serious in its
aspiration to establish itself as an AI su-
ing, which provides Kacific with ground
infrastructure.
Meanwhile, in a response to The Edge
Singapore’s report via a filing dated Dec
20, NTAA executive chairman and CEO
Loke Wai San says the company has not
identified a conclusive target and will make
the relevant disclosures at the appropri-
ate time.
Under SGX’s rules, the despacs are to
take place within two years, although an
extension of a year can be given, subject to
approvals. As NTAA commenced trading
on Jan 27 2022, it is likely that the spac
would need to apply for the aforemen-
tioned extension.
The only SGX-listed spac that has suc-
cessfully completed a business combina-
tion is Vertex Technology Acquisition Corp
(VTAC), having merged with live-stream-
ing platform 17LIVE following an EGM
on Dec 1. Notably, institutional investors
such as Fullerton Fund Management and
NTUC Income have fully redeemed their
shares.
On the day of the EGM, VTAC an-
nounced that 62.53% of the company’s
issued share capital have been redeemed
as at Nov 29.
Shares in 17LIVE closed at $1.56 on
Dec 19, almost 70% lower than VTAC’s
IPO price of $5.
perpower, legislative intervention may be
required to allow patentability of inven-
tions which are independently created by
AI systems,” Liyanage said.
The ruling was not concerned with the
broader question of whether technical ad-
vances made by an autonomous AI-pow-
ered machine are patentable, according
to the judges.
“The judgement does not preclude a
person using an AI to devise an invention
— in such a scenario, it would be possible
to apply for a patent provided that person
is identified as the inventor,” said Rajvinder
Jagdev, a partner law firm Powell Gilbert.
The judges agreed with the government’s
lawyers who had argued that allowing Thal-
er’s request would leave the UK as an outlier.
If Thaler’s request is allowed, inventors in
future could include “my cat Felix” or “cos-
mic forces”, the lawyer had argued.
Any change in patent laws to help the
UK become a global centre for AI can only
come following international level delib-
erations, the UK’s Intellectual Property
Office said in an emailed statement af-
ter the judgement. “The government will
nevertheless keep this area of law under
review to ensure that the UK patent sys-
tem supports AI innovation and the use
of AI in the UK.”
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
reuters
Singapore raises rental occupancy
cap to meet high demand
(Dec 20): Singapore will allow more
tenants to occupy a single property under
a temporary two-year measure to meet
higher rental demand in the financial hub.
Starting next year, larger public and private
residential properties will be allowed to
house up to eight unrelated persons from
the current cap of six, Minister for National
Development Desmond Lee said in a
Facebook post on Wednesday. Rents in the
city-state have surged since the pandemic,
largely due to strong demand amid
Covid-19 construction delays, Lee said.
The government has committed to ramp
up housing supply, with close to 100,000
homes expected to be completed by 2025.
The momentum in rental price rises has
moderated and demand is expected to
be restrained by high interest rates and
moderation in wage growth, the country’s
central bank said last month. Still, Lee
anticipates the need to maintain a healthy
rental supply for buyers waiting to move
into their new homes and foreigners who
work and study in the city-state. The new
measures will only apply to four-bedroom
apartments or larger, Lee said. Singapore
will review the need to extend the
temporary rules in end-2026. — Bloomberg
Moomoo Singapore receives
in-principle approval for digital
payment token services from MAS
SINGAPORE (Dec 20): Moomoo Financial
Singapore has received an in-principle
approval for a major payment institution
(MPI) licence — digital payment token
service from the Monetary Authority of
Singapore (MAS). Moomoo, which is the
first digital brokerage to receive the licence,
is now able to offer digital payment token
services to retail and institutional investors
in Singapore once it gets the full licence. So
far, only 15 firms have been granted the MPI
licence to become digital payment token
service providers. Another two firms hold
the standard payments institution licence.
All 17 firms are able to provide digital
payment token services, such as the buying
and selling of digital payment tokens on
their platforms. — theedgesingapore.com
21 TheEdge CEO morning brief
w o r l d
news In brief
Bloomberg
Abu Dhabi’s PureHealth soars 69%
on market debut after almost
US$1 bil IPO
DUBAI (Dec 20): Shares in Abu Dhabi
healthcare platform PureHealth Holding
climbed as much as 69% above their listing
price on Wednesday on their market
debut, after raising almost US$1 billion in
an initial public offering (IPO) for 10% of
the business. PureHealth played a pivotal
role in screening for Covid-19 infections in
the United Arab Emirates, and its IPO has chaired by Sheikh Tahnoun bin Zayed Al
been in the works for years. It is the UAE’s Nahyan, the national security adviser
largest healthcare provider, but has plans and a brother of UAE President Sheikh
to grow internationally. Shares traded at Mohammed bin Zayed. IHC subsidiaries
5.5 dirhams (US$1.50), as the Abu Dhabi have previously listed on the ADX
market opened against an IPO offer price exchange to boost the market as part of a
of 3.26 dirhams per share. PureHealth is broader strategy to diversify the city-
owned by Abu Dhabi sovereign wealth state’s economy away from hydrocarbons,
fund ADQ and one of the capital’s biggest deepen capital markets and spur
conglomerates, IHC, both of which are investment. — Reuters
reuters
Rescue workers retrieve belongings from a damaged house at Shiyuan village following
the earthquake in Jishishan county, Gansu province, China Dec 20, 2023
Chinese earthquake victims pulled to safety in sub-zero cold
HAIDONG, China (Dec 20): Braving sub-zero cold, rescuers on Wednesday pulled to
safety victims of an earthquake that rocked a remote area in China’s northwestern
Gansu province, while survivors faced months of uncertainty ahead without
permanent shelter. The magnitude 6.2 earthquake jolted Jishishan county near the
border straddling Gansu and Qinghai provinces a minute before midnight on Monday,
sending frightened residents out of homes into the cold in the dead of the night. Roads,
power and water lines and agricultural production facilities suffered damage, and the
quake triggered land and mudslides. In Gansu, 113 people had been found dead as of
9am on Wednesday (0100 GMT) and 782 were injured, authorities said. The death
toll in neighbouring Qinghai rose to 21 with 186 injured and 13 missing as of 4pm
on Wednesday. Seventy-eight people have been found alive in Gansu, where rescue
operations ended on Tuesday afternoon, Chinese media said, as the focus shifted to
treating the wounded and resettling residents as a months-long winter loomed. It
was not immediately clear whether the search in Qinghai had ended or not. In Gansu,
more than 207,000 homes were wrecked and nearly 15,000 collapsed, affecting more
than 145,000 people. More than 128,000 emergency supply items including tents,
quilts, tent lights and folding beds were delivered while food such as steamed buns and
instant noodles were provided to the victims. — Reuters
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3
Trump barred from Colorado primary
ballot for role in US Capitol attack
WASHINGTON (Dec 20): Former president
Donald Trump is disqualified from serving as
US president and cannot appear on the prima-
ry ballot in Colorado because of his role in the
Jan 6, 2021, attack on the US Capitol by his
supporters, the state’s top court ruledTuesday.
The historic 4-3 ruling by the Colorado
Supreme Court, likely to be taken up by the
US Supreme Court, makes Trump the first
presidential candidate deemed ineligible for
the White House under a rarely used con-
stitutional provision that bars officials who
have engaged in “insurrection or rebellion”
from holding office.
The ruling applies only to Colorado’s
March 5 Republican primary but it could
affect Trump’s status in the state for the
Nov 5 general election. Nonpartisan US
election forecasters view Colorado as safe-
ly Democratic, meaning that President Joe
Biden will likely carry the state regardless
of Trump’s fate there.
Trump vowed to appeal the ruling to the
US Supreme Court, and the Colorado court
said it would delay the effect of its decision un-
til at least Jan 4, 2024, to allow for an appeal.
The ruling sets the stage for the Supreme
Court, whose 6-3 conservative majority in-
cludes three Trump appointees, to consider
whether Trump is eligible to serve another
term as president.
The lawsuit is viewed as a test case for a
wider effort to disqualify Trump from state
ballots under Section 3 of the 14th Amend-
ment, which was enacted after the US Civil
War to keep supporters of the confederacy
from serving in the government.
The Colorado court concluded that the
US Constitution bars Trump, the frontrun-
ner for the Republican nomination in 2024,
22 TheEdge CEO morning brief
w o r l d
by Andrew Goudsward & Jack Queen
Reuters
The ruling sets the
stage for the Supreme
Court, whose 6-3
conservative majority
includes three
Trump appointees,
to consider whether
Trump is eligible
to serve another
term as president.
from appearing on the ballot because of his
role instigating violence at the Capitol as law-
makers met to certify the results of the 2020
election.The court’s majority acknowledged
the decision was “uncharted territory.”
“We do not reach these conclusions
lightly,” the majority justices wrote. “We
are mindful of the magnitude and weight
of the questions now before us. We are like-
wise mindful of our solemn duty to apply
the law, without fear or favor, and without
being swayed by public reaction to the de-
cisions that the law mandates we reach.”
Trump’s campaign called the court de-
cision “undemocratic.”
“The Colorado Supreme Court issued
a completely flawed decision tonight and
we will swiftly file an appeal to the US Su-
preme Court,” a spokesperson from the
Trump campaign said.
reuters
The decision reverses a ruling by a lower
court judge who found Trump engaged in
insurrection by inciting his supporters to
violence, but concluded that, as president,
Trump was not an “officer of the United
States” who could be disqualified under the
amendment.
The Biden campaign declined to comment.
Colorado voters
The case was brought by a group of Col-
orado voters, aided by the advocacy group
Citizens for Responsibility and Ethics in
Washington (Crew), who argued that Trump
should be disqualified for inciting his sup-
porters to attack the Capitol in a failed at-
tempt to obstruct the transfer of presiden-
tial power to Biden after the 2020 election.
Crew president Noah Bookbinder said
in a statement that the court’s decision is
“not only historic and justified, but is nec-
essary to protect the future of democracy
in our country.”
Courts have rejected several lawsuits
seeking to keep Trump off the primary bal-
lot in other states. Minnesota’s top court
rebuffed an effort to disqualify Trump from
the Republican primary in that state, but
did not rule on his overall eligibility to serve
as president.
Some advocates had hoped the Colorado
case would boost the overall disqualification
effort and potentially put the issue before
the US Supreme Court.
Trump’s campaign has condemned 14th
Amendment challenges as an attempt to
deny millions of voters their preferred choice
for president.
Trump’s lawyers argued that his speech
to supporters on the day of the riot was
protected by his right to free speech, adding
that the constitutional amendment does not
apply to US presidents and that Congress
would need to vote to disqualify a candidate.
Three Colorado Supreme Court justices
dissented from Tuesday’s ruling.
One of the dissenting justices, Carlos
Samour, said in a lengthy opinion that a
lawsuit is not a fair mechanism for determin-
ing Trump’s eligibility for the ballot because
it deprives him of his right to due process,
noting that a jury has not convicted him of
insurrection.
“Even if we are convinced that a candi-
date committed horrible acts in the past —
dare I say, engaged in insurrection — there
must be procedural due process before we
can declare that individual disqualified from
holding public office,” Samour said.
 t h u r s d ay d e c e m b e r 2 1 , 2 0 2 3 23 TheEdge CEO morning brief

M A R K E T S

CPO RM 3,733.0041.00 OIL US$ 76.24-0.31 RM/USD 4.6943 RM/SGD 3.5273 RM/AUD 3.1594 RM/GBP 5.9471 RM/EUR 5.1262

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
Top Glove Corp Bhd 185.9 -0.035 0.905 0.00 7,247.4
TWL Holdings Bhd 161.6 0.005 0.035 0.00 172.5
Jati Tinggi Group Bhd 141.8 0.040 0.310 0.00 121.5
Careplus Group Bhd 95.4 -0.025 0.440 -7.37 257.2
Leform Bhd 75.8 0.020 0.410 98.64 607.2
Widad Group Bhd 71.4 -0.005 0.465 8.14 1,439.9
Velesto Energy Bhd 67.5 -0.010 0.225 50.00 1,848.5
Dagang NeXchange Bhd 65.8 0.020 0.415 -18.63 1,309.9
Sarawak Consolidated 61.5 0.015 0.870 500.00 557.0
Public Bank Bhd 41.1 -0.020 4.320 0.00 83,854.2 World equity indices
My EG Services Bhd 40.2 0.000 0.830 -3.53 6,191.4 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
LKL International Bhd 39.1 -0.005 0.190 -34.21 73.7 (%) (%)
Sime Darby Property Bhd 38.3 0.020 0.620 37.78 4,216.5 DJIA * 37,557.92 251.90 0.68 INDONESIA 7,219.67 31.82 0.44
Reneuco BHD 36.9 0.010 0.235 -35.62 251.8 S&P 500 * 4,768.37 27.81 0.59 JAPAN 33,675.94 456.55 1.37
CIMB Group Holdings Bhd 34.6 -0.060 5.900 1.72 62,924.1 NASDAQ 100 * 16,811.86 82.06 0.49 KOREA 2,614.30 45.75 1.78
Tanco Holdings Bhd 33.3 0.000 0.585 74.63 1,175.7 FTSE 100 * 7,638.03 51.79 0.68 PHILIPPINES 6,520.75 -0.52 -0.01
Nexgram Holdings Bhd 33.0 0.000 0.040 -42.86 26.0 AUSTRALIA 7,537.88 48.81 0.65 SINGAPORE 3,108.03 -8.59 -0.28
MQ Technology Bhd 32.4 0.000 0.025 -50.00 36.8 CHINA 2,902.11 -30.28 -1.03 TAIWAN 17,635.20 58.65 0.33
Kinergy Advancement Bhd 28.9 0.000 0.385 -2.53 748.8 HONG KONG 16,613.81 108.81 0.66 THAILAND 1,400.37 5.47 0.39
AT Systematization Bhd 27.5 0.005 0.010 -33.33 67.9 INDIA 70,506.31 -930.88 -1.30 VIETNAM 1,100.76 4.46 0.41
Data as compiled on Dec 20, 2023 Source: Bloomberg Data as compiled on Dec 20, 2023 * Based on previous day’s closing Source: Bloomberg

Top gainers (ranked by %) Top losers (ranked by %)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(%) (‘000) CHANGE CAP (%) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)
AT Systematization Bhd 0.010 100.00 27,451.8 -33.33 67.9 XOX BHD 0.010 -33.33 2,850.2 -33.33 50.5
Compugates Holdings BHd 0.015 50.00 130.0 50.00 82.5 Focus Dynamics Group Bhd 0.010 -33.33 412.9 -50.00 63.7
ZEN Tech International Bhd 0.025 25.00 6,324.8 25.00 65.7 AE Multi Holdings Bhd 0.010 -33.33 174.9 -60.00 21.6
Ageson Bhd 0.080 23.08 13,275.3 -60.98 24.9 TECHNA-X Bhd 0.010 -33.33 5,618.8 -60.00 22.1
PDZ Holdings Bhd 0.055 22.22 7,718.9 37.50 32.4 CME Group BHD 0.025 -16.67 149.0 -16.67 25.8
Alam Maritim Resources Bhd 0.030 20.00 11.0 20.00 46.0 Barakah Offshore Petroleum 0.035 -12.50 3,049.9 40.00 35.1
TWL Holdings Bhd 0.035 16.67 161,565.0 0.00 172.5 BSL Corp Bhd 0.035 -12.50 600.6 -48.22 67.6
Jati Tinggi Group Bhd 0.310 14.81 141,812.0 0.00 121.5 Ivory Properties Group Bhd 0.070 -12.50 85.1 -12.50 34.3
Eduspec Holdings Bhd 0.085 13.33 26,097.2 -15.00 90.6 Minetech Resources Bhd 0.110 -12.00 27,424.9 100.00 168.2
Pinehill Pacific Bhd 0.390 11.43 3.0 0.00 58.4 SMTrack Bhd 0.040 -11.11 1,735.5 -20.00 48.9
Khee San BHD 0.150 11.11 28.5 7.14 20.6 Imaspro Corp Bhd 4.350 -11.04 1,334.0 -25.64 348.0
Ideal Capital Bhd 2.600 10.17 30.0 52.94 1,300.0 Classita Holdings Bhd 0.045 -10.00 520.1 -87.67 55.5
Teo Guan Lee Corp BHD 1.200 9.09 4.5 11.53 100.2 Permaju Industries Bhd 0.045 -10.00 498.3 0.00 87.6
Rex Industry Bhd 0.125 8.70 7,330.0 -10.71 82.2 GIIB HOLDINGS Bhd 0.095 -9.52 990.0 5.56 56.2
Salutica Bhd 0.835 8.44 19,833.6 215.09 353.6 Thriven Global Bhd 0.100 -9.09 395.1 5.26 54.7
OCR Group Bhd 0.065 8.33 982.4 -35.00 90.1 Vizione Holdings Bhd 0.050 -9.09 6,966.2 -9.09 102.3
S&F Capital Bhd 0.135 8.00 377.6 58.82 74.3 Citra Nusa Holdings Bhd 0.050 -9.09 10.0 -23.08 36.0
Seremban Engineering Bhd 0.690 7.81 5.6 -38.39 55.0 Eversendai Corp Bhd 0.150 -9.09 1,511.5 -3.23 117.1
MCE Holdings Bhd 2.500 7.76 1,872.5 85.19 154.4 Destini Bhd 0.105 -8.70 3,260.7 31.25 174.7
PNE PCB BHD 0.070 7.69 45.1 27.27 39.2 TFP Solutions Bhd 0.055 -8.33 1,791.2 -15.38 32.2
Data as compiled on Dec 20, 2023 Source: Bloomberg Data as compiled on Dec 20, 2023 Source: Bloomberg

Top gainers (ranked by RM) Top losers (ranked by RM)

NAME CLOSE CHANGE VOLUME YTD MARKET NAME CLOSE CHANGE VOLUME YTD MARKET
(RM) (‘000) CHANGE CAP (RM) (‘000) CHANGE CAP
(%) (RM MIL) (%) (RM MIL)
Heineken Malaysia Bhd 23.500 0.460 225.5 -6.75 7,099.3 Rapid Synergy Bhd 27.760 -1.020 423.4 73.93 2,967.4
Carlsberg Brewery Malaysia 19.460 0.380 1,181.7 -14.95 5,949.9 Malaysian Pacific Industries 27.400 -0.600 107.5 -4.73 5,449.8
Ideal Capital Bhd 2.600 0.240 30.0 52.94 1,300.0 Imaspro Corp Bhd 4.350 -0.540 1,334.0 -25.64 348.0
United Plantations BHD 17.800 0.200 468.3 21.56 7,383.2 Nestle Malaysia Bhd 119.500 -0.400 158.6 -14.64 28,022.8
Fraser & Neave Holdings Bhd 28.200 0.200 230.9 30.68 10,343.2 Ayer Holdings Bhd 6.900 -0.190 3.0 4.55 516.5
Kuala Lumpur Kepong Bhd 21.680 0.180 579.9 -3.04 23,380.5 Petronas Gas Bhd 17.480 -0.140 1,824.7 2.10 34,588.2
MCE Holdings Bhd 2.500 0.180 1,872.5 85.19 154.4 Scientex Packaging Ayer Keroh 2.140 -0.110 0.1 -10.83 750.3
HextarTechnologies Solutions 21.980 0.180 3.2 28.84 2,827.7 Malayan Cement Bhd 4.200 -0.090 1,465.6 98.11 5,502.8
Perusahaan Sadur Timah 3.120 0.120 2.0 -28.93 402.8 YNH Property Bhd 4.460 -0.090 2,321.1 5.44 2,357.1
Teo Guan Lee Corp BHD 1.200 0.100 4.5 11.53 100.2 Sam Engineering & Equipment 3.990 -0.090 162.1 -19.07 2,160.9
Panasonic Manufacturing 18.000 0.100 7.6 -21.40 1,093.4 Sungei Bagan Rubber Co Malaya 3.190 -0.090 7.4 -3.90 211.1
Greatech Technology Bhd 4.800 0.100 430.5 -0.83 6,020.2 Aurelius Technologies Bhd 2.630 -0.090 1,688.9 43.72 1,036.4
D&O Green Technologies Bhd 3.630 0.100 2,801.4 -15.19 4,495.0 Bintulu Port Holdings Bhd 4.970 -0.080 6.4 3.54 2,286.2
Petronas Chemicals Group 7.180 0.090 1,857.2 -16.51 57,440.0 APB Resources Bhd 2.560 -0.080 182.1 70.67 283.9
RCE Capital Bhd 2.960 0.080 854.9 75.15 2,169.2 MSM Malaysia Holdings Bhd 1.560 -0.080 5,578.7 83.53 1,096.6
Allianz Malaysia Bhd 18.900 0.080 38.6 33.47 3,363.6 Genting Plantations Bhd 5.590 -0.070 71.9 -10.45 5,015.1
Scientex BHD 3.860 0.070 606.1 19.88 5,987.9 CIMB Group Holdings Bhd 5.900 -0.060 34,644.7 1.72 62,924.1
Salutica Bhd 0.835 0.065 19,833.6 215.09 353.6 Hong Leong Industries Bhd 9.200 -0.050 10.4 0.00 2,939.1
Hong Leong Financial Group 16.500 0.060 564.4 -11.29 18,896.5 FAR East Holdings BHD 3.450 -0.050 1.2 -6.76 2,048.7
Can-One Bhd 2.510 0.060 13.3 -25.52 482.3 Pecca Group Bhd 1.300 -0.050 5,326.7 56.63 977.3
Data as compiled on Dec 20, 2023 Source: Bloomberg Data as compiled on Dec 20, 2023 Source: Bloomberg