f r i day, a p r i l 1 9 , 2 0 2 4 t h e e d g e m a l ay s i a .

c o m
Issue 751/2024

ceoMorningBrief
 SWISS PROSECUTORS SEEK LONG JAIL TERMS FOR DUO
IN US$1.8BIL 1MDB FRAUD p2
F R I DAY, A P R I L 1 9 , 2 0 2 4 t h e e d g e m a l ay s i a . c o m
ISSUE 751/2024

CEOMorningBrief HOME: PJD Link concessionaire says project remains viable, studying realignment p2
Malaysia’s Axiata, Bharti Airtel of India to combine Sri Lankan ops p3
Malaysia’s aviation industry at risk amid full-blown crisis in Middle East — Maybank IB p6
WORLD: China’s central bank signals caution over credit boost as demand weakens p16
TSMC’s first quarter profit rises 9%, beats forecasts p19

PIE Industrial confirms bagging new client,

expects additional RM2.5 bil revenue
Report on Page 4.
WWW.HEITECH.COM.MY/BERNAMA

Amid controversy over

govt contracts, Farhash
ceases to be HeiTech Padu
substantial shareholder
Report on Page 3.
 f r i d a y A P RI L 1 9 , 2 0 2 4
the edge ceo morning brief
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Tarek Obaid (left) and
Patrick Mahony
KUALA LUMPUR (April 18): Swiss state
prosecutors are seeking long prison terms
for two men accused of embezzling US$1.8
billion from 1Malaysia Development Bhd
(1MDB) — Saudi-Swiss businessman Tarek
Obaid and his Swiss-British business partner
Patrick Mahony, the AFP reported.
The two, who are on trial in Switzerland's
top criminal court in Bellinzona, have been
KUALA LUMPUR (April 18): The con-
cessionaire of the Petaling Jaya Dispersal
Link (PJD Link) highway believes the pro-
ject remains viable and will continue to pur-
sue its realisation.
PJD Link (M) Sdn Bhd said it believes
the RM4.4 billion project, which the com-
pany notes is intended to be fully privately
funded, remains viable and is projected
to create 12,000 jobs and generate RM31
billion in economic output.
“It is also a crucial infrastructure that coin-
cides with the rapid development of Selangor,
where a congestion-free connection between
Kinrara and Damansara is still needed.The
highway is designed as a traffic dispersal sys-
tem, to connect with seven major highways
and 11 interchanges, to boost connectivity
among townships and reduce congestion,”
it said in a statement on Thursday.
Communications Minister Fahmi Fadzil
announced the Cabinet’s decision to dis-
continue the proposed 25.4km two-lane
dual carriageway project on Wednesday,
citing PJD Link’s failure to meet a number
of conditions precedent in its allotted time.
PJD Link acknowledges the Cabinet’s
decision and explained that the delay in
fulfilling the conditions was due to the
2 TheEdge CEO morning brief
h o m e
published by
(266980-X)
. 603-77218000
tel
Level 3, Menara KLK, 1 Jalan PJU 7/6,
Mutiara Damansara, 47810, Petaling Jaya,
Selangor, Malaysia
Swiss prosecutors
seek long jail
terms for duo in
US$1.8bil 1MDB
fraud — report
theedgemalaysia.com
accused of creating a sham oil exploration
company through which they stole more than
US$1.8 billion in 1MDB funds.
Swiss federal prosecutor Alice de Cham-
brier called it the "scam of the century" or-
chestrated by fugitive Low Taek Jho or Jho
Low, as she branded the duo "calculative,
manipulative and obscenely greedy" during
court proceedings on Wednesday. She also
PJD Link
concessionaire
says project
remains viable,
studying
realignment
by Izzul Ikram
theedgemalaysia.com
project’s “complexities”.
Meanwhile, PJD Link also noted that
the project, owned by the government
via the Works Ministry, had already gone
through detailed scrutiny by all relevant
ministries and regulatory bodies.
“These concluded with the approvals of
the Environment Impact Assessment (EIA);
Traffic Impact Assessment (TIA); and Social
Impact Assessment (SIA) reports,” it said.
Nonetheless, PJD Link said the com-
pany is cognisant of the public’s concerns
publisher + . Ho Kay Tat
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chief commercial officer . Sharon Teh
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said the two had squandered their loot on
precious stones, private jets, rented yachts
and property in London and Geneva.
She sought a 10-year sentence for Obaid
and a nine-year jail term for Mahony, the
news agency reported.
Prosecutors, who claimed at the start of
the trial that the pair worked with Low on
the scheme from as early as 2009, also want-
ed the two to be detained throughout the
trial due to their perceived flight risk, and
for assets sequestered in Switzerland to be
confiscated and returned to 1MDB.
The trial, which began on April 2 and set
to last until the end of the month, is being
heard by three judges.
Obaid’s lawyer, Daniel Zappelli, however,
highlighted the absence of former Malaysian
prime minister Datuk Seri Najib Razak and
Low in the case, and said there were vari-
ations in the amounts that the defendants
allegedly laundered, AFP reported, citing
Keystone-ATS.
regarding the project, but says that it has
garnered widespread support from stake-
holders along its alignment.
“Its holistic economic and social ben-
efits promise to significantly enhance sus-
tainability and wellbeing across Selangor
and the broader Klang Valley,” it added.
PJD Link said the company is studying
requests to review the highway’s alignment
and sees it as an opportunity to address any
misconception surrounding the project.
“We will continue to work alongside the
relevant government agencies, including
federal and state, to see how this project
can be viable for the people of Selangor and
the greater Klang Valley as well,” it added.
PJD Link has been a complicated affair for
the federal and Selangor state governments.
The project was granted conditional ap-
proval in April 2022 by the previous federal
government under Datuk Seri Ismail Sabri
Yaakob’s administration.
Read the full story
Read also: PJD Link developer to get offi-
cial letter soon on cancellation, says Nanta
 F R I D AY A P R I L 1 9 , 2 0 2 4
Amid
controversy over
govt contracts,
Farhash ceases
to be HeiTech
Padu substantial
shareholder
BY CHOY NYEN YIAU
theedgemalaysia.com
KUALA LUMPUR (April 18): Datuk
Farhash Wafa Salvador, former political
aide to Prime Minister Datuk Seri Anwar
Ibrahim, has ceased to be a substantial
shareholder of HeiTech Padu Bhd, just
one month after acquiring a 15.9% stake
via a private vehicle in the company.
In a bourse filing on Thursday, the
technology services provider said that
Farhash is no longer a substantial share-
holder following the “cessation of his
deemed interest by virtue of the change
in shareholdings in Mfivesouthsea Sdn
Bhd, the holding company of Rosetta
Partners Sdn Bhd, pursuant to Section
8(4) of the Companies Act 2016.”
The latest development comes after
HeiTech Padu was awarded a contract
worth RM190.01 million by the Min-
istry of Transport on April 15, inviting
KUALA LUMPUR (April 18): Axiata
Group Bhd, Malaysia’s largest telecom-
munications company by revenue, and
India’s Bharti Airtel Ltd signed a defin-
itive agreement on Thursday to combine
their Sri Lankan operations.
Under a share swap deal, Axiata’s unit
Dialog Axiata will acquire a 100% stake
in Airtel Lanka, with issuance equivalent
to 10.355% of Dialog shares to Bhar-
ti Airtel, the companies said in a joint
statement.
The Telecommunications Regulatory
Commission of Sri Lanka has granted its
approval for the proposed merger, though
the transaction is still pending other rel-
evant approvals, the statement read.
The merger comes at a time when Ax-
iata is shedding some of its operations in
frontier markets to boost its profit-and-
loss statement as well as strengthen its
balance sheet.
3 THEEDGE CEO MORNING BRIEF
H O M E
criticism that the group won the large
contract due to Farhash’s connection
with Anwar.
However, Transport Minister Antho-
ny Loke Siew Fook clarified on Wednes-
day that the contract’s increased val-
ue to RM190.01 million was due to a
job merger and that the tender for the
project was concluded prior to Farhash
emerging as a substantial shareholder of
HeiTech Padu.
HeiTech Padu has been in the spot-
light since Farhash emerged as its sub-
stantial shareholder on March 14, after
Rosetta Partners, a private vehicle of
Farhash, bought 16.1 million shares or
a 15.9% stake in HeiTech Padu.
According to Farhash, the shares he
holds in HeiTech Padu through Rosetta
Partners are jointly owned with Sultan
Muhammad V of Kelantan.
“The ownership of these shares is also
part of the investment strategy between
Sultan Muhammad V and me to support
Bumiputera companies,” Farhash said
in a statement in March.
He also stressed that he has never
been involved in any part of government
administration and political activities
and is now fully focused on business
and corporate matters.
Farhash was formerly a political aide
to Anwar and PKR’s Perak chief. He
resigned as PKR’s Perak chief in 2022.
Shares in HeiTech Padu settled seven
sen or 2.95% lower at RM2.30 on Thurs-
day, valuing the group at RM232.82 mil-
lion. Year to date, the stock has rallied
by 161.36%.
Malaysia’s Axiata,
Bharti Airtel of India
to combine
Sri Lankan ops
BY ISABELLE FRANCIS
theedgemalaysia.com
Axiata is in the process of selling
its tower business in Myanmar for
US$150 million (RM716.78 million)
and exiting the country amid “wors-
ening macroeconomic parameters and
business conditions”. In December last
year, Axiata sold its Nepal operations
at a loss after seven years, citing pro-
longed regulatory challenges and un-
certainties.
Stop buying gold ETF
as prices may correct
— Philip Capital
BY JASON NG
theedgemalaysia.com
KUALA LUMPUR (April 18): Gold
prices may correct amid potential delay
in the anticipated rate cuts by the US
Federal Reserve, Philip Capital warned
on Thursday and advised investors to
stop buying Malaysia’s sole gold ex-
change-traded fund (ETF).
Prices of the precious metal will be find
within US$2,240-US$2,400 (RM10,629-
RM11,389) range after gaining nearly
16% year-to-date, Philip Capital said.The
research house flagged that gold prices are
now in overbought territory, and down-
graded its rating for Tradeplus Shariah
Gold Tracker ETF to “hold”.
A delay in US rate cut following recent
remark by the Federal Reserve chair Je-
rome Powell may potentially prompt a cor-
rection in gold prices, Philip Capital noted.
Gold typically turns cheaper when
interest rates rise, pressuring prices and
lifting yields of the US Treasury, due to
opportunity cost of holding gold.
Prices of gold have risen to an all-
time high of US$2,431 earlier this
month amid fall in US Treasury yields
on the back of rate cut expectations.
CO N TI N U ES O N PAGE 4
The consolidation will provide econ-
omies of scale and reduce duplication
of infrastructure, “achieve synergies in
technology and capital expenditure”,
leading to better broadband connectiv-
ity, voice and value added services, cost
savings and operational efficiencies, the
statement said.
“The merger between Dialog and Air-
tel Lanka is aligned to Axiata’s strategy of
market consolidation and resilience,” said
Axiata group chief executive officer Vivek
Sood. “The merger will create value for
the shareholders of Dialog and Axiata
through achievable synergies.”
For Bharti Airtel, India’s second-larg-
est mobile network operator, the merger
in Sri Lanka “will unlock new oppor-
tunities for innovation and growth, and
this will benefit consumers,” said Ash-
ish Chandra, the CEO of Bharti Airtel
Lanka (Pvt) Ltd.
 F R I D AY A P R I L 1 9 , 2 0 2 4
KUALA LUMPUR (April 19): PIE In-
dustrial Bhd, whose share price extended
its rally to a new all-time high on Thursday
on reports that it has secured a new cus-
tomer, confirmed the matter and said it is
expecting the new customer to contribute
an additional RM2.5 billion revenue to
the group, of which RM1 billion will be
recognised as early as next year.
The client specialises in servers and
switches, the group’s managing director
Alvin Mui told The Edge, but did not dis-
close its identity. Contract manufacturers
typically do not identify their clients due
to confidentiality agreements to protect
manufacturing processes.
“This customer should contribute about
RM1 billion in revenue for 2025 and RM1.5
billion in revenue for 2026. It should rep-
resent more than 50% of the group’s total
revenue.We are optimistic of achieving RM2
billion (total) revenue in 2025,” Mui said.
It is unclear what the profit margin will
be like. The company’s gross profit margin
stood at 7.03% in FY2023, slightly lower
than the 8.14% it recorded in FY2022.
PIE Industrial’s yearly revenue, which
stayed around RM650 million a few years
earlier, breached RM1 billion in FY2021
when it hit RM1.03 billion, and continued
to climb to RM1.17 billion in FY2022
and RM1.22 billion in FY2023.The group
made a net profit of RM75.41 million in
FY2023, up 6.42% from RM70.86 million
in FY2022 as it received more orders from
its customers in the electronic manufac-
turing services (EMS) segment.
Earlier on Thursday, Kenanga Invest-
ment Bank wrote in a note that PIE had se-
cured, via referral from a key shareholder,
a new sizeable AI server client that would
take up its entire Plant 6. One of three ana-
lysts covering the stock, Kenanga said PIE
would be the new customer’s sole contract
manufacturer outside China.
Mui, who also confirmed that PIE’s
280,000-sq-ft Plant 6 will be allocated
entirely to the new customer, said pilot
production is scheduled to commence by
the end of 2024, while mass production is
slated to begin in 2025.
PIE has also decided to expand the ca-
pacity of its Plant 5 to 180,000 sq ft from its
original 100,000 sq ft, to meet an anticipat-
ed increase in orders from an existing client
who is already taking up the entirety of Plant
FROM PAGE 3
Further, ongoing geopolitical tensions in
the Middle East have also sparked a rally
as investors seek refuge in safe haven assets
to weather the uncertainty.
However, Fed’s Powell has highlighted
that the recent economic data indicated
4 THEEDGE CEO MORNING BRIEF
H O M E
PIE Industrial
Mui said the group is now estimated to
spend 30% more than its initial allocation
confirms bagging
of RM50 million to RM60 million. The
group spent RM45.24 million for capex in
new client,
its FY2023 ended Dec 31, 2023, according
to its latest annual report.
expects additional
The group’s focus now is to ensure the
successful launch of production under the
RM2.5 bil revenue
new plants. So, it is too soon to consider
further expansion plans, Mui said.
“The current (US-China) geopolitical
tension is beneficial to the EMS industry in
BY HEE EN QI Malaysia, as we provide a good alternative
theedgemalaysia.com manufacturing option for those intending
to move their operations out from China.
PIE has also received increased new busi-
ness enquiries,” Mui said.
PIE Industrial Bhd The recent copper price rally has also been
Vol (mil) RM good for the group, which also produces raw
8 6 wire and cables, as customers are loading up
RM5.57
on their orders to avoid price hikes, said Mui,
adding the group is adjusting its selling prices
6 5
monthly, to follow the latest copper prices.
On Thursday, the three-month cop-
4 RM3.59 4 per futures hit a 21-month high of
US$9,582.50 per tonne on the London
2 3
Metal Exchange (LME).
Shares of PIE surged by as much as
20.65% or RM1.02 to RM5.96 on Thurs-
0 2 day, before closing at RM5.57 — still
March 29, 2023 April 18, 2024 up 12.75% or 63 sen — after jumping
*As at market close on April 18, 2024.
Source: Bloomberg
30% to hit limit-up on Wednesday. This
pushed the group’s market capitalisation
up RM679.68 million over the last two
days to RM2.14 billion.
PIE Industrial Bhd’s
Year to date, the counter has surged
annual earnings
71.4%, sharply outperforming its peers in
Net profit Revenue the EMS segment.
(RM mil) (RM bil) Based on its closing price of RM5.57, the
80
70.86
75.41 2 stock is trading at historical price-to-earnings
(P/E) ratio of 29 times, based on its earnings
60 58.11 per share of 19.16 sen in FY2023.
44.92 1.03 1.17 1.22 Kenanga Research raised its net profit
41.36
40 1 forecast for the group to RM110.3 million or
0.66 0.69 28.7 sen per share for FY2025.The stock is
20 currently at a forward P/E ratio of 19.4 times,
based on Kenanga Research’s earnings fore-
0 0 cast. Kenanga Research pegs its target price
FY2019 FY2020 FY2021 FY2022 FY2023
at RM6.75, at a P/E ratio of 23.5 times, as it
Financial year ends on Dec 31
Source: Bursa Malaysia
believes the company’s valuation deserves a
premium for being an AI proxy.
3, he said.This new plant, which is slated to
commence production in June, will also be Read also: PIE Industrial extends rally
dedicated to serve this existing customer. to new all-time high as Kenanga flags new
With the tweak in its expansion plans, client
that it may take longer than expected for US$2,240 followed by US$2,144 amid
inflation to reach its 2% inflation goal. The mixed technical indicators, Philip Capi-
Fed’s rate-setting committee has said that tal said.
they need to be confident that inflation is Nevertheless, “considering the strong
slowing sustainably before cutting rates run-up in gold price since 2023 and poten-
from a 23-year high. tial push back for rate cuts, we have a neu-
Gold prices may find initial support at tral outlook for gold,” Philip Capital added.
 f r i d a y A P RI L 1 9 , 2 0 2 4 5 TheEdge CEO morning brief

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TONG’S PORTFOLIO CORPORATE CORPORATE THE STATE OF THE NATION TONG’S PORTFOLIO CORPORATE THE STATE OF THE NATION TONG’S PORTFOLIO TECH
Finally, we are investing Good chance of EPF’s Mavcom was Challenges remain for Malaysia’s 5G is now one of JB needs LRT system to disperse Watching the ringgit Is residential Semiconductor veteran
again — added six stocks with 2023 dividend beating shocked to see China’s economy after the world’s best, thanks to traffic coming in from Singapore factor in stronger-than- property in Malaysia turned VC raising US$200 mil
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MATTERS
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TIME TO ACT,
www . t h e e d ge m a l ays i a . co m THE WEEK OF DECEMBER 4 — DECEMBER 10, 2023 www . t h e e d ge m a l ays i a . co m T H E W E E K O F JA N UA RY 1 5 — JA N UA RY 2 1 , 2 0 2 4 www . t h e e d ge m a l ays i a . co m T H E W E E K O F F E B R UA RY 2 6 — M A R C H 3 , 2 0 2 4
1
12

2
The curious case
64 to 69
afizi: Padu long overdue, not an
NEWSBREAK COVER STORY 2 NEWSBREAK

CORPORATE 12 CORPORATE 10

Suria Cap verzealous data collection exercise Consolidation of TPG,

to lease out
Sapangar Bay
Container Port PUTRAJAYA CORPORATE

Edaran n
16
Hong Leong Group and
TE Asia Healthcare’s hospitals
in the works, say sources
of YNH and its JVs
YNH Property Bhd’s RM1.1 billion investment in numerous
in the
B Y J E N N Y N G A N D VASA N T H A G A N E SA N

to DP World The unity government spent its first year fending property development joint ventures over the years has drawn
B Y JOSE BAR RO CK off attempts to topple it, but its grip on Putrajaya cross hairs
rss NEWSBREAK
CORPORATE 10
much public scrutiny. Of particular interest is one involving a
five-acre parcel in Sri Hartamas. YNH justifies the JVs and

Capital gains tax:

appears secure now. As it enters its second B Y J OS E B A R R O C K
clarifies why some of the land is under a Registrar’s caveat.
NEWSBREAK year in power, will it walk the talk on the major
16
Khazanah, EPF and GIP forming 58 to 60
12 reforms to restructure the economy so that CORPORATE
consortium to run MAHB COVER STORY

More than
CORPORATE

Highway
Malaysia is not stuck in the middle-income trap,
or will it be business as usual?
Perple
p exing B Y J OS E B A R R O C K

concessionaires 76 to 80 twistss to
takeovver
ver
COVER STORY NEWSBREAK

want to take charge 12

expected
CORPORATE

of MLFF system offer fo

or KUB
or Five shortlisted for possible
implementation
BY LEE WENG KHUEN
sale of Cement Industries
B Y M SHAN M UG AM CORPORATE 21 B Y I N TA N FA R H A N A Z AI N U L
A N D J OS E B A R R O C K

Investor Yu
A N D I N TAN FAR HANA Z AI N U L

Contrary to what at many had antic

anticipated,
cipated
d
suffers hefty
y
NEWSBREAK
the new tax has a wider scope and broad 12
CORPORATE
FREE! paper
p p loss affter definitions. Many are still grappling DNeX, HeiTech Padu,
with this issue
of The Edge rapid
p fall of with its implications while much
Theta Edge shortlisted

ZAHID IZZANI/THE EDGE

counters clarification is needed on its application.
for NIISe project
COVER STORY I 61 to 63
123RF.COM

B Y I N TA N FA R H A N A Z AI N U L
B Y JOSE BAR RO CK
The yet-to-be-developed land in Sri Hartamas that is subject to a disposal to the Sunway Group

PP 8409/03/2013(031809) MCI (P) 051/11/2023 PP 8409/03/2013(031809) MCI (P) 051/11/2023 PP 8409/03/2013(031809) MCI (P) 051/11/2023
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| t h e b e s t s e l l i n g w e e k ly n e w s P a P e r .
 F R I D AY A P R I L 1 9 , 2 0 2 4
KUALA LUMPUR (April 18): The Ma-
laysian aviation industry may be badly im-
pacted on passenger traffic and spikes in jet
fuel prices if a full-blown war results from
escalating geopolitical tensions in the Mid-
dle East, according to Maybank Investment
Bank Research (Maybank IB).
Malaysia Airports Holdings Bhd
(MAHB) could see up to 26% of its earn-
ings and target price at risk if Middle Eastern
passenger traffic ceases, Maybank IB said in a
note on Wednesday. Meanwhile, airlines like
Capital A and AirAsia X, may also see their
earnings and share prices slashed as they
are more vulnerable to jet fuel price hikes.
“As an airport operator, MAHB has
little to fear from higher jet fuel prices,”
said Maybank IB. However, the concern
lies with passenger traffic to and from the
Middle East, which could significantly im-
pact its operations in Malaysia and Turkey.
This is given that MAHB’s Middle
Eastern traffic accounted for 7% of inter-
national passenger traffic at Kuala Lumpur
International Airport (KLIA) and 28% at
Istanbul Sabiha Gokcen in 2019.
Shares of these counters have declined so
far since the beginning of the week. At the
time of writing, shares in MAHB were down
18 sen or 1.79% to RM9.88, making it one
of the top losers by value on Bursa Malaysia
during active trading on Wednesday. Its mar-
ket capitalisation stood at RM16.49 billion.
KOTA KINABALU (April 18): Malay-
sia Airlines cancelled 19 flights between
the Kuala Lumpur International Airport
(KLIA) and destinations in Sabah and Sar-
awak on Thursday, following the volcanic
eruption at Mount Ruang, Indonesia.
Malaysia Airlines, in a statement, said
11 of the cancelled flights were to and from
Sabah and eight flights involved Sarawak.
Malaysia Airlines will continue to close-
ly monitor developments, and further up-
dates on flight cancellations will be com-
municated directly to affected customers.
“Concurrently, the airline is working to
accommodate passengers affected by the can-
cellation of flights on alternative flights, once
the situation progressively improves,” it said.
Malaysia Airlines also said that passen-
gers are urged to update their contact de-
tails via My Booking on Malaysia Airlines’
website, to receive timely updates from
time to time via email and SMS.
The safety of the passengers and crew
remains of utmost importance to Malaysia
Airlines, it said.
In Putrajaya, AirAsia group chief ex-
ecutive officer Bo Lingam said affected
AirAsia passengers can move their flights
by making a one-time change to any new
travel date within 30 days from the original
6 THEEDGE CEO MORNING BRIEF
H O M E
Malaysia’s
aviation industry
at risk amid full-
blown crisis in
Middle East —
Maybank IB
BY LUQMAN AMIN
theedgemalaysia.com
Meanwhile, shares in Capital A Bhd
were traded unchanged at 67 sen, valuing
the group at RM2.85 billion. AirAsia X
Bhd shares, on the other hand, were traded
a sen or 0.8% higher at RM1.26, giving it a
market capitalisation of RM563.31 million.
Maybank IB noted that Capital A —
which operates four airlines, none of which fly
to Middle Eastern destinations — could see
a significant impact on earnings with every
US$1 per barrel increase in jet fuel prices.
“We estimate that every US$1/barrel
increase in jet fuel price will affect our core
net loss/profit estimate by RM50 million
and trim our sum-of-parts (SOP) target
price (TP) by three sen,” Maybank IB said.
Malaysia Airlines,
AirAsia and Batik
Air cancel flights to
Sabah, Sarawak after
volcano eruption
in Indonesia
Bernama
REUTERS
Hot lava flows from Mount Ruang volcano during
an eruption in Sitaro, North Sulawesi province
April 17, 2024.
Still, Capital A can pass on higher fuel
cost to passengers given that MYAirline
has suspended operations in October 2023,
Maybank IB noted. “Thus far, Malaysia
AirAsia (MAA, which contributes over
80% to the group earnings) has been able
to charge higher fares without being overly
impacting load factor”.
Similarly, AAX, which operates flights
to Jeddah, Saudi Arabia, is highly sensitive
to fuel price fluctuations, with potential
reductions in net profit estimates and tar-
get price for every US$1/barrel increase.
Maybank said, “while Malaysia AirAsia
has been able to pass on higher fuel costs
to passengers without affecting load fac-
tors, AAX may not be as successful due
to lower demand for its medium to long
haul flights compared to Malaysia AirA-
sia’s short haul flights,”
“We estimate that every US$1/barrel in-
crease in jet fuel price will reduce our core
net profit estimates by RM14 million and
lower our SOP-TP by 24 sen,” it added.
Brent, the global benchmark for crude
oil, has risen above US$90 (RM430.87)
per barrel as Iran launched retaliatory
strikes on Israel over the weekend. The
Iranian strikes were in response to an air-
strike on the Iranian consulate in Damas-
cus, Syria on April 1, attributed to Israel,
which killed several military officers and
some civilians.
departure date on the same route without
additional cost, subject to seat availability.
“They can also retain the value of the
flight booking in the guest’s Airasia Rewards
member account for future travel with AirA-
sia to be redeemed within 730 calendar days
(two years) from the issuance date. “The trav-
el date of the new booking can fall on any date
within the published flight schedule on aira-
sia.com,” he said in a statement on Thursday.
AirAsia flights to and from nine airports,
namely Kota Kinabalu, Tawau, Sandakan,
Labuan, Miri, Sibu, Bintulu, Kuching and
Brunei, are affected by the cancellation
starting 10am Thursday until 8am Friday.
Read the full story
Read also:
AirAsia reinstates several flights on
Thursday after Indonesia’s volcanic
eruption
Volcanic eruption: Malaysia Airlines
offers one-time change or full refund to
affected passengers
 F R I D AY A P R I L 1 9 , 2 0 2 4 7 THEEDGE CEO MORNING BRIEF

H O M E

KUALA LUMPUR (April 18): Australia
brought 23 companies seeking investment
in maritime decarbonisation and renew-
able energy (RE) sectors to Malaysia as
part of the Australia-Southeast Asia Busi-
ness Exchange programme.
Its assistant minister for Trade and
Manufacturing Senator Tim Ayres said
the mission is to project Australia’s com-
parative advantage as a renewable ener-
gy superpower to support the Southeast
Asian region’s transition to low-cost and
zero-emissions energy.
“Australia has enormous capability in
solar and wind and mining and resourc-
es capability. We have historically been a
partner for Malaysia and countries in the
region in the provision of coal and liq-
uefied natural gas (LNG) to support the
industrial development of the region,” he
told reporters at a press conference here
on Thursday.
“We are a big exporter of iron ore and
we possess all of the minerals that are re-
quired in the clean energy transition. So
we have a set of natural advantages and
capital that we want to deploy in Australia
to affect the lowest cost, fastest transition
to be a renewable energy superpower for
the region,” Ayres added.
Ayres noted that Australia’s major
shipping companies and heavy indus-
try exporters recognise that they need
to move to zero-emission ships as it is an
important part of reducing their carbon
footprint. As such, these companies are
looking to engage with Malaysian com-
panies to build low-cost, low-emissions
ships, he said.
“That is why there is so much inter-
est in Malaysia and Singapore, two of
the great maritime hubs in one of the
Australia brings
23 firms looking to
invest in maritime
decarbonisation,
RE sectors in
Malaysia
BY EMIR ZAINUL
theedgemalaysia.com
ZAHID IZZANI/THE EDGE
Australian assistant minister for Trade and
Manufacturing Senator Tim Ayres said the
mission is to project Australia's comparative
advantage as a renewable energy superpower to
support the Southeast Asian region's transition to
low-cost and zero-emissions energy.
strongest maritime zones on the globe.
“I’m looking forward to the next com-
ing years of investment and activities in
this area. It’s going to deliver a lot of in-
vestments and a lot of jobs, and I want to
make sure that Australia and the Asean
region are in the race for that investment
and jobs,” Ayres added.
Australia’s Cochlear to further
expand manufacturing in Malaysia
As part of the business mission, Ayres vis-
ited Cochlear’s manufacturing, servicing
and corporate facility here. Cochlear is an
Australian company that manufactures
and supplies implantable hearing devices.
Cochlear commenced its Malaysian
operations in 2014 and employs more
than 400 people at its Kuala Lumpur site,
making it the third largest site in Coch-
lear’s global network, after Australia and
the US.
Cochlear is currently undergoing an
expansion of its manufacturing site in
Malaysia involving a capital investment
of RM10 million, according to Cochlear
Malaysia vice president of manufactur-
ing and logistics Samuel Pooranakaran.
Pooranakaran said that Cochlear has so
far invested RM50 million into Malaysia
for its manufacturing site.
With the expansion, it is looking to
increase its staff to 600 employees com-
prising highly qualified engineers and en-
try-level workers.
In 2022-23, Malaysia was Australia’s
second largest trading partner among Ase-
an member states and eighth largest part-
ner overall, according to the Australian
Department of Foreign Affairs and Trade.
Australia is Malaysia’s 10th largest trading
partner. Total two-way trade in 2022 was
valued at A$33.5 billion (approximately
RM103.24 billion).
Established Australian retail brands
in Malaysia include Aesop, Blackmores,
Boost Juice, Cotton On, Harvey Norman,
and King Living.

KUALA LUMPUR (April 18): Digital
payment and financial technology provid-
er Ant International is going to establish
what it calls a new digital business centre
in Malaysia, creating more than 500 job
opportunities in the first year, with more
hirings in the next four years until 2028.
The new business centre will move into
The Exchange 106 at the heart of the Tun
Razak Exchange financial and business hub
by 2025, according to Ant International
president Douglas Feagin in a statement
on Thursday.
The majority of the roles created will
be tech-focused, and the biggest team it
is hiring for is technology and develop-
ment — where it will need a range of soft-
ware development engineers — followed
by product and design, and data science
and risk control.
The company plans to commit dedicat-
laysian government promoting tech skills
Ant International development and positioning Malaysia
as an innovation hub, we believe that
to set up new together with partners like MDEC (Ma-
laysia Digital Economy Corp), we can
business centre in harness local tech talents to significantly
accelerate the impact that our businesses
Malaysia, creating can make, locally and around the world,”
Feagin said.
over 500 jobs “Those who join our team will have a
front-row seat to global fintech innovation
and collaborations, and play a part in our
BY LUQMAN AMIN mission to shape the future of fintech and
theedgemalaysia.com commerce, where every person and every
business can thrive. With a focus on sup-
ed resources to developing and nurturing porting the development and growth op-
these tech talents through comprehensive portunities of our employees, we not only
training, mentorship and exposure to its strengthen our team, but also contribute to
global businesses. the growth and advancement of the fintech
“Tech and innovation are at the heart industry in Malaysia,” he added.
of Ant International, and with the Ma- CO N TI N U ES O N PAGE 8
 F R I D AY A P R I L 1 9 , 2 0 2 4
KUALA LUMPUR (April 18): Bursa Ma-
laysia Bhd’s wholly-owned Bursa Carbon
Exchange (BCX) will hold its inaugural
auction of renewable energy certificates
(RECs) on June 25 to support Malaysia’s
energy transition plans and corporates’
net-zero aspirations.
RECs are issued when one mega-
watt-hour (MWh) of electricity is gener-
ated and delivered to the electricity grid
from a renewable energy (RE) source. By
procuring RECs, businesses ensure that
the electricity they consume comes from
renewable sources.
The RECs in this auction are to be
supplied by Sarawak Energy Bhd, via its
944MW Murum hydropower plant, and
issued under the I-REC Standard, a glob-
ally recognised standard body, according
to the bourse operator.
“This auction marks a significant step
towards the transition of BCX to be a one-
stop, Shariah-compliant, multi-environ-
mental product exchange,” Bursa Malaysia
said in a statement on Thursday.
“RECs are a new product offering by
BCX, that first started enabling the trading
FROM PAG E 7
MDEC chief executive officer Ma-
hadhir Aziz said Ant International’s
new business centre is a testament to
its commitment to choosing Malaysia
as a preferred country in the mission
to propel the digital economy.
Ant International, which has been
present in Malaysia since 2014, is an
affiliate of Ant Group, which can trace
its roots back to Alipay since 2004,
and is one of the world’s leading
open internet platforms. It has four
key businesses: Alipay+ cross-border
mobile payment service, Antom mer-
chant payment service, WorldFirst, and
ANEXT Bank.
Notable among its collaborations
with local partners is its partnership
with TNG Digital, through which Ant
International enabled users of Touch ‘n
Go eWallet to make payments around
the world.
Ant International has also recently
formed a strategic partnership with
Capital A Bhd to promote inclusive
and sustainable impact to address
global challenges, including advanc-
ing digital inclusion, cultivating digital
talents, and promoting a sustainable
travel programme. It is also integrat-
ing its Alipay+ e-wallets as payment
options within Capital A’s MOVE
payment flows, while BigPay is set
to become Alipay+’s latest payment
partner.
8 THEEDGE CEO MORNING BRIEF
H O M E
THE EDGE
Bursa to hold
auction of maiden
RE certificates
on June 25
BY IZZUL IKRAM
theedgemalaysia.com
of carbon credits in September 2023. This
underscores Bursa Malaysia’s progress as
a multi-asset exchange in demonstrating
access to and creating new opportunities
MAA Group exits
legal bout over
2021 Turiya share
acquisition under
settlement deal
BY IZZUL IKRAM
theedgemalaysia.com
KUALA LUMPUR (April 18): After spend-
ing over two years in court due to a suit from
Empire Holdings Ltd, MAA Group Bhd,
its major shareholder Tunku Datuk Yaacob
Khyra and Turiya Bhd have been dropped
as parties in the suit over MAA’s purchase
of Turiya shares from a Bahrain-based bank.
It is understood that the only parties re-
maining in the case are Empire as the ap-
pellant, and Bahrain-based Ithmaar Devel-
opment Co Ltd and Ithmaar Bank BSC as
respondents.
This was per a consent judgement re-
corded before the Court of Appeal (COA),
whereby Empire agreed to drop MAA,
Yaakob and Turiya as parties in the appeal
without liberty to file afresh, according to
a bourse filing on Thursday.
The suit revolved around MAA’s purchase
of a 57.78% stake in Turiya from Ithmaar
Bank back in June 2021.The move sparked
for the market through additional types
of asset classes, investment and trading
choices,” it added.
Bursa Malaysia CEO Datuk Muhamad
Umar Swift said the bourse operator con-
tinues to play a pivotal role in enabling the
nation’s implementation of policies and
key projects through the capital market.
“RECs will support Malaysia’s National
Energy Transition Roadmap (NETR) which
targets to substantially increase the country’s
renewable energy capacity,” he said.
“Within a few months of starting car-
bon trading, we have been quick to expand
BCX offerings to offer another comple-
mentary product in the form of RECs.
These two environmental products will
serve to provide Malaysian corporates
choices when allocating capital for climate
action financing,” he added.
According to BCX’s website, the auction
is to be held over two sessions on June 25,
with a minimum volume of 1,000 RECs, with
a minimum incremental bid of one REC.
Entities that wish to participate in the
auction must be onboarded as an approved
participant of BCX.
a legal saga in which Empire argued that it
owned the Turiya shares and that Ithmaar
Bank merely held the shares by way of charge,
as well as claimed that the bank breached
their agreement by selling the shares to MAA.
Empire filed the suit against the five in
July 2021, seeking declarations that Ith-
maar Development and Ithmaar Bank had
breached their duties as lenders by selling
the Turiya shares, and that the sale was null,
void, invalid and/or rescinded.
Coupled with this, Empire sought an or-
der for the shares to be transferred back to it,
as well as damages from all five defendants.
Following the failure of Empire’s compli-
cated bid over an injunction against MAA
selling, acquiring and exercising the Turiya
shares, the High Court in March 2024 de-
cided in favour of the defendants and dis-
missed Empire’s suit.
Empire had later appealed the High
Court’s decision, which led to this latest
development, whereby it has been agreed
for MAA,Yaacob and Turiya to be dropped
as parties in the appeal.
Previously, the COA had fixed for the
appeal to be heard on July 26, 2024.
MAA remains Turiya’s largest sharehold-
er, with the 57.78% stake.
Shares in MAA ended 1.5 sen or 4.29%
higher at 36.5 sen on Thursday, giving
the company a market capitalisation of
RM94.93 million.
Meanwhile,Turiya shares closed 7.5 sen
or 26.32% at 36 sen, valuing the company
at RM82.34 million.
 F R I D AY A P R I L 1 9 , 2 0 2 4 9 THEEDGE CEO MORNING BRIEF

H O M E

SAM FONG/THE EDGE

KUALA LUMPUR (April 18): ACE Mar-
ket-bound Sin-Kung Logistics Bhd, which
launched its initial public offering (IPO) on
Thursday, said that demand for trucking
services remains intact amid higher logis-
tics costs and economic uncertainty.
The company plans to pass on costs in-
creases to its customers if higher oil prices
persist and diesel subsidy rationalisation
is implemented, Sin-Kung managing di-
rector Alan Ong said at a press conference
following the prospectus launch.
“As far as we are concerned, currently
there is no rise in diesel prices,” Ong said.
“As in the future, if this has come, we have
to pass [on the cost increase] to customers.”
Malaysia is planning to withdraw subsi-
dies for fuel and other non-essential items
widely panned by economists for being
wasteful as part of a broader effort to rein
in its long-running fiscal deficit that stretch-
es back to the 1998 Asian Financial Crisis.
The government currently caps the
prices of diesel and RON95, the most
widely-used petrol variant, while the higher
grade RON97 is based on market prices.
Despite the threat of higher costs, Sin-
Kung is confident that the company will
continue to ride on continuous demand
from its customers willing to pay a premi-
um for its service, Ong said.
“Our customers want very demanding
services, so they are willing to pay [us]
more,” he said.
Sin-Kung currently provides trucking ser-
vices with a focus on airport-to-airport road
Sin-Kung Logistics Bhd managing director Alan
Ong is confident that the company will continue
to ride on continuous demand from its customers
willing to pay a premium for its service.
Boost from Red Sea crisis
Ong noted that any disruption to ocean ship-
ping, such as the Red Sea crisis sparked by
attacks by Houthi militants, may boost the
company’s services as most of its customers
opt for air cargo due to delays in sea freight.
Most customers and shippers will then
Sin-Kung expects “have to use air freight instead of sea freight for
faster services”, he said. “Most of our custom-
demand for ers, like the airlines, benefit from this,” he said.
En route to go public on May 15, Sin-
trucking services Kung expects growth of the electrical and
electronics (E&E) industry to support the
to stay intact amid air freight industry as E&E products are
generally high-value items commonly
higher logistics transported through air freight.
“This will in turn create demand for
costs, economic trucking services, including airport-to-air-
port road feeder services and point-to-
uncertainty point trucking services, to facilitate the
movement of E&E products between, and
to or from, airports,” he added.
BY ANIS HAZIM The company plans to acquire an office
theedgemalaysia.com and expand its warehouse that will add
an additional annual capacity of 192,000
feeder services covering airports across Pen- pallets when operations begin by the end
insular Malaysia, Singapore and Thailand. of 2026, using its IPO proceeds.
Its major customers include airlines,
sales agents of airlines, local and interna-
tional freight forwarders, manufacturers Read also: Sin-Kung Logistics launch-
and online retailers. es ACE Market IPO to raise RM39.5 mil

KUALA LUMPUR (April 18): AwanBiru
Technology Bhd (Awantec) said trading in
its shares will be suspended from April 26,
after the group failed to submit its regular-
isation plan to the regulators for approval
within the stipulated timeframe.
In an exchange filing on Thursday, the
software service provider said it was re-
quired to submit the regularisation plan to
Bursa Malaysia Securities within the ex-
tended timeframe that ended on April 13.
Awantec said the group faces the risk of
delisting if no appeal is submitted within
five market days from the date of notifi-
cation of delisting.
Awantec, previously known as Prestar-
iang Bhd, had to submit a regularisation
plan after being classified as an affected
listed issuer in January 2021 due to the
termination of its wholly owned unit Pre-
stariang Systems Sdn Bhd’s membership
in the Microsoft Partner Network.
On April 8 this year, Awantec said it
had applied to the regulators for a waiver
from the requirement to submit a regular-
isation plan, citing recent improvements in
financial performance. It had also applied
Awantec faces
trading suspension
from April 26 after
failing to submit
regularisation
plan
BY CHOY NYEN YIAU
theedgemalaysia.com
for an uplifting of its affected issuer status,
the group said.
Awantec also requested a six-month ex-
tension until Oct 13 to submit the regular-
isation plan, in case the waiver and re-clas-
sification applications are not approved.
For the six-month period ended Dec
31, 2023, the group posted a net profit of
RM1.19 million compared to a net loss of
RM4.31 million a year earlier, as revenue
increased 9.7% to RM28.63 million from
RM26.1 million.
Awantec recently gained attention after
winning RM231.55 million in its lawsuit
against the government over the termina-
tion of the RM3.5 billion National Immi-
gration Control System (SKIN) project in
March, followed by an appeal in early April.
The group’s wholly owned unit Pre-
stariang Skin Sdn Bhd (PSKIN) secured
the SKIN project in August 2017 under
the then prime minister Datuk Seri Najib
Razak-led Barisan Nasional government,
to replace the Malaysian Immigration
System (myIMMs).
In December 2018, the then Pakatan
Harapan government helmed by Tun Dr
Mahathir Mohamad decided to scrap the
project, in favour of a new system to save
government funds. Despite several rounds
of negotiations, both parties failed to reach
a consensus on the quantum to be paid
by Putrajaya, leading to PSKIN seeking
recourse via the legal system.
Shares in Awantec closed unchanged
at 32 sen on Thursday, giving the group a
market capitalisation of RM252.77 million.
 F R I D AY A P R I L 1 9 , 2 0 2 4
Revamp needed
for TVET
ecosystem to
reduce mismatch,
says FMM
president
BY SYAFIQAH SALIM
theedgemalaysia.com
KUALA LUMPUR (April 18): Malaysia
needs to restructure the whole ecosystem
of technical and vocational education and
training (TVET) programmes, so that it
can effectively meet the industry’s require-
ments, said Federation of Malaysian Man-
ufacturers (FMM) president Tan Sri Soh
Thian Lai.
“The issue now is about how we can
reduce the mismatch [between the syllabus
and industry needs]. There are too many
TVET institutions currently, where only
some can meet the needs of the industry,
while others cannot. If the syllabus is not
relevant, we can inform the government.
“Let us say in Penang and northern
regions, where the industries are more fo-
cused on electrical and electronics (E&E),
the TVET institutions should focus more
on relevant courses related to E&E. In Tan-
jung Malim, Perak, they should focus more
on the automotive industry, while Selangor
can focus on data centres,” Soh said at a
press conference on Thursday.
Soh was speaking at the event host-
ed by the Government-Industry TVET
Coordination Body (GITC), which he
chairs. Notably, this was the body’s first
press conference since its establishment
in October 2022.
The GITC’s role is to drive the indus-
try-led TVET empowerment agenda, and
play the key role of being a unified source
of inputs from the industry towards the
development of TVET in the country. The
organisation acts as a coordinator and fa-
cilitator for inputs to be channelled to min-
istries or agencies and TVET providers.
Soh also highlighted several short-
comings in the current TVET ecosystem,
among them a lack of sustainable coor-
dination and collaboration mechanisms
between industries at the national level,
insufficient industry response to TVET in-
itiatives, and limited industry engagement
across each state.
In addition, he takes the view that
TVET students should have a more “work-
based approach”.
10 THEEDGE CEO MORNING BRIEF
H O M E
ZAHID IZZANI/THE EDGE
Federation of Malaysian Manufacturers
president Tan Sri Soh Thian Lai takes the
view that TVET students should have a
more ‘work-based approach’.
“Sixty per cent of TVET students’ sylla-
bus should prioritise industry experience,
with the remaining 40% on the academic
aspects,” he explained.
The GITC chairman also added that
Malaysia had been slow in enhancing its
skilled workforce, as compared to neigh-
bouring countries.
Despite that, he added, Malaysia is still
among the top 20 trading nations, and its
economic growth is projected to be pos-
itive this year.
Other members of the GITC board in-
clude Datuk Dr Megat Sany Megat Ahmad
Supian from the Ministry of Higher Educa-
tion, Datuk P’ng Soo Hong from the Malay-
sia Semiconductor Industry Association, and
Datuk Astaman Abdul Aziz from the Master
Builders Association of Malaysia.
Changing parental beliefs to tackle
low TVET enrolment
Soh further pointed out that TVET insti-
tutions face challenges of low enrolment.
This issue stems from parental beliefs that
TVET does not offer opportunities for
high-paying careers, and is primarily for
students who are unable to get an admit-
tance into universities.
“The GITC aims to shift this mindset,
particularly among parents, by portraying
TVET as a pathway to valuable skills and
professions. We are striving to create a fu-
ture where TVET is embraced and seen as
a viable option. We admit that we are run-
ning out of time, but we are now moving
to the execution phase,” he said.
Among the initiatives that will be under-
taken by the GITC is the establishment of
the GITC Placement Centre by September,
which is intended to facilitate internships
and job opportunities for TVET graduates.
Additionally, industry leaders will con-
duct career talks and job fairs in October
to develop more dynamic internship pro-
grammes.
Read the full story
NEWS IN BRIEF
New business total premiums up
11.6% in 2023, says Life Insurance
Association of Malaysia
KUALA LUMPUR (April 18): The life insurance
industry recorded a double-digit growth of 11.6%
in new business total premiums to RM13.4
billion last year, compared with RM12 billion in
2022. The Life Insurance Association of Malaysia
(LIAM) said the growth was driven by the strong
performance of group policies (up 14.5% to
RM5.1 billion) and investment-linked policies
(growing 13.6% to RM6.2 billion). The overall
new business sum assured saw a 9.4% growth to
RM544.4 billion in 2023, from RM497.7 billion
in the previous year, LIAM said in a statement
on Thursday. LIAM said the new business sum
assured of investment-linked policies registered a
double-digit growth of 13.4% to RM155.8 billion,
followed by that of group policies by 10.3% to
RM368.8 billion. “Meanwhile, the number of
new investment-linked policies rose by 6.8%
to 709,378, and new group policies increased
by 5.8% to 21,975 last year. “However, new
traditional policies recorded a decline of 56.9%,
from 1.2 million in 2022 to 496,115 in 2023,
resulting in the overall number of policies falling
33.2% to 1.2 million in 2023, compared with 1.8
million in 2022,” it added. — Bernama
Kimlun bags RM150 mil contract
for residential construction project
in Johor
KUALA LUMPUR (April 18): Kimlun Corporation
Bhd has bagged a construction contract worth
RM150 million for a serviced apartment
development project in Johor Bahru. In a bourse
filing on Thursday, Kimlun said its wholly-owned
subsidiary Kimlun Sdn Bhd received the award as
the main contractor for the Aliva Mount Austin
residential project from Astaka Development
Sdn Bhd, a subsidiary of Singapore-listed Astaka
Holdings Limited. “The construction work is
expected to be completed in the fourth quarter
of 2026,” it said. In a separate statement, Astaka
said the project, which sees an estimated gross
development value (GDV) of RM254 million, has
achieved a 70% take-up rate since its commercial
launch in December last year. While the response
from local buyers had been positive, its executive
director and chief executive officer Allen Khong
said there had been an increase in international
buyers, particularly from Singapore, who are
actively looking for properties in Malaysia as
their second home or investment. “In light of this,
we have successfully applied to the Johor state
government to reduce the minimum threshold
for foreigners to purchase property to start from
RM500,000. We expect these factors to further
accelerate the take-up rate for Aliva,” he said. In
Johor, the minimum threshold for foreigners to
purchase real estate is RM1 million.
— by Hee En Qi
 F R I D AY A P R I L 1 9 , 2 0 2 4 11 THEEDGE CEO MORNING BRIEF

H O M E

NEWS IN BRIEF

BLOOMBERG
Scam calls received by Malaysians
doubled in 2023 — Whoscall report
KUALA LUMPUR (April 18): Scam calls
received by Malaysian users have more
than doubled in 2023 compared to 2022,
according to TrustTech service provider
Topmix posts RM2.84 mil net profit in 4Q ahead of ACE Market listing
KUALA LUMPUR (April 18): Surface decorative products company Topmix Bhd
reported RM2.84 million net profit on the back of RM21.64 million revenue for the
fourth quarter ended Dec 31, 2023 (4QFY2023), ahead of its listing on Bursa Malaysia’s
ACE Market. For the full FY2023, Topmix registered RM8.39 million net profit on the
back of RM72.68 million revenue mainly due to the sales of high pressure laminate
(HPL) products which represented 95.15% of the total revenue. In line with the top line
growth, gross profit (GP) came in at RM26 million, translating into a healthy GP margin
of 35.8%, according to the company’s statement. There are no comparative figures for
the preceding corresponding quarter and year as this marks the first interim financial
report in accordance with ACE Market listing requirements. Topmix’s IPO has been
oversubscribed 58.61 times by the Malaysian public. Upon its listing on April 23, the
company will have a market capitalisation of RM122.1 million based on the issue price of
31 sen and the enlarged share capital of 393.9 million shares. — by Syafiqah Salim
UMEDIC.COM.MY

Gogolook. In a statement on Thursday, Bursa approves UMediC’s transfer

Gogolook said its digital anti-fraud tool
Whoscall had identified 1.63 million scam
calls received by Malaysian users in 2023,
representing an increase of 100.92%
from over 812,000 calls in 2022. “Out of
seven Asian countries, Malaysia is the
second top country seeing an increase in
scam calls after Hong Kong, followed by
Japan taking the third spot,” said Gogolook
Malaysia’s country marketing lead Man
Yong. However, other countries such as
Taiwan, Thailand, South Korea and the
Philippines witnessed a decrease in scam
calls, according to the company. Gogolook
further pointed out that 10.4% of users
still chose to pick up calls flagged as scams.
“We would like to remind our users not
to entertain any calls tagged as ‘scam’
and to immediately take action to block
to Main Market
KUALA LUMPUR (April 18): Bursa Malaysia
Securities Bhd has approved the transfer of
UMediC Group Bhd’s listing status from the
ACE Market to the Main Market, under the
‘health care’ sector. “The transfer will take
effect immediately two market days upon
the announcement to Bursa Securities on
the transfer date via Bursa Link,” said the
medical device distributor and manufacturer reflect its current scale of operations. “This,
in a bourse filing on Thursday. In a previous in turn, is expected to improve the liquidity
filing, UMediC said that it is deemed to have and marketability of UMediC shares,” it said
met the requirements for the transfer — in the past filing. The group was listed on the
namely the profit, financial position and public ACE Market on July 26, 2022. It booked a
shareholding spread requirements. The group net profit of RM10.36 million and revenue of
believes its transfer to the Main Market would RM45.43 million for the financial year ended
enhance its credibility and recognition, and July 31, 2023 (FY2023). — by Anis Hazim
SYSTECHASIA

the number,” said the company, which has
partnered with the Royal Malaysian Police
(PDRM) to combat fraud in Malaysia.
— by Hee En Qi
Pansar bags RM269 mil job to
upgrade water treatment plant
in Sarawak
KUALA LUMPUR (April 18): Pansar Bhd
has secured a contract worth RM269.1
million to upgrade the capacity of a water
treatment plant in Sibu, Sarawak. The
construction and infrastructure outfit
secured the job from Lembaga Air Sibu
via an open tender, through its wholly
owned Perbena Emas Sdn Bhd. In a bourse
filing, Pansar said the 30-month job from
May this year requires it to upgrade the
capacity of the Salim Water Treatment
Plant from its current 150 million litres
per day (MLD) to 300 MLD. Pansar shares
dipped half a sen or 0.87% to close at 57
sen on Thursday, giving the group a market
capitalisation of RM280.87 million. — by
Izzul Ikram
Systech gets shareholders’ nod for
acquisition, bonus shares issue
KUALA LUMPUR (April 18): IT services
firm Systech Bhd said on Thursday that
shareholders have approved several
proposals, including an acquisition and bonus
shares issue. Shareholders have endorsed
the acquisition of Wilstech Sdn Bhd for
RM20 million in cash and RM55 million in
shares at 36 sen apiece, the company said in
a statement. The company has also secured
approval for a one-for-four bonus warrants
issue, Systech said. The proposed acquisition
“creates synergies with our existing offerings,”
said executive director Teoh Keng Chang.
“With Wilstech, a one-stop B2B IT specialist,
on board, we can expand and diversify our
customer base while streamlining resources
and unlocking new business opportunities,”
he added. The acquisition of Wilstech also
comes with a profit guarantee by the seller of
an audited profit after tax of at least RM5.0
million for a year, he noted. Systech also
secured approval to issue up to 144.0 million
new shares and to set up an employees’
share scheme of up to 15% of the total
number of issued shares. The proposals
are expected to be completed by the first
half of 2024, the company said. “Following
shareholders’ approval on the proposals,
we will have stronger resources to deliver
the contracts on hand for the provision of
artificial intelligence and Internet of Things
solutions under our corporate solution
business segment,” Teoh added. Shares in
Systech were unchanged at 49.5 sen at
the time of writing on Thursday, valuing
the company at RM1.18 billion.
— by Luqman Amin
 F R I D AY A P R I L 1 9 , 2 0 2 4
KUALA LUMPUR (April 18): Malaysian
civil society group Bersih, or the Coalition
for Clean and Fair Elections, has slammed
the deputy public prosecutor (DPP)’s of-
fice, which falls under the Attorney Gen-
eral’s Chambers (AGC), for not objecting
to former prime minister Datuk Seri Najib
Razak’s application to bar the media from
covering his judicial review application, as
he sought to be placed under house arrest
for the duration of his jail sentence.
In a statement to the media, the coali-
tion said that given the high-profile person
in the case and the involvement of public
interest and funds, as previously decided
by the Federal Court, it is necessary for
the matter to be tried openly and trans-
parently for public knowledge.
“At the same time, Bersih also questions
why the DPP did not object to the appli-
cation (to prohibit media from covering
the court proceedings), and is of the view
that they should explain to the public their
reasons for not objecting.”
“Proceedings of such high-profile cases
should be transparent and open because the
public has the right to know the true status
of the case. If [they’re] not, it may give rise
to perceptions of double standards that can
erode public confidence in the government
and our justice institutions,” it said.
It said the principles of equal justice
and transparency must always be upheld as
the main principles to preserve the justice
system and the rule of law in the country.
This comes after the High Court on
Wednesday (April 18) allowed Najib’s ap-
plication to bar the media from covering
his judicial review leave application.
KUALA LUMPUR (April 18):The Malay-
sian Bar argued in court that its challenge
against Deputy Prime Minister Datuk Seri
Dr Ahmad Zahid Hamidi’s conditional dis-
charge is not academic as it may determine
the fate of the Yayasan Akalbudi graft case.
During the leave hearing on Thursday
before High Court judge Datuk Amarjeet
Singh Serjit Singh, Datuk Ambiga Sreene-
vasan, the counsel for the Bar, stressed that
the organisation’s legal action against the
DPM and the Attorney General’s Cham-
bers (AGC) is consequential.
If the decision to grant Zahid a discharge
not amounting to acquittal is quashed, the
AGC is “compelled to go back and continue
the trial,” she said. “There is still something
that can rectify the situation.”
“So much work was done...to just come
and give the reasons that have been given
— the hard work would go to waste just be-
cause someone is screaming political prose-
cution. This is about the administration of
justice,” she said.
12 THEEDGE CEO MORNING BRIEF
H O M E
Bersih slams AGC
for not objecting
to media ban
in Najib’s house
arrest bid
BY TIMOTHY ACHARIAM
theedgemalaysia.com
Tan Sri Muhammad Shafee Abdullah,
Najib’s lead counsel, asked judge Datuk
Amarjeet Singh that the matter be declared
a chambers matter and the media be pro-
hibited from reporting the proceedings due
to the sensitivity of the subject matter.
Amarjeet allowed Shafee’s request.
Najib, in his application, is seeking leave
for an order that he be placed under house
arrest for the remainder of his jail sentence.
Originally sentenced to spend 12 years in
jail and fined RM210 million after being
found guilty of abuse of power, criminal
breach of trust and money laundering in-
volving RM42 million of SRC Interna-
tional Sdn Bhd’s funds, the Pardons Board
halved his jail term and reduced his fine
to RM50 million in February this year.
Najib is also seeking a mandamus or-
der for an addendum order dated Jan 29
this year — purportedly issued by the 16th
Yang di Pertuan Agong Al-Sultan Abdullah
Ri’ayatuddin Al-Mustafa Billah Shah, who
chaired the Pardons Board then — which
Malaysian Bar: Legal
challenge against
AG’s decision to drop
charges against Zahid
is not academic
BY TARANI PALANI
theedgemalaysia.com
ZAHID IZZANI/THE EDGE
allegedly stated that Najib be allowed to
serve the rest of his jail term under house
arrest, to be produced before him (Najib)
and for it to be implemented.
Najib had named the Federal Territo-
ries (FT) Minister, the FT Pardons Board,
the Home Minister, the Attorney Gener-
al, the Prisons Department commissioner
general, the government, and Minister in
the Prime Minister’s Department (Law
and Institutional Reform) as respondents.
Prior to this, Shafee had indicated to the
court that a critical witness had affirmed
the affidavit in support of the application,
which turned out to be Deputy Prime Min-
ister Datuk Seri Dr Ahmad Zahid Hamidi.
In his affidavit, Ahmad Zahid said that
Trade and Industry Minister Tengku Da-
tuk Seri Zafrul Abdul Aziz had shown him
the addendum — a document protected
under the Official Secrets Act — at Ah-
mad Zahid’s house in January, on Tengku
Zafrul’s phone.
In an immediate response, Tengku Za-
frul issued a statement to say that Zahid’s
affidavit contained “certain factual errors”,
and that he would be seeking legal advice
and writing to the court to seek leave to
file an affidavit to correct those errors. He
did not specify what those errors were.
He said this was to “ensure that the
factual record is properly reflected and re-
corded, so that all parties and in particular,
the High Court, is properly appraised of
all material facts”.
Following Tengku Zafrul’s statement,
the AGC said it would bring the matter
to the court’s attention in a brief one-par-
agraph statement.
Ambiga added that the Bar’s action
was to ensure that institutions are held
accountable.
In a decision that drew brickbats from
many quarters, the prosecution in the
DPM’s criminal breach of trust, corrup-
tion, and money-laundering case informed
the court of their intention to discontin-
ue and drop all 47 charges against Zahid
even though his defence had been called.
Presiding judge Datuk Collin Lawrence
Sequerah had handed down a discharge
not amounting to acquittal, or DNAA, to
the Umno president, as opposed to the
defence’s request for a full acquittal.This
means that Zahid can still be charged for
the same charges in future.
The Bar is challenging the AGC’s decision
to discontinue the trial via a judicial review.
Among others, they are seeking an order to
quash the AGC’s decision to seek a DNAA.
Read the full story
 F R I D AY A P R I L 1 9 , 2 0 2 4
Putrajaya
mulling MOU
with Opposition
to facilitate direct
allocations
BY ADAM AZIZ
theedgemalaysia.com
GEORGE TOWN (April 18):The Penang
government will wait for recommendations
from the undersea tunnel project steering
committee before making any decision re-
garding the implementation of the project,
said Chief Minister Chow Kon Yeow.
He said that the committee would first
examine the presentation by the Penang
Port Commission (PPC) regarding the
expansion plan of the North Butterworth
Container Terminal, which would also
affect the project.
“The PPC recently briefed state exec-
utive council members on its master plan
to expand port facilities, which may also
affect the proposed tunnel project.
“Whether to proceed with the tunnel
project, or make amendments to the align-
ment or the design, I believe the steer-
ing committee, led by state Infrastructure
and Transport Committee chairman Zairil
Khir Johari, will examine and provide rec-
ommendations for the state government’s
consideration and decision,” Chow told a
press conference at his office in Komtar
on Thursday.
The 6.5km-long undersea tunnel pro-
ject is among those included in the RM46
billion Penang Transport Master Plan.
Meanwhile, Chow said that the fifth
edition of the Penang Hill Fes-
tival will be held from July 19
to 21 featuring various inter-
esting programmes, including
the Penang Hill Songwriting
Competition, which offers
cash rewards of RM3,000 for
the winner, RM1,500 for the first
runner-up, and RM800 for the second
runner-up.
13 THEEDGE CEO MORNING BRIEF
H O M E
KUALA LUMPUR (April 18):The ruling
coalition government is drafting a memo-
randum of understanding (MOU) to fa-
cilitate the channelling of fund allocations
to Opposition MPs.
This follows the unity government’s sen-
ior leadership council secretariat meeting
on Wednesday, which agreed in principle
to consider the channelling of allocations
to Opposition MPs, said unity government
chief whip Datuk Seri Fadillah Yusof.
“Towards that, a draft MOU will be
structured and passed to the Opposition
for the next stage of negotiations.
“The matter was agreed upon in
a meeting that lasted over an hour,
chaired by Prime Minister Datuk Seri
Anwar Ibrahim and attended by the
top leadership of unity gov-
ernment component par-
ties,” said Fadillah, who
is also deputy prime
minister.
Undersea tunnel:
Penang to wait
for steering
committee’s
recommendations,
says Chow
Bernama
The event will also include a digital treas-
ure hunt, a photography workshop, ‘Music
on the Hill - East meets West’ performances,
and Junior Rainforest Exploration.
Chow also welcomed those interested
in volunteering for the festival, an event
that brings together businesses, academics,
artists, and nature enthusiasts to celebrate
the vibrant cultural tra-
ditions of Penang Hill.
LOW YEN YEING/THE EDGE
New water tariff for
Perak users kicks in
May 1 — MB’s Office
Bernama
IPOH (April 18): The new water tariff
for domestic users in Perak has been set
at 75 sen per cubic metre, compared with
the previous 70 sen, effective May 1.
The Perak Menteri Besar’s Office, in
a statement, said that the increase of five
sen involves the use of up to 20 cubic
metres per month while the charge for
the use of up to 21 to 35 cubic metres is
set at a rate of RM1.08, compared with
RM1.03 sen previously.
It said that to reduce the impact of
tariff changes on domestic users, the
Perak Water Board (LAP) will provide
a rebate of 40 sen per cubic metre for
use of up to the first 10 cubic metres per
month (equivalent to RM4 per month).
“With the rebate, the average tariff
rate for the use of up to 20 cubic metres
can be reduced to only 55 sen per cubic
metre compared with 75 sen without the
rebate,” read the statement.
It added that with an increase of five sen,
the new water tariff in Perak is much lower
than the average rate of 22 sen set by the Na-
tional Water Services Commission (SPAN).
“The minimum charge for domestic
use is RM7.50 before taking into ac-
count the rebate. After taking into ac-
count the rebate, the minimum charge
is RM3.50 compared with the current
rate of RM3,” it said.
For non-domestic users, there will be
an increase of five sen per cubic metre.
It added that the new tariff also does
not affect the free water programme of
25 cubic metres per month for target
groups and the free water programme of
20 cubic metres for houses of worship.
The last adjustment to the state water
tariff was made in 2006.
“LAP should take advantage of the
new tariff to improve the quality of its
services, including replacing old pipes
and improving maintenance aspects.
“To do that, LAP needs sufficient
funds to finance improvement pro-
grammes including constructing water
treatment plants, especially in new de-
velopment areas,” it said.
Several states have already announced
new water tariffs following the decision by
the Cabinet to approve the implementation
of the water supply rate adjustment for the
domestic category and impose electricity
charges enforced on Feb 1.
 F R I D AY A P R I L 1 9 , 2 0 2 4
PUTRAJAYA (April 18):The Federal Court
on Thursday dismissed an appeal by the
Petaling Jaya City Council (MBPJ) over the
Court of Appeal’s decision last year that de-
cided that non-paying members in a residen-
tial area (RA) could raise the boom gates at
the entrance to the housing area themselves
without the security guards’ assistance.
The unanimous decision was made by a
three-member apex court bench led by Da-
tuk Zabariah MohdYusoff, who also ordered
MBPJ to pay RM100,000 costs to the RA
identified as Lim Keng Jit who represent-
ed the Parkville RA in Sunway Damansara.
Zabariah sat with judges Datuk Seri
Hasnah Mohammed Hashim and Datuk
Vazeer Alam Mydin Meera.
In deciding not to answer the questions
posed by MBPJ, the apex court ruled that
the Court of Appeal’s decision last year,
based on the Au Kean Hoe v D’Villa
Equestrian decision, was correct, and said
that the lower court’s decision for the RA
to ask its non-paying members to raise the
boom gates themselves to get in and out
of the housing estate was lawful.
The outcome was confirmed to The
Edge by lawyer Surendra Ananth, who
appeared with counsel Datuk Malik Im-
tiaz Sarwar for Lim in online proceedings
on Thursday.
Datuk Gurdial Singh Nijar and Yat-
iswara Ramachandran appeared for MBPJ.
Last October, a three-member Federal
Court bench granted leave to MBPJ for the
KUALA LUMPUR (April 18): The ongo-
ing Shariah High Court dispute, initiated
by Tan Sri Jamaludin Jarjis’ widow Puan
Sri Dr Kalsom Ismail for her joint matri-
monial asset claim to the late former min-
ister’s RM2.1 billion estate, will go to trial
in July before a new judge.
This followed the dismissal by the
Shariah Court of Appeal of Kalsom’s
request for the case to proceed to trial
on Jan 26.
The two-day hearing from July 2 before
new Shariah High Court judge Abu Suffian
Abdul Aziz, replacing Abdul Shukor Abd
Hamid who has been transferred, will be
a closed proceeding.
The directive for a closed proceeding
barring the public including the media was
made by Abu Suffian following case man-
agement last month.
Abu Suffian said he is following the
footsteps of Abdul Shukor in keeping the
proceedings closed from media scrutiny,
even without any request from the parties.
Prior to this, Abdul Shukor had direct-
ed for the proceedings to be done behind
closed doors due to the possibility of a
settlement.
14 THEEDGE CEO MORNING BRIEF
H O M E
Federal Court
dismisses MBPJ’s
appeal on
residents’ boom
gate operation
BY HAFIZ YATIM
theedgemalaysia.com
merits of the appeal be heard based on three
questions posed to the bench namely:-
• Whether local authorities can enact
guidelines, regulations and/or impose
conditions when regulating guarded
community schemes in residential areas
to ensure that there are no impediments
to the rights of residents (including the
aged, retirees, and the infirm) in these
areas when they access their homes?
• Whether it is permissible for an RA to
restrict the rights of non-paying mem-
bers of the RA and non-members of
the RA to use public roads in the resi-
dential area by requiring these persons
to operate the boom gates leading into
the residential area on their own?
• Whether a local authority like MBPJ
can balance the rights of residents who
live within a residential area who want a
Jamaludin Jarjis’
asset dispute trial
gets new judge,
but media barred
from covering
proceedings
BY HAFIZ YATIM
theedgemalaysia.com
However, the likelihood of a settlement
seems not to be forthcoming, as parties
including Jamaludin’s mother Aminah Ab-
dullah have failed to reach a conclusion,
resulting in the matter going on trial.
Aminah is disputing her daughter-in-
law’s joint matrimonial asset claim, claim-
ing that as the surviving mother of the
late ex-minister, she is entitled to her own
share under the faraid Islamic distribu-
tion system.
guarded community scheme, and those
who do not want such a scheme, by pro-
hibiting those in favour of the scheme
from restricting the rights of those not
in favour of the scheme to use public
roads leading into the residential area?
The Shah Alam High Court, in 2022,
found MBPJ’s refusal to allow the RA to
impose the condition was legal, rational
and reasonable.
The Court of Appeal, however, on April
17, 2023, reversed the High Court’s de-
cision by allowing the RA’s appeal, as it
ruled that the condition was reasonable,
and decided that the non-paying members
can operate the boom gates themselves.
The appellate court decided that the
condition was reasonable based on the
Federal Court’s decision in Au Kean Hoe
v D’Villa Equestrian, where the apex court
held that the construction of a guardhouse
and boom gates did not amount to an “ob-
struction” under Section 46(1)(a) of the
Street, Drainage and Building Act 1974.
The Parkville RA filed the judicial re-
view through its chairman, Lim, seeking a
declaration that the RA is entitled to im-
pose a rule that non-paying owners and
residents or non-members of the RA would
operate the boom gates themselves with-
out the assistance of the security guards.
This followed MBPJ’s rejection of the
RA’s application for permission to impose
the condition on March 30, 2021.
Faraid is a concept in Islamic law to
determine the distribution of property to
the heirs of a deceased.
Under this law of inheritance, the sur-
viving mother is entitled to one-sixth of
the estate, while Kalsom is entitled to one-
eighth.
The outcome of the case management
was revealed by Aminah’s counsels Nur
Hidayah A Bakar and Farhan Haziq when
contacted by The Edge on Thursday.
Jamaludin passed away in a helicopter
crash near Semenyih with five others in
April 2015. He was the Umno Member of
Parliament for Rompin at the time.
He served as the minister of science,
technology and innovation from 2004 to
2008, and was also the Malaysian ambas-
sador to the US from 2009 to 2012.
The Edge previously reported that the
late Jamaludin was said to have several
bank accounts locally and abroad, along
with several properties, including hous-
es in Malaysia, Saudi Arabia and the US.
Two of Jamaludin’s children, Ikhwan
Hafiz and Nur Anis, were given letters of
administration by the Civil High Court in
2017 to manage the estate.
 f r i d a y A P RI L 1 9 , 2 0 2 4
(April 18): Federal Reserve Bank of Cleve-
land president Loretta Mester said mone-
tary policy is in a good place, adding that
the central bank shouldn’t be in a hurry to
cut interest rates.
Mester said she still expects inflation will
fall further but that she wants to see more
data to gain confidence it’s moving back to-
ward the Fed’s 2% target. A strong economy
and robust labour market are giving the Fed
room to be patient with policy, she said.
“I still am expecting inflation to come
down but I do think that we need to be
watching and gathering more informa-
tion before we take an action,” Mester said
Wednesday at an event in Chagrin Falls,
Ohio.
Earlier this month, Mester said she saw
three rate cuts as likely appropriate this year
but indicated at the time it was a “close call.”
Mester, who currently votes on monetary
policy, will step down at the end of June.
Fed governor Michelle Bowman said at a
separate event in Washington that progress
on inflation may have stalled and questioned
the degree to which monetary policy is re-
straining the economy.
There “is a lot of financial market
activity and a lot of continued growth
that we wouldn’t have expected if poli-
(April 18): Economists at Citigroup Inc
are going out on a limb by wagering that
virtually everyone on Wall Street is wrong
about the US Federal Reserve (Fed).
After three straight months of slightly
faster-than-expected inflation readings, ri-
vals at Bank of America Corp, Goldman
Sachs Group, Morgan Stanley, and oth-
er banks have dialled back their forecasts
for interest-rate cuts this year. Chair Je-
rome Powell lent support to those moves
on Tuesday, when he signalled that poli-
cymakers are in no hurry to ease policy.
But Citigroup’s Andrew Hollenhorst
and Veronica Clark say that the rush to
judgement is misguided, because the Fed
remains concerned that the surprisingly
strong run of economic growth could
stall. As a result, the two are sticking by
their forecast for five-quarter point cuts
this year, saying policymakers are eager to
seize on any signs of disinflation or eco-
nomic weakness.
“We have been thinking about the econ-
omy’s trajectory in 2024 very different-
ly from other forecasters,” Hollenhorst,
who has consistently built sticky inflation
expectations into his estimates this year,
said in an interview. “We think the Fed’s
reaction function is a lot more dovish than
the consensus.”
The bank’s forecast stands in contrast to
the broader sentiment in financial markets,
15 TheEdge CEO morning brief
w o r l d
Fed’s Mester says
central bank can
hold rates steady,
not in a hurry
to cut
by Catarina Saraiva & Craig Torres
Bloomberg
cy was sufficiently tight,” Bowman said
Wednesday. “I think it is restrictive. I
think time will tell whether it is suffi-
ciently restrictive.”
Fed officials have said they’re not in a
rush to start cutting rates, which they’ve
held in a range of 5.25% to 5.5% since
July. Higher-than-expected inflation data
in the first three months of this year has
increased concern that it may take longer
than previously thought to return to the
Fed’s 2% target.
That data also led to a shift in tone by
chair Jerome Powell earlier this week. He
said Tuesday that it’s appropriate to give
Citi says Wall
Street wrong
to slash Fed
rate-cut bets
by Carter Johnson
Bloomberg
bloomberg
where bond yields surged after last week’s
consumer price index report drove inves-
tors to recalibrate their expectations. In the
derivatives market, traders are pricing in a
roughly 10% chance of a first rate cut in
June, and doubt whether the Fed will even
bloomberg
policy further time to work, adding the Fed
can keep rates steady for “as long as need-
ed” should price pressures persist.
Bowman said there are some bright
spots on the inflation front, such as a de-
cline in food costs in many areas. But prices
are still rising for some services, and hous-
ing and insurance continues to be “much
more expensive than in the past.”
enact two quarter-point reductions this year.
The markets, however, have consist-
ently struggled to predict where the Fed
has been headed over the past few years
— both underestimating how much it
would tighten and how soon it would re-
verse course. If Citigroup’s economists are
correct, the latest turn may be just anoth-
er misstep.
Key to their view is the upcoming read-
ings of the core personal consumption ex-
penditures index, a measure of inflation
that’s favoured by the Fed. The Citigroup
economists expect it to show some cool-
ing of price pressure. If the index shows
monthly gains of only 0.25% in March and
April — roughly where it was in February
— the Fed will find “cover to begin ‘grad-
ually’ adjusting policy rates lower starting
in June or July”, the economists said.
Citi also expects that the Fed will give
more weight to any signs of economic
weakness — like a slowdown in the jobs
market — than it will to data showing con-
tinued strength, given what they see as a
bias within the bank towards easing policy.
“Despite a professed lack of ‘urgency’,
Powell and the committee are anxious to
begin adjusting policy rates lower,” Hollen-
horst and his colleagues wrote in a Wednes-
day note. “The dovish asymmetry of the
Fed’s reaction function appears under-
priced by interest rate markets.”
 f r i d a y A P RI L 1 9 , 2 0 2 4
BEIJING (April 18): There is still room
for China’s central bank to take steps to
support the economy, but efforts are need-
ed to prevent cash from sloshing around
the banking system as real credit demand
weakens, senior officials at the bank said
on Thursday.
The world’s second-biggest economy
grew faster than expected in the first quar-
ter, but several March indicators, such as
property investment, retail sales and indus-
trial output showed that domestic demand
remains frail, weighing down momentum.
The People’s Bank of China (PBOC)
has pledged to step up policy support for
the economy this year and promote a re-
bound in prices.
“A series of monetary policy measures
introduced earlier are gradually taking ef-
fect, and the economy continues to re-
bound with a good start,” Zhu Hexin, a
deputy governor of the PBOC, told a news
conference on Thursday.
“There is still room for monetary policy
going forward, and we will closely watch
the policy effectiveness, economic recov-
ery, and achievement of goals, and make
good use of reserve tools at the appropri-
ate time.”
China’s central bank cautioned on
Thursday against a “one-sided” pursuit
of credit expansion after data showed a
slowdown in bank lending, vowing to pri-
oritise the quality of credit over size and
move to revitalising existing loans.
China restates
need for steady
yuan amid fragile
confidence
by Iris Ouyang
Bloomberg
(April 18): China reiterated the need to
prevent one-sided moves in the yuan, as a
resurgent dollar and poor risk sentiment
pressure currencies across Asia.
The nation will “resolutely” put the
yuan back on track when traders place lop-
sided bets and it’ll also attempt to avoid
excessive volatility, the People’s Bank of
China (PBOC) said in a report on its so-
cial media account on Thursday. The Chi-
nese currency slid to the weakest since No-
vember earlier this week on bets the US
won’t rush into cutting interest rates and
the world’s second largest economy will
struggle to recover.
16 TheEdge CEO morning brief
w o r l d
China’s central
bank signals
caution over
credit boost as
demand weakens
by Kevin Yao
Reuters
Bloomberg
Zou Lan, head of the PBOC’s monetary
policy department, told the briefing that ef-
forts should be made to prevent the accumu-
lation of “idle funds” as some banks extend
more loans than actually needed and some
firms use low-cost loans to buy wealth man-
agement products or lend to other firms.
The yuan rose 0.1% to 7.2349 per dol-
lar as of 10.23am in Shanghai.
While the commentary was a reiter-
ation of Beijing’s usual verbal warning
against speculators, it underscores au-
thorities’ concern about wild swings in
the yuan that may endanger financial sta-
bility. It also came as neighbouring Ja-
pan and South Korea expressed “serious
concerns” over the recent weakening of
“Credit demand has weakened com-
pared to previous years, and the credit
structure is also being optimised and up-
graded,” Zou said, adding that China’s
money supply growth could slow down
and people should not simply look at year-
on-year growth.
The central bank has in recent weeks
delivered modest cuts in banks’ reserve re-
quirement ratio (RRR) and interest rates
as part of broad measures to support the
economy, with more policy easing expect-
ed in the coming months.
Rates cannot be too low
Real interest rates, when adjusted for pro-
ducer prices, remain elevated for some in-
dustries — including ferrous metal pro-
ducers, but high borrowing costs will help
promote capacity control and inventory
reduction among firms, Zou said.
“We should avoid weakening the driv-
ing force of structural adjustments and
prevent excessively low interest rates,”
he said.
New bank lending in China rose less
than expected in March from the previous
month, while broad credit growth hit a re-
cord low, boosting the case for the central
bank to roll out more stimulus steps to
help achieve an ambitious growth target.
China has set an economic growth tar-
get for 2024 of around 5%, which many
analysts say will be a challenge to achieve
without much more stimulus.
their currencies and warned they make
take steps to counter any drastic volatility.
China will make sure that its exchange
rate is mostly determined by supply and
demand, according to the PBOC report,
which was originally published by Com-
munist Party-backed People’s Daily and
posted on a WeChat account run by the
central bank.The yuan will be kept broadly
stable, it said.
 f r i d a y A P RI L 1 9 , 2 0 2 4 17 TheEdge CEO morning brief

w o r l d

Slower US Fed pivot weakens rate-cut

bets across emerging Asia
by Marcus Wong
South Korea
Bloomberg

(April 18): Asian central banks’ need for

assertive defense of their currencies is driv-
ing traders to turn less dovish on monetary
policies in the region.
Interest rate swaps for South Korea, Ma-
laysia, and Thailand all jumped in recent
weeks, a sign that traders are paring rate-
cut expectations in those emerging markets.
The Bloomberg Asia Dollar Index fell 0.8%
in April, set for the fourth straight month-
ly decline, as solid US economic data and
more hawkish bets for the Federal Reserve
steer investors to the dollar.
“With later and fewer Fed rate cuts, we
also adjust our forecasts for Asian central
banks — projecting a later start for an even
shallower rate cut path,” Morgan Stanley
economists including Chetan Ahya wrote importer, elevated oil prices are driving im- are penciling in only two quarter-point cuts
in a note dated April 15. China, South Ko- port prices higher and threaten policymak- in the second half of the year, cooling from
rea, Indonesia, the Philippines and Taiwan ers’ efforts to combat inflation. “With the earlier expectations of a cumulative 75-basis
particularly are the markets that will likely strong data coming from US and oil price point reduction.
see rate cut delays, they said. going higher, the ‘high for longer’ theme has
For now, the region’s central banks come back to markets again,” BNP Pari- 3. Malaysia
have generally stuck to non-rate tools to bas’ global markets strategists Chandresh Traders have turned slightly more hawkish
support local currencies. More aggressive Jain and Parisha Saimbi wrote in an April for Bank Negara Malaysia since the end of
policy action may be needed if the weak- 15 note. The probability of rate cuts “from March, based on ringgit one-year one-day
ness persists, with higher-for-longer rates Bank of Korea will decrease if this persists.” swaps, according to Bloomberg-compiled
or even a resumption of rate hikes being data. The ringgit’s persistent weakness has
possible options. 2. Thailand pushed back expectations for a rate cut fur-
Here are three charts that show how Traders are pricing around 15-basis points ther into 2025, despite the country’s slug-
rate cut expectations have ebbed in emerg- of easing from the Bank of Thailand over the gish economy. The Malaysian policy rate’s
ing Asia: next six months, down from expectations at record discount to the upper bound of the
the end of March for nearly 50 basis points, Fed’s benchmark — at 250 basis points —
1. South Korea according to Bloomberg-compiled data. “In has been one of the main reasons behind
Traders are pricing around a five-basis our view, the hawkish tone at BOT’s April the currency’s weakness. BNM has already
point cut over the next twelve months, rein- meeting and later Fed cuts have reduced the resorted to encouraging state-linked firms
ing in their expectations for a full quar- chance of a BOT rate cut in June,” Goldman to more consistently repatriate foreign in-
ter-point cut at the end of March, according Sachs Group Inc analysts including Danny vestment income and to convert it into the
to Bloomberg-compiled data. As a net energy Suwanapruti wrote in an April 11 note.They local currency.
Thailand Malaysia
 f r i d a y A P RI L 1 9 , 2 0 2 4
Bank of Japan’s
Noguchi says
future rate hikes
likely to be slow
by Takaya Yamaguchi & Makiko Yamazaki
Reuters
SAGA, Japan (April 18): Bank of Japan
(BOJ) board member Asahi Noguchi said
on Thursday the pace of future rate hikes
would likely be much slower than that of its
global peers in recent policy tightening, as
the impact of rising domestic wages had yet
be fully passed onto prices.
“With regard to the pace of policy rate
adjustment, it is expected to be slow, at a
pace that cannot be compared to that of
other major central banks in recent years,”
Noguchi said in the text of a speech posted
on the BOJ’s website.
“This is because it would take a reason-
able amount of time to reach a situation
where prices continue to rise at around 2%
as a trend,” he said in the speech, which was
delivered to business leaders in the south-
western city of Saga.
Noguchi said in separate comments that
the likelihood of achieving the 2% target
could be “considerably high” in 2026.
“I personally believe that the situation
will improve substantially in a period of two
years,” he said at a press conference when
asked how long it would take for inflation
to hit the target.
TOKYO (April 18): Japanese companies
have agreed to raise pay by 5.20% on av-
erage this year, the biggest rise in 33 years,
the country’s largest union group Rengo
said on Thursday, wrapping up its fourth
tally of the 2024 labour talks.
The outcome of the “shunto” labour
offensive is a barometer for spending and
durable inflation, and a key factor the cen-
tral bank gauges to decide on next steps,
after its landmark decision in March to
end negative rates.
“The tide of wage hikes is firmly in
place,” Rengo said in a statement. The
raises were the biggest for the fourth
round, for which it began compiling com-
parable data in 2013, it said.
Bank of Japan governor Kazuo Ueda
has said sustained wage growth and in-
flation are crucial for normalising mon-
etary policy, while Prime Minister Fu-
mio Kishida has also expressed hopes
that generous pay hikes would put a de-
18 TheEdge CEO morning brief
w o r l d
bloomberg
He declined to comment on whether
there would be another interest rate hike
this year, though he said it would depend
on economic conditions.
The BOJ ended eight years of negative
interest rates and other remnants of its unor-
thodox policy last month, making a historic
shift away from its focus on reflating growth
with decades of massive monetary stimulus.
Investors are looking for any clues on
how soon the central bank will raise short-
term interest rates again from the current
0%-0.1% range, with bets on the timing
ranging from between July to the final quar-
ter of this year.
A former academic known for his dovish
policy views, Noguchi was among two dis-
senters on the BOJ’s nine-member board in
the decision last month to end eight years
of negative interest rates.
Read the full story
Japan said to see
biggest pay hikes
in 33 years
by Tetsushi Kajimoto
Reuters
cisive end to more than two decades of
deflation.
“Wage hikes are much faster than
expected probably because of high im-
port costs and government pressure on
boosting pay,” said Takahide Kiuchi, an
executive economist at Nomura Research
Institute. “If the ongoing yen weakening
pushed up inflation, the Bank of Japan
may bring forward the timing of its next
rate hikes to the summer even though
monetary policy won’t target currencies.”
Japan firms’
business mood
slips as weak
yen squeezes
households
by Tetsushi Kajimoto
Reuters
TOKYO (April 18): Business con-
fidence at big Japanese manufactur-
ers and services sector firms slid in
April from the prior month, dragged
down by cost-of-living pressures
and shaky economic conditions
in major market China, a Reuters
monthly poll showed.
The yen’s weakening to levels
unseen since 1990 during the hey-
day of the asset-inflated bubble is
lifting the cost of imports in a blow
to household consumption, accord-
ing to the Reuters Tankan survey.
Moreover, while the fall curren-
cy has boosted the value of exports,
volume of shipments have not ben-
efited as much, the survey found.
The Reuters Tankan sentiment
index for manufacturers stood
at plus 9, down from the previ-
ous month’s 10, dragged down by
chemicals and food processing.
The services sector index fell to
plus 25 from plus 32 in the previous
month, despite some gains by re-
tailers. The survey, conducted April
3-12, found that both sectors’ sen-
timent indexes improving slightly
over the coming three months.
Read the full story
reuters
 f r i d a y A P RI L 1 9 , 2 0 2 4
TAIPEI (April 18): Taiwanese chipmaker
TSMC posted a 9% rise in first-quarter
net profit on Thursday that beat market
expectations as it rides a wave of demand
for semiconductors used in artificial in-
telligence applications.
Taiwan Semiconductor Manufactur-
ing Co Ltd (TSMC), the world’s largest
contract chipmaker and a major Apple
Inc and Nvidia supplier, has benefitted
from a surge towards AI that has helped it
weather the tapering off of pandemic-led
electronics demand and pushed TSMC’s
stock to a record high.
TSMC saw January-March net profit
rise to T$225.5 billion (RM33.4 billion)
from T$206.9 billion a year earlier.
The profit beat a T$218.1 billion
LSEG SmartEstimate, which is weight-
ed toward forecasts from analysts who
are more consistently accurate.
TSMC, Asia’s most valuable listed
Huawei starts
sales of new Pura
70 smartphone
to crowds amid
chip scrutiny
by Josh Ye, David Kirton & Brenda Goh
Reuters
HONG KONG/SHENZHEN/SHANG-
HAI (April 18): Chinese technology gi-
ant Huawei started selling two models of
its highly anticipated, high-end Pura 70
smartphone series on Thursday that many
analysts expect to contain an advanced
China-made chip like its Mate 60 handset.
The Pura series developed by the
Shenzhen-headquartered company has
advanced cameras and is known for its
sleek design, while the Mate series empha-
sises performance and business features.
Chinese state media celebrated the
launch of Huawei’s Mate 60 series last
year as a triumph over US sanctions on
the firm, as the handsets contain an ad-
vanced China-made chip whose comput-
ing power analysts consider is only a few
generations behind chips used by Western
tech giants Apple and Google.
Eric Xu, Huawei’s acting chairman, on
Wednesday told a forum in Shenzhen that
the company also plans to roll out a Mate
70 smartphone this year.
The Pro and Ultra versions of the Pura
70 were available on Thursday, while the
19 TheEdge CEO morning brief
w o r l d
TSMC’s first
quarter profit
rises 9%, beats
forecasts
by Yimou Lee, Faith Hung
& Ben Bl anchard
Reuters
company, said first-quarter revenue rose
13% year-on-year to US$18.87 billion,
better than the company’s previous fore-
cast of US$18 billion to US$18.8 billion.
The company last week announced first
quarter revenue in Taiwan dollars, com-
ing in at T$592.64 billion.
Capital expenditure in the first quarter
reuters
Plus and base versions will begin sales on
April 22. The phones were out of stock at
Huawei’s official online store just a min-
ute after sales started, and hundreds of the
brand’s fans lined up at Huawei stores in
Beijing, Shanghai and Shenzhen.
One customer, Lucas Zhuang, tested
the network speed of the Pura 70 and said
it was at the level of 5G. Washington has
banned the licensing of 5G chips to China
but Huawei’s Mate 60 phones were already
able to achieve 5G speed in many cases
despite Huawei not branding it as 5G.
“We don’t know what chip the Pura 70
has inside. We’ll only find out after buying
it,” Zhuang, who already owns the Mate
60, told Reuters after waiting in line at
Huawei’s flagship store in Shanghai.
“But we believe ... the chip it has will
certainly meet people’s needs.”
Read the full story
was US$5.77 billion, TSMC said, com-
pared with US$5.24 billion in the fourth
quarter of 2023.
TSMC’s Taipei-listed shares have
surged 36% so far this year. The stock
was flat on Thursday ahead of the re-
sults versus a 0.4% gain for the bench-
mark index.
The company will provide updates on
its outlook for the current quarter and
the rest of the year on an earnings call
starting at 0600 GMT, including capi-
tal expenditure which it has previously
guided as being in the range of US$28
billion to US$32 billion this year, com-
pared with last year’s US$30.45 billion.
On Wednesday, ASML, the largest sup-
plier of equipment to computer chip mak-
ers like TSMC, reported weaker than ex-
pected first-quarter new bookings, though
sales to China held up despite US-led
restrictions.
TikTok faces
Washington reckoning
as divest-or-ban vote
gets closer
by Steven T Dennis & Sana Pashankar
Bloomberg
(April 18): TikTok is heading to its
moment of truth in Washington, with
Congress on a fast track to approve a
bill aimed at forcing the social-media
platform’s Chinese parent ByteDance
Ltdon to divest its controversial own-
ership stake.
Speaker Mike Johnson plans to
include TikTok divestiture legisla-
tion already passed by the House in a
fast-moving aid package for Ukraine and
Israel that the chamber is set to clear
on Saturday. The Senate is expected to
quickly take up the measure, and Presi-
dent Joe Biden promised Wednesday to
sign it immediately.
If signed into law, the bill would de-
liver a significant blow to a video-shar-
ing app used by as many as 170 million
Americans. Its enactment would also
mark a major setback to the compa-
ny’s intense lobbying efforts, especially
by chief executive officer Shou Chew,
who made the rounds on Capitol Hill
last month in a bid to get the Senate to
squelch the legislation.
Read the full story
 f r i d a y A P RI L 1 9 , 2 0 2 4
WASHINGTON (April 18): The number
of Americans filing new claims for unem-
ployment benefits was unchanged at a low
level last week, pointing to continued labor
market strength.
Labour market resilience, which is driv-
ing the economy, together with elevated in-
flation have led financial markets and some
economists to expect that the Federal Re-
serve could delay cutting interest rates until
September. A few economists doubt that
the US central bank will lower borrowing
costs this year.
“Overall, layoffs remain low. We expect
a continuation of the current trend, with
a further adjustment in the labour market
Australian jobs
surprisingly fall,
giving RBA scope
for patience
by Swati Pandey
Bloomberg
(April 18): Australian employment un-
expectedly fell in March and the job-
less rate edged higher, unwinding some
of the huge upside surprise of the prior
month and reflecting restrictive settings
of monetary policy.
The economy shed 6,600 roles,
confounding expectations for a 10,000
gain and following an increase of over
100,000 in February, government data
showed Thursday. Unemployment
ticked up to 3.8% from 3.7% in Feb-
ruary.
The data “suggests a healthy and still
tight labour market,” said Su-Lin Ong,
chief economist at the Royal Bank of
Canada. “Despite sub-trend econom-
ic growth, a consumer recession, and
subdued confidence, the labour market
remains reasonably resilient.”
Ong said the result adds to the risk
the Reserve Bank will have a late and
shallow interest rate easing campaign.
The consensus among economists, at
the moment, is for the rate cutting cy-
cle to begin in the final quarter of the
year. Money markets show a near 50-
50 chance of a reduction in November.
While the jobless rate edged higher
in March, a level below 4% still indi-
cates the market is close to full capac-
ity. The employment-to-population ra-
tio and participation rate are both near
record highs.
20 TheEdge CEO morning brief
w o r l d
US weekly jobless
claims remain at
low level
by Lucia Mutikani
Reuters
reuters
A counter-protester holding an Israeli flag walks
into the parking lot near a protest at Google Cloud
offices in Sunnyvale, California on April 16, 2024.
Google fires
workers protesting
US$1.2 bil Israeli
contract
by Davey Al ba & Julia Love
Bloomberg
(April 18): Alphabet Inc’s Google has fired
28 employees after they were involved in
protests against Project Nimbus, a US$1.2
billion (RM5.7 billion) joint contract with
Amazon.com Inc to provide the Israeli gov-
ernment with AI and cloud services.
The protests, which were led by the No
Tech for Apartheid organisation, took place
Tuesday across Google offices in NewYork
City, Seattle, and Sunnyvale, California. Pro-
testers in NewYork and California staged a
nearly 10-hour sit-in, with others document-
ing the action, including through a Twitch
livestream. Nine of them were arrested Tues-
day evening on trespassing charges.
Several workers involved in the protests,
including those who were not directly en-
gaged in the sit-in, received a message from
coming from a moderation in hiring rather
than a surge in firings,” said Rubeela Faroo-
qi, chief US economist at High Frequency
Economics.
Initial claims for state unemployment
benefits were unchanged at a seasonal-
ly adjusted 212,000 for the week ended
April 13, the US Labor Department said
on Thursday.
Economists polled by Reuters had forecast
215,000 claims in the latest week. Claims
have been bouncing around in a 194,000-
225,000 range this year.
Read the full story
the company’s Employee Relations group
informing them that they had been put on
leave. Google told the affected employees
that it’s “keeping this matter as confiden-
tial as possible, only disclosing information
on a need to know basis” in an email seen
by Bloomberg. On Wednesday evening, the
workers were informed they were being dis-
missed by the company, according to a state-
ment from Google staff with the No Tech
for Apartheid campaign.
“Physically impeding other employees’
work and preventing them from accessing
our facilities is a clear violation of our pol-
icies, and completely unacceptable behav-
iour,” Google said in a statement about the
protesters. “After refusing multiple requests
to leave the premises, law enforcement was
engaged to remove them to ensure office
safety. We have so far concluded individual
investigations that resulted in the termina-
tion of employment for 28 employees, and
will continue to investigate and take action
as needed.”
Google has long favoured a culture of
open debate, but employee activism in recent
years has tested that commitment.Workers
who organised a 2018 walkout over the com-
pany’s handling of sexual assault allegations
said Google punished them for their activ-
ism. Four other workers alleged they were
fired for organising opposition to Google’s
work with federal Customs and Border Pro-
tection and for other workplace advocacy.
Read the full story
Read also:
Google lays off employees, shifts some
roles abroad amid cost cuts
UBS shuts some China private funds,
will lay off staff, sources say
 f r i d a y A P RI L 1 9 , 2 0 2 4
Norway’s US$1.6
tril fund misses
benchmark with
6.3% return
by Kari Lundgren
Bloomberg
(April 18): Norway’s US$1.6 trillion
(RM7.65 trillion) sovereign wealth fund
underperformed its benchmark in the first
quarter, with returns coming up short for
a second consecutive report.
Norges Bank Investment Management
(NBIM), which manages Norway’s fossil
wealth, returned 6.3%, or US$110 billion,
it said in a statement on Thursday. That’s
down from a 7.9% return in the final quar-
ter of last year.
The fund, largely an index tracker,
gained 9.1% on stocks and lost 0.4% on
its fixed-income investments. It missed the
benchmark by 0.1 percentage point in the
(April 18): US mortgage rates climbed to
a four-month high last week, potentially
signalling a bumpier recovery for the resi-
dential real estate market.
The contract rate on a 30-year fixed mort-
gage rose 12 basis points to 7.13% in the
week ended April 12, according to Mortgage
Bankers Association data released Wednes-
day. The effective rate, which includes fees
and compound interest, increased to 7.32%.
Despite the pickup in borrowing costs,
purchase activity stabilised last week. The
group’s index of mortgage applications for
home purchases increased 5%, representing
just the first gain in five weeks.
Mortgage rates are at risk of rising fur-
ther based on the 10-year Treasury yield
21 TheEdge CEO morning brief
w o r l d
reuters
quarter, driven by “weak results” from real
estate.
“Our equity investments had a very
strong return in the first quarter, particular-
ly driven by the tech sector,”Trond Grande,
the deputy chief executive officer, said in
the statement.
Global stock markets climbed in the first
three months of the year across industries,
with the exception of real estate, but persis-
tent price pressures have weighed on mar-
kets in recent weeks. NBIM chief executive
officer Nicolai Tangen told Bloomberg last
week that inflationary factors ranging from
rising commodity costs to wage increas-
es will continue to dog global economies.
NBIM invests according to a strict man-
date from the Finance Ministry, measuring
itself against a benchmark index based on
the FTSE Global All Cap Index for eq-
uities and Bloomberg Barclays indices for
fixed income.
The fund lost 0.5% on its unlisted real
estate holdings and 11.4% on unlisted re-
newable-energy infrastructure.
The government deposited 96 billion
kroner (US$8.7 billion or RM41.71 billion)
into the fund during the quarter.
US 30-year mortgage
rate rises to four-month
high of 7.13%
by Vince Golle
Bloomberg
that now stands at the highest since Novem-
ber. Mortgage News Daily, which updates
more frequently, put the 30-year fixed rate
at 7.5% on Tuesday.
Read the full story
Binance
converts
its billion-
dollar ‘Safu’
emergency fund
into stablecoin
USDC
by Ryan Weeks
Bloomberg
(April 18): The world’s largest crypto
exchange Binance has converted the en-
tire pool of assets held in an emergency
fund for users into USDC, the stable-
coin issued by US firm Circle Internet
Financial.
The Secure Asset Fund for Users
(Safu) was established in 2018 to serve
as a backstop for customers in “extreme
situations”, according to the exchange.
Binance said in an announcement on
Thursday that it would be “transferring
100% of Safu’s assets to USDC.”
Binance previously held funds in
wallets comprising TUSD, BNB, Bit-
coin, and Tether’s USDT, according
to a Binance Academy post.
The move to USDC, a stablecoin
that aims to maintain a price level with
the US dollar, is the latest strategic shift
under chief executive officer Richard
Teng over the last five months.
Teng took the reins at Binance from
Changpeng “CZ” Zhao, in the wake of
a November 2023 plea deal with US
agencies that led to a giant US$4.3
billion fine. He has since overseen the
spinning off of Binance’s venture capital
unit and a tightening of requirements
for new token listings on the platform.
The Safu fund is generally main-
tained at around US$1 billion, but has
fluctuated in the past, in tandem with
market movements, Binance said in its
announcement.
“Making use of a trusted, audited
and transparent stablecoin for Safu, fur-
ther enhances its reliability and ensures
it remains stable at US$1B,” Binance
said, adding that the value of the fund
can be tracked in real time, using a pub-
licly available blockchain address.
Chris Holland, partner at HM, a Sin-
gapore-based compliance consultancy
firm, said the “100% USDC composi-
tion gives certainty to the value of the
fund in US dollar terms”.
 f r i d a y A P RI L 1 9 , 2 0 2 4
(April 18): The race for the “world’s best
airport” crown has been a two-horse af-
fair in recent years, with Doha’s Hamad
International and Singapore Changi lead-
ing the pack.
This year the title has switched, with 12-
time winner Singapore being edged out of
the top spot by its Middle Eastern rival in
the Skytrax World Airport Awards 2024.
In a strong showing for Asia, Seoul
Incheon bagged third place — also being
named 2024’s most family friendly airport
— while Tokyo’s twin facilities of Hane-
da and Narita took fourth and fifth spots.
Hong Kong airport saw a significant
boost, up 22 positions to 11th place after
the city shook off its Covid-19 hangover
and passenger numbers rose.
Once again US airports were nowhere
to be seen near the top of the table, with
the highest ranked, Seattle-Tacoma, slip-
ping six places to 24.
Europe continued to have a strong
showing, with Paris Charles de Gaulle,
Munich, Zurich and Istanbul all main-
taining positions in the top 10.
In other moves:
• New York’s JFK fell five places to
93rd; LaGuardia rose from 57 to 33
• Melbourne remained the top ranked
Australian airport, steady in 19th place
DUBAI (April 18): Emergency workers
tried to clear waterclogged roads and people
assessed the damage to homes and business-
es on Thursday after a rare and epic rain-
storm swamped the United Arab Emirates.
Dubai International Airport, a major
travel hub, struggled to clear a backlog of
flights and many roads were still flooded
in the aftermath of Tuesday’s deluge.
The rains were the heaviest experienced by
the Gulf state in the 75 years that records have
been kept.They brought much of the country
to a standstill and caused significant damage.
Flooding trapped residents in traffic,
offices and homes. Many reported leaks
at their homes, while footage circulated on
social media showed malls overrun with
water pouring from roofs.
Traffic remained heavily disrupted. A
highway through Dubai was reduced to
22 TheEdge CEO morning brief
w o r l d
Singapore loses
“This year HIA celebrates its milestone
10th year of operations and we are truly
‘world’s best
honoured that passengers have voted us
Best Airport in the World for a third time,”
airport’ crown
said Qatar Airways Group chief executive
officer Badr Al Meer.
to Qatar
The Skytrax World Airport Awards
are determined by customer satisfac-
tion survey.
These are the World’s Best Airports of
by Alex Millson 2024, alongside last year’s rankings:
Bloomberg
1. Doha Hamad (2)
Bloomberg 2. Singapore Changi (1)
3. Seoul Incheon (4)
4. Tokyo Haneda (3)
5. Tokyo Narita (9)
6. Paris CDG (5)
7. Dubai (17)
8. Munich (7)
9. Zurich (8)
10. Istanbul (6)
11. Hong Kong (33)
Visitors at Jewel Changi Airport mall in 12. Rome Fiumicino (13
Singapore. Skytrax World Airport Awards 2024 13. Vienna (11)
named Doha’s Hamad International as 'world's 14. Helsinki-Vantaa (12)
best airport', beating Singapore's Changi Airport.
15. Madrid-Barajas (10)
16. Centrair Nagoya (16)
• London Heathrow jumped one spot to 17. Vancouver (20)
21st, while Gatwick was up seven to 48 18. Kansai (15)
• Japan’s Okinawa was the biggest 19. Melbourne (19)
climber, from 199th to 91st position 20. Copenhagen (14)
Flooded UAE
ter. Long queues formed at petrol stations.
Emergency workers used a fire truck to
counts cost of
pump water from a road flooded in nearly
waist-deep water as drivers tried to pass,
epic rainstorm,
navigating around abandoned vehicles.
Operations at Dubai airport remain dis-
Dubai airport still
rupted after the storm flooded the runway,
resulting in flight diversions, delays and
facing disruptions
cancellations.
The airport said on Thursday morning
it had resumed receiving inbound flights at
Terminal 1, used by foreign carriers, but that
Reuters flights continue to be delayed and disrupted.
It later said check-in was open at Ter-
a single lane in one direction, bringing minal 3 for Emirates and flydubai flights,
traffic to a standstill, while the main road but cautioned there was a large number of
that connects Dubai with Abu Dhabi was people waiting to check in and said trav-
closed in the Abu Dhabi direction. ellers should only arrive at the terminal
In Dubai, some vehicles, including bus- if they have departure confirmation from
es, were almost entirely submerged in wa- their airline.
Emirates, the single largest carrier at
the airport, had stopped all check-in pro-
cedures on Wednesday.
The airport struggled to get food to
stranded passengers with nearby roads
blocked by flood waters, and because over-
crowding limited access to those who had
confirmed bookings.
Read the full story
 f r i d a y A P RI L 1 9 , 2 0 2 4
SINGAPORE/JAKARTA (April 18): In-
donesia’s economy was primed for mone-
tary easing later this year, but an unwelcome
plunge in its currency is complicating mat-
ters for Bank Indonesia and could force it to
grudgingly raise rates as early as next week.
As Indonesian markets returned from
a long Eid al-Fitr holiday this week, the
rupiah sank to a four-year low against a
dollar buoyed by expectations that a hot
US economy will force the Fed to keep
rates higher for longer.
As it slid past the psychological level of
16,000 to a dollar, stacking up a 5.25%
loss for the year, some market participants
felt Bank Indonesia (BI) might need to do
something as drastic as a rate rise to arrest
the slide.
BI is the only central bank in the world
whose main mandate is currency stability.
Through 2023 and so far this year, it has
used a range of intervention tools to keep
the rupiah reined in as the dollar soared.
Until last month, it was even expected to be
among the first central banks in emerging
Asia to start cutting rates.
As BI prepares to review policy on April
23, the thinking is changing. A hike would
be its first since October.
“I think the risk of a hike is not small. I
wouldn’t put it as a baseline because they
did hike previously, but I would think it’s
not small,” said Alvin Tan, head of Asia FX
strategy at RBC Capital Markets.
Indonesia tells
state firms to
refrain from
buying dollars
by Grace Sihombing & Matthew Burgess
Bloomberg
(April 18): Indonesia discouraged its state-
owned enterprises from making huge dollar
purchases, showing the all-hands-on-deck
approach that the nation has taken to sup-
port the rupiah.
State-run firms with large import re-
quirements or foreign currency-denominat-
ed debt must avoid buying large amounts
of US dollars while the rupiah is under
pressure, Coordinating Minister for Eco-
nomic Affairs Airlangga Hartarto said in
a briefing on Thursday.
Asian officials are battling to shield
their currencies, many of which have
fallen to multi-year lows amid a surging
greenback as the Federal Reserve pushes
23 TheEdge CEO morning brief
w o r l d
Indonesia’s
plunging
rupiah twists
the policy plot
by Rae Wee & Stefanno Sulaiman
Reuters
BI is the only central
bank in the world
whose main mandate
is currency stability.
Through 2023 and
so far this year, it
has used a range of
intervention tools to
keep the rupiah reined
in as the dollar soared.
reuters
back rate cuts and fighting continues in
the Middle East.
“It’s not wise to keep buying dollars
during this time when the rupiah is de-
preciating,” Hartarto said at the briefing.
“We encourage state-owned enterprises to
restrain huge dollar purchases, especially
for imports of consumer goods.”
Natural-resource exporters must also
comply with rules to repatriate their dollar
“I think definitely, the rhetoric will have
to turn a bit more hawkish in order to lend
support to the currency.”
A rate rise would help bump up the yields
that have been the rupiah’s big appeal his-
torically, as well as the cause of its frequent
bouts of volatility.That’s even as tame infla-
tion and growth concerns do not call for one.
Once a popular carry-trade currency, In-
donesia’s high-yielding bond market has lost
appeal due to currency volatility and the wa-
fer-thin spreads it offers over dollar markets.
Spreads between 10-year US Treasuries
and Indonesian government bonds were as
wide as 7.5 percentage points four years
ago. Now they are two points.
Foreigners hold just 14% of outstanding
Indonesian government securities, while
back in December 2020 they owned a
quarter.
More needed
Bank Indonesia has been using a unique
mix of direct rupiah buying in the spot for-
eign exchange and domestic non-deliver-
able forwards (DNDF) markets as well as
purchases of government bonds to stem
the rupiah’s decline.
To be sure, the efforts have helped keep
the rupiah from falling as much as peers
such as the Korean won.
Read the full story
earnings to help bolster foreign exchange
reserves and underpin the local currency,
he added.
The rupiah this week slumped past the
16,000 per dollar psychological level for
the first time since April 2020, prompting
further Bank Indonesia intervention to sup-
port the currency. On Thursday, the cur-
rency halted two days of declines to close
0.3% stronger at 16,175 against the dollar.
 f r i d a y A P RI L 1 9 , 2 0 2 4 24 TheEdge CEO morning brief

M A R K E T S

CPO RM 3,984-28.00 OIL US$ 86.69-0.60 RM/USD 4.7855 RM/SGD 3.5189 RM/AUD 3.0835 RM/GBP 5.9687 RM/EUR 5.1061

Top 20 active stocks

NAME VOLUME CHANGE CLOSE YTD MARKET
(MIL) (RM) CHANGE CAP
(%) (RM MIL)
Borneo Oil Bhd 177.8 -0.005 0.005 -66.70 60.0
Ingenieur Gudang Bhd 129.9 -0.005 0.140 7.70 212.3
Eversendai Corp Bhd 71.6 0.030 0.405 145.50 316.3
Fitters Diversified Bhd 69.0 -0.005 0.045 -10.00 105.4
Velesto Energy Bhd 65.2 -0.005 0.270 17.40 2,218.2
Bina Puri Holdings BHD 39.3 -0.005 0.080 -5.90 269.9
CIMB Group Holdings Bhd 28.6 0.06 6.590 13.90 70,355.5
Tanco Holdings Bhd 27.8 -0.020 0.820 39.00 1,710.3
My EG Services Bhd 27.5 0.005 0.780 -4.30 5,818.1
Widad Group Bhd 27.2 0.000 0.065 -86.60 201.3 World equity indices
Minetech Resources Bhd 26.3 0.005 0.150 3.40 267.7 CLOSE CHANGE CHANGE CLOSE CHANGE CHANGE
SMTrack Bhd 25.4 0.000 0.045 -10.00 58.4 (%) (%)
Dagang NeXchange Bhd 25.2 -0.005 0.400 0.00 1,262.5 DJIA * 37,753.31 -45.66 -0.12 INDONESIA 7,166.81 35.97 0.50
Unitrade Industries Bhd 24.1 0.005 0.325 16.10 507.8 S&P 500 * 5,022.21 -29.20 -0.58 JAPAN 38,079.70 117.90 0.31
Avillion BHD 23.6 0.000 0.045 -10.00 51.0 NASDAQ 100 * 17,493.62 -220.04 -1.24 KOREA 2,634.70 50.52 1.96
Naim Holdings Bhd 23.6 -0.070 1.010 23.90 505.8 FTSE 100 * 7,847.99 27.31 0.35 PHILIPPINES 6,523.19 73.15 1.13
YTL Corp Bhd 23.2 0.060 2.560 35.40 28,077.5 AUSTRALIA 7,642.11 36.52 0.48 SINGAPORE 3,187.66 32.97 1.05
Cuscapi Bhd 22.9 0.025 0.205 17.10 193.7 CHINA 3,074.23 2.84 0.09 TAIWAN 20,301.20 87.87 0.43
SNS Network Technology Bhd 21.8 0.005 0.380 61.70 612.9 HONG KONG 16,385.87 134.03 0.82 THAILAND 1,361.02 -5.92 -0.43
Sunway Bhd 18.8 0.01 3.360 63.10 18,622.6 INDIA 72,489.00 -454.68 -0.62 VIETNAM 1,193.01 -22.67 -1.86
Data as compiled on April 18, 2024 Source: Bloomberg Data as compiled on April 18, 2024 * 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)
Fintec Global Bhd 0.010 100.00 1.2 0.00 59.3 Borneo Oil Bhd 0.005 -50.00 177.8 -66.70 60.0
Compugates Holdings BHd 0.015 50.00 2.0 0.00 82.5 Key Alliance Group Bhd 0.005 -50.00 0.1 -50.00 18.4
Focus Dynamics Group Bhd 0.015 50.00 0.0 0.00 95.6 Hong Seng Consolidated Bhd 0.010 -33.30 2.2 -60.00 51.1
MQ Technology Bhd 0.020 33.30 1.1 -20.00 30.4 XOX BHD 0.010 -33.30 0.9 -33.30 51.9
Sanichi Technology Bhd 0.020 33.30 0.2 -20.00 28.1 SC Estate Builder Bhd 0.010 -33.30 0.2 -35.70 40.9
Turiya Bhd 0.360 26.30 8.8 56.50 82.3 ZEN Tech International Bhd 0.015 -25.00 0.0 -25.00 46.7
DFCITY Group Bhd 0.335 19.60 0.0 -5.60 35.4 BSL Corp Bhd 0.025 -16.70 2.9 -44.40 48.3
GHL Systems Bhd 0.735 15.70 14.5 5.80 839.0 G3 Global Bhd 0.025 -16.70 1.5 0.00 94.3
TCS Group Holdings Bhd 0.195 14.70 14.2 44.40 83.7 Lambo Group BHD 0.025 -16.70 0.6 25.00 38.5
Cuscapi Bhd 0.205 13.90 22.9 17.10 193.7 Reach Energy Bhd 0.025 -16.70 0.4 -37.50 53.2
PIE Industrial BHD 5.570 12.80 12.5 71.40 2,139.1 Xidelang Holdings Ltd 0.025 -16.70 0.2 0.00 52.9
Meridian Bhd 0.045 12.50 0.1 -52.60 10.2 CME Group BHD 0.025 -16.70 0.0 -16.70 26.2
Crescendo Corp Bhd 3.900 10.20 2.0 68.10 1,089.7 China Ouhua Winery Holdings 0.040 -11.10 0.1 -27.30 26.7
Mclean Technologies Bhd 0.220 10.00 8.9 33.30 43.4 Fitters Diversified Bhd 0.045 -10.00 69.0 -10.00 105.4
Citra Nusa Holdings Bhd 0.055 10.00 0.6 0.00 39.5 Industronics BHD 0.045 -10.00 0.4 -10.00 31.8
Mentiga Corp BHD 0.615 8.80 0.0 -12.10 43.1 Vinvest Capital Holdings Bhd 0.045 -10.00 0.0 -25.00 43.6
SHH Resources Holdings BHD 1.260 8.60 0.0 -10.60 126.0 EITA Resources Bhd 0.825 -8.80 4.5 10.00 249.0
Asia Poly Holdings Bhd 0.065 8.30 0.6 -18.80 62.3 Trive Property Group BHD 0.055 -8.30 0.2 -31.30 69.5
EG Industries Bhd 1.440 8.30 11.7 -4.00 649.8 CYL Corp BHD 0.565 -8.10 0.4 8.70 56.5
ABM Fujiya Bhd 0.335 8.10 0.0 -9.50 60.3 KNM Group Bhd 0.060 -7.70 7.4 -33.30 242.6
Data as compiled on April 18, 2024 Source: Bloomberg Data as compiled on April 18, 2024 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)
Dutch Lady Milk Industries BHD 33.220 0.900 0.1 43.40 2,126.1 LPI Capital Bhd 11.780 -0.160 0.2 -1.50 4,693.0
PIE Industrial BHD 5.570 0.630 12.5 71.40 2,139.1 Panasonic Manufacturing 18.880 -0.160 0.0 4.90 1,146.9
Crescendo Corp Bhd 3.900 0.360 2.0 68.10 1,089.7 Greatech Technology Bhd 4.480 -0.140 1.0 -6.70 5,618.8
Mega First Corp BHD 4.680 0.340 2.1 26.80 4,412.1 Hengyuan Refining Co Bhd 3.000 -0.120 0.7 -2.30 900.0
Chin Hin Group Bhd 4.580 0.250 0.3 29.70 8,103.9 HCK Capital Group Bhd 2.140 -0.110 0.2 0.00 1,164.6
QL Resources Bhd 6.310 0.160 3.1 10.50 15,356.4 Hibiscus Petroleum Bhd 2.620 -0.100 3.8 3.10 2,092.3
Fraser & Neave Holdings Bhd 31.400 0.160 0.2 12.20 11,516.8 EITA Resources Bhd 0.825 -0.080 4.5 10.00 249.0
Ajinomoto Malaysia Bhd 19.180 0.140 0.0 20.60 1,166.1 British American Tobacco 8.390 -0.080 0.1 -9.70 2,395.6
EG Industries Bhd 1.440 0.110 11.7 -4.00 649.8 Naim Holdings Bhd 1.010 -0.070 23.6 23.90 505.8
Malaysia Airports Holdings 10.000 0.110 3.3 35.90 16,685.5 HeiTech Padu Bhd 2.300 -0.070 2.9 161.40 232.8
GHL Systems Bhd 0.735 0.100 14.5 5.80 839.0 MSM Malaysia Holdings Bhd 3.190 -0.070 1.6 98.10 2,242.5
Malaysia Smelting Corp Bhd 2.880 0.100 2.2 41.90 1,209.6 CELCOMDIGI BHD 4.090 -0.060 2.2 0.20 47,981.9
Petronas Gas Bhd 18.100 0.100 0.6 4.00 35,815.1 IGB Bhd 2.460 -0.060 2.1 11.80 3,314.1
Hong Leong Bank Bhd 19.380 0.100 0.6 2.50 42,010.4 VSTECS Bhd 2.500 -0.060 0.6 89.40 891.4
SHH Resources Holdings BHD 1.260 0.100 0.0 -10.60 126.0 Unisem M Bhd 3.530 -0.060 0.4 6.60 5,694.2
YTL Power International Bhd 3.990 0.090 18.2 57.10 32,365.5 Carlsberg Brewery Malaysia 18.460 -0.060 0.3 -4.30 5,644.1
PGF Capital Bhd 1.960 0.090 0.4 43.10 322.0 Hong Leong Financial Group 16.480 -0.060 0.1 0.20 18,873.6
Malayan Cement Bhd 4.900 0.090 0.4 15.80 6,442.5 Hong Leong Industries Bhd 10.520 -0.060 0.0 19.80 3,360.9
Tenaga Nasional Bhd 11.600 0.080 7.4 15.50 67,133.1 Teck Guan Perdana BHD 1.650 -0.060 0.0 -4.10 66.2
Tomei Consolidated Bhd 1.680 0.080 1.6 35.50 232.9 Woodlandor Holdings Bhd 0.725 -0.055 0.0 -5.80 29.0
Data as compiled on April 18, 2024 Source: Bloomberg Data as compiled on April 18, 2024 Source: Bloomberg