LANDMARK: FED COURT RULES THAT CRASH VICTIMS SHOULD BE AUTOMATICALLY COMPENSATED p5 w w w. t h e e d g e m a r k e t s. c o m

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CEOMorningBrief HOME: Hong Leong Bank seen as attractive but are there any buyers? p7 MOF Inc-own Pernas seeks summary judgment in RM46 mil lawsuit against Serba Dinamik MD, two former execs p9 WORLD: China orders surprise audit of US$3 trillion trust industry p15 Taiwanese foreign minister warns China preparing for invasion p16 Singapore regulator reiterates crypto dangers amid Hodlnaut woes p19

Malaysia’s jobless rate drops to lowest since Covid-19 Report on Page 3.

Biden signs chips bill, unleashing subsidies for US production Proponents of the new law say it is vital to competing with and countering China. Report on Page 2.

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H O M E

(Aug 9): President Joe Biden signed into law a broad competition Bill on Tuesday that includes about US$52 billion to boost domestic semiconductor research and development, calling it a “once-in-a-generation investment in America itself”. “We need to make these chips here in America to bring down everyday costs and create jobs,” said Biden at a signing ceremony for the CHIPS and Science Act on the White House South Lawn, joined by executives from US semiconductor firms and congressional leaders. Biden said he had visited the US facility where Javelin missiles were made and said the Bill would make the nation less reliant on other countries to provide the advanced chips needed for those weapons systems, as well as other products. “Unfortunately, we produce 0% of these advanced chips and China is trying to move way ahead of us to manufacture these sophisticated chips as well,” said Biden. “It’s no wonder the Chinese Communist Party actively lobbied US business against this Bill. The United States must lead the world in the production of these advanced chips; this law will do exactly that.” Spurred by the Bill, US semiconductor companies are planning billions of dollars in new investments. Ahead of the signing, the White House announced that Micron Technology Inc will invest US$40 billion in memory-chip manufacturing; and that Qualcomm Inc is partnering with GlobalFoundries, which has a facility in New York state, in a US$4.2 billion agreement to manufacture chips. Micron on Tuesday said its investments would create up to 40,000 jobs in sectors including construction and manufacturing — well beyond the initial White House estimate of 8,000 — and it expects to receive funding through the semiconductor Bill.

Legislative wins Micron Chief Executive Officer Sanjay Mehrotra attended the signing, along with Intel Corp CEO Pat Gelsinger,

Biden signs chips bill, unleashing subsidies for US production BY JENNY LEONARD, JORDAN FABIAN & LISA ABRAMOWICZ Bloomberg

BLOOMBERG

Lockheed Martin Corp CEO Jim Taiclet, HP Inc CEO Enrique Lores and the CEO of Advanced Micro Devices Inc, Dr Lisa Su. The chips Bill is one in a slew of legislative wins for the White House in recent weeks. Senate Democrats on Sunday passed a sweeping climate and spending Bill — a slimmed down version of Biden’s Build Back Better agenda — after lawmakers also approved veterans health and gun-safety Bills with bipartisan support. Biden was joined at the signing by Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi. The legislation first passed the Senate in June 2021 but lingered in the House for months, and it took more than one year to reconcile the two chambers’ versions. Some Senate Democrats had criticized the White House for not pushing the House and Pelosi to get the legislation over the finish line sooner.

Overseas reliance The chips Bill is at the centre of the Biden administration’s effort to reduce dependence on Asian suppliers like Taiwan and South Korea, whose homegrown companies are leading the market, and to address supply-chain disruptions and resulting price hikes for certain goods containing semiconductors. Biden’s team and lawmakers have stressed the national security implications of the Bill, saying it is vital to competing with and countering China. A large chunk of the federal grant is expected to go to Intel, Taiwan Semiconductor Manufacturing Co and South Korea’s Samsung Electronics Co, all of which are now building new chip fabrication facilities worth tens of billions of dollars in the US. The Bill also includes important caveats sought by Republicans and China hawks: Companies that receive the funding have to promise not to increase their production of advanced chips in China. It was a condition made by lawmakers and the White House and was included in the measure over the objection of some chipmakers. Intel, in particular, was lobbying hard against the prohibitions. In late 2021, the American chipmaker wanted to increase production in China, but the plan was rejected by the Biden administration. Read the full story Read also: China corruption probes stem from anger over failed chip plans “Beijing’s frustration comes as Washington is slapping ever-tighter restrictions on China, adding to potential vulnerability for the Communist Party.” Micron to invest US$40 bil by 2030 to build US memory plants

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KUALA LUMPUR (Aug 9): Malaysia’s labour market is expected to strengthen further in the second half of this year, after the unemployment rate in June 2022 fell to the lowest level since Covid-19 hit the country at 3.8%, according to economists. Citing the Malaysian Labour Force Statistics for June 2022 released by the Department of Statistics Malaysia, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the number of unemployed persons fell to 630,600 in June, from 637,700 persons in the previous month. The labour force situation was more stable after the number of employed people increased 0.2% to 16.57 million, from 16.54 million in May, he said. MIDF Research wrote in a note on Tuesday (Aug 9) that Malaysia’s labour market is expected to continue recovering in 2H22, supported by robust domestic demand, reopening of international borders, revival of construction projects, expansion of primary sectors amid high global commodity prices, and steady external trade activities. As a result, the research firm projects that the country’s unemployment rate will trend down to 3.8% this year, from 4.6% in 2021. However, the projected unemployment rate is still higher than the pre-Covid 19 rate of 3.4%, the research firm said.

Malaysia’s jobless rate drops to lowest since Covid-19

KUALA LUMPUR (Aug 9): Gradual increases in the overnight policy rate (OPR) will not cause a significant impact, said Deputy Finance Minister I Datuk Mohd Shahar Abdullah. Any decision made by Bank Negara Malaysia (BNM) to adjust monetary policy in the future would be implemented in a controlled manner and gradually, so that it would not affect the country’s economic recovery momentum, he said. Mohd Shahar said the central bank is of the view that a gradual rise in the OPR would not have a significant effect, especially on the bottom 40% income group (B40). “This is because one-third of loans by the B40 are at fixed rates, most of which are for buying cars and personal financing,” he said during the question-and-answer session at the Dewan Negara sitting on Tuesday (Aug 9). He was replying to a question from Senator Aziz Ariffin on a field study implemented by the Government on the preparedness of the people when the OPR is increased. Mohd Shahar said BNM through the Monetary Policy Committee decided to adjust the OPR gradually via an increase of 25 basis points (bps) in May and 25 bps in July to 2.25% currently.

Gradual increase in OPR will not cause significant impact — MOF

by Syafiqah Salim theedgemarkets.com

Bernama bloomberg

He said if the OPR is increased hastily and at a large magnitude, it could hinder economic growth and affect the well-being of the people, such as what happened in the US, which recorded an inflation rate of 9.1%, the Philippines (6.1%), andTürkiye (78.6%).

Employment growth is forecast at 2.5% this year, compared with 2% in 2021, while unemployment is expected to shrink by 15%, against a 3% increase a year ago, according to MIDF Research. “As of 1HY22, jobless rate averaged at 4%, while employment growth stood at 3.3% year-on-year (y-o-y) and unemployment fell by 13.5% y-o-y,” added the research firm. On the other hand, Julia Goh, a senior economist at UOB Global Economic and Market Research, said despite the recorded improvement, the employment outlook “waned” in June amid more cautious consumer and business sentiment. In an emailed response to theedgemarkets.com’s queries, Goh stressed that elevated costs, supply chain disruptions and rising recession risks could “moderate” the recovery in employment numbers. “Despite multiple external headwinds, we remain cautiously optimistic on the economic growth outlook in 2H22, supported by reopening drivers in Malaysia and across the region, as well as robust trade and cross-border investments. As such, labour requirements should continue to increase across the spectrum of skills and industries. “We maintain our year-end unemployment rate target of 3.6% (BNM’s estimate is around 4%),” she said.

Hence, he said the Government, through the central bank, would like to stress that various aid programmes are still available for vulnerable borrowers. “This includes facilities under BNM’s Fund for Small and Medium Enterprises, targeted loan repayment assistance by banks, as well as advisory services under various Credit Counselling and Debt Management Agency programmes.” Meanwhile, he said the inflation rate in 2022 is expected to range from 2.2% to 3.2%, while headline inflation from January to June stood at 2.5%. He added that experience worldwide had shown that high inflation rates could give a bad impact on the economy and living status of the people. “The rise in inflation is not only driven by supply side pressures. In fact, it has shown indications of demand-pull inflation. “If this matter is not addressed early, domestic demand if in excess can add to the inflationary pressures,” he said. Mohd Shahar said if the inflation situation becomes uncontrollable, the higher prices of goods would affect households’ purchasing power, particularly for the low-income group.

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H O M E

KUALA LUMPUR (Aug 9): Malaysia’s industrial production index (IPI) rose 12.1% year-on-year (y-o-y) in June 2022, supported by growth across all three components of the IPI, according to the Department of Statistics Malaysia (DOSM). In a statement on Tuesday (Aug 9), the DOSM said the manufacturing output component rose 14.5%, the electricity sector increased 14.1% while the mining segment grew 2.1%. In monthly terms, the DOSM said Malaysia’s IPI grew 9.6% in June 2022 from May 2022. Compared to a year earlier, the IPI rose 12.1% in June 2022 versus the 4.1% y-o-y growth in May 2022, according to the department. The IPI’s 12.1% y-o-y rise in June 2022 is significantly above a consensus forecast

June IPI growth exceeds expectations but headwinds seen tapering momentum

KUALA LUMPUR (Aug 9): ILB Group Bhd and its board members have filed an application to strike out a suit filed by minority shareholder BT Investment Capital Ltd, which wants to block ILB from acquiring commercial property in Petaling Jaya. ILB, along with its chairman Datuk Karownakaran @ Karunakaran Ramasamy, chief executive officer Tee Tuan Sem, executive director Makoto Takahashi, non-executive directors Wan Azfar Wan Annuar, Datuk Wan Hashim Wan Jusoh, Soh Eng Hooi and Jamilah Kamal, as well as Impian Nuri Sdn Bhd, filed the application through Messrs Chooi & Company Cheang & Ariff in the Shah Alam High Court on Monday (Aug 8). ILB (previously known as Integrated Logistics Bhd) and the other defendants claimed that BT Investment Capital had no locus standi (legal standing) to bring the action, as it is not the beneficial owner of the company’s shares, because the claimed shares are registered under UOB Kay Hian Nominees (Asing) Sdn Bhd. Tee, who affirmed an affidavit of support, said that BT Investment Capital is not a mem-

ILB seeks to strike out minorities’ suit to block property buy

BY SULHI KHALID theedgemarkets.com

BY HAFIZ YATIM theedgemarkets.com

ber of ILB, and thus cannot bring a direct claim under Section 346 of the Companies Act 2016 via an originating summons (OS). “BT Investment Capital is also not with-

for a y-o-y growth of 4.9% based on a Reuters’ survey among 12 economists. Meanwhile, RHB Research in its note on Tuesday said June’s IPI came above its expectation but highlighted that the upward momentum in IPI growth could taper towards year end, given the brewing headwinds arising from uncertainties in the global landscape. It forecast full-year IPI growth of 5.4% y-o-y for 2022. The research house said while there is continued expansion in the S&P Global Malaysia manufacturing purchasing managers index, 50.6 points in July from 50.4 points in June, thereby signalling a stable manufacturing sector performance going forward, the manufacturing sector outlook could be clouded by the impact of rising cost pressures and uncertainties in the global landscape. “The inflationary pressures have built up amid material shortage and elevated commodity prices. “The producer price index (PPI), which measures the costs of goods at the factory gate, stayed elevated at double-digits growth, albeit at a slower momentum,” it said. RHB Research said its proprietary database indicated that manufacturing activities might begin to show signs of slowdown in the upcoming months. For gross domestic product (GDP) in the second quarter of this year (2Q2022), RHB Research has maintained its projection at 6.1% in view of the robust economic indicators released for the quarter. Bank Negara Malaysia is set to announce the 2Q2022 GDP data on Aug 12.

in the extended meaning of the term ‘member’ in Section 345(a) of the Companies Act 2016 — ‘a person who is entitled to be registered as a member of a company’. “As such, it does not have the locus standi to file the OS,” Tee said in the affirmed affidavit sighted by theedgemarkets.com. It was reported that BT Investment Capital filed the suit against the logistics services company on Aug 2 to thwart the purchase of nine parcels of commercial land with shoplots in Seksyen 19, Petaling Jaya, Selangor, from Impian Nuri Sdn Bhd for RM15.9 million. The purchase price will be satisfied via the issuance of 37.78 million shares in ILB. The minority shareholder filed the suit on the grounds that the purchase could dilute shares held by existing shareholders. The OS was filed by businessman Low Bok Tek, on behalf of BT Investment Capital, to seek a hearing in the Shah Alam High Court on Aug 17. Read the full story

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Bloomberg

Landmark: Fed Court rules that crash victims should be automatically compensated KUALA LUMPUR (Aug 9): The Federal Court has ruled that road accident victims should be automatically compensated without having to sue insurance companies, according to a report by Free Malaysia Today. In delivering the landmark ruling, Federal Court judge Datuk Abdul Rahman Sebli said the provisions of the Road Transport Act 1987 should be construed to protect all motorists, including victims of road accidents. He also said that Parliament’s intention in enacting the law was to protect innocent third-party road users. According to the news portal, Rahman said this in a 140-page judgement on a decision delivered by a three-member bench he led last week — the two other judges were Datuk Seri Hasnah Mohammed Hashim and Datuk Rhodzariah Bujang — that allowed the appeals of eight motorists, seven of whom were injured in motor accidents. Five of the appeals involved Pacific & Orient Insurance Co Ltd, Amgeneral Insurance Bhd, Allianz General Insurance Company (M) Bhd, and Malaysian Motor Insurance Pool. The victims had filed a negligence suit in the sessions courts against the owners of vehicles and/or drivers involved in their accidents for damages. Their appeals came about as the insurance companies managed to obtain a declaration from the High Court to nulli-

theedgemarkets.com

fy the policies of motorists involved in the accidents due to allegations of misconduct on the part of the vehicle owners, which caused the accident victims to be denied monetary compensations that were due to them. FMT reported that in one of the cases, the vehicle owner had “sold” the vehicle to a third party through what is known as “sambung bayar” (continuing payments), but without informing the insurance company. The owner later asked the court to declare his policy void. Based on that order, the insurer had refused to cover the victim’s losses. In another case, even after a full trial at a lower court had found the driver of the vehicle to be negligent, the insurance company declined to pay for the damages of the accident the driver caused after alleging it had been defrauded. Eventually, the victim of the accident merely held a paper judgment that was “not even worth the paper it was written on”, the Federal Court was quoted as saying. The court also said this was unfair because the victim’s constitutional rights to be treated fairly had been infringed. In allowing the appeals, the apex court awarded RM150,000 in costs to each of the successful parties in the appeal.

According to Rahman, the Act has to balance two competing interests — that of innocent third parties affected by a motor vehicle accident versus insurance companies. In the case of the insurers, the law has to protect them from being victimised by fraudulent claims. But in setting the balance between these competing interests, the loss has to fall on one party. And if that is the case, the Act has decided that such a loss should be borne by the insurer, he said.This, according to FMT, follows the principle established in a 1959 Indian Supreme Court case (British India General Insurance vs Capt Itbar Singh). Rahman, in explaining the Federal Court’s decision, said it is because it is compulsory for all vehicle owners to have insurance coverage and that the road transport department would not issue road tax for those without an insurance coverage. This provides that if a vehicle injured a victim, that person could sue the owner or the driver of the vehicle as the vehicle owner has insurance coverage. Hence, the insurer should automatically step in and “indemnify” the victim, without the victim having to sue the insurer. FMT further wrote, quoting an unnamed lawyer, that many grey areas had sprung up in motor accident cases over the years and caused huge problems for innocent road victims. This judgement resolves those difficulties in one fell swoop, the lawyer said.

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Hong Leong Bank seen as attractive but are there any buyers? Banks’ price-to-book ratio as at Aug 9, 2022

by Chester Tay theedgemarkets.com

Banks

KUALA LUMPUR (Aug 10): Hong Leong Bank Bhd chairman Tan Sri Quek Leng Chan’s reported attempt to pare down his controlling stake in the bank may not be an easy task, given the size of his shareholding and the premium valuation, whose share price is hovering near the historic high of RM21.20 it reached in May. Hong Leong Bank, with a market capitalisation of RM45.26 billion, is a screaming buy among analysts tracking the banking stock because of its attractive return-on-equity (ROE) and asset quality.There is not a single sell call on Hong Leong Bank. Nonetheless, this raises the question whether its rivals will pay a premium for it? Quek controls 62% of Hong Leong Bank via Hong Leong Financial Group Bhd (HLFG), which is way above the 10% limit that any individual is allowed to hold in a financial institution, according to the Financial Services Act 2013 (FSA). The FSA also provides that no person can acquire control over a bank — holding more than a 50% interest — unless they have obtained the prior written approval of the finance minister, on the recommendation of Bank Negara Malaysia. Apart from Hong Leong Bank, there are two other local banks whose major shareholders have yet to reduce their individual shareholdings to comply with the FSA threshold, namely Public Bank Bhd and AMMB Holdings Bhd. In Public Bank, Tan Sri Teh Hong Piow owns 23.41%, of which 22.77% is held indirectly. As for AMMB,Tan Sri Azman Hashim holds 11.81%, being the second largest shareholder after Australia and New Zealand Banking Group Ltd, which owns 21.64%.

Market cap (RM bil)

Last price (RM)

Price-to-book ratio (times)

90.07 45.13 106.29 5.82 55.30 24.85 22.03 12.86 5.39 4.73

4.64 20.82 8.88 2.70 5.28 5.90 19.24 3.88 3.48 2.14

1.9 1.5 1.3 1.1 0.9 0.9 0.9 0.8 0.8 0.5

Public Bank Hong Leong Bank Malayan Banking Bank Islam Malaysia CIMB Group Holdings RHB Bank Hong Leong Financial Group AMMB Holdings Alliance Bank Malaysia Affin Bank Source: Bloomberg

In terms of valuation, Hong Leong Bank has a price-to-book ratio (PB) of 1.47 times, according to Bloomberg data, making it the second highest among Malaysian banks after Public Bank, which has a PB of 1.88 times. In contrast, the country’s largest bank, Malayan Bank Bhd, has a PB of 1.27 times, while the PB for CIMB Group Holdings Bhd is 0.91 times. Despite its premium valuation, analysts believe the bank is worth more than its current market price.There are 17 analysts covering the stock and 14 have it on “buy”. The consensus target price on the stock is RM23.55. The stock closed at RM20.88 on Tuesday (Aug 9), up six sen or 0.29% from a day earlier when Reuters reported, citing sources, that Quek was weighing options for his stake in the bank — including a merger. At its current price, Hong Leong Bank has a market capitalisation of RM45.26 billion. Although Hong Leong Bank’s PB is relatively high, according to analysts, the stock is still deemed fairly-valued after taking into account its ROE, compared to peers like AMMB and RHB. (See chart) “Everybody has their own requirement, higher PB may not be prohibitive. People

Comparison of major banks in the context of PB ratio and Forward ROE 13

Public Bank

PB Ratio

12 11 10

Hong Leong Bank

AMMB Holdings RHB Bank

Malayan Banking

9 8

CIMB Group Holdings

7 6

0.60

0.80

Data as at Aug 9, 2022

1.00

Source: Bloomberg

1.20

1.40

Forward ROE

1.60

1.80

may pay a premium, maybe for asset quality, knowing that you can sleep well at night after buying it,” said a local bank-backed analyst. He also said Quek, 80, may feel an increasing need to sell, given his age. “I don’t think the ‘grandfather-ing’ rule of allowing individuals like Quek to own such a high shareholding would apply to his children in the case of inheritance,” the analyst told The Edge. CGS-CIMB’s Winson Ng, in his Aug 1 report on the banking sector, said Hong Leong Bank’s asset quality was one of the best in the sector, putting it among the most defensive banks against credit risks from the Covid-19 pandemic. “Earnings catalysts include a swift increase in associate contribution from Bank of Chengdu and above-industry loan growth,” he said. However, one analyst who declined to be named does not think there is much cost synergy to be reaped from a merger with Hong Leong Bank. “Hong Leong is already very efficient. The attractive point is their talent and culture. You can choose to hire these people [from Hong Leong, instead of a merger]. I don’t know who is going to buy [Quek’s stake], but I think it is safe to rule out parties like Public Bank, CIMB Group and AMMB,” the analyst said. If the potential Hong Leong Bank stake sale in materialises, it could be Quek’s most significant corporate move after the Hong Leong Bank-EON Bank Bhd merger in 2011 and the attempt to privatise Hong Leong Capital Bhd in 2013. The 2013 attempt failed as it could not secure adequate acceptance from Hong Leong Capital’s minority shareholders.

2.00

Read also: Hong Leong Bank, Hong Leong Financial Group top Bursa’s gainers list

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Hartalega quarterly’s earnings since 1QFY2019 Revenue (RM mil)

Net profit/loss (RM mil) 3,902.83 2,259.54

4000

4000 3000

3000 2000 1000

706.35 124.87

845.67 88.28

640.1

1000 0

0 -1000

2000

-197.90

1Q

2Q

3Q

4Q

1Q

2Q

FY19 Data compiled on Aug 9, 2022 *Financial year ends March 31

3Q

4Q

1Q

FY20

2Q

3Q

FY21

4Q

1Q

2Q

3Q

FY22

4Q

1Q

-1000

FY23 by chester tay theedgemarkets.com

Source: Bursa Malaysia

Hartalega 1Q net profit slumps to RM88 mil from RM2.26 bil a year earlier by sulhi khalid theedgemarkets.com

KUALA LUMPUR (Aug 9): Hartalega Holdings Bhd’s first quarter net profit slumped to RM88.28 million from RM2.26 billion a year earlier as the rubber glove manufacturer’s revenue dropped significantly at a time when glove average selling price (ASP) and sales volume declined after rising to a record high during the crucial period of the Covid-19 outbreak, which began in early 2020. Covid-19-driven demand for gloves is, however, now seen normalising as global vaccination progress leads to anticipation that the Covid-19 outbreak can be curbed. According to Hartalega’s Bursa Malaysia filing on Tuesday (Aug 9), higher energy and labour costs due to the increase in natural gas tariffs and Malaysia’s minimum wage implementation had also affected the company’s profitability. Hartalega said revenue dropped to RM845.67 million in the first quarter ended June 30, 2022 (1QFY23) from RM3.9 billion a year earlier. “No dividend was proposed or declared for the current quarter under review,” Hartalega said. “The lower revenue was mainly due to the normalising of the ASP and a decrease in sales volume by 28%, as compared to 1QFY22 when both the ASP and sales demand hit a record high during the pandemic period. “In addition to the significant reduction in revenue, performance in 1QFY23 was

TDM loses Indonesian lawsuit over plantation fire, ordered to pay RM275.1 mil compensation

also affected by higher energy and labour costs due to the increase in natural gas tariffs and minimum wage implementation,” the company said. On a quarterly basis, Hartalega said revenue decreased by RM123 million or 12.7% in 1QFY23 compared to the preceding 4QFY22. “Profit before tax for the quarter (1QFY23) decreased by RM83.9 million or 38.5% to RM134.1 million as compared to 4QFY22,” the company said. Looking ahead, Hartalega said the group is cautiously optimistic of the longerterm prospects of the glove sector, given the expected continued post-pandemic growth in demand for rubber gloves. The company said several headwinds are expected to remain because of the continuing Russia-Ukraine conflict as well as the ongoing Covid-19-driven lockdowns in certain major cities in China. These events have caused further strain on global supply chains which have in turn led to higher commodity and raw material prices, according to Hartalega. “The glove sector is faced with higher operating costs due to rising inflationary pressure resulting from the higher electricity and natural gas tariffs, coupled with the new minimum wage policy in Malaysia which came into effect on May 1, 2022. In addition, the sector is also experiencing escalating market competition exacerbated by the continued oversupply situation in the global glove industry. “Notwithstanding, the glove sector is expected to see a structural step-up in demand in the longer term with increased glove usage in emerging markets that have low glove consumption base. In addition, the increase in demand is also expected with higher awareness of hygiene and health consciousness among healthcare practitioners post-pandemic,” Hartalega said. Read the full story

KUALA LUMPUR (Aug 9): TDM Bhd’s 93.75%-owned Indonesian subsidiary has lost a legal battle to the Ministry of Environment and Forestry of Indonesia in relation to a fire incident in 2019 at its land in the West Kalimantan province. Its subsidiary, PT Rafi Kamajaya Abadi, which TDM is in the midst of divesting its entire interest in, has been ordered by Court of Sintang to pay a compensation of IDR270.81 billion (about RM81.24 million) for the environmental loss to the National Account of Indonesia. The subsidiary is also ordered to rehabilitate the environment on the affected area due to the fire incident of 2,560ha and to reactivate the affected ecology system with the cost of IDR646.22 billion (approximately RM193.86 million), TDM said in a stock exchange filing on Tuesday (Aug 9). TDM also said the Court rejected Rafi Kamajaya Abadi’s counterclaims against the Ministry of Environment and Forestry of Indonesia. Rafi Kamajaya Abadi’s legal counsel will be filing an appeal against these decisions, said TDM. “The Company is analysing its potential financial and operational impact against Rafi Kamajaya Abadi, the Company and the group,” it said. According to TDM’s latest annual report, Rafi Kamajaya Abadi had on Dec 27 last year received lawsuit claims from the Ministry of Environment and Forestry of Indonesia for the alleged violation against the laws and regulations related to a fire incident that occurred in the unit’s plantation in 2019. The total claims filed by the ministry back then amounted to IDR1.001 trillion (RM293.67 million). Shares of TDM closed unchanged at 22.5 sen per share on Tuesday, giving it a market capitalisation of RM387.65 million.

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MOF Inc-own Pernas seeks summary judgment in RM46 mil lawsuit against Serba Dinamik MD, two former execs by Hafiz Yatim theedgemarkets.com

KUALA LUMPUR (Aug 9): Perbadanan Nasional Bhd (Pernas), who is suing Serba Dinamik Holdings Bhd’s managing director Datuk Dr Mohd Abdul Karim Abdullah and two former senior executives of the oil and gas services outfit’s subsidiaries to claim the return of RM46.49 million over a share investment that went bad, has applied for a summary judgement against the trio. It filed the application on Aug 1 through Messrs Azmi & Associates, claiming that the defendants’ defence has no merit, and that there are no longer triable issues to be decided by the court. Pernas, a Minister of Finance Inc (MOF Inc)-owned company with the mandate to lead the development of Malaysia’s franchise industry, initiated the lawsuit in May. The two other defendants named in the lawsuit are Rosland Othman and Rosli Hamat. Rosland was previously senior vice president (special project) under Serba Dinamik Group Bhd (SDGB), while Rosli was senior VP (investment) of Serba Dinamik International Ltd (SDIL). Both SDGB and SDIL are Serba Dinamik’s subsidiaries. In the statement of claim filed, Pernas said it entered into an investment agreement and a put option agreement with Rosland and Rosli on Jan 24, 2018, under which Pernas agreed to purchase 13.5 million Serba Dinamik shares. The purchase price was not stated. Under the deal, the parties agreed that should Serba Dinamik shares fall below RM3 per share, Rosland and Rosli would pay Pernas the difference between RM3 and the actual share price it fell to, within seven days after a notice from Pernas. Pernas also inked a put option agreement with the duo, which gave Pernas the right to sell the shares it bought to the duo at an agreed option price that would take into consideration Pernas’ investment cost, at 12% interest per year. According to Pernas, Rosland and Rosli then inked a supplementary option agreement on June 27, 2019, which stipulated that if the duo failed to buy the Serba Dinamik shares owned by Pernas should Pernas exercise its put option, then Abdul Karim would be required to complete the acquisition.

Pernas said Abdul Karim was prepared to absorb the losses that could be suffered by Pernas should Serba Dinamik’s share price fall below RM3.

Decline in value of Serba Dinamik shares On May 31, 2021, Serba Dinamik’s share price plunged to RM1.43 per unit amid news that its auditor had red-flagged certain issues with its accounts, which led to Pernas issuing a notice to both Rosland and Rosli on June 9, 2021, seeking payment of RM17.61 million. When the duo asked Pernas for a sixmonth extension to fulfil the payment, Pernas agreed to extend only until July 31, 2021 and informed the duo that they would have to pay RM21.52 million as Serba Dinamik’s share price had dropped further. But July 31, 2021 came and went and the duo still were not able to fulfil the payment. Instead, they repeatedly sought for more time to fulfil their contractual obligation. Finally, Pernas agreed to let them pay up by Oct 29, 2021, with the amount owed being revised to RM22.06 million as Serba Dinamik’s share price had fallen further. This sum was again revised to RM23.47 million following Bursa Malaysia’s suspension of Serba Dinamik shares on Oct 22, 2021, when the stock was last traded at 35 sen per share. By March 17 this year, following the duo’s failure to pay, Pernas exercised its put option to sell its Serba Dinamik shares to the duo at RM46.44 million. But neither Rosland nor Rosli was able to fulfil the agreement. This led Pernas to issue a notice to Abdul Karim to buy over the shares, but Abdul Karim similarly failed to honour the guarantee.

As such, Pernas initiated the lawsuit, seeking for either the payment of RM23.47 million from the duo, and/or the payment of RM46.44 million for the put option shares from the trio.

Abdul Karim’s defence and counterclaim On June 22 this year, Abdul Karim filed an application to strike out Pernas’ suit while denying knowledge of the dealings that Rosland and Rosli had with Pernas and the supplementary option agreement that Pernas claimed the duo had purportedly entered into with him. In his defence filed by Messrs Rahman Rohaida, Abdul Karim also filed a counterclaim against Pernas, saying Pernas could have sold the shares it owned earlier to mitigate its losses but failed to do so due to its own negligence, which resulted in higher losses. He claimed this showed Pernas was negligent in handling its investment and had not considered the rights of the defendants. As such, he wanted Pernas to compensate him for general and aggravated damages, as well as costs. Pernas responded by filing an application on Aug 1 to strike out Abdul Karim’s counter-claim. Meanwhile, Rosland and Rosli, in their defence filed by Messrs Jehan & Co, said they no longer hold any posts in Serba Dinamik or any senior management posts within the group. The duo also claimed that the proposal for the share investment was borne from Serba Dinamik’s request, and that they committed to the agreement on behalf of Serba Dinamik and not in their individual capacity. They also said Pernas knew that they never had the capacity to buy the shares on their own as they were just employees of Serba Dinamik at the time.

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Apple jumps onto Malaysia’s mobile payment bandwagon reuters

by Justin Lim theedgemarkets.com

KUALA LUMPUR (Aug 9): Apple has partnered with Ambank, Maybank and Standard Chartered Malaysia to offer its mobile payment services to Malaysian customers. “Customers with Visa and Mastercard cards from banks including AmBank, Maybank and Standard Chartered Bank can now use Apple Pay, with American Express cards to be available with Apple Pay later this year,” the consumer electronic company announced on its website on Tuesday (Aug 9). “Merchants such as KFC, Maxis, Machines, McDonald’s, Mydin, Pizza Hut, Starbucks, U Mobile, Uniqlo, Village Grocer and Watsons — and apps and websites including Shopee, Sephora, Atome and Adidas — now offer customers the ability to pay with Apple Pay.” Apple’s vice president of Apple Pay and Apple Wallet Jennifer Bailey said the company is delighted to bring Apple Pay to Malaysia, providing an easier, safer and more secure way to pay with iPhone, Apple Watch, iPad and Mac. “Our customers in Malaysia will benefit from using Apple Pay with the support of the most popular banks, merchants, and our customers’ favourite apps,” she added. To use the service, users only need to add their payment cards to the Apple Wallet on their devices, then hold their iPhones or Apple Watches near the contactless terminals and authenticate the payment using Face ID or Touch ID. “When making purchases in Safari, customers can use Apple Pay without having to create an account, key in a PIN, fill out lengthy forms, or repeatedly type in shipping and billing information. Every Apple Pay purchase is authenticated with Face ID, Touch ID, or a device passcode, as well as a one-time unique dynamic security code,” it said. Face ID is a facial recognition feature, while Touch ID is an electronic fingerprint recognition feature provided by Apple. Apple Pay was first introduced in 2014. Today, Apple Pay is available in over 60 countries and regions and works with more than 10,000 banks and network partners worldwide. In a separate statement, Malayan Banking Bhd (Maybank) announced that Maybank and Maybank Islamic Mastercard and Visa credit, debit and prepaid

cards can be used with Apple Pay in Malaysia and Singapore, effective Tuesday. It also added that American Express cards will soon be included in the mobile payment service. “With our growing presence in this business segment, supported by the combined card user base of 15 million across both markets, Maybank is well placed to leverage the ease, safety and privacy of Apple Pay that would benefit our customers in both countries,” said Maybank group chief executive officer (CEO) (community financial services) Datuk John Chong Eng Chuan. Meanwhile, AMMB Holdings Bhd (AmBank) said its customers can add any AmBank/AmBank Islamic Visa or Mastercard Credit Card to the Apple Wallet to make fast and seamless cashless transactions with their iPhone or Apple Watch. Its group CEO Datuk Sulaiman Mohd Tahir said the adoption of digital payments has accelerated over the past few years, benefitting both merchants and consumers. “Most Malaysians are likely to have their mobile phones ready at hand, and in view of that, we are enhancing our mobile banking services by providing more convenient ways to make payments. We are thrilled to expand the possibilities with Apple Pay to bring easy, secure and private payments to our customers,” Sulaiman said in a statement. Meanwhile, Standard Chartered Malaysia said that introducing Apple Pay to customers is aligned with the bank’s focus in harnessing digital power to transform the banking experience of the future.

“We are proud to be one of the first banks in Malaysia to support Apple Pay to provide easy, secure and private payments to our customers. With contactless and digital payments in Malaysia going mainstream, we aim to provide an effortless and seamless digital payment experience to complement and enrich our customers’ digital lives. “Apple Pay gives us an opportunity to be at the forefront of the rapidly growing digital finance ecosystem and supports our ambition to strengthen our local footprint via a digital-first approach,” said Sammeer Sharma, managing director and head of consumer, private and business banking at the bank. Meanwhile, GHL Systems Bhd announced that its merchant terminals are able to accept Apple Pay without additional charges, integration or programming required. “We believe that the launch of Apple Pay is timely, following the reopening of borders and the growing trend of cashless transactions. With the versatility of Apple Pay, customers can easily perform transactions using Apple Pay at any NFC-based card payment terminal. All of GHL merchant terminals are Apple Pay ready,” said GHL Systems CEO Kevin Lee. Malayan Banking Bhd’s share price gained one sen or 0.11% to end at RM8.89 on Tuesday, valuing it at RM106.41 billion; while AmBank also advanced one sen or 0.26% to RM3.89, giving it a market value of RM12.93 billion. GHL Systems closed down one sen or 0.86% to RM1.15, giving it a market capitalisation of RM1.31 billion.

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news In brief Texchem 2Q net profit jumps 16 times to RM6.73 mil, declares 8 sen dividend KUALA LUMPUR (Aug 9): Texchem Resources Bhd saw its net profit jump about 16 times to RM6.73 million in the second quarter ended June 30, 2022 (2QFY22) from RM424,000 a year earlier, thanks to recovery of restaurant division amid the country’s transition to endemicity, as well as the reopening of international borders. Earnings per share (EPS) increased to 5.70 sen from 0.35 sen the prior year, the Sushi King owner and operator told Bursa Malaysia on Tuesday (Aug 9). Besides owning and operating the Sushi King chain of restaurants, Texchem’s other main businesses include industrial, food and polymer engineering. Quarterly revenue in 2QFY22 rose 15.42% to RM301.46 million from RM261.19 million in 2QFY21, as revenue from the restaurant division rose to RM72.9 million from RM40 million. Texchem also declared a first interim single tier dividend of eight sen per share, with an ex-date of Aug 23, to be paid on Sept 19. For the first half ended June 30, Texchem’s cumulative net profit soared 181% to RM19.815 million from RM7.06 million, while cumulative revenue grew 15.35% to RM608.95 million, from RM527.93 million. Compared to the immediate preceding quarter, Texchem’s net profit dropped 48.54% from RM13.08 million in 1QFY22, as revenue declined 1.96% from RM307.49 million due to lower contribution from its food and restaurant divisions. Cumulative EPS rose to 16.78 sen from 5.85 sen. — by Syafiqah Salim

Lagenda Properties to acquire 422acre land in Perak for RM92 mil cash

Messrs Mazars PLT appointed as Gabungan AQRS’ new auditor

KUALA LUMPUR (Aug 9): Lagenda Properties Bhd on Tuesday (Aug 9) announced it is acquiring a 422-acre land in Perak for RM92.4 million cash. Taraf Nusantara Sdn Bhd — a wholly owned subsidiary of Blossom Eastland Sdn Bhd, which is in turn wholly owned by Lagenda — entered into a conditional sale and purchase agreement with Ladang Awana Sdn Bhd in relation to the proposed acquisition. The exercise involves 42 block titles of development and agricultural land, all located within Mukim Durian Sebatang, in the Hilir Perak district of Perak. In a Bursa Malaysia filing, Lagenda said the land is adjoining Lagenda Teluk Intan, a master planned ongoing affordable township development by the group, and is strategically located about 4km off West Coast Expressway (WCE) to its west. Geographically, the Teluk Intan town centre is located approximately 7km due north of Lagenda Teluk Intan. “The proposed acquisition is undertaken to acquire the subject lands which are located adjacent to the group’s ongoing affordable township development of Lagenda Teluk Intan and hence, are suitable for near-term development as future phases of the Lagenda Teluk Intan township. “The projected gross development value (GDV) for the subject lands is expected to be around RM920 million over its development period and is expected to increase the revenue derived from Lagenda’s property development business and contribute positively to the future earnings and profitability of the group,” it said. — by Shazni Ong

KUALA LUMPUR (Aug 9): Messrs Mazars PLT has been appointed as the new external auditor of Gabungan AQRS Bhd with effect from Aug 11. Gabungan AQRS said in a bourse filing on Tuesday (Aug 9) that it is of the view that a change in auditor who has served the company for almost 12 years is necessary to heighten corporate governance. Last month, Gabungan AQRS Bhd announced that it has received a notice in writing from its former auditor Messrs BDO PLT on its resignation as auditor of the construction firm and that BDO’s term of office would end after 21 days from July 21. Gabungan AQRS said it has selected Mazars as the new external auditor based on its experience, capability and resources. — by Shazni Ong

KLCC Stapled Group’s 2Q net profit rises 15% to RM165 mil, declares 8 sen dividend KUALA LUMPUR (Aug 9): KLCC Stapled Group’s net profit for the second quarter ended June 30, 2022 (2QFY22) rose 14.69% to RM165.18 million, from RM144.01 million a year ago, as revenue grew 25% to RM350.31 million from RM280.17 million. The group declared interim dividends comprising 0.99 sen and 7.01 sen relating to KLCC Property Holdings Bhd and KLCC REIT respectively for 2QFY22, totalling eight sen per stapled security, to be payable on Sept 28. These brought KLCC Stapled Group’s total income distribution to 16 sen for the first half of FY22. The group said in a Bursa Malaysia filing on Tuesday (Aug 9) that the improved year-on-year performance was mainly due to a better performance of its retail segment, driven by lower rental assistance and higher advertising income. — by Hailey Chung

MARC affirms ratings for George Kent’s ICP, IMTN programmes with stable outlook KUALA LUMPUR (Aug 9): Malaysian Rating Corp Bhd (MARC) has affirmed its ratings of MARC-1 and A+ on George Kent (Malaysia) Bhd’s RM100 million Islamic Commercial Papers (ICP) and RM500 million Islamic Medium-Term Notes (IMTN) programmes, subject to a combined limit of RM500 million — along with a stable outlook. In a statement on Tuesday (Aug 9), the rating firm said the affirmation is premised on George Kent’s strong liquidity position, healthy balance sheet, and established presence of more than 80 years in the sector of water meter manufacturing. These strengths are counterbalanced by the uncertainty around its construction business, cost pressures, as well as its volatile working capital profile. MARC noted that George Kent’s meter business has demonstrated fair resilience through the pandemic. Despite the pandemic-related restrictions, production volume declined by 7.3% year-on-year to 2.16 million units in the financial year ended March 31, 2022. “While cost pressures rose from rising brass costs amid tighter supply, margin has been steady to date, thanks to [the increase in product selling price] and some forward buying by George Kent,” it said. In regard to George Kent’s construction segment, MARC said the timing for the implementation of the remaining phases to construct a glove manufacturing plant in Lumut, Perak, however, is uncertain at this juncture, depending on the outlook for the rubber glove industry. George Kent’s outstanding order book of about RM486 million stems from a single project of constructing the glove manufacturing plant. Notably, Phase 1A of the project is currently ongoing with 81% of it completed as of end-May and less than RM40 million to complete the remaining 19%. — by Shazni Ong

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Constitution (Amendment) Bill on anti-partyhopping does not apply to senators, says PM Bernama

KUALA LUMPUR (Aug 9): The Constitution (Amendment) (No.3) Bill that prohibits Members of Parliament from switching parties does not apply to senators or the members of the Dewan Negara. Prime Minister Datuk Seri Ismail SabriYaakob, when tabling the Bill for the second reading in the Dewan Negara onTuesday (Aug 9), said the matter was agreed upon by the Special Select Committee after taking into consideration several inputs. “This is because there are two categories of members of the Dewan Negara, namely those appointed by the Yang di-Pertuan Agong, and those selected by their states based on their membership in the State Legislative Assembly representing their respective political parties. “Therefore, the provision to ban party-hopping at this level does not apply to the members

KUALA LUMPUR (Aug 9): The government will launch the National Energy Policy 2021-2040 later this month to boost investment flows and advance Malaysia’s sustainable development goals, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed. He said there is a need to have policies and regulations in place to capitalise on Malaysia’s transition to cleaner energy as the global energy transition would create a range of challenges and opportunities for the energy sector and the economy. “I sincerely hope that the National Energy Policy will contribute to a higher quality of life for Malaysians — both in terms of a stronger economy and a greener community,” he said in his keynote address at the halfday seminar on Sustainable Development Goal 7 (SDG7) here, on Tuesday (Aug 9). The half-day seminar was jointly organised by Tenaga Nasional Bhd and the Economic Planning Unit. Mustapa said Malaysia should utilise alternatives such as renewable energy (RE) and new energy as the country begins to reduce its dependency on coal. Malaysia has revised upwards its national RE capacity target to 31% from 20% by 2025, he noted.

of the Dewan Negara, taking into consideration several aspects of the legislation at the state level, other than the fact that it requires consultation and consent from the Yang di-Pertuan Agong if it involves members who were appointed by the Yang di-Pertuan Agong. “All senators and other stakeholders would be provided with explanation through an engagement session first, before the amendment to the Constitution on party-hopping be made for the members of the Dewan Negara,” he said. Meanwhile, the prime minister reiterated the Government’s commitment to ensuring political stability, and preventing the country from facing a continuous political crisis, through the tabling of the Bill. He said he is also confident that the amendment Bill is also capable of stopping any elected representative from changing parties without any valid or reasonable excuse, hence ensuring political stability in the country in the long run. “I have high hope that the Bill will be supported and passed unanimously by the members of the Dewan Negara in the spirit of Keluarga Malaysia. “This Bill is indeed a historic political milestone for the country, as it is formulated through consultation and discussions between the two blocs, the Government and the Opposition,” he said. On July 28, the constitutional amendment dubbed the Anti-Hopping Bill was passed by the Dewan Rakyat, after it received two-thirds majority support from the members through a bloc voting.

Govt to launch national energy policy soon — Mustapa Bernama

The RE contribution in the installed capacity mix is projected to increase to 40% from 31% by 2035 in the Malaysia Renewable Energy Roadmap. In addition, carbon capture, utilisation, and storage technology for carbon mitigation should also be explored, and if found feasible, must be embraced, he said. “We acknowledge the need to strengthen international cooperation to ensure universal access to affordable and reliable energy. We need clarity in our energy agenda, and [to] ensure that the lights are always on. “We also need to ensure that our system remains robust and resilient in managing disruptions during the global transition of energy,” Mustapa said, adding there would be cost implications and systemic changes that the government needs to address.

Malaysia, Indonesia sign MOU to enhance defence cooperation Bernama

KUALA LUMPUR (Aug 9): Malaysia and Indonesia deepened their defence cooperation with the signing of a Memorandum of Understanding (MOU) on Tuesday (Aug 9), encompassing five main scopes. Senior Defence Minister Datuk Seri Hishammuddin Tun Hussein said the MOU involves the sharing of information on defence issues, as well as cooperation between the two armed forces at various levels including exchange of officers, military training and education. “Apart from that, it also covered bilateral dialogue and negotiations on strategic defence and military issues based on joint interest in defence science and technology, as well as defence industry,” he said in a statement. Earlier, Hishammuddin and Republic of Indonesia Defence Minister Prabowo Subianto chaired the 42nd General Border Committee meeting between Malaysia and Indonesia at Wisma Perwira here. Hishammuddin said the meeting focused on efforts to bolster defence cooperation and socio-economic development along the border. He said the meeting with his counterpart also agreed to hold a Malaysia-Indonesia Land, Sea and Air Joint Exercise (LATGABMA MALINDO DARSASA) involving all three branches of services, which will be implemented again in 2023 with a focus on anti-terrorism. “Furthermore, this is in line with the commitment I raised with Sarawak Chief Minister Tan Sri Abang Johari Abang Openg that the federal government will focus fully on improving defence at the border, including the Sarawak-Kalimantan border. “This follows the Indonesian government’s plan to move their capital to Kalimantan,” he said. He said the meeting also reached an agreement on security and defence at the border including speeding up the assignment of the Malaysian Armed Forces and the Indonesian National Armed Forces at the Joint Posts (GABMA), involving 14 posts in both countries. “In addition, we have also agreed to reactivate coordinated land, sea and air patrols that have been delayed due to Covid-19, as well as establishing cybersecurity cooperation,” he said.

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Najib: SRC trial judge involved in proposing and advising on RM140 mil loan facility to SRC KUALA LUMPUR (Aug 9): Former prime minister Datuk Seri Najib Razak has contended that the judge who sentenced him to 12 years in jail and a fine of RM210 million was directly involved in proposing, strategising and advising on a RM140 million loan facility given by Maybank to help establish SRC International Sdn Bhd, a subsidiary of 1Malaysia Development Bhd (1MDB). In a bid to adduce fresh evidence in his final appeal against a guilty verdict in the SRC trial, Najib said that while Datuk Mohd Nazlan Mohd Ghazali was not responsible for setting up SRC, the judge, who was general counsel and company secretary for Maybank Group in 2006, was instrumental in providing the loan facility for SRC. Maybank’s wholly owned strategic advisory division, Bina Fikir Sdn Bhd, was tasked with the research and advisory matters pertaining to the establishment of SRC. The alleged involvement of Maybank through Maybank Investment and Bina Fikir in the setting up of SRC was never brought up at any point in the SRC trial, and no witnesses from these entities were called or offered by the prosecution. In an affidavit in reply to the prosecution in the case, Najib is contending that the loan of RM140 million given by Maybank is the very same money from which RM42 million ended up in his private accounts, and of which he was convicted. “Nazlan was intimately involved in the loan facility extended to 1MDB,” Najib’s affidavit claimed. “The additional evidence I seek to adduce shows that Maybank had proposed the establishment of SRC to 1MDB, and that it was formally engaged to provide strategic advisory services for this purpose,” Najib said in his affidavit. “I am of the respectful view that these facts are sufficient to connect Maybank and Justice Nazlan to the setting up of SRC, which is an important event in the factual matrix of my case.” Najib then went on to reiterate that this information was not known to him at the trial stage of his case and was only made known to him on May 9 this year when an anony-

by Timothy Achariam theedgemarkets.com

mous package was sent to his house which contained documents about Nazlan’s involvement in Maybank’s loan to 1MDB. “I was unaware of Justice Nazlan’s knowledge and involvement in the proposing, strategising, and advising on that transaction leading to the establishment of SRC,” Najib said in the affidavit, adding that this was a “conflict of interest”. He said Nazlan’s involvement in these transactions “severely impaired” the judge’s “objectivity and independence”. Najib also said it is “alien” and “startling” that he is required to carry out due diligence on a High Court judge before trial, and that the former PM is under no duty to do so. The Pekan MP added that Nazlan has a special duty to disclose this information before the trial and the judge’s failure to do so had rendered the proceedings at the High Court null and void. On July 28, 2020, Najib was found guilty by Nazlan of all seven graft charges in relation to SRC, comprising one abuse of power charge in approving Retirement Fund (Incorporated)’s (KWAP) loans of RM4 billion to SRC between 2011 and 2012, and three counts each of criminal breach of trust (CBT) and money laundering involving RM42 million worth of SRC funds.

Najib was sentenced to 12 years in jail and fined RM210 million for the abuse of power charge, and 10 years’ jail for each of the CBT and money laundering charges. The jail terms are to run concurrently. On appeal, the Court of Appeal upheld the conviction and sentence. In a strongly worded judgement, it remarked that SRC, which started off as a national interest venture, had in the end become a national embarrassment. Najib is appealing the Court of Appeal decision at the Federal Court, which is fixed for Aug 15 to 26. He is asking the apex court to admit additional oral evidence from several witnesses, including four Malaysian Anti-Corruption Commission officers, which the former PM said will establish Nazlan’s conflict of interest. Najib’s affidavit was filed by Messrs Zaid Ibrahim Suflan TH Liew and Partners, who are his new solicitors in the matter as he recently dismissed his previous lawyers Tan Sri Muhammad Shafee Abdullah and Harvinderjit Singh. The former premier also appointed senior criminal lawyer Hisyam Teh Poh Teik as lead counsel.

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China orders surprise audit of US$3 trillion trust industry (Aug 9): China’s top auditor is conducting a review of the US$3 trillion trust industry, paving the way for a potential overhaul of a key shadow banking sector where losses on property loans are mounting. In an unscheduled move, the National Audit Office — which previously led an examination of bank exposures to Jack Ma’s Ant Group Co — has for the past month been inspecting the books of at least 20 trust firms, including the top five, to gauge the risks they pose to financial stability, according to people familiar with the matter. The firms are being asked to report on their risky loans to developers and any plans to dispose of them, the people said, asking not to be named as they’re not authorised to speak publicly. The audit office is expected to submit its conclusions to policy makers in Beijing, who may decide on the future reforms of the sector, the people said. While it is unclear what regulatory action the scrutiny will spur, the move illustrates how concerned authorities are about contagion from the property sector destabilising the financial industry. Trust firms have this year defaulted on about 58 billion yuan (US$8.6 billion) of investment products linked to property developers, which were sold to wealthy Chinese, according to industry data tracker Use Trust. These investors have joined homebuyers and bond fund managers in feeling the pain of a liquidity crisis that’s driven dozens of developer defaults and frozen construction of hundreds of projects across the country.

Bloomberg reuters

The firms are being asked to report on their risky loans to developers and any plans to dispose of them…. While it is unclear what regulatory action the scrutiny will spur, the move illustrates how concerned authorities are about contagion from the property sector destabilising the financial industry.

China’s trust industry, after at least six rounds of restructuring since its inception in 1979, combines characteristics of commercial and investment banking, private equity and wealth management. Firms in the sector pool household savings to offer loans and invest in real estate, stocks, bonds, commodities, and even bottles of sorghum liquor. No other firms in the financial industry operate across all these asset classes. Trusts were once a popular avenue of funding for the property sector. Until recently, trust products were seen by wealthy Chinese individuals and institutions as a safe place to park their money. The inspection by the audit office is still in progress and no conclusions have been made so far, the people said. China’s National Audit Office is responsible for inspecting the central government’s budget implementation, and reports its results to the Premier. The agency is also brought in for ad-hoc reviews of state-owned institutions, which pose a threat to the broader economic stability. Its inspection of more than a quarter of the trust industry shows the government is seeking an independent assessment of the risks involved, the people said. None of the trust firms were immediately available to comment when reached by Bloomberg. The top auditor and the China Banking and Insurance Regulatory Commission, which oversees trust firms, didn’t immediately respond to Bloomberg requests for comment. Over the past few years, authorities have taken a series of measures, including tougher capital requirements, to cool what had been the fastest-growing corner of the shadow banking industry. The nation’s 68 trust firms held a combined 20.2 trillion yuan of assets at the end of March, down about 5.5% over the past two years, according to the China Trustee Association. About three quarters of that was in money trusts, of which developer trusts made up about 11%. The inspection comes as trust firms have more recently emerged as unlikely white knights for the embattled property sector by becoming mini-developers themselves. Trust firms, including MinMetals Trust Co and Zhongrong Trust Co, have bought stakes in at least 10 real estate projects this year, betting that unfinished homes will eventually yield cash to pay off some of the US$230 billion in property-backed funds they have issued to investors.

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TAIPEI (Aug 9): Taiwan’s foreign minister said on Tuesday (Aug 9) that China is using the military drills it launched in protest against US House of Representatives Speaker Nancy Pelosi’s visit as an excuse to prepare for an invasion of the self-ruled island. Joseph Wu told a press conference in Taipei that Taiwan, which is claimed by China as its own, would not be intimidated, even as the drills continued, with China often breaching the unofficial median line down the Taiwan Strait. “China has used the drills...to prepare for the invasion of Taiwan,” Wu said, urging international support to safeguard “peace and stability across the Taiwan Strait”. “It’s conducting large-scale military exercises, missile launches as well as cyberattacks, a disinformation campaign and economic coercion, in an attempt to weaken public morale in Taiwan.” Wu spoke as military tensions simmered, after the scheduled end on Sunday of four days of the largest-ever Chinese exercises surrounding the island, drills

Taiwanese foreign minister warns China preparing for invasion by Sarah Wu & Yimou Lee Reuters

Joseph Wu told a press conference in Taipei that Taiwan, which is claimed by China as its own, would not be intimidated, even as the drills continued, with China often breaching the unofficial median line down the Taiwan Strait.

that included ballistic missile launches, and simulated sea and air attacks, in the skies and seas surrounding Taiwan. China’s Eastern Theatre Command announced on Monday that it would conduct fresh joint drills focusing on anti-submarine and sea assault operations, confirming the fears of some security analysts and diplomats that Beijing would keep up the pressure on Taiwan’s defences. As Pelosi left the region last Friday, China also ditched some lines of communication with the US, including theatre-level military talks and discussions on climate change. Taiwan started its own long-scheduled drills on Tuesday, firing howitzer artillery out to sea in the southern county of Pingtung. US President Joe Biden, in his first public comments on the issue since Pelosi’s visit, said on Monday he is concerned about China’s actions in the region but not worried about Taiwan. “I’m concerned they are moving as much as they are,” Biden told reporters in Delaware, referring to China. “But I don’t think they’re going to do anything more than they are.” A senior Pentagon official said Washington is sticking to an earlier assessment that Beijing would not try to invade Taiwan in the next two years. Under Secretary of Defense for Policy Colin Kahl also said the US military would continue to carry out voyages through the Taiwan Strait in the coming weeks. China has never ruled out taking Taiwan by force, and on Monday Chinese Foreign Ministry spokesman Wang Wenbin said that China was conducting normal military exercises “in our waters” in an open, transparent and professional way, adding that Taiwan is part of China.

Pelosi says Xi reacted to her Taiwan visit ‘like a scared bully’ WASHINGTON (Aug 9): US House of Representatives Speaker Nancy Pelosi has said members of Congress will not be intimidated by China’s reaction to her visit to Taiwan and that Chinese President Xi Jinping was acting “like a scared bully”. Just because Xi “has his own insecurities, [it] doesn’t mean that I am going to have him do my schedule for members of Congress”, Pelosi said on Tuesday on NBC’s Today show. In a separate appearance on MSNBC’s Morning Joe programme, Pelosi

by Billy House & Josh Wingrove Bloomberg

said China cannot control the schedules of members of Congress, and, “we’re not going to be accomplices to his isolation of Taiwan”. “I think he’s in a fragile place,” Pelosi said, referring to China’s economy. “He’s acting like a scared bully.” Pelosi’s stop in Taiwan last week while in the Asia-Pacific region drew a strong response from China, which conducted military exercises designed

to demonstrate its ability to encircle the island and launched missiles that likely flew over Taipei and into waters Japan claims as an exclusive economic zone. Pelosi said her trip was meant to reinforce President Joe Biden’s focus on the region, although the White House has repeatedly said the decision to go was the House speaker’s alone. Read also: Pelosi trip hinders Biden effort to galvanise Asia against China

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Worst-performing precious metal silver may have seen bottom by Ranjeetha Pakiam & Andrea Bossi Bloomberg

(Aug 9): Silver’s been the worst performer among major precious metals in 2022, but prices may have fallen far enough to spark a modest recovery. The white metal has lost about 11%, weighed down by the stronger US dollar, rising interest rates and slowing growth. But prices could turn higher from later this year as the electronics and photovoltaics sectors support industrial consumption, while retail and jewelry demand look strong, James Steel, chief precious metals analyst at HSBC Securities USA Inc, said in a note early this month. “We believe silver is oversold,” Steel said. “Much of silver’s industrial demand will be well supported and will not reflect overall industrial sluggishness,” while price declines will stimulate demand from key consumers China and India, he said.

(Aug 9): Electric-vehicle (EV) sales in China are forecast to hit a record six million this year as demand for cleaner cars surges. The China Passenger Car Association (PCA) has raised its estimate from 5.5 million, after releasing data showing deliveries of new-energy vehicles (NEVs) more than doubled in July to around 486,000 units — accounting for 26.7% of the new auto market. Overall passenger vehicle sales rose 20% from a year earlier to 1.84 million units, the PCA said on Tuesday. The increased forecast represents a doubling from last year’s 2.99 million NEV sales, underscoring the dramatic growth in demand for cleaner cars in China, and the challenge for legacy automakers to adapt in a market that is rapidly going green. The increased forecast of six million is still “relatively cautious”, the PCA said in a statement, adding it could be further increased at the start of the fourth quarter. Tesla Inc delivered 28,217 cars, with 8,461 going to the local market and 19,756 exported, mostly to Europe and Asia. The sharp drop of 64% from June was mainly caused by production shutdowns to upgrade its Shanghai factory as part of a plan to double annual capacity to one million vehicles.

Still, headwinds to the white metal’s rally exist as the world braces for the withdrawal of stimulus and an economic downturn. While HSBC remains positive, it has cut its forecasts as silver follows gold and copper lower. The bank now sees the average price at US$22.25 an ounce for 2022 and at US$23.50 for 2023. UBS Group AG expects silver to trade lower to US$19 by early 2023. Silver was trading at US$20.54 an ounce by 3 p.m. in London, after bouncing back from a two-year low in mid-July. Silver’s trajectory will closely follow gold, and investors should consider buying

both metals when the Fed makes a proper dovish pivot and there’s meaningful easing of policy to support growth, said Wayne Gordon, executive director for commodities and FX at UBS Group’s global wealth management unit. “Once we get to that recovery phase in gold, we believe silver can really outperform the yellow metal,” said Gordon. Gold gained 0.5%, moving to US$1,797.61 an ounce as the dollar edged 0.2% into the red, with traders awaiting a key report on US consumer inflation dueWednesday. Palladium rose, while platinum fell.

China EV sales forecast to hit record six mil

cities with budget cars, delivered 14,037 vehicles last month, including 1,382 to overseas markets. LeapmotorTechnologies Ltd, which competes in the same price range as Hozon, shipped a record 12,044 cars. Overall, domestic automakers are grabbing a bigger slice of the NEV market. The main Chinese brands commanded 73% of NEV passenger car sales last month, up nine percentage points from a year earlier. Local upstarts including the likes of Xpeng Inc, Li Auto Inc, and Nio Inc accounted for 16.5%, while the main international joint ventures (which exclude Tesla) took just a 6.5% share. The central and local governments have also taken steps to help the auto industry recover from Covid-19 lockdowns and restrictions that crushed sales earlier this year. In May, the central government cut purchase taxes on some low-emission passenger vehicles by 50%, while municipal governments pitched in with subsidies and incentives to entice buyers. Despite sporadic outbreaks of Covid-19 in parts of the country, overall auto production and supply chains have largely recovered. Passenger-vehicle sales may resume double-digit growth this half, after falling for four consecutive quarters because of supply chain constraints, Bloomberg Intelligence analyst Steve Man said in a recent note.

Bloomberg bloomberg

BYD Co, which earlier this year ended production of cars powered only by fossil fuels, earlier reported monthly sales of 162,530 units — both pure-electric vehicles and plug-in hybrids. While Tesla and BYD dominate EV sales, smaller start-ups are also making inroads as demand for clean cars surges. Eight-year-old Hozon New Energy Automobile Co, which started by targeting customers outside big

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(Aug 9):Thai Airways International Pcl will receive key financial support from the government for its 80 billion baht (US$2.3 billion) capital raising and debt-to-equity swap plan aimed at helping the state-controlled carrier come out of its pandemic-induced bankruptcy. State-owned banks will lead in funding new loans, converting debt and injecting equity capital into Thai Air as part of a revised revamp plan the airline gave the court for approval last month, Finance Minister Arkhom Termpittayapaisith said in an interview with Bloomberg News on Monday (Aug 8). The ministry and other agencies will continue to maintain a combined stake of at least 40%, but the proportion won’t exceed 50% to induce the carrier to stay competitive, he added. The carrier expects to emerge from its court-monitored debt-restructuring plan by 2024. It filed for bankruptcy protection in 2020, having posted losses every year from 2013. But a rebound in global air travel has boosted its cash flow and reduced the amount of loans that was specified by in the court’s original plan. “The situation in Thai Airways is much better”, and that has boosted creditors’ and shareholders’ confidence in its survival and future, said Arkhom. State-owned banks will

(Aug 9): ByteDance Ltd has acquired one of China’s largest private hospital chains for about US$1.5 billion (RM6.69 billion), deepening a foray into healthcare via one of the largest domestic tech deals since Beijing’s internet crackdown. TikTok’s Chinese owner paid about 10 billion yuan (RM6.6 billion) to take full ownership of Amcare Healthcare, which runs women’s and children’s hospitals in cities from Beijing to Shenzhen, according to a person familiar with the matter, asking to not be identified discussing private information.Two ByteDance subsidiaries now own a combined 100% stake of Amcare, according to corporate registry tracker Qichacha. ByteDance’s healthcare app Xiaohe competes with Alibaba Health Information Technology Ltd and Ping An Healthcare and Technology Co in online consultations, hospital appointments, and wellness services, a burgeoning US$89 billion sector boosted by nationwide measures to curb the pandemic. The social media giant better known for creating addictive content apps joins fellow tech giants from Apple Inc to Amazon.com Inc that are exploring ways to digitise and disrupt the traditional healthcare industry. The deal is also one of the largest to emerge from the Chinese tech industry since regulators began curbing “disorderly capital

Thai Air’s US$2.3 bil capital-raising plan led by government by Anuchit Nguyen & Suttinee Yuvejwattana Bloomberg

be able to offer the entire 13 billion baht in new loans the airline is now seeking — which is about half the 25 billion baht requested earlier.The revised amount can be fully funded by state banks, he said. The reopening of Thailand’s borders and those of other countries will also support cash flow.The airline’s most-profitable flights are those with connections in Europe. The improving finances and capital-raising plan will accelerate the resumption of trading in the airline’s shares, which were suspended in May, he said. The previous timeline for trading to begin again was in 2025.

reuters

ByteDance pays US$1.5 bil for China hospital chain in healthcare foray Bloomberg reuters

expansion” in late 2020, discouraging the sorts of big-ticket acquisitions that Alibaba Group Holding Ltd and Tencent Holdings Ltd used in previous years to get into and dominate new markets. Representatives for Amcare did not respond to requests for comment on the

acquisition, which was first reported by financial media outlet Caixin. A spokesperson for Xiaohe confirmed ByteDance’s acquisition, but declined to comment on the size of the deal. Founded in 2006 in Beijing, Amcare operates seven women’s and children’s hospitals, two integrated clinics, and five post-partum centres across China, according to the company’s website. In 2020, it obtained a government licence for in-vitro fertilisation operations by acquiring a Beijing hospital. Prior to ByteDance’s takeover, its investors included Hillhouse Capital, China Renaissance, and Warburg Pincus, according to Qichacha. A hit app factory known for its addictive news and short-video platforms, ByteDance has over the years expanded beyond its core online entertainment business, albeit with mixed success. While still the world’s most valuable start-up, its market cap has shrunken alongside a brutal global tech sell-off and it may be seeking growth in new areas. Its investments span sectors from education and cleaning robots to hotpot and coffee chains. At the start of this year, the Beijing-based start-up downsized its investment arm after regulators threatened to smother the flurry of deals that tech behemoths cut annually.

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SINGAPORE (Aug 9): Cryptocurrency investment is “highly hazardous” but meltdowns in the sector have not created financial-stability risks for Singapore, regulators in the city-state said after another digital-asset firm ran into trouble. The Monetary Authority of Singapore (MAS) has rescinded its in-principle approval for crypto lender Hodlnaut to obtain a licence to provide digital payment token services under the Payment Services Act, an MAS spokesperson said in an emailed statement on Tuesday.That came after Hodlnaut told MAS of its intention to withdraw its application amid its halt in customer withdrawals announced on Monday. It had been one of the few firms granted in-principle approval by MAS under the Act. “MAS has been continually reminding the general public that dealing in cryptocurrency is highly hazardous,” the regulator’s spokesperson said in response to an inquiry about Hodlnaut’s situation. “Not only are the values of cryptocurrencies ex-

Singapore regulator reiterates crypto dangers amid Hodlnaut woes by Joanna Ossinger Bloomberg

tremely volatile, customers’ monies are not protected under the law.” Entities that currently or previously have been affiliated with Singapore in some way have been at the epicentre of this year’s crypto meltdown. Bitcoin and ether, the two biggest cryptocurrencies, are both down about 50% year-to-date.The terra/luna ecosystem suffered a massive collapse and hedge fund

Three Arrows Capital is in liquidation. Lenders like Vauld and Babel Finance have halted customer withdrawals.Trading platform Zipmex also halted withdrawals, but it has since partially unfrozen client funds. In its statement, the MAS noted that PSA licensing involves regulation around money laundering and terrorism financing risks as well as technology risks, but that the firms are not subject to risk-based capital or liquidity requirements, nor are they required to safeguard customer money or digital tokens from insolvency risk. It said that is similar to the approach taken in most jurisdictions. Still, the trouble in the sector has not had broader implications for the island nation, it said. “The turmoil in the cryptocurrency market has not posed financial stability risks in Singapore,” the MAS spokesperson said. “Spillover to the domestic financial system has been very limited as our key financial institutions do not have significant exposures to either distressed cryptocurrency firms or cryptocurrencies.”

Thai central bank set to get more powers in crypto law overhaul by Anuchit Nguyen, Suttinee Yuvejwattana & Thomas Kutty Abraham Bloomberg

(Aug 9):Thailand plans to overhaul its digital rules to confer more powers on the central bank, and tighten the oversight of platforms offering cryptocurrencies and other tokens, after a recent market rout left retail investors reeling from losses. The planned amendments to the regulations will “bring the central bank to be part of it”, Finance Minister Arkhom Termpittayapaisith said in an interview. The Securities and Exchange Commission (SEC), which currently has the sole mandate to supervise the industry under the rules passed in 2018, had been asked to take the lead on the overhaul, he said. The move to tighten the rules comes after Thai authorities were criticised for not acting promptly to protect investors at Zipmex (Thailand) Ltd, a licensed cryptocurrency exchange that briefly suspended coin withdrawals. While the platform has since lifted most of the freeze on transactions, it has filed for a moratorium in Singapore for protection from creditors against any lawsuits, and to buy time for raising funds.

“Right now, the central bank has no room to enter into the regulatory framework except for notifying that cryptos are not a legal means of payment for goods and services,” Arkhom said on Monday (Aug 8). “The framework is not clear enough to regulate the industry.” Almost US$2 trillion (RM8.91 trillion) has been wiped off the global crypto market since a peak in November last year in an implosion exacerbated by rising interest rates. Leveraged funds and lending platforms blew up along the way, exposing regulatory gaps that officials worldwide are now rushing to plug. In Thailand, the number of active trading accounts shrank to about 230,000, from a peak of almost 700,000 in December, official data showed. Bitkub Online Co, Thailand’s largest crypto exchange, and its chief executive were fined by the SEC in June for creating “artificial trading volume” on the platform. The company and five officials were also fined for breaching guidelines in listing the

company’s own digital coins. While Bank of Thailand governor Sethaput Suthiwartnarueput has said the authority wants to draw “red lines” on cryptos, it is set to test a central bank digital currency (CBDC) by the end of the year in a pilot project. But it had no plans yet to issue a retail CBDC, it said last week. Arkhom said tighter crypto regulations will not be aimed at throttling innovation and technology, but to ensure greater protection for investors similar to in the stock market. “For the stock exchange, you have the paper to prove you are the owner. In the digital world, you have nothing except for the consent that you put at the bottom, which people never read,” Arkhomm said. “We are trying to protect investors, as well as keeping players in the industry on fair terms.” Read also: Norwegian bitcoin miner heads north to escape record power bills

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news In brief Reuters

Indonesian lawmakers call for tougher rules to avert another coal crisis JAKARTA (Aug 9): Indonesian legislators on Tuesday pressed the government to tighten rules on domestic coal sales, amid concern that miners will choose to pay fines instead of meeting a requirement to sell a quarter of their output to local power generators. The parliamentary energy committee met during recess on Tuesday, fearing the world’s biggest thermal coal exporter was headed for a repeat of a domestic supply crisis late last year that saw exports banned for a few weeks in January, triggering panic among foreign buyers. Indonesia imposes a so-called Domestic Market Obligation (DMO) where miners must sell 25% of their output onshore, at prices capped at US$70 per tonne for power generators and US$90 per tonne for local industry. Though the coal inventory of state power utility Perusahaan Listrik Negara (PLN) was above the secure level of 4.5 million tonnes, supplies were declining as power demand rises, its chief executive Darmawan Prasodjo told the hearing. “If this continues, we may see a crisis again,” Darmawan said. — Reuters

Record rain leaves at least eight dead in South Korean capital SEOUL (Aug 9): At least eight people died in and around the South Korean capital of Seoul overnight, authorities said on Tuesday, after torrential rain knocked out power, caused landslides and left roads and subways submerged. The southern part of Seoul received more than 100mm (3.9 inches) of rain per hour on late Monday, with some parts of the city having received 141.5mm of rain, the worst rainfall in decades, according to Korea Meteorological Administration (KMA). The accumulated rainfall in Seoul since midnight Monday stood at 451mm as of 2pm Tuesday, with more rain forecast. At least five people died in Seoul and three others in the neighbouring Gyeonggi Province by early Tuesday, the Central Disaster and Safety Countermeasures Headquarters said. Four died after being drowned in flooded buildings, one was believed to have been electrocuted, another person was found under the wreckage of a bus stop, and the other two died in a landslide, it said. At least nine people were injured, while seven were missing. — Reuters

China locks down part of Tibet’s capital in zero-Covid push

Flight bookings to Hong Kong surged 249% after quarantine cut — agency

Philippine GDP growth lower than expected in 2Q

(Aug 9): China is imposing a new round of lockdowns, as vacation hotspots become ensnared in its drive to suppress Covid-19, with parts of Tibet’s capital shut down and thousands of tourists stuck on the tropical island of Hainan. After living most of the pandemic virtually virus-free, the mountainous region of Tibet reported an outbreak that rapidly grew from four to 22 cases on Monday (Aug 8), according to local authorities. The second-largest city of Shigatse was locked down for three days, CCTV reported, along with areas deemed mid- and high-risk for the virus in Lhasa, the capital. The crackdown in Tibet, which had only a single Covid case back in 2020 before Sunday and which has emerged as a population vacation spot for Chinese, comes as authorities try to stamp out a larger outbreak in Hainan, an island province in China’s south known for its beaches and duty-free shopping. China reported a total of 828 local infections for Monday, with 471 coming from Hainan. The national number has doubled since last Thursday. — Bloomberg

HONG KONG (Aug 9): Hong Kong’s decision to reduce the number of days arrivals must spend in hotel quarantine triggered an immediate surge in flight bookings to the city, said China’s largest travel online agency. The number of bookings for flights to the financial hub increased 249% on Monday, the day the decision was announced, from a day earlier, according to data from Trip.com. Outbound flight orders rose 176% from the previous day, the data showed. Inbound bookings are mainly from places including Bangkok, London, Taipei, Singapore, and Manchester, while those from Hong Kong mainly plan to fly to similar destinations, according to Trip. com. The surge on China’s largest online travel agency likely reflects increased demand from mainland residents looking to use Hong Kong as their stopover as its Covid-19 rules are less stringent. From Friday, the city requires arrivals to spend three nights in a hotel — down from seven currently — followed by four days in which they are restricted from entering high-risk places like bars and hospitals. — Bloomberg

Read the full story

Read the full story

MANILA (Aug 9): The Philippine economy expanded less than expected in the second quarter of 2022 (2Q22), but at a pace still in line with the official 2022 growth target, giving the central bank leeway to further tighten monetary policy to curb red-hot inflation. The Southeast Asian country’s gross domestic product (GDP) was 7.4% higher in 2Q22 than a year earlier, growing more slowly than the downwardly revised 8.2% annual rate seen in the previous quarter, and the median 8.6% forecast in a Reuters poll. It was the slowest growth in three quarters, but the second-fastest so far in Asia in 2Q22, Economic Planning Secretary Arsenio Balisacan said. The Bangko Sentral ng Pilipinas has flagged the possibility of raising key interest rates further by 50 basis points in its Aug 18 policy meeting, confident the economy can withstand a less accommodative policy. It has raised interest rates by a total 125 basis points since the start of the year to tame inflation, which soared to its fastest pace in nearly four years in July. Balisacan attributed the 2Q growth rate to strong construction and household consumption, among other factors. — Reuters

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M A R K E T S

CPO RM 3,818.00-46.00 OIL US$ 97.120.34 RM/USD 4.4578 RM/SGD 3.2328 RM/AUD 3.1104 RM/GBP 5.424 RM/EUR 4.5413

Top 20 active stocks NAME VOLUME CHANGE CLOSE YTD MARKET (MIL) (RM) CHANGE CAP (%) (RM MIL) G3 Global Bhd 392.40 0.000 0.040 -50 116.1 Metronic Global Bhd 271.40 -0.010 0.055 -54.95 83.7 Dagang NeXchange Bhd 57.40 0.000 0.890 17.11 2,809.1 My EG Services Bhd 46.40 0.000 0.785 -26.64 5,797.6 Hextar Industries Bhd 45.20 0.000 0.360 125.00 413.0 KPower BHD 35.20 0.030 0.280 -33.33 152.0 Yew Lee Pacific Group Bhd 34.70 -0.020 0.265 0.00 141.1 Serba Dinamik Holdings Bhd 32.00 0.005 0.100 -71.43 371.0 Top Glove Corp Bhd 25.70 0.000 0.985 -61.97 7,887.2 TWL Holdings Bhd 24.60 0.000 0.065 30.00 239.7 Infoline Tec Group Bhd 22.40 0.005 0.345 0.00 125.3 NWP Holdings Bhd 20.20 -0.005 0.240 -2.04 126.3 Unique Fire Holdings Bhd 18.20 0.010 0.245 0.00 98.0 SFP Tech Holdings Bhd 17.00 0.020 0.940 0.00 752.0 Green Packet Bhd 16.50 0.000 0.055 -31.25 87.8 Ho Wah Genting BHD 16.20 -0.010 0.140 -31.71 92.8 Kumpulan Jetson BHD 15.6 0.015 0.255 21.43 68.3 PESTECH International Bhd 15.40 0.015 0.450 -44.79 443.0 Umedic Group Bhd 15.30 -0.005 0.515 0.00 192.6 Sarawak Consolidated 15.30 0.010 0.175 -14.63 101.9 Data as compiled on Aug 9, 2022 Source: Bloomberg

Top gainers (ranked by %) NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Vsolar Group Bhd 0.010 100.00 975.7 -33.33 48.3 Amlex Holdings Bhd 0.700 52.17 1.0 100.00 187.7 AT Systematization Bhd 0.015 50.00 1,521.0 -50.00 90.0 Pasukhas Group Bhd 0.020 33.33 382.8 -20 38.1 Grand Central Enterprises Bhd 0.390 27.87 0.6 16.42 76.8 Focus Dynamics Group Bhd 0.025 25.00 105.0 -37.50 159.3 Kanger International Bhd 0.055 22.22 7,445.9 -72.50 33.2 Sanichi Technology Bhd 0.030 20.00 1,889.1 20.00 42.1 Barakah Offshore Petroleum 0.030 20.00 1,009.8 -62.50 30.1 Aldrich Resources Bhd 0.030 20.00 36.7 -25.00 33.4 Meridian Bhd 0.035 16.67 1,890.4 -46.15 31.6 Fast Energy Holdings Bhd 0.035 16.67 528.1 -63.16 25.8 Ea Technique M Bhd 0.035 16.67 70.0 -56.25 18.6 Pinehill Pacific Bhd 0.365 15.87 20.3 -29.81 54.7 Golden Pharos BHD 0.225 15.38 1,187.3 -23.73 31.6 SKB Shutters Corp Bhd 0.355 14.52 3,977.9 -47.01 46.9 Olympia Industries Bhd 0.080 14.29 3,814.9 -5.88 81.9 Sealink International Bhd 0.080 14.29 267.0 -42.86 40.0 GIIB HOLDINGS Bhd 0.080 14.29 50.1 -38.46 47.3 Parlo Bhd 0.09 12.5 1307.6 -40 42.2 Data as compiled on Aug 9, 2022 Source: Bloomberg

Top gainers (ranked by RM) NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Amlex Holdings Bhd 0.70 0.240 1.0 100.00 187.7 Fraser & Neave Holdings Bhd 22.78 0.220 169.9 -7.92 8,355.2 Petronas Gas Bhd 17.30 0.180 112.9 -3.32 34,232.1 British American Tobacco 10.36 0.140 166.6 -25.89 2,958.1 PMB Technology Bhd 3.25 0.110 545.0 32.33 4,066.1 Ideal Capital Bhd 1.65 0.100 124.0 25.95 825.0 Signature International Bhd 1.49 0.100 725.4 7.97 437.3 Heineken Malaysia Bhd 23.94 0.100 308.6 14.88 7,232.2 Scientex Packaging Ayer Keroh 2.17 0.090 3.5 -9.58 760.8 Telekom Malaysia Bhd 5.57 0.090 1,838.2 1.27 21,097.3 Tenaga Nasional Bhd 8.44 0.090 1,532.3 -9.64 48,556.0 Grand Central Enterprises Bhd 0.39 0.085 0.6 16.42 76.8 Hong Leong Financial Group 19.32 0.080 256.3 11.42 22,126.1 Uchi Technologies Bhd 3.13 0.070 894.1 -0.32 1,418.1 YSP Southeast Asia Holdings 2.00 0.070 188.6 4.17 282.0 BIG Industries Bhd 0.83 0.070 14,368.8 -4.60 52.7 Hong Leong Bank Bhd 20.88 0.060 1380.7 12.14 45262.0 Warisan TC Holdings Bhd 1.09 0.060 0.9 -16.79 71.0 Keck Seng Malaysia Bhd 3.520 0.060 8.2 2.33 1,264.7 MyTech Group BHD 0.685 0.055 4,680.0 -26.34 153.3 Data as compiled on Aug 9, 2022 Source: Bloomberg

World equity indices CLOSE CHANGE CHANGE (%) DOW JONES 32,832.54 29.07 0.09 S&P 500 4,140.06 -5.13 -0.12 NASDAQ 100 13,159.16 -48.53 -0.37 FTSE 100 7,486.18 3.81 0.05 AUSTRALIA 7,029.83 9.21 0.13 CHINA 3,247.43 10.50 0.32 HONG KONG 20,003.44 -42.33 -0.21 INDIA 58,853.07 465.14 0.80 Data as compiled on Aug 9, 2022

CLOSE CHANGE CHANGE (%) INDONESIA 7,102.88 16.03 0.23 JAPAN 27,999.96 -249.28 -0.88 KOREA 2,503.46 10.36 0.42 PHILIPPINES 6,468.97 34.73 0.54 SINGAPORE 3,270.98 -11.90 -0.36 TAIWAN 15,050.28 29.87 0.20 THAILAND 1,618.80 9.93 0.62 VIETNAM 1,258.85 2.10 0.17 Source: Bloomberg

Top losers (ranked by %) NAME CLOSE CHANGE VOLUME YTD MARKET (%) (‘000) CHANGE CAP (%) (RM MIL) Key Alliance Group Bhd 0.005 -50.00 180.0 -66.67 18.4 Dolomite Corp Bhd 0.015 -40.00 7.5 -50.00 8.9 AE Multi Holdings Bhd 0.015 -25.00 100.8 -50.00 32.5 PUC BHD 0.020 -20.00 1,617.3 -86.21 32.5 Mlabs Systems Bhd 0.020 -20.00 54.1 -33.33 29.0 Alam Maritim Resources Bhd 0.025 -16.67 3,072.7 0.00 38.3 XOX Networks Bhd 0.025 -16.67 92.0 -16.67 28.4 Metronic Global Bhd 0.055 -15.38 271,403.4 -54.95 83.7 MQ Technology Bhd 0.030 -14.29 15,197.7 -40.00 37.5 Bina Puri Holdings BHD 0.035 -12.50 145.00 -22.22 55.9 Top Builders Capital Bhd 0.035 -12.50 44.0 0.00 24.7 TechnoDex Bhd 0.075 -11.76 168.1 -34.78 63.3 LKL International Bhd 0.040 -11.11 264.0 -42.86 38.9 Iqzan Holding Bhd 0.040 -11.11 18.0 -20.00 8.9 Trive Property Group BHD 0.045 -10.00 50.0 50.00 56.9 mTouche Technology Bhd 0.045 -10.00 39.0 -50.00 41.7 Lambo Group BHD 0.050 -9.09 897.1 -41.18 77.0 Gopeng BHD 0.405 -8.99 45.0 -1.22 163.4 Bioalpha Holdings Bhd 0.105 -8.70 1,521.7 -44.74 144.7 BTM Resources Bhd 0.105 -8.70 181.0 -38.24 17.2 Data as compiled on Aug 9, 2022 Source: Bloomberg

Top losers (ranked by RM) NAME CLOSE CHANGE VOLUME YTD MARKET (RM) (‘000) CHANGE CAP (%) (RM MIL) Nestle Malaysia Bhd 134.700 -2.100 32.5 0.37 31,587.2 Malaysian Pacific Industries 31.900 -0.500 73.6 -35.37 6,344.8 Rapid Synergy Bhd 12.800 -0.300 8.5 28.64 1,368.3 Sam Engineering & Equipment 4.080 -0.150 700.8 -27.14 2,208.9 Kuala Lumpur Kepong Bhd 22.260 -0.140 595.8 2.20 23,999.8 Dufu Technology Corp Bhd 2.970 -0.130 2,076.5 -30.77 1,573.8 QL Resources Bhd 5.050 -0.130 3,150.8 10.50 12,290.0 Petronas Dagangan Bhd 22.100 -0.120 312.6 7.28 21,955.3 Khind Holdings Bhd 2.850 -0.100 4.1 -25.20 114.2 PPB Group Bhd 16.400 -0.100 186.8 -4.09 23,330.6 Pintaras Jaya BHD 2.220 -0.100 16.0 -20.71 368.2 Ajinomoto Malaysia Bhd 11.880 -0.100 13.7 -22.86 722.3 HextarTechnologies Solutions 3.670 -0.090 5.0 46.22 472.1 Kotra Industries Bhd 4.110 -0.090 2.0 30.06 608.2 Kobay Technology BHD 2.980 -0.080 2,235.3 -50.58 966.1 Chin Hin Group Bhd 5.020 -0.080 812.5 92.34 4,441.2 Ta Ann Holdings Bhd 3.91 -0.07 274.8 11.4 1722.2 UMS Holdings BHD 1.91 -0.07 2 -4.5 77.7 Matrix Concepts Holdings Bhd 2.200 -0.070 353.4 0 1,835.3 Chin Well Holdings BHD 1.71 -0.07 1030.1 23.91 489.8 Data as compiled on Aug 9, 2022 Source: Bloomberg