THE SYED MOKHTAR FACTOR the Tycoon’S Involvement in Ecoworld Indicates a Much Bigger Role in the Merger with UEM Sunrise and Deep Ties with Liew Kee Sin

WEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018

HeveaBoard’s differentiation strategy to sustain profits P. 8 SUBSCRIBER COPY/NOT FOR RESALE SUBSCRIBER COPY/NOT

Prudent Deleum focuses on core biz

O&G services player cautiously optimistic on sector’s recovery. P.13&14 Comintel’s FocusLife tough task to turn around Banking on bids for ‘We have jobs worth RM600 mil after disposing of only profitable unit. P.14

weathered Sporty Three FourStar in the Cashless boost P. 5 fitness with QR code DECEMBER 2019 running for influencers the storm’ payment 14 immigrationProperty impart tips Sapura Energy Bhd group on how to CEO Tan Sri Shahril systemEnter the dragon stay fit and Shamsuddin feels the re-tender fashionable. worst is over. The group P.14 Read has strengthened FITNESS MEETS about it in its presence in five FASHION P.16&18 THREE SPORTY INFLUENCERS IMPART THEIR TIPS ON HOW TO STAY FIT AND FABULOUS. PURSUIT continents despite the DECEMBER 2019 DECEMBER 2019 1 P.IV&V turmoil in the oil and 00362 PP 19339/05/2018 (034908) gas sector. P.10-12 9 772289 234001 www.focusmalaysia.my

Peninsular Malaysia RM3.50 NOV 30-DEC 6, 2019 WEEKLY ISSUE 362 A reprieve for F&N Government Bursa’s new house buyers hampered by should focus regulation CEO, following Federal rising cost, on real issues what does it Court ruling P.12 competition P.15 P.22 mean? P.29

THE SYED MOKHTAR FACTOR The tycoon’s involvement in EcoWorld indicates a much bigger role in the merger with UEM Sunrise and deep ties with Liew Kee Sin. P.8&9 2 contents FocusM | Nov 30-Dec 6, 2019

Syed Mokhtar a key player in ECW-UEMS merger? • Through a web of linkages, the tycoon emerges as the largest shareholder of ECWD. He would not only benefit from an entity with a larger landbank but also the possibility of injecting some of his land assets into the merged company 15 P.8&9 24

▪ Mainstream ▪ Columns 16 26 10 A Question of Business: Raising 28 QuestionTime: As Sri Ram enters revenue through the anti-money Taman Rimba fray, should Khalid laundering law Samad be sued? 12 Federal Court verdict on EOT a 29 PoundFoolish: Bursa Malaysia welcome relief for homebuyers has a new regulation CEO. So 14 A re-tendering for the RM2.5 bil what? immigration system? 30 Social protection necessary to 15 Intensifying competition, price quickly end poverty, hunger pressures weigh on F&N 16 Sime Darby: New year sees con- ▪ Markets tinued portfolio rationalisation 31 Boycott Black Friday, save the 18 MSPO-certified palm oil may world 20-21 not command a premium price 28 20-21 Will Westports 2 be a game ▪ Income+ changer for the company? 32 Underserved SMEs are driving 22 Government should focus on the the growth of P2P financing real issues for the country’s sake 34 Face up to financial reality

▪ Property ▪ Focus Lite 23 Share units in strata properties: Time bombs, one after another 36 Couple enrich themselves with SEGi’s PACE 24 Indian hotel chain Oyo targets more rooms in Southeast Asia 37 Kenanga focuses on ethics and integrity 25 Gamuda Cove to commence water theme park at end-2021 22 30 26 Difficult road ahead for WeWork

EDITORIAL CUSTOMER HOTLINES Editor-in-Chief: P Gunasegaram | Executive Editors: Amie Ong, Doreenn Leong | Tel: 603-7710 3883 Senior Writers: Emmanuel Samarathisa, Ranjit Singh | Writers: Xavier Kong, Sharina Ahmad, Chee Jo-Ey | Fax: 603-7710 3882 Sub-Editor: Geraldine Tan | Senior Designers: Eugnice Han, Quek Chun Leng | Editorial: Ext 106 Designer: Purvinn Raj Chai | Photographer: Iqbal Ismail Email: [email protected] CORPORATE Advertising: Ext 107 Executive Director, Business Development: Christopher Ang Email: [email protected] ADVERTISING Circulation: Ext 122 Email: [email protected] Sales Director: Pearly Ng (012) 2012139 | Sales Manager: Kelvin Ng (018) 2928861 | Sales Support Executive: Parimala Devi (012) 2424122 | Subscription: Ext 122/101 Account Manager: Aznul Faizal Ahmad (019) 3953552 Email: [email protected] EVENTS & MARKETING Sales Director: Jasmine Cheng (017) 2717722 | Senior Manager: Terry Chong (012) 7086833 | Manager: Sharon Lee (016) 3301571 | Sales Manager: Simon Lim (016) 2383715 | Focus Malaysia is published by: Account Manager: Matthew Foo (012) 4803141 Milan Integrasi Sdn Bhd (1251956-W) CIRCULATION & PRODUCTION Unit 6.13, Level 6, 1Tech Park, Manager: Kanna Matthew (012) 5070750 | Executive: Silas Emmanuel (014) 640 4733 Jalan Tanjung Bandar Utama, 47800 Petaling Jaya, 23 Selangor Darul Ehsan 32 FM_KIBAd_25Nov2019_Final OL.pdf 1 26/11/2019 4:08:02 PM

Nov 30-Dec 6, 2019 | FocusM | 3

CMY

K 4 mainstream FocusM | Nov 30-Dec 6, 2019 Focus Malaysia goes online daily and prints monthly

A selection of past covers by P Gunasegaram Weekly Editor-in-Chief COMPLIMENTARY COPY – NOT FOR SALE PP 13917/10/2012 (030948) www.focusmalaysia.my PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my MAY 31-JUNE 6, 2014 Weekly issue Inside Defining the ‘true north’ | Idris Jala on how ETP has spurred the country’s economic growth ... page 16 mainstream mainstream 001 WEEKLY WEEKLY ISSUE Slow and steady for Asean airline plan Ho Wah Genting must do more Pestech hitches ride on SEA power demand ISSUE Lifeline for Perwaja | Set to return to profitability after securing iron ore mining concession ... page 26 insurer P&O ... page 16 scuttled ... page 14 Shareholders demand loss-making company come Electric-power technology company to expand products 078 People & Life 038 up with a turnaround plan ... page 18 and services under three-year blueprint ... page 13 16pages of mainstream A picture December 8-14, 2012 Dear Reader, of grace BUSINESS ANALYSED Aug 24-30, 2013 and grit Wah Seong CHermaine gears up for Poo shows gumption and Inside: renewable backbone in scaling the heights of the 16 pages of energy business glamour world YTL ripe for Focus Learning ... pages 8-9 PENINSULAR MALAYSIA RM4.50 | SABAH & SARAWAK RM5.50 O&G services company pp 13917/10/2012 (030948) | Peninsular Malaysia rm4.50 | Sabah & Sarawak rm5.50 MALAYSIA supplement pg26 re-rating ... page 18 earmarks renewable energy THIS will be the last copy (Issue 362, Nov 30-Dec 6, as its next growth catalyst ... page 08 Shares of KPJ 2019) of the weekly print (and digital) edition - after attractive? mainstream Healthcare group’s mainstream price correction See brothers follows adverse court decision unite to fight off seven years in operation. It’s because Focus Malaysia is Corn man Cash in or ... page 24 Can-One’s Yeoh cash out? 2014 looks Once divided, Nelson EPF has to murky for brothers now join heads decide whether Top Glove forces to prevent to subscribe to sale of Kian Joo Can Kinsteel Bhd MD, Perwaja Holdings Bhd chairman, Hubline Bhd CEO, Unisem (M) Bhd chairman and group MD, west MAS rights issue Rubber glove maker JCY Inter- Factory Tan Sri Pheng Yin Huah Tan Sri Abu Sahid Mohamed Dennis Ling Li Kuan John Chia Sin Tet catching up in the digital race. We will transform into has hands full with ... page 12 national powers ... page 16 Labour nitrile competition shortage at Wynton Private Equity Group .... page 22 ahead of HDD home forces peers Nelson’s to Indonesia an online business news portal focusing on news, fea- and Africa to farm Hard disk drive sweet corn Eversendai component maker ... page 38 undervalued rebounds strongly while Notion VTec despite gains flounders Masterskill Education Group Bhd ex-CEO, Scomi Group Bhd group CEO, Melewar Industries Group Bhd executive Globaltec Formation Bhd group exec Jho Low Datuk Seri Edmund Santhara Shah Hakim Zain chairman, Tunku Yaacob Abdullah chairman, Datuk Goh Tian Chuan Syed Share price ... page 22 tures and opinion and a monthly print publication. Halim’s struggles despite Mokhtar’s strong financials Pullout Focus Malaysia ‘demolition and track record May 31-June 6, 2014 derby’ ... page 20 Three old buildings in KL to cash cow be torn down FocusView high flier The work to officially launch the news portal on Jan Silterra at a ... page 31  Leave MAS The Tan Sri Halim SAAD, management How a 31-year old has crossroads reinvention alone Trading Khazanah Nasional corporate high-flyer of linked up with top politicians, on fashion Tanco Holdings Bhd group MD, Mulpha International Bhd executive  Blacklist PTPTN No sequence andrew Tan of andrews may be unwilling to Datuk Tan Jing Nam chairman, Lee Sheng Huang Models is head honcho of guanxi of the much-anticipated royal families and Hollywood KL Fashion Week, a five- the 90s, has surfaced as loan defaulters day platform connecting stomach more capital designers with retail 1 has already started. There will be “wet-testing” for opportunities to success ... pages 04&05 ... page 05 celebrities ... pages 10-12 outflow for wafer fab art of the frontrunner to take over the Malaysian Genomics unit nurturing Resource Centre’s ... page 20 Wheat or benchmark 16A royal cruisepages Angling for adventure National Feedlot Corp cattle- Since being cast in popular 1970s business ties, Munirah Abdul extreme angler adventurer Jeremy Wade television series The Love Boat, shares his experiences fishing for monsters Princess Cruises has made dreams and being the star of his own television come true for more than 1.7 million programme ... pages 08&09 people from around the world Chaff annually ... pages 12&13 the Chinese way, has farming project. He is also linked Hamid has made Overpaid uploads of articles and features during the whole evolved to keep up  SapuraKencana some unorthodox decisions in her Focusview with technology to three other mega ventures Bob Chua to snap up Labuan WEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018 WEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018 journey to becoming  Justice should not be delayed ... page 37 on Bob Shipyard stake? the co-founder of a  No reason to omit directors’ Chua  Mercedes to Bursa-listed genetic profiles ... page 05 pages 08 & 09 Brand goes introduce its research company directors global electric cars ... pages 04&05 WheatorChaff month of December prior to the launch on Jan 1. ... page 50 Despite incurring big losses, listed companies continue to make high  Tok Bali port  ABB caught up in dam brouhaha woos Petronas for  Sawit Kinabalu uses cloned tissue payouts to their directors. Is this fair to minority shareholders? anchor tenant Low Taek Jho, 50 ... pages 10-12 (The Focus List) CEO, Jynwel Capital Ltd to ramp up production ... page 06 Simultaneously, work will continue for the produc- ... page 06 HeveaBoard’s HeveaBoard’s differentiation differentiation strategy to strategy to sustain profits P. 8 sustain profits P. 8 tion of a solid monthly print publication to be simply FOR RESALE SUBSCRIBER COPY/NOT FOR RESALE SUBSCRIBER COPY/NOT Prudent Prudent Deleum focuses Deleum focuses called Focus Malaysia Monthly, which will also be avail- on core biz on core biz

O&G services player O&G services player able in a digital format. It will hit the stands in the last cautiously optimistic cautiously optimistic on sector’s recovery. on sector’s recovery. P.13&14 P.13&14 Comintel’s Comintel’s FocusLife tough task to FocusLife tough task to week of December/first week of January for the first turn around turn around Banking on bids for Banking on bids for ‘We have jobs worth RM600 mil ‘We have jobs worth RM600 mil after disposing of only after disposing of only issue of the new year, 2020. profitable unit. P.14 profitable unit. P.14 weathered Sporty weathered Sporty PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my JUNE 7-13, 2014 mainStarstream mainstream Star mainstream mainstream mainstream mainstream Cashless boost Cashless boost WEEKLY Tune ProtectP. 5 with QR code P. 5 withPantech QR code Axiata’s Sowing a new Sunway community Investment scams continue to thrive ISSUE BGMC: the storm’ looking at payment the storm’ paymenteyes new edotco We are doing this to meet the demands of a rapidly Each precinct in Sunway Iskandar development will be Unscrupulous parties still exploiting legal loopholes for a 079 Property Long-term Property a self-sustaining integrated city ... pages 46-47 quick buck ... pages 14-15 Sapura Energy Bhd group re-pricing Sapura Energy Bhd group markets mulls fund CEO Tan Sri Shahril Enter outlook for CEO Tan Sri Shahril Enter somethe dragon of its the dragon after US raising via mainstream Shamsuddin feels the construction Shamsuddin feels the worst is over. The group products sector is worst is over. The group blow private changing market place. These are all too apparent for has strengthened P.11-12 good has strengthened P.6 equity PBA nears its presence in five P.16&18 its presence in five P.16&18 P.12 continents despite the P.6 continents despite the nod for P.IV&V P.IV&V turmoil in the oil and PP 13917/10/2012 (030948) turmoil in the oil and 00297 PP 19339/05/2018 (034908) gas sector. P.10-12 gas sector. P.10-12 www.focusmalaysia.my those in the media industry - the reader wants infor- tariff hike www.focusmalaysia.my 9 772289 234001 Proposed hike Peninsular Malaysia RM3.50 JUNE 9-15, 2018 WEEKLY ISSUE 285 Peninsular Malaysia RM3.50 SEPT 1-7, 2018 WEEKLY ISSUE 297 expected to boost the Penang water property mainstream mainstream income+ property mainstream mainstream income+ mation at the tips of his fingers literally - through the company’s topline UEM gears for Between Business and Investing in Will integrated Making quality Sustainability Tips when ... pages 20-21 better results from populism and politics do not luxury handbags living be the way healthcare reporting boosts buying your Melbourne P.20-21 sustainability P.13 mix P.14 P.29 forward? P.20-21 accessible to all P.16 business P.14 first car P.30-31 smartphone, the notebook and the desktop. With a few mainstream GDEX to gain from Alibaba- SingPost deal Tossed by clicks, he wants to know all there is to know as quickly Courier company may have to scale up operations and enhance technology in anticipation of big allegations as possible. Speed is of the essence. And mostly for free, volumes from the tie-up ... page 08 There have been alleged anomalies and irregularities in technical Will Hong specifications of vessels in the run-up to Icon Offshore Bhd’s listing Leong Cap be “They exercise. While this raises questions as to what really happened, I might add. delisted? the company has denied the accusations ... pages 10-12 Getting down With company failing to comply with public shareholding spread, have to pay time is fast running To do that, we have to be agile and quick - the only out ... pages 16 to business Datuk Seri Dr Wan Azizah finds her TAHPS new job “exhilarating”. The Deputy the price” way out is to increase our digital presence and respond Differing by-laws emerging from impede speedy Prime Minister talks about fighting obscurity Datuk Seri Anwar Ibrahim says those construction Laggard group corruption, reforming GLCs, women Uniformity hard to makes comeback empowerment, 1MDB, media in govt who were involved in excesses rapidly on a platform that is very easily accessed. But achieve as authorities with Puchong didn’t have the honour and integrity seek to protect their property projects freedom and how it is like working turf ... page 18 to resign. P.8-10 ... page 24 with Tun Dr Mahathir Mohamad. P.8-10 that does not mean we will abandon print totally. Chang’s perfect finishWEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018 WEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018 WEEKLY ISSUE 279 PP 13917/10/2012 (030948) Peninsular Malaysia RM4.50 | Sabah & Sarawak RM5.50 www.focusmalaysia.my APRIL 7-13, 2018 Darren Chang leads a team who We are a weekly print newspaper now and maintain turn vehicles into showroom worthy models with their a modest online presence. What we intend to do is to signature touch ... pages 29, 32-33 HeveaBoard’s HeveaBoard’s HeveaBoard’s differentiation differentiation differentiation strategy to strategy to strategy to sustain profits P. 8 sustain profits P. 8 sustain profits P. 8 SUBSCRIBER COPY/NOT FOR RESALE SUBSCRIBER COPY/NOT substantially increase our online presence but at the FOR RESALE SUBSCRIBER COPY/NOT THE BULLS ARE BACK. FOR RESALE SUBSCRIBER COPY/NOT Prudent Prudent Prudent Deleum focuses Deleum focuses Deleum focuses same time reduce the frequency of print to a monthly. on core biz on core biz RECHARGED.on core biz REGISTER NOW bullcharge.bursamarketplace.com O&G services player O&G services player O&G services player By doing that we hope to have the best of both cautiously optimistic cautiously optimistic 27 SEPTEMBER 2018 BursaBullCharge cautiously optimistic on sector’s recovery. on sector’s recovery. on sector’s recovery. P.13&14 P.13&14 P.13&14 Comintel’s Comintel’s Comintel’s FocusLife tough task to FocusLife tough task to FocusLife tough task to worlds. We will bring breaking news, make rigorous turn around turn around turn around Banking on bids for Banking on bids for Banking on bids for ‘We have jobs worth RM600 mil ‘We have jobs worth RM600 mil ‘We have jobs worth RM600 mil after disposing of only after disposing of only after disposing of only analyses, and come up with brave, unvarnished com- profitable unit. P.14 profitable unit. P.14 profitable unit. P.14 weathered Sporty weathered Sporty Leading weathered Sporty focuslist Don't Star Cashless boost Star Cashless boost Malaysian CigaretteStar Cashless boost Smaller oil GLCs P. 5 with QR code miss out P. 5 with QR code YouTuber P. 5 with QR code payment payment players payment palm planters the storm’ deliver the storm’ Phei Yong the storm’ ments on the business scene in Malaysia and the world, Property on the Property crimpedProperty favoured Sapura Energy Bhd group mixed Sapura Energy Bhd group shares the Sapura Energy Bhd group CEO Tan Sri Shahril Enter latest CEO Tan Sri Shahril Enter secrets to CEO Tan Sri Shahril byEnter illicit if the crop theset dragon of the dragon the dragon Shamsuddin feels the issue of Shamsuddin feels the his social Shamsuddin feels the market prices rise worst is over. The group results worst is over. The group media worst is over. The group especially where it relates to us, 24/7. has strengthened Pursuit has strengthened success. has strengthened P.5 P.14 P.11-13 its presence in five P.16&18 its presence in five P.16&18 Read about its presence in five P.16&18 continents despite the continents despite the it in PURSUIT continents despite the P.IV&V P.IV&V P.IV&V turmoil in the oil and 00327 PP 19339/05/2018 (034908) turmoil in the oil and 00358 PP 19339/05/2018 (034908) turmoil in the oil and 00359 PP 19339/05/2018 (034908) gas sector. P.10-12 www.focusmalaysia.my gas sector. P.10-12 www.focusmalaysia.my gas sector. P.10-12 www.focusmalaysia.my For those who want depth, clarity, more analysis 9 772289 234001 9 772289 234001 9 772289 234001 Under Billion Companies + Investment Peninsular Malaysia RM3.50 MARCH 30-APRIL 5, 2019 WEEKLY ISSUE 327 Peninsular Malaysia RM3.50 NOV 2-8, 2019 WEEKLY ISSUE 358 Peninsular Malaysia RM3.50 NOV 9-15, 2019 WEEKLY ISSUE 359 and more substantial material, we will have a print property mainstream mainstream income+ IHH doubles Syarikat Takaful’s Special draws Let experts Anthony A regional Growth & Smart cities: Bitcoin still the Paramount: Cycle & Carriage MyKris eyeing Rethinking down on high degree of have little decide on Loke reveals hub for taxes: Tough A real leading crypto Leveraging on looks to several a leap into ACE credit card India ops financial impact on PLUS takeover inside info? energy-efficient balancing estate play? despite huge monthly which will also be distributed digitally in an education P.20-21 strategies to grow P.5 market P.14 usage P.28-29 P.6 discipline P.14 NFOs P.15 bids P.26 P.29 vehicles? P.11&12 act P.17 P.18&19 drop in prices P.33 easily accessed format. The online material will be free EXCLUSIVE INTERVIEW to all but we will eventually ask for donation “subscrip- Can Penang tions” and donations from those who don’t mind con- "I'm in pull it off? Does Dr M A state government selling reclaimed land tributing towards cost recovery and a decent salary for a hurry" to finance infra projects under a RM46 bil transport master plan is raising concern over really control The world’s oldest prime minister, the huge financial risks, the ‘excess capacity’ our staff. Tun Dr Mahathir Mohamad, is facing and the environmental impact. P.8-10 a time crunch as he races to fix the Corporate country’s ills before handing the reins Our aim is to give free access to good business news to his successor. This includes Malaysia? GLC reforms, high cost of living and bringing The prime minister wields enormous influence and views to all who want them but to recoup the costs over businesses held by government-linked Jho Low to justice. companies. Some quarters are calling for P.8-10 Penang Forum effective checks on the PM’s power that could spokesperson Khoo incurred through donations and advertisements as well Salma Nasution see the unequal distribution of wealth. P.8-10 as organising events and fora which will be of interest USA HOME TM SAME DAY AS THE U.S.

to readers. The latest, just for you That’s the way we will go in future. We will start ABS | Executive Education HURRY! Last few seats left! • ACROSS 2 COUNTRIES, OVER 2 WEEKS ARROW S8 GLOBAL BANKING LEADERS THE FLASH S6 • LEARN FROM RENOWNED EXPERTS

THE WALKING DEAD S10 • BECOME AN ALUMNI NEW AMSTERDAM S2 Your favourite hit shows are back with brand new seasons. PROGRAMME THE GOOD DOCTOR S3 25 november - 06 december 2019 kuala lumpur & london Visit www.asianbankingschool.com to nd out more small. We will grow our digital presence and look for AHS: 1984 S9 Catch them all on Astro – same day as the U.S. www.astro.com.my AHS: © 2019 – 2020 Twentieth Century Fox Film Corporation. All rights reserved. THE GOOD DOCTOR: © Sony Pictures Television Inc. All rights reserved. NEW AMSTERDAM: © 2018 NBCUniversal Media, LLC. THE WALKING DEAD: © 2019 AMC Network Entertainment LLC. All rights reserved. THE FLASH: © and ™ DC Comics, © Warner Bros. Ent. Inc. ARROW: © and ™ DC Comics, © Warner Bros. Ent. Inc. | MEASAT Broadcast Network Systems Sdn. Bhd. (240064-A) new ways to keep print - as long as there is a market for

it. That’s part of our efforts to stay relevant. Project Name: Focus Malaysia Advert While the market place is a very competitive one, Printing: Colour File Size: 26.2cm x 7cm Monthly we are not looking to displace anyone and overtake Actual Size: 26.2 x 7cm others but will be focused - pardon the pun - on bring- Bleed line in Red ing the news, analyses and comments that matter to a developing country, providing insights and solutions NOVEMBER 2018 and building awareness. NOVEMBER 2019

What we hope to bring to you is some value in Under Billion Companies + Investment terms of information - the news, analyses and com- 13 ments - which are independent, impartial, properly researched, written well and even entertainingly and which you will at least in part find enlightening. That would hopefully translate into justification and expansion of our market presence. We thank you, readers, each and every one of you, for continuing to support alternative media. We hope you will find our future endeavours worthy of your continued support, and if so do pass the word around. LeadingLeading MalaysianMalaysian Feel free to give your feedback - bricks and bats or YouTuber Phei Yong bouquets as the case may be or anything in between sharesshares thethe secretssecrets toto AUGUST 2019 DECEMBER 2019 1 his social media NOVEMBER 2019 DECEMBER 2019 1 at [email protected]. That will help us success.success. improve. FocusM FocusM | Nov 30-Dec 6, 2019 mainstream 5

by A journey of seven years, Doreenn Leong

even years! This is how long Focus Malaysia and still going strong has existed. And boy, what a journey it has been for us. It seems Slike just yesterday when I took the leap to re-enter the journal- ism world. I was itching to get back to doing what I love most –

COMPLIMENTARY COPY – NOT FOR SALE writing and unearthing corpo- Inside Weekly issue Defining the ‘true north’ | Idris Jala on how ETP has spurred the country’s economic growth ... page 16 001 Lifeline for Perwaja | Set to return to profitability after securing iron ore mining concession ... page 26 rate scandals and shenanigans as People & Life 16pages of A picture December 8-14, 2012 of grace well as giving first-hand news on and grit

CHermaine Poo shows gumption and what is happening in the busi- backbone in scaling the heights of the glamour world ... pages 8-9 pp 13917/10/2012 (030948) | Peninsular Malaysia rm4.50 | Sabah & Sarawak rm5.50 pg26 ness world. When I got wind of a new

Corn man Cash in or weekly publication looking for cash out? Nelson EPF has to heads decide whether west to subscribe to MAS rights issue writers, I couldn’t pass up the ... page 12 Labour shortage at home forces Nelson’s to Indonesia and Africa to farm chance to give this a go. I recall sweet corn ... page 38

Halim’s Syed meeting with Focus Malaysia’s Mokhtar’s ‘demolition derby’ Three old buildings in KL to cash cow be torn down numero uno, Chong Cheng Hai, The Tan Sri Halim SAAD, ... page 31 reinvention corporate high-flyer of of guanxi the 90s, has surfaced as who was the paper’s first editor- art of the frontrunner to take over the nurturing business ties, National Feedlot Corp cattle- the Chinese way, has farming project. He is also linked evolved to keep up in-chief (EIC). He is not a man of with technology to three other mega ventures Bob Chua ... page 37 on Bob Chua pages 08 & 09 Brand goes global ... page 50 many words and has a dry sense of humour – I could never tell if he was serious or joking. Chong, a veteran in the media industry, has a great eye for detail. We can always rely on him to spot the slightest mistake or error. But Chong had great help from then deputy EICs Toh Lye Huat and Charles Raj. I have worked with Toh during my stint at The Edge Financial Daily. He has a nose for Chong (centre), Toh (left) and Charles who were the EICs in that order news and guides the writers well. What really intrigued me was the chance to work with Charles Raj, story on corporate high-flyer in Our Focus List articles, pub- who has built a name in the the 90s, Tan Sri Halim Saad, as he lished once a month, were based industry, with his thought-pro- had emerged as the frontrunner on extensive research by our voking articles when he was at to take over the National Feedlot research team on various topics. Malaysian Business magazine. Corp cattle farming project. One of the most awaited Focus The three “musketeers” as Jho Low is now the most List articles was on overpaid they were fondly known, man- wanted man in Malaysia for his directors as we listed the direc- aged to put the paper together 1MDB involvement. And we were tors who were highly paid despite for launch in December 2012. It among the first to reveal Jho the company making losses. was certainly not an easy task. Low’s links with top politicians, And who doesn’t love a corpo- Trying to convince experienced royal families and Hollywood rate shenanigan? One of the writers, sub-editors, graphic celebrities. much-talked about articles was designers, photographers to leave their cushy jobs to join a start-up Chong, holding a copy of the 200th issue of Focus Malaysia, with some newspaper company of the pioneer staff was not a walk in the park. Among the top on Icon Offshore Bhd. In my arti- who were retained were unsure two questions of cle, I raised alleged anomalies and of the future of the paper under potential candidates irregularities in technical specifi- the new direction. But Charles, were how deep is the cations of vessels in the run-up to who took the helm as the new owner’s pocket and its mega listing exercise. EIC in 2018, instilled much confi- what is Focus There were many more arti- dence in us. Under his leader- Malaysia’s unique sell- cles which garnered much atten- ship, we continued to make an ing proposition. As it is, tion. Our efforts paid off as read- impact in the industry. Charles the incumbent had ers started to see us as essential was also instrumental in Focus established a strong reading. Malaysia securing an exclusive following in the indus- In just a matter of four years interview with Prime Minister try and it seemed like or so, we managed to overtake the Tun Dr Mahathir Mohamad. an insurmountable task incumbents and became the No. 1 Charles decided to leave due to take them on. business weekly in terms of circu- to personal reasons and the only The answers? The lation with 44,720 print and digital pioneers left are executive editor owner believed there is copies combined. Amie Ong and me. room for another weekly Despite enjoying success This time, Focus Malaysia is publication. Our differ- within a short time frame, it was going for another change. We are entiation – in-depth insufficient to sustain our opera- moving with the times by going analysis of the news, tions. In 2018, the workforce was online and printing monthly to focusing mainly on local cut to a third of the original staff increase our digital footprint companies, hence the strength. Along with this move, while reducing but maintaining a name of the paper. the paper turned digital, making it significant print presence. He also gave us five available on a mobile app. Although going online is years to be profitable. As Understandable - it is impera- tough given the existing players the team started to shape tive for the owner to do whatever in the market, we believe as long up in Focus Malaysia, we is necessary to try to keep Focus as we continue to be bold and were all raring to make Malaysia afloat. This was the unafraid to report the truth, our presence felt. lowest point during my tenure there should be a market for I must say, we did a with the paper. It was not easy what we do. We have a smaller fine job producing the first seeing my colleagues losing their but still dedicated team of people issue of the weekly on Dec jobs. which is prepared to take the 8, 2012, with the cover A screenshot of the new Focus Malaysia website At that time, several of those challenge. FocusM

6 newsbreaks FocusM | Nov 30-Dec 6, 2019 Khazanah to set up Eco World to cut staff? THE Eco World group is considering retrenching staff in a move to cut costs, according to sources. Eco World Development Group Bhd (ECWD) and sister company Eco equities trading desk World International Bhd (ECWI) are mulling a mutual separation scheme (MSS) after going through a financially challenging phase. ECWD is highly geared with 0.75x net gearing as of June 30, 2019 2011, he served in Sime Darby Bhd and UDA Holdings while ECWI is struggling with cash flow problems after seeing its cash, by Emmanuel Bhd. bank balances and deposits drop 55% to RM436.96 mil in the financial Samarathisa Khazanah was not available for immediate comment. year ended Oct 31, 2018 from RM992.39 mil last year. The implementation of the equities trading desk ECW did not respond to FocusM’s queries on the possible rightsizing comes at a time when Khazanah registered higher of both companies. SOVEREIGN wealth fund Khazanah Nasional Bhd is impairments and lower dividend income last year. The The property group has been making headlines recently for being the establishing an equities trading desk as part of a fund posted a loss of RM6.27 bil in 2018 with its realis- subject of a potential merger with UEM Sunrise Bhd. While ECW has measure to deliver higher dividend income, say able asset value falling 21.6% to RM91 bil as of Dec 31, been silent on the matter, UEM Sunrise has denied knowledge of any sources close to the matter. 2018, from RM116 bil a year ago. merger talks. It is believed that Khazanah officials have met UEM board It is believed that Datuk Hisham Hamdan will be in Economic Affairs Minister Datuk Seri Azmin Ali, in a members informally to gather feedback on the matter. FocusM charge of the unit but details are scant as to logistics Nov 19 parliamentary reply, said Khazanah sold stakes and operations. slightly more than RM5 bil in the first 16 months under According to the Khazanah website, Hisham is cur- Pakatan Harapan. Khazanah is estimating a pre-tax rently the fund’s executive director, head of public mar- profit of at least RM5 bil this year. That would be the kets and head of research. Prior to joining Khazanah in highest amount in eight years. FocusM

BNM kickstarts DFI merger talks

BANK Negara Malaysia (BNM) has held a meeting with DFIs together with the Ministry of Finance and the central four development finance institutions (DFIs) as part of the bank would be formed to ensure a “smooth and effective central bank’s efforts to consolidate public lenders, say consolidation exercise.” industry sources. According to the federal budget, the four DFIs are to It is believed the first meeting took place sometime in merge through a “two-phase restructuring plan” to form a November while the outcome of the meeting is not known. “new financial institution.” It is understood that the first The four DFIs are: Bank Pembangunan Malaysia Bhd phase involves BPMB and Danajamin while the second (BPMB), Danajamin Nasional, Small Medium Enterprise phase involves SME Bank and Exim. Development Bank Malaysia Bhd (SME Bank) and Export- BNM noted that the rationale behind the merger was Import Bank of Malaysia (Exim). to “leverage on the complementaries of business and to BNM, in a previous reply to FocusM, said a transforma- further unlock synergistic value propositions of entities.” tion committee comprising representatives from the four FocusM The commercial elements of an EcoWorld development Nov 30-Dec 6, 2019 | FocusM | 7 8 lead FocusM | Nov 30-Dec 6, 2019

But Leong’s relationship is further substantiated by the fact that he was a shareholder of Syed Mokhtar a key player Tradewinds Plantations Bhd. The Tradewinds brand has been synonymous with the Syed Mokhtar clan. The company is owned by in ECW-UEMS merger? Perspective Lane and counts Syed Mokhtar’s son Syed Danial Syed Mokhtar among its directors. Sigma Seleksi, on the other • Through a web of linkages, the tycoon ECWD and ECWI. Housing Programme (PR1MA) in hand, has smaller stakes in both emerges as the largest shareholder of ECWD. Mahathir’s involvement here Taman Ikan Emas, Cheras. EcoWorlds. But one of its share- comes by way of his chairmanship That said, Syed Mokhtar’s rela- holders, Azhar Mohd Awal, is the He would not only benefit from an entity with a of Khazanah Nasional Bhd. The tionship in the ECW group is chief financial officer of PNMB, larger landbank but also the possibility of sovereign wealth fund owns UEM markedly different. To be sure, which is wholly owned by Syed injecting some of his land assets into the Group Bhd which in turn controls charting Syed Mokhtar’s presence Mokhtar. UEM Sunrise with a 76.1% stake. in both ECWs, or in any company merged company Sources familiar with the for that matter, is a byzantine affair MGO in the making? matter say Syed Mokhtar and Liew as the tycoon hides behind layers PNMB has been labelled a bastion • Syed Mokhtar also has a track record of might have been pushing for the of proxies and shell companies. for many of Syed Mokhtar’s lieu- purchasing Khazanah assets deal. “That is part of business. And, In this case, the first place to tenants. Case in point, the yes, the Syed Mokhtar factor might begin is unpacking private compa- appointment of Mohamad be the ‘catalyst’ for the merger.” nies Sinarmas Harta Sdn Bhd and Abdullah as director of media giant entrepreneur. He owned 402ha but But one corporate insider is Sigma Seleksi Sdn Bhd. Sinarmas Media Prima Bhd, which is con- sold me only 281.4ha and kept the not surprised at these develop- and Sigma Seleksi own 32.94% and trolled by Syed Mokhtar. Mohamad by rest,” he said. ments. “If true, then this is normal. 3.28% in ECWD and 3.28% and is the managing director of PNMB Emmanuel He would go on to add that the You should remember that Liew 0.28% in ECWI respectively. and was chairman of TMR Media Samarathisa right partnerships were crucial and Syed Mokhtar’s relationship Sinarmas is ECWD’s largest share- Sdn Bhd - the publisher of The because “in today’s world, you goes back a long way, even during holder and is owned by Syabas Malaysian Reserve. hree years ago, Tan Sri can’t only think of yourself… Liew’s career with SP Setia. Liew, Tropikal Sdn Bhd which in turn is What is Syed Mokhtar’s end- Liew Kee Sin was a jubi- Thank goodness. We have good Syed Mokhtar and (Tan Sri) Abdul held by ECWD deputy chairman game with both EcoWorlds or the lant man. After getting partners for all our projects.” Rashid Manaf. They were part of Datuk Leong Kok Wah (99.99%) and merger with UEMS is unknown. out of a corporate tussle Tun Mahathir’s circle,” she tells Fisool Musa (one nominal share). But a source familiar with the involving property giant The makings of FocusM. At this stage, the link Sinarmas tycoon’s business dealings says it is TSP Setia Bhd, he immediately a mega-merger Rashid was chairman of SP and Sigma Seleksi have with Syed common for him to flirt with trig- found his footing and made a mer- Naturally such a prominent part- Setia (1997-2012) when Liew was Mokhtar is that both companies gering a mandatory general offer curial comeback through a pair of nership will be the talk of the local CEO of the company. Naturally, the share the same business addresses (MGO). property ventures: EcoWorld scuttlebutt. What’s more, Syed former has been earmarked as an with companies directly held by “That is why Sinarmas, despite Development Group Bhd (ECWD) Mokhtar and Liew control more ally and trusted business associate the tycoon such as private vehicles having 32.94% in EcoWorld, has not and its sister EcoWorld than 50% of mothership ECWD. of the latter - he owns 85% of Eco Restu Jernih Sdn Bhd and pushed the MGO button. Of International Bhd (ECWI). (See chart.) World Development Sdn Bhd Perspective Lane (M) Sdn Bhd. course, Leong is there as majority Such was the brisk growth of Now, punters have been specu- which owns 7.24% and 0.92% in Next is Leong’s relationship owner of Sinarmas and that is part the EcoWorld group of companies lating for yonks the links between ECWD and ECWI, respectively. with Syed Mokhtar. The former is of the plan, just like what he is that Liew was confident of fielding Syed Mokhtar’s and Liew’s busi- known as a confidant of both Syed doing with Media Prima.” questions from the local press. ness dealings, especially with A byzantine connection Mokhtar and Liew. Industry To issue an MGO, a share- That was what he did on Jan 23, ECWD and ECWI. But such chatter But Liew’s tenure at SP Setia was sources say Leong is akin to the gel holder has to breach the threshold 2016. Among the earliest questions dialled up a notch as the duo actually one of the earliest between the two and he is believed of 33% or be in a position to control posed to Liew was how he recently emerged as spearheading instances of his relationship with to hold a majority shareholding in the majority of the board of direc- obtained a plot of land for his a purported merger between ECW Syed Mokhtar. For example, SP Syabas Tropikal on behalf of Syed tors. Syed Mokhtar, through his maiden development. group of companies and UEM Setia purchased 360ha in Johor in Mokhtar. vehicle Aurora Mulia Sdn Bhd, Without hesitation, the prop- Sunrise Bhd (UEMS). 1999 from Syed Mokhtar’s private “I believe this was the arrange- owns 31.9% of Media Prima. erty developer name-dropped one The talk is that both ECWD and vehicle Kelana Ventures Sdn Bhd ment when Liew wanted to debut But being the largest share- of the most important figures in ECWI will be merged with UEMS. for RM11.06 mil. with EcoWorld. Note that Leong and holder of ECWD, albeit indirectly, Corporate Malaysia: Tan Sri Syed The latter will take the lead in the SP Setia also entered into a (Tan Sri Abdul) Rashid (Manaf) puts him in an advantageous posi- Mokhtar Albukhary. merger and will have a larger stake 50:50 partnership with Syed played an important role in securing tion. If these assumptions hold Liew was quoted in a local but with Liew and his partners Mokhtar-controlled Tradewinds to the maiden plot of land from Syed water, Syed Mokhtar’s interests newspaper as saying: “When I having management control. Syed build cheap housing under the Mokhtar,” says a source familiar will put him in the driver’s seat came out of SP Setia, I was given Mokhtar is allegedly influencing now defunct 1Malaysia People’s with the initial dealings of ECWD. with a 35.79% stake, hence the con- an opportunity to buy land from such talk with an aim to complete clusion that he is spearheading the him. He offered me two parcels of the merger due to his close asso- UEMS-ECW merger. Some say he land in Johor - parked under DRB- ciation with Prime Minister Tun Dr could not only benefit from an Hicom Bhd and Tradewinds Corp Mahathir Mohamad as well as Liew entity that has a larger landbank Bhd. and the main shareholders of but also the possibility of injecting “He sold me huge parcels of some of his land assets into the land next to Nusajaya and Tebrau merged company. in Johor. But he is a very smart Endless possibilities It is estimated that if a UEMS-ECW merger happens, a mammoth entity will be born with a sizeable landbank of 7,284ha and branding, second only to Sime Darby

UEM Sunrise’s Puteri Harbour is a prestigious waterfront development in Iskandar Puteri, located along the southern coast of Johor FocusM | Nov 30-Dec 6, 2019 lead 9

Property Bhd which owns a 2011, Permodalan Nasional Bhd developable landbank of more than (PNB) offered to take over SP Setia 8,093ha. Based on all three compa- but Liew and his board rejected nies’ realised net asset value, the offer. However, Liew surfaced UEMS stands to be the majority as a joint offeror with PNB for the Syed Mokhtar’s shareholder with roughly 52%. takeover. Others posit a possible sell- The exercise ended in 2012 down by Khazanah when the with PNB becoming a major share- merged company stabilises to take holder. Liew was also set for an EcoWorld Connection its stake below 50% and realise exit in 2015. But he raised eyebrows some cash, which seems to be its after purportedly bankrolling his avowed aim now given a slew of son’s portion amounting to RM124 asset disposals of over RM5 bil mil of a reverse takeover by ECW recently. of then-Focal Aims Holdings Bhd. It is known that UEMS is part He did this while still holding office of Khazanah’s commercial assets in SP Setia. and is believed to be among the Things went further south clutch of companies that are up when Liew tendered his resigna- for sale. If the Bumiputera agenda, tion in January 2014 citing retire- a policy favouring ethnic Malays ment wishes, only for the then SP for the sale of government assets, Setia chairman Tun Zaki Azmi to is factored in, then Syed Mokhtar clear the air that Liew would arrives as a potential winner. remain chairman of the Battersea Firstly, due to a lack of Power Station redevelopment pro- Syed Mokhtar Bumiputera tycoons, what more ject as well as managing director of Albukhary one with clout and political con- the Qinzhou industrial project in Son nections. China - two positions he held Owns Secondly, Syed Mokhtar has during his time as SP Setia head 100% had a track record of purchasing honcho. Khazanah assets such as national The only difference was that he carmaker Proton Holdings Bhd remained in both jobs while com- and national postal service Pos mandeering ECW as a director, Restu Jernih Sdn Bhd Malaysia Bhd. despite denying any links to the Owns % Government officials familiar group. This was no mere storm in 100 Syed Danial Syed Mokhtar Shah with the matter say while Syed a teacup. It raised serious issues of Director Mokhtar and Liew have made their corporate controls in Malaysia. request for the merger known to Searching for dividends Mahathir, there could be possibil- Owns 100% Tradewinds Former ity of inaction on the part of Some fear that this merger with Perspective Plantation Bhd shareholder Khazanah. UEMS will be a SP Setia 2.0. Lane (M) Sdn Bhd

“The only thing credible about Indeed, some have said the Owns this deal, imaginary or otherwise, merged company will help ease the 100% is that it has not been tabled to the ECW group’s finances. Both ECWs Khazanah board. While the PM as well as UEMS certainly need Owns Leong Kok Wah 99.99% (Deputy Chairman EcoWorld Dev) wields significant influence as some tailwinds. The former has Sutera Bakti Same Business chairman, he doesn’t write the had problems with cash flow by Sdn Bhd Address * Fisool Musa board papers to discuss it. It is the way of ECWI, which saw its cash, Owns % Khazanah management team that bank balances and deposits falling 100 drafts the papers. to RM436.96 mil in the financial Owns One nominal “Liew and Syed Mokhtar have year ended Oct 31, 2018 from Percetakan Nasional share every right to push the deal as they RM992.39 mil in the previous year. Malaysia Bhd see fit, but nothing moves without ECWD is highly geared with 0.75x Syabas Tropikal Sdn Bhd being discussed at the Khazanah net gearing as of June 30, 2019. Chief Financial board first,” says an official. ECWI is also expected to conduct a Oﬃcer Heading the Khazanah manage- mandatory separation scheme in a 50% Owns ment team is managing director move to cut costs (read Newsbreak Azhar Mohd Awal 100% Datuk Shahril Ridza Ridzuan. on page 6). Zahari Mohamad But one analyst also points out Owns Sinarmas Harta Sdn Bhd % Pushback that UEMS’ recovery has been 50% Sigma Seleksi Sdn Bhd 15

It is understood that some in slow. The group has been delever- % % Owns 0.28 Owns 3.28 Eco World % Khazanah’s management team are aging but it has yet to provide Owns 0.92 International Bhd not for the deal. But despite some “attractive” dividends. “That is an resistance, Khazanah officials had important factor because met with UEMS board members Khazanah wants dividends. To do informally to talk about the that, they look to Liew who still has merger. The outcome of those ses- a reputation for being a property sions is not known. developer ace.” Owns Owns Dissidents of the merger raise Indeed Liew and Shahril have 10.27% 1.83% the fact that the union could be worked together in the past when more beneficial to ECW, and hence Shahril was CEO of the Employees Wife Son Syed Mokhtar and Liew. Also Provident Fund through various Liew Kee Sin Liew Tian Xiong UEMS does not need ECW’s exper- property tie-ups. “This yielded Owns Owns Eco World Development tise for a turnaround, the numbers positive results for EPF,” says the How Teng Teng % 50% 27 and demands (particularly man- analyst. “I feel this is more of a Holdings Sdn Bhd Eco World Capital agement control) do not make deciding factor of the merger, the Jernih Padu Sdn Bhd (International) Sdn Bhd sense, and the lack of choice in Liew-Shahril dynamic, then the Owns contemplating other proper devel- Syed Mokhtar one. Syed Mokhtar is 85% opers to merge with UEM. “Being just one of the cogs in this Abdul Rashid Manaf limited to only EcoWorld raises machine,” he adds. Owns Owns Owns 10.09% 100% 7.67% questions. Why wasn’t UEM given Another analyst agrees that Owns Eco World % Owns any leeway?” notes one such pro- while the merger will be a union of 2.85 Development % Owns 32.94 tester. unequals, Liew is still perceived to % Group Bhd 5.09 % Liew had a bad exit from SP have the know-how of running a Owns 7.24 Setia. He joined the company in property company. “We are still 1996 and dedicated 20 years of his speculating. But UEMS needs a life to transforming the company proper managerial team. This is Ownership Relationship Syed Mokhtar link into one of the country’s largest something up Liew’s alley.” listed property firms. Liew was Whichever way this pans out, NOTES: also pivotal in helping Malaysia many of those FocusM spoke to 1. Syed Mokhtar Albukhary and Liew Kee Sin control Eco World. Chart shows Syed Mokhtar’s interests control 35.79% secure the Battersea Power Station believe that the merger will of the mothership Eco World Development Group Bhd. Liew Kee Sin’s interests, including son and wife, come up to 22.85% project in the UK. happen. But one thing is certain: 2. * Business Address: No 110, Jalan Maarof, Bangsar Baru, 59000 KL But those accomplishments some of the warhorses of old still were overshadowed by conflicts retain significant shine under the SOURCES: COMPILED FROM BLOOMBERG, SSM, ANNUAL REPORTS leading to his exit from SP Setia. In “new” Malaysian sun. FocusM 10 mainstream FocusM | Nov 30-Dec 6, 2019 Raising revenue through the anti-money laundering law

• IRB has created the ful activity. perception that it Even if you have sold the property, you cannot escape. only goes for the Where the offence is proved small man in striving against the accused but the to increase the property has been disposed of, government’s tax “diminished in value or cannot be traced, the court shall order revenue the accused to pay as a penalty a sum which is equivalent to, in the • It should hunt those opinion of the court, the value of the property, and any such pen- who flaunt wealth alty shall be recoverable as a civil that they cannot debt due to the Government of explain away Malaysia and shall not be subject to any period of limitation prescribed by any written law.” • IRB should work No time limit, in other words. with investigative All these powers to bring the authorities to nab powerful and wealthy to book and nobody is doing a damn money launderers thing about this. Instead, the poor small man or woman is made to pay 5,200% ere’s something for Former prime minister Datuk Seri Najib Razak’s wife Datin Seri Rosmah Mansor is among members of his in interest per year on tax he has Finance Minister family facing money laundering charges already paid! Lim Guan Eng to consider very seri- Obvious cases stand out ously in terms of was not declared. mentalities of an offence. If you thought, for any reason, raisingH revenues given the very And then, if it is apparently The person who commits a that there is only small money ostentatious, and even crude, A Question illegal income, bring in the big money laundering offence shall here, think again. Consider this display of wealth of many in of Business guns via Amla which allows the on conviction be liable to impris- case reported by Bernama in society who may not be paying finance minister to appoint a onment for a term not exceeding August this year: the requisite amount of tax. “competent authority” to investi- 15 years and, hear this, shall also “KUALA LUMPUR (Bernama): It’s been a bone of contention gate the wrongdoing. be liable to a fine of not less than The mother of a former minister, with salaried workers and small- five times the sum or value of the the late Tan Sri Jamaluddin time self-employed people that Wide-ranging law proceeds of an unlawful activity Mohd Jarjis, has failed to reach a the Inland Revenue Board or IRB Under Amla, it is an offence to: or instrumentalities of an offence settlement through mediation for notoriously targets the small • engage, directly or indirectly, at the time the offence was com- her suit against her two grand- man/woman while those who are by in a transaction that involves mitted or RM5 mil, whichever is children over their failure to much richer and have plenty of P Gunasegaram proceeds of an unlawful the higher. include three company shares assets get away with, not murder, activity or instrumentalities To my mind, if the IRB and worth RM1.3 bil in the list of her but not even paying taxes in of an offence; the finance ministry can work son’s estate.” some cases. • acquire, receive, possess, dis- hand-in-hand with the Three company shares worth For instance, taxpayers who Nasional assets amongst others, guise, transfer, convert, Malaysian Anti-Corruption RM1.3 bil - and that’s not all of have been regularly paying taxes the IRB has not tapped into a exchange, carry, dispose of or Commission (MACC), there are the inheritance assets that we under the pay-as-you-earn very simple way of collecting tax use proceeds of an unlawful billions and billions of ringgit out are talking about. It’s a hell of a scheme are sometimes fined - investigate those who have activity or instrumentalities there which the government can lot of money to be in the hands of more than a couple of thousand assets they can’t account for, be of an offence; recover. a career Umno politician and ringgit for merely filing the tax they cars, houses or expensive • remove from or bring into Why, it may even dwarf the minister who never had a large returns late, even by a day. paintings. Malaysia, proceeds of an net funds lost via 1MDB. business to talk about. And this is when your tax unlawful activity or instru- Not just that; Amla allows for Remember, if all of these are obligation may be of the order of Obvious targets mentalities of an offence; and the forfeiture of a property or ill-gotten gains under the law, RM14,000 for the full year. There are registers of car and • conceal, disguise or impede asset upon prosecution for an then it is laundered money and If you are charged RM2,000 house ownership which can be the establishment of the true offence. the penalty is a fine of not less for paying a RM14,000 obligation easily checked by name and if nature, origin, location, The courts can make an than five times the illegal pro- a day late that’s an interest rate they don’t declare the kind of movement, disposition, title order for forfeiture of any prop- ceeds. of 14.3% a day or 5,200% a year - income that can explain the of, rights with respect to, or erty relating to the commission The estate may be liable for 520 times the 10% a year rate assets, well, its most of the time ownership of, proceeds of an of such offence and are bought at least RM6.5 bil! This amount which is usually the late payment an open-and-shut case. IRB unlawful activity or instru- with the proceeds of an unlaw- can be recovered through a civil charge. already has the power to do that. process. But till today, that system still Ministers/former ministers I don’t see why the finance operates as an easy means of with dozens of cars in very ministry and the MACC don’t use garnering quick income for the expensive houses with similarly these powerful laws at their dis- government from the unsuspect- pricey underground garages are posal to recover monies but ing small man who may have an example of an easy target. instead continue to mope about been derelict only in terms of And on top of that, you can the previous government run- late filing, although he has long even use the powerful Anti- ning up a large debt. since made the payment. Money Laundering, Anti- Why, you can even take It comes as a shock later Terrorism Financing and action against them now because when IRB, which is under the Proceeds of Unlawful Activities many of them embezzled money finance ministry, sends you a Act 2001 (Amla). and are living in a style far in letter for the payment of that First, the IRB moves in and excess of their incomes. amount and casually lists it as questions them about their And there are many more in income tax arrears when it is not assets. other sectors of the economy. - it is a penalty charge, only 520 If they can’t provide valid I can’t see why the finance times the usual one! reasons, tax them on the implicit ministry is not taking such How do I know? It happened income and put a penalty on that action. Can you? FocusM to me - and I had a valid reason. - I would like to see them charge It is still puzzling that as the the 5,200% a year like they did P Gunasegaram is editor-in-chief government hunts high and low me. The Sabah Water Department’s former director and his deputy are of Focus Malaysia. He says there is a for government revenue, forcing That is, if that income is from awaiting trial for money laundering after RM114 mil was seized from way if only some people will open the sale of valuable Khazanah legal activities and that income their homes and cars as well as jewellery and land titles worth RM30 mil their eyes to solutions Nov 30-Dec 6, 2019 | FocusM | 11 BRANDED CONTENT

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BLOOMBERG • Apex court ruled 78% of EOT applications in 2018,” that the Housing he says. PPC International Sdn Bhd Controller cannot executive director Datuk give EOTs to Thiruselvam Arumugam says an developers to EOT can technically be granted if complete their there is no contract or SPA signed. projects “If there are no sales, then there is no impact to anyone and the developer should be able to delay its project in order to re- strategise its marketing policies or strategies in order to secure buyers,” he tells FocusM. In the first place, marketabil- ity studies should have been done by Ranjit Singh and Sharina Ahmad before the commencement of the project, but since it was not completed on time, an EOT can be he recent ruling by used to re-strategise, he adds. Malaysia’s apex court However, he says it will be a that the Housing worrying issue if there are sales Controller cannot give and buyers locked in. property developers “The government should not Tan extension of time (EOT) to grant any EOT because it can complete their projects is a posi- burden the purchasers. Any tive development for homebuy- excuses given should have been ers. anticipated before the start of the An EOT is a delay that could The Federal Court’s ruling on EOT is seen as a positive development for homebuyers project. not be reasonably foreseen at the “Moreover, their cost of pur- time of contract signing. The chase will increase since they granting of an EOT relieves the an EOT to the project’s developer, Ministry of Urban Wellbeing, have to incur additional interest developer from liability of dam- BHL Construction Sdn Bhd. Housing and Local Government to be paid to their financiers as ages, such as liquidated damages, The case was brought by the must give homebuyers the right well as their loan tenure. If they from the original date of contract homebuyers against the then to be heard before developers are don’t own a house then they will completion for the period of the Ministry of Urban Wellbeing, given an EOT to complete a pro- be paying rent for a longer period claim. Housing and Local Government ject. together with the interest.” National Housing Buyers and BHL Construction in July But the bench ruled and dis- He advises buyers to be cau- Association (HBA) secretary-gen- 2016. agreed with the Kuala Lumpur tious of the completion date eral Datuk Chang Kim Loong tells The Kondominium Sri Istana High Court’s decision, saying that stated in SPA. “The buyers must FocusM that the Federal Court’s development located on Jalan Regulation 11(3) of the Housing always check with the developer decision is a major victory for Kuchai Lama was slated for com- Development (Control and on the completion date and if house buyers. pletion in April 2016, which was Licensing) Regulations 1989 was EOT is granted before the sales. “It’s a major victory; for a long 36 months from the date of the not ultra vires or against the Then it is the decision of the time, house buyers were being sale and purchase agreement Housing Development (Control buyers to proceed with the sales, ‘bullied’ by errant and irresponsi- (SPA). and Licensing) Act 1966. provided that the buyers are ble housing developers. We are However, the developer sub- In delivering the recent notified about the completion indeed glad that the Federal mitted an application to the Federal Court decision, Chief date.” Court has made a wise and fair Housing Controller on Nov 17, Justice Tan Sri Tengku Maimun Chang says the Federal Court’s decision for house buyers’ pro- 2015 for an EOT for the delivery of Tuan Mat said that granting decision is a major victory for Impact of construction tection in the spirit of the vacant possession (VP) on the extensions or modifications to house buyers delay Housing Development Act,” he grounds that there were com- the prescribed terms and condi- Recently, KPKT in a written reply says. plaints by nearby residents. There tions would deny house buyers to a query in the Dewan Rakyat Chang adds that the lawyers were also stop work orders the right to claim for liquidated After KPKT’s announcement cited that the reasons for EOT who had represented HBA had issued by the local authorities damages. was made, Chang has hit out at applications include local council fought the case on a pro bono and investigation conducted on “These modifications and the the current government for con- restrictions on permitted hours, basis for four years. the piling contractor. This led to a granting of EOTs to the developer tinuing what he calls a “Barisan abiding by infrastructure Real Estate Housing delay in delivering the VP based do not appear to protect the pur- Nasional-era” practice of giving requirements such as the inte- Developers’ Association (Rehda) on the completion period of 36 chasers, which militates the property developers EOTs with- grated water supply scheme, president Datuk Soam Heng months as stipulated in the SPA. intention of Parliament,” she was out justified and valid reasons. high-rise design of the building Choon told FocusM on Nov 28 In April 2016, the purchasers quoted as saying in allowing the He says under the statutory and additional earthworks. that Rehda would not comment received a letter from the devel- appeal of the 104 buyers. SPA, housing developers are sup- Other reasons mentioned on the matter until it has studied oper stating that they were not “As can be seen from the long posed to complete a unit and were the need to construct podi- the written judgement and has entitled to be compensated in line of authorities, it is the inter- hand over the keys to a buyer ums and basements, and consid- met the housing and local gov- liquidated ascertained damages ests of the purchasers that prevail within 24 month (for landed erations over the location of a ernment (KPKT) minister on Nov as there was an EOT of 12 months over that of the developer.” property) to 36 months (for project, including restrictions 29. that had already been granted. She adds that EOTs would stratified property) of the signing due to proximity to schools. “We will withhold our com- The buyers then filed a judi- only determine payment of dam- of the SPA, failing which they will Although the law did not ments on the issue at this junc- cial review application in July ages. However, the court did not have to pay 10% per annum com- specify the “special circum- ture as the written judgement has 2016, challenging Regulation 11(3) mention whether the minister pensation in liquidated ascer- stances”, Chang says poor plan- not been analysed yet, and our of the Housing Development could grant an EOT to developers tained damages to the buyer. ning and project management meeting with the minister has not (Control and Licensing) as the point was not raised Chang states that the delivery should not be seen as a special taken place as the judgment has Regulations 1989 as well as the during the proceedings. date can be extended without the circumstance but as “incompe- far-reaching consequences,” says EOT issued on Nov 17, 2015. need to pay compensation if the tence”. Soam. Regulation 11(3) confers Is EOT being abused? developer can get an EOT from “If there is an event of force powers on the controller to waive On Nov 6, KPKT announced that the Housing Controller or the majeure, earthquake or civil How it started and modify the terms and condi- 75.4% of EOT applications by KPKT minister due to “special commotion, then yes, those are HBA, representing Kondominium tions of the contract of sale developers from January to July circumstances”. reasonable, but if a developer Sri Istana’s 104 homebuyers, had between purchasers and the 2019 had been approved. In 2018, “We are disappointed that the does not do its homework prop- presented three appeals at the developer. the number was 78.15%, while ministry has approved 75% of erly, then house buyers should Federal Court against the On March 30, 2018, the Court 67.8% of EOT applications were EOT applications between not be denied their rights to Housing Controller for granting of Appeal ruled that the then allowed in 2017. January and July this year and compensation,” he says. FocusM Nov 30-Dec 6, 2019 | FocusM | 13 14 mainstream FocusM | Nov 30-Dec 6, 2019 A re-tendering for the RM2.5 bil immigration system?

• S5 Systems is one of the he government is believed to be At that time, SKIN was to replace the governments and enterprises. It has a global re-tendering the RM2.5 bil Malaysian Immigration System, which was clientele base spanning across many seg- shortlisted bidders and Integrated Immigration System awarded to HeiTech Padu. However, the new ments, including identity and documents could even be the dark (IIS) due to some changes in the government under Pakatan Harapan termi- security, law enforcement, intelligence horse in this bid project’s specification. The nated the project due to high cost and monitoring, customs, immigration and requestT for proposal had closed on Aug 16 “weaknesses” in the SKIN concession. border control. and saw some 30 bidders for the project. Prestariang decided to make a legal So, who is behind S5 Systems? Based on It is learnt that there are four frontrun- claim of RM732.86 mil from the government filings on Companies Commission of ners for the project: Datasonic Group Bhd, as a result of the termination. Malaysia, NSA Technology Sdn Bhd is the HeiTech Padu Bhd, Opcom Holdings Bhd While much is learnt about the three holding company of S5 Systems. Meanwhile, by and S5 Systems Sdn Bhd. listed bidders for the IIS contract, it is NSA Technology is held by NSA Technology Doreenn Leong The ISS is supposed to replace the RM3.5 intriguing that S5 Systems is among the (L) Inc, which is believed to be controlled by bil Sistem Kawalan Imigresen Nasional shortlisted bidders and could even be the a Malaysian businessman who is also (SKIN) project, which was awarded to educa- dark horse in this bid. involved in the e-government solutions and tion software licence purveyor Prestariang S5 Systems is a global integrated security services. Bhd via direct negotiation in 2017. solutions provider, delivering solutions to There are talks that S5 Systems could seek a back-door listing via ConnectCounty Holdings Bhd, an interconnect and cable solutions provider. The directors of S5 Systems are Syed Mohammad Hafiz Syed Razlan, Adi Wira Abd Razak and Aaron Lok Khy-Min. The company posted a net profit of RM152.84 mil in the financial year ended June 30, 2014 (FY14), on the back of RM234.92 mil in revenue. However, its earnings and revenue plunged to RM7.23 mil and RM55.3 mil respectively in the subsequent financial year. On a positive note, its financials started to improve in the following years. S5 Systems posted a higher net profit of RM108 mil in FY18 from RM64.5 mil the previous year, on the back of increased revenue of RM147.75 mil versus RM96.1 mil previously.

Key projects with Malaysian Immigration Among S5 Systems’ key projects with the Malaysian Immigration Department are the i-Kad, National Enforcement and Registration System (NERS), and the Immigration Security Clearance (ISC) projects. The company is the key technical provider for these projects using its NexCode system. These projects contributed more than 93% of its FY16/FY17 revenues. The i-Kad is a government-issued identity card for registered foreign workers, expatriates and their dependants in Malaysia. The i-Kad is a straightforward contract and is not a concession. S5 Systems’ subsidiary S5 Biotech Sdn Bhd is the contracting party with Percetakan Nasional Malaysia Bhd, the national printing agency that is responsible for supplying the card. The i-Kad was gazetted by the government on Feb 21, 2018. The NERS project was established by the government to enable a nationwide registration and monitoring for all foreigners into and from Malaysia. The contract tenure is for 12 years from 2011 to 2023. The ISC project functions as the first and mandatory step of screening for prospective foreign workers, as the application processes take place in the respective home countries. The purpose of the ISC is to help the government combat unwanted or black- listed foreign workers, and the detention or deportation of foreign workers after arriv- ing in the country. In 2017, S5 Systems was appointed by HeiTech Padu to integrate the foreign workers’ medical examination (FOMEMA) system with the Immigration Department’s system, and the provision of biometric verification capabilities at all clinics nationwide. Only foreign workers with their finger- prints recorded under the biometric system can go through health screenings before getting employment. FocusM FocusM | Nov 30-Dec 6, 2019 mainstream 15 Intensifying competition, price pressures weigh on F&N

• Upstream raser & Neave Holdings tainable farm model and are cur- production may Bhd (F&N) will likely be rently studying various options. boosted by its move to Hence, more details, including the give boost to the go upstream but there return on investment, will be group facing rising are concerns that the shared in due course. The pro- competition and Frising competition as well as posed acquisition will be funded price pressures higher input cost will continue to via internally generated funds dampen the company. and/or external borrowings. Based on a Bloomberg poll, “The exact funding mix will be • Funding for the there are two Holds, one Buy and decided by the management of dairy farming one Sell recommendations. The F&N at a later stage after taking average target price for the last 12 into consideration F&N’s gearing project will not be months is RM34.55. level, interest costs as well as an issue for the MIDF Research analyst Nabil internal cash requirements for cash-rich beverage Fikri Zainoodin, who gave a F&N and its subsidiaries’ business group Neutral rating, notes that intensi- operations,” explains Lim. fying competition and competitive F&N has been plagued by rising competition and price pressures since Although there are challenges price pressures especially in the the implementation of the sugar tax from July 1 this year to the dairy farming project, cash canned milk and ready-to-drink will not be an issue for the group. segment in Malaysia could be a “As per its latest filing, the factor for not turning bullish on for approval from the relevant involvement in upstream milk group is still on a strong net cash by the counter. authorities but does not foresee insourcing. position. Hence, we do not expect Chee Jo-Ey He tells FocusM that the any major delays to the conclusion that its gearing ratio will be group’s earnings will continue to of the sale and purchase agree- Funding not an issue severely impacted by this latest grow, driven by the better prospect ment, which is expected to be F&N plans to allocate RM650 mil venture,” Nabil says. for its Thai operations, but con- completed in the second quarter to develop the new land in Perlis, “The group will not have any cerns on its near-term outlook for of 2020. The land transaction is which will include the clearing issue with funding. The company the domestic operations still subject to approvals from the rele- and purchasing costs of Phase 1 of has a strong cash balance of remain. vant federal and state authorities. the project. RM569.72 mil as at Sept 30 and the The beverage segment in The proposed project will Nabil explains that a venture borrowing is minimal,” Lye says. Malaysia has been plagued by reduce the company’s exposure to into dairy farming comes with He believes that the group’s busi- rising competition and price pres- foreign exchange fluctuations, challenges and is not an easy feat, ness direction for vertical integra- Fraser & Neave sures since the implementation of currency outflow from the country given the failures of similar pro- tion would lead to meaningful the sugar tax from July 1 this year. and uncertainties in importing jects undertaken by other parties results in the medium term. Holdings Bhd However, TA Securities fresh milk and feed, while achiev- in the past. “With careful plan- In Phase 1 of the project, F&N CONSUMER PRODUCTS & SERVICES Holdings Bhd analyst Jeff Lye Zhen ing control over the quality of milk ning, we estimate that the dairy will import 4,000 dairy cows with Xiong is positive on the stock with from “grass to glass”. farming project could take at least a potential output of 40 million KEY BOARD MEMBERS AND a Buy recommendation on F&N. F&N CEO Lim Yew Hoe says five years before it can give a litres of fresh milk per annum. MANAGEMENT “I’m looking forward to the com- the company aims to be a major meaningful profit contribution to Subsequent phases will take place Tengku Syed Badarudin pany’s shift of focus on upstream player in the health and wellness the group,” he notes. upon stabilisation of Phase 1. In Jamalullail (chairman) production. The project is still at segment, with fresh milk as its Currently, F&N is evaluating the longer term, Ladang Chuping Lim Yew Hoe (CEO) its early stages. The company has new pillar of growth. various investment options to will be capable of hosting 20,000 proposed to buy the land and the “While the project is seen as develop the upstream fresh milk dairy cows to produce 200 million MAJOR SHAREHOLDERS deal has not gotten through yet but more of an upstream insourcing operations. It expects to have its litres of fresh milk yearly, ena- Fraser & Neave Ltd the direction they are headed to is exercise, it will also allow the com- first production of fresh milk bling the group to have the capac- 55.5% right,” he explains. pany to deepen and widen its within 24 months of vacant pos- ity to export fresh milk from Employees Provident Fund The research house maintains equity in the liquid milk business, session. being a net importer of fresh Buy on F&N with an unchanged growing the organic and inorganic “We are still looking at a sus- milk. FocusM 10.1% target price of RM42 per share. aspects of our business,” he says. MARKET CAP ( Nov 27) Fruitful Thai operations The integrated dairy RM12.71b Lye’s optimism is also attributed to centre will create a new SALE BY TENDER (682491-M) Share price (Nov 27) the growing strength of the Thai income force. “We’ve TH (V(1)0036) baht and F&N’s operations in seen other similar com- CLOSING DATE: 5.00PM, 19 DECEMBER 2019 RM34.66 Thailand have been fruitful. He panies doing really well EXCLUSIVE MARKETING AGENT 52-week high (April 5) points out that the October- after starting an 1. 906 Subdivided Plots of Individual Title Bukit

N Beruntung

RM36.96 December quarter also tends to be upstream production,” o

with Residential & Commercial Land @ h 52-week low (Dec 18, 2018) -

the company’s strongest, thanks to TA Securities’ Lye notes. LEASEHOLD S Serendah, Selangor o u recovery in sales and preparation F&N can draw upon the t h RM29.20 Ex INDICATIVE PRICE: RM 165,000,000/- Sg. Buaya Toll Blazapr for the Chinese New Year. Vinamilk example. The es sw a FINANCIAL RESULTS He forecasts that the group will Vietnam-based dairy Bandar Baru y Title Net LA: 202.9 Ac Sungai Buaya Alamanda (4Q ended Sept 30, 2019) prioritise its commercial execution company has seen leaps Parklands Approximately 500 metres away from Revenue in preparation for an early 2020 and bounds in its SUBJECT PROPERTY Serendah RM975.09m Chinese New Year festive sale, growth following its the Sungai Buaya Toll Plaza accelerate product innovations, Adjoining to Bandar Baru Sungai Saujana M Aruna Net proﬁt Rawang and enhance operational efficien- Buaya Township RM68.03m cies alongside expanding its global Bandar Ready for Development Country reach through new market expan- Homes Rawang One-year price chart sion and e-commerce penetration. RM With regard to the volatile 2. Lot 267, Serting Ulu, Jempol, Negeri Sembilan 37 input cost, Lye is hopeful that the INDICATIVE PRICE: RM 31,700,000/- group’s proactive management of 2-Storey Office Building with a Factory 36 LEASEHOLD its procurement and optimal pric- on a parcel of 57.25 acres Land 35 ing could mitigate any sharp and Total BU Area : 310,582 sqft 34 unfavourable movements in raw Established Industrial Area material prices. 33 Proximity to Kansai Paint, Power Bricks, Nov 27 F&N recently announced plans Rich Mix Concrete, Beyond Power RM34.66 32 to widen its equity in the liquid milk business by venturing into FIRST PACIFIC VALUERS PROPERTY CONSULTANTS SDN BHD 31 Scan here integrated dairy farming and milk Lim says the company Level 3A, Wisma Rapid, No. 32-36, Jalan 30/70A, for the Desa Sri Hartamas, 50480 Kuala Lumpur, Malaysia 30 production with the purchase of aims to be a major brochure! Tel: +6 (03) 6203 1188 (HL) 27/11/18 27/11/19 4,454ha of land in Chuping, Perlis. player in the health and SOURCE: BLOOMBERG Sr P.L. Lee 012-211 9813 / Nathan Wee (REN33953) 010-217 0335 The company is still waiting wellness segment 16 mainstream FocusM | Nov 30-Dec 6, 2019 Sime Darby: New year sees continued portfolio rationalisation

Westports • 1QFY20 results Sime Darby Bhd Holdings Bhd above expectations, say analysts PRODUCTS & SERVICES TRANSPORT SUPPORT & SERVICES

KEY BOARD MEMBERS AND KEY BOARD MEMBERS AND • With Hong Kong in MANAGEMENT MANAGEMENT the throes of an Datuk Abdul Rahman Ahmad Tan Sri G. Gnanalingam (chairman) (chairman) unrest, will Datuk Jeffri Salim Davidson Datuk Ruben Emir Gnanalingam continued expansion (group chief executive officer) (group managing director) be on the cards? Tan Sri Samsudin Osman (director) MAJOR SHAREHOLDERS Pembinaan Redzai Sdn Bhd MAJOR SHAREHOLDERS 42.4% Skim Amanah Saham Bumiputera South Port Investment Holdings Jeffri: The group’s industrial 42.5% Ltd by Despite the protests in Hong Kong, Sime Darby’s motor division sales in division excelled in China and the Employees Provident Fund 23.5% Xavier Kong that region ‘held up well,‘ says Jeffri Australasia region 9.47% Kumpulan Wang Persaraan 7.07% MARKET CAP (Nov 26) ime Darby Bhd reported Finally, there is the logistics Malaysia, as well as the 3,561.23ha market with 56 years presence in RM14.5b better than expected segment, which provided a of land in the Malaysia Vision the country. It has an affluent Share price on (Nov 26) MARKET CAP (Nov 26) results in the first quar- weaker contribution year-on- Valley in Negeri Sembilan owned society with a large market share RM4.24 ter of its 2020 financial year (yoy), as its RM6 mil profit by the group. of the luxury segment,” says RM15.71b 52-week high (Nov 13) year ended Sept 30, 2019 before interest and tax came in Interestingly, the four ports Jeffri, adding that the group’s Share price on (Nov 26) RM4.54 Swith a net profit of RM246 mil, an 46% lower than in 1QFY19. still sit pretty in Sime Darby’s businesses there make up 5.9% of RM2.31 52-week low (Dec 24, 2018) increase of 9.3% quarter-on- Affin Hwang Research analyst books. This raises the question as Sime Darby’s revenue. 52-week high (Dec 3, 2018) quarter (qoq). Brian Yeoh notes that the drop in to whether the group is still look- “We need to hunker down RM3.45

This was attributed to a contribution was due to the ing to divest the ports or hold on and wait for things to settle down. RM2.44 52-week low (Aug 21) strong contribution from the 1QFY20 loss before interest and to them given their encouraging We have to ensure that our staff FINANCIAL RESULTS group’s industrial division, with tax from joint ventures of RM6 performance. are safe,” he notes, adding that RM2.09 (3Q ended Sept 30, 2019) analysts calling the improved mil. Earlier, Sime Darby met a the group employs about 1,200 Revenue growth “remarkable.’’ “Excluding the disposed stumbling block in the form of a staff in Hong Kong. FINANCIAL RESULTS RM460.4m “We have reported a good set Weifang Sime Darby Water nationwide port consolidation AmInvestment Bank analyst (1Q ended Sept 30, 2019) Net profit of results, with our industrial Management Co Ltd and joint initiative being put in place by the Jeremie Yap notes that he had Revenue RM159.2m division recording wins in most venture losses, the ports (parked Chinese government. This has led expected sales by the motor divi- RM9.48b markets, riding on the mining under the logistics division) to the group putting its port sion to be sluggish due to the Net profit and construction waves to enjoy recorded a core profit before divestment plans on hold. Hong Kong protests. RM246m One-year price chart increased sales in China and the interest and tax (PBIT) of RM15 “The ongoing nationwide port “Nevertheless, the region’s RM Australasia region. mil, an increase of 88% yoy, from consolidation exercise has sales volume held up well at 4.6 “Our order book for the higher bulk cargo throughput at changed the dynamics of the 10,800 units, an increase of 8% One-year price chart industrial division is solid at Weifang Port. This amounted to a ports business in China and cre- yoy,” he adds. RM 4.4 RM2.5 bil as at Sept 30, 2019. Our 4% increase yoy to 7.3 mil metric ated significant downside risks to 2.5 motor division too saw significant tonnes,” he adds. obtaining a strong valuation,” Trade tensions Nov 26 4.2 2.45 RM2.31 improvements, particularly in the says Jeffri in the group’s 2019 In the recently-ended quarter, 2.4 4 China market, this quarter due to Portfolio rationalisation annual report. China was identified as a key 2.35 Nov 26 3.8 higher margins from vehicle Sime Darby is looking towards “In view of this, we made a driver for Sime Darby’s beyond- 2.3 RM4.24 sales,” says Sime Darby’s group divesting its non-core businesses strategic decision to delay the expectations results, as the trade 2.25 CEO Datuk Jeffri Salim Davidson. in a portfolio rationalisation divestment of our ports until the superpower contributed strongly 3.6 2.2 Sime Darby stands as a strong exercise over five years. What this port consolidation exercise is to the group’s industrial and auto 2.15 3.4 industrial and auto player, with means is that the industry and completed, at which time divest- divisions. 26/11/18 26/11/19 luxury auto brands such as BMW, auto arms will continue to be its ment is expected to be more TA Securities analyst Angeline 2.1 2.05 SOURCE: BLOOMBERG Jaguar and Porsche under its primary focus while it looks to beneficial to the group,” he adds. Chin notes that, for the auto seg- 26/11/18 26/11/19 umbrella. It also has long-stand- grow its fledgling healthcare seg- Referring to a previous ment, the “higher contribution ing partnerships with Caterpillar ment. report, Yeoh from Affin Hwang was mainly driven by improving SOURCE: BLOOMBERG Inc (CAT) and other brands, Its non-core assets include notes that the floor price for the margins and higher revenue in which see Sime Darby distribut- the logistics arm, which operates ports is estimated at RM2.3 bil, China, which has helped to offset ing industrial vehicles and a sea port and three river ports in which is equivalent to the total of lower sales in Malaysia as a result machinery in 18 countries. the Shandong region of China. Its Sime Darby Logistics’ invested of the absence of the zero-rated Other than that, Sime Darby other businesses under the logis- capital in FY18. Goods and Services Tax (GST).” RM2.23 and a fair value of RM2.64 features a healthcare segment, tics division - a water treatment Chin adds that “the strong to adjust for the strong 1QFY20 made up of six hospitals and a plant, along with its management Hong Kong blues performance (from the industrial results. TA Securities also day surgery centre, which had a firm - have already been sold. Sime Darby has large business segment) was underpinned by upgraded the group to a hold call, flat contribution of RM15 mil to Other non-core assets interests in Hong Kong, with all higher equipment deliveries to along with a target price of the group’s 1QFY20 results. include its 30% stake in Tesco of its core competencies having a the mining and construction sec- RM2.43. foothold there. Not only does tors in Australia and China.” Moving forward, analysts lean Sime Darby Industrial deal in However, she cautions that towards concern over the group’s CAT vehicles there, Hong Kong the ongoing US-China trade ten- long-term prospects, with Yap (together with China) is also a sion could impact the group’s from AmInvest hoping that “the market for the group’s luxury car earnings moving forward. group will continue its efforts to brands under Sime Darby “Despite growing demand monetise other non-core assets, Motors. from Australasia, Malaysia and such as Lockton Insurance, the Even the healthcare segment, Southeast Asia, management sees 30% stake in Tesco Malaysia and which the group is looking to a more cautious investment its 11.6% stake in Eastern & grow, has a day surgery centre in approach due to the trade ten- Oriental Bhd.” Hong Kong, which was opened in sion, which is also expected to Affin Hwang’s Yeoh shares the November 2018. weigh on consumer spending,” sentiment, noting that “while we The group’s CEO has also she adds. raise our FY20 earnings per share gone on record at the group’s forecast by 12% on the strong recent annual general meeting, Valuation 1QFY20 results, Sime Darby’s stating that Sime Darby will not Affin Hwang and AmInvest are long-term prospects look shaky Sime Darby has a sea port and three river ports in China and the outlook be pulling out of Hong Kong. maintaining hold calls on Sime in view of its susceptibility to an for them depends on that country’s port consolidation initiative “Hong Kong is a mature Darby, with a target price of economic slowdown.” FocusM Nov 30-Dec 7, 2019 | FocusM | 17 18 mainstream FocusM | Nov 30-Dec 7, 2019 MSPO-certified palm oil may not command a premium price

• The certification is ing factor when it comes to spur- more of an initiative ring adoption of sustainability standards, says RSPO. to provide comfort Palm oil is the world’s high- to international est-yielding oil crop, with an buyers that our palm output five to 10 times more per oil is produced in a hectare than other leading vege- table oils. Combined with histori- sustainable manner cally low prices, relative shelf stability, and reported nutritional benefits, palm oil has natural advantages that position it as a likely long-term staple of the global diet. by Rapidly expanding popula- Ranjit Singh tions and changing consumption patterns, as well as increasing he government’s drive demand from the bioenergy and to ensure 70% of the oleochemical industries, have oil palm produced in resulted in sustained high prices the country obtains for crude palm oil. the Malaysian TSustainable Palm Oil (MSPO) cer- Intense scrutiny tification by February 2020 may Malaysia which is the second- not result in higher prices for the largest producer of palm oil in product. From left: Dass, Kok, Deputy Primary Industries Minister Datuk Seri Shamsul Iskandar and MPOCC CEO Chew the world has come under Ong Chee Ting, plantation Jit Seng at the launch of the Malaysian Sustainable Palm Oil Trace platform on Nov 18 intense scrutiny by the West amid sector analyst at Maybank claims that its palm oil industry Investment Bank, tells FocusM has contributed to massive that buyers of palm oil have come fied,” the analyst tells FocusM. additional expenses such as audit pushing the industry toward a deforestation, destruction of to expect the certification and She adds that buyers in many fees, logistics and environmental sustainable future and it aims to wildlife and ill-treatment of would not attach a premium to it. importing countries were price assessments, says Sime Darby, use 100% RSPO-certified oil by indigenous people. “We should not expect any sensitive and would not pay more the biggest producer in the world 2023. Buyers of palm oil have been premium for Malaysian palm oil for MSPO-certified palm oil. of certified, sustainable palm oil more discerning on their calls certified under MSPO. This ini- Palm oil is increasingly con- (CSPO). Discerning consumers that palm oil must be cultivated tiative is pursued to provide troversial, particularly in Western So who isn’t buying? Still, buyers do face challenges in a sustainable manner which comfort to international buyers countries, as images of deforesta- According to WWF International, procuring the oil “in specific geo- has prompted the government to that Malaysian palm oil is pro- tion and dying orang utan turn demand for CSPO among major graphies due to the lack of prox- get the commodity MSPO certi- duced in a sustainable manner,” popular opinion against the ubiq- consumers India, China, Malaysia imity to available CSPO”, says fied. he says. uitous commodity. But producers and Indonesia remains low. Nestle. “If we have certified 100% of According to Bloomberg in a are hitting back, saying consum- The Bloomberg report also “Consumers today want to our palm oil, we would be the recent report, the world’s biggest ers aren’t willing to put their quoted Nestle SA as saying that know what is in their food, where first country in the world to do growers of palm oil say they’re money where their mouths are. about half the tropical oil it sour- the ingredients come from and it,” Malaysian Palm Oil stepping up efforts to produce To gain certification, it costs ced in 2017 was traceable to the how it is made,” adds Nestle. Certification Council (MPOCC) the commodity more sustainably, producers a minimum of RM8 to plantation, adding that buying Market commitment and chairman Datuk Franki Anthony but consumers are unwilling to RM12 a tonne, and there are other the certified variety is one way of uptake of CSPO will be the defin- Dass tells FocusM. pay more for environment- The MSPO is the national friendly supply. palm oil certification scheme and Production of sustainable is operated by MPOCC as the palm oil has jumped to a record scheme owner. 13.6 million metric tons a year, According to MPOCC, as at about 20% of global output, the end of October, around 3.4 according to the Roundtable on million hectares or almost 60% of Sustainable Palm Oil (RSPO). Tracing sustainability practices planted areas and 328 mills or But only half of that is sold as 73% of total mills have been sustainable oil. In the report, MSPO certified. These include Sime Darby Plantation Bhd, the N an attempt to enhance the sustainability MPOB’s E-Trace System. smallholders with a planted area top planter in the world by acre- features of palm oil, MPOCC recently MSPO Trace was developed by AIREI Sdn of 546,000ha and 1,565 estates age, says sustainable palm oil is Ilaunched an IT platform known as MSPO Bhd, an IT systems developer with expertise in with a total area of 2.8 million ha. more expensive to produce but Trace, a continuous certification monitoring agriculture software solutions. It comprises The government has been hardly anyone is willing to pay a platform which aims at delivering sustainabil- four modules which include certification, aggressively promoting the certi- premium. ity, accountability and traceability throughout traceability, logo usage, and complaints and fication of palm oil among indus- It quoted Simon Lord, chief the oil palm value chain from grower to cus- grievances. try players but has received lim- sustainability officer at Sime tomer. Development of the certification and ited buy-in, especially from Darby, as saying “there is The MPSO certification is awarded for a traceability modules are ready to be imple- smallholders. increasing resentment among period of five years and after the period mented while the second stage of the project growers that the other actors in lapses, the oil palm company has to be recerti- on logo usage and complaints is targeted to Cost of compliance the supply chain are not stepping fied. Minister of Primary Industries Teresa be completed by December. Besides the cost of compliance, up”. Kok recently announced that companies The development of MSPO Trace is aimed there were other obstacles faced According to a plantation which fail to get their oil palm plantation at allaying various accusations against the oil by planters, especially smallhold- analyst at a bank-based broker- MSPO-certified will lose their planting licence palm industry in Malaysia of deforestation, ers, in obtaining certification, age, the reception towards from the Malaysia Palm Oil Board (MPOB). worker exploitation, indigenous peoples’ according to Ong of Maybank MSPO-certified palm oil had MPOCC is targeting 100% traceability rights violation, greenhouse gas emissions, Investment Bank. been encouraging in advanced through MSPO Trace of certified palm oil from biodiversity and habitat loss, and illegal land “Ongoing education of small- economies but the take-up was plantations nationwide by 2025. The trace will conversion. holders who are not aware or lukewarm among many other have digital and real-time statistics which dis- If the MSPO Trace identifies any breach by fully aware of the need for MSPO importing countries. play complete traceability from product to the plantation company of the certification certification, especially European “MSPO-certified palm oil has cultivation equipped with Geo location fea- requirement, its certificate will be revoked. buyers’ requirements in ensuring not really taken off in many tures, seamless data update via cloud connec- MSPO Trace integrates all the activities of palm oil is produced in a sustain- countries with the exception of tivity, protection of data and privacy of users the local palm oil industry using big data man- able manner, is necessary. Hence, advanced economies. Currently, coupled with merging features with the agement and data decision making. smallholders have been slow in less than 50% of the palm oil pro- getting their plantation MSPO duced in Malaysia is MSPO certi- certified,” says Ong. FocusM Nov 30-Dec 7, 2019 | FocusM | 19

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Malaysia's Top Creator of Education Cities & Learning Communities 20 mainstream FocusM | Nov 30-Dec 7, 2019 Will Westports 2 be a game changer for the company?

• Westports 2 will Westports require a capex of Holdings Bhd around RM10 bil, which is earmarked TRANSPORT SUPPORT & SERVICES for between 2020 KEY BOARD MEMBERS AND and 2040 MANAGEMENT Tan Sri G. Gnanalingam (chairman) Datuk Ruben Emir Gnanalingam (group managing director)

by MAJOR SHAREHOLDERS Ranjit Singh Pembinaan Redzai Sdn Bhd 42.4% South Port Investment Holdings he worsening trade Ltd talks between China and the US are 23.5% expected to result in a pullback in global MARKET CAP (Nov 26) trade.T This is where shipping RM14.5b companies and port operators Share price on (Nov 26) are the first few players to suffer. Ruben believes Westports will be able to attract more businesses with larger capacity RM4.24 However, it appears that 52-week high (Nov 13) Westports Holdings Bhd is on RM4.54 the right track with a commend- Growth in volume ‘robust’ volume grew 6% yoy. if volumes continue to grow. 52-week low (Dec 24, 2018) able 11.9% increase in net profit The volume mix between trans- However, UOB Kay Hian However, analysts are not to RM159.24 mil for the third shipment and gateway was 67:33 believes that the yield hike ready to call a buy on the RM3.45 quarter ended Sept 30, 2019 for 9M19. According to Maybank impact during the period was counter just yet despite the FINANCIAL RESULTS (3Q19), against a RM142.32 mil net Investment Bank, the growth in muted. It says stripping out con- much improved numbers. (3Q ended Sept 30, 2019) profit in 3Q18 due to a double- volume for the company was tainer costs, Westports’ net con- Based on a Bloomberg poll, Revenue digit growth in container volume “robust”, driven by transship- tainer yield was unchanged at there are seven “buys”, nine and the implementation of a ment volume which increased RM209 per box from the previ- “holds” and one “sell” recom- RM460.4m container tariff hike that took 17% yoy. ous period. It says the manage- mendations. The only “sell” rec- Net profit effect in March 2019. The group’s This was mainly due to the ment had alluded that besides ommendation was by TA RM159.2m revenue for the quarter also Ocean Alliance moving four of its the lower mix of high yielding Securities. Its analyst Steven Tan grew 10.3% to RM460.43 mil from services from PSA Singapore to gateway at 33%, the flattish net tells FocusM that he had factored RM417.55 mil in the same quarter Westports in April 2019. Ocean yield was due to fewer value-add in the souring US-China trade One-year price chart last year. Alliance is a major alliance of services. talks which would translate in a RM The company derives its international shippers including Previously, it said there was pullback in global trade. 4.6 income from providing con- CMA CGM SA, China COSCO very high demand for storage “Normally, if there is a slow- tainer handling services, con- Shipping Corp Ltd, Orient and reefer container movements down in global trade, shipping 4.4 ventional cargo services and a Overseas Container Line Ltd and but this has moderated in 2019. companies would suffer first, wide range of other port serv- Evergreen Line. Currently, Reefer containers are big fridges followed by port operators,” he 4.2 ices. around 50% of Westports’ busi- used to transport temperature- says. 4 In the nine months just ness is derived from this alli- controlled cargoes such as fruits, Tan’s target price for the Nov 26 ended (9M19), Westports’ net ance. meat, fish, seafood, vegetables, company is RM3.87. Westports’ 3.8 RM4.24 profit climbed 20% to RM465.46 The research firm adds that dairy and non-food products shares closed at RM4.24 on Nov 3.6 mil from RM387.93 mil in the local volume also increased due such as flowers and pharmaceu- 25. The analysts’ consensus price previous corresponding period, to faster exports from the weak ticals. UOB Kay Hian says the for the company is RM4.43. 3.4 while revenue expanded 11.1% to ringgit and the relocation of moderation was due to seasonal- TA Securities says the 3Q19 26/11/18 26/11/19 RM1.33 bil from RM1.2 bil previ- paper mills from China to Port ity and customer efficiency, results in terms of trade lanes SOURCE: BLOOMBERG ously. Klang. During that period, local adding that demand may recover witnessed slower intra-Asia and It handled 8.04 million twenty-foot equivalent units (TEUs) of containers during the period, an increase of 16% from a year ago, contributed by transshipment containers which rose Westports derives its income from providing to 5.39 million TEUs, while gate- container handling services, conventional cargo way volume expanded to 2.65 services and a wide range of other port services million TEUs. Transshipment is the shipment of goods or containers to an intermediate destination, then to another destination, while gateway means handling the import and export of the container business. For vessels calls in 2019, Westports says it has accommo- dated a greater proportion of ultra large container vessel at its berths, especially its newer wharves, as the liner industry deploys bigger container vessels. “We expect volume growth to be in the region of 13% to 15% for 2019 and 3% to 8% for 2020,” the group adds. Utilisation of the port during 9M19 was at 76%. FocusM | Nov 30-Dec 7, 2019 mainstream 21

Westports 2.0 layout Westports: Container volume by trade lane

(3Q19)

FUTURE WESTPORTS EXPANSION Asia- Asia- 2400m Europe B24 B23 B22 B21 B20 B19 Australasia 17% Intra- 8% Asia 2400m Asia- ODD 63% FUTURE TERMINALS FACILITIES ODD ODD ODD ODD ODD America 5% FUTURE FREE TRADE ZONE Asia- (400 acres) Africa Others PKFZ 4% 3%

SOURCE: COMPANY, MAYBANK IB

concession agreement with the “This mix of debt and equity government is finalised. raising is sufficient and will be SOURCE: WESTPORTS & TA SECURITIES Ruben says the proposed structured to not affect the expansion would further existing 75% dividend payout strengthen the company and policy and debt covenants,” says 9M19 transshipment volume surged 20% yoy due to additional Port Klang’s role as the pre-emi- UOB Kay Hian. nent port for the nation’s gate- AllianceDBS Research opines services from Ocean Alliance way trade and also reinforcing that the financial impact of the the terminal as one of the main expansion is difficult to gauge at mn TEUs transshipment hubs in the this juncture as there is still no 3.00 Transshipment Gateways Southeast Asia region for inter- confirmation of terms (including national container shipping alli- concession payments) to be 0.92 2.50 0.90 ances. agreed with the government. 0.85 0.66 0.82

0.66 He adds that the company The expansion will more 0.63 0.61 0.87 0.60 0.61 0.62 0.61

0.77 has completed technical studies than double Westports’ capacity 0.71 0.81 0.77 0.65 0.65 0.65 0.72 2.00 0.62 and the environmental impact to 35 million TEUs from its cur- 0.55 assessment as well as the layout rent 14 million TEUs. The new 1.50 for Westports 2. terminal will be utilising the Westports is one of the two same facilities as the existing 1.85 1.83

1.73 ports in Port Klang, the other terminal but will be under a new 1.71 1.89 1.84 1.85 1.82 1.58

1.00 1.80

1.73 being Northport, which is con- concessionaire. 1.67 1.65 1.48 1.52 1.43 1.51 1.46 1.51 1.54

1.42 trolled by tycoon Tan Sri Syed An economic impact study by 1.47

0.50 1.38 Mokhtar al-Bukhary. PricewaterhouseCoopers indi- UOB Kay Hian says the land cates that Westports’ expansion 0.00 reclamation for the first phase plan is expected to generate an 1Q14 3Q14 1Q15 1Q15 3Q15 1Q16 3Q16 1Q17 1Q18 3Q18 1Q19 3Q19 (CT10-CT13) of Westports 2 is economic output of RM55.3 bil likely to cost RM1 bil over two from 2021 to 2080. years, while each container ter- It also found that the project minal may cost around RM700 could contribute around RM19 SOURCE: TA SECURITIES mil to RM800 mil. It adds that bil to Malaysia’s GDP over the concession talks with the gov- 60-year period, generate over ernment could be finalised by 6,000 jobs on average and act as Asia-Europe volume growth at have a capacity of 35 million facilities from Container 1Q20 to 2Q20. a catalyst for trade growth. 15% and 32% respectively, com- TEUs by then,” Ruben tells Terminal 10 (CT10) to CT17. In view of the large capex “Westports is strategically pared to 24% and 47% in 2Q19. FocusM in an interview. According to Ruben, the requirement for Westports 2, located for expansion, as it has Intra-Asia volume continued to The Tuas container terminal, company had acquired a 154.2ha how will the company finance an excellent track record in dominate with 63% share of when fully developed in 2040, leasehold plot under the sea in the development? operational capability, good con- Westports’ total throughput in will make the island state the Pulau Indah from the Selangor Ruben says the company is nectivity via railway line, road 3Q19, followed by Asia-Europe’s operator of the world’s largest State Development Corp for open for discussion with finan- and sea, and the availability of 17%. Meanwhile, Asia-America container terminal located in a RM116.9 mil. It is looking to buy ciers on the issue. space for expansion to meet growth contracted for three con- single location. another piece of land to enable it “We may go for a mixture of demand quickly,” adds the study. secutive quarters by 27% in 3Q19. On Aug 25, 2017, Westports to build new container terminals debt and equity but would dis- Ruben’s father, Tan Sri G received an approval in-princi- CT10 to CT17. However, the com- count a rights issue,” he adds. Gnanalingam, is the largest Westports 2 to require ple from the government to pany will only purchase the For 9M19, the port operator shareholder in the company with RM10 bil capex expand its container terminal second piece of land once the had a net gearing of 0.33x. an equity interest of 45%. FocusM The global outlook does not appear to be turning positive any time in the near term. However, this does not deter Westports from embarking on its ambitious growth drive. Its planned development dubbed Westports 2 will The way forward for Westports require a capital expenditure (capex) of around RM10 bil, which is earmarked for between HE International Monetary soften to 5.9% in 2020. allocation would see government That is something that has been 2020 and 2040. Fund, in its World BIMB Securities says the efforts to improve the country’s much needed for a long time,” he However, critics are ques- TEconomic Outlook’s July outlook for South Asia is strong, transportation ecosystem and says. tioning whether businesses will update, downgraded the global with growth anticipated at 7% in network. The aim of turning Port Under Budget 2020, the gov- go to Westports if it has a bigger GDP growth from 3.3% to 3.2% 2020 and 7.1% in 2021. This bodes Klang into a regional maritime ernment allocated RM50 mil for capacity especially in light of the in 2019 with a decrease in trade well for the region and implies and logistics centre could have the repair and maintenance of slowing global trade. Westports volume growth from 3.4% to growth in cargo volume for coun- spillover effects to Westports roads leading to Port Klang, while group managing director Datuk 2.5%. tries therein. From this develop- Holdings Bhd. the Transport Ministry will com- Ruben Emir Gnanalingam Accordingly, Alphaliner has ment, ports in Malaysia are Westports group managing mence feasibility studies on the believes the company will be able revised downwards its growth expected to benefit from the director Datuk Ruben Emir Serendah-Port Klang Rail Bypass to attract more businesses with outlook for global container intra-Asia trade lane growth and Gnanalingam is very receptive to for cargo shipments and the larger capacity. throughput to 2.5% in 2019 (from exhibit resilience in the face of the government’s initiatives to Klang Logistics Corridor which “We need to build capacity 3.5%). The global economic the current global economic improve conditions in Port Klang. will be a dedicated privatised and the business will come in. downturn has also led the World slowdown. “Budget 2020 has allocated highway connecting Northport Look at Singapore – its Tuas pro- Bank to project the developing The National Transport Policy funds to improve the roads and and Westports. Both projects are ject will increase its capacity to East Asia Pacific growth to 2019-2030 and Budget 2020’s land connectivity in Port Klang. estimated to cost RM8.3 bil. 65 million TEUs when the project is completed (in 2040). We would 22 mainstream FocusM | Nov 30-Dec 7, 2019 Government should focus on the real issues for the country’s sake

BLOOMBERG • The Malaysian economy is precariously running on only one leg, private consumption, which is being impacted by lower wage growth

• Political leaders should put the country’s and people’s interests ahead of those of their parties while the government and technocrats should focus on addressing long-term issues, not just the “here and now”

• Malaysians now have to think of the possibility of being placed in situations they have never before been forced to confront

• The government should act sternly against those fanning racial and religious hatred while it focuses on restoring confidence, managing the economy, implementing sound and clear policies and addressing the bread The government must strive harder to lift Malaysians out of a low-wage economy even as it focuses on and butter issues creating a united nation

sumer spending could drag down Competition from Asean people’s interests ahead of those racial and religious hatred while the domestic economy. Real pri- rivals of their parties while the govern- it focuses on restoring confi- vate sector wage growth moder- On a positive note, Malaysia is still ment and technocrats should dence, managing the economy, by ated to 3.8% in 3Q19 from 4.2% in enjoying net inflows of direct focus on addressing long-term implementing sound and clear Lee Heng Guie 2Q and 5.2% in 1Q. investment (long-term capital issues, not just the “here and policies and addressing the bread Real wage growth in the investment) which measures the now.” and butter issues. manufacturing sector also paced difference between foreign and We should put aside rampant Policy initiatives must be well he government and slower to 3.2% in 3Q19 from 3.9% outward direct investment. political bickering, conflicts and executed and communicated to Malaysians face a set in 2Q. Cooling wages could In 2016-18, net inflows of infighting. Rather, we should rec- the stakeholders to avoid public of domestic and exter- restrain households’ spending. direct investment registered an ognise and deal with issues arising and investor confusion about nal challenges that Private investment growth average of RM13.8 bil a year, a from external headwinds and their good intentions. arguably needs the remains slack as businesses and sharp turnaround from the aver- domestic structural weaknesses For the country, Malaysia Tgreatest focus and attention of investors wait to see what any age net outflows of RM12.3 bil a that are impacting the domestic needs to have credible economic policy makers since the 2008-09 shakeup in both the international year for six successive years (2010- economy. policies and growth narrative if it global financial crisis. environment and on the domes- 15). For now, we really need to is to continue to move forward. The economy grew by 4.7% in tic front will be like. In Jan-Sept 2019, net direct unite for the country's sake. A Ordinary Malaysians want a the first nine months of this year, Between 2013 and 2018, investment registered net inflows positive political environment is a united nation living in a climate and the government expects con- Malaysia had suffered net out- of RM7.2 bil. condition for future and sustained of mutual tolerance and trust as a tinued economic expansion esti- flows of portfolio investment Approved investment in the economic growth. respected society that is caring, mated 4.8% in 2020 as against averaging RM23.7 bil a year, with manufacturing, services and pri- Political stability is a variable of economically just and equitable, consensus estimates of between 2018 recording the largest net mary sectors increased moder- great importance in building a progressive and prosperous. 4.4% and 4.6%. outflow of RM44.4 bil. ately by 1.9% a year from RM193.1 coherent and continuous path for For businesses and investors, Risks to the forecast are In the first nine months of bil in 2015 to RM204.4 bil in 2018. sustainable development. it is important for the govern- skewed to the downside. External 2019, the net outflows remained In 1H 2019, approved invest- The uncertainty associated ment to consistently foster a headwinds weighing on the substantial at RM34.9 bil. ment increased by an annual rate with an unstable political environ- stable and conducive business global economy are the US-China For 2018-19, a confluence of of 7.6% to RM92.0 bil. ment may undermine confidence, environment for economic trade conflict, renewed financial negatives has caused investors to While FDI inflows averaged reduce investment and hinder the growth and business investment. stress, sharper-than-expected shun domestic equities and RM38.7 bil a year in 2010-18, pace of economic development. Besides the 3Cs - clarity, con- slowdown in major economies bonds: Malaysia’s Asean competitors are A house divided cannot stand. sistency and continuity - busi- and geopolitical risks and ten- • Increasing downside risks to fast catching up to absorb a lion’s If we can manage the differences nesses want a competitive tax sions. the global economy. share of the FDI for the region. under a common goal, they can be regime, an investment-friendly Malaysia’s trade will continue • The unsettling China-US trade Today’s complex environment turned into a dynamic force and business environment and a sup- to be caught in the crossfire of dispute. is characterised by rapid changes, strength to create an inclusive, portive regulatory landscape. the US-China trade tensions, • Slowdown in China’s eco- rising protectionism and competi- dynamic and competitive New Malaysians now have to think which is likely to drag on for a nomic growth. tion, technological disruption in Malaysia. of the possibility of being placed while longer as negotiations are • Brexit uncertainty. the market and workplace as well Political leaders and in situations we have never ongoing on the different phases Domestic-inflicted issues and as the presence of domestic struc- Malaysians must constantly before been forced to confront. of trade deals. concerns weighing on inves- tural weaknesses. remind themselves to look at These include a highly disruptive This means that weak exports tors’ sentiments are: These include low productivity issues and problems facing the global environment; a more will remain a drag on the econ- • Post-2018 general election growth and capital efficiency; high country with an open mind and intense market and capital revo- omy. Exports are estimated to political and policy transition. youth unemployment; shortage of rationally. lution powered by technology and grow by 1.0% in 2020. • The lack of fresh catalysts. skilled manpower supply; the eco- We ought to have an outreach- innovation; disruptive technology The domestic growth engine • Investors’ “wait and see” nomic divide; wider growth and ing heart to help each other to and innovation; as well as work- also faces hurdles. The Malaysian approach. income disparities between states grow this country. force disruption. economy has been running on • FTSE Russell placing Malaysia as well as between rural and We should not be complacent In confronting future chal- one leg, which is private con- on the World Government urban households; limited eco- with what we have achieved thus lenges, the government will have sumption, which makes up 58.1% Bond Index (WGBI) watch list. nomic empowerment for the far as our competitors in the to be prepared to forthrightly and of total GDP and had contributed • Placing Malaysia on the US Bottom 40 (B40) income house- region are fast catching up and honestly engage Malaysia as a an average of 5.0 percentage Currency Monitoring List. holds; as well as somewhat limited becoming strong contenders for whole, its institutions and its points to real GDP growth (an • Lingering uncertainty and fiscal space. FDI. people. FocusM average of 5.0% a year in 2016-18) concerns about political How we navigate these chal- and 3.9 percentage points to real developments, including lenges could have implications Malaysians want united and Lee Heng Guie is executive direc- GDP growth of 4.7% in Jan-Sept leadership transition and the now and over the medium and caring nation tor of the Socio-Economic 2019. policy changes that will long terms. Political leaders The government should act Research Centre, an independent A discernible pullback in con- follow. should put the country’s and sternly against those fanning organisation

FocusM | Nov 30-Dec 7, 2019 property 23 Share units in strata properties: Time bombs, one after another

• What confuses (STA) or the Building and everyone - law Common Property Act (BCPA) which are now obsolete. makers, There is only “implied” use enforcement and implications of share unit; it authorities, may be that policy and law makers assumed that the term is consultants and so trivial and that “everyone buyers - is how share knows it well.” units are allocated Unfortunately, strata stakeholders have been driven up the wall for various reasons just • Until the issues are because of issues related to share resolved, developers unit. and management What is it? bodies have to Basically, share unit is a numeri- allocate huge sums cal representation of the benefits for lawyers, because and liabilities relating to a strata everyone is suing owner’s parcel. In other words, It’s great to own a home in the sky or an office with grand, commanding views but be educated on what the more the share units, the exactly the costs are besides the purchase price everyone for every more the service charges that reason need to be paid, and the more the voting rights - there is absolutely to the purchase price; in fact, that RM10/sq ft for a 2,000 sq ft space. had to be forced into accommo- no rocket science about this. is one of the best models com- There is a disparity in rent of 1:5 dating their collection by this What confuses everyone, pared with the rest. and the only way to balance this share unit formula against the from law makers, enforcement Disputes arise when policy disparity legally is to adjust the actual costs of operation. authorities and consultants to makers and law enforcers allow selling price/sq ft or share unit In the Act, the term “different by purchasers, is how share units developers/consultants to apply weightage so that either such dis- rate,” although principally wrong, YL Lum are allocated. an “inequitable” share unit calcu- parity is addressed on the basis of provides an avenue to do some Once we get that right, the lation with incomplete consid- "lower buying price" or "paying realignment in service charge people nowadays are rest will follow through. It’s like, if eration of an asset’s purchase less long-term service charges" - rates. better aware of the you know how much “share” you price versus its yield and its con- this is totally equitable, fair and Hence, it is not necessary to term ‘share unit,’ which have been allocated in a com- sumption. reasonable, too, isn’t it? introduce a whole new scheme of is a very fundamental pany, you will have no headache This results in people paying But sadly, instead of fixing the share unit calculation. This is unit of measurement in administering the company very little money to buy very pre- root of the evil, we made two making a mistake on top of Pstratified properties. shareholder’s activities. mium assets yet do not contrib- mistakes, one after another, when another mistake. For the public, if it is not Shareholders of a company ute an equitable share of the drafting the laws. Recently, another SMA self- because they are billed monthly get their shares by a purchase service charges. That’s the root of In SMA, we allowed the man- implanted time bomb caused a based on ‘share unit,’ many may price or other means, and they the evil here. agement corporation (MC) to fiasco in the industry, where dif- still not be familiar with this term enjoy the benefits and liabilities What could have been done is apply “different rates” on “signifi- ferent judgements were made in and still think service charges are proportionally, except that in the to tighten the process of share cantly different” components in two different courts on the issue being measured or billed on the case of strata living, the “share units allocation and fix it to asset the development, which is a typi- of whether the joint management basis of ringgit per square foot unit” owner has to continuously value (not purchase price) against cal “diplomatic” Malaysian way to body ( JMB) can apply different (RM/sq ft). and perpetually contribute a yield and against the costs of solve problems - “apa-apa pun rates as allowed for by the MC. Probably a large majority of fixed amount of money propor- maintaining the premises. boleh bincanglah” - and we This problem should not even strata property owners, too, have tionately. But before condemning the totally forgot that the share unit have occurred in the first place; if no clue what a ‘share unit’ is or This is where people feel the so-called "malpractices" in share assigned already (supposedly) strata title is issued on vacant how it is being associated with pinch every month, hence there unit allocations, we must recog- takes into serious consideration possession, we could have first their assets because many build- is greater demand for clarity in nise that there are valid reasons the different weightage of signifi- gone to the MC instead of the ing managements, when com- share unit allocation in a strata for some of these practices cantly different components in a JMB. Then we don’t need two sets pelled by the authorities to development. regarding the basis of share unit development. of laws. comply with the law, move to bill So, the key issue here is not allocations. Hence, allowing “different In fact, there are trickier owners on the basis of ‘RM per whether it’s fair or not but For example, one reason why rates” on a post-strata register is issues that require very close share unit’ - and that is when the whether it is equitable or not. car parks are downrated in the like allowing an annual general attention: Is it fair that early bird problems start. Fair is subjective, equitable is share unit allocation by lower car meeting of a public listed com- retail lot buyers are given a dis- For very complex mixed measurable. park prices as the basis is that pany to apply a different multipli- count - when buying the same- developments, the time bomb For example, is it fair that the this will contribute to the long- cand on top of the shares equita- sized unit and allocated the same which had lain dormant for many service charges for condomini- term sustainability and equitabil- bly allocated to every shareholder share units – over those who buy years finally erupted when the ums are the same as for retail ity for the parcel owners. - this time bomb is principally later at full unit prices? What Strata Management Act (SMA) space? Is it fair if a car park is Car parks are low-yielding - and mathematically wrong. about condominiums? Let’s not came into force. given a lower weightage in share say with a cost of RM30,000 per get into this for time being. What is ‘lawful’ does not seem unit allocation? Is it fair that one car park bay at 3.5% net yield, this Adding salt to the wound But if we consider this issue to tally with what is “practical,” party owns all the car parks? Is it implies a minimum income of And to add salt to the wound, positively, we should be grateful and before the public, property fair if one owner buys/owns half RM3/bay/day. SMA has introduced a new that everyone is making an effort stakeholders/consultants and of the condominium units in the If these car park bays are to weightage factor into the share to improve the situation. even lawyers/judges are able to same block? Is it fair if all the big be imposed a rate of RM0.5/sq ft unit allocation that has totally no We are trying to address the catch up with the shock wave, lots in the strata malls belong to x 120 sq ft, that’s RM2 a day serv- association with the asset’s value, issues as they arise, and as long everyone started suing everyone one owner? Is it fair that one ice charge. Therefore, unless a and assumes that every strata as we are converging and not else and judgements with all penthouse owner is being allo- car park can enjoy a turnover of development’s operational cost diverging, eventually we will sorts of interpretations are writ- cated 10 parking bays? more than two or three times, the fits into this pre-determined figure out something workable ten and rebutted from court to The answer to the above is gross profit for the car park bay table. for most strata stakeholders. court. simple: it will be “fair” if everyone remains RM1/bay/day only. This immediately triggered But until then, without know- So, what is so wrong with the is charged “equitably.” Therefore, the service charge another time bomb (totally ing when, for all the developers, “share unit” in our country that Because the only piece of of a car park cannot be expensive. unnecessarily), causing the fol- JMBs and MCs out there, you does not seem to be even an issue puzzle missing in all these ques- Our forefathers, who assigned lowing problem: a unit owner have to allocate large amounts of in other countries like Hong Kong tions is “acquisition price,” i.e. if car park share units by purchase who paid a premium price for an money for lawyers, because eve- or Singapore which have a much you want more voting rights, you price, seemed to have done it in asset suddenly had to be allo- ryone is suing everyone for every longer history of strata proper- pay for it, and you must be really an equitable, fair and reasonable cated a share unit which does not reason. FocusM ties? sure that you can afford to pay way. tally with his perpetual service The truth is, there is no clear service charges perpetually. Similarly, 80,000 sq ft for an charges and which impairs his YL Lum is a committee member, definition of share unit in the So fundamentally, it is not anchor tenant space can fetch yield expectation. research, of Persatuan Pengurusan SMA, nor in the Strata Title Act wrong that share units are linked RM2/sq ft rent, compared to Then, mixed development Kompleks Malaysia (PPK) 24 property FocusM | Nov 30-Dec 7, 2019 Indian hotel chain Oyo targets more rooms in Southeast Asia

“This is further enhanced by the diverse talent that includes people with a design background, tech experts, and more,” Tan by Sharina Ahmad says. He adds that the company ravelling across India has an in-house stack of proprie- at the age of 17, Ritesh tary technology powering more Agarwal stayed in more than 20 applications for all its than 100 bed and stakeholders, including custom- breakfasts, guest ers, asset owners and employees. Thouses and hotels, leading him to Backed by more than 400 realise there was a massive dearth microservices and 2,100 full- of affordable and good-quality stack engineers spread across hotels in the unbranded budget multiple locations, Oyo is able to hotel category. deliver a consistent high-stan- This spurred him to establish dard experience to travellers. Oyo Homes & Hotels in 2013. His “We’re using machine learn- original business model was to ing for dynamic pricing, and arti- aggregate and brand small budget ficial intelligence and natural lan- hotels in India, offering a guage processing for helping cus- common reservation platform tomer services. The Internet of and branding with minimum Things is a big area for us where quality standards. Oyo is an acro- we are experimenting with smart nym for “On Your Own”. To date, Oyo has more than 16,000 franchised and leased rooms in more than 450 properties in Malaysia switches and smart lighting to In the span of six years, significantly improve guests’ Agarwal managed to grow the overall experience,” Tan says. company in India to become the market for Oyo in Southeast Asia. Apart from the budget hotel, and chic living spaces. world’s third-largest and fastest- We are constantly looking at being Malaysian homeowners also show “What we are attempting with Industry forecast growing hospitality chain of a long-term, wide-scale, impact- strong enthusiasm towards Oyo Oyo Homes guarantees a unique With Visit Malaysia 2020 only a leased and franchised hotels, ful and sustainable company for Homes, which is the company’s experience for our guests and month away, Tan says the com- homes and living spaces. our customers, our asset owner new offering. higher yields for homeowners. pany is optimistic that its col- And he is not resting on his partners, our stakeholders and “We are witnessing a lot of Malaysia offers a huge market laboration with Tourism Malaysia laurels. Malaysia is Oyo’s first our Oyopreneurs. interest in this category. opportunity, and travellers visit- to extend Oyo Malaysia’s brand venture outside India and the “We look forward to strength- Travellers trust our brand and we ing the country are keen to will help achieve the target of 30 company has been expanding ening our footprint across the are already known for pioneering explore the comforts of a fully- million tourist arrivals in rapidly here as well as in the country with a diverse portfolio effective solutions tailored to their managed holiday home.” Malaysia by December 2020. Southeast Asia region. and relentless commitment needs, and Oyo Homes is On the topic of collaboration “We hope that our 450 Oyo Oyo is targeting to achieve towards delivering more choices designed to do exactly that,” Tan and partnership, Tan notes that hotels or 16,000 rooms across the two million rooms by 2025 in and delighting our guests with adds. the company is open to working 50 towns and cities in Malaysia Southeast Asian market from exceptional customer experi- with brands that can leverage the are ready to offer our guests a 75,000 currently. The company ences,” he tells FocusM. Chic living spaces synergies of each other, seamless unique brand of Malaysian hos- has a presence in Indonesia, According to Tan, the hospitality experiences and customer-first pitality. In fact, we hope the Vietnam, Thailand and the chain aims to extend the new approach backed by innovative guests will gain experience as Philippines. Oyo Homes offering to the most technology. well as better value each time Since its foray into Malaysia in Tan says Oyo is travelled destinations in the they stay with us,” he says. 2017, Oyo Rooms Hospitality Sdn working towards country, such as Kuala Lumpur, Embracing technology He adds that the company Bhd has received one million creating quality Selangor, Melaka, Penang, Kedah Technology is deeply embedded will continue to bring its suc- room bookings in all its managed and chic living and Johor. in Oyo’s DNA – the company util- cessful model of combining spaces and franchised properties Oyo Homes combines Oyo’s ises technology-based solutions design, hospitality and techno- throughout Malaysia. existing on-ground operations, on the suppliers’ side to help logical expertise, financial To date, the company has hospitality technology, house- them manage end-to-end opera- acumen and operational capa- more than 16,000 franchised and keeping skills, revenue manage- tions. bilities to real estate owners leased rooms in more than 450 ment algorithms and distribution “Technology continues to be a around the world. properties across some 50 cities prowess to deliver a hassle-free key growth driver and competi- These methods will give them throughout the country. solution to homeowners. tive advantage for Oyo. We use the ability to get a higher return Oyo Rooms Hospitality coun- More than 1,000 homeowners innovative technology solutions on investment, access easy try head Tan Ming Luk says the in major cities in the country end to end to facilitate standardi- financing opportunities, trans- company has achieved significant have been part of the Oyo chain sation of services, amenities and form their hotels, and offer good growth in the last two years since of home management service. in-room experience, thereby quality customer service, thereby its inception. Tan says the company is helping maintain service stan- significantly increasing occu- “Malaysia is a strategic growth working towards creating quality dards. pancy and profitability. FocusM

through partnership funds, Oyo does not India, Malaysia, the United Arab Emirates, History of budget chain Oyo own any of the hotels it manages around the Nepal, China, the UK, the Philippines, Japan, world, including Malaysia. The business is Saudi Arabia, Sri Lanka, Indonesia, Vietnam purely management franchising. and the US, among others. N 2012, Ritesh Agarwal launched Oravel Fellowship from Paypal founder Peter Thiel. In 2018, Oyo acquired two assets – a The company’s investors include Stays to enable listing and booking of Agarwal is the first resident Asian to be Chennai-based service apartment operator SoftBank Group Corp, Greenoaks Capital Ibudget accommodations. After under- accepted to the Thiel Fellowship. The fellow- Novascotia Boutique Homes and Partners, Sequoia Capital India, Lightspeed taking months of research and staying in ship is intended for students under the age Weddingz.in, a Mumbai-based online mar- India Partners, Hero Enterprise, Airbnb Inc various bed and breakfast homes, guest of 23 and offers them a total of US$100,000 ketplace for wedding venues and vendors. In and China Lodging Group Ltd. houses and small hotels across India, he over two years, as well as guidance and other May this year, Oyo acquired Amsterdam- Oyo currently has over 17,000 employ- rebranded Oravel Stays to Oyo in 2013. resources, to drop out of school and pursue based @Leisure Group, Europe’s largest ees globally, of which approximately 8,000 Oyo partners with hotels to give similar other work such as scientific research, creat- vacation rental company. are in India and South Asia. Oyo Hotels & guest experience across cities. Shortly after ing a startup or working on a social move- Over a span of six years, the startup Homes is now identified as a full-fledged launching Oravel Stays, Agarwal received a ment. expanded globally with thousands of hotels hotel chain that leases and franchises grant of US$100,000 as part of the Thiel Except for three properties that it owns and vacation homes, and millions of rooms in assets. FocusM | Nov 30-Dec 6, 2019 property 25 Gamuda Cove to commence water theme park at end-2021

amuda Land recently being generated for Gamuda held a tree-planting Cove,” he says. ceremony at its Soo adds that Gamuda Land Gamuda Cove town- has obtained approval to part- ship in Dengkil, ner the Ministry of Water, Land Selangor,G to mark the com- and Natural Resources and mencement of its 7.3ha rainfor- Selangor state government to est-themed water park which is jointly manage and operate Paya targeted to open in December Indah Wetlands, which is located 2021. adjacent to Gamuda Cove. The water theme park, Paya Indah Wetlands will which is expected to drive the also be rebranded as Discover 619ha Gamuda Cove township Wetlands to promote eco-tour- towards being the catalyst of ism in the area. Visitors can look growth in the Southern Klang forward to new addition of raw Valley, will showcase 18 rides – and rustic activities such as all of which will be featured in cycling, fishing, bird watching, Malaysia for the first time. horse riding and bamboo trail Around 70% of the water theme walking in a natural pristine park area will be dedicated to and wild setting. There will also green spaces filled with tropical be hot air balloons for those trees, shrubs and flora. who would like to have an aerial Other than the exciting rides From left: Gamuda Cove GM Wong Yik Fong, Gamuda Land executive director Datuk Abdul Sahak Safi, CEO view of the wetlands. and slides, the water theme Ngan Chee Meng, COO Aw Sei Cheh and Soo at the ground-breaking ceremony Soo is confident that park also features a 300m lazy Gamuda Cove will be the key river, twin surf beach pool with destination for local and inter- private cabanas, simulated surf- tain biking and aerial climbing company from other property nomic growth in this area. national visitors alike. ing and interactive waterplays. through rope courses, while the developers is its strong town- “From the recently opened “Ultimately, it is not just Aside from the water theme Hangout Village offers leisure making principles. interchange to the 24ha central about creating quality products park, there is also a discovery experiences such as shopping, “We do not shy away from park, the laying of 5G infra- for our customers, but also pro- park nearby that provides two dining and relaxing by the pool. upfront investment to create structure, the opening of viding a good experience and recreational zones – The The discovery park is slated to value for our customers. Discovery Park in December sustainable value creation to Adventure Park and the open in December. Between mindful master-plan- and the work commensuration people who will call this place Hangout Village. The Adventure Gamuda Land leisure and ning and good placemaking, we for the water theme park, we home, a place where they would Park allows thrill seekers to hospitality director Aaron Soo are creating a hive of tourism are confident that our custom- want to be a part of, grow up enjoy indoor go-carting, moun- says what differentiates the activities to drive socio-eco- ers will benefit from the value and grow old in,” he says. FocusM

Sime Darby Property JV offers BTS facilities

ime Darby Property Bhd and its partners, They provide tenants ready infrastructure Mitsui & Co Ltd and Mitsubishi Estate Co that includes water, power supply and telecom- SLtd, recently marked a significant mile- munications, and is strategically located amid stone with a ground-breaking ceremony for Malaysia’s industrial heartland of Bandar Bukit build-to-suit (BTS) industrial facilities at Raja. Bandar Bukit Raja Industrial Gateway. The first two tenants at Bandar Bukit Raja The development will be undertaken by Industrial Gateway – global logistics service their joint-venture company, SDMIT provider Leschaco (M) dn Bhd and consumer Development Sdn Bhd, and is spread across electronics chain store Senheng Electric (KL) 15.8ha of prime land within the Bandar Bukit Sdn Bhd – were unveiled during the ground- Raja township. breaking ceremony. The BTS facilities are built to match the Construction on the BTS facilities for the customer’s business requirements, offering two tenants is slated to begin simultaneously in flexible spatial designs for high degree of November 2019. Both facilities have been warehouse customisation, long lease options planned on a combined land area of about 10 to optimise costs, and the latest technology to acres with build-up area of about 385,000 sq ft. suit technical and operational needs. FocusM An artist’s impression of Bandar Bukit Raja Industrial Gateway

Core Residence @ TRX officially launched

ore Precious Development Sdn ft to 1,022 sq ft. “The 50-storey building – featuring Bhd, a joint-venture company TRX, an integrated 28ha site at the an infinity pool, air gym and a seven- Cbetween China Communications heart of Kuala Lumpur, was developed storey podium with a central park on Construction Group (CCCG) and WCT by TRX City Sdn Bhd, which is wholly the roof – is equipped with many other Holdings Bhd, recently launched Core owned by the Ministry of Finance. world-class amenities that can cater to Residence @ TRX – the first residential Core Precious chairman and man- the upscale lifestyle of financial profes- project at the Tun Razak Exchange aging director Zhang Bao says the resi- sionals and expatriates. (TRX). dential project, which has Green “Core Residence @ TRX enjoys ulti- Core Residence @ TRX is a high- Building Index and LEED green build- mate accessibility with the integration end freehold property worth a gross ing certification standards, offers many of transportation services and access to development value of RM1.4 bil. amenities for professionals and finan- multiple highways, and provides a Developed on a 0.6ha land area, it fea- cial practitioners who will live and work seamless connectivity with prime facili- Zhang says Core Residence is equipped with many tures three blocks of serviced resi- in the business district of Kuala ties nearby in retail, entertainment, world-class amenities dences with units ranging from 624 sq Lumpur. education and healthcare,” he says. FocusM 26 property FocusM | Nov 30-Dec 6, 2019 Difficult road ahead for WeWork

here has been a lot of chairman also told employees pain for WeWork in the about a planned change to its last few months. It business model, according to the doesn’t get easier from Financial Times. Instead of sign- here. ing long-term office leases, carv- TThe office leasing startup has ing them into chunks and re- been on a wild ride. Its planned leasing them for shorter-term initial public offering was rentals, WeWork wants to manage derailed in September by inves- commercial properties for land- tors’ shock at the company’s red lords in most cities. The business ink and self-dealing by its CEO. It approach is similar to that of was close to running out of cash hotel chains such as Hilton and before an emergency financing may be a more viable strategy – last month. Its valuation withered assuming landlords go along. But to less than the investment WeWork will still need to clean up money it had collected. the mess from all the leases it Masayoshi Son, the SoftBank signed in its expansion binge. Group Corp founder and There are good ideas at the WeWork’s biggest backer, said heart of WeWork. Businesses turning around the startup would don’t want to track down office be “simple”. It isn’t. space, commit to long leases and To be viable, WeWork must deal with the hassle of keeping an continue to slash costs, reassure There is a lot of hard work ahead for WeWork in order for it to survive office running. But all that a nervous workforce, build out WeWork has proved is that it’s hundreds of new offices with possible to build a big business uncertain financial prospects, through, WeWork also must get target to generate positive cash on average generated US$1,522 with some innovative approaches possibly mollify tenants and land- its costs under control – and that flow by 2023. That’s a long time to from each paying tenant in the as long as it spends money like lords who might be unsettled comes at a high human toll. be financially unsustainable. The third quarter of 2017 and US$1,327 there’s no tomorrow. Now that about working with the company, WeWork has said it’s laying off company appears to have burned for the three months ended in WeWork is trying to last, there is a reevaluate its office portfolio and 2,400 people, or nearly 20% of the through US$1 bil of cash in the September. lot of hard work and many diffi- stabilise declining average rent more than 12,500 employees it most recent quarter. The percentage of its open cult choices ahead, and there are payments and occupancy rates. had at the end of June. The com- But WeWork can’t just cut its desks with paying tenants has no guarantees that WeWork can For now, WeWork’s five-alarm pany is likely to shed more way to health. It also needs to also dropped. The company make it work. fire is doused. SoftBank agreed employees as WeWork offloads spend to bring in revenue from needs to stabilise, if not increase, My rough numbers: If last month to move up a US$1.5 side businesses. its rapid expansion. In the 12 occupancy rates and per-location WeWork eventually reduces its bil (RM6.3 bil) investment it had The job cuts might slice hun- months ended in September, the revenue. This is a tall order. payroll by 4,000 people, at an planned to complete next April. dreds of millions of dollars from number of WeWork locations bal- WeWork has signalled it is average compensation cost of SoftBank is also backing a plan – WeWork’s costs, and there is looned from 334 to 625, according reassessing office deals it signed US$150,000, that works out to not fully fleshed out – for WeWork more to do. In the 12 months to a company presentation to or was considering. The company US$600 mil in savings. That to borrow US$3.3 bil and obtain a ended June 30, WeWork’s corpo- bondholders. It’s unclear how may be smart to wriggle out of doesn’t factor in severance and backstop for as much as US$1.75 rate overhead totalled about many of those offices have paying unpromising leases, but that benefits that WeWork has said it bil more. US$1.9 bil, or the equivalent of tenants, but it’s likely the com- could force WeWork to pay penal- will make to people it is laying off. Thus, WeWork will be three-quarters of WeWork’s pany must revamp a chunk of ties. My calculations include dependent on SoftBank, which reported revenue for that period. those offices to WeWork’s specifi- Walking away from deals may WeWork’s reported operating has already expressed regret for Fitch Ratings, using different cations and perhaps wait out free also make other landlords wary of expenses for its locations before putting so much faith in WeWork numbers, has calculated that rent periods for new tenants. renting their buildings to WeWork they open to tenants, minus and Adam Neumann, the co- WeWork’s overhead costs need to Each fresh tenant, however, or less eager to give it breaks on WeWork’s adjustments to founder and ousted CEO. come down from about 60% of its comes with an uncertain finan- rent and help with construction account for periods where it Second thoughts inside revenue to a “low double-digit cial profile. WeWork in its disclo- costs. Having fewer locations, or doesn’t owe rent to landlords on SoftBank about a stock repur- percentage” in the coming years. sures to prospective IPO inves- locations leased on less generous buildings without tenants. The chase that is part of WeWork’s Fitch figured it would take tors said it had been expanding terms, puts a ceiling on potential costs also include WeWork’s sales bailout make me question about US$1 bil in cost reductions into cities and countries where future rental income. The com- and marketing operations, costs SoftBank’s commitment to see to put the company on sounder rents tend to be lower than they pany as of June 30 had committed to scout and develop new build- through a multiyear WeWork footing. WeWork recently outlined are in more established WeWork to making US$47 bil in lease pay- ings and new markets, and gen- turnaround. management changes to employ- markets such as New York, ments in coming years. eral and administrative costs. – Assuming the bailout goes ees and said the company has a London and Washington. WeWork WeWork’s new executive Bloomberg

South Korea sees rise in sales of covered bonds

olicy makers often bemoan of assets such as mortgages, can ered bonds to preemptively unintended consequences, be partly counted as deposits secure a stable loan-to-deposit Pbut in South Korea they when banks calculate their loan- ratio, and that could cause may be smiling upon one stem- to-deposit ratio, helping lenders short-term market interest rates ming from efforts to cool a siz- that have made a lot of home to rise, according to Hanwha zling housing market. loans. That’s prompted sales of Investment & Securities Co. Those steps are prompting a covered notes to almost quintu- The new rules from next year jump in sales of covered bonds, a ple to 3.7 trillion won (RM13 bil) will increase the weighting of type of debt that’s not so so far this year, with Standard household loans when banks cal- common in Asia but that’s Chartered Bank Korea and culate their loan-deposit ratios proved a reliable source of fund- Shinhan Bank issuing them for while reducing it for corporate ing even in times of crisis in the first time, and Woori Bank debt. Europe. planning an offering. Covered bonds differ from Korea has been promoting President Moon Jae-in has securitisation such as mortgage- covered bonds for over five years reaffirmed that his administra- backed securities in that the to help banks finance the coun- Korea has been promoting covered bonds for over five years tion will bring rising housing assets remain on banks’ balance try’s household debt in the long prices under control by deploy- sheets. Since the Korean term, but only now are sales ing tougher measures if current Covered Bonds Act took effect in really taking off. To curb the growth of Korea’s boosting lending to companies in steps don’t work, adding that the 2014, Kookmin Bank had been Home prices in Seoul have record household debt stemming rules from next year. That’s government won’t use the real the only lender that sold such jumped 13% in the past two from housing costs, financial where covered bonds come in. estate market to stimulate slug- debt until Standard Chartered years, as the central bank cut regulators will encourage banks The securities, guaranteed by gish economic growth. Bank Korea’s debut offering in interest rates to the lowest ever. to cut household loans while the issuer and backed by a pool Lenders may sell more cov- June. – Bloomberg Nov 30-Dec 6, 2019 | FocusM | 27

XTRA_b3_BE_2015_008_Totale_262x370_4c_Q.indd 1 19.03.19 10:28 28 columns FocusM | Nov 30-Dec 6, 2019

by QuestionTime P Gunasegaram As Sri Ram enters Taman Rimba fray, should Khalid Samad be sued?

he sequence of events leading to a revised approval for the RM3 bil Taman Rimba Kiara development shows Tthere are serious questions as to why the new government is going ahead with the project, albeit one that has been scaled down. As if that were not contro- versy enough, prominent lawyer Datuk Seri Gopal Sri Ram stepped into the fray when he offered himself pro bono to defend KL City Hall in an ongoing court case brought by residents against the private development City Hall questionably approved. This raises legitimate questions such as when does the government limit the acceptance of pro bono cases involving itself and its agencies and the further question of how does it ensure whether it is in the public interest The Taman Tun Dr Ismail Residents’ Association and Friends of Bukit Kiara are opposing the RM3 bil Taman Rimba Kiara development to do so. There is another issue to consider - whether Federal Ram offered to work for City Hall by developers. Besides, City Hall Yeoh and a group of TTDI the controversial Taman Rimba Territories Minister Datuk Khalid for free. And it accepted. Sri Ram has a direct interest in the pro- residents had opposed a scaled- Kiara development, after a search Samad can be sued for misfea- reportedly said: “It’s been 36 years ject. down version of the project in of company shareholdings. sance, basically, abuse of author- since the longhouse people were Also, by engaging a promi- July. The Malay Mail quoted Yeoh In his ongoing court trial, ity, given a recent ruling by the promised accommodation and nent lawyer such as Sri Ram for as saying: “I have also obtained Tengku Adnan is charged with Federal Court. DBKL (City Hall) is doing its best free, it raises the spectre that this support from the other KL MPs, receiving RM3 mil in bribes from The apex court had unambi- to deliver it to them. DBKL asked may become a marketing plat- seven of them. two developers through the firm guously ruled that prime minis- me whether I would do it free of form for Sri Ram’s services. Sri “They have given me a letter Tadmansori Holdings of which he ters and ministers are public offi- charge for them and I said yes.” Ram has routinely done work for on our proposed resolution is the majority shareholder. cers which allows them to be But not all longhouse resi- many prominent corporate per- which is to revoke the develop- Further, an investigation by sued for misfeasance. Also, if dents are for the project, with sonalities as well as corporates. ment order given, and number anti-corruption watchdog NGO misfeasance or abuse of authority significant numbers opposing it The outcome of the pending case two - if you want to continue to C4 shows that Tadmansori is also is proved, then not only is the while the Taman Tun Dr Ismail will have a major bearing on the allow them to build, they must linked to the Taman Rimba Kiara government liable for damages Residents’ Association (TTDI-RA) fortunes of the developer build in the current longhouse development, thus raising allega- but it is possible the public officer and Friends of Bukit Kiara, involved in the project. footprint - 4.4 acres and not go tions of a conflict of interest as is too. oppose the development and The allegations that are being beyond this footprint.” Adnan was federal territories It was reported the RM3 bil have outlined alternatives which made about the Taman Rimba minister when the project was Taman Rimba Kiara develop- would take into account long- project are very serious and it MACC urged to step in approved, Malaysiakini reported. ment, a joint venture owned 49% house residents’ needs as well. was made into a campaign issue Yeoh said then that she had All these strongly indicate, at by Yayasan Wilayah Persekutuan The idea of pro bono in the in the last elections, especially by requested a meeting with (the the very least, serious conflicts of (YWP - the charity arm of City Najib prosecution would have current Segambut MP Hannah then) newly appointed Malaysian interest and probable corruption Hall) and private developer been two-fold - it is a public Yeoh who has tirelessly champi- Anti-Corruption Commission by those involved in the approval Memang Perkasa Sdn Bhd linked interest case where it is impor- oned the issue. (MACC) chief Latheefa Koya to process, particularly Tengku to Pavilion group’s Tan Sri tant to mount a strong case Yeoh, who is also the Deputy discuss the issue, as Federal Adnan, which can invalidate the Desmond Lim Siew Choon, was against potentially strong Women, Community and Family Territories Minister Khalid approval process. approved in 2014. Lim and his defences. And if the services were Development Minister, said free Samad’s predecessor, Datuk Seri Under such circumstances, Sri family are known to be close to free there can be no accusations legal aid does not make sense as Tengku Adnan Tengku Mansor Ram’s entry into the fray on the former premier Datuk Seri Najib of possible private gain - every- DBKL does not need free legal had abused his power in granting side of City Hall, which appears to Razak and his wife Rosmah. thing is above board. service from Sri Ram. It is the the development of the Pavilion have had serious lapses in control The project involves the con- TTDI residents, who fought Taman Tun project. processes when approving the struction of luxury service apart- Not in the public interest against the development of a por- “My hope is that MACC will project, cannot be considered to be ments, as well as an apartment It would be a stretch to say that if tion of Taman Rimba Kiara, who look into all the reports that have in the public interest, especially block to accommodate the long- Sri Ram served pro bono in the deserve free legal aid, she added. been lodged, also the fresh report since City Hall’s YWP is itself inter- house residents displaced by the Taman Rimba case he would be “They (City Hall) don’t need lodged by TTDI-RA last week (in ested in the project. development. Subsequently, the acting in the public interest - help as they have deep pockets,” July).” And in the unlikely event that new government scaled down the many of those opposed to the she was quoted as saying by The Khalid had said it was not the TTDI residents lose the court project, a move which is still project are residents and there Malaysian Insight, “The residents, practical to scrap the Taman action to stop the development opposed. may well be many elements of on the other hand, are passing Rimba Kiara project as City Hall because of conflicts of interest With such a chequered, dubi- criminality in the original the hat around and carrying out would have to pay a compensa- and corruption, they may yet ous history, should City Hall have approval of the massive Taman fundraising on their own to save tion of over RM200 mil. However, have further avenues to sue the accepted Sri Ram’s offer of pro Rimba Kiara development. a neighbourhood park. legally speaking, a contract can minister directly because of that bono services? Such pro bono Under such circumstances, it “I hope the Federal be invalidated if it was procured Federal Court ruling. FocusM services came into public promi- is not prudent of City Hall to Territories minister realises that illegally. nence following charges against accept the services considering Kuala Lumpur residents are In a report in July, P Gunasegeram is the editor-in- Najib. Sri Ram was among those that it is a government agency informed voters and that his Malaysiakini had reported that chief of Focus Malaysia. He says the procured to prosecute Najib. which is routinely involved in explanation on this pro bono the firm allegedly used by Tengku entire process for development The federal territories minis- many commercial ventures, such offer simply doesn’t make sense,“ Adnan to allegedly receive bribes approvals needs a major overhaul try said in a statement that Sri as approving projects undertaken Yeoh added. from developers is also linked to and a close watch by the MACC FocusM | Nov 30-Dec 6, 2019 columns 29 Bursa Malaysia has a new regulation CEO. So what?

Pound Foolish

by Emmanuel Samarathisa

ecently, Bursa Malaysia Bhd announced it would be a leaner entity next year. Or at least that was the crux ofR its statement on Nov 22. As usual, when most of us hear such pledges, we gush. “Finally, there will be a separation of powers. Also, what’s not to love about having a lean entity?” analysts tell me. Bursa Malaysia recently announced that it will phase out the CCO and COO positions starting next year What will happen at Bursa Malaysia is some positions such as the chief commercial officer the Bursa scheme of things. But I and regulatory aspects of Bursa listed companies. Group Ltd and LionGold Corp (CCO) and chief operating officer could be wrong here because Malaysia. This balancing act The problem is the quality of Ltd. Hooray, Malaysia Boleh! (COO) will cease. This means organisational structures might between stern and sexy is not the disclosure. Market partici- Over here, enforcement has current CCO Selvarany Rasiah paint a different picture – a pic- unique to Bursa. Regulatory pants also point out that the been at a snail’s pace. Just look at and COO Azalina Adham will not ture we do not clearly have at safeguards have been debated unwritten rule is still a “merit- the number of insider trading have their contracts renewed. this point in time. and mulled when stock based” regime. One of the pain cases that are open. Till today we Also bidding goodbye is chief Now Umar’s appointment as exchanges worldwide began points they highlight is the are awaiting the fate of regulatory officer Yew Yee Tee. CEO in December last year did demutualising in the 1990s. The unusual market activity (UMA) Supermax Corp Bhd co-founder Instead, there will be a new pique curiosity. Prior to Bursa concern revolves around stock query. Here Bursa Malaysia Datuk Seri Stanley Thai over his position: the chief executive offi- Malaysia, he was group CEO and exchanges and their need to promises action to companies insider trading charge. He was cer (CEO) of regulation, among group managing director of attract and retain listings to rake that do not provide a reply when sentenced to five years’ prison others. Perhaps for the first time, insurer MAA Group Bhd. He is a up earnings. They have to do this slapped with a UMA. on Nov 24, 2017. That was like... in the history of Bursa Malaysia, chartered accountant and has a without neglecting their fiduci- This is prescribed in two years ago? we will have a dual-CEO struc- significant experience in banking ary duty to shareholders. Paragraphs 9.11 and 9.16 of the But whichever way you see it, ture. Does this mean the powers and financial services. According to Bursa Malaysia’s listing requirements where com- the answers to an effective stock of current CEO Datuk Muhamad His predecessor Datuk Seri 2018 annual report, there were panies are obligated to announce exchange are complex. Maybe, in Umar Swift will be curtailed? Tajuddin Atan was on a different 783 listed companies on the Main to the bourse any material infor- our case, we should defer regula- Sure, according to Bursa league. Before leading Bursa Market, 119 on the ACE Market mation not previously released to tions totally to the SC. So that Malaysia, what we now have is a Malaysia, Tajuddin was managing and 13 on the Leading the market that may trigger a acts as the long arm of the law flatter organisation. The current director of RHB Bank Bhd and Entrepreneur Accelerator UMA query as well as ensuring while Bursa Malaysia is purely business leadership team will group managing director of RHB Platform (LEAP) Market. The that the disclosure is accurate. business. But the longer we mull report directly to Umar. The man Capital Bhd. He also had a latter is geared towards small Critics of this system say over this, the more we will be at himself will also be bestowed chance to familiarise himself and medium enterprises (SMEs). there has to be a balance of the a disadvantage. Our stock market upon a greater span of direct with the Malaysian capital LEAP remains a draw as SMEs carrot-and-stick approach used remains unattractive. management and oversight of market as he served as a non- could circumvent the stringent by Bursa Malaysia. “You need to If foreign funds were the business functions. executive director and public requirements of the Securities allow some – keyword here: some benchmark, then they have “The organisational restruc- interest director on the board of Commission (SC) over Main – speculation in the market,” says yanked RM9.17 bil of local equi- turing will make Bursa Malaysia a Bursa Malaysia from July 2008 Market listings. a market participant. ties as of Nov 22 or 78.4% of last more agile and efficient organisa- until March 2011. Umar lacked Also as per the annual report, year’s total foreign outflow of tion, better able to meet the that pedigree. Bursa Malaysia receives its sales Solution across the straits? RM11.69 bil. This makes Malaysia, changing needs of customers and On paper, at least, the new and profits from running the One answer to how we should in terms of indices, a laggard as stakeholders in a fast-evolving structure separates the business stock market. Its operating reve- approach business and regula- compared to its peers in global market,” Umar said in a nue mostly comes from securities tion at the stock exchange is Southeast Asia. According to statement on Nov 22 in response and derivatives trading as well as found across the causeway. The Bloomberg data, the FBM KLCI’s to the managerial shifts. listing and issuer services. Singapore Exchange in 2016 12-month forward earnings esti- According to its yearly financials, announced that it will set up a mate has dropped more than 12% Opaque overhaul Bursa Malaysia recorded a net separate entity called the since Pakatan Harapan assumed But who are we kidding here? profit of RM224 mil for FY18. Singapore Exchange Regulation power in May last year. First, the void has to be filled. We Pte Ltd (SGX RegCo) to assume While the reasons for that are have one transition on paper – Regulatory challenges regulatory powers. complex, from the US-China that is the chief regulatory officer But, Bursa Malaysia is the stock Questions still remain over trade war to political uncertainty will now become the CEO of market police. It has to regulate SGX RegCo’s independence, from within, the point is we are regulation. Also, Bursa Malaysia the behaviour of public-listed transparency and, most of all, no longer an attractive destina- promised a smaller, purpose- companies and market interme- effectiveness. This last bit is usu- tion. That should be fixed. driven outfit. But we are only diaries which are a source of its ally justified through that infa- Sadly, a new chief of regula- privy to the bits and bobs – not income. The nature of our stock mous case involving Malaysians tion doesn’t point to a resolution the entire setup. So we don’t exchange is that it is a disclo- John Soh Chee Wen and Quah in that direction. In fact, if any- know whether the end result is sure-based regime, so while Su-Ling. Both have been charged thing is clear about this whole truly a leaner outfit. regulators are tasked to protect with 189 and 178 charges respec- reshuffling drama, it is that Here’s the bigger picture: investors and uphold public tively. These mostly involved the ironically, the Bursa, a publicly Without the regulations aspect, interest, investors are expected giving of instructions over sev- listed entity with a fiduciary duty Umar is just the CEO of a typical Will Umar’s powers as CEO be to be responsible for their eral trading accounts used to to its shareholders, was never publicly listed company. He is a curtailed by the appointment of investment decisions based on allegedly manipulate shares in entirely transparent with all the man with minimal influence in the new regulation CEO? information provided by the Asiasons Capital Ltd, Blumont changes. FocusM 30 columns FocusM | Nov 30-Dec 6, 2019 Social protection necessary to quickly end poverty, hunger

• Lack of social protection leaves people vulnerable to poverty, inequality and social exclusion, constituting a major obstacle to economic and social development

• Most developing countries continue to experience high underemployment. With low commodity prices and escalating trade tensions, things are likely to get worse in the medium term

Over three-quarters of the world’s poor live in rural areas, where almost half the global population resides by Jomo Kwame Sundaram designed social protection. boost demand in local economies, million are not. In upper middle- combination of contributory and Anis Chowdhury The United Nations 2030 with desirable multiplier effects. income countries, 74 million (45%) social insurance and tax-based Agenda for Sustainable Social protection can ensure of the extreme poor get some social assistance. Countries can istorically, most Development Goals (SDGs) com- more and better food consump- support, while 93 million do not. use the ILO Social Protection social security sys- mits countries to “implement tion, reducing food insecurity and According to the World Bank’s Floors Calculator to estimate the tems have devel- nationally appropriate social pro- seasonal hunger besides increas- World Development Report 2019, costs of child and orphan allow- oped in the formal tection systems and measures for ing dietary diversity. Improving only 18% of the poorest quintile in ances, maternity benefits, dis- sector of rich all, including floors, and by 2030 food access and diets reduces the low-income countries gets social ability and old-age pensions as economies.H However, most of the achieve substantial coverage of economic burden of undernutri- assistance, while 2% have social well as public works programmes poor and hungry in the world live the poor and the vulnerable”. tion, improving living standards, insurance, with these rates rising for those without jobs. in rural areas, surviving in the The Food and Agriculture productivity and incomes. to 77% and 28% respectively in informal economy. Organisation’s (FAO) 2015 State of It also helps poor households upper-middle-income countries. Sustainable? Meanwhile, the world econ- Food and Agriculture showed better manage risk, reducing reli- Enough social protection can omy continues to struggle to that social protection can not ance on, and vulnerability to Affordable? quickly end hunger and poverty, recover following the 2008 finan- only quickly reduce hunger, usury, clientelism and other Fiscal austerity has undermined but is not sustainable without cial crisis. Prospects remain bleak extreme poverty and deprivation, exploitative arrangements. social protection in recent times. higher earnings for the poor able as many governments pursue but also economic and social risk Gender-sensitivity in the design Together with persistent unem- to work. An early big push for fiscal austerity in the face of per- as well as vulnerability. Having and delivery of social protection ployment, lower wages and fiscal pro-poor investments will gener- ceived financial market pres- social protection in place also not only improves food security, austerity measures have contrib- ate such additional incomes ear- sures. enables governments to better but also empowers women. uted to increasing poverty, now lier, reducing longer term financ- Most developing countries respond to crises. affecting 86 million people in the ing costs. continue to experience high Limited social protection European Union alone. Over three-quarters of the underemployment, even if official Reducing vulnerability Social protection is a universal Efforts to induce private world’s poor live in rural areas, unemployment rates remain low. Social protection should involve human right. But the investments in recent decades where almost half the world’s With low commodity prices and policies and programmes International Labour Office’s have seen sharp declines in mar- population resides. Raising rural escalating trade tensions, things designed to reduce and prevent (ILO) World Social Protection ginal tax rates as countries incomes sustainably is necessary are likely to get worse in the poverty and vulnerability. World Report 2017-19 found only 45% of engage in harmful tax competi- to eliminate poverty and hunger. medium term. Bank estimates suggest that the global population had at least tion. This has also adversely Rising incomes should, in social protection prevented 150 one social benefit, while the affected governments’ abilities to turn, increase investments, expe- Eliminating hunger and million people worldwide from remaining four billion people are maintain and extend social pro- diting exit from the vicious cycle poverty falling into poverty in 2010, albeit totally unprotected. tection. of poverty, and eventually reduc- Even if long-term growth really unevenly. Coverage gaps reflect under- The Rome-based UN food ing the need for social protection. lifts all boats, which there is no Social protection can also investment in social protection, agencies estimated how much it Clearly, ending hunger and evidence for, it cannot eliminate enable investments by benefici- particularly in African, Asian and would cost to sustainably end poverty sustainably is eminently hunger and poverty by 2030, aries to enhance their own pro- Arab countries. The World Bank’s hunger and poverty by 2030. The viable, feasible and affordable. With especially as inequality mutes the ductive capacities, earned The State of Social Safety Nets ILO’s costing estimates for 57 sufficient political will and solidar- impact of growth on poverty incomes, consumption, health, 2014 reported that 345 million are lower-income countries imply ity, we can end hunger and poverty reduction. The struggle to escape education, and wellbeing. covered, while 870 million of the that even the poorest countries quickly and permanently. FocusM poverty is slowed as growth is not Contrary to widespread extreme poor in the world are not can afford to extend some social inclusive. popular prejudices, it does not covered at all. protection to all their citizens. Jomo Kwame Sundaram, a former Many non-poor households reduce adult work effort and Unsurprisingly, the biggest While some countries have economics professor, was United remain vulnerable to poverty as incomes, enabling children to shortfalls are in low-income the fiscal space to quickly develop Nations Assistant Secretary-General they face various shocks which work less, and to attend school countries, where 47% of the and extend social protection for Economic Development, and cause them to fall into poverty. instead. population is extremely poor, less floors, others will have to gradu- received the Wassily Leontief Prize Such shocks typically have long- Lack of social protection than a tenth of the population, or ally extend coverage and benefits. for Advancing the Frontiers of lasting negative impacts on the leaves people vulnerable to pov- about one in five of the extremely Most low-income countries will Economic Thought. Anis poor. However, with the requisite erty, inequality and social exclu- poor, has some support. need external budgetary support, Chowdhury is Adjunct Professor, political commitment and fiscal sion, constituting a major obsta- In lower middle-income at least initially. Western Sydney University and resources, poverty and hunger cle to economic and social devel- countries, 173 million (28%) Countries normally achieve University of New South Wales can be reduced quickly with well- opment. Higher incomes also extreme poor are covered, but 479 universal coverage through a (Australia) FocusM | Nov 30-Dec 6, 2019 31 markets Boycott Black Friday, save the world

• Whether it’s for environmental or commercial reasons, any break on the event is welcome by Andrea Felsted

n London’s Oxford Street last weekend, you could almost forget we were in the midst of a retail Oapocalypse. Christmas lights and a slew of special offers marking an ever earlier start to the imported bargain frenzy, Black Friday, brought out the crowds. Similar holiday cheer and promotions have spread elsewhere in Europe too. But European retailers face a When it comes to Black Friday, the more shoppers who shun it, the better new worry: Shoppers are deliber- ately staying away in order to safeguard the planet. gaining traction. These different initiatives some academic evidence to sug- sacrificing margin. Conspicuously skipping con- In France, where retailers are underline the increasing focus on gest that shopping online is actu- Some store groups that previ- sumption is a long-term threat. bracing for a Dec 5 nationwide shopping’s impact on the envi- ally more sustainable. But that is ously embraced Black Friday have But when it comes to Black strike that may last longer, youth ronment. not always the case. When a now rowed back, led by Asda, the Friday, the more shoppers who activists are joining with The CEO of Hennes & whole range of factors are taken UK arm of Walmart Inc. Wm shun it, the better. Extinction Rebellion to protest at Mauritz AB, which has been seek- into account, including returns, Morrison Supermarkets Plc is For European stores, intro- shopping malls and elsewhere on ing to make its clothing more ultra-fast delivery, subscription also getting less involved. ducing the crazy US holiday Friday in an action called sustainable since the 1990s, programmes that encourage Others, such as the electron- shopping tradition has been an #BlockFriday. recently warned of the threat of repeat purchases, collecting par- ics chains AO World Plc and act of self-harm. If protests per- Ecology Minister Elisabeth consumer shaming. cels by car and showrooming – Dixons Carphone Plc, plan pro- suade stores to cut back on this Borne has weighed in, warning Associated British Foods Plc’s where customers travel to stores motions with suppliers months in margin-destroying activity, both people about the pollution gener- Primark has been struggling in to evaluate products before advance. the planet and profitability would ated by Black Friday between all Germany, in part because some ordering – the picture is far less This year, the effect of Black benefit. of the extra delivery runs and consumers there believe that clear cut. Friday will be particularly perni- Black Friday first reared its packaging. “We can’t at the same because it’s cheap, it’s got to be Whether it’s for environ- cious. Falling after payday and ugly head in the UK around the time call for a reduction in bad for the environment. To mental or commercial reasons, kicking off the main spending start of the decade when local greenhouse gases and call for a address the growing concerns any break on the event is wel- weeks in the run up to the holi- chains responded to Amazon.com consumer frenzy like that,” she about fast fashion, the chain has come. Deloitte estimates that the day, it will be difficult for retailers Inc’s unleashing of post- says. There’s even a proposal by introduced clothing recycling average discount in the UK this that offer discounts to return to Thanksgiving discounts onto the lawmakers to ban Black Friday stations in its stores and November is about 27%, similar to full price. Add in Brexit uncer- British public. The trend hit con- promotions altogether. increased its use of sustainable last year, although deals started tainty in the UK and the upcom- tinental Europe later, but French In Lyon, ethical-clothing spe- cotton. earlier. ing strikes in France, and it and German retailers have cialist WeDressFair planned for ABF CEO George Weston has Retailers may win some incre- increases the potential for a stepped up their participation the second year to close its store also argued that it is greener to mental sales, but given the diffi- highly promotional period. over the past few years. and website on Black Friday. shop in physical stores than it is cult market conditions, that’s not More conscious consumers As the phenomenon grew, so Instead, customers can bring in to buy online. That’s significant guaranteed. So, unless they are are too late to prevent Black did resistance, with, for exam- their ripped jeans and shirts with because Black Friday is still pri- offering products that would have Friday from taking place in 2019. ple, International Buy Nothing missing buttons to be mended. marily a web-based phenome- gone into the January sale anyway, But if they force retailers to come Day urging us to switch off from They will also learn now to make non. or items specially made to be sold to their senses in future, it won’t shopping. But this year, the anti- more eco-friendly washing Determining which is greener cheaply on Black Friday, this level just be the environment that consumerism movement is powder. is not straightforward. There is of reduction means they will be wins. – Bloomberg

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*As of March 2019 32 income+ FocusM | Nov 30-Dec 6, 2019 Underserved SMEs are driving the growth of P2P financing

• P2P financing is an equal investment in each bor- alternative rower, resulting in an unequal spread. The portfolio was not bal- investment option anced to reduce my risk. that was introduced “ So, use the minimum alloca- only recently but is tion amount regardless of how already seeing rapid much capital you have. “Due to this limitation, inves- growth tors can’t scale up the interest income from P2P financing. You • Although it will hit the limit when you have lent a substantial amount.” generally offers more than 10% Rigorous due diligence returns, the risk of B2B Finpal head of business potential default can development and operations Er Chiang Chuan says, “We work deplete investors’ closely with our collaborative returns if they don’t partner to provide assistance diversify during the initial screening and with business performance ana- lytics. Most issuers on B2B Finpal’s A typical SME industrial park whose tenants’ activities account for the bulk of the country’s business platform are suppliers in the fast-moving consumer goods (FMCG) sector. by P2P financing investors are below Prior to signing up each Chee Jo-Ey the age of 35, which illustrates that issuer, B2B Finpal will run a rig- these alternative investments orous due diligence and credit mall business owners in through regulated online plat- assessment which includes anti- Malaysia still have lim- forms are garnering interest fraud checks, litigation search, ited access to financing amongst a new generation of credit screening and financial despite making up 98% investors that may be less inclined review. of the business sector. It to invest in traditional asset Each issuer will be assigned a Sis unsurprising then that an alter- classes like real estate, stocks, risk grade which determines the native investment, peer-to-peer unit trust and bonds. applicable interest rate. The (P2P) financing, is gaining trac- “P2P platform operators have issuer will also be assigned a tion. disclosed that as an industry, 69% credit limit according to factors The P2P financing industry in of the financing disbursed to like financial standing, historical the country has reportedly raised SMEs are for amounts not business volume and risk level. nearly RM377 mil as of June this exceeding RM50,000. B2B Finpal requires a mini- year, funding over 1,100 small and “This indicates that the indus- mum investment amount of medium enterprises (SMEs). try is serving a micro-segment of Adam: Almost 70% of the The industry’s disbursement RM1,000 to open an account. But P2P financing involves inves- the broader SME base in financing disbursed to SMEs are grew 150% within two years, says the minimum amount an investor tors lending money to individuals Malaysia,” Adam adds. for amounts up to RM50,000 Wong can place for each issued note is and businesses via P2P platforms. RM100. Investors with limited capital can Growing need for P2P Fundaztic places a lot of start investing with as little as financing “Fundaztic focuses on micro, the track record or collaterals that emphasis on credit behaviour and RM50 in P2P lending while busi- Despite only being introduced by small and new businesses and has conventional lenders or financial sets a very low exposure limit of nesses get access to funding with- the Securities Commission in been disbursing funding at an institutions require. up to RM200,000 in funding. out having to go through the 2016, the P2P financing platform average size of RM75,000. We The ease of investing and the “As we focus on small-sized stringent requirements set by has already shown significant target to serve 1,000 micro, small attractive returns are definitely funding and our entry barrier is banks. upward momentum. and medium enterprises by the strong pullers for the continuous just RM50, even the smallest FinTech Association of According to Funding end of this year,” explains Ng. growth of the P2P industry. investor would be able to diversify Malaysia committee member Societies co-founder and CEO Usually, traditional financial and build a portfolio of at least a Adam Malik believes that the P2P Wong Kah Meng, the P2P financ- institutions assess SME financing High returns, high risks 100 notes with as little as financing industry will continue ing industry’s disbursal amount applications by using two metrics: P2P lending may promise higher RM5,000,” says Ng. to scale as many underserved has grown from RM212 mil in 2018 creditworthiness and bankability. returns than most traditional Investors are advised to SMEs do not have the requisite to RM520 mil up to September Creditworthiness – can the investments but investors take on spread their risk thinly and evenly years of audited accounts this year - a 150% growth! SME commit to the financing greater risks as well. by investing in almost equal required by traditional financial “Funding Societies has grown repayment? Bankability – the Finance blogger KC Lau amounts in all notes. institutions due to their limited from RM100 mil in disbursements financing amount and tenure explains that P2P financing gener- If an investor on Fundaztic’s operation tenure and track in 2018 to more than RM300 mil applied for may be too small or ally promises more than 10% platform has built a portfolio of record. in 2019. The figures also serve to too short and thus not viable for returns but the risk of potential 100 notes within 12 months and in “More often than not, SMEs highlight Funding Societies’ more banks to provide. default can deplete investors’ amounts that do not deviate more are looking for smaller financing than 50% market share domi- Also, many SMEs are not able returns if they don’t diversify. than three times from the average amounts that make it less appeal- nance in Malaysia,” he adds. to provide the necessary collateral He says the general rules of investment per note, he or she is ing for financial institutions,” he Fundaztic CEO Kristine Ng and documents required by tradi- thumb for investing in P2P lend- entitled to Principal Protect. says. opines that the P2P industry is tional financial institutions. ing are to spread your capital Principal Protect is According to Adam, the P2P still in its infancy stage in Some SMEs are unable to equally to several borrowers and Fundaztic’s assurance to investors financing industry in Malaysia has Malaysia. The first six registered meet the complex requirements to go with the minimum invest- that should an investor lose any raised more than RM500 mil as of P2P financing platform operators of traditional financing or the ment amount, say RM50 or capital, the platform would bear September this year for more including Fundaztic only came products offered by these institu- RM100 and nothing more. the losses if all terms and condi- than 1,500 SMEs since the first into being around two and a half tions may not be suitable or Lau relates,”I made the mis- tions are met. approved P2P platform launch in years ago. cannot be ‘customised’ to SME take of wanting to invest RM1,000 The minimum investment 2017. However, the growth is very applicants’ needs. equally in each opportunity. But I amount on Fundaztic’s platform P2P is gaining traction, espe- commendable and P2P looks set This is where the flexibility of was not able to lend RM1,000 to is only RM50 and it charges a fee cially on the demand side, as to become a strong alternative P2P financing in offering shorter- each borrower. of 1% on the monthly repayments. SMEs require only small working funding and investment vehicle term or lower-amount financing “Some opportunities were The fees are only charged upon capital to ensure that their cash- for Malaysians as the industry is to the SMEs fits in nicely in serv- taken up in no time and I could receipt of monthly repayments. flow is uninterrupted as well as to on its way to cross the RM700 ing these SMEs. only put in RM100 due to high The default rate for P2P expand their business. mil mark in disbursements by Some businesses may be demand. financing platforms in Malaysia On the investor side, 55% of end-2019. viable and are growing but lack “In the end, I don’t have an ranges from 0.18% to 3.52%. FocusM Nov 30-Dec 6, 2019 | FocusM | 33 Getting your child ready for the real world

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n my career as a chartered financial analyst (CFA) charter holder, I’ve come across my fair share of Face up to financial reality financial horror stories. IWhile some are victims of circumstance, others quite simply had poor financial management skills – which become apparent when they receive a bump in income. What should have been a great opportunity to grow wealth instead left these individuals dig- ging themselves deeper into debt. Last year, we decided it was time to take action. We believe it was our responsibility to shed some light into the state of financial literacy in the country. Our first simple survey done last year had results which left us in no doubt that Malaysians really are in trouble. With most respondents coming from Greater Kuala Lumpur, it was eye-opening to see just how big the number of respondents was who were effectively living from pay cheque to pay cheque.

Financial illiteracy is a national problem We believe it is crucial to con- The notion is that youths live a so-called YOLO lifestyle, caring for the present only and leaving tomorrow to take care of itself tinue to highlight financial literacy as a national problem, and that making the RinggitPlus Malaysian Financial Literacy • A survey done last year showed a significant truly worrying. Collaborate to get ahead Survey (RMFLS) an annual affair proportion of respondents were living from One part that surprised me The shocking results of the would give Malaysians the oppor- about the RMFLS 2019 results RMFLS 2019 is another strong call tunity to see if we have pro- one month’s salary to the next was the data we got from the to Malaysians to wake up and gressed as a financially-literate youths in the country. Compared face their financial realities. The society. The data would also be • This year, the results show that Malaysians to other age groups, more youths results also echo the motivation shared, allowing analysts and still have poor financial literacy (respondent age between 20 and behind the National Strategy for members of the media to further 29) saved above RM500 in a Financial Literacy 2019-2023, expand from our findings. month. They are also more which aims to cultivate financial For this year, we are happy to • There’s a glimmer of hope that more youths frugal, making up the largest literacy across all age groups. collaborate with Visa aged between 20 and 29 are saving and are proportion who spend less than Further to that, I believe the goal International, a global entity RM30 per day on meals and the of improving financial literacy which was also on a mission to also being more frugal second-largest age group that should be a shared responsibility improve financial literacy among spends below RM150 on a night between the government and consumers. This collaboration out. private entities. was a strong justification of our The RMFLS 2019 results also The data goes against the As business owners, we are cause, and allowed us to take the reveal Malaysians’ perspectives notion that youths live a so-called better exposed to the very real survey one step further and on insurance. We found that “YOLO lifestyle”, stressing that consequences of poor financial gather data from a much larger by more than half of the respon- you only live once, and so you management. As entrepreneurs, pool of respondents. We then got Hann Liew dents are ready to spend above should meet the wants of today we take calculated risks that may our data scientists to employ RM100 on a night out with and ignore the needs of tomor- yield better profits over time – stratified sampling to obtain a Malaysia, before widening to friends, but of this same group, row. They instead display some and sometimes we fail. Surely, dataset that is statistically repre- around 12% when we include an incredible 44.3% are not cov- basic understanding of financial our experience and expertise can sentative of our population. Sabah and Sarawak. ered by insurance at all. management. be pooled and shared with other Once again, the results show Another interesting statistic However, there are still areas Malaysians both on an organisa- that Malaysians still have poor we found shows that regardless Those in their 20s show to address. For instance, 54.6% of tional and public level. financial literacy. In fact, our of demographic, Malaysians promise youths do not have a retirement Our collaboration with Visa results show that in general, simply do not save enough: a That’s right – there’s a significant plan – even when more than International demonstrated what financial literacy is just as much staggering 20.7% do not save any number of Malaysians who would 90% agreed that their EPF sav- we can achieve when we pool an issue for urbanites as it is for money each month. spend more money in one night ings will not be enough. On top both resources and expertise those living in rural areas. We The popular Malay proverb, than to protect themselves for a of that, a quarter of youths in towards a common goal. At found that in some cases, the rich Sediakan payung sebelum hujan, month. With a huge selection of Malaysia are not covered by any RinggitPlus, we have collaborated and the poor faced the same espouses being ready for an affordable insurance policies, form of insurance. These two with various partners who share financial issues. emergency. But as our data some of which can even be pur- data points are a strong indica- the same goals. shows, the umbrella is almost chased online without medical tor of a lack of financial literacy Whether it is creating a chat- Malaysians in denial always not big enough. check-ups, I find this statistic and awareness. bot that assists first-time home- Our headline finding led us to buyers, developing a series of believe that Malaysians may be in videos that explain life insurance denial of their financial reality. in layman terms, or even organ- About 69.3% of respondents said ising free workshops with certi- they are in control of their fied financial advisers, we believe finances, but a shocking 53% of our actions speak volumes as this group also admit to not being champions of financial literacy. able to survive for more than Let us work together – three months with only their sav- friends, colleagues, and peers – ings. How exactly do they believe and play our part in creating to be in control is a worrying financially-smart Malaysians. thought. FocusM Not only that, 43.4% of Malaysians spend equal to or Hann Liew is the CEO of more than what they earn, essen- Malaysia’s leading financial com- tially living from one month’s parison website, www.ringgit- earnings to the next. plus.com. He is also a Chartered Interestingly, this particular sta- Financial Analyst (CFA) and a tistic holds true both in the rural member of the Financial Planning and urban areas – the variance is Association Malaysia (FPAM) as a less than 5% across Peninsular Increasing financial literacy is a shared responsibility between the government and private entities Certified Financial Planner (CFP) Nov 30-Dec 6, 2019 | FocusM | 35

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Disclaimer: The description, illustration, photographs or information provided herein (”Information”) are subject to variation or substitution as maybe required by the relevant authorities or recommended by the consultants without prior notice. The information is not intended to form part of any offer or contract unless stated otherwise. While every reasonable care has been taken to ensure that the information is as accurate as possible, the Proprietor and Developer and/or its respective marketing agent, respresentative or nominated person will not be held responsible for any inadvertent inaccuracy. All illustrations are artist’s impression only. 36 focuslite FocusM | Nov 30-Dec 6, 2019

we decided that we’d take our time to complete this programme as we wanted to do this for our own self-development,” Couple enrich themselves explains Ng, a 36-year-old banker. She adds that their families and friends, while surprised at the beginning, ended up being supportive of her move to with SEGi’s PACE postpone her graduation and wait for Sim. For the couple, the MBA was meant to widen their knowledge and skills in the hen Sim Cheng Wui and field of general management so that they Catherine Ng made a deci- are able to perform better at their respec- sion to pursue their post- tive workplaces. Sim also expressed hope graduate studies four years that the qualification could pave the way ago, they were determined for him to start his own business in the toW support each other morally and intellec- near future so that he could provide a tually. better future for his family. After a brief period shopping online and MBA (General Management) promotes at education fairs, the couple decided to an understanding of core business and pursue their Master of Business management disciplines and students are Administration (General Management) taught ways to enhance their management through the Professional and Continuing skills and develop new ideas in the areas of Education or PACE channel offered by SEGi analysis, decision-making, communica- University Online. tion, problem-solving and leadership. Things went well in the beginning, The two-year programme covers core especially since the programme had flexi- modules like marketing management, ble study options like weekend classes and organisational behaviour, operations, and an online application that allowed them to quality management as well as specialised study independently. They were able to topics that include research methodolo- bounce ideas off each other and strengthen gies, managing in an international econ- their research findings from different per- Ng (left) and Sim smiling proudly on their graduation day at SEGi University Kota omy, project management framework and spectives. Damansara sustainability and international entrepre- Ng’s pregnancy became the motivating neurship development. factor that pushed her to complete her pone her graduation so that she could scrolls along with over 900 graduates from Apart from MBA, SEGi PACE also offers thesis just before her delivery last year. share that special moment with her hus- various programmes at the SEGi University various programmes ranging from Sim, however, was unable to catch up due band this year. Convocation Ceremony held at the Kota diploma to postgraduate studies in the to his heavy work schedule that involved a “My wife’s decision to postpone her Damansara campus. fields of Business and Accounting, lot of travelling. graduation came as a shock initially, but Sim, who scored a CGPA of 3.92, was Communication Studies and Early “I do technical sales so my work travel that quickly turned into a motivation that elated as he shared this joyous moment Childhood Care. arrangements can be unpredictable, hence pushed me to complete my programme with his wife who also graduated at the top SEGi PACE encourages flexible learning the delay in completing my MBA,” he says. and submit my thesis as soon as possible,” of her class. via applications, such as Blackboard, that When it was time for Ng to graduate in relates 38-year-old Sim. “With both our jobs, the baby in allow students to log in to their virtual November last year, she decided to post- The duo recently received their MBA between and us moving into a new place, classrooms from anywhere, anytime. FocusM Auto Bavaria relocates to largest BMW dealership facility in SEA

uto Bavaria Glenmarie, the years in a row from BMW Group Auto Bavaria MD Jeffrey Gan Sime Darby-owned BMW, Malaysia. says: “It is really important to AMINI and Motorrad dealer- Auto Bavaria Glenmarie celebrate the legacy and mile- ship, has moved to a new facility marked the move with a splendid stones of Auto Bavaria Glenmarie befitting its size at Sime Darby farewell event held in conjunction to ensure that the united spirit Motors’ auto mall. with Deepavali with almost 400 among our employees transitions For more than two decades, guests, including employees, over when we begin a new chap- A group photo of the management of Auto Bavaria at the farewell event Glenmarie has been home to the former dealer principals and ter at the new facility in in Glenmarie, Shah Alam BMW, MINI and Motorrad brand managing directors of Auto November. as well as for more than 350 Bavaria gathering to feast on “The relocation signifies our employees, steadily strengthen- classic Indian cuisine buffet, continued efforts and commit- Spanning over 23,161 sq m and the largest BMW facility in ing its position as one of the key whilst reminiscing fond memo- ment towards delivering Sheer costing RM57 mil, the Auto Southeast Asia. It boasts the BMW dealerships in Malaysia ries made together and new Driving Pleasure as well as an Bavaria Ara Damansara 4S which newest brand identity, expres- with multiple award wins, experience in store for them at exclusive buying experience that will represent the BMW, MINI sion, experience and double the including the Best BMW Dealer in their new home in Ara is synonymous with the BMW and Motorrad brands as well as workshop capabilities of the the Diamond Category for eight Damansara. brand.” BMW Premium Selection will be Glenmarie facility. FocusM

nspired by today’s generation of fash- influencers and creating omni-channel Universal ion-forward millennials, winter wear campaigns.” Iand travel accessories brand Universal The #UTEvolution campaign began Traveller (UT) has launched the on Nov 6 and features a wordplay video #UTEvolution campaign for its 2019-2020 that depicts an urban and relevant per- Traveller Fall/Winter Collection (FW19/20). spective on winter-fashion elements that The play-off between timeless stay true to six keywords – YoUThful, sophistication and trendy innovation aUThentic, oUTrageous, beautiful, abso- unveils effortlessly captures the stylish and savvy lute, and oUTstanding. modern traveller. The campaign also saw the launch of “In this digital era of social media and a series of wordplay visuals and videos collection accessible travel, the new trendsetting featuring celebrity influencers - Amelia generation is at the forefront of fashion,” Henderson, Azira Shafinaz, Daiyan says Universal Traveller head of mer- Trisha, Aedy Ashraf, Venice Min and for trendy chandising Victoria Zhuang. Juwei Teoh -who will each represent one “We see the #UTEvolution campaign of the six keywords. as an opportunity to tell our fashion-for- The 2019-2020 Fall/Winter collection generation ward story via digital platforms. The presents an extensive range of silhou- move will see the brand adapt to a digi- ettes, lengths and fabrics inspired by tal-savvy lifestyle and incorporate function-first designs that resonate with modern elements, appointing celebrity the sophisticated fashionista. FocusM Classic slim down jacket for the chic traveller FocusM | Nov 30-Dec 6, 2019 focuslite 37 Kenanga focuses on ethics and integrity

enanga Investment Bank Bhd (KIBB) recently organised an internal effort to proactively fight against fraud, in keeping with the government’s battle against corruption and fraud. KThis initiative by the investment bank is organised in conjunction with International Fraud Awareness Week (FAW). The overarching aim of the event is to further heighten an anti-fraud, anti-bribery and governance culture in the organisation. This is the third consecutive year that KIBB organised the event to raise awareness on the importance of fraud prevention in the financial services industry. Similar to previous FAWs, KIBB came up with creative activities, conducted fun games and quizzes over the last few weeks to demonstrate fraud awareness, detection and prevention in an interactive manner. Through these efforts, it aims to inspire and set a leading example for the financial services industry as well as for other Malaysian corporations in propagating the importance of collaborative efforts to fight fraud. This year, apart from 16 teams from KIBB, 22 teams from the regulatory, enforcement and professional From third left: Malaysian Anti-Corruption Commission chief commissioner Latheefa Koya, KIBB founder and adviser Tan bodies, other financial institutions as well as KIBB’s ven- Sri Tengku Noor Zakiah Tengku Ismail, chairman Izlan Izhab, and KIBB group MD Datuk Chay Wai Leong (right) at the launch dors took part in the anti-fraud games. FocusM of Kenanga’s 2019 Fraud Awareness Week recently

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Gastro Sentral’s Christmas dish of warm apple-yuzu smoked duck magret Festive spread and shows From left: SJMC consultant clinical oncologist Dr Yap Beng Khiong, Dr Anand, Wong and Hogan planting a at Le Meridien KL tree to commemorate World Lung Cancer Awareness month

e Méridien Kuala Lumpur fish and filo-wrapped tiger n conjunction with World Lung Cancer lung cancer early when it can be treated more is swinging into the party prawns served with ragu of Awareness month, Subang Jaya Medical effectively and this could lower the mortality Lmood with an array of kiefler potato, artichoke and Centre (SJMC) is collaborating with Lung rate. scrumptious Yuletide delights, warm shallot-caper vinaigrette. Cancer Network Malaysia to provide free Screening of high-risk individuals with LDCT special performances and more. One may also indulge in low-dose computed tomography (LDCT) is cost effective and could be life-saving. Long- To get patrons into the spirit, Gastro Sentral’s four-course New screeningI to 20 patients. term smokers or former smokers aged 45 to 75 there will be special perform- Year’s Eve dinner priced at The free screenings are provided with the may benefit. ances and Christmas carolling at RM218 nett per person that aim of creating greater awareness of lung cancer “The Magnolia Champaca tree represents life, its dining outlets on the eve and includes complimentary and to educate the public on early detection. as it gives fresh air for our lungs. It will be a nice Christmas Day. entrance to the New Year’s Eve To commemorate the month, SJMC CEO addition to our garden in front of the Mediplex Gastro Sentral will be offer- countdown party at Pool Bar & Trish Hogan planted a tree in front of Mediplex building, which is where our Health Screening ing a three-course Christmas Grill@8. with guest of honour, Wong Chen, who is the Centre is situated. We hope as it grows in size, Eve dinner priced at RM188 nett From Dec 2 to 31, visit Member of Parliament for Subang, and SJMC lives are saved with early health screenings,” per person. Look forward to ArtCacao at lobby level to check consultant cardiothoracic surgeon and Lung Hogan says. dishes such as warm apple-yuzu out the hotel’s festive goodies. Cancer Network Malaysia president Dr Anand “Through appropriate screening, we hope to smoked duck magret and citrus From ginger bread house and Sachithanandan. achieve stage migration so that more Malaysians confit duck leg roulade complete yule logs to the classic Panettone Lung cancer is on the rise and 90% of cases with lung cancer are diagnosed at an earlier with foie de canard gyoza or the and festive eclairs, there is here are diagnosed too late, either in stage three stage that is amenable to curative therapy and extra virgin olive oil seared king- something for everyone. FocusM or four with poor outcomes. Screening detects better outcomes,” adds Dr Anand. FocusM 38 rewind FocusM | Nov 30-Dec 6, 2019

REDtone International Bhd AGM Dec 3, 10am This meeting seeks approval for the audited financial statements for the year ended June 30 , 2019, re-election of directors and directors’ fees. Bukit Jalil Golf & Country Resort, Bukit Jalil, KL

Gamuda Bhd AGM & EGM Dec 5, 10am The AGM seeks approval for the audited financial statements for the year ended July 31, 2019, re- election of directors and directors’ fees. The EGM seeks 1 approval for a dividend reinvest- ment plan.

AmBank (M) Bhd cards & mer- 2 Kota Permai Golf & Country Club, 1chant services acting head Brian Section 31, Shah Alam, Selangor Boey (right) and Mastercard account management for Malaysia Berjaya Food Bhd AGM & Brunei VP Rakesh Chauhan (left) Dec 5, 10am with the winners of the AmBank Shareholders’ approval is sought Mastercard Fly, Stay and Play cam- Compiled by for the audited financial state- paign phase 2 on Nov 26. Iqbal Ismail and ments for the year ended June 30, Xavier Kong 2019, re-election of directors and directors’ fees. Photos by Universiti Utara Malaysia deputy Iqbal Ismail 2vice-chancellor for research & Bukit Jalil Golf & Country Resort, innovation Prof Ayoib Che Ahmad Bukit Jalil, KL (second from right) presenting a completion certificate to one of the MK Land Holdings Bhd SME graduates, accompanied by AGM Bank Islam Malaysia Bhd CEO Mohd Dec 5, 10am Muazzam Mohamed (left) and SME This meeting seeks approval for Corp Malaysia CEO Noor Azmi Mat 3 the audited financial statements Said (right) recently. for the year ended June 30, 2019, the re-election of directors and directors’ fees. From left, seated: Arts, Live 3Festival and Events Association Sime Darby Convention Centre, (ALIFE) VP, co-founder & director Bukit Kiara, KL Brian Johnson Lowe, Deputy Tourism, Arts and Culture Minister GD Express Carrier Bhd Muhammad Bakhtiar Wan Chik, AGM ALIFE president Rizal Kamal and Dec 5, 11am KLCC GM Alan Pryor with ALIFE Shareholders’ approval is sought council members and panel of for the audited financial state- speakers recently. ments for the year ended June 30, 2019, a single-tier dividend of 0.25 sen per share, re-election of direc- Health Minister Datuk Seri Dr tors and directors’ fees. 4Dzulkefly Ahmad (centre) with 4 Axiata Digital Services Sdn Bhd CEO Setia City Convention Centre , Mohd Khairil Abdullah (left) and RHB Setia Alam, Shah Alam, Selangor Banking Group MD Datuk Khairussaleh Ramli (second from Berjaya Sports Toto Bhd left) at the launch of Boost e-wallet at Klinik Kesihatan Cheras on Nov 26. AGM Dec 6, 10am This meeting seeks approval for

the audited financial statements From left: China Harbour for the year ended June 30, 2019, 5Engineering Co Ltd CFO Xiong re-election of directors and direc- Sheng Quan, TRX City Sdn Bhd COO tors’ fees. Tan Hwa Min, CCCG Real Estate Group VP & CCCG Overseas Real Bukit Jalil Golf & Country Resort, Estate Pte Ltd chairman Sui Zhen Bukit Jalil, KL Hai, Core Precious Development 5 Sdn Bhd chairman & MD Zhang Bao, WCT Holdings Bhd deputy MD Goh Technodex Bhd AGM & Chin Liong and China EGM Communications Construction Co Dec 6, 10am Sdn Bhd MD Ni Qing Jiu at the The AGM seeks shareholders’ launch of the RM1.4 bil Core approval for the audited financial Residence @ TRX on Nov 27. statements for the year ended June 30, 2019, re-election of directors and directors’ fees. The EGM seeks the consent fo r placement of up to 30% of the issued shares of the company. Connexion Conference & Event Centre, Bangsar South, KL FocusM | Nov 30-Dec 6, 2019 rewind 39

Deputy Tourism, Arts and Culture 2 3 1Ministerr Muhammad Bakhtiar Wan Chik (fifth from right), Kuala Lumpur Pavilion Sdn Bhd retail CEO Datuk Joyce Yap (fourth from right) with anchor tenants at the unveiling of the major tenants of Pavilion Bukit Jalil on Nov 26.

Digi Telecommunications Sdn Bhd 2chief digital officer Praveen Rajan (left) and AXA Affin Life Insurance Bhd CEO Rohit Nambiar after annoucing Digi’s Omni Hotline as its preferred virtual office phone provider on Nov 27.

Damansara Realty Bhd group MD 3Brian Iskandar Zulkarim (right) receiving the award from Deputy 4 5 Human Resources Minister Datuk Mahfuz Omar (second from right), witnessed by Malaysia Board of Technologists president Tan Sri Ahmad Zaidee Laidin (second from left) and registrar Mohd Nazrol Marzuke (left) on Nov 25.

Malaysia Digital Economy Corp 4CEO Surina Shukri (left) and Luno CEO & co-founder Marcus Swanepoel at the launch of Luno in Malaysia on Nov 27.

Credit Guarantee Corp Malaysia 5Bhd president & CEO Datuk Mohd Zamree Mohd Ishak (right) presenting the Back-to-School packages to students of SK Jeram.

Youth and Sports Minister Syed 6Saddiq Syed Abdul Rahman (centre), Permodalan Nasional Bhd president & group CEO Jalil Rasheed (third from right), RHL Ventures managing partners Raja Hamzah Abidin 6 7 (second from right) and Rachel Lau (third from left) at the RHL Ventures accelerator programme launch on Nov 26.

Energy, Science, Technology, 7Environment and Climate Change Ministry deputy secretary- general Dr Mohd Nor Azman Hassan (right) receives a jacket from Cradle Fund Sdn Bhd acting group CEO Razif Abdul Aziz during the Cradle Startup Awards and Media Appreciation Night recently. 40 | FocusM | Nov 30-Dec 6, 2019

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