RM1.9B in 1MDB-Related Funds Back to Malaysia Public Bank’S Report on Page 3
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MALAYAN CEMENT TO TAKE OVER YTL CEMENT’S CEMENT AND READY-MIXED CONCRETE BIZ IN RM5.16B DEAL p7 THURSDAY, MAY 13, 2021 www.theedgemarkets.com ISSUE 184/2021 CEOMorningBrief HOME: Malaysia’s new Covid-19 cases jump to 4,765 today, with record 39 deaths reported p2 Maybank says Malaysian economic rebound on track but risk tilted to downside on MCO p10 WORLD: Major overhaul of WHO needed after failures, says Covid panel p16 BLOOMBERG US DoJ remits RM1.9b in 1MDB-related funds back to Malaysia Public Bank’s Report on Page 3. years of ‘disciplined cost control practices’ pay off when the going gets tough Report on Page 6. THURSDAY MAY 13, 2021 2 THEEDGE CEO MORNING BRIEF THE EDGE CEO MORNING BRIEF PUBLISHED BY PUBLISHER + CEO . Ho Kay Tat Read from desktop or mobile device. EDITOR-IN-CHIEF . Azam Aris CHIEF COMMERCIAL OFFICER . Sharon Teh You can print in A4 to read. Set print (266980-X) mode to fit or shrink oversize page. CHIEF OPERATING OFFICER . Lim Shiew Yuin TEL . 603-77218000 EDITORS . Kathy Fong . Jenny Ng . Joyce Goh Tan Choe Choe . Lam Jian Wyn Level 3, Menara KLK, 1 Jalan PJU 7/6, TO GET ON EMAILING LIST Mutiara Damansara, 47810, Petaling Jaya, TO CONTACT EDITORS: [email protected] [email protected] Selangor, Malaysia TO ADVERTISE: [email protected] HOME Malaysia’s coronavirus curve climbs again amid third infection wave Malaysia’s new 6000 Daily new cases 7-day moving average Covid-19 cases 5000 4,765 jump to 4,765 4000 4,121 3000 today, with record 2000 39 deaths reported 1000 0 Sept 1, 2020 May 12, 2021 BY ARJUNA CHANDRAN SHANKAR theedgemarkets.com KUALA LUMPUR (May 12): Malaysia re- The total number of cases in the country A total of 3,124 Covid-19 patients were ported a record high of 39 Covid-19 deaths now stands at 453,222, while total deaths have discharged today, raising total recoveries to today, while new cases rose sharply to 4,765 risen to 1,761. The 39 patients who died in the 411,360, or 90.76% of total cases. Active cases from 3,973 yesterday. The new cases are the 24 hours as of noon today were aged between now stand at 40,101. highest since Jan 31 and the fourth highest 43 and 88 years, and included two foreigners. Another 20 new Covid-19 clusters were since the virus first landed on Malaysian Of the new deaths, 10 were registered in Johor, reported today, raising total clusters identified shores. eight in Kuala Lumpur, five in Selangor, three in the country to 1,840. Of that, 1,378 clus- Health director-general Tan Sri Noor Hish- in Sabah, and two each in Kedah, Sarawak, ters have ended, leaving 462 active clusters. am Abdullah said the jump in new cases was Kelantan and Pahang. One death each was Twelve of the new clusters are workplace expected, and warned that daily infections registered in Perak, Melaka, Negeri Sembilan, infections, while five involved the communi- could breach the 5,000 mark by mid-May. Terengganu and Putrajaya.Meanwhile, 4,578 ty. Of the remaining three clusters, one was Selangor contributed 2,082 new cases, of today’s 4,765 cases were locally transmitted, from a high-risk group, another was linked to followed by Kuala Lumpur (540), Sarawak including 461 cases involving foreigners. The a religious group, and the third was linked to (405), Johor (348), Kelantan (297), Penang seven imported cases, meanwhile, comprised an educational institution under the Ministry (259) and Kedah (226). five Malaysians and two foreigners. of Education. More Covid-19 cases of South African, Indian variants detected in Malaysia KUALA LUMPUR (May 12): Another 14 BY ARJUNA CHANDRAN SHANKAR “However, he tested positive on April Covid-19 cases of the South African vari- theedgemarkets.com 21, when he was brought to the emergen- ant have been detected in Malaysia, along cy and trauma unit after displaying severe with a second case of the Indian variant. screening. Of the remaining three, one case Covid-19 symptoms. His health declined Health director-general Tan Sri Dr each was detected from the Bangkahulu and and he passed away on May 1,” Dr Noor Noor Hisham Abdullah said the 14 cases Bayan Cenderawasih clusters, and another Hisham said. of the South African variant were detected one was detected from a person after being in Kelantan, Kedah, Selangor, and Negeri vaccinated. Read also: Sembilan. As for the latest case of the Indian variant, These raised to 62 the number of cases Dr Noor Hisham said it again involves a for- Emergence of new Covid-19 variants sees of that variant discovered in Malaysia so eigner, who has since passed away. Malaysia facing more challenging third far, he said in a statement. He said the deceased arrived in Malaysia wave — PM Muhyiddin Click here Seven of these cases were detected from on April 7 and went through a Covid-19 test the Kampung Dolmis cluster, while anoth- at the border, with two tests done on April 7 China’s Sinovac shot found highly er four were detected during close contacts’ and April 12, both showing a negative result. effective in real world study Click here Note: Dear readers, there will be no CEO Morning Brief tomorrow (May 14) as we are taking a break for Hari Raya Aidilfitri. We will be back on Tuesday (May 18). For the latest news during the holidays, check out https://www.theedgemarkets.com/. THURSDAY MAY 13, 2021 3 THEEDGE CEO MORNING BRIEF HOME BLOOMBERG US DoJ remits RM1.9b in 1MDB-related funds back to Malaysia KUALA LUMPUR (May 12): The US BY ARJUNA CHANDRAN SHANKAR Finance Minister Tengku Datuk Seri Department of Justice (DoJ) has remitted theedgemarkets.com Zafrul Tengku Abdul Aziz said the current some RM1.9 billion or US$452.36 million balance is sufficient to service 1MDB’s debt in funds related to 1Malaysian Develop- obligations for 2021 and 2022 only. He add- ment Bhd (1MDB) into Malaysia’s Asset 1MDB and its former subsidiary SRC In- ed that this balance excludes the RM2.83 Recovery Trust Account. ternational Sdn Bhd’s remaining debts. billion that will be received from AmBank In a statement, the Ministry of Finance To date, the government has repaid Group and RM336 million from Deloitte. (MoF) said so far, the account had re- RM12.4 billion of 1MDB’s debt and “Negotiations are also currently ongo- ceived RM16.05 billion of seized and re- RM3.1 billion of SRC’s debt. The out- ing with KPMG. Once all recovered funds patriated 1MDB funds. The ministry add- standing debt balance which is composed in the Trust Account have been utilised, ed that any balance in the trust account, of principal and coupon, profit and interest the government will still have to continue which is under the custody of the Account- of bonds, sukuk and term loans stands at bearing the burden of servicing 1MDB’s ant-General’s Department of Malaysia, RM39.8 billion for 1MDB and RM2.57 debt obligations, which were backed by will be used to primarily repay and service billion for SRC. CONTINUES ON PAGE 4 The total of 1MDB’s remaining debts to be paid till maturity is RM39.8 billion, as follows: DEBT PAYMENT YEAR 2021 YEAR 2022 YEAR 2023 YEAR YEAR 2039 (RM MIL) DATE 2024-2038* INTEREST INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST INTEREST PRINCIPAL 1MDB GIL Bond March 9 Paid 277.20 – 277.20 12,600.00 – – – 1MELL Bond April 18 Paid 211.31 – – – – – – 1MEL Bond May 11 Paid 220.13 7,350.00 – – – – – Sukuk IMTN May 29 143.75 143.75 – 143.75 – 2,156.25 143.75 5,000.00 1MDB GIL Bond Sept 9 277.20 277.20 – – – – – – 1MELL Bond Oct 18 211.31 211.31 7,350.00 – – – – – 1MEL Bond Nov 11 220.13 – – – – – – – Sukuk IMTN Nov 29 143.75 143.75 – 143.75 – 2,156.25 – – Total 996.14 1,484.65 14,700.00 564.70 12,600.00 4,312.50 143.75 5,000.00 Total sum 39,801.74 Source: Finance Ministry THURSDAY MAY 13, 2021 4 THEEDGE CEO MORNING BRIEF HOME FROM PAGE 3 SRC’s remaining principal and profit amounts to be paid till maturity the government’s guarantee and letter of are RM2.57 billion, as follows: support when these debts were created. YEAR PAYMENT INTEREST PRINCIPAL AMOUNT REMARKS “This recovery would not have been DATE achieved without the excellent coopera- 2021 Feb 26 7,417,372.60 350,000,000.00 357,417,372.60 Paid tion between the government of Malaysia March 29 7,962,250.68 350,000,000.00 357,962,250.68 Paid and the US government, particularly with the DoJ. On behalf of the government of Aug 27 12,132,953.43 400,000,000.00 412,132,953.43 Malaysia, we would like to thank the US Sept 28 12,775,758.90 400,000,000.00 412,775,758.90 government and look forward to the con- 2022 Feb 28 15,849,172.60 400,000,000.00 415,849,172.60 tinued cooperation between us,” he added. March 28 24,002,630.67 585,015,247.72 609,017,878.39 “The government’s current recovery ef- 2,565,155,386.60 forts are focused on parties who have caused Source: Finance Ministry losses to 1MDB and SRC during the ex- ecution of their duties, whether through Repayment of 1MDB’s debt obligation from 2017-2021 are as follows: direct or indirect involvement in 1MDB and SRC’s various operations and transac- SOURCE OF FUND/ AMOUNT YEAR SHAREHOLDER ADVANCE/ SETTLED USING TRUST TOTAL tions, as well as those who have wrongful- INTERCO LOAN BY ACCOUNT FUNDS ly received SRC monies disguised as CSR GOVERNMENT TO 1MDB (corporate social responsibility) activities.